The Brink's Company (NYSE:BCO) Q1 2022 Earnings Conference Call May 10, 2022 8:30 AM ET Company Participants Ed Cunningham – Vice President-Investor Relations and Corporate Communications Doug Pertz – Executive Chairman, President and Chief Executive Officer Mark Eubanks – President and Chief Executive Officer Ron Domanico – Chief Financial Officer Conference Call Participants Tobey Sommer – Truist Securities George Tong – Goldman Sachs Operator Hello, and welcome to The Brink's Company's First Quarter 202 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $1.00 per share BCO New York Stock Exchange FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ C ...

PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Brink's is a global leader in cash management, logistics, and payment solutions, driving profitable growth and digital innovation - The Brink's Company is a global leader in total cash management, route-based logistics, and payment solutions, including cash-in-transit, ATM services, cash management services, and international transportation of valuables[8](index=8&type=chunk) - The company manages its business across four segments: North America, Latin America, Europe, and Rest of World, which includes operations in the Middle East, Africa, and Asia[9](index=9&type=chunk) - Brink's has three long-term strategic objectives: Accelerate Profitable Growth (organic growth, high-value services, acquisitions), Deliver Operational Excellence (safety, security, productivity), and Introduce Digital Solutions (leveraging IT for new digital payment solutions like Brink's Complete and ATM managed services)[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) Revenue Contribution by Service Type (2021) | Service Type | % of Total Revenues (2021) | | :------------------ | :------------------------- | | Core Services | 50% | | High-Value Services | 45% | | Other Security Services | 5% | - The company completed several acquisitions, including PAI Midco, Inc. for approximately **$216 million** in April 2021, and the majority of G4S plc's cash management operations for an aggregate of **$826 million** by December 31, 2021, expanding its ATM and cash management services[43](index=43&type=chunk)[44](index=44&type=chunk) - Brink's recognized **$43.6 million** in net restructuring costs in 2021, primarily severance costs, with substantially all costs from 2021 plans addressing the COVID-19 pandemic. These actions are expected to reduce the workforce by **1,600-1,800 positions** and generate **$35-$40 million** in annualized cost savings[47](index=47&type=chunk)[155](index=155&type=chunk) [Overview](index=4&type=section&id=Overview) Brink's is a global leader in cash management, logistics, and payment solutions, operating globally across four primary segments - The Brink's Company is a global leader in total cash management, route-based logistics, and payment solutions, including cash-in-transit, ATM services, cash management services, and international transportation of valuables[8](index=8&type=chunk) - Customers include financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations worldwide[8](index=8&type=chunk) - The company operates in more than **100 countries**, with controlling ownership interests in **53 countries**, employing approximately **74,500 people**, and managing about **1,300 facilities** and **16,300 vehicles**[8](index=8&type=chunk) - Business is managed across four segments: North America (U.S. and Canada, including Brink's Global Services), Latin America, Europe (primarily non-BGS services), and Rest of World (Middle East, Africa, Asia, and BGS services in Europe/Latin America without ownership)[9](index=9&type=chunk) [Strategy](index=5&type=section&id=Strategy) Brink's updated its strategy to accelerate profitable growth, achieve operational excellence, and introduce digital solutions - Three long-term strategic objectives: Accelerate Profitable Growth (organic revenue, high-value services, acquisitions, customer experience), Deliver Operational Excellence (safety, security, productivity via Lean Management), and Introduce Digital Solutions (strengthening IT for new digital offerings)[11](index=11&type=chunk)[12](index=12&type=chunk) - The 2022-2024 strategic plan includes two main strategies: 'Strategy 1.0' focusing on organic growth and operational excellence in core cash logistics, and 'Strategy 2.0' capitalizing on technology for digital solutions (Brink's Complete for cash payments) and ATM managed services[12](index=12&type=chunk)[13](index=13&type=chunk) - The strategy is supported by proven growth and profitability, strong cash usage, positioning in the evolving payments landscape, and a winning culture[14](index=14&type=chunk) [Services](index=6&type=section&id=Services) Brink's offers Core, High-Value, and Other Security Services, with a growing emphasis on digital and ATM managed solutions - Core Services (**50% of 2021 revenues**) include Cash-in-transit (secure transportation of cash, securities, valuables) and Basic ATM services (cash replenishment, treasury management, maintenance for **131,500 ATMs** worldwide)[16](index=16&type=chunk)[17](index=17&type=chunk) - High-Value Services (**45% of 2021 revenues**) include Brink's Global Services (secure transport of high-value commodities), Cash management services (money processing, digital cash payment via Brink's Complete/BLUbeem, CompuSafe service with **47,400 devices**), Vaulting services, and ATM managed services (comprehensive ATM management, including ownership of devices for some customers)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - Other Security Services (**5% of 2021 revenues**) include Guarding (personnel for airports, offices, etc.) and Commercial security systems (design, installation, and monitoring of alarms, CCTV, access control)[24](index=24&type=chunk)[25](index=25&type=chunk) [Industry and Competition](index=7&type=section&id=Industry%20and%20Competition) Brink's competes in a highly competitive industry, leveraging brand, security, and global network over price - Brink's competes with large multinational (Loomis AB, Prosegur, Garda World Security Corporation), regional, and smaller companies globally[26](index=26&type=chunk) - Key competitive advantages include brand name recognition, reputation for high service and security, risk management and logistics expertise, global network, operational excellence, and high-quality insurance coverage and financial strength[26](index=26&type=chunk) - The company resists competing on price alone, emphasizing service levels, security expertise, and value-added solutions[26](index=26&type=chunk) [Seasonality](index=7&type=section&id=Seasonality) Revenues and earnings are typically higher in the second half of the year, especially the fourth quarter, due to holiday season activity - Revenues and earnings are generally higher in the second half of the year, especially in the fourth quarter, due to increased activity associated with the holiday season[27](index=27&type=chunk) [Insurance Coverage](index=7&type=section&id=Insurance%20Coverage) Reliable insurance coverage is crucial for Brink's to attract customers and manage business risks, with premiums influenced by market conditions - Reliable insurance coverage is vital for customer attraction, retention, and risk management[28](index=28&type=chunk) - Insurance covers losses from most causes, excluding war, nuclear risk, and other typical exclusions, with premiums fluctuating based on market conditions and the security loss experience of Brink's and the industry[28](index=28&type=chunk)[29](index=29&type=chunk) [Service Mark and Patents](index=8&type=section&id=Service%20Mark%20and%20Patents) The 'BRINKS' service mark is materially significant, while patents for safes and services provide advantages but are not critical to overall operations - BRINKS is a registered service mark in the U.S. and other countries, holding material significance to the business[30](index=30&type=chunk) - The company owns patents for safes and related devices/services, including CompuSafe, expiring between 2022 and 2039, which provide important advantages but are not critical for overall business existence[30](index=30&type=chunk) [Government Regulation](index=8&type=section&id=Government%20Regulation) Brink's operations are subject to various federal, state, and foreign regulations, including licensing and financial responsibility requirements - Business aspects are subject to regulation by federal, state, and foreign agencies concerning commercial lending, operational safety, equipment, financial responsibility, import/export, and firearm regulations[31](index=31&type=chunk) - Compliance with licensing, permits, and registration requirements is necessary across various jurisdictions[31](index=31&type=chunk) - Brink's Capital LLC is federally registered as a Money Services Business to offer money transmission and payment services[31](index=31&type=chunk) [Human Capital Management](index=8&type=section&id=Human%20Capital%20Management) Brink's fosters a culture of safety, integrity, and diversity, managing a global workforce amidst labor challenges and D&I expansion - Company culture is underpinned by values: Safety, Integrity, Engagement, Continuous Improvement, Customer Focus, and Diversity and Inclusion[32](index=32&type=chunk) - As of December 31, 2021, Brink's had approximately **74,500 employees** (**72,200 full-time**, **2,300 part-time**), with about **86%** (**64,000**) outside the U.S[8](index=8&type=chunk)[33](index=33&type=chunk) - The company experienced labor shortages and inflationary wage pressures in the U.S. in 2021, responding with enhanced workforce planning, updated job descriptions, and efforts to improve brand attractiveness and reduce turnover[34](index=34&type=chunk) - Employee safety and wellness are paramount, with 2021 priorities including mitigating COVID-19 impacts through PPE, enhanced cleaning, and vaccine incentives[36](index=36&type=chunk) - Diversity and Inclusion (D&I) initiatives are expanding globally, with a D&I leader appointed in February 2021, a U.S. D&I Council established, and plans to develop global gender diversity goals for leadership in 2022. Employee Resource Groups (ERGs) have also expanded[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - Approximately **51%** of employees outside North America are represented by trade unions or collective bargaining agreements. In North America, Canada has unionized employees, while the U.S. does not[40](index=40&type=chunk)[41](index=41&type=chunk) [Business Divestitures](index=9&type=section&id=Business%20Divestitures) Brink's divested a French security services company in Q1 2020 and exited a Brazilian prepaid mobile phone business in Q2 2019 - Sold **100%** ownership in a French security services company in Q1 2020[42](index=42&type=chunk) - Exited a top-up prepaid mobile phone business in Brazil in Q2 2019[42](index=42&type=chunk) - These divestitures did not qualify as discontinued operations; their results are included in continuing operations[42](index=42&type=chunk) [Business Acquisitions](index=10&type=section&id=Business%20Acquisitions) Brink's completed strategic acquisitions, including PAI Midco, Inc. for **$216 million** and the majority of G4S's cash management operations for **$826 million** - Acquired **100%** of PAI Midco, Inc., the largest privately-held ATM services provider in the U.S., for approximately **$216 million** on April 1, 2021. PAI generated about **$94 million** in revenues in 2020[43](index=43&type=chunk) - Completed the acquisition of the majority of G4S's cash management operations in multiple phases, with an aggregate purchase consideration of **$826 million** by December 31, 2021. These businesses generated approximately **$800 million** in revenues in 2019[44](index=44&type=chunk) - In 2019, acquired Rodoban (CIT, money processing, ATM services in Brazil) for **$134 million**, Balance Innovations (software for retail cash management) for **$49 million**, COMEF (bank correspondent services in Brazil), and TVS (CIT, money processing in Colombia)[45](index=45&type=chunk) [Reorganization and Restructuring](index=10&type=section&id=Reorganization%20and%20Restructuring) Brink's recognized **$43.6 million** in net restructuring costs in 2021, expecting **$35-$40 million** in annualized cost savings from workforce reductions Net Restructuring Costs (in millions) | Year | Net Costs (in millions) | | :--- | :---------------------- | | 2019 | $28.8 | | 2020 | $66.6 | | 2021 | $43.6 | - Substantially all 2021 restructuring costs resulted from management initiatives to address the COVID-19 pandemic[47](index=47&type=chunk) - Current restructuring actions are expected to reduce the workforce by **1,600 to 1,800 positions** and generate annualized cost savings of **$35 million to $40 million**, with an additional **$1 million to $3 million** in future costs[155](index=155&type=chunk) [Available Information and Corporate Governance Documents](index=11&type=section&id=Available%20Information%20and%20Corporate%20Governance%20Documents) Brink's provides public access to its SEC filings and corporate governance documents on its website - Annual, quarterly, and current reports (Form 10-K, 10-Q, 8-K) are available free on www.brinks.com and the SEC's website[49](index=49&type=chunk)[50](index=50&type=chunk) - Corporate Governance Guidelines, Code of Ethics, and Board committee charters are also available on the company's website[49](index=49&type=chunk) [Item 1A. Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) Brink's faces diverse risks including strategic execution, intense competition, decreased cash usage, operational challenges, financial obligations, and cybersecurity threats - Strategic risks include potential failure to achieve profitable growth, operational excellence, or successful digital solution introduction, which could adversely affect results[52](index=52&type=chunk) - Competitive risks involve significant competition and pricing pressures, with failure to differentiate on service quality potentially leading to lost business or inability to offset cost increases[53](index=53&type=chunk) - Decreased use of cash could negatively impact the business, despite efforts to develop new services to streamline cash processing costs[54](index=54&type=chunk) - Acquisition risks include difficulties in integration, failure to realize expected benefits, increased acquisition prices due to competition, and potential dilution to shareholders from financing[55](index=55&type=chunk) - The ongoing COVID-19 pandemic continues to create volatility, uncertainty, and economic disruption, impacting customer volumes, operating procedures, and costs, with long-term effects remaining uncertain[56](index=56&type=chunk)[57](index=57&type=chunk)[59](index=59&type=chunk) - Operational risks include political, economic, and regulatory challenges in over **100 foreign countries**, labor shortages and increased labor costs, and the inability to achieve efficiency and cost control initiatives[63](index=63&type=chunk)[66](index=66&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) - Financial risks involve significant retirement obligations (pension, retiree medical), potential non-realization of U.S. deferred tax assets, changes in effective income tax rates, future restructuring charges, and inability to access capital or increased cost of capital[71](index=71&type=chunk)[72](index=72&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - Information technology risks include business disruptions, cybersecurity breaches (hacking, ransomware, insider threats), and regulatory violations related to data privacy (e.g., GDPR)[82](index=82&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk) - Risks related to the company's securities include the share repurchase program not enhancing long-term shareholder value or increasing stock price volatility, and general risks like activist shareholders and negative publicity impacting reputation and profitability[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[90](index=90&type=chunk) [Item 1B. Unresolved Staff Comments](index=21&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reported no unresolved staff comments from the SEC - None[95](index=95&type=chunk) [Item 2. Properties](index=22&type=section&id=Item%202.