(21) Supplemental Guarantor Financial Information

Prior to the Redomicile Transaction, the 2022 Notes were fully and unconditionally guaranteed, subject to certain customary release provisions, on a joint and several basis by certain wholly-owned subsidiaries of Cardtronics Delaware. On July 1, 2016, Cardtronics plc and certain of its subsidiaries became Guarantors of the 2022 Notes pursuant to the Senior Notes Supplemental Indenture entered into in conjunction with the Redomicile Transaction. As of December 31, 2016, the 2022 Notes were fully and unconditionally guaranteed, subject to certain customary release provisions, on a joint and several basis by Cardtronics plc and these subsidiaries (including the original Cardtronics Delaware subsidiary Guarantors). Cardtronics Delaware, the subsidiary issuer of the 2022 Notes, is 100% owned by Cardtronics plc, the parent Guarantor.

The guarantees of the 2022 Notes by any Guarantor (other than Cardtronics plc) are subject to automatic and customary releases upon: (i) the sale or disposition of all or substantially all of the assets of the Guarantor, (ii) the disposition of sufficient common shares of the Guarantor so that it no longer qualifies under the Indenture as a restricted subsidiary of Cardtronics plc, (iii) the designation of the Guarantor as unrestricted in accordance with the Indenture, (iv) the legal or covenant defeasance of the notes or the satisfaction and discharge of the Indenture, (v) the liquidation or dissolution of the Guarantor, or (vi) provided the Guarantor is not wholly-owned by Cardtronics plc, its ceasing to guarantee other indebtedness the Cardtronics plc, Cardtronics Delaware, or another Guarantor. A Guarantor (other than Cardtronics plc) may not sell or otherwise dispose of all or substantially all of its properties or assets to, or consolidate with or merge with or into, another company (other than Cardtronics plc, Cardtronics Delaware, or another Guarantor), unless no default under the Indenture exists and either the successor to the Guarantor assumes its guarantee of the 2022 Notes or the disposition, consolidation, or merger complies with the Asset Sales covenant in the Indenture. In addition, Cardtronics plc may not sell or otherwise dispose of all or substantially all of its properties or assets to, or consolidate with or merge with or into, another company (other than Cardtronics Delaware or another Guarantor), unless, among other things, no default under the Indenture exists, the successor to Cardtronics plc is a domestic entity and assumes Cardtronics plc’s guarantee of the 2022 Notes and transaction (on a pro forma basis) satisfies certain criteria related to the Fixed Charge Coverage Ratio (as defined in the Indenture).

The following information reflects the Condensed Consolidating Statements of Comprehensive Income and Condensed Consolidated Statements of Cash Flows for the years ended December 31, 2016, 2015, and 2014 and the Condensed Consolidating Balance Sheets as of December 31, 2016 and 2015 for: (i) Cardtronics plc, the parent Guarantor (“Parent”), as of December 31, 2016, (ii) Cardtronics Delaware (“Issuer”), (iii) the Guarantors, and (iv) the Non-Guarantors. The statements for the 2014 and 2015 periods have been revised to present the financial results of these entities in a manner that is consistent with the Company’s organizational structure as of December 31, 2016.

Condensed Consolidating Statements of Comprehensive Income


	Year Ended December 31, 2016
	Parent		Issuer		Guarantors		Non-Guarantors		Eliminations		Total
	(In thousands)
Revenues	$	—	$	—	$	869,992	$	406,345	$	(10,973)	$	1,265,364
Operating costs and expenses		18,166		22,565		742,690		346,537		(10,973)		1,118,985
(Loss) income from operations		(18,166)		(22,565)		127,302		59,808		—		146,379
Interest expense (income), net, including amortization of deferred financing costs and note discount		—		25,188		30,804		(27,103)		—		28,889
Equity in earnings of subsidiaries		(105,806)		(102,835)		(61,271)		—		269,912		—
Other expense (income)		263		(19,838)		(11,271)		4,475		29,329		2,958
Income before income taxes		87,377		74,920		169,040		82,436		(299,241)		114,532
Income tax (benefit) expense		(533)		(10,889)		33,904		4,140		—		26,622
Net income		87,910		85,809		135,136		78,296		(299,241)		87,910
Net loss attributable to noncontrolling interests		—		—		—		—		(81)		(81)
Net income attributable to controlling interests and available to common shareholders		87,910		85,809		135,136		78,296		(299,160)		87,991
Other comprehensive (loss) income attributable to controlling interests		(18,991)		(8,793)		(12,163)		633		20,323		(18,991)
Comprehensive income attributable to controlling interests	$	68,919	$	77,016	$	122,973	$	78,929	$	(278,837)	$	69,000


