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Item 7. Management’s Discussion and Analysis

2025-02-26 compared with 2024-02-29 · 481 added, 512 removed, 826 unchanged (55% of the section changed)

7 unchanged sentences

Analysis of Results

Income and Expense Not Allocated to Segments

Analysis of Income and Expense Not Allocated to Segments

Other Operating Income and Expense

24 unchanged sentences

• 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

• Basic ATM services – cash replenishment and treasury management of automated teller machines ("ATMs")

• Brink's Global Services ("BGS") – secure international transportation, pick-up, packaging, customs clearance, secure vault storage, and inventory management of high-value commodities and goods

• 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

• Vaulting services – combines CIT 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")

• Digital Retail Solutions – services that facilitate faster access to cash deposits leveraging Brink’s tech-enabled devices and software platforms that enable enhanced customer analytics and visibility

• ATM managed services – comprehensive solutions for ATM management, including cash forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, and installation services

• 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, first and second line maintenance, parts provisioning, funds settlements and installation services

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,

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,

8 unchanged sentences

• proven operational excellence

• high-quality insurance coverage and financial strength, and

• high-quality insurance coverage and financial strength;

• innovative technology-enabled offerings.

Our strategy is to grow Brink’s by providing a superior customer experience and driving continuous improvement.

Our strategy continues to focus on growing Brink’s by providing a superior customer experience and driving continuous improvement.

We will achieve this by delivering on four strategic pillars:

Growth and Customer Loyalty, Innovation, Operational Excellence, and Talent.

(1) Partner for Customer Success, (2) Innovate to Grow, (3) Run the Business Better, and (4) Win as Team Brink's.

This framework considers our global footprint and values-driven culture.

13 unchanged sentences

Consolidated Results

GAAP and Non-GAAP Financial Measures We provide an analysis of our operations below on both a generally accepted accounting principles (“GAAP”) and non-GAAP basis.

The purpose of the non-GAAP information is to report our operating profit, income from continuing operations and earnings per share without certain income and expense items that do not reflect the regular earnings of our operations.

The 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.

We do not consider these items to be reflective of our core operating performance.

The non-GAAP adjustments used to reconcile our GAAP results are described in detail on pages 28 - 30 and are reconciled to comparable GAAP measures on pages 35 - 37 .

Definition of Organic Growth Organic growth 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.

See definitions on page 26 .

Years Ended December 31, % change

(In millions, except for per share amounts) 2023 2022 2021 2023 2022

(In millions, except for percentages and per share amounts) 2024 2023 2022 2024 2023

Revenues $ 5,011.9 4,874.6 4,535.5 3 7

2 unchanged sentences

Operating profit 453.0 425.2 361.3 7 18

Income (loss) from continuing operations (a)

Operating profit margin

9.0 % 8.7 % 8.0 % fav fav

Income from continuing operations (a)

161.8 86.0 173.5 88 (50)

1 unchanged sentence

$ 3.61 1.83 3.63 97 (50)

Non-GAAP revenues $ 4,874.6 4,535.5 4,200.2 7 8

Non-GAAP operating profit 629.4 615.0 550.3 2 12

Non-GAAP operating profit margin 12.6 % 12.6 % 12.1 % — fav

Non-GAAP income from continuing operations (a)

321.4 344.6 286.4 (7) 20

Adjusted EBITDA 911.9 867.2 788.3 5 10

Non-GAAP diluted EPS from continuing operations (a)

1 unchanged sentence

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

(b) Non-GAAP results are reconciled to the applicable GAAP results on pages 35 – 37 .

(b) These measures are supplemental financial measures that are not required by, or presented in accordance with, GAAP.

See page 34 for further information on these non-GAAP measures and reconciliations to the applicable GAAP measures.

Analysis of Consolidated Results:

2024 versus 2023

Consolidated Revenues Revenues increased $339.1 million due to organic increases in Latin America ($282.0 million), Europe ($71.4 million), Rest of World ($22.7 million), and North America ($18.3 million) and the favorable impact of acquisitions ($105.5 million), partially offset by the unfavorable impact of currency exchange rates ($160.8 million).

Consolidated Revenues Revenues increased $137.3 million due to organic increases in Latin America ($461.8 million), Europe ($82.3 million), North America ($36.6 million), and Rest of World ($20.7 million) and the favorable impact of acquisitions ($23.7 million), partially offset by the unfavorable impact of currency exchange rates ($487.8 million).

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

Revenues increased 12% on an organic basis primarily due to inflation-based price increases and growth in AMS and DRS revenue.

See above for our definition of “organic.”

Consolidated Costs and Expenses Cost of revenues increased 7% to $3,707.1 million primarily due to higher revenue, including the impact of acquisitions, partially offset by the impact of currency exchange rates and lower costs related to restructuring actions and cost productivity.

Selling, general and administrative costs increased 0.2% to $688.1 million primarily due to organic increases in labor and other administrative costs and the impact of acquisitions partially offset by the 2022 unfavorable impact of a change in allowance estimate ($15.6 million) due to a modification in our methodology to estimate the allowance for doubtful accounts and the impact of currency exchange rates.

Consolidated Operating Profit Operating profit increased $63.9 million due mainly to:

• organic increases in Latin America ($77.4 million), North America ($25.2 million), Europe ($9.1 million), and Rest of World ($3.3 million),

See below for our definition of “organic change” and "organic growth."

Consolidated Costs and Expenses Cost of revenues increased 1% to $3,743.1 million primarily due to higher revenue partially offset by the impact of currency exchange rates.

Selling, general and administrative costs increased 21.3% to $834.5 million primarily due to organic increases in labor and other administrative costs, costs incurred in connection with the resolutions of the U.S.

Department of Justice ("DOJ") and the U.S.

Department of the Treasury's Financial Crimes Enforcement Network ("FinCEN") investigations (see Note 23), and costs related to transformation initiatives, partially offset by the the impact of currency exchange rates.

Consolidated Operating Profit and Operating Profit Margin Operating profit margin increased from 8.7% to 9.0%.

Operating profit increased $27.8 million due mainly to:

• organic increases in Latin America ($149.0 million), Europe ($12.2 million), North America ($7.6 million), and Rest of World ($5.6 million),

• lower costs incurred related to reorganization and restructuring ($16.1 million),

• lower costs related to business acquisitions and dispositions ($8.6 million), including the impact of acquisition-related charges, included in "Other items not allocated to segments", and

• favorable operating impact of business acquisitions ($1.7 million), excluding intangible amortization and acquisition-related charges,

• lower costs related to the impact of a change in allowance estimate ($15.6 million) recorded in 2022 due to a modification in our methodology to estimate the allowance for doubtful accounts,

• lower costs related to business acquisitions and dispositions ($15.7 million), including the impact of acquisition-related charges and intangible asset amortization, included in "Other items not allocated to segments", and

• lower corporate expenses on an organic basis ($4.8 million),

partially offset by:

• unfavorable changes in currency exchange rates ($96.5 million) primarily driven by the Argentine peso,

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders decreased $87.5 million to $86.0 million due to higher income tax expense ($97.8 million) and higher interest expense ($65.0 million), partially offset by the increase in operating profit mentioned above, higher interest and other nonoperating income ($10.7 million), and lower noncontrolling interest ($0.7 million).

Diluted earnings per share from continuing operations was $1.83, down from $3.63 in 2022.

• higher costs in connection with the resolutions of DOJ/FinCEN investigations ($45.7 million),

• higher transformation initiative costs ($22.9 million), and

• higher corporate expenses on an organic basis ($12.4 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 $75.8 million to $161.8 million due to lower income tax expense ($46.5 million), higher interest and other nonoperating income ($34.3 million), and the increase in operating profit mentioned above, partially offset by higher interest expense ($31.6 million).

Diluted earnings per share from continuing operations was $3.61, up from $1.83 in 2023.

Non-GAAP Basis

1 unchanged sentence

2024 versus 2023

Non-GAAP Consolidated Revenues There is no difference between GAAP and Non-GAAP revenue amounts for the periods presented.

See page 24 for details.

Non-GAAP Consolidated Operating Profit Non-GAAP operating profit increased $64.7 million due mainly to:

• organic increases in Latin America ($77.4 million), North America ($25.2 million), Europe ($9.1 million), and Rest of World ($3.3 million),

• the favorable operating impact of business acquisitions ($16.1 million), excluding intangible amortization and acquisition-related charges, and

• lower corporate expenses on an organic basis ($4.8 million),

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, adjusted EBITDA 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 34 and are reconciled to comparable GAAP measures on pages 35 - 38 .

Non-GAAP Consolidated Operating Profit and Non-GAAP Operating Profit Margin Non-GAAP operating profit margin was 12.6%.

Non-GAAP operating profit increased $14.4 million due mainly to:

• organic increases in Latin America ($149.0 million), Europe ($12.2 million), North America ($7.6 million), and Rest of World ($5.6 million) and

• the favorable operating impact of business acquisitions ($1.7 million), excluding intangible amortization and acquisition-related charges,

partially offset by:

• unfavorable changes in currency exchange rates ($71.2 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 increased $58.2 million to $344.6 million due to the operating profit increase mentioned above, higher interest and other nonoperating income ($45.7 million), lower income tax expense ($12.3 million), and lower noncontrolling interest ($0.9 million), partially offset by higher interest expense ($65.4 million).

Diluted earnings per share from continuing operations was $7.35, up from $5.99 in 2022.

• unfavorable changes in currency exchange rates ($149.3 million), driven primarily by the Argentine peso, and

• higher corporate expenses on an organic basis ($12.4 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 $23.2 million to $321.4 million due to higher interest expense ($32.4 million), lower interest and other nonoperating income ($20.6 million), and higher noncontrolling interest ($1.2 million), partially offset by lower income tax expense ($16.6 million) and the operating profit increase mentioned above.

Non-GAAP diluted earnings per share from continuing operations was $7.17, down from $7.35 in 2023.

Adjusted EBITDA Adjusted EBITDA increased 5% to $911.9 million primarily due to the increase in non-GAAP operating profit ($14.4 million), excluding the impact of higher non-GAAP depreciation and amortization ($11.6 million).

Revenues and Operating Profit by Segment

Organic Acquisitions / % Change

(In millions) 2022 Change Dispositions (a)

2023 Total Organic

Organic Acquisitions / Currency

(In millions, except for percentages)

2023 Change (a)

Dispositions (b)

2024 Total Growth (a)

North America $ 1,601.1 36.6 13.9 (1.9) 1,649.7 3 2

2 unchanged sentences

Rest of World 804.4 20.7 — (1.3) 823.8 2 3

Segment revenues (c)

4,535.5 394.4 105.5 (160.8) 4,874.6 7 9

Revenues - GAAP $ 4,535.5 394.4 105.5 (160.8) 4,874.6 7 9

Segment revenues 4,874.6 601.4 23.7 (487.8) 5,011.9 3 12

Revenues $ 4,874.6 601.4 23.7 (487.8) 5,011.9 3 12

Operating profit:

4 unchanged sentences

Segment operating profit 754.6 174.4 1.7 (157.9) 772.8 2 23

Corporate (d)

Corporate expenses (d)

(139.6) (12.4) — 8.6 (143.4) 3 9

Operating profit - non-GAAP 550.3 119.8 16.1 (71.2) 615.0 12 22

Other items not allocated to segments (e)

Other items not allocated to segments (d)

(189.8) (48.0) 8.6 52.8 (176.4) (7) 25

Operating profit (loss) - GAAP $ 361.3 150.6 31.8 (118.5) 425.2 18 42

Operating profit

$ 425.2 114.0 10.3 (96.5) 453.0 7 27

Amounts may not add due to rounding.

(a) Non-GAAP amounts include the impact of prior year comparable period results for acquired and disposed businesses.

GAAP results also include the impact of acquisition-related intangible amortization, restructuring and other charges, and disposition related gains/losses.

(b) The amounts in the “Currency” column consist 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.

(d) Corporate expenses are not allocated to segment results.

Corporate expenses include salaries and other costs to manage the global business and to perform activities required by public companies.

(e) See pages 28 – 30 for more information.

(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 34 .

(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 34 .

(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 34 .

(d) See page 26 - 29 for further information, where these items are discussed in more detail.

Analysis of Segment Results:

2 unchanged sentences

Revenues increased 3% ($48.6 million) primarily due to a 2% organic increase ($36.6 million) and the favorable impact of acquisitions ($13.9 million), partially offset by the unfavorable impact of currency exchange rates ($1.9 million) from the Canadian dollar.

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

partially offset by volume reductions due to the rationalization of our customer portfolio to optimize profitability and lower BGS revenue.

Operating profit increased ($26.1 million), primarily due to a 16% organic increase ($25.2 million), the favorable impact of acquisitions ($0.8 million), and favorable impact of currency exchange rates ($0.1 million).

The organic increase resulted primarily from higher revenue which outpaced the impact of labor and other cost increases, the impact of cost savings related to restructuring primarily in the U.S., and cost productivity.

A change in estimation methodology resulted in a $16.7 million incremental bad debt expense recorded in the first quarter of 2022 that was associated with U.S.

aged receivables.

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

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

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 ($8.8 million), primarily due to a 4% organic increase ($7.6 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.

Latin America

Revenues increased 10% ($121.7 million) primarily due to a 23% organic increase of ($282.0 million) and the favorable impact of acquisitions ($2.5 million), partially offset by the unfavorable impact of currency exchange rates ($162.8 million), primarily from the Argentine peso partially offset by favorable impact from the Mexican peso.

Revenues decreased 2% ($21.3 million) primarily due to the unfavorable impact of currency exchange rates ($485.3 million), primarily from the Argentine peso, mostly offset by a 35% organic increase ($461.8 million) and the favorable impact of acquisitions ($2.2 million).

The organic increase was driven by inflation-based price increases across the segment and growth in AMS and DRS revenue.

Operating profit was up 1% ($2.6 million) primarily due to a 28% organic increase ($77.4 million) and the favorable impact of acquisitions ($0.8 million), partially offset by unfavorable currency exchange rates ($75.6 million).

The organic increase was driven by higher revenue which outpaced the impact of labor and other cost increases.

Revenues increased 22% ($205.4 million) due to the favorable impact of the NoteMachine acquisition ($107.0 million), a 8% organic increase ($71.4 million), and the favorable impact of currency exchange rates ($27.0 million).

The favorable currency impact was driven by the euro.

Operating profit decreased 3% ($8.0 million) due to the unfavorable currency exchange rates ($156.9 million) largely offset by a 53% organic increase ($149.0 million).

The organic increase was driven by organic revenue growth which outpaced the impact of labor and other cost increases.

Revenues increased 8% ($90.6 million) due to a 7% organic increase ($82.3 million) and the favorable impact of acquisitions ($7.6 million).

The organic increase was primarily due to price increases throughout the segment and the growth of AMS and DRS revenue.

Operating profit increased ($26.6 million) primarily due to the favorable impact of acquisitions ($13.5 million), an organic increase ($9.1 million), and the favorable impact of currency exchange rates ($4.0 million).

Operating profit increased ($12.9 million) primarily due to an organic increase ($12.2 million) and the favorable impact of acquisitions ($0.8 million).

The organic increase was primarily driven by higher revenue which outpaced the impact of labor and other cost increases and the revenue mix benefit of higher AMS and DRS revenue.

Rest of World

Revenues decreased 1% ($5.0 million) due to the unfavorable impact of currency exchange rates ($20.5 million) and dispositions ($7.2 million), partially offset by a 3% organic increase ($22.7 million).

Revenues increased 2% ($19.4 million) due a 3% organic increase ($20.7 million).

The organic increase was primarily due to growth in AMS and DRS.

Operating profit increased $0.2 million primarily due to a 2% organic increase ($3.3 million) and the favorable impact of dispositions ($1.0 million), partially offset by the unfavorable impact of currency exchange rates ($4.1 million), driven by most currencies throughout the segment.

The disposition impact relates to the disposition of our Russian based operations.

The organic increase was primarily due to the impact of labor and other operational cost saving actions throughout the segment and the revenue mix benefit of higher AMS and DRS revenue.

Income and Expense Not Allocated to Segments

Operating profit increased $4.5 million primarily due to a 3% organic increase ($5.6 million).

The organic increase was primarily due to the revenue mix benefit of higher AMS and DRS revenue.

Analysis of Income and Expenses Not Allocated to Segments:

2024 versus 2023

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

Years Ended December 31, % change

(In millions) 2023 2022 2021 2023 2022

(In millions, except for percentages)

2024 2023 2022 2024 2023

General, administrative and other expenses $ (167.2) (152.8) (161.5) 9 (5)

Foreign currency transaction gains (losses) 15.3 10.9 2.7 40 fav

Reconciliation of segment policies to GAAP (2.1) 1.8 (17.5) unfav fav

Foreign currency transaction gains (losses) 23.9 15.3 10.9 56 40

Reconciliation of segment policies to GAAP (0.1) (2.1) 1.8 (95) unfav

Corporate expenses $ (143.4) (139.6) (148.8) 3 (6)

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

Corporate expenses in 2023 decreased $9.2 million versus the prior year.

This was primarily driven by lower net compensation costs, including share-based compensation and bonus accruals ($24.1 million), as well as an increase in foreign currency transaction gains ($4.4 million).

These lower costs were partially offset by increased charges related to insurance and security losses ($10.8 million), higher professional fees ($5.3 million) and higher bad debt expense ($3.5 million) reported as part of the reconciliation of segment policies to U.S.

Historically, all Brink’s business units followed an internal accounting policy for determining an allowance for doubtful accounts.

The allowances were then reconciled to the required U.S.

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

In 2021, the Corporate reconciling adjustment was an increase of Corporate expense of $17.5 million.

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

This change resulted in a $12.3 million increase to Corporate expense offset by a $12.3 million operating profit increase in the North America segment, resulting in no impact to consolidated operating profit for the first quarter of 2021.

We changed the U.S.

calculation of the allowance in order to more closely align it with the U.S.

GAAP consolidated calculation and to minimize reconciling differences.

Other than for the U.S.

business, the reconciling differences were not significant.

The bad debt expense increase excludes the impact of the internal loss in our U.S.

global services operations described on the page 30 .

Corporate expenses in 2024 increased by $3.8 million versus the prior year.

This was primarily driven by higher net compensation costs, including share-based compensation and bonus accruals ($11.8 million), partially offset by higher foreign currency transaction gains ($8.6 million).

Other Items Not Allocated to Segments

Years Ended December 31, % change

(In millions) 2023 2022 2021 2023 2022

Operating profit:

(In millions, except for percentages)

2024 2023 2022 2024 2023

Reorganization and restructuring

$ (1.5) (17.6) (38.8) (91) (55)

Acquisitions and dispositions (62.5) (70.6) (86.6) (11) (18)

Argentina highly inflationary impact (86.8) (41.7) (11.9) unfav unfav

Argentina highly inflationary impact (35.0) (86.8) (41.7) (60) unfav

Transformation initiatives

(28.4) (5.5) — unfav unfav

DOJ/FinCEN investigations

(45.7) — — unfav —

1 unchanged sentence

(2.0) (8.0) — (75) unfav

Change in allowance estimate — (15.6) — (100) unfav

Ship loss matter — (4.9) — (100) unfav

Chile antitrust matter (0.5) (1.4) (9.5) (64) (85)

Internal loss — — 21.1 — (100)

Reporting compliance (0.8) — — unfav —

Operating profit $ (189.8) (189.0) (115.8) — 63

Change in allowance estimate — — (15.6) — (100)

Ship loss matter — — (4.9) — (100)

Chile antitrust matter (1.3) (0.5) (1.4) unfav (64)

Reporting compliance — (0.8) — (100) —

Total Other items not allocated to segments

$ (176.4) (189.8) (189.0) (7) —

Reorganization and restructuring

Costs associated with certain reorganization and restructuring actions are excluded from reported non-GAAP results.

These items primarily include 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 disclosed restructuring program 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.

In total, we have recognized $34.0 million in charges under this program, including $0.8 million in 2024.

We expect total expenses from the program to be between $38 million and $42 million.

When completed, the current restructuring actions are expected to reduce our workforce by 3,200 to 3,400 positions and result in annualized cost savings of approximately $60 million.

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

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

As a result of these actions, we recognized $43.6 million of net costs in 2021, primarily severance costs.

As a result of other restructuring actions, we recognized $16.6 million of net costs in 2022, primarily severance costs.

We recognized $6.6 million of net costs in 2023, primarily severance costs.

We recognized $0.7 million of net costs in 2024.

The majority of the costs in both 2023 and 2022 periods result from the exit of a line of business in a specific geography with most of the remaining costs due to management initiatives to address the COVID-19 pandemic.

Due to the unique circumstances around these charges, they have not been allocated to segment results and are excluded from non-GAAP results.

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

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:

Years Ended December 31, % change

(In millions) 2023 2022 2021 2023 2022

(In millions, except for percentages)

2024 2023 2022 2024 2023

Reportable Segments:

North America $ (4.2) (11.8) 0.1 (64) unfav

North America $ (0.5) $ (4.2) (11.8) (88) (64)

Latin America (0.3) (4.9) (15.7) (94) (69)

1 unchanged sentence

Rest of World — (1.2) (1.2) (100) —

Total reportable segments (16.4) (38.4) (43.7) (57) (12)

Corporate items (1.2) (0.4) 0.1 unfav unfav

Total $ (17.6) (38.8) (43.6) (55) (11)

Acquisitions and dispositions Certain acquisition and disposition items that are not considered part of the ongoing activities of the business

and are special in nature are consistently excluded from segment and non-GAAP results.

Total excluded from reportable segments

(1.5) (16.4) (38.4) (91) (57)

Excluded from Corporate expenses

— (1.2) (0.4) (100) unfav

Total Reorganization and restructuring costs

$ (1.5) $ (17.6) (38.8) (91) (55)

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:

1 unchanged sentence

• Amortization expense for acquisition-related intangible assets was $58.3 million in 2024.

• Net charges of $2.4 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions.

• We incurred $1.1 million in integration costs in 2024.

• A net credit of $1.3 million related to the reversal of a retention liability for key PAI employees was recorded in 2024.

2023 Acquisitions and Dispositions Items

• Amortization expense for acquisition-related intangible assets was $57.8 million in 2023.

• We derecognized a contingent consideration liability related to the NoteMachine business acquisition and recognized a gain of $4.8 million.

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• We recognized $4.9 million in charges in Argentina in 2023 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.

• Net charges of $3.4 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions.

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• Compensation expense related to the retention of key PAI employees was $3.5 million in 2022.

2021 Acquisitions and Dispositions Items

• Amortization expense for acquisition-related intangible assets was $47.7 million in 2021.

• We incurred $10.5 million in integration costs related primarily to G4S in 2021.

• Transaction costs related to business acquisitions were $6.5 million in 2021.

• Restructuring costs related to acquisitions were $5.3 million in 2021.

• Compensation expense related to the retention of key PAI employees was $1.8 million in 2021.

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

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In 2023, we recognized $86.8 million in pretax charges related to highly inflationary accounting, including currency remeasurement losses of $79.1 million.

In December 2023, the administration of the newly inaugurated President of Argentina allowed the peso to devalue by more than 50%.

In total, in 2023, the Argentine peso declined approximately 79%.

In 2024, we recognized $35.0 million in pretax charges related to highly inflationary accounting, including currency remeasurement losses of $18.4 million.

These amounts are excluded from segment and 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

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.

The program is designed to help us standardize our commercial and operational systems and processes, drive continuous improvement and achieve operational excellence.

Accordingly, we have incurred $5.5 million of expense in 2023.

The transformation costs primarily include third party professional services and project management charges and are excluded from segment and non-GAAP results.

Accordingly, we incurred $5.5 million of expense in 2023 and an additional $28.4 million in 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.

DOJ/FinCEN investigations During 2024, we accrued $45.7 million in connection with the DOJ and FinCEN investigations, which was primarily related to cross-border shipments of cash and things of value and anti-money laundering and Bank Secrecy Act compliance.

This amount represents an estimate of $42.0 million for the resolutions with the DOJ and FinCEN, as well as $3.7 million of third-party legal costs associated with this matter.

These costs are not considered part of the Company's operations and revenue generating activities.

Additionally, the nature of these amounts, including 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 23 for details.

Chile antitrust matter We recognized an estimated loss of $9.5 million in the third quarter of 2021 and recognized additional amounts in subsequent years (which were primarily related to changes in currency rates).

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 23 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 $10.0 million charge.

Due to the unusual nature of the contingency, we have excluded this charge from segment and non-GAAP results.

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 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 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.

Ship loss matter In 2015, Brink’s placed cargo containing customer valuables on a ship which suffered extensive damages and losses of cargo.

Our cargo did not suffer any damage.

However, the ship owner declared a "general average claim," an ancient maritime law principle, to recover losses from customers with undamaged cargo based on the pro rata value of ship cargo.

In the fourth quarter of 2022, we recognized a $4.9 million charge for our estimate of the probable loss.

Due to the unusual nature of the events that led to the charge, a similar charge is not reasonably likely to recur within two years, nor were similar costs incurred within the prior two years.

Management has excluded this amount when evaluating internal performance.

Therefore, it has not been allocated to segment or Corporate results and is excluded from non-GAAP results.

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

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It also considered current and expected economic conditions 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.

As many of our regions began to recover from the COVID-19 pandemic, we 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.

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In the subsequent 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 these amounts when evaluating internal performance, we have excluded these amounts from segment and non-GAAP results.

Ship loss matter In 2015, Brink’s placed cargo containing customer valuables on a ship which suffered damages and losses.

Brink’s cargo did not suffer any damage.

The ship owner declared a general average claim to recover losses to the ship and cargo from customers with undamaged cargo, including Brink’s, based on the pro rata value of ship cargo.

Brink’s continues to defend itself against the claim.

In the fourth quarter of 2022, we recognized a $4.9 million charge for our estimate of the probable loss.

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

Chile antitrust matter We recognized an estimated loss of $9.5 million in the third quarter of 2021 related to a potential fine.

In 2022, we recognized an additional $1.4 million adjustment and, in 2023, we recognized an additional $0.5 million adjustment to our estimated loss.

The adjustments result from a change in currency rates.

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

See Note 23 for details.

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

global services operations embezzled funds from Brink's in prior years.

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.

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

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

We also recognized $1.3 million of legal charges in 2021 as we attempted to collect additional insurance recoveries related to these receivables losses.

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

In 2022 and 2023, we did not incur any charges related to the internal loss.

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

Reporting compliance Certain compliance costs (primarily third party expenses) are excluded from segment and non-GAAP results.

In 2023, we incurred $0.8 million in costs related to remediation of the material weakness.

We did not incur any such costs in 2022 or 2021.

The charge and credit were not reflective of the Company's operations and revenue generating activities in the periods recorded.

Additionally, given the unusual nature of the events that led to the charge (i.e.

the COVID-19 pandemic), a similar charge is not reasonably likely to recur within two years, nor were similar costs incurred 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.

Other Operating Income and Expense

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Years Ended December 31, % change

(In millions) 2023 2022 2021 2023 2022

(In millions, except for percentages)

2024 2023 2022 2024 2023

Foreign currency items:

Transaction losses $ (85.1) (68.7) (30.5) 24 unfav

Derivative instrument gains (losses) 21.3 42.0 24.2 (49) 74

Transaction gains (losses)

$ 16.5 (85.1) (68.7) fav 24

Derivative instrument gains (losses) (11.0) 21.3 42.0 unfav (49)

Royalty income 8.0 7.5 9.1 7 (18)

Impairment losses (4.8) (10.3) (9.0) (53) 14

Indemnification asset adjustments (3.4) (7.8) — (56) unfav

Indemnification asset adjustments (2.4) (3.4) (7.8) (29) (56)

Contingent consideration liability adjustments

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Share in earnings of equity method affiliates 3.0 2.8 2.1 7 33

Insurance recoveries - Internal Loss — — 18.8 — (100)

Gains related to litigation — — 4.4 — (100)

Indemnity for forced relocation — — 1.7 — (100)

Other 5.5 4.9 4.3 12 14

Other operating income (expense) $ (54.2) (25.3) 20.0 unfav unfav

Other operating income (expense) $ 18.7 (54.2) (25.3) fav unfav

2024 versus 2023

We reported other operating expense of $54.2 million in 2023 versus other operating expense of $25.3 million in the prior year.

The change was primarily due to higher net losses of $37.1 million from foreign currency items in 2023 driven by remeasurement losses due to the highly inflationary economy in Argentina.

The higher currency losses were partially offset by gains from contingent consideration liability adjustments in 2023 along with lower losses due to acquisition-related tax indemnification asset adjustments in the current year.

We reported other operating income of $18.7 million in 2024 versus other operating expense of $54.2 million in the prior year.

The change was primarily due to net gains of $5.5 million from foreign currency items in 2024 as compared to net losses of $63.8 million from foreign currency items in 2023.

This change was driven primarily by lower currency remeasurement losses in 2024 related to highly inflationary accounting in Argentina.

The foreign currency items above do not include business acquisition-related currency items which are reported in interest and other nonoperating income (expense).

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Years Ended December 31, % change

(In millions) 2023 2022 2021 2023 2022

(In millions, except for percentages)

2024 2023 2022 2024 2023

Interest expense $ 235.4 203.8 138.8 16 47

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Years Ended December 31, % change

(In millions) 2023 2022 2021 2023 2022

(In millions, except for percentages)

2024 2023 2022 2024 2023

Interest income $ 48.9 36.3 23.6 35 54

Gain (loss) on equity and debt securities 5.0 (12.8) — fav unfav

Foreign currency transaction gains (losses) 0.3 (1.1) 2.4 fav unfav

Retirement benefit cost other than service cost (0.2) (0.5) (16.7) (60) (97)

Foreign currency transaction gains (losses) (a)

(1.1) 2.4 0.4 unfav fav

Non-income taxes on intercompany billings (b)

(2.6) (2.3) (3.9) 13 (41)

Argentina turnover tax (c)

(6.8) (1.8) — unfav unfav

Gain (loss) on equity and debt securities (d)

(12.8) — 16.0 — (100)

G4S indemnification asset adjustment (e)

Argentina turnover tax (3.4) (6.8) (1.8) (50) unfav

Non-income taxes on intercompany billings

(2.1) (2.6) (2.3) (19) 13

Other 1.9 (1.5) 4.4 fav unfav

Other 0.2 1.9 (1.5) (89) fav

Interest and other nonoperating income (expense) $ 48.7 14.4 3.7 fav fav

(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 Latin America segment results and are eliminated in our consolidation.

(c) State government tax incurred by our subsidiaries in Argentina on financial income generated by investments in mutual funds and other financial instruments.

(d) In 2023, the loss is primarily related to the impact of highly inflationary accounting on investments in marketable securities held by Argentina.

In 2021, the gain was 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.

(e) Adjustments 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.

Interest and other nonoperating income (expense) was higher in 2023 compared to 2022 primarily due to interest income on surplus cash in money market investments.

Further, the company experienced a reduction in retirement benefit costs attributed to lower amortization of actuarial losses from the prior year.

Interest and other nonoperating income (expense) was higher in 2024 compared to 2023 primarily due to gains on equity and debt securities in 2024 versus losses in the prior year.

The 2023 losses were primarily related to the impact of highly inflationary accounting on investments in marketable securities held by Argentina.

Higher income in 2024 was also driven by an increase in interest income on surplus cash in money market investments, including in Argentina.

The change from 2022 to 2023 was caused mainly by a reduction in retirement benefit costs attributed to lower amortization of actuarial losses.

Refer to Note 4 for further explanation.

Summary Rate Reconciliation – GAAP

Summary Reconciliation of Effective Income Tax Rate to U.S.

Federal Tax Rate

(In percentages)

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Acquisition costs — 0.2 —

Nondeductible fines and penalties

Other (0.2) (2.1) 1.9

Income tax rate on continuing operations 59.0 % 18.3 % 51.1 %

Summary Rate Reconciliation – Non-GAAP (a)

(In percentages)

Effective income tax rate on continuing operations

34.8 % 59.0 % 18.3 %

federal tax rate 21.0 % 21.0 % 21.0 %

Increases (reductions) in taxes due to:

Foreign rate differential 7.0 5.4 6.1

Adjustments to valuation allowances 4.2 2.4 1.4

French business tax 0.2 0.4 0.4

Other (7.6) 1.1 4.7

Income tax rate on Non-GAAP continuing operations 24.8 % 30.3 % 33.6 %

(a) See pages 35 – 37 for a reconciliation of non-GAAP results to GAAP.

Our effective tax rate has varied in the past three years from the statutory U.S.

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We are continuing to monitor the pending implementation of Pillar Two by individual countries and the potential effects of Pillar Two on our business.

We do not expect the provisions effective in 2024 will have a materially adverse impact on our results of operations, financial position or cash flows.

Continuing Operations

2023 Compared to U.S.

The provisions effective in 2024 did not have a material impact on our results of operations, financial position or cash flows, and we do not expect the provisions in 2025 to have a materially adverse impact on our results of operations, financial position or cash flows.

2024 Effective Income Tax Rate Compared to U.S.

Statutory Rate

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statutory tax rate primarily due to the geographical mix of earnings, nondeductible expenses in Mexico, taxes on cross border payments and U.S.

taxable income and credit

limitations, the increase of valuation allowances on U.S.

foreign tax credits, and Argentina nondeductible inflation net of deductible Argentina inflation adjustments.

2022 Compared to U.S.

taxable income and credit limitations, U.S.

taxable income and credit limitations, and Argentina nondeductible inflation, net of deductible Argentina inflation adjustments.

2023 Effective Income Tax Rate Compared to U.S.

Statutory Rate

The effective income tax rate on continuing operations in 2022 was less than the 21% U.S.

statutory tax rate primarily due to the release of valuation allowances on U.S.

tax credits deemed realizable as a result of the issuance of U.S.

final foreign tax credit regulations, offset by the geographical mix of earnings, book losses for which no tax benefit can be recorded, nondeductible expenses in Mexico, taxes on cross border payments and U.S.

taxable income limitations, and the characterization of a French business tax as an income tax.

The effective income tax rate on continuing operations in 2023 was greater than the 21% U.S.

statutory tax rate primarily due to the geographical mix of earnings, nondeductible expenses in Mexico, taxes on cross border payments and U.S.

taxable income and credit limitations, the increase of valuation allowances on U.S.

foreign tax credits, and Argentina nondeductible inflation, net of deductible Argentina inflation adjustments.

Noncontrolling Interests

Years Ended December 31, % change

(In millions) 2023 2022 2021 2023 2022

(In millions, except for percentages)

2024 2023 2022 2024 2023

Net income attributable to noncontrolling interests $ 11.8 10.6 11.3 11 (6)

Compared to 2022, the decrease in net income attributable to noncontrolling interests to $10.6 million in 2023 is primarily due to the acquisition of noncontrolling interest in the second half of 2022.

Compared to 2021, the decrease in net income attributable to noncontrolling interests to $11.3 million in 2022 is primarily due to lower 2022 operating results reported by certain less than wholly-owned subsidiaries in Asia.

Non-GAAP Results Reconciled to GAAP

Non-GAAP results described in this filing are financial measures that are not required by or presented in accordance with GAAP.

The purpose of the Non-GAAP results 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.

The specific items excluded have not been allocated to segments, are described in detail on pages 28 – 30 , and are reconciled to comparable GAAP measures below.

The full-year Non-GAAP tax rate in each year excludes certain pretax and income tax amounts.

Amounts reported for prior periods have been updated in this report to present information consistently for all periods presented.

The Non-GAAP financial measures are intended to provide investors with a supplemental comparison of our operating results and trends for the periods presented.

The increase in the net income attributable to noncontrolling interests in 2024, in comparison to 2023, is primarily attributable to higher 2024 operating results reported by certain subsidiaries that are not wholly-owned.

The decrease in the net income attributable to noncontrolling interests in 2023, in comparison to 2022, is primarily due to the acquisition of noncontrolling interests in the second half of 2022.

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.

We do not consider these items to be reflective of our operating performance as they result from events and circumstances that are not a part of our core business.

Additionally, non-GAAP results are utilized as performance measures in certain management incentive compensation plans.

Non-GAAP results should not be considered as an alternative to revenue, income or earnings per share amounts determined in accordance with GAAP and should be read in conjunction with their GAAP counterparts.

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 earnings per share ("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 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 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 44 for more details.

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 26 – 29 .

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.

In 2024, we released an incremental valuation allowance on deferred tax assets that was otherwise expected to expire and recorded a tax credit.

The gains and charges related to major tax law changes that impacted U.S.

foreign tax credits.

These gains and charges 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.

Non-GAAP Reconciled to GAAP

2024 2023 2022

(In millions, except for percentages) Pre-tax income Income tax Effective tax rate Pre-tax income Income tax Effective tax rate Pre-tax income Income tax Effective tax rate

Effective Income Tax Rate (a)

(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)

Pre-tax income (a)

Income tax Effective income tax rate (a)

GAAP $ 266.3 92.7 34.8 % $ 235.8 139.2 59.0 % $ 226.2 41.4 18.3 %

Retirement plans (c)

(9.0) (2.0) 11.1 2.9 29.8 7.7

Reorganization and Restructuring (b)

Reorganization and restructuring (c)

1.5 0.2 17.6 3.4 38.8 8.2

Acquisitions and dispositions (b)

Acquisitions and dispositions (c)

62.1 5.2 72.6 8.9 85.2 20.7

Argentina highly inflationary impact (b)

Argentina highly inflationary impact (c)

36.3 (5.1) 142.0 (4.5) 45.6 (2.0)

Transformation initiatives (b)

Transformation initiatives (c)

28.4 0.7 5.5 0.1 — —

Non-routine auto loss matter (b)

DOJ/FinCEN investigations (c)

45.7 — — — — —

Change in allowance estimate (b)

Chile antitrust matter (c)

1.3 0.3 0.5 0.1 1.4 0.5

Valuation allowance on tax credits (d)

Non-routine auto loss matter (c)

2.0 — 8.0 0.2 — —

Ship loss matter (b)

Change in allowance estimate (c)

— — — — 15.6 3.7

Chile antitrust matter (b)

Ship loss matter (c)

— — — — 4.9 1.3

Internal loss (b)

Reporting compliance (c)

— — 0.8 — — —

Reporting compliance (b)

Retirement plans (b)

(8.4) (0.1) (9.0) (2.0) 11.1 2.9

Deferred tax valuation allowance (e)

Valuation allowance on tax credits (b)

— 7.1 — (27.8) — 53.2

2 unchanged sentences

(a) From continuing operations.

(b) See “Other Items Not Allocated To Segments” on pages 28 – 30 for details.

We do not consider these items to be reflective of our operating performance as they result from events and circumstances that are not a part of our core business.

retirement plans are frozen and costs related to these plans are excluded from non-GAAP results.

Certain non-U.S.

operations also have retirement plans.

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

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

retirement plans are also excluded from non-GAAP results.

(d) In 2023, we recorded a portion of our valuation allowance on certain U.S.

deferred tax assets primarily related to foreign tax credit carryforward attributes.

The valuation allowance increase was due to new foreign tax credit Notices published by the U.S.

Internal Revenue Service in 2023, which provided taxpayers relief from the 2022 foreign tax credit regulations until additional guidance is issued and effective date of such guidance is provided.

In 2022, we released a portion of our valuation allowance on certain U.S.

deferred tax assets primarily due to new foreign tax credit regulations published by the U.S.

Treasury in January 2022.

(e) There was a change in judgement resulting in a valuation allowance against certain tax attributes with a limited statutory carryforward period that are no longer more-likely-than-not to be realized due to lower than expected Canada operating results.

(f) Amounts include interest incurred on a cross currency swap hedging foreign currency risk on the intercompany financing of the Rodoban acquisition.

Non-GAAP reconciled to GAAP

(b) See "Reconciliations of Non-GAAP to GAAP Measures" on page 35 for details.

Years Ended December 31,

(In millions) 2023 2022 2021

(In millions, except for per share amounts)

2024 2023 2022

Operating profit:

GAAP $ 453.0 425.2 361.3

Reorganization and restructuring (a)

1.5 17.6 38.8

Acquisitions and dispositions (a)

62.5 70.6 86.6

Argentina highly inflationary impact (a)

35.0 86.8 41.7

Transformation initiatives (a)

DOJ/FinCEN investigations (a)

Chile antitrust matter (a)

Non-routine auto loss matter (a)

Ship loss matter (a)

Reporting compliance (a)

Change in allowance estimate (a)

Non-GAAP $ 629.4 615.0 550.3

Operating profit:

Income from continuing operations attributable to Brink's:

GAAP $ 161.8 86.0 173.5

Reorganization and Restructuring (b)

Reorganization and restructuring (a)

1.3 14.2 30.5

Acquisitions and dispositions (b)

Acquisitions and dispositions (a)

55.9 62.7 63.5

Argentina highly inflationary impact (b)

Argentina highly inflationary impact (a)

41.4 146.5 47.6

Transformation initiatives (b)

Non-routine auto loss matter (b)

Change in allowance estimate (b)

Ship loss matter (b)

Chile antitrust matter (b)

Internal loss (b)

Reporting compliance (b)

Transformation initiatives (a)

DOJ/FinCEN investigations (a)

Chile antitrust matter (a)

Non-routine auto loss matter (a)

Ship loss matter (a)

Reporting compliance (a)

Retirement plans (b)

(8.3) (7.0) 8.1

Change in allowance estimate (a)

Valuation allowance on tax credits (b)

(7.1) 27.8 (53.2)

Non-GAAP $ 321.4 344.6 286.4

Non-GAAP operating profit margin

Adjusted EBITDA:

Net income attributable to Brink's

$ 162.9 87.7 170.6

Interest expense

GAAP $ (203.8) (138.8) (112.2)

Acquisitions and dispositions (b)(f)

Non-GAAP $ (203.0) (137.6) (110.9)

Interest and other nonoperating income (expense):

GAAP $ 14.4 3.7 (7.0)

Retirement plans (c)

235.4 203.8 138.8

Acquisitions and dispositions (b)(g)

Income tax provision

92.7 139.2 41.4

Argentina highly inflationary impact (b)

Non-GAAP $ 61.8 16.1 18.8

Provision for income taxes:

GAAP $ 139.2 41.4 120.3

Retirement plans (c)

Depreciation and amortization

293.3 275.8 245.8

Reorganization and Restructuring (b)

Acquisitions and dispositions (b)(f)

Argentina highly inflationary impact (b)

EBITDA $ 784.3 706.5 596.6

Discontinued operations

(1.1) (1.7) 2.9

Transformation initiatives (b)

Non-routine auto loss matter (b)

Change in allowance estimate (b)

Valuation allowance on tax credits (d)

Reorganization and restructuring (a)

1.5 16.4 37.7

Ship loss matter (b)

Chile antitrust matter (b)

Internal loss (b)

Reporting compliance (b)

Deferred tax valuation allowance (e)

Non-GAAP $ 117.6 129.9 127.0

Amounts may not add due to rounding.

See page 35 for footnote explanations.

Non-GAAP reconciled to GAAP

Years Ended December 31,

(In millions, except for per share amounts) 2023 2022 2021

Net income (loss) attributable to noncontrolling interests:

GAAP $ 10.6 11.3 12.1

Retirement plans (c)

Reorganization and Restructuring (b)

Acquisitions and dispositions (b)

Non-GAAP $ 11.6 12.5 13.5

Income (loss) from continuing operations attributable to Brink's:

GAAP $ 86.0 173.5 103.1

Retirement plans (c)

Acquisitions and dispositions (a)

2.8 13.0 30.9

Reorganization and Restructuring (b)

Argentina highly inflationary impact (a)

24.3 136.6 42.7

Acquisitions and dispositions (b)

Transformation initiatives (a)

DOJ/FinCEN investigations (a)

Chile antitrust matter (a)

Non-routine auto loss matter (a)

Ship loss matter (a)

Reporting compliance (a)

Retirement plans (b)

(8.4) (9.0) 11.0

Argentina highly inflationary impact (b)

Change in allowance estimate (a)

Valuation allowance on tax credits (b)

Share-based compensation (c)

36.6 33.0 48.6

Transformation initiatives (b)

Non-routine auto loss matter (b)

Change in allowance estimate (b)

Valuation allowance on tax credits (d)

Marketable securities (gain) loss (d)

(5.5) (42.4) (4.0)

Ship loss matter (b)

Chile antitrust matter (b)

Internal loss (b)

Reporting compliance (b)

Deferred tax valuation allowance (e)

Non-GAAP $ 344.6 286.4 237.9

Adjusted EBITDA $ 911.9 867.2 788.3

Years Ended December 31,

(In millions, except for per share amounts) 2024 2023 2022

GAAP $ 3.61 1.83 3.63

Retirement plans (c)

Reorganization and restructuring (a)

0.03 0.30 0.64

Reorganization and Restructuring (b)

Acquisitions and dispositions (a)

1.25 1.33 1.33

Acquisitions and dispositions (b)

Argentina highly inflationary impact (a)

0.92 3.13 1.00

Argentina highly inflationary impact (b)

Transformation initiatives (a)

DOJ/FinCEN investigations (a)

Chile antitrust matter (a)

0.02 0.01 0.02

Transformation initiatives (b)

Non-routine auto loss matter (b)

Change in allowance estimate (b)

Valuation allowance on tax credits (d)

Non-routine auto loss matter (a)

Ship loss matter (a)

Reporting compliance (a)

Retirement plans (b)

(0.19) (0.15) 0.17

Ship loss matter (b)

Chile antitrust matter (b)

Change in allowance estimate (a)

Valuation allowance on tax credits (b)

(0.16) 0.59 (1.11)

Internal loss (b)

Reporting compliance (b)

Deferred tax valuation allowance (e)

Non-GAAP $ 7.17 7.35 5.99

Amounts may not add due to rounding.

See page 35 for footnote explanations.

(a) See “Other Items Not Allocated To Segments” on pages 26 - 29 for details.

(b) See "Reconciliations of GAAP to Non-GAAP Measures" on page 35 for details.

(c) 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.

(d) Due to the impact of Argentina's highly inflationary accounting, there was a $55.2 million non-GAAP adjustment for a loss in 2023, and a $1.3 million non-GAAP adjustment in 2024.

Foreign Operations

6 unchanged sentences

government sanctioned the Venezuela central bank and, as a result, we have ceased support of our Venezuela business.

At December 31, 2024, Argentina's economy remained highly inflationary for accounting purposes.

See Note 1 for more details about our Argentina operations including a description of how we account for currency remeasurement for our Argentine subsidiaries and the potential impacts of converting local currency into U.S.

Our international operations conduct a majority of their business in local currencies.

2 unchanged sentences

Recent strengthening of the U.S.

dollar relative to certain currencies has reduced our reported dollar revenues and operating profit, which may continue in 2024.

See Application of Critical Accounting Policies—Foreign Currency Translation on pages 57 –58 for a description of our accounting methods and assumptions used to include our Argentina operations in our consolidated financial statements, and a description of the accounting for subsidiaries operating in highly inflationary economies.

See also Note 1 to the consolidated financial statements for a description of how we account for currency remeasurement for our Argentine subsidiaries, beginning July 1, 2018 under the heading, "Argentina".

At December 31, 2023, Argentina's economy remains highly inflationary for accounting purposes.

At December 31, 2023, we had net monetary assets denominated in Argentine pesos of $72.1 million (including cash of $62.5 million) and nonmonetary net assets of $141.9 million (including $99.8 million of goodwill, $1.1 million in equity securities denominated in Argentine pesos and $5.6 million in debt securities denominated in pesos).

We have previously elected to use other market mechanisms to convert Argentine pesos into U.S.

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

We did not have any such conversion losses in the last three years.

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.

dollar relative to certain currencies has reduced our reported dollar revenues and operating profit.

Future fluctuations in exchange rates could have either a positive or negative impact on our financial results.

Changes in exchange rates may also affect transactions which are denominated in currencies other than the functional currency of a given foreign entity.

From time to time, we use short term foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies, as discussed in Item 7A on pages 58 - 59 .

At December 31, 2023, the notional value of our short term outstanding foreign currency forward and swap contracts was $678 million with average contract maturities of approximately one month.

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

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

At December 31, 2023, the fair value of our short term foreign currency contracts was a net liability of $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 consolidated balance sheet.

At December 31, 2022, the fair value of these 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.

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

Twelve Months Ended December 31,

(In millions) 2023 2022 2021

Derivative instrument gains (losses) included in other operating income (expense) $ 21.3 42.0 24.2

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.

This cross currency swap contract matured and was fully settled in the fourth quarter of 2023.

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

Before final settlement occurred in the fourth quarter 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:

Twelve Months Ended December 31,

(In millions) 2023 2022 2021

Derivative instrument gains (losses) included in other operating income (expense)

$ (7.9) (8.9) 0.2

Offsetting transaction gains (losses)

7.9 8.9 (0.2)

Derivative instrument losses included in interest expense (0.8) (1.3) (1.3)

Net derivative instrument losses

(8.7) (10.2) (1.1)

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.

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

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

See Note 12 for more details regarding our economic hedges.

We have entered into cross currency swaps and foreign exchange forward swap contracts to hedge a portion of our net investments in certain of our subsidiaries with euro and Hong Kong dollar 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.

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 December 31, 2023, the notional value of these cross currency swap contracts was $400 million with a remaining weighted average maturity of 2.0 years for the cross currency swaps maturing in May 2026 and a remaining weighted average maturity of 6.3 years for the cross currency swaps with maturity in April 2031.

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 consolidated balance sheet.

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, 2023, the fair value of the zero cost collar was an asset of $0.1 million included in other assets on the 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.

At December 31, 2023, the notional value of this foreign exchange forward swap contract was $55 million with a remaining weighted average maturity of 0.9 years.

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 consolidated balance sheet.

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

Twelve Months Ended December 31,

(In millions) 2023 2022 2021

Net derivative instrument gains included in interest expense $ (5.2) (5.8) (4.1)

See Note 12 for more details regarding these contracts.

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 This cross currency swap contract matured and was fully settled in 2023.

See Note 12 for more details about this contract.

LIQUIDITY AND CAPITAL RESOURCES

2 unchanged sentences

Over the last three years, we used cash generated from our operations and borrowings to

• acquire new business operations ($500 million),

• invest in the infrastructure of our business (new facilities, cash sorting and other equipment for our cash management services operations, armored trucks, DRS devices, and information technology) ($608 million),

• repurchase shares of Brink's common stock ($422 million), and

• repurchase shares of Brink's common stock ($426 million),

• acquire new business operations ($209 million), and

• pay dividends to Brink’s shareholders ($119 million).

Cash flows from operating activities increased by $222.5 million in 2023 as compared to the prior year primarily due to higher operating profit, working capital changes, lower amounts paid for income taxes, changes in customer obligations related to certain of our secure cash management services operations and an increase in restricted cash held for customers, partially offset by higher amounts paid for interest.

Cash used for investing activities decreased by $151.4 million in 2023 due to lower amounts paid for business acquisitions in 2023.

Cash flows from operating activities decreased by $(276.4) million in 2024 as compared to the prior year primarily due to changes in customer obligations related to certain of our secure cash management services operations, a decrease in restricted cash held for customers and higher amounts paid for income taxes and interest, partially offset by improvements in working capital excluding taxes and interest.

Cash used for investing activities increased by $36.4 million in 2024 due to net outflows related to purchases and sales of marketable securities in 2024 versus net inflows in the prior year.

Cash also decreased $95.2 million in 2024 as a result of the strengthening of the U.S.

dollar in 2023, primarily against the Argentine peso.

We financed our liquidity needs in 2023 with cash flows from operations.

dollar in 2024, primarily against the euro, Mexican peso and Argentine peso.

We financed our liquidity needs in 2024 with debt and cash flows from operations.

Operating Activities

1 unchanged sentence

(In millions) 2024 2023 2022 2024 2023

Cash flows from operating activities

Operating activities - GAAP $ 702.4 479.9 478.0 $ 222.5 1.9

(Increase) decrease in restricted cash held for customers (59.5) (50.0) (60.2) (9.5) 10.2

(Increase) decrease in certain customer obligations (a)

Cash flows provided from (used in) operating activities - GAAP

$ 426.0 702.4 479.9 $ (276.4) 222.5

G4S intercompany payments — — 2.6 — (2.6)

Operating activities - non-GAAP $ 576.9 379.9 404.7 $ 197.0 (24.8)

(a) To adjust for the change in the balance of customer obligations related to cash received and processed in certain of our secure cash management services operations.

The title to this cash transfers to us for a short period of time.

The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the management of our liquidity and capital resources.

Non-GAAP cash flows from operating activities is a supplemental financial measure that is not required by, or presented in accordance with, GAAP.

The purpose of this non-GAAP measure is to report financial information excluding cash flows from restricted cash held for customers, the impact of cash received and processed in certain of our secure cash management services operations and the impact of payments made to G4S for net intercompany receivables from the acquired subsidiaries.

We believe this measure is helpful in assessing cash flows from operations, enables period-to-period comparability and is useful in predicting future operating cash flows.

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

(Increase) decrease in restricted cash held for customers (see Note 20)

42.9 (59.5) (50.0) 102.4 (9.5)

(Increase) decrease in customer obligations

77.7 (66.0) (50.0) 143.7 (16.0)

Capital expenditures

(222.5) (202.7) (182.6) (19.8) (20.1)

Cash proceeds from sale of property and equipment

29.2 18.4 5.7 10.8 12.7

Proceeds from lessor debt financing (see Note 20) 46.6 7.5 19.4 39.1 (11.9)

Free cash flow before dividends (a)

$ 399.9 400.1 222.4 $ (0.2) 177.7

(a) Free cash flow before dividends is a supplemental financial measure that is not required by, or presented in accordance with, GAAP.

See page 34 for further information on this non-GAAP measure, and see page 35 for descriptions of the adjustments.

2024 versus 2023

Cash flows from operating activities increased by $222.5 million in 2023 compared to 2022.

The increase was attributed to higher operating profit (operating profit was $425.2 million in 2023 compared to $361.3 million in 2022), lower amounts paid for income taxes (we had $96.3 million in cash payments for taxes in 2023 as compared to $127.8 million in 2022), working capital changes (we had cash received of $164.5 million in 2023 compared to cash payments of $12.1 million in 2022), changes in customer obligations related to certain of our secure cash management services operations (certain customer obligations increased by $66.0 million in 2023 compared to an increase of $50.0 million in 2022) and restricted cash held for customers (restricted cash held for customers increased by $59.5 million in 2023 compared to an increase of $50.0 million in 2022), partially offset by higher amounts paid for interest (we had $195.8 million in cash payments for interest in 2023 as compared to $117.5 million in 2022).

Non-GAAP cash flows from operating activities increased by $197.0 million in 2023 as compared to 2022.

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

Cash flows from operating activities - GAAP

Cash flows from operating activities decreased by $276.4 million in 2024 compared to 2023.

The decrease was attributed to changes in customer obligations related to certain of our secure cash management services operations (certain customer obligations decreased by $77.7 million in 2024 compared to an increase of $66.0 million in 2023), restricted cash held for customers (restricted cash held for customers decreased by $42.9 million in 2024 compared to an increase of $59.5 million in 2023), higher amounts paid for income taxes (we had $122.1 million in cash payments for taxes in 2024 as compared to $96.3 million in 2023), and higher amounts paid for interest (we had $235.3 million in cash payments for interest in 2024 as compared to $195.8 million in 2023), partially offset by improvements in working capital excluding taxes and interest.

Working capital improvements resulted primarily from an ongoing focus on certain key levers, in particular more timely collection of trade accounts receivable and optimizing payment terms to vendors.

Our cash flows may continue to be affected by certain discretionary actions we may take with customers and suppliers.

In 2024, these actions involved, among others, centrally managing more of our overall spend and negotiating with suppliers to optimize our payment terms and conditions, including focused activity in the fourth quarter that included extending timing of payments to certain vendors.

These actions contributed to an increase in trade accounts payable (amounts increased by $78.7 million in 2024 compared to a decrease of $18.0 million in 2023) included in the consolidated statements of cash flows line “Increase (decrease) in accounts payable, income taxes payable, and accrued liabilities” as well as continued improvements in trade accounts receivable (amounts decreased $40.2 million in 2024 and decreased $56.0 million in 2023) included in the consolidated statements of cash flows line “(Increase) decrease in accounts receivable and income taxes receivable”.

Our efforts to improve working capital continue in 2025 as we work to formalize extended terms for more vendors and manage more of our spend in a centralized, global manner.

Future working capital performance contemplates a continuation of these efforts.

Free cash flow before dividends - non-GAAP

Free cash flow before dividends was relatively flat compared to 2023, down $0.2 million.

Higher amounts paid for income taxes, higher amounts paid for interest, and higher amounts paid for capital expenditures (we had $222.5 million in capital expenditures in 2024 compared to $202.7 million in 2023) were mostly offset by higher proceeds from lessor debt financing (we received $46.6 million in proceeds in 2024 compared to $7.5 million in 2023), and working capital changes discussed above.

In 2024, as noted above, we took actions focused on working capital improvements.

We also increased our use of leases to finance the acquisition of assets used in the business in order to better align cash inflows and outflows.

Investing Activities

8 unchanged sentences

Sales 57.2 150.4 11.7 (93.2) 138.7

Proceeds from sale of property, equipment and investments 18.4 5.7 7.7 12.7 (2.0)

Proceeds from sale of property and equipment

29.2 18.4 5.7 10.8 12.7

Proceeds from settlement of cross currency swap — — 64.3 — (64.3)

3 unchanged sentences

Investing activities $ (216.2) (179.8) (331.2) $ (36.4) 151.4

Cash used by investing activities decreased by $151.4 million in 2023 as compared to 2022.

The decrease was primarily due to decreased payments for acquisitions in 2023 (we had $1.5 million in cash paid for acquisitions in 2023 compared to $173.9 million in 2022), increases in cash received for the net purchases and sales of marketable securities (we had $15.7 million in net cash received compared to $18.6 million in net cash paid in 2022) and a decrease in cash paid for loans held for investment (cash paid for loans held for investment increased by $11.1 million in 2023 compared to an increase of $25.9 million in 2022), as discussed in Note 20.

This was partially offset by the proceeds from the settlement of the euro cross currency swaps in 2022, as discussed in Note 12.

Cash used by investing activities increased by $36.4 million in 2024 as compared to 2023.

The increase was primarily due to increases in cash paid for the net purchases and sales of marketable securities (we had $14.6 million in net cash paid in 2024 compared to $15.7 million in net cash received in 2023), increases in cash paid for capital expenditures and increases in cash paid for acquisitions 2024.

This was partially offset by a decrease in cash received for loans held for investment (we received $7.1 million for loans held for investment in 2024 compared to payments of $11.1 million in 2023), as discussed in Note 20.

Capital expenditures and depreciation and amortization were as follows:

8 unchanged sentences

Corporate 4.4 7.4 6.2 (3.0) 1.2

Capital expenditures - GAAP and non-GAAP $ 202.7 182.6 167.9 $ 20.1 14.7

Financing leases (b):

Capital expenditures $ 222.5 202.7 182.6 $ 19.8 20.1

Financing leases :

North America $ 38.4 59.4 46.3 $ (21.0) 13.1

2 unchanged sentences

Rest of World 1.9 0.2 0.4 1.7 (0.2)

Financing leases - GAAP and non-GAAP $ 92.0 65.7 85.9 $ 26.3 (20.2)

Financing leases $ 75.1 92.0 65.7 $ (16.9) 26.3

North America $ 101.0 103.2 87.7 $ (2.2) 15.5

9 unchanged sentences

Rest of World 26.2 24.4 23.6 1.8 0.8

Total reportable segments 219.5 206.1 181.4 13.4 24.7

Corporate 3.5 5.3 8.4 (1.8) (3.1)

Depreciation and amortization - non-GAAP 211.4 189.8 189.2 21.6 0.6

Argentina highly inflationary impact 12.0 5.4 2.9 6.6 2.5

Reorganization and restructuring

— 1.2 1.0 (1.2) 0.2

Acquisitions and dispositions — — 0.1 — (0.1)

Amortization of intangible assets 57.8 52.0 47.7 5.8 4.3

Depreciation and amortization - GAAP $ 275.8 245.8 239.5 $ 30.0 6.3

(a) Incremental depreciation related to highly inflationary accounting in Argentina, accelerated depreciation related to restructuring activities and acquisition-related integration activities, and amortization of acquisition-related intangible assets have also been excluded from non-GAAP amounts.

(b) Represents the amount of property and equipment acquired using financing leases.

Because the assets are acquired without using cash, the acquisitions are not reflected in the consolidated statements of cash flows.

Amounts are provided here to assist in the comparison of assets acquired in the current year versus prior years.

Non-GAAP capital expenditures and non-GAAP depreciation and amortization are supplemental financial measures that are not required by, or presented in accordance with GAAP.

The purpose of these non-GAAP measures is to report financial information excluding incremental depreciation resulting from highly inflationary accounting in Argentina, accelerated depreciation from restructuring activities and acquisition-related integration activities, and amortization of acquisition-related intangible assets.

We believe these measures are helpful in assessing capital expenditures and depreciation and amortization, enable period-to-period comparability and are useful in predicting future investing cash flows.

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

Depreciation and amortization of property and equipment

$ 235.0 218.0 193.8 $ 17.0 24.2

Amortization of intangible assets (a)

58.3 57.8 52.0 0.5 5.8

Total depreciation and amortization

$ 293.3 275.8 245.8 $ 17.5 30.0

(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 year divided by the annual amount of depreciation, was 1.3 in 2024, 1.4 in 2023, and 1.3 in 2022.

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Total property and equipment acquired in 2024 was $2.9 million higher than the prior year.

This increase was primarily due to an increase in investments in information technology, armored vehicles and DRS devices.

Corporate capital expenditures in the last three years were primarily for investing in information technology.

This increase was primarily due to an increase in investments in armored vehicles and DRS devices.

Corporate capital expenditures in the last three years were primarily for IT investments.

Financing Activities

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Noncontrolling interests in subsidiaries (6.1) (7.7) (7.1) 1.6 (0.6)

Acquisition-related financing activities:

Settlement of acquisition-related contingencies — — 6.2 — (6.2)

Payment of acquisition-related obligation (0.8) (11.1) (2.8) 10.3 (8.3)

Proceeds from exercise of stock options — — 2.3 — (2.3)

Tax withholdings associated with share-based compensation (18.6) (8.0) (12.2) (10.6) 4.2

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Financing activities $ 42.2 (207.1) 245.2 $ 249.3 (452.3)

2023 versus 2022

Cash flows from financing activities decreased by $452.3 million in 2023 compared to 2022 as we had net cash used in financing activities of $207.1 million in 2023 compared to net cash provided by financing activities of $245.2 million in 2022.

The change was driven by a decrease in net borrowings compared to the prior year.

Additionally, we used an additional $117.7 million to repurchase shares of common stock in the current year (we used $169.9 million in cash to repurchase shares of common stock in 2023, compared to $52.2 million in 2022).

