THE BRINK’S COMPANY | ||
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
(In millions, except for per share amounts) | June 30, 2020 | December 31, 2019 | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | |||||
Restricted cash | ||||||
Accounts receivable, net | ||||||
Prepaid expenses and other | ||||||
Total current assets | ||||||
Right-of-use assets, net | ||||||
Property and equipment, net | ||||||
Goodwill | ||||||
Other intangibles | ||||||
Deferred income taxes | ||||||
Other | ||||||
Total assets | $ | |||||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Short-term borrowings | $ | |||||
Current maturities of long-term debt | ||||||
Accounts payable | ||||||
Accrued liabilities | ||||||
Restricted cash held for customers | ||||||
Total current liabilities | ||||||
Long-term debt | ||||||
Accrued pension costs | ||||||
Retirement benefits other than pensions | ||||||
Lease liabilities | ||||||
Deferred income taxes | ||||||
Other | ||||||
Total liabilities | ||||||
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: 2020 - 50.5; 2019 - 50.1 | ||||||
Capital in excess of par value | ||||||
Retained earnings | ||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||
Brink’s shareholders | ||||||
Noncontrolling interests | ||||||
Total equity | ||||||
Total liabilities and equity | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions, except for per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||
Revenues | $ | $ | |||||||||||
Costs and expenses: | |||||||||||||
Cost of revenues | |||||||||||||
Selling, general and administrative expenses | |||||||||||||
Total costs and expenses | |||||||||||||
Other operating income (expense) | ( | ) | ( | ) | ( | ) | |||||||
Operating profit (loss) | ( | ) | |||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Interest and other nonoperating income (expense) | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Income (loss) from continuing operations before tax | ( | ) | ( | ) | |||||||||
Provision (benefit) for income taxes | ( | ) | ( | ) | |||||||||
Income from continuing operations | |||||||||||||
Loss from discontinued operations, net of tax | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Net income | |||||||||||||
Less net income attributable to noncontrolling interests | |||||||||||||
Net income attributable to Brink’s | |||||||||||||
Amounts attributable to Brink’s | |||||||||||||
Continuing operations | |||||||||||||
Discontinued operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Net income attributable to Brink’s | $ | $ | |||||||||||
Income (loss) per share attributable to Brink’s common shareholders(a): | |||||||||||||
Basic: | |||||||||||||
Continuing operations | $ | $ | |||||||||||
Discontinued operations | ( | ) | ( | ) | |||||||||
Net income | $ | $ | |||||||||||
Diluted: | |||||||||||||
Continuing operations | $ | $ | |||||||||||
Discontinued operations | ( | ) | ( | ) | |||||||||
Net income | $ | $ | |||||||||||
Weighted-average shares | |||||||||||||
Basic | |||||||||||||
Diluted | |||||||||||||
Cash dividends paid per common share | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Net income | $ | $ | |||||||||||
Benefit plan adjustments: | |||||||||||||
Benefit plan actuarial gains | |||||||||||||
Benefit plan prior service costs | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Deferred profit sharing | |||||||||||||
Total benefit plan adjustments | |||||||||||||
Foreign currency translation adjustments | ( | ) | |||||||||||
Losses on cash flow hedges | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Other comprehensive income (loss) before tax | ( | ) | |||||||||||
Provision (benefit) for income taxes | ( | ) | ( | ) | |||||||||
Other comprehensive income (loss) | ( | ) | |||||||||||
Comprehensive income (loss) | ( | ) | |||||||||||
Less comprehensive income attributable to noncontrolling interests | |||||||||||||
Comprehensive income (loss) attributable to Brink's | $ | $ | ( | ) |
Six Months ended June 30, 2020 | |||||||||||||||||||||
(In millions) | Shares | Common Stock | Capital in Excess of Par Value | Retained Earnings | AOCI* | Noncontrolling Interests | Total | ||||||||||||||
Balance as of December 31, 2019 | $ | ( | ) | ||||||||||||||||||
Cumulative effect of change in accounting principle(a) | — | — | — | ( | ) | — | ( | ) | |||||||||||||
Net income | — | — | — | — | |||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||
Dividends to: | |||||||||||||||||||||
Brink’s common shareholders ($0.15 per share) | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||
Noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||
Share-based compensation: | |||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||
Compensation expense | — | — | — | — | — | ||||||||||||||||
Other share-based benefit transactions | ( | ) | ( | ) | — | — | ( | ) | |||||||||||||
Balance as of March 31, 2020 | $ | ( | ) | ||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||
Dividends to: | |||||||||||||||||||||
Brink’s common shareholders ($0.15 per share) | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||
Noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||
Share-based compensation: | |||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||
Compensation expense | — | — | — | — | — | ||||||||||||||||
Other share-based benefit transactions | — | — | — | ||||||||||||||||||
Acquisitions with noncontrolling interests | — | — | — | — | — | ||||||||||||||||
Balance as of June 30, 2020 | $ | ( | ) |
(a) | Effective January 1, 2020, we adopted the provisions of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. We recognized a cumulative effect adjustment to January 1, 2020 retained earnings as a result of adopting this standard. See Note 1 for further details. |
Six Months ended June 30, 2019 | |||||||||||||||||||||
(In millions) | Shares | Common Stock | Capital in Excess of Par Value | Retained Earnings | AOCI* | Noncontrolling Interests | Total | ||||||||||||||
Balance as of December 31, 2018 | $ | ( | ) | ||||||||||||||||||
Cumulative effect of change in accounting principle(a) | — | — | — | ( | ) | — | |||||||||||||||
Net income | — | — | — | — | |||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||
Shares repurchased | — | — | ( | ) | — | — | |||||||||||||||
Dividends to: | |||||||||||||||||||||
Brink’s common shareholders ($0.15 per share) | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||
Share-based compensation: | |||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||
Compensation expense | — | — | — | — | — | ||||||||||||||||
Other share-based benefit transactions | ( | ) | — | — | — | ( | ) | ||||||||||||||
Balance as of March 31, 2019 | $ | ( | ) | ||||||||||||||||||
Net income (loss) | — | — | — | — | |||||||||||||||||
Other comprehensive loss | — | — | — | — | |||||||||||||||||
Dividends to: | |||||||||||||||||||||
Brink’s common shareholders ($0.15 per share) | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||
Noncontrolling interests | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||
Share-based compensation: | |||||||||||||||||||||
Stock awards and options: | |||||||||||||||||||||
Compensation expense | — | — | — | — | — | ||||||||||||||||
Other share-based benefit transactions | — | — | — | ||||||||||||||||||
Capital contributions from noncontrolling interest | — | — | — | — | — | ||||||||||||||||
Balance as of June 30, 2019 | $ | ( | ) |
(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. |
Six Months Ended June 30, | ||||||
(In millions) | 2020 | 2019 | ||||
Cash flows from operating activities: | ||||||
Net income | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Loss from discontinued operations, net of tax | ||||||
Depreciation and amortization | ||||||
Share-based compensation expense | ||||||
Deferred income taxes | ( | ) | ||||
Gains on sale of property, equipment and marketable securities | ( | ) | ( | ) | ||
Gains on business dispositions | ( | ) | ||||
Impairment losses | ||||||
Retirement benefit funding less than expense: | ||||||
Pension | ||||||
Other than pension | ||||||
Remeasurement losses due to Argentina currency devaluations | ||||||
Other operating | ( | ) | ||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||
Accounts receivable and income taxes receivable | ( | ) | ( | ) | ||
Accounts payable, income taxes payable and accrued liabilities | ( | ) | ( | ) | ||
Restricted cash held for customers | ( | ) | ||||
Customer obligations | ( | ) | ||||
Prepaid and other current assets | ( | ) | ( | ) | ||
Other | ( | ) | ( | ) | ||
Net cash provided (used) by operating activities | ( | ) | ||||
Cash flows from investing activities: | ||||||
Capital expenditures | ( | ) | ( | ) | ||
Acquisitions, net of cash acquired | ( | ) | ( | ) | ||
Dispositions, net of cash disposed | ( | ) | ||||
Marketable securities: | ||||||
Purchases | ( | ) | ( | ) | ||
Sales | ||||||
Cash proceeds from sale of property and equipment | ||||||
Acquisition of customer contracts | ( | ) | ( | ) | ||
Net cash used by investing activities | ( | ) | ( | ) | ||
Cash flows from financing activities: | ||||||
Borrowings (repayments) of debt: | ||||||
Short-term borrowings | ( | ) | ||||
Long-term revolving credit facilities: | ||||||
Borrowings | ||||||
Repayments | ( | ) | ( | ) | ||
Other long-term debt: | ||||||
Borrowings | ||||||
Repayments | ( | ) | ( | ) | ||
Payment of acquisition-related obligation | ( | ) | ( | ) | ||
Debt financing costs | ( | ) | ( | ) | ||
Dividends to: | ||||||
Shareholders of Brink’s | ( | ) | ( | ) | ||
Noncontrolling interests in subsidiaries | ( | ) | ( | ) | ||
Tax withholdings associated with share-based compensation | ( | ) | ( | ) | ||
Other | ( | ) | ||||
Net cash provided by financing activities | ||||||
Effect of exchange rate changes on cash | ( | ) | ||||
Cash, cash equivalents and restricted cash: | ||||||
Increase (decrease) | ( | ) | ||||
Balance at beginning of period | ||||||
Balance at end of period | $ |
• | North America |
• | South America |
• | Rest of World |
(In millions) | Core Services | High-Value Services | Other Security Services | Total | ||||||||
Three months ended June 30, 2020 | ||||||||||||
Reportable Segments: | ||||||||||||
North America | $ | |||||||||||
South America | ||||||||||||
Rest of World | ||||||||||||
Total reportable segments | ||||||||||||
Three months ended June 30, 2019 | ||||||||||||
Reportable Segments: | ||||||||||||
North America | $ | |||||||||||
South America | ||||||||||||
Rest of World | ||||||||||||
Total reportable segments | ||||||||||||
Not Allocated to Segments: | ||||||||||||
Acquisitions and dispositions | ( | ) | ( | ) | ||||||||
Total | $ | |||||||||||
Six months ended June 30, 2020 | ||||||||||||
Reportable Segments: | ||||||||||||
North America | $ | |||||||||||
South America | ||||||||||||
Rest of World | ||||||||||||
Total reportable segments | ||||||||||||
Six months ended June 30, 2019 | ||||||||||||
Reportable Segments: | ||||||||||||
North America | $ | |||||||||||
South America | ||||||||||||
Rest of World | ||||||||||||
Total reportable segments | ||||||||||||
Not Allocated to Segments: | ||||||||||||
Acquisitions and dispositions | ( | ) | ( | ) | ||||||||
Total | $ |
(In millions) | Receivables | Contract Asset | Contract Liability | ||||||
Opening (January 1, 2020) | $ | ||||||||
Closing (June 30, 2020) | |||||||||
Increase (decrease) | $ | ( | ) | ( | ) |
• | 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. We also exclude certain costs, gains and losses related to acquisitions and dispositions of assets and of businesses. Brink's Argentina is consolidated 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 of the internal loss 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. |
Revenues | Operating Profit | ||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Reportable Segments: | |||||||||||||
North America | $ | $ | |||||||||||
South America | |||||||||||||
Rest of World | |||||||||||||
Total reportable segments | |||||||||||||
Reconciling Items: | |||||||||||||
Corporate expenses: | |||||||||||||
General, administrative and other expenses | — | — | ( | ) | ( | ) | |||||||
Foreign currency transaction gains (losses) | — | — | ( | ) | ( | ) | |||||||
Reconciliation of segment policies to GAAP(a) | — | — | |||||||||||
Other items not allocated to segments: | |||||||||||||
Reorganization and Restructuring | — | — | ( | ) | ( | ) | |||||||
Acquisitions and dispositions | ( | ) | ( | ) | ( | ) | |||||||
Argentina highly inflationary impact | — | — | ( | ) | ( | ) | |||||||
Internal loss(b) | ( | ) | ( | ) | |||||||||
Reporting compliance(c) | — | — | ( | ) | ( | ) | |||||||
Total | $ | $ | ( | ) |
(a) | This line item includes an adjustment to bad debt expense reported by the segments to the estimated consolidated amount required by U.S. GAAP. This line item also includes an adjustment to expense recognized by our Mexican subsidiaries for an annual profit sharing incentive based on local taxable income. U.S. GAAP requires that this plan should be accounted for similar to income tax expense on an interim reporting basis. |
(b) | See details regarding the impact of the Internal Loss at Note 1. |
(c) | Costs (primarily third party expenses) related to accounting standard implementation. Additional information provided at page 45. |
Revenues | Operating Profit | ||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Reportable Segments: | |||||||||||||
North America | $ | $ | |||||||||||
South America | |||||||||||||
Rest of World | |||||||||||||
Total reportable segments | |||||||||||||
Reconciling Items: | |||||||||||||
Corporate expenses: | |||||||||||||
General, administrative and other expenses | — | — | ( | ) | ( | ) | |||||||
Foreign currency transaction gains (losses) | — | — | ( | ) | |||||||||
Reconciliation of segment policies to GAAP(a) | — | — | |||||||||||
Other items not allocated to segments: | |||||||||||||
Reorganization and Restructuring | — | — | ( | ) | ( | ) | |||||||
Acquisitions and dispositions | ( | ) | ( | ) | ( | ) | |||||||
Argentina highly inflationary impact | — | — | ( | ) | ( | ) | |||||||
Internal loss(b) | ( | ) | ( | ) | |||||||||
Reporting compliance(c) | — | — | ( | ) | ( | ) | |||||||
Total | $ | $ |
(a) | This line item includes an adjustment to bad debt expense reported by the segments to the estimated consolidated amount required by U.S. GAAP. This line item also includes an adjustment to expense recognized by our Mexican subsidiaries for an annual profit sharing incentive based on local taxable income. U.S. GAAP requires that this plan should be accounted for similar to income tax expense on an interim reporting basis. |
(b) | See details regarding the impact of the Internal Loss at Note 1. |
(c) | Costs (primarily third party expenses) related to accounting standard implementation. Additional information provided at page 45. |
June 30, | December 31, | |||||
(in millions) | 2020 | 2019 | ||||
Assets held by Reportable Segment | ||||||
North America | $ | |||||
South America | ||||||
Rest of World | ||||||
Total reportable segments | ||||||
Corporate items | ||||||
Total | $ |
U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Three months ended June 30, | ||||||||||||||||||
Service cost | $ | |||||||||||||||||
Interest cost on projected benefit obligation | ||||||||||||||||||
Return on assets – expected | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||
Amortization of losses | ||||||||||||||||||
Amortization of prior service credit | ||||||||||||||||||
Settlement loss | ||||||||||||||||||
Net periodic pension cost | $ | |||||||||||||||||
Six months ended June 30, | ||||||||||||||||||
Service cost | $ | |||||||||||||||||
Interest cost on projected benefit obligation | ||||||||||||||||||
Return on assets – expected | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||
Amortization of losses | ||||||||||||||||||
Amortization of prior service cost | ||||||||||||||||||
Settlement loss | ||||||||||||||||||
Net periodic pension cost | $ |
UMWA Plans | Black Lung and Other Plans | Total | ||||||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Three months ended June 30, | ||||||||||||||||||
Service cost | $ | — | — | |||||||||||||||
Interest cost on accumulated postretirement benefit obligations | ||||||||||||||||||
Return on assets – expected | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
Amortization of losses | ||||||||||||||||||
Amortization of prior service (credit) cost | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||
Net periodic postretirement cost | $ | |||||||||||||||||
Six months ended June 30, | ||||||||||||||||||
Service cost | $ | |||||||||||||||||
Interest cost on accumulated postretirement benefit obligations | ||||||||||||||||||
Return on assets – expected | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
Amortization of losses | ||||||||||||||||||
Amortization of prior service credit | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||
Net periodic postretirement cost | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
Continuing operations | |||||||||||||
Provision (benefit) for income taxes (in millions) | $ | ( | ) | $ | ( | ) | |||||||
Effective tax rate | % | % | % | % |
(In millions) | Estimated Fair Value at Acquisition Date | ||
Fair value of purchase consideration | |||
Cash paid through June 30, 2020 | $ | ||
Contingent consideration | |||
Liabilities assumed from seller | |||
Receivable from seller | ( | ) | |
Fair value of purchase consideration | $ | ||
Fair value of net assets acquired | |||
Cash | $ | ||
Restricted cash | |||
Accounts receivable | |||
Other current assets | |||
Property and equipment, net | |||
Right-of-use assets, net | |||
Intangible assets(a) | |||
Goodwill(b) | |||
Other noncurrent assets | |||
Current liabilities | ( | ) | |
Lease liabilities | ( | ) | |
Other noncurrent liabilities | ( | ) | |
Fair value of net assets acquired | $ | ||
Less: Fair value of noncontrolling interest | ( | ) | |
Fair value of purchase consideration | $ |
(a) | Intangible assets are composed of customer relationships ($ |
(b) | Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating G4S operations with our existing operations. Goodwill has been provisionally assigned to the Global Markets-EMEA reporting unit ($ |
(In millions) | Fair Value at Acquisition Date | ||
Fair value of purchase consideration | |||
Cash paid through June 30, 2020 | $ | ||
Indemnification asset | ( | ) | |
Fair value of purchase consideration | $ | ||
Fair value of net assets acquired | |||
Cash | $ | ||
Accounts receivable | |||
Other current assets | |||
Property and equipment, net | |||
Intangible assets(a) | |||
Goodwill(b) | |||
Other noncurrent assets | |||
Current liabilities | ( | ) | |
Noncurrent liabilities | ( | ) | |
Fair value of net assets acquired | $ |
(a) | Intangible assets are composed of customer relationships ($ |
(b) | 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 June 30, 2020 | $ | ||
Contingent consideration | |||
Indemnification asset | ( | ) | |
Fair value of purchase consideration | $ | ||
Fair value of net assets acquired | |||
Cash | $ | ||
Accounts receivable | |||
Property and equipment, net | |||
Intangible assets(a) | |||
Goodwill(b) | |||
Other current and noncurrent assets | |||
Current liabilities | ( | ) | |
Noncurrent liabilities | ( | ) | |
Fair value of net assets acquired | $ |
(a) | Intangible assets are composed of developed technology, customer relationships and trade names. |
(b) | Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating these acquired operations into our existing operations. The goodwill from these acquisitions have been assigned to the following reporting units: BI (U.S.), COMEF (Brazil) and TVS (Global Markets - South America). We expect goodwill related to BI to be deductible for tax purposes. We do not expect goodwill related to COMEF or TVS to be deductible for tax purposes. |
(In millions) | Revenue | Net income (loss) attributable to Brink's | ||||
Three months ended June 30, 2020 | ||||||
G4S | $ | |||||
Total | $ | |||||
Six months ended June 30, 2020 | ||||||
G4S | $ | |||||
Total | $ |
