THE BRINK’S COMPANY | ||||||||
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of | (I.R.S. Employer | |||||||
incorporation or organization) | Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
(In millions, except for per share amounts) | September 30, 2020 | December 31, 2019 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | ||||||||||
Restricted cash | |||||||||||
Accounts receivable, net | |||||||||||
Prepaid expenses and other | |||||||||||
Total current assets | |||||||||||
Right-of-use assets, net | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Other intangibles | |||||||||||
Deferred income taxes | |||||||||||
Other | |||||||||||
Total assets | $ | ||||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term borrowings | $ | ||||||||||
Current maturities of long-term debt | |||||||||||
Accounts payable | |||||||||||
Accrued liabilities | |||||||||||
Restricted cash held for customers | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Accrued pension costs | |||||||||||
Retirement benefits other than pensions | |||||||||||
Lease liabilities | |||||||||||
Deferred income taxes | |||||||||||
Other | |||||||||||
Total liabilities | |||||||||||
Commitments and contingent liabilities (notes 4, 8 and 14) | |||||||||||
Equity: | |||||||||||
The Brink's Company ("Brink's") shareholders: | |||||||||||
Common stock, par value $ | |||||||||||
Shares authorized: | |||||||||||
Shares issued and outstanding: 2020 - | |||||||||||
Capital in excess of par value | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Brink’s shareholders | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In millions, except for per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Revenues | $ | $ | |||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of revenues | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Total costs and expenses | |||||||||||||||||||||||
Other operating income (expense) | ( | ( | ( | ( | |||||||||||||||||||
Operating profit | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Interest and other nonoperating income (expense) | ( | ( | ( | ( | |||||||||||||||||||
Income (loss) from continuing operations before tax | ( | ||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Income (loss) from continuing operations | ( | ( | |||||||||||||||||||||
Loss from discontinued operations, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) | ( | ( | |||||||||||||||||||||
Less net income attributable to noncontrolling interests | |||||||||||||||||||||||
Net income (loss) attributable to Brink’s | ( | ( | |||||||||||||||||||||
Amounts attributable to Brink’s | |||||||||||||||||||||||
Continuing operations | ( | ( | |||||||||||||||||||||
Discontinued operations | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) attributable to Brink’s | $ | ( | $ | ( | |||||||||||||||||||
Income (loss) per share attributable to Brink’s common shareholders(a): | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Continuing operations | $ | ( | $ | ( | |||||||||||||||||||
Discontinued operations | ( | ( | ( | ||||||||||||||||||||
Net income (loss) | $ | ( | $ | ( | |||||||||||||||||||
Diluted: | |||||||||||||||||||||||
Continuing operations | $ | ( | $ | ( | |||||||||||||||||||
Discontinued operations | ( | ( | ( | ||||||||||||||||||||
Net income (loss) | $ | ( | $ | ( | |||||||||||||||||||
Weighted-average shares | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Cash dividends paid per common share | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income (loss) | $ | ( | $ | ( | |||||||||||||||||||
Benefit plan adjustments: | |||||||||||||||||||||||
Benefit plan actuarial gains | |||||||||||||||||||||||
Benefit plan prior service costs | ( | ( | ( | ( | |||||||||||||||||||
Deferred profit sharing | |||||||||||||||||||||||
Total benefit plan adjustments | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ||||||||||||||||||||
Gains (losses) on cash flow hedges | ( | ( | ( | ||||||||||||||||||||
Other comprehensive income (loss) before tax | ( | ( | ( | ||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Less comprehensive income attributable to noncontrolling interests | |||||||||||||||||||||||
Comprehensive income (loss) attributable to Brink's | $ | ( | $ | ( |
Nine Months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
(In millions) | Shares | Common Stock | Capital in Excess of Par Value | Retained Earnings | AOCI* | Noncontrolling Interests | Total | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | ( | |||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle(a) | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Dividends to: | |||||||||||||||||||||||||||||||||||||||||
Brink’s common shareholders ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation: | |||||||||||||||||||||||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||||||||||||||||||||||
Compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other share-based benefit transactions | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | $ | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Dividends to: | |||||||||||||||||||||||||||||||||||||||||
Brink’s common shareholders ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation: | |||||||||||||||||||||||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||||||||||||||||||||||
Compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other share-based benefit transactions | — | — | — | ||||||||||||||||||||||||||||||||||||||
Acquisitions with noncontrolling interests | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | ( | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Shares repurchased | ( | ( | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Dividends to: | |||||||||||||||||||||||||||||||||||||||||
Brink’s common shareholders ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation: | |||||||||||||||||||||||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||||||||||||||||||||||
Compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other share-based benefit transactions | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Acquisitions with noncontrolling interests | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | $ | ( |
Nine Months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
(In millions) | Shares | Common Stock | Capital in Excess of Par Value | Retained Earnings | AOCI* | Noncontrolling Interests | Total | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | ( | |||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle(a) | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Shares repurchased | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||
Dividends to: | |||||||||||||||||||||||||||||||||||||||||
Brink’s common shareholders ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation: | |||||||||||||||||||||||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||||||||||||||||||||||
Compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other share-based benefit transactions | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2019 | $ | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Dividends to: | |||||||||||||||||||||||||||||||||||||||||
Brink’s common shareholders ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation: | |||||||||||||||||||||||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||||||||||||||||||||||
Compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other share-based benefit transactions | — | — | — | ||||||||||||||||||||||||||||||||||||||
Capital contributions from noncontrolling interest | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||
Dividends to: | |||||||||||||||||||||||||||||||||||||||||
Brink’s common shareholders ($ | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Noncontrolling interests | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation: | |||||||||||||||||||||||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||||||||||||||||||||||
Compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other share-based benefit transactions | — | — | ( | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Capital contributions from noncontrolling interest | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2019 | $ | ( |
Nine Months Ended September 30, | |||||||||||
(In millions) | 2020 | 2019 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | ( | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Loss from discontinued operations, net of tax | |||||||||||
Depreciation and amortization | |||||||||||
Share-based compensation expense | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Gains on sale of property, equipment and marketable securities | ( | ( | |||||||||
Gains on business dispositions | ( | ||||||||||
Impairment losses | |||||||||||
Retirement benefit funding less than expense: | |||||||||||
Pension | |||||||||||
Other than pension | |||||||||||
Remeasurement losses due to Argentina currency devaluations | |||||||||||
Other operating | |||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||||||
Accounts receivable and income taxes receivable | ( | ( | |||||||||
Accounts payable, income taxes payable and accrued liabilities | ( | ( | |||||||||
Restricted cash held for customers | ( | ||||||||||
Customer obligations | ( | ||||||||||
Prepaid and other current assets | ( | ( | |||||||||
Other | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Acquisitions, net of cash acquired | ( | ( | |||||||||
Dispositions, net of cash disposed | ( | ||||||||||
Marketable securities: | |||||||||||
Purchases | ( | ( | |||||||||
Sales | |||||||||||
Cash proceeds from sale of property and equipment | |||||||||||
Acquisition of customer contracts | ( | ( | |||||||||
Net cash used by investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings (repayments) of debt: | |||||||||||
Short-term borrowings | ( | ( | |||||||||
Cash supply chain customer debt | ( | — | |||||||||
Long-term revolving credit facilities: | |||||||||||
Borrowings | |||||||||||
Repayments | ( | ( | |||||||||
Other long-term debt: | |||||||||||
Borrowings | |||||||||||
Repayments | ( | ( | |||||||||
Payment of acquisition-related obligation | ( | ( | |||||||||
Debt financing costs | ( | ( | |||||||||
Repurchase shares of Brink's common stock | ( | — | |||||||||
Dividends to: | |||||||||||
Shareholders of Brink’s | ( | ( | |||||||||
Noncontrolling interests in subsidiaries | ( | ( | |||||||||
Tax withholdings associated with share-based compensation | ( | ( | |||||||||
Other | ( | ||||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Cash, cash equivalents and restricted cash: | |||||||||||
Increase (decrease) | ( | ||||||||||
Balance at beginning of period | |||||||||||
Balance at end of period | $ |
(In millions) | Core Services | High-Value Services | Other Security Services | Total | |||||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||
North America | $ | ||||||||||||||||||||||
South America | |||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||
Total reportable segments | |||||||||||||||||||||||
Three months ended September 30, 2019 | |||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||
North America | $ | ||||||||||||||||||||||
South America | |||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||
Total reportable segments | |||||||||||||||||||||||
Not Allocated to Segments: | |||||||||||||||||||||||
Acquisitions and dispositions | ( | ( | |||||||||||||||||||||
Internal loss(a) | — | — | |||||||||||||||||||||
Total | $ | ||||||||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||
North America | $ | ||||||||||||||||||||||
South America | |||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||
Total reportable segments | |||||||||||||||||||||||
Nine months ended September 30, 2019 | |||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||
North America | $ | ||||||||||||||||||||||
South America | |||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||
Total reportable segments | |||||||||||||||||||||||
Not Allocated to Segments: | |||||||||||||||||||||||
Acquisitions and dispositions | ( | ( | |||||||||||||||||||||
Internal loss(a) | |||||||||||||||||||||||
Total | $ |
(In millions) | Receivables | Contract Asset | Contract Liability | ||||||||||||||
Opening (January 1, 2020) | $ | ||||||||||||||||
Closing (September 30, 2020) | |||||||||||||||||
Increase (decrease) | $ | ( | ( |
Revenues | Operating Profit | ||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||
North America | $ | $ | |||||||||||||||||||||
South America | |||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||
Total reportable segments | |||||||||||||||||||||||
Reconciling Items: | |||||||||||||||||||||||
Corporate expenses: | |||||||||||||||||||||||
General, administrative and other expenses | — | — | ( | ( | |||||||||||||||||||
Foreign currency transaction gains (losses) | — | — | ( | ( | |||||||||||||||||||
Reconciliation of segment policies to GAAP(a) | — | — | ( | ||||||||||||||||||||
Other items not allocated to segments: | |||||||||||||||||||||||
Reorganization and Restructuring | — | — | ( | ( | |||||||||||||||||||
Acquisitions and dispositions | ( | ( | ( | ||||||||||||||||||||
Argentina highly inflationary impact | — | — | ( | ( | |||||||||||||||||||
Internal loss(b) | ( | ||||||||||||||||||||||
Reporting compliance(c) | — | — | ( | ||||||||||||||||||||
Total | $ | $ |
Revenues | Operating Profit | ||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||
North America | $ | $ | |||||||||||||||||||||
South America | |||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||
Total reportable segments | |||||||||||||||||||||||
Reconciling Items: | |||||||||||||||||||||||
Corporate expenses: | |||||||||||||||||||||||
General, administrative and other expenses | — | — | ( | ( | |||||||||||||||||||
Foreign currency transaction gains (losses) | — | — | ( | ||||||||||||||||||||
Reconciliation of segment policies to GAAP(a) | — | — | |||||||||||||||||||||
Other items not allocated to segments: | |||||||||||||||||||||||
Reorganization and Restructuring | — | — | ( | ( | |||||||||||||||||||
Acquisitions and dispositions | ( | ( | ( | ||||||||||||||||||||
Argentina highly inflationary impact | — | — | ( | ( | |||||||||||||||||||
Internal loss(b) | ( | ( | |||||||||||||||||||||
Reporting compliance(c) | — | — | ( | ( | |||||||||||||||||||
Total | $ | $ |
September 30, | December 31, | ||||||||||
(in millions) | 2020 | 2019 | |||||||||
Assets held by Reportable Segment | |||||||||||
North America | $ | ||||||||||
South America | |||||||||||
Rest of World | |||||||||||
Total reportable segments | |||||||||||
Corporate items | |||||||||||
Total | $ |
U.S. Plans | Non-U.S. Plans | Total | |||||||||||||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||||||||||||||
Service cost | $ | ||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligation | |||||||||||||||||||||||||||||||||||
Return on assets – expected | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Amortization of losses | |||||||||||||||||||||||||||||||||||
Amortization of prior service credit | ( | ( | |||||||||||||||||||||||||||||||||
Settlement loss | |||||||||||||||||||||||||||||||||||
Net periodic pension cost | $ | ||||||||||||||||||||||||||||||||||
Nine months ended September 30, | |||||||||||||||||||||||||||||||||||
Service cost | $ | ||||||||||||||||||||||||||||||||||
Interest cost on projected benefit obligation | |||||||||||||||||||||||||||||||||||
Return on assets – expected | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Amortization of losses | |||||||||||||||||||||||||||||||||||
Settlement loss | |||||||||||||||||||||||||||||||||||
Net periodic pension cost | $ | ||||||||||||||||||||||||||||||||||
UMWA Plans | Black Lung and Other Plans | Total | |||||||||||||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Three months ended September 30, | |||||||||||||||||||||||||||||||||||
Interest cost on accumulated postretirement benefit obligations | $ | ||||||||||||||||||||||||||||||||||
Return on assets – expected | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amortization of losses | |||||||||||||||||||||||||||||||||||
Amortization of prior service (credit) cost | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Net periodic postretirement cost | $ | ||||||||||||||||||||||||||||||||||
Nine months ended September 30, | |||||||||||||||||||||||||||||||||||
Service cost | $ | ||||||||||||||||||||||||||||||||||
Interest cost on accumulated postretirement benefit obligations | |||||||||||||||||||||||||||||||||||
Return on assets – expected | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amortization of losses | |||||||||||||||||||||||||||||||||||
Amortization of prior service credit | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Net periodic postretirement cost | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Continuing operations | |||||||||||||||||||||||
Provision for income taxes (in millions) | $ | $ | |||||||||||||||||||||
Effective tax rate | % | % | ( | %) | % |
(In millions) | Estimated Fair Value at Acquisition Date | ||||
Fair value of purchase consideration | |||||
Cash paid through September 30, 2020 | $ | ||||
Contingent consideration | |||||
Liabilities assumed from seller | |||||
Receivable from seller | ( | ||||
Fair value of purchase consideration | $ | ||||
Fair value of net assets acquired | |||||
Cash | $ | ||||
Restricted cash | |||||
Accounts receivable | |||||
Other current assets | |||||
Property and equipment, net | |||||
Right-of-use assets, net | |||||
Intangible assets(a) | |||||
Goodwill(b) | |||||
Other noncurrent assets | |||||
Current liabilities | ( | ||||
Lease liabilities | ( | ||||
Other noncurrent liabilities | ( | ||||
Fair value of net assets acquired | $ | ||||
Less: Fair value of noncontrolling interest | ( | ||||
Fair value of purchase consideration | $ |
(In millions) | Fair Value at Acquisition Date | ||||
Fair value of purchase consideration | |||||
Cash paid through September 30, 2020 | $ | ||||
Indemnification asset | ( | ||||
Fair value of purchase consideration | $ | ||||
Fair value of net assets acquired | |||||
Cash | $ | ||||
Accounts receivable | |||||
Other current assets | |||||
Property and equipment, net | |||||
Intangible assets(a) | |||||
Goodwill(b) | |||||
Other noncurrent assets | |||||
Current liabilities | ( | ||||
Noncurrent liabilities | ( | ||||
Fair value of net assets acquired | $ |
(In millions) | Estimated Fair Value at Acquisition Date | ||||
Fair value of purchase consideration | |||||
Cash paid through September 30, 2020 | $ | ||||
Contingent consideration | |||||
Indemnification asset | ( | ||||
Fair value of purchase consideration | $ | ||||
Fair value of net assets acquired | |||||
Cash | $ | ||||
Accounts receivable | |||||
Property and equipment, net | |||||
Intangible assets(a) | |||||
Goodwill(b) | |||||
Other current and noncurrent assets | |||||
Current liabilities | ( | ||||
Noncurrent liabilities | ( | ||||
Fair value of net assets acquired | $ |
(In millions) | Revenue | Net income (loss) attributable to Brink's | |||||||||
Three months ended September 30, 2020 | |||||||||||
G4S | $ | ||||||||||
Total | $ | ||||||||||
Nine months ended September 30, 2020 | |||||||||||
G4S | $ | ||||||||||
Total | $ | ||||||||||
(In millions) | Revenue | Net income (loss) attributable to Brink's | |||||||||
Pro forma results of Brink's for the three months ended September 30, | |||||||||||
