Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 29, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Entity Registrant Name | OUTERWALL INC | ||
Entity Central Index Key | 941,604 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Common Stock, Shares Outstanding | 16,614,033 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 1.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ||||
Cash and cash equivalents | $ 222,549 | $ 242,696 | $ 371,437 | $ 282,894 |
Accounts receivable, net of allowances of $1,272 and $2,223 | 38,464 | 48,590 | ||
Content library | 188,490 | 180,121 | ||
Prepaid expenses and other current assets | 51,368 | 39,819 | ||
Total current assets | 500,871 | 511,226 | ||
Property and equipment, net | 316,013 | 428,468 | ||
Deferred income taxes | 2,606 | 11,363 | ||
Goodwill and other intangible assets, net (Note 6) | 540,514 | 623,998 | ||
Other long-term assets | 6,056 | 8,231 | ||
Total assets | 1,366,060 | 1,583,286 | ||
Current Liabilities: | ||||
Accounts payable | 184,010 | 168,633 | ||
Accrued payable to retailers | 115,098 | 126,290 | ||
Other accrued liabilities | 141,437 | 137,126 | ||
Current portion of long-term debt and other long-term liabilities | 17,131 | 20,416 | ||
Total current liabilities | 457,676 | 452,465 | ||
Long-term debt and other long-term liabilities (Note 8) | 897,366 | 973,669 | ||
Deferred income taxes | 33,092 | 59,774 | ||
Total liabilities | $ 1,388,134 | $ 1,485,908 | ||
Commitments and contingencies | ||||
Stockholders’ Equity (Deficit): | ||||
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; 36,720,579 and 36,600,166 shares issued; 16,607,516 and 18,926,242 shares outstanding; | 485,163 | 473,592 | ||
Treasury stock | (1,151,063) | (996,293) | ||
Retained earnings | 643,452 | 620,389 | ||
Accumulated other comprehensive income (loss) | 374 | (310) | ||
Total stockholders’ equity (deficit) | (22,074) | 97,378 | $ 518,689 | $ 549,088 |
Total liabilities and stockholders’ equity (deficit) | $ 1,366,060 | $ 1,583,286 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 1,272 | $ 2,223 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
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) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 36,720,579 | 36,600,166 |
Common stock, shares outstanding | 16,607,516 | 18,926,242 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Statement of Comprehensive Income [Abstract] | |||||||||||
Revenue | $ 2,193,211 | $ 2,291,586 | $ 2,299,785 | ||||||||
Expenses: | |||||||||||
Direct operating | [1] | 1,493,088 | 1,581,311 | 1,556,999 | |||||||
Marketing | 35,674 | 35,293 | 30,227 | ||||||||
Research and development | 7,198 | 13,047 | 13,082 | ||||||||
General and administrative | 190,393 | 190,496 | 215,798 | ||||||||
Restructuring and related costs (Note 11) | 27,153 | 557 | 4,495 | ||||||||
Depreciation and other | 171,390 | 187,824 | 189,401 | ||||||||
Amortization of intangible assets | 13,550 | 14,654 | 10,907 | ||||||||
Goodwill impairment (Note 6) | $ 85,900 | 85,890 | 0 | 0 | |||||||
Total expenses | 2,024,336 | 2,023,182 | 2,020,909 | ||||||||
Operating income | 168,875 | 268,404 | 278,876 | ||||||||
Other income (expense), net: | |||||||||||
Income (loss) from equity method investments, net (Note 7) | (800) | (28,734) | 19,928 | ||||||||
Interest expense, net | (42,353) | (47,644) | (32,807) | ||||||||
Other, net | (2,657) | (1,185) | (3,599) | ||||||||
Total other expense, net | (45,810) | (77,563) | (16,478) | ||||||||
Income from continuing operations before income taxes | 123,065 | 190,841 | 262,398 | ||||||||
Income tax expense | (73,619) | (66,164) | (39,710) | ||||||||
Income from continuing operations | 49,446 | 124,677 | 222,688 | ||||||||
Loss from discontinued operations, net of tax (Note 12) | (5,109) | (18,059) | (47,896) | ||||||||
Net income | 44,337 | 106,618 | 174,792 | ||||||||
Foreign currency translation adjustment | [2] | 684 | [3] | 457 | [4] | 856 | [5] | ||||
Comprehensive income | 45,021 | 107,075 | 175,648 | ||||||||
Income from continuing operations attributable to common shares (Note 13): | |||||||||||
Basic | 48,117 | 120,748 | 217,215 | ||||||||
Diluted | $ 48,118 | $ 120,806 | $ 217,394 | ||||||||
Basic earnings (loss) per common share (Note 13): | |||||||||||
Continuing operations (in usd per share) | $ 2.75 | $ 5.98 | $ 7.98 | ||||||||
Discontinued operations (in usd per share) | (0.29) | (0.89) | (1.76) | ||||||||
Basic earnings per share (in usd per share) | 2.46 | 5.09 | 6.22 | ||||||||
Diluted earnings (loss) per common share (Note 13): | |||||||||||
Continuing operations (in usd per share) | 2.75 | 5.89 | 7.72 | ||||||||
Discontinued operations (in usd per share) | (0.29) | (0.88) | (1.70) | ||||||||
Diluted earnings per share (in usd per share) | $ 2.46 | $ 5.01 | $ 6.02 | ||||||||
Weighted average common shares [Abstract] | |||||||||||
Weighted average common shares - basic (in shares) | 17,467 | 20,192 | 27,216 | ||||||||
Weighted average common shares - diluted (in shares) | [6] | 17,487 | 20,503 | 28,169 | |||||||
Dividends declared per common share (in usd per share) | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 1.20 | $ 0 | $ 0 | ||||
[1] | “Direct operating” excludes depreciation and other of $118.7 million, $125.7 million and $129.1 million for 2015, 2014 and 2013, respectively. | ||||||||||
[2] | Foreign currency translation adjustment had no tax effect in 2015, 2014 and 2013. | ||||||||||
[3] | Foreign currency translation adjustment had no tax effect in 2015. | ||||||||||
[4] | Foreign currency translation adjustment had no tax effect in 2014. | ||||||||||
[5] | Foreign currency translation adjustment had no tax effect in 2013. | ||||||||||
[6] | Participating securities were included in the calculation of diluted earnings per share using the two-class method, as this calculation was more dilutive than the calculation using the treasury stock method. |
Consolidated Statements Of Com5
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Depreciation and other excluded from direct operating expenses | $ 118,700,000 | $ 125,700,000 | $ 129,100,000 |
Foreign currency translation adjustment, tax effect | $ 0 | $ 0 | $ 0 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) | Total | Common Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | ||
BEGINING BALANCE (in shares) at Dec. 31, 2012 | 28,626,323 | ||||||
BEGINING BALANCE at Dec. 31, 2012 | $ 549,088,000 | $ 504,881,000 | $ (293,149,000) | $ 338,979,000 | $ (1,623,000) | ||
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 | 12,655,000 | $ 12,655,000 | |||||
Adjustments related to tax withholding for share-based compensation (in shares) | (76,401) | ||||||
Adjustments related to tax withholding for share-based compensation | (4,195,000) | $ (4,195,000) | |||||
Share-based payments expense (in shares) | 223,173 | ||||||
Share-based payments expense | 16,831,000 | $ 16,831,000 | |||||
Excess tax benefit on share-based compensation expense | $ 3,287,000 | $ 3,287,000 | |||||
Repurchases of common stock (in shares) | (3,306,433) | (3,306,433) | |||||
Repurchases of common stock | $ (195,004,000) | (195,004,000) | |||||
Conversion of callable convertible debt, net of tax (in shares) | 272,336 | ||||||
Conversion of callable convertible debt, net of tax | (38,175,000) | $ (49,532,000) | 11,357,000 | ||||
Debt conversion feature (in shares) | 0 | ||||||
Debt conversion feature | (1,446,000) | $ (1,446,000) | |||||
Net income | 174,792,000 | 174,792,000 | |||||
Foreign currency translation adjustment | 856,000 | [1],[2] | 856,000 | [3] | |||
ENDING BALANCE (in shares) at Dec. 31, 2013 | 26,150,900 | ||||||
ENDING BALANCE at Dec. 31, 2013 | 518,689,000 | $ 482,481,000 | (476,796,000) | 513,771,000 | (767,000) | ||
Statement of Stockholders' Equity (Footnote) [Abstract] | |||||||
Foreign currency translation adjustment, tax effect | 0 | ||||||
BEGINING BALANCE (in shares) at Dec. 31, 2012 | 28,626,323 | ||||||
BEGINING BALANCE at Dec. 31, 2012 | $ 549,088,000 | $ 504,881,000 | (293,149,000) | 338,979,000 | (1,623,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Repurchases of common stock (in shares) | (13,745,799) | ||||||
Repurchases of common stock | $ (896,175,000) | ||||||
ENDING BALANCE (in shares) at Dec. 31, 2015 | 16,607,516 | ||||||
ENDING BALANCE at Dec. 31, 2015 | $ (22,074,000) | $ 485,163,000 | (1,151,063,000) | 643,452,000 | 374,000 | ||
BEGINING BALANCE (in shares) at Dec. 31, 2013 | 26,150,900 | ||||||
BEGINING BALANCE at Dec. 31, 2013 | 518,689,000 | $ 482,481,000 | (476,796,000) | 513,771,000 | (767,000) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Proceeds from exercise of stock options, net (in shares) | 103,260 | ||||||
Proceeds from exercise of stock options, net | 3,735,000 | $ 3,735,000 | |||||
Adjustments related to tax withholding for share-based compensation (in shares) | (61,543) | ||||||
Adjustments related to tax withholding for share-based compensation | (4,255,000) | $ (4,255,000) | |||||
Share-based payments expense (in shares) | 227,092 | ||||||
Share-based payments expense | 14,424,000 | $ 13,036,000 | 1,388,000 | ||||
Excess tax benefit on share-based compensation expense | $ 1,920,000 | $ 1,920,000 | |||||
Repurchases of common stock (in shares) | (7,925,227) | (7,925,227) | |||||
Repurchases of common stock | $ (545,140,000) | (545,140,000) | |||||
Conversion of callable convertible debt, net of tax (in shares) | 431,760 | ||||||
Conversion of callable convertible debt, net of tax | (516,000) | $ (24,771,000) | 24,255,000 | ||||
Adjustment and settlement of debt conversion feature classified as temporary equity | 1,446,000 | $ 1,446,000 | |||||
Net income | 106,618,000 | 106,618,000 | |||||
Foreign currency translation adjustment | $ 457,000 | [2],[4] | 457,000 | [3] | |||
ENDING BALANCE (in shares) at Dec. 31, 2014 | 18,926,242 | 18,926,242 | |||||
ENDING BALANCE at Dec. 31, 2014 | $ 97,378,000 | $ 473,592,000 | (996,293,000) | 620,389,000 | (310,000) | ||
Statement of Stockholders' Equity (Footnote) [Abstract] | |||||||
Foreign currency translation adjustment, tax effect | $ 0 | ||||||
Proceeds from exercise of stock options, net (in shares) | 49,000 | 48,992 | |||||
Proceeds from exercise of stock options, net | $ 2,552,000 | $ 2,552,000 | |||||
Adjustments related to tax withholding for share-based compensation (in shares) | (60,255) | ||||||
Adjustments related to tax withholding for share-based compensation | (4,013,000) | $ (4,013,000) | |||||
Share-based payments expense (in shares) | 206,676 | ||||||
Share-based payments expense | 17,288,000 | $ 12,258,000 | 5,030,000 | ||||
Excess tax benefit on share-based compensation expense | $ 774,000 | $ 774,000 | |||||
Repurchases of common stock (in shares) | (2,514,139) | (2,514,139) | |||||
Repurchases of common stock | $ (159,800,000) | (159,800,000) | |||||
Net income | 44,337,000 | 44,337,000 | |||||
Dividends (Note 20) | (21,274,000) | (21,274,000) | |||||
Foreign currency translation adjustment | $ 684,000 | [2],[5] | 684,000 | ||||
ENDING BALANCE (in shares) at Dec. 31, 2015 | 16,607,516 | ||||||
ENDING BALANCE at Dec. 31, 2015 | $ (22,074,000) | $ 485,163,000 | $ (1,151,063,000) | $ 643,452,000 | $ 374,000 | ||
Statement of Stockholders' Equity (Footnote) [Abstract] | |||||||
Foreign currency translation adjustment, tax effect | $ 0 | ||||||
[1] | Foreign currency translation adjustment had no tax effect in 2013. | ||||||
[2] | Foreign currency translation adjustment had no tax effect in 2015, 2014 and 2013. | ||||||
[3] | Foreign currency translation adjustment had no tax effect for the years ended December 31, 2015, 2014 and 2013. | ||||||
[4] | Foreign currency translation adjustment had no tax effect in 2014. | ||||||
[5] | Foreign currency translation adjustment had no tax effect in 2015. |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Operating Activities: | |||||||
Net income | $ 44,337 | $ 106,618 | $ 174,792 | ||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||
Depreciation and other | 177,247 | 195,162 | 193,700 | ||||
Amortization of intangible assets | 13,594 | 14,692 | 10,933 | ||||
Share-based payments expense | 17,240 | 13,384 | 16,831 | ||||
Windfall excess tax benefits related to share-based payments | (739) | (1,964) | (3,698) | ||||
Deferred income taxes | (19,619) | (22,611) | (10,933) | ||||
Impairment expense, restructuring and lease termination costs | [1] | 2,054 | 0 | 32,732 | |||
(Income) loss from equity method investments, net | 800 | 28,734 | (19,928) | ||||
Amortization of deferred financing fees and debt discount | 2,761 | 4,116 | 6,394 | ||||
(Gain) loss from early extinguishment of debt | (5,854) | 2,018 | 6,013 | ||||
Gain on purchase of Gazelle (Note 3) | (989) | 0 | 0 | ||||
Goodwill impairment (Note 6) | 85,890 | 0 | 0 | ||||
Other | (972) | (1,750) | (2,039) | ||||
Cash flows from changes in operating assets and liabilities: | |||||||
Accounts receivable, net | 10,011 | 8,671 | 7,978 | ||||
Content library | (8,320) | 19,747 | (22,459) | ||||
Prepaid expenses and other current assets | (10,065) | 44,282 | (50,542) | ||||
Other assets | 162 | 1,702 | 230 | ||||
Accounts payable | 17,943 | (68,912) | 1,491 | ||||
Accrued payable to retailers | (9,968) | (6,847) | (4,088) | ||||
Other accrued liabilities | 10,572 | 1,309 | (9,573) | ||||
Net cash flows from operating activities | [2] | 326,085 | 338,351 | 327,834 | |||
Investing Activities: | |||||||
Purchases of property and equipment | (77,591) | (97,924) | (161,412) | ||||
Proceeds from sale of property and equipment | 3,225 | 1,977 | 13,344 | ||||
Acquisitions, net of cash acquired | (17,980) | 0 | (244,036) | ||||
Receipt of note receivable principal | 0 | 0 | 22,913 | ||||
Cash paid for equity investments | 0 | (24,500) | (28,000) | ||||
Extinguishment payment received from equity investment | 0 | 5,000 | 0 | ||||
Net cash flows used in investing activities | [2] | (92,346) | (115,447) | (397,191) | |||
Financing Activities: | |||||||
Proceeds from issuance of senior unsecured notes | 0 | 295,500 | 343,769 | ||||
Proceeds from new borrowing on Credit Facility | 310,500 | 642,000 | 400,000 | ||||
Principal payments on Credit Facility | (339,375) | (680,125) | (215,313) | ||||
Financing costs associated with Credit Facility and senior unsecured notes | [3] | (9) | (2,911) | (2,203) | |||
Settlement and conversion of convertible debt | 0 | (51,149) | (172,211) | ||||
Repurchase of Notes (Note 9) | (34,589) | 0 | 0 | ||||
Repurchases of common stock | [4] | (159,800) | (545,091) | (195,004) | |||
Dividends paid (Note 20) | (21,210) | 0 | 0 | ||||
Principal payments on capital lease obligations and other debt | (11,510) | (13,996) | (14,834) | ||||
Windfall excess tax benefits related to share-based payments | 739 | 1,964 | 3,698 | ||||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | (1,461) | (520) | 8,460 | ||||
Net cash flows from (used in) financing activities | [2] | (256,715) | [5] | (354,328) | [6] | 156,362 | [7] |
Effect of exchange rate changes on cash | 2,829 | 2,683 | 1,538 | ||||
Increase (decrease) in cash and cash equivalents | (20,147) | (128,741) | 88,543 | ||||
Cash and cash equivalents: | |||||||
Beginning of period | 242,696 | 371,437 | 282,894 | ||||
End of period | 222,549 | 242,696 | 371,437 | ||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid during the period for interest | 45,502 | 41,614 | 20,699 | ||||
Cash paid during the period for income taxes, net | 100,544 | 36,777 | 55,989 | ||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||
Purchases of property and equipment financed by capital lease obligations | 2,397 | 8,198 | 7,408 | ||||
Purchases of property and equipment included in ending accounts payable | 2,577 | 8,255 | 6,656 | ||||
Non-cash gain included in equity investments | 0 | 0 | 68,376 | ||||
Common stock issued on conversion of callable convertible debt, net of tax | 0 | 24,255 | 14,292 | ||||
Non-cash debt issue costs | [3] | $ 0 | $ 4,500 | $ 6,231 | |||
[1] | The non-cash restructuring, impairment and related costs in 2015 of $2.1 million is composed of $7.4 million in impairments of lease related assets partially offset by a $5.3 million benefit resulting from the lease termination. The 2013 non-cash charge represents asset impairments of $32.7 million related to our four ventures previously included in our former New Ventures segment, Orango, Rubi, Crisp Market, and Star Studio, which were discontinued during 2013. | ||||||
[2] | During 2015 we discontinued our Redbox operations in Canada. 2014 also includes the wind-down process of certain new ventures that were discontinued during 2013. 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. | ||||||
[3] | Total financing costs associated with the Credit Facility and senior unsecured notes issued in 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. | ||||||
[4] | 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 $3.7 million. | ||||||
[5] | During 2015 we discontinued our Redbox operations in Canada. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada. | ||||||
[6] | During the first quarter of 2015, we discontinued our Redbox operations in Canada and during 2013, we discontinued four ventures, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada. | ||||||
[7] | During the first quarter of 2015, we discontinued our Redbox operations in Canada and during 2013, we discontinued four ventures, Orango, Rubi, Crisp Market, and Star Studio. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada. |
Consolidated Statements Of Cas8
Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | ||
Additional cash flow information | ||||
Impairment expense, restructuring and lease termination costs | [1] | $ 2,054 | $ 0 | |
Impairment of long-lived assets to be disposed of | 7,440 | |||
Gain (Loss) on Contract Termination | 5,300 | |||
Deferred Finance Costs, Gross | 8,200 | |||
Debt Instrument, Unamortized Discount | 6,564 | 8,783 | ||
Principal | 886,283 | 956,250 | ||
Payments of Financing Costs | [2] | 9 | 2,911 | |
Repurchases of common stock | [3] | $ (159,800) | (545,091) | |
Credit Facility | ||||
Additional cash flow information | ||||
Deferred Finance Costs, Gross | 2,200 | |||
Senior Unsecured Notes due 2021 | Senior Notes | ||||
Additional cash flow information | ||||
Debt Instrument, Unamortized Discount | $ 4,500 | |||
Principal | 300,000 | |||
Senior Unsecured Notes due 2019 | Senior Notes | ||||
Additional cash flow information | ||||
Deferred Finance Costs, Gross | 1,500 | |||
Tender Offer | ||||
Additional cash flow information | ||||
Professional fees paid | 3,700 | |||
Payments for Fees | $ 3,700 | |||
[1] | The non-cash restructuring, impairment and related costs in 2015 of $2.1 million is composed of $7.4 million in impairments of lease related assets partially offset by a $5.3 million benefit resulting from the lease termination. The 2013 non-cash charge represents asset impairments of $32.7 million related to our four ventures previously included in our former New Ventures segment, Orango, Rubi, Crisp Market, and Star Studio, which were discontinued during 2013. | |||
[2] | Total financing costs associated with the Credit Facility and senior unsecured notes issued in 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. | |||
[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, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 2015: • We made the decision to discontinue operating SAMPLE it in the fourth quarter of 2015. As SAMPLE it does not represent a major component of our operations or financial results, the results of SAMPLE it do not qualify to be reported as a discontinued operation and remain in our All Other reporting category. See Note 14: Business Segments and Enterprise-Wide Information for additional information. • 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 in the first quarter of 2015. 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 are included in our 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. • 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. • We acquired certain assets and liabilities of Gazelle, Inc. ("Gazelle") in the fourth quarter of 2015. Results of operations for Gazelle from the acquisition date, November 10, 2015, are included in our ecoATM segment. See Note 3: Business Combinations and Note 14: Business Segments and Enterprise-Wide Information for additional information. 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 and an online solution where consumers can sell certain electronic devices for cash and generates revenue through the sale of devices collected to third party resellers, through online marketplaces and through the Gazelle direct-to-consumer storefront. In addition to our three reportable segments, we may 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, convenience stores, financial institutions, malls and restaurants. Our kiosk and location counts as of December 31, 2015 , are as follows: Kiosks Locations Redbox 40,480 33,060 Coinstar 20,930 19,660 ecoATM 2,250 2,020 All Other (1) 120 120 Total 63,780 54,860 (1) As part of our decision to discontinue operating SAMPLE it in the fourth quarter of 2015, all SAMPLE it kiosks were removed from their locations during January 2016. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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); • recognition and measurement of purchase price allocation for business combinations; 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 $222.5 million and $242.7 million at December 31, 2015 , and December 31, 2014 , respectively. Of this total, cash equivalents were $2.7 million and $0.9 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, 2015 , and December 31, 2014 , were $83.3 million and $81.7 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, 2015 , and December 31, 2014 , were $46.2 million and $66.5 million , respectively in cash and cash equivalents held in financial institutions domestically and $9.0 million and $11.6 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 our 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 that better aligns 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 affected 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 6: 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, Rubi TM , Crisp Market TM and Star Studio TM . During the second quarter of 2013 we discontinued our Orango TM 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 18: 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 sale arrangement exists, delivery has occurred or services are rendered, the sales price or fee is fixed or determinable and collectability 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 $2.5 million and $1.5 million as of December 31, 2015 and December 31, 2014 , respectively. • Coinstar - Revenue from a coin transaction, which is collected from either consumers or card issuers (in stored value product transactions), is recognized at the time the consumers’ coins are collected by our coin-counting kiosks. Our revenue represents the fee charged for coin transactions. • ecoATM - Revenue is recognized upon the sale and shipment of devices collected to third parties and consumers. • All Other - Revenue was recognized in our discontinued SAMPLE it concept when the service transaction was completed. 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 $15.2 million , $11.8 million and $11.7 million in 2015 , 2014 and 2013 , 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 10: Share-Based Payments . Fair Value of Financial Instruments The carrying amounts for cash equivalents approximate fair value, which is the amount for which the instrument could be exchanged in a current transaction between willing parties. 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 15: Fair Value . Reclassifications To be consistent with our 2015 reporting, the following have been retrospectively reported in our Consolidated Statements of Comprehensive Income for all periods presented with no effect on net income, cash flows or stockholder's equity: • Results of our Redbox Canada operations which were discontinued during the first quarter of 2015. See Note 12: Discontinued Operations for additional information; • Restructuring and related costs. See Note 11: Restructuring for additional information; and • Basic and diluted earnings per share as a result of applying the two-class method of calculating earnings per share (the “Two-Class Method”). During the first quarter of 2015, the Two-Class Method became significantly more dilutive than the previously applied treasury stock method as a result of stock repurchases increasing the average number of unvested restricted awards (“participating securities”) as a percentage of total common shares outstanding. The impact of applying the Two-Class Method on both income from continuing operations and basic and diluted weighted average shares used to calculate earnings per common share is as follows: As Reported Under the Treasury Stock Method Amount Allocated to Participating Securities As Revised Under the Two-Class Method In thousands, except per share data 2014 2013 2014 2013 2014 2013 Income from continuing operations used in basic per share calculation $ 124,677 $ 222,688 $ (3,929 ) $ (5,473 ) $ 120,748 $ 217,215 Income from continuing operations used in diluted per share calculation $ 124,677 $ 222,688 $ (3,871 ) $ (5,294 ) $ 120,806 $ 217,394 Weighted average shares used in basic per share calculation 20,192 27,216 — — 20,192 27,216 Weighted average shares used in diluted per share calculation 20,699 28,381 (196 ) (212 ) 20,503 28,169 Basic earnings per common share from continuing operations $ 6.17 $ 8.18 $ (0.19 ) $ (0.20 ) $ 5.98 $ 7.98 Diluted earnings per common share from continuing operations $ 6.02 $ 7.85 $ (0.13 ) $ (0.13 ) $ 5.89 $ 7.72 See Note 13: Earnings Per Share for additional 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. Accounting Pronouncements Adopted During the Current Year 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 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 disposition of our Redbox operations in Canada (“Redbox Canada”). See Note 12: Discontinued Operations for additional information. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . This ASU requires all deferred tax assets and liabilities to be presented in the balance sheet as noncurrent and is effective for us in our fiscal year beginning January 1, 2016. We elected to early adopt this new guidance in the fourth quarter of 2015 and have applied the changes retrospectively. The changes to our 2014 Consolidated Balance Sheet as a result of adopting the new guidance are as follow: In thousands, except per share data As Reported Reclassifications As Revised Assets: Prepaid expenses and other current assets $ 39,837 $ (18 ) $ 39,819 Deferred income taxes - long term $ 11,378 $ (15 ) $ 11,363 Liabilities: Deferred income taxes - current $ 21,432 $ (21,432 ) $ — Deferred income taxes - long term $ 38,375 $ 21,399 $ 59,774 Accounting Pronouncements Not Yet Adopted In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (Subtopic 835-30) . This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, instead of as a deferred charge. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (Subtopic 835-30) . This ASU provides additional guidance to ASU 2015-03, which did not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-15 noted that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We do not expect this standard to have a material impact to our consolidated financial statements and related disclosures, which is effective for us in our fiscal year beginning January 1, 2016. Early adoption is permitted. As of December 31, 2015, we had $3.8 million of deferred financing fees recorded in other long-term assets in our Consolidated Balance Sheets . In April 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. We do not expect this standard to have a material impact to our consolidated financial statements and related disclosures, which is effective for us in our fiscal year beginning January 1, 2016. Early adoption is permitted. 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. In July 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017. Early adoption is permitted to the original effective date of December 15, 2016. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently in the process of evaluating the impact of ASU 2014-09. 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 do not expect this standard to have a material impact to our consolidated financial statements and related disclosures, which is effective for us in our fiscal year beginning January 1, 2016. Early adoption is permitted. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Note 3: Business Combinations Acquisition of Gazelle, Inc., On October 29, 2015 , Outerwall Inc. entered into an asset purchase agreement (the “Agreement”) with Gazelle, Inc. , a Delaware corporation ("Gazelle") that provides consumers an on-line solution for the sale and purchase of used mobile phones, computers and tablets. This taxable transaction closed on November 10, 2015 . The primary reasons for the business combination were to help drive our ecoATM business to profitability, provide margin and revenue uplift opportunities, and leverage a direct-to-consumer channel for collected devices. We accounted for the purchase of Gazelle as a business combination. Costs related to this acquisition of approximately $0.3 million were expensed during the fourth quarter of 2015 and are included within general and administrative expenses in our Consolidated Statements of Comprehensive Income . The following table shows the consideration transferred and the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed and the resultant purchase price allocation. Dollars in thousands November 10, 2015 Total consideration transferred $ 17,980 Assets acquired: Accounts receivable $ 67 Prepaid expenses and other current assets 3,963 Property and equipment 252 Intangible assets 16,000 Total assets acquired 20,282 Liabilities assumed: Deferred revenue (750 ) Deferred tax liabilities (563 ) Total liabilities assumed (1,313 ) Total net assets acquired $ 18,969 Bargain purchase gain $ 989 The assets acquired and liabilities assumed, as well as the results of operations from the date of the acquisition, are included within our ecoATM segment. The purchase priced allocation resulted in the recognition of a gain on bargain purchase of approximately $1.0 million , which was included within other, net in our Consolidated Statements of Comprehensive Income . The gain on bargain purchase is primarily the result of acquiring certain assets of Gazelle, including the Gazelle trade name, in a transaction under which the previous investors were motivated to sell due to short-term liquidity concerns. Acquired identifiable intangible assets and their estimated useful life in years are as follows: Dollars in thousands Purchase Price Estimated Useful Life in Years Trade name $ 14,000 10 Developed technology $ 2,000 3 The following table shows the revenue and operating loss included in our Consolidated Statements of Comprehensive Income resulting from the acquisition of Gazelle since the closing date, including the amortization for acquired intangibles which are included in our ecoATM segment: Year Ended Dollars in thousands December 31, 2015 Revenue $ 13,269 Operating loss $ 948 Pro forma information The following unaudited pro forma information represents the results of operations for Outerwall Inc. and includes the Gazelle business acquired as if the acquisition was consummated as of January 1, 2014. Years Ended December 31, (Unaudited) Dollars in thousands 2015 2014 Pro-forma revenue $ 2,264,467 $ 2,378,508 Pro-forma income from continuing operations $ 38,524 $ 114,641 The unaudited pro forma results have been adjusted with respect to certain aspects of our acquisition of Gazelle to reflect: • changes in assets to record their acquisition date fair values and the resulting changes in amortization; • adjustments for the bargain purchase gain and costs related to the acquisition; and • the income tax impact of the pro forma adjustments at a combined federal and state statutory rate of 37.5% . The unaudited pro forma results do not reflect future events that may occur after the acquisition, including, but not limited to, the anticipated realization of ongoing savings from operating synergies in subsequent periods. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities [Abstract] | |