%20Properties) Brink's maintains a global network of **1,279 facilities** and **16,315 vehicles** to support its cash management and logistics operations - Branch facilities typically include office space, a secure vault for valuables, and a garage for armored vehicles, with many also offering vehicle repair and maintenance[96](index=96&type=chunk) Facilities and Vehicles by Segment (as of December 31, 2021) | Segments | Leased Facilities | Owned Facilities | Total Facilities | Leased Vehicles | Owned Vehicles | Total Vehicles | | :-------------- | :---------------- | :--------------- | :--------------- | :-------------- | :------------- | :------------- | | North America | 245 | 39 | 284 | 2,668 | 1,193 | 3,861 | | Latin America | 330 | 92 | 422 | 710 | 4,723 | 5,433 | | Europe | 151 | 34 | 185 | 2,272 | 1,955 | 4,227 | | Rest of World | 368 | 12 | 380 | 749 | 2,045 | 2,794 | | Corporate Items | 8 | — | 8 | — | — | — | | Total | 1,102 | 177 | 1,279 | 6,399 | 9,916 | 16,315 | [Item 3. Legal Proceedings](index=22&type=section&id=Item%203.%20Legal%20Proceedings) For a discussion of legal proceedings, the report refers to Note 23 to the consolidated financial statements - Discussion of legal proceedings is incorporated by reference to Note 23 of the consolidated financial statements[98](index=98&type=chunk) [Item 4. Mine Safety Disclosures](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to The Brink's Company - Not applicable[99](index=99&type=chunk) [Information about Our Executive Officers](index=23&type=section&id=Information%20about%20Our%20Executive%20Officers) This section lists Brink's executive officers as of February 25, 2022, including their ages and current roles Executive Officers (as of February 25, 2022) | Name | Age | Positions and Offices Held | Held Since | | :------------------- | :-- | :------------------------------------------------------------ | :--------- | | Douglas A. Pertz | 67 | Director, President and Chief Executive Officer | 2016 | | Richard M. Eubanks | 49 | Executive Vice President, Chief Operating Officer | 2021 | | Ronald J. Domanico | 63 | Executive Vice President, Chief Financial Officer | 2016 | | Michael F. Beech | 60 | Executive Vice President and President LATAM and Global Security | 2014 | | Rohan Pal | 56 | Executive Vice President, Chief Information Officer and Chief Digital Officer | 2019 | | Dominik Bossart | 47 | Executive Vice President and President MEA, Asia and Brink's Global | 2019 | | Simon J. Davis | 57 | Executive Vice President and Chief Human Resources Officer | 2019 | | Lindsay K. Blackwood | 45 | Executive Vice President, General Counsel and Corporate Secretary | 2021 | | James K. Parks | 53 | Executive Vice President and President of Europe | 2020 | - Executive and other officers are elected annually and serve at the pleasure of the Board, with no family relationships among them[100](index=100&type=chunk)[101](index=101&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=24&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Brink's common stock trades on the NYSE under 'BCO', with a new **$250 million** share repurchase program authorized in October 2021 - Brink's common stock trades on the New York Stock Exchange under the symbol 'BCO'. As of February 22, 2022, there were **1,165 shareholders** of record[109](index=109&type=chunk) - On October 27, 2021, the Board authorized a new **$250 million** share repurchase program, expiring December 31, 2023, replacing the previous **$250 million** program which was fully utilized[110](index=110&type=chunk)[114](index=114&type=chunk) Share Repurchase Program Activity (2020-2021) | Program | Upfront Payment | Shares Received | Average Repurchase Price | | :------------- | :-------------- | :-------------- | :----------------------- | | August 2020 | $50,000,000 | 849,978 | $58.83 | | September 2020 | — | 246,676 | — | | Total 2020 | $50,000,000 | 1,096,654 | $45.59 | | August 2021 | $50,000,000 | 524,315 | $95.36 | | September 2021 | — | 131,384 | — | | Total Q3 2021 | $50,000,000 | 655,699 | $76.25 | | November 2021 | $150,000,000 | 1,742,160 | $86.10 | | Total | $250,000,000 | 3,494,513 | $71.54 | Five-Year Cumulative Total Return (Indexed to $100 at 12/31/2016) | Index/Company | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | | :------------------- | :----- | :----- | :----- | :----- | :----- | :----- | | The Brink's Company | $100.00 | $192.47 | $159.40 | $225.19 | $181.10 | $166.60 | | S&P MidCap 400 Index | $100.00 | $116.24 | $103.36 | $130.44 | $148.26 | $184.97 | | New Peer Group | $100.00 | $122.01 | $122.76 | $170.16 | $189.67 | $251.34 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Brink's financial condition and results for the three-year period ended December 31, 2021, covering operations, liquidity, and critical accounting policies - Non-GAAP financial measures are provided to report operating profit, income from continuing operations, and EPS without certain income and expense items that do not reflect the regular earnings of operations, aiding investors in evaluating core performance[131](index=131&type=chunk) - Organic growth represents the change in revenues or operating profit excluding the effect of acquisitions/dispositions for one year and changes in currency exchange rates[132](index=132&type=chunk) Consolidated Financial Highlights (in millions, except EPS) | Metric | 2021 | 2020 | 2019 | % Change 2021 vs 2020 | | :-------------------------------------- | :---------- | :---------- | :---------- | :-------------------- | | **GAAP** | | | | | | Revenues | $4,200.2 | $3,690.9 | $3,683.2 | 14% | | Operating profit | $354.7 | $213.5 | $236.8 | 66% | | Income from continuing operations | $103.1 | $16.8 | $28.3 | Fav | | Diluted EPS from continuing operations | $2.06 | $0.33 | $0.55 | Fav | | **Non-GAAP** | | | | | | Non-GAAP revenues | $4,200.2 | $3,690.9 | $3,679.7 | 14% | | Non-GAAP operating profit | $470.5 | $381.3 | $391.6 | 23% | | Non-GAAP income from continuing operations | $237.9 | $190.8 | $199.0 | 25% | | Non-GAAP diluted EPS from continuing operations | $4.75 | $3.76 | $3.89 | 26% | - Consolidated revenues increased by **$509.3 million** (**14%**) in 2021, primarily due to acquisitions (**$315.4 million**), organic increases across all segments (**$190.6 million**), and favorable currency exchange rates (**$3.3 million**). Organic revenue growth was **5%**, driven by volume recovery post-COVID-19 and price increases[134](index=134&type=chunk)[141](index=141&type=chunk) - Consolidated operating profit increased by **$141.2 million** (**66%**) on a GAAP basis, and **$89.2 million** (**23%**) on a Non-GAAP basis, mainly from organic increases in all segments, favorable impact of acquisitions, and lower charges related to internal loss and restructuring[135](index=135&type=chunk)[138](index=138&type=chunk) [OPERATIONS](index=28&type=section&id=OPERATIONS) Brink's provides secure transportation and logistics for cash and valuables globally, leveraging brand recognition and risk management expertise - Brink's offers secure transportation and route-based logistics management services for cash and valuables worldwide, including cash-in-transit, ATM services, global services, cash management, vaulting, payment services, commercial security systems, and guarding services[126](index=126&type=chunk) - Competitive advantages include brand name recognition, reputation for high service and security, risk management and logistics expertise, global network, operational excellence, and high-quality insurance coverage and financial strength[127](index=127&type=chunk) - The company focuses on service quality, brand strengthening, risk management, and efficient resource use to maximize business flow through its infrastructure[127](index=127&type=chunk)[128](index=128&type=chunk) - Operating results can vary due to economic activity, customer volume, and costs for scaling operations (employees, branches). Revenues and operating profit are generally higher in the second half of the year, particularly the fourth quarter, due to the holiday season[129](index=129&type=chunk) [RESULTS OF OPERATIONS](index=29&type=section&id=RESULTS%20OF%20OPERATIONS) Brink's 2021 consolidated results show significant revenue and operating profit growth, driven by acquisitions, organic recovery, and price increases [Analysis of Results](index=29&type=section&id=Analysis%20of%20Results) In 2021, Brink's GAAP revenues increased **14%** to **$4,200.2 million** and operating profit rose **66%** to **$354.7 million**, driven by acquisitions and organic growth Consolidated Financial Performance (2021 vs 2020) | Metric (in millions) | 2021 | 2020 | Change ($) | Change (%) | | :------------------- | :---------- | :---------- | :---------- | :--------- | | **GAAP** | | | | | | Revenues | $4,200.2 | $3,690.9 | $509.3 | 14% | | Cost of revenues | $3,235.8 | $2,877.3 | $358.5 | 12% | | SG&A expenses | $629.7 | $584.5 | $45.2 | 8% | | Operating profit | $354.7 | $213.5 | $141.2 | 66% | | Income from cont. ops | $103.1 | $16.8 | $86.3 | Fav | | Diluted EPS (GAAP) | $2.06 | $0.33 | $1.73 | Fav | | **Non-GAAP** | | | | | | Non-GAAP revenues | $4,200.2 | $3,690.9 | $509.3 | 14% | | Non-GAAP operating profit | $470.5 | $381.3 | $89.2 | 23% | | Non-GAAP income from cont. ops | $237.9 | $190.8 | $47.1 | 25% | | Non-GAAP diluted EPS | $4.75 | $3.76 | $0.99 | 26% | - Revenue increase driven by acquisitions (**$315.4 million**), organic growth in Latin America (**$102.2 million**), North America (**$64.4 million**), Europe (**$15.4 million**), and Rest of World (**$8.6 million**), and favorable currency exchange rates (**$3.3 million**). Organic revenue increased **5%** due to volume recovery and price increases[134](index=134&type=chunk) - Operating profit increase primarily due to organic growth across segments, income/lower charges from internal loss (**$28.0 million**), lower reorganization/restructuring charges (**$23.0 million**), and lower acquisition/disposition costs (**$10.6 million**), partially offset by higher corporate expenses (**$53.0 million**) and a **$9.5 million** estimated loss for a Chile antitrust matter[135](index=135&type=chunk)[136](index=136&type=chunk) [Analysis of Segment Results: 2021 versus 2020](index=31&type=section&id=Analysis%20of%20Segment%20Results%3A%202021%20versus%202020) All segments reported revenue and operating profit growth in 2021, driven by acquisitions, organic growth, and cost savings Segment Revenues and Operating Profit (2021 vs 2020, in millions) | Segment | 2020 Revenues | 2021 Revenues | % Change | Organic % Change | 2020 Operating Profit | 2021 Operating Profit | % Change | Organic % Change | | :------------ | :------------ | :------------ | :------- | :--------------- | :-------------------- | :-------------------- | :------- | :--------------- | | North America | $1,261.4 | $1,407.1 | 12% | 5% | $91.7 | $148.4 | 62% | 49% | | Latin America | $1,071.9 | $1,126.0 | 5% | 10% | $233.6 | $257.3 | 10% | 20% | | Europe | $753.8 | $917.3 | 22% | 2% | $51.2 | $89.8 | 75% | 55% | | Rest of World | $603.8 | $749.8 | 24% | 1% | $117.1 | $131.5 | 12% | 2% | | Total Segments| $3,690.9 | $4,200.2 | 14% | 5% | $493.6 | $627.0 | 27% | 25% | [Income and Expense Not Allocated to Segments](index=33&type=section&id=Income%20and%20Expense%20Not%20Allocated%20to%20Segments) Corporate expenses increased by **$44.2 million** in 2021, while other unallocated items resulted in a smaller net loss Corporate Expenses (in millions) | Metric | 2021 | 2020 | 2019 | % Change 2021 vs 2020 | | :-------------------------------------- | :-------- | :-------- | :-------- | :-------------------- | | General, administrative and other expenses | $(141.7) | $(116.3) | $(123.2) | 22% | | Foreign currency transaction gains (losses) | $2.7 | $(6.5) | $(4.8) | Fav | | Reconciliation of segment policies to GAAP | $(17.5) | $10.5 | $0.3 | Unfav | | Total Corporate items | $(156.5) | $(112.3) | $(127.7) | 39% | - Corporate expenses increased by **$44.2 million** in 2021, driven by higher bad debt expense (**$28.5 million**), new service offering development (**$11.2 million**), employee compensation (**$9.5 million**), and legal fees (**$4.0 million**), partially offset by lower foreign currency transaction losses (**$9.2 million**)[150](index=150&type=chunk) Other Items Not Allocated to Segments (Operating Profit Impact, in millions) | Item | 2021 | 2020 | 2019 | % Change 2021 vs 2020 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------------------- | | Reorganization and Restructuring | $(43.6) | $(66.6) | $(28.8) | (35)% | | Acquisitions and dispositions | $(71.9) | $(83.1) | $(88.5) | (13)% | | Argentina highly inflationary impact | $(11.9) | $(10.7) | $(14.5) | 11% | | Chile antitrust matter | $(9.5) | — | — | Unfav | | Internal loss | $21.1 | $(6.9) | $(20.9) | Fav | | Reporting compliance | — | $(0.5) | $(2.1) | (100)% | | Total Operating profit impact | $(115.8) | $(167.8) | $(154.8) | (31)% | - The impact of other items not allocated to segments was a smaller loss of **$115.8 million** in 2021 (vs. **$167.8 million** in 2020), primarily due to lower restructuring expenses, reduced net charges from the internal loss matter, and decreased acquisition/disposition costs, partially offset by the Chile antitrust matter charge[153](index=153&type=chunk) [Reorganization and Restructuring](index=35&type=section&id=Reorganization%20and%20Restructuring) Brink's recognized **$43.6 million** in net restructuring costs in 2021, primarily severance, from initiatives addressing the COVID-19 pandemic Net Reorganization and Restructuring Costs (in millions) | Year | Total Net Costs | | :--- | :-------------- | | 2019 | $28.8 | | 2020 | $66.6 | | 2021 | $43.6 | - Substantially all 2021 restructuring costs resulted from management initiatives to address the COVID-19 pandemic[155](index=155&type=chunk) - Current restructuring actions are expected to reduce the workforce by **1,600 to 1,800 positions** and result in annualized cost savings of **$35 million to $40 million**, with an additional **$1 million to $3 million** in future costs[155](index=155&type=chunk) - Acquisition and disposition items, such as intangible asset amortization, integration, transaction, and restructuring costs, are excluded from non-GAAP results as they are not considered part of ongoing business activities[156](index=156&type=chunk) [Other Operating Income and Expense](index=37&type=section&id=Other%20Operating%20Income%20and%20Expense) Brink's reported **$20.0 million** in other operating income in 2021, a significant improvement driven by insurance recoveries and litigation gains Other Operating Income (Expense) (in millions) | Item | 2021 | 2020 | 2019 | % Change 2021 vs 2020 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------------------- | | Foreign currency transaction losses | $(30.5) | $(11.2) | $(22.9) | Unfav | | Derivative instrument gains (losses) | $24.2 | $(3.0) | $6.9 | Fav | | Gains on sale of property and other assets | — | $0.9 | $5.8 | (100)% | | Impairment losses | $(9.5) | $(11.6) | $(7.7) | (18)% | | Share in earnings of equity method affiliates | $1.1 | $0.8 | $0.9 | 38% | | Royalty income | $5.6 | $4.8 | $5.1 | 17% | | Insurance recoveries - Internal Loss | $18.8 | — | — | 100% | | Gains related to litigation | $4.4 | — | — | 100% | | Indemnity for forced relocation | $1.7 | — | — | 100% | | Other | $4.2 | $3.7 | $2.5 | 14% | | Total Other operating income (expense) | $20.0 | $(15.6) | $(9.4) | Fav | - The shift from expense to income was primarily due to **$18.8 million** in insurance recoveries related to the internal loss in U.S. global services operations, gains from litigation in Romania, and lower foreign currency items losses compared to 2020[167](index=167&type=chunk) [Nonoperating Income and