What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2023-03-01 compared with 2022-02-28 · 408 added, 486 removed, 2002 unchanged (31% of the section changed)

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AND FOR EACH OF THE YEARS IN THE THREE-YEAR PERIOD ENDED DECEMBER 31, 2022

M ANAGEMENT 'S ANNUAL REPORT ON INTERNAL CONTROL OVER FI NANCIAL REPORTIN G

REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM S

Report of Independent Registered Public Accounting Firm - (PCAOB ID 185 )

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Report of Independent Registered Public Accounting Firm - (PCAOB ID 185 )

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Note 24 – Reorganization and Restructuring

Note 25 – Subsequent Events

MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934.

Our internal control over financial reporting is designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2021.

In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in “Internal Control – Integrated Framework (2013).”

Management excluded from its assessment of the effectiveness of internal control over financial reporting, the Kuwait operations acquired from G4S in February 2021 and the PAI operations acquired in April 2021.

The financial statements of these operations constitute 7% of total assets and 3% of revenue of the consolidated financial statement amounts as of and for the year ended December 31, 2021.

Based on this assessment, our management believes that, as of December 31, 2021, our internal control over financial reporting is effective based on the COSO criteria.

KPMG LLP, the independent registered public accounting firm which audits our consolidated financial statements, has issued an attestation report on our internal control over financial reporting.

KPMG’s attestation report appears on page 63.

Report of Independent Registered Public Accounting Firm

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The Brink's Company:

Opinion on Internal Control Over Financial Reporting

We have audited The Brink's Company and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the years in the two-year period ended December 31, 2021, and the related notes (collectively, the consolidated financial statements), and our report dated February 25, 2022 expressed an unqualified opinion on those consolidated financial statements.

The Company acquired Kuwait operations from G4S plc (G4S) in February 2021 and PAI Midco, Inc.

(PAI) in April 2021, and management excluded from its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2021, Kuwait operations from G4S and PAI’s internal control over financial reporting associated with total assets of 7 percent and total revenues of 3 percent included in the consolidated financial statements of the Company as of and for the year ended December 31, 2021.

Our audit of internal control over financial reporting of the Company also excluded an evaluation of the internal control over financial reporting of Kuwait operations from G4S and PAI.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control over Financial Reporting.

Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

Our audit also included performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;

and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Richmond, Virginia

February 25, 2022

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

The Brink's Company:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of The Brink's Company and subsidiaries (the Company) as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the years in the two-year period ended December 31, 2021, and the related notes (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2021, in conformity with U.S.

We have audited the accompanying consolidated balance sheets of The Brink's Company and subsidiaries (the Company) as of December 31, 2022 and 2021, the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the years in the three-year period ended December 31, 2022, and the related notes (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2022, in conformity with U.S.

generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 25, 2022 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated March 1, 2023 expressed an adverse opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

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We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Valuation of goodwill for the Europe reporting unit

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• developing an estimate of the Europe reporting unit’s fair value using the Company’s cash flow forecast and an independently developed discount rate, and comparing the results of our estimate to the Company’s estimate.

Fair value of acquired customer relationship intangible asset

As discussed in Note 7 to the consolidated financial statements, the Company accounts for business combinations under the acquisition method of accounting by recording assets acquired and liabilities assumed at fair value.

On April 1, 2021, the Company acquired PAI, Midco Inc.

(PAI) for $215.5 million and the Company recorded an intangible asset representing the generation of future income from PAI’s existing customers.

The preliminary fair value for the customer relationship intangible asset was $60 million.

We identified the evaluation of the fair value of a customer relationship intangible asset acquired in the PAI transaction as a critical audit matter due to the high degree of subjectivity in evaluating certain inputs in the discounted cash flow model used to determine the fair value of the asset.

The key assumptions used within the valuation model included expected future revenue growth, forecasted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, customer attrition rate, and the discount rate applied.

Changes in these assumptions could have a meaningful impact on the fair value of the customer relationship intangible asset.

The following are the primary procedures we performed to address the critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s acquisition-date valuation process, including controls related to the:

• development of the expected future revenue growth

• determination of the forecasted EBITDA margin

• determination of the customer attrition rate, and

• selection of the discount rate.

We evaluated the expected future revenue growth and forecasted EBITDA margin by comparing these amounts to the historical revenue growth and EBITDA margin of the acquired entity, and to the forecasted revenue growth of peer companies.

We evaluated the customer attrition rate against the Company’s historical customer attrition rate.

We involved valuation professionals with specialized skills and knowledge who assisted in:

• performing sensitivity analyses over future revenue growth, forecasted EBITDA margin, attrition rate, and discount rate to assess the impact of changes in those assumptions on the Company’s determination of the fair value estimate of the customer relationship intangible asset

• evaluating the Company’s discount rate by comparing it against a discount rate that was independently developed using publicly available market data for comparable entities

• developing a fair value estimate of the customer relationship intangible asset using the Company’s cash flow projections and independently developed discount rate and comparing it to the Company’s estimate.

We have served as the Company’s auditor since 2020.

Richmond, Virginia

February 25, 2022

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of The Brink’s Company

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of operations, comprehensive income (loss), equity, and cash flows, of The Brink’s Company and subsidiaries (the "Company") for the year ended December 31, 2019, and the related notes (collectively referred to as the "financial statements").

In our opinion, the 2019 financial statements present fairly, in all material respects, the results of the Company’s operations and its cash flows for the year ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America..

Basis for Opinion

These financial statements are the responsibility of the Company's management.

Our responsibility is to express an opinion on the Company's financial statements based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

Richmond, Virginia

February 28, 2020 (March 1, 2021 as to Note 2, 3, and 8)

We began serving as the Company’s auditor in 2017.

In 2020 we became the predecessor auditor.

March 1, 2023

THE BRINK’S COMPANY

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Unrealized losses on available-for-sale securities ( 0.6 ) ( 0.1 )

Losses on cash flow hedges ( 8.1 ) ( 22.0 )

Gains (losses) on cash flow hedges 24.6 ( 8.1 )

Accumulated other comprehensive loss ( 700.5 ) ( 907.9 )

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Net income — — — 16.0 — 5.9 21.9

Other comprehensive income — — — — 3.1 0.8 3.9

Other comprehensive income (loss) — — — — ( 21.0 ) 4.8 ( 16.2 )

Shares repurchased ( 1.1 ) ( 1.1 ) ( 14.9 ) ( 34.0 ) — — ( 50.0 )

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Other share-based benefit transactions 0.5 0.5 ( 7.9 ) ( 0.1 ) — — ( 7.5 )

Capital contributions from noncontrolling interest — — — — — 0.2 0.2

Acquisitions with noncontrolling interests — — — — — 64.0 64.0

Balance as of December 31, 2020 49.5 49.5 671.8 407.5 ( 1,000.0 ) 73.7 202.5

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Compensation expense — — 33.1 — — — 33.1

Consideration from exercise of stock options — — 2.3 — — — 2.3

Other share-based benefit transactions 0.3 0.3 ( 2.0 ) ( 0.1 ) — — ( 1.8 )

Acquisitions with noncontrolling interests — — — — — 51.4 51.4

Capital contributions from noncontrolling interest — — — — — 0.1 0.1

Balance as of December 31, 2021 47.4 47.4 670.6 312.9 ( 907.9 ) 129.6 252.6

Cumulative effect of change in accounting principle (c)

— — — 0.5 — — 0.5

Net income — — — 170.6 — 11.3 181.9

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Compensation expense — — 48.6 — — — 48.6

Consideration from exercise of stock options — — 2.3 — — — 2.3

Other share-based benefit transactions 0.4 0.4 ( 9.7 ) ( 0.1 ) — ( 9.4 )

Acquisitions of noncontrolling interests (c)

— — ( 3.3 ) — 0.1 ( 4.6 ) ( 7.8 )

Acquisitions with noncontrolling interests — — — — — 0.1 0.1

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Balance as of December 31, 2022 46.3 $ 46.3 684.1 417.2 ( 700.5 ) 123.1 570.2

(a) Effective January 1, 2019, we adopted the provisions of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

We recognized a cumulative effect adjustment to January 1, 2019 retained earnings as a result of adopting this standard.

See Note 1 for further details.

(b) Effective January 1, 2020, we adopted the provisions of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326):

(a) Effective January 1, 2020, we adopted the provisions of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments .

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See Note 1 for further details.

(b) Effective January 1, 2021, we adopted the provisions of ASU 2019-12, Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes .

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See Note 1 for further details.

(c) This amount represents the impact of transactions in which we acquired or disposed of noncontrolling ownership interests in certain companies where we had an existing controlling interest prior to and after the related acquisition or disposal transactions.

* Accumulated other comprehensive income (loss)

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Deferred income taxes ( 62.3 ) 14.6 ( 28.2 )

Gains on sale of property, equipment and marketable securities ( 17.7 ) ( 11.6 ) ( 2.9 )

(Gain) loss on sale of property, equipment and marketable securities 0.7 ( 17.7 ) ( 11.6 )

Gain on business dispositions — — ( 4.1 )

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Cash proceeds from sale of property, equipment and investments 5.7 7.7 5.3

Redemption of cash-surrender value of life insurance policies — — 7.8

Cash proceeds from settlement of cross currency swap 64.3 — —

Net change in loans held for investment ( 25.9 ) — —

Other ( 0.2 ) ( 0.8 ) ( 9.0 )

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Repayments ( 87.0 ) ( 140.7 ) ( 98.5 )

Settlement of acquisition-related contingencies 6.2 9.7 —

Payment of acquisition-related obligation ( 4.0 ) ( 7.3 ) ( 20.3 )

Acquisition of noncontrolling interests ( 7.8 ) — —

Cash received from acquisition related settlements — 6.2 9.7

Cash paid for acquisition related settlements and obligations ( 2.8 ) ( 4.0 ) ( 7.3 )

Debt financing costs ( 5.6 ) ( 0.8 ) ( 13.2 )

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Tax withholdings associated with share-based compensation ( 12.2 ) ( 5.5 ) ( 10.3 )

Cross currency swap contract 4.0 3.1 ( 3.9 )

Net cash provided (used) by financing activities 171.3 683.7 ( 38.0 )

Other 3.9 4.0 3.1

Net cash provided by financing activities 245.2 171.3 683.7

Effect of exchange rate changes on cash and cash equivalents ( 70.1 ) ( 50.8 ) 37.9

Cash, cash equivalents and restricted cash:

Increase (decrease) 143.8 473.9 ( 10.5 )

Increase 323.8 143.8 473.9

Balance at beginning of period 1,086.7 942.9 469.0

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Basis of Presentation

The Brink’s Company (along with its subsidiaries, “we,” “our,” “Brink’s” or the “Company”), based in Richmond, Virginia, is a leading provider of secure transportation, cash management services and other security-related services to banks and financial institutions, retailers, government agencies, mints, jewelers and other commercial operations around the world.

The Brink’s Company (along with its subsidiaries, “we,” “our,” “Brink’s” or the “Company”), based in Richmond, Virginia, is a leading provider of cash and valuables management, digital retail solutions, and ATM managed services to financial institutions, retailers, government agencies, mints, jewelers and other commercial operations around the world.

Brink’s is the oldest and largest secure transportation and cash management services company in the U.S., and a market leader in many other countries.

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Revenue Recognition

Revenue is recognized when services related to armored vehicle transportation, ATM services, cash management services, payment services, guarding and the secure international transportation of valuables are performed.

Revenue is recognized when services related to cash and valuables management, digital retail solutions, and ATM managed services are performed.

We assess our customers' ability to meet contractual terms, including payment terms, before entering into contracts.

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For operating leases, right-of-use assets (and related lease liabilities) are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term.

See "New Accounting Standards" sections below as well as Note 17 for further information.

See Note 17 for further information.

Property and Equipment

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Long-lived assets other than goodwill and other indefinite-lived intangibles are reviewed for impairment when events or changes in circumstances indicate the carrying value of an asset may not be recoverable.

For long-lived assets other than goodwill that are to be held and used in operations, an impairment is indicated when the estimated total undiscounted cash flow associated with the asset or group of assets is

less than carrying value.

If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value.

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For nonmonetary equity securities traded in highly inflationary economies, the fair market value of the equity securities are remeasured at the current exchange rates to determine gain or loss to be recorded in net income.

For nonmonetary available for sale debt securities traded in highly inflationary economies, the fair market value of these debt securities are remeasured at the current exchange rates, with changes recorded in the gains (losses) on marketable securities component of accumulated other comprehensive income (loss).

