ASSET RETIREMENT OBLIGATION

12 Months Ended

Dec. 31, 2018

Asset Retirement Obligation Disclosure [Abstract]

The Company’s asset retirement obligation is reported in “Other long-term liabilities” with the current portion recorded in “Accrued liabilities” and relates to its obligation to dismantle and remove outdoor advertising displays from leased land and to reclaim the site to its original condition upon the termination or non-renewal of a lease or contract. When the liability is recorded, the cost is capitalized as part of the related long-lived assets’ carrying value. Due to the high rate of lease renewals over a long period of time, the calculation assumes that all related assets will be removed at some period over the next 55 years. An estimate of third-party cost information is used with respect to the dismantling of the structures and the reclamation of the site. The interest rate used to calculate the present value of such costs over the retirement period is based on an estimated risk adjusted credit rate for the same period.

The following table presents the activity related to the Company’s asset retirement obligation:



(In thousands)	Years Ended December 31,
	2018			2017
Beginning balance	$	47,984		$	42,491
Adjustment due to changes in estimates	1,297			2,317
Accretion of liability	3,273			3,555
Liabilities settled	(3,389		)	(2,880		)
Foreign Currency	(1,394		)	2,501
Ending balance	47,771			47,984
Less: current portion	445			891
Long-term portion of asset retirement obligation⁽¹⁾	$	47,326		$	47,093

⁽¹⁾Balance as of December 31, 2018 includes $3.3 million, which has been reclassified to Liabilities subject to compromise.