The Company is exposed to interest rate risk associated with its vault cash rental obligations and its variable rate debt. The Company uses varying notional amount interest rate swap contracts and interest rate cap agreements (“Interest Rate Derivatives”) to manage the interest rate risk associated with its vault cash rental obligations in the U.S., Canada, the U.K., and Australia. Intermittently, the Company has also used interest rate swap contracts to mitigate its exposure to floating interest rates on its variable rate debt.

The majority of the Company’s Interest Rate Derivatives serve to mitigate interest rate risk exposure by converting a portion of the Company’s monthly floating-rate vault cash rental payments to either monthly fixed-rate vault cash rental payments or to vault cash rental payments with a capped rate. Typically, the Company receives monthly floating-rate payments from its Interest Rate Derivative counterparties that correspond to, in all material respects, the monthly floating-rate payments that are paid by the Company to its vault cash rental providers for the portion of the average outstanding vault cash balances that have been hedged. The floating-rate payments may or may not be capped or limited. In return, the Company pays its counterparties a monthly fixed-rate amount based on the same notional amounts outstanding. By converting the vault cash rental and from time to time the interest on certain debt from floating-rate to a fixed or a capped rate, the impact of favorable and unfavorable changes in future interest rates on the monthly vault cash rental payments recognized in the Cost of ATM operating revenues line in the Consolidated Statement of Operations has been reduced.

As of June 30, 2020, the Company was not party to any interest rate swap or cap agreements associated with its variable rate debt. However, on July 30, 2020, the Company executed $250.0 million aggregate notional amount interest rate cap contracts that begin August 3, 2020 and terminate December 31, 2025. These interest rate cap contracts have a cap rate of 1% and have been designated as cash flow hedges of the floating rate interest associated with the Company’s Term Loan.

The Company is also exposed to foreign currency exchange rate risk with respect to its operations outside the U.S. The Company has at times used foreign currency forward contracts to mitigate its foreign exchange rate risk associated with certain anticipated transactions. The Company regularly designates its foreign currency derivatives as cash flow hedges, however, the Company is not presently party to any foreign currency derivatives designated as cash flow hedges.

On October 14, 2019, the Company entered into foreign currency forward contracts with an aggregate notional amount of $150 million and a fixed rate of 1.267 U.S. dollars to 1 U.K. pounds sterling. These forward contracts allowed for settlement between November 2, 2020 and December 1, 2020. Although not designated as hedging instruments for accounting purposes, these forward contracts were associated with the anticipated conversion of U.K. pounds sterling to U.S. dollars intended to partially fund the repayment of the Company's 1.00% Convertible Notes and serve to mitigate currency fluctuation risk. The Company recognized mark-to-market gains of $1.5 million and $12.0 million on these contracts in the three and six months ended June 30, 2020, respectively, and realized a gain of $4.1 million upon terminating these foreign currency contracts in June 2020. These contracts were terminated shortly after completion of the issuance of the new term loan, which provided sufficient funds to repay the Convertible Notes. The mark-to-market and realized gains on the Company's undesignated foreign currency forward contracts are recognized in the Other (income) expenses line of our Consolidated Statements of Operations.

The Interest Rate Derivatives discussed above are used by the Company to hedge its exposure to variability in expected future cash flows attributable to a particular risk and therefore typically qualify as and are designated as cash flow hedging instruments.

As discussed above, the Company generally utilizes fixed-for-floating Interest Rate Derivatives where the underlying pricing terms of the cash flow hedging instrument agree, in all material respects, with the pricing terms of the anticipated vault cash rental obligations or anticipated Credit Agreement borrowings. Therefore, the amount of ineffectiveness associated with the Interest Rate Derivatives has historically been immaterial. If the Company concludes 1) that the obligations that have been hedged are no longer probable or 2) that the underlying terms of the agreements have changed such that they do not sufficiently agree to the pricing terms of the Interest Rate Derivatives, the Interest Rate Derivative contracts would be deemed ineffective. The Company does not currently anticipate terminating or modifying terms of its existing Interest Rate Derivative instruments prior to their expiration dates.

The Company recognizes its Interest Rate Derivative contracts as assets or liabilities at fair value and the accumulated changes in the fair values of the related Interest Rate Derivative contracts are also reported net of taxes in Accumulated other comprehensive loss, net within the Consolidated Balance Sheets.

In accordance with U.S. GAAP, the Company reports the gain or loss related to each highly effective cash flow hedging instrument, including any ineffectiveness, as a component of Accumulated other comprehensive loss, net within the Consolidated Balance Sheets and reclassifies the gain or loss into earnings within the Cost of ATM operating revenues, Interest expense, net, or Other income lines of the Consolidated Statements of Operations in the same period or periods during which the hedged transaction affects and has been forecasted in earnings. The classification of the gain or loss is determined based on the associated hedge designation. For additional information related to the Company’s interest rate swap and cap contracts and the associated fair value measurements, see Note 14. Fair Value Measurements.

