Redbox 2004 Annual Report Download - page 49

COINSTAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS –(Continued)
YEARS ENDED DECEMBER 31, 2004, 2003, AND 2002
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NOTE 4: PROPERTY AND EQUIPMENT
December 31,
2004 2003
(in thousands)
Coin, entertainment and e-payment machines ........................... $ 261,908 $ 176,329
Computers.................................................................................. 9,931 9,197
Office furniture and equipment.................................................. 4,415 1,382
Leased vehicles.......................................................................... 5,569 3,957
Leasehold improvements ........................................................... 737 705
282,560 191,570
Accumulated depreciation and amortization.............................. (151,293
)
(130,800)
$ 131,267 $ 60,770
During 2004, we evaluated our long-lived assets in accordance with SFAS No. 144, Accounting for Impairment or
Disposal of Long-Lived Assets. In the first and second quarter of 2004, as a result of our evaluation, we recorded a charge of
approximately $1.9 million for the write down of the first generation hardware of our prepaid services. This charge, which
related primarily to our North American operating segment, is reported in the line item titled, Depreciation and other, of our
Consolidated Statements of Operations.
NOTE 5: ACCRUED LIABILITIES
Accrued liabilities consisted of the following at December 31:
2004 2003
(in thousands)
Payroll related expenses........................................................................ $ 6,716 $ 3,769
Interest payable..................................................................................... 2,129 163
Income taxes payable............................................................................ 1,020 —
Business taxes....................................................................................... 1,699 1,002
Service contract providers .................................................................... 2,445 2,137
Accrued medical insurance................................................................... 1,515 602
Other..................................................................................................... 7,380 1,840
$ 22,904 $ 9,513
NOTE 6: LONG-TERM DEBT
Long-term debt consisted of the following at December 31:
2004 2003
(in thousands)
JPMorgan Chase Bank term loan................................
......................
$ 207,853 $ —
Bank of America term loan................................
...............................
— 13,250
Bank of America revolving line of credit ................................
.........
— 2,500
Long-term note payable................................................................
....
55 —
207,908 15,750
Less current portion................................................................
..........
(2,089
)
(13,250)
Long-term debt ................................................................
.................
$ 205,819 $ 2,500
JPMorgan Chase Bank Credit Facility: On July 7, 2004, we entered into a senior secured credit facility funded by a
syndicate of lenders led by JPMorgan Chase Bank and Lehman Brothers Inc. to provide for the financing of our acquisition
of ACMI. The credit agreement provides for advances totaling up to $310.0 million, consisting of a $60.0 million revolving
credit facility and a $250.0 million term loan facility. As of December 31, 2004, our original term loan balance of $250.0