Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 21, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-09148 | |
Entity Registrant Name | BRINKS CO | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1317776 | |
Entity Address, Address Line One | 1801 Bayberry Court | |
Entity Address, City or Town | Richmond | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23226 | |
City Area Code | 804 | |
Local Phone Number | 289-9600 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Trading Symbol | BCO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 50,024,922 | |
Document Fiscal Year Focus | 2019 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000078890 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 337 | $ 343.4 |
Restricted cash | 89.2 | 136.1 |
Accounts receivable, net | 653.1 | 599.5 |
Prepaid expenses and other | 166.8 | 127.5 |
Total current assets | 1,246.1 | 1,206.5 |
Right-of-use assets, net | 269.3 | 0 |
Property and equipment, net | 718.1 | 699.4 |
Goodwill | 776 | 678.6 |
Other intangibles | 273.2 | 228.9 |
Deferred income taxes | 236.3 | 236.5 |
Other | 183.6 | 186.1 |
Total assets | 3,702.6 | 3,236 |
Current liabilities: | ||
Short-term borrowings | 15.4 | 28.9 |
Current maturities of long-term debt | 73.7 | 53.5 |
Accounts payable | 169 | 174.6 |
Accrued liabilities | 592 | 502.1 |
Restricted cash held for customers | 38.5 | 90.3 |
Total current liabilities | 888.6 | 849.4 |
Long-term debt | 1,660.8 | 1,471.6 |
Accrued pension costs | 184.5 | 196.9 |
Retirement benefits other than pensions | 365.5 | 366.1 |
Lease liabilities | 217.9 | 0 |
Deferred income taxes | 15.2 | 16.7 |
Other | 184.9 | 168.7 |
Total liabilities | 3,517.4 | 3,069.4 |
Commitments and contingent liabilities (notes 4, 8 and 14) | ||
The Brink's Company (Brink's) shareholders: | ||
Shares issued and outstanding: 2019 - 50.0; 2018 - 49.7 | 50 | 49.7 |
Capital in excess of par value | 656.6 | 628.2 |
Retained earnings | 467.5 | 429.1 |
Accumulated other comprehensive loss | (1,004.9) | (953.3) |
Brink’s shareholders | 169.2 | 153.7 |
Noncontrolling interests | 16 | 12.9 |
Total equity | 185.2 | 166.6 |
Total liabilities and equity | $ 3,702.6 | $ 3,236 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Par value (in dollars per share) | $ 1 | $ 1 |
Shares authorized (in shares) | 100,000,000 | 100,000,000 |
Shares issued (in shares) | 50,000,000 | 49,700,000 |
Shares outstanding (in shares) | 50,000,000 | 49,700,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Income Statement [Abstract] | |||||
Revenues | $ 928.4 | $ 852.4 | $ 2,747.4 | $ 2,581.2 | |
Costs and expenses: | |||||
Cost of revenues | 714.4 | 652.6 | 2,125.6 | 2,013 | |
Selling, general and administrative expenses | 155 | 125.4 | 451.3 | 368.4 | |
Total costs and expenses | 869.4 | 778 | 2,576.9 | 2,381.4 | |
Other operating income (expense) | (6.5) | (7.4) | (7) | (6.3) | |
Operating profit | 52.5 | 67 | 163.5 | 193.5 | |
Interest expense | (22.9) | (17) | (68.6) | (47.8) | |
Loss on deconsolidation of Venezuela operations | 0 | 0 | 0 | (126.7) | |
Interest and other nonoperating income (expense) | (7.8) | (8.1) | (22.1) | (29.3) | |
Income (loss) from continuing operations before tax | 21.8 | 41.9 | 72.8 | (10.3) | |
Provision for income taxes | 14.7 | 23 | 37.1 | 53 | |
Income (loss) from continuing operations | 7.1 | 18.9 | 35.7 | (63.3) | |
Loss from discontinued operations, net of tax | (0.4) | (0.1) | (0.5) | 0 | |
Net income (loss) | 6.7 | 18.8 | 35.2 | (63.3) | |
Less net income attributable to noncontrolling interests | 1.3 | 1.4 | 3.6 | 4.9 | |
Net income (loss) attributable to Brink’s | 5.4 | 17.4 | 31.6 | (68.2) | |
Amounts attributable to Brink’s | |||||
Continuing operations | 5.8 | 17.5 | 32.1 | (68.2) | |
Discontinued operations | (0.4) | (0.1) | (0.5) | 0 | |
Net income (loss) attributable to Brink’s | $ 5.4 | $ 17.4 | $ 31.6 | $ (68.2) | |
Basic: | |||||
Continuing operations (dollars per share) | [1] | $ 0.11 | $ 0.34 | $ 0.64 | $ (1.34) |
Discontinued operations (dollars per share) | [1] | (0.01) | 0 | (0.01) | 0 |
Net income (loss) (dollars per share) | [1] | 0.11 | 0.34 | 0.63 | (1.34) |
Diluted: | |||||
Continuing operations (dollars per share) | [1] | 0.11 | 0.34 | 0.63 | (1.34) |
Discontinued operations (dollars per share) | [1] | (0.01) | 0 | (0.01) | 0 |
Net income (loss) (dollars per share) | [1] | $ 0.10 | $ 0.34 | $ 0.62 | $ (1.34) |
Weighted-average shares | |||||
Basic (shares) | 50.3 | 51.1 | 50.2 | 51 | |
Diluted (shares) | 51.1 | 52 | 51 | 51 | |
Cash dividends paid per common share (dollars per share) | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.45 | |
[1] | Amounts may not add due to rounding. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 6.7 | $ 18.8 | $ 35.2 | $ (63.3) |
Benefit plan adjustments: | ||||
Benefit plan actuarial gains | 9.2 | 13.5 | 29.5 | 51.2 |
Benefit plan prior service credits (costs) | (1.2) | (0.9) | (3.7) | (0.6) |
Deferred profit sharing | (0.1) | (0.1) | (0.2) | (0.1) |
Total benefit plan adjustments | 8.1 | 12.7 | 26 | 50.7 |
Foreign currency translation adjustments | (34.9) | (0.6) | (25.2) | (31.4) |
Gains (losses) on cash flow hedges | (3.9) | 0 | (22.4) | 0.6 |
Other comprehensive income (loss) before tax | (30.7) | 12.1 | (21.6) | 19.9 |
Provision for income taxes | 0.7 | 3.1 | 0.5 | 10.1 |
Other comprehensive income (loss) | (31.4) | 9 | (22.1) | 9.8 |
Comprehensive income (loss) | (24.7) | 27.8 | 13.1 | (53.5) |
Less comprehensive income attributable to noncontrolling interests | 1.6 | 1.4 | 4.3 | 5 |
Comprehensive income (loss) attributable to Brink's | $ (26.3) | $ 26.4 | $ 8.8 | $ (58.5) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | |
Beginning balance at Dec. 31, 2017 | $ 338.2 | $ 50.5 | $ 628.6 | $ 564.9 | $ (926.6) | $ 20.8 | |
Beginning balance, Shares at Dec. 31, 2017 | 50.5 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 25.5 | 22.3 | 3.2 | ||||
Other comprehensive income | 12.2 | 11.1 | 1.1 | ||||
Dividends to: | |||||||
Brink’s common shareholders | (7.6) | (7.6) | |||||
Noncontrolling interests | (0.7) | (0.7) | |||||
Stock options and awards | |||||||
Compensation expense | 6.8 | 6.8 | |||||
Other share-based benefit transactions | (10.1) | $ 0.4 | (10.5) | ||||
Other share-based benefit transactions, shares | 0.4 | ||||||
Ending balance at Mar. 31, 2018 | 366.5 | $ 50.9 | 624.9 | 582.9 | (916.6) | 24.4 | |
Ending balance, Shares at Mar. 31, 2018 | 50.9 | ||||||
Beginning balance at Dec. 31, 2017 | 338.2 | $ 50.5 | 628.6 | 564.9 | (926.6) | 20.8 | |
Beginning balance, Shares at Dec. 31, 2017 | 50.5 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | (63.3) | ||||||
Other comprehensive income | 9.8 | 9.7 | |||||
Ending balance at Sep. 30, 2018 | 244.8 | $ 50.6 | 633.9 | 456.7 | (918) | 21.6 | |
Ending balance, Shares at Sep. 30, 2018 | 50.6 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of change in accounting principle | [1] | 2.2 | 3.3 | (1.1) | |||
Beginning balance at Mar. 31, 2018 | 366.5 | $ 50.9 | 624.9 | 582.9 | (916.6) | 24.4 | |
Beginning balance, Shares at Mar. 31, 2018 | 50.9 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | (107.6) | (107.9) | 0.3 | ||||
Other comprehensive income | (11.4) | (10.4) | (1) | ||||
Dividends to: | |||||||
Brink’s common shareholders | (7.6) | (7.6) | |||||
Noncontrolling interests | (1.2) | (1.2) | |||||
Stock options and awards | |||||||
Compensation expense | 5.7 | 5.7 | |||||
Consideration from exercise of stock options | 0.8 | $ 0 | 0.8 | ||||
Consideration from exercise of stock options, Shares | 0 | ||||||
Other share-based benefit transactions | 0.3 | $ 0.1 | 0.2 | ||||
Other share-based benefit transactions, shares | 0.1 | ||||||
Dispositions of noncontrolling interests | (0.4) | (0.4) | |||||
Ending balance at Jun. 30, 2018 | 245.1 | $ 51 | 631.6 | 467.4 | (927) | 22.1 | |
Ending balance, Shares at Jun. 30, 2018 | 51 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 18.8 | 17.4 | 1.4 | ||||
Other comprehensive income | 9 | 9 | 0 | ||||
Stock repurchased | (25.1) | $ (0.4) | (4.3) | (20.4) | |||
Stock repurchased, Shares | (0.4) | ||||||
Dividends to: | |||||||
Brink’s common shareholders | (7.7) | (7.7) | |||||
Noncontrolling interests | (1.9) | (1.9) | |||||
Stock options and awards | |||||||
Compensation expense | 6.3 | 6.3 | |||||
Other share-based benefit transactions | 0.3 | $ 0 | 0.3 | ||||
Other share-based benefit transactions, shares | 0 | ||||||
Ending balance at Sep. 30, 2018 | 244.8 | $ 50.6 | 633.9 | 456.7 | (918) | 21.6 | |
Ending balance, Shares at Sep. 30, 2018 | 50.6 | ||||||
Beginning balance at Dec. 31, 2018 | 166.6 | $ 49.7 | 628.2 | 429.1 | (953.3) | 12.9 | |
Beginning balance, Shares at Dec. 31, 2018 | 49.7 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 14.5 | 13.7 | 0.8 | ||||
Other comprehensive income | 2.2 | 1.9 | 0.3 | ||||
Stock repurchased | 0 | $ 0 | (0.5) | 0.5 | |||
Stock repurchased, Shares | 0 | ||||||
Dividends to: | |||||||
Brink’s common shareholders | (7.4) | (7.4) | |||||
Stock options and awards | |||||||
Compensation expense | 9.4 | 9.4 | |||||
Other share-based benefit transactions | (6) | $ 0.2 | (6.2) | ||||
Other share-based benefit transactions, shares | 0.2 | ||||||
Ending balance at Mar. 31, 2019 | 179.3 | $ 49.9 | 630.9 | 464.7 | (980.2) | 14 | |
Ending balance, Shares at Mar. 31, 2019 | 49.9 | ||||||
Beginning balance at Dec. 31, 2018 | 166.6 | $ 49.7 | 628.2 | 429.1 | (953.3) | 12.9 | |
Beginning balance, Shares at Dec. 31, 2018 | 49.7 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 35.2 | ||||||
Other comprehensive income | (22.1) | (22.8) | |||||
Ending balance at Sep. 30, 2019 | 185.2 | $ 50 | 656.6 | 467.5 | (1,004.9) | 16 | |
Ending balance, Shares at Sep. 30, 2019 | 50 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of change in accounting principle | 0 | 28.8 | (28.8) | ||||
Beginning balance at Mar. 31, 2019 | 179.3 | $ 49.9 | 630.9 | 464.7 | (980.2) | 14 | |
Beginning balance, Shares at Mar. 31, 2019 | 49.9 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 14 | 12.5 | 1.5 | ||||
Other comprehensive income | 7.1 | 7 | 0.1 | ||||
Dividends to: | |||||||
Brink’s common shareholders | (7.5) | (7.5) | |||||
Noncontrolling interests | (0.2) | (0.2) | |||||
Stock options and awards | |||||||
Compensation expense | 16.7 | 16.7 | |||||
Other share-based benefit transactions | 0.2 | $ 0.1 | 0.1 | ||||
Other share-based benefit transactions, shares | 0.1 | ||||||
Capital contributions from noncontrolling interest | 0.1 | 0.1 | |||||
Ending balance at Jun. 30, 2019 | 209.7 | $ 50 | 647.7 | 469.7 | (973.2) | 15.5 | |
Ending balance, Shares at Jun. 30, 2019 | 50 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 6.7 | 5.4 | 1.3 | ||||
Other comprehensive income | (31.4) | (31.7) | 0.3 | ||||
Dividends to: | |||||||
Brink’s common shareholders | (7.5) | (7.5) | |||||
Noncontrolling interests | (1.2) | (1.2) | |||||
Stock options and awards | |||||||
Compensation expense | 9.8 | 9.8 | |||||
Other share-based benefit transactions | (1) | $ 0 | (0.9) | (0.1) | |||
Other share-based benefit transactions, shares | 0 | ||||||
Capital contributions from noncontrolling interest | 0.1 | 0.1 | |||||
Ending balance at Sep. 30, 2019 | $ 185.2 | $ 50 | $ 656.6 | $ 467.5 | $ (1,004.9) | $ 16 | |
Ending balance, Shares at Sep. 30, 2019 | 50 | ||||||
[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. |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Dividends to: | ||||||
Dividends (dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 35.2 | $ (63.3) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss from discontinued operations, net of tax | 0.5 | 0 |
Depreciation and amortization | 139.5 | 119.5 |
Share-based compensation expense | 35.9 | 18.8 |
Deferred income taxes | (3.6) | (18.2) |
Gains on sale of property, equipment and marketable securities | (2) | (4.2) |
Gain on business dispositions | 0 | 10.1 |
Loss on deconsolidation of Venezuela operations | 0 | (126.7) |
Impairment losses | 3.3 | 4.3 |
Retirement benefit funding less than expense: | ||
Pension | 2.6 | 6.8 |
Other than pension | 11.5 | 13.6 |
Remeasurement losses due to Argentina and Venezuela currency devaluations | 10.4 | 5.9 |
Other operating | 11.8 | 6.6 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable and income taxes receivable | (36.5) | (80) |
Accounts payable, income taxes payable and accrued liabilities | (15.4) | 53.2 |
Restricted cash held for customers | (41.8) | (0.7) |
Customer obligations | 15.4 | (4.9) |
Prepaid and other current assets | (0.8) | (20.6) |
Other | (14.2) | (4.8) |
Net cash provided by operating activities | 151.8 | 148.6 |
Cash flows from investing activities: | ||
Capital expenditures | (116) | (104) |
Acquisitions, net of cash acquired | (183.9) | (521) |
Dispositions, net of cash disposed | 0 | 8.4 |
Purchases | (2.6) | (55.9) |
Sales | 1.1 | 47.3 |
Cash proceeds from sale of property and equipment | 3 | 2.8 |
Other | 3.1 | 0.9 |
Net cash used by investing activities | (301.5) | (623.3) |
Cash flows from financing activities: | ||
Short-term borrowings | (13.1) | (5.2) |
Cash supply chain customer debt | 0 | (15) |
Borrowings | 714.3 | 350.4 |
Repayments | (836.5) | (44.2) |
Borrowings | 334.9 | 1.2 |
Repayments | (43.7) | (40.9) |
Payment of acquisition-related obligation | (4.1) | (0.3) |
Debt financing costs | 4 | 0 |
Repurchase shares of Brink's common stock | 0 | (25.1) |
Dividends to: | ||
Shareholders of Brink’s | (22.4) | (22.9) |
Noncontrolling interests in subsidiaries | (1.4) | (3.8) |
Proceeds from exercise of stock options | 0 | 0.8 |
Tax withholdings associated with share-based compensation | (8.4) | (11.3) |
Other | (2.9) | 0.6 |
Net cash provided by financing activities | 112.7 | 184.3 |
Effect of exchange rate changes on cash | (16.3) | (29.6) |
Cash, cash equivalents and restricted cash: | ||
Decrease | (53.3) | (320) |
Balance at beginning of period | 479.5 | 726.9 |
Balance at end of period | $ 426.2 | $ 406.9 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The Brink’s Company (along with its subsidiaries, “Brink’s” or “we”) has three operating segments: • North America • South America • Rest of World Our unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and applicable quarterly reporting regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes in our Annual Report on Form 10-K for the year ended December 31, 2018 . We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements. Actual results could differ materially from these estimates. The most significant estimates are related to goodwill and other long-lived assets, pension and other retirement benefit obligations, legal contingencies, allowance for doubtful accounts and deferred tax assets. Consolidation The condensed consolidated financial statements include our controlled subsidiaries. Control is determined based on ownership rights or, when applicable, based on whether we are considered to be the primary beneficiary of a variable interest entity. See "Venezuela" section below for further information. For controlled subsidiaries that are not wholly-owned, the noncontrolling interests are included in net income and in total equity. Investments in businesses that we do not control, but for which we have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method and our proportionate share of income or loss is recorded in other operating income (expense). Investments in businesses for which we do not have the ability to exercise significant influence over operating and financial policies are accounted for at fair value, if readily determinable, with changes in fair value recognized in net income. For equity investments that do not have a readily determinable fair value, we measure these investments at cost minus impairment, if any, plus or minus changes from observable price changes. All intercompany accounts and transactions have been eliminated in consolidation. Foreign Currency Translation Our condensed consolidated financial statements are reported in U.S. dollars. Our foreign subsidiaries maintain their records primarily in the currency of the country in which they operate. The method of translating local currency financial information into U.S. dollars depends on whether the economy in which our foreign subsidiary operates has been designated as highly inflationary or not. Economies with a three -year cumulative inflation rate of more than 100% are considered highly inflationary. Assets and liabilities of foreign subsidiaries in non-highly inflationary economies are translated into U.S. dollars using rates of exchange at the balance sheet date. Translation adjustments are recorded in other comprehensive income (loss). Revenues and expenses are translated at rates of exchange in effect during the year. Transaction gains and losses are recorded in net income. Foreign subsidiaries that operate in highly inflationary countries use the U.S. dollar as their functional currency. Local currency monetary assets and liabilities are remeasured into U.S. dollars using rates of exchange as of each balance sheet date, with remeasurement adjustments and other transaction gains and losses recognized in earnings. Other than nonmonetary equity securities, nonmonetary assets and liabilities do not fluctuate with changes in local currency exchange rates to the dollar. For nonmonetary equity securities traded in highly inflationary economies, the fair market value of the equity securities are remeasured at the current exchange rates to determine gain or loss to be recorded in net income. Revenues and expenses are translated at rates of exchange in effect during the year. Argentina We operate in Argentina through wholly owned subsidiaries and a smaller controlled subsidiary (together "Brink's Argentina"). Revenues from Brink's Argentina represented approximately 6% of our consolidated revenues for the first nine months of 2019 and 8% of our consolidated revenues for the first nine months of 2018. The operating environment in Argentina continues to present business challenges, including ongoing devaluation of the Argentine peso and significant inflation. In the first nine months of 2019 and 2018, the Argentine peso declined approximately 35% (from 37.6 to 57.5 pesos to the U.S. dollar) and approximately 55% (from 18.6 to 41.3 pesos to the U.S. dollar), respectively. For the year ended December 31, 2018 , the Argentine peso declined approximately 50% (from 18.6 to 37.6 pesos to the U.S. dollar). Beginning July 1, 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, we consolidated Brink's Argentina using our accounting policy for subsidiaries operating in highly inflationary economies beginning with the third quarter of 2018. Argentine peso-denominated monetary assets and liabilities are remeasured at each balance sheet date using the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In the second half of 2018, we recognized a $6.2 million pretax remeasurement loss. In the first nine months of 2019, we recognized a $10.4 million pretax remeasurement loss. At September 30, 2019 , Argentina's economy remains highly inflationary for accounting purposes. At September 30, 2019 , we had net monetary assets denominated in Argentine pesos of $25.5 million (including cash of $16.6 million ). At September 30, 2019 , we had net nonmonetary assets of $151.0 million (including $99.8 million of goodwill). At September 30, 2019 , we had no equity securities denominated in Argentine pesos. During September 2019, the Argentine government announced currency controls on both companies and individuals. The Argentine central bank issued details as to how the exchange control procedures would operate in practice. Under these procedures, central bank approval is required for many transactions, including dividend repatriation abroad. These currency control regulations will apply initially until December 31, 2019, although there can be no certainty that these regulations will not continue into 2020. Although the Argentine government has implemented currency controls impacting repatriation of funds, Brink’s management continues to provide guidance and strategic oversight, including budgeting and forecasting for Brink’s Argentina. We continue to control our Argentina business for purposes of consolidation of our financial statements and continue to monitor the situation in Argentina. Venezuela Deconsolidation . Our Venezuelan operations offer transportation and route-based logistics management services for cash and valuables throughout Venezuela. Currency exchange regulations, combined with other government regulations, such as price controls and strict labor laws, significantly limit our ability to make and execute operational decisions at our Venezuelan subsidiaries. With the May 2018 re-election of the President in Venezuela for an additional six-year term, we expect these conditions to continue for the foreseeable future. As a result of the conditions described above, we concluded that, effective June 30, 2018, we did not meet the accounting criteria for control over our Venezuelan operations and, as a result, we began reporting the results of our investment in our Venezuelan subsidiaries using the cost method of accounting. This change resulted in a pretax charge of $127 million in the second quarter of 2018. For reporting periods beginning after June 30, 2018, we have not included the operating results of our Venezuela operations. We may incur losses resulting from our Venezuelan business to the extent that we provide U.S. dollars or make future investments in our Venezuelan subsidiaries, including any additional investments made directly in our Venezuelan subsidiaries or additional costs incurred by us to address compliance with recent sanctions and other regulatory requirements imposed by the U.S. government that restrict our ability to conduct business in Venezuela. Prior to the imposition of the U.S. government sanctions, we provided immaterial amounts of financial support to our Venezuela operations in 2019 and 2018. We continue to monitor the situation in Venezuela, including the imposition of sanctions by the U.S. government targeting Venezuela. Internal loss A former non-management employee in our U.S. global services operations embezzled funds from Brink's in prior years. Except for a small deductible amount, the amount of the internal loss related to the embezzlement was covered by our insurance. In an effort to cover up the embezzlement, the former employee intentionally misstated the underlying accounts receivable subledger data. In the first nine months of 2019, we incurred $3.9 million in costs (primarily third party expenses) to reconstruct the accounts receivables subledger. In the third quarter of 2019, we were able to identify $4.0 million of revenues billed and collected in prior periods which had never been recorded in the general ledger. We also identified and recorded $0.3 million in bank fees, which had been incurred in prior periods. The rebuild of the subledger was completed during the third quarter of 2019. Based on the reconstructed subledger, we were able to analyze and quantify the uncollected receivables from prior periods. Although we plan to attempt to collect these receivables, we have estimated an increase to bad debt expense of $13.7 million , which we recorded in the third quarter of 2019. Out of the $13.7 million in bad debt expense, $12.6 million represents an allowance on $25.3 million of accounts receivable generated prior to 2018. The estimate of the allowance for doubtful accounts will be adjusted in future periods, if needed, as assumptions related to the collectability of these accounts receivable change. The impact of the bad debt expense ( $13.7 million ) and bank fees ( $0.3 million ), partially offset by the revenue adjustment ( $4.0 million ), net to a $10.0 million cumulative accounting error which was corrected in the third quarter of 2019. We have concluded that the impact of this accounting error was not material to the current or any prior period financial statements. Due to the unusual nature of this internal loss and the related errors in the subledger data, along with the fact that management has excluded these amounts when evaluating internal performance, we have excluded these net charges from segment results. New Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue From Contracts with Customers. Under this standard, an entity recognizes an amount of revenue to which it expects to be entitled when the transfer of goods or services to customers occurs. The standard requires expanded disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted this standard effective January 1, 2018 using the modified retrospective method and recognized a cumulative-effect adjustment increasing retained earnings by $1.5 million . The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, in January 2016. This new guidance changes the accounting related to the classification and measurement of certain equity investments. Equity investments with readily determinable fair values must be measured at fair value. All changes in fair value will be recognized in net income as opposed to other comprehensive income. We adopted ASU 2016-01 effective January 1, 2018 and recognized a cumulative-effect adjustment increasing retained earnings by $1.1 million . In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , which changes the timing of when certain intercompany transactions are recognized within the provision for income taxes. We adopted ASU 2016-16 effective January 1, 2018 using the modified retrospective method and we recognized a cumulative-effect adjustment increasing retained earnings by $0.7 million . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires the recognition of right-of-use assets and lease liabilities by lessees for certain leases classified as operating leases and also requires expanded disclosures regarding leasing activities. The accounting for financing leases (previously "capital leases") remains substantially unchanged. We have adopted the standard effective January 1, 2019 and have elected to adopt the new standard at the adoption date through a cumulative-effect adjustment to the opening balance of retained earnings. Under this approach, we will continue to report comparative periods under ASC 840. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical lease classification. We also made an accounting policy election to exclude leases with an initial term of 12 months or less from the condensed consolidated balance sheet. We will recognize those lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. As part of this adoption, we have implemented internal controls and key system functionality to enable the preparation of financial information. The adoption of the standard resulted in recording right-of-use assets of $310.1 million and lease liabilities of $320.3 million as of January 1, 2019. The right-of-use assets are lower than the lease liabilities as existing deferred rent and lease incentive liabilities were recorded against the right-of-use assets at adoption in accordance with the standard. The standard did not affect our condensed consolidated statements of operations or our condensed consolidated statements of cash flows. The standard had no impact on our debt-covenant compliance under our current agreements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment , which eliminates the requirement that an entity perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. We early adopted this ASU effective January 1, 2019. The early adoption did not have any impact on our condensed consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities , which amends and simplifies the application of hedge accounting guidance to better portray the economic results of risk management activities in the financial statements. The guidance expands the ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, and eases certain hedge effectiveness assessment requirements. We adopted the standard effective January 1, 2019 with no significant impact on our condensed consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“Tax Reform Act”). We adopted ASU 2018-02 effective January 1, 2019 and elected to recognize a cumulative-effect adjustment increasing retained earnings by $28.8 million related to the change in the U.S. federal corporate tax rate. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , which changes the fair value measurement disclosure requirements. The guidance is effective January 1, 2020 with early adoption permitted. We are currently evaluating the potential impact of the standard on financial reporting. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the use of the current expected credit loss model. This model is based on expected, rather than incurred, losses to determine the allowance for doubtful accounts and certain net investments in leases. The guidance is effective January 1, 2020 and we are currently evaluating the potential impact of the standard on financial reporting. |
Revenue from contracts with cus
Revenue from contracts with customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from contracts with customers | Revenue from Contracts with Customers Performance Obligations We provide various services to meet the needs of our customers and we group these service offerings into three broad categories: Core Services, High-Value Services and Other Security Services. Core Services Cash-in-transit ("CIT") and ATM services are core services we provide to customers throughout the world. We charge customers per service performed or based on the value of goods transported. CIT services generally involve the secure transportation of cash, securities and other valuables between businesses, financial institutions and central banks. ATM services are generally composed of management services, including cash replenishment and forecasting, remote monitoring, transaction processing, installation and maintenance. High-Value Services Our high-value services leverage our brand, global infrastructure and core services and include cash management services, global services and payment services. We offer a variety of cash management services such as currency and coin counting and sorting, deposit preparation and reconciliation, and safe device installation and servicing (including our CompuSafe ® service). Our global services business provides secure ground, sea and air transportation and storage of highly-valued commodities including diamonds, jewelry, precious metals and other valuables. We also provide payment services which include bill payment and processing services on behalf of utility companies and other billers plus general purpose reloadable prepaid cards and payroll cards. Other Security Services Our other security services feature the protection of airports, offices, warehouses, stores, and public venues in Europe and Brazil. For performance obligations related to the services described above, we generally satisfy our obligations as each action to provide the service to the customer occurs. Because the customers simultaneously receive and consume the benefits from our services, these performance obligations are deemed to be satisfied over time. We use an output method, units of service provided, to recognize revenue because that is the best method to represent the transfer of our services to the customer at the agreed upon rate for each action. Although not as significant as our service offerings, we also sell goods to customers from time to time, such as safe devices. In those transactions, we satisfy our performance obligation at a point in time. We recognize revenue when the goods are delivered to the customer as that is the point in time that best represents when control has transferred to the customer. Our contracts with customers describe the services we can provide along with the fees for each action to provide the service. We typically send invoices to customers for all of the services we have provided within a monthly period and payments are generally due within 30 to 60 days of the invoice date. Although our customer contracts specify the fees for each action to provide service, the majority of the services stated in our contracts do not have a defined quantity over the contract term. Accordingly, the transaction price is considered variable as there is an unknown volume of services that will be rendered over the course of the contract. We recognize revenue for these services in the period in which they are provided to the customer based on the contractual rate at which we have the right to invoice the customer for each action. Some of our contracts with customers contain clauses that define the level of service that the customer will receive. The service level agreements (“SLA”) within those contracts contain specific calculations to determine whether the appropriate level of service has been met within a specific period, which is typically a month. We estimate SLA penalties and recognize the amounts as a reduction to revenue. Taxes collected from customers and remitted to governmental authorities are not included in revenues in the condensed consolidated statements of operations. Revenue Disaggregated by Reportable Segment and Type of Service (In millions) Core Services High-Value Services Other Security Services Total Three months ended September 30, 2019 Reportable Segments: North America $ 275.7 171.0 — 446.7 South America 125.6 101.1 2.3 229.0 Rest of World 87.6 126.8 34.5 248.9 Total reportable segments 488.9 398.9 36.8 924.6 Not Allocated to Segments: Acquisitions and dispositions — (0.2 ) — (0.2 ) Internal loss (a) — 4.0 — 4.0 Total $ 488.9 402.7 36.8 928.4 Three months ended September 30, 2018 Reportable Segments: North America $ 236.9 146.5 — 383.4 South America 104.3 107.9 3.3 215.5 Rest of World 88.9 128.6 36.0 253.5 Total reportable segments 430.1 383.0 39.3 852.4 Not Allocated to Segments: Venezuela — — — — Total $ 430.1 383.0 39.3 852.4 Nine months ended September 30, 2019 Reportable Segments: North America $ 832.7 491.0 — 1,323.7 South America 363.6 313.2 7.7 684.5 Rest of World 263.7 370.5 101.5 735.7 Total reportable segments 1,460.0 1,174.7 109.2 2,743.9 Not Allocated to Segments: Acquisitions and dispositions — (0.5 ) — (0.5 ) Internal loss (a) — 4.0 — 4.0 Total $ 1,460.0 1,178.2 109.2 2,747.4 Nine months ended September 30, 2018 Reportable Segments: North America $ 616.7 410.8 — 1,027.5 South America 343.6 350.6 9.4 703.6 Rest of World 270.8 387.9 140.0 798.7 Total reportable segments 1,231.1 1,149.3 149.4 2,529.8 Not Allocated to Segments: Venezuela 18.4 33.0 — 51.4 Total $ 1,249.5 1,182.3 149.4 2,581.2 (a) See details regarding the Internal loss and the impact on revenues in Note 1. The majority of our revenues from contracts with customers are earned by providing services and these performance obligations are satisfied over time. Smaller amounts of revenues are earned from selling goods, such as safes, to customers where the performance obligations are satisfied at a point in time. Certain of our high-value services involve the leasing of assets, such as safes, to our customers along with the regular servicing of those safe devices. Revenues related to the leasing of these assets are recognized in accordance with applicable lease guidance (ASC 842 beginning in 2019 and ASC 840 prior to 2019), but are included in the above table as the amounts are a small percentage of overall revenues. Contract Balances Contract Asset Although payment terms and conditions can vary, for the majority of our customer contracts, we invoice for all of the services provided to the customer within a monthly period. For certain customer contracts, the timing of our performance may precede our right to invoice the customer for the total transaction price. For example, Brink's affiliates in certain countries, primarily in South America, negotiate annual price adjustments with certain customers and, once the price increases are finalized, the pricing changes are made retroactive to services provided in earlier periods. These retroactive pricing adjustments are estimated and recognized as revenue with a corresponding contract asset in the same period in which the related services are performed. As the estimate of the ultimate transaction price changes, we recognize a cumulative catch-up adjustment for the change in estimate. Contract Liability For other customer contracts, we may obtain the right to payment or receive customer payments prior to performing the related services under the contract. When the right to customer payments or receipt of payments precedes our performance, we recognize a contract liability. The opening and closing balances of receivables, contract assets and contract liabilities related to contracts with customers are as follows: (In millions) Receivables Contract Asset Contract Liability Opening (January 1, 2019) $ 599.5 1.8 2.5 Closing (September 30, 2019) 653.1 2.3 8.9 Increase (decrease) $ 53.6 0.5 6.4 The amount of revenue recognized in the nine months ended September 30, 2019 that was included in the January 1, 2019 contract liability balance was $2.5 million . This revenue consists of services provided to customers who had prepaid for those services prior to the current year. The majority of the increase in the contract liability balance resulted from the acquisition of Balance Innovations, LLC in the second quarter of 2019 (see Note 6). We also recognized revenue of $0.4 million in the nine months ended September 30, 2019 from performance obligations satisfied in the prior year. This amount is a result of changes in the transaction price of our contracts with customers. Contract Costs Sales commissions directly related to obtaining new contracts with customers qualify for capitalization. These capitalized costs are amortized to expense ratably over the term of the contracts. At September 30, 2019 , the net capitalized costs to obtain contracts was $1.7 million , which is included in other assets on the condensed consolidated balance sheet. Amortization expense was not significant and there were no impairment losses recognized related to these contract costs in the first nine months of 2019 . Practical Expedients For the majority of our contracts with customers, we invoice a fixed amount for each unit of service we have provided. These contracts provide us with the right to invoice for an amount or rate that corresponds to the value we have delivered to our customers. The volume of services that will be provided to customers over the term is not known at inception of these contracts. Therefore, while the rate per unit of service is known, the transaction price itself is variable. For this reason, we recognize revenue from these contracts equal to the amount for which we have the contractual right to invoice the customers. Because we are not required to estimate variable consideration related to the transaction price in order to recognize revenue, we are also not required to estimate the variable consideration to provide certain disclosures. As a result, we have elected to use the optional exemption related to the disclosure of transaction prices, amounts allocated to remaining performance obligations and the future periods in which revenue will be recognized, sometimes referred to as backlog. We have also elected to use the practical expedient for financing components related to our contract liabilities. We do not recognize interest expense on contracts for which the period between our receipt of customer payments and our service to the customer is one year or less. |
Segment information
Segment information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment information | Segment information We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. Our CODM is our President and Chief Executive Officer. Our CODM evaluates performance and allocates resources to each operating segment based on a profit or loss measure which, at the reportable segment level, excludes the following: • Corporate expenses - former non-segment and regional management costs, currency transaction gains and losses, adjustments to reconcile segment accounting policies to U.S. GAAP, and costs related to global initiatives are excluded from segment results. • Other items not allocated to segments - certain significant items such as reorganization and restructuring actions that are evaluated on an individual basis by management and are not considered part of the ongoing activities of the business are excluded from segment results. Prior to deconsolidation (see Note 1), results from Venezuela operations were also excluded from our segment results due to the Venezuelan government's restrictions that have prevented us from repatriating funds. We also exclude certain costs, gains and losses related to acquisitions and dispositions of assets and of businesses. Beginning in the third quarter of 2018, we began to consolidate Brink's Argentina using our accounting policy for subsidiaries operating in highly inflationary economies. We have excluded from our segment results the impact of highly inflationary accounting in Argentina, including currency remeasurement losses. Incremental costs (primarily third party expenses) incurred related to the mitigation of material weaknesses and the implementation and adoption of ASU 2016-02, the new lease accounting standard effective for us January 1, 2019, are excluded from segment results. We have also excluded from our segment results net charges related to an internal loss in our U.S. global services operations. The net impact includes costs incurred to reconstruct an accounts receivable subledger as well as estimated bad debt expense for uncollectible receivables, partially offset by revenue billed and collected, but not previously recorded as a result of the former non-management employee's embezzlement activities. The following table summarizes our revenues and segment profit for each of our reportable segments and reconciles these amounts to consolidated revenues and operating profit: Revenues Operating Profit Three Months Ended September 30, Three Months Ended September 30, (In millions) 2019 2018 2019 2018 Reportable Segments: North America $ 446.7 383.4 $ 38.7 33.6 South America 229.0 215.5 59.4 46.3 Rest of World 248.9 253.5 32.2 30.8 Total reportable segments 924.6 852.4 130.3 110.7 Reconciling Items: Corporate expenses: General, administrative and other expenses — — (26.2 ) (20.6 ) Foreign currency transaction gains (losses) — — (0.4 ) 0.4 Reconciliation of segment policies to GAAP — — (1.3 ) 4.8 Other items not allocated to segments: Reorganization and Restructuring — — (6.4 ) (7.3 ) Acquisitions and dispositions (0.2 ) — (24.0 ) (10.7 ) Argentina highly inflationary impact — — (7.9 ) (8.3 ) Internal loss (a) 4.0 — (11.3 ) — Reporting compliance (b) — — (0.3 ) (2.0 ) Total $ 928.4 852.4 $ 52.5 67.0 (a) See details regarding the impact of the Internal loss at Note 1. (b) Costs (primarily third party expenses) related to accounting standard implementation and material weakness mitigation. Additional information provided at page 45 . Revenues Operating Profit Nine Months Ended September 30, Nine Months Ended September 30, (In millions) 2019 2018 2019 2018 Reportable Segments: North America $ 1,323.7 1,027.5 $ 129.1 80.3 South America 684.5 703.6 147.4 148.0 Rest of World 735.7 798.7 82.2 82.6 Total reportable segments 2,743.9 2,529.8 358.7 310.9 Reconciling Items: Corporate expenses: General, administrative and other expenses — — (85.8 ) (72.6 ) Foreign currency transaction gains (losses) — — 0.2 (1.8 ) Reconciliation of segment policies to GAAP — — 2.9 6.5 Other items not allocated to segments: Venezuela operations — 51.4 — 2.3 Reorganization and Restructuring — — (20.5 ) (15.5 ) Acquisitions and dispositions (0.5 ) — (63.8 ) (24.6 ) Argentina highly inflationary impact — — (12.3 ) (8.3 ) Internal loss (a) 4.0 — (13.9 ) — Reporting compliance (b) — — (2.0 ) (3.4 ) Total $ 2,747.4 2,581.2 $ 163.5 193.5 (a) See details regarding the impact of the Internal loss at Note 1. (b) Costs (primarily third party expenses) related to accounting standard implementation and material weakness mitigation. Additional information provided at page 45 . |
Retirement benefits
