(17) Commitments and Contingencies

Legal Matters

The Company is subject to various legal proceedings and claims arising in the ordinary course of its business. The Company has provided reserves where necessary for all claims and the Company’s management does not expect the outcome in any legal proceedings, individually or collectively, to have a material adverse financial or operational impact on the Company. Additionally, the Company currently expenses all legal costs as they are incurred.

Operating Lease Obligations

The Company was a party to several operating leases as of December 31, 2017, primarily for office space and the rental of space at certain merchant locations.

Future minimum lease payments under the Company’s operating and merchant space leases (with initial lease terms in excess of one year) as of December 31, 2017, for each of the next five years and thereafter are as following (in thousands):


2018	$	14,951
2019		10,029
2020		7,645
2021		5,892
2022		3,504
Thereafter		9,702
Total	$	51,723

Total rental expense under the Company’s operating leases, net of sublease income, was $15.5 million, $15.1 million, and $14.1 million for the years ended December 31, 2017, 2016, and 2015, respectively.

Other Commitments

Asset retirement obligations. The Company’s AROs consist primarily of deinstallation costs of the Company’s ATMs and costs to restore the ATM sites to their original condition. In most cases, the Company is legally required to perform this deinstallation, and in some cases, the site restoration work. The Company had $69.8 million accrued for these liabilities as of December 31, 2017. For additional information, see Note 11. Asset Retirement Obligations.

Acquisition-related contingent consideration. As a result of the Spark acquisition, the Company has recorded an acquisition-related contingent consideration liability of $42.6 million as of December 31, 2017. For additional information related to the Spark acquisition contingent consideration, see Note 2. Acquisitions and Divestitures.

Purchase commitments. During the normal course of business, the Company issues purchase orders for various products. As of December 31, 2017, the Company had open purchase commitments of $2.5 million for products to be delivered in 2018. Other material purchase commitments as of December 31, 2017 included $0.8 million in minimum service requirements for certain gateway and processing fees over the next three years.