~~0000078890 us-gaap:NoncontrollingInterestMember 2019-03-31~~

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, ~~2019~~2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number 001-09148



	THE BRINK’S COMPANY
	(Exact name of registrant as specified in its charter)



Virginia		54-1317776
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

1801 Bayberry Court, Richmond, Virginia 23226-8100

(Address of principal executive offices) (Zip Code)

(804) 289-9600

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.00 per share	BCO	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

(Check one): Large Accelerated Filer ☒ Accelerated Filer ☐ Non-Accelerated Filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of July ~~22, 2019, 49,999,493~~24, 2020, 50,520,662 shares of $1 par value common stock were outstanding.

Part I - Financial Information

Item 1. Financial Statements

THE BRINK’S COMPANY

and subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)


(In millions, except for per share amounts)	June 30, 2019			December 31, 2018		June 30, 2020			December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	304.9		343.4		$	531.3		311.0
Restricted cash	105.8			136.1		171.5			158.0
Accounts receivable, net	678.3			599.5		695.0			635.6
Prepaid expenses and other	155.6			127.5		277.3			128.0
Total current assets	1,244.6			1,206.5		1,675.1			1,232.6

Right-of-use assets, net	280.8			—		329.8			270.3
Property and equipment, net	712.7			699.4		813.6			763.3
Goodwill	782.5			678.6		1,114.0			784.6
Other intangibles	279.5			228.9		406.7			272.5
Deferred income taxes	239.0			236.5		244.1			273.5
Other	193.3			186.1		187.9			167.0

Total assets	$	3,732.4		3,236.0		$	4,771.2		3,763.8

LIABILITIES AND EQUITY

Current liabilities:
Short-term borrowings	$	29.2		28.9		$	12.1		14.3
Current maturities of long-term debt	72.6			53.5		108.7			74.5
Accounts payable	165.7			174.6		174.4			184.5
Accrued liabilities	561.4			502.1		690.1			628.4
Restricted cash held for customers	59.9			90.3		87.4			100.3
Total current liabilities	888.8			849.4		1,072.7			1,002.0

Long-term debt	1,657.7			1,471.6		2,362.6			1,554.8
Accrued pension costs	189.7			196.9		259.7			228.9
Retirement benefits other than pensions	365.5			366.1		339.8			347.8
Lease liabilities	229.9			—		268.9			218.4
Deferred income taxes	16.5			16.7		44.8			21.2
Other	174.6			168.7		231.8			183.1
Total liabilities	3,522.7			3,069.4		4,580.3			3,556.2

Commitments and contingent liabilities (notes 4, 8 and 14)

Equity:
The Brink's Company ("Brink's") shareholders:
Common stock, par value $1 per share:
Shares authorized: 100.0
Shares issued and outstanding: 2019 - 50.0; 2018 - 49.7	50.0			49.7
Shares issued and outstanding: 2020 - 50.5; 2019 - 50.1						50.5			50.1
Capital in excess of par value	647.7			628.2		667.4			663.3
Retained earnings	469.7			429.1		455.2			457.4
Accumulated other comprehensive loss	(973.2		)	(953.3	)	(1,061.8		)	(979.0	)
Brink’s shareholders	194.2			153.7		111.3			191.8

Noncontrolling interests	15.5			12.9		79.6			15.8

Total equity	209.7			166.6		190.9			207.6

Total liabilities and equity	$	3,732.4		3,236.0		$	4,771.2		3,763.8

See accompanying notes to condensed consolidated financial statements.

THE BRINK’S COMPANY

and subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)


	Three Months Ended June 30,					Six Months Ended June 30,					Three Months Ended June 30,					Six Months Ended June 30,
(In millions, except for per share amounts)	2019			2018		2019			2018		2020			2019		2020			2019

Revenues	$	914.0		849.7		$	1,819.0		1,728.8		$	826.0		914.0		$	1,698.8		1,819.0

Costs and expenses:
Cost of revenues	708.5			666.8		1,411.2			1,360.4		683.9			708.5		1,377.3			1,411.2
Selling, general and administrative expenses	154.6			119.9		296.3			243.0		139.6			154.6		287.7			296.3
Total costs and expenses	863.1			786.7		1,707.5			1,603.4		823.5			863.1		1,665.0			1,707.5
Other operating income (expense)	1.7			(1.3	)	(0.5		)	1.1		(3.5		)	1.7		(8.6		)	(0.5	)

Operating profit	52.6			61.7		111.0			126.5
Operating profit (loss)											(1.0		)	52.6		25.2			111.0

Interest expense	(22.7		)	(15.8	)	(45.7		)	(30.8	)	(23.2		)	(22.7	)	(43.2		)	(45.7	)
Loss on deconsolidation of Venezuela operations	—			(126.7	)	—			(126.7	)
Interest and other nonoperating income (expense)	(3.1		)	(8.1	)	(14.3		)	(21.2	)	(3.0		)	(3.1	)	(18.6		)	(14.3	)
Income (loss) from continuing operations before tax	26.8			(88.9	)	51.0			(52.2	)	(27.2		)	26.8		(36.6		)	51.0
Provision for income taxes	12.7			18.6		22.4			30.0
Provision (benefit) for income taxes											(43.2		)	12.7		(55.4		)	22.4

Income (loss) from continuing operations	14.1			(107.5	)	28.6			(82.2	)
Income from continuing operations											16.0			14.1		18.8			28.6

Income (loss) from discontinued operations, net of tax	(0.1		)	(0.1	)	(0.1		)	0.1
Loss from discontinued operations, net of tax											(0.8		)	(0.1	)	(0.8		)	(0.1	)

Net income (loss)	14.0			(107.6	)	28.5			(82.1	)
Net income											15.2			14.0		18.0			28.5
Less net income attributable to noncontrolling interests	1.5			0.3		2.3			3.5		2.3			1.5		3.3			2.3

Net income (loss) attributable to Brink’s	12.5			(107.9	)	26.2			(85.6	)
Net income attributable to Brink’s											12.9			12.5		14.7			26.2

Amounts attributable to Brink’s
Continuing operations	12.6			(107.8	)	26.3			(85.7	)	13.7			12.6		15.5			26.3
Discontinued operations	(0.1		)	(0.1	)	(0.1		)	0.1		(0.8		)	(0.1	)	(0.8		)	(0.1	)

Net income (loss) attributable to Brink’s	$	12.5		(107.9	)	$	26.2		(85.6	)
Net income attributable to Brink’s											$	12.9		12.5		$	14.7		26.2

Income (loss) per share attributable to Brink’s common shareholders^(a):
Basic:
Continuing operations	$	0.25		(2.11	)	$	0.53		(1.68	)	$	0.27		0.25		$	0.31		0.53
Discontinued operations	—			—		—			—		(0.02		)	—		(0.02		)	—
Net income (loss)	$	0.25		(2.11	)	$	0.52		(1.68	)
Net income											$	0.25		0.25		$	0.29		0.52

Diluted:
Continuing operations	$	0.25		(2.11	)	$	0.52		(1.68	)	$	0.27		0.25		$	0.30		0.52
Discontinued operations	—			—		—			—		(0.01		)	—		(0.02		)	—
Net income (loss)	$	0.25		(2.11	)	$	0.51		(1.68	)
Net income											$	0.25		0.25		$	0.29		0.51

Weighted-average shares
Basic	50.2			51.2		50.1			51.0		50.8			50.2		50.7			50.1
Diluted	50.9			51.2		50.9			51.0		51.0			50.9		51.2			50.9

Cash dividends paid per common share	$	0.15		0.15		$	0.30		0.30		$	0.15		0.15		$	0.30		0.30

(a) Amounts may not add due to rounding.

See accompanying notes to condensed consolidated financial statements.

THE BRINK’S COMPANY

and subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)


	Three Months Ended June 30,					Six Months Ended June 30,					Three Months Ended June 30,					Six Months Ended June 30,
(In millions)	2019			2018		2019			2018		2020			2019		2020			2019

Net income (loss)	$	14.0		(107.6	)	$	28.5		(82.1	)
Net income											$	15.2		14.0		$	18.0		28.5

Benefit plan adjustments:
Benefit plan actuarial gains	9.0			22.9		20.3			37.7		13.2			9.0		31.8			20.3
Benefit plan prior service credits (costs)	(1.2		)	1.1		(2.5		)	0.3
Benefit plan prior service costs											(1.3		)	(1.2	)	(2.4		)	(2.5	)
Deferred profit sharing	0.1			—		0.1			—		—			0.1		—			0.1
Total benefit plan adjustments	7.9			24.0		17.9			38.0		11.9			7.9		29.4			17.9

Foreign currency translation adjustments	9.1			(31.8	)	9.7			(30.8	)	28.2			9.1		(92.1		)	9.7
Gains (losses) on cash flow hedges	(10.6		)	0.2		(18.5		)	0.6
Losses on cash flow hedges											(2.6		)	(10.6	)	(17.3		)	(18.5	)
Other comprehensive income (loss) before tax	6.4			(7.6	)	9.1			7.8		37.5			6.4		(80.0		)	9.1
Provision (benefit) for income taxes	(0.7		)	3.8		(0.2		)	7.0		2.3			(0.7	)	2.2			(0.2	)

Other comprehensive income (loss)	7.1			(11.4	)	9.3			0.8		35.2			7.1		(82.2		)	9.3

Comprehensive income (loss)	21.1			(119.0	)	37.8			(81.3	)	50.4			21.1		(64.2		)	37.8
Less comprehensive income (loss) attributable to noncontrolling interests	1.6			(0.7	)	2.7			3.6
Less comprehensive income attributable to noncontrolling interests											3.3			1.6		3.9			2.7

Comprehensive income (loss) attributable to Brink's	$	19.5		(118.3	)	$	35.1		(84.9	)	$	47.1		19.5		$	(68.1	)	35.1

See accompanying notes to condensed consolidated financial statements.

THE BRINK’S COMPANY

and subsidiaries

Condensed Consolidated Statements of Equity

(Unaudited)

Six Months ended June 30, 2019
(In millions) Shares
Common
Stock
Capital in Excess of Par Value
Retained
Earnings
AOCI*
Noncontrolling
Interests
Total
Balance as of December 31, 2018 49.7
$ 49.7
628.2
429.1
(953.3 ) 12.9
166.6
Cumulative effect of change in accounting principle^(a)
—
—
—
28.8
(28.8 ) —
—
Net income —
—
—
13.7
—
0.8
14.5
Other comprehensive income —
—
—
—
1.9
0.3
2.2
Shares repurchased —
—
(0.5 ) 0.5
—
—
—
Dividends to:

Brink’s common shareholders ($0.15 per share) —
—
—
(7.4 ) —
—
(7.4 )
Share-based compensation:

Stock awards and options:

Compensation expense —
—
9.4
—
—
—
9.4
Other share-based benefit transactions 0.2
0.2
(6.2 ) —
—
—
(6.0 )
Balance as of March 31, 2019 49.9
$ 49.9
630.9
464.7
(980.2 ) 14.0
179.3
Net income —
—
—
12.5
—
1.5
14.0
Other comprehensive income —
—
—
—
7.0
0.1
7.1
Dividends to:

Brink’s common shareholders ($0.15 per share) —
—
—
(7.5 ) —
—
(7.5 )
Noncontrolling interests —
—
—
—
—
(0.2 ) (0.2 )
Share-based compensation:

Stock awards and options:

Compensation expense —
—
16.7
—
—
—
16.7
Other share-based benefit transactions 0.1
0.1
0.1
—
—
—
0.2
Capital contributions from noncontrolling interest —
—
—
—
—
0.1
0.1
Balance as of June 30, 2019 50.0
$ 50.0
647.7
469.7
(973.2 ) 15.5
209.7



	Six Months ended June 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	50.1	$	50.1	663.3		457.4		(979.0	)	15.8		207.6
Cumulative effect of change in accounting principle^(a)	—	—		—		(1.7	)	—		—		(1.7	)
Net income	—	—		—		1.8		—		1.0		2.8
Other comprehensive loss	—	—		—		—		(117.0	)	(0.4	)	(117.4	)
Dividends to:
Brink’s common shareholders ($0.15 per share)	—	—		—		(7.5	)	—		—		(7.5	)
Noncontrolling interests	—	—		—		—		—		(0.7	)	(0.7	)
Share-based compensation:
Stock awards and options:
Compensation expense	—	—		7.2		—		—		—		7.2
Other share-based benefit transactions	0.4	0.4		(8.6	)	(0.1	)	—		—		(8.3	)
Balance as of March 31, 2020	50.5	$	50.5	661.9		449.9		(1,096.0	)	15.7		82.0
Net income	—	—		—		12.9		—		2.3		15.2
Other comprehensive income	—	—		—		—		34.2		1.0		35.2
Dividends to:
Brink’s common shareholders ($0.15 per share)	—	—		—		(7.6	)	—		—		(7.6	)
Noncontrolling interests	—	—		—		—		—		(7.2	)	(7.2	)
Share-based compensation:
Stock awards and options:
Compensation expense	—	—		5.4		—		—		—		5.4
Other share-based benefit transactions	—	—		0.1		—		—		—		0.1
Acquisitions with noncontrolling interests	—	—		—		—		—		67.8		67.8
Balance as of June 30, 2020	50.5	$	50.5	667.4		455.2		(1,061.8	)	79.6		190.9


(a)	Effective January 1, 2020, we adopted the provisions of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on FinancialInstruments. We recognized a cumulative effect adjustment to January 1, 2020 retained earnings as a result of adopting this standard. See Note 1 for further details.



	Six Months ended June 30, 2019
(In millions)	Shares	Common Stock		Capital in Excess of Par Value		Retained Earnings		AOCI*		Noncontrolling Interests		Total
Balance as of December 31, 2018	49.7	$	49.7	628.2		429.1		(953.3	)	12.9		166.6
Cumulative effect of change in accounting principle^(a)	—	—		—		28.8		(28.8	)	—		—
Net income	—	—		—		13.7		—		0.8		14.5
Other comprehensive income	—	—		—		—		1.9		0.3		2.2
Shares repurchased	—	—		(0.5	)	0.5		—		—		—
Dividends to:
Brink’s common shareholders ($0.15 per share)	—	—		—		(7.4	)	—		—		(7.4	)
Share-based compensation:
Stock awards and options:
Compensation expense	—	—		9.4		—		—		—		9.4
Other share-based benefit transactions	0.2	0.2		(6.2	)	—		—		—		(6.0	)
Balance as of March 31, 2019	49.9	$	49.9	630.9		464.7		(980.2	)	14.0		179.3
Net income (loss)	—	—		—		12.5		—		1.5		14.0
Other comprehensive loss	—	—		—		—		7.0		0.1		7.1
Dividends to:
Brink’s common shareholders ($0.15 per share)	—	—		—		(7.5	)	—		—		(7.5	)
Noncontrolling interests	—	—		—		—		—		(0.2	)	(0.2	)
Share-based compensation:
Stock awards and options:
Compensation expense	—	—		16.7		—		—		—		16.7
Other share-based benefit transactions	0.1	0.1		0.1		—		—		—		0.2
Capital contributions from noncontrolling interest	—	—		—		—		—		0.1		0.1
Balance as of June 30, 2019	50.0	$	50.0	647.7		469.7		(973.2	)	15.5		209.7


(a)	Effective January 1, 2019, we adopted the provisions of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. We recognized a cumulative effect adjustment to January 1, 2019 retained earnings as a result of adopting this standard. See Note 1 for further details.

* Accumulated other comprehensive income (loss)

See accompanying notes to condensed consolidated financial statements.

Six Months ended June 30, 2018
(In millions) Shares
Common
Stock
Capital in Excess of Par Value
Retained
Earnings
AOCI*
Noncontrolling
Interests
Total
Balance as of December 31, 2017 50.5
$ 50.5
628.6
564.9
(926.6 ) 20.8
338.2
Cumulative effect of change in accounting principle^(a)
—
—
—
3.3
(1.1 ) —
2.2
Net income —
—
—
22.3
—
3.2
25.5
Other comprehensive income —
—
—
—
11.1
1.1
12.2
Dividends to:

Brink’s common shareholders ($0.15 per share) —
—
—
(7.6 ) —
—
(7.6 )
Noncontrolling interests —
—
—
—
—
(0.7 ) (0.7 )
Share-based compensation:

Stock awards and options:

Compensation expense —
—
6.8
—
—
—
6.8
Other share-based benefit transactions 0.4
0.4
(10.5 ) —
—
—
(10.1 )
Balance as of March 31, 2018 50.9
$ 50.9
624.9
582.9
(916.6 ) 24.4
366.5
Net income (loss) —
—
—
(107.9 ) —
0.3
(107.6 )
Other comprehensive loss —
—
—
—
(10.4 ) (1.0 ) (11.4 )
Dividends to:

Brink’s common shareholders ($0.15 per share) —
—
—
(7.6 ) —
—
(7.6 )
Noncontrolling interests —
—
—
—
—
(1.2 ) (1.2 )
Share-based compensation:

Stock awards and options:

Compensation expense —
—
5.7
—
—
—
5.7
Consideration from exercise of stock options —
—
0.8
—
—
—
0.8
Other share-based benefit transactions 0.1
0.1
0.2
—
—
—
0.3
Dispositions of noncontrolling interests —
—
—
—
—
(0.4 ) (0.4 )
Balance as of June 30, 2018 51.0
$ 51.0
631.6
467.4
(927.0 ) 22.1
245.1

~~(a)~~

~~Effective January 1, 2018, we adopted the provisions of ASU 2014-09,~~ ~~Revenue From Contracts with Customers, ASU 2016-01,~~ ~~Recognition and Measurement of Financial Assets and Financial Liabilities,~~ ~~and ASU 2016-16,~~ ~~Intra-Entity Transfers of Assets Other Than Inventory.~~ ~~We recognized a cumulative effect adjustment to January 1, 2018 retained earnings as a result of adopting each of these standards. See Note 1 for further details of the impact of each standard.~~

* Accumulated other comprehensive income (loss)

~~See accompanying notes to condensed consolidated financial statements.~~

THE BRINK’S COMPANY

and subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended June 30,					Six Months Ended June 30,
(In millions)	2019			2018		2020			2019
Cash flows from operating activities:
Net income (loss)	$	28.5		(82.1	)
Net income						$	18.0		28.5
Adjustments to reconcile net income to net cash provided by operating activities:
(Income) loss from discontinued operations, net of tax	0.1			(0.1	)
Loss from discontinued operations, net of tax						0.8			0.1
Depreciation and amortization	96.6			77.9		97.1			96.6
Share-based compensation expense	26.1			12.5		12.6			26.1
Deferred income taxes	(1.0		)	(9.5	)	21.9			(1.0	)
Gains on sale of property, equipment and marketable securities	(1.1		)	(2.0	)	(3.3		)	(1.1	)
Gain on business dispositions	—			(10.3	)
Loss on deconsolidation of Venezuela operations	—			126.7
Gains on business dispositions						(4.7		)	—
Impairment losses	1.6			2.7		4.9			1.6
Retirement benefit funding less than expense:
Pension	1.9			5.1		6.1			1.9
Other than pension	7.1			8.5		4.7			7.1
Remeasurement losses (gains) due to Argentina and Venezuela currency devaluations	3.4			(2.2	)
Remeasurement losses due to Argentina currency devaluations						3.5			3.4
Other operating	(4.7		)	4.8		16.2			(4.7	)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable and income taxes receivable	(56.3		)	(66.7	)	(87.1		)	(56.3	)
Accounts payable, income taxes payable and accrued liabilities	(29.8		)	42.0		(91.3		)	(29.8	)
Restricted cash held for customers	(29.5		)	4.4		5.3			(29.5	)
Customer obligations	7.0			5.7		(11.3		)	7.0
Prepaid and other current assets	(16.3		)	(15.8	)	(12.6		)	(16.3	)
Other	(9.7		)	7.5		(40.8		)	(9.7	)
Net cash provided by operating activities	23.9			109.1
Net cash provided (used) by operating activities						(60.0		)	23.9
Cash flows from investing activities:
Capital expenditures	(73.1		)	(73.3	)	(53.9		)	(73.1	)
Acquisitions, net of cash acquired	(167.0		)	—		(408.4		)	(167.0	)
Dispositions, net of cash disposed	—			9.6		(3.1		)	—
Marketable securities:
Purchases	(2.2		)	(50.1	)	(1.2		)	(2.2	)
Sales	0.8			5.5		0.6			0.8
Cash proceeds from sale of property and equipment	1.9			1.8		1.4			1.9
Other	(3.1		)	(0.9	)
Acquisition of customer contracts						(5.2		)	(3.1	)
Net cash used by investing activities	(242.7		)	(107.4	)	(469.8		)	(242.7	)
Cash flows from financing activities:
Borrowings (repayments) of debt:
Short-term borrowings	0.1			10.5		(1.6		)	0.1
Cash supply chain customer debt	—			(11.7	)
Long-term revolving credit facilities:
Borrowings	525.9			—		736.7			525.9
Repayments	(656.5		)	—		(855.6		)	(656.5	)
Other long-term debt:
Borrowings	334.9			1.8		994.3			334.9
Repayments	(25.4		)	(27.7	)	(44.6		)	(25.4	)
Payment of acquisition-related obligation	(1.5		)	—		(6.8		)	(1.5	)
Debt financing costs	(4.0		)	—		(11.5		)	(4.0	)
Dividends to:
Shareholders of Brink’s	(14.9		)	(15.2	)	(15.1		)	(14.9	)
Noncontrolling interests in subsidiaries	(0.2		)	(1.9	)	(7.9		)	(0.2	)
Proceeds from exercise of stock options	—			0.8
Tax withholdings associated with share-based compensation	(7.2		)	(11.3	)	(9.3		)	(7.2	)
Other	(1.7		)	0.2		0.8			(1.7	)
Net cash provided (used) by financing activities	149.5			(54.5	)
Net cash provided by financing activities						779.4			149.5
Effect of exchange rate changes on cash	0.5			(24.0	)	(15.8		)	0.5
Cash, cash equivalents and restricted cash:
Decrease	(68.8		)	(76.8	)
Increase (decrease)						233.8			(68.8	)
Balance at beginning of period	479.5			726.9		469.0			479.5
Balance at end of period	$	410.7		650.1		$	702.8		410.7

See accompanying notes to condensed consolidated financial statements.

THE BRINK’S COMPANY

and subsidiaries

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 - Basis of presentation

The Brink’s Company (along with its subsidiaries, “Brink’s” or “we”) has ~~three~~3 operating segments:

North America

South America

Rest of World

Our unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and applicable quarterly reporting regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes in our Annual Report on Form 10-K for the year ended December 31, ~~2018.~~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, ~~and~~allowance for doubtful accounts, deferred tax ~~assets.~~assets, purchase price allocations and foreign currency translation. Our 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 began to align 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 significant uncertainty with respect to the magnitude of 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 six months of 2020 and 6% of our consolidated revenues for the first six months of ~~2019 and 8% of our consolidated revenues for the first six months of 2018.~~ 2019.

The operating environment in Argentina continues to present business challenges, including ongoing devaluation of the Argentine peso and significant inflation. In the first six months of ~~2019~~2020 and ~~2018,~~2019, the Argentine peso declined approximately 15% (from 59.9 to 70.4 pesos to the U.S. dollar) and approximately 12% (from 37.6 to 42.6 pesos to the U.S. dollar) ~~and approximately 36% (from 18.6 to 28.9 pesos to the U.S. dollar)~~,

respectively. For the year ended December 31, ~~2018,~~2019, the Argentine peso declined approximately ~~50%~~37% (from ~~18.6~~37.6 to ~~37.6~~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 ~~second half~~first six months of ~~2018,~~2020, we recognized a ~~$6.2~~$3.5 million pretax remeasurement loss. In the first six months of 2019, we recognized a $3.4 million pretax remeasurement loss.

At June 30, ~~2019,~~2020, Argentina's economy remains highly inflationary for accounting purposes.

At June 30, ~~2019,~~2020, we had net monetary assets denominated in Argentine pesos of ~~$28.7~~$25.0 million (including cash of ~~$18.6~~$21.1 million). At June 30, ~~2019,~~2020, we had net nonmonetary assets of ~~$149.5~~$149.2 million (including $99.8 million of goodwill). At June 30, ~~2019,~~2020, we had no0 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.

We have in the past and may elect in the future to utilize other market mechanisms to convert Argentine pesos into U.S. dollars. Conversions under these other market mechanisms have settled at rates that are generally less favorable than the rates at which we remeasured the financial statements of Brink's Argentina. We did not have any such conversions losses in the six months ended June 30, 2020.

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

~~Deconsolidation~~. Our Venezuelan operations offer transportation and route-based logistics management services for cash and valuables throughout Venezuela. Political and economic conditions in Venezuela, the impact of local laws on our business as well as the currency exchange control regulations and continued reductions in access to U.S. dollars through official currency exchange mechanisms, resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar and the U.S. dollar. These conditions restricted the ability of our Venezuelan operations to pay dividends and royalties. It also restricted the ability for our Venezuela business to settle other operating liabilities which significantly increased the risk that this business will no longer be self-sustaining.

~~The currency~~Currency exchange regulations, combined with other government regulations, such as price controls and strict labor laws, significantly ~~limited~~limit our ability to make and execute operational decisions at our Venezuelan subsidiaries. ~~With the May 2018 re-election of the President in Venezuela for an additional six-year term, we expect these conditions to continue for the foreseeable future.~~

As a result of ~~the~~these conditions, ~~described above,~~ we ~~concluded that, effective June 30, 2018, we did~~do not meet the accounting criteria for control over our Venezuelan operations and, as a result, we ~~began reporting~~report the results of our investment in our Venezuelan subsidiaries using the cost method of ~~accounting. This change resulted in a pretax charge~~accounting, the basis of ~~$127 million in~~which approximates zero. Prior to the second quarter of 2018. The pretax charge included $106 million of foreign currency translation losses and benefit plan adjustments previously included in accumulated other comprehensive loss. It also included the derecognitionimposition of the ~~carrying amounts of our Venezuelan operations’ assets and liabilities, including $32 million of assets and $11 million of liabilities, that were no longer reported~~U.S. government sanctions in our condensed consolidated balance sheet as of June 30, 2018. We determined the fair value of our investment in, and receivables from, our Venezuelan subsidiaries to be insignificant based on our expectations of dividend payments and settlements of such receivables in future periods. For reporting periods beginning after June 30, 2018, we have not included the operating results of our Venezuela operations. In 2019, ~~and 2018,~~ we provided immaterial amounts of financial support to our Venezuela operations. We may incur losses resulting from our Venezuelan business to the extent that we provide U.S. dollars or make future investments in our Venezuelan subsidiaries, including any additional investments made directly in our Venezuelan subsidiaries or additional costs incurred by us to address compliance with recent sanctions and other regulatory requirements imposed by the U.S. government that restrict our ability to conduct business in Venezuela.

We continue to monitor the situation in Venezuela, including the imposition of sanctions by the U.S. government targeting Venezuela.

~~Highly Inflationary Accounting. The economy~~Internal loss

A former non-management employee in ~~Venezuela has~~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 six months of 2020, we incurred an additional $0.2 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 ~~significant inflation~~never been recorded in the ~~last several years. Prior~~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 ~~deconsolidation as~~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 ~~June 30, 2018, we reported our Venezuelan results using our accounting policy for subsidiaries operating~~$13.7 million in ~~highly inflationary economies. Results from our Venezuelan operations prior to~~ the ~~June 30, 2018 deconsolidation are included in items not allocated to segments and are excluded from the operating segments.~~third quarter of 2019.