For nonmonetary available for sale debt securities traded in highly inflationary economies, the fair market value of these debt securities are remeasured at the current exchange rates, with changes recorded in the gains (losses) on available-for-sale securities component of accumulated other comprehensive income (loss).

We reclassify amounts from accumulated other comprehensive income (loss) into earnings when these debt securities are sold.

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As a result, we consolidated Brink's Argentina using our accounting policy for subsidiaries operating in highly inflationary economies beginning with the third quarter of 2018.

Argentine peso-denominated monetary assets and liabilities are now remeasured at each balance sheet date using the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings.

Argentine peso-denominated monetary assets and liabilities are now remeasured at each balance sheet date using the currency

exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings.

In 2022, we recognized $ 37.6 million in pretax remeasurement loss.

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

At December 31, 2022, we had net monetary assets denominated in Argentine pesos of $ 66.2 million (including cash of $ 57.7 million).

At December 31, 2022, we had net nonmonetary assets of $ 168.2 million (including $ 99.8 million of goodwill, $ 1.9 million in equity securities denominated in Argentine pesos and $ 27.4 million in debt securities denominated in Argentine pesos).

At December 31, 2021, we had net monetary assets denominated in Argentine pesos of $ 60.1 million (including cash of $ 52.9 million) and net nonmonetary assets of $ 155.3 million (including $ 99.8 million of goodwill, $ 8.2 million in equity securities denominated in Argentine pesos and $ 4.3 million in debt securities denominated in Argentine pesos).

At December 31, 2020, we had net monetary assets denominated in Argentine pesos of $ 31.3 million (including cash of $ 24.4 million) and net nonmonetary assets of $ 146.2 million (including $ 99.8 million of goodwill).

At December 31, 2020, we had minimal equity securities denominated in Argentine pesos.

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

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Under these procedures, central bank approval is required for many transactions, including dividend repatriation abroad.

During the third quarter of 2020 and during the fourth quarter of 2019, we elected to use other market mechanisms to convert Argentine pesos into U.S.

During the third quarter of 2020, we elected to use other market mechanisms to convert Argentine pesos into U.S.

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.

As a result, we recognized $ 10.4 million in 2020 and $ 4.7 million in 2019 of such conversion losses when we converted Argentine pesos into U.S.

dollars at rates that were approximately 100 % and 25 % less favorable than the rates at which we remeasured the financial statements of Brink’s Argentina.

As a result, we recognized $ 10.4 million in 2020 of such conversion losses when we converted Argentine pesos into U.S.

dollars at rates that were approximately 100 % less favorable than the rates at which we remeasured the financial statements of Brink’s Argentina.

These conversion losses are classified in the consolidated statements of operations as other operating income (expense).

We did not have any such conversion losses in 2021.

We did not have any such conversion losses in 2021 or 2022.

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.

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In 2020, we incurred $ 0.3 million in costs (primarily third party expenses) to reconstruct the accounts receivables subledger.

In 2020, we incurred an additional $ 0.3 million in costs related to this activity.

In the third quarter of 2019, we were able to identify $ 4.0 million of revenues billed and collected in prior periods which had never been recorded in the general ledger.

We also identified and recorded $ 0.3 million in bank fees, which had been incurred in prior periods.

The rebuild of the subledger was completed during the third quarter of 2019.

Based on the reconstructed subledger, we were able to analyze and quantify the uncollected receivables from prior periods.

Although we planned to attempt to collect these receivables, we estimated an increase to bad debt expense of $ 13.7 million in the third quarter of 2019.

The estimate of the allowance for doubtful accounts was adjusted in the fourth quarter of 2019 for an additional $ 6.4 million and again in 2020 for an additional $ 6.6 million.

As a result, we estimated an increase to bad debt expense of $ 6.6 million in 2020.

In 2021, we recognized a decrease in bad debt expense of $ 3.7 million, primarily related to collection of these receivables.

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In the fourth quarter of 2021, we successfully collected $ 18.8 million of insurance recoveries related to these internal losses.

In 2022, we did not incur any charges related to the internal loss.

We defined accounts receivable impacted by the embezzlement as accounts receivable recorded as of and prior to the third quarter of 2019.

In the fourth quarter of 2021, we wrote off the remaining accounts receivable of $ 8.1 million which had previously been fully reserved.

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 amounts from segment results.

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We routinely assess the financial strength of significant customers and this assessment, combined with the large number and geographic diversity of our customers, limits our concentration of risk with respect to accounts receivable.

Financial instruments which potentially

subject us to concentrations of credit risks are principally cash and cash equivalents and accounts receivables.

Financial instruments which potentially subject us to concentrations of credit risks are principally cash and cash equivalents and accounts receivables.

Cash and cash equivalents are held by major financial institutions.

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The most significant estimates are related to goodwill, intangibles and other long-lived assets, pension and other retirement benefit assets and obligations, legal contingencies, allowance for doubtful accounts, deferred tax assets and purchase price allocations.

In the first quarter of 2022, we further refined our global methodology of estimating the allowance for doubtful accounts.

Our previous method to estimate currently expected credit losses in receivables (the allowance) was weighted significantly to a review of historical loss rates and specific identification of higher risk customer accounts.

It also considered current and expected economic conditions, particularly the effects of the coronavirus (COVID-19) pandemic, in determining an appropriate allowance.

As many of our regions begin to recover from the pandemic, we have re-assessed those earlier assumptions and estimates.

Our updated method now also includes an estimated allowance for accounts receivable significantly past due in order to adjust for at-risk receivables not captured in our previous method.

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 first quarter of 2022.

In the subsequent three quarters of 2022, the additional allowance was reduced by $ 1.1 million as a result of collections.

Due to the fact that management has excluded this amount when evaluating internal performance, we have excluded it from segment results.

Fair-value estimates.

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The adoption of the standard also resulted in expanded disclosures related to credit losses (see Note 16).

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Reform Act.

We adopted ASU 2018-02 effective January 1, 2019 and elected to recognize a cumulative-effect adjustment increasing retained earnings by $ 28.8 million related to the change in the U.S.

federal corporate tax rate.

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , which changes the fair value measurement disclosure requirements.

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Performance Obligations

We provide various services to meet the needs of our customers and we group these service offerings into three broad categories:

Core Services, High-Value Services and Other Security Services.

Core Services

CIT and basic ATM services are core services we provide to customers throughout the world.

We charge customers per service performed or based on the value of goods transported.

CIT services generally involve the secure transportation of cash, securities and other valuables between businesses, financial institutions and central banks.

Basic ATM services are generally composed of management services, including cash replenishment and forecasting, remote monitoring, transaction processing, installation and maintenance.

High-Value Services

Our high-value services leverage our brand, global infrastructure and core services and include cash management services, global services, ATM managed services and payment services.

We offer a variety of cash management services such as currency and coin counting and sorting, deposit preparation and reconciliation, and safe device installation and servicing (including our CompuSafe ® service).

Our global services business provides secure ground, sea and air transportation and storage of highly-valued commodities including diamonds, jewelry, precious metals and other valuables.

We provide ATM managed services in North America and Europe for customers using Brink's-owned machines as well as machines owned by third parties.

We also provide payment services which include bill payment and processing services on behalf of utility companies and other billers plus general purpose reloadable prepaid cards and payroll cards.

Other Security Services

Our other security services feature the protection of airports, offices, warehouses, stores and public venues in Europe, Rest of World and Latin America.

We provide various services to meet the needs of our customers and we group these service offerings into two broad categories:

Cash and Valuables Management;

and Digital Retail Solutions and ATM Managed Services.

Cash and Valuables Management

Cash and valuables management services are provided to customers throughout the world.

Cash-in-transit services include the secure transportation of cash, securities and other valuables between businesses, financial institutions and central banks.

Basic ATM management services include cash replenishment, treasury management and first and second line maintenance.

Our global services business provides secure transport of high-value commodities including diamonds, jewelry, precious metals, securities, banknotes, currency, high-tech devices, electronics and pharmaceuticals.

Additional global services include pick-up, packaging, customs clearance, secure vault storage and inventory management.

We also offer a variety of cash management services including money processing (e.g., counting, sorting, wrapping, checking condition of bills, etc.), check imaging and other cash management services (e.g., cashier balancing, counterfeit detection, account consolidation and electronic reporting).

Our vaulting services combine cash-in-transit services, cash management services, vaulting and electronic reporting technologies to help banks expand into new markets while minimizing investment in vaults and branch facilities.

In addition to providing secure storage, we process deposits, provide check imaging and reconciliation services, perform currency inventory management, process ATM replenishment orders and electronically transmit banking transactions.

Digital Retail Solutions (“DRS”), and ATM Managed Services (“AMS”)

DRS and AMS are technology enabled services provided to customers throughout the world.

DRS includes services that leverage Brink’s tech-enabled sales and software platforms to simplify cash acceptance, enables merchants to access their cash without visiting a bank and provide customers with enhanced analytics and visibility.

DRS includes our patented Brink’s Complete TM and CompuSafe® services.

AMS provides comprehensive services beyond basic ATM services including cash forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, and installation services.

These services allow financial institutions, retailers and independent ATM owners to outsource day-to-day operation of ATMs.

For certain customers, we take ownership of ATM devices as part of our managed services offering.

For performance obligations related to the services described above, we generally satisfy our obligations as each action to provide the service to the customer occurs.

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Revenue Disaggregated by Reportable Segment and Type of Service

(In millions) Core Services High-Value Services Other Security Services Total

(In millions) Cash and Valuables Management DRS and AMS Total

Twelve months ended December 31, 2022

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Total reportable segments 3,332.0 358.9 3,690.9

Not Allocated to Segments:

Acquisitions and dispositions — ( 0.5 ) — ( 0.5 )

Internal loss (a)

Total $ 1,953.3 1,584.4 145.5 3,683.2

(a) See details regarding the Internal loss and the impact on revenues in Note 1.

The majority of our revenues from contracts with customers are earned by providing services and these performance obligations are satisfied over time.

Smaller amounts of revenues are earned from selling goods, such as safes, to customers where the performance obligations are satisfied at a point in time.

Certain of our high-value services involve the leasing of assets, such as safes, to our customers along with the regular servicing of those safe devices.

Certain of our services involve the leasing of assets, such as safes, to our customers along with the regular servicing of those safe devices.

Revenues related to the leasing of these assets are recognized in accordance with applicable lease guidance, but are included in the above table as the amounts are a small percentage of overall revenues.

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This revenue consists of services provided to customers who had prepaid for those services prior to the current year.

Revenue recognized in 2021 from performance obligations satisfied in the prior year was not significant.

Revenue recognized in the twelve months ended December 31, 2022 from performance obligations satisfied in the prior year was not

This revenue is a result of changes in the transaction price of our contracts with customers.

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We have excluded from our segment results the impact of highly inflationary accounting in Argentina, including currency remeasurement losses.

Incremental costs (primarily third party expenses) incurred related to the mitigation of material weaknesses and the implementation and adoption of ASU 2016-02, the lease accounting standard which was effective for us as of January 1, 2019, are excluded from segment results.

We have also excluded from our segment results amounts related to an internal loss in our U.S.

Net charges related to a change in the methodology for estimating the allowance for doubtful accounts have been excluded from segment results.

We have also excluded from our segment results net charges related to an internal loss in our U.S.

global services operations.

The net impact of the internal loss includes costs incurred to reconstruct an accounts receivable subledger, estimated bad debt expense as well as legal costs to recover losses from insurance.

The charges related to the internal losses have been partially offset by revenue billed and collected, collections of previously reserved receivables and insurance recoveries.

Finally, we have also excluded from our segment results estimated charges related to an antitrust legal matter in our Brink's Chile operations.

The net impact of the internal loss has included estimated bad debt expense for uncollectible receivables as well as legal costs to recover losses from insurance.

The charges related to the internal loss have been offset by collections of previously reserved receivables and insurance recoveries.

We have also excluded from our segment results estimated charges related to an antitrust legal matter in our Brink's Chile operations.

Finally, we have also excluded an estimate of our share of costs for damages and losses suffered by a ship owner that was carrying cargo for Brink's.

We currently serve customers in more than 100 countries, including 53 countries where we operate subsidiaries.

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Differences between U.S.

GAAP and existing internal policy were not significant for all other business units within the operating segments, and so no other changes were made, and reconciling amounts to U.S.

GAAP for those units will continue to be reported as part of Corporate expense.

For the North America segment, the impact of this change in reporting was to reduce the segment allowance and to increase segment operating profit by $ 12.3 million in 2021.

GAAP and existing internal policy were not significant for all other business units within the operating segments, and so no other changes were made, and reconciling amounts for those units will continue to be reported as part of Corporate expense.

