Redbox 2010 Annual Report Download - page 51

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Fair Value of Callable Convertible Debt
The fair market value of our fixed rate convertible debt is subject to interest rate risk. Generally, the fair market
value of fixed interest rate debt will increase as interest rates fall and decrease as interest rates rise. The interest
rate changes affect the fair market value of our long-term debt, but do not impact our earnings or cash flows. At
December 31, 2010, we had $200.0 million of fixed rate convertible debt outstanding. Based on the borrowing
rate of similar types of borrowing arrangements, we have determined that the fair market value of our fixed
interest rate debt was approximately $180.9 million as of December 31, 2010.
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