THE BRINK’S COMPANY
|
||
(Exact name of registrant as specified in its charter)
|
Virginia
|
54-1317776
|
|||
(State or other jurisdiction of
|
(I.R.S. Employer
|
|||
incorporation or organization)
|
Identification No.)
|
September 30,
|
December 31,
|
||||||||
(In millions)
|
2012
|
2011
|
|||||||
ASSETS
|
|||||||||
Current assets:
|
|||||||||
Cash and cash equivalents
|
$
|
202.7
|
182.9
|
||||||
Accounts receivable, net
|
622.8
|
550.5
|
|||||||
Prepaid expenses and other
|
145.7
|
134.1
|
|||||||
Deferred income taxes
|
79.8
|
66.4
|
|||||||
Total current assets
|
1,051.0
|
933.9
|
|||||||
Property and equipment, net
|
762.2
|
749.2
|
|||||||
Goodwill
|
242.6
|
231.4
|
|||||||
Other intangibles
|
59.1
|
63.8
|
|||||||
Deferred income taxes
|
376.9
|
350.8
|
|||||||
Other
|
72.1
|
77.1
|
|||||||
Total assets
|
$
|
2,563.9
|
2,406.2
|
||||||
LIABILITIES AND EQUITY
|
|||||||||
Current liabilities:
|
|||||||||
Short-term borrowings
|
$
|
32.6
|
25.4
|
||||||
Current maturities of long-term debt
|
29.4
|
28.7
|
|||||||
Accounts payable
|
152.2
|
159.5
|
|||||||
Accrued liabilities
|
546.2
|
488.5
|
|||||||
Total current liabilities
|
760.4
|
702.1
|
|||||||
Long-term debt
|
363.2
|
335.3
|
|||||||
Accrued pension costs
|
343.8
|
369.6
|
|||||||
Retirement benefits other than pensions
|
315.9
|
315.4
|
|||||||
Deferred income taxes
|
31.8
|
23.0
|
|||||||
Other
|
185.4
|
178.4
|
|||||||
Total liabilities
|
2,000.5
|
1,923.8
|
|||||||
Commitments and contingent liabilities (notes 3, 4 and 9)
|
|||||||||
Equity:
|
|||||||||
The Brink’s Company (“Brink’s”) shareholders:
|
|||||||||
Common stock
|
47.8
|
46.9
|
|||||||
Capital in excess of par value
|
568.3
|
559.5
|
|||||||
Retained earnings
|
636.0
|
589.5
|
|||||||
Accumulated other comprehensive loss
|
(763.6)
|
(787.9)
|
|||||||
Brink’s shareholders
|
488.5
|
408.0
|
|||||||
Noncontrolling interests
|
74.9
|
74.4
|
|||||||
Total equity
|
563.4
|
482.4
|
|||||||
Total liabilities and equity
|
$
|
2,563.9
|
2,406.2
|
||||||
See accompanying notes to consolidated financial statements.
|
Three Months
|
Nine Months
|
|||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||
(In millions, except per share amounts)
|
2012
|
2011
|
2012
|
2011
|
||||||||
Revenues
|
$
|
979.0
|
995.8
|
2,912.9
|
2,888.4
|
|||||||
Costs and expenses:
|
||||||||||||
Cost of revenues
|
799.0
|
807.7
|
2,384.9
|
2,373.9
|
||||||||
Selling, general and administrative expenses
|
147.4
|
136.6
|
427.4
|
400.3
|
||||||||
Total costs and expenses
|
946.4
|
944.3
|
2,812.3
|
2,774.2
|
||||||||
Other operating income (expense)
|
4.5
|
11.0
|
5.4
|
5.7
|
||||||||
Operating profit
|
37.1
|
62.5
|
106.0
|
119.9
|
||||||||
Interest expense
|
(5.7)
|
(6.5)
|
(17.4)
|
(18.2)
|
||||||||
Interest and other income (expense)
|
1.5
|
1.3
|
6.3
|
6.8
|
||||||||
Income from continuing operations before tax
|
32.9
|
57.3
|
94.9
|
108.5
|
||||||||
Provision (benefit) for income taxes
|
14.7
|
20.9
|
20.8
|
37.9
|
||||||||
Income from continuing operations
|
18.2
|
36.4
|
74.1
|
70.6
|
||||||||
Income from discontinued operations, net of tax
|
-
|
(0.7)
|
-
|
3.0
|
||||||||
Net income
|
18.2
|
35.7
|
74.1
|
73.6
|
||||||||
Less net income attributable to noncontrolling interests
|
(4.7)
|
(4.9)
|
(13.1)
|
(14.9)
|
||||||||
Net income attributable to Brink’s
|
13.5
|
30.8
|
61.0
|
58.7
|
||||||||
Income attributable to Brink’s:
|
||||||||||||
Continuing operations
|
13.5
|
31.5
|
61.0
|
55.7
|
||||||||
Discontinued operations
|
-
|
(0.7)
|
-
|
3.0
|
||||||||
Net income attributable to Brink’s
|
$
|
13.5
|
30.8
|
61.0
|
58.7
|
|||||||
Earnings per share attributable to Brink’s common shareholders:
|
||||||||||||
Basic:
|
||||||||||||
Continuing operations
|
$
|
0.28
|
0.66
|
1.26
|
1.17
|
|||||||
Discontinued operations
|
-
|
(0.02)
|
-
|
0.06
|
||||||||
Net income
|
0.28
|
0.64
|
1.26
|
1.23
|
||||||||
Diluted:
|
||||||||||||
Continuing operations
|
$
|
0.28
|
0.66
|
1.26
|
1.16
|
|||||||
Discontinued operations
|
-
|
(0.02)
|
-
|
0.06
|
||||||||
Net income
|
0.28
|
0.64
|
1.26
|
1.22
|
||||||||
Weighted-average shares
|
||||||||||||
Basic
|
48.5
|
48.0
|
48.4
|
47.8
|
||||||||
Diluted
|
48.6
|
48.1
|
48.6
|
48.1
|
||||||||
Cash dividends paid per common share
|
$
|
0.10
|
0.10
|
0.30
|
0.30
|
|||||||
See accompanying notes to consolidated financial statements.
|
Three Months
|
Nine Months
|
|||||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||
Net income
|
$
|
18.2
|
35.7
|
74.1
|
73.6
|
|||||||||
Other comprehensive income (loss):
|
||||||||||||||
Benefit plan adjustments:
|
||||||||||||||
Net experience gains (losses) arising during the period
|
(3.8)
|
(1.0)
|
(11.1)
|
(4.7)
|
||||||||||
Tax benefit (provision) related to net experience gains and losses arising during the period
|
1.2
|
0.3
|
3.2
|
1.3
|
||||||||||
Reclassification adjustment for amortization of prior net experience loss included in net income
|
18.6
|
12.1
|
56.6
|
36.3
|
||||||||||
Tax benefit related to reclassification adjustment for prior net experience loss
|
(6.6)
|
(4.3)
|
(20.3)
|
(13.0)
|
||||||||||
Prior service cost (credit) from plan amendment during the period
|
0.2
|
-
|
(12.0)
|
-
|
||||||||||
Tax benefit related to prior service cost from plan amendment during the period
|
-
|
-
|
4.2
|
-
|
||||||||||
Reclassification adjustment for amortization of prior service cost (credit) included in net income
|
1.1
|
0.9
|
2.9
|
2.7
|
||||||||||
Tax provision (benefit) related to reclassification adjustment for prior service cost (credit)
|
(0.2)
|
(0.3)
|
(0.7)
|
(0.9)
|
||||||||||
Deferred profit sharing
|
0.2
|
(0.1)
|
0.5
|
0.2
|
||||||||||
Benefit plan adjustments, net of tax
|
10.7
|
7.6
|
23.3
|
21.9
|
||||||||||
Foreign currency translation adjustments
|
11.9
|
(75.0)
|
1.0
|
(35.6)
|
||||||||||
Available-for-sale securities:
|
||||||||||||||
Unrealized net gains (losses) on available-for-sale securities arising during the period
|
0.3
|
(1.4)
|
0.8
|
1.9
|
||||||||||
Tax benefit (provision) related to unrealized net gains and losses on available-for-sale securities
|
(0.1)
|
0.5
|
(0.2)
|
0.1
|
||||||||||
Reclassification adjustment for net (gains) losses realized in net income
|
(0.7)
|
-
|
(2.8)
|
(4.4)
|
||||||||||
Tax provision (benefit) related to reclassification adjustment
|
0.2
|
-
|
1.0
|
0.9
|
||||||||||
Unrealized net gains (losses) on available-for-sale securities, net of tax
|
(0.3)
|
(0.9)
|
(1.2)
|
(1.5)
|
||||||||||
Other comprehensive income (loss)
|
22.3
|
(68.3)
|
23.1
|
(15.2)
|
||||||||||
Comprehensive income (loss)
|
$
|
40.5
|
(32.6)
|
97.2
|
58.4
|
|||||||||
Summary by Equity Interest
|
||||||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||
Net income
|
$
|
13.5
|
30.8
|
61.0
|
58.7
|
|||||||||
Benefit plan adjustments
|
10.5
|
7.6
|
26.2
|
21.9
|
||||||||||
Foreign currency
|
11.2
|
(72.5)
|
(0.8)
|
(33.8)
|
||||||||||
Available-for-sale securities
|
(0.3)
|
(0.9)
|
(1.2)
|
(1.6)
|
||||||||||
Other comprehensive income (loss)
|
21.4
|
(65.8)
|
24.2
|
(13.5)
|
||||||||||
Comprehensive income (loss) attributable to Brink’s
|
34.9
|
(35.0)
|
85.2
|
45.2
|
||||||||||
Amounts attributable to noncontrolling interests:
|
||||||||||||||
Net income
|
4.7
|
4.9
|
13.1
|
14.9
|
||||||||||
Benefit plan adjustments
|
0.2
|
-
|
(2.9)
|
-
|
||||||||||
Foreign currency
|
0.7
|
(2.5)
|
1.8
|
(1.8)
|
||||||||||
Available-for-sale securities
|
-
|
-
|
-
|
0.1
|
||||||||||
Other comprehensive income (loss)
|
0.9
|
(2.5)
|
(1.1)
|
(1.7)
|
||||||||||
Comprehensive income (loss) attributable to noncontrolling interests
|
5.6
|
2.4
|
12.0
|
13.2
|
||||||||||
Comprehensive income (loss)
|
$
|
40.5
|
(32.6)
|
97.2
|
58.4
|
|||||||||
See accompanying notes to consolidated financial statements.
