Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment information

Note 2 – Segment Information

We identify our operating segments based on how ourchief 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 operating profit or loss, excluding income and expenses not allocated to segments. 

Effective December 2014, we reorganized the majority of Brink’s country operations under two business units: Largest 5 Markets (including U.S., France, Mexico, Brazil and Canada), and Global Markets (for the 36 countries besides the Largest 5 Markets). Country operations typically provide Cash-in-Transit (“CIT”) Services, ATM Services, Cash Management Services and Global Services.  Reporting lines within these two business units are supplemented by a matrixed, centralized management of the Global Services operations. The Payment Services business has a centralized organizational structure.

As a result of this reorganization, beginning in 2014, we report financial results in the following nine operating segments:

• Each of the five countries within Largest 5 Markets (U.S., France, Mexico, Brazil and Canada)
• Each of the three regions within Global Markets (Latin America, EMEA and Asia)
• Payment Services

We currently serve customers in more than 100 countries, including 41 countries where we operate subsidiaries.

The primary services of the reportable segments include:

• CIT Services – armored vehicle transportation of valuables
• ATM Services – replenishing and maintaining customers’ automated teller machines; providing network infrastructure services
• Global Services – secure international transportation of valuables
• Cash Management Services

• Currency and coin counting and sorting; deposit preparation and reconciliations; other cash management services
• Safe and safe control device installation and servicing (including our patented CompuSafe^® service)
• Check and cash processing services for banking customers (“Virtual Vault Services”)
• Check imaging services for banking customers

• Payment Services – bill payment and processing services on behalf of utility companies and other billers at any of our Brink’s or Brink’s operated payment locations in Latin America and Brink’s Money™ general purpose reloadable prepaid cards and payroll cards in the U.S.
• Guarding Services – protection of airports, offices, and certain other locations in Europe with or without electronic surveillance, access control, fire prevention and highly trained patrolling personnel

					Revenues				Operating Profit (Loss)
					Years Ended December 31,				Years Ended December 31,
(In millions)					2014	2013	2012		2014	2013	2012
Reportable Segments:
	U.S.			$	727.8	707.5	706.7	$	22.8	12.8	32.0
	France				517.4	517.6	511.4		39.4	44.5	39.7
	Mexico				388.2	423.9	395.0		9.6	26.9	17.7
	Brazil				364.1	354.4	363.6		34.2	41.1	39.9
	Canada				179.7	191.4	187.5		12.8	10.5	9.3
		Largest 5 Markets			2,177.2	2,194.8	2,164.2		118.8	135.8	138.6
	Latin America				592.4	854.2	744.4		90.6	136.2	90.0
	EMEA				556.3	540.6	503.1		52.5	47.0	45.3
	Asia				139.8	134.2	125.9		23.1	21.0	14.8
		Global Markets			1,288.5	1,529.0	1,373.4		166.2	204.2	150.1
		Payment Services			96.6	54.8	40.0		(4.9)	1.0	1.2
			Total reportable segments		3,562.3	3,778.6	3,577.6		280.1	341.0	289.9
Reconciling Items:
	Corporate items:
		General, administrative and other expenses			-	-	-		(108.8)	(116.4)	(87.4)
		Reconciliation of segment policies to GAAP			-	-	-		(2.3)	2.7	4.5
	Other items not allocated to segments:
		FX devaluation in Venezuela			-	-	-		(142.7)	(14.6)	-
		U.S. retirement plans (see note 3)			-	-	-		(73.1)	(52.9)	(56.2)
		2014 Reorganization and Restructuring			-	-	-		(21.8)	-	-
		Acquisitions and dispositions			-	-	-		49.4	5.8	14.6
		Mexican settlement losses (see note 3)			-	-	-		(5.9)	(2.4)	(3.2)
		Share-based compensation adj. (see note 17)			-	-	-		(2.4)	-	-
Total				$	3,562.3	3,778.6	3,577.6	$	(27.5)	163.2	162.2

FX devaluation in VenezuelaThe rate we use to remeasure operations in Venezuela declined 16% in February 2013 (from 5.3 to 6.3 bolivars to the U.S. dollar) and 88% in March 2014 (from 6.3 to 50 bolivars to the U.S. dollar).  Expenses related to remeasured net monetary assets were $121.6 million in 2014 and $13.4 million in 2013.  In addition, nonmonetary assets were not remeasured to a lower basis when the currency devalued.  Instead, under highly inflationary accounting rules, these assets retained their higher historical bases, which excess is recognized in earnings as the asset is consumed resulting in incremental expense until the excess bases are depleted.   Higher expenses related to nonmonetary assets were $21.1 million in 2014 and $1.2 million in 2013.  Expenses related to these Venezuelan devaluations have not been allocated to segment results.

2014 Reorganization and Restructuring  Brink’s reorganized and restructured its business in December 2014, eliminating the management roles and structures in its former Latin America and EMEA regions and is substantially complete with implementing a plan to reduce the cost structure of various country operations by eliminating approximately 1,700 positions across its global workforce.  Severance costs of $21.8 million associated with these actions were recognized in 2014. These amounts have not been allocated to segment results.