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities | Note 4: Prepaid Expenses and Other Current Assets and Other Accrued Liabilities Prepaid expenses and other current assets December 31, Dollars in thousands 2015 2014 Spare parts $ 9,780 $ 13,643 Licenses 6,394 5,881 Electronic devices inventory 7,846 5,259 Income taxes receivable 9,517 95 Prepaid rent 1,043 1,446 DVD cases and labels 1,371 1,330 Other 15,417 12,165 Total prepaid and other current assets $ 51,368 $ 39,819 Other accrued liabilities December 31, Dollars in thousands 2015 2014 Payroll related expenses $ 40,676 $ 33,343 Studio revenue share and other content related expenses 28,964 23,226 Business taxes 16,080 21,629 Insurance 13,594 9,615 Deferred revenue 11,201 6,995 Income taxes payable 16 9,463 Accrued interest expense 6,913 6,974 Accrued early lease termination and sublease expenses 4,991 — Service contract provider expenses 4,070 4,191 Deferred rent expense 1,728 6,162 Other 13,204 15,528 Total other accrued liabilities $ 141,437 $ 137,126 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 5: Property and Equipment December 31, Dollars in thousands 2015 2014 Kiosks and components $ 1,163,210 $ 1,165,925 Computers, servers, and software 193,507 200,915 Leasehold improvements 22,663 29,625 Office furniture and equipment 7,047 9,218 Vehicles 5,118 6,234 Property and equipment, at cost 1,391,545 1,411,917 Accumulated depreciation and amortization (1,075,532 ) (983,449 ) Property and equipment, net $ 316,013 $ 428,468 During 2015 we recognized: • $5.0 million of accelerated depreciation as a result of our decision to discontinue operating SAMPLE it. See Note 14: Business Segments and Enterprise-Wide Information for additional information; and • $7.4 million of impairment charges in connection with our early lease termination. See Note 11: Restructuring for additional information. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 6: Goodwill and Other Intangible Assets Goodwill 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. During the three months ended June 30, 2015, it became evident that revenue and profitability trends in our ecoATM reporting unit were not being achieved as expected. For example collection rates, revenue and profitability on a per kiosk basis experienced declines versus prior periods and expected seasonal trends. As a result, we revised our internal expectations for future revenue growth and profitability lower than our previous estimates. This is primarily driven by certain challenges in an increasingly competitive industry which impact the per kiosk device collection, revenue and profitability expectations and the timing and installation of kiosks. Further, while these competitive challenges grew more acute during the second quarter, we also experienced the loss of a key executive at ecoATM. This led to an indication in the second quarter of 2015 that ecoATM’s fair value was more likely than not below its carrying value. As a result, we performed the first step of the goodwill impairment test with the assistance of a third-party valuation specialist. The first step of the impairment test was completed by comparing the carrying value of ecoATM, including goodwill, to its fair value determined using a weighted combination of a discounted cash flow (“DCF”) income based approach and a guideline public company market based approach. The DCF methodology requires significant judgment in selecting appropriate inputs including the risk adjusted market cost of capital for the discount rate, the terminal growth rate and projections of future cash flows, all of which are inherently uncertain. The guideline public company method involves significant judgment in selecting the appropriate inputs including the peer company group, the selection of relevant multiples and the determination of a reasonable control premium. Due to these significant judgments, the fair value determined in connection with the goodwill impairment test may not necessarily be indicative of the actual value that would be recognized in a future transaction. Completion of the first step of the impairment test determined that the carrying amount of ecoATM exceeded its fair value and that the second step of the impairment test needed to be performed. Under the second step of the impairment test, we completed the process of estimating the fair value of ecoATM’s assets and liabilities, including intangible assets consisting of developed technology, trade name and covenants not to compete for the purpose of deriving an estimate of the implied fair value of goodwill. The estimate of the implied fair value of goodwill was then compared to the recorded goodwill to determine the amount of the impairment. Significant assumptions used in measuring the value of these assets and liabilities included the discount rates and obsolescence rates used in valuing the intangible assets, and replacement costs for valuing the tangible assets. The inputs and assumptions used in our goodwill impairment test are classified as Level 3 inputs within the fair value hierarchy. Based on the result of the second step of the goodwill impairment analysis, we recognized a non-cash, non-tax deductible charge for goodwill impairment of $85.9 million related to our ecoATM business segment in the second quarter of 2015. As a result of the impairment recorded, the estimated fair value of the ecoATM reporting unit equaled its carrying value as of June 30, 2015. Gross amount of goodwill and accumulated impairment charges that we have recorded are as follows: Dollars in thousands Goodwill $ 559,307 Accumulated impairment losses (85,890 ) Net goodwill at December 31, 2015 $ 473,417 Goodwill by Segment A reconciliation of the beginning and ending carrying amounts of goodwill by segment is as follows: Dollars in thousands December 31, Goodwill Impairment December 31, Redbox $ 138,743 $ — $ 138,743 Coinstar 156,351 — 156,351 ecoATM 264,213 (85,890 ) 178,323 Total goodwill $ 559,307 $ (85,890 ) $ 473,417 We elected to by-pass the qualitative assessment and performed the annual goodwill impairment test based on a quantitative analysis as of November 30, 2015. We estimated the fair value of our goodwill bearing reporting units using both the income and market approaches and reconciled these approaches to our enterprise market capitalization as of November 30, considering a reasonable control premium. 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 additional goodwill impairment in 2015. Subsequent to our testing date of November 30, we also considered the change in our market capitalization between the measurement date and December 31, 2015 and subsequent to our fiscal year end. Considering factors such as the average price of our stock during 2015, in conjunction with the other methodologies and factors noted above, we determined that the decrease in our market capitalization did not change our conclusions made as of the measurement date. The acquired assets and liabilities of Gazelle (See Note 3: Business Combinations for further information), are included in the carrying value of our ecoATM reporting unit. The estimate of ecoATM's fair value as of November 30, 2015, included the expected increase in our estimated future cash flows from the Gazelle acquisition. The expected future cash flows of our ecoATM reporting unit include key assumptions with inherent uncertainty which may change in future periods and may have a negative effect on the fair value resulting in potential future impairments, the most significant of which is our estimate of future cash flows predicated on estimated growth in kiosks, revenue and profitability measures. Additionally, fair value may be negatively impacted by changes in our strategy related to the ecoATM reporting unit and factors outside of our control such as increased competition from companies whose primary business consists of the purchase of used electronics and with companies in other businesses who also have buyback programs. Excluding the impact of Gazelle on the fair value and carrying value of the ecoATM reporting unit, there have been no significant changes in our expectations for the ecoATM reporting unit from the June 30, 2015 valuation date, when the estimated fair value of the ecoATM reporting unit equaled its carrying value, to the November 30, 2015 annual measurement date, that indicated the carrying value of the ecoATM reporting unit exceeded its fair value as of November 30, 2015. 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 2015 2014 Retailer relationships 5 - 10 years $ 53,295 $ 53,295 Accumulated amortization (27,212 ) (23,200 ) Retailer relationships, net 26,083 30,095 Developed technology 3 - 5 years 36,000 34,000 Accumulated amortization (16,544 ) (9,633 ) Developed technology, net 19,456 24,367 Trade names 5 - 10 years 20,000 6,000 Accumulated amortization (3,133 ) (1,700 ) Trade names, net 16,867 4,300 Other 1 - 40 years 10,800 10,800 Accumulated amortization (6,109 ) (4,871 ) Other, net 4,691 5,929 Total intangible assets, net $ 67,097 $ 64,691 Amortization expense was as follows: Year Ended December 31, Dollars in thousands 2015 2014 2013 Retailer relationships $ 4,012 $ 5,432 $ 6,250 Developed technology 6,911 6,800 2,833 Trade names 1,433 1,200 500 Other 1,238 1,260 1,350 Total amortization of intangible assets $ 13,594 $ 14,692 $ 10,933 Less: amortization included in discontinued operations (44 ) (38 ) (26 ) Total amortization of intangible assets from continuing operations $ 13,550 $ 14,654 $ 10,907 Assuming no future impairment, the expected future amortization as of December 31, 2015 , is as follows: Dollars in thousands Retailer Relationships Developed Technology Trade Names Other Total 2016 $ 4,012 $ 7,467 $ 2,600 $ 1,081 $ 15,160 2017 4,012 7,467 2,600 1,081 15,160 2018 4,012 4,522 2,100 964 11,598 2019 4,012 — 1,400 801 6,213 2020 4,012 — 1,400 407 5,819 Thereafter 6,023 — 6,767 357 13,147 Total expected amortization $ 26,083 $ 19,456 $ 16,867 $ 4,691 $ 67,097 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Note 7: Equity Method Investments 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 governed 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 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, 2015 , our $0.7 million investment in Pursuant Health, Inc., formerly known as SoloHealth, Inc., representing approximately 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 2015 2014 2013 Gain on previously held equity interest on ecoATM $ — $ — $ 68,376 Proportionate share of net loss of equity method investees: Joint Venture — (25,793 ) (42,660 ) Pursuant Health and ecoATM (800 ) (530 ) (3,313 ) Total proportionate share of net loss of equity method investees (800 ) (26,323 ) (45,973 ) Amortization of difference in carrying amount and underlying equity in Joint Venture — (2,411 ) (2,475 ) Total income (loss) from equity method investments $ (800 ) $ (28,734 ) $ 19,928 A summary of financial information for our equity method investees in the aggregate, as provided to us by the investees, is as follows: Balance Sheets (1) December 31, Dollars in thousands 2015 2014 Current assets $ 3,457 $ 3,408 Noncurrent assets $ 13,394 $ 20,376 Current liabilities $ 5,888 $ 7,321 Long-term liabilities $ 22,811 $ 18,754 (1) Represents Pursuant Health, Inc. only. Statement of Operations Year Ended December 31, Dollars in thousands 2015 2014 2013 Revenue $ 7,389 $ 29,963 $ 15,824 Cost of sales and service $ 10,129 $ 68,732 $ 25,092 Net loss from continuing operations $ 6,107 $ 140,919 $ 134,911 |
Debt and Other Long-Term Liabil
Debt and Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Other Long-Term Liabilities | Note 8: 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 2019 Notes 2021 Notes Term Loans Revolving Line of Credit As of December 31, 2015: Principal $ 350,000 $ 258,908 $ 136,875 $ 140,500 $ 886,283 Discount (3,275 ) (3,029 ) (260 ) — (6,564 ) Total 346,725 255,879 136,615 140,500 879,719 $ 5,889 $ 9,412 $ 19,477 $ 914,497 Less: current portion — — (13,125 ) — (13,125 ) (4,006 ) — — (17,131 ) Total long-term portion $ 346,725 $ 255,879 $ 123,490 $ 140,500 $ 866,594 $ 1,883 $ 9,412 $ 19,477 $ 897,366 Unamortized deferred financing fees (1) $ 495 $ 1,054 $ — $ 2,300 $ 3,849 $ 3,849 Debt Other Liabilities Total Senior Notes Credit Facility Total Debt Capital Lease Obligations Asset retirement obligations Other long-term liabilities Dollars in thousands 2019 Notes 2021 Notes 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 (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, 2015 2014 2013 Cash interest expense $ 45,507 $ 41,562 $ 25,289 Non-cash interest expense: Amortization of debt discount 1,731 2,606 4,674 Amortization of deferred financing fees 1,030 1,510 1,720 Other — — (550 ) Total non-cash interest expense 2,761 4,116 5,844 Total cash and non-cash interest expense 48,268 45,678 31,133 (Gain) loss from early extinguishment of debt (5,854 ) 2,018 6,013 Total interest expense $ 42,414 $ 47,696 $ 37,146 2019 Notes 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 “2019 Notes”) 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 2019 Notes. As of December 31, 2015 , we were in compliance with the covenants of the related indenture. 2021 Notes 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 "2021 Notes") 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 2021 Notes. During the second quarter of 2015, we registered the 2021 Notes and related guarantees under the Securities Act of 1933, as amended (the “Securities Act”) to allow holders to exchange the notes and related guarantees for the same principal amount of a new issue and related guarantees (collectively, the “Exchange Notes”) with substantially identical terms, except that the Exchange Notes are generally freely transferable under the Securities Act. The full principal amount of the 2021 Notes was exchanged for the Exchange Notes. On December 15, 2015 , we repurchased 41,092 Notes, or $41.1 million in face value of Notes, for $34.6 million in cash. The gain from early extinguishment of these Notes was approximately $5.9 million and is included in Interest expense, net on our Consolidated Statements of Comprehensive Income. As of December 31, 2015 , we were in compliance with the covenants of the related indenture. 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, we recorded a loss on the extinguishment of the previous credit agreement of $1.7 million in 2014 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”). T he interest rate on amounts outstanding under the Credit Facility was 2.29% and 1.92% as of December 31, 2015 and December 31, 2014 , respectively. As of December 31, 2015 , we were in compliance with the covenants of the Credit Facility. The Amended and Restated Credit Agreement requires principal amortization payments under the Term Loan as follows: Dollars in thousands Repayment Amount 2016 $ 13,125 2017 15,000 2018 18,750 2019 90,000 Total $ 136,875 Convertible Debt On September 2, 2014, our 4.0% Convertible Senior Notes (the “Convertible Notes”) matured. The Convertible Notes were convertible as of December 31, 2013. 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, 2015 2014 Tenant improvement and deferred rent and other $ 12,592 $ 13,012 Unrecognized tax benefit 6,885 4,639 Total other long-term liabilities $ 19,477 $ 17,651 |
Repurchases of Common Stock
Repurchases of Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Class of Stock Disclosures [Abstract] | |
Repurchases Of Common Stock | Note 9: Repurchases of Common Stock Board Authorization On February 3, 2015, our Board of Directors approved an additional stock repurchase program of up to $250.0 million of our common stock plus the cash proceeds received from the exercise of stock options by our executives, non-employee directors and employees. 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 2015 authorized stock repurchase balance and repurchases made during the past three years: Dollars in thousands Board Authorization Authorized repurchase - as of January 1, 2015 $ 163,655 Additional board authorization 250,000 Proceeds from the exercise of stock options 2,552 Repurchase of common stock from open market (159,800 ) Authorized repurchase - as of December 31, 2015 $ 256,407 Repurchases made in the year ended December 31, Number of Shares Repurchased Average Price per Share (in dollars) Total Purchase Price (in thousands) 2015 2,514,139 $ 63.56 $ 159,800 2014 Tender offer (1) 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 Total 13,745,799 $ 65.20 $ 896,175 (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. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Note 10: 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 December 31, 2015 Unissued common stock reserved for issuance under all plans 1,034 Shares available for future grants 979 Certain information regarding our share-based payments is as follows: Year Ended December 31, Dollars in thousands except per share data 2015 2014 2013 Share-based payments expense: Share-based compensation - stock options $ 293 $ 803 $ 1,566 Share-based compensation - restricted stock 12,102 11,214 10,504 Share-based payments for content arrangements 4,982 1,367 4,761 Total share-based payments expense $ 17,377 $ 13,384 $ 16,831 Tax benefit on share-based payments expense $ 6,736 $ 5,134 $ 6,392 Per share weighted average grant date fair value of stock options granted $ — $ — $ 53.90 Per share weighted average grant date fair value of restricted stock granted $ 66.67 $ 71.37 $ 53.94 Total intrinsic value of stock options exercised $ 1,061 $ 3,263 $ 10,567 Grant date fair value of restricted stock vested $ 12,631 $ 13,036 $ 12,641 December 31, 2015 Dollars in thousands Unrecognized Share-Based Payments Expense Weighted-Average Remaining Life Unrecognized share-based payments expense: Share-based compensation - stock options $ 149 0.9 years Share-based compensation - restricted stock 19,032 2.2 years Share-based payments for content arrangements 1,090 0.8 years Total unrecognized share-based payments expense $ 20,271 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 2015 : Shares in thousands Options Weighted Average Exercise Price Outstanding, December 31, 2014 128 $ 52.59 Granted — $ — Exercised (49 ) $ 52.10 Canceled, expired, or forfeited (24 ) $ 53.99 Outstanding, December 31, 2015 55 $ 52.40 Certain information regarding stock options outstanding as of December 31, 2015 , is as follows: Options Shares and intrinsic value in thousands Outstanding Exercisable Number 55 39 Weighted average per share exercise price $ 52.40 $ 51.67 Aggregate intrinsic value $ 35 $ 35 Weighted average remaining contractual term (in years) 6.33 6.09 Restricted stock and performance based restricted stock awards Restricted stock awards are granted to eligible executives, non-employee directors and employees. 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. We estimate forfeitures for restricted stock awards and recognize share-based compensation expense for only those awards expected to vest. Awards of performance-based restricted stock made prior to 2013, once earned, vest in equal installments over three years f rom 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. The following table presents a summary of restricted stock award activity for 2015 : Shares in thousands Restricted Stock Awards Weighted Average Grant Date Fair Value Non-vested, December 31, 2014 609 $ 62.35 Granted 352 $ 66.67 Vested (188 ) $ 59.09 Forfeited (217 ) $ 65.26 Non-vested, December 31, 2015 556 $ 65.86 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 16: 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, 2015 , is as follows: Whole shares Granted Vested Unvested Sony (1) 243,348 243,348 — Paramount (2)(3) 350,000 350,000 — (1) Includes 25,000 shares granted and fully vested in the fourth quarter of 2015 due to a one-year contract extension executed in 2015. (2) Includes 50,000 shares granted and fully vested in the first quarter of 2015 due to a one-year contract extension executed in 2015. (3) Includes 95,000 shares that vested on January 1, 2015. On October 16, 2015, Paramount elected to exercise its option to extend our existing content license agreement. This required us to issue 50,000 shares of additional restricted stock to Paramount during the first quarter of 2016, which we issued on January 4, 2016. 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 is recognized net of forfeitures, and cash payments are made in accordance with the awards' vesting schedule, generally on a monthly basis. We recognized $4.4 million , $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, 2015 , 2014 and 2013 , respectively. The expected future recognition of expense associated with the rights to receive cash as of December 31, 2015 is as follows: Dollars in thousands Expected Expense 2016 $ 1,868 2017 284 Remaining total expected expense $ 2,152 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Note 11: Restructuring 2015 Restructuring During the first quarter of 2015, we recorded restructuring charges arising from the following activities: • Discontinuing our Redbox operations in Canada. The disposal was completed on March 31, 2015. See Note 12: Discontinued Operations for further information; • Reducing the size of our Redbox headquarters facility in Oakbrook Terrace, Illinois through early termination of operating leases for certain floors. We ceased using the office space on March 31, 2015, and the effective date of the early termination is July 31, 2016. Prior to exercising our early termination option, the leases had been scheduled to expire in July 2021; and • Implementing actions to further align costs with revenues in our continuing operations primarily through workforce reductions across the Company and subleasing a floor of a corporate facility. The restructuring liability for this workforce reduction was recorded in the first quarter of 2015 in accordance with ASC 420, consistent with management's approval and commitment to the restructuring plan in the first quarter of 2015, and the communication of those plan details to affected employees within that quarter. During the fourth quarter of 2015, we recorded restructuring charges arising from the following additional activities: • Discontinuing our SAMPLE it concept, which is recorded in our All Other reporting category. See Note 14: Business Segments and Enterprise-Wide Information for additional information; and • Continuing to implement actions to further align costs with revenues in our continuing operations primarily through workforce reductions across the Company, a one-time payment to settle an outstanding purchase commitment, and vacating a floor of a corporate facility. See Note 16: Commitments and Contingencies for further information related to the purchase commitment. We recorded the restructuring liabilities in the fourth quarter of 2015 under ASC 712, consistent with management's approval and commitment to the restructuring plan. We had a substantive plan in place, for purposes of ASC 712, based on the fact that the termination benefits to be paid to our employees were similar to the termination benefits historically paid by us, thereby enabling employees to determine the type and amount of benefits they would receive if they were involuntarily terminated. The restructuring liability represented our obligation related to our employees' rights to receive compensation attributable to services already rendered, which rights had already vested or accumulated. Due to the fact that management had approved and committed to the restructuring plan and based on historical experience, payment of the severance was probable and the amount was reasonably estimated. We do not expect significant future restructuring charges related to our 2015 restructuring activities. The total amount incurred for restructuring, exclusive of asset impairments incurred by reportable segment (on an allocated basis) and expense type is as follows: Year Ended December 31, Dollars in thousands 2015 Redbox Severance $ 4,236 Lease termination and related costs (excluding related asset impairments) 4,958 Purchase commitment settlement costs 7,021 Total Redbox restructuring costs 16,215 Coinstar Severance 492 Lease termination and related costs (excluding related asset impairments) 100 Purchase commitment settlement costs 1,369 Total Coinstar restructuring costs 1,961 ecoATM Severance 602 Lease termination and related costs (excluding related asset impairments) — Purchase commitment settlement costs 85 Total ecoATM restructuring costs 687 All Other Severance 822 Lease termination and related costs (excluding related asset impairments) 2 Purchase commitment settlement costs 26 Total All Other restructuring costs 850 Total restructuring costs in continuing operations 19,713 Restructuring costs in discontinued operations 522 Total restructuring costs $ 20,235 During 2015, we recognized $27.7 million in charges in connection with our restructuring and related costs including $7.4 million in impairments of lease related assets, and $20.2 million in restructuring costs, which include severance, net lease termination costs and a one-time payment to settle an outstanding purchase commitment. Year Ended December 31, Dollars in thousands 2015 Restructuring costs $ 20,235 Impairment of lease related assets (see Note 5) 7,440 Total restructuring and related costs 27,675 Less: restructuring costs included in discontinued operations (522 ) Restructuring and related costs from continuing operations $ 27,153 A reconciliation of the beginning and ending liability balance by expense type is as follows: Dollars in thousands Severance Expense Lease Termination Costs Other Beginning Balance - January 1, 2015 $ — $ — $ — Costs charged to expense (1) 6,284 5,138 8,813 Reclassification of deferred balances (2) — 5,260 — Costs paid or otherwise settled (4,899 ) (5,407 ) (8,813 ) Ending Balance - December 31, 2015 $ 1,385 $ 4,991 $ — (1) Other includes an $8.5 million one-time payment to settle an outstanding purchase commitment. (2) Deferred rent liabilities related to the early lease termination that were reclassified to present the outstanding liability related to the terminated leases. 2013 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. The restructuring liabilities for the workforce reductions were recorded in the fourth quarter of 2013 and in 2014 in accordance with ASC 420, consistent with management's approval and commitment to the restructuring plan, and the communication of plan details to affected employees. The total amount incurred for restructuring, exclusive of asset impairments 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 $ 4,305 $ 534 $ 3,771 Coinstar Severance 747 23 724 Total restructuring costs in continuing operations 5,052 557 4,495 Restructuring costs in discontinued operations 2,899 590 2,309 Total restructuring costs $ 7,951 $ 1,147 $ 6,804 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Note 12: Discontinued Operations 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. This represents a strategic shift which has a major effect on our operations as it represents a significant geographical area for our Redbox segment and the losses generated were significant to our total operations. 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 our financial statements and the remaining value of the content library and certain capitalized property and equipment consisting primarily of installation costs were amortized over the wind-down period ending March 31, 2015. 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 2015 2014 2013 Redbox Canada revenue $ 1,972 $ 11,417 $ 6,816 Certain new ventures revenue — 100 4,399 Total revenue $ 1,972 $ 11,517 $ 11,215 Redbox Canada loss before income tax $ (13,605 ) $ (23,707 ) $ (19,830 ) Certain new ventures loss before income tax — (1,259 ) (54,395 ) Total loss before income tax: (13,605 ) (24,966 ) (74,225 ) Redbox Canada income tax benefit 8,496 6,416 5,233 Certain new ventures income tax benefit — 491 21,096 Total income tax benefit 8,496 6,907 26,329 Redbox Canada loss, net of tax (5,109 ) (17,291 ) (14,597 ) Certain new ventures loss, net of tax — (768 ) (33,299 ) Total loss from discontinued operations, net of tax $ (5,109 ) $ (18,059 ) $ (47,896 ) 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 2015 2014 2013 Major classes of line items constituting pretax loss of discontinued operations: Revenue $ 1,972 $ 11,417 $ 6,816 Direct operating 4,533 20,027 18,278 Marketing 112 2,947 2,175 Research and development — — 2 General and administrative 117 1,078 3,088 Restructuring and related costs 522 — — Depreciation and other 5,857 7,354 2,760 Amortization of intangible assets 44 38 26 Other expense, net (4,392 ) (3,680 ) (317 ) Pretax loss of discontinued operations related to major classes of pretax loss (13,605 ) (23,707 ) (19,830 ) Income tax benefit (1) 8,496 6,416 5,233 Net loss on discontinued operations $ (5,109 ) $ (17,291 ) $ (14,597 ) (1) The income tax benefit for 2015 includes a benefit on the rate differential between the U.S. and Canada. Significant operating and investing cash flows of Redbox Canada were as follows: Year Ended December 31, Dollars in thousands 2015 2014 2013 Net loss on discontinued operations $ (5,109 ) $ (17,291 ) $ (14,597 ) Adjustments to reconcile net loss to net cash flows from operating activities: Depreciation and amortization 5,901 7,392 2,786 Content library 3,328 (787 ) (410 ) Prepaid and other current assets 1,329 (293 ) (516 ) Accounts payable (2,663 ) 627 644 Accrued payables to retailers (155 ) (175 ) 247 Other accrued liabilities (806 ) (122 ) 506 Net cash flows from operating activities $ 1,825 $ (10,649 ) $ (11,340 ) Investing activities: Purchase of property, plant and equipment (292 ) (5,494 ) (9,330 ) Total cash flows used in investing activities $ (292 ) $ (5,494 ) $ (9,330 ) 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 11: Restructuring ) . 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, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 13: Earnings Per Share Beginning in the first quarter of 2015, we began applying the two-class method of calculating basic and diluted earnings per share (the “Two-Class Method”) as it became significantly more dilutive than the previously applied treasury stock method as a result of stock repurchases increasing the average number of unvested restricted awards as a percentage of total common shares outstanding. The Two-Class Method is an earnings allocation formula that treats a participating security, as having rights to earnings that otherwise would have been available to common shareholders and assumes all earnings for the period are distributed. Our unvested service-based restricted stock awards granted are participating securities as they entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. Our calculation of basic and diluted earnings per share is as follows: Year Ended December 31, In thousands, except per share data 2015 2014 2013 Numerator Income from continuing operations $ 49,446 $ 124,677 $ 222,688 Loss from discontinued operations, net of tax (5,109 ) (18,059 ) (47,896 ) Net income $ 44,337 $ 106,618 $ 174,792 Income from continuing operations $ 49,446 $ 124,677 $ 222,688 Dividends and undistributed income allocated to participating shares (1,329 ) (3,929 ) (5,473 ) Income from continuing operations to common shares - basic 48,117 120,748 217,215 Effect of reallocating undistributed income from continuing operations to participating shares 1 58 179 Income from continuing operations to common shares - diluted $ 48,118 $ 120,806 $ 217,394 Denominator Weighted average common shares - basic 17,467 20,192 27,216 Dilutive effect of share-based payment awards 20 81 235 Dilutive effect of convertible debt — 230 718 Weighted average common shares - diluted (1) 17,487 20,503 28,169 Basic earnings (loss) per common share: Continuing operations $ 2.75 $ 5.98 $ 7.98 Discontinued operations (0.29 ) (0.89 ) (1.76 ) Basic earnings per common share $ 2.46 $ 5.09 $ 6.22 Diluted earnings (loss) per common share: Continuing operations $ 2.75 $ 5.89 $ 7.72 Discontinued operations (0.29 ) (0.88 ) (1.70 ) Diluted earnings per common share $ 2.46 $ 5.01 $ 6.02 Stock options and share-based awards not included in diluted EPS calculation because their effect would have be antidilutive 7 11 13 (1) Participating securities were included in the calculation of diluted earnings per share using the two-class method, as this calculation was more dilutive than the calculation using the treasury stock method. |
