Redbox 2010 Annual Report Download - page 40

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General and Administrative
Our general and administrative expenses consist primarily of executive management, business development,
supply chain management, finance, management information system, human resources, legal, facilities, risk
management, and administrative support for field operations.
Dollars in thousands Year Ended December 31, Change
2010 2009 $ %
DVD Services .............................................. $ 97,179 $ 79,465 $17,714 22.3%
Coin Services ............................................... 23,653 14,953 8,700 58.2%
Share-based payment expense .................................. 7,797 6,680 1,117 16.7%
Total ................................................. $128,629 $101,098 $27,531 27.2%
Year Ended December 31, Change
2009 2008 $ %
DVD Services .............................................. $ 79,465 $ 55,004 $24,461 44.5%
Coin Services ............................................... 14,953 14,698 255 1.7%
Share-based payment expense .................................. 6,680 6,521 159 2.4%
Total ................................................. $101,098 $ 76,223 $24,875 32.6%
Year Ended December 31,
2010 2009 2008
General and administrative expenses as a percentage of revenue:
DVD Services ........................................................ 8.4% 10.3% 14.2%
Coin Services ........................................................ 8.6% 5.8% 5.6%
Total ........................................................... 9.0% 9.8% 11.7%
The increase in general and administrative expenses in 2010 compared to 2009 was primarily due to the
increased payroll and benefit related costs resulting from new hires, primarily in the information technology,
software development, customer experience and marketing areas, as well as professional consulting service
expense to support the growth of our DVD Services business. In addition, we increased our spending in shared
service support functions to strengthen the company infrastructure. Such shared service costs were allocated to
both our DVD Services and Coin Services segments.
The increase in general and administrative expenses as a percentage of revenue for our Coin Services segment in
2010 compared to 2009 was primarily due to the increase in allocated costs from our shared service support
functions, primarily as a result of increased headcount and related costs, as well as the investment in
infrastructure to support the growth of the overall business which grew faster than the related revenues.
The increase in general and administrative expenses in 2009 compared to 2008 was primarily due to increased
administrative costs to sustain the growth of our DVD Services segment, including increased personnel, as well
as other corporate management transition costs. These increases were partially offset by a $4.1 million charge
related to a proxy contest in 2008. General and administrative costs decreased as a percentage of revenue in 2009
compared to 2008 as the growth in revenue created a larger base over which to spread such costs.
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