What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-08-03 compared with 2022-05-10 · 311 added, 149 removed, 605 unchanged (43% of the section changed)

17 unchanged sentences

Our CODM is our President and Chief Executive Officer.

We completed a leadership change with our President and Chief Executive Officer in the second quarter of 2022.

Our CODM evaluates performance and allocates resources to each operating segment based on an operating profit or loss measure, excluding income and expenses not allocated to segments.

39 unchanged sentences

See definitions on page 39.

Ended March 31, %

(In millions, except for per share amounts) 2022 2021 Change

Ended June 30, % Six Months

Ended June 30, %

(In millions, except for per share amounts) 2022 2021 Change 2022 2021 Change

Revenues $ 1,133.9 1,048.8 8 2,207.9 2,026.5 9

9 unchanged sentences

Non-GAAP income from continuing operations (a)

61.8 58.1 6 117.3 98.2 19

Non-GAAP diluted EPS from continuing operations (a)

$ 1.29 1.15 12 2.44 1.94 26

(a) Amounts reported in this table are attributable to the shareholders of Brink’s and exclude earnings related to noncontrolling interests.

1 unchanged sentence

Analysis of Consolidated Results:

First Quarter 2022 versus First Quarter 2021

Consolidated Revenues Revenues increased $96.3 million due to organic increases in Latin America ($32.6 million), Europe ($22.5 million), North America ($18.5 million), and Rest of World ($13.7 million) and the favorable impact of acquisitions ($42.4 million), partially offset by the unfavorable impact of currency exchange rates ($33.4 million).

Second Quarter 2022 versus Second Quarter 2021

Consolidated Revenues Revenues increased $85.1 million due to organic increases in Latin America ($44.0 million), North America ($43.5 million), Europe ($24.6 million), and Rest of World ($22.5 million) and the favorable impact of acquisitions ($4.4 million), partially offset by the unfavorable impact of currency exchange rates ($53.9 million).

The unfavorable currency impact was driven primarily by the euro and the Argentine peso.

Revenues increased 9% on an organic basis primarily due to volume recovery versus prior year period results which were more impacted by the COVID-19 pandemic, as well as price increases in the U.S.

and Argentina.

Revenues increased 13% on an organic basis primarily due to higher volume and inflation-based price increases.

See above for our definition of “organic growth.”

Consolidated Costs and Expenses Cost of revenues increased 11% to $ 839.7 million primarily due to higher labor and other operational costs driven by volume recovery including wage increases in the U.S., the impact of acquisitions, and higher costs incurred related to restructuring actions, partially offset by the impact of currency exchange rates.

Selling, general and administrative costs increased 11% to $ 171.6 million primarily due to the unfavorable impact of a change in allowance estimate ($16.7 million) recorded in the first-quarter 2022, due to a modification in our methodology to estimate the allowance for doubtful accounts, higher costs related to restructuring actions and the operating impact of acquisitions, partially offset by the impact of currency exchange rates and lower acquisition and integration costs.

Consolidated Costs and Expenses Cost of revenues increased 6% to $ 867.5 million primarily due to higher labor and other operational costs driven by volume recovery and wage increases in the U.S., partially offset by the impact of currency exchange rates, lower costs related to restructuring actions, and the impact of acquisitions, including integration costs.

Selling, general and administrative costs increased 8% to $ 167.5 million primarily due to organic increases in labor and other administrative costs, partially offset by the impact of currency exchange rates, lower costs related to restructuring actions, and due to the impact of acquisitions, including integration costs.

Consolidated Operating Profit Operating profit increased $23.2 million due mainly to:

• organic increases in Latin America ($12.2 million), Rest of World ($9.9 million), and Europe ($6.4 million),

• lower costs incurred related to reorganization and restructuring ($12.4 million) included in "Other items not allocated to segments",

• lower costs related to business acquisitions and dispositions ($4.9 million), including the impact of acquisition-related charges and intangible asset amortization in 2022, included in "Other items not allocated to segments", and

• the favorable operating impact of business acquisitions ($0.8 million), excluding intangible amortization and acquisition-related charges,

partially offset by:

• unfavorable changes in currency exchange rates ($12.3 million), driven by the Argentine peso and the euro,

• an organic decrease in North America ($7.5 million), and

• higher corporate expenses on an organic basis ($2.0 million).

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $11.2 million to $35.2 million due to the increase in operating profit mentioned above, partially offset by higher income tax expense ($6.6 million), higher interest expense ($4.2 million), and lower interest and other non-operating income ($1.2 million).

Earnings per share from continuing operations was $0.73, up from $0.47 in the second quarter of 2021.

Analysis of Consolidated Results:

First Half 2022 versus First Half 2021

Consolidated Revenues Revenues increased $181.4 million due to organic increases in Latin America ($76.6 million), North America ($62.0 million), Europe ($47.1 million), and Rest of World ($36.2 million) and the favorable impact of acquisitions ($46.8 million), partially offset by the unfavorable impact of currency exchange rates ($87.3 million).

The unfavorable currency impact was driven primarily by the euro and the Argentine peso.

Revenues increased 11% on an organic basis primarily due to higher volume and inflation-based price increases.

See above for our definition of “organic growth.”

Consolidated Costs and Expenses Cost of revenues increased 8% to $ 1,707.2 million primarily due to higher labor and other operational costs driven by volume recovery and wage increases in the U.S., and the impact of acquisitions, partially offset by the impact of currency exchange rates and lower costs related to restructuring actions.

Selling, general and administrative costs increased 9% to $ 339.1 million primarily due to the unfavorable impact of a change in allowance estimate ($16.7 million) recorded in the first-quarter 2022 due to a modification in our methodology to estimate the allowance for doubtful accounts, organic increases in labor and other administrative costs, partially offset by the impact of currency exchange rates.

Consolidated Operating Profit Operating profit increased $23.9 million due mainly to:

• organic increases in Latin America ($20.7 million), Rest of World ($12.4 million), and Europe ($11.5 million),

• lower corporate expenses on an organic basis ($14.4 million),

• organic increases in Latin America ($8.5 million), Europe ($5.1 million), and Rest of World ($2.5 million),

• the favorable operating impact of business acquisitions ($6.9 million), excluding intangible amortization and acquisition-related charges, and

• lower costs related to business acquisitions and dispositions ($8.4 million), including the impact of acquisition-related charges and intangible asset amortization in 2022, included in "Other items not allocated to segments",

• favorable operating impact of business acquisitions ($7.7 million), excluding intangible amortization and acquisition-related charges, and

• lower costs incurred related to reorganization and restructuring ($7.3 million) included in "Other items not allocated to segments".

partially offset by:

• The following items included in "Other items not allocated to segments":

◦ unfavorable impact of a change in allowance estimate ($16.7 million) recorded in the first-quarter 2022, due to a modification in our methodology to estimate the allowance for doubtful accounts,

◦ higher costs incurred related to reorganization and restructuring ($5.1 million),

• an organic decrease in North America ($13.7 million), and

• unfavorable changes in currency exchange rates ($5.6 million), driven by the Argentine peso and the euro.

