BRINKS CO 10-Q

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Brink’s Company (along with its subsidiaries, “Brink’s”, the “Company”, “we”, “us” or “our”) is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services throughout the world. These services include: Cash and Valuables Management ("CVM") • Cash-in-transit ("CIT") services – armored vehicle transportation of cash and coin • Basic ATM services – replenishing funds and providing basic maintenance services to our customers’ automated teller machines • Brink's Global Services ("BGS") – secure international transportation, pick-up, packaging, customs clearance, secure vault storage, and inventory management of high-value commodities • Cash management services – counting, sorting, wrapping, check imaging, cashier balancing, counterfeit detection, account consolidation and electronic reporting • Vaulting services – combines cash-in-transit services, cash management, vaulting and electronic reporting technologies for banks • Other Services – guarding, commercial security, and payment services Digital Retail Solutions ("DRS"), and ATM Managed Services ("AMS") • DRS – services that facilitate faster access to cash deposits leveraging Brink’s tech-enabled devices and software platforms that enable enhanced customer analytics and visibility • AMS – comprehensive solutions for ATM management, including cash forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, and installation services 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 an operating profit or loss measure, excluding corporate expenses and other items not allocated to segments. We manage our business in the following four segments: • North America – operations in the U.S. and Canada, including the BGS line of business, • Latin America – operations in Latin American countries where we have an ownership interest, including the BGS line of business, • 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. 36 RESULTS OF OPERATIONS Consolidated Review Three Months Ended September 30, % Nine Months Ended September 30, % (In millions, except for percentages and per share amounts) 2024 2023 Change 2024 2023 Change GAAP Revenues $ 1,258.5 1,227.4 3 $ 3,747.7 3,629.0 3 Cost of revenues 943.6 921.0 2 2,808.6 2,785.1 1 Selling, general and administrative expenses 202.3 170.0 19 597.2 517.6 15 Operating profit 111.6 137.7 (19) 348.5 323.1 8 Operating profit margin 8.9 % 11.2 % unfav 9.3 % 8.9 % fav Income from continuing operations (a) 28.9 45.7 (37) 124.5 92.2 35 Diluted EPS from continuing operations (a) 0.65 0.97 (33) 2.77 1.95 42 Non-GAAP (b) Non-GAAP operating profit $ 151.6 166.3 (9) $ 452.2 425.5 6 Non-GAAP operating profit margin 12.0 % 13.5 % unfav 12.1 % 11.7 % fav Non-GAAP income from continuing operations (a) 67.6 97.5 (31) 212.7 217.9 (2) Adjusted EBITDA 216.8 230.5 (6) 660.9 615.3 7 Non-GAAP diluted EPS from continuing operations (a) 1.51 2.07 (27) 4.73 4.61 3 (a) Amounts reported in this table are attributable to the shareholders of Brink’s and exclude earnings related to noncontrolling interests. (b) These measures are supplemental financial measures that are not required by, or presented in accordance with, GAAP. See page 50 for further information on these non-GAAP measures. and reconciliations to the applicable GAAP measures GAAP Basis Analysis of Consolidated Results: Third Quarter 2024 versus Third Quarter 2023 Consolidated Revenues Revenues increased $31.1 million due to organic increases in Latin America ($117.1 million), Europe ($22.9 million), North America ($10.4 million), and Rest of World ($5.4 million) and the favorable impact of acquisitions ($6.5 million), partially offset by the unfavorable impact of currency exchange rates ($131.2 million). The unfavorable currency impact was driven primarily by the Argentine peso. Revenues increased 13% on an organic basis primarily due to inflation-based price increases and organic growth in AMS and DRS revenue. See our definition of “organic growth” on page 50 . Consolidated Costs and Expenses Cost of revenues increased 2% to $943.6 million primarily due to the impact of higher revenue partially offset by the impact of exchange rates. Selling, general and administrative costs increased 19% to $202.3 million primarily due to organic increases in labor costs and costs related to transformation initiatives, partially offset by the impact of currency exchange rates and lower acquisition and restructuring related costs. Consolidated Operating Profit and Operating Profit Margin Operating profit margin decreased from 11.2% to 8.9%. Operating profit decreased $26.1 million due mainly to: • unfavorable changes in currency exchange rates ($50.7 million), driven by the Argentine peso, • higher corporate expenses on an organic basis ($13.2 million), • transformation initiative costs ($9.5 million), and • an organic decrease in North America ($6.3 million), partially offset by: • organic increases in Latin America ($47.7 million), Europe ($3.8 million), and Rest of World ($1.0 million). Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders decreased $16.8 million to $28.9 million due to the decrease in operating profit mentioned above and higher interest expense ($9.2 million), partially offset by lower income tax expense ($10.1 million), higher interest and other nonoperating income ($7.6 million) and lower noncontrolling interest ($0.8 million). Earnings per share from continuing operations was $0.65, down from $0.97 in the third quarter of 2023. Analysis of Consolidated Results: Nine Months 2024 versus Nine Months 2023 Consolidated Revenues Revenues increased $118.7 million due to organic increases in Latin America ($360.9 million), Europe ($65.6 million), North America ($24.3 million), and Rest of World ($17.3 million) and the favorable impact of acquisitions ($15.1 million), partially offset by the unfavorable impact of currency exchange rates ($364.5 million). The unfavorable currency impact was driven primarily by the Argentine peso. Revenues increased 13% on an organic basis primarily due to inflation-based price increases and organic growth in AMS and DRS revenue. See our definition of “organic growth” on page 50 . 37 Consolidated Costs and Expenses Cost of revenues increased 1% to $2,808.6 million primarily due to the impact of higher revenue partially offset by the impact of exchange rates. Selling, general and administrative costs increased 15% to $597.2 million primarily due to organic increases in labor costs and higher transformation initiative costs, partially offset by the impact of currency exchange rates. Consolidated Operating Profit and Operating Profit Margin Operating profit margin increased from 8.9% to 9.3%. Operating profit increased $25.4 million due mainly to: • organic increases in Latin America ($113.4 million), North America ($17.2 million), Europe ($10.3 million), and Rest of World ($4.1 million), • lower costs incurred related to reorganization and restructuring ($12.7 million), • lower costs incurred related to business acquisitions and dispositions ($9.8 million), and • lower corporate expenses on an organic basis ($2.6 million), partially offset by: • unfavorable changes in currency exchange rates ($114.8 million), driven by the Argentine peso, and • transformation initiative costs ($21.5 million). Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $32.3 million to $124.5 million due to the increase in operating profit mentioned above and higher interest and other nonoperating income ($24.6 million), lower income tax expense ($5.5 million) and lower noncontrolling interest ($0.6 million), partially offset by higher interest expense ($23.8 million) . Earnings per share from continuing operations was $2.77, up from $1.95 in the first nine months of 2023. Non-GAAP Basis Non-GAAP Financial Measures The non-GAAP measures included in the table above and the analysis below present our operating profit, operating profit margin, income from continuing operations and earnings per share without certain income and expense items that do not reflect the regular earnings of the Company's operations. These non-GAAP measures are described in more detail on page 50 and are reconciled to comparable GAAP measures on pages 52 - 54 . Analysis of Consolidated Results: Third Quarter 2024 versus Third Quarter 2023 Non-GAAP Consolidated Operating Profit and Non-GAAP Operating Profit Margin Non-GAAP operating profit margin decreased from 13.5% to 12.0%. Non-GAAP operating profit decreased $14.7 million due mainly to: • unfavorable changes in currency exchange rates ($48.2 million), driven primarily by the Argentine peso, • higher corporate expenses on an organic basis ($13.2 million), and • an organic decrease in North America ($6.3 million), partially offset by: • organic increases in Latin America ($47.7 million), Europe ($3.8 million), and Rest of World ($1.0 million) Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders decreased $29.9 million to $67.6 million due to the operating profit decrease mentioned above, lower interest and other nonoperating income ($12.6 million), and higher interest expense ($9.4 million), partially offset by lower income tax expense ($5.9 million), and lower noncontrolling interest ($0.9 million). Earnings per share from continuing operations was $1.51, down from $2.07 in the third quarter of 2023. Adjusted EBITDA Adjusted EBITDA decreased 6% to $216.8 million primarily due to the decrease in Non-GAAP operating profit ($14.7 million), excluding the impact of higher Non-GAAP depreciation and amortization ($2.8 million). Analysis of Consolidated Results: Nine Months 2024 versus Nine Months 2023 Non-GAAP Consolidated Operating Profit and Non-GAAP Operating Profit Margin Non-GAAP operating profit margin increased from 11.7% to 12.1%. Non-GAAP operating profit increased $26.7 million due mainly to: • organic increases in Latin America ($113.4 million), North America ($17.2 million), Europe ($10.3 million), and Rest of World ($4.1 million), and • lower corporate expenses on an organic basis ($2.6 million), partially offset by: • unfavorable changes in currency exchange rates ($122.0 million), driven primarily by the Argentine peso. Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders decreased $5.2 million to $212.7 million due to higher interest expense ($24.5 million) and higher income tax expense ($11.5 million), partially offset by the operating profit increase mentioned above, higher interest and other nonoperating income ($3.4 million), and lower noncontrolling interest ($0.7 million). Earnings per share from continuing operations was $4.73, up from $4.61 in the first nine months of 2023. 38 Adjusted EBITDA Adjusted EBITDA increased 7% to $660.9 million primarily due to the increase in Non-GAAP operating profit ($26.7 million), excluding the impact of higher depreciation and amortization ($9.3 million). 39 Revenues and Operating Profit by Segment: Third Quarter 2024 versus Third Quarter 2023 Organic Change (a) Impact of Acquisitions / Dispositions (b) Currency Effect (c) % Change (In millions, except for percentages) 3Q'23 3Q'24 Total Organic Growth (a) Revenues: North America $ 398.1 10.4 4.6 (0.5) 412.6 4 3 Latin America 339.6 117.1 — (135.7) 321.0 (5) 34 Europe 287.8 22.9 1.9 2.9 315.5 10 8 Rest of World 201.9 5.4 — 2.1 209.4 4 3 Segment revenues 1,227.4 155.8 6.5 (131.2) 1,258.5 3 13 Revenues $ 1,227.4 155.8 6.5 (131.2) 1,258.5 3 13 Operating profit: North America $ 47.5 (6.3) 0.3 — 41.5 (13) (13) Latin America 68.1 47.7 — (45.5) 70.3 3 70 Europe 35.8 3.8 0.2 0.3 40.1 12 11 Rest of World 42.6 1.0 — 0.2 43.8 3 2 Segment operating profit 194.0 46.2 0.5 (45.0) 195.7 1 24 Corporate expenses (d) (27.7) (13.2) — (3.2) (44.1) 59 48 Other items not allocated to segments (d) (28.6) (11.9) 3.0 (2.5) (40.0) 40 42 Operating profit $ 137.7 21.1 3.5 (50.7) 111.6 (19) 15 Amounts may not add due to rounding. (a) Organic change and organic growth are supplemental financial measures that are not required by, or presented in accordance with, GAAP, and are described in more detail on page 50 . (b) Amounts include the impact of prior year comparable period results for acquired and disposed businesses. This measure is not required by, or presented in accordance with, GAAP and is described in more detail on page 50 . (c) The amounts in the “Currency” column consist of the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. This measure is not required by, or presented in accordance with, GAAP and is described in more detail on page 50 . (d) See pages 42 - 44 for further information, where these items are discussed in more detail. Analysis of Segment Results: Third Quarter 2024 versus Third Quarter 2023 North America Revenues increased 4% ($14.5 million) due to a 3% organic increase ($10.4 million) and the impact of acquisitions ($4.6 million), partially offset by the unfavorable impact of currency exchange rates ($0.5 million). Organic revenue increased primarily due to price increases and growth in AMS and DRS revenue in the U.S., partially offset by lower BGS revenue. Operating profit decreased 13% ($6.0 million) due to a 13% organic decrease ($6.3 million) partially offset by the impact of acquisitions $0.3 million. The organic decrease was primarily driven by technology and operational investments that impacted labor and fleet productivity as well as the net impact of revenue mix. Latin America Revenues decreased 5% ($18.6 million) due to the unfavorable impact of currency exchange rates ($135.7 million) primarily from the Argentine and Mexican peso, largely offset by a 34% organic increase ($117.1 million). The organic increase was primarily driven by inflation-based price increases across the segment with a majority of the impact from Argentina, as well as growth in AMS and DRS revenue. Operating profit increased 3% ($2.2 million) primarily due to a 70% organic increase ($47.7 million), mostly offset by the unfavorable impact of currency exchange rates ($45.5 million). The organic increase was driven by inflation-based price increases which outpaced the impact of labor and other cost increases. Europe Revenues increased 10% ($27.7 million) due to an 8% organic increase ($22.9 million), the favorable impact of currency exchange rates ($2.9 million), and the impact of acquisitions ($1.9 million). Organic revenue increased primarily due to price increases and the growth of AMS and DRS revenue. Operating profit increased $4.3 million primarily due to an 11% organic increase ($3.8 million) driven by higher revenue outpacing the impact of labor and other cost increases across the segment, cost productivity, and the mix benefit of higher AMS and DRS revenue. Rest of World Revenues increased $7.5 million due to a 3% organic increase ($5.4 million) and the favorable impact of currency exchange rates ($2.1 million). Organic growth in the segment was primarily due to growth in DRS and AMS revenue offset by volume reductions in CVM revenue. Operating profit increased 3% ($1.2 million) primarily due to a 2% organic increase ($1.0 million). 40 Revenues and Operating Profit by Segment: Nine Months 2024 versus Nine Months 2023 Nine months ended September 30, 2023 Organic Change (a) Impact of Acquisitions / Dispositions (b) Currency Effect (c) Nine months ended September 30, 2024 % Change (In millions, except for percentages) Total Organic Growth (a) Revenues: North America $ 1,197.4 24.3 9.4 (1.0) 1,230.1 3 2 Latin America 989.0 360.9 — (362.5) 987.4 — 36 Europe 842.4 65.6 5.7 2.9 916.6 9 8 Rest of World 600.2 17.3 — (3.9) 613.6 2 3 Segment revenues 3,629.0 468.1 15.1 (364.5) 3,747.7 3 13 Revenues $ 3,629.0 468.1 15.1 (364.5) 3,747.7 3 13 Operating profit: North America $ 123.6 17.2 0.8 — 141.6 15 14 Latin America 200.6 113.4 — (117.5) 196.5 (2) 57 Europe 87.1 10.3 0.6 0.2 98.2 13 12 Rest of World 121.2 4.1 (0.3) (1.1) 123.9 2 3 Segment operating profit 532.5 145.0 1.1 (118.4) 560.2 5 27 Corporate expenses (d) (107.0) 2.6 — (3.6) (108.0) 1 (2) Other items not allocated to segments (d) (102.4) (18.3) 9.8 7.2 (103.7) 1 18 Operating profit $ 323.1 129.3 10.9 (114.8) 348.5 8 40 Amounts may not add due to rounding. See page 40 for footnote explanations. Analysis of Segment Results: Nine Months 2024 versus Nine Months 2023 North America Revenues increased 3% ($32.7 million) primarily due to a 2% organic increase ($24.3 million) and the impact of acquisitions ($9.4 million). Organic revenue increased primarily due to price increases and growth in AMS and DRS revenue in the U.S., partially offset by lower BGS revenue. Operating profit increased $18.0 million due to a 14% organic increase ($17.2 million) and the impact of acquisitions ($0.8 million). The organic increase was primarily driven by the net impact of revenue mix and cost productivity improvements from transformation initiatives in the U.S., partially offset by technology and operational investments in the third quarter that impacted labor and fleet productivity. Latin America Revenues decreased ($1.6 million) due to the unfavorable impact of currency exchange rates ($362.5 million), primarily from the Argentine peso, mostly offset by a 36% organic increase ($360.9 million). The organic increase was driven by inflation-based price increases across the segment with a majority of the impact from Argentina, as well as growth in AMS and DRS revenue. Operating profit decreased 2% ($4.1 million) due to the unfavorable impact of currency exchange rates ($117.5 million), mostly offset by a 57% organic increase ($113.4 million). The organic increase was driven by higher revenue which outpaced the impact of labor and other cost increases. Europe Revenues increased 9% ($74.2 million) due to an 8% organic increase ($65.6 million) and the favorable impact of acquisitions ($5.7 million). The organic increase was primarily due to price increases and the growth of AMS and DRS revenue. Operating profit increased 13% ($11.1 million), primarily due to a 12% organic increase ($10.3 million). The organic increase was primarily driven by higher revenue outpacing the impact of labor and other cost increases across the segment, cost productivity, and the mix benefit of higher AMS and DRS revenue. Rest of World Revenues increased 2% ($13.4 million) due to a 3% organic increase ($17.3 million), partially offset by the unfavorable impact of currency exchange rates ($3.9 million). Organic growth in the segment was primarily due to continued growth in AMS and DRS revenue and supplemented by growth in BGS revenue. Operating profit increased 2% ($2.7 million) due to a 3% organic increase ($4.1 million), partially offset by the unfavorable impact of currency exchange rates ($1.1 million). The organic increase was primarily due the increase in higher-margin revenue. 