Asset Retirement Obligations

9 Months Ended

Sep. 30, 2020

Asset Retirement Obligation Disclosure [Abstract]

(10) Asset Retirement Obligations

Asset retirement obligations (“ARO”) consist of costs to deinstall the Company’s ATMs and restore the ATM sites to their original condition. These costs to deinstall ATMs are estimated based on current market rates. In most cases, the Company is contractually required to perform the deinstallation of company-owned ATMs and, in some cases, site restoration work. For each group of similar ATM placements, the Company estimates the fair value of the future ARO based on the discounted estimated future cash flows and recognizes the amount as a liability in the Consolidated Balance Sheets. The Company capitalizes the initial estimated fair value of the future ARO as part of the cost basis of the related assets and depreciates the ARO assets on a straight-line basis over their estimated useful lives, which are based on the average time period that an ATM is

installed in a location before being deinstalled. The ARO liabilities, which are recognized at discounted amounts, are accreted to their estimated future value over the same period of time.

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





Asset retirement obligations at December 31, 2019	$	61,194
Additional obligations	2,825
Accretion expense	1,204

Payments	(4,196)
Foreign currency translation adjustments	(755)
Asset retirement obligations at September 30, 2020	60,272
Less: current portion of asset retirement obligations (see Note 12. Other Liabilities)	(5,665)
Asset retirement obligations, excluding current portion, at September 30, 2020	$	54,607

For additional information related to the Company’s ARO with respect to its fair value measurements, see Note 14. Fair Value Measurements.