|
Attributable to Brink’s
|
|||||||||||||||||||
Capital
|
Accumulated
|
Attributable
|
|||||||||||||||||
in Excess
|
Other
|
to
|
|||||||||||||||||
Common
|
of Par
|
Retained
|
Comprehensive
|
Noncontrolling
|
|||||||||||||||
(In millions)
|
Shares
|
Stock
|
Value
|
Earnings
|
Loss
|
Interests
|
Total
|
||||||||||||
Balance as of December 31, 2011
|
46.9
|
$
|
46.9
|
559.5
|
589.5
|
(787.9)
|
74.4
|
482.4
|
|||||||||||
Net income
|
-
|
-
|
-
|
61.0
|
-
|
13.1
|
74.1
|
||||||||||||
Other comprehensive income (loss)
|
-
|
-
|
-
|
-
|
24.2
|
(1.1)
|
23.1
|
||||||||||||
Shares contributed to pension plan (see note 6)
|
0.4
|
0.4
|
8.6
|
-
|
-
|
-
|
9.0
|
||||||||||||
Dividends:
|
|||||||||||||||||||
Brink’s common shareholders ($0.30 per share)
|
-
|
-
|
-
|
(14.2)
|
-
|
-
|
(14.2)
|
||||||||||||
Noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
(5.9)
|
(5.9)
|
||||||||||||
Share-based compensation
|
|||||||||||||||||||
Stock options and awards:
|
|||||||||||||||||||
Compensation expense
|
-
|
-
|
7.1
|
-
|
-
|
-
|
7.1
|
||||||||||||
Consideration from exercise of stock options
|
-
|
-
|
0.3
|
-
|
-
|
-
|
0.3
|
||||||||||||
Excess tax benefit (tax deficiency) of stock compensation
|
-
|
-
|
(2.5)
|
-
|
-
|
-
|
(2.5)
|
||||||||||||
Other share-based benefit programs
|
0.5
|
0.5
|
(4.1)
|
(0.3)
|
-
|
-
|
(3.9)
|
||||||||||||
Acquisitions of noncontrolling interests
|
-
|
-
|
(0.6)
|
-
|
0.1
|
(6.0)
|
(6.5)
|
||||||||||||
Capital contributions from noncontrolling interest
|
-
|
-
|
-
|
-
|
-
|
0.4
|
0.4
|
||||||||||||
Balance as of September 30, 2012
|
47.8
|
$
|
47.8
|
568.3
|
636.0
|
(763.6)
|
74.9
|
563.4
|
|||||||||||
See accompanying notes to consolidated financial statements.
|
Nine Months
|
|||||||||
Ended September 30,
|
|||||||||
(In millions)
|
2012
|
2011
|
|||||||
Cash flows from operating activities:
|
|||||||||
Net income
|
$
|
74.1
|
73.6
|
||||||
Adjustments to reconcile net income to net cash provided (used) by operating activities:
|
|||||||||
Income from discontinued operations, net of tax
|
-
|
(3.0)
|
|||||||
Depreciation and amortization
|
126.0
|
120.5
|
|||||||
Share-based compensation expense
|
7.1
|
5.3
|
|||||||
Deferred income taxes
|
(44.0)
|
(29.4)
|
|||||||
Gains and losses:
|
|||||||||
Sales of available-for-sale securities
|
(2.8)
|
(4.4)
|
|||||||
Sales of property and other assets
|
(7.7)
|
(1.2)
|
|||||||
Business acquisitions and dispositions
|
(0.8)
|
(9.2)
|
|||||||
Impairment losses
|
6.9
|
0.8
|
|||||||
Retirement benefit funding (more) less than expense:
|
|||||||||
Pension
|
(10.3)
|
6.6
|
|||||||
Other than pension
|
17.0
|
8.4
|
|||||||
Other operating
|
12.3
|
8.8
|
|||||||
Changes in operating assets and liabilities, net of effects of acquisitions:
|
|||||||||
Accounts receivable
|
(92.7)
|
(25.7)
|
|||||||
Accounts payable, income taxes payable and accrued liabilities
|
53.5
|
38.2
|
|||||||
Prepaid and other current assets
|
(11.5)
|
(24.1)
|
|||||||
Other
|
2.2
|
3.4
|
|||||||
Discontinued operations
|
-
|
1.4
|
|||||||
Net cash provided by operating activities
|
129.3
|
170.0
|
|||||||
Cash flows from investing activities:
|
|||||||||
Capital expenditures
|
(120.6)
|
(118.7)
|
|||||||
Acquisitions
|
(17.1)
|
(3.0)
|
|||||||
Available-for-sale securities:
|
|||||||||
Purchases
|
-
|
(0.5)
|
|||||||
Sales
|
15.0
|
12.6
|
|||||||
Cash proceeds from sale of property, equipment and investments
|
12.1
|
12.8
|
|||||||
Cash settlements of foreign currency derivatives
|
0.6
|
0.1
|
|||||||
Redemption of cash-surrender value of life insurance policies
|
6.2
|
-
|
|||||||
Other
|
4.2
|
-
|
|||||||
Net cash used by investing activities
|
(99.6)
|
(96.7)
|
|||||||
Cash flows from financing activities:
|
|||||||||
Borrowings (repayments) of debt:
|
|||||||||
|
Short-term debt
|
6.1
|
(14.8)
|
||||||
|
Long-term revolving credit facilities
|
26.5
|
(101.5)
|
||||||
Issuance of private placement notes
|
-
|
100.0
|
|||||||
Other long-term debt:
|
|||||||||
Borrowings
|
9.7
|
-
|
|||||||
|
Repayments
|
(22.2)
|
(21.3)
|
||||||
Cash proceeds from sale-leaseback transactions
|
-
|
14.7
|
|||||||
Acquisition of noncontrolling interests in subsidiaries
|
(5.9)
|
-
|
|||||||
Debt financing costs
|
(1.5)
|
(0.7)
|
|||||||
Dividends to:
|
|||||||||
Shareholders of Brink’s
|
(14.2)
|
(14.0)
|
|||||||
Noncontrolling interests in subsidiaries
|
(5.9)
|
(15.4)
|
|||||||
Proceeds from exercise of stock options
|
0.3
|
5.1
|
|||||||
Excess tax benefits associated with share-based compensation
|
-
|
1.1
|
|||||||
Minimum tax withholdings associated with share-based compensation
|
(5.6)
|
(2.5)
|
|||||||
Net cash used by financing activities
|
(12.7)
|
(49.3)
|
|||||||
Effect of exchange rate changes on cash
|
2.8
|
(6.5)
|
|||||||
Cash and cash equivalents:
|
|||||||||
Increase (decrease)
|
19.8
|
17.5
|
|||||||
Balance at beginning of period
|
182.9
|
183.0
|
|||||||
Balance at end of period
|
$
|
202.7
|
200.5
|
||||||
See accompanying notes to consolidated financial statements.