~~Remeasurement rates during 2018. Prior to deconsolidation as~~The estimate of ~~June 30, 2018,~~the allowance for doubtful accounts was adjusted in the fourth quarter of 2019 for an additional $6.4 million and again in the first six months of 2018, the rate declined approximately 97%. In the first six months of 2018, we recognized a $2.2 million pretax remeasurement gain. The after-tax effect of this gain attributable to noncontrolling interest was $2.02020 for an additional $10.6 million.

~~New Accounting Standards~~

~~In May 2014, the FASB issued ASU 2014-09,~~ ~~Revenue From Contracts with Customers.~~ ~~Under this standard, an entity recognizes an amount of revenue to which it expects to~~ This estimate will be entitled when the transfer of goods or services to customers occurs. The standard requires expanded disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted this standard effective January 1, 2018 using the modified retrospective method and recognized a cumulative-effect adjustment increasing retained earnings by $1.5 million.

~~The FASB issued ASU 2016-01,~~ ~~Recognition and Measurement of Financial Assets and Financial Liabilities,~~adjusted in ~~January 2016. This new guidance changes the accounting~~future periods, if needed, as assumptions related to the ~~classification~~collectability of these accounts receivable change. At June 30, 2020, we have recorded a $21.6 million allowance on $25.0 million of accounts receivable, or 86%. We have defined accounts receivable impacted by the embezzlement as accounts receivable recorded as of and ~~measurement~~prior to the third quarter of ~~certain equity investments. Equity investments~~2019. Due to the unusual nature of this internal loss and the related errors in the subledger data, along with ~~readily determinable fair values must be measured at fair value. All changes in fair value will be recognized in~~the fact that management has excluded these amounts when evaluating internal performance, we have excluded these net ~~income as opposed to other comprehensive income. We adopted ASU 2016-01 effective January 1, 2018 and recognized a cumulative-effect adjustment increasing retained earnings by $1.1 million.~~charges from segment results.

InGoodwill

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 ~~2016,~~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 ~~FASB issued ASU 2016-16,~~ ~~Intra-Entity Transfers~~COVID-19 pandemic, impairment indicators were reviewed as of ~~Assets Other Than Inventory~~, which changes the timing of when certain intercompany transactions are recognized within the provision for income taxes. We adopted ASU 2016-16 effective January 1, 2018 using the modified retrospective methodJune 30, 2020 and we ~~recognized~~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 ~~cumulative-effect adjustment increasing retained earnings~~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 ~~$0.7 million.~~a range of 21% to 199%. For the France reporting unit, although fair value exceeded carrying value by only 8%, goodwill related to the France reporting unit was not impaired. We assessed whether there were new events or circumstances as of the quarter end date of June 30, 2020 to roll forward the interim test conclusion and determined there was no impairment at that date. The France reporting unit had $86.7 million of goodwill at June 30, 2020.

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 February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the recognition of right-of-use assets and lease liabilities by lessees for certain leases classified as operating leases and also requires expanded disclosures regarding leasing activities. The accounting for ~~capital~~financing leases (previously "capital leases") remains substantially unchanged. We ~~have~~ adopted the standard effective January 1, 2019 and ~~have~~ elected to adopt the new standard at the adoption date through a cumulative-effect adjustment to the opening balance of retained earnings. Under this approach, we will continue to report comparative periods under ASC 840.

We ~~have~~ elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, ~~allows~~allowed us to carry forward the historical lease classification. We also made an accounting policy election to exclude leases with an initial term of 12 months or less from the condensed consolidated balance sheet. We ~~will~~ recognize those lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. As part of this adoption, we ~~have~~ implemented internal controls and key system functionality to enable the preparation of financial information.

The adoption of the standard resulted in recording right-of-use assets of $310.1 million and lease liabilities of $320.3 million as of January 1, 2019. The right-of-use assets are lower than the lease liabilities as existing deferred rent and lease incentive liabilities were recorded ~~against~~as a reduction of the right-of-use assets at adoption in accordance with the standard. The standard did not affect our condensed consolidated statements of operations or our condensed consolidated statements of cash ~~flows.~~flows and did not result in a cumulative-effect adjustment to the opening balance of retained earnings. The standard had no impact on our debt-covenant compliance under our current agreements.

~~In January 2017, the FASB issued ASU 2017-04,~~ ~~Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment~~, which eliminates the requirement that an entity perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. We early adopted this ASU effective January 1, 2019. The early adoption did not have any impact on our condensed consolidated financial statements.

~~In August 2017, the FASB issued ASU 2017-12,~~ ~~Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities~~, which amends and simplifies the application of hedge accounting guidance to better portray the economic results of risk management activities in the financial statements. The guidance expands the ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, and eases certain hedge effectiveness assessment requirements. We adopted the standard effective January 1, 2019 with no significant impact on our condensed consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“Tax Reform Act”). We adopted ASU 2018-02 effective January 1, 2019 and elected to recognize a cumulative-effect adjustment increasing retained earnings by $28.8 million related to the change in the U.S. federal corporate tax rate.

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which changes the fair value measurement disclosure requirements. The ~~guidance is~~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 FinancialInstruments, 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 Estimated 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 ~~early~~previously applicable GAAP. We recognized a cumulative-effect adjustment decreasing retained earnings by $1.7 million on January 1, 2020. The adoption ~~permitted.~~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 ~~potential~~ impact ~~of the standard~~it will have on our financial ~~reporting and the timing of adoption.~~statements.

Note 2 - Revenue from Contracts with Customers

Performance Obligations

We provide various services to meet the needs of our customers and we group these service offerings into three broad categories: Core Services, High-Value Services and Other Security Services.

Core Services

Cash-in-transit ("CIT") and ATM services are core services we provide to customers throughout the world. We charge customers per service performed or based on the value of goods transported. CIT services generally involve the secure transportation of cash, securities and other valuables between businesses, financial institutions and central banks. ATM services are generally composed of management services, including cash replenishment and forecasting, remote monitoring, transaction processing, installation and maintenance.

High-Value Services

Our high-value services leverage our brand, global infrastructure and core services and include cash management services, global services and payment services. We offer a variety of cash management services such as currency and coin counting and sorting, deposit preparation and reconciliation, and safe device installation and servicing (including our CompuSafe^® service). Our global services business provides secure ground, sea and air transportation and storage of highly-valued commodities including diamonds, jewelry, precious metals and other valuables. We also provide payment services which include bill payment and processing services on behalf of utility companies and other billers plus general purpose reloadable prepaid cards and payroll cards.

Other Security Services

Our other security services feature the protection of airports, offices, warehouses, stores, and public venues in Europe and Brazil.

For performance obligations related to the services described above, we generally satisfy our obligations as each action to provide the service to the customer occurs. Because the customers simultaneously receive and consume the benefits from our services, these performance obligations are deemed to be satisfied over time. We use an output method, units of service provided, to recognize revenue because that is the best method to represent the transfer of our services to the customer at the agreed upon rate for each action.

Although not as significant as our service offerings, we also sell goods to customers from time to time, such as safe devices. In those transactions, we satisfy our performance obligation at a point in time. We recognize revenue when the goods are delivered to the customer as that is the point in time that best represents when control has transferred to the customer.

Our contracts with customers describe the services we can provide along with the fees for each action to provide the service. We typically send invoices to customers for all of the services we have provided within a monthly period and payments are generally due within 30 to 60 days of the invoice date.

Although our customer contracts specify the fees for each action to provide service, the majority of the services stated in our contracts do not have a defined quantity over the contract term. Accordingly, the transaction price is considered variable as there is an unknown volume of services that will be rendered over the course of the contract. We recognize revenue for these services in the period in which they are provided to the customer based on the contractual rate at which we have the right to invoice the customer for each action.

Some of our contracts with customers contain clauses that define the level of service that the customer will receive. The service level agreements (“SLA”) within those contracts contain specific calculations to determine whether the appropriate level of service has been met within a specific period, which is typically a month. We estimate SLA penalties and recognize the amounts as a reduction to revenue.

Taxes collected from customers and remitted to governmental authorities are not included in revenues in the condensed consolidated statements of operations.

Revenue Disaggregated by Reportable Segment and Type of Service


(In millions)	Core Services		High-Value Services		Other Security Services	Total		Core Services		High-Value Services		Other Security Services	Total
Three months ended June 30, 2020

Reportable Segments:
North America								$	204.0	145.1		—	349.1
South America								87.1		67.7		4.1	158.9
Rest of World								129.0		152.6		36.4	318.0
Total reportable segments								420.1		365.4		40.5	826.0

Three months ended June 30, 2019

Reportable Segments:
North America	$	279.8	162.7		—	442.5		$	279.8	162.7		—	442.5
South America	118.8		104.0		2.4	225.2		118.8		104.0		2.4	225.2
Rest of World	88.1		124.4		34.1	246.6		88.1		124.4		34.1	246.6
Total reportable segments	486.7		391.1		36.5	914.3		486.7		391.1		36.5	914.3

Not Allocated to Segments:
Acquisitions and dispositions	—		(0.3	)	—	(0.3	)	—		(0.3	)	—	(0.3	)
Total	$	486.7	390.8		36.5	914.0		$	486.7	390.8		36.5	914.0

Three months ended June 30, 2018
Six months ended June 30, 2020

Reportable Segments:
North America	$	189.8	134.2		—	324.0		$	478.2	315.2		—	793.4
South America	113.9		116.2		3.2	233.3		187.5		161.5		7.8	356.8
Rest of World	88.3		128.9		49.6	266.8		211.0		270.5		67.1	548.6
Total reportable segments	392.0		379.3		52.8	824.1		876.7		747.2		74.9	1,698.8

Not Allocated to Segments:
Venezuela	7.7		17.9		—	25.6
Total	$	399.7	397.2		52.8	849.7

Six months ended June 30, 2019

Reportable Segments:
North America	$	557.0	320.0		—	877.0		$	557.0	320.0		—	877.0
South America	238.0		212.1		5.4	455.5		238.0		212.1		5.4	455.5
Rest of World	176.1		243.7		67.0	486.8		176.1		243.7		67.0	486.8
Total reportable segments	971.1		775.8		72.4	1,819.3		971.1		775.8		72.4	1,819.3

Not Allocated to Segments:
Acquisitions and dispositions	—		(0.3	)	—	(0.3	)	—		(0.3	)	—	(0.3	)
Total	$	971.1	775.5		72.4	1,819.0		$	971.1	775.5		72.4	1,819.0

Six months ended June 30, 2018

Reportable Segments:
North America	$	379.8	264.3		—	644.1
South America	239.3		242.7		6.1	488.1
Rest of World	181.9		259.3		104.0	545.2
Total reportable segments	801.0		766.3		110.1	1,677.4

Not Allocated to Segments:
Venezuela	18.4		33.0		—	51.4
Total	$	819.4	799.3		110.1	1,728.8

The majority of our revenues from contracts with customers are earned by providing services and these performance obligations are satisfied over time. Smaller amounts of revenues are earned from selling goods, such as safes, to customers where the performance obligations are satisfied at a point in time.

Certain of our high-value services involve the leasing of assets, such as safes, to our customers along with the regular servicing of those safe devices. Revenues related to the leasing of these assets are recognized in accordance with applicable lease guidance, ~~(ASC 842 beginning in 2019 and ASC 840 prior to 2019),~~ but are included in the above table as the amounts are a small percentage of overall revenues.

Contract Balances

Contract Asset

Although payment terms and conditions can vary, for the majority of our customer contracts, we invoice for all of the services provided to the customer within a monthly period. For certain customer contracts, the timing of our performance may precede our right to invoice the customer for the total transaction price. For example, Brink's affiliates in certain countries, primarily in South America, negotiate annual price adjustments with certain customers and, once the price increases are finalized, the pricing changes are made retroactive to services provided in earlier periods. These retroactive pricing adjustments are estimated and recognized as revenue with a corresponding contract asset in the same period in which the related services are performed. As the estimate of the ultimate transaction price changes, we recognize a cumulative catch-up adjustment for the change in estimate. Contract 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.~~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:


(In millions)	Receivables		Contract Asset		Contract Liability	Receivables		Contract Asset		Contract Liability

Opening (January 1, 2019)	$	599.5	1.8		2.5
Closing (June 30, 2019)	678.3		0.9		8.5
Opening (January 1, 2020)						$	635.6	1.9		12.8
Closing (June 30, 2020)						695.0		1.4		11.9
Increase (decrease)	$	78.8	(0.9	)	6.0	$	59.4	(0.5	)	(0.9	)

The amount of revenue recognized in the six months ended June 30, ~~2019~~2020 that was included in the January 1, ~~2019~~2020 contract liability balance was ~~$2.5~~$9.4 million. This revenue consists of services provided to customers who had prepaid for those services prior to the current year. ~~The majority of the increase in the contract liability balance resulted from the acquisition of Balance Innovations, LLC in the second quarter of 2019 (see Note 6).~~

We also recognized revenue of ~~$0.4~~$0.6 million in the six months ended June 30, ~~2019~~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 June 30, ~~2019,~~2020, the net capitalized costs to obtain contracts was ~~$1.9~~$1.6 million, which is included in other assets on the condensed consolidated balance sheet. Amortization expense was not significant and there were no impairment losses recognized related to these contract costs in the first six months of ~~2019.~~2020.

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.

Note 3 - Segment information

We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. Our CODM is our President and Chief Executive Officer. Our CODM evaluates performance and allocates resources to each operating segment based on a profit or loss measure which, at the reportable segment level, excludes the following:

Corporate expenses - former non-segment and regional management costs, currency transaction gains and losses, adjustments to reconcile segment accounting policies to U.S. GAAP, and costs related to global initiatives are excluded from segment results.

Other items not allocated to segments - certain significant items such as reorganization and restructuring actions that are evaluated on an individual basis by management and are not considered part of the ongoing activities of the business are excluded from segment results. Prior to deconsolidation (see Note 1), results from Venezuela operations were also excluded from our segment results due to the Venezuelan government's restrictions that have prevented us from repatriating funds. We also exclude certain costs, gains and losses related to acquisitions and dispositions of assets and of businesses. ~~Beginning in the third quarter of 2018, we began to consolidate~~ Brink's Argentina 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 ~~reconstruction of the accounts receivable subledger in the U.S. global services operations,~~ 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 ~~also~~ 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:


	Revenues				Operating Profit					Revenues				Operating Profit
	Three Months Ended June 30,				Three Months Ended June 30,					Three Months Ended June 30,				Three Months Ended June 30,
(In millions)	2019			2018	2019			2018		2020		2019		2020			2019
Reportable Segments:
North America	$	442.5		324.0	$	46.4		26.1		$	349.1	442.5		$	17.9		46.4
South America	225.2			233.3	45.0			46.1		158.9		225.2		33.1			45.0
Rest of World	246.6			266.8	26.2			26.2		318.0		246.6		31.4			26.2
Total reportable segments	914.3			824.1	117.6			98.4		826.0		914.3		82.4			117.6

Reconciling Items:
Corporate expenses:
General, administrative and other expenses	—			—	(32.5		)	(20.9	)	—		—		(24.6		)	(32.5	)
Foreign currency transaction gains (losses)	—			—	(0.3		)	(1.7	)	—		—		(0.9		)	(0.3	)
Reconciliation of segment policies to GAAP(a)	—			—	4.0			0.4		—		—		16.3			4.0
Other items not allocated to segments:
Venezuela operations	—			25.6	—			(1.2	)
Reorganization and Restructuring	—			—	(10.6		)	(4.5	)	—		—		(39.0		)	(10.6	)
Acquisitions and dispositions	(0.3		)	—	(22.6		)	(7.4	)	—		(0.3	)	(30.9		)	(22.6	)
Argentina highly inflationary impact	—			—	(0.1		)	—		—		—		(2.8		)	(0.1	)
Internal loss^(b)										—		—		(1.2		)	(2.6	)
Reporting compliance^(a)(c)	—			—	(2.9		)	(1.4	)	—		—		(0.3		)	(0.3	)
Total	$	914.0		849.7	$	52.6		61.7		$	826.0	914.0		$	(1.0	)	52.6

(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 ~~reconstruction of an accounts receivable subledger,~~ accounting standard ~~implementation and material weakness mitigation.~~implementation. Additional information provided at page ~~44.~~45.


	Revenues				Operating Profit					Revenues				Operating Profit
	Six Months Ended June 30,				Six Months Ended June 30,					Six Months Ended June 30,				Six Months Ended June 30,
(In millions)	2019			2018	2019			2018		2020		2019		2020			2019
Reportable Segments:
North America	$	877.0		644.1	$	90.4		46.7		$	793.4	877.0		$	50.9		90.4
South America	455.5			488.1	88.0			101.7		356.8		455.5		74.7			88.0
Rest of World	486.8			545.2	50.0			51.8		548.6		486.8		46.4			50.0
Total reportable segments	1,819.3			1,677.4	228.4			200.2		1,698.8		1,819.3		172.0			228.4

Reconciling Items:
Corporate expenses:
General, administrative and other expenses	—			—	(59.6		)	(52.0	)	—		—		(51.9		)	(59.6	)
Foreign currency transaction gains (losses)	—			—	0.6			(2.2	)	—		—		(3.6		)	0.6
Reconciliation of segment policies to GAAP(a)	—			—	4.2			1.7		—		—		19.8			4.2
Other items not allocated to segments:
Venezuela operations	—			51.4	—			2.3
Reorganization and Restructuring	—			—	(14.1		)	(8.2	)	—		—		(44.6		)	(14.1	)
Acquisitions and dispositions	(0.3		)	—	(39.8		)	(13.9	)	—		(0.3	)	(50.0		)	(39.8	)
Argentina highly inflationary impact	—			—	(4.4		)	—		—		—		(5.2		)	(4.4	)
Internal loss^(b)										—		—		(10.8		)	(2.6	)
Reporting compliance^(a)(c)	—			—	(4.3		)	(1.4	)	—		—		(0.5		)	(1.7	)
Total	$	1,819.0		1,728.8	$	111.0		126.5		$	1,698.8	1,819.0		$	25.2		111.0

(a)


(b)	See details regarding the impact of the Internal Loss at Note 1.


(c)	Costs (primarily third party expenses) related to ~~reconstruction of an accounts receivable subledger,~~ accounting standard ~~implementation and material weakness mitigation.~~implementation. Additional information provided at page ~~44.~~45.



	June 30,		December 31,
(in millions)	2020		2019
Assets held by Reportable Segment
North America	$	1,598.4	1,683.0
South America	730.7		806.1
Rest of World	1,999.6		1,006.8
Total reportable segments	4,328.7		3,495.9
Corporate items	442.5		267.9
Total	$	4,771.2	3,763.8

Note 4 - Retirement benefits

Pension plans

We have various defined-benefit pension plans covering eligible current and former employees. Benefits under most plans are based on salary and years of service.

The components of net periodic pension cost for our pension plans were as follows:


	U.S. Plans					Non-U.S. Plans				Total				U.S. Plans					Non-U.S. Plans				Total
(In millions)	2019			2018		2019		2018		2019		2018		2020			2019		2020		2019		2020		2019

Three months ended June 30,

Service cost	$	—		—		2.4		2.6		2.4		2.6		$	—		—		3.0		2.4		3.0		2.4
Interest cost on projected benefit obligation	8.6			8.0		2.6		3.3		11.2		11.3		6.7			8.6		2.9		2.6		9.6		11.2
Return on assets – expected	(12.7		)	(13.4	)	(2.6	)	(2.8	)	(15.3	)	(16.2	)	(11.6		)	(12.7	)	(3.1	)	(2.6	)	(14.7	)	(15.3	)
Amortization of losses	4.8			6.9		1.0		1.0		5.8		7.9		7.2			4.8		1.2		1.0		8.4		5.8
Amortization of prior service cost	—			—		0.1		—		0.1		—
Amortization of prior service credit														—			—		—		0.1		—		0.1
Settlement loss	—			—		0.6		0.5		0.6		0.5		—			—		0.1		0.6		0.1		0.6
Net periodic pension cost	$	0.7		1.5		4.1		4.6		4.8		6.1		$	2.3		0.7		4.1		4.1		6.4		4.8

Six months ended June 30,

Service cost	$	—		—		4.9		5.6		4.9		5.6		$	—		—		5.9		4.9		5.9		4.9
Interest cost on projected benefit obligation	17.1			16.0		5.2		7.3		22.3		23.3		13.3			17.1		5.3		5.2		18.6		22.3
Return on assets – expected	(25.4		)	(26.8	)	(5.2	)	(5.7	)	(30.6	)	(32.5	)	(23.1		)	(25.4	)	(5.7	)	(5.2	)	(28.8	)	(30.6	)
Amortization of losses	9.8			14.0		2.0		2.3		11.8		16.3		14.1			9.8		2.4		2.0		16.5		11.8
Amortization of prior service cost	—			—		0.1		0.2		0.1		0.2		—			—		—		0.1		—		0.1
Settlement loss	—			—		0.9		1.0		0.9		1.0		—			—		0.5		0.9		0.5		0.9
Net periodic pension cost	$	1.5		3.2		7.9		10.7		9.4		13.9		$	4.3		1.5		8.4		7.9		12.7		9.4

We did not make cash contributions to the primary U.S. pension plan in ~~2018~~2019 or the first six months of ~~2019.~~2020. Based on assumptions described in our Annual Report on Form 10-K for the year ended December 31, ~~2018,~~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:


	UMWA Plans					Black Lung and Other Plans			Total				UMWA Plans					Black Lung and Other Plans				Total
(In millions)	2019			2018		2019		2018	2019		2018		2020			2019		2020		2019		2020		2019

Three months ended June 30,

Service cost	$	—		—		0.1		0.1	0.1		0.1		$	—		—		0.1		0.1		0.1		0.1
Interest cost on accumulated postretirement benefit obligations	4.1			4.2		0.9		0.9	5.0		5.1		3.1			4.1		1.0		0.9		4.1		5.0
Return on assets – expected	(3.3		)	(4.2	)	—		—	(3.3	)	(4.2	)	(3.2		)	(3.3	)	—		—		(3.2	)	(3.3	)
Amortization of losses	3.8			5.0		1.2		1.5	5.0		6.5		4.1			3.8		2.1		1.2		6.2		5.0
Amortization of prior service (credit) cost	(1.2		)	(1.2	)	(0.1	)	0.3	(1.3	)	(0.9	)	(1.1		)	(1.2	)	(0.2	)	(0.1	)	(1.3	)	(1.3	)
Net periodic postretirement cost	$	3.4		3.8		2.1		2.8	5.5		6.6		$	2.9		3.4		3.0		2.1		5.9		5.5

Six months ended June 30,

Service cost	$	—		—		0.1		0.1	0.1		0.1		$	—		—		0.1		0.1		0.1		0.1
Interest cost on accumulated postretirement benefit obligations	9.1			8.7		1.8		1.6	10.9		10.3		6.4			9.1		1.9		1.8		8.3		10.9
Return on assets – expected	(6.6		)	(8.4	)	—		—	(6.6	)	(8.4	)	(6.5		)	(6.6	)	—		—		(6.5	)	(6.6	)
Amortization of losses	8.9			10.5		2.3		2.7	11.2		13.2		8.1			8.9		4.1		2.3		12.2		11.2
Amortization of prior service (credit) cost	(2.3		)	(2.3	)	(0.2	)	0.6	(2.5	)	(1.7	)
Amortization of prior service credit													(2.3		)	(2.3	)	(0.2	)	(0.2	)	(2.5	)	(2.5	)
Net periodic postretirement cost	$	9.1		8.5		4.0		5.0	13.1		13.5		$	5.7		9.1		5.9		4.0		11.6		13.1

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.

Note 5 - Income taxes


	Three Months Ended June 30,					Six Months Ended June 30,					Three Months Ended June 30,					Six Months Ended June 30,
	2019			2018		2019			2018		2020			2019		2020			2019
Continuing operations
Provision for income taxes (in millions)	$	12.7		18.6		$	22.4		30.0
Provision (benefit) for income taxes (in millions)											$	(43.2	)	12.7		$	(55.4	)	22.4
Effective tax rate	47.4		%	(20.9	)%	43.9		%	(57.5	%)	158.8		%	47.4	%	151.4		%	43.9	%

~~Tax Reform~~2020 Compared to U.S. Statutory Rate

~~On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Tax Reform Act”) was enacted into law.~~ The ~~Tax Reform Act includes a reduction~~effective income tax rate on continuing operations in the ~~federal~~first six months of 2020 was greater than the 21% U.S. statutory tax rate primarily due to the geographical mix of earnings, the seasonality of book losses for ~~corporations from 35% to 21% as of January 1, 2018, a one-time transition~~which no tax benefit can be recorded, nondeductible expenses in Mexico, taxes on cross border payments and U.S. taxable income limitations, and the cumulative undistributed earnings of foreign subsidiaries as of December 31, 2017, a repeal of the corporate alternative minimum tax, and more extensive limitations on deductibility of performance-based compensation for named executive officers. Other provisions effective as of January 1, 2018, which could materially impact the Company in the near-term, include the creationcharacterization of a ~~new U.S. minimum~~French business tax ~~on foreign earnings called the Global Intangible Low-Taxed Income (“GILTI”) and limitations on the deductibility of interest expense.~~

~~Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Reform Act, the Company recorded provisional amounts~~ as of December 31, 2017, in accordance with Staff Accounting Bulletin No. 118 ("SAB 118"). We recorded a provisional one-time non-cash charge of $92 million in the fourth quarter of 2017 to remeasure the deferredan income tax, assets for the new rate and for other legislative changes. In the fourth quarter of 2018, we recorded a benefit of $2.3 million to reverse a component of the provisional one-time non-cash charge as a result of guidance issuedpartially offset by the ~~U.S. authorities.~~

~~We filed our 2017 U.S. federal income~~ tax return in October 2018, which did not reflect a U.S. federal current tax liability for the transition tax due to our high-tax foreign income, but we recorded an incremental $1.3 million of foreign tax credits, offset with a full valuation allowance in the fourth quarter of 2018 which was in addition to the provisional $31.1 million foreign tax credit offset with a full valuation allowancebenefits related to the ~~transition tax recorded in the fourth quarter~~distribution of 2017. We did not record a current state tax liability related to the transition tax in accordance with the interpretation of existing state laws and the provisional estimates in the fourth quarter of 2017, but we recorded the state impact of the transition tax of $0.2 million when we filed our tax returns in the fourth quarter of 2018.share-based payments.

We adopted an accounting policy related to the provision of deferred taxes related to GILTI and determined that we would not record deferred taxes with respect to GILTI, but would instead treat GILTI as a current period cost. We did not change our assertion on the determination of which subsidiaries that we consider to be permanently invested and for which we do not expect to repatriate to the U.S. as a result of the Tax Reform Act. The accounting for the Tax Reform Act was completed in the fourth quarter of 2018 in accordance with SAB 118.

2019 Compared to U.S. Statutory Rate

The effective income tax rate on continuing operations in the first six months of 2019 was greater than the 21% U.S. statutory tax rate primarily due to the geographical mix of earnings, the seasonality of book losses for which no tax benefit can be recorded, nondeductible expenses in Mexico, taxes on cross border payments and the characterization of a French business tax as an income tax, partially offset by the tax benefits related to the distribution of share-based payments.

~~2018 Compared to U.S. Statutory Rate~~

The effective income tax rate on continuing operations in the first six months of 2018 was negative primarily due to the impact of Venezuela’s earnings and the related tax expense, including the largely nondeductible loss on the deconsolidation of the Venezuela operations. The items that cause the rate to be higher than the U.S. statutory rate include the geographical mix of earnings, the seasonality of book losses for which no tax benefit can be recorded, nondeductible expenses in Mexico, taxes on cross border payments and the characterization of a French business tax as an income tax, partially offset by the significant tax benefits related to the distribution of share-based payments and a French income tax credit.