41 Analysis of Income and Expense Not Allocated to Segments Income and expenses not allocated to segments are reported either as “Corporate Expenses” or “Other Items not Allocated to Segments.” Corporate Expenses include costs to manage the global business and perform activities required by public companies as well as other items that are considered part of the Company's operations and revenue generating activities but are not considered when the chief operating decision maker ("CODM") evaluates segment results. Examples include corporate staff compensation, corporate headquarters costs, regional management costs, share-based compensation, and currency transaction gains and losses. Other Items not Allocated to Segments include income and expenses that are not necessary to operate our business in the ordinary course and are not considered when the CODM evaluates segment results. These include non-recurring as well as certain recurring costs and gains which are not considered to be part of the Company's operations and revenue generating activities. Each of the items in the “Other Items Not Allocated to Segments” table is excluded from non-GAAP operating profit. Corporate Expenses Three Months Ended September 30, % Nine Months Ended September 30, % (In millions, except for percentages) 2024 2023 change 2024 2023 change General, administrative and other expenses $ (48.2) (32.4) 49 $ (122.6) (122.3) — Foreign currency transaction gains 2.3 5.4 (57) 11.7 15.3 (24) Reconciliation of segment policies to GAAP 1.8 (0.7) fav 2.9 — — Corporate expenses $ (44.1) (27.7) 59 $ (108.0) (107.0) 1 Corporate expenses for the three months ended September 30 2024 increased $16.4 million compared to the prior year period. The higher costs primarily resulted from increased charges for insurance and security losses ($9.4 million), higher net compensation costs ($4.2 million), a reduction in currency transaction gains ($3.1 million) and higher technology costs ($2.6 million). Corporate expenses for the first nine months of 2024 increased $1.0 million versus the prior year period. This was primarily driven by higher net compensation costs ($6.5 million), higher technology costs ($4.9 million) and higher professional and audit fees ($2.6 million), mostly offset by lower charges related to insurance and security losses ($13.1 million). Other Items Not Allocated to Segments Three Months Ended September 30, % Nine Months Ended September 30, % (In millions, except for percentages) 2024 2023 change 2024 2023 change Reorganization and restructuring $ (0.4) (0.4) — $ (1.9) (14.6) (87) Acquisitions and dispositions (16.5) (19.4) (15) (47.2) (56.4) (16) Argentina highly inflationary impact (10.8) (8.1) 33 (23.8) (30.3) (21) Transformation initiatives (9.5) — unfav (21.5) — unfav Department of Justice investigation (1.7) — unfav (7.7) — unfav Chile antitrust matter (0.6) — unfav (1.1) (0.4) unfav Non-routine auto loss matter (0.5) — unfav (0.5) — unfav Reporting compliance — (0.7) (100) — (0.7) (100) Total Other items not allocated to segments $ (40.0) (28.6) 40 $ (103.7) (102.4) 1 42 Reorganization and Restructuring Costs associated with certain reorganization and restructuring actions are excluded from reported non-GAAP results. These items include primarily severance charges and asset impairment losses. The 2022 Global Restructuring Plan was designed to, among other things, enable growth, reduce costs and related infrastructure, and to mitigate the potential impact of external economic conditions in light of the COVID-19 pandemic. Other restructuring actions were primarily in response to the COVID-19 pandemic and a decision to exit a line of business in our Canada operating unit. Due to the unusual nature of the underlying events that led to these actions, the charges are not considered part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results. 2022 Global Restructuring Plan In the first quarter of 2023, management completed the review and approval of remaining actions included in the previously announced restructuring program across our global business operations. In total, we have recognized $34.2 million in charges under this program, including $1.0 million in the first nine months of 2024. The actions under this program were substantially completed in 2024. Severance actions from this restructuring plan reduced our global workforce by approximately 3,200 positions. Other Restructurings As a result of other restructuring actions, we recognized net costs of $4.6 million in the first nine months of 2023, primarily severance costs. We recognized $0.9 million in net costs in the first nine months of 2024. The actions were substantially completed in 2024. Charges related to these restructuring actions were excluded from the segments and corporate expenses as shown in the table below: Three Months Ended September 30, % Nine Months Ended September 30, % (In millions, except for percentages) 2024 2023 change 2024 2023 change Reportable Segments: North America $ 0.1 (0.3) fav $ (0.7) (4.3) (84) Latin America — (0.3) (100) (0.3) (4.3) (93) Europe (0.4) 0.2 unfav (0.9) (4.0) (78) Rest of World — — — — (0.7) (100) Total excluded from reportable segments (0.3) (0.4) (25) (1.9) (13.3) (86) Excluded from Corporate expenses (0.1) — unfav — (1.3) (100) Total Reorganization and Restructuring Costs $ (0.4) (0.4) — $ (1.9) (14.6) (87) Acquisitions and dispositions Certain acquisition and disposition items are not part of the Company's operations and revenue generating activities. These items include non-cash amortization expense for acquisition-related intangible assets, as well as integration, transaction, restructuring and certain compensation costs. All of the items are significantly impacted by the timing and nature of our acquisitions and dispositions, and many are inconsistent in amount and frequency. Management has excluded these amounts when evaluating internal performance. Therefore, we have not allocated these amounts to segment or Corporate results and have excluded these amounts from non-GAAP results. These items are described below: 2024 Acquisitions and Dispositions • Amortization expense for acquisition-related intangible assets was $43.8 million in the first nine months of 2024. • Net charges of $2.4 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions. • We recognized $0.5 million in charges in Argentina in the first nine months of 2024 for an inflation-adjusted labor increase to expected payments to union workers of the Maco Transportadora and Maco Litoral businesses (together, "Maco"). Although the Maco operations were acquired in 2017, formal antitrust approval was obtained in 2021, which triggered negotiation and approval of the expected payments in 2022. See Note 6 for details. • We incurred $0.5 million in integration costs in the first nine months of 2024. • Transaction costs related to business acquisitions were $0.6 million in the first nine months of 2024. • A net credit of $1.3 million related to the reversal of a retention liability for key PAI employees was recorded in the first nine months of 2024. 43 2023 Acquisitions and Dispositions • Amortization expense for acquisition-related intangible assets was $43.2 million in the first nine months of 2023. • We derecognized a contingent consideration liability related to the NoteMachine business acquisition and recognized a gain of $4.8 million. • We recognized $4.7 million in charges in Argentina in the first nine months of 2023 for an inflation-adjusted labor increase to expected payments to union workers of the Maco businesses. • Net charges of $3.4 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions. • We incurred $2.0 million in integration costs, primarily related to PAI, in the first nine months of 2023. • Transaction costs related to business acquisitions were $3.6 million in the first nine months of 2023. • We recognized a $2.0 million loss on the disposition of Russia-based operations in the first nine months of 2023. • Compensation expense related to the retention of key PAI employees was $1.3 million in the first nine months of 2023. Argentina highly inflationary impact Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, Argentine peso-denominated monetary assets and liabilities are now remeasured at each balance sheet date to the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In addition, nonmonetary assets retain a higher historical basis when the currency is devalued. The higher historical basis results in incremental expense being recognized when the nonmonetary assets are consumed. In the first nine months of 2024, we recognized $23.8 million in pretax charges in operating profit related to highly inflationary accounting, including currency remeasurement losses of $11.9 million. In the first nine months of 2023, we recognized $30.3 million in pretax charges in operating profit related to highly inflationary accounting, including currency remeasurement losses of $23.9 million. Highly inflationary adjustments also impact gains and losses on marketable securities due to the change in exchange rates. These non-cash charges are not part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results. Transformation initiatives During 2023, we initiated a multi-year program intended to accelerate growth and drive margin expansion through transformation of our business model in the U.S., with expectations to then leverage the transformation changes and learnings globally. The program is designed to help us standardize our commercial and operational systems and processes, drive continuous improvement and achieve operational excellence. Accordingly, we incurred $5.5 million of expense in 2023 and an additional $21.5 million in the first nine months of 2024. The transformation costs primarily include third party professional services and project management charges. These costs relate to a discrete program and are not reflective of our ongoing operating cost structure, and are not indicative of our core operating expenses or normal activities. Additionally, management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results. Department of Justice investigation During the first nine months of 2024, we accrued $7.7 million in connection with a U.S. Department of Justice (the "DOJ") investigation. This amount represents an estimate for a potential resolution, as well as third-party legal costs associated with this matter. In the third quarter of 2024, we determined it was appropriate to exclude third-party costs associated with this matter from non-GAAP results, which for the current quarter consisted of legal costs. In August 2020, the Company received a subpoena issued in connection with the DOJ investigation, primarily related to cross-border shipments of cash and things of value and anti-money laundering (“AML”) compliance. Subsequently, in March 2024, as is commonly the case with this type of matter, the Company received a Notice of Investigation from the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) related to Bank Secrecy Act/AML compliance that involves substantially the same conduct that is subject to the DOJ’s investigation. These costs are not considered part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts, including both the estimate for a potential resolution and associated third-party costs, and the underlying investigation are