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Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
(11) Derivative Financial Instruments 
Risk Management Objectives of Using Derivatives - Interest rate risk
The Company is exposed to interest rate risk associated with its vault cash rental obligations and its floating-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. The Company also uses interest rate swap or cap contracts to mitigate its exposure to floating interest rates on its floating-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 and on the interest payments on floating-rate debt recognized in the Interest expense, net line in the Consolidated Statements of Operations has been reduced.
Risk Management Objectives of Using Derivatives - Foreign Currency Exchange Rate Risk
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.
Derivative Accounting Policy
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. The Company does not currently hold any interest rate derivative instruments not designated as cash flow hedges.

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, anticipated Amended Credit Agreement borrowings or other floating-rate debt borrowings. Therefore, the amount of ineffectiveness associated with the Interest Rate Derivatives has historically been immaterial. If the Company concludes (i) that the obligations that have been hedged are no longer probable or (ii) 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 reported net of taxes in Accumulated other comprehensive loss, net within the Consolidated Balance Sheets. For additional information related to the Company’s interest rate swap and cap contracts and the associated fair value measurements, see Note 12. Fair Value Measurements.

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 expenses, net 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.

None of the Company’s existing derivative contracts contain credit-risk-related contingent features.

Summary of Outstanding Interest Rate Derivatives

The notional amounts, weighted average fixed rates, and remaining terms associated with the interest rate swap contracts and cap agreements that are currently in place in the U.S., Canada, the U.K, and Australia as of March 31, 2021 are as follows:
Remaining Term of Hedging Instrument
SegmentCurrency
Weighted Average Fixed Rate/Cap Rate (1)
Notional Value in Respective Currency
 (In millions)
Interest Rate Swap Contract - Vault Cash
April 1, 2021 – December 31, 2021North AmericaU.S. Dollar1.46 %$1,200 
January 1, 2022 – December 31, 2022North AmericaU.S. Dollar1.17 %$1,000 
January 1, 2023 – December 31, 2024North AmericaU.S. Dollar0.98 %$600 
April 1, 2021 – December 31, 2021North AmericaCanadian Dollar2.46 %$125 
April 1, 2021 – December 31, 2022Europe & AfricaPound Sterling0.94 %$500 
April 1, 2021 – December 31, 2021Australia & New ZealandAustralian Dollar0.71 %$40 
Interest Rate Cap Contracts - Vault Cash
April 1, 2021 – December 31, 2023North AmericaU.S. Dollar3.25 %$200 
Interest Rate Cap Contracts - Variable Debt
April 1, 2021 – December 31, 2025North AmericaU.S. Dollar1.00 %$250 
(1) Cap rate represents the maximum amount of interest to be paid each year as per terms of the cap. The cost of the cap related to vault cash is amortized through vault cash rental expense over the term of the cap while the cost of the cap related to floating-rate debt is amortized through interest expense over the term of the cap.
Effects of Interest Rate Derivatives on the Consolidated Balance Sheets and Consolidated Statements of Operations
The following tables depict the effects of the use of the Company’s Interest Rate Derivatives on the Consolidated Balance Sheets and Consolidated Statements of Operations:
Balance Sheet Data 
Asset (Liability) Derivative InstrumentsBalance Sheet LocationFair Value
March 31, 2021December 31, 2020
(In thousands) 
Derivatives designated as hedging instruments:
Interest rate swap and cap contractsPrepaid expenses, deferred costs, and other noncurrent assets$3,897 $— 
Interest rate swap and cap contractsCurrent portion of other long-term liabilities (22,211)(23,916)
Interest rate swap and cap contractsOther long-term liabilities (12,935)(26,994)
Total derivatives designated as hedging instruments, net $(31,249)$(50,910)
Total derivative instruments, net$(31,249)$(50,910)
Statements of Operations Data

 Three Months Ended
March 31,
Derivatives in Cash Flow Hedging RelationshipAmount of Gain (Loss) on Derivative Instruments Recognized in
Accumulated Other Comprehensive Loss, net		Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income Amount of Loss Reclassified from Accumulated Other Comprehensive Loss, net
into Income
 20212020 20212020
 (In thousands) (In thousands)
Interest rate swap and cap contracts $6,530 $(42,294)Cost of ATM operating revenues$(8,809)$(2,619)
Interest rate swap and cap contracts (368)(210)Interest expense, net(93)(43)
Total$6,162 $(42,504)$(8,902)$(2,662)

As of March 31, 2021, the Company expects to reclassify $22.2 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 and Term Loan interest expense amounts.

The following tables show the impact of the Company's cash flow hedge accounting relationships on the Consolidated Statement of Operations for the three months ended March 31, 2021 and 2020.


Location and Amount of Loss Recognized in Income on Cash Flow Hedging Relationships in the Three Months Ended
March 31, 2021March 31, 2020
(In thousands)
Cost of ATM Operating RevenuesInterest Expense, netCost of ATM Operating RevenuesInterest Expense, net
Total amount of expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded$150,803 $10,761 $193,630 $6,421 
Amount of loss reclassified from Accumulated other comprehensive loss, net into expense$8,809 $93 $2619 $43