|
·
|
Cash-in-transit (“CIT”) – armored vehicle transportation
|
·
|
Automated teller machine (“ATM”) – replenishment and servicing, network infrastructure services
|
·
|
Global Services – transportation of valuables globally
|
·
|
Cash Management Services – supply chain management of cash
|
·
|
Payment Services – consumers pay utility and other bills at payment locations
|
·
|
Guarding Services – including airport security
|
Three Months
|
Nine Months
|
|||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||
Revenues:
|
||||||||||||
International
|
$
|
744.4
|
751.3
|
2,204.3
|
2,158.1
|
|||||||
North America
|
234.6
|
244.5
|
708.6
|
730.3
|
||||||||
Revenues
|
$
|
979.0
|
995.8
|
2,912.9
|
2,888.4
|
|||||||
Three Months
|
Nine Months
|
|||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||
Operating profit:
|
||||||||||||
International
|
$
|
50.8
|
61.4
|
148.1
|
132.8
|
|||||||
North America
|
8.3
|
8.7
|
25.5
|
25.9
|
||||||||
Segment operating profit
|
59.1
|
70.1
|
173.6
|
158.7
|
||||||||
Non-segment
|
(22.0)
|
(7.6)
|
(67.6)
|
(38.8)
|
||||||||
Operating profit
|
$
|
37.1
|
62.5
|
106.0
|
119.9
|
U.S. plans
|
Non-U.S. plans
|
Total
|
||||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||
Three months ended September 30,
|
||||||||||||||
Service cost
|
$
|
-
|
-
|
2.8
|
2.5
|
2.8
|
2.5
|
|||||||
Interest cost on projected benefit obligation
|
11.0
|
11.6
|
5.0
|
4.3
|
16.0
|
15.9
|
||||||||
Return on assets – expected
|
(14.9)
|
(16.2)
|
(3.0)
|
(3.0)
|
(17.9)
|
(19.2)
|
||||||||
Amortization of losses
|
9.7
|
7.0
|
0.9
|
0.5
|
10.6
|
7.5
|
||||||||
Amortization of prior service cost
|
-
|
-
|
0.6
|
0.4
|
0.6
|
0.4
|
||||||||
Settlement loss
|
1.0
|
-
|
1.5
|
0.7
|
2.5
|
0.7
|
||||||||
Net periodic pension cost
|
$
|
6.8
|
2.4
|
7.8
|
5.4
|
14.6
|
7.8
|
|||||||
Nine months ended September 30,
|
||||||||||||||
Service cost
|
$
|
-
|
-
|
8.2
|
7.8
|
8.2
|
7.8
|
|||||||
Interest cost on projected benefit obligation
|
33.0
|
34.7
|
13.9
|
12.9
|
46.9
|
47.6
|
||||||||
Return on assets – expected
|
(44.9)
|
(48.7)
|
(9.1)
|
(9.1)
|
(54.0)
|
(57.8)
|
||||||||
Amortization of losses
|
29.4
|
21.0
|
3.0
|
2.0
|
32.4
|
23.0
|
||||||||
Amortization of prior service cost
|
-
|
-
|
1.4
|
1.2
|
1.4
|
1.2
|
||||||||
Settlement loss
|
5.0
|
-
|
2.6
|
1.7
|
7.6
|
1.7
|
||||||||
Net periodic pension cost
|
$
|
22.5
|
7.0
|
20.0
|
16.5
|
42.5
|
23.5
|
UMWA plans
|
Black lung and other plans
|
Total
|
|||||||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
|||||||||
Three months ended September 30,
|
|||||||||||||||
Service cost
|
$
|
-
|
-
|
0.2
|
-
|
0.2
|
-
|
||||||||
Interest cost on accumulated postretirement benefit obligations
|
5.6
|
5.9
|
0.7
|
0.7
|
6.3
|
6.6
|
|||||||||
Return on assets – expected
|
(5.3)
|
(6.4)
|
-
|
-
|
(5.3)
|
(6.4)
|
|||||||||
Amortization of losses
|
5.1
|
3.8
|
0.4
|
0.1
|
5.5
|
3.9
|
|||||||||
Amortization of prior service cost
|
-
|
-
|
0.5
|
0.5
|
0.5
|
0.5
|
|||||||||
Net periodic pension cost
|
$
|
5.4
|
3.3
|
1.8
|
1.3
|
7.2
|
4.6
|
||||||||
Nine months ended September 30,
|
|||||||||||||||
Service cost
|
$
|
-
|
-
|
0.3
|
-
|
0.3
|
-
|
||||||||
Interest cost on accumulated postretirement benefit obligations
|
16.8
|
17.9
|
2.2
|
2.1
|
19.0
|
20.0
|
|||||||||
Return on assets – expected
|
(15.9)
|
(19.2)
|
-
|
-
|
(15.9)
|
(19.2)
|
|||||||||
Amortization of losses
|
15.6
|
11.3
|
1.0
|
0.3
|
16.6
|
11.6
|
|||||||||
Amortization of prior service cost
|
-
|
-
|
1.5
|
1.5
|
1.5
|
1.5
|
|||||||||
Net periodic pension cost
|
$
|
16.5
|
10.0
|
5.0
|
3.9
|
21.5
|
13.9
|
Three Months
|
Nine Months
|
|||||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||
Continuing operations
|
||||||||||||||
Provision (benefit) for income taxes (in millions)
|
$
|
14.7
|
20.9
|
20.8
|
37.9
|
|||||||||
Effective tax rate
|
44.7
|
%
|
36.5
|
%
|
21.9
|
%
|
34.9
|
%
|
Three Months
|
Nine Months
|
|||||||||||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||||||||||
Options Granted
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||
Number of shares underlying options, in thousands
|
182
|
290
|
389
|
290
|
||||||||||||||||
Weighted-average exercise price per share
|
$
|
22.56
|
31.47
|
22.47
|
31.47
|
|||||||||||||||
Assumptions used to estimate fair value
|
||||||||||||||||||||
Expected dividend yield (a):
|
||||||||||||||||||||
Weighted-average
|
1.8 %
|
1.3 %
|
1.8 %
|
1.3 %
|
||||||||||||||||
Range
|
1.8 %
|
1.3 %
|
1.8 %
|
1.3 %
|
||||||||||||||||
Expected volatility (b):
|
||||||||||||||||||||
Weighted-average
|
40 %
|
36 %
|
40 %
|
36 %
|
||||||||||||||||
Range
|
40 %
|
36 %
|
–
|
37 %
|
40 %
|
36 %
|
–
|
37 %
|
||||||||||||
Risk-free interest rate (c):
|
||||||||||||||||||||
Weighted-average
|
0.6 %
|
1.2 %
|
0.7 %
|
1.2 %
|
||||||||||||||||
Range
|
0.4 %
|
–
|
0.8 %
|
0.5 %
|
–
|
1.9 %
|
0.4 %
|
–
|
0.9 %
|
0.5 %
|
–
|
1.9 %
|
||||||||
Expected term in years (d):
|
||||||||||||||||||||
Weighted-average
|
4.3
|
3.8
|
4.3
|
3.8
|
||||||||||||||||
Range
|
3.3
|
–
|
5.3
|
1.9
|
–
|
5.3
|
3.3
|
–
|
5.3
|
1.9
|
–
|
5.3
|
||||||||
Weighted-average fair value estimates at grant date:
|
||||||||||||||||||||
In millions
|
$
|
1.2
|
2.4
|
2.5
|
2.4
|
|||||||||||||||
Fair value per share
|
$
|
6.31
|
8.17
|
6.30
|
8.17
|
|||||||||||||||
(a)
|
The expected dividend yield is the calculated yield on Brink’s common stock at the time of the grant.
|
(b)
|
The expected volatility was estimated after reviewing the historical volatility of our stock using daily close prices.
|
(c)
|
The risk-free interest rate was based on U.S. Treasury debt yields at the time of the grant.
|
(d)
|
The expected term of the options was based on our historical option exercise, expiration and post-vesting cancellation behaviors.
|
Nonvested Share Activity
|
|||||||||
Number of Shares
|
Weighted-Average
|
||||||||
2005
|
Directors’
|
Grant-Date
|
|||||||
(in thousands of shares, except per share amounts)
|
Plan
|
Plan
|
Total
|
Fair Value (a)
|
|||||
Balance as of December 31, 2011
|
299.6
|
15.8
|
315.4
|
$
|
25.99
|
||||
Granted
|
315.1
|
23.0
|
338.1
|
22.13
|
|||||
Cancelled awards
|
(13.5)
|
-
|
(13.5)
|
24.85
|
|||||
Vested
|
(184.9)
|
(15.8)
|
(200.7)
|
25.69
|
|||||
Balance as of September 30, 2012
|
416.3
|
23.0
|
439.3
|
$
|
23.20
|
||||
(a)
|
Fair value is measured at the date of grant based on the average of the high and low per share quoted sales price of Brink’s common stock, adjusted for a discount on units that do not receive or accrue dividends.
|
Three Months
|
Nine Months
|
|||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||
(In millions)
|
2012
|
2011
|
2012
|
2011
|
||||||
Weighted-average shares:
|
||||||||||
Basic (a)
|
48.5
|
48.0
|
48.4
|
47.8
|
||||||
Effect of dilutive stock options and awards
|
0.1
|
0.1
|
0.2
|
0.3
|
||||||
Diluted
|
48.6
|
48.1
|
48.6
|
48.1
|
||||||
Antidilutive stock options and awards excluded from denominator
|
2.2
|
2.7
|
2.5
|
2.2
|
||||||
(a)
|
We have deferred compensation plans for directors and certain of our employees. 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 units credited to employees and directors under the deferred compensation plans. Accordingly, included in basic shares are weighted-average units of 0.7 million in the three months and 1.0 million in the nine months ended September 30, 2012, and 1.2 million in the three months and 1.1 million in the nine months ended September 30, 2011.
|
Nine Months
|
|||||||
Ended September 30,
|
|||||||
(In millions)
|
2012
|
2011
|
|||||
Cash paid for:
|
|||||||
Interest
|
$
|
17.3
|
17.0
|
||||
Income taxes
|
73.9
|
60.0
|
September 30,
|
December 31,
|
||||||||
(In millions)
|
2012
|
2011
|
|||||||
Mutual funds
|
|||||||||
Cost
|
$
|
4.3
|
16.9
|
||||||
Gross unrealized gains
|
1.2
|
3.1
|
|||||||
Fair value
|
$
|
5.5
|
20.0
|
September 30,
|
December 31,
|
||||||
(In millions)
|
2012
|
2011
|
|||||
DTA bonds
|
|||||||
Carrying value
|
$
|
43.2
|
43.2
|
||||
Fair value
|
44.3
|
44.0
|
|||||
Unsecured notes issued in a private placement
|
|||||||
Carrying value
|
100.0
|
100.0
|
|||||
Fair value
|
109.6
|
106.4
|
·
|
armored vehicles transportation, which we refer to as cash-in-transit (“CIT”)
|
·
|
automated teller machine (“ATM”) - replenishment and servicing, network infrastructure services
|
·
|
arranging secure transportation of valuables over long distances and around the world (“Global Services”)
|
·
|
supply chain management of cash (“Cash Management Services”) including cash logistics services, deploying and servicing safes and safe control devices (e.g., our patented CompuSafe® service), coin sorting and wrapping, integrated check and cash processing services (“Virtual Vault Services”)
|
·
|
providing bill payment acceptance and processing services to utility companies and other billers (“Payment Services”)
|
·
|
security and guarding services (including airport security)
|
Third Quarter
|
%
|
Nine Months
|
%
|
|||||||||||||
(In millions, except per share amounts)
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
||||||||||
GAAP
|
||||||||||||||||
Revenues
|
$
|
979.0
|
995.8
|
(2)
|
$
|
2,912.9
|
2,888.4
|
1
|
||||||||
Segment operating profit (a)
|
59.1
|
70.1
|
(16)
|
173.6
|
158.7
|
9
|
||||||||||
Non-segment expense
|
(22.0)
|
(7.6)
|
189
|
(67.6)
|
(38.8)
|
74
|
||||||||||
Operating profit
|
37.1
|
62.5
|
(41)
|
106.0
|
119.9
|
(12)
|
||||||||||
Income from continuing operations (b)
|
13.5
|
31.5
|
(57)
|
61.0
|
55.7
|
10
|
||||||||||
Diluted EPS from continuing operations (b)
|
0.28
|
0.66
|
(58)
|
1.26
|
1.16
|
9
|
||||||||||
Non-GAAP (c)
|
||||||||||||||||
Revenues
|
$
|
979.0
|
995.8
|
(2)
|
$
|
2,912.9
|
2,888.4
|
1
|
||||||||
Segment operating profit (a)
|
60.4
|
71.6
|
(16)
|
180.4
|
172.8
|
4
|
||||||||||
Non-segment expense
|
(10.4)
|
(10.7)
|
(3)
|
(31.7)
|
(29.9)
|
6
|
||||||||||
Operating profit
|
50.0
|
60.9
|
(18)
|
148.7
|
142.9
|
4
|
||||||||||
Income from continuing operations (b)
|
24.5
|
28.7
|
(15)
|
71.6
|
64.5
|
11
|
||||||||||
Diluted EPS from continuing operations (b)
|
0.50
|
0.60
|
(17)
|
1.47
|
1.34
|
10
|
||||||||||
(a)
|
Segment operating profit is a non-GAAP measure when presented in any context other than prescribed by ASC Topic 280, Segment Reporting. The tables on pages 20 and 23 reconcile the measurement to operating profit, a GAAP measure. Disclosure of total segment operating profit enables investors to assess the total operating performance of Brink’s excluding non-segment income and expense. Forward-looking estimates related to total segment operating profit and non-segment income (expense) for 2012 are provided on page 31.