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $58.7 million to $71.4 million due to lower income tax expense ($54.7 million), lower interest and other non-operating expense ($4.2 million), and the increase in operating profit mentioned above, slightly offset by higher interest expense ($0.7 million) and higher non-controlling interest ($0.2 million).

Earnings per share from continuing operations was $1.48, up from $0.25 in the first quarter of 2021.

• an organic decrease in North America ($21.2 million),

• unfavorable changes in currency exchange rates ($17.9 million), driven by the Argentine peso and the euro, and

• unfavorable impact of a change in allowance estimate ($16.7 million) recorded in the first-quarter 2022 due to a modification in our methodology to estimate the allowance for doubtful accounts, included in "Other items not allocated to segments".

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $69.9 million to $106.6 million due to lower income tax expense ($48.1 million), the increase in operating profit mentioned above and higher interest and other non-operating income ($3.0 million), slightly offset by higher interest expense ($4.9 million) and higher non-controlling interest ($0.2 million).

Earnings per share from continuing operations was $2.22, up from $0.73 in the first half of 2021.

Non-GAAP Basis

Analysis of Consolidated Results:

First Quarter 2022 versus First Quarter 2021

Non-GAAP Consolidated Revenues Non-GAAP revenues increased $96.3 million due to organic increases in Latin America ($32.6 million), Europe ($22.5 million), North America ($18.5 million), and Rest of World ($13.7 million) and the favorable impact of acquisitions ($42.4 million), partially offset by the unfavorable impact of currency exchange rates ($33.4 million).

Second Quarter 2022 versus Second Quarter 2021

Non-GAAP Consolidated Revenues Non-GAAP revenues increased $85.1 million due to organic increases in Latin America ($44.0 million), North America ($43.5 million), Europe ($24.6 million), and Rest of World ($22.5 million) and the favorable impact of acquisitions ($4.4 million), partially offset by the unfavorable impact of currency exchange rates ($53.9 million).

The unfavorable currency impact was driven primarily by the euro and the Argentine peso.

Revenues increased 9% on an organic basis primarily due to volume recovery versus prior year period results which were more impacted by the COVID-19 pandemic, as well as price increases in the U.S.

and Argentina.

Revenues increased 13% on an organic basis primarily due to higher volume and inflation-based price increases.

See above for our definition of “organic growth.”

Non-GAAP Consolidated Operating Profit Non-GAAP operating profit increased $13.4 million due mainly to:

• lower corporate expenses on an organic basis ($16.4 million),

• organic increases in Latin America ($8.5 million), Europe ($5.1 million), and Rest of World ($2.5 million) and

• organic increases in Latin America ($12.2 million), Rest of World ($9.9 million), and Europe ($6.4 million) and

• the favorable operating impact of business acquisitions ($0.8 million), excluding intangible amortization and acquisition-related charges,

partially offset by:

• an organic decrease in North America ($7.5 million),

• unfavorable changes in currency exchange rates ($6.4 million), driven primarily by the Argentine peso and the euro and

• higher corporate expenses on an organic basis ($2.0 million).

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders increased $3.7 million to $61.8 million due to the operating profit increase mentioned above and lower non-controlling interest ($0.5 million), partially offset by lower interest and other non-operating income ($5.7 million), higher interest expense ($4.4 million), and higher income tax expense ($0.1 million).

Earnings per share from continuing operations was $1.29, up from $1.15 in the second quarter of 2021.

Analysis of Consolidated Results:

First Half 2022 versus First Half 2021

Non-GAAP Consolidated Revenues Non-GAAP revenues increased $181.4 million due to organic increases in Latin America ($76.6 million), North America ($62.0 million), Europe ($47.1 million), and Rest of World ($36.2 million) and the favorable impact of acquisitions ($46.8 million), partially offset by the unfavorable impact of currency exchange rates ($87.3 million).

The unfavorable currency impact was driven primarily by the euro and the Argentine peso.

Revenues increased 11% on an organic basis primarily due to higher volume and inflation-based price increases.

See above for our definition of “organic growth.”

Non-GAAP Consolidated Operating Profit Non-GAAP operating profit increased $35.4 million due mainly to:

• organic increases in Latin America ($20.7 million), Rest of World ($12.4 million), and Europe ($11.5 million),

• lower corporate expenses on an organic basis ($14.4 million), and

• the favorable operating impact of business acquisitions ($7.7 million), excluding intangible amortization and acquisition-related charges,

partially offset by:

• an organic decrease in North America ($21.2 million) and

• unfavorable changes in currency exchange rates ($10.1 million), driven primarily by the Argentine peso and the euro.

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders increased $15.6 million to $55.7 million due to the operating profit increase mentioned above and higher interest and other non-operating income ($0.6 million), partially offset by higher income tax expense ($6.2 million), higher interest expense ($0.6 million), and higher non-controlling interest ($0.2 million).

Earnings per share from continuing operations was $1.15, up from $0.79 in the first quarter of 2021.

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders increased $19.1 million to $117.3 million due to the operating profit increase mentioned above and lower non-controlling interest ($0.3 million), partially offset by higher income tax expense ($6.5 million), lower interest and other non-operating income ($5.1 million), and higher interest expense ($5.0 million).

Earnings per share from continuing operations was $2.44, up from $1.94 in the first half of 2021.

Revenues and Operating Profit by Segment:

First Quarter 2022 versus First Quarter 2021

Second Quarter 2022 versus Second Quarter 2021

Organic Acquisitions / % Change

9 unchanged sentences

Operating profit:

North America (f)

$ 32.3 (13.7) 5.8 — 24.4 (24) (42)

North America $ 41.1 (7.5) 0.5 — 34.1 (17) (18)

Latin America 57.1 12.2 0.1 (4.7) 64.7 13 21

2 unchanged sentences

Segment operating profit 148.8 21.0 0.8 (9.9) 160.7 8 14

Corporate (d)(f)

Corporate (d)

(38.2) (2.0) — 3.5 (36.7) (4) 5

16 unchanged sentences

Analysis of Segment Results:

First Quarter 2022 versus First Quarter 2021

Second Quarter 2022 versus Second Quarter 2021

North America

Revenues increased 16% ($51.7 million) primarily due to the favorable impact of the PAI acquisition ($33.2 million) and a 6% organic increase ($18.5 million).

Revenues increased 13% ($44.8 million) primarily due to a 12% organic increase ($43.5 million) and the favorable impact of acquisitions ($2.6 million).

Organic revenue increased primarily due to price increases in the U.S.

Operating profit decreased $7.9 million, primarily due to a 42% organic decrease ($13.7 million), partially offset by the favorable impact of the PAI acquisition ($5.8 million).

The organic decrease was driven by the impact of bad debt expense versus the prior year and higher labor costs due to wage increases in the U.S.

Operating profit decreased $7.0 million, primarily due to a 18% organic decrease ($7.5 million), partially offset by the favorable impact of acquisitions ($0.5 million).

