Redbox 2014 Annual Report Download - page 79

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71
Assuming no future impairment, the expected future amortization as of December 31, 2014 is as follows:
Dollars in thousands
Retailer
Relationships
Developed
Technology Other Total
2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,012 $ 6,800 $ 2,407 $ 13,219
2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,012 6,800 2,307 13,119
2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,012 6,800 2,285 13,097
2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,012 3,967 1,664 9,643
2019. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,012 — 801 4,813
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,035 — 765 10,800
Total expected amortization. . . . . . . . . . . . . $ 30,095 $ 24,367 $ 10,229 $ 64,691
Note 5: Equity Method Investments and Related Party Transactions
Redbox Instant™ by Verizon
In February 2012, Redbox and Verizon Ventures IV LLC (“Verizon”), a wholly owned subsidiary of Verizon Communications
Inc., entered into a Limited Liability Company Agreement (the “LLC Agreement”) and related arrangements. The LLC
Agreement governs the relationship of the parties with respect to a joint venture, Redbox Instant by Verizon (the “Joint
Venture”). Redbox initially acquired a 35.0% ownership interest in the Joint Venture and made an initial capital contribution of
$14.0 million in cash in February 2012 subsequent to the formation of the Joint Venture. The following table summarizes
Redbox's initial cash capital contribution and subsequent cash capital contributions representing its pro-rata share of requests
made by the Joint Venture board of managers:
Dollars in thousands Cash Contributions
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,500
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,000
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,500
Total cash capital contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 77,000
On October 19, 2014, the Company and Verizon entered into an agreement whereby we would withdraw from the Joint Venture
effective October 20, 2014. Pursuant to the Withdrawal Agreement, all of Redbox’s rights under the Joint Venture’s operating
agreement were extinguished for a total payment of $16.8 million made to Redbox and no further capital contributions were
required. The $16.8 million payment received was composed of an $11.8 million expense reimbursement payment to satisfy all
outstanding amounts due and additional expenses incurred by Redbox inclusive of transition services performed for the Joint
Venture to Redbox and a $5.0 million extinguishment payment which is included within Income (loss) from equity method
investments within our Consolidated Statements of Comprehensive Income.
Other Equity Method Investments
We include our equity method investments within other long-term assets on our Consolidated Balance Sheets. As of
December 31, 2014 our $1.5 million investment in SoloHealth, Inc., representing 10% ownership, was our only equity method
investment.
Since we acquired ecoATM on July 23, 2013, the results of ecoATM operations, with the exception of expense for rights to
receive cash which are unallocated corporate expenses, are included in our New Ventures segment. See Note 14: Business
Segments and Enterprise-Wide Information for more information.