BRINKS CO 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA THE BRINK’S COMPANY CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2024 AND 2023 AND FOR EACH OF THE YEARS IN THE THREE-YEAR PERIOD ENDED DECEMBER 31, 2024 TABLE OF CONTENTS Page REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Report of Independent Registered Public Accounting Firm - (PCAOB ID 185 ) 61 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets 62 Consolidated Statements of Operations 63 Consolidated Statements of Comprehensive Income (Loss) 64 Consolidated Statements of Equity 65 Consolidated Statements of Cash Flows 65 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 – Summary of Significant Accounting Policies 66 Note 2 – Revenue from Contracts with Customers 71 Note 3 – Segment Information 74 Note 4 – Retirement Benefits 79 Note 5 – Income Taxes 89 Note 6 – Property and Equipment 92 Note 7 – Acquisitions and Dispositions 93 Note 8 – Goodwill and Other Intangible Assets 94 Note 9 – Prepaid Expenses and Other 96 Note 10 – Other Assets 96 Note 11 – Accumulated Other Comprehensive Income (Loss) 97 Note 12 – Fair Value of Financial Instruments 100 Note 13 – Accrued Liabilities 104 Note 14 – Other Liabilities 104 Note 15 – Debt 105 Note 16 – Accounts Receivable and Credit Losses 108 Note 17 – Leases 109 Note 18 – Share-Based Compensation Plans 111 Note 19 – Capital Stock 116 Note 20 – Supplemental Cash Flow Information 117 Note 21 – Other Operating Income (Expense) 118 Note 22 – Interest and Other Nonoperating Income (Expense) 118 Note 23 – Other Commitments and Contingencies 119 Note 24 – Reorganization and Restructuring 119 60 Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors The Brink's Company: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of The Brink's Company and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 26, 2025 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Sufficiency of Audit Evidence over Revenue As discussed in Note 2 to the Company’s consolidated financial statements, the Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The Company’s operations are disbursed among many countries. The Company recorded $ 5,011.9 million of revenue for the year ended December 31, 2024. We identified the evaluation of the sufficiency of audit evidence over revenue as a critical audit matter. Subjective auditor judgment was required to evaluate the sufficiency of audit evidence over revenue, including determining the locations for which procedures were performed, because of the geographical dispersion of the Company’s revenue generating activities. The following are the primary procedures we performed to address this critical audit matter. We applied auditor judgment to determine the nature and extent of procedures to be performed over revenue, including the determination of the locations for which those procedures were to be performed. At each Company location for which procedures were performed, we evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s revenue process. For a sample of revenue transactions, we compared the amounts recognized by the Company to relevant underlying documentation such as contracts with customers and cash receipts, or other third-party evidence. At one location, we also performed a software-assisted data analysis to test relationships among certain revenue transactions. We evaluated the sufficiency of audit evidence obtained by assessing the results of procedures performed, including the appropriateness of the nature and extent of audit effort. /s/ KPMG LLP We have served as the Company’s auditor since 2020. Richmond, Virginia February 26, 2025 61 THE BRINK’S COMPANY and subsidiaries Consolidated Balance Sheets December 31, (In millions, except for per share amounts) 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 1,395.3 1,176.6 Restricted cash 445.1 507.0 Accounts receivable (net of allowance: 2024 - $ 24.5 ; 2023 - $ 30.4 ) 733.5 779.0 Prepaid expenses and other 314.0 325.7 Total current assets 2,887.9 2,788.3 Right-of-use assets, net 354.9 337.7 Property and equipment (net of accumulated depreciation and amortization: 2024 - $ 1,633.2 ; 2023 - $ 1,620.1 ) 982.7 1,013.3 Goodwill 1,434.9 1,473.8 Other intangibles (net of accumulated amortization: 2024 - $ 321.3 ; 2023 - $ 278.7 ) 422.3 488.3 Deferred income