The organic decrease resulted primarily from several prior year one-time adjustments related to various insurance-related costs and bad-debt reversals in the U.S., and lower government COVID-19 assistance in Canada.

The decrease was partially offset by price increases which outpaced the impact of labor and other cost increases.

Latin America

Revenues increased 12% ($33.5 million) primarily due to a 16% organic increase ($44.0 million) and the favorable impact of acquisitions ($1.0 million), partially offset by the unfavorable impact of currency exchange rates ($11.5 million), primarily from the Argentine peso and partially offset by the Brazilian real.

The organic increase was primarily driven by inflation-based price increases in Argentina, as well as organic growth in Mexico from price increases and volume growth versus prior year period results which were more impacted by the COVID-19 pandemic.

Operating profit was up 13% ($7.6 million) primarily due to a 21% organic increase ($12.2 million) and the favorable impact of acquisitions ($0.1 million), partially offset by the unfavorable impact of currency exchange rates ($4.7 million).

The organic profit increase was driven by volume growth in Argentina and Mexico as well as the benefit of labor and other operational cost saving actions, which includes those taken in response to the COVID-19 pandemic.

Revenues decreased 2% ($4.1 million) due to the unfavorable impact of currency exchange rates ($29.5 million), partially offset by a 11% organic increase ($24.6 million) and the favorable impact of acquisitions ($0.8 million).

The unfavorable currency impact was driven by the euro.

The organic increase was primarily due to organic volume growth in France, including the impact of the partial implementation of an ATM managed services contract for a large customer, and across the segment.

Operating profit increased $3.7 million to $22.4 million primarily due to a 34% organic increase ($6.4 million) and the favorable impact of acquisitions ($0.2 million), partially offset by the unfavorable impact of currency exchange rates ($2.9 million).

The organic increase was primarily driven by volume growth and the impact of labor and other operational cost saving actions in France and throughout the segment, including those taken in response to the COVID-19 pandemic.

This growth was partially offset by lower government COVID-19 assistance in several countries.

Rest of World

Revenues increased 6% ($10.9 million) due to an 12% organic increase ($22.5 million), partially offset by the unfavorable impact of currency exchange rates ($11.6 million).

The organic increase was primarily due to global services growth.

The unfavorable currency impact was driven by most currencies throughout the segment.

Operating profit increased $7.6 million due to a 31% organic increase ($9.9 million), partially offset by the unfavorable impact of currency exchange rates ($2.3 million).

The organic increase was primarily due to global services growth and the impact of labor and other operational cost saving actions, including those taken in response to COVID-19.

Revenues and Operating Profit by Segment:

First Half 2022 versus First Half 2021

Organic Acquisitions / % Change

(In millions) YTD '21 Change Dispositions (a)

YTD '22 Total Organic

North America $ 673.9 62.0 35.8 (1.3) 770.4 14 9

Latin America 542.5 76.6 2.1 (23.6) 597.6 10 14

Europe 445.2 47.1 2.6 (46.1) 448.8 1 11

Rest of World 364.9 36.2 6.3 (16.3) 391.1 7 10

Segment revenues (c)

2,026.5 221.9 46.8 (87.3) 2,207.9 9 11

Revenues - GAAP $ 2,026.5 221.9 46.8 (87.3) 2,207.9 9 11

Operating profit:

North America (f)

$ 73.4 (21.2) 6.3 — 58.5 (20) (29)

Latin America 115.8 20.7 0.2 (9.0) 127.7 10 18

Europe 29.3 11.5 0.4 (4.0) 37.2 27 39

Rest of World 62.3 12.4 0.8 (2.9) 72.6 17 20

Segment operating profit 280.8 23.4 7.7 (15.9) 296.0 5 8

Corporate (d)(f)

(80.1) 14.4 — 5.8 (59.9) (25) (18)

Operating profit - non-GAAP 200.7 37.8 7.7 (10.1) 236.1 18 19

Other items not allocated to segments (e)

(65.7) (12.1) 8.4 (7.8) (77.2) 18 18

Operating profit - GAAP $ 135.0 25.7 16.1 (17.9) 158.9 18 19

Amounts may not add due to rounding.

See page 39 for footnote explanations.

Analysis of Segment Results:

First Half 2022 versus First Half 2021

North America

Revenues increased 14% ($96.5 million) primarily due to a 9% organic increase ($62.0 million) and the favorable impact of acquisitions ($35.8 million), partially offset by the unfavorable impact of currency exchange rates ($1.3 million) from the Canadian dollar.

Organic revenue increased primarily due to price increases in the U.S.

Operating profit decreased $14.9 million, primarily due to a 29% organic decrease ($21.2 million) partially offset by the favorable impact of acquisitions ($6.3 million).

The decrease was partially offset by price increases which outpaced the impact of labor and other cost increases.

The change in bad debt expense was driven by a first quarter of 2021 change to the allowance for doubtful accounts calculation method for the segment’s U.S.

9 unchanged sentences

aged receivables.

In the second quarter of 2022, the additional allowance was reduced by $0.4 million as a result of collections.

However, as discussed in Note 1 this amount was recorded as part of "Other items not allocated to segments" and is not included in the North America segment results.

1 unchanged sentence

Revenues increased 10% ($55.1 million) primarily due to a 14% organic increase ($76.6 million) and the favorable impact of acquisitions ($2.1 million), partially offset by the unfavorable impact of currency exchange rates ($23.6 million), primarily from the Argentine peso and partially offset by the Brazilian real.

Operating profit was up 7% ($4.3 million) primarily due to a 14% organic increase ($8.5 million), including the benefit

of labor and other operational cost saving actions, which includes those taken in response to the COVID-19 pandemic, and the favorable impact of acquisitions and dispositions ($0.1 million), partially offset by the unfavorable impact of currency exchange rates ($4.3 million).

The organic profit increase was driven by growth in Argentina and Mexico.

The organic increase was driven by inflation-based price increases in Argentina, as well as organic growth in Mexico from price increases and volume growth versus prior year period results which were more impacted by the COVID-19 pandemic.

Operating profit was up 10% ($11.9 million) primarily due to a 18% organic increase ($20.7 million) and the favorable impact of acquisitions ($0.2 million), partially offset by unfavorable currency ($9.0 million).

The organic increase was driven by volume growth in Argentina and Mexico as well as the benefit of labor and other operational cost saving actions, which includes those taken in response to the COVID-19 pandemic.

Revenues increased 1% ($3.6 million) due to a 11% organic increase ($47.1 million) and the favorable impact of acquisitions ($2.6 million), partially offset by the unfavorable impact of currency exchange rates ($46.1 million).

The organic increase was primarily due to organic growth in France, including the impact of the partial implementation of an ATM managed services contract for a large customer, and across the segment.

The unfavorable currency impact was driven by the euro.

Operating profit increased $4.2 million to $14.8 million primarily due to a 48% organic increase ($5.1 million) and the favorable impact of acquisitions ($0.2 million), partially offset by the unfavorable impact of currency exchange rates ($1.1 million).