	Year Ended December 31, 2015
	Parent		Issuer		Guarantors		Non-Guarantors		Eliminations		Total
	(In thousands)
Revenues	$	—	$	—	$	794,145	$	417,181	$	(11,025)	$	1,200,301
Operating costs and expenses		—		4,945		684,846		381,606		(11,013)		1,060,384
(Loss) income from operations		—		(4,945)		109,299		35,575		(12)		139,917
Interest expense, net, including amortization of deferred financing costs and note discount		—		22,633		5,650		2,531		—		30,814
Equity in earnings of subsidiaries		(65,981)		964		(1,171)		—		66,188		—
Other (income) expense		—		(177)		(4,073)		8,017		13		3,780
Income (loss) before income taxes		65,981		(28,365)		108,893		25,027		(66,213)		105,323
Income tax (benefit) expense		—		(12,044)		44,246		7,140		—		39,342
Net income (loss)		65,981		(16,321)		64,647		17,887		(66,213)		65,981
Net loss attributable to noncontrolling interests		—		—		—		—		(1,099)		(1,099)
Net income (loss) attributable to controlling interests and available to common shareholders		65,981		(16,321)		64,647		17,887		(65,114)		67,080
Other comprehensive (loss) income attributable to controlling interests		(5,780)		(10,404)		14,632		(9,347)		5,119		(5,780)
Comprehensive income (loss) attributable to controlling interests	$	60,201	$	(26,725)	$	79,279	$	8,540	$	(59,995)	$	61,300


	Year Ended December 31, 2014
	Parent		Issuer		Guarantors		Non-Guarantors		Eliminations		Total
	(In thousands)
Revenues	$	—	$	—	$	731,618	$	334,358	$	(11,155)	$	1,054,821
Operating costs and expenses		—		4,656		631,595		325,159		(11,228)		950,182
(Loss) income from operations		—		(4,656)		100,023		9,199		73		104,639
Interest expense, net, including amortization of deferred financing costs and note discount		—		21,749		10,352		1,711		—		33,812
Redemption cost for early extinguishment of debt		—		9,075		—		—		—		9,075
Equity in earnings of subsidiaries		(35,194)		(83,903)		59,493		—		59,604		—
Other (income) expense		—		(3,807)		(6,060)		8,638		(387)		(1,616)
Income (loss) before income tax		35,194		52,230		36,238		(1,150)		(59,144)		63,368
Income tax (benefit) expense		—		(12,162)		37,182		3,154		—		28,174
Net income (loss)		35,194		64,392		(944)		(4,304)		(59,144)		35,194
Net loss attributable to noncontrolling interests		—		—		—		—		(1,946)		(1,946)
Net income (loss) attributable to controlling interests and available to common shareholders		35,194		64,392		(944)		(4,304)		(57,198)		37,140
Other comprehensive (loss) income attributable to controlling interests		(10,012)		(4,582)		9,688		(15,158)		10,052		(10,012)
Comprehensive income (loss) attributable to controlling interests	$	25,182	$	59,810	$	8,744	$	(19,462)	$	(47,146)	$	27,128

