Segment information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment information

Segment information

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

• Cash-in-Transit (“CIT”) Services – armored vehicle transportation of valuables

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

• Global Services – secure international transportation of valuables

• Cash Management Services

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

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

◦ 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 and Brazil with or without electronic surveillance, access control, fire prevention and highly trained patrolling personnel

We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions.  Our CODM is our President and Chief Executive Officer.  Our CODM evaluates performance and allocates resources to our operating segments 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

• 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. Results from Venezuela operations are also excluded from our segment results due to management’s inability to allocate, generate or redeploy resources in-country or globally. We also exclude certain costs, gains and losses related to acquisitions and dispositions that are special in nature. For additional information about these reconciling items see "Other Items Not Allocated to Segment" on pages 32-33.

During the first quarter of 2017, we implemented changes to our organizational and management structure that resulted in changes to our operating segments for financial reporting purposes. Through the fiscal year ended December 31, 2016, our business was reported in nine operating segments: U.S., France, Mexico, Brazil, Canada, Latin America, EMEA, Asia and Payment Services. Changes in our management reporting structure during the first quarter of 2017 required us to conduct an assessment in accordance with ASC Topic 280, Segment Reporting, to determine our operating segments.

As a result of this assessment, we now have the following operating segments:

• North America

• South America

• Rest of World (ROW).

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 June 30,			Three Months Ended June 30,
(In millions)	2017		2016	2017			2016
Reportable Segments:
North America	$	311.0	300.8	$	16.7		3.8
South America	204.6		170.1	35.7			21.3
Rest of World	244.0		245.6	25.1			27.5
Total reportable segments	759.6		716.5	77.5			52.6
Reconciling Items:
Corporate expenses:
General, administrative and other expenses	—		—	(18.3		)	(16.1	)
Foreign currency transaction gains (losses)	—		—	1.4			1.4
Reconciliation of segment policies to GAAP	—		—	(0.9		)	1.3
Other items not allocated to segments:
Venezuela operations	46.3		21.5	(4.5		)	1.6
Reorganization and Restructuring	—		—	(5.6		)	(2.1	)
Acquisitions and dispositions	—		1.5	(1.3		)	(6.5	)
Total	$	805.9	739.5	$	48.3		32.2

	Revenues			Operating Profit
	Six Months Ended June 30,			Six Months Ended June 30,
(In millions)	2017		2016	2017			2016
Reportable Segments:
North America	$	615.6	593.5	$	26.9		7.5
South America	406.8		327.1	74.4			45.0
Rest of World	477.5		484.8	50.4			45.9
Total reportable segments	1,499.9		1,405.4	151.7			98.4
Reconciling Items:
Corporate expenses:
General, administrative and other expenses	—		—	(37.5		)	(33.7	)
Foreign currency transaction gains (losses)	—		—	0.2			2.7
Reconciliation of segment policies to GAAP	—		—	(1.8		)	4.5
Other items not allocated to segments:
Venezuela operations	94.4		53.6	16.6			4.3
Reorganization and Restructuring	—		—	(9.7		)	(8.1	)
Acquisitions and dispositions	—		2.3	(0.3		)	(12.4	)
Total	$	1,594.3	1,461.3	$	119.2		55.7

See "Other Items Not Allocated to Segment" on pages 32–33 for explanations of each of the other items not allocated to segments.

	Six Months Ended June 30,
(In millions)	2017		2016
Capital Expenditures by Reportable Segment
North America	$	39.0	20.1
South America	15.3		7.3
Rest of World	10.1		12.4
Total reportable segments	64.4		39.8
Corporate items	5.5		2.7
Venezuela	1.2		2.5
Total	$	71.1	45.0
Depreciation and Amortization by Reportable Segment
Depreciation and amortization of property and equipment:
North America	$	33.6	33.6
South America	10.6		9.0
Rest of World	14.6		15.0
Total reportable segments	58.8		57.6
Corporate items	5.7		5.4
Venezuela	0.8		0.3
Reorganization and Restructuring	1.5		—
Depreciation and amortization of property and equipment	66.8		63.3
Amortization of intangible assets:
North America	0.1		—
South America	1.2		1.1
Rest of World	0.4		0.7
Amortization of intangible assets	1.7		1.8
Total	$	68.5	65.1

	June 30,		December 31,
(In millions)	2017		2016
Assets held by Reportable Segment
North America	$	726.1	629.4
South America	462.3		371.4
Rest of World	721.4		621.8
Total reportable segments	1,909.8		1,622.6
Corporate items	335.7		321.3
Venezuela	43.5		50.9
Total	$	2,289.0	1,994.8