Operating profit increased $7.9 million primarily due to an organic increase ($11.5 million) and the favorable impact of acquisitions ($0.4 million), partially offset by the unfavorable impact of currency exchange rates ($4.0 million).

1 unchanged sentence

Rest of World

Revenues increased 9% ($15.3 million) due to an 8% organic increase ($13.7 million) and the favorable impact of acquisitions ($6.3 million), partially offset by the unfavorable impact of currency exchange rates ($4.7 million).

Revenues increased 7% ($26.2 million) due to a 10% organic increase ($36.2 million) and the favorable impact of acquisitions ($6.3 million), partially offset by the unfavorable impact of currency exchange rates ($16.3 million).

The organic increase was primarily due to global services growth.

The unfavorable currency impact was driven by most currencies throughout the segment.

Operating profit increased $2.7 million due to an 8% organic increase ($2.5 million) and the favorable impact of acquisitions ($0.8 million), partially offset by the unfavorable impact of currency exchange rates ($0.6 million).

The currency impact was driven by most currencies throughout the segment.

Operating profit increased $10.3 million primarily due to a 20% organic increase ($12.4 million) and the favorable impact of acquisitions ($0.8 million), partially offset by the unfavorable impact of currency exchange rates ($2.9 million), driven by most currencies throughout the segment.

The organic increase was primarily due to global services growth and the impact of labor and other operational cost saving actions, including those taken in response to COVID-19.

1 unchanged sentence

Corporate Expenses

Ended March 31, %

(In millions) 2022 2021 change

Ended June 30, % Six Months

Ended June 30, %

(In millions) 2022 2021 change 2022 2021 change

General, administrative and other expenses $ (39.9) (38.5) 4 $ (68.4) (68.6) —

Foreign currency transaction gains (losses) 2.4 0.1 fav

Reconciliation of segment policies to GAAP 2.9 (11.9) fav

Foreign currency transaction gains (losses) 3.4 (0.1) fav 5.8 — fav

Reconciliation of segment policies to GAAP (0.2) 0.4 unfav 2.7 (11.5) fav

Corporate expenses $ (36.7) (38.2) (4) $ (59.9) (80.1) (25)

Corporate expenses include corporate headquarters costs, regional management costs, currency transaction gains and losses, costs related to global initiatives and adjustments to reconcile segment accounting policies to U.S.

Corporate expenses for the first three months of 2022 decreased $18.7 million versus the prior year period primarily driven by lower bad debt expense ($14.8 million) included in Corporate expense as part of the reconciliation of segment accounting policies to U.S.

Corporate expenses for the first six months of 2022 decreased $20.2 million versus the prior year period primarily driven by lower bad debt expense ($13.9 million) included in Corporate expense as part of the reconciliation of segment accounting policies to U.S.

GAAP (see further discussion of bad debt expense in the next paragraph below).

In addition, there was a decrease in costs related to developing new service offerings ($2.5 million) and higher foreign currency transaction gains in the current year period ($2.3 million).

In addition, there were higher foreign currency transaction gains in the current year period ($5.8 million) and an increase in incentive compensation, including share-based and bonus accruals ($6.8 million).

These increased costs were offset by decreased expenses related to developing new service offerings ($5.9 million).

Prior to the first quarter of 2021, all Brink’s business units followed an internal accounting policy for determining an allowance for doubtful accounts.

1 unchanged sentence

GAAP estimated consolidated allowance, with any differences reported as part of Corporate expense.

In the first three months of 2021, the Corporate reconciling adjustment was an increase of Corporate expense of $13.1 million.

In the first six months of 2021, the Corporate reconciling adjustment was an increase of Corporate expense of $12.7 million.

The 2021 adjustment was primarily from a change in the first quarter of 2021 to the allowance calculation method of the North America segment’s U.S.

8 unchanged sentences

Other Items Not Allocated to Segments

Ended March 31, %

(In millions) 2022 2021 change

Ended June 30, % Six Months

Ended June 30, %

(In millions) 2022 2021 change 2022 2021 change

Operating profit:

1 unchanged sentence

Acquisitions and dispositions (15.4) (20.5) (25) (30.6) (39.2) (22)

Argentina highly inflationary impact (6.1) (3.9) 56

Change in allowance estimate (16.7) — unfav

Argentina highly inflationary impact (9.0) (2.6) unfav (15.1) (6.5) unfav

Change in allowance estimate 0.4 — fav (16.3) — unfav

Chile antitrust matter

(0.8) — unfav (0.8) — unfav

Internal loss — 0.9 (100) — 1.7 (100)

3 unchanged sentences

Management periodically implements restructuring actions in targeted sections of our business.

As a result of these actions, we recognized net costs of $6.6 million in the first three months of 2021, primarily severance costs.

We recognized $11.7 million net costs in the first three months of 2022, primarily severance costs.

As a result of these actions, we recognized net costs of $21.7 million in the first six months of 2021, primarily severance costs.

We recognized $14.4 million net costs in the first six months of 2022, primarily severance costs.

The majority of the costs from 2022 restructuring plans result from the exit of a line of business in a specific geography with most of the remaining costs due to management initiatives to address the COVID-19 pandemic.

4 unchanged sentences

Charges related to the employees, assets, leases and contracts impacted by these restructuring actions were excluded from the segments and corporate expenses as shown in the table below.

Ended March 31, %

(In millions) 2022 2021 change

Three Months Ended June 30, % Six Months

Ended June 30, %

(In millions) 2022 2021 change 2022 2021 change

Reportable Segments:

North America $ (7.4) (0.3) unfav

Latin America (2.9) (1.0) unfav

North America $ (0.1) — unfav $ (7.5) (0.3) unfav

Latin America (2.4) (2.4) — (5.3) (3.4) 56

Europe (0.8) (10.8) (93) (2.2) (15.7) (86)

1 unchanged sentence

Total reportable segments (3.4) (15.1) (77) (15.1) (21.7) (30)

Corporate items — — —

Corporate items 0.7 — fav 0.7 — fav

Total $ (2.7) (15.1) (82) $ (14.4) (21.7) (34)

2 unchanged sentences

2022 Acquisitions and Dispositions

• Amortization expense for acquisition-related intangible assets was $12.6 million in the first three months of 2022.

• We incurred $0.9 million in integration costs, primarily related to PAI and G4S, in the first three months of 2022.

• Transaction costs related to business acquisitions were $0.4 million in the first three months of 2022.

• Restructuring costs related to acquisitions were $0.1 million in the first three months of 2022.

• Compensation expense related to the retention of key PAI employees was $1.0 million in the first three months of 2022.

• Amortization expense for acquisition-related intangible assets was $25.2 million in the first six months of 2022.

• We incurred $2.1 million in integration costs, primarily related to PAI and G4S, in the first six months of 2022.

• Transaction costs related to business acquisitions were $1.0 million in the first six months of 2022.

• Restructuring costs related to acquisitions were $0.1 million in the first six months of 2022.

• Compensation expense related to the retention of key PAI employees was $1.8 million in the first six months of 2022.

2021 Acquisitions and Dispositions

• Amortization expense for acquisition-related intangible assets was $9.9 million in the first three months of 2021.

