BRINKS CO 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA THE BRINK’S COMPANY CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2022 AND 2021 AND FOR EACH OF THE YEARS IN THE THREE-YEAR PERIOD ENDED DECEMBER 31, 2022 TABLE OF CONTENTS Page REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Report of Independent Registered Public Accounting Firm - (PCAOB ID 185 ) 60 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets 62 Consolidated Statements of Operations 63 Consolidated Statements of Comprehensive Income (Loss) 64 Consolidated Statements of Equity 65 Consolidated Statements of Cash Flows 66 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 – Summary of Significant Accounting Policies 67 Note 2 – Revenue from Contracts with Customers 72 Note 3 – Segment Information 75 Note 4 – Retirement Benefits 79 Note 5 – Income Taxes 89 Note 6 – Property and Equipment 92 Note 7 – Acquisitions and Dispositions 93 Note 8 – Goodwill and Other Intangible Assets 98 Note 9 – Prepaid Expenses and Other 99 Note 10 – Other Assets 99 Note 11 – Accumulated Other Comprehensive Income (Loss) 100 Note 12 – Fair Value of Financial Instruments 103 Note 13 – Accrued Liabilities 106 Note 14 – Other Liabilities 106 Note 15 – Debt 107 Note 16 – Accounts Receivable and Credit Losses 110 Note 17 – Leases 111 Note 18 – Share-Based Compensation Plans 113 Note 19 – Capital Stock 118 Note 20 – Supplemental Cash Flow Information 120 Note 21 – Other Operating Income (Expense) 122 Note 22 – Interest and Other Nonoperating Income (Expense) 123 Note 23 – Other Commitments and Contingencies 124 Note 24 – Reorganization and Restructuring 124 59 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, 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, 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 These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. 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 audits 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 consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated 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 consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. 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 As discussed in Note 8 to the consolidated financial statements, the goodwill balance as of December 31, 2022 was $1,450.9 million, a portion of which related to the Europe reporting unit. The Company performs goodwill impairment testing on an annual basis and whenever events or changes in circumstances indicate that it is more likely than not that an impairment may have occurred. The impairment test is performed by comparing the estimated fair value of a reporting unit to the carrying value of the reporting unit. The Company estimates the fair value using a weighting of two valuation methodologies, with greater weight placed on the income approach. We identified the evaluation of the Company’s assessment of goodwill for impairment for the Europe reporting unit as a critical audit matter. The revenue growth rates, forecasted operating margin and the discount rate used to estimate the fair value of the Europe reporting unit in the income approach are inherently uncertain and required management to make significant estimates and judgments related to the future results of operations. In addition, individuals with specialized skills and knowledge were required to assess the discount rate used to estimate the fair value of the Europe reporting unit in the income approach. 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 assessment of goodwill for impairment, including controls related to the: • determination of the revenue growth rates and forecasted operating margin • selection of the discount rate. We performed sensitivity analyses over the revenue growth rate and forecasted operating margin to assess their impact on the Company’s determination that the fair value of the Europe reporting unit exceeded its carrying value. We evaluated the forecasted revenue growth rates 60 and operating margin used to value the Europe reporting unit by comparing them to budgets, supporting documentation, and to historical growth rates. We compared the Company’s historical revenue and operating margin forecasts for the Europe reporting unit to actual results to assess the Company’s ability to accurately forecast. In addition, we involved valuation professionals with specialized skills and knowledge, who assisted in: • evaluating the discount rate used in the fair value model in the income approach by comparing it against a discount rate that was independently developed using publicly available market data for comparable entities • 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. /s/ KPMG LLP We have served as the Company’s auditor since 2020. Richmond, Virginia March 1, 2023 61 THE BRINK’S COMPANY and subsidiaries Consolidated Balance Sheets December 31, (In millions, except for per share amounts) 2022 2021 ASSETS Current assets: Cash and cash equivalents $ 972.0 710.3 Restricted cash 438.5 376.4 Accounts receivable (net of allowance: 2022 - $ 38.3 ; 2021 - $ 16.9 ) 862.2 701.8 Prepaid expenses and other 324.7 211.0 Total current assets 2,597.4 1,999.5 Right-of-use assets, net 314.5 299.1 Property and equipment, net 935.3 865.6 Goodwill 1,450.9 1,411.7 Other intangibles 535.5 491.2 Deferred income taxes 246.2 239.4 Other 286.2 260.2 Total assets $ 6,366.0 5,566.7 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings $ 47.2 9.8 Current maturities of long-term debt 82.4 115.2 Accounts payable 296.5 211.2 Accrued liabilities 1,019.4 877.3 Restricted cash held for customers 229.3 215.5 Total current liabilities 1,674.8 1,429.0 Long-term debt 3,273.2 2,841.7 Accrued pension costs 131.0 219.3 Retirement benefits other than pensions 174.5 322.2 Lease liabilities 249.9 241.8 Deferred income taxes 67.8 49.2 Other 224.6 210.9 Total liabilities 5,795.8 5,314.1 Commitments and contingent liabilities (notes 4, 5, 15, 17, 23 and 24) Equity: The Brink’s Company (“Brink’s”) shareholders: Common stock, par value $ 1 per share: Shares authorized: 100.0 Shares issued and outstanding: 2022 - 46.3 ; 2021 - 47.4 46.3 47.4 Capital in excess of par value 684.1 670.6 Retained earnings 417.2 312.9 Accumulated other comprehensive income (loss): Benefit plan adjustments ( 290.7 ) ( 474.0 ) Foreign currency translation ( 433.8 ) ( 425.7 ) Unrealized losses on available-for-sale securities ( 0.6 ) ( 0.1 ) Gains (losses) on cash flow hedges 24.6 ( 8.1 ) Accumulated other comprehensive loss ( 700.5 ) ( 907.9 ) Brink’s shareholders 447.1 123.0 Noncontrolling interests 123.1 129.6 Total equity 570.2 252.6 Total liabilities and equity $ 6,366.0 5,566.7 See accompanying notes to consolidated financial statements. 62 THE BRINK’S COMPANY and subsidiaries Consolidated Statements of Operations Years Ended December 31, (In millions, except for per share amounts) 2022 2021 2020 Revenues $ 4,535.5 4,200.2 3,690.9 Costs and expenses: Cost of revenues 3,461.9 3,235.8 2,877.3 Selling, general and administrative expenses 687.0 629.7 584.5 Total costs and expenses 4,148.9 3,865.5 3,461.8 Other operating income (expense) ( 25.3 ) 20.0 ( 15.6 ) Operating profit 361.3 354.7 213.5 Interest expense ( 138.8 ) ( 112.2 ) ( 96.5 ) Interest and other nonoperating income (expense) 3.7 ( 7.0 ) ( 37.7 ) Income from continuing operations before tax 226.2 235.5 79.3 Provision for income taxes 41.4 120.3 56.6 Income from continuing operations 184.8 115.2 22.7 Income (loss) from discontinued operations, net of tax ( 2.9 ) 2.1 ( 0.8 ) Net income 181.9 117.3 21.9 Less net income attributable to noncontrolling interests 11.3 12.1 5.9 Net income attributable to Brink’s $ 170.6 105.2 16.0 Amounts attributable to Brink’s: Continuing operations $ 173.5 103.1 16.8 Discontinued operations ( 2.9 ) 2.1 ( 0.8 ) Net income attributable to Brink’s $ 170.6 105.2 16.0 Earnings (loss) per share attributable to Brink’s common shareholders (a) : Basic: Continuing operations $ 3.67 2.08 0.33 Discontinued operations ( 0.06 ) 0.04 ( 0.02 ) Net income 3.61 2.12 0.32 Diluted: Continuing operations $ 3.63 2.06 0.33 Discontinued operations ( 0.06 ) 0.04 ( 0.02 ) Net income 3.57 2.10 0.31 Weighted-average shares Basic 47.3 49.5 50.4 Diluted 47.8 50.1 50.8 (a) Amounts may not add due to rounding. See accompanying notes to consolidated financial statements. 63 THE BRINK’S COMPANY and subsidiaries Consolidated Statements of Comprehensive Income (Loss) Years Ended December 31, (In millions) 2022 2021 2020 Net income $ 181.9 117.3 21.9 Benefit plan adjustments: Benefit plan actuarial gains (losses) 177.6 189.4 ( 37.0 ) Benefit plan prior service costs 61.7 ( 4.3 ) ( 5.3 ) Deferred profit sharing ( 0.1 ) ( 0.4 ) 0.7 Total benefit plan adjustments 239.2 184.7 ( 41.6 ) Foreign currency translation adjustments ( 19.0 ) ( 58.9 ) 24.2 Unrealized net losses on available-for-sale securities ( 0.9 ) ( 0.1 ) — Gains (losses) on cash flow hedges 37.6 19.1 ( 11.2 ) Other comprehensive income (loss) before tax 256.9 144.8 ( 28.6 ) Provision (benefit) for income taxes 55.9 55.3 ( 12.4 ) Other comprehensive income (loss) 201.0 89.5 ( 16.2 ) Comprehensive income 382.9 206.8 5.7 Less comprehensive income attributable to noncontrolling interests 5.0 9.5 10.7 Comprehensive income (loss) attributable to Brink’s $ 377.9 197.3 ( 5.0 ) See accompanying notes to consolidated financial statements. 64 THE BRINK’S COMPANY and subsidiaries Consolidated Statements of Equity Years Ended December 31, 2022, 2021 and 2020 (In millions) Shares Common Stock Capital in Excess of Par Value Retained Earnings AOCI* Noncontrolling Interests Total Balance as of December 31, 2019 50.1 $ 50.1 663.3 457.4 ( 979.0 ) 15.8 207.6 Cumulative effect of change in accounting principle (a) — — — ( 1.7 ) — — ( 1.7 ) Net income — — — 16.0 — 5.9 21.9 Other comprehensive income (loss) — — — — ( 21.0 ) 4.8 ( 16.2 ) Shares repurchased ( 1.1 ) ( 1.1 ) ( 14.9 ) ( 34.0 ) — — ( 50.0 ) Dividends to: Brink’s common shareholders ($ 0.60 per share) — — — ( 30.1 ) — — ( 30.1 ) Noncontrolling interests — — — — — ( 16.8 ) ( 16.8 ) Share-based compensation: Stock options and awards: Compensation expense — — 31.3 — — — 31.3 Other share-based benefit transactions 0.5 0.5 ( 7.9 ) ( 0.1 ) — — ( 7.5 ) 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 Cumulative effect of change in accounting principle (b) — — — 0.5 — — 0.5 Net income — — — 105.2 — 12.1 117.3 Other comprehensive income (loss) — — — — 92.1 ( 2.6 ) 89.5 Shares repurchased ( 2.4 ) ( 2.4 ) ( 34.6 ) ( 163.0 ) — — ( 200.0 ) Dividends to: Brink’s common shareholders ($ 0.75 per share) — — — ( 37.2 ) — — ( 37.2 ) Noncontrolling interests — — — — — ( 5.1 ) ( 5.1 ) Share-based compensation: Stock options and awards: 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 Net income — — — 170.6 — 11.3 181.9 Other comprehensive income (loss) — — — — 207.3 ( 6.3 ) 201.0 Shares repurchased ( 1.5 ) ( 1.5 ) ( 22.1 ) ( 28.6 ) — — ( 52.2 ) Dividends to: Brink’s common shareholders ($ 0.80 per share) — — — ( 37.6 ) — — ( 37.6 ) Noncontrolling interests — — — — — ( 7.1 ) ( 7.1 ) Share-based compensation: Stock options and awards: Compensation expense — — 48.6 — — — 48.6 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 Capital contributions from noncontrolling interest — — — — — 0.1 0.1 Balance as of December 31, 2022 46.3 $ 46.3 684.1 417.2 ( 700.5 ) 123.1 570.2 (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 . We recognized a cumulative effect adjustment to January 1, 2020 retained earnings as a result of adopting this standard. 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 . We recognized a cumulative effect adjustment to January 1, 2021 retained earnings as a result of adopting this standard. 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) See accompanying notes to consolidated financial statements. 65 THE BRINK’S COMPANY and subsidiaries Consolidated Statements of Cash Flows Years Ended December 31, (In millions) 2022 2021 2020 Cash flows from operating activities: Net income $ 181.9 117.3 21.9 Adjustments to reconcile net income to net cash provided by operating activities: (Income) loss from discontinued operations, net of tax 2.9 ( 2.1 ) 0.8 Depreciation and amortization 245.8 239.5 206.8 Share-based compensation expense 48.6 33.1 31.3 Deferred income taxes ( 62.3 ) 14.6 ( 28.2 ) (Gain) loss on sale of property, equipment and marketable securities 0.7 ( 17.7 ) ( 11.6 ) Gain on business dispositions — — ( 4.1 ) Impairment losses 9.0 9.5 11.6 Retirement benefit funding (more) less than expense: Pension ( 3.7 ) 12.4 9.5 Other than pension 7.9 14.2 14.3 Remeasurement losses due to Argentina currency devaluation 37.6 9.0 7.7 Other operating 23.6 ( 5.8 ) 15.6 Changes in operating assets and liabilities, net of effects of acquisitions: Accounts receivable and income taxes receivable ( 180.9 ) ( 21.2 ) 45.1 Accounts payable, income taxes payable and accrued liabilities 139.2 45.1 ( 114.5 ) Restricted cash held for customers 50.0 60.2 116.3 Customer obligations 50.0 15.7 ( 6.5 ) Prepaid and other current assets ( 56.7 ) ( 16.8 ) ( 24.5 ) Other ( 13.7 ) ( 29.0 ) 26.2 Net cash provided by operating activities 479.9 478.0 317.7 Cash flows from investing activities: Capital expenditures ( 182.6 ) ( 167.9 ) ( 118.5 ) Acquisitions, net of cash acquired ( 173.9 ) ( 313.2 ) ( 439.7 ) Dispositions, net of cash disposed — — ( 2.6 ) Marketable securities: Purchases ( 30.3 ) ( 15.6 ) ( 2.9 ) Sales 11.7 35.1 2.0 Cash proceeds from sale of property, equipment and investments 5.7 7.7 5.3 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 ) Net cash used by investing activities ( 331.2 ) ( 454.7 ) ( 565.4 ) Cash flows from financing activities: Borrowings (repayments) of debt: Short-term borrowings 37.7 ( 4.3 ) ( 3.9 ) Cash supply chain customer debt — — ( 10.5 ) Long-term revolving credit facilities: Borrowings 7,058.7 3,385.5 897.8 Repayments ( 6,832.7 ) ( 2,836.8 ) ( 1,008.9 ) Other long-term debt: Borrowings 189.9 7.7 1,022.6 Repayments ( 87.0 ) ( 140.7 ) ( 98.5 ) 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 ) Repurchase shares of Brink's common stock ( 52.2 ) ( 200.0 ) ( 50.0 ) Dividends to: Shareholders of Brink’s ( 37.6 ) ( 37.2 ) ( 30.1 ) Noncontrolling interests in subsidiaries ( 7.1 ) ( 5.1 ) ( 16.8 ) Proceeds from exercise of stock options — 2.3 — Tax withholdings associated with share-based compensation ( 12.2 ) ( 5.5 ) ( 10.3 ) 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 323.8 143.8 473.9 Balance at beginning of period 1,086.7 942.9 469.0 Balance at end of period $ 1,410.5 1,086.7 942.9 See accompanying notes to consolidated financial statements. 66 THE BRINK’S COMPANY and subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies 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 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. Consolidation The consolidated financial statements include our controlled subsidiaries. Control is determined based on ownership rights or, when applicable, based on whether we are considered to be the primary beneficiary of a variable interest entity. See "Venezuela" section below for further information. For controlled subsidiaries that are not wholly-owned, the noncontrolling interests are included in net income and in total equity. Investments in businesses that we do not control, but for which we have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method and our proportionate share of income or loss is recorded in other operating income (expense). Investments in businesses for which we do not have the ability to exercise significant influence over operating and financial policies are accounted for at fair value, if readily determinable, with changes in fair value recognized in net income. For equity investments that do not have a readily determinable fair value, we measure these investments at cost minus impairment, if any, plus or minus changes from observable price changes. All intercompany accounts and transactions have been eliminated in consolidation. Revenue Recognition 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. Taxes collected from customers and remitted to governmental authorities are not included in revenues in the consolidated statements of operations. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and investments with original maturities of three months or less. Cash and cash equivalents include amounts held by certain of our secure cash management services operations for customers for which, under local regulations, the title transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the management of our liquidity and capital resources. We record a liability for the amounts owed to customers (see Note 13). Restricted Cash Cash that is held for a specific purpose and is not available for immediate or general business use due to external restrictions is classified in our consolidated balance sheets as restricted cash. In Malaysia, we offer ATM replenishment services to certain of our financial institution customers. Providing this service requires our Malaysia subsidiary to take temporary title to the cash received in advance of ATM replenishment. 