taxes 239.2 231.8 Other 301.2 268.6 Total assets $ 6,623.1 6,601.8 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings $ 149.3 151.7 Current maturities of long-term debt 141.7 117.1 Accounts payable 316.6 249.7 Accrued liabilities 1,058.1 1,126.9 Restricted cash held for customers 232.7 298.7 Total current liabilities 1,898.4 1,944.1 Long-term debt 3,605.2 3,262.5 Accrued pension costs 122.5 148.5 Retirement benefits other than pensions 111.5 159.6 Lease liabilities 278.6 265.8 Deferred income taxes 62.8 56.5 Other 231.6 244.6 Total liabilities $ 6,310.6 6,081.6 Commitments and contingent liabilities (notes 4, 5, 15, 17, 23 and 24) Equity: The Brink’s Company (“Brink’s”) shareholders: Common stock, par value $ 1 per share: Shares authorized: 100.0 Shares issued and outstanding: 2024 - 42.9 ; 2023 - 44.5 42.9 44.5 Capital in excess of par value 660.7 675.9 Retained earnings 285.4 333.0 Accumulated other comprehensive income (loss): Benefit plan adjustments ( 260.4 ) ( 302.2 ) Foreign currency translation ( 556.7 ) ( 368.2 ) Unrealized losses on available-for-sale securities ( 3.3 ) ( 1.8 ) Unrealized gains on cash flow hedges 16.3 16.2 Accumulated other comprehensive loss ( 804.1 ) ( 656.0 ) Brink’s shareholders 184.9 397.4 Noncontrolling interests 127.6 122.8 Total equity 312.5 520.2 Total liabilities and equity $ 6,623.1 6,601.8 See accompanying notes to consolidated financial statements. 62 THE BRINK’S COMPANY and subsidiaries Consolidated Statements of Operations Years Ended December 31, (In millions, except for per share amounts) 2024 2023 2022 Revenues $ 5,011.9 4,874.6 4,535.5 Costs and expenses: Cost of revenues 3,743.1 3,707.1 3,461.9 Selling, general and administrative expenses 834.5 688.1 687.0 Total costs and expenses 4,577.6 4,395.2 4,148.9 Other operating income (expense) 18.7 ( 54.2 ) ( 25.3 ) Operating profit 453.0 425.2 361.3 Interest expense ( 235.4 ) ( 203.8 ) ( 138.8 ) Interest and other nonoperating income (expense) 48.7 14.4 3.7 Income from continuing operations before tax 266.3 235.8 226.2 Provision for income taxes 92.7 139.2 41.4 Income from continuing operations 173.6 96.6 184.8 Income (loss) from discontinued operations, net of tax 1.1 1.7 ( 2.9 ) Net income 174.7 98.3 181.9 Less net income attributable to noncontrolling interests 11.8 10.6 11.3 Net income attributable to Brink’s $ 162.9 87.7 170.6 Amounts attributable to Brink’s: Continuing operations $ 161.8 86.0 173.5 Discontinued operations 1.1 1.7 ( 2.9 ) Net income attributable to Brink’s $ 162.9 87.7 170.6 Earnings (loss) per share attributable to Brink’s common shareholders (a) : Basic: Continuing operations $ 3.65 1.86 3.67 Discontinued operations 0.03 0.04 ( 0.06 ) Net income 3.68 1.90 3.61 Diluted: Continuing operations $ 3.61 1.83 3.63 Discontinued operations 0.03 0.04 ( 0.06 ) Net income 3.63 1.87 3.57 Weighted-average shares Basic 44.3 46.2 47.3 Diluted 44.8 46.9 47.8 (a) Amounts may not add due to rounding. See accompanying notes to consolidated financial statements. 63 THE BRINK’S COMPANY and subsidiaries Consolidated Statements of Comprehensive Income (Loss) Years Ended December 31, (In millions) 2024 2023 2022 Net income $ 174.7 98.3 181.9 Net benefit plan adjustments: Net benefit plan actuarial adjustment 74.5 ( 3.9 ) 177.6 Net benefit plan prior service adjustment ( 18.0 ) ( 11.8 ) 61.7 Net deferred profit sharing adjustment ( 0.6 ) 0.4 ( 0.1 ) Total benefit plan adjustments 55.9 ( 15.3 ) 239.2 Net foreign currency translation adjustment ( 183.7 ) 58.2 ( 19.0 ) Net change on available-for-sale securities ( 6.7 ) 4.2 ( 0.9 ) Net change on cash flow hedges ( 2.1 ) ( 9.4 ) 37.6 Other comprehensive income (loss) before tax ( 136.6 ) 37.7 256.9 Provision (benefit) for income taxes 12.0 ( 4.5 ) 55.9 Other comprehensive income (loss) ( 148.6 ) 42.2 201.0 Comprehensive income 26.1 140.5 382.9 Less comprehensive income attributable to noncontrolling interests 11.3 8.3 5.0 Comprehensive income attributable to Brink’s $ 14.8 132.2 377.9 See accompanying notes to consolidated financial statements. 