(In millions) | Revenue | Net income (loss) attributable to Brink's | ||||
Pro forma results of Brink's for the three months ended June 30, | ||||||
2020 | ||||||
Brink's as reported | $ | |||||
G4S(a) | ( | ) | ||||
Total | $ | |||||
2019 | ||||||
Brink's as reported | $ | |||||
G4S(a) | ||||||
Other acquisitions(a) | ||||||
Total | $ | |||||
Pro forma results of Brink's for the six months ended June 30, | ||||||
2020 | ||||||
Brink's as reported | $ | |||||
G4S(a) | ( | ) | ||||
Total | $ | |||||
2019 | ||||||
Brink's as reported | $ | |||||
G4S(a) | ||||||
Rodoban(a) | ||||||
Other 2019 acquisitions(a) | ||||||
Total | $ |
(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 June 30, 2020 | |||||||||||||||
Amounts attributable to Brink's: | |||||||||||||||
Benefit plan adjustments | $ | ( | ) | ( | ) | ||||||||||
Foreign currency translation adjustments(b) | |||||||||||||||
Gains (losses) on cash flow hedges | ( | ) | ( | ) | ( | ) | |||||||||
( | ) | ||||||||||||||
Amounts attributable to noncontrolling interests: | |||||||||||||||
Foreign currency translation adjustments | |||||||||||||||
Total | |||||||||||||||
Benefit plan adjustments(a) | ( | ) | ( | ) | |||||||||||
Foreign currency translation adjustments(b) | |||||||||||||||
Gains (losses) on cash flow hedges(c) | ( | ) | ( | ) | ( | ) | |||||||||
$ | ( | ) | |||||||||||||
Three months ended June 30, 2019 | |||||||||||||||
Amounts attributable to Brink's: | |||||||||||||||
Benefit plan adjustments | $ | ( | ) | ( | ) | ||||||||||
Foreign currency translation adjustments | |||||||||||||||
Gains (losses) on cash flow hedges | ( | ) | ( | ) | ( | ) | |||||||||
( | ) | ( | ) | ||||||||||||
Amounts attributable to noncontrolling interests: | |||||||||||||||
Foreign currency translation adjustments | |||||||||||||||
Total | |||||||||||||||
Benefit plan adjustments(a) | ( | ) | ( | ) | |||||||||||
Foreign currency translation adjustments | |||||||||||||||
Gains (losses) on cash flow hedges(c) | ( | ) | ( | ) | ( | ) | |||||||||
$ | ( | ) | ( | ) |
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) | ||||||||||
Six months ended June 30, 2020 | |||||||||||||||
Amounts attributable to Brink's: | |||||||||||||||
Benefit plan adjustments | $ | ( | ) | ||||||||||||
Foreign currency translation adjustments(b) | ( | ) | ( | ) | |||||||||||
Gains (losses) on cash flow hedges | ( | ) | ( | ) | ( | ) | |||||||||
( | ) | ( | ) | ( | ) | ||||||||||
Amounts attributable to noncontrolling interests: | |||||||||||||||
Foreign currency translation adjustments | |||||||||||||||
Total | |||||||||||||||
Benefit plan adjustments(a) | ( | ) | |||||||||||||
Foreign currency translation adjustments(b) | ( | ) | ( | ) | |||||||||||
Gains (losses) on cash flow hedges(c) | ( | ) | ( | ) | ( | ) | |||||||||
$ | ( | ) | ( | ) | ( | ) | |||||||||
Six months ended June 30, 2019 | |||||||||||||||
Amounts attributable to Brink's: | |||||||||||||||
Benefit plan adjustments | $ | ( | ) | ( | ) | ||||||||||
Foreign currency translation adjustments | |||||||||||||||
Gains (losses) on cash flow hedges | ( | ) | ( | ) | ( | ) | |||||||||
( | ) | ( | ) | ||||||||||||
Amounts attributable to noncontrolling interests: | |||||||||||||||
Foreign currency translation adjustments | |||||||||||||||
Total | |||||||||||||||
Benefit plan adjustments(a) | ( | ) | ( | ) | |||||||||||
Foreign currency translation adjustments | |||||||||||||||
Gains (losses) on cash flow hedges(c) | ( | ) | ( | ) | ( | ) | |||||||||
$ | ( | ) | ( | ) |
(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 June 30, | Six Months Ended June 30, | ||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Total net periodic retirement benefit cost included in: | |||||||||||||
Cost of revenues | $ | $ | |||||||||||
Selling, general and administrative expenses | |||||||||||||
Interest and other nonoperating income (expense) |
(b) | 2020 foreign currency translation adjustment amounts arising during the current period reflect primarily the Mexican peso, Brazilian real and the Argentine peso. |
(c) | Pretax gains and losses on cash flow hedges are classified in the condensed consolidated statements of operations as: |
• | other operating income (expense) ($ |
• | interest expense ($ |
(In millions) | Benefit Plan Adjustments | Foreign Currency Translation Adjustments | Gains (Losses) on Cash Flow Hedges | Total | ||||||||
Balance as of December 31, 2019 | $ | ( | ) | ( | ) | ( | ) | ( | ) | |||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss to net income | ( | ) | ||||||||||
Other comprehensive income (loss) attributable to Brink's | ( | ) | ( | ) | ( | ) | ||||||
Balance as of June 30, 2020 | $ | ( | ) | ( | ) | ( | ) | ( | ) |
(In millions) | June 30, 2020 | December 31, 2019 | ||||
$600 million Senior unsecured notes | ||||||
Carrying value | $ | |||||
Fair value | ||||||
$400 million Senior unsecured notes | ||||||
Carrying value | ||||||
Fair value |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Derivative instrument gains (losses) included in other operating income (expense) | $ | ( | ) | $ | |||||||||
Derivative instrument gains (losses) included in other nonoperating income (expense)(a) | ( | ) | — | ( | ) | — |
(a) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Derivative instrument gains (losses) included in other operating income (expense) | $ | ( | ) | $ | |||||||||
Offsetting transaction gains (losses) | ( | ) | ( | ) | ( | ) | |||||||
Derivative instrument gains (losses) included in interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Net gain (loss) on derivative instrument | ( | ) | ( | ) |
(In millions) | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | ||||
Derivative instrument losses included in interest expense | $ |
June 30, | December 31, | |||||
(In millions) | 2020 | 2019 | ||||
Debt: | ||||||
Short-term borrowings | ||||||
Restricted cash borrowings(a) | $ | |||||
Other | ||||||
Total short-term borrowings | $ | |||||
Long-term debt | ||||||
Bank credit facilities: | ||||||
Term loan A(b) | $ | |||||
Senior unsecured notes(c) | ||||||
Revolving Credit Facility | ||||||
Other | ||||||
Financing leases | ||||||
Total long-term debt | $ | |||||
Total debt | $ | |||||
Included in: | ||||||
Current liabilities | $ | |||||
Noncurrent liabilities | ||||||
Total debt | $ |
(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 13 for more details. |
(b) | Amounts outstanding are net of unamortized debt costs of $ |
(c) | Amounts outstanding are net of unamortized debt costs of $ |
(In millions) | |||
December 31, 2019 | $ | ||
Cumulative effect of change in accounting principle | |||
Provision for uncollectible accounts receivable(a) | |||
Write-offs less recoveries | ( | ) | |
Foreign currency exchange effects | ( | ) | |
June 30, 2020 | $ |
(a) |
Compensation Expense | Compensation Expense | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Performance share units | $ | $ | |||||||||||
Restricted stock units | |||||||||||||
Deferred stock units and fees paid in stock | |||||||||||||
Performance-based stock options | |||||||||||||
Time-based vesting stock options | |||||||||||||
Cash based awards | |||||||||||||
Share-based payment expense | |||||||||||||
Income tax benefit | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Share-based payment expense, net of tax | $ | $ |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Outstanding balance as of December 31, 2019 | $ | |||||
Granted | ||||||
Forfeited | ||||||
Exercised | ||||||
Outstanding balance as of June 30, 2020 | $ |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Outstanding balance as of December 31, 2019 | $ | |||||
Granted | ||||||
Forfeited | ||||||
Exercised | ||||||
Outstanding balance as of June 30, 2020 | $ |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Nonvested balance as of December 31, 2019 | $ | |||||
Granted | ||||||
Forfeited | ( | ) | ||||
Conversion to cash settled awards(a) | ( | ) | ||||
Vested | ( | ) | ||||
Nonvested balance as of June 30, 2020 | $ |
(a) | Certain RSUs were modified in the first quarter of 2020 to change the awards' classification from share-settled to cash-settled. The weighted-average grant date fair value per share shown above is the removal of the original fair value. |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Nonvested balance as of December 31, 2019 | $ | |||||
Granted | ||||||
Forfeited | ( | ) | ||||
Conversion to cash settled awards(a) | ( | ) | ||||
Vested(b) | ( | ) | ||||
Nonvested balance as of June 30, 2020 | $ |
(a) | Certain IM PSUs were modified in the first quarter of 2020 to change the awards' classification from share-settled to cash-settled. The weighted-average grant date fair value per share shown above is the removal of the original fair value. |
(b) |
Shares (in thousands) | Weighted-Average Grant-Date Fair Value | |||||
Nonvested balance as of December 31, 2019 | $ | |||||
Granted | ||||||
Vested | ( | ) | ||||
Nonvested balance as of June 30, 2020 | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||
Weighted-average shares: | |||||||||||
Basic(a) | |||||||||||
Effect of dilutive stock awards and options | |||||||||||
Diluted | |||||||||||
Antidilutive stock awards and options excluded from denominator |
(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 containing only a service requirement 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 |
Six Months Ended June 30, | ||||||
(In millions) | 2020 | 2019 | ||||
Cash paid for: | ||||||
Interest | $ | |||||
Income taxes, net |
June 30, | December 31, | |||||
(In millions) | 2020 | 2019 | ||||
Cash and cash equivalents | $ | |||||
Restricted cash | ||||||
Total, cash, cash equivalents, and restricted cash in the condensed consolidated statements of cash flows | $ |
(In millions) | Severance Costs | Other | Total | ||||||
Balance as of January 1, 2020 | $ | ||||||||
Expense | |||||||||
Payments and utilization | ( | ) | ( | ) | ( | ) | |||
Foreign currency exchange effects | ( | ) | ( | ) | |||||
Balance as of June 30, 2020 | $ |
• | 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 |
• | Protecting our people and providing essential services to our customers; |
• | Preserving cash and optimizing profitability; and |
• | Positioning Brink’s to be stronger on the other side of the crisis. |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | |||||||||||||||
(In millions, except for per share amounts) | 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||
GAAP | ||||||||||||||||||
Revenues | $ | 826.0 | 914.0 | (10 | ) | 1,698.8 | 1,819.0 | (7 | ) | |||||||||
Cost of revenues | 683.9 | 708.5 | (3 | ) | 1,377.3 | 1,411.2 | (2 | ) | ||||||||||
Selling, general and administrative expenses | 139.6 | 154.6 | (10 | ) | 287.7 | 296.3 | (3 | ) | ||||||||||
Operating profit (loss) | (1.0 | ) | 52.6 | unfav | 25.2 | 111.0 | (77 | ) | ||||||||||
Income from continuing operations(a) | 13.7 | 12.6 | 9 | 15.5 | 26.3 | (41 | ) | |||||||||||
Diluted EPS from continuing operations(a) | $ | 0.27 | 0.25 | 8 | 0.30 | 0.52 | (42 | ) | ||||||||||
Non-GAAP(b) | ||||||||||||||||||
Non-GAAP revenues | $ | 826.0 | 914.3 | (10 | ) | 1,698.8 | 1,819.3 | (7 | ) | |||||||||
Non-GAAP operating profit | 73.2 | 88.8 | (18 | ) | 136.3 | 173.6 | (21 | ) | ||||||||||
Non-GAAP income from continuing operations(a) | 34.1 | 43.9 | (22 | ) | 57.7 | 84.9 | (32 | ) | ||||||||||
Non-GAAP diluted EPS from continuing operations(a) | $ | 0.67 | 0.86 | (22 | ) | 1.13 | 1.67 | (32 | ) |
(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 50–52. |
• | unfavorable changes in currency exchange rates ($13.2 million) driven by the Argentine peso and Brazilian real |
• | the following items included in “Other items not allocated to segments”: |
◦ | higher charges incurred, primarily related to an increase in reorganization and restructuring charges ($28.4 million), |
◦ | higher costs related to business acquisitions and dispositions ($9.5 million), primarily from the impact of acquisition-related charges and intangible asset amortization in the second quarter of 2020 |
• | organic decreases in North America ($26.9 million) and Rest of World ($9.6 million), |
• | lower corporate expenses ($20.1 million on an organic basis), and |
• | the favorable operating impact of business acquisitions and dispositions ($18.6 million), excluding intangible amortization and acquisition-related charges. |
• | unfavorable changes in currency exchange rates ($28.3 million) driven by the Argentine peso and Brazilian real and higher foreign currency transaction losses, |
• | the following items included in “Other items not allocated to segments”: |
◦ | higher charges incurred related to an increase in reorganization and restructuring charges ($30.5 million), and higher charges incurred, primarily bad debt expense, related to an internal loss in the U.S. global services operations ($8.2 million), |
◦ | higher costs related to business acquisitions and dispositions ($11.2 million), primarily from the impact of acquisition-related charges and intangible asset amortization in the first half of 2020 |
• | organic decreases in North America ($37.5 million) and Rest of World ($18.1 million), |
• | lower corporate expenses ($23.3 million on an organic basis), |
• | the favorable operating impact of business acquisitions and dispositions ($19.3 million), excluding intangible amortization and acquisition-related charges, and |
• | an organic increase in South America ($11.9 million). |
• | unfavorable changes in currency exchange rates ($18.1 million) driven by the Argentine peso and Brazilian real, and |
• | organic decreases in North America ($26.9 million) and Rest of World ($9.6 million), |
• | lower corporate expenses ($20.1 million on an organic basis), and |
• | the favorable operating impact of business acquisitions and dispositions ($18.6 million), excluding intangible amortization and acquisition-related charges. |
• | unfavorable changes in currency exchange rates ($36.2 million) driven by the Argentine peso and Brazilian real and higher foreign currency transaction losses, and |
• | organic decreases in North America ($37.5 million) and Rest of World ($18.1 million), |
• | lower corporate expenses ($23.3 million on an organic basis), |
• | the favorable operating impact of business acquisitions and dispositions ($19.3 million), excluding intangible amortization and acquisition-related charges, and |
• | an organic increase in South America ($11.9 million). |
Organic | Acquisitions / | % Change | |||||||||||||||||||
(In millions) | 2Q'19 | Change | Dispositions(a) | Currency(b) | 2Q'20 | Total | Organic | ||||||||||||||
Revenues: | |||||||||||||||||||||
North America | $ | 442.5 | (82.1 | ) | 6.0 | (17.3 | ) | 349.1 | (21 | ) | (19 | ) | |||||||||
South America | 225.2 | (17.1 | ) | 6.5 | (55.7 | ) | 158.9 | (29 | ) | (8 | ) | ||||||||||
Rest of World | 246.6 | (52.6 | ) | 136.7 | (12.7 | ) | 318.0 | 29 | (21 | ) | |||||||||||
Segment revenues(e) | 914.3 | (151.8 | ) | 149.2 | (85.7 | ) | 826.0 | (10 | ) | (17 | ) | ||||||||||
Other items not allocated to segments(d) | (0.3 | ) | — | 0.3 | — | — | (100 | ) | — | ||||||||||||
Revenues - GAAP | $ | 914.0 | (151.8 | ) | 149.5 | (85.7 | ) | 826.0 | (10 | ) | (17 | ) | |||||||||
Operating profit: | |||||||||||||||||||||
North America | $ | 46.4 | (26.9 | ) | 0.4 | (2.0 | ) | 17.9 | (61 | ) | (58 | ) | |||||||||
South America | 45.0 | 0.3 | 1.1 | (13.3 | ) | 33.1 | (26 | ) | 1 | ||||||||||||
Rest of World | 26.2 | (9.6 | ) | 17.1 | (2.3 | ) | 31.4 | 20 | (37 | ) | |||||||||||
Segment operating profit | 117.6 | (36.2 | ) | 18.6 | (17.6 | ) | 82.4 | (30 | ) | (31 | ) | ||||||||||
Corporate(c) | (28.8 | ) | 20.1 | — | (0.5 | ) | (9.2 | ) | (68 | ) | (70 | ) | |||||||||
Operating profit - non-GAAP | 88.8 | (16.1 | ) | 18.6 | (18.1 | ) | 73.2 | (18 | ) | (18 | ) | ||||||||||
Other items not allocated to segments(d) | (36.2 | ) | (33.4 | ) | (9.5 | ) | 4.9 | (74.2 | ) | unfav | 92 | ||||||||||
Operating profit - GAAP | $ | 52.6 | (49.5 | ) | 9.1 | (13.2 | ) | (1.0 | ) | unfav | (94 | ) |
(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 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 44–45 for more information. |
(e) | Segment revenues equal our total reported non-GAAP revenues. |
Organic | Acquisitions / | % Change | |||||||||||||||||||
(In millions) | YTD '19 | Change | Dispositions(a) | Currency(b) | YTD '20 | Total | Organic | ||||||||||||||
Revenues: | |||||||||||||||||||||
North America | $ | 877.0 | (73.6 | ) | 11.0 | (21.0 | ) | 793.4 | (10 | ) | (8 | ) | |||||||||
South America | 455.5 | 0.3 | 7.2 | (106.2 | ) | 356.8 | (22 | ) | — | ||||||||||||
Rest of World | 486.8 | (60.8 | ) | 140.6 | (18.0 | ) | 548.6 | 13 | (12 | ) | |||||||||||
Segment revenues(e) | 1,819.3 | (134.1 | ) | 158.8 | (145.2 | ) | 1,698.8 | (7 | ) | (7 | ) | ||||||||||
Other items not allocated to segments(d) | (0.3 | ) | — | 0.3 | — | — | (100 | ) | — | ||||||||||||
Revenues - GAAP | $ | 1,819.0 | (134.1 | ) | 159.1 | (145.2 | ) | 1,698.8 | (7 | ) | (7 | ) | |||||||||
Operating profit: | |||||||||||||||||||||
North America | $ | 90.4 | (37.5 | ) | 0.6 | (2.6 | ) | 50.9 | (44 | ) | (41 | ) | |||||||||
South America | 88.0 | 11.9 | 1.6 | (26.8 | ) | 74.7 | (15 | ) | 14 | ||||||||||||
Rest of World | 50.0 | (18.1 | ) | 17.1 | (2.6 | ) | 46.4 | (7 | ) | (36 | ) | ||||||||||
Segment operating profit | 228.4 | (43.7 | ) | 19.3 | (32.0 | ) | 172.0 | (25 | ) | (19 | ) | ||||||||||
Corporate(c) | (54.8 | ) | 23.3 | — | (4.2 | ) | (35.7 | ) | (35 | ) | (43 | ) | |||||||||
Operating profit - non-GAAP | 173.6 | (20.4 | ) | 19.3 | (36.2 | ) | 136.3 | (21 | ) | (12 | ) | ||||||||||
Other items not allocated to segments(d) | (62.6 | ) | (45.2 | ) | (11.2 | ) | 7.9 | (111.1 | ) | 77 | 72 | ||||||||||
Operating profit - GAAP | $ | 111.0 | (65.6 | ) | 8.1 | (28.3 | ) | 25.2 | (77 | ) | (59 | ) |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | ||||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||||
General, administrative and other expenses | $ | (24.6 | ) | (32.5 | ) | (24 | ) | $ | (51.9 | ) | (59.6 | ) | (13 | ) | |||||
Foreign currency transaction gains (losses) | (0.9 | ) | (0.3 | ) | unfav | (3.6 | ) | 0.6 | unfav | ||||||||||
Reconciliation of segment policies to GAAP | 16.3 | 4.0 | fav | 19.8 | 4.2 | fav | |||||||||||||
Corporate expenses | $ | (9.2 | ) | (28.8 | ) | (68 | ) | $ | (35.7 | ) | (54.8 | ) | (35 | ) |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | ||||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||||
Revenues: | |||||||||||||||||||
Acquisitions and dispositions | — | (0.3 | ) | (100 | ) | — | (0.3 | ) | (100 | ) | |||||||||
Revenues | $ | — | (0.3 | ) | (100 | ) | $ | — | (0.3 | ) | (100 | ) | |||||||
Operating profit: | |||||||||||||||||||
Reorganization and Restructuring | (39.0 | ) | (10.6 | ) | unfav | (44.6 | ) | (14.1 | ) | unfav | |||||||||
Acquisitions and dispositions | (30.9 | ) | (22.6 | ) | 37 | (50.0 | ) | (39.8 | ) | 26 | |||||||||
Argentina highly inflationary impact | (2.8 | ) | (0.1 | ) | unfav | (5.2 | ) | (4.4 | ) | 18 | |||||||||
Internal loss | (1.2 | ) | (2.6 | ) | (54 | ) | (10.8 | ) | (2.6 | ) | unfav | ||||||||
Reporting compliance | (0.3 | ) | (0.3 | ) | — | (0.5 | ) | (1.7 | ) | (71 | ) | ||||||||
Operating profit | $ | (74.2 | ) | (36.2 | ) | unfav | $ | (111.1 | ) | (62.6 | ) | 77 |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | ||||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||||
Reportable Segments: | |||||||||||||||||||
North America | $ | (11.5 | ) | (0.5 | ) | unfav | $ | (11.5 | ) | (1.5 | ) | unfav | |||||||
South America | (15.1 | ) | (0.3 | ) | unfav | (17.0 | ) | (0.9 | ) | unfav | |||||||||
Rest of World | (11.9 | ) | (1.9 | ) | unfav | (15.4 | ) | (3.3 | ) | unfav | |||||||||
Total reportable segments | (38.5 | ) | (2.7 | ) | unfav | (43.9 | ) | (5.7 | ) | unfav | |||||||||
Corporate items | (0.5 | ) | (7.9 | ) | (94 | ) | (0.7 | ) | (8.4 | ) | (92 | ) | |||||||
Total | $ | (39.0 | ) | (10.6 | ) | unfav | $ | (44.6 | ) | (14.1 | ) | unfav |
• | Transaction costs related to business acquisitions were $16.1 million in the first six months of 2020. |
• | Amortization expense for acquisition-related intangible assets was $16.0 million in the first six months of 2020. |
• | We incurred $13.6 million in integration costs, primarily related to Dunbar and G4S, in the first six months of 2020. |
• | Restructuring costs related to acquisitions were $3.8 million in the first six months of 2020. |
• | We incurred $17.6 million in integration costs related to Dunbar in the first six months of 2019. |
• | Amortization expense for acquisition-related intangible assets was $13.5 million in the first six months of 2019. |
• | Restructuring costs related to our Dunbar and Rodoban acquisitions were $3.8 million in the first six months of 2019. |
• | Transaction costs related to business acquisitions were $1.9 million in the first six months of 2019. |
• | Compensation expense related to the retention of key Dunbar employees was $1.6 million in the first six months of 2019. |
• | In the first six months of 2019, we recognized $1.3 million in net charges, primarily asset impairment and severance costs, related to the exit from our top-up prepaid mobile phone business in Brazil. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Derivative instrument gains (losses) included in other operating income (expense) | $ | 2.6 | (1.4 | ) | $ | 3.9 | 2.5 | ||||||
Derivative instrument gains (losses) included in other nonoperating income (expense)(a) | (0.4 | ) | — | (8.1 | ) | — |
(a) | Represents loss on foreign currency forward contracts related to 2020 acquisition of business operations from G4S. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Derivative instrument gains (losses) included in other operating income (expense) | $ | 3.7 | (2.4 | ) | $ | 29.8 | 1.4 | ||||||
Offsetting transaction gains (losses) | (3.7 | ) | 2.4 | (29.8 | ) | (1.4 | ) | ||||||
Derivative instrument gains (losses) included in interest expense | (0.3 | ) | (1.3 | ) | (1.0 | ) | (2.7 | ) | |||||
Net gain (loss) on derivative instrument | 3.4 | (3.7 | ) | 28.8 | (1.3 | ) |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | ||||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||||
Foreign currency items: | |||||||||||||||||||
Transaction gains (losses) | $ | (5.3 | ) | 1.7 | unfav | $ | (10.9 | ) | (5.2 | ) | unfav | ||||||||
Derivative instrument gains (losses) | 2.6 | (1.4 | ) | fav | 3.9 | 2.5 | 56 | ||||||||||||
Gains (losses) on sale of property and other assets | 0.1 | 1.1 | (91 | ) | (0.2 | ) | 1.2 | unfav | |||||||||||
Impairment losses | (2.9 | ) | (0.4 | ) | unfav | (4.9 | ) | (1.6 | ) | unfav | |||||||||
Share in earnings of equity affiliates | 0.2 | 0.3 | (33 | ) | 0.2 | 0.5 | (60 | ) | |||||||||||
Royalty income | 1.1 | 1.3 | (15 | ) | 2.3 | 2.5 | (8 | ) | |||||||||||
Other gains (losses) | 0.7 | (0.9 | ) | fav | 1.0 | (0.4 | ) | fav | |||||||||||
Other operating income (expense) | $ | (3.5 | ) | 1.7 | unfav | $ | (8.6 | ) | (0.5 | ) | unfav |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | |||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | ||||||||||||
Interest expense | $ | 23.2 | 22.7 | 2 | $ | 43.2 | 45.7 | (5 | ) |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | ||||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||||
Interest income | $ | 1.6 | 1.1 | 45 | $ | 2.7 | 2.3 | 17 | |||||||||||
Gain on equity securities | 5.9 | — | fav | 3.4 | — | fav | |||||||||||||
Foreign currency transaction gains (losses) | 0.1 | — | fav | (0.1 | ) | — | unfav | ||||||||||||
Derivative instrument losses(a) | (0.4 | ) | — | unfav | (8.1 | ) | — | unfav | |||||||||||
Retirement benefit cost other than service cost | (9.2 | ) | (7.8 | ) | 18 | (18.3 | ) | (17.5 | ) | 5 | |||||||||
Non-income taxes on intercompany billings(b) | (0.7 | ) | (0.8 | ) | (13 | ) | (1.6 | ) | (1.8 | ) | (11 | ) | |||||||
Venezuela operations(c) | — | (0.4 | ) | (100 | ) | — | (0.9 | ) | (100 | ) | |||||||||
Gain on lease termination(d) | — | 5.2 | (100 | ) | — | 5.2 | (100 | ) | |||||||||||
Gain on disposition of subsidiary(e) | — | — | — | 4.7 | — | fav | |||||||||||||
Other | (0.3 | ) | (0.4 | ) | (25 | ) | (1.3 | ) | (1.6 | ) | (19 | ) | |||||||
Interest and other nonoperating income (expense) | $ | (3.0 | ) | (3.1 | ) | (3 | ) | $ | (18.6 | ) | (14.3 | ) | 30 |
(a) | Represents loss on foreign currency forward contracts related to acquisition of business operations from G4S. |
(b) | Certain of our Latin American subsidiaries incur non-income taxes related to the billing of intercompany charges. These intercompany charges do not impact South American segment results and are eliminated in our consolidation. |
(c) | Charges incurred for providing financial support to Brink's Venezuelan subsidiaries after the June 30, 2018 deconsolidation. We do not expect any future funding of the Venezuela business, as long as current U.S. sanctions remain in effect. |
(d) | Gain on termination of a mining lease obligation related to former coal operations. We have no remaining mining leases. |
(e) | Gain on the sale of our former French security services subsidiary in the first quarter of 2020. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
Continuing operations | |||||||||||||
Provision (benefit) for income taxes (in millions) | $ | (43.2 | ) | 12.7 | $ | (55.4 | ) | 22.4 | |||||
Effective tax rate | 158.8 | % | 47.4 | % | 151.4 | % | 43.9 | % |
Three Months Ended June 30, | % | Six Months Ended June 30, | % | ||||||||||||||
(In millions) | 2020 | 2019 | change | 2020 | 2019 | change | |||||||||||
Net income attributable to noncontrolling interests | $ | 2.3 | 1.5 | 53 | $ | 3.3 | 2.3 | 43 |
YTD '20 | YTD '19 | ||||||||||||||||||
(In millions, except for percentages) | Pre-tax | Tax | Effective tax rate | Pre-tax | Tax | Effective tax rate | |||||||||||||
Effective Income Tax Rate(a) | |||||||||||||||||||
GAAP | $ | (36.6 | ) | (55.4 | ) | 151.4 | % | $ | 51.0 | 22.4 | 43.9 | % | |||||||
Retirement plans(d) | 15.8 | 3.7 | 14.9 | 3.5 | |||||||||||||||
Venezuela operations(e) | — | — | 0.9 | — | |||||||||||||||
Reorganization and Restructuring(b) | 44.6 | 10.3 | 14.1 | 3.6 | |||||||||||||||
Acquisitions and dispositions(b) | 54.5 | 5.7 | 42.8 | 2.8 | |||||||||||||||
Argentina highly inflationary impact(b) | 5.2 | (0.5 | ) | 4.4 | — | ||||||||||||||
Internal loss(b) | 10.8 | 2.5 | 2.6 | 0.1 | |||||||||||||||
Reporting compliance(b) | 0.5 | — | 1.7 | — | |||||||||||||||
Gain on lease termination(f) | — | — | (5.2 | ) | — | ||||||||||||||
Income tax rate adjustment(c) | — | 69.3 | — | 7.6 | |||||||||||||||
Non-GAAP | $ | 94.8 | 35.6 | 37.5 | % | $ | 127.2 | 40.0 | 31.4 | % |
(a) | From continuing operations. |
(b) | See “Other Items Not Allocated To Segments” on pages 44–45 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 37.5% for 2020 and was 31.4% for 2019. |
(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) | Post-deconsolidation funding of ongoing costs related to our Venezuelan operations was $0.9 million in 2019 and was expensed as incurred and reported in interest and other nonoperating income (expense). We do not expect any future funding of the Venezuela business, as long as current U.S. sanctions remain in effect. |
(f) | Gain on settlement of a mining lease obligation related to former coal operations. We have no remaining mining leases. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions, except for percentages and per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||
Revenues: | |||||||||||||
GAAP | $ | 826.0 | 914.0 | $ | 1,698.8 | 1,819.0 | |||||||
Acquisitions and dispositions(b) | — | 0.3 | — | 0.3 | |||||||||
Non-GAAP | $ | 826.0 | 914.3 | $ | 1,698.8 | 1,819.3 | |||||||
Operating profit: | |||||||||||||
GAAP | $ | (1.0 | ) | 52.6 | $ | 25.2 | 111.0 | ||||||
Reorganization and Restructuring(b) | 39.0 | 10.6 | 44.6 | 14.1 | |||||||||
Acquisitions and dispositions(b) | 30.9 | 22.6 | 50.0 | 39.8 | |||||||||
Argentina highly inflationary impact(b) | 2.8 | 0.1 | 5.2 | 4.4 | |||||||||
Internal loss(b) | 1.2 | 2.6 | 10.8 | 2.6 | |||||||||
Reporting compliance(b) | 0.3 | 0.3 | 0.5 | 1.7 | |||||||||
Non-GAAP | $ | 73.2 | 88.8 | $ | 136.3 | 173.6 | |||||||
Operating margin: | |||||||||||||
GAAP margin | (0.1 | )% | 5.8 | % | 1.5 | % | 6.1 | % | |||||
Non-GAAP margin | 8.9 | % | 9.7 | % | 8.0 | % | 9.5 | % | |||||
Interest expense: | |||||||||||||
GAAP | $ | (23.2 | ) | (22.7 | ) | $ | (43.2 | ) | (45.7 | ) | |||
Acquisitions and dispositions(b) | 0.3 | 1.5 | 1.0 | 3.0 | |||||||||
Non-GAAP | $ | (22.9 | ) | (21.2 | ) | $ | (42.2 | ) | (42.7 | ) | |||
Interest and other nonoperating income (expense): | |||||||||||||
GAAP | $ | (3.0 | ) | (3.1 | ) | $ | (18.6 | ) | (14.3 | ) | |||
Retirement plans(d) | 8.1 | 6.5 | 15.8 | 14.9 | |||||||||
Venezuela operations(e) | — | 0.4 | — | 0.9 | |||||||||
Acquisitions and dispositions(b) | 0.5 | — | 3.5 | — | |||||||||
Gain on lease termination(g) | — | (5.2 | ) | — | (5.2 | ) | |||||||
Non-GAAP | $ | 5.6 | (1.4 | ) | $ | 0.7 | (3.7 | ) | |||||
Provision for income taxes: | |||||||||||||
GAAP | $ | (43.2 | ) | 12.7 | $ | (55.4 | ) | 22.4 | |||||
Retirement plans(d) | 1.9 | 1.6 | 3.7 | 3.5 | |||||||||
Reorganization and Restructuring(b) | 9.0 | 2.6 | 10.3 | 3.6 | |||||||||
Acquisitions and dispositions(b) | 3.6 | 1.1 | 5.7 | 2.8 | |||||||||
Argentina highly inflationary impact(b) | (0.3 | ) | — | (0.5 | ) | — | |||||||
Internal loss(b) | 0.3 | 0.1 | 2.5 | 0.1 | |||||||||
Income tax rate adjustment(c) | 49.7 | 2.7 | 69.3 | 7.6 | |||||||||
Non-GAAP | $ | 21.0 | 20.8 | $ | 35.6 | 40.0 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In millions, except for percentages and per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||
Net income (loss) attributable to noncontrolling interests: | |||||||||||||
GAAP | $ | 2.3 | 1.5 | $ | 3.3 | 2.3 | |||||||
Reorganization and Restructuring(b) | — | — | 0.1 | — | |||||||||
Acquisitions and dispositions(b) | 0.1 | — | 0.1 | — | |||||||||
Income tax rate adjustment(c) | (1.6 | ) | — | (2.0 | ) | — | |||||||
Non-GAAP | $ | 0.8 | 1.5 | $ | 1.5 | 2.3 | |||||||
Income (loss) from continuing operations attributable to Brink's: | |||||||||||||
GAAP | $ | 13.7 | 12.6 | $ | 15.5 | 26.3 | |||||||
Retirement plans(d) | 6.2 | 4.9 | 12.1 | 11.4 | |||||||||
Venezuela operations(e) | — | 0.4 | — | 0.9 | |||||||||
Reorganization and Restructuring(b) | 30.0 | 8.0 | 34.2 | 10.5 | |||||||||
Acquisitions and dispositions(b) | 28.0 | 23.0 | 48.7 | 40.0 | |||||||||
Argentina highly inflationary impact(b) | 3.1 | 0.1 | 5.7 | 4.4 | |||||||||
Internal loss(b) | 0.9 | 2.5 | 8.3 | 2.5 | |||||||||
Reporting compliance(b) | 0.3 | 0.3 | 0.5 | 1.7 | |||||||||
Gain on lease termination(g) | — | (5.2 | ) | — | (5.2 | ) | |||||||
Income tax rate adjustment(c) | (48.1 | ) | (2.7 | ) | (67.3 | ) | (7.6 | ) | |||||
Non-GAAP | $ | 34.1 | 43.9 | $ | 57.7 | 84.9 | |||||||
Diluted EPS: | |||||||||||||
GAAP | $ | 0.27 | 0.25 | $ | 0.30 | 0.52 | |||||||
Retirement plans(d) | 0.12 | 0.10 | 0.24 | 0.22 | |||||||||
Venezuela operations(e) | — | 0.01 | — | 0.02 | |||||||||
Reorganization and Restructuring(b) | 0.59 | 0.16 | 0.67 | 0.21 | |||||||||
Acquisitions and dispositions(b) | 0.55 | 0.45 | 0.95 | 0.79 | |||||||||
Argentina highly inflationary impact(b) | 0.06 | — | 0.11 | 0.09 | |||||||||
Internal loss(b) | 0.02 | 0.05 | 0.16 | 0.05 | |||||||||
Reporting compliance(b) | 0.01 | 0.01 | 0.01 | 0.03 | |||||||||
Gain on lease termination(g) | — | (0.10 | ) | — | (0.10 | ) | |||||||
Income tax rate adjustment(c) | (0.94 | ) | (0.05 | ) | (1.31 | ) | (0.15 | ) | |||||
Non-GAAP | $ | 0.67 | 0.86 | $ | 1.13 | 1.67 |
Six Months Ended June 30, | $ | ||||||||
(In millions) | 2020 | 2019 | change | ||||||
Cash flows from operating activities | |||||||||
Operating activities - GAAP | $ | (60.0 | ) | 23.9 | (83.9 | ) | |||
(Increase) decrease in restricted cash held for customers | (5.3 | ) | 29.5 | (34.8 | ) | ||||
(Increase) decrease in certain customer obligations(a) | 11.3 | (7.0 | ) | 18.3 | |||||
Operating activities - non-GAAP | $ | (54.0 | ) | 46.4 | (100.4 | ) |
(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. |
Six Months Ended June 30, | $ | ||||||||
(In millions) | 2020 | 2019 | change | ||||||
Cash flows from investing activities | |||||||||
Capital expenditures | $ | (53.9 | ) | (73.1 | ) | 19.2 | |||
Acquisitions, net of cash acquired | (408.4 | ) | (167.0 | ) | (241.4 | ) | |||
Dispositions, net of cash disposed | (3.1 | ) | — | (3.1 | ) | ||||
Marketable securities: | |||||||||
Purchases | (1.2 | ) | (2.2 | ) | 1.0 | ||||
Sales | 0.6 | 0.8 | (0.2 | ) | |||||
Proceeds from sale of property and equipment | 1.4 | 1.9 | (0.5 | ) | |||||
Acquisition of customer contracts | (5.2 | ) | (3.1 | ) | (2.1 | ) | |||
Investing activities | $ | (469.8 | ) | (242.7 | ) | (227.1 | ) |
Six Months Ended June 30, | $ | Full Year | ||||||||||
(In millions) | 2020 | 2019 | change | 2019 | ||||||||
Property and equipment acquired during the period | ||||||||||||
Capital expenditures:(a) | ||||||||||||
North America | $ | 21.7 | 33.6 | (11.9 | ) | 76.6 | ||||||
South America | 10.6 | 19.8 | (9.2 | ) | 44.4 | |||||||
Rest of World | 18.5 | 13.8 | 4.7 | 33.5 | ||||||||
Corporate | 3.1 | 5.9 | (2.8 | ) | 10.3 | |||||||
Capital expenditures - GAAP and non-GAAP | $ | 53.9 | 73.1 | (19.2 | ) | 164.8 | ||||||
Financing leases:(b) | ||||||||||||
North America | $ | 18.4 | 26.3 | (7.9 | ) | 51.8 | ||||||
South America | 0.5 | 0.9 | (0.4 | ) | 3.7 | |||||||
Rest of World | 0.5 | 3.3 | (2.8 | ) | 4.2 | |||||||
Financing leases - GAAP and non-GAAP | $ | 19.4 | 30.5 | (11.1 | ) | 59.7 | ||||||
Total: | ||||||||||||
North America | $ | 40.1 | 59.9 | (19.8 | ) | 128.4 | ||||||
South America | 11.1 | 20.7 | (9.6 | ) | 48.1 | |||||||
Rest of World | 19.0 | 17.1 | 1.9 | 37.7 | ||||||||
Corporate | 3.1 | 5.9 | (2.8 | ) | 10.3 | |||||||
Total property and equipment acquired | $ | 73.3 | 103.6 | (30.3 | ) | 224.5 | ||||||
Depreciation and amortization(a) | ||||||||||||
North America | $ | 40.2 | 42.3 | (2.1 | ) | 81.1 | ||||||
South America | 13.1 | 14.0 | (0.9 | ) | 27.9 | |||||||
Rest of World | 21.2 | 17.3 | 3.9 | 32.3 | ||||||||
Corporate | 4.4 | 5.6 | (1.2 | ) | 10.8 | |||||||
Depreciation and amortization - non-GAAP | $ | 78.9 | 79.2 | (0.3 | ) | 152.1 | ||||||
Argentina highly inflationary impact | 1.4 | 0.5 | 0.9 | 1.8 | ||||||||
Reorganization and Restructuring | 0.3 | 0.1 | 0.2 | 0.2 | ||||||||
Acquisitions and dispositions | 0.5 | 3.3 | (2.8 | ) | 3.1 | |||||||
Amortization of intangible assets | 16.0 | 13.5 | 2.5 | 27.8 | ||||||||
Depreciation and amortization - GAAP | $ | 97.1 | 96.6 | 0.5 | 185.0 |
(a) | Incremental depreciation related to highly inflationary accounting in Argentina, accelerated depreciation related to restructuring and acquisition-related integration activities, and amortization of acquisition-related intangible assets have 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. |
Six Months Ended June 30, | $ | ||||||||
(In millions) | 2020 | 2019 | change | ||||||
Cash flows from financing activities | |||||||||
Borrowings and repayments: | |||||||||
Short-term borrowings | $ | (1.6 | ) | 0.1 | (1.7 | ) | |||
Long-term revolving credit facilities, net | (118.9 | ) | (130.6 | ) | 11.7 | ||||
Other long-term debt, net | 949.7 | 309.5 | 640.2 | ||||||
Borrowings (repayments) | 829.2 | 179.0 | 650.2 | ||||||
Debt financing costs | (11.5 | ) | (4.0 | ) | (7.5 | ) | |||
Dividends to: | |||||||||
Shareholders of Brink’s | (15.1 | ) | (14.9 | ) | (0.2 | ) | |||
Noncontrolling interests in subsidiaries | (7.9 | ) | (0.2 | ) | (7.7 | ) | |||
Payment of acquisition-related obligation | (6.8 | ) | (1.5 | ) | (5.3 | ) | |||
Tax withholdings associated with share-based compensation | (9.3 | ) | (7.2 | ) | (2.1 | ) | |||
Other | 0.8 | (1.7 | ) | 2.5 | |||||
Financing activities | $ | 779.4 | 149.5 | 629.9 |
June 30, | December 31, | |||||
(In millions) | 2020 | 2019 | ||||
Debt: | ||||||
Short-term borrowings | $ | 12.1 | 14.3 | |||
Long-term debt | 2,471.3 | 1,629.3 | ||||
Total Debt | 2,483.4 | 1,643.6 | ||||
Restricted cash borrowings(a) | (10.3 | ) | (10.3 | ) | ||
Total Debt without restricted cash borrowings | 2,473.1 | 1,633.3 | ||||
Less: | ||||||
Cash and cash equivalents | 531.3 | 311.0 | ||||
Amounts held by Cash Management Services operations(b) | (11.6 | ) | (26.3 | ) | ||
Cash and cash equivalents available for general corporate purposes | 519.7 | 284.7 | ||||
Net Debt(c) | $ | 1,953.4 | 1,348.6 |
(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. |
(c) | Included within Net Debt is net cash from our Argentina operations of $22 million at June 30, 2020 and $17 million at December 31, 2019 (see Note 1 to the condensed consolidated financial statements for a discussion of currency controls in Argentina). |
• | our future profitability; |
• | the quality of our accounts receivable; |
• | our relative levels of debt and equity; |
• | the volatility and overall condition of the capital markets; and |
• | the market prices of our securities. |
• | Changing 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 |
Funded Status of U.S. Retirement Plans | |||||||||||||||||||||
Actual | Actual | Projected | |||||||||||||||||||
(In millions) | 2019 | First Half 2020 | 2nd Half 2020 | 2021 | 2022 | 2023 | 2024 | ||||||||||||||
Primary U.S. pension plan | |||||||||||||||||||||
Beginning funded status | $ | (106.8 | ) | (118.3 | ) | (108.4 | ) | (97.4 | ) | (75.6 | ) | (38.6 | ) | 4.0 | |||||||
Net periodic pension credit(a) | 16.9 | 9.9 | 9.9 | 21.0 | 22.4 | 24.0 | 27.1 | ||||||||||||||
Payment from Brink’s | — | — | — | — | 14.1 | 17.6 | 16.3 | ||||||||||||||
Benefit plan experience gain (loss) | (28.4 | ) | — | 1.1 | 0.8 | 0.5 | 1.0 | — | |||||||||||||
Ending funded status | $ | (118.3 | ) | (108.4 | ) | (97.4 | ) | (75.6 | ) | (38.6 | ) | 4.0 | 47.4 | ||||||||
UMWA plans | |||||||||||||||||||||
Beginning funded status | $ | (297.4 | ) | (246.7 | ) | (243.8 | ) | (246.3 | ) | (247.2 | ) | (249.0 | ) | (251.8 | ) | ||||||
Net periodic postretirement cost(a) | (4.0 | ) | 0.1 | 0.3 | (0.9 | ) | (1.8 | ) | (2.8 | ) | (3.9 | ) | |||||||||
Benefit plan experience gain (loss) | 55.1 | — | — | — | — | — | — | ||||||||||||||
Other | (0.4 | ) | 2.8 | (2.8 | ) | — | — | — | — | ||||||||||||
Ending funded status | $ | (246.7 | ) | (243.8 | ) | (246.3 | ) | (247.2 | ) | (249.0 | ) | (251.8 | ) | (255.7 | ) | ||||||
Black lung plans | |||||||||||||||||||||
Beginning funded status | $ | (67.9 | ) | (99.2 | ) | (96.6 | ) | (91.5 | ) | (84.0 | ) | (77.1 | ) | (70.6 | ) | ||||||
Net periodic postretirement cost(a) | (3.0 | ) | (1.5 | ) | (1.6 | ) | (2.6 | ) | (2.5 | ) | (2.2 | ) | (2.1 | ) | |||||||
Payment from Brink’s | 8.4 | 4.1 | 6.7 | 10.1 | 9.4 | 8.7 | 8.1 | ||||||||||||||
Benefit plan experience gain (loss) | (36.7 | ) | — | — | — | — | — | — | |||||||||||||
Ending funded status | $ | (99.2 | ) | (96.6 | ) | (91.5 | ) | (84.0 | ) | (77.1 | ) | (70.6 | ) | (64.6 | ) |
(a) | Excludes amounts reclassified from accumulated other comprehensive income (loss). |
Actual | Actual | Projected | ||||||||||||||||||||||
(In millions) | 2019 | First Half 2020 | 2nd Half 2020 | FY2020 | 2021 | 2022 | 2023 | 2024 | ||||||||||||||||
Primary U.S. pension plan | $ | 21.8 | 4.1 | 4.6 | 8.7 | 3.1 | (1.3 | ) | (4.4 | ) | (11.3 | ) | ||||||||||||
UMWA plans | 15.9 | 5.7 | 5.8 | 11.5 | 11.4 | 11.6 | 11.9 | 12.3 | ||||||||||||||||
Black lung plans | 7.4 | 5.5 | 5.6 | 11.1 | 9.8 | 9.1 | 8.5 | 7.9 | ||||||||||||||||
Total | $ | 45.1 | 15.3 | 16.0 | 31.3 | 24.3 | 19.4 | 16.0 | 8.9 |
• | from Brink’s to U.S. retirement plans, and |
• | from the plans to participants. |
Actual | Actual | Projected | ||||||||||||||||||||||
(In millions) | 2019 | First Half 2020 | 2nd Half 2020 | FY2020 | 2021 | 2022 | 2023 | 2024 | ||||||||||||||||
Payments from Brink’s to U.S. Plans | ||||||||||||||||||||||||
Primary U.S. pension plan | $ | — | — | — | — | — | 14.1 | 17.6 | 16.3 | |||||||||||||||
Black lung plans | 8.4 | 4.1 | 6.7 | 10.8 | 10.1 | 9.4 | 8.7 | 8.1 | ||||||||||||||||
Total | $ | 8.4 | 4.1 | 6.7 | 10.8 | 10.1 | 23.5 | 26.3 | 24.4 | |||||||||||||||
Payments from U.S. Plans to participants | ||||||||||||||||||||||||
Primary U.S. pension plan | $ | 48.5 | 21.1 | 25.9 | 47.0 | 47.0 | 47.0 | 47.0 | 46.9 | |||||||||||||||
UMWA plans | 29.3 | 13.2 | 17.0 | 30.2 | 30.2 | 29.7 | 29.3 | 28.7 | ||||||||||||||||
Black lung plans | 8.4 | 4.1 | 6.7 | 10.8 | 10.1 | 9.4 | 8.7 | 8.1 | ||||||||||||||||
Total | $ | 86.2 | 38.4 | 49.6 | 88.0 | 87.3 | 86.1 | 85.0 | 83.7 |
• | 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; |
• | pandemics (including the ongoing COVID-19 pandemic and related impacts and restrictions on the actions of businesses and consumers, including suppliers and customers), acts of terrorism, strikes or other extraordinary events that negatively affect global or regional cash commerce; |
• | anticipated cash needs in light of our current liquidity position and the impact of COVID-19 on our liquidity; |
• | 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 | ||||||||||
April 1 through | ||||||||||||||
April 30, 2020 | — | $ | — | — | $ | — | ||||||||
May 1 through | ||||||||||||||
May 31, 2020 | — | — | — | — | ||||||||||
June 1 through | ||||||||||||||
June 30, 2020 | — | — | — | — |
(1) | On February 6, 2020, the Company’s board of directors authorized the Company to repurchase up to $250,000,000 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. At June 30, 2020, $250,000,000 remains available under this program. The program will expire on December 31, 2021. |
10.1 | |
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, 2020, furnished in Inline eXtensible Business Reporting Language (iXBRL)). The instance document does not appear in the interactive data file because its iXBRL tags are embedded within the iXBRL document. Attached as Exhibit 101 to this report are the following documents formatted in iXBRL: (i) the Condensed Consolidated Balance Sheets at June 30, 2020, and December 31, 2019, (ii) the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2020 and 2019, (iv) the Condensed Consolidated Statements of Equity for the six months ended June 30, 2020 and 2019, (v) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019 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 | |
July 28, 2020 | By: /s/ Ronald J. Domanico |
Ronald J. Domanico | |
(Executive Vice President and | |
Chief Financial Officer) | |
(principal financial officer) |
Section 1.01. | Definitions 1 |
Section 2.01. | Available Shares 4 |
Section 2.02. | Administration 5 |
Section 2.03. | Accounts 5 |
Section 2.04. | Deferral of Other Amounts 5 |
Section 3.01. | Definitions 6 |
Section 3.02. | Eligibility 6 |
Section 3.03. | Deferral of Cash Incentive Payments 6 |
Section 3.04. | Matching Incentive Contributions 7 |
Section 3.05. Deferral of Stock Unit Awards | 7 |
Section 3.06. | Crediting of Cash and Stock Incentive Accounts 7 |
Section 3.07. | Adjustments 8 |
Section 3.08. | Dividends and Distributions 8 |
Section 3.09. | Minimum Distribution 8 |
Section 4.01. | Definitions 9 |
Section 4.02. | Eligibility 9 |
Section 4.03. | Deferral of Salary 9 |
Section 4.04. | Matching Salary Contributions 9 |
Section 4.05. | Crediting of Cash and Stock Incentive Accounts 10 |
Section 4.06. | Adjustments 10 |
Section 4.07. | Dividends and Distributions 10 |
Section 4.08. | Minimum Distribution 11 |
Section 5.01. | Definitions 11 |
Section 5.02. | Eligibility 11 |
Section 5.03. | Deferral of Compensation 12 |
Section 5.04. | Matching Supplemental Savings Plan Contributions 12 |
Section 5.05. | Crediting of Cash and Stock Incentive Accounts 13 |
Section 5.06. | Adjustments 13 |
Section 5.07. | Dividends and Distributions 14 |
Section 6.01. | Definitions 14 |
Section 6.02. | Deferrals of Cash Performance Payments 14 |
Section 6.03. | Adjustments 15 |
Section 6.04. | Dividends and Distributions 15 |
Section 6.05. | Minimum Distribution 15 |
Section 7.01. | Reallocations Between Cash Incentive Accounts and Stock Incentive Accounts 15 |
Section 7.02. | Reallocations Among Investment Options 16 |
Section 7.03. | Unconverted Amounts Upon Termination of Employment 16 |
Section 7.04. | Removal of Investment Option 16 |
Section 8.01. | In Service Distributions 16 |
Section 8.02. | Certain Distributions on Death or Disability 17 |
Section 8.03. | Certain Distributions on Termination of Employment 18 |
Section 8.04. | Distributions Attributable to Matching Incentive Contributions |
Section 8.05. | Distribution Following a Change in Control 21 |
Section 8.06. | Unforeseeable Emergencies 21 |
Section 8.07. | Changes to and Cancelations of Deferral Elections 22 |
Section 8.08. | Termination of Employment by the Company for Cause 22 |
Section 8.09. | Installment Payments 22 |
Section 10.01. | Nontransferability of Benefits 23 |
Section 10.02. | Notices 23 |
Section 10.03. | Limitation on Rights of Employee 23 |
Section 10.04. | No Contract of Employment 23 |
Section 10.05. | Withholding 24 |
Section 10.06. | Amendment and Termination 24 |
Months Since Initial Program Participation | Vested Percentage |
less than 36 | 0 |
at least 36 but less than 48 | 50% |
at least 48 but less than 60 | 75% |
60 or more | 100% |
/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) |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
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) | 50,500,000 | 50,100,000 |
Shares outstanding (in shares) | 50,500,000 | 50,100,000 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 15.2 | $ 14.0 | $ 18.0 | $ 28.5 |
Benefit plan adjustments: | ||||
Benefit plan actuarial gains | 13.2 | 9.0 | 31.8 | 20.3 |
Benefit plan prior service costs | (1.3) | (1.2) | (2.4) | (2.5) |
Deferred profit sharing | 0.0 | (0.1) | 0.0 | (0.1) |
Total benefit plan adjustments | 11.9 | 7.9 | 29.4 | 17.9 |
Foreign currency translation adjustments | 28.2 | 9.1 | (92.1) | 9.7 |
Losses on cash flow hedges | (2.6) | (10.6) | (17.3) | (18.5) |
Other comprehensive income (loss) before tax | 37.5 | 6.4 | (80.0) | 9.1 |
Provision (benefit) for income taxes | 2.3 | (0.7) | 2.2 | (0.2) |
Other comprehensive income (loss) | 35.2 | 7.1 | (82.2) | 9.3 |
Comprehensive income (loss) | 50.4 | 21.1 | (64.2) | 37.8 |
Less comprehensive income attributable to noncontrolling interests | 3.3 | 1.6 | 3.9 | 2.7 |
Comprehensive income (loss) attributable to Brink's | $ 47.1 | $ 19.5 | $ (68.1) | $ 35.1 |
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, 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 | (0.5) | 0.5 | |||||||
Dividends to: | ||||||||||
Brink’s common shareholders | (7.4) | (7.4) | ||||||||
Stock options and awards | ||||||||||
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 | |||||||||
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 | 28.5 | |||||||||
Other comprehensive income | 9.3 | 8.9 | ||||||||
Ending balance at Jun. 30, 2019 | 209.7 | $ 50.0 | 647.7 | 469.7 | (973.2) | 15.5 | ||||
Ending balance, Shares at Jun. 30, 2019 | 50.0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect of change in accounting principle | [1] | 0.0 | 28.8 | (28.8) | ||||||
Beginning balance at Mar. 31, 2019 | 179.3 | $ 49.9 | 630.9 | 464.7 | (980.2) | 14.0 | ||||
Beginning balance, Shares at Mar. 31, 2019 | 49.9 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 14.0 | 12.5 | 1.5 | |||||||
Other comprehensive income | 7.1 | 7.0 | 0.1 | |||||||
Dividends to: | ||||||||||
Brink’s common shareholders | (7.5) | (7.5) | ||||||||
Noncontrolling interests | (0.2) | (0.2) | ||||||||
Stock options and awards | ||||||||||
Compensation expense | 16.7 | 16.7 | ||||||||
Other share-based benefit transactions | 0.2 | $ 0.1 | 0.1 | |||||||
Other share-based benefit transactions, shares | 0.1 | |||||||||
Capital contributions from noncontrolling interest | 0.1 | 0.1 | ||||||||
Ending balance at Jun. 30, 2019 | 209.7 | $ 50.0 | 647.7 | 469.7 | (973.2) | 15.5 | ||||
Ending balance, Shares at Jun. 30, 2019 | 50.0 | |||||||||
Beginning balance at Dec. 31, 2019 | 207.6 | $ 50.1 | 663.3 | 457.4 | (979.0) | 15.8 | ||||
Beginning balance, Shares at Dec. 31, 2019 | 50.1 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 2.8 | 1.8 | 1.0 | |||||||
Other comprehensive income | (117.4) | (117.0) | (0.4) | |||||||
Dividends to: | ||||||||||
Brink’s common shareholders | (7.5) | (7.5) | ||||||||
Noncontrolling interests | (0.7) | (0.7) | ||||||||
Stock options and awards | ||||||||||
Compensation expense | 7.2 | 7.2 | ||||||||
Other share-based benefit transactions | (8.3) | $ 0.4 | (8.6) | (0.1) | ||||||
Other share-based benefit transactions, shares | 0.4 | |||||||||
Ending balance at Mar. 31, 2020 | 82.0 | $ 50.5 | 661.9 | 449.9 | (1,096.0) | 15.7 | ||||
Ending balance, Shares at Mar. 31, 2020 | 50.5 | |||||||||
Beginning balance at Dec. 31, 2019 | 207.6 | $ 50.1 | 663.3 | 457.4 | (979.0) | 15.8 | ||||
Beginning balance, Shares at Dec. 31, 2019 | 50.1 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 18.0 | |||||||||
Other comprehensive income | (82.2) | (82.8) | ||||||||
Ending balance at Jun. 30, 2020 | 190.9 | $ 50.5 | 667.4 | 455.2 | (1,061.8) | 79.6 | ||||
Ending balance, Shares at Jun. 30, 2020 | 50.5 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect of change in accounting principle | [2] | (1.7) | (1.7) | 0.0 | ||||||
Beginning balance at Mar. 31, 2020 | 82.0 | $ 50.5 | 661.9 | 449.9 | (1,096.0) | 15.7 | ||||
Beginning balance, Shares at Mar. 31, 2020 | 50.5 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 15.2 | 12.9 | 2.3 | |||||||
Other comprehensive income | 35.2 | 34.2 | 1.0 | |||||||
Dividends to: | ||||||||||
Brink’s common shareholders | (7.6) | (7.6) | ||||||||
Noncontrolling interests | (7.2) | (7.2) | ||||||||
Stock options and awards | ||||||||||
Compensation expense | 5.4 | 5.4 | ||||||||
Other share-based benefit transactions | 0.1 | $ 0.0 | 0.1 | |||||||
Other share-based benefit transactions, shares | 0.0 | |||||||||
Acquisitions with noncontrolling interests | 67.8 | 67.8 | ||||||||
Ending balance at Jun. 30, 2020 | $ 190.9 | $ 50.5 | $ 667.4 | $ 455.2 | $ (1,061.8) | $ 79.6 | ||||
Ending balance, Shares at Jun. 30, 2020 | 50.5 | |||||||||
|
Condensed Consolidated Statement of Equity (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
|
Dividends to: | ||||
Dividends (dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 |
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Cash flows from operating activities: | ||
Net income | $ 18.0 | $ 28.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss from discontinued operations, net of tax | (0.8) | (0.1) |
Depreciation and amortization | 97.1 | 96.6 |
Share-based compensation expense | 12.6 | 26.1 |
Deferred income taxes | 21.9 | (1.0) |
Gains on sale of property, equipment and marketable securities | (3.3) | (1.1) |
Gains on business dispositions | 4.7 | 0.0 |
Impairment losses | 4.9 | 1.6 |
Retirement benefit funding less than expense: | ||
Pension | 6.1 | 1.9 |
Other than pension | 4.7 | 7.1 |
Remeasurement losses due to Argentina currency devaluations | 3.5 | 3.4 |
Other operating | 16.2 | (4.7) |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable and income taxes receivable | (87.1) | (56.3) |
Accounts payable, income taxes payable and accrued liabilities | (91.3) | (29.8) |
Restricted cash held for customers | 5.3 | (29.5) |
Customer obligations | (11.3) | 7.0 |
Prepaid and other current assets | (12.6) | (16.3) |
Other | (40.8) | (9.7) |
Net cash provided (used) by operating activities | (60.0) | 23.9 |
Cash flows from investing activities: | ||
Capital expenditures | (53.9) | (73.1) |
Acquisitions, net of cash acquired | (408.4) | (167.0) |
Dispositions, net of cash disposed | (3.1) | 0.0 |
Purchases | (1.2) | (2.2) |
Sales | 0.6 | 0.8 |
Cash proceeds from sale of property and equipment | 1.4 | 1.9 |
Acquisition of customer contracts | (5.2) | (3.1) |
Net cash used by investing activities | (469.8) | (242.7) |
Cash flows from financing activities: | ||
Short-term borrowings | (1.6) | 0.1 |
Borrowings | 736.7 | 525.9 |
Repayments | (855.6) | (656.5) |
Borrowings | 994.3 | 334.9 |
Repayments | (44.6) | (25.4) |
Payment of acquisition-related obligation | (6.8) | (1.5) |
Debt financing costs | 11.5 | 4.0 |
Dividends to: | ||
Shareholders of Brink’s | (15.1) | (14.9) |
Noncontrolling interests in subsidiaries | (7.9) | (0.2) |
Tax withholdings associated with share-based compensation | (9.3) | (7.2) |
Other | 0.8 | (1.7) |
Net cash provided by financing activities | 779.4 | 149.5 |
Effect of exchange rate changes on cash | (15.8) | 0.5 |
Cash, cash equivalents and restricted cash: | ||
Increase (decrease) | 233.8 | (68.8) |
Balance at beginning of period | 469.0 | 479.5 |
Balance at end of period | $ 702.8 | $ 410.7 |
Basis of presentation |
6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||
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, 2019. 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, allowance for doubtful accounts, deferred tax assets, purchase price allocations and foreign currency translation. Our estimates could be materially adversely affected in future periods by the coronavirus (COVID-19) pandemic, which began to have an adverse impact on our results of operations in the quarter ended March 31, 2020 through a reduction in global commerce, reducing the demand for our services and lowering volumes. As a result, we have experienced reduced revenues as some of our customers canceled or suspended service. Consequently we began to align our cost structure to the reduced demand for our services. We expect a negative impact on volumes, revenues and operating results while the COVID-19 pandemic continues. Because of the significant uncertainty with respect to the magnitude of the impact and duration of the COVID-19 pandemic, future developments associated with the COVID-19 pandemic could materially adversely affect our financial position, results of operations, cash flows or our long-term liquidity position. We will continue to monitor developments affecting our condensed consolidated financial statements, including indicators that goodwill or other long-lived assets may be impaired, increases in valuation allowances for doubtful accounts or deferred tax assets may be necessary or other accruals that may increase or be necessary resulting from actions taken to reduce our cost structure or conserve our liquidity. 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 5% of our consolidated revenues for the first six months of 2020 and 6% of our consolidated revenues for the first six months of 2019. The operating environment in Argentina continues to present business challenges, including ongoing devaluation of the Argentine peso and significant inflation. In the first six months of 2020 and 2019, the Argentine peso declined approximately 15% (from 59.9 to 70.4 pesos to the U.S. dollar) and approximately 12% (from 37.6 to 42.6 pesos to the U.S. dollar), respectively. For the year ended December 31, 2019, the Argentine peso declined approximately 37% (from 37.6 to 59.9 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 first six months of 2020, we recognized a $3.5 million pretax remeasurement loss. In the first six months of 2019, we recognized a $3.4 million pretax remeasurement loss. At June 30, 2020, Argentina's economy remains highly inflationary for accounting purposes. At June 30, 2020, we had net monetary assets denominated in Argentine pesos of $25.0 million (including cash of $21.1 million). At June 30, 2020, we had net nonmonetary assets of $149.2 million (including $99.8 million of goodwill). At June 30, 2020, we had no equity securities denominated in Argentine pesos. During September 2019, the Argentine government announced currency controls on both companies and individuals. The Argentine central bank issued details as to how the exchange control procedures would operate in practice. Under these procedures, central bank approval is required for many transactions, including dividend repatriation abroad. We have in the past and may elect in the future to utilize other market mechanisms to convert Argentine pesos into U.S. dollars. Conversions under these other market mechanisms have settled at rates that are generally less favorable than the rates at which we remeasured the financial statements of Brink's Argentina. We did not have any such conversions losses in the six months ended June 30, 2020. Although the Argentine government has implemented currency controls, Brink’s management continues to provide guidance and strategic oversight, including budgeting and forecasting for Brink’s Argentina. We continue to control our Argentina business for purposes of consolidation of our financial statements and continue to monitor the situation in Argentina. Venezuela Our Venezuelan operations offer transportation and route-based logistics management services for cash and valuables throughout Venezuela. Currency exchange regulations, combined with other government regulations, such as price controls and strict labor laws, significantly limit our ability to make and execute operational decisions at our Venezuelan subsidiaries. As a result of these conditions, we do not meet the accounting criteria for control over our Venezuelan operations and, as a result, we report the results of our investment in our Venezuelan subsidiaries using the cost method of accounting, the basis of which approximates zero. Prior to the imposition of the U.S. government sanctions in 2019, we provided immaterial amounts of financial support to our Venezuela operations. We continue to monitor the situation in Venezuela, including the imposition of sanctions by the U.S. government targeting Venezuela. Internal loss A former non-management employee in our U.S. global services operations embezzled funds from Brink's in prior years. Except for a small deductible amount, the amount of the internal loss related to the embezzlement was covered by our insurance. In an effort to cover up the embezzlement, the former employee intentionally misstated the underlying accounts receivable subledger data. In 2019, we incurred $4.5 million in costs (primarily third party expenses) to reconstruct the accounts receivables subledger. In the first six months of 2020, we incurred an additional $0.2 million in costs related to this activity. In the third quarter of 2019, we were able to identify $4.0 million of revenues billed and collected in prior periods which had never been recorded in the general ledger. We also identified and recorded $0.3 million in bank fees, which had been incurred in prior periods. The rebuild of the subledger was completed during the third quarter of 2019. Based on the reconstructed subledger, we were able to analyze and quantify the uncollected receivables from prior periods. Although we plan to attempt to collect these receivables, we estimated an increase to bad debt expense of $13.7 million in the third quarter of 2019. The estimate of the allowance for doubtful accounts was adjusted in the fourth quarter of 2019 for an additional $6.4 million and again in the first six months of 2020 for an additional $10.6 million. This estimate will be adjusted in future periods, if needed, as assumptions related to the collectability of these accounts receivable change. At June 30, 2020, we have recorded a $21.6 million allowance on $25.0 million of accounts receivable, or 86%. We have defined accounts receivable impacted by the embezzlement as accounts receivable recorded as of and prior to the third quarter of 2019. Due to the unusual nature of this internal loss and the related errors in the subledger data, along with the fact that management has excluded these amounts when evaluating internal performance, we have excluded these net charges from segment results. Goodwill Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. We review goodwill for impairment annually, as of October 1, and whenever events or circumstances in interim periods indicate that it is more likely than not that an impairment may have occurred. Given the COVID-19 pandemic, impairment indicators were reviewed as of June 30, 2020 and we concluded that, due to decreases in our forecasted results, an impairment evaluation for all reporting units was necessary. We performed the interim impairment test as of April 30, 2020 and elected to forego the optional qualitative assessment and performed a quantitative goodwill impairment test instead. We estimated the fair value of each reporting unit using a weighting of three valuation methodologies: the Income Approach, the Public Company Market Multiple Method, and the Similar Transactions Method with greatest weight placed on the Income Approach. The resulting reporting unit fair values were compared to each reporting unit's carrying value. As a result of the evaluation, we concluded that the fair value of each reporting unit exceeded its carrying value for all reporting units, other than France, by a range of 21% to 199%. For the France reporting unit, although fair value exceeded carrying value by only 8%, goodwill related to the France reporting unit was not impaired. We assessed whether there were new events or circumstances as of the quarter end date of June 30, 2020 to roll forward the interim test conclusion and determined there was no impairment at that date. The France reporting unit had $86.7 million of goodwill at June 30, 2020. Restricted Cash In France and Malaysia, we offer services to certain of our customers where we manage some or all of their cash supply chains. In connection with these offerings, we take temporary title to certain customers' cash, which is included as restricted cash in our financial statements due to customer agreement or regulation. In addition, in accordance with a revolving credit facility, we are required to maintain a restricted cash reserve of $5.0 million and, due to this contractual restriction, we have classified this amount as restricted cash. New Accounting Standards 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 financing leases (previously "capital leases") remains substantially unchanged. We adopted the standard effective January 1, 2019 and 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 elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed 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 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 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 as a reduction of 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 and did not result in a cumulative-effect adjustment to the opening balance of retained earnings. The standard had no impact on our debt-covenant compliance under our current agreements. 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 amendments in this ASU eliminate some disclosures that are no longer considered cost beneficial, modify/clarify the specific requirements of certain disclosures and add disclosure requirements for Level 3 fair value measurements. We adopted ASU 2018-13 effective January 1, 2020 and the standard did not have a significant impact on our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the way entities recognize impairment of many financial assets. This new guidance requires immediate recognition of estimated credit losses expected to occur over the life of the asset and incorporates estimated, forward-looking data when measuring lifetime Estimated Credit Losses (ECL). The standard was designed to provide greater transparency and understanding of credit risk by requiring enhanced financial statement disclosures which fall into three general categories: ECL estimate methodology and assumptions, quantitative information and metrics, and policy and process explanations. We adopted the standard using the modified retrospective transition method. Results for the reporting period beginning January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. We recognized a cumulative-effect adjustment decreasing retained earnings by $1.7 million on January 1, 2020. The adoption of the standard also resulted in expanded disclosures related to credit losses (see Note 10). In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod tax allocations and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 will be effective for us on January 1, 2021. We are currently evaluating the impact it will have on our financial statements.
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Revenue from contracts with customers |
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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, 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 assets are included in prepaid expenses and other on the condensed consolidated balance sheet. 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, which is included in accrued liabilities on the condensed consolidated balance sheet. 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 six months ended June 30, 2020 that was included in the January 1, 2020 contract liability balance was $9.4 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 $0.6 million in the six months ended June 30, 2020 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 June 30, 2020, the net capitalized costs to obtain contracts was $1.6 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 six months of 2020. 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.
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Segment information |
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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 |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 2019 or the first six months of 2020. Based on assumptions described in our Annual Report on Form 10-K for the year ended December 31, 2019, 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.
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Income taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxes
2020 Compared to U.S. Statutory Rate The effective income tax rate on continuing operations in the first six months of 2020 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 U.S. taxable income limitations, 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. 2019 Compared to U.S. Statutory Rate The effective income tax rate on continuing operations in the first six 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.
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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. G4S plc ("G4S") Acquisitions On February 26, 2020, we announced that we agreed to acquire the majority of the cash management operations of U.K.-based G4S, with closings planned in multiple phases in 2020. In March 2020, we acquired 100% of the capital stock of G4S International Logistics Group Limited, a company which directly or indirectly owns controlling interests in multiple businesses providing secure international transportation of valuables. In April 2020, we acquired cash management operations from G4S located in the Netherlands, Belgium, Ireland, Hong Kong, Cyprus, Romania, the Czech Republic, Malaysia and the Dominican Republic. In June 2020, we acquired G4S' cash management operations in the Philippines. For the majority of the acquisitions in the second quarter of 2020, we acquired 100% of the ownership interests. In Malaysia, the Dominican Republic and the Philippines, we acquired ownership interests of less than 100%. We believe that we meet the accounting criteria for consolidating these subsidiaries. In the aggregate, the purchase consideration for the G4S acquisitions in the first half of 2020 is $694.7 million. The operations we have acquired through June 30, 2020, which represent approximately 80% of the total estimated purchase price, generate approximately $690 million in annual revenues. The contingent consideration noted in the following table below is related to the acquisition of the Malaysia operations. The consideration will be paid when minimum dividend distributions are received by Brink's relating to cash on the balance sheets of the Malaysia subsidiaries as of the acquisition date. We used a probability-weighted approach to estimate the fair value of the contingent consideration. The fair value of the contingent consideration reflected in the table below is the full $38 million that remains potentially payable as of June 30, 2020 as we believe it is unlikely that the contingent consideration payments will be reduced. 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 in areas such as property and equipment, intangible assets, lease-related assets and liabilities, deferred taxes and goodwill. As a result, the allocation of the provisional purchase price may change in the future.
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 $134 million. Rodoban provides cash-in-transit, money processing and ATM services and generates annual revenues of approximately $80 million. The Rodoban business expanded our operations in southeastern Brazil and is 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 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. We finalized our purchase price accounting in the fourth quarter of 2019. There were no significant changes to our fair value estimates of the net assets acquired of Rodoban.
Other acquisitions in 2019 On June 12, 2019, we acquired 100% of the capital stock of Balance Innovations, LLC and its wholly owned subsidiary, Balance Innovations Services, Inc. (together "BI"). BI develops and licenses software that provides real-time data to optimize operations for general retail and convenience store industries throughout the United States and Canada. This acquisition enhances our ability to deliver technology-enabled, end-to-end retail cash management services. On June 14, 2019, we acquired 100% of the capital stock of Comercio Eletronico Facil Ltda. ("COMEF"), a Brazil-based company. COMEF offers bank correspondent services and bill payment processing and is expected to supplement our existing Brazilian payment services businesses. On September 30, 2019, we acquired 100% of the capital stock of Transportadora de Valores del Sur Limitada and its wholly owned subsidiary, TVS Pagos, Recaudos y Procesos S.A.S. (together "TVS"). TVS provides cash in transit and money processing services in Colombia. This acquisition is expected to provide opportunities for branch consolidation and route efficiencies and position our existing Colombian business as well as TVS to more effectively service our customers. The aggregate purchase price of these three business acquisitions (BI, COMEF and TVS) was approximately $49 million. Together, these three acquired operations have approximately 1,300 employees. For these three business acquisitions (BI, COMEF and TVS), we estimated fair values for the assets purchased and liabilities assumed as of the date of the acquisitions. These estimated amounts are aggregated in the following table. The determination of estimated fair value required management to make significant estimates and assumptions. We finalized our purchase price accounting in the second quarter of 2020 for BI and COMEF and there were no significant changes to our fair value estimates of the net assets acquired for these acquisitions. The amounts reported for TVS are considered provisional as we continue to finalize our purchase price allocation for that acquisition.
Actual and Pro forma disclosures Below are the actual results included in Brink's consolidated results for the businesses we acquired in the first six months of 2020.
The pro forma consolidated results of Brink’s presented below reflect a hypothetical ownership as of January 1, 2018 for the businesses we acquired during 2019 and a hypothetical ownership as of January 1, 2019 for the businesses we acquired in the first six months of 2020.
Acquisition costs We have incurred $16.1 million in transaction costs related to business acquisitions in the first six months of 2020 (compared to $1.9 million in the first six months of 2019). These costs are classified in the condensed consolidated statements of operations as selling, general and administrative expenses. Dispositions On January 1, 2020, we sold 100% of our ownership interest in a French security services company for a net sales price of approximately $11 million. We recognized a $4.7 million gain on the sale of this business, which is reported in interest and other nonoperating income (expense) in the condensed consolidated statements of operations. The French security services company was part of the Rest of World reportable segment and reported revenues of $3 million in 2019.
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 Marketable Securities We have investments in mutual funds and equity securities 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 material 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 June 30, 2020, the notional value of our short term outstanding foreign currency forward and swap contracts was $142 million, with average maturities of approximately one month. These foreign currency forward and swap contracts primarily offset exposures in the euro, the British pound and the Brazilian real and are not designated as hedges for accounting purposes. Accordingly, changes in their fair value are recorded immediately in earnings. At June 30, 2020, the fair value of our short term foreign currency contracts was an asset of approximately $3.9 million and was included in prepaid expenses and other on the condensed consolidated balance sheet. At December 31, 2019, the fair value of these foreign currency contracts was a net asset of approximately $0.6 million, of which $0.8 million was included in prepaid expenses and other and $0.2 million was included in accrued liabilities on the condensed consolidated balance sheet. Amounts under these contracts were recognized in other operating income (expense) and in interest and other nonoperating income and expense as follows:
In the first quarter of 2019, we entered into a long term cross currency swap contract to hedge exposure in Brazilian real, which is designated as a cash flow hedge for accounting purposes. At June 30, 2020, the notional value of this long term contract was $110 million with a weighted-average maturity of 2.1 years. At June 30, 2020, the fair value of the long term cross currency swap contract was a $29.2 million net asset, of which $3.9 million is included in prepaid expenses and other and $25.3 million is included in other assets on the condensed consolidated balance sheet. At December 31, 2019, the fair value of the long term cross currency swap contract was a $2.1 million net asset, of which a $4.9 million asset is included in other assets and a $2.8 million liability is included in accrued liabilities on the condensed consolidated balance sheet. Amounts under this contract were recognized in other operating income (expense) to offset transaction gains or losses and in interest expense as follows:
In the first quarter of 2016, we entered into two interest rate swaps to hedge cash flow risk associated with changes in variable interest rates and that are designated as cash flow hedges for accounting purposes. At June 30, 2020, the notional value of these contracts was $40 million with a remaining weighted-average maturity of 0.4 years. At June 30, 2020, the fair value of these interest rates swaps was a liability of $0.3 million and was included in accrued liabilities on the condensed consolidated balance sheet. At December 31, 2019, the fair value of these interest rate swaps was an asset of $0.2 million and was included in prepaid expenses and other on the condensed consolidated balance sheet. The effect of these swaps is included in interest expense and was not significant in the first six months of 2020 or 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 June 30, 2020, the notional value of these contracts was $400 million with a remaining weighted-average maturity of 1.8 years. At June 30, 2020, the fair value of these interest rate swaps was a net liability of $34.2 million, of which $9.6 million was included in accrued liabilities and $24.6 million was included in other liabilities on the condensed consolidated balance sheet. At December 31, 2019, the fair value of these interest rate swaps was a net liability of $15.0 million, of which $3.6 million was included in accrued liabilities and $11.4 million was included in other liabilities on the condensed consolidated balance sheet. The effect of these swaps is included in interest expense. The amounts recognized in the 2019 periods were not significant.
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. 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 six months of 2020.
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Debt |
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Debt | Debt
Long-Term Debt Senior Secured Credit Facility In April 2020, we amended our senior secured credit facility (the “Senior Secured Credit Facility”) with Bank of America, N.A. as administrative agent to increase the term loan borrowing by $590 million. After the amendment, the Senior Secured Credit Facility consisted of a $1 billion revolving credit facility (the "Revolving Credit Facility") and we had borrowed a total of $1,390 million of term loans thereunder (the "Term Loans"). Prior to the amendment, the balance of outstanding Term Loans was approximately $760 million. The proceeds of the incremental term loan borrowings were used to repay outstanding principal under the Revolving Credit Facility as well as certain fees, costs and expenses related to the closing of the G4S acquisition. In June 2020, we amended our Revolving Credit Facility to, among other things, change the methodology for calculating the company’s leverage ratio by using a net first lien leverage ratio (net secured debt leverage ratio) instead of a total net debt leverage ratio. Under the amended agreement, the maximum net first lien leverage ratio for the remainder of 2020 is 4.25x. The pricing grid in the Senior Secured Facility remains unchanged, except for the addition of a fifth tier if the total net debt leverage ratio equals or exceeds 4.0x. All Loans under the Revolving Credit Facility and the Term Loans will mature five years after the first amendment date (on February 8, 2024). Principal payments for the Term Loans are due quarterly in an amount equal to 1.25% of the initial loan amount with a final lump sum 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 June 30, 2020, $1,000 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 total net debt leverage ratio. The margin on LIBOR borrowings, which can range from 1.25% to 2.50%, was 1.75% at June 30, 2020. The margin on alternate base rate borrowings, which can range from 0.25% to 1.50%, was 0.75% as of June 30, 2020. We also pay an annual commitment fee on the unused portion of the Revolving Credit Facility based on the Company’s total net leverage ratio. The commitment fee, which can range from 0.15% to 0.35%, was 0.25% as of June 30, 2020. Senior Unsecured Notes In June 2020, we issued at par five-year senior unsecured notes (the "2020 Senior Notes") in the aggregate principal amount of $400 million. The 2020 Senior Notes will mature on July 15, 2025 and bear an annual interest rate of 5.5%. The 2020 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. In October 2017, we issued at par ten-year senior unsecured notes (the "2017 Senior Notes" and together with the 2020 Senior Notes, the "Senior Notes") in the aggregate principal amount of $600 million. The 2017 Senior Notes will mature on October 15, 2027 and bear an annual interest rate of 4.625%. The 2017 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 three committed letter of credit facilities totaling $58 million, of which approximately $12 million was available at June 30, 2020. At June 30, 2020, we had undrawn letters of credit and guarantees of $46 million issued under these facilities. A $10 million facility expires in April 2022, a $32 million facility expires in December 2022 and a $16 million facility expires in January 2024. We have two uncommitted letter of credit facilities totaling $55 million, of which approximately $33 million was available at June 30, 2020. At June 30, 2020, we had undrawn letters of credit and guarantees of $22 million issued under these facilities. A $40 million facility expires in December 2020 and a $15 million facility has no expiration date. 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 covenants at June 30, 2020.
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Credit losses Credit losses |
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Allowance for Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Credit losses | Credit losses We are exposed to credit losses primarily through sales of our Core and High-Value services to customers with operations in the U.S. as well as customers in more than 100 countries outside the U.S. We typically invoice our customers on a monthly basis and payment terms are generally between 30 and 60 days. We assess our financial assets on a pool basis by aggregating financial assets with similar risk characteristics. We have pooled the financial assets by geographical location, specifically by country, because of the similarities within each country such as customers, payment terms, and services offered. Loss experience is monitored for each pool and we determine historical loss rates for each pool. These historical loss rates are the main assumption used in estimating expected credit losses over the life of the financial assets. We monitor the aging of accounts receivables by country and write off any accounts that are deemed uncollectible. We also monitor any significant economic events to identify any current or expected trends and risks within a pool that could impact the collectability of outstanding accounts receivables balances that were not contemplated or relevant during a previous period. The following table is a rollforward of the allowance for bad debts for the six month period ending June 30, 2020. Allowance for doubtful accounts:
(a) The provision in 2020 includes a $10.6 million allowance related to the internal loss in our U.S global services operations. See Note 1 for details.
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Share-based compensation plans |
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Share-based Payment Arrangement [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 June 30, 2020 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. Prior to 2020, 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. In 2020, the retirement eligibility provisions for many employee awards were changed on a go-forward basis to require a six month notification period prior to actual retirement. For these awards, we recognize expense from the grant date to six months after the participant's retirement eligible 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 prior year periods. 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 contained 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 six months of 2020:
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 six months of 2020:
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 six months of 2020:
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 2020, the performance period is from January 1, 2020 to December 31, 2022. 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 2020, the performance period is from January 1, 2020 to December 31, 2022. The following table summarizes all PSU activity during the first six months of 2020:
Deferred Stock Units ("DSUs") We granted DSUs to our nonemployee directors in 2019 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 six months of 2020:
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Capital Stock |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Capital Stock Common Stock At June 30, 2020, we had 100 million shares of common stock authorized and 50.5 million shares issued and outstanding. Dividends We paid regular quarterly dividends on our common stock during the last two years. On July 17, 2020, the Board declared a regular quarterly dividend of 15 cents per share payable on September 1, 2020. 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 June 30, 2020, 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 On February 6, 2020, our board of directors authorized a $250 million share repurchase authorization that expires on December 31, 2021. The authorization replaces our previous $200 million repurchase program, authorized by the board of directors in May 2017, which expired December 31, 2019. Under the $200 million repurchase program, we repurchased 1.3 million shares for approximately $94 million, or an average cost of $69.35 per share. There was approximately $106 million remaining available under the $200 million repurchase program when it expired. Under the $250 million repurchase program, we are not obligated to repurchase any specific dollar amount or number of shares. 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. No shares have been repurchased under the $250 million share repurchase program. Shares Used to Calculate Earnings per Share
(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 containing only a service requirement 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 and 0.3 million in the six months ended June 30, 2020, and 0.3 million in the three months and 0.3 million in the six months ended June 30, 2019.
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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
Argentina Currency Conversions We have elected in the past and could continue in the future to repatriate cash from Brink's Argentina using different means to convert Argentine pesos into U.S. dollars. Conversions under these other market mechanisms have settled at rates that are generally less favorable than the rates at which we remeasured the financial statements of Brink's Argentina. The net cash flows from these transactions are treated as operating cash flows as the financial instruments are purchased specifically for resale and are generally sold within a short period of time from the date of purchase. We did not have any such conversions in the first six months of 2020 or 2019. Non-cash Investing and Financing Activities We acquired $19.4 million in armored vehicles and other equipment under financing lease arrangements in the first six months of 2020 compared to $30.5 million in armored vehicles and other equipment acquired under financing lease arrangements in the first six months of 2019. 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. In Malaysia, we offer ATM replenishment services to certain of our financial institution customers. Providing this service requires our Malaysia subsidiary to take temporary title to the cash received in advance of ATM replenishment. The cash for which we have temporary title is restricted and cannot be used for any other purpose other than to service our customers who participate in this service offering. In accordance with a revolving credit facility, we are required to maintain a restricted cash reserve of $5.0 million and, due to this contractual restriction, we have classified this amount as restricted cash. At June 30, 2020, we held $171.5 million of restricted cash ($10.3 million represented short-term borrowings, $87.4 million represented restricted cash held for customers, and $67.8 million represented accrued liabilities). At December 31, 2019, we held $158.0 million of restricted cash ($10.3 million represented short-term borrowings, $100.3 million represented restricted cash held for customers and $47.4 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 |
6 Months Ended |
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Jun. 30, 2020 | |
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.
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Reorganization and Restructuring |
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Reorganization and Restructuring | Reorganization and Restructuring Other Restructurings Management periodically implements restructuring actions in targeted sections of our business. As a result of these actions, we recognized net costs of $14.1 million in the first six months of 2019 and $44.6 million in the first six months of 2020, primarily severance costs. For the restructuring actions that have not yet been completed, we expect to incur additional costs between $5 million and $7 million in future periods. The following table summarizes the costs incurred, payments and utilization, and foreign currency exchange effects of other restructurings:
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Subsequent Events Subsequent Events |
6 Months Ended |
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Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisition of Cash Management Operations As discussed in Note 6, on February 26, 2020, we announced that we agreed to purchase the majority of the cash management operations from U.K.-based G4S plc, with closings planned in multiple phases in 2020. On July 6, 2020, we completed the acquisition of G4S cash operations in Indonesia. |
Basis of presentation (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
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, allowance for doubtful accounts, deferred tax assets, purchase price allocations and foreign currency translation. |
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 5% of our consolidated revenues for the first six months of 2020 and 6% of our consolidated revenues for the first six months of 2019. The operating environment in Argentina continues to present business challenges, including ongoing devaluation of the Argentine peso and significant inflation. In the first six months of 2020 and 2019, the Argentine peso declined approximately 15% (from 59.9 to 70.4 pesos to the U.S. dollar) and approximately 12% (from 37.6 to 42.6 pesos to the U.S. dollar), respectively. For the year ended December 31, 2019, the Argentine peso declined approximately 37% (from 37.6 to 59.9 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 first six months of 2020, we recognized a $3.5 million pretax remeasurement loss. In the first six months of 2019, we recognized a $3.4 million pretax remeasurement loss. At June 30, 2020, Argentina's economy remains highly inflationary for accounting purposes. At June 30, 2020, we had net monetary assets denominated in Argentine pesos of $25.0 million (including cash of $21.1 million). At June 30, 2020, we had net nonmonetary assets of $149.2 million (including $99.8 million of goodwill). At June 30, 2020, we had no equity securities denominated in Argentine pesos. During September 2019, the Argentine government announced currency controls on both companies and individuals. The Argentine central bank issued details as to how the exchange control procedures would operate in practice. Under these procedures, central bank approval is required for many transactions, including dividend repatriation abroad. We have in the past and may elect in the future to utilize other market mechanisms to convert Argentine pesos into U.S. dollars. Conversions under these other market mechanisms have settled at rates that are generally less favorable than the rates at which we remeasured the financial statements of Brink's Argentina. We did not have any such conversions losses in the six months ended June 30, 2020. Although the Argentine government has implemented currency controls, Brink’s management continues to provide guidance and strategic oversight, including budgeting and forecasting for Brink’s Argentina. We continue to control our Argentina business for purposes of consolidation of our financial statements and continue to monitor the situation in Argentina. Venezuela Our Venezuelan operations offer transportation and route-based logistics management services for cash and valuables throughout Venezuela. Currency exchange regulations, combined with other government regulations, such as price controls and strict labor laws, significantly limit our ability to make and execute operational decisions at our Venezuelan subsidiaries. As a result of these conditions, we do not meet the accounting criteria for control over our Venezuelan operations and, as a result, we report the results of our investment in our Venezuelan subsidiaries using the cost method of accounting, the basis of which approximates zero. Prior to the imposition of the U.S. government sanctions in 2019, we provided immaterial amounts of financial support to our Venezuela operations. We continue to monitor the situation in Venezuela, including the imposition of sanctions by the U.S. government targeting Venezuela.
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New Accounting Standards | New Accounting Standards 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 financing leases (previously "capital leases") remains substantially unchanged. We adopted the standard effective January 1, 2019 and 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 elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed 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 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 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 as a reduction of 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 and did not result in a cumulative-effect adjustment to the opening balance of retained earnings. The standard had no impact on our debt-covenant compliance under our current agreements. 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 amendments in this ASU eliminate some disclosures that are no longer considered cost beneficial, modify/clarify the specific requirements of certain disclosures and add disclosure requirements for Level 3 fair value measurements. We adopted ASU 2018-13 effective January 1, 2020 and the standard did not have a significant impact on our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the way entities recognize impairment of many financial assets. This new guidance requires immediate recognition of estimated credit losses expected to occur over the life of the asset and incorporates estimated, forward-looking data when measuring lifetime Estimated Credit Losses (ECL). The standard was designed to provide greater transparency and understanding of credit risk by requiring enhanced financial statement disclosures which fall into three general categories: ECL estimate methodology and assumptions, quantitative information and metrics, and policy and process explanations. We adopted the standard using the modified retrospective transition method. Results for the reporting period beginning January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. We recognized a cumulative-effect adjustment decreasing retained earnings by $1.7 million on January 1, 2020. The adoption of the standard also resulted in expanded disclosures related to credit losses (see Note 10). In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod tax allocations and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 will be effective for us on January 1, 2021. We are currently evaluating the impact it will have on our financial statements.
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Revenue from contracts with customers Revenue from contracts with customers (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | The amount of revenue recognized in the six months ended June 30, 2020 that was included in the January 1, 2020 contract liability balance was $9.4 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 $0.6 million in the six months ended June 30, 2020 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 June 30, 2020, the net capitalized costs to obtain contracts was $1.6 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 six months of 2020. 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, 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 assets are included in prepaid expenses and other on the condensed consolidated balance sheet. 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, which is included in accrued liabilities on the condensed consolidated balance sheet. 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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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Reconciliation of Assets from Segment to Consolidated [Table Text Block] |
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Retirement benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) |
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Acquisitions and Dispositions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
(b) Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating these acquired operations into our existing operations. The goodwill from these acquisitions have been assigned to the following reporting units: BI (U.S.), COMEF (Brazil) and TVS (Global Markets - South America). We expect goodwill related to BI to be deductible for tax purposes. We do not expect goodwill related to COMEF or TVS to be deductible for tax purposes.
(b) Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating G4S operations with our existing operations. Goodwill has been provisionally assigned to the Global Markets-EMEA reporting unit ($257 million), the Global Markets-Asia reporting unit ($97 million) and the Global Markets-South America reporting unit ($5 million). Approximately $12 million of goodwill has not been assigned to a reporting unit as of June 30, 2020. We do not currently expect goodwill in these reporting units to be deductible for tax purposes.
(b) 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.
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Business Acquisition, Pro Forma Information | Below are the actual results included in Brink's consolidated results for the businesses we acquired in the first six months of 2020.
The pro forma consolidated results of Brink’s presented below reflect a hypothetical ownership as of January 1, 2018 for the businesses we acquired during 2019 and a hypothetical ownership as of January 1, 2019 for the businesses we acquired in the first six months of 2020.
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Accumulated other comprehensive income (loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
• interest expense ($2.4 million of expense in the three months ended June 30, 2020 and $1.3 million of expense in the three months ended June 30, 2019; as well as $3.9 million of expense in the six months ended June 30, 2020 and $2.5 million of expense in the six months ended June 30, 2019).
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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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The fair value and carrying value of our material fixed-rate debt are as follows:
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Derivatives Not Designated as Hedging Instruments [Table Text Block] | Amounts under these contracts were recognized in other operating income (expense) and in interest and other nonoperating income and expense as follows:
(a) Represents loss on foreign currency forward contracts related to 2020 acquisition of business operations from G4S.
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Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | Amounts under this contract were recognized in other operating income (expense) to offset transaction gains or losses and in interest expense as follows:
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Schedule of Interest Rate Derivatives [Table Text Block] | The effect of these swaps is included in interest expense. The amounts recognized in the 2019 periods were not significant.
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Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt |
(c) Amounts outstanding are net of unamortized debt costs of $13.4 million as of June 30, 2020 and $7.1 million as of December 31, 2019.
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Credit losses Credit losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Allowance for Credit Loss | Allowance for doubtful accounts:
(a) The provision in 2020 includes a $10.6 million allowance related to the internal loss in our U.S global services operations. See Note 1 for details.
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Share-based compensation plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [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 six months of 2020:
The following table summarizes time-based stock option activity during the first six months of 2020:
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Nonvested share activity | The following table summarizes RSU activity during the first six months of 2020:
The following table summarizes all PSU activity during the first six months of 2020:
(b) 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, 2019 were 394.0 thousand, compared to target shares of 204.3 thousand. The following table summarizes all DSU activity during the first six months of 2020:
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Capital Stock (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares | Shares Used to Calculate Earnings per Share
(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 containing only a service requirement 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 and 0.3 million in the six months ended June 30, 2020, and 0.3 million in the three months and 0.3 million in the six months ended June 30, 2019.
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Supplemental cash flow information (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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.
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Reorganization and Restructuring Reorganization and Restructuring (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the costs incurred, payments and utilization, and foreign currency exchange effects of other restructurings:
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Basis of presentation (Details) |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
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Jun. 30, 2020
USD ($)
$ / $
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Dec. 31, 2019
USD ($)
$ / $
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Sep. 30, 2019
USD ($)
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Jun. 30, 2019
USD ($)
$ / $
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Jun. 30, 2020
USD ($)
segment
$ / $
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Jun. 30, 2019
USD ($)
$ / $
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Dec. 31, 2019