For the North America segment, the impact of this change in reporting was to reduce the segment allowance and to increase segment operating profit by $ 12.3 million in the first quarter of 2021.

There was no net impact to consolidated results, as a corresponding offsetting adjustment occurred on Corporate expenses.

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Reconciling Items:

Corporate items:

Corporate expenses:

General, administrative and other expenses — — — ( 161.5 ) ( 141.7 ) ( 116.3 )

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— — — ( 41.7 ) ( 11.9 ) ( 10.7 )

Chile antitrust matter (e)

Change in allowance estimate (e)

— — — ( 15.6 ) — —

Internal loss (f)

Ship loss matter (f)

— — — ( 4.9 ) — —

Reporting compliance (g)

Chile antitrust matter (g)

— — — ( 1.4 ) ( 9.5 ) —

Internal loss (h)

— — — — 21.1 ( 6.9 )

Reporting compliance (i)

— — — — — ( 0.5 )

Total $ 4,535.5 4,200.2 3,690.9 $ 361.3 354.7 213.5

(a) Represents adjustments to bad debt expense reported within the segments to bad debt expense required on a consolidated basis under U.S.

(b) Management periodically implements restructuring actions targeted sections of our business.

(a) This line item includes adjustments to bad debt expense and a Mexico profit sharing plan accrual reported by the segments to the estimated consolidated amounts required by U.S.

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

In 2022, management began a restructuring plan across our global business operations to enable growth, reduce costs and related infrastructure, and to mitigate the potential impact of external economic conditions.

Due to the unique circumstances around the charges related to these actions, they have not been allocated to segment results.

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These items include amortization expense for acquisition-related intangible assets and integration, transaction and restructuring costs related to business acquisitions.

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

(d) We have designated Argentina's economy as highly inflationary for accounting purposes.

Currency remeasurement gains and losses related to peso-denominated monetary assets and liabilities as well as incremental expense related to nonmonetary assets are excluded from segment results.

(e) See details regarding the Chile antitrust matter at Note 23.

(f) See details regarding the impact of the Internal loss at Note 1.

(g) Costs (primarily third party expenses) related to lease accounting standard implementation and material weakness remediation.

(e) Represents impact of a change in our methodology to estimate our allowance for doubtful accounts in the first quarter of 2022.

See Note 1 and Note 16 for further details.

(f) We have excluded an estimate of our share of costs for damages and losses suffered by a ship owner that was carrying cargo for Brink's.

(g) See details regarding the Chile antitrust matter at Note 23.

(h) See details regarding the impact of the Internal loss at Note 1.

(i) Costs (primarily third party expenses) related to lease accounting standard implementation.

Additional information provided at page 28.

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Brazil 72.5 61.8

United Kingdom 46.0 3.7

Canada 32.9 42.0

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Net assets outside the U.S.

France $ 195.6 155.2

Netherlands 136.8 156.0

Mexico 131.6 154.0

Argentina $ 234.5 216.4

Brazil 231.7 218.1

Mexico 206.1 131.6

France 196.7 195.6

Netherlands 151.8 136.8

Other non-U.S.

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plan to pay benefits for those eligible current and former employees in the U.S.

whose benefits exceed the regulatory limits.

Pension benefits provided to eligible U.S.

whose benefits exceed the regulatory limits Pension benefits provided to eligible U.S.

employees were frozen on December 31, 2005.

Components of Net Periodic Pension Cost

Components of Net Periodic Pension Cost (Credit)

(In millions) U.S.

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Amortization of losses 24.2 34.0 28.6 2.0 6.6 5.1 26.2 40.6 33.7

Amortization of prior service cost — — — — — 0.1 — — 0.1

Curtailment gain — — — ( 0.5 ) ( 0.8 ) ( 1.5 ) ( 0.5 ) ( 0.8 ) ( 1.5 )

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— — — 3.2 3.3 2.4 3.2 3.3 2.4

Net periodic pension cost $ 7.7 9.1 22.3 $ 17.9 15.2 16.4 $ 25.6 24.3 38.7

(a) Settlement losses recognized in the U.S.

in 2019 are related to an annuity contract buy-out of approximately 2,600 participants.

See "2019 Annuity Contract Buy-out" below.

Settlement losses outside the U.S.

in 2021 relate primarily to lump-sum payouts in Canada as well as terminated employees that participate in a Mexican severance indemnity program that is accounted for as a defined benefit plan.

Net periodic pension cost (credit) $ ( 1.6 ) 7.7 9.1 $ 13.2 17.9 15.2 $ 11.6 25.6 24.3

(a) Settlement losses outside the U.S.

in 2022 and 2021 relate primarily to lump-sum payouts in Canada as well as terminated employees that participate in a Mexican severance indemnity program that is accounted for as a defined benefit plan.

Settlement losses outside the U.S.

in 2020 and 2019 relate primarily to terminated employees that participate in a Mexican severance indemnity program that is accounted for as a defined benefit plan.

in 2020 relate primarily to terminated employees that participate in a Mexican severance indemnity program that is accounted for as a defined benefit plan.

The components of net periodic pension cost other than the service cost component are included in interest and other nonoperating income (expense) in the consolidated statements of operations.

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Benefits paid ( 45.0 ) ( 46.9 ) ( 16.1 ) ( 13.8 ) ( 61.1 ) ( 60.7 )

Actuarial (gains) losses ( 42.7 ) 98.5 ( 16.9 ) 42.9 ( 59.6 ) 141.4

Actuarial gains ( 190.2 ) ( 42.7 ) ( 127.3 ) ( 16.9 ) ( 317.5 ) ( 59.6 )

Foreign currency exchange effects — — ( 25.4 ) ( 16.2 ) ( 25.4 ) ( 16.2 )

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Employer contributions 0.6 0.7 14.7 12.5 15.3 13.2

Acquisitions — — — 80.3 — 80.3

Settlements — — ( 10.8 ) ( 14.0 ) ( 10.8 ) ( 14.0 )

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Beginning of year $ ( 228.3 ) ( 321.5 ) ( 61.3 ) ( 82.4 ) ( 289.6 ) ( 403.9 )

Net actuarial gains (losses) arising during the year 59.2 ( 53.5 ) 10.5 ( 5.9 ) 69.7 ( 59.4 )

Net actuarial gains arising during the year 17.4 59.2 33.5 10.5 50.9 69.7

Reclassification adjustment for amortization of prior actuarial losses included in net income (loss) 24.2 34.0 5.2 9.9 29.4 43.9

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End of year $ — — ( 0.1 ) 0.1 ( 0.1 ) 0.1

The net actuarial gains of $ 59.2 million in 2021 and losses of $ 53.5 million in 2020 were mainly driven by changes in the primary U.S.

The net actuarial gains of $ 17.4 million in 2022 and gains of $ 59.2 million in 2021 were mainly driven by changes in the primary U.S.

pension plan.

The 2021 net actuarial gains arose primarily from a higher discount rate at the end of the year ($ 41 million) and higher actual return on assets than expected ($ 17 million).

The 2020 net actuarial losses arose from a lower discount rate at the end of the year ($ 93 million) and a loss from updates to the census data ($ 5 million), partially offset by higher actual return on assets than expected ($ 45 million).

The 2022 net actuarial gains arose primarily from a higher discount rate at the end of the year ($ 193 million), which was largely offset by lower actual return on assets than expected ($ 173 million).

The 2021 net actuarial gains arose from a higher discount rate at the end of the year ($ 41 million) and higher actual return on assets than expected ($ 17 million).

The net actuarial gains of $ 33.5 million in 2022 were primarily due to higher discount rates at the end of the year ($ 133 million), largely offset by actual return on assets being lower than expected ($ 94 million).

The net actuarial gains of $ 10.5 million in 2021 were primarily due to actual return on assets being higher than expected ($ 10 million).

The net actuarial losses of $ 5.9 million in 2020 were primarily due to lower discount rates at the end of the year ($ 45 million), largely offset by actual return on assets being higher than expected ($ 37 million).

Information Comparing Plan Assets to Plan Obligations

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Projected benefit obligation 627.2 839.5 191.1 276.2 818.3 1,115.7

2019 Annuity Contract Buy-out

On October 8, 2019, we purchased a single premium group annuity contract from an insurance company to provide for the payment of pension benefits to approximately 2,600 primary U.S.

pension plan participants.

We purchased the contract with $ 53 million of plan assets.

The insurance company took over the payments of these benefits starting January 1, 2020.

This transaction settled $ 54 million of our primary U.S.

pension plan obligation.

As a result, we recognized a settlement charge of $ 19.3 million in the fourth quarter of 2019.

The weighted-average assumptions used to determine the net pension cost and benefit obligations for our pension plans were as follows:

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Amortization of prior service credit ( 4.6 ) ( 4.7 ) ( 4.7 ) ( 0.3 ) ( 0.3 ) ( 0.3 ) ( 4.9 ) ( 5.0 ) ( 5.0 )

Curtailment gain — — — — — ( 0.1 ) — — ( 0.1 )

Net periodic postretirement cost $ 2.5 10.3 11.5 $ 10.8 12.0 11.9 $ 13.3 22.3 23.4

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Interest cost 10.3 9.8 3.7 3.2 14.0 13.0

Plan amendments ( 66.7 ) — — — ( 66.7 ) —

Benefits paid ( 20.3 ) ( 22.9 ) ( 9.0 ) ( 8.1 ) ( 29.3 ) ( 31.0 )

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Employer contributions — — 9.0 8.1 9.0 8.1

Net transfers to plan assets — 1.7 — — — 1.7

Net transfers from plan assets ( 3.6 ) — — — ( 3.6 ) —

Benefits paid ( 20.3 ) ( 22.9 ) ( 9.0 ) ( 8.1 ) ( 29.3 ) ( 31.0 )

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Beginning of year $ 18.6 23.3 0.6 0.9 19.2 24.2

Prior service credit from plan amendments during the year 66.7 — — — 66.7 —

Reclassification adjustment for amortization or curtailment of prior service cost included in net income (loss) ( 4.6 ) ( 4.7 ) ( 0.3 ) ( 0.3 ) ( 4.9 ) ( 5.0 )

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End of year $ 80.7 18.6 0.3 0.6 81.0 19.2

The net actuarial gains of $ 58.5 million in 2022 arose primarily due to a higher discount rate at the end of the year ($ 78 million) and favorable medical claims experience ($ 12 million).

This was partially offset by lower actual return on assets than expected ($ 28 million) and updates to the UMWA census data ($ 12 million).

We recognized a prior service credit in 2022 associated with UMWA obligations due to a plan amendment that changed the medical plan to a group Medicare Advantage plan ($ 67 million), which reduced future expected net per capita claims costs.

The net actuarial gains of $ 50.2 million in 2021 arose primarily due to a higher discount rate at the end of the year ($ 23 million), higher actual return on assets than expected ($ 21 million) and favorable medical claims experience ($ 9 million).

The net actuarial losses of $ 27.4 million in 2020 arose primarily due to a lower discount rate at the end of the year ($ 37 million).

This was partially offset by favorable medical claims experience ($ 10 million).

Black Lung and Other Plans

We recognized net actuarial gains of $ 18.9 million in 2022.

This was primarily due to a higher discount rate compared to the prior period ($ 18 million).

We recognized net actuarial losses of $ 0.6 million in 2021.

This was primarily due to updates to the black lung census data ($ 10 million), largely offset by a higher discount rate compared to the prior period ($ 4 million), and favorable medical claims experience ($ 4 million).

We recognized net actuarial losses of $ 11.8 million in 2020.

This was primarily due to a lower discount rate compared to the prior period ($ 8 million), and updates to the black lung census data ($ 5 million) partially offset by less than expected claims ($ 3 million).

See Mortality Tables for our U.S.

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Additionally, by providing healthcare benefits under an EGWP, we are able to benefit from the mandatory 50 % discount that pharmaceutical companies must provide for Medicare Act-eligible prescription drugs.

In 2022, we amended our UWMA plans by transferring the majority of our retirees from a self-insured medical plan to a fully insured group Medicare Advantage plan starting in 2023.

As a result, we updated our claims assumption for the plan amendment as of December 31, 2022, which reduced our obligation by $ 66.7 million and was recognized as a prior service credit as of December 31, 2022.

Estimated Contributions from the Company to Plan Assets

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Among other factors, the performance of asset groups and investment managers will affect the long-term rate of return.

In 2018, the UMWA plans re-locked their energy debt investment for another three years , which will expire in 2022.

