Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-09148 | |
Entity Registrant Name | BRINKS CO | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1317776 | |
Entity Address, Address Line One | 1801 Bayberry Court | |
Entity Address, City or Town | Richmond | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23226 | |
City Area Code | 804 | |
Local Phone Number | 289-9600 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Trading Symbol | BCO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 50,485,936 | |
Document Fiscal Year Focus | 2020 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000078890 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 274.4 | $ 311 |
Restricted cash | 237.7 | 158 |
Accounts receivable, net | 643.3 | 635.6 |
Prepaid expenses and other | 183.6 | 128 |
Total current assets | 1,339 | 1,232.6 |
Right-of-use assets, net | 261.1 | 270.3 |
Property and equipment, net | 704.1 | 763.3 |
Goodwill | 794.4 | 784.6 |
Other intangibles | 275.7 | 272.5 |
Deferred income taxes | 255.4 | 273.5 |
Other | 171.2 | 167 |
Total assets | 3,800.9 | 3,763.8 |
Current liabilities: | ||
Short-term borrowings | 14.1 | 14.3 |
Current maturities of long-term debt | 74 | 74.5 |
Accounts payable | 151.6 | 184.5 |
Accrued liabilities | 564.5 | 628.4 |
Restricted Cash Held for Customers | 176.4 | 100.3 |
Total current liabilities | 980.6 | 1,002 |
Long-term debt | 1,756.8 | 1,554.8 |
Accrued pension costs | 215.6 | 228.9 |
Retirement benefits other than pensions | 343.1 | 347.8 |
Lease liabilities | 212.5 | 218.4 |
Deferred income taxes | 24.8 | 21.2 |
Other | 185.5 | 183.1 |
Total liabilities | 3,718.9 | 3,556.2 |
Commitments and contingent liabilities (notes 4, 8 and 14) | ||
The Brink's Company (Brink's) shareholders: | ||
Shares issued and outstanding: 2020 - 50.5; 2019 - 50.1 | 50.5 | 50.1 |
Capital in excess of par value | 661.9 | 663.3 |
Retained earnings | 449.9 | 457.4 |
Accumulated other comprehensive loss | (1,096) | (979) |
Brink’s shareholders | 66.3 | 191.8 |
Noncontrolling interests | 15.7 | 15.8 |
Total equity | 82 | 207.6 |
Total liabilities and equity | $ 3,800.9 | $ 3,763.8 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Par value (in dollars per share) | $ 1 | $ 1 |
Shares authorized (in shares) | 100,000,000 | 100,000,000 |
Shares issued (in shares) | 50,500,000 | 50,100,000 |
Shares outstanding (in shares) | 50,500,000 | 50,100,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Income Statement [Abstract] | |||
Revenues | $ 872.8 | $ 905 | |
Costs and expenses: | |||
Cost of revenues | 693.4 | 702.7 | |
Selling, general and administrative expenses | 148.1 | 141.7 | |
Total costs and expenses | 841.5 | 844.4 | |
Other operating income (expense) | (5.1) | (2.2) | |
Operating profit | 26.2 | 58.4 | |
Interest expense | (20) | (23) | |
Interest and other nonoperating expense | (15.6) | (11.2) | |
Income (loss) from continuing operations before tax | (9.4) | 24.2 | |
Provision (benefit) for income taxes | (12.2) | 9.7 | |
Income from continuing operations | 2.8 | 14.5 | |
Net income | 2.8 | 14.5 | |
Less net income attributable to noncontrolling interests | 1 | 0.8 | |
Net income attributable to Brink’s | $ 1.8 | $ 13.7 | |
Basic: | |||
Continuing operations (dollars per share) | [1] | $ 0.04 | $ 0.27 |
Net income (dollars per share) | [1] | 0.03 | 0.27 |
Diluted: | |||
Continuing operations (dollars per share) | [1] | 0.03 | 0.27 |
Net income (dollars per share) | [1] | $ 0.03 | $ 0.27 |
Weighted-average shares | |||
Basic (shares) | 50.6 | 50 | |
Diluted (shares) | 51.3 | 50.9 | |
Cash dividends paid per common share (dollars per share) | $ 0.15 | $ 0.15 | |
[1] | Amounts may not add due to rounding. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2.8 | $ 14.5 |
Benefit plan adjustments: | ||
Benefit plan actuarial gains | 18.6 | 11.3 |
Benefit plan prior service costs | (1.1) | (1.3) |
Total benefit plan adjustments | 17.5 | 10 |
Foreign currency translation adjustments | (120.3) | 0.6 |
Losses on cash flow hedges | (14.7) | (7.9) |
Other comprehensive income (loss) before tax | (117.5) | 2.7 |
Provision (benefit) for income taxes | (0.1) | 0.5 |
Other comprehensive income (loss) | (117.4) | 2.2 |
Comprehensive income (loss) | (114.6) | 16.7 |
Less comprehensive income attributable to noncontrolling interests | 0.6 | 1.1 |
Comprehensive income (loss) attributable to Brink's | $ (115.2) | $ 15.6 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | |
Beginning balance at Dec. 31, 2018 | $ 166.6 | $ 49.7 | $ 628.2 | $ 429.1 | $ (953.3) | $ 12.9 | |
Beginning balance, Shares at Dec. 31, 2018 | 49.7 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 14.5 | 13.7 | 0.8 | ||||
Other comprehensive income | 2.2 | 1.9 | 0.3 | ||||
Stock repurchased | 0 | (0.5) | 0.5 | ||||
Dividends to: | |||||||
Brink’s common shareholders | (7.4) | (7.4) | |||||
Stock options and awards | |||||||
Compensation expense | 9.4 | 9.4 | |||||
Other share-based benefit transactions | (6) | $ 0.2 | (6.2) | ||||
Other share-based benefit transactions, shares | 0.2 | ||||||
Ending balance at Mar. 31, 2019 | 179.3 | $ 49.9 | 630.9 | 464.7 | (980.2) | 14 | |
Ending balance, Shares at Mar. 31, 2019 | 49.9 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of change in accounting principle | [1] | 0 | 28.8 | (28.8) | |||
Beginning balance at Dec. 31, 2019 | 207.6 | $ 50.1 | 663.3 | 457.4 | (979) | 15.8 | |
Beginning balance, Shares at Dec. 31, 2019 | 50.1 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2.8 | 1.8 | 1 | ||||
Other comprehensive income | (117.4) | (117) | (0.4) | ||||
Dividends to: | |||||||
Brink’s common shareholders | (7.5) | (7.5) | |||||
Noncontrolling interests | (0.7) | (0.7) | |||||
Stock options and awards | |||||||
Compensation expense | 7.2 | 7.2 | |||||
Other share-based benefit transactions | (8.3) | $ 0.4 | (8.6) | (0.1) | |||
Other share-based benefit transactions, shares | 0.4 | ||||||
Ending balance at Mar. 31, 2020 | 82 | $ 50.5 | $ 661.9 | 449.9 | (1,096) | $ 15.7 | |
Ending balance, Shares at Mar. 31, 2020 | 50.5 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of change in accounting principle | [2] | $ (1.7) | $ (1.7) | $ 0 | |||
[1] | 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. | ||||||
[2] | Effective January 1, 2020, we adopted the provisions of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. 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. |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Dividends to: | ||
Dividends (dollars per share) | $ 0.15 | $ 0.15 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 2.8 | $ 14.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 45 | 47.8 |
Share-based compensation expense | 7.2 | 9.4 |
Deferred income taxes | 9.7 | 1.1 |
(Gains) losses on sale of property, equipment and marketable securities | 2.7 | (0.2) |
Gains on business dispositions | 4.7 | 0 |
Loss on derivative instruments | 7.7 | 0 |
Impairment losses | 2 | 1.2 |
Retirement benefit funding less than expense: | ||
Pension | 2.7 | 0.3 |
Other than pension | 2.6 | 4.5 |
Remeasurement losses due to Argentina currency devaluations | 1.6 | 3.9 |
Other operating | 14.2 | 3.2 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable and income taxes receivable | (82.3) | (36.8) |
Accounts payable, income taxes payable and accrued liabilities | (42.9) | (47.9) |
Restricted cash held for customers | 81.2 | (36.8) |
Customer obligations | (6.2) | 11.3 |
Prepaid and other current assets | (20.7) | (10.2) |
Other | (9.2) | (3.3) |
Net cash provided (used) by operating activities | 13.4 | (38) |
Cash flows from investing activities: | ||
Capital expenditures | (30.2) | (35.2) |
Acquisitions, net of cash acquired | (73.3) | (129.9) |
Dispositions, net of cash disposed | (3) | 0 |
Purchases | (0.1) | (1.1) |
Sales | 0.4 | 0.4 |
Cash proceeds from sale of property and equipment | 1 | 1.6 |
Acquisition of customer contracts | (5.2) | 0 |
Net cash used by investing activities | (110.4) | (164.2) |
Cash flows from financing activities: | ||
Short-term borrowings | 0.6 | (5.5) |
Borrowings | 361.2 | 310.2 |
Repayments | (149.8) | (502.9) |
Borrowings | 0 | 333.2 |
Repayments | (18.5) | (8) |
Payment of acquisition-related obligation | (6.8) | (1.5) |
Debt financing costs | 0.7 | 3.9 |
Dividends to: | ||
Shareholders of Brink’s | (7.5) | (7.4) |
Noncontrolling interests in subsidiaries | (0.7) | 0 |
Tax withholdings associated with share-based compensation | (9.2) | (7.3) |
Other | (0.5) | (0.3) |
Net cash provided by financing activities | 168.1 | 106.6 |
Effect of exchange rate changes on cash | (28) | (3.6) |
Cash, cash equivalents and restricted cash: | ||
Increase (decrease) | 43.1 | (99.2) |
Balance at beginning of period | 469 | 479.5 |
Balance at end of period | $ 512.1 | $ 380.3 |
Basis of presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The Brink’s Company (along with its subsidiaries, “Brink’s” or “we”) has three operating segments: • North America • South America • Rest of World Our unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and applicable quarterly reporting regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes in our Annual Report on Form 10-K for the year ended December 31, 2019 . We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements. Actual results could differ materially from these estimates. The most significant estimates are related to goodwill and other long-lived assets, pension and other retirement benefit obligations, legal contingencies, allowance for doubtful accounts, deferred tax assets, purchase price allocations and foreign currency translation. Each of these 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 and we have begun 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 three months of 2020 and 6% of our consolidated revenues for the first three months of 2019 . The operating environment in Argentina continues to present business challenges, including ongoing devaluation of the Argentine peso and significant inflation. In the first three months of 2020 and 2019 , the Argentine peso declined approximately 7% (from 59.9 to 64.5 pesos to the U.S. dollar) and approximately 13% (from 37.6 to 43.3 pesos to the U.S. dollar), respectively. For the year ended December 31, 2019 , the Argentine peso declined approximately 37% (from 37.6 to 59.9 pesos to the U.S. dollar). Beginning July 1, 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, we consolidated Brink's Argentina using our accounting policy for subsidiaries operating in highly inflationary economies beginning with the third quarter of 2018. Argentine peso-denominated monetary assets and liabilities are remeasured at each balance sheet date using the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In the first three months of 2020, we recognized a $1.6 million pretax remeasurement loss. In the first three months of 2019, we recognized a $3.9 million pretax remeasurement loss. At March 31, 2020 , Argentina's economy remains highly inflationary for accounting purposes. At March 31, 2020 , we had net monetary assets denominated in Argentine pesos of $22.8 million (including cash of $19.7 million ). At March 31, 2020 , we had net nonmonetary assets of $151.0 million (including $99.8 million of goodwill). At March 31, 2020 , we had no equity securities denominated in Argentine pesos. During September 2019, the Argentine government announced currency controls on both companies and individuals. The Argentine central bank issued details as to how the exchange control procedures would operate in practice. Under these procedures, central bank approval is required for many transactions, including dividend repatriation abroad. 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 three months ended March 31, 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 Our Venezuelan operations offer transportation and route-based logistics management services for cash and valuables throughout Venezuela. Currency exchange regulations, combined with other government regulations, such as price controls and strict labor laws, significantly limit our ability to make and execute operational decisions at our Venezuelan subsidiaries. As a result of these conditions, we do not meet the accounting criteria for control over our Venezuelan operations and, as a result, we report the results of our investment in our Venezuelan subsidiaries using the cost method of accounting, the basis of which approximates zero. Prior to the imposition of the U.S. government sanctions in 2019, we provided immaterial amounts of financial support to our Venezuela operations. We continue to monitor the situation in Venezuela, including the imposition of sanctions by the U.S. government targeting Venezuela. Internal loss A former non-management employee in our U.S. global services operations embezzled funds from Brink's in prior years. Except for a small deductible amount, the amount of the internal loss related to the embezzlement was covered by our insurance. In an effort to cover up the embezzlement, the former employee intentionally misstated the underlying accounts receivable subledger data. In 2019, we incurred $4.5 million in costs (primarily third party expenses) to reconstruct the accounts receivables subledger. In the first 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 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 quarter of 2020 for an additional $9.4 million . This estimate will be adjusted in future periods, if needed, as assumptions related to the collectability of these accounts receivable change. At March 31, 2020, we have recorded a $23.0 million allowance on $30.2 million of accounts receivable, or 76% . Due to the unusual nature of this internal loss and the related errors in the subledger data, along with the fact that management has excluded these amounts when evaluating internal performance, we have excluded these net charges from segment results. Goodwill Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. We review goodwill for impairment annually, as of October 1, and whenever events or circumstances in interim periods indicate that it is more likely than not that an impairment may have occurred. Given the COVID-19 pandemic, impairment indicators were reviewed as of March 31, 2020 and we concluded that there were no indicators that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We will continue to monitor results in future periods to determine whether any indicators of impairment exist that would cause us to perform an impairment review. 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 financing leases (previously "capital leases") remains substantially unchanged. We adopted the standard effective January 1, 2019 and 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 elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, 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 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 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 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 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 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 amendments in this ASU eliminate some disclosures that are no longer considered cost beneficial, modify/clarify the specific requirements of certain disclosures and add disclosure requirements for Level 3 fair value measurements. We adopted ASU 2018-13 effective January 1, 2020 and the standard did not have a significant impact on our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changes the way entities recognize impairment of many financial assets. This new guidance requires immediate recognition of estimated credit losses expected to occur over the life of the asset and incorporates estimated, forward-looking data when measuring lifetime 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 previously applicable GAAP. We recognized a cumulative-effect adjustment decreasing retained earnings by $1.7 million on January 1, 2020. The adoption of the standard also resulted in expanded disclosures related to credit losses (see Note 10). In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod tax allocations and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 will be effective for us on January 1, 2021. We are currently evaluating the impact it will have on our financial statements. |
Revenue from contracts with cus