2020 | |||||||||||
Brink's as reported | $ | ( | |||||||||
G4S(a) | ( | ||||||||||
Total | $ | ( | |||||||||
2019 | |||||||||||
Brink's as reported | $ | ||||||||||
G4S(a) | |||||||||||
Other acquisitions(a) | |||||||||||
Total | $ | ||||||||||
Pro forma results of Brink's for the nine months ended September 30, | |||||||||||
2020 | |||||||||||
Brink's as reported | $ | ( | |||||||||
G4S(a) | ( | ||||||||||
Total | $ | ( | |||||||||
2019 | |||||||||||
Brink's as reported | $ | ||||||||||
G4S(a) | |||||||||||
Rodoban(a) | |||||||||||
Other 2019 acquisitions(a) | |||||||||||
Total | $ |
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, 2020 | |||||||||||||||||||||||||||||
Amounts attributable to Brink's: | |||||||||||||||||||||||||||||
Benefit plan adjustments | $ | ( | ( | ||||||||||||||||||||||||||
Foreign currency translation adjustments(b) | |||||||||||||||||||||||||||||
Gains (losses) on cash flow hedges | ( | ( | |||||||||||||||||||||||||||
( | ( | ||||||||||||||||||||||||||||
Amounts attributable to noncontrolling interests: | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Benefit plan adjustments(a) | ( | ( | |||||||||||||||||||||||||||
Foreign currency translation adjustments(b) | |||||||||||||||||||||||||||||
Gains (losses) on cash flow hedges(c) | ( | ( | |||||||||||||||||||||||||||
$ | ( | ( | |||||||||||||||||||||||||||
Three months ended September 30, 2019 | |||||||||||||||||||||||||||||
Amounts attributable to Brink's: | |||||||||||||||||||||||||||||
Benefit plan adjustments | $ | ( | ( | ||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||||||||||||||||||||
Gains (losses) on cash flow hedges | ( | ( | ( | ||||||||||||||||||||||||||
( | ( | ( | |||||||||||||||||||||||||||
Amounts attributable to noncontrolling interests: | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Benefit plan adjustments(a) | ( | ( | |||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||||||||||||||||||||
Gains (losses) on cash flow hedges(c) | ( | ( | ( | ||||||||||||||||||||||||||
$ | ( | ( | ( |
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, 2020 | |||||||||||||||||||||||||||||
Amounts attributable to Brink's: | |||||||||||||||||||||||||||||
Benefit plan adjustments | $ | ( | ( | ||||||||||||||||||||||||||
Foreign currency translation adjustments(b) | ( | ( | |||||||||||||||||||||||||||
Gains (losses) on cash flow hedges | ( | ( | ( | ||||||||||||||||||||||||||
( | ( | ( | ( | ||||||||||||||||||||||||||
Amounts attributable to noncontrolling interests: | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Benefit plan adjustments(a) | ( | ( | |||||||||||||||||||||||||||
Foreign currency translation adjustments(b) | ( | ( | |||||||||||||||||||||||||||
Gains (losses) on cash flow hedges(c) | ( | ( | ( | ||||||||||||||||||||||||||
$ | ( | ( | ( | ( | |||||||||||||||||||||||||
Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||
Amounts attributable to Brink's: | |||||||||||||||||||||||||||||
Benefit plan adjustments | $ | ( | ( | ||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||||||||||||||||||||
Gains (losses) on cash flow hedges | ( | ( | ( | ||||||||||||||||||||||||||
( | ( | ( | |||||||||||||||||||||||||||
Amounts attributable to noncontrolling interests: | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | |||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Benefit plan adjustments(a) | ( | ( | |||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||||||||||||||||||||
Gains (losses) on cash flow hedges(c) | ( | ( | ( | ||||||||||||||||||||||||||
$ | ( | ( | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Total net periodic retirement benefit cost included in: | |||||||||||||||||||||||
Cost of revenues | $ | $ | |||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Interest and other nonoperating income (expense) |
(In millions) | Benefit Plan Adjustments | Foreign Currency Translation Adjustments | Gains (Losses) on Cash Flow Hedges | Total | |||||||||||||||||||
Balance as of December 31, 2019 | $ | ( | ( | ( | ( | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | ( | ||||||||||||||||||||||
Other comprehensive income (loss) attributable to Brink's | ( | ( | ( | ||||||||||||||||||||
Balance as of September 30, 2020 | $ | ( | ( | ( | ( |
(In millions) | September 30, 2020 | December 31, 2019 | |||||||||
$600 million Senior unsecured notes | |||||||||||
Carrying value | $ | ||||||||||
Fair value | |||||||||||
$400 million Senior unsecured notes | |||||||||||
Carrying value | |||||||||||
Fair value |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Derivative instrument gains (losses) included in other operating income (expense) | $ | ( | $ | ||||||||||||||||||||
Derivative instrument losses included in other nonoperating income (expense)(a) | ( | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Derivative instrument gains included in other operating income (expense) | $ | $ | |||||||||||||||||||||
Offsetting transaction losses | ( | ( | ( | ( | |||||||||||||||||||
Derivative instrument losses included in interest expense | ( | ( | ( | ( | |||||||||||||||||||
Net derivative instrument gains |
(In millions) | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||
Derivative instrument losses included in interest expense | $ |
September 30, | December 31, | ||||||||||
(In millions) | 2020 | 2019 | |||||||||
Debt: | |||||||||||
Short-term borrowings | |||||||||||
Restricted cash borrowings(a) | $ | ||||||||||
Other | |||||||||||
Total short-term borrowings | $ | ||||||||||
Long-term debt | |||||||||||
Bank credit facilities: | |||||||||||
Term loan A(b) | $ | ||||||||||
Senior unsecured notes(c) | |||||||||||
Revolving Credit Facility | |||||||||||
Other | |||||||||||
Financing leases | |||||||||||
Total long-term debt | $ | ||||||||||
Total debt | $ | ||||||||||
Included in: | |||||||||||
Current liabilities | $ | ||||||||||
Noncurrent liabilities | |||||||||||
Total debt | $ |
(In millions) | |||||
December 31, 2019 | $ | ||||
Cumulative effect of change in accounting principle | |||||
Provision for uncollectible accounts receivable(a) | |||||
Write-offs less recoveries | ( | ||||
Foreign currency exchange effects | ( | ||||
September 30, 2020 | $ |
Compensation Expense | Compensation Expense | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Performance share units | $ | $ | |||||||||||||||||||||
Restricted stock units | |||||||||||||||||||||||
Deferred stock units and fees paid in stock | |||||||||||||||||||||||
Performance-based stock options | |||||||||||||||||||||||
Time-based vesting stock options | |||||||||||||||||||||||
Cash based awards | |||||||||||||||||||||||
Share-based payment expense | |||||||||||||||||||||||
Income tax benefit | ( | ( | ( | ( | |||||||||||||||||||
Share-based payment expense, net of tax | $ | $ |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | ||||||||||
Outstanding balance as of December 31, 2019 | $ | ||||||||||
Granted | |||||||||||
Forfeited | |||||||||||
Exercised | |||||||||||
Outstanding balance as of September 30, 2020 | $ |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | ||||||||||
Outstanding balance as of December 31, 2019 | $ | ||||||||||
Granted | |||||||||||
Forfeited | |||||||||||
Exercised | |||||||||||
Outstanding balance as of September 30, 2020 | $ |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | ||||||||||
Nonvested balance as of December 31, 2019 | $ | ||||||||||
Granted | |||||||||||
Forfeited | ( | ||||||||||
Conversion to cash settled awards(a) | ( | ||||||||||
Vested | ( | ||||||||||
Nonvested balance as of September 30, 2020 | $ |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | ||||||||||
Nonvested balance as of December 31, 2019 | $ | ||||||||||
Granted | |||||||||||
Forfeited | ( | ||||||||||
Conversion to cash settled awards(a) | ( | ||||||||||
Vested(b) | ( | ||||||||||
Nonvested balance as of September 30, 2020 | $ |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | ||||||||||
Nonvested balance as of December 31, 2019 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Nonvested balance as of September 30, 2020 | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Weighted-average shares: | |||||||||||||||||||||||
Basic(a) | |||||||||||||||||||||||
Effect of dilutive stock awards and options | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Antidilutive stock awards and options excluded from denominator |
Nine Months Ended September 30, | |||||||||||
(In millions) | 2020 | 2019 | |||||||||
Cash paid for: | |||||||||||
Interest | $ | ||||||||||
Income taxes, net |
September 30, | December 31, | ||||||||||
(In millions) | 2020 | 2019 | |||||||||
Cash and cash equivalents | $ | ||||||||||
Restricted cash | |||||||||||
Total, cash, cash equivalents, and restricted cash in the condensed consolidated statements of cash flows | $ |
(In millions) | Severance Costs | Other | Total | ||||||||||||||
Balance as of January 1, 2020 | $ | ||||||||||||||||
Expense | |||||||||||||||||
Payments and utilization | ( | ( | ( | ||||||||||||||
Accrual adjustment | ( | — | ( | ||||||||||||||
Foreign currency exchange effects | ( | ( | |||||||||||||||
Balance as of September 30, 2020 | $ |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
(In millions, except for per share amounts) | 2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||||||||||||||||||
GAAP | |||||||||||||||||||||||||||||||||||
Revenues | $ | 970.5 | 928.4 | 5 | 2,669.3 | 2,747.4 | (3) | ||||||||||||||||||||||||||||
Cost of revenues | 742.9 | 714.4 | 4 | 2,120.2 | 2,125.6 | — | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | 141.4 | 155.0 | (9) | 429.1 | 451.3 | (5) | |||||||||||||||||||||||||||||
Operating profit (loss) | 76.4 | 52.5 | 46 | 101.6 | 163.5 | (38) | |||||||||||||||||||||||||||||
Income from continuing operations(a) | (23.8) | 5.8 | unfav | (8.3) | 32.1 | unfav | |||||||||||||||||||||||||||||
Diluted EPS from continuing operations(a) | $ | (0.47) | 0.11 | unfav | (0.17) | 0.63 | unfav | ||||||||||||||||||||||||||||
Non-GAAP(b) | |||||||||||||||||||||||||||||||||||
Non-GAAP revenues | $ | 970.5 | 924.6 | 5 | 2,669.3 | 2,743.9 | (3) | ||||||||||||||||||||||||||||
Non-GAAP operating profit | 99.9 | 102.4 | (2) | 236.2 | 276.0 | (14) | |||||||||||||||||||||||||||||
Non-GAAP income from continuing operations(a) | 43.4 | 53.6 | (19) | 104.3 | 138.5 | (25) | |||||||||||||||||||||||||||||
Non-GAAP diluted EPS from continuing operations(a) | $ | 0.86 | 1.05 | (18) | 2.05 | 2.72 | (25) |
Organic | Acquisitions / | % Change | |||||||||||||||||||||||||||||||||||||||
(In millions) | 3Q'19 | Change | Dispositions(a) | Currency(b) | 3Q'20 | Total | Organic | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||
North America | $ | 446.7 | (32.7) | 2.3 | (12.2) | 404.1 | (10) | (7) | |||||||||||||||||||||||||||||||||
South America | 229.0 | (15.7) | 10.8 | (52.1) | 172.0 | (25) | (7) | ||||||||||||||||||||||||||||||||||
Rest of World | 248.9 | (30.9) | 167.8 | 8.6 | 394.4 | 58 | (12) | ||||||||||||||||||||||||||||||||||
Segment revenues(e) | 924.6 | (79.3) | 180.9 | (55.7) | 970.5 | 5 | (9) | ||||||||||||||||||||||||||||||||||
Other items not allocated to segments(d) | 3.8 | (4.0) | 0.2 | — | — | (100) | unfav | ||||||||||||||||||||||||||||||||||
Revenues - GAAP | $ | 928.4 | (83.3) | 181.1 | (55.7) | 970.5 | 5 | (9) | |||||||||||||||||||||||||||||||||
Operating profit: | |||||||||||||||||||||||||||||||||||||||||
North America | $ | 38.7 | (0.1) | 0.1 | (1.8) | 36.9 | (5) | — | |||||||||||||||||||||||||||||||||
South America | 59.4 | (8.3) | 1.2 | (13.4) | 38.9 | (35) | (14) | ||||||||||||||||||||||||||||||||||
Rest of World | 32.2 | 2.2 | 19.5 | 0.4 | 54.3 | 69 | 7 | ||||||||||||||||||||||||||||||||||
Segment operating profit | 130.3 | (6.2) | 20.8 | (14.8) | 130.1 | — | (5) | ||||||||||||||||||||||||||||||||||
Corporate(c) | (27.9) | 5.3 | — | (7.6) | (30.2) | 8 | (19) | ||||||||||||||||||||||||||||||||||
Operating profit - non-GAAP | 102.4 | (0.9) | 20.8 | (22.4) | 99.9 | (2) | (1) | ||||||||||||||||||||||||||||||||||
Other items not allocated to segments(d) | (49.9) | 15.8 | 6.8 | 3.8 | (23.5) | (53) | (32) | ||||||||||||||||||||||||||||||||||
Operating profit - GAAP | $ | 52.5 | 14.9 | 27.6 | (18.6) | 76.4 | 46 | 28 |
Organic | Acquisitions / | % Change | |||||||||||||||||||||||||||||||||||||||
(In millions) | YTD '19 | Change | Dispositions(a) | Currency(b) | YTD '20 | Total | Organic | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||
North America | $ | 1,323.7 | (106.3) | 13.3 | (33.2) | 1,197.5 | (10) | (8) | |||||||||||||||||||||||||||||||||
South America | 684.5 | (15.4) | 18.0 | (158.3) | 528.8 | (23) | (2) | ||||||||||||||||||||||||||||||||||
Rest of World | 735.7 | (91.7) | 308.4 | (9.4) | 943.0 | 28 | (12) | ||||||||||||||||||||||||||||||||||
Segment revenues(e) | 2,743.9 | (213.4) | 339.7 | (200.9) | 2,669.3 | (3) | (8) | ||||||||||||||||||||||||||||||||||
Other items not allocated to segments(d) | 3.5 | (4.0) | 0.5 | — | — | (100) | unfav | ||||||||||||||||||||||||||||||||||
Revenues - GAAP | $ | 2,747.4 | (217.4) | 340.2 | (200.9) | 2,669.3 | (3) | (8) | |||||||||||||||||||||||||||||||||
Operating profit: | |||||||||||||||||||||||||||||||||||||||||
North America | $ | 129.1 | (37.6) | 0.7 | (4.4) | 87.8 | (32) | (29) | |||||||||||||||||||||||||||||||||
South America | 147.4 | 3.6 | 2.8 | (40.2) | 113.6 | (23) | 2 | ||||||||||||||||||||||||||||||||||
Rest of World | 82.2 | (15.9) | 36.6 | (2.2) | 100.7 | 23 | (19) | ||||||||||||||||||||||||||||||||||
Segment operating profit | 358.7 | (49.9) | 40.1 | (46.8) | 302.1 | (16) | (14) | ||||||||||||||||||||||||||||||||||
Corporate(c) | (82.7) | 28.6 | — | (11.8) | (65.9) | (20) | (35) | ||||||||||||||||||||||||||||||||||
Operating profit - non-GAAP | 276.0 | (21.3) | 40.1 | (58.6) | 236.2 | (14) | (8) | ||||||||||||||||||||||||||||||||||
Other items not allocated to segments(d) | (112.5) | (29.4) | (4.4) | 11.7 | (134.6) | 20 | 26 | ||||||||||||||||||||||||||||||||||
Operating profit - GAAP | $ | 163.5 | (50.7) | 35.7 | (46.9) | 101.6 | (38) | (31) |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||||||||||||||||||||
General, administrative and other expenses | $ | (26.6) | (26.2) | 2 | $ | (78.5) | (85.8) | (9) | |||||||||||||||||||||||||||
Foreign currency transaction gains (losses) | (7.9) | (0.4) | unfav | (11.5) | 0.2 | unfav | |||||||||||||||||||||||||||||
Reconciliation of segment policies to GAAP | 4.3 | (1.3) | fav | 24.1 | 2.9 | fav | |||||||||||||||||||||||||||||
Corporate expenses | $ | (30.2) | (27.9) | 8 | $ | (65.9) | (82.7) | (20) |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Acquisitions and dispositions | $ | — | (0.2) | (100) | $ | — | (0.5) | (100) | |||||||||||||||||||||||||||
Internal loss | — | 4.0 | (100) | — | 4.0 | (100) | |||||||||||||||||||||||||||||
Revenues | $ | — | 3.8 | (100) | $ | — | 3.5 | (100) | |||||||||||||||||||||||||||
Operating profit: | |||||||||||||||||||||||||||||||||||
Reorganization and Restructuring | $ | (5.1) | (6.4) | (20) | $ | (49.7) | (20.5) | unfav | |||||||||||||||||||||||||||
Acquisitions and dispositions | (16.2) | (24.0) | (33) | (66.2) | (63.8) | 4 | |||||||||||||||||||||||||||||
Argentina highly inflationary impact | (3.2) | (7.9) | (59) | (8.4) | (12.3) | (32) | |||||||||||||||||||||||||||||
Internal loss | 0.9 | (11.3) | fav | (9.9) | (13.9) | (29) | |||||||||||||||||||||||||||||
Reporting compliance | 0.1 | (0.3) | fav | (0.4) | (2.0) | (80) | |||||||||||||||||||||||||||||
Operating profit | $ | (23.5) | (49.9) | (53) | $ | (134.6) | (112.5) | 20 |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||||||||||||||
North America | $ | (1.6) | — | unfav | $ | (13.1) | (1.5) | unfav | |||||||||||||||||||||||||||
South America | 0.8 | (4.4) | fav | (16.2) | (5.3) | unfav | |||||||||||||||||||||||||||||
Rest of World | (4.3) | (1.8) | unfav | (19.7) | (5.1) | unfav | |||||||||||||||||||||||||||||
Total reportable segments | (5.1) | (6.2) | (18) | (49.0) | (11.9) | unfav | |||||||||||||||||||||||||||||
Corporate items | — | (0.2) | (100) | (0.7) | (8.6) | (92) | |||||||||||||||||||||||||||||
Total | $ | (5.1) | (6.4) | (20) | $ | (49.7) | (20.5) | unfav |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Derivative instrument gains (losses) included in other operating income (expense) | $ | (3.4) | 5.8 | $ | 0.5 | 8.3 | |||||||||||||||||
Derivative instrument losses included in other nonoperating income (expense)(a) | (0.5) | — | (8.6) | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Derivative instrument gains included in other operating income (expense) | $ | 0.8 | 8.9 | $ | 30.6 | 10.3 | |||||||||||||||||
Offsetting transaction losses | (0.8) | (8.9) | (30.6) | (10.3) | |||||||||||||||||||
Derivative instrument losses included in interest expense | (0.5) | (1.3) | (1.5) | (4.0) | |||||||||||||||||||
Net derivative instrument gains | 0.3 | 7.6 | 29.1 | 6.3 |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||||||||||||||||||||
Foreign currency items: | |||||||||||||||||||||||||||||||||||
Transaction gains (losses) | $ | (6.4) | (13.3) | (52) | $ | (17.3) | (18.5) | (6) | |||||||||||||||||||||||||||
Derivative instrument gains (losses) | (3.4) | 5.8 | unfav | 0.5 | 8.3 | (94) | |||||||||||||||||||||||||||||
Gains (losses) on sale of property and other assets | 0.6 | 0.4 | 50 | 0.4 | 1.6 | (75) | |||||||||||||||||||||||||||||
Impairment losses | (3.4) | (1.7) | unfav | (8.3) | (3.3) | unfav | |||||||||||||||||||||||||||||
Share in earnings of equity affiliates | 0.4 | 0.2 | 100 | 0.6 | 0.7 | (14) | |||||||||||||||||||||||||||||
Royalty income | 1.2 | 1.4 | (14) | 3.5 | 3.9 | (10) | |||||||||||||||||||||||||||||
Other gains (losses) | 1.2 | 0.7 | 71 | 2.2 | 0.3 | fav | |||||||||||||||||||||||||||||
Other operating income (expense) | $ | (9.8) | (6.5) | 51 | $ | (18.4) | (7.0) | unfav |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||||||||||||||||||||
Interest expense | $ | 27.1 | 22.9 | 18 | $ | 70.3 | 68.6 | 2 |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||||||||||||||||||||
Interest income | $ | 2.3 | 2.0 | 15 | $ | 5.0 | 4.3 | 16 | |||||||||||||||||||||||||||
Gain (loss) on equity securities | (1.1) | — | unfav | 2.3 | — | fav | |||||||||||||||||||||||||||||
Foreign currency transaction gains (losses) | — | — | — | (0.1) | — | unfav | |||||||||||||||||||||||||||||
Derivative instrument losses(a) | (0.5) | — | unfav | (8.6) | — | unfav | |||||||||||||||||||||||||||||
Retirement benefit cost other than service cost | (10.3) | (7.9) | 30 | (28.6) | (25.4) | 13 | |||||||||||||||||||||||||||||
Non-income taxes on intercompany billings(b) | (1.9) | (0.1) | unfav | (3.5) | (1.9) | 84 | |||||||||||||||||||||||||||||
Venezuela operations(c) | — | — | — | — | (0.9) | (100) | |||||||||||||||||||||||||||||
Gain on lease termination(d) | — | — | — | — | 5.2 | (100) | |||||||||||||||||||||||||||||
Gain on disposition of subsidiary(e) | — | — | — | 4.7 | — | fav | |||||||||||||||||||||||||||||
Other | (1.3) | (1.8) | (28) | (2.6) | (3.4) | (24) | |||||||||||||||||||||||||||||
Interest and other nonoperating income (expense) | $ | (12.8) | (7.8) | 64 | $ | (31.4) | (22.1) | 42 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Continuing operations | |||||||||||||||||||||||
Provision for income taxes (in millions) | $ | 58.9 | 14.7 | $ | 3.5 | 37.1 | |||||||||||||||||
Effective tax rate | 161.4 | % | 67.4 | % | (3,500.0 | %) | 51.0 | % |