• We incurred $4.1 million in integration costs, primarily related to G4S, in the first three months of 2021.

• Transaction costs related to business acquisitions were $2.4 million in the first three months of 2021.

• Restructuring costs related to acquisitions were $2.3 million in the first three months of 2021.

• Amortization expense for acquisition-related intangible assets was $22.6 million in the first six months of 2021.

• We incurred $6.9 million in integration costs, primarily related to G4S, in the first six months of 2021.

• Transaction costs related to business acquisitions were $4.3 million in the first six months of 2021.

• Restructuring costs related to acquisitions were $4.6 million in the first six months of 2021.

• Compensation expense related to the retention of key PAI employees was $0.6 million in the first six months of 2021.

Argentina highly inflationary impact Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes.

2 unchanged sentences

The higher historical basis results in incremental expense being recognized when the nonmonetary assets are consumed.

In the first three months of 2022, we recognized $6.1 million in pretax charges related to highly inflationary accounting, including currency remeasurement losses of $4.9 million.

In the first three months of 2021, we recognized $3.9 million in pretax charges related to highly inflationary accounting, including currency remeasurement losses of $3.0 million.

In the first six months of 2022, we recognized $15.1 million in pretax charges related to highly inflationary accounting, including currency remeasurement losses of $13.4 million.

In the first six months of 2021, we recognized $6.5 million in pretax charges related to highly inflationary accounting, including currency remeasurement losses of $5.0 million.

These amounts are excluded from segment and non-GAAP results.

5 unchanged sentences

As part of the analysis under the updated estimation methodology, we noted an increase in accounts receivable significantly past due, particularly in the U.S., and we recorded an additional allowance of $16.7 million.

In the second quarter of 2022, the additional allowance was reduced by $0.4 million as a result of collections.

Due to the fact that management has excluded these amounts when evaluating internal performance, we have excluded this charge from segment and non-GAAP results.

Chile antitrust matter In the first six months of 2022, we recognized an additional $0.8 million adjustment to our estimated loss related to a potential fine as a result of a change in currency rates.

Due to the special nature of this matter, this charge has not been allocated to segment results and is excluded from non-GAAP results.

See Note 14 for details.

Internal loss A former non-management employee in our U.S.

2 unchanged sentences

As a result, we estimated an increase to bad debt expense of $26.7 million through the end of 2020.

In the first three months of 2021, we recognized a decrease in bad debt expense of $1.6 million, primarily related to collection of these receivables.

We also recognized $0.8 million of legal charges in the first three months of 2021 as we attempted to collect additional insurance recoveries related to these receivable losses.

In the first three months of 2022, we did not incur any charges related to the internal loss.

In the first six months of 2021, we recognized a decrease in bad debt expense of $2.7 million, primarily related to collection of these receivables.

We also recognized $0.9 million of legal charges in the first six months of 2021 as we attempted to collect additional insurance recoveries related to these receivable losses.

In the first six months of 2022, we did not incur any charges related to the internal loss.

Due to the unusual nature of this internal loss and the related errors in the subledger data, along with the fact that management has excluded these amounts when evaluating internal performance, we have excluded these net charges from segment and non-GAAP results.

13 unchanged sentences

dollar revenues and operating profit and may continue in 2022.

At March 31, 2022, Argentina's economy remains highly inflationary for accounting purposes.

At March 31, 2022, we had net monetary assets denominated in Argentine pesos of $69.0 million (including cash of $62.7 million) and net nonmonetary assets of $154.0 million (including $99.8 million of goodwill, $7.8 million in equity securities denominated in Argentine pesos and $4.1 million in debt securities denominated in Argentine pesos).

At June 30, 2022, Argentina's economy remains highly inflationary for accounting purposes.

At June 30, 2022, we had net monetary assets denominated in Argentine pesos of $75.8 million (including cash of $68.0 million) and net nonmonetary assets of $152.6 million (including $99.8 million of goodwill, $7.7 million in equity securities denominated in Argentine pesos and $3.7 million in debt securities denominated in Argentine pesos).

During September 2019, the Argentine government announced currency controls on both companies and individuals.

2 unchanged sentences

Conversions under these other market mechanisms generally settle at rates that are less favorable than the rates at which we remeasure the financial statements of Brink’s Argentina.

We did not have any such conversion losses in the three months ended March 31, 2022 or March 31, 2021.

We did not have any such conversion losses in the six months ended June 30, 2022 or June 30, 2021.

Although the Argentine government has implemented currency controls, Brink’s management continues to provide guidance and strategic oversight, including budgeting and forecasting for Brink’s Argentina.

2 unchanged sentences

From time to time, we use short term foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies.

At March 31, 2022, the notional value of our short term outstanding foreign currency forward and swap contracts was $497 million with average contract maturities of approximately one month.

These short term foreign currency forward and swap contracts primarily offset exposures in the euro, the British pound and the Mexican peso.

At June 30, 2022, the notional value of our short term outstanding foreign currency forward and swap contracts was $476 million with average contract maturities of approximately one month.

These short term foreign currency forward and swap contracts primarily offset exposures in the euro, the British pound, the Mexican peso, and the Chilean peso.

Additionally, these short term contracts are not designated as hedges for accounting purposes, and accordingly, changes in their fair value are recorded immediately in earnings.

At March 31, 2022, the fair value of our short term foreign currency contracts was a net asset of approximately $9.8 million, of which $9.9 million was included in prepaid expenses and other and $0.1 million was included in accrued liabilities on the condensed consolidated balance sheet.

At June 30, 2022, the fair value of our short term foreign currency contracts was a net asset of approximately $2.6 million, of which $5.9 million was included in prepaid expenses and other and $3.3 million was included in accrued liabilities on the condensed consolidated balance sheet.

At December 31, 2021, the fair value of these foreign currency contracts was a net asset of approximately $1.9 million, of which $3.4 million was included in prepaid expenses and other and $1.5 million was included in accrued liabilities on the condensed consolidated balance sheet.

Amounts under these contracts were recognized in other operating income (expense) and in interest and other nonoperating income and expense as follows:

Ended March 31,

Ended June 30, Six Months

Ended June 30,

(In millions) 2022 2021 2022 2021

Derivative instrument gains included in other operating income (expense) $ 18.9 10.5

Derivative instrument gains (losses) included in other operating income (expense) $ 14.1 (2.3) $ 33.0 8.2

We also have a long term cross currency swap contract to hedge exposure in Brazilian real, which is designated as a cash flow hedge for accounting purposes.

3 unchanged sentences

dollar denominated intercompany loan and a Brazilian real denominated intercompany loan.

At March 31, 2022, the notional value of this long term contract was $70 million with a weighted-average maturity of approximately 1.1 years.

At March 31, 2022, the fair value of the long term cross currency swap contract was a $15.9 million net asset, of which $3.3 million is included in prepaid expenses and other and $12.6 million is included in other assets on the condensed consolidated balance sheet.

At June 30, 2022, the notional value of this long term contract was $65 million with a weighted-average maturity of approximately 1.0 years.

