Redbox 2005 Annual Report Download - page 62

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COINSTAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
YEARS ENDED DECEMBER 31, 2005, 2004, AND 2003
claimed that we had breached the contract and made claims to certain of our intellectual property. On May 5,
1999, Scan Coin terminated its agreement with us and reasserted the breach of contract claim and the claim to
certain of our intellectual property. The parties have been working to settle the dispute amicably since that time.
There is no assurance, however, that the disagreement will be settled amicably, and litigation may commence.
NOTE 16: BUSINESS SEGMENT INFORMATION
SFAS No. 131, Disclosure about Segments of an Enterprise and Related Information, requires that
companies report separately in the financial statements certain financial and descriptive information about
operating segments profit or loss, certain specific revenue and expense items and segment assets. The method for
determining what information is reported is based on the way that management organizes the operating segments
for making operational decisions and assessments of financial performance. Our chief operating decision maker
is considered to be the Chief Executive Officer (“CEO”). We are organized into two reportable business
segments: the North American business (which includes the United States, Canada and Mexico), and our
International business (which includes the United Kingdom). The total revenue of the North American segment
mainly relates to operations located within the United States, and the total revenue of the International segment
mainly relates to the operations located within the United Kingdom. Goodwill arising from our acquisitions has
been allocated to the North American segment.
Year ended December 31,
2005 2004 2003
(in thousands)
Revenue:
North American ............................................. $438,482 $289,485 $165,274
International ................................................ 21,257 17,615 10,862
Total revenue ........................................... $459,739 $307,100 $176,136
Net income:
North American business ...................................... $ 22,402 $ 17,311 $ 16,513
International business ......................................... (130) 3,057 3,042
Total net income ......................................... $ 22,272 $ 20,368 $ 19,555
December 31,
2005 2004
(in thousands)
Total assets:
North American business ............................................... $632,949 $535,864
International business .................................................. 26,835 25,886
Intercompany eliminations .............................................. (16,383) (14,616)
Total assets ...................................................... $643,401 $547,134
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