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 France, we offer services to certain of our customers where we manage some or all of their cash supply chains. In connection with this offering, we take temporary title to certain customers' cash, which is included as restricted cash in our financial statements due to customer agreement or regulation. In addition, in accordance with a revolving credit facility, we are required to maintain a restricted cash reserve and, due to this contractual restriction, we have classified these amounts as restricted cash (see Note 20). Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest. We assess the collectability of our receivables on a pool basis, which we aggregate by geographical location. We determine historical loss rates for each pool and these historical loss rates represent the primary assumption used in estimating the allowance for doubtful accounts. We monitor the aging of accounts receivables by country along with any significant economic events to identify any current or expected trends and risks within a pool that could impact the collectability of receivables that were not contemplated or relevant during a previous period. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. See "Internal Loss" and "New Accounting Standards" sections below as well as Note 16 for further information. Right-of-Use Assets 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 Note 17 for further information. Property and Equipment Property and equipment are recorded at cost. Depreciation is calculated principally on the straight-line method based on the estimated useful lives of individual assets or classes of assets. 67 Leased property and equipment meeting financing lease criteria are capitalized at the lower of the present value of the related lease payments or the fair value of the leased asset at the inception of the lease. Amortization is calculated on the straight-line method based on the lease term. See Note 17 for further information. Leasehold improvements are recorded at cost. Amortization is calculated principally on the straight-line method over the lesser of the estimated useful life of the leasehold improvement or the lease term. Renewal periods are included in the lease term when the renewal is determined to be reasonably assured. Part of the costs related to the development or purchase of internal-use software is capitalized and amortized over the estimated useful life of the software. Costs that are capitalized include external direct costs of materials and services to develop or obtain the software, and internal costs, including compensation and employee benefits for employees directly associated with a software development project. Estimated Useful Lives Years Buildings 16 to 25 Building leasehold improvements 3 to 10 Vehicles 3 to 10 Capitalized software 3 to 5 Other machinery and equipment 3 to 10 Expenditures for routine maintenance and repairs on property and equipment are charged to expense. Major renewals, betterments and modifications are capitalized and depreciated over the lesser of the remaining life of the asset or, if applicable, the lease term. Goodwill and Other Intangible Assets Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. Intangible assets arising from business acquisitions include customer lists, customer relationships, developed technology, covenants not to compete, trademarks and other identifiable intangibles. At December 31, 2022, finite-lived intangible assets have remaining useful lives ranging from 1 to 14 years and are amortized based on the pattern in which the economic benefits are used or on a straight-line basis. Impairment of Goodwill and Long-Lived Assets Goodwill is not amortized but is tested for impairment at least annually, as of October 1, and whenever events or circumstances in interim periods indicate that it is more-likely-than-not that an impairment may have occurred. We perform the test of goodwill impairment at the reporting unit level, which is one level below an operating segment. Goodwill is assigned to one or more reporting units at the date of acquisition. During the fourth quarter of 2020, we implemented changes to our organization and management structure. Based on our preliminary evaluation for year-end 2020 reporting, we changed our reporting units from eight reporting units to nine reporting units. During the first quarter of 2021, we finalized our evaluation and changed from nine reporting units to four reporting units, which are equal to our operating segments: • North America • Latin America • Europe • Rest of World We were not required to reallocate goodwill after the reporting unit change as each of the previously identified nine reporting units is completely included in one of the four new reporting units. We performed a goodwill impairment test on these reporting units as of October 1, 2022 and elected to forego the optional qualitative assessment and performed a quantitative goodwill impairment assessment instead. We estimated the fair value of each reporting unit using a weighting of two valuation methodologies: the Income Approach and the Public Company Market Multiple Method, with greatest weight placed on the Income Approach. The resulting reporting unit fair values were compared to each reporting unit's carrying value. As a result of the evaluation, we concluded that goodwill was not impaired, and the fair value of each reporting unit exceeded its carrying value for all reporting units. We completed these goodwill impairment tests, as well as the tests in the previous two years, with no impairment charges required. Indefinite-lived intangibles are also tested for impairment at least annually by comparing their carrying values to their estimated fair values. We have had no significant impairments of indefinite-lived intangibles in the last three years. 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. See Note 8 for further information. 68 Retirement Benefit Plans We account for retirement benefit obligations under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 715, Compensation – Retirement Benefits . For U.S. and certain non-U.S. retirement plans, we derive the discount rates used to measure the present value of benefit obligations using the cash flow matching method. Under this method, we compare the plan’s projected payment obligations by year with the corresponding yields on a Mercer yield curve. Each year’s projected cash flows are then discounted back to their present value at the measurement date and an overall discount rate is determined. The overall discount rate is then rounded to the nearest tenth of a percentage point. We used Mercer’s Above-Mean Curve to determine the discount rates for the year-end benefit obligations and retirement cost of our U.S. retirement plans. We use a local or regional version of the Mercer yield curve in the majority of our non-U.S. locations. In non-U.S. locations where the cash flow matching method is not possible, rates of local high-quality long-term government bonds are used to select the discount rate. We select the expected long-term rate of return assumption for our U.S. pension plan and retiree medical plans using advice from our investment advisor. The selected rate considers plan asset allocation targets, expected overall investment manager performance and long-term historical average compounded rates of return. Benefit plan actuarial gains and losses are recognized in other comprehensive income (loss). Accumulated net benefit plan actuarial gains and losses that exceed 10% of the greater of a plan’s benefit obligation or plan assets at the beginning of the year are amortized into earnings from other comprehensive income (loss) on a straight-line basis. The amortization period for pension plans is the average remaining service period of employees expected to receive benefits under the plans. The amortization period for other retirement plans is primarily the average remaining life expectancy of inactive participants. Income Taxes Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events that have been, or will be, reported in different years for financial statement purposes than tax purposes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which these items are expected to reverse. We recognize tax benefits related to uncertain tax positions if we believe it is more-likely-than-not the benefit will be realized. We review our deferred tax assets to determine if it is more-likely-than-not that they will be realized. If we determine it is not more-likely-than-not that a deferred tax asset will be realized, we record a valuation allowance to reverse the previously recognized tax benefit. See Note 5 for further information. Foreign Currency Translation Our consolidated financial statements are reported in U.S. dollars. Our foreign subsidiaries maintain their records primarily in the currency of the country in which they operate. The method of translating local currency financial information into U.S. dollars depends on whether the economy in which our foreign subsidiary operates has been designated as highly inflationary or not. Economies with a three-year cumulative inflation rate of more than 100% are considered highly inflationary. Assets and liabilities of foreign subsidiaries in non-highly inflationary economies are translated into U.S. dollars using rates of exchange at the balance sheet date. Translation adjustments are recorded in other comprehensive income (loss). Revenues and expenses are translated at rates of exchange in effect during the year. Transaction gains and losses are recorded in net income. Foreign subsidiaries that operate in highly inflationary countries use the U.S. dollar as their functional currency. Local currency monetary assets and liabilities are remeasured into U.S. dollars using rates of exchange as of each balance sheet date, with remeasurement adjustments and other transaction gains and losses recognized in earnings. Other than nonmonetary equity and available for sale debt securities, nonmonetary assets and liabilities do not fluctuate with changes in local currency exchange rates to the dollar. 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 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. Revenues and expenses are translated at rates of exchange in effect during the year. See "Venezuela" and "Argentina" sections below for further information. Argentina We operate in Argentina through wholly owned subsidiaries and a smaller controlled subsidiary (together "Brink's Argentina"). Revenues from Brink's Argentina represented approximately 4 % of our consolidated revenues for the year ended December 31, 2022 and 4 % and 5 % of our consolidated revenues for the years ended December 31, 2021 and 2020, respectively. The operating environment in Argentina continues to present business challenges, including ongoing devaluation of the Argentine peso and significant inflation. For the year ended December 31, 2020, the Argentine peso declined by approximately 29 % (from 59.9 to 84.0 pesos to the U.S. dollar). For the year ended December 31, 2021, the Argentine peso declined by approximately 19 % (from 84.0 to 103.1 pesos to the U.S. dollar). For the year ended December 31, 2022, the Argentine peso declined approximately 42 % (from 103.1 to 178.6 pesos to the U.S. dollar). Beginning July 1, 2018, we designated Argentina's economy as highly inflationary for accounting purposes. 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 69 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. In 2021 and in 2020, we recognized $ 9.0 million and $ 7.7 million pretax remeasurement losses, respectively. 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). During September 2019, the Argentine government announced currency controls on both companies and individuals. The Argentine central bank issued details as to how the exchange control procedures would operate in practice. Under these procedures, central bank approval is required for many transactions, including dividend repatriation abroad. During the third quarter of 2020, we elected to use other market mechanisms to convert Argentine pesos into U.S. dollars. 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 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 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. We continue to control our Argentina business for purposes of consolidation of our financial statements and continue to monitor the situation in Argentina. Venezuela Our Venezuelan operations offer transportation and route-based logistics management services for cash and valuables throughout Venezuela. Currency exchange regulations, combined with other government regulations, such as price controls and strict labor laws, significantly limit our ability to make and execute operational decisions at our Venezuelan subsidiaries. As a result of the conditions, we do not meet the accounting criteria for control over our Venezuelan operations and, as a result, we began reporting the results of our investment in our Venezuelan subsidiaries using the cost method of accounting, the basis of which approximates zero. Prior to the imposition of the U.S. government sanctions, we provided immaterial amounts of financial support to our Venezuela operations. We continue to monitor the situation in Venezuela, including the imposition of sanctions by the U.S. government targeting Venezuela. Internal loss A former non-management employee in our U.S. global services operations embezzled funds from Brink's in prior years. Except for a small deductible amount, the amount of the internal loss related to the embezzlement was covered by our insurance. In an effort to cover up the embezzlement, the former employee intentionally misstated the underlying accounts receivable subledger data. In 2020, we incurred $ 0.3 million in costs (primarily third party expenses) to reconstruct the accounts receivables subledger. 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. We also recognized $ 1.3 million of legal charges in 2021 as we attempted to collect additional insurance recoveries related to these receivable losses. 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. 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. Concentration of Credit Risks 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. Cash and cash equivalents are held by major financial institutions. Use of Estimates In accordance with U.S. generally accepted accounting principles (“GAAP”), we have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements. Actual results could differ materially from those estimates. 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. 70 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. We have various financial instruments included in our financial statements. Financial instruments are carried in our financial statements at either cost or fair value. We estimate fair value of assets using the following hierarchy using the highest level possible: Level 1: Quoted prices for identical assets or liabilities in active markets. Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are directly or indirectly observable, or inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. Level 3: Unobservable inputs that reflect estimates and assumptions. New Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which changes the way entities recognize impairment of many financial assets. This new guidance requires immediate recognition of estimated credit losses expected to occur over the life of the asset and incorporates estimated, forward-looking data when measuring lifetime Expected Credit Losses (ECL). The standard was designed to provide greater transparency and understanding of credit risk by requiring enhanced financial statement disclosures which fall into three general categories: ECL estimate methodology and assumptions, quantitative information and metrics, and policy and process explanations. We adopted the standard using the modified retrospective transition method. Results for the reporting period beginning January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. We recognized a cumulative-effect adjustment decreasing retained earnings by $ 1.7 million on January 1, 2020. The adoption of the standard also resulted in expanded disclosures related to credit losses (see Note 16). 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. The amendments in this ASU eliminate some disclosures that are no longer considered cost beneficial, modify/clarify the specific requirements of certain disclosures and add disclosure requirements for Level 3 fair value measurements. We adopted ASU 2018-13 effective January 1, 2020 and the standard did not have a significant impact on our financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod tax allocations and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 was effective for us on January 1, 2021. We recognized a cumulative-effect adjustment increasing retained earnings by $ 0.5 million on January 1, 2021. 