such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years. Management has excluded these amounts when evaluating internal performance. Therefore, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results. See Note 14 for details. Chile antitrust matter We recognized an estimated loss of $9.5 million in the third quarter of 2021. In the first nine months of 2024, we recognized a $1.1 million adjustment and, in the first nine months of 2023, a $0.4 million adjustment to the estimated loss. The post-2021 adjustments were primarily related to changes in currency rates as well as third-party legal costs associated with this matter. In the third quarter of 2024, we determined it was appropriate to exclude third-party costs associated with this matter from non-GAAP results, which for the current quarter primarily consisted of legal costs. Overall, these charges related to a potential fine associated with an investigation by the Chilean Fiscalía Nacional Económica or "FNE" (the Chilean antitrust agency). The investigation is related to potential anti-competitive practices among competitors in the cash logistics industry in Chile. These costs are not considered part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts, including the estimated loss and associated third-party costs, is such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years of the underlying event. Management has excluded these amounts when evaluating internal performance. Therefore, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results. See Note 14 for details. Non-routine auto loss matter In 2023, a Brink’s employee was involved in a motor vehicle accident with unique circumstances that resulted in the death of a third party and, in connection with the ensuing litigation, Brink’s recognized an $8.0 million charge. In the first nine months of 2024, we recognized a $0.5 million charge related to third-party legal costs associated with this matter. In the third quarter of 2024, we determined it was appropriate to exclude third-party costs associated with this matter from non-GAAP results, which for the current quarter consisted of legal costs. Due to the unusual nature of the matter, including the unique circumstances of the claim, potential magnitude of remedy, and variation from our ordinary-course litigation strategy, we consider the litigation and associated third-party costs as separate and distinct from routine legal matters. Management does not believe that similar litigation will likely recur within the next two years, and there 44 have been no similar matters within the prior two years. Management has excluded these amounts when evaluating internal performance. Therefore, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results. Reporting compliance We incurred certain compliance costs in 2023 to remediate a material weakness in internal controls over financial reporting. These third-party costs are not part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts is such that they are not reasonably likely to recur within two years, nor were similar costs incurred within the prior two years of the underlying event. Management has excluded these amounts when evaluating internal performance. Therefore, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results. 45 Foreign Operations We currently serve customers in more than 100 countries, including 52 countries where we operate subsidiaries. We are subject to risks customarily associated with doing business in foreign countries, including labor and economic conditions, the imposition of international sanctions, including by the U.S. government, political instability, controls on repatriation of earnings and capital, nationalization, expropriation and other forms of restrictive action by local governments. Changes in the political or economic environments in the countries in which we operate could have a material adverse effect on our business, financial condition and results of operations. The future effects, if any, of these risks are unknown. In April 2019, the U.S. government sanctioned the Venezuela central bank and, as a result, the Company has ceased support of the Venezuela business. Our international operations conduct a majority of their business in local currencies. Because our financial results are reported in U.S. dollars, they are affected by changes in the value of various local currencies in relation to the U.S. dollar. Recent strengthening of the U.S. dollar relative to certain currencies has reduced some of our reported U.S. dollar revenues and operating profit and may continue through the end of 2024. At September 30, 2024, Argentina's economy remains highly inflationary for accounting purposes. At September 30, 2024, we had net monetary assets denominated in Argentine pesos of $96.9 million (including cash of $83.0 million) and net nonmonetary assets of $150.6 million (including $99.8 million of goodwill, $1.3 million in equity securities denominated in Argentine pesos and $23.5 million in debt securities denominated in Argentine pesos). During September 2019, the Argentine government announced currency controls on both companies and individuals. Under the exchange procedures implemented by the central bank, approval is required for many transactions, including dividend repatriation abroad. We have previously 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. We did not have any such conversions or conversion losses in the nine months ended September 30, 2024 or September 30, 2023. 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. Changes in exchange rates may also affect transactions that are denominated in currencies other than the functional currency. From time to time, we use short term foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies. At September 30, 2024, the notional value of our short term outstanding foreign currency forward and swap contracts was $1,001 million, with average contract maturities of approximately one month. These short term foreign currency forward and swap contracts primarily offset exposures in the euro, the British pound and the Mexican peso and are not designated as hedges for accounting purposes. Accordingly, changes in their fair value are recorded immediately in earnings. At September 30, 2024, the fair value of our short term foreign currency contracts was a net liability of approximately $13.2 million, of which $2.6 million was included in prepaid expenses and other and $15.8 million was included in accrued liabilities on the condensed consolidated balance sheet. At December 31, 2023, the fair value of these foreign currency contracts was a net liability of approximately $1.1 million, of which $8.7 million was included in prepaid expenses and other and $9.8 million was included in accrued liabilities on the condensed consolidated balance sheet. Cash flows related to economic hedges for acquisition-related intercompany balances are reported as investing activities. All other cash flows for economic hedges are reported as operating activities. Amounts under these contracts were recognized in other operating income (expense) as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2024 2023 2024 2023 Derivative instrument gains (losses) included in other operating income (expense) (a) $ (39.4) 4.3 $ (38.1) 22.9 (a) Derivative instrument losses in the three months ended September 30, 2024, were higher than in the three months ended September 30, 2023, due primarily to the impact of forward currency contracts to hedge exposures to the Mexican peso. We also had a long term cross currency swap contract to hedge exposure in Brazilian real, which was designated as a cash flow hedge for accounting purposes. Accordingly, changes in the fair value of the cash flow hedge were initially recorded in the gains (losses) on cash flow hedges component of accumulated other comprehensive income (loss). We immediately reclassified 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 reclassified amounts from accumulated other comprehensive income (loss) to interest expense amounts that were associated with the interest rate differential between a U.S. dollar denominated intercompany loan and a Brazilian real denominated intercompany loan. 46 In the first nine months of 2023, amounts under this contract were recognized in other operating income (expense) to offset transaction gains or losses and in interest expense as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2024 2023 2024 2023 Derivative instrument losses included in other operating income (expense) $ — (0.5) $ — (7.7) Offsetting transaction gains — 0.5 — 7.7 Derivative instrument losses included in interest expense — (0.2) — (0.7) Net derivative instrument losses — (0.7) — (8.4) 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. 