Retirement benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Retirement benefits Pension plans We have various defined-benefit pension plans covering eligible current and former employees. Benefits under most plans are based on salary and years of service. The components of net periodic pension cost for our pension plans were as follows: U.S. Plans Non-U.S. Plans Total (In millions) 2019 2018 2019 2018 2019 2018 Three months ended September 30, Service cost $ — — 2.5 2.6 2.5 2.6 Interest cost on projected benefit obligation 8.5 8.0 2.6 2.5 11.1 10.5 Return on assets – expected (12.6 ) (13.4 ) (2.5 ) (2.7 ) (15.1 ) (16.1 ) Amortization of losses 4.9 6.8 1.1 1.0 6.0 7.8 Amortization of prior service credit — — (0.1 ) — (0.1 ) — Settlement loss — — 0.6 0.4 0.6 0.4 Net periodic pension cost $ 0.8 1.4 4.2 3.8 5.0 5.2 Nine months ended September 30, Service cost $ — — 7.4 8.2 7.4 8.2 Interest cost on projected benefit obligation 25.6 24.0 7.8 9.8 33.4 33.8 Return on assets – expected (38.0 ) (40.2 ) (7.7 ) (8.4 ) (45.7 ) (48.6 ) Amortization of losses 14.7 20.8 3.1 3.3 17.8 24.1 Amortization of prior service cost — — — 0.2 — 0.2 Settlement loss — — 1.5 1.4 1.5 1.4 Net periodic pension cost $ 2.3 4.6 12.1 14.5 14.4 19.1 We did not make cash contributions to the primary U.S. pension plan in 2018 or the first nine months of 2019 . Based on assumptions described in our Annual Report on Form 10-K for the year ended December 31, 2018 , we do not expect to make any additional contributions to the primary U.S. pension plan until 2022. Retirement benefits other than pensions We provide retirement healthcare benefits for eligible current and former U.S., Canadian, and Brazilian employees. Retirement benefits related to our former U.S. coal operations include medical benefits provided by the Pittston Coal Group Companies Employee Benefit Plan for United Mine Workers of America Represented Employees (the “UMWA plans”) as well as costs related to Black Lung obligations. The components of net periodic postretirement cost related to retirement benefits other than pensions were as follows: UMWA Plans Black Lung and Other Plans Total (In millions) 2019 2018 2019 2018 2019 2018 Three months ended September 30, Interest cost on accumulated postretirement benefit obligations $ 4.1 4.2 0.9 0.7 5.0 4.9 Return on assets – expected (3.4 ) (4.1 ) — — (3.4 ) (4.1 ) Amortization of losses 3.9 4.9 1.2 1.6 5.1 6.5 Amortization of prior service (credit) cost (1.2 ) (1.2 ) (0.1 ) 0.2 (1.3 ) (1.0 ) Net periodic postretirement cost $ 3.4 3.8 2.0 2.5 5.4 6.3 Nine months ended September 30, Service cost $ — — 0.1 0.1 0.1 0.1 Interest cost on accumulated postretirement benefit obligations 13.2 12.9 2.7 2.3 15.9 15.2 Return on assets – expected (10.0 ) (12.5 ) — — (10.0 ) (12.5 ) Amortization of losses 12.8 15.4 3.5 4.3 16.3 19.7 Amortization of prior service (credit) cost (3.5 ) (3.5 ) (0.3 ) 0.8 (3.8 ) (2.7 ) Net periodic postretirement cost $ 12.5 12.3 6.0 7.5 18.5 19.8 The components of net periodic pension cost and net periodic postretirement cost other than the service cost component are included in interest and other nonoperating income (expense) in the condensed consolidated statements of operations. |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Continuing operations Provision for income taxes (in millions) $ 14.7 23.0 $ 37.1 53.0 Effective tax rate 67.4 % 54.9 % 51.0 % (514.6 %) Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Tax Reform Act”) was enacted into law. The Tax Reform Act includes a reduction in the federal tax rate for corporations from 35% to 21% as of January 1, 2018, a one-time transition tax on the cumulative undistributed earnings of foreign subsidiaries as of December 31, 2017, a repeal of the corporate alternative minimum tax, and more extensive limitations on deductibility of performance-based compensation for named executive officers. Other provisions effective as of January 1, 2018, included the creation of a new U.S. minimum tax on foreign earnings called the Global Intangible Low-Taxed Income (“GILTI”) and limitations on the deductibility of interest expense. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Reform Act, the Company recorded provisional amounts as of December 31, 2017, in accordance with Staff Accounting Bulletin No. 118 ("SAB 118"). We recorded a provisional one-time non-cash charge of $92 million in the fourth quarter of 2017 to remeasure the deferred tax assets for the new rate and for other legislative changes. In the fourth quarter of 2018, we recorded a benefit of $2.3 million to reverse a component of the provisional one-time non-cash charge as a result of guidance issued by the U.S. authorities. We filed our 2017 U.S. federal income tax return in October 2018, which did not reflect a U.S. federal current tax liability for the transition tax due to our high-tax foreign income, but we recorded an incremental $1.3 million of foreign tax credits, offset with a full valuation allowance in the fourth quarter of 2018 which was in addition to the provisional $31.1 million foreign tax credit offset with a full valuation allowance related to the transition tax recorded in the fourth quarter of 2017. We did not record a current state tax liability related to the transition tax in accordance with the interpretation of existing state laws and the provisional estimates in the fourth quarter of 2017, but we recorded the state impact of the transition tax of $0.2 million when we filed our tax returns in the fourth quarter of 2018. Beginning in 2018, we accounted for GILTI, which did not reflect a U.S. federal current tax liability due to the high-tax foreign income. We adopted an accounting policy related to the provision of deferred taxes related to GILTI and determined that we would not record deferred taxes with respect to GILTI, but would instead treat GILTI as a current period cost. We did not change our assertion on the determination of which subsidiaries that we consider to be permanently invested and for which we do not expect to repatriate to the U.S. as a result of the Tax Reform Act. The accounting for the Tax Reform Act was completed in the fourth quarter of 2018 in accordance with SAB 118. 2019 Compared to U.S. Statutory Rate The effective income tax rate on continuing operations in the first nine months of 2019 was greater than the 21% U.S. statutory tax rate primarily due to the geographical mix of earnings, the seasonality of book losses for which no tax benefit can be recorded, nondeductible expenses in Mexico, taxes on cross border payments and the characterization of a French business tax as an income tax, partially offset by the tax benefits related to the distribution of share-based payments. 2018 Compared to U.S. Statutory Rate The effective income tax rate on continuing operations in the first nine months of 2018 was negative primarily due to the impact of Venezuela’s earnings and the related tax expense, including the largely nondeductible loss on the deconsolidation of the Venezuela operations. The items that cause the rate to be higher than the U.S. statutory rate include the geographical mix of earnings, the seasonality of book losses for which no tax benefit can be recorded, nondeductible expenses in Mexico, taxes on cross border payments and the characterization of a French business tax as an income tax, partially offset by the significant tax benefits related to the distribution of share-based payments and a French income tax credit. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions We account for business combinations using the acquisition method. Under the acquisition method of accounting, assets acquired and liabilities assumed from these operations are recorded at fair value on the date of acquisition. The condensed consolidated statements of operations include the results of operations for each acquired entity from the date of acquisition. Rodoban Transportes Aereos e Terrestres Ltda., Rodoban Servicos e Sistemas de Seguranca Ltda., and Rodoban Seguranca e Transporte de Valores Ltda ("Rodoban") On January 4, 2019 , we acquired 100% of the capital stock of Rodoban in Brazil for $134 million . Rodoban provides cash-in-transit, money processing and ATM services and generates annual revenues of approximately $80 million . The Rodoban business is expected to expand our operations in southeastern Brazil and will be integrated with our existing Brink's Brazil operations. Rodoban has approximately 2,900 employees, 13 branches and about 190 armored vehicles across its operations. We have provisionally estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition in the following table. The determination of estimated fair value required management to make significant estimates and assumptions. The amounts reported are considered provisional as we are completing the valuations that are required to allocate the purchase price. As a result, the allocation of the provisional purchase price may change in the future. (In millions) Estimated Fair Value at Acquisition Date Fair value of purchase consideration Cash paid through September 30, 2019 $ 135.7 Indemnification asset (1.9 ) Fair value of purchase consideration $ 133.8 Fair value of net assets acquired (a) Cash $ 1.4 Accounts receivable 9.2 Other current assets 0.5 Property and equipment, net 2.7 Intangible assets (b) 47.9 Goodwill (c) 84.3 Other noncurrent assets 5.3 Current liabilities (9.6 ) Noncurrent liabilities (7.9 ) Fair value of net assets acquired $ 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. Dunbar Armored, Inc. ("Dunbar") U.S. Cash Management business On August 13, 2018 , we acquired 100% of the shares of Dunbar for approximately $541 million . We paid cash of approximately $547 million and have a receivable from the seller of approximately $6 million related to a net working capital adjustment. The Dunbar business is being integrated with our existing Brink's U.S. operations. This acquisition has expanded our customer base in the U.S. as a result of Dunbar's focus on small-to-medium sized retailers and financial institutions. At the time of the acquisition, Dunbar had approximately 5,400 employees, 78 branches and over 1,600 armored vehicles across its operations. We estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition in the following table. The determination of estimated fair value required management to make significant estimates and assumptions. We finalized our purchase price accounting in the third quarter of 2019. As compared to our initial estimates in the period of acquisition, our fair value estimates of acquisition date intangible assets decreased approximately $20 million , acquisition date goodwill increased approximately $21 million , acquisition date other noncurrent assets increased approximately $11 million , acquisition date noncurrent liabilities increased approximately $16 million and total purchase consideration decreased approximately $6 million . There were no other significant changes to our fair value estimates of the net assets acquired for the Dunbar acquisition. (In millions) Estimated Fair Value at Acquisition Date Fair value of purchase consideration Cash paid through September 30, 2019 $ 546.8 Receivable from seller (6.3 ) Fair value of purchase consideration $ 540.5 Fair value of net assets acquired Cash $ 25.8 Accounts receivable 31.9 Other current assets 11.7 Property and equipment, net 56.6 Intangible assets (a) 162.0 Goodwill (b) 304.1 Other noncurrent assets 21.1 Current liabilities (29.5 ) Noncurrent liabilities (43.2 ) Fair value of net assets acquired $ 540.5 (a) 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). (b) 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. Other acquisitions in 2019 On June 12, 2019 , we acquired 100% of the capital stock of Balance Innovations, LLC and its wholly owned subsidiary, Balance Innovations Services, Inc. (together "BI"). BI develops and licenses software that provides real-time data to optimize operations for general retail and convenience store industries throughout the United States and Canada. This acquisition enhances our ability to deliver technology-enabled, end-to-end retail cash management services. On June 14, 2019 , we acquired 100% of the capital stock of Comercio Eletronico Facil Ltda. ("COMEF"), a Brazil-based company. COMEF offers bank correspondent services and bill payment processing and is expected to supplement our existing Brazilian payment services businesses. On September 30, 2019 , we acquired 100% of the capital stock of Transportadora de Valores del Sur Limitada and its wholly owned subsidiary, TVS Pagos, Recaudos y Procesos S.A.S. (together "TVS"). TVS provides cash in transit and money processing services in Colombia. This acquisition is expected to provide opportunities for branch consolidation and route efficiencies and position our existing Colombian business as well as TVS to more effectively service our customers. The aggregate purchase price of these three business acquisitions (BI, COMEF and TVS) was approximately $56 million . Together, these three acquired operations have approximately 1,300 employees. For these three business acquisitions (BI, COMEF and TVS), we have provisionally estimated fair values for the assets purchased and liabilities assumed as of the date of the acquisitions. These estimated amounts are aggregated in the following table. The determination of estimated fair value required management to make significant estimates and assumptions. The amounts reported are considered provisional as we are completing the valuations that are required to allocate the purchase price. As a result, the allocation of the purchase price may change in the future. (In millions) Estimated Fair Value at Acquisition Date Fair value of purchase consideration Cash paid through September 30, 2019 $ 53.4 Fair value of future payments to sellers 7.8 Contingent consideration 1.6 Indemnification asset (6.5 ) Fair value of purchase consideration $ 56.3 Fair value of net assets acquired (a) Cash $ 5.1 Accounts receivable 4.5 Property and equipment, net 7.3 Intangible assets (a) 21.6 Goodwill (b) 36.5 Other current and noncurrent assets 2.4 Current liabilities (14.8 ) Noncurrent liabilities (6.3 ) Fair value of net assets acquired $ 56.3 (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.), COMEF (Brazil) and TVS (Global Markets - South America). We expect goodwill related to BI to be deductible for tax purposes. We do not expect goodwill related to COMEF or TVS to be deductible for tax purposes. Pro forma disclosures The pro forma consolidated results of Brink’s presented below reflect a hypothetical ownership as of January 1, 2017 for the businesses we acquired during 2018 and a hypothetical ownership as of January 1, 2018 for the business we acquired in the first nine months of 2019. (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 September 30, 2019 Rodoban $ 18.3 1.8 Other acquisitions (a) 5.1 (0.2 ) Total $ 23.4 1.6 Nine months ended September 30, 2019 Rodoban $ 54.2 2.9 Other acquisitions (a) 6.2 (0.1 ) Total $ 60.4 2.8 (a) Includes the actual results of BI, COMEF and TVS. (In millions) Revenue Net income (loss) attributable to Brink's Pro forma results of Brink's for the three months ended September 30, 2019 Brink's as reported $ 928.4 5.4 Other acquisitions (a) 5.0 0.7 Total $ 933.4 6.1 2018 Brink's as reported $ 852.4 17.4 Rodoban (a) 17.5 (1.1 ) Dunbar (a) 46.3 1.1 Other acquisitions (a) 10.6 0.3 Total $ 926.8 17.7 Pro forma results of Brink's for the nine months ended September 30, 2019 Brink's as reported $ 2,747.4 31.6 Rodoban (a) 0.6 — Other acquisitions (a) 26.8 1.7 Total $ 2,774.8 33.3 2018 Brink's as reported $ 2,581.2 (68.2 ) Rodoban (a) 56.5 (3.0 ) Dunbar (a) 244.0 5.4 Other acquisitions (a) 33.2 1.2 Total $ 2,914.9 (64.6 ) (a) Represents amounts prior to acquisition by Brink's. Acquisition costs We have incurred $5.6 million in transaction costs related to business acquisitions in the first nine months of 2019 ( $5.9 million in the first nine months of 2018). These costs are classified in the condensed consolidated statements of operations as selling, general and administrative expenses. |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) Other comprehensive income (loss), including the amounts reclassified from accumulated other comprehensive loss into earnings, was as follows: 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) Three months ended September 30, 2019 Amounts attributable to Brink's: Benefit plan adjustments $ (2.2 ) 0.8 10.3 (2.5 ) 6.4 Foreign currency translation adjustments (35.2 ) — — — (35.2 ) Gains (losses) on cash flow hedges 3.5 (1.5 ) (7.4 ) 2.5 (2.9 ) (33.9 ) (0.7 ) 2.9 — (31.7 ) Amounts attributable to noncontrolling interests: Foreign currency translation adjustments 0.3 — — — 0.3 0.3 — — — 0.3 Total Benefit plan adjustments (a) (2.2 ) 0.8 10.3 (2.5 ) 6.4 Foreign currency translation adjustments (34.9 ) — — — (34.9 ) Gains (losses) on cash flow hedges (b) 3.5 (1.5 ) (7.4 ) 2.5 (2.9 ) $ (33.6 ) (0.7 ) 2.9 — (31.4 ) Three months ended September 30, 2018 Amounts attributable to Brink's: Benefit plan adjustments $ (1.1 ) 0.2 13.8 (3.3 ) 9.6 Foreign currency translation adjustments (0.6 ) — — — (0.6 ) Gains (losses) on cash flow hedges 0.1 — (0.1 ) — — (1.6 ) 0.2 13.7 (3.3 ) 9.0 Amounts attributable to noncontrolling interests: Foreign currency translation adjustments (0.6 ) — 0.6 — — (0.6 ) — 0.6 — — Total Benefit plan adjustments (a) (1.1 ) 0.2 13.8 (3.3 ) 9.6 Foreign currency translation adjustments (1.2 ) — 0.6 — (0.6 ) Gains (losses) on cash flow hedges (b) 0.1 — (0.1 ) — — $ (2.2 ) 0.2 14.3 (3.3 ) 9.0 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) Nine months ended September 30, 2019 Amounts attributable to Brink's: Benefit plan adjustments $ (5.8 ) 1.4 31.8 (7.6 ) 19.8 Foreign currency translation adjustments (25.9 ) — — — (25.9 ) Gains (losses) on cash flow hedges (16.0 ) 3.5 (6.4 ) 2.2 (16.7 ) (47.7 ) 4.9 25.4 (5.4 ) (22.8 ) Amounts attributable to noncontrolling interests: Foreign currency translation adjustments 0.7 — — — 0.7 0.7 — — — 0.7 Total Benefit plan adjustments (a) (5.8 ) 1.4 31.8 (7.6 ) 19.8 Foreign currency translation adjustments (25.2 ) — — — (25.2 ) Gains (losses) on cash flow hedges (b) (16.0 ) 3.5 (6.4 ) 2.2 (16.7 ) $ (47.0 ) 4.9 25.4 (5.4 ) (22.1 ) Nine months ended September 30, 2018 Amounts attributable to Brink's: Benefit plan adjustments $ (0.8 ) 0.7 51.5 (10.1 ) 41.3 Foreign currency translation adjustments (138.7 ) — 107.2 (0.5 ) (32.0 ) Gains (losses) on cash flow hedges 0.7 (0.2 ) (0.1 ) — 0.4 (138.8 ) 0.5 158.6 (10.6 ) 9.7 Amounts attributable to noncontrolling interests: Foreign currency translation adjustments (0.5 ) — 0.6 — 0.1 (0.5 ) — 0.6 — 0.1 Total Benefit plan adjustments (a) (0.8 ) 0.7 51.5 (10.1 ) 41.3 Foreign currency translation adjustments (139.2 ) — 107.8 (0.5 ) (31.9 ) Gains (losses) on cash flow hedges (b) 0.7 (0.2 ) (0.1 ) — 0.4 $ (139.3 ) 0.5 159.2 (10.6 ) 9.8 (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 September 30, Nine Months Ended September 30, (In millions) 2019 2018 2019 2018 Total net periodic retirement benefit cost included in: Cost of revenues $ 1.9 1.9 $ 5.7 6.4 Selling, general and administrative expenses 0.6 0.7 1.8 1.9 Interest and other nonoperating income (expense) 7.9 8.9 25.4 30.6 (b) Pretax gains and losses on cash flow hedges are classified in the condensed consolidated statements of operations as: • other operating income (expense) ( $8.9 million gain in the three months ended September 30, 2019 and no gains or losses in the three months ended September 30, 2018 ; as well as $10.3 million gain in the nine months ended September 30, 2019 and no gains or losses in the nine months ended September 30, 2018 ) • interest expense ( $1.4 million of expense in the three months ended September 30, 2019 ; as well as $3.9 million of expense in the nine months ended September 30, 2019 ). The changes in accumulated other comprehensive loss attributable to Brink’s are as follows: (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 (4.4 ) (25.9 ) (12.5 ) (42.8 ) Amounts reclassified from accumulated other comprehensive loss to net income 24.2 — (4.2 ) 20.0 Other comprehensive income (loss) attributable to Brink's 19.8 (25.9 ) (16.7 ) (22.8 ) Cumulative effect of change in accounting principle (a) (28.8 ) — — (28.8 ) Balance as of September 30, 2019 $ (581.1 ) (407.9 ) (15.9 ) (1,004.9 ) (a) We adopted ASU 2018-02 (see Note 1) effective January 1, 2019 and recognized a cumulative-effect adjustment to retained earnings. |
Fair value of financial instrum
Fair value of financial instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments Investments in Mutual Funds We have investments in mutual funds that are carried at fair value in the financial statements. For these investments, fair value was based on quoted market prices, which we have categorized as a Level 1 valuation. Fixed-Rate Debt The fair value and carrying value of our fixed-rate debt are as follows: (In millions) September 30, 2019 December 31, 2018 Senior unsecured notes Carrying value $ 600.0 600.0 Fair value 613.0 519.9 The fair value estimate of our senior unsecured notes was based on the present value of future cash flows, discounted at rates for similar instruments at the measurement date, which we have categorized as a Level 3 valuation. Forward and Swap Contracts We have outstanding foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies. At September 30, 2019 , the notional value of our short term outstanding foreign currency forward and swap contracts was $119 million , with average maturities of approximately two months . These short term foreign currency forward and swap contracts primarily offset exposures in the euro and the Brazilian real and are not designated as hedges for accounting purposes and, accordingly, changes in their fair value are recorded immediately in earnings. At September 30, 2019 , the fair value of our short term foreign currency contracts was a net asset of approximately $1.4 million , of which $1.5 million was included in prepaid expenses and $0.1 million was included in accrued liabilities on the condensed balance sheet. We recognized gains of $8.3 million on our short term foreign currency contracts in the first nine months of 2019 and gains of $5.2 million in the first nine months of 2018. In the first quarter of 2019, we entered into a long term cross currency swap contract to hedge exposure in Brazilian real, which is designated as a cash flow hedge for accounting purposes. At September 30, 2019 , the notional value of this long term contract was $133 million with a weighted-average maturity of 2.4 years . We recognized net gains of $6.3 million on this contract, of which gains of $10.3 million were included in other operating income (expense) to offset transaction losses of $10.3 million and expenses of $4.0 million were included in interest expense in the first nine months of 2019. At September 30, 2019 , the fair value of the long term cross currency swap contract was a $7.0 million net asset, of which a $8.9 million asset is included in other assets and a $1.9 million liability is included in accrued liabilities on the condensed consolidated balance sheet. In the first quarter of 2016, we entered into two interest rate swaps that hedge cash flow risk associated with changes in variable interest rates and that are designated as cash flow hedges for accounting purposes. At September 30, 2019 , the notional value of these contracts was $40 million with a remaining weighted-average maturity of 0.8 years . At September 30, 2019 , the fair value of these interest rates swaps was an asset of $0.2 million and was included in prepaid expenses on the condensed consolidated balance sheet. The effect of these swaps are included in interest expense and were not significant in the first nine months of 2019. In the first quarter of 2019, we entered into ten interest rate swaps that hedge cash flow risk associated with changes in variable interest rates and that are designated as cash flow hedges for accounting purposes. At September 30, 2019 , the notional value of these contracts was $400 million with a remaining weighted-average maturity of 2.2 years . At September 30, 2019 , the fair value of these interest rate swaps was a net liability of $19.3 million , of which $3.5 million was included in accrued liabilities and $15.8 million was included in other liabilities on the condensed consolidated balance sheet. The effect of these swaps are included in interest expense and were not significant in the first nine months of 2019. The fair values of these forward and swap contracts are based on the present value of net future cash payments and receipts, which we have categorized as a Level 2 valuation. Contingent Consideration The estimated fair value of our liabilities for contingent consideration represents the fair value of the potential amounts payable for our acquisition of Maco Transportadora. The remaining contingent amount is expected to be paid in a scheduled second installment in the fourth quarter of 2019, with the final amount paid based partially on the retention of customer revenue versus a target revenue amount. The remaining contingent consideration arrangement requires us to pay potential undiscounted amounts between $0 to $15.1 million based on retaining the revenue levels of existing customers at the acquisition dates. If there is a shortfall in revenues, a multiple of 2.5 is applied to the revenue shortfall and the contingent consideration to be paid to the former owners is reduced. We used a probability-weighted approach to estimate the fair value of these contingent consideration payments. The fair value of the contingent consideration is the full $15.1 million potentially payable as of September 30, 2019 as we believe it is unlikely that the contingent consideration payments will be reduced for a revenue shortfall. At September 30, 2019 , this $15.1 million was included in accrued liabilities on the condensed consolidated balance sheet. The fair value of this liability was estimated using a discounted cash flow technique with significant inputs that are not observable in the market and thus represents a Level 3 valuation. The significant inputs in the Level 3 valuation not supported by market activity included our probability assessments of expected future cash flows related to our acquisition of this entity during the period from acquisition to the estimated settlement date of the remaining payment. The contingent consideration payments may differ from the amounts that are ultimately paid, with any changes in the liabilities recorded in interest and other nonoperating expense in our condensed consolidated statements of operations until the liabilities are settled. Other Financial Instruments Other financial instruments include cash and cash equivalents, accounts receivable, floating rate debt, accounts payable and accrued liabilities. The financial statement carrying amounts of these items approximate the fair value. There were no transfers in or out of any of the levels of the valuation hierarchy in the first nine months of 2019 . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt September 30, December 31, (In millions) 2019 2018 Debt: Short-term borrowings Restricted cash borrowings (a) $ 10.0 10.5 Other 5.4 18.4 Total short-term borrowings $ 15.4 28.9 Long-term debt Bank credit facilities: Term loan A (b) $ 776.9 466.9 Senior unsecured notes (c) 592.7 592.0 Revolving Credit Facility 217.9 340.0 Other 7.3 5.7 Financing leases 139.7 120.5 Total long-term debt $ 1,734.5 1,525.1 Total debt $ 1,749.9 1,554.0 Included in: Current liabilities $ 89.1 82.4 Noncurrent liabilities 1,660.8 1,471.6 Total debt $ 1,749.9 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 13 for more details. (b) Amounts outstanding are net of unamortized debt costs of $3.1 million as of September 30, 2019 and $1.8 million as of December 31, 2018 . (c) Amounts outstanding are net of unamortized debt costs of $7.3 million as of September 30, 2019 and $8.0 million as of December 31, 2018 . Long-Term Debt Senior Secured Credit Facility In February 2019 , we amended our senior secured credit facility (the “Senior Secured Credit Facility”) with Wells Fargo Bank, National Association, as former administrative agent and Bank of America, N.A. as successor administrative agent. After the amendment, the Senior Secured Credit Facility consisted of a $1 billion revolving credit facility (the "Revolving Credit Facility") and an $800 million term loan facility (the "Term Loan Facility"). Prior to the amendment, the Term Loan Facility had an outstanding balance of approximately $469 million . The proceeds from the amendment were used to repay outstanding principal under the Revolving Credit Facility as well as certain fees related to the closing of the transaction. Loans under the Revolving Credit Facility mature five years after the amendment date ( February 8, 2024 ). Principal payments are due quarterly for the amended Term Loan Facility equal to 1.25% of the initial loan amount with a final lump sum payment due on February 8, 2024 . Interest rates for the Senior Secured Credit Facility are based on LIBOR plus a margin or an alternate base rate plus a margin. The Revolving Credit Facility allows us to borrow money or issue letters of credit (or otherwise satisfy credit needs) on a revolving basis over the term of the facility. As of September 30, 2019 , $782 million was available under the Revolving Credit Facility. The obligations under the Senior Secured Credit Facility are secured by a first-priority lien on all or substantially all of the assets of the Company and certain of its domestic subsidiaries, including a first-priority lien on equity interests of certain of the Company’s direct and indirect subsidiaries. The Company and certain of its domestic subsidiaries also guarantee the obligations under the Senior Secured Credit Facility. The margin on both LIBOR and alternate base rate borrowings under the Senior Secured Credit Facility is based on the Company’s consolidated net leverage ratio. The margin on LIBOR borrowings, which can range from 1.25% to 2.00% , was 1.75% at September 30, 2019 . The margin on alternate base rate borrowings, which can range from 0.25% to 1.00% , was 0.75% as of September 30, 2019 . We also pay an annual commitment fee on the unused portion of the Revolving Credit Facility based on the Company’s consolidated net leverage ratio. The commitment fee, which can range from 0.15% to 0.30% , was 0.25% as of September 30, 2019 . Senior Unsecured Notes In October 2017 , we issued at par ten -year senior unsecured notes (the "Senior Notes") in the aggregate principal amount of $600 million . The Senior Notes will mature on October 15, 2027 and bear an annual interest rate of 4.625% . The Senior Notes are general unsecured obligations guaranteed by certain of the Company’s existing and future U.S. subsidiaries, which are also guarantors under the Senior Secured Credit Facility. The Senior Notes have not been and will not be registered under the Securities Act of 1933 (the “Securities Act”) or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The notes were offered in the United States only to persons reasonably believed to be qualified institutional buyers in reliance on the exception from registration set forth in Rule 144A under the Securities Act and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. Letter of Credit Facilities and Bank Guarantee Facilities We have three committed letter of credit facilities totaling $80 million , of which approximately $28 million was available at September 30, 2019 . At September 30, 2019 , we had undrawn letters of credit and guarantees of $52 million issued under these facilities. A $10 million facility expires in April 2022 , a $54 million facility expires in December 2019 and a $16 million facility expires in January 2024 . We have two uncommitted letter of credit facilities totaling $55 million , of which approximately $33 million was available at September 30, 2019 . At September 30, 2019 , we had undrawn letters of credit and guarantees of $22 million issued under these facilities. A $40 million facility expires in January 2020 and a $15 million facility has no expiration date. The Senior Secured Credit Facility is also available for issuance of letters of credit and bank guarantees. The Senior Secured Credit Facility, Senior Unsecured Notes, the Letter of Credit Facilities and Bank Guarantee Facilities contain various financial and other covenants. The financial covenants, among other things, limit our ability to provide liens, restrict fundamental changes, limit transactions with affiliates and unrestricted subsidiaries, restrict changes to our fiscal year and to organizational documents, limit asset dispositions, limit the use of proceeds from asset sales, limit sale and leaseback transactions, limit investments, limit the ability to incur debt, restrict certain payments to shareholders, limit negative pledges, limit the ability to change the nature of our business, provide for a maximum consolidated net leverage ratio and provide for minimum coverage of interest costs. If we were not to comply with the terms of our various financing agreements, the repayment terms could be accelerated and the commitments could be withdrawn. An acceleration of the repayment terms under one agreement could trigger the acceleration of the repayment terms under the other financing agreements. We were in compliance with all financial covenants at September 30, 2019 . |
Leases Leases
Leases Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease facilities, vehicles, CompuSafe ® units, computers and other equipment under long-term operating and financing leases with varying terms. Most of the operating leases contain renewal and/or purchase options at our sole discretion. The renewal periods differ by asset class and by country and are included in our determination of lease term if we determine we are reasonably certain to exercise the option. We have taken the component election for all material asset categories, except CompuSafe units. This election allows us to account for lease components (e.g., fixed payments or variable payments that depend on a rate that can be determined at commencement, including rent for the right to use the asset) together with nonlease components (e.g., other fixed payments that deliver a good or service including common-area maintenance costs) in the calculation of the right-of-use asset and corresponding liability. Variable costs, such as inflation adjusted payments for facilities, or nonlease components that vary periodically (included as part of the component election), are expensed as incurred. Our leases do not contain any material residual value guarantees or material restrictive covenants. The components of lease assets and liabilities were as follows: (In millions) Balance sheet classification September 30, 2019 Assets: Operating lease assets Right-of-use assets, net $ 269.3 Finance lease assets Property and equipment, net 151.3 Total leased assets $ 420.6 Liabilities: Current: Operating Accrued liabilities $ 64.3 Financing Current maturities of long-term debt 29.3 Noncurrent: Operating Lease liabilities 217.9 Financing Long-term debt 110.4 Total lease liabilities $ 421.9 The components of lease expense were as follows: (In millions) 2019 Nine Months Ended September 30, Operating lease cost (a) $ 71.2 Short-term lease cost 18.6 Financial lease cost: Amortization of right-of-use assets 20.6 Interest on lease liabilities 5.5 Total lease cost $ 115.9 (a) Includes variable lease costs, which are immaterial. Net rent expense and amortization expense and interest on financing leases included in continuing operations was $109.7 million for the nine months ended September 30, 2018. Other information related to leases was as follows: (In millions, except for lease term and discount rate) 2019 Nine Months Ended September 30, Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 70.8 Operating cash flows from finance leases 5.5 Financing cash flows from finance leases 21.1 Right-of-use assets obtained in exchange for lease obligations: Operating leases 42.9 Finance leases 46.2 Weighted Average Remaining Lease Term Operating leases 7.4 years Finance leases 5.2 years Weighted Average Discount Rate Operating leases 7.0 % Finance leases 5.2 % As of December 31, 2018, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows: (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 As of December 31, 2018, minimum repayments of long-term debt under financing leases were as follows: (In millions) 2019 $ 25.1 2020 23.5 2021 21.7 2022 19.7 2023 16.2 Later years 14.3 Total $ 120.5 |
Share-based compensation plans
Share-based compensation plans | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation plans | Share-based compensation plans We have share-based compensation plans to attract and retain employees and nonemployee directors and to more closely align their interests with those of our shareholders. We have outstanding share-based awards granted to employees under the 2013 Equity Incentive Plan ("2013 Plan") and the 2017 Equity Incentive Plan (the "2017 Plan). These plans permit grants of restricted stock, restricted stock units, performance stock, performance units, stock appreciation rights, stock options, as well as other share-based awards to eligible employees. The 2013 Plan and the 2017 Plan also permit cash awards to eligible employees. The 2017 Plan became effective May 2017. No further grants of awards will be made under the the 2013 Plan, although awards under this prior plan remain outstanding. We also have outstanding deferred stock units granted to directors under the 2017 Plan. Share-based awards were previously granted to directors and remain outstanding under the Non-Employee Director's Equity Plan and the Directors’ Stock Accumulation Plan, which has expired. Outstanding awards at September 30, 2019 include performance share units, restricted stock units, deferred stock units, performance-based stock options, time-based stock options and certain awards that will be settled in cash. Compensation Expense Compensation expense is measured using the fair-value-based method. For employee and director awards considered equity grants, compensation expense is recognized from the award or grant date to the earlier of the retirement-eligible date or the vesting date. For awards considered liability awards, compensation cost is based on the change in the fair value of the instrument for each reporting period and the percentage of the requisite service that has been rendered. Compensation cost associated with liability awards was not significant in the three and nine months ended September 30, 2019 or the prior year periods. Compensation expenses are classified as selling, general and administrative expenses in the condensed consolidated statements of operations. Compensation expenses for the share-based awards were as follows: Compensation Expense Compensation Expense Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Performance Share Units $ 7.0 3.1 $ 21.6 9.7 Market Share Units — — — 0.1 Restricted Stock Units 1.4 1.6 5.3 4.9 Deferred Stock Units and fees paid in stock 0.3 0.4 0.9 0.9 Stock Options 1.1 1.2 8.1 3.2 Share-based payment expense 9.8 6.3 35.9 18.8 Income tax benefit (2.3 ) (1.5 ) (8.3 ) (4.4 ) Share-based payment expense, net of tax $ 7.5 4.8 $ 27.6 14.4 Performance-Based Stock Options In 2018, 2017 and 2016, we granted performance-based stock options that have a service condition as well as a market condition. In addition, some of the awards granted in 2016 contain a non-financial performance condition. We measure the fair value of these performance-based options at the grant date using a Monte Carlo simulation model. The following table summarizes performance-based stock option activity during the first nine months of 2019 : 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 September 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 September 30, 2019 reflects the inclusion of the modified fair value per share for the modified awards. Time-Based Stock Options We granted time-based stock options that contain only a service condition. We measure the fair value of these time-based options at the grant date using a Black-Scholes-Merton option pricing model. The following table summarizes time-based stock option activity during the first nine months of 2019 : 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 September 30, 2019 127.0 $ 21.56 Restricted Stock Units (“RSUs”) We granted RSUs that contain only a service condition. We measure the fair value of RSUs based on the price of Brink’s stock at the grant date, adjusted for a discount for dividends not received or accrued during the vesting period. The following table summarizes RSU activity during the first nine months of 2019 : Shares (in thousands) Weighted-Average Grant-Date Fair Value Nonvested balance as of December 31, 2018 235.8 $ 52.63 Granted 92.2 78.08 Forfeited (9.9 ) 71.65 Vested (133.8 ) 42.92 Nonvested balance as of September 30, 2019 (a) 184.3 $ 71.74 (a) Certain RSUs were modified in the second quarter of 2019. The weighted-average grant date fair value per share at September 30, 2019 reflects the inclusion of the modified fair value per share for the modified awards. Performance Share Units ("PSUs”) We granted Internal Metric PSUs ("IM PSUs") and Total Shareholder Return PSUs ("TSR PSUs"). IM PSUs contain a performance condition as well as a service condition. We measure the fair value of these PSUs based on the price of Brink’s stock at the grant date, adjusted for a discount for dividends not received or accrued during the vesting period. For the IM PSUs granted in 2019, the performance period is from January 1, 2019 to December 31, 2021. TSR PSUs contain a market condition as well as a service condition. We measure the fair value of PSUs containing a market condition at the grant date using a Monte Carlo simulation model. For the TSR PSUs granted in 2019, the performance period is from January 1, 2019 to December 31, 2021. The following table summarizes all PSU activity during the first nine months of 2019 : 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 (19.2 ) 72.64 Vested (a)(b)(c) (316.1 ) 32.35 Nonvested balance as of September 30, 2019 (c) 564.9 $ 70.01 (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 225.9 compared to target shares of 187.0 . Additionally, in accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the performance period ended June 30, 2017 were 129.1 compared to target shares of 129.1 . (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. A portion of these modified PSUs were distributed in the third quarter of 2019. The weighted-average grant date fair value per share at September 30, 2019 reflects the inclusion of the modified fair value per share for the remaining modified awards. Deferred Stock Units ("DSUs") We granted DSUs to our nonemployee directors in 2019 and in prior years. We measure the fair value of DSUs at the grant date, based on the price of Brink's stock, and, if applicable, adjusted for a discount for dividends not received or accrued during the vesting period. DSUs granted after 2014 will be paid out in shares of Brink's stock on the first anniversary of the grant date, provided that the director has not elected to defer the distribution of shares until a later date. DSUs granted prior to 2015, in general, will be paid out in shares of stock following separation from service. The following table summarizes all DSU activity during the first nine months of 2019 : Shares (in thousands) Weighted-Average Grant-Date Fair Value Nonvested balance as of December 31, 2018 12.5 $ 74.43 Granted 12.1 79.69 Vested (12.5 ) 74.43 Nonvested balance as of September 30, 2019 12.1 $ 79.69 |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Common Stock At September 30, 2019 , we had 100 million shares of common stock authorized and 50.0 million shares issued and outstanding. Dividends We paid regular quarterly dividends on our common stock during the last two years. On October 14, 2019 , the Board declared a regular quarterly dividend of 15 cents per share payable on December 2, 2019 . The payment of future dividends is at the discretion of the Board of Directors and is dependent on our future earnings, financial condition, shareholder equity levels, cash flow, business requirements and other factors. Preferred Stock At September 30, 2019 , we had the authority to issue up to 2.0 million shares of preferred stock with a par value of $10 per share. Share Repurchase Program In May 2017, our board of directors authorized a $200 million share repurchase program, which will expire on December 31, 2019. We are not obligated to repurchase any specific dollar amount or number of shares, and, at September 30, 2019 , approximately $106 million remains available under this program. The timing and volume of share repurchases may be executed at the discretion of management on an opportunistic basis, or pursuant to trading plans or other arrangements. Share repurchases under this program may be made in the open market, in privately negotiated transactions, or otherwise. In December 2018, we entered into an accelerated share repurchase arrangement ("ASR") with a financial institution. In exchange for a $50 million up-front payment at the beginning of the purchase period, the financial institution delivered to us 700,000 shares of our common stock for an average repurchase price of $71.43 per share. The shares received were retired in the period they were delivered to us, and the up-front payment was accounted for as a reduction to shareholders' equity in the condensed consolidated balance sheet. For purposes of calculating earnings per share, we reported the ASR as a repurchase of our common stock in December 2018 and as a forward contract indexed to our common stock. The ASR met all of the applicable criteria for equity classification, and, as a result, was not accounted for as a derivative instrument. The ASR purchase period subsequently ended in February 2019 and we received and retired an additional 37,387 shares under the ASR, resulting in an overall average repurchase price of $67.81 per share. Additionally, during the year ended December 31, 2018, we used $43.5 million to repurchase 610,177 shares at an average price of $71.22 per share. These shares were retired upon repurchase. No additional shares were repurchased in the nine months ended September 30, 2019 . Shares Used to Calculate Earnings per Share Three Months Nine Months (In millions) 2019 2018 2019 2018 Weighted-average shares: Basic (a) 50.3 51.1 50.2 51.0 Effect of dilutive stock awards and options 0.8 0.9 0.8 — Diluted 51.1 52.0 51.0 51.0 Antidilutive stock awards and options excluded from denominator 0.1 — 0.1 1.6 (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 nine months ended September 30, 2019 , and 0.3 million in the three months and 0.3 million in the nine months ended September 30, 2018 . |
Supplemental cash flow informat