Note 6 - 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 April 2020, we acquired cash management operations from G4S located in the Netherlands, Belgium, Ireland, Hong Kong, Cyprus, Romania, the Czech Republic, Malaysia and the Dominican Republic. In June 2020, we acquired G4S' cash management operations in the Philippines. For the majority of the acquisitions in the second quarter of 2020, we acquired 100% of the ownership interests. In Malaysia, the Dominican Republic and the Philippines, 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 half of 2020 is $694.7 million. The operations we have acquired through June 30, 2020, which represent approximately 80% of the total estimated purchase price, generate approximately $690 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 minimumdividend 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 June 30, 2020 as we believe it is unlikely that the contingent consideration payments will be reduced.



(In millions)	Estimated Fair Value at Acquisition Date

Fair value of purchase consideration

Cash paid through June 30, 2020	$	651.2
Contingent consideration	38.0
Liabilities assumed from seller	9.4
Receivable from seller	(3.9		)
Fair value of purchase consideration	$	694.7

Fair value of net assets acquired

Cash	$	214.3
Restricted cash	30.1
Accounts receivable	129.5
Other current assets	22.6
Property and equipment, net	123.1
Right-of-use assets, net	72.0
Intangible assets^(a)	157.7
Goodwill^(b)	370.3
Other noncurrent assets	19.3
Current liabilities	(229.8		)
Lease liabilities	(58.2		)
Other noncurrent liabilities	(88.4		)
Fair value of net assets acquired	$	762.5
Less: Fair value of noncontrolling interest	(67.8		)
Fair value of purchase consideration	$	694.7


(a)	Intangible assets are composed of customer relationships ($158 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 ($257 million), the Global Markets-Asia reporting unit ($97 million) and the Global Markets-South America reporting unit ($5 million). Approximately $12 million of goodwill has not been assigned to a reporting unit as of June 30, 2020. 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 ~~is expected to expand~~expanded our operations in southeastern Brazil and ~~will be~~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 ~~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~~We finalized our purchase price accounting in the ~~valuations that are required~~fourth quarter of 2019. There were no significant changes to ~~allocate the purchase price. As a result, the allocation~~our fair value estimates of the ~~provisional purchase price may change in the future.~~net assets acquired of Rodoban.


(In millions)	Estimated Fair Value at Acquisition Date			Fair Value at Acquisition Date

Fair value of purchase consideration

Cash paid through June 30, 2019	$	133.1
Fair value of future payments to sellers	2.6
Cash paid through June 30, 2020				$	135.7
Indemnification asset	(1.9		)	(1.9		)
Fair value of purchase consideration	$	133.8		$	133.8

Fair value of net assets acquired^(a)
Fair value of net assets acquired

Cash	$	1.4		$	1.4
Accounts receivable	8.2			8.9
Other current assets	0.5			0.5
Property and equipment, net	3.7			2.4
Intangible assets^(b)	47.9
Goodwill^(c)	84.1
Intangible assets^(a)				49.0
Goodwill^(b)				85.1
Other noncurrent assets	5.3			5.8
Current liabilities	(9.6		)	(11.4		)
Noncurrent liabilities	(7.7		)	(7.9		)
Fair value of net assets acquired	$	133.8		$	133.8


(a)	~~Final allocation will be determined once the valuation is complete.~~


~~(b)~~	Intangible assets are composed of customer relationships ($4647 million fair value and 11 year amortization period), trade name ($1 million fair value and 1 year amortization period), and non-compete agreement ($1 million fair value and 5 year amortization period).


~~(c)~~(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.~~

~~Dunbar Armored, Inc. ("Dunbar")~~

~~U.S. Cash Management business~~

On ~~August 13, 2018~~, we acquired 100% of the shares of Dunbar for approximately $547 million, subject to a working capital adjustment. The Dunbar business is being integrated with our existing Brink's U.S. operations. This acquisition has expanded our customer base in the U.S. as a result of Dunbar's focus on small-to-medium sized retailers and financial institutions. At the time of the acquisition, Dunbar had approximately 5,400 employees, 78 branches and over 1,600 armored vehicles across its operations.

We have provisionally estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition in the following table. The determination of estimated fair value required management to make significant estimates and assumptions. The amounts reported are considered provisional as we are completing the valuations that are required to allocate the purchase price. As a result, the allocation of the provisional purchase price may change in the future. In the fourth quarter of 2018, our fair value estimates of acquisition date intangible assets decreased approximately $20 million, acquisition date goodwill increased approximately $24 million, acquisition date other noncurrent assets increased approximately $11 million and acquisition date noncurrent liabilities increased approximately $13 million as compared to our initial estimates in the period of acquisition. There have been no other significant changes to our fair value estimates of the net assets acquired for the Dunbar acquisition.

(In millions) Estimated Fair Value at Acquisition Date

Fair value of purchase consideration

Cash paid through June 30, 2019 $ 546.8
Fair value of purchase consideration $ 546.8

Fair value of net assets acquired^(a)

Cash $ 25.8
Accounts receivable 31.9
Other current assets 11.7
Property and equipment, net 57.4
Intangible assets^(b)
162.0
Goodwill^(c)
306.7
Other noncurrent assets 21.1
Current liabilities (29.7 )
Noncurrent liabilities (40.1 )
Fair value of net assets acquired $ 546.8


~~(a)~~	~~Final allocation will be determined once the valuation is complete.~~


~~(b)~~	Intangible assets are composed of customer relationships ($148 million fair value and 15 year amortization period) and rights related to the trade name ($14 million fair value and 8 year amortization period).


~~(c)~~	Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating Dunbar’s operations with our existing Brink’s U.S. operations. All of the goodwill has been assigned to the U.S. reporting unit and is expected to be deductible for tax purposes.

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 ~~two~~3 business acquisitions (BI, COMEF and ~~COMEF)~~TVS) was approximately ~~$40~~$49 million. Together, these ~~two~~3 acquired operations have approximately ~~400~~1,300 employees.

For these ~~two~~3 business acquisitions (BI, COMEF and ~~COMEF)~~TVS), we ~~have provisionally~~ estimated fair values for the assets purchased and liabilities assumed as of the date of the acquisitions. These estimated amounts are aggregated in the following table. The determination of estimated fair value required management to make significant estimates and assumptions. We finalized our purchase price accounting in the second quarter of 2020 for BI and COMEF and there were no significant changes to our fair value estimates of the net assets acquired for these acquisitions. The amounts reported for TVS are considered provisional as we ~~are completing the valuations that are required~~continue to ~~allocate the purchase price. As a result, the allocation of the~~finalize our purchase price ~~may change in the future.~~

allocation for that acquisition.


(In millions)	Estimated Fair Value at Acquisition Date			Estimated Fair Value at Acquisition Date

Fair value of purchase consideration

Cash paid through June 30, 2019	$	39.0
Cash paid through June 30, 2020				$	60.2
Contingent consideration	1.6			1.6
Indemnification asset	(0.3		)	(12.9		)
Fair value of purchase consideration	$	40.3		$	48.9

Fair value of net assets acquired^(a)

Cash	$	5.3		$	6.5
Accounts receivable	1.9			4.5
Property and equipment, net	2.3			7.1
Intangible assets^(a)	15.9			24.4
Goodwill^(b)	23.3			33.8
Other current and noncurrent assets	1.0			1.9
Current liabilities	(7.6		)	(15.2		)
Noncurrent liabilities	(1.8		)	(14.1		)
Fair value of net assets acquired	$	40.3		$	48.9


(a)	Intangible assets are composed of developed technology, customer relationships and trade names. ~~Final allocation will be determined after all valuations have been completed.~~

(b)

Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating these acquired operations into our existing operations. The goodwill from these acquisitions have been assigned to the following reporting units: BI (U.S.), COMEF (Brazil) and ~~COMEF (Brazil)~~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 six months of 2020.



(In millions)	Revenue		Net income (loss) attributable to Brink's

Three months ended June 30, 2020
G4S	$	123.5	2.6
Total	$	123.5	2.6

Six months ended June 30, 2020
G4S	$	128.9	3.0
Total	$	128.9	3.0

The pro forma consolidated results of Brink’s presented below reflect a hypothetical ownership as of January 1, ~~2017~~2018 for the businesses we acquired during ~~2018~~2019 and a hypothetical ownership as of January 1, ~~2018~~2019 for the ~~business~~businesses we acquired in the first six months of ~~2019.~~2020.

(In millions) Revenue Net income (loss) attributable to Brink's

Actual results included in Brink's consolidated results for businesses acquired in 2019 from the date of acquisition

Three months ended June 30, 2019
Rodoban $ 17.3
0.4
Other acquisitions^(a)
1.1
0.1
Total $ 18.4
0.5

Six months ended June 30, 2019
Rodoban $ 36.0
1.1
Other acquisitions^(a)
1.1
0.1
Total $ 37.1
1.2


~~(a)~~	~~Includes the actual results of BI and COMEF.~~


(In millions)	Revenue		Net income (loss) attributable to Brink's		Revenue		Net income (loss) attributable to Brink's

Pro forma results of Brink's for the three months ended June 30,
2020
Brink's as reported					$	826.0	12.9
G4S^(a)					19.5		(0.2	)
Total					$	845.5	12.7

2019
Brink's as reported	$	914.0	12.5		$	914.0	12.5
G4S^(a)					172.5		2.3
Other acquisitions^(a)	4.2		0.2		9.0		0.5
Total	$	918.2	12.7		$	1,095.5	15.3

2018
Pro forma results of Brink's for the six months ended June 30,
2020
Brink's as reported	$	849.7	(107.9	)	$	1,698.8	14.7
Rodoban^(a)	18.4		(1.2	)
Dunbar^(a)	98.0		2.1
Other acquisitions^(a)	5.5		(0.2	)
G4S^(a)					166.5		(1.4	)
Total	$	971.6	(107.2	)	$	1,865.3	13.3

Pro forma results of Brink's for the six months ended June 30
2019
Brink's as reported	$	1,819.0	26.2		$	1,819.0	26.2
G4S^(a)					345.0		4.6
Rodoban^(a)	0.6		—		0.6		—
Other acquisitions^(a)	12.2		0.5
Other 2019 acquisitions^(a)					21.9		1.0
Total	$	1,831.8	26.7		$	2,186.5	31.8

2018
Brink's as reported	$	1,728.8	(85.6	)
Rodoban^(a)	39.0		(1.9	)
Dunbar^(a)	197.7		4.3
Other acquisitions^(a)	11.2		(0.4	)
Total	$	1,976.7	(83.6	)


(a)	Represents amounts prior to acquisition by Brink's.

Acquisition costs

We have incurred ~~$1.9~~$16.1 million in transaction costs related to business acquisitions in the first six months of ~~2019 ($2.1~~2020 (compared to $1.9 million in the first six months of ~~2018)~~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.

Note 7 - Accumulated other comprehensive income (loss)

Other comprehensive income (loss), including the amounts reclassified from accumulated other comprehensive loss into earnings, was as follows:


	Amounts Arising During the Current Period					Amounts Reclassified to Net Income (Loss)						Amounts Arising During the Current Period				Amounts Reclassified to Net Income (Loss)
(In millions)	Pretax			Income Tax		Pretax		Income Tax		Total Other Comprehensive Income (Loss)		Pretax			Income Tax	Pretax		Income Tax		Total Other Comprehensive Income (Loss)
Three months ended June 30, 2020

Amounts attributable to Brink's:
Benefit plan adjustments												$	(1.5	)	0.2	13.4		(3.3	)	8.8
Foreign currency translation adjustments^(b)												27.2			—	—		—		27.2
Gains (losses) on cash flow hedges												(1.4		)	0.1	(1.2	)	0.7		(1.8	)
												24.3			0.3	12.2		(2.6	)	34.2

Amounts attributable to noncontrolling interests:
Foreign currency translation adjustments												1.0			—	—		—		1.0
												1.0			—	—		—		1.0

Total
Benefit plan adjustments^(a)												(1.5		)	0.2	13.4		(3.3	)	8.8
Foreign currency translation adjustments^(b)												28.2			—	—		—		28.2
Gains (losses) on cash flow hedges^(c)												(1.4		)	0.1	(1.2	)	0.7		(1.8	)
												$	25.3		0.3	12.2		(2.6	)	35.2

Three months ended June 30, 2019

Amounts attributable to Brink's:
Benefit plan adjustments	$	(2.3	)	0.4		10.2		(2.4	)	5.9		$	(2.3	)	0.4	10.2		(2.4	)	5.9
Foreign currency translation adjustments	9.0			—		—		—		9.0		9.0			—	—		—		9.0
Gains (losses) on cash flow hedges	(14.2		)	3.9		3.6		(1.2	)	(7.9	)	(14.2		)	3.9	3.6		(1.2	)	(7.9	)
	(7.5		)	4.3		13.8		(3.6	)	7.0		(7.5		)	4.3	13.8		(3.6	)	7.0

Amounts attributable to noncontrolling interests:
Foreign currency translation adjustments	0.1			—		—		—		0.1		0.1			—	—		—		0.1
	0.1			—		—		—		0.1		0.1			—	—		—		0.1

Total
Benefit plan adjustments^(a)	(2.3		)	0.4		10.2		(2.4	)	5.9		(2.3		)	0.4	10.2		(2.4	)	5.9
Foreign currency translation adjustments	9.1			—		—		—		9.1		9.1			—	—		—		9.1
Gains (losses) on cash flow hedges^(b)	(14.2		)	3.9		3.6		(1.2	)	(7.9	)
Gains (losses) on cash flow hedges^(c)												(14.2		)	3.9	3.6		(1.2	)	(7.9	)
	$	(7.4	)	4.3		13.8		(3.6	)	7.1		$	(7.4	)	4.3	13.8		(3.6	)	7.1

Three months ended June 30, 2018

Amounts attributable to Brink's:
Benefit plan adjustments	$	1.3		0.2		22.9		(3.4	)	21.0
Foreign currency translation adjustments	(138.2		)	—		107.2		(0.5	)	(31.5	)
Gains (losses) on cash flow hedges	0.2			(0.1	)	—		—		0.1
	(136.7		)	0.1		130.1		(3.9	)	(10.4	)

Amounts attributable to noncontrolling interests:
Benefit plan adjustments	—			—		(0.2	)	—		(0.2	)
Foreign currency translation adjustments	(0.8		)	—		—		—		(0.8	)
	(0.8		)	—		(0.2	)	—		(1.0	)

Total
Benefit plan adjustments^(a)	1.3			0.2		22.7		(3.4	)	20.8
Foreign currency translation adjustments	(139.0		)	—		107.2		(0.5	)	(32.3	)
Gains (losses) on cash flow hedges^(b)	0.2			(0.1	)	—		—		0.1
	$	(137.5	)	0.1		129.9		(3.9	)	(11.4	)


	Amounts Arising During the Current Period					Amounts Reclassified to Net Income (Loss)					Amounts Arising During the Current Period					Amounts Reclassified to Net Income (Loss)
(In millions)	Pretax			Income Tax		Pretax	Income Tax		Total Other Comprehensive Income (Loss)		Pretax			Income Tax		Pretax		Income Tax		Total Other Comprehensive Income (Loss)
Six months ended June 30, 2020

Amounts attributable to Brink's:
Benefit plan adjustments											$	2.7		0.3		26.7		(6.4	)	23.3
Foreign currency translation adjustments^(b)											(92.7		)	—		—		—		(92.7	)
Gains (losses) on cash flow hedges											8.6			(5.2	)	(25.9	)	9.1		(13.4	)
											(81.4		)	(4.9	)	0.8		2.7		(82.8	)

Amounts attributable to noncontrolling interests:
Foreign currency translation adjustments											0.6			—		—		—		0.6
											0.6			—		—		—		0.6

Total
Benefit plan adjustments^(a)											2.7			0.3		26.7		(6.4	)	23.3
Foreign currency translation adjustments^(b)											(92.1		)	—		—		—		(92.1	)
Gains (losses) on cash flow hedges^(c)											8.6			(5.2	)	(25.9	)	9.1		(13.4	)
											$	(80.8	)	(4.9	)	0.8		2.7		(82.2	)

Six months ended June 30, 2019

Amounts attributable to Brink's:
Benefit plan adjustments	$	(3.6	)	0.6		21.5	(5.1	)	13.4		$	(3.6	)	0.6		21.5		(5.1	)	13.4
Foreign currency translation adjustments	9.3			—		—	—		9.3		9.3			—		—		—		9.3
Gains (losses) on cash flow hedges	(19.5		)	5.0		1.0	(0.3	)	(13.8	)	(19.5		)	5.0		1.0		(0.3	)	(13.8	)
	(13.8		)	5.6		22.5	(5.4	)	8.9		(13.8		)	5.6		22.5		(5.4	)	8.9

Amounts attributable to noncontrolling interests:
Foreign currency translation adjustments	0.4			—		—	—		0.4		0.4			—		—		—		0.4
	0.4			—		—	—		0.4		0.4			—		—		—		0.4

Total
Benefit plan adjustments^(a)	(3.6		)	0.6		21.5	(5.1	)	13.4		(3.6		)	0.6		21.5		(5.1	)	13.4
Foreign currency translation adjustments	9.7			—		—	—		9.7		9.7			—		—		—		9.7
Gains (losses) on cash flow hedges^(b)	(19.5		)	5.0		1.0	(0.3	)	(13.8	)
Gains (losses) on cash flow hedges^(c)											(19.5		)	5.0		1.0		(0.3	)	(13.8	)
	$	(13.4	)	5.6		22.5	(5.4	)	9.3		$	(13.4	)	5.6		22.5		(5.4	)	9.3

Six months ended June 30, 2018

Amounts attributable to Brink's:
Benefit plan adjustments	$	0.3		0.5		37.7	(6.8	)	31.7
Foreign currency translation adjustments	(138.1		)	—		107.2	(0.5	)	(31.4	)
Gains (losses) on cash flow hedges	0.6			(0.2	)	—	—		0.4
	(137.2		)	0.3		144.9	(7.3	)	0.7

Amounts attributable to noncontrolling interests:
Foreign currency translation adjustments	0.1			—		—	—		0.1
	0.1			—		—	—		0.1

Total
Benefit plan adjustments^(a)	0.3			0.5		37.7	(6.8	)	31.7
Foreign currency translation adjustments	(138.0		)	—		107.2	(0.5	)	(31.3	)
Gains (losses) on cash flow hedges^(b)	0.6			(0.2	)	—	—		0.4
	$	(137.1	)	0.3		144.9	(7.3	)	0.8

(a)

The amortization of actuarial losses and prior service cost is part of total net periodic retirement benefit cost when reclassified to net income. Net periodic retirement benefit cost also includes service cost, interest cost, expected return on assets, and settlement losses. Total service cost is allocated between cost of revenues and selling, general and administrative expenses on a plan-by-plan basis and the remaining net periodic retirement benefit cost items are allocated to interest and other nonoperating income (expense):


	Three Months Ended June 30,			Six Months Ended June 30,			Three Months Ended June 30,			Six Months Ended June 30,
(In millions)	2019		2018	2019		2018	2020		2019	2020		2019
Total net periodic retirement benefit cost included in:
Cost of revenues	$	1.9	2.1	$	3.8	4.5	$	2.6	1.9	$	5.0	3.8
Selling, general and administrative expenses	0.6		0.6	1.2		1.2	0.5		0.6	1.0		1.2
Interest and other nonoperating income (expense)	7.8		10.0	17.5		21.7	9.2		7.8	18.3		17.5


(b)	2020 foreign currency translation adjustment amounts arising during the current period reflect primarily the Mexican peso, Brazilian real and the Argentine peso.


(c)	Pretax gains and losses on cash flow hedges are classified in the condensed consolidated statements of operations as:

other operating income (expense) ($~~2.4~~3.7 million gain in the three months ended June 30, 2020 and $2.4 million of losses in the three months ended June 30, ~~2019 and no gains or losses~~2019; as well as $29.8 million gain in the ~~three~~six months ended June 30, ~~2018; as well as~~2020 and $1.4 million gain in the six months ended June 30, ~~2019 and no gains or losses~~2019)

interest expense ($2.4 million of expense in the ~~six~~three months ended June 30, ~~2018)~~

~~interest expense ($1.3~~2020 and $1.3 million of expense in the three months ended June 30, 2019; as well as $3.9 million of expense in the six months ended June 30, 2020 and $2.5 million of expense in the six months ended June 30, 2019).

The changes in accumulated other comprehensive loss attributable to Brink’s are as follows:


(In millions)	Benefit Plan Adjustments			Foreign Currency Translation Adjustments		Gains (Losses) on Cash Flow Hedges		Total		Benefit Plan Adjustments			Foreign Currency Translation Adjustments		Gains (Losses) on Cash Flow Hedges		Total

Balance as of December 31, 2018	$	(572.1	)	(382.0	)	0.8		(953.3	)
Balance as of December 31, 2019										$	(583.0	)	(382.8	)	(13.2	)	(979.0	)
Other comprehensive income (loss) before reclassifications	(3.0		)	9.3		(14.5	)	(8.2	)	3.0			(92.7	)	3.4		(86.3	)
Amounts reclassified from accumulated other comprehensive loss to net income	16.4			—		0.7		17.1		20.3			—		(16.8	)	3.5
Other comprehensive income (loss) attributable to Brink's	13.4			9.3		(13.8	)	8.9		23.3			(92.7	)	(13.4	)	(82.8	)
Cumulative effect of change in accounting principle^(a)	(28.8		)	—		—		(28.8	)
Balance as of June 30, 2019	$	(587.5	)	(372.7	)	(13.0	)	(973.2	)
Balance as of June 30, 2020										$	(559.7	)	(475.5	)	(26.6	)	(1,061.8	)


~~(a)~~	~~We adopted ASU 2018-02 (see Note 1) effective January 1, 2019 and recognized a cumulative-effect adjustment to retained earnings.~~

Note 8 - Fair value of financial instruments

Investments in ~~Mutual Funds~~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 are as follows:


(In millions)	June 30, 2019		December 31, 2018	June 30, 2020		December 31, 2019

Senior unsecured notes
$600 million Senior unsecured notes
Carrying value	$	600.0	600.0	$	600.0	600.0
Fair value	596.1		519.9	581.7		624.7

$400 million Senior unsecured notes
Carrying value				400.0		—
Fair value				394.9		—

The fair value estimate of our senior unsecured notes was based on the present value of future cash flows, discounted at rates for similar instruments at the measurement date, which we have categorized as a Level 3 valuation.

Forward and Swap Contracts

We have outstanding foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies. At June 30, ~~2019,~~2020, the notional value of our ~~shorter~~short term outstanding foreign currency forward and swap contracts was ~~$146~~$142 million, with average maturities of approximately one month. These ~~shorter term~~ foreign currency forward and swap contracts primarily offset exposures in the euro, ~~and~~ the British pound and the Brazilian real and are not designated as hedges for accounting ~~purposes and, accordingly,~~purposes. Accordingly, changes in their fair value are recorded immediately in earnings. At June 30, 2020, the fair value of our short term foreign currency contracts was an asset of approximately $3.9 million and was included in prepaid expenses and other on the condensed consolidated balance sheet. At December 31, 2019, the fair value of these ~~shorter term~~ foreign currency contracts was ~~not significant.~~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:



	Three Months Ended June 30,					Six Months Ended June 30,
(In millions)	2020			2019		2020			2019

Derivative instrument gains (losses) included in other operating income (expense)	$	2.6		(1.4	)	$	3.9		2.5

Derivative instrument gains (losses) included in other nonoperating income (expense)^(a)	(0.4		)	—		(8.1		)	—


(a)	Represents loss on foreign currency forward contracts related to 2020 acquisition of business operations from G4S.

In the first quarter of 2019, we entered into a ~~longer~~long term cross currency swap contract to hedge exposure in Brazilian real, which is designated as a cash flow hedge for accounting purposes. At June 30, ~~2019,~~2020, the notional value of this ~~longer~~long term contract was ~~$142~~$110 million with a weighted-average maturity of ~~2.5~~2.1 years. We recognized net losses of $1.3 million on this contract, of which gains of $1.4 million were included in other operating income (expense) to offset transaction losses of $1.4 million and expenses of $2.7 million were included in interest expense in the first six months of 2019. At June 30, ~~2019,~~2020, the fair value of the ~~longer~~long term cross currency swap contract was a ~~$1.3~~$29.2 million net ~~liability,~~asset, of which $3.9 million is included in prepaid expenses and other and $25.3 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 ~~$3.2~~$4.9 million asset is included in other assets and a ~~$4.5~~$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:



	Three Months Ended June 30,					Six Months Ended June 30,
(In millions)	2020			2019		2020			2019

Derivative instrument gains (losses) included in other operating income (expense)	$	3.7		(2.4	)	$	29.8		1.4

Offsetting transaction gains (losses)	(3.7		)	2.4		(29.8		)	(1.4	)

Derivative instrument gains (losses) included in interest expense	(0.3		)	(1.3	)	(1.0		)	(2.7	)

Net gain (loss) on derivative instrument	3.4			(3.7	)	28.8			(1.3	)

In the first quarter of 2016, we entered into ~~two~~2 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 June 30, 2020, the notional value of these contracts was $40 million with a remaining weighted-average maturity of 0.4 years. At June 30, 2020, the fair value of these interest rates swaps was a liability of $0.3 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 six months of 2020 or 2019.

In the first quarter of 2019, we entered into 10 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 June 30, 2019, the notional value of these contracts was $40 million with a remaining weighted-average maturity of 0.9 years. At June 30, 2019, the fair value of these interest rates swaps was a net asset of $0.3 million, of which $0.2 million was included in prepaid expenses and other and $0.1 million was included in other assets on the condensed consolidated balance sheet. The effect of these swaps are included in interest expense and were not significant in the first six months of 2019.

In the first quarter of 2019, we entered into ten interest rate swaps that hedge cash flow risk associated with changes in variable interest rates and that are designated as cash flow hedges for accounting purposes. At June 30, 2019,2020, the notional value of these contracts was $400 million with a remaining weighted-average maturity of ~~2.3~~1.8 years. At June 30, 2020, the fair value of these interest rate swaps was a net liability of $34.2 million, of which $9.6 million was included in accrued liabilities and $24.6 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 ~~$15.9~~$15.0 million, of which ~~$2.7~~$3.6 million was included in accrued liabilities and ~~$13.2~~$11.4 million was included in other liabilities on the condensed consolidated balance sheet.

The effect of these swaps ~~are~~is included in interest ~~expense and~~expense. The amounts recognized in the 2019 periods were not ~~significant in the first six months of 2019.~~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.

~~Contingent Consideration~~

The estimated fair value of our liabilities for contingent consideration represents the fair value of the potential amounts payable for our acquisition of Maco Transportadora. The remaining contingent amount is expected to be paid in a scheduled second installment in the fourth quarter of 2019, with the final amount paid based partially on the retention of customer revenue versus a target revenue amount. The remaining contingent consideration arrangement requires us to pay potential undiscounted amounts between $0 to $15.1 million based on retaining the revenue levels of existing customers at the acquisition dates. If there is a shortfall in revenues, a multiple of 2.5 is applied to the revenue shortfall and the contingent consideration to be paid to the former owners is reduced.

We used a probability-weighted approach to estimate the fair value of these contingent consideration payments. The fair value of the contingent consideration is the full $15.1 million potentially payable as of June 30, 2019 as we believe it is unlikely that the contingent consideration payments will be reduced for a revenue shortfall.