In 2018, the UMWA plans re-locked their energy debt investment for another three years , which expired in 2022.

We did not re-lock the energy debt investment as the fund will be liquidated in 2023.

The global private equity investment cannot be redeemed due to the nature of the underlying investments.

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The core property fund investment can be redeemed quarterly with 95 days’ notice.

The energy debt investment can be redeemed semi-annually with 95 days' notice after the three year lock up expires.

We believe all plans have sufficient liquidity to meet the needs of the plans' beneficiaries in all market scenarios.

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European equity funds (a)

Emerging markets (a)

Other global equity funds (a)

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Taxes on cross border income, net of credits 6.9 4.6 11.0

Tax on accelerated U.S.

Adjustments to valuation allowances ( 21.1 ) 6.7 6.6

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Actual income tax rate on continuing operations 18.3 % 51.1 % 71.4 %

(a) In 2019, we recognized a benefit of $ 7.3 million related to a previously recognized $ 23.5 million current tax expense that accelerated U.S.

taxable income in 2015.

Components of Deferred Tax Assets and Liabilities

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Net operating loss carryforwards 53.4 72.8

Foreign tax and other tax credits (a)

Interest limitations and other tax carryforwards (a)

Foreign tax and other tax credits (b)

Subtotal 464.5 514.1

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Net deferred tax asset $ 178.4 190.2

foreign tax credits of $ 78.6 million have a 10 year carryforward period and the remaining credits of $ 4.2 million have various carryforward periods.

foreign tax credits and other U.S.

tax credits have a valuation allowance.

interest limitation carryforward of $ 10.8 million has an unlimited carryforward and is not subject to a valuation allowance.

In addition, foreign interest limitation and other tax carryforwards of $ 9.8 million have an unlimited carryforward and are subject to a full valuation allowance.

foreign tax credits of $ 54.0 million expire in various years between 2023 and 2031 and other remaining credits of $ 3.4 million have various expiration periods.

foreign tax credits and other credits have a valuation allowance of $ 10.3 million.

Valuation Allowances

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Amounts are recognized in income from continuing operations.

The 2022 change in judgment includes the impact of the U.S.

final foreign tax credit regulations.

We determined a significant amount of the post-2021 foreign withholding taxes will now be ineligible for U.S.

foreign income tax credit treatment and therefore our U.S.

operations will no longer annually be generating new foreign tax credits in excess of its annual foreign tax credit utilization limit.

As a result, we expect to be able to utilize a substantial amount of our foreign tax credit and general business tax credit carryforwards to offset future tax prior to their expiration..

Net Operating Losses

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Increases related to acquisitions 0.3 11.8 4.1

Decreases related to acquisitions — — —

Settlements ( 2.4 ) ( 2.5 ) ( 2.1 )

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Included in the balance of unrecognized tax benefits at December 31, 2022, are potential benefits of approximately $ 19.8 million that, if recognized, will reduce the effective tax rate on income from continuing operations.

We recognize accrued interest and penalties related to unrecognized tax benefits in provision (benefit) for income taxes.

We recognize accrued interest and penalties related to unrecognized tax benefits in the provision (benefit) for income taxes.

We reverse interest and penalty accruals when a statute of limitation lapses or when we otherwise conclude the amounts should not be accrued.

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federal and various state and foreign jurisdictions.

With a few exceptions, as of December 31, 2021, we were no longer subject to U.S.

federal, state and local, or non-U.S.

As of December 31, 2022, we are subject to U.S.

Federal income tax examination by tax authorities for the taxable year ending December 31, 2019, but with few exceptions, we are no longer subject to any state and local, or non-U.S.

income tax examinations by tax authorities for years before 2019.

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Capitalized software (a)

DRS devices leased to customers 190.3 170.7

Other machinery and equipment 666.4 624.3

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Note 7 - Acquisitions and Dispositions

In 2022, we acquired United Kingdom-based business operations that manage ATMs and we acquired net assets from an ATM and cash management solutions company in the U.S., which we have accounted for as a business combination.

See details of the 2022 acquisitions below.

In 2021, we completed the acquisition of operations from G4S plc (“G4S”) and acquired PAI Midco, Inc.

In 2020, we acquired multiple business operations from G4S at different times during the year.

In 2019, we acquired four business operations.

We accounted for these acquisitions as business combinations using the acquisition method.

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The consolidated statements of operations include the results of operations for each acquired entity from the date of acquisition.

NoteMachine Limited Acquisition

On October 3, 2022 , we acquired 100 % of the capital stock of NoteMachine Limited and Testlink Services Limited.

At the acquisition date, these two entities directly owned 100% of the ownership interests in three additional entities (collectively, the five entities are referred to as "NoteMachine").

We acquired the NoteMachine businesses for approximately $ 194 million.

NoteMachine is based in the United Kingdom and manages a portfolio of ATMs.

NoteMachine generated approximately $ 150 million in revenues in the twelve month period prior to the acquisition.

We estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition in the following table.

The determination of estimated fair value required management to make significant estimates and assumptions.

The amounts reported are considered provisional as we are completing the valuations that are required to allocate the purchase price in areas such as intangible assets, property and equipment, deferred tax assets and liabilities and goodwill.

As a result, the allocation of the provisional purchase price may change in the future.

(In millions) Estimated Fair Value at Acquisition Date

Fair value of purchase consideration

Cash paid through December 31, 2022 $ 178.9

Contingent consideration 14.8

Fair value of purchase consideration $ 193.7

Fair value of net assets acquired

Restricted cash 15.3

Accounts receivable 38.1

Other current assets 14.5

Property and equipment, net 39.9

Intangible assets (a)

Other noncurrent assets 5.1

Current liabilities ( 50.2 )

Other noncurrent liabilities ( 22.7 )

Fair value of net assets acquired $ 193.7

(a) Intangible assets are composed of customer relationships ($ 47 million fair value and 13 year amortization period), developed technology ($ 27 million fair value and 12 year amortization period) and a trade name ($ 10 million fair value and 5 year amortization period).

(b) Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating NoteMachine's operations with our existing Brink's operations.

Goodwill of $ 61 million has been assigned to the Europe reporting unit and goodwill of $ 2 million has been assigned to the North America reporting unit.

We do not expect goodwill in these reporting units to be deductible for tax purposes.

Touchpoint 21 Acquisition

In January 2022, we acquired net assets from Touchpoint 21 LLC, an ATM and cash management solutions company operating in Texas and Oklahoma.

We have determined that this acquisition represents a business combination and we have recorded acquired assets and liabilities at estimated fair value.

The purchase consideration is approximately $ 15 million.

PAI, Midco Inc.

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and generated approximately $ 94 million in revenues in 2020.

We have provisionally estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition in the following table.

We estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition.

The determination of estimated fair value required management to make significant estimates and assumptions.

The amounts reported are considered provisional as we are completing the valuations that are required to allocate the purchase price in areas such as taxes and goodwill.

As a result, the allocation of the provisional purchase price may change in the future.

We finalized our purchase price accounting for PAI in the first quarter of 2022.

There were no material changes in 2022 to the amounts previously

(In millions) Estimated Fair Value at Acquisition Date

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We believe that we meet the accounting criteria for consolidating these subsidiaries.

In the aggregate, the purchase consideration for the G4S acquisitions as of December 31, 2021 is $ 826 million.

In the aggregate, the purchase consideration for the G4S acquisitions is $ 826 million.

We also paid G4S approximately $ 114 million for net intercompany receivables from the acquired subsidiaries.

The indemnification assets are primarily related to pre-acquisition income tax contingencies for which the seller has indemnified Brink's against loss.

The G4S businesses acquired generated approximately $ 800 million in revenues in 2019.

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The fair value of the contingent consideration reflected in the table below is the full $ 22 million that remains potentially payable as of December 31, 2022 as we believe it is unlikely that the contingent consideration payments will be reduced.

We finalized our purchase price accounting in 2021 for the businesses we acquired in 2020.

For the remaining businesses acquired from G4S in 2021, we have provisionally estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition in the following table.

We estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition.

The determination of estimated fair value required management to make significant estimates and assumptions.

The amounts reported are considered provisional as we are completing the valuations that are required to allocate the purchase price, primarily in the areas of taxes and goodwill.

As a result, the allocation of the provisional purchase price may change in the future.

We finalized our purchase price accounting in 2021 for the businesses we acquired in 2020.

For the remaining businesses acquired from G4S in 2021, we finalized our purchase accounting in the first quarter of 2022.

There were no material changes in 2022 to the amounts previously disclosed.

(In millions) Estimated Fair Value at Acquisition Date

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Liabilities assumed from seller 2.9

Indemnification asset ( 15.9 )

Indemnification assets ( 15.9 )

Fair value of purchase consideration $ 825.9

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We do not currently expect goodwill in these reporting units to be deductible for tax purposes.

Rodoban Transportes Aereos e Terrestres Ltda., Rodoban Servicos e Sistemas de Seguranca Ltda., and Rodoban Seguranca e Transporte de Valores Ltda ("Rodoban")

Brazilian cash management business

On January 4, 2019 , we acquired 100 % of the capital stock of Rodoban in Brazil for $ 134 million.

The Rodoban business expanded our operations in southeastern Brazil and was integrated into our existing Brink's Brazil operations.

Rodoban has approximately 2,900 employees, 13 branches and about 190 armored vehicles across its operations.

We estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition in the following table.

The determination of estimated fair value required management to make significant estimates and assumptions.

We finalized our purchase price accounting in the fourth quarter of 2019.

There have been no significant changes to our fair value estimates of the net assets acquired of Rodoban.

(In millions) Estimated Fair Value at Acquisition Date

Fair value of purchase consideration

Cash paid through December 31, 2021 $ 135.7

Indemnification asset ( 1.9 )

Fair value of purchase consideration $ 133.8

Fair value of net assets acquired

Accounts receivable 8.9

Other current assets 0.5

Property and equipment, net 2.4

Intangible assets (a)

Other noncurrent assets 5.8

Current liabilities ( 11.4 )

Noncurrent liabilities ( 7.9 )

Fair value of net assets acquired $ 133.8

(a) Intangible assets are composed of customer relationships ($ 47 million fair value and 11 year amortization period), trade name ($ 1 million fair value and 1 year amortization period), and non-compete agreement ($ 1 million fair value and 5 year amortization period).

(b) Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating Rodoban’s operations with our existing Brink’s Brazil operations.

All of the goodwill has been assigned to the Latin America reporting unit and is expected to be deductible for tax purposes.

Other 2019 acquisitions

On June 12, 2019 , we acquired 100 % of the capital stock of Balance Innovations, LLC and its wholly owned subsidiary, Balance Innovations Services, Inc.

(together "BI").

BI develops and licenses software that provides real-time data to optimize operations for general retail and convenience store industries throughout the United States and Canada.

This acquisition enhances our ability to deliver technology-enabled, end-to-end retail cash management services.

On June 14, 2019 , we acquired 100 % of the capital stock of Comercio Eletronico Facil Ltda.

("COMEF"), a Brazil-based company.

COMEF offers bank correspondent services and bill payment processing and supplements our existing Brazilian payment services businesses.

On September 30, 2019 , we acquired 100 % of the capital stock of Transportadora de Valores del Sur Limitada and its wholly owned subsidiary, TVS Pagos, Recaudos y Procesos S.A.S.

(together "TVS").

TVS provides CIT and money processing services in Colombia.

This acquisition provides opportunities for branch consolidation and route efficiencies and positions our existing Colombian business as well as TVS to more effectively service our customers.

The aggregate purchase price of these three business acquisitions (BI, COMEF, and TVS) was $ 49 million.

These three acquired operations employ approximately 1,300 people in the aggregate.

For these three business acquisitions (BI, COMEF and TVS), we estimated fair values for the assets purchased and liabilities assumed as of the date of the acquisitions.

These estimated amounts are aggregated in the following table.

The determination of estimated fair value required management to make significant estimates and assumptions.

We finalized our purchase price accounting for these business acquisitions in 2020.

(In millions) Estimated Fair Value at Acquisition Date

Fair value of purchase consideration

Cash paid through December 31, 2021 $ 60.6

Contingent consideration 1.6

Indemnification asset ( 13.3 )

Fair value of purchase consideration $ 48.9

Fair value of net assets acquired

Accounts receivable 4.5

Property and equipment, net 7.1

Intangible assets (a)

Other current and noncurrent assets 2.0

Current liabilities ( 15.2 )

Noncurrent liabilities ( 14.6 )

Fair value of net assets acquired $ 48.9

(a) Intangible assets are composed of developed technology, customer relationships and trade names.

(b) Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating these acquired operations into our existing operations.

The goodwill from these acquisitions has been assigned to the following reporting units:

BI (North America), COMEF (Latin America) and TVS (Latin America).

We do not expect goodwill related to COMEF or TVS to be deductible for tax purposes.

We expect goodwill related to BI to be deductible for tax purposes.

Actual and Pro Forma (unaudited) disclosures

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(In millions) Revenue Net income attributable to Brink's

Actual results included in Brink's consolidated 2021 and 2020 results for businesses acquired in 2021 and 2020 from the date of acquisition

Actual results included in Brink's consolidated 2022 and 2021 results for businesses acquired in the same year from the date of acquisition

Twelve months ended December 31, 2022

PAI $ 98.8 6.9

G4S 674.2 25.6

NoteMachine $ 35.2 2.1

Total $ 35.2 2.1

Twelve months ended December 31, 2021

G4S $ 442.7 10.5

Total $ 98.8 6.9

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Brink's as reported $ 4,535.5 170.6

NoteMachine (a)

Total $ 4,644.7 180.5

Brink's as reported $ 4,200.2 105.2

NoteMachine (a)

Total $ 4,382.4 114.9

(a) Represents amounts prior to acquisition by Brink's.

Argentina Union Payments

In the third quarter of 2017, we acquired 100 % of the shares of Maco Transportadora de Caudales S.A.

("Maco Transportadora") and Maco Litoral, S.A.

("Maco Litoral" and, together with Maco Transportadora, "Maco").

Maco Transportadora is a Cash-in-transit ("CIT") and money processing business and Maco Litoral provides CIT and ATM services.

Both businesses operate in Argentina.

Although the Maco operations were acquired by Brink's Argentina in 2017, the National Antitrust Authority did not formally approve the business acquisitions until 2021.

The approval was issued conditioned on the divestiture of certain armored vehicles and relocation of other armored vehicles.

These actions were completed in 2022.

Upon the acquisition approval by the National Antitrust Authority, the national teamster unions demanded that Maco employees be paid severance benefits as if the employees had been terminated in 2022 and then immediately rehired by Brink's Argentina without their seniority.

Brink's Argentina management has finalized negotiations with the Maco Transportadora and Maco Litoral unions and has agreed to pay amounts to the union members.

In 2022, we recognized a $ 12.5 million charge in connection with these negotiations.

Due to the fact that management has excluded this amount when evaluating internal performance, we have excluded it from segment results.

Acquisition costs

We have incurred $ 5.6 million in transaction costs related to business acquisitions in 2022 ($ 6.5 million in 2021 and $ 19.3 million in 2020).

These costs are classified in the consolidated statement of operations as selling, general and administrative expenses.

These costs are classified in the consolidated statements of operations as selling, general and administrative expenses.

On January 1, 2020 , we sold 100 % of our ownership interest in a French security services company for a net sales price of approximately $ 11 million.

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Total Goodwill $ 1,411.7 67.0 ( 27.8 ) 1,450.9

(a) Includes adjustments related to the finalization of valuations in prior year acquisitions ($ 0.1 million increase in North America, $ 9.6 million decrease in Europe and $ 4.8 million decrease in Rest of World ).

(a) Includes adjustments related to the finalization of valuations in prior year acquisitions ($ 0.8 million decrease in North America and $ 0.1 million decrease in Rest of World ).

December 31, 2021

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Total Goodwill $ 1,219.2 241.9 ( 49.4 ) 1,411.7

(a) Includes adjustments related to the finalization of valuations in prior year acquisitions ($ 0.9 million in Latin America).

Intangible Assets

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(In millions) 2022 2021

Sale-type lease receivables $ 66.3 42.6

Marketable securities 39.3 24.1

Loans held for investment (see Note 20) 38.6 12.0

Deposits 27.4 32.6

Deferred profit sharing asset 10.6 10.7

Income tax receivable 5.6 7.3

Derivative instruments 43.0 20.4

Prepaid pension assets 17.7 18.4

Equity method investment in unconsolidated entities 4.8 4.9

Stop loss insurance receivable 12.7 14.5

Cash surrender value of life insurance policies 0.8 0.9

Indemnification asset 22.1 17.5

Debt issue costs 4.7 6.0

Marketable securities 24.1 24.8

Indemnification assets 16.3 22.1

Derivative instruments 11.1 43.0

Other 69.5 65.4

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( 6.5 ) 2.7 ( 5.8 ) 1.4 ( 8.2 )

Unrealized losses on available-for-sale securities ( 0.1 ) — — — ( 0.1 )

Unrealized gains (losses) on available-for-sale securities ( 1.2 ) 0.5 0.3 ( 0.1 ) ( 0.5 )

Gains (losses) on cash flow hedges 25.2 ( 0.8 ) 12.4 ( 4.1 ) 32.7

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( 13.2 ) 2.7 ( 5.8 ) 1.4 ( 14.9 )

Unrealized losses on available-for-sale securities (c)

Unrealized gains (losses) on available-for-sale securities (c)

( 1.2 ) 0.5 0.3 ( 0.1 ) ( 0.5 )

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Foreign currency translation adjustments ( 52.6 ) ( 6.8 ) ( 4.1 ) 1.0 ( 62.5 )

Unrealized gains (losses) on available-for-sale securities ( 0.1 ) — — — ( 0.1 )

Gains (losses) on cash flow hedges 8.1 ( 2.5 ) 11.0 ( 2.7 ) 13.9

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( 54.8 ) ( 6.8 ) ( 4.1 ) 1.0 ( 64.7 )

Unrealized gains (losses) on available-for-sale securities (c)

( 0.1 ) — — — ( 0.1 )

Gains (losses) on cash flow hedges (d)

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Amounts attributable to noncontrolling interests:

Benefit plan adjustments 0.2 — — — 0.2

Foreign currency translation adjustments 4.6 — — — 4.6

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Interest and other nonoperating income (expense) 16.7 38.7 37.9

(b) 2021 foreign currency translation adjustment amounts reflect primarily the devaluation of the euro, the Chilean peso, the Brazilian real and the Mexican peso.

(b) 2022 foreign currency translation adjustment amounts reflect primarily the devaluation of the British pound and the Chilean peso, partially offset by appreciation of the Mexican peso and the Brazilian real.

2021 foreign currency translation adjustment amounts reflect primarily the devaluation of the euro, the Chilean peso, the Brazilian real and the Mexican peso.

2020 foreign currency translation adjustment amounts reflect primarily the appreciation of the euro and various currencies related to the G4S acquisition, partially offset by the devaluation of the Brazilian real, the Mexican peso and the Colombian peso.

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(d) Pretax gains and losses on cash flow hedges are classified in the consolidated statements of operations as

• other operating income (expense) ($ 0.1 million gain in 2021, $ 22.1 million gain in 2020 and $ 5.8 million gain in 2019.)

• other operating income (expense) ($ 8.9 million loss in 2022, $ 0.1 million gain in 2021 and $ 22.1 million gain in 2020.)

• interest expense ($ 3.5 million of expense in 2022, $ 11.1 million of expense in 2021 and $ 9.8 million in 2020.)

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Other comprehensive income (loss) attributable to Brink's ( 31.8 ) 19.6 — ( 8.8 ) ( 21.0 )

Cumulative effect of change in accounting principle (a)

( 28.8 ) — — — ( 28.8 )

Balance as of December 31, 2020 ( 614.8 ) ( 363.2 ) — ( 22.0 ) ( 1,000.0 )

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Other comprehensive income (loss) attributable to Brink's 183.3 ( 8.2 ) ( 0.5 ) 32.7 207.3

Acquisitions of noncontrolling interests — 0.1 — — 0.1

Balance as of December 31, 2022 $ ( 290.7 ) ( 433.8 ) ( 0.6 ) 24.6 ( 700.5 )

(a) We adopted ASU 2018-02 (see Note 1) effective January 1, 2019 and recognized a cumulative-effect adjustment to retained earnings.

Note 12 - Fair Value of Financial Instruments

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At December 31, 2022, the notional value of our outstanding foreign currency forward and swap contracts was $ 575 million, with average maturities of approximately one month .

These foreign currency forward and swap contracts primarily offset exposures in the euro, the British pound and the Mexican peso and are not designated as hedges for accounting purposes.

These foreign currency forward and swap contracts primarily offset exposures in the euro and the Mexican peso and are not designated as hedges for accounting purposes.

Accordingly, changes in their fair value are recorded immediately in earnings.

At December 31, 2021, the fair value of our short term 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 consolidated balance sheet.

At December 31, 2022, the fair value of our short term foreign currency contracts was a net liability of approximately $ 7.0 million, of which $ 3.5 million was included in prepaid expenses and other and $ 10.5 million was included in accrued liabilities on the 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 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:

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

Twelve Months Ended December 31,

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Derivative instrument losses included in other nonoperating income (expense) (a)

(a) Represents net losses on foreign currency forward contracts related to acquisitions of business operations from G4S.

(a) Represents net losses on foreign currency forward contracts related to acquisitions of business operations from G4S in 2020.

In the first quarter of 2019, we entered into a long term cross currency swap contract to hedge exposure in Brazilian real, which is designated as a cash flow hedge for accounting purposes.

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At December 31, 2022, the notional value of this long term contract was $ 53 million with a weighted-average maturity of 0.6 years.

At December 31, 2022, the fair value of the long term cross currency swap contract was an asset of $ 14.6 million and was included in prepaid expenses and other on the 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 consolidated balance sheet.

At December 31, 2020, the fair value of the long term cross currency swap contract was a $ 23.6 million net asset, of which a $ 3.2 million asset is included in prepaid expenses and a $ 20.4 million asset is included in other assets on the 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:

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Derivative instrument gains included in other operating income (expense) $ ( 8.9 ) 0.2 22.1

Offsetting transaction losses ( 0.2 ) ( 22.1 ) ( 5.8 )

Offsetting transaction gains 8.9 ( 0.2 ) ( 22.1 )

Derivative instrument losses included in interest expense ( 1.3 ) ( 1.3 ) ( 1.9 )

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At December 31, 2022, the notional value of these contracts was $ 400 million with a remaining weighted-average maturity of 0.6 years.

At December 31, 2021, the fair value of these interest rate swaps was a net liability of $ 13.9 million, of which $ 8.3 million was included in accrued liabilities and $ 5.6 million was included in other liabilities on the consolidated balance sheet.

At December 31, 2022, the fair value of these interest rate swaps was a net asset of $ 10.0 million, of which $ 9.3 million was included in prepaid expenses and other and $ 0.7 million was included in other assets on the consolidated balance sheet.

In the first quarter of 2022, we entered into four forward-starting interest rate swaps that hedge cash flow risk associated with changes in variable interest rates and that were designated as cash flow hedges for accounting purposes.

The forward-starting interest rate swaps had a maturity date in July 2030 and had a mandatory settlement scheduled to occur in July 2022.

In July 2022, an amendment was executed to terminate the four forward-starting interest rates swaps and concurrently enter into three forward-starting interest rate swaps with an amended maturity in June 2027.

We designated these interest rates swaps as cash flow hedges for accounting purposes.

Accordingly, the changes in the fair value of these cash flow hedges are initially recorded in the gains (losses) on cash flow hedges component of accumulated other comprehensive income (loss).

We reclassify amounts from accumulated other comprehensive income (loss) into earnings in the same periods that the hedged debt affects earnings.

As of the July 2022 termination date of the four previous interest rate swaps, a cumulative net gain of $ 9.2 million was recorded in accumulated other comprehensive income (loss).

This amount will be reclassified to earnings as forecasted interest payments occur through the original maturity date in July 2030.

The three new interest rate swaps had an inception date fair value equal to a $ 9.2 million asset, approximating the settlement value of the four previous interest rate swaps.

Instead of receiving cash upon termination of the previous swaps, we elected to negotiate a lower off-market fixed rate for the three new interest rate swaps.

This inception date fair value will be amortized to earnings on a ratable and systematic basis through the maturity date of the new interest rate swaps in June 2027.

At December 31, 2022, the notional value of these contracts was $ 200 million with a remaining weighted-average maturity of 2.3 years.

December 31, 2022, the fair value of these interest rate swaps was a net asset of $ 16.4 million of which $ 6.0 million was included in

prepaid expenses and other and $ 10.4 million was included in other assets on the consolidated balance sheet.

In the fourth quarter of 2022, we entered into two interest rate swaps with a maturity date of June 2027.

These swaps are intended to hedge cash flow risk associated with changes in variable interest rates and were designated as cash flow hedges for accounting purposes.