Business Segments and Enterpris
Business Segments and Enterprise-Wide Information | 12 Months Ended |
Dec. 31, 2015 | |
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 (loss) before depreciation, amortization and other, and share-based compensation granted to executives, non-employee directors and employees (“segment operating income (loss)”). Segment operating income (loss) 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 We regularly assess the performance of our concepts to determine whether continued funding or other alternatives are appropriate and as a result, we discontinued operating SAMPLE it in the fourth quarter of 2015. As SAMPLE it did not represent a major component of our operations or financial results, the results of SAMPLE it did not qualify to be reported as a discontinued operation and remain in our All Other reporting category. 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 are now included in our All Other reporting 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. See Note 6: Goodwill and Other Intangible Assets for further information. Results of operations for Gazelle from the acquisition date, November 10, 2015, are included in our ecoATM segment. See Note 3: Business Combinations for further information. 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. 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 our All Other reporting category, which we added during the first quarter of 2015. 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 our All Other reporting category. 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, 2015 Redbox Coinstar ecoATM All Other Corporate Unallocated Total Revenue $ 1,760,899 $ 318,611 $ 113,558 $ 143 $ — $ 2,193,211 Expenses: Direct operating 1,213,744 159,211 113,141 4,431 2,561 1,493,088 Marketing 19,804 5,566 8,481 1,128 695 35,674 Research and development — — 5,545 (84 ) 1,737 7,198 General and administrative 129,013 31,561 10,875 7,188 11,756 190,393 Restructuring and related costs (Note 11) 23,540 2,076 687 850 — 27,153 Goodwill impairment (Note 6) — — 85,890 — — 85,890 Segment operating income (loss) 374,798 120,197 (111,061 ) (13,370 ) (16,749 ) 353,815 Less: depreciation and amortization (118,902 ) (31,871 ) (26,382 ) (7,785 ) — (184,940 ) Operating income (loss) 255,896 88,326 (137,443 ) (21,155 ) (16,749 ) 168,875 Loss from equity method investments, net — — — — (800 ) (800 ) Interest expense, net — — — — (42,353 ) (42,353 ) Other, net — — — — (2,657 ) (2,657 ) Income (loss) from continuing operations before income taxes $ 255,896 $ 88,326 $ (137,443 ) $ (21,155 ) $ (62,559 ) $ 123,065 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 1,318,509 161,214 92,182 2,821 6,585 1,581,311 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 135,554 26,989 12,773 3,522 11,658 190,496 Restructuring and related costs (Note 11) 534 23 — — — 557 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) from continuing operations 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 160,863 25,220 7,868 7,683 14,164 215,798 Restructuring and related costs (Note 11) 3,771 724 — — — 4,495 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 Loss from equity method investments, net — — — — 19,928 19,928 Interest expense, net — — — — (32,807 ) (32,807 ) Other, net — — — — (3,599 ) (3,599 ) Income (loss) from continuing operations before income taxes $ 256,951 $ 68,585 $ (13,102 ) $ (12,824 ) $ (37,212 ) $ 262,398 Significant Retailer Relationships The following retailers accounted for 10% or more of our consolidated revenue: Year Ended December 31, 2015 2014 2013 Wal-Mart Stores Inc. 16.6 % 15.5 % 15.2 % Walgreen Co. 13.4 % 13.8 % 14.7 % The Kroger Company 9.8 % 9.8 % 10.0 % 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 2015 2014 2013 U.S. $ 2,145,887 $ 2,242,753 $ 2,254,790 All other 47,324 48,833 44,995 Total revenue $ 2,193,211 $ 2,291,586 $ 2,299,785 Long-lived assets by geographic location were as follows: Years Ended December 31, Dollars in thousands 2015 2014 2013 U.S. $ 848,450 $ 1,027,271 $ 1,140,224 All other 14,133 33,426 38,406 Total long-lived assets $ 862,583 $ 1,060,697 $ 1,178,630 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 15: 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, 2015 Level 1 Level 2 Level 3 Money market demand accounts and investment grade fixed income securities $ 2,743 $ — $ — Fair Value at December 31, 2014 Level 1 Level 2 Level 3 Money market demand accounts and investment grade fixed income securities $ 916 $ — $ — 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. For more information regarding the goodwill impairment charge recognized in 2015, and the related fair value, see Note 6: Goodwill and Other Intangible Assets . 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 2019 Notes and 2021 Notes outstanding using quoted market prices by independent dealers. The estimated fair value of our 2019 Notes and 2021 Notes was approximately $312.0 million and $213.0 million at December 31, 2015 , and $350.0 million and $300.0 million at December 31, 2014 , respectively. The fair value estimate of our senior unsecured notes falls under Level 2 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, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16: 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 . We lease our Redbox facility in Oakbrook Terrace, Illinois under an operating lease that expires on July 31, 2021 . Under certain circumstances, we have the ability to extend the lease for a five -year period, rent additional office space under a right of first offer and refusal and have the option to terminate the lease in July 2016. Under the terms of the lease, we are responsible for certain tax, construction and operating costs associated with the rented space. We early terminated our operating lease of certain floors of our Redbox headquarters and recognized the fair value of the ongoing lease payments and other related costs through the effective date of termination, July 31, 2016, as of the cease use date, March 31, 2015. See Note 11: Restructuring for additional information; We entered into a new operating lease of 16,085 square feet of office space for Redbox in Woodland Hills, California which expires May 31, 2022 . We lease our ecoATM facility in San Diego, California. The lease for this space will expire on August 10, 2025 . Additionally, with the acquisition of Gazelle in the fourth quarter of 2015, we acquired facilities in Boston, Massachusetts and Louisville, Kentucky. The leases for these spaces will expire on November 30, 2020 and February 28, 2018 , respectively. Rent expense, net of sublease income under our operating lease agreements was $18.0 million , $16.8 million and $12.3 million during 2015 , 2014 and 2013 , respectively. Capital Leases We lease automobiles and computer equipment under capital leases expiring at various dates through 2022. We assess these leases as they come due as to whether we should purchase, enter into new capital leases, or enter into operating 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, 2015 2014 Gross property and equipment $ 26,394 $ 41,336 Accumulated depreciation (20,735 ) (26,831 ) Net property and equipment $ 5,659 $ 14,505 As of December 31, 2015 , our future minimum lease payments, net of sublease income are as follows: Dollars in thousands Capital Leases Operating Leases (1) 2016 $ 4,144 $ 18,969 2017 1,011 13,445 2018 429 10,215 2019 305 7,986 2020 209 4,936 Thereafter 123 7,132 Total minimum lease commitments 6,221 62,683 Less: sublease income — (1,332 ) Total minimum lease commitments, net 6,221 $ 61,351 Less: amounts representing interest (332 ) Present value of capital lease obligations 5,889 Less: Current portion of capital lease obligations (4,006 ) Long-term portion of capital lease obligations $ 1,883 (1) Includes all operating leases having an initial or remaining non-cancelable lease term in excess of one year. Purchase Commitments 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 2015, 2014 and 2013 that reduced this commitment by $0.4 million , $2.1 million and $7.1 million , respectively. During the fourth quarter of 2015, we made a one-time payment of $8.5 million in cash to satisfy all outstanding obligations related to, and to effectively settle, our remaining purchase commitment of $15.4 million established by the manufacturing and services agreement. The one-time payment was recognized as restructuring and related costs in our Consolidated Statements of Comprehensive Income . We have entered into certain miscellaneous purchase agreements, primarily related to purchases of equipment, which resulted in total purchase commitments of $24.5 million as of December 31, 2015 . Content License Agreements On January 21, 2016, Redbox entered into an amendment to the existing agreement with Universal Home Entertainment LLC (“Universal”), extending the agreement through December 31, 2017. See Note 21: Subsequent Events in our Notes to Consolidated Financial Statements for additional information. On October 16, 2015, Paramount elected to exercise its option to extend our existing content license agreement. This extended the license period through December 31, 2016, with no further options to renew, and required us to issue 50,000 shares of additional restricted stock to Paramount during the first quarter of 2016, which we issued on January 4, 2016. On July 14, 2015, Sony elected to exercise its option to extend our existing content license agreement. This extended the license period through September 30, 2016, with no further options to renew, and required us to issue 25,000 shares of additional restricted stock to Sony during the fourth quarter of 2015, which we issued on October 2, 2015. On June 5, 2015, Redbox entered into an amendment to the existing April 22, 2010, agreement with Twentieth Century Fox Home Entertainment LLC (“Fox”) that maintains a 28-day window on Blu-ray Disc and DVD titles through June 30, 2017, and includes a revenue sharing arrangement between Redbox and Fox. On March 26, 2015, we entered into a revenue sharing agreement with Warner Home Video, a division of Warner Bros. Home Entertainment Inc., (the “Warner Agreement”) under which Redbox agreed to license minimum quantities of theatrical and direct-to-video titles for rental through March 31, 2017. The Warner Agreement maintains a 28-day window on such titles. We have entered into certain license agreements to obtain content for movie and video game rentals. A summary of the estimated movie commitments in relation to these agreements as of December 31, 2015 , is presented in the following table: Dollars in thousands December 31, Total 2016 2017 Total estimated movie commitments (1) $ 448,718 $ 381,275 $ 67,443 (1) Subsequent to year end and not included in this table, Redbox entered into an amendment to the existing agreement with Universal, extending the agreement through December 31, 2017. See Note 21: Subsequent Events for additional information. General terms of our content license agreements with studios are as follows as of December 31, 2015 : Studio End Date Release Date Fox 6/30/2017 Delay (1) Sony 9/30/2016 Day & Date (2) Paramount 12/31/2016 Day & Date (2) Warner 3/31/2017 Delay (1) Lionsgate 9/30/2016 (3) Day & Date (2) Universal 12/31/2015 (4) Delay (1) (1) Content licensed under the agreement is available for rental after a certain number of days following the retail release. (2) Content licensed under the agreement is available for rental on the same day and date as the retail release. (3) Agreement extends the term of the arrangement automatically for an additional year under certain conditions. (4) Subsequent to year end, Redbox entered into an amendment to the existing agreement with Universal, extending the agreement through December 31, 2017. See Note 21: Subsequent Events for additional information. 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 December 31, Total 2016 2017 2018 Redbox $ 2,365 $ 1,711 $ 523 $ 131 Letters of Credit As of December 31, 2015 , we had five irrevocable standby letters of credit that totaled $6.5 million . These standby letters of credit, which expire at various times through November 2016 , are used to collateralize certain obligations to third parties. As of December 31, 2015 , 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. Oral argument was held November 10, 2015. The Appellate Court affirmed the trial court’s rulings on January 11, 2016. We continue to believe that the claims against us are without merit and intend to defend ourselves vigorously in this matter should plaintiff seek further appellate review. 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. 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, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Guarantor Subsidiaries | Note 17: Guarantor Subsidiaries Certain of our wholly-owned subsidiaries have, jointly and severally, fully and unconditionally guaranteed the 2019 Notes and 2021 Notes. Pursuant to SEC regulations, we have presented in columnar format the condensed consolidating financial information for Outerwall Inc., the guarantor subsidiaries on a combined basis, and all non-guarantor subsidiaries on a combined basis in the following tables: CONSOLIDATING BALANCE SHEETS As of December 31, 2015 (in thousands) Outerwall Inc. Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations and Consolidation Reclassifications Total Assets Current Assets: Cash and cash equivalents $ 160,167 $ 19,372 $ 43,010 $ — $ 222,549 Accounts receivable, net of allowances 3,983 33,269 1,212 — 38,464 Content library — 188,490 — — 188,490 Prepaid expenses and other current assets 17,720 33,049 599 — 51,368 Intercompany receivables 35,654 527,996 426 (564,076 ) — Total current assets 217,524 802,176 45,247 (564,076 ) 500,871 Property and equipment, net 97,659 204,081 14,273 — 316,013 Deferred income taxes — — 2,606 — 2,606 Goodwill and other intangible assets, net 249,703 290,811 — — 540,514 Other long-term assets 4,596 1,293 167 — 6,056 Investment in related parties 921,456 27,798 — (949,254 ) — Total assets $ 1,490,938 $ 1,326,159 $ 62,293 $ (1,513,330 ) $ 1,366,060 Liabilities and Stockholders’ Equity Current Liabilities: Accounts payable $ 16,127 $ 167,694 $ 189 $ — $ 184,010 Accrued payable to retailers 71,947 30,157 12,994 — 115,098 Other accrued liabilities 57,025 82,401 2,011 — 141,437 Current portion of long-term debt and other long-term liabilities 16,832 — 299 — 17,131 Intercompany payables 459,789 85,487 18,800 (564,076 ) — Total current liabilities 621,720 365,739 34,293 (564,076 ) 457,676 Long-term debt and other long-term liabilities 877,325 19,882 159 — 897,366 Deferred income taxes 13,965 19,083 44 — 33,092 Total liabilities 1,513,010 404,704 34,496 (564,076 ) 1,388,134 Commitments and contingencies Stockholders’ Equity: Preferred stock — — — — — Common stock 599,675 252,727 4,636 (371,875 ) 485,163 Treasury stock (1,151,063 ) — 3,000 (3,000 ) (1,151,063 ) Retained earnings 530,140 668,728 18,963 (574,379 ) 643,452 Accumulated other comprehensive income (loss) (824 ) — 1,198 — 374 Total stockholders’ equity (deficit) (22,072 ) 921,455 27,797 (949,254 ) (22,074 ) Total liabilities and stockholders’ equity $ 1,490,938 $ 1,326,159 $ 62,293 $ (1,513,330 ) $ 1,366,060 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 14,884 23,923 1,012 — 39,819 Intercompany receivables 40,762 467,181 — (507,943 ) — Total current assets 239,738 729,407 50,024 (507,943 ) 511,226 Property and equipment, net 133,923 263,412 31,133 — 428,468 Deferred income taxes — — 11,363 — 11,363 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 $ 1,547,277 $ 1,363,217 $ 92,855 $ (1,420,063 ) $ 1,583,286 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 Intercompany payables 309,932 121,015 76,996 (507,943 ) — Total current liabilities 471,810 391,788 96,810 (507,943 ) 452,465 Long-term debt and other long-term liabilities 949,588 22,946 1,135 — 973,669 Deferred income taxes 28,500 31,249 25 — 59,774 Total liabilities 1,449,898 445,983 97,970 (507,943 ) 1,485,908 Commitments and contingencies Stockholders’ Equity: 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 $ 1,547,277 $ 1,363,217 $ 92,855 $ (1,420,063 ) $ 1,583,286 CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, 2015 (in thousands) Outerwall Inc. Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations and Consolidation Reclassifications Total Revenue $ 271,430 $ 1,874,457 $ 47,324 $ — $ 2,193,211 Expenses: Direct operating 143,429 1,328,269 21,390 — 1,493,088 Marketing 6,485 28,916 273 — 35,674 Research and development (83 ) 7,281 — — 7,198 General and administrative 47,699 142,012 682 — 190,393 Restructuring and related costs 2,926 24,227 — — 27,153 Depreciation and other 32,643 134,522 4,225 — 171,390 Amortization of intangible assets 14 13,536 — — 13,550 Goodwill impairment — 85,890 — — 85,890 Total expenses 233,113 1,764,653 26,570 — 2,024,336 Operating income 38,317 109,804 20,754 — 168,875 Other income (expense), net: Loss from equity method investments, net (800 ) — — — (800 ) Interest income (expense) 30,177 (72,164 ) (366 ) — (42,353 ) Other, net 15,273 1,354 (19,284 ) — (2,657 ) Total other income (expense), net 44,650 (70,810 ) (19,650 ) — (45,810 ) Income from continuing operations before income taxes 82,967 38,994 1,104 — 123,065 Income tax expense (31,603 ) (41,785 ) (231 ) — (73,619 ) Income (loss) from continuing operations 51,364 (2,791 ) 873 — 49,446 Income (loss) from discontinued operations, net of tax 640 (28,068 ) 22,319 — (5,109 ) Equity in income (loss) of subsidiaries (7,667 ) 23,192 — (15,525 ) — Net income (loss) 44,337 (7,667 ) 23,192 (15,525 ) 44,337 Foreign currency translation adjustment (1) (31 ) — 715 — 684 Comprehensive income (loss) $ 44,306 $ (7,667 ) $ 23,907 $ (15,525 ) $ 45,021 (1) Foreign currency translation adjustment had no tax effect in 2015 . 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 1,415,132 23,707 — 1,581,311 Marketing 7,227 27,631 435 — 35,293 Research and development 3,456 9,591 — — 13,047 General and administrative 39,412 150,211 873 — 190,496 Restructuring and related costs 23 534 — — 557 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 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 33,023 169,099 721 12,955 215,798 Restructuring and related costs 724 3,771 — — 4,495 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 CASH FLOWS Year Ended December 31, 2015 (in thousands) Outerwall Inc. Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations and Consolidation Reclassifications Total Operating Activities: Net income (loss) $ 44,337 $ (7,667 ) $ 23,192 $ (15,525 ) $ 44,337 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and other 32,643 136,367 8,237 — 177,247 Amortization of intangible assets 14 13,536 44 — 13,594 Share-based payments expense 10,323 6,917 — — 17,240 Windfall excess tax benefits related to share-based payments (739 ) — — — (739 ) Deferred income taxes (14,533 ) (12,730 ) 7,644 — (19,619 ) Restructuring, impairment and related costs 509 1,545 — — 2,054 Loss from equity method investments, net 800 — — — 800 Amortization of deferred financing fees and debt discount 2,761 — — — 2,761 Gain from early extinguishment of debt (5,854 ) — — — (5,854 ) Gain on purchase of Gazelle — (989 ) — — (989 ) Goodwill impairment — 85,890 — — 85,890 Other (539 ) 295 (728 ) — (972 ) Equity in loss (income) of subsidiaries 7,667 (23,192 ) — 15,525 — Cash flows from changes in operating assets and liabilities: Accounts receivable, net (781 ) 10,673 119 — 10,011 Content library — (11,951 ) 3,631 — (8,320 ) Prepaid expenses and other current assets (2,826 ) (7,599 ) 360 — (10,065 ) Other assets 66 (62 ) 158 — 162 Accounts payable (1,316 ) 21,447 (2,188 ) — 17,943 Accrued payable to retailers 2,758 (12,820 ) 94 — (9,968 ) Other accrued liabilities (391 ) 11,337 (374 ) — 10,572 Net cash flows from operating activities (1) 74,899 210,997 40,189 — 326,085 Investing Activities: Purchases of property and equipment (26,861 ) (49,071 ) (1,659 ) — (77,591 ) Proceeds from sale of property and equipment 17 3,208 — — 3,225 Acquisitions, net of cash acquired — (17,980 ) — — (17,980 ) Investments in and advances to affiliates 187,538 (145,721 ) (41,817 ) — — Net cash flows from (used in) investing activities (1) 160,694 (209,564 ) (43,476 ) — (92,346 ) Financing Activities: Proceeds from new borrowing of Credit Facility 310,500 — — — 310,500 Principal payments on Credit Facility (339,375 ) — — — (339,375 ) Repurchases of common stock (159,800 ) — — — (159,800 ) Repurchase of Notes (34,589 ) — — — (34,589 ) Dividends paid (21,210 ) — — — (21,210 ) Principal payments on capital lease obligations and other debt (11,110 ) — (400 ) — (11,510 ) Financing costs associated with Credit Facility and senior unsecured notes (9 ) — — — (9 ) Windfall excess tax benefits related to share-based payments 739 — — — 739 Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options (1,461 ) — — — (1,461 ) Net cash flows used in financing activities (1) (256,315 ) — (400 ) — (256,715 ) Year Ended December 31, 2015 Outerwall Inc. Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations and Consolidation Reclassifications Total Effect of exchange rate changes on cash — — 2,829 — 2,829 Increase (decrease) in cash and cash equivalents (20,722 ) 1,433 (858 ) — (20,147 ) Cash and cash equivalents: Beginning of period 180,889 17,939 43,868 — 242,696 End of period $ 160,167 $ 19,372 $ 43,010 $ — $ 222,549 (1) During 2015 we discontinued our Redbox operations in Canada. 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, 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 loss (income) 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 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 ) Restructuring, impairment and related costs 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 of Credit Facility 400,000 — — — 400,000 Principal payments on Credit Facility (215,313 ) — — — (215,313 ) Financing costs associated with Credit Facility and senior unsecured notes (2,203 ) — — — (2,203 ) 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. |
Income Taxes From Continuing Op
Income Taxes From Continuing Operations | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes From Continuing Operations | Note 18: 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 2015 2014 2013 U.S. operations $ 121,940 $ 188,473 $ 259,057 Foreign operations 1,125 2,368 3,341 Total income from continuing operations before income taxes $ 123,065 $ 190,841 $ 262,398 Components of Income Tax Expense The components of income tax expense from continuing operations were as follows: Year Ended December 31, Dollars in thousands 2015 2014 2013 Current: U.S. Federal $ 89,996 $ 69,117 $ 38,876 State and local 10,658 12,294 10,104 Foreign 469 415 (424 ) Total current 101,123 81,826 48,556 Deferred: U.S. Federal (27,641 ) (16,232 ) (3,642 ) State and local 380 427 (5,653 ) Foreign (243 ) 143 449 Total deferred (27,504 ) (15,662 ) (8,846 ) Total income tax expense $ 73,619 $ 66,164 $ 39,710 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, 2015 2014 2013 U.S Federal tax expense at statutory rates 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 5.8 4.1 3.9 Federal and state credits (1.6 ) (1.1 ) (0.9 ) Domestic production activities deduction (4.9 ) (3.6 ) (0.6 ) Goodwill Impairment 24.4 — — Recognition of outside basis differences — (1.1 ) (15.4 ) ecoATM option payments 0.2 1.4 0.7 Valuation allowance 0.2 — 2.3 Acquisition of ecoATM — — (9.3 ) Other 0.7 — (0.6 ) Effective tax rate 59.8 % 34.7 % 15.1 % Our effective tax rate for the year ended December 31, 2015 , was higher than the U.S. Federal statutory rate of 35.0% primarily due to an $85.9 million non-tax deductible goodwill impairment charge recorded in the second quarter of 2015 and state income taxes, partially offset by the domestic production activities deduction and federal and state tax credits. On December 18, 2015, the President signed into law the Protecting Americans from Tax Hikes Act of 2015, which retroactively extended a number of tax deductions and credits that otherwise would have expired, including the research and development credit and bonus depreciation. We reported the 2015 impact of the Act in the fourth quarter. 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 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. 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, 2015 , 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, 2015 2014 2013 Balance, beginning of the year $ 4,639 $ 2,781 $ 2,383 Additions based on tax positions related to the current year 1,837 1,836 824 Additions for tax positions related to prior years 527 806 18 Reductions for tax positions related to prior years (118 ) — (257 ) Reductions from lapse of applicable statute of limitations — (784 ) (49 ) Settlements — — (138 ) Balance, end of year $ 6,885 $ 4,639 $ 2,781 We recognize interest and penalties, if any, related to income tax matters in Income tax expense. We accrued interest of $0.3 million and $0.1 million as of December 31, 2015 and December 31, 2014 , respectively. It was not necessary to accrue interest in 2013 or accrue for penalties in any period presented. Tax Years Open for Examination As of December 31, 2015 , for our major tax jurisdictions, the years 2012 through 2014 were open for examination by U.S. Federal and most state tax authorities. Additionally, the years 1998 through 2011 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, 2015 2014 Deferred tax assets: Income tax loss carryforwards $ 3,015 $ 5,690 Capital loss carryforwards 4,759 5,930 Credit carryforwards 3,482 2,929 Accrued liabilities and allowances 27,188 22,652 Stock-based compensation 9,065 11,901 Intangible assets 13,109 17,166 Other 5,720 3,776 Gross deferred tax assets 66,338 70,044 Less: Valuation Allowance (7,141 ) (6,898 ) Total deferred tax assets 59,197 63,146 Deferred tax liabilities: Property and equipment (42,984 ) (68,417 ) Product costs (46,699 ) (43,140 ) Total deferred tax liabilities (89,683 ) (111,557 ) Net deferred tax liabilities $ (30,486 ) $ (48,411 ) Change in Valuation Allowance Dollars in thousands Year Ended December 31, 2015 2014 2013 Increase in valuation allowance $ 243 $ — $ 6,898 The increase in our valuation allowance is due to changes in the expected future and actual utilization of capital losses and state tax credit carryforwards. 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, 2015 Federal State Foreign Net operating loss carryforwards $ 23 $ 24,570 $ 7,082 Deferred tax assets related to net operating loss carryforwards $ 8 $ 1,118 $ 1,889 Years that net operating loss carryforwards will expire between 2029-2034 2017-2033 2033-2035 U.S. State Tax Credits and Expiration Periods The following table shows our U.S. state tax credits before valuation allowances and related expiration periods. Dollars in thousands December 31, 2015 Amount Expiration U.S state tax credits: Illinois state tax credits $ 2,894 2017-2021 California U.S. state tax credits 588 Do not expire Total U.S. state tax credits $ 3,482 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | Note 19: Retirement Plans We sponsor a defined contribution plan for our employees who satisfy certain age and service requirements. Our contributions to these plans were $4.3 million , $4.3 million and $4.9 million in 2015 , 2014 and 2013 , respectively. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2015 | |
