THE BRINK’S COMPANY | ||
(Exact name of registrant as specified in its charter) |
Virginia | 54-1317776 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
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 |
(In millions, except for per share amounts) | March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | ||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 283.2 | 343.4 | $ | 304.9 | 343.4 | ||||||
Restricted cash | 97.1 | 136.1 | 105.8 | 136.1 | ||||||||
Accounts receivable, net | 641.0 | 599.5 | 678.3 | 599.5 | ||||||||
Prepaid expenses and other | 133.0 | 127.5 | 155.6 | 127.5 | ||||||||
Total current assets | 1,154.3 | 1,206.5 | 1,244.6 | 1,206.5 | ||||||||
Right-of-use assets, net | 292.2 | — | 280.8 | — | ||||||||
Property and equipment, net | 698.1 | 699.4 | 712.7 | 699.4 | ||||||||
Goodwill | 751.7 | 678.6 | 782.5 | 678.6 | ||||||||
Other intangibles | 266.6 | 228.9 | 279.5 | 228.9 | ||||||||
Deferred income taxes | 235.6 | 236.5 | 239.0 | 236.5 | ||||||||
Other | 203.5 | 186.1 | 193.3 | 186.1 | ||||||||
Total assets | $ | 3,602.0 | 3,236.0 | $ | 3,732.4 | 3,236.0 | ||||||
LIABILITIES AND EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Short-term borrowings | $ | 23.4 | 28.9 | $ | 29.2 | 28.9 | ||||||
Current maturities of long-term debt | 69.5 | 53.5 | 72.6 | 53.5 | ||||||||
Accounts payable | 147.0 | 174.6 | 165.7 | 174.6 | ||||||||
Accrued liabilities | 553.6 | 502.1 | 561.4 | 502.1 | ||||||||
Restricted cash held for customers | 51.9 | 90.3 | 59.9 | 90.3 | ||||||||
Total current liabilities | 845.4 | 849.4 | 888.8 | 849.4 | ||||||||
Long-term debt | 1,596.5 | 1,471.6 | 1,657.7 | 1,471.6 | ||||||||
Accrued pension costs | 191.9 | 196.9 | 189.7 | 196.9 | ||||||||
Retirement benefits other than pensions | 365.7 | 366.1 | 365.5 | 366.1 | ||||||||
Lease liabilities | 237.6 | — | 229.9 | — | ||||||||
Deferred income taxes | 16.5 | 16.7 | 16.5 | 16.7 | ||||||||
Other | 169.1 | 168.7 | 174.6 | 168.7 | ||||||||
Total liabilities | 3,422.7 | 3,069.4 | 3,522.7 | 3,069.4 | ||||||||
Commitments and contingent liabilities (notes 4, 8 and 14) | ||||||||||||
Equity: | ||||||||||||
The Brink's Company ("Brink's") shareholders: | ||||||||||||
Common stock, par value $1 per share: | ||||||||||||
Shares authorized: 100.0 | ||||||||||||
Shares issued and outstanding: 2019 - 49.9; 2018 - 49.7 | 49.9 | 49.7 | ||||||||||
Shares issued and outstanding: 2019 - 50.0; 2018 - 49.7 | 50.0 | 49.7 | ||||||||||
Capital in excess of par value | 630.9 | 628.2 | 647.7 | 628.2 | ||||||||
Retained earnings | 464.7 | 429.1 | 469.7 | 429.1 | ||||||||
Accumulated other comprehensive loss | (980.2 | ) | (953.3 | ) | (973.2 | ) | (953.3 | ) | ||||
Brink’s shareholders | 165.3 | 153.7 | 194.2 | 153.7 | ||||||||
Noncontrolling interests | 14.0 | 12.9 | 15.5 | 12.9 | ||||||||
Total equity | 179.3 | 166.6 | 209.7 | 166.6 | ||||||||
Total liabilities and equity | $ | 3,602.0 | 3,236.0 | $ | 3,732.4 | 3,236.0 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
(In millions, except for per share amounts) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues | $ | 905.0 | 879.1 | $ | 914.0 | 849.7 | $ | 1,819.0 | 1,728.8 | ||||||||||
Costs and expenses: | |||||||||||||||||||
Cost of revenues | 702.7 | 693.6 | 708.5 | 666.8 | 1,411.2 | 1,360.4 | |||||||||||||
Selling, general and administrative expenses | 141.7 | 123.1 | 154.6 | 119.9 | 296.3 | 243.0 | |||||||||||||
Total costs and expenses | 844.4 | 816.7 | 863.1 | 786.7 | 1,707.5 | 1,603.4 | |||||||||||||
Other operating income (expense) | (2.2 | ) | 2.4 | 1.7 | (1.3 | ) | (0.5 | ) | 1.1 | ||||||||||
Operating profit | 58.4 | 64.8 | 52.6 | 61.7 | 111.0 | 126.5 | |||||||||||||
Interest expense | (23.0 | ) | (15.0 | ) | (22.7 | ) | (15.8 | ) | (45.7 | ) | (30.8 | ) | |||||||
Loss on deconsolidation of Venezuela operations | — | (126.7 | ) | — | (126.7 | ) | |||||||||||||
Interest and other nonoperating income (expense) | (11.2 | ) | (13.1 | ) | (3.1 | ) | (8.1 | ) | (14.3 | ) | (21.2 | ) | |||||||
Income from continuing operations before tax | 24.2 | 36.7 | |||||||||||||||||
Income (loss) from continuing operations before tax | 26.8 | (88.9 | ) | 51.0 | (52.2 | ) | |||||||||||||
Provision for income taxes | 9.7 | 11.4 | 12.7 | 18.6 | 22.4 | 30.0 | |||||||||||||
Income from continuing operations | 14.5 | 25.3 | |||||||||||||||||
Income (loss) from continuing operations | 14.1 | (107.5 | ) | 28.6 | (82.2 | ) | |||||||||||||
Income from discontinued operations, net of tax | — | 0.2 | |||||||||||||||||
Income (loss) from discontinued operations, net of tax | (0.1 | ) | (0.1 | ) | (0.1 | ) | 0.1 | ||||||||||||
Net income | 14.5 | 25.5 | |||||||||||||||||
Net income (loss) | 14.0 | (107.6 | ) | 28.5 | (82.1 | ) | |||||||||||||
Less net income attributable to noncontrolling interests | 0.8 | 3.2 | 1.5 | 0.3 | 2.3 | 3.5 | |||||||||||||
Net income attributable to Brink’s | 13.7 | 22.3 | |||||||||||||||||
Net income (loss) attributable to Brink’s | 12.5 | (107.9 | ) | 26.2 | (85.6 | ) | |||||||||||||
Amounts attributable to Brink’s | |||||||||||||||||||
Continuing operations | 13.7 | 22.1 | 12.6 | (107.8 | ) | 26.3 | (85.7 | ) | |||||||||||
Discontinued operations | — | 0.2 | (0.1 | ) | (0.1 | ) | (0.1 | ) | 0.1 | ||||||||||
Net income attributable to Brink’s | $ | 13.7 | 22.3 | ||||||||||||||||
Net income (loss) attributable to Brink’s | $ | 12.5 | (107.9 | ) | $ | 26.2 | (85.6 | ) | |||||||||||
Income per share attributable to Brink’s common shareholders(a): | |||||||||||||||||||
Income (loss) per share attributable to Brink’s common shareholders(a): | |||||||||||||||||||
Basic: | |||||||||||||||||||
Continuing operations | $ | 0.27 | 0.43 | $ | 0.25 | (2.11 | ) | $ | 0.53 | (1.68 | ) | ||||||||
Discontinued operations | — | — | — | — | — | — | |||||||||||||
Net income | $ | 0.27 | 0.44 | ||||||||||||||||
Net income (loss) | $ | 0.25 | (2.11 | ) | $ | 0.52 | (1.68 | ) | |||||||||||
Diluted: | |||||||||||||||||||
Continuing operations | $ | 0.27 | 0.42 | $ | 0.25 | (2.11 | ) | $ | 0.52 | (1.68 | ) | ||||||||
Discontinued operations | — | — | — | — | — | — | |||||||||||||
Net income | $ | 0.27 | 0.43 | ||||||||||||||||
Net income (loss) | $ | 0.25 | (2.11 | ) | $ | 0.51 | (1.68 | ) | |||||||||||
Weighted-average shares | |||||||||||||||||||
Basic | 50.0 | 50.9 | 50.2 | 51.2 | 50.1 | 51.0 | |||||||||||||
Diluted | 50.9 | 52.1 | 50.9 | 51.2 | 50.9 | 51.0 | |||||||||||||
Cash dividends paid per common share | $ | 0.15 | 0.15 | $ | 0.15 | 0.15 | $ | 0.30 | 0.30 |
Three Months Ended March 31, | ||||||
(In millions) | 2019 | 2018 | ||||
Net income | $ | 14.5 | 25.5 | |||
Benefit plan adjustments: | ||||||
Benefit plan actuarial gains | 11.3 | 14.8 | ||||
Benefit plan prior service costs | (1.3 | ) | (0.8 | ) | ||
Total benefit plan adjustments | 10.0 | 14.0 | ||||
Foreign currency translation adjustments | 0.6 | 1.0 | ||||
Gains (losses) on cash flow hedges | (7.9 | ) | 0.4 | |||
Other comprehensive income before tax | 2.7 | 15.4 | ||||
Provision for income taxes | 0.5 | 3.2 | ||||
Other comprehensive income | 2.2 | 12.2 | ||||
Comprehensive income | 16.7 | 37.7 | ||||
Less comprehensive income attributable to noncontrolling interests | 1.1 | 4.3 | ||||
Comprehensive income attributable to Brink's | $ | 15.6 | 33.4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | |||||||||
Net income (loss) | $ | 14.0 | (107.6 | ) | $ | 28.5 | (82.1 | ) | |||||
Benefit plan adjustments: | |||||||||||||
Benefit plan actuarial gains | 9.0 | 22.9 | 20.3 | 37.7 | |||||||||
Benefit plan prior service credits (costs) | (1.2 | ) | 1.1 | (2.5 | ) | 0.3 | |||||||
Deferred profit sharing | 0.1 | — | 0.1 | — | |||||||||
Total benefit plan adjustments | 7.9 | 24.0 | 17.9 | 38.0 | |||||||||
Foreign currency translation adjustments | 9.1 | (31.8 | ) | 9.7 | (30.8 | ) | |||||||
Gains (losses) on cash flow hedges | (10.6 | ) | 0.2 | (18.5 | ) | 0.6 | |||||||
Other comprehensive income (loss) before tax | 6.4 | (7.6 | ) | 9.1 | 7.8 | ||||||||
Provision (benefit) for income taxes | (0.7 | ) | 3.8 | (0.2 | ) | 7.0 | |||||||
Other comprehensive income (loss) | 7.1 | (11.4 | ) | 9.3 | 0.8 | ||||||||
Comprehensive income (loss) | 21.1 | (119.0 | ) | 37.8 | (81.3 | ) | |||||||
Less comprehensive income (loss) attributable to noncontrolling interests | 1.6 | (0.7 | ) | 2.7 | 3.6 | ||||||||
Comprehensive income (loss) attributable to Brink's | $ | 19.5 | (118.3 | ) | $ | 35.1 | (84.9 | ) |
Six Months ended June 30, 2019 | |||||||||||||||||||||
(In millions) | Shares | Common Stock | Capital in Excess of Par Value | Retained Earnings | AOCI* | Noncontrolling Interests | Total | ||||||||||||||
Balance as of December 31, 2018 | 49.7 | $ | 49.7 | 628.2 | 429.1 | (953.3 | ) | 12.9 | 166.6 | ||||||||||||
Cumulative effect of change in accounting principle(a) | — | — | — | 28.8 | (28.8 | ) | — | — | |||||||||||||
Net income | — | — | — | 13.7 | — | 0.8 | 14.5 | ||||||||||||||
Other comprehensive income | — | — | — | — | 1.9 | 0.3 | 2.2 | ||||||||||||||
Shares repurchased | — | — | (0.5 | ) | 0.5 | — | — | — | |||||||||||||
Dividends to: | |||||||||||||||||||||
Brink’s common shareholders ($0.15 per share) | — | — | — | (7.4 | ) | — | — | (7.4 | ) | ||||||||||||
Share-based compensation: | |||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||
Compensation expense | — | — | 9.4 | — | — | — | 9.4 | ||||||||||||||
Other share-based benefit transactions | 0.2 | 0.2 | (6.2 | ) | — | — | — | (6.0 | ) | ||||||||||||
Balance as of March 31, 2019 | 49.9 | $ | 49.9 | 630.9 | 464.7 | (980.2 | ) | 14.0 | 179.3 | ||||||||||||
Net income | — | — | — | 12.5 | — | 1.5 | 14.0 | ||||||||||||||
Other comprehensive income | — | — | — | — | 7.0 | 0.1 | 7.1 | ||||||||||||||
Dividends to: | |||||||||||||||||||||
Brink’s common shareholders ($0.15 per share) | — | — | — | (7.5 | ) | — | — | (7.5 | ) | ||||||||||||
Noncontrolling interests | — | — | — | — | — | (0.2 | ) | (0.2 | ) | ||||||||||||
Share-based compensation: | |||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||
Compensation expense | — | — | 16.7 | — | — | — | 16.7 | ||||||||||||||
Other share-based benefit transactions | 0.1 | 0.1 | 0.1 | — | — | — | 0.2 | ||||||||||||||
Capital contributions from noncontrolling interest | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||
Balance as of June 30, 2019 | 50.0 | $ | 50.0 | 647.7 | 469.7 | (973.2 | ) | 15.5 | 209.7 |
Three-Months ended March 31, 2019 | |||||||||||||||||||||
(In millions) | Shares | Common Stock | Capital in Excess of Par Value | Retained Earnings | AOCI* | Noncontrolling Interests | Total | ||||||||||||||
Balance as of December 31, 2018 | 49.7 | $ | 49.7 | 628.2 | 429.1 | (953.3 | ) | 12.9 | 166.6 | ||||||||||||
Cumulative effect of change in accounting principle(a) | — | — | — | 28.8 | (28.8 | ) | — | — | |||||||||||||
Net income | — | — | — | 13.7 | — | 0.8 | 14.5 | ||||||||||||||
Other comprehensive income | — | — | — | — | 1.9 | 0.3 | 2.2 | ||||||||||||||
Shares repurchased | — | — | (0.5 | ) | 0.5 | — | — | — | |||||||||||||
Dividends to: | |||||||||||||||||||||
Brink’s common shareholders ($0.15 per share) | — | — | — | (7.4 | ) | — | — | (7.4 | ) | ||||||||||||
Share-based compensation: | |||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||
Compensation expense | — | — | 9.4 | — | — | — | 9.4 | ||||||||||||||
Other share-based benefit transactions | 0.2 | 0.2 | (6.2 | ) | — | — | — | (6.0 | ) | ||||||||||||
Balance as of March 31, 2019 | 49.9 | $ | 49.9 | 630.9 | 464.7 | (980.2 | ) | 14.0 | 179.3 |
Three-Months ended March 31, 2018 | |||||||||||||||||||||
(In millions) | Shares | Common Stock | Capital in Excess of Par Value | Retained Earnings | AOCI* | Noncontrolling Interests | Total | ||||||||||||||
Balance as of December 31, 2017 | 50.5 | $ | 50.5 | 628.6 | 564.9 | (926.6 | ) | 20.8 | 338.2 | ||||||||||||
Cumulative effect of change in accounting principle(b) | — | — | — | 3.3 | (1.1 | ) | — | 2.2 | |||||||||||||
Net income | — | — | — | 22.3 | — | 3.2 | 25.5 | ||||||||||||||