At June 30, 2022, the fair value of the long term cross currency swap contract was a $18.1 million net asset, of which $5.3 million is included in prepaid expenses and other and $12.8 million is included in other assets on the condensed consolidated balance sheet.

At December 31, 2021, the fair value of the long term cross currency swap contract was a $26.3 million net asset, of which a $5.8 million asset is included in prepaid expenses and other and a $20.5 million asset is included in other assets on the condensed consolidated balance sheet.

Amounts under this contract were recognized in other operating income (expense) to offset transaction gains or losses and in interest expense as follows:

Ended March 31,

Ended June 30, Six Months

Ended June 30,

(In millions) 2022 2021 2022 2021

7 unchanged sentences

We have elected to exclude the spot-forward difference from the assessment of hedge effectiveness and are amortizing this amount separately on a straight-line basis over the term of these cross currency swaps.

At March 31, 2022, the notional value of these cross currency swap contracts was $400 million with a remaining weighted average maturity of 6.1 years.

At March 31, 2022, the fair value of these currency swaps was a net asset of $26.1 million, of which $6.0 million was included in prepaid expenses and other and $20.1 million was included in other assets on the condensed consolidated balance sheet.

At June 30, 2022, the notional value of these cross currency swap contracts was $400 million with a remaining weighted average maturity of 4.7 years.

At June 30, 2022, the fair value of these currency swaps was a net asset of $52.1 million, of which $6.0 million was included in prepaid expenses and other and $46.1 million was included in other assets on the condensed consolidated balance sheet.

In July 2022, we terminated these cross currency swap contracts and received $67 million in cash as settlement.

We subsequently entered into a total of nine cross currency swaps with a total notional of $400 million to hedge a portion of our net investment in certain of our subsidiaries with euro functional currencies.

Swaps with a total notional of $185 million will terminate in April 2031 and swaps with a total notional of $215 million will terminate in May 2026.

We have designated these swaps as net investment hedges for accounting purposes.

The effect of the amortization of the spot-forward difference on the net investment hedges cross currency swaps is included in interest expense as follows:

Ended March 31,

Ended June 30, Six Months

Ended June 30,

(In millions) 2022 2021 2022 2021

3 unchanged sentences

Other operating income (expense) includes amounts included in segment results as well as income and expense not allocated to segments.

Ended March 31, %

(In millions) 2022 2021 change

Ended June 30, % Six Months

Ended June 30, %

(In millions) 2022 2021 change 2022 2021 change

Foreign currency items:

Transaction gains (losses) $ (21.4) (13.3) 61

Derivative instrument gains (losses) 18.9 10.5 80

Gains (losses) on sale of property and other assets 0.4 (1.7) fav

Transaction gains (losses) $ (19.3) — (100) $ (40.7) (13.3) unfav

Derivative instrument gains (losses) 14.1 (2.3) fav 33.0 8.2 fav

Gains (losses) on sale of property and other assets 1.1 0.3 fav 1.5 (1.4) fav

Impairment losses (0.9) (1.4) (36) (3.0) (2.5) 20

Share in earnings of equity affiliates 0.5 0.3 67

Share in earnings of equity affiliates 0.3 0.1 fav 0.8 0.4 100

Royalty income 1.9 1.3 46 5.1 2.5 fav

Other gains (losses) 0.4 1.5 (73) 0.6 2.7 (78)

Other operating income (expense) $ (0.3) (2.9) (90)

Other operating income (expense) was a $0.3 million expense in the first three months of 2022 versus an $2.9 million expense in the prior year period.

The change from the prior year period was primarily due to higher royalty income in the current period.

Other operating income (expense) $ (2.4) (0.5) unfav $ (2.7) (3.4) (21)

Other operating income (expense) was a $2.4 million expense in the second quarter of 2022 versus a $0.5 million expense in the prior year period.

The change from the prior year period was primarily due to lower net losses from foreign currency items in the current period.

Other operating income (expense) was a $2.7 million expense in the first six months of 2022 versus a $3.4 million expense in the prior year period.

The change from the prior year period was primarily due to lower net losses from foreign currency items in the current period.

Nonoperating Income and Expense

Interest expense

Ended March 31, %

Ended June 30, % Six Months

Ended June 30, %

(In millions)

2022 2021 change

2022 2021 change 2022 2021 change

Interest expense $ 32.4 28.2 15 $ 60.3 55.4 9

Interest expense was higher in the first three months of 2022 compared to the prior year period primarily due to higher borrowing levels due to business acquisitions.

Interest expense was higher in the second quarter and first six months of 2022 primarily due to higher borrowing levels related to the $200 million in share repurchases completed over the prior twelve months.

Interest and other nonoperating income (expense)

Ended March 31, %

(In millions) 2022 2021 change

Interest income $ 3.4 2.1 62

Gain (loss) on equity securities (0.3) 3.4 unfav

Ended June 30, % Six Months

Ended June 30, %

(In millions) 2022 2021 change 2022 2021 change

Interest income $ 5.5 2.6 fav $ 8.9 4.7 89

Gain (loss) on equity securities (0.1) 10.8 unfav (0.4) 14.2 unfav

Foreign currency transaction gains (losses) 1.6 — 100 2.3 (0.1) fav

Retirement benefit cost other than service cost (3.2) (8.7) (63) (8.0) (18.3) (56)

Non-income taxes on intercompany billings (a)

G4S indemnification asset adjustment (a)

— 0.5 (100) — 0.5 (100)

Other 0.5 (0.6) fav

Interest and other nonoperating income (expense) $ (1.3) (5.5) (76)

(a) Certain of our Latin American subsidiaries incur non-income taxes related to the billing of intercompany charges.

Penalties and interest on non-income taxes (b)

— (1.7) (100) — (1.7) (100)

Non-income taxes on intercompany billings (c)

0.5 (0.6) fav (1.3) (1.3) —

Earn-out liability adjustment (d)

— 1.3 (100) — 1.3 (100)

Other (0.9) 0.4 unfav 0.6 (0.2) fav

Interest and other nonoperating income (expense) $ 3.4 4.6 (26) $ 2.1 (0.9) fav

(a) Adjustment to indemnification asset related to business operations acquired from G4S.

(b) Represents penalties and interest on non-income taxes that have not yet been paid.

These intercompany charges do not impact the Latin America segment results and are eliminated in our consolidation.

Ended March 31,

(d) Adjustment to the liability for contingent consideration pertaining to a 2019 business acquisition.

Ended June 30, Six Months

Ended June 30,

2022 2021 2022 2021

Continuing operations

12 unchanged sentences

Accordingly, as a result of the law change, we reversed a substantial amount of our valuation allowance on our net U.S.

deferred tax assets, resulting in a $58.3 million benefit in our provision for income taxes.

This benefit was recorded in the first quarter of 2022.

deferred tax assets, resulting in a $55.0 million benefit in our provision for income taxes for the period ended June 30, 2022.

Due to the novel approach that the final regulations impose, it is possible that further developments in foreign country or U.S.