At June 30, 2019, this $15.1 million was included in accrued liabilities on the condensed consolidated balance sheet. The fair value of this liability was estimated using a discounted cash flow technique with significant inputs that are not observable in the market and thus represents a Level 3 valuation. The significant inputs in the Level 3 valuation not supported by market activity included our probability assessments of expected future cash flows related to our acquisition of this entity during the period from acquisition to the estimated settlement date of the remaining payment.

The contingent consideration payments may differ from the amounts that are ultimately paid, with any changes in the liabilities recorded in interest and other nonoperating expense in our condensed consolidated statements of operations until the liabilities are settled.

Other Financial Instruments

Other financial instruments include cash and cash equivalents, accounts receivable, floating rate debt, accounts payable and accrued liabilities. The financial statement carrying amounts of these items approximate the fair value.

There were no transfers in or out of any of the levels of the valuation hierarchy in the first six months of ~~2019.~~2020.

Note 9 - Debt


	June 30,		December 31,	June 30,		December 31,
(In millions)	2019		2018	2020		2019
Debt:
Short-term borrowings
Restricted cash borrowings^(a)	$	10.4	10.5	$	10.3	10.3
Other	18.8		18.4	1.8		4.0
Total short-term borrowings	$	29.2	28.9	$	12.1	14.3

Long-term debt
Bank credit facilities:
Term loan A^(b)	$	786.7	466.9	$	1,326.3	767.0
Senior unsecured notes^(c)	592.5		592.0	986.6		592.9
Revolving Credit Facility	209.4		340.0	—		115.0
Other	8.0		5.7	8.2		4.9
Financing leases	133.7		120.5	150.2		149.5
Total long-term debt	$	1,730.3	1,525.1	$	2,471.3	1,629.3

Total debt	$	1,759.5	1,554.0	$	2,483.4	1,643.6

Included in:
Current liabilities	$	101.8	82.4	$	120.8	88.8
Noncurrent liabilities	1,657.7		1,471.6	2,362.6		1,554.8
Total debt	$	1,759.5	1,554.0	$	2,483.4	1,643.6


(a)	These amounts are for short-term borrowings related to cash borrowed under lending arrangements used in the process of managing customer cash supply chains, which is currently classified as restricted cash and not available for general corporate purposes. See Note 1213 for more details.


(b)	Amounts outstanding are net of unamortized debt costs of ~~$3.3~~$6.3 million as of June 30, ~~2019~~2020 and ~~$1.8~~$3.0 million as of December 31, ~~2018.~~2019.


(c)	Amounts outstanding are net of unamortized debt costs of ~~$7.5~~$13.4 million as of June 30, ~~2019~~2020 and ~~$8.0~~$7.1 million as of December 31, ~~2018.~~2019.

Long-Term Debt

Senior Secured Credit Facility

In ~~February 2019,~~April 2020, we amended our senior secured credit facility (the “Senior Secured Credit Facility”) with ~~Wells Fargo~~ Bank ~~National Association,~~of America, N.A. as administrative ~~agent.~~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 ~~an $800~~we had borrowed a total of $1,390 million of term ~~loan facility~~loans thereunder (the "Term ~~Loan Facility"~~Loans"). Prior to the amendment, the ~~Term Loan Facility had an outstanding~~ balance of outstanding Term Loans was approximately ~~$469~~$760 million. The proceeds ~~from~~of the ~~amendment~~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 ~~transaction.~~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. The pricing grid in the Senior Secured Facility remains unchanged, except for the addition of a fifth tier if the total net debt leverage ratio equals or exceeds 4.0x.

All Loans under the Revolving Credit Facility and the Term Loans will mature five years after the first amendment date ~~(February~~(on February 8, 2024). Principal payments for the Term Loans are due quarterly ~~for the amended Term Loan Facility~~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 June 30, ~~2019, $791~~2020, $1,000 million was available under the Revolving Credit Facility. The obligations under the Senior Secured Credit Facility are secured by a first-priority lien on all or substantially all of the assets of the Company and certain of its domestic subsidiaries, including a first-priority lien on equity interests of certain of the Company’s direct and indirect subsidiaries. The Company and certain of its domestic subsidiaries also guarantee the obligations under the Senior Secured Credit Facility.

The margin on both LIBOR and alternate base rate borrowings under the Senior Secured Credit Facility is based on the Company’s ~~consolidated~~total net debt leverage ratio. The margin on LIBOR borrowings, which can range from 1.25% to ~~2.00%~~2.50%, was 1.75% at June 30, ~~2019.~~2020. The margin on alternate base rate borrowings, which can range from 0.25% to ~~1.00%~~1.50%, was 0.75% as of June 30, ~~2019.~~2020. We also pay an annual commitment fee on the unused portion of the Revolving Credit Facility based on the Company’s ~~consolidated~~total net leverage ratio. The commitment fee, which can range from 0.15% to ~~0.30%~~0.35%, was 0.25% as of June 30, ~~2019.~~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~~3 committed letter of credit facilities totaling ~~$80~~$58 million, of which approximately ~~$27~~$12 million was available at June 30, ~~2019.~~2020. At June 30, ~~2019,~~2020, we had undrawn letters of credit and guarantees of ~~$53~~$46 million issued under these facilities. A $10 million facility expires in April 2022, a ~~$54~~$32 million facility expires in December ~~2019~~2022 and a $16 million facility expires in January 2024.

We have ~~a $40 million~~2 uncommitted letter of credit ~~facility,~~facilities totaling $55 million, of which approximately ~~$18~~$33 million was available ~~and $22 million was issued under this facility~~ at June 30, ~~2019. This~~2020. At June 30, 2020, we had undrawn letters of credit and guarantees of $22 million issued under these facilities. A $40 million facility expires in ~~January 2020.~~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 ~~financial~~ covenants at June 30, ~~2019.~~2020.

Note 10 - ~~Leases~~Credit losses

We ~~lease facilities, vehicles, CompuSafe~~^® ~~units, computers~~are exposed to credit losses primarily through sales of our Core and ~~other equipment under long-term operating~~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 ~~financing leases~~payment terms are generally between 30 and 60 days.

We assess our financial assets on a pool basis by aggregating financial assets with ~~varying terms. Most~~similar risk characteristics. We have pooled the financial assets by geographical location, specifically by country, because of the ~~operating leases contain renewal and/or purchase options at our sole discretion. The renewal periods differ by asset class~~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 ~~included in our determination~~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 ~~lease term if we determine we are reasonably certain to exercise the option.~~

~~We have taken the component election for all material asset categories, except CompuSafe units. This election allows us to account for lease components (e.g., fixed payments~~outstanding accounts receivables balances that were not contemplated or ~~variable payments that depend on~~relevant during a rate that can be determined at commencement, including rent for the right to use the asset) together with nonlease components (e.g., other fixed payments that deliver a good or service including common-area maintenance costs) in the calculation of the right-of-use asset and corresponding liability. Variable costs, such as inflation adjusted payments for facilities, or nonlease components that vary periodically (included as part of the component election), are expensed as incurred.

~~Our leases do not contain any material residual value guarantees or material restrictive covenants.~~previous period.

The ~~components~~following table is a rollforward of ~~lease assets and liabilities were as follows:~~

(In millions) Balance sheet classification June 30, 2019
Assets:
Operating lease assets Right-of-use assets, net $ 280.8
Finance lease assets Property and equipment, net 145.9
Total leased assets $ 426.7

Liabilities:
Current:
Operating Accrued liabilities $ 61.7
Financing Current maturities of long-term debt 29.0
Noncurrent:
Operating Lease liabilities 229.9
Financing Long-term debt 104.7
Total lease liabilities $ 425.3

the allowance for bad debts for the six month period ending June 30, 2020.

~~The components of lease expense were as follows:~~Allowance for doubtful accounts:

(In millions) 2019
Six Months Ended June 30,

Operating lease cost^(a)
$ 49.7
Short-term lease cost 8.9
Financial lease cost:
Amortization of right-of-use assets 14.0
Interest on lease liabilities 3.5
Total lease cost $ 76.1



(In millions)

December 31, 2019	$	30.2
Cumulative effect of change in accounting principle	2.3
Provision for uncollectible accounts receivable^(a)	13.1
Write-offs less recoveries	(1.4		)
Foreign currency exchange effects	(0.7		)
June 30, 2020	$	43.5


(a)	~~Includes variable lease costs, which are immaterial.~~The provision in 2020 includes a $10.6 million allowance related to the internal loss in our U.S global services operations. See Note 1 for details.

~~Net rent expense and amortization expense and interest on financing leases included in continuing operations was $72.7 million for the six months ended June 30, 2018.~~

~~Other information related to leases was as follows:~~

(In millions, except for lease term and discount rate) 2019
Six Months Ended June 30,

Supplemental Cash Flows Information

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 48.6
Operating cash flows from finance leases 3.5
Financing cash flows from finance leases 13.7
Right-of-use assets obtained in exchange for lease obligations:
Operating leases 26.6
Finance leases 28.6

Weighted Average Remaining Lease Term

Operating leases 7.8 years
Finance leases 5.2 years

Weighted Average Discount Rate

Operating leases 6.7 %
Finance leases 5.5 %

~~As of December 31, 2018, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:~~

(In millions) Facilities Vehicles Other Total

2019 $ 51.7
9.7
21.6
83.0
2020 46.2
5.5
15.5
67.2
2021 39.5
2.3
9.5
51.3
2022 33.8
0.6
5.3
39.7
2023 29.4
0.1
2.3
31.8
Later years 130.3
—
—
130.3
$ 330.9
18.2
54.2
403.3

~~As of December 31, 2018, minimum repayments of long-term debt under financing leases were as follows:~~

(In millions)

2019 $ 25.1
2020 23.5
2021 21.7
2022 19.7
2023 16.2
Later years 14.3
Total $ 120.5

Note 11 - 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 June 30, ~~2019~~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. ~~For~~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 ~~three and six months ended June 30, 2019 or the~~ prior year periods.

Compensation expenses are classified as selling, general and administrative expenses in the condensed consolidated statements of operations. Compensation expenses for the share-based awards were as follows:

Compensation Expense Compensation Expense
Three Months Ended June 30, Six Months Ended June 30,
(in millions) 2019 2018 2019 2018

Performance Share Units $ 8.8
2.7
$ 14.6
6.6
Market Share Units —
—
—
0.1
Restricted Stock Units 1.9
1.5
3.9
3.3
Deferred Stock Units and fees paid in stock 0.3
0.3
0.6
0.5
Stock Options 5.7
1.2
7.0
2.0
Share-based payment expense 16.7
5.7
26.1
12.5
Income tax benefit (3.8 ) (1.3 ) (6.0 ) (2.9 )
Share-based payment expense, net of tax $ 12.9
4.4
$ 20.1
9.6



	Compensation Expense					Compensation Expense
	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)	2020			2019		2020			2019

Performance share units	$	2.4		8.8		$	7.0		14.6
Restricted stock units	1.7			1.9		3.0			3.9
Deferred stock units and fees paid in stock	0.3			0.3		0.6			0.6
Performance-based stock options	0.5			5.4		1.2			6.5
Time-based vesting stock options	0.5			0.3		0.8			0.5
Cash based awards	0.4			—		0.4			—
Share-based payment expense	5.8			16.7		13.0			26.1
Income tax benefit	(1.2		)	(3.8	)	(2.8		)	(6.0	)
Share-based payment expense, net of tax	$	4.6		12.9		$	10.2		20.1

Performance-Based Stock Options

In 2018, 2017 and 2016, we granted performance-based stock options that have a service condition as well as a market condition. In addition, some of the awards granted in 2016 ~~contain~~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 six months of ~~2019:~~2020:


	Shares (in thousands)	Weighted-Average Grant-Date Fair Value		Shares (in thousands)	Weighted-Average Grant-Date Fair Value
Outstanding balance as of December 31, 2018	1,287.0	$	10.88
Outstanding balance as of December 31, 2019				1,191.1	$	11.52
Granted	—	—		—	—
Forfeited	—	—		—	—
Exercised	—	—		—	—
Outstanding balance as of June 30, 2019^(a)	1,287.0	$	14.00
Outstanding balance as of June 30, 2020				1,191.1	$	11.52


~~(a)~~	Certain performance-based stock options were modified in the second quarter of 2019. The weighted-average grant date fair value per share at June 30, 2019 reflects the inclusion of the modified fair value per share for the modified awards.

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 six months of ~~2019:~~2020:


	Shares (in thousands)		Weighted-Average Grant-Date Fair Value		Shares (in thousands)	Weighted-Average Grant-Date Fair Value
Outstanding balance as of December 31, 2018	2.7		$	21.09
Outstanding balance as of December 31, 2019					127.0	$	21.56
Granted	138.7		21.58		80.8	21.10
Forfeited	(14.4	)	21.60		—	—
Exercised	—		—		—	—
Outstanding balance as of June 30, 2019	127.0		$	21.56
Outstanding balance as of June 30, 2020					207.8	$	21.38

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 six months of ~~2019:~~2020:


	Shares (in thousands)		Weighted-Average Grant-Date Fair Value		Shares (in thousands)		Weighted-Average Grant-Date Fair Value
Nonvested balance as of December 31, 2018	235.8		$	52.63
Nonvested balance as of December 31, 2019					172.7		$	71.87
Granted	91.1		78.03		83.1		75.41
Forfeited	(6.6	)	71.70		(10.0	)	78.68
Conversion to cash settled awards^(a)					(1.3	)	72.80
Vested	(117.4	)	44.73		(83.3	)	67.31
Nonvested balance as of June 30, 2019^(a)	202.9		$	68.29
Nonvested balance as of June 30, 2020					161.2		$	75.63


(a)	Certain RSUs were modified in the ~~second~~first quarter of ~~2019.~~2020 to change the awards' classification from share-settled to cash-settled. The weighted-average grant date fair value per share ~~at June 30, 2019 reflects~~shown above is the ~~inclusion~~removal of the ~~modified~~original fair ~~value per share for the modified awards.~~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 ~~2019,~~2020, the performance period is from January 1, ~~2019~~2020 to December 31, ~~2021.~~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 ~~2019,~~2020, the performance period is from January 1, ~~2019~~2020 to December 31, ~~2021.~~2022.

The following table summarizes all PSU activity during the first six months of ~~2019:~~2020:

Shares
(in thousands)
Weighted-Average Grant-Date Fair Value
Nonvested balance as of December 31, 2018 697.3
$ 47.74
Granted 202.9
81.42
Forfeited (12.8 ) 77.06
Vested^(a)(b)
(278.8 ) 29.40
Nonvested balance as of June 30, 2019^(c)
608.6
$ 68.99



	Shares (in thousands)		Weighted-Average Grant-Date Fair Value
Nonvested balance as of December 31, 2019	564.2		$	70.10
Granted	242.7		84.60
Forfeited	(16.9	)	75.92
Conversion to cash settled awards^(a)	(4.6	)	65.42
Vested^(b)	(204.3	)	56.72
Nonvested balance as of June 30, 2020	581.1		$	80.73


(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, ~~2018~~2019 were ~~225.9~~394.0 thousand, compared to target shares of 187.0. Additionally, in accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the performance period ended June 30, 2017 were 91.8 compared to target shares of 91.8.204.3 thousand.


~~(b)~~	~~Certain PSUs were modified and distributed in the first quarter of 2019 and the resulting impact was not material.~~


~~(c)~~	Certain PSUs were modified in the second quarter of 2019. The weighted-average grant date fair value per share at June 30, 2019 reflects the inclusion of the modified fair value per share for the modified awards.

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 six months of ~~2019:~~2020:


	Shares (in thousands)		Weighted-Average Grant-Date Fair Value		Shares (in thousands)		Weighted-Average Grant-Date Fair Value
Nonvested balance as of December 31, 2018	12.5		$	74.43
Nonvested balance as of December 31, 2019					12.1		$	79.69
Granted	11.1		78.70		21.6		40.46
Vested	(12.5	)	74.43		(11.1	)	78.70
Nonvested balance as of June 30, 2019	11.1		$	78.70
Nonvested balance as of June 30, 2020					22.6		$	42.70

Note 12 - Capital Stock

Common Stock

At June 30, ~~2019,~~2020, we had 100 million shares of common stock authorized and ~~50.0~~50.5 million shares issued and outstanding.

Dividends

We paid regular quarterly dividends on our common stock during the last two years. On July ~~12, 2019,~~17, 2020, the Board declared a regular quarterly dividend of 15 cents per share payable on September ~~3, 2019.~~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 June 30, ~~2019,~~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

~~In May 2017,~~On February 6, 2020, our board of directors authorized a ~~$200~~$250 million share repurchase ~~program, which will expire~~authorization that expires on December 31, 2021. The authorization replaces our previous $200 million repurchase program, authorized by the board of directors in May 2017, which expired December 31, 2019. WeUnder 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, and, at June 30, 2019, approximately $106 million remains available under this program.~~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 December 2018, we entered into an accelerated~~ No shares have been repurchased under the $250 million share repurchase arrangement ("ASR") with a financial institution. In exchange for a $50 million up-front payment at the beginning of the purchase period, the financial institution delivered to us 700,000 shares of our common stock for an average repurchase price of $71.43 per share. The shares received were retired in the period they were delivered to us, and the up-front payment was accounted for as a reduction to shareholders' equity in the condensed consolidated balance sheet. For purposes of calculating earnings per share, we reported the ASR as a repurchase of our common stock in December 2018 and as a forward contract indexed to our common stock. The ASR met all of the applicable criteria for equity classification, and, as a result, was not accounted for as a derivative instrument.

~~The ASR purchase period subsequently ended in February 2019 and we received and retired an additional 37,387 shares under the ASR, resulting in an overall average repurchase price of $67.81 per share.~~

Additionally, during the year ended December 31, 2018, we used $43.5 million to repurchase 610,177 shares at an average price of $71.22 per share. These shares were retired upon repurchase. No additional shares were repurchased in the six months ended June 30, 2019.program.

Shares Used to Calculate Earnings per Share


	Three Months Ended June 30,		Six Months Ended June 30,		Three Months Ended June 30,		Six Months Ended June 30,
(In millions)	2019	2018	2019	2018	2020	2019	2020	2019

Weighted-average shares:
Basic^(a)	50.2	51.2	50.1	51.0	50.8	50.2	50.7	50.1
Effect of dilutive stock awards and options	0.7	—	0.8	—	0.2	0.7	0.5	0.8
Diluted	50.9	51.2	50.9	51.0	51.0	50.9	51.2	50.9

Antidilutive stock awards and options excluded from denominator	0.1	1.6	0.1	1.7	0.8	0.1	0.6	0.1

(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 six months ended June 30, ~~2019,~~2020, and 0.3 million in the three months and 0.3 million in the six months ended June 30, ~~2018.~~2019.

Note 13 - Supplemental cash flow information


	Six Months Ended June 30,			Six Months Ended June 30,
(In millions)	2019		2018	2020		2019
Cash paid for:
Interest	$	40.9	29.3	$	40.9	40.9
Income taxes, net	31.9		48.6	42.8		31.9

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. Conversions under these other market mechanisms have settled at rates that are generally 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. We did not have any such conversions in the first six months of 2020 or 2019.

Non-cash Investing and Financing Activities

We acquired ~~$30.5~~$19.4 million in armored vehicles and other equipment under financing lease arrangements in the first six months of ~~2019~~2020 compared to ~~$27.5~~$30.5 million in armored vehicles and other equipment acquired under financing lease arrangements in the first six months of ~~2018.~~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. As part of this service offering, we have entered into lending arrangements with some of our customers. Cash borrowed under these lending arrangements is used in the process of managing these customers' cash supply chains. The cash for which we have temporary title and the cash borrowed under these customer lending arrangements is restricted and cannot be used for any other purpose other than to service our customers who participate in this service offering.

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 June 30, ~~2019,~~2020, we held ~~$105.8~~$171.5 million of restricted cash ($~~10.4~~10.3 million represented short-term borrowings, ~~$59.9~~$87.4 million represented restricted cash held for customers, and ~~$35.5~~$67.8 million represented accrued liabilities). At December 31, ~~2018,~~2019, we held ~~$136.1~~$158.0 million of restricted cash ($~~10.5~~10.3 million represented short-term borrowings, ~~$90.3~~$100.3 million represented restricted cash held for customers and ~~$35.3~~$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.


	June 30,		December 31,	June 30,		December 31,
(In millions)	2019		2018	2020		2019
Cash and cash equivalents	$	304.9	343.4	$	531.3	311.0
Restricted cash	105.8		136.1	171.5		158.0
Total, cash, cash equivalents, and restricted cash in the condensed consolidated statements of cash flows	$	410.7	479.5	$	702.8	469.0

Note 14 - 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.

Note 15 - Reorganization and Restructuring

~~2016 Reorganization and Restructuring~~

In the fourth quarter of 2016, management implemented restructuring actions across our global business operations and our corporate functions. As a result of these actions, we recognized $18.1 million in 2016 costs and an additional $17.3 million in 2017 under this restructuring for additional costs related to severance, asset-related adjustments, a benefit program termination and lease terminations. We recognized additional charges of $6.0 million in the first six months of 2018 under this restructuring for severance costs and asset-related adjustments. The actions under this program were substantially completed in 2018.

Other Restructurings

Management periodically implements restructuring actions in targeted sections of our business. As a result of these actions, we recognized ~~charges~~net costs of ~~$2.2 million in the first six months of 2018 and~~ $14.1 million in the first six months of 2019 and $44.6 million in the first six months of 2020, primarily severance ~~costs and charges related to the modification of share-based compensation awards.~~costs. For the ~~current~~ restructuring actions that have not yet been completed, we expect to incur additional costs between $2$5 million and $4$7 million in future periods.

The following table summarizes the costs incurred, payments and utilization, and foreign currency exchange effects of other restructurings:



(In millions)	Severance Costs			Other		Total

Balance as of January 1, 2020	$	7.0		—		7.0
Expense	41.8			2.8		44.6
Payments and utilization	(28.3		)	(2.8	)	(31.1	)
Foreign currency exchange effects	(0.7		)	—		(0.7	)
Balance as of June 30, 2020	$	19.8		—		19.8

Note 16 - Subsequent Events

Acquisition of Cash Management Operations

As discussed in Note 6, on February 26, 2020, we announced that we agreed to purchase the majority of the cash management operations from U.K.-based G4S plc, with closings planned in multiple phases in 2020. On July 6, 2020, we completed the acquisition of G4S cash operations in Indonesia.

We filed an amended form 8-K on July 13, 2020, which provides the historical financial statements of the G4S operations we have agreed to purchase and the unaudited pro forma financial information required by Items 9.01(a) and 9.01(b) of Form 8-K.

THE BRINK’S COMPANY

and subsidiaries

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Brink’s Company offers transportation and logistics management services for cash and valuables throughout the world. These services include:

Cash-in-transit (“CIT”) services – armored vehicle transportation of valuables

ATM services – replenishing and maintaining customers’ automated teller machines; providing network infrastructure services

Global services – secure international transportation of valuables

Cash management services


◦	Currency and coin counting and sorting; deposit preparation and reconciliations; other cash management services


◦	Safe and safe control device installation and servicing (including our patented CompuSafe^® service)


◦	Vaulting services


◦	Check imaging services

Payment services – bill payment and processing services on behalf of utility companies and other billers at any of our Brink’s or Brink’s-operated payment locations in Brazil, Colombia, Panama, and Mexico and Brink’s Money™ general purpose reloadable prepaid cards and payroll cards in the U.S.

Commercial security systems services – design and installation of security systems in designated markets in Europe

Guarding services – protection of airports, offices, and certain other locations in Europe and Brazil with or without electronic surveillance, access control, fire prevention and highly trained patrolling personnel

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 an operating profit or loss measure, excluding income and expenses not allocated to segments.

We have three operating segments:

North America

South America

Rest of ~~World.~~World

RESULTS OF OPERATIONS

COVID-19 Pandemic Impact

We are closely monitoring developments related to the ongoing coronavirus (COVID-19) pandemic, which has created global volatility, uncertainty and economic disruption. We have taken and continue to take steps to mitigate the potential risks to our employees, our customers and our business around the world. We are focused on three priorities:

Protecting our people and providing essential services to our customers;

Preserving cash and optimizing profitability; and

Positioning Brink’s to be stronger on the other side of the crisis.

The COVID-19 pandemic began to have a material adverse impact on our results of operations in the quarter ended March 31, 2020. It first affected our operations in Asia, and then beginning in early March moved sequentially through Europe, North America and South America. Government-imposed mandatory closures and other restrictions across our key global markets have contributed to 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 began to align our cost structure to the reduced demand for our services, including through employee lay-offs, furloughs and pay reductions across our global operations.

As of the date of this filing, significant uncertainty remains with respect to the magnitude of the impact and duration of the COVID-19 pandemic. However, we expect that the COVID-19 pandemic will impact each of our businesses and segments differently. As health and economic conditions around the world have continued to worsen, this has impacted, and may continue to impact, how we do business and the services that we provide. We expect a negative impact on volumes, revenues and operating results while the COVID-19 pandemic continues. To address this negative impact, during the quarter ended March 31, 2020, we began taking steps to reduce expenses including reducing headcount, managing overtime, reducing salaries and benefits, limiting non-safety-related fleet maintenance, eliminating non-essential travel and other expenses, as well as pursuing government assistance (where available). The extent of the impact will depend on future developments, including the duration and spread of the pandemic and related government restrictions, all of which are uncertain and cannot be predicted.

In addition, we cannot predict whether future developments associated with the COVID-19 pandemic will have a materially adverse effect on our long-term liquidity position. During the quarter ended March 31, 2020, in addition to the steps we began taking to reduce expenses, we also began taking steps to reduce capital expenditures, including suspending our fleet replacement program, and optimizing our working capital to conserve our liquidity. We believe we continue to have sufficient liquidity to meet our current obligations. This is, however, a rapidly evolving situation, and we cannot predict the extent or duration of the ongoing COVID-19 pandemic, the effects of it on the global, national or local economy, including the impacts on our ability to access capital, or its effects on our business, financial position, results of operations, and cash flows.

We will continue to monitor developments affecting our employees, customers and operations and take additional steps to address the spread of COVID-19 and its impacts, as necessary.

Refer to the “Liquidity and Capital Resources” section below, as well as Part II. Item 1A, “Risk Factors” for further discussion.

Consolidated Review

GAAP and Non-GAAP Financial Measures

We provide an analysis of our operations below on both a generally accepted accounting principles (“GAAP”) and non-GAAP basis. The purpose of the non-GAAP information is to report our operating profit, income from continuing operations and earnings per share without certain income and expense items that do not reflect the regular earnings of our operations. The non-GAAP financial measures are intended to provide investors with a supplemental comparison of our operating results and trends for the periods presented. Our management believes these measures are also useful to investors as they allow investors to evaluate our performance using the same metrics that our management uses to evaluate past performance and prospects for future performance. We do not consider these items to be reflective of our core operating performance due to the variability of these items from period-to-period in terms of size, nature and significance. The non-GAAP adjustments used to reconcile our GAAP results are described on pages ~~43–44~~44–45 and are reconciled to comparable GAAP measures on pages ~~48–50.~~50–52.

Definition of Organic Growth

Organic growth represents the change in revenues or operating profit between the current and prior period, excluding the effect of acquisitions and dispositions and changes in currency exchange rates. See definitions on page ~~41.~~42.