|
(b)
|
Amounts reported in this table are attributable to the shareholders of Brink’s and exclude earnings related to noncontrolling interests.
|
(c)
|
Non-GAAP earnings information is contained on pages 32 – 33, including reconciliation to amounts reported under GAAP.
|
Three Months
|
Nine Months
|
||||||||||
Ended September 30,
|
Ended September 30,
|
||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||
GAAP Diluted EPS
|
$
|
0.28
|
0.66
|
1.26
|
1.16
|
||||||
Exclude U.S. retirement plan expenses
|
0.18
|
0.09
|
0.56
|
0.27
|
|||||||
Exclude employee benefit settlement and acquisition-related severance
|
0.03
|
0.01
|
0.05
|
0.02
|
|||||||
Exclude gains and losses on acquisitions and asset dispositions
|
0.03
|
(0.14)
|
(0.01)
|
(0.20)
|
|||||||
Exclude Belgium settlement
|
-
|
-
|
-
|
0.13
|
|||||||
Exclude tax benefit from change in retiree health care funding strategy
|
-
|
-
|
(0.43)
|
-
|
|||||||
Adjust quarterly tax rate to full-year average rate
|
(0.01)
|
(0.02)
|
0.06
|
(0.05)
|
|||||||
Non-GAAP Diluted EPS
|
$
|
0.50
|
0.60
|
1.47
|
1.34
|
||||||
GAAP
|
||||||||||||||||||||
Organic
|
Acquisitions /
|
Currency
|
% Change
|
|||||||||||||||||
(In millions)
|
3Q '11
|
Change
|
Dispositions (b)
|
(c)
|
3Q '12
|
Total
|
Organic
|
|||||||||||||
Revenues:
|
||||||||||||||||||||
International:
|
||||||||||||||||||||
Latin America
|
$
|
375.1
|
43.6
|
0.6
|
(34.1)
|
385.2
|
3
|
12
|
||||||||||||
EMEA
|
335.9
|
22.5
|
-
|
(38.3)
|
320.1
|
(5)
|
7
|
|||||||||||||
Asia Pacific
|
40.3
|
0.9
|
-
|
(2.1)
|
39.1
|
(3)
|
2
|
|||||||||||||
International
|
751.3
|
67.0
|
0.6
|
(74.5)
|
744.4
|
(1)
|
9
|
|||||||||||||
North America
|
244.5
|
(8.9)
|
-
|
(1.0)
|
234.6
|
(4)
|
(4)
|
|||||||||||||
Total
|
$
|
995.8
|
58.1
|
0.6
|
(75.5)
|
979.0
|
(2)
|
6
|
||||||||||||
Operating profit:
|
||||||||||||||||||||
International
|
$
|
61.4
|
(1.0)
|
(4.7)
|
(4.9)
|
50.8
|
(17)
|
(2)
|
||||||||||||
North America
|
8.7
|
(0.3)
|
-
|
(0.1)
|
8.3
|
(5)
|
(3)
|
|||||||||||||
Segment operating profit
|
70.1
|
(1.3)
|
(4.7)
|
(5.0)
|
59.1
|
(16)
|
(2)
|
|||||||||||||
Non-segment (a)
|
(7.6)
|
(5.5)
|
(8.9)
|
-
|
(22.0)
|
189
|
72
|
|||||||||||||
Total
|
$
|
62.5
|
(6.8)
|
(13.6)
|
(5.0)
|
37.1
|
(41)
|
(11)
|
||||||||||||
Segment operating margin:
|
||||||||||||||||||||
International
|
8.2%
|
6.8%
|
||||||||||||||||||
North America
|
3.6%
|
3.5%
|
||||||||||||||||||
Segment operating margin
|
7.0%
|
6.0%
|
||||||||||||||||||
Non-GAAP
|
||||||||||||||||||||
Organic
|
Acquisitions /
|
Currency
|
% Change
|
|||||||||||||||||
(In millions)
|
3Q '11
|
Change
|
Dispositions (b)
|
(c)
|
3Q '12
|
Total
|
Organic
|
|||||||||||||
Revenues:
|
||||||||||||||||||||
International:
|
||||||||||||||||||||
Latin America
|
$
|
375.1
|
43.6
|
0.6
|
(34.1)
|
385.2
|
3
|
12
|
||||||||||||
EMEA
|
335.9
|
22.5
|
-
|
(38.3)
|
320.1
|
(5)
|
7
|
|||||||||||||
Asia Pacific
|
40.3
|
0.9
|
-
|
(2.1)
|
39.1
|
(3)
|
2
|
|||||||||||||
International
|
751.3
|
67.0
|
0.6
|
(74.5)
|
744.4
|
(1)
|
9
|
|||||||||||||
North America
|
244.5
|
(8.9)
|
-
|
(1.0)
|
234.6
|
(4)
|
(4)
|
|||||||||||||
Total
|
$
|
995.8
|
58.1
|
0.6
|
(75.5)
|
979.0
|
(2)
|
6
|
||||||||||||
Operating profit:
|
||||||||||||||||||||
International
|
$
|
62.1
|
(7.5)
|
0.2
|
(4.9)
|
49.9
|
(20)
|
(12)
|
||||||||||||
North America
|
9.5
|
1.1
|
-
|
(0.1)
|
10.5
|
11
|
12
|
|||||||||||||
Segment operating profit
|
71.6
|
(6.4)
|
0.2
|
(5.0)
|
60.4
|
(16)
|
(9)
|
|||||||||||||
Non-segment (a)
|
(10.7)
|
0.3
|
-
|
-
|
(10.4)
|
(3)
|
(3)
|
|||||||||||||
Total
|
$
|
60.9
|
(6.1)
|
0.2
|
(5.0)
|
50.0
|
(18)
|
(10)
|
||||||||||||
Segment operating margin:
|
||||||||||||||||||||
International
|
8.3%
|
6.7%
|
||||||||||||||||||
North America
|
3.9%
|
4.5%
|
||||||||||||||||||
Segment operating margin
|
7.2%
|
6.2%
|
||||||||||||||||||
(a)
|
Includes income and expense not allocated to segments (see page 26 for details).
|
(b)
|
Includes operating results and gains/losses on acquisitions, sales and exits of businesses. Also includes impairment charges related to businesses that we expect to dispose of in the near term.
|
(c)
|
Revenue and Segment Operating Profit: The “Currency” amount in the table is the summation of the monthly currency changes, plus (minus) the U.S. dollar amount of remeasurement currency gains (losses) of bolivar fuerte-denominated net monetary assets recorded under highly inflationary accounting rules related to the Venezuelan operations. The monthly currency change is equal to the Revenue or Operating Profit for the month in local currency, on a country-by-country basis, multiplied by the difference in rates used to translate the current period amounts to U.S. dollars versus the translation rates used in the year-ago month. The functional currency in Venezuela is the U.S. dollar under highly inflationary accounting rules. Remeasurement gains and losses under these rules are recorded in U.S. dollars but these gains and losses are not recorded in local currency. Local currency Revenue and Operating Profit used in the calculation of monthly currency change for Venezuela have been derived from the U.S. dollar results of the Venezuelan operations under U.S. GAAP (excluding remeasurement gains and losses) using current period currency exchange rates.
|
|
Amounts may not add due to rounding.
|
·
|
revenues in Latin America were 3% higher ($10 million)
|
·
|
revenues in EMEA were 5% lower ($16 million), and
|
·
|
revenues in Asia Pacific were 3% lower ($1 million).
|
·
|
write-offs of government receivables in Argentina ($4 million),
|
·
|
unfavorable currency impact ($2 million), and
|
·
|
increased severance charges,
|
·
|
write-offs of government receivables in Argentina ($4 million),
|
·
|
reduced profits in Venezuela, where we expect pressure to continue,
|
·
|
unfavorable currency impact ($2 million), and
|
·
|
increased severance charges.
