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Share-based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Compensation expenses for the last three years and the amount of unrecognized expense for awards outstanding at December 31, 2020, were as follows:


	Compensation Expense				Unrecognized Expense for Nonvested Awards at		Weighted-average No. of Years Unrecognized Expense to be Recognized
	Years Ended December 31,				Dec 31, 2020
(in millions except years)	2020		2019	2018

Performance Share Units	$	20.2	25.8	15.8	$	17.7	1.5
Market Share Units	—		—	0.1	—		0.0
Restricted Stock Units	6.0		6.6	6.6	9.4		1.7
Deferred Stock Units and fees paid in stock	1.2		1.2	1.2	0.3		0.3
Performance-based Options	2.3		8.1	4.5	0.3		0.1
Time-based Options	1.6		1.0	—	1.8		1.6
Cash based awards	1.4		—	—	1.3		1.9
Share-based payment expense	32.7		42.7	28.2
Income tax benefit	(7.4)		(9.2)	(6.5)
Share-based payment expense, net of tax	$	25.3	33.5	21.7

The following table summarizes RSU activity during 2020:


	Shares (in thousands)	Weighted-Average Grant Date Fair Value Per Share

Nonvested balance as of December 31, 2019	172.7	$	71.87
Activity from January 1 to December 31, 2020:
Granted	178.6	70.85
Forfeited	(12.5)	78.86
Conversion to cash settled awards(a)	(1.3)	72.80
Vested	(85.7)	67.44
Nonvested balance as of December 31, 2020	251.8	$	72.30

(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.

The following table summarizes all PSU activity during 2020:


	Shares (in thousands)	Weighted-Average Grant Date Fair Value Per Share

Nonvested balance as of December 31, 2019	564.2	$	70.10
Activity from January 1 to December 31, 2020:
Granted	248.4	83.68
Forfeited	(27.0)	76.32
Conversion to cash settled awards(a)	(4.6)	65.42
Vested(b)	(204.3)	56.72
Nonvested balance as of December 31, 2020	576.7	$	80.43

(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)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 2020:


	Shares (in thousands)	Weighted-Average Grant-Date Fair Value

Nonvested balance as of December 31, 2019	12.1	$	79.69
Activity from January 1 to December 31, 2020:
Granted	21.6	40.46

Vested	(12.1)	79.69
Nonvested balance as of December 31, 2020	21.6	$	40.46

Share-based Compensation, Fair Value of Shares Vested

The value of shares distributed or options exercised in the last three years is as follows:


	Value of Shares Distributed or Exercised(a)
	Years Ended December 31,
(in millions)	2020		2019	2018

Performance Share Units	$	33.3	28.7	25.3
Market Share Units	—		—	8.2
Restricted Stock Units	6.9		11.8	8.0
Deferred Stock Units and fees paid in stock	0.6		0.9	0.7
Performance-based Options(a)	0.5		5.4	—
Time-based vesting Options(a)	—		—	2.2
Total	$	41.3	46.8	44.4

Income tax benefit realized	$	9.0	10.2	9.9

(a)Intrinsic value for options.

Fair value of options calculation assumptions

The following table provides the terms and weighted-average assumptions used in the Monte Carlo simulation model for the TSR PSUs granted in 2020, 2019 and 2018:


Terms and Assumptions Used to Estimate Grant Date Fair Value	2020 TSR PSUs			2019 TSR PSUs			2018 TSR PSUs

Terms of awards:
Performance period	Jan. 1, 2020 to			Jan. 1, 2019 to			Jan. 1, 2018 to
	Dec. 31, 2022			Dec. 31, 2021			Dec. 31, 2020


Weighted-average assumptions used to estimate fair value:
Expected dividend yield(a)	0.7		%	0.8		%	0.8	%
Expected stock price volatility(b)	29.6		%	30.8		%	29.9	%
Risk-free interest rate(c)	1.4		%	2.5		%	2.4	%
Contractual term in years	2.9			2.8			2.9

Weighted-average fair value estimates at grant date:
In millions	$	3.6		$	3.0		3.2
Fair value per share	$	94.53		$	105.16		79.05

(a)TSR is determined assuming that dividends are reinvested. The stock price projection in the Monte Carlo simulation model assumed a 0% dividend yield, which is mathematically equivalent to reinvesting dividends over the performance period. For the valuation of the TSR PSU, because the holders of the awards have no rights to any dividend paid during the vesting period, we applied a dividend yield in the Monte Carlo simulation model to reduce the projected stock price as of the grant date.

(b)The expected stock price volatility was calculated on the grant date for the most recent term equivalent to the contractual term in years.

(c)The risk-free interest rate on each date of grant is the rate for a zero-coupon U.S. Treasury bill that was commensurate with the grant date contractual term.

