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Discontinued Operations
 12 Months Ended
Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Note 12: Discontinued Operations
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 our 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.
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
2015
 
2014
 
2013
Redbox Canada revenue
$
1,972

 
$
11,417

 
$
6,816

Certain new ventures revenue
—

 
100

 
4,399

Total revenue
$
1,972

 
$
11,517

 
$
11,215

 
 
 
 
 
 
Redbox Canada loss before income tax
$
(13,605
)
 
$
(23,707
)
 
$
(19,830
)
Certain new ventures loss before income tax
—

 
(1,259
)
 
(54,395
)
Total loss before income tax:
(13,605
)
 
(24,966
)
 
(74,225
)
 
 
 
 
 
 
Redbox Canada income tax benefit
8,496

 
6,416

 
5,233

Certain new ventures income tax benefit
—

 
491

 
21,096

Total income tax benefit
8,496

 
6,907

 
26,329

 
 
 
 
 
 
Redbox Canada loss, net of tax
(5,109
)
 
(17,291
)
 
(14,597
)
Certain new ventures loss, net of tax
—

 
(768
)
 
(33,299
)
Total loss from discontinued operations, net of tax
$
(5,109
)

$
(18,059
)

$
(47,896
)

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
2015
 
2014
 
2013
Major classes of line items constituting pretax loss of discontinued operations:
 
 
 
 
 
Revenue
$
1,972

 
$
11,417

 
$
6,816

Direct operating
4,533

 
20,027

 
18,278

Marketing
112

 
2,947

 
2,175

Research and development
—

 
—

 
2

General and administrative
117

 
1,078

 
3,088

Restructuring and related costs
522

 
—

 
—

Depreciation and other
5,857

 
7,354

 
2,760

Amortization of intangible assets
44

 
38

 
26

Other expense, net
(4,392
)
 
(3,680
)
 
(317
)
Pretax loss of discontinued operations related to major classes of pretax loss
(13,605
)
 
(23,707
)
 
(19,830
)
Income tax benefit(1)
8,496

 
6,416

 
5,233

Net loss on discontinued operations
$
(5,109
)
 
$
(17,291
)
 
$
(14,597
)

(1)
The income tax benefit for 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:
 
Year Ended December 31,
Dollars in thousands
2015
 
2014
 
2013
Net loss on discontinued operations
$
(5,109
)
 
$
(17,291
)
 
$
(14,597
)
Adjustments to reconcile net loss to net cash flows from operating activities:
 
 
 
 
 
Depreciation and amortization
5,901

 
7,392

 
2,786

Content library
3,328

 
(787
)
 
(410
)
Prepaid and other current assets
1,329

 
(293
)
 
(516
)
Accounts payable
(2,663
)
 
627

 
644

Accrued payables to retailers
(155
)
 
(175
)
 
247

Other accrued liabilities
(806
)
 
(122
)
 
506

Net cash flows from operating activities
$
1,825

 
$
(10,649
)
 
$
(11,340
)
Investing activities:
 
 
 
 
 
Purchase of property, plant and equipment
(292
)
 
(5,494
)
 
(9,330
)
Total cash flows used in investing activities
$
(292
)
 
$
(5,494
)
 
$
(9,330
)

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 11: Restructuring). 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.