Three Months Ended September 30, | % | Nine Months Ended September 30, | % | ||||||||||||||||||||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | $ | 1.4 | 1.3 | 8 | $ | 4.7 | 3.6 | 31 |
YTD '20 | YTD '19 | ||||||||||||||||||||||||||||||||||
(In millions, except for percentages) | Pre-tax | Tax | Effective tax rate | Pre-tax | Tax | Effective tax rate | |||||||||||||||||||||||||||||
Effective Income Tax Rate(a) | |||||||||||||||||||||||||||||||||||
GAAP | $ | (0.1) | 3.5 | (3,500.0) | % | $ | 72.8 | 37.1 | 51.0 | % | |||||||||||||||||||||||||
Retirement plans(d) | 24.5 | 5.8 | 21.5 | 5.1 | |||||||||||||||||||||||||||||||
Venezuela operations(e) | — | — | 0.9 | — | |||||||||||||||||||||||||||||||
Reorganization and Restructuring(b) | 50.2 | 11.6 | 20.5 | 5.6 | |||||||||||||||||||||||||||||||
Acquisitions and dispositions(b) | 71.6 | 9.7 | 68.5 | 3.7 | |||||||||||||||||||||||||||||||
Argentina highly inflationary impact(b) | 8.4 | (0.7) | 12.3 | (1.4) | |||||||||||||||||||||||||||||||
Internal loss(b) | 9.9 | 2.3 | 13.9 | 2.5 | |||||||||||||||||||||||||||||||
Reporting compliance(b) | 0.4 | — | 2.0 | — | |||||||||||||||||||||||||||||||
Gain on lease termination(f) | — | — | (5.2) | (1.2) | |||||||||||||||||||||||||||||||
Income tax rate adjustment(c) | — | 24.1 | — | 13.7 | |||||||||||||||||||||||||||||||
Non-GAAP | $ | 164.9 | 56.3 | 34.1 | % | $ | 207.2 | 65.1 | 31.4 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In millions, except for percentages and per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Revenues: | |||||||||||||||||||||||
GAAP | $ | 970.5 | 928.4 | $ | 2,669.3 | 2,747.4 | |||||||||||||||||
Acquisitions and dispositions(b) | — | 0.2 | — | 0.5 | |||||||||||||||||||
Internal loss(b) | — | (4.0) | — | (4.0) | |||||||||||||||||||
Non-GAAP | $ | 970.5 | 924.6 | $ | 2,669.3 | 2,743.9 | |||||||||||||||||
Operating profit: | |||||||||||||||||||||||
GAAP | $ | 76.4 | 52.5 | $ | 101.6 | 163.5 | |||||||||||||||||
Reorganization and Restructuring(b) | 5.1 | 6.4 | 49.7 | 20.5 | |||||||||||||||||||
Acquisitions and dispositions(b) | 16.2 | 24.0 | 66.2 | 63.8 | |||||||||||||||||||
Argentina highly inflationary impact(b) | 3.2 | 7.9 | 8.4 | 12.3 | |||||||||||||||||||
Internal loss(b) | (0.9) | 11.3 | 9.9 | 13.9 | |||||||||||||||||||
Reporting compliance(b) | (0.1) | 0.3 | 0.4 | 2.0 | |||||||||||||||||||
Non-GAAP | $ | 99.9 | 102.4 | $ | 236.2 | 276.0 | |||||||||||||||||
Operating margin: | |||||||||||||||||||||||
GAAP margin | 7.9 | % | 5.7 | % | 3.8 | % | 6.0 | % | |||||||||||||||
Non-GAAP margin | 10.3 | % | 11.1 | % | 8.8 | % | 10.1 | % | |||||||||||||||
Interest expense: | |||||||||||||||||||||||
GAAP | $ | (27.1) | (22.9) | $ | (70.3) | (68.6) | |||||||||||||||||
Acquisitions and dispositions(b) | 0.5 | 1.5 | 1.5 | 4.5 | |||||||||||||||||||
Non-GAAP | $ | (26.6) | (21.4) | $ | (68.8) | (64.1) | |||||||||||||||||
Interest and other nonoperating income (expense): | |||||||||||||||||||||||
GAAP | $ | (12.8) | (7.8) | $ | (31.4) | (22.1) | |||||||||||||||||
Retirement plans(d) | 8.7 | 6.6 | 24.5 | 21.5 | |||||||||||||||||||
Venezuela operations(e) | — | — | — | 0.9 | |||||||||||||||||||
Reorganization and Restructuring(b) | 0.5 | — | 0.5 | — | |||||||||||||||||||
Acquisitions and dispositions(b) | 0.4 | 0.2 | 3.9 | 0.2 | |||||||||||||||||||
Gain on lease termination(f) | — | — | — | (5.2) | |||||||||||||||||||
Non-GAAP | $ | (3.2) | (1.0) | $ | (2.5) | (4.7) | |||||||||||||||||
Provision for income taxes: | |||||||||||||||||||||||
GAAP | $ | 58.9 | 14.7 | $ | 3.5 | 37.1 | |||||||||||||||||
Retirement plans(d) | 2.1 | 1.6 | 5.8 | 5.1 | |||||||||||||||||||
Reorganization and Restructuring(b) | 1.3 | 2.0 | 11.6 | 5.6 | |||||||||||||||||||
Acquisitions and dispositions(b) | 4.0 | 0.9 | 9.7 | 3.7 | |||||||||||||||||||
Argentina highly inflationary impact(b) | (0.2) | (1.4) | (0.7) | (1.4) | |||||||||||||||||||
Internal loss(b) | (0.2) | 2.4 | 2.3 | 2.5 | |||||||||||||||||||
Gain on lease termination(f) | — | (1.2) | — | (1.2) | |||||||||||||||||||
Income tax rate adjustment(c) | (42.0) | 6.1 | 24.1 | 13.7 | |||||||||||||||||||
Non-GAAP | $ | 23.9 | 25.1 | $ | 56.3 | 65.1 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In millions, except for percentages and per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests: | |||||||||||||||||||||||
GAAP | $ | 1.4 | 1.3 | $ | 4.7 | 3.6 | |||||||||||||||||
Reorganization and Restructuring(b) | 0.2 | — | 0.3 | — | |||||||||||||||||||
Acquisitions and dispositions(b) | 0.2 | — | 0.3 | — | |||||||||||||||||||
Income tax rate adjustment(c) | 1.0 | — | (1.0) | — | |||||||||||||||||||
Non-GAAP | $ | 2.8 | 1.3 | $ | 4.3 | 3.6 | |||||||||||||||||
Income (loss) from continuing operations attributable to Brink's: | |||||||||||||||||||||||
GAAP | $ | (23.8) | 5.8 | $ | (8.3) | 32.1 | |||||||||||||||||
Retirement plans(d) | 6.6 | 5.0 | 18.7 | 16.4 | |||||||||||||||||||
Venezuela operations(e) | — | — | — | 0.9 | |||||||||||||||||||
Reorganization and Restructuring(b) | 4.1 | 4.4 | 38.3 | 14.9 | |||||||||||||||||||
Acquisitions and dispositions(b) | 12.9 | 24.8 | 61.6 | 64.8 | |||||||||||||||||||
Argentina highly inflationary impact(b) | 3.4 | 9.3 | 9.1 | 13.7 | |||||||||||||||||||
Internal loss(b) | (0.7) | 8.9 | 7.6 | 11.4 | |||||||||||||||||||
Reporting compliance(b) | (0.1) | 0.3 | 0.4 | 2.0 | |||||||||||||||||||
Gain on lease termination(f) | — | 1.2 | — | (4.0) | |||||||||||||||||||
Income tax rate adjustment(c) | 41.0 | (6.1) | (23.1) | (13.7) | |||||||||||||||||||
Non-GAAP | $ | 43.4 | 53.6 | $ | 104.3 | 138.5 | |||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||
GAAP | $ | (0.47) | 0.11 | $ | (0.17) | 0.63 | |||||||||||||||||
Retirement plans(d) | 0.13 | 0.10 | 0.37 | 0.32 | |||||||||||||||||||
Venezuela operations(e) | — | — | — | 0.02 | |||||||||||||||||||
Reorganization and Restructuring(b) | 0.08 | 0.09 | 0.75 | 0.29 | |||||||||||||||||||
Acquisitions and dispositions(b) | 0.26 | 0.49 | 1.21 | 1.27 | |||||||||||||||||||
Argentina highly inflationary impact(b) | 0.07 | 0.18 | 0.18 | 0.27 | |||||||||||||||||||
Internal loss(b) | (0.01) | 0.17 | 0.15 | 0.22 | |||||||||||||||||||
Reporting compliance(b) | — | 0.01 | 0.01 | 0.04 | |||||||||||||||||||
Gain on lease termination(f) | — | 0.02 | — | (0.08) | |||||||||||||||||||
Income tax rate adjustment(c) | 0.81 | (0.12) | (0.45) | (0.27) | |||||||||||||||||||
Share adjustment(g) | — | — | — | — | |||||||||||||||||||
Non-GAAP | $ | 0.86 | 1.05 | $ | 2.05 | 2.72 |
Nine Months Ended September 30, | $ | ||||||||||||||||
(In millions) | 2020 | 2019 | change | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Operating activities - GAAP | $ | 87.4 | 151.8 | (64.4) | |||||||||||||
(Increase) decrease in restricted cash held for customers | (37.3) | 41.8 | (79.1) | ||||||||||||||
(Increase) decrease in certain customer obligations(a) | 0.7 | (15.4) | 16.1 | ||||||||||||||
Operating activities - non-GAAP | $ | 50.8 | 178.2 | (127.4) |
Nine Months Ended September 30, | $ | ||||||||||||||||
(In millions) | 2020 | 2019 | change | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||
Capital expenditures | $ | (79.1) | (116.0) | 36.9 | |||||||||||||
Acquisitions, net of cash acquired | (427.1) | (183.9) | (243.2) | ||||||||||||||
Dispositions, net of cash disposed | (3.1) | — | (3.1) | ||||||||||||||
Marketable securities: | |||||||||||||||||
Purchases | (1.5) | (2.6) | 1.1 | ||||||||||||||
Sales | 1.7 | 1.1 | 0.6 | ||||||||||||||
Proceeds from sale of property and equipment | 2.3 | 3.0 | (0.7) | ||||||||||||||
Acquisition of customer contracts | (6.7) | (3.1) | (3.6) | ||||||||||||||
Investing activities | $ | (513.5) | (301.5) | (212.0) |
Nine Months Ended September 30, | $ | Full Year | |||||||||||||||||||||
(In millions) | 2020 | 2019 | change | 2019 | |||||||||||||||||||
Property and equipment acquired during the period | |||||||||||||||||||||||
Capital expenditures:(a) | |||||||||||||||||||||||
North America | $ | 28.5 | 52.2 | (23.7) | 76.6 | ||||||||||||||||||
South America | 15.0 | 32.0 | (17.0) | 44.4 | |||||||||||||||||||
Rest of World | 31.3 | 23.8 | 7.5 | 33.5 | |||||||||||||||||||
Corporate | 4.3 | 8.0 | (3.7) | 10.3 | |||||||||||||||||||
Capital expenditures - GAAP and non-GAAP | $ | 79.1 | 116.0 | (36.9) | 164.8 | ||||||||||||||||||
Financing leases:(b) | |||||||||||||||||||||||
North America | $ | 23.0 | 39.3 | (16.3) | 51.8 | ||||||||||||||||||
South America | 0.8 | 3.0 | (2.2) | 3.7 | |||||||||||||||||||
Rest of World | 0.5 | 3.9 | (3.4) | 4.2 | |||||||||||||||||||
Financing leases - GAAP and non-GAAP | $ | 24.3 | 46.2 | (21.9) | 59.7 | ||||||||||||||||||
Total: | |||||||||||||||||||||||
North America | $ | 51.5 | 91.5 | (40.0) | 128.4 | ||||||||||||||||||
South America | 15.8 | 35.0 | (19.2) | 48.1 | |||||||||||||||||||
Rest of World | 31.8 | 27.7 | 4.1 | 37.7 | |||||||||||||||||||
Corporate | 4.3 | 8.0 | (3.7) | 10.3 | |||||||||||||||||||
Total property and equipment acquired | $ | 103.4 | 162.2 | (58.8) | 224.5 | ||||||||||||||||||
Depreciation and amortization(a) | |||||||||||||||||||||||
North America | $ | 60.4 | 60.7 | (0.3) | 81.1 | ||||||||||||||||||
South America | 19.3 | 21.0 | (1.7) | 27.9 | |||||||||||||||||||
Rest of World | 36.7 | 24.9 | 11.8 | 32.3 | |||||||||||||||||||
Corporate | 6.8 | 8.2 | (1.4) | 10.8 | |||||||||||||||||||
Depreciation and amortization - non-GAAP | $ | 123.2 | 114.8 | 8.4 | 152.1 | ||||||||||||||||||
Argentina highly inflationary impact | 2.2 | 0.8 | 1.4 | 1.8 | |||||||||||||||||||
Reorganization and Restructuring | 0.9 | 0.1 | 0.8 | 0.2 | |||||||||||||||||||
Acquisitions and dispositions | 0.7 | 3.1 | (2.4) | 3.1 | |||||||||||||||||||
Amortization of intangible assets | 25.2 | 20.7 | 4.5 | 27.8 | |||||||||||||||||||
Depreciation and amortization - GAAP | $ | 152.2 | 139.5 | 12.7 | 185.0 |
Nine Months Ended September 30, | $ | ||||||||||||||||
(In millions) | 2020 | 2019 | change | ||||||||||||||
Cash flows from financing activities | |||||||||||||||||
Borrowings and repayments: | |||||||||||||||||
Short-term borrowings | $ | (3.3) | (13.1) | 9.8 | |||||||||||||
Cash supply chain customer debt | (10.5) | — | (10.5) | ||||||||||||||
Long-term revolving credit facilities, net | (51.3) | (122.2) | 70.9 | ||||||||||||||
Other long-term debt, net | 924.4 | 291.2 | 633.2 | ||||||||||||||
Borrowings (repayments) | 859.3 | 155.9 | 703.4 | ||||||||||||||
Debt financing costs | (13.1) | (4.0) | (9.1) | ||||||||||||||
Repurchase shares of Brink's common stock | (50.0) | — | (50.0) | ||||||||||||||
Dividends to: | |||||||||||||||||
Shareholders of Brink’s | (22.7) | (22.4) | (0.3) | ||||||||||||||
Noncontrolling interests in subsidiaries | (8.9) | (1.4) | (7.5) | ||||||||||||||
Payment of acquisition-related obligation | (6.8) | (4.1) | (2.7) | ||||||||||||||
Tax withholdings associated with share-based compensation | (10.3) | (8.4) | (1.9) | ||||||||||||||
Other | 1.7 | (2.9) | 4.6 | ||||||||||||||
Financing activities | $ | 749.2 | 112.7 | 636.5 |
September 30, | December 31, | ||||||||||
(In millions) | 2020 | 2019 | |||||||||
Debt: | |||||||||||
Short-term borrowings | $ | 13.3 | 14.3 | ||||||||
Long-term debt | 2,514.3 | 1,629.3 | |||||||||
Total Debt | 2,527.6 | 1,643.6 | |||||||||
Restricted cash borrowings(a) | — | (10.3) | |||||||||
Total Debt without restricted cash borrowings | 2,527.6 | 1,633.3 | |||||||||
Less: | |||||||||||
Cash and cash equivalents | 592.4 | 311.0 | |||||||||
Amounts held by Cash Management Services operations(b) | (22.7) | (26.3) | |||||||||
Cash and cash equivalents available for general corporate purposes | 569.7 | 284.7 | |||||||||
Net Debt(c) | $ | 1,957.9 | 1,348.6 |
Funded Status of U.S. Retirement Plans | |||||||||||||||||||||||||||||||||||||||||
Actual | Actual | Projected | |||||||||||||||||||||||||||||||||||||||
(In millions) | 2019 | Nine Months 2020 | 4th Quarter 2020 | 2021 | 2022 | 2023 | 2024 | ||||||||||||||||||||||||||||||||||
Primary U.S. pension plan | |||||||||||||||||||||||||||||||||||||||||
Beginning funded status | $ | (106.8) | (118.3) | (103.4) | (97.4) | (75.6) | (38.6) | 4.0 | |||||||||||||||||||||||||||||||||
Net periodic pension credit(a) | 16.9 | 14.9 | 4.9 | 21.0 | 22.4 | 24.0 | 27.1 | ||||||||||||||||||||||||||||||||||
Payment from Brink’s | — | — | — | — | 14.1 | 17.6 | 16.3 | ||||||||||||||||||||||||||||||||||
Benefit plan experience gain (loss) | (28.4) | — | 1.1 | 0.8 | 0.5 | 1.0 | — | ||||||||||||||||||||||||||||||||||
Ending funded status | $ | (118.3) | (103.4) | (97.4) | (75.6) | (38.6) | 4.0 | 47.4 | |||||||||||||||||||||||||||||||||
UMWA plans | |||||||||||||||||||||||||||||||||||||||||
Beginning funded status | $ | (297.4) | (246.7) | (237.5) | (237.3) | (238.2) | (240.0) | (242.8) | |||||||||||||||||||||||||||||||||
Net periodic postretirement cost(a) | (4.0) | 0.2 | 0.2 | (0.9) | (1.8) | (2.8) | (3.9) | ||||||||||||||||||||||||||||||||||
Benefit plan experience gain (loss) | 55.1 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other(b) | (0.4) | 9.0 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Ending funded status | $ | (246.7) | (237.5) | (237.3) | (238.2) | (240.0) | (242.8) | (246.7) | |||||||||||||||||||||||||||||||||
Black lung plans | |||||||||||||||||||||||||||||||||||||||||
Beginning funded status | $ | (67.9) | (99.2) | (95.8) | (91.5) | (84.0) | (77.1) | (70.6) | |||||||||||||||||||||||||||||||||
Net periodic postretirement cost(a) | (3.0) | (2.3) | (0.8) | (2.6) | (2.5) | (2.2) | (2.1) | ||||||||||||||||||||||||||||||||||
Payment from Brink’s | 8.4 | 5.7 | 5.1 | 10.1 | 9.4 | 8.7 | 8.1 | ||||||||||||||||||||||||||||||||||
Benefit plan experience gain (loss) | (36.7) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Ending funded status | $ | (99.2) | (95.8) | (91.5) | (84.0) | (77.1) | (70.6) | (64.6) |
Actual | Actual | Projected | |||||||||||||||||||||||||||||||||||||||||||||
(In millions) | 2019 | Nine Months 2020 | 4th Quarter 2020 | FY2020 | 2021 | 2022 | 2023 | 2024 | |||||||||||||||||||||||||||||||||||||||
Primary U.S. pension plan | $ | 21.8 | 6.4 | 2.3 | 8.7 | 3.1 | (1.3) | (4.4) | (11.3) | ||||||||||||||||||||||||||||||||||||||
UMWA plans | 15.9 | 8.6 | 2.9 | 11.5 | 11.4 | 11.6 | 11.9 | 12.3 | |||||||||||||||||||||||||||||||||||||||
Black lung plans | 7.4 | 8.3 | 2.8 | 11.1 | 9.8 | 9.1 | 8.5 | 7.9 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 45.1 | 23.3 | 8.0 | 31.3 | 24.3 | 19.4 | 16.0 | 8.9 |
Actual | Actual | Projected | |||||||||||||||||||||||||||||||||||||||||||||
(In millions) | 2019 | Nine Months 2020 | 4th Quarter 2020 | FY2020 | 2021 | 2022 | 2023 | 2024 | |||||||||||||||||||||||||||||||||||||||
Payments from Brink’s to U.S. Plans | |||||||||||||||||||||||||||||||||||||||||||||||
Primary U.S. pension plan | $ | — | — | — | — | — | 14.1 | 17.6 | 16.3 | ||||||||||||||||||||||||||||||||||||||
Black lung plans | 8.4 | 5.7 | 5.1 | 10.8 | 10.1 | 9.4 | 8.7 | 8.1 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 8.4 | 5.7 | 5.1 | 10.8 | 10.1 | 23.5 | 26.3 | 24.4 | ||||||||||||||||||||||||||||||||||||||
Payments from U.S. Plans to participants | |||||||||||||||||||||||||||||||||||||||||||||||
Primary U.S. pension plan | $ | 48.5 | 32.3 | 14.7 | 47.0 | 47.0 | 47.0 | 47.0 | 46.9 | ||||||||||||||||||||||||||||||||||||||
UMWA plans | 29.3 | 19.4 | 10.8 | 30.2 | 30.2 | 29.7 | 29.3 | 28.7 | |||||||||||||||||||||||||||||||||||||||
Black lung plans | 8.4 | 5.7 | 5.1 | 10.8 | 10.1 | 9.4 | 8.7 | 8.1 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 86.2 | 57.4 | 30.6 | 88.0 | 87.3 | 86.1 | 85.0 | 83.7 |
Period | (a) Total Number of Shares Purchased(1) | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||||||||||||||||
July 1 through | ||||||||||||||||||||||||||
July 31, 2020 | — | $ | — | — | $ | — | ||||||||||||||||||||
August 1 through | ||||||||||||||||||||||||||
August 31, 2020 | 849,978 | 58.83 | 849,978 | 200,000,000 | ||||||||||||||||||||||
September 1 through | ||||||||||||||||||||||||||
September 30, 2020 | 246,676 | (2) | 246,676 | 200,000,000 |
10.1 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended September 30, 2020, furnished in Inline eXtensible Business Reporting Language (iXBRL)). The instance document does not appear in the interactive data file because its iXBRL tags are embedded within the iXBRL document. Attached as Exhibit 101 to this report are the following documents formatted in iXBRL: (i) the Condensed Consolidated Balance Sheets at September 30, 2020, and December 31, 2019, (ii) the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2020 and 2019, (iv) the Condensed Consolidated Statements of Equity for the nine months ended September 30, 2020 and 2019, (v) the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 and (vi) the Notes to the Condensed Consolidated Financial Statements. Users of this data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, and otherwise is not subject to liability under these sections. |
THE BRINK’S COMPANY | |||||
October 29, 2020 | By: /s/ Ronald J. Domanico | ||||
Ronald J. Domanico | |||||
(Executive Vice President and | |||||
Chief Financial Officer) | |||||
(principal financial officer) |
Page | |||||
ARTICLE 1 Definitions | |||||
Section 1.01. Definitions | |||||
ARTICLE 2 Available shares; Administration; Accounts; Other Deferrals | |||||
Section 2.01. Available Shares | |||||
Section 2.02. Administration | |||||
Section 2.03. Accounts | |||||
Section 2.04. Deferral of Other Amounts | |||||
ARTICLE 3 Deferral of Cash Incentive Payments | |||||
Section 3.01. Definitions | |||||
Section 3.02. Eligibility | |||||
Section 3.03. Deferral of Cash Incentive Payments | |||||
Section 3.04. Matching Incentive Contributions | |||||
Section 3.05. Deferral of Stock Unit Awards | 7 | ||||
Section 3.06. Crediting of Cash and Stock Incentive Accounts | |||||
Section 3.07. Adjustments | |||||
Section 3.08. Dividends and Distributions | |||||
Section 3.09. Minimum Distribution | |||||
ARTICLE 4 Deferral of Salary | |||||
Section 4.01. Definitions | |||||
Section 4.02. Eligibility | |||||
Section 4.03. Deferral of Salary | |||||
Section 4.04. Matching Salary Contributions | |||||
Section 4.05. Crediting of Cash and Stock Incentive Accounts | |||||
Section 4.06. Adjustments |
Section 4.07. Dividends and Distributions | |||||
Section 4.08. Minimum Distribution | |||||
ARTICLE 5 Supplemental Savings Plan | |||||
Section 5.01. Definitions | |||||
Section 5.02. Eligibility | |||||
Section 5.03. Deferral of Compensation | |||||
Section 5.04. Matching Supplemental Savings Plan Contributions | |||||
Section 5.05. Crediting of Cash and Stock Incentive Accounts | |||||
Section 5.06. Adjustments | |||||
Section 5.07. Dividends and Distributions | |||||
ARTICLE 6 Deferral of Performance Awards | |||||
Section 6.01. Definitions | |||||
Section 6.02. Deferrals of Cash Performance Payments | |||||
Section 6.03. Adjustments | |||||
Section 6.04. Dividends and Distributions | |||||
Section 6.05. Minimum Distribution | |||||
ARTICLE 7 Reallocations; Unconverted Amounts | |||||
Section 7.01. Reallocations Between Cash Incentive Accounts and Stock Incentive Accounts | |||||
Section 7.02. Reallocations Among Investment Options | |||||
Section 7.03. Unconverted Amounts Upon Termination of Employment | |||||
Section 7.04. Removal of Investment Option | |||||
ARTICLE 8 Distributions; Changes to and Cancelations of Deferral Elections | |||||