Dividends [Abstract] | |
Dividends | Note 20: Dividends On February 3, 2015 , our Board of Directors decided to initiate a quarterly cash dividend. The first cash dividend of $0.30 per outstanding share of our common stock was paid on March 18, 2015 , to all stockholders of record on March 3, 2015 . Additional cash dividends of $0.30 per outstanding share of our common stock were paid on June 23, 2015 , September 15, 2015 , and December 8, 2015 . Total dividends paid in 2015 were $21.3 million , including $0.6 million paid to recipients of unvested restricted stock awards. See Note 13: Earnings Per Share for additional information. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 21: Subsequent Events Studio Agreement On January 21, 2016, Redbox entered into an amendment to the existing agreement with Universal, extending the agreement through December 31, 2017. After accounting for this amendment, our total estimated movie commitments to purchase content was approximately $640.5 million . Dividend On February 3, 2016 , the Board declared a quarterly cash dividend of $0.30 per share expected to be paid on March 29, 2016 , to all stockholders of record as of the close of business on March 15, 2016 . |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
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 in Financial Reporting, 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); • recognition and measurement of purchase price allocation for business combinations; 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 $222.5 million and $242.7 million at December 31, 2015 , and December 31, 2014 , respectively. Of this total, cash equivalents were $2.7 million and $0.9 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. |
Accounts Receivable, 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, Policy | 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 our 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 that better aligns 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 affected 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, 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 Subject to Amortization, 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, 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 6: Goodwill and Other Intangible Assets . |
Lives and Recoverability of Equipment and Other 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, Rubi TM , Crisp Market TM and Star Studio TM . During the second quarter of 2013 we discontinued our Orango TM 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 18: 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 . |
Loss 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. |
Revenue Recognition, Policy | Revenue Recognition We recognize revenue when persuasive evidence of a sale arrangement exists, delivery has occurred or services are rendered, the sales price or fee is fixed or determinable and collectability 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 $2.5 million and $1.5 million as of December 31, 2015 and December 31, 2014 , respectively. • Coinstar - Revenue from a coin transaction, which is collected from either consumers or card issuers (in stored value product transactions), is recognized at the time the consumers’ coins are collected by our coin-counting kiosks. Our revenue represents the fee charged for coin transactions. • ecoATM - Revenue is recognized upon the sale and shipment of devices collected to third parties and consumers. • All Other - Revenue was recognized in our discontinued SAMPLE it concept when the service transaction was completed. |
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, Policy | Advertising Advertising costs, which are included as a component of marketing expenses, are expensed as incurred and totaled $15.2 million , $11.8 million and $11.7 million in 2015 , 2014 and 2013 , respectively. |
Research and Development, Policy | Research and Development Costs incurred for research and development activities are expensed as incurred. |
Foreign Currency 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 Payments, 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 10: Share-Based Payments . |
Reclassifications, Policy | Reclassifications To be consistent with our 2015 reporting, the following have been retrospectively reported in our Consolidated Statements of Comprehensive Income for all periods presented with no effect on net income, cash flows or stockholder's equity: • Results of our Redbox Canada operations which were discontinued during the first quarter of 2015. See Note 12: Discontinued Operations for additional information; • Restructuring and related costs. See Note 11: Restructuring for additional information; and • Basic and diluted earnings per share as a result of applying the two-class method of calculating earnings per share (the “Two-Class Method”). During the first quarter of 2015, the Two-Class Method became significantly more dilutive than the previously applied treasury stock method as a result of stock repurchases increasing the average number of unvested restricted awards (“participating securities”) as a percentage of total common shares outstanding. The impact of applying the Two-Class Method on both income from continuing operations and basic and diluted weighted average shares used to calculate earnings per common share is as follows: As Reported Under the Treasury Stock Method Amount Allocated to Participating Securities As Revised Under the Two-Class Method In thousands, except per share data 2014 2013 2014 2013 2014 2013 Income from continuing operations used in basic per share calculation $ 124,677 $ 222,688 $ (3,929 ) $ (5,473 ) $ 120,748 $ 217,215 Income from continuing operations used in diluted per share calculation $ 124,677 $ 222,688 $ (3,871 ) $ (5,294 ) $ 120,806 $ 217,394 Weighted average shares used in basic per share calculation 20,192 27,216 — — 20,192 27,216 Weighted average shares used in diluted per share calculation 20,699 28,381 (196 ) (212 ) 20,503 28,169 Basic earnings per common share from continuing operations $ 6.17 $ 8.18 $ (0.19 ) $ (0.20 ) $ 5.98 $ 7.98 Diluted earnings per common share from continuing operations $ 6.02 $ 7.85 $ (0.13 ) $ (0.13 ) $ 5.89 $ 7.72 See Note 13: Earnings Per Share for additional 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. |
Accounting Pronouncements Adopted During the Current Year, Policy | Accounting Pronouncements Adopted During the Current Year 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 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 disposition of our Redbox operations in Canada (“Redbox Canada”). See Note 12: Discontinued Operations for additional information. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . This ASU requires all deferred tax assets and liabilities to be presented in the balance sheet as noncurrent and is effective for us in our fiscal year beginning January 1, 2016. We elected to early adopt this new guidance in the fourth quarter of 2015 and have applied the changes retrospectively. The changes to our 2014 Consolidated Balance Sheet as a result of adopting the new guidance are as follow: In thousands, except per share data As Reported Reclassifications As Revised Assets: Prepaid expenses and other current assets $ 39,837 $ (18 ) $ 39,819 Deferred income taxes - long term $ 11,378 $ (15 ) $ 11,363 Liabilities: Deferred income taxes - current $ 21,432 $ (21,432 ) $ — Deferred income taxes - long term $ 38,375 $ 21,399 $ 59,774 Accounting Pronouncements Not Yet Adopted In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (Subtopic 835-30) . This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, instead of as a deferred charge. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (Subtopic 835-30) . This ASU provides additional guidance to ASU 2015-03, which did not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-15 noted that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We do not expect this standard to have a material impact to our consolidated financial statements and related disclosures, which is effective for us in our fiscal year beginning January 1, 2016. Early adoption is permitted. As of December 31, 2015, we had $3.8 million of deferred financing fees recorded in other long-term assets in our Consolidated Balance Sheets . In April 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. We do not expect this standard to have a material impact to our consolidated financial statements and related disclosures, which is effective for us in our fiscal year beginning January 1, 2016. Early adoption is permitted. 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. In July 2015, the FASB deferred the effective date for annual reporting periods beginning after December 15, 2017. Early adoption is permitted to the original effective date of December 15, 2016. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We are currently in the process of evaluating the impact of ASU 2014-09. 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 do not expect this standard to have a material impact to our consolidated financial statements and related disclosures, which is effective for us in our fiscal year beginning January 1, 2016. Early adoption is permitted. |
Earnings Per Share, Policy | Beginning in the first quarter of 2015, we began applying the two-class method of calculating basic and diluted earnings per share (the “Two-Class Method”) as it became significantly more dilutive than the previously applied treasury stock method as a result of stock repurchases increasing the average number of unvested restricted awards as a percentage of total common shares outstanding. The Two-Class Method is an earnings allocation formula that treats a participating security, as having rights to earnings that otherwise would have been available to common shareholders and assumes all earnings for the period are distributed. Our unvested service-based restricted stock awards granted are participating securities as they entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. |
Segment Reporting, Policy | 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 (loss) before depreciation, amortization and other, and share-based compensation granted to executives, non-employee directors and employees (“segment operating income (loss)”). Segment operating income (loss) 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. |
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 15: Fair Value . 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. |
Organization and Business (Tabl
Organization and Business (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Kiosk And Location Counts | Our kiosk and location counts as of December 31, 2015 , are as follows: Kiosks Locations Redbox 40,480 33,060 Coinstar 20,930 19,660 ecoATM 2,250 2,020 All Other (1) 120 120 Total 63,780 54,860 (1) As part of our decision to discontinue operating SAMPLE it in the fourth quarter of 2015, all SAMPLE it kiosks were removed from their locations during January 2016. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Property and Equipment, Useful Lives | 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 December 31, Dollars in thousands 2015 2014 Kiosks and components $ 1,163,210 $ 1,165,925 Computers, servers, and software 193,507 200,915 Leasehold improvements 22,663 29,625 Office furniture and equipment 7,047 9,218 Vehicles 5,118 6,234 Property and equipment, at cost 1,391,545 1,411,917 Accumulated depreciation and amortization (1,075,532 ) (983,449 ) Property and equipment, net $ 316,013 $ 428,468 |
Comparison of Earnings Per Share Calculation Methods | The impact of applying the Two-Class Method on both income from continuing operations and basic and diluted weighted average shares used to calculate earnings per common share is as follows: As Reported Under the Treasury Stock Method Amount Allocated to Participating Securities As Revised Under the Two-Class Method In thousands, except per share data 2014 2013 2014 2013 2014 2013 Income from continuing operations used in basic per share calculation $ 124,677 $ 222,688 $ (3,929 ) $ (5,473 ) $ 120,748 $ 217,215 Income from continuing operations used in diluted per share calculation $ 124,677 $ 222,688 $ (3,871 ) $ (5,294 ) $ 120,806 $ 217,394 Weighted average shares used in basic per share calculation 20,192 27,216 — — 20,192 27,216 Weighted average shares used in diluted per share calculation 20,699 28,381 (196 ) (212 ) 20,503 28,169 Basic earnings per common share from continuing operations $ 6.17 $ 8.18 $ (0.19 ) $ (0.20 ) $ 5.98 $ 7.98 Diluted earnings per common share from continuing operations $ 6.02 $ 7.85 $ (0.13 ) $ (0.13 ) $ 5.89 $ 7.72 |
Early Adoption of ASU 2015-17 Income Taxes | The changes to our 2014 Consolidated Balance Sheet as a result of adopting the new guidance are as follow: In thousands, except per share data As Reported Reclassifications As Revised Assets: Prepaid expenses and other current assets $ 39,837 $ (18 ) $ 39,819 Deferred income taxes - long term $ 11,378 $ (15 ) $ 11,363 Liabilities: Deferred income taxes - current $ 21,432 $ (21,432 ) $ — Deferred income taxes - long term $ 38,375 $ 21,399 $ 59,774 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations, Assets Acquired and Liabilities Assumed | The following table shows the consideration transferred and the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed and the resultant purchase price allocation. Dollars in thousands November 10, 2015 Total consideration transferred $ 17,980 Assets acquired: Accounts receivable $ 67 Prepaid expenses and other current assets 3,963 Property and equipment 252 Intangible assets 16,000 Total assets acquired 20,282 Liabilities assumed: Deferred revenue (750 ) Deferred tax liabilities (563 ) Total liabilities assumed (1,313 ) Total net assets acquired $ 18,969 Bargain purchase gain $ 989 |
Intangible Assets Acquired and Estimated Useful Life | Acquired identifiable intangible assets and their estimated useful life in years are as follows: Dollars in thousands Purchase Price Estimated Useful Life in Years Trade name $ 14,000 10 Developed technology $ 2,000 3 |
Revenue and Operating Loss from the Acquisition of Gazelle | The following table shows the revenue and operating loss included in our Consolidated Statements of Comprehensive Income resulting from the acquisition of Gazelle since the closing date, including the amortization for acquired intangibles which are included in our ecoATM segment: Year Ended Dollars in thousands December 31, 2015 Revenue $ 13,269 Operating loss $ 948 |
Pro Forma Information | Pro forma information The following unaudited pro forma information represents the results of operations for Outerwall Inc. and includes the Gazelle business acquired as if the acquisition was consummated as of January 1, 2014. Years Ended December 31, (Unaudited) Dollars in thousands 2015 2014 Pro-forma revenue $ 2,264,467 $ 2,378,508 Pro-forma income from continuing operations $ 38,524 $ 114,641 |
Prepaid Expenses and Other Cu34
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets December 31, Dollars in thousands 2015 2014 Spare parts $ 9,780 $ 13,643 Licenses 6,394 5,881 Electronic devices inventory 7,846 5,259 Income taxes receivable 9,517 95 Prepaid rent 1,043 1,446 DVD cases and labels 1,371 1,330 Other 15,417 12,165 Total prepaid and other current assets $ 51,368 $ 39,819 |
Other Accrued Liabilities | Other accrued liabilities December 31, Dollars in thousands 2015 2014 Payroll related expenses $ 40,676 $ 33,343 Studio revenue share and other content related expenses 28,964 23,226 Business taxes 16,080 21,629 Insurance 13,594 9,615 Deferred revenue 11,201 6,995 Income taxes payable 16 9,463 Accrued interest expense 6,913 6,974 Accrued early lease termination and sublease expenses 4,991 — Service contract provider expenses 4,070 4,191 Deferred rent expense 1,728 6,162 Other 13,204 15,528 Total other accrued liabilities $ 141,437 $ 137,126 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 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 December 31, Dollars in thousands 2015 2014 Kiosks and components $ 1,163,210 $ 1,165,925 Computers, servers, and software 193,507 200,915 Leasehold improvements 22,663 29,625 Office furniture and equipment 7,047 9,218 Vehicles 5,118 6,234 Property and equipment, at cost 1,391,545 1,411,917 Accumulated depreciation and amortization (1,075,532 ) (983,449 ) Property and equipment, net $ 316,013 $ 428,468 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Gross Amount and Accumulated Impairment | Gross amount of goodwill and accumulated impairment charges that we have recorded are as follows: Dollars in thousands Goodwill $ 559,307 Accumulated impairment losses (85,890 ) Net goodwill at December 31, 2015 $ 473,417 |
Goodwill by Segment | A reconciliation of the beginning and ending carrying amounts of goodwill by segment is as follows: Dollars in thousands December 31, Goodwill Impairment December 31, Redbox $ 138,743 $ — $ 138,743 Coinstar 156,351 — 156,351 ecoATM 264,213 (85,890 ) 178,323 Total goodwill $ 559,307 $ (85,890 ) $ 473,417 |
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 2015 2014 Retailer relationships 5 - 10 years $ 53,295 $ 53,295 Accumulated amortization (27,212 ) (23,200 ) Retailer relationships, net 26,083 30,095 Developed technology 3 - 5 years 36,000 34,000 Accumulated amortization (16,544 ) (9,633 ) Developed technology, net 19,456 24,367 Trade names 5 - 10 years 20,000 6,000 Accumulated amortization (3,133 ) (1,700 ) Trade names, net 16,867 4,300 Other 1 - 40 years 10,800 10,800 Accumulated amortization (6,109 ) (4,871 ) Other, net 4,691 5,929 Total intangible assets, net $ 67,097 $ 64,691 |
Amortization Of Intangible Assets | Amortization expense was as follows: Year Ended December 31, Dollars in thousands 2015 2014 2013 Retailer relationships $ 4,012 $ 5,432 $ 6,250 Developed technology 6,911 6,800 2,833 Trade names 1,433 1,200 500 Other 1,238 1,260 1,350 Total amortization of intangible assets $ 13,594 $ 14,692 $ 10,933 Less: amortization included in discontinued operations (44 ) (38 ) (26 ) Total amortization of intangible assets from continuing operations $ 13,550 $ 14,654 $ 10,907 |
Future Amortization Expense | Assuming no future impairment, the expected future amortization as of December 31, 2015 , is as follows: Dollars in thousands Retailer Relationships Developed Technology Trade Names Other Total 2016 $ 4,012 $ 7,467 $ 2,600 $ 1,081 $ 15,160 2017 4,012 7,467 2,600 1,081 15,160 2018 4,012 4,522 2,100 964 11,598 2019 4,012 — 1,400 801 6,213 2020 4,012 — 1,400 407 5,819 Thereafter 6,023 — 6,767 357 13,147 Total expected amortization $ 26,083 $ 19,456 $ 16,867 $ 4,691 $ 67,097 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
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 2015 2014 2013 Gain on previously held equity interest on ecoATM $ — $ — $ 68,376 Proportionate share of net loss of equity method investees: Joint Venture — (25,793 ) (42,660 ) Pursuant Health and ecoATM (800 ) (530 ) (3,313 ) Total proportionate share of net loss of equity method investees (800 ) (26,323 ) (45,973 ) Amortization of difference in carrying amount and underlying equity in Joint Venture — (2,411 ) (2,475 ) Total income (loss) from equity method investments $ (800 ) $ (28,734 ) $ 19,928 A summary of financial information for our equity method investees in the aggregate, as provided to us by the investees, is as follows: Balance Sheets (1) December 31, Dollars in thousands 2015 2014 Current assets $ 3,457 $ 3,408 Noncurrent assets $ 13,394 $ 20,376 Current liabilities $ 5,888 $ 7,321 Long-term liabilities $ 22,811 $ 18,754 (1) Represents Pursuant Health, Inc. only. Statement of Operations Year Ended December 31, Dollars in thousands 2015 2014 2013 Revenue $ 7,389 $ 29,963 $ 15,824 Cost of sales and service $ 10,129 $ 68,732 $ 25,092 Net loss from continuing operations $ 6,107 $ 140,919 $ 134,911 |
Debt and Other Long-Term Liab38
Debt and Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
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 2019 Notes 2021 Notes Term Loans Revolving Line of Credit As of December 31, 2015: Principal $ 350,000 $ 258,908 $ 136,875 $ 140,500 $ 886,283 Discount (3,275 ) (3,029 ) (260 ) — (6,564 ) Total 346,725 255,879 136,615 140,500 879,719 $ 5,889 $ 9,412 $ 19,477 $ 914,497 Less: current portion — — (13,125 ) — (13,125 ) (4,006 ) — — (17,131 ) Total long-term portion $ 346,725 $ 255,879 $ 123,490 $ 140,500 $ 866,594 $ 1,883 $ 9,412 $ 19,477 $ 897,366 Unamortized deferred financing fees (1) $ 495 $ 1,054 $ — $ 2,300 $ 3,849 $ 3,849 Debt Other Liabilities Total Senior Notes Credit Facility Total Debt Capital Lease Obligations Asset retirement obligations Other long-term liabilities Dollars in thousands 2019 Notes 2021 Notes 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 (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 | Interest Expense Dollars in thousands Year Ended December 31, 2015 2014 2013 Cash interest expense $ 45,507 $ 41,562 $ 25,289 Non-cash interest expense: Amortization of debt discount 1,731 2,606 4,674 Amortization of deferred financing fees 1,030 1,510 1,720 Other — — (550 ) Total non-cash interest expense 2,761 4,116 5,844 Total cash and non-cash interest expense 48,268 45,678 31,133 (Gain) loss from early extinguishment of debt (5,854 ) 2,018 6,013 Total interest expense $ 42,414 $ 47,696 $ 37,146 |
Maturities of Term Loan | The Amended and Restated Credit Agreement requires principal amortization payments under the Term Loan as follows: Dollars in thousands Repayment Amount 2016 $ 13,125 2017 15,000 2018 18,750 2019 90,000 Total $ 136,875 |
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, 2015 2014 Tenant improvement and deferred rent and other $ 12,592 $ 13,012 Unrecognized tax benefit 6,885 4,639 Total other long-term liabilities $ 19,477 $ 17,651 |
Repurchases of Common Stock (Ta
Repurchases of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Class of Stock Disclosures [Abstract] | |
Summary of Stock Repurchases | The following tables present a summary of our 2015 authorized stock repurchase balance and repurchases made during the past three years: Dollars in thousands Board Authorization Authorized repurchase - as of January 1, 2015 $ 163,655 Additional board authorization 250,000 Proceeds from the exercise of stock options 2,552 Repurchase of common stock from open market (159,800 ) Authorized repurchase - as of December 31, 2015 $ 256,407 Repurchases made in the year ended December 31, Number of Shares Repurchased Average Price per Share (in dollars) Total Purchase Price (in thousands) 2015 2,514,139 $ 63.56 $ 159,800 2014 Tender offer (1) 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 Total 13,745,799 $ 65.20 $ 896,175 (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. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Grant Information | The following is the summary of grant information: Shares in thousands December 31, 2015 Unissued common stock reserved for issuance under all plans 1,034 Shares available for future grants 979 |
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 2015 2014 2013 Share-based payments expense: Share-based compensation - stock options $ 293 $ 803 $ 1,566 Share-based compensation - restricted stock 12,102 11,214 10,504 Share-based payments for content arrangements 4,982 1,367 4,761 Total share-based payments expense $ 17,377 $ 13,384 $ 16,831 Tax benefit on share-based payments expense $ 6,736 $ 5,134 $ 6,392 Per share weighted average grant date fair value of stock options granted $ — $ — $ 53.90 Per share weighted average grant date fair value of restricted stock granted $ 66.67 $ 71.37 $ 53.94 Total intrinsic value of stock options exercised $ 1,061 $ 3,263 $ 10,567 Grant date fair value of restricted stock vested $ 12,631 $ 13,036 $ 12,641 December 31, 2015 Dollars in thousands Unrecognized Share-Based Payments Expense Weighted-Average Remaining Life Unrecognized share-based payments expense: Share-based compensation - stock options $ 149 0.9 years Share-based compensation - restricted stock 19,032 2.2 years Share-based payments for content arrangements 1,090 0.8 years Total unrecognized share-based payments expense $ 20,271 |
Summary of Stock Option Activity | The following table presents a summary of stock option activity for 2015 : Shares in thousands Options Weighted Average Exercise Price Outstanding, December 31, 2014 128 $ 52.59 Granted — $ — Exercised (49 ) $ 52.10 Canceled, expired, or forfeited (24 ) $ 53.99 Outstanding, December 31, 2015 55 $ 52.40 |
Information Regarding Stock Options Outstanding | Certain information regarding stock options outstanding as of December 31, 2015 , is as follows: Options Shares and intrinsic value in thousands Outstanding Exercisable Number 55 39 Weighted average per share exercise price $ 52.40 $ 51.67 Aggregate intrinsic value $ 35 $ 35 Weighted average remaining contractual term (in years) 6.33 6.09 |
Summary of Restricted Stock Award Activity | The following table presents a summary of restricted stock award activity for 2015 : Shares in thousands Restricted Stock Awards Weighted Average Grant Date Fair Value Non-vested, December 31, 2014 609 $ 62.35 Granted 352 $ 66.67 Vested (188 ) $ 59.09 Forfeited (217 ) $ 65.26 Non-vested, December 31, 2015 556 $ 65.86 |
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, 2015 , is as follows: Whole shares Granted Vested Unvested Sony (1) 243,348 243,348 — Paramount (2)(3) 350,000 350,000 — |
Expected Amortization Expense of Share-Based Compensation | The expected future recognition of expense associated with the rights to receive cash as of December 31, 2015 is as follows: Dollars in thousands Expected Expense 2016 $ 1,868 2017 284 Remaining total expected expense $ 2,152 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The total amount incurred for restructuring, exclusive of asset impairments incurred by reportable segment (on an allocated basis) and expense type is as follows: Year Ended December 31, Dollars in thousands 2015 Redbox Severance $ 4,236 Lease termination and related costs (excluding related asset impairments) 4,958 Purchase commitment settlement costs 7,021 Total Redbox restructuring costs 16,215 Coinstar Severance 492 Lease termination and related costs (excluding related asset impairments) 100 Purchase commitment settlement costs 1,369 Total Coinstar restructuring costs 1,961 ecoATM Severance 602 Lease termination and related costs (excluding related asset impairments) — Purchase commitment settlement costs 85 Total ecoATM restructuring costs 687 All Other Severance 822 Lease termination and related costs (excluding related asset impairments) 2 Purchase commitment settlement costs 26 Total All Other restructuring costs 850 Total restructuring costs in continuing operations 19,713 Restructuring costs in discontinued operations 522 Total restructuring costs $ 20,235 |
Restructuring and Related Costs from Continuing Operations | Year Ended December 31, Dollars in thousands 2015 Restructuring costs $ 20,235 Impairment of lease related assets (see Note 5) 7,440 Total restructuring and related costs 27,675 Less: restructuring costs included in discontinued operations (522 ) Restructuring and related costs from continuing operations $ 27,153 |
Restructuring Reserve by Type of Cost | A reconciliation of the beginning and ending liability balance by expense type is as follows: Dollars in thousands Severance Expense Lease Termination Costs Other Beginning Balance - January 1, 2015 $ — $ — $ — Costs charged to expense (1) 6,284 5,138 8,813 Reclassification of deferred balances (2) — 5,260 — Costs paid or otherwise settled (4,899 ) (5,407 ) (8,813 ) Ending Balance - December 31, 2015 $ 1,385 $ 4,991 $ — (1) Other includes an $8.5 million one-time payment to settle an outstanding purchase commitment. (2) Deferred rent liabilities related to the early lease termination that were reclassified to present the outstanding liability related to the terminated leases. |
Restructuring and Related Costs - 2013 Restructuring Plan | Dollars in thousands Cumulative as of December 31, 2014 Year Ended December 31, 2014 Year Ended December 31, 2013 Redbox Severance $ 4,305 $ 534 $ 3,771 Coinstar Severance 747 23 724 Total restructuring costs in continuing operations 5,052 557 4,495 Restructuring costs in discontinued operations 2,899 590 2,309 Total restructuring costs $ 7,951 $ 1,147 $ 6,804 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations Included in Financial Statements | 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 2015 2014 2013 Redbox Canada revenue $ 1,972 $ 11,417 $ 6,816 Certain new ventures revenue — 100 4,399 Total revenue $ 1,972 $ 11,517 $ 11,215 Redbox Canada loss before income tax $ (13,605 ) $ (23,707 ) $ (19,830 ) Certain new ventures loss before income tax — (1,259 ) (54,395 ) Total loss before income tax: (13,605 ) (24,966 ) (74,225 ) Redbox Canada income tax benefit 8,496 6,416 5,233 Certain new ventures income tax benefit — 491 21,096 Total income tax benefit 8,496 6,907 26,329 Redbox Canada loss, net of tax (5,109 ) (17,291 ) (14,597 ) Certain new ventures loss, net of tax — (768 ) (33,299 ) Total loss from discontinued operations, net of tax $ (5,109 ) $ (18,059 ) $ (47,896 ) |
Discontinued Operations Included in Financial Statements - Redbox Canada | 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 2015 2014 2013 Major classes of line items constituting pretax loss of discontinued operations: Revenue $ 1,972 $ 11,417 $ 6,816 Direct operating 4,533 20,027 18,278 Marketing 112 2,947 2,175 Research and development — — 2 General and administrative 117 1,078 3,088 Restructuring and related costs 522 — — Depreciation and other 5,857 7,354 2,760 Amortization of intangible assets 44 38 26 Other expense, net (4,392 ) (3,680 ) (317 ) Pretax loss of discontinued operations related to major classes of pretax loss (13,605 ) (23,707 ) (19,830 ) Income tax benefit (1) 8,496 6,416 5,233 Net loss on discontinued operations $ (5,109 ) $ (17,291 ) $ (14,597 ) |
Discontinued Operations Cash Flows | Significant operating and investing cash flows of Redbox Canada were as follows: Year Ended December 31, Dollars in thousands 2015 2014 2013 Net loss on discontinued operations $ (5,109 ) $ (17,291 ) $ (14,597 ) Adjustments to reconcile net loss to net cash flows from operating activities: Depreciation and amortization 5,901 7,392 2,786 Content library 3,328 (787 ) (410 ) Prepaid and other current assets 1,329 (293 ) (516 ) Accounts payable (2,663 ) 627 644 Accrued payables to retailers (155 ) (175 ) 247 Other accrued liabilities (806 ) (122 ) 506 Net cash flows from operating activities $ 1,825 $ (10,649 ) $ (11,340 ) Investing activities: Purchase of property, plant and equipment (292 ) (5,494 ) (9,330 ) Total cash flows used in investing activities $ (292 ) $ (5,494 ) $ (9,330 ) |
Asset Impairment Charges | 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, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted EPS Calculations | Our calculation of basic and diluted earnings per share is as follows: Year Ended December 31, In thousands, except per share data 2015 2014 2013 Numerator Income from continuing operations $ 49,446 $ 124,677 $ 222,688 Loss from discontinued operations, net of tax (5,109 ) (18,059 ) (47,896 ) Net income $ 44,337 $ 106,618 $ 174,792 Income from continuing operations $ 49,446 $ 124,677 $ 222,688 Dividends and undistributed income allocated to participating shares (1,329 ) (3,929 ) (5,473 ) Income from continuing operations to common shares - basic 48,117 120,748 217,215 Effect of reallocating undistributed income from continuing operations to participating shares 1 58 179 Income from continuing operations to common shares - diluted $ 48,118 $ 120,806 $ 217,394 Denominator Weighted average common shares - basic 17,467 20,192 27,216 Dilutive effect of share-based payment awards 20 81 235 Dilutive effect of convertible debt — 230 718 Weighted average common shares - diluted (1) 17,487 20,503 28,169 Basic earnings (loss) per common share: Continuing operations $ 2.75 $ 5.98 $ 7.98 Discontinued operations (0.29 ) (0.89 ) (1.76 ) Basic earnings per common share $ 2.46 $ 5.09 $ 6.22 Diluted earnings (loss) per common share: Continuing operations $ 2.75 $ 5.89 $ 7.72 Discontinued operations (0.29 ) (0.88 ) (1.70 ) Diluted earnings per common share $ 2.46 $ 5.01 $ 6.02 Stock options and share-based awards not included in diluted EPS calculation because their effect would have be antidilutive 7 11 13 (1) Participating securities were included in the calculation of diluted earnings per share using the two-class method, as this calculation was more dilutive than the calculation using the treasury stock method. |
Business Segments and Enterpr44
Business Segments and Enterprise-Wide Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Dollars in thousands Year Ended December 31, 2015 Redbox Coinstar ecoATM All Other Corporate Unallocated Total Revenue $ 1,760,899 $ 318,611 $ 113,558 $ 143 $ — $ 2,193,211 Expenses: Direct operating 1,213,744 159,211 113,141 4,431 2,561 1,493,088 Marketing 19,804 5,566 8,481 1,128 695 35,674 Research and development — — 5,545 (84 ) 1,737 7,198 General and administrative 129,013 31,561 10,875 7,188 11,756 190,393 Restructuring and related costs (Note 11) 23,540 2,076 687 850 — 27,153 Goodwill impairment (Note 6) — — 85,890 — — 85,890 Segment operating income (loss) 374,798 120,197 (111,061 ) (13,370 ) (16,749 ) 353,815 Less: depreciation and amortization (118,902 ) (31,871 ) (26,382 ) (7,785 ) — (184,940 ) Operating income (loss) 255,896 88,326 (137,443 ) (21,155 ) (16,749 ) 168,875 Loss from equity method investments, net — — — — (800 ) (800 ) Interest expense, net — — — — (42,353 ) (42,353 ) Other, net — — — — (2,657 ) (2,657 ) Income (loss) from continuing operations before income taxes $ 255,896 $ 88,326 $ (137,443 ) $ (21,155 ) $ (62,559 ) $ 123,065 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 1,318,509 161,214 92,182 2,821 6,585 1,581,311 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 135,554 26,989 12,773 3,522 11,658 190,496 Restructuring and related costs (Note 11) 534 23 — — — 557 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) from continuing operations 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 160,863 25,220 7,868 7,683 14,164 215,798 Restructuring and related costs (Note 11) 3,771 724 — — — 4,495 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 Loss from equity method investments, net — — — — 19,928 19,928 Interest expense, net — — — — (32,807 ) (32,807 ) Other, net — — — — (3,599 ) (3,599 ) Income (loss) from continuing operations before income taxes $ 256,951 $ 68,585 $ (13,102 ) $ (12,824 ) $ (37,212 ) $ 262,398 |
Significant Retailer Relationship | The following retailers accounted for 10% or more of our consolidated revenue: Year Ended December 31, 2015 2014 2013 Wal-Mart Stores Inc. 16.6 % 15.5 % 15.2 % Walgreen Co. 13.4 % 13.8 % 14.7 % The Kroger Company 9.8 % 9.8 % 10.0 % |
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 2015 2014 2013 U.S. $ 2,145,887 $ 2,242,753 $ 2,254,790 All other 47,324 48,833 44,995 Total revenue $ 2,193,211 $ 2,291,586 $ 2,299,785 Long-lived assets by geographic location were as follows: Years Ended December 31, Dollars in thousands 2015 2014 2013 U.S. $ 848,450 $ 1,027,271 $ 1,140,224 All other 14,133 33,426 38,406 Total long-lived assets $ 862,583 $ 1,060,697 $ 1,178,630 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 Level 1 Level 2 Level 3 Money market demand accounts and investment grade fixed income securities $ 2,743 $ — $ — Fair Value at December 31, 2014 Level 1 Level 2 Level 3 Money market demand accounts and investment grade fixed income securities $ 916 $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Gross property and equipment $ 26,394 $ 41,336 Accumulated depreciation (20,735 ) (26,831 ) Net property and equipment $ 5,659 $ 14,505 |
Schedule of Future Minimum Lease Payments for Capital Leases | As of December 31, 2015 , our future minimum lease payments, net of sublease income are as follows: Dollars in thousands Capital Leases Operating Leases (1) 2016 $ 4,144 $ 18,969 2017 1,011 13,445 2018 429 10,215 2019 305 7,986 2020 209 4,936 Thereafter 123 7,132 Total minimum lease commitments 6,221 62,683 Less: sublease income — (1,332 ) Total minimum lease commitments, net 6,221 $ 61,351 Less: amounts representing interest (332 ) Present value of capital lease obligations 5,889 Less: Current portion of capital lease obligations (4,006 ) Long-term portion of capital lease obligations $ 1,883 (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 | We have entered into certain license agreements to obtain content for movie and video game rentals. A summary of the estimated movie commitments in relation to these agreements as of December 31, 2015 , is presented in the following table: Dollars in thousands December 31, Total 2016 2017 Total estimated movie commitments (1) $ 448,718 $ 381,275 $ 67,443 |
Summary of General Terms of Content License Agreements | General terms of our content license agreements with studios are as follows as of December 31, 2015 : Studio End Date Release Date Fox 6/30/2017 Delay (1) Sony 9/30/2016 Day & Date (2) Paramount 12/31/2016 Day & Date (2) Warner 3/31/2017 Delay (1) Lionsgate 9/30/2016 (3) Day & Date (2) Universal 12/31/2015 (4) Delay (1) (1) Content licensed under the agreement is available for rental after a certain number of days following the retail release. (2) Content licensed under the agreement is available for rental on the same day and date as the retail release. (3) Agreement extends the term of the arrangement automatically for an additional year under certain conditions. (4) Subsequent to year end, Redbox entered into an amendment to the existing agreement with Universal, extending the agreement through December 31, 2017. See Note 21: Subsequent Events for additional information. Reve |
Schedule of Estimated Revenue Share Commitments to Retailers | 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 December 31, Total 2016 2017 2018 Redbox $ 2,365 $ 1,711 $ 523 $ 131 |
Guarantor Subsidiaries (Tables)
Guarantor Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Balance Sheet | CONSOLIDATING BALANCE SHEETS As of December 31, 2015 (in thousands) Outerwall Inc. Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations and Consolidation Reclassifications Total Assets Current Assets: Cash and cash equivalents $ 160,167 $ 19,372 $ 43,010 $ — $ 222,549 Accounts receivable, net of allowances 3,983 33,269 1,212 — 38,464 Content library — 188,490 — — 188,490 Prepaid expenses and other current assets 17,720 33,049 599 — 51,368 Intercompany receivables 35,654 527,996 426 (564,076 ) — Total current assets 217,524 802,176 45,247 (564,076 ) 500,871 Property and equipment, net 97,659 204,081 14,273 — 316,013 Deferred income taxes — — 2,606 — 2,606 Goodwill and other intangible assets, net 249,703 290,811 — — 540,514 Other long-term assets 4,596 1,293 167 — 6,056 Investment in related parties 921,456 27,798 — (949,254 ) — Total assets $ 1,490,938 $ 1,326,159 $ 62,293 $ (1,513,330 ) $ 1,366,060 Liabilities and Stockholders’ Equity Current Liabilities: Accounts payable $ 16,127 $ 167,694 $ 189 $ — $ 184,010 Accrued payable to retailers 71,947 30,157 12,994 — 115,098 Other accrued liabilities 57,025 82,401 2,011 — 141,437 Current portion of long-term debt and other long-term liabilities 16,832 — 299 — 17,131 Intercompany payables 459,789 85,487 18,800 (564,076 ) — Total current liabilities 621,720 365,739 34,293 (564,076 ) 457,676 Long-term debt and other long-term liabilities 877,325 19,882 159 — 897,366 Deferred income taxes 13,965 19,083 44 — 33,092 Total liabilities 1,513,010 404,704 34,496 (564,076 ) 1,388,134 Commitments and contingencies Stockholders’ Equity: Preferred stock — — — — — Common stock 599,675 252,727 4,636 (371,875 ) 485,163 Treasury stock (1,151,063 ) — 3,000 (3,000 ) (1,151,063 ) Retained earnings 530,140 668,728 18,963 (574,379 ) 643,452 Accumulated other comprehensive income (loss) (824 ) — 1,198 — 374 Total stockholders’ equity (deficit) (22,072 ) 921,455 27,797 (949,254 ) (22,074 ) Total liabilities and stockholders’ equity $ 1,490,938 $ 1,326,159 $ 62,293 $ (1,513,330 ) $ 1,366,060 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 14,884 23,923 1,012 — 39,819 Intercompany receivables 40,762 467,181 — (507,943 ) — Total current assets 239,738 729,407 50,024 (507,943 ) 511,226 Property and equipment, net 133,923 263,412 31,133 — 428,468 Deferred income taxes — — 11,363 — 11,363 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 $ 1,547,277 $ 1,363,217 $ 92,855 $ (1,420,063 ) $ 1,583,286 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 Intercompany payables 309,932 121,015 76,996 (507,943 ) — Total current liabilities 471,810 391,788 96,810 (507,943 ) 452,465 Long-term debt and other long-term liabilities 949,588 22,946 1,135 — 973,669 Deferred income taxes 28,500 31,249 25 — 59,774 Total liabilities 1,449,898 445,983 97,970 (507,943 ) 1,485,908 Commitments and contingencies Stockholders’ Equity: 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 $ 1,547,277 $ 1,363,217 $ 92,855 $ (1,420,063 ) $ 1,583,286 |
Condensed Consolidating Statement of Comprehensive Income | CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Year Ended December 31, 2015 (in thousands) Outerwall Inc. Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations and Consolidation Reclassifications Total Revenue $ 271,430 $ 1,874,457 $ 47,324 $ — $ 2,193,211 Expenses: Direct operating 143,429 1,328,269 21,390 — 1,493,088 Marketing 6,485 28,916 273 — 35,674 Research and development (83 ) 7,281 — — 7,198 General and administrative 47,699 142,012 682 — 190,393 Restructuring and related costs 2,926 24,227 — — 27,153 Depreciation and other 32,643 134,522 4,225 — 171,390 Amortization of intangible assets 14 13,536 — — 13,550 Goodwill impairment — 85,890 — — 85,890 Total expenses 233,113 1,764,653 26,570 — 2,024,336 Operating income 38,317 109,804 20,754 — 168,875 Other income (expense), net: Loss from equity method investments, net (800 ) — — — (800 ) Interest income (expense) 30,177 (72,164 ) (366 ) — (42,353 ) Other, net 15,273 1,354 (19,284 ) — (2,657 ) Total other income (expense), net 44,650 (70,810 ) (19,650 ) — (45,810 ) Income from continuing operations before income taxes 82,967 38,994 1,104 — 123,065 Income tax expense (31,603 ) (41,785 ) (231 ) — (73,619 ) Income (loss) from continuing operations 51,364 (2,791 ) 873 — 49,446 Income (loss) from discontinued operations, net of tax 640 (28,068 ) 22,319 — (5,109 ) Equity in income (loss) of subsidiaries (7,667 ) 23,192 — (15,525 ) — Net income (loss) 44,337 (7,667 ) 23,192 (15,525 ) 44,337 Foreign currency translation adjustment (1) (31 ) — 715 — 684 Comprehensive income (loss) $ 44,306 $ (7,667 ) $ 23,907 $ (15,525 ) $ 45,021 (1) Foreign currency translation adjustment had no tax effect in 2015 . 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 1,415,132 23,707 — 1,581,311 Marketing 7,227 27,631 435 — 35,293 Research and development 3,456 9,591 — — 13,047 General and administrative 39,412 150,211 873 — 190,496 Restructuring and related costs 23 534 — — 557 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 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 33,023 169,099 721 12,955 215,798 Restructuring and related costs 724 3,771 — — 4,495 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 . |
Condensed Consolidating Statement of Cash Flows | CONSOLIDATING STATEMENTS OF CASH FLOWS Year Ended December 31, 2015 (in thousands) Outerwall Inc. Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations and Consolidation Reclassifications Total Operating Activities: Net income (loss) $ 44,337 $ (7,667 ) $ 23,192 $ (15,525 ) $ 44,337 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and other 32,643 136,367 8,237 — 177,247 Amortization of intangible assets 14 13,536 44 — 13,594 Share-based payments expense 10,323 6,917 — — 17,240 Windfall excess tax benefits related to share-based payments (739 ) — — — (739 ) Deferred income taxes (14,533 ) (12,730 ) 7,644 — (19,619 ) Restructuring, impairment and related costs 509 1,545 — — 2,054 Loss from equity method investments, net 800 — — — 800 Amortization of deferred financing fees and debt discount 2,761 — — — 2,761 Gain from early extinguishment of debt (5,854 ) — — — (5,854 ) Gain on purchase of Gazelle — (989 ) — — (989 ) Goodwill impairment — 85,890 — — 85,890 Other (539 ) 295 (728 ) — (972 ) Equity in loss (income) of subsidiaries 7,667 (23,192 ) — 15,525 — Cash flows from changes in operating assets and liabilities: Accounts receivable, net (781 ) 10,673 119 — 10,011 Content library — (11,951 ) 3,631 — (8,320 ) Prepaid expenses and other current assets (2,826 ) (7,599 ) 360 — (10,065 ) Other assets 66 (62 ) 158 — 162 Accounts payable (1,316 ) 21,447 (2,188 ) — 17,943 Accrued payable to retailers 2,758 (12,820 ) 94 — (9,968 ) Other accrued liabilities (391 ) 11,337 (374 ) — 10,572 Net cash flows from operating activities (1) 74,899 210,997 40,189 — 326,085 Investing Activities: Purchases of property and equipment (26,861 ) (49,071 ) (1,659 ) — (77,591 ) Proceeds from sale of property and equipment 17 3,208 — — 3,225 Acquisitions, net of cash acquired — (17,980 ) — — (17,980 ) Investments in and advances to affiliates 187,538 (145,721 ) (41,817 ) — — Net cash flows from (used in) investing activities (1) 160,694 (209,564 ) (43,476 ) — (92,346 ) Financing Activities: Proceeds from new borrowing of Credit Facility 310,500 — — — 310,500 Principal payments on Credit Facility (339,375 ) — — — (339,375 ) Repurchases of common stock (159,800 ) — — — (159,800 ) Repurchase of Notes (34,589 ) — — — (34,589 ) Dividends paid (21,210 ) — — — (21,210 ) Principal payments on capital lease obligations and other debt (11,110 ) — (400 ) — (11,510 ) Financing costs associated with Credit Facility and senior unsecured notes (9 ) — — — (9 ) Windfall excess tax benefits related to share-based payments 739 — — — 739 Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options (1,461 ) — — — (1,461 ) Net cash flows used in financing activities (1) (256,315 ) — (400 ) — (256,715 ) Year Ended December 31, 2015 Outerwall Inc. Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations and Consolidation Reclassifications Total Effect of exchange rate changes on cash — — 2,829 — 2,829 Increase (decrease) in cash and cash equivalents (20,722 ) 1,433 (858 ) — (20,147 ) Cash and cash equivalents: Beginning of period 180,889 17,939 43,868 — 242,696 End of period $ 160,167 $ 19,372 $ 43,010 $ — $ 222,549 (1) During 2015 we discontinued our Redbox operations in Canada. 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, 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 loss (income) 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 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 ) Restructuring, impairment and related costs 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 of Credit Facility 400,000 — — — 400,000 Principal payments on Credit Facility (215,313 ) — — — (215,313 ) Financing costs associated with Credit Facility and senior unsecured notes (2,203 ) — — — (2,203 ) 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. |
Income Taxes from Continuing 48
Income Taxes from Continuing Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
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 2015 2014 2013 U.S. operations $ 121,940 $ 188,473 $ 259,057 Foreign operations 1,125 2,368 3,341 Total income from continuing operations before income taxes $ 123,065 $ 190,841 $ 262,398 |
Components of Income Tax Expense | The components of income tax expense from continuing operations were as follows: Year Ended December 31, Dollars in thousands 2015 2014 2013 Current: U.S. Federal $ 89,996 $ 69,117 $ 38,876 State and local 10,658 12,294 10,104 Foreign 469 415 (424 ) Total current 101,123 81,826 48,556 Deferred: U.S. Federal (27,641 ) (16,232 ) (3,642 ) State and local 380 427 (5,653 ) Foreign (243 ) 143 449 Total deferred (27,504 ) (15,662 ) (8,846 ) Total income tax expense $ 73,619 $ 66,164 $ 39,710 |
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, 2015 2014 2013 U.S Federal tax expense at statutory rates 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 5.8 4.1 3.9 Federal and state credits (1.6 ) (1.1 ) (0.9 ) Domestic production activities deduction (4.9 ) (3.6 ) (0.6 ) Goodwill Impairment 24.4 — — Recognition of outside basis differences — (1.1 ) (15.4 ) ecoATM option payments 0.2 1.4 0.7 Valuation allowance 0.2 — 2.3 Acquisition of ecoATM — — (9.3 ) Other 0.7 — (0.6 ) Effective tax rate 59.8 % 34.7 % 15.1 % |
Summary of Unrecognized Tax Benefits | The aggregate changes in the balance of unrecognized tax benefits were as follows: Dollars in thousands Year Ended December 31, 2015 2014 2013 Balance, beginning of the year $ 4,639 $ 2,781 $ 2,383 Additions based on tax positions related to the current year 1,837 1,836 824 Additions for tax positions related to prior years 527 806 18 Reductions for tax positions related to prior years (118 ) — (257 ) Reductions from lapse of applicable statute of limitations — (784 ) (49 ) Settlements — — (138 ) Balance, end of year $ 6,885 $ 4,639 $ 2,781 |
Summary 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, 2015 2014 Deferred tax assets: Income tax loss carryforwards $ 3,015 $ 5,690 Capital loss carryforwards 4,759 5,930 Credit carryforwards 3,482 2,929 Accrued liabilities and allowances 27,188 22,652 Stock-based compensation 9,065 11,901 Intangible assets 13,109 17,166 Other 5,720 3,776 Gross deferred tax assets 66,338 70,044 Less: Valuation Allowance (7,141 ) (6,898 ) Total deferred tax assets 59,197 63,146 Deferred tax liabilities: Property and equipment (42,984 ) (68,417 ) Product costs (46,699 ) (43,140 ) Total deferred tax liabilities (89,683 ) (111,557 ) Net deferred tax liabilities $ (30,486 ) $ (48,411 ) |
Change in Valuation Allowance | Change in Valuation Allowance Dollars in thousands Year Ended December 31, 2015 2014 2013 Increase in valuation allowance $ 243 $ — $ 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, 2015 Federal State Foreign Net operating loss carryforwards $ 23 $ 24,570 $ 7,082 Deferred tax assets related to net operating loss carryforwards $ 8 $ 1,118 $ 1,889 Years that net operating loss carryforwards will expire between 2029-2034 2017-2033 2033-2035 |
Summary of Tax Credit Carryforwards | U.S. State Tax Credits and Expiration Periods The following table shows our U.S. state tax credits before valuation allowances and related expiration periods. Dollars in thousands December 31, 2015 Amount Expiration U.S state tax credits: Illinois state tax credits $ 2,894 2017-2021 California U.S. state tax credits 588 Do not expire Total U.S. state tax credits $ 3,482 |
Organization and Business (Deta
Organization and Business (Details) $ in Thousands | Jul. 23, 2013USD ($) | Dec. 31, 2015USD ($)KioskLocations | Nov. 10, 2015USD ($) | Dec. 31, 2014USD ($) |
Property, plant, and equipment | $ 252 | |||
Goodwill | $ 473,417 | $ 559,307 | ||
Kiosks | Kiosk | 63,780 | |||
Locations | Locations | 54,860 | |||
Redbox | ||||
Goodwill | $ 138,743 | 138,743 | ||
Kiosks | Kiosk | 40,480 | |||
Locations | Locations | 33,060 | |||
Coinstar | ||||
Goodwill | $ 156,351 | 156,351 | ||
Kiosks | Kiosk | 20,930 | |||
Locations | Locations | 19,660 | |||
ecoATM | ||||
Goodwill | $ 178,323 | $ 264,213 | ||
Kiosks | Kiosk | 2,250 | |||
Locations | Locations | 2,020 | |||
All Other | ||||
Kiosks | Kiosk | 120 | |||
Locations | Locations | 120 | |||
ecoATM | ||||
Percentage of voting interests acquired | 77.00% | |||
Payments to acquire ecoATM | $ 262,900 | |||
Property, plant, and equipment | 23,200 | |||
Intangible assets | 41,400 | |||
Goodwill | $ 264,200 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Property, Plant and Equipment, Useful Life) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Coin Counting Kiosks [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Coin Counting Kiosks [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Redbox Kiosks [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Redbox Kiosks [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
ecoATM Kiosks [Member] [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computers, servers, and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computers, servers, and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office Equipment [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office Equipment [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Leased Vehicles [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Leased Vehicles [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 6 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 11 years |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Change To Two Class Method) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Change To Two Class Method [Line Items] | ||||
Income from continuing operations used in basic per share calculation | $ 48,117 | $ 120,748 | $ 217,215 | |
Income from continuing operations used in diluted per share calculation | $ 48,118 | $ 120,806 | $ 217,394 | |
Weighted average shares used for basic EPS (in shares) | 17,467 | 20,192 | 27,216 | |
Weighted average shares used for diluted EPS (in shares) | [1] | 17,487 | 20,503 | 28,169 |
Basic earnings per common share from continuing operations (in usd per share) | $ 2.75 | $ 5.98 | $ 7.98 | |
Diluted earnings per common share from continuing operations (in usd per share) | $ 2.75 | $ 5.89 | $ 7.72 | |
Scenario, Previously Reported [Member] | ||||
Change To Two Class Method [Line Items] | ||||
Income from continuing operations used in basic per share calculation | $ 124,677 | $ 222,688 | ||
Income from continuing operations used in diluted per share calculation | $ 124,677 | $ 222,688 | ||
Weighted average shares used for basic EPS (in shares) | 20,192 | 27,216 | ||
Weighted average shares used for diluted EPS (in shares) | 20,699 | 28,381 | ||
Basic earnings per common share from continuing operations (in usd per share) | $ 6.17 | $ 8.18 | ||
Diluted earnings per common share from continuing operations (in usd per share) | $ 6.02 | $ 7.85 | ||
Restatement Adjustment [Member] | ||||
Change To Two Class Method [Line Items] | ||||
Income from continuing operations used in basic per share calculation | $ (3,929) | $ (5,473) | ||
Income from continuing operations used in diluted per share calculation | $ (3,871) | $ (5,294) | ||
Weighted average shares used for basic EPS (in shares) | 0 | 0 | ||
Weighted average shares used for diluted EPS (in shares) | (196) | (212) | ||
Basic earnings per common share from continuing operations (in usd per share) | $ (0.19) | $ (0.20) | ||
Diluted earnings per common share from continuing operations (in usd per share) | $ (0.13) | $ (0.13) | ||
[1] | Participating securities were included in the calculation of diluted earnings per share using the two-class method, as this calculation was more dilutive than the calculation using the treasury stock method. |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (New Accounting Pronouncement, Early Adoption) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Prepaid expenses and other current assets | $ 51,368 | $ 39,819 |
Deferred income taxes assets - long term | 2,606 | 11,363 |
Deferred income taxes liabilities - current | 0 | |
Deferred income taxes liabilities - long term | $ 33,092 | 59,774 |
Scenario, Previously Reported [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Prepaid expenses and other current assets | 39,837 | |
Deferred income taxes assets - long term | 11,378 | |
Deferred income taxes liabilities - current | 21,432 | |
Deferred income taxes liabilities - long term | 38,375 | |
Restatement Adjustment [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Prepaid expenses and other current assets | (18) | |
Deferred income taxes assets - long term | (15) | |
Deferred income taxes liabilities - current | (21,432) | |
Deferred income taxes liabilities - long term | $ 21,399 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2013USD ($) | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)note$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Sep. 02, 2014USD ($) | Dec. 31, 2012USD ($) | ||
Cash and cash equivalents | $ 222,549,000 | $ 242,696,000 | $ 371,437,000 | $ 282,894,000 | |||
Cash equivalents | 2,700,000 | 900,000 | |||||
Cash identified for settling accrued payable to retailer partners | 83,300,000 | 81,700,000 | |||||
Direct operating benefit | [1] | $ (1,493,088,000) | $ (1,581,311,000) | $ (1,556,999,000) | |||
Content library, period of amortization | 1 year | ||||||
Earnings per share, basic | $ / shares | $ 2.46 | $ 5.09 | $ 6.22 | ||||
Earnings per share, diluted | $ / shares | $ 2.46 | $ 5.01 | $ 6.02 | ||||
Debt instrument, face amount | $ 200,000,000 | ||||||
Repayments of convertible debt | $ 0 | $ 51,149,000 | $ 172,211,000 | ||||
Loss on extinguishment of debt | (5,854,000) | 2,018,000 | 6,013,000 | ||||
Advertising expense | 15,200,000 | 11,800,000 | 11,700,000 | ||||
Unamortized deferred financing fees | [2] | 3,849,000 | $ 4,986,000 | ||||
Long-term assets | |||||||
Unamortized deferred financing fees | [2] | 3,849,000 | |||||
Change in Accounting Method Accounted for as Change in Estimate | |||||||
Direct operating benefit | $ 21,700,000 | $ 31,800,000 | |||||
Earnings per share, basic | $ / shares | $ 1.17 | ||||||
Earnings per share, diluted | $ / shares | $ 1.12 | ||||||
Convertible Notes | |||||||
Interest rate, per year | 4.00% | ||||||
Number of convertible senior note repurchased | note | 51,148 | ||||||
Repayments of convertible debt | $ 51,100,000 | ||||||
Loss on extinguishment of debt | $ 300,000 | ||||||
Common Stock | |||||||
Conversion of callable convertible debt, net of tax (in shares) | shares | 431,760 | 272,336 | |||||
UNITED STATES | |||||||
Cash and cash equivalents held in financial institutions | 46,200,000 | $ 66,500,000 | |||||
Foreign | |||||||
Cash and cash equivalents held in financial institutions | 9,000,000 | 11,600,000 | |||||
Play Pass | |||||||
Deferred revenue | $ 2,500,000 | $ 1,500,000 | |||||
[1] | “Direct operating” excludes depreciation and other of $118.7 million, $125.7 million and $129.1 million for 2015, 2014 and 2013, respectively. | ||||||
[2] | Deferred financing fees are recorded in other long-term assets in our Consolidated Balance Sheets and are amortized on a straight line basis over the life of the related loan. |
Business Combinations (Schedule
Business Combinations (Schedule of Recognized Identified Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Nov. 10, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Combinations [Abstract] | ||||
Total consideration transferred | $ 17,980 | |||
Assets acquired: | ||||
Accounts receivable | 67 | |||
Prepaid expenses and other current assets | 3,963 | |||
Property and equipment | 252 | |||
Intangible assets | 16,000 | |||
Total assets acquired | 20,282 | |||
Liabilities assumed: | ||||
Deferred revenue | (750) | |||
Deferred tax liabilities | (563) | |||
Total liabilities assumed | (1,313) | |||
