Segment information

9 Months Ended

Sep. 30, 2020

We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. Our CODM is our President and Chief Executive Officer. Our CODM evaluates performance and allocates resources to each operating segment based on a profit or loss measure which, at the reportable segment level, excludes the following:

•Corporate expenses - former non-segment and regional management costs, currency transaction gains and losses, adjustments to reconcile segment accounting policies to U.S. GAAP, and costs related to global initiatives are excluded from segment results.

•Other items not allocated to segments - certain significant items such as reorganization and restructuring actions that are evaluated on an individual basis by management and are not considered part of the ongoing activities of the business are excluded from segment results. 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.

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


	Revenues			Operating Profit
	Three Months Ended September 30,			Three Months Ended September 30,
(In millions)	2020		2019	2020		2019
Reportable Segments:
North America	$	404.1	446.7	$	36.9	38.7
South America	172.0		229.0	38.9		59.4
Rest of World	394.4		248.9	54.3		32.2
Total reportable segments	970.5		924.6	130.1		130.3

Reconciling Items:
Corporate expenses:
General, administrative and other expenses	—		—	(26.6)		(26.2)
Foreign currency transaction gains (losses)	—		—	(7.9)		(0.4)
Reconciliation of segment policies to GAAP(a)	—		—	4.3		(1.3)
Other items not allocated to segments:

Reorganization and Restructuring	—		—	(5.1)		(6.4)
Acquisitions and dispositions	—		(0.2)	(16.2)		(24.0)
Argentina highly inflationary impact	—		—	(3.2)		(7.9)
Internal loss(b)	—		4.0	0.9		(11.3)
Reporting compliance(c)	—		—	0.1		(0.3)
Total	$	970.5	928.4	$	76.4	52.5

(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 46.


	Revenues			Operating Profit
	Nine Months Ended September 30,			Nine Months Ended September 30,
(In millions)	2020		2019	2020		2019
Reportable Segments:
North America	$	1,197.5	1,323.7	$	87.8	129.1
South America	528.8		684.5	113.6		147.4
Rest of World	943.0		735.7	100.7		82.2
Total reportable segments	2,669.3		2,743.9	302.1		358.7

Reconciling Items:
Corporate expenses:
General, administrative and other expenses	—		—	(78.5)		(85.8)
Foreign currency transaction gains (losses)	—		—	(11.5)		0.2
Reconciliation of segment policies to GAAP(a)	—		—	24.1		2.9
Other items not allocated to segments:

Reorganization and Restructuring	—		—	(49.7)		(20.5)
Acquisitions and dispositions	—		(0.5)	(66.2)		(63.8)
Argentina highly inflationary impact	—		—	(8.4)		(12.3)
Internal loss(b)	—		4.0	(9.9)		(13.9)
Reporting compliance(c)	—		—	(0.4)		(2.0)
Total	$	2,669.3	2,747.4	$	101.6	163.5

(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 46.


	September 30,		December 31,
(in millions)	2020		2019
Assets held by Reportable Segment
North America	$	1,614.1	1,683.0
South America	707.5		806.1
Rest of World	2,173.8		1,006.8
Total reportable segments	4,495.4		3,495.9
Corporate items	407.7		267.9
Total	$	4,903.1	3,763.8