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.


•	Commercial Security Systems – design and installation of security systems in designated markets in Europe


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

We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. Our CODM is our President and Chief Executive Officer. Our CODM evaluates performance and allocates resources to 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 the Venezuelan government's restrictions that have prevented us from repatriating funds. We also exclude certain costs, gains and losses related to acquisitions and dispositions.

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 have the following operating segments:


•	North America


•	South America


•	Rest of World.

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 September 30,			Three Months Ended September 30,
(In millions)	2017		2016	2017			2016
Reportable Segments:
North America	$	316.5	297.0	$	16.9		8.9
South America	247.4		186.7	47.7			35.0
Rest of World	264.8		251.2	33.3			33.0
Total reportable segments	828.7		734.9	97.9			76.9

Reconciling Items:
Corporate expenses:
General, administrative and other expenses	—		—	(22.4		)	(12.9	)
Foreign currency transaction gains (losses)	—		—	0.5			(0.2	)
Reconciliation of segment policies to GAAP	—		—	0.4			(0.8	)
Other items not allocated to segments:
Venezuela operations	20.8		20.4	2.5			2.2
Reorganization and Restructuring	—		—	(6.4		)	(2.3	)
Acquisitions and dispositions^(a)	—		0.5	(6.1		)	(3.2	)
Total	$	849.5	755.8	$	66.4		59.7



	Revenues			Operating Profit
	Nine Months Ended September 30,			Nine Months Ended September 30,
(In millions)	2017		2016	2017			2016
Reportable Segments:
North America	$	932.1	890.5	$	43.9		16.4
South America	654.2		513.8	123.3			81.1
Rest of World	742.3		736.0	84.1			79.6
Total reportable segments	2,328.6		2,140.3	251.3			177.1

Reconciling Items:
Corporate expenses:
General, administrative and other expenses	—		—	(59.9		)	(46.6	)
Foreign currency transaction gains	—		—	0.7			2.5
Reconciliation of segment policies to GAAP	—		—	(1.4		)	3.7
Other items not allocated to segments:
Venezuela operations	115.2		74.0	19.1			6.5
Reorganization and Restructuring	—		—	(16.1		)	(10.4	)
Acquisitions and dispositions^(a)	—		2.8	(8.1		)	(17.4	)
Total	$	2,443.8	2,217.1	$	185.6		115.4

(a)

In the third quarter of 2017, our CODM elected to view the performance of the segments without certain costs that relate to the Company’s previously announced acquisition strategy. As a result, amortization of acquisition-related intangible assets is excluded from segment results and is included in "Acquisitions and dispositions." Prior period information has been revised to reflect this change.



	Nine Months Ended September 30,
(In millions)	2017		2016

Capital Expenditures by Reportable Segment
North America	$	64.4	30.6
South America	23.3		13.1
Rest of World	20.7		21.2
Total reportable segments	108.4		64.9
Corporate items	6.6		3.8
Venezuela	2.4		3.7
Total	$	117.4	72.4

Depreciation and Amortization by Reportable Segment
Depreciation and amortization of property and equipment:
North America	$	50.7	49.7
South America	16.9		14.1
Rest of World	22.5		22.4
Total reportable segments	90.1		86.2
Corporate items	8.7		8.2
Venezuela	1.2		0.4
Reorganization and Restructuring	2.0		—
Depreciation and amortization of property and equipment	102.0		94.8

Amortization of intangible assets^(a)	4.4		2.7
Total	$	106.4	97.5


(a)	As previously stated, amortization of acquisition-related intangible assets has been excluded from reportable segment amounts.



	September 30,		December 31,
(In millions)	2017		2016

Assets held by Reportable Segment
North America	$	761.4	629.4
South America	738.1		371.4
Rest of World	744.0		621.8
Total reportable segments	2,243.5		1,622.6
Corporate items	410.5		321.3
Venezuela	44.4		50.9
Total	$	2,698.4	1,994.8