Total net assets acquired | 18,969 | |||
Bargain purchase gain | $ 989 | $ 989 | $ 0 | $ 0 |
Business Combinations (Business
Business Combinations (Business Combination, Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Nov. 10, 2015 | |
Business Acquisition [Line Items] | ||
Purchase Price | $ 16,000 | |
Trade names | ||
Business Acquisition [Line Items] | ||
Purchase Price | $ 14,000 | |
Estimated Useful Life in Years | 10 years | |
Developed technology | ||
Business Acquisition [Line Items] | ||
Purchase Price | $ 2,000 | |
Estimated Useful Life in Years | 3 years |
Business Combinations (Revenue
Business Combinations (Revenue and Operating Loss from the Acquisition) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Business Combinations [Abstract] | |
Revenue | $ 13,269 |
Operating loss | $ 948 |
Business Combinations (Pro form
Business Combinations (Pro forma Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | ||
Pro-forma revenue | $ 2,264,467 | $ 2,378,508 |
Pro-forma income from continuing operations | $ 38,524 | $ 114,641 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) $ in Thousands | Nov. 10, 2015 | Oct. 29, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||||
Business acquisition, date of acquisition agreement | Oct. 29, 2015 | |||||
Business acquisition, name of acquired entity | Gazelle, Inc. | |||||
Business acquisition, effective date of acquisition | Nov. 10, 2015 | |||||
Bargain purchase gain | $ 989 | $ 989 | $ 0 | $ 0 | ||
Business combination, income tax rate used for pro forma | 5.80% | 4.10% | 3.90% | |||
Gazelle Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, income tax rate used for pro forma | 37.50% | |||||
General and administrative expense | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, acquisition related costs | $ 300 |
Prepaid Expenses and Other Cu59
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities (Schedule of Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities [Abstract] | ||
Spare parts | $ 9,780 | $ 13,643 |
Licenses | 6,394 | 5,881 |
Electronic devices inventory | 7,846 | 5,259 |
Income taxes receivable | 9,517 | 95 |
Prepaid rent | 1,043 | 1,446 |
DVD cases and labels | 1,371 | 1,330 |
Other | 15,417 | 12,165 |
Total prepaid and other current assets | $ 51,368 | $ 39,819 |
Prepaid Expenses and Other Cu60
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities (Schedule of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expenses and Other Current Assets and Other Accrued Liabilities [Abstract] | ||
Payroll related expenses | $ 40,676 | $ 33,343 |
Studio revenue share and other content related expenses | 28,964 | 23,226 |
Business taxes | 16,080 | 21,629 |
Insurance | 13,594 | 9,615 |
Deferred revenue | 11,201 | 6,995 |
Income taxes payable | 16 | 9,463 |
Accrued interest expense | 6,913 | 6,974 |
Accrued early lease termination and sublease expenses | 4,991 | 0 |
Service contract provider expenses | 4,070 | 4,191 |
Deferred rent expense | 1,728 | 6,162 |
Other | 13,204 | 15,528 |
Total other accrued liabilities | $ 141,437 | $ 137,126 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 1,391,545 | $ 1,411,917 |
Accumulated depreciation and amortization | (1,075,532) | (983,449) |
Property and equipment, net | 316,013 | 428,468 |
Kiosks and components | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 1,163,210 | 1,165,925 |
Computers, servers, and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 193,507 | 200,915 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 22,663 | 29,625 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 7,047 | 9,218 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 5,118 | $ 6,234 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ||
Accelerated depreciation related to SAMPLEit | $ 5,000 | |
Impairment of lease related assets | $ 7,440 | $ 32,732 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment (Note 6) | $ 85,900 | $ 85,890 | $ 0 | $ 0 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 559,307 | |
Accumulated impairment losses | (85,890) | |
Net goodwill | $ 473,417 | $ 559,307 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets (Goodwill by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | $ 559,307 | |||
Goodwill Impairment | $ (85,900) | (85,890) | $ 0 | $ 0 |
Goodwill, ending balance | 473,417 | 559,307 | ||
Redbox | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 138,743 | |||
Goodwill Impairment | 0 | |||
Goodwill, ending balance | 138,743 | 138,743 | ||
Coinstar | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 156,351 | |||
Goodwill Impairment | 0 | |||
Goodwill, ending balance | 156,351 | 156,351 | ||
ecoATM | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 264,213 | |||
Goodwill Impairment | (85,890) | |||
Goodwill, ending balance | $ 178,323 | $ 264,213 |
Goodwill and Other Intangible66
Goodwill and Other Intangible Assets (Gross Amount Of Other Intangible Assets And The Related Accumulated Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 67,097 | $ 64,691 |
Retailer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 53,295 | 53,295 |
Intangible assets, accumulated amortization | (27,212) | (23,200) |
Intangible assets, net | $ 26,083 | 30,095 |
Retailer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | |
Retailer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 10 years | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 36,000 | 34,000 |
Intangible assets, accumulated amortization | (16,544) | (9,633) |
Intangible assets, net | $ 19,456 | 24,367 |
Developed technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 3 years | |
Developed technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 20,000 | 6,000 |
Intangible assets, accumulated amortization | (3,133) | (1,700) |
Intangible assets, net | $ 16,867 | 4,300 |
Trade names | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | |
Trade names | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 10 years | |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 10,800 | 10,800 |
Intangible assets, accumulated amortization | (6,109) | (4,871) |
Intangible assets, net | $ 4,691 | $ 5,929 |
Other intangible assets | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 1 year | |
Other intangible assets | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 40 years |
Goodwill and Other Intangible67
Goodwill and Other Intangible Assets (Amortization Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets including discontinued operations | $ 13,594 | $ 14,692 | $ 10,933 |
Less: amortization included in discontinued operations | (44) | (38) | (26) |
Amortization of intangible assets | 13,550 | 14,654 | 10,907 |
Retailer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets including discontinued operations | 4,012 | 5,432 | 6,250 |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets including discontinued operations | 6,911 | 6,800 | 2,833 |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets including discontinued operations | 1,433 | 1,200 | 500 |
Other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets including discontinued operations | $ 1,238 | $ 1,260 | $ 1,350 |
Goodwill and Other Intangible68
Goodwill and Other Intangible Assets (Expected Future Amortization) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | $ 15,160 | |
2,017 | 15,160 | |
2,018 | 11,598 | |
2,019 | 6,213 | |
2,020 | 5,819 | |
Thereafter | 13,147 | |
Intangible assets, net | 67,097 | $ 64,691 |
Retailer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | 4,012 | |
2,017 | 4,012 | |
2,018 | 4,012 | |
2,019 | 4,012 | |
2,020 | 4,012 | |
Thereafter | 6,023 | |
Intangible assets, net | 26,083 | 30,095 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | 7,467 | |
2,017 | 7,467 | |
2,018 | 4,522 | |
2,019 | 0 | |
2,020 | 0 | |
Thereafter | 0 | |
Intangible assets, net | 19,456 | 24,367 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | 2,600 | |
2,017 | 2,600 | |
2,018 | 2,100 | |
2,019 | 1,400 | |
2,020 | 1,400 | |
Thereafter | 6,767 | |
Intangible assets, net | 16,867 | 4,300 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | 1,081 | |
2,017 | 1,081 | |
2,018 | 964 | |
2,019 | 801 | |
2,020 | 407 | |
Thereafter | 357 | |
Intangible assets, net | $ 4,691 | $ 5,929 |
Equity Method Investments (Capi
Equity Method Investments (Capital Contributions) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | 36 Months Ended | ||
Feb. 29, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
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Schedule of Equity Method Investments [Line Items] | |||||
Cash Contributions | $ 14,000 | $ 24,500 | $ 28,000 | $ 24,500 | $ 77,000 |
Equity Method Investments (Equi
Equity Method Investments (Equity Investments and Ownership Percentages) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Feb. 29, 2012 |
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Schedule of Equity Method Investments [Line Items] | ||
Ownership Percentage | 35.00% | |
SoloHealth | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 0.7 | |
Ownership Percentage | 10.00% |
Equity Method Investments (Sche
Equity Method Investments (Schedule of Income (Loss) From Equity Method Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||
Gain on previously held equity interest on ecoATM | $ 0 | $ 0 | $ 68,376 |
Proportionate share of net loss of equity method investees: | (800) | (26,323) | (45,973) |
Amortization of difference in carrying amount and underlying equity in Joint Venture | 0 | (2,411) | (2,475) |
Total income (loss) from equity method investments | (800) | (28,734) | 19,928 |
Redbox Instant By Verizon | |||
Schedule of Equity Method Investments [Line Items] | |||
Proportionate share of net loss of equity method investees: | 0 | (25,793) | (42,660) |
Pursuant Health and ecoATM | |||
Schedule of Equity Method Investments [Line Items] | |||
Proportionate share of net loss of equity method investees: | $ (800) | $ (530) | $ (3,313) |
Equity Method Investments (Summ
Equity Method Investments (Summarized Financial Information of Equity Method Investees) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Current assets | [1] | $ 3,457 | $ 3,408 |
Noncurrent assets | [1] | 13,394 | 20,376 |
Current liabilities | [1] | 5,888 | 7,321 |
Long-term liabilities | [1] | $ 22,811 | $ 18,754 |
[1] | Represents Pursuant Health, Inc. only.Statement of OperationsYear Ended December 31,Dollars in thousands2015 2014 2013Revenue$7,389 $29,963 $15,824Cost of sales and service$10,129 $68,732 $25,092Net loss from continuing operations$6,107 $140,919 $134,911 |
Equity Method Investments (Prop
Equity Method Investments (Proportionate Share of Joint Venture Summarized Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Revenue | $ 7,389 | $ 29,963 | $ 15,824 |
Cost of sales and service | 10,129 | 68,732 | 25,092 |
Net loss and loss from continuing operations | $ 6,107 | $ 140,919 | $ 134,911 |
Equity Method Investments (Narr
Equity Method Investments (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | 36 Months Ended | |||
Feb. 29, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Total extinguishment payment | $ 16,800 | |||||
Expense reimbursement payment | 11,800 | |||||
Extinguishment payment received from equity investment | $ 0 | 5,000 | $ 0 | |||
Redbox Instant By Verizon | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 35.00% | |||||
Payments to Acquire Interest in Joint Venture | $ 14,000 | $ 24,500 | $ 28,000 | $ 24,500 | $ 77,000 | |
SoloHealth | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 10.00% | |||||
Equity Method Investments | $ 700 |
Debt and Other Long-Term Liab75
Debt and Other Long-Term Liabilities (Schedule Of Debt And Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt | |||
Principal | $ 886,283 | $ 956,250 | |
Discount | (6,564) | (8,783) | |
Total | 879,719 | 947,467 | |
Less: current portion | (13,125) | (9,390) | |
Total long-term portion | 866,594 | 938,077 | |
Other Liabilities | |||
Capital Lease Obligations | 5,889 | 15,391 | |
Capital Lease Obligations, Current | (4,006) | (11,026) | |
Capital Lease Obligations, Noncurrent | 1,883 | 4,365 | |
Asset retirement obligations | 9,412 | 13,576 | |
Asset Retirement Obligation, Current | 0 | 0 | |
Asset Retirement Obligations, Noncurrent | 9,412 | 13,576 | |
Other long-term liabilities | 19,477 | 17,651 | |
Other Long-term Liabilities, Current | 0 | 0 | |
Other Long-term Liabilities, Noncurrent | 19,477 | 17,651 | |
Long Term Debt And Other Long Term Liabilities | 914,497 | 994,085 | |
Current portion of long-term debt and other long-term liabilities | (17,131) | (20,416) | |
Long-term debt and other long-term liabilities (Note 8) | 897,366 | 973,669 | |
Unamortized deferred financing fees | [1] | 3,849 | 4,986 |
Senior Notes | Senior Unsecured Notes due 2019 | |||
Debt | |||
Principal | 350,000 | 350,000 | |
Discount | (3,275) | (4,296) | |
Total | 346,725 | 345,704 | |
Less: current portion | 0 | 0 | |
Total long-term portion | 346,725 | 345,704 | |
Other Liabilities | |||
Unamortized deferred financing fees | [1] | 495 | 649 |
Senior Notes | 2021 Notes | |||
Debt | |||
Principal | 258,908 | 300,000 | |
Discount | (3,029) | (4,152) | |
Total | 255,879 | 295,848 | |
Less: current portion | 0 | 0 | |
Total long-term portion | 255,879 | 295,848 | |
Other Liabilities | |||
Unamortized deferred financing fees | [1] | 1,054 | 1,372 |
Credit Facility | Term Loans | |||
Debt | |||
Principal | 136,875 | 146,250 | |
Discount | (260) | (335) | |
Total | 136,615 | 145,915 | |
Less: current portion | (13,125) | (9,390) | |
Total long-term portion | 123,490 | 136,525 | |
Other Liabilities | |||
Unamortized deferred financing fees | [1] | 0 | 0 |
Credit Facility | Revolving Line of Credit | |||
Debt | |||
Principal | 140,500 | 160,000 | |
Discount | 0 | 0 | |
Total | 140,500 | 160,000 | |
Less: current portion | 0 | 0 | |
Total long-term portion | 140,500 | 160,000 | |
Other Liabilities | |||
Unamortized deferred financing fees | [1] | $ 2,300 | $ 2,965 |
[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 Long-Term Liab76
Debt and Other Long-Term Liabilities (Schedule Of Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | |||
Cash interest expense | $ 45,507 | $ 41,562 | $ 25,289 |
Non-cash interest expense: | |||
Amortization of debt discount | 1,731 | 2,606 | 4,674 |
Amortization of deferred financing fees | 1,030 | 1,510 | 1,720 |
Other | 0 | 0 | (550) |
Total non-cash interest expense | 2,761 | 4,116 | 5,844 |
Total cash and non-cash interest expense | 48,268 | 45,678 | 31,133 |
(Gain) loss from early extinguishment of debt | (5,854) | 2,018 | 6,013 |
Total interest expense | $ 42,414 | $ 47,696 | $ 37,146 |
Debt and Other Long-Term Liab77
Debt and Other Long-Term Liabilities (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Total | $ 886,283 | $ 956,250 |
Credit Facility | Term Loans | ||
Line of Credit Facility [Line Items] | ||
2,016 | 13,125 | |
2,017 | 15,000 | |
2,018 | 18,750 | |
2,019 | 90,000 | |
Total | $ 136,875 | $ 146,250 |
Debt and Other Long-Term Liab78
Debt and Other Long-Term Liabilities (Schedule of Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | ||||
Tenant improvement and deferred rent and other | $ 12,592 | $ 13,012 | ||
Unrecognized tax benefit | 6,885 | 4,639 | $ 2,781 | $ 2,383 |
Total other long-term liabilities | $ 19,477 | $ 17,651 |
Debt and Other Long-Term Liab79
Debt and Other Long-Term Liabilities (Narrative) (Details) | Jun. 09, 2014USD ($) | Mar. 12, 2013USD ($) | Dec. 31, 2015USD ($)note | Dec. 31, 2014USD ($)noteshares | Dec. 31, 2013USD ($)shares | Sep. 02, 2014USD ($) |
Debt Instrument [Line Items] | ||||||
Principal amount of debt | $ 200,000,000 | |||||
Proceeds from issuance of senior unsecured notes | $ 0 | $ 295,500,000 | $ 343,769,000 | |||
Gain (loss) from early extinguishment of debt | 5,854,000 | (2,018,000) | (6,013,000) | |||
Conversion of debt, cash | $ 0 | $ 51,149,000 | $ 172,211,000 | |||
Senior Notes | Senior Unsecured Notes due 2019 | ||||||
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 | 2021 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | $ 300,000,000 | |||||
Interest rate, per year | 5.875% | |||||
Proceeds from issuance of senior unsecured notes | $ 294,000,000 | |||||
Debt Instrument, Repurchase Date | Dec. 15, 2015 | |||||
Number of Senior Notes Repurchased | note | 41,092 | |||||
Debt Instrument, Repurchased Face Amount | $ 41,100,000 | |||||
Debt Instrument, Repurchase Amount | 34,600,000 | |||||
Gain (loss) from early extinguishment of debt | $ 5,900,000 | |||||
Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on amounts outstanding under the credit facility | 2.29% | 1.92% | ||||
Convertible Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, per year | 4.00% | |||||
Gain (loss) from early extinguishment of debt | $ (300,000) | |||||
Number of notes retired | note | 51,148 | |||||
Conversion of debt, cash | $ 51,100,000 | |||||
Revolving Line of Credit | Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Gain (loss) from early extinguishment of debt | $ (1,700,000) | |||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | |||||
Sublimit for issuance of letters of credit | 75,000,000 | |||||
Sublimit for swingline loans | 50,000,000 | |||||
Sublimit for loans in certain foreign countries | 75,000,000 | |||||
Line of credit facility, option to increase borrowing capacity | 200,000,000 | |||||
Term Loans | Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | |||||
Common Stock | ||||||
Debt Instrument [Line Items] | ||||||
Conversion of callable convertible debt, net of tax (in shares) | shares | 431,760 | 272,336 |
Repurchases of Common Stock (Na
Repurchases of Common Stock (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Feb. 03, 2015 | |
Accelerated Share Repurchases [Line Items] | ||
Additional repurchase program, authorized amount | $ 250,000,000 | |
Tender Offer | ||
Accelerated Share Repurchases [Line Items] | ||
Professional fees paid | $ 3,700,000 |
Repurchases of Common Stock (St
Repurchases of Common Stock (Stock Repurchase Program - 2015) (Details) - USD ($) | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Feb. 03, 2015 | |
Summary Of Authorized Stock Repurchases [Roll Forward] | |||||
Authorized repurchase - as of January 1, 2015 | $ 163,655,000 | ||||
Additional board authorization | $ 250,000,000 | ||||
Proceeds from the exercise of stock options | 2,552,000 | ||||
Repurchases of common stock | (159,800,000) | $ (545,140,000) | $ (195,004,000) | $ (896,175,000) | |
Authorized repurchase - as of December 31, 2015 | $ 256,407,000 | $ 163,655,000 | $ 256,407,000 |
Repurchases of Common Stock (82
Repurchases of Common Stock (Stock Repurchase Program 2013 - 2015) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | ||
Accelerated Share Repurchases [Line Items] | |||||
Number of shares repurchased (in shares) | 2,514,139 | 7,925,227 | 3,306,433 | 13,745,799 | |
Average price per share (in usd per share) | $ 63.56 | $ 68.31 | $ 58.98 | $ 65.20 | |
Repurchases of common stock | $ 159,800 | $ 545,140 | $ 195,004 | $ 896,175 | |
Repurchases of common stock, excluding fees and expenses | $ 541,371 | ||||
Open Market Share Repurchase | |||||
Accelerated Share Repurchases [Line Items] | |||||
Number of shares repurchased (in shares) | 2,633,526 | ||||
Average price per share (in usd per share) | $ 64.77 | ||||
Repurchases of common stock | $ 170,582 | ||||
Tender Offer | |||||
Accelerated Share Repurchases [Line Items] | |||||
Number of shares repurchased (in shares) | [1] | 5,291,701 | |||
Average price per share (in usd per share) | [1] | $ 70.07 | |||
Repurchases of common stock | [1] | $ 370,789 | |||
[1] | Fees and expenses totaling $3.7 million associated with the tender offer do not impact the repurchase program approved by our Board, are excluded from the total purchase price shown here and were recorded as part of the cost of treasury stock in our Consolidated Balance Sheets. |
Share-Based Payments (Summary o
Share-Based Payments (Summary of Grant Information) (Details) shares in Thousands | Dec. 31, 2015shares |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unissued common stock reserved for issuance under all plans | 1,034 |
Shares available for future grants | 979 |
Share-Based Payments (Schedule
Share-Based Payments (Schedule Of Information Regarding Share-Based Payments) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payments expense | $ 17,377 | $ 13,384 | $ 16,831 |
Tax benefit on share-based payments expense | $ 6,736 | $ 5,134 | $ 6,392 |
Per share weighted average grant date fair value of stock options granted | $ 0 | $ 0 | $ 53.90 |
Per share weighted average grant date fair value of restricted stock granted | $ 66.67 | $ 71.37 | $ 53.94 |
Total intrinsic value of stock options exercised | $ 1,061 | $ 3,263 | $ 10,567 |
Grant date fair value of restricted stock vested | 12,631 | 13,036 | 12,641 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payments expense | 293 | 803 | 1,566 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payments expense | 12,102 | 11,214 | 10,504 |
Content Arrangements | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payments expense | $ 4,982 | $ 1,367 | $ 4,761 |
Share-Based Payments (Schedul85
Share-Based Payments (Schedule Of Unrecognized Compensation Cost And Weighted-Average Remaining Life) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Share-Based Payments Expense | $ 20,271 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Share-Based Payments Expense | $ 149 |
Weighted-Average Remaining Life | 10 months 24 days |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Share-Based Payments Expense | $ 19,032 |
Weighted-Average Remaining Life | 2 years 2 months 12 days |
Content Arrangements | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Share-Based Payments Expense | $ 1,090 |
Weighted-Average Remaining Life | 9 months 22 days |
Share-Based Payments (Summary86
Share-Based Payments (Summary Of Stock Option Activity) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, Beginning of year, shares | shares | 128 |
Granted, shares | shares | 0 |
Exercised, shares | shares | (49) |
Cancelled, expired or forfeited, shares | shares | (24) |
Outstanding, Ending balance, shares | shares | 55 |
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 | $ / shares | $ 52.59 |
Granted, weighted average exercise price | $ / shares | 0 |
Exercised, weighted average exercise price | $ / shares | 52.10 |
Cancelled, expired or forfeited, weighted average exercise price | $ / shares | 53.99 |
Outstanding, Ending balance, weighted average exercise price | $ / shares | $ 52.40 |
Share-Based Payments (Schedul87
Share-Based Payments (Schedule Of Information Regarding Stock Options Outstanding) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options outstanding, Number | 55 | 128 |
Options outstanding, weighted average per share exercise price | $ 52.40 | $ 52.59 |
Options outstanding, aggregate intrinsic value | $ 35 | |
Options outstanding, weighted average remaining contractual term (in years) | 6 years 3 months 28 days | |
Options exercisable, Number | 39 | |
Options exercisable, weighted average per share exercise price | $ 51.67 | |
Options exercisable, aggregate intrinsic value | $ 35 | |
Options exercisable, weighted average remaining contractual term (in years) | 6 years 1 month 2 days |
Share-Based Payments (Summary88
Share-Based Payments (Summary Of Restricted Stock Award Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 609 | ||
Granted (shares) | 352 | ||
Vested, shares | (188) | ||
Forfeited, shares | (217) | ||
NON-VESTED, end of period, shares | 556 | 609 | |
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 | $ 62.35 | ||
Per share weighted average grant date fair value of restricted stock granted | 66.67 | $ 71.37 | $ 53.94 |
Vested, weighted average grant date fair value | 59.09 | ||
Forfeited, weighted average grant date fair value | 65.26 | ||
NON-VESTED, end of period, weighted average grant date fair value | $ 65.86 | $ 62.35 |
Share-Based Payments (Schedul89
Share-Based Payments (Schedule Of Information Related To Restricted Stock Granted As Part Of DVD Arrangements) (Details) - shares | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jan. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (shares) | 352,000 | ||||||
Vested (shares) | 188,000 | ||||||
Unvested (shares) | 556,000 | 556,000 | 609,000 | ||||
Sony | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (shares) | 25,000 | 243,348 | [1] | ||||
Vested (shares) | 25,000 | 243,348 | [1] | ||||
Unvested (shares) | [1] | 0 | 0 | ||||
Paramount | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (shares) | 50,000 | 350,000 | [2],[3] | ||||
Vested (shares) | 95,000 | 50,000 | 350,000 | [2],[3] | |||
Unvested (shares) | [2],[3] | 0 | 0 | ||||
[1] | Includes 25,000 shares granted and fully vested in the fourth quarter of 2015 due to a one-year contract extension executed in 2015. | ||||||
[2] | Includes 50,000 shares granted and fully vested in the first quarter of 2015 due to a one-year contract extension executed in 2015. | ||||||
[3] | Includes 95,000 shares that vested on January 1, 2015. |
Share-Based Payments (Rights to
Share-Based Payments (Rights to Receive Cash) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining total expected expense | $ 20,271 |
ecoATM | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2,016 | 1,868 |
2,017 | 284 |
Remaining total expected expense | $ 2,152 |
Share-Based Payments (Narrative
Share-Based Payments (Narrative) (Details) - USD ($) $ in Thousands | Jul. 23, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Share-based payments expense | $ 17,377 | $ 13,384 | $ 16,831 | |
ecoATM | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Fair value of original and replacement awards | $ 32,100 | |||
Replacement awards attributable to pre-combination services | $ 1,400 | |||
Share-based payments expense | 4,400 | 13,300 | 8,700 | |
Content Arrangements | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Share-based payments expense | 4,982 | 1,367 | 4,761 | |
Stock Options | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Share-based payments expense | 293 | 803 | 1,566 | |
Restricted Stock | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Share-based payments expense | $ 12,102 | $ 11,214 | $ 10,504 | |
Paramount | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Shares of restricted stock to be issued in the first quarter of 2016 | 50,000 | |||
Awards Granted To Employees And Executives | Restricted Stock | ||||
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 | Restricted Stock | ||||
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 | ||||
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 | Restricted Stock | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Share-based payment award vesting period, years | 3 years |
Restructuring (Components of Re
Restructuring (Components of Restructuring Changes) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Long-term Purchase Commitment, Settlement Cost | $ 8,500 |
Restructuring Charges | 19,713 |
Restructuring and related costs | 522 |
Restructuring Charges, Continuing and Discontinued Operations | 20,235 |
Redbox | |
Restructuring Cost and Reserve [Line Items] | |
Severance | 4,236 |
Lease termination and related costs (excluding related asset impairments) | 4,958 |
Long-term Purchase Commitment, Settlement Cost | 7,021 |
Restructuring Charges | 16,215 |
Coinstar | |
Restructuring Cost and Reserve [Line Items] | |
Severance | 492 |
Lease termination and related costs (excluding related asset impairments) | 100 |
Long-term Purchase Commitment, Settlement Cost | 1,369 |
Restructuring Charges | 1,961 |
ecoATM | |
Restructuring Cost and Reserve [Line Items] | |
Severance | 602 |
Lease termination and related costs (excluding related asset impairments) | 0 |
Long-term Purchase Commitment, Settlement Cost | 85 |
Restructuring Charges | 687 |
All Other | |
Restructuring Cost and Reserve [Line Items] | |
Severance | 822 |
Lease termination and related costs (excluding related asset impairments) | 2 |
Long-term Purchase Commitment, Settlement Cost | 26 |
Restructuring Charges | $ 850 |
Restructuring (Narratives) (Det
Restructuring (Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring Charges and Lease Termination Costs | $ 27,675 | |
Impairment of long-lived assets to be disposed of | 7,440 | $ 32,732 |
Restructuring Charges, Continuing and Discontinued Operations | $ 20,235 |
Restructuring (Components of 94
Restructuring (Components of Restructuring Changes from Continuing Operation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring Charges, Continuing and Discontinued Operations | $ 20,235 | ||
Impairment of long-lived assets to be disposed of | 7,440 | $ 32,732 | |
Restructuring Charges and Lease Termination Costs | 27,675 | ||
Less: restructuring costs included in discontinued operations | (522) | ||
Restructuring and related costs (Note 11) | $ 27,153 | $ 557 | $ 4,495 |
Restructuring (Schedule of Begi
Restructuring (Schedule of Beginning and End Liability Balance and Expense by Type) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges, Continuing and Discontinued Operations | $ 20,235 | |
Long-term Purchase Commitment, Settlement Cost | 8,500 | |
Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 0 | |
Restructuring Charges, Continuing and Discontinued Operations | 6,284 | [1] |
Restructuring and Related Cost, Expected Cost | 0 | |
Payments for Restructuring | (4,899) | |
Restructuring Reserve | 1,385 | |
Contract Termination Cost | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 0 | |
Restructuring Charges, Continuing and Discontinued Operations | 5,138 | |
Restructuring and Related Cost, Expected Cost | 5,260 | [2] |
Payments for Restructuring | (5,407) | |
Restructuring Reserve | 4,991 | |
Other Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 0 | |
Restructuring Charges, Continuing and Discontinued Operations | 8,813 | |
Restructuring and Related Cost, Expected Cost | 0 | |
Payments for Restructuring | (8,813) | |
Restructuring Reserve | $ 0 | |
[1] | Other includes an $8.5 million one-time payment to settle an outstanding purchase commitment. | |
[2] | Deferred rent liabilities related to the early lease termination that were reclassified to present the outstanding liability related to the terminated leases. |
Restructuring (Restructuring an