	Three Months Ended June 30,				%		Six Months Ended June 30,			%		Three Months Ended June 30,				%		Six Months Ended June 30,		%
(In millions, except for per share amounts)	2019		2018		Change		2019	2018		Change		2020			2019	Change		2020	2019	Change
GAAP
Revenues	$	914.0	849.7		8		1,819.0	1,728.8		5		$	826.0		914.0	(10	)	1,698.8	1,819.0	(7	)
Cost of revenues	708.5		666.8		6		1,411.2	1,360.4		4		683.9			708.5	(3	)	1,377.3	1,411.2	(2	)
Selling, general and administrative expenses	154.6		119.9		29		296.3	243.0		22		139.6			154.6	(10	)	287.7	296.3	(3	)
Operating profit	52.6		61.7		(15	)	111.0	126.5		(12	)
Income (loss) from continuing operations^(a)	12.6		(107.8	)	fav		26.3	(85.7	)	fav
Operating profit (loss)												(1.0		)	52.6	unfav		25.2	111.0	(77	)
Income from continuing operations^(a)												13.7			12.6	9		15.5	26.3	(41	)
Diluted EPS from continuing operations^(a)	$	0.25	(2.11	)	fav		0.52	(1.68	)	fav		$	0.27		0.25	8		0.30	0.52	(42	)

Non-GAAP^(b)
Non-GAAP revenues	$	914.3	824.1		11		1,819.3	1,677.4		8		$	826.0		914.3	(10	)	1,698.8	1,819.3	(7	)
Non-GAAP operating profit	88.8		76.2		17		173.6	147.7		18		73.2			88.8	(18	)	136.3	173.6	(21	)
Non-GAAP income from continuing operations^(a)	42.8		40.4		6		82.9	75.8		9		34.1			43.9	(22	)	57.7	84.9	(32	)
Non-GAAP diluted EPS from continuing operations^(a)	$	0.84	0.78		8		1.63	1.45		12		$	0.67		0.86	(22	)	1.13	1.67	(32	)


(a)	Amounts reported in this table are attributable to the shareholders of Brink’s and exclude earnings related to noncontrolling interests.


(b)	Non-GAAP results are reconciled to the applicable GAAP results on pages ~~48–50.~~50–52.

~~Deconsolidation of Venezuela~~

Due to political and economic conditions in Venezuela, in the second quarter of 2018, we determined that we no longer met the accounting criteria for control over our Venezuelan operations. We expect these conditions to continue for the foreseeable future. Consequently, we began reporting the results of our investment in our Venezuelan subsidiaries using the cost method of accounting. We determined the fair value of our cost method investment in, and receivables from, our Venezuelan subsidiaries to be insignificant based on our expectations of dividend payments and settlements of such receivables in future periods. As a result, we deconsolidated our Venezuela subsidiaries and recognized a pretax loss of $126.7 million in the second quarter of 2018. This loss was excluded from our non-GAAP results.

GAAP Basis

Analysis of Consolidated Results: Second Quarter ~~2019~~2020 versus Second Quarter ~~2018~~2019

Consolidated Revenues Revenues ~~increased $64.3~~decreased $88.0 million ~~as the favorable impact of acquisitions ($100.3 million) and~~due to an organic ~~growth~~decrease in ~~South America ($37.7 million),~~ North America ($~~19.7~~82.1 million) ~~and~~, Rest of World ($~~6.3~~52.6 million) ~~were partially offset by~~, and South America ($17.1 million), and the unfavorable impact of currency exchange rates ($~~74.1~~85.7 million) ~~and~~, partially offset by the ~~deconsolidation~~favorable impact of ~~Venezuela operations~~acquisitions ($~~25.6~~149.5 million) ~~in the second quarter of 2018.~~. The unfavorable currency impact was driven by the Brazilian real, Argentine peso ~~Brazilian real~~ and ~~the euro.~~Mexican peso. Revenues ~~increased 4%~~decreased 17% on an organic basis ~~due mainly to higher average selling prices in Argentina (including the effects of inflation) and organic revenue growth in Mexico~~primarily due to ~~price increases and volume growth.~~the impact of the COVID-19 pandemic. See above for our definition of “organic.”

Consolidated Costs and Expenses Cost of revenues ~~increased 6%~~decreased 3% to ~~$708.5~~$683.9 million primarily due to organic decreases in labor and other operational costs, including cost saving actions related to COVID-19, and changes in currency exchange rates, partially offset by the impact of acquisitions and higher costs related to restructuring actions. Selling, general and administrative costs decreased 10% to $139.6 million due to organic decreases in labor and other operational costs, including cost saving actions related to COVID-19, and changes in currency exchange rates, partially offset by the impact of acquisitions, including integration costs, and inflation-based organic increases in labor and other operational costs, partially offset by changes in currency exchange rates and the deconsolidation of Venezuela operations in the second quarter of 2018. Selling, general and administrative costs increased 29% to $154.6 million due primarily to the impact of acquisitions, including integration costs, higher corporate expenses, and inflation-based organic increases in labor and other administrative costs, partially offset by changes in currency exchange rates.costs.

operating profit margin will continue to be comparable to our Rest of World segment in the future, but will not achieve the same level as our South America segment, where profit margins are higher for us and our competitors due to market conditions.

Operating profit decreased ~~$9.1~~$53.6 million due mainly to:

~~higher costs related to business acquisitions~~unfavorable changes in currency exchange rates ($13.2 million) driven by the Argentine peso and ~~dispositions ($16.0 million)~~Brazilian real

the following items included in “Other items not allocated to segments”~~, primarily from the impact of intangible asset amortization and acquisition-related charges in the second quarter of 2019,~~:

~~unfavorable changes in currency exchange rates ($8.9 million) driven by the Argentine peso, slightly offset by the effect of Venezuela devaluations prior to deconsolidation,~~

~~higher corporate expenses ($8.0 million on an organic basis),~~

~~deconsolidation of Venezuela in the second quarter of 2018 ($7.8 million), and~~

~~higher costs related to reorganization and restructuring ($6.1 million) included in “Other items not allocated to segments”,~~

~~partially offset by:~~


◦	higher charges incurred, primarily related to an increase in reorganization and restructuring charges ($28.4 million),


◦	higher costs related to business acquisitions and dispositions ($9.5 million), primarily from the impact of acquisition-related charges and intangible asset amortization in the second quarter of 2020

organic ~~increases~~decreases in ~~South America ($15.0 million),~~ North America ($~~13.0~~26.9 million) and Rest of World ($~~1.0~~9.6 million),

partially offset by:

lower corporate expenses ($20.1 million on an organic basis), and

the favorable operating impact of business acquisitions and dispositions ($~~10.4~~18.6 million), excluding intangible ~~asset~~ amortization and acquisition-related charges.

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased ~~$120.4~~$1.1 million to ~~$12.6~~$13.7 million primarily due to ~~the second quarter of 2018 loss on deconsolidation of Venezuela operations ($126.7 million), lower interest and other expense ($5.0 million), and lower~~an income tax ~~expense~~benefit ($~~5.9~~55.9 million), partially offset by the operating profit decrease mentioned above, higher interest expense ($~~6.9~~0.5 million), and higher ~~income attributable to~~ noncontrolling ~~interests~~interest ($~~1.2~~0.8 million). Earnings per share from continuing operations was ~~$0.25,~~$0.27, up from ~~negative $2.11~~$0.25 in the second quarter of ~~2018.~~2019.

Analysis of Consolidated Results: First Half ~~2019~~2020 versus First Half ~~2018~~2019

Consolidated Revenues Revenues ~~increased $90.2~~decreased $120.2 million ~~as the favorable impact of acquisitions ($200.3 million) and~~due to an organic ~~growth~~decrease in ~~South America ($67.8 million),~~ North America ($~~38.8~~73.6 million), and Rest of World ($~~5.5~~60.8 million) ~~were partially offset by~~, and the unfavorable impact of currency exchange rates ($~~170.8~~145.2 million) ~~and~~, partially offset by the ~~deconsolidation~~favorable impact of ~~Venezuela operations~~acquisitions ($~~51.4~~159.1 million) ~~in the second quarter of 2018.~~. The unfavorable currency impact was driven by the Argentine peso, Brazilian real, and ~~the euro.~~Mexican peso. Revenues ~~increased 4%~~decreased 7% on an organic basis ~~due mainly to higher average selling prices in Argentina (including the effects of inflation) and organic revenue growth in Mexico~~primarily due to ~~price increases and volume growth.~~the impact of the COVID-19 pandemic in the second quarter of 2020. See above for our definition of “organic.”

Consolidated Costs and Expenses Cost of revenues ~~increased 4%~~decreased 2% to ~~$1,411.2~~$1,377.3 million primarily due to changes in currency exchange rates and organic decreases in labor and other operational costs, including cost saving actions related to COVID-19, partially offset by the impact of acquisitions, and higher costs related to restructuring actions in the second quarter of 2020. Selling, general and administrative costs decreased 3% to $287.7 million due to organic decreases in labor and other operational costs, including cost saving actions related to COVID-19, and changes in currency exchange rates, partially offset by the impact of acquisitions, including integration costs, and ~~inflation-based organic increases in labor and other operational costs, partially offset by changes in currency exchange rates and~~charges related to the ~~deconsolidation of Venezuela operations~~internal loss in the second quarter of 2018. Selling, general and administrative costs increased 22% to $296.3 million due primarily to the impact of acquisitions, including integration costs, corporate expenses, and inflation-based organic increases in labor and other administrative costs, partially offset by changes in currency exchange rates.U.S. global services operations.

Consolidated Operating Profit We believe our current operating profit margin in our North America segment is lower than our competitors as our vehicle and labor expenses are too high. We are working to increase our operating profit margin by implementing productivity improvements aimed at reducing vehicle and labor expenses and by selling higher valued services. We expect our North America segment operating profit margin will continue to be comparable to our Rest of World segment in the future, but will not achieve the same level as our South America segment, where profit margins are higher for us and our competitors due to market conditions.

Operating profit decreased ~~$15.5~~$85.8 million due mainly to:

unfavorable changes in currency exchange rates ($~~32.9~~28.3 million) driven by the Argentine peso and Brazilian real ~~slightly offset by~~ and higher foreign currency transaction losses,

the ~~effect of Venezuela devaluations prior to deconsolidation,~~

~~higher costs related to business acquisitions and dispositions ($27.7 million)~~following items included in “Other items not allocated to segments”:


◦	higher charges incurred related to an increase in reorganization and restructuring charges ($30.5 million), and higher charges incurred, primarily bad debt expense, related to an internal loss in the U.S. global services operations ($8.2 million),


◦	higher costs related to business acquisitions and dispositions ($11.2 million), primarily from the impact of acquisition-related charges and intangible asset amortization in the first half of 2020

organic decreases in North America ($37.5 million) and Rest of ~~intangible asset amortization and acquisition-related charges in the first half of 2019,~~

~~deconsolidation of Venezuela in the second quarter of 2018~~World ($~~12.5~~18.1 million),

~~higher costs related to reorganization and restructuring ($5.9 million) included in “Other items not allocated to segments”, and~~partially offset by:

~~higher~~lower corporate expenses ($~~5.2~~23.3 million on an organic basis),

~~partially offset by:~~

~~organic increases in North America ($29.1 million) and South America ($20.2 million), and~~

the favorable operating impact of business acquisitions and dispositions ($~~23.3~~19.3 million), excluding intangible ~~asset~~ amortization and acquisition-related ~~charges.~~charges, and

an organic increase in South America ($11.9 million).

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders ~~increased $112.0~~decreased $10.8 million to ~~$26.3~~$15.5 million primarily due to the second quarter of 2018 loss on deconsolidation of Venezuela operations ($126.7 million), lower interest and other expense ($6.9 million), lower income tax expense ($7.6 million), and lower income attributable to noncontrolling interests ($1.2 million), partially offset by the operating profit decrease mentioned above, higher interest and other nonoperating expense ($4.3 million), and higher noncontrolling interest ($1.0 million), partially offset by an income tax benefit ($77.8 million) and lower interest expense ($~~14.9~~2.5 million). Earnings per share from continuing operations was ~~$0.52, up~~$0.30, down from ~~negative $1.68~~$0.52 in the first half of ~~2018.~~2019.

Non-GAAP Basis

Analysis of Consolidated Results: Second Quarter ~~2019~~2020 versus Second Quarter ~~2018~~2019

Non-GAAP Consolidated Revenues Non-GAAP revenues ~~increased $90.2~~decreased $88.3 million ~~as the favorable impact of acquisitions ($100.6 million) and~~due to an organic ~~growth~~decrease in ~~South America ($37.7 million),~~ North America ($~~19.7~~82.1 million) ~~and~~, Rest of World ($~~6.3~~52.6 million) ~~were partially offset by~~, and South America ($17.1 million), and the unfavorable impact of currency exchange rates ($~~74.1~~85.7 million), partially offset by the favorable impact of acquisitions ($149.2 million). The unfavorable currency impact was driven by the Brazilian real, Argentine peso ~~Brazilian real~~ and ~~the euro. Non-GAAP revenues increased 8%~~Mexican peso. Revenues decreased 17% on an organic basis primarily due ~~mainly~~ to ~~higher average selling prices in Argentina (including~~ the ~~effects~~impact of ~~inflation) and organic revenue growth in Mexico from price increases and volume growth.~~the COVID-19 pandemic. See above for our definition of “organic.”

Non-GAAP Consolidated Operating Profit Non-GAAP operating profit ~~increased $12.6~~decreased $15.6 million due mainly to:

unfavorable changes in currency exchange rates ($18.1 million) driven by the Argentine peso and Brazilian real, and

organic ~~increases~~decreases in ~~South America ($15.0 million),~~ North America ($~~13.0~~26.9 million) and Rest of World ($~~1.0~~9.6 million),

partially offset by:

lower corporate expenses ($20.1 million on an organic basis), and

the favorable operating impact of business acquisitions and dispositions ($~~10.4~~18.6 million), excluding intangible amortization and acquisition-related charges.

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share AmountsNon-GAAP income from continuing operations attributable to Brink’s shareholders decreased $9.8 million to $34.1 million due to the operating profit decrease mentioned above, higher interest expense ($1.7 million) and slightly higher income tax expense ($0.2 million), partially offset ~~by:~~by higher interest and other nonoperating income ($7.0 million) and slightly lower noncontrolling interest ($0.7 million). Earnings per share from continuing operations was $0.67, down from $0.86 in the second quarter of 2019.

Analysis of Consolidated Results: First Half 2020 versus First Half 2019

Non-GAAP Consolidated Revenues Non-GAAP revenues decreased $120.5 million due to an organic decrease in North America ($73.6 million) and Rest of World ($60.8 million), and the unfavorable impact of currency exchange rates ($145.2 million), partially offset by the favorable impact of acquisitions ($158.8 million). The unfavorable currency impact was driven by the Argentine peso, Brazilian real, and Mexican peso. Revenues decreased 7% on an organic basis primarily due to the impact of the COVID-19 pandemic in the second quarter of 2020. See above for our definition of “organic.”

Non-GAAP Consolidated Operating Profit Non-GAAP operating profit decreased $37.3 million due mainly to:

unfavorable changes in currency exchange rates ($~~18.8~~36.2 million) driven by the Argentine peso and Brazilian real and higher foreign currency transaction losses, and

~~higher~~organic decreases in North America ($37.5 million) and Rest of World ($18.1 million),

partially offset by:

lower corporate expenses ($~~8.0~~23.3 million on an organic basis),

the favorable operating impact of business acquisitions and dispositions ($19.3 million), excluding intangible amortization and acquisition-related charges, and

an organic increase in South America ($11.9 million).

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders ~~increased $2.4~~decreased $27.2 million to ~~$42.8~~$57.7 million due to the operating profit ~~increase~~decrease mentioned above, partially offset by higher interest ~~expense ($5.7 million) and higher interest~~ and other nonoperating income ($4.4 million), lower income tax expense ($~~4.7~~4.4 million), lower noncontrolling interest ($0.8 million), and lower interest expense ($0.5 million). Earnings per share from continuing operations was ~~$0.84, up~~$1.13, down from ~~$0.78 in the second quarter of 2018.~~

~~Analysis of Consolidated Results: First Half 2019 versus First Half 2018~~

~~Non-GAAP Consolidated Revenues~~ Non-GAAP revenues increased $141.9 million as the favorable impact of acquisitions ($200.6 million) and organic growth in South America ($67.8 million), North America ($38.8 million), and Rest of World ($5.5 million) were partially offset by the unfavorable impact of currency exchange rates ($170.8 million). The unfavorable currency impact was driven by the Argentine peso, Brazilian real and the euro. Non-GAAP revenues increased 7% on an organic basis due mainly to higher average selling prices in Argentina (including the effects of inflation) and organic revenue growth in Mexico from price increases and volume growth. See above for our definition of “organic.”

~~Non-GAAP Consolidated Operating Profit~~ ~~Non-GAAP operating profit increased $25.9 million due mainly to:~~

~~organic increases in North America ($29.1 million) and South America ($20.2 million), and~~

~~the favorable operating impact of business acquisitions and dispositions ($23.3 million),~~

~~partially offset by:~~

~~unfavorable changes in currency exchange rates ($41.0 million) driven by the Argentine peso and Brazilian real, and~~

~~higher corporate expenses ($5.2 million on an organic basis).~~

~~Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts~~Non-GAAP income from continuing operations attributable to Brink’s shareholders increased $7.1 million to $82.9 million due to the operating profit increase mentioned above and lower income attributable to noncontrolling interests ($1.6 million), partially offset by higher interest expense ($12.4 million) and higher interest and other expense ($7.5 million). Earnings per share from continuing operations was $1.63, up from $1.45$1.67 in the first half of ~~2018.~~2019.

Revenues and Operating Profit by Segment: Second Quarter ~~2019~~2020 versus Second Quarter ~~2018~~2019


				Organic		Acquisitions /						% Change						Organic		Acquisitions /						% Change
(In millions)	2Q'18			Change		Dispositions^(a)		Currency^(b)		2Q'19		Total		Organic	2Q'19			Change		Dispositions^(a)		Currency^(b)		2Q'20		Total		Organic
Revenues:
North America	$	324.0		19.7		98.7		0.1		442.5		37		6	$	442.5		(82.1	)	6.0		(17.3	)	349.1		(21	)	(19	)
South America	233.3			37.7		16.6		(62.4	)	225.2		(3	)	16	225.2			(17.1	)	6.5		(55.7	)	158.9		(29	)	(8	)
Rest of World	266.8			6.3		(14.7	)	(11.8	)	246.6		(8	)	2	246.6			(52.6	)	136.7		(12.7	)	318.0		29		(21	)
Segment revenues^(e)	824.1			63.7		100.6		(74.1	)	914.3		11		8	914.3			(151.8	)	149.2		(85.7	)	826.0		(10	)	(17	)

Other items not allocated to segments^(d)	25.6			(25.6	)	(0.3	)	—		(0.3	)	unfav		unfav	(0.3		)	—		0.3		—		—		(100	)	—
Revenues - GAAP	$	849.7		38.1		100.3		(74.1	)	914.0		8		4	$	914.0		(151.8	)	149.5		(85.7	)	826.0		(10	)	(17	)

Operating profit:
North America	$	26.1		13.0		6.9		0.4		46.4		78		50	$	46.4		(26.9	)	0.4		(2.0	)	17.9		(61	)	(58	)
South America	46.1			15.0		3.5		(19.6	)	45.0		(2	)	33	45.0			0.3		1.1		(13.3	)	33.1		(26	)	1
Rest of World	26.2			1.0		—		(1.0	)	26.2		—		4	26.2			(9.6	)	17.1		(2.3	)	31.4		20		(37	)
Segment operating profit	98.4			29.0		10.4		(20.2	)	117.6		20		29	117.6			(36.2	)	18.6		(17.6	)	82.4		(30	)	(31	)
Corporate^(c)	(22.2		)	(8.0	)	—		1.4		(28.8	)	30		36	(28.8		)	20.1		—		(0.5	)	(9.2	)	(68	)	(70	)
Operating profit - non-GAAP	76.2			21.0		10.4		(18.8	)	88.8		17		28	88.8			(16.1	)	18.6		(18.1	)	73.2		(18	)	(18	)

Other items not allocated to segments^(d)	(14.5		)	(15.6	)	(16.0	)	9.9		(36.2	)	unfav		unfav	(36.2		)	(33.4	)	(9.5	)	4.9		(74.2	)	unfav		92
Operating profit - GAAP	$	61.7		5.4		(5.6	)	(8.9	)	52.6		(15	)	9	$	52.6		(49.5	)	9.1		(13.2	)	(1.0	)	unfav		(94	)

Amounts may not add due to rounding.


(a)	Non-GAAP amounts include the impact of prior year comparable period results for acquired and disposed businesses. GAAP results also include the impact of acquisition-related intangible amortization, restructuring and other charges, and disposition-related gains/losses.

(b)

The amounts in the “Currency” column consist of ~~the effects of Venezuela devaluations prior to deconsolidation,~~ the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. Monthly currency changes represent the accumulation throughout the year of the impact on current period results of changes in foreign currency rates from the prior year period.


(c)	Corporate expenses are not allocated to segment results. Corporate expenses include salaries and other costs to manage the global business and to perform activities required by public companies.


(d)	See pages ~~43–44~~44–45 for more information.


(e)	Segment revenues equal our total reported non-GAAP revenues.

Analysis of Segment Results: Second Quarter ~~2019~~2020 versus Second Quarter ~~2018~~2019

North America

Revenues ~~increased 37%~~decreased 21% ($~~118.5~~93.4 million) primarily due to a 19% organic decrease ($82.1 million) and the unfavorable impact of currency exchange rates ($17.3 million) mostly from the Mexican peso, partially offset by the favorable impact of acquisitions ($~~98.7~~6.0 million)~~, including~~. Organic revenue decreased primarily from lower volumes due to the ~~August 2018 Dunbar acquisition,~~COVID-19 pandemic in the United States, Mexico and ~~6% organic growth~~Canada. Operating profit decreased 61% ($~~19.7~~28.5 million) driven by ~~price increases~~an organic decrease ($26.9 million) and ~~volume growth in Mexico and price increases in the U.S. Operating profit increased $20.3 million primarily~~unfavorable currency ($2.0 million). The organic decrease was due to ~~organic growth in Mexico and~~ the ~~U.S. and the favorable~~ impact of ~~acquisitions ($6.9 million), primarily from~~ the ~~Dunbar acquisition. Organic profit growth in Mexico was driven~~COVID-19 pandemic, partially offset by ~~price increases, higher volumes, and labor-related productivity improvements. Organic profit growth in the U.S. was driven by price increases and lower~~ labor ~~costs~~ and other ~~productivity improvements, related to breakthrough initiatives~~operational cost saving actions, as well as government COVID-19 assistance in Canada that offset the impact of revenue declines and ~~Dunbar acquisition synergies.~~delays in executing cost reduction actions.

South America

Revenues decreased 3%29% ($~~8.1~~66.3 million) primarily due to the unfavorable impact of currency exchange rates ($~~62.4~~55.7 million) ~~mostly~~primarily from the Brazilian real and Argentine peso, and ~~Brazilian real,~~an 8% organic decrease ($17.1 million), partially offset by ~~16% organic growth ($37.7 million) and~~ the favorable impact of acquisitions and dispositions ($~~16.6~~6.5 million)~~, primarily from~~. Organic revenue decreased across the ~~January 2019 Rodoban acquisition. The organic growth was driven by inflation-based price increases in Argentina and price increases in Brazil. Operating profit decreased 2% ($1.1 million)~~region due to ~~unfavorable currency ($19.6 million) driven by~~lower volumes due to the ~~Argentine peso,~~COVID-19 pandemic, partially offset by organic growth in Argentina driven by inflation-based price increases. Operating profit was down 26% ($~~15.0~~11.9 million) ~~and~~primarily due to unfavorable currency ($13.3 million), partially offset by the favorable impact of acquisitions and dispositions ($~~3.5~~1.1 million)~~, primarily from~~ and 1% organic growth ($0.3 million). Throughout the ~~Rodoban acquisition. The~~segment, labor and other operational cost saving actions helped to offset the impact of lower revenue due to the COVID-19 pandemic, with organic ~~profit increase was driven by~~ growth in Argentina and ~~Brazil.~~Brazil partially offset by organic decreases in Colombia and Chile.

Rest of World

Revenues ~~decreased 8%~~increased 29% ($~~20.2~~71.4 million) due to the ~~unfavorable~~favorable impact of acquisitions and dispositions ($~~14.7~~136.7 million), ~~primarily related to the disposition of the French airport security services company in the second quarter of 2018,~~partially offset by a 21% organic decrease ($52.6 million) and the unfavorable impact of currency exchange rates ($~~11.8~~12.7 million). The organic decrease was primarily due to lower volumes throughout the region, especially in France, driven by the impact of the COVID-19 pandemic. Operating profit increased 20% ($5.2 million) due to the favorable impact of acquisitions and dispositions ($17.1 million), partially offset by an organic ~~increase~~decrease ($~~6.3~~9.6 million) and unfavorable currency ($2.3 million). The organic ~~increase~~decrease was primarily due to ~~growth in Israel and~~ the ~~United Kingdom. Operating profit was flat due to unfavorable currency ($1.0 million), offset by an organic increase ($1.0 million). The organic increase was primarily related to Israel,~~impact of the ~~United Kingdom and France,~~COVID-19 pandemic, partially offset by ~~a decrease~~labor and other operational cost saving actions. Results were also helped by government COVID-19 assistance in ~~Asia Pacific.~~

several countries that offset the impact of revenue declines and delays in executing cost reduction actions.

Revenues and Operating Profit by Segment: First Half ~~2019~~2020 versus First Half ~~2018~~2019


				Organic		Acquisitions /						% Change							Organic		Acquisitions /						% Change
(In millions)	YTD '18			Change		Dispositions^(a)		Currency^(b)		YTD '19		Total		Organic		YTD '19			Change		Dispositions^(a)		Currency^(b)		YTD '20		Total		Organic
Revenues:
North America	$	644.1		38.8		198.5		(4.4	)	877.0		36		6		$	877.0		(73.6	)	11.0		(21.0	)	793.4		(10	)	(8	)
South America	488.1			67.8		37.2		(137.6	)	455.5		(7	)	14		455.5			0.3		7.2		(106.2	)	356.8		(22	)	—
Rest of World	545.2			5.5		(35.1	)	(28.8	)	486.8		(11	)	1		486.8			(60.8	)	140.6		(18.0	)	548.6		13		(12	)
Segment revenues^(e)	1,677.4			112.1		200.6		(170.8	)	1,819.3		8		7		1,819.3			(134.1	)	158.8		(145.2	)	1,698.8		(7	)	(7	)

Other items not allocated to segments^(d)	51.4			(51.4	)	(0.3	)	—		(0.3	)	unfav		unfav		(0.3		)	—		0.3		—		—		(100	)	—
Revenues - GAAP	$	1,728.8		60.7		200.3		(170.8	)	1,819.0		5		4		$	1,819.0		(134.1	)	159.1		(145.2	)	1,698.8		(7	)	(7	)

Operating profit:
North America	$	46.7		29.1		14.7		(0.1	)	90.4		94		62		$	90.4		(37.5	)	0.6		(2.6	)	50.9		(44	)	(41	)
South America	101.7			20.2		7.6		(41.5	)	88.0		(13	)	20		88.0			11.9		1.6		(26.8	)	74.7		(15	)	14
Rest of World	51.8			(0.5	)	1.0		(2.3	)	50.0		(3	)	(1	)	50.0			(18.1	)	17.1		(2.6	)	46.4		(7	)	(36	)
Segment operating profit	200.2			48.8		23.3		(43.9	)	228.4		14		24		228.4			(43.7	)	19.3		(32.0	)	172.0		(25	)	(19	)
Corporate^(c)	(52.5		)	(5.2	)	—		2.9		(54.8	)	4		10		(54.8		)	23.3		—		(4.2	)	(35.7	)	(35	)	(43	)
Operating profit - non-GAAP	147.7			43.6		23.3		(41.0	)	173.6		18		30		173.6			(20.4	)	19.3		(36.2	)	136.3		(21	)	(12	)

Other items not allocated to segments^(d)	(21.2		)	(21.8	)	(27.7	)	8.1		(62.6	)	unfav		unfav		(62.6		)	(45.2	)	(11.2	)	7.9		(111.1	)	77		72
Operating profit - GAAP	$	126.5		21.8		(4.4	)	(32.9	)	111.0		(12	)	17		$	111.0		(65.6	)	8.1		(28.3	)	25.2		(77	)	(59	)

Amounts may not add due to rounding.

