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Segment information
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment information Segment information
We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. Our CODM is our President and Chief Executive Officer. Our CODM evaluates performance and allocates resources to each operating segment based on a profit or loss measure which, at the reportable segment level, excludes the following:
•Corporate expenses - include corporate headquarters costs, regional management costs, currency transaction gains and losses, adjustments to reconcile segment accounting policies to U.S. GAAP, and costs related to global initiatives.
•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 implementation and adoption of ASU 2016-02, the new lease accounting standard which was 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.

During the fourth quarter of 2020, we implemented changes to our organizational and management structure that resulted in changes to our operating segments. Previously, our business was managed and reported in three operating segments: North America, South America and Rest of World. We now manage our business in four segments, and segment results are reported by these four segments. The four segments are as follows:

•North America – operations in the U.S. and Canada, including the Brink’s Global Services ("BGS") line of business,
•Latin America – operations in Latin American countries where we have an ownership interest, including the BGS line of business. This segment includes operations in Mexico, which was previously reported in the North America segment,
•Europe – operations in European countries which primarily provide services outside of the BGS line of business. This segment includes the BGS line of business within these country operations, and
•Rest of World – operations in European countries which primarily provide BGS services. This segment includes other lines of business within these country operations. This segment also includes operations in the Middle East, Africa and Asia as well as BGS activity in Latin American countries primarily where we do not have an ownership interest.

Previously disclosed information for all periods presented has been revised to reflect our current segment structure.

Prior to 2021, all business units within the operating segments followed an internal Brink's accounting policy for determining an allowance for doubtful accounts and recognizing bad debt expense. The allowance amounts reported by the operating segments were then reconciled to the required U.S. GAAP estimated consolidated allowance amount, and any differences were reported as part of Corporate expenses. During the first quarter of 2021, we changed the allowance calculation method of the U.S. business within the North America operating segment, in order to more closely align it with U.S. GAAP requirements. Differences between U.S. GAAP and existing internal policy were not significant for all other business units within the operating segments, and so no other changes were made, and reconciling amounts for those units will continue to be reported as part of Corporate expense. For the North America segment, the impact of this change in reporting was to reduce the segment allowance and to increase segment operating profit by $12.3 million in the first quarter of 2021. There was no net impact to consolidated results, as a corresponding offsetting adjustment occurred on Corporate expenses.
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 June 30,Three Months Ended June 30,
(In millions)
2021202020212020
Reportable Segments:
 
 
 
 
North America
$356.8 274.3 41.1 8.4 
Latin America
272.8 230.4 57.1 41.8 
Europe230.8 167.9 18.7 1.2 
Rest of World
188.4 153.4 31.9 31.0 
Total reportable segments
1,048.8 826.0 148.8 82.4 
Reconciling Items:
Corporate expenses:
General, administrative and other expenses
— — (38.5)(24.6)
Foreign currency transaction gains (losses)
— — (0.1)(0.9)
Reconciliation of segment policies to GAAP(a)
— — 0.4 16.3 
Other items not allocated to segments:
Reorganization and Restructuring(b)
— — (15.1)(39.0)
Acquisitions and dispositions(c)
— — (20.5)(30.9)
Argentina highly inflationary impact(d)
— — (2.6)(2.8)
Internal loss(e)
— — 0.9 (1.2)
Reporting compliance(f)
— — — (0.3)
Total
$1,048.8 826.0 $73.3 (1.0)
Revenues
Operating Profit
Six Months Ended June 30,Six Months Ended June 30,
(In millions)
2021202020212020
Reportable Segments:
 
 
 
 
North America
$673.9 615.2 73.4 21.8 
Latin America
542.5 529.4 115.8 102.3 
Europe445.2 294.2 29.3 3.3 
Rest of World
364.9 260.0 62.3 44.6 
Total reportable segments
2,026.5 1,698.8 280.8 172.0 
Reconciling Items:
Corporate expenses:
General, administrative and other expenses
— — (68.6)(51.9)
Foreign currency transaction gains (losses)
— — — (3.6)
Reconciliation of segment policies to GAAP(a)
— — (11.5)19.8 
Other items not allocated to segments:
Reorganization and Restructuring(b)
— — (21.7)(44.6)
Acquisitions and dispositions(c)
— — (39.2)(50.0)
Argentina highly inflationary impact(d)
— — (6.5)(5.2)
Internal loss(e)
— — 1.7 (10.8)
Reporting compliance(f)
— — — (0.5)
Total
$2,026.5 1,698.8 $135.0 25.2 

(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.
(b)Management periodically implements restructuring actions in targeted sections of our business. Due to the unique circumstances around the charges related to these actions, they have not been allocated to segment results.
(c)Certain acquisition and disposition items that are not considered part of the ongoing activities of the business and are special in nature are consistently excluded from segment results. These items include amortization expense for acquisition-related intangible assets and integration, transaction and restructuring costs related to business acquisitions.
(d)Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes. Currency remeasurement gains and losses related to peso-denominated monetary assets and liabilities as well as incremental expense related to nonmonetary assets are excluded from segment results.
(e)See details regarding the impact of the Internal Loss at Note 1.
(f)Costs (primarily third party expenses) related to the lease accounting standard implementation. Additional information provided at page 45.