Segment information

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

Core 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

High-value services include:


•	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)


◦	Vaulting 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 Brazil, Colombia, Panama and Mexico and Brink’s Money™ general purpose reloadable prepaid cards and payroll cards in the U.S.

Other security services include:


•	Commercial Security Systems Services – 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 are excluded from segment results. Prior to deconsolidation (see Note 1), results from Venezuela operations were 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 of assets and of businesses. Incremental third party costs 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 also excluded from segment results.

We have three 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 June 30,			Three Months Ended June 30,
(In millions)	2018		2017	2018			2017
Reportable Segments:
North America	$	324.0	311.0	$	26.1		16.8
South America	233.3		204.6	46.1			36.4
Rest of World	266.8		244.0	26.2			25.4
Total reportable segments	824.1		759.6	98.4			78.6

Reconciling Items:
Corporate expenses:
General, administrative and other expenses	—		—	(20.9		)	(18.3	)
Foreign currency transaction gains (losses)	—		—	(1.7		)	1.4
Reconciliation of segment policies to GAAP	—		—	0.4			(0.9	)
Other items not allocated to segments:
Venezuela operations	25.6		46.3	(1.2		)	(4.5	)
Reorganization and Restructuring	—		—	(4.5		)	(5.6	)
Acquisitions and dispositions	—		—	(7.4		)	(2.4	)
Reporting compliance^(a)	—		—	(1.4		)	—
Total	$	849.7	805.9	$	61.7		48.3


(a)	Accounting standard implementation and material weakness mitigation. Additional information provided at page 41.



	Revenues			Operating Profit
	Six Months Ended June 30,			Six Months Ended June 30,
(In millions)	2018		2017	2018			2017
Reportable Segments:
North America	$	644.1	615.6	$	46.7		27.0
South America	488.1		406.8	101.7			75.6
Rest of World	545.2		477.5	51.8			50.8
Total reportable segments	1,677.4		1,499.9	200.2			153.4

Reconciling Items:
Corporate expenses:
General, administrative and other expenses	—		—	(52.0		)	(37.5	)
Foreign currency transaction gains (losses)	—		—	(2.2		)	0.2
Reconciliation of segment policies to GAAP	—		—	1.7			(1.8	)
Other items not allocated to segments:
Venezuela operations	51.4		94.4	2.3			16.6
Reorganization and Restructuring	—		—	(8.2		)	(9.7	)
Acquisitions and dispositions	—		—	(13.9		)	(2.0	)
Reporting compliance^(a)	—		—	(1.4		)	—
Total	$	1,728.8	1,594.3	$	126.5		119.2


(a)	Accounting standard implementation and material weakness mitigation. Additional information provided at page 41.