Redbox 2015 Annual Report Download - page 80

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Pro forma information
The following unaudited pro forma information represents the results of operations for Outerwall Inc. and includes the Gazelle
business acquired as if the acquisition was consummated as of January 1, 2014.
Years Ended December 31,
(Unaudited)
Dollars in thousands 2015 2014
Pro-forma revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,264,467 $ 2,378,508
Pro-forma income from continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,524 $ 114,641
The unaudited pro forma results have been adjusted with respect to certain aspects of our acquisition of Gazelle to reflect:
• changes in assets to record their acquisition date fair values and the resulting changes in amortization;
• adjustments for the bargain purchase gain and costs related to the acquisition; and
• the income tax impact of the pro forma adjustments at a combined federal and state statutory rate of 37.5%.
The unaudited pro forma results do not reflect future events that may occur after the acquisition, including, but not limited to,
the anticipated realization of ongoing savings from operating synergies in subsequent periods.
Note 4: Prepaid Expenses and Other Current Assets and Other Accrued Liabilities
Prepaid expenses and other current assets
December 31,
Dollars in thousands 2015 2014
Spare parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,780 $ 13,643
Licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,394 5,881
Electronic devices inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,846 5,259
Income taxes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,517 95
Prepaid rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,043 1,446
DVD cases and labels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,371 1,330
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,417 12,165
Total prepaid and other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 51,368 $ 39,819
Other accrued liabilities
December 31,
Dollars in thousands 2015 2014
Payroll related expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,676 $ 33,343
Studio revenue share and other content related expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,964 23,226
Business taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,080 21,629
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,594 9,615
Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,201 6,995
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 9,463
Accrued interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,913 6,974
Accrued early lease termination and sublease expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,991 —
Service contract provider expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,070 4,191
Deferred rent expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,728 6,162
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,204 15,528
Total other accrued liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 141,437 $ 137,126
72