See page 4142 for footnote explanations.

Analysis of Segment Results: First Half ~~2019~~2020 versus First Half ~~2018~~2019

North America

Revenues ~~increased 36%~~decreased 10% ($~~232.9~~83.6 million) primarily due to ~~the favorable impact of the acquisitions~~an 8% organic decrease ($~~198.5~~73.6 million)~~, primarily from the Dunbar acquisition,~~ and ~~6% organic growth ($38.8 million), slightly offset by~~ the unfavorable impact of currency exchange rates ($~~4.4~~21.0 million) ~~primarily~~mostly from the Canadian dollar. Organic revenue growth increased from price and volume growth in Mexico and price increases in the U.S. Operating profit increased $43.7 million primarily due to organic growth in the U.S. and Mexico andMexican peso, partially offset by the favorable impact of acquisitions ($~~14.7~~11.0 million),. Organic revenue decreased primarily from lower volumes due to the ~~Dunbar acquisition. Organic profit growth~~second-quarter impact of the COVID-19 pandemic in the ~~U.S. was~~United States, Mexico and Canada. Operating profit decreased 44% ($39.5 million) driven by ~~price increases~~an organic decrease ($37.5 million) and ~~lower~~unfavorable currency ($2.6 million). The organic decrease was due to the impact of the COVID-19 pandemic, partially offset by labor ~~costs~~ and other ~~productivity improvements, related to breakthrough initiatives~~operational cost saving actions, as well as government COVID-19 assistance in Canada in the second-quarter that offset the impact of revenue declines and ~~Dunbar acquisition synergies. Organic profit growth~~delays in ~~Mexico was driven by price increases, higher volumes, and labor-related productivity improvements.~~executing cost reduction actions.

South America

Revenues decreased 7%22% ($~~32.6~~98.7 million) primarily due to the unfavorable impact of currency exchange rates ($~~137.6~~106.2 million) ~~mostly~~primarily from the Argentine peso and Brazilian real, partially offset by the favorable impact of acquisitions and dispositions ($7.2 million). Organic revenue growth was flat due to organic growth in Argentina driven by inflation-based price increases, offset by lower volumes across the region due to the COVID-19 pandemic. Operating profit was down 15% ($13.3 million) primarily due to unfavorable currency ($26.8 million), partially offset by 14% organic growth ($~~67.8~~11.9 million), including the benefit of labor and other operational cost saving actions, and the favorable impact of acquisitions and dispositions ($~~37.2~~1.6 million)~~, primarily from the Rodoban acquisition.~~. The organic growth was driven by ~~inflation-based price increases in~~ Argentina and ~~price increases in~~ Brazil. ~~Operating profit decreased~~

Rest of World

Revenues increased 13% ($~~13.7~~61.8 million) due to ~~unfavorable currency ($41.5 million) driven by the Argentine peso and Brazilian real, partially offset by organic growth ($20.2 million) and~~ the favorable impact of acquisitions and dispositions ($~~7.6~~140.6 million), ~~primarily from the Rodoban acquisition. The~~partially offset by a 12% organic ~~profit increase was driven by growth in Argentina.~~

~~Rest of World~~

~~Revenues decreased 11%~~decrease ($~~58.4~~60.8 million) ~~due to the unfavorable impact of acquisitions and dispositions ($35.1 million), primarily related to the disposition of the French airport security services company in the second quarter of 2018,~~ and the unfavorable impact of currency exchange rates ($~~28.8 million), partially offset by an organic increase ($5.5~~18.0 million). The organic ~~increase~~decrease was primarily due to ~~growth~~lower volumes throughout the region, especially in ~~Israel, Greece, and Asia Pacific.~~France, driven by the impact of the COVID-19 pandemic. Operating profit decreased 3%7% ($~~1.8~~3.6 million) due to an organic decrease ($18.1 million) and unfavorable currency ($~~2.3 million) and a slight organic decrease ($0.5~~2.6 million), partially offset by the favorable impact of acquisitions and dispositions ($~~1.0~~17.1 million). The organic decrease was primarily due to the impact of the COVID-19 pandemic, partially offset by labor and other operational cost saving actions. Results were also helped by government COVID-19 assistance in several countries in the second-quarter, which offset the impact of revenue declines and delays in executing cost reduction actions.

Income and Expense Not Allocated to Segments

Corporate Expenses


	Three Months Ended June 30,					%		Six Months Ended June 30,					%	Three Months Ended June 30,					%		Six Months Ended June 30,					%
(In millions)	2019			2018		change		2019			2018		change	2020			2019		change		2020			2019		change
General, administrative and other expenses	$	(32.5	)	(20.9	)	56		$	(59.6	)	(52.0	)	15	$	(24.6	)	(32.5	)	(24	)	$	(51.9	)	(59.6	)	(13	)
Foreign currency transaction gains (losses)	(0.3		)	(1.7	)	(82	)	0.6			(2.2	)	fav	(0.9		)	(0.3	)	unfav		(3.6		)	0.6		unfav
Reconciliation of segment policies to GAAP	4.0			0.4		fav		4.2			1.7		fav	16.3			4.0		fav		19.8			4.2		fav
Corporate expenses	$	(28.8	)	(22.2	)	30		$	(54.8	)	(52.5	)	4	$	(9.2	)	(28.8	)	(68	)	$	(35.7	)	(54.8	)	(35	)

Corporate expenses for the first six months of ~~2019 increased $2.3~~2020 decreased $19.1 million versus the prior year period primarily driven by ~~higher share-based compensation expense and increased strategic marketing costs, partially offset by lower security costs, currency transaction gains and~~ a reduction in bad debt expense and Mexico profit sharing plan expense as part of the reconciliation of segment accounting policies to U.S. GAAP, cost savings initiated as a result of the COVID crisis, including lower IT expenses, and lower stock compensation expense. The bad debt expense decrease excludes the impact of the internal loss in our U.S. global services operations described on the next page. These factors were partially offset by foreign currency transaction losses in the current year period versus transaction gains in the prior year period. Corporate expenses include former non-segment and regional management costs, currency transaction gains and losses, costs related to global initiatives and adjustments to reconcile segment accounting policies to U.S. GAAP.

Other Items Not Allocated to Segments


	Three Months Ended June 30,					%		Six Months Ended June 30,					%		Three Months Ended June 30,					%		Six Months Ended June 30,					%
(In millions)	2019			2018		change		2019			2018		change		2020			2019		change		2020			2019		change
Revenues:
Venezuela operations	$	—		25.6		(100	)	$	—		51.4		(100	)
Acquisitions and dispositions	(0.3		)	—		unfav		(0.3		)	—		unfav		—			(0.3	)	(100	)	—			(0.3	)	(100	)
Revenues	$	(0.3	)	25.6		unfav		$	(0.3	)	51.4		unfav		$	—		(0.3	)	(100	)	$	—		(0.3	)	(100	)

Operating profit:
Venezuela operations	$	—		(1.2	)	(100	)	—			2.3		(100	)
Reorganization and Restructuring	(10.6		)	(4.5	)	unfav		(14.1		)	(8.2	)	72		(39.0		)	(10.6	)	unfav		(44.6		)	(14.1	)	unfav
Acquisitions and dispositions	(22.6		)	(7.4	)	unfav		(39.8		)	(13.9	)	unfav		(30.9		)	(22.6	)	37		(50.0		)	(39.8	)	26
Argentina highly inflationary impact	(0.1		)	—		unfav		(4.4		)	—		unfav		(2.8		)	(0.1	)	unfav		(5.2		)	(4.4	)	18
Internal loss															(1.2		)	(2.6	)	(54	)	(10.8		)	(2.6	)	unfav
Reporting compliance	(2.9		)	(1.4	)	unfav		(4.3		)	(1.4	)	unfav		(0.3		)	(0.3	)	—		(0.5		)	(1.7	)	(71	)
Operating profit	$	(36.2	)	(14.5	)	unfav		$	(62.6	)	(21.2	)	unfav		$	(74.2	)	(36.2	)	unfav		$	(111.1	)	(62.6	)	77

The impact of other items not allocated to segments was a loss of ~~$36.2~~$74.2 million in the second quarter of ~~2019~~2020 versus the prior year period loss of ~~$14.5~~$36.2 million. The change was primarily due to higher ~~acquisition-related charges, increased~~ reorganization and restructuring expenses and an increase in costs ~~associated with the creation of a new accounts receivable subledger in the U.S. These costs were partially offset by losses from our Venezuela operations in the prior year quarter~~related to acquisitions and ~~a reduction in reporting compliance costs in the current year period.~~dispositions.

The impact of other items not allocated to segments was a loss of ~~$62.6~~$111.1 million in the first six months of ~~2019~~2020 versus the prior year period loss of ~~$21.2~~$62.6 million. The change was primarily due to higher ~~acquisition-related charges, increased~~ reorganization and restructuring expenses, an increase in costs related to acquisitions and dispositions and net charges recognized in the ~~impact of highly inflationary accounting in Argentina, costs associated with the creation of a new accounts receivable subledger~~current year period related to an internal loss in the U.S. ~~and profits from our Venezuela operations in the prior year period.~~

~~Venezuela operations~~ Prior to the deconsolidation of our Venezuelan subsidiaries effective June 30, 2018, we excluded from our segment results all of our Venezuela operating results due to the Venezuelan government's restrictions that prevented us from repatriating funds. In light of these unique circumstances, our operations in Venezuela have been largely independent of the rest of our global services operations. As a result, the Chief Executive Officer, the Company's Chief Operating Decision maker ("CODM"), assessed segment performance and made resource decisions by segment excluding Venezuela operating results. Additionally, management believed excluding Venezuela from segment results made it possible to more effectively evaluate the company’s performance between periods. These amounts were also excluded from non-GAAP results. Prior to deconsolidation,Venezuela operating results included remeasurement gains and losses on monetary assets and liabilities related to currency devaluations. We recognized remeasurement gains of $2.2 million in the first six months of 2018.

~~Factors considered by management in excluding Venezuela results included:~~

~~Continued inability to repatriate cash to redeploy to other operations or dividend to shareholders,~~

~~Highly inflationary environment,~~

~~Previous fixed exchange rate policy,~~

~~Continued currency devaluations, and~~

~~Difficulty raising prices and controlling costs.~~

Reorganization and Restructuring

~~2016 Restructuring~~

Other Restructurings

Management periodically implements restructuring actions in targeted sections of our business. As a result of these actions, we recognized charges of ~~$2.2 million in the first six months of 2018 and~~ $14.1 million in the first six months of 2019 and $44.6 million in the first six months of 2020, primarily severance ~~costs and charges related to the modification of share-based compensation awards.~~costs. When completed, the current restructuring actions will reduce our workforce by ~~100~~2,300 to ~~200~~2,500 positions and result in ~~approximately $8 million in~~ annualized cost ~~savings.~~savings of $35 million to $40 million. For the ~~current~~ restructuring actions that have not yet been completed, we expect to incur additional costs between $2$5 million and $4$7 million in future periods. These estimates will be updated as management targets additional sections of our business.

Due to the unique circumstances around these charges, they have not been allocated to segment results and are excluded from non-GAAP results. Charges related to the employees, assets, leases and contracts impacted by these restructuring actions were excluded from the segments and corporate expenses as shown in the table below.


	Three Months Ended June 30,					%		Six Months Ended June 30,					%		Three Months Ended June 30,					%		Six Months Ended June 30,					%
(In millions)	2019			2018		change		2019			2018		change		2020			2019		change		2020			2019		change
Reportable Segments:
North America	$	(0.5	)	(0.1	)	unfav		$	(1.5	)	(0.6	)	unfav		$	(11.5	)	(0.5	)	unfav		$	(11.5	)	(1.5	)	unfav
South America	(0.3		)	(0.2	)	50		(0.9		)	(1.0	)	(10	)	(15.1		)	(0.3	)	unfav		(17.0		)	(0.9	)	unfav
Rest of World	(1.9		)	(4.2	)	(55	)	(3.3		)	(6.6	)	(50	)	(11.9		)	(1.9	)	unfav		(15.4		)	(3.3	)	unfav
Total reportable segments	(2.7		)	(4.5	)	(40	)	(5.7		)	(8.2	)	(30	)	(38.5		)	(2.7	)	unfav		(43.9		)	(5.7	)	unfav
Corporate items	(7.9		)	—		unfav		(8.4		)	—		unfav		(0.5		)	(7.9	)	(94	)	(0.7		)	(8.4	)	(92	)
Total	$	(10.6	)	(4.5	)	unfav		$	(14.1	)	(8.2	)	72		$	(39.0	)	(10.6	)	unfav		$	(44.6	)	(14.1	)	unfav

Acquisitions and dispositions Certain acquisition and disposition items that are not considered part of the ongoing activities of the business and are special in nature are consistently excluded from segment and non-GAAP results. These items are described below:

2020 Acquisitions and Dispositions

Transaction costs related to business acquisitions were $16.1 million in the first six months of 2020.

Amortization expense for acquisition-related intangible assets was $16.0 million in the first six months of 2020.

We incurred $13.6 million in integration costs, primarily related to Dunbar and G4S, in the first six months of 2020.

Restructuring costs related to acquisitions were $3.8 million in the first six months of 2020.

2019 Acquisitions and Dispositions

We incurred $17.6 million in integration costs related to Dunbar in the first six months of 2019.

Amortization expense for acquisition-related intangible assets was $13.5 million in the first six months of 2019.

Restructuring costs related to our Dunbar and Rodoban acquisitions were $3.8 million in the first six months of 2019.

Transaction costs related to business acquisitions were $1.9 million in the first six months of 2019.

Compensation expense related to the retention of key Dunbar employees was $1.6 million in the first six months of 2019.

In the first six months of 2019, we recognized $1.3 million in net charges, primarily asset impairment ~~charges~~ and severance costs, related to the exit from our top-up prepaid mobile phone business in Brazil.

~~2018 Acquisitions and Dispositions~~

~~Amortization expense for acquisition-related intangible assets was $7.2 million in the first six months of 2018.~~

~~Severance costs related to our 2017 acquisitions in Argentina, France and Brazil were $3.3 million in the first six months of 2018.~~

~~Transaction costs related to business acquisitions were $2.1 million in the first six months of 2018.~~

Argentina highly inflationary impact Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, Argentine peso-denominated monetary assets and liabilities are now remeasured at each balance sheet date to the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In addition, nonmonetary assets retain a higher historical basis when the currency is devalued. The higher historical basis results in incremental expense being recognized when the nonmonetary assets are consumed. In the first ~~half~~six months of 2020, we recognized $5.2 million in pretax charges related to highly inflationary accounting, including currency remeasurement losses of $3.5 million. In the first six months of 2019, we recognized $4.4 million in pretax charges related to highly inflationary accounting, including currency remeasurement losses of $3.4 million. These amounts are excluded from segment and non-GAAP results.

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 quarter of 2020, we incurred an additional $0.2 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 substantially 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 six months of 2020 for an additional $10.6 million. This estimate will be adjusted in future periods, if needed, as assumptions related to the collectability of these accounts receivable change. At June 30, 2020, we have recorded a $21.6 million allowance on $25.0 million of accounts receivable, or 86%. 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 and non-GAAP results.

Reporting compliance Certain compliance costs (primarily third party expenses) are excluded from ~~the first six months of 2019~~ segment and non-GAAP results. These costs relate to ~~the reconstruction of the accounts receivable subledger in the U.S. global services operations ($2.6 million),~~ the implementation and January 1, 2019 adoption of the new lease accounting standard ($~~1.4 million),~~0.5 million in the first six months of 2020 and $1.4 million in the first six months of 2019). We also incurred $0.3 million in costs related to mitigation of material weaknesses ~~($0.3 million).~~in the first six months of 2019. We did not incur any such costs in the first six months of 2020.

Foreign Operations

We currently serve customers in more than 100 countries, including 4148 countries where we operate subsidiaries.

We are subject to risks customarily associated with doing business in foreign countries, including labor and economic conditions, the imposition of international sanctions, including by the U.S. government, political instability, controls on repatriation of earnings and capital, nationalization, expropriation and other forms of restrictive action by local governments. Changes in the political or economic environments in the countries in which we operate could have a material adverse effect on our business, financial condition and results of operations. The future effects, if any, of these risks are unknown. In April 2019, the U.S. government sanctioned the Venezuela central bank and, as a result, the Company has ceased support of the Venezuela business.

Our international operations conduct a majority of their business in local currencies. Because our financial results are reported in U.S. dollars, they are affected by changes in the value of various local currencies in relation to the U.S. dollar. ~~The recent~~Recent strengthening of the U.S. dollar has reduced our reported U.S. dollar revenues and operating profit and may continue in 2020.

At June 30, 2020, Argentina's economy remains highly inflationary for accounting purposes. At June 30, 2020, we had net monetary assets denominated in Argentine pesos of $25.0 million (including cash of $21.1 million) and net nonmonetary assets of $149.2 million (including $99.8 million of goodwill). At June 30, 2020, we had no equity securities denominated in Argentine pesos.

During September 2019, the ~~remainder~~Argentine government announced currency controls on both companies and individuals. Under the exchange procedures implemented by the central bank, approval is required for many transactions, including dividend repatriation abroad.

We have in the past and may elect in the future to utilize other market mechanisms to convert Argentine pesos into U.S. dollars. Conversions under these other market mechanisms have settled at rates that are generally less favorable than the rates at which we remeasured the financial statements of ~~2019.~~Brink's Argentina. We did not have any such conversions losses in the six months ended June 30, 2020.

Changes in exchange rates may also affect transactions that are denominated in currencies other than the functional currency. From time to time, we use ~~shorter~~short term foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies. At June 30, ~~2019,~~2020, the notional value of our ~~shorter~~short term outstanding foreign currency forward and swap contracts was ~~$146~~$142 million with average contract maturities of approximately one month. These ~~shorter~~short term foreign currency forward and swap contracts primarily offset exposures in the euro, the British pound and the ~~British pound.~~Brazilian real. Additionally, these ~~shorter~~short term contracts are not designated as hedges for accounting purposes, and accordingly, changes in their fair value are recorded immediately in earnings. ~~We recognized gains of $2.5 million on these contracts in the first six months of 2019.~~ At June 30, 2020, the fair value of our short term foreign currency contracts was an asset of approximately $3.9 million and was included in prepaid expenses and other on the condensed consolidated balance sheet. At December 31, 2019, the fair value of these ~~shorter term~~ foreign currency contracts was ~~not significant.~~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:



	Three Months Ended June 30,					Six Months Ended June 30,
(In millions)	2020			2019		2020			2019

Derivative instrument gains (losses) included in other operating income (expense)	$	2.6		(1.4	)	$	3.9		2.5

Derivative instrument gains (losses) included in other nonoperating income (expense)^(a)	(0.4		)	—		(8.1		)	—


(a)	Represents loss on foreign currency forward contracts related to 2020 acquisition of business operations from G4S.

We also have a ~~longer~~long term cross currency swap contract to hedge exposure in Brazilian real, which is designated as a cash flow hedge for accounting purposes. At June 30, ~~2019,~~2020, the notional value of this ~~longer~~long term contract was ~~$142~~$110 million with a weighted-average maturity of approximately ~~2.5~~2.1 years. We recognized net losses of $1.3 million on this contract, of which gains of $1.4 million were included in other operating income (expense) to offset transaction losses of $1.4 million and expenses of $2.7 million were included in interest expense in the first six months of 2019. At June 30, ~~2019,~~2020, the fair value of the ~~longer~~long term cross currency swap contract was a ~~$1.3~~$29.2 million net ~~liability,~~asset, of which $3.9 million is included in prepaid expenses and other and $25.3 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 ~~$3.2~~$4.9 million asset is included in other assets and a ~~$4.5~~$2.8 million liability is included in accrued liabilities on the condensed consolidated balance sheet.

~~See Note 1~~

Amounts under this contract were recognized in other operating income (expense) to ~~the condensed consolidated financial statements for a description of government currency processes~~offset transaction gains or losses and ~~restrictions~~ in ~~Venezuela, the effect on our operations, and how we accounted for currency remeasurement for Venezuelan subsidiaries, prior to deconsolidation effective June 30, 2018 under the heading, "Venezuela".~~ interest expense as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
(In millions)	2020			2019		2020			2019

Derivative instrument gains (losses) included in other operating income (expense)	$	3.7		(2.4	)	$	29.8		1.4

Offsetting transaction gains (losses)	(3.7		)	2.4		(29.8		)	(1.4	)

Derivative instrument gains (losses) included in interest expense	(0.3		)	(1.3	)	(1.0		)	(2.7	)

Net gain (loss) on derivative instrument	3.4			(3.7	)	28.8			(1.3	)

See Note 1 to the condensed consolidated financial statements for a description of how we account for currency remeasurement for Argentine subsidiaries, beginning July 1, 2018 under the heading, "Argentina".

Other Operating Income (Expense)

Other operating income (expense) includes amounts included in segment results as well as income and expense not allocated to segments.


	Three Months Ended June 30,					%		Six Months Ended June 30,					%		Three Months Ended June 30,					%		Six Months Ended June 30,					%
(In millions)	2019			2018		change		2019			2018		change		2020			2019		change		2020			2019		change
Foreign currency items:
Transaction gains (losses)	$	1.7		(7.7	)	fav		$	(5.2	)	(3.3	)	58		$	(5.3	)	1.7		unfav		$	(10.9	)	(5.2	)	unfav
Derivative instrument gains (losses)	(1.4		)	5.5		unfav		2.5			3.4		(26	)	2.6			(1.4	)	fav		3.9			2.5		56
Gains on sale of property and other assets	1.1			0.1		fav		1.2			0.5		fav
Gains (losses) on sale of property and other assets															0.1			1.1		(91	)	(0.2		)	1.2		unfav
Impairment losses	(0.4		)	(0.9	)	(56	)	(1.6		)	(2.7	)	(41	)	(2.9		)	(0.4	)	unfav		(4.9		)	(1.6	)	unfav
Share in earnings of equity affiliates	0.3			0.3		—		0.5			1.4		(64	)	0.2			0.3		(33	)	0.2			0.5		(60	)
Royalty income	1.3			1.3		—		2.5			1.8		39		1.1			1.3		(15	)	2.3			2.5		(8	)
Other gains (losses)	(0.9		)	0.1		unfav		(0.4		)	—		unfav		0.7			(0.9	)	fav		1.0			(0.4	)	fav
Other operating income (expense)	$	1.7		(1.3	)	fav		$	(0.5	)	1.1		unfav		$	(3.5	)	1.7		unfav		$	(8.6	)	(0.5	)	unfav

Other operating income (expense) was ~~$1.7~~$(3.5) million of ~~income~~expense in the second quarter of ~~2019~~2020 versus ~~$1.3 million of expense in the prior year period. The change from the prior year quarter was primarily due to higher net foreign currency item gains in the second quarter of 2019.~~

~~Other operating income (expense) was $0.5 million of expense in the first six months of 2019 versus $1.1~~1.7 million of income in the prior year period. The change from the prior year quarter was primarily due to ~~higher net~~ foreign currency ~~item~~losses in the second quarter of 2020 and higher impairment losses in the current year period.

Other operating income (expense) was $8.6 million of expense in the first six months of 2020 versus $0.5 million of expense in the prior year period. The change from the prior year period was primarily due to higher foreign currency losses in the first ~~half~~six months of ~~2019, primarily as a result of currency remeasurement~~2020 and higher impairment losses in ~~Argentina under highly inflationary accounting, partially offset by lower impairment losses.~~

the current year period.

Nonoperating Income and Expense

Interest expense


	Three Months Ended June 30,			%	Six Months Ended June 30,			%	Three Months Ended June 30,			%	Six Months Ended June 30,			%
(In millions)	2019		2018	change	2019		2018	change	2020		2019	change	2020		2019	change
Interest expense	$	22.7	15.8	44	$	45.7	30.8	48	$	23.2	22.7	2	$	43.2	45.7	(5	)

Interest expense was higher in the second quarter of ~~2019~~2020 compared to the prior year period primarily due to higher borrowing levels due to business acquisitions.

Interest expense was ~~higher~~lower in the first ~~half~~six months of ~~2019~~2020 compared to the prior year period primarily due to ~~higher borrowing~~lower short-term borrowings as well as lower interest rate levels ~~due to business acquisitions.~~

~~Loss~~ on ~~deconsolidation of Venezuela operations~~

Three Months
Ended June 30, % Six Months
Ended June 30, %
(In millions)
2019 2018 change 2019 2018 change
Loss on deconsolidation of Venezuela operations $ —
126.7
(100 ) $ —
126.7
(100 )

~~See Note 1 to the condensed consolidated financial statements for more information about the loss on deconsolidation of our Venezuelan operations.~~

variable rate long-term debt.

Interest and other nonoperating income (expense)


	Three Months Ended June 30,					%		Six Months Ended June 30,					%		Three Months Ended June 30,					%		Six Months Ended June 30,					%
(In millions)	2019			2018		change		2019			2018		change		2020			2019		change		2020			2019		change
Interest income	$	1.1		2.1		(48	)	$	2.3		4.1		(44	)	$	1.6		1.1		45		$	2.7		2.3		17
Gain on equity securities	—			1.5		(100	)	—			1.5		(100	)	5.9			—		fav		3.4			—		fav
Foreign currency transaction losses^(a)	—			(12.6	)	(100	)	—			(15.5	)	(100	)
Foreign currency transaction gains (losses)															0.1			—		fav		(0.1		)	—		unfav
Derivative instrument losses^(a)															(0.4		)	—		unfav		(8.1		)	—		unfav
Retirement benefit cost other than service cost	(7.8		)	(10.0	)	(22	)	(17.5		)	(21.7	)	(19	)	(9.2		)	(7.8	)	18		(18.3		)	(17.5	)	5
Non-income taxes on intercompany billings^(b)	(0.8		)	(0.3	)	unfav		(1.8		)	(0.6	)	unfav		(0.7		)	(0.8	)	(13	)	(1.6		)	(1.8	)	(11	)
Venezuela operations^(c)	(0.4		)	—		unfav		(0.9		)	—		unfav		—			(0.4	)	(100	)	—			(0.9	)	(100	)
Gain on lease termination^(d)	5.2			—		fav		5.2			—		fav		—			5.2		(100	)	—			5.2		(100	)
Gain on a disposition of a subsidiary^(e)	—			10.3		(100	)	—			10.3		(100	)
Gain on disposition of subsidiary^(e)															—			—		—		4.7			—		fav
Other	(0.4		)	0.9		unfav		(1.6		)	0.7		unfav		(0.3		)	(0.4	)	(25	)	(1.3		)	(1.6	)	(19	)
Interest and other nonoperating income (expense)	$	(3.1	)	(8.1	)	(62	)	$	(14.3	)	(21.2	)	(33	)	$	(3.0	)	(3.1	)	(3	)	$	(18.6	)	(14.3	)	30


(a)	~~Prior to the July 1, 2018 highly inflationary designation for accounting purposes,~~Represents loss on foreign currency ~~transaction losses incurred by Brink's Argentina~~forward contracts related to ~~its U.S. dollar-denominated payables to the sellers~~acquisition of ~~Maco Transporatadora and Maco Litoral.~~business operations from G4S.