64 THE BRINK’S COMPANY and subsidiaries Consolidated Statements of Equity Years Ended December 31, 2024, 2023 and 2022 (In millions) Shares Common Stock Capital in Excess of Par Value Retained Earnings AOCI* Noncontrolling Interests Total Balance as of December 31, 2021 47.4 $ 47.4 670.6 312.9 ( 907.9 ) 129.6 252.6 Net income — — — 170.6 — 11.3 181.9 Other comprehensive income (loss) — — — — 207.3 ( 6.3 ) 201.0 Shares repurchased ( 1.5 ) ( 1.5 ) ( 22.1 ) ( 28.6 ) — — ( 52.2 ) Dividends to: Brink’s common shareholders ($ 0.8000 per share) — — — ( 37.6 ) — — ( 37.6 ) Noncontrolling interests — — — — — ( 7.1 ) ( 7.1 ) Share-based compensation: Stock options and awards: Compensation expense — — 48.6 — — — 48.6 Other share-based benefit transactions 0.4 0.4 ( 9.7 ) ( 0.1 ) — — ( 9.4 ) Acquisitions of noncontrolling interests (a) — — ( 3.3 ) — 0.1 ( 4.6 ) ( 7.8 ) Acquisitions with noncontrolling interests — — — — — 0.1 0.1 Capital contributions from noncontrolling interest — — — — — 0.1 0.1 Balance as of December 31, 2022 46.3 46.3 684.1 417.2 ( 700.5 ) 123.1 570.2 Net income — — — 87.7 — 10.6 98.3 Other comprehensive income (loss) — — — — 44.5 ( 2.3 ) 42.2 Shares repurchased (b) ( 2.3 ) ( 2.3 ) ( 38.9 ) ( 132.1 ) — — ( 173.3 ) Dividends to: Brink’s common shareholders ($ 0.8600 per share) — — — ( 39.6 ) — — ( 39.6 ) Noncontrolling interests — — — — — ( 7.7 ) ( 7.7 ) Share-based compensation: Stock options and awards: Compensation expense — — 32.1 — — — 32.1 Other share-based benefit transactions 0.5 0.5 ( 1.7 ) ( 0.2 ) — — ( 1.4 ) Acquisitions of noncontrolling interests — — 0.3 — — ( 0.9 ) ( 0.6 ) Balance as of December 31, 2023 44.5 44.5 675.9 333.0 ( 656.0 ) 122.8 520.2 Net income — — — 162.9 — 11.8 174.7 Other comprehensive loss — — — — ( 148.1 ) ( 0.5 ) ( 148.6 ) Shares repurchased (b) ( 2.1 ) ( 2.1 ) ( 34.6 ) ( 168.5 ) — — ( 205.2 ) Dividends to: Brink’s common shareholders ($ 0.9475 per share) — — — ( 41.8 ) — — ( 41.8 ) Noncontrolling interests — — — — — ( 6.1 ) ( 6.1 ) Share-based compensation: Stock options and awards: Compensation expense — — 36.5 — — — 36.5 Other share-based benefit transactions 0.5 0.5 ( 17.3 ) ( 0.2 ) — — ( 17.0 ) Acquisitions of noncontrolling interests — — 0.2 — — ( 0.4 ) ( 0.2 ) Balance as of December 31, 2024 42.9 $ 42.9 660.7 285.4 ( 804.1 ) 127.6 312.5 (a) This amount represents the impact of transactions in which we acquired or disposed of noncontrolling ownership interests in certain companies where we had an existing controlling interest prior to and after the related acquisition or disposal transactions. (b) Amounts do not agree to cash paid to repurchase shares in the consolidated statements of cash flows or Note 19. The difference is due to the timing of the cash settlements for shares repurchased near the end of the year plus the accrual of liabilities to pay excise taxes resulting from share repurchases. * Accumulated other comprehensive income (loss) See accompanying notes to consolidated financial statements. THE BRINK’S COMPANY and subsidiaries Consolidated Statements of Cash Flows Years Ended December 31, (In millions) 2024 2023 2022 Cash flows from operating activities: Net income $ 174.7 98.3 181.9 Adjustments to reconcile net income to net cash provided by operating activities: (Income) loss from discontinued operations, net of tax ( 1.1 ) ( 1.7 ) 2.9 Depreciation and amortization 293.3 275.8 245.8 Share-based compensation expense 36.5 32.1 48.6 Deferred income taxes ( 18.0 ) 22.7 ( 62.3 ) (Gain) loss on marketable securities, sale of property and equipment and derivatives ( 15.5 ) 10.9 0.7 Impairment losses 4.8 10.3 9.0 Retirement benefit funding (more) less than expense: Pension ( 6.1 ) ( 10.2 ) ( 3.7 ) Other than pension ( 8.1 ) ( 5.5 ) 7.9 Unrealized foreign currency (gains) losses ( 41.8 ) 79.1 37.6 Other operating 16.0 26.1 23.6 Changes in operating assets and liabilities, net of effects of acquisitions: (Increase) decrease in accounts receivable and income taxes receivable 15.6 69.0 ( 180.9 ) Increase (decrease) in accounts payable, income taxes payable and accrued liabilities 122.4 ( 36.3 ) 139.2 Increase (decrease) in restricted cash held for customers ( 42.9 ) 59.5 50.0 Increase (decrease) in customer obligations ( 77.7 ) 66.0 50.0 (Increase) decrease in prepaid and other current assets ( 15.5 ) 24.6 ( 56.7 ) Other ( 10.6 ) ( 18.3 ) ( 13.7 ) Net cash provided by operating activities 426.0 702.4 479.9 Cash flows from investing activities: Capital expenditures ( 222.5 ) ( 202.7 ) ( 182.6 ) Acquisitions, net of cash acquired ( 19.1 ) ( 1.5 ) ( 173.9 ) Dispositions, net of cash disposed — 