Expense](index=38&type=section&id=Nonoperating%20Income%20and%20Expense) Interest expense increased by **16%** to **$112.2 million** in 2021, while other nonoperating income improved significantly due to higher interest income and equity gains Interest Expense (in millions) | Year | Interest Expense | | :--- | :--------------- | | 2019 | $90.6 | | 2020 | $96.5 | | 2021 | $112.2 | - Interest expense increased by **16%** in 2021 primarily due to higher borrowing levels associated with business acquisitions[169](index=169&type=chunk) Interest and Other Nonoperating Income (Expense) (in millions) | Item | 2021 | 2020 | 2019 | | :------------------------------------ | :-------- | :-------- | :-------- | | Interest income | $12.1 | $5.6 | $5.6 | | Gain (loss) on equity securities | $16.0 | $10.6 | $(2.9) | | Foreign currency transaction gains (losses) | $0.4 | $(3.6) | — | | Derivative instrument losses | — | $(7.0) | — | | Retirement benefit cost other than service cost | $(38.7) | $(37.9) | $(52.7) | | G4S indemnification asset adjustment | $2.7 | — | — | | Acquisition-related gains (losses) | $0.4 | — | — | | Penalties and interest on non-income taxes | $(1.8) | — | — | | Interest on Colombia tax claim | — | — | $(1.1) | | Non-income taxes on intercompany billings | $(3.9) | $(4.6) | $(4.2) | | Venezuela operations | — | — | $(0.9) | | Gain on lease termination | — | — | $5.2 | | Gain on a disposition of a subsidiary | — | $4.1 | — | | Interest on non-income tax credits | $1.2 | — | — | | Earn-out liability adjustment | $1.3 | — | — | | Gains related to litigation | $1.7 | — | — | | Other | $1.6 | $(4.9) | $(1.7) | | Total | $(7.0) | $(37.7) | $(52.7) | - Interest and other nonoperating income (expense) improved by **$30.7 million** in 2021 compared to 2020, primarily due to higher interest income and a gain on equity securities (fully realized from MoneyGram International, Inc. investment sale)[137](index=137&type=chunk)[171](index=171&type=chunk) [Income Taxes](index=39&type=section&id=Income%20Taxes) Brink's effective income tax rate was **51.1%** in 2021, significantly higher than the U.S. federal statutory rate, influenced by geographical earnings mix and valuation allowances GAAP Summary Rate Reconciliation (in percentages) | Item | 2021 | 2020 | 2019 | | :------------------------------------ | :------ | :------ | :------ | | U.S. federal tax rate | 21.0% | 21.0% | 21.0% | | Foreign rate differential | 7.6% | 12.9% | 17.3% | | Taxes on cross border income, net of credits | 4.6% | 11.0% | 9.3% | | Adjustments to valuation allowances | 6.7% | 6.6% | 16.0% | | Foreign income taxes | 6.1% | 10.6% | 13.7% | | French business tax | 0.7% | 3.7% | 3.0% | | State income taxes, net | 0.9% | (1.6)% | (2.2)% | | Share-based compensation | 0.2% | (3.1)% | (4.8)% | | Acquisition costs | 0.5% | 6.0% | — | | Other | 2.8% | 4.3% | (0.2)% | | Income tax rate on continuing operations | 51.1% | 71.4% | 65.2% | Non-GAAP Summary Rate Reconciliation (in percentages) | Item | 2021 | 2020 | 2019 | | :------------------------------------ | :------ | :------ | :------ | | U.S. federal tax rate | 21.0% | 21.0% | 21.0% | | Foreign rate differential | 6.1% | 5.2% | 7.4% | | Adjustments to valuation allowances | 1.4% | (0.2)% | 4.0% | | French business tax | 0.4% | 1.0% | 1.0% | | Other | 4.7% | 4.8% | (2.0)% | | Income tax rate on Non-GAAP continuing operations | 33.6% | 31.8% | 31.4% | - The effective tax rate varies due to geographical mix of earnings, valuation allowances, changes in tax laws, and other factors[174](index=174&type=chunk) - Valuation allowances for deferred tax assets are established when realization is not more likely than not, based on historical earnings and future taxable income projections[175](index=175&type=chunk) [Noncontrolling Interests](index=41&type=section&id=Noncontrolling%20Interests) Net income attributable to noncontrolling interests increased to **$12.1 million** in 2021, primarily due to G4S acquisitions and improved subsidiary operating results Net Income Attributable to Noncontrolling Interests (in millions) | Year | Net Income Attributable to Noncontrolling Interests | | :--- | :-------------------------------------------------- | | 2019 | $4.2 | | 2020 | $5.9 | | 2021 | $12.1 | - The increase in 2021 is primarily due to the G4S acquisitions that closed in the first quarter of 2021 and higher operating results from some subsidiaries[179](index=179&type=chunk) [Non-GAAP Results Reconciled to GAAP](index=42&type=section&id=Non-GAAP%20Results%20Reconciled%20to%20GAAP) Brink's provides non-GAAP financial measures to offer a supplemental comparison of core operating results by excluding certain non-recurring items - Non-GAAP results exclude items not reflective of ordinary earnings, such as retirement plans, reorganization and restructuring, acquisitions and dispositions, Argentina highly inflationary impact, Chile antitrust matter, internal loss, and reporting compliance costs[181](index=181&type=chunk)[184](index=184&type=chunk)[186](index=186&type=chunk) - These measures are intended to provide investors with a supplemental comparison of operating results and trends, and are used by management to evaluate performance and in incentive compensation plans[182](index=182&type=chunk) Non-GAAP Reconciliation to GAAP (Income from Continuing Operations Attributable to Brink's, in millions, except EPS) | Item | 2021 | 2020 | 2019 | | :------------------------------------ | :---------- | :---------- | :---------- | | **GAAP Income (loss) from continuing operations attributable to Brink's** | **$103.1** | **$16.8** | **$28.3** | | Retirement plans | $22.1 | $25.9 | $36.2 | | Venezuela operations | — | — | $0.9 | | Reorganization and Restructuring | $31.4 | $51.0 | $21.7 | | Acquisitions and dispositions | $65.4 | $79.4 | $88.4 | | Tax on accelerated income | — | — | $(7.3) | | Argentina highly inflationary impact | $13.4 | $11.9 | $15.9 | | Chile antitrust matter | $9.5 | — | — | | Internal loss | $(19.8) | $5.3 | $16.9 | | Reporting compliance | — | $0.5 | $2.0 | | Deferred tax valuation allowance | $12.8 | — | — | | Gain on lease termination | — | — | $(4.0) | | **Non-GAAP Income from continuing operations attributable to Brink's** | **$237.9** | **$190.8** | **$199.0** | | **GAAP Diluted EPS** | **$2.06** | **$0.33** | **$0.55** | | Non-GAAP Diluted EPS | **$4.75** | **$3.76** | **$3.89** | [Foreign Operations](index=45&type=section&id=Foreign%20Operations) Brink's global operations expose it to political, economic, and currency risks, with Argentina remaining highly inflationary and hedging strategies in place - Brink's serves customers in over **100 countries**, with **53 subsidiaries**, exposing it to risks like political instability, currency restrictions, and nationalization[190](index=190&type=chunk) - The strengthening U.S. dollar in 2021 reduced reported dollar revenues and operating profit, a trend that may continue in 2022[191](index=191&type=chunk) - Argentina's economy remains highly inflationary, resulting in **$9.0 million** in pretax remeasurement losses in 2021. Currency controls in Argentina require central bank approval for many transactions, including dividend repatriation[192](index=192&type=chunk)[193](index=193&type=chunk)[300](index=300&type=chunk)[302](index=302&type=chunk) - The company uses short-term foreign currency forward and swap contracts (notional value **$614 million** at Dec 31, 2021) to hedge transactional risks, with changes in fair value recorded immediately in earnings[195](index=195&type=chunk) - Long-term cross-currency swaps are used to hedge Brazilian real exposure (cash flow hedge) and euro functional currencies (net investment hedges), with fair value changes recorded in accumulated other comprehensive income (loss)[196](index=196&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=47&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Brink's finances operations through cash and debt, managing substantial retirement obligations and contingent legal matters [Overview](index=47&type=section&id=Overview) Brink's finances operations through cash and borrowings, with **$952 million** for acquisitions and **$250 million** for share repurchases over three years - Over the last three years, cash was used for acquisitions (**$952 million**), infrastructure investments (**$451 million**), share repurchases (**$250 million**), and dividends (**$97 million**)[204](index=204&type=chunk) - Cash flows from operating activities increased by **$160.3 million** in 2021, primarily due to higher operating profit, working capital changes, and lower G4S intercompany payments[204](index=204&type=chunk) - Cash used for investing activities decreased by **$110.7 million** in 2021 due to lower payments for business acquisitions in 2020[204](index=204&type=chunk) - Cash decreased by **$50.8 million** in 2021 due to the strengthening of the U.S. dollar, primarily against the euro[204](index=204&type=chunk) [Operating Activities](index=47&type=section&id=Operating%20Activities) GAAP operating cash flows increased by **$160.3 million** to **$478.0 million** in 2021, driven by higher operating profit and working capital changes Cash Flows from Operating Activities (in millions) | Metric | 2021 | 2020 | 2019 | $ Change 2021 vs 2020 | | :-------------------------------------- | :-------- | :-------- | :-------- | :-------------------- | | Operating activities - GAAP | $478.0 | $317.7 | $368.6 | $160.3 | | (Increase) decrease in restricted cash held for customers | $(60.2) | $(116.3) | $(23.7) | $56.1 | | (Increase) decrease in certain customer obligations | $(15.7) | $6.5 | $(11.4) | $(22.2) | | G4S intercompany payments | $2.6 | $111.1 | — | $(108.5) | | Operating activities - non-GAAP | $404.7 | $319.0 | $333.5 | $85.7 | - GAAP operating cash flows increased by **$160.3 million** in 2021 due to higher operating profit, working capital changes, lower G4S intercompany payments, and changes in customer obligations, partially offset by a **$56.1 million** decrease in restricted cash held for customers and higher interest payments[207](index=207&type=chunk) - Non-GAAP cash flows from operating activities increased by **$85.7 million** in 2021, primarily due to higher operating profit and working capital changes, partially offset by higher interest payments[208](index=208&type=chunk) [Investing Activities](index=48&type=section&id=Investing%20Activities) Cash used in investing activities decreased by **$110.7 million** in 2021 to **$454.7 million**, mainly due to lower G4S acquisition payments Cash Flows from Investing Activities (in millions) | Item | 2021 | 2020 | 2019 | $ Change 2021 vs 2020 | | :------------------------------------ | :---------- | :---------- | :---------- | :-------------------- | | Capital expenditures | $(167.9) | $(118.5) | $(164.8) | $(49.4) | | Acquisitions, net of cash acquired | $(313.2) | $(439.7) | $(183.9) | $126.5 | | Dispositions, net of cash disposed | — | $(2.6) | $11.2 | $2.6 | | Marketable securities: Purchases | $(15.6) | $(2.9) | $(11.8) | $(12.7) | | Marketable securities: Sales | $35.1 | $2.0 | $1.3 | $33.1 | | Proceeds from sale of property, equipment and investments | $7.7 | $5.3 | $10.3 | $2.4 | | Redemption of cash-surrender value of life insurance policies | — | — | $7.8 | — | | Other | $(0.8) | $(9.0) | $(3.1) | $8.2 | | Total Investing activities | $(454.7) | $(565.4) | $(333.0) | $110.7 | - Cash used by investing activities decreased by **$110.7 million** in 2021, primarily due to decreased payments related to the G4S acquisition in 2021 compared to 2020, offset by increased payments for the PAI acquisition[210](index=210&type=chunk) Capital Expenditures and Total Property and Equipment Acquired (in millions) | Item | 2021 | 2020 | 2019 | $ Change 2021 vs 2020 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------------------- | | Capital expenditures - GAAP and non-GAAP | $167.9 | $118.5 | $164.8 | $49.4 | | Financing leases - GAAP and non-GAAP | $85.9 | $31.4 | $59.7 | $54.5 | | Total property and equipment acquired | $253.8 | $149.9 | $224.5 | $103.9 | - Capital expenditures in 2021 were **$49.4 million** higher than 2020, and total property and equipment acquired was **$103.9 million** higher, mainly due to G4S acquisition impacts, investments in cash devices, and lower spending in 2020 due to COVID-19[213](index=213&type=chunk) [Financing Activities](index=51&type=section&id=Financing%20Activities) Cash flows from financing activities decreased by **$512.4 million** in 2021 to **$171.3 million**, driven by reduced net borrowings and increased share repurchases Cash Flows from Financing Activities (in millions) | Item | 2021 | 2020 | 2019 | $ Change 2021 vs 2020 | | :------------------------------------ | :---------- | :---------- | :---------- | :-------------------- | | Borrowings (repayments) | $411.4 | $798.6 | $31.3 | $(387.2) | | Debt financing costs | $(0.8) | $(13.2) | $(4.0) | $12.4 | | Repurchase shares of Brink's common stock | $(200.0) | $(50.0) | — | $(150.0) | | Dividends to Shareholders of Brink's | $(37.2) | $(30.1) | $(29.9) | $(7.1) | | Dividends to Noncontrolling interests | $(5.1) | $(16.8) | $(2.3) | $11.7 | | Acquisition-related financing activities | $2.2 | $2.4 | $(20.3) | $(0.2) | | Proceeds from exercise of stock options | $2.3 | — | — | $2.3 | | Tax withholdings associated with share-based compensation | $(5.5) | $(10.3) | $(8.9) | $4.8 | | Cross currency swap contract | $4.0 | $3.1 | $(3.9) | $0.9 | | Total Financing activities | $171.3 | $683.7 | $(38.0) | $(512.4) | - Cash flows from financing activities decreased by **$512.4 million** in 2021, primarily due to a decrease in net borrowings and a **$150 million** increase in cash used for common stock repurchases[216](index=216&type=chunk) - Dividends paid to Brink's shareholders were **$0.20 per share** in each of the last three quarters of 2021, up from **$0.15 per share** in prior periods[217](index=217&type=chunk) [Effect of Exchange Rate Changes on Cash and Cash Equivalents](index=51&type=section&id=Effect%20of%20Exchange%20Rate%20Changes%20on%20Cash%20and%20Cash%20Equivalents) Changes in currency exchange rates decreased cash and cash equivalents by **$50.8 million** in 2021, primarily due to the strengthening U.S. dollar - Changes in currency exchange rates decreased cash and cash equivalents by **$50.8 million** in 2021, compared to an increase of **$37.9 million** in 2020[218](index=218&type=chunk) - The decrease in 2021 was primarily due to the strengthening of the U.S. dollar against the euro[218](index=218&type=chunk) [Capitalization](index=52&type=section&id=Capitalization) Brink's debt-to-capitalization ratio remained at **92%** in 2021, with total debt increasing to **$2,966.7 million** primarily from revolving credit facility borrowings - Debt as a percentage of capitalization was **92%** at December 31, 2021, consistent with 2020[220](index=220&type=chunk) Summary of Debt, Equity and Other Liquidity Information (in millions) | Item | Dec 31, 2021 | Dec 31, 2020 | $ Change | | :------------------------------------ | :----------- | :----------- | :------- | | Total Debt | $2,966.7 | $2,485.7 | $481.0 | | Total equity | $252.6 | $202.5 | $50.1 | - Debt increased primarily from borrowings under the senior secured revolving credit facility, partially offset by repayment of the senior secured term loan A[220](index=220&type=chunk) - Equity increased due to net income, acquired noncontrolling interest, and stock-based compensation, partially offset by share repurchases and dividends[220](index=220&type=chunk) Reconciliation of Net Debt to U.S. GAAP Measures (in millions) | Item | Dec 31, 2021 | Dec 31, 2020 | $ Change | | :------------------------------------ | :----------- | :----------- | :------- | | Total Debt | $2,966.7 | $2,485.7 | $481.0 | | Less: Cash and cash equivalents | $710.3 | $620.9 | $89.4 | | Less: Amounts held by cash management services operations | $(34.7) | $(19.1) | $(15.6) | | Cash and cash equivalents available for general corporate purposes | $675.6 | $601.8 | $73.8 | | Net Debt | $2,291.1 | $1,883.9 | $407.2 | - Net Debt increased by **$407 million** in 2021, primarily due to funding business acquisitions and other working capital needs[225](index=225&type=chunk) - Brink's expects to meet liquidity needs for over the next twelve months using cash from operations, short-term borrowings, and **$505 million** available under its revolving credit facility[226](index=226&type=chunk) - As of December 31, 2021, cash and cash equivalents totaled **$710.3 million**, planned for working capital, capital expenditures, acquisitions, and general corporate purposes[229](index=229&type=chunk) [Off Balance Sheet Arrangements](index=55&type=section&id=Off%20Balance%20Sheet%20Arrangements) Brink's uses both on and off-balance sheet operating leases as a component of its capital structure to manage financing costs - The company uses operating leases, both on and off balance sheet, to lower financing costs, considering them an important part of its capital structure[233](index=233&type=chunk) - Short-term operating leases are not capitalized to the balance sheet[233](index=233&type=chunk) [U.S. Retirement Liabilities](index=56&type=section&id=U.S.