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. In the third quarter of 2022, we terminated these cross currency swap contracts and received $67 million in cash as settlement. We subsequently entered into a total of nine cross currency swaps with a total notional 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. In the third quarter of 2023, we entered into a zero cost foreign exchange collar contract with a $215 million notional amount and a May 2026 expiration date. We sold a put option with a lower strike price and bought a call option with a higher strike price to manage the foreign exchange risk related to the final settlement of the $215 million notional cross currency swaps. Upon the execution of the zero cost foreign exchange collar contract, we de-designated the existing $215 million notional cross currency swaps and re-designated the combined $215 million notional cross currency swaps and zero cost collar into a new hedging instrument. At re-designation, the existing $215 million notional cross currency swaps had a non-zero fair value representing an off-market component of the participating cross currency swaps. The off-market value is being ratably amortized into earnings through May 2026. The combined cross currency swaps and zero cost collar has been designated as a net investment hedge for accounting purposes. At September 30, 2024, the notional value of these cross currency swap contracts was $400 million with a remaining weighted average maturity of 1.5 years for the cross currency swaps maturing in May 2026 and a remaining weighted average maturity of 5.7 years for the cross currency swaps maturing in April 2031. At September 30, 2024, the fair value of these currency swaps was a net liability of $38.2 million, of which $5.6 million was included in prepaid expenses and other and $43.8 million was included in other liabilities on the condensed consolidated balance sheet. At December 31, 2023, the fair value of these currency swaps was a net liability of $34.6 million of which $5.6 million was included in prepaid expenses and other and $40.2 million was included in other liabilities on the condensed consolidated balance sheet. At September 30, 2024, the fair value of the zero cost collar was an asset of $0.4 million, which was included in other assets on the condensed consolidated balance sheet. At December 31, 2023, the fair value of the zero cost collar was an asset of $0.1 million, which was included in other assets on the condensed consolidated balance sheet. In the fourth quarter of 2023, we entered into a foreign exchange forward swap contract to hedge a portion of our net investments in certain of our subsidiaries with Hong Kong dollar functional currencies. As the contract is designated as a net investment hedge for accounting purposes, we will use the spot method to assess effectiveness of this derivative contract. We will record changes in fair value attributable to changes in the Hong Kong dollar undiscounted spot rates in the foreign currency translation adjustments component of accumulated other comprehensive income (loss) with amounts remaining in accumulated comprehensive income (loss) 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 the foreign exchange forward swap contract. At September 30, 2024, the notional value of this foreign exchange forward swap contract was $55 million with a remaining weighted average maturity of 0.1 years. At September 30, 2024, the fair value of this foreign exchange forward swap was an asset of $0.1 million, which was included in prepaid expenses and other on the condensed consolidated balance sheet. At December 31, 2023, the fair value of this foreign exchange forward swap was an asset of $0.1 million, which was included in prepaid expenses and other on the condensed consolidated balance sheet. Cash flows related to the amortization of the off-market component of net investment hedges are reported in investing activities. Cash flows from the termination and final settlement of net investment hedges are reported in investing activities. All other cash flow from net investment hedges are reported as operating activities 47 The effect of the amortization of the spot-forward difference on the net investment hedges cross currency swaps is included in interest expense as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2024 2023 2024 2023 Net derivative instrument gains included in interest expense $ (1.2) (1.2) $ (3.5) (4.1) See Note 1 to the condensed consolidated financial statements for a description of how we account for currency remeasurement for Argentine subsidiaries, beginning July 1, 2018 under the heading, "Argentina". Other Operating Income and Expense Other operating income (expense) includes amounts included in segment results as well as income and expense not allocated to segments. Three Months Ended September 30, % Nine Months Ended September 30, % (In millions, except for percentages) 2024 2023 change 2024 2023 change Foreign currency items: Transaction gains (losses) $ 36.2 (4.6) fav $ 37.9 (31.5) fav Derivative instrument gains (losses) (39.4) 4.3 unfav (38.1) 22.9 unfav Gains (losses) on sale of property and other assets 0.1 3.2 (97) 1.4 1.4 — Impairment losses (1.4) (3.0) (53) (3.3) (7.2) (54) Indemnification asset adjustments (1.2) (1.4) (14) (2.4) (4.0) (40) Share in earnings of equity affiliates 0.6 0.7 (14) 2.0 1.9 5 Royalty income 1.9 1.9 — 6.0 5.5 9 Contingent consideration liability adjustment — — — — 4.8 (100) Other gains (losses) 2.2 0.2 fav 3.1 3.0 3 Other operating income (expense) $ (1.0) 1.3 unfav $ 6.6 (3.2) fav Nonoperating Income and Expense Interest expense Three Months Ended September 30, % Nine Months Ended September 30, % (In millions, except for percentages) 2024 2023 change 2024 2023 change Interest expense $ 63.0 53.8 17 $ 175.3 151.5 16 Interest expense was higher in the first nine months of 2024 due to higher interest rates on corporate debt and overall higher borrowing levels. Borrowings were primarily used to fund growth in our DRS business and other general corporate initiatives. Interest and other nonoperating income (expense) Three Months Ended September 30, % Nine Months Ended September 30, % (In millions, except for percentages) 2024 2023 change 2024 2023 change Interest income $ 10.1 12.9 (22) $ 37.5 26.9 39 Gain (loss) on equity and debt securities 4.5 (9.0) fav 5.0 (10.0) fav Foreign currency transaction gains (losses) (1.2) 0.9 unfav (1.1) (0.2) unfav Retirement benefit cost other than service cost 0.4 0.2 100 (1.0) 1.0 unfav Argentina turnover tax (0.3) (2.4) fav (0.9) (4.3) (79) Non-income taxes on intercompany billings (a) (0.5) (0.4) 25 (2.5) (1.3) 92 Other (2.5) 0.7 unfav (0.7) (0.4) 75 Interest and other nonoperating income (expense) $ 10.5 2.9 fav $ 36.3 11.7 fav (a) 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. 48 Income Taxes Three Months Ended September 30, Nine Months Ended September 30, (In millions, except for effective tax rate) 2024 2023 2024 2023 Continuing operations Provision for income taxes $ 27.2 37.3 $ 75.5 81.0 Effective tax rate 46.0 % 43.0 % 36.0 % 44.2 % Effective Income Tax Rate Our effective tax rate may fluctuate materially from these estimates due to changes in pre-tax earnings, permanent book-tax differences, changes in the expected amount and geographical mix of earnings, changes in current or deferred taxes due to legislative changes, changes in valuation allowances or accruals for contingencies, changes in distributions of share-based payments, changes in U.S. taxable income, and other factors. Noncontrolling Interests Three Months Ended September 30, % Nine Months Ended September 30, % (In millions, except for percentages) 2024 2023 change 2024 2023 change Net income attributable to noncontrolling interests $ 3.0 3.8 (21) $ 9.5 10.1 (6) The decrease in the net income attributable to noncontrolling interests in the three months ended September 30, 2024, in comparison to the three months ended September 30, 2023, is primarily attributable to lower third quarter 2024 operating results reported by certain subsidiaries that are not wholly-owned. The net income attributable to noncontrolling interests in the nine months ended September 30, 2024, in comparison to the nine months ended September 30, 2023, is primarily attributable to lower 2024 operating results reported by certain subsidiaries that are not wholly-owned. 49 Non-GAAP Measures and Reconciliations to GAAP Measures Non-GAAP measures described below and included in this filing are financial measures that are not required by or presented in accordance with GAAP. The purpose of the disclosure of these non-GAAP measures is to report financial information from the primary operations of our business by excluding the effects of certain income and expenses that do not reflect the ordinary earnings of our operations. These non-GAAP financial measures are intended to provide investors with a supplemental comparison of our operating results and trends for the periods presented. Our management believes these measures are also useful to investors as such measures allow investors to evaluate our performance using the same metrics that our management uses to evaluate past performance and prospects for future performance. The reconciliations in the tables below include adjustments that we do not consider reflective of our operating performance as they result from events and circumstances that are not a part of our core business. Additionally, certain non-GAAP results, including non-GAAP operating profit and free cash flow before dividends, are utilized as performance measures in certain management incentive compensation plans. Non-GAAP results should not be considered as an alternative to results determined in accordance with GAAP and should be read in conjunction with their GAAP counterparts. Non-GAAP financial measures may not be comparable to non-GAAP financial measures presented by other companies. The items excluded from non-GAAP measures are considered by us to be nonrecurring, infrequent or unusual costs and gains as well as other items not considered part of our operations and revenue generating activities. Non-recurring and infrequent items are items that are not reasonably expected to recur in the following two years. In addition to the rationale described above, we believe the following non-GAAP metrics are helpful to investors in assessing results of operations consistent with how our management evaluates performance: • Non-GAAP operating profit and Non-GAAP operating profit margin : Non-GAAP operating profit equals GAAP operating profit excluding Other Items not Allocated to Segments. Non-GAAP operating margin equals non-GAAP operating profit divided by revenues. • Non-GAAP income from continuing operations attributable to Brink's : This measure equals GAAP income from continuing operations attributable to Brink's excluding Other Items not Allocated to Segments as well as certain retirement plan expenses/gains and unusual adjustments to deferred tax asset valuation allowances. • Earnings Before Interest Expense, Income Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA: EBITDA is calculated by starting with net income attributable to Brink's and adding back the amounts for interest expense, income taxes, depreciation and amortization. Adjusted