1.1 — Marketable securities: Purchases ( 71.8 ) ( 134.7 ) ( 30.3 ) Sales 57.2 150.4 11.7 Cash proceeds from sale of property and equipment 29.2 18.4 5.7 Cash proceeds from settlement of cross currency swap — — 64.3 Net change in loans held for investment 7.1 ( 11.1 ) ( 25.9 ) Other 3.7 ( 0.6 ) ( 0.2 ) Discontinued operations — 0.9 — Net cash used in investing activities ( 216.2 ) ( 179.8 ) ( 331.2 ) Cash flows from financing activities: Borrowings (repayments) of debt: Short-term borrowings 12.9 98.6 37.7 Long-term revolving credit facilities: Borrowings 12,857.3 9,265.7 7,058.7 Repayments ( 12,865.0 ) ( 9,273.8 ) ( 6,832.7 ) Other long-term debt: Borrowings 847.4 25.4 189.9 Repayments ( 527.4 ) ( 97.1 ) ( 87.0 ) Acquisition of noncontrolling interests ( 0.2 ) ( 0.6 ) ( 7.8 ) Cash paid for acquisition related settlements and obligations ( 0.8 ) ( 11.1 ) ( 2.8 ) Debt financing costs ( 10.6 ) — ( 5.6 ) Repurchase shares of Brink's common stock ( 203.6 ) ( 169.9 ) ( 52.2 ) Dividends to: Shareholders of Brink’s ( 41.8 ) ( 39.6 ) ( 37.6 ) Noncontrolling interests in subsidiaries ( 6.1 ) ( 7.7 ) ( 7.1 ) Tax withholdings associated with share-based compensation ( 18.6 ) ( 8.0 ) ( 12.2 ) Other ( 1.3 ) 11.0 3.9 Net cash provided by (used in) financing activities 42.2 ( 207.1 ) 245.2 Effect of exchange rate changes on cash ( 95.2 ) ( 42.4 ) ( 70.1 ) Cash, cash equivalents and restricted cash: Increase 156.8 273.1 323.8 Balance at beginning of period 1,683.6 1,410.5 1,086.7 Balance at end of period $ 1,840.4 1,683.6 1,410.5 See accompanying notes to consolidated financial statements. 65 THE BRINK’S COMPANY and subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies Basis of Presentation The Brink’s Company (along with its subsidiaries, “we,” “our,” “Brink’s” or the “Company”), based in Richmond, Virginia, is a leading provider of cash and valuables management, digital retail solutions ("DRS"), and ATM managed services ("AMS") to financial institutions, retailers, government agencies, mints, jewelers and other commercial operations around the world. Brink’s is the oldest and largest secure transportation and cash management services company in the U.S., and a market leader in many other countries. Consolidation The consolidated financial statements include our controlled subsidiaries. Control is determined based on ownership rights or, when applicable, based on whether we are considered to be the primary beneficiary of a variable interest entity. See "Venezuela" section below for further information. For controlled subsidiaries that are not wholly-owned, the noncontrolling interests are included in net income and in total equity. Investments in businesses that we do not control, but for which we have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method and our proportionate share of income or loss is recorded in other operating income (expense). Investments in businesses for which we do not have the ability to exercise significant influence over operating and financial policies are accounted for at fair value, if readily determinable, with changes in fair value recognized in net income. For equity investments that do not have a readily determinable fair value, we measure these investments at cost minus impairment, if any, plus or minus changes from observable price changes. All intercompany accounts and transactions have been eliminated in consolidation. Revenue Recognition Revenue is recognized when services related to cash and valuables management, DRS, and AMS are performed. We assess our customers' ability to meet contractual terms, including payment terms, before entering into contracts. Taxes collected from customers and remitted to governmental authorities are not included in revenues in the consolidated statements of operations. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and investments with original maturities of three months or less. Cash and cash equivalents include amounts held by certain of our secure cash management services operations for customers for which, under local regulations, the title transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we do not consider it as available for general corporate purposes in the management of our liquidity and capital resources. We record a liability for the amounts owed to customers (see Note 13). Restricted Cash Cash that is held for a specific purpose and is not available for immediate or general business use due to external restrictions is classified in our consolidated balance sheets as restricted cash. In Malaysia, we offer ATM replenishment services to certain of our financial institution customers. Providing this service requires our Malaysia subsidiary to take temporary title to the cash received in advance of ATM replenishment. The cash for which we have temporary title is restricted and cannot be used for any other purpose other than to service our customers who participate in this service offering. In France, we offer services to certain of our customers where we manage some or all of their cash supply chains. In connection with this offering, we take temporary title to certain customers' cash, which is included as restricted cash in our financial statements due to customer agreement or regulation. In addition, in accordance with a revolving credit facility, we are required to maintain a restricted cash reserve and, due to this contractual restriction, we have classified these amounts as restricted cash (see Note 20). Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest. We assess the collectability of our receivables on a pool basis, which we aggregate by geographical location. We determine historical loss rates for each pool and these historical loss rates represent the primary assumption used in estimating the allowance for doubtful accounts. We monitor the aging of accounts receivables by country along with any significant economic events to identify any current or expected trends and risks within a pool that could impact the collectability of receivables that were not contemplated or relevant during a previous period. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Right-of-Use Assets For operating leases, right-of-use assets (and related lease liabilities) are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. See Note 17 for further information. Property and Equipment Property and equipment are recorded at cost. Depreciation is calculated principally on the straight-line method based on the estimated useful lives of individual assets or classes of assets. 66 Leased property and equipment meeting financing lease criteria are capitalized at the lower of the present value of the related lease payments or the fair value of the leased asset at the inception of the lease. Amortization is calculated on the straight-line method based on the lease term. See Note 17 for further information. Leasehold improvements are recorded at cost. Amortization is calculated principally on the straight-line method over the lesser of the estimated useful life of the leasehold improvement or the lease term. Renewal periods are included in the lease term when the renewal is determined to be reasonably assured. Part of the costs related to the development or purchase of internal-use software is capitalized and amortized over the estimated useful life of the software. Costs that are capitalized include external direct costs of materials and services to develop or obtain the software, and internal costs, including compensation and employee benefits for employees directly associated with a software development project. Estimated Useful Lives Years Buildings 25 Building leasehold improvements Lesser of Lease Term or 10 Vehicles 3 to 8 Capitalized software 5 Other machinery and equipment 3 to 10 Expenditures for routine maintenance and repairs on property and equipment are charged to expense. Major renewals, betterments and modifications are capitalized and depreciated over the lesser of the remaining life of the asset or, if applicable, the lease term. Goodwill and Other Intangible Assets Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. Intangible assets arising from business acquisitions include customer lists, customer relationships, developed technology, covenants not to compete, trademarks and other identifiable intangibles. At December 31, 2024, finite-lived intangible assets have remaining useful lives ranging from 1 to 12 years and are amortized based on the pattern in which the economic benefits are used or on a straight-line basis. Impairment of Goodwill and Long-Lived Assets Goodwill is not amortized but is tested for impairment at least annually, as of October 1, and whenever events or circumstances in interim periods indicate that it is more-likely-than-not that an impairment may have occurred. We perform the test of goodwill impairment at the reporting unit level, which is one level below an operating segment. Goodwill is assigned to one or more reporting units at the date of acquisition. When testing goodwill for impairment, we may assess qualitative factors to determine whether reporting unit fair values are greater than their carrying values. Alternatively, when performing a quantitative assessment, we estimate the fair value of each reporting unit using a weighting of two valuation methodologies: the Income Approach and the Public Company Market Multiple Method, with greatest weight placed on the Income Approach. The resulting reporting unit fair values are compared to each reporting unit's carrying value. . Indefinite-lived intangibles are also tested for impairment at least annually by comparing their carrying values to their estimated fair values. We have had no significant impairments of indefinite-lived intangibles in the last three years. Long-lived assets other than goodwill and other indefinite-lived intangibles are reviewed for impairment when events or changes in circumstances indicate the carrying value of an asset may not be recoverable. For long-lived assets other than goodwill that are to be held and used in operations, an impairment is indicated when the estimated total undiscounted cash flow associated with the asset or group of assets is less than carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. See Note 8 for further information. Retirement Benefit Plans We account for retirement benefit obligations under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 715, Compensation – Retirement Benefits . For U.S. and certain non-U.S. retirement plans, we derive the discount rates used to measure the present value of benefit obligations using the cash flow matching method. Under this method, we compare the plan’s projected payment obligations by year with the corresponding yields on a Mercer yield curve. Each year’s projected cash flows are then discounted back to their present value at the measurement date and an overall discount rate is determined. The overall discount rate is then rounded to the nearest tenth of a percentage point. We used Mercer’s Above-Mean Curve to determine the discount rates for the year-end benefit obligations and retirement cost of our U.S. retirement plans. We use a local or regional version of the Mercer yield curve in the majority of our non-U.S. locations. In non-U.S. locations where the cash flow matching method is not possible, rates of local high-quality long-term government bonds are used to select the discount rate. We select the expected long-term rate of return assumption for our U.S. pension plan and retiree medical plans using advice from our investment advisor. The selected rate considers plan asset allocation targets, expected overall investment manager performance and long-term historical average compounded rates of return. 67 Benefit plan actuarial gains and losses are recognized in other comprehensive income (loss). Accumulated net benefit plan actuarial gains and losses that exceed 10% of the greater of a plan’s benefit obligation or plan assets at the beginning of the year are amortized into earnings from other comprehensive income (loss) on a straight-line basis. The amortization period for pension plans is the average remaining service period of employees expected to receive benefits under the plans. The amortization period for other retirement plans is primarily the average remaining life expectancy of inactive participants. Income Taxes Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events that have been, or will be, reported in different years for financial statement purposes than tax purposes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which these items are expected to reverse. We recognize tax benefits related to uncertain tax positions if we believe it is more-likely-than-not the benefit will be realized. We review our deferred tax assets to determine if it is more-likely-than-not that they will be realized. If we determine it is not more-likely-than-not that a deferred tax asset will be realized, we record a valuation