Redbox 2011 Annual Report Download - page 71

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NOTE 5: PROPERTY AND EQUIPMENT
Dollars in thousands December 31,
2011 2010
Kiosks and components ................................ $ 887,237 $ 791,014
Computers, servers, and software ......................... 123,766 49,603
Office furniture and equipment ........................... 4,791 3,845
Vehicles ............................................. 9,077 10,661
Leasehold improvements ............................... 14,673 11,047
Property and equipment, at cost .......................... 1,039,544 866,170
Accumulated depreciation and amortization ................ (540,366) (421,483)
Property and equipment, net ............................. $ 499,178 $ 444,687
NOTE 6: GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
The carrying amount of goodwill was as follows:
Dollars in thousands December 31,
2011 2010
Goodwill .............................................. $267,750 $267,750
Accumulated impairment losses ............................ — —
Total goodwill, net .................................. $267,750 $267,750
Goodwill by Segment
The carrying amount of goodwill by segment was as follows:
Dollars in thousands December 31,
2011 2010
Redbox ............................................... $111,399 $111,399
Coin .................................................. 156,351 156,351
New Ventures .......................................... — —
Total goodwill, net .................................. $267,750 $267,750
There were no changes to our goodwill balance during 2011 or 2010.
We qualitatively assessed goodwill for impairment on November 30, 2011, and determined that it was not more
likely than not that the fair value of each of our reporting units was less than its applicable carrying value.
Accordingly, it was not necessary to perform the two-step impairment test and no goodwill impairment was
recognized in 2011.
During 2010, after performing step one of our goodwill impairment test using the income and market approach to
determine the estimated fair value of our Redbox and Coin reporting units, we determined that there was no
goodwill impairment. Additionally, during 2010, the goodwill of $7.7 million related to our Money Transfer
business was reclassified to assets of businesses held for sale on our Consolidated Balance Sheets, and was
subsequently disposed of upon the close of the sale transaction in 2011.
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