Redbox 2010 Annual Report Download - page 70

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Electronic Payment Business
On May 25, 2010, we sold our subsidiaries comprising our E-Pay Business to InComm Holdings, Inc. and
InComm Europe Limited (collectively “InComm”) for an aggregate purchase price of $40.0 million. The
purchase price was subject to a post-closing net working capital adjustment in the amount of $0.5 million, which
was finalized in October 2010. The disposed assets and liabilities primarily consisted of the following (in
thousands):
May 25,
2010
December 31,
2009
Current assets .......................................... $24,862 $31,236
Property, plant and equipment, net ......................... 2,574 3,343
Goodwill ............................................. 9,039 9,039
Intangible assets ........................................ 61 154
Other assets ........................................... 2,538 2,435
39,074 46,207
Current liabilities ....................................... 27,717 40,416
Net assets sold ......................................... $11,357 $ 5,791
Entertainment Business
On September 8, 2009, we sold our subsidiaries comprising our Entertainment Business to National
Entertainment Network, Inc. (“National”) for nominal consideration. With the transaction, National assumed the
operations of the Entertainment Business, including substantially all of the Entertainment Business’s related
assets and liabilities. The disposed assets and liabilities primarily consisted of the following (in thousands):
September 8,
2009
Current assets ................................................... $29,378
Property, plant and equipment, net ................................... 35,233
Intangible assets ................................................. 4,410
Other assets ..................................................... 3,062
72,083
Total liabilities ................................................... 25,596
Net assets sold ................................................... $46,487
As a result of the sale, we recorded a pre-tax loss on disposal of $49.8 million and a one-time tax benefit of $82.2
million during the third quarter of 2009.
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