allowance to reverse the previously recognized tax benefit. See Note 5 for further information. Foreign Currency Translation Our consolidated financial statements are reported in U.S. dollars. Our foreign subsidiaries maintain their records primarily in the currency of the country in which they operate. The method of translating local currency financial information into U.S. dollars depends on whether the economy in which our foreign subsidiary operates has been designated as highly inflationary or not. Economies with a three-year cumulative inflation rate of more than 100% are considered highly inflationary. Assets and liabilities of foreign subsidiaries in non-highly inflationary economies are translated into U.S. dollars using rates of exchange at the balance sheet date. Translation adjustments are recorded in other comprehensive income (loss). Revenues and expenses are translated at rates of exchange in effect during the year. Transaction gains and losses are recorded in net income. Foreign subsidiaries that operate in highly inflationary countries use the U.S. dollar as their functional currency. Local currency monetary assets and liabilities are remeasured into U.S. dollars using rates of exchange as of each balance sheet date, with remeasurement adjustments and other transaction gains and losses recognized in earnings. Other than nonmonetary equity and available-for-sale debt securities, nonmonetary assets and liabilities do not fluctuate with changes in local currency exchange rates to the dollar. For nonmonetary equity securities traded in highly inflationary economies, the fair market value of the equity securities are remeasured at the current exchange rates to determine gain or loss to be recorded in net income. For nonmonetary available-for-sale debt securities traded in highly inflationary economies, the fair market value of these debt securities are remeasured at the current exchange rates, with changes recorded in the gains (losses) on available-for-sale securities component of accumulated other comprehensive income (loss). We reclassify amounts from accumulated other comprehensive income (loss) into earnings when these debt securities are sold. Revenues and expenses are translated at rates of exchange in effect during the year. See "Venezuela" and "Argentina" sections below for further information. Argentina We operate in Argentina through wholly owned subsidiaries and a smaller controlled subsidiary (together "Brink's Argentina"). Revenues from Brink's Argentina represented approximately 4 % of our consolidated revenues for the years ended December 31, 2024, 2023, and 2022. The operating environment in Argentina continues to present business challenges, including ongoing devaluation of the Argentine peso and significant inflation. For the year ended December 31, 2022, the Argentine peso declined by approximately 42 % (from 103.1 to 178.6 pesos to the U.S. dollar). 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. dollar). For the year ended December 31, 2024, the Argentine peso declined approximately 19 % (from 833.3 to 1,031.0 pesos to the U.S. dollar). Beginning July 1, 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, we consolidated Brink's Argentina using our accounting policy for subsidiaries operating in highly inflationary economies beginning with the third quarter of 2018. Argentine peso-denominated monetary assets and liabilities are now remeasured at each balance sheet date using the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In 2024, we recognized $ 18.4 million in pretax remeasurement losses. In 2023 and in 2022, we recognized $ 79.1 million and $ 37.6 million in pretax remeasurement losses, respectively. At December 31, 2024, Argentina's economy remained highly inflationary for accounting purposes. 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, 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). During September 2019, the Argentine government announced currency controls on both companies and individuals. The Argentine central bank issued details as to how the exchange control procedures would operate in practice. Under these procedures, central bank approval is required for many transactions, including dividend repatriation abroad. 68 We have previously elected to use other market mechanisms to convert