71 Note 2 - Revenue from Contracts with Customers Performance Obligations 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. Because the customers simultaneously receive and consume the benefits from our services, these performance obligations are deemed to be satisfied over time. We use an output method, units of service provided, to recognize revenue because that is the best method to represent the transfer of our services to the customer at the agreed upon rate for each action. Although not as significant as our service offerings, we also sell goods to customers from time to time, such as safe devices. In those transactions, we satisfy our performance obligation at a point in time. We recognize revenue when the goods are delivered to the customer as that is the point in time that best represents when control has transferred to the customer. Our contracts with customers describe the services we can provide along with the fees for each action to provide the service. We typically send invoices to customers for all of the services we have provided within a monthly period and payments are generally due within 30 to 60 days of the invoice date. Although our customer contracts specify the fees for each action to provide service, the majority of the services stated in our contracts do not have a defined quantity over the contract term. Accordingly, the transaction price is considered variable as there is an unknown volume of services that will be rendered over the course of the contract. We recognize revenue for these services in the period in which they are provided to the customer based on the contractual rate at which we have the right to invoice the customer for each action. Some of our contracts with customers contain clauses that define the level of service that the customer will receive. The service level agreements (“SLA”) within those contracts contain specific calculations to determine whether the appropriate level of service has been met within a specific period, which is typically a month. We estimate SLA penalties and recognize the amounts as a reduction to revenue. Taxes collected from customers and remitted to governmental authorities are not included in revenues in the consolidated statements of operations. 72 Revenue Disaggregated by Reportable Segment and Type of Service (In millions) Cash and Valuables Management DRS and AMS Total Twelve months ended December 31, 2022 Reportable Segments: North America $ 1,207.2 376.9 1,584.1 Latin America 1,090.3 120.3 1,210.6 Europe 728.1 203.3 931.4 Rest of World 766.5 42.9 809.4 Total reportable segments $ 3,792.1 743.4 4,535.5 Twelve months ended December 31, 2021 Reportable Segments: North America $ 1,122.3 284.8 1,407.1 Latin America 1,030.9 95.1 1,126.0 Europe 802.6 114.7 917.3 Rest of World 714.0 35.8 749.8 Total reportable segments $ 3,669.8 530.4 4,200.2 Twelve months ended December 31, 2020 Reportable Segments: North America $ 1,077.9 183.5 1,261.4 Latin America 994.9 77.0 1,071.9 Europe 678.1 75.7 753.8 Rest of World 581.1 22.7 603.8 Total reportable segments 3,332.0 358.9 3,690.9 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 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. Contract Balances Contract Assets Although payment terms and conditions can vary, for the majority of our customer contracts, we invoice for all of the services provided to the customer within a monthly period. For certain customer contracts, the timing of our performance may precede our right to invoice the customer for the total transaction price. For example, Brink's affiliates in certain countries, primarily in Latin America, negotiate annual price adjustments with certain customers and, once the price increases are finalized, the pricing changes are made retroactive to services provided in earlier periods. These retroactive pricing adjustments are estimated and recognized as revenue with a corresponding contract asset in the same period in which the related services are performed. As the estimate of the ultimate transaction price changes, we recognize a cumulative catch-up adjustment for the change in estimate. In our Rest of World segment, certain Brink's affiliates provide services to specific customers and, per contract, a portion of the consideration is retained by the customers until the contract is completed. The retention amounts are reported as contract assets until we have the right to bill the customer for these amounts. Contract assets expected to be collected within one year ($ 4.2 million at December 31, 2022) are included in prepaid expenses and other on the consolidated balance sheet. Amounts not expected to be billed and collected within one year ($ 8.4 million at December 31, 2022) are reported in other noncurrent assets on the consolidated balance sheet. Contract Liabilities For other customer contracts, we may obtain the right to payment or receive customer payments prior to performing the related services under the contract. When the right to customer payments or receipt of payments precedes our performance, we recognize a contract liability. 73 The opening and closing balances of receivables, contract assets and contract liabilities related to contracts with customers are as follows: (In millions) Receivables Contract Assets Contract Liabilities Opening (January 1, 2022) $ 701.8 6.3 17.9 Closing (December 31, 2022) 862.2 12.6 17.0 Increase (decrease) $ 160.4 6.3 ( 0.9 ) The amount of revenue recognized in 2022 that was included in the January 1, 2022 contract liability balance was $ 14.7 million. This revenue consists of services provided to customers who had prepaid for those services prior to the current year. Revenue recognized in the twelve months ended December 31, 2022 from performance obligations satisfied in the prior year was not significant. This revenue is a result of changes in the transaction price of our contracts with customers. Contract Costs Sales commissions directly related to obtaining new contracts with customers are capitalized when incurred and are then amortized to expense ratably over the term of the contracts. At December 31, 2022, the net capitalized costs to obtain contracts was included in other assets on the consolidated balance sheet. The capitalized amounts at December 31, 2022 and December 31, 2021 were $ 3.7 million and $ 2.0 million, respectively. The amortization expense in 2022 and 2021 was $ 1.3 million and $ 0.7 million, respectfully. Practical Expedients For the majority of our contracts with customers, we invoice a fixed amount for each unit of service we have provided. These contracts provide us with the right to invoice for an amount or rate that corresponds to the value we have delivered to our customers. The volume of services that will be provided to customers over the term is not known at inception of these contracts. Therefore, while the rate per unit of service is known, the transaction price itself is variable. For this reason, we recognize revenue from these contracts equal to the amount for which we have the contractual right to invoice the customers. Because we are not required to estimate variable consideration related to the transaction price in order to recognize revenue, we are also not required to estimate the variable consideration to provide certain disclosures. As a result, we have elected to use the optional exemption related to the disclosure of transaction prices, amounts allocated to remaining performance obligations and the future periods in which revenue will be recognized, sometimes referred to as backlog. We have also elected to use the practical expedient for financing components related to our contract liabilities. We do not recognize interest expense on contracts for which the period between our receipt of customer payments and our service to the customer is one year or less. 74 Note 3 - Segment Information We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. Our CODM is our President and Chief Executive Officer. Our CODM evaluates performance and allocates resources to each operating segment based on a profit or loss measure which, at the reportable segment level, excludes the following: • Corporate expenses - includes corporate headquarters costs, regional management costs, currency transaction gains and losses, adjustments to reconcile segment accounting policies to U.S. GAAP, and costs related to global initiatives • Other items not allocated to segments - certain significant items such as reorganization and restructuring actions that are evaluated on an individual basis by management and are not considered part of the ongoing activities of the business are excluded from segment results. We also exclude certain costs, gains and losses related to acquisitions and dispositions of assets and of businesses. Brink's Argentina is consolidated using our accounting policy for subsidiaries operating in highly inflationary economies. We have excluded from our segment results the impact of highly inflationary accounting in Argentina, including currency remeasurement losses. 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 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. We manage our business in the following four segments: • North America – operations in the U.S. and Canada, including the Brink’s Global Services ("BGS") line of business, • Latin America – operations in Latin American countries where we have an ownership interest, including the BGS line of business. This segment includes operations in Mexico, which was previously reported in the North America segment, • Europe – total operations in European countries that primarily provide services outside of the BGS line of business, and • Rest of World – operations in the Middle East, Africa and Asia. This segment also includes total operations in European countries that primarily provide BGS services and BGS activity in Latin American countries where we do not have an ownership interest. Prior to 2021, all business units within the operating segments followed an internal Brink's accounting policy for determining an allowance for doubtful accounts and recognizing bad debt expense. The allowance amounts reported by the operating segments were then reconciled to the required U.S. GAAP estimated consolidated allowance amount, and any differences were reported as part of Corporate expenses. During the first quarter of 2021, we changed the allowance calculation method of the U.S. business within the North America operating segment, in order to more closely align it with U.S. GAAP requirements. Differences between U.S. GAAP and existing internal policy were not significant for all other business units within the operating segments, and so no other changes were made, and reconciling amounts for those units will continue to be reported as part of Corporate expense. For the North America segment, the impact of this change in reporting was to reduce the segment allowance and to increase segment operating profit by $ 12.3 million in the first quarter of 2021. There was no net impact to consolidated results, as a corresponding offsetting adjustment occurred on Corporate expenses. 75 Revenues Operating Profit Years Ended December 31, Years Ended December 31, (In millions) 2022 2021 2020 2022 2021 2020 Reportable Segments: North America $ 1,584.1 1,407.1 1,261.4 $ 159.1 148.4 91.7 Latin America 1,210.6 1,126.0 1,071.9 277.7 257.3 233.6 Europe 931.4 917.3 753.8 98.4 89.8 51.2 Rest of World 809.4 749.8 603.8 163.9 131.5 117.1 Total reportable segments 4,535.5 4,200.2 3,690.9 699.1 627.0 493.6 Reconciling Items: Corporate expenses: General, administrative and other expenses — — — ( 161.5 ) ( 141.7 ) ( 116.3 ) Foreign currency transaction gains (losses) — — — 10.9 2.7 ( 6.5 ) Reconciliation of segment policies to GAAP (a) — — — 1.8 ( 17.5 ) 10.5 Other items not allocated to segments: Reorganization and Restructuring (b) — — — ( 38.8 ) ( 43.6 ) ( 66.6 ) Acquisitions and dispositions (c) — — — ( 86.6 ) ( 71.9 ) ( 83.1 ) Argentina highly inflationary impact (d) — — — ( 41.7 ) ( 11.9 ) ( 10.7 ) Change in allowance estimate (e) — — — ( 15.6 ) — — Ship loss matter (f) — — — ( 4.9 ) — — 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) 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. GAAP. (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. (c) Certain acquisition-related and disposition-related items that are not considered part of the ongoing activities of the business and are special in nature are consistently excluded from segment results. These items include amortization expense for acquisition-related intangible assets and integration, transaction and restructuring costs related to business acquisitions. (d) 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) 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. 76 Years Ended December 31, (In millions) 2022 2021 2020 Capital Expenditures by Reportable Segment North America $ 41.4 40.4 27.4 Latin America 50.1 45.0 35.1 Europe 50.5 50.6 33.4 Rest of World 34.4 26.0 16.6 Total reportable segments 176.4 162.0 112.5 Corporate items 6.2 5.9 6.0 Total $ 182.6 167.9 118.5 Depreciation and Amortization by Reportable Segment Depreciation and amortization of property and equipment: North America $ 69.1 68.7 62.3 Latin America 49.1 46.2 44.0 Europe 39.6 41.4 32.2 Rest of World 23.6 23.2 20.0 Total reportable segments 181.4 179.5 158.5 Corporate items 8.4 9.7 9.1 Argentina highly inflationary impact 2.9 2.2 1.8 Acquisitions and dispositions 0.1 0.1 1.0 Reorganization and Restructuring 1.0 0.3 1.3 Depreciation and amortization of property and equipment 193.8 191.8 171.7 Amortization of intangible assets (a) 52.0 47.7 35.1 Total $ 245.8 239.5 206.8 (a) Amortization of acquisition-related intangible assets has been excluded from reportable segment amounts. December 31, (In millions) 2022 2021 Assets held by Reportable Segment North America $ 1,949.9 1,674.2 Latin America 1,180.6 1,018.9 Europe 1,789.9 1,437.8 Rest of World 1,064.8 1,070.6 Total reportable segments 5,985.2 5,201.5 Corporate items 380.8 365.2 Total $ 6,366.0 5,566.7 December 31, (In millions) 2022 2021 Long-Lived Assets by Geographic Area (a) Non-U.S.: Mexico $ 123.1 116.8 France 89.4 81.6 Brazil 72.5 61.8 United Kingdom 46.0 3.7 Canada 32.9 42.0 Other 270.1 262.1 Subtotal 634.0 568.0 U.S. 301.3 297.6 Total $ 935.3 865.6 (a) Long-lived assets include only property and equipment, net. 77 Years Ended December 31, (In millions) 2022 2021 2020 Revenues by Geographic Area (a) Outside the U.S.: Mexico $ 452.6 416.1 366.3 France 370.1 373.8 336.7 Brazil 329.9 303.9 315.0 Argentina 203.9 177.5 171.2 Canada 124.5 138.3 129.8 Netherlands 124.3 129.3 97.9 Other 1,470.6 1,392.6 1,142.4 Subtotal 3,075.9 2,931.5 2,559.3 U.S. 1,459.6 1,268.7 1,131.6 Total $ 4,535.5 4,200.2 3,690.9 (a) Revenues are recorded in the country where service is initiated or performed. No single customer represents more than 10% of total revenue. December 31, (In millions) 2022 2021 Net assets outside the U.S. 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. markets 1,207.8 1,184.9 Total $ 2,228.6 2,083.4 78 Note 4 - Retirement Benefits Defined-benefit Pension Plans Summary We have various defined-benefit pension plans covering eligible current and former employees. Benefits under most plans are based on salary and years of service. There are limits to the amount of benefits which can be paid to participants from a U.S. qualified pension plan. We maintain a nonqualified U.S. 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. employees were frozen on December 31, 2005. Components of Net Periodic Pension Cost (Credit) (In millions) U.S. Plans Non-U.S. Plans Total Years Ended December 31, 2022 2021 2020 2022 2021 2020 2022 2021 2020 Service cost $ — — — $ 8.1 9.1 9.7 $ 8.1 9.1 9.7 Interest cost on projected benefit obligation 22.9 21.1 26.7 13.1 12.1 11.6 36.0 33.2 38.3 Return on assets – expected ( 48.7 ) ( 47.4 ) ( 46.2 ) ( 12.7 ) ( 12.4 ) ( 12.1 ) ( 61.4 ) ( 59.8 ) ( 58.3 ) Amortization of losses 24.2 34.0 28.6 2.0 6.6 5.1 26.2 40.6 33.7 Curtailment gain — — — ( 0.5 ) ( 0.8 ) ( 1.5 ) ( 0.5 ) ( 0.8 ) ( 1.5 ) Settlement loss (a) — — — 3.2 3.3 2.4 3.2 3.3 2.4 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 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. 