Redbox 2012 Annual Report Download - page 64

Reclassifications
We have reclassified certain results from the prior year to be consistent with our current year presentation. The
reclassifications included in our Consolidated Statements of Comprehensive Income were as follows:
• Presentation of the components of other comprehensive income before related tax effects with one
amount shown for the aggregate income tax effect; and
• Separate presentation of income or loss from equity method investments.
These reclassifications had no effect on our consolidated financial position, results of operations, or cash flows.
Revision of Previously Issued Financial Statements
During the second quarter of 2012, we identified a $17.1 million adjustment related to the 2009 disposition of our
entertainment services business. The adjustment was determined to be an immaterial error in the calculation of a
worthless stock deduction which resulted in an overstatement of our noncurrent deferred income tax asset and
income from discontinued operations, net of tax, in our 2009 year-end financial statements. We concluded that
the error was not material to any of our prior period financial statements under the guidance of SEC Staff
Accounting Bulletin (“SAB”) No. 99, Materiality primarily because it does not impact any known trends we
consider meaningful. Although the error was and continues to be immaterial to prior periods, because of the
significance of the out-of-period correction in the second quarter of 2012, we applied the guidance of SAB
No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current
Year Financial Statements, and revised our prior period financial statements.
In addition to a decrease of $17.1 million in our retained earnings on March 31, 2012, and December 31, 2011,
we have revised our 2009 year-end financial statements in the following tables:
Dollars in thousands December 31, 2009
As Reported Adjustment As Revised
Noncurrent deferred income tax assets ......... $ 99,195 $(17,113) $ 82,082
Total assets .............................. $1,222,799 $(17,113) $1,205,686
Retained earnings ......................... $ 50,971 $(17,113) $ 33,858
Total equity .............................. $ 412,391 $(17,113) $ 395,278
Total liabilities and stockholder’s equity ....... $1,222,799 $(17,113) $1,205,686
Dollars in thousands, except per share data Year Ended December 31, 2009
As Reported Adjustment As Revised
Income (loss) from discontinued operation, net of
tax ................................... $13,577 $(17,113) $(3,536)
Basic earnings (loss) per share:
Continuing operations .................. $ 1.33 $ — $ 1.33
Discontinued operations ................ 0.45 (0.56) (0.11)
Basic earnings (loss) per share ............... $ 1.78 $ (0.56) $ 1.22
Diluted earnings (loss) per share:
Continuing operations .................. $ 1.31 $ — $ 1.31
Discontinued operations ................ 0.45 (0.56) (0.11)
Diluted earnings (loss) per share .............. $ 1.76 $ (0.56) $ 1.20
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