The notional amounts, weighted average fixed rates, and terms associated with the interest rate swap contracts and cap agreement that are currently in place in the U.S., Canada, the U.K, and Australia (as of the date of the issuance of this 2020 Form 10-Q) are as follows:


Notional Amounts U.S. $		Weighted Average Fixed Rate	Term
(In millions)
$	1,500	1.69%	July 1, 2020 – December 31, 2020
$	1,200	1.46%	January 1, 2021 – December 31, 2021
$	1,000	1.17%	January 1, 2022 – December 31, 2022
$	600	0.98%	January 1, 2023 – December 31, 2024

On June 30, 2020, the Company designated interest rate swap contracts with an aggregate notional amount of 50 million U.K. pounds sterling as cash flow hedges of its vault cash rental obligations. These swap contracts were not previously designated. These interest rate swaps have a remaining term ending December 31, 2020 at a fixed rate of 0.95%.

During the three months ended June 30, 2020, the Company determined that certain previously forecasted borrowings under the revolving credit facility were no longer anticipated primarily due to the completion of the Company's term loan facility issuance. On June 29, 2020, the Company terminated its interest rate swap contracts with an aggregate notional amount of 100 million U.K. pounds sterling. As a result, the Company recognized a net loss of $0.8 million upon settlement of the swaps terminated within the Other (income) expenses line of the Consolidated Statements of Operations. In addition, on June 30, 2020, the Company designated previously undesignated interest rate swap contracts with an aggregate notional amount of 50 million U.K. pounds sterling as a cash flow hedge on the Company's vault cash rental obligations.


	June 30, 2020				December 31, 2019
Asset (Liability) Derivative Instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
		(In thousands)			(In thousands)
Derivatives designated as hedging instruments:
Interest rate swap and cap contracts	Prepaid expenses, deferred costs, and other current assets	$	—	Prepaid expenses, deferred costs, and other current assets	$	1,872
Interest rate swap and cap contracts	Prepaid expenses, deferred costs, and other noncurrent assets	—		Prepaid expenses, deferred costs, and other noncurrent assets	8,766
Interest rate swap and cap contracts	Current portion of other long-term liabilities	(25,196)		Current portion of other long-term liabilities	(7,697)
Interest rate swap and cap contracts	Other long-term liabilities	(37,758)		Other long-term liabilities	(9,723)
Total derivatives designated as hedging instruments, net		$	(62,954)		$	(6,782)

Derivatives not designated as hedging instruments:

Foreign currency forward contracts	Current portion of other long-term liabilities	—		Current portion of other long-term liabilities	(7,868)
Total derivative instruments, net		$	(62,954)		$	(14,650)



	Three Months Ended June 30
Derivatives in Cash Flow Hedging Relationship	Amount of Loss Recognized in Accumulated Other Comprehensive Loss on Derivative Instruments					Location of (Loss) Gain Reclassified from Accumulated Other Comprehensive Loss into Income		Amount of (Loss) Gain Reclassified from Accumulated Other Comprehensive Loss into Income
	2020		2019			2020		2019
	(In thousands)							(In thousands)
Interest rate swap contracts	$	(10,563)	$	(13,474)	Cost of ATM operating revenues	$	(7,323)	$	120
Interest rate swap contracts	—		(69)		Interest expense, net	—		(57)
Total	$	(10,563)	$	(13,543)		$	(7,323)	$	63


	Six Months Ended June 30
Derivatives in Cash Flow Hedging Relationship	Amount of Loss Recognized in Accumulated Other Comprehensive Loss on Derivative Instruments					Location of (Loss) Gain Reclassified from Accumulated Other Comprehensive Loss into Income		Amount of (Loss) Gain Reclassified from Accumulated Other Comprehensive Loss into Income
	2020		2019			2020		2019
	(In thousands)							(In thousands)
Interest rate swap contracts	$	(52,857)	$	(25,583)	Cost of ATM operating revenues	$	(9,942)	$	458
Interest rate swap contracts	(210)		(381)		Interest expense, net	(43)		(113)
Total	$	(53,067)	$	(25,964)		$	(9,985)	$	345

As of June 30, 2020, the Company expects to reclassify 25.2 million of net derivative-related losses contained in the Accumulated comprehensive loss, net line within its Consolidated Balance Sheets into earnings during the next twelve months concurrent with the recording of the related vault cash rental expense amounts.


	Location and Amount of Loss (Gain) Recognized in Income on Cash Flow Hedging Relationships in the Three Months Ended
	June 30, 2020						June 30, 2019
	(In thousands)
	Cost of ATM Operating Revenues		Interest Expense, net		Cost of ATM Operating Revenues		Interest Expense, net
Total amount of expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded	$	151,084	$	8,809	$	208,081	$	6,871

Amount of loss (gain) reclassified from Accumulated other comprehensive loss into expense	7,323		—		(120)		57