|
·
|
impairment losses related to certain operations expected to be sold in the near term ($4 million), and
|
·
|
unfavorable currency impact ($3 million),
|
GAAP
|
||||||||||||||||||||
Organic
|
Acquisitions /
|
Currency
|
% Change
|
|||||||||||||||||
(In millions)
|
YTD '11
|
Change
|
Dispositions (b)
|
(c)
|
YTD '12
|
Total
|
Organic
|
|||||||||||||
Revenues:
|
||||||||||||||||||||
International:
|
||||||||||||||||||||
Latin America
|
$
|
1,067.9
|
168.4
|
0.6
|
(89.5)
|
1,147.4
|
7
|
16
|
||||||||||||
EMEA
|
976.5
|
52.9
|
0.3
|
(88.0)
|
941.7
|
(4)
|
5
|
|||||||||||||
Asia Pacific
|
113.7
|
6.2
|
-
|
(4.7)
|
115.2
|
1
|
5
|
|||||||||||||
International
|
2,158.1
|
227.5
|
0.9
|
(182.2)
|
2,204.3
|
2
|
11
|
|||||||||||||
North America
|
730.3
|
(14.6)
|
(2.6)
|
(4.5)
|
708.6
|
(3)
|
(2)
|
|||||||||||||
Total
|
$
|
2,888.4
|
212.9
|
(1.7)
|
(186.7)
|
2,912.9
|
1
|
7
|
||||||||||||
Operating profit:
|
||||||||||||||||||||
International
|
$
|
132.8
|
21.6
|
5.4
|
(11.7)
|
148.1
|
12
|
16
|
||||||||||||
North America
|
25.9
|
(0.3)
|
0.2
|
(0.3)
|
25.5
|
(2)
|
(1)
|
|||||||||||||
Segment operating profit
|
158.7
|
21.3
|
5.6
|
(12.0)
|
173.6
|
9
|
13
|
|||||||||||||
Non-segment (a)
|
(38.8)
|
(20.4)
|
(8.4)
|
-
|
(67.6)
|
74
|
53
|
|||||||||||||
Total
|
$
|
119.9
|
0.9
|
(2.8)
|
(12.0)
|
106.0
|
(12)
|
1
|
||||||||||||
Segment operating margin:
|
||||||||||||||||||||
International
|
6.2%
|
6.7%
|
||||||||||||||||||
North America
|
3.5%
|
3.6%
|
||||||||||||||||||
Segment operating margin
|
5.5%
|
6.0%
|
||||||||||||||||||
Non-GAAP
|
||||||||||||||||||||
Organic
|
Acquisitions /
|
Currency
|
% Change
|
|||||||||||||||||
(In millions)
|
YTD '11
|
Change
|
Dispositions (b)
|
(c)
|
YTD '12
|
Total
|
Organic
|
|||||||||||||
Revenues:
|
||||||||||||||||||||
International:
|
||||||||||||||||||||
Latin America
|
$
|
1,067.9
|
168.4
|
0.6
|
(89.5)
|
1,147.4
|
7
|
16
|
||||||||||||
EMEA
|
976.5
|
52.9
|
0.3
|
(88.0)
|
941.7
|
(4)
|
5
|
|||||||||||||
Asia Pacific
|
113.7
|
6.2
|
-
|
(4.7)
|
115.2
|
1
|
5
|
|||||||||||||
International
|
2,158.1
|
227.5
|
0.9
|
(182.2)
|
2,204.3
|
2
|
11
|
|||||||||||||
North America
|
730.3
|
(14.6)
|
(2.6)
|
(4.5)
|
708.6
|
(3)
|
(2)
|
|||||||||||||
Total
|
$
|
2,888.4
|
212.9
|
(1.7)
|
(186.7)
|
2,912.9
|
1
|
7
|
||||||||||||
Operating profit:
|
||||||||||||||||||||
International
|
$
|
144.6
|
15.2
|
0.2
|
(11.7)
|
148.3
|
3
|
11
|
||||||||||||
North America
|
28.2
|
4.0
|
0.2
|
(0.3)
|
32.1
|
14
|
14
|
|||||||||||||
Segment operating profit
|
172.8
|
19.2
|
0.4
|
(12.0)
|
180.4
|
4
|
11
|
|||||||||||||
Non-segment (a)
|
(29.9)
|
(1.8)
|
-
|
-
|
(31.7)
|
6
|
6
|
|||||||||||||
Total
|
$
|
142.9
|
17.4
|
0.4
|
(12.0)
|
148.7
|
4
|
12
|
||||||||||||
Segment operating margin:
|
||||||||||||||||||||
International
|
6.7%
|
6.7%
|
||||||||||||||||||
North America
|
3.9%
|
4.5%
|
||||||||||||||||||
Segment operating margin
|
6.0%
|
6.2%
|
||||||||||||||||||
|
Amounts may not add due to rounding.
|
|
See page 20 for footnote explanations.
|
·
|
revenues in Latin America were 7% higher ($80 million)
|
·
|
revenues in EMEA were down 4% ($35 million), and
|
·
|
revenues in Asia Pacific were 1% higher ($2 million).
|
·
|
organic growth of 16% ($168 million) driven by inflation-based price increases across the region, partially offset by
|
·
|
an unfavorable currency impact ($90 million).
|
·
|
organic growth in Mexico and Brazil,
|
·
|
higher profits in Venezuela, where a gain on a building sale ($7 million) more than offset continued pressure,
|
·
|
higher labor agreement expenses in the prior year period, and
|
·
|
a 2011 tax on equity in Colombia which did not recur in 2012,
|
·
|
write-offs of government receivables in Argentina ($4 million) and
|
·
|
unfavorable currency impact ($7 million).
|
·
|
write-offs of government receivables in Argentina ($4 million),
|
·
|
reduced profits in Venezuela, where we expect pressure to continue, and
|
·
|
unfavorable currency impact ($7 million),
|
·
|
organic growth in Mexico and Brazil,
|
·
|
higher labor agreement expenses in the prior year period, and
|
·
|
a 2011 tax on equity in Colombia which did not recur in 2012.
|
·
|
higher volumes in France, the United Kingdom, and the Netherlands, and
|
·
|
a commercial settlement in the Netherlands,
|
·
|
a 2011 $10 million settlement loss in Belgium,
|
·
|
organic improvement in France and Russia, and
|
·
|
a commercial settlement in the Netherlands,
|
·
|
impairment losses related to certain operations expected to be sold in the near term ($4 million) and
|
·
|
a special project in Germany in 2011 that did not recur in 2012.
|
·
|
organic improvement in France and Russia, and
|
·
|
a commercial settlement in the Netherlands,
|
GAAP
|
Three Months
|
Nine Months
|
||||||||||||||
Ended September 30,
|
%
|
Ended September 30,
|
%
|
|||||||||||||
(In millions)
|
2012
|
2011
|
change
|
2012
|
2011
|
change
|
||||||||||
General and administrative
|
$
|
(10.8)
|
(11.4)
|
(5)
|
(33.0)
|
(31.3)
|
5
|
|||||||||
Retirement costs (primarily former operations)
|
(11.5)
|
(6.2)
|
85
|
(36.7)
|
(18.6)
|
97
|
||||||||||
Gain on business acquisitions and dispositions
|
(0.1)
|
8.8
|
unfav
|
0.8
|
9.2
|
(91)
|
||||||||||
Royalty income
|
0.4
|
0.7
|
(43)
|
1.3
|
1.4
|
(7)
|
||||||||||
Gain on sale of property and other assets
|
-
|
0.5
|
(100)
|
-
|
0.5
|
(100)
|
||||||||||
Non-segment income (expense)
|
$
|
(22.0)
|
(7.6)
|
unfav
|
(67.6)
|
(38.8)
|
74
|
·
|
2011 results included $9 million in gains related to the sale of U.S. Document Destruction business ($7 million) and an adjustment to the bargain purchase gain in Mexico ($2 million), and
|
·
|
increased retirement costs ($5 million);
|
·
|
decreased general and administrative costs ($1 million).
|
·
|
increased retirement costs ($18 million),
|
·
|
2011 results included $9 million in gains related to the sale of U.S. Document Destruction business ($7 million) and an adjustment to the bargain purchase gain in Mexico ($2 million), and
|
·
|
higher general and administrative costs ($2 million) mainly due to higher expenses related to the appointment of a permanent CEO.
|
Non-GAAP
|
Three Months
|
Nine Months
|
||||||||||||||
Ended September 30,
|
%
|
Ended September 30,
|
%
|
|||||||||||||
(In millions)
|
2012
|
2011
|
change
|
2012
|
2011
|
change
|
||||||||||
General and administrative
|
$
|
(10.8)
|
(11.4)
|
(5)
|
(33.0)
|
(31.3)
|
5
|
|||||||||
Royalty income
|
0.4
|
0.7
|
(43)
|
1.3
|
1.4
|
(7)
|
||||||||||
Non-segment income (expense)
|
$
|
(10.4)
|
(10.7)
|
(3)
|
(31.7)
|
(29.9)
|
6
|
Three Months
|
Nine Months
|
||||||||||||||||
Ended September 30,
|
%
|
Ended September 30,
|
%
|
||||||||||||||
(In millions)
|
2012
|
2011
|
change
|
2012
|
2011
|
change
|
|||||||||||
Gains (losses) on sale of property and other assets
|
$
|
7.3
|
0.7
|
fav
|
7.7
|
1.2
|
fav
|
||||||||||
Impairment losses
|
(5.8)
|
(0.3)
|
unfav
|
(6.9)
|
(0.8)
|
unfav
|
|||||||||||
Share in earnings of equity affiliates
|
1.4
|
1.3
|
8
|
4.0
|
3.4
|
18
|
|||||||||||
Royalty income
|
0.4
|
0.7
|
(43)
|
1.4
|
1.4
|
-
|
|||||||||||
Gains (losses) on business acquisitions and dispositions
|
(0.1)
|
8.8
|
unfav
|
0.8
|
9.2
|
(91)
|
|||||||||||
Settlement loss related to Belgium bankruptcy
|
-
|
-
|
-
|
-
|
(10.1)
|
(100)
|
|||||||||||
Foreign currency items:
|
|||||||||||||||||
Transaction gains (losses)
|
(0.7)
|
(2.2)
|
(68)
|
(3.1)
|
(1.4)
|
unfav
|
|||||||||||
Hedge gains (losses)
|
0.9
|
1.8
|
(50)
|
0.1
|
1.6
|
(94)
|
|||||||||||
Other
|
1.1
|
0.2
|
fav
|
1.4
|
1.2
|
17
|
|||||||||||
Other operating income (expense)
|
$
|
4.5
|
11.0
|
(59)
|
5.4
|
5.7
|
(5)
|
·
|
$6 million in impairment losses, including $4 million in Europe,
|
·
|
a $7 million gain on sale of U.S. Document Destruction business in 2011, and
|
·
|
a $2 million bargain purchase gain adjustment recognized in 2011 related to the 2010 Mexico acquisition;
|
·
|
a $7 million gain on sale of real estate in Venezuela.
|
·
|
$7 million in impairment losses, including $4 million in Europe,
|
·
|
a $7 million gain on sale of U.S. Document Destruction business in 2011,
|
·
|
$3 million in higher hedging and foreign currency transaction losses, and
|
·
|
a $2 million bargain purchase gain adjustment recognized in 2011 related to the 2010 Mexico acquisition;
|
·
|
a $10 million settlement loss in 2011 related to Belgium bankruptcy, and
|
·
|
$8 million in gains on sale of property and other assets, including $7 million on the sale of real estate in Venezuela.
|
Interest expense
|
||||||||||||
Three Months
|
Nine Months
|
|||||||||||
Ended September 30,
|
%
|
Ended September 30,
|
%
|
|||||||||
(In millions)
|
2012
|
2011
|
change
|
2012
|
2011
|
change
|
||||||
Interest expense
|
$
|
5.7
|
6.5
|
(12)
|
17.4
|
18.2
|
(4)
|
|||||
Interest and other income (expense)
|
|||||||||||||
Three Months
|
Nine Months
|
||||||||||||
Ended September 30,
|
%
|
Ended September 30,
|
%
|
||||||||||
(In millions)
|
2012
|
2011
|
change
|
2012
|
2011
|
change
|
|||||||
Interest income
|
$
|
1.1
|
1.3
|
(15)
|
3.7
|
3.7
|
-
|
||||||
Gain on sale of available-for-sale securities
|
0.7
|
-
|
fav
|
2.8
|
4.4
|
(36)
|
|||||||
Foreign currency hedge gains (losses)
|
-
|
-
|
-
|
-
|
(1.2)
|
(100)
|
|||||||
Other
|
(0.3)
|
-
|
unfav
|
(0.2)
|
(0.1)
|
100
|
|||||||
Interest and other income (expense)
|
$
|
1.5
|
1.3
|
15
|
6.3
|
6.8
|
(7)
|
Three Months
|
Nine Months
|
|||||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||
Continuing operations
|
||||||||||||||
Provision (benefit) for income taxes (in millions)
|
$
|
14.7
|
20.9
|
20.8
|
37.9
|
|||||||||
Effective tax rate
|
44.7
|
%
|
36.5
|
%
|
21.9
|
%
|
34.9
|
%
|
Three Months
|
Nine Months
|
|||||||||||
Ended September 30,
|
%
|
Ended September 30,
|
%
|
|||||||||
(In millions)
|
2012
|
2011
|
change
|
2012
|
2011
|
change
|
||||||
Net income attributable to noncontrolling interests
|
$
|
4.7
|
4.9
|
(4)
|
13.1
|
14.9
|
(12)
|
GAAP
|
Non-GAAP
|
||||||||||||
(In millions)
|
Full-Year
|
Full-Year 2012
|
Full-Year
|
Full-Year 2012
|
|||||||||
2011
|
Estimate
|
2011
|
Estimate
|
||||||||||
Organic revenue growth
|
|||||||||||||
International
|
12 %
|
7% – 10%
|
12 %
|
7% – 10%
|
|||||||||
North America
|
-
|
(2)%
|
-
|
(2)%
|
|||||||||
Total
|
8 %
|
5% – 8%
|
8 %
|
5% – 8%
|
|||||||||
Currency impact on revenue
|
|||||||||||||
International
|
5 %
|
(5)% – (7)%
|
5 %
|
(5)% – (7)%
|
|||||||||
North America
|
1 %
|
(1)%
|
1 %
|
(1)%
|
|||||||||
Total
|
4 %
|
(3)% – (5)%
|
4 %
|
(3)% – (5)%
|
|||||||||
Segment margin
|
|||||||||||||
International
|
6.9 %
|
7.0% – 8.0%
|
7.3 %
|
7.0% – 8.0%
|
|||||||||
North America
|
3.2 %
|
3.6% – 4.1%
|
3.6 %
|
4.5% – 5.0%
|
|||||||||
Total
|
5.9 %
|
6.7%
|
6.3 %
|
6.7%
|
|||||||||
Non-segment expense:
|
|||||||||||||
General and administrative
|
$
|
43
|
43
|
$
|
43
|
43
|
|||||||
Retirement plans (a)
|
25
|
47
|
-
|
-
|
|||||||||
Royalty income
|
(2)
|
(2)
|
(2)
|
(2)
|
|||||||||
CEO retirement costs (b)
|
4
|
-
|
-
|
-
|
|||||||||
Gains on acquisitions and asset dispositions (c)
|
(10)
|
(1)
|
-
|
-
|
|||||||||
Non-segment Expense
|
$
|
60
|
87
|
$
|
41
|
41
|
|||||||
Effective income tax rate
|
38 %
|
26% – 29%
|
39 %
|
37% – 40%
|
|||||||||
Interest expense
|
$
|
24
|
21 – 24
|
$
|
24
|
21 – 24
|
|||||||
Net income attributable to
|
|||||||||||||
noncontrolling interests
|
$
|
24
|
19 – 23
|
$
|
23
|
17 – 21
|
|||||||
Fixed assets acquired:
|
|||||||||||||
Capital expenditures
|
$
|
196
|
190
|
$
|
196
|
190
|
|||||||
Capital leases (d)
|
43
|
20
|
43
|
20
|
|||||||||
Total
|
$
|
239
|
210
|
$
|
239
|
210
|
|||||||
Depreciation and amortization
|
$
|
162
|
165 – 180
|
$
|
162
|
165 – 180
|
|||||||
Amounts may not add due to rounding.
|
|||||||||||||
(a)
|
Costs related to U.S. retirement plans have been excluded from non-GAAP results.
|
(b)
|
Costs related to the 2011 retirement of the former CEO are excluded from non-GAAP results.
|
(c)
|
The following gains are excluded from non-GAAP results:
|
·
|
sale of the U.S. document destruction business ($6.7 million),
|
·
|
gains on acquisitions and dispositions ($2.5 million in 2011 and $0.8 million in 2012),
|
·
|
sales of former operating assets ($0.5 million) in 2011.
|
(d)
|
Includes capital leases for newly acquired assets only. Sales leaseback transactions that occurred during 2011 of $18 million for assets that were originally purchased and included as capital expenditures have been excluded from “Fixed assets acquired – capital leases.”
|
·
|
page 17 for organic revenue growth,
|
·
|
page 19 for segment operating margin,
|
·
|
page 26 non-segment expenses,
|
·
|
page 29 for effective income tax rate,
|
·
|
page 28 for interest expense,
|
·
|
page 30 for net income attributable to noncontrolling interests, and
|
·
|
page 35 for depreciation and amortization.
|
·
|
excluding retirement expenses related to frozen retirement plans and retirement plans from former operations,
|
·
|
without certain other income and expense items, and
|
·
|
to adjust the quarterly non-GAAP tax rates so that the non-GAAP tax rate in each of the quarters is equal to the full-year non-GAAP tax rate.
|
(In millions, except for per share amounts)
|
GAAP Basis
|
Gains and Losses on Acquisitions and Dispositions (a)
|
Employee Benefit Settlement and Severance Losses (b)
|
U.S. Retirement Plans (c)
|
Tax Benefit on Change in Health Care Funding Strategy (d)
|
Adjust Income Tax Rate (e)
|
Non-GAAP Basis
|
|||||||||||
Third Quarter 2012
|
||||||||||||||||||
Operating profit:
|
||||||||||||||||||
International
|
$
|
50.8
|
(2.9)
|
2.0
|
-
|
-
|
-
|
49.9
|
||||||||||
North America
|
8.3
|
-
|
-
|
2.2
|
-
|
-
|
10.5
|
|||||||||||
Segment operating profit
|
59.1
|
(2.9)
|
2.0
|
2.2
|
-
|
-
|
60.4
|
|||||||||||
Non-segment
|
(22.0)
|
0.1
|
-
|
11.5
|
-
|
-
|
(10.4)
|
|||||||||||
Operating profit
|
$
|
37.1
|
(2.8)
|
2.0
|
13.7
|
-
|
-
|
50.0
|
||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||||||
Income from continuing operations
|
$
|
13.5
|
1.3
|
1.4
|
8.6
|
-
|
(0.3)
|
24.5
|
||||||||||
Diluted EPS – continuing operations
|
0.28
|
0.03
|
0.03
|
0.18
|
-
|
(0.01)
|
0.50
|
|||||||||||
Nine Months 2012
|
||||||||||||||||||
Operating profit:
|
||||||||||||||||||
International
|
$
|
148.1
|
(2.9)
|
3.1
|
-
|
-
|
-
|
148.3
|
||||||||||
North America
|
25.5
|
-
|
-
|
6.6
|
-
|
-
|
32.1
|
|||||||||||
Segment operating profit
|
173.6
|
(2.9)
|
3.1
|
6.6
|
-
|
-
|
180.4
|
|||||||||||
Non-segment
|
(67.6)
|
(0.8)
|
-
|
36.7
|
-
|
-
|
(31.7)
|
|||||||||||
Operating profit
|
$
|
106.0
|
(3.7)
|
3.1
|
43.3
|
-
|
-
|
148.7
|
||||||||||
Amounts attributable to Brink’s:
|
||||||||||||||||||
Income from continuing operations
|
$
|
61.0
|
(0.5)
|
2.2
|
27.1
|
(20.9)
|
2.7
|
71.6
|
||||||||||
Diluted EPS – continuing operations
|
1.26
|
(0.01)
|
0.05
|
0.56
|
(0.43)
|
0.06
|
1.47
|
|||||||||||
(a)
|
To eliminate:
|
·
|
Gains related to the sale of investments in mutual fund securities ($1.9 million in the first quarter and $0.5 million in the third quarter). Proceeds from the sales were used to fund the settlement of pension obligations related to our former Chief Executive Officer and Chief Administrative Officer.
|
·
|
Gains and losses related to business acquisitions and dispositions. A $0.9 million gain was recognized in the second quarter and $0.1 million loss was recognized in the third quarter.
|
·
|
Third quarter gain on the sale of real estate in Venezuela ($7.2 million).
|
·
|
Third quarter impairment losses of $4.3 million on long-lived assets related to certain operations expected to be sold in the near term.
|
(b)
|
To eliminate employee benefit settlement and acquisition-related severance losses (Mexico and Argentina). Employee termination benefits in Mexico are accounted for under FASB ASC Topic 715, Compensation – Retirement Benefits.
|
(c)
|
To eliminate expenses related to U.S. retirement plans.
|
(d)
|
To eliminate tax benefit related to change in retiree health care funding strategy.
|
(e)
|
To adjust effective income tax rate in the interim period to be equal to the midpoint of the estimated range of the full-year non-GAAP effective income tax rate. The midpoint of the estimated range of the full-year non-GAAP effective tax rate for 2012 is 38.5%.
