Redbox 2012 Annual Report Download - page 92

Other Contingencies
During the first quarter of 2012, we recorded a loss contingency in the amount of $8.4 million in our
Consolidated Statements of Comprehensive Income related to a supply agreement. Based on subsequent periods’
activity, we recorded an additional $3.0 million. As of December 31, 2012, the amount accrued within other
accrued liabilities in our Consolidated Balance Sheets was $11.4 million, representing our best estimate of loss.
We believe the likelihood of additional losses material to our accrual as of December 31, 2012 is remote.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We maintain a set of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Management, with the participation of our
Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of
our disclosure controls and procedures as of the end of the period covered by this report and has determined that
such disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting
We also maintain a system of internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-
15(f) of the Exchange Act). No changes in our internal control over financial reporting occurred during the
quarter ended December 31, 2012 that have materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting, as such term is defined in the Exchange Act Rule 13a-15(f). Under the supervision and with the
participation of our management, including our Chief Executive Officer and Chief Financial Officer, we
conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31,
2012 as required by the Exchange Act Rule 13a-15(c). In making this assessment, we used the criteria set forth in
the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission. Based on our evaluation under the framework in Internal Control-Integrated
Framework, our management concluded that our internal control over financial reporting was effective as of
December 31, 2012.
Attestation Report of the Independent Registered Public Accounting Firm
The attestation report of KPMG LLP, our independent registered public accounting firm, on the effectiveness of
our internal control over financial reporting is set forth on page 42.
ITEM 9B. OTHER INFORMATION
None.
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information required by this item is incorporated herein by reference to the Proxy Statement relating to our
2013 Annual Meeting of Stockholders.
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