Condensed Consolidating Balance Sheets


	As of December 31, 2016
	Parent		Issuer		Guarantors		Non-Guarantors		Eliminations		Total
	(In thousands)
Assets
Cash and cash equivalents	$	101	$	7	$	1,823	$	71,603	$	—	$	73,534
Accounts and notes receivable, net		—		—		57,201		26,955		—		84,156
Other current assets		—		1,468		50,438		59,941		—		111,847
Total current assets		101		1,475		109,462		158,499		—		269,537
Property and equipment, net		—		—		257,133		135,602		—		392,735
Intangible assets, net		—		—		88,141		33,089		—		121,230
Goodwill		—		—		449,658		83,417		—		533,075
Investments in and advances to subsidiaries		452,029		1,105,307		921,962		—		(2,479,298)		—
Intercompany receivable		12,965		297,790		207,048		1,660,511		(2,178,314)		—
Deferred tax asset, net		534		—		—		12,470		—		13,004
Prepaid expenses, deferred costs, and other noncurrent assets		—		504		22,098		12,513		—		35,115
Total assets	$	465,629	$	1,405,076	$	2,055,502	$	2,096,101	$	(4,657,612)	$	1,364,696
Liabilities and Shareholders’ Equity
Current portion of other long-term liabilities		—		—		22,871		5,366		—		28,237
Accounts payable and accrued liabilities		—		17,152		178,452		89,979		—		285,583
Total current liabilities		—		17,152		201,323		95,345		—		313,820
Long-term debt		—		502,539		—		—		—		502,539
Intercompany payable		8,694		82,660		1,171,795		915,165		(2,178,314)		—
Asset retirement obligations		—		—		21,747		23,339		—		45,086
Deferred tax liability, net		—		—		24,953		2,672		—		27,625
Other long-term liabilities		—		504		14,306		3,881		—		18,691
Total liabilities		8,694		602,855		1,434,124		1,040,402		(2,178,314)		907,761
Shareholders’ equity		456,935		802,221		621,378		1,055,699		(2,479,298)		456,935
Total liabilities and shareholders’ equity	$	465,629	$	1,405,076	$	2,055,502	$	2,096,101	$	(4,657,612)	$	1,364,696


	As of December 31, 2015
	Parent		Issuer		Guarantors		Non-Guarantors		Eliminations		Total
	(In thousands)
Assets
Cash and cash equivalents	$	—	$	782	$	6,200	$	19,315	$	—	$	26,297
Accounts and notes receivable, net		—		—		36,961		35,048		—		72,009
Current portion of deferred tax asset, net		—		—		16,169		131		—		16,300
Other current assets		—		1,878		47,398		49,642		—		98,918
Total current assets		—		2,660		106,728		104,136		—		213,524
Property and equipment, net		—		—		231,961		143,527		—		375,488
Intangible assets, net		—		1,396		106,863		42,521		—		150,780
Goodwill		—		—		449,658		99,278		—		548,936
Investments in and advances to subsidiaries		369,793		1,259,646		383,629		—		(2,013,068)		—
Intercompany receivable		—		407,349		246,761		149,351		(803,461)		—
Deferred tax asset, net		—		—		—		11,950		—		11,950
Prepaid expenses, deferred costs, and other noncurrent assets		—		200		6,863		12,194		—		19,257
Total assets	$	369,793	$	1,671,251	$	1,532,463	$	562,957	$	(2,816,529)	$	1,319,935
Liabilities and Shareholders’ Equity
Current portion of other long-term liabilities		—		—		30,552		2,180		—		32,732
Accounts payable and accrued liabilities		—		12,109		143,391		89,408		—		244,908
Total current liabilities		—		12,109		173,943		91,588		—		277,640
Long-term debt		—		548,496		—		19,835		—		568,331
Intercompany payable		—		152,867		403,536		247,058		(803,461)		—
Asset retirement obligations		—		—		25,360		26,325		—		51,685
Deferred tax liability, net		—		—		19,884		1,945		—		21,829
Other long-term liabilities		—		200		28,752		1,705		—		30,657
Total liabilities		—		713,672		651,475		388,456		(803,461)		950,142
Shareholders’ equity		369,793		957,579		880,988		174,501		(2,013,068)		369,793
Total liabilities and shareholders’ equity	$	369,793	$	1,671,251	$	1,532,463	$	562,957	$	(2,816,529)	$	1,319,935

Condensed Consolidated Statement of Cash Flows


	Year Ended December 31, 2016
	Parent		Issuer		Guarantors		Non-Guarantors		Eliminations		Total
	(In thousands)
Net cash (used in) provided by operating activities	$	(1,106)	$	60,033	$	98,033	$	113,315	$	—	$	270,275
Additions to property and equipment		—		—		(70,468)		(55,414)		—		(125,882)
Acquisitions, net of cash acquired		—		—		(17,512)		(5,157)		—		(22,669)
Proceeds from sale of assets and businesses		—		—		—		9,348		—		9,348
Net cash used in investing activities		—		—		(87,980)		(51,223)		—		(139,203)
Proceeds from borrowings under revolving credit facility		—		198,826		—		36,542		—		235,368
Repayments of borrowings under revolving credit facility		—		(255,727)		—		(55,635)		—		(311,362)
Funding of intercompany notes payable		—		248		(14,430)		14,182		—		—
Proceeds from exercises of stock options		526		147		—		—		—		673
Additional tax benefit (expense) related to share-based compensation		681		(343)		—		—		—		338
Repurchase of common shares		—		(3,959)		—		—		—		(3,959)
Net cash provided by (used in) financing activities		1,207		(60,808)		(14,430)		(4,911)		—		(78,942)
Effect of exchange rate changes on cash		—		—		—		(4,893)		—		(4,893)
Net increase (decrease) in cash and cash equivalents		101		(775)		(4,377)		52,288		—		47,237
Cash and cash equivalents as of beginning of period		—		782		6,200		19,315		—		26,297
Cash and cash equivalents as of end of period	$	101	$	7	$	1,823	$	71,603	$	—	$	73,534