79 Obligations and Funded Status Changes in the projected benefit obligation (“PBO”) and plan assets for our pension plans are as follows: (In millions) U.S. Plans Non-U.S. Plans Total Years Ended December 31, 2022 2021 2022 2021 2022 2021 Benefit obligation at beginning of year $ 839.5 908.0 492.2 519.8 1,331.7 1,427.8 Service cost — — 8.1 9.1 8.1 9.1 Interest cost 22.9 21.1 13.1 12.1 36.0 33.2 Participant contributions — — 0.3 0.4 0.3 0.4 Plan amendments — — 0.1 ( 0.7 ) 0.1 ( 0.7 ) Plan combinations — — 0.9 7.6 0.9 7.6 Acquisitions — — — 5.9 — 5.9 Curtailments — — ( 0.4 ) ( 1.1 ) ( 0.4 ) ( 1.1 ) Settlements — — ( 10.8 ) ( 14.0 ) ( 10.8 ) ( 14.0 ) Benefits paid ( 45.0 ) ( 46.9 ) ( 16.1 ) ( 13.8 ) ( 61.1 ) ( 60.7 ) 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 ) Benefit obligation at end of year $ 627.2 839.5 334.7 492.2 961.9 1,331.7 Fair value of plan assets at beginning of year $ 764.8 747.1 360.3 355.8 1,125.1 1,102.9 Return on assets – actual ( 124.1 ) 63.9 ( 81.1 ) 22.8 ( 205.2 ) 86.7 Participant contributions — — 0.3 0.4 0.3 0.4 Plan combinations — — 0.9 5.0 0.9 5.0 Employer contributions 0.6 0.7 14.7 12.5 15.3 13.2 Settlements — — ( 10.8 ) ( 14.0 ) ( 10.8 ) ( 14.0 ) Benefits paid ( 45.0 ) ( 46.9 ) ( 16.1 ) ( 13.8 ) ( 61.1 ) ( 60.7 ) Foreign currency exchange effects — — ( 22.7 ) ( 8.4 ) ( 22.7 ) ( 8.4 ) Fair value of plan assets at end of year $ 596.3 764.8 245.5 360.3 841.8 1,125.1 Funded status $ ( 30.9 ) ( 74.7 ) ( 89.2 ) ( 131.9 ) ( 120.1 ) ( 206.6 ) Included in: Noncurrent asset $ — — 17.7 18.4 17.7 18.4 Current liability, included in accrued liabilities 0.7 0.6 6.1 5.1 6.8 5.7 Noncurrent liability 30.2 74.1 100.8 145.2 131.0 219.3 Net pension liability $ 30.9 74.7 89.2 131.9 120.1 206.6 80 Other Changes in Plan Assets and Benefit Recognized in Other Comprehensive Income (Loss) (In millions) U.S. Plans Non-U.S. Plans Total Years Ended December 31, 2022 2021 2022 2021 2022 2021 Benefit plan net actuarial losses recognized in accumulated other comprehensive income (loss): Beginning of year $ ( 228.3 ) ( 321.5 ) ( 61.3 ) ( 82.4 ) ( 289.6 ) ( 403.9 ) 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 Foreign currency exchange effects — — 3.7 0.7 3.7 0.7 End of year $ ( 186.7 ) ( 228.3 ) ( 18.9 ) ( 61.3 ) ( 205.6 ) ( 289.6 ) Benefit plan prior service cost recognized in accumulated other comprehensive income (loss): Beginning of year $ — — 0.1 ( 0.6 ) 0.1 ( 0.6 ) Prior service credit (cost) from plan amendments during the year — — ( 0.1 ) 0.7 ( 0.1 ) 0.7 Foreign currency exchange effects — — ( 0.1 ) — ( 0.1 ) — End of year $ — — ( 0.1 ) 0.1 ( 0.1 ) 0.1 U.S. Plans 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 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). Non-U.S. Plans 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). Information Comparing Plan Assets to Plan Obligations Information comparing plan assets to plan obligations as of December 31, 2022 and 2021 are aggregated below. The accumulated benefit obligation (“ABO”) differs from the PBO in that the ABO is based on the benefit earned through the date noted. The PBO includes assumptions about future compensation levels for plans that have not been frozen. The total ABO for our U.S. pension plans was $ 627.2 million in 2022 and $ 839.5 million in 2021. The total ABO for our Non-U.S. pension plans was $ 304.2 million in 2022 and $ 448.2 million in 2021. (In millions) U.S. Plans Non-U.S. Plans Total December 31, 2022 2021 2022 2021 2022 2021 Information for pension plans with an ABO in excess of plan assets: Fair value of plan assets $ 596.3 764.8 84.9 125.9 681.2 890.7 Accumulated benefit obligation 627.2 839.5 171.0 249.8 798.2 1,089.3 Projected benefit obligation 627.2 839.5 191.1 276.2 818.3 1,115.7 81 Assumptions The weighted-average assumptions used to determine the net pension cost and benefit obligations for our pension plans were as follows: U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Discount rate: Pension cost 2.8 % 2.4 % 3.3 % 2.8 % 2.3 % 3.2 % Benefit obligation at year end 5.4 % 2.8 % 2.4 % 5.4 % 2.8 % 2.3 % Expected return on assets – pension cost 7.00 % 7.00 % 7.00 % 3.76 % 3.55 % 3.28 % Average rate of increase in salaries (a): Pension cost N/A N/A N/A 1.6 % 1.9 % 2.6 % Benefit obligation at year end N/A N/A N/A 1.9 % 1.6 % 1.9 % (a) Salary scale assumptions are determined through historical experience and vary by age and industry. The U.S. plan benefits are frozen and will not increase due to future salary increases. Mortality Tables for our U.S. Retirement Benefits We use the Society of Actuaries base mortality tables for private sector plans, Pri-2012, and the Mercer modified MP-2021 projection scale, with a Blue Collar adjustment factor for the majority of our U.S. retirement plans and a White Collar adjustment factor for our nonqualified U.S. pension plan. Estimated Future Cash Flows Estimated Future Contributions from the Company into Plan Assets Our policy is to fund at least the minimum actuarially determined amounts required by applicable regulations. We do not expect to make contributions to our primary U.S. pension plan in 2023. We expect to contribute $ 8.1 million to our non-U.S. pension plans and $ 0.6 million to our nonqualified U.S. pension plan in 2023. Estimated Future Benefit Payments from Plan Assets to Beneficiaries Projected benefit payments of the plans in the next 10 years using assumptions in effect at December 31, 2022, are as follows: (In millions) U.S. Plans Non-U.S. Plans Total 2023 $ 48.8 18.8 67.6 2024 48.7 18.1 66.8 2025 48.6 18.8 67.4 2026 48.5 20.6 69.1 2027 48.2 21.6 69.8 2028 through 2032 231.7 136.7 368.4 82 Retirement Benefits Other than Pensions Summary We provide retirement healthcare benefits for eligible current and former U.S., Canadian, and Brazilian employees. Retirement benefits related to our former U.S. coal operation include medical benefits provided by the Pittston Coal Group Companies Employee Benefit Plan for UMWA Represented Employees (the “UMWA plans”) as well as costs related to black lung obligations. Components of Net Periodic Postretirement Cost The components of net periodic postretirement cost related to retirement benefits other than pensions were as follows: (In millions) UMWA Plans Black Lung and Other Plans Total Years Ended December 31, 2022 2021 2020 2022 2021 2020 2022 2021 2020 Service cost $ — — — $ 0.1 0.1 0.1 $ 0.1 0.1 0.1 Interest cost on APBO 10.3 9.8 12.7 3.7 3.2 3.8 14.0 13.0 16.5 Return on assets – expected ( 13.2 ) ( 12.3 ) ( 13.0 ) — — — ( 13.2 ) ( 12.3 ) ( 13.0 ) Amortization of losses 10.0 17.5 16.5 7.3 9.0 8.3 17.3 26.5 24.8 Amortization of prior service credit ( 4.6 ) ( 4.7 ) ( 4.7 ) ( 0.3 ) ( 0.3 ) ( 0.3 ) ( 4.9 ) ( 5.0 ) ( 5.0 ) Net periodic postretirement cost $ 2.5 10.3 11.5 $ 10.8 12.0 11.9 $ 13.3 22.3 23.4 The components of net periodic postretirement cost other than the service cost component are included in interest and other nonoperating income (expense) in the consolidated statements of operations. Obligations and Funded Status Changes in the accumulated postretirement benefit obligation (“APBO’) and plan assets related to retirement healthcare benefits are as follows: (In millions) UMWA Plans Black Lung and Other Plans Total Years Ended December 31, 2022 2021 2022 2021 2022 2021 APBO at beginning of year $ 397.4 440.1 113.0 117.9 510.4 558.0 Service cost — — 0.1 0.1 0.1 0.1 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 ) Actuarial (gains) losses, net ( 86.8 ) ( 29.6 ) ( 18.9 ) 0.6 ( 105.7 ) ( 29.0 ) Foreign currency exchange effects — — 0.3 ( 0.7 ) 0.3 ( 0.7 ) APBO at end of year $ 233.9 397.4 89.2 113.0 323.1 510.4 Fair value of plan assets at beginning of year $ 178.0 168.0 — — 178.0 168.0 Return on assets – actual ( 15.1 ) 32.9 — — ( 15.1 ) 32.9 Employer contributions — — 9.0 8.1 9.0 8.1 Net transfers from plan assets ( 3.6 ) — — — ( 3.6 ) — Benefits paid ( 20.3 ) ( 22.9 ) ( 9.0 ) ( 8.1 ) ( 29.3 ) ( 31.0 ) Fair value of plan assets at end of year $ 139.0 178.0 — — 139.0 178.0 Funded status $ ( 94.9 ) ( 219.4 ) ( 89.2 ) ( 113.0 ) ( 184.1 ) ( 332.4 ) Included in: Current, included in accrued liabilities $ — — 9.6 10.2 9.6 10.2 Noncurrent 94.9 219.4 79.6 102.8 174.5 322.2 Retirement benefits other than pension liability $ 94.9 219.4 89.2 113.0 184.1 332.4 83 Other Changes in Plan Assets and Benefit Recognized in Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) of our retirement benefit plans other than pensions are as follows: (In millions) UMWA Plans Black Lung and Other Plans Total Years Ended December 31, 2022 2021 2022 2021 2022 2021 Benefit plan net actuarial gain (loss) recognized in accumulated other comprehensive income (loss): Beginning of year $ ( 162.4 ) ( 230.1 ) ( 71.6 ) ( 80.3 ) ( 234.0 ) ( 310.4 ) Net actuarial gains (losses) arising during the year 58.5 50.2 18.9 ( 0.6 ) 77.4 49.6 Reclassification adjustment for amortization of prior actuarial losses included in net income (loss) 10.0 17.5 7.3 9.0 17.3 26.5 Foreign currency exchange effects — — ( 0.1 ) 0.3 ( 0.1 ) 0.3 End of year $ ( 93.9 ) ( 162.4 ) ( 45.5 ) ( 71.6 ) ( 139.4 ) ( 234.0 ) Benefit plan prior service (cost) credit recognized in accumulated other comprehensive income (loss): 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 ) Foreign currency exchange effects — — — — — — End of year $ 80.7 18.6 0.3 0.6 81.0 19.2 UMWA Plans 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). 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). Assumptions See Mortality Tables for our U.S. Retirement Benefits on page 86 for a description of the mortality assumptions. The APBO for each of the plans was determined using the unit credit method and assumed rates as follows: 2022 2021 2020 Weighted-average discount rate: Postretirement cost: UMWA plans 2.8 % 2.3 % 3.2 % Black lung 2.7 % 2.2 % 3.1 % Weighted-average 2.9 % 2.4 % 3.3 % Benefit obligation at year end: UMWA plans 5.4 % 2.8 % 2.3 % Black lung 5.4 % 2.7 % 2.2 % Weighted-average 5.6 % 2.9 % 2.4 % Expected return on assets 8.00 % 8.00 % 8.00 % 84 Healthcare Cost Trend Rates For UMWA plans, the assumed healthcare cost trend rate used to compute the 2022 APBO is 7.0 % for 2023, declining to 5.0 % in 2031 and thereafter (in 2021: 5.8 % for 2022 declining to 5.0 % in 2030 and thereafter). For the black lung obligation, the assumed healthcare cost trend rate used to compute the 2022 APBO was 5.0 %. Other plans in the U.S. provide for fixed-dollar value coverage for eligible participants and, accordingly, are not adjusted for inflation. For the Canadian plan, the assumed healthcare cost trend rate used to compute the 2022 APBO is 7.0 % for 2023, declining to 5.0 % in 2031. For the Brazilian plan, the assumed healthcare cost trend rate used to compute the 2022 APBO is 4.8 %. We provide healthcare benefits to our UMWA retirees who are eligible for the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Medicare Act”) subsidy reimbursement under an employer group waiver plan (“EGWP”). Under this arrangement, a government approved health insurance provider receives the Medicare Act subsidy reimbursement on our behalf and passes these savings to us. 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. Cash Flows Estimated Contributions from the Company to Plan Assets Based on the funded status and assumptions at December 31, 2022, we expect the Company to contribute $ 9.6 million in cash to the plans to pay 2023 beneficiary payments for black lung and other plans. We do not expect to contribute cash to our UMWA plans in 2023 since we believe these plans have sufficient amounts held in trust to pay for beneficiary payments until 2033 based on actuarial assumptions. Our UMWA plans are not covered by ERISA or other funding laws or regulations that require these plans to meet funding ratios. Estimated Future Benefit Payments from Plan Assets to Beneficiaries Projected benefit payments of the plans in the next 10 years using assumptions in effect at December 31, 2022, are as follows: (In millions) UMWA Plans Black Lung and Other Plans Total 2023 $ 20.0 9.6 29.6 2024 19.9 9.0 28.9 2025 19.8 8.4 28.2 2026 19.6 7.8 27.4 2027 19.5 7.3 26.8 2028 through 2032 92.8 30.7 123.5 85 Retirement Plan Assets U.S. Plans December 31, 2022 December 31, 2021 (In millions, except for percentages) Fair Value Level Total Fair Value % Actual Allocation % Target Allocation Total Fair Value % Actual Allocation % Target Allocation U.S. Pension Plans Cash, cash equivalents and receivables $ 3.8 — — 3.9 — — Equity securities: U.S. large-cap (a) 1 90.2 15 16 150.4 20 20 U.S. small/mid-cap (a) 1 27.9 5 5 52.4 7 7 International (a) 1 99.2 17 17 162.5 21 22 Emerging markets (b) 1 11.5 2 2 29.0 4 4 Dynamic asset allocation (c) 1 28.1 5 5 52.5 7 7 Fixed-income securities: Long duration - mutual fund (d) 1 189.4 44 45 186.7 29 30 Long duration - Treasury strips (d) 2 74.9 38.3 Other types of investments: Core property (g) (l) 36.2 6 5 43.7 6 5 Structured credit (h) (l) 35.1 6 5 45.4 6 5 Total $ 596.3 100 100 764.8 100 100 UMWA Plans Cash, cash equivalents and receivables $ 0.2 — — — — — Equity securities: U.S. large-cap (a) 1 25.6 18 22 32.8 18 19 U.S. small/mid-cap (a) 1 10.0 7 10 13.8 8 8 International (a) 1 28.2 20 24 40.4 23 24 Emerging markets (b) 1 4.9 4 4 6.7 4 4 Dynamic asset allocation (c) 1 8.5 6 7 12.1 7 7 Fixed-income securities: High yield (e) 1 2.4 2 2 3.5 2 2 Emerging markets (f) 1 5.0 4 4 6.7 4 4 Multi asset real return (i) 1 6.1 4 5 8.6 5 5 Other types of investments: Core property (g) (l) 20.6 15 10 16.6 9 10 Structured credit (h) (l) 12.8 9 5 13.1 7 5 Global private equity (j) (l) 11.9 9 7 13.9 8 7 Energy debt (k) (l) 2.8 2 — 9.8 5 5 Total $ 139.0 100 100 178.0 100 100 (a) These categories include a passively managed U.S. large-cap equity mutual fund, an actively managed U.S. small/mid-cap equity and a Non-U.S. equity mutual fund that track various indices such as the S&P 500 Index, the Russell 2500 Index and the MSCI All Country World Ex-U.S. Index. (b) This category represents an actively managed mutual fund that invests primarily in equity securities of emerging market issuers. Emerging market countries are those countries that are characterized as developing or emerging by any of the World Bank, the United Nations, the International Finance Corporation, or the European Bank for Reconstruction and Development or included in an emerging markets index by a recognized index provider. (c) This category represents an actively managed mutual fund that seeks to generate, over time, a total return in excess of the broad U.S. equity market by selecting investments from among a broad range of asset classes based upon the manager's expectations of risk and return. The fund’s allocations among asset classes may be adjusted over short periods and can vary from multiple to a single asset class. (d) This category represents actively managed mutual funds that seek to duplicate the risk and return characteristics of an intermediate to a long-term fixed-income security portfolio with an approximate duration of 10 to 15 years and longer. This is achieved by using an intermediate duration credit bond fund and a long duration credit bond mutual fund. This category also includes Treasury future contracts and zero-coupon securities created by the U.S. Treasury. (e) This category represents an actively managed mutual fund that invests primarily in fixed-income securities rated below investment grade, including corporate bonds and debentures, convertible and preferred securities and zero-coupon obligations. The fund’s average weighted maturity may vary and will generally not exceed ten years . (f) This category represents an actively managed mutual fund that invests primarily in U.S. dollar-denominated debt securities of government, government-related and corporate issuers in emerging market countries, as well as entities organized to restructure the outstanding debt of such issuers. (g) This category represents an actively managed real estate fund of funds that seeks both current income and long-term capital appreciation through investing in underlying funds that acquire, manage, and dispose of commercial real estate properties. These properties are high-quality, low-leveraged, income-generating office, industrial, retail, and multi-family properties, generally fully-leased to creditworthy companies and governmental entities. (h) This category invests primarily in a diversified portfolio comprised primarily of collateralized loan obligations and other structured credit investments backed primarily by bank loans. (i) This category represents an actively managed mutual fund that invests primarily in fixed income and equity securities and commodity linked instruments. The category seeks total returns that exceed the rate of inflation over a full market cycle regardless of market conditions. (j) This category will offer exposure to a diversified pool of global private assets fund investments. Further, the category will seek to shorten the duration of the typical private assets fund of funds through a dedicated focus on secondary strategies (i.e. funds whose investment strategy is to purchase interests in other private market investments/funds as a way to provide the original investors liquidity prior to the end of those investments’/funds’ contracted end date), income-producing investment strategies (e.g. debt, real estate, and to a lesser extent, real assets), and underlying funds whose stated life is five to seven years , as opposed to the more typical 10 -year life of private assets funds. (k) This category invests in credit securities of commodity oriented companies affected by the dislocation in the commodity markets with the investment objective of producing an equity like return with less downside risk than equity or commodity investments. (l) In accordance with ASC Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. Assets of our U.S. plans are invested with an objective of maximizing the total return, taking into consideration the liabilities of the plan, and minimizing the risks that could create the need for excessive contributions. Plan assets are invested primarily using actively managed 86 accounts with asset allocation targets listed in the tables above. Our policy does not permit the purchase of Brink’s common stock if immediately after any such purchase the aggregate fair market value of the plan assets invested in Brink’s common stock exceeds 10% of the aggregate fair market value of the assets of the plan, except as permitted by an exemption under ERISA. The plans rebalance their assets on a quarterly basis if actual allocations of assets are outside predetermined ranges. 