Other comprehensive income | — | — | — | — | 11.1 | 1.1 | 12.2 | ||||||||||||||
Dividends to: | |||||||||||||||||||||
Brink’s common shareholders ($0.15 per share) | — | — | — | (7.6 | ) | — | — | (7.6 | ) | ||||||||||||
Noncontrolling interests | — | — | — | — | — | (0.7 | ) | (0.7 | ) | ||||||||||||
Share-based compensation: | |||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||
Compensation expense | — | — | 6.8 | — | — | — | 6.8 | ||||||||||||||
Other share-based benefit transactions | 0.4 | 0.4 | (10.5 | ) | — | — | — | (10.1 | ) | ||||||||||||
Balance as of March 31, 2018 | 50.9 | $ | 50.9 | 624.9 | 582.9 | (916.6 | ) | 24.4 | 366.5 |
(a) | Effective January 1, 2019, we adopted the provisions of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. We recognized a cumulative effect adjustment to January 1, 2019 retained earnings as a result of adopting this standard. See Note 1 for further details. |
Six Months ended June 30, 2018 | |||||||||||||||||||||
(In millions) | Shares | Common Stock | Capital in Excess of Par Value | Retained Earnings | AOCI* | Noncontrolling Interests | Total | ||||||||||||||
Balance as of December 31, 2017 | 50.5 | $ | 50.5 | 628.6 | 564.9 | (926.6 | ) | 20.8 | 338.2 | ||||||||||||
Cumulative effect of change in accounting principle(a) | — | — | — | 3.3 | (1.1 | ) | — | 2.2 | |||||||||||||
Net income | — | — | — | 22.3 | — | 3.2 | 25.5 | ||||||||||||||
Other comprehensive income | — | — | — | — | 11.1 | 1.1 | 12.2 | ||||||||||||||
Dividends to: | |||||||||||||||||||||
Brink’s common shareholders ($0.15 per share) | — | — | — | (7.6 | ) | — | — | (7.6 | ) | ||||||||||||
Noncontrolling interests | — | — | — | — | — | (0.7 | ) | (0.7 | ) | ||||||||||||
Share-based compensation: | |||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||
Compensation expense | — | — | 6.8 | — | — | — | 6.8 | ||||||||||||||
Other share-based benefit transactions | 0.4 | 0.4 | (10.5 | ) | — | — | — | (10.1 | ) | ||||||||||||
Balance as of March 31, 2018 | 50.9 | $ | 50.9 | 624.9 | 582.9 | (916.6 | ) | 24.4 | 366.5 | ||||||||||||
Net income (loss) | — | — | — | (107.9 | ) | — | 0.3 | (107.6 | ) | ||||||||||||
Other comprehensive loss | — | — | — | — | (10.4 | ) | (1.0 | ) | (11.4 | ) | |||||||||||
Dividends to: | |||||||||||||||||||||
Brink’s common shareholders ($0.15 per share) | — | — | — | (7.6 | ) | — | — | (7.6 | ) | ||||||||||||
Noncontrolling interests | — | — | — | — | — | (1.2 | ) | (1.2 | ) | ||||||||||||
Share-based compensation: | |||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||
Compensation expense | — | — | 5.7 | — | — | — | 5.7 | ||||||||||||||
Consideration from exercise of stock options | — | — | 0.8 | — | — | — | 0.8 | ||||||||||||||
Other share-based benefit transactions | 0.1 | 0.1 | 0.2 | — | — | — | 0.3 | ||||||||||||||
Dispositions of noncontrolling interests | — | — | — | — | — | (0.4 | ) | (0.4 | ) | ||||||||||||
Balance as of June 30, 2018 | 51.0 | $ | 51.0 | 631.6 | 467.4 | (927.0 | ) | 22.1 | 245.1 |
Effective January 1, 2018, we adopted the provisions of ASU 2014-09, Revenue From Contracts with Customers, ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, and ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. We recognized a cumulative effect adjustment to January 1, 2018 retained earnings as a result of adopting each of these standards. See Note 1 for further details of the impact of each standard. |
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | ||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 14.5 | 25.5 | |||||||||
Net income (loss) | $ | 28.5 | (82.1 | ) | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Income from discontinued operations, net of tax | — | (0.2 | ) | |||||||||
(Income) loss from discontinued operations, net of tax | 0.1 | (0.1 | ) | |||||||||
Depreciation and amortization | 47.8 | 38.8 | 96.6 | 77.9 | ||||||||
Share-based compensation expense | 9.4 | 6.8 | 26.1 | 12.5 | ||||||||
Deferred income taxes | 1.1 | (4.1 | ) | (1.0 | ) | (9.5 | ) | |||||
Gains on sale of property, equipment and marketable securities | (0.2 | ) | (0.5 | ) | (1.1 | ) | (2.0 | ) | ||||
Gain on business dispositions | — | (10.3 | ) | |||||||||
Loss on deconsolidation of Venezuela operations | — | 126.7 | ||||||||||
Impairment losses | 1.2 | 1.8 | 1.6 | 2.7 | ||||||||
Retirement benefit funding (more) less than expense: | ||||||||||||
Retirement benefit funding less than expense: | ||||||||||||
Pension | 0.3 | 2.8 | 1.9 | 5.1 | ||||||||
Other than pension | 4.5 | 5.2 | 7.1 | 8.5 | ||||||||
Remeasurement losses (gains) due to Argentina and Venezuela currency devaluations | 3.9 | (2.8 | ) | 3.4 | (2.2 | ) | ||||||
Other operating | 3.2 | 3.1 | (4.7 | ) | 4.8 | |||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||||||
Accounts receivable and income taxes receivable | (36.8 | ) | (32.7 | ) | (56.3 | ) | (66.7 | ) | ||||
Accounts payable, income taxes payable and accrued liabilities | (47.9 | ) | (13.6 | ) | (29.8 | ) | 42.0 | |||||
Restricted cash held for customers | (36.8 | ) | 44.0 | (29.5 | ) | 4.4 | ||||||
Customer obligations | 11.3 | (0.5 | ) | 7.0 | 5.7 | |||||||
Prepaid and other current assets | (10.2 | ) | (15.7 | ) | (16.3 | ) | (15.8 | ) | ||||
Other | (3.3 | ) | (1.1 | ) | (9.7 | ) | 7.5 | |||||
Net cash (used) provided by operating activities | (38.0 | ) | 56.8 | |||||||||
Net cash provided by operating activities | 23.9 | 109.1 | ||||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (35.2 | ) | (36.7 | ) | (73.1 | ) | (73.3 | ) | ||||
Acquisitions, net of cash acquired | (129.9 | ) | — | (167.0 | ) | — | ||||||
Dispositions, net of cash disposed | — | 9.6 | ||||||||||
Marketable securities: | ||||||||||||
Purchases | (1.1 | ) | (13.5 | ) | (2.2 | ) | (50.1 | ) | ||||
Sales | 0.4 | 0.5 | 0.8 | 5.5 | ||||||||
Cash proceeds from sale of property and equipment | 1.6 | 1.1 | 1.9 | 1.8 | ||||||||
Other | (3.1 | ) | (0.9 | ) | ||||||||
Net cash used by investing activities | (164.2 | ) | (48.6 | ) | (242.7 | ) | (107.4 | ) | ||||
Cash flows from financing activities: | ||||||||||||
Borrowings (repayments) of debt: | ||||||||||||
Short-term borrowings | (5.5 | ) | 16.1 | 0.1 | 10.5 | |||||||
Cash supply chain customer debt | — | 0.9 | — | (11.7 | ) | |||||||
Long-term revolving credit facilities: | ||||||||||||
Borrowings | 310.2 | — | 525.9 | — | ||||||||
Repayments | (502.9 | ) | — | (656.5 | ) | — | ||||||
Other long-term debt: | ||||||||||||
Borrowings | 333.2 | 1.6 | 334.9 | 1.8 | ||||||||
Repayments | (8.0 | ) | (13.3 | ) | (25.4 | ) | (27.7 | ) | ||||
Payment of acquisition-related obligation | (1.5 | ) | (0.1 | ) | (1.5 | ) | — | |||||
Debt financing costs | (3.9 | ) | — | (4.0 | ) | — | ||||||
Dividends to: | ||||||||||||
Shareholders of Brink’s | (7.4 | ) | (7.6 | ) | (14.9 | ) | (15.2 | ) | ||||
Noncontrolling interests in subsidiaries | — | (0.7 | ) | (0.2 | ) | (1.9 | ) | |||||
Proceeds from exercise of stock options | — | 0.8 | ||||||||||
Tax withholdings associated with share-based compensation | (7.3 | ) | (11.2 | ) | (7.2 | ) | (11.3 | ) | ||||
Other | (0.3 | ) | 0.5 | (1.7 | ) | 0.2 | ||||||
Net cash provided (used) by financing activities | 106.6 | (13.8 | ) | 149.5 | (54.5 | ) | ||||||
Effect of exchange rate changes on cash | (3.6 | ) | 0.3 | 0.5 | (24.0 | ) | ||||||
Cash, cash equivalents and restricted cash: | ||||||||||||
Increase (decrease) | (99.2 | ) | (5.3 | ) | ||||||||
Decrease | (68.8 | ) | (76.8 | ) | ||||||||
Balance at beginning of period | 479.5 | 726.9 | 479.5 | 726.9 | ||||||||
Balance at end of period | $ | 380.3 | 721.6 | $ | 410.7 | 650.1 |
(In millions) | Core Services | High-Value Services | Other Security Services | Total | ||||||||
Three months ended June 30, 2019 | ||||||||||||
Reportable Segments: | ||||||||||||
North America | $ | 279.8 | 162.7 | — | 442.5 | |||||||
South America | 118.8 | 104.0 | 2.4 | 225.2 | ||||||||
Rest of World | 88.1 | 124.4 | 34.1 | 246.6 | ||||||||
Total reportable segments | 486.7 | 391.1 | 36.5 | 914.3 | ||||||||
Not Allocated to Segments: | ||||||||||||
Acquisitions and dispositions | — | (0.3 | ) | — | (0.3 | ) | ||||||
Total | $ | 486.7 | 390.8 | 36.5 | 914.0 | |||||||
Three months ended June 30, 2018 | ||||||||||||
Reportable Segments: | ||||||||||||
North America | $ | 189.8 | 134.2 | — | 324.0 | |||||||
South America | 113.9 | 116.2 | 3.2 | 233.3 | ||||||||
Rest of World | 88.3 | 128.9 | 49.6 | 266.8 | ||||||||
Total reportable segments | 392.0 | 379.3 | 52.8 | 824.1 | ||||||||
Not Allocated to Segments: | ||||||||||||
Venezuela | 7.7 | 17.9 | — | 25.6 | ||||||||
Total | $ | 399.7 | 397.2 | 52.8 | 849.7 | |||||||
Six months ended June 30, 2019 | ||||||||||||
Reportable Segments: | ||||||||||||
North America | $ | 557.0 | 320.0 | — | 877.0 | |||||||
South America | 238.0 | 212.1 | 5.4 | 455.5 | ||||||||
Rest of World | 176.1 | 243.7 | 67.0 | 486.8 | ||||||||
Total reportable segments | 971.1 | 775.8 | 72.4 | 1,819.3 | ||||||||
Not Allocated to Segments: | ||||||||||||
Acquisitions and dispositions | — | (0.3 | ) | — | (0.3 | ) | ||||||
Total | $ | 971.1 | 775.5 | 72.4 | 1,819.0 | |||||||
Six months ended June 30, 2018 | ||||||||||||
Reportable Segments: | ||||||||||||
North America | $ | 379.8 | 264.3 | — | 644.1 | |||||||
South America | 239.3 | 242.7 | 6.1 | 488.1 | ||||||||
Rest of World | 181.9 | 259.3 | 104.0 | 545.2 | ||||||||
Total reportable segments | 801.0 | 766.3 | 110.1 | 1,677.4 | ||||||||
Not Allocated to Segments: | ||||||||||||
Venezuela | 18.4 | 33.0 | — | 51.4 | ||||||||
Total | $ | 819.4 | 799.3 | 110.1 | 1,728.8 |
(In millions) | Core Services | High-Value Services | Other Security Services | Total | ||||||||
Three months ended March 31, 2019 | ||||||||||||
Reportable Segments: | ||||||||||||
North America | $ | 277.2 | 157.3 | — | 434.5 | |||||||
South America | 119.2 | 108.1 | 3.0 | 230.3 | ||||||||
Rest of World | 88.0 | 119.3 | 32.9 | 240.2 | ||||||||
Total | $ | 484.4 | 384.7 | 35.9 | 905.0 | |||||||
Three months ended March 31, 2018 | ||||||||||||
Reportable Segments: | ||||||||||||
North America | $ | 190.0 | 130.1 | — | 320.1 | |||||||
South America | 125.4 | 126.5 | 2.9 | 254.8 | ||||||||
Rest of World | 93.6 | 130.4 | 54.4 | 278.4 | ||||||||
Total reportable segments | 409.0 | 387.0 | 57.3 | 853.3 | ||||||||
Not Allocated to Segments: | ||||||||||||
Venezuela | 10.7 | 15.1 | — | 25.8 | ||||||||
Total | $ | 419.7 | 402.1 | 57.3 | 879.1 |
(In millions) | Receivables | Contract Asset | Contract Liability | ||||||
Opening (January 1, 2019) | $ | 599.5 | 1.8 | 2.5 | |||||
Closing (June 30, 2019) | 678.3 | 0.9 | 8.5 | ||||||
Increase (decrease) | $ | 78.8 | (0.9 | ) | 6.0 |
(In millions) | Receivables | Contract Asset | Contract Liability | ||||||
Opening (January 1, 2019) | $ | 599.5 | 1.8 | 2.5 | |||||
Closing (March 31, 2019) | 641.0 | 1.2 | 5.4 | ||||||
Increase (decrease) | $ | 41.5 | (0.6 | ) | 2.9 |
Revenues | Operating Profit | Revenues | Operating Profit | |||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Reportable Segments: | ||||||||||||||||||||||||||
North America | $ | 434.5 | 320.1 | $ | 44.0 | 20.6 | $ | 442.5 | 324.0 | $ | 46.4 | 26.1 | ||||||||||||||
South America | 230.3 | 254.8 | 43.0 | 55.6 | 225.2 | 233.3 | 45.0 | 46.1 | ||||||||||||||||||
Rest of World | 240.2 | 278.4 | 23.8 | 25.6 | 246.6 | 266.8 | 26.2 | 26.2 | ||||||||||||||||||
Total reportable segments | 905.0 | 853.3 | 110.8 | 101.8 | 914.3 | 824.1 | 117.6 | 98.4 | ||||||||||||||||||
Reconciling Items: | ||||||||||||||||||||||||||
Corporate expenses: | ||||||||||||||||||||||||||
General, administrative and other expenses | — | — | (27.1 | ) | (31.1 | ) | — | — | (32.5 | ) | (20.9 | ) | ||||||||||||||
Foreign currency transaction gains (losses) | — | — | 0.9 | (0.5 | ) | — | — | (0.3 | ) | (1.7 | ) | |||||||||||||||
Reconciliation of segment policies to GAAP | — | — | 0.2 | 1.3 | — | — | 4.0 | 0.4 | ||||||||||||||||||
Other items not allocated to segments: | ||||||||||||||||||||||||||
Venezuela operations | — | 25.8 | — | 3.5 | — | 25.6 | — | (1.2 | ) | |||||||||||||||||