Acquisitions and dispositions  Gains and losses related to acquisitions and dispositions that have not been allocated to segment results are described below:

• Brink’s sold an equity investment in a CIT business in Peru and recognized a $44.3 million gain in 2014.  Other divestiture gains in 2014 were $0.6 million. Equity earnings related to our former investment in Peru recognized in prior periods ($3.8 million in 2014, $6.1 million in 2013 and $5.8 million in 2012).
• Adjustments to the 2010 business acquisition gain for Mexico ($0.7 million favorable adjustment in 2014, $1.1 million in unfavorable adjustments in 2013 and a $2.1 million favorable adjustment in 2012).
• Adjustments to the purchase price of the January 2013 acquisition of RedeTrel in Brazil ($1.7 million of favorable adjustments in 2013).
• The $0.9 million impairment in 2013 of an intangible asset acquired in the 2009 India acquisition.
• A 2012 gain on the sale of real estate in Venezuela ($7.2 million).
• Unfavorable adjustments of $0.5 million recognized in 2012 related to various acquisitions and dispositions

				Years Ended December 31,
(In millions)				2014	2013	2012
Capital Expenditures by Business Segment
U.S.			$	31.1	42.4	39.0
France				17.9	13.8	15.8
Mexico				13.3	24.5	27.4
Brazil				14.7	13.2	12.4
Canada				6.4	9.6	9.1
	Largest 5 Markets			83.4	103.5	103.7
Latin America				22.4	26.8	37.3
EMEA				9.2	8.9	9.8
Asia				3.6	2.4	4.4
	Global Markets			35.2	38.1	51.5
	Payment Services			0.8	1.5	1.8
		Segments		119.4	143.1	157.0
	Corporate items			16.7	29.8	13.9
Total			$	136.1	172.9	170.9
Depreciation and Amortization by Business Segment
Depreciation and amortization of property and equipment:
	U.S.		$	49.8	49.1	45.6
	France			19.3	22.1	20.6
	Mexico			19.6	19.2	14.3
	Brazil			8.8	9.0	8.7
	Canada			8.5	8.3	9.0
		Largest 5 Markets		106.0	107.7	98.2
	Latin America			21.9	22.5	21.1
	EMEA			13.6	16.9	12.5
	Asia			3.2	3.7	3.6
		Global Markets		38.7	43.1	37.2
		Payment Services		2.2	2.2	1.3
	Segments			146.9	153.0	136.7
		Corporate items		9.5	6.4	4.5
		Depreciation and amortization of property and equipment		156.4	159.4	141.2
Amortization of intangible assets:
	U.S.			-	0.2	0.3
	France			0.3	0.4	0.3
	Brazil			1.4	1.7	2.1
		Largest 5 Markets		1.7	2.3	2.7
	Latin America			0.3	0.4	0.4
	EMEA			1.1	1.2	2.3
	Asia			0.9	1.0	1.1
		Global Markets		2.3	2.6	3.8
		Payment Services		1.5	1.5	0.7
	Amortization of intangible assets			5.5	6.4	7.2
Total			$	161.9	165.8	148.4

				December 31,
(In millions)				2014	2013	2012
Assets held by Segment
U.S.			$	327.4	330.0	345.2
France				244.7	246.6	244.1
Mexico				258.9	285.1	269.3
Brazil				165.0	165.8	165.7
Canada				92.3	96.5	120.4
	Largest 5 Markets			1,088.3	1,124.0	1,144.7
Latin America				296.0	521.1	418.0
EMEA				308.0	382.8	433.9
Asia				109.2	115.1	148.3
	Global Markets			713.2	1,019.0	1,000.2
	Payment Services			63.7	72.0	27.9
		Segments		1,865.2	2,215.0	2,172.8
	Corporate items			327.0	283.0	381.1
Total			$	2,192.2	2,498.0	2,553.9

Long-Lived Assets by Geographic Area(a)
Non-U.S.:
	France	$	75.7	88.5	94.3
	Mexico		114.4	136.8	133.7
	Brazil		47.9	47.6	47.9
	Canada		47.9	50.7	68.4
	Other		175.5	216.3	240.0
	Subtotal		461.4	539.9	584.3
U.S.			208.1	218.8	209.5
Total		$	669.5	758.7	793.8
(a) Long-lived assets include only property and equipment.
			Years Ended December 31,
(In millions)			2014	2013	2012
Revenues by Geographic Area(a)
Outside the U.S.:
	France	$	517.4	542.5	535.5
	Mexico		388.5	424.1	395.0
	Brazil		442.3	392.0	388.3
	Canada		179.7	191.4	187.5
	Other		1,305.8	1,521.1	1,364.6
	Subtotal		2,833.7	3,071.1	2,870.9
U.S.			728.6	707.5	706.7
Total		$	3,562.3	3,778.6	3,577.6

(a)Revenues are recorded in the country where service is initiated or performed. No single customer represents more than 10% of total revenue. Geographic disclosures of country revenues include the Payments Services segment in Mexico, Brazil, Colombia and the U.S.

		December 31,
(In millions)		2014	2013	2012
Net assets outside the U.S.
France	$	96.3	110.8	79.2
Other EMEA countries		146.1	180.6	192.9
Mexico		88.4	101.2	131.5
Brazil		111.1	105.2	103.1
Other Latin America countries		182.4	273.0	203.6
Asian countries		69.2	72.7	89.1
Canada		53.4	69.3	43.2
Total	$	746.9	912.8	842.6

(In millions)			2014	2013	2012
Information about Unconsolidated Equity Affiliates held by Global Markets – Asia Segment:
	Carrying value of investments at December 31	$	2.7	2.3	1.8
	Undistributed earnings at December 31		1.1	0.8	0.4
	Share of earnings included in Brink's consolidated earnings during the year		0.5	0.7	0.2
Brink’s sold an equity investment in a CIT business in Peru in 2014. This investment is not allocated to segments. The carrying value was $13.5 million at December 31, 2013, and $13.8 million at December 31, 2012. The equity earnings from this investment were $3.8 million in 2014, $6.1 million in 2013 and $5.8 million in 2012.