Section 8.01. In Service Distributions | |||||
Section 8.02. Certain Distributions on Death or Disability | |||||
Section 8.03. Certain Distributions on Termination of Employment | |||||
Section 8.04. Distributions Attributable to Matching Incentive Contributions and Matching Salary Contributions on Termination of Employment | |||||
Section 8.05. Distribution Following a Change in Control | |||||
Section 8.06. Unforeseeable Emergencies |
Section 8.07. Changes to and Cancelations of Deferral Elections | |||||
Section 8.08. Termination of Employment by the Company for Cause | |||||
Section 8.09. Installment Payments | |||||
Section 8.10. Distribution Timing……………………………… | 22 | ||||
ARTICLE 9 Designation of Beneficiary | |||||
ARTICLE 10 Miscellaneous | |||||
Section 10.01. Nontransferability of Benefits | |||||
Section 10.02. Notices | |||||
Section 10.03. Limitation on Rights of Employee | |||||
Section 10.04. No Contract of Employment | |||||
Section 10.05. Withholding | |||||
Section 10.06. Amendment and Termination | |||||
Months Since Initial Program Participation | Vested Percentage | ||||
less than 36 | 0 | ||||
at least 36 but less than 48 | 50% | ||||
at least 48 but less than 60 | 75% | ||||
60 or more | 100% |
/s/ Douglas A. Pertz | ||||||||
Douglas A. Pertz | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
/s/ Ronald J. Domanico | ||||||||
Ronald J. Domanico | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial Officer) |
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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Par value (in dollars per share) | $ 1 | $ 1 |
Shares authorized (in shares) | 100,000,000 | 100,000,000.0 |
Shares issued (in shares) | 49,400,000 | 50,100,000 |
Shares outstanding (in shares) | 49,400,000 | 50,100,000 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (22.5) | $ 6.7 | $ (4.5) | $ 35.2 |
Benefit plan adjustments: | ||||
Benefit plan actuarial gains | 12.4 | 9.2 | 44.2 | 29.5 |
Benefit plan prior service costs | (1.3) | (1.2) | (3.7) | (3.7) |
Deferred profit sharing | 0.0 | (0.1) | 0.0 | (0.2) |
Total benefit plan adjustments | 11.1 | 8.1 | 40.5 | 26.0 |
Foreign currency translation adjustments | 43.6 | (34.9) | (48.5) | (25.2) |
Gains (losses) on cash flow hedges | 4.1 | (3.9) | (13.2) | (22.4) |
Other comprehensive income (loss) before tax | 58.8 | (30.7) | (21.2) | (21.6) |
Provision for income taxes | 4.1 | 0.7 | 6.3 | 0.5 |
Other comprehensive income (loss) | 54.7 | (31.4) | (27.5) | (22.1) |
Comprehensive income (loss) | 32.2 | (24.7) | (32.0) | 13.1 |
Less comprehensive income attributable to noncontrolling interests | 3.4 | 1.6 | 7.3 | 4.3 |
Comprehensive income (loss) attributable to Brink's | $ 28.8 | $ (26.3) | $ (39.3) | $ 8.8 |
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, 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 | |||||
Shares repurchased | 0.0 | (0.5) | 0.5 | |||||
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) | $ 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) | 14.0 | ||
Ending balance, Shares at Mar. 31, 2019 | 49.9 | |||||||
Stock options and awards | ||||||||
Dividends (dollars per share) | $ 0.15 | |||||||
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 | $ 50.0 | 656.6 | 467.5 | (1,004.9) | 16.0 | ||
Ending balance, Shares at Sep. 30, 2019 | 50.0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of change in accounting principle | [1] | 0.0 | 28.8 | (28.8) | ||||
Beginning balance at Mar. 31, 2019 | 179.3 | $ 49.9 | 630.9 | 464.7 | (980.2) | 14.0 | ||
Beginning balance, Shares at Mar. 31, 2019 | 49.9 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 14.0 | 12.5 | 1.5 | |||||
Other comprehensive income | 7.1 | 7.0 | 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 | $ 50.0 | 647.7 | 469.7 | (973.2) | 15.5 | ||
Ending balance, Shares at Jun. 30, 2019 | 50.0 | |||||||
Stock options and awards | ||||||||
Dividends (dollars per share) | $ 0.15 | |||||||
Net income | $ 6.7 | 5.4 | 1.3 | |||||
Other comprehensive income | (31.4) | (31.7) | 0.3 | |||||
Brink’s common shareholders | (7.5) | (7.5) | ||||||
Noncontrolling interests | (1.2) | (1.2) | ||||||
Compensation expense | 9.8 | 9.8 | ||||||
Other share-based benefit transactions | (1.0) | (0.9) | (0.1) | |||||
Capital contributions from noncontrolling interest | 0.1 | 0.1 | ||||||
Ending balance at Sep. 30, 2019 | $ 185.2 | $ 50.0 | 656.6 | 467.5 | (1,004.9) | 16.0 | ||
Ending balance, Shares at Sep. 30, 2019 | 50.0 | |||||||
Stock options and awards | ||||||||
Dividends (dollars per share) | $ 0.15 | |||||||
Beginning balance at Dec. 31, 2019 | $ 207.6 | $ 50.1 | 663.3 | 457.4 | (979.0) | 15.8 | ||
Beginning balance, Shares at Dec. 31, 2019 | 50.1 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 2.8 | 1.8 | 1.0 | |||||
Other comprehensive income | (117.4) | (117.0) | (0.4) | |||||
Dividends to: | ||||||||
Brink’s common shareholders | (7.5) | (7.5) | ||||||
Noncontrolling interests | (0.7) | (0.7) | ||||||
Stock options and awards | ||||||||
Compensation expense | 7.2 | 7.2 | ||||||
Other share-based benefit transactions | (8.3) | $ 0.4 | (8.6) | (0.1) | ||||
Other share-based benefit transactions, shares | 0.4 | |||||||
Ending balance at Mar. 31, 2020 | $ 82.0 | $ 50.5 | 661.9 | 449.9 | (1,096.0) | 15.7 | ||
Ending balance, Shares at Mar. 31, 2020 | 50.5 | |||||||
Stock options and awards | ||||||||
Dividends (dollars per share) | $ 0.15 | |||||||
Beginning balance at Dec. 31, 2019 | $ 207.6 | $ 50.1 | 663.3 | 457.4 | (979.0) | 15.8 | ||
Beginning balance, Shares at Dec. 31, 2019 | 50.1 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | (4.5) | |||||||
Other comprehensive income | (27.5) | (30.1) | ||||||
Ending balance at Sep. 30, 2020 | 171.9 | $ 49.4 | 660.0 | 389.7 | (1,009.1) | 81.9 | ||
Ending balance, Shares at Sep. 30, 2020 | 49.4 | |||||||
Beginning balance at Mar. 31, 2020 | 82.0 | $ 50.5 | 661.9 | 449.9 | (1,096.0) | 15.7 | ||
Beginning balance, Shares at Mar. 31, 2020 | 50.5 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 15.2 | 12.9 | 2.3 | |||||
Other comprehensive income | 35.2 | 34.2 | 1.0 | |||||
Dividends to: | ||||||||
Brink’s common shareholders | (7.6) | (7.6) | ||||||
Noncontrolling interests | (7.2) | (7.2) | ||||||
Stock options and awards | ||||||||
Compensation expense | 5.4 | 5.4 | ||||||
Other share-based benefit transactions | 0.1 | $ 0.0 | 0.1 | |||||
Other share-based benefit transactions, shares | 0.0 | |||||||
Acquisitions with noncontrolling interests | (67.8) | (67.8) | ||||||
Ending balance at Jun. 30, 2020 | $ 190.9 | $ 50.5 | 667.4 | 455.2 | (1,061.8) | 79.6 | ||
Ending balance, Shares at Jun. 30, 2020 | 50.5 | |||||||
Stock options and awards | ||||||||
Dividends (dollars per share) | $ 0.15 | |||||||
Net income | $ (22.5) | (23.9) | 1.4 | |||||
Other comprehensive income | 54.7 | 52.7 | 2.0 | |||||
Shares repurchased | (50.0) | $ (1.1) | (14.9) | (34.0) | ||||
Shares repurchased, shares | (1.1) | |||||||
Brink’s common shareholders | (7.6) | (7.6) | ||||||
Noncontrolling interests | (1.0) | (1.0) | ||||||
Compensation expense | 8.3 | 8.3 | ||||||
Other share-based benefit transactions | (0.8) | (0.8) | ||||||
Acquisitions with noncontrolling interests | (0.1) | (0.1) | ||||||
Ending balance at Sep. 30, 2020 | $ 171.9 | $ 49.4 | $ 660.0 | $ 389.7 | $ (1,009.1) | $ 81.9 | ||
Ending balance, Shares at Sep. 30, 2020 | 49.4 | |||||||
Stock options and awards | ||||||||
Dividends (dollars per share) | $ 0.15 | |||||||
|
Condensed Consolidated Statement of Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
|
Dividends to: | ||||||
Dividends (dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 |
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Cash flows from operating activities: | ||
Net income (loss) | $ (4.5) | $ 35.2 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Loss from discontinued operations, net of tax | (0.9) | (0.5) |
Depreciation and amortization | 152.2 | 139.5 |
Share-based compensation expense | 20.9 | 35.9 |
Deferred income taxes | (6.2) | (3.6) |
Gains on sale of property, equipment and marketable securities | (2.9) | (2.0) |
Gains on business dispositions | 4.7 | 0.0 |
Impairment losses | 8.3 | 3.3 |
Retirement benefit funding less than expense: | ||
Pension | 7.3 | 2.6 |
Other than pension | 2.7 | 11.5 |
Remeasurement losses due to Argentina currency devaluations | 5.3 | 10.4 |
Other operating | 14.1 | 11.8 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable and income taxes receivable | (2.7) | (36.5) |
Accounts payable, income taxes payable and accrued liabilities | (134.2) | (15.4) |
Restricted cash held for customers | 37.3 | (41.8) |
Customer obligations | (0.7) | 15.4 |
Prepaid and other current assets | (20.0) | (0.8) |
Other | 14.3 | (14.2) |
Net cash provided by operating activities | 87.4 | 151.8 |
Cash flows from investing activities: | ||
Capital expenditures | (79.1) | (116.0) |
Acquisitions, net of cash acquired | (427.1) | (183.9) |
Dispositions, net of cash disposed | (3.1) | 0.0 |
Purchases | (1.5) | (2.6) |
Sales | 1.7 | 1.1 |
Cash proceeds from sale of property and equipment | 2.3 | 3.0 |
Acquisition of customer contracts | (6.7) | (3.1) |
Net cash used by investing activities | (513.5) | (301.5) |
Cash flows from financing activities: | ||
Short-term borrowings | (3.3) | (13.1) |
Cash supply chain customer debt | (10.5) | |
Borrowings | 815.4 | 714.3 |
Repayments | (866.7) | (836.5) |
Borrowings | 995.2 | 334.9 |
Repayments | (70.8) | (43.7) |
Payment of acquisition-related obligation | (6.8) | (4.1) |
Debt financing costs | 13.1 | 4.0 |
Repurchase shares of Brink's common stock | (50.0) | |
Dividends to: | ||
Shareholders of Brink’s | (22.7) | (22.4) |
Noncontrolling interests in subsidiaries | (8.9) | (1.4) |
Tax withholdings associated with share-based compensation | (10.3) | (8.4) |
Other | 1.7 | (2.9) |
Net cash provided by financing activities | 749.2 | 112.7 |
Effect of exchange rate changes on cash | 3.3 | (16.3) |
Cash, cash equivalents and restricted cash: | ||
Increase (decrease) | 326.4 | (53.3) |
Balance at beginning of period | 469.0 | 479.5 |
Balance at end of period | $ 795.4 | $ 426.2 |
Basis of presentation |
9 Months Ended |
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Sep. 30, 2020 | |
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, 2019. 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, deferred tax assets, purchase price allocations and foreign currency translation. While some of our locations noted improved economics in the third quarter, our current estimates could be materially adversely affected in future periods by the coronavirus (COVID-19) pandemic, which began to have an adverse impact on our results of operations in the quarter ended March 31, 2020 through a reduction in global commerce, reducing the demand for our services and lowering volumes. As a result, we have experienced reduced revenues as some of our customers canceled or suspended service. Consequently we have aligned our cost structure to the reduced demand for our services. We expect a negative impact on volumes, revenues and operating results while the COVID-19 pandemic continues. Because of the uncertainty with respect to the impact and duration of the COVID-19 pandemic, future developments associated with the COVID-19 pandemic could materially adversely affect our financial position, results of operations, cash flows or our long-term liquidity position. We will continue to monitor developments affecting our condensed consolidated financial statements, including indicators that goodwill or other long-lived assets may be impaired, increases in valuation allowances for doubtful accounts or deferred tax assets may be necessary or other accruals that may increase or be necessary resulting from actions taken to reduce our cost structure or conserve our liquidity. 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 5% of our consolidated revenues for the first nine months of 2020 and 6% of our consolidated revenues for the first nine months of 2019. 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 2020 and 2019, the Argentine peso declined approximately 22% (from 59.9 to 76.3 pesos to the U.S. dollar) and approximately 35% (from 37.6 to 57.5 pesos to the U.S. dollar), respectively. For the year ended December 31, 2019, the Argentine peso declined approximately 37% (from 37.6 to 59.9 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 first nine months of 2020, we recognized a $5.3 million pretax remeasurement loss. In the first nine months of 2019, we recognized a $10.4 million pretax remeasurement loss. At September 30, 2020, Argentina's economy remains highly inflationary for accounting purposes. At September 30, 2020, we had net monetary assets denominated in Argentine pesos of $19.6 million (including cash of $9.3 million). At September 30, 2020, we had net nonmonetary assets of $147.0 million (including $99.8 million of goodwill). At September 30, 2020, 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. During the third quarter of 2020, we elected to use other market mechanisms to convert Argentine pesos into U.S. dollars. Conversions under these other market mechanisms generally settle at rates that are less favorable than the rates at which we remeasure the financial statements of Brink’s Argentina. As a result, in the three months ended September 30, 2020, we recognized $10.4 million of such conversion losses when we converted Argentine pesos into U.S. dollars at rates that were approximately 100% less favorable than the rates at which we remeasured the financial statements of Brink’s Argentina. These conversion losses are classified in the condensed consolidated statements of operations as other operating income (expense). Although the Argentine government has implemented currency controls, 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 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. As a result of these conditions, we do not meet the accounting criteria for control over our Venezuelan operations and, as a result, we report the results of our investment in our Venezuelan subsidiaries using the cost method of accounting, the basis of which approximates zero. Prior to the imposition of the U.S. government sanctions in 2019, we provided immaterial amounts of financial support to our Venezuela operations. 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 2019, we incurred $4.5 million in costs (primarily third party expenses) to reconstruct the accounts receivables subledger. In the first nine months of 2020, we incurred an additional $0.3 million in costs related to this activity. 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 estimated an increase to bad debt expense of $13.7 million in the third quarter of 2019. The estimate of the allowance for doubtful accounts was adjusted in the fourth quarter of 2019 for an additional $6.4 million and again in the first nine months of 2020 for an additional $9.6 million. This estimate will be adjusted in future periods, if needed, as assumptions related to the collectability of these accounts receivable change. At September 30, 2020, we have recorded an $18.2 million allowance on $18.8 million of accounts receivable, or 97%. We have defined accounts receivable impacted by the embezzlement as accounts receivable recorded as of and prior to the third quarter of 2019. 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. Goodwill Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. We review goodwill for impairment annually, as of October 1, and whenever events or circumstances in interim periods indicate that it is more likely than not that an impairment may have occurred. Given the COVID-19 pandemic, impairment indicators were reviewed as of June 30, 2020 and we concluded that, due to decreases in our forecasted results, an impairment evaluation for all reporting units was necessary. We performed the interim impairment test as of April 30, 2020 and elected to forego the optional qualitative assessment and performed a quantitative goodwill impairment test instead. We estimated the fair value of each reporting unit using a weighting of three valuation methodologies: the Income Approach, the Public Company Market Multiple Method, and the Similar Transactions Method with greatest weight placed on the Income Approach. The resulting reporting unit fair values were compared to each reporting unit's carrying value. As a result of the evaluation, we concluded that the fair value of each reporting unit exceeded its carrying value for all reporting units, other than France, by a range of 21% to 199%. For the France reporting unit, although the fair value exceeded carrying value by only 8%, goodwill related to the France reporting unit was not impaired as of June 30, 2020. Given the COVID-19 pandemic, impairment indicators were reviewed as of September 30, 2020. We concluded that there were no events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We will continue to monitor results in future periods to determine whether any indicators of impairment exist that would cause us to perform an impairment review. Restricted Cash In France and Malaysia, we offer services to certain of our customers where we manage some or all of their cash supply chains. In connection with these offerings, we take temporary title to certain customers' cash, which is included as restricted cash in our financial statements due to customer agreement or regulation. In addition, in accordance with a revolving credit facility, we are required to maintain a restricted cash reserve of $5.0 million and, due to this contractual restriction, we have classified this amount as restricted cash. New Accounting Standards 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 amendments in this ASU eliminate some disclosures that are no longer considered cost beneficial, modify/clarify the specific requirements of certain disclosures and add disclosure requirements for Level 3 fair value measurements. We adopted ASU 2018-13 effective January 1, 2020 and the standard did not have a significant impact on our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the way entities recognize impairment of many financial assets. This new guidance requires immediate recognition of estimated credit losses expected to occur over the life of the asset and incorporates estimated, forward-looking data when measuring lifetime Expected Credit Losses (ECL). The standard was designed to provide greater transparency and understanding of credit risk by requiring enhanced financial statement disclosures which fall into three general categories: ECL estimate methodology and assumptions, quantitative information and metrics, and policy and process explanations. We adopted the standard using the modified retrospective transition method. Results for the reporting period beginning January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. We recognized a cumulative-effect adjustment decreasing retained earnings by $1.7 million on January 1, 2020. The adoption of the standard also resulted in expanded disclosures related to credit losses (see Note 10). In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod tax allocations and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 will be effective for us on January 1, 2021. We are currently evaluating the impact it will have on our financial statements.
