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COINSTAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
YEARS ENDED DECEMBER 31, 2005, 2004, AND 2003
During 2005, there have been no significant changes in our business, nor any changes in events or
circumstances that would suggest the carrying value of fixed assets have changed, or warrant testing for
recoverability or impairment. 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:
2005 2004
(in thousands)
Payroll related expenses .................................... $ 7,430 $ 6,716
Interest payable ........................................... 2,998 2,129
Income taxes payable ...................................... 42 1,020
Business taxes ............................................ 2,227 1,699
Service contract providers ................................... 2,964 2,445
Marketing ............................................... 2,177 689
Accrued medical insurance .................................. 1,742 1,515
Other ................................................... 7,361 6,200
$26,941 $22,413
NOTE 6: LONG-TERM DEBT
Long-term debt consisted of the following at December 31:
2005 2004
(in thousands)
Term loan ............................................. $205,764 $207,853
Long-term note payable .................................. — 55
205,764 207,908
Less current portion ...................................... (2,089) (2,089)
Long-term debt ......................................... $203,675 $205,819
Credit facility: On July 7, 2004, we entered into a senior secured credit facility to provide for the
financing of our acquisition of ACMI. The credit agreement provided 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. Fees for this facility
of approximately $5.7 million are being amortized over the life of the revolving line of credit and the term loan
which are 5 years and 7 years, respectively. Loans made pursuant to the credit agreement are secured by a first
security interest in substantially all of our assets and the assets of our subsidiaries, as well as a pledge of our
subsidiaries’ capital stock. The credit facility matures on July 7, 2011. As of December 31, 2005, no amounts
were outstanding under the revolving credit facility and our original term loan balance of $250.0 million had
been reduced to $205.8 million.
Advances under this credit facility may be made as either base rate loans (the higher of the Prime Rate or
Federal Funds Effective Rate) or LIBOR rate loans at our election. Applicable interest rates are based upon either
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