Revenue from contracts with customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from contracts with customers | Revenue from Contracts with Customers Performance Obligations We provide various services to meet the needs of our customers and we group these service offerings into three broad categories: Core Services, High-Value Services and Other Security Services. Core Services Cash-in-transit ("CIT") and ATM services are core services we provide to customers throughout the world. We charge customers per service performed or based on the value of goods transported. CIT services generally involve the secure transportation of cash, securities and other valuables between businesses, financial institutions and central banks. ATM services are generally composed of management services, including cash replenishment and forecasting, remote monitoring, transaction processing, installation and maintenance. High-Value Services Our high-value services leverage our brand, global infrastructure and core services and include cash management services, global services and payment services. We offer a variety of cash management services such as currency and coin counting and sorting, deposit preparation and reconciliation, and safe device installation and servicing (including our CompuSafe ® service). Our global services business provides secure ground, sea and air transportation and storage of highly-valued commodities including diamonds, jewelry, precious metals and other valuables. We also provide payment services which include bill payment and processing services on behalf of utility companies and other billers plus general purpose reloadable prepaid cards and payroll cards. Other Security Services Our other security services feature the protection of airports, offices, warehouses, stores, and public venues in Europe and Brazil. For performance obligations related to the services described above, we generally satisfy our obligations as each action to provide the service to the customer occurs. Because the customers simultaneously receive and consume the benefits from our services, these performance obligations are deemed to be satisfied over time. We use an output method, units of service provided, to recognize revenue because that is the best method to represent the transfer of our services to the customer at the agreed upon rate for each action. Although not as significant as our service offerings, we also sell goods to customers from time to time, such as safe devices. In those transactions, we satisfy our performance obligation at a point in time. We recognize revenue when the goods are delivered to the customer as that is the point in time that best represents when control has transferred to the customer. Our contracts with customers describe the services we can provide along with the fees for each action to provide the service. We typically send invoices to customers for all of the services we have provided within a monthly period and payments are generally due within 30 to 60 days of the invoice date. Although our customer contracts specify the fees for each action to provide service, the majority of the services stated in our contracts do not have a defined quantity over the contract term. Accordingly, the transaction price is considered variable as there is an unknown volume of services that will be rendered over the course of the contract. We recognize revenue for these services in the period in which they are provided to the customer based on the contractual rate at which we have the right to invoice the customer for each action. Some of our contracts with customers contain clauses that define the level of service that the customer will receive. The service level agreements (“SLA”) within those contracts contain specific calculations to determine whether the appropriate level of service has been met within a specific period, which is typically a month. We estimate SLA penalties and recognize the amounts as a reduction to revenue. Taxes collected from customers and remitted to governmental authorities are not included in revenues in the condensed consolidated statements of operations. Revenue Disaggregated by Reportable Segment and Type of Service (In millions) Core Services High-Value Services Other Security Services Total Three months ended March 31, 2020 Reportable Segments: North America $ 274.2 170.1 — 444.3 South America 100.4 93.8 3.7 197.9 Rest of World 82.0 117.9 30.7 230.6 Total reportable segments 456.6 381.8 34.4 872.8 Three months ended March 31, 2019 Reportable Segments: North America $ 277.2 157.3 — 434.5 South America 119.2 108.1 3.0 230.3 Rest of World 88.0 119.3 32.9 240.2 Total reportable segments 484.4 384.7 35.9 905.0 The majority of our revenues from contracts with customers are earned by providing services and these performance obligations are satisfied over time. Smaller amounts of revenues are earned from selling goods, such as safes, to customers where the performance obligations are satisfied at a point in time. Certain of our high-value services involve the leasing of assets, such as safes, to our customers along with the regular servicing of those safe devices. Revenues related to the leasing of these assets are recognized in accordance with applicable lease guidance, but are included in the above table as the amounts are a small percentage of overall revenues. Contract Balances Contract Asset Although payment terms and conditions can vary, for the majority of our customer contracts, we invoice for all of the services provided to the customer within a monthly period. For certain customer contracts, the timing of our performance may precede our right to invoice the customer for the total transaction price. For example, Brink's affiliates in certain countries, primarily in South America, negotiate annual price adjustments with certain customers and, once the price increases are finalized, the pricing changes are made retroactive to services provided in earlier periods. These retroactive pricing adjustments are estimated and recognized as revenue with a corresponding contract asset in the same period in which the related services are performed. As the estimate of the ultimate transaction price changes, we recognize a cumulative catch-up adjustment for the change in estimate. Contract assets are included in prepaid expenses and other on the condensed consolidated balance sheet. Contract Liability For other customer contracts, we may obtain the right to payment or receive customer payments prior to performing the related services under the contract. When the right to customer payments or receipt of payments precedes our performance, we recognize a contract liability, which is included in accrued liabilities on the condensed consolidated balance sheet. The opening and closing balances of receivables, contract assets and contract liabilities related to contracts with customers are as follows: (In millions) Receivables Contract Asset Contract Liability Opening (January 1, 2020) $ 635.6 1.9 12.8 Closing (March 31, 2020) 643.3 1.9 14.5 Increase (decrease) $ 7.7 — 1.7 The amount of revenue recognized in the three months ended March 31, 2020 that was included in the January 1, 2020 contract liability balance was $4.9 million . This revenue consists of services provided to customers who had prepaid for those services prior to the current year. We also recognized revenue of $0.2 million in the three months ended March 31, 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 March 31, 2020 , the net capitalized costs to obtain contracts was $1.7 million , which is included in other assets on the condensed consolidated balance sheet. Amortization expense was not significant and there were no impairment losses recognized related to these contract costs in the first three months of 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. |
Segment information
Segment information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment information | Segment information We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. Our CODM is our President and Chief Executive Officer. Our CODM evaluates performance and allocates resources to each operating segment based on a profit or loss measure which, at the reportable segment level, excludes the following: • Corporate expenses - former non-segment and regional management costs, currency transaction gains and losses, adjustments to reconcile segment accounting policies to U.S. GAAP, and costs related to global initiatives are excluded from segment results. • Other items not allocated to segments - certain significant items such as reorganization and restructuring actions that are evaluated on an individual basis by management and are not considered part of the ongoing activities of the business are excluded from segment results. We also exclude certain costs, gains and losses related to acquisitions and dispositions of assets and of businesses. Brink's Argentina is consolidated using our accounting policy for subsidiaries operating in highly inflationary economies. We have excluded from our segment results the impact of highly inflationary accounting in Argentina, including currency remeasurement losses. Incremental costs (primarily third party expenses) incurred related to the mitigation of material weaknesses and the implementation and adoption of ASU 2016-02, the new lease accounting standard effective for us January 1, 2019, are excluded from segment results. We have also excluded from our segment results net charges related to an internal loss in our U.S. global services operations. The net impact of the internal loss includes costs incurred to reconstruct an accounts receivable subledger as well as estimated bad debt expense for uncollectible receivables, partially offset by revenue billed and collected, but not previously recorded as a result of the former non-management employee's embezzlement activities. The following table summarizes our revenues and segment profit for each of our reportable segments and reconciles these amounts to consolidated revenues and operating profit: Revenues Operating Profit Three Months Ended March 31, Three Months Ended March 31, (In millions) 2020 2019 2020 2019 Reportable Segments: North America $ 444.3 434.5 $ 33.0 44.0 South America 197.9 230.3 41.6 43.0 Rest of World 230.6 240.2 15.0 23.8 Total reportable segments 872.8 905.0 89.6 110.8 Reconciling Items: Corporate expenses: General, administrative and other expenses — — (27.3 ) (27.1 ) Foreign currency transaction gains (losses) — — (2.7 ) 0.9 Reconciliation of segment policies to GAAP — — 3.5 0.2 Other items not allocated to segments: Reorganization and Restructuring — — (5.6 ) (3.5 ) Acquisitions and dispositions — — (19.1 ) (17.2 ) Argentina highly inflationary impact — — (2.4 ) (4.3 ) Internal loss (a) — — (9.6 ) — Reporting compliance (b) — — (0.2 ) (1.4 ) Total $ 872.8 905.0 $ 26.2 58.4 (a) See details regarding the impact of the Internal Loss at Note 1. (b) Costs (primarily third party expenses) related to accounting standard implementation. Additional information provided at page 38 . |
Retirement benefits
Retirement benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Retirement benefits Pension plans We have various defined-benefit pension plans covering eligible current and former employees. Benefits under most plans are based on salary and years of service. The components of net periodic pension cost for our pension plans were as follows: U.S. Plans Non-U.S. Plans Total (In millions) 2020 2019 2020 2019 2020 2019 Three months ended March 31, Service cost $ — — 2.9 2.5 2.9 2.5 Interest cost on projected benefit obligation 6.6 8.5 2.4 2.6 9.0 11.1 Return on assets – expected (11.5 ) (12.7 ) (2.6 ) (2.6 ) (14.1 ) (15.3 ) Amortization of losses 6.9 5.0 1.2 1.0 8.1 6.0 Settlement loss — — 0.4 0.3 0.4 0.3 Net periodic pension cost $ 2.0 0.8 4.3 3.8 6.3 4.6 We did not make cash contributions to the primary U.S. pension plan in 2019 or the first three months of 2020 . Based on assumptions described in our Annual Report on Form 10-K for the year ended December 31, 2019 , we do not expect to make any additional contributions to the primary U.S. pension plan until 2022. Retirement benefits other than pensions We provide retirement healthcare benefits for eligible current and former U.S., Canadian, and Brazilian employees. Retirement benefits related to our former U.S. coal operations include medical benefits provided by the Pittston Coal Group Companies Employee Benefit Plan for United Mine Workers of America Represented Employees (the “UMWA plans”) as well as costs related to Black Lung obligations. The components of net periodic postretirement cost related to retirement benefits other than pensions were as follows: UMWA Plans Black Lung and Other Plans Total (In millions) 2020 2019 2020 2019 2020 2019 Three months ended March 31, Interest cost on accumulated postretirement benefit obligations $ 3.3 5.0 0.9 0.9 4.2 5.9 Return on assets – expected (3.3 ) (3.3 ) — — (3.3 ) (3.3 ) Amortization of losses 4.0 5.1 2.0 1.1 6.0 6.2 Amortization of prior service credit (1.2 ) (1.1 ) — (0.1 ) (1.2 ) (1.2 ) Net periodic postretirement cost $ 2.8 5.7 2.9 1.9 5.7 7.6 The components of net periodic pension cost and net periodic postretirement cost other than the service cost component are included in interest and other nonoperating income (expense) in the condensed consolidated statements of operations. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Three Months Ended March 31, 2020 2019 Continuing operations Provision (benefit) for income taxes (in millions) $ (12.2 ) 9.7 Effective tax rate 129.8 % 40.1 % 2020 Compared to U.S. Statutory Rate The effective income tax rate on continuing operations in the first three 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 which no tax benefit can be recorded, nondeductible expenses in Mexico, taxes on cross border payments and U.S. taxable income limitations, and the characterization of a French business tax as an income tax, partially offset by the tax benefits related to the distribution of share-based payments. 2019 Compared to U.S. Statutory Rate The effective income tax rate on continuing operations in the first three 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. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions We account for business combinations using the acquisition method. Under the acquisition method of accounting, assets acquired and liabilities assumed from these operations are recorded at fair value on the date of acquisition. The condensed consolidated statements of operations include the results of operations for each acquired entity from the date of acquisition. G4S International Logistics Group Limited On March 9, 2020 , we acquired 100% of the capital stock of G4S International Logistics Group Limited, a UK-based company that directly or indirectly owns controlling interests in multiple business operations in ten other markets (together "G4Si") for $90.1 million . The G4Si business specializes in secure logistics and storage of highly valuable commodities including banknotes, precious metals, diamonds and jewelry. G4Si operations generate approximately $90 million in annual revenues and are expected to supplement our existing global services business. We have provisionally estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition in the following table. The determination of estimated fair value required management to make significant estimates and assumptions. The amounts reported are considered provisional as we are completing the valuations that are required to allocate the purchase price. As a result, the allocation of the provisional purchase price may change in the future. (In millions) Estimated Fair Value at Acquisition Date Fair value of purchase consideration Cash paid through March 31, 2020 $ 88.8 Liabilities assumed from seller 1.6 Receivable from seller (0.3 ) Fair value of purchase consideration $ 90.1 Fair value of net assets acquired (a) Cash $ 17.1 Accounts receivable 12.1 Other current assets 3.0 Property and equipment, net 1.8 Intangible assets (b) 20.7 Goodwill (c) 55.5 Other noncurrent assets 4.4 Current liabilities (16.4 ) Noncurrent liabilities (8.1 ) Fair value of net assets acquired $ 90.1 (a) Final allocation will be determined once the valuation is complete. (b) Intangible assets are composed of customer relationships ( $21 million fair value and 10 year amortization period). (c) Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating G4Si’s operations with our existing global services operations. Goodwill has been provisionally assigned to the Global Markets-EMEA reporting unit ( $47.4 million ) and the Global Markets-Asia reporting unit ( $8.1 million ). We do not currently expect goodwill in these reporting units to be deductible for tax purposes. Rodoban Transportes Aereos e Terrestres Ltda., Rodoban Servicos e Sistemas de Seguranca Ltda., and Rodoban Seguranca e Transporte de Valores Ltda ("Rodoban") On January 4, 2019 , we acquired 100% of the capital stock of Rodoban in Brazil for $134 million . Rodoban provides cash-in-transit, money processing and ATM services and generates annual revenues of approximately $80 million . The Rodoban business expanded our operations in southeastern Brazil and is integrated with our existing Brink's Brazil operations. Rodoban has approximately 2,900 employees, 13 branches and about 190 armored vehicles across its operations. We estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition in the following table. The determination of estimated fair value required management to make significant estimates and assumptions. We finalized our purchase price accounting in the fourth quarter of 2019. There were no significant changes to our fair value estimates of the net assets acquired of Rodoban. (In millions) Fair Value at Acquisition Date Fair value of purchase consideration Cash paid through March 31, 2020 $ 135.7 Indemnification asset (1.9 ) Fair value of purchase consideration $ 133.8 Fair value of net assets acquired Cash $ 1.4 Accounts receivable 8.9 Other current assets 0.5 Property and equipment, net 2.4 Intangible assets (a) 49.0 Goodwill (b) 85.1 Other noncurrent assets 5.8 Current liabilities (11.4 ) Noncurrent liabilities (7.9 ) Fair value of net assets acquired $ 133.8 (a) Intangible assets are composed of customer relationships ( $47 million fair value and 11 year amortization period), trade name ( $1 million fair value and 1 year amortization period), and non-compete agreement ( $1 million fair value and 5 year amortization period). (b) Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating Rodoban’s operations with our existing Brink’s Brazil operations. All of the goodwill has been assigned to the Brazil reporting