Redbox 2014 Annual Report Download - page 98

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90
Dollars in thousands
Year Ended December 31, 2012 Redbox Coinstar New Ventures
Corporate
Unallocated Total
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,908,773 $ 290,761 $ 350 $ — $ 2,199,884
Expenses:
Direct operating . . . . . . . . . . . . . . . . . . . . . 1,340,899 155,740 1,317 863 1,498,819
Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . 20,497 4,938 478 66 25,979
Research and development . . . . . . . . . . . . . 739 4,455 1,229 334 6,757
General and administrative . . . . . . . . . . . . . 159,885 26,367 6,283 11,984 204,519
Segment operating income (loss). . . . . . . . . . . . 386,753 99,261 (8,957)(13,247) 463,810
Less: depreciation and amortization . . . . . . (148,068) (36,108)(229)—
(184,405)
Operating income (loss). . . . . . . . . . . . . . . . . . . 238,685 63,153 (9,186)(13,247) 279,405
Loss from equity method investments, net .———
(5,184)(5,184)
Interest expense, net . . . . . . . . . . . . . . . . . . ———
(15,648)(15,648)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . ———
(180)(180)
Income (loss) before income taxes . . . . . . . . . . $ 238,685 $ 63,153 $ (9,186)$ (34,259) $ 258,393
Significant Retailer Relationships
Our Redbox and Coinstar kiosks are primarily located within retailers. The following retailers accounted for 10% or more of
our consolidated revenue:
Year Ended December 31,
2014 2013 2012
Wal-Mart Stores Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.5% 15.3% 16.0%
Walgreen Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.7% 14.6% 16.0%
The Kroger Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.7% 10.0% 10.7%
Revenue and Long-lived Assets by Geographic Location
Revenue is allocated to geographic locations based on the location of the kiosk. Revenue by geographic location was as
follows:
Years Ended December 31,
Dollars in thousands 2014 2013 2012
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,242,753 $ 2,254,790 $ 2,154,943
All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,250 51,811 44,941
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,303,003 $ 2,306,601 $ 2,199,884
Long-lived assets by geographic location were as follows:
Years Ended December 31,
Dollars in thousands 2014 2013 2012
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,028,516 $ 1,141,299 $ 975,334
All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,559 43,774 30,884
Total long-lived assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,072,075 $ 1,185,073 $ 1,006,218
Note 15: Retirement Plans
We sponsor a defined contribution plan for our employees who satisfy certain age and service requirements. Our Redbox
subsidiary also sponsors a defined contribution plan to which new contributions were frozen effective January 1, 2010. Our
contributions to these plans were $4.3 million, $4.9 million and $4.0 million in 2014, 2013 and 2012, respectively.