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53
OUTERWALL INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2013, 2012, 2011
NOTE 1: ORGANIZATION AND BUSINESS
Description of Business
We are a leading provider of automated retail solutions offering convenient products and services that benefit consumers and
drive incremental retail traffic and revenue for retailers.
On June 27, 2013, our name change from Coinstar, Inc. to Outerwall Inc. was approved by stockholders. The name change
reflects the evolution of our company from a single coin-counting kiosk business into multiple automated retail businesses. The
name Outerwall was selected as an umbrella corporate brand that encompasses our current operations and provides a platform
for future automated retail opportunities. As part of our name change, we changed the name of our Coin business segment to
the Coinstar business segment.
Our core offerings in automated retail include our Redbox and Coinstar segments. Our Redbox segment consists of self-service
kiosks where consumers can rent or purchase movies and video games. Our Coinstar segment consists of self-service coin-
counting kiosks where consumers can convert their coins to cash or stored value products. Our New Ventures segment is
focused on identifying, evaluating, building, or acquiring and developing innovative self-service concepts in the marketplace.
New Ventures concepts are regularly assessed to determine whether continued funding or other alternatives are appropriate.
During the fiscal year ended December 31, 2013, we purchased ecoATM, Inc., which provides an automated self-service kiosk
system to purchase used mobile phones, tablets and MP3 players for cash, (See Note 3: Business Combinations for more
information) and discontinued certain concepts within our New Ventures segment (See Note 13: Discontinued Operations and
Sale of Business). Our kiosks are located primarily in supermarkets, drug stores, mass merchants, financial institutions,
convenience stores, malls and restaurants. Our kiosk and location counts as of December 31, 2013, are as follows:
Kiosks Locations
Redbox(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,000 36,400
Coinstar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,900 20,600
New Ventures(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900 670
Total(1) (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,800 57,670
(1) As of December 31, 2013, no kiosks acquired from NCR remained in service. See Note 3: Business Combinations for
more information on the NCR Asset Acquisition.
(2) Includes approximately 700 kiosks acquired through the purchase of ecoATM, Inc. See Note 3: Business
Combinations for more information. As of December 31, 2013, there were over 800 ecoATM kiosks in service.
Excludes kiosks related to concepts discontinued during the fiscal year ended December 31, 2013, See Note 13:
Discontinued Operations and Sale of Business.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Outerwall Inc. and our wholly-owned
subsidiaries. Investments in companies of which we may have significant influence, but not a controlling interest, are
accounted for using the equity method of accounting. All significant intercompany balances and transactions have been
eliminated in consolidation.
Use of Estimates in Financial Reporting
We prepare our financial statements in conformity with accounting principles generally accepted in the U.S. which requires
management to make estimates and assumptions that affect the reported amounts in our consolidated financial statements and
our notes thereto. The most significant estimates and assumptions include the:
• useful lives and salvage values of our content library;