Redbox 2011 Annual Report Download - page 61

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COINSTAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009
NOTE 1: ORGANIZATION AND BUSINESS
Description of Business
We are a leading provider of automated retail solutions offering convenient products and services that benefit
consumers and drive incremental retail traffic and revenue for retailers. Our core offerings in automated retail
include our Redbox and Coin segments. Our Redbox segment consists of self-service kiosks where consumers
can rent or purchase movies and video games. Our Coin segment consists of self-service coin-counting kiosks
where consumers can convert their coin to cash, a gift card or an e-certificate, among other options. Our New
Ventures segment is focused on identifying, evaluating, building, and developing innovative self-service
concepts in the marketplace. Our kiosks are located primarily in supermarkets, drug stores, mass merchants,
financial institutions, convenience stores, and restaurants. Our kiosk and location counts as of December 31,
2011, are as follows:
Kiosks Locations
Redbox .................................................. 35,400 29,300
Coin .................................................... 20,200 19,900
Total ................................................ 55,600 49,200
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Coinstar, Inc., our wholly-owned
subsidiaries, and companies in which we have a controlling interest. Investments in companies of which we may
have significant influence, but not a controlling interest, are accounted for using the equity method of accounting.
All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates in Financial Reporting
We prepare our financial statements in conformity with accounting principles generally accepted in the U.S.
which requires management to make estimates and assumptions that affect the reported amounts in our
consolidated financial statements and our notes thereto. The most significant estimates and assumptions include
the:
• useful lives and salvage values of our content library;
• determination of goodwill impairment;
• lives and recoverability of equipment and other long-lived assets;
• recognition and measurement of current and long-term deferred income taxes (including the
measurement of uncertain tax positions); and
• loss contingencies.
It is reasonably possible that the estimates we make may change in the future and could have a material affect on
our financial statements.
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