%20Retirement%20Liabilities) ARPA significantly reduced and deferred minimum funding requirements for Brink's primary U.S. pension plan, eliminating expected cash payments in the foreseeable future - The American Rescue Plan Act (ARPA) in March 2021 provided funding relief for single-employer defined benefit pension plans, significantly reducing and deferring minimum funding requirements for Brink's primary U.S. pension plan[235](index=235&type=chunk) - Based on revised assumptions due to ARPA, no cash payments to the primary U.S. pension plan are needed in the foreseeable future[235](index=235&type=chunk)[238](index=238&type=chunk) Funded Status of U.S. Retirement Plans (in millions, as of Dec 31, 2021) | Plan | Beginning Funded Status | Ending Funded Status | | :------------------------ | :---------------------- | :------------------- | | Primary U.S. pension plan | $(151.1) | $(65.8) | | UMWA plans | $(272.1) | $(219.4) | | Black Lung plans | $(105.0) | $(101.3) | - The UMWA plans (**2,700 beneficiaries**) are not expected to require company contributions until 2032. Black Lung plans (**800 beneficiaries**) require ongoing payments from Brink's[239](index=239&type=chunk)[240](index=240&type=chunk) Summary of Projected Payments from Brink's to U.S. Plans (in millions) | Year | Primary U.S. Pension Plan | UMWA Plans | Black Lung Plans | Total | | :---------------- | :------------------------ | :--------- | :--------------- | :---- | | 2022 | — | — | $9.9 | $9.9 | | 2023 | — | — | $9.2 | $9.2 | | 2024 | — | — | $8.6 | $8.6 | | 2025 | — | — | $8.0 | $8.0 | | 2026 | — | — | $7.4 | $7.4 | | 2027 through 2031 | — | — | $34.1 | $34.1 | | 2032 and thereafter | — | $295.1 | $95.2 | $390.3 | | Total projected payments | — | $295.1 | $129.7 | $424.8 | [Contingent Matters](index=58&type=section&id=Contingent%20Matters) Brink's is cooperating with a DOJ investigation and recorded a **$9.5 million** charge for a Chilean antitrust matter - The company is cooperating with a U.S. Department of Justice (DOJ) investigation related to cross-border cash shipments and anti-money laundering compliance, but cannot predict the outcome or estimate potential losses[245](index=245&type=chunk) - An estimated loss of **$9.5 million** was recognized in Q3 2021 for a potential fine related to a Chilean antitrust matter, where Brink's Chile is accused of collusion in 2017 and 2018[136](index=136&type=chunk)[152](index=152&type=chunk)[247](index=247&type=chunk) - Brink's is involved in various other lawsuits and claims in the ordinary course of business, with accruals recorded for probable and estimable losses, but no material adverse effect on liquidity, financial position, or results of operations is expected from these matters[248](index=248&type=chunk) [APPLICATION OF CRITICAL ACCOUNTING POLICIES](index=61&type=section&id=APPLICATION%20OF%20CRITICAL%20ACCOUNTING%20POLICIES) Brink's critical accounting policies involve significant estimates for deferred tax assets, business acquisitions, goodwill impairment, and retirement benefit obligations - Application of accounting principles requires significant assumptions, estimates, and judgments, particularly for goodwill, intangibles, long-lived assets, pension and retirement benefits, legal contingencies, allowance for doubtful accounts, deferred tax assets, and purchase price allocations[250](index=250&type=chunk)[390](index=390&type=chunk) [Deferred Tax Asset Valuation Allowance](index=61&type=section&id=Deferred%20Tax%20Asset%20Valuation%20Allowance) Brink's establishes valuation allowances for deferred tax assets when realization is not more likely than not, based on historical earnings and future taxable income - Deferred tax assets arise from net operating losses, tax credit carryforwards, and temporary differences between financial statement and income tax purposes[251](index=251&type=chunk) - Valuation allowances are established when it's not more likely than not that a deferred tax asset will be realized, based on positive and negative evidence including historical earnings and future taxable income[252](index=252&type=chunk) Valuation Allowances (in millions) | Item | Dec 31, 2020 | | :--------- | :----------- | | U.S. | $94.9 | | Non-U.S. | $33.2 | | Total | $128.1 | - In 2021, a **$1 million** valuation allowance was recorded for U.S. deferred tax assets, and a **$9 million** tax expense was recognized for non-U.S. deferred tax assets (mainly Canada) due to changes in judgment[254](index=254&type=chunk)[257](index=257&type=chunk) [Business Acquisitions](index=62&type=section&id=Business%20Acquisitions) Brink's accounts for acquisitions by allocating purchase price to acquired assets and liabilities based on estimated fair values, involving significant estimates for intangible assets - Business acquisitions are accounted for using the acquisition method, allocating the total purchase price to acquired assets and assumed liabilities based on estimated fair values at the acquisition date[258](index=258&type=chunk) - The purchase price allocation requires significant estimates and assumptions, primarily for intangible assets, often involving outside valuation specialists and income-based valuation methods[259](index=259&type=chunk)[260](index=260&type=chunk) - Estimated fair values assigned to assets and liabilities can significantly affect future results, as higher intangible asset values lead to increased amortization expense and lower net income[260](index=260&type=chunk) [Goodwill, Other Intangible Assets and Property and Equipment Valuations](index=63&type=section&id=Goodwill%2C%20Other%20Intangible%20Assets%20and%20Property%20and%20Equipment%20Valuations) As of December 31, 2021, Brink's held **$1,411.7 million** in goodwill, **$491.2 million** in other intangible assets, and **$865.6 million** in property and equipment, with no goodwill impairment identified - As of December 31, 2021, the company had **$865.6 million** in property and equipment, **$1,411.7 million** in goodwill, and **$491.2 million** in other intangible assets[262](index=262&type=chunk) - Goodwill is tested for impairment annually (as of October 1) at the reporting unit level, using a quantitative assessment that weights the Income Approach and Public Company Market Multiple Method[263](index=263&type=chunk)[264](index=264&type=chunk) - Finite-lived intangible assets and property and equipment are reviewed for impairment when events indicate carrying amounts may not be recoverable, comparing undiscounted future net cash flows to carrying value[265](index=265&type=chunk) - No goodwill impairment was identified in 2021, and the fair value of each reporting unit exceeded its carrying value[264](index=264&type=chunk)[371](index=371&type=chunk) [Retirement and Postemployment Benefit Obligations](index=64&type=section&id=Retirement%20and%20Postemployment%20Benefit%20Obligations) Brink's manages significant defined benefit pension and retiree medical obligations, with ARPA reducing future funding requirements for the primary U.S. pension plan - The company provides benefits through defined benefit pension plans and retiree medical benefit plans, with significant obligations for its primary U.S. pension plan and UMWA retiree medical plans[268](index=268&type=chunk)[270](index=270&type=chunk) - Critical accounting estimates for these benefits include expected return on assets, discount rates, inflation, demographic factors, and changes in laws/regulations, with changes in assumptions having a material effect on liabilities and expenses[269](index=269&type=chunk) Discount Rates for U.S. Retirement Plans (in percentages) | Plan/Metric | 2021 (Cost) | 2020 (Cost) | 2019 (Cost) | 2021 (Obligation) | 2020 (Obligation) | 2019 (Obligation) | | :----------------------- | :---------- | :---------- | :---------- | :---------------- | :---------------- | :---------------- | | Primary U.S. pension plan | 2.4% | 3.3% | 4.4% | 2.8% | 2.4% | 3.3% | | UMWA plans | 2.3% | 3.2% | 4.3% | 2.8% | 2.3% | 3.2% | | Black Lung | 2.2% | 3.1% | 4.2% | 2.7% | 2.2% | 3.1% | - Sensitivity analysis shows that a **1%** lower discount rate would increase the primary U.S. pension plan obligation by **$109 million** and UMWA plans by **$44.8 million** as of December 31, 2021[276](index=276&type=chunk) - Expected return on assets for the primary U.S. pension plan is **7.00%** and for UMWA plans is **8.00%** for 2022, with a **1%** change in this assumption materially affecting net periodic benefit cost[278](index=278&type=chunk)[281](index=281&type=chunk) - The American Rescue Plan Act (ARPA) has significantly reduced and deferred minimum funding requirements for the primary U.S. pension plan, leading to no expected cash contributions in the foreseeable future[235](index=235&type=chunk)[238](index=238&type=chunk) [Foreign Currency Translation](index=70&type=section&id=Foreign%20Currency%20Translation) Brink's reports financial results in U.S. dollars, with Argentina's highly inflationary economy leading to remeasurement losses and currency controls - Foreign currency translation depends on whether the economy is designated as highly inflationary (three-year cumulative inflation rate over **100%**)[297](index=297&type=chunk) - For highly inflationary economies, the U.S. dollar is the functional currency, with local-currency monetary assets and liabilities remeasured into dollars at each balance sheet date, and gains/losses recognized in earnings[298](index=298&type=chunk) - Argentina's economy remains highly inflationary, with the Argentine peso declining approximately **19%** in 2021. Brink's recognized **$9.0 million** in pretax remeasurement losses in 2021[299](index=299&type=chunk)[300](index=300&type=chunk) - Currency controls in Argentina, implemented in September 2019, require central bank approval for many transactions, including dividend repatriation[302](index=302&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=72&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Brink's manages market risks from interest rates and foreign currency exchange rates through monitoring and hedging strategies - Brink's is exposed to market risks from changes in interest rates and foreign currency exchange rates, which are monitored and managed as part of its overall risk management program[306](index=306&type=chunk) - A hypothetical **10%** increase in floating interest rates would increase cash outflows by approximately **$0.5 million** over a twelve-month period, based on contractual rates at December 31, 2021[309](index=309&type=chunk) - The company uses short-term foreign currency forward and swap contracts (notional value **$614.0 million** at Dec 31, 2021) to hedge transactional risks, primarily in euro, British pound, and Mexican peso, with fair value changes recorded immediately in earnings[311](index=311&type=chunk) - Long-term cross-currency swaps are used to hedge Brazilian real exposure (notional **$75 million**) and net investments in euro functional currencies (notional **$400 million**), designated as cash flow and net investment hedges, respectively[312](index=312&type=chunk)[313](index=313&type=chunk) Hypothetical Effects of 10% U.S. Dollar Appreciation (in millions) | Item | Hypothetical Effects Increase/ (decrease) | | :------------------------------------ | :---------------------------------------- | | Effect on Earnings: | | | Translation of 2021 earnings into U.S. dollars | $(18.9) | | Transaction gains (losses) | $(5.8) | | Effect on Other Comprehensive Income (Loss): | | | Translation of net assets of foreign subsidiaries | $(132.7) | [Item 8. Financial Statements and Supplementary Data](index=75&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Brink's consolidated financial statements, management's report on internal control, independent auditor reports, and detailed notes [MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING](index=76&type=section&id=MANAGEMENT%27S%20ANNUAL%20REPORT%20ON%20INTERNAL%20CONTROL%20OVER%20FINANCIAL%20REPORTING) Management assessed Brink's internal control over financial reporting as effective as of December 31, 2021, excluding recently acquired Kuwait and PAI operations - Management is responsible for establishing and maintaining adequate internal control over financial reporting, designed to provide reasonable assurance for financial statement preparation and presentation[321](index=321&type=chunk) - As of December 31, 2021, management assessed its internal control over financial reporting as effective based on the COSO criteria[322](index=322&type=chunk) - The assessment excluded Kuwait operations (acquired Feb 2021) and PAI operations (acquired April 2021), which constituted **7% of total assets** and **3% of revenue** in the consolidated financial statements for 2021[322](index=322&type=chunk) [REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS](index=77&type=section&id=REPORTS%20OF%20INDEPENDENT%20REGISTERED%20PUBLIC%20ACCOUNTING%20FIRMS) KPMG LLP issued an unqualified opinion on Brink's consolidated financial statements and internal control over financial reporting, excluding recent acquisitions - KPMG LLP issued an unqualified opinion on the effectiveness of Brink's internal control over financial reporting as of December 31, 2021, based on COSO criteria[325](index=325&type=chunk) - KPMG also issued an unqualified opinion on the consolidated financial statements for the two-year period ended December 31, 2021[326](index=326&type=chunk)[330](index=330&type=chunk) - KPMG's audit of internal control over financial reporting excluded Kuwait operations from G4S and PAI Midco, Inc. due to their recent acquisition in 2021[327](index=327&type=chunk) - Deloitte & Touche LLP, the predecessor auditor, issued an opinion on the financial statements for the year ended December 31, 2019, presenting them fairly in all material respects[343](index=343&type=chunk) - Critical audit matters identified by KPMG included the valuation of goodwill for the Europe reporting unit and the fair value of acquired customer relationship intangible assets from the PAI acquisition, both involving significant estimates and judgments[334](index=334&type=chunk)[335](index=335&type=chunk)[338](index=338&type=chunk)[339](index=339&type=chunk) [CONSOLIDATED FINANCIAL STATEMENTS](index=83&type=section&id=CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents Brink's core consolidated financial statements, including balance sheets, statements of operations, an

The Brink's Company (NYSE:BCO) Q4 2021 Earnings Conference Call February 23, 2022 8:30 AM ET Company Participants Ed Cunningham - Vice President of Investor Relations & Corporate Communications Doug Pertz - Chief Executive Officer Mark Eubanks - Chief Operating Officer Ron Domanico - Chief Financial Officer Conference Call Participants Jasper Bibb - Truist Securities George Tong - Goldman Sachs Kenneth Williamson - JPMorgan Operator Welcome everyone to The Brink's Company Fourth Quarter 2021 Earnings Call. ...