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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
(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, 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 assets are included in prepaid expenses and other on the condensed consolidated balance sheet. 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, which is included in accrued liabilities on the condensed consolidated balance sheet. The opening and closing balances of receivables, contract assets and contract liabilities related to contracts with customers are as follows:
The amount of revenue recognized in the nine months ended September 30, 2020 that was included in the January 1, 2020 contract liability balance was $10.7 million. This revenue consists of services provided to customers who had prepaid for those services prior to the current year. We also recognized revenue of $1.3 million in the nine months ended September 30, 2020 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, 2020, net capitalized costs to obtain contracts was included in other assets on the condensed consolidated balance sheet. The capitalized amount at September 30, 2020 and amortization expense in the first nine months of 2020 were not significant. 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.
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Segment information |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. We also exclude certain costs, gains and losses related to acquisitions and dispositions of assets and of businesses. Brink's Argentina is consolidated 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 of the internal loss 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:
(a)This line item includes an adjustment to bad debt expense reported by the segments to the estimated consolidated amount required by U.S. GAAP. This line item also includes an adjustment to expense recognized by our Mexican subsidiaries for an annual profit sharing incentive based on local taxable income. U.S. GAAP requires that this plan should be accounted for similar to income tax expense on an interim reporting basis. (b)See details regarding the impact of the Internal Loss at Note 1. (c)Costs (primarily third party expenses) related to accounting standard implementation. Additional information provided at page 46.
(a)This line item includes an adjustment to bad debt expense reported by the segments to the estimated consolidated amount required by U.S. GAAP. This line item also includes an adjustment to expense recognized by our Mexican subsidiaries for an annual profit sharing incentive based on local taxable income. U.S. GAAP requires that this plan should be accounted for similar to income tax expense on an interim reporting basis. (b)See details regarding the impact of the Internal Loss at Note 1. (c)Costs (primarily third party expenses) related to accounting standard implementation. Additional information provided at page 46.
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Retirement benefits |
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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:
We did not make cash contributions to the primary U.S. pension plan in 2019 or the first nine months of 2020. Based on assumptions described in our Annual Report on Form 10-K for the year ended December 31, 2019, 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:
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.
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Income taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxes
2020 Compared to U.S. Statutory Rate The effective income tax rate on continuing operations in the first nine months of 2020 was negative and not meaningful primarily due to the level of pre-tax earnings. The items that cause the rate to be higher than the 21% U.S. statutory tax 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 U.S. taxable income limitations, 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. 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.
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Acquisitions and Dispositions |
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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. G4S plc ("G4S") Acquisitions On February 26, 2020, we announced that we agreed to acquire the majority of the cash management operations of U.K.-based G4S, with closings planned in multiple phases in 2020. In March 2020, we acquired 100% of the capital stock of G4S International Logistics Group Limited, a company which directly or indirectly owns controlling interests in multiple businesses providing secure international transportation of valuables. In the second quarter of 2020, we acquired cash management operations from G4S located in the Netherlands, Belgium, Ireland, Hong Kong, Cyprus, Romania, the Czech Republic, Malaysia, the Dominican Republic and the Philippines. In the third quarter of 2020, we acquired operations in Indonesia, Estonia, Latvia and Lithuania. For the majority of the acquisitions in the second and third quarters of 2020, we acquired 100% of the ownership interests. In Malaysia, the Dominican Republic, the Philippines and Indonesia, we acquired ownership interests of less than 100%. We believe that we meet the accounting criteria for consolidating these subsidiaries. In the aggregate, the purchase consideration for the G4S acquisitions in the first nine months of 2020 is $719.7 million. The operations we have acquired through September 30, 2020, which represent approximately 90% of the total estimated purchase price, generate approximately $740 million in annual revenues. The contingent consideration noted in the following table below is related to the acquisition of the Malaysia operations. The consideration will be paid when minimum dividend distributions are received by Brink's relating to cash on the balance sheets of the Malaysia subsidiaries as of the acquisition date. We used a probability-weighted approach to estimate the fair value of the contingent consideration. The fair value of the contingent consideration reflected in the table below is the full $38 million that remains potentially payable as of September 30, 2020 as we believe it is unlikely that the contingent consideration payments will be reduced. 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 in areas such as property and equipment, intangible assets, lease-related assets and liabilities, deferred taxes and goodwill. As a result, the allocation of the provisional purchase price may change in the future.
(a)Intangible assets are composed of customer relationships ($175 million fair value and 15 year amortization period). (b)Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating G4S operations with our existing operations. Goodwill has been provisionally assigned to the Global Markets-EMEA reporting unit ($255 million), the Global Markets-Asia reporting unit ($165 million) and the Global Markets-South America reporting unit ($4 million). We do not currently expect goodwill in these reporting units to be deductible for tax purposes. 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 expanded our operations in southeastern Brazil and is 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 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 fourth quarter of 2019. There were no significant changes to our fair value estimates of the net assets acquired of Rodoban.
(a)Intangible assets are composed of customer relationships ($47 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). (b)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. 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 $49 million. Together, these three acquired operations have approximately 1,300 employees. For these three business acquisitions (BI, COMEF and TVS), we 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. We finalized our purchase price accounting in the second quarter of 2020 for BI and COMEF and in the third quarter of 2020 for TVS. There were no significant changes to our fair value estimates of the net assets acquired for these acquisitions.
(a)Intangible assets are composed of developed technology, customer relationships and trade names. (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. Actual and Pro forma disclosures Below are the actual results included in Brink's consolidated results for the businesses we acquired in the first nine months of 2020.
The pro forma consolidated results of Brink’s presented below reflect a hypothetical ownership as of January 1, 2018 for the businesses we acquired during 2019 and a hypothetical ownership as of January 1, 2019 for the businesses we acquired in the first nine months of 2020.
(a)Represents amounts prior to acquisition by Brink's. Acquisition costs We have incurred $17.7 million in transaction costs related to business acquisitions in the first nine months of 2020 (compared to $5.6 million in the first nine months of 2019). These costs are classified in the condensed consolidated statements of operations as selling, general and administrative expenses. Dispositions On January 1, 2020, we sold 100% of our ownership interest in a French security services company for a net sales price of approximately $11 million. We recognized a $4.7 million gain on the sale of this business, which is reported in interest and other nonoperating income (expense) in the condensed consolidated statements of operations. The French security services company was part of the Rest of World reportable segment and reported revenues of $3 million in 2019.
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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:
(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):
(b)2020 foreign currency translation adjustment amounts arising during the current period reflect primarily the Mexican peso and Brazilian real, partially offset by the euro and various currencies related to the G4S acquisition. (c)Pretax gains and losses on cash flow hedges are classified in the condensed consolidated statements of operations as: •other operating income (expense) ($0.8 million gain in the three months ended September 30, 2020 and $8.9 million gain in the three months ended September 30, 2019; as well as $30.6 million gain in the nine months ended September 30, 2020 and $10.3 million gain in the nine months ended September 30, 2019) •interest expense ($2.9 million of expense in the three months ended September 30, 2020 and $1.4 million of expense in the three months ended September 30, 2019; as well as $6.8 million of expense in the nine months ended September 30, 2020 and $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:
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments | Fair value of financial instruments Investments in Marketable Securities We have investments in mutual funds and equity securities 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 material fixed-rate debt is as follows:
The fair value estimates 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, 2020, the notional value of our short term outstanding foreign currency forward and swap contracts was $282 million, with average maturities of approximately one month. These foreign currency forward and swap contracts primarily offset exposures in the euro and the British pound and are not designated as hedges for accounting purposes. Accordingly, changes in their fair value are recorded immediately in earnings. At September 30, 2020, the fair value of our short term foreign currency contracts was a net liability of approximately $0.7 million, of which $0.2 million was included in prepaid expenses and other and $0.9 million was included in accrued liabilities on the condensed consolidated balance sheet. At December 31, 2019, the fair value of these foreign currency contracts was a net asset of approximately $0.6 million, of which $0.8 million was included in prepaid expenses and other and $0.2 million was included in accrued liabilities on the condensed consolidated balance sheet. Amounts under these contracts were recognized in other operating income (expense) and in interest and other nonoperating income and expense as follows:
(a)Represents losses on foreign currency forward contracts related to 2020 acquisition of business operations from G4S. 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, 2020, the notional value of this long term contract was $104 million with a weighted-average maturity of 2.0 years. At September 30, 2020, the fair value of the long term cross currency swap contract was a $30.9 million net asset, of which $4.6 million is included in prepaid expenses and other and $26.3 million is included in other assets on the condensed consolidated balance sheet. At December 31, 2019, the fair value of the long term cross currency swap contract was a $2.1 million net asset, of which a $4.9 million asset is included in other assets and a $2.8 million liability is included in accrued liabilities on the condensed consolidated balance sheet. Amounts under this contract were recognized in other operating income (expense) to offset transaction gains or losses and in interest expense as follows:
In the first quarter of 2016, we entered into two interest rate swaps to 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, 2020, the notional value of these contracts was $40 million with a remaining weighted-average maturity of 0.3 years. At September 30, 2020, the fair value of these interest rates swaps was a liability of $0.2 million and was included in accrued liabilities on the condensed consolidated balance sheet. At December 31, 2019, the fair value of these interest rate swaps was an asset of $0.2 million and was included in prepaid expenses and other on the condensed consolidated balance sheet. The effect of these swaps is included in interest expense and was not significant in the first nine months of 2020 or 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, 2020, the notional value of these contracts was $400 million with a remaining weighted-average maturity of 1.7 years. At September 30, 2020, the fair value of these interest rate swaps was a net liability of $31.8 million, of which $9.6 million was included in accrued liabilities and $22.2 million was included in other liabilities on the condensed consolidated balance sheet. At December 31, 2019, the fair value of these interest rate swaps was a net liability of $15.0 million, of which $3.6 million was included in accrued liabilities and $11.4 million was included in other liabilities on the condensed consolidated balance sheet. The effect of these swaps is included in interest expense. The amounts recognized in the 2019 periods were not significant.
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. 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 2020.
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Debt |
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Debt | Debt
(a)These amounts were for short-term borrowings related to cash borrowed under lending arrangements used in the process of managing customer cash supply chains, which was classified as restricted cash and not available for general corporate purposes. See Note 13 for more details. Due to the change of contractual arrangements in the third quarter of 2020, these funds no longer fall under the definition of restricted cash borrowings. (b)Amounts outstanding are net of unamortized debt costs of $5.9 million as of September 30, 2020 and $3.0 million as of December 31, 2019. (c)Amounts outstanding are net of unamortized debt costs of $13.1 million as of September 30, 2020 and $7.1 million as of December 31, 2019. Long-Term Debt Senior Secured Credit Facility In April 2020, we amended our senior secured credit facility (the “Senior Secured Credit Facility”) with Bank of America, N.A. as administrative agent to increase the term loan borrowing by $590 million. After the amendment, the Senior Secured Credit Facility consisted of a $1 billion revolving credit facility (the "Revolving Credit Facility") and we had borrowed a total of $1,390 million of term loans thereunder (the "Term Loans"). Prior to the amendment, the balance of outstanding Term Loans was approximately $760 million. The proceeds of the incremental term loan borrowings were used to repay outstanding principal under the Revolving Credit Facility as well as certain fees, costs and expenses related to the closing of the G4S acquisition. In June 2020, we amended our Revolving Credit Facility to, among other things, change the methodology for calculating the Company’s leverage ratio by using a net first lien leverage ratio (net secured debt leverage ratio) instead of a total net debt leverage ratio. Under the amended agreement, the maximum net first lien leverage ratio for the remainder of 2020 is 4.25x. All Loans under the Revolving Credit Facility and the Term Loans will mature five years after the first amendment date (on February 8, 2024). Principal payments for the Term Loans are due quarterly in an amount 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, 2020, $938 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 total net debt leverage ratio. The margin on LIBOR borrowings, which can range from 1.25% to 2.50%, was 2% at September 30, 2020. The margin on alternate base rate borrowings, which can range from 0.25% to 1.50%, was 1% as of September 30, 2020. We also pay an annual commitment fee on the unused portion of the Revolving Credit Facility based on the Company’s total net leverage ratio. The commitment fee, which can range from 0.15% to 0.35%, was 0.3% as of September 30, 2020. Senior Unsecured Notes In June 2020, we issued at par five-year senior unsecured notes (the "2020 Senior Notes") in the aggregate principal amount of $400 million. The 2020 Senior Notes will mature on July 15, 2025 and bear an annual interest rate of 5.5%. The 2020 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. In October 2017, we issued at par ten-year senior unsecured notes (the "2017 Senior Notes" and together with the 2020 Senior Notes, the "Senior Notes") in the aggregate principal amount of $600 million. The 2017 Senior Notes will mature on October 15, 2027 and bear an annual interest rate of 4.625%. The 2017 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 $58 million, of which approximately $11 million was available at September 30, 2020. At September 30, 2020, we had undrawn letters of credit and guarantees of $47 million issued under these facilities. A $10 million facility expires in April 2022, a $32 million facility expires in December 2022 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, 2020. At September 30, 2020, we had undrawn letters of credit and guarantees of $22 million issued under these facilities. A $40 million facility expires in December 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 covenants at September 30, 2020.
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Credit losses |
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Allowance for Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit losses | Credit losses We are exposed to credit losses primarily through sales of our Core and High-Value services to customers with operations in the U.S. as well as customers in more than 100 countries outside the U.S. We typically invoice our customers on a monthly basis and payment terms are generally between 30 and 60 days. We assess our financial assets on a pool basis by aggregating financial assets with similar risk characteristics. We have pooled the financial assets by geographical location, specifically by country, because of the similarities within each country such as customers, payment terms, and services offered. Loss experience is monitored for each pool and we determine historical loss rates for each pool. These historical loss rates are the main assumption used in estimating expected credit losses over the life of the financial assets. We monitor the aging of accounts receivables by country and write off any accounts that are deemed uncollectible. We also monitor any significant economic events to identify any current or expected trends and risks within a pool that could impact the collectability of outstanding accounts receivables balances that were not contemplated or relevant during a previous period. The following table is a rollforward of the allowance for bad debts for the nine month period ending September 30, 2020. Allowance for doubtful accounts:
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Share-based compensation plans |
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Share-based Payment Arrangement [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, 2020 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. Prior to 2020, 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. In 2020, the retirement eligibility provisions for many employee awards were changed on a go-forward basis to require a six month notification period prior to actual retirement. For these awards, we recognize expense from the grant date to six months after the participant's retirement eligible 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 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:
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 contained 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 2020:
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 2020:
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 2020:
(a)Certain RSUs were modified in the first quarter of 2020 to change the awards' classification from share-settled to cash-settled. The weighted-average grant date fair value per share shown above is the removal of the original fair value. 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 2020, the performance period is from January 1, 2020 to December 31, 2022. 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 2020, the performance period is from January 1, 2020 to December 31, 2022. The following table summarizes all PSU activity during the first nine months of 2020:
(a)Certain IM PSUs were modified in the first quarter of 2020 to change the awards' classification from share-settled to cash-settled. The weighted-average grant date fair value per share shown above is the removal of the original fair value. (b)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, 2019 were 394.0 thousand, compared to target shares of 204.3 thousand. 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 2020:
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Capital Stock |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Capital Stock Common Stock At September 30, 2020, we had 100 million shares of common stock authorized and 49.4 million shares issued and outstanding. Dividends We paid regular quarterly dividends on our common stock during the last two years. On October 19, 2020, the Board declared a regular quarterly dividend of 15 cents per share payable on December 1, 2020. 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, 2020, 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 On February 6, 2020, our board of directors authorized a $250 million share repurchase program that expires on December 31, 2021. The authorization replaces our previous $200 million share repurchase program, authorized by the board of directors in May 2017, which expired December 31, 2019. Under the $200 million repurchase program, we repurchased 1.3 million shares for approximately $94 million, or an average cost of $69.35 per share. There was approximately $106 million remaining available under the $200 million repurchase program when it expired. Under the $250 million repurchase program, we are not obligated to repurchase any specific dollar amount or number of shares. 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 August 2020, 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 849,978 shares of our common stock for an average repurchase price of $58.83 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 August 2020 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. In September 2020, the ASR purchase period was subsequently terminated early and we received and retired an additional 246,676 shares under the ASR, resulting in an overall average repurchase price of $45.59 per share. At September 30, 2020, $200 million remains available under the $250 million repurchase program. Shares Used to Calculate Earnings per Share
(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 containing only a service requirement 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, 2020, and 0.3 million in the three months and 0.3 million in the nine months ended September 30, 2019.
