Discontinued Operations

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 10: Discontinued Operations

Summary Financial Information

On January 23, 2015, we made the decision to shut down our Redbox Canada operations as the business was not meeting the company's performance expectations. 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 the 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.

The following table sets forth the components of discontinued operations included in our Consolidated Statements of Comprehensive Income:

	Three Months Ended			Six Months Ended
Dollars in thousands	June 30, 2015			June 30, 2015
Major classes of line items constituting pretax loss of discontinued operations:
Revenue	$	—		$	1,557
Direct operating	35			4,304
Marketing	(17		)	112
General and administrative	35			154
Restructuring and related costs	—			522
Depreciation and other	—			5,858
Amortization of intangible assets	—			44
Other expense, net	166			(4,329		)
Pretax gain (loss) of discontinued operations related to major classes of pretax loss	113			(13,766		)
Income tax benefit(1)	1,622			8,945
Net income (loss) on discontinued operations	$	1,735		$	(4,821	)

(1) The income tax benefit for the three months and six months ended June 30, 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:

	Three Months Ended			Six Months Ended
Dollars in thousands	June 30, 2015			June 30, 2015
Net income (loss) on discontinued operations	$	1,735		$	(4,821	)
Adjustments to reconcile net gain (loss) to net cash flows from operating activities:
Depreciation and amortization	—			5,902
Content library	148			3,212
Prepaid and other current assets	690			1,234
Accounts payable	(1,095		)	(2,716		)
Accrued payables to retailers	—			(155		)
Other accrued liabilities	(585		)	(617		)
Net cash flows from operating activities	$	893		$	2,039
Investing activities:
Purchase of property, plant and equipment	—			(278		)
Total cash flows used in investing activities	$	—		$	(278	)