Reorganization and Restructuring | — | — | (3.5 | ) | (3.7 | ) | — | — | (10.6 | ) | (4.5 | ) | ||||||||||||||
Acquisitions and dispositions | — | — | (17.2 | ) | (6.5 | ) | (0.3 | ) | — | (22.6 | ) | (7.4 | ) | |||||||||||||
Argentina highly inflationary impact | — | — | (4.3 | ) | — | — | — | (0.1 | ) | — | ||||||||||||||||
Reporting compliance(a) | — | — | (1.4 | ) | — | — | — | (2.9 | ) | (1.4 | ) | |||||||||||||||
Total | $ | 905.0 | 879.1 | $ | 58.4 | 64.8 | $ | 914.0 | 849.7 | $ | 52.6 | 61.7 |
(a) | Costs (primarily third party expenses) related to reconstruction of an accounts receivable subledger, accounting standard implementation and material weakness mitigation. Additional information provided at page |
Revenues | Operating Profit | ||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | |||||||||
Reportable Segments: | |||||||||||||
North America | $ | 877.0 | 644.1 | $ | 90.4 | 46.7 | |||||||
South America | 455.5 | 488.1 | 88.0 | 101.7 | |||||||||
Rest of World | 486.8 | 545.2 | 50.0 | 51.8 | |||||||||
Total reportable segments | 1,819.3 | 1,677.4 | 228.4 | 200.2 | |||||||||
Reconciling Items: | |||||||||||||
Corporate expenses: | |||||||||||||
General, administrative and other expenses | — | — | (59.6 | ) | (52.0 | ) | |||||||
Foreign currency transaction gains (losses) | — | — | 0.6 | (2.2 | ) | ||||||||
Reconciliation of segment policies to GAAP | — | — | 4.2 | 1.7 | |||||||||
Other items not allocated to segments: | |||||||||||||
Venezuela operations | — | 51.4 | — | 2.3 | |||||||||
Reorganization and Restructuring | — | — | (14.1 | ) | (8.2 | ) | |||||||
Acquisitions and dispositions | (0.3 | ) | — | (39.8 | ) | (13.9 | ) | ||||||
Argentina highly inflationary impact | — | — | (4.4 | ) | — | ||||||||
Reporting compliance(a) | — | — | (4.3 | ) | (1.4 | ) | |||||||
Total | $ | 1,819.0 | 1,728.8 | $ | 111.0 | 126.5 |
(a) | Costs (primarily third party expenses) related to reconstruction of an accounts receivable subledger, accounting standard implementation and material weakness mitigation. Additional information provided at page 44. |
U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Three months ended June 30, | ||||||||||||||||||
Service cost | $ | — | — | 2.4 | 2.6 | 2.4 | 2.6 | |||||||||||
Interest cost on projected benefit obligation | 8.6 | 8.0 | 2.6 | 3.3 | 11.2 | 11.3 | ||||||||||||
Return on assets – expected | (12.7 | ) | (13.4 | ) | (2.6 | ) | (2.8 | ) | (15.3 | ) | (16.2 | ) | ||||||
Amortization of losses | 4.8 | 6.9 | 1.0 | 1.0 | 5.8 | 7.9 | ||||||||||||
Amortization of prior service cost | — | — | 0.1 | — | 0.1 | — | ||||||||||||
Settlement loss | — | — | 0.6 | 0.5 | 0.6 | 0.5 | ||||||||||||
Net periodic pension cost | $ | 0.7 | 1.5 | 4.1 | 4.6 | 4.8 | 6.1 | |||||||||||
Six months ended June 30, | ||||||||||||||||||
Service cost | $ | — | — | 4.9 | 5.6 | 4.9 | 5.6 | |||||||||||
Interest cost on projected benefit obligation | 17.1 | 16.0 | 5.2 | 7.3 | 22.3 | 23.3 | ||||||||||||
Return on assets – expected | (25.4 | ) | (26.8 | ) | (5.2 | ) | (5.7 | ) | (30.6 | ) | (32.5 | ) | ||||||
Amortization of losses | 9.8 | 14.0 | 2.0 | 2.3 | 11.8 | 16.3 | ||||||||||||
Amortization of prior service cost | — | — | 0.1 | 0.2 | 0.1 | 0.2 | ||||||||||||
Settlement loss | — | — | 0.9 | 1.0 | 0.9 | 1.0 | ||||||||||||
Net periodic pension cost | $ | 1.5 | 3.2 | 7.9 | 10.7 | 9.4 | 13.9 |
U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Three months ended March 31, | ||||||||||||||||||
Service cost | $ | — | — | 2.5 | 3.0 | 2.5 | 3.0 | |||||||||||
Interest cost on projected benefit obligation | 8.5 | 8.0 | 2.6 | 4.0 | 11.1 | 12.0 | ||||||||||||
Return on assets – expected | (12.7 | ) | (13.4 | ) | (2.6 | ) | (2.9 | ) | (15.3 | ) | (16.3 | ) | ||||||
Amortization of losses | 5.0 | 7.1 | 1.0 | 1.3 | 6.0 | 8.4 | ||||||||||||
Amortization of prior service cost | — | — | — | 0.2 | — | 0.2 | ||||||||||||
Settlement loss | — | — | 0.3 | 0.5 | 0.3 | 0.5 | ||||||||||||
Net periodic pension cost | $ | 0.8 | 1.7 | 3.8 | 6.1 | 4.6 | 7.8 |
UMWA Plans | Black Lung and Other Plans | Total | ||||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Three months ended June 30, | ||||||||||||||||||
Service cost | $ | — | — | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||
Interest cost on accumulated postretirement benefit obligations | 4.1 | 4.2 | 0.9 | 0.9 | 5.0 | 5.1 | ||||||||||||
Return on assets – expected | (3.3 | ) | (4.2 | ) | — | — | (3.3 | ) | (4.2 | ) | ||||||||
Amortization of losses | 3.8 | 5.0 | 1.2 | 1.5 | 5.0 | 6.5 | ||||||||||||
Amortization of prior service (credit) cost | (1.2 | ) | (1.2 | ) | (0.1 | ) | 0.3 | (1.3 | ) | (0.9 | ) | |||||||
Net periodic postretirement cost | $ | 3.4 | 3.8 | 2.1 | 2.8 | 5.5 | 6.6 | |||||||||||
Six months ended June 30, | ||||||||||||||||||
Service cost | $ | — | — | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||
Interest cost on accumulated postretirement benefit obligations | 9.1 | 8.7 | 1.8 | 1.6 | 10.9 | 10.3 | ||||||||||||
Return on assets – expected | (6.6 | ) | (8.4 | ) | — | — | (6.6 | ) | (8.4 | ) | ||||||||
Amortization of losses | 8.9 | 10.5 | 2.3 | 2.7 | 11.2 | 13.2 | ||||||||||||
Amortization of prior service (credit) cost | (2.3 | ) | (2.3 | ) | (0.2 | ) | 0.6 | (2.5 | ) | (1.7 | ) | |||||||
Net periodic postretirement cost | $ | 9.1 | 8.5 | 4.0 | 5.0 | 13.1 | 13.5 |
UMWA Plans | Black Lung and Other Plans | Total | ||||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Three months ended March 31, | ||||||||||||||||||
Interest cost on accumulated postretirement benefit obligations | $ | 5.0 | 4.5 | 0.9 | 0.7 | 5.9 | 5.2 | |||||||||||
Return on assets – expected | (3.3 | ) | (4.2 | ) | — | — | (3.3 | ) | (4.2 | ) | ||||||||
Amortization of losses | 5.1 | 5.5 | 1.1 | 1.2 | 6.2 | 6.7 | ||||||||||||
Amortization of prior service (credit) cost | (1.1 | ) | (1.1 | ) | (0.1 | ) | 0.3 | (1.2 | ) | (0.8 | ) | |||||||
Net periodic postretirement cost | $ | 5.7 | 4.7 | 1.9 | 2.2 | 7.6 | 6.9 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Continuing operations | |||||||||||||
Provision for income taxes (in millions) | $ | 12.7 | 18.6 | $ | 22.4 | 30.0 | |||||||
Effective tax rate | 47.4 | % | (20.9 | )% | 43.9 | % | (57.5 | %) |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
Continuing operations | ||||||
Provision for income taxes (in millions) | $ | 9.7 | 11.4 | |||
Effective tax rate | 40.1 | % | 31.1 | % |
(In millions) | Estimated Fair Value at Acquisition Date | Estimated Fair Value at Acquisition Date | ||||
Fair value of purchase consideration | ||||||
Cash paid through March 31, 2019 | $ | 133.1 | ||||
Cash paid through June 30, 2019 | $ | 133.1 | ||||
Fair value of future payments to sellers | 2.6 | |||||
Indemnification asset | (1.9 | ) | (1.9 | ) | ||
Fair value of purchase consideration | $ | 131.2 | $ | 133.8 | ||
Fair value of net assets acquired(a) | ||||||
Cash | $ | 1.4 | $ | 1.4 | ||
Accounts receivable | 8.2 | 8.2 | ||||
Other current assets | 0.4 | 0.5 | ||||
Property and equipment, net | 3.7 | 3.7 | ||||
Intangible assets(b) | 47.9 | 47.9 | ||||
Goodwill(c) | 80.4 | 84.1 | ||||
Other noncurrent assets | 5.1 | 5.3 | ||||
Current liabilities | (9.6 | ) | (9.6 | ) | ||
Noncurrent liabilities | (6.3 | ) | (7.7 | ) | ||
Fair value of net assets acquired | $ | 131.2 | $ | 133.8 |
(a) | Final allocation will be determined once the valuation is complete. |
(b) | Intangible assets are composed of customer relationships ($46 million fair value and 11 year amortization period), trade name ($1 million fair value and 1 year amortization period), and non-compete agreement ($1 million fair value and 5 year amortization period). |
(c) | Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating Rodoban’s operations with our existing Brink’s Brazil operations. All of the goodwill has been assigned to the Brazil reporting unit and is expected to be deductible for tax purposes. |
(In millions) | Estimated Fair Value at Acquisition Date | Estimated Fair Value at Acquisition Date | ||||
Fair value of purchase consideration | ||||||
Cash paid through March 31, 2019 | $ | 546.8 | ||||
Cash paid through June 30, 2019 | $ | 546.8 | ||||
Fair value of purchase consideration | $ | 546.8 | $ | 546.8 | ||
Fair value of net assets acquired(a) | ||||||
Cash | $ | 25.8 | $ | 25.8 | ||
Accounts receivable | 31.9 | 31.9 | ||||
Other current assets | 11.7 | 11.7 | ||||
Property and equipment, net | 57.0 | 57.4 | ||||
Intangible assets(b) | 162.0 | 162.0 | ||||
Goodwill(c) | 307.1 | 306.7 | ||||
Other noncurrent assets | 21.1 | 21.1 | ||||
Current liabilities | (29.7 | ) | (29.7 | ) | ||
Noncurrent liabilities | (40.1 | ) | (40.1 | ) | ||
Fair value of net assets acquired | $ | 546.8 | $ | 546.8 |
(a) | Final allocation will be determined once the valuation is complete. |
(b) | Intangible assets are composed of customer relationships ($148 million fair value and 15 year amortization period) and rights related to the trade name ($14 million fair value and 8 year amortization period). |
(c) | Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating Dunbar’s operations with our existing Brink’s U.S. operations. All of the goodwill has been assigned to the U.S. reporting unit and is expected to be deductible for tax purposes. |
(In millions) | Estimated Fair Value at Acquisition Date | ||
Fair value of purchase consideration | |||
Cash paid through June 30, 2019 | $ | 39.0 | |
Contingent consideration | 1.6 | ||
Indemnification asset | (0.3 | ) | |
Fair value of purchase consideration | $ | 40.3 | |
Fair value of net assets acquired(a) | |||
Cash | $ | 5.3 | |
Accounts receivable | 1.9 | ||
Property and equipment, net | 2.3 | ||
Intangible assets(a) | 15.9 | ||
Goodwill(b) | 23.3 | ||
Other current and noncurrent assets | 1.0 | ||
Current liabilities | (7.6 | ) | |
Noncurrent liabilities | (1.8 | ) | |
Fair value of net assets acquired | $ | 40.3 |
(a) | Intangible assets are composed of developed technology, customer relationships and trade names. Final allocation will be determined after all valuations have been completed. |
(b) | Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating these acquired operations into our existing operations. The goodwill from these acquisitions have been assigned to the following reporting units: BI (U.S.) and COMEF (Brazil). We expect goodwill related to BI to be deductible for tax purposes. We do not expect goodwill related to COMEF to be deductible for tax purposes. |
(In millions) | Revenue | Net income (loss) attributable to Brink's | ||||
Actual results included in Brink's consolidated results for businesses acquired in 2019 from the date of acquisition | ||||||
Three months ended June 30, 2019 | ||||||
Rodoban | $ | 17.3 | 0.4 | |||
Other acquisitions(a) | 1.1 | 0.1 | ||||
Total | $ | 18.4 | 0.5 | |||
Six months ended June 30, 2019 | ||||||
Rodoban | $ | 36.0 | 1.1 | |||
Other acquisitions(a) | 1.1 | 0.1 | ||||
Total | $ | 37.1 | 1.2 |
(In millions) | Revenue | Net income (loss) attributable to Brink's | ||||
Actual results included in Brink's consolidated results for businesses acquired in 2018 and 2019 from the date of acquisition | ||||||
Three months ended March 31, 2019 | ||||||
Rodoban | $ | 18.6 | 0.6 | |||
Dunbar | 93.6 | 2.9 | ||||
Total | $ | 112.2 | 3.5 | |||
Three months ended March 31, 2018 | ||||||
Rodoban | $ | — | — | |||
Dunbar | — | — | ||||
Total | $ | — | — |
(a) | Includes the actual results of BI and COMEF. |
(In millions) | Revenue | Net income (loss) attributable to Brink's | Revenue | Net income (loss) attributable to Brink's | ||||||||
Pro forma results of Brink's for the three months ended March 31 | ||||||||||||
Pro forma results of Brink's for the three months ended June 30, | ||||||||||||
2019 | ||||||||||||
Brink's as reported | $ | 905.0 | 13.7 | $ | 914.0 | 12.5 | ||||||
Rodoban(a) | 0.6 | — | ||||||||||
Dunbar(a) | — | — | ||||||||||
Other acquisitions(a) | 4.2 | 0.2 | ||||||||||
Total | $ | 905.6 | 13.7 | $ | 918.2 | 12.7 | ||||||