4 unchanged sentences

Noncontrolling Interests

Ended March 31, %

(In millions) 2022 2021 change

Ended June 30, % Six Months

Ended June 30, %

(In millions) 2022 2021 change 2022 2021 change

Net income attributable to noncontrolling interests $ 3.0 3.0 — $ 5.9 5.7 4

The net income attributable to noncontrolling interests in the three months ended March 31, 2022 is consistent with the net income attributable to noncontrolling interests in the three months ended March 31, 2021.

The slight increase in the first quarter of 2022 is attributable to the G4S acquisition that took place in February 2021.

The net income attributable to noncontrolling interests in the three months and six months ended June 30, 2022 is consistent with the net income attributable to noncontrolling interests in the three months and six months ended June 30, 2021.

Non-GAAP Results Reconciled to GAAP

25 unchanged sentences

Valuation allowance on tax credits (e)

Chile antitrust matter (b)

Internal loss (b)

12 unchanged sentences

Settlement charges and curtailment gains related to these non-U.S.

plans are also excluded from non-GAAP results.

plans and costs related to our frozen non-U.S.

retirement plans are also excluded from non-GAAP results.

(e) In the first quarter of 2022, we released a portion of our valuation allowance on certain U.S.

3 unchanged sentences

Non-GAAP Results Reconciled to GAAP

Ended March 31,

Ended June 30, Six Months

Ended June 30,

(In millions, except for percentages and per share amounts) 2022 2021 2022 2021

4 unchanged sentences

Reorganization and restructuring (b)

2.7 15.1 14.4 21.7

Acquisitions and dispositions (b)

15.4 20.5 30.6 39.2

Argentina highly inflationary impact (b)

9.0 2.6 15.1 6.5

Change in allowance estimate (b)

(0.4) — 16.3 —

Chile antitrust matter (b)

Internal loss (b)

— (0.9) — (1.7)

Non-GAAP $ 124.0 110.6 $ 236.1 200.7

5 unchanged sentences

Acquisitions and dispositions (b)

0.3 0.5 0.7 0.8

Non-GAAP $ (32.1) (27.7) $ (59.6) (54.6)

2 unchanged sentences

Retirement plans (d)

1.8 6.7 4.9 13.1

Acquisitions and dispositions (b)

(1.7) (1.2) (2.4) (1.0)

Argentina highly inflationary impact (b)

3 unchanged sentences

Retirement plans (d)

0.7 1.8 1.4 3.7

Reorganization and restructuring (b)

1.1 3.7 2.3 5.3

Acquisitions and dispositions (b)

1.0 1.7 1.8 2.2

Argentina highly inflationary impact (b)

(0.3) (0.3) (0.5) (0.6)

Change in allowance estimate (b)

(0.1) — 3.9 —

Valuation allowance on tax credits (e)

(3.3) — 55.0 —

Chile antitrust matter (b)

Internal loss (b)

— (0.3) — (0.7)

Income tax rate adjustment (c)

2.7 1.9 7.0 6.6

Non-GAAP $ 31.3 31.2 $ 59.3 52.8

1 unchanged sentence

GAAP $ 3.0 3.0 $ 5.9 5.7

Retirement plans (d)

Reorganization and restructuring (b)

Acquisitions and dispositions (b)

0.2 (0.1) 0.5 0.4

Income tax rate adjustment (c)

(0.1) 0.4 (0.5) (0.3)

Non-GAAP $ 3.2 3.7 $ 6.0 6.3

1 unchanged sentence

See page 49 for footnote explanations.

Ended March 31,

Ended June 30, Six Months

Ended June 30,

(In millions, except for percentages and per share amounts) 2022 2021 2022 2021

2 unchanged sentences

Retirement plans (d)

1.0 4.9 3.4 9.4

Reorganization and restructuring (b)

1.6 11.0 12.1 15.9

Acquisitions and dispositions (b)

12.8 18.2 26.6 36.4

Argentina highly inflationary impact (b)

10.2 2.9 17.1 7.1

Change in allowance estimate (b)

(0.3) — 12.4 —

Valuation allowance on tax credits (e)

3.3 — (55.0) —

Chile antitrust matter (b)

Internal loss (b)

— (0.6) — (1.0)

Income tax rate adjustment (c)

(2.6) (2.3) (6.5) (6.3)

Non-GAAP $ 61.8 58.1 $ 117.3 98.2

1 unchanged sentence

Retirement plans (d)

0.02 0.10 0.07 0.19

Reorganization and restructuring (b)

0.03 0.22 0.25 0.32

Acquisitions and dispositions (b)

0.27 0.36 0.55 0.72

Argentina highly inflationary impact (b)

0.21 0.06 0.36 0.14

Change in allowance estimate (b)

(0.01) — 0.26 —

Valuation allowance on tax credits (e)

0.07 — (1.15) —

Chile antitrust matter (b)

0.01 — 0.01 —

Internal loss (b)

— (0.01) — (0.02)

Income tax rate adjustment (c)

4 unchanged sentences

LIQUIDITY AND CAPITAL RESOURCES

Cash flows from operating activities decreased by $74.8 million in the first three months of 2022 as compared to the first three months of 2021.

Cash used for investing activities decreased by $86.5 million in the first three months of 2022 compared to the first three months of 2021.

We financed our liquidity needs in the first three months of 2022 with existing cash and cash flows from long-term debt.

Cash flows from operating activities decreased by $39.9 million in the first six months of 2022 as compared to the first six months of 2021.

Cash used for investing activities decreased by $277.4 million in the first six months of 2022 compared to the first six months of 2021.

We financed our liquidity needs in the first six months of 2022 with existing cash and cash flows from long-term debt.

Operating Activities

Ended March 31, $

Ended June 30, $

(In millions) 2022 2021 change

13 unchanged sentences

This non-GAAP measure should not be considered as an alternative to cash flows from operating activities determined in accordance with GAAP and should be read in conjunction with our condensed consolidated statements of cash flows.

Cash flows from operating activities decreased by $74.8 million in the first three months of 2022 compared to the same period in 2021.

The decrease was attributed to working capital changes, changes in customer obligations related to certain of our secure cash management services operations (certain customer obligations decreased by $0.1 million in 2022 compared to an increase of $18.4 million in 2021, offset by restricted cash held for customers (restricted cash held for customers decreased by $52.5 million in 2022 compared to a decrease of $66.4 million in 2021) and higher amounts paid for income taxes (we had $31.3 million in cash payments for taxes in 2022 as compared to $14.6 million in 2021).

Non-GAAP cash flows from operating activities decreased by $72.8 million in the first three months of 2022 as compared to the same period in 2021.

The decrease was attributed to working capital changes and higher amounts paid for income taxes.

Cash flows from operating activities decreased by $39.9 million in the first six months of 2022 compared to the same period in 2021.

The decrease was attributed to working capital changes, higher amounts paid for income taxes (we had $70.5 million in cash payments for taxes in 2022 as compared to $38.9 million in 2021) and changes in customer obligations related to certain of our secure cash management services operations (certain customer obligations increased by $5.3 million in 2022 compared to an increase of $8.3 million in 2021), offset by restricted cash held for customers (restricted cash held for customers increased by $3.5 million in 2022 compared to a decrease of $36.3 million in 2021) and higher operating profit.