Accordingly, changes in the fair value of these cash flow hedges are initially recorded in the gains (losses) on cash flow hedges component of accumulated other comprehensive income (loss).

We reclassify amounts from accumulated other comprehensive income (loss) into earnings in the same periods that the hedged debt affects earnings.

At December 31, 2022, the notional value of these contracts was $ 175 million with a remaining weighted-average maturity of 2.3 years.

December 31, 2022, the fair value of these interest rate swaps was a net asset of $ 1.0 million of which $ 2.0 million was included in prepaid expenses and other and $ 1.0 million was included in other liabilities on the consolidated balance sheet.

In the second quarter of 2021, we entered into ten cross currency swaps to hedge a portion of our net investments in certain of our subsidiaries with euro functional currencies.

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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 December 31, 2021, the notional value of these cross currency swap contracts was $ 400 million with a remaining weighted average maturity of 6.2 years.

At December 31, 2021, the fair value of these currency swaps was a net asset of $ 28.5 million, of which $ 6.0 million was included in prepaid expenses and other and $ 22.5 million was included in other assets on the consolidated balance sheet.

In July 2022, we terminated these cross currency swap contracts and received $ 67 million in cash for the fair value of the derivative assets at the settlement date.

We subsequently entered into a total of nine cross currency swaps with a total notional value 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 value of $ 215 million will terminate in May 2026 and swaps with a total notional value of $ 185 million will terminate in April 2031.

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

At December 31, 2022, the notional value of these cross currency swap contracts was $ 400 million with a remaining weighted average maturity of 2.7 years for the cross currency swaps maturing in May 2026 and a remaining weighted average maturity of 6.6 years for the cross currency swaps maturing in April 2031.

At December 31, 2022, the fair value of these currency swaps was a net liability of $ 11.7 million, of which $ 5.6 million was included in prepaid expenses and other and $ 17.3 million was included in other liabilities on the consolidated balance sheet.

At December 31, 2021, the fair value of these cross currency swaps was a net asset of $ 28.5 million, of which $ 6.0 million was included in prepaid expenses and other and $ 22.5 million was included in other assets on the consolidated balance sheet.

The effect of the interest rate swaps and the amortization of the spot-forward difference on the net investment hedges cross currency swaps is

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Cross currency swaps designated as net investment hedges ( 5.8 ) ( 4.1 ) —

Net derivative instrument losses included in interest expense $ 5.7 7.7 1.0

The fair values of these forward and swap contracts are based on the present value of net future cash payments and receipts, which we have categorized as a Level 2 valuation.

Net derivative instrument (gains) losses included in interest expense $ ( 3.6 ) 5.7 7.7

The fair values of these forward and swap contracts are based on the present value of net future cash payments and receipts, as well as inputs

related to forward interest rates and forward currency rates that are derived principally from, or corroborated by, observable market data,

which we have categorized as a Level 2 valuation.

Contingent Consideration

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The fair value of the contingent consideration is the full $ 22 million that remains potentially payable as of December 31, 2022 as we believe it is unlikely that the contingent consideration payments will be reduced.

In the fourth quarter of 2019, we paid the remaining contingent consideration payable for our acquisition of Maco Transportadora.

This remaining contingent consideration paid was a scheduled second installment, with the amount to be paid in the fourth quarter of 2019 based partially on the retention of customer revenue versus a target revenue amount.

If there was a shortfall in revenues, a multiple of 2.5 would have been applied to the revenue shortfall and the contingent consideration to be paid to the former owners would have been reduced.

Because there was no shortfall in revenues, no reduction occurred.

We paid an additional $ 15.1 million and settled the outstanding contingent consideration.

In the fourth quarter of 2022, we acquired NoteMachine and recognized a payable for contingent consideration, which consists of two components.

The first component is a payable based on post-acquisition increases in ATM cash withdrawal interchange fees through June 30, 2023.

The fair value of this payable was estimated at $ 4.3 million as of the October 3, 2022 acquisition date.

The second component is a payable contingent on our post-acquisition collection of ATM tax rate rebates from municipal governments in the U.K.

The fair value of this payable was estimated at $ 10.5 million as of the October 3, 2022 acquisition date.

Other Financial Instruments

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Payroll and other employee liabilities $ 175.8 159.6

Cash supply chain deposit liability 156.3 139.9

Taxes, except income taxes 127.0 100.4

Income taxes payable 43.1 21.6

Acquisition and disposition related obligations 12.3 10.0

Workers’ compensation and other claims 28.2 31.6

Cash held by cash management services operations (a)

Cash supply chain deposit liability 139.9 113.7

Retirement benefits (see Note 4) 15.9 13.1

Operating lease liabilities 74.7 77.3

Accrued interest 31.7 16.3

Workers’ compensation and other claims 30.1 28.2

ATM surcharge/interchange payables 26.6 27.6

Income taxes payable 25.7 43.1

Acquisition and disposition related obligations 21.4 12.3

Contract liability 17.0 17.9

Retirement benefits (see Note 4) 16.4 15.9

Derivative instruments 10.5 9.8

Chile Antitrust Fee Accrual (b)

Chile antitrust matter (b)

OASDI Tax (CARES Act) Liability — 10.7

ATM surcharge/interchange payables 27.6 —

Other 210.8 174.8

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Workers’ compensation and other claims $ 72.6 74.5

Post-employment benefits 7.0 7.2

Asset retirement and remediation obligations 31.9 27.4

Acquisition-related obligations 21.5 24.3

Derivative instruments 5.6 19.3

Noncurrent tax liabilities 21.4 16.1

Deferred compensation 20.0 13.1

Noncurrent tax liabilities 19.3 21.4

Derivative instruments 18.3 5.6

Post-employment benefits 5.9 7.0

Other 35.1 37.6

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Bank credit facilities:

Term loan A (year-end effective interest rate of 1.9 % in 2021 and 2.1 % in 2020)

Term loan A (year-end weighted average interest rate of 5.7 % in 2022 and 1.9 % in 2021)

less unamortized issuance cost of $ 5.1 million in 2022 and $ 3.7 million in2021

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less unamortized issuance cost of $ 7.9 million in 2022 and $ 10.2 million in 2021

Revolving Credit Facility (year-end weighted average interest rate of 2.5 % in 2021)

Revolving Credit Facility (year-end weighted average interest rate of 5.5 % in 2022 and 2.5 % in 2021)

Other facilities (year-end weighted-

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Senior Secured Credit Facility

In April 2020, we amended our senior secured credit facility (the “Senior Secured Credit Facility”) with Bank of America, N.A.

as administrative agent to increase the term loan borrowing by $ 590 million.

In June 2022, we amended our senior secured credit facility (the “Senior Secured Credit Facility”) with Bank of America, N.A.

as administrative agent.

After the amendment, the Senior Secured Credit Facility consisted of a $ 1 billion revolving credit facility (the "Revolving Credit Facility") and $ 1.4 billion of term loans (the "Term Loans").

The proceeds from the incremental term loan borrowings were used to repay outstanding principal under the Revolving Credit Facility as well as certain fees, costs and expenses related to the closing of the G4S acquisition.

In June 2020, we amended our Revolving Credit Facility to, among other things, change the methodology for calculating the Company’s leverage ratio by using a net first lien leverage ratio (net secured debt leverage ratio) instead of a total net debt leverage ratio.

All loans under the Revolving Credit Facility and the Term Loans mature five years after the date of the first amendment to the Senior Secured Credit Facility (February 8, 2024).

Principal payments for the Term Loans are due quarterly in an amount equal to 1.25 % of the initial loan amount with a final lump sum payment due on February 8, 2024.

Interest rates for the Senior Secured Credit Facility are based on LIBOR plus a margin or an alternate base rate plus a margin.

All loans under the Revolving Credit Facility and the Term Loans mature on June 23, 2027.

Principal payments for the Term Loans are due quarterly in an amount equal to 0.625 % of the initial loan amount for the first eight quarterly installment payments and 1.25 % for subsequent payments with a final lump sum payment due on June 23, 2027.

Interest rates for the Senior Secured Credit Facility are based on the Secured Overnight Financing Rate ("SOFR") plus a margin or an alternate base rate plus a margin.

The Revolving Credit Facility allows us to borrow money or issue letters of credit (or otherwise satisfy credit needs) on a revolving basis over the term of the facility.

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The Company and certain of its domestic subsidiaries also guarantee the obligations under the Senior Secured Credit Facility.

The margin on both LIBOR and alternate base rate borrowings under the Senior Secured Credit Facility is based on the Company’s total net debt leverage ratio.

The margin on LIBOR borrowings, which can range from 1.25 % to 2.50 %, was 1.75 % at December 31, 2021.

The margin on both SOFR and alternate base rate borrowings under the Senior Secured Credit Facility is based on the Company’s total net debt leverage ratio.

The margin on SOFR borrowings, which can range from 1.25 % to 1.75 %, was 1.50 % at December 31, 2022.

The margin on alternate base rate borrowings, which can range from 0.25 % to 0.75 %, was 0.50 % as of December 31, 2022.

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persons pursuant to Regulation S under the Securities Act.

The aggregate proceeds from the Senior Secured Credit Facility and the 2017 Senior Notes were used in part to repay certain prior indebtedness and certain fees and expenses related to the closing of the transactions.

Borrowings were used for working capital needs, capital expenditures, acquisitions and other general corporate purposes.

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The $ 15 million facility expires in April 2025.

The $ 32 million facility expires in December 2022 and the $ 16 million facility expires in January 2024.

We have three uncommitted letter of credit facilities totaling $ 65 million, of which approximately $ 42 million was available at December 31, 2021.

At December 31, 2021, we had undrawn letters of credit of $ 23 million issued under these facilities.

The $ 40 million facility expires in December 2022.

The $ 15 million facility and the $ 10 million facility have no expiration date.

The $ 32 million facility expires in October 2025 and the $ 24 million facility expires in May 2027.

We have two uncommitted letter of credit facilities totaling $ 55 million, of which approximately $ 29 million was available at December 31, 2022.

At December 31, 2022, we had undrawn letters of credit and guarantees of $ 26 million issued under these facilities.

The $ 40 million facility expires in March 2023.

The $ 15 million facility has no expiration date.

The Senior Secured Credit Facility is also available for issuance of letters of credit and bank guarantees.

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Credit losses

We are exposed to credit losses primarily through sales of our Core and High-Value services to customers with operations in the U.S.

We are exposed to credit losses primarily through sales of our Cash and Valuable Management services and DRS and AMS services to customers with operations in the U.S.

as well as customers in more than 100 countries outside the U.S.

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We assess currently expected credit losses in our financial assets on a pool basis by aggregating financial assets with similar risk characteristics.

We have pooled the financial assets by geographical location because of the similarities within each location such as customers, payment terms, and services offered.

We have pooled financial assets by geographic location because of the similarities within each location such as customers, payment terms, and services offered.

Loss experience is monitored for each pool and we determine historical loss rates for each pool.

These historical loss rates are the main assumption used in estimating expected credit losses over the life of the financial assets.

We monitor the aging of accounts receivables by country and write off any accounts that are deemed uncollectible.

We also monitor any significant economic events to identify any current or expected trends and risks within a pool that could impact the collectability of outstanding accounts receivables balances that were not contemplated or relevant during a previous period.

We also considered current and expected economic conditions, particularly the effects of the pandemic, in determining an appropriate allowance.

We monitor the aging of accounts receivable by country and write off any accounts that are deemed uncollectible.

We also monitor any significant economic events to identify any current or expected trends and risks within a pool that could impact the collectability of outstanding accounts receivable balances that were not contemplated or relevant during a previous period.

In the first quarter of 2022, as many of our regions began to recover from the ongoing COVID-19 pandemic, we re-assessed earlier assumptions and estimates, and we further refined our methodology of estimating the allowance for doubtful accounts.

Our updated method now also includes an estimated allowance for accounts receivable significantly past due in order to adjust for at-risk receivables not captured in our previous method.

In the subsequent quarters of 2022, the additional allowance was reduced by $ 1.1 million as a result of collections.

The following table is a rollforward of the allowance for doubtful accounts:

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( 3.4 ) ( 16.2 ) ( 17.0 )

Other 3.2 — —

Foreign currency exchange effects ( 0.7 ) ( 1.0 ) 0.6

End of year $ 38.3 16.9 30.7

(a) The provision includes no allowance in 2021, a $ 13.1 million allowance in 2020 and a $ 19.2 million allowance in 2019 related to the internal loss in our U.S.

(a) The provision includes no allowance in 2022 and 2021 and a $ 13.1 million allowance in 2020 related to the internal loss in our U.S.

global services operations.