We paid dividends to Brink’s shareholders of $0.22 per share in each of the last three quarters, paid $0.20 per share in the eight quarters prior, and $0.15 per share in the first quarter of 2021.

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

Debt borrowings and repayments

Cash flows from financing activities increased by $249.3 million in 2024 compared to 2023 as we had net cash provided by financing activities of $42.3 million in 2024 compared to net cash used in financing activities of $207.1 million in 2023.

The change was driven primarily by an increase in net borrowings (as discussed in Note 15) compared to the prior year, partially offset by increased cash used to to repurchase shares of common stock in the current year (we used $203.6 million in cash to repurchase shares of common stock in 2024, compared to $169.9 million in 2023).

We paid dividends to Brink’s shareholders of $0.9475 per share or $41.8 million in 2024 compared to $0.86 per share or $39.6 million in 2023 and $0.80 per share or $37.6 million in 2022.

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

Effect of Exchange Rate Changes on Cash and Cash Equivalents

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The decrease in 2024 was due to the strengthening of the U.S.

dollar in 2023, primarily against the Argentine peso, partially offset with the weakening of the U.S.

dollar against the Mexican peso and euro.

dollar in 2024, primarily against the euro, Mexican peso, and Argentine peso.

Capitalization

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Revolving Facility $ 600.3 $ 399.7 542.1 (142.4)

Term Loan A — 1,343.5 1,377.4 (33.9)

— 1,292.2 1,343.5 (51.3)

Senior Unsecured Notes — 1,387.8 994.4 393.4

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$ 2,582.2 2,520.9 $ 61.3

(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.

(b) Included within Net Debt is net cash from our Argentina operations of $63 million at December 31, 2023 and $58 million at December 31, 2022 (see Note 1 to the consolidated financial statements for a discussion of currency controls in Argentina).

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

We use Net Debt as a measure of our financial leverage.

We believe that investors also may find Net Debt to be helpful in evaluating our financial leverage.

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

Set forth above is a reconciliation of Net Debt, a non-GAAP financial measure, to Debt, which is the most directly comparable financial measure calculated and reported in accordance with GAAP, as of December 31, 2023, and December 31, 2022.

Net debt at the end of 2023 increased by $5 million when compared to Net debt at the end of 2022 to fund corporate purposes and other working capital needs.

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

See page 34 for further information on this non-GAAP measure, and see page 35 for a description of the adjustment.

Included within Net Debt is net cash from our Argentina operations of $104 million at December 31, 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 at the end of 2024 increased versus the prior year to provide funding for corporate purposes and other working capital needs.

Liquidity Needs

Our operating liquidity needs are typically financed by cash from operations, short-term borrowings and the available borrowing capacity under our $1 billion revolving credit facility ("Revolving Credit Facility") (our debt facilities are described in more detail in Note 15 to the consolidated financial statements, including certain limitations and considerations related to the cash and borrowing capacity).

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 15 to the consolidated financial statements,

including certain limitations and considerations related to the cash and borrowing capacity).

As of December 31, 2024, $600 million was available under the Revolving Credit Facility.

Based on our current cash on hand, amounts available under our credit facilities and current projections of cash flows from operations, we believe that we will be able to meet our liquidity needs for more than the next twelve months.

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.

Based on our current 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 Item 1A., Risk Factors , for more information on the risks associated with having businesses outside the U.S.

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

In October 2021, we announced that our Board of Directors authorized a $250 million share repurchase program (the "2021 Repurchase Program").

During the twelve months ended December 31, 2024, we repurchased a total of 2,108,544 shares of our common stock for an aggregate of $203.6 million and an average price of $96.54 per share.

These shares were retired upon repurchase.

At December 31, 2024, $296 million remained available under the 2023 Repurchase Program.

In October 2021, we announced that our Board 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.

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The 2021 Repurchase Program expired on December 31, 2023 with approximately $28 million remaining available.

Our Board of Directors previously authorized a $250 million repurchase program (the "2020 Repurchase Program") in February 2020.

Our Board previously authorized a $250 million repurchase program (the "2020 Repurchase Program") in February 2020.

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

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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.

In 2022, we received 546,993 additional shares upon the termination of an ASR.

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

April 2022 (a)

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

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

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

Off Balance Sheet Arrangements

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Payment from Brink’s — — — 1.3 5.5 1.5

Benefit plan actuarial loss

Benefit plan actuarial gain (loss)

3.1 (7.6) (5.4) (3.3) (2.3) (1.6)

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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.

Department of Justice (the “DOJ”), 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.

Treasury’s Financial Crimes Enforcement Network (“FinCEN”) related to Bank Secrecy Act/AML compliance that involves substantially the same conduct that was the subject to the DOJ’s investigation.

On January 31, 2025, Brink’s Global Services USA, a subsidiary of the Company, entered into a Consent Order Imposing Civil Money Penalty with FinCEN and a Non-Prosecution Agreement (the “NPA”) with the DOJ, to fully resolve these matters.

As part of these resolutions, the Company agreed to pay $42 million to these agencies over three years, beginning in January 2025 and, as of December 31, 2024, accrued $42 million for the settlement amounts.

The Company agreed to pay FinCEN $17 million (which represents the amount due after crediting $20 million to the Company’s payment to the DOJ from the total $37 million penalty assessed by FinCEN).

The Company agreed to pay $25 million to the DOJ (which represents the amount due after crediting $5 million for the Company’s swift resolution and acceptance of responsibility as well as $20 million that will be forgiven at the end of the two-year term of the NPA so long as the Company has not breached the NPA).

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.

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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 and, in 2023, we recognized an additional $0.5 million adjustment to our estimated loss.

The adjustments resulted from changes in currency rates.

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

After the third quarter of 2021, all adjustments to the contingent liability have resulted primarily from changes in currency rates.

In addition to the matters discussed above, 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.

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Deferred Tax Assets

We had $175 million of net deferred tax assets at December 31, 2023, of which $170 million in deferred tax assets are related to U.S.

We had $176 million of net deferred tax assets at December 31, 2024, of which $183 million in gross deferred tax assets are related to U.S.

jurisdictions.

In 2024, we concluded that we were more-likely-than-not to realize assets related to certain attributes with a limited statutory carryforward and we recorded a $7 million valuation allowance benefit through income from continuing operations and an additional $2 million valuation allowance reduction through other comprehensive income (loss).

In 2023, we concluded that we were not more-likely-than-not to realize assets related to certain attributes with a limited statutory carryforward, and we recorded a $33 million valuation allowance detriment through income from continuing operations and an additional $1 million valuation allowance increase through other comprehensive income (loss).

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pension plan and 8.00% for our UMWA retiree medical plans for projected 2025 expense.

The twenty to thirty year compound annual return of our primary U.S.

pension plan has averaged from 6.2% to 7.6%.

Sensitivity Analysis

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pension plan would have been different if our accounting policy were to use the fair market value of plan assets instead of the market-related value to recognize investment gains and losses.

(In millions)

Based on market-related value of assets Hypothetical (a)

(In millions) Based on market-related value of assets Hypothetical (a)

Actual Projected Projected

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For the UMWA plans, our largest retiree medical plans, we have assumed a medical inflation rate of 6.5% for 2025, and we project this rate to decline to 5% in 2031 and hold at 5% thereafter.

Our overall medical inflation rate assumption, including the assumption that medical inflation rates will gradually decline over the next eight years and hold at 5%, is based on macroeconomic assumptions of gross domestic growth rates, the excess of national health expenditures over other goods and services, and population growth.

Our overall medical inflation rate assumption, including the assumption that medical inflation rates will gradually decline over the next seven years and hold at 5%, is based on macroeconomic assumptions of gross domestic growth rates, the excess of national health expenditures over other goods and services, and population growth.

Our assumption of a medical inflation rate of 6.5% for 2025 is based on the above-described factors, combined with our recent actual experience.

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For the year ended December 31, 2023, the Argentine peso declined by approximately 79% (from 178.6 to 833.3 pesos to the U.S.

For the year ended December 31, 2023, the Argentine peso declined approximately 79% (from 178.6 to 833.3 pesos to the U.S.

For the year ended December 31, 2024, the Argentine peso declined by approximately 19% (from 833.3 to 1,031.0 pesos to the U.S.

Beginning July 1, 2018, we designated Argentina's economy as highly inflationary for accounting purposes.

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At December 31, 2024, we had net monetary assets denominated in Argentine pesos of $115.9 million, including cash of $104.0 million.

At December 31, 2023, we had net nonmonetary assets of $141.9 million (including $99.8 million of goodwill, $1.1 million in equity securities denominated in Argentine pesos and $5.6 million in debt securities denominated in Argentine pesos).

At December 31, 2024, we had net nonmonetary assets of $147.5 million (including $103.1 million of goodwill and $21.2 million in debt securities denominated in Argentine pesos).

At December 31, 2023, we had net monetary assets denominated in Argentine pesos of $72.1 million (including cash of $62.5 million) and net nonmonetary assets of $141.9 million (including $99.8 million of goodwill, $1.1 million in equity securities denominated in Argentine pesos and $5.6 million in debt securities denominated in Argentine pesos).

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

What changed 10-K

Item 7. Management’s Discussion and Analysis