Property And Equipment (Notes)

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT



	September 30,			December 31,
Dollars in thousands	2013			2012
Kiosks and components	$	1,107,205		$	1,041,755
Computers, servers, and software	226,166			195,756
Office furniture and equipment	7,270			6,538
Vehicles	6,782			7,278
Leasehold improvements	22,636			19,743
Property and equipment, at cost	1,370,059			1,271,070
Accumulated depreciation and amortization	(809,984		)	(684,946		)
Property and equipment, net	$	560,075		$	586,124

During the first quarter of 2013, we began exploring strategic alternatives for our New Ventures self-service concept for refurbished electronics called Orango™. We determined that certain assets related to this concept would be sold or otherwise disposed of before the end of their previously established useful lives and estimated that their fair value less costs to sell utilizing a cash flow approach exceeded their carrying value. As a result, during the first quarter of 2013, we recognized charges of $2.7 million in depreciation and other expense and $0.5 million in direct operating expense in our Consolidated Statements of Comprehensive Income. We ceased Orango™ operations during the second quarter of 2013 and during the third quarter of 2013 based on current information, we estimated the fair value less costs to sell utilizing a cash flow approach was zero and accelerated depreciation on the remaining carrying value of the assets of $2.6 million in order to fully depreciate the assets during the third quarter of 2013. Consequently, we recorded total charges of $2.6 million and $5.3 million for the three and nine months ended September 30, 2013, respectively to depreciation and other expense and $0.5 million to direct operating expense for the nine months ended September 30, 2013 in our Consolidated Statements of Comprehensive Income.

During the second quarter of 2013, we entered into an arrangement to sell certain kiosks previously acquired from NCR (the “NCR Kiosks”) through the sale of a previously consolidated entity which held certain of the NCR kiosks with a net book value of $12.4 million. Total proceeds from the sale of the entity were $11.8 million and are recorded within proceeds from sale of property and equipment within our Consolidated Statements of Cash Flows. As a result of this sale and certain reorganizations we recorded a one-time tax benefit as described in Note 16: Income Taxes.

During the third quarter of 2013, we acquired ecoATM, which included $23.2 million in property and equipment measured at fair value as of the acquisition date and is included in the table above. See Note 4: Business Combinations for more information.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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