Income Taxes (Notes)

6 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 19: Income Taxes

During the second quarter of 2014 we reported a $2.3 million discrete tax benefit related to the recognition of a worthless stock deduction from an outside basis difference in a corporate subsidiary. Our effective tax rate was 20.3% and 30.0% for the three and six months ended June 30, 2014, respectively. Our effective tax rate in 2014 was lower than the U.S. Federal statutory rate of 35.0% due primarily to the worthless stock deduction and the Domestic Production Activities Deduction, which we are entitled to based on our domestic manufacturing activities, which were recorded net of a contingency reserve, offset partially by state income taxes.

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. Total proceeds from the sale of the subsidiary were $11.8 million. 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 various capital and ordinary gains and losses. Our effective tax was 5.8% and 19.7% for the three and six months ended June 30, 2013, respectively. Our effective tax rate in 2013 was lower than the U.S. Federal statutory rate of 35.0% due primarily to the discrete one-time tax benefit of $17.8 million, offset partially by state income taxes.