2018 | ||||||||||||
Brink's as reported | $ | 879.1 | 22.3 | $ | 849.7 | (107.9 | ) | |||||
Rodoban(a) | 20.6 | (0.7 | ) | 18.4 | (1.2 | ) | ||||||
Dunbar(a) | 99.7 | 2.2 | 98.0 | 2.1 | ||||||||
Other acquisitions(a) | 5.5 | (0.2 | ) | |||||||||
Total | $ | 999.4 | 23.8 | $ | 971.6 | (107.2 | ) | |||||
Pro forma results of Brink's for the six months ended June 30 | ||||||||||||
2019 | ||||||||||||
Brink's as reported | $ | 1,819.0 | 26.2 | |||||||||
Rodoban(a) | 0.6 | — | ||||||||||
Other acquisitions(a) | 12.2 | 0.5 | ||||||||||
Total | $ | 1,831.8 | 26.7 | |||||||||
2018 | ||||||||||||
Brink's as reported | $ | 1,728.8 | (85.6 | ) | ||||||||
Rodoban(a) | 39.0 | (1.9 | ) | |||||||||
Dunbar(a) | 197.7 | 4.3 | ||||||||||
Other acquisitions(a) | 11.2 | (0.4 | ) | |||||||||
Total | $ | 1,976.7 | (83.6 | ) |
(a) | Represents amounts prior to acquisition by Brink's. |
Amounts Arising During the Current Period | Amounts Reclassified to Net Income (Loss) | Amounts Arising During the Current Period | Amounts Reclassified to Net Income (Loss) | |||||||||||||||||||||||||||
(In millions) | Pretax | Income Tax | Pretax | Income Tax | Total Other Comprehensive Income (Loss) | Pretax | Income Tax | Pretax | Income Tax | Total Other Comprehensive Income (Loss) | ||||||||||||||||||||
Three months ended March 31, 2019 | ||||||||||||||||||||||||||||||
Three months ended June 30, 2019 | ||||||||||||||||||||||||||||||
Amounts attributable to Brink's: | ||||||||||||||||||||||||||||||
Benefit plan adjustments | $ | (1.3 | ) | 0.2 | 11.3 | (2.7 | ) | 7.5 | $ | (2.3 | ) | 0.4 | 10.2 | (2.4 | ) | 5.9 | ||||||||||||||
Foreign currency translation adjustments | 0.3 | — | — | — | 0.3 | 9.0 | — | — | — | 9.0 | ||||||||||||||||||||
Gains (losses) on cash flow hedges | (5.3 | ) | 1.1 | (2.6 | ) | 0.9 | (5.9 | ) | (14.2 | ) | 3.9 | 3.6 | (1.2 | ) | (7.9 | ) | ||||||||||||||
(6.3 | ) | 1.3 | 8.7 | (1.8 | ) | 1.9 | (7.5 | ) | 4.3 | 13.8 | (3.6 | ) | 7.0 | |||||||||||||||||
Amounts attributable to noncontrolling interests: | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 0.3 | — | — | — | 0.3 | 0.1 | — | — | — | 0.1 | ||||||||||||||||||||
0.3 | — | — | — | 0.3 | 0.1 | — | — | — | 0.1 | |||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||
Benefit plan adjustments(a) | (1.3 | ) | 0.2 | 11.3 | (2.7 | ) | 7.5 | (2.3 | ) | 0.4 | 10.2 | (2.4 | ) | 5.9 | ||||||||||||||||
Foreign currency translation adjustments | 0.6 | — | — | — | 0.6 | 9.1 | — | — | — | 9.1 | ||||||||||||||||||||
Gains (losses) on cash flow hedges(b) | (5.3 | ) | 1.1 | (2.6 | ) | 0.9 | (5.9 | ) | (14.2 | ) | 3.9 | 3.6 | (1.2 | ) | (7.9 | ) | ||||||||||||||
$ | (6.0 | ) | 1.3 | 8.7 | (1.8 | ) | 2.2 | $ | (7.4 | ) | 4.3 | 13.8 | (3.6 | ) | 7.1 | |||||||||||||||
Three months ended March 31, 2018 | ||||||||||||||||||||||||||||||
Three months ended June 30, 2018 | ||||||||||||||||||||||||||||||
Amounts attributable to Brink's: | ||||||||||||||||||||||||||||||
Benefit plan adjustments | $ | (1.0 | ) | 0.3 | 14.8 | (3.4 | ) | 10.7 | $ | 1.3 | 0.2 | 22.9 | (3.4 | ) | 21.0 | |||||||||||||||
Foreign currency translation adjustments | 0.1 | — | — | — | 0.1 | (138.2 | ) | — | 107.2 | (0.5 | ) | (31.5 | ) | |||||||||||||||||
Gains (losses) on cash flow hedges | 0.4 | (0.1 | ) | — | — | 0.3 | 0.2 | (0.1 | ) | — | — | 0.1 | ||||||||||||||||||
(0.5 | ) | 0.2 | 14.8 | (3.4 | ) | 11.1 | (136.7 | ) | 0.1 | 130.1 | (3.9 | ) | (10.4 | ) | ||||||||||||||||
Amounts attributable to noncontrolling interests: | ||||||||||||||||||||||||||||||
Benefit plan adjustments | — | — | 0.2 | — | 0.2 | — | — | (0.2 | ) | — | (0.2 | ) | ||||||||||||||||||
Foreign currency translation adjustments | 0.9 | — | — | — | 0.9 | (0.8 | ) | — | — | — | (0.8 | ) | ||||||||||||||||||
0.9 | — | 0.2 | — | 1.1 | (0.8 | ) | — | (0.2 | ) | — | (1.0 | ) | ||||||||||||||||||
Total | ||||||||||||||||||||||||||||||
Benefit plan adjustments(a) | (1.0 | ) | 0.3 | 15.0 | (3.4 | ) | 10.9 | 1.3 | 0.2 | 22.7 | (3.4 | ) | 20.8 | |||||||||||||||||
Foreign currency translation adjustments | 1.0 | — | — | — | 1.0 | (139.0 | ) | — | 107.2 | (0.5 | ) | (32.3 | ) | |||||||||||||||||
Gains (losses) on cash flow hedges(b) | 0.4 | (0.1 | ) | — | — | 0.3 | 0.2 | (0.1 | ) | — | — | 0.1 | ||||||||||||||||||
$ | 0.4 | 0.2 | 15.0 | (3.4 | ) | 12.2 | $ | (137.5 | ) | 0.1 | 129.9 | (3.9 | ) | (11.4 | ) |
Amounts Arising During the Current Period | Amounts Reclassified to Net Income (Loss) | ||||||||||||||
(In millions) | Pretax | Income Tax | Pretax | Income Tax | Total Other Comprehensive Income (Loss) | ||||||||||
Six months ended June 30, 2019 | |||||||||||||||
Amounts attributable to Brink's: | |||||||||||||||
Benefit plan adjustments | $ | (3.6 | ) | 0.6 | 21.5 | (5.1 | ) | 13.4 | |||||||
Foreign currency translation adjustments | 9.3 | — | — | — | 9.3 | ||||||||||
Gains (losses) on cash flow hedges | (19.5 | ) | 5.0 | 1.0 | (0.3 | ) | (13.8 | ) | |||||||
(13.8 | ) | 5.6 | 22.5 | (5.4 | ) | 8.9 | |||||||||
Amounts attributable to noncontrolling interests: | |||||||||||||||
Foreign currency translation adjustments | 0.4 | — | — | — | 0.4 | ||||||||||
0.4 | — | — | — | 0.4 | |||||||||||
Total | |||||||||||||||
Benefit plan adjustments(a) | (3.6 | ) | 0.6 | 21.5 | (5.1 | ) | 13.4 | ||||||||
Foreign currency translation adjustments | 9.7 | — | — | — | 9.7 | ||||||||||
Gains (losses) on cash flow hedges(b) | (19.5 | ) | 5.0 | 1.0 | (0.3 | ) | (13.8 | ) | |||||||
$ | (13.4 | ) | 5.6 | 22.5 | (5.4 | ) | 9.3 | ||||||||
Six months ended June 30, 2018 | |||||||||||||||
Amounts attributable to Brink's: | |||||||||||||||
Benefit plan adjustments | $ | 0.3 | 0.5 | 37.7 | (6.8 | ) | 31.7 | ||||||||
Foreign currency translation adjustments | (138.1 | ) | — | 107.2 | (0.5 | ) | (31.4 | ) | |||||||
Gains (losses) on cash flow hedges | 0.6 | (0.2 | ) | — | — | 0.4 | |||||||||
(137.2 | ) | 0.3 | 144.9 | (7.3 | ) | 0.7 | |||||||||
Amounts attributable to noncontrolling interests: | |||||||||||||||
Foreign currency translation adjustments | 0.1 | — | — | — | 0.1 | ||||||||||
0.1 | — | — | — | 0.1 | |||||||||||
Total | |||||||||||||||
Benefit plan adjustments(a) | 0.3 | 0.5 | 37.7 | (6.8 | ) | 31.7 | |||||||||
Foreign currency translation adjustments | (138.0 | ) | — | 107.2 | (0.5 | ) | (31.3 | ) | |||||||
Gains (losses) on cash flow hedges(b) | 0.6 | (0.2 | ) | — | — | 0.4 | |||||||||
$ | (137.1 | ) | 0.3 | 144.9 | (7.3 | ) | 0.8 |
(a) | The amortization of actuarial losses and prior service cost is part of total net periodic retirement benefit cost when reclassified to net income. Net periodic retirement benefit cost also includes service cost, interest cost, expected return on assets, and settlement losses. Total service cost is allocated between cost of revenues and selling, general and administrative expenses on a plan-by-plan basis and the remaining net periodic retirement benefit cost items are allocated to interest and other nonoperating income (expense): |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Total net periodic retirement benefit cost included in: | |||||||||||||||||||
Cost of revenues | $ | 1.9 | 2.4 | $ | 1.9 | 2.1 | $ | 3.8 | 4.5 | ||||||||||
Selling, general and administrative expenses | 0.6 | 0.6 | 0.6 | 0.6 | 1.2 | 1.2 | |||||||||||||
Interest and other nonoperating income (expense) | 9.7 | 11.7 | 7.8 | 10.0 | 17.5 | 21.7 |
(b) | Pretax gains and losses on cash flow hedges are classified in the condensed consolidated statements of operations as: |
(In millions) | Benefit Plan Adjustments | Foreign Currency Translation Adjustments | Gains (Losses) on Cash Flow Hedges | Total | ||||||||
Balance as of December 31, 2018 | $ | (572.1 | ) | (382.0 | ) | 0.8 | (953.3 | ) | ||||
Other comprehensive income (loss) before reclassifications | (3.0 | ) | 9.3 | (14.5 | ) | (8.2 | ) | |||||
Amounts reclassified from accumulated other comprehensive loss to net income | 16.4 | — | 0.7 | 17.1 | ||||||||
Other comprehensive income (loss) attributable to Brink's | 13.4 | 9.3 | (13.8 | ) | 8.9 | |||||||
Cumulative effect of change in accounting principle(a) | (28.8 | ) | — | — | (28.8 | ) | ||||||
Balance as of June 30, 2019 | $ | (587.5 | ) | (372.7 | ) | (13.0 | ) | (973.2 | ) |
(In millions) | Benefit Plan Adjustments | Foreign Currency Translation Adjustments | Gains (Losses) on Cash Flow Hedges | Total | ||||||||
Balance as of December 31, 2018 | $ | (572.1 | ) | (382.0 | ) | 0.8 | (953.3 | ) | ||||
Other comprehensive income (loss) before reclassifications | (1.1 | ) | 0.3 | (4.2 | ) | (5.0 | ) | |||||
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 8.6 | — | (1.7 | ) | 6.9 | |||||||
Other comprehensive income (loss) attributable to Brink's | 7.5 | 0.3 | (5.9 | ) | 1.9 | |||||||
Cumulative effect of change in accounting principle(a) | (28.8 | ) | — | — | (28.8 | ) | ||||||
Balance as of March 31, 2019 | $ | (593.4 | ) | (381.7 | ) | (5.1 | ) | (980.2 | ) |
(a) | We adopted ASU 2018-02 (see Note 1) effective January 1, 2019 and recognized a cumulative-effect adjustment to retained earnings. |
(In millions) | June 30, 2019 | December 31, 2018 | ||||
Senior unsecured notes | ||||||
Carrying value | $ | 600.0 | 600.0 | |||
Fair value | 596.1 | 519.9 |
(In millions) | March 31, 2019 | December 31, 2018 | ||||
Senior unsecured notes | ||||||
Carrying value | $ | 600.0 | 600.0 | |||
Fair value | 574.7 | 519.9 |
March 31, | December 31, | June 30, | December 31, | |||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | ||||||||
Debt: | ||||||||||||
Short-term borrowings | ||||||||||||
Restricted cash borrowings(a) | $ | 10.3 | 10.5 | $ | 10.4 | 10.5 | ||||||
Other | 13.1 | 18.4 | 18.8 | 18.4 | ||||||||
Total short-term borrowings | $ | 23.4 | 28.9 | $ | 29.2 | 28.9 | ||||||
Long-term debt | ||||||||||||
Bank credit facilities: | ||||||||||||
Term loan A(b) | $ | 796.5 | 466.9 | $ | 786.7 | 466.9 | ||||||
Senior unsecured notes(c) | 592.2 | 592.0 | 592.5 | 592.0 | ||||||||
Revolving Credit Facility | 147.3 | 340.0 | 209.4 | 340.0 | ||||||||
Other | 6.7 | 5.7 | 8.0 | 5.7 | ||||||||
Financing leases | 123.3 | 120.5 | 133.7 | 120.5 | ||||||||
Total long-term debt | $ | 1,666.0 | 1,525.1 | $ | 1,730.3 | 1,525.1 | ||||||
Total debt | $ | 1,689.4 | 1,554.0 | $ | 1,759.5 | 1,554.0 | ||||||
Included in: | ||||||||||||
Current liabilities | $ | 92.9 | 82.4 | $ | 101.8 | 82.4 | ||||||
Noncurrent liabilities | 1,596.5 | 1,471.6 | 1,657.7 | 1,471.6 | ||||||||
Total debt | $ | 1,689.4 | 1,554.0 | $ | 1,759.5 | 1,554.0 |
(a) | These amounts are for short-term borrowings related to cash borrowed under lending arrangements used in the process of managing customer cash supply chains, which is currently classified as restricted cash and not available for general corporate purposes. See Note 12 for more details. |
(b) | Amounts outstanding are net of unamortized debt costs of |
(c) | Amounts outstanding are net of unamortized debt costs of |
(In millions) | Balance sheet classification | June 30, 2019 | ||
Assets: | ||||
Operating lease assets | Right-of-use assets, net | $ | 280.8 | |
Finance lease assets | Property and equipment, net | 145.9 | ||
Total leased assets | $ | 426.7 | ||
Liabilities: | ||||
Current: | ||||
Operating | Accrued liabilities | $ | 61.7 | |
Financing | Current maturities of long-term debt | 29.0 | ||
Noncurrent: | ||||
Operating | Lease liabilities | 229.9 | ||
Financing | Long-term debt | 104.7 | ||
Total lease liabilities | $ | 425.3 |
(In millions) | Balance sheet classification | March 31, 2019 | ||
Assets: | ||||
Operating lease assets | Right-of-use assets, net | $ | 292.2 | |
Finance lease assets | Property and equipment, net | 130.9 | ||
Total leased assets | $ | 423.1 | ||
Liabilities: | ||||
Current: | ||||
Operating | Accrued liabilities | $ | 65.1 | |
Financing | Current maturities of long-term debt | 25.6 | ||
Noncurrent: | ||||
Operating | Lease liabilities | 237.6 | ||
Financing | Long-term debt | 97.7 | ||
Total lease liabilities | $ | 426.0 |
(In millions) | 2019 | 2019 | ||||
Three Months Ended March 31, | ||||||