USD ($)
$ / $
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Mar. 31, 2020
USD ($)
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[1] |
Jan. 01, 2020
USD ($)
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Mar. 31, 2019
USD ($)
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[2] |
Jan. 01, 2019
USD ($)
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Dec. 31, 2018
$ / $
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Number of operating segments | segment | 3 | |||||||||||||||||
Net monetary assets | $ 1,675,100,000 | $ 1,232,600,000 | $ 1,675,100,000 | $ 1,232,600,000 | ||||||||||||||
Cash and cash equivalents | 531,300,000 | 311,000,000.0 | 531,300,000 | 311,000,000.0 | ||||||||||||||
Goodwill | 1,114,000,000.0 | 784,600,000 | 1,114,000,000.0 | 784,600,000 | ||||||||||||||
Revenues | 826,000,000.0 | $ 914,000,000.0 | 1,698,800,000 | $ 1,819,000,000.0 | ||||||||||||||
Provision for doubtful accounts | 43,500,000 | 30,200,000 | 43,500,000 | 30,200,000 | ||||||||||||||
Restricted cash | 171,500,000 | 158,000,000.0 | 171,500,000 | 158,000,000.0 | ||||||||||||||
Right-of-use assets, net | $ 329,800,000 | $ 270,300,000 | $ 329,800,000 | $ 270,300,000 | ||||||||||||||
Cumulative effect of change in accounting principle | $ (1,700,000) | $ 0 | ||||||||||||||||
Argentina, Pesos | Argentina | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Percent of Consolidated Revenue | 5.00% | 6.00% | ||||||||||||||||
Rate decrease percent | 15.00% | 37.00% | 12.00% | 15.00% | 12.00% | 37.00% | ||||||||||||
Official exchange rate | $ / $ | 70.4 | 59.9 | 42.6 | 70.4 | 42.6 | 59.9 | 37.6 | |||||||||||
Net remeasurement loss | $ (3,500,000) | $ 3,400,000 | ||||||||||||||||
Net monetary assets | $ 25,000,000.0 | 25,000,000.0 | ||||||||||||||||
Cash and cash equivalents | 21,100,000 | 21,100,000 | ||||||||||||||||
Nonmonetary assets | 149,200,000 | 149,200,000 | ||||||||||||||||
Goodwill | 99,800,000 | 99,800,000 | ||||||||||||||||
Equity Securities | 0 | 0 | ||||||||||||||||
Retained Earnings | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Cumulative effect of change in accounting principle | $ (1,700,000) | $ 28,800,000 | ||||||||||||||||
Accounting Standards Update 2016-02 | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Right-of-use assets, net | $ 310,100,000 | |||||||||||||||||
Lease liabilities | 320,300,000 | |||||||||||||||||
Accounting Standards Update 2018-02 | Retained Earnings | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Cumulative effect of change in accounting principle | $ 28,800,000 | |||||||||||||||||
Accounting Standards Update 2016-13 | Retained Earnings | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Cumulative effect of change in accounting principle | $ 1,700,000 | |||||||||||||||||
Internal Loss AR Rebuild | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Third-party expense | 200,000 | $ 4,500,000 | ||||||||||||||||
Revenues | $ 4,000,000.0 | |||||||||||||||||
Bank fees | 300,000 | |||||||||||||||||
Increase to bad debt expense | $ 6,400,000 | $ 13,700,000 | 10,600,000 | |||||||||||||||
Provision for doubtful accounts | 21,600,000 | 21,600,000 | ||||||||||||||||
Accounts receivable | $ 25,000,000.0 | $ 25,000,000.0 | ||||||||||||||||
Percent of Accounts Receivable | 86.00% | 86.00% | ||||||||||||||||
FRANCE | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Goodwill | $ 86,700,000 | $ 86,700,000 | ||||||||||||||||
Percentage of Fair Value in Excess of Carrying Amount | 8.00% | 8.00% | ||||||||||||||||
Minimum | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Percentage of Fair Value in Excess of Carrying Amount | 21.00% | 21.00% | ||||||||||||||||
Maximum | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Percentage of Fair Value in Excess of Carrying Amount | 199.00% | 199.00% | ||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||
Restricted cash | $ 5,000,000.0 | $ 5,000,000.0 | ||||||||||||||||
|
Revenue from contracts with customers - disaggregation of revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | $ 826.0 | $ 914.0 | $ 1,698.8 | $ 1,819.0 |
Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 486.7 | 971.1 | ||
High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 390.8 | 775.5 | ||
Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 36.5 | 72.4 | ||
Reportable segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 826.0 | 914.3 | 1,698.8 | 1,819.3 |
Reportable segments | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 420.1 | 486.7 | 876.7 | 971.1 |
Reportable segments | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 365.4 | 391.1 | 747.2 | 775.8 |
Reportable segments | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 40.5 | 36.5 | 74.9 | 72.4 |
Reportable segments | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 349.1 | 442.5 | 793.4 | 877.0 |
Reportable segments | North America | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 204.0 | 279.8 | 478.2 | 557.0 |
Reportable segments | North America | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 145.1 | 162.7 | 315.2 | 320.0 |
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 | 0.0 | 0.0 |
Reportable segments | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 158.9 | 225.2 | 356.8 | 455.5 |
Reportable segments | South America | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 87.1 | 118.8 | 187.5 | 238.0 |
Reportable segments | South America | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 67.7 | 104.0 | 161.5 | 212.1 |
Reportable segments | South America | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 4.1 | 2.4 | 7.8 | 5.4 |
Reportable segments | Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 318.0 | 246.6 | 548.6 | 486.8 |
Reportable segments | Rest of World | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 129.0 | 88.1 | 211.0 | 176.1 |
Reportable segments | Rest of World | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 152.6 | 124.4 | 270.5 | 243.7 |
Reportable segments | Rest of World | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue disaggregated by reportable segment and type of service | 36.4 | 34.1 | 67.1 | 67.0 |
Segment Reconciling Items | ||||
Disaggregation of Revenue [Line Items] | ||||
Acquisitions and dispositions, Revenues | $ 0.0 | (0.3) | $ 0.0 | (0.3) |
Segment Reconciling Items | Core services | ||||
Disaggregation of Revenue [Line Items] | ||||
Acquisitions and dispositions, Revenues | 0.0 | 0.0 | ||
Segment Reconciling Items | High-value services | ||||
Disaggregation of Revenue [Line Items] | ||||
Acquisitions and dispositions, Revenues | (0.3) | (0.3) | ||
Segment Reconciling Items | Other security services | ||||
Disaggregation of Revenue [Line Items] | ||||
Acquisitions and dispositions, Revenues | $ 0.0 | $ 0.0 |
Revenue from contracts with customers Revenue from contracts with customers - contract balances (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 695.0 | $ 635.6 |
Receivable - increase (decrease) | 59.4 | |
Contract Asset | 1.4 | 1.9 |
Contract asset increase (decrease) | (0.5) | |
Contract Liability | 11.9 | $ 12.8 |
Contract liability - increase (decrease) | (0.9) | |
Revenue recognized included in beginning balance | 9.4 | |
Revenue - revenue from performance obligation in prior periods | 0.6 | |
Capitalized costs to obtain contracts | $ 1.6 |
Segment information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 826.0 | $ 914.0 | $ 1,698.8 | $ 1,819.0 | ||
Operating Profit | (1.0) | 52.6 | 25.2 | 111.0 | ||
Foreign currency transaction gains (losses) | (3.5) | (3.4) | ||||
Reportable segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 826.0 | 914.3 | 1,698.8 | 1,819.3 | ||
Operating Profit | 82.4 | 117.6 | 172.0 | 228.4 | ||
Corporate expenses | ||||||
Segment Reporting Information [Line Items] | ||||||
General, administrative and other expenses | (24.6) | (32.5) | (51.9) | (59.6) | ||
Foreign currency transaction gains (losses) | (0.9) | (0.3) | (3.6) | 0.6 | ||
Reconciliation of segment policies to GAAP(a) | 16.3 | 4.0 | 19.8 | 4.2 | ||
Other items not allocated to segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Acquisitions and dispositions, Revenues | 0.0 | (0.3) | 0.0 | (0.3) | ||
Reorganization and Restructuring | (39.0) | (10.6) | (44.6) | (14.1) | ||
Acquisitions and dispositions, Operating profit | (30.9) | (22.6) | (50.0) | (39.8) | ||
Reporting compliance | (0.3) | (0.3) | (0.5) | (1.7) | ||
Other items not allocated to segments | Argentina | ||||||
Segment Reporting Information [Line Items] | ||||||
Argentina highly inflationary impact | (2.8) | (0.1) | (5.2) | (4.4) | ||
North America | Reportable segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 349.1 | 442.5 | 793.4 | 877.0 | ||
Operating Profit | 17.9 | 46.4 | 50.9 | 90.4 | ||
South America | Reportable segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 158.9 | 225.2 | 356.8 | 455.5 | ||
Operating Profit | 33.1 | 45.0 | 74.7 | 88.0 | ||
Rest of World | Reportable segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 318.0 | 246.6 | 548.6 | 486.8 | ||
Operating Profit | 31.4 | 26.2 | 46.4 | 50.0 | ||
Internal Loss AR Rebuild | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 4.0 | |||||
Internal loss | $ (6.4) | $ (13.7) | (10.6) | |||
Internal Loss AR Rebuild | Other items not allocated to segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 0.0 | 0.0 | 0.0 | 0.0 | ||
Internal loss | $ (1.2) | $ (2.6) | $ (10.8) | $ (2.6) |
Segment information Segment information - Assets by Reportable Segments (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Assets held by Reportable Segment | $ 4,771.2 | $ 3,763.8 |
Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Assets held by Reportable Segment | 4,328.7 | 3,495.9 |
Corporate items | ||
Segment Reporting Information [Line Items] | ||
Assets held by Reportable Segment | 442.5 | 267.9 |
North America | Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Assets held by Reportable Segment | 1,598.4 | 1,683.0 |
South America | Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Assets held by Reportable Segment | 730.7 | 806.1 |
Rest of World | Reportable segments | ||
Segment Reporting Information [Line Items] | ||
Assets held by Reportable Segment | $ 1,999.6 | $ 1,006.8 |
Retirement benefits - Retirement Cost (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3.0 | $ 2.4 | $ 5.9 | $ 4.9 |
Interest cost on projected benefit obligation | 9.6 | 11.2 | 18.6 | 22.3 |
Return on assets – expected | (14.7) | (15.3) | (28.8) | (30.6) |
Amortization of losses | 8.4 | 5.8 | 16.5 | 11.8 |
Amortization of prior service credit | 0.0 | 0.1 | 0.0 | 0.1 |
Settlement loss | 0.1 | 0.6 | 0.5 | 0.9 |
Net periodic pension cost | 6.4 | 4.8 | 12.7 | 9.4 |
Retirement benefits other than pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.1 | 0.1 | 0.1 | 0.1 |
Interest cost on projected benefit obligation | 4.1 | 5.0 | 8.3 | 10.9 |
Return on assets – expected | (3.2) | (3.3) | (6.5) | (6.6) |
Amortization of losses | 6.2 | 5.0 | 12.2 | 11.2 |
Amortization of prior service credit | (1.3) | (1.3) | (2.5) | (2.5) |
Net periodic pension cost | 5.9 | 5.5 | 11.6 | 13.1 |
U.S. Plans | Pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.0 | 0.0 | 0.0 | 0.0 |
Interest cost on projected benefit obligation | 6.7 | 8.6 | 13.3 | 17.1 |
Return on assets – expected | (11.6) | (12.7) | (23.1) | (25.4) |
Amortization of losses | 7.2 | 4.8 | 14.1 | 9.8 |
Amortization of prior service credit | 0.0 | 0.0 | 0.0 | 0.0 |
Settlement loss | 0.0 | 0.0 | 0.0 | 0.0 |
Net periodic pension cost | 2.3 | 0.7 | 4.3 | 1.5 |
Non-U.S. Plans | Pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 3.0 | 2.4 | 5.9 | 4.9 |
Interest cost on projected benefit obligation | 2.9 | 2.6 | 5.3 | 5.2 |
Return on assets – expected | (3.1) | (2.6) | (5.7) | (5.2) |
Amortization of losses | 1.2 | 1.0 | 2.4 | 2.0 |
Amortization of prior service credit | 0.0 | 0.1 | 0.0 | 0.1 |
Settlement loss | 0.1 | 0.6 | 0.5 | 0.9 |
Net periodic pension cost | 4.1 | 4.1 | 8.4 | 7.9 |
UMWA Plans | Retirement benefits other than pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.0 | 0.0 | ||
Interest cost on projected benefit obligation | 3.1 | 4.1 | 6.4 | 9.1 |
Return on assets – expected | (3.2) | (3.3) | (6.5) | (6.6) |
Amortization of losses | 4.1 | 3.8 | 8.1 | 8.9 |
Amortization of prior service credit | (1.1) | (1.2) | (2.3) | (2.3) |
Net periodic pension cost | 2.9 | 3.4 | 5.7 | 9.1 |
Black Lung and Other Plans | Retirement benefits other than pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.1 | 0.1 | 0.1 | 0.1 |
Interest cost on projected benefit obligation | 1.0 | 0.9 | 1.9 | 1.8 |
Return on assets – expected | 0.0 | 0.0 | 0.0 | 0.0 |
Amortization of losses | 2.1 | 1.2 | 4.1 | 2.3 |
Amortization of prior service credit | (0.2) | (0.1) | (0.2) | (0.2) |
Net periodic pension cost | $ 3.0 | $ 2.1 | $ 5.9 | $ 4.0 |
Income taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for income taxes (in millions) | $ (43.2) | $ 12.7 | $ (55.4) | $ 22.4 |
Effective tax rate | 158.80% | 47.40% | 151.40% | 43.90% |
Acquisitions and Dispositions - Acquired Entities (Details) $ in Millions |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Apr. 01, 2020 |
Mar. 09, 2020
USD ($)
|
Sep. 30, 2019 |
Jun. 14, 2019 |
Jun. 12, 2019 |
Jan. 04, 2019
USD ($)
employee
vehicle
branch
|
Jun. 30, 2020
USD ($)
employee
acquisition
|
Dec. 31, 2019
USD ($)
|
|
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Restricted cash | $ 171.5 | $ 158.0 | ||||||
Right-of-use assets, net | 329.8 | 270.3 | ||||||
Goodwill | 1,114.0 | $ 784.6 | ||||||
Fair value of noncontrolling interest | $ (67.8) | |||||||
G4Si | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition date | Mar. 09, 2020 | |||||||
Percentage of shares acquired | 100.00% | |||||||
G4S | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition date | Apr. 01, 2020 | |||||||
Percentage of shares acquired | 100.00% | |||||||
Percentage of total purchase price | 80.00% | |||||||
Annual revenues | $ 690.0 | |||||||
Goodwill not allocated | $ 12.0 | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Purchase consideration - cash paid | 651.2 | |||||||
Contingent consideration | 38.0 | |||||||
Liabilities assumed from seller | 9.4 | |||||||
Receivable from seller | (3.9) | |||||||
Fair value of purchase consideration | $ 694.7 | 694.7 | ||||||
Cash | 214.3 | |||||||
Restricted cash | 30.1 | |||||||
Accounts receivable | 129.5 | |||||||
Other current assets | 22.6 | |||||||
Property and equipment, net | 123.1 | |||||||
Right-of-use assets, net | 72.0 | |||||||
Intangible assets | 157.7 | |||||||
Goodwill | 370.3 | |||||||
Other noncurrent assets | 19.3 | |||||||
Current liabilities | (229.8) | |||||||
Lease liabilities | (58.2) | |||||||
Noncurrent liabilities | (88.4) | |||||||
Fair value of net assets acquired | $ 762.5 | |||||||
G4S Tranche III | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of shares acquired | 100.00% | |||||||
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 | $ 135.7 | |||||||
Indemnification asset | (1.9) | |||||||
Fair value of purchase consideration | 133.8 | |||||||
Cash | 1.4 | |||||||
Accounts receivable | 8.9 | |||||||
Other current assets | 0.5 | |||||||
Property and equipment, net | 2.4 | |||||||
Intangible assets | 49.0 | |||||||
Goodwill | 85.1 | |||||||
Other noncurrent assets | 5.8 | |||||||
Current liabilities | (11.4) | |||||||
Noncurrent liabilities | (7.9) | |||||||
Fair value of net assets acquired | 133.8 | |||||||
Other Acquisitions | ||||||||
Business Acquisition [Line Items] | ||||||||
Entity number of employees | employee | 1,300 | |||||||
Number of Businesses Acquired | acquisition | 3 | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Purchase consideration - cash paid | $ 60.2 | |||||||
Contingent consideration | 1.6 | |||||||
Indemnification asset | (12.9) | |||||||
Fair value of purchase consideration | 48.9 | |||||||
Cash | 6.5 | |||||||
Accounts receivable | 4.5 | |||||||
Property and equipment, net | 7.1 | |||||||
Intangible assets | 24.4 | |||||||
Goodwill | 33.8 | |||||||
Other noncurrent assets | 1.9 | |||||||
Current liabilities | (15.2) | |||||||
Noncurrent liabilities | (14.1) | |||||||
Fair value of net assets acquired | $ 48.9 | |||||||
BI | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition date | Jun. 12, 2019 | |||||||
Percentage of shares acquired | 100.00% | |||||||
COMEF | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition date | Jun. 14, 2019 | |||||||
Percentage of shares acquired | 100.00% | |||||||
TVS | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition date | Sep. 30, 2019 | |||||||
Percentage of shares acquired | 100.00% | |||||||
Customer relationships | G4S | ||||||||
Business Acquisition [Line Items] | ||||||||
Remaining Amortization Period | 15 years | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Intangible assets | $ 158.0 | |||||||
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 | 47.0 | |||||||
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 | |||||||
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 | |||||||
EMEA | G4S | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Goodwill | $ 257.0 | |||||||
Asia Pacific | G4S | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Goodwill | 97.0 | |||||||
South America | G4S | ||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Goodwill | $ 5.0 |
Acquisitions and Dispositions - Pro Forma (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
|
Business Acquisition [Line Items] | |||||
Actual revenue results included in consolidation | $ 123.5 | $ 128.9 | |||
Actual net income results included in consolidation | 2.6 | 3.0 | |||
Revenues | 826.0 | $ 914.0 | 1,698.8 | $ 1,819.0 | |
Net income (loss) attributable to Brink’s | 12.9 | 12.5 | 14.7 | 26.2 | |
Pro forma revenue results | 845.5 | 1,095.5 | 1,865.3 | 2,186.5 | |
Pro forma net income results | 12.7 | 15.3 | 13.3 | 31.8 | |
Transaction costs | 16.1 | 16.1 | $ 1.9 | ||
G4S | |||||
Business Acquisition [Line Items] | |||||
Actual revenue results included in consolidation | 123.5 | 128.9 | |||
Actual net income results included in consolidation | 2.6 | 3.0 | |||
Pro forma revenue results | 19.5 | 172.5 | 166.5 | 345.0 | |
Pro forma net income results | $ (0.2) | 2.3 | $ (1.4) | 4.6 | |
Rodoban | |||||
Business Acquisition [Line Items] | |||||
Pro forma revenue results | 0.6 | ||||
Pro forma net income results | 0.0 | ||||
Other Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Pro forma revenue results | 9.0 | 21.9 | |||
Pro forma net income results | $ 0.5 | $ 1.0 |
Acquisitions and Dispositions Acquisitions and Dispositions - Dispositions (Details) - France security services company - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jan. 01, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Date | Jan. 01, 2020 | ||
Percent of shares sold | 100.00% | ||
Net sales price | $ 11.0 | ||
Gain on sale of business | $ 4.7 | ||
Annual revenues | $ 3.0 |
Accumulated other comprehensive income (loss) - Amounts in OCI (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Other Comprehensive Income Loss [Line Items] | ||||||
Amounts Arising During the Current Period, Pretax | $ 25.3 | $ (7.4) | $ (80.8) | $ (13.4) | ||
Amounts Arising During the Current Period, Income Tax | 0.3 | 4.3 | (4.9) | 5.6 | ||
Amounts Reclassified to Net Income (Loss), Pretax | 12.2 | 13.8 | 0.8 | 22.5 | ||
Amounts Reclassified to Net Income (Loss), Income Tax | (2.6) | (3.6) | 2.7 | (5.4) | ||
Other comprehensive income (loss) | 35.2 | $ (117.4) | 7.1 | $ 2.2 | (82.2) | 9.3 |
Cost of revenues | 683.9 | 708.5 | 1,377.3 | 1,411.2 | ||
Selling, general and administrative expenses | 139.6 | 154.6 | 287.7 | 296.3 | ||
Interest and other income (expense) | (3.0) | (3.1) | (18.6) | (14.3) | ||
Other operating income (expense) | 3.5 | (1.7) | 8.6 | 0.5 | ||
Interest expense | 23.2 | 22.7 | 43.2 | 45.7 | ||
Benefit plan adjustments | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Amounts Arising During the Current Period, Pretax | (1.5) | (2.3) | 2.7 | (3.6) | ||
Amounts Arising During the Current Period, Income Tax | 0.2 | 0.4 | 0.3 | 0.6 | ||
Amounts Reclassified to Net Income (Loss), Pretax | 13.4 | 10.2 | 26.7 | 21.5 | ||
Amounts Reclassified to Net Income (Loss), Income Tax | (3.3) | (2.4) | (6.4) | (5.1) | ||
Other comprehensive income (loss) | 8.8 | 5.9 | 23.3 | 13.4 | ||
Foreign currency translation adjustments | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Amounts Arising During the Current Period, Pretax | 27.2 | 9.0 | (92.7) | 9.3 | ||
Amounts Arising During the Current Period, Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||
Amounts Reclassified to Net Income (Loss), Pretax | 0.0 | 0.0 | 0.0 | 0.0 | ||
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||
Other comprehensive income (loss) | 27.2 | 9.0 | (92.7) | 9.3 | ||
Gains (losses) on cash flow hedges | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Amounts Arising During the Current Period, Pretax | (1.4) | (14.2) | 8.6 | (19.5) | ||
Amounts Arising During the Current Period, Income Tax | 0.1 | 3.9 | (5.2) | 5.0 | ||
Amounts Reclassified to Net Income (Loss), Pretax | (1.2) | 3.6 | (25.9) | 1.0 | ||
Amounts Reclassified to Net Income (Loss), Income Tax | 0.7 | (1.2) | 9.1 | (0.3) | ||
Other comprehensive income (loss) | (1.8) | (7.9) | (13.4) | (13.8) | ||
Gains (losses) on cash flow hedges | Reclassification out of accumulated other comprehensive income | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Other operating income (expense) | (3.7) | 2.4 | (29.8) | (1.4) | ||
Interest expense | 2.4 | 1.3 | 3.9 | 2.5 | ||
AOCI Attributable to Parent | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Amounts Arising During the Current Period, Pretax | 24.3 | (7.5) | (81.4) | (13.8) | ||
Amounts Arising During the Current Period, Income Tax | 0.3 | 4.3 | (4.9) | 5.6 | ||
Amounts Reclassified to Net Income (Loss), Pretax | 12.2 | 13.8 | 0.8 | 22.5 | ||
Amounts Reclassified to Net Income (Loss), Income Tax | (2.6) | (3.6) | 2.7 | (5.4) | ||
Other comprehensive income (loss) | 34.2 | $ (117.0) | 7.0 | $ 1.9 | (82.8) | 8.9 |
Foreign currency translation adjustments | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Amounts Arising During the Current Period, Pretax | 1.0 | 0.1 | 0.6 | 0.4 | ||
