Subsequent Events

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On January 4, 2022, the U.S. Treasury published in the Federal Register final foreign tax credit regulations. Among other changes and barring any tax treaty relief, the newly enacted regulations substantially overhaul longstanding foreign tax credit regulations involving the determination of creditable foreign taxes and may reduce the amount of foreign taxes that are likely to be creditable against U.S. income taxes under the U.S. Internal Revenue Code. Based upon a country-by-country analysis of the Company’s foreign withholding taxes, we expect that a portion of the Company’s post-2021 foreign withholding taxes will now be ineligible for U.S. income tax credit treatment under the new regulations. For foreign taxes that are now ineligible for the U.S. income tax credits under the new regulations, we expect that the Company should be able to deduct such foreign taxes on its U.S. income tax return. The Company is mainly impacted by certain withholding taxes levied by Latin American countries for services and royalty payments to Brink’s U.S.

If the Company is unable to receive sufficient foreign tax credits in the U.S. for prospective annual foreign taxes paid, including withholding taxes, the Company may begin to utilize a portion of its foreign tax credit carryforwards, which currently are subject to a valuation allowance. Therefore, the Company is evaluating the possibility of releasing a portion of the valuation allowance on certain U.S. deferred tax assets related to the foreign tax credit carryforward attributes during the first quarter of 2022. We are currently unable to estimate the impact.