Part I - Financial Information [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This chapter presents the company's unaudited condensed consolidated financial statements as of September 30, 2021, including the balance sheets, statements of operations, comprehensive income (loss), equity, and cash flows, reflecting the company's financial position and operating results for the quarter and nine-month period Condensed Consolidated Balance Sheets (Summary) | Metric | September 30, 2021 (Millions USD) | December 31, 2020 (Millions USD) | | :----------------------- | :----------------------- | :----------------------- | | **Assets** | | | | Cash and Cash Equivalents | 700.8 | 620.9 | | Restricted Cash | 321.7 | 322.0 | | Accounts Receivable, Net | 728.2 | 679.1 | | Total Current Assets | 1,962.8 | 1,814.8 | | Goodwill | 1,426.6 | 1,219.2 | | Total Assets | 5,552.9 | 5,135.6 | | **Liabilities and Equity** | | | | Short-term Borrowings | 8.1 | 14.2 | | Accrued Liabilities | 905.2 | 779.2 | | Total Current Liabilities | 1,404.0 | 1,336.2 | | Long-term Debt | 2,701.1 | 2,334.2 | | Total Liabilities | 5,303.9 | 4,933.1 | | Equity Attributable to Brink's Stockholders | 121.4 | 128.8 | | Total Equity | 249.0 | 202.5 | Condensed Consolidated Statements of Operations (Summary) | Metric | Three Months Ended September 30, 2021 (Millions USD) | Three Months Ended September 30, 2020 (Millions USD) | Nine Months Ended September 30, 2021 (Millions USD) | Nine Months Ended September 30, 2020 (Millions USD) | | :--------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Revenue | 1,075.5 | 970.5 | 3,102.0 | 2,669.3 | | Operating Profit | 74.2 | 76.4 | 209.2 | 101.6 | | Net Income (Loss) Attributable to Brink's | 19.0 | (23.9) | 55.6 | (9.2) | | Diluted Earnings Per Share from Continuing Operations | 0.38 | (0.47) | 1.11 | (0.17) | | Cash Dividends Per Share | 0.20 | 0.15 | 0.55 | 0.45 | Condensed Consolidated Statements of Cash Flows (Summary) | Metric | Nine Months Ended September 30, 2021 (Millions USD) | Nine Months Ended September 30, 2020 (Millions USD) | | :----------------------- | :----------------------------- | :----------------------------- | | Net Cash Provided by Operating Activities | 273.6 | 87.4 | | Net Cash Used in Investing Activities | (390.3) | (513.5) | | Net Cash Provided by Financing Activities | 234.6 | 749.2 | | Cash, Cash Equivalents, and Restricted Cash at End of Period | 1,022.5 | 795.4 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering key information such as accounting policies, business operations, financial instruments, debt, equity, retirement benefits, taxes, acquisitions and dispositions, contingent matters, and restructuring activities, offering context and detail for understanding the company's financial position and performance [Note 1 - Basis of Presentation](index=9&type=section&id=Note%201%20-%20Basis%20of%20presentation) This note outlines the basis for preparing the company's condensed consolidated financial statements, including adherence to U.S. GAAP and SEC regulations, emphasizing management's use of estimates and assumptions, and detailing the ongoing impact of the COVID-19 pandemic on operations and financial condition, along with policies on consolidation, foreign currency translation, Argentina and Venezuela operations, internal losses, goodwill, restricted cash, and new accounting standards - The company operates with four reportable segments: North America, Latin America, Europe, and Rest of World[19](index=19&type=chunk) - The COVID-19 pandemic has significantly impacted company operations, leading to reduced customer volumes, altered operating procedures, and increased costs, with the company implementing restructuring and operational adjustments in response[20](index=20&type=chunk)[21](index=21&type=chunk) - Argentina's economy has been deemed highly inflationary since July 1, 2018, requiring peso-denominated monetary assets and liabilities to be remeasured at each balance sheet date's exchange rate, with foreign exchange gains or losses recognized in earnings; for the first nine months of 2021, the company recognized **$6.6 million** in pre-tax remeasurement losses[28](index=28&type=chunk) - The company accounts for its Venezuela operations using the cost method, as currency controls and other government regulations restrict operational decision-making, failing to meet accounting standards for control[32](index=32&type=chunk) - For the first nine months of 2021, the company recognized a **$3.5 million** reduction in bad debt expense due to internal misappropriation losses in its U.S. global services business, primarily related to accounts receivable recovery[33](index=33&type=chunk) - In the first quarter of 2021, the company adjusted its reporting units from nine to four, aligning with its operating segments: North America, Latin America, Europe, and Rest of World[36](index=36&type=chunk) - The company temporarily holds customer cash in France and Malaysia for cash supply chain management services, which is classified as restricted cash; additionally, a **$7.5 million** restricted cash reserve is required under a revolving credit agreement[37](index=37&type=chunk) - The adoption of ASU 2016-13 (Financial Instruments—Credit Losses) on January 1, 2020, resulted in a **$1.7 million** decrease in retained earnings, while the adoption of ASU 2019-12 (Income Taxes) on January 1, 2021, led to a **$0.5 million** increase in retained earnings[38](index=38&type=chunk)[39](index=39&type=chunk) [Note 2 - Revenue from Contracts with Customers](index=13&type=section&id=Note%202%20-%20Revenue%20from%20Contracts%20with%20Customers) This note details the company's policies and classifications for recognizing revenue from customer contracts, encompassing core services, high-value services, and other security services, primarily recognizing revenue over time as services are provided, and discloses revenue data by reportable segment and revenue type, along with changes in contract assets and liabilities - Company services are categorized into three types: core services (cash-in-transit, ATM services), high-value services (cash management, global services, ATM management, payment services), and other security services (protection for airports, offices, warehouses, stores, and public places)[41](index=41&type=chunk)[42](index=42&type=chunk) - The company primarily recognizes revenue over time as services are provided, measured using the output method (units of service delivered), while revenue from goods sold (e.g., safe equipment) is recognized upon delivery[43](index=43&type=chunk) Revenue by Reportable Segment and Revenue Type (Three Months Ended September 30, 2021) | Reportable Segment | Core Services (Millions USD) | High-Value Services (Millions USD) | Other Security Services (Millions USD) | Total (Millions USD) | | :--------- | :------------------ | :-------------------- | :-------------------- | :-------------- | | North America | 178.1 | 182.6 | — | 360.7 | | Latin America | 171.0 | 113.3 | 5.0 | 289.3 | | Europe | 119.4 | 81.8 | 36.8 | 238.0 | | Rest of World | 56.6 | 117.6 | 13.3 | 187.5 | | **Total** | **525.1** | **495.3** | **55.1** | **1,075.5** | Revenue by Reportable Segment and Revenue Type (Nine Months Ended September 30, 2021) | Reportable Segment | Core Services (Millions USD) | High-Value Services (Millions USD) | Other Security Services (Millions USD) | Total (Millions USD) | | :--------- | :------------------ | :-------------------- | :-------------------- | :-------------- | | North America | 534.0 | 500.6 | — | 1,034.6 | | Latin America | 495.2 | 323.3 | 13.3 | 831.8 | | Europe | 346.8 | 230.9 | 105.5 | 683.2 | | Rest of World | 166.7 | 348.1 | 37.6 | 552.4 | | **Total** | **1,542.7** | **1,402.9** | **156.4** | **3,102.0** | Changes in Accounts Receivable, Contract Assets, and Contract Liabilities (Millions USD) | Metric | January 1, 2021 (Beginning Balance) | September 30, 2021 (Ending Balance) | Change | | :--------- | :------------------- | :------------------- | :------- | | Accounts Receivable | 679.1 | 728.2 | 49.1 | | Contract Assets | 0.4 | 6.5 | 6.1 | | Contract Liabilities | 15.1 | 15.1 | — | - For the first nine months of 2021, revenue recognized from the January 1, 2021, contract liability balance was **$12 million**[51](index=51&type=chunk) [Note 3 - Segment Information](index=16&type=section&id=Note%203%20-%20Segment%20information) This note details the company's division of operations into four reportable segments—North America, Latin America, Europe, and Rest of World—based on how the Chief Operating Decision Maker (CODM) allocates resources and assesses performance, explaining the exclusion of corporate expenses and other unallocated items from segment results, and disclosing revenue and operating profit data for each segment - The company's operations are divided into four reportable segments: North America (U.S. and Canada), Latin America (Latin American countries, including Mexico), Europe (primarily non-BGS services), and Rest of World (primarily BGS services in European countries, along with Middle East, Africa, and Asia operations)[58](index=58&type=chunk) - Segment results exclude corporate expenses (e.g., headquarters costs, foreign exchange gains/losses) and unallocated items (e.g., restructuring, acquisition and disposition costs, Argentina highly inflationary impact, Chile antitrust matter, internal losses)[57](index=57&type=chunk) Revenue and Operating Profit by Reportable Segment (Three Months Ended September 30, 2021) | Reportable Segment | Revenue (Millions USD) | Operating Profit (Millions USD) | | :--------- | :-------------- | :------------------ | | North America | 360.7 | 25.0 | | Latin America | 289.3 | 64.6 | | Europe | 238.0 | 28.1 | | Rest of World | 187.5 | 31.9 | | **Total** | **1,075.5** | **149.6** | Revenue and Operating Profit by Reportable Segment (Nine Months Ended September 30, 2021) | Reportable Segment | Revenue (Millions USD) | Operating Profit (Millions USD) | | :--------- | :-------------- | :------------------ | | North America | 1,034.6 | 98.4 | | Latin America | 831.8 | 180.4 | | Europe | 683.2 | 57.4 | | Rest of World | 552.4 | 94.2 | | **Total** | **3,102.0** | **430.4** | - In the first quarter of 2021, North America's operating profit increased by **$12.3 million** due to a change in bad debt reserve calculation, but a corresponding increase in corporate expenses resulted in no net impact on consolidated operating profit[60](index=60&type=chunk) [Note 4 - Retirement Benefits](index=19&type=section&id=Note%204%20-%20Retirement%20benefits) This note discloses the net periodic cost components of the company's pension plans and other postretirement benefits, covering both U.S. and non-U.S. plans, detailing service cost, interest cost, expected return on assets, amortization of losses, and settlement losses, and outlining the company's cash contributions to its primary U.S. pension plan Net Periodic Pension Cost (Three Months Ended September 30, 2021) | Metric | U.S. Plans (Millions USD) | Non-U.S. Plans (Millions USD) | Total (Millions USD) | | :------- | :------------------ | :-------------------- | :-------------- | | Service Cost | — | 2.1 | 2.1 | | Interest Cost | 6.7 | 3.0 | 8.3 | | Expected Return on Assets | (11.6) | (3.1) | (14.9) | | Amortization of Loss | 7.3 | 1.7 | 10.1 | | Settlement Loss | — | 0.3 | 0.3 | | **Net Periodic Pension Cost** | **2.4** | **4.0** | **5.9** | Net Periodic Pension Cost (Nine Months Ended September 30, 2021) | Metric | U.S. Plans (Millions USD) | Non-U.S. Plans (Millions USD) | Total (Millions USD) | | :------- | :------------------ | :-------------------- | :-------------- | | Service Cost | — | 6.8 | 6.8 | | Interest Cost | 15.9 | 9.0 | 24.9 | | Expected Return on Assets | (35.5) | (9.3) | (44.8) | | Amortization of Loss | 25.4 | 5.0 | 30.4 | | Amortization of Prior Service Cost | — | (0.1) | (0.1) | | Curtailment Gain | — | (0.6) | (0.6) | | Settlement Loss | — | 1.0 | 1.0 | | **Net Periodic Pension Cost** | **5.8** | **11.8** | **17.6** | - The company made no cash contributions to its primary U.S. pension plan in 2020 or the first nine months of 2021, and based on updated assumptions and the American Rescue Plan Act, no further contributions are required for the remainder of 2021[68](index=68&type=chunk) Net Periodic Postretirement Benefit Cost (Three Months Ended September 30, 2021) | Metric | UMWA Plan (Millions USD) | Black Lung and Other Plans (Millions USD) | Total (Millions USD) | | :------- | :------------------ | :------------------------ | :-------------- | | Interest Cost | 2.4 | 0.8 | 3.2 | | Expected Return on Assets | (3.1) | — | (3.1) | | Amortization of Loss | 4.3 | 2.3 | 6.6 | | Amortization of Prior Service Cost | (1.2) | — | (1.2) | | **Net Periodic Postretirement Benefit Cost** | **2.4** | **3.1** | **5.5** | Net Periodic Postretirement Benefit Cost (Nine Months Ended September 30, 2021) | Metric | UMWA Plan (Millions USD) | Black Lung and Other Plans (Millions USD) | Total (Millions USD) | | :------- | :------------------ | :------------------------ | :-------------- | | Service Cost | — | 0.1 | 0.1 | | Interest Cost | 7.3 | 2.4 | 9.7 | | Expected Return on Assets | (9.2) | — | (9.2) | | Amortization of Loss | 13.3 | 6.7 | 20.0 | | Amortization of Prior Service Cost | (3.5) | (0.2) | (3.7) | | **Net Periodic Postretirement Benefit Cost** | **7.9** | **9.0** | **16.9** | [Note 5 - Income Taxes](index=21&type=section&id=Note%205%20-%20Income%20taxes) This note provides the company's income tax provision and effective tax rate from continuing operations, explaining the variance between the effective tax rate and the U.S. statutory rate, primarily attributed to the geographic distribution of earnings, seasonal book losses, non-deductible expenses, and the nature of French business taxes Income Tax Provision and Effective Tax Rate from Continuing Operations | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | | :------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Income Tax Provision (Millions USD) | 22.9 | 58.9 | 59.2 | 3.5 | | Effective Tax Rate | 49.9% | 161.4% | 47.5% | (3,500.0)% | - The effective income tax rate for the first nine months of 2021 exceeded the **21%** U.S. statutory rate, primarily due to the geographic distribution of earnings, seasonal book losses without tax benefit, non-deductible expenses in Mexico, cross-border payment taxes, and the nature of French business taxes[74](index=74&type=chunk) - The effective income tax rate for the first nine months of 2020 was negative and not meaningful, primarily due to the level of pre-tax loss, compounded by factors such as the geographic distribution of earnings, seasonal book losses, non-deductible expenses, cross-border payment taxes, and the nature of French business taxes[75](index=75&type=chunk) [Note 6 - Acquisitions and Dispositions](index=22&type=section&id=Note%206%20-%20Acquisitions%20and%20Dispositions) This note details the company's significant acquisition activities in the first nine months of 2021 and 2020, including the acquisitions of PAI and G4S businesses, and the disposition of a French security services company, providing purchase consideration, fair value estimates of net assets, and the actual and pro forma impact of these acquisitions on the company's revenue and net income - On April 1, 2021, the company acquired PAI Midco, Inc. and its subsidiaries (PAI), the largest privately held ATM services provider in the U.S., for approximately **$216 million**, with PAI generating approximately **$95 million** in revenue in 2020[78](index=78&type=chunk) Fair Value of Net Assets Acquired in PAI Acquisition (Millions USD) | Asset Class | Acquisition Date | | :----------- | :------- | | Cash | 12.3 | | Accounts Receivable | 7.3 | | Intangible Assets | 95.0 | | Goodwill | 127.4 | | Total