EBITDA equals EBITDA excluding the applicable impacts of Other Items not Allocated to Segments as well as certain retirement plan expenses/gains, unusual adjustments to deferred tax asset valuation allowances, income tax rate adjustments, share-based compensation and marketable securities (gain) loss. • Non-GAAP diluted EPS from continuing operations attributable to Brink's common shareholders : This measure equals non-GAAP income from continuing operations attributable to Brink's divided by diluted shares. • Organic change and organic growth : Organic change represents the change in revenues or operating profit between the current and prior period excluding the effect of acquisitions and dispositions for one year after the transaction and changes in currency exchange rates. Organic growth is the percentage change of organic growth versus the prior year amount. • Impact of Acquisitions/ Dispositions: This measure represents the impact of acquisitions or dispositions without a full year of reported results in either comparable period. • Currency Effect: This measure consists of the effects of Argentina devaluations under highly inflationary accounting and the sum of monthly currency changes. Monthly currency changes represent the accumulation throughout the year of the impact on current period results of changes in foreign currency rates from the prior year period. • Non-GAAP pre-tax income, Non-GAAP income tax and Non-GAAP effective income tax rate : Non-GAAP pre-tax income and non-GAAP income tax equal their GAAP counterparts excluding the applicable impacts of Other Items not Allocated to Segments as well as certain retirement plan expenses/gains and unusual adjustments to deferred tax asset valuation allowances. Non-GAAP effective income tax rate equals non-GAAP income tax divided by non-GAAP pre-tax income. In addition to the rationale described above, we believe the following non-GAAP metrics are helpful in assessing cash flow and financial leverage consistent with how our management evaluates performance: • Free Cash Flow before Dividends: This non-GAAP measure reflects Management’s calculation of cash flows that are available for capital or investing activities such as paying dividends, share repurchases, debt, acquisitions and other investments. The measure is calculated as net cash flows from operating activities, adjusted to exclude certain operating activities related to cash that is not available for corporate purposes, including the impact of cash flows from restricted cash held for customers, as well as cash received and processed in certain of our secure cash management services operations. The resulting amount is further adjusted to include the impact of cash flows related to equipment used to operate our business, including capital expenditures, cash proceeds from sale of property and equipment, as well as proceeds from lessor debt financing. The latter item, which is part of cash flows from financing activities and relates to the subsequent financings of certain capital expenditures, was added to our calculation in the second quarter of 2024 as we believe such cash flows are similar in nature to transactions reported in Investing Activities, which have historically been included in our calculation. Prior amounts were recast to reflect this change. • Net Debt : Net Debt equals total debt less cash and cash equivalents available for general corporate purposes. We exclude from cash and cash equivalents amounts held by our cash management services operations, as such amounts are not considered available for general corporate purposes. See page 59 for more details. 50 Reconciliations of Non-GAAP to GAAP Measures Non-GAAP measures are reconciled to comparable GAAP measures either in the tables below or in “Liquidity and Capital Resources” section. Amounts reported for prior periods have been updated in this report to present information consistently for all periods presented. Most of the reconciling adjustments are described in Other Items Not Allocated to Segments above on pages 42 – 44 . Additional reconciling items include the following: Retirement plans We incur costs, such as interest expense and amortization of actuarial gains and losses, associated with certain retirement plans that have been frozen to new entrants. Furthermore, we also incur non-cash settlement charges and curtailment gains related to all of our retirement plans. These costs and gains are not considered to be part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. Therefore, they are excluded from non-GAAP results. Valuation allowance on tax credits As a result of new foreign tax credit regulations, we released a valuation allowance on deferred tax assets and recorded a significant income tax credit in 2022. We then re-established some of the valuation allowance in 2023 primarily related to adjustments to the previous foreign tax credit changes, resulting in a significant incremental income tax expense. This gain and subsequent charge both related to the same underlying event, a major tax law change. A similar event is not reasonably likely to recur within two years, nor did a similar event occur within the prior two years. Also, the gain and charge are not considered to be part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. Therefore, they are excluded from non-GAAP results. Change in restricted cash held for customers Restricted cash held for customers is not available for general corporate purposes such as payroll, vendor invoice payments, debt repayment, or capital expenditures. Because the cash is not available to support the Company's operations and revenue generating activities, management excludes the changes in the restricted cash held for customers balance when assessing cash flows from operations. We believe that the exclusion of the change in restricted cash held for customers from our non-GAAP operating cash flows measure is helpful to users of the financial statements as it presents this financial measure consistent with how management assesses this liquidity measure. Change in certain customer obligations The 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 is thus not available for general corporate purposes. Because the cash is not available to support our operations and revenue generating activities, management excludes the changes in this specific cash balance when assessing cash flows from operations. We believe that the exclusion of the change in this cash balance from our non-GAAP operating cash flows measure is helpful to the users of our financial statements as it presents this financial measure consistent with how our management assesses this liquidity measure. Amounts held by cash management services operations As described above, cash held in certain of our secure cash management services operations is not available to support our operations and revenue generating activities. Therefore, management excludes this specific cash balance when assessing our liquidity and capital resources, and in our computation of Net Debt. We believe that the exclusion of this cash balance from our non-GAAP Net Debt measure is helpful to the users of our financial statements as it presents this financial measure consistent with how our management assesses this liquidity measure. 51 Non-GAAP reconciled to GAAP Nine months ended September 30, 2024 Nine months ended September 30, 2023 (In millions, except for percentages) Pre-tax income (a) Income tax Effective income tax rate (a) Pre-tax income (a) Income tax Effective income tax rate (a) GAAP $ 209.5 75.5 36.0 % $ 183.3 81.0 44.2 % Reorganization and restructuring (c) 1.9 0.4 14.6 2.7 Acquisitions and dispositions (c) 48.3 3.9 57.3 7.7 Argentina highly inflationary impact (c) 24.7 1.6 53.6 (1.6) Transformation initiatives (c) 21.5 0.5 — — Department of Justice investigation (c) 7.7 — — — Chile antitrust matter (c) 1.1 0.2 0.4 0.1 Non-routine auto loss matter (c) 0.5 — — — Reporting compliance (c) — — 0.7 — Retirement plans (b) (5.9) (1.2) (6.2) (1.3) Valuation allowance on tax credits (b) — — — (6.7) Income tax rate adjustment (d) — 6.0 — (6.5) Non-GAAP $ 309.3 86.9 28.1 % $ 303.7 75.4 24.8 % Amounts may not add due to rounding. (a) From continuing operations. (b) See "Reconciliations of Non-GAAP to GAAP Measures" on page 51 for details. (c) See “Other Items Not Allocated To Segments” on pages 42 - 44 for details. (d) Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 28.1% for 2024 and was 24.8% for 2023. 52 Three Months Ended September 30, Nine Months Ended September 30, (In millions, except for per share amounts) 2024 2023 2024 2023 Operating profit: GAAP $ 111.6 137.7 $ 348.5 323.1 Reorganization and restructuring (a) 0.4 0.4 1.9 14.6 Acquisitions and dispositions (a) 16.5 19.4 47.2 56.4 Argentina highly inflationary impact (a) 10.8 8.1 23.8 30.3 Transformation initiatives (a) 9.5 — 21.5 — Department of Justice investigation (a) 1.7 — 7.7 — Chile antitrust matter (a) 0.6 — 1.1 0.4 Non-routine auto loss matter (a) 0.5 — 0.5 — Reporting compliance (a) — 0.7 — 0.7 Non-GAAP $ 151.6 166.3 $ 452.2 425.5 Income (loss) from continuing operations attributable to Brink's: GAAP $ 28.9 45.7 $ 124.5 92.2 Reorganization and restructuring (a) 0.3 0.3 1.5 11.9 Acquisitions and dispositions (a) 16.0 15.1 43.7 48.8 Argentina highly inflationary impact (a) 10.0 31.7 23.1 55.2 Transformation initiatives (a) 9.3 — 21.0 — Department of Justice investigation (a) 1.7 — 7.7 — Chile antitrust matter (a) 0.5 — 0.9 0.3 Non-routine auto loss matter (a) 0.5 — 0.5 — Reporting compliance (a) — 0.7 — 0.7 Retirement plans (b) (2.0) (1.5) (4.7) (4.9) Valuation allowance on tax credits (b) — — — 6.7 Income tax rate adjustment (c) 2.4 5.5 (5.5) 7.0 Non-GAAP $ 67.6 97.5 $ 212.7 217.9 Adjusted EBITDA: Net income (loss) attributable to Brink's $ 28.9 45.6 $ 124.4 92.7 Interest expense 63.0 53.8 175.3 151.5 Income tax provision 27.2 37.3 75.5 81.0 Depreciation and amortization 74.8 69.1 220.3 206.3 EBITDA $ 193.9 205.8 $ 595.5 531.5 Discontinued operations — 0.1 0.1 (0.5) Reorganization