unit and is expected to be deductible for tax purposes. Other acquisitions in 2019 On June 12, 2019 , we acquired 100% of the capital stock of Balance Innovations, LLC and its wholly owned subsidiary, Balance Innovations Services, Inc. (together "BI"). BI develops and licenses software that provides real-time data to optimize operations for general retail and convenience store industries throughout the United States and Canada. This acquisition enhances our ability to deliver technology-enabled, end-to-end retail cash management services. On June 14, 2019 , we acquired 100% of the capital stock of Comercio Eletronico Facil Ltda. ("COMEF"), a Brazil-based company. COMEF offers bank correspondent services and bill payment processing and is expected to supplement our existing Brazilian payment services businesses. On September 30, 2019 , we acquired 100% of the capital stock of Transportadora de Valores del Sur Limitada and its wholly owned subsidiary, TVS Pagos, Recaudos y Procesos S.A.S. (together "TVS"). TVS provides cash in transit and money processing services in Colombia. This acquisition is expected to provide opportunities for branch consolidation and route efficiencies and position our existing Colombian business as well as TVS to more effectively service our customers. The aggregate purchase price of these three business acquisitions (BI, COMEF and TVS) was approximately $49 million . Together, these three acquired operations have approximately 1,300 employees. For these three business acquisitions (BI, COMEF and TVS), we estimated fair values for the assets purchased and liabilities assumed as of the date of the acquisitions. These estimated amounts are aggregated in the following table. The determination of estimated fair value required management to make significant estimates and assumptions. The amounts reported are considered provisional as we are completing the valuation that is required to allocate the purchase price. As a result, the allocation of the purchase price and the amount of goodwill and intangibles may change in the future. (In millions) Estimated Fair Value at Acquisition Date Fair value of purchase consideration Cash paid through March 31, 2020 $ 60.2 Contingent consideration 1.6 Indemnification asset (12.9 ) Fair value of purchase consideration $ 48.9 Fair value of net assets acquired (a) Cash $ 6.5 Accounts receivable 4.5 Property and equipment, net 7.1 Intangible assets (a) 24.4 Goodwill (b) 33.8 Other current and noncurrent assets 1.9 Current liabilities (15.2 ) Noncurrent liabilities (14.1 ) Fair value of net assets acquired $ 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 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 three months of 2020. (In millions) Revenue Net income (loss) attributable to Brink's Three months ended March 31, 2020 G4Si $ 5.4 0.4 Total $ 5.4 0.4 The pro forma consolidated results of Brink’s presented below reflect a hypothetical ownership as of January 1, 2018 for the businesses we acquired during 2019 and a hypothetical ownership as of January 1, 2019 for the businesses we acquired in the first three months of 2020. (In millions) Revenue Net income (loss) attributable to Brink's Pro forma results of Brink's for the three months ended March 31, 2020 Brink's as reported $ 872.8 1.8 G4Si (a) 16.0 0.5 Total $ 888.8 2.3 2019 Brink's as reported $ 905.0 13.7 G4Si (a) 20.9 0.7 Rodoban (a) 0.6 — Other 2019 acquisitions (a) 12.9 0.5 Total $ 939.4 14.9 (a) Represents amounts prior to acquisition by Brink's. Acquisition costs We have incurred $5.5 million in transaction costs related to business acquisitions in the first three months of 2020 (compared to $0.4 million in the first three months of 2019). These costs are classified in the condensed consolidated statements of operations as selling, general and administrative expenses. Dispositions On January 1, 2020 , we sold 100% of our ownership interest in a French security services company for a net sales price of approximately $11 million . We recognized a $4.7 million gain on the sale of this business, which is reported in interest and other nonoperating income (expense) in the condensed consolidated statements of operations. The French security services company was part of the Rest of World reportable segment and reported revenues of $3 million in 2019. |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) Other comprehensive income (loss), including the amounts reclassified from accumulated other comprehensive loss into earnings, was as follows: Amounts Arising During the Current Period Amounts Reclassified to Net Income (Loss) (In millions) Pretax Income Tax Pretax Income Tax Total Other Comprehensive Income (Loss) Three months ended March 31, 2020 Amounts attributable to Brink's: Benefit plan adjustments $ 4.2 0.1 13.3 (3.1 ) 14.5 Foreign currency translation adjustments (b) (119.9 ) — — — (119.9 ) Gains (losses) on cash flow hedges 10.0 (5.3 ) (24.7 ) 8.4 (11.6 ) (105.7 ) (5.2 ) (11.4 ) 5.3 (117.0 ) Amounts attributable to noncontrolling interests: Foreign currency translation adjustments (0.4 ) — — — (0.4 ) (0.4 ) — — — (0.4 ) Total Benefit plan adjustments (a) 4.2 0.1 13.3 (3.1 ) 14.5 Foreign currency translation adjustments (b) (120.3 ) — — — (120.3 ) Gains (losses) on cash flow hedges (c) 10.0 (5.3 ) (24.7 ) 8.4 (11.6 ) $ (106.1 ) (5.2 ) (11.4 ) 5.3 (117.4 ) Three months ended March 31, 2019 Amounts attributable to Brink's: Benefit plan adjustments $ (1.3 ) 0.2 11.3 (2.7 ) 7.5 Foreign currency translation adjustments 0.3 — — — 0.3 Gains (losses) on cash flow hedges (5.3 ) 1.1 (2.6 ) 0.9 (5.9 ) (6.3 ) 1.3 8.7 (1.8 ) 1.9 Amounts attributable to noncontrolling interests: Foreign currency translation adjustments 0.3 — — — 0.3 0.3 — — — 0.3 Total Benefit plan adjustments (a) (1.3 ) 0.2 11.3 (2.7 ) 7.5 Foreign currency translation adjustments 0.6 — — — 0.6 Gains (losses) on cash flow hedges (c) (5.3 ) 1.1 (2.6 ) 0.9 (5.9 ) $ (6.0 ) 1.3 8.7 (1.8 ) 2.2 (a) The amortization of actuarial losses and prior service cost is part of total net periodic retirement benefit cost when reclassified to net income. Net periodic retirement benefit cost also includes service cost, interest cost, expected return on assets, and settlement losses. Total service cost is allocated between cost of revenues and selling, general and administrative expenses on a plan-by-plan basis and the remaining net periodic retirement benefit cost items are allocated to interest and other nonoperating income (expense): Three Months Ended March 31, (In millions) 2020 2019 Total net periodic retirement benefit cost included in: Cost of revenues $ 2.4 1.9 Selling, general and administrative expenses 0.5 0.6 Interest and other nonoperating income (expense) 9.1 9.7 (b) 2020 foreign currency translation adjustment amounts arising during the current period reflect primarily the Mexican peso and Brazilian real. (c) Pretax gains and losses on cash flow hedges are classified in the condensed consolidated statements of operations as: • other operating income (expense) ( $26.1 million gain in the three months ended March 31, 2020 and $3.8 million gain in the three months ended March 31, 2019 ) • interest expense ( $1.5 million of expense in the three months ended March 31, 2020 and $1.2 million of expense in the three months ended March 31, 2019 ). The changes in accumulated other comprehensive loss attributable to Brink’s are as follows: (In millions) Benefit Plan Adjustments Foreign Currency Translation Adjustments Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2019 $ (583.0 ) (382.8 ) (13.2 ) (979.0 ) Other comprehensive income (loss) before reclassifications 4.3 (119.9 ) 4.7 (110.9 ) Amounts reclassified from accumulated other comprehensive loss to net income 10.2 — (16.3 ) (6.1 ) Other comprehensive income (loss) attributable to Brink's 14.5 (119.9 ) (11.6 ) (117.0 ) Balance as of March 31, 2020 $ (568.5 ) (502.7 ) (24.8 ) (1,096.0 ) |
Fair value of financial instrum
Fair value of financial instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments Investments in Marketable Securities We have investments in mutual funds and equity securities that are carried at fair value in the financial statements. For these investments, fair value was based on quoted market prices, which we have categorized as a Level 1 valuation. Fixed-Rate Debt The fair value and carrying value of our fixed-rate debt are as follows: (In millions) March 31, 2020 December 31, 2019 Senior unsecured notes Carrying value $ 600.0 600.0 Fair value 540.4 624.7 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 March 31, 2020 , the notional value of our short term outstanding foreign currency forward and swap contracts was $722 million , with average maturities of approximately one month . These foreign currency forward and swap contracts primarily offset exposures in the British pound and the Brazilian real and are not designated as hedges for accounting purposes and, accordingly, changes in their fair value are recorded immediately in earnings. At March 31, 2020 , the fair value of our short term foreign currency contracts was a net liability of approximately $5.4 million , of which $3.5 million was included in prepaid expenses and other and $8.9 million was included in accrued liabilities on the condensed consolidated balance sheet. At December 31, 2019 , the fair value of these foreign currency contracts was a net asset of approximately $0.6 million , of which $0.8 million was included in prepaid expenses and other and $0.2 million was included in accrued liabilities on the condensed consolidated balance sheet. We recognized gains of $1.3 million on our short term foreign currency contracts in the first three months of 2020 and gains of $3.9 million in the first three months of 2019 which are included in other operating income (expense). We additionally recognized losses of $7.7 million in the first three months of 2020 which are included in interest and other nonoperating income and expense since these contracts related to our business acquisitions. In the first quarter of 2019, we entered into a long term cross currency swap contract to hedge exposure in Brazilian real, which is designated as a cash flow hedge for accounting purposes. At March 31, 2020 , the notional value of this long term contract was $116 million with a weighted-average maturity of 2.3 years . At March 31, 2020 , the fair value of the long term cross currency swap contract was a $28.4 million net asset, of which $3.0 million is included in prepaid expenses and other and $25.4 million is included in other assets on the condensed consolidated balance sheet. At December 31, 2019 , the fair value of the long term cross currency swap contract was a $2.1 million net asset, of which a $4.9 million asset is included in other assets and a $2.8 million liability is included in accrued liabilities on the condensed consolidated balance sheet. In the first three months of 2020 , we recognized net gains of $25.4 million on this contract, of which gains of $26.1 million were included in other operating income (expense) to offset transaction losses of $26.1 million and expenses of $0.7 million were included in interest expense. In the first three months of 2019, we recognized net gains of $2.4 million on this contract, of which gains of $3.8 million were included in other operating income (expense) to offset transaction losses of $3.8 million and expenses of $1.4 million were included in interest expense. In the first quarter of 2016, we entered into two interest rate swaps to hedge cash flow risk associated with changes in variable interest rates and that are designated as cash flow hedges for accounting purposes. At March 31, 2020 , the notional value of these contracts was $40 million with a remaining weighted-average maturity of 0.5 years . At March 31, 2020 , the fair value of these interest rates swaps was a liability of $0.4 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 three months of 2020 or 2019. In the first quarter of 2019, we entered into ten interest rate swaps that hedge cash flow risk associated with changes in variable interest rates and that are designated as cash flow hedges for accounting purposes. At March 31, 2020 , the notional value of these contracts was $400 million with a remaining weighted-average maturity of 2.0 years . At March 31, 2020 , the fair value of these interest rate swaps was a net liability of $33.0 million , of which $8.8 million was included in accrued liabilities and $24.2 million was included in other liabilities on the condensed consolidated balance sheet. At December 31, 2019 , the fair value of these interest rate swaps was a net liability of $15.0 million , of which $3.6 million was included in accrued liabilities and $11.4 million was included in other liabilities on the condensed consolidated balance sheet. The effect of these swaps is included in interest expense. Accordingly, $0.8 million was included in interest expense in the first quarter of 2020. The amount included in interest expense in the first quarter of 2019 was not significant. The fair values of these forward and swap contracts are based on the present value of net future cash payments and receipts, which we have categorized as a Level 2 valuation. Other Financial Instruments Other financial instruments include cash and cash equivalents, accounts receivable, floating rate debt, accounts payable and accrued liabilities. The financial statement carrying amounts of these items approximate the fair value. There were no transfers in or out of any of the levels of the valuation hierarchy in the first three months of 2020 . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt March 31, December 31, 2020 2019 Debt: Short-term borrowings Restricted cash borrowings (a) $ 10.1 10.3 Other 4.0 4.0 Total short-term borrowings $ 14.1 14.3 Long-term debt Bank credit facilities: Term loan A (b) $ 757.2 767.0 Senior unsecured notes (c) 593.1 592.9 Revolving Credit Facility 326.0 115.0 Other 4.2 4.9 Financing leases 150.3 149.5 Total long-term debt $ 1,830.8 1,629.3 Total debt $ 1,844.9 1,643.6 Included in: Current liabilities $ 88.1 88.8 Noncurrent liabilities 1,756.8 1,554.8 Total debt $ 1,844.9 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 13 for more details. (b) Amounts outstanding are net of unamortized debt costs of $2.8 million as of March 31, 2020 and $3.0 million as of December 31, 2019 . (c) Amounts outstanding are net of unamortized debt costs of $6.9 million as of March 31, 2020 and $7.1 million as of December 31, 2019 . Long-Term Debt Senior Secured Credit Facility In February 2019 , we amended our senior secured credit facility (the “Senior Secured Credit Facility”) with Wells Fargo Bank, National Association, as former administrative agent and Bank of America, N.A. as successor administrative agent. After the amendment, the Senior Secured Credit Facility consisted of a $1 billion revolving credit facility (the "Revolving Credit Facility") and an $800 million term loan facility (the "Term Loan Facility"). Prior to the amendment, the Term Loan Facility had an outstanding balance of approximately $469 million . The proceeds from the amendment were used to repay outstanding principal under the Revolving Credit Facility as well as certain fees related to the closing of the transaction. Loans under the Revolving Credit Facility mature five years after the amendment date ( February 8, 2024 ). Principal payments are due quarterly for the amended Term Loan Facility equal to 1.25% of the initial loan amount with a final lump sum payment due on February 8, 2024 . Interest rates for the Senior Secured Credit Facility are based on LIBOR plus a margin or an alternate base rate plus a margin. The Revolving Credit Facility allows us to borrow money or issue letters of credit (or otherwise satisfy credit needs) on a revolving basis over the term of the facility. As of March 31, 2020 , $674 million was available under the Revolving Credit Facility. The obligations under the Senior Secured Credit Facility are secured by a first-priority lien on all or substantially all of the assets of the Company and certain of its domestic subsidiaries, including a first-priority lien on equity interests of certain of the Company’s direct and indirect subsidiaries. The Company and certain of its domestic subsidiaries also guarantee the obligations under the Senior Secured Credit Facility. The margin on both LIBOR and alternate base rate borrowings under the Senior Secured Credit Facility is based on the Company’s consolidated net leverage ratio. The margin on LIBOR borrowings, which can range from 1.25% to 2.00% , was 1.75% at March 31, 2020 . The margin on alternate base rate borrowings, which can range from 0.25% to 1.00% , was 0.75% as of March 31, 2020 . We also pay an annual commitment fee on the unused portion of the Revolving Credit Facility based on the Company’s consolidated net leverage ratio. The commitment fee, which can range from 0.15% to 0.30% , was 0.25% as of March 31, 2020 . Senior Unsecured Notes In October 2017 , we issued at par ten -year senior unsecured notes (the "Senior Notes") in the aggregate principal amount of $600 million . The Senior Notes will mature on October 15, 2027 and bear an annual interest rate of 4.625% . The Senior Notes are general unsecured obligations guaranteed by certain of the Company’s existing and future U.S. subsidiaries, which are also guarantors under the Senior Secured Credit Facility. The Senior Notes have not been and will not be registered under the Securities Act of 1933 (the “Securities Act”) or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The notes were offered in the United States only to persons reasonably believed to be qualified institutional buyers in reliance on the exception from registration set forth in Rule 144A under the Securities Act and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. Letter of Credit Facilities and Bank Guarantee Facilities We have three committed letter of credit facilities totaling $80 million , of which approximately $31 million was available at March 31, 2020 . At March 31, 2020 , we had undrawn letters of credit and guarantees of $49 million issued under these facilities. A $10 million facility expires in April 2022 , a $54 million facility expires in December 2022 and a $16 million facility expires in January 2024 . We have two uncommitted letter of credit facilities totaling $55 million , of which approximately $33 million was available at March 31, 2020 . At March 31, 2020 , we had undrawn letters of credit and guarantees of $22 million issued under these facilities. A $40 million facility expires in July 2020 and a $15 million facility has no expiration date. The Senior Secured Credit Facility is also available for issuance of letters of credit and bank guarantees. The Senior Secured Credit Facility, Senior Unsecured Notes, the Letter of Credit Facilities and Bank Guarantee Facilities contain various financial and other covenants. The financial covenants, among other things, limit our ability to provide liens, restrict fundamental changes, limit transactions with affiliates and unrestricted subsidiaries, restrict changes to our fiscal year and to organizational documents, limit asset dispositions, limit the use of proceeds from asset sales, limit sale and leaseback transactions, limit investments, limit the ability to incur debt, restrict certain payments to shareholders, limit negative pledges, limit the ability to change the nature of our business, provide for a maximum consolidated net leverage ratio and provide for minimum coverage of interest costs. If we were not to comply with the terms of our various financing agreements, the repayment terms could be accelerated and the commitments could be withdrawn. An acceleration of the repayment terms under one agreement could trigger the acceleration of the repayment terms under the other financing agreements. We were in compliance with all covenants at March 31, 2020 . |