|
Non-GAAP Results – Reconciled to Amounts Reported Under GAAP (Continued)
|
|||||||||||||||||||
(In millions, except for per share amounts)
|
GAAP Basis
|
Gains on Acquisitions and Dispositions (a)
|
Belgium Settlement Charge (b)
|
Employee Benefit Settlement Losses (c)
|
U.S. Retirement Plans (d)
|
Adjust Income Tax Rate (e)
|
Non-GAAP Basis
|
||||||||||||
Third Quarter 2011
|
|||||||||||||||||||
Operating profit:
|
|||||||||||||||||||
International
|
$
|
61.4
|
-
|
-
|
0.7
|
-
|
-
|
62.1
|
|||||||||||
North America
|
8.7
|
-
|
-
|
-
|
0.8
|
-
|
9.5
|
||||||||||||
Segment operating profit
|
70.1
|
-
|
-
|
0.7
|
0.8
|
-
|
71.6
|
||||||||||||
Non-segment
|
(7.6)
|
(9.3)
|
-
|
-
|
6.2
|
-
|
(10.7)
|
||||||||||||
Operating profit
|
$
|
62.5
|
(9.3)
|
-
|
0.7
|
7.0
|
-
|
60.9
|
|||||||||||
Amounts attributable to Brink’s:
|
|||||||||||||||||||
Income from continuing operations
|
$
|
31.5
|
(6.6)
|
-
|
0.5
|
4.4
|
(1.1)
|
28.7
|
|||||||||||
Diluted EPS – continuing operations
|
0.66
|
(0.14)
|
-
|
0.01
|
0.09
|
(0.02)
|
0.60
|
||||||||||||
Nine Months 2011
|
|||||||||||||||||||
Operating profit:
|
|||||||||||||||||||
International
|
$
|
132.8
|
-
|
10.1
|
1.7
|
-
|
-
|
144.6
|
|||||||||||
North America
|
25.9
|
-
|
-
|
-
|
2.3
|
-
|
28.2
|
||||||||||||
Segment operating profit
|
158.7
|
-
|
10.1
|
1.7
|
2.3
|
-
|
172.8
|
||||||||||||
Non-segment
|
(38.8)
|
(9.7)
|
-
|
-
|
18.6
|
-
|
(29.9)
|
||||||||||||
Operating profit
|
$
|
119.9
|
(9.7)
|
10.1
|
1.7
|
20.9
|
-
|
142.9
|
|||||||||||
Amounts attributable to Brink’s:
|
|||||||||||||||||||
Income from continuing operations
|
$
|
55.7
|
(9.6)
|
6.4
|
1.2
|
13.2
|
(2.4)
|
64.5
|
|||||||||||
Diluted EPS – continuing operations
|
1.16
|
(0.20)
|
0.13
|
0.02
|
0.27
|
(0.05)
|
1.34
|
||||||||||||
(a)
|
To eliminate gain recognized on the sale of the U.S. Document Destruction business, gains on available-for-sale equity and debt securities, gains related to acquisition of controlling interest in subsidiaries that were previously accounted for as equity or cost method investments, and gains on sales of former operating assets, as follows:
|
Third Quarter 2011
|
Nine Months 2011
|
||||||||||||
(In millions, except per share amounts)
|
Operating
Profit
|
EPS
|
Operating
Profit
|
EPS
|
|||||||||
Sale of U.S. Document Destruction business
|
$
|
(6.7)
|
$
|
(0.09)
|
$
|
(6.7)
|
$
|
(0.09)
|
|||||
Gains on available-for-sale equity and debt securities
|
-
|
-
|
-
|
(0.05)
|
|||||||||
Acquisition of controlling interests
|
(2.1)
|
(0.04)
|
(2.5)
|
(0.05)
|
|||||||||
Sale of former operating assets
|
(0.5)
|
(0.01)
|
(0.5)
|
(0.01)
|
|||||||||
$
|
(9.3)
|
$
|
(0.14)
|
$
|
(9.7)
|
$
|
(0.20)
|
(b)
|
To eliminate settlement charge related to exit of Belgium cash-in-transit business.
|
(c)
|
To eliminate employee benefit settlement loss related to Mexico. Portions of Brink’s Mexican subsidiaries’ accrued employee termination benefit were paid in the second and third quarters of 2011. The employee termination benefit is accounted for under FASB ASC Topic 715, Compensation – Retirement Benefits. Accordingly, the severance payments resulted in settlement losses.
|
(d)
|
To eliminate expenses related to U.S. retirement plans.
|
(e)
|
To adjust the effective income tax rate to be equal to the full-year 2011 non-GAAP effective income tax rate of 38.6%.
|
Nine Months
|
||||||||||
Ended September 30,
|
$
|
|||||||||
(In millions)
|
2012
|
2011
|
change
|
|||||||
Cash flows from operating activities
|
||||||||||
Non-GAAP basis
|
$
|
129.1
|
176.6
|
(47.5)
|
||||||
Increase (decrease) in certain customer obligations (a)
|
0.2
|
(8.0)
|
8.2
|
|||||||
Discontinued operations (b)
|
-
|
1.4
|
(1.4)
|
|||||||
GAAP basis
|
$
|
129.3
|
170.0
|
(40.7)
|
||||||
(a)
|
To eliminate the change in the balance of customer obligations related to cash received and processed in certain of our secure cash logistics 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.
|
(b)
|
To eliminate cash flows related to our discontinued operations.
|
Nine Months
|
||||||||||
Ended September 30,
|
$
|
|||||||||
(In millions)
|
2012
|
2011
|
change
|
|||||||
Cash flows from investing activities
|
||||||||||
Capital expenditures
|
$
|
(120.6)
|
(118.7)
|
(1.9)
|
||||||
Acquisitions
|
(17.1)
|
(3.0)
|
(14.1)
|
|||||||
Proceeds from the sale of available-for-sale securities
|
15.0
|
12.6
|
2.4
|
|||||||
Other
|
23.1
|
12.4
|
10.7
|
|||||||
Investing activities
|
$
|
(99.6)
|
(96.7)
|
(2.9)
|
||||||
Nine Months
|
Full Year
|
||||||||||||||||
Ended September 30,
|
$
|
Full Year
|
Outlook
|
||||||||||||||
(In millions)
|
2012
|
2011
|
change
|
2011
|
2012
|
||||||||||||
Property and Equipment Acquired during the period
|
|||||||||||||||||
Capital expenditures:
|
|||||||||||||||||
International
|
$
|
82.4
|
85.6
|
(3.2)
|
144.8
|
(a)
|
|||||||||||
North America
|
38.2
|
33.1
|
5.1
|
51.4
|
(a)
|
||||||||||||
Capital expenditures
|
120.6
|
118.7
|
1.9
|
196.2
|
190
|
||||||||||||
Capital leases (b):
|
|||||||||||||||||
International
|
2.7
|
7.0
|
(4.3)
|
7.6
|
(a)
|
||||||||||||
North America
|
8.9
|
33.0
|
(24.1)
|
35.4
|
(a)
|
||||||||||||
Capital leases
|
11.6
|
40.0
|
(28.4)
|
43.0
|
20
|
||||||||||||
Total:
|
|||||||||||||||||
International
|
85.1
|
92.6
|
(7.5)
|
152.4
|
(a)
|
||||||||||||
North America
|
47.1
|
66.1
|
(19.0)
|
86.8
|
(a)
|
||||||||||||
Total
|
$
|
132.2
|
158.7
|
(26.5)
|
239.2
|
210
|
|||||||||||
Depreciation and amortization
|
|||||||||||||||||
International
|
$
|
78.9
|
78.6
|
0.3
|
105.8
|
(a)
|
|||||||||||
North America
|
47.1
|
41.9
|
5.2
|
56.6
|
(a)
|
||||||||||||
Depreciation and amortization
|
$
|
126.0
|
120.5
|
5.5
|
162.4
|
165 – 180
|
|||||||||||
(a)
|
Not provided
|
(b)
|
Represents the amount of property and equipment acquired using capital leases. Since the assets are acquired without using cash, the acquisitions are not reflected in the consolidated cash flow statement. Amounts are provided here to assist in the comparison of assets acquired in the current year versus prior years. Sales leaseback transactions are excluded from "Capital leases" in this table.
|
Nine Months
|
||||||||
Ended September 30,
|
||||||||
(In millions)
|
2012
|
2011
|
||||||
Cash provided (used) by financing activities
|
||||||||
Borrowings and repayments:
|
||||||||
Short-term debt
|
$
|
6.1
|
(14.8)
|
|||||
Long-term revolving credit facilities
|
26.5
|
(101.5)
|
||||||
Issuance of private placement notes
|
-
|
100.0
|
||||||
Other long-term debt
|
(12.5)
|
(21.3)
|
||||||
Borrowings (repayments)
|
20.1
|
(37.6)
|
||||||
Debt financing costs
|
(1.5)
|
(0.7)
|
||||||
Dividends attributable to:
|
||||||||
Shareholders of Brink’s
|
(14.2)
|
(14.0)
|
||||||
Noncontrolling interests in subsidiaries
|
(5.9)
|
(15.4)
|
||||||
Other
|
(11.2)
|
18.4
|
||||||
Cash flows from financing activities
|
$
|
(12.7)
|
(49.3)
|
September 30,
|
December 31,
|
|||||||
(In millions)
|
2012
|
2011
|
||||||
Debt:
|
||||||||
Short-term
|
$
|
32.6
|
25.4
|
|||||
Long-term
|
392.6
|
364.0
|
||||||
Total Debt
|
425.2
|
389.4
|
||||||
Cash and cash equivalents
|
202.7
|
182.9
|
||||||
Less amounts held by cash logistics operations (a)
|
(26.4)
|
(25.1)
|
||||||
Cash and cash equivalents available for general corporate purposes
|
176.3
|
157.8
|
||||||
Net Debt
|
$
|
248.9
|
231.6
|
|||||
(a)
|
Title to cash received and processed in certain of our secure cash logistics 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.