Amounts Arising During the Current Period, Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||
Amounts Reclassified to Net Income (Loss), Pretax | 0.0 | 0.0 | 0.0 | 0.0 | ||
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||
Other comprehensive income (loss) | 1.0 | 0.1 | 0.6 | 0.4 | ||
AOCI Attributable to Noncontrolling Interest | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Amounts Arising During the Current Period, Pretax | 1.0 | 0.1 | 0.6 | 0.4 | ||
Amounts Arising During the Current Period, Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||
Amounts Reclassified to Net Income (Loss), Pretax | 0.0 | 0.0 | 0.0 | 0.0 | ||
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||
Other comprehensive income (loss) | 1.0 | 0.1 | 0.6 | 0.4 | ||
Benefit plan adjustments(a) | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Amounts Arising During the Current Period, Pretax | (1.5) | (2.3) | 2.7 | (3.6) | ||
Amounts Arising During the Current Period, Income Tax | 0.2 | 0.4 | 0.3 | 0.6 | ||
Amounts Reclassified to Net Income (Loss), Pretax | 13.4 | 10.2 | 26.7 | 21.5 | ||
Amounts Reclassified to Net Income (Loss), Income Tax | (3.3) | (2.4) | (6.4) | (5.1) | ||
Other comprehensive income (loss) | 8.8 | 5.9 | 23.3 | 13.4 | ||
Benefit plan adjustments(a) | Reclassification out of accumulated other comprehensive income | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Cost of revenues | 2.6 | 1.9 | 5.0 | 3.8 | ||
Selling, general and administrative expenses | 0.5 | 0.6 | 1.0 | 1.2 | ||
Interest and other income (expense) | 9.2 | 7.8 | 18.3 | 17.5 | ||
Foreign currency translation adjustments | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Amounts Arising During the Current Period, Pretax | 28.2 | 9.1 | (92.1) | 9.7 | ||
Amounts Arising During the Current Period, Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||
Amounts Reclassified to Net Income (Loss), Pretax | 0.0 | 0.0 | 0.0 | 0.0 | ||
Amounts Reclassified to Net Income (Loss), Income Tax | 0.0 | 0.0 | 0.0 | 0.0 | ||
Other comprehensive income (loss) | 28.2 | 9.1 | (92.1) | 9.7 | ||
Gains (losses) on cash flow hedges(c) | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Amounts Arising During the Current Period, Pretax | (1.4) | (14.2) | 8.6 | (19.5) | ||
Amounts Arising During the Current Period, Income Tax | 0.1 | 3.9 | (5.2) | 5.0 | ||
Amounts Reclassified to Net Income (Loss), Pretax | (1.2) | 3.6 | (25.9) | 1.0 | ||
Amounts Reclassified to Net Income (Loss), Income Tax | 0.7 | (1.2) | 9.1 | (0.3) | ||
Other comprehensive income (loss) | $ (1.8) | $ (7.9) | $ (13.4) | $ (13.8) |
Accumulated other comprehensive income (loss) - Reclasses Out Of AOCI (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning balance | $ 191.8 | $ 191.8 | ||||
Other comprehensive income (loss) | $ 35.2 | (117.4) | $ 7.1 | $ 2.2 | (82.2) | $ 9.3 |
Ending balance | 111.3 | 111.3 | ||||
Benefit Plan Adjustments | ||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning balance | (583.0) | (583.0) | ||||
Other comprehensive income (loss) before reclassifications | 3.0 | |||||
Amounts reclassified from accumulated other comprehensive loss to net income | 20.3 | |||||
Other comprehensive income (loss) | 8.8 | 5.9 | 23.3 | 13.4 | ||
Ending balance | (559.7) | (559.7) | ||||
Foreign Currency Translation Adjustments | ||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning balance | (382.8) | (382.8) | ||||
Other comprehensive income (loss) before reclassifications | (92.7) | |||||
Amounts reclassified from accumulated other comprehensive loss to net income | 0.0 | |||||
Other comprehensive income (loss) | 27.2 | 9.0 | (92.7) | 9.3 | ||
Ending balance | (475.5) | (475.5) | ||||
Gains (Losses) on Cash Flow Hedges | ||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning balance | (13.2) | (13.2) | ||||
Other comprehensive income (loss) before reclassifications | 3.4 | |||||
Amounts reclassified from accumulated other comprehensive loss to net income | (16.8) | |||||
Other comprehensive income (loss) | (1.8) | (7.9) | (13.4) | (13.8) | ||
Ending balance | (26.6) | (26.6) | ||||
AOCI Attributable to Parent | ||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Beginning balance | (979.0) | (979.0) | ||||
Other comprehensive income (loss) before reclassifications | (86.3) | |||||
Amounts reclassified from accumulated other comprehensive loss to net income | 3.5 | |||||
Other comprehensive income (loss) | 34.2 | $ (117.0) | $ 7.0 | $ 1.9 | (82.8) | $ 8.9 |
Ending balance | $ (1,061.8) | $ (1,061.8) |
Fair value of financial instruments Fair value of financial instruments (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
Mar. 31, 2019
derivative_instrument
|
Mar. 31, 2016
derivative_instrument
|
|
Debt Instrument [Line Items] | |||||||
Other operating income (expense) | $ 3.5 | $ (1.7) | $ 8.6 | $ 0.5 | |||
Foreign currency transaction gains (losses) | (3.5) | (3.4) | |||||
Interest expense | (23.2) | (22.7) | (43.2) | (45.7) | |||
Not Designated as Hedging Instrument | Foreign Exchange Contract | |||||||
Debt Instrument [Line Items] | |||||||
Notional value | 142.0 | $ 142.0 | |||||
Weighted average maturity | 1 month | ||||||
Not Designated as Hedging Instrument | Foreign Exchange Contract | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of foreign currency contract, net | 3.9 | $ 3.9 | $ 0.6 | ||||
Designated as Hedging Instrument | Currency Swap | |||||||
Debt Instrument [Line Items] | |||||||
Notional value | 110.0 | $ 110.0 | |||||
Weighted average maturity | 2 years 1 month 6 days | ||||||
Foreign currency derivative instrument gains (losses) | 3.4 | (3.7) | $ 28.8 | (1.3) | |||
Other operating income (expense) | (3.7) | 2.4 | (29.8) | (1.4) | |||
Foreign currency transaction gains (losses) | (3.7) | 2.4 | (29.8) | (1.4) | |||
Interest expense | (0.3) | (1.3) | (1.0) | (2.7) | |||
Designated as Hedging Instrument | Currency Swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of contract, asset position | 29.2 | 29.2 | 2.1 | ||||
Designated as Hedging Instrument | Interest Rate Swap | |||||||
Debt Instrument [Line Items] | |||||||
Notional value | 40.0 | $ 40.0 | |||||
Weighted average maturity | 4 months 24 days | ||||||
Number of interest rate swaps | derivative_instrument | 2 | ||||||
Designated as Hedging Instrument | $400 million interest rate swap | |||||||
Debt Instrument [Line Items] | |||||||
Notional value | 400.0 | $ 400.0 | |||||
Weighted average maturity | 1 year 9 months 18 days | ||||||
Number of interest rate swaps | derivative_instrument | 10 | ||||||
Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Interest expense | (2.1) | $ (2.9) | |||||
Fair value of swap, net | 34.2 | 34.2 | 15.0 | ||||
Prepaid expenses and other | Not Designated as Hedging Instrument | Foreign Exchange Contract | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of foreign currency contract, net | 0.8 | ||||||
Prepaid expenses and other | Designated as Hedging Instrument | Currency Swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of contract, asset position | 3.9 | 3.9 | |||||
Prepaid expenses and other | Designated as Hedging Instrument | Interest Rate Swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of swap, net | 0.2 | ||||||
Accrued liabilities | Not Designated as Hedging Instrument | Foreign Exchange Contract | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of foreign currency contract, net | 0.2 | ||||||
Accrued liabilities | Designated as Hedging Instrument | Currency Swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of contract, liability position | 2.8 | ||||||
Accrued liabilities | Designated as Hedging Instrument | Interest Rate Swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of swap, net | 0.3 | 0.3 | |||||
Accrued liabilities | Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of swap, liability position | 9.6 | 9.6 | 3.6 | ||||
Other assets | Designated as Hedging Instrument | Currency Swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of contract, asset position | 25.3 | 25.3 | 4.9 | ||||
Other liabilities | Designated as Hedging Instrument | $400 million interest rate swap | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of swap, liability position | 24.6 | 24.6 | 11.4 | ||||
Six hundred million senior unsecured notes | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | 600.0 | 600.0 | 600.0 | ||||
Six hundred million senior unsecured notes | Level 3 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value | 581.7 | 581.7 | 624.7 | ||||
Four hundred million senior unsecured notes | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | 400.0 | 400.0 | 0.0 | ||||
Four hundred million senior unsecured notes | Level 3 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value | 394.9 | 394.9 | $ 0.0 | ||||
Other operating income (expense) | Not Designated as Hedging Instrument | Foreign Exchange Contract | |||||||
Debt Instrument [Line Items] | |||||||
Foreign currency derivative instrument not designated as hedging gains (losses) | 2.6 | $ (1.4) | 3.9 | $ 2.5 | |||
Interest and other nonoperating expense | Not Designated as Hedging Instrument | Foreign Exchange Contract | |||||||
Debt Instrument [Line Items] | |||||||
Foreign currency derivative instrument not designated as hedging gains (losses) | $ (0.4) | $ (8.1) |
Debt (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 12.1 | $ 14.3 |
Long-term Debt Types [Abstract] | ||
Total long-term debt | 2,471.3 | 1,629.3 |
Total Debt | 2,483.4 | 1,643.6 |
Long-term Debt by Current and Noncurrent [Abstract] | ||
Current liabilities | 120.8 | 88.8 |
Noncurrent liabilities | 2,362.6 | 1,554.8 |
Term Loan A | Senior Secured Credit Facility - Amended II | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 1,326.3 | |
Other Disclosures [Abstract] | ||
Debt issue costs | 6.3 | |
Term Loan A | Senior Secured Credit Facility - Amended | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 767.0 | |
Other Disclosures [Abstract] | ||
Debt issue costs | 3.0 | |
Senior unsecured notes | Six hundred million senior unsecured notes | ||
Long-term Debt Types [Abstract] | ||
Long-term Debt | 986.6 | 592.9 |
Other Disclosures [Abstract] | ||
Debt issue costs | 13.4 | 7.1 |
Revolving Credit Facility | ||
Long-term Debt Types [Abstract] | ||
Debt | 0.0 | 115.0 |
Other Non-US Dollar-denominated Facilities | ||
Long-term Debt Types [Abstract] | ||
Debt | 8.2 | 4.9 |
Financing leases | ||
Long-term Debt Types [Abstract] | ||
Financing leases | 150.2 | 149.5 |
Restricted Cash Borrowings | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 10.3 | 10.3 |
Other | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 1.8 | $ 4.0 |
Debt - Narrative (Details) $ in Millions |
1 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 22, 2020
USD ($)
|
Feb. 08, 2019
USD ($)
|
Oct. 31, 2017
USD ($)
|
Jun. 30, 2020
USD ($)
facility
|
Apr. 01, 2020
USD ($)
|
|
Senior Secured Credit Facility - Amended | |||||
Debt Instrument [Line Items] | |||||
Commitment Fee | 0.25% | ||||
Letter of Credit | Three Committed Letter of Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Available capacity amount | $ 12 | ||||
Number of term loan facilities | facility | 3 | ||||
Amount available | $ 58 | ||||
Undrawn letters of credit | 46 | ||||
Letter of Credit | Ten Million Committed Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Borrowing Capacity | 10 | ||||
Letter of Credit | Thirty Two Million Committed Letter Of Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Borrowing Capacity | 32 | ||||
Letter of Credit | Sixteen Million Committed Letter Of Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Borrowing Capacity | 16 | ||||
Letter of Credit | Two Unsecured Letter of Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Available capacity amount | $ 33 | ||||
Number of term loan facilities | facility | 2 | ||||
Amount available | $ 55 | ||||
Undrawn letters of credit | 22 | ||||
Letter of Credit | Forty Million Unsecured Letter Of Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Amount available | 40 | ||||
Letter of Credit | Fifteen Million Unsecured Letter Of Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Amount available | $ 15 | ||||
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 | 0.35% | ||||
Term Loan A | Senior Secured Credit Facility - Amended II | |||||
Debt Instrument [Line Items] | |||||
Debt, aggregate principal amount increase | $ 590 | ||||
Debt, aggregate principal amount | $ 1,390 | ||||
Term Loan A | Senior Secured Credit Facility - Amended | |||||
Debt Instrument [Line Items] | |||||
Debt, aggregate principal amount | $ 760 | ||||
Quarterly principal payment, percentage | 1.25% | ||||
Revolving Credit Facility | Senior Secured Credit Facility - Amended II | |||||
Debt Instrument [Line Items] | |||||
Net first lien secured debt leverage ratio maximum | 4.25 | ||||
Net secured debt leverage ratio limits | 4.0 | ||||
Revolving Credit Facility | Senior Secured Credit Facility - Amended | |||||
Debt Instrument [Line Items] | |||||
Maximum Borrowing Capacity | $ 1,000 | ||||
Line of credit maturity period | 5 years | ||||
Available capacity amount | $ 1,000 | ||||
Senior unsecured notes | Four hundred million senior unsecured notes | |||||
Debt Instrument [Line Items] | |||||
Debt, aggregate principal amount | $ 400 | ||||
Interest Rate Percentage | 5.50% | ||||
Debt maturity period | 5 years | ||||
Senior unsecured notes | Six hundred million senior unsecured notes | |||||
Debt Instrument [Line Items] | |||||
Debt, aggregate principal amount | $ 600 | ||||
Interest Rate Percentage | 4.625% | ||||
Debt maturity period | 10 years | ||||
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 | 2.50% | ||||
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 | 1.50% |
Credit losses Credit losses (Details) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2020
USD ($)
country
|
Jan. 01, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Valuation Allowance [Line Items] | |||
Number of Countries in which Entity Operates | country | 100 | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for doubtful accounts, beginning balance | $ 30.2 | ||
Retained earnings | 455.2 | $ 457.4 | |
Provision for uncollectible accounts receivable(a) | 13.1 | ||
Write-offs less recoveries | (1.4) | ||
Foreign currency exchange effects | (0.7) | ||
Allowance for doubtful accounts, ending balance | 43.5 | ||
Internal Loss AR Rebuild | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Provision for uncollectible accounts receivable(a) | 10.6 | ||
Allowance for doubtful accounts, ending balance | $ 21.6 | ||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Retained earnings | $ 2.3 |
Share-based compensation plans - Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | $ 5.8 | $ 16.7 | $ 13.0 | $ 26.1 |
Cash based awards | 0.4 | 0.0 | 0.4 | 0.0 |
Income tax benefit | (1.2) | (3.8) | (2.8) | (6.0) |
Share-based payment expense, net of tax | 4.6 | 12.9 | 10.2 | 20.1 |
Performance Shares Units PSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | 2.4 | 8.8 | 7.0 | 14.6 |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | 1.7 | 1.9 | 3.0 | 3.9 |
Deferred Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | 0.3 | 0.3 | 0.6 | 0.6 |
Performance-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | 0.5 | 5.4 | 1.2 | 6.5 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment expense | $ 0.5 | $ 0.3 | $ 0.8 | $ 0.5 |
Share-based compensation plans - Stock activity - RSU, PSU, DSU (Details) - $ / shares |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Restricted Stock Units | ||
Shares (in thousands) | ||
Nonvested, beginning balance, shares | 172,700 | |
Granted, shares | 83,100 | |
Forfeited, shares | (10,000.0) | |
Conversion to cash settled awards, shares | (1,300) | |
Vested, shares | (83,300) | |
Nonvested, ending balance, shares | 161,200 | 172,700 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested, beginning balance (dollars per share) | $ 71.87 | |
Granted (dollars per share) | 75.41 | |
Forfeited (dollars per share) | 78.68 | |
Converted to cash settled awards (dollars per share) | 72.80 | |
Vested (dollars per share) | 67.31 | |
Nonvested, ending balance (dollars per share) | $ 75.63 | $ 71.87 |
Performance Shares Units PSU | ||
Shares (in thousands) | ||
Nonvested, beginning balance, shares | 564,200 | |
Granted, shares | 242,700 | |
Forfeited, shares | (16,900) | |
Conversion to cash settled awards, shares | (4,600) | |
Vested, shares | (204,300) | |
Nonvested, ending balance, shares | 581,100 | 564,200 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested, beginning balance (dollars per share) | $ 70.10 | |
Granted (dollars per share) | 84.60 | |
Forfeited (dollars per share) | 75.92 | |
Converted to cash settled awards (dollars per share) | 65.42 | |
Vested (dollars per share) | 56.72 | |
Nonvested, ending balance (dollars per share) | $ 80.73 | $ 70.10 |
Actual shares earned and distributed (shares) | 394,000.0 | |
Target shares (shares) | 204,300 | |
Deferred Stock Units | ||
Shares (in thousands) | ||
Nonvested, beginning balance, shares | 12,100 | |
Granted, shares | 21,600 | |
Vested, shares | (11,100) | |
Nonvested, ending balance, shares | 22,600 | 12,100 |
Weighted-Average Grant Date Fair Value Per Share | ||
Nonvested, beginning balance (dollars per share) | $ 79.69 | |
Granted (dollars per share) | 40.46 | |
Vested (dollars per share) | 78.70 | |
Nonvested, ending balance (dollars per share) | $ 42.70 | $ 79.69 |
Share-based compensation plans - Option Activity (Details) |
6 Months Ended |
---|---|
Jun. 30, 2020
$ / shares
shares
| |
Performance-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, shares | shares | 1,191,100 |
Granted, shares | shares | 0 |
Forfeited, shares | shares | 0 |
Exercised, shares | shares | 0 |
Ending balance, shares | shares | 1,191,100 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (dollars per share) | $ / shares | $ 11.52 |
Granted (dollars per share) | $ / shares | 0 |
Forfeited (dollars per share) | $ / shares | 0 |
Exercised (dollars per share) | $ / shares | 0 |
Ending balance (dollars per share) | $ / shares | $ 11.52 |
Time Based Vesting Option | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, shares | shares | 127,000.0 |
Granted, shares | shares | 80,800 |
Forfeited, shares | shares | 0 |
Exercised, shares | shares | 0 |
Ending balance, shares | shares | 207,800 |
Weighted Average Grant Date Fair Value Per Share | |
Beginning balance (dollars per share) | $ / shares | $ 21.56 |
Granted (dollars per share) | $ / shares | 21.10 |
Forfeited (dollars per share) | $ / shares | 0 |
Exercised (dollars per share) | $ / shares | 0 |
Ending balance (dollars per share) | $ / shares | $ 21.38 |
Capital Stock Capital Stock (Details) - USD ($) |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2019 |
Jul. 17, 2020 |
Jun. 30, 2020 |
Feb. 06, 2020 |
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) | 50,100,000 | 50,500,000 | |||
Maximum shares allowed for issuance (in shares) | 2,000,000.0 | ||||
Par value (in dollars per share) | $ 10 | ||||
250 Million Share Repurchase Program | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program amount | $ 250,000,000 | ||||
200 Million Share Repurchase Program | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program amount | $ 200,000,000 | ||||
Stock repurchased and retired during period, shares | 1,300,000 | ||||
Stock repurchase program amount used | $ 94,000,000 | ||||
Average price per share (in dollars per share) | $ 69.35 | ||||
Stock repurchase program remaining amount | $ 106,000,000 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared (in dollars per share) | $ 0.15 |
Capital Stock - Shares Used To Calculate Earnings (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Equity [Abstract] | ||||
Basic (shares) | 50.8 | 50.2 | 50.7 | 50.1 |
Effect of dilutive stock options and awards (shares) | 0.2 | 0.7 | 0.5 | 0.8 |
Diluted (shares) | 51.0 | 50.9 | 51.2 | 50.9 |
Antidilutive stock options and awards excluded from denominator (shares) | 0.8 | 0.1 | 0.6 | 0.1 |
Deferred compensation common stock unit (shares) | 0.3 | 0.3 | 0.3 | 0.3 |
Supplemental cash flow information (Details) - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Interest | $ 40.9 | $ 40.9 | ||
Income taxes, net | 42.8 | 31.9 | ||
Financing Leases | 19.4 | 30.5 | ||
Restricted cash | 171.5 | $ 158.0 | ||
Cash and cash equivalents | 531.3 | 311.0 | ||
Cash, Cash Equivalents, and Restricted Cash | 702.8 | $ 410.7 | 469.0 | $ 479.5 |
Cash from Short Term Borrowings | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | 10.3 | 10.3 | ||
Cash Held From Customers | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | 87.4 | 100.3 | ||
Deposits liability | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | 67.8 | $ 47.4 | ||
Revolving Credit Facility | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Restricted cash | $ 5.0 |
Reorganization and Restructuring (Details) - Other Restructurings $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
|
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, beginning balance | $ 7.0 | |
Expense | 44.6 | |
Payments and utilization | (31.1) | |
Foreign currency exchange effects | (0.7) | |
Restructuring Reserve, ending balance | 19.8 | |
Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 5.0 | |
Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 7.0 | |
Severance Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 44.6 | $ 14.1 |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, beginning balance | 7.0 | |
Expense | 41.8 | |
Payments and utilization | (28.3) | |
Foreign currency exchange effects | (0.7) | |
Restructuring Reserve, ending balance | 19.8 | |
Other Restructuring | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, beginning balance | 0.0 | |
Expense | 2.8 | |
Payments and utilization | (2.8) | |
Foreign currency exchange effects | 0.0 | |
Restructuring Reserve, ending balance | $ 0.0 |
Subsequent Events Subsequent Events (Details) - G4S |
Jul. 13, 2020 |
Jul. 06, 2020 |
Apr. 01, 2020 |
---|---|---|---|
Subsequent Event [Line Items] | |||
Acquisition date | Apr. 01, 2020 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Subsequent Event, Date | Jul. 13, 2020 | ||
INDONESIA | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Acquisition date | Jul. 06, 2020 |
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