Credit losses Credit losses
Credit losses Credit losses | 3 Months Ended |
Mar. 31, 2020 | |
Allowance for Credit Loss [Abstract] | |
Credit losses | Credit losses We are exposed to credit losses primarily through sales of our Core and High-Value services to customers with operations in the U.S. as well as customers in more than 100 countries outside the U.S. We typically invoice our customers on a monthly basis and payment terms are generally between 30 and 60 days. We assess our financial assets on a pool basis by aggregating financial assets with similar risk characteristics. We have pooled the financial assets by geographical location, specifically by country, because of the similarities within each country such as customers, payment terms, and services offered. Loss experience is monitored for each pool and we determine historical loss rates for each pool. These historical loss rates are the main assumption used in estimating expected credit losses over the life of the financial assets. We monitor the aging of accounts receivables by country and write off any accounts that are deemed uncollectible. We also monitor any significant economic events to identify any current or expected trends and risks within a pool that could impact the collectability of outstanding accounts receivables balances that were not contemplated or relevant during a previous period. The following table is a rollforward of the allowance for bad debts for the three month period ending March 31, 2020 . Allowance for doubtful accounts: (In millions) December 31, 2019 $ 30.2 Cumulative effect of change in accounting principle 2.3 Provision for uncollectible accounts receivable (a) 12.3 Write-offs less recoveries (6.6 ) Foreign currency exchange effects (0.9 ) March 31, 2020 $ 37.3 (a) The provision in 2020 includes a $9.4 million |
Share-based compensation plans
Share-based compensation plans | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation plans | Share-based compensation plans We have share-based compensation plans to attract and retain employees and nonemployee directors and to more closely align their interests with those of our shareholders. We have outstanding share-based awards granted to employees under the 2013 Equity Incentive Plan ("2013 Plan") and the 2017 Equity Incentive Plan (the "2017 Plan). These plans permit grants of restricted stock, restricted stock units, performance stock, performance units, stock appreciation rights, stock options, as well as other share-based awards to eligible employees. The 2013 Plan and the 2017 Plan also permit cash awards to eligible employees. The 2017 Plan became effective May 2017. No further grants of awards will be made under the the 2013 Plan, although awards under this prior plan remain outstanding. We also have outstanding deferred stock units granted to directors under the 2017 Plan. Share-based awards were previously granted to directors and remain outstanding under the Non-Employee Director's Equity Plan and the Directors’ Stock Accumulation Plan, which has expired. Outstanding awards at March 31, 2020 include performance share units, restricted stock units, deferred stock units, performance-based stock options, time-based stock options and certain awards that will be settled in cash. Compensation Expense Compensation expense is measured using the fair-value-based method. Prior to 2020, for employee and director awards considered equity grants, compensation expense is recognized from the award or grant date to the earlier of the retirement-eligible date or the vesting date. In 2020, the retirement eligibility provisions for many employee awards were changed on a go-forward basis to require a six month notification period prior to actual retirement. For these awards, we recognize expense from the grant date to the vesting date until notification of retirement is provided. When notification is provided, we recognize the remaining expense over the six month notification period. 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 months ended March 31, 2020 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 Three Months Ended March 31, (in millions) 2020 2019 Performance share units $ 4.6 5.8 Restricted stock units 1.3 2.0 Deferred stock units and fees paid in stock 0.3 0.3 Performance-based stock options 0.7 1.1 Time-based vesting stock options 0.3 0.2 Share-based payment expense 7.2 9.4 Income tax benefit (1.6 ) (2.2 ) Share-based payment expense, net of tax $ 5.6 7.2 Performance-Based Stock Options In 2018, 2017 and 2016, we granted performance-based stock options that have a service condition as well as a market condition. In addition, some of the awards granted in 2016 contained a non-financial performance condition. We measure the fair value of these performance-based options at the grant date using a Monte Carlo simulation model. The following table summarizes performance-based stock option activity during the first three months of 2020 : Shares (in thousands) Weighted-Average Grant-Date Fair Value Outstanding balance as of December 31, 2019 1,191.1 $ 11.52 Granted — — Forfeited — — Exercised — — Outstanding balance as of March 31, 2020 1,191.1 $ 11.52 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 three months of 2020 : Shares (in thousands) Weighted-Average Grant-Date Fair Value Outstanding balance as of December 31, 2019 127.0 $ 21.56 Granted 80.8 21.10 Forfeited — — Exercised — — Outstanding balance as of March 31, 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 three months of 2020 : Shares (in thousands) Weighted-Average Grant-Date Fair Value Nonvested balance as of December 31, 2019 172.7 $ 71.87 Granted 68.1 83.15 Forfeited (5.4 ) 78.39 Conversion to cash settled awards (a) (1.3 ) 72.80 Vested (76.6 ) 67.14 Nonvested balance as of March 31, 2020 157.5 $ 78.83 (a) Certain RSUs were modified in the first quarter of 2020 to change the awards' classification from share-settled to cash-settled. The weighted-average grant date fair value per share shown above is the removal of the original fair value. Performance Share Units ("PSUs”) We granted Internal Metric PSUs ("IM PSUs") and Total Shareholder Return PSUs ("TSR PSUs"). IM PSUs contain a performance condition as well as a service condition. We measure the fair value of these PSUs based on the price of Brink’s stock at the grant date, adjusted for a discount for dividends not received or accrued during the vesting period. For the IM PSUs granted in 2020, the performance period is from January 1, 2020 to December 31, 2022. TSR PSUs contain a market condition as well as a service condition. We measure the fair value of PSUs containing a market condition at the grant date using a Monte Carlo simulation model. For the TSR PSUs granted in 2020, the performance period is from January 1, 2020 to December 31, 2022. The following table summarizes all PSU activity during the first three months of 2020 : 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 (6.4 ) 76.12 Conversion to cash settled awards (a) (4.6 ) 65.42 Vested (b) (204.3 ) 56.72 Nonvested balance as of March 31, 2020 591.6 $ 80.64 (a) Certain IM PSUs were modified in the first quarter of 2020 to change the awards' classification from share-settled to cash-settled. The weighted-average grant date fair value per share shown above is the removal of the original fair value. (b) The vested PSUs presented are based on the target amount of the award. In accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the performance period ended December 31, 2019 were 394.0 thousand, compared to target shares of 204.3 thousand. Deferred Stock Units ("DSUs") We granted DSUs to our nonemployee directors in 2019 and in prior years. We measure the fair value of DSUs at the grant date, based on the price of Brink's stock, and, if applicable, adjusted for a discount for dividends not received or accrued during the vesting period. DSUs granted after 2014 will be paid out in shares of Brink's stock on the first anniversary of the grant date, provided that the director has not elected to defer the distribution of shares until a later date. DSUs granted prior to 2015, in general, will be paid out in shares of stock following separation from service. The following table summarizes all DSU activity during the first three months of 2020 : Shares (in thousands) Weighted-Average Grant-Date Fair Value Nonvested balance as of December 31, 2019 12.1 $ 79.69 Granted — — Vested — — Nonvested balance as of March 31, 2020 12.1 $ 79.69 |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Common Stock At March 31, 2020 , we had 100 million shares of common stock authorized and 50.5 million shares issued and outstanding. Dividends We paid regular quarterly dividends on our common stock during the last two years. 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 March 31, 2020 , we had the authority to issue up to 2.0 million shares of preferred stock with a par value of $10 per share. Share Repurchase Program On February 6, 2020, our board of directors authorized a $250 million share repurchase 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. Under the $200 million repurchase program, we repurchased 1.3 million shares for approximately $94 million , or an average cost of $69.35 per share. There was approximately $106 million remaining available under the $200 million repurchase program when it expired. Under the $250 million repurchase program, we are not obligated to repurchase any specific dollar amount or number of shares. The timing and volume of share repurchases may be executed at the discretion of management on an opportunistic basis, or pursuant to trading plans or other arrangements. Share repurchases under this program may be made in the open market, in privately negotiated transactions, or otherwise. No shares have been repurchased under the $250 million share repurchase program. Shares Used to Calculate Earnings per Share Three Months (In millions) 2020 2019 Weighted-average shares: Basic (a) 50.6 50.0 Effect of dilutive stock awards and options 0.7 0.9 Diluted 51.3 50.9 Antidilutive stock awards and options excluded from denominator 0.4 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 ended March 31, 2020 , and 0.3 million in the three months ended March 31, 2019 . |
Supplemental cash flow informat
Supplemental cash flow information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information Three Months (In millions) 2020 2019 Cash paid for: Interest $ 12.1 15.3 Income taxes, net 20.4 11.4 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 three months of 2020 or 2019. Non-cash Investing and Financing Activities We acquired $13.2 million in armored vehicles and other equipment under financing lease arrangements in the first three months of 2020 compared to $12.1 million in armored vehicles and other equipment acquired under financing lease arrangements in the first three months of 2019 . Restricted Cash (Cash Supply Chain Services) In France, we offer services to certain of our customers where we manage some or all of their cash supply chains. Providing this service requires our French subsidiary to take temporary title to the cash received from the management of our customers' cash supply chains until the cash is returned to the customers. As part of this service offering, we have entered into lending arrangements with some of our customers. Cash borrowed under these lending arrangements is used in the process of managing these customers' cash supply chains. The cash for which we have temporary title and the cash borrowed under these customer lending arrangements is restricted and cannot be used for any other purpose other than to service our customers who participate in this service offering. At March 31, 2020 , we held $237.7 million of restricted cash ( $10.1 million represented short-term borrowings, $176.4 million represented restricted cash held for customers, and $51.2 million represented accrued liabilities). At December 31, 2019 , we held $158.0 million of restricted cash ( $10.3 million represented short-term borrowings, $100.3 million represented restricted cash held for customers and $47.4 million represented accrued liabilities). The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows. March 31, December 31, (In millions) 2020 2019 Cash and cash equivalents $ 274.4 311.0 Restricted cash 237.7 158.0 Total, cash, cash equivalents, and restricted cash in the condensed consolidated statements of cash flows $ 512.1 469.0 |
Contingent matters
Contingent matters | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent matters | Contingent matters During the fourth quarter of 2018, we became aware of an investigation initiated by the Chilean Fiscalía Nacional Económica (the Chilean antitrust agency) related to potential anti-competitive practices among competitors in the cash logistics industry in Chile. Because no legal proceedings have been initiated against Brink’s Chile, we cannot estimate the probability of loss or any range of possible loss at this time. It is possible, however, that Brink’s Chile could become the subject of legal or administrative claims or proceedings that could result in a loss in a future period. In addition, we are involved in various other lawsuits and claims in the ordinary course of business. We are not able to estimate the loss or range of losses for some of these matters. We have recorded accruals for losses that are considered probable and reasonably estimable. Except as otherwise noted, we do not believe that it is reasonably possible the ultimate disposition of any of the lawsuits currently pending against the Company could have a material adverse effect on our liquidity, financial position or results of operations. |
Reorganization and Restructurin
Reorganization and Restructuring | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Reorganization and Restructuring | Reorganization and Restructuring Other Restructurings Management periodically implements restructuring actions in targeted sections of our business. As a result of these actions, we recognized net costs of $3.5 million in the first three months of 2019 and $5.6 million in the first three months of 2020 , primarily severance costs. For the current restructuring actions, we expect to incur additional costs between $1 million and $2 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 5.1 0.5 5.6 Payments and utilization (7.3 ) (0.5 ) (7.8 ) Foreign currency exchange effects (0.3 ) — (0.3 ) Balance as of March 31, 2020 $ 4.5 — 4.5 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Incremental Amendment to Term Loan Facility On April 1, 2020 , we entered into an incremental amendment (the “Incremental Amendment”) with Bank of America, N.A., as administrative agent and the lenders party thereto. The Incremental Amendment relates to the senior secured credit facility, dated as of October 17, 2017, as previously amended on February 8, 2019 (the “Senior Secured Credit Facility”). The execution of the Incremental Amendment, among other things, increases the term loan commitments under the Senior Secured Credit Facility by $590 million (the “Incremental Term Loans”). The proceeds of the Incremental Term Loans will be used to (i) pay fees, costs and expenses incurred in connection with the transactions contemplated by the Incremental Amendment and (ii) finance working capital needs, capital expenditures, permitted acquisitions (including the acquisition of the majority of the cash business of U.K.-based G4S plc) and other general corporate purposes. The Incremental Term Loans have the same maturity date, February 8, 2024 , and pricing terms as the existing loans under the Senior Secured Credit Facility. Acquisition of Cash Management Operations 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. As discussed in Note 6, on March 9, 2020 we acquired the G4Si business, which specializes in secure logistics and storage services. On April 6, 2020 we acquired cash management operations in the Netherlands, Belgium, Ireland and Hong Kong. On April 20, 2020 we acquired additional operations in Cyprus, the Czech Republic and Romania. Additionally, on April 28, 2020 we acquired cash management and secure solutions operations in Malaysia and the Dominican Republic. The G4S businesses acquired and to be acquired, which are located primarily in Europe and Asia, generate approximately $800 million in annual revenues. |
Basis of presentation (Policies
Basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements. Actual results could differ materially from these estimates. The most significant estimates are related to goodwill and other long-lived assets, pension and other retirement benefit obligations, legal contingencies, allowance for doubtful accounts, deferred tax assets, purchase price allocations and foreign currency translation. |
Consolidation | Consolidation The condensed consolidated financial statements include our controlled subsidiaries. Control is determined based on ownership rights or, when applicable, based on whether we are considered to be the primary beneficiary of a variable interest entity. See "Venezuela" section below for further information. For controlled subsidiaries that are not wholly-owned, the noncontrolling interests are included in net income and in total equity. Investments in businesses that we do not control, but for which we have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method and our proportionate share of income or loss is recorded in other operating income (expense). Investments in businesses for which we do not have the ability to exercise significant influence over operating and financial policies are accounted for at fair value, if readily determinable, with changes in fair value recognized in net income. For equity investments that do not have a readily determinable fair value, we measure these investments at cost minus impairment, if any, plus or minus changes from observable price changes. All intercompany accounts and transactions have been eliminated in consolidation. |
Foreign Currency Translation | Foreign Currency Translation Our condensed consolidated financial statements are reported in U.S. dollars. Our foreign subsidiaries maintain their records primarily in the currency of the country in which they operate. The method of translating local currency financial information into U.S. dollars depends on whether the economy in which our foreign subsidiary operates has been designated as highly inflationary or not. Economies with a three -year cumulative inflation rate of more than 100% are considered highly inflationary. Assets and liabilities of foreign subsidiaries in non-highly inflationary economies are translated into U.S. dollars using rates of exchange at the balance sheet date. Translation adjustments are recorded in other comprehensive income (loss). Revenues and expenses are translated at rates of exchange in effect during the year. Transaction gains and losses are recorded in net income. Foreign subsidiaries that operate in highly inflationary countries use the U.S. dollar as their functional currency. Local currency monetary assets and liabilities are remeasured into U.S. dollars using rates of exchange as of each balance sheet date, with remeasurement adjustments and other transaction gains and losses recognized in earnings. Other than nonmonetary equity securities, nonmonetary assets and liabilities do not fluctuate with changes in local currency exchange rates to the dollar. For nonmonetary equity securities traded in highly inflationary economies, the fair market value of the equity securities are remeasured at the current exchange rates to determine gain or loss to be recorded in net income. Revenues and expenses are translated at rates of exchange in effect during the year. Argentina We operate in Argentina through wholly owned subsidiaries and a smaller controlled subsidiary (together "Brink's Argentina"). Revenues from Brink's Argentina represented approximately 5% of our consolidated revenues for the first three months of 2020 and 6% of our consolidated revenues for the first three months of 2019 . The operating environment in Argentina continues to present business challenges, including ongoing devaluation of the Argentine peso and significant inflation. In the first three months of 2020 and 2019 , the Argentine peso declined approximately 7% (from 59.9 to 64.5 pesos to the U.S. dollar) and approximately 13% (from 37.6 to 43.3 pesos to the U.S. dollar), respectively. For the year ended December 31, 2019 , the Argentine peso declined approximately 37% (from 37.6 to 59.9 pesos to the U.S. dollar). Beginning July 1, 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, we consolidated Brink's Argentina using our accounting policy for subsidiaries operating in highly inflationary economies beginning with the third quarter of 2018. Argentine peso-denominated monetary assets and liabilities are remeasured at each balance sheet date using the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In the first three months of 2020, we recognized a $1.6 million pretax remeasurement loss. In the first three months of 2019, we recognized a $3.9 million pretax remeasurement loss. At March 31, 2020 , Argentina's economy remains highly inflationary for accounting purposes. At March 31, 2020 , we had net monetary assets denominated in Argentine pesos of $22.8 million (including cash of $19.7 million ). At March 31, 2020 , we had net nonmonetary assets of $151.0 million (including $99.8 million of goodwill). At March 31, 2020 , we had no equity securities denominated in Argentine pesos. During September 2019, the Argentine government announced currency controls on both companies and individuals. The Argentine central bank issued details as to how the exchange control procedures would operate in practice. Under these procedures, central bank approval is required for many transactions, including dividend repatriation abroad. 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 three months ended March 31, 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 Our Venezuelan operations offer transportation and route-based logistics management services for cash and valuables throughout Venezuela. Currency exchange regulations, combined with other government regulations, such as price controls and strict labor laws, significantly limit our ability to make and execute operational decisions at our Venezuelan subsidiaries. As a result of these conditions, we do not meet the accounting criteria for control over our Venezuelan operations and, as a result, we report the results of our investment in our Venezuelan subsidiaries using the cost method of accounting, the basis of which approximates zero. Prior to the imposition of the U.S. government sanctions in 2019, we provided immaterial amounts of financial support to our Venezuela operations. We continue to monitor the situation in Venezuela, including the imposition of sanctions by the U.S. government targeting Venezuela. |
New Accounting Standards | 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 financing leases (previously "capital leases") remains substantially unchanged. We adopted the standard effective January 1, 2019 and 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 elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, 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 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 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 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 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 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 amendments in this ASU eliminate some disclosures that are no longer considered cost beneficial, modify/clarify the specific requirements of certain disclosures and add disclosure requirements for Level 3 fair value measurements. We adopted ASU 2018-13 effective January 1, 2020 and the standard did not have a significant impact on our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changes the way entities recognize impairment of many financial assets. This new guidance requires immediate recognition of estimated credit losses expected to occur over the life of the asset and incorporates estimated, forward-looking data when measuring lifetime 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 previously applicable GAAP. We recognized a cumulative-effect adjustment decreasing retained earnings by $1.7 million on January 1, 2020. The adoption of the standard also resulted in expanded disclosures related to credit losses (see Note 10). In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod tax allocations and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 will be effective for us on January 1, 2021. We are currently evaluating the impact it will have on our financial statements. |
Revenue from contracts with c_2
Revenue from contracts with customers Revenue from contracts with customers (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | The amount of revenue recognized in the three months ended March 31, 2020 that was included in the January 1, 2020 contract liability balance was $4.9 million . This revenue consists of services provided to customers who had prepaid for those services prior to the current year. We also recognized revenue of $0.2 million in the three months ended March 31, 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 March 31, 2020 , the net capitalized costs to obtain contracts was $1.7 million , which is included in other assets on the condensed consolidated balance sheet. Amortization expense was not significant and there were no impairment losses recognized related to these contract costs in the first three months of 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. The majority of our revenues from contracts with customers are earned by providing services and these performance obligations are satisfied over time. Smaller amounts of revenues are earned from selling goods, such as safes, to customers where the performance obligations are satisfied at a point in time. Certain of our high-value services involve the leasing of assets, such as safes, to our customers along with the regular servicing of those safe devices. Revenues related to the leasing of these assets are recognized in accordance with applicable lease guidance, but are included in the above table as the amounts are a small percentage of overall revenues. Contract Balances Contract Asset Although payment terms and conditions can vary, for the majority of our customer contracts, we invoice for all of the services provided to the customer within a monthly period. For certain customer contracts, the timing of our performance may precede our right to invoice the customer for the total transaction price. For example, Brink's affiliates in certain countries, primarily in South America, negotiate annual price adjustments with certain customers and, once the price increases are finalized, the pricing changes are made retroactive to services provided in earlier periods. These retroactive pricing adjustments are estimated and recognized as revenue with a corresponding contract asset in the same period in which the related services are performed. As the estimate of the ultimate transaction price changes, we recognize a cumulative catch-up adjustment for the change in estimate. Contract assets are included in prepaid expenses and other on the condensed consolidated balance sheet. Contract Liability For other customer contracts, we may obtain the right to payment or receive customer payments prior to performing the related services under the contract. When the right to customer payments or receipt of payments precedes our performance, we recognize a contract liability, which is included in accrued liabilities on the condensed consolidated balance sheet. For performance obligations related to the services described above, we generally satisfy our obligations as each action to provide the service to the customer occurs. Because the customers simultaneously receive and consume the benefits from our services, these performance obligations are deemed to be satisfied over time. We use an output method, units of service provided, to recognize revenue because that is the best method to represent the transfer of our services to the customer at the agreed upon rate for each action. Although not as significant as our service offerings, we also sell goods to customers from time to time, such as safe devices. In those transactions, we satisfy our performance obligation at a point in time. We recognize revenue when the goods are delivered to the customer as that is the point in time that best represents when control has transferred to the customer. Our contracts with customers describe the services we can provide along with the fees for each action to provide the service. We typically send invoices to customers for all of the services we have provided within a monthly period and payments are generally due within 30 to 60 days of the invoice date. Although our customer contracts specify the fees for each action to provide service, the majority of the services stated in our contracts do not have a defined quantity over the contract term. Accordingly, the transaction price is considered variable as there is an unknown volume of services that will be rendered over the course of the contract. We recognize revenue for these services in the period in which they are provided to the customer based on the contractual rate at which we have the right to invoice the customer for each action. Some of our contracts with customers contain clauses that define the level of service that the customer will receive. The service level agreements (“SLA”) within those contracts contain specific calculations to determine whether the appropriate level of service has been met within a specific period, which is typically a month. We estimate SLA penalties and recognize the amounts as a reduction to revenue. Taxes collected from customers and remitted to governmental authorities are not included in revenues in the condensed consolidated statements of operations. |
Revenue from contracts with c_3
Revenue from contracts with customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue Disaggregated by Reportable Segment and Type of Service (In millions) Core Services High-Value Services Other Security Services Total Three months ended March 31, 2020 Reportable Segments: North America $ 274.2 170.1 — 444.3 South America 100.4 93.8 3.7 197.9 Rest of World 82.0 117.9 30.7 230.6 Total reportable segments 456.6 381.8 34.4 872.8 Three months ended March 31, 2019 Reportable Segments: North America $ 277.2 157.3 — 434.5 South America 119.2 108.1 3.0 230.3 Rest of World 88.0 119.3 32.9 240.2 Total reportable segments 484.4 384.7 35.9 905.0 |
Contract with Customer, Asset and Liability | The opening and closing balances of receivables, contract assets and contract liabilities related to contracts with customers are as follows: (In millions) Receivables Contract Asset Contract Liability Opening (January 1, 2020) $ 635.6 1.9 12.8 Closing (March 31, 2020) 643.3 1.9 14.5 Increase (decrease) $ 7.7 — 1.7 |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue and Operating Profit from Segments to Consolidated | The following table summarizes our revenues and segment profit for each of our reportable segments and reconciles these amounts to consolidated revenues and operating profit: Revenues Operating Profit Three Months Ended March 31, Three Months Ended March 31, (In millions) 2020 2019 2020 2019 Reportable Segments: North America $ 444.3 434.5 $ 33.0 44.0 South America 197.9 230.3 41.6 43.0 Rest of World 230.6 240.2 15.0 23.8 Total reportable segments 872.8 905.0 89.6 110.8 Reconciling Items: Corporate expenses: General, administrative and other expenses — — (27.3 ) (27.1 ) Foreign currency transaction gains (losses) — — (2.7 ) 0.9 Reconciliation of segment policies to GAAP — — 3.5 0.2 Other items not allocated to segments: Reorganization and Restructuring — — (5.6 ) (3.5 ) Acquisitions and dispositions — — (19.1 ) (17.2 ) Argentina highly inflationary impact — — (2.4 ) (4.3 ) Internal loss (a) — — (9.6 ) — Reporting compliance (b) — — (0.2 ) (1.4 ) Total $ 872.8 905.0 $ 26.2 58.4 (a) See details regarding the impact of the Internal Loss at Note 1. (b) Costs (primarily third party expenses) related to accounting standard implementation. Additional information provided at page 38 . |
Retirement benefits (Tables)
Retirement benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic pension cost for our pension plans were as follows: U.S. Plans Non-U.S. Plans Total (In millions) 2020 2019 2020 2019 2020 2019 Three months ended March 31, Service cost $ — — 2.9 2.5 2.9 2.5 Interest cost on projected benefit obligation 6.6 8.5 2.4 2.6 9.0 11.1 Return on assets – expected (11.5 ) (12.7 ) (2.6 ) (2.6 ) (14.1 ) (15.3 ) Amortization of losses 6.9 5.0 1.2 1.0 8.1 6.0 Settlement loss — — 0.4 0.3 0.4 0.3 Net periodic pension cost $ 2.0 0.8 4.3 3.8 6.3 4.6 |
Schedule of Costs of Retirement Plans | The components of net periodic postretirement cost related to retirement benefits other than pensions were as follows: UMWA Plans Black Lung and Other Plans Total (In millions) 2020 2019 2020 2019 2020 2019 Three months ended March 31, Interest cost on accumulated postretirement benefit obligations $ 3.3 5.0 0.9 0.9 4.2 5.9 Return on assets – expected (3.3 ) (3.3 ) — — (3.3 ) (3.3 ) Amortization of losses 4.0 5.1 2.0 1.1 6.0 6.2 Amortization of prior service credit (1.2 ) (1.1 ) — (0.1 ) (1.2 ) (1.2 ) Net periodic postretirement cost $ 2.8 5.7 2.9 1.9 5.7 7.6 |
Income taxes (Tables)
Income taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Three Months Ended March 31, 2020 2019 Continuing operations Provision (benefit) for income taxes (in millions) $ (12.2 ) 9.7 Effective tax rate 129.8 % 40.1 % |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | (In millions) Estimated Fair Value at Acquisition Date Fair value of purchase consideration Cash paid through March 31, 2020 $ 88.8 Liabilities assumed from seller 1.6 Receivable from seller (0.3 ) Fair value of purchase consideration $ 90.1 Fair value of net assets acquired (a) Cash $ 17.1 Accounts receivable 12.1 Other current assets 3.0 Property and equipment, net 1.8 Intangible assets (b) 20.7 Goodwill (c) 55.5 Other noncurrent assets 4.4 Current liabilities (16.4 ) Noncurrent liabilities (8.1 ) Fair value of net assets acquired $ 90.1 (a) Final allocation will be determined once the valuation is complete. (b) Intangible assets are composed of customer relationships ( $21 million fair value and 10 year amortization period). (c) Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating G4Si’s operations with our existing global services operations. Goodwill has been provisionally assigned to the Global Markets-EMEA reporting unit ( $47.4 million ) and the Global Markets-Asia reporting unit ( $8.1 million ). We do not currently expect goodwill in these reporting units to be deductible for tax purposes. (In millions) Fair Value at Acquisition Date Fair value of purchase consideration Cash paid through March 31, 2020 $ 135.7 Indemnification asset (1.9 ) Fair value of purchase consideration $ 133.8 Fair value of net assets acquired Cash $ 1.4 Accounts receivable 8.9 Other current assets 0.5 Property and equipment, net 2.4 Intangible assets (a) 49.0 Goodwill (b) 85.1 Other noncurrent assets 5.8 Current liabilities (11.4 ) Noncurrent liabilities (7.9 ) Fair value of net assets acquired $ 133.8 (a) Intangible assets are composed of customer relationships ( $47 million fair value and 11 year amortization period), trade name ( $1 million fair value and 1 year amortization period), and non-compete agreement ( $1 million fair value and 5 year amortization period). (b) Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating Rodoban’s operations with our existing Brink’s Brazil operations. All of the goodwill has been assigned to the Brazil reporting unit and is expected to be deductible for tax purposes. (In millions) Estimated Fair Value at Acquisition Date Fair value of purchase consideration Cash paid through March 31, 2020 $ 60.2 Contingent consideration 1.6 Indemnification asset (12.9 ) Fair value of purchase consideration $ 48.9 Fair value of net assets acquired (a) Cash $ 6.5 Accounts receivable 4.5 Property and equipment, net 7.1 Intangible assets (a) 24.4 Goodwill (b) 33.8 Other current and noncurrent assets 1.9 Current liabilities (15.2 ) Noncurrent liabilities (14.1 ) Fair value of net assets acquired $ 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 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. |
Business Acquisition, Pro Forma Information | Below are the actual results included in Brink's consolidated results for the businesses we acquired in the first three months of 2020. (In millions) Revenue Net income (loss) attributable to Brink's Three months ended March 31, 2020 G4Si $ 5.4 0.4 Total $ 5.4 0.4 The pro forma consolidated results of Brink’s presented below reflect a hypothetical ownership as of January 1, 2018 for the businesses we acquired during 2019 and a hypothetical ownership as of January 1, 2019 for the businesses we acquired in the first three months of 2020. (In millions) Revenue Net income (loss) attributable to Brink's Pro forma results of Brink's for the three months ended March 31, 2020 Brink's as reported $ 872.8 1.8 G4Si (a) 16.0 0.5 Total $ 888.8 2.3 2019 Brink's as reported $ 905.0 13.7 G4Si (a) 20.9 0.7 Rodoban (a) 0.6 — Other 2019 acquisitions (a) 12.9 0.5 Total $ 939.4 14.9 (a) Represents amounts prior to acquisition by Brink's. |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | Other comprehensive income (loss), including the amounts reclassified from accumulated other comprehensive loss into earnings, was as follows: Amounts Arising During the Current Period Amounts Reclassified to Net Income (Loss) (In millions) Pretax Income Tax Pretax Income Tax Total Other Comprehensive Income (Loss) Three months ended March 31, 2020 Amounts attributable to Brink's: Benefit plan adjustments $ 4.2 0.1 13.3 (3.1 ) 14.5 Foreign currency translation adjustments (b) (119.9 ) — — — (119.9 ) Gains (losses) on cash flow hedges 10.0 (5.3 ) (24.7 ) 8.4 (11.6 ) (105.7 ) (5.2 ) (11.4 ) 5.3 (117.0 ) Amounts attributable to noncontrolling interests: Foreign currency translation adjustments (0.4 ) — — — (0.4 ) (0.4 ) — — — (0.4 ) Total Benefit plan adjustments (a) 4.2 0.1 13.3 (3.1 ) 14.5 Foreign currency translation adjustments (b) (120.3 ) — — — (120.3 ) Gains (losses) on cash flow hedges (c) 10.0 (5.3 ) (24.7 ) 8.4 (11.6 ) $ (106.1 ) (5.2 ) (11.4 ) 5.3 (117.4 ) Three months ended March 31, 2019 Amounts attributable to Brink's: Benefit plan adjustments $ (1.3 ) 0.2 11.3 (2.7 ) 7.5 Foreign currency translation adjustments 0.3 — — — 0.3 Gains (losses) on cash flow hedges (5.3 ) 1.1 (2.6 ) 0.9 (5.9 ) (6.3 ) 1.3 8.7 (1.8 ) 1.9 Amounts attributable to noncontrolling interests: Foreign currency translation adjustments 0.3 — — — 0.3 0.3 — — — 0.3 Total Benefit plan adjustments (a) (1.3 ) 0.2 11.3 (2.7 ) 7.5 Foreign currency translation adjustments 0.6 — — — 0.6 Gains (losses) on cash flow hedges (c) (5.3 ) 1.1 (2.6 ) 0.9 (5.9 ) $ (6.0 ) 1.3 8.7 (1.8 ) 2.2 (a) The amortization of actuarial losses and prior service cost is part of total net periodic retirement benefit cost when reclassified to net income. Net periodic retirement benefit cost also includes service cost, interest cost, expected return on assets, and settlement losses. Total service cost is allocated between cost of revenues and selling, general and administrative expenses on a plan-by-plan basis and the remaining net periodic retirement benefit cost items are allocated to interest and other nonoperating income (expense): Three Months Ended March 31, (In millions) 2020 2019 Total net periodic retirement benefit cost included in: Cost of revenues $ 2.4 1.9 Selling, general and administrative expenses 0.5 0.6 Interest and other nonoperating income (expense) 9.1 9.7 (b) 2020 foreign currency translation adjustment amounts arising during the current period reflect primarily the Mexican peso and Brazilian real. (c) Pretax gains and losses on cash flow hedges are classified in the condensed consolidated statements of operations as: • other operating income (expense) ( $26.1 million gain in the three months ended March 31, 2020 and $3.8 million gain in the three months ended March 31, 2019 ) • interest expense ( $1.5 million of expense in the three months ended March 31, 2020 and $1.2 million of expense in the three months ended March 31, 2019 ). |
Reclassification Out of Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive loss attributable to Brink’s are as follows: (In millions) Benefit Plan Adjustments Foreign Currency Translation Adjustments Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2019 $ (583.0 ) (382.8 ) (13.2 ) (979.0 ) Other comprehensive income (loss) before reclassifications 4.3 (119.9 ) 4.7 (110.9 ) Amounts reclassified from accumulated other comprehensive loss to net income 10.2 — (16.3 ) (6.1 ) Other comprehensive income (loss) attributable to Brink's 14.5 (119.9 ) (11.6 ) (117.0 ) Balance as of March 31, 2020 $ (568.5 ) (502.7 ) (24.8 ) (1,096.0 ) |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The fair value and carrying value of our fixed-rate debt are as follows: (In millions) March 31, 2020 December 31, 2019 Senior unsecured notes Carrying value $ 600.0 600.0 Fair value 540.4 624.7 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | March 31, December 31, 2020 2019 Debt: Short-term borrowings Restricted cash borrowings (a) $ 10.1 10.3 Other 4.0 4.0 Total short-term borrowings $ 14.1 14.3 Long-term debt Bank credit facilities: Term loan A (b) $ 757.2 767.0 Senior unsecured notes (c) 593.1 592.9 Revolving Credit Facility 326.0 115.0 Other 4.2 4.9 Financing leases 150.3 149.5 Total long-term debt $ 1,830.8 1,629.3 Total debt $ 1,844.9 1,643.6 Included in: Current liabilities $ 88.1 88.8 Noncurrent liabilities 1,756.8 1,554.8 Total debt $ 1,844.9 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 13 for more details. (b) Amounts outstanding are net of unamortized debt costs of $2.8 million as of March 31, 2020 and $3.0 million as of December 31, 2019 . (c) Amounts outstanding are net of unamortized debt costs of $6.9 million as of March 31, 2020 and $7.1 million as of December 31, 2019 . |
Credit losses Credit losses (Ta
Credit losses Credit losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Allowance for Credit Loss [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | Allowance for doubtful accounts: (In millions) December 31, 2019 $ 30.2 Cumulative effect of change in accounting principle 2.3 Provision for uncollectible accounts receivable (a) 12.3 Write-offs less recoveries (6.6 ) Foreign currency exchange effects (0.9 ) March 31, 2020 $ 37.3 (a) The provision in 2020 includes a $9.4 million |
Share-based compensation plans
Share-based compensation plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Compensation expenses for the share-based awards were as follows: Compensation Expense Three Months Ended March 31, (in millions) 2020 2019 Performance share units $ 4.6 5.8 Restricted stock units 1.3 2.0 Deferred stock units and fees paid in stock 0.3 0.3 Performance-based stock options 0.7 1.1 Time-based vesting stock options 0.3 0.2 Share-based payment expense 7.2 9.4 Income tax benefit (1.6 ) (2.2 ) Share-based payment expense, net of tax $ 5.6 7.2 |
Option activity | The following table summarizes performance-based stock option activity during the first three months of 2020 : Shares (in thousands) Weighted-Average Grant-Date Fair Value Outstanding balance as of December 31, 2019 1,191.1 $ 11.52 Granted — — Forfeited — — Exercised — — Outstanding balance as of March 31, 2020 1,191.1 $ 11.52 The following table summarizes time-based stock option activity during the first three months of 2020 : Shares (in thousands) Weighted-Average Grant-Date Fair Value Outstanding balance as of December 31, 2019 127.0 $ 21.56 Granted 80.8 21.10 Forfeited — — Exercised — — Outstanding balance as of March 31, 2020 207.8 $ 21.38 |
Nonvested share activity | The following table summarizes RSU activity during the first three months of 2020 : Shares (in thousands) Weighted-Average Grant-Date Fair Value Nonvested balance as of December 31, 2019 172.7 $ 71.87 Granted 68.1 83.15 Forfeited (5.4 ) 78.39 Conversion to cash settled awards (a) (1.3 ) 72.80 Vested (76.6 ) 67.14 Nonvested balance as of March 31, 2020 157.5 $ 78.83 (a) Certain RSUs were modified in the first quarter of 2020 to change the awards' classification from share-settled to cash-settled. The weighted-average grant date fair value per share shown above is the removal of the original fair value. The following table summarizes all PSU activity during the first three months of 2020 : 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 (6.4 ) 76.12 Conversion to cash settled awards (a) (4.6 ) 65.42 Vested (b) (204.3 ) 56.72 Nonvested balance as of March 31, 2020 591.6 $ 80.64 (a) Certain IM PSUs were modified in the first quarter of 2020 to change the awards' classification from share-settled to cash-settled. The weighted-average grant date fair value per share shown above is the removal of the original fair value. (b) The vested PSUs presented are based on the target amount of the award. In accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the performance period ended December 31, 2019 were 394.0 thousand, compared to target shares of 204.3 The following table summarizes all DSU activity during the first three months of 2020 : Shares (in thousands) Weighted-Average Grant-Date Fair Value Nonvested balance as of December 31, 2019 12.1 $ 79.69 Granted — — Vested — — Nonvested balance as of March 31, 2020 12.1 $ 79.69 |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Weighted Average Number of Shares | Shares Used to Calculate Earnings per Share Three Months (In millions) 2020 2019 Weighted-average shares: Basic (a) 50.6 50.0 Effect of dilutive stock awards and options 0.7 0.9 Diluted 51.3 50.9 Antidilutive stock awards and options excluded from denominator 0.4 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 ended March 31, 2020 , and 0.3 million in the three months ended March 31, 2019 . |
Supplemental cash flow inform_2
Supplemental cash flow information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Three Months (In millions) 2020 2019 Cash paid for: Interest $ 12.1 15.3 Income taxes, net 20.4 11.4 |
Reconciliation of cash, cash equivalents, and restricted cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows. March 31, December 31, (In millions) 2020 2019 Cash and cash equivalents $ 274.4 311.0 Restricted cash 237.7 158.0 Total, cash, cash equivalents, and restricted cash in the condensed consolidated statements of cash flows $ 512.1 469.0 |
Reorganization and Restructur_2
Reorganization and Restructuring Reorganization and Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | 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 5.1 0.5 5.6 Payments and utilization (7.3 ) (0.5 ) (7.8 ) Foreign currency exchange effects (0.3 ) — (0.3 ) Balance as of March 31, 2020 $ 4.5 — 4.5 |
Basis of presentation (Details)
Basis of presentation (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2020USD ($)segment$ / $ | Dec. 31, 2019USD ($)$ / $ | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($)$ / $ | Dec. 31, 2019USD ($)$ / $ | Jan. 01, 2020USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018$ / $ | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Number of operating segments | segment | 3 | |||||||||
Net monetary assets | $ 1,339,000,000 | $ 1,232,600,000 | $ 1,232,600,000 | |||||||
Cash and cash equivalents | 274,400,000 | 311,000,000 | 311,000,000 | |||||||
Goodwill | 794,400,000 | 784,600,000 | 784,600,000 | |||||||
Revenues | 872,800,000 | $ 905,000,000 | ||||||||
Provision for doubtful accounts | 37,300,000 | 30,200,000 | 30,200,000 | |||||||
Cumulative effect of change in accounting principle | (1,700,000) | [1] | $ 0 | [2] | ||||||
Right-of-use assets, net | $ 261,100,000 | $ 270,300,000 | $ 270,300,000 | |||||||
Argentina, Pesos | Argentina | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Percent of Consolidated Revenue | 5.00% | 6.00% | ||||||||
Rate decrease percent | 7.00% | 37.00% | 13.00% | 37.00% | ||||||
Official exchange rate | $ / $ | 64.5 | 59.9 | 43.3 | 59.9 | 37.6 | |||||
Net remeasurement loss | $ (1,600,000) | $ 3,900,000 | ||||||||
Net monetary assets | 22,800,000 | |||||||||
Cash and cash equivalents | 19,700,000 | |||||||||
Nonmonetary assets | 151,000,000 | |||||||||
Goodwill | 99,800,000 | |||||||||
Equity Securities | 0 | |||||||||
Retained Earnings | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect of change in accounting principle | (1,700,000) | [1] | $ 28,800,000 | [2] | ||||||
Accounting Standards Update 2016-02 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Right-of-use assets, net | $ 310,100,000 | |||||||||
Lease liabilities | 320,300,000 | |||||||||
Accounting Standards Update 2018-02 | Retained Earnings | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect of change in accounting principle | $ 28,800,000 | |||||||||
Accounting Standards Update 2016-13 | Retained Earnings | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect of change in accounting principle | $ 1,700,000 | |||||||||
Internal Loss AR Rebuild | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Third-party expense | 200,000 | $ 4,500,000 | ||||||||
Revenues | $ 4,000,000 | |||||||||
Bank fees | 300,000 | |||||||||
Increase to bad debt expense | 9,400,000 | $ 6,400,000 | $ 13,700,000 | |||||||
Provision for doubtful accounts | 23,000,000 | |||||||||
Accounts receivable | $ 30,200,000 | |||||||||
Percent of Accounts Receivable | 76.00% | |||||||||
[1] | Effective January 1, 2020, we adopted the provisions of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. 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. | |||||||||
[2] | 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. |
Revenue from contracts with c_4
Revenue from contracts with customers - disaggregation of revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | $ 872.8 | $ 905 |
Reportable segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 872.8 | 905 |
Reportable segments | Core services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 456.6 | 484.4 |
Reportable segments | High-value services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 381.8 | 384.7 |
Reportable segments | Other security services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 34.4 | 35.9 |
Reportable segments | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 444.3 | 434.5 |
Reportable segments | North America | Core services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 274.2 | 277.2 |
Reportable segments | North America | High-value services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 170.1 | 157.3 |
Reportable segments | North America | Other security services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 0 | 0 |
Reportable segments | South America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 197.9 | 230.3 |
Reportable segments | South America | Core services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 100.4 | 119.2 |
Reportable segments | South America | High-value services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 93.8 | 108.1 |
Reportable segments | South America | Other security services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 3.7 | 3 |
Reportable segments | Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 230.6 | 240.2 |
Reportable segments | Rest of World | Core services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 82 | 88 |
Reportable segments | Rest of World | High-value services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 117.9 | 119.3 |
Reportable segments | Rest of World | Other security services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | $ 30.7 | $ 32.9 |
Revenue from contracts with c_5
Revenue from contracts with customers Revenue from contracts with customers - contract balances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 643.3 | $ 635.6 |
Receivable - increase (decrease) | 7.7 | |
Contract Asset | 1.9 | 1.9 |
Contract asset increase (decrease) | 0 | |
Contract Liability | 14.5 | $ 12.8 |
Contract liability - increase (decrease) | 1.7 | |
Revenue recognized included in beginning balance | 4.9 | |
Revenue - revenue from performance obligation in prior periods | 0.2 | |
Capitalized costs to obtain contracts | $ 1.7 |
Segment information (Details)
Segment information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 872.8 | $ 905 | ||
Operating Profit | 26.2 | 58.4 | ||
Foreign currency transaction gains (losses) | (1.6) | (3.9) | ||
Reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 872.8 | 905 | ||
Operating Profit | 89.6 | 110.8 | ||
Corporate expenses | ||||
Segment Reporting Information [Line Items] | ||||
General, administrative and other expenses | (27.3) | (27.1) | ||
Foreign currency transaction gains (losses) | (2.7) | 0.9 | ||
Reconciliation of segment policies to GAAP | 3.5 | 0.2 | ||
Other items not allocated to segments | ||||
Segment Reporting Information [Line Items] | ||||
Acquisitions and dispositions, Revenues | 0 | 0 | ||
Reorganization and Restructuring | (5.6) | (3.5) | ||
Acquisitions and dispositions, Operating profit | (19.1) | (17.2) | ||
Reporting compliance | (0.2) | 1.4 | ||
Other items not allocated to segments | Argentina | ||||
Segment Reporting Information [Line Items] | ||||
Argentina highly inflationary impact | (2.4) | (4.3) | ||
North America | Reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 444.3 | 434.5 | ||
Operating Profit | 33 | 44 | ||
South America | Reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 197.9 | 230.3 | ||
Operating Profit | 41.6 | 43 | ||
Rest of World | Reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 230.6 | 240.2 | ||
Operating Profit | 15 | 23.8 | ||
Internal Loss AR Rebuild | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 4 | |||
Internal loss | (9.4) | $ (6.4) | $ (13.7) | |
Internal Loss AR Rebuild | Other items not allocated to segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Internal loss | $ (9.6) | $ 0 |
Retirement benefits - Retiremen
Retirement benefits - Retirement Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2.9 | $ 2.5 |
Interest cost on projected benefit obligation | 9 | 11.1 |
Return on assets – expected | (14.1) | (15.3) |
Amortization of losses | 8.1 | 6 |
Settlement loss | 0.4 | 0.3 |
Net periodic pension cost | 6.3 | 4.6 |
Retirement benefits other than pensions | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on projected benefit obligation | 4.2 | 5.9 |
Return on assets – expected | (3.3) | (3.3) |
Amortization of losses | 6 | 6.2 |
Amortization of prior service credit | (1.2) | (1.2) |
Net periodic pension cost | 5.7 | 7.6 |
U.S. Plans | Pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost on projected benefit obligation | 6.6 | 8.5 |
Return on assets – expected | (11.5) | (12.7) |
Amortization of losses | 6.9 | 5 |
Settlement loss | 0 | 0 |
Net periodic pension cost | 2 | 0.8 |
Non-U.S. Plans | Pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2.9 | 2.5 |
Interest cost on projected benefit obligation | 2.4 | 2.6 |
Return on assets – expected | (2.6) | (2.6) |
Amortization of losses | 1.2 | 1 |
Settlement loss | 0.4 | 0.3 |
Net periodic pension cost | 4.3 | 3.8 |
UMWA Plans | Retirement benefits other than pensions | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on projected benefit obligation | 3.3 | 5 |
Return on assets – expected | (3.3) | (3.3) |
Amortization of losses | 4 | 5.1 |
Amortization of prior service credit | (1.2) | (1.1) |
Net periodic pension cost | 2.8 | 5.7 |
Black Lung and Other Plans | Retirement benefits other than pensions | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on projected benefit obligation | 0.9 | 0.9 |
Return on assets – expected | 0 | 0 |
Amortization of losses | 2 | 1.1 |
Amortization of prior service credit | 0 | (0.1) |
Net periodic pension cost | $ 2.9 | $ 1.9 |
Income taxes - Schedule of Comp
Income taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Provision (benefit) for income taxes (in millions) | $ (12.2) | $ 9.7 |
Effective tax rate | 129.80% | 40.10% |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Acquired Entities (Details) $ in Millions | Mar. 09, 2020USD ($) | Sep. 30, 2019 | Jun. 14, 2019 | Jun. 12, 2019 | Jan. 04, 2019USD ($)employeevehiclebranch | Mar. 31, 2020USD ($)employeeacquisition | Dec. 31, 2019USD ($) |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Goodwill | $ 794.4 | $ 784.6 | |||||
G4Si | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date | Mar. 9, 2020 | ||||||
Percentage of shares acquired | 100.00% | ||||||
Annual revenues | $ 90 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Purchase consideration - cash paid | 88.8 | ||||||
Liabilities assumed from seller | 1.6 | ||||||
Receivable from seller | $ (0.3) | ||||||
Fair value of purchase consideration | 90.1 | ||||||
Cash | 17.1 | ||||||
Accounts receivable | 12.1 | ||||||
Other current assets | 3 | ||||||
Property and equipment, net | 1.8 | ||||||
Intangible assets | 20.7 | ||||||
Goodwill | 55.5 | ||||||
Other noncurrent assets | 4.4 | ||||||
Current liabilities | (16.4) | ||||||
Noncurrent liabilities | (8.1) | ||||||
Fair value of net assets acquired | 90.1 | ||||||
Rodoban | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date | Jan. 4, 2019 | ||||||
Percentage of shares acquired | 100.00% | ||||||
Annual revenues | $ 80 | ||||||
Entity number of employees | employee | 2,900 | ||||||
Entity Number of branches | branch | 13 | ||||||
Entity Number of armored vehicles | vehicle | 190 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Purchase consideration - cash paid | $ 135.7 | ||||||
Indemnification asset | (1.9) | ||||||
Fair value of purchase consideration | 133.8 | ||||||
Cash | 1.4 | ||||||
Accounts receivable | 8.9 | ||||||
Other current assets | 0.5 | ||||||
Property and equipment, net | 2.4 | ||||||
Intangible assets | 49 | ||||||
Goodwill | 85.1 | ||||||
Other noncurrent assets | 5.8 | ||||||
Current liabilities | (11.4) | ||||||
Noncurrent liabilities | (7.9) | ||||||
Fair value of net assets acquired | 133.8 | ||||||
Other Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Entity number of employees | employee | 1,300 | ||||||
Number of Businesses Acquired | acquisition | 3 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Purchase consideration - cash paid | $ 60.2 | ||||||
Contingent consideration | 1.6 | ||||||
Indemnification asset | (12.9) | ||||||
Fair value of purchase consideration | 48.9 | ||||||
Cash | 6.5 | ||||||
Accounts receivable | 4.5 | ||||||
Property and equipment, net | 7.1 | ||||||
Intangible assets | 24.4 | ||||||
Goodwill | 33.8 | ||||||
Other noncurrent assets | 1.9 | ||||||
Current liabilities | (15.2) | ||||||
Noncurrent liabilities | (14.1) | ||||||
Fair value of net assets acquired | $ 48.9 | ||||||
BI | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date | Jun. 12, 2019 | ||||||
Percentage of shares acquired | 100.00% | ||||||
COMEF | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date | Jun. 14, 2019 | ||||||
Percentage of shares acquired | 100.00% | ||||||
TVS | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date | Sep. 30, 2019 | ||||||
Percentage of shares acquired | 100.00% | ||||||
Customer relationships | G4Si | |||||||
Business Acquisition [Line Items] | |||||||
Remaining Amortization Period | 10 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Intangible assets | 21 | ||||||
Customer relationships | Rodoban | |||||||
Business Acquisition [Line Items] | |||||||
Remaining Amortization Period | 11 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Intangible assets | 47 | ||||||
Trade names | Rodoban | |||||||
Business Acquisition [Line Items] | |||||||
Remaining Amortization Period | 1 year | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Intangible assets | 1 | ||||||
Noncompete agreements | Rodoban | |||||||
Business Acquisition [Line Items] | |||||||
Remaining Amortization Period | 5 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Intangible assets | $ 1 | ||||||
EMEA | G4Si | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Goodwill | 47.4 | ||||||
Asia Pacific | G4Si | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Goodwill | $ 8.1 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Pro Forma (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Acquisition [Line Items] | ||
Actual revenue results included in consolidation | $ 5.4 | |
Actual net income results included in consolidation | 0.4 | |
Revenues | 872.8 | $ 905 |
Net income attributable to Brink’s | 1.8 | 13.7 |
Pro forma revenue results | 888.8 | 939.4 |
Pro forma net income results | 2.3 | 14.9 |
Transaction costs | 5.5 | 0.4 |
G4Si | ||
Business Acquisition [Line Items] | ||
Actual revenue results included in consolidation | 5.4 | |
Actual net income results included in consolidation | 0.4 | |
Pro forma revenue results | 16 | 20.9 |
Pro forma net income results | $ 0.5 | 0.7 |
Rodoban | ||
Business Acquisition [Line Items] | ||
Pro forma revenue results | 0.6 | |
Pro forma net income results | 0 | |
Other Acquisitions | ||
Business Acquisition [Line Items] | ||
Pro forma revenue results | 12.9 | |
Pro forma net income results | $ 0.5 |
Acquisitions and Dispositions A
Acquisitions and Dispositions Acquisitions and Dispositions - Dispositions (Details) - France security services company - USD ($) $ in Millions | Jan. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Date | Jan. 1, 2020 | ||
Percent of shares sold | 100.00% | ||
Net sales price | $ 11 | ||
Gain on sale of business | $ 4.7 | ||
Annual revenues | $ 3 |
Accumulated other comprehensi_3
Accumulated other comprehensive income (loss) - Amounts in OCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | $ (106.1) | $ (6) |
Amounts Arising During the Current Period, Income Tax | (5.2) | 1.3 |
Amounts Reclassified to Net Income (Loss), Pretax | (11.4) | 8.7 |
Amounts Reclassified to Net Income (Loss), Income Tax | 5.3 | (1.8) |
Other comprehensive income (loss) | (117.4) | 2.2 |
Cost of revenues | 693.4 | 702.7 |
Selling, general and administrative expenses | 148.1 | 141.7 |
Interest and other income (expense) | (15.6) | (11.2) |
Other operating income (expense) | 5.1 | 2.2 |
Interest expense | 20 | 23 |
Benefit plan adjustments | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | 4.2 | (1.3) |
Amounts Arising During the Current Period, Income Tax | 0.1 | 0.2 |
Amounts Reclassified to Net Income (Loss), Pretax | 13.3 | 11.3 |
Amounts Reclassified to Net Income (Loss), Income Tax | (3.1) | (2.7) |
Other comprehensive income (loss) | 14.5 | 7.5 |
Foreign currency translation adjustments | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | (119.9) | 0.3 |
Amounts Arising During the Current Period, Income Tax | 0 | 0 |
Amounts Reclassified to Net Income (Loss), Pretax | 0 | 0 |
Amounts Reclassified to Net Income (Loss), Income Tax | 0 | 0 |
Other comprehensive income (loss) | (119.9) | 0.3 |
Gains (losses) on cash flow hedges | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | 10 | (5.3) |
Amounts Arising During the Current Period, Income Tax | (5.3) | 1.1 |
Amounts Reclassified to Net Income (Loss), Pretax | (24.7) | (2.6) |
Amounts Reclassified to Net Income (Loss), Income Tax | 8.4 | 0.9 |
Other comprehensive income (loss) | (11.6) | (5.9) |
Gains (losses) on cash flow hedges | Reclassification out of accumulated other comprehensive income | ||
Other Comprehensive Income Loss [Line Items] | ||
Other operating income (expense) | (26.1) | (3.8) |
Interest expense | 1.5 | 1.2 |
AOCI Attributable to Parent | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | (105.7) | (6.3) |
Amounts Arising During the Current Period, Income Tax | (5.2) | 1.3 |
Amounts Reclassified to Net Income (Loss), Pretax | (11.4) | 8.7 |
Amounts Reclassified to Net Income (Loss), Income Tax | 5.3 | (1.8) |
Other comprehensive income (loss) | (117) | 1.9 |
Foreign currency translation adjustments | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | (0.4) | 0.3 |
Amounts Arising During the Current Period, Income Tax | 0 | 0 |
Amounts Reclassified to Net Income (Loss), Pretax | 0 | 0 |
Amounts Reclassified to Net Income (Loss), Income Tax | 0 | 0 |
Other comprehensive income (loss) | (0.4) | 0.3 |
AOCI Attributable to Noncontrolling Interest | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | (0.4) | 0.3 |
Amounts Arising During the Current Period, Income Tax | 0 | 0 |
Amounts Reclassified to Net Income (Loss), Pretax | 0 | 0 |
Amounts Reclassified to Net Income (Loss), Income Tax | 0 | 0 |
Other comprehensive income (loss) | (0.4) | 0.3 |
Benefit plan adjustments(a) | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | 4.2 | (1.3) |
Amounts Arising During the Current Period, Income Tax | 0.1 | 0.2 |
Amounts Reclassified to Net Income (Loss), Pretax | 13.3 | 11.3 |
Amounts Reclassified to Net Income (Loss), Income Tax | (3.1) | (2.7) |
Other comprehensive income (loss) | 14.5 | 7.5 |
Benefit plan adjustments(a) | Reclassification out of accumulated other comprehensive income | ||
Other Comprehensive Income Loss [Line Items] | ||
Cost of revenues | 2.4 | 1.9 |
Selling, general and administrative expenses | 0.5 | 0.6 |
Interest and other income (expense) | 9.1 | 9.7 |
Foreign currency translation adjustments | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | (120.3) | 0.6 |
Amounts Arising During the Current Period, Income Tax | 0 | 0 |
Amounts Reclassified to Net Income (Loss), Pretax | 0 | 0 |
Amounts Reclassified to Net Income (Loss), Income Tax | 0 | 0 |
Other comprehensive income (loss) | (120.3) | 0.6 |
Gains (losses) on cash flow hedges(c) | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | 10 | (5.3) |
Amounts Arising During the Current Period, Income Tax | (5.3) | 1.1 |
Amounts Reclassified to Net Income (Loss), Pretax | (24.7) | (2.6) |
Amounts Reclassified to Net Income (Loss), Income Tax | 8.4 | 0.9 |
Other comprehensive income (loss) | $ (11.6) | $ (5.9) |
Accumulated other comprehensi_4
Accumulated other comprehensive income (loss) - Reclasses Out Of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | $ 191.8 | |
Other comprehensive income (loss) | (117.4) | $ 2.2 |
Ending balance | 66.3 | |
Benefit Plan Adjustments | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | (583) | |
Other comprehensive income (loss) before reclassifications | 4.3 | |
Amounts reclassified from accumulated other comprehensive loss to net income | 10.2 | |
Other comprehensive income (loss) | 14.5 | 7.5 |
Ending balance | (568.5) | |
Foreign Currency Translation Adjustments | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | (382.8) | |
Other comprehensive income (loss) before reclassifications | (119.9) | |
Amounts reclassified from accumulated other comprehensive loss to net income | 0 | |
Other comprehensive income (loss) | (119.9) | 0.3 |
Ending balance | (502.7) | |
Gains (Losses) on Cash Flow Hedges | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | (13.2) | |
Other comprehensive income (loss) before reclassifications | 4.7 | |
Amounts reclassified from accumulated other comprehensive loss to net income | (16.3) | |
Other comprehensive income (loss) | (11.6) | (5.9) |
Ending balance | (24.8) | |
AOCI Attributable to Parent | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | (979) | |
Other comprehensive income (loss) before reclassifications | (110.9) | |
Amounts reclassified from accumulated other comprehensive loss to net income | (6.1) | |
Other comprehensive income (loss) | (117) | $ 1.9 |
Ending balance | $ (1,096) |
Fair value of financial instr_3
Fair value of financial instruments Fair value of financial instruments (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($)derivative_instrument | Dec. 31, 2019USD ($) | Mar. 31, 2016derivative_instrument | |
Debt Instrument [Line Items] | ||||
Foreign currency derivative instrument not designated as hedging gains (losses) | $ (7.7) | $ 0 | ||
Other operating income (expense) | 5.1 | 2.2 | ||
Foreign currency transaction gains (losses) | (1.6) | (3.9) | ||
Interest expense | 20 | 23 | ||
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||||
Debt Instrument [Line Items] | ||||
Notional value | $ 722 | |||
Weighted average maturity | 1 month | |||
Not Designated as Hedging Instrument | Foreign Exchange Contract | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Fair value of foreign currency contract, net | $ 5.4 | $ 0.6 | ||
Designated as Hedging Instrument | Currency Swap | ||||
Debt Instrument [Line Items] | ||||
Notional value | $ 116 | |||
Weighted average maturity | 2 years 3 months 18 days | |||
Foreign currency derivative instrument gains (losses) | $ 25.4 | 2.4 | ||
Other operating income (expense) | (26.1) | (3.8) | ||
Foreign currency transaction gains (losses) | 26.1 | 3.8 | ||
Interest expense | 0.7 | $ 1.4 | ||
Designated as Hedging Instrument | Currency Swap | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Fair value of contract, asset position | 28.4 | 2.1 | ||
Designated as Hedging Instrument | Interest Rate Swap | ||||
Debt Instrument [Line Items] | ||||
Notional value | $ 40 | |||
Weighted average maturity | 6 months | |||
Number of interest rate swaps | derivative_instrument | 2 | |||
Designated as Hedging Instrument | $400 million interest rate swap | ||||
Debt Instrument [Line Items] | ||||
Notional value | $ 400 | |||
Weighted average maturity | 2 years | |||
Number of interest rate swaps | derivative_instrument | 10 | |||
Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 0.8 | |||
Fair value of swap, net | 33 | 15 | ||
Prepaid expenses and other | Not Designated as Hedging Instrument | Foreign Exchange Contract | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Fair value of foreign currency contract, net | 3.5 | 0.8 | ||
Prepaid expenses and other | Designated as Hedging Instrument | Currency Swap | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Fair value of contract, asset position | 3 | |||
Prepaid expenses and other | Designated as Hedging Instrument | Interest Rate Swap | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Fair value of swap, net | 0.2 | |||
Accrued liabilities | Not Designated as Hedging Instrument | Foreign Exchange Contract | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Fair value of foreign currency contract, net | 8.9 | 0.2 | ||
Accrued liabilities | Designated as Hedging Instrument | Currency Swap | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Fair value of contract, liability position | 2.8 | |||
Accrued liabilities | Designated as Hedging Instrument | Interest Rate Swap | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Fair value of swap, net | 0.4 | |||
Accrued liabilities | Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Fair value of swap, liability position | 8.8 | 3.6 | ||
Other assets | Designated as Hedging Instrument | Currency Swap | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Fair value of contract, liability position | 25.4 | 4.9 | ||
Other liabilities | Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Fair value of swap, liability position | 24.2 | 11.4 | ||
Six hundred million senior unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Carrying value | 600 | 600 | ||
Six hundred million senior unsecured notes | Level 3 | ||||
Debt Instrument [Line Items] | ||||
Fair value | 540.4 | $ 624.7 | ||
Other operating income (expense) | Not Designated as Hedging Instrument | Foreign Exchange Contract | ||||
Debt Instrument [Line Items] | ||||
Foreign currency derivative instrument not designated as hedging gains (losses) | 1.3 | $ 3.9 | ||
Interest and other nonoperating expense | Not Designated as Hedging Instrument | Foreign Exchange Contract | ||||
Debt Instrument [Line Items] | ||||
Foreign currency derivative instrument not designated as hedging gains (losses) | $ 7.7 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 14.1 | $ 14.3 |
Long-term Debt Types [Abstract] | ||
Total long-term debt | 1,830.8 | 1,629.3 |
Total Debt | 1,844.9 | 1,643.6 |
Long-term Debt by Current and Noncurrent [Abstract] | ||
Current liabilities | 88.1 | 88.8 |
Noncurrent liabilities | 1,756.8 | 1,554.8 |
Term Loan A | Senior Secured Credit Facility - Amended | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 757.2 | 767 |
Other Disclosures [Abstract] | ||
Debt issue costs | 2.8 | 3 |
Senior unsecured notes | Six hundred million senior unsecured notes | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 593.1 | 592.9 |
Other Disclosures [Abstract] | ||
Debt issue costs | 6.9 | 7.1 |
Revolving Credit Facility | ||
Long-term Debt Types [Abstract] | ||
Debt | 326 | 115 |
Other Non-US Dollar-denominated Facilities | ||
Long-term Debt Types [Abstract] | ||
Debt | 4.2 | 4.9 |
Financing leases | ||
Long-term Debt Types [Abstract] | ||
Financing leases | 150.3 | 149.5 |
Restricted Cash Borrowings | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 10.1 | 10.3 |
Other | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 4 | $ 4 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions | Feb. 08, 2019USD ($) | Oct. 31, 2017USD ($) | Mar. 31, 2020USD ($)facility |
Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Commitment Fee | 0.25% | ||
Senior Secured Credit Facility - Original | |||
Debt Instrument [Line Items] | |||
Debt, aggregate principal amount | $ 469 | ||
Letter of Credit | Three Committed Letter of Credit Facilities | |||
Debt Instrument [Line Items] | |||
Available capacity amount | $ 31 | ||
Number of term loan facilities | facility | 3 | ||
Amount available | $ 80 | ||
Undrawn letters of credit | 49 | ||
Letter of Credit | Ten Million Committed Facility | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity | 10 | ||
Letter of Credit | Fifty Four Million Committed Letter Of Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity | 54 | ||
Letter of Credit | Sixteen Million Committed Letter Of Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity | 16 | ||
Letter of Credit | Two Unsecured Letter of Credit Facilities | |||
Debt Instrument [Line Items] | |||
Available capacity amount | $ 33 | ||
Number of term loan facilities | facility | 2 | ||
Amount available | $ 55 | ||
Undrawn letters of credit | 22 | ||
Letter of Credit | Forty Million Unsecured Letter Of Credit Facility | |||
Debt Instrument [Line Items] | |||
Amount available | 40 | ||
Letter of Credit | Fifteen Million Unsecured Letter Of Credit Facility | |||
Debt Instrument [Line Items] | |||
Amount available | $ 15 | ||
Minimum | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Commitment Fee | 0.15% | ||
Maximum | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Commitment Fee | 0.30% | ||
Term Loan A | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Debt, aggregate principal amount | $ 800 | ||
Quarterly principal payment, percentage | 1.25% | ||
Revolving Credit Facility | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity | $ 1,000 | ||
Line of credit maturity period | 5 years | ||
Available capacity amount | $ 674 | ||
Senior unsecured notes | Six hundred million senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Debt, aggregate principal amount | $ 600 | ||
Interest Rate Percentage | 4.625% | ||
Debt maturity period | 10 years | ||
LIBOR | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.75% | ||
LIBOR | Senior Secured Credit Facility - Amended | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.25% | ||
LIBOR | Senior Secured Credit Facility - Amended | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 2.00% | ||
Base Rate | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 0.75% | ||
Base Rate | Senior Secured Credit Facility - Amended | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 0.25% | ||
Base Rate | Senior Secured Credit Facility - Amended | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.00% |
Credit losses Credit losses (De
Credit losses Credit losses (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)country | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | |
Valuation Allowance [Line Items] | |||
Number of Countries in which Entity Operates | country | 100 | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for doubtful accounts, beginning balance | $ 30,200,000 | ||
Retained earnings | 449,900,000 | $ 457,400,000 | |
Provision for uncollectible accounts receivable(a) | 12,300,000 | ||
Write-offs less recoveries | (6,600,000) | ||
Foreign currency exchange effects | (900,000) | ||
Allowance for doubtful accounts, ending balance | 37,300,000 | ||
Internal Loss AR Rebuild | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Provision for uncollectible accounts receivable(a) | 9,400,000 | ||
Allowance for doubtful accounts, ending balance | $ 23,000,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Retained earnings | $ 2,300,000 |
Share-based compensation plan_2
Share-based compensation plans - Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment expense | $ 7.2 | $ 9.4 |
Income tax benefit | (1.6) | (2.2) |
Share-based payment expense, net of tax | 5.6 | 7.2 |
Performance Shares Units PSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment expense | 4.6 | 5.8 |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment expense | 1.3 | 2 |
Deferred Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment expense | 0.3 | 0.3 |
Performance-Based Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment expense | 0.7 | 1.1 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment expense | $ 0.3 | $ 0.2 |
Share-based compensation plan_3
Share-based compensation plans - Stock activity - RSU, PSU, DSU (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock Units | ||
Shares (in thousands) | ||
Nonvested, beginning balance, shares | 172,700 | |
Granted, shares | 68,100 | |
Forfeited, shares | (5,400) | |
Conversion to cash settled awards, shares | (1,300) | |
Vested, shares | (76,600) | |
Nonvested, ending balance, shares | 157,500 | 172,700 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested, beginning balance (dollars per share) | $ 71.87 | |
Granted (dollars per share) | 83.15 | |
Forfeited (dollars per share) | 78.39 | |
Converted to cash settled awards (dollars per share) | 72.80 | |
Vested (dollars per share) | 67.14 | |
Nonvested, ending balance (dollars per share) | $ 78.83 | $ 71.87 |
Performance Shares Units PSU | ||
Shares (in thousands) | ||
Nonvested, beginning balance, shares | 564,200 | |
Granted, shares | 242,700 | |
Forfeited, shares | (6,400) | |
Conversion to cash settled awards, shares | (4,600) | |
Vested, shares | (204,300) | |
Nonvested, ending balance, shares | 591,600 | 564,200 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested, beginning balance (dollars per share) | $ 70.10 | |
Granted (dollars per share) | 84.60 | |
Forfeited (dollars per share) | 76.12 | |
Converted to cash settled awards (dollars per share) | 65.42 | |
Vested (dollars per share) | 56.72 | |
Nonvested, ending balance (dollars per share) | $ 80.64 | $ 70.10 |
Actual shares earned and distributed (shares) | 394,000 | |
Target shares (shares) | 204,300 | |
Deferred Stock Units | ||
Shares (in thousands) | ||
Nonvested, beginning balance, shares | 12,100 | |
Granted, shares | 0 | |
Vested, shares | 0 | |
Nonvested, ending balance, shares | 12,100 | 12,100 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested, beginning balance (dollars per share) | $ 79.69 | |
Granted (dollars per share) | 0 | |
Vested (dollars per share) | 0 | |
Nonvested, ending balance (dollars per share) | $ 79.69 | $ 79.69 |
Share-based compensation plan_4
Share-based compensation plans - Option Activity (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Performance-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, shares | shares | 1,191,100 |
Granted, shares | shares | 0 |
Forfeited, shares | shares | 0 |
Exercised, shares | shares | 0 |
Ending balance, shares | shares | 1,191,100 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (dollars per share) | $ / shares | $ 11.52 |
Granted (dollars per share) | $ / shares | 0 |
Forfeited (dollars per share) | $ / shares | 0 |
Exercised (dollars per share) | $ / shares | 0 |
Ending balance (dollars per share) | $ / shares | $ 11.52 |
Time Based Vesting Option | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, shares | shares | 127,000 |
Granted, shares | shares | 80,800 |
Forfeited, shares | shares | 0 |
Exercised, shares | shares | 0 |
Ending balance, shares | shares | 207,800 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (dollars per share) | $ / shares | $ 21.56 |
Granted (dollars per share) | $ / shares | 21.10 |
Forfeited (dollars per share) | $ / shares | 0 |
Exercised (dollars per share) | $ / shares | 0 |
Ending balance (dollars per share) | $ / shares | $ 21.38 |
Capital Stock Capital Stock (De
Capital Stock Capital Stock (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Mar. 31, 2020 | Feb. 06, 2020 | May 08, 2017 | |
Subsequent Event [Line Items] | ||||
Shares of common stock authorized (in shares) | 100,000,000 | 100,000,000 | ||
Shares issued and outstanding (in shares) | 50,100,000 | 50,500,000 | ||
Maximum shares allowed for issuance (in shares) | 2,000,000 | |||
Par value (in dollars per share) | $ 10 | |||
Stock repurchase program remaining amount | $ 106,000,000 | |||
250 Million Share Repurchase Program | ||||
Subsequent Event [Line Items] | ||||
Stock repurchase program amount | $ 250,000,000 | |||
200 Million Share Repurchase Program | ||||
Subsequent Event [Line Items] | ||||
Stock repurchase program amount | $ 200,000,000 | |||
Stock repurchased and retired during period, shares | 1,300,000 | |||
Stock repurchase program amount used | $ 94,000,000 | |||
Average price per share (in dollars per share) | $ 69.35 |
Capital Stock - Shares Used To
Capital Stock - Shares Used To Calculate Earnings (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Basic (shares) | 50.6 | 50 |
Effect of dilutive stock options and awards (shares) | 0.7 | 0.9 |
Diluted (shares) | 51.3 | 50.9 |
Antidilutive stock options and awards excluded from denominator (shares) | 0.4 | 0.1 |
Deferred compensation common stock unit (shares) | 0.3 | 0.3 |
Supplemental cash flow inform_3
Supplemental cash flow information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Interest | $ 12.1 | $ 15.3 | ||
Income taxes, net | 20.4 | 11.4 | ||
Financing Leases | 13.2 | 12.1 | ||
Restricted cash | 237.7 | $ 158 | ||
Cash and cash equivalents | 274.4 | 311 | ||
Cash, Cash Equivalents, and Restricted Cash | 512.1 | $ 380.3 | 469 | $ 479.5 |
Cash from Short Term Borrowings | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | 10.1 | 10.3 | ||
Cash Held From Customers | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | 176.4 | 100.3 | ||
Deposits liability | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | $ 51.2 | $ 47.4 |
Reorganization and Restructur_3
Reorganization and Restructuring (Details) - Other Restructurings - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, beginning balance | $ 7 | |
Expense | 5.6 | |
Payments and utilization | (7.8) | |
Foreign currency exchange effects | (0.3) | |
Restructuring Reserve, ending balance | 4.5 | |
Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 1 | |
Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 2 | |
Severance Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 5.6 | $ 3.5 |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, beginning balance | 7 | |
Expense | 5.1 | |
Payments and utilization | (7.3) | |
Foreign currency exchange effects | (0.3) | |
Restructuring Reserve, ending balance | 4.5 | |
Other Restructuring | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, beginning balance | 0 | |
Expense | 0.5 | |
Payments and utilization | (0.5) | |
Foreign currency exchange effects | 0 | |
Restructuring Reserve, ending balance | $ 0 |
Subsequent Events Subsequent _2
Subsequent Events Subsequent Events (Details) - USD ($) $ in Millions | Apr. 28, 2020 | Apr. 20, 2020 | Apr. 06, 2020 | Apr. 01, 2020 | Mar. 09, 2020 | Mar. 26, 2020 |
G4Si | ||||||
Subsequent Event [Line Items] | ||||||
Acquisition date | Mar. 9, 2020 | |||||
Annual revenues | $ 90 | |||||
G4S Cash Management Operations | ||||||
Subsequent Event [Line Items] | ||||||
Annual revenues | $ 800 | |||||
Subsequent Event | Senior Secured Credit Facility - Amended II | ||||||
Subsequent Event [Line Items] | ||||||
Subsequent event date | Apr. 1, 2020 | |||||
Maturity date | Feb. 8, 2024 | |||||
Subsequent Event | Term Loan A | Senior Secured Credit Facility - Amended II | ||||||
Subsequent Event [Line Items] | ||||||
Debt, aggregate principal amount increase | $ 590 | |||||
Subsequent Event | G4S Cash Management Operations Tranche I | ||||||
Subsequent Event [Line Items] | ||||||
Acquisition date | Apr. 6, 2020 | |||||
Subsequent Event | G4S Cash Management Operations Tranche II | ||||||
Subsequent Event [Line Items] | ||||||
Acquisition date | Apr. 20, 2020 | |||||
Subsequent Event | G4S Cash Management Operations Tranche III | ||||||
Subsequent Event [Line Items] | ||||||
Acquisition date | Apr. 28, 2020 |