Redbox 2014 Annual Report Download - page 57

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49
Contractual Payment Obligations
Dollars in thousands Total 2015
2016 &
2017
2018 &
2019
2020 &
Beyond
Long-term debt and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 956,250 $ 169,390 $ 28,140 $ 18,750 $ 739,970
Contractual interest on long-term debt . . . . . . . . . . . . . . . . . . . . . . . 203,813 38,625 77,250 38,625 49,313
Capital lease obligations(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000 11,475 3,921 502 102
Operating lease obligations(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,999 18,527 24,807 21,493 8,172
Purchase obligations(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,971 57,758 4,213 — —
Asset retirement obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,576———13,576
Content agreement obligations(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 476,072 416,683 59,389 — —
Retailer revenue share obligations(1) . . . . . . . . . . . . . . . . . . . . . . . . . 6,627 3,196 3,268 163 —
Total(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,807,308 $ 715,654 $ 200,988 $ 79,533 $ 811,133
(1) See Note 17: Commitments and Contingencies in our Notes to Consolidated Financial Statements.
(2) Excludes any amounts associated with the manufacturing and services agreement entered into as part of the NCR Asset
Acquisition, pursuant to which Outerwall, Redbox or an affiliate will purchase goods and services from NCR for a
period of five years from June 22, 2012. At the end of the five-year period, if the aggregate amount paid in margin to
NCR for goods and services delivered equals less than $25.0 million, Outerwall will pay NCR the difference between
such aggregate amount and $25.0 million. As of December 31, 2014, the remaining commitment is $15.8 million under
this agreement.
(3) Income tax liabilities for uncertain tax positions were excluded as we are not able to make a reasonably reliable estimate
of the amount and period of related future payments. As of December 31, 2014, we had $4.6 million of gross
unrecognized tax benefits for uncertain tax positions.
Off-Balance Sheet Arrangements
Other than certain contractual arrangements listed above, we do not have any off-balance sheet arrangements that have or are
reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues
or expenses, results of operations, liquidity, capital expenditures or capital resources. For additional information see Note 17:
Commitments and Contingencies in our Notes to Consolidated Financial Statements.
Inflation
We believe that the impact of inflation was minimal on our business in 2014, 2013 and 2012.
Critical Accounting Policies
Our consolidated financial statements have been prepared in accordance with U.S. GAAP. Preparation of these statements
requires management to make judgments and estimates. We base our estimates on historical experience and on other
assumptions that we believe to be reasonable under the present circumstances.
Significant estimates underlying our consolidated financial statements include the:
• useful lives and salvage values of our content library;
• determination of goodwill impairment;
• lives of equipment and other long-lived assets;
• recognition and measurement of current and long-term deferred income taxes (including the measurement of uncertain
tax positions);
• recognition and measurement of purchase price allocation for business combinations; and
• loss contingencies.
It is reasonably possible that the estimates we make may change in the future and could have a material effect on our financial
statements.