THE BRINK’S COMPANY | ||
(Exact name of registrant as specified in its charter) |
Virginia | 54-1317776 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
(In millions, except for per share amounts) | March 31, 2019 | December 31, 2018 | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 283.2 | 343.4 | |||
Restricted cash | 97.1 | 136.1 | ||||
Accounts receivable, net | 641.0 | 599.5 | ||||
Prepaid expenses and other | 133.0 | 127.5 | ||||
Total current assets | 1,154.3 | 1,206.5 | ||||
Right-of-use assets, net | 292.2 | — | ||||
Property and equipment, net | 698.1 | 699.4 | ||||
Goodwill | 751.7 | 678.6 | ||||
Other intangibles | 266.6 | 228.9 | ||||
Deferred income taxes | 235.6 | 236.5 | ||||
Other | 203.5 | 186.1 | ||||
Total assets | $ | 3,602.0 | 3,236.0 | |||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Short-term borrowings | $ | 23.4 | 28.9 | |||
Current maturities of long-term debt | 69.5 | 53.5 | ||||
Accounts payable | 147.0 | 174.6 | ||||
Accrued liabilities | 553.6 | 502.1 | ||||
Restricted cash held for customers | 51.9 | 90.3 | ||||
Total current liabilities | 845.4 | 849.4 | ||||
Long-term debt | 1,596.5 | 1,471.6 | ||||
Accrued pension costs | 191.9 | 196.9 | ||||
Retirement benefits other than pensions | 365.7 | 366.1 | ||||
Lease liabilities | 237.6 | — | ||||
Deferred income taxes | 16.5 | 16.7 | ||||
Other | 169.1 | 168.7 | ||||
Total liabilities | 3,422.7 | 3,069.4 | ||||
Commitments and contingent liabilities (notes 4, 8 and 14) | ||||||
Equity: | ||||||
The Brink's Company ("Brink's") shareholders: | ||||||
Common stock, par value $1 per share: | ||||||
Shares authorized: 100.0 | ||||||
Shares issued and outstanding: 2019 - 49.9; 2018 - 49.7 | 49.9 | 49.7 | ||||
Capital in excess of par value | 630.9 | 628.2 | ||||
Retained earnings | 464.7 | 429.1 | ||||
Accumulated other comprehensive loss | (980.2 | ) | (953.3 | ) | ||
Brink’s shareholders | 165.3 | 153.7 | ||||
Noncontrolling interests | 14.0 | 12.9 | ||||
Total equity | 179.3 | 166.6 | ||||
Total liabilities and equity | $ | 3,602.0 | 3,236.0 |
Three Months Ended March 31, | ||||||
(In millions, except for per share amounts) | 2019 | 2018 | ||||
Revenues | $ | 905.0 | 879.1 | |||
Costs and expenses: | ||||||
Cost of revenues | 702.7 | 693.6 | ||||
Selling, general and administrative expenses | 141.7 | 123.1 | ||||
Total costs and expenses | 844.4 | 816.7 | ||||
Other operating income (expense) | (2.2 | ) | 2.4 | |||
Operating profit | 58.4 | 64.8 | ||||
Interest expense | (23.0 | ) | (15.0 | ) | ||
Interest and other nonoperating income (expense) | (11.2 | ) | (13.1 | ) | ||
Income from continuing operations before tax | 24.2 | 36.7 | ||||
Provision for income taxes | 9.7 | 11.4 | ||||
Income from continuing operations | 14.5 | 25.3 | ||||
Income from discontinued operations, net of tax | — | 0.2 | ||||
Net income | 14.5 | 25.5 | ||||
Less net income attributable to noncontrolling interests | 0.8 | 3.2 | ||||
Net income attributable to Brink’s | 13.7 | 22.3 | ||||
Amounts attributable to Brink’s | ||||||
Continuing operations | 13.7 | 22.1 | ||||
Discontinued operations | — | 0.2 | ||||
Net income attributable to Brink’s | $ | 13.7 | 22.3 | |||
Income per share attributable to Brink’s common shareholders(a): | ||||||
Basic: | ||||||
Continuing operations | $ | 0.27 | 0.43 | |||
Discontinued operations | — | — | ||||
Net income | $ | 0.27 | 0.44 | |||
Diluted: | ||||||
Continuing operations | $ | 0.27 | 0.42 | |||
Discontinued operations | — | — | ||||
Net income | $ | 0.27 | 0.43 | |||
Weighted-average shares | ||||||
Basic | 50.0 | 50.9 | ||||
Diluted | 50.9 | 52.1 | ||||
Cash dividends paid per common share | $ | 0.15 | 0.15 |
Three Months Ended March 31, | ||||||
(In millions) | 2019 | 2018 | ||||
Net income | $ | 14.5 | 25.5 | |||
Benefit plan adjustments: | ||||||
Benefit plan actuarial gains | 11.3 | 14.8 | ||||
Benefit plan prior service costs | (1.3 | ) | (0.8 | ) | ||
Total benefit plan adjustments | 10.0 | 14.0 | ||||
Foreign currency translation adjustments | 0.6 | 1.0 | ||||
Gains (losses) on cash flow hedges | (7.9 | ) | 0.4 | |||
Other comprehensive income before tax | 2.7 | 15.4 | ||||
Provision for income taxes | 0.5 | 3.2 | ||||
Other comprehensive income | 2.2 | 12.2 | ||||
Comprehensive income | 16.7 | 37.7 | ||||
Less comprehensive income attributable to noncontrolling interests | 1.1 | 4.3 | ||||
Comprehensive income attributable to Brink's | $ | 15.6 | 33.4 |
Three-Months ended March 31, 2019 | |||||||||||||||||||||
(In millions) | Shares | Common Stock | Capital in Excess of Par Value | Retained Earnings | AOCI* | Noncontrolling Interests | Total | ||||||||||||||
Balance as of December 31, 2018 | 49.7 | $ | 49.7 | 628.2 | 429.1 | (953.3 | ) | 12.9 | 166.6 | ||||||||||||
Cumulative effect of change in accounting principle(a) | — | — | — | 28.8 | (28.8 | ) | — | — | |||||||||||||
Net income | — | — | — | 13.7 | — | 0.8 | 14.5 | ||||||||||||||
Other comprehensive income | — | — | — | — | 1.9 | 0.3 | 2.2 | ||||||||||||||
Shares repurchased | — | — | (0.5 | ) | 0.5 | — | — | — | |||||||||||||
Dividends to: | |||||||||||||||||||||
Brink’s common shareholders ($0.15 per share) | — | — | — | (7.4 | ) | — | — | (7.4 | ) | ||||||||||||
Share-based compensation: | |||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||
Compensation expense | — | — | 9.4 | — | — | — | 9.4 | ||||||||||||||
Other share-based benefit transactions | 0.2 | 0.2 | (6.2 | ) | — | — | — | (6.0 | ) | ||||||||||||
Balance as of March 31, 2019 | 49.9 | $ | 49.9 | 630.9 | 464.7 | (980.2 | ) | 14.0 | 179.3 |
Three-Months ended March 31, 2018 | |||||||||||||||||||||
(In millions) | Shares | Common Stock | Capital in Excess of Par Value | Retained Earnings | AOCI* | Noncontrolling Interests | Total | ||||||||||||||
Balance as of December 31, 2017 | 50.5 | $ | 50.5 | 628.6 | 564.9 | (926.6 | ) | 20.8 | 338.2 | ||||||||||||
Cumulative effect of change in accounting principle(b) | — | — | — | 3.3 | (1.1 | ) | — | 2.2 | |||||||||||||
Net income | — | — | — | 22.3 | — | 3.2 | 25.5 | ||||||||||||||
Other comprehensive income | — | — | — | — | 11.1 | 1.1 | 12.2 | ||||||||||||||
Dividends to: | |||||||||||||||||||||
Brink’s common shareholders ($0.15 per share) | — | — | — | (7.6 | ) | — | — | (7.6 | ) | ||||||||||||
Noncontrolling interests | — | — | — | — | — | (0.7 | ) | (0.7 | ) | ||||||||||||
Share-based compensation: | |||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||
Compensation expense | — | — | 6.8 | — | — | — | 6.8 | ||||||||||||||
Other share-based benefit transactions | 0.4 | 0.4 | (10.5 | ) | — | — | — | (10.1 | ) | ||||||||||||
Balance as of March 31, 2018 | 50.9 | $ | 50.9 | 624.9 | 582.9 | (916.6 | ) | 24.4 | 366.5 |
(a) | Effective January 1, 2019, we adopted the provisions of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. We recognized a cumulative effect adjustment to January 1, 2019 retained earnings as a result of adopting this standard. See Note 1 for further details. |
(b) | Effective January 1, 2018, we adopted the provisions of ASU 2014-09, Revenue From Contracts with Customers, ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, and ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. We recognized a cumulative effect adjustment to January 1, 2018 retained earnings as a result of adopting each of these standards. See Note 1 for further details of the impact of each standard. |
Three Months Ended March 31, | ||||||
(In millions) | 2019 | 2018 | ||||
Cash flows from operating activities: | ||||||
Net income | $ | 14.5 | 25.5 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Income from discontinued operations, net of tax | — | (0.2 | ) | |||
Depreciation and amortization | 47.8 | 38.8 | ||||
Share-based compensation expense | 9.4 | 6.8 | ||||
Deferred income taxes | 1.1 | (4.1 | ) | |||
Gains on sale of property, equipment and marketable securities | (0.2 | ) | (0.5 | ) | ||
Impairment losses | 1.2 | 1.8 | ||||
Retirement benefit funding (more) less than expense: | ||||||
Pension | 0.3 | 2.8 | ||||
Other than pension | 4.5 | 5.2 | ||||
Remeasurement losses (gains) due to Argentina and Venezuela currency devaluations | 3.9 | (2.8 | ) | |||
Other operating | 3.2 | 3.1 | ||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||
Accounts receivable and income taxes receivable | (36.8 | ) | (32.7 | ) | ||
Accounts payable, income taxes payable and accrued liabilities | (47.9 | ) | (13.6 | ) | ||
Restricted cash held for customers | (36.8 | ) | 44.0 | |||
Customer obligations | 11.3 | (0.5 | ) | |||
Prepaid and other current assets | (10.2 | ) | (15.7 | ) | ||
Other | (3.3 | ) | (1.1 | ) | ||
Net cash (used) provided by operating activities | (38.0 | ) | 56.8 | |||
Cash flows from investing activities: | ||||||
Capital expenditures | (35.2 | ) | (36.7 | ) | ||
Acquisitions, net of cash acquired | (129.9 | ) | — | |||
Marketable securities: | ||||||
Purchases | (1.1 | ) | (13.5 | ) | ||
Sales | 0.4 | 0.5 | ||||
Cash proceeds from sale of property and equipment | 1.6 | 1.1 | ||||
Net cash used by investing activities | (164.2 | ) | (48.6 | ) | ||
Cash flows from financing activities: | ||||||
Borrowings (repayments) of debt: | ||||||
Short-term borrowings | (5.5 | ) | 16.1 | |||
Cash supply chain customer debt | — | 0.9 | ||||
Long-term revolving credit facilities: | ||||||
Borrowings | 310.2 | — | ||||
Repayments | (502.9 | ) | — | |||
Other long-term debt: | ||||||
Borrowings | 333.2 | 1.6 | ||||
Repayments | (8.0 | ) | (13.3 | ) | ||
Payment of acquisition-related obligation | (1.5 | ) | (0.1 | ) | ||
Debt financing costs | (3.9 | ) | — | |||
Dividends to: | ||||||
Shareholders of Brink’s | (7.4 | ) | (7.6 | ) | ||
Noncontrolling interests in subsidiaries | — | (0.7 | ) | |||
Tax withholdings associated with share-based compensation | (7.3 | ) | (11.2 | ) | ||
Other | (0.3 | ) | 0.5 | |||
Net cash provided (used) by financing activities | 106.6 | (13.8 | ) | |||
Effect of exchange rate changes on cash | (3.6 | ) | 0.3 | |||
Cash, cash equivalents and restricted cash: | ||||||
Increase (decrease) | (99.2 | ) | (5.3 | ) | ||
Balance at beginning of period | 479.5 | 726.9 | ||||
Balance at end of period | $ | 380.3 | 721.6 |
• | North America |
• | South America |
• | Rest of World |
(In millions) | Core Services | High-Value Services | Other Security Services | Total | ||||||||
Three months ended March 31, 2019 | ||||||||||||
Reportable Segments: | ||||||||||||
North America | $ | 277.2 | 157.3 | — | 434.5 | |||||||
South America | 119.2 | 108.1 | 3.0 | 230.3 | ||||||||
Rest of World | 88.0 | 119.3 | 32.9 | 240.2 | ||||||||
Total | $ | 484.4 | 384.7 | 35.9 | 905.0 | |||||||
Three months ended March 31, 2018 | ||||||||||||
Reportable Segments: | ||||||||||||
North America | $ | 190.0 | 130.1 | — | 320.1 | |||||||
South America | 125.4 | 126.5 | 2.9 | 254.8 | ||||||||
Rest of World | 93.6 | 130.4 | 54.4 | 278.4 | ||||||||
Total reportable segments | 409.0 | 387.0 | 57.3 | 853.3 | ||||||||
Not Allocated to Segments: | ||||||||||||
Venezuela | 10.7 | 15.1 | — | 25.8 | ||||||||
Total | $ | 419.7 | 402.1 | 57.3 | 879.1 |
(In millions) | Receivables | Contract Asset | Contract Liability | ||||||
Opening (January 1, 2019) | $ | 599.5 | 1.8 | 2.5 | |||||
Closing (March 31, 2019) | 641.0 | 1.2 | 5.4 | ||||||
Increase (decrease) | $ | 41.5 | (0.6 | ) | 2.9 |
• | 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 are excluded from segment results. |
• | 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. Beginning in the third quarter of 2018, we began to consolidate Brink's Argentina using our accounting policy for subsidiaries operating in highly inflationary economies. We have excluded from our segment results the impact of highly inflationary accounting in Argentina, including currency remeasurement losses. 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. |
Revenues | Operating Profit | ||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | |||||||||
Reportable Segments: | |||||||||||||
North America | $ | 434.5 | 320.1 | $ | 44.0 | 20.6 | |||||||
South America | 230.3 | 254.8 | 43.0 | 55.6 | |||||||||
Rest of World | 240.2 | 278.4 | 23.8 | 25.6 | |||||||||
Total reportable segments | 905.0 | 853.3 | 110.8 | 101.8 | |||||||||
Reconciling Items: | |||||||||||||
Corporate expenses: | |||||||||||||
General, administrative and other expenses | — | — | (27.1 | ) | (31.1 | ) | |||||||
Foreign currency transaction gains (losses) | — | — | 0.9 | (0.5 | ) | ||||||||
Reconciliation of segment policies to GAAP | — | — | 0.2 | 1.3 | |||||||||
Other items not allocated to segments: | |||||||||||||
Venezuela operations | — | 25.8 | — | 3.5 | |||||||||
Reorganization and Restructuring | — | — | (3.5 | ) | (3.7 | ) | |||||||
Acquisitions and dispositions | — | — | (17.2 | ) | (6.5 | ) | |||||||
Argentina highly inflationary impact | — | — | (4.3 | ) | — | ||||||||
Reporting compliance(a) | — | — | (1.4 | ) | — | ||||||||
Total | $ | 905.0 | 879.1 | $ | 58.4 | 64.8 |
(a) | Costs related to accounting standard implementation and material weakness mitigation. Additional information provided at page 37. |
U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Three months ended March 31, | ||||||||||||||||||
Service cost | $ | — | — | 2.5 | 3.0 | 2.5 | 3.0 | |||||||||||
Interest cost on projected benefit obligation | 8.5 | 8.0 | 2.6 | 4.0 | 11.1 | 12.0 | ||||||||||||
Return on assets – expected | (12.7 | ) | (13.4 | ) | (2.6 | ) | (2.9 | ) | (15.3 | ) | (16.3 | ) | ||||||
Amortization of losses | 5.0 | 7.1 | 1.0 | 1.3 | 6.0 | 8.4 | ||||||||||||
Amortization of prior service cost | — | — | — | 0.2 | — | 0.2 | ||||||||||||
Settlement loss | — | — | 0.3 | 0.5 | 0.3 | 0.5 | ||||||||||||
Net periodic pension cost | $ | 0.8 | 1.7 | 3.8 | 6.1 | 4.6 | 7.8 |
UMWA Plans | Black Lung and Other Plans | Total | ||||||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Three months ended March 31, | ||||||||||||||||||
Interest cost on accumulated postretirement benefit obligations | $ | 5.0 | 4.5 | 0.9 | 0.7 | 5.9 | 5.2 | |||||||||||
Return on assets – expected | (3.3 | ) | (4.2 | ) | — | — | (3.3 | ) | (4.2 | ) | ||||||||
Amortization of losses | 5.1 | 5.5 | 1.1 | 1.2 | 6.2 | 6.7 | ||||||||||||
Amortization of prior service (credit) cost | (1.1 | ) | (1.1 | ) | (0.1 | ) | 0.3 | (1.2 | ) | (0.8 | ) | |||||||
Net periodic postretirement cost | $ | 5.7 | 4.7 | 1.9 | 2.2 | 7.6 | 6.9 |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
Continuing operations | ||||||
Provision for income taxes (in millions) | $ | 9.7 | 11.4 | |||
Effective tax rate | 40.1 | % | 31.1 | % |
(In millions) | Estimated Fair Value at Acquisition Date | ||
Fair value of purchase consideration | |||
Cash paid through March 31, 2019 | $ | 133.1 | |
Indemnification asset | (1.9 | ) | |
Fair value of purchase consideration | $ | 131.2 | |
Fair value of net assets acquired(a) | |||
Cash | $ | 1.4 | |
Accounts receivable | 8.2 | ||
Other current assets | 0.4 | ||
Property and equipment, net | 3.7 | ||
Intangible assets(b) | 47.9 | ||
Goodwill(c) | 80.4 | ||
Other noncurrent assets | 5.1 | ||
Current liabilities | (9.6 | ) | |
Noncurrent liabilities | (6.3 | ) | |
Fair value of net assets acquired | $ | 131.2 |
(a) | Final allocation will be determined once the valuation is complete. |
(b) | Intangible assets are composed of customer relationships ($46 million fair value and 11 year amortization period), trade name ($1 million fair value and 1 year amortization period), and non-compete agreement ($1 million fair value and 5 year amortization period). |
(c) | Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating Rodoban’s operations with our existing Brink’s Brazil operations. All of the goodwill has been assigned to the Brazil reporting unit and is expected to be deductible for tax purposes. |
(In millions) | Estimated Fair Value at Acquisition Date | ||
Fair value of purchase consideration | |||
Cash paid through March 31, 2019 | $ | 546.8 | |
Fair value of purchase consideration | $ | 546.8 | |
Fair value of net assets acquired(a) | |||
Cash | $ | 25.8 | |
Accounts receivable | 31.9 | ||
Other current assets | 11.7 | ||
Property and equipment, net | 57.0 | ||
Intangible assets(b) | 162.0 | ||
Goodwill(c) | 307.1 | ||
Other noncurrent assets | 21.1 | ||
Current liabilities | (29.7 | ) | |
Noncurrent liabilities | (40.1 | ) | |
Fair value of net assets acquired | $ | 546.8 |
(a) | Final allocation will be determined once the valuation is complete. |
(b) | Intangible assets are composed of customer relationships ($148 million fair value and 15 year amortization period) and rights related to the trade name ($14 million fair value and 8 year amortization period). |
(c) | Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating Dunbar’s operations with our existing Brink’s U.S. operations. All of the goodwill has been assigned to the U.S. reporting unit and is expected to be deductible for tax purposes. |
(In millions) | Revenue | Net income (loss) attributable to Brink's | ||||
Actual results included in Brink's consolidated results for businesses acquired in 2018 and 2019 from the date of acquisition | ||||||
Three months ended March 31, 2019 | ||||||
Rodoban | $ | 18.6 | 0.6 | |||
Dunbar | 93.6 | 2.9 | ||||
Total | $ | 112.2 | 3.5 | |||
Three months ended March 31, 2018 | ||||||
Rodoban | $ | — | — | |||
Dunbar | — | — | ||||
Total | $ | — | — |
(In millions) | Revenue | Net income (loss) attributable to Brink's | ||||
Pro forma results of Brink's for the three months ended March 31 | ||||||
2019 | ||||||
Brink's as reported | $ | 905.0 | 13.7 | |||
Rodoban(a) | 0.6 | — | ||||
Dunbar(a) | — | — | ||||
Total | $ | 905.6 | 13.7 | |||
2018 | ||||||
Brink's as reported | $ | 879.1 | 22.3 | |||
Rodoban(a) | 20.6 | (0.7 | ) | |||
Dunbar(a) | 99.7 | 2.2 | ||||
Total | $ | 999.4 | 23.8 |
(a) | Represents amounts prior to acquisition by Brink's. |
Amounts Arising During the Current Period | Amounts Reclassified to Net Income (Loss) | ||||||||||||||
(In millions) | Pretax | Income Tax | Pretax | Income Tax | Total Other Comprehensive Income (Loss) | ||||||||||
Three months ended March 31, 2019 | |||||||||||||||
Amounts attributable to Brink's: | |||||||||||||||
Benefit plan adjustments | $ | (1.3 | ) | 0.2 | 11.3 | (2.7 | ) | 7.5 | |||||||
Foreign currency translation adjustments | 0.3 | — | — | — | 0.3 | ||||||||||
Gains (losses) on cash flow hedges | (5.3 | ) | 1.1 | (2.6 | ) | 0.9 | (5.9 | ) | |||||||
(6.3 | ) | 1.3 | 8.7 | (1.8 | ) | 1.9 | |||||||||
Amounts attributable to noncontrolling interests: | |||||||||||||||
Foreign currency translation adjustments | 0.3 | — | — | — | 0.3 | ||||||||||
0.3 | — | — | — | 0.3 | |||||||||||
Total | |||||||||||||||
Benefit plan adjustments(a) | (1.3 | ) | 0.2 | 11.3 | (2.7 | ) | 7.5 | ||||||||
Foreign currency translation adjustments | 0.6 | — | — | — | 0.6 | ||||||||||
Gains (losses) on cash flow hedges(b) | (5.3 | ) | 1.1 | (2.6 | ) | 0.9 | (5.9 | ) | |||||||
$ | (6.0 | ) | 1.3 | 8.7 | (1.8 | ) | 2.2 | ||||||||
Three months ended March 31, 2018 | |||||||||||||||
Amounts attributable to Brink's: | |||||||||||||||
Benefit plan adjustments | $ | (1.0 | ) | 0.3 | 14.8 | (3.4 | ) | 10.7 | |||||||
Foreign currency translation adjustments | 0.1 | — | — | — | 0.1 | ||||||||||
Gains (losses) on cash flow hedges | 0.4 | (0.1 | ) | — | — | 0.3 | |||||||||
(0.5 | ) | 0.2 | 14.8 | (3.4 | ) | 11.1 | |||||||||
Amounts attributable to noncontrolling interests: | |||||||||||||||
Benefit plan adjustments | — | — | 0.2 | — | 0.2 | ||||||||||
Foreign currency translation adjustments | 0.9 | — | — | — | 0.9 | ||||||||||
0.9 | — | 0.2 | — | 1.1 | |||||||||||
Total | |||||||||||||||
Benefit plan adjustments(a) | (1.0 | ) | 0.3 | 15.0 | (3.4 | ) | 10.9 | ||||||||
Foreign currency translation adjustments | 1.0 | — | — | — | 1.0 | ||||||||||
Gains (losses) on cash flow hedges(b) | 0.4 | (0.1 | ) | — | — | 0.3 | |||||||||
$ | 0.4 | 0.2 | 15.0 | (3.4 | ) | 12.2 |
(a) | The amortization of actuarial losses and prior service cost is part of total net periodic retirement benefit cost when reclassified to net income. Net periodic retirement benefit cost also includes service cost, interest cost, expected return on assets, and settlement losses. Total service cost is allocated between cost of revenues and selling, general and administrative expenses on a plan-by-plan basis and the remaining net periodic retirement benefit cost items are allocated to interest and other nonoperating income (expense): |
Three Months Ended March 31, | ||||||
(In millions) | 2019 | 2018 | ||||
Total net periodic retirement benefit cost included in: | ||||||
Cost of revenues | $ | 1.9 | 2.4 | |||
Selling, general and administrative expenses | 0.6 | 0.6 | ||||
Interest and other nonoperating income (expense) | 9.7 | 11.7 |
(b) | Pretax gains and losses on cash flow hedges are classified in the condensed consolidated statements of operations as: |
• | other operating income (expense) ($3.8 million gain in the three months ended March 31, 2019 and no gains or losses in the three months ended March 31, 2018) |
• | interest expense ($1.2 million of expense in the three months ended March 31, 2019). |
(In millions) | Benefit Plan Adjustments | Foreign Currency Translation Adjustments | Gains (Losses) on Cash Flow Hedges | Total | ||||||||
Balance as of December 31, 2018 | $ | (572.1 | ) | (382.0 | ) | 0.8 | (953.3 | ) | ||||
Other comprehensive income (loss) before reclassifications | (1.1 | ) | 0.3 | (4.2 | ) | (5.0 | ) | |||||
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 8.6 | — | (1.7 | ) | 6.9 | |||||||
Other comprehensive income (loss) attributable to Brink's | 7.5 | 0.3 | (5.9 | ) | 1.9 | |||||||
Cumulative effect of change in accounting principle(a) | (28.8 | ) | — | — | (28.8 | ) | ||||||
Balance as of March 31, 2019 | $ | (593.4 | ) | (381.7 | ) | (5.1 | ) | (980.2 | ) |
(a) | We adopted ASU 2018-02 (see Note 1) effective January 1, 2019 and recognized a cumulative-effect adjustment to retained earnings. |
(In millions) | March 31, 2019 | December 31, 2018 | ||||
Senior unsecured notes | ||||||
Carrying value | $ | 600.0 | 600.0 | |||
Fair value | 574.7 | 519.9 |
March 31, | December 31, | |||||
(In millions) | 2019 | 2018 | ||||
Debt: | ||||||
Short-term borrowings | ||||||
Restricted cash borrowings(a) | $ | 10.3 | 10.5 | |||
Other | 13.1 | 18.4 | ||||
Total short-term borrowings | $ | 23.4 | 28.9 | |||
Long-term debt | ||||||
Bank credit facilities: | ||||||
Term loan A(b) | $ | 796.5 | 466.9 | |||
Senior unsecured notes(c) | 592.2 | 592.0 | ||||
Revolving Credit Facility | 147.3 | 340.0 | ||||
Other | 6.7 | 5.7 | ||||
Financing leases | 123.3 | 120.5 | ||||
Total long-term debt | $ | 1,666.0 | 1,525.1 | |||
Total debt | $ | 1,689.4 | 1,554.0 | |||
Included in: | ||||||
Current liabilities | $ | 92.9 | 82.4 | |||
Noncurrent liabilities | 1,596.5 | 1,471.6 | ||||
Total debt | $ | 1,689.4 | 1,554.0 |
(a) | These amounts are for short-term borrowings related to cash borrowed under lending arrangements used in the process of managing customer cash supply chains, which is currently classified as restricted cash and not available for general corporate purposes. See Note 12 for more details. |
(b) | Amounts outstanding are net of unamortized debt costs of $3.5 million as of March 31, 2019 and $1.8 million as of December 31, 2018. |
(c) | Amounts outstanding are net of unamortized debt costs of $7.8 million as of March 31, 2019 and $8.0 million as of December 31, 2018. |
(In millions) | Balance sheet classification | March 31, 2019 | ||
Assets: | ||||
Operating lease assets | Right-of-use assets, net | $ | 292.2 | |
Finance lease assets | Property and equipment, net | 130.9 | ||
Total leased assets | $ | 423.1 | ||
Liabilities: | ||||
Current: | ||||
Operating | Accrued liabilities | $ | 65.1 | |
Financing | Current maturities of long-term debt | 25.6 | ||
Noncurrent: | ||||
Operating | Lease liabilities | 237.6 | ||
Financing | Long-term debt | 97.7 | ||
Total lease liabilities | $ | 426.0 |
(In millions) | 2019 | ||