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 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. As the global private equity investment matures and becomes fully invested, liquidating distributions will be provided back to investors. We expect to receive liquidating distributions over the stated life of the underlying investments. We have $ 4 million in unfunded commitments related to the global private equity investment. Most of the investments of our U.S. retirement plans can be redeemed daily. The structured credit investments can be redeemed quarterly with 65 days’ notice. The core property fund investment can be redeemed quarterly with 95 days’ notice. We believe all plans have sufficient liquidity to meet the needs of the plans' beneficiaries in all market scenarios. Non-U.S. Plans December 31, 2022 December 31, 2021 (In millions, except for percentages) Total Fair Value % Actual Allocation % Target Allocation Total Fair Value % Actual Allocation % Target Allocation Non-U.S. Pension Plans Cash and cash equivalents $ 0.7 — — 0.8 — — Equity securities: U.S. equity funds (a) 9.6 22.8 Canadian equity funds (a) 3.6 9.6 European equity funds (a) 1.4 4.5 Other global equity funds (a) 15.4 38.5 Total equity securities 30.0 12 13 75.4 21 18 Fixed-income securities: Canadian fixed-income securities (b) 42.0 71.5 European fixed-income funds (c) 11.0 9.8 High-yield (d) 0.7 2.0 Emerging markets (e) 0.7 2.1 Long-duration (f) 59.5 63.9 Total fixed-income securities 113.9 47 47 149.3 42 44 Other types of investments: Guaranteed contract value (g) 75.8 31 33 109.7 30 32 Property funds (h) 9.6 10 7 9.4 7 6 Global infrastructure fund (i) 6.8 9.7 Other 8.7 6.0 Total other types of investments 100.9 134.8 Total $ 245.5 100 100 360.3 100 100 (a) These categories are comprised of equity index actively and passively managed funds that track various indices such as S&P 500 Composite Total Return Index, Russell 2500 Index, MSCI World Index, S&P/TSX Composite Index and others. Some of these funds use a dynamic asset allocation investment strategy seeking to generate total return over time by selecting investments from among a broad range of asset classes, investing primarily through the use of derivatives. (b) This category represents actively managed mutual funds that seek to duplicate the risk and return characteristics of an intermediate to a long-term fixed-income security portfolio with an approximate duration of 10 to15 years and longer. This is achieved by using an intermediate duration credit bond fund and a long duration credit bond mutual fund. This category also includes Canadian-dollar denominated zero-coupon securities issued by the Canadian Federal and Provincial governments, and agencies thereof. (c) This category is primarily designed to generate income and exhibit volatility similar to that of the Sterling denominated bond market. This category primarily invests in investment grade or better securities. (d) This category consists of global high-yield bonds. This category invests in lower rated and unrated fixed income, floating rate and other debt securities issued by European and American companies. (e) This category consists of a diversified portfolio of debt securities issued by governments, financial institutions, companies or other entities domiciled in emerging market countries. (f) This category is designed to achieve a return consistent with holding longer term debt instruments. This category invests in interest rate and inflation derivatives, government-issued bonds, real-return bonds, and futures contracts. (g) This represents the guaranteed contract value of insurance contracts in the Netherlands pension plan. (h) This category offers exposure to limited partnerships invested in diversified real estate, participating mortgages, and property for development and resale. (i) This category is a limited partnership invested in fund of funds designed to acquire and maintain a diversified portfolio of global infrastructure investments (within targeted sub-sectors with varied maturities) that realizes a minimum of 10% annual return over a three-year rolling period. Asset allocation strategies for our non-U.S. plans are designed to accumulate a diversified portfolio among markets and asset classes in order to reduce market risk and increase the likelihood that pension assets are available to pay benefits as they are due. Assets of non-U.S. pension plans are invested primarily using actively managed accounts. The weighted-average asset allocation targets are listed in the table above, and 87 reflect limitations on types of investments held and allocations among assets classes, as required by local regulation or market practice of the country where the assets are invested. Most of the investments of our non-U.S. retirement plans can be redeemed at least monthly, except for a portion of “Other” in the above table, which can be redeemed quarterly. Non-U.S. Plans - Fair Value Measurements (In millions) December 31, 2022 December 31, 2021 Quoted prices in active markets for identical assets (Level 1) $ 88.2 119.0 Significant other observable inputs (Level 2) 45.3 75.7 Guaranteed contract value (Level 3) (a) 75.8 109.7 Other insurance contract value (Level 3) (b) 2.7 3.0 Net asset value per share practical expedient (c) 33.5 52.9 Total fair value $ 245.5 360.3 (a) In 2020, we acquired operations in the Netherlands as part of the U.K.-based G4S plc ("G4S") acquisition. As a result, we acquired insurance contract assets related to the Netherlands pension plan. These investments are valued at the highest value available at year end, either the reported cash surrender value of the contract or the vested benefit obligation ("VBO"). The VBO for a defined benefit pension plan is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee's expected date of separation or retirement. Both the cash surrender value and the VBO are determined based on unobservable inputs, which are contractually or actuarially determined, regarding returns, fees, the present value of the future cash flows of the contract and benefit obligations. The contract is classified as a Level 3 investment. (b) In 2021, our Belgium plans invested in a traditional group insurance policy, where assets are invested in the insurers' main fund with a minimum guaranteed rate. The contracts are valued based on the weighted average return of each individual insured contract. The contract value is determined based on unobservable inputs.. The contract is classified as a Level 3 investment. (c) In accordance with ASC Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. Savings Plans We sponsor various defined contribution plans to help eligible employees provide for retirement. We record expense for amounts that we contribute on behalf of employees, usually in the form of matching contributions. Prior to April 1, 2020, we matched the first 2 % of employees’ eligible contributions to our U.S. 401(k) plan. In April 2020, we temporarily suspended matching contributions. Effective January 1, 2021, the plan reinstated the Company-matching contribution to match the first 2 % of employees' eligible contributions to our U.S. 401(k) plan. Our matching contribution expense is as follows: (In millions) Years Ended December 31, 2022 2021 2020 U.S. 401(K) $ 7.6 6.5 2.0 Other plans 11.5 12.6 9.9 Total $ 19.1 19.1 11.9 88 Note 5 - Income Taxes Years Ended December 31, (In millions) 2022 2021 2020 Income (loss) from continuing operations before income taxes U.S. $ ( 44.3 ) ( 1.8 ) ( 72.9 ) Foreign 270.5 237.3 152.2 Income from continuing operations before income taxes $ 226.2 235.5 79.3 Provision (benefit) for income taxes from continuing operations Current tax expense (benefit) U.S. federal $ 2.8 0.5 ( 0.8 ) State 1.6 0.9 ( 0.6 ) Foreign 99.3 104.3 86.2 Current tax expense 103.7 105.7 84.8 Deferred tax expense (benefit) U.S. federal ( 59.3 ) 6.0 ( 7.9 ) State ( 0.1 ) 2.9 ( 1.6 ) Foreign ( 2.9 ) 5.7 ( 18.7 ) Deferred tax expense (benefit) ( 62.3 ) 14.6 ( 28.2 ) Provision for income taxes of continuing operations $ 41.4 120.3 56.6 Years Ended December 31, (In millions) 2022 2021 2020 Comprehensive provision (benefit) for income taxes allocable to Continuing operations $ 41.4 120.3 56.6 Discontinued operations ( 0.9 ) 0.6 ( 0.2 ) Other comprehensive income (loss) 55.9 55.3 ( 12.4 ) Equity — — ( 0.6 ) Comprehensive provision for income taxes $ 96.4 176.2 43.4 Rate Reconciliation The following table reconciles the difference between the actual tax rate on continuing operations and the statutory U.S. federal income tax rate of 21% for 2022, 2021 and 2020. Years Ended December 31, (In percentages) 2022 2021 2020 U.S. federal tax rate 21.0 % 21.0 % 21.0 % Increases (reductions) in taxes due to: Foreign rate differential 7.5 7.6 12.9 Taxes on cross border income, net of credits 6.9 4.6 11.0 Adjustments to valuation allowances ( 21.1 ) 6.7 6.6 Foreign income taxes ( 0.7 ) 6.1 10.6 French business tax 0.8 0.7 3.7 State income taxes, net 0.7 0.9 ( 1.6 ) Share-based compensation 1.3 0.2 ( 3.1 ) Acquisition costs — 0.5 6.0 Other 1.9 2.8 4.3 Actual income tax rate on continuing operations 18.3 % 51.1 % 71.4 % 89 Components of Deferred Tax Assets and Liabilities December 31, (In millions) 2022 2021 Deferred tax assets Pension liabilities $ 33.5 53.1 Retirement benefits other than pensions 23.8 54.6 Lease liabilities 80.9 85.4 Workers’ compensation and other claims 27.5 35.5 Property and equipment, net 54.1 35.7 Other assets and liabilities 113.3 88.2 Net operating loss carryforwards 53.4 72.8 Interest limitations and other tax carryforwards (a) 20.6 6.0 Foreign tax and other tax credits (b) 57.4 82.8 Subtotal 464.5 514.1 Valuation allowances ( 77.3 ) ( 141.5 ) Total deferred tax assets 387.2 372.6 Deferred tax liabilities Right-of-use assets, net 76.8 76.9 Goodwill and other intangibles 100.3 76.7 Other assets and miscellaneous 31.7 28.8 Deferred tax liabilities 208.8 182.4 Net deferred tax asset $ 178.4 190.2 Included in: Noncurrent assets $ 246.2 239.4 Noncurrent liabilities ( 67.8 ) ( 49.2 ) Net deferred tax asset $ 178.4 190.2 (a) U.S. 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. (b) U.S. 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. The U.S. foreign tax credits and other credits have a valuation allowance of $ 10.3 million. Valuation Allowances Valuation allowances relate to deferred tax assets for certain federal credit carryforwards, certain state and non-U.S. jurisdictions. Based on our analysis of positive and negative evidence including historical and expected future taxable earnings, and a consideration of available tax-planning strategies, we believe it is more-likely-than-not that we will realize the benefit of the existing deferred tax assets, net of valuation allowances, at December 31, 2022. Years Ended December 31, (In millions) 2022 2021 2020 Valuation allowances: Beginning of year $ 141.5 128.1 118.3 Expiring tax credits ( 0.2 ) ( 0.7 ) ( 0.4 ) Acquisitions and dispositions — ( 0.8 ) 4.9 Changes in judgment about deferred tax assets (a) ( 46.1 ) 8.8 ( 2.4 ) Other changes in deferred tax assets, charged to: Income from continuing operations ( 1.4 ) 7.4 8.1 Other comprehensive income (loss) ( 13.9 ) ( 0.2 ) ( 0.3 ) Foreign currency exchange effects ( 2.6 ) ( 1.1 ) ( 0.1 ) End of year $ 77.3 141.5 128.1 (a) Changes in judgment about valuation allowances are based on a recognition threshold of “more-likely-than-not” of realizing beginning-of-year balances of deferred tax assets. 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.. 90 Net Operating Losses The gross amount of the net operating loss carryforwards as of December 31, 2022, was $ 385.3 million. The tax benefit of net operating loss carryforwards, before valuation allowances, as of December 31, 2022, was $ 53.4 million, and expires as follows: (In millions) Federal State Foreign Total Years of expiration 2023-2027 $ — — 1.8 1.8 2028-2032 — 0.5 1.1 1.6 2033 and thereafter — 9.7 4.2 13.9 Unlimited 4.2 1.7 30.2 36.1 $ 4.2 11.9 37.3 53.4 Uncertain Tax Positions A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31, (In millions) 2022 2021 2020 Uncertain tax positions: Beginning of year $ 28.9 14.0 12.0 Increases related to prior-year tax positions 1.2 3.0 — Decreases related to prior-year tax positions ( 2.9 ) ( 0.4 ) ( 0.2 ) Increases related to current-year tax positions 2.3 5.2 2.3 Increases related to acquisitions 0.3 11.8 4.1 Settlements ( 2.4 ) ( 2.5 ) ( 2.1 ) Effect of the expiration of statutes of limitation ( 1.9 ) ( 1.6 ) ( 1.4 ) Foreign currency exchange effects ( 2.0 ) ( 0.6 ) ( 0.7 ) End of year $ 23.5 28.9 14.0 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 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. The impact of interest and penalties on the 2022, 2021 and 2020 tax provisions was not significant. We had accrued interest and penalties of $ 5.8 million at December 31, 2022, and $ 7.6 million at December 31, 2021. We file income tax returns in the U.S. federal and various state and foreign jurisdictions. 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. Additionally, due to statute of limitations expirations and audit settlements, it is reasonably possible that approximately $ 3.8 million of currently remaining unrecognized tax positions may be recognized by the end of 2023. 91 Note 6 - Property and Equipment The following table presents our property and equipment that is classified as held and used: December 31, (In millions) 2022 2021 Land $ 49.9 50.4 Buildings 226.2 224.6 Leasehold improvements 271.7 271.4 Vehicles 755.2 712.7 Capitalized software (a) 237.0 233.2 DRS devices leased to customers 190.3 170.7 Other machinery and equipment 666.4 624.3 2,396.7 2,287.3 Accumulated depreciation and amortization ( 1,461.4 ) ( 1,421.7 ) Property and equipment, net $ 935.3 865.6 (a) Amortization of capitalized software costs included in continuing operations was $ 16.1 million in 2022, $ 14.5 million in 2021 and $ 14.7 million in 2020. 92 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. We accounted for these acquisitions as business combinations using the acquisition method. Under the acquisition method of accounting, assets acquired and liabilities assumed from these operations are recorded at fair value on the date of acquisition. 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 Cash $ 6.8 Restricted cash 15.3 Accounts receivable 38.1 Other current assets 14.5 Property and equipment, net 39.9 Intangible assets (a) 84.2 Goodwill (b) 62.7 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. 93 PAI, Midco Inc. Acquisition On April 1, 2021 , we acquired 100 % of the capital stock of PAI Midco, Inc., which directly or indirectly owns 100% of the ownership interests in four additional entities (collectively, "PAI"), for approximately $ 216 million. PAI was the largest privately-held provider of ATM services in the U.S. and generated approximately $ 94 million in revenues in 2020. 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. 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 disclosed. (In millions) Estimated Fair Value at Acquisition Date Fair value of purchase consideration Cash paid through December 31, 2022 $ 215.5 Fair value of purchase consideration $ 215.5 Fair value of net assets acquired Cash $ 12.3 Accounts receivable 7.3 Other current assets 5.5 Property and equipment, net 14.6 Intangible assets (a) 95.0 Goodwill (b) 126.1 Other noncurrent assets 4.5 Current liabilities ( 41.2 ) Other noncurrent liabilities ( 8.6 ) Fair value of net assets acquired $ 215.5 (a) Intangible assets are composed of customer relationships ($ 60 million fair value and 10 year amortization period), developed technology ($ 26 million fair value and 12 year amortization period) and a trade name ($ 9 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 PAI's operations with our existing Brink's U.S. operations. All goodwill has been assigned to the North America reporting unit. We expect less than $ 2 million of goodwill to be deductible for tax purposes. 94 G4S Acquisitions On February 26, 2020, we announced that we agreed to acquire the majority of the cash management operations of U.K.-based G4S, with closings planned in multiple phases in 2020. In March 2020, we acquired 100 % of the capital stock of G4S International Logistics Group Limited, a company which directly or indirectly owns controlling interests in multiple businesses providing secure international transportation of valuables. In the second quarter of 2020, we acquired cash management operations from G4S located in the Netherlands, Belgium, Ireland, Hong Kong, Cyprus, Romania, the Czech Republic, Malaysia, the Dominican Republic and the Philippines. In the third quarter of 2020, we acquired operations in Indonesia, Estonia, Latvia and Lithuania. In the first quarter of 2021, we acquired operations in Macau, Luxembourg and Kuwait, which completed the remaining planned G4S transactions. For the majority of the acquisitions in 2020 and the first quarter of 2021, we acquired 100 % of the ownership interests. In Malaysia, the Dominican Republic, the Philippines, Indonesia and Kuwait, we acquired ownership interests of less than 100 %. We believe that we meet the accounting criteria for consolidating these subsidiaries. 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. The contingent consideration noted in the following table below is related to the acquisition of the Malaysia operations. The consideration will be paid when minimum dividend distributions are received by Brink's relating to cash on the balance sheets of the Malaysia subsidiaries as of the acquisition date. We used a probability-weighted approach to estimate the fair value of the contingent consideration. 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 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. 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 Fair value of purchase consideration Cash paid through December 31, 2022 $ 816.9 Contingent consideration 22.0 Liabilities assumed from seller 2.9 Indemnification assets ( 15.9 ) Fair value of purchase consideration $ 825.9 Fair value of net assets acquired Cash $ 244.4 Restricted cash 30.1 Accounts receivable 145.8 Other current assets 30.8 Property and equipment, net 123.8 Right-of-use assets, net 77.5 Intangible assets (a) 207.0 Goodwill (b) 534.1 Other noncurrent assets 16.2 Current liabilities ( 296.3 ) Lease liabilities ( 68.1 ) Other noncurrent liabilities ( 103.9 ) Fair value of net assets acquired $ 941.4 Less: Fair value of noncontrolling interest ( 115.5 ) Fair value of purchase consideration $ 825.9 (a) Intangible assets are composed of customer relationships ($ 207 million fair value and 15 year amortization period). (b) Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating G4S operations with our existing operations. Goodwill has been provisionally assigned to the Europe reporting unit ($ 191 million), the Rest of World reporting unit ($ 340 million) and the Latin America reporting unit ($ 3 million). We do not currently expect goodwill in these reporting units to be deductible for tax purposes. 95 Actual and Pro Forma (unaudited) disclosures The pro forma consolidated results of Brink’s presented below are unaudited and reflect a hypothetical ownership on January 1, 2020 of the businesses we acquired during 2021 and a hypothetical ownership on January 1, 2021 for the businesses we acquired in 2022. (In millions) Revenue Net income attributable to Brink's 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 NoteMachine $ 35.2 2.1 Total $ 35.2 2.1 Twelve months ended December 31, 2021 PAI 98.8 6.9 Total $ 98.8 6.9 (In millions) Revenue Net income attributable to Brink's Pro forma results of Brink's for the twelve months ended December 31, 2022 Brink's as reported $ 4,535.5 170.6 NoteMachine (a) 109.2 9.9 Total $ 4,644.7 180.5 2021 Brink's as reported $ 4,200.2 105.2 NoteMachine (a) 150.8 7.2 PAI (a) 31.4 2.5 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 statements of operations as selling, general and administrative expenses. 96 Dispositions 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. We recognized a $ 4.5 million gain on the sale of this business in 2020, which is reported in interest and other nonoperating income (expense) in the consolidated statements of operations. The French security services company was part of the Europe reportable segment and reported revenues of $ 3 million in 2019. 97 Note 8 - Goodwill and Other Intangible Assets Goodwill The changes in the carrying amount of goodwill by operating segment for the years ended December 31, 2022 and 2021 are as follows: December 31, 2022 (In millions) Beginning Balance Acquisitions/ Dispositions (a) Currency Ending Balance Goodwill: North America $ 474.9 3.1 ( 0.5 ) 477.5 Latin America 214.1 2.7 3.5 220.3 Europe 302.5 61.3 ( 12.7 ) 351.1 Rest of World 420.2 ( 0.1 ) ( 18.1 ) 402.0 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 ($ 0.8 million decrease in North America and $ 0.1 million decrease in Rest of World ). December 31, 2021 (In millions) Beginning Balance Acquisitions/ Dispositions (a) Currency Ending Balance Goodwill: North America $ 347.9 126.9 0.1 474.9 Latin America 222.3 2.2 ( 10.4 ) 214.1 Europe 324.9 1.7 ( 24.1 ) 302.5 Rest of World 324.1 111.1 ( 15.0 ) 420.2 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 ($ 0.1 million increase in North America, $ 9.6 million decrease in Europe and $ 4.8 million decrease in Rest of World ). Intangible Assets The following table summarizes our other intangible assets by category: December 31, 2022 December 31, 2021 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-average amortization period Customer relationships $ 639.2 ( 187.6 ) 451.6 $ 581.9 ( 145.7 ) 436.2 10.1 Indefinite-lived trade names 7.9 — 7.9 7.6 — 7.6 — Finite-lived trade names 38.9 ( 16.3 ) 22.6 28.6 ( 12.2 ) 16.4 5 Developed technology 60.7 ( 7.4 ) 53.3 34.7 ( 3.9 ) 30.8 10.7 Other 4.2 ( 4.1 ) 0.1 4.4 ( 4.2 ) 0.2 2 Total $ 750.9 ( 215.4 ) 535.5 $ 657.2 ( 166.0 ) 491.2 Total amortization expense for our finite-lived intangible assets was $ 52.0 million in 2022 and $ 47.7 million in 2021. Our estimated aggregate amortization expense for finite-lived intangibles recorded at December 31, 2022, for the next five years is as follows: (In millions) 2023 2024 2025 2026 2027 Amortization expense $ 56.0 55.7 55.1 52.8 49.8 98 Note 9 - Prepaid Expenses and Other December 31, (In millions) 2022 2021 Prepaid expenses $ 169.5 134.4 Derivative instruments 41.0 15.2 Income tax receivable 26.3 18.4 Other 87.9 43.0 Prepaid expenses and other $ 324.7 211.0 Note 10 - Other Assets December 31, (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 Prepaid pension assets 17.7 18.4 Indemnification assets 16.3 22.1 Derivative instruments 11.1 43.0 Other 69.5 65.4 Other assets $ 286.2 260.2 99 Note 11 - Accumulated Other Comprehensive Income (Loss) The following tables provide the components of other comprehensive income (loss), including the amounts reclassified from accumulated other comprehensive income (loss) into earnings: Amounts Arising During the Current Period Amounts Reclassified to Net Income (Loss) (In millions) Pretax Income Tax Pretax Income Tax Total Other Comprehensive Income (Loss) 2022 Amounts attributable to Brink's: Benefit plan adjustments $ 197.3 ( 45.4 ) 41.5 ( 10.1 ) 183.3 Foreign currency translation adjustments (b) ( 6.5 ) 2.7 ( 5.8 ) 1.4 ( 8.2 ) 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 ) 32.7 214.8 ( 43.0 ) 48.4 ( 12.9 ) 207.3 Amounts attributable to noncontrolling interests: Benefit plan adjustments 0.4 — — — 0.4 Foreign currency translation adjustments ( 6.7 ) — — — ( 6.7 ) ( 6.3 ) — — — ( 6.3 ) Total Benefit plan adjustments (a) 197.7 ( 45.4 ) 41.5 ( 10.1 ) 183.7 Foreign currency translation adjustments (b) ( 13.2 ) 2.7 ( 5.8 ) 1.4 ( 14.9 ) Unrealized gains (losses) on available-for-sale securities (c) ( 1.2 ) 0.5 0.3 ( 0.1 ) ( 0.5 ) Gains (losses) on cash flow hedges (d) 25.2 ( 0.8 ) 12.4 ( 4.1 ) 32.7 $ 208.5 ( 43.0 ) 48.4 ( 12.9 ) 201.0 2021 Amounts attributable to Brink's: Benefit plan adjustments $ 120.5 ( 28.0 ) 64.6 ( 16.3 ) 140.8 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 75.9 ( 37.3 ) 71.5 ( 18.0 ) 92.1 Amounts attributable to noncontrolling interests: Benefit plan adjustments ( 0.4 ) — — — ( 0.4 ) Foreign currency translation adjustments ( 2.2 ) — — — ( 2.2 ) ( 2.6 ) — — — ( 2.6 ) Total Benefit plan adjustments (a) 120.1 ( 28.0 ) 64.6 ( 16.3 ) 140.4 Foreign currency translation adjustments (b) ( 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) 8.1 ( 2.5 ) 11.0 ( 2.7 ) 13.9 $ 73.3 ( 37.3 ) 71.5 ( 18.0 ) 89.5 See page 101 for footnote explanations. 100 Amounts Arising During the Current Period Amounts Reclassified to Net Income (Loss) (In millions) Pretax Income Tax Pretax Income Tax Total Other Comprehensive Income (Loss) 2020 Amounts attributable to Brink's: Benefit plan adjustments $ ( 98.5 ) 22.7 56.7 ( 12.7 ) ( 31.8 ) Foreign currency translation adjustments 19.6 — — — 19.6 Gains (losses) on cash flow hedges 1.1 ( 2.5 ) ( 12.3 ) 4.9 ( 8.8 ) ( 77.8 ) 20.2 44.4 ( 7.8 ) ( 21.0 ) Amounts attributable to noncontrolling interests: Benefit plan adjustments 0.2 — — — 0.2 Foreign currency translation adjustments 4.6 — — — 4.6 4.8 — — — 4.8 Total Benefit plan adjustments (a) ( 98.3 ) 22.7 56.7 ( 12.7 ) ( 31.6 ) Foreign currency translation adjustments (b) 24.2 — — — 24.2 Gains (losses) on cash flow hedges (d) 1.1 ( 2.5 ) ( 12.3 ) 4.9 ( 8.8 ) $ ( 73.0 ) 20.2 44.4 ( 7.8 ) ( 16.2 ) (a) The amortization of actuarial losses and prior service cost is part of total net periodic retirement benefit cost when reclassified to net income (loss). Net periodic retirement benefit cost also includes service cost, interest cost, expected returns on assets, and settlement costs. Total service cost is allocated between cost of revenues and selling, general and administrative expenses on a plan-by-plan basis and the remaining net periodic retirement benefit cost items are allocated to interest and other nonoperating income (expense): December 31, (In millions) 2022 2021 2020 Total net periodic retirement benefit cost included in: Cost of revenues $ 6.3 7.2 7.7 Selling, general and administrative expenses 1.9 2.0 2.1 Interest and other nonoperating income (expense) 16.7 38.7 37.9 (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. (c) Gains and losses on sales of available-for-sale debt securities are reclassified from accumulated other comprehensive income (loss) to the consolidated statements of operations when the gains or losses are realized. Pretax amounts are classified in the consolidated statements of operations as interest and other income (expense). (d) Pretax gains and losses on cash flow hedges are classified in the consolidated statements of operations as • 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.) 101 The changes in accumulated other comprehensive loss attributable to Brink’s are as follows: (In millions) Benefit Plan Adjustments Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Securities Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2019 $ ( 583.0 ) ( 382.8 ) — ( 13.2 ) ( 979.0 ) Other comprehensive income (loss) before reclassifications ( 75.8 ) 19.6 — ( 1.4 ) ( 57.6 ) Amounts reclassified from accumulated other comprehensive loss to net income (loss) 44.0 — — ( 7.4 ) 36.6 Other comprehensive income (loss) attributable to Brink's ( 31.8 ) 19.6 — ( 8.8 ) ( 21.0 ) Balance as of December 31, 2020 ( 614.8 ) ( 363.2 ) — ( 22.0 ) ( 1,000.0 ) Other comprehensive income (loss) before reclassifications 92.5 ( 59.4 ) ( 0.1 ) 5.6 38.6 Amounts reclassified from accumulated other comprehensive loss to net income (loss) 48.3 ( 3.1 ) — 8.3 53.5 Other comprehensive income (loss) attributable to Brink's 140.8 ( 62.5 ) ( 0.1 ) 13.9 92.1 Balance as of December 31, 2021 ( 474.0 ) ( 425.7 ) ( 0.1 ) ( 8.1 ) ( 907.9 ) Other comprehensive income (loss) before reclassifications 151.9 ( 3.8 ) ( 0.7 ) 24.4 171.8 Amounts reclassified from accumulated other comprehensive loss to net income (loss) 31.4 ( 4.4 ) 0.2 8.3 35.5 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 ) 102 Note 12 - Fair Value of Financial Instruments Investments in Marketable Securities We have investments in mutual funds, equity securities and available for sale debt securities that are carried at fair value in the financial statements and are included in other assets on the consolidated balance sheet. For these investments, fair value was based on quoted market prices, which we have categorized as a Level 1 valuation. Fixed-Rate Debt The fair value and carrying value of our material fixed-rate debt, excluding any unamortized debt issuance costs, are as follows: December 31, (In millions) 2022 2021 $600 million Senior unsecured notes Carrying value $ 600.0 600.0 Fair value 528.7 625.7 $400 million Senior unsecured notes Carrying value $ 400.0 400.0 Fair value 369.0 414.8 Pricing inputs for nonpublic debt are often not observable. The fair value estimates of our senior notes reflect unobservable estimates and assumptions, which we have categorized as a Level 3 valuation. Our fair value estimates were based on the present value of future cash flows, discounted at rates for public debt at the measurement date. The rates for public debt were additionally adjusted for a factor which represented the change in the interest spreads between the inception rates and the public debt rates at the measurement date. Forward and Swap Contracts We have outstanding foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies. 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 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, 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) as follows: Twelve Months Ended December 31, (In millions) 2022 2021 2020 Derivative instrument gains (losses) included in other operating income (expense) $ 42.0 24.2 ( 3.0 ) Derivative instrument losses included in other nonoperating income (expense) (a) — — ( 7.0 ) (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. Accordingly, changes in the fair value of the cash flow hedge are initially recorded in the gains (losses) on cash flow hedges component of accumulated other comprehensive income (loss). We immediately reclassify from accumulated other comprehensive income (loss) to earnings an amount to offset the remeasurement recognized in earnings associated with the respective intercompany loan. Additionally, we reclassify amounts from accumulated other comprehensive income (loss) to interest expense amounts that are associated with the interest rate differential between a U.S. dollar denominated intercompany loan and a Brazilian real denominated intercompany loan. 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. 103 Amounts under this contract were recognized in other operating income (expense) to offset transaction gains or losses and in interest expense as follows: Twelve Months Ended December 31, (In millions) 2022 2021 2020 Derivative instrument gains included in other operating income (expense) $ ( 8.9 ) 0.2 22.1 Offsetting transaction gains 8.9 ( 0.2 ) ( 22.1 ) Derivative instrument losses included in interest expense ( 1.3 ) ( 1.3 ) ( 1.9 ) Net derivative instrument gains (losses) ( 10.2 ) ( 1.1 ) 20.2 In the first quarter of 2019, we entered into ten interest rate swaps that hedge cash flow risk associated with changes in variable interest rates and that are 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 $ 400 million with a remaining weighted-average maturity of 0.6 years. 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. 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. 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. At 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. At 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. As net investment hedges for accounting purposes, we elected to use the spot method to assess effectiveness for these derivatives that are designated as net investment hedges. Accordingly, changes in fair value attributable to changes in the undiscounted spot rates are recorded in the foreign currency translation adjustments component of accumulated other comprehensive income (loss) and will remain there until the hedged net investments are sold or substantially liquidated. 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. 