Net Assets | 215.5 | - The **$127.4 million** of goodwill from the PAI acquisition was allocated to the North America reportable segment, with less than **$2 million** expected to be tax-deductible[80](index=80&type=chunk) - The company completed the phased acquisition of most of G4S's cash management businesses in 2020 and the first quarter of 2021 for a total purchase consideration of **$837.1 million**, with G4S businesses generating approximately **$800 million** in annual revenue in 2019[82](index=82&type=chunk) Fair Value of Net Assets Acquired in G4S Acquisition (Millions USD) | Asset Class | Acquisition Date | | :----------- | :------- | | Cash | 244.4 | | Restricted Cash | 30.1 | | Accounts Receivable | 145.8 | | Intangible Assets | 206.0 | | Goodwill | 535.9 | | Total Net Assets | 953.5 | | Less: Noncontrolling Interests | (116.4) | | **Total Purchase Consideration** | **837.1** | - The **$535.9 million** of goodwill from the G4S acquisition was allocated to the Europe (**$191 million**), Rest of World (**$342 million**), and Latin America (**$3 million**) reportable segments, and is not expected to be tax-deductible[85](index=85&type=chunk) Actual Impact of Acquired Businesses on Brink's Consolidated Results (Millions USD) | Period | Business | Revenue | Net Income (Loss) Attributable to Brink's | | :--------- | :--- | :--- | :-------------------------- | | Three Months Ended September 30, 2021 | PAI | 33.5 | 2.9 | | | G4S | 172.6 | 4.9 | | **Total** | | **206.1** | **7.8** | | Nine Months Ended September 30, 2021 | PAI | 67.5 | 5.4 | | | G4S | 501.0 | 9.1 | | **Total** | | **568.5** | **14.5** | - On January 1, 2020, the company sold its **100%** ownership in a French security services company for a net sales price of approximately **$11 million**, recognizing a **$4.7 million** gain on disposition[90](index=90&type=chunk) [Note 7 - Accumulated Other Comprehensive Income (Loss)](index=26&type=section&id=Note%207%20-%20Accumulated%20other%20comprehensive%20income%20(loss)) This note details the components and changes in accumulated other comprehensive income (loss), including benefit plan adjustments, foreign currency translation adjustments, and gains (losses) on cash flow hedges, disaggregated by amounts attributable to Brink's and noncontrolling interests Changes in Accumulated Other Comprehensive Loss Attributable to Brink's (Millions USD) | Metric | Benefit Plan Adjustments | Foreign Currency Translation Adjustments | Gains (Losses) on Cash Flow Hedges | Total | | :--------------------------------- | :----------- | :----------- | :----------------------------- | :--- | | Balance at December 31, 2020 | (614.8) | (363.2) | (22.0) | (1,000.0) | | Other Comprehensive Income (Loss) Before Reclassifications | (8.4) | (48.2) | 3.0 | (53.6) | | Reclassifications from Accumulated Other Comprehensive Loss to Net Income | 34.6 | (2.0) | 6.4 | 39.0 | | Other Comprehensive Income (Loss) Attributable to Brink's | 26.2 | (50.2) | 9.4 | (14.6) | | Balance at September 30, 2021 | (588.6) | (413.4) | (12.6) | (1,014.6) | - Foreign currency translation adjustments for the three months ended September 30, 2021, primarily reflect the depreciation of the Brazilian Real, Mexican Peso, and Chilean Peso, while for the nine months ended September 30, 2021, they primarily reflect the depreciation of the Euro, Chilean Peso, Mexican Peso, and Brazilian Real[95](index=95&type=chunk) [Note 8 - Fair Value of Financial Instruments](index=28&type=section&id=Note%208%20-%20Fair%20value%20of%20financial%20instruments) This note provides fair value information for the company's financial instruments, including available-for-sale securities, fixed-rate debt, and forward and swap contracts, detailing their valuation methodologies and impact on financial statements, particularly the use of foreign currency forward and swap contracts and cross-currency swap contracts - The company's mutual funds and equity securities are reported at fair value, based on market quotations and classified as Level 1 valuations[98](index=98&type=chunk) Fair Value and Carrying Value of Fixed-Rate Debt (Millions USD) | Debt Type | Carrying Value September 30, 2021 | Fair Value September 30, 2021 | Carrying Value December 31, 2020 | Fair Value December 31, 2020 | | :------------- | :------------------- | :------------------- | :------------------- | :------------------- | | $600 Million Senior Unsecured Notes | 600.0 | 631.1 | 600.0 | 640.9 | | $400 Million Senior Unsecured Notes | 400.0 | 419.3 | 400.0 | 426.8 | - As of September 30, 2021, the company held short-term foreign currency forward and swap contracts not designated as accounting hedges with a notional value of **$544 million** and an average maturity of approximately one month, primarily hedging Euro, British Pound, and Mexican Peso exposures, with a fair value of approximately **$2.8 million** net asset[100](index=100&type=chunk)[101](index=101&type=chunk) - The company has a long-term cross-currency swap contract hedging Brazilian Real exposure, designated as a cash flow hedge, with a notional value of **$81 million**, a weighted-average maturity of **1.4 years**, and a fair value of **$26.4 million** net asset as of September 30, 2021[103](index=103&type=chunk)[104](index=104&type=chunk) - In the second quarter of 2021, the company entered into ten cross-currency swap contracts to hedge net investments in certain Euro functional currency subsidiaries, designated as net investment hedges, with a notional value of **$400 million**, a weighted-average maturity of **6.8 years**, and a fair value of **$18.2 million** net asset as of September 30, 2021[107](index=107&type=chunk)[108](index=108&type=chunk) [Note 9 - Debt](index=30&type=section&id=Note%209%20-%20Debt) This note details the company's short-term and long-term debt structure, including bank credit arrangements and senior unsecured notes, explaining the terms, interest rates, and collateral of the senior secured credit arrangements, the issuance and use of senior unsecured notes, and affirming the company's compliance with all debt covenants at the reporting period end Debt Composition (Millions USD) | Debt Type | September 30, 2021 | December 31, 2020 | | :----------- | :------------ | :------------- | | Short-term Borrowings | 8.1 | 14.2 | | Long-term Debt | 2,837.5 | 2,471.5 | | **Total Debt** | **2,845.6** | **2,485.7** | | Of which: Current Portion | 144.5 | 151.5 | | Noncurrent Portion | 2,701.1 | 2,334.2 | - The company's senior secured credit arrangements include a **$1 billion** revolving credit facility and a **$1.39 billion** term loan, both maturing on February 8, 2024, with the term loan requiring quarterly principal payments of **1.25%** of the initial loan amount[113](index=113&type=chunk)[114](index=114&type=chunk) - Interest rates for the revolving credit facility and term loan are based on LIBOR plus a floating margin or an alternative base rate plus a floating margin; as of September 30, 2021, the LIBOR borrowing margin was **2%**, and the alternative base rate borrowing margin was **1%**[115](index=115&type=chunk) - The company issued **$400 million** of five-year senior unsecured notes in June 2020, bearing an annual interest rate of **5.5%** and maturing on July 15, 2025, and **$600 million** of ten-year senior unsecured notes in October 2017, bearing an annual interest rate of **4.625%** and maturing on October 15, 2027[117](index=117&type=chunk) - As of September 30, 2021, the company was in compliance with all debt covenants, including both financial and non-financial covenants[122](index=122&type=chunk) [Note 10 - Credit Losses](index=33&type=section&id=Note%2010%20-%20Credit%20losses) This note describes the company's exposure to credit loss risk, primarily from core and high-value services provided to customers in the U.S. and over 100 countries globally, detailing the pooling of financial assets by geographic location for credit loss assessment and disclosing changes in the allowance for doubtful accounts for the first nine months of 2021 - The company primarily faces credit loss risk from selling core and high-value services to customers in the U.S. and over **100** countries globally, typically invoicing monthly with payment terms generally ranging from **30 to 60 days**[123](index=123&type=chunk) - The company pools financial assets by geographic location to assess credit losses and monitors historical loss rates and accounts receivable aging for each pool[123](index=123&type=chunk)[124](index=124&type=chunk) Changes in Allowance for Doubtful Accounts (Nine Months Ended September 30, 2021, Millions USD) | Metric | Amount | | :----------------------- | :--- | | Balance at December 31, 2020 | 30.7 | | Provision for Bad Debts | 2.9 | | Write-offs and Recoveries | (6.8) | | Foreign Currency Exchange Impact | (0.8) | | **Balance at September 30, 2021** | **26.0** | - The 2021 provision for bad debts includes a **$3.5 million** reduction due to internal losses in the U.S. global services business[125](index=125&type=chunk) [Note 11 - Share-Based Compensation Plans](index=34&type=section&id=Note%2011%20-%20Share-based%20compensation%20plans) This note details the company's share-based compensation plans, designed to attract and retain employees and non-employee directors while aligning their interests with stockholders, covering compensation expense and activity summaries for various awards including performance share units, restricted stock units, deferred stock units, performance stock options, and time-based stock options - The company grants restricted stock, restricted stock units, performance shares, performance units, stock appreciation rights, stock options, and other equity awards to employees through its 2013 and 2017 equity incentive plans, with the 2017 plan also allowing for deferred stock unit grants to directors[127](index=127&type=chunk)[128](index=128&type=chunk) - Compensation expense is measured using the fair value method and recognized based on changes in retirement eligibility provisions, with the expense recorded in selling, general, and administrative expenses[129](index=129&type=chunk)[130](index=130&type=chunk) Share-Based Compensation Expense (Millions USD) | Award Type | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | | :----------- | :------------------ | :------------------ | :------------------ | :------------------ | | Performance Share Units | 6.2 | 5.5 | 18.7 | 12.5 | | Restricted Stock Units | 2.4 | 1.5 | 7.0 | 4.5 | | Deferred Stock Units and Stock-Settled Awards | 0.4 | 0.3 | 1.0 | 0.9 | | Performance Stock Options | — | 0.5 | 0.3 | 1.7 | | Time-Based Stock Options | 0.2 | 0.5 | 0.9 | 1.3 | | Cash Awards | 0.2 | 0.4 | 0.8 | 0.8 | | **Share-Based Compensation Expense** | **9.4** | **8.7** | **28.7** | **21.7** | Performance Stock Option Activity (Nine Months Ended September 30, 2021) | Metric | Shares (Thousands) | Weighted-Average Grant Date Fair Value | | :----------------------- | :----------- | :--------------------- | | Outstanding at December 31, 2020 | 1,165.0 | 11.17 | | Granted | — | — | | Expired | (184.7) | 15.23 | | Exercised | (33.8) | 14.72 | | **Outstanding at September 30, 2021** | **946.5** | **10.25** | Restricted Stock Unit (RSU) Activity (Nine Months Ended September 30, 2021) | Metric | Shares (Thousands) | Weighted-Average Grant Date Fair Value | | :----------------------- | :----------- | :--------------------- | | Unvested at December 31, 2020 | 251.8 | 72.30 | | Granted | 110.1 | 78.35 | | Forfeited | (8.5) | 65.95 | | Vested | (77.5) | 74.07 | | **Unvested at September 30, 2021** | **275.9** | **74.42** | Performance Share Unit (PSU) Activity (Nine Months Ended September 30, 2021) | Metric | Shares (Thousands) | Weighted-Average Grant Date Fair Value | | :----------------------- | :----------- | :--------------------- | | Unvested at December 31, 2020 | 576.7 | 80.43 | | Granted | 290.5 | 80.59 | | Forfeited | (15.7) | 79.03 | | Vested | (149.5) | 74.03 | | **Unvested at September 30, 2021** | **702.0** | **81.90** | [Note 12 - Capital Stock](index=37&type=section&id=Note%2012%20-%20Capital%20Stock) This note provides detailed information on the company's capital stock, including weighted-average shares outstanding for EPS calculation, authorized and issued common and preferred stock, dividend payments, and share repurchase programs, also disclosing specific terms and execution of the 2021 Accelerated Share Repurchase (ASR) agreement Weighted-Average Shares Outstanding for Earnings Per Share Calculation (Millions of Shares) | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | | :------- | :------------------ | :------------------ | :------------------ | :------------------ | | Basic | 49.8 | 50.4 | 49.9 | 50.6 | | Diluted | 50.3 | 50.4 | 50.4 | 50.6 | - As of September 30, 2021, the company had **100 million** shares of common stock authorized for issuance, with **49.1 million** shares issued and outstanding[147](index=147&type=chunk) - For the first nine months of 2021, the company paid dividends of **$0.55 per share** to stockholders, totaling **$27.3 million**, an increase from **$0.45 per share** or **$22.7 million** in the first nine months of 2020[148](index=148&type=chunk) - On February 6, 2020, the Board of Directors authorized a **$250 million** share repurchase program, set to expire on December 31, 2021[150](index=150&type=chunk) - In August 2021, the company entered into a **$50 million** Accelerated Share Repurchase (ASR) agreement, repurchasing **524,315** shares of common stock at an average price of **$95.36 per share**; in September, the ASR was early terminated, and an additional **131,384** shares were received and retired, bringing the total repurchase price to **$76.25 per share**[151](index=151&type=chunk) - As of September 30, 2021, **$150 million** remained available under the **$250 million** repurchase program[152](index=152&type=chunk) [Note 13 - Supplemental Cash Flow Information](index=38&type=section&id=Note%2013%20-%20Supplemental%20cash%20flow%20information) This note provides supplemental cash flow information, including interest and income taxes paid, along with details on Argentine currency conversions, non-cash investing and financing activities, and restricted cash Cash Paid (Millions USD) | Metric | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | | :------- | :------------------ | :------------------ | | Interest | 78.7 | 54.1 | | Income Taxes, Net | 55.9 | 42.9 | - For the three months ended September 30, 2020, the company recognized a **$10.4 million** foreign exchange loss from converting Argentine Pesos to U.S. Dollars, with no such losses in the first nine months of 2021[155](index=155&type=chunk) - For the first nine months of 2021, the company acquired **$57.7 million** in armored vehicles and other equipment through finance lease arrangements, an increase from **$24.3 million** in the first nine months of 2020[156](index=156&type=chunk) - As of September 30, 2021, the company held **$321.7 million** in restricted cash, with **$167.5 million** held for customers and **$144.2 million** for accrued liabilities[159](index=159&type=chunk) [Note 14 - Contingent Matters](index=39&type=section&id=Note%2014%20-%20Contingent%20matters) This note discloses the company's contingent matters, including an ongoing U.S. Department of Justice investigation, allegations from Chile's antitrust authority, and other routine business litigation and claims; the company has recorded a **$9.5 million** charge for the Chile antitrust matter and intends to vigorously defend itself - The company is cooperating with a U.S. Department of Justice (DOJ) investigation regarding cross-border cash and valuables transportation and anti-money laundering compliance, with the outcome or range of loss currently unpredictable[161](index=161&type=chunk) - Chile's