Segment information

9 Months Ended

Sep. 30, 2019

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:


•	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 costs (primarily third party expenses) 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 excluded from segment results. We have also excluded from our segment results net charges related to an internal loss in our U.S. global services operations. The net impact includes costs incurred to reconstruct an accounts receivable subledger as well as estimated bad debt expense for uncollectible receivables, partially offset by revenue billed and collected, but not previously recorded as a result of the former non-management employee's embezzlement activities.

The following table summarizes our revenues and segment profit for each of our reportable segments and reconciles these amounts to consolidated revenues and operating profit:



	Revenues				Operating Profit
	Three Months Ended September 30,				Three Months Ended September 30,
(In millions)	2019			2018	2019			2018
Reportable Segments:
North America	$	446.7		383.4	$	38.7		33.6
South America	229.0			215.5	59.4			46.3
Rest of World	248.9			253.5	32.2			30.8
Total reportable segments	924.6			852.4	130.3			110.7

Reconciling Items:
Corporate expenses:
General, administrative and other expenses	—			—	(26.2		)	(20.6	)
Foreign currency transaction gains (losses)	—			—	(0.4		)	0.4
Reconciliation of segment policies to GAAP	—			—	(1.3		)	4.8
Other items not allocated to segments:
Reorganization and Restructuring	—			—	(6.4		)	(7.3	)
Acquisitions and dispositions	(0.2		)	—	(24.0		)	(10.7	)
Argentina highly inflationary impact	—			—	(7.9		)	(8.3	)
Internal loss^(a)	4.0			—	(11.3		)	—
Reporting compliance^(b)	—			—	(0.3		)	(2.0	)
Total	$	928.4		852.4	$	52.5		67.0


(a)	See details regarding the impact of the Internal loss at Note 1.


(b)	Costs (primarily third party expenses) related to accounting standard implementation and material weakness mitigation. Additional information provided at page 45.



	Revenues				Operating Profit
	Nine Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2019			2018	2019			2018
Reportable Segments:
North America	$	1,323.7		1,027.5	$	129.1		80.3
South America	684.5			703.6	147.4			148.0
Rest of World	735.7			798.7	82.2			82.6
Total reportable segments	2,743.9			2,529.8	358.7			310.9

Reconciling Items:
Corporate expenses:
General, administrative and other expenses	—			—	(85.8		)	(72.6	)
Foreign currency transaction gains (losses)	—			—	0.2			(1.8	)
Reconciliation of segment policies to GAAP	—			—	2.9			6.5
Other items not allocated to segments:
Venezuela operations	—			51.4	—			2.3
Reorganization and Restructuring	—			—	(20.5		)	(15.5	)
Acquisitions and dispositions	(0.5		)	—	(63.8		)	(24.6	)
Argentina highly inflationary impact	—			—	(12.3		)	(8.3	)
Internal loss^(a)	4.0			—	(13.9		)	—
Reporting compliance^(b)	—			—	(2.0		)	(3.4	)
Total	$	2,747.4		2,581.2	$	163.5		193.5


(a)	See details regarding the impact of the Internal loss at Note 1.

(b)

Costs (primarily third party expenses) related to accounting standard implementation and material weakness mitigation. Additional information provided at page 45.