Redbox 2011 Annual Report Download - page 75

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The payments made to McDonald’s USA over the contractual term of the Rollout Agreement will reduce the
accrued interest liability and principal. The future payments made under this Rollout Agreement contain a
minimum annual payment as well as the variable payouts based on the license fee earned by McDonald’s USA
and its franchisees through the term of the agreement. The following is the summary in relation to the rollout
agreement.
Contractual term for the payments made to McDonald’s USA under the Rollout
Agreement ....................................................... 5years
Minimum annual payment amount under the Rollout Agreement in 2011 (in
thousands) ....................................................... $2,300
Dollars in thousands December 31,
2011 2010
Current portion of debt—Rollout Agreement ..................... $3,048 $ 7,523
Long term portion of debt—Rollout agreement ................... 220 3,268
Total debt in relation to Rollout Agreement ...................... $3,268 $10,791
Expiration dates within the Rollout Agreement will begin in December 2011 and continue through November
2013. Any unpaid debt balance under the Rollout Agreement as well as related accrued interest will be released
upon expiration and recognized in foreign currency and other, net in our Consolidated Statement of Net Income.
Asset Retirement Obligation
We have entered into agreements with our partners to place kiosks in their stores. Upon contract terminations, we
are obligated to remove the kiosks from the store locations and, accordingly, we recognize the estimated fair
value of the liability under the long-term section of our liabilities in our Consolidated Balance Sheets.
Other Long-Term Liabilities
Included in other long-term liabilities were primarily tenant improvements related to our office building
renovation in Oakbrook Terrace, Illinois and Bellevue, Washington as well as the related unrecognized tax
benefits as follows:
Dollars in thousands December 31,
2011 2010
Tenant improvement and deferred rent .......................... $ 9,269 $5,433
Unrecognized tax benefit .................................... 1,574 1,255
Total other long-term liabilities ............................... $10,843 $6,688
NOTE 9: REPURCHASES OF COMMON STOCK
Board Authorization
The following table presents a summary of our authorized stock repurchase balance:
Dollars in thousands
Board
Authorization
Authorized repurchase—January 1, 2011 ............. $ 74,486
Repurchase from Accelerated Stock Repurchase
Agreement (“ASR Agreement”) .............. (50,000)
Repurchase from open market .................. (13,349)
Board Authorization on July 19, 2011 ............ 250,000
Proceeds from the exercise of stock options ....... 3,261
Authorized repurchase—December 31, 2011 .......... $264,398
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