and restructuring (a) 0.4 0.4 1.9 13.4 Acquisitions and dispositions (a) 2.9 3.6 3.8 12.6 Argentina highly inflationary impact (a) 7.3 29.4 15.6 49.8 Transformation initiatives (a) 9.5 — 21.5 — Department of Justice investigation (a) 1.7 — 7.7 — Chile antitrust matter (a) 0.6 — 1.1 0.4 Non-routine auto loss matter (a) 0.5 — 0.5 — Reporting compliance (a) — 0.7 — 0.7 Retirement plans (b) (2.5) (2.1) (5.9) (6.2) Income tax rate adjustment (c) (0.1) (0.1) 0.5 0.5 Share-based compensation (d) 7.5 6.4 24.1 26.5 Marketable securities (gain) loss (e) (4.9) (13.7) (5.5) (13.4) Adjusted EBITDA $ 216.8 230.5 $ 660.9 615.3 53 Three Months Ended September 30, Nine Months Ended September 30, (In millions, except for per share amounts) 2024 2023 2024 2023 Diluted EPS: GAAP $ 0.65 0.97 $ 2.77 1.95 Reorganization and restructuring (a) 0.01 0.01 0.03 0.25 Acquisitions and dispositions (a) 0.36 0.31 0.97 1.02 Argentina highly inflationary impact (a) 0.22 0.67 0.51 1.17 Transformation initiatives (a) 0.21 — 0.47 — Department of Justice investigation (a) 0.04 — 0.17 — Chile antitrust matter (a) 0.01 — 0.02 0.01 Non-routine auto loss matter (a) 0.01 — 0.01 — Reporting compliance (a) — 0.02 — 0.02 Retirement plans (b) (0.05) (0.03) (0.11) (0.11) Valuation allowance on tax credits (b) — — — 0.14 Income tax rate adjustment (c) 0.05 0.12 (0.12) 0.15 Non-GAAP $ 1.51 2.07 $ 4.73 4.61 Amounts may not add due to rounding. (a) See “Other Items Not Allocated To Segments” on pages 42 - 44 for details. (b) See "Reconciliations of Non-GAAP to GAAP Measures" on page 51 for details. (c) Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 28.1% for 2024 and was 24.8% for 2023. (d) Due to reorganization and restructuring activities, there was a $0.9 million non-GAAP adjustment to share-based compensation in 2023. There is no difference between GAAP and non-GAAP share-based compensation amounts for the other periods presented. (e) Due to the impact of Argentina highly inflationary accounting, there was a $22.7 million non-GAAP adjustment for a loss in the third quarter of 2023, and a $23.3 million non-GAAP adjustment for a loss in the nine months ended 2023. There was a $0.7 million non-GAAP adjustment for a loss in the third quarter of 2024 and a $0.9 million non-GAAP adjustment for a loss in the nine months ended 2024. 54 LIQUIDITY AND CAPITAL RESOURCES Overview Cash flows from operating activities decreased $236.8 million in the first nine months of 2024 as compared to the first nine months of 2023. Cash used for investing activities increased by $33.5 million in the first nine months of 2024 compared to the first nine months of 2023. We financed our liquidity needs in the first nine months of 2024 with existing cash from operations and cash flows from long term debt. Operating Activities Nine Months Ended September 30, $ (In millions) 2024 2023 change Cash flows provided from (used in) operating activities - GAAP $ 56.2 293.0 (236.8) Decrease in restricted cash held for customers (see Note 13) (a) 100.6 44.9 55.7 Decrease in customer obligations (a) 69.7 5.5 64.2 Capital expenditures (159.9) (133.1) (26.8) Cash proceeds from sale of property and equipment 12.0 5.7 6.3 Proceeds from lessor debt financing (see Note 13) 19.4 19.8 (0.4) Free cash flow before dividends (a) $ 98.0 235.8 (137.8) (a) Free cash flow before dividends is a supplemental financial measure that is not required by, or presented in accordance with, GAAP. See page 50 for further information on this non-GAAP measure, and see page 51 for descriptions of the adjustments. Cash flows from operating activities - GAAP Cash flows from operating activities decreased $236.8 million in the first nine months of 2024 compared to the same period in 2023. The decrease was attributed to restricted cash held for customers (restricted cash held for customers decreased by $100.6 million in 2024 compared to a decrease of $44.9 million in 2023), changes in customer obligations related to certain of our secure cash management services operations (certain customer obligations decreased by $69.7 million in 2024 compared to a decrease of $5.5 million in 2023), changes in working capital excluding taxes and interest (working capital decreased by $98.2 million in 2024 compared to a decrease of $51.6 million in 2023), higher amounts paid for interest (we had $172.9 million in cash payments for interest in 2024 as compared to $161.2 million in 2023), and higher amounts paid for income taxes (we had $96.3 million in cash payments for taxes in 2024 as compared to $74.5 million in 2023), partially offset by higher operating profit. Free cash flow before dividends - non-GAAP Free cash flow before dividends decreased $137.8 million in the first nine months of 2024 as compared to the same period in 2023. The decrease was attributed to changes in working capital, higher amounts paid for interest and incomes taxes, and higher amounts paid for capital expenditures (we had $159.9 million in capital expenditures in 2024 compared to $133.1 million in 2023), partially offset by higher operating profit and higher proceeds received from sale of property and equipment (we received $12.0 million in proceeds in 2024 as compared to $5.7 million in 2023). 55 Investing Activities Nine Months Ended September 30, $ (In millions) 2024 2023 change Cash flows from investing activities Capital expenditures $ (159.9) (133.1) (26.8) Acquisitions, net of cash acquired (14.4) — (14.4) Dispositions, net of cash disposed — 1.1 (1.1) Marketable securities: Purchases (59.3) (58.3) (1.0) Sales 42.8 48.7 (5.9) Proceeds from sale of property and equipment 12.0 5.7 6.3 Net change in loans held for investment 5.4 (12.3) 17.7 Other (8.0) (0.6) (7.4) Discontinued operations — 0.9 (0.9) Investing activities $ (181.4) (147.9) (33.5) Cash used by investing activities increased by $33.5 million in the first nine months of 2024 versus the first nine months of 2023. The increase was primarily due to increases in cash paid for capital expenditures and increases in cash paid for acquisitions in Europe and North America in 2024, partially offset by the net change in loans held for investment (we had $5.4 million in cash received in 2024 compared to $12.3 million in cash paid in 2023), as discussed in Note 13. 56 Capital expenditures and depreciation and amortization were as follows: Nine Months Ended September 30, $ Full Year (In millions) 2024 2023 change 2023 Property and equipment acquired during the period Capital expenditures (a) : North America $ 41.2 27.8 13.4 43.8 Latin America 27.0 35.2 (8.2) 48.8 Europe 60.5 41.5 19.0 72.1 Rest of World 27.1 23.1 4.0 30.6 Corporate 4.1 5.5 (1.4) 7.4 Capital expenditures $ 159.9 133.1 26.8 202.7 Financing leases (b) : North America $ 26.9 42.0 (15.1) 59.4 Latin America 9.5 3.7 5.8 11.0 Europe 7.4 15.6 (8.2) 21.4 Rest of World 0.4 0.2 0.2 0.2 Financing leases $ 44.2 61.5 (17.3) 92.0 Total: North America $ 68.1 69.8 (1.7) 103.2 Latin America 36.5 38.9 (2.4) 59.8 Europe 67.9 57.1 10.8 93.5 Rest of World 27.5 23.3 4.2 30.8 Corporate 4.1 5.5 (1.4) 7.4 Total property and equipment acquired $ 204.1 194.6 9.5 294.7 Depreciation and amortization (a) North America $ 60.7 53.9 6.8 73.9 Latin America 41.2 40.0 1.2 53.6 Europe 43.3 41.1 2.2 54.2 Rest of World 19.5 17.8 1.7 24.4 Total reportable segments $ 164.7 152.8 11.9 206.1 Corporate 2.7 5.3 (2.6) 5.3 Argentina highly inflationary impact 9.1 3.8 5.3 5.4 Reorganization and restructuring — 1.2 (1.2) 1.2 Depreciation and amortization of property and equipment $ 176.5 163.1 13.4 218.0 Amortization of intangible assets (a) 43.8 43.2 0.6 57.8 Total depreciation and amortization $ 220.3 206.3 14.0 275.8 (a) Amortization of acquisition-related intangible assets has been excluded from reportable segment amounts. Our reinvestment ratio, which we define as the annual amount of property and equipment acquired during the period divided by the annual amount of depreciation, was 1.4 for the 12 months ending September 30, 2024 compared to 1.3 for the 12 months ending September 30, 2023. Capital expenditures in the first nine months of 2024 were primarily for cash devices, information technology, and armored vehicles. 57 Financing Activities Nine Months Ended September 30, $ (In millions) 2024 2023 change Cash flows from financing activities Borrowings and repayments: Short-term borrowings $ (6.7) 76.6 (83.3) Long-term revolving credit facilities, net (32.9) (72.6) 39.7 Other long-term debt, net 330.3 (54.7) 385.0 Borrowings (repayments) 290.7 (50.7) 341.4 Acquisition of noncontrolling interest (0.2) (0.6) 0.4 Debt financing costs (10.5) — (10.5) Repurchase shares of Brink's common stock (125.3) (105.7) (19.6) Dividends to: Shareholders of Brink’s (31.3) (29.7) (1.6) Noncontrolling interests in subsidiaries (5.2) (6.5) 1.3 Acquisition-related financing activities: Payment of acquisition related obligation (0.8) (10.5) 9.7 Tax withholdings associated with share-based compensation (17.9) (7.6) (10.3) Other — 3.9 (3.9) Financing activities $ 99.5 (207.4) 306.9 Debt borrowings and repayments Cash from financing activities increased by $306.9 million year over year as we had net cash from financing activities of $99.5 million in the first nine months of 2024 compared to net cash used in financing activities of $207.4 million in the first nine months of 2023. The change was driven primarily by an increase in net borrowings (as discussed in Note 9) compared to the prior year nine month period, partially offset by increased cash used to repurchase shares of common stock (we used $125.3 million to repurchase shares in 2024 as compared to $105.7 million in 2023). Dividends We paid dividends to Brink’s shareholders of $0.7050 per share or $31.3 million in the first nine months of 2024 compared to $0.6400 per share or $29.7 million in the first nine months of 2023. Future dividends are dependent on our earnings, financial condition, shareholders’ equity levels, our cash flow and business requirements, as determined by the Board of Directors. 58 Capitalization Reconciliation of Net Debt to U.S. GAAP Measures September 30, December 31, (In millions) 2024 2023 Debt: Short-term borrowings $ 140.8 151.7 Long-term debt 3,710.5 3,379.6 Total Debt $ 3,851.3 3,531.3 Less: Cash and cash equivalents $ 1,226.3 1,176.6 Amounts held by Cash Management Services operations (a) (92.4) (166.2) Cash and cash equivalents available for general corporate purposes $ 1,133.9 1,010.4 Net Debt (a) $ 2,717.4 2,520.9 (a) Net Debt is a supplemental non-GAAP financial measure that is not required by or presented in accordance with GAAP. See page 50 for further information on this non-GAAP measure, and see page 51 for a description of the adjustment. Included within Net Debt is net cash from our Argentina operations of $83 million at September 30, 2024 and $63 million at December 31, 2023 (see Note 1 to the consolidated financial statements for a discussion of currency controls in Argentina). Debt and Net Debt as of September 30, 2024 increased versus the prior year end to provide funding for general corporate purposes and other working capital needs. Liquidity Needs Our liquidity needs include not only the working capital requirements of our operations but also investments in our operations, business development activities, payments on outstanding debt, dividend payments and share repurchases. Our operating liquidity needs are typically financed by cash from operations, short-term borrowings and the available borrowing capacity under our Revolving Credit Facility (our debt facilities are described in more detail in Note 9 to the condensed consolidated financial statements, including certain limitations and considerations related to the cash and borrowing capacity). As of September 30, 2024, $499 million was available under the Revolving Credit Facility. Based on our current cash on hand, cash generated from operations, and amounts available under our credit facilities and our ability to access capital from financial markets, we believe that we will be able to meet our liquidity needs for the next 12 months and thereafter the foreseeable future. Limitations on dividends from foreign subsidiaries . A significant portion of our operations are outside the U.S. which may make it difficult to or costly to repatriate additional cash for use in the U.S. See “Risk Factors” in Item 1A of our annual report on Form 10-K for the year ended December 31, 2023, for more information on the risks associated with having businesses outside the U.S. Our conclusion that we will be able to fund our cash requirements for the next 12 months by using existing capital resources, cash on hand, and cash generated from operations does not take into account any potential material worsening of economic conditions or material increases in inflation that would adversely affect our business. The anticipated cash needs of our business could change significantly if we pursue and complete additional business acquisitions, if our business plans change, or if other economic conditions change, such as material increases in inflation, from those currently prevailing or from those now anticipated, such as higher inflation or if other unexpected circumstances arise that may have a material effect on the cash flow or profitability of our business, including material negative changes in the health and welfare of our employees or changes in the condition of our customers or suppliers, and the operating performance or financial results of our business. Any of these events or circumstances, including any new business opportunities, could involve significant additional funding needs in excess of the identified currently available sources and could require us to raise additional debt or equity funding to meet those needs. Our ability to raise additional capital, if necessary, is subject to a variety of factors that we cannot predict with certainty, including: • our future profitability; • the quality of our accounts receivable; • our relative levels of debt and equity; • the volatility and overall condition of the capital markets; and • the market prices of our securities. 59 Equity On November 2, 2023, our Board of Directors authorized a $500 million share repurchase program that expires on December 31, 2025 (the "2023 Repurchase Program"). Under the 2023 Share 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. During the nine months ended September 30, 2024, we repurchased a total of 1,291,224 shares of our common stock for an aggregate of $125.3 million and an average price of $97.04 per share. These shares were retired upon repurchase. At September 30, 2024, $375 million remained available under the 2023 Repurchase Program. In October 2021, we announced that our Board of Directors authorized a $250 million share repurchase program (the "2021 Repurchase Program"). Under the 2021 Repurchase Program, in 2023, we repurchased a total of 2,297,955 shares of our common stock for an aggregate of $169.9 million and an average price of $73.92 per share. These shares were retired upon repurchase. The 2021 Repurchase Program expired on December 31, 2023 with approximately $28 million remaining available. U.S. Retirement Liabilities Assumptions for U.S. Retirement Obligations The amounts in the tables below are based on a variety of estimates, including actuarial assumptions as of the most recent measurement date. The assumptions used to estimate our U.S. retirement obligations can be found in our Annual Report on Form 10-K for the year ended December 31, 2023. The estimated amounts will change in the future to reflect payments made, investment returns, actuarial revaluations, and other changes in estimates. Actual amounts could differ materially from the estimated amounts and will be updated at December 31, 2024. Our most significant actuarial assumptions include: • Changing discount rates and other assumptions in effect at measurement dates (normally December 31) • Investment returns of plan assets • Addition of new participants (historically immaterial due to freezing of pension benefits and exit from coal business) • Mortality rates • Change in laws Funded Status of U.S. Retirement Plans Actual Actual Projected (In millions) 2023 Nine Months 2024 4th Quarter 2024 2025 2026 2027 2028 Primary U.S. pension plan Beginning funded status $ (24.0) (10.9) 1.1 (5.1) 3.4 12.0 20.6 Net periodic pension credit (a) 15.1 12.0 4.1 14.5 12.8 10.8 11.6 Payment from Brink’s — — — — — 0.1 4.6 Benefit plan experience loss (2.0) — (10.3) (6.0) (4.2) (2.3) (2.3) Ending funded status $ (10.9) 1.1 (5.1) 3.4 12.0 20.6 34.5 UMWA plans Beginning funded status $ (94.9) (77.9) (84.9) (85.1) (85.6) (86.4) (87.6) Net periodic postretirement cost (a) (0.8) 0.2 1.4 (0.5) (0.8) (1.2) (1.4) Benefit plan experience gain 15.1 — — — — — — Other 2.7 (7.2) (1.6) — — — — Ending funded status $ (77.9) (84.9) (85.1) (85.6) (86.4) (87.6) (89.0) Black lung plans Beginning funded status $ (75.8) (74.4) (70.9) (68.8) (63.5) (58.6) (54.2) Net periodic postretirement cost (a) (3.9) (2.7) (1.0) (3.3) (3.0) (2.8) (2.6) Payment from Brink’s 7.7 6.2 3.1 8.6 7.9 7.2 6.7 Benefit plan experience loss (2.4) — — — — — — Ending funded status $ (74.4) (70.9) (68.8) (63.5) (58.6) (54.2) (50.1) (a) Excludes amounts reclassified from accumulated other comprehensive income (loss). 60 Primary U.S. Pension Plan Pension benefits provided to eligible U.S. employees were frozen on December 31, 2005, and benefits are not provided to employees hired after 2005 or to those covered by a collective bargaining agreement. We did not make cash contributions to the primary U.S. pension plan in 2023 or the first nine months of 2024. There are approximately 10,500 beneficiaries in the plan. Based on our current assumptions, we do not expect to make contributions until 2027. UMWA Plans Retirement benefits related to former coal operations include medical benefits provided by the Pittston Coal Group Companies Employee Benefit Plan for UMWA Represented Employees. There were approximately 2,400 beneficiaries in the UMWA plans as of December 31, 2023. The Company does not expect to make additional contributions to these plans until 2036, based on actuarial assumptions. Black Lung Under the Federal Black Lung Benefits Act of 1972, Brink’s is responsible for paying lifetime black lung benefits to miners and their dependents for claims filed and approved after June 30, 1973. There were approximately 700 black lung beneficiaries as of December 31, 2023. Summary of Expenses Related to All U.S. Retirement Liabilities through 2028 This table summarizes actual and projected expense related to U.S. retirement liabilities. Actual Actual Projected (In millions) 2023 Nine Months 2024 4th Quarter 2024 FY2024 2025 2026 2027 2028 Primary U.S. pension plan $ (13.6) (8.1) (2.8) (10.9) (5.0) 0.6 6.2 3.1 UMWA plans (5.1) (5.6) (2.7) (8.3) (5.6) (0.9) (0.8) (0.7) Black lung plans 8.5 6.2 2.0 8.2 7.5 6.9 6.4 5.9 Total $ (10.2) (7.5) (3.5) (11.0) (3.1) 6.6 11.8 8.3 Summary of Payments from Brink’s to U.S. Plans and Payments from U.S. Plans to Participants through 2028 This table summarizes actual and projected payments from Brink’s to U.S. retirement plans and from the plans to participants. Actual Actual Projected (In millions) 2023 Nine Months 2024 4th Quarter 2024 FY2024 2025 2026 2027 2028 Payments from Brink’s to U.S. Plans Primary U.S. pension plan $ — — — — — — 0.1 4.6 Black lung plans 7.7 6.2 3.1 9.3 8.6 7.9 7.2 6.7 Total $ 7.7 6.2 3.1 9.3 8.6 7.9 7.3 11.3 Payments from U.S. Plans to participants Primary U.S. pension plan $ 44.5 33.3 14.8 48.1 48.0 47.9 47.6 47.1 UMWA plans 19.8 15.8 2.7 18.5 18.3 18.1 18.0 17.9 Black lung plans 7.7 6.2 3.1 9.3 8.6 7.9 7.2 6.7 Total $ 72.0 55.3 20.6 75.9 74.9 73.9 72.8 71.7 Contingent Matters See Note 14 to the condensed consolidated financial statements for information about contingent matters at September 30, 2024. Critical Accounting Policies and Estimates There have been no material changes to the company’s critical accounting policies and estimates as reported in its Annual Report on Form 10-K for the year ended December 31, 2023. 61