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Note 17 - Leases

We lease facilities, vehicles, CompuSafe ® units, computers and other equipment under long-term operating and financing leases with varying terms.

We lease facilities, vehicles, certain DRS devices (including CompuSafe ® units), ATMs, computers and other equipment under long-term operating and financing leases with varying terms.

Most of the operating leases contain renewal and/or purchase options at our sole discretion.

The renewal periods differ by asset class and by country and are included in our determination of lease term if we determine we are reasonably certain to exercise the option.

We have taken the component election for all material asset categories, except CompuSafe units.

We have taken the component election for all material asset categories, except certain DRS devices (including CompuSafe ® units).

This election allows us to account for lease components (e.g., fixed payments or variable payments that depend on a rate that can be determined at commencement, including rent for the right to use the asset) together with nonlease components (e.g., other fixed payments that deliver a good or service including common-area maintenance costs) in the calculation of the right-of-use asset and corresponding liability.

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Note 18 - Share-Based Compensation Plans

We have share-based compensation plans to attract and retain employees and nonemployee directors and to more closely align their interests with those of our shareholders.

We have share-based compensation plans to attract and retain employees and non-employee directors and to more closely align their interests with those of our shareholders.

We have outstanding share-based awards granted to employees under the 2013 Equity Incentive Plan (the "2013 Plan") and the 2017 Equity Incentive Plan (the "2017 Plan").

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Compensation expense is measured using the fair-value-based method.

Prior to 2020, for employee and director awards considered equity grants, compensation expense was recognized from the award or grant date to the earlier of the retirement-eligible date or the vesting date.

Prior to 2020, for employee and director awards considered equity grants, compensation expense is recognized from the award or grant date to the earlier of the retirement-eligible date or the vesting date.

In 2020, the retirement eligibility provisions for many employee awards were changed on a go-forward basis to require a six month notification period prior to actual retirement.

For these awards, we recognize expense from the grant date to six months after the participant's retirement eligible date.

In 2021, the retirement eligibility provisions were changed on a go-forward basis to require minimum of a one year service period in order to meet the retirement eligible conditions.

For the 2021 awards, we recognize expense from the grant date to the earlier of the retirement-eligible date (provided it is not less than one year from the grant date) or the vesting date.

For the 2020 awards, we recognized expense from the grant date to six months after the participant's retirement eligible date.

In 2021, the retirement eligibility provisions were changed to require a minimum of a one year service period in order to meet the retirement eligible conditions.

For the 2021 and 2022 awards, we recognize expense from the grant date to the earlier of the retirement-eligible date (provided it is not less than one year from the grant date) or the vesting date.

For awards considered liability awards, compensation cost is based on the change in the fair value of the instrument for each reporting period and the percentage of the requisite service that has been rendered.

Compensation cost associated with liability awards was not significant in 2019.

Compensation expenses are classified as selling, general and administrative expenses in the consolidated statements of operations.

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For RSUs granted during the last three years, the units generally vest ratably in three equal annual installments.

In 2020, we additionally granted RSUs that will vest after a stated two year service condition has been met.

In 2020, we additionally granted RSUs that vested after a stated two year service condition had been met.

We measure the fair value of RSUs based on the price of Brink’s stock at the grant date, adjusted for a discount for dividends not received or accrued during the vesting period.

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We measure the fair value of these PSUs based on the price of Brink’s stock at the grant date, adjusted for a discount for dividends not received or accrued during the vesting period.

IM PSUs granted in 2022 and 2020 have a three year performance period.

IM PSUs granted in 2021 have a two year performance period with an additional one year of service.

IM PSUs grants in 2020 and 2019 have a three year performance period.

IM PSUs will be paid out in shares of Brink’s stock when the awards vest.

11 unchanged sentences

Granted 290.4 67.03

Forfeited ( 57.7 ) 82.69

Forfeited or expired (a)

( 82.5 ) 81.94

( 142.9 ) 77.61

Nonvested balance as of December 31, 2022 726.0 $ 76.66

(a) The vested PSUs presented are based on the target amount of the award.

(a) Although the service condition had been met, 23.6 thousand TSR PSUs granted in 2019 expired in accordance with the market condition terms of the underlying award agreement.

These units had a weighted average grant-date fair value of $ 105.57 per share.

(b) The vested PSUs presented are based on the target amount of the award.

In accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the performance period ended December 31, 2021 were 144.4 thousand, compared to target shares of 142.9 thousand.

The following table provides the terms and weighted-average assumptions used in the Monte Carlo simulation model for the TSR PSUs granted in 2022, 2021 and 2020:

Terms and Assumptions Used to Estimate Grant Date Fair Value 2021 TSR PSUs 2020 TSR PSUs 2019 TSR PSUs

Terms and Assumptions Used to Estimate Grant Date Fair Value 2022 TSR PSUs

2021 TSR PSUs

2020 TSR PSUs

Terms of awards:

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( 485.0 ) 29.87 5.91

Outstanding at December 31, 2021 (b)(c)

Outstanding at December 31, 2022 (b)

446.2 $ 61.23 $ 14.70 0.5 $ 0.3

1 unchanged sentence

Exercisable 446.2 $ 61.23 0.5 $ 0.3

Expected to vest in future periods — $ — — $ —

Expected to vest in future periods (c)

(a) The intrinsic value of a stock option is the difference between the market price of the shares underlying the option and the exercise price of the option.

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(b) There were 946.5 thousand exercisable options with a weighted average exercise price of $ 45.36 at December 31, 2021 an d 757.8 thousand exercisable options with a weighted average exercise price of $ 38.11 a t December 31, 2020.

At December 31, 2021, all outstanding performance options were vested.

Time-based Vesting Option Activity

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(in millions)

Outstanding at December 31, 2020 207.8 $ 81.30 $ 21.38

Forfeited or expired ( 30.7 ) 82.77 21.18

Outstanding at December 31, 2021 (b)

177.1 $ 81.05 $ 21.42

Forfeited or expired ( 15.5 ) 80.21 21.51

Outstanding at December 31, 2022

161.6 $ 81.13 $ 21.41 2.5 $ —

Of the above, as of December 31, 2022:

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The market price at December 31, 2022 was $ 53.71 .

(b) There were 2.7 thousand exercisable options with a weighted average exercise price of $ 84.65 at December 31, 2020 and there were no exercisable options at December 31, 2019.

(b) There were 2.7 thousand exercisable options with a weighted average exercise price of $ 84.65 at December 31, 2021 and December 31, 2020.

We currently have applied a 5 % expected forfeiture rate to the time-based vesting options.

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

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

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

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Expected stock price volatility (b)

29.7 % 30.3 %

Risk-free interest rate (c)

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Deferred Stock Units (“DSUs”)

We granted DSUs to our nonemployee directors in 2021 and in prior years.

We granted DSUs to our non-employee directors in 2022 and in prior years.

We measure the fair value of DSUs at the grant date, based on the price of Brink's stock, and, if applicable, adjusted for a discount for dividends not received or accrued during the vesting period.

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We paid regular quarterly dividends on our common stock during the last three years.

On January 24, 2022, the Board declared a regular quarterly dividend of 20 cents per share payable on March 1, 2022 to shareholders of record on February 7, 2022.

The payment of future dividends is at the discretion of the Board and is dependent on our future earnings, financial condition, shareholder equity levels, cash flow, business requirements and other factors.

On September 21, 2022, the Board of Directors declared a regular quarterly dividend of 20 cents per share payable on December 1, 2022 to shareholders of record on November 7, 2022.

The payment of future dividends is at the discretion of the Board of Directors and is dependent on our future earnings, financial condition, shareholder equity levels, cash flow, business requirements and other factors.

Preferred Stock

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Share Repurchase Program

On October 27, 2021, we announced that the Board authorized a $ 250 million share repurchase program that expires on December 31, 2023 (the "2021 Repurchase Program").

This authorization replaces our previous $ 250 million repurchase program, authorized by the Board in February 2020 (the "2020 Repurchase Program"), which expired on December 31, 2021, with no amount remaining available.

On October 27, 2021, we announced that our Board of Directors authorized a $ 250 million share repurchase program that expires on December 31, 2023 (the "2021 Repurchase Program").

This authorization replaces our previous $ 250 million repurchase program, authorized by the Board of Directors in February 2020 (the "2020 Repurchase Program"), which expired on December 31, 2021, with no amount remaining available.

Under the 2021 Repurchase Program, we are not obligated to repurchase any specific dollar amount or number of shares.

1 unchanged sentence

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

At December 31, 2021, $ 250 million remains available under the 2021 Repurchase Program.

In 2022, we repurchased a total of 948,395 shares of our common stock for an aggregate of $ 52.2 million and an average price of $ 55.01 per share.

These shares were retired upon repurchase.

At December 31, 2022, $ 198 million remained available under the 2021 Repurchase Program.

Under the 2020 Repurchase Program, we entered into three accelerated share repurchase arrangements ("ASR") with a financial institution.

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$ 50,000,000 655,699 $ 76.25

November 2021 $ 150,000,000 1,742,160 $ 86.10

November 2021 (a)

$ 150,000,000 1,742,160 $ 86.10

April 2022 (a)

$ 150,000,000 2,289,153 $ 65.53

$ 250,000,000 4,041,506 $ 61.86

(a) We received 1,742,160 shares in November 2021.

Under this ASR, the purchase period has a scheduled termination date of June 1, 2022, although the financial institution is eligible to early terminate the ASR after January 31, 2022.

At termination, either additional shares will be delivered to us or we will need to issue new shares of our common stock to the financial institution.

Under this ASR, the purchase period had a scheduled termination date of June 1, 2022, although the financial institution was eligible to early terminate the ASR after January 31, 2022.

In April 2022, the financial institution early terminated this ASR and we received additional 546,993 shares.

Shares Used to Calculate Earnings per Share

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Accordingly, basic and diluted shares include weighted-average units of 0.3 million in 2022, 0.3 million in 2021 and 0.3 million in 2020.

(b) Under the November 2021 ASR, based on our stock prices from November 1, 2021 to December 31, 2021, we would have received additional shares under the ASR if the settlement date had been December 31, 2021.

Because the ASR settlement date will not be until 2022 and because any anticipated receipt of additional shares of our common stock would have be antidilutive, no amounts were included the computation of diluted EPS.

(b) Under the November 2021 ASR, based on our stock prices from November 1, 2021 to March 31, 2022, we would have received additional shares under the ASR if the settlement date had been March 31, 2022.

Because the ASR settlement date did not occur until April 2022 and because any anticipated receipt of additional shares of our common stock would have be antidilutive, no amounts were included the computation of diluted EPS.

The antidilutive impact from the first quarter of 2022 continued to have year-to-date antidilutive impact for the remainder of 2022.

Note 20 - Supplemental Cash Flow Information

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In 2020, cash outflows from the purchases of these financial instruments totaled $ 20.5 million and cash inflows from the sale of these financial instruments totaled $ 10.1 million, resulting in $ 10.4 million in conversion losses at rates that were approximately 100 % less favorable than rates at which we remeasured the financial statements of Brink's Argentina.

In 2019, cash outflows from the purchase of these financial instruments totaled $ 23.6 million and cash inflows from the sale of these financial instruments totaled $ 18.9 million.

The net cash flows from these transactions are treated as operating cash flows as the financial instruments are purchased specifically for resale and are generally sold within a short period of time from the date of purchase.

We did not have any such conversions in 2021.

We did not have any such conversions in 2021 and 2022.

Argentina Marketable Securities

In 2021, we used available Argentine pesos to purchase equity and available for sale debt securities.

Cash outflows for the purchase of these financial instruments totaled $ 12.9 million and are reported in investing activities.

In 2022 and 2021, we used available Argentine pesos to purchase equity and available for sale debt securities.

Cash outflows for the purchase of these financial instruments totaled $ 27.6 million and $ 12.9 million, respectively, and are reported in investing activities.

Cash inflows totaled $ 9.9 million in 2022.

We did not have any cash inflows from the sale of these financial instruments in 2021.

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We acquired armored vehicles, CompuSafe ® units and other equipment under financing lease arrangements in the last three years including $ 65.7 million in 2022, $ 85.9 million in 2021 and $ 31.4 million in 2020.

Cash Paid for Acquisitions Included in Financing Activities

Loans Held for Investment

In France, as part of an ATM managed services contract for a large customer, we purchase the ATMs at the beginning of the contract.

However, since these ATMs are specifically for the benefit of the customer and transfer back to the customer at the end of the contract, this is recorded as a financing transaction.