Six Months Ended June 30, | ||||||
Operating lease cost(a) | $ | 24.8 | $ | 49.7 | ||
Short-term lease cost | 3.5 | 8.9 | ||||
Financial lease cost: | ||||||
Amortization of right-of-use assets | 7.7 | 14.0 | ||||
Interest on lease liabilities | 1.7 | 3.5 | ||||
Total lease cost | $ | 37.7 | $ | 76.1 |
(a) | Includes variable lease costs, which are immaterial. |
(In millions, except for lease term and discount rate) | 2019 | ||
Six Months Ended June 30, | |||
Supplemental Cash Flows Information | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | 48.6 | |
Operating cash flows from finance leases | 3.5 | ||
Financing cash flows from finance leases | 13.7 | ||
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 26.6 | ||
Finance leases | 28.6 | ||
Weighted Average Remaining Lease Term | |||
Operating leases | 7.8 years | ||
Finance leases | 5.2 years | ||
Weighted Average Discount Rate | |||
Operating leases | 6.7 | % | |
Finance leases | 5.5 | % |
(In millions, except for lease term and discount rate) | 2019 | ||
Three Months Ended March 31, | |||
Supplemental Cash Flows Information | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | 22.4 | |
Operating cash flows from finance leases | 1.7 | ||
Financing cash flows from finance leases | 6.9 | ||
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 27.1 | ||
Finance leases | 12.1 | ||
Weighted Average Remaining Lease Term | |||
Operating leases | 7.5 years | ||
Finance leases | 5.2 years | ||
Weighted Average Discount Rate | |||
Operating leases | 6.8 | % | |
Finance leases | 5.7 | % |
(In millions) | Facilities | Vehicles | Other | Total | ||||||||
2019 | $ | 51.7 | 9.7 | 21.6 | 83.0 | |||||||
2020 | 46.2 | 5.5 | 15.5 | 67.2 | ||||||||
2021 | 39.5 | 2.3 | 9.5 | 51.3 | ||||||||
2022 | 33.8 | 0.6 | 5.3 | 39.7 | ||||||||
2023 | 29.4 | 0.1 | 2.3 | 31.8 | ||||||||
Later years | 130.3 | — | — | 130.3 | ||||||||
$ | 330.9 | 18.2 | 54.2 | 403.3 |
(In millions) | Facilities | Vehicles | Other | Total | ||||||||
2019 | $ | 51.7 | 9.7 | 21.6 | 83.0 | |||||||
2020 | 46.2 | 5.5 | 15.5 | 67.2 | ||||||||
2021 | 39.5 | 2.3 | 9.5 | 51.3 | ||||||||
2022 | 33.8 | 0.6 | 5.3 | 39.7 | ||||||||
2023 | 29.4 | 0.1 | 2.3 | 31.8 | ||||||||
Later years | 130.3 | — | — | 130.3 | ||||||||
$ | 330.9 | 18.2 | 54.2 | 403.3 |
(In millions) | |||
2019 | $ | 25.1 | |
2020 | 23.5 | ||
2021 | 21.7 | ||
2022 | 19.7 | ||
2023 | 16.2 | ||
Later years | 14.3 | ||
Total | $ | 120.5 |
(In millions) | |||
2019 | $ | 25.1 | |
2020 | 23.5 | ||
2021 | 21.7 | ||
2022 | 19.7 | ||
2023 | 16.2 | ||
Later years | 14.3 | ||
Total | $ | 120.5 |
Compensation Expense | Compensation Expense | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||
Performance Share Units | $ | 8.8 | 2.7 | $ | 14.6 | 6.6 | |||||||
Market Share Units | — | — | — | 0.1 | |||||||||
Restricted Stock Units | 1.9 | 1.5 | 3.9 | 3.3 | |||||||||
Deferred Stock Units and fees paid in stock | 0.3 | 0.3 | 0.6 | 0.5 | |||||||||
Stock Options | 5.7 | 1.2 | 7.0 | 2.0 | |||||||||
Share-based payment expense | 16.7 | 5.7 | 26.1 | 12.5 | |||||||||
Income tax benefit | (3.8 | ) | (1.3 | ) | (6.0 | ) | (2.9 | ) | |||||
Share-based payment expense, net of tax | $ | 12.9 | 4.4 | $ | 20.1 | 9.6 |
Compensation Expense | ||||||
Three Months Ended March 31, | ||||||
(in millions) | 2019 | 2018 | ||||
Performance Share Units | $ | 5.8 | 3.9 | |||
Market Share Units | — | 0.1 | ||||
Restricted Stock Units | 2.0 | 1.8 | ||||
Deferred Stock Units and fees paid in stock | 0.3 | 0.2 | ||||
Stock Options | 1.3 | 0.8 | ||||
Share-based payment expense | 9.4 | 6.8 | ||||
Income tax benefit | (2.2 | ) | (1.6 | ) | ||
Share-based payment expense, net of tax | $ | 7.2 | 5.2 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Outstanding balance as of December 31, 2018 | 1,287.0 | $ | 10.88 | |||
Granted | — | — | ||||
Forfeited | — | — | ||||
Exercised | — | — | ||||
Outstanding balance as of June 30, 2019(a) | 1,287.0 | $ | 14.00 |
(a) | Certain performance-based stock options were modified in the second quarter of 2019. The weighted-average grant date fair value per share at June 30, 2019 reflects the inclusion of the modified fair value per share for the modified awards. |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Outstanding balance as of December 31, 2018 | 1,287.0 | $ | 10.88 | |||
Granted | — | — | ||||
Forfeited | — | — | ||||
Exercised | — | — | ||||
Outstanding balance as of March 31, 2019 | 1,287.0 | $ | 10.88 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Outstanding balance as of December 31, 2018 | 2.7 | $ | 21.09 | |||
Granted | 138.7 | 21.58 | ||||
Forfeited | (14.4 | ) | 21.60 | |||
Exercised | — | — | ||||
Outstanding balance as of June 30, 2019 | 127.0 | $ | 21.56 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Outstanding balance as of December 31, 2018 | 2.7 | $ | 21.09 | |||
Granted | 129.9 | 21.60 | ||||
Forfeited | — | — | ||||
Exercised | — | — | ||||
Outstanding balance as of March 31, 2019 | 132.6 | $ | 21.59 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Nonvested balance as of December 31, 2018 | 235.8 | $ | 52.63 | |||
Granted | 91.1 | 78.03 | ||||
Forfeited | (6.6 | ) | 71.70 | |||
Vested | (117.4 | ) | 44.73 | |||
Nonvested balance as of June 30, 2019(a) | 202.9 | $ | 68.29 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Nonvested balance as of December 31, 2018 | 235.8 | $ | 52.63 | |||
Granted | 80.4 | 77.99 | ||||
Forfeited | (2.9 | ) | 64.37 | |||
Vested | (108.0 | ) | 45.24 | |||
Nonvested balance as of March 31, 2019 | 205.3 | $ | 66.28 |
(a) | Certain RSUs were modified in the second quarter of 2019. The weighted-average grant date fair value per share at June 30, 2019 reflects the inclusion of the modified fair value per share for the modified awards. |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Nonvested balance as of December 31, 2018 | 697.3 | $ | 47.74 | |||
Granted | 202.9 | 81.42 | ||||
Forfeited | (12.8 | ) | 77.06 | |||
Vested(a)(b) | (278.8 | ) | 29.40 | |||
Nonvested balance as of June 30, 2019(c) | 608.6 | $ | 68.99 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Nonvested balance as of December 31, 2018 | 697.3 | $ | 47.74 | |||
Granted | 191.0 | 81.43 | ||||
Forfeited | (4.0 | ) | 63.18 | |||
Vested(a)(b) | (187.0 | ) | 29.76 | |||
Nonvested balance as of March 31, 2019 | 697.3 | $ | 61.76 |
(a) | The vested PSUs presented are based on the target amount of the award. In accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the performance period ended December 31, 2018 were |
(b) | Certain PSUs were modified and distributed in the first quarter of 2019 and the resulting impact was not material. |
(c) | Certain PSUs were modified in the second quarter of 2019. The weighted-average grant date fair value per share at June 30, 2019 reflects the inclusion of the modified fair value per share for the modified awards. |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Nonvested balance as of December 31, 2018 | 12.5 | $ | 74.43 | |||
Granted | 11.1 | 78.70 | ||||
Vested | (12.5 | ) | 74.43 | |||
Nonvested balance as of June 30, 2019 | 11.1 | $ | 78.70 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Nonvested balance as of December 31, 2018 | 12.5 | $ | 74.43 | |||
Granted | — | — | ||||
Forfeited | — | — | ||||
Vested | (0.7 | ) | 74.81 | |||
Nonvested balance as of March 31, 2019 | 11.8 | $ | 74.41 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||
Weighted-average shares: | ||||||||||||||||
Basic(a) | 50.0 | 50.9 | 50.2 | 51.2 | 50.1 | 51.0 | ||||||||||
Effect of dilutive stock awards and options | 0.9 | 1.2 | 0.7 | — | 0.8 | — | ||||||||||
Diluted | 50.9 | 52.1 | 50.9 | 51.2 | 50.9 | 51.0 | ||||||||||
Antidilutive stock awards and options excluded from denominator | 0.1 | — | 0.1 | 1.6 | 0.1 | 1.7 |
(a) | We have deferred compensation plans for directors and certain of our employees. Some amounts owed to participants are denominated in common stock units. Each unit represents one share of common stock. The number of shares used to calculate basic earnings per share includes the weighted-average common stock units credited to employees and directors under the deferred compensation plans. Additionally, nonvested units are also included in the computation of basic weighted-average shares when the requisite service period has been completed. Accordingly, included in basic shares are 0.3 million in the three months and 0.3 million in the six months ended |
Six Months Ended June 30, | ||||||
(In millions) | 2019 | 2018 | ||||
Cash paid for: | ||||||
Interest | $ | 40.9 | 29.3 | |||
Income taxes, net | 31.9 | 48.6 |
Three Months Ended March 31, | ||||||
(In millions) | 2019 | 2018 | ||||
Cash paid for: | ||||||
Interest | $ | 15.3 | 7.5 | |||
Income taxes, net | 11.4 | 20.5 |
June 30, | December 31, | |||||
(In millions) | 2019 | 2018 | ||||
Cash and cash equivalents | $ | 304.9 | 343.4 | |||
Restricted cash | 105.8 | 136.1 | ||||
Total, cash, cash equivalents, and restricted cash in the condensed consolidated statements of cash flows | $ | 410.7 | 479.5 |
March 31, | December 31, | |||||
(In millions) | 2019 | 2018 | ||||
Cash and cash equivalents | $ | 283.2 | 343.4 | |||
Restricted cash | 97.1 | 136.1 | ||||
Total, cash, cash equivalents, and restricted cash in the condensed consolidated statements of cash flows | $ | 380.3 | 479.5 |
◦ | Currency and coin counting and sorting; deposit preparation and reconciliations; other cash management services |
◦ | Safe and safe control device installation and servicing (including our patented CompuSafe® service) |
◦ | Vaulting services |
◦ | Check imaging services |
Three Months Ended March 31, | % | Three Months Ended June 30, | % | Six Months Ended June 30, | % | |||||||||||||||||||||
(In millions, except for per share amounts) | 2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||
GAAP | ||||||||||||||||||||||||||
Revenues | 905.0 | 879.1 | 3 | $ | 914.0 | 849.7 | 8 | 1,819.0 | 1,728.8 | 5 | ||||||||||||||||
Cost of revenues | 702.7 | 693.6 | 1 | 708.5 | 666.8 | 6 | 1,411.2 | 1,360.4 | 4 | |||||||||||||||||
Selling, general and administrative expenses | 141.7 | 123.1 | 15 | 154.6 | 119.9 | 29 | 296.3 | 243.0 | 22 | |||||||||||||||||
Operating profit | 58.4 | 64.8 | (10 | ) | 52.6 | 61.7 | (15 | ) | 111.0 | 126.5 | (12 | ) | ||||||||||||||
Income (loss) from continuing operations(a) | 13.7 | 22.1 | (38 | ) | 12.6 | (107.8 | ) | fav | 26.3 | (85.7 | ) | fav | ||||||||||||||
Diluted EPS from continuing operations(a) | 0.27 | 0.42 | (36 | ) | $ | 0.25 | (2.11 | ) | fav | 0.52 | (1.68 | ) | fav | |||||||||||||
Non-GAAP(b) | ||||||||||||||||||||||||||
Non-GAAP revenues | 905.0 | 853.3 | 6 | $ | 914.3 | 824.1 | 11 | 1,819.3 | 1,677.4 | 8 | ||||||||||||||||
Non-GAAP operating profit | 84.8 | 71.5 | 19 | 88.8 | 76.2 | 17 | 173.6 | 147.7 | 18 | |||||||||||||||||
Non-GAAP income from continuing operations(a) | 40.1 | 35.4 | 13 | 42.8 | 40.4 | 6 | 82.9 | 75.8 | 9 | |||||||||||||||||
Non-GAAP diluted EPS from continuing operations(a) | 0.79 | 0.68 | 16 | $ | 0.84 | 0.78 | 8 | 1.63 | 1.45 | 12 |
(a) | Amounts reported in this table are attributable to the shareholders of Brink’s and exclude earnings related to noncontrolling interests. |
(b) | Non-GAAP results are reconciled to the applicable GAAP results on pages |
Organic | Acquisitions / | % Change | Organic | Acquisitions / | % Change | ||||||||||||||||||||||||||||||||||||
(In millions) | 1Q'18 | Change | Dispositions(a) | Currency(b) | 1Q'19 | Total | Organic | 2Q'18 | Change | Dispositions(a) | Currency(b) | 2Q'19 | Total | Organic | |||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||
North America | $ | 320.1 | 19.1 | 99.8 | (4.5 | ) | 434.5 | 36 | 6 | $ | 324.0 | 19.7 | 98.7 | 0.1 | 442.5 | 37 | 6 | ||||||||||||||||||||||||
South America | 254.8 | 30.1 | 20.6 | (75.2 | ) | 230.3 | (10 | ) | 12 | 233.3 | 37.7 | 16.6 | (62.4 | ) | 225.2 | (3 | ) | 16 | |||||||||||||||||||||||
