Basis of Presentation and Principles of Consolidation (Policies)

6 Months Ended

Jun. 30, 2015

To be consistent with our 2015 reporting, the following have been retrospectively reported in our Consolidated Statements of Comprehensive Income (Loss) 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 lease termination 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
	Three Months Ended		Six Months Ended		Three Months Ended			Six Months Ended			Three Months Ended		Six Months Ended
In thousands, except per share data	June 30, 2014				June 30, 2014						June 30, 2014
Income from continuing operations used in basic per share calculation	$	23,833	$	51,439	$	(817	)	$	(1,559	)	$	23,016	$	49,880
Income from continuing operations used in diluted per share calculation	$	23,833	$	51,439	$	(797	)	$	(1,521	)	$	23,036	$	49,918
Weighted average shares used in basic per share calculation	19,541		21,730		—			—			19,541		21,730
Weighted average shares used in diluted per share calculation	20,181		22,488		(133		)	(190		)	20,048		22,298
Basic earnings per common share from continuing operations	$	1.22	$	2.37	$	(0.04	)	$	(0.07	)	$	1.18	$	2.30
Diluted earnings per common share from continuing operations	$	1.18	$	2.29	$	(0.03	)	$	(0.05	)	$	1.15	$	2.24

See Note 13: Earnings Per Share for additional information.

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.

Accounting Pronouncements Not Yet Adopted

There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on our consolidated financial statements, from those disclosed in our 2014 Annual Report on Form 10-K, except for the following:

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 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. We are currently evaluating the impact of ASU 2015-03, which is effective for us in our fiscal year beginning January 1, 2016. Early adoption is permitted.