As a result, the loan to the customer, net of payments received, is treated as investing cash flows.

Cash Paid for Acquisitions Included in Financing Activities In 2022, we paid $ 2.8 million in settlements related to the PAI acquisition.

In 2021, we received $ 3.2 million related to settlements in the G4S acquisition and paid $ 1.1 million related to PAI settlements.

In 2020, we paid $ 7.3 million related to the TVS acquisition completed in 2019.

In 2019, we paid $ 15.6 million in scheduled installments on the Maco Transportadora acquisition that was completed in the third quarter of 2017.

In 2019, we also paid $ 2.6 million in scheduled installments on the Rodoban acquisition that was completed in first quarter of 2019.

These payments are reported as cash outflows from financing activities as the payments were made more than three months after the acquisition date.

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The cash for which we have temporary title is restricted and cannot be used for any other purpose other than to service our customers who participate in this service offering.

In accordance with a revolving credit facility, we are required to maintain a restricted cash reserve of $ 15.0 million ($ 5.0 million at December 31, 2020) and, due to this contractual restriction, we have classified these amounts as restricted cash.

In accordance with our revolving credit facilities, we are required to maintain restricted cash reserves totaling $ 40.7 million ($ 15.0 million at December 31, 2021) and, due to this contractual restriction, we have classified these amounts as restricted cash.

At December 31, 2022, we held $ 438.5 million of restricted cash ($ 229.3 million represented restricted cash held for customers and $ 156.3 million represented accrued liabilities).

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Derivative instrument gains (losses) 42.0 24.2 ( 3.0 )

Gains (losses) on sale of property and other assets — 0.9 5.8

Royalty income 9.1 5.6 4.8

Impairment losses ( 9.0 ) ( 9.5 ) ( 11.6 )

Indemnification asset adjustments (b)

Gains on sale of property and other assets 2.7 — 0.9

Share in earnings of equity method affiliates 2.1 1.1 0.8

Royalty income 5.6 4.8 5.1

Insurance recoveries - Internal Loss (b)

Gains related to litigation (c)

Indemnity for forced relocation (d)

Insurance recoveries - Internal Loss (c)

Gains related to litigation (d)

Indemnity for forced relocation (e)

Other 4.3 4.2 3.7

1 unchanged sentence

(a) Includes remeasurement losses in Argentina of $ 37.6 million in 2022, $ 9.0 million in 2021 and $ 7.7 million in 2020 related to highly inflationary accounting.

(b) See details of the Internal Loss at Note 1.

(c) Gains recognized in the fourth quarter of 2021 in our Romanian operations related to favorable outcome of customer-related litigation.

(d) Indemnity received from the city of Paris to compensate for the forced relocation from a branch facility.

(b) Post-acquisition adjustments to indemnification assets recognized in previous business acquisitions.

(d) Gains recognized in the fourth quarter of 2021 in our Romanian operations related to favorable outcome of customer-related litigation.

(e) Indemnity received from the city of Paris to compensate for the forced relocation from a branch facility.

Note 22 - Interest and Other Nonoperating Income (Expense)

2 unchanged sentences

Interest income $ 23.6 12.1 5.6

Gain (loss) on equity securities (a)

Retirement benefit cost other than service cost ( 16.7 ) ( 38.7 ) ( 37.9 )

Foreign currency transaction gains (losses) (a)

2.4 0.4 ( 3.6 )

Foreign currency transaction gains (losses) (b)

Non-income taxes on intercompany billings (b)

( 2.3 ) ( 3.9 ) ( 4.6 )

Derivative instrument losses (c)

Retirement benefit cost other than service cost ( 38.7 ) ( 37.9 ) ( 52.7 )

Argentina turnover tax ( 1.8 ) — —

Gain (loss) on equity securities (c)

G4S indemnification asset adjustment (d)

Acquisition-related gains (losses) (e)

Penalties and interest on non-income taxes (f)

Interest on Colombia tax claim (g)

Non-income taxes on intercompany billings (h)

( 3.9 ) ( 4.6 ) ( 4.2 )

Venezuela operations (i)

Gain on lease termination (j)

Gain on a disposition of a subsidiary (k)

Interest on non-income tax credits (l)

Earn-out liability adjustment (m)

Gains related to litigation (n)

Penalties and interest on non-income taxes (e)

Gains related to litigation (f)

Earn-out liability adjustment (g)

Interest on non-income tax credits (h)

Derivative instrument losses (i)

Gain on a disposition of a subsidiary (j)

Other ( 1.5 ) 2.0 ( 4.9 )

Interest and other nonoperating income (expense) $ 3.7 ( 7.0 ) ( 37.7 )

(a) The gain is primarily related to the market value increase of an investment in MoneyGram International, Inc.

(a) Amounts primarily represent currency transaction gains and losses on contingent consideration payable related to G4S business acquisitions.

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

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

The investment was sold in 2021 and the gain was fully realized.

(b) Amounts in 2021 and 2020 primarily represent currency transaction gains and losses on contingent consideration payable related to G4S business acquisitions.

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

This adjustment was recognized outside of the measurement period for the related business operations acquired from G4S.

(e) This amount includes a gain on settlement with G4S related to business operations acquired.

The gain was partially offset by losses associated with the write off of indemnification assets related to income tax contingency reversals from businesses acquired in Brazil.

These adjustments were recognized outside of the measurement periods for the related business operations acquired.

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

(g) Related to an unfavorable court ruling in 2019 on a non-income tax claim in Colombia.

The court ruled that Brink's must pay interest accruing from 2009 to the current date.

The principal amount of the claim was less than $ 1 million and was recognized in selling, general and administrative expenses in 2019.

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

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

(i) Charges incurred for providing financial support to Brink's Venezuelan subsidiaries after the June 30, 2018 deconsolidation.

We do not expect any future funding of the Venezuela business, as long as current U.S.

sanctions remain in effect.

(j) Gain on termination of a mining lease obligation related to former coal operations.

We have no remaining mining leases.

(k) This gain is primarily related to the sale of our former French security services subsidiary in the first quarter of 2020.

(l) Represents interest on non-income tax credits related to our business operations in Brazil.

In the third quarter of 2021, our Brazil operations received a favorable court decision related to non-income taxes paid in prior years and will be able to recover the overpayments, plus interest, by reducing payments on future tax obligations.

(m) Adjustment to the liability for contingent consideration pertaining to the 2019 Balance Innovations business acquisition.

(n) Related to a favorable court ruling in litigation with a customer of our Romania business.

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

(f) Related to a favorable court ruling in litigation with a customer of our Romania business.

The court ruled that the customer must pay our subsidiary in Romania for services provided many years ago.

1 unchanged sentence

The penalties for years of non-payment are reported in interest and other nonoperating income (expense).

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

(h) Represents interest on non-income tax credits related to our business operations in Brazil.

(i) Represents loss on foreign currency forward contracts related to acquisition of business operations from G4S.

(j) This gain is primarily related to the sale of our former French security services subsidiary in the first quarter of 2020.

Note 23 - Other Commitments and Contingencies

1 unchanged sentence

Department of Justice (the “DOJ”).

The Company is fully cooperating with the investigation and responding to requests from the DOJ for documents and other information, primarily related to cross-border shipments of cash and things of value and anti-money laundering compliance.

The Company is fully cooperating with the investigation and has responded to requests from the DOJ for documents and other information, primarily related to cross-border shipments of cash and things of value and anti-money laundering compliance.

Given that the investigation is still ongoing and that no civil or criminal claims have been brought to date, the Company cannot predict the outcome of the investigation, the timing of the ultimate resolution of the matter, or reasonably estimate the possible range of loss, if any, that may result from this matter.

2 unchanged sentences

In October 2021, the FNE filed a complaint before the Chilean antitrust court alleging that Brink’s Chile (as well as competitor companies) engaged in collusion in 2017 and 2018 and requested that the court approve a fine of $ 30.5 million.

The Company is seeking access to the FNE’s investigative file and the evidence supporting the allegations against it, and intends to vigorously defend itself against the FNE’s complaint.

Based on available information to date, the Company has recorded a charge of $ 9.5 million in connection with this matter.

The Company filed its response to the complaint in November 2022, which signaled the beginning of the evidentiary phase.

The Company intends to vigorously defend itself against the FNE's complaint.

Based on available information to date, the Company recorded a charge of $ 9.5 million in the third quarter of 2021 in connection with this matter.

In 2022, we recognized an additional $ 1.4 million adjustment to our estimated loss as a result of a change in currency rates.

In addition, we are involved in various other lawsuits and claims in the ordinary course of business.

4 unchanged sentences

Note 24 - Reorganization and Restructuring

2022 Global Restructuring Plan

In the third quarter of 2022, management began a restructuring plan across our global business operations.

The actions were taken to enable growth, reduce costs and related infrastructure, and to mitigate the potential impact of external economic conditions.

As a result of actions taken, we recognized $ 22.2 million in charges in 2022, which primarily consisted of severance costs.

For the restructuring actions that were approved as of December 31, 2022, we expect to incur additional costs between $ 10 million and $ 14 million in future periods, primarily severance costs.

The following table summarizes the changes in the accrued liability for costs incurred, payments and utilization, and foreign currency exchange effects of the 2022 Global Restructuring Plan:

(In millions) Severance Costs Other Total

Balance as of January 1, 2022 $ — — —

Expense 18.8 3.4 22.2

Payments and utilization ( 8.1 ) ( 3.4 ) ( 11.5 )

Foreign currency exchange effects 0.8 — 0.8

Balance as of December 31, 2022 $ 11.5 — 11.5

Other Restructurings

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

As a result of these actions, we recognized net costs of $ 28.8 million in 2019, primarily severance costs and charges related to the modification of share-based compensations awards in 2019.

We recognized $ 66.6 million net costs in operating profit and $ 0.6 million costs in interest and other nonoperating income (expense) in 2020, primarily severance costs.

As a result of these actions, we recognized $ 66.6 million net costs in operating profit and $ 0.6 million costs in interest and other nonoperating income (expense) in 2020, primarily severance costs.

We recognized $ 43.6 million net costs in 2021, primarily severance costs.

Approximately $ 6 million of the net costs recognized in 2021 relate to restructuring plans approved by management in 2020.

The remaining costs incurred in 2021 relate to restructuring plans approved by management in 2021.

Substantially all of the costs from 2021 restructuring plans result from management initiatives to address the COVID-19 pandemic.

We recognized $ 16.6 million net costs in 2022, primarily severance costs.

The majority of the costs from 2022 restructuring plans resulted 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.

For the restructuring actions that have not yet been completed, we expect to incur additional costs between $ 1 million and $ 3 million in future periods.

2 unchanged sentences

Balance as of December 31, 2020

Expense (benefit) 66.5 6.8 73.3

Expense 37.6 6.0 43.6

Payments and utilization ( 35.3 ) ( 6.0 ) ( 41.3 )

Accrual adjustment ( 6.1 ) — ( 6.1 )

Foreign currency exchange effects ( 0.6 ) — ( 0.6 )

Balance as of December 31, 2021

$ 11.0 — 11.0

Expense (benefit) 15.5 5.4 20.9

3 unchanged sentences

Balance as of December 31, 2022

Note 25 - Subsequent Events

On January 4, 2022 , the U.S.

Treasury published in the Federal Register final foreign tax credit regulations.

Among other changes and barring any tax treaty relief, the newly enacted regulations substantially overhaul longstanding foreign tax credit regulations involving the determination of creditable foreign taxes and may reduce the amount of foreign taxes that are likely to be creditable against U.S.

income taxes under the U.S.

Internal Revenue Code.

Based upon a country-by-country analysis of the Company’s foreign withholding taxes, we expect that a portion of the Company’s post-2021 foreign withholding taxes will now be ineligible for U.S.

income tax credit treatment under the new regulations.

For foreign taxes that are now ineligible for the U.S.

income tax credits under the new regulations, we expect that the Company should be able to deduct such foreign taxes on its U.S.

income tax return.

The Company is mainly impacted by certain withholding taxes levied by Latin American countries for services and royalty payments to Brink’s U.S.

If the Company is unable to receive sufficient foreign tax credits in the U.S.

for prospective annual foreign taxes paid, including withholding taxes, the Company may begin to utilize a portion of its foreign tax credit carryforwards, which currently are subject to a valuation allowance.

Therefore, the Company is evaluating the possibility of releasing a portion of the valuation allowance on certain U.S.

deferred tax assets related to the foreign tax credit carryforward attributes during the first quarter of 2022.

We are currently unable to estimate the impact.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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-K

Item 8. Financial Statements and Supplementary Data