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Supplemental cash flow information |
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Supplemental cash flow information | Supplemental cash flow information
Argentina Currency Conversions We have elected in the past and could continue in the future to repatriate cash from Brink's Argentina using different means to convert Argentine pesos into U.S. dollars. During the third quarter of 2020, we elected to use other market mechanisms to convert Argentine pesos into U.S. dollars. Conversions under these other market mechanisms generally settle at rates that are less favorable than the rates at which we remeasure the financial statements of Brink’s Argentina. As a result, in the three months ended September 30, 2020, we recognized $10.4 million of such conversion losses when we converted Argentine pesos into U.S. dollars at rates that were approximately 100% less favorable than the rates at which we remeasured the financial statements of Brink’s Argentina. The net cash flows from these transactions are treated as operating cash flows as the financial instruments are purchased specifically for resale and are generally sold within a short period of time from the date of purchase. Non-cash Investing and Financing Activities We acquired $24.3 million in armored vehicles and other equipment under financing lease arrangements in the first nine months of 2020 compared to $46.2 million in armored vehicles and other equipment acquired under financing lease arrangements in the first nine months of 2019. 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. The cash for which we have temporary title is restricted and cannot be used for any other purpose other than to service our customers who participate in this service offering. Prior to the third quarter of 2020, as part of this service offering, we entered into lending arrangements with some of our customers. Cash borrowed under these lending arrangements was used in the process of managing these customers' cash supply chains, was restricted and could not be used for any other purpose other than to service these customers. In Malaysia, we offer ATM replenishment services to certain of our financial institution customers. Providing this service requires our Malaysia subsidiary to take temporary title to the cash received in advance of ATM replenishment. The cash for which we have temporary title is restricted and cannot be used for any other purpose other than to service our customers who participate in this service offering. In accordance with a revolving credit facility, we are required to maintain a restricted cash reserve of $5.0 million and, due to this contractual restriction, we have classified this amount as restricted cash. At September 30, 2020, we held $203.0 million of restricted cash ($93.3 million represented restricted cash held for customers and $102.3 million represented accrued liabilities). At December 31, 2019, we held $158.0 million of restricted cash ($10.3 million represented short-term borrowings, $100.3 million represented restricted cash held for customers and $47.4 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.
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Contingent matters |
9 Months Ended |
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Sep. 30, 2020 | |
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.
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Reorganization and Restructuring |
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Reorganization and Restructuring | Reorganization and Restructuring Other Restructurings Management periodically implements restructuring actions in targeted sections of our business. As a result of these actions, we recognized net costs of $20.5 million in the first nine months of 2019, primarily severance costs and charges related to the modification of share-based compensation awards. We recognized $49.7 million net costs in operating profit and $0.6 million costs in interest and other nonoperating income (expense) in the first nine months of 2020, primarily severance costs. For the restructuring actions that have not yet been completed, we expect to incur additional costs between $9 million and $11 million in future periods. The following table summarizes the changes in the accrued liability for costs incurred, payments and utilization, and foreign currency exchange effects of other restructurings:
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Basis of presentation (Policies) |
9 Months Ended |
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Sep. 30, 2020 | |
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, deferred tax assets, purchase price allocations and foreign currency translation. |
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.
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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 5% of our consolidated revenues for the first nine months of 2020 and 6% of our consolidated revenues for the first nine months of 2019. 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 2020 and 2019, the Argentine peso declined approximately 22% (from 59.9 to 76.3 pesos to the U.S. dollar) and approximately 35% (from 37.6 to 57.5 pesos to the U.S. dollar), respectively. For the year ended December 31, 2019, the Argentine peso declined approximately 37% (from 37.6 to 59.9 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 first nine months of 2020, we recognized a $5.3 million pretax remeasurement loss. In the first nine months of 2019, we recognized a $10.4 million pretax remeasurement loss. At September 30, 2020, Argentina's economy remains highly inflationary for accounting purposes. At September 30, 2020, we had net monetary assets denominated in Argentine pesos of $19.6 million (including cash of $9.3 million). At September 30, 2020, we had net nonmonetary assets of $147.0 million (including $99.8 million of goodwill). At September 30, 2020, 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. During the third quarter of 2020, we elected to use other market mechanisms to convert Argentine pesos into U.S. dollars. Conversions under these other market mechanisms generally settle at rates that are less favorable than the rates at which we remeasure the financial statements of Brink’s Argentina. As a result, in the three months ended September 30, 2020, we recognized $10.4 million of such conversion losses when we converted Argentine pesos into U.S. dollars at rates that were approximately 100% less favorable than the rates at which we remeasured the financial statements of Brink’s Argentina. These conversion losses are classified in the condensed consolidated statements of operations as other operating income (expense). Although the Argentine government has implemented currency controls, 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 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. As a result of these conditions, we do not meet the accounting criteria for control over our Venezuelan operations and, as a result, we report the results of our investment in our Venezuelan subsidiaries using the cost method of accounting, the basis of which approximates zero. Prior to the imposition of the U.S. government sanctions in 2019, we provided immaterial amounts of financial support to our Venezuela operations. We continue to monitor the situation in Venezuela, including the imposition of sanctions by the U.S. government targeting Venezuela.
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Goodwill | Goodwill Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. We review goodwill for impairment annually, as of October 1, and whenever events or circumstances in interim periods indicate that it is more likely than not that an impairment may have occurred. Given the COVID-19 pandemic, impairment indicators were reviewed as of June 30, 2020 and we concluded that, due to decreases in our forecasted results, an impairment evaluation for all reporting units was necessary. We performed the interim impairment test as of April 30, 2020 and elected to forego the optional qualitative assessment and performed a quantitative goodwill impairment test instead. We estimated the fair value of each reporting unit using a weighting of three valuation methodologies: the Income Approach, the Public Company Market Multiple Method, and the Similar Transactions Method with greatest weight placed on the Income Approach. The resulting reporting unit fair values were compared to each reporting unit's carrying value. As a result of the evaluation, we concluded that the fair value of each reporting unit exceeded its carrying value for all reporting units, other than France, by a range of 21% to 199%. For the France reporting unit, although the fair value exceeded carrying value by only 8%, goodwill related to the France reporting unit was not impaired as of June 30, 2020. Given the COVID-19 pandemic, impairment indicators were reviewed as of September 30, 2020. We concluded that there were no events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We will continue to monitor results in future periods to determine whether any indicators of impairment exist that would cause us to perform an impairment review.
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Restricted Cash | Restricted CashIn France and Malaysia, we offer services to certain of our customers where we manage some or all of their cash supply chains. In connection with these offerings, we take temporary title to certain customers' cash, which is included as restricted cash in our financial statements due to customer agreement or regulation. |
New Accounting Standards | New Accounting Standards 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 amendments in this ASU eliminate some disclosures that are no longer considered cost beneficial, modify/clarify the specific requirements of certain disclosures and add disclosure requirements for Level 3 fair value measurements. We adopted ASU 2018-13 effective January 1, 2020 and the standard did not have a significant impact on our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the way entities recognize impairment of many financial assets. This new guidance requires immediate recognition of estimated credit losses expected to occur over the life of the asset and incorporates estimated, forward-looking data when measuring lifetime Expected Credit Losses (ECL). The standard was designed to provide greater transparency and understanding of credit risk by requiring enhanced financial statement disclosures which fall into three general categories: ECL estimate methodology and assumptions, quantitative information and metrics, and policy and process explanations. We adopted the standard using the modified retrospective transition method. Results for the reporting period beginning January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. We recognized a cumulative-effect adjustment decreasing retained earnings by $1.7 million on January 1, 2020. The adoption of the standard also resulted in expanded disclosures related to credit losses (see Note 10). In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod tax allocations and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 will be effective for us on January 1, 2021. We are currently evaluating the impact it will have on our financial statements.
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Revenue from contracts with customers (Policies) |
9 Months Ended |
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Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 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. 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, 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 assets are included in prepaid expenses and other on the condensed consolidated balance sheet. 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, which is included in accrued liabilities on the condensed consolidated balance sheet. The amount of revenue recognized in the nine months ended September 30, 2020 that was included in the January 1, 2020 contract liability balance was $10.7 million. This revenue consists of services provided to customers who had prepaid for those services prior to the current year. We also recognized revenue of $1.3 million in the nine months ended September 30, 2020 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, 2020, net capitalized costs to obtain contracts was included in other assets on the condensed consolidated balance sheet. The capitalized amount at September 30, 2020 and amortization expense in the first nine months of 2020 were not significant. 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.
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Revenue from contracts with customers (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Revenue Disaggregated by Reportable Segment and Type of Service
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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:
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Segment information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(a)This line item includes an adjustment to bad debt expense reported by the segments to the estimated consolidated amount required by U.S. GAAP. This line item also includes an adjustment to expense recognized by our Mexican subsidiaries for an annual profit sharing incentive based on local taxable income. U.S. GAAP requires that this plan should be accounted for similar to income tax expense on an interim reporting basis. (b)See details regarding the impact of the Internal Loss at Note 1. (c)Costs (primarily third party expenses) related to accounting standard implementation. Additional information provided at page 46.
(a)This line item includes an adjustment to bad debt expense reported by the segments to the estimated consolidated amount required by U.S. GAAP. This line item also includes an adjustment to expense recognized by our Mexican subsidiaries for an annual profit sharing incentive based on local taxable income. U.S. GAAP requires that this plan should be accounted for similar to income tax expense on an interim reporting basis. (b)See details regarding the impact of the Internal Loss at Note 1. (c)Costs (primarily third party expenses) related to accounting standard implementation. Additional information provided at page 46.
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Reconciliation of Assets from Segment to Consolidated [Table Text Block] |
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Retirement benefits (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The components of net periodic pension cost for our pension plans were as follows:
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Schedule of Costs of Retirement Plans | The components of net periodic postretirement cost related to retirement benefits other than pensions were as follows:
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Income taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) |
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Acquisitions and Dispositions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
(a)Intangible assets are composed of customer relationships ($175 million fair value and 15 year amortization period). (b)Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating G4S operations with our existing operations. Goodwill has been provisionally assigned to the Global Markets-EMEA reporting unit ($255 million), the Global Markets-Asia reporting unit ($165 million) and the Global Markets-South America reporting unit ($4 million). We do not currently expect goodwill in these reporting units to be deductible for tax purposes.
(a)Intangible assets are composed of customer relationships ($47 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). (b)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.
(a)Intangible assets are composed of developed technology, customer relationships and trade names. (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.
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Business Acquisition, Pro Forma Information | Below are the actual results included in Brink's consolidated results for the businesses we acquired in the first nine months of 2020.
The pro forma consolidated results of Brink’s presented below reflect a hypothetical ownership as of January 1, 2018 for the businesses we acquired during 2019 and a hypothetical ownership as of January 1, 2019 for the businesses we acquired in the first nine months of 2020.
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Accumulated other comprehensive income (loss) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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:
(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):
(b)2020 foreign currency translation adjustment amounts arising during the current period reflect primarily the Mexican peso and Brazilian real, partially offset by the euro and various currencies related to the G4S acquisition. (c)Pretax gains and losses on cash flow hedges are classified in the condensed consolidated statements of operations as: •other operating income (expense) ($0.8 million gain in the three months ended September 30, 2020 and $8.9 million gain in the three months ended September 30, 2019; as well as $30.6 million gain in the nine months ended September 30, 2020 and $10.3 million gain in the nine months ended September 30, 2019) •interest expense ($2.9 million of expense in the three months ended September 30, 2020 and $1.4 million of expense in the three months ended September 30, 2019; as well as $6.8 million of expense in the nine months ended September 30, 2020 and $3.9 million of expense in the nine months ended September 30, 2019).
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Reclassification Out of Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive loss attributable to Brink’s are as follows:
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Fair value of financial instruments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The fair value and carrying value of our material fixed-rate debt is as follows:
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Derivatives Not Designated as Hedging Instruments [Table Text Block] | Amounts under these contracts were recognized in other operating income (expense) and in interest and other nonoperating income and expense as follows:
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Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | Amounts under this contract were recognized in other operating income (expense) to offset transaction gains or losses and in interest expense as follows:
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Schedule of Interest Rate Derivatives [Table Text Block] | The effect of these swaps is included in interest expense. The amounts recognized in the 2019 periods were not significant.
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt |
(a)These amounts were for short-term borrowings related to cash borrowed under lending arrangements used in the process of managing customer cash supply chains, which was classified as restricted cash and not available for general corporate purposes. See Note 13 for more details. Due to the change of contractual arrangements in the third quarter of 2020, these funds no longer fall under the definition of restricted cash borrowings. (b)Amounts outstanding are net of unamortized debt costs of $5.9 million as of September 30, 2020 and $3.0 million as of December 31, 2019. (c)Amounts outstanding are net of unamortized debt costs of $13.1 million as of September 30, 2020 and $7.1 million as of December 31, 2019.
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Credit losses (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Allowance for Credit Loss | Allowance for doubtful accounts:
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Share-based compensation plans (Tables) |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | 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:
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Option activity | The following table summarizes performance-based stock option activity during the first nine months of 2020:
The following table summarizes time-based stock option activity during the first nine months of 2020:
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Nonvested share activity | The following table summarizes RSU activity during the first nine months of 2020:
(a)Certain RSUs were modified in the first quarter of 2020 to change the awards' classification from share-settled to cash-settled. The weighted-average grant date fair value per share shown above is the removal of the original fair value. The following table summarizes all PSU activity during the first nine months of 2020:
(a)Certain IM PSUs were modified in the first quarter of 2020 to change the awards' classification from share-settled to cash-settled. The weighted-average grant date fair value per share shown above is the removal of the original fair value. (b)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, 2019 were 394.0 thousand, compared to target shares of 204.3 thousand. The following table summarizes all DSU activity during the first nine months of 2020:
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Capital Stock (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares | Shares Used to Calculate Earnings per Share
(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 containing only a service requirement 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, 2020, and 0.3 million in the three months and 0.3 million in the nine months ended September 30, 2019.
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Supplemental cash flow information (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures |
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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.