Restructuring (Restructuring and Related Costs from 2013 Restructuring Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | $ 1,147 | $ 6,804 |
Cumulative as of end of period | 7,951 | |
Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 557 | 4,495 |
Cumulative as of end of period | 5,052 | |
Redbox | Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 534 | 3,771 |
Cumulative as of end of period | 4,305 | |
Coinstar | Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 23 | 724 |
Cumulative as of end of period | 747 | |
Discontinued Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 590 | $ 2,309 |
Cumulative as of end of period | $ 2,899 |
Discontinued Operations (Compon
Discontinued Operations (Components of Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued operation, revenue | $ 1,972 | $ 11,517 | $ 11,215 |
Total loss before income tax | (13,605) | (24,966) | (74,225) |
Discontinued operation, income tax benefit | 8,496 | 6,907 | 26,329 |
Loss from discontinued operations, net of tax | (5,109) | (18,059) | (47,896) |
Redbox Canada | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued operation, revenue | 1,972 | 11,417 | 6,816 |
Total loss before income tax | (13,605) | (23,707) | (19,830) |
Discontinued operation, income tax benefit | 8,496 | 6,416 | 5,233 |
Loss from discontinued operations, net of tax | (5,109) | (17,291) | (14,597) |
Certain New Ventures | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued operation, revenue | 0 | 100 | 4,399 |
Total loss before income tax | 0 | (1,259) | (54,395) |
Discontinued operation, income tax benefit | 0 | 491 | 21,096 |
Loss from discontinued operations, net of tax | $ 0 | $ (768) | $ (33,299) |
Discontinued Operations (Income
Discontinued Operations (Income Statement Disclosure of Discontinued Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | $ 1,972 | $ 11,517 | $ 11,215 |
Restructuring and related costs | 522 | ||
Amortization of intangible assets | 44 | 38 | 26 |
Pretax loss of discontinued operations related to major classes of pretax loss | (13,605) | (24,966) | (74,225) |
Income tax benefit | 8,496 | 6,907 | 26,329 |
Net loss on discontinued operations | (5,109) | (18,059) | (47,896) |
Redbox Canada | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 1,972 | 11,417 | 6,816 |
Direct operating | 4,533 | 20,027 | 18,278 |
Marketing | 112 | 2,947 | 2,175 |
Research and development | 0 | 0 | 2 |
General and administrative | 117 | 1,078 | 3,088 |
Restructuring and related costs | 522 | 0 | 0 |
Depreciation and other | 5,857 | 7,354 | 2,760 |
Amortization of intangible assets | 44 | 38 | 26 |
Other expense, net | (4,392) | (3,680) | (317) |
Pretax loss of discontinued operations related to major classes of pretax loss | (13,605) | (23,707) | (19,830) |
Income tax benefit | 8,496 | 6,416 | 5,233 |
Net loss on discontinued operations | $ (5,109) | $ (17,291) | $ (14,597) |
Discontinued Operations (Signif
Discontinued Operations (Significant Operating and Investing Cash Flow Activity of Discontinued Operations) (Details) - Redbox Canada - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net loss on discontinued operations | $ (5,109) | $ (17,291) | $ (14,597) |
Depreciation and amortization | 5,901 | 7,392 | 2,786 |
Content library | 3,328 | (787) | (410) |
Prepaid and other current assets | 1,329 | (293) | (516) |
Accounts payable | (2,663) | 627 | 644 |
Accrued payables to retailers | (155) | (175) | 247 |
Other accrued liabilities | (806) | (122) | 506 |
Net cash flows from operating activities | 1,825 | (10,649) | (11,340) |
Purchase of property, plant and equipment | (292) | (5,494) | (9,330) |
Total cash flows used in investing activities | $ (292) | $ (5,494) | $ (9,330) |
Discontinued Operations (Discon
Discontinued Operations (Discontinuation of Certain New Ventures) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($)concept | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment of long-lived assets to be disposed of | $ 7,440 | $ 32,732 |
Number of discontinued concepts | concept | 4 | |
Rubi | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment of long-lived assets to be disposed of | $ 21,317 | |
Orango | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment of long-lived assets to be disposed of | 5,551 | |
Crisp Market | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment of long-lived assets to be disposed of | 289 | |
Star Studio | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment of long-lived assets to be disposed of | 2,786 | |
Corporate Assets | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment of long-lived assets to be disposed of | $ 2,789 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Earnings Per Share [Abstract] | ||||
Income from continuing operations | $ 49,446 | $ 124,677 | $ 222,688 | |
Loss from discontinued operations, net of tax | (5,109) | (18,059) | (47,896) | |
Net income | 44,337 | 106,618 | 174,792 | |
Dividends and undistributed income allocated to participating shares | (1,329) | (3,929) | (5,473) | |
Income from continuing operations to common shares - basic | 48,117 | 120,748 | 217,215 | |
Effect of reallocating undistributed income from continuing operations to participating shares | 1 | 58 | 179 | |
Income from continuing operations to common shares - diluted | $ 48,118 | $ 120,806 | $ 217,394 | |
Weighted average common shares - basic (in shares) | 17,467 | 20,192 | 27,216 | |
Dilutive effect of share-based payment awards (in shares) | 20 | 81 | 235 | |
Dilutive effect of convertible debt (in shares) | 0 | 230 | 718 | |
Weighted average shares used for diluted EPS (in shares) | [1] | 17,487 | 20,503 | 28,169 |
Basic earnings (loss) per common share: | ||||
Continuing operations (in usd per share) | $ 2.75 | $ 5.98 | $ 7.98 | |
Discontinued operations (in usd per share) | (0.29) | (0.89) | (1.76) | |
Basic earnings per share (in usd per share) | 2.46 | 5.09 | 6.22 | |
Diluted earnings (loss) per common share: | ||||
Continuing operations (in usd per share) | 2.75 | 5.89 | 7.72 | |
Discontinued operations (in usd per share) | (0.29) | (0.88) | (1.70) | |
Diluted earnings per share (in usd per share) | $ 2.46 | $ 5.01 | $ 6.02 | |
Stock options and share-based awards not included in diluted EPS calculation because their effect would be antidilutive | 7 | 11 | 13 | |
[1] | Participating securities were included in the calculation of diluted earnings per share using the two-class method, as this calculation was more dilutive than the calculation using the treasury stock method. |
Business Segments and Enterp102
Business Segments and Enterprise-Wide Information (Schedule Of Segment Performance) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 2,193,211 | $ 2,291,586 | $ 2,299,785 | ||
Expenses: | |||||
Direct operating | [1] | 1,493,088 | 1,581,311 | 1,556,999 | |
Marketing | 35,674 | 35,293 | 30,227 | ||
Research and development | 7,198 | 13,047 | 13,082 | ||
General and administrative | 190,393 | 190,496 | 215,798 | ||
Restructuring and related costs (Note 11) | 27,153 | 557 | 4,495 | ||
Goodwill impairment (Note 6) | $ 85,900 | 85,890 | 0 | 0 | |
Segment operating income (loss) | 353,815 | 470,882 | 479,184 | ||
Less: depreciation and amortization | (184,940) | (202,478) | (200,308) | ||
Operating income | 168,875 | 268,404 | 278,876 | ||
Loss from equity method investments, net | (800) | (28,734) | 19,928 | ||
Interest expense, net | (42,353) | (47,644) | (32,807) | ||
Other, net | (2,657) | (1,185) | (3,599) | ||
Income from continuing operations before income taxes | 123,065 | 190,841 | 262,398 | ||
Redbox | |||||
Expenses: | |||||
Goodwill impairment (Note 6) | 0 | ||||
Coinstar | |||||
Expenses: | |||||
Goodwill impairment (Note 6) | 0 | ||||
ecoATM | |||||
Expenses: | |||||
Goodwill impairment (Note 6) | 85,890 | ||||
Operating segments | Redbox | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,760,899 | 1,881,718 | 1,967,715 | ||
Expenses: | |||||
Direct operating | 1,213,744 | 1,318,509 | 1,365,368 | ||
Marketing | 19,804 | 20,969 | 20,835 | ||
Research and development | 0 | 120 | 76 | ||
General and administrative | 129,013 | 135,554 | 160,863 | ||
Restructuring and related costs (Note 11) | 23,540 | 534 | 3,771 | ||
Goodwill impairment (Note 6) | 0 | ||||
Segment operating income (loss) | 374,798 | 406,032 | 416,802 | ||
Less: depreciation and amortization | (118,902) | (149,236) | (159,851) | ||
Operating income | 255,896 | 256,796 | 256,951 | ||
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 | 255,896 | 256,796 | 256,951 | ||
Operating segments | Coinstar | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 318,611 | 315,628 | 300,218 | ||
Expenses: | |||||
Direct operating | 159,211 | 161,214 | 158,562 | ||
Marketing | 5,566 | 6,346 | 6,244 | ||
Research and development | 0 | 531 | 6,962 | ||
General and administrative | 31,561 | 26,989 | 25,220 | ||
Restructuring and related costs (Note 11) | 2,076 | 23 | 724 | ||
Goodwill impairment (Note 6) | 0 | ||||
Segment operating income (loss) | 120,197 | 120,525 | 102,506 | ||
Less: depreciation and amortization | (31,871) | (35,471) | (33,921) | ||
Operating income | 88,326 | 85,054 | 68,585 | ||
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 | 88,326 | 85,054 | 68,585 | ||
Operating segments | ecoATM | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 113,558 | 94,187 | 31,824 | ||
Expenses: | |||||
Direct operating | 113,141 | 92,182 | 27,271 | ||
Marketing | 8,481 | 3,513 | 938 | ||
Research and development | 5,545 | 5,691 | 2,772 | ||
General and administrative | 10,875 | 12,773 | 7,868 | ||
Restructuring and related costs (Note 11) | 687 | 0 | 0 | ||
Goodwill impairment (Note 6) | 85,890 | ||||
Segment operating income (loss) | (111,061) | (19,972) | (7,025) | ||
Less: depreciation and amortization | (26,382) | (17,031) | (6,077) | ||
Operating income | (137,443) | (37,003) | (13,102) | ||
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 | (137,443) | (37,003) | (13,102) | ||
Operating segments | All Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 143 | 53 | 28 | ||
Expenses: | |||||
Direct operating | 4,431 | 2,821 | 2,162 | ||
Marketing | 1,128 | 1,272 | 651 | ||
Research and development | (84) | 2,854 | 1,897 | ||
General and administrative | 7,188 | 3,522 | 7,683 | ||
Restructuring and related costs (Note 11) | 850 | 0 | 0 | ||
Goodwill impairment (Note 6) | 0 | ||||
Segment operating income (loss) | (13,370) | (10,416) | (12,365) | ||
Less: depreciation and amortization | (7,785) | (740) | (459) | ||
Operating income | (21,155) | (11,156) | (12,824) | ||
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 | (21,155) | (11,156) | (12,824) | ||
Corporate unallocated | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | 0 | 0 | ||
Expenses: | |||||
Direct operating | 2,561 | 6,585 | 3,636 | ||
Marketing | 695 | 3,193 | 1,559 | ||
Research and development | 1,737 | 3,851 | 1,375 | ||
General and administrative | 11,756 | 11,658 | 14,164 | ||
Restructuring and related costs (Note 11) | 0 | 0 | 0 | ||
Goodwill impairment (Note 6) | 0 | ||||
Segment operating income (loss) | (16,749) | (25,287) | (20,734) | ||
Less: depreciation and amortization | 0 | 0 | 0 | ||
Operating income | (16,749) | (25,287) | (20,734) | ||
Loss from equity method investments, net | (800) | (28,734) | 19,928 | ||
Interest expense, net | (42,353) | (47,644) | (32,807) | ||
Other, net | (2,657) | (1,185) | (3,599) | ||
Income from continuing operations before income taxes | $ (62,559) | $ (102,850) | $ (37,212) | ||
[1] | “Direct operating” excludes depreciation and other of $118.7 million, $125.7 million and $129.1 million for 2015, 2014 and 2013, respectively. |
Business Segments and Enterp103
Business Segments and Enterprise-Wide Information (Schedule Of Contributions By Major Customers) (Details) - Customer Concentration Risk - Sales Revenue, Net | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Wal-Mart Stores Inc. | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue contributed by major customers | 16.60% | 15.50% | 15.20% |
Walgreen Co. | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue contributed by major customers | 13.40% | 13.80% | 14.70% |
The Kroger Company | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue contributed by major customers | 9.80% | 9.80% | 10.00% |
Business Segments and Enterp104
Business Segments and Enterprise-Wide Information (Schedule of Revenue and Long-Lived Assets by Geographic Location) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 2,193,211 | $ 2,291,586 | $ 2,299,785 |
Long-Lived Assets | 862,583 | 1,060,697 | 1,178,630 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 2,145,887 | 2,242,753 | 2,254,790 |
Long-Lived Assets | 848,450 | 1,027,271 | 1,140,224 |
Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 47,324 | 48,833 | 44,995 |
Long-Lived Assets | $ 14,133 | $ 33,426 | $ 38,406 |
Fair Value (Assets And Liabilit
Fair Value (Assets And Liabilities Measured At Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market demand accounts and investment grade fixed income securities | $ 2,700 | $ 900 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market demand accounts and investment grade fixed income securities | 2,743 | 916 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
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 | Fair Value, Inputs, Level 3 | ||
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 ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Dec. 31, 2011 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 09, 2011 | |
Fair Value Disclosure [Line Items] | ||||||
Proceeds from Collection of Notes Receivable | $ 24.8 | |||||
Benefit from Release of Indemnification Related Reserve | $ 2.5 | |||||
Notes Receivable | ||||||
Fair Value Disclosure [Line Items] | ||||||
Market discount rate | 18.00% | |||||
Money Transfer Business | ||||||
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 | ||||||
Fair Value Disclosure [Line Items] | ||||||
Asset Impairment Charges | $ 2.8 | |||||
Fair Value, Inputs, Level 2 | Senior Notes | Senior Unsecured Notes due 2019 | ||||||
Fair Value Disclosure [Line Items] | ||||||
Estimated fair value of senior unsecured notes | $ 312 | $ 350 | ||||
Fair Value, Inputs, Level 2 | Senior Notes | 2021 Notes | ||||||
Fair Value Disclosure [Line Items] | ||||||
Estimated fair value of senior unsecured notes | $ 213 | $ 300 |
Commitments and Contingencie107
Commitments and Contingencies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015USD ($)ft²Quantityshares | Sep. 30, 2015shares | Dec. 31, 2015USD ($)ft²Quantityshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Long-term Purchase Commitment [Line Items] | |||||
Long-term Purchase Commitment, Settlement Cost | $ 8,500,000 | ||||
Purchase commitments | $ 24,500,000 | ||||
Shares of restricted stock issued during the fourth quarter of 2015 | shares | 352,000 | ||||
Resolve of loss contingency related to a supply agreement | $ 11,400,000 | ||||
Pending Litigation [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Loss contingency accrual | $ 0 | $ 0 | |||
Standby Letters of Credit [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Number of irrevocable standby letters of credit | Quantity | 5 | 5 | |||
Maximum capacity to guarantee under existing letters of credit | $ 6,500,000 | $ 6,500,000 | |||
Irrevocable standby letters of credit, amount outstanding | $ 0 | $ 0 | |||
Manufacturing and Service Agreement as Part of Asset Acquisition [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Purchase obligation, term | 5 years | ||||
Minimum margin to be paid | $ 25,000,000 | ||||
Purchases, Margin Reduction of Commitment Amount | 400,000 | $ 2,100,000 | 7,100,000 | ||
Long-term Purchase Commitment, Settlement Cost | 8,500,000 | ||||
Long-term Purchase Commitment, Settlement of Remaining Balance | $ 15,400,000 | ||||
Content Arrangements | Paramount | |||||
Long-term Purchase Commitment [Line Items] | |||||
Shares of restricted stock to be issued in the first quarter of 2016 | shares | 50,000 | ||||
Content Arrangements | Sony | |||||
Long-term Purchase Commitment [Line Items] | |||||
Shares of restricted stock issued during the fourth quarter of 2015 | shares | 25,000 | ||||
Operating Lease [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Lease Extension Period | 5 years | ||||
New operating lease square feet | ft² | 16,085 | 16,085 | |||
Rent expense, net of sublease income under operating lease agreements | $ 18,000,000 | $ 16,800,000 | $ 12,300,000 |
Commitments and Contingencie108
Commitments and Contingencies (Schedule of Capital Leased Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
Gross property and equipment | $ 26,394 | $ 41,336 |
Accumulated depreciation | (20,735) | (26,831) |
Net property and equipment | $ 5,659 | $ 14,505 |
Commitments and Contingencie109
Commitments and Contingencies (Schedule of Minimum Lease Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 4,144 | |
2,017 | 1,011 | |
2,018 | 429 | |
2,019 | 305 | |
2,020 | 209 | |
Thereafter | 123 | |
Total minimum lease commitments | 6,221 | |
Capital Leases, Future Minimum Sublease Rentals | 0 | |
Capital Leases, Future Minimum Payments Due, Net Of Sublease Rentals | 6,221 | |
Less: amounts representing interest | (332) | |
Present value of capital lease obligations | 5,889 | |
Less: Current portion of capital lease obligations | (4,006) | $ (11,026) |
Long-term portion of capital lease obligations | 1,883 | $ 4,365 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,016 | 18,969 | |
2,017 | 13,445 | |
2,018 | 10,215 | |
2,019 | 7,986 | |
2,020 | 4,936 | |
Thereafter | 7,132 | |
Total minimum lease commitments | 62,683 | |
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | (1,332) | |
Operating Leases, Future Minimum Payments Due, Net Of Sublease Rentals | $ 61,351 |
Commitments and Contingencie110
Commitments and Contingencies (Summary of License Agreements) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Total estimated movie commitments | $ 448,718 |
Estimated movie commitments - 2016 | 381,275 |
Estimated movie commitments - 2017 | $ 67,443 |
Commitments and Contingencie111
Commitments and Contingencies (Revenue Share Commitments) (Details) - Redbox $ in Thousands | Dec. 31, 2015USD ($) |
Revenue Share Commitments [Line Items] | |
Total | $ 2,365 |
2,016 | 1,711 |
2,017 | 523 |
2,018 | $ 131 |
Guarantor Subsidiaries (Condens
Guarantor Subsidiaries (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ||||
Cash and cash equivalents | $ 222,549 | $ 242,696 | $ 371,437 | $ 282,894 |
Accounts receivable, net of allowances | 38,464 | 48,590 | ||
Content library | 188,490 | 180,121 | ||
Prepaid expenses and other current assets | 51,368 | 39,819 | ||
Intercompany receivables | 0 | 0 | ||
Total current assets | 500,871 | 511,226 | ||
Property and equipment, net | 316,013 | 428,468 | ||
Deferred income taxes | 2,606 | 11,363 | ||
Goodwill and other intangible assets, net | 540,514 | 623,998 | ||
Other long-term assets | 6,056 | 8,231 | ||
Investment in related parties | 0 | 0 | ||
Total assets | 1,366,060 | 1,583,286 | ||
Current Liabilities: | ||||
Accounts payable | 184,010 | 168,633 | ||
Accrued payable to retailers | 115,098 | 126,290 | ||
Other accrued liabilities | 141,437 | 137,126 | ||
Current portion of long-term debt and other long-term liabilities | 17,131 | 20,416 | ||
Intercompany payables | 0 | 0 | ||
Total current liabilities | 457,676 | 452,465 | ||
Long-term debt and other long-term liabilities | 897,366 | 973,669 | ||
Deferred income taxes | 33,092 | 59,774 | ||
Total liabilities | $ 1,388,134 | $ 1,485,908 | ||
Commitments and contingencies | ||||
Stockholders’ Equity (Deficit): | ||||
Preferred stock | $ 0 | $ 0 | ||
Common stock | 485,163 | 473,592 | ||
Treasury stock | (1,151,063) | (996,293) | ||
Retained earnings | 643,452 | 620,389 | ||
Accumulated other comprehensive income (loss) | 374 | (310) | ||
Total stockholders’ equity (deficit) | (22,074) | 97,378 | 518,689 | 549,088 |
Total liabilities and stockholders’ equity (deficit) | 1,366,060 | 1,583,286 | ||
Reportable Legal Entities | Outerwall Inc. | ||||
Current Assets: | ||||
Cash and cash equivalents | 160,167 | 180,889 | 315,250 | 242,489 |
Accounts receivable, net of allowances | 3,983 | 3,203 | ||
Content library | 0 | 0 | ||
Prepaid expenses and other current assets | 17,720 | 14,884 | ||
Intercompany receivables | 35,654 | 40,762 | ||
Total current assets | 217,524 | 239,738 | ||
Property and equipment, net | 97,659 | 133,923 | ||
Deferred income taxes | 0 | 0 | ||
Goodwill and other intangible assets, net | 249,703 | 249,717 | ||
Other long-term assets | 4,596 | 6,665 | ||
Investment in related parties | 921,456 | 917,234 | ||
Total assets | 1,490,938 | 1,547,277 | ||
Current Liabilities: | ||||
Accounts payable | 16,127 | 12,899 | ||
Accrued payable to retailers | 71,947 | 69,189 | ||
Other accrued liabilities | 57,025 | 59,770 | ||
Current portion of long-term debt and other long-term liabilities | 16,832 | 20,020 | ||
Intercompany payables | 459,789 | 309,932 | ||
Total current liabilities | 621,720 | 471,810 | ||
Long-term debt and other long-term liabilities | 877,325 | 949,588 | ||
Deferred income taxes | 13,965 | 28,500 | ||
Total liabilities | $ 1,513,010 | 1,449,898 | ||
Commitments and contingencies | ||||
Stockholders’ Equity (Deficit): | ||||
Preferred stock | $ 0 | |||
Common stock | 599,675 | 588,105 | ||
Treasury stock | (1,151,063) | (996,293) | ||
Retained earnings | 530,140 | 506,360 | ||
Accumulated other comprehensive income (loss) | (824) | (793) | ||
Total stockholders’ equity (deficit) | (22,072) | 97,379 | ||
Total liabilities and stockholders’ equity (deficit) | 1,490,938 | 1,547,277 | ||
Reportable Legal Entities | Combined Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and cash equivalents | 19,372 | 17,939 | 9,639 | 0 |
Accounts receivable, net of allowances | 33,269 | 43,874 | ||
Content library | 188,490 | 176,490 | ||
Prepaid expenses and other current assets | 33,049 | 23,923 | ||
Intercompany receivables | 527,996 | 467,181 | ||
Total current assets | 802,176 | 729,407 | ||
Property and equipment, net | 204,081 | 263,412 | ||
Deferred income taxes | 0 | 0 | ||
Goodwill and other intangible assets, net | 290,811 | 374,281 | ||
Other long-term assets | 1,293 | 1,231 | ||
Investment in related parties | 27,798 | (5,114) | ||
Total assets | 1,326,159 | 1,363,217 | ||
Current Liabilities: | ||||
Accounts payable | 167,694 | 153,260 | ||
Accrued payable to retailers | 30,157 | 42,977 | ||
Other accrued liabilities | 82,401 | 74,536 | ||
Current portion of long-term debt and other long-term liabilities | 0 | 0 | ||
Intercompany payables | 85,487 | 121,015 | ||
Total current liabilities | 365,739 | 391,788 | ||
Long-term debt and other long-term liabilities | 19,882 | 22,946 | ||
Deferred income taxes | 19,083 | 31,249 | ||
Total liabilities | $ 404,704 | 445,983 | ||
Commitments and contingencies | ||||
Stockholders’ Equity (Deficit): | ||||
Preferred stock | $ 0 | |||
Common stock | 252,727 | 225,729 | ||
Treasury stock | 0 | 0 | ||
Retained earnings | 668,728 | 691,505 | ||
Accumulated other comprehensive income (loss) | 0 | 0 | ||
Total stockholders’ equity (deficit) | 921,455 | 917,234 | ||
Total liabilities and stockholders’ equity (deficit) | 1,326,159 | 1,363,217 | ||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||
Current Assets: | ||||
Cash and cash equivalents | 43,010 | 43,868 | 46,548 | 40,759 |
Accounts receivable, net of allowances | 1,212 | 1,513 | ||
Content library | 0 | 3,631 | ||
Prepaid expenses and other current assets | 599 | 1,012 | ||
Intercompany receivables | 426 | 0 | ||
Total current assets | 45,247 | 50,024 | ||
Property and equipment, net | 14,273 | 31,133 | ||
Deferred income taxes | 2,606 | 11,363 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Other long-term assets | 167 | 335 | ||
Investment in related parties | 0 | 0 | ||
Total assets | 62,293 | 92,855 | ||
Current Liabilities: | ||||
Accounts payable | 189 | 2,474 | ||
Accrued payable to retailers | 12,994 | 14,124 | ||
Other accrued liabilities | 2,011 | 2,820 | ||
Current portion of long-term debt and other long-term liabilities | 299 | 396 | ||
Intercompany payables | 18,800 | 76,996 | ||
Total current liabilities | 34,293 | 96,810 | ||
Long-term debt and other long-term liabilities | 159 | 1,135 | ||
Deferred income taxes | 44 | 25 | ||
Total liabilities | $ 34,496 | 97,970 | ||
Commitments and contingencies | ||||
Stockholders’ Equity (Deficit): | ||||
Preferred stock | $ 0 | |||
Common stock | 4,636 | 12,393 | ||
Treasury stock | 3,000 | 0 | ||
Retained earnings | 18,963 | (17,991) | ||
Accumulated other comprehensive income (loss) | 1,198 | 483 | ||
Total stockholders’ equity (deficit) | 27,797 | (5,115) | ||
Total liabilities and stockholders’ equity (deficit) | 62,293 | 92,855 | ||
Eliminations and Consolidation Reclassifications | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ (354) |
Accounts receivable, net of allowances | 0 | 0 | ||
Content library | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Intercompany receivables | (564,076) | (507,943) | ||
Total current assets | (564,076) | (507,943) | ||
Property and equipment, net | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Investment in related parties | (949,254) | (912,120) | ||
Total assets | (1,513,330) | (1,420,063) | ||
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 | ||
Intercompany payables | (564,076) | (507,943) | ||
Total current liabilities | (564,076) | (507,943) | ||
Long-term debt and other long-term liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Total liabilities | $ (564,076) | (507,943) | ||
Commitments and contingencies | ||||
Stockholders’ Equity (Deficit): | ||||
Preferred stock | $ 0 | |||
Common stock | (371,875) | (352,635) | ||
Treasury stock | (3,000) | 0 | ||
Retained earnings | (574,379) | (559,485) | ||
Accumulated other comprehensive income (loss) | 0 | 0 | ||
Total stockholders’ equity (deficit) | (949,254) | (912,120) | ||
Total liabilities and stockholders’ equity (deficit) | $ (1,513,330) | $ (1,420,063) |
Guarantor Subsidiaries (Cond113
Guarantor Subsidiaries (Condensed Consolidating Statements of Comprehensive Income) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Revenue | $ 2,193,211,000 | $ 2,291,586,000 | $ 2,299,785,000 | |||||
Expenses: | ||||||||
Direct operating | [1] | 1,493,088,000 | 1,581,311,000 | 1,556,999,000 | ||||
Marketing | 35,674,000 | 35,293,000 | 30,227,000 | |||||
Research and development | 7,198,000 | 13,047,000 | 13,082,000 | |||||
General and administrative | 190,393,000 | 190,496,000 | 215,798,000 | |||||
Restructuring and lease termination costs | 27,153,000 | 557,000 | 4,495,000 | |||||
Depreciation and other | 171,390,000 | 187,824,000 | 189,401,000 | |||||
Amortization of intangible assets | 13,550,000 | 14,654,000 | 10,907,000 | |||||
Goodwill impairment | $ 85,900,000 | 85,890,000 | 0 | 0 | ||||
Total expenses | 2,024,336,000 | 2,023,182,000 | 2,020,909,000 | |||||
Operating income (loss) | 168,875,000 | 268,404,000 | 278,876,000 | |||||
Other income (expense), net: | ||||||||
Loss from equity method investments, net | (800,000) | (28,734,000) | 19,928,000 | |||||
Interest expense, net | (42,353,000) | (47,644,000) | (32,807,000) | |||||
Other, net | (2,657,000) | (1,185,000) | (3,599,000) | |||||
Total other expense, net | (45,810,000) | (77,563,000) | (16,478,000) | |||||
Income (loss) from continuing operations before income taxes | 123,065,000 | 190,841,000 | 262,398,000 | |||||
Income tax benefit (expense) | (73,619,000) | (66,164,000) | (39,710,000) | |||||
Income (loss) from continuing operations | 49,446,000 | 124,677,000 | 222,688,000 | |||||
Loss from discontinued operations, net of tax | (5,109,000) | (18,059,000) | (47,896,000) | |||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | |||||
Net income | 44,337,000 | 106,618,000 | 174,792,000 | |||||
Foreign currency translation adjustment | [2] | 684,000 | [3] | 457,000 | [4] | 856,000 | [5] | |
Comprehensive income (loss) | 45,021,000 | 107,075,000 | 175,648,000 | |||||
Foreign currency translation adjustment, tax effect | 0 | 0 | 0 | |||||
Reportable Legal Entities | Outerwall Inc. | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Revenue | 271,430,000 | 266,848,000 | 255,251,000 | |||||
Expenses: | ||||||||
Direct operating | 143,429,000 | 142,472,000 | 138,859,000 | |||||
Marketing | 6,485,000 | 7,227,000 | 6,540,000 | |||||
Research and development | (83,000) | 3,456,000 | 8,973,000 | |||||
General and administrative | 47,699,000 | 39,412,000 | 33,023,000 | |||||
Restructuring and lease termination costs | 2,926,000 | 23,000 | 724,000 | |||||
Depreciation and other | 32,643,000 | 35,155,000 | 28,101,000 | |||||
Amortization of intangible assets | 14,000 | 1,433,000 | 2,245,000 | |||||
Goodwill impairment | 0 | |||||||
Total expenses | 233,113,000 | 229,178,000 | 218,465,000 | |||||
Operating income (loss) | 38,317,000 | 37,670,000 | 36,786,000 | |||||
Other income (expense), net: | ||||||||
Loss from equity method investments, net | (800,000) | (530,000) | 65,063,000 | |||||
Interest expense, net | 30,177,000 | (48,007,000) | (32,930,000) | |||||
Other, net | 15,273,000 | 14,077,000 | (3,868,000) | |||||
Total other expense, net | 44,650,000 | (34,460,000) | 28,265,000 | |||||
Income (loss) from continuing operations before income taxes | 82,967,000 | 3,210,000 | 65,051,000 | |||||
Income tax benefit (expense) | (31,603,000) | (618,000) | 30,893,000 | |||||
Income (loss) from continuing operations | 51,364,000 | 2,592,000 | 95,944,000 | |||||
Loss from discontinued operations, net of tax | 640,000 | (803,000) | (30,834,000) | |||||
Equity in income (loss) of subsidiaries | (7,667,000) | 104,829,000 | 109,682,000 | |||||
Net income | 44,337,000 | 106,618,000 | 174,792,000 | |||||
Foreign currency translation adjustment | (31,000) | [3] | 368,000 | [4] | (105,000) | [5] | ||
Comprehensive income (loss) | 44,306,000 | 106,986,000 | 174,687,000 | |||||
Reportable Legal Entities | Combined Guarantor Subsidiaries | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Revenue | 1,874,457,000 | 1,975,905,000 | 1,999,539,000 | |||||
Expenses: | ||||||||
Direct operating | 1,328,269,000 | 1,415,132,000 | 1,394,932,000 | |||||
Marketing | 28,916,000 | 27,631,000 | 23,269,000 | |||||
Research and development | 7,281,000 | 9,591,000 | 4,111,000 | |||||
General and administrative | 142,012,000 | 150,211,000 | 169,099,000 | |||||