104 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 included in interest expense as follows: Twelve Months Ended December 31, (In millions) 2022 2021 2020 Interest rate swaps designated as cash flow hedges $ 2.2 9.8 7.7 Cross currency swaps designated as net investment hedges ( 5.8 ) ( 4.1 ) — 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 In the second quarter of 2020, we acquired cash management operations in Malaysia from U.K.-based G4S and have recorded a payable for contingent consideration. The contingent consideration will be paid when minimum dividend distributions are received by Brink's relating to cash on the balance sheets of the Malaysia subsidiaries as of the acquisition date. We used a probability-weighted approach to estimate the fair value of the contingent consideration. 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 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 Other financial instruments include cash and cash equivalents, accounts receivable, floating rate debt, accounts payable and accrued liabilities. The financial statement carrying amounts of these items approximate the fair value. There were no transfers in or out of any of the levels of the valuation hierarchy in 2022. 105 Note 13 - Accrued Liabilities December 31, (In millions) 2022 2021 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 Cash held by cash management services operations (a) 85.2 34.7 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 matter (b) 10.2 8.8 OASDI Tax (CARES Act) Liability — 10.7 Other 210.8 174.8 Accrued liabilities $ 1,019.4 877.3 (a) Title to cash received and processed in certain of our secure cash management services operations transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we record a liability while the cash is in our possession. (b) See Note 23 for more information on the Chile antitrust matter. Note 14 - Other Liabilities December 31, (In millions) 2022 2021 Workers’ compensation and other claims $ 72.6 74.5 Asset retirement and remediation obligations 31.9 27.4 Acquisition-related obligations 21.5 24.3 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 Other liabilities $ 224.6 210.9 106 Note 15 - Debt December 31, (In millions) 2022 2021 Debt: Short-term borrowings Other (year-end weighted-average interest rate of 4.3 % in 2022 and 6.7 % in 2021) $ 47.2 9.8 Total short-term borrowings $ 47.2 9.8 Long-term debt Bank credit facilities: 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 $ 1,377.4 1,224.7 Senior unsecured notes (year-end effective interest rate of 4.6 % and 5.5 % respectively for "2017 Senior Notes" and "2020 Senior Notes" in 2022 and 2021) less unamortized issuance cost of $ 7.9 million in 2022 and $ 10.2 million in 2021 992.1 989.8 Revolving Credit Facility (year-end weighted average interest rate of 5.5 % in 2022 and 2.5 % in 2021) 646.9 495.0 Other facilities (year-end weighted- average interest rate of 4.8 % in 2022 and 1.6 % in 2021) (a) 147.0 68.9 Financing leases (year-end weighted-average interest rate of 5.5 % in 2022 and 4.4 % in 2021) 192.2 178.5 Total long-term debt $ 3,355.6 2,956.9 Total Debt $ 3,402.8 2,966.7 Included in: Current liabilities $ 129.6 125.0 Noncurrent liabilities 3,273.2 2,841.7 Total debt $ 3,402.8 2,966.7 (a) Other facilities includes $ 106.8 million related to the Brink’s Capital credit facility at December 31, 2022, compared to $ 57.5 million at December 31, 2021. The facility had $ 5,339.4 million in borrowings and $ 5,290.1 million in repayments in 2022, which is reflected in the long-term revolving credit facilities movement in the consolidated statements of cash flows. Long-Term Debt Senior Secured Credit Facility 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"). 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. As of December 31, 2022, $ 353 million was available under the Revolving Credit Facility. The obligations under the Senior Secured Credit Facility are secured by a first-priority lien on all or substantially all of the assets of the Company and certain of its domestic subsidiaries, including a first-priority lien on equity interests of certain of the Company’s direct and indirect subsidiaries. The Company and certain of its domestic subsidiaries also guarantee the obligations under the Senior Secured Credit Facility. 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. We also pay an annual commitment fee on the unused portion of the Revolving Credit Facility based on the Company’s total net leverage ratio. The commitment fee, which can range from 0.15 % to 0.28 %, was 0.23 % as of December 31, 2022. Senior Unsecured Notes In June 2020, we issued at par five-year senior unsecured notes (the "2020 Senior Notes") in the aggregate principal amount of $ 400 million. The 2020 Senior Notes will mature on July 15, 2025 and bear an annual interest rate of 5.5 %. The 2020 Senior Notes are general unsecured obligations guaranteed by certain of the Company’s existing and future U.S. subsidiaries, which are also guarantors under the Senior Secured Credit Facility. 107 In October 2017, we issued at par ten-year senior unsecured notes (the "2017 Senior Notes" and together with the 2020 Senior Notes, the "Senior Notes") in the aggregate principal amount of $ 600 million. The 2017 Senior Notes will mature on October 15, 2027, bearing an annual interest rate of 4.625 %. The 2017 Senior Notes are general unsecured obligations guaranteed by certain of the Company’s existing and future U.S. subsidiaries, which are also guarantors under the Senior Secured Credit Facility. The Senior Notes have not been and will not be registered under the Securities Act of 1933 (the “Securities Act”) or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Senior Notes were offered in the United States only to persons reasonably believed to be qualified institutional buyers in reliance on the exception from registration set forth in Rule 144A under the Securities Act and outside the United States to non-U.S. 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 certain transactions. Borrowings were used for working capital needs, capital expenditures, acquisitions and other general corporate purposes. The aggregate proceeds from the 2020 Senior Notes were used in part to repay certain existing indebtedness incurred in connection with the G4S acquisition, finance the remaining G4S acquisition transactions and pay certain fees and expenses related to the transactions. Remaining net proceeds from the 2020 Senior Notes were used for working capital needs, capital expenditures, acquisitions and other general corporate purposes. Letter of Credit and Bank Guarantee Facilities We have three committed letters of credit facilities totaling $ 70 million, of which approximately $ 12 million was available at December 31, 2022. At December 31, 2022, we had undrawn letters of credit and guarantees of $ 58 million issued under these facilities. The $ 15 million facility expires in April 2025. 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. Minimum repayments of long-term debt are as follows: (In millions) Financing leases Other long-term debt Total 2023 $ 43.0 39.4 82.4 2024 45.3 59.6 104.9 2025 36.6 592.5 629.1 2026 28.2 74.3 102.5 2027 15.9 2,404.9 2,420.8 Later years 23.2 5.7 28.9 Total $ 192.2 3,176.4 3,368.6 The Senior Secured Credit Facility, Senior Unsecured Notes, the letter of credit facilities and bank guarantee facilities contain various financial and other covenants. The financial covenants, among other things, limit our ability to provide liens, restrict fundamental changes, limit transactions with affiliates and unrestricted subsidiaries, restrict changes to our fiscal year and to organizational documents, limit asset dispositions, limit the use of proceeds from asset sales, limit sale and leaseback transactions, limit investments, limit the ability to incur debt, restrict certain payments to shareholders, limit negative pledges, limit the ability to change the nature of our business, provide for a maximum consolidated net leverage ratio and provide for minimum coverage of interest costs. If we were not to comply with the terms of our various financing agreements, the repayment terms could be accelerated and the commitments could be withdrawn. An acceleration of the repayment terms under one agreement could trigger the acceleration of the repayment terms under the other financing agreements. We were in compliance with all covenants at December 31, 2022. 108 Financing Leases Property and equipment acquired under financing leases are included in property and equipment as follows: December 31, (In millions) 2022 2021 Asset class: Buildings $ 6.3 6.5 Vehicles 332.9 300.7 Machinery and equipment 49.5 43.8 388.7 351.0 Less: accumulated amortization ( 170.8 ) ( 144.5 ) Total $ 217.9 206.5 109 Note 16 - Accounts Receivable and Credit Losses Accounts receivable December 31, (In millions) 2022 2021 Trade $ 759.5 622.8 Other 141.0 95.9 Total accounts receivable 900.5 718.7 Allowance for doubtful accounts ( 38.3 ) ( 16.9 ) Accounts receivable, net $ 862.2 701.8 Credit losses 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. We typically invoice our customers on a monthly basis and payment terms are generally between 30 and 60 days. 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 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 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. 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 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: Years Ended December 31, (In millions) 2022 2021 2020 Allowance for doubtful accounts: Beginning of year $ 16.9 30.7 30.2 Cumulative effect of change in accounting principle — — 2.3 Provision for uncollectible accounts receivable (a) 22.3 3.4 14.6 Write offs and recoveries ( 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 2022 and 2021 and a $ 13.1 million allowance in 2020 related to the internal loss in our U.S. global services operations. See Note 1 for details. 110 Note 17 - Leases 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 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. Variable costs, such as inflation adjusted payments for facilities, or nonlease components that vary periodically (included as part of the component election), are expensed as incurred. Our leases do not contain any material residual value guarantees or material restrictive covenants. The components of lease assets and liabilities were as follows: December 31, (In millions) Balance sheet classification 2022 2021 Assets: Operating lease assets Right-of-use assets, net $ 314.5 $ 299.1 Finance lease assets Property and equipment, net 217.9 206.5 Total leased assets $ 532.4 $ 505.6 Liabilities: Current: Operating Accrued liabilities $ 74.7 $ 77.3 Financing Current maturities of long-term debt 43.0 43.0 Noncurrent: Operating Lease liabilities 249.9 241.8 Financing Long-term debt 149.2 135.5 Total lease liabilities $ 516.8 $ 497.6 The components of lease expense were as follows: Years Ended December 31, (In millions) 2022 2021 2020 Operating lease cost (a) $ 133.6 $ 149.4 $ 131.4 Short-term lease cost 28.9 21.2 18.9 Finance lease cost: Amortization of related assets 37.9 38.3 28.2 Interest on related liabilities 10.1 9.5 7.1 Total lease cost $ 210.5 $ 218.4 $ 185.6 (a) Includes variable lease costs, which are immaterial. 111 Other information related to leases was as follows: Years Ended December 31, (In millions, except for lease term and discount rate) 2022 2021 2020 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 106.1 $ 96.5 $ 100.4 Operating cash flows from finance leases 10.1 9.5 7.1 Financing cash flows from finance leases 48.2 43.0 34.8 Right-of-use assets obtained in exchange for lease obligations: Operating leases 101.0 54.0 123.6 Finance leases 65.7 85.9 37.9 Weighted Average Remaining Lease Term Operating leases 6.3 years 6.7 years 7.2 years Finance leases 4.7 years 4.8 years 4.5 years Weighted Average Discount Rate Operating leases 6.5 % 6.4 % 6.6 % Finance leases 5.5 % 4.4 % 4.9 % As of December 31, 2022, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows: (In millions) Facilities Vehicles Other Total 2023 $ 66.6 10.0 14.7 91.3 2024 59.0 4.7 11.4 75.1 2025 47.7 2.7 6.7 57.1 2026 39.3 1.3 4.5 45.1 2027 30.8 0.6 1.9 33.3 Later years 100.9 0.9 — 101.8 Total Lease Payments $ 344.3 20.2 39.2 403.7 Less: Interest 73.8 1.5 3.8 79.1 Present value of lease liabilities $ 270.5 $ 18.7 35.4 324.6 As of December 31, 2022, minimum repayments of long-term debt under financing leases were as follows: (In millions) 2023 $ 43.0 2024 45.3 2025 36.6 2026 28.2 2027 15.9 Later years 23.2 Total $ 192.2 112 Note 18 - Share-Based Compensation Plans 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"). These plans permit grants of restricted stock, restricted stock units, performance stock, performance units, stock appreciation rights, stock options, as well as other share-based awards to eligible employees. The 2013 Plan and the 2017 Plan also permit cash awards to eligible employees. The 2017 Plan became effective May 2017. No further grants of awards will be made under the 2013 Plan, although awards previously granted remain outstanding. We also have outstanding deferred stock units granted to directors under the 2017 Plan. Share-based awards were previously granted to directors and remain outstanding under the Non-Employee Director's Equity Plan and the Directors’ Stock Accumulation Plan, which has expired. There are 3.6 million shares underlying the 2017 Plan that are authorized, but not yet granted. Outstanding awards at December 31, 2022, include performance share units, restricted stock units, deferred stock units, performance-based stock options, time-based stock options and certain awards that will be settled in cash. Compensation Expense Compensation expense is measured using the fair-value-based method. 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 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 expenses are classified as selling, general and administrative expenses in the consolidated statements of operations. Compensation expenses for the last three years and the amount of unrecognized expense for awards outstanding at December 31, 2022, were as follows: Compensation Expense Unrecognized Expense for Nonvested Awards at Weighted-average No. of Years Unrecognized Expense to be Recognized Years Ended December 31, Dec 31, 2022 (in millions except years) 2022 2021 2020 Performance share units $ 34.9 22.3 20.2 $ 22.5 1.6 Restricted stock units 12.0 8.5 6.0 8.5 1.6 Deferred stock units and fees paid in stock 1.3 1.3 1.2 0.4 0.4 Performance-based options — 0.3 2.3 — 0.0 Time-based options 0.4 0.7 1.6 — 0.1 Cash based awards 1.3 1.0 1.4 1.8 1.7 Share-based payment expense 49.9 34.1 32.7 Income tax benefit ( 11.5 ) ( 8.1 ) ( 7.4 ) Share-based payment expense, net of tax $ 38.4 26.0 25.3 113 Value of Distributed or Exercised Awards The value of shares distributed or options exercised in the last three years is as follows: Value of Shares Distributed or Exercised (a) Years Ended December 31, (in millions) 2022 2021 2020 Performance share units $ 10.0 17.7 33.3 Restricted stock units 9.2 5.8 6.9 Deferred stock units and fees paid in stock 0.6 2.8 0.6 Performance-based options (a) 15.2 0.4 0.5 Time-based vesting options (a) — — — Total $ 35.0 26.7 41.3 Income tax benefit realized $ 8.1 6.1 9.0 (a) Intrinsic value for options. Restricted Stock Units (“RSUs”) We granted RSUs to select senior executives and employees in the last three years that contain only a service condition. RSUs are paid out in shares of Brink’s stock when the awards vest. 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 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. The weighted-average fair value per share at grant date was $ 64.30 in 2022, $ 78.35 in 2021 and $ 70.85 in 2020. The weighted-average discount was approximately 2 % in each of 2022, 2021 and 2020. The following table summarizes RSU activity during 2022: Shares (in thousands) Weighted-Average Grant Date Fair Value Per Share Nonvested balance as of December 31, 2021 251.1 $ 74.37 Activity from January 1 to December 31, 2022: Granted 247.4 64.30 Forfeited ( 39.3 ) 70.21 Vested ( 149.9 ) 73.53 Nonvested balance as of December 31, 2022 309.3 $ 67.25 Performance Share Units (“PSUs”) We granted Internal Metric PSUs ("IM PSUs") and Total Shareholder Return PSUs ("TSR PSUs") to certain senior executives and employees in the last three years. IM PSUs contain a performance condition as well as a service condition. 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 will be paid out in shares of Brink’s stock when the awards vest. For the IM PSUs granted in 2022, 2021 and 2020, the number of shares paid out ranges from 0 % to 200 % of an employee’s award, depending on the achievement of pre-established financial goals over the performance period. Shares are not paid out if the financial results do not meet a pre-established threshold level of performance. TSR PSUs contain a market condition as well as a service condition. We measure the fair value of TSR PSUs at the grant date using a Monte Carlo simulation model. TSR PSUs granted have a three year performance period and typically vest at the end of three years . TSR PSUs are paid out in shares of Brink’s stock when the awards vest. The number of shares paid out ranges from 0 % to 200 % of an employee's award depending on Brink's relative TSR rank among a selected peer group. 114 The following table summarizes all PSU activity during 2022: Shares (in thousands) Weighted-Average Grant Date Fair Value Per Share Nonvested balance as of December 31, 2021 661.0 $ 81.75 Activity from January 1 to December 31, 2022: Granted 290.4 67.03 Forfeited or expired (a) ( 82.5 ) 81.94 Vested (b) ( 142.9 ) 77.61 Nonvested balance as of December 31, 2022 726.0 $ 76.66 (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 2022 TSR PSUs 2021 TSR PSUs 2020 TSR PSUs Terms of awards: Performance period Jan. 1, 2022 to Jan. 1, 2021 to Jan. 1, 2020 to Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2022 Weighted-average assumptions used to estimate fair value: Expected dividend yield (a) 1.2 % 0.8 % 0.7 % Expected stock price volatility (b) 48.5 % 48.9 % 29.6 % Risk-free interest rate (c) 1.8 % 0.2 % 1.4 % Contractual term in years 2.8 2.9 2.9 Weighted-average fair value estimates at grant date: In millions $ 3.4 $ 2.7 $ 3.6 Fair value per share $ 87.31 $ 103.83 94.53 (a) TSR is determined assuming that dividends are reinvested. The stock price projection in the Monte Carlo simulation model assumed a 0 % dividend yield, which is mathematically equivalent to reinvesting dividends over the performance period. For the valuation of the TSR PSU, because the holders of the awards have no rights to any dividend paid during the vesting period, we applied a dividend yield in the Monte Carlo simulation model to reduce the projected stock price as of the grant date. (b) The expected stock price volatility was calculated on the grant date for the most recent term equivalent to the contractual term in years. (c) The risk-free interest rate on each date of grant is the rate for a zero-coupon U.S. Treasury bill that was commensurate with the grant date contractual term. 115 Options Prior to 2019, we granted primarily performance-based stock options to select senior executives. These performance-based awards have a service condition as well as a market condition. We measure the fair value of these awards at the grant date using a Monte Carlo simulation model. No performance-based options were granted after 2018. In 2020, 2019 and 2017, we granted time-based vesting stock options to certain senior executives. We measure the fair value of these awards at the grant date using the Black-Scholes-Merton option pricing model. When vested, options entitle the holder to purchase a specified number of shares of Brink’s stock at a price set at the date the options were granted. The option price for Brink’s options was equal to the market price of Brink’s stock on the award date. Options granted to employees have a maximum term of six years . Performance-Based Option Activity The table below summarizes the activity associated with grants of performance-based options: Shares (in thousands) Weighted- Average Exercise Price Per Share Weighted-Average Grant Date Fair Value Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (a) (in millions) Outstanding at December 31, 2021 (b) 946.5 $ 45.36 $ 10.25 Forfeited or expired ( 15.3 ) 73.45 17.92 Exercised (b) ( 485.0 ) 29.87 5.91 Outstanding at December 31, 2022 (b) 446.2 $ 61.23 $ 14.70 0.5 $ 0.3 Of the above, as of December 31, 2022: Exercisable 446.2 $ 61.23 0.5 $ 0.3 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. The market price at December 31, 2022 was $ 53.71 . (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. (c) At December 31, 2022, all outstanding performance options were vested. Time-based Vesting Option Activity The table below summarizes the activity associated with grants of time-based vesting options: Shares (in thousands) Weighted- Average Exercise Price Per Share Weighted-Average Grant Date Fair Value Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (a) (in millions) 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: Exercisable 102.7 $ 79.26 2.1 $ — Expected to vest in future periods (c) 58.9 $ 84.39 3.1 $ — (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. 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, 2021 and December 31, 2020. (c) The number of options expected to vest takes into account an estimate of expected forfeitures. We currently have applied a 5 % expected forfeiture rate to the time-based vesting options. 116 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 Assumptions used to estimate fair value: Expected dividend yield (a) 0.7 % Expected stock price volatility (b) 29.7 % Risk-free interest rate (c) 1.3 % Expected term in years (d) 4.5 Weighted-average fair value estimates at grant date: In millions $ 1.7 Fair value per share $ 21.10 (a) The expected dividend yield is the calculated annual yield on Brink's stock at the time of the grant. (b) The expected stock price volatility was calculated at time of the grant after reviewing the historic volatility of our stock using daily close prices. (c) The risk-free interest rate at each grant date was the rate for a zero-coupon U.S. Treasury bill that was commensurate with the expected life of 4.5 years. (d) The expected term of the options was based on historical exercise, expiration and post-cancellation behavior. Deferred Stock Units (“DSUs”) 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. DSUs granted after 2014 will be paid out in shares of Brink's stock on the first anniversary of the grant date, provided that the director has not elected to defer the distribution of shares until a later date. DSUs granted prior to 2015, in general, will be paid out in shares of stock following separation from service. The following table summarizes all DSU activity during 2022: Shares (in thousands) Weighted-Average Grant-Date Fair Value Nonvested balance as of December 31, 2021 14.3 $ 78.74 Activity from January 1 to December 31, 2022: Granted 19.7 54.74 Forfeited — — Vested ( 14.3 ) 78.76 Nonvested balance as of December 31, 2022 19.7 $ 54.74 The weighted-average grant-date fair value estimate per share for DSUs granted was $ 54.74 in 2022, $ 79.04 in 2021 and $ 40.46 in 2020. Other Share-Based Compensation We have a deferred compensation plan that allows participants to defer a portion of their compensation into stock units. Units will be redeemed by employees for an equal number of shares of Brink’s stock. Employee deferred compensation accounts held 150,970 units at December 31, 2022, and 173,652 units at December 31, 2021. We have a stock accumulation plan for our non-employee directors that, prior to 2014, provided for awards of stock units. Additionally, some fees paid to our directors are in the form of stock and may be deferred for distribution to a later date. Directors’ deferred compensation accounts held 19,583 units at December 31, 2022, and 18,148 units at December 31, 2021. 117 Note 19 - Capital Stock Common Stock At December 31, 2022, we had 100 million shares of common stock authorized and 46.3 million shares issued and outstanding. Dividends We paid regular quarterly dividends on our common stock during the last three years. 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 At December 31, 2022, we had the authority to issue up to 2.0 million shares of preferred stock with a par value of $ 10 per share. Share Repurchase Program 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. The timing and volume of share repurchases may be executed at the discretion of management on an opportunistic basis, or pursuant to trading plans or other arrangements. Share repurchases under this program may be made in the open market, in privately negotiated transactions, or otherwise. 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. In each case, in exchange for an upfront payment at the beginning of each purchase period, the financial institution delivered to us shares of our common stock. The shares received were retired in the period they were delivered to us, and the upfront payment was accounted for as a reduction to shareholders' equity in the consolidated balance sheet. For purposes of calculating earnings per share, we reported each ASR as a repurchase of our common stock and as a forward contract indexed to our common stock. Each ASR met the applicable criteria for equity classification, and, as a result, none were accounted for as a derivative instrument. Below is a summary of each ASR entered into under the 2020 Repurchase Program: Upfront Payment Shares Received Average Repurchase Price August 2020 $ 50,000,000 849,978 $ 58.83 September 2020 — 246,676 — $ 50,000,000 1,096,654 $ 45.59 August 2021 $ 50,000,000 524,315 $ 95.36 September 2021 — 131,384 — $ 50,000,000 655,699 $ 76.25 November 2021 (a) $ 150,000,000 1,742,160 $ 86.10 April 2022 (a) — 546,993 — $ 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 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. 118 Shares Used to Calculate Earnings per Share Years Ended December 31, (In millions) 2022 2021 2020 Weighted-average shares Basic (a) 47.3 49.5 50.4 Effect of dilutive stock awards 0.5 0.6 0.4 Diluted (a) 47.8 50.1 50.8 Antidilutive stock excluded from denominator (b) 0.6 0.4 0.6 (a) We have deferred compensation plans for directors and certain of our employees. Some amounts owed to participants are denominated in common stock units. Each unit represents one share of common stock. The number of shares used to calculate basic earnings per share includes the weighted-average common stock units credited to employees and directors under the deferred compensation plans. Additionally, nonvested units containing only a service requirement are also included in the computation of basic weighted-average shares when the requisite service period has been completed. 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 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. 119 Note 20 - Supplemental Cash Flow Information Years Ended December 31, (In millions) 2022 2021 2020 Cash paid for: Interest $ 117.5 107.7 80.4 Income taxes, net 127.8 83.8 76.8 Argentina Currency Conversions We have elected in the past and could continue in the future to repatriate cash from Brink's Argentina using different means to convert Argentine pesos into U.S. dollars. 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. 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. 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 and 2022. Argentina Marketable Securities 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. At the time of any future sale of these financial instruments, proceeds received will be solely in Argentine pesos. Non-cash Investing and Financing Activities 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. 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. These payments are reported as cash outflows from financing activities as the payments were made more than three months after the acquisition date. Restricted Cash (Cash Supply Chain Services) In France, we offer services to certain of our customers where we manage some or all of their cash supply chains. Providing this service requires our French subsidiary to take temporary title to the cash received from the management of our customers' cash supply chains until the cash is returned to the customers. 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. Prior to the third quarter of 2020, as part of this service offering, we entered into lending arrangements with some of our customers. Cash borrowed under these lending arrangements was used in the process of managing these customers' cash supply chains, was restricted and could not be used for any other purpose other than to service these customers. In Malaysia, we offer ATM replenishment services to certain of our financial institution customers. Providing this service requires our Malaysia subsidiary to take temporary title to the cash received in advance of ATM replenishment. 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 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). At December 31, 2021, we held $ 376.4 million of restricted cash ($ 215.5 million represented restricted cash held for customers and $ 139.9 million represented accrued liabilities). 120 The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. December 31, (In millions) 2022 2021 Cash and cash equivalents $ 972.0 710.3 Restricted cash 438.5 376.4 Total, cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 1,410.5 1,086.7 121 Note 21 - Other Operating Income (Expense) Years Ended December 31, (In millions) 2022 2021 2020 Foreign currency items: Transaction losses (a) $ ( 68.7 ) ( 30.5 ) ( 11.2 ) Derivative instrument gains (losses) 42.0 24.2 ( 3.0 ) Royalty income 9.1 5.6 4.8 Impairment losses ( 9.0 ) ( 9.5 ) ( 11.6 ) Indemnification asset adjustments (b) ( 7.8 ) — — 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 Insurance recoveries - Internal Loss (c) — 18.8 — Gains related to litigation (d) — 4.4 — Indemnity for forced relocation (e) — 1.7 — Other 4.3 4.2 3.7 Other operating income (expense) $ ( 25.3 ) 20.0 ( 15.6 ) (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) Post-acquisition adjustments to indemnification assets recognized in previous business acquisitions. (c) See details of the Internal Loss at Note 1. (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. 122 Note 22 - Interest and Other Nonoperating Income (Expense) Years Ended December 31, (In millions) 2022 2021 2020 Interest income $ 23.6 12.1 5.6 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 ) Non-income taxes on intercompany billings (b) ( 2.3 ) ( 3.9 ) ( 4.6 ) Argentina turnover tax ( 1.8 ) — — Gain (loss) on equity securities (c) — 16.0 10.6 G4S indemnification asset adjustment (d) — 2.7 — Penalties and interest on non-income taxes (e) — ( 1.8 ) — Gains related to litigation (f) — 1.7 — Earn-out liability adjustment (g) — 1.3 — Interest on non-income tax credits (h) — 1.2 — Derivative instrument losses (i) — — ( 7.0 ) Gain on a disposition of a subsidiary (j) — — 4.1 Other ( 1.5 ) 2.0 ( 4.9 ) Interest and other nonoperating income (expense) $ 3.7 ( 7.0 ) ( 37.7 ) (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. (c) The gain is primarily related to the market value increase of an investment in MoneyGram International, Inc. The investment was sold in 2021 and the gain was fully realized. (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) 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. The principal amount of the settlement is reported in operating income (expense). 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. 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. (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. 123 Note 23 - Other Commitments and Contingencies In August 2020, the Company received a subpoena issued in connection with an investigation being conducted by the U.S. Department of Justice (the “DOJ”). 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. Accordingly, no accruals have been made with respect to this matter. At the end of the fourth quarter of 2018, we became aware of an investigation initiated by the Chilean Fiscalía Nacional Económica (the Chilean antitrust agency) (“FNE”) related to potential anti-competitive practices among competitors in the cash logistics industry in Chile. 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 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. We are not able to estimate the loss or range of losses for some of these matters. We have recorded accruals for losses that are considered probable and reasonably estimable. Except as otherwise noted, we do not believe that it is reasonably possible the ultimate disposition of any of the lawsuits currently pending against the Company could have a material adverse effect on our liquidity, financial position or results of operations. At December 31, 2022, we had noncancellable commitments for $ 10.8 million in equipment purchases, and information technology and other services. 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 $ 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. 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. 124 The following table summarizes the costs incurred, payments and utilization, and foreign currency exchange effects of other restructurings: (In millions) Severance Costs Other Total Balance as of December 31, 2020 $ 9.3 — 9.3 Expense 37.6 6.0 43.6 Payments and utilization ( 35.3 ) ( 6.0 ) ( 41.3 ) 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 Payments and utilization ( 18.2 ) ( 5.4 ) ( 23.6 ) Accrual adjustment ( 4.3 ) — ( 4.3 ) Foreign currency exchange effects ( 1.3 ) — ( 1.3 ) Balance as of December 31, 2022 $ 2.7 — 2.7 125 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.