Supplemental cash flow information | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information Nine Months (In millions) 2019 2018 Cash paid for: Interest $ 56.0 38.5 Income taxes, net 33.4 72.8 Non-cash Investing and Financing Activities We acquired $46.2 million in armored vehicles and other equipment under financing lease arrangements in the first nine months of 2019 compared to $42.0 million in armored vehicles and other equipment acquired under financing lease arrangements in the first nine months of 2018 . Restricted Cash (Cash Supply Chain Services) In France, we offer services to certain of our customers where we manage some or all of their cash supply chains. Providing this service requires our French subsidiary to take temporary title to the cash received from the management of our customers' cash supply chains until the cash is returned to the customers. As part of this service offering, we have entered into lending arrangements with some of our customers. Cash borrowed under these lending arrangements is used in the process of managing these customers' cash supply chains. The cash for which we have temporary title and the cash borrowed under these customer lending arrangements is restricted and cannot be used for any other purpose other than to service our customers who participate in this service offering. At September 30, 2019 , we held $89.2 million of restricted cash ( $10.0 million represented short-term borrowings, $38.5 million represented restricted cash held for customers, and $40.7 million represented accrued liabilities). At December 31, 2018 , we held $136.1 million of restricted cash ( $10.5 million represented short-term borrowings, $90.3 million represented restricted cash held for customers and $35.3 million represented accrued liabilities). The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows. September 30, December 31, (In millions) 2019 2018 Cash and cash equivalents $ 337.0 343.4 Restricted cash 89.2 136.1 Total, cash, cash equivalents, and restricted cash in the condensed consolidated statements of cash flows $ 426.2 479.5 |
Contingent matters
Contingent matters | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent matters | Contingent matters During the fourth quarter of 2018, we became aware of an investigation initiated by the Chilean Fiscalía Nacional Económica (the Chilean antitrust agency) related to potential anti-competitive practices among competitors in the cash logistics industry in Chile. Because no legal proceedings have been initiated against Brink’s Chile, we cannot estimate the probability of loss or any range of possible loss at this time. It is possible, however, that Brink’s Chile could become the subject of legal or administrative claims or proceedings that could result in a loss in a future period. In addition, we are involved in various other lawsuits and claims in the ordinary course of business. We are not able to estimate the loss or range of losses for some of these matters. We have recorded accruals for losses that are considered probable and reasonably estimable. Except as otherwise noted, we do not believe that it is reasonably possible the ultimate disposition of any of the lawsuits currently pending against the Company could have a material adverse effect on our liquidity, financial position or results of operations. |
Reorganization and Restructurin
Reorganization and Restructuring | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Reorganization and Restructuring | Reorganization and Restructuring 2016 Reorganization and Restructuring In the fourth quarter of 2016, management implemented restructuring actions across our global business operations and our corporate functions. As a result of these actions, we recognized $18.1 million in 2016 costs and an additional $17.3 million in 2017 costs under this restructuring for severance, asset-related adjustments, a benefit program termination and lease terminations. We recognized additional charges of $11.3 million in the first nine months of 2018 under this restructuring for severance costs and asset-related adjustments. The actions under this program were substantially completed in 2018. Other Restructurings Management periodically implements restructuring actions in targeted sections of our business. As a result of these actions, we recognized charges of $4.2 million in the first nine months of 2018 and $20.5 million in the first nine months of 2019 , primarily severance costs and charges related to the modification of share-based compensation awards. For the current restructuring actions, we expect to incur additional costs between $1 million and $3 million |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events 2019 Annuity Contract Buy-out On October 8, 2019 , we purchased a single premium group annuity contract from an insurance company to provide for the payment of pension benefits to 2,634 primary U.S. pension plan participants. We purchased the contract with $53 million of plan assets. The insurance company will take over the payments of these benefits starting January 1, 2020, at which date the beneficiaries will cease to be participants in the primary U.S. pension plan and the plan will have no further obligation to these participants. This transaction settles $54 million of our primary U.S. pension plan obligation. As a result, we expect to recognize a settlement charge of approximately $20 million in the fourth quarter of 2019. The actual amount of the charge will depend upon various actuarial assumptions, including discount rate, at the remeasurement date. After the settlement, there are expected to be approximately 11,400 |
Basis of presentation (Policies
Basis of presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements. Actual results could differ materially from these estimates. The most significant estimates are related to goodwill and other long-lived assets, pension and other retirement benefit obligations, legal contingencies, allowance for doubtful accounts and deferred tax assets. |
Consolidation | Consolidation The condensed consolidated financial statements include our controlled subsidiaries. Control is determined based on ownership rights or, when applicable, based on whether we are considered to be the primary beneficiary of a variable interest entity. See "Venezuela" section below for further information. For controlled subsidiaries that are not wholly-owned, the noncontrolling interests are included in net income and in total equity. Investments in businesses that we do not control, but for which we have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method and our proportionate share of income or loss is recorded in other operating income (expense). Investments in businesses for which we do not have the ability to exercise significant influence over operating and financial policies are accounted for at fair value, if readily determinable, with changes in fair value recognized in net income. For equity investments that do not have a readily determinable fair value, we measure these investments at cost minus impairment, if any, plus or minus changes from observable price changes. All intercompany accounts and transactions have been eliminated in consolidation. |
Foreign Currency Translation | Foreign Currency Translation Our condensed consolidated financial statements are reported in U.S. dollars. Our foreign subsidiaries maintain their records primarily in the currency of the country in which they operate. The method of translating local currency financial information into U.S. dollars depends on whether the economy in which our foreign subsidiary operates has been designated as highly inflationary or not. Economies with a three -year cumulative inflation rate of more than 100% are considered highly inflationary. Assets and liabilities of foreign subsidiaries in non-highly inflationary economies are translated into U.S. dollars using rates of exchange at the balance sheet date. Translation adjustments are recorded in other comprehensive income (loss). Revenues and expenses are translated at rates of exchange in effect during the year. Transaction gains and losses are recorded in net income. Foreign subsidiaries that operate in highly inflationary countries use the U.S. dollar as their functional currency. Local currency monetary assets and liabilities are remeasured into U.S. dollars using rates of exchange as of each balance sheet date, with remeasurement adjustments and other transaction gains and losses recognized in earnings. Other than nonmonetary equity securities, nonmonetary assets and liabilities do not fluctuate with changes in local currency exchange rates to the dollar. For nonmonetary equity securities traded in highly inflationary economies, the fair market value of the equity securities are remeasured at the current exchange rates to determine gain or loss to be recorded in net income. Revenues and expenses are translated at rates of exchange in effect during the year. Argentina We operate in Argentina through wholly owned subsidiaries and a smaller controlled subsidiary (together "Brink's Argentina"). Revenues from Brink's Argentina represented approximately 6% of our consolidated revenues for the first nine months of 2019 and 8% of our consolidated revenues for the first nine months of 2018. The operating environment in Argentina continues to present business challenges, including ongoing devaluation of the Argentine peso and significant inflation. In the first nine months of 2019 and 2018, the Argentine peso declined approximately 35% (from 37.6 to 57.5 pesos to the U.S. dollar) and approximately 55% (from 18.6 to 41.3 pesos to the U.S. dollar), respectively. For the year ended December 31, 2018 , the Argentine peso declined approximately 50% (from 18.6 to 37.6 pesos to the U.S. dollar). Beginning July 1, 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, we consolidated Brink's Argentina using our accounting policy for subsidiaries operating in highly inflationary economies beginning with the third quarter of 2018. Argentine peso-denominated monetary assets and liabilities are remeasured at each balance sheet date using the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In the second half of 2018, we recognized a $6.2 million pretax remeasurement loss. In the first nine months of 2019, we recognized a $10.4 million pretax remeasurement loss. At September 30, 2019 , Argentina's economy remains highly inflationary for accounting purposes. At September 30, 2019 , we had net monetary assets denominated in Argentine pesos of $25.5 million (including cash of $16.6 million ). At September 30, 2019 , we had net nonmonetary assets of $151.0 million (including $99.8 million of goodwill). At September 30, 2019 , we had no equity securities denominated in Argentine pesos. During September 2019, the Argentine government announced currency controls on both companies and individuals. The Argentine central bank issued details as to how the exchange control procedures would operate in practice. Under these procedures, central bank approval is required for many transactions, including dividend repatriation abroad. These currency control regulations will apply initially until December 31, 2019, although there can be no certainty that these regulations will not continue into 2020. Although the Argentine government has implemented currency controls impacting repatriation of funds, Brink’s management continues to provide guidance and strategic oversight, including budgeting and forecasting for Brink’s Argentina. We continue to control our Argentina business for purposes of consolidation of our financial statements and continue to monitor the situation in Argentina. Venezuela Deconsolidation . Our Venezuelan operations offer transportation and route-based logistics management services for cash and valuables throughout Venezuela. Currency exchange regulations, combined with other government regulations, such as price controls and strict labor laws, significantly limit our ability to make and execute operational decisions at our Venezuelan subsidiaries. With the May 2018 re-election of the President in Venezuela for an additional six-year term, we expect these conditions to continue for the foreseeable future. As a result of the conditions described above, we concluded that, effective June 30, 2018, we did not meet the accounting criteria for control over our Venezuelan operations and, as a result, we began reporting the results of our investment in our Venezuelan subsidiaries using the cost method of accounting. This change resulted in a pretax charge of $127 million in the second quarter of 2018. For reporting periods beginning after June 30, 2018, we have not included the operating results of our Venezuela operations. We may incur losses resulting from our Venezuelan business to the extent that we provide U.S. dollars or make future investments in our Venezuelan subsidiaries, including any additional investments made directly in our Venezuelan subsidiaries or additional costs incurred by us to address compliance with recent sanctions and other regulatory requirements imposed by the U.S. government that restrict our ability to conduct business in Venezuela. Prior to the imposition of the U.S. government sanctions, we provided immaterial amounts of financial support to our Venezuela operations in 2019 and 2018. We continue to monitor the situation in Venezuela, including the imposition of sanctions by the U.S. government targeting Venezuela. |
New Accounting Standards | New Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue From Contracts with Customers. Under this standard, an entity recognizes an amount of revenue to which it expects to be entitled when the transfer of goods or services to customers occurs. The standard requires expanded disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted this standard effective January 1, 2018 using the modified retrospective method and recognized a cumulative-effect adjustment increasing retained earnings by $1.5 million . The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, in January 2016. This new guidance changes the accounting related to the classification and measurement of certain equity investments. Equity investments with readily determinable fair values must be measured at fair value. All changes in fair value will be recognized in net income as opposed to other comprehensive income. We adopted ASU 2016-01 effective January 1, 2018 and recognized a cumulative-effect adjustment increasing retained earnings by $1.1 million . In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , which changes the timing of when certain intercompany transactions are recognized within the provision for income taxes. We adopted ASU 2016-16 effective January 1, 2018 using the modified retrospective method and we recognized a cumulative-effect adjustment increasing retained earnings by $0.7 million . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires the recognition of right-of-use assets and lease liabilities by lessees for certain leases classified as operating leases and also requires expanded disclosures regarding leasing activities. The accounting for financing leases (previously "capital leases") remains substantially unchanged. We have adopted the standard effective January 1, 2019 and have elected to adopt the new standard at the adoption date through a cumulative-effect adjustment to the opening balance of retained earnings. Under this approach, we will continue to report comparative periods under ASC 840. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical lease classification. We also made an accounting policy election to exclude leases with an initial term of 12 months or less from the condensed consolidated balance sheet. We will recognize those lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. As part of this adoption, we have implemented internal controls and key system functionality to enable the preparation of financial information. The adoption of the standard resulted in recording right-of-use assets of $310.1 million and lease liabilities of $320.3 million as of January 1, 2019. The right-of-use assets are lower than the lease liabilities as existing deferred rent and lease incentive liabilities were recorded against the right-of-use assets at adoption in accordance with the standard. The standard did not affect our condensed consolidated statements of operations or our condensed consolidated statements of cash flows. The standard had no impact on our debt-covenant compliance under our current agreements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment , which eliminates the requirement that an entity perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. We early adopted this ASU effective January 1, 2019. The early adoption did not have any impact on our condensed consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities , which amends and simplifies the application of hedge accounting guidance to better portray the economic results of risk management activities in the financial statements. The guidance expands the ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, and eases certain hedge effectiveness assessment requirements. We adopted the standard effective January 1, 2019 with no significant impact on our condensed consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“Tax Reform Act”). We adopted ASU 2018-02 effective January 1, 2019 and elected to recognize a cumulative-effect adjustment increasing retained earnings by $28.8 million related to the change in the U.S. federal corporate tax rate. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , which changes the fair value measurement disclosure requirements. The guidance is effective January 1, 2020 with early adoption permitted. We are currently evaluating the potential impact of the standard on financial reporting. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the use of the current expected credit loss model. This model is based on expected, rather than incurred, losses to determine the allowance for doubtful accounts and certain net investments in leases. The guidance is effective January 1, 2020 and we are currently evaluating the potential impact of the standard on financial reporting. |
Revenue from contracts with c_2
Revenue from contracts with customers Revenue from contracts with customers (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | The amount of revenue recognized in the nine months ended September 30, 2019 that was included in the January 1, 2019 contract liability balance was $2.5 million . This revenue consists of services provided to customers who had prepaid for those services prior to the current year. The majority of the increase in the contract liability balance resulted from the acquisition of Balance Innovations, LLC in the second quarter of 2019 (see Note 6). We also recognized revenue of $0.4 million in the nine months ended September 30, 2019 from performance obligations satisfied in the prior year. This amount is a result of changes in the transaction price of our contracts with customers. Contract Costs Sales commissions directly related to obtaining new contracts with customers qualify for capitalization. These capitalized costs are amortized to expense ratably over the term of the contracts. At September 30, 2019 , the net capitalized costs to obtain contracts was $1.7 million , which is included in other assets on the condensed consolidated balance sheet. Amortization expense was not significant and there were no impairment losses recognized related to these contract costs in the first nine months of 2019 . Practical Expedients For the majority of our contracts with customers, we invoice a fixed amount for each unit of service we have provided. These contracts provide us with the right to invoice for an amount or rate that corresponds to the value we have delivered to our customers. The volume of services that will be provided to customers over the term is not known at inception of these contracts. Therefore, while the rate per unit of service is known, the transaction price itself is variable. For this reason, we recognize revenue from these contracts equal to the amount for which we have the contractual right to invoice the customers. Because we are not required to estimate variable consideration related to the transaction price in order to recognize revenue, we are also not required to estimate the variable consideration to provide certain disclosures. As a result, we have elected to use the optional exemption related to the disclosure of transaction prices, amounts allocated to remaining performance obligations and the future periods in which revenue will be recognized, sometimes referred to as backlog. We have also elected to use the practical expedient for financing components related to our contract liabilities. We do not recognize interest expense on contracts for which the period between our receipt of customer payments and our service to the customer is one year or less. The majority of our revenues from contracts with customers are earned by providing services and these performance obligations are satisfied over time. Smaller amounts of revenues are earned from selling goods, such as safes, to customers where the performance obligations are satisfied at a point in time. Certain of our high-value services involve the leasing of assets, such as safes, to our customers along with the regular servicing of those safe devices. Revenues related to the leasing of these assets are recognized in accordance with applicable lease guidance (ASC 842 beginning in 2019 and ASC 840 prior to 2019), but are included in the above table as the amounts are a small percentage of overall revenues. Contract Balances Contract Asset Although payment terms and conditions can vary, for the majority of our customer contracts, we invoice for all of the services provided to the customer within a monthly period. For certain customer contracts, the timing of our performance may precede our right to invoice the customer for the total transaction price. For example, Brink's affiliates in certain countries, primarily in South America, negotiate annual price adjustments with certain customers and, once the price increases are finalized, the pricing changes are made retroactive to services provided in earlier periods. These retroactive pricing adjustments are estimated and recognized as revenue with a corresponding contract asset in the same period in which the related services are performed. As the estimate of the ultimate transaction price changes, we recognize a cumulative catch-up adjustment for the change in estimate. Contract Liability For other customer contracts, we may obtain the right to payment or receive customer payments prior to performing the related services under the contract. When the right to customer payments or receipt of payments precedes our performance, we recognize a contract liability. For performance obligations related to the services described above, we generally satisfy our obligations as each action to provide the service to the customer occurs. Because the customers simultaneously receive and consume the benefits from our services, these performance obligations are deemed to be satisfied over time. We use an output method, units of service provided, to recognize revenue because that is the best method to represent the transfer of our services to the customer at the agreed upon rate for each action. Although not as significant as our service offerings, we also sell goods to customers from time to time, such as safe devices. In those transactions, we satisfy our performance obligation at a point in time. We recognize revenue when the goods are delivered to the customer as that is the point in time that best represents when control has transferred to the customer. Our contracts with customers describe the services we can provide along with the fees for each action to provide the service. We typically send invoices to customers for all of the services we have provided within a monthly period and payments are generally due within 30 to 60 days of the invoice date. Although our customer contracts specify the fees for each action to provide service, the majority of the services stated in our contracts do not have a defined quantity over the contract term. Accordingly, the transaction price is considered variable as there is an unknown volume of services that will be rendered over the course of the contract. We recognize revenue for these services in the period in which they are provided to the customer based on the contractual rate at which we have the right to invoice the customer for each action. Some of our contracts with customers contain clauses that define the level of service that the customer will receive. The service level agreements (“SLA”) within those contracts contain specific calculations to determine whether the appropriate level of service has been met within a specific period, which is typically a month. We estimate SLA penalties and recognize the amounts as a reduction to revenue. Taxes collected from customers and remitted to governmental authorities are not included in revenues in the condensed consolidated statements of operations. |
Revenue from contracts with c_3
Revenue from contracts with customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue Disaggregated by Reportable Segment and Type of Service (In millions) Core Services High-Value Services Other Security Services Total Three months ended September 30, 2019 Reportable Segments: North America $ 275.7 171.0 — 446.7 South America 125.6 101.1 2.3 229.0 Rest of World 87.6 126.8 34.5 248.9 Total reportable segments 488.9 398.9 36.8 924.6 Not Allocated to Segments: Acquisitions and dispositions — (0.2 ) — (0.2 ) Internal loss (a) — 4.0 — 4.0 Total $ 488.9 402.7 36.8 928.4 Three months ended September 30, 2018 Reportable Segments: North America $ 236.9 146.5 — 383.4 South America 104.3 107.9 3.3 215.5 Rest of World 88.9 128.6 36.0 253.5 Total reportable segments 430.1 383.0 39.3 852.4 Not Allocated to Segments: Venezuela — — — — Total $ 430.1 383.0 39.3 852.4 Nine months ended September 30, 2019 Reportable Segments: North America $ 832.7 491.0 — 1,323.7 South America 363.6 313.2 7.7 684.5 Rest of World 263.7 370.5 101.5 735.7 Total reportable segments 1,460.0 1,174.7 109.2 2,743.9 Not Allocated to Segments: Acquisitions and dispositions — (0.5 ) — (0.5 ) Internal loss (a) — 4.0 — 4.0 Total $ 1,460.0 1,178.2 109.2 2,747.4 Nine months ended September 30, 2018 Reportable Segments: North America $ 616.7 410.8 — 1,027.5 South America 343.6 350.6 9.4 703.6 Rest of World 270.8 387.9 140.0 798.7 Total reportable segments 1,231.1 1,149.3 149.4 2,529.8 Not Allocated to Segments: Venezuela 18.4 33.0 — 51.4 Total $ 1,249.5 1,182.3 149.4 2,581.2 |
Contract with Customer, Asset and Liability | The opening and closing balances of receivables, contract assets and contract liabilities related to contracts with customers are as follows: (In millions) Receivables Contract Asset Contract Liability Opening (January 1, 2019) $ 599.5 1.8 2.5 Closing (September 30, 2019) 653.1 2.3 8.9 Increase (decrease) $ 53.6 0.5 6.4 |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue and Operating Profit from Segments to Consolidated | The following table summarizes our revenues and segment profit for each of our reportable segments and reconciles these amounts to consolidated revenues and operating profit: Revenues Operating Profit Three Months Ended September 30, Three Months Ended September 30, (In millions) 2019 2018 2019 2018 Reportable Segments: North America $ 446.7 383.4 $ 38.7 33.6 South America 229.0 215.5 59.4 46.3 Rest of World 248.9 253.5 32.2 30.8 Total reportable segments 924.6 852.4 130.3 110.7 Reconciling Items: Corporate expenses: General, administrative and other expenses — — (26.2 ) (20.6 ) Foreign currency transaction gains (losses) — — (0.4 ) 0.4 Reconciliation of segment policies to GAAP — — (1.3 ) 4.8 Other items not allocated to segments: Reorganization and Restructuring — — (6.4 ) (7.3 ) Acquisitions and dispositions (0.2 ) — (24.0 ) (10.7 ) Argentina highly inflationary impact — — (7.9 ) (8.3 ) Internal loss (a) 4.0 — (11.3 ) — Reporting compliance (b) — — (0.3 ) (2.0 ) Total $ 928.4 852.4 $ 52.5 67.0 (a) See details regarding the impact of the Internal loss at Note 1. (b) Costs (primarily third party expenses) related to accounting standard implementation and material weakness mitigation. Additional information provided at page 45 . Revenues Operating Profit Nine Months Ended September 30, Nine Months Ended September 30, (In millions) 2019 2018 2019 2018 Reportable Segments: North America $ 1,323.7 1,027.5 $ 129.1 80.3 South America 684.5 703.6 147.4 148.0 Rest of World 735.7 798.7 82.2 82.6 Total reportable segments 2,743.9 2,529.8 358.7 310.9 Reconciling Items: Corporate expenses: General, administrative and other expenses — — (85.8 ) (72.6 ) Foreign currency transaction gains (losses) — — 0.2 (1.8 ) Reconciliation of segment policies to GAAP — — 2.9 6.5 Other items not allocated to segments: Venezuela operations — 51.4 — 2.3 Reorganization and Restructuring — — (20.5 ) (15.5 ) Acquisitions and dispositions (0.5 ) — (63.8 ) (24.6 ) Argentina highly inflationary impact — — (12.3 ) (8.3 ) Internal loss (a) 4.0 — (13.9 ) — Reporting compliance (b) — — (2.0 ) (3.4 ) Total $ 2,747.4 2,581.2 $ 163.5 193.5 (a) See details regarding the impact of the Internal loss at Note 1. (b) Costs (primarily third party expenses) related to accounting standard implementation and material weakness mitigation. Additional information provided at page 45 . |
Retirement benefits (Tables)
Retirement benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic pension cost for our pension plans were as follows: U.S. Plans Non-U.S. Plans Total (In millions) 2019 2018 2019 2018 2019 2018 Three months ended September 30, Service cost $ — — 2.5 2.6 2.5 2.6 Interest cost on projected benefit obligation 8.5 8.0 2.6 2.5 11.1 10.5 Return on assets – expected (12.6 ) (13.4 ) (2.5 ) (2.7 ) (15.1 ) (16.1 ) Amortization of losses 4.9 6.8 1.1 1.0 6.0 7.8 Amortization of prior service credit — — (0.1 ) — (0.1 ) — Settlement loss — — 0.6 0.4 0.6 0.4 Net periodic pension cost $ 0.8 1.4 4.2 3.8 5.0 5.2 Nine months ended September 30, Service cost $ — — 7.4 8.2 7.4 8.2 Interest cost on projected benefit obligation 25.6 24.0 7.8 9.8 33.4 33.8 Return on assets – expected (38.0 ) (40.2 ) (7.7 ) (8.4 ) (45.7 ) (48.6 ) Amortization of losses 14.7 20.8 3.1 3.3 17.8 24.1 Amortization of prior service cost — — — 0.2 — 0.2 Settlement loss — — 1.5 1.4 1.5 1.4 Net periodic pension cost $ 2.3 4.6 12.1 14.5 14.4 19.1 |
Schedule of Costs of Retirement Plans | The components of net periodic postretirement cost related to retirement benefits other than pensions were as follows: UMWA Plans Black Lung and Other Plans Total (In millions) 2019 2018 2019 2018 2019 2018 Three months ended September 30, Interest cost on accumulated postretirement benefit obligations $ 4.1 4.2 0.9 0.7 5.0 4.9 Return on assets – expected (3.4 ) (4.1 ) — — (3.4 ) (4.1 ) Amortization of losses 3.9 4.9 1.2 1.6 5.1 6.5 Amortization of prior service (credit) cost (1.2 ) (1.2 ) (0.1 ) 0.2 (1.3 ) (1.0 ) Net periodic postretirement cost $ 3.4 3.8 2.0 2.5 5.4 6.3 Nine months ended September 30, Service cost $ — — 0.1 0.1 0.1 0.1 Interest cost on accumulated postretirement benefit obligations 13.2 12.9 2.7 2.3 15.9 15.2 Return on assets – expected (10.0 ) (12.5 ) — — (10.0 ) (12.5 ) Amortization of losses 12.8 15.4 3.5 4.3 16.3 19.7 Amortization of prior service (credit) cost (3.5 ) (3.5 ) (0.3 ) 0.8 (3.8 ) (2.7 ) Net periodic postretirement cost $ 12.5 12.3 6.0 7.5 18.5 19.8 |
Income taxes (Tables)
Income taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Continuing operations Provision for income taxes (in millions) $ 14.7 23.0 $ 37.1 53.0 Effective tax rate 67.4 % 54.9 % 51.0 % (514.6 %) |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | (In millions) Estimated Fair Value at Acquisition Date Fair value of purchase consideration Cash paid through September 30, 2019 $ 135.7 Indemnification asset (1.9 ) Fair value of purchase consideration $ 133.8 Fair value of net assets acquired (a) Cash $ 1.4 Accounts receivable 9.2 Other current assets 0.5 Property and equipment, net 2.7 Intangible assets (b) 47.9 Goodwill (c) 84.3 Other noncurrent assets 5.3 Current liabilities (9.6 ) Noncurrent liabilities (7.9 ) Fair value of net assets acquired $ 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 Fair value of purchase consideration Cash paid through September 30, 2019 $ 53.4 Fair value of future payments to sellers 7.8 Contingent consideration 1.6 Indemnification asset (6.5 ) Fair value of purchase consideration $ 56.3 Fair value of net assets acquired (a) Cash $ 5.1 Accounts receivable 4.5 Property and equipment, net 7.3 Intangible assets (a) 21.6 Goodwill (b) 36.5 Other current and noncurrent assets 2.4 Current liabilities (14.8 ) Noncurrent liabilities (6.3 ) Fair value of net assets acquired $ 56.3 (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.), COMEF (Brazil) and TVS (Global Markets - South America). We expect goodwill related to BI to be deductible for tax purposes. We do not expect goodwill related to COMEF or TVS to be deductible for tax purposes. (In millions) Estimated Fair Value at Acquisition Date Fair value of purchase consideration Cash paid through September 30, 2019 $ 546.8 Receivable from seller (6.3 ) Fair value of purchase consideration $ 540.5 Fair value of net assets acquired Cash $ 25.8 Accounts receivable 31.9 Other current assets 11.7 Property and equipment, net 56.6 Intangible assets (a) 162.0 Goodwill (b) 304.1 Other noncurrent assets 21.1 Current liabilities (29.5 ) Noncurrent liabilities (43.2 ) Fair value of net assets acquired $ 540.5 (a) 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). (b) 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. |
Business Acquisition, Pro Forma Information | The pro forma consolidated results of Brink’s presented below reflect a hypothetical ownership as of January 1, 2017 for the businesses we acquired during 2018 and a hypothetical ownership as of January 1, 2018 for the business we acquired in the first nine months of 2019. (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 September 30, 2019 Rodoban $ 18.3 1.8 Other acquisitions (a) 5.1 (0.2 ) Total $ 23.4 1.6 Nine months ended September 30, 2019 Rodoban $ 54.2 2.9 Other acquisitions (a) 6.2 (0.1 ) Total $ 60.4 2.8 (a) Includes the actual results of BI, COMEF and TVS. (In millions) Revenue Net income (loss) attributable to Brink's Pro forma results of Brink's for the three months ended September 30, 2019 Brink's as reported $ 928.4 5.4 Other acquisitions (a) 5.0 0.7 Total $ 933.4 6.1 2018 Brink's as reported $ 852.4 17.4 Rodoban (a) 17.5 (1.1 ) Dunbar (a) 46.3 1.1 Other acquisitions (a) 10.6 0.3 Total $ 926.8 17.7 Pro forma results of Brink's for the nine months ended September 30, 2019 Brink's as reported $ 2,747.4 31.6 Rodoban (a) 0.6 — Other acquisitions (a) 26.8 1.7 Total $ 2,774.8 33.3 2018 Brink's as reported $ 2,581.2 (68.2 ) Rodoban (a) 56.5 (3.0 ) Dunbar (a) 244.0 5.4 Other acquisitions (a) 33.2 1.2 Total $ 2,914.9 (64.6 ) (a) Represents amounts prior to acquisition by Brink's. |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | Other comprehensive income (loss), including the amounts reclassified from accumulated other comprehensive loss into earnings, was as follows: 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) Three months ended September 30, 2019 Amounts attributable to Brink's: Benefit plan adjustments $ (2.2 ) 0.8 10.3 (2.5 ) 6.4 Foreign currency translation adjustments (35.2 ) — — — (35.2 ) Gains (losses) on cash flow hedges 3.5 (1.5 ) (7.4 ) 2.5 (2.9 ) (33.9 ) (0.7 ) 2.9 — (31.7 ) Amounts attributable to noncontrolling interests: Foreign currency translation adjustments 0.3 — — — 0.3 0.3 — — — 0.3 Total Benefit plan adjustments (a) (2.2 ) 0.8 10.3 (2.5 ) 6.4 Foreign currency translation adjustments (34.9 ) — — — (34.9 ) Gains (losses) on cash flow hedges (b) 3.5 (1.5 ) (7.4 ) 2.5 (2.9 ) $ (33.6 ) (0.7 ) 2.9 — (31.4 ) Three months ended September 30, 2018 Amounts attributable to Brink's: Benefit plan adjustments $ (1.1 ) 0.2 13.8 (3.3 ) 9.6 Foreign currency translation adjustments (0.6 ) — — — (0.6 ) Gains (losses) on cash flow hedges 0.1 — (0.1 ) — — (1.6 ) 0.2 13.7 (3.3 ) 9.0 Amounts attributable to noncontrolling interests: Foreign currency translation adjustments (0.6 ) — 0.6 — — (0.6 ) — 0.6 — — Total Benefit plan adjustments (a) (1.1 ) 0.2 13.8 (3.3 ) 9.6 Foreign currency translation adjustments (1.2 ) — 0.6 — (0.6 ) Gains (losses) on cash flow hedges (b) 0.1 — (0.1 ) — — $ (2.2 ) 0.2 14.3 (3.3 ) 9.0 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) Nine months ended September 30, 2019 Amounts attributable to Brink's: Benefit plan adjustments $ (5.8 ) 1.4 31.8 (7.6 ) 19.8 Foreign currency translation adjustments (25.9 ) — — — (25.9 ) Gains (losses) on cash flow hedges (16.0 ) 3.5 (6.4 ) 2.2 (16.7 ) (47.7 ) 4.9 25.4 (5.4 ) (22.8 ) Amounts attributable to noncontrolling interests: Foreign currency translation adjustments 0.7 — — — 0.7 0.7 — — — 0.7 Total Benefit plan adjustments (a) (5.8 ) 1.4 31.8 (7.6 ) 19.8 Foreign currency translation adjustments (25.2 ) — — — (25.2 ) Gains (losses) on cash flow hedges (b) (16.0 ) 3.5 (6.4 ) 2.2 (16.7 ) $ (47.0 ) 4.9 25.4 (5.4 ) (22.1 ) Nine months ended September 30, 2018 Amounts attributable to Brink's: Benefit plan adjustments $ (0.8 ) 0.7 51.5 (10.1 ) 41.3 Foreign currency translation adjustments (138.7 ) — 107.2 (0.5 ) (32.0 ) Gains (losses) on cash flow hedges 0.7 (0.2 ) (0.1 ) — 0.4 (138.8 ) 0.5 158.6 (10.6 ) 9.7 Amounts attributable to noncontrolling interests: Foreign currency translation adjustments (0.5 ) — 0.6 — 0.1 (0.5 ) — 0.6 — 0.1 Total Benefit plan adjustments (a) (0.8 ) 0.7 51.5 (10.1 ) 41.3 Foreign currency translation adjustments (139.2 ) — 107.8 (0.5 ) (31.9 ) Gains (losses) on cash flow hedges (b) 0.7 (0.2 ) (0.1 ) — 0.4 $ (139.3 ) 0.5 159.2 (10.6 ) 9.8 (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 September 30, Nine Months Ended September 30, (In millions) 2019 2018 2019 2018 Total net periodic retirement benefit cost included in: Cost of revenues $ 1.9 1.9 $ 5.7 6.4 Selling, general and administrative expenses 0.6 0.7 1.8 1.9 Interest and other nonoperating income (expense) 7.9 8.9 25.4 30.6 (b) Pretax gains and losses on cash flow hedges are classified in the condensed consolidated statements of operations as: • other operating income (expense) ( $8.9 million gain in the three months ended September 30, 2019 and no gains or losses in the three months ended September 30, 2018 ; as well as $10.3 million gain in the nine months ended September 30, 2019 and no gains or losses in the nine months ended September 30, 2018 ) • interest expense ( $1.4 million of expense in the three months ended September 30, 2019 ; as well as $3.9 million of expense in the nine months ended September 30, 2019 ). |
Reclassification Out of Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive loss attributable to Brink’s are as follows: (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 (4.4 ) (25.9 ) (12.5 ) (42.8 ) Amounts reclassified from accumulated other comprehensive loss to net income 24.2 — (4.2 ) 20.0 Other comprehensive income (loss) attributable to Brink's 19.8 (25.9 ) (16.7 ) (22.8 ) Cumulative effect of change in accounting principle (a) (28.8 ) — — (28.8 ) Balance as of September 30, 2019 $ (581.1 ) (407.9 ) (15.9 ) (1,004.9 ) (a) We adopted ASU 2018-02 (see Note 1) effective January 1, 2019 and recognized a cumulative-effect adjustment to retained earnings. |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The fair value and carrying value of our fixed-rate debt are as follows: (In millions) September 30, 2019 December 31, 2018 Senior unsecured notes Carrying value $ 600.0 600.0 Fair value 613.0 519.9 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | September 30, December 31, (In millions) 2019 2018 Debt: Short-term borrowings Restricted cash borrowings (a) $ 10.0 10.5 Other 5.4 18.4 Total short-term borrowings $ 15.4 28.9 Long-term debt Bank credit facilities: Term loan A (b) $ 776.9 466.9 Senior unsecured notes (c) 592.7 592.0 Revolving Credit Facility 217.9 340.0 Other 7.3 5.7 Financing leases 139.7 120.5 Total long-term debt $ 1,734.5 1,525.1 Total debt $ 1,749.9 1,554.0 Included in: Current liabilities $ 89.1 82.4 Noncurrent liabilities 1,660.8 1,471.6 Total debt $ 1,749.9 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 13 for more details. (b) Amounts outstanding are net of unamortized debt costs of $3.1 million as of September 30, 2019 and $1.8 million as of December 31, 2018 . (c) Amounts outstanding are net of unamortized debt costs of $7.3 million as of September 30, 2019 and $8.0 million as of December 31, 2018 . |
Leases Leases (Tables)
Leases Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Supplemental balance sheet disclosure leases | The components of lease assets and liabilities were as follows: (In millions) Balance sheet classification September 30, 2019 Assets: Operating lease assets Right-of-use assets, net $ 269.3 Finance lease assets Property and equipment, net 151.3 Total leased assets $ 420.6 Liabilities: Current: Operating Accrued liabilities $ 64.3 Financing Current maturities of long-term debt 29.3 Noncurrent: Operating Lease liabilities 217.9 Financing Long-term debt 110.4 Total lease liabilities $ 421.9 |
Lease expenses | The components of lease expense were as follows: (In millions) 2019 Nine Months Ended September 30, Operating lease cost (a) $ 71.2 Short-term lease cost 18.6 Financial lease cost: Amortization of right-of-use assets 20.6 Interest on lease liabilities 5.5 Total lease cost $ 115.9 (a) Includes variable lease costs, which are immaterial. |
Other information leases | Other information related to leases was as follows: (In millions, except for lease term and discount rate) 2019 Nine Months Ended September 30, Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 70.8 Operating cash flows from finance leases 5.5 Financing cash flows from finance leases 21.1 Right-of-use assets obtained in exchange for lease obligations: Operating leases 42.9 Finance leases 46.2 Weighted Average Remaining Lease Term Operating leases 7.4 years Finance leases 5.2 years Weighted Average Discount Rate Operating leases 7.0 % Finance leases 5.2 % |
Operating lease future minimum lease payments | As of December 31, 2018, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows: (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 |
Financing lease minimum repayments | As of December 31, 2018, minimum repayments of long-term debt under financing leases were as follows: (In millions) 2019 $ 25.1 2020 23.5 2021 21.7 2022 19.7 2023 16.2 Later years 14.3 Total $ 120.5 |
Share-based compensation plans
Share-based compensation plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Compensation expenses for the share-based awards were as follows: Compensation Expense Compensation Expense Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2019 2018 2019 2018 Performance Share Units $ 7.0 3.1 $ 21.6 9.7 Market Share Units — — — 0.1 Restricted Stock Units 1.4 1.6 5.3 4.9 Deferred Stock Units and fees paid in stock 0.3 0.4 0.9 0.9 Stock Options 1.1 1.2 8.1 3.2 Share-based payment expense 9.8 6.3 35.9 18.8 Income tax benefit (2.3 ) (1.5 ) (8.3 ) (4.4 ) Share-based payment expense, net of tax $ 7.5 4.8 $ 27.6 14.4 |
Option activity | The following table summarizes performance-based stock option activity during the first nine months of 2019 : 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 September 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 September 30, 2019 reflects the inclusion of the modified fair value per share for the modified awards. The following table summarizes time-based stock option activity during the first nine months of 2019 : 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 September 30, 2019 127.0 $ 21.56 |
Nonvested share activity | The following table summarizes all DSU activity during the first nine months of 2019 : Shares (in thousands) Weighted-Average Grant-Date Fair Value Nonvested balance as of December 31, 2018 12.5 $ 74.43 Granted 12.1 79.69 Vested (12.5 ) 74.43 Nonvested balance as of September 30, 2019 12.1 $ 79.69 The following table summarizes all PSU activity during the first nine months of 2019 : 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 (19.2 ) 72.64 Vested (a)(b)(c) (316.1 ) 32.35 Nonvested balance as of September 30, 2019 (c) 564.9 $ 70.01 (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 225.9 compared to target shares of 187.0 . Additionally, in accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the performance period ended June 30, 2017 were 129.1 compared to target shares of 129.1 . (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. A portion of these modified PSUs were distributed in the third quarter of 2019. The weighted-average grant date fair value per share at September 30, 2019 reflects the inclusion of the modified fair value per share for the remaining modified awards. The following table summarizes RSU activity during the first nine months of 2019 : Shares (in thousands) Weighted-Average Grant-Date Fair Value Nonvested balance as of December 31, 2018 235.8 $ 52.63 Granted 92.2 78.08 Forfeited (9.9 ) 71.65 Vested (133.8 ) 42.92 Nonvested balance as of September 30, 2019 (a) 184.3 $ 71.74 (a) Certain RSUs were modified in the second quarter of 2019. The weighted-average grant date fair value per share at September 30, 2019 reflects the inclusion of the modified fair value per share for the modified awards. |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Weighted Average Number of Shares | Shares Used to Calculate Earnings per Share Three Months Nine Months (In millions) 2019 2018 2019 2018 Weighted-average shares: Basic (a) 50.3 51.1 50.2 51.0 Effect of dilutive stock awards and options 0.8 0.9 0.8 — Diluted 51.1 52.0 51.0 51.0 Antidilutive stock awards and options excluded from denominator 0.1 — 0.1 1.6 (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 nine months ended September 30, 2019 , and 0.3 million in the three months and 0.3 million in the nine months ended September 30, 2018 . |
Supplemental cash flow inform_2
Supplemental cash flow information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Nine Months (In millions) 2019 2018 Cash paid for: Interest $ 56.0 38.5 Income taxes, net 33.4 72.8 |
Reconciliation of cash, cash equivalents, and restricted cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows. September 30, December 31, (In millions) 2019 2018 Cash and cash equivalents $ 337.0 343.4 Restricted cash 89.2 136.1 Total, cash, cash equivalents, and restricted cash in the condensed consolidated statements of cash flows $ 426.2 479.5 |
Basis of presentation (Details)
Basis of presentation (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019USD ($)$ / $ | Sep. 30, 2018USD ($)$ / $ | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)$ / $ | Sep. 30, 2019USD ($)segment$ / $ | Sep. 30, 2018USD ($)$ / $ | Dec. 31, 2017USD ($)$ / $ | Mar. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Mar. 31, 2018USD ($) | [1] | Jan. 01, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Number of operating segments | segment | 3 | |||||||||||
Net monetary assets | $ 1,246.1 | $ 1,206.5 | $ 1,246.1 | |||||||||
Cash and cash equivalents | 337 | 343.4 | 337 | |||||||||
Goodwill | 776 | 678.6 | 776 | |||||||||
Loss on deconsolidation of Venezuela operations | 0 | $ 0 | 0 | $ (126.7) | ||||||||
Revenues | 928.4 | $ 852.4 | 2,747.4 | $ 2,581.2 | ||||||||
Cumulative effect of change in accounting principle | $ 0 | $ 2.2 | ||||||||||
Right-of-use assets, net | $ 269.3 | $ 0 | $ 269.3 | |||||||||
Argentine pesos | Argentina | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Percent of Consolidated Revenue | 6.00% | 8.00% | ||||||||||
Rate decrease percent | 35.00% | 55.00% | 50.00% | 35.00% | 55.00% | |||||||
Official exchange rate | $ / $ | 57.5 | 41.3 | 37.6 | 57.5 | 41.3 | 18.6 | ||||||
Net remeasurement loss | $ (6.2) | $ (10.4) | ||||||||||
Net monetary assets | $ 25.5 | 25.5 | ||||||||||
Cash and cash equivalents | 16.6 | 16.6 | ||||||||||
Nonmonetary assets | 151 | 151 | ||||||||||
Goodwill | 99.8 | 99.8 | ||||||||||
Equity Securities | 0 | 0 | ||||||||||
Venezuelan bolívar fuerte | Venezuela | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Loss on deconsolidation of Venezuela operations | $ 127 | |||||||||||
Retained Earnings | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative effect of change in accounting principle | $ 28.8 | $ 3.3 | ||||||||||
Accounting Standards Update 2014-09 | Retained Earnings | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative effect of change in accounting principle | $ 1.5 | |||||||||||
Accounting Standards Update 2016-01 | Retained Earnings | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative effect of change in accounting principle | 1.1 | |||||||||||
Accounting Standards Update 2016-16 | Retained Earnings | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative effect of change in accounting principle | $ 0.7 | |||||||||||
Accounting Standards Update 2016-02 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Right-of-use assets, net | $ 310.1 | |||||||||||
Lease liabilities | 320.3 | |||||||||||
Accounting Standards Update 2018-02 | Retained Earnings | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative effect of change in accounting principle | $ 28.8 | |||||||||||
Internal Loss AR Rebuild | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Third-party expense | $ 3.9 | |||||||||||
Revenues | 4 | |||||||||||
Bank fees | 0.3 | |||||||||||
Increase to bad debt expense | 13.7 | $ 12.6 | ||||||||||
Accounts receivable | $ 25.3 | |||||||||||
Immaterial error correction | $ 10 | |||||||||||
[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. |
Revenue from contracts with c_4
Revenue from contracts with customers - disaggregation of revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | $ 928.4 | $ 852.4 | $ 2,747.4 | $ 2,581.2 |
Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 488.9 | 430.1 | 1,460 | 1,249.5 |
High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 402.7 | 383 | 1,178.2 | 1,182.3 |
Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 36.8 | 39.3 | 109.2 | 149.4 |
Reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 924.6 | 852.4 | 2,743.9 | 2,529.8 |
Reportable segments | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 488.9 | 430.1 | 1,460 | 1,231.1 |
Reportable segments | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 398.9 | 383 | 1,174.7 | 1,149.3 |
Reportable segments | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 36.8 | 39.3 | 109.2 | 149.4 |
Reportable segments | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 446.7 | 383.4 | 1,323.7 | 1,027.5 |
Reportable segments | North America | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 275.7 | 236.9 | 832.7 | 616.7 |
Reportable segments | North America | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 171 | 146.5 | 491 | 410.8 |
Reportable segments | North America | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 0 | 0 | 0 | 0 |
Reportable segments | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 229 | 215.5 | 684.5 | 703.6 |
Reportable segments | South America | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 125.6 | 104.3 | 363.6 | 343.6 |
Reportable segments | South America | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 101.1 | 107.9 | 313.2 | 350.6 |
Reportable segments | South America | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 2.3 | 3.3 | 7.7 | 9.4 |
Reportable segments | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 248.9 | 253.5 | 735.7 | 798.7 |
Reportable segments | Rest of World | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 87.6 | 88.9 | 263.7 | 270.8 |
Reportable segments | Rest of World | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 126.8 | 128.6 | 370.5 | 387.9 |
Reportable segments | Rest of World | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 34.5 | 36 | 101.5 | 140 |
Other items not allocated to segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Acquisitions and dispositions, Revenues | (0.2) | 0 | (0.5) | 0 |
Other items not allocated to segments | Venezuela | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 0 | 0 | 51.4 | |
Other items not allocated to segments | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Acquisitions and dispositions, Revenues | 0 | 0 | ||
Other items not allocated to segments | Core services | Venezuela | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 0 | 18.4 | ||
Other items not allocated to segments | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Acquisitions and dispositions, Revenues | (0.2) | (0.5) | ||
Other items not allocated to segments | High-value services | Venezuela | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 0 | 33 | ||
Other items not allocated to segments | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Acquisitions and dispositions, Revenues | 0 | 0 | ||
Other items not allocated to segments | Other security services | Venezuela | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | $ 0 | $ 0 | ||
Internal Loss AR Rebuild | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 4 | |||
Internal Loss AR Rebuild | Other items not allocated to segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 4 | 4 | ||
Internal Loss AR Rebuild | Other items not allocated to segments | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | $ 4 | $ 4 |
Revenue from contracts with c_5
Revenue from contracts with customers Revenue from contracts with customers - contract balances (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Receivables | $ 653.1 | $ 599.5 |
Contract Asset | 2.3 | |
Contract Liability | 8.9 | |
Revenue - revenue from performance obligation in prior periods | 0.4 | |
Capitalized costs to obtain contracts | 1.7 | |
Pro Forma under Old Revenue Recognition Standard | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Receivables | 599.5 | |
Contract Asset | 1.8 | |
Contract Liability | $ 2.5 | |
Revenue recognized included in beginning balance | 2.5 | |
Accounting Standards Update 2014-09 | Impact of New Revenue Recognition Standard | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Receivable - increase (decrease) | 53.6 | |
Contract asset increase (decrease) | 0.5 | |
Contract liability - increase (decrease) | $ 6.4 |
Segment information (Details)
Segment information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 928.4 | $ 852.4 | $ 2,747.4 | $ 2,581.2 | |
Operating Profit | 52.5 | 67 | 163.5 | 193.5 | |
Foreign currency transaction gains (losses) | (10.4) | (5.9) | |||
Reportable segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 924.6 | 852.4 | 2,743.9 | 2,529.8 | |
Operating Profit | 130.3 | 110.7 | 358.7 | 310.9 | |
Corporate expenses | |||||
Segment Reporting Information [Line Items] | |||||
General, administrative and other expenses | (26.2) | (20.6) | (85.8) | (72.6) | |
Foreign currency transaction gains (losses) | (0.4) | 0.4 | 0.2 | (1.8) | |
Reconciliation of segment policies to GAAP | (1.3) | 4.8 | 2.9 | 6.5 | |
Other items not allocated to segments | |||||
Segment Reporting Information [Line Items] | |||||
Acquisitions and dispositions, Revenues | (0.2) | 0 | (0.5) | 0 | |
Reorganization and Restructuring | (6.4) | (7.3) | (20.5) | (15.5) | |
Acquisitions and dispositions, Operating profit | (24) | (10.7) | (63.8) | (24.6) | |
Reporting compliance | 0.3 | 2 | (2) | 3.4 | |
Other items not allocated to segments | Venezuela operations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 51.4 | ||
Operating Profit | 0 | 2.3 | |||
Other items not allocated to segments | Argentina | |||||
Segment Reporting Information [Line Items] | |||||
Argentina highly inflationary impact | (7.9) | (8.3) | (12.3) | (8.3) | |
North America | Reportable segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 446.7 | 383.4 | 1,323.7 | 1,027.5 | |
Operating Profit | 38.7 | 33.6 | 129.1 | 80.3 | |
South America | Reportable segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 229 | 215.5 | 684.5 | 703.6 | |
Operating Profit | 59.4 | 46.3 | 147.4 | 148 | |
Rest of World | Reportable segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 248.9 | 253.5 | 735.7 | 798.7 | |
Operating Profit | 32.2 | $ 30.8 | 82.2 | $ 82.6 | |
Internal Loss AR Rebuild | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 4 | ||||
Internal loss | (13.7) | $ (12.6) | |||
Internal Loss AR Rebuild | Other items not allocated to segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 4 | 4 | |||
Internal loss | $ (11.3) | $ (13.9) |
Retirement benefits - Retiremen
Retirement benefits - Retirement Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2.5 | $ 2.6 | $ 7.4 | $ 8.2 |
Interest cost on projected benefit obligation | 11.1 | 10.5 | 33.4 | 33.8 |
Return on assets – expected | (15.1) | (16.1) | (45.7) | (48.6) |
Amortization of losses | 6 | 7.8 | 17.8 | 24.1 |
Amortization of prior service cost | (0.1) | 0 | 0 | 0.2 |
Settlement loss | 0.6 | 0.4 | 1.5 | 1.4 |
Net periodic pension cost | 5 | 5.2 | 14.4 | 19.1 |
Retirement benefits other than pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.1 | 0.1 | ||
Interest cost on projected benefit obligation | 5 | 4.9 | 15.9 | 15.2 |
Return on assets – expected | (3.4) | (4.1) | (10) | (12.5) |
Amortization of losses | 5.1 | 6.5 | 16.3 | 19.7 |
Amortization of prior service cost | (1.3) | (1) | (3.8) | (2.7) |
Net periodic pension cost | 5.4 | 6.3 | 18.5 | 19.8 |
U.S. Plans | Pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost on projected benefit obligation | 8.5 | 8 | 25.6 | 24 |
Return on assets – expected | (12.6) | (13.4) | (38) | (40.2) |
Amortization of losses | 4.9 | 6.8 | 14.7 | 20.8 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 | 0 |
Net periodic pension cost | 0.8 | 1.4 | 2.3 | 4.6 |
Non-U.S. Plans | Pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2.5 | 2.6 | 7.4 | 8.2 |
Interest cost on projected benefit obligation | 2.6 | 2.5 | 7.8 | 9.8 |
Return on assets – expected | (2.5) | (2.7) | (7.7) | (8.4) |
Amortization of losses | 1.1 | 1 | 3.1 | 3.3 |
Amortization of prior service cost | (0.1) | 0 | 0 | 0.2 |
Settlement loss | 0.6 | 0.4 | 1.5 | 1.4 |
Net periodic pension cost | 4.2 | 3.8 | 12.1 | 14.5 |
UMWA Plans | Retirement benefits other than pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | ||
Interest cost on projected benefit obligation | 4.1 | 4.2 | 13.2 | 12.9 |
Return on assets – expected | (3.4) | (4.1) | (10) | (12.5) |
Amortization of losses | 3.9 | 4.9 | 12.8 | 15.4 |
Amortization of prior service cost | (1.2) | (1.2) | (3.5) | (3.5) |
Net periodic pension cost | 3.4 | 3.8 | 12.5 | 12.3 |
Black Lung and Other Plans | Retirement benefits other than pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.1 | 0.1 | ||
Interest cost on projected benefit obligation | 0.9 | 0.7 | 2.7 | 2.3 |
Return on assets – expected | 0 | 0 | 0 | 0 |
Amortization of losses | 1.2 | 1.6 | 3.5 | 4.3 |
Amortization of prior service cost | (0.1) | 0.2 | (0.3) | 0.8 |
Net periodic pension cost | $ 2 | $ 2.5 | $ 6 | $ 7.5 |
Income taxes - Schedule of Comp
Income taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||||
Provision for income taxes (in millions) | $ 14.7 | $ 23 | $ 37.1 | $ 53 | ||
Effective tax rate | 67.40% | 54.90% | 51.00% | (514.60%) | ||
Tax Cuts and Jobs Act of 2017 | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax Reform Act Tax Expense Charge | $ 2.3 | $ 92 | ||||
Foreign tax credit amount | 1.3 | $ 31.1 | ||||
State tax amount | $ 0.2 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Acquired Entities (Details) $ in Millions | Sep. 30, 2019USD ($)employee | Jun. 14, 2019 | Jun. 12, 2019 | Jan. 04, 2019USD ($)employeevehiclebranch | Aug. 13, 2018USD ($)employeevehiclebranch | Sep. 30, 2019USD ($)employee | Sep. 30, 2019USD ($)employeeacquisition | Dec. 31, 2018USD ($) |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Goodwill | $ 776 | $ 776 | $ 776 | $ 678.6 | ||||
Other Acquisitions | ||||||||
Business Acquisition [Line Items] | ||||||||
Entity number of employees | employee | 1,300 | 1,300 | 1,300 | |||||
Number of Businesses Acquired | acquisition | 3 | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Purchase consideration - cash paid | $ 53.4 | |||||||
Fair value of future payments to sellers | $ 7.8 | $ 7.8 | 7.8 | |||||
Contingent consideration | 1.6 | 1.6 | 1.6 | |||||
Indemnification asset | (6.5) | (6.5) | (6.5) | |||||
Fair value of purchase consideration | 56.3 | |||||||
Cash | 5.1 | 5.1 | 5.1 | |||||
Accounts receivable | 4.5 | 4.5 | 4.5 | |||||
Property and equipment, net | 7.3 | 7.3 | 7.3 | |||||
Intangible assets | 21.6 | 21.6 | 21.6 | |||||
Goodwill | 36.5 | 36.5 | 36.5 | |||||
Other noncurrent assets | 2.4 | 2.4 | 2.4 | |||||
Current liabilities | (14.8) | (14.8) | (14.8) | |||||
Noncurrent liabilities | (6.3) | (6.3) | (6.3) | |||||
Fair value of net assets acquired | $ 56.3 | $ 56.3 | $ 56.3 | |||||
BI | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition date | Jun. 12, 2019 | |||||||
Percentage of shares acquired | 100.00% | |||||||
COMEF | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition date | Jun. 14, 2019 | |||||||
Percentage of shares acquired | 100.00% | |||||||
TVS | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition date | Sep. 30, 2019 | |||||||
Percentage of shares acquired | 100.00% | 100.00% | 100.00% | |||||
Rodoban | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition date | Jan. 4, 2019 | |||||||
Percentage of shares acquired | 100.00% | |||||||
Annual revenues | $ 80 | |||||||
Entity number of employees | employee | 2,900 | |||||||
Entity Number of branches | branch | 13 | |||||||
Entity Number of armored vehicles | vehicle | 190 | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Purchase consideration - cash paid | $ 135.7 | |||||||
Indemnification asset | (1.9) | |||||||
Fair value of purchase consideration | 133.8 | |||||||
Cash | 1.4 | |||||||
Accounts receivable | 9.2 | |||||||
Other current assets | 0.5 | |||||||
Property and equipment, net | 2.7 | |||||||
Intangible assets | 47.9 | |||||||
Goodwill | 84.3 | |||||||
Other noncurrent assets | 5.3 | |||||||
Current liabilities | (9.6) | |||||||
Noncurrent liabilities | (7.9) | |||||||
Fair value of net assets acquired | 133.8 | |||||||
Dunbar | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition date | Aug. 13, 2018 | |||||||
Percentage of shares acquired | 100.00% | |||||||
Entity number of employees | employee | 5,400 | |||||||
Entity Number of branches | branch | 78 | |||||||
Entity Number of armored vehicles | vehicle | 1,600 | |||||||
Intangible assets decrease | 20 | |||||||
Goodwill increase | 21 | |||||||
Noncurrent assets increase | 11 | |||||||
Noncurrent liability increase | 16 | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Purchase consideration - cash paid | $ 546.8 | |||||||
Receivable from seller | $ (6.3) | $ 6 | ||||||
Fair value of purchase consideration | 540.5 | |||||||
Cash | 25.8 | |||||||
Accounts receivable | 31.9 | |||||||
Other current assets | 11.7 | |||||||
Property and equipment, net | 56.6 | |||||||
Intangible assets | 162 | |||||||
Goodwill | 304.1 | |||||||
Other noncurrent assets | 21.1 | |||||||
Current liabilities | (29.5) | |||||||
Noncurrent liabilities | (43.2) | |||||||
Fair value of net assets acquired | 540.5 | |||||||
Customer relationships | Rodoban | ||||||||
Business Acquisition [Line Items] | ||||||||
Remaining Amortization Period | 11 years | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Intangible assets | 46 | |||||||
Customer relationships | Dunbar | ||||||||
Business Acquisition [Line Items] | ||||||||
Remaining Amortization Period | 15 years | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Intangible assets | 148 | |||||||
Trade names | Rodoban | ||||||||
Business Acquisition [Line Items] | ||||||||
Remaining Amortization Period | 1 year | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Intangible assets | 1 | |||||||
Trade names | Dunbar | ||||||||
Business Acquisition [Line Items] | ||||||||
Remaining Amortization Period | 8 years | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Intangible assets | $ 14 | |||||||
Noncompete agreements | Rodoban | ||||||||
Business Acquisition [Line Items] | ||||||||
Remaining Amortization Period | 5 years | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Intangible assets | $ 1 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Pro Forma (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Actual revenue results included in consolidation | $ 23.4 | $ 60.4 | ||
Actual net income results included in consolidation | 1.6 | 2.8 | ||
Revenues | 928.4 | $ 852.4 | 2,747.4 | $ 2,581.2 |
Reported net income (loss) attributable to Brink's | 5.4 | 17.4 | 31.6 | (68.2) |
Pro forma revenue results | 933.4 | 926.8 | 2,774.8 | 2,914.9 |
Pro forma net income results | 6.1 | 17.7 | 33.3 | (64.6) |
Transaction costs | 5.6 | 5.9 | 5.6 | 5.9 |
Rodoban | ||||
Business Acquisition [Line Items] | ||||
Actual revenue results included in consolidation | 18.3 | 54.2 | ||
Actual net income results included in consolidation | 1.8 | 2.9 | ||
Pro forma revenue results | 17.5 | 0.6 | 56.5 | |
Pro forma net income results | (1.1) | 0 | (3) | |
Dunbar | ||||
Business Acquisition [Line Items] | ||||
Pro forma revenue results | 46.3 | 244 | ||
Pro forma net income results | 1.1 | 5.4 | ||
Other Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Actual revenue results included in consolidation | 5.1 | 6.2 | ||
Actual net income results included in consolidation | (0.2) | (0.1) | ||
Pro forma revenue results | 5 | 10.6 | 26.8 | 33.2 |
Pro forma net income results | $ 0.7 | $ 0.3 | $ 1.7 | $ 1.2 |
Accumulated other comprehensi_3
Accumulated other comprehensive income (loss) - Amounts in OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | $ (33.6) | $ (2.2) | $ (47) | $ (139.3) | ||||
Amounts Arising During the Current Period, Income Tax | (0.7) | 0.2 | 4.9 | 0.5 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 2.9 | 14.3 | 25.4 | 159.2 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | 0 | (3.3) | (5.4) | (10.6) | ||||
Other comprehensive income (loss) | (31.4) | $ 7.1 | $ 2.2 | 9 | $ (11.4) | $ 12.2 | (22.1) | 9.8 |
Cost of revenues | 714.4 | 652.6 | 2,125.6 | 2,013 | ||||
Selling, general and administrative expenses | 155 | 125.4 | 451.3 | 368.4 | ||||
Interest and other income (expense) | (7.8) | (8.1) | (22.1) | (29.3) | ||||
Other operating income (expense) | 6.5 | 7.4 | 7 | 6.3 | ||||
Interest expense | 22.9 | 17 | 68.6 | 47.8 | ||||
Benefit plan adjustments | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | (2.2) | (1.1) | (5.8) | (0.8) | ||||
Amounts Arising During the Current Period, Income Tax | 0.8 | 0.2 | 1.4 | 0.7 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 10.3 | 13.8 | 31.8 | 51.5 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | (2.5) | (3.3) | (7.6) | (10.1) | ||||
Other comprehensive income (loss) | 6.4 | 9.6 | 19.8 | 41.3 | ||||
Foreign currency translation adjustments | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | (35.2) | (0.6) | (25.9) | (138.7) | ||||
Amounts Arising During the Current Period, Income Tax | 0 | 0 | 0 | 0 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 0 | 0 | 0 | 107.2 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | 0 | 0 | 0 | (0.5) | ||||
Other comprehensive income (loss) | (35.2) | (0.6) | (25.9) | (32) | ||||
Gains (losses) on cash flow hedges | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | 3.5 | 0.1 | (16) | 0.7 | ||||
Amounts Arising During the Current Period, Income Tax | (1.5) | 0 | 3.5 | (0.2) | ||||
Amounts Reclassified to Net Income (Loss), Pretax | (7.4) | (0.1) | (6.4) | (0.1) | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | 2.5 | 0 | 2.2 | 0 | ||||
Other comprehensive income (loss) | (2.9) | 0 | (16.7) | 0.4 | ||||
Gains (losses) on cash flow hedges | Reclassification out of accumulated other comprehensive income | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Other operating income (expense) | (8.9) | 0 | (10.3) | 0 | ||||
Interest expense | 1.4 | 3.9 | ||||||
AOCI Attributable to Parent | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | (33.9) | (1.6) | (47.7) | (138.8) | ||||
Amounts Arising During the Current Period, Income Tax | (0.7) | 0.2 | 4.9 | 0.5 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 2.9 | 13.7 | 25.4 | 158.6 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | 0 | (3.3) | (5.4) | (10.6) | ||||
Other comprehensive income (loss) | (31.7) | $ 7 | $ 1.9 | 9 | $ (10.4) | $ 11.1 | (22.8) | 9.7 |
Foreign currency translation adjustments | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | 0.3 | (0.6) | 0.7 | (0.5) | ||||
Amounts Arising During the Current Period, Income Tax | 0 | 0 | 0 | 0 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 0 | 0.6 | 0 | 0.6 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | 0 | 0 | 0 | 0 | ||||
Other comprehensive income (loss) | 0.3 | 0 | 0.7 | 0.1 | ||||
AOCI Attributable to Noncontrolling Interest | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | 0.3 | (0.6) | 0.7 | (0.5) | ||||
Amounts Arising During the Current Period, Income Tax | 0 | 0 | 0 | 0 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 0 | 0.6 | 0 | 0.6 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | 0 | 0 | 0 | 0 | ||||
Other comprehensive income (loss) | 0.3 | 0 | 0.7 | 0.1 | ||||
Benefit plan adjustments(a) | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | (2.2) | (1.1) | (5.8) | (0.8) | ||||
Amounts Arising During the Current Period, Income Tax | 0.8 | 0.2 | 1.4 | 0.7 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 10.3 | 13.8 | 31.8 | 51.5 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | (2.5) | (3.3) | (7.6) | (10.1) | ||||
Other comprehensive income (loss) | 6.4 | 9.6 | 19.8 | 41.3 | ||||
Benefit plan adjustments(a) | Reclassification out of accumulated other comprehensive income | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Cost of revenues | 1.9 | 1.9 | 5.7 | 6.4 | ||||
Selling, general and administrative expenses | 0.6 | 0.7 | 1.8 | 1.9 | ||||
Interest and other income (expense) | 7.9 | 8.9 | 25.4 | 30.6 | ||||
Foreign currency translation adjustments | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | (34.9) | (1.2) | (25.2) | (139.2) | ||||
Amounts Arising During the Current Period, Income Tax | 0 | 0 | 0 | 0 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 0 | 0.6 | 0 | 107.8 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | 0 | 0 | 0 | (0.5) | ||||
Other comprehensive income (loss) | (34.9) | (0.6) | (25.2) | (31.9) | ||||
Gains (losses) on cash flow hedges(b) | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | 3.5 | 0.1 | (16) | 0.7 | ||||
Amounts Arising During the Current Period, Income Tax | (1.5) | 0 | 3.5 | (0.2) | ||||
Amounts Reclassified to Net Income (Loss), Pretax | (7.4) | (0.1) | (6.4) | (0.1) | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | 2.5 | 0 | 2.2 | 0 | ||||
Other comprehensive income (loss) | $ (2.9) | $ 0 | $ (16.7) | $ 0.4 |
Accumulated other comprehensi_4
Accumulated other comprehensive income (loss) - Reclasses Out Of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||
Beginning balance | $ 153.7 | $ 153.7 | |||||||
Other comprehensive income (loss) | $ (31.4) | $ 7.1 | 2.2 | $ 9 | $ (11.4) | $ 12.2 | (22.1) | $ 9.8 | |
Cumulative effect of change in accounting principle | 0 | 2.2 | [1] | ||||||
Ending balance | 169.2 | 169.2 | |||||||
Benefit Plan Adjustments | |||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||
Beginning balance | (572.1) | (572.1) | |||||||
Other comprehensive income (loss) before reclassifications | (4.4) | ||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | 24.2 | ||||||||
Other comprehensive income (loss) | 6.4 | 9.6 | 19.8 | 41.3 | |||||
Ending balance | (581.1) | (581.1) | |||||||
Foreign Currency Translation Adjustments | |||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||
Beginning balance | (382) | (382) | |||||||
Other comprehensive income (loss) before reclassifications | (25.9) | ||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | 0 | ||||||||
Other comprehensive income (loss) | (35.2) | (0.6) | (25.9) | (32) | |||||
Ending balance | (407.9) | (407.9) | |||||||
Gains (Losses) on Cash Flow Hedges | |||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||
Beginning balance | 0.8 | 0.8 | |||||||
Other comprehensive income (loss) before reclassifications | (12.5) | ||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | (4.2) | ||||||||
Other comprehensive income (loss) | (2.9) | 0 | (16.7) | 0.4 | |||||
Ending balance | (15.9) | (15.9) | |||||||
AOCI Attributable to Parent | |||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||
Beginning balance | (953.3) | (953.3) | |||||||
Other comprehensive income (loss) before reclassifications | (42.8) | ||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | 20 | ||||||||
Other comprehensive income (loss) | (31.7) | $ 7 | 1.9 | $ 9 | $ (10.4) | 11.1 | (22.8) | $ 9.7 | |
Cumulative effect of change in accounting principle | (28.8) | $ (1.1) | [1] | ||||||
Ending balance | $ (1,004.9) | $ (1,004.9) | |||||||
Accounting Standards Update 2018-02 | Benefit Plan Adjustments | |||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||
Cumulative effect of change in accounting principle | (28.8) | ||||||||
Accounting Standards Update 2018-02 | AOCI Attributable to Parent | |||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||
Cumulative effect of change in accounting principle | $ (28.8) | ||||||||
[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. |
Fair value of financial instr_3
Fair value of financial instruments Fair value of financial instruments (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2019derivative_instrument | Dec. 31, 2018USD ($) | Jul. 18, 2017USD ($) | Mar. 31, 2016derivative_instrument | |
Debt Instrument [Line Items] | ||||||||
Other operating income (expense) | $ 6,500,000 | $ 7,400,000 | $ 7,000,000 | $ 6,300,000 | ||||
Foreign currency transaction gains (losses) | (10,400,000) | (5,900,000) | ||||||
Interest expense | 22,900,000 | $ 17,000,000 | 68,600,000 | 47,800,000 | ||||
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional value | 119,000,000 | $ 119,000,000 | ||||||
Weighted average maturity | 2 months | |||||||
Gain (loss) on foreign currency contract | $ 8,300,000 | $ 5,200,000 | ||||||
Not Designated as Hedging Instrument | Foreign Exchange Contract | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of foreign currency contract, net | 1,400,000 | 1,400,000 | ||||||
Designated as Hedging Instrument | Currency Swap | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional value | 133,000,000 | $ 133,000,000 | ||||||
Weighted average maturity | 2 years 4 months 24 days | |||||||
Foreign currency derivative instrument gains (losses) | $ 6,300,000 | |||||||
Other operating income (expense) | (10,300,000) | |||||||
Foreign currency transaction gains (losses) | 10,300,000 | |||||||
Interest expense | 4,000,000 | |||||||
Designated as Hedging Instrument | Currency Swap | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of contract, asset position | 7,000,000 | 7,000,000 | ||||||
Designated as Hedging Instrument | Interest Rate Swap | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional value | 40,000,000 | $ 40,000,000 | ||||||
Weighted average maturity | 9 months 18 days | |||||||
Number of interest rate swaps | derivative_instrument | 2 | |||||||
Designated as Hedging Instrument | $400 million interest rate swap | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional value | 400,000,000 | $ 400,000,000 | ||||||
Weighted average maturity | 2 years 2 months 12 days | |||||||
Number of interest rate swaps | derivative_instrument | 10 | |||||||
Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of swap, net | 19,300,000 | $ 19,300,000 | ||||||
Other Assets | Designated as Hedging Instrument | Currency Swap | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of contract, asset position | 8,900,000 | 8,900,000 | ||||||
Accrued liabilities | Not Designated as Hedging Instrument | Foreign Exchange Contract | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of foreign currency contract, net | 100,000 | 100,000 | ||||||
Accrued liabilities | Designated as Hedging Instrument | Currency Swap | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of contract, liability position | 1,900,000 | 1,900,000 | ||||||
Accrued liabilities | Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of swap, liability position | 3,500,000 | 3,500,000 | ||||||
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument | Foreign Exchange Contract | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of foreign currency contract, net | 1,500,000 | 1,500,000 | ||||||
Prepaid Expenses and Other Current Assets | Designated as Hedging Instrument | Interest Rate Swap | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of swap, net | 200,000 | 200,000 | ||||||
Other Liabilities | Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of swap, liability position | 15,800,000 | 15,800,000 | ||||||
Six hundred million senior unsecured notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Carrying value | 600,000,000 | 600,000,000 | $ 600,000,000 | |||||
Six hundred million senior unsecured notes | Level 3 | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value | 613,000,000 | 613,000,000 | $ 519,900,000 | |||||
Maco Transportadora | Level 3 | ||||||||
Debt Instrument [Line Items] | ||||||||
Contingent consideration | 15,100,000 | 15,100,000 | ||||||
Maco Transportadora | Accrued liabilities | Level 3 | ||||||||
Debt Instrument [Line Items] | ||||||||
Contingent consideration | $ 15,100,000 | $ 15,100,000 | ||||||
Measurement Input, Revenue Multiple | Maco Transportadora | ||||||||
Debt Instrument [Line Items] | ||||||||
Revenue multiple | 2.5 | |||||||
Minimum | Maco Transportadora | ||||||||
Debt Instrument [Line Items] | ||||||||
Contingent consideration | $ 0 | |||||||
Maximum | Maco Transportadora | ||||||||
Debt Instrument [Line Items] | ||||||||
Contingent consideration | $ 15,100,000 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 15.4 | $ 28.9 |
Long-term Debt Types [Abstract] | ||
Total long-term debt | 1,734.5 | 1,525.1 |
Total Debt | 1,749.9 | 1,554 |
Long-term Debt by Current and Noncurrent [Abstract] | ||
Current liabilities | 89.1 | 82.4 |
Noncurrent liabilities | 1,660.8 | 1,471.6 |
Term Loan A | Senior Secured Credit Facility - Amended | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 776.9 | |
Other Disclosures [Abstract] | ||
Debt issue costs | 3.1 | |
Term Loan A | Senior Secured Credit Facility - Original | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 466.9 | |
Other Disclosures [Abstract] | ||
Debt issue costs | 1.8 | |
Senior unsecured notes | Six hundred million senior unsecured notes | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 592.7 | 592 |
Other Disclosures [Abstract] | ||
Debt issue costs | 7.3 | 8 |
Revolving Credit Facility | ||
Long-term Debt Types [Abstract] | ||
Debt | 217.9 | 340 |
Other Non-US Dollar-denominated Facilities | ||
Long-term Debt Types [Abstract] | ||
Debt | 7.3 | 5.7 |
Financing leases | ||
Long-term Debt Types [Abstract] | ||
Financing leases | 139.7 | 120.5 |
Restricted Cash Borrowings | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 10 | 10.5 |
Other | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 5.4 | $ 18.4 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions | Feb. 08, 2019USD ($) | Oct. 31, 2017USD ($) | Sep. 30, 2019USD ($)facility |
Senior Secured Credit Facility - Original | |||
Debt Instrument [Line Items] | |||
Debt, aggregate principal amount | $ 469 | ||
Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Commitment Fee | 0.25% | ||
Letter of Credit | Three Committed Letter of Credit Facilities | |||
Debt Instrument [Line Items] | |||
Available capacity amount | $ 28 | ||
Number of term loan facilities | facility | 3 | ||
Amount available | $ 80 | ||
Undrawn letters of credit | 52 | ||
Letter of Credit | Ten Million Committed Facility | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity | 10 | ||
Letter of Credit | Fifty Four Million Committed Letter Of Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity | 54 | ||
Letter of Credit | Sixteen Million Committed Letter Of Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity | 16 | ||
Letter of Credit | Two Unsecured Letter of Credit Facilities | |||
Debt Instrument [Line Items] | |||
Available capacity amount | $ 33 | ||
Number of term loan facilities | facility | 2 | ||
Amount available | $ 55 | ||
Undrawn letters of credit | 22 | ||
Letter of Credit | Forty Million Unsecured Letter Of Credit Facility | |||
Debt Instrument [Line Items] | |||
Amount available | 40 | ||
Letter of Credit | Fifteen Million Unsecured Letter Of Credit Facility | |||
Debt Instrument [Line Items] | |||
Amount available | $ 15 | ||
Minimum | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Commitment Fee | 0.15% | ||
Maximum | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Commitment Fee | 0.30% | ||
Term Loan A | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Debt, aggregate principal amount | $ 800 | ||
Quarterly principal payment, percentage | 1.25% | ||
Revolving Credit Facility | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity | $ 1,000 | ||
Line of credit maturity period | 5 years | ||
Available capacity amount | $ 782 | ||
Senior unsecured notes | Six hundred million senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Debt, aggregate principal amount | $ 600 | ||
Interest Rate Percentage | 4.625% | ||
Debt maturity period | 10 years | ||
LIBOR | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.75% | ||
LIBOR | Senior Secured Credit Facility - Amended | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.25% | ||
LIBOR | Senior Secured Credit Facility - Amended | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 2.00% | ||
Base Rate | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 0.75% | ||
Base Rate | Senior Secured Credit Facility - Amended | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 0.25% | ||
Base Rate | Senior Secured Credit Facility - Amended | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.00% |
Leases Leases - Supplemental ba
Leases Leases - Supplemental balance sheet (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease assets | $ 269.3 | $ 0 |
Finance lease assets | 151.3 | |
Total lease assets | 420.6 | |
Current liabilities operating leases | 64.3 | |
Current liabilities financing leases | 29.3 | |
Noncurrent liabilities operating leases | 217.9 | $ 0 |
Noncurrent liabilities financing leases | 110.4 | |
Total lease liabilities | $ 421.9 |
Leases Leases - Lease cost (Det
Leases Leases - Lease cost (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Lease, Cost [Abstract] | ||
Operating lease cost(a) | $ 71.2 | |
Short-term lease cost | 18.6 | |
Amortization of right-of-use assets | 20.6 | |
Interest on lease liabilities | 5.5 | |
Total lease cost | $ 115.9 | $ 109.7 |
Leases Leases - Other informati
Leases Leases - Other information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 70.8 |
Operating cash flows from finance leases | 5.5 |
Financing cash flows from finance leases | 21.1 |
Leased assets obtained in exchange for new operating lease obligations | 42.9 |
Leased assets obtained in exchange for new finance lease obligations | $ 46.2 |
Weighted average remaining lease term operating leases (years) | 7 years 4 months 24 days |
Weighted average remaining lease term finance leases (years) | 5 years 2 months 12 days |
Weighted average discount rate operating leases (percent) | 7.00% |
Weighted average discount rate finance leases (percent) | 5.20% |
Leases Leases - Operating futur
Leases Leases - Operating future minimum lease payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | |
2019 | $ 83 |
2020 | 67.2 |
2021 | 51.3 |
2022 | 39.7 |
2023 | 31.8 |
Later years | 130.3 |
Future minimum payments due | 403.3 |
Facilities | |
Operating Leased Assets [Line Items] | |
2019 | 51.7 |
2020 | 46.2 |
2021 | 39.5 |
2022 | 33.8 |
2023 | 29.4 |
Later years | 130.3 |
Future minimum payments due | 330.9 |
Vehicles | |
Operating Leased Assets [Line Items] | |
2019 | 9.7 |
2020 | 5.5 |
2021 | 2.3 |
2022 | 0.6 |
2023 | 0.1 |
Later years | 0 |
Future minimum payments due | 18.2 |
Other | |
Operating Leased Assets [Line Items] | |
2019 | 21.6 |
2020 | 15.5 |
2021 | 9.5 |
2022 | 5.3 |
2023 | 2.3 |
Later years | 0 |
Future minimum payments due | $ 54.2 |
Leases Leases - Financing lease
Leases Leases - Financing leases minimum repayments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 25.1 |
2020 | 23.5 |
2021 | 21.7 |
2022 | 19.7 |
2023 | 16.2 |
Later years | 14.3 |
Total | $ 120.5 |
Share-based compensation plan_2
Share-based compensation plans - Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | $ 9.8 | $ 6.3 | $ 35.9 | $ 18.8 |
Income tax benefit | (2.3) | (1.5) | (8.3) | (4.4) |
Share-based payment expense, net of tax | 7.5 | 4.8 | 27.6 | 14.4 |
Performance Shares Units PSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | 7 | 3.1 | 21.6 | 9.7 |
Market Share Units MSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | 0 | 0 | 0 | 0.1 |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | 1.4 | 1.6 | 5.3 | 4.9 |
Deferred Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | 0.3 | 0.4 | 0.9 | 0.9 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | $ 1.1 | $ 1.2 | $ 8.1 | $ 3.2 |
Share-based compensation plan_3
Share-based compensation plans - Stock activity - RSU, PSU, MSU, DSU (Details) - $ / shares | 6 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Sep. 30, 2019 | Dec. 31, 2018 | |
Restricted Stock Units | |||
Shares (in thousands) | |||
Nonvested, beginning balance, shares | 235,800 | ||
Granted, shares | 92,200 | ||
Forfeited, shares | (9,900) | ||
Vested, shares | (133,800) | ||
Nonvested, ending balance, shares | 184,300 | 235,800 | |
Weighted-Average Grant Date Fair Value Per Share | |||
Nonvested, beginning balance (dollars per share) | $ 52.63 | ||
Granted (dollars per share) | 78.08 | ||
Forfeited (dollars per share) | 71.65 | ||
Vested (dollars per share) | 42.92 | ||
Nonvested, ending balance (dollars per share) | $ 71.74 | $ 52.63 | |
Performance Shares Units PSU | |||
Shares (in thousands) | |||
Nonvested, beginning balance, shares | 697,300 | ||
Granted, shares | 202,900 | ||
Forfeited, shares | (19,200) | ||
Vested, shares | (316,100) | ||
Nonvested, ending balance, shares | 564,900 | 697,300 | |
Weighted-Average Grant Date Fair Value Per Share | |||
Nonvested, beginning balance (dollars per share) | $ 47.74 | ||
Granted (dollars per share) | 81.42 | ||
Forfeited (dollars per share) | 72.64 | ||
Vested (dollars per share) | 32.35 | ||
Nonvested, ending balance (dollars per share) | $ 70.01 | $ 47.74 | |
Actual shares earned and distributed (shares) | 129,100,000 | 225,900,000 | |
Target shares (shares) | 129.1 | 187 | |
Deferred Stock Units | |||
Shares (in thousands) | |||
Nonvested, beginning balance, shares | 12,500 | ||
Granted, shares | 12,100 | ||
Vested, shares | (12,500) | ||
Nonvested, ending balance, shares | 12,100 | 12,500 | |
Weighted-Average Grant Date Fair Value Per Share | |||
Nonvested, beginning balance (dollars per share) | $ 74.43 | ||
Granted (dollars per share) | 79.69 | ||
Vested (dollars per share) | 74.43 | ||
Nonvested, ending balance (dollars per share) | $ 79.69 | $ 74.43 |
Share-based compensation plan_4
Share-based compensation plans - Option Activity (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Performance-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, shares | shares | 1,287,000 |
Granted, shares | shares | 0 |
Forfeited, shares | shares | 0 |
Exercised, shares | shares | 0 |
Ending balance, shares | shares | 1,287,000 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (dollars per share) | $ / shares | $ 10.88 |
Granted (dollars per share) | $ / shares | 0 |
Forfeited (dollars per share) | $ / shares | 0 |
Exercised (dollars per share) | $ / shares | 0 |
Ending balance (dollars per share) | $ / shares | $ 14 |
Time Based Vesting Option | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, shares | shares | 2,700 |
Granted, shares | shares | 138,700 |
Forfeited, shares | shares | (14,400) |
Exercised, shares | shares | 0 |
Ending balance, shares | shares | 127,000 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (dollars per share) | $ / shares | $ 21.09 |
Granted (dollars per share) | $ / shares | 21.58 |
Forfeited (dollars per share) | $ / shares | 21.60 |
Exercised (dollars per share) | $ / shares | 0 |
Ending balance (dollars per share) | $ / shares | $ 21.56 |
Capital Stock Capital Stock (De
Capital Stock Capital Stock (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Feb. 25, 2019 | Dec. 31, 2018 | Oct. 14, 2019 | Sep. 30, 2019 | May 08, 2017 | |
Subsequent Event [Line Items] | |||||
Shares of common stock authorized (in shares) | 100,000,000 | 100,000,000 | |||
Shares issued and outstanding (in shares) | 49,700,000 | 50,000,000 | |||
Maximum shares allowed for issuance (in shares) | 2,000,000 | ||||
Par value (in dollars per share) | $ 10 | ||||
Stock repurchase program amount | $ 200,000,000 | ||||
Stock repurchase program remaining amount | $ 106,000,000 | ||||
Stock repurchased and retired during period, shares | 610,177 | ||||
Stock repurchase program amount used | $ 43,500,000 | ||||
Average price per share (in dollars per share) | $ 71.22 | ||||
ASR December 2018 | |||||
Subsequent Event [Line Items] | |||||
Accelerated share repurchased payment | $ 50,000,000 | ||||
Stock repurchased and retired during period, shares | 700,000 | ||||
ASR, initial price per share (in dollars per share) | $ 71.43 | ||||
ASR February 2019 | |||||
Subsequent Event [Line Items] | |||||
Stock repurchased and retired during period, shares | 37,387 | ||||
ASR, final price per share (in dollars per share) | $ 67.81 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared (in dollars per share) | $ 0.15 |
Capital Stock - Shares Used To
Capital Stock - Shares Used To Calculate Earnings (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Equity [Abstract] | ||||
Basic (shares) | 50.3 | 51.1 | 50.2 | 51 |
Effect of dilutive stock options and awards (shares) | 0.8 | 0.9 | 0.8 | 0 |
Diluted (shares) | 51.1 | 52 | 51 | 51 |
Antidilutive stock options and awards excluded from denominator (shares) | 0.1 | 0 | 0.1 | 1.6 |
Deferred compensation common stock unit (shares) | 0.3 | 0.3 | 0.3 | 0.3 |
Supplemental cash flow inform_3
Supplemental cash flow information (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Interest | $ 56 | $ 38.5 | ||
Income taxes, net | 33.4 | 72.8 | ||
Financing Leases | 46.2 | 42 | ||
Restricted cash | 89.2 | $ 136.1 | ||
Cash and cash equivalents | 337 | 343.4 | ||
Cash, Cash Equivalents, and Restricted Cash | 426.2 | $ 406.9 | 479.5 | $ 726.9 |
Cash from Short Term Borrowings | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | 10 | 10.5 | ||
Cash Held From Customers | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | 38.5 | 90.3 | ||
Deposits liability | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | $ 40.7 | $ 35.3 |
Reorganization and Restructur_2
Reorganization and Restructuring (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reorganization and Restructuring 2016 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 11.3 | $ 17.3 | $ 18.1 | |
Minimum | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected costs | $ 1 | |||
Maximum | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected costs | 3 | |||
Severance Costs | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 20.5 | $ 4.2 |
Subsequent Events Subsequent _2
Subsequent Events Subsequent Events (Details) $ in Millions | Oct. 08, 2019USD ($)beneficiaryparticipant | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Subsequent Event, Date | Oct. 8, 2019 | ||||
Pension plans | |||||
Subsequent Event [Line Items] | |||||
Settlement charge | $ (0.6) | $ (0.4) | $ (1.5) | $ (1.4) | |
U.S. Plans | Pension plans | |||||
Subsequent Event [Line Items] | |||||
Settlement charge | $ 0 | $ 0 | $ 0 | $ 0 | |
U.S. Plans | Pension plans | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Annuity Buy Out Number of Participants | participant | 2,634 | ||||
Plan asset payment for settlement | $ 53 | ||||
Primary U.S. Pension Plan Obligation Settled | 54 | ||||
Settlement charge | $ 20 | ||||
Pension Plan Beneficiaries | beneficiary | 11,400 |