Rest of World | 278.4 | (0.8 | ) | (20.4 | ) | (17.0 | ) | 240.2 | (14 | ) | — | 266.8 | 6.3 | (14.7 | ) | (11.8 | ) | 246.6 | (8 | ) | 2 | ||||||||||||||||||||
Segment revenues(e) | 853.3 | 48.4 | 100.0 | (96.7 | ) | 905.0 | 6 | 6 | 824.1 | 63.7 | 100.6 | (74.1 | ) | 914.3 | 11 | 8 | |||||||||||||||||||||||||
Other items not allocated to segments(d) | 25.8 | (25.8 | ) | — | — | — | (100 | ) | (100 | ) | 25.6 | (25.6 | ) | (0.3 | ) | — | (0.3 | ) | unfav | unfav | |||||||||||||||||||||
Revenues - GAAP | $ | 879.1 | 22.6 | 100.0 | (96.7 | ) | 905.0 | 3 | 3 | $ | 849.7 | 38.1 | 100.3 | (74.1 | ) | 914.0 | 8 | 4 | |||||||||||||||||||||||
Operating profit: | |||||||||||||||||||||||||||||||||||||||||
North America | $ | 20.6 | 16.1 | 7.8 | (0.5 | ) | 44.0 | fav | 78 | $ | 26.1 | 13.0 | 6.9 | 0.4 | 46.4 | 78 | 50 | ||||||||||||||||||||||||
South America | 55.6 | 5.2 | 4.1 | (21.9 | ) | 43.0 | (23 | ) | 9 | 46.1 | 15.0 | 3.5 | (19.6 | ) | 45.0 | (2 | ) | 33 | |||||||||||||||||||||||
Rest of World | 25.6 | (1.5 | ) | 1.0 | (1.3 | ) | 23.8 | (7 | ) | (6 | ) | 26.2 | 1.0 | — | (1.0 | ) | 26.2 | — | 4 | ||||||||||||||||||||||
Segment operating profit | 101.8 | 19.8 | 12.9 | (23.7 | ) | 110.8 | 9 | 19 | 98.4 | 29.0 | 10.4 | (20.2 | ) | 117.6 | 20 | 29 | |||||||||||||||||||||||||
Corporate(c) | (30.3 | ) | 2.8 | — | 1.5 | (26.0 | ) | (14 | ) | (9 | ) | (22.2 | ) | (8.0 | ) | — | 1.4 | (28.8 | ) | 30 | 36 | ||||||||||||||||||||
Operating profit - non-GAAP | 71.5 | 22.6 | 12.9 | (22.2 | ) | 84.8 | 19 | 32 | 76.2 | 21.0 | 10.4 | (18.8 | ) | 88.8 | 17 | 28 | |||||||||||||||||||||||||
Other items not allocated to segments(d) | (6.7 | ) | (6.2 | ) | (11.7 | ) | (1.8 | ) | (26.4 | ) | unfav | 93 | (14.5 | ) | (15.6 | ) | (16.0 | ) | 9.9 | (36.2 | ) | unfav | unfav | ||||||||||||||||||
Operating profit - GAAP | $ | 64.8 | 16.4 | 1.2 | (24.0 | ) | 58.4 | (10 | ) | 25 | $ | 61.7 | 5.4 | (5.6 | ) | (8.9 | ) | 52.6 | (15 | ) | 9 |
(a) | Non-GAAP amounts include the impact of prior year comparable period results for acquired and disposed businesses. GAAP results also include the impact of acquisition-related intangible amortization, restructuring and other charges, and disposition-related gains/losses. |
(b) | The amounts in the “Currency” column consist of the effects of Venezuela devaluations prior to deconsolidation, the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. Monthly currency changes represent the accumulation throughout the year of the impact on current period results of changes in foreign currency rates from the prior year period. |
(c) | Corporate expenses are not allocated to segment results. Corporate expenses include salaries and other costs to manage the global business and to perform activities required by public companies. |
(d) | See pages |
(e) | Segment revenues equal our total reported non-GAAP revenues. |
Organic | Acquisitions / | % Change | |||||||||||||||||||
(In millions) | YTD '18 | Change | Dispositions(a) | Currency(b) | YTD '19 | Total | Organic | ||||||||||||||
Revenues: | |||||||||||||||||||||
North America | $ | 644.1 | 38.8 | 198.5 | (4.4 | ) | 877.0 | 36 | 6 | ||||||||||||
South America | 488.1 | 67.8 | 37.2 | (137.6 | ) | 455.5 | (7 | ) | 14 | ||||||||||||
Rest of World | 545.2 | 5.5 | (35.1 | ) | (28.8 | ) | 486.8 | (11 | ) | 1 | |||||||||||
Segment revenues(e) | 1,677.4 | 112.1 | 200.6 | (170.8 | ) | 1,819.3 | 8 | 7 | |||||||||||||
Other items not allocated to segments(d) | 51.4 | (51.4 | ) | (0.3 | ) | — | (0.3 | ) | unfav | unfav | |||||||||||
Revenues - GAAP | $ | 1,728.8 | 60.7 | 200.3 | (170.8 | ) | 1,819.0 | 5 | 4 | ||||||||||||
Operating profit: | |||||||||||||||||||||
North America | $ | 46.7 | 29.1 | 14.7 | (0.1 | ) | 90.4 | 94 | 62 | ||||||||||||
South America | 101.7 | 20.2 | 7.6 | (41.5 | ) | 88.0 | (13 | ) | 20 | ||||||||||||
Rest of World | 51.8 | (0.5 | ) | 1.0 | (2.3 | ) | 50.0 | (3 | ) | (1 | ) | ||||||||||
Segment operating profit | 200.2 | 48.8 | 23.3 | (43.9 | ) | 228.4 | 14 | 24 | |||||||||||||
Corporate(c) | (52.5 | ) | (5.2 | ) | — | 2.9 | (54.8 | ) | 4 | 10 | |||||||||||
Operating profit - non-GAAP | 147.7 | 43.6 | 23.3 | (41.0 | ) | 173.6 | 18 | 30 | |||||||||||||
Other items not allocated to segments(d) | (21.2 | ) | (21.8 | ) | (27.7 | ) | 8.1 | (62.6 | ) | unfav | unfav | ||||||||||
Operating profit - GAAP | $ | 126.5 | 21.8 | (4.4 | ) | (32.9 | ) | 111.0 | (12 | ) | 17 |
Three Months Ended March 31, | % | Three Months Ended June 30, | % | Six Months Ended June 30, | % | ||||||||||||||||||||||
(In millions) | 2019 | 2018 | change | 2019 | 2018 | change | 2019 | 2018 | change | ||||||||||||||||||
General, administrative and other expenses | $ | (27.1 | ) | (31.1 | ) | (13 | ) | $ | (32.5 | ) | (20.9 | ) | 56 | $ | (59.6 | ) | (52.0 | ) | 15 | ||||||||
Foreign currency transaction gains (losses) | 0.9 | (0.5 | ) | fav | (0.3 | ) | (1.7 | ) | (82 | ) | 0.6 | (2.2 | ) | fav | |||||||||||||
Reconciliation of segment policies to GAAP | 0.2 | 1.3 | (85 | ) | 4.0 | 0.4 | fav | 4.2 | 1.7 | fav | |||||||||||||||||
Corporate expenses | $ | (26.0 | ) | (30.3 | ) | (14 | ) | $ | (28.8 | ) | (22.2 | ) | 30 | $ | (54.8 | ) | (52.5 | ) | 4 |
Three Months Ended March 31, | % | Three Months Ended June 30, | % | Six Months Ended June 30, | % | |||||||||||||||||||||||
(In millions) | 2019 | 2018 | change | 2019 | 2018 | change | 2019 | 2018 | change | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Venezuela operations | $ | — | 25.8 | (100 | ) | $ | — | 25.6 | (100 | ) | $ | — | 51.4 | (100 | ) | |||||||||||||
Acquisitions and dispositions | (0.3 | ) | — | unfav | (0.3 | ) | — | unfav | ||||||||||||||||||||
Revenues | $ | — | 25.8 | (100 | ) | $ | (0.3 | ) | 25.6 | unfav | $ | (0.3 | ) | 51.4 | unfav | |||||||||||||
Operating profit: | ||||||||||||||||||||||||||||
Venezuela operations | — | 3.5 | (100 | ) | $ | — | (1.2 | ) | (100 | ) | — | 2.3 | (100 | ) | ||||||||||||||
Reorganization and Restructuring | (3.5 | ) | (3.7 | ) | (5 | ) | (10.6 | ) | (4.5 | ) | unfav | (14.1 | ) | (8.2 | ) | 72 | ||||||||||||
Acquisitions and dispositions | (17.2 | ) | (6.5 | ) | unfav | (22.6 | ) | (7.4 | ) | unfav | (39.8 | ) | (13.9 | ) | unfav | |||||||||||||
Argentina highly inflationary impact | (4.3 | ) | — | unfav | (0.1 | ) | — | unfav | (4.4 | ) | — | unfav | ||||||||||||||||
Reporting compliance | (1.4 | ) | — | unfav | (2.9 | ) | (1.4 | ) | unfav | (4.3 | ) | (1.4 | ) | unfav | ||||||||||||||
Operating profit | $ | (26.4 | ) | (6.7 | ) | unfav | $ | (36.2 | ) | (14.5 | ) | unfav | $ | (62.6 | ) | (21.2 | ) | unfav |
Three Months Ended March 31, | % | Three Months Ended June 30, | % | Six Months Ended June 30, | % | |||||||||||||||||||||||
(In millions) | 2019 | 2018 | change | 2019 | 2018 | change | 2019 | 2018 | change | |||||||||||||||||||
Reportable Segments: | ||||||||||||||||||||||||||||
North America | $ | (1.0 | ) | (0.5 | ) | 100 | $ | (0.5 | ) | (0.1 | ) | unfav | $ | (1.5 | ) | (0.6 | ) | unfav | ||||||||||
South America | (0.6 | ) | (0.8 | ) | (25 | ) | (0.3 | ) | (0.2 | ) | 50 | (0.9 | ) | (1.0 | ) | (10 | ) | |||||||||||
Rest of World | (1.4 | ) | (2.4 | ) | (42 | ) | (1.9 | ) | (4.2 | ) | (55 | ) | (3.3 | ) | (6.6 | ) | (50 | ) | ||||||||||
Total reportable segments | (3.0 | ) | (3.7 | ) | (19 | ) | (2.7 | ) | (4.5 | ) | (40 | ) | (5.7 | ) | (8.2 | ) | (30 | ) | ||||||||||
Corporate items | (0.5 | ) | — | unfav | (7.9 | ) | — | unfav | (8.4 | ) | — | unfav | ||||||||||||||||
Total | $ | (3.5 | ) | (3.7 | ) | (5 | ) | $ | (10.6 | ) | (4.5 | ) | unfav | $ | (14.1 | ) | (8.2 | ) | 72 |
Three Months Ended March 31, | % | Three Months Ended June 30, | % | Six Months Ended June 30, | % | |||||||||||||||||||||||
(In millions) | 2019 | 2018 | change | 2019 | 2018 | change | 2019 | 2018 | change | |||||||||||||||||||
Foreign currency items: | ||||||||||||||||||||||||||||
Transaction gains (losses) | $ | (6.9 | ) | 4.4 | unfav | $ | 1.7 | (7.7 | ) | fav | $ | (5.2 | ) | (3.3 | ) | 58 | ||||||||||||
Derivative instrument gains (losses) | 3.9 | (2.1 | ) | fav | (1.4 | ) | 5.5 | unfav | 2.5 | 3.4 | (26 | ) | ||||||||||||||||
Gains on sale of property and other assets | 0.1 | 0.4 | (75 | ) | 1.1 | 0.1 | fav | 1.2 | 0.5 | fav | ||||||||||||||||||
Impairment losses | (1.2 | ) | (1.8 | ) | (33 | ) | (0.4 | ) | (0.9 | ) | (56 | ) | (1.6 | ) | (2.7 | ) | (41 | ) | ||||||||||
Share in earnings of equity affiliates | 0.2 | 1.1 | (82 | ) | 0.3 | 0.3 | — | 0.5 | 1.4 | (64 | ) | |||||||||||||||||
Royalty income | 1.2 | 0.5 | fav | 1.3 | 1.3 | — | 2.5 | 1.8 | 39 | |||||||||||||||||||
Other gains (losses) | 0.5 | (0.1 | ) | fav | (0.9 | ) | 0.1 | unfav | (0.4 | ) | — | unfav | ||||||||||||||||
Other operating income (expense) | $ | (2.2 | ) | 2.4 | unfav | $ | 1.7 | (1.3 | ) | fav | $ | (0.5 | ) | 1.1 | unfav |
Three Months Ended March 31, | % | Three Months Ended June 30, | % | Six Months Ended June 30, | % | ||||||||||||||||||||
(In millions) | 2019 | 2018 | change | 2019 | 2018 | change | 2019 | 2018 | change | ||||||||||||||||
Interest expense | $ | 23.0 | 15.0 | 53 | $ | 22.7 | 15.8 | 44 | $ | 45.7 | 30.8 | 48 |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | ||||||||||||||||
(In millions) | 2019 | 2018 | change | 2019 | 2018 | change | |||||||||||||
Loss on deconsolidation of Venezuela operations | $ | — | 126.7 | (100 | ) | $ | — | 126.7 | (100 | ) |
Three Months Ended March 31, | % | Three Months Ended June 30, | % | Six Months Ended June 30, | % | |||||||||||||||||||||||
(In millions) | 2019 | 2018 | change | 2019 | 2018 | change | 2019 | 2018 | change | |||||||||||||||||||
Interest income | $ | 1.2 | 2.0 | (40 | ) | $ | 1.1 | 2.1 | (48 | ) | $ | 2.3 | 4.1 | (44 | ) | |||||||||||||
Loss on equity securities | (0.1 | ) | — | unfav | ||||||||||||||||||||||||
Gain on equity securities | — | 1.5 | (100 | ) | — | 1.5 | (100 | ) | ||||||||||||||||||||
Foreign currency transaction losses(a) | — | (2.9 | ) | (100 | ) | — | (12.6 | ) | (100 | ) | — | (15.5 | ) | (100 | ) | |||||||||||||
Retirement benefit cost other than service cost | (9.7 | ) | (11.7 | ) | (17 | ) | (7.8 | ) | (10.0 | ) | (22 | ) | (17.5 | ) | (21.7 | ) | (19 | ) | ||||||||||
Non-income taxes on intercompany billings (b) | (1.0 | ) | (0.3 | ) | unfav | (0.8 | ) | (0.3 | ) | unfav | (1.8 | ) | (0.6 | ) | unfav | |||||||||||||
Venezuela operations (c) | (0.5 | ) | — | unfav | (0.4 | ) | — | unfav | (0.9 | ) | — | unfav | ||||||||||||||||
Gain on lease termination(d) | 5.2 | — | fav | 5.2 | — | fav | ||||||||||||||||||||||
Gain on a disposition of a subsidiary(e) | — | 10.3 | (100 | ) | — | 10.3 | (100 | ) | ||||||||||||||||||||
Other | (1.1 | ) | (0.2 | ) | unfav | (0.4 | ) | 0.9 | unfav | (1.6 | ) | 0.7 | unfav | |||||||||||||||
Interest and other nonoperating income (expense) | $ | (11.2 | ) | (13.1 | ) | (15 | ) | $ | (3.1 | ) | (8.1 | ) | (62 | ) | $ | (14.3 | ) | (21.2 | ) | (33 | ) |
(a) | Prior to the July 1, 2018 highly inflationary designation for accounting purposes, currency transaction losses incurred by Brink's Argentina related to its U.S. dollar-denominated payables to the sellers of Maco Transporatadora and Maco Litoral. |
(b) | Certain of our Latin American subsidiaries incur non-income taxes |
(c) | Charges incurred for providing financial support to Brink's Venezuelan subsidiaries after the June 30, 2018 deconsolidation. We do not expect any future funding of the Venezuela business, as long as current U.S. sanctions remain in effect. |
(d) | Gain on termination of a mining lease obligation related to former coal operations. We have no remaining mining leases. |
(e) | Gain on the sale of our former French airport security services subsidiary in the second quarter of 2018. |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||
Continuing operations | |||||||||||||||||||
Provision for income taxes (in millions) | $ | 9.7 | 11.4 | $ | 12.7 | 18.6 | $ | 22.4 | 30.0 | ||||||||||
Effective tax rate | 40.1 | % | 31.1 | % | 47.4 | % | (20.9 | )% | 43.9 | % | (57.5 | %) |
Three Months Ended March 31, | % | Three Months Ended June 30, | % | Six Months Ended June 30, | % | ||||||||||||||||||||||
(In millions) | 2019 | 2018 | change | 2019 | 2018 | change | 2019 | 2018 | change | ||||||||||||||||||
Net income attributable to noncontrolling interests | $ | 0.8 | 3.2 | (75 | ) | $ | 1.5 | 0.3 | unfav | $ | 2.3 | 3.5 | (34 | ) |
YTD '19 | YTD '18 | YTD '19 | YTD '18 | |||||||||||||||||||||||||||||||||||
(In millions, except for percentages) | Pre-tax | Tax | Effective tax rate | Pre-tax | Tax | Effective tax rate | Pre-tax | Tax | Effective tax rate | Pre-tax | Tax | Effective tax rate | ||||||||||||||||||||||||||
Effective Income Tax Rate(a) | ||||||||||||||||||||||||||||||||||||||
GAAP | $ | 24.2 | 9.7 | 40.1 | % | $ | 36.7 | 11.4 | 31.1 | % | $ | 51.0 | 22.4 | 43.9 | % | $ | (52.2 | ) | 30.0 | (57.5 | )% | |||||||||||||||||
Retirement plans(d) | 8.4 | 1.9 | 8.8 | 1.9 | 14.9 | 3.5 | 16.9 | 3.9 | ||||||||||||||||||||||||||||||
Venezuela operations(b)(f) | 0.5 | — | (1.6 | ) | (1.5 | ) | 0.9 | — | 0.6 | (3.9 | ) | |||||||||||||||||||||||||||
Reorganization and Restructuring(b) | 3.5 | 1.0 | 3.7 | 1.2 | 14.1 | 3.6 | 8.2 | 2.7 | ||||||||||||||||||||||||||||||
Acquisitions and dispositions(b) | 18.7 | 1.7 | 9.6 | 3.1 | 42.8 | 2.8 | 19.6 | 9.3 | ||||||||||||||||||||||||||||||
Tax on accelerated income(e) | — | — | — | 0.5 | — | — | — | 0.3 | ||||||||||||||||||||||||||||||
Argentina highly inflationary impact(b) | 4.3 | — | — | — | 4.4 | — | — | — | ||||||||||||||||||||||||||||||
Reporting compliance(b) | 1.4 | — | — | — | 4.3 | 0.1 | 1.4 | 0.3 | ||||||||||||||||||||||||||||||
Gain on lease termination(g) | (5.2 | ) | — | — | — | |||||||||||||||||||||||||||||||||
Loss on deconsolidation of Venezuela operations(f) | — | — | 126.7 | — | ||||||||||||||||||||||||||||||||||
Income tax rate adjustment(c) | — | 5.8 | — | 3.0 | — | 9.6 | — | (1.1 | ) | |||||||||||||||||||||||||||||
Non-GAAP | $ | 61.0 | 20.1 | 33.0 | % | $ | 57.2 | 19.6 | 34.2 | % | $ | 127.2 | 42.0 | 33.0 | % | $ | 121.2 | 41.5 | 34.2 | % |
(a) | From continuing operations. |
(b) | See “Other Items Not Allocated To Segments” on pages |
(c) | Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 33.0% for 2019 and was 34.2% for 2018. |
(d) | Our U.S. retirement plans are frozen and costs related to these plans are excluded from non-GAAP results. Certain non-U.S. operations also have retirement plans. Settlement charges related to these non-U.S. plans are also excluded from non-GAAP results. |
(e) | The non-GAAP tax rate excludes the 2018 foreign tax benefit that resulted from the transaction that accelerated U.S. tax in 2015. |
(f) |
(g) | Gain on settlement of a mining lease obligation related to |
(h) | Because we reported a loss from continuing operations on a GAAP basis in the second quarter of 2018, GAAP EPS was calculated using basic shares. However, as we reported income from continuing operations on a non-GAAP basis in the second quarter of 2018, non-GAAP EPS was calculated using diluted shares. |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In millions, except for percentages and per share amounts) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||
Revenues: | |||||||||||||||||
GAAP | 905.0 | 879.1 | $ | 914.0 | 849.7 | 1,819.0 | 1,728.8 | ||||||||||
Venezuela operations(b) | — | (25.8 | ) | — | (25.6 | ) | — | (51.4 | ) | ||||||||
Acquisitions and dispositions(b) | 0.3 | — | 0.3 | — | |||||||||||||
Non-GAAP | 905.0 | 853.3 | $ | 914.3 | 824.1 | 1,819.3 | 1,677.4 | ||||||||||
Operating profit: | |||||||||||||||||
GAAP | 58.4 | 64.8 | $ | 52.6 | 61.7 | 111.0 | 126.5 | ||||||||||
Venezuela operations(b) | — | (3.5 | ) | — | 1.2 | — | (2.3 | ) | |||||||||
Reorganization and Restructuring(b) | 3.5 | 3.7 | 10.6 | 4.5 | 14.1 | 8.2 | |||||||||||
Acquisitions and dispositions(b) | 17.2 | 6.5 | 22.6 | 7.4 | 39.8 | 13.9 | |||||||||||
Argentina highly inflationary impact(b) | 4.3 | — | 0.1 | — | 4.4 | — | |||||||||||
Reporting compliance(b) | 1.4 | — | 2.9 | 1.4 | 4.3 | 1.4 | |||||||||||
Non-GAAP | 84.8 | 71.5 | $ | 88.8 | 76.2 | 173.6 | 147.7 | ||||||||||
Operating margin: | |||||||||||||||||
GAAP margin | 6.5 | % | 7.4 | % | 5.8 | % | 7.3 | % | 6.1 | % | 7.3 | % | |||||
Non-GAAP margin | 9.4 | % | 8.4 | % | 9.7 | % | 9.2 | % | 9.5 | % | 8.8 | % | |||||
Interest expense: | |||||||||||||||||
GAAP | (23.0 | ) | (15.0 | ) | $ | (22.7 | ) | (15.8 | ) | (45.7 | ) | (30.8 | ) | ||||
Venezuela operations(b) | — | 0.1 | — | 0.1 | |||||||||||||
Acquisitions and dispositions(b) | 1.5 | 0.2 | 1.5 | 0.2 | 3.0 | 0.4 | |||||||||||
Non-GAAP | $ | (21.2 | ) | (15.5 | ) | (42.7 | ) | (30.3 | ) | ||||||||
Loss on deconsolidation of Venezuela operations: | |||||||||||||||||
GAAP | $ | — | (126.7 | ) | — | (126.7 | ) | ||||||||||
Loss on deconsolidation of Venezuela operations(f) | — | 126.7 | — | 126.7 | |||||||||||||
Non-GAAP | (21.5 | ) | (14.8 | ) | $ | — | — | — | — | ||||||||
Interest and other nonoperating income (expense): | |||||||||||||||||
GAAP | (11.2 | ) | (13.1 | ) | $ | (3.1 | ) | (8.1 | ) | (14.3 | ) | (21.2 | ) | ||||
Retirement plans(d) | 8.4 | 8.8 | 6.5 | 8.1 | 14.9 | 16.9 | |||||||||||
Venezuela operations(b)(f) | 0.5 | 1.9 | 0.4 | 0.9 | 0.9 | 2.8 | |||||||||||
Acquisitions and dispositions(b) | — | 2.9 | — | 2.4 | — | 5.3 | |||||||||||
Gain on lease termination(g) | (5.2 | ) | — | (5.2 | ) | — | |||||||||||
Non-GAAP | (2.3 | ) | 0.5 | $ | (1.4 | ) | 3.3 | (3.7 | ) | 3.8 | |||||||
Provision for income taxes: | |||||||||||||||||
GAAP | 9.7 | 11.4 | $ | 12.7 | 18.6 | 22.4 | 30.0 | ||||||||||
Retirement plans(d) | 1.9 | 1.9 | 1.6 | 2.0 | 3.5 | 3.9 | |||||||||||
Venezuela operations(b) | — | (1.5 | ) | — | (2.4 | ) | — | (3.9 | ) | ||||||||
Reorganization and Restructuring(b) | 1.0 | 1.2 | 2.6 | 1.5 | 3.6 | 2.7 | |||||||||||
Acquisitions and dispositions(b) | 1.7 | 3.1 | 1.1 | 6.2 | 2.8 | 9.3 | |||||||||||
Tax on accelerated income(e) | — | 0.5 | — | (0.2 | ) | — | 0.3 | ||||||||||
Reporting compliance(b) | 0.1 | 0.3 | 0.1 | 0.3 | |||||||||||||
Income tax rate adjustment(c) | 5.8 | 3.0 | 3.8 | (4.1 | ) | 9.6 | (1.1 | ) | |||||||||
Non-GAAP | 20.1 | 19.6 | $ | 21.9 | 21.9 | 42.0 | 41.5 |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In millions, except for percentages and per share amounts) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income (loss) attributable to noncontrolling interests: | |||||||||||||||||
GAAP | 0.8 | 3.2 | $ | 1.5 | 0.3 | 2.3 | 3.5 | ||||||||||
Venezuela operations(b) | — | (0.6 | ) | — | 1.6 | — | 1.0 | ||||||||||
Reorganization and Restructuring(b) | — | (0.1 | ) | — | (0.1 | ) | |||||||||||
Income tax rate adjustment(c) | — | (0.4 | ) | — | (0.1 | ) | — | (0.5 | ) | ||||||||
Non-GAAP | 0.8 | 2.2 | $ | 1.5 | 1.7 | 2.3 | 3.9 | ||||||||||
Income (loss) from continuing operations attributable to Brink's: | |||||||||||||||||
GAAP | 13.7 | 22.1 | $ | 12.6 | (107.8 | ) | 26.3 | (85.7 | ) | ||||||||
Retirement plans(d) | 6.5 | 6.9 | 4.9 | 6.1 | 11.4 | 13.0 | |||||||||||
Venezuela operations(b)(f) | 0.5 | 0.5 | 0.4 | 3.0 | 0.9 | 3.5 | |||||||||||
Reorganization and Restructuring(b) | 2.5 | 2.5 | 8.0 | 3.1 | 10.5 | 5.6 | |||||||||||
Acquisitions and dispositions(b) | 17.0 | 6.5 | 23.0 | 3.8 | 40.0 | 10.3 | |||||||||||
Tax on accelerated income(e) | — | (0.5 | ) | — | 0.2 | — | (0.3 | ) | |||||||||
Argentina highly inflationary impact(b) | 4.3 | — | 0.1 | — | 4.4 | — | |||||||||||
Reporting compliance(b) | 1.4 | — | 2.8 | 1.1 | 4.2 | 1.1 | |||||||||||
Gain on lease termination(g) | (5.2 | ) | — | (5.2 | ) | — | |||||||||||
Loss on deconsolidation of Venezuela operations(f) | — | 126.7 | — | 126.7 | |||||||||||||
Income tax rate adjustment(c) | (5.8 | ) | (2.6 | ) | (3.8 | ) | 4.2 | (9.6 | ) | 1.6 | |||||||
Non-GAAP | 40.1 | 35.4 | $ | 42.8 | 40.4 | 82.9 | 75.8 | ||||||||||
Diluted EPS: | |||||||||||||||||
GAAP | 0.27 | 0.42 | $ | 0.25 | (2.11 | ) | 0.52 | (1.68 | ) | ||||||||
Retirement plans(d) | 0.13 | 0.13 | 0.10 | 0.12 | 0.22 | 0.25 | |||||||||||
Venezuela operations(b)(f) | 0.01 | 0.01 | 0.01 | 0.06 | 0.02 | 0.07 | |||||||||||
Reorganization and Restructuring(b) | 0.05 | 0.05 | 0.16 | 0.06 | 0.21 | 0.11 | |||||||||||
Acquisitions and dispositions(b) | 0.33 | 0.12 | 0.45 | 0.07 | 0.79 | 0.20 | |||||||||||
Tax on accelerated income(e) | — | (0.01 | ) | — | — | — | (0.01 | ) | |||||||||
Argentina highly inflationary impact(b) | 0.09 | — | — | — | 0.09 | — | |||||||||||
Reporting compliance(b) | 0.03 | — | 0.06 | 0.02 | 0.08 | 0.02 | |||||||||||
Gain on lease termination(g) | (0.10 | ) | — | (0.10 | ) | — | |||||||||||
Loss on deconsolidation of Venezuela operations(f) | — | 2.43 | — | 2.43 | |||||||||||||
Income tax rate adjustment(c) | (0.11 | ) | (0.05 | ) | (0.07 | ) | 0.08 | (0.19 | ) | 0.03 | |||||||
Share adjustment(h) | — | 0.04 | — | 0.04 | |||||||||||||
Non-GAAP | 0.79 | 0.68 | $ | 0.84 | 0.78 | 1.63 | 1.45 |
Three Months Ended March 31, | $ | Six Months Ended June 30, | $ | |||||||||||||||
(In millions) | 2019 | 2018 | change | 2019 | 2018 | change | ||||||||||||
Cash flows from operating activities | ||||||||||||||||||
Operating activities - GAAP | $ | (38.0 | ) | 56.8 | (94.8 | ) | $ | 23.9 | 109.1 | (85.2 | ) | |||||||
Venezuela operations | — | 0.4 | (0.4 | ) | — | (0.4 | ) | 0.4 | ||||||||||
(Increase) decrease in restricted cash held for customers | 36.8 | (44.0 | ) | 80.8 | 29.5 | (4.4 | ) | 33.9 | ||||||||||
(Increase) decrease in certain customer obligations(a) | (11.3 | ) | 0.5 | (11.8 | ) | (7.0 | ) | (5.7 | ) | (1.3 | ) | |||||||
Operating activities - non-GAAP | $ | (12.5 | ) | 13.7 | (26.2 | ) | $ | 46.4 | 98.6 | (52.2 | ) |
(a) | To adjust for the change in the balance of customer obligations related to cash received and processed in certain of our secure cash management services operations. The title to this cash transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the management of our liquidity and capital resources. |
Three Months Ended March 31, | $ | Six Months Ended June 30, | $ | |||||||||||||||
(In millions) | 2019 | 2018 | change | 2019 | 2018 | change | ||||||||||||
Cash flows from investing activities | ||||||||||||||||||
Capital expenditures | $ | (35.2 | ) | (36.7 | ) | 1.5 | $ | (73.1 | ) | (73.3 | ) | 0.2 | ||||||
Acquisitions, net of cash acquired | (129.9 | ) | — | (129.9 | ) | (167.0 | ) | — | (167.0 | ) | ||||||||
Dispositions, net of cash disposed | — | 9.6 | (9.6 | ) | ||||||||||||||
Marketable securities: | ||||||||||||||||||
Purchases | (1.1 | ) | (13.5 | ) | 12.4 | (2.2 | ) | (50.1 | ) | 47.9 | ||||||||
Sales | 0.4 | 0.5 | (0.1 | ) | 0.8 | 5.5 | (4.7 | ) | ||||||||||
Proceeds from sale of property and equipment | 1.6 | 1.1 | 0.5 | 1.9 | 1.8 | 0.1 | ||||||||||||
Other | (3.1 | ) | (0.9 | ) | (2.2 | ) | ||||||||||||
Investing activities | $ | (164.2 | ) | (48.6 | ) | (115.6 | ) | $ | (242.7 | ) | (107.4 | ) | (135.3 | ) |
Three Months Ended March 31, | $ | Full Year | Six Months Ended June 30, | $ | Full Year | |||||||||||||||||||
(In millions) | 2019 | 2018 | change | 2018 | 2019 | 2018 | change | 2018 | ||||||||||||||||
Property and equipment acquired during the period | ||||||||||||||||||||||||
Capital expenditures:(a) | ||||||||||||||||||||||||
North America | $ | 16.4 | 12.0 | 4.4 | 59.1 | $ | 33.6 | 30.3 | 3.3 | 59.1 | ||||||||||||||
South America | 9.7 | 8.1 | 1.6 | 43.3 | 19.8 | 22.4 | (2.6 | ) | 43.3 | |||||||||||||||
Rest of World | 6.8 | 6.7 | 0.1 | 37.9 | 13.8 | 13.4 | 0.4 | 37.9 | ||||||||||||||||
Corporate | 2.3 | 9.9 | (7.6 | ) | 14.8 | 5.9 | 7.2 | (1.3 | ) | 14.8 | ||||||||||||||
Capital expenditures - GAAP and non-GAAP | 35.2 | 36.7 | (1.5 | ) | 155.1 | $ | 73.1 | 73.3 | (0.2 | ) | 155.1 | |||||||||||||
Financing leases:(b) | ||||||||||||||||||||||||
North America | $ | 9.6 | 9.5 | 0.1 | 42.3 | $ | 26.3 | 21.9 | 4.4 | 42.3 | ||||||||||||||
South America | 0.3 | — | 0.3 | 9.6 | 0.9 | 5.6 | (4.7 | ) | 9.6 | |||||||||||||||
Rest of World | 2.2 | — | 2.2 | — | 3.3 | — | 3.3 | — | ||||||||||||||||
Financing leases - GAAP and non-GAAP | $ | 12.1 | 9.5 | 2.6 | 51.9 | $ | 30.5 | 27.5 | 3.0 | 51.9 | ||||||||||||||
Total: | ||||||||||||||||||||||||
North America | $ | 26.0 | 21.5 | 4.5 | 101.4 | $ | 59.9 | 52.2 | 7.7 | 101.4 | ||||||||||||||
South America | 10.0 | 8.1 | 1.9 | 52.9 | 20.7 | 28.0 | (7.3 | ) | 52.9 | |||||||||||||||
Rest of World | 9.0 | 6.7 | 2.3 | 37.9 | 17.1 | 13.4 | 3.7 | 37.9 | ||||||||||||||||
Corporate | 2.3 | 9.9 | (7.6 | ) | 14.8 | 5.9 | 7.2 | (1.3 | ) | 14.8 | ||||||||||||||
Total property and equipment acquired | 47.3 | 46.2 | 1.1 | 207.0 | $ | 103.6 | 100.8 | 2.8 | 207.0 | |||||||||||||||
Depreciation and amortization(a) | ||||||||||||||||||||||||
North America | $ | 22.1 | 15.3 | 6.8 | 72.1 | $ | 42.3 | 32.3 | 10.0 | 72.1 | ||||||||||||||
South America | 7.1 | 6.9 | 0.2 | 26.3 | 14.0 | 13.5 | 0.5 | 26.3 | ||||||||||||||||
Rest of World | 9.2 | 8.1 | 1.1 | 31.3 | 17.3 | 16.1 | 1.2 | 31.3 | ||||||||||||||||
Corporate | 2.8 | 3.0 | (0.2 | ) | 11.9 | 5.6 | 6.3 | (0.7 | ) | 11.9 | ||||||||||||||
Depreciation and amortization - non-GAAP | 41.2 | 33.3 | 7.9 | 141.6 | $ | 79.2 | 68.2 | 11.0 | 141.6 | |||||||||||||||
Venezuela | — | 0.5 | (0.5 | ) | 1.1 | — | 1.1 | (1.1 | ) | 1.1 | ||||||||||||||
Argentina highly inflationary impact | 0.2 | — | 0.2 | — | 0.5 | — | 0.5 | — | ||||||||||||||||
Reorganization and Restructuring | 0.1 | 1.2 | (1.1 | ) | 1.9 | 0.1 | 1.4 | (1.3 | ) | 1.9 | ||||||||||||||
Acquisitions and dispositions | 3.3 | — | 3.3 | — | ||||||||||||||||||||
Amortization of intangible assets | 6.4 | 3.8 | 2.6 | 17.7 | 13.5 | 7.2 | 6.3 | 17.7 | ||||||||||||||||
Depreciation and amortization - GAAP | $ | 47.9 | 38.8 | 9.1 | 162.3 | $ | 96.6 | 77.9 | 18.7 | 162.3 |
(a) | Capital expenditures as well as depreciation and amortization related to Venezuela have been excluded from South America. In addition, incremental depreciation related to highly inflationary accounting in Argentina, accelerated depreciation related to |
(b) | Represents the amount of property and equipment acquired using financing leases. Because the assets are acquired without using cash, the acquisitions are not reflected in the condensed consolidated cash flow statement. Amounts are provided here to assist in the comparison of assets acquired in the current year versus prior years. |
Three Months Ended March 31, | $ | Six Months Ended June 30, | $ | |||||||||||||||
(In millions) | 2019 | 2018 | change | 2019 | 2018 | change | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||
Borrowings and repayments: | ||||||||||||||||||
Short-term borrowings | $ | (5.5 | ) | 16.1 | (21.6 | ) | $ | 0.1 | 10.5 | (10.4 | ) | |||||||
Cash supply chain customer debt | — | 0.9 | (0.9 | ) | — | (11.7 | ) | 11.7 | ||||||||||
Long-term revolving credit facilities, net | (192.7 | ) | — | (192.7 | ) | (130.6 | ) | — | (130.6 | ) | ||||||||
Other long-term debt, net | 325.2 | (11.7 | ) | 336.9 | 309.5 | (25.9 | ) | 335.4 | ||||||||||
Borrowings (repayments) | 127.0 | 5.3 | 121.7 | 179.0 | (27.1 | ) | 206.1 | |||||||||||
Debt financing costs | (4.0 | ) | — | (4.0 | ) | |||||||||||||
Dividends to: | ||||||||||||||||||
Shareholders of Brink’s | (7.4 | ) | (7.6 | ) | 0.2 | (14.9 | ) | (15.2 | ) | 0.3 | ||||||||
Noncontrolling interests in subsidiaries | — | (0.7 | ) | 0.7 | (0.2 | ) | (1.9 | ) | 1.7 | |||||||||
Acquisition-related financing activities: | ||||||||||||||||||
Payment of acquisition-related obligation | (1.5 | ) | — | (1.5 | ) | |||||||||||||
Proceeds from exercise of stock options | — | 0.8 | (0.8 | ) | ||||||||||||||
Tax withholdings associated with share-based compensation | (7.3 | ) | (11.2 | ) | 3.9 | (7.2 | ) | (11.3 | ) | 4.1 | ||||||||
Other | (5.7 | ) | 0.4 | (6.1 | ) | (1.7 | ) | 0.2 | (1.9 | ) | ||||||||
Financing activities | $ | 106.6 | (13.8 | ) | 120.4 | $ | 149.5 | (54.5 | ) | 204.0 |
March 31, | December 31, | June 30, | December 31, | |||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | ||||||||
Debt: | ||||||||||||
Short-term borrowings | $ | 23.4 | 28.9 | $ | 29.2 | 28.9 | ||||||
Long-term debt | 1,666.0 | 1,525.1 | 1,730.3 | 1,525.1 | ||||||||
Total Debt | 1,689.4 | 1,554.0 | 1,759.5 | 1,554.0 | ||||||||
Restricted cash borrowings(a) | (10.3 | ) | (10.5 | ) | (10.4 | ) | (10.5 | ) | ||||
Total Debt without restricted cash borrowings | 1,679.1 | 1,543.5 | 1,749.1 | 1,543.5 | ||||||||
Less: | ||||||||||||
Cash and cash equivalents | 283.2 | 343.4 | 304.9 | 343.4 | ||||||||
Amounts held by Cash Management Services operations(b) | (25.5 | ) | (14.1 | ) | (21.6 | ) | (14.1 | ) | ||||
Cash and cash equivalents available for general corporate purposes | 257.7 | 329.3 | 283.3 | 329.3 | ||||||||
Net Debt | $ | 1,421.4 | 1,214.2 | $ | 1,465.8 | 1,214.2 |
(a) | Restricted cash borrowings are related to cash borrowed under lending arrangements used in the process of managing customer cash supply chains, which is currently classified as restricted cash and not available for general corporate purposes. |
(b) | Title to cash received and processed in certain of our secure Cash Management Services operations transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the management of our liquidity and capital resources and in our computation of Net Debt. |
Funded Status of U.S. Retirement Plans | ||||||||||||||||||||||||||||||||||||||||||
Actual | Actual | Projected | Actual | Actual | Projected | |||||||||||||||||||||||||||||||||||||
(In millions) | 2018 | 1Q 2019 | 2-4Q 2019 | 2020 | 2021 | 2022 | 2023 | 2018 | First Half 2019 | 2nd Half 2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||||||||||||||||||||
Primary U.S. pension plan | ||||||||||||||||||||||||||||||||||||||||||
Beginning funded status | $ | (102.3 | ) | (106.8 | ) | (102.6 | ) | (94.3 | ) | (81.4 | ) | (68.0 | ) | (36.4 | ) | $ | (102.3 | ) | (106.8 | ) | (98.3 | ) | (94.3 | ) | (81.4 | ) | (68.0 | ) | (36.4 | ) | ||||||||||||
Net periodic pension credit(a) | 22.0 | 4.2 | 12.7 | 15.7 | 15.4 | 15.7 | 16.6 | 22.0 | 8.5 | 8.4 | 15.7 | 15.4 | 15.7 | 16.6 | ||||||||||||||||||||||||||||
Payment from Brink’s | — | — | — | — | — | 17.3 | 28.3 | — | — | — | — | — | 17.3 | 28.3 | ||||||||||||||||||||||||||||
Benefit plan experience loss | (26.5 | ) | — | (4.4 | ) | (2.8 | ) | (2.0 | ) | (1.4 | ) | (0.1 | ) | (26.5 | ) | — | (4.4 | ) | (2.8 | ) | (2.0 | ) | (1.4 | ) | (0.1 | ) | ||||||||||||||||
Ending funded status | $ | (106.8 | ) | (102.6 | ) | (94.3 | ) | (81.4 | ) | (68.0 | ) | (36.4 | ) | 8.4 | $ | (106.8 | ) | (98.3 | ) | (94.3 | ) | (81.4 | ) | (68.0 | ) | (36.4 | ) | 8.4 | ||||||||||||||
UMWA plans | ||||||||||||||||||||||||||||||||||||||||||
Beginning funded status | $ | (294.3 | ) | (297.4 | ) | (298.3 | ) | (304.1 | ) | (311.8 | ) | (320.7 | ) | (330.8 | ) | $ | (294.3 | ) | (297.4 | ) | (297.8 | ) | (301.4 | ) | (309.1 | ) | (318.0 | ) | (328.1 | ) | ||||||||||||
Net periodic postretirement cost(a) | (0.4 | ) | (1.7 | ) | (5.0 | ) | (7.7 | ) | (8.9 | ) | (10.1 | ) | (11.5 | ) | (0.4 | ) | (2.5 | ) | (1.5 | ) | (7.7 | ) | (8.9 | ) | (10.1 | ) | (11.5 | ) | ||||||||||||||
Benefit plan experience loss | (1.4 | ) | — | — | — | — | — | — | (1.4 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other | (1.3 | ) | 0.8 | (0.8 | ) | — | — | — | — | (1.3 | ) | 2.1 | (2.1 | ) | — | — | — | — | ||||||||||||||||||||||||
Ending funded status | $ | (297.4 | ) | (298.3 | ) | (304.1 | ) | (311.8 | ) | (320.7 | ) | (330.8 | ) | (342.3 | ) | $ | (297.4 | ) | (297.8 | ) | (301.4 | ) | (309.1 | ) | (318.0 | ) | (328.1 | ) | (339.6 | ) | ||||||||||||
Black lung plans | ||||||||||||||||||||||||||||||||||||||||||
Beginning funded status | $ | (67.0 | ) | (67.9 | ) | (66.4 | ) | (63.0 | ) | (58.3 | ) | (54.0 | ) | (50.0 | ) | $ | (67.0 | ) | (67.9 | ) | (65.5 | ) | (63.3 | ) | (58.6 | ) | (54.3 | ) | (50.3 | ) | ||||||||||||
Net periodic postretirement cost(a) | (2.5 | ) | (0.7 | ) | (2.0 | ) | (2.4 | ) | (2.3 | ) | (2.2 | ) | (1.9 | ) | (2.5 | ) | (1.5 | ) | (1.5 | ) | (2.4 | ) | (2.3 | ) | (2.2 | ) | (1.9 | ) | ||||||||||||||
Payment from Brink’s | 8.1 | 2.2 | 5.4 | 7.1 | 6.6 | 6.2 | 5.7 | 8.1 | 3.9 | 3.7 | 7.1 | 6.6 | 6.2 | 5.7 | ||||||||||||||||||||||||||||
Benefit plan experience loss | (6.5 | ) | — | — | — | — | — | — | (6.5 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Ending funded status | $ | (67.9 | ) | (66.4 | ) | (63.0 | ) | (58.3 | ) | (54.0 | ) | (50.0 | ) | (46.2 | ) | $ | (67.9 | ) | (65.5 | ) | (63.3 | ) | (58.6 | ) | (54.3 | ) | (50.3 | ) | (46.5 | ) |
(a) | Excludes amounts reclassified from accumulated other comprehensive income (loss). |
Actual | Actual | Projected | Actual | Actual | Projected | |||||||||||||||||||||||||||||||||||||||||||
(In millions) | 2018 | 1Q 2019 | 2-4Q 2019 | FY2019 | 2020 | 2021 | 2022 | 2023 | 2018 | First Half 2019 | 2nd Half 2019 | FY2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||||||||||||||||||||||||
Primary U.S. pension plan | $ | 5.5 | 0.7 | 2.0 | 2.7 | 5.5 | 5.2 | 4.3 | 4.0 | $ | 5.5 | 1.3 | 1.3 | 2.6 | 5.5 | 5.2 | 4.3 | 4.0 | ||||||||||||||||||||||||||||||
UMWA plans | 16.1 | 5.7 | 16.9 | 22.6 | 22.6 | 22.9 | 23.2 | 23.7 | 16.1 | 9.1 | 6.8 | 15.9 | 22.6 | 22.9 | 23.2 | 23.7 | ||||||||||||||||||||||||||||||||
Black lung plans | 9.8 | 1.8 | 5.2 | 7.0 | 6.6 | 6.2 | 5.7 | 5.3 | 9.8 | 3.6 | 3.8 | 7.4 | 6.6 | 6.2 | 5.7 | 5.3 | ||||||||||||||||||||||||||||||||
Total | $ | 31.4 | 8.2 | 24.1 | 32.3 | 34.7 | 34.3 | 33.2 | 33.0 | $ | 31.4 | 14.0 | 11.9 | 25.9 | 34.7 | 34.3 | 33.2 | 33.0 |
Actual | Actual | Projected | Actual | Actual | Projected | |||||||||||||||||||||||||||||||||||||||||||
(In millions) | 2018 | 1Q 2019 | 2-4Q 2019 | FY2019 | 2020 | 2021 | 2022 | 2023 | 2018 | First Half 2019 | 2nd Half 2019 | FY2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||||||||||||||||||||||||
Payments from Brink’s to U.S. Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
Primary U.S. pension plan | $ | — | — | — | — | — | — | 17.3 | 28.3 | $ | — | — | — | — | — | — | 17.3 | 28.3 | ||||||||||||||||||||||||||||||
Black lung plans | 8.1 | 2.2 | 5.4 | 7.6 | 7.1 | 6.6 | 6.2 | 5.7 | 8.1 | 3.9 | 3.7 | 7.6 | 7.1 | 6.6 | 6.2 | 5.7 | ||||||||||||||||||||||||||||||||
Total | $ | 8.1 | 2.2 | 5.4 | 7.6 | 7.1 | 6.6 | 23.5 | 34.0 | $ | 8.1 | 3.9 | 3.7 | 7.6 | 7.1 | 6.6 | 23.5 | 34.0 | ||||||||||||||||||||||||||||||
Payments from U.S. Plans to participants | ||||||||||||||||||||||||||||||||||||||||||||||||
Primary U.S. pension plan | $ | 48.3 | 12.0 | 39.0 | 51.0 | 51.1 | 51.1 | 51.0 | 51.0 | $ | 48.3 | 24.1 | 26.9 | 51.0 | 51.1 | 51.1 | 51.0 | 51.0 | ||||||||||||||||||||||||||||||
UMWA plans | 28.6 | 6.5 | 27.0 | 33.5 | 33.6 | 33.6 | 34.2 | 34.0 | 28.6 | 15.6 | 17.9 | 33.5 | 33.6 | 33.6 | 34.2 | 34.0 | ||||||||||||||||||||||||||||||||
Black lung plans | 8.1 | 2.2 | 5.4 | 7.6 | 7.1 | 6.6 | 6.2 | 5.7 | 8.1 | 3.9 | 3.7 | 7.6 | 7.1 | 6.6 | 6.2 | 5.7 | ||||||||||||||||||||||||||||||||
Total | $ | 85.0 | 20.7 | 71.4 | 92.1 | 91.8 | 91.3 | 91.4 | 90.7 | $ | 85.0 | 43.6 | 48.5 | 92.1 | 91.8 | 91.3 | 91.4 | 90.7 |
Period | (a) Total Number of Shares Purchased(1) | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||||
January 1 through | ||||||||||||||
January 31, 2019 | — | $ | — | — | $ | — | ||||||||
February 1 through | ||||||||||||||
February 28, 2019 | 37,387 | (2) | 37,387 | — | ||||||||||
March 1 through | ||||||||||||||
March 31, 2019 | — | — | — | — |
Period | (a) Total Number of Shares Purchased(1) | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||||
April 1 through | ||||||||||||||
April 30, 2019 | — | $ | — | — | $ | — | ||||||||
May 1 through | ||||||||||||||
May 31, 2019 | — | — | — | — | ||||||||||
June 1 through | ||||||||||||||
June 30, 2019 | — | — | — | — |
(1) | On May 8, 2017, the Company’s board of directors authorized the Company to repurchase up to |
10.1 | |
10.2 | |
31.1 | |
31.2 | |
32.1 | |
32.2 | |
101 | Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended Attached as Exhibit 101 to this report are the following documents formatted in |
THE BRINK’S COMPANY | |
By: /s/ Ronald J. Domanico | |
Ronald J. Domanico | |
(Executive Vice President and | |
Chief Financial Officer) | |
(principal financial officer) |