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Asset Retirement Obligations
12 Months Ended
Dec. 31, 2016
Asset Retirement Obligations  
Asset Retirement Obligations

(11) Asset Retirement Obligations 

 

AROs consist primarily of costs to deinstall the Company’s ATMs and restore the ATM sites to their original condition, which are estimated based on current market rates. In most cases, the Company is contractually required to perform this deinstallation and in some cases, site restoration work. For each group of similar ATM type, the Company has recognized the estimated fair value of the ARO as a liability in the accompanying Consolidated Balance Sheets and capitalized that cost as part of the cost basis of the related asset. The related assets are depreciated on a straight-line basis over five years, which is the estimated average time period that an ATM is installed in a location before being deinstalled, and the related liabilities are accreted to their full value over the same period of time. During the years ended December 31, 2016 and 2015, the Company revised certain estimated future liabilities to account for certain cost estimate changes, minor changes in practices for administering deinstall costs, and actual experience. The changes in estimated future costs were recorded as a reduction in the carrying amount of the remaining unamortized asset and will primarily reduce the Company’s depreciation and accretion expense amounts prospectively. Where there was no net book value of related assets remaining, the Company reduced its depreciation and accretion expense.

 

The changes in the Company’s ARO liability consisted of the following:

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

December 31, 2015

 

 

(In thousands)

Asset retirement obligation as of the beginning of the period

 

$

54,727

 

$

55,136

Additional obligations

 

 

8,720

 

 

7,660

Accretion expense

 

 

1,803

 

 

2,210

Change in estimates

 

 

(1,638)

 

 

(4,878)

Payments

 

 

(4,351)

 

 

(3,499)

Foreign currency translation adjustments

 

 

(4,354)

 

 

(1,902)

Total asset retirement obligation at the end of the period

 

 

54,907

 

 

54,727

Less: current portion of asset retirement obligation

 

 

9,821

 

 

3,042

Asset retirement obligation, excluding current portion

 

$

45,086

 

$

51,685

 

For additional information related to the Company’s AROs with respect to its fair value measurements, see Note 16. Fair Value Measurements.