Redbox 2014 Annual Report Download - page 91

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83
Note 10: Restructuring
During the fourth quarter of 2013, as a result of a comprehensive operational review, we committed to a restructuring plan
intended to, among other things, better align our cost structure with revenue growth in our core businesses. As part of the plan,
we discontinued the Rubi, Crisp Market, and Star Studio concepts in our New Ventures operating segment (see Note 12:
Discontinued Operations for further information). Also as part of the restructuring plan, we implemented actions to reduce costs
in our continuing operations primarily through workforce reductions across the Company. The closure of all discontinued
ventures and the workforce reductions were completed in 2014 and we expect no further restructuring charges.
The detail of restructuring charges incurred by reportable segment (on an allocated basis) and expense type is as follows:
Dollars in thousands
Cumulative as of
December 31, 2014
Year Ended
December 31, 2014
Year Ended
December 31, 2013
Redbox
Severance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,306 $ 535 $ 3,771
Coinstar
Severance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747 23 724
Discontinued Operations
Severance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,026 155 871
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,873 435 1,438
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,952 $ 1,148 $ 6,804
A reconciliation of the beginning and ending liability balance by expense type is as follows:
Dollars in thousands Severance Other
Beginning balance - January 1, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $—$—
Costs charged to expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,366 1,438
Costs paid or otherwise settled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,858)(20)
Balance as of December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,508 1,418
Costs charged to expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713 435
Costs paid or otherwise settled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,221)(1,853)
Ending balance - December 31, 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $—$—
The line items in our Consolidated Statements of Comprehensive Income in which the expenses are recorded are as follows:
Year Ended December 31,
2014 2013
Dollars in thousands Severance Other Severance Other
Direct operating . . . . . . . . . . . . . . . . . . . . . . . . . . $ 410 $ — $ — $ —
General and administrative . . . . . . . . . . . . . . . . . 148 — 4,495 —
Loss from discontinued operations, net of tax. . . 155 435 871 1,438
Total expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 713 $ 435 $ 5,366 $ 1,438