(b)	Certain of our Latin American subsidiaries incur non-income taxes related to the billing of intercompany charges. These intercompany charges do not impact South American segment results and are eliminated in our consolidation.


(c)	Charges incurred for providing financial support to Brink's Venezuelan subsidiaries after the June 30, 2018 deconsolidation. We do not expect any future funding of the Venezuela business, as long as current U.S. sanctions remain in effect.


(d)	Gain on termination of a mining lease obligation related to former coal operations. We have no remaining mining leases.


(e)	Gain on the sale of our former French ~~airport~~ security services subsidiary in the ~~second~~first quarter of ~~2018.~~2020.

Income Taxes


	Three Months Ended June 30,					Six Months Ended June 30,					Three Months Ended June 30,					Six Months Ended June 30,
	2019			2018		2019			2018		2020			2019		2020			2019
Continuing operations
Provision for income taxes (in millions)	$	12.7		18.6		$	22.4		30.0
Provision (benefit) for income taxes (in millions)											$	(43.2	)	12.7		$	(55.4	)	22.4
Effective tax rate	47.4		%	(20.9	)%	43.9		%	(57.5	%)	158.8		%	47.4	%	151.4		%	43.9	%

Effective Tax Rate

Our effective tax rate may fluctuate materially from these estimates due to changes in pre-tax earnings, permanent book-tax differences, changes in the expected amount and geographical mix of earnings, changes in current or deferred taxes due to legislative changes, changes in valuation allowances or accruals for contingencies, changes in distributions of share-based payments, changes in U.S. taxable income, changes in guidance and additional legislative changes related to the Tax Reform Act, and other factors.

Noncontrolling Interests


	Three Months Ended June 30,			%	Six Months Ended June 30,			%		Three Months Ended June 30,			%	Six Months Ended June 30,			%
(In millions)	2019		2018	change	2019		2018	change		2020		2019	change	2020		2019	change
Net income attributable to noncontrolling interests	$	1.5	0.3	unfav	$	2.3	3.5	(34	)	$	2.3	1.5	53	$	3.3	2.3	43

The change ~~from $0.3 million~~in net income attributable to noncontrolling interests in the ~~second quarter of 2018 to $1.5 million of net income~~three months and six months ended June 30, 2020 from prior periods is primarily attributable to ~~noncontrolling interests~~the G4S acquisitions that closed in the second quarter of ~~2019 was primarily due to the deconsolidation of our Venezuelan subsidiaries effective June 30, 2018, and the acquisition of the Colombian noncontrolling interests in the fourth quarter of 2018.~~2020.

The change from $3.5 million net income attributable to noncontrolling interests in the first six months of 2018 to $2.3 million of net income attributable to noncontrolling interests in the first six months of 2019 was primarily due to the deconsolidation of our Venezuelan subsidiaries effective June 30, 2018, and the acquisition of the Colombian noncontrolling interests in the fourth quarter of 2018.

~~See Note 1 to the condensed consolidated financial statements for more information about the deconsolidation of our Venezuelan subsidiaries.~~

Non-GAAP Results Reconciled to GAAP

Non-GAAP results described in this filing are financial measures that are not required by or presented in accordance with GAAP. The purpose of the non-GAAP results is to report financial information from the primary operations of our business by excluding the effects of certain income and expenses that do not reflect the ordinary earnings of our operations. The specific items excluded have not been allocated to segments, are described in detail on pages ~~43–44,~~44–45, and are reconciled to comparable GAAP measures below.

Non-GAAP results adjust the quarterly non-GAAP tax rates so that the non-GAAP tax rate in each of the quarters is equal to the full-year estimated non-GAAP tax rate. The full-year non-GAAP tax rate in both years excludes certain pretax and income tax amounts. Amounts reported for prior periods have been updated in this report to present information consistently for all periods presented.

The Non-GAAP financial measures are intended to provide investors with a supplemental comparison of our operating results and trends for the periods presented. Our management believes these measures are also useful to investors as they allow investors to evaluate our performance using the same metrics that our management uses to evaluate past performance and prospects for future performance. We do not consider these items to be reflective of our core operating performance due to the variability of such items from period-to-period in terms of size, nature and significance. Additionally, non-GAAP results are utilized as performance measures in certain management incentive compensation plans.

Non-GAAP results should not be considered as an alternative to revenue, income or earnings per share amounts determined in accordance with GAAP and should be read in conjunction with their GAAP counterparts.


	YTD '19						YTD '18							YTD '20							YTD '19
(In millions, except for percentages)	Pre-tax			Tax	Effective tax rate		Pre-tax			Tax		Effective tax rate		Pre-tax			Tax		Effective tax rate		Pre-tax			Tax	Effective tax rate
Effective Income Tax Rate^(a)
GAAP	$	51.0		22.4	43.9	%	$	(52.2	)	30.0		(57.5	)%	$	(36.6	)	(55.4	)	151.4	%	$	51.0		22.4	43.9	%
Retirement plans^(d)	14.9			3.5			16.9			3.9				15.8			3.7				14.9			3.5
Venezuela operations^(f)(e)	0.9			—			0.6			(3.9	)			—			—				0.9			—
Reorganization and Restructuring^(b)	14.1			3.6			8.2			2.7				44.6			10.3				14.1			3.6
Acquisitions and dispositions^(b)	42.8			2.8			19.6			9.3				54.5			5.7				42.8			2.8
Tax on accelerated income^(e)	—			—			—			0.3
Argentina highly inflationary impact^(b)	4.4			—			—			—				5.2			(0.5	)			4.4			—
Internal loss^(b)														10.8			2.5				2.6			0.1
Reporting compliance^(b)	4.3			0.1			1.4			0.3				0.5			—				1.7			—
Gain on lease termination^(g)(f)	(5.2		)	—			—			—				—			—				(5.2		)	—
Loss on deconsolidation of Venezuela operations^(f)	—			—			126.7			—
Income tax rate adjustment^(c)	—			9.6			—			(1.1	)			—			69.3				—			7.6
Non-GAAP	$	127.2		42.0	33.0	%	$	121.2		41.5		34.2	%	$	94.8		35.6		37.5	%	$	127.2		40.0	31.4	%

Amounts may not add due to rounding.


(a)	From continuing operations.


(b)	See “Other Items Not Allocated To Segments” on pages ~~43–44~~44–45 for details. We do not consider these items to be reflective of our core operating performance due to the variability of such items from period-to-period in terms of size, nature and significance.


(c)	Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at ~~33.0%~~37.5% for ~~2019~~2020 and was ~~34.2%~~31.4% for ~~2018.~~2019.


(d)	Our U.S. retirement plans are frozen and costs related to these plans are excluded from non-GAAP results. Certain non-U.S. operations also have retirement plans. Settlement charges related to these non-U.S. plans are also excluded from non-GAAP results.


(e)	~~The non-GAAP tax rate excludes the 2018 foreign tax benefit that resulted from the transaction that accelerated U.S. tax in 2015.~~

~~(f)~~

~~Effective June 30, 2018, we deconsolidated our investment in Venezuelan subsidiaries and recognized a pretax charge of $126.7 million.~~ Post-deconsolidation funding of ongoing costs related to our Venezuelan operations was $0.9 million in ~~the first six months of~~ 2019 and was expensed as incurred and reported in interest and other nonoperating income (expense). We do not expect any future funding of the Venezuela business, as long as current U.S. sanctions remain in effect.


~~(g)~~(f)	Gain on settlement of a mining lease obligation related to former coal operations. We have no remaining mining leases.


~~(h)~~	Because we reported a loss from continuing operations on a GAAP basis in the second quarter of 2018, GAAP EPS was calculated using basic shares. However, as we reported income from continuing operations on a non-GAAP basis in the second quarter of 2018, non-GAAP EPS was calculated using diluted shares.

Non-GAAP Results Reconciled to GAAP


	Three Months Ended June 30,					Six Months Ended June 30,				Three Months Ended June 30,					Six Months Ended June 30,
(In millions, except for percentages and per share amounts)	2019			2018		2019		2018		2020			2019		2020			2019
Revenues:
GAAP	$	914.0		849.7		1,819.0		1,728.8		$	826.0		914.0		$	1,698.8		1,819.0
Venezuela operations^(b)	—			(25.6	)	—		(51.4	)
Acquisitions and dispositions^(b)	0.3			—		0.3		—		—			0.3		—			0.3
Non-GAAP	$	914.3		824.1		1,819.3		1,677.4		$	826.0		914.3		$	1,698.8		1,819.3

Operating profit:
GAAP	$	52.6		61.7		111.0		126.5		$	(1.0	)	52.6		$	25.2		111.0
Venezuela operations^(b)	—			1.2		—		(2.3	)
Reorganization and Restructuring^(b)	10.6			4.5		14.1		8.2		39.0			10.6		44.6			14.1
Acquisitions and dispositions^(b)	22.6			7.4		39.8		13.9		30.9			22.6		50.0			39.8
Argentina highly inflationary impact^(b)	0.1			—		4.4		—		2.8			0.1		5.2			4.4
Internal loss^(b)										1.2			2.6		10.8			2.6
Reporting compliance^(b)	2.9			1.4		4.3		1.4		0.3			0.3		0.5			1.7
Non-GAAP	$	88.8		76.2		173.6		147.7		$	73.2		88.8		$	136.3		173.6

Operating margin:
GAAP margin	5.8		%	7.3	%	6.1	%	7.3	%	(0.1		)%	5.8	%	1.5		%	6.1	%
Non-GAAP margin	9.7		%	9.2	%	9.5	%	8.8	%	8.9		%	9.7	%	8.0		%	9.5	%

Interest expense:
GAAP	$	(22.7	)	(15.8	)	(45.7	)	(30.8	)	$	(23.2	)	(22.7	)	$	(43.2	)	(45.7	)
Venezuela operations^(b)	—			0.1		—		0.1
Acquisitions and dispositions^(b)	1.5			0.2		3.0		0.4		0.3			1.5		1.0			3.0
Non-GAAP	$	(21.2	)	(15.5	)	(42.7	)	(30.3	)

Loss on deconsolidation of Venezuela operations:
GAAP	$	—		(126.7	)	—		(126.7	)
Loss on deconsolidation of Venezuela operations^(f)	—			126.7		—		126.7
Non-GAAP	$	—		—		—		—		$	(22.9	)	(21.2	)	$	(42.2	)	(42.7	)

Interest and other nonoperating income (expense):
GAAP	$	(3.1	)	(8.1	)	(14.3	)	(21.2	)	$	(3.0	)	(3.1	)	$	(18.6	)	(14.3	)
Retirement plans^(d)	6.5			8.1		14.9		16.9		8.1			6.5		15.8			14.9
Venezuela operations^(b)(f)	0.4			0.9		0.9		2.8
Venezuela operations^(e)										—			0.4		—			0.9
Acquisitions and dispositions^(b)	—			2.4		—		5.3		0.5			—		3.5			—
Gain on lease termination^(g)	(5.2		)	—		(5.2	)	—		—			(5.2	)	—			(5.2	)
Non-GAAP	$	(1.4	)	3.3		(3.7	)	3.8		$	5.6		(1.4	)	$	0.7		(3.7	)

Provision for income taxes:
GAAP	$	12.7		18.6		22.4		30.0		$	(43.2	)	12.7		$	(55.4	)	22.4
Retirement plans^(d)	1.6			2.0		3.5		3.9		1.9			1.6		3.7			3.5
Venezuela operations^(b)	—			(2.4	)	—		(3.9	)
Reorganization and Restructuring^(b)	2.6			1.5		3.6		2.7		9.0			2.6		10.3			3.6
Acquisitions and dispositions^(b)	1.1			6.2		2.8		9.3		3.6			1.1		5.7			2.8
Tax on accelerated income^(e)	—			(0.2	)	—		0.3
Reporting compliance^(b)	0.1			0.3		0.1		0.3
Argentina highly inflationary impact^(b)										(0.3		)	—		(0.5		)	—
Internal loss^(b)										0.3			0.1		2.5			0.1
Income tax rate adjustment^(c)	3.8			(4.1	)	9.6		(1.1	)	49.7			2.7		69.3			7.6
Non-GAAP	$	21.9		21.9		42.0		41.5		$	21.0		20.8		$	35.6		40.0

Amounts may not add due to rounding.

See page 50 for footnote explanations.



	Three Months Ended June 30,					Six Months Ended June 30,
(In millions, except for percentages and per share amounts)	2020			2019		2020			2019
Net income (loss) attributable to noncontrolling interests:
GAAP	$	2.3		1.5		$	3.3		2.3
Reorganization and Restructuring^(b)	—			—		0.1			—
Acquisitions and dispositions^(b)	0.1			—		0.1			—
Income tax rate adjustment^(c)	(1.6		)	—		(2.0		)	—
Non-GAAP	$	0.8		1.5		$	1.5		2.3

Income (loss) from continuing operations attributable to Brink's:
GAAP	$	13.7		12.6		$	15.5		26.3
Retirement plans^(d)	6.2			4.9		12.1			11.4
Venezuela operations^(e)	—			0.4		—			0.9
Reorganization and Restructuring^(b)	30.0			8.0		34.2			10.5
Acquisitions and dispositions^(b)	28.0			23.0		48.7			40.0
Argentina highly inflationary impact^(b)	3.1			0.1		5.7			4.4
Internal loss^(b)	0.9			2.5		8.3			2.5
Reporting compliance^(b)	0.3			0.3		0.5			1.7
Gain on lease termination^(g)	—			(5.2	)	—			(5.2	)
Income tax rate adjustment^(c)	(48.1		)	(2.7	)	(67.3		)	(7.6	)
Non-GAAP	$	34.1		43.9		$	57.7		84.9

Diluted EPS:
GAAP	$	0.27		0.25		$	0.30		0.52
Retirement plans^(d)	0.12			0.10		0.24			0.22
Venezuela operations^(e)	—			0.01		—			0.02
Reorganization and Restructuring^(b)	0.59			0.16		0.67			0.21
Acquisitions and dispositions^(b)	0.55			0.45		0.95			0.79
Argentina highly inflationary impact^(b)	0.06			—		0.11			0.09
Internal loss^(b)	0.02			0.05		0.16			0.05
Reporting compliance^(b)	0.01			0.01		0.01			0.03
Gain on lease termination^(g)	—			(0.10	)	—			(0.10	)
Income tax rate adjustment^(c)	(0.94		)	(0.05	)	(1.31		)	(0.15	)
Non-GAAP	$	0.67		0.86		$	1.13		1.67

Amounts may not add due to rounding.

See page ~~48 for footnote explanations.~~

Three Months
Ended June 30, Six Months
Ended June 30,
(In millions, except for percentages and per share amounts) 2019 2018 2019 2018
Net income (loss) attributable to noncontrolling interests:
GAAP $ 1.5
0.3
2.3
3.5
Venezuela operations^(b)
—
1.6
—
1.0
Reorganization and Restructuring^(b)
—
(0.1 ) —
(0.1 )
Income tax rate adjustment^(c)
—
(0.1 ) —
(0.5 )
Non-GAAP $ 1.5
1.7
2.3
3.9

Income (loss) from continuing operations attributable to Brink's:
GAAP $ 12.6
(107.8 ) 26.3
(85.7 )
Retirement plans^(d)
4.9
6.1
11.4
13.0
Venezuela operations^(b)(f)
0.4
3.0
0.9
3.5
Reorganization and Restructuring^(b)
8.0
3.1
10.5
5.6
Acquisitions and dispositions^(b)
23.0
3.8
40.0
10.3
Tax on accelerated income^(e)
—
0.2
—
(0.3 )
Argentina highly inflationary impact^(b)
0.1
—
4.4
—
Reporting compliance^(b)
2.8
1.1
4.2
1.1
Gain on lease termination^(g)
(5.2 ) —
(5.2 ) —
Loss on deconsolidation of Venezuela operations^(f)
—
126.7
—
126.7
Income tax rate adjustment^(c)
(3.8 ) 4.2
(9.6 ) 1.6
Non-GAAP $ 42.8
40.4
82.9
75.8

Diluted EPS:
GAAP $ 0.25
(2.11 ) 0.52
(1.68 )
Retirement plans^(d)
0.10
0.12
0.22
0.25
Venezuela operations^(b)(f)
0.01
0.06
0.02
0.07
Reorganization and Restructuring^(b)
0.16
0.06
0.21
0.11
Acquisitions and dispositions^(b)
0.45
0.07
0.79
0.20
Tax on accelerated income^(e)
—
—
—
(0.01 )
Argentina highly inflationary impact^(b)
—
—
0.09
—
Reporting compliance^(b)
0.06
0.02
0.08
0.02
Gain on lease termination^(g)
(0.10 ) —
(0.10 ) —
Loss on deconsolidation of Venezuela operations^(f)
—
2.43
—
2.43
Income tax rate adjustment^(c)
(0.07 ) 0.08
(0.19 ) 0.03
Share adjustment^(h)
—
0.04
—
0.04
Non-GAAP $ 0.84
0.78
1.63
1.45

~~Amounts may not add due to rounding.~~

~~See page 48~~50 for footnote explanations.

LIQUIDITY AND CAPITAL RESOURCES

Overview

Cash flows from operating activities decreased by ~~$85.2~~$83.9 million in the first six months of ~~2019~~2020 as compared to the first six months of ~~2018.~~2019. Cash used for investing activities increased by ~~$135.3~~$227.1 million in the first six months of ~~2019~~2020 compared to the first six months of ~~2018.~~2019. We financed our liquidity needs in the first six months of ~~2019~~2020 with cash flows from ~~long term~~long-term debt.

Operating Activities


	Six Months Ended June 30,					$		Six Months Ended June 30,					$
(In millions)	2019			2018		change		2020			2019		change
Cash flows from operating activities
Operating activities - GAAP	$	23.9		109.1		(85.2	)	$	(60.0	)	23.9		(83.9	)
Venezuela operations	—			(0.4	)	0.4
(Increase) decrease in restricted cash held for customers	29.5			(4.4	)	33.9		(5.3		)	29.5		(34.8	)
(Increase) decrease in certain customer obligations^(a)	(7.0		)	(5.7	)	(1.3	)	11.3			(7.0	)	18.3
Operating activities - non-GAAP	$	46.4		98.6		(52.2	)	$	(54.0	)	46.4		(100.4	)

(a)

To adjust for the change in the balance of customer obligations related to cash received and processed in certain of our secure cash management services operations. The title to this cash transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the management of our liquidity and capital resources.

Non-GAAP cash flows from operating activities is a supplemental financial measure that is not required by, or presented in accordance with, GAAP. The purpose of this non-GAAP measure is to report financial information excluding ~~cash flows from Venezuela operations prior to the deconsolidation,~~ restricted cash held for customers and the impact of cash received and processed in certain of our secure cash management services operations. We believe this measure is helpful in assessing cash flows from operations, enables period-to-period comparability and is useful in predicting future operating cash flows. This non-GAAP measure should not be considered as an alternative to cash flows from operating activities determined in accordance with GAAP and should be read in conjunction with our condensed consolidated statements of cash flows.

GAAP

Cash flows from operating activities decreased by ~~$85.2~~$83.9 million in the first six months of ~~2019~~2020 compared to the same period in ~~2018.~~2019. The decrease was attributed to the ~~$33.9~~decrease in operating profit, changes in working capital, and changes in customer obligations related to certain of our secure cash management services operations (cash held for customers decreased by $11.3 million ~~decrease~~in 2020 compared to an increase of $7 million in 2019), offset by the $34.8 million increase in restricted cash held for ~~customers, higher amounts paid for interest, and changes in working capital, partially offset by lower amounts paid for taxes.~~customers.

Non-GAAP

Non-GAAP cash flows from operating activities decreased by ~~$52.2~~$100.4 million in the first six months of ~~2019~~2020 as compared to the same period in ~~2018.~~2019. The decrease was ~~primarily due~~attributed to ~~higher amounts paid for interest~~the decrease in operating profit and changes in working ~~capital, partially offset by lower amounts paid for taxes.~~capital.

Investing Activities


	Six Months Ended June 30,					$		Six Months Ended June 30,					$
(In millions)	2019			2018		change		2020			2019		change
Cash flows from investing activities
Capital expenditures	$	(73.1	)	(73.3	)	0.2		$	(53.9	)	(73.1	)	19.2
Acquisitions, net of cash acquired	(167.0		)	—		(167.0	)	(408.4		)	(167.0	)	(241.4	)
Dispositions, net of cash disposed	—			9.6		(9.6	)	(3.1		)	—		(3.1	)
Marketable securities:
Purchases	(2.2		)	(50.1	)	47.9		(1.2		)	(2.2	)	1.0
Sales	0.8			5.5		(4.7	)	0.6			0.8		(0.2	)
Proceeds from sale of property and equipment	1.9			1.8		0.1		1.4			1.9		(0.5	)
Other	(3.1		)	(0.9	)	(2.2	)
Acquisition of customer contracts								(5.2		)	(3.1	)	(2.1	)
Investing activities	$	(242.7	)	(107.4	)	(135.3	)	$	(469.8	)	(242.7	)	(227.1	)

Cash used by investing activities increased by ~~$135.3~~$227.1 million in the first six months of ~~2019~~2020 versus the first six months of ~~2018.~~2019. The increase was primarily due to the ~~$167 million~~G4S acquisition in ~~cash paid, net of cash acquired, for the acquisitions in Brazil and the U.S., partially offset by lower purchases of marketable securities during the first six months of 2019.~~2020.

Capital expenditures and depreciation and amortization were as follows:


	Six Months Ended June 30,			$		Full Year	Six Months Ended June 30,			$		Full Year
(In millions)	2019		2018	change		2018	2020		2019	change		2019
Property and equipment acquired during the period
Capital expenditures:^(a)
North America	$	33.6	30.3	3.3		59.1	$	21.7	33.6	(11.9	)	76.6
South America	19.8		22.4	(2.6	)	43.3	10.6		19.8	(9.2	)	44.4
Rest of World	13.8		13.4	0.4		37.9	18.5		13.8	4.7		33.5
Corporate	5.9		7.2	(1.3	)	14.8	3.1		5.9	(2.8	)	10.3
Capital expenditures - GAAP and non-GAAP	$	73.1	73.3	(0.2	)	155.1	$	53.9	73.1	(19.2	)	164.8

Financing leases:^(b)
North America	$	26.3	21.9	4.4		42.3	$	18.4	26.3	(7.9	)	51.8
South America	0.9		5.6	(4.7	)	9.6	0.5		0.9	(0.4	)	3.7
Rest of World	3.3		—	3.3		—	0.5		3.3	(2.8	)	4.2
Financing leases - GAAP and non-GAAP	$	30.5	27.5	3.0		51.9	$	19.4	30.5	(11.1	)	59.7

Total:
North America	$	59.9	52.2	7.7		101.4	$	40.1	59.9	(19.8	)	128.4
South America	20.7		28.0	(7.3	)	52.9	11.1		20.7	(9.6	)	48.1
Rest of World	17.1		13.4	3.7		37.9	19.0		17.1	1.9		37.7
Corporate	5.9		7.2	(1.3	)	14.8	3.1		5.9	(2.8	)	10.3
Total property and equipment acquired	$	103.6	100.8	2.8		207.0	$	73.3	103.6	(30.3	)	224.5

Depreciation and amortization^(a)
North America	$	42.3	32.3	10.0		72.1	$	40.2	42.3	(2.1	)	81.1
South America	14.0		13.5	0.5		26.3	13.1		14.0	(0.9	)	27.9
Rest of World	17.3		16.1	1.2		31.3	21.2		17.3	3.9		32.3
Corporate	5.6		6.3	(0.7	)	11.9	4.4		5.6	(1.2	)	10.8
Depreciation and amortization - non-GAAP	$	79.2	68.2	11.0		141.6	$	78.9	79.2	(0.3	)	152.1
Venezuela	—		1.1	(1.1	)	1.1
Argentina highly inflationary impact	0.5		—	0.5		—	1.4		0.5	0.9		1.8
Reorganization and Restructuring	0.1		1.4	(1.3	)	1.9	0.3		0.1	0.2		0.2
Acquisitions and dispositions	3.3		—	3.3		—	0.5		3.3	(2.8	)	3.1
Amortization of intangible assets	13.5		7.2	6.3		17.7	16.0		13.5	2.5		27.8
Depreciation and amortization - GAAP	$	96.6	77.9	18.7		162.3	$	97.1	96.6	0.5		185.0

(a)

~~Capital expenditures as well as depreciation and amortization related to Venezuela have been excluded from South America. In addition, incremental~~Incremental depreciation related to highly inflationary accounting in Argentina, accelerated depreciation related to restructuring and acquisition-related integration activities, and amortization of acquisition-related intangible assets have ~~also~~ been excluded from non-GAAP amounts.


(b)	Represents the amount of property and equipment acquired using financing leases. Because the assets are acquired without using cash, the acquisitions are not reflected in the condensed consolidated cash flow statement. Amounts are provided here to assist in the comparison of assets acquired in the current year versus prior years.

Non-GAAP capital expenditures and non-GAAP depreciation and amortization are supplemental financial measures that are not required by, or presented in accordance with GAAP. The purpose of these non-GAAP measures is to report financial information excluding ~~capital expenditures and depreciation and amortization from our Venezuela operations prior to the deconsolidation,~~ incremental depreciation related to highly inflationary accounting in Argentina, accelerated depreciation from restructuring and acquisition-related integration activities, and amortization of acquisition-related intangible assets. We believe these measures are helpful in assessing capital expenditures and depreciation and amortization, enable period-to-period comparability and are useful in predicting future investing cash flows. These non-GAAP measures should not be considered as alternatives to capital expenditures and depreciation and amortization determined in accordance with GAAP and should be read in conjunction with our condensed consolidated statements of cash flows.

Our reinvestment ratio, which we define as the annual amount of property and equipment acquired during the period divided by the annual amount of depreciation, was 1.3 for the twelve months ending June 30, 2020 compared to 1.4 for the twelve months ending June 30, ~~2019 compared to 1.7 for the twelve months ending June 30, 2018.~~2019.

Capital expenditures in the first six months of ~~2019~~2020 were primarily for machinery and equipment, information technology and armored vehicles.

Financing Activities


	Six Months Ended June 30,					$		Six Months Ended June 30,					$
(In millions)	2019			2018		change		2020			2019		change
Cash flows from financing activities
Borrowings and repayments:
Short-term borrowings	$	0.1		10.5		(10.4	)	$	(1.6	)	0.1		(1.7	)
Cash supply chain customer debt	—			(11.7	)	11.7
Long-term revolving credit facilities, net	(130.6		)	—		(130.6	)	(118.9		)	(130.6	)	11.7
Other long-term debt, net	309.5			(25.9	)	335.4		949.7			309.5		640.2
Borrowings (repayments)	179.0			(27.1	)	206.1		829.2			179.0		650.2

Debt financing costs	(4.0		)	—		(4.0	)	(11.5		)	(4.0	)	(7.5	)
Dividends to:
Shareholders of Brink’s	(14.9		)	(15.2	)	0.3		(15.1		)	(14.9	)	(0.2	)
Noncontrolling interests in subsidiaries	(0.2		)	(1.9	)	1.7		(7.9		)	(0.2	)	(7.7	)
Acquisition-related financing activities:
Payment of acquisition-related obligation	(1.5		)	—		(1.5	)	(6.8		)	(1.5	)	(5.3	)
Proceeds from exercise of stock options	—			0.8		(0.8	)
Tax withholdings associated with share-based compensation	(7.2		)	(11.3	)	4.1		(9.3		)	(7.2	)	(2.1	)
Other	(1.7		)	0.2		(1.9	)	0.8			(1.7	)	2.5
Financing activities	$	149.5		(54.5	)	204.0		$	779.4		149.5		629.9

Debt borrowings and repayments

Cash flows from financing activities increased by ~~$204.0~~$629.9 million in the first six months of ~~2019~~2020 compared to the first six months of ~~2018~~2019 as net borrowings increased compared to the prior ~~year~~six month period.