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Reorganization and Restructuring (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the changes in the accrued liability for costs incurred, payments and utilization, and foreign currency exchange effects of other restructurings:
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Basis of presentation (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
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Sep. 30, 2020
USD ($)
$ / $
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Dec. 31, 2019
USD ($)
$ / $
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Sep. 30, 2019
USD ($)
$ / $
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Sep. 30, 2020
USD ($)
segment
$ / $
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Sep. 30, 2019
USD ($)
$ / $
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Dec. 31, 2019
USD ($)
$ / $
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Jun. 30, 2020 |
Jan. 01, 2020
USD ($)
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Mar. 31, 2019
USD ($)
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[2] |
Dec. 31, 2018
$ / $
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Number of operating segments | segment | 3 | |||||||||||||||
Net monetary assets | $ 1,704,900,000 | $ 1,232,600,000 | $ 1,704,900,000 | $ 1,232,600,000 | ||||||||||||
Cash and cash equivalents | 592,400,000 | 311,000,000.0 | 592,400,000 | 311,000,000.0 | ||||||||||||
Goodwill | 1,184,400,000 | 784,600,000 | 1,184,400,000 | 784,600,000 | ||||||||||||
Argentina conversion losses | (5,300,000) | $ (10,400,000) | ||||||||||||||
Revenues | 970,500,000 | $ 928,400,000 | 2,669,300,000 | $ 2,747,400,000 | ||||||||||||
Provision for doubtful accounts | 39,500,000 | 30,200,000 | 39,500,000 | 30,200,000 | ||||||||||||
Restricted cash | $ 203,000,000.0 | $ 158,000,000.0 | $ 203,000,000.0 | $ 158,000,000.0 | ||||||||||||
Cumulative effect of change in accounting principle | $ (1,700,000) | [1] | $ 0 | |||||||||||||
Argentina, Pesos | Argentina | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Percent of Consolidated Revenue | 5.00% | 6.00% | ||||||||||||||
Rate decrease percent | 22.00% | 37.00% | 35.00% | 22.00% | 35.00% | 37.00% | ||||||||||
Official exchange rate | $ / $ | 76.3 | 59.9 | 57.5 | 76.3 | 57.5 | 59.9 | 37.6 | |||||||||
Net remeasurement loss | $ (5,300,000) | $ 10,400,000 | ||||||||||||||
Net monetary assets | $ 19,600,000 | 19,600,000 | ||||||||||||||
Cash and cash equivalents | 9,300,000 | 9,300,000 | ||||||||||||||
Nonmonetary assets | 147,000,000.0 | 147,000,000.0 | ||||||||||||||
Goodwill | 99,800,000 | 99,800,000 | ||||||||||||||
Equity Securities | 0 | 0 | ||||||||||||||
Argentina conversion losses | $ 10,400,000 | |||||||||||||||
Devaluation settled rates | 100.00% | |||||||||||||||
Retained Earnings | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Cumulative effect of change in accounting principle | (1,700,000) | [1] | $ 28,800,000 | |||||||||||||
Accounting Standards Update 2016-13 | Retained Earnings | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Cumulative effect of change in accounting principle | $ 1,700,000 | |||||||||||||||
Internal Loss AR Rebuild | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Third-party expense | 300,000 | $ 4,500,000 | ||||||||||||||
Revenues | $ 4,000,000.0 | |||||||||||||||
Bank fees | 300,000 | |||||||||||||||
Increase to bad debt expense | $ 6,400,000 | $ 13,700,000 | 9,600,000 | |||||||||||||
Provision for doubtful accounts | $ 18,200,000 | 18,200,000 | ||||||||||||||
Accounts receivable | $ 18,800,000 | $ 18,800,000 | ||||||||||||||
Percent of Accounts Receivable | 97.00% | 97.00% | ||||||||||||||
FRANCE | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Percentage of Fair Value in Excess of Carrying Amount | 8.00% | |||||||||||||||
Minimum | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Percentage of Fair Value in Excess of Carrying Amount | 21.00% | |||||||||||||||
Maximum | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Percentage of Fair Value in Excess of Carrying Amount | 199.00% | |||||||||||||||
Revolving Credit Facility | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Restricted cash | $ 5,000,000.0 | $ 5,000,000.0 | ||||||||||||||
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Revenue from contracts with customers - disaggregation of revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | $ 970.5 | $ 928.4 | $ 2,669.3 | $ 2,747.4 |
Internal Loss AR Rebuild | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 4.0 | |||
Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 488.9 | 1,460.0 | ||
High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 402.7 | 1,178.2 | ||
Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 36.8 | 109.2 | ||
Reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 970.5 | 924.6 | 2,669.3 | 2,743.9 |
Reportable segments | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 500.0 | 488.9 | 1,376.7 | 1,460.0 |
Reportable segments | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 422.6 | 398.9 | 1,169.8 | 1,174.7 |
Reportable segments | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 47.9 | 36.8 | 122.8 | 109.2 |
Reportable segments | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 404.1 | 446.7 | 1,197.5 | 1,323.7 |
Reportable segments | North America | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 243.7 | 275.7 | 721.9 | 832.7 |
Reportable segments | North America | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 160.4 | 171.0 | 475.6 | 491.0 |
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 | 0.0 | 0.0 |
Reportable segments | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 172.0 | 229.0 | 528.8 | 684.5 |
Reportable segments | South America | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 87.4 | 125.6 | 274.9 | 363.6 |
Reportable segments | South America | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 80.0 | 101.1 | 241.5 | 313.2 |
Reportable segments | South America | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 4.6 | 2.3 | 12.4 | 7.7 |
Reportable segments | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 394.4 | 248.9 | 943.0 | 735.7 |
Reportable segments | Rest of World | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 168.9 | 87.6 | 379.9 | 263.7 |
Reportable segments | Rest of World | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 182.2 | 126.8 | 452.7 | 370.5 |
Reportable segments | Rest of World | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 43.3 | 34.5 | 110.4 | 101.5 |
Segment Reconciling Items | ||||
Disaggregation of Revenue [Line Items] | ||||
Acquisitions and dispositions, Revenues | 0.0 | (0.2) | 0.0 | (0.5) |
Segment Reconciling Items | Internal Loss AR Rebuild | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | $ 0.0 | 4.0 | $ 0.0 | 4.0 |
Segment Reconciling Items | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 0.0 | |||
Acquisitions and dispositions, Revenues | 0.0 | 0.0 | ||
Segment Reconciling Items | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Acquisitions and dispositions, Revenues | (0.2) | (0.5) | ||
Segment Reconciling Items | High-value services | Internal Loss AR Rebuild | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 4.0 | 4.0 | ||
Segment Reconciling Items | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 0.0 | |||
Acquisitions and dispositions, Revenues | $ 0.0 | $ 0.0 |
Revenue from contracts with customers - contract balances (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 708.0 | $ 635.6 |
Receivable - increase (decrease) | 72.4 | |
Contract Asset | 1.3 | 1.9 |
Contract asset increase (decrease) | (0.6) | |
Contract Liability | 9.4 | $ 12.8 |
Contract liability - increase (decrease) | (3.4) | |
Revenue recognized included in beginning balance | 10.7 | |
Revenue - revenue from performance obligation in prior periods | $ 1.3 |
Segment information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Segment Reporting Information [Line Items] | |||||
Revenues | $ 970.5 | $ 928.4 | $ 2,669.3 | $ 2,747.4 | |
Operating Profit | 76.4 | 52.5 | 101.6 | 163.5 | |
Foreign currency transaction gains (losses) | (5.3) | (10.4) | |||
Reportable segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 970.5 | 924.6 | 2,669.3 | 2,743.9 | |
Operating Profit | 130.1 | 130.3 | 302.1 | 358.7 | |
Corporate expenses | |||||
Segment Reporting Information [Line Items] | |||||
General, administrative and other expenses | (26.6) | (26.2) | (78.5) | (85.8) | |
Foreign currency transaction gains (losses) | (7.9) | (0.4) | (11.5) | 0.2 | |
Reconciliation of segment policies to GAAP(a) | 4.3 | (1.3) | 24.1 | 2.9 | |
Other items not allocated to segments | |||||
Segment Reporting Information [Line Items] | |||||
Acquisitions and dispositions, Revenues | 0.0 | (0.2) | 0.0 | (0.5) | |
Reorganization and Restructuring | (5.1) | (6.4) | (49.7) | (20.5) | |
Acquisitions and dispositions, Operating profit | (16.2) | (24.0) | (66.2) | (63.8) | |
Reporting compliance | 0.1 | (0.3) | (0.4) | (2.0) | |
Other items not allocated to segments | Argentina | |||||
Segment Reporting Information [Line Items] | |||||
Argentina highly inflationary impact | (3.2) | (7.9) | (8.4) | (12.3) | |
North America | Reportable segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 404.1 | 446.7 | 1,197.5 | 1,323.7 | |
Operating Profit | 36.9 | 38.7 | 87.8 | 129.1 | |
South America | Reportable segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 172.0 | 229.0 | 528.8 | 684.5 | |
Operating Profit | 38.9 | 59.4 | 113.6 | 147.4 | |
Rest of World | Reportable segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 394.4 | 248.9 | 943.0 | 735.7 | |
Operating Profit | 54.3 | 32.2 | 100.7 | 82.2 | |
Internal Loss AR Rebuild | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 4.0 | ||||
Internal loss | $ (6.4) | (13.7) | (9.6) | ||
Internal Loss AR Rebuild | Other items not allocated to segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0.0 | 4.0 | 0.0 | 4.0 | |
Internal loss | $ 0.9 | $ (11.3) | $ (9.9) | $ (13.9) |
Segment information - Assets by Reportable Segments (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Assets held by Reportable Segment | $ 4,903.1 | $ 3,763.8 |
Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Assets held by Reportable Segment | 4,495.4 | 3,495.9 |
Corporate items | ||
Segment Reporting Information [Line Items] | ||
Assets held by Reportable Segment | 407.7 | 267.9 |
North America | Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Assets held by Reportable Segment | 1,614.1 | 1,683.0 |
South America | Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Assets held by Reportable Segment | 707.5 | 806.1 |
Rest of World | Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Assets held by Reportable Segment | $ 2,173.8 | $ 1,006.8 |
Retirement benefits - Retirement Cost (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1.8 | $ 2.5 | $ 7.7 | $ 7.4 |
Interest cost on projected benefit obligation | 9.8 | 11.1 | 28.4 | 33.4 |
Return on assets – expected | (14.7) | (15.1) | (43.5) | (45.7) |
Amortization of losses | 8.7 | 6.0 | 25.2 | 17.8 |
Amortization of prior service credit | 0.0 | (0.1) | ||
Settlement loss | 0.6 | 0.6 | 1.1 | 1.5 |
Net periodic pension cost | 6.2 | 5.0 | 18.9 | 14.4 |
Retirement benefits other than pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.1 | 0.1 | ||
Interest cost on projected benefit obligation | 4.1 | 5.0 | 12.4 | 15.9 |
Return on assets – expected | (3.3) | (3.4) | (9.8) | (10.0) |
Amortization of losses | 6.3 | 5.1 | 18.5 | 16.3 |
Amortization of prior service credit | (1.2) | (1.3) | (3.7) | (3.8) |
Net periodic pension cost | 5.9 | 5.4 | 17.5 | 18.5 |
U.S. Plans | Pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.0 | 0.0 | 0.0 | 0.0 |
Interest cost on projected benefit obligation | 6.7 | 8.5 | 20.0 | 25.6 |
Return on assets – expected | (11.6) | (12.6) | (34.7) | (38.0) |
Amortization of losses | 7.3 | 4.9 | 21.4 | 14.7 |
Amortization of prior service credit | 0.0 | 0.0 | ||
Settlement loss | 0.0 | 0.0 | 0.0 | 0.0 |
Net periodic pension cost | 2.4 | 0.8 | 6.7 | 2.3 |
Non-U.S. Plans | Pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1.8 | 2.5 | 7.7 | 7.4 |
Interest cost on projected benefit obligation | 3.1 | 2.6 | 8.4 | 7.8 |
Return on assets – expected | (3.1) | (2.5) | (8.8) | (7.7) |
Amortization of losses | 1.4 | 1.1 | 3.8 | 3.1 |
Amortization of prior service credit | 0.0 | (0.1) | ||
Settlement loss | 0.6 | 0.6 | 1.1 | 1.5 |
Net periodic pension cost | 3.8 | 4.2 | 12.2 | 12.1 |
UMWA Plans | Retirement benefits other than pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.0 | 0.0 | ||
Interest cost on projected benefit obligation | 3.2 | 4.1 | 9.6 | 13.2 |
Return on assets – expected | (3.3) | (3.4) | (9.8) | (10.0) |
Amortization of losses | 4.2 | 3.9 | 12.3 | 12.8 |
Amortization of prior service credit | (1.2) | (1.2) | (3.5) | (3.5) |
Net periodic pension cost | 2.9 | 3.4 | 8.6 | 12.5 |
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 | 0.9 | 2.8 | 2.7 |
Return on assets – expected | 0.0 | 0.0 | 0.0 | 0.0 |
Amortization of losses | 2.1 | 1.2 | 6.2 | 3.5 |
Amortization of prior service credit | 0.0 | (0.1) | (0.2) | (0.3) |
Net periodic pension cost | $ 3.0 | $ 2.0 | $ 8.9 | $ 6.0 |
Income taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for income taxes (in millions) | $ 58.9 | $ 14.7 | $ 3.5 | $ 37.1 |
Effective tax rate | 161.40% | 67.40% | (3500.00%) | 51.00% |
Acquisitions and Dispositions - Acquired Entities (Details) $ in Millions |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 09, 2020 |
Sep. 30, 2019 |
Jun. 14, 2019 |
Jun. 12, 2019 |
Jan. 04, 2019
USD ($)
employee
vehicle
branch
|
Sep. 30, 2020
USD ($)
employee
acquisition
|
Dec. 31, 2019
USD ($)
|
|
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Restricted cash | $ 203.0 | $ 158.0 | |||||
Right-of-use assets, net | 325.9 | 270.3 | |||||
Goodwill | 1,184.4 | $ 784.6 | |||||
Fair value of noncontrolling interest | $ (67.7) | ||||||
G4Si | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date | Mar. 09, 2020 | ||||||
Percentage of shares acquired | 100.00% | ||||||
G4S | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of shares acquired | 100.00% | ||||||
Percentage of total purchase price | 90.00% | ||||||
Annual revenues | $ 740.0 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Purchase consideration - cash paid | 672.3 | ||||||
Contingent consideration | 38.0 | ||||||
Liabilities assumed from seller | 12.2 | ||||||
Receivable from seller | (2.8) | ||||||
Fair value of purchase consideration | 719.7 | ||||||
Cash | 218.8 | ||||||
Restricted cash | 30.1 | ||||||
Accounts receivable | 136.8 | ||||||
Other current assets | 25.5 | ||||||
Property and equipment, net | 123.4 | ||||||
Right-of-use assets, net | 73.7 | ||||||
Intangible assets | 175.0 | ||||||
Goodwill | 424.0 | ||||||
Other noncurrent assets | 19.3 | ||||||
Current liabilities | (286.3) | ||||||
Lease liabilities | (59.5) | ||||||
Noncurrent liabilities | (93.4) | ||||||
Fair value of net assets acquired | $ 787.4 | ||||||
G4S Tranche III | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of shares acquired | 100.00% | ||||||
Rodoban | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date | Jan. 04, 2019 | ||||||
Percentage of shares acquired | 100.00% | ||||||
Annual revenues | $ 80.0 | ||||||
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 | 8.9 | ||||||
Other current assets | 0.5 | ||||||
Property and equipment, net | 2.4 | ||||||
Intangible assets | 49.0 | ||||||
Goodwill | 85.1 | ||||||
Other noncurrent assets | 5.8 | ||||||
Current liabilities | (11.4) | ||||||
Noncurrent liabilities | (7.9) | ||||||
Fair value of net assets acquired | 133.8 | ||||||
Other Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Entity number of employees | employee | 1,300 | ||||||
Number of Businesses Acquired | acquisition | 3 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Purchase consideration - cash paid | $ 60.6 | ||||||
Contingent consideration | 1.6 | ||||||
Indemnification asset | (13.3) | ||||||
Fair value of purchase consideration | 48.9 | ||||||
Cash | 6.5 | ||||||
Accounts receivable | 4.5 | ||||||
Property and equipment, net | 7.1 | ||||||
Intangible assets | 24.3 | ||||||
Goodwill | 34.3 | ||||||
Other noncurrent assets | 2.0 | ||||||
Current liabilities | (15.2) | ||||||
Noncurrent liabilities | (14.6) | ||||||
Fair value of net assets acquired | $ 48.9 | ||||||
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% | ||||||
Customer relationships | G4S | |||||||
Business Acquisition [Line Items] | |||||||
Remaining Amortization Period | 15 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Intangible assets | $ 175.0 | ||||||
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 | 47.0 | ||||||
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 | 1.0 | ||||||
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 | $ 1.0 | ||||||
EMEA | G4S | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Goodwill | $ 255.0 | ||||||
Asia Pacific | G4S | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Goodwill | 165.0 | ||||||
South America | G4S | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Goodwill | $ 4.0 |
Acquisitions and Dispositions - Pro Forma (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Business Acquisition [Line Items] | ||||
Actual revenue results included in consolidation | $ 156.1 | $ 285.0 | ||
Actual net income results included in consolidation | 5.2 | 8.2 | ||
Revenues | 970.5 | $ 928.4 | 2,669.3 | $ 2,747.4 |
Net income (loss) attributable to Brink’s | (23.9) | 5.4 | (9.2) | 31.6 |
Pro forma revenue results | 975.8 | 1,118.4 | 2,861.3 | 3,329.8 |
Pro forma net income results | (24.0) | 8.8 | (13.4) | 41.3 |
Transaction costs | 17.7 | 5.6 | 17.7 | 5.6 |
G4S | ||||
Business Acquisition [Line Items] | ||||
Actual revenue results included in consolidation | 156.1 | 285.0 | ||
Actual net income results included in consolidation | 5.2 | 8.2 | ||
Pro forma revenue results | 5.3 | 185.0 | 192.0 | 555.0 |
Pro forma net income results | $ (0.1) | 2.7 | $ (4.2) | 8.0 |
Rodoban | ||||
Business Acquisition [Line Items] | ||||
Pro forma revenue results | 0.6 | |||
Pro forma net income results | 0.0 | |||
Other Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Pro forma revenue results | 5.0 | 26.8 | ||
Pro forma net income results | $ 0.7 | $ 1.7 |
Acquisitions and Dispositions - Dispositions (Details) - France security services company - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Jan. 01, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Date | Jan. 01, 2020 | ||
Percent of shares sold | 100.00% | ||
Net sales price | $ 11.0 | ||
Gain on sale of business | $ 4.7 | ||
Annual revenues | $ 3.0 |
Accumulated other comprehensive income (loss) - Amounts in OCI (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | $ 42.3 | $ (33.6) | $ (38.5) | $ (47.0) | ||||
Amounts Arising During the Current Period, Income Tax | (0.2) | (0.7) | (5.1) | 4.9 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 16.5 | 2.9 | 17.3 | 25.4 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | (3.9) | 0.0 | (1.2) | (5.4) | ||||
Other comprehensive income (loss) | 54.7 | $ 35.2 | $ (117.4) | (31.4) | $ 7.1 | $ 2.2 | (27.5) | (22.1) |
Cost of revenues | 742.9 | 714.4 | 2,120.2 | 2,125.6 | ||||
Selling, general and administrative expenses | 141.4 | 155.0 | 429.1 | 451.3 | ||||
Interest and other income (expense) | (12.8) | (7.8) | (31.4) | (22.1) | ||||
Other operating income (expense) | (9.8) | (6.5) | (18.4) | (7.0) | ||||
Interest expense | 27.1 | 22.9 | 70.3 | 68.6 | ||||
Benefit plan adjustments | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | (3.3) | (2.2) | (0.6) | (5.8) | ||||
Amounts Arising During the Current Period, Income Tax | 0.4 | 0.8 | 0.7 | 1.4 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 14.4 | 10.3 | 41.1 | 31.8 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | (3.4) | (2.5) | (9.8) | (7.6) | ||||
Other comprehensive income (loss) | 8.1 | 6.4 | 31.4 | 19.8 | ||||
Foreign currency translation adjustments | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | 41.6 | (35.2) | (51.1) | (25.9) | ||||
Amounts Arising During the Current Period, Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Other comprehensive income (loss) | 41.6 | (35.2) | (51.1) | (25.9) | ||||
Gains (losses) on cash flow hedges | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | 2.0 | 3.5 | 10.6 | (16.0) | ||||
Amounts Arising During the Current Period, Income Tax | (0.6) | (1.5) | (5.8) | 3.5 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 2.1 | (7.4) | (23.8) | (6.4) | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | (0.5) | 2.5 | 8.6 | 2.2 | ||||
Other comprehensive income (loss) | 3.0 | (2.9) | (10.4) | (16.7) | ||||
Gains (losses) on cash flow hedges | Reclassification out of accumulated other comprehensive income | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Other operating income (expense) | 0.8 | 8.9 | 30.6 | 10.3 | ||||
Interest expense | 2.9 | 1.4 | 6.8 | 3.9 | ||||
AOCI Attributable to Parent | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | 40.3 | (33.9) | (41.1) | (47.7) | ||||
Amounts Arising During the Current Period, Income Tax | (0.2) | (0.7) | (5.1) | 4.9 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 16.5 | 2.9 | 17.3 | 25.4 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | (3.9) | 0.0 | (1.2) | (5.4) | ||||
Other comprehensive income (loss) | 52.7 | $ 34.2 | $ (117.0) | (31.7) | $ 7.0 | $ 1.9 | (30.1) | (22.8) |
Foreign currency translation adjustments | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | 2.0 | 0.3 | 2.6 | 0.7 | ||||
Amounts Arising During the Current Period, Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Other comprehensive income (loss) | 2.0 | 0.3 | 2.6 | 0.7 | ||||
AOCI Attributable to Noncontrolling Interest | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | 2.0 | 0.3 | 2.6 | 0.7 | ||||
Amounts Arising During the Current Period, Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Other comprehensive income (loss) | 2.0 | 0.3 | 2.6 | 0.7 | ||||
Benefit plan adjustments(a) | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | (3.3) | (2.2) | (0.6) | (5.8) | ||||
Amounts Arising During the Current Period, Income Tax | 0.4 | 0.8 | 0.7 | 1.4 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 14.4 | 10.3 | 41.1 | 31.8 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | (3.4) | (2.5) | (9.8) | (7.6) | ||||
Other comprehensive income (loss) | 8.1 | 6.4 | 31.4 | 19.8 | ||||
Benefit plan adjustments(a) | Reclassification out of accumulated other comprehensive income | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Cost of revenues | 1.3 | 1.9 | 6.3 | 5.7 | ||||
Selling, general and administrative expenses | 0.5 | 0.6 | 1.5 | 1.8 | ||||
Interest and other income (expense) | 10.3 | 7.9 | 28.6 | 25.4 | ||||
Foreign currency translation adjustments | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | 43.6 | (34.9) | (48.5) | (25.2) | ||||
Amounts Arising During the Current Period, Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Other comprehensive income (loss) | 43.6 | (34.9) | (48.5) | (25.2) | ||||
Gains (losses) on cash flow hedges(c) | ||||||||
Other Comprehensive Income Loss [Line Items] | ||||||||
Amounts Arising During the Current Period, Pretax | 2.0 | 3.5 | 10.6 | (16.0) | ||||
Amounts Arising During the Current Period, Income Tax | (0.6) | (1.5) | (5.8) | 3.5 | ||||
Amounts Reclassified to Net Income (Loss), Pretax | 2.1 | (7.4) | (23.8) | (6.4) | ||||
Amounts Reclassified to Net Income (Loss), Income Tax | (0.5) | 2.5 | 8.6 | 2.2 | ||||
Other comprehensive income (loss) | $ 3.0 | $ (2.9) | $ (10.4) | $ (16.7) |
Accumulated other comprehensive income (loss) - Reclasses Out Of AOCI (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Beginning balance | $ 191.8 | $ 191.8 | ||||||
Other comprehensive income (loss) | $ 54.7 | $ 35.2 | (117.4) | $ (31.4) | $ 7.1 | $ 2.2 | (27.5) | $ (22.1) |
Ending balance | 90.0 | 90.0 | ||||||
Benefit Plan Adjustments | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Beginning balance | (583.0) | (583.0) | ||||||
Other comprehensive income (loss) before reclassifications | 0.1 | |||||||
Amounts reclassified from accumulated other comprehensive loss to net income | 31.3 | |||||||
Other comprehensive income (loss) | 8.1 | 6.4 | 31.4 | 19.8 | ||||
Ending balance | (551.6) | (551.6) | ||||||
Foreign Currency Translation Adjustments | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Beginning balance | (382.8) | (382.8) | ||||||
Other comprehensive income (loss) before reclassifications | (51.1) | |||||||
Amounts reclassified from accumulated other comprehensive loss to net income | 0.0 | |||||||
Other comprehensive income (loss) | 41.6 | (35.2) | (51.1) | (25.9) | ||||
Ending balance | (433.9) | (433.9) | ||||||
Gains (Losses) on Cash Flow Hedges | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Beginning balance | (13.2) | (13.2) | ||||||
Other comprehensive income (loss) before reclassifications | 4.8 | |||||||
Amounts reclassified from accumulated other comprehensive loss to net income | (15.2) | |||||||
Other comprehensive income (loss) | 3.0 | (2.9) | (10.4) | (16.7) | ||||
Ending balance | (23.6) | (23.6) | ||||||
AOCI Attributable to Parent | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Beginning balance | (979.0) | (979.0) | ||||||
Other comprehensive income (loss) before reclassifications | (46.2) | |||||||
Amounts reclassified from accumulated other comprehensive loss to net income | 16.1 | |||||||
Other comprehensive income (loss) | 52.7 | $ 34.2 | $ (117.0) | $ (31.7) | $ 7.0 | $ 1.9 | (30.1) | $ (22.8) |
Ending balance | $ (1,009.1) | $ (1,009.1) |
Fair value of financial instruments (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
Mar. 31, 2019
derivative_instrument
|
Mar. 31, 2016
derivative_instrument
|
|
Debt Instrument [Line Items] | |||||||
Other operating income (expense) | $ 9.8 | $ 6.5 | $ 18.4 | $ 7.0 | |||
Foreign currency transaction gains (losses) | (5.3) | (10.4) | |||||
Interest expense | (27.1) | (22.9) | (70.3) | (68.6) | |||
Not Designated as Hedging Instrument | Foreign Exchange Contract | |||||||
Debt Instrument [Line Items] | |||||||
Notional value | 282.0 | $ 282.0 | |||||
Weighted average maturity | 1 month | ||||||
Not Designated as Hedging Instrument | Foreign Exchange Contract | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of foreign currency contract, net | 0.7 | $ 0.7 | $ 0.6 | ||||
Designated as Hedging Instrument | Currency Swap | |||||||
Debt Instrument [Line Items] | |||||||
Notional value | 104.0 | $ 104.0 | |||||
Weighted average maturity | 2 years | ||||||
Foreign currency derivative instrument gains (losses) | 0.3 | 7.6 | $ 29.1 | 6.3 | |||
Other operating income (expense) | (0.8) | (8.9) | (30.6) | (10.3) | |||
Foreign currency transaction gains (losses) | (0.8) | (8.9) | (30.6) | (10.3) | |||
Interest expense | (0.5) | (1.3) | (1.5) | (4.0) | |||
Designated as Hedging Instrument | Currency Swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of contract, asset position | 30.9 | 30.9 | 2.1 | ||||
Designated as Hedging Instrument | Interest Rate Swap | |||||||
Debt Instrument [Line Items] | |||||||
Notional value | 40.0 | $ 40.0 | |||||
Weighted average maturity | 3 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 | 400.0 | $ 400.0 | |||||
Weighted average maturity | 1 year 8 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] | |||||||
Interest expense | (2.3) | $ (5.2) | |||||
Fair value of swap, net | 31.8 | 31.8 | 15.0 | ||||
Prepaid expenses and other | Not Designated as Hedging Instrument | Foreign Exchange Contract | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of foreign currency contract, net | 0.2 | 0.2 | 0.8 | ||||
Prepaid expenses and other | Designated as Hedging Instrument | Currency Swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of contract, asset position | 4.6 | 4.6 | |||||
Prepaid expenses and other | Designated as Hedging Instrument | Interest Rate Swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of swap, net | 0.2 | ||||||
Accrued liabilities | Not Designated as Hedging Instrument | Foreign Exchange Contract | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of foreign currency contract, net | 0.9 | 0.9 | 0.2 | ||||
Accrued liabilities | Designated as Hedging Instrument | Currency Swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of contract, liability position | 2.8 | ||||||
Accrued liabilities | Designated as Hedging Instrument | Interest Rate Swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of swap, net | 0.2 | 0.2 | |||||
Accrued liabilities | Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of swap, liability position | 9.6 | 9.6 | 3.6 | ||||
Other assets | Designated as Hedging Instrument | Currency Swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of contract, asset position | 26.3 | 26.3 | 4.9 | ||||
Other liabilities | Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of swap, liability position | 22.2 | 22.2 | 11.4 | ||||
Six hundred million senior unsecured notes | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | 600.0 | 600.0 | 600.0 | ||||
Six hundred million senior unsecured notes | Level 3 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value | 611.7 | 611.7 | 624.7 | ||||
Four hundred million senior unsecured notes | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | 400.0 | 400.0 | 0.0 | ||||
Four hundred million senior unsecured notes | Level 3 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value | 410.5 | 410.5 | $ 0.0 | ||||
Other operating income (expense) | Not Designated as Hedging Instrument | Foreign Exchange Contract | |||||||
Debt Instrument [Line Items] | |||||||
Foreign currency derivative instrument not designated as hedging gains (losses) | (3.4) | 5.8 | 0.5 | 8.3 | |||
Interest and other nonoperating expense | Not Designated as Hedging Instrument | Foreign Exchange Contract | |||||||
Debt Instrument [Line Items] | |||||||
Foreign currency derivative instrument not designated as hedging gains (losses) | $ (0.5) | $ 0.0 | $ (8.6) | $ 0.0 |
Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 13.3 | $ 14.3 |
Long-term Debt Types [Abstract] | ||
Total long-term debt | 2,514.3 | 1,629.3 |
Total Debt | 2,527.6 | 1,643.6 |
Long-term Debt by Current and Noncurrent [Abstract] | ||
Current liabilities | 120.6 | 88.8 |
Noncurrent liabilities | 2,407.0 | 1,554.8 |
Term Loan A | Senior Secured Credit Facility - Amended II | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 1,309.4 | |
Other Disclosures [Abstract] | ||
Debt issue costs | 5.9 | |
Term Loan A | Senior Secured Credit Facility - Amended | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 767.0 | |
Other Disclosures [Abstract] | ||
Debt issue costs | 3.0 | |
Senior unsecured notes | Six hundred million senior unsecured notes | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 986.9 | 592.9 |
Other Disclosures [Abstract] | ||
Debt issue costs | 13.1 | 7.1 |
Revolving Credit Facility | ||
Long-term Debt Types [Abstract] | ||
Debt | 62.1 | 115.0 |
Other Non-US Dollar-denominated Facilities | ||
Long-term Debt Types [Abstract] | ||
Debt | 9.7 | 4.9 |
Financing leases | ||
Long-term Debt Types [Abstract] | ||
Financing leases | 146.2 | 149.5 |
Restricted Cash Borrowings | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 0.0 | 10.3 |
Other | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 13.3 | $ 4.0 |
Debt - Narrative (Details) $ in Millions |
1 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 22, 2020
USD ($)
|
Feb. 08, 2019
USD ($)
|
Oct. 31, 2017
USD ($)
|
Sep. 30, 2020
USD ($)
facility
|
Apr. 01, 2020
USD ($)
|
|
Senior Secured Credit Facility - Amended | |||||
Debt Instrument [Line Items] | |||||
Commitment Fee | 0.30% | ||||
Letter of Credit | Three Committed Letter of Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Available capacity amount | $ 11 | ||||
Number of term loan facilities | facility | 3 | ||||
Amount available | $ 58 | ||||
Undrawn letters of credit | 47 | ||||
Letter of Credit | Ten Million Committed Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Borrowing Capacity | 10 | ||||
Letter of Credit | Thirty Two Million Committed Letter Of Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Borrowing Capacity | 32 | ||||
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 | 0.35% | ||||
Term Loan A | Senior Secured Credit Facility - Amended II | |||||
Debt Instrument [Line Items] | |||||
Debt, aggregate principal amount increase | $ 590 | ||||
Debt, aggregate principal amount | $ 1,390 | ||||
Term Loan A | Senior Secured Credit Facility - Amended | |||||
Debt Instrument [Line Items] | |||||
Debt, aggregate principal amount | $ 760 | ||||
Quarterly principal payment, percentage | 1.25% | ||||
Revolving Credit Facility | Senior Secured Credit Facility - Amended II | |||||
Debt Instrument [Line Items] | |||||
Net first lien secured debt leverage ratio maximum | 4.25 | ||||
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 | $ 938 | ||||
Senior unsecured notes | Four hundred million senior unsecured notes | |||||
Debt Instrument [Line Items] | |||||
Debt, aggregate principal amount | $ 400 | ||||
Debt maturity period | 5 years | ||||
Interest Rate Percentage | 5.50% | ||||
Senior unsecured notes | Six hundred million senior unsecured notes | |||||
Debt Instrument [Line Items] | |||||
Debt, aggregate principal amount | $ 600 | ||||
Debt maturity period | 10 years | ||||
Interest Rate Percentage | 4.625% | ||||
LIBOR | Senior Secured Credit Facility - Amended | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 2.00% | ||||
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 | 2.50% | ||||
Base Rate | Senior Secured Credit Facility - Amended | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 1.00% | ||||
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 | 1.50% |
Credit losses (Details) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2020
USD ($)
country
|
Jan. 01, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Valuation Allowance [Line Items] | |||
Number of Countries in which Entity Operates | country | 100 | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for doubtful accounts, beginning balance | $ 30.2 | ||
Retained earnings | 389.7 | $ 457.4 | |
Provision for uncollectible accounts receivable(a) | 11.2 | ||
Write-offs less recoveries | (3.9) | ||
Foreign currency exchange effects | (0.3) | ||
Allowance for doubtful accounts, ending balance | 39.5 | ||
Internal Loss AR Rebuild | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Provision for uncollectible accounts receivable(a) | 9.6 | ||
Allowance for doubtful accounts, ending balance | $ 18.2 | ||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Retained earnings | $ 2.3 |
Share-based compensation plans - Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | $ 8.7 | $ 9.8 | $ 21.7 | $ 35.9 |
Cash based awards | 0.4 | 0.0 | 0.8 | 0.0 |
Income tax benefit | (1.9) | (2.3) | (4.7) | (8.3) |
Share-based payment expense, net of tax | 6.8 | 7.5 | 17.0 | 27.6 |
Performance Shares Units PSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | 5.5 | 7.0 | 12.5 | 21.6 |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | 1.5 | 1.4 | 4.5 | 5.3 |
Deferred Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | 0.3 | 0.3 | 0.9 | 0.9 |
Performance-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | 0.5 | 0.8 | 1.7 | 7.3 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | $ 0.5 | $ 0.3 | $ 1.3 | $ 0.8 |
Share-based compensation plans - Stock activity - RSU, PSU, DSU (Details) - $ / shares |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Restricted Stock Units | ||
Shares (in thousands) | ||
Nonvested, beginning balance, shares | 172,700 | |
Granted, shares | 93,200 | |
Forfeited, shares | (11,300) | |
Conversion to cash settled awards, shares | (1,300) | |
Vested, shares | (84,900) | |
Nonvested, ending balance, shares | 168,400 | 172,700 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested, beginning balance (dollars per share) | $ 71.87 | |
Granted (dollars per share) | 71.78 | |
Forfeited (dollars per share) | 78.81 | |
Converted to cash settled awards (dollars per share) | 72.80 | |
Vested (dollars per share) | 67.41 | |
Nonvested, ending balance (dollars per share) | $ 73.60 | $ 71.87 |
Performance Shares Units PSU | ||
Shares (in thousands) | ||
Nonvested, beginning balance, shares | 564,200 | |
Granted, shares | 248,400 | |
Forfeited, shares | (22,000.0) | |
Conversion to cash settled awards, shares | (4,600) | |
Vested, shares | (204,300) | |
Nonvested, ending balance, shares | 581,700 | 564,200 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested, beginning balance (dollars per share) | $ 70.10 | |
Granted (dollars per share) | 83.68 | |
Forfeited (dollars per share) | 76.23 | |
Converted to cash settled awards (dollars per share) | 65.42 | |
Vested (dollars per share) | 56.72 | |
Nonvested, ending balance (dollars per share) | $ 80.40 | $ 70.10 |
Actual shares earned and distributed (shares) | 394,000.0 | |
Target shares (shares) | 204,300 | |
Deferred Stock Units | ||
Shares (in thousands) | ||
Nonvested, beginning balance, shares | 12,100 | |
Granted, shares | 21,600 | |
Vested, shares | (12,100) | |
Nonvested, ending balance, shares | 21,600 | 12,100 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested, beginning balance (dollars per share) | $ 79.69 | |
Granted (dollars per share) | 40.46 | |
Vested (dollars per share) | 79.69 | |
Nonvested, ending balance (dollars per share) | $ 40.46 | $ 79.69 |
Share-based compensation plans - Option Activity (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
$ / shares
shares
| |
Performance-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, shares | shares | 1,191,100 |
Granted, shares | shares | 0 |
Forfeited, shares | shares | 0 |
Exercised, shares | shares | 0 |
Ending balance, shares | shares | 1,191,100 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (dollars per share) | $ / shares | $ 11.52 |
Granted (dollars per share) | $ / shares | 0 |
Forfeited (dollars per share) | $ / shares | 0 |
Exercised (dollars per share) | $ / shares | 0 |
Ending balance (dollars per share) | $ / shares | $ 11.52 |
Time Based Vesting Option | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, shares | shares | 127,000.0 |
Granted, shares | shares | 80,800 |
Forfeited, shares | shares | 0 |
Exercised, shares | shares | 0 |
Ending balance, shares | shares | 207,800 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (dollars per share) | $ / shares | $ 21.56 |
Granted (dollars per share) | $ / shares | 21.10 |
Forfeited (dollars per share) | $ / shares | 0 |
Exercised (dollars per share) | $ / shares | 0 |
Ending balance (dollars per share) | $ / shares | $ 21.38 |
Capital Stock (Details) - USD ($) |
1 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Aug. 26, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
Oct. 19, 2020 |
Feb. 06, 2020 |
May 08, 2017 |
|
Subsequent Event [Line Items] | ||||||
Shares of common stock authorized (in shares) | 100,000,000 | 100,000,000.0 | ||||
Shares issued and outstanding (in shares) | 49,400,000 | 50,100,000 | ||||
Maximum shares allowed for issuance (in shares) | 2,000,000.0 | |||||
Par value (in dollars per share) | $ 10 | |||||
ASR August 2020 | ||||||
Subsequent Event [Line Items] | ||||||
Stock repurchased and retired during period (in shares) | 849,978 | |||||
Accelerated share repurchased payment | $ 50,000,000 | |||||
ASR, initial price per share (in dollars per share) | $ 58.83 | |||||
ASR September 2020 | ||||||
Subsequent Event [Line Items] | ||||||
Stock repurchased and retired during period (in shares) | 246,676 | |||||
ASR, final price per share (in dollars per share) | $ 45.59 | |||||
250 Million Share Repurchase Program | ||||||
Subsequent Event [Line Items] | ||||||
Stock repurchase program amount | $ 250,000,000 | |||||
Stock repurchase program remaining amount | $ 200,000,000 | |||||
200 Million Share Repurchase Program | ||||||
Subsequent Event [Line Items] | ||||||
Stock repurchase program amount | $ 200,000,000 | |||||
Stock repurchased and retired during period (in shares) | 1,300,000 | |||||
Stock repurchase program amount used | $ 94,000,000 | |||||
Average price per share (in dollars per share) | $ 69.35 | |||||
Stock repurchase program remaining amount | $ 106,000,000 | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Dividends declared (in dollars per share) | $ 0.15 |
Capital Stock - Shares Used To Calculate Earnings (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Equity [Abstract] | ||||
Basic (shares) | 50.4 | 50.3 | 50.6 | 50.2 |
Effect of dilutive stock options and awards (shares) | 0.0 | 0.8 | 0.0 | 0.8 |
Diluted (shares) | 50.4 | 51.1 | 50.6 | 51.0 |
Antidilutive stock options and awards excluded from denominator (shares) | 1.5 | 0.1 | 1.5 | 0.1 |
Deferred compensation common stock unit (shares) | 0.3 | 0.3 | 0.3 | 0.3 |
Supplemental cash flow information (Details) - USD ($) $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Interest | $ 54.1 | $ 56.0 | ||
Income taxes, net | 42.9 | 33.4 | ||
Argentina conversion losses | (5.3) | (10.4) | ||
Financing Leases | 24.3 | 46.2 | ||
Restricted cash | 203.0 | $ 158.0 | ||
Cash and cash equivalents | 592.4 | 311.0 | ||
Cash, Cash Equivalents, and Restricted Cash | 795.4 | $ 426.2 | 469.0 | $ 479.5 |
Cash from Short Term Borrowings | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | 10.3 | |||
Cash Held From Customers | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | 93.3 | 100.3 | ||
Deposits liability | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | 102.3 | $ 47.4 | ||
Revolving Credit Facility | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | $ 5.0 |
Reorganization and Restructuring (Details) - Other Restructurings $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
|
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, beginning balance | $ 7.0 | |
Expense | 56.4 | |
Payments and utilization | (49.6) | |
Accrual adjustment | (6.1) | |
Foreign currency exchange effects | (0.6) | |
Restructuring Reserve, ending balance | 7.1 | |
Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 9.0 | |
Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 11.0 | |
Severance Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 20.5 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, beginning balance | 7.0 | |
Expense | 51.7 | |
Payments and utilization | (44.9) | |
Accrual adjustment | (6.1) | |
Foreign currency exchange effects | (0.6) | |
Restructuring Reserve, ending balance | 7.1 | |
Severance Costs | Operating profit | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 49.7 | |
Severance Costs | Interest and other nonoperating expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.6 | |
Other Restructuring | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, beginning balance | 0.0 | |
Expense | 4.7 | |
Payments and utilization | (4.7) | |
Foreign currency exchange effects | 0.0 | |
Restructuring Reserve, ending balance | $ 0.0 |
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