antitrust authority (FNE) has accused Brink's Chile of collusion in 2017 and 2018, seeking a **$30.5 million** fine; the company has recorded a **$9.5 million** charge for this matter and plans to vigorously defend itself[162](index=162&type=chunk) - The company is also involved in other routine business litigation and claims, for which it has accrued for probable and reasonably estimable losses, and believes that, apart from disclosed matters, other litigation will not materially adversely affect its liquidity, financial condition, or results of operations[163](index=163&type=chunk) [Note 15 - Reorganization and Restructuring](index=39&type=section&id=Note%2015%20-%20Reorganization%20and%20Restructuring) This note details the company's restructuring activities and associated costs implemented in the first nine months of 2021 and 2020, primarily aimed at addressing the COVID-19 pandemic, with expectations of reducing headcount and generating annual cost savings - For the first nine months of 2021, the company recognized **$35.7 million** in net restructuring costs, primarily severance, with approximately **$5 million** related to 2020-approved plans and the remainder to 2021-approved plans, largely in response to the COVID-19 pandemic[164](index=164&type=chunk) - Current restructuring actions are expected to eliminate **1,400 to 1,600** positions, generating **$30 million to $35 million** in annual cost savings, with uncompleted actions projected to incur an additional **$5 million to $7 million** in future costs[214](index=214&type=chunk) Changes in Restructuring Accrued Liabilities (Millions USD) | Metric | Severance | Other | Total | | :----------------------- | :----- | :--- | :--- | | Balance at January 1, 2021 | 9.3 | — | 9.3 | | Expense | 30.1 | 5.6 | 35.7 | | Payments and Utilization | (19.2) | (5.6) | (24.8) | | Foreign Currency Exchange Impact | (0.3) | — | (0.3) | | **Balance at September 30, 2021** | **19.9** | **—** | **19.9** | [Note 16 - Subsequent Events](index=39&type=section&id=Note%2016%20-%20Subsequent%20Events) This note discloses the company's post-reporting period announcement of an Accelerated Share Repurchase (ASR) program to repurchase **$150 million** of common stock as part of an existing **$250 million** repurchase plan, along with an additional **$250 million** repurchase authorization from the Board of Directors - On October 27, 2021, Brink's announced plans to enter into an Accelerated Share Repurchase (ASR) agreement with J.P. Morgan Chase Bank, N.A. to repurchase **$150 million** of common stock, as part of the **$250 million** share repurchase program authorized on February 6, 2020[167](index=167&type=chunk) - On the same day, the Board of Directors approved an additional **$250 million** for share repurchases, with this authorization expiring on December 31, 2023[167](index=167&type=chunk) ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS [Overview of Services and Segment Structure](index=40&type=section&id=Overview%20of%20Services%20and%20Segment%20Structure) This section outlines Brink's global cash and valuables transportation and logistics management services, including cash-in-transit, ATM services, global services, cash management, payment services, commercial security systems, and security services, also detailing the company's four adjusted operating segments as of Q4 2020: North America, Latin America, Europe, and Rest of World, and their management and reporting structure - Brink's provides global cash and valuables transportation and logistics management services, including cash-in-transit (CIT), ATM services, global services, cash management services, payment services, commercial security systems services, and security services[168](index=168&type=chunk) - The company's operations are divided into four operating segments—North America, Latin America, Europe, and Rest of World—based on how the Chief Operating Decision Maker (CODM) allocates resources and assesses performance[169](index=169&type=chunk) - The North America segment includes U.S. and Canadian operations and the Brink's Global Services (BGS) business line; the Latin America segment includes operations in Latin American countries and the BGS business line, incorporating Mexico operations previously part of North America[169](index=169&type=chunk) - The Europe segment primarily offers non-BGS services but includes the BGS business line; the Rest of World segment primarily provides BGS services, also encompassing other business lines, and includes BGS activities in the Middle East, Africa, Asia, and certain Latin American countries[169](index=169&type=chunk) [COVID-19 Pandemic Impact](index=41&type=section&id=COVID-19%20Pandemic%20Impact) This section details the ongoing significant adverse impact of the COVID-19 pandemic on the company's operations and financial condition, including reduced customer volumes and increased operating costs; the company has implemented measures to protect employees, provide essential services, preserve cash, and optimize profitability, continuously assessing the long-term effects, though the full impact remains uncertain - The COVID-19 pandemic began to significantly impact company operations in the first quarter of 2020, leading to reduced customer volumes, altered operating procedures, and increased costs[173](index=173&type=chunk) - The company's three priorities in response to the pandemic are: protecting employees and providing essential services; preserving cash and optimizing profitability; and making Brink's stronger post-crisis[172](index=172&type=chunk) - The company has taken steps to adjust its operations and reduce costs through restructuring activities and operational changes to mitigate the pandemic's impact and align with anticipated future revenue levels[173](index=173&type=chunk) - The full impact of the pandemic depends on numerous uncertain or undetermined factors and is expected to continue affecting the company's financial condition and results of operations for an unknown duration[174](index=174&type=chunk) [Results of Operations](index=42&type=section&id=RESULTS%20OF%20OPERATIONS) This section provides a detailed analysis of the company's operating results for the third quarter and first nine months of 2021, covering revenue, costs, operating profit, and EPS on both GAAP and non-GAAP bases, including consolidated performance and segment-specific results, and explaining key influencing factors such as acquisitions, exchange rate fluctuations, restructuring, and special items [Consolidated Review (GAAP Basis)](index=42&type=section&id=Consolidated%20Review%20(GAAP%20Basis)) This section reviews the company's consolidated performance on a GAAP basis, comparing revenue, costs, operating profit, and net income and EPS from continuing operations attributable to Brink's for Q3 2021 versus Q3 2020, and the first nine months of 2021 versus 2020, explaining key drivers of these changes GAAP Consolidated Results Summary (Millions USD, Except Per Share Amounts) | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Change % | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Change % | | :--------------------------------- | :------------------ | :------------------ | :--------- | :------------------ | :------------------ | :--------- | | Revenue | 1,075.5 | 970.5 | 11% | 3,102.0 | 2,669.3 | 16% | | Operating Profit | 74.2 | 76.4 | (3)% | 209.2 | 101.6 | Favorable | | Net Income from Continuing Operations Attributable to Brink's | 19.0 | (23.8) | Favorable | 55.7 | (8.3) | Favorable | | Diluted Earnings Per Share from Continuing Operations | 0.38 | (0.47) | Favorable | 1.11 | (0.17) | Favorable | - Consolidated revenue for the third quarter of 2021 increased by **$105 million**, primarily driven by organic growth in Latin America (**$35.3 million**), North America (**$16.9 million**), and Europe (**$5 million**), along with the impact of acquisitions (**$46 million**) and favorable foreign currency exchange rates (**$4.7 million**)[181](index=181&type=chunk) - Consolidated operating profit for the third quarter of 2021 decreased by **$2.2 million**, primarily due to increased corporate expenses, organic declines in Rest of World and North America, and higher charges for the Chile antitrust matter and restructuring costs, partially offset by organic growth in Latin America and Europe, favorable foreign currency exchange rate changes, and the operating impact of acquisitions[182](index=182&type=chunk) - Consolidated revenue for the first nine months of 2021 increased by **$432.7 million**, primarily driven by acquisitions (**$275 million**), organic growth in Latin America (**$73.2 million**), North America (**$47.1 million**), and Europe (**$9.3 million**), and favorable foreign currency exchange rates (**$34.4 million**)[184](index=184&type=chunk) - Consolidated operating profit for the first nine months of 2021 increased by **$107.6 million**, primarily due to organic growth across North America, Latin America, Europe, and Rest of World, reduced restructuring charges, lower internal loss-related expenses, decreased acquisition and disposition costs, and the operating impact of acquisitions and favorable foreign currency exchange rate changes, partially offset by increased corporate expenses and charges for the Chile antitrust matter[185](index=185&type=chunk) [Consolidated Review (Non-GAAP Basis)](index=44&type=section&id=Consolidated%20Review%20(Non-GAAP%20Basis)) This section reviews the company's consolidated performance on a non-GAAP basis, comparing revenue, operating profit, and net income and EPS from continuing operations attributable to Brink's for Q3 2021 versus Q3 2020, and the first nine months of 2021 versus 2020, explaining key drivers of these changes Non-GAAP Consolidated Results Summary (Millions USD, Except Per Share Amounts) | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Change % | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Change % | | :--------------------------------- | :------------------ | :------------------ | :--------- | :------------------ | :------------------ | :--------- | | Non-GAAP Revenue | 1,075.5 | 970.5 | 11% | 3,102.0 | 2,669.3 | 16% | | Non-GAAP Operating Profit | 115.9 | 99.9 | 16% | 316.6 | 236.2 | 34% | | Non-GAAP Net Income from Continuing Operations Attributable to Brink's | 57.4 | 45.0 | 28% | 156.2 | 108.1 | 44% | | Non-GAAP Diluted Earnings Per Share from Continuing Operations | 1.14 | 0.89 | 28% | 3.10 | 2.12 | 46% | - Non-GAAP consolidated operating profit for the third quarter of 2021 increased by **$16 million**, primarily driven by organic growth in Latin America and Europe, the operating impact of acquisitions, and favorable foreign currency exchange rate changes, partially offset by increased corporate expenses and organic declines in Rest of World and North America[187](index=187&type=chunk) - Non-GAAP consolidated operating profit for the first nine months of 2021 increased by **$80.4 million**, primarily driven by organic growth across North America, Latin America, Europe, and Rest of World, the operating impact of acquisitions, and favorable foreign currency exchange rate changes, partially offset by increased corporate expenses[189](index=189&type=chunk) [Revenues and Operating Profit by Segment](index=47&type=section&id=Revenues%20and%20Operating%20Profit%20by%20Segment) This section provides a detailed analysis of revenue and operating profit performance for each of the company's reportable segments (North America, Latin America, Europe, and Rest of World) for the third quarter and first nine months of 2021, explaining the specific impact of organic growth, acquisitions, dispositions, and foreign currency exchange rate changes on each segment's results Revenue and Operating Profit by Segment (Three Months Ended September 30, 2021, Millions USD) | Reportable Segment | Q3 2020 Revenue | Organic Change | Acquisitions/Dispositions | FX Impact | Q3 2021 Revenue | Total Change % | Organic Change % | | :--------- | :----------------- | :------- | :-------- | :------- | :----------------- | :------ | :-------- | | North America | 316.8 | 16.9 | 25.2 | 1.8 | 360.7 | 14 | 5 | | Latin America | 256.7 | 35.3 | 0.6 | (3.3) | 289.3 | 13 | 14 | | Europe | 224.0 | 5.0 | 7.7 | 1.3 | 238.0 | 6 | 2 | | Rest of World | 173.0 | (2.9) | 12.5 | 4.9 | 187.5 | 8 | (2) | | **Total Segment Revenue** | **970.5** | **54.3** | **46.0** | **4.7** | **1,075.5** | **11** | **6** | | Reportable Segment | Q3 2020 Operating Profit | Organic Change | Acquisitions/Dispositions | FX Impact | Q3 2021 Operating Profit | Total Change % | Organic Change % | | :--------- | :------------------- | :------- | :-------- | :------- | :------------------- | :------ | :-------- | | North America | 24.1 | (3.7) | 4.5 | 0.1 | 25.0 | 4 | (15) | | Latin America | 51.1 | 17.0 | 0.1 | (3.6) | 64.6 | 26 | 33 | | Europe | 18.8 | 7.7 | 1.4 | 0.2 | 28.1 | 49 | 41 | | Rest of World | 36.1 | (6.5) | 1.4 | 0.9 | 31.9 | (12) | (18) | | **Total Segment Operating Profit** | **130.1** | **14.5** | **7.4** | **(2.4)** | **149.6** | **15** | **11** | - North America segment revenue increased by **14%**, driven primarily by the PAI acquisition (**$25.2 million**) and **5%** organic growth (**$16.9 million**); operating profit increased by **$0.9 million**, primarily due to the favorable impact of the PAI acquisition (**$4.5 million**), partially offset by a **15%** organic decline (**$3.7 million**) mainly from increased U.S. labor costs and security losses[195](index=195&type=chunk) - Latin America segment revenue increased by **13%**, primarily driven by **14%** organic growth (**$35.3 million**); operating profit increased by **26%** (**$13.5 million**), primarily driven by **33%** organic growth (**$17 million**), including benefits from labor and other operating cost savings initiatives, partially offset by unfavorable foreign currency exchange rate impacts[196](index=196&type=chunk) Revenue and Operating Profit by Segment (Nine Months Ended September 30, 2021, Millions USD) | Reportable Segment | YTD 2020 Revenue | Organic Change | Acquisitions/Dispositions | FX Impact | YTD 2021 Revenue | Total Change % | Organic Change % | | :--------- | :------------- | :------- | :-------- | :------- | :------------- | :------ | :-------- | | North America | 932.0 | 47.1 | 47.8 | 7.7 | 1,034.6 | 11 | 5 | | Latin America | 786.1 | 73.2 | 7.1 | (34.6) | 831.8 | 6 | 9 | | Europe | 518.2 | 9.3 | 118.1 | 37.6 | 683.2 | 32 | 2 | | Rest of World | 433.0 | (6.3) | 102.0 | 23.7 | 552.4 | 28 | (1) | | **Total Segment Revenue** | **2,669.3** | **123.3** | **275.0** | **34.4** | **3,102.0** | **16** | **5** | | Reportable Segment | YTD 2020 Operating Profit | Organic Change | Acquisitions/Dispositions | FX Impact | YTD 2021 Operating Profit | Total Change % | Organic Change % | | :--------- | :----------------- | :------- | :-------- | :------- | :----------------- | :------ | :-------- | | North America | 45.9 | 44.1 | 8.2 | 0.2 | 98.4 | Favorable | 96 | | Latin America | 153.4 | 40.9 | 0.5 | (14.4) | 180.4 | 18 | 27 | | Europe | 22.1 | 23.6 | 9.4 | 2.3 | 57.4 | Favorable | Favorable | | Rest of World | 80.7 | 3.6 | 5.8 | 4.1 | 94.2 | 17 | 4 | | **Total Segment Operating Profit** | **302.1** | **112.2** | **23.9** | **(7.8)** | **430.4** | **42** | **37** | - North America segment revenue increased by **11%**, driven primarily by acquisitions (**$47.8 million**) and **5%** organic growth (**$47.1 million**); operating profit increased by **$52.5 million**, primarily due to **96%** organic growth (**$44.1 million**) and the favorable impact of acquisitions (**$8.2 million**)[203](index=203&type=chunk) - Latin America segment revenue increased by **6%**, primarily driven by **9%** organic growth (**$73.2 million**); operating profit increased by **18%** (**$27 million**), primarily due to **27%** organic growth (**$40.9 million**), partially offset by unfavorable foreign currency exchange rates (**$14.4 million**)[205](index=205&type=chunk) [Income and Expense Not Allocated to Segments](index=52&type=section&id=Income%20and%20Expense%20Not%20Allocated%20to%20Segments) This section details corporate expenses and other items not allocated to operating segments, including headquarters costs, foreign exchange gains/losses, accounting policy adjustments, restructuring charges, acquisition and disposition costs, Argentina highly inflationary impact, Chile antitrust matter, internal losses, and reporting compliance costs, explaining their impact on consolidated operating profit and reasons for changes Corporate Expenses (Millions USD) | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Change % | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Change % | | :----------------------- | :------------------ | :------------------ | :--------- | :------------------ | :------------------ | :--------- | | General, Administrative, and Other Expenses | (34.8) | (26.6) | 31% | (103.4) | (78.5) | 32% | | Foreign Currency Transaction Gains (Losses) | 1.4 | (7.9) | Favorable | 1.4 | (11.5) | Favorable | | Segment Policy to GAAP Adjustments | (0.3) | 4.3 | Unfavorable | (11.8) | 24.1 | Unfavorable | | **Corporate Expenses** | **(33.7)** | **(30.2)** | **12%** | **(113.8)** | **(65.9)** | **73%** | - Corporate expenses for the first nine months of 2021 increased by **$47.9 million**, primarily due to higher bad debt expense (**$34.7 million**), increased new service product development costs (**$11.1 million**), higher share-based and other incentive compensation (**$8.8 million**), and a reduction in Mexico profit-sharing plan adjustments (**$1.2 million**), partially offset by lower foreign currency transaction losses (**$12.9 million**)[210](index=210&type=chunk) Other Items Not Allocated to Segments (Operating Profit, Millions USD) | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Change % | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Change % | | :----------------------- | :------------------ | :------------------ | :--------- | :------------------ | :------------------ | :--------- | | Restructuring | (14.0) | (5.1) | Unfavorable | (35.7) | (49.7) | (28)% | | Acquisitions and Dispositions | (16.6) | (16.2) | 2% | (55.8) | (66.2) | (16)% | | Argentina Highly Inflationary Impact | (2.3) | (3.2) | (28)% | (8.8) | (8.4) | 5% | | Chile Antitrust Matter | (9.5) | — | Unfavorable | (9.5) | — | Unfavorable | | Internal Losses | 0.7 | 0.9 | (22)% | 2.4 | (9.9) | Favorable | | Reporting Compliance | — | 0.1 | (100)% | — | (0.4) | (100)% | | **Operating Profit** | **(41.7)** | **(23.5)** | **77%** | **(107.4)** | **(134.6)** | **(20)%** | - Other items not allocated to segments resulted in a **$41.7 million** loss for the third quarter of 2021, primarily due to increased charges for the Chile antitrust matter and restructuring, partially offset by reduced charges from Argentina's highly inflationary accounting treatment[212](index=212&type=chunk) - Other items not allocated to segments resulted in a **$107.4 million** loss for the first nine months of 2021, primarily due to reduced restructuring charges, lower net internal loss-related expenses, and decreased acquisition and disposition costs, partially offset by charges for the Chile antitrust matter[213](index=213&type=chunk) [Foreign Operations](index=56&type=section&id=Foreign%20Operations) This section discusses risks faced by the company's foreign operations, including labor and economic conditions, political instability, exchange rate fluctuations, and capital repatriation controls, detailing the impact of Argentina's highly inflationary economy, currency controls, and the company's use of foreign currency forward and swap contracts to hedge transactional exposures - The company operates in over **100** countries globally, facing risks such as labor and economic conditions, international sanctions, political instability, profit and capital repatriation controls, nationalization, and expropriation[223](index=223&type=chunk) - Argentina's economy remains highly inflationary, with the company holding **$58.6 million** in Argentine Peso-denominated net monetary assets as of September 30, 2021; the Argentine government implemented currency controls in September 2019, restricting dividend repatriation[224](index=224&type=chunk)[225](index=225&type=chunk) - In the third quarter of 2020, the company converted Argentine Pesos to U.S. Dollars through other market mechanisms, resulting in a **$10.4 million** foreign exchange loss, with no such losses in the first nine months of 2021[226](index=226&type=chunk) - As of September 30, 2021, the company held short-term foreign currency forward and swap contracts not designated as accounting hedges with a notional value of **$544 million** and a fair value of approximately **$2.8 million** net asset[228](index=228&type=chunk) Impact of Derivative Gains (Losses) on Other Operating Income (Expense) and Nonoperating Income (Expense) (Millions USD) | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | | :--------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Derivative Gains (Losses) Included in Other Operating Income (Expense) | 6.3 | (3.4) | 14.5 | 0.5 | | Derivative Losses Included in Other Nonoperating Income (Expense) | — | (0.5) | — | (8.6) | - The company has a long-term cross-currency swap contract hedging Brazilian Real exposure, designated as a cash flow hedge, with a notional value of **$81 million** and a fair value of **$26.4 million** net asset as of September 30, 2021[231](index=231&type=chunk)[232](index=232&type=chunk)[234](index=234&type=chunk) - In the second quarter of 2021, the company entered into ten cross-currency swap contracts to hedge net investments in certain Euro functional currency subsidiaries, designated as net investment hedges, with a notional value of **$400 million** and a fair value of **$18.2 million** net asset as of September 30, 2021[235](index=235&type=chunk)[236](index=236&type=chunk) [Other Operating Income (Expense)](index=59&type=section&id=Other%20Operating%20Income%20(Expense)) This section analyzes the composition and changes in the company's other operating income (expense) for the third quarter and first nine months of 2021, primarily including foreign currency items, gains (losses) on asset sales, impairment losses, equity in earnings of unconsolidated affiliates, and royalty income Composition of Other Operating Income (Expense) (Millions USD) | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Change % | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Change % | | :----------------------- | :------------------ | :------------------ | :--------- | :------------------ | :------------------ | :--------- | | Foreign Currency Items | (0.2) | (9.8) | Favorable | (5.3) | (16.8) | Favorable | | Gains (Losses) on Sale of Assets | — | 0.6 | (100)% | (1.4) | 0.4 | Unfavorable | | Impairment Losses | (5.0) | (3.4) | 47% | (7.5) | (8.3) | (10)% | | Equity in Earnings of Unconsolidated Affiliates | 0.3 | 0.4 | (25)% | 0.7 | 0.6 | 17% | | Royalty Income | 1.5 | 1.2 | 25% | 4.0 | 3.5 | 14% | | Other Gains (Losses) | 1.6 | 1.2 | 33% | 4.3 | 2.2 | 95% | | **Other Operating Income (Expense)** | **(1.8)** | **(9.8)** | **(82)%** | **(5.2)** | **(18.4)** | **(72)%** | - Other operating income (expense) for the third quarter of 2021 was an expense of **$1.8 million**, an improvement from the **$9.8 million** expense in the prior-year period, primarily due to lower net foreign currency item losses[240](index=240&type=chunk) - Other operating income (expense) for the first nine months of 2021 was an expense of **$5.2 million**, an improvement from the **$18.4 million** expense in the prior-year period, primarily due to lower net foreign currency item losses[241](index=241&type=chunk) [Nonoperating Income and Expense](index=60&type=section&id=Nonoperating%20Income%20and%20Expense) This section analyzes the company's nonoperating income and expense for the third quarter and first nine months of 2021, primarily including interest expense, interest income, gains (losses) on equity securities, foreign currency transaction gains (losses), and postretirement benefit costs, explaining the reasons for changes such as increased borrowing levels and Brazilian non-income tax credits Interest Expense (Millions USD) | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Change % | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Change % | | :------- | :------------------ | :------------------ | :--------- | :------------------ | :------------------ | :--------- | | Interest Expense | 27.6 | 27.1 | 2% | 83.0 | 70.3 | 18% | - Interest expense increased in the third quarter of 2021 primarily due to higher interest rates, while for the first nine months of 2021, it increased mainly due to higher borrowing levels from business acquisitions[243](index=243&type=chunk)[244](index=244&type=chunk) Composition of Interest and Other Nonoperating Income (Expense) (Millions USD) | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Change % | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Change % | | :----------------------- | :------------------ | :------------------ | :--------- | :------------------ | :------------------ | :--------- | | Interest Income | 3.3 | 2.3 | 43% | 8.0 | 5.0 | 60% | | Gains (Losses) on Equity Securities | 2.1 | (1.1) | Favorable | 16.3 | 2.3 | Favorable | | Foreign Currency Transaction Gains (Losses) | 0.6 | — | Favorable | 0.5 | (0.1) | Favorable | | Derivative Losses | — | (0.5) | Favorable | — | (8.6) | Favorable | | Postretirement Benefit Costs (Non-Service Costs) | (9.3) | (10.3) | (10)% | (27.6) | (28.6) | (3)% | | G4S Indemnification Asset Adjustment | 2.2 | — | Favorable | 2.7 | — | Favorable | | Acquisition-Related Gains (Losses) | 0.4 | — | Favorable | 0.4 | — | Favorable | | Non-Income Tax Penalties and Interest | — | — | — | (1.7) | — | Unfavorable | | Gain on Disposition of Subsidiary | — | — | — | — | 4.7 | Unfavorable | | Non-Income Tax Credit Interest | 1.2 | — | Favorable | 1.2 | — | Favorable | | Other | 0.8 | (1.3) | Favorable | 0.6 | (2.6) | Favorable | | **Interest and Other Nonoperating Income (Expense)** | **(0.7)** | **(12.8)** | **(95)%** | **(1.6)** | **(31.4)** | **(95)%** | - Interest and other nonoperating income (expense) for the third quarter of 2021 was an expense of **$0.7 million**, a significant improvement from the **$12.8 million** expense in the prior-year period, primarily benefiting from gains on equity securities and the G4S indemnification asset adjustment[245](index=245&type=chunk) - Interest and other nonoperating income (expense) for the first nine months of 2021 was an expense of **$1.6 million**, a significant improvement from the **$31.4 million** expense in the prior-year period, primarily benefiting from gains on equity securities, the G4S indemnification asset adjustment, and non-income tax credit interest received by Brazilian operations[245](index=245&type=chunk) [Income Taxes and Noncontrolling Interests](index=61&type=section&id=Income%20Taxes%20and%20Noncontrolling%20Interests) This section provides the company's income tax provision and effective tax rate from continuing operations, explaining factors influencing effective tax rate fluctuations, and analyzes changes in net income attributable to noncontrolling interests, primarily due to the G4S acquisition Income Tax Provision and Effective Tax Rate from Continuing Operations | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | | :------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Income Tax Provision (Millions USD) | 22.9 | 58.9 | 59.2 | 3.5 | | Effective Tax Rate | 49.9% | 161.4% | 47.5% | (3,500.0)% | - The effective tax rate can fluctuate significantly due to changes in pre-tax earnings, permanent book-tax differences, changes in the amount and geographic distribution of anticipated earnings, legislative changes, changes in valuation allowances, or accruals for contingent matters[248](index=248&type=chunk) Net Income Attributable to Noncontrolling Interests (Millions USD) | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Change % | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Change % | | :----------------------- | :------------------ | :------------------ | :--------- | :------------------ | :------------------ | :--------- | | Net Income Attributable to Noncontrolling Interests | 4.0 | 1.4 | Unfavorable | 9.7 | 4.7 | Unfavorable | - Net income attributable to noncontrolling interests increased in the third quarter and first nine months of 2021, primarily due to the G4S acquisitions completed in the third quarter of 2020 and February 2021[249](index=249&type=chunk) [Non-GAAP Results Reconciled to GAAP](index=62&type=section&id=Non-GAAP%20Results%20Reconciled%20to%20GAAP) This section provides detailed reconciliations of non-GAAP financial measures to their corresponding GAAP measures, aiming to offer supplemental comparisons of operating performance by excluding certain revenue and expense items not reflective of core operations, including retirement plans, restructuring, acquisitions and dispositions, Argentina highly inflationary impact, Chile antitrust matter, internal losses, and reporting compliance costs - Non-GAAP results aim to provide supplemental comparisons of operating performance by excluding certain revenue and expense items not reflective of core operations; these unallocated items include retirement plans, restructuring, acquisitions and dispositions, Argentina highly inflationary impact, Chile antitrust matter, internal losses, and reporting compliance costs[250](index=250&type=chunk)[251](index=251&type=chunk) Non-GAAP to GAAP Effective Income Tax Rate Reconciliation (Nine Months Ended September 30, 2021, Millions USD) | Metric | Pre-Tax Income | Income Tax | Effective Tax Rate | | :----------------------- | :------- | :----- | :------- | | GAAP | 124.6 | 59.2 | 47.5% | | Retirement Plans | 20.3 | 4.9 | | | Restructuring | 35.7 | 9.2 | | | Acquisitions and Dispositions | 52.6 | 3.4 | | | Argentina Highly Inflationary Impact | 8.8 | (0.9) | | | Chile Antitrust Matter | 9.5 | — | | | Internal Losses | (2.4) | (0.8) | | | Reporting Compliance | — | — | | | Income Tax Rate Adjustment | — | 7.7 | | | **Non-GAAP** | **249.1** | **82.7** | **33.2%** | Non-GAAP to GAAP Operating Profit Reconciliation (Millions USD) | Metric | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | | :----------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | GAAP Operating Profit | 74.2 | 76.4 | 209.2 | 101.6 | | Restructuring | 14.0 | 5.1 | 35.7 | 49.7 | | Acquisitions and Dispositions | 16.6 | 16.2 | 55.8 | 66.2 | | Argentina Highly Inflationary Impact | 2.3 | 3.2 | 8.8 | 8.4 | | Chile Antitrust Matter | 9.5 | — | 9.5 | — | | Internal Losses | (0.7) | (0.9) | (2.4) | 9.9 | | Reporting Compliance | — | (0.1) | — | 0.4 | | **Non-GAAP Operating Profit** | **115.9** | **99.9** | **316.6** | **236.2** | Non-GAAP to GAAP Net Income from Continuing Operations Attributable to Brink's Reconciliation (Millions USD) | Metr

The Brink's Company (NYSE:BCO) Q3 2021 Earnings Conference Call October 27, 2021 8:30 AM ET Company Participants Edward Cunningham - Vice President, Investor Relations & Corporate Communications Doug Pertz - President, Chief Executive Officer & Director Ronald Domanico - Executive Vice President & Chief Financial Officer Mark Eubanks - Chief Operating Officer Conference Call Participants George Tong - Goldman Sachs Group Tobey Sommer - Truist Securities Samuel England - Berenberg Wayne Archambo - Monarch Pa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $1.00 per share BCO New York Stock Exchange FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Co ...