Three Months Ended March 31, | |||
Operating lease cost(a) | $ | 24.8 | |
Short-term lease cost | 3.5 | ||
Financial lease cost: | |||
Amortization of right-of-use assets | 7.7 | ||
Interest on lease liabilities | 1.7 | ||
Total lease cost | $ | 37.7 |
(a) | Includes variable lease costs, which are immaterial. |
(In millions, except for lease term and discount rate) | 2019 | ||
Three Months Ended March 31, | |||
Supplemental Cash Flows Information | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | 22.4 | |
Operating cash flows from finance leases | 1.7 | ||
Financing cash flows from finance leases | 6.9 | ||
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 27.1 | ||
Finance leases | 12.1 | ||
Weighted Average Remaining Lease Term | |||
Operating leases | 7.5 years | ||
Finance leases | 5.2 years | ||
Weighted Average Discount Rate | |||
Operating leases | 6.8 | % | |
Finance leases | 5.7 | % |
(In millions) | Facilities | Vehicles | Other | Total | ||||||||
2019 | $ | 51.7 | 9.7 | 21.6 | 83.0 | |||||||
2020 | 46.2 | 5.5 | 15.5 | 67.2 | ||||||||
2021 | 39.5 | 2.3 | 9.5 | 51.3 | ||||||||
2022 | 33.8 | 0.6 | 5.3 | 39.7 | ||||||||
2023 | 29.4 | 0.1 | 2.3 | 31.8 | ||||||||
Later years | 130.3 | — | — | 130.3 | ||||||||
$ | 330.9 | 18.2 | 54.2 | 403.3 |
(In millions) | |||
2019 | $ | 25.1 | |
2020 | 23.5 | ||
2021 | 21.7 | ||
2022 | 19.7 | ||
2023 | 16.2 | ||
Later years | 14.3 | ||
Total | $ | 120.5 |
Compensation Expense | ||||||
Three Months Ended March 31, | ||||||
(in millions) | 2019 | 2018 | ||||
Performance Share Units | $ | 5.8 | 3.9 | |||
Market Share Units | — | 0.1 | ||||
Restricted Stock Units | 2.0 | 1.8 | ||||
Deferred Stock Units and fees paid in stock | 0.3 | 0.2 | ||||
Stock Options | 1.3 | 0.8 | ||||
Share-based payment expense | 9.4 | 6.8 | ||||
Income tax benefit | (2.2 | ) | (1.6 | ) | ||
Share-based payment expense, net of tax | $ | 7.2 | 5.2 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Outstanding balance as of December 31, 2018 | 1,287.0 | $ | 10.88 | |||
Granted | — | — | ||||
Forfeited | — | — | ||||
Exercised | — | — | ||||
Outstanding balance as of March 31, 2019 | 1,287.0 | $ | 10.88 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Outstanding balance as of December 31, 2018 | 2.7 | $ | 21.09 | |||
Granted | 129.9 | 21.60 | ||||
Forfeited | — | — | ||||
Exercised | — | — | ||||
Outstanding balance as of March 31, 2019 | 132.6 | $ | 21.59 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Nonvested balance as of December 31, 2018 | 235.8 | $ | 52.63 | |||
Granted | 80.4 | 77.99 | ||||
Forfeited | (2.9 | ) | 64.37 | |||
Vested | (108.0 | ) | 45.24 | |||
Nonvested balance as of March 31, 2019 | 205.3 | $ | 66.28 |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Nonvested balance as of December 31, 2018 | 697.3 | $ | 47.74 | |||
Granted | 191.0 | 81.43 | ||||
Forfeited | (4.0 | ) | 63.18 | |||
Vested(a)(b) | (187.0 | ) | 29.76 | |||
Nonvested balance as of March 31, 2019 | 697.3 | $ | 61.76 |
(a) | The vested PSUs presented are based on the target amount of the award. In accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the performance period ended December 31, 2018 were 225.9. |
(b) | Certain PSUs were modified and distributed in the first quarter of 2019 and the resulting impact was not material. |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Nonvested balance as of December 31, 2018 | 12.5 | $ | 74.43 | |||
Granted | — | — | ||||
Forfeited | — | — | ||||
Vested | (0.7 | ) | 74.81 | |||
Nonvested balance as of March 31, 2019 | 11.8 | $ | 74.41 |
Three Months Ended March 31, | |||||
(In millions) | 2019 | 2018 | |||
Weighted-average shares: | |||||
Basic(a) | 50.0 | 50.9 | |||
Effect of dilutive stock awards and options | 0.9 | 1.2 | |||
Diluted | 50.9 | 52.1 | |||
Antidilutive stock awards and options excluded from denominator | 0.1 | — |
(a) | We have deferred compensation plans for directors and certain of our employees. Some amounts owed to participants are denominated in common stock units. Each unit represents one share of common stock. The number of shares used to calculate basic earnings per share includes the weighted-average common stock units credited to employees and directors under the deferred compensation plans. Additionally, nonvested units are also included in the computation of basic weighted-average shares when the requisite service period has been completed. Accordingly, included in basic shares are 0.3 million in the three months ended March 31, 2019, and 0.3 million in the three months ended March 31, 2018. |
Three Months Ended March 31, | ||||||
(In millions) | 2019 | 2018 | ||||
Cash paid for: | ||||||
Interest | $ | 15.3 | 7.5 | |||
Income taxes, net | 11.4 | 20.5 |
March 31, | December 31, | |||||
(In millions) | 2019 | 2018 | ||||
Cash and cash equivalents | $ | 283.2 | 343.4 | |||
Restricted cash | 97.1 | 136.1 | ||||
Total, cash, cash equivalents, and restricted cash in the condensed consolidated statements of cash flows | $ | 380.3 | 479.5 |
• | 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) |
◦ | Vaulting services |
◦ | Check imaging services |
• | 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. |
• | 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 |
• | North America |
• | South America |
• | Rest of World. |
Three Months Ended March 31, | % | |||||||
(In millions, except for per share amounts) | 2019 | 2018 | Change | |||||
GAAP | ||||||||
Revenues | 905.0 | 879.1 | 3 | |||||
Cost of revenues | 702.7 | 693.6 | 1 | |||||
Selling, general and administrative expenses | 141.7 | 123.1 | 15 | |||||
Operating profit | 58.4 | 64.8 | (10 | ) | ||||
Income (loss) from continuing operations(a) | 13.7 | 22.1 | (38 | ) | ||||
Diluted EPS from continuing operations(a) | 0.27 | 0.42 | (36 | ) | ||||
Non-GAAP(b) | ||||||||
Non-GAAP revenues | 905.0 | 853.3 | 6 | |||||
Non-GAAP operating profit | 84.8 | 71.5 | 19 | |||||
Non-GAAP income from continuing operations(a) | 40.1 | 35.4 | 13 | |||||
Non-GAAP diluted EPS from continuing operations(a) | 0.79 | 0.68 | 16 |
(a) | Amounts reported in this table are attributable to the shareholders of Brink’s and exclude earnings related to noncontrolling interests. |
(b) | Non-GAAP results are reconciled to the applicable GAAP results on pages 41–43. |
• | unfavorable changes in currency exchange rates ($24.0 million) driven by the Argentine peso and Brazilian real, |
• | higher costs related to business acquisitions and dispositions ($11.7 million) included in “Other items not allocated to segments”, primarily from the impact of intangible asset amortization and acquisition-related charges in the first quarter of 2019, and |
• | deconsolidation of Venezuela in the second quarter of 2018 ($4.7 million), |
• | organic increases in North America ($16.1 million) and South America ($5.2 million), |
• | the favorable operating impact of business acquisitions and dispositions ($12.9 million), excluding intangible asset amortization and acquisition-related charges, and |
• | lower corporate expenses ($2.8 million on an organic basis). |
• | organic increases in North America ($16.1 million) and South America ($5.2 million), |
• | the favorable operating impact of business acquisitions and dispositions ($12.9 million), and |
• | lower corporate expenses ($2.8 million on an organic basis), |
• | unfavorable changes in currency exchange rates ($22.2 million) driven by the Argentine peso and Brazilian real. |
Organic | Acquisitions / | % Change | |||||||||||||||||||
(In millions) | 1Q'18 | Change | Dispositions(a) | Currency(b) | 1Q'19 | Total | Organic | ||||||||||||||
Revenues: | |||||||||||||||||||||
North America | $ | 320.1 | 19.1 | 99.8 | (4.5 | ) | 434.5 | 36 | 6 | ||||||||||||
South America | 254.8 | 30.1 | 20.6 | (75.2 | ) | 230.3 | (10 | ) | 12 | ||||||||||||
Rest of World | 278.4 | (0.8 | ) | (20.4 | ) | (17.0 | ) | 240.2 | (14 | ) | — | ||||||||||
Segment revenues(e) | 853.3 | 48.4 | 100.0 | (96.7 | ) | 905.0 | 6 | 6 | |||||||||||||
Other items not allocated to segments(d) | 25.8 | (25.8 | ) | — | — | — | (100 | ) | (100 | ) | |||||||||||
Revenues - GAAP | $ | 879.1 | 22.6 | 100.0 | (96.7 | ) | 905.0 | 3 | 3 | ||||||||||||
Operating profit: | |||||||||||||||||||||
North America | $ | 20.6 | 16.1 | 7.8 | (0.5 | ) | 44.0 | fav | 78 | ||||||||||||
South America | 55.6 | 5.2 | 4.1 | (21.9 | ) | 43.0 | (23 | ) | 9 | ||||||||||||
Rest of World | 25.6 | (1.5 | ) | 1.0 | (1.3 | ) | 23.8 | (7 | ) | (6 | ) | ||||||||||
Segment operating profit | 101.8 | 19.8 | 12.9 | (23.7 | ) | 110.8 | 9 | 19 | |||||||||||||
Corporate(c) | (30.3 | ) | 2.8 | — | 1.5 | (26.0 | ) | (14 | ) | (9 | ) | ||||||||||
Operating profit - non-GAAP | 71.5 | 22.6 | 12.9 | (22.2 | ) | 84.8 | 19 | 32 | |||||||||||||
Other items not allocated to segments(d) | (6.7 | ) | (6.2 | ) | (11.7 | ) | (1.8 | ) | (26.4 | ) | unfav | 93 | |||||||||
Operating profit - GAAP | $ | 64.8 | 16.4 | 1.2 | (24.0 | ) | 58.4 | (10 | ) | 25 |
(a) | Non-GAAP amounts include the impact of prior year comparable period results for acquired and disposed businesses. GAAP results also include the impact of acquisition-related intangible amortization, restructuring and other charges, and disposition-related gains/losses. |
(b) | The amounts in the “Currency” column consist of the effects of Venezuela devaluations prior to deconsolidation, the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. Monthly currency changes represent the accumulation throughout the year of the impact on current period results of changes in foreign currency rates from the prior year period. |
(c) | Corporate expenses are not allocated to segment results. Corporate expenses include salaries and other costs to manage the global business and to perform activities required by public companies. |
(d) | See pages 36–37 for more information. |
(e) | Segment revenues equal our total reported non-GAAP revenues. |
Three Months Ended March 31, | % | ||||||||
(In millions) | 2019 | 2018 | change | ||||||
General, administrative and other expenses | $ | (27.1 | ) | (31.1 | ) | (13 | ) | ||
Foreign currency transaction gains (losses) | 0.9 | (0.5 | ) | fav | |||||
Reconciliation of segment policies to GAAP | 0.2 | 1.3 | (85 | ) | |||||
Corporate expenses | $ | (26.0 | ) | (30.3 | ) | (14 | ) |
Three Months Ended March 31, | % | ||||||||
(In millions) | 2019 | 2018 | change | ||||||
Revenues: | |||||||||
Venezuela operations | $ | — | 25.8 | (100 | ) | ||||
Revenues | $ | — | 25.8 | (100 | ) | ||||
Operating profit: | |||||||||
Venezuela operations | — | 3.5 | (100 | ) | |||||
Reorganization and Restructuring | (3.5 | ) | (3.7 | ) | (5 | ) | |||
Acquisitions and dispositions | (17.2 | ) | (6.5 | ) | unfav | ||||
Argentina highly inflationary impact | (4.3 | ) | — | unfav | |||||
Reporting compliance | (1.4 | ) | — | unfav | |||||
Operating profit | $ | (26.4 | ) | (6.7 | ) | unfav |
• | Continued inability to repatriate cash to redeploy to other operations or dividend to shareholders, |
• | Highly inflationary environment, |
• | Previous fixed exchange rate policy, |
• | Continued currency devaluations, and |
• | Difficulty raising prices and controlling costs. |
Three Months Ended March 31, | % | ||||||||
(In millions) | 2019 | 2018 | change | ||||||
Reportable Segments: | |||||||||
North America | $ | (1.0 | ) | (0.5 | ) | 100 | |||
South America | (0.6 | ) | (0.8 | ) | (25 | ) | |||
Rest of World | (1.4 | ) | (2.4 | ) | (42 | ) | |||
Total reportable segments | (3.0 | ) | (3.7 | ) | (19 | ) | |||
Corporate items | (0.5 | ) | — | unfav | |||||
Total | $ | (3.5 | ) | (3.7 | ) | (5 | ) |
• | Amortization expense for acquisition-related intangible assets was $6.4 million in the first three months of 2019. |
• | We incurred $4.6 million in integration costs related to Dunbar in the first three months of 2019. |
• | Restructuring costs related to our Dunbar and Rodoban acquisitions were $2.5 million in the first three months of 2019. |
• | In the first three months of 2019, we recognized $1.7 million in asset impairment charges and severance costs related to the planned exit from our top-up prepaid mobile phone business in Brazil. |
• | Compensation expense related to the retention of key Dunbar employees was $1.5 million in the first three months of 2019. |
• | Transaction costs related to business acquisitions were $0.4 million in the first three months of 2019. |
• | Amortization expense for acquisition-related intangible assets was $3.8 million in the first three months of 2018. |
• | Severance costs related to our 2017 acquisitions in Argentina, France and Brazil were $2.1 million in the first three months of 2018. |
• | Transaction costs related to business acquisitions were $0.5 million in the first three months of 2018. |
Three Months Ended March 31, | % | ||||||||
(In millions) | 2019 | 2018 | change | ||||||
Foreign currency items: | |||||||||
Transaction gains (losses) | $ | (6.9 | ) | 4.4 | unfav | ||||
Derivative instrument gains (losses) | 3.9 | (2.1 | ) | fav | |||||
Gains on sale of property and other assets | 0.1 | 0.4 | (75 | ) | |||||
Impairment losses | (1.2 | ) | (1.8 | ) | (33 | ) | |||
Share in earnings of equity affiliates | 0.2 | 1.1 | (82 | ) | |||||
Royalty income | 1.2 | 0.5 | fav | ||||||
Other gains (losses) | 0.5 | (0.1 | ) | fav | |||||
Other operating income (expense) | $ | (2.2 | ) | 2.4 | unfav |
Three Months Ended March 31, | % | |||||||
(In millions) | 2019 | 2018 | change | |||||
Interest expense | $ | 23.0 | 15.0 | 53 |
Three Months Ended March 31, | % | ||||||||
(In millions) | 2019 | 2018 | change | ||||||
Interest income | $ | 1.2 | 2.0 | (40 | ) | ||||
Loss on equity securities | (0.1 | ) | — | unfav | |||||
Foreign currency transaction losses(a) | — | (2.9 | ) | (100 | ) | ||||
Retirement benefit cost other than service cost | (9.7 | ) | (11.7 | ) | (17 | ) | |||
Non-income taxes on intercompany billings (b) | (1.0 | ) | (0.3 | ) | unfav | ||||
Venezuela operations (c) | (0.5 | ) | — | unfav | |||||
Other | (1.1 | ) | (0.2 | ) | unfav | ||||
Interest and other nonoperating income (expense) | $ | (11.2 | ) | (13.1 | ) | (15 | ) |
(a) | Prior to the July 1, 2018 highly inflationary designation for accounting purposes, currency transaction losses incurred by Brink's Argentina related to its U.S. dollar-denominated payables to the sellers of Maco Transporatadora and Maco Litoral. |
(b) | Certain of our Latin American subsidiaries incur non-income taxes relate to the billing of intercompany charges. These intercompany charges do not impact Latin American segment results and are eliminated in our consolidation. |
(c) | Charges incurred providing financial support to Brink's Venezuelan subsidiaries after the June 30, 2018 deconsolidation. |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
Continuing operations | ||||||
Provision for income taxes (in millions) | $ | 9.7 | 11.4 | |||
Effective tax rate | 40.1 | % | 31.1 | % |
Three Months Ended March 31, | % | ||||||||
(In millions) | 2019 | 2018 | change | ||||||
Net income attributable to noncontrolling interests | $ | 0.8 | 3.2 | (75 | ) |
YTD '19 | YTD '18 | ||||||||||||||||||
(In millions, except for percentages) | Pre-tax | Tax | Effective tax rate | Pre-tax | Tax | Effective tax rate | |||||||||||||
Effective Income Tax Rate(a) | |||||||||||||||||||
GAAP | $ | 24.2 | 9.7 | 40.1 | % | $ | 36.7 | 11.4 | 31.1 | % | |||||||||
Retirement plans(d) | 8.4 | 1.9 | 8.8 | 1.9 | |||||||||||||||
Venezuela operations(b)(f) | 0.5 | — | (1.6 | ) | (1.5 | ) | |||||||||||||
Reorganization and Restructuring(b) | 3.5 | 1.0 | 3.7 | 1.2 | |||||||||||||||
Acquisitions and dispositions(b) | 18.7 | 1.7 | 9.6 | 3.1 | |||||||||||||||
Tax on accelerated income(e) | — | — | — | 0.5 | |||||||||||||||
Argentina highly inflationary impact(b) | 4.3 | — | — | — | |||||||||||||||
Reporting compliance(b) | 1.4 | — | — | — | |||||||||||||||
Income tax rate adjustment(c) | — | 5.8 | — | 3.0 | |||||||||||||||
Non-GAAP | $ | 61.0 | 20.1 | 33.0 | % | $ | 57.2 | 19.6 | 34.2 | % |
(a) | From continuing operations. |
(b) | See “Other Items Not Allocated To Segments” on pages 36–37 for details. We do not consider these items to be reflective of our core operating performance due to the variability of such items from period-to-period in terms of size, nature and significance. |
(c) | Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 33.0% for 2019 and was 34.2% for 2018. |
(d) | Our U.S. retirement plans are frozen and costs related to these plans are excluded from non-GAAP results. Certain non-U.S. operations also have retirement plans. Settlement charges related to these non-U.S. plans are also excluded from non-GAAP results. |
(e) | The non-GAAP tax rate excludes the 2018 foreign tax benefit that resulted from the transaction that accelerated U.S. tax in 2015. |
(f) | Post-deconsolidation funding of ongoing costs related to our Venezuelan operations was $0.5 million in the first three months of 2019 and was expensed as incurred and reported in interest and other nonoperating income (expense). We do not expect future amounts to be material. |
Three Months Ended March 31, | |||||
(In millions, except for percentages and per share amounts) | 2019 | 2018 | |||
Revenues: | |||||
GAAP | 905.0 | 879.1 | |||
Venezuela operations(b) | — | (25.8 | ) | ||
Non-GAAP | 905.0 | 853.3 | |||
Operating profit: | |||||
GAAP | 58.4 | 64.8 | |||
Venezuela operations(b) | — | (3.5 | ) | ||
Reorganization and Restructuring(b) | 3.5 | 3.7 | |||
Acquisitions and dispositions(b) | 17.2 | 6.5 | |||
Argentina highly inflationary impact(b) | 4.3 | — | |||
Reporting compliance(b) | 1.4 | — | |||
Non-GAAP | 84.8 | 71.5 | |||
Operating margin: | |||||
GAAP margin | 6.5 | % | 7.4 | % | |
Non-GAAP margin | 9.4 | % | 8.4 | % | |
Interest expense: | |||||
GAAP | (23.0 | ) | (15.0 | ) | |
Acquisitions and dispositions(b) | 1.5 | 0.2 | |||
Non-GAAP | (21.5 | ) | (14.8 | ) | |
Interest and other nonoperating income (expense): | |||||
GAAP | (11.2 | ) | (13.1 | ) | |
Retirement plans(d) | 8.4 | 8.8 | |||
Venezuela operations(b)(f) | 0.5 | 1.9 | |||
Acquisitions and dispositions(b) | — | 2.9 | |||
Non-GAAP | (2.3 | ) | 0.5 | ||
Provision for income taxes: | |||||
GAAP | 9.7 | 11.4 | |||
Retirement plans(d) | 1.9 | 1.9 | |||
Venezuela operations(b) | — | (1.5 | ) | ||
Reorganization and Restructuring(b) | 1.0 | 1.2 | |||
Acquisitions and dispositions(b) | 1.7 | 3.1 | |||
Tax on accelerated income(e) | — | 0.5 | |||
Income tax rate adjustment(c) | 5.8 | 3.0 | |||
Non-GAAP | 20.1 | 19.6 |
Three Months Ended March 31, | |||||
(In millions, except for percentages and per share amounts) | 2019 | 2018 | |||
Net income (loss) attributable to noncontrolling interests: | |||||
GAAP | 0.8 | 3.2 | |||
Venezuela operations(b) | — | (0.6 | ) | ||
Income tax rate adjustment(c) | — | (0.4 | ) | ||
Non-GAAP | 0.8 | 2.2 | |||
Income (loss) from continuing operations attributable to Brink's: | |||||
GAAP | 13.7 | 22.1 | |||
Retirement plans(d) | 6.5 | 6.9 | |||
Venezuela operations(b)(f) | 0.5 | 0.5 | |||
Reorganization and Restructuring(b) | 2.5 | 2.5 | |||
Acquisitions and dispositions(b) | 17.0 | 6.5 | |||
Tax on accelerated income(e) | — | (0.5 | ) | ||
Argentina highly inflationary impact(b) | 4.3 | — | |||
Reporting compliance(b) | 1.4 | — | |||
Income tax rate adjustment(c) | (5.8 | ) | (2.6 | ) | |
Non-GAAP | 40.1 | 35.4 | |||
Diluted EPS: | |||||
GAAP | 0.27 | 0.42 | |||
Retirement plans(d) | 0.13 | 0.13 | |||
Venezuela operations(b)(f) | 0.01 | 0.01 | |||
Reorganization and Restructuring(b) | 0.05 | 0.05 | |||
Acquisitions and dispositions(b) | 0.33 | 0.12 | |||
Tax on accelerated income(e) | — | (0.01 | ) | ||
Argentina highly inflationary impact(b) | 0.09 | — | |||
Reporting compliance(b) | 0.03 | — | |||
Income tax rate adjustment(c) | (0.11 | ) | (0.05 | ) | |
Non-GAAP | 0.79 | 0.68 |
Three Months Ended March 31, | $ | ||||||||
(In millions) | 2019 | 2018 | change | ||||||
Cash flows from operating activities | |||||||||
Operating activities - GAAP | $ | (38.0 | ) | 56.8 | (94.8 | ) | |||
Venezuela operations | — | 0.4 | (0.4 | ) | |||||
(Increase) decrease in restricted cash held for customers | 36.8 | (44.0 | ) | 80.8 | |||||
(Increase) decrease in certain customer obligations(a) | (11.3 | ) | 0.5 | (11.8 | ) | ||||
Operating activities - non-GAAP | $ | (12.5 | ) | 13.7 | (26.2 | ) |
(a) | To adjust for the change in the balance of customer obligations related to cash received and processed in certain of our secure cash management services operations. The title to this cash transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the management of our liquidity and capital resources. |
Three Months Ended March 31, | $ | ||||||||
(In millions) | 2019 | 2018 | change | ||||||
Cash flows from investing activities | |||||||||
Capital expenditures | $ | (35.2 | ) | (36.7 | ) | 1.5 | |||
Acquisitions, net of cash acquired | (129.9 | ) | — | (129.9 | ) | ||||
Marketable securities: | |||||||||
Purchases | (1.1 | ) | (13.5 | ) | 12.4 | ||||
Sales | 0.4 | 0.5 | (0.1 | ) | |||||
Proceeds from sale of property and equipment | 1.6 | 1.1 | 0.5 | ||||||
Investing activities | $ | (164.2 | ) | (48.6 | ) | (115.6 | ) |
Three Months Ended March 31, | $ | Full Year | ||||||||||
(In millions) | 2019 | 2018 | change | 2018 | ||||||||
Property and equipment acquired during the period | ||||||||||||
Capital expenditures:(a) | ||||||||||||
North America | $ | 16.4 | 12.0 | 4.4 | 59.1 | |||||||
South America | 9.7 | 8.1 | 1.6 | 43.3 | ||||||||
Rest of World | 6.8 | 6.7 | 0.1 | 37.9 | ||||||||
Corporate | 2.3 | 9.9 | (7.6 | ) | 14.8 | |||||||
Capital expenditures - GAAP and non-GAAP | 35.2 | 36.7 | (1.5 | ) | 155.1 | |||||||
Financing leases:(b) | ||||||||||||
North America | $ | 9.6 | 9.5 | 0.1 | 42.3 | |||||||
South America | 0.3 | — | 0.3 | 9.6 | ||||||||
Rest of World | 2.2 | — | 2.2 | — | ||||||||
Financing leases - GAAP and non-GAAP | $ | 12.1 | 9.5 | 2.6 | 51.9 | |||||||
Total: | ||||||||||||
North America | $ | 26.0 | 21.5 | 4.5 | 101.4 | |||||||
South America | 10.0 | 8.1 | 1.9 | 52.9 | ||||||||
Rest of World | 9.0 | 6.7 | 2.3 | 37.9 | ||||||||
Corporate | 2.3 | 9.9 | (7.6 | ) | 14.8 | |||||||
Total property and equipment acquired | 47.3 | 46.2 | 1.1 | 207.0 | ||||||||
Depreciation and amortization(a) | ||||||||||||
North America | $ | 22.1 | 15.3 | 6.8 | 72.1 | |||||||
South America | 7.1 | 6.9 | 0.2 | 26.3 | ||||||||
Rest of World | 9.2 | 8.1 | 1.1 | 31.3 | ||||||||
Corporate | 2.8 | 3.0 | (0.2 | ) | 11.9 | |||||||
Depreciation and amortization - non-GAAP | 41.2 | 33.3 | 7.9 | 141.6 | ||||||||
Venezuela | — | 0.5 | (0.5 | ) | 1.1 | |||||||
Argentina highly inflationary impact | 0.2 | — | 0.2 | — | ||||||||
Reorganization and Restructuring | 0.1 | 1.2 | (1.1 | ) | 1.9 | |||||||
Amortization of intangible assets | 6.4 | 3.8 | 2.6 | 17.7 | ||||||||
Depreciation and amortization - GAAP | $ | 47.9 | 38.8 | 9.1 | 162.3 |
(a) | Capital expenditures as well as depreciation and amortization related to Venezuela have been excluded from South America. In addition, incremental depreciation related to highly inflationary accounting in Argentina, accelerated depreciation related to Reorganization and Restructuring activities and amortization of acquisition-related intangible assets have also been excluded from non-GAAP amounts. |
(b) | Represents the amount of property and equipment acquired using financing leases. Because the assets are acquired without using cash, the acquisitions are not reflected in the condensed consolidated cash flow statement. Amounts are provided here to assist in the comparison of assets acquired in the current year versus prior years. |
Three Months Ended March 31, | $ | ||||||||
(In millions) | 2019 | 2018 | change | ||||||
Cash flows from financing activities | |||||||||
Borrowings and repayments: | |||||||||
Short-term borrowings | $ | (5.5 | ) | 16.1 | (21.6 | ) | |||
Cash supply chain customer debt | — | 0.9 | (0.9 | ) | |||||
Long-term revolving credit facilities, net | (192.7 | ) | — | (192.7 | ) | ||||
Other long-term debt, net | 325.2 | (11.7 | ) | 336.9 | |||||
Borrowings (repayments) | 127.0 | 5.3 | 121.7 | ||||||
Dividends to: | |||||||||
Shareholders of Brink’s | (7.4 | ) | (7.6 | ) | 0.2 | ||||
Noncontrolling interests in subsidiaries | — | (0.7 | ) | 0.7 | |||||
Tax withholdings associated with share-based compensation | (7.3 | ) | (11.2 | ) | 3.9 | ||||
Other | (5.7 | ) | 0.4 | (6.1 | ) | ||||
Financing activities | $ | 106.6 | (13.8 | ) | 120.4 |
March 31, | December 31, | |||||
(In millions) | 2019 | 2018 | ||||
Debt: | ||||||
Short-term borrowings | $ | 23.4 | 28.9 | |||
Long-term debt | 1,666.0 | 1,525.1 | ||||
Total Debt | 1,689.4 | 1,554.0 | ||||
Restricted cash borrowings(a) | (10.3 | ) | (10.5 | ) | ||
Total Debt without restricted cash borrowings | 1,679.1 | 1,543.5 | ||||
Less: | ||||||
Cash and cash equivalents | 283.2 | 343.4 | ||||
Amounts held by Cash Management Services operations(b) | (25.5 | ) | (14.1 | ) | ||
Cash and cash equivalents available for general corporate purposes | 257.7 | 329.3 | ||||
Net Debt | $ | 1,421.4 | 1,214.2 |
(a) | Restricted cash borrowings are related to cash borrowed under lending arrangements used in the process of managing customer cash supply chains, which is currently classified as restricted cash and not available for general corporate purposes. |
(b) | Title to cash received and processed in certain of our secure Cash Management Services operations transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the management of our liquidity and capital resources and in our computation of Net Debt. |
Funded Status of U.S. Retirement Plans | |||||||||||||||||||||
Actual | Actual | Projected | |||||||||||||||||||
(In millions) | 2018 | 1Q 2019 | 2-4Q 2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||||||
Primary U.S. pension plan | |||||||||||||||||||||
Beginning funded status | $ | (102.3 | ) | (106.8 | ) | (102.6 | ) | (94.3 | ) | (81.4 | ) | (68.0 | ) | (36.4 | ) | ||||||
Net periodic pension credit(a) | 22.0 | 4.2 | 12.7 | 15.7 | 15.4 | 15.7 | 16.6 | ||||||||||||||
Payment from Brink’s | — | — | — | — | — | 17.3 | 28.3 | ||||||||||||||
Benefit plan experience loss | (26.5 | ) | — | (4.4 | ) | (2.8 | ) | (2.0 | ) | (1.4 | ) | (0.1 | ) | ||||||||
Ending funded status | $ | (106.8 | ) | (102.6 | ) | (94.3 | ) | (81.4 | ) | (68.0 | ) | (36.4 | ) | 8.4 | |||||||
UMWA plans | |||||||||||||||||||||
Beginning funded status | $ | (294.3 | ) | (297.4 | ) | (298.3 | ) | (304.1 | ) | (311.8 | ) | (320.7 | ) | (330.8 | ) | ||||||
Net periodic postretirement cost(a) | (0.4 | ) | (1.7 | ) | (5.0 | ) | (7.7 | ) | (8.9 | ) | (10.1 | ) | (11.5 | ) | |||||||
Benefit plan experience loss | (1.4 | ) | — | — | — | — | — | — | |||||||||||||
Other | (1.3 | ) | 0.8 | (0.8 | ) | — | — | — | — | ||||||||||||
Ending funded status | $ | (297.4 | ) | (298.3 | ) | (304.1 | ) | (311.8 | ) | (320.7 | ) | (330.8 | ) | (342.3 | ) | ||||||
Black lung plans | |||||||||||||||||||||
Beginning funded status | $ | (67.0 | ) | (67.9 | ) | (66.4 | ) | (63.0 | ) | (58.3 | ) | (54.0 | ) | (50.0 | ) | ||||||
Net periodic postretirement cost(a) | (2.5 | ) | (0.7 | ) | (2.0 | ) | (2.4 | ) | (2.3 | ) | (2.2 | ) | (1.9 | ) | |||||||
Payment from Brink’s | 8.1 | 2.2 | 5.4 | 7.1 | 6.6 | 6.2 | 5.7 | ||||||||||||||
Benefit plan experience loss | (6.5 | ) | — | — | — | — | — | — | |||||||||||||
Ending funded status | $ | (67.9 | ) | (66.4 | ) | (63.0 | ) | (58.3 | ) | (54.0 | ) | (50.0 | ) | (46.2 | ) |
(a) | Excludes amounts reclassified from accumulated other comprehensive income (loss). |
• | Discount rates and other assumptions in effect at measurement dates (normally December 31) |
• | Investment returns of plan assets |
• | Addition of new participants (historically immaterial due to freezing of pension benefits and exit from coal business) |
• | Mortality rates |
• | Change in laws |
Actual | Actual | Projected | ||||||||||||||||||||||
(In millions) | 2018 | 1Q 2019 | 2-4Q 2019 | FY2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||||||||
Primary U.S. pension plan | $ | 5.5 | 0.7 | 2.0 | 2.7 | 5.5 | 5.2 | 4.3 | 4.0 | |||||||||||||||
UMWA plans | 16.1 | 5.7 | 16.9 | 22.6 | 22.6 | 22.9 | 23.2 | 23.7 | ||||||||||||||||
Black lung plans | 9.8 | 1.8 | 5.2 | 7.0 | 6.6 | 6.2 | 5.7 | 5.3 | ||||||||||||||||
Total | $ | 31.4 | 8.2 | 24.1 | 32.3 | 34.7 | 34.3 | 33.2 | 33.0 |
• | from Brink’s to U.S. retirement plans, and |
• | from the plans to participants. |
Actual | Actual | Projected | ||||||||||||||||||||||
(In millions) | 2018 | 1Q 2019 | 2-4Q 2019 | FY2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||||||||
Payments from Brink’s to U.S. Plans | ||||||||||||||||||||||||
Primary U.S. pension plan | $ | — | — | — | — | — | — | 17.3 | 28.3 | |||||||||||||||
Black lung plans | 8.1 | 2.2 | 5.4 | 7.6 | 7.1 | 6.6 | 6.2 | 5.7 | ||||||||||||||||
Total | $ | 8.1 | 2.2 | 5.4 | 7.6 | 7.1 | 6.6 | 23.5 | 34.0 | |||||||||||||||
Payments from U.S. Plans to participants | ||||||||||||||||||||||||
Primary U.S. pension plan | $ | 48.3 | 12.0 | 39.0 | 51.0 | 51.1 | 51.1 | 51.0 | 51.0 | |||||||||||||||
UMWA plans | 28.6 | 6.5 | 27.0 | 33.5 | 33.6 | 33.6 | 34.2 | 34.0 | ||||||||||||||||
Black lung plans | 8.1 | 2.2 | 5.4 | 7.6 | 7.1 | 6.6 | 6.2 | 5.7 | ||||||||||||||||
Total | $ | 85.0 | 20.7 | 71.4 | 92.1 | 91.8 | 91.3 | 91.4 | 90.7 |
• | our ability to improve profitability and execute further cost and operational improvements and efficiencies in our core businesses; |
• | our ability to improve service levels and quality in our core businesses; |
• | market volatility and commodity price fluctuations; |
• | seasonality, pricing and other competitive industry factors; |
• | investment in information technology and its impact on revenue and profit growth; |
• | our ability to maintain an effective IT infrastructure and safeguard confidential information; |
• | our ability to effectively develop and implement solutions for our customers; |
• | risks associated with operating in foreign countries, including changing political, labor and economic conditions, regulatory issues (including the imposition of international sanctions, including by the U.S. government), currency restrictions and devaluations, restrictions on and cost of repatriating earnings and capital, impact on the Company's financial results as a result of jurisdictions determined to be highly inflationary, and restrictive government actions, including nationalization; |
• | labor issues, including negotiations with organized labor and work stoppages; |
• | the strength of the U.S. dollar relative to foreign currencies and foreign currency exchange rates; |
• | our ability to identify, evaluate and complete acquisitions and other strategic transactions and to successfully integrate acquired companies; |
• | costs related to dispositions and product or market exits; |
• | our ability to obtain appropriate insurance coverage, positions taken by insurers relative to claims and the financial condition of insurers; |
• | safety and security performance and loss experience; |
• | employee, environmental and other liabilities in connection with former coal operations, including black lung claims; |
• | the impact of the Patient Protection and Affordable Care Act on legacy liabilities and ongoing operations; |
• | funding requirements, accounting treatment, and investment performance of our pension plans, the VEBA and other employee benefits; |
• | changes to estimated liabilities and assets in actuarial assumptions; |
• | the nature of hedging relationships and counterparty risk; |
• | access to the capital and credit markets; |
• | our ability to realize deferred tax assets; |
• | the outcome of pending and future claims, litigation, and administrative proceedings; |
• | public perception of our business, reputation and brand; |
• | changes in estimates and assumptions underlying our critical accounting policies; and |
• | the promulgation and adoption of new accounting standards, new government regulations and interpretation of existing standards and regulations. |
Period | (a) Total Number of Shares Purchased(1) | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||||
January 1 through | ||||||||||||||
January 31, 2019 | — | $ | — | — | $ | — | ||||||||
February 1 through | ||||||||||||||
February 28, 2019 | 37,387 | (2) | 37,387 | — | ||||||||||
March 1 through | ||||||||||||||
March 31, 2019 | — | — | — | — |
(1) | On May 8, 2017, the Company’s board of directors authorized the Company to repurchase up to $200 million of common stock from time to time as market conditions warrant and as covenants under existing agreements permit. The program does not require the Company to acquire any specific numbers of shares and may be modified or discontinued at any time. The program will expire on December 31, 2019. |
(2) | In December 2018, the Company entered into an accelerated share repurchase arrangement ("ARS") to purchase $50 million of the Company's common stock. In February 2019, the purchase period for this ASR ended and an additional 37,387 shares were delivered and retired. In total, 737,387 shares were delivered and retired under this ASR at an average repurchase price of $67.81 per share. |
31.1 | |
31.2 | |
32.1 | |
32.2 | |
101 | Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended March 31, 2019, furnished in XBRL (eXtensible Business Reporting Language)). Attached as Exhibit 101 to this report are the following documents formatted in XBRL: (i) the Condensed Consolidated Balance Sheets at March 31, 2019, and December 31, 2018, (ii) the Condensed Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018, (iv) the Condensed Consolidated Statements of Equity for the three months ended March 31, 2019 and 2018, (v) the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018 and (vi) the Notes to the Condensed Consolidated Financial Statements. Users of this data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, and otherwise is not subject to liability under these sections. |
THE BRINK’S COMPANY | |
April 24, 2019 | By: /s/ Ronald J. Domanico |
Ronald J. Domanico | |
(Executive Vice President and | |
Chief Financial Officer) | |
(principal financial officer) |
/s/ Douglas A. Pertz | ||
Douglas A. Pertz | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) |
/s/ Ronald J. Domanico | ||
Ronald J. Domanico | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 22, 2019 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Fiscal Year Focus | 2019 | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | BRINKS CO | |
Entity Central Index Key | 0000078890 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 49,868,974 | |
Trading Symbol | bco | |
Entity Emerging Growth Company | false | |
Entity Smaller Reporting Company | false |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Par value (in dollars per share) | $ 1 | $ 1 |
Shares authorized (in shares) | 100,000,000 | 100,000,000 |
Shares issued (in shares) | 49,900,000 | 49,700,000 |
Shares outstanding (in shares) | 49,900,000 | 49,700,000 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 14.5 | $ 25.5 |
Benefit plan adjustments: | ||
Benefit plan actuarial gains | 11.3 | 14.8 |
Benefit plan prior service costs | (1.3) | (0.8) |
Total benefit plan adjustments | 10.0 | 14.0 |
Foreign currency translation adjustments | 0.6 | 1.0 |
Gains (losses) on cash flow hedges | (7.9) | 0.4 |
Other comprehensive income before tax | 2.7 | 15.4 |
Provision for income taxes | 0.5 | 3.2 |
Other comprehensive income | 2.2 | 12.2 |
Comprehensive income | 16.7 | 37.7 |
Less comprehensive income attributable to noncontrolling interests | 1.1 | 4.3 |
Comprehensive income attributable to Brink's | $ 15.6 | $ 33.4 |
Condensed Consolidated Statement of Equity (Unaudited) - USD ($) shares in Millions, $ in Millions |
Total |
Common Stock |
Capital in Excess of Par Value |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Noncontrolling Interests |
|||||
---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2017 | $ 338.2 | $ 50.5 | $ 628.6 | $ 564.9 | $ (926.6) | $ 20.8 | |||||
Beginning balance, Shares at Dec. 31, 2017 | 50.5 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 25.5 | 22.3 | 3.2 | ||||||||
Other comprehensive income | 12.2 | 11.1 | 1.1 | ||||||||
Dividends to: | |||||||||||
Brink’s common shareholders | (7.6) | (7.6) | |||||||||
Noncontrolling interests | (0.7) | (0.7) | |||||||||
Share-based compensation: | |||||||||||
Compensation expense | 6.8 | 6.8 | |||||||||
Other share-based benefit transactions | (10.1) | $ 0.4 | (10.5) | ||||||||
Other share-based benefit transactions, shares | 0.4 | ||||||||||
Ending balance at Mar. 31, 2018 | 366.5 | $ 50.9 | 624.9 | 582.9 | (916.6) | 24.4 | |||||
Ending balance, Shares at Mar. 31, 2018 | 50.9 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of change in accounting principle | [1] | 2.2 | 3.3 | (1.1) | |||||||
Beginning balance at Dec. 31, 2018 | 166.6 | $ 49.7 | 628.2 | 429.1 | (953.3) | 12.9 | |||||
Beginning balance, Shares at Dec. 31, 2018 | 49.7 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 14.5 | 13.7 | 0.8 | ||||||||
Other comprehensive income | 2.2 | 1.9 | 0.3 | ||||||||
Stock repurchased | 0.0 | $ 0.0 | (0.5) | 0.5 | |||||||
Stock repurchased, Shares | 0.0 | ||||||||||
Dividends to: | |||||||||||
Brink’s common shareholders | (7.4) | (7.4) | |||||||||
Share-based compensation: | |||||||||||
Compensation expense | 9.4 | 9.4 | |||||||||
Other share-based benefit transactions | (6.0) | $ 0.2 | (6.2) | ||||||||
Other share-based benefit transactions, shares | 0.2 | ||||||||||
Ending balance at Mar. 31, 2019 | 179.3 | $ 49.9 | $ 630.9 | 464.7 | (980.2) | $ 14.0 | |||||
Ending balance, Shares at Mar. 31, 2019 | 49.9 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative effect of change in accounting principle | [2] | $ 0.0 | $ 28.8 | $ (28.8) | |||||||
|
Condensed Consolidated Statement of Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Dividends to: | ||
Dividends (dollars per share) | $ 0.15 | $ 0.15 |
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Cash flows from operating activities: | ||
Net income | $ 14.5 | $ 25.5 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Loss from discontinued operations, net of tax | 0.0 | (0.2) |
Depreciation and amortization | 47.8 | 38.8 |
Share-based compensation expense | 9.4 | 6.8 |
Deferred income taxes | 1.1 | (4.1) |
Gains on sale of property, equipment and marketable securities | (0.2) | (0.5) |
Impairment losses | 1.2 | 1.8 |
Retirement benefit funding (more) less than expense: | ||
Pension | 0.3 | 2.8 |
Other than pension | 4.5 | 5.2 |
Remeasurement losses due to Argentina and Venezuela currency devaluations | 3.9 | (2.8) |
Other operating | 3.2 | 3.1 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable and income taxes receivable | (36.8) | (32.7) |
Accounts payable, income taxes payable and accrued liabilities | (47.9) | (13.6) |
Restricted cash held for customers | (36.8) | 44.0 |
Customer obligations | 11.3 | (0.5) |
Prepaid and other current assets | (10.2) | (15.7) |
Other | (3.3) | (1.1) |
Net cash provided by operating activities | (38.0) | 56.8 |
Cash flows from investing activities: | ||
Capital expenditures | (35.2) | (36.7) |
Acquisitions, net of cash acquired | (129.9) | 0.0 |
Purchases | (1.1) | (13.5) |
Sales | 0.4 | 0.5 |
Cash proceeds from sale of property and equipment | 1.6 | 1.1 |
Net cash used by investing activities | (164.2) | (48.6) |
Cash flows from financing activities: | ||
Short-term borrowings | (5.5) | 16.1 |
Cash supply chain customer debt | 0.0 | 0.9 |
Borrowings | 310.2 | 0.0 |
Repayments | (502.9) | 0.0 |
Borrowings | 333.2 | 1.6 |
Repayments | (8.0) | (13.3) |
Payment of acquisition-related obligation | (1.5) | (0.1) |
Debt financing costs | 3.9 | 0.0 |
Dividends to: | ||
Shareholders of Brink’s | (7.4) | (7.6) |
Noncontrolling interests in subsidiaries | 0.0 | (0.7) |
Tax withholdings associated with share-based compensation | (7.3) | (11.2) |
Other | (0.3) | 0.5 |
Net cash provided by financing activities | 106.6 | (13.8) |
Effect of exchange rate changes on cash | (3.6) | 0.3 |
Cash, cash equivalents and restricted cash: | ||
Increase (decrease) | (99.2) | (5.3) |
Balance at beginning of period | 479.5 | 726.9 |
Balance at end of period | $ 380.3 | $ 721.6 |
Basis of presentation |
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Accounting Policies [Abstract] | |||||||||||||
Basis of presentation | Basis of presentation The Brink’s Company (along with its subsidiaries, “Brink’s” or “we”) has three operating segments:
Our unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and applicable quarterly reporting regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes in our Annual Report on Form 10-K for the year ended December 31, 2018. We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements. Actual results could differ materially from these estimates. The most significant estimates are related to goodwill and other long-lived assets, pension and other retirement benefit obligations, legal contingencies and deferred tax assets. Consolidation The condensed consolidated financial statements include our controlled subsidiaries. Control is determined based on ownership rights or, when applicable, based on whether we are considered to be the primary beneficiary of a variable interest entity. See "Venezuela" section below for further information. For controlled subsidiaries that are not wholly-owned, the noncontrolling interests are included in net income and in total equity. Investments in businesses that we do not control, but for which we have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method and our proportionate share of income or loss is recorded in other operating income (expense). Investments in businesses for which we do not have the ability to exercise significant influence over operating and financial policies are accounted for at fair value, if readily determinable, with changes in fair value recognized in net income. For equity investments that do not have a readily determinable fair value, we measure these investments at cost minus impairment, if any, plus or minus changes from observable price changes. All intercompany accounts and transactions have been eliminated in consolidation. Foreign Currency Translation Our condensed consolidated financial statements are reported in U.S. dollars. Our foreign subsidiaries maintain their records primarily in the currency of the country in which they operate. The method of translating local currency financial information into U.S. dollars depends on whether the economy in which our foreign subsidiary operates has been designated as highly inflationary or not. Economies with a three-year cumulative inflation rate of more than 100% are considered highly inflationary. Assets and liabilities of foreign subsidiaries in non-highly inflationary economies are translated into U.S. dollars using rates of exchange at the balance sheet date. Translation adjustments are recorded in other comprehensive income (loss). Revenues and expenses are translated at rates of exchange in effect during the year. Transaction gains and losses are recorded in net income. Foreign subsidiaries that operate in highly inflationary countries use the U.S. dollar as their functional currency. Local currency monetary assets and liabilities are remeasured into U.S. dollars using rates of exchange as of each balance sheet date, with remeasurement adjustments and other transaction gains and losses recognized in earnings. Other than nonmonetary equity securities, nonmonetary assets and liabilities do not fluctuate with changes in local currency exchange rates to the dollar. For nonmonetary equity securities traded in highly inflationary economies, the fair market value of the equity securities are remeasured at the current exchange rates to determine gain or loss to be recorded in net income. Revenues and expenses are translated at rates of exchange in effect during the year. Argentina We operate in Argentina through wholly owned subsidiaries and a smaller controlled subsidiary (together "Brink's Argentina"). Revenues from Brink's Argentina represented approximately 6% of our consolidated revenues for the first three months of 2019 and 8% of our consolidated revenues for the first three months of 2018. The operating environment in Argentina continues to present business challenges, including ongoing devaluation of the Argentine peso and significant inflation. In the first three months of 2019 and 2018, the Argentine peso declined approximately 13% (from 37.6 to 43.3 pesos to the U.S. dollar) and approximately 8% (from 18.6 to 20.2 pesos to the U.S. dollar), respectively. For the year ended December 31, 2018, the Argentine peso declined approximately 50% (from 18.6 to 37.6 pesos to the U.S. dollar). Beginning July 1, 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, we consolidated Brink's Argentina using our accounting policy for subsidiaries operating in highly inflationary economies beginning with the third quarter of 2018. Argentine peso-denominated monetary assets and liabilities are remeasured at each balance sheet date using the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In the second half of 2018, we recognized a $6.2 million pretax remeasurement loss. In the first three months of 2019, we recognized a $3.9 million pretax remeasurement loss. At March 31, 2019, Argentina's economy remains highly inflationary for accounting purposes. At March 31, 2019, we had net monetary assets denominated in Argentine pesos of $28.4 million (including cash of $17.2 million). At March 31, 2019, we had net nonmonetary assets of $149.7 million (including $99.8 million of goodwill). At March 31, 2019, we had no equity securities denominated in Argentine pesos. Venezuela Deconsolidation. Our Venezuelan operations offer transportation and route-based logistics management services for cash and valuables throughout Venezuela. Political and economic conditions in Venezuela, the impact of local laws on our business as well as the currency exchange control regulations and continued reductions in access to U.S. dollars through official currency exchange mechanisms, resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar and the U.S. dollar. These conditions restricted the ability of our Venezuelan operations to pay dividends and royalties. It also restricted the ability for our Venezuela business to settle other operating liabilities which significantly increased the risk that this business will no longer be self-sustaining. The currency exchange regulations, combined with other government regulations, such as price controls and strict labor laws, significantly limited our ability to make and execute operational decisions at our Venezuelan subsidiaries. With the May 2018 re-election of the President in Venezuela for an additional six-year term, we expect these conditions to continue for the foreseeable future. As a result of the conditions described above, we concluded that, effective June 30, 2018, we did not meet the accounting criteria for control over our Venezuelan operations and, as a result, we began reporting the results of our investment in our Venezuelan subsidiaries using the cost method of accounting. This change resulted in a pretax charge of $127 million in the second quarter of 2018. The pretax charge included $106 million of foreign currency translation losses and benefit plan adjustments previously included in accumulated other comprehensive loss. It also included the derecognition of the carrying amounts of our Venezuelan operations’ assets and liabilities, including $32 million of assets and $11 million of liabilities, that were no longer reported in our condensed consolidated balance sheet as of June 30, 2018. We determined the fair value of our investment in, and receivables from, our Venezuelan subsidiaries to be insignificant based on our expectations of dividend payments and settlements of such receivables in future periods. For reporting periods beginning after June 30, 2018, we have not included the operating results of our Venezuela operations. In 2019 and 2018, we provided immaterial amounts of financial support to our Venezuela operations. We may incur losses resulting from our Venezuelan business to the extent that we provide U.S. dollars or make future investments in our Venezuelan subsidiaries, including any additional investments made directly in our Venezuelan subsidiaries or additional costs incurred by us to address compliance with recent sanctions and other regulatory requirements imposed by the U.S. government that restrict our ability to conduct business in Venezuela. We continue to monitor the situation in Venezuela, including the imposition of sanctions by the U.S. government targeting Venezuela. Highly Inflationary Accounting. The economy in Venezuela has had significant inflation in the last several years. Prior to deconsolidation as of June 30, 2018, we reported our Venezuelan results using our accounting policy for subsidiaries operating in highly inflationary economies. Results from our Venezuelan operations prior to the June 30, 2018 deconsolidation are included in items not allocated to segments and are excluded from the operating segments. Remeasurement rates during 2018. Prior to deconsolidation as of June 30, 2018, in the first six months of 2018, the rate declined approximately 97%. We received only minimal U.S. dollars through this exchange mechanism. In the first three months of 2018, we recognized a $2.8 million pretax remeasurement gain. The after-tax effect of this gain attributable to noncontrolling interest was $2.0 million. New Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue From Contracts with Customers. Under this standard, an entity recognizes an amount of revenue to which it expects to be entitled when the transfer of goods or services to customers occurs. The standard requires expanded disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted this standard effective January 1, 2018 using the modified retrospective method and recognized a cumulative-effect adjustment increasing retained earnings by $1.5 million. The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, in January 2016. This new guidance changes the accounting related to the classification and measurement of certain equity investments. Equity investments with readily determinable fair values must be measured at fair value. All changes in fair value will be recognized in net income as opposed to other comprehensive income. We adopted ASU 2016-01 effective January 1, 2018 and recognized a cumulative-effect adjustment increasing retained earnings by $1.1 million. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which changes the timing of when certain intercompany transactions are recognized within the provision for income taxes. We adopted ASU 2016-16 effective January 1, 2018 using the modified retrospective method and we recognized a cumulative-effect adjustment increasing retained earnings by $0.7 million. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the recognition of right-of-use assets and lease liabilities by lessees for certain leases classified as operating leases and also requires expanded disclosures regarding leasing activities. The accounting for capital leases remains substantially unchanged. We have adopted the standard effective January 1, 2019 and have elected to adopt the new standard at the adoption date through a cumulative-effect adjustment to the opening balance of retained earnings. Under this approach, we will continue to report comparative periods under ASC 840. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical lease classification. We also made an accounting policy election to exclude leases with an initial term of 12 months or less from the condensed consolidated balance sheet. We will recognize those lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. As part of this adoption, we have implemented internal controls and key system functionality to enable the preparation of financial information. The adoption of the standard resulted in recording right-of-use assets of $310.1 million and lease liabilities of $320.3 million as of January 1, 2019. The right-of-use assets are lower than the lease liabilities as existing deferred rent and lease incentive liabilities were recorded against the right-of-use assets at adoption in accordance with the standard. The standard did not affect our condensed consolidated statements of operations or our condensed consolidated statements of cash flows. The standard had no impact on our debt-covenant compliance under our current agreements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, which eliminates the requirement that an entity perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. We early adopted this ASU effective January 1, 2019. The early adoption did not have any impact on our condensed consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities, which amends and simplifies the application of hedge accounting guidance to better portray the economic results of risk management activities in the financial statements. The guidance expands the ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, and eases certain hedge effectiveness assessment requirements. We adopted the standard effective January 1, 2019 with no significant impact on our condensed consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“Tax Reform Act”). We adopted ASU 2018-02 effective January 1, 2019 and elected to recognize a cumulative-effect adjustment increasing retained earnings by $28.8 million related to the change in the U.S. federal corporate tax rate. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which changes the fair value measurement disclosure requirements. The guidance is effective January 1, 2020 with early adoption permitted. We are currently evaluating the potential impact of the standard on financial reporting and the timing of adoption. |
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Revenue from contracts with customers | Revenue from Contracts with Customers Performance Obligations We provide various services to meet the needs of our customers and we group these service offerings into three broad categories: Core Services, High-Value Services and Other Security Services. Core Services Cash-in-transit ("CIT") and ATM services are core services we provide to customers throughout the world. We charge customers per service performed or based on the value of goods transported. CIT services generally involve the secure transportation of cash, securities and other valuables between businesses, financial institutions and central banks. ATM services are generally composed of management services, including cash replenishment and forecasting, remote monitoring, transaction processing, installation and maintenance. High-Value Services Our high-value services leverage our brand, global infrastructure and core services and include cash management services, global services and payment services. We offer a variety of cash management services such as currency and coin counting and sorting, deposit preparation and reconciliation, and safe device installation and servicing (including our CompuSafe® service). Our global services business provides secure ground, sea and air transportation and storage of highly-valued commodities including diamonds, jewelry, precious metals and other valuables. We also provide payment services which include bill payment and processing services on behalf of utility companies and other billers plus general purpose reloadable prepaid cards and payroll cards. Other Security Services Our other security services feature the protection of airports, offices, warehouses, stores, and public venues in Europe and Brazil. For performance obligations related to the services described above, we generally satisfy our obligations as each action to provide the service to the customer occurs. Because the customers simultaneously receive and consume the benefits from our services, these performance obligations are deemed to be satisfied over time. We use an output method, units of service provided, to recognize revenue because that is the best method to represent the transfer of our services to the customer at the agreed upon rate for each action. Although not as significant as our service offerings, we also sell goods to customers from time to time, such as safe devices. In those transactions, we satisfy our performance obligation at a point in time. We recognize revenue when the goods are delivered to the customer as that is the point in time that best represents when control has transferred to the customer. Our contracts with customers describe the services we can provide along with the fees for each action to provide the service. We typically send invoices to customers for all of the services we have provided within a monthly period and payments are generally due within 30 to 60 days of the invoice date. Although our customer contracts specify the fees for each action to provide service, the majority of the services stated in our contracts do not have a defined quantity over the contract term. Accordingly, the transaction price is considered variable as there is an unknown volume of services that will be rendered over the course of the contract. We recognize revenue for these services in the period in which they are provided to the customer based on the contractual rate at which we have the right to invoice the customer for each action. Some of our contracts with customers contain clauses that define the level of service that the customer will receive. The service level agreements (“SLA”) within those contracts contain specific calculations to determine whether the appropriate level of service has been met within a specific period, which is typically a month. We estimate SLA penalties and recognize the amounts as a reduction to revenue. Taxes collected from customers and remitted to governmental authorities are not included in revenues in the condensed consolidated statements of operations. Revenue Disaggregated by Reportable Segment and Type of Service
The majority of our revenues from contracts with customers are earned by providing services and these performance obligations are satisfied over time. Smaller amounts of revenues are earned from selling goods, such as safes, to customers where the performance obligations are satisfied at a point in time. Certain of our high-value services involve the leasing of assets, such as safes, to our customers along with the regular servicing of those safe devices. Revenues related to the leasing of these assets are recognized in accordance with applicable lease guidance (ASC 842 beginning in 2019 and ASC 840 prior to 2019), but are included in the above table as the amounts are a small percentage of overall revenues. Contract Balances Contract Asset Although payment terms and conditions can vary, for the majority of our customer contracts, we invoice for all of the services provided to the customer within a monthly period. For certain customer contracts, the timing of our performance may precede our right to invoice the customer for the total transaction price. For example, Brink's affiliates in certain countries, primarily in South America, negotiate annual price adjustments with certain customers and, once the price increases are finalized, the pricing changes are made retroactive to services provided in earlier periods. These retroactive pricing adjustments are estimated and recognized as revenue with a corresponding contract asset in the same period in which the related services are performed. As the estimate of the ultimate transaction price changes, we recognize a cumulative catch-up adjustment for the change in estimate. Contract Liability For other customer contracts, we may obtain the right to payment or receive customer payments prior to performing the related services under the contract. When the right to customer payments or receipt of payments precedes our performance, we recognize a contract liability. The opening and closing balances of receivables, contract assets and contract liabilities related to contracts with customers are as follows:
The amount of revenue recognized in the three months ended March 31, 2019 that was included in the January 1, 2019 contract liability balance was $1.9 million. This revenue consists of services provided to customers who had prepaid for those services prior to the current year. We also recognized revenue of $0.4 million in the three months ended March 31, 2019 from performance obligations satisfied in the prior year. This amount is a result of changes in the transaction price of our contracts with customers. Contract Costs Sales commissions directly related to obtaining new contracts with customers qualify for capitalization. These capitalized costs are amortized to expense ratably over the term of the contracts. At March 31, 2019, the net capitalized costs to obtain contracts was $1.9 million, which is included in other assets on the condensed consolidated balance sheet. Amortization expense was not significant and there were no impairment losses recognized related to these contract costs in the first three months of 2019. Practical Expedients For the majority of our contracts with customers, we invoice a fixed amount for each unit of service we have provided. These contracts provide us with the right to invoice for an amount or rate that corresponds to the value we have delivered to our customers. The volume of services that will be provided to customers over the term is not known at inception of these contracts. Therefore, while the rate per unit of service is known, the transaction price itself is variable. For this reason, we recognize revenue from these contracts equal to the amount for which we have the contractual right to invoice the customers. Because we are not required to estimate variable consideration related to the transaction price in order to recognize revenue, we are also not required to estimate the variable consideration to provide certain disclosures. As a result, we have elected to use the optional exemption related to the disclosure of transaction prices, amounts allocated to remaining performance obligations and the future periods in which revenue will be recognized, sometimes referred to as backlog. We have also elected to use the practical expedient for financing components related to our contract liabilities. We do not recognize interest expense on contracts for which the period between our receipt of customer payments and our service to the customer is one year or less. |
Segment information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment information | Segment information 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 each operating segment based on a profit or loss measure which, at the reportable segment level, excludes the following:
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:
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Retirement benefits | Retirement benefits Pension plans We have various defined-benefit pension plans covering eligible current and former employees. Benefits under most plans are based on salary and years of service. The components of net periodic pension cost for our pension plans were as follows:
We did not make cash contributions to the primary U.S. pension plan in 2018 or the first three months of 2019. Based on assumptions described in our Annual Report on Form 10-K for the year ended December 31, 2018, we do not expect to make any additional contributions to the primary U.S. pension plan until 2022. Retirement benefits other than pensions We provide retirement healthcare benefits for eligible current and former U.S., Canadian, and Brazilian employees. Retirement benefits related to our former U.S. coal operations include medical benefits provided by the Pittston Coal Group Companies Employee Benefit Plan for United Mine Workers of America Represented Employees (the “UMWA plans”) as well as costs related to Black Lung obligations. The components of net periodic postretirement cost related to retirement benefits other than pensions were as follows:
The components of net periodic pension cost and net periodic postretirement cost other than the service cost component are included in interest and other nonoperating income (expense) in the condensed consolidated statements of operations. |
Income taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxes
Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Tax Reform Act”) was enacted into law. The Tax Reform Act includes a reduction in the federal tax rate for corporations from 35% to 21% as of January 1, 2018, a one-time transition tax on the cumulative undistributed earnings of foreign subsidiaries as of December 31, 2017, a repeal of the corporate alternative minimum tax, and more extensive limitations on deductibility of performance-based compensation for named executive officers. Other provisions effective as of January 1, 2018, which could materially impact the Company in the near-term, include the creation of a new U.S. minimum tax on foreign earnings called the Global Intangible Low-Taxed Income (“GILTI”) and limitations on the deductibility of interest expense. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Reform Act, the Company recorded provisional amounts as of December 31, 2017, in accordance with Staff Accounting Bulletin No. 118 ("SAB 118"). We recorded a provisional one-time non-cash charge of $92 million in the fourth quarter of 2017 to remeasure the deferred tax assets for the new rate and for other legislative changes. In the fourth quarter of 2018, we recorded a benefit of $2.3 million to reverse a component of the provisional one-time non-cash charge as a result of guidance issued by the U.S. authorities. We filed our 2017 U.S. federal income tax return in October 2018, which did not reflect a U.S. federal current tax liability for the transition tax due to our high-tax foreign income, but we recorded an incremental $1.3 million of foreign tax credits, offset with a full valuation allowance in the fourth quarter of 2018 which was in addition to the provisional $31.1 million foreign tax credit offset with a full valuation allowance related to the transition tax recorded in the fourth quarter of 2017. We did not record a current state tax liability related to the transition tax in accordance with the interpretation of existing state laws and the provisional estimates in the fourth quarter of 2017, but we recorded the state impact of the transition tax of $0.2 million when we filed our tax returns in the fourth quarter of 2018. We adopted an accounting policy related to the provision of deferred taxes related to GILTI and determined that we would not record deferred taxes with respect to GILTI, but would instead treat GILTI as a current period cost. We did not change our assertion on the determination of which subsidiaries that we consider to be permanently invested and for which we do not expect to repatriate to the U.S. as a result of the Tax Reform Act. The accounting for the Tax Reform Act was completed in the fourth quarter of 2018 in accordance with SAB 118. 2019 Compared to U.S. Statutory Rate The effective income tax rate on continuing operations in the first three months of 2019 was greater than the 21% U.S. statutory tax rate primarily due to the geographical mix of earnings, the seasonality of book losses for which no tax benefit can be recorded, nondeductible expenses in Mexico, taxes on cross border payments and the characterization of a French business tax as an income tax, partially offset by the tax benefits related to the distribution of share-based payments. 2018 Compared to U.S. Statutory Rate The effective income tax rate on continuing operations in the first three months of 2018 was greater than the 21% U.S. statutory tax rate primarily due to the geographical mix of earnings, the seasonality of book losses for which no tax benefit can be recorded, nondeductible expenses in Mexico, taxes on cross border payments and the characterization of a French business tax as an income tax, partially offset by the significant tax benefits related to the distribution of share-based payments and a French income tax credit. |
Acquisitions and Dispositions |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions We account for business combinations using the acquisition method. Under the acquisition method of accounting, assets acquired and liabilities assumed from these operations are recorded at fair value on the date of acquisition. The condensed consolidated statements of operations include the results of operations for each acquired entity from the date of acquisition. Rodoban Transportes Aereos e Terrestres Ltda., Rodoban Servicos e Sistemas de Seguranca Ltda., and Rodoban Seguranca e Transporte de Valores Ltda ("Rodoban") On January 4, 2019, we acquired 100% of the capital stock of Rodoban in Brazil for $131 million. Rodoban provides cash-in-transit, money processing and ATM services and generates annual revenues of approximately $80 million. The Rodoban business is expected to expand our operations in southeastern Brazil and will be integrated with our existing Brink's Brazil operations. Rodoban has approximately 2,900 employees, 13 branches and about 190 armored vehicles across its operations. We have provisionally estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition in the following table. The determination of estimated fair value required management to make significant estimates and assumptions. The amounts reported are considered provisional as we are completing the valuations that are required to allocate the purchase price. As a result, the allocation of the provisional purchase price will change in the future.
Dunbar Armored, Inc. ("Dunbar") U.S. Cash Management business On August 13, 2018, we acquired 100% of the shares of Dunbar for approximately $547 million, subject to a working capital adjustment. The Dunbar business is being integrated with our existing Brink's U.S. operations. This acquisition is expected to expand our customer base in the U.S. as a result of Dunbar's focus on small-to-medium sized retailers and financial institutions. Dunbar has approximately 5,400 employees, 78 branches and over 1,600 armored vehicles across its operations. We have provisionally estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition in the following table. The determination of estimated fair value required management to make significant estimates and assumptions. The amounts reported are considered provisional as we are completing the valuations that are required to allocate the purchase price. As a result, the allocation of the provisional purchase price will change in the future. In the fourth quarter of 2018, our fair value estimates of acquisition date intangible assets decreased approximately $20 million, acquisition date goodwill increased approximately $24 million, acquisition date other noncurrent assets increased approximately $11 million and acquisition date noncurrent liabilities increased approximately $13 million as compared to our initial estimates in the period of acquisition. There have been no other significant changes to our fair value estimates of the net assets acquired for the Dunbar acquisition.
Pro forma disclosures The pro forma consolidated results of Brink’s presented below reflect a hypothetical ownership as of January 1, 2017 for the businesses we acquired during 2018 and a hypothetical ownership as of January 1, 2018 for the business we acquired in the first three months of 2019.
Acquisition costs We have incurred $0.4 million in transaction costs related to business acquisitions in the first three months of 2019 ($0.5 million in the first three months of 2018). These costs are classified in the condensed consolidated statements of operations as selling, general and administrative expenses. |
Accumulated other comprehensive income (loss) |
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Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) Other comprehensive income (loss), including the amounts reclassified from accumulated other comprehensive loss into earnings, was as follows:
The changes in accumulated other comprehensive loss attributable to Brink’s are as follows:
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Fair value of financial instruments |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments | Fair value of financial instruments Investments in Mutual Funds We have investments in mutual funds that are carried at fair value in the financial statements. For these investments, fair value was based on quoted market prices, which we have categorized as a Level 1 valuation. Fixed-Rate Debt The fair value and carrying value of our fixed-rate debt are as follows:
The fair value estimate of our senior unsecured notes was based on the present value of future cash flows, discounted at rates for similar instruments at the measurement date, which we have categorized as a Level 3 valuation. Forward and Swap Contracts We have outstanding foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies. At March 31, 2019, the notional value of our shorter term outstanding foreign currency forward and swap contracts was $146 million, with average maturities of approximately one month. These shorter term foreign currency forward and swap contracts primarily offset exposures in the euro and the British pound and are not designated as hedges for accounting purposes and, accordingly, changes in their fair value are recorded immediately in earnings. At March 31, 2019, the fair value of these shorter term foreign currency contracts was not significant. In the first quarter of 2019, we entered into a longer term cross currency swap contract to hedge exposure in Brazilian real, which is designated as a cash flow hedge for accounting purposes. At March 31, 2019, the notional value of this longer term contract was $143 million with a weighted-average maturity of 2.7 years. We recognized net gains of $2.4 million on this contract, of which gains of $3.8 million were included in other operating income (expense) to offset transaction losses of $3.8 million and expenses of $1.4 million were included in interest expense in the first three months of 2019. At March 31, 2019, the fair value of the longer term cross currency swap contract was a $1.9 million net asset, of which a $6.1 million asset is included in other assets and a $4.2 million liability is included in accrued liabilities on the condensed consolidated balance sheet. In the first quarter of 2016, we entered into two interest rate swaps that hedge cash flow risk associated with changes in variable interest rates and that are designated as cash flow hedges for accounting purposes. At March 31, 2019, the notional value of these contracts was $40 million with a remaining weighted-average maturity of 1.0 years. At March 31, 2019, the fair value of these interest rates swaps was a net asset of $0.8 million, of which $0.5 million was included in prepaid expenses and other and $0.3 million was included in other assets on the condensed consolidated balance sheet. The effect of these swaps are included in interest expense and were not significant in the first three months of 2019. In the first quarter of 2019, we entered into ten interest rate swaps that hedge cash flow risk associated with changes in variable interest rates and that are designated as cash flow hedges for accounting purposes. At March 31, 2019, the notional value of these contracts was $400 million with a remaining weighted-average maturity of 2.5 years. At March 31, 2019, the fair value of these interest rate swaps was a net liability of $6.7 million, of which $0.5 million was included in accrued liabilities and $6.2 million was included in other liabilities on the condensed consolidated balance sheet. The effect of these swaps are included in interest expense and were not significant in the first three months of 2019. The fair values of these forward and swap contracts are based on the present value of net future cash payments and receipts, which we have categorized as a Level 2 valuation. Contingent Consideration The estimated fair value of our liabilities for contingent consideration represents the fair value of the potential amounts payable for our acquisition of Maco Transportadora. The remaining contingent amount is expected to be paid in a scheduled second installment in the fourth quarter of 2019, with the final amount paid based partially on the retention of customer revenue versus a target revenue amount. The remaining contingent consideration arrangement requires us to pay potential undiscounted amounts between $0 to $15.1 million based on retaining the revenue levels of existing customers at the acquisition dates. If there is a shortfall in revenues, a multiple of 2.5 is applied to the revenue shortfall and the contingent consideration to be paid to the former owners is reduced. We used a probability-weighted approach to estimate the fair value of these contingent consideration payments. The fair value of the contingent consideration is the full $15.1 million potentially payable as of March 31, 2019 as we believe it is unlikely that the contingent consideration payments will be reduced for a revenue shortfall. At March 31, 2019, this $15.1 million was included in accrued liabilities on the condensed consolidated balance sheet. The fair value of this liability was estimated using a discounted cash flow technique with significant inputs that are not observable in the market and thus represents a Level 3 valuation. The significant inputs in the Level 3 valuation not supported by market activity included our probability assessments of expected future cash flows related to our acquisition of this entity during the period from acquisition to the estimated settlement date of the remaining payment. The contingent consideration payments may differ from the amounts that are ultimately paid, with any changes in the liabilities recorded in interest and other nonoperating expense in our condensed consolidated statements of operations until the liabilities are settled. Other Financial Instruments Other financial instruments include cash and cash equivalents, accounts receivable, floating rate debt, accounts payable and accrued liabilities. The financial statement carrying amounts of these items approximate the fair value. There were no transfers in or out of any of the levels of the valuation hierarchy in the first three months of 2019. |
Debt |
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Debt | Debt
Long-Term Debt Senior Secured Credit Facility In February 2019, we amended our senior secured credit facility (the “Senior Secured Credit Facility”) with Wells Fargo Bank, National Association, as administrative agent. After the amendment, the Senior Credit Facility consists of a $1 billion revolving credit facility (the "Revolving Credit Facility") and an $800 million term loan facility (the "Term Loan Facility"). Prior to the amendment, the Term Loan Facility had an outstanding balance of approximately $469 million. The proceeds from the amendment were used to repay outstanding principal under the Revolving Credit Facility as well as certain fees related to the closing of the transaction. Loans under the Revolving Credit Facility mature five years after the amendment date (February 8, 2024). Principal payments are due quarterly for the amended Term Loan Facility equal to 1.25% of the initial loan amount with a final payment due on February 8, 2024. Interest rates for the Senior Secured Credit Facility are based on LIBOR plus a margin or an alternate base rate plus a margin. The Revolving Credit Facility allows us to borrow money or issue letters of credit (or otherwise satisfy credit needs) on a revolving basis over the term of the facility. As of March 31, 2019, $853 million was available under the Revolving Credit Facility. The obligations under the Senior Secured Credit Facility are secured by a first-priority lien on all or substantially all of the assets of the Company and certain of its domestic subsidiaries, including a first-priority lien on equity interests of certain of the Company’s direct and indirect subsidiaries. The Company and certain of its domestic subsidiaries also guarantee the obligations under the Senior Secured Credit Facility. The margin on both LIBOR and alternate base rate borrowings under the Senior Secured Credit Facility is based on the Company’s consolidated net leverage ratio. The margin on LIBOR borrowings, which can range from 1.25% to 2.00%, was 1.75% at March 31, 2019. The margin on alternate base rate borrowings, which can range from 0.25% to 1.00%, was 0.75% as of March 31, 2019. We also pay an annual commitment fee on the unused portion the Revolving Credit Facility based on the Company’s consolidated net leverage ratio. The commitment fee, which can range from 0.15% to 0.30%, was 0.25% as of March 31, 2019. Senior Unsecured Notes In October 2017, we issued at par ten-year senior unsecured notes (the "Senior Notes") in the aggregate principal amount of $600 million. The Senior Notes will mature on October 15, 2027 and bear an annual interest rate of 4.625%. The Senior Notes are general unsecured obligations guaranteed by certain of the Company’s existing and future U.S. subsidiaries, which are also guarantors under the Senior Secured Credit Facility. The Senior Notes have not been and will not be registered under the Securities Act of 1933 (the “Securities Act”) or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The notes were offered in the United States only to persons reasonably believed to be qualified institutional buyers in reliance on the exception from registration set forth in Rule 144A under the Securities Act and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. Letter of Credit Facilities and Bank Guarantee Facilities We have two committed letter of credit facilities totaling $64 million, of which approximately $30 million was available at March 31, 2019. At March 31, 2019, we had undrawn letters of credit and guarantees of $34 million issued under these facilities. A $10 million facility expires in April 2022 and a $54 million facility expires in December 2019. We have three uncommitted letter of credit facilities totaling $97 million, of which approximately $55 million was available at March 31, 2019. At March 31, 2019, we had undrawn letters of credit of $42 million issued under these facilities. A $17 million facility expires in August 2019, a $40 million facility expires in September 2019 and another $40 million facility expires in January 2020. The Senior Secured Credit Facility is also available for issuance of letters of credit and bank guarantees. The Senior Secured Credit Facility, Senior Unsecured Notes, the Letter of Credit Facilities and Bank Guarantee Facilities contain various financial and other covenants. The financial covenants, among other things, limit our ability to provide liens, restrict fundamental changes, limit transactions with affiliates and unrestricted subsidiaries, restrict changes to our fiscal year and to organizational documents, limit asset dispositions, limit the use of proceeds from asset sales, limit sale and leaseback transactions, limit investments, limit the ability to incur debt, restrict certain payments to shareholders, limit negative pledges, limit the ability to change the nature of our business, provide for a maximum consolidated net leverage ratio and provide for minimum coverage of interest costs. If we were not to comply with the terms of our various financing agreements, the repayment terms could be accelerated and the commitments could be withdrawn. An acceleration of the repayment terms under one agreement could trigger the acceleration of the repayment terms under the other financing agreements. We were in compliance with all financial covenants at March 31, 2019. |
Leases Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases We lease facilities, vehicles, CompuSafe® units, computers and other equipment under long-term operating and financing leases with varying terms. Most of the operating leases contain renewal and/or purchase options at our sole discretion. The renewal periods differ by asset class and by country and are included in our determination of lease term if we determine we are reasonably certain to exercise the option. We have taken the component election for all material asset categories, except CompuSafe units and armored vehicles. This election allows us to account for lease components (e.g., fixed payments or variable payments that depend on a rate that can be determined at commencement, including rent for the right to use the asset) together with nonlease components (e.g., other fixed payments that deliver a good or service including common-area maintenance costs) in the calculation of the right-of-use asset and corresponding liability. Variable costs, such as inflation adjusted payments for facilities, or nonlease components that vary periodically (included as part of the component election), are expensed as incurred. Our leases do not contain any material residual value guarantees or material restrictive covenants. The components of lease assets and liabilities were as follows:
The components of lease expense were as follows:
Net rent expense and amortization expense and interest on financing leases included in continuing operations was $36.6 million for the three months ended March 31, 2018. Other information related to leases was as follows:
As of December 31, 2018, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:
As of December 31, 2018, minimum repayments of long-term debt under financing leases were as follows:
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Share-based compensation plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation plans | Share-based compensation plans We have share-based compensation plans to attract and retain employees and nonemployee directors and to more closely align their interests with those of our shareholders. We have outstanding share-based awards granted to employees under the 2013 Equity Incentive Plan ("2013 Plan") and the 2017 Equity Incentive Plan (the "2017 Plan). These plans permit grants of restricted stock, restricted stock units, performance stock, performance units, stock appreciation rights, stock options, as well as other share-based awards to eligible employees. The 2013 Plan and the 2017 Plan also permit cash awards to eligible employees. The 2017 Plan became effective May 2017. No further grants of awards will be made under the the 2013 Plan, although awards under this prior plan remain outstanding. We also have outstanding deferred stock units granted to directors under the 2017 Plan. Share-based awards were previously granted to directors and remain outstanding under the Non-Employee Director's Equity Plan and the Directors’ Stock Accumulation Plan, which has expired. Outstanding awards at March 31, 2019 include performance share units, restricted stock units, deferred stock units, performance-based stock options, time-based stock options and certain awards that will be settled in cash. Compensation Expense Compensation expense is measured using the fair-value-based method. For employee and director awards considered equity grants, compensation expense is recognized from the award or grant date to the earlier of the retirement-eligible date or the vesting date. For awards considered liability awards, compensation cost is based on the change in the fair value of the instrument for each reporting period and the percentage of the requisite service that has been rendered. Compensation cost associated with liability awards was not significant in the three months ended March 31, 2019 or the prior year period. Compensation expenses are classified as selling, general and administrative expenses in the condensed consolidated statements of operations. Compensation expenses for the share-based awards were as follows:
Performance-Based Stock Options In 2018, 2017 and 2016, we granted performance-based stock options that have a service condition as well as a market condition. In addition, some of the awards granted in 2016 contain a non-financial performance condition. We measure the fair value of these performance-based options at the grant date using a Monte Carlo simulation model. The following table summarizes performance-based stock option activity during the first three months of 2019:
Time-Based Stock Options We granted time-based stock options that contain only a service condition. We measure the fair value of these time-based options at the grant date using a Black-Scholes-Merton option pricing model. The following table summarizes time-based stock option activity during the first three months of 2019:
Restricted Stock Units (“RSUs”) We granted RSUs that contain only a service condition. We measure the fair value of RSUs based on the price of Brink’s stock at the grant date, adjusted for a discount for dividends not received or accrued during the vesting period. The following table summarizes RSU activity during the first three months of 2019:
Performance Share Units ("PSUs”) We granted Internal Metric PSUs ("IM PSUs") and Total Shareholder Return PSUs ("TSR PSUs"). IM PSUs contain a performance condition as well as a service condition. We measure the fair value of these PSUs based on the price of Brink’s stock at the grant date, adjusted for a discount for dividends not received or accrued during the vesting period. For the IM PSUs granted in 2019, the performance period is from January 1, 2019 to December 31, 2021. TSR PSUs contain a market condition as well as a service condition. We measure the fair value of PSUs containing a market condition at the grant date using a Monte Carlo simulation model. For the TSR PSUs granted in 2019, the performance period is from January 1, 2019 to December 31, 2021. The following table summarizes all PSU activity during the first three months of 2019:
Deferred Stock Units ("DSUs") We granted DSUs to our nonemployee directors in 2018 and in prior years. We measure the fair value of DSUs at the grant date, based on the price of Brink's stock, and, if applicable, adjusted for a discount for dividends not received or accrued during the vesting period. DSUs granted after 2014 will be paid out in shares of Brink's stock on the first anniversary of the grant date, provided that the director has not elected to defer the distribution of shares until a later date. DSUs granted prior to 2015, in general, will be paid out in shares of stock following separation from service. The following table summarizes all DSU activity during the first three months of 2019:
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Capital Stock |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Capital Stock Common Stock At March 31, 2019, we had 100 million shares of common stock authorized and 49.9 million shares issued and outstanding. Dividends We paid regular quarterly dividends on our common stock during the last two years. The payment of future dividends is at the discretion of the Board of Directors and is dependent on our future earnings, financial condition, shareholder equity levels, cash flow, business requirements and other factors. Preferred Stock At March 31, 2019, we had the authority to issue up to 2.0 million shares of preferred stock with a par value of $10 per share. Share Repurchase Program In May 2017, our board of directors authorized a $200 million share repurchase program, which will expire on December 31, 2019. We are not obligated to repurchase any specific dollar amount or number of shares, and, at March 31, 2019, approximately $106 million remains available under this program. The timing and volume of share repurchases may be executed at the discretion of management on an opportunistic basis, or pursuant to trading plans or other arrangements. Share repurchases under this program may be made in the open market, in privately negotiated transactions, or otherwise. In December 2018, we entered into an accelerated share repurchase arrangement ("ASR") with a financial institution. In exchange for a $50 million up-front payment at the beginning of the purchase period, the financial institution delivered to us 700,000 shares of our common stock for an average repurchase price of $71.43 per share. The shares received were retired in the period they were delivered to us, and the up-front payment was accounted for as a reduction to shareholders' equity in the condensed consolidated balance sheet. For purposes of calculating earnings per share, we reported the ASR as a repurchase of our common stock in December 2018 and as a forward contract indexed to our common stock. The ASR met all of the applicable criteria for equity classification, and, as a result, was not accounted for as a derivative instrument. The ASR purchase period subsequently ended in February 2019 and we received and retired an additional 37,387 shares under the ASR, resulting in an overall average repurchase price of $67.81 per share. Additionally, during the year ended December 31, 2018, we used $43.5 million to repurchase 610,177 shares at an average price of $71.22 per share. These shares were retired upon repurchase. No additional shares were repurchased in the the quarter ended March 31, 2019. Shares Used to Calculate Earnings per Share
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Supplemental cash flow information |
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Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental cash flow information | Supplemental cash flow information
Non-cash Investing and Financing Activities We acquired $12.1 million in armored vehicles and other equipment under financing lease arrangements in the first three months of 2019 compared to $9.5 million in armored vehicles and other equipment acquired under financing lease arrangements in the first three months of 2018. Restricted Cash (Cash Supply Chain Services) In France, we offer services to certain of our customers where we manage some or all of their cash supply chains. Providing this service requires our French subsidiary to take temporary title to the cash received from the management of our customers' cash supply chains until the cash is returned to the customers. As part of this service offering, we have entered into lending arrangements with some of our customers. Cash borrowed under these lending arrangements is used in the process of managing these customers' cash supply chains. The cash for which we have temporary title and the cash borrowed under these customer lending arrangements is restricted and cannot be used for any other purpose other than to service our customers who participate in this service offering. At March 31, 2019, we held $97.1 million of restricted cash ($10.3 million represented short-term borrowings, $51.9 million represented restricted cash held for customers, and $34.9 million represented accrued liabilities). At December 31, 2018, we held $136.1 million of restricted cash ($10.5 million represented short-term borrowings, $90.3 million represented restricted cash held for customers and $35.3 million represented accrued liabilities). The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows.
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Contingent matters |
3 Months Ended |
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Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent matters | Contingent matters During the fourth quarter of 2018, we became aware of an investigation initiated by the Chilean Fiscalía Nacional Económica (the Chilean antitrust agency) related to potential anti-competitive practices among competitors in the cash logistics industry in Chile. Because no legal proceedings have been initiated against Brink’s Chile, we cannot estimate the probability of loss or any range of possible loss at this time. It is possible, however, that Brink’s Chile could become the subject of legal or administrative claims or proceedings that could result in a loss in a future period. In addition, we are involved in various other lawsuits and claims in the ordinary course of business. We are not able to estimate the loss or range of losses for some of these matters. We have recorded accruals for losses that are considered probable and reasonably estimable. Except as otherwise noted, we do not believe that it is reasonably possible the ultimate disposition of any of the lawsuits currently pending against the Company could have a material adverse effect on our liquidity, financial position or results of operations. |
Reorganization and Restructuring |
3 Months Ended |
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Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Reorganization and Restructuring | Reorganization and Restructuring 2016 Reorganization and Restructuring In the fourth quarter of 2016, management implemented restructuring actions across our global business operations and our corporate functions. As a result of these actions, we recognized $18.1 million in 2016 costs and an additional $17.3 million in 2017 under this restructuring for additional costs related to severance, asset-related adjustments, a benefit program termination and lease terminations. We recognized additional charges of $2.7 million in the first three months of 2018 under this restructuring for severance costs and asset-related adjustments. The actions under this program were substantially completed in 2018. Other Restructurings Management periodically implements restructuring actions in targeted sections of our business. As a result of these actions, we recognized charges of $1.0 million in the first three months of 2018 and $3.5 million in the first three months of 2019, primarily severance costs. For the current restructuring actions, we expect to incur additional costs between $4 million and $6 million in future periods. |
Basis of presentation (Policies) |
3 Months Ended |
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Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements. Actual results could differ materially from these estimates. The most significant estimates are related to goodwill and other long-lived assets, pension and other retirement benefit obligations, legal contingencies and deferred tax assets. |
Consolidation | Consolidation The condensed consolidated financial statements include our controlled subsidiaries. Control is determined based on ownership rights or, when applicable, based on whether we are considered to be the primary beneficiary of a variable interest entity. See "Venezuela" section below for further information. For controlled subsidiaries that are not wholly-owned, the noncontrolling interests are included in net income and in total equity. Investments in businesses that we do not control, but for which we have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method and our proportionate share of income or loss is recorded in other operating income (expense). Investments in businesses for which we do not have the ability to exercise significant influence over operating and financial policies are accounted for at fair value, if readily determinable, with changes in fair value recognized in net income. For equity investments that do not have a readily determinable fair value, we measure these investments at cost minus impairment, if any, plus or minus changes from observable price changes. All intercompany accounts and transactions have been eliminated in consolidation. |
Foreign Currency Translation | Foreign Currency Translation Our condensed consolidated financial statements are reported in U.S. dollars. Our foreign subsidiaries maintain their records primarily in the currency of the country in which they operate. The method of translating local currency financial information into U.S. dollars depends on whether the economy in which our foreign subsidiary operates has been designated as highly inflationary or not. Economies with a three-year cumulative inflation rate of more than 100% are considered highly inflationary. Assets and liabilities of foreign subsidiaries in non-highly inflationary economies are translated into U.S. dollars using rates of exchange at the balance sheet date. Translation adjustments are recorded in other comprehensive income (loss). Revenues and expenses are translated at rates of exchange in effect during the year. Transaction gains and losses are recorded in net income. Foreign subsidiaries that operate in highly inflationary countries use the U.S. dollar as their functional currency. Local currency monetary assets and liabilities are remeasured into U.S. dollars using rates of exchange as of each balance sheet date, with remeasurement adjustments and other transaction gains and losses recognized in earnings. Other than nonmonetary equity securities, nonmonetary assets and liabilities do not fluctuate with changes in local currency exchange rates to the dollar. For nonmonetary equity securities traded in highly inflationary economies, the fair market value of the equity securities are remeasured at the current exchange rates to determine gain or loss to be recorded in net income. Revenues and expenses are translated at rates of exchange in effect during the year. Argentina We operate in Argentina through wholly owned subsidiaries and a smaller controlled subsidiary (together "Brink's Argentina"). Revenues from Brink's Argentina represented approximately 6% of our consolidated revenues for the first three months of 2019 and 8% of our consolidated revenues for the first three months of 2018. The operating environment in Argentina continues to present business challenges, including ongoing devaluation of the Argentine peso and significant inflation. In the first three months of 2019 and 2018, the Argentine peso declined approximately 13% (from 37.6 to 43.3 pesos to the U.S. dollar) and approximately 8% (from 18.6 to 20.2 pesos to the U.S. dollar), respectively. For the year ended December 31, 2018, the Argentine peso declined approximately 50% (from 18.6 to 37.6 pesos to the U.S. dollar). Beginning July 1, 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, we consolidated Brink's Argentina using our accounting policy for subsidiaries operating in highly inflationary economies beginning with the third quarter of 2018. Argentine peso-denominated monetary assets and liabilities are remeasured at each balance sheet date using the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In the second half of 2018, we recognized a $6.2 million pretax remeasurement loss. In the first three months of 2019, we recognized a $3.9 million pretax remeasurement loss. At March 31, 2019, Argentina's economy remains highly inflationary for accounting purposes. At March 31, 2019, we had net monetary assets denominated in Argentine pesos of $28.4 million (including cash of $17.2 million). At March 31, 2019, we had net nonmonetary assets of $149.7 million (including $99.8 million of goodwill). At March 31, 2019, we had no equity securities denominated in Argentine pesos. Venezuela Deconsolidation. Our Venezuelan operations offer transportation and route-based logistics management services for cash and valuables throughout Venezuela. Political and economic conditions in Venezuela, the impact of local laws on our business as well as the currency exchange control regulations and continued reductions in access to U.S. dollars through official currency exchange mechanisms, resulted in an other-than-temporary lack of exchangeability between the Venezuelan bolivar and the U.S. dollar. These conditions restricted the ability of our Venezuelan operations to pay dividends and royalties. It also restricted the ability for our Venezuela business to settle other operating liabilities which significantly increased the risk that this business will no longer be self-sustaining. The currency exchange regulations, combined with other government regulations, such as price controls and strict labor laws, significantly limited our ability to make and execute operational decisions at our Venezuelan subsidiaries. With the May 2018 re-election of the President in Venezuela for an additional six-year term, we expect these conditions to continue for the foreseeable future. As a result of the conditions described above, we concluded that, effective June 30, 2018, we did not meet the accounting criteria for control over our Venezuelan operations and, as a result, we began reporting the results of our investment in our Venezuelan subsidiaries using the cost method of accounting. This change resulted in a pretax charge of $127 million in the second quarter of 2018. The pretax charge included $106 million of foreign currency translation losses and benefit plan adjustments previously included in accumulated other comprehensive loss. It also included the derecognition of the carrying amounts of our Venezuelan operations’ assets and liabilities, including $32 million of assets and $11 million of liabilities, that were no longer reported in our condensed consolidated balance sheet as of June 30, 2018. We determined the fair value of our investment in, and receivables from, our Venezuelan subsidiaries to be insignificant based on our expectations of dividend payments and settlements of such receivables in future periods. For reporting periods beginning after June 30, 2018, we have not included the operating results of our Venezuela operations. In 2019 and 2018, we provided immaterial amounts of financial support to our Venezuela operations. We may incur losses resulting from our Venezuelan business to the extent that we provide U.S. dollars or make future investments in our Venezuelan subsidiaries, including any additional investments made directly in our Venezuelan subsidiaries or additional costs incurred by us to address compliance with recent sanctions and other regulatory requirements imposed by the U.S. government that restrict our ability to conduct business in Venezuela. We continue to monitor the situation in Venezuela, including the imposition of sanctions by the U.S. government targeting Venezuela. Highly Inflationary Accounting. The economy in Venezuela has had significant inflation in the last several years. Prior to deconsolidation as of June 30, 2018, we reported our Venezuelan results using our accounting policy for subsidiaries operating in highly inflationary economies. Results from our Venezuelan operations prior to the June 30, 2018 deconsolidation are included in items not allocated to segments and are excluded from the operating segments. |
New Accounting Standards | New Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue From Contracts with Customers. Under this standard, an entity recognizes an amount of revenue to which it expects to be entitled when the transfer of goods or services to customers occurs. The standard requires expanded disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted this standard effective January 1, 2018 using the modified retrospective method and recognized a cumulative-effect adjustment increasing retained earnings by $1.5 million. The FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, in January 2016. This new guidance changes the accounting related to the classification and measurement of certain equity investments. Equity investments with readily determinable fair values must be measured at fair value. All changes in fair value will be recognized in net income as opposed to other comprehensive income. We adopted ASU 2016-01 effective January 1, 2018 and recognized a cumulative-effect adjustment increasing retained earnings by $1.1 million. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which changes the timing of when certain intercompany transactions are recognized within the provision for income taxes. We adopted ASU 2016-16 effective January 1, 2018 using the modified retrospective method and we recognized a cumulative-effect adjustment increasing retained earnings by $0.7 million. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the recognition of right-of-use assets and lease liabilities by lessees for certain leases classified as operating leases and also requires expanded disclosures regarding leasing activities. The accounting for capital leases remains substantially unchanged. We have adopted the standard effective January 1, 2019 and have elected to adopt the new standard at the adoption date through a cumulative-effect adjustment to the opening balance of retained earnings. Under this approach, we will continue to report comparative periods under ASC 840. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical lease classification. We also made an accounting policy election to exclude leases with an initial term of 12 months or less from the condensed consolidated balance sheet. We will recognize those lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. As part of this adoption, we have implemented internal controls and key system functionality to enable the preparation of financial information. The adoption of the standard resulted in recording right-of-use assets of $310.1 million and lease liabilities of $320.3 million as of January 1, 2019. The right-of-use assets are lower than the lease liabilities as existing deferred rent and lease incentive liabilities were recorded against the right-of-use assets at adoption in accordance with the standard. The standard did not affect our condensed consolidated statements of operations or our condensed consolidated statements of cash flows. The standard had no impact on our debt-covenant compliance under our current agreements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, which eliminates the requirement that an entity perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. We early adopted this ASU effective January 1, 2019. The early adoption did not have any impact on our condensed consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities, which amends and simplifies the application of hedge accounting guidance to better portray the economic results of risk management activities in the financial statements. The guidance expands the ability to hedge nonfinancial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, and eases certain hedge effectiveness assessment requirements. We adopted the standard effective January 1, 2019 with no significant impact on our condensed consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“Tax Reform Act”). We adopted ASU 2018-02 effective January 1, 2019 and elected to recognize a cumulative-effect adjustment increasing retained earnings by $28.8 million related to the change in the U.S. federal corporate tax rate. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which changes the fair value measurement disclosure requirements. The guidance is effective January 1, 2020 with early adoption permitted. We are currently evaluating the potential impact of the standard on financial reporting and the timing of adoption. |
Revenue from contracts with customers Revenue from contracts with customers (Policies) |
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Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | The amount of revenue recognized in the three months ended March 31, 2019 that was included in the January 1, 2019 contract liability balance was $1.9 million. This revenue consists of services provided to customers who had prepaid for those services prior to the current year. We also recognized revenue of $0.4 million in the three months ended March 31, 2019 from performance obligations satisfied in the prior year. This amount is a result of changes in the transaction price of our contracts with customers. Contract Costs Sales commissions directly related to obtaining new contracts with customers qualify for capitalization. These capitalized costs are amortized to expense ratably over the term of the contracts. At March 31, 2019, the net capitalized costs to obtain contracts was $1.9 million, which is included in other assets on the condensed consolidated balance sheet. Amortization expense was not significant and there were no impairment losses recognized related to these contract costs in the first three months of 2019. Practical Expedients For the majority of our contracts with customers, we invoice a fixed amount for each unit of service we have provided. These contracts provide us with the right to invoice for an amount or rate that corresponds to the value we have delivered to our customers. The volume of services that will be provided to customers over the term is not known at inception of these contracts. Therefore, while the rate per unit of service is known, the transaction price itself is variable. For this reason, we recognize revenue from these contracts equal to the amount for which we have the contractual right to invoice the customers. Because we are not required to estimate variable consideration related to the transaction price in order to recognize revenue, we are also not required to estimate the variable consideration to provide certain disclosures. As a result, we have elected to use the optional exemption related to the disclosure of transaction prices, amounts allocated to remaining performance obligations and the future periods in which revenue will be recognized, sometimes referred to as backlog. We have also elected to use the practical expedient for financing components related to our contract liabilities. We do not recognize interest expense on contracts for which the period between our receipt of customer payments and our service to the customer is one year or less. The majority of our revenues from contracts with customers are earned by providing services and these performance obligations are satisfied over time. Smaller amounts of revenues are earned from selling goods, such as safes, to customers where the performance obligations are satisfied at a point in time. Certain of our high-value services involve the leasing of assets, such as safes, to our customers along with the regular servicing of those safe devices. Revenues related to the leasing of these assets are recognized in accordance with applicable lease guidance (ASC 842 beginning in 2019 and ASC 840 prior to 2019), but are included in the above table as the amounts are a small percentage of overall revenues. Contract Balances Contract Asset Although payment terms and conditions can vary, for the majority of our customer contracts, we invoice for all of the services provided to the customer within a monthly period. For certain customer contracts, the timing of our performance may precede our right to invoice the customer for the total transaction price. For example, Brink's affiliates in certain countries, primarily in South America, negotiate annual price adjustments with certain customers and, once the price increases are finalized, the pricing changes are made retroactive to services provided in earlier periods. These retroactive pricing adjustments are estimated and recognized as revenue with a corresponding contract asset in the same period in which the related services are performed. As the estimate of the ultimate transaction price changes, we recognize a cumulative catch-up adjustment for the change in estimate. Contract Liability For other customer contracts, we may obtain the right to payment or receive customer payments prior to performing the related services under the contract. When the right to customer payments or receipt of payments precedes our performance, we recognize a contract liability. For performance obligations related to the services described above, we generally satisfy our obligations as each action to provide the service to the customer occurs. Because the customers simultaneously receive and consume the benefits from our services, these performance obligations are deemed to be satisfied over time. We use an output method, units of service provided, to recognize revenue because that is the best method to represent the transfer of our services to the customer at the agreed upon rate for each action. Although not as significant as our service offerings, we also sell goods to customers from time to time, such as safe devices. In those transactions, we satisfy our performance obligation at a point in time. We recognize revenue when the goods are delivered to the customer as that is the point in time that best represents when control has transferred to the customer. Our contracts with customers describe the services we can provide along with the fees for each action to provide the service. We typically send invoices to customers for all of the services we have provided within a monthly period and payments are generally due within 30 to 60 days of the invoice date. Although our customer contracts specify the fees for each action to provide service, the majority of the services stated in our contracts do not have a defined quantity over the contract term. Accordingly, the transaction price is considered variable as there is an unknown volume of services that will be rendered over the course of the contract. We recognize revenue for these services in the period in which they are provided to the customer based on the contractual rate at which we have the right to invoice the customer for each action. Some of our contracts with customers contain clauses that define the level of service that the customer will receive. The service level agreements (“SLA”) within those contracts contain specific calculations to determine whether the appropriate level of service has been met within a specific period, which is typically a month. We estimate SLA penalties and recognize the amounts as a reduction to revenue. Taxes collected from customers and remitted to governmental authorities are not included in revenues in the condensed consolidated statements of operations. |
Revenue from contracts with customers (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Revenue Disaggregated by Reportable Segment and Type of Service
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Contract with Customer, Asset and Liability | The opening and closing balances of receivables, contract assets and contract liabilities related to contracts with customers are as follows:
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Segment information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue and Operating Profit from Segments to Consolidated | 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:
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Retirement benefits (Tables) |
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Schedule of Net Benefit Costs | The components of net periodic pension cost for our pension plans were as follows:
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Schedule of Costs of Retirement Plans | The components of net periodic postretirement cost related to retirement benefits other than pensions were as follows:
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Income taxes (Tables) |
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Schedule of Components of Income Tax Expense (Benefit) |
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Acquisitions and Dispositions (Tables) |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
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Business Acquisition, Pro Forma Information | The pro forma consolidated results of Brink’s presented below reflect a hypothetical ownership as of January 1, 2017 for the businesses we acquired during 2018 and a hypothetical ownership as of January 1, 2018 for the business we acquired in the first three months of 2019.
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Accumulated other comprehensive income (loss) (Tables) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) | Other comprehensive income (loss), including the amounts reclassified from accumulated other comprehensive loss into earnings, was as follows:
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Reclassification Out of Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive loss attributable to Brink’s are as follows:
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Fair value of financial instruments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The fair value and carrying value of our fixed-rate debt are as follows:
|
Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt |
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Leases Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental balance sheet disclosure leases | The components of lease assets and liabilities were as follows:
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Lease expenses | The components of lease expense were as follows:
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Other information leases | Other information related to leases was as follows:
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Operating lease future minimum lease payments | As of December 31, 2018, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:
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Financing lease minimum repayments | As of December 31, 2018, minimum repayments of long-term debt under financing leases were as follows:
|
Share-based compensation plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Compensation expenses for the share-based awards were as follows:
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Option activity | The following table summarizes performance-based stock option activity during the first three months of 2019:
The following table summarizes time-based stock option activity during the first three months of 2019:
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Nonvested share activity | The following table summarizes RSU activity during the first three months of 2019:
The following table summarizes all PSU activity during the first three months of 2019:
The following table summarizes all DSU activity during the first three months of 2019:
|
Capital Stock (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares | Shares Used to Calculate Earnings per Share
|
Supplemental cash flow information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures |
|
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Reconciliation of cash, cash equivalents, and restricted cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows.
|
Basis of presentation (Details) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019
USD ($)
segment
$ / $
|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
$ / $
|
Dec. 31, 2018
USD ($)
$ / $
|
Jan. 01, 2019
USD ($)
|
Dec. 31, 2017
USD ($)
$ / $
|
|||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Number of operating segments | segment | 3 | |||||||||||
Net monetary assets | $ 1,154.3 | $ 1,206.5 | ||||||||||
Cash and cash equivalents | 283.2 | 343.4 | ||||||||||
Goodwill | 751.7 | 678.6 | ||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Deconsolidation, pretax | (8.7) | $ (15.0) | ||||||||||
Cumulative effect of change in accounting principle | 0.0 | [1] | $ 2.2 | [2] | ||||||||
Right-of-use assets, net | $ 292.2 | $ 0.0 | ||||||||||
Argentine pesos | Argentina | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Percent of Consolidated Revenue | 6.00% | 8.00% | ||||||||||
Rate decrease percent | 13.00% | 8.00% | 50.00% | |||||||||
Official exchange rate | $ / $ | 43.3 | 20.2 | 37.6 | 18.6 | ||||||||
Net remeasurement loss | $ (3.9) | $ (6.2) | ||||||||||
Net monetary assets | 28.4 | |||||||||||
Cash and cash equivalents | 17.2 | |||||||||||
Nonmonetary assets | 149.7 | |||||||||||
Goodwill | 99.8 | |||||||||||
Equity Securities | 0.0 | |||||||||||
Venezuelan bolívar fuerte | Venezuela | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Rate decrease percent | 97.00% | |||||||||||
Net remeasurement loss | $ 2.8 | |||||||||||
Loss on deconsolidation of Venezuela operations | $ 127.0 | |||||||||||
Derecognition of the carrying amounts of assets included in the deconsolidation charge | 32.0 | |||||||||||
Derecognition of the carrying amounts of liabilities included in the deconsolidation charge | 11.0 | |||||||||||
Income (loss) attributable to noncontrolling interest | 2.0 | |||||||||||
Foreign currency translation adjustments | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Deconsolidation, pretax | 0.0 | 0.0 | ||||||||||
Foreign currency translation adjustments | Venezuelan bolívar fuerte | Venezuela | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Deconsolidation, pretax | $ 106.0 | |||||||||||
Retained Earnings | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative effect of change in accounting principle | $ 28.8 | [1] | $ 3.3 | [2] | ||||||||
Accounting Standards Update 2014-09 | Retained Earnings | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative effect of change in accounting principle | $ 1.5 | |||||||||||
Accounting Standards Update 2016-01 | Retained Earnings | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative effect of change in accounting principle | 1.1 | |||||||||||
Accounting Standards Update 2016-16 | Retained Earnings | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative effect of change in accounting principle | $ 0.7 | |||||||||||
Accounting Standards Update 2016-02 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Right-of-use assets, net | $ 310.1 | |||||||||||
Lease liabilities | $ 320.3 | |||||||||||
Accounting Standards Update 2018-02 | Retained Earnings | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative effect of change in accounting principle | $ 28.8 | |||||||||||
|
Revenue from contracts with customers - disaggregation of revenue (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | $ 905.0 | $ 879.1 |
Core services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 484.4 | 419.7 |
High-value services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 384.7 | 402.1 |
Other security services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 35.9 | 57.3 |
Reportable segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 905.0 | 853.3 |
Reportable segments | Core services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 484.4 | 409.0 |
Reportable segments | High-value services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 384.7 | 387.0 |
Reportable segments | Other security services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 35.9 | 57.3 |
Reportable segments | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 434.5 | 320.1 |
Reportable segments | North America | Core services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 277.2 | 190.0 |
Reportable segments | North America | High-value services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 157.3 | 130.1 |
Reportable segments | North America | Other security services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 0.0 | 0.0 |
Reportable segments | South America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 230.3 | 254.8 |
Reportable segments | South America | Core services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 119.2 | 125.4 |
Reportable segments | South America | High-value services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 108.1 | 126.5 |
Reportable segments | South America | Other security services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 3.0 | 2.9 |
Reportable segments | Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 240.2 | 278.4 |
Reportable segments | Rest of World | Core services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 88.0 | 93.6 |
Reportable segments | Rest of World | High-value services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 119.3 | 130.4 |
Reportable segments | Rest of World | Other security services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 32.9 | 54.4 |
Other items not allocated to segments | Venezuela | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 0.0 | 25.8 |
Other items not allocated to segments | Core services | Venezuela | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 0.0 | 10.7 |
Other items not allocated to segments | High-value services | Venezuela | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | 0.0 | 15.1 |
Other items not allocated to segments | Other security services | Venezuela | ||
Disaggregation of Revenue [Line Items] | ||
Revenue disaggregated by reportable segment and type of service | $ 0.0 | $ 0.0 |
Revenue from contracts with customers Revenue from contracts with customers - contract balances (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Receivables | $ 641.0 | $ 599.5 |
Contract Asset | 1.2 | |
Contract Liability | 5.4 | |
Revenue - revenue from performance obligation in prior periods | 0.4 | |
Capitalized costs to obtain contracts | 1.9 | |
Pro Forma under Old Revenue Recognition Standard | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Receivables | 599.5 | |
Contract Asset | 1.8 | |
Contract Liability | $ 2.5 | |
Revenue recognized included in beginning balance | 1.9 | |
Accounting Standards Update 2014-09 | Impact of New Revenue Recognition Standard | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Receivable - increase (decrease) | 41.5 | |
Contract asset increase (decrease) | (0.6) | |
Contract liability - increase (decrease) | $ 2.9 |
Segment information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Segment Reporting Information [Line Items] | ||
Revenues | $ 905.0 | $ 879.1 |
Operating Profit | 58.4 | 64.8 |
Foreign currency transaction gains (losses) | (3.9) | 2.8 |
Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 905.0 | 853.3 |
Operating Profit | 110.8 | 101.8 |
Corporate expenses | ||
Segment Reporting Information [Line Items] | ||
General, administrative and other expenses | (27.1) | (31.1) |
Foreign currency transaction gains (losses) | 0.9 | (0.5) |
Reconciliation of segment policies to GAAP | 0.2 | 1.3 |
Other items not allocated to segments | ||
Segment Reporting Information [Line Items] | ||
Acquisitions and dispositions, Revenues | 0.0 | 0.0 |
Reorganization and Restructuring | (3.5) | (3.7) |
Acquisitions and dispositions, Operating profit | (17.2) | (6.5) |
Reporting compliance | (1.4) | |
Other items not allocated to segments | Venezuela operations | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0.0 | 25.8 |
Operating Profit | 0.0 | 3.5 |
Other items not allocated to segments | Argentina | ||
Segment Reporting Information [Line Items] | ||
Argentina highly inflationary impact | (4.3) | |
North America | Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 434.5 | 320.1 |
Operating Profit | 44.0 | 20.6 |
South America | Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 230.3 | 254.8 |
Operating Profit | 43.0 | 55.6 |
Rest of World | Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 240.2 | 278.4 |
Operating Profit | $ 23.8 | $ 25.6 |
Retirement benefits - Retirement Cost (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2.5 | $ 3.0 |
Interest cost on projected benefit obligation | 11.1 | 12.0 |
Return on assets – expected | (15.3) | (16.3) |
Amortization of losses | 6.0 | 8.4 |
Amortization of prior service cost | 0.0 | 0.2 |
Settlement loss | 0.3 | 0.5 |
Net periodic pension cost | 4.6 | 7.8 |
Retirement benefits other than pensions | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on projected benefit obligation | 5.9 | 5.2 |
Return on assets – expected | (3.3) | (4.2) |
Amortization of losses | 6.2 | 6.7 |
Amortization of prior service cost | (1.2) | (0.8) |
Net periodic pension cost | 7.6 | 6.9 |
U.S. Plans | Pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.0 | 0.0 |
Interest cost on projected benefit obligation | 8.5 | 8.0 |
Return on assets – expected | (12.7) | (13.4) |
Amortization of losses | 5.0 | 7.1 |
Amortization of prior service cost | 0.0 | 0.0 |
Settlement loss | 0.0 | 0.0 |
Net periodic pension cost | 0.8 | 1.7 |
Non-U.S. Plans | Pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2.5 | 3.0 |
Interest cost on projected benefit obligation | 2.6 | 4.0 |
Return on assets – expected | (2.6) | (2.9) |
Amortization of losses | 1.0 | 1.3 |
Amortization of prior service cost | 0.0 | 0.2 |
Settlement loss | 0.3 | 0.5 |
Net periodic pension cost | 3.8 | 6.1 |
UMWA Plans | Retirement benefits other than pensions | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on projected benefit obligation | 5.0 | 4.5 |
Return on assets – expected | (3.3) | (4.2) |
Amortization of losses | 5.1 | 5.5 |
Amortization of prior service cost | (1.1) | (1.1) |
Net periodic pension cost | 5.7 | 4.7 |
Black Lung and Other Plans | Retirement benefits other than pensions | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on projected benefit obligation | 0.9 | 0.7 |
Return on assets – expected | 0.0 | 0.0 |
Amortization of losses | 1.1 | 1.2 |
Amortization of prior service cost | (0.1) | 0.3 |
Net periodic pension cost | $ 1.9 | $ 2.2 |
Income taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Operating Loss Carryforwards [Line Items] | ||||
Provision for income taxes (in millions) | $ 9.7 | $ 11.4 | ||
Effective tax rate | 40.10% | 31.10% | ||
Tax Cuts and Jobs Act of 2017 | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax Reform Act Tax Expense Charge | $ 2.0 | $ 92.0 | ||
Foreign tax credit amount | 1.3 | $ 31.1 | ||
State tax amount | $ 0.2 |
Acquisitions and Dispositions - Acquired Entities (Details) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Jan. 04, 2019
USD ($)
employee
vehicle
branch
|
Aug. 13, 2018
USD ($)
employee
vehicle
branch
|
Mar. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Goodwill | $ 751.7 | $ 678.6 | ||
Rodoban | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Jan. 04, 2019 | |||
Percentage of shares acquired | 100.00% | |||
Annual revenues | $ 80.0 | |||
Entity number of employees | employee | 2,900 | |||
Entity Number of branches | branch | 13 | |||
Entity Number of armored vehicles | vehicle | 190 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Purchase consideration - cash paid | $ 133.1 | |||
Indemnification asset | (1.9) | |||
Fair value of purchase consideration | 131.2 | |||
Cash | 1.4 | |||
Accounts receivable | 8.2 | |||
Other current assets | 0.4 | |||
Property and equipment, net | 3.7 | |||
Intangible assets | 47.9 | |||
Goodwill | 80.4 | |||
Other noncurrent assets | 5.1 | |||
Current liabilities | (9.6) | |||
Noncurrent liabilities | (6.3) | |||
Fair value of net assets acquired | 131.2 | |||
Dunbar | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | Aug. 13, 2018 | |||
Percentage of shares acquired | 100.00% | |||
Entity number of employees | employee | 5,400 | |||
Entity Number of branches | branch | 78 | |||
Entity Number of armored vehicles | vehicle | 1,600 | |||
Intangible assets decrease | 20.0 | |||
Goodwill increase | 24.0 | |||
Noncurrent assets increase | 11.0 | |||
Noncurrent liability increase | $ 13.0 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Purchase consideration - cash paid | $ 546.8 | |||
Fair value of purchase consideration | 546.8 | |||
Cash | 25.8 | |||
Accounts receivable | 31.9 | |||
Other current assets | 11.7 | |||
Property and equipment, net | 57.0 | |||
Intangible assets | 162.0 | |||
Goodwill | 307.1 | |||
Other noncurrent assets | 21.1 | |||
Current liabilities | (29.7) | |||
Noncurrent liabilities | (40.1) | |||
Fair value of net assets acquired | 546.8 | |||
Customer relationships | Rodoban | ||||
Business Acquisition [Line Items] | ||||
Remaining Amortization Period | 11 years | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Intangible assets | 46.0 | |||
Customer relationships | Dunbar | ||||
Business Acquisition [Line Items] | ||||
Remaining Amortization Period | 15 years | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Intangible assets | 148.0 | |||
Trade names | Rodoban | ||||
Business Acquisition [Line Items] | ||||
Remaining Amortization Period | 1 year | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Intangible assets | 1.0 | |||
Trade names | Dunbar | ||||
Business Acquisition [Line Items] | ||||
Remaining Amortization Period | 8 years | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Intangible assets | $ 14.0 | |||
Noncompete agreements | Rodoban | ||||
Business Acquisition [Line Items] | ||||
Remaining Amortization Period | 5 years | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Intangible assets | $ 1.0 |
Acquisitions and Dispositions - Pro Forma (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Business Acquisition [Line Items] | ||
Actual revenue results included in consolidation | $ 112.2 | $ 0.0 |
Actual net income results included in consolidation | 3.5 | 0.0 |
Revenues | 905.0 | 879.1 |
Reported net income (loss) attributable to Brink's | 13.7 | 22.3 |
Pro forma revenue results | 905.6 | 999.4 |
Pro forma net income results | 13.7 | 23.8 |
Transaction costs | 0.4 | 0.5 |
Rodoban | ||
Business Acquisition [Line Items] | ||
Actual revenue results included in consolidation | 18.6 | 0.0 |
Actual net income results included in consolidation | 0.6 | 0.0 |
Pro forma revenue results | 0.6 | 20.6 |
Pro forma net income results | 0.0 | (0.7) |
Dunbar | ||
Business Acquisition [Line Items] | ||
Actual revenue results included in consolidation | 93.6 | 0.0 |
Actual net income results included in consolidation | 2.9 | 0.0 |
Pro forma revenue results | 0.0 | 99.7 |
Pro forma net income results | $ 0.0 | $ 2.2 |
Accumulated other comprehensive income (loss) - Amounts in OCI (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | $ (6.0) | $ 0.4 |
Amounts Arising During the Current Period, Income Tax | 1.3 | 0.2 |
Amounts Reclassified to Net Income (Loss), Pretax | 8.7 | 15.0 |
Amounts Reclassified to Net Income (Loss), Income Tax | (1.8) | (3.4) |
Other comprehensive income | 2.2 | 12.2 |
Cost of revenues | 702.7 | 693.6 |
Selling, general and administrative expenses | 141.7 | 123.1 |
Interest and other income (expense) | (11.2) | (13.1) |
Other operating income (expense) | 2.2 | (2.4) |
Interest expense | 23.0 | 15.0 |
Benefit plan adjustments | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | (1.3) | (1.0) |
Amounts Arising During the Current Period, Income Tax | 0.2 | 0.3 |
Amounts Reclassified to Net Income (Loss), Pretax | 11.3 | 14.8 |
Amounts Reclassified to Net Income (Loss), Income Tax | (2.7) | (3.4) |
Other comprehensive income | 7.5 | 10.7 |
Foreign currency translation adjustments | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | 0.3 | 0.1 |
Amounts Arising During the Current Period, Income Tax | 0.0 | 0.0 |
Amounts Reclassified to Net Income (Loss), Pretax | 0.0 | 0.0 |
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | 0.0 |
Other comprehensive income | 0.3 | 0.1 |
Gains (losses) on cash flow hedges | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | (5.3) | 0.4 |
Amounts Arising During the Current Period, Income Tax | 1.1 | (0.1) |
Amounts Reclassified to Net Income (Loss), Pretax | (2.6) | 0.0 |
Amounts Reclassified to Net Income (Loss), Income Tax | 0.9 | 0.0 |
Other comprehensive income | (5.9) | 0.3 |
Gains (losses) on cash flow hedges | Reclassification out of accumulated other comprehensive income | ||
Other Comprehensive Income Loss [Line Items] | ||
Other operating income (expense) | (3.8) | 0.0 |
Interest expense | 1.2 | |
AOCI Attributable to Parent | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | (6.3) | (0.5) |
Amounts Arising During the Current Period, Income Tax | 1.3 | 0.2 |
Amounts Reclassified to Net Income (Loss), Pretax | 8.7 | 14.8 |
Amounts Reclassified to Net Income (Loss), Income Tax | (1.8) | (3.4) |
Other comprehensive income | 1.9 | 11.1 |
Benefit plan adjustments | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | 0.0 | |
Amounts Arising During the Current Period, Income Tax | 0.0 | |
Amounts Reclassified to Net Income (Loss), Pretax | 0.2 | |
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | |
Other comprehensive income | 0.2 | |
Foreign currency translation adjustments | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | 0.3 | 0.9 |
Amounts Arising During the Current Period, Income Tax | 0.0 | 0.0 |
Amounts Reclassified to Net Income (Loss), Pretax | 0.0 | 0.0 |
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | 0.0 |
Other comprehensive income | 0.3 | 0.9 |
AOCI Attributable to Noncontrolling Interest | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | 0.3 | 0.9 |
Amounts Arising During the Current Period, Income Tax | 0.0 | 0.0 |
Amounts Reclassified to Net Income (Loss), Pretax | 0.0 | 0.2 |
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | 0.0 |
Other comprehensive income | 0.3 | 1.1 |
Benefit plan adjustments(a) | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | (1.3) | (1.0) |
Amounts Arising During the Current Period, Income Tax | 0.2 | 0.3 |
Amounts Reclassified to Net Income (Loss), Pretax | 11.3 | 15.0 |
Amounts Reclassified to Net Income (Loss), Income Tax | (2.7) | (3.4) |
Other comprehensive income | 7.5 | 10.9 |
Benefit plan adjustments(a) | Reclassification out of accumulated other comprehensive income | ||
Other Comprehensive Income Loss [Line Items] | ||
Cost of revenues | 1.9 | 2.4 |
Selling, general and administrative expenses | 0.6 | 0.6 |
Interest and other income (expense) | 9.7 | 11.7 |
Foreign currency translation adjustments | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | 0.6 | 1.0 |
Amounts Arising During the Current Period, Income Tax | 0.0 | 0.0 |
Amounts Reclassified to Net Income (Loss), Pretax | 0.0 | 0.0 |
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | 0.0 |
Other comprehensive income | 0.6 | 1.0 |
Gains (losses) on cash flow hedges(b) | ||
Other Comprehensive Income Loss [Line Items] | ||
Amounts Arising During the Current Period, Pretax | (5.3) | 0.4 |
Amounts Arising During the Current Period, Income Tax | 1.1 | (0.1) |
Amounts Reclassified to Net Income (Loss), Pretax | (2.6) | 0.0 |
Amounts Reclassified to Net Income (Loss), Income Tax | 0.9 | 0.0 |
Other comprehensive income | $ (5.9) | $ 0.3 |
Accumulated Other Comprehensive Income (Loss) - Reclasses Out Of AOCI (Details) - USD ($) $ in Millions |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Beginning balance | $ 153.7 | |||||||
Other comprehensive income | 2.2 | $ 12.2 | ||||||
Cumulative effect of change in accounting principle | 0.0 | [1] | 2.2 | [2] | ||||
Ending balance | 165.3 | |||||||
Benefit Plan Adjustments | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Beginning balance | (572.1) | |||||||
Other comprehensive income (loss) before reclassifications | (1.1) | |||||||
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 8.6 | |||||||
Other comprehensive income | 7.5 | 10.7 | ||||||
Ending balance | (593.4) | |||||||
Foreign Currency Translation Adjustments | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Beginning balance | (382.0) | |||||||
Other comprehensive income (loss) before reclassifications | 0.3 | |||||||
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 0.0 | |||||||
Other comprehensive income | 0.3 | 0.1 | ||||||
Ending balance | (381.7) | |||||||
Gains (Losses) on Cash Flow Hedges | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Beginning balance | 0.8 | |||||||
Other comprehensive income (loss) before reclassifications | (4.2) | |||||||
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | (1.7) | |||||||
Other comprehensive income | (5.9) | 0.3 | ||||||
Ending balance | (5.1) | |||||||
AOCI Attributable to Parent | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Beginning balance | (953.3) | |||||||
Other comprehensive income (loss) before reclassifications | (5.0) | |||||||
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 6.9 | |||||||
Other comprehensive income | 1.9 | 11.1 | ||||||
Cumulative effect of change in accounting principle | (28.8) | [1] | $ (1.1) | [2] | ||||
Ending balance | (980.2) | |||||||
Accounting Standards Update 2018-02 | Benefit Plan Adjustments | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Cumulative effect of change in accounting principle | (28.8) | |||||||
Accounting Standards Update 2018-02 | AOCI Attributable to Parent | ||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Cumulative effect of change in accounting principle | $ (28.8) | |||||||
|
Fair value of financial instruments Fair value of financial instruments (Details) |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
Jul. 18, 2017
USD ($)
|
Mar. 31, 2016
derivative_instrument
|
|
Debt Instrument [Line Items] | |||||
Other operating income (expense) | $ 2,200,000 | $ (2,400,000) | |||
Foreign currency transaction gains (losses) | (3,900,000) | 2,800,000 | |||
Interest expense | 23,000,000 | $ 15,000,000 | |||
Not Designated as Hedging Instrument | Foreign Exchange Contract | |||||
Debt Instrument [Line Items] | |||||
Notional value | $ 146,000,000 | ||||
Weighted average maturity | 1 month | ||||
Designated as Hedging Instrument | Currency Swap | |||||
Debt Instrument [Line Items] | |||||
Notional value | $ 143,000,000 | ||||
Weighted average maturity | 2 years 8 months 12 days | ||||
Foreign currency derivative instrument gains (losses) | $ 2,400,000 | ||||
Other operating income (expense) | (3,800,000) | ||||
Foreign currency transaction gains (losses) | 3,800,000 | ||||
Interest expense | 1,400,000 | ||||
Designated as Hedging Instrument | Currency Swap | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Fair value of contract | 1,900,000 | ||||
Designated as Hedging Instrument | Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Notional value | $ 40,000,000 | ||||
Weighted average maturity | 1 year 15 days | ||||
Number of interest rate swaps | derivative_instrument | 2 | ||||
Designated as Hedging Instrument | Interest Rate Swap | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Fair value of swap, net | $ 800,000 | ||||
Designated as Hedging Instrument | $400 million interest rate swap | |||||
Debt Instrument [Line Items] | |||||
Notional value | $ 400,000,000 | ||||
Weighted average maturity | 2 years 6 months | ||||
Number of interest rate swaps | derivative_instrument | 10 | ||||
Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Fair value of swap, net | $ 6,700,000 | ||||
Other Assets | Designated as Hedging Instrument | Currency Swap | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Fair value of contract | 6,100,000 | ||||
Other Assets | Designated as Hedging Instrument | Interest Rate Swap | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Fair value of swap, asset position | 0 | ||||
Accrued liabilities | Designated as Hedging Instrument | Currency Swap | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Fair value of currency contract, liability position | 4,200,000 | ||||
Accrued liabilities | Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Fair value of swap, liability position | 500,000 | ||||
Prepaid Expenses and Other Current Assets | Designated as Hedging Instrument | Interest Rate Swap | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Fair value of swap, asset position | 500,000 | ||||
Other Liabilities | Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Fair value of swap, liability position | 6,200,000 | ||||
Six hundred million senior unsecured notes | |||||
Debt Instrument [Line Items] | |||||
Carrying value | 600,000,000 | $ 600,000,000 | |||
Six hundred million senior unsecured notes | Level 3 | |||||
Debt Instrument [Line Items] | |||||
Fair value | 574,700,000 | $ 519,900,000 | |||
Maco | Level 3 | |||||
Debt Instrument [Line Items] | |||||
Contingent consideration | 15,100,000 | ||||
Maco | Accrued liabilities | Level 3 | |||||
Debt Instrument [Line Items] | |||||
Contingent consideration | $ 15,100,000 | ||||
Measurement Input, Revenue Multiple | Maco | |||||
Debt Instrument [Line Items] | |||||
Revenue multiple | 2.5 | ||||
Minimum | Maco | |||||
Debt Instrument [Line Items] | |||||
Contingent consideration | $ 0 | ||||
Maximum | Maco | |||||
Debt Instrument [Line Items] | |||||
Contingent consideration | $ 15,100,000 |
Debt (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 23.4 | $ 28.9 |
Long-term Debt Types [Abstract] | ||
Total long-term debt | 1,666.0 | 1,525.1 |
Total Debt | 1,689.4 | 1,554.0 |
Long-term Debt by Current and Noncurrent [Abstract] | ||
Current liabilities | 92.9 | 82.4 |
Noncurrent liabilities | 1,596.5 | 1,471.6 |
Term Loan A | Senior Secured Credit Facility - Amended | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 796.5 | |
Other Disclosures [Abstract] | ||
Debt issue costs | 3.5 | |
Term Loan A | Senior Secured Credit Facility - Original | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 466.9 | |
Other Disclosures [Abstract] | ||
Debt issue costs | 1.8 | |
Senior unsecured notes | Six hundred million senior unsecured notes | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 592.2 | 592.0 |
Other Disclosures [Abstract] | ||
Debt issue costs | 7.8 | 8.0 |
Revolving Credit Facility | ||
Long-term Debt Types [Abstract] | ||
Debt | 147.3 | 340.0 |
Other Non-US Dollar-denominated Facilities | ||
Long-term Debt Types [Abstract] | ||
Debt | 6.7 | 5.7 |
Financing leases | ||
Long-term Debt Types [Abstract] | ||
Financing leases | 123.3 | 120.5 |
Restricted Cash Borrowings | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 10.3 | 10.5 |
Other | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 13.1 | $ 18.4 |
Debt - Narrative (Details) |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Feb. 08, 2019
USD ($)
|
Oct. 31, 2017
USD ($)
|
Mar. 31, 2019
USD ($)
facility
|
|
Senior Secured Credit Facility - Original | |||
Debt Instrument [Line Items] | |||
Debt, aggregate principal amount | $ 469,000,000 | ||
Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Commitment Fee | 0.25% | ||
Letter of Credit | Two Committed Letter of Credit Facilities | |||
Debt Instrument [Line Items] | |||
Available capacity amount | $ 30,000,000 | ||
Number of term loan facilities | facility | 2 | ||
Amount available | $ 64,000,000 | ||
Undrawn letters of credit | 34,000,000 | ||
Letter of Credit | Fifty Four Million Committed Letter Of Credit Facility | |||
Debt Instrument [Line Items] | |||
Available capacity amount | 54,000,000 | ||
Letter of Credit | Ten Million Committed Facility | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity | 10,000,000 | ||
Letter of Credit | Three Unsecured Letter Of Credit Facilities | |||
Debt Instrument [Line Items] | |||
Available capacity amount | $ 55,000,000 | ||
Number of term loan facilities | facility | 3 | ||
Amount available | $ 97,000,000 | ||
Undrawn letters of credit | 42,000,000 | ||
Letter of Credit | Seventeen Million Unsecured Letter of Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity | 17,000,000 | ||
Letter of Credit | Forty Million Uncommitted Letter of Credit | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity | 40,000,000 | ||
Letter of Credit | Forty Million Unsecured Letter Of Credit Facility | |||
Debt Instrument [Line Items] | |||
Available capacity amount | $ 40,000,000 | ||
Minimum | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Commitment Fee | 0.15% | ||
Maximum | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Commitment Fee | 0.30% | ||
Term Loan A | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Debt, aggregate principal amount | $ 800,000,000 | ||
Quarterly principal payment, percentage | 1.25% | ||
Revolving Credit Facility | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Maximum Borrowing Capacity | $ 1,000,000,000 | ||
Line of credit maturity period | 5 years | ||
Available capacity amount | $ 853,000,000 | ||
Senior unsecured notes | Six hundred million senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Debt, aggregate principal amount | $ 600,000,000 | ||
Debt maturity period | 10 years | ||
Interest Rate Percentage | 4.625% | ||
LIBOR | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.75% | ||
LIBOR | Senior Secured Credit Facility - Amended | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.25% | ||
LIBOR | Senior Secured Credit Facility - Amended | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 2.00% | ||
Base Rate | Senior Secured Credit Facility - Amended | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 0.75% | ||
Base Rate | Senior Secured Credit Facility - Amended | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 0.25% | ||
Base Rate | Senior Secured Credit Facility - Amended | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.00% |
Leases Leases - Supplemental balance sheet (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Leases [Abstract] | ||
Operating lease assets | $ 292.2 | $ 0.0 |
Finance lease assets | 130.9 | |
Total lease assets | 423.1 | |
Current liabilities operating leases | 65.1 | |
Current liabilities financing leases | 25.6 | |
Noncurrent liabilities operating leases | 237.6 | $ 0.0 |
Noncurrent liabilities financing leases | 97.7 | |
Total lease liabilities | $ 426.0 |
Leases Leases - Lease cost (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Lease, Cost [Abstract] | ||
Operating lease cost | $ 24.8 | |
Short-term lease cost | 3.5 | |
Amortization of right-of-use assets | 7.7 | |
Interest on lease liabilities | 1.7 | |
Total lease cost | $ 37.7 | $ 36.6 |
Leases Leases - Other information (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 22.4 |
Operating cash flows from finance leases | 1.7 |
Financing cash flows from finance leases | 6.9 |
Leased assets obtained in exchange for new operating lease obligations | 27.1 |
Leased assets obtained in exchange for new finance lease obligations | $ 12.1 |
Weighted average remaining lease term operating leases (years) | 7 years 6 months |
Weighted average remaining lease term finance leases (years) | 5 years 2 months 12 days |
Weighted average discount rate operating leases (percent) | 6.80% |
Weighted average discount rate finance leases (percent) | 5.70% |
Leases Leases - Operating future minimum lease payments (Details) $ in Millions |
Dec. 31, 2018
USD ($)
|
---|---|
Operating Leased Assets [Line Items] | |
2019 | $ 83.0 |
2020 | 67.2 |
2021 | 51.3 |
2022 | 39.7 |
2023 | 31.8 |
Later years | 130.3 |
Future minimum payments due | 403.3 |
Facilities | |
Operating Leased Assets [Line Items] | |
2019 | 51.7 |
2020 | 46.2 |
2021 | 39.5 |
2022 | 33.8 |
2023 | 29.4 |
Later years | 130.3 |
Future minimum payments due | 330.9 |
Vehicles | |
Operating Leased Assets [Line Items] | |
2019 | 9.7 |
2020 | 5.5 |
2021 | 2.3 |
2022 | 0.6 |
2023 | 0.1 |
Later years | 0.0 |
Future minimum payments due | 18.2 |
Other | |
Operating Leased Assets [Line Items] | |
2019 | 21.6 |
2020 | 15.5 |
2021 | 9.5 |
2022 | 5.3 |
2023 | 2.3 |
Later years | 0.0 |
Future minimum payments due | $ 54.2 |
Leases Leases - Financing leases minimum repayments (Details) $ in Millions |
Dec. 31, 2018
USD ($)
|
---|---|
Leases [Abstract] | |
2019 | $ 25.1 |
2020 | 23.5 |
2021 | 21.7 |
2022 | 19.7 |
2023 | 16.2 |
Later years | 14.3 |
Total | $ 120.5 |
Share-based compensation plans - Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment expense | $ 9.4 | $ 6.8 |
Income tax benefit | (2.2) | (1.6) |
Share-based payment expense, net of tax | 7.2 | 5.2 |
Performance Shares Units PSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment expense | 5.8 | 3.9 |
Market Share Units MSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment expense | 0.0 | 0.1 |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment expense | 2.0 | 1.8 |
Deferred Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment expense | 0.3 | 0.2 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment expense | $ 1.3 | $ 0.8 |
Share-based compensation plans - Stock activity - RSU, PSU, MSU, DSU (Details) - $ / shares |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Restricted Stock Units | ||
Shares (in thousands) | ||
Nonvested, beginning balance, shares | 235,800 | |
Granted, shares | 80,400 | |
Forfeited, shares | (2,900) | |
Vested, shares | (108,000) | |
Nonvested, ending balance, shares | 205,300 | 235,800 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested, beginning balance (dollars per share) | $ 52.63 | |
Granted (dollars per share) | 77.99 | |
Forfeited (dollars per share) | 64.37 | |
Vested (dollars per share) | 45.24 | |
Nonvested, ending balance (dollars per share) | $ 66.28 | $ 52.63 |
Performance Shares Units PSU | ||
Shares (in thousands) | ||
Nonvested, beginning balance, shares | 697,300 | |
Granted, shares | 191,000 | |
Forfeited, shares | (4,000) | |
Vested, shares | (187,000) | |
Nonvested, ending balance, shares | 697,300 | 697,300 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested, beginning balance (dollars per share) | $ 47.74 | |
Granted (dollars per share) | 81.43 | |
Forfeited (dollars per share) | 63.18 | |
Vested (dollars per share) | 29.76 | |
Nonvested, ending balance (dollars per share) | $ 61.76 | $ 47.74 |
Actual shares earned and distributed (shares) | 225,900,000 | |
Deferred Stock Units | ||
Shares (in thousands) | ||
Nonvested, beginning balance, shares | 12,500 | |
Granted, shares | 0 | |
Forfeited, shares | 0 | |
Vested, shares | (700) | |
Nonvested, ending balance, shares | 11,800 | 12,500 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested, beginning balance (dollars per share) | $ 74.43 | |
Granted (dollars per share) | 0.00 | |
Forfeited (dollars per share) | 0.00 | |
Vested (dollars per share) | 74.81 | |
Nonvested, ending balance (dollars per share) | $ 74.41 | $ 74.43 |
Share-based compensation plans - Option Activity (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019
$ / shares
shares
| |
Performance-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, shares | shares | 1,287,000 |
Granted, shares | shares | 0 |
Forfeited, shares | shares | 0 |
Exercised, shares | shares | 0 |
Ending balance, shares | shares | 1,287,000 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (dollars per share) | $ / shares | $ 10.88 |
Granted (dollars per share) | $ / shares | 0.00 |
Forfeited (dollars per share) | $ / shares | 0.00 |
Exercised (dollars per share) | $ / shares | 0.00 |
Ending balance (dollars per share) | $ / shares | $ 10.88 |
Time Based Vesting Option | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, shares | shares | 2,700 |
Granted, shares | shares | 129,900 |
Forfeited, shares | shares | 0 |
Exercised, shares | shares | 0 |
Ending balance, shares | shares | 132,600 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (dollars per share) | $ / shares | $ 21.09 |
Granted (dollars per share) | $ / shares | 21.60 |
Forfeited (dollars per share) | $ / shares | 0.00 |
Exercised (dollars per share) | $ / shares | 0.00 |
Ending balance (dollars per share) | $ / shares | $ 21.59 |
Capital Stock Capital Stock (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Feb. 25, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
May 08, 2017 |
|
Subsequent Event [Line Items] | ||||
Shares of common stock authorized (in shares) | 100,000,000 | 100,000,000 | ||
Shares issued and outstanding (in shares) | 49,900,000 | 49,700,000 | ||
Maximum shares allowed for issuance (in shares) | 2,000,000 | |||
Par value (in dollars per share) | $ 10 | |||
Stock repurchase program amount | $ 200,000,000 | |||
Stock repurchase program remaining amount | $ 106,000,000 | |||
Stock repurchased and retired during period, shares | 610,177 | |||
Stock repurchase program amount used | $ 43,500,000 | |||
Average price per share (in dollars per share) | $ 71.22 | |||
ASR December 2018 | ||||
Subsequent Event [Line Items] | ||||
Accelerated share repurchased payment | $ 50,000,000 | |||
Stock repurchased and retired during period, shares | 700,000 | |||
ASR, initial price per share (in dollars per share) | $ 71.43 | |||
ASR February 2019 | ||||
Subsequent Event [Line Items] | ||||
Stock repurchased and retired during period, shares | 37,387 | |||
ASR, final price per share (in dollars per share) | $ 67.81 |
Capital Stock - Shares Used To Calculate Earnings (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Equity [Abstract] | ||
Basic (shares) | 50.0 | 50.9 |
Effect of dilutive stock options and awards (shares) | 0.9 | 1.2 |
Diluted (shares) | 50.9 | 52.1 |
Antidilutive stock options and awards excluded from denominator (shares) | 0.1 | 0.0 |
Deferred compensation common stock unit (shares) | 0.3 | 0.3 |
Supplemental cash flow information (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Interest | $ 15.3 | $ 7.5 | ||
Income taxes, net | 11.4 | 20.5 | ||
Financing Leases | 12.1 | 9.5 | ||
Restricted cash | 97.1 | $ 136.1 | ||
Cash and cash equivalents | 283.2 | 343.4 | ||
Cash, Cash Equivalents, and Restricted Cash | 380.3 | $ 721.6 | 479.5 | $ 726.9 |
Cash from Short Term Borrowings | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | 10.3 | 10.5 | ||
Cash Held From Customers | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | 51.9 | 90.3 | ||
Deposits liability | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | $ 34.9 | $ 35.3 |
Reorganization and Restructuring (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Reorganization and Restructuring 2016 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 2.7 | $ 17.3 | $ 18.1 | |
Minimum | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected costs | $ 4.0 | |||
Maximum | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected costs | 6.0 | |||
Severance Costs | Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 3.5 | $ 1.0 |
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