Non-GAAP cash flows from operating activities decreased by $79.3 million in the first six months of 2022 as compared to the same period in 2021.

The decrease was attributed to working capital changes and higher amounts paid for income taxes, offset by higher operating profit.

Investing Activities

Ended March 31, $

Ended June 30, $

(In millions) 2022 2021 change

9 unchanged sentences

Investing activities $ (102.5) (379.9) 277.4

Cash used by investing activities decreased by $86.5 million in the first three months of 2022 versus the first three months of 2021.

The decrease was primarily due to decreased payments related to the G4S acquisition in 2021.

Cash used by investing activities decreased by $277.4 million in the first six months of 2022 versus the first six months of 2021.

The decrease was primarily due to decreased payments related to the G4S and PAI acquisitions in 2021.

Capital expenditures and depreciation and amortization were as follows:

Ended March 31, $ Full Year

Ended June 30, $ Full Year

(In millions) 2022 2021 change 2021

39 unchanged sentences

These non-GAAP measures should not be considered as alternatives to capital expenditures and depreciation and amortization determined in accordance with GAAP and should be read in conjunction with our condensed consolidated statements of cash flows.

Our reinvestment ratio, which we define as the annual amount of property and equipment acquired during the period divided by the annual amount of depreciation, was 1.4 for the 12 months ending March 31, 2022 compared to 0.8 for the 12 months ending March 31, 2021.

Capital expenditures in the first three months of 2022 were primarily for information technology, cash devices, armored vehicles and machinery and equipment.

Our reinvestment ratio, which we define as the annual amount of property and equipment acquired during the period divided by the annual amount of depreciation, was 1.4 for the 12 months ending June 30, 2022 compared to 1.1 for the 12 months ending June 30, 2021.

Capital expenditures in the first six months of 2022 were primarily for information technology, cash devices, armored vehicles and machinery and equipment.

Financing Activities

Ended March 31, $

Ended June 30, $

(In millions) 2022 2021 change

5 unchanged sentences

Borrowings (repayments) 174.9 331.5 (156.6)

Debt financing costs (5.5) (0.3) (5.2)

Dividends to:

9 unchanged sentences

Debt borrowings and repayments

Cash flows from financing activities in the first three months of 2022 was consistent with the first three months of 2021.

We paid dividends to Brink’s shareholders of $0.20 per share or $9.5 million in the first three months of 2022 compared to $0.15 per share or $7.4 million in the first three months of 2021.

Cash flows from financing activities decreased by $177.9 million in the first six months of 2022 compared to the first six months of 2021 as net borrowings decreased compared to the prior six month period.

We paid dividends to Brink’s shareholders of $0.40 per share or $18.9 million in the first six months of 2022 compared to $0.35 per share or $17.4 million in the first six months of 2021.

Future dividends are dependent on our earnings, financial condition, shareholders’ equity levels, our cash flow and business requirements, as determined by the Board of Directors.

1 unchanged sentence

GAAP Measures

March 31, December 31,

June 30, December 31,

(In millions) 2022 2021

9 unchanged sentences

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.

(b) Included within Net Debt is net cash from our Argentina operations of $63 million at March 31, 2022 and $54 million at December 31, 2021 (see Note 1 to the condensed consolidated financial statements for a discussion of currency controls in Argentina).

(b) Included within Net Debt is net cash from our Argentina operations of $68 million at June 30, 2022 and $54 million at December 31, 2021 (see Note 1 to the condensed consolidated financial statements for a discussion of currency controls in Argentina).

Net Debt is a supplemental non-GAAP financial measure that is not required by or presented in accordance with GAAP.

2 unchanged sentences

Net Debt should not be considered as an alternative to Debt determined in accordance with GAAP and should be reviewed in conjunction with our condensed consolidated balance sheets.

Set forth above is a reconciliation of Net Debt, a non-GAAP financial measure, to Debt, which is the most directly comparable financial measure calculated and reported in accordance with GAAP, as of March 31, 2022, and December 31, 2021.

Net Debt increased by $165 million primarily to fund corporate purposes and other working capital needs.

2 unchanged sentences

Our liquidity needs are typically financed by cash from operations, short-term debt and the available borrowing capacity under our Revolving Credit Facility (our debt facilities are described in more detail in Note 9 to the condensed consolidated financial statements, including certain limitations and considerations related to the cash and borrowing capacity).

As of March 31, 2022, $380 million was available under the Revolving Credit Facility.

As of June 30, 2022, $510 million was available under the Revolving Credit Facility.

Based on our current cash on hand, cash generated from operations, and amounts available under our credit facilities, we believe that we will be able to meet our liquidity needs for the next 12 months.

17 unchanged sentences

Share repurchases under this program may be made in the open market, in privately negotiated transactions, or otherwise.

At March 31, 2022, $250 million remained available under the 2021 Repurchase Program.

At June 30, 2022, $250 million remained available under the 2021 Repurchase Program.

Under the 2020 Repurchase Program, we entered into an accelerated share repurchase arrangement ("ASR") in the fourth quarter of 2021 and repurchased 1,742,160 shares in November 2021 in exchange for a $150 million upfront payment to a financial institution.

19 unchanged sentences

Actual Actual Projected

(In millions) 2021 1Q 2022 2-4Q 2022 2023 2024 2025 2026

(In millions) 2021 First Half 2022 2nd Half 2022 2023 2024 2025 2026

Beginning funded status $ (151.1) (65.8) (52.7) (42.6) (18.2) 8.8 38.6

20 unchanged sentences

We did not make cash contributions to the primary U.S.

pension plan in 2021 or the first three months of 2022.

pension plan in 2021 or the first six months of 2022.

There are approximately 10,800 beneficiaries in the plan.

10 unchanged sentences

Actual Actual Projected

(In millions) 2021 1Q 2022 2-4Q 2022 FY2022 2023 2024 2025 2026

(In millions) 2021 First Half 2022 2nd Half 2022 FY2022 2023 2024 2025 2026

pension plan $ 7.4 (1.1) (0.8) (1.9) (6.5) (13.8) (18.1) (21.1)

5 unchanged sentences

Plans to Participants through 2026

This table summarizes actual and projected payments:

• from Brink’s to U.S.

retirement plans, and

• from the plans to participants.

This table summarizes actual and projected payments from Brink’s to U.S.

retirement plans and from the plans to participants.

Actual Actual Projected

(In millions) 2021 1Q 2022 2-4Q 2022 FY2022 2023 2024 2025 2026

(In millions) 2021 First Half 2022 2nd Half 2022 FY2022 2023 2024 2025 2026

Payments from Brink’s to U.S.

8 unchanged sentences

Contingent Matters

See Note 14 to the condensed consolidated financial statements for information about contingent matters at March 31, 2022.

See Note 14 to the condensed consolidated financial statements for information about contingent matters at June 30, 2022.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis