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Cost Associated With Restructuring Activities
9 Months Ended
Sep. 30, 2014
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]

Note 11Costs associated with restructuring activities

We were recently notified by a significant customer of our Brink’s Netherlands business that it expects to terminate its contract for our Cash Management Services as of June 30, 2015. As a result, we plan to restructure our Netherlands operations during 2015. Restructuring activities are expected to include closure of up to three leased facilities, disposing of certain armored trucks and other assets, and reducing the workforce by approximately 600 employees.

Revenues from this customer were €49 million ($63 million) during the first nine months of 2014 and are expected to be €30 million ($37 million using exchange rates as of the end of September) in the first half of 2015. Revenues from the customer are projected to be less than $5 million in 2016. Revenues, profits and losses, including the restructuring charges described below, of our Netherlands business are included in the EMEA operating segment.

Estimated severance and other employee benefit costs. We currently estimate severance and other employee benefit costs could range up to $16 million (using exchange rates as of the end of September). The actual amount will depend on the number of employees that receive severance and the calculation of each employee’s severance. We recognized our best estimate of severance and other employee benefit costs as a charge of $10.5 million in the third quarter of 2014. The loss is included in Cost of revenues in our consolidated statements of income (loss) for the quarter and will be adjusted in future quarters.

We expect to begin negotiating with employee representatives in November the key terms of individual employee severance payments. The key terms include the number of years of service, monthly wages per employee and a multiplying factor. We have estimated the number of employees that will be paid severance during 2015. Our estimate has been adjusted for a projected number of employees that will not receive severance payments because they will transfer to the successor business during 2015, terminate voluntarily prior to June 2015, or elect to receive early retirement benefits instead of severance payments.

Fixed asset impairment. We recognized an impairment charge of $5.1 million during the third quarter of 2014, which reduced the fixed assets owned by the Netherlands subsidiary from a net book value of $13.7 million to $8.6 million. The impairment charge is reported in Other operating income (expense) in our consolidated statements of income (loss). Fair value was determined by the market approach, which is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable assets, assuming the highest and best use for the asset.

Lease termination costs for branch facilities. We have not yet recognized any termination costs related to leases of facilities that we expect to close. These costs will be recognized during the period the leased facilities are substantially vacated. The contractual amount of lease termination costs projected to be owed if the facilities are closed during July 2015 is approximately $1 million.