|
Funded Status of U.S. Retirement Plans
|
|||||||||||||
Actual
|
Actual
|
Projected
|
|||||||||||
(In millions)
|
2011
|
Nine Months 2012
|
4th Quarter 2012
|
2013
|
2014
|
2015
|
2016
|
||||||
U.S. pension plans
|
|||||||||||||
Beginning funded status
|
$
|
(191.7)
|
(305.3)
|
(256.6)
|
(256.2)
|
(224.7)
|
(170.4)
|
(96.1)
|
|||||
Net periodic pension credit (a)
|
18.8
|
11.9
|
4.3
|
16.2
|
22.3
|
28.1
|
33.3
|
||||||
Payment from Brink’s:
|
|||||||||||||
Primary U.S. pension plan (b)
|
-
|
22.4
|
-
|
14.0
|
32.0
|
46.0
|
50.0
|
||||||
Other U.S. pension plan
|
0.7
|
14.5
|
0.3
|
1.2
|
0.8
|
0.8
|
0.8
|
||||||
Benefit plan experience (loss) gain
|
(133.1)
|
(0.1)
|
(4.2)
|
0.1
|
(0.8)
|
(0.6)
|
0.1
|
||||||
Ending funded status
|
$
|
(305.3)
|
(256.6)
|
(256.2)
|
(224.7)
|
(170.4)
|
(96.1)
|
(11.9)
|
|||||
UMWA plans
|
|||||||||||||
Beginning funded status
|
$
|
(164.1)
|
(261.6)
|
(262.5)
|
(262.6)
|
(264.6)
|
(267.4)
|
(271.2)
|
|||||
Net periodic postretirement credit (cost) (a)
|
1.5
|
(0.9)
|
(0.1)
|
(2.0)
|
(2.8)
|
(3.8)
|
(4.7)
|
||||||
Benefit plan experience loss
|
(97.6)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||
Other
|
(1.4)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||
Ending funded status
|
$
|
(261.6)
|
(262.5)
|
(262.6)
|
(264.6)
|
(267.4)
|
(271.2)
|
(275.9)
|
|||||
Black lung and other plans
|
|||||||||||||
Beginning funded status
|
$
|
(62.2)
|
(60.9)
|
(58.1)
|
(56.3)
|
(52.8)
|
(49.4)
|
(46.2)
|
|||||
Net periodic postretirement cost (a)
|
(2.8)
|
(1.9)
|
(0.7)
|
(2.3)
|
(2.1)
|
(2.0)
|
(1.9)
|
||||||
Payment from Brink’s
|
7.0
|
4.7
|
2.5
|
5.8
|
5.5
|
5.2
|
5.0
|
||||||
Benefit plan experience loss
|
(2.9)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||
Ending funded status
|
$
|
(60.9)
|
(58.1)
|
(56.3)
|
(52.8)
|
(49.4)
|
(46.2)
|
(43.1)
|
|||||
(a)
|
Excludes amounts reclassified from accumulated other comprehensive income (loss).
|
(b)
|
New legislation titled Moving Ahead for Progress in the 21st Century was passed in July 2012 that has the effect of spreading the expected funding requirements for our primary U.S. pension plan over a longer period of time.
|
·
|
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
|
Actual
|
Actual
|
Projected
|
||||||||||||
(In millions)
|
2011
|
Nine Months 2012
|
4 th Quarter 2012
|
FY2012
|
2013
|
2014
|
2015
|
2016
|
||||||
U.S. pension plans
|
$
|
9.4
|
22.5
|
5.8
|
28.3
|
25.1
|
13.4
|
4.1
|
(3.9)
|
|||||
UMWA plans
|
13.2
|
16.5
|
5.5
|
22.0
|
22.6
|
22.5
|
22.5
|
22.6
|
||||||
Black lung and other plans
|
5.4
|
4.3
|
1.6
|
5.9
|
5.0
|
4.9
|
4.7
|
4.5
|
||||||
Total
|
$
|
28.0
|
43.3
|
12.9
|
56.2
|
52.7
|
40.8
|
31.3
|
23.2
|
|||||
Amounts allocated to:
|
||||||||||||||
North America Segment
|
$
|
3.2
|
6.6
|
2.2
|
8.8
|
9.5
|
5.0
|
1.4
|
(1.7)
|
|||||
Non-segment
|
24.8
|
36.7
|
10.7
|
47.4
|
43.2
|
35.8
|
29.9
|
24.9
|
||||||
Total
|
$
|
28.0
|
43.3
|
12.9
|
56.2
|
52.7
|
40.8
|
31.3
|
23.2
|
·
|
from Brink’s to U.S. retirement plans, and
|
·
|
from the plans to participants.
|
Actual
|
Actual
|
Projected
|
||||||||||||
(In millions)
|
2011
|
Nine Months 2012
|
4th Quarter 2012
|
FY2012
|
2013
|
2014
|
2015
|
2016
|
||||||
Payments from Brink’s to U.S. Plans
|
||||||||||||||
Primary U.S. pension plan (a)
|
$
|
-
|
22.4
|
-
|
22.4
|
14.0
|
32.0
|
46.0
|
50.0
|
|||||
Other U.S. pension plan
|
0.7
|
14.5
|
0.3
|
14.8
|
1.2
|
0.8
|
0.8
|
0.8
|
||||||
Black lung and other plans
|
7.0
|
4.7
|
2.5
|
7.2
|
5.8
|
5.5
|
5.2
|
5.0
|
||||||
Total
|
$
|
7.7
|
41.6
|
2.8
|
44.4
|
21.0
|
38.3
|
52.0
|
55.8
|
|||||
Payments from U.S. Plans to participants
|
||||||||||||||
Primary U.S. pension plan
|
$
|
39.0
|
27.4
|
15.0
|
42.4
|
43.7
|
45.2
|
46.4
|
47.8
|
|||||
Other U.S. pension plan
|
0.7
|
14.5
|
0.3
|
14.8
|
1.2
|
0.8
|
0.8
|
0.9
|
||||||
UMWA plans
|
39.1
|
25.1
|
11.8
|
36.9
|
37.5
|
37.4
|
37.5
|
36.9
|
||||||
Black lung and other plans
|
7.0
|
4.7
|
2.5
|
7.2
|
5.8
|
5.5
|
5.2
|
5.0
|
||||||
Total
|
$
|
85.8
|
71.7
|
29.6
|
101.3
|
88.2
|
88.9
|
89.9
|
90.6
|
|||||
(a)
|
see previous page note (b)
|
·
|
continuing market volatility and commodity price fluctuations and their impact on the demand for our services,
|
·
|
our ability to continue profit growth in Latin America,
|
·
|
our ability to maintain or improve volumes at favorable pricing levels and increase cost efficiencies in the United States and Europe,
|
·
|
investments in information technology and value-added services and their impact on revenue and profit growth,
|
·
|
our ability to implement high-value solutions,
|
·
|
risks customarily associated with operating in foreign countries including changing labor and economic conditions, currency devaluations, safety and security issues, political instability, restrictions on repatriation of earnings and capital, nationalization, expropriation and other forms of restrictive government actions,
|
·
|
the strength of the U.S. dollar relative to foreign currencies and foreign currency exchange rates,
|
·
|
the stability of the Venezuelan economy, changes in Venezuelan policy regarding foreign-owned businesses, and changes in exchange rates,
|
·
|
fluctuations in value of the Venezuelan bolivar fuerte,
|
·
|
regulatory and labor issues in many of our global operations, including negotiations with organized labor,
|
·
|
our ability to identify and execute further cost and operational improvements and efficiencies in our core businesses,
|
·
|
our ability to integrate successfully recently acquired companies and improve their operating profit margins,
|
·
|
the actions of competitors, our ability to identify acquisitions and other strategic opportunities in emerging markets,
|
·
|
the willingness of our customers to absorb fuel surcharges and other future price increases,
|
·
|
the impact of turnaround actions responding to current conditions in Europe and our productivity and cost control efforts in that region,
|
·
|
our ability to obtain necessary information technology and other services at favorable pricing levels from third party service providers,
|
·
|
variations in costs or expenses and performance delays of any public or private sector supplier, service provider or customer,
|
·
|
our ability to obtain appropriate insurance coverage, positions taken by insurers with respect to claims made and the financial condition of insurers, safety and security performance, our loss experience, changes in insurance costs,
|
·
|
security threats worldwide and losses of customer valuables,
|
·
|
costs associated with the purchase and implementation of cash processing and security equipment, employee and environmental liabilities in connection with our former coal operations, black lung claims incidence,
|
·
|
the impact of the Patient Protection and Affordable Care Act on black lung liability and the Company’s ongoing operations,
|
·
|
changes to estimated liabilities and assets in actuarial assumptions due to payments made, investment returns, interest rates and annual actuarial revaluations, the funding requirements, accounting treatment, investment performance and costs and expenses of our pension plans, the VEBA and other employee benefits, mandatory or voluntary pension plan contributions, the nature of our hedging relationships,
|
·
|
changes in estimates and assumptions underlying our critical accounting policies,
|
·
|
the outcome of pending and future claims and litigation,
|
·
|
access to the capital and credit markets,
|
·
|
seasonality, pricing and other competitive industry factors.
|
10.1
|
Key Employees’ Deferred Compensation Program, as amended and restated as of August 13, 2012.
|
31.1
|
Certification of Thomas C. Schievelbein, President and Chief Executive Officer (Principal Executive Officer) of The Brink’s Company, pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification of Joseph W. Dziedzic, Vice President and Chief Financial Officer (Principal Financial Officer) of The Brink’s Company, pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification of Thomas C. Schievelbein, President and Chief Executive Officer (Principal Executive Officer) of The Brink’s Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
Certification of Joseph W. Dziedzic, Vice President and Chief Financial Officer (Principal Financial Officer) of The Brink’s Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101
|
Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended September 30, 2012, furnished in XBRL (eXtensible Business Reporting Language)).
Attached as Exhibit 101 to this report are the following documents formatted in XBRL: (i) the Consolidated Balance Sheets at September 30, 2012, and December 31, 2011, (ii) the Consolidated Statements of Income for the three and nine months ended September 30, 2012 and 2011, (iii) the Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2012 and 2011, (iv) the Consolidated Statement of Equity for the nine months ended September 30, 2012, (v) the Consolidated Statements of Cash Flows for the nine months ended September 30, 2012 and 2011, and (vi) the Notes to 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
|
|
October 25, 2012
|
By: /s/ Joseph W. Dziedzic
|
Joseph W. Dziedzic
|
|
(Vice President and
|
|
Chief Financial Officer)
|
|
(principal financial officer)
|