	Year Ended December 31, 2015
	Parent		Issuer		Guarantors		Non-Guarantors		Eliminations		Total
	(In thousands)
Net cash (used in) provided by operating activities	$	—	$	(12,180)	$	164,345	$	104,018	$	370	$	256,553
Additions to property and equipment		—		—		(86,283)		(55,696)		(370)		(142,349)
Funding of intercompany notes payable, net		—		—		(750)		750		—		—
Acquisitions, net of cash acquired		—		—		(80,503)		(23,371)		—		(103,874)
Proceeds from sale of assets and businesses		—		—		—		36,661		—		36,661
Net cash used in investing activities		—		—		(167,536)		(41,656)		(370)		(209,562)
Proceeds from borrowings under revolving credit facility		—		379,400		—		73,270		—		452,670
Repayments of borrowings under revolving credit facility		—		(446,085)		—		(53,466)		—		(499,551)
Repayments of intercompany notes payable		—		81,286		—		(81,286)		—		—
Proceeds from exercises of stock options		—		1,107		—		—		—		1,107
Additional tax benefit related to share-based compensation		—		1,985		—		—		—		1,985
Repurchase of common shares		—		(4,731)		—		—		—		(4,731)
Net cash provided by (used in) financing activities		—		12,962		—		(61,482)		—		(48,520)
Effect of exchange rate changes on cash		—		—		—		(4,049)		—		(4,049)
Net increase (decrease) in cash and cash equivalents		—		782		(3,191)		(3,169)		—		(5,578)
Cash and cash equivalents as of beginning of period		—		—		9,391		22,484		—		31,875
Cash and cash equivalents as of end of period	$	—	$	782	$	6,200	$	19,315	$	—	$	26,297


	Year Ended December 31, 2014
	Parent		Issuer		Guarantors		Non-Guarantors		Eliminations		Total
	(In thousands)
Net cash provided by operating activities	$	—	$	1,463	$	123,255	$	63,855	$	(20)	$	188,553
Additions to property and equipment		—		—		(57,434)		(52,495)		20		(109,909)
Investment in subsidiary		—		(51,110)		(51,110)		—		102,220		—
Funding of intercompany notes payable, net		—		(51,803)		—		—		51,803		—
Acquisitions, net of cash acquired		—		—		(165,433)		(61,539)		—		(226,972)
Net cash used in investing activities		—		(102,913)		(273,977)		(114,034)		154,043		(336,881)
Proceeds from borrowings under revolving credit facility		—		127,657		—		—		—		127,657
Repayments of borrowings under revolving credit facility		—		(60,266)		(4)		(1,269)		—		(61,539)
Proceeds from borrowings of long-term debt		—		250,000		—		—		—		250,000
Repayments of long-term debt		—		(200,000)		—		—		—		(200,000)
Debt issuance, modification, and redemption costs		—		(14,746)		—		—		—		(14,746)
Repayments of intercompany notes payable		—		—		35,829		15,974		(51,803)		—
Payment of contingent consideration		—		—		(201)		(316)		—		(517)
Proceeds from exercises of stock options		—		810		—		—		—		810
Additional tax benefit related to share-based compensation		—		4,739		—		—		—		4,739
Repurchase of common shares		—		(7,156)		—		—		—		(7,156)
Issuance of common shares		—		—		51,110		51,110		(102,220)		—
Net cash provided by financing activities		—		101,038		86,734		65,499		(154,023)		99,248
Effect of exchange rate changes on cash		—		—		—		(5,984)		—		(5,984)
Net (decrease) increase in cash and cash equivalents		—		(412)		(63,988)		9,336		—		(55,064)
Cash and cash equivalents as of beginning of period		—		412		73,379		13,148		—		86,939
Cash and cash equivalents as of end of period	$	—	$	—	$	9,391	$	22,484	$	—	$	31,875