Restructuring and lease termination costs | 24,227,000 | 534,000 | 3,771,000 | |||||
Depreciation and other | 134,522,000 | 148,217,000 | 157,292,000 | |||||
Amortization of intangible assets | 13,536,000 | 13,221,000 | 8,662,000 | |||||
Goodwill impairment | 85,890,000 | |||||||
Total expenses | 1,764,653,000 | 1,764,537,000 | 1,761,136,000 | |||||
Operating income (loss) | 109,804,000 | 211,368,000 | 238,403,000 | |||||
Other income (expense), net: | ||||||||
Loss from equity method investments, net | 0 | (28,204,000) | (45,135,000) | |||||
Interest expense, net | (72,164,000) | 572,000 | 257,000 | |||||
Other, net | 1,354,000 | 1,334,000 | 479,000 | |||||
Total other expense, net | (70,810,000) | (26,298,000) | (44,399,000) | |||||
Income (loss) from continuing operations before income taxes | 38,994,000 | 185,070,000 | 194,004,000 | |||||
Income tax benefit (expense) | (41,785,000) | (64,989,000) | (70,577,000) | |||||
Income (loss) from continuing operations | (2,791,000) | 120,081,000 | 123,427,000 | |||||
Loss from discontinued operations, net of tax | (28,068,000) | (874,000) | (2,708,000) | |||||
Equity in income (loss) of subsidiaries | 23,192,000 | (14,378,000) | (11,037,000) | |||||
Net income | (7,667,000) | 104,829,000 | 109,682,000 | |||||
Foreign currency translation adjustment | 0 | [3] | 0 | [4] | 0 | [5] | ||
Comprehensive income (loss) | (7,667,000) | 104,829,000 | 109,682,000 | |||||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Revenue | 47,324,000 | 48,833,000 | 44,995,000 | |||||
Expenses: | ||||||||
Direct operating | 21,390,000 | 23,707,000 | 36,155,000 | |||||
Marketing | 273,000 | 435,000 | 418,000 | |||||
Research and development | 0 | 0 | (2,000) | |||||
General and administrative | 682,000 | 873,000 | 721,000 | |||||
Restructuring and lease termination costs | 0 | 0 | 0 | |||||
Depreciation and other | 4,225,000 | 4,452,000 | 4,008,000 | |||||
Amortization of intangible assets | 0 | 0 | 0 | |||||
Goodwill impairment | 0 | |||||||
Total expenses | 26,570,000 | 29,467,000 | 41,300,000 | |||||
Operating income (loss) | 20,754,000 | 19,366,000 | 3,695,000 | |||||
Other income (expense), net: | ||||||||
Loss from equity method investments, net | 0 | 0 | 0 | |||||
Interest expense, net | (366,000) | (209,000) | (134,000) | |||||
Other, net | (19,284,000) | (16,596,000) | (218,000) | |||||
Total other expense, net | (19,650,000) | (16,805,000) | (352,000) | |||||
Income (loss) from continuing operations before income taxes | 1,104,000 | 2,561,000 | 3,343,000 | |||||
Income tax benefit (expense) | (231,000) | (557,000) | (26,000) | |||||
Income (loss) from continuing operations | 873,000 | 2,004,000 | 3,317,000 | |||||
Loss from discontinued operations, net of tax | 22,319,000 | (16,382,000) | (14,354,000) | |||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | |||||
Net income | 23,192,000 | (14,378,000) | (11,037,000) | |||||
Foreign currency translation adjustment | 715,000 | [3] | 89,000 | [4] | 961,000 | [5] | ||
Comprehensive income (loss) | 23,907,000 | (14,289,000) | (10,076,000) | |||||
Eliminations and Consolidation Reclassifications | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Revenue | 0 | 0 | 0 | |||||
Expenses: | ||||||||
Direct operating | 0 | 0 | (12,947,000) | |||||
Marketing | 0 | 0 | 0 | |||||
Research and development | 0 | 0 | 0 | |||||
General and administrative | 0 | 0 | 12,955,000 | |||||
Restructuring and lease termination costs | 0 | 0 | 0 | |||||
Depreciation and other | 0 | 0 | 0 | |||||
Amortization of intangible assets | 0 | 0 | 0 | |||||
Goodwill impairment | 0 | |||||||
Total expenses | 0 | 0 | 8,000 | |||||
Operating income (loss) | 0 | 0 | (8,000) | |||||
Other income (expense), net: | ||||||||
Loss from equity method investments, net | 0 | 0 | 0 | |||||
Interest expense, net | 0 | 0 | 0 | |||||
Other, net | 0 | 0 | 8,000 | |||||
Total other expense, net | 0 | 0 | 8,000 | |||||
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 | |||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | |||||
Equity in income (loss) of subsidiaries | (15,525,000) | (90,451,000) | (98,645,000) | |||||
Net income | (15,525,000) | (90,451,000) | (98,645,000) | |||||
Foreign currency translation adjustment | 0 | [3] | 0 | [4] | 0 | [5] | ||
Comprehensive income (loss) | $ (15,525,000) | $ (90,451,000) | $ (98,645,000) | |||||
[1] | “Direct operating” excludes depreciation and other of $118.7 million, $125.7 million and $129.1 million for 2015, 2014 and 2013, respectively. | |||||||
[2] | Foreign currency translation adjustment had no tax effect in 2015, 2014 and 2013. | |||||||
[3] | Foreign currency translation adjustment had no tax effect in 2015. | |||||||
[4] | Foreign currency translation adjustment had no tax effect in 2014. | |||||||
[5] | Foreign currency translation adjustment had no tax effect in 2013. |
Guarantor Subsidiaries (Cond114
Guarantor Subsidiaries (Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Thousands | Nov. 10, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Operating Activities: | |||||||||
Net income | $ 44,337 | $ 106,618 | $ 174,792 | ||||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||
Depreciation and other | 177,247 | 195,162 | 193,700 | ||||||
Amortization of intangible assets | 13,594 | 14,692 | 10,933 | ||||||
Share-based payments expense | 17,240 | 13,384 | 16,831 | ||||||
Windfall excess tax benefits related to share-based payments | (739) | (1,964) | (3,698) | ||||||
Deferred income taxes | (19,619) | (22,611) | (10,933) | ||||||
Impairment expense, restructuring and lease termination costs | [1] | 2,054 | 0 | 32,732 | |||||
(Income) loss from equity method investments, net | 800 | 28,734 | (19,928) | ||||||
Amortization of deferred financing fees and debt discount | 2,761 | 4,116 | 6,394 | ||||||
(Gain) loss from early extinguishment of debt | (5,854) | 2,018 | 6,013 | ||||||
Gain on purchase of Gazelle (Note 3) | $ (989) | (989) | 0 | 0 | |||||
Goodwill impairment | $ 85,900 | 85,890 | 0 | 0 | |||||
Other | (972) | (1,750) | (2,039) | ||||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||
Cash flows from changes in operating assets and liabilities: | |||||||||
Accounts receivable, net | 10,011 | 8,671 | 7,978 | ||||||
Content library | (8,320) | 19,747 | (22,459) | ||||||
Prepaid expenses and other current assets | (10,065) | 44,282 | (50,542) | ||||||
Other assets | 162 | 1,702 | 230 | ||||||
Accounts payable | 17,943 | (68,912) | 1,491 | ||||||
Accrued payable to retailers | (9,968) | (6,847) | (4,088) | ||||||
Other accrued liabilities | 10,572 | 1,309 | (9,573) | ||||||
Net Cash Provided by (Used in) Operating Activities | 326,085 | [2] | 338,351 | [3] | 327,834 | [4] | |||
Investing Activities: | |||||||||
Purchases of property and equipment | (77,591) | (97,924) | (161,412) | ||||||
Proceeds from sale of property and equipment | 3,225 | 1,977 | 13,344 | ||||||
Acquisitions, net of cash acquired | (17,980) | 0 | (244,036) | ||||||
Receipt of note receivable principal | 0 | 0 | 22,913 | ||||||
Cash paid for equity investments | 0 | (24,500) | (28,000) | ||||||
Extinguishment payment received from equity investment | 0 | 5,000 | 0 | ||||||
Investments in and advances to affiliates | 0 | 0 | 0 | ||||||
Net Cash Provided by (Used in) Investing Activities | (92,346) | [2] | (115,447) | [3] | (397,191) | [4] | |||
Financing Activities: | |||||||||
Proceeds from issuance of senior unsecured notes | 0 | 295,500 | 343,769 | ||||||
Proceeds from new borrowing on Credit Facility | 310,500 | 642,000 | 400,000 | ||||||
Principal payments on Credit Facility | (339,375) | (680,125) | (215,313) | ||||||
Settlement and conversion of convertible debt | 0 | (51,149) | (172,211) | ||||||
Repurchases of common stock | [5] | (159,800) | (545,091) | (195,004) | |||||
Repurchase of Notes (Note 9) | (34,589) | 0 | 0 | ||||||
Dividends paid | (21,210) | 0 | 0 | ||||||
Principal payments on capital lease obligations and other debt | (11,510) | (13,996) | (14,834) | ||||||
Financing costs associated with Credit Facility and senior unsecured notes | [6] | (9) | (2,911) | (2,203) | |||||
Windfall excess tax benefits related to share-based payments | 739 | 1,964 | 3,698 | ||||||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | (1,461) | (520) | 8,460 | ||||||
Net cash flows from (used in) financing activities | [7] | (256,715) | [2] | (354,328) | [3] | 156,362 | [4] | ||
Effect of exchange rate changes on cash | 2,829 | 2,683 | 1,538 | ||||||
Increase (decrease) in cash and cash equivalents | (20,147) | (128,741) | 88,543 | ||||||
Cash and cash equivalents: | |||||||||
Beginning of period | 242,696 | 371,437 | 282,894 | ||||||
End of period | 222,549 | 242,696 | 371,437 | ||||||
Reportable Legal Entities | Outerwall Inc. | |||||||||
Operating Activities: | |||||||||
Net income | 44,337 | 106,618 | 174,792 | ||||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||
Depreciation and other | 32,643 | 35,139 | 29,640 | ||||||
Amortization of intangible assets | 14 | 1,433 | 2,245 | ||||||
Share-based payments expense | 10,323 | 9,693 | 9,903 | ||||||
Windfall excess tax benefits related to share-based payments | (739) | (1,964) | (3,698) | ||||||
Deferred income taxes | (14,533) | 304 | 9,228 | ||||||
Impairment expense, restructuring and lease termination costs | 509 | 32,444 | |||||||
(Income) loss from equity method investments, net | 800 | 530 | (65,063) | ||||||
Amortization of deferred financing fees and debt discount | 2,761 | 4,116 | 6,394 | ||||||
(Gain) loss from early extinguishment of debt | (5,854) | 2,018 | 6,013 | ||||||
Gain on purchase of Gazelle (Note 3) | 0 | ||||||||
Goodwill impairment | 0 | ||||||||
Other | (539) | (1,250) | 827 | ||||||
Equity in income (loss) of subsidiaries | 7,667 | (104,829) | (109,682) | ||||||
Cash flows from changes in operating assets and liabilities: | |||||||||
Accounts receivable, net | (781) | (1,130) | (1,144) | ||||||
Content library | 0 | 36 | 1,093 | ||||||
Prepaid expenses and other current assets | (2,826) | 40,826 | (43,762) | ||||||
Other assets | 66 | 75 | 201 | ||||||
Accounts payable | (1,316) | (3,017) | 1,319 | ||||||
Accrued payable to retailers | 2,758 | (1,896) | (6,181) | ||||||
Other accrued liabilities | (391) | (840) | 13,184 | ||||||
Net Cash Provided by (Used in) Operating Activities | 74,899 | [2] | 85,862 | [3] | 57,753 | [4] | |||
Investing Activities: | |||||||||
Purchases of property and equipment | (26,861) | (33,602) | (58,763) | ||||||
Proceeds from sale of property and equipment | 17 | 750 | 12,147 | ||||||
Acquisitions, net of cash acquired | 0 | (244,036) | |||||||
Receipt of note receivable principal | 22,913 | ||||||||
Cash paid for equity investments | 0 | 0 | |||||||
Extinguishment payment received from equity investment | 0 | ||||||||
Investments in and advances to affiliates | 187,538 | 166,145 | 125,856 | ||||||
Net Cash Provided by (Used in) Investing Activities | 160,694 | [2] | 133,293 | [3] | (141,883) | [4] | |||
Financing Activities: | |||||||||
Proceeds from issuance of senior unsecured notes | 295,500 | 343,769 | |||||||
Proceeds from new borrowing on Credit Facility | 310,500 | 642,000 | 400,000 | ||||||
Principal payments on Credit Facility | (339,375) | (680,125) | (215,313) | ||||||
Settlement and conversion of convertible debt | (51,149) | (172,211) | |||||||
Repurchases of common stock | (159,800) | (545,091) | (195,004) | ||||||
Repurchase of Notes (Note 9) | (34,589) | ||||||||
Dividends paid | (21,210) | ||||||||
Principal payments on capital lease obligations and other debt | (11,110) | (13,552) | (14,200) | ||||||
Financing costs associated with Credit Facility and senior unsecured notes | (9) | (2,911) | (2,203) | ||||||
Windfall excess tax benefits related to share-based payments | 739 | 1,964 | 3,698 | ||||||
Withholding tax paid on vesting of restricted stock net of proceeds from exercise of stock options | (1,461) | (520) | 8,460 | ||||||
Net cash flows from (used in) financing activities | (256,315) | [2] | (353,884) | [3] | 156,996 | [4] | |||
Effect of exchange rate changes on cash | 0 | 368 | (105) | ||||||
Increase (decrease) in cash and cash equivalents | (20,722) | (134,361) | 72,761 | ||||||
Cash and cash equivalents: | |||||||||
Beginning of period | 180,889 | 315,250 | 242,489 | ||||||
End of period | 160,167 | 180,889 | 315,250 | ||||||
Reportable Legal Entities | Combined Guarantor Subsidiaries | |||||||||
Operating Activities: | |||||||||
Net income | (7,667) | 104,829 | 109,682 | ||||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||
Depreciation and other | 136,367 | 150,904 | 158,801 | ||||||
Amortization of intangible assets | 13,536 | 13,259 | 8,688 | ||||||
Share-based payments expense | 6,917 | 3,691 | 6,928 | ||||||
Windfall excess tax benefits related to share-based payments | 0 | 0 | 0 | ||||||
Deferred income taxes | (12,730) | (17,232) | (15,727) | ||||||
Impairment expense, restructuring and lease termination costs | 1,545 | 288 | |||||||
(Income) loss from equity method investments, net | 0 | 28,204 | 45,135 | ||||||
Amortization of deferred financing fees and debt discount | 0 | 0 | 0 | ||||||
(Gain) loss from early extinguishment of debt | 0 | 0 | 0 | ||||||
Gain on purchase of Gazelle (Note 3) | (989) | ||||||||
Goodwill impairment | 85,890 | ||||||||
Other | 295 | (548) | (2,951) | ||||||
Equity in income (loss) of subsidiaries | (23,192) | 14,378 | 11,037 | ||||||
Cash flows from changes in operating assets and liabilities: | |||||||||
Accounts receivable, net | 10,673 | 8,787 | 10,639 | ||||||
Content library | (11,951) | 20,206 | (23,357) | ||||||
Prepaid expenses and other current assets | (7,599) | 3,753 | (6,280) | ||||||
Other assets | (62) | 1,558 | 400 | ||||||
Accounts payable | 21,447 | (65,737) | (408) | ||||||
Accrued payable to retailers | (12,820) | (5,149) | 1,633 | ||||||
Other accrued liabilities | 11,337 | 1,988 | (22,751) | ||||||
Net Cash Provided by (Used in) Operating Activities | 210,997 | [2] | 262,891 | [3] | 281,757 | [4] | |||
Investing Activities: | |||||||||
Purchases of property and equipment | (49,071) | (57,909) | (88,431) | ||||||
Proceeds from sale of property and equipment | 3,208 | 1,227 | 1,189 | ||||||
Acquisitions, net of cash acquired | (17,980) | 0 | |||||||
Receipt of note receivable principal | 0 | ||||||||
Cash paid for equity investments | (24,500) | (28,000) | |||||||
Extinguishment payment received from equity investment | 5,000 | ||||||||
Investments in and advances to affiliates | (145,721) | (178,406) | (156,659) | ||||||
Net Cash Provided by (Used in) Investing Activities | (209,564) | [2] | (254,588) | [3] | (271,901) | [4] | |||
Financing Activities: | |||||||||
Proceeds from issuance of senior unsecured notes | 0 | 0 | |||||||
Proceeds from new borrowing on Credit Facility | 0 | 0 | 0 | ||||||
Principal payments on Credit Facility | 0 | 0 | 0 | ||||||
Settlement and conversion of convertible debt | 0 | 0 | |||||||
Repurchases of common stock | 0 | 0 | 0 | ||||||
Repurchase of Notes (Note 9) | 0 | ||||||||
Dividends paid | 0 | ||||||||
Principal payments on capital lease obligations and other debt | 0 | (3) | (217) | ||||||
Financing costs associated with Credit Facility and senior unsecured notes | 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 flows from (used in) financing activities | 0 | [2] | (3) | [3] | (217) | [4] | |||
Effect of exchange rate changes on cash | 0 | 0 | 0 | ||||||
Increase (decrease) in cash and cash equivalents | 1,433 | 8,300 | 9,639 | ||||||
Cash and cash equivalents: | |||||||||
Beginning of period | 17,939 | 9,639 | 0 | ||||||
End of period | 19,372 | 17,939 | 9,639 | ||||||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | |||||||||
Operating Activities: | |||||||||
Net income | 23,192 | (14,378) | (11,037) | ||||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||
Depreciation and other | 8,237 | 9,119 | 5,259 | ||||||
Amortization of intangible assets | 44 | 0 | 0 | ||||||
Share-based payments expense | 0 | 0 | 0 | ||||||
Windfall excess tax benefits related to share-based payments | 0 | 0 | 0 | ||||||
Deferred income taxes | 7,644 | (5,683) | (4,434) | ||||||
Impairment expense, restructuring and lease termination costs | 0 | 0 | |||||||
(Income) loss from equity method investments, net | 0 | 0 | 0 | ||||||
Amortization of deferred financing fees and debt discount | 0 | 0 | 0 | ||||||
(Gain) loss from early extinguishment of debt | 0 | 0 | 0 | ||||||
Gain on purchase of Gazelle (Note 3) | 0 | ||||||||
Goodwill impairment | 0 | ||||||||
Other | (728) | 48 | 31 | ||||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||
Cash flows from changes in operating assets and liabilities: | |||||||||
Accounts receivable, net | 119 | 1,014 | (1,517) | ||||||
Content library | 3,631 | (495) | (195) | ||||||
Prepaid expenses and other current assets | 360 | (297) | (500) | ||||||
Other assets | 158 | 69 | (371) | ||||||
Accounts payable | (2,188) | (158) | 226 | ||||||
Accrued payable to retailers | 94 | 198 | 460 | ||||||
Other accrued liabilities | (374) | 161 | (6) | ||||||
Net Cash Provided by (Used in) Operating Activities | 40,189 | [2] | (10,402) | [3] | (12,084) | [4] | |||
Investing Activities: | |||||||||
Purchases of property and equipment | (1,659) | (6,413) | (14,218) | ||||||
Proceeds from sale of property and equipment | 0 | 0 | 8 | ||||||
Acquisitions, net of cash acquired | 0 | 0 | |||||||
Receipt of note receivable principal | 0 | ||||||||
Cash paid for equity investments | 0 | 0 | |||||||
Extinguishment payment received from equity investment | 0 | ||||||||
Investments in and advances to affiliates | (41,817) | 12,261 | 30,857 | ||||||
Net Cash Provided by (Used in) Investing Activities | (43,476) | [2] | 5,848 | [3] | 16,647 | [4] | |||
Financing Activities: | |||||||||
Proceeds from issuance of senior unsecured notes | 0 | 0 | |||||||
Proceeds from new borrowing on Credit Facility | 0 | 0 | 0 | ||||||
Principal payments on Credit Facility | 0 | 0 | 0 | ||||||
Settlement and conversion of convertible debt | 0 | 0 | |||||||
Repurchases of common stock | 0 | 0 | 0 | ||||||
Repurchase of Notes (Note 9) | 0 | ||||||||
Dividends paid | 0 | ||||||||
Principal payments on capital lease obligations and other debt | (400) | (441) | (417) | ||||||
Financing costs associated with Credit Facility and senior unsecured notes | 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 flows from (used in) financing activities | (400) | [2] | (441) | [3] | (417) | [4] | |||
Effect of exchange rate changes on cash | 2,829 | 2,315 | 1,643 | ||||||
Increase (decrease) in cash and cash equivalents | (858) | (2,680) | 5,789 | ||||||
Cash and cash equivalents: | |||||||||
Beginning of period | 43,868 | 46,548 | 40,759 | ||||||
End of period | 43,010 | 43,868 | 46,548 | ||||||
Eliminations and Consolidation Reclassifications | |||||||||
Operating Activities: | |||||||||
Net income | (15,525) | (90,451) | (98,645) | ||||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||
Depreciation and other | 0 | 0 | 0 | ||||||
Amortization of intangible assets | 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, restructuring and lease termination costs | 0 | 0 | |||||||
(Income) loss from equity method investments, net | 0 | 0 | 0 | ||||||
Amortization of deferred financing fees and debt discount | 0 | 0 | 0 | ||||||
(Gain) loss from early extinguishment of debt | 0 | 0 | 0 | ||||||
Gain on purchase of Gazelle (Note 3) | 0 | ||||||||
Goodwill impairment | 0 | ||||||||
Other | 0 | 0 | 54 | ||||||
Equity in income (loss) of subsidiaries | 15,525 | 90,451 | 98,645 | ||||||
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 | 0 | 354 | ||||||
Accrued payable to retailers | 0 | 0 | 0 | ||||||
Other accrued liabilities | 0 | 0 | 0 | ||||||
Net Cash Provided by (Used in) Operating Activities | 0 | [2] | 0 | [3] | 408 | [4] | |||
Investing Activities: | |||||||||
Purchases of property and equipment | 0 | 0 | 0 | ||||||
Proceeds from sale of property and equipment | 0 | 0 | 0 | ||||||
Acquisitions, net of cash acquired | 0 | 0 | |||||||
Receipt of note receivable principal | 0 | ||||||||
Cash paid for equity investments | 0 | 0 | |||||||
Extinguishment payment received from equity investment | 0 | ||||||||
Investments in and advances to affiliates | 0 | 0 | (54) | ||||||
Net Cash Provided by (Used in) Investing Activities | 0 | [2] | 0 | [3] | (54) | [4] | |||
Financing Activities: | |||||||||
Proceeds from issuance of senior unsecured notes | 0 | 0 | |||||||
Proceeds from new borrowing on Credit Facility | 0 | 0 | 0 | ||||||
Principal payments on Credit Facility | 0 | 0 | 0 | ||||||
Settlement and conversion of convertible debt | 0 | 0 | |||||||
Repurchases of common stock | 0 | 0 | 0 | ||||||
Repurchase of Notes (Note 9) | 0 | ||||||||
Dividends paid | 0 | ||||||||
Principal payments on capital lease obligations and other debt | 0 | 0 | 0 | ||||||
Financing costs associated with Credit Facility and senior unsecured notes | 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 flows from (used in) financing activities | 0 | [2] | 0 | [3] | 0 | [4] | |||
Effect of exchange rate changes on cash | 0 | 0 | 0 | ||||||
Increase (decrease) in cash and cash equivalents | 0 | 0 | 354 | ||||||
Cash and cash equivalents: | |||||||||
Beginning of period | 0 | 0 | (354) | ||||||
End of period | $ 0 | $ 0 | $ 0 | ||||||
[1] | The non-cash restructuring, impairment and related costs in 2015 of $2.1 million is composed of $7.4 million in impairments of lease related assets partially offset by a $5.3 million benefit resulting from the lease termination. The 2013 non-cash charge represents asset impairments of $32.7 million related to our four ventures previously included in our former New Ventures segment, Orango, Rubi, Crisp Market, and Star Studio, which were discontinued during 2013. | ||||||||
[2] | During 2015 we discontinued our Redbox operations in Canada. 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. | ||||||||
[3] | 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. | ||||||||
[4] | 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. | ||||||||
[5] | 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. | ||||||||
[6] | Total financing costs associated with the Credit Facility and senior unsecured notes issued in 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 $2.9 million. | ||||||||
[7] | During 2015 we discontinued our Redbox operations in Canada. 2014 also includes the wind-down process of certain new ventures that were discontinued during 2013. Cash flows from these discontinued operations are not segregated from cash flows from continuing operations in all periods presented. See Note 12: Discontinued Operations for cash flow disclosures related to our discontinued Redbox operations in Canada. |
Income Taxes From Continuing115
Income Taxes From Continuing Operations (Scheduling of Income from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Components of income taxes, U.S. operations | $ 121,940 | $ 188,473 | $ 259,057 |
Components of income taxes, foreign operations | 1,125 | 2,368 | 3,341 |
Income from continuing operations before income taxes | $ 123,065 | $ 190,841 | $ 262,398 |
Income Taxes From Continuing116
Income Taxes From Continuing Operations (Schedule of Components of Income Tax Expense Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current U.S. federal tax expense | $ 89,996 | $ 69,117 | $ 38,876 |
Current state and local tax expense | 10,658 | 12,294 | 10,104 |
Current foreign tax expense (benefit) | 469 | 415 | (424) |
Total current income tax expense | 101,123 | 81,826 | 48,556 |
Deferred federal income tax benefit | (27,641) | (16,232) | (3,642) |
Deferred state and local Income tax expense (benefit) | 380 | 427 | (5,653) |
Deferred foreign income tax expense (benefit) | (243) | 143 | 449 |
Total deferred income tax benefit | (27,504) | (15,662) | (8,846) |
Income Tax Expense | $ 73,619 | $ 66,164 | $ 39,710 |
Income Taxes From Continuing117
Income Taxes From Continuing Operations (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||
U.S. Federal tax expense at statutory rates, percent | 35.00% | 35.00% | 35.00% | ||||
State income taxes, net of federal benefit, percent | 5.80% | 4.10% | 3.90% | ||||
Federal and state credits, percent | (1.60%) | (1.10%) | (0.90%) | ||||
Domestic production activities deduction, percent | (4.90%) | (3.60%) | (0.60%) | ||||
Goodwill impairment, percent | 24.40% | 0.00% | 0.00% | ||||
Recognition of outside basis differences, percent | 0.00% | (1.10%) | (15.40%) | ||||
ecoATM option payments, percent | 0.20% | 1.40% | 0.70% | ||||
Valuation allowance, percent | 0.20% | 0.00% | 2.30% | ||||
Acquisition of ecoATM, percent | 0.00% | 0.00% | (9.30%) | ||||
Other, percent | 0.70% | 0.00% | (0.60%) | ||||
Effective tax rate, percent | 59.80% | 34.70% | 15.10% | ||||
Goodwill impairment (Note 6) | $ 85,900 | $ 85,890 | $ 0 | $ 0 | |||
Tax benefit from recognition of outside basis difference | $ 16,700 | ||||||
Tax benefit from non-taxable gain remeasurement on equity interest | $ 24,300 | ||||||
Discrete one-time tax benefit | $ 17,800 | ||||||
Impact of tax benefit items, percent | 22.40% | ||||||
Undistributed earnings of foreign subsidiaries | $ 18,800 |
Income Taxes From Continuing118
Income Taxes From Continuing Operations (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of the year | $ 4,639 | $ 2,781 | $ 2,383 |
Additions based on tax positions related to the current year | 1,837 | 1,836 | 824 |
Additions for tax positions related to prior years | 527 | 806 | 18 |
Reductions for tax positions related to prior years | (118) | 0 | (257) |
Reductions from lapse of applicable statute of limitations | 0 | (784) | (49) |
Settlements | 0 | 0 | (138) |
Balance, end of year | 6,885 | 4,639 | 2,781 |
Income tax penalties and interest accrued | $ 300 | $ 100 | $ 0 |
Income Taxes From Continuing119
Income Taxes From Continuing Operations (Schedule of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Income tax loss carryforwards | $ 3,015 | $ 5,690 |
Capital loss carryforwards | 4,759 | 5,930 |
Credit carryforwards | 3,482 | 2,929 |
Accrued liabilities and allowances | 27,188 | 22,652 |
Stock-based compensation | 9,065 | 11,901 |
Intangible assets | 13,109 | 17,166 |
Other | 5,720 | 3,776 |
Gross deferred tax assets | 66,338 | 70,044 |
Less: Valuation Allowance | (7,141) | (6,898) |
Total deferred tax assets | 59,197 | 63,146 |
Deferred tax liabilities: | ||
Property and equipment | (42,984) | (68,417) |
Product costs | (46,699) | (43,140) |
Total deferred tax liabilities | (89,683) | (111,557) |
Net deferred tax liabilities | $ (30,486) | $ (48,411) |
Income Taxes From Continuing120
Income Taxes From Continuing Operations (Schedule of Deferred Tax Assets Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Increase in valuation allowance | $ 243 | $ 0 | $ 6,898 |
Income Taxes From Continuing121
Income Taxes From Continuing Operations (Schedule of Operating Loss Carry Forwards) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax assets related to net operating loss carryforwards | $ 3,015 | $ 5,690 |
Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 23 | |
Deferred tax assets related to net operating loss carryforwards | 8 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 24,570 | |
Deferred tax assets related to net operating loss carryforwards | 1,118 | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 7,082 | |
Deferred tax assets related to net operating loss carryforwards | $ 1,889 | |
Minimum | Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards [Line Items] | ||
Years that net operating loss carryforwards will expire between | Dec. 31, 2029 | |
Minimum | State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Years that net operating loss carryforwards will expire between | Dec. 31, 2017 | |
Minimum | Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Years that net operating loss carryforwards will expire between | Dec. 31, 2033 | |
Maximum | Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards [Line Items] | ||
Years that net operating loss carryforwards will expire between | Dec. 31, 2034 | |
Maximum | State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Years that net operating loss carryforwards will expire between | Dec. 31, 2033 | |
Maximum | Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Years that net operating loss carryforwards will expire between | Dec. 31, 2035 |
Income Taxes From Continuing122
Income Taxes From Continuing Operations (Schedule of Tax Credit Carry Forward) (Details) - State and Local Jurisdiction $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Tax Credit Carryforward [Line Items] | |
U.S. State Tax Credits | $ 3,482 |
Illinois | |
Tax Credit Carryforward [Line Items] | |
U.S. State Tax Credits | $ 2,894 |
Illinois | Minimum | |
Tax Credit Carryforward [Line Items] | |
U.S. State tax credits, expiration periods | Dec. 31, 2017 |
Illinois | Maximum | |
Tax Credit Carryforward [Line Items] | |
U.S. State tax credits, expiration periods | Dec. 31, 2021 |
California | |
Tax Credit Carryforward [Line Items] | |
U.S. State Tax Credits | $ 588 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Contributions | $ 4.3 | $ 4.3 | $ 4.9 |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividends Payable [Line Items] | |||||||
Dividends, date declared | Feb. 3, 2015 | ||||||
Dividends, date paid | Dec. 8, 2015 | Sep. 15, 2015 | Jun. 23, 2015 | Mar. 18, 2015 | |||
Dividends paid | $ 21,347 | ||||||
Dividends, date of record | Mar. 3, 2015 | ||||||
Dividends declared per common share (in usd per share) | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 1.20 | $ 0 | $ 0 |
Paid to recipients of unvested restricted stock awards | |||||||
Dividends Payable [Line Items] | |||||||
Dividends paid | $ 600 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jan. 21, 2016 | |
Subsequent Event [Line Items] | ||||||
Estimated movie commitments | $ 448,718 | |||||
Dividends, date declared | Feb. 3, 2015 | |||||
Dividends, date paid | Dec. 8, 2015 | Sep. 15, 2015 | Jun. 23, 2015 | Mar. 18, 2015 | ||
Dividends, date of record | Mar. 3, 2015 | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Estimated movie commitments | $ 640,500 | |||||
Dividends, date declared | Feb. 3, 2016 | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.30 | |||||
Dividends, date paid | Mar. 29, 2016 | |||||
Dividends, date of record | Mar. 15, 2016 |