Asset Retirement Obligations

12 Months Ended

Dec. 31, 2020

Asset Retirement Obligation Disclosure [Abstract]

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 and depreciates the ARO assets on a straight-line basis over their estimated useful lives, 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:


	December 31, 2020		December 31, 2019
	(In thousands)
Beginning balance asset retirement obligations	$	61,195	$	61,223
Additional obligations	4,637		3,721

Accretion expense	1,928		1,540
Change in estimates	—		—
Payments	(5,709)		(6,041)
Foreign currency translation adjustments	1,439		752
Ending balance asset retirement obligations	63,490		61,195
Less: current portion of asset retirement obligations	6,517		5,701
Ending balance asset retirement obligations, excluding current portion	$	56,973	$	55,494

For additional information related to the Company’s ARO with respect to its fair value measurements, see Note 18. Fair Value Measurements.