Redbox 2013 Annual Report Download - page 30

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21
• During the year ended December 31, 2013, we repurchased 3,306,433 shares of our common stock for $195.0 million.
See Note 9: Repurchases of Common Stock in our Notes to Consolidated Financial Statements.
Q3 2013 Events
• On July 23, 2013, we completed the acquisition of ecoATM for total consideration transferred of $264.3 million and
revalued our previously held 23.0% equity interest at $76.4 million resulting in a gain of $68.4 million which is
included in Other income in our Consolidated Statements of Comprehensive Income. See Note 3: Business
Combinations in our Notes to Consolidated Financial Statements.
Q2 2013 Events
• During the second quarter of 2013, we finalized our preliminary purchase price allocation for our NCR Asset
Acquisition. See Note 3: Business Combinations in our Notes to Consolidated Financial Statements.
• During the second quarter of 2013, we entered into an arrangement to sell certain kiosks previously acquired from
NCR through the sale of a previously consolidated entity for $11.8 million. See Note 4: Property and Equipment and
Note 12: Income Taxes From Continuing Operations in our Notes to Consolidated Financial Statements.
• During the second quarter of 2013, we updated our methodology for amortizing our Redbox content library which
resulted in a $21.7 million reduction in Redbox direct operating expenses. See Note 2: Summary of Significant
Accounting Policies in our Notes to Consolidated Financial Statements.
Q1 2013 Events
• On March 12, 2013, we issued $350.0 million principal amount of 6.000% Senior Notes due 2019. See Note 8: Debt
and Other Long-Term Liabilities in our Notes to Consolidated Financial Statements.
• On March 14, 2013, Redbox Instant by Verizon concluded its public beta launch and began commercial launch of its
nationwide “over-the-top” video distribution service delivered via broadband networks combined with physical DVD
and Blu-ray™ discs rentals from our kiosks.
Subsequent Events
• During January 2014, we repurchased 736,000 shares of our common stock with an average price of $67.93 per share
for $50.0 million. The repurchases were made under a pre-arranged stock trading plan in accordance with guidelines
specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and our policies regarding stock
transactions (the “10b5-1 Plan”). The shares repurchased under the 10b5-1 Plan were recorded as treasury shares and
made in accordance with current share repurchase authorizations of the Board. See Note 21: Subsequent Events in our
Notes to Consolidated Financial Statements.
• On January 30, 2014, Outerwall’s Board of Directors authorized additional common stock repurchases of up to $500.0
million plus the cash proceeds received from the exercise of stock options by our officers, directors, and employees,
bringing the total available for repurchases as of February 3, 2014 to approximately $650.0 million, inclusive of the
impact of the 10b5-1 Plan repurchases. In connection with this increased authorization, the Board also authorized a
tender offer for up to $350.0 million with the option to increase the tender by up to 2% of outstanding shares. We
expect to launch with a price range based on a 5% to 20% premium over the last reported sale price on February 6,
2014. Repurchases under the tender offer would come from this existing repurchase authorization. See Note 21:
Subsequent Events in our Notes to Consolidated Financial Statements.
Results of Operations