Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

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 contingent liabilities, based on ASC 450, contingencies, when it has determined that a liability is probable and reasonably estimable. The Company’s management does not expect the outcome in any legal proceedings or claims, 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 Leases

As of December 31, 2019, the Company was a party to numerous operating leases including leases of facilities, vehicles, and office equipment as well as ATM placement agreements that are deemed to contain an operating lease of merchant space under the applicable lease accounting guidance. The payment obligations and rental expense under the Company’s operating leases are presented in Note 17. Leases.

Other Commitments 

Asset retirement obligations. The Company’s ARO consist primarily of costs to deinstall the Company’s ATMs and to restore the ATM sites to their original condition. In most cases, the Company is contractually required to perform this deinstallation of its owned ATMs, and in some cases, the site restoration work. The Company had $61.2 million accrued for these liabilities as of December 31, 2019. For additional information, see Note 12. Asset Retirement Obligations.

Acquisition-related contingent consideration. As a result of the Spark acquisition, the Company accrued $16.9 million for the acquisition – related contingent consideration as of December 31, 2019. For additional information related to the Spark acquisition contingent consideration, see Note 1(v). Acquisitions.

Purchase commitments. During the normal course of business, the Company issues purchase orders for various products. As of December 31, 2019, the Company had open purchase commitments of $5.4 million for products to be delivered in 2020. Other material purchase commitments as of December 31, 2019 included $1.9 million in minimum service requirements for certain gateway and processing fees over the next seven years.