Dividends

We paid dividends to Brink’s shareholders of $0.30 per share or $15.1 million in the first six months of 2020 compared to $0.30 per share or $14.9 million in the first six months of ~~2019 compared to $0.30 per share or $15.2 million in the first six months of 2018.~~2019. Future dividends are dependent on our earnings, financial condition, shareholders’ equity levels, our cash flow and business requirements, as determined by the Board of Directors.

Reconciliation of Net Debt to U.S. GAAP Measures


	June 30,			December 31,		June 30,			December 31,
(In millions)	2019			2018		2020			2019
Debt:
Short-term borrowings	$	29.2		28.9		$	12.1		14.3
Long-term debt	1,730.3			1,525.1		2,471.3			1,629.3
Total Debt	1,759.5			1,554.0		2,483.4			1,643.6
Restricted cash borrowings^(a)	(10.4		)	(10.5	)	(10.3		)	(10.3	)
Total Debt without restricted cash borrowings	1,749.1			1,543.5		2,473.1			1,633.3

Less:
Cash and cash equivalents	304.9			343.4		531.3			311.0
Amounts held by Cash Management Services operations^(b)	(21.6		)	(14.1	)	(11.6		)	(26.3	)
Cash and cash equivalents available for general corporate purposes	283.3			329.3		519.7			284.7

Net Debt(c)	$	1,465.8		1,214.2		$	1,953.4		1,348.6


(a)	Restricted cash borrowings are related to cash borrowed under lending arrangements used in the process of managing customer cash supply chains, which is currently classified as restricted cash and not available for general corporate purposes.


(b)	Title to cash received and processed in certain of our secure Cash Management Services operations transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the management of our liquidity and capital resources and in our computation of Net Debt.


(c)	Included within Net Debt is net cash from our Argentina operations of $22 million at June 30, 2020 and $17 million at December 31, 2019 (see Note 1 to the condensed consolidated financial statements for a discussion of currency controls in Argentina).

Net Debt is a supplemental non-GAAP financial measure that is not required by, or presented in accordance with GAAP. We use Net Debt as a measure of our financial leverage. We believe that investors also may find Net Debt to be helpful in evaluating our financial leverage. Net Debt should not be considered as an alternative to Debt determined in accordance with GAAP and should be reviewed in conjunction with our condensed consolidated balance sheets. Set forth above is a reconciliation of Net Debt, a non-GAAP financial measure, to Debt, which is the most directly comparable financial measure calculated and reported in accordance with GAAP, as of June 30, ~~2019,~~2020, and December 31, ~~2018.~~ 2019.

Net Debt increased by ~~$252~~$605 million primarily to fund business acquisitions and other working capital needs including insurance and bonus payments.

Liquidity Needs

Our liquidity needs include not only the working capital requirements of our operations but also investments in our operations, business development activities, payments on outstanding debt, dividend payments and share repurchases.

Our liquidity needs are typically financed by cash from operations, short-term debt and the available borrowing capacity under our Revolving Credit Facility (our debt facilities are described in more detail in Note 9 to the condensed consolidated financial statements, including certain limitations and considerations related to the cash and borrowing capacity). As of June 30, ~~2019, $791~~2020, $1,000 million was available under the Revolving Credit Facility. Based on our current cash on hand, cash generated from operations, and amounts available under our credit facilities, we believe that we will be able to meet our liquidity needs for the ~~foreseeable future.~~next twelve months.

Limitations on dividends from foreign subsidiaries. A significant portion of our operations are outside the U.S. which may make it difficult or costly to repatriate cash for use in the U.S. See “Risk Factors” in Item 1A of our annual report on Form 10-K for the year ended December 31, ~~2018,~~2019, for more information on the risks associated with having businesses outside the U.S.

Our conclusion that we will be able to fund our cash requirements for the next 12 months by using existing capital resources, cash on hand, and cash generated from operations does not take into account any potential material worsening of economic conditions as a result of the ongoing COVID-19 pandemic that would adversely affect our business. The anticipated cash needs of our business could change significantly if we pursue and complete additional business acquisitions, if our business plans change, if events, including economic disruptions, arising from the ongoing COVID-19 pandemic worsen, or if other economic conditions change from those currently prevailing or from those now anticipated, or if other unexpected circumstances arise that may have a material effect on the cash flow or profitability of our business, including material negative changes in the health and welfare of our employees or changes in the condition of our customers or suppliers, and the operating performance or financial results of our business. Any of these events or circumstances, including any new business opportunities, could involve significant additional funding needs in excess of the identified currently available sources and could require us to raise additional debt or equity funding to meet those needs. Our ability to raise additional capital, if necessary, is subject to a variety of factors that we cannot predict with certainty, including:

our future profitability;

the quality of our accounts receivable;

our relative levels of debt and equity;

the volatility and overall condition of the capital markets; and

the market prices of our securities.

Equity

~~In December 2018, we entered into an accelerated~~ No shares have been repurchased under the $250 million share repurchase ~~arrangement ("ASR") with a financial institution. In exchange for a $50 million up-front payment at the beginning~~program and, as of the ~~purchase period, the financial institution delivered to us 700,000 shares~~date of our common stock for an average repurchase price of $71.43 per share. The shares received were retired in the period they were delivered to us, and the up-front payment was accounted for as a reduction to shareholders' equity in the condensed consolidated balance sheet. For purposes of calculating earnings perthis filing, we have suspended share we reported the ASR as a repurchase of our common stock in December 2018 and as a forward contract indexed to our common stock. The ASR met all of the applicable criteria for equity classification, and, as a result, was not accounted for as a derivative instrument.

~~The ASR purchase period subsequently ended in February 2019 and we received and retired an additional 37,387 shares~~repurchases under the ~~ASR, resulting in an overall average repurchase price of $67.81 per share.~~

~~During the quarter ended June 30, 2019, no additional shares were repurchased.~~

program.

U.S. Retirement Liabilities

Assumptions for U.S. Retirement Obligations

The amounts in the tables below are based on a variety of estimates, including actuarial assumptions as of the most recent measurement date. The assumptions used to estimate our U.S. retirement obligations can be found in our Annual Report on Form 10-K for the year ended December 31, 2019. The estimated amounts will change in the future to reflect payments made, investment returns, actuarial revaluations, and other changes in estimates. Actual amounts could differ materially from the estimated amounts and will be updated at December 31, 2020.

Our most significant actuarial assumptions include:

Changing discount rates and other assumptions in effect at measurement dates (normally December 31)

Investment returns of plan assets

Addition of new participants (historically immaterial due to freezing of pension benefits and exit from coal business)

Mortality rates

Change in laws

																															Funded Status of U.S. Retirement Plans
	Actual			Actual		Projected										Actual			Actual		Projected
(In millions)	2018			First Half 2019		2nd Half 2019		2020		2021		2022		2023		2019			First Half 2020		2nd Half 2020		2021		2022		2023		2024

Primary U.S. pension plan
Beginning funded status	$	(102.3	)	(106.8	)	(98.3	)	(94.3	)	(81.4	)	(68.0	)	(36.4	)	$	(106.8	)	(118.3	)	(108.4	)	(97.4	)	(75.6	)	(38.6	)	4.0
Net periodic pension credit^(a)	22.0			8.5		8.4		15.7		15.4		15.7		16.6		16.9			9.9		9.9		21.0		22.4		24.0		27.1
Payment from Brink’s	—			—		—		—		—		17.3		28.3		—			—		—		—		14.1		17.6		16.3
Benefit plan experience loss	(26.5		)	—		(4.4	)	(2.8	)	(2.0	)	(1.4	)	(0.1	)
Benefit plan experience gain (loss)																(28.4		)	—		1.1		0.8		0.5		1.0		—
Ending funded status	$	(106.8	)	(98.3	)	(94.3	)	(81.4	)	(68.0	)	(36.4	)	8.4		$	(118.3	)	(108.4	)	(97.4	)	(75.6	)	(38.6	)	4.0		47.4

UMWA plans
Beginning funded status	$	(294.3	)	(297.4	)	(297.8	)	(301.4	)	(309.1	)	(318.0	)	(328.1	)	$	(297.4	)	(246.7	)	(243.8	)	(246.3	)	(247.2	)	(249.0	)	(251.8	)
Net periodic postretirement cost^(a)	(0.4		)	(2.5	)	(1.5	)	(7.7	)	(8.9	)	(10.1	)	(11.5	)	(4.0		)	0.1		0.3		(0.9	)	(1.8	)	(2.8	)	(3.9	)
Benefit plan experience loss	(1.4		)	—		—		—		—		—		—
Benefit plan experience gain (loss)																55.1			—		—		—		—		—		—
Other	(1.3		)	2.1		(2.1	)	—		—		—		—		(0.4		)	2.8		(2.8	)	—		—		—		—
Ending funded status	$	(297.4	)	(297.8	)	(301.4	)	(309.1	)	(318.0	)	(328.1	)	(339.6	)	$	(246.7	)	(243.8	)	(246.3	)	(247.2	)	(249.0	)	(251.8	)	(255.7	)

Black lung plans
Beginning funded status	$	(67.0	)	(67.9	)	(65.5	)	(63.3	)	(58.6	)	(54.3	)	(50.3	)	$	(67.9	)	(99.2	)	(96.6	)	(91.5	)	(84.0	)	(77.1	)	(70.6	)
Net periodic postretirement cost^(a)	(2.5		)	(1.5	)	(1.5	)	(2.4	)	(2.3	)	(2.2	)	(1.9	)	(3.0		)	(1.5	)	(1.6	)	(2.6	)	(2.5	)	(2.2	)	(2.1	)
Payment from Brink’s	8.1			3.9		3.7		7.1		6.6		6.2		5.7		8.4			4.1		6.7		10.1		9.4		8.7		8.1
Benefit plan experience loss	(6.5		)	—		—		—		—		—		—
Benefit plan experience gain (loss)																(36.7		)	—		—		—		—		—		—
Ending funded status	$	(67.9	)	(65.5	)	(63.3	)	(58.6	)	(54.3	)	(50.3	)	(46.5	)	$	(99.2	)	(96.6	)	(91.5	)	(84.0	)	(77.1	)	(70.6	)	(64.6	)


(a)	Excludes amounts reclassified from accumulated other comprehensive income (loss).

Primary U.S. Pension Plan

Pension benefits provided to eligible U.S. employees were frozen on December 31, 2005, and are not provided to employees hired after 2005 or to those covered by a collective bargaining agreement. We did not make cash contributions to the primary U.S. pension plan in ~~2018~~2019 or the first six months of ~~2019.~~2020. There are approximately ~~14,000~~11,200 beneficiaries in the plan.

~~Based on assumptions found in our Annual Report on Form 10-K for the year ended December 31, 2018, we~~We do not expect to make contributions until 2022.

UMWA Plans

Retirement benefits related to former coal operations include medical benefits provided by the Pittston Coal Group Companies Employee Benefit Plan for UMWA Represented Employees. There ~~are~~were approximately ~~3,200~~3,000 beneficiaries in the UMWA ~~plans.~~plans as of December 31, 2019. The company does not expect to make additional contributions to these plans until ~~2025~~2028 based on actuarial assumptions.

Black Lung

Under the Federal Black Lung Benefits Act of 1972, Brink’s is responsible for paying lifetime black lung benefits to miners and their dependents for claims filed and approved after June 30, 1973. There ~~are~~were approximately 800 black lung ~~beneficiaries.~~

~~Assumptions for U.S. Retirement Obligations~~

~~We have made various assumptions to estimate the amount~~beneficiaries as of ~~payments to be made in the future. The most significant assumptions include:~~

~~Discount rates and other assumptions in effect at measurement dates (normally December 31)~~

~~Investment returns of plan assets~~

~~Addition of new participants (historically immaterial due to freezing of pension benefits and exit from coal business)~~

~~Mortality rates~~

~~Change in laws~~

~~The assumptions used to estimate our U.S. retirement obligations can be found in our Annual Report on Form 10-K for the year ended~~ December 31, ~~2018.~~

2019.

Summary of Expenses Related to All U.S. Retirement Liabilities through ~~2023~~2024

This table summarizes actual and projected expense related to U.S. retirement liabilities.


	Actual		Actual	Projected						Actual		Actual	Projected
(In millions)	2018		First Half 2019	2nd Half 2019	FY2019	2020	2021	2022	2023	2019		First Half 2020	2nd Half 2020	FY2020	2021	2022		2023		2024
Primary U.S. pension plan	$	5.5	1.3	1.3	2.6	5.5	5.2	4.3	4.0	$	21.8	4.1	4.6	8.7	3.1	(1.3	)	(4.4	)	(11.3	)
UMWA plans	16.1		9.1	6.8	15.9	22.6	22.9	23.2	23.7	15.9		5.7	5.8	11.5	11.4	11.6		11.9		12.3
Black lung plans	9.8		3.6	3.8	7.4	6.6	6.2	5.7	5.3	7.4		5.5	5.6	11.1	9.8	9.1		8.5		7.9
Total	$	31.4	14.0	11.9	25.9	34.7	34.3	33.2	33.0	$	45.1	15.3	16.0	31.3	24.3	19.4		16.0		8.9

Summary of Payments from Brink’s to U.S. Plans and Payments from U.S. Plans to Participants through ~~2023~~2024

This table summarizes actual and projected payments:

from Brink’s to U.S. retirement plans, and

from the plans to participants.


	Actual		Actual	Projected						Actual		Actual	Projected
(In millions)	2018		First Half 2019	2nd Half 2019	FY2019	2020	2021	2022	2023	2019		First Half 2020	2nd Half 2020	FY2020	2021	2022	2023	2024
Payments from Brink’s to U.S. Plans
Primary U.S. pension plan	$	—	—	—	—	—	—	17.3	28.3	$	—	—	—	—	—	14.1	17.6	16.3
Black lung plans	8.1		3.9	3.7	7.6	7.1	6.6	6.2	5.7	8.4		4.1	6.7	10.8	10.1	9.4	8.7	8.1
Total	$	8.1	3.9	3.7	7.6	7.1	6.6	23.5	34.0	$	8.4	4.1	6.7	10.8	10.1	23.5	26.3	24.4

Payments from U.S. Plans to participants
Primary U.S. pension plan	$	48.3	24.1	26.9	51.0	51.1	51.1	51.0	51.0	$	48.5	21.1	25.9	47.0	47.0	47.0	47.0	46.9
UMWA plans	28.6		15.6	17.9	33.5	33.6	33.6	34.2	34.0	29.3		13.2	17.0	30.2	30.2	29.7	29.3	28.7
Black lung plans	8.1		3.9	3.7	7.6	7.1	6.6	6.2	5.7	8.4		4.1	6.7	10.8	10.1	9.4	8.7	8.1
Total	$	85.0	43.6	48.5	92.1	91.8	91.3	91.4	90.7	$	86.2	38.4	49.6	88.0	87.3	86.1	85.0	83.7

The amounts in the tables above are based on a variety of estimates, including actuarial assumptions as of the most recent measurement date. The estimated amounts will change in the future to reflect payments made, investment returns, actuarial revaluations, and other changes in estimates. Actual amounts could differ materially from the estimated amounts.

Contingent Matters

See Note 14 to the condensed consolidated financial statements for information about contingent matters at June 30, ~~2019.~~

2020.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We serve customers in more than 100 countries, including 4148 countries where we operate subsidiaries. These operations expose us to a variety of market risks, including the effects of changes in interest rates and foreign currency exchange rates. In addition, we consume various commodities in the normal course of business, exposing us to the effects of changes in the prices of such commodities. These financial and commodity exposures are monitored and managed by us as an integral part of our overall risk management program. Our risk management program seeks to reduce the potentially adverse effects that the volatility of certain markets may have on our operating results. We have not had any material change in our market risk exposures in the six months ended June 30, ~~2019.~~2020.

Item 4. Controls and Procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”), who is our principal executive officer, and our Executive Vice President and Chief Financial Officer (“CFO”), who is our principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined under Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, as of the end of the period covered by this report, our CEO and CFO concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Changes in internal control over financial reporting.

During the quarter ended June 30, 2019, we moved our U.S. operations into the Shared Service Center ("SSC") as part of a multi-year implementation schedule in which several countries have and will be moved to the SSC using the same accounting platform. This implementation is being performed to consolidate accounting systems, gain efficiencies of scale, and harmonize internal control over financial reporting across our various entities. Other than this change, thereThere has been no change in our internal control over financial reporting during the quarter ended June 30, ~~2019~~2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Forward-looking information

This document contains both historical and forward-looking information. Words such as “anticipates,” “assumes,” “estimates,” “expects,” “projects,” “predicts,” “intends,” “plans,” “potential,” “believes,” “could,” “may,” “should” and similar expressions may identify forward-looking information. Forward-looking information in this document includes, but is not limited to, statements concerning: ~~segment~~the impact of the ongoing COVID-19 pandemic on our business, employees, customers, operating ~~profit margin outlook;~~results and financial position; difficulty in repatriating cash; continued strengthening of the U.S. dollar; effects of currency rate changes; anticipated costs of our Reorganization and Restructuring activities; collection of receivables related to the internal loss in the U.S. global services operations; support for the Company's Venezuela ~~business, expected impact of acquisitions;~~business; our effective tax rate; ~~costs related to and continued limitation in our ability to make and execute operational decisions with respect to our Venezuela operations;~~ the ability to meet liquidity needs; expenses and payouts for the U.S. retirement plans and the funded status of the primary pension plan; expected liability for and future contributions to the UMWA plans; liability for black lung obligations; and the effect of pending legal matters. Forward-looking information in this document is subject to known and unknown risks, uncertainties, and contingencies, which are difficult to quantify and which could cause actual results, performance or achievements to differ materially from those that are anticipated.

These risks, uncertainties and contingencies, many of which are beyond our control, include, but are not limited to:

our ability to improve profitability and execute further cost and operational improvements and efficiencies in our core businesses;

our ability to improve service levels and quality in our core businesses;

market volatility and commodity price fluctuations;

seasonality, pricing and other competitive industry factors;

investment in information technology and its impact on revenue and profit growth;

our ability to maintain an effective IT infrastructure and safeguard confidential information;

our ability to effectively develop and implement solutions for our customers;

risks associated with operating in foreign countries, including changing political, labor and economic conditions, regulatory issues (including the imposition of international sanctions, including by the U.S. government), currency restrictions and devaluations, restrictions on and cost of repatriating earnings and capital, impact on the Company's financial results as a result of jurisdictions determined to be highly inflationary, and restrictive government actions, including nationalization;

labor issues, including negotiations with organized labor and work stoppages;

pandemics (including the ongoing COVID-19 pandemic and related impacts and restrictions on the actions of businesses and consumers, including suppliers and customers), acts of terrorism, strikes or other extraordinary events that negatively affect global or regional cash commerce;

anticipated cash needs in light of our current liquidity position and the impact of COVID-19 on our liquidity;

the strength of the U.S. dollar relative to foreign currencies and foreign currency exchange rates;

our ability to identify, evaluate and complete acquisitions and other strategic transactions and to successfully integrate acquired companies;

costs related to dispositions and product or market exits;

our ability to obtain appropriate insurance coverage, positions taken by insurers relative to claims and the financial condition of insurers;

safety and security performance and loss experience;

employee, environmental and other liabilities in connection with former coal operations, including black lung claims;

the impact of the Patient Protection and Affordable Care Act on legacy liabilities and ongoing operations;

funding requirements, accounting treatment, and investment performance of our pension plans, the VEBA and other employee benefits;

changes to estimated liabilities and assets in actuarial assumptions;

the nature of hedging relationships and counterparty risk;

access to the capital and credit markets;

our ability to realize deferred tax assets;

the outcome of pending and future claims, litigation, and administrative proceedings;

public perception of our business, reputation and brand;

changes in estimates and assumptions underlying our critical accounting policies; and

the promulgation and adoption of new accounting standards, new government regulations and interpretation of existing standards and regulations.

This list of risks, uncertainties and contingencies is not intended to be exhaustive. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the period ended December 31, ~~2018~~2019 and in our other public filings with the Securities and Exchange Commission. The forward looking information included in this document is representative only as of the date of this document, and The Brink’s Company undertakes no obligation to update any information contained in this document.

Part II - Other Information

Item 1. Legal Proceedings

For a discussion of legal proceedings, see Note 14 to the condensed consolidated financial statements, “Contingent Matters,” in Part I, Item 1 of this Form 10-Q.

Item 1A. Risk Factors

The following risk factors are in addition to the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2020. We may disclose changes to risk factors or disclose additional factors from time to time in our future filings with the SEC.

Decreased use of cash could have a negative impact on our business.

While cash remains the most popular form of consumer payment in the world, the growth of other payment options, the increase of on-line transactions, and the influence of governments to increase tracking of payments could reduce the need for services related to cash, thereby affecting our financial results. We are developing new services that offer current and prospective customers opportunities to streamline their cash processing costs, making cash more competitive with other forms of payment. There is a risk that these initiatives may not offset the risks associated with our traditional cash-based business and that our business, financial condition, results of operations and cash flows could be negatively impacted.

The ongoing COVID-19 pandemic is expected to adversely affect our business, financial condition and results of operations, the extent of which is not now known or predictable.

The ongoing COVID-19 pandemic has created volatility, uncertainty and economic disruption for Brink’s, our customers and vendors, and the markets in which we do business. Beginning in the first quarter of 2020, health and economic conditions in the vast majority of the countries in which we operate rapidly worsened. As a result, government and customer actions and related events have impacted, and we expect will continue to impact, how we do business and the services that we provide, for a sustained period. It continues to be too early to assess the full impact that the COVID-19 pandemic, and the actions taken in response to it, will have on our employees, our businesses and segments, our customers and vendors, the industries that we serve, our financial condition and/or our results of operations as well as those of the businesses we are acquiring as part of the acquisition of the cash management operations of U.K.-based G4S plc. The full impact depends on many factors that are uncertain or not yet identifiable, and in many cases are out of our control. Those factors could include, among other things, (i) the duration of the COVID-19 pandemic and the types and magnitude of adverse impacts on regional economies, individually, and the global economy, as a whole; (ii) the health and welfare of our employees and that of our customers, vendors and suppliers; (iii) evolving business and government actions in response to the pandemic, including moratoriums by governments and regulators on rule making and regulatory and legal proceedings, limitations on employee actions by regulators and unions, and stay at home, social distancing measures and travel bans; (iv) the impact on the development and implementation of strategic initiatives and the integration of acquired businesses, including those acquired from G4S; (v) the response of our customers or prospective customers to the pandemic, including suspensions or terminations of existing contracts; (vi) the varying demand for the types of services we offer in the countries in which we offer them; (vii) our ability to continue to effectively market our services; (viii) our ability to resume services as needed; (ix) the type, size, profitability and geographic locations of our operations; (x) the ability of our customers to pay, to make timely payments or to pay in full; and (xi) the timing of finding effective treatments or a cure. Such events would result in reduced revenues and operating profit. Any of these events and others we have not yet identified could cause or contribute to the risks and uncertainties facing the Company and our customers and could materially adversely affect our business or portions thereof, and our financial condition, results of operations and/or stock price.

The ongoing COVID-19 pandemic could adversely impact the health and welfare of our employees, including our executive officers , which could have a material adverse effect on our ability to serve our customers and our results of operations.

Our customer-facing employees are necessary to conduct many of our services. If the health and welfare of customer-facing employees or employees providing critical corporate functions (including our executive officers) deteriorates, the number of employees so afflicted becomes significant, or an employee with skills and knowledge that cannot be replicated in our organization is impaired due to the COVID-19 pandemic, our ability to win business and provide services, as well as employee morale, customer relationships, business prospects, and results of operations of one or more of our segments, or the Company as a whole, could be materially adversely affected.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table provides information about common stock repurchases by the Company during the quarter ended June 30, ~~2019.~~2020.

Period

(a) Total Number of Shares Purchased⁽¹⁾

(b) Average Price Paid per Share

(d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs

April 1 through

April 30, ~~2019~~2020

—

May 1 through

May 31, ~~2019~~2020

—

June 1 through

June 30, ~~2019~~2020

—

(1)

On ~~May 8, 2017,~~February 6, 2020, the Company’s board of directors authorized the Company to repurchase up to ~~$200,000,000~~$250,000,000 of common stock from time to time as market conditions warrant and as covenants under existing agreements permit. The program does not require the Company to acquire any specific numbers of shares and may be modified or discontinued at any time. At June 30, ~~2019, $106,542,999~~2020, $250,000,000 remains available under this program. The program will expire on December 31, ~~2019.~~2021.

Item 6. Exhibits

Exhibit

Number




10.1	~~2013 Equity Incentive Plan, effective as of February 22, 2013,~~Key Employees' Deferred Compensation Program, as amended and restated effective ~~May 2, 2019~~

~~10.2~~	~~2017 Equity Incentive Plan, effective as of May 5, 2017, as amended and restated effective May 2, 2019~~April 1, 2020.

31.1	Certification of Douglas A. Pertz, President and Chief Executive Officer (Principal Executive Officer) of The Brink’s Company, pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2	Certification of Ronald J. Domanico, Executive Vice President and Chief Financial Officer (Principal Financial Officer) of The Brink’s Company, pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1	Certification of Douglas A. Pertz, President and Chief Executive Officer (Principal Executive Officer) of The Brink’s Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2	Certification of Ronald J. Domanico, Executive Vice President and Chief Financial Officer (Principal Financial Officer) of The Brink’s Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101	Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended ~~June 30, 2019,~~March 31, 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 June 30, ~~2019,~~2020, and December 31, ~~2018,~~2019, (ii) the Condensed Consolidated Statements of Operations for the three and six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, (iv) the Condensed Consolidated Statements of Equity for the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, (v) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, ~~2019~~2020 and ~~2018~~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.

^*Certain schedules attached to the Stock Purchase Agreement Amendment have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company will furnish the omitted schedules to the Securities and Exchange Commission upon request by the Commission.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



	THE BRINK’S COMPANY


July ~~24, 2019~~28, 2020	By: /s/ Ronald J. Domanico
	Ronald J. Domanico
	(Executive Vice President and
	Chief Financial Officer)
	(principal financial officer)

6266



(In millions)	Balance sheet classification	June 30, 2019
Assets:
Operating lease assets	Right-of-use assets, net	$	280.8
Finance lease assets	Property and equipment, net	145.9
Total leased assets		$	426.7

Liabilities:
Current:
Operating	Accrued liabilities	$	61.7
Financing	Current maturities of long-term debt	29.0
Noncurrent:
Operating	Lease liabilities	229.9
Financing	Long-term debt	104.7
Total lease liabilities		$	425.3



(In millions)	Facilities		Vehicles	Other	Total

2019	$	51.7	9.7	21.6	83.0
2020	46.2		5.5	15.5	67.2
2021	39.5		2.3	9.5	51.3
2022	33.8		0.6	5.3	39.7
2023	29.4		0.1	2.3	31.8
Later years	130.3		—	—	130.3
	$	330.9	18.2	54.2	403.3



(In millions)

2019	$	25.1
2020	23.5
2021	21.7
2022	19.7
2023	16.2
Later years	14.3
Total	$	120.5

(In millions)

Three Months Ended June 30, 2020

Six Months Ended June 30, 2020

Derivative instrument losses included in interest expense