The following table provides the term of the performance period and the weighted-average assumptions used in the Monte Carlo simulation model for the performance-based options granted in 2018:


Terms and Assumptions Used to Estimate Grant Date Fair Value of Performance-Based Options Granted	2018

Terms of awards:
Performance period for achieving stock price hurdles	Three years from
	grant date


Assumptions used to estimate fair value:
Expected dividend yield(a)	0.8		%
Expected stock price volatility(b)	29.3		%
Risk-free interest rate(c)	2.6		%
Expected term in years(d)	4.5

Weighted-average fair value estimates at grant date:
In millions	$	7.0
Fair value per share	$	16.73

(a)Since the holders of the awards have no rights to any dividend paid during the vesting period, we applied a dividend yield in the Monte Carlo simulation model. At each grant date, the dividend yield was calculated based on the most recent annualized dividend payment and Brink's stock price at the date of grant.

(b)The expected stock price volatility was calculated on each grant date for the most recent 4.5 year term.

(c)The risk-free interest rate on each grant date is the rate for a zero-coupon U.S. Treasury bill that was commensurate with the expected life of 4.5 years.

(d)Because we did not have historical exercise behavior for instruments with premiums, we assumed that the exercise of vested options occurred at the mid-point between the three-year vesting date and the six-year contractual term. In the Monte Carlo simulation, at each iteration of forecasted Brink's stock prices, the option was assumed to be exercised at the mid-point of 4.5 years if the stock price hurdle had been achieved. When the hurdle is achieved, the exercise price was then subtracted from the projected stock price, and discounted back to the grant date. In situations where the projected price had not met the hurdle, no value was attributed.

The following table provides the weighted-average assumptions used in the Black-Scholes-Merton option pricing model for the time-based vesting options granted in 2020 and 2019:


Assumptions Used to Estimate Grant Date Fair Value of Time-Based Options	2020			2019

Assumptions used to estimate fair value:
Expected dividend yield(a)	0.7		%	0.8		%
Expected stock price volatility(b)	29.7		%	30.3		%
Risk-free interest rate(c)	1.3		%	2.5		%
Expected term in years(d)	4.5			4.5

Weighted-average fair value estimates at grant date:
In millions	$	1.7		$	3.0
Fair value per share	$	21.10		$	21.58

(a)The expected dividend yield is the calculated annual yield on Brink's stock at the time of the grant.

(b)The expected stock price volatility was calculated at time of the grant after reviewing the historic volatility of our stock using daily close prices.

(c)The risk-free interest rate at each grant date was the rate for a zero-coupon U.S. Treasury bill that was commensurate with the expected life of 4.5 years.

(d)The expected term of the options was based on historical exercise, expiration and post-cancellation behavior.

Option Activity

The table below summarizes the activity associated with grants of performance-based options:


	Shares (in thousands)	Weighted- Average Exercise Price Per Share		Weighted-Average Grant Date Fair Value Per Share		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value(a) (in millions)

Outstanding at December 31, 2019(b)	1,191.1	$	50.51	$	11.52
Granted	—	—		—
Forfeited or expired	—	—		—
Exercised(b)	(26.1)	52.75		27.14
Outstanding at December 31, 2020(b)(c)	1,165.0	$	50.46	$	11.17	2.2	$	25.7

Of the above, as of December 31, 2020:
Exercisable	757.8	$	38.11			1.7	$	25.7
Expected to vest in future periods(d)	407.2	$	73.45			3.0	$	—

(a)The intrinsic value of a stock option is the difference between the market price of the shares underlying the option and the exercise price of the option. The market price at December 31, 2020 was $72.00.

(b)Certain performance-based stock options were modified in the second quarter of 2019. The weighted-average grant date fair value per share for the outstanding options at December 31, 2019, the options exercised in 2020 and for the outstanding options at December 31, 2020 reflects the inclusion of the modified fair value per share.

(c)There were 485.0 thousand exercisable performance-based options with a weighted average exercise price of $29.87 at December 31, 2019 and no exercisable performance-based options at December 31, 2018.

(d)The number of options expected to vest takes into account an estimate of expected forfeitures. We currently have applied a 0% expected forfeiture rate to the performance-based options.

The table below summarizes the activity associated with grants of time-based vesting options:


	Shares (in thousands)	Weighted- Average Exercise Price Per Share		Weighted-Average Grant Date Fair Value Per Share		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value(a) (in millions)

Outstanding at December 31, 2019	127.0	$	79.32	$	21.56
Granted	80.8	84.42		21.10
Forfeited or expired	—	—		—

Outstanding at December 31, 2020(b)	207.8	$	81.30	$	21.38	4.5	$	—

Of the above, as of December 31, 2020:
Exercisable	2.7	$	84.65			2.8	$	—
Expected to vest in future periods(c)	205.1	$	81.26			4.5	$	—

(b)There were no exercisable options at December 31, 2019 and at December 31, 2018.

(c)The number of options expected to vest takes into account an estimate of expected forfeitures. We currently have applied a 0% expected forfeiture rate to the time-based vesting options.