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Discontinued Operations
 12 Months Ended
Dec. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
Note 12: Discontinued Operations
Summary Financial Information
On January 23, 2015, we made the decision to shut down our Redbox Canada operations as the business was not meeting the Company's performance expectations. On March 31, 2015, we completed the disposal of the Redbox Canada operations. We have reclassified the results of Redbox Canada to discontinued operations for all periods presented in our Consolidated Statements of Comprehensive Income.
In addition to Redbox Canada, during 2013, we discontinued certain new ventures. See below for additional information.
The following table sets forth the components of discontinued operations included in our Consolidated Statements of Comprehensive Income:
 
Year Ended December 31,
Dollars in thousands
2014
 
2013
 
2012
Redbox Canada revenue
$
11,417

 
$
6,816

 
$
1,733

Certain new ventures revenue
100

 
4,399

 
2,159

Total revenue
$
11,517

 
$
11,215

 
$
3,892

 
 
 
 
 
 
Redbox Canada loss before income tax
$
(23,707
)
 
$
(19,830
)
 
$
(8,121
)
Certain new ventures loss before income tax
(1,259
)
 
(54,395
)
 
(16,647
)
Total loss before income tax:
(24,966
)
 
(74,225
)
 
(24,768
)
 
 
 
 
 
 
Redbox Canada income tax benefit
6,416

 
5,233

 
2,270

Certain new ventures income tax benefit
491

 
21,096

 
6,425

Total income tax benefit
6,907

 
26,329

 
8,695

 
 
 
 
 
 
Redbox Canada loss, net of tax
(17,291
)
 
(14,597
)
 
(5,851
)
Certain new ventures loss, net of tax
(768
)
 
(33,299
)
 
(10,222
)
Total loss from discontinued operations, net of tax
$
(18,059
)
 
$
(47,896
)
 
$
(16,073
)

Redbox Canada
The disposition and operating results of Redbox Canada are presented in discontinued operations in our Consolidated Statements of Comprehensive Income for all periods presented. The following table sets forth the components of discontinued operations included in our Consolidated Statements of Comprehensive Income:
 
Year Ended December 31,
Dollars in thousands
2014
 
2013
 
2012
Major classes of line items constituting pretax loss of discontinued operations:
 
 
 
 
 
Revenue
$
11,417

 
$
6,816

 
$
1,733

Direct operating
20,027

 
18,278

 
6,297

Marketing
2,947

 
2,175

 
1,822

Research and development
—

 
2

 
—

General and administrative
1,078

 
3,088

 
987

Depreciation and other
7,354

 
2,760

 
694

Amortization of intangible assets
38

 
26

 
21

Other expense, net
(3,680
)
 
(317
)
 
(33
)
Pretax loss of discontinued operations related to major classes of pretax loss
(23,707
)
 
(19,830
)
 
(8,121
)
Income tax benefit
6,416

 
5,233

 
2,270

Total loss on discontinued operations
$
(17,291
)
 
$
(14,597
)
 
$
(5,851
)


We estimate the cash expenditures after March 31, 2015 related to the disposition of Redbox Canada to be approximately $1.0 million. Significant operating and investing cash flows of Redbox Canada were as follows:
 
Year Ended December 31,
Dollars in thousands
2014
 
2013
 
2012
Net loss on discontinued operations
$
(17,291
)
 
$
(14,597
)
 
$
(5,851
)
Adjustments to reconcile net loss to net cash flows from operating activities:
 
 
 
 
 
Depreciation and amortization
7,392

 
2,786

 
715

Content library
(787
)
 
(410
)
 
(659
)
Prepaid and other current assets
(293
)
 
(516
)
 
(3,092
)
Accounts payable
627

 
644

 
(14
)
Accrued payables to retailers
(175
)
 
247

 
2,023

Other accrued liabilities
(122
)
 
506

 
807

Net cash flows from operating activities
$
(10,649
)
 
$
(11,340
)
 
$
(6,071
)
Investing activities:
 
 
 
 
 
Purchase of property, plant and equipment
(5,494
)
 
(9,330
)
 
(12,098
)
Total cash flows used in investing activities
$
(5,494
)
 
$
(9,330
)
 
$
(12,098
)

Discontinuation of Certain New Ventures
During 2013, we discontinued four new venture concepts; Rubi, Crisp Market, Orango, and Star Studio. As a result, for each concept we estimated the fair value of assets held utilizing a cash flow approach. For each of the concepts and for certain shared service assets used for the new ventures, we estimated the fair value of the assets was zero and recorded impairment charges for each concept. Total asset impairment charges related to the concepts and relevant shared service assets were recorded in 2013 as follows:
Dollars in thousands
Impairment Expense
Rubi
$
21,317

Orango
5,551

Crisp Market
289

Star Studio
2,786

Corporate assets utilized for discontinued concepts
2,789

Total impairment expense
$
32,732


We completed the wind-down process of all discontinued ventures in 2014. The results of the discontinued ventures and associated impairment and restructuring charges, net of tax, are recorded within loss from discontinued operations, net of tax in our Consolidated Statements of Comprehensive Income (see Note 10: Restructuring). The discontinued concepts did not meet the criteria to be classified as held for sale and accordingly the assets and liabilities are not separately presented in our Consolidated Balance Sheets. The continuing cash flows from these operations after discontinuation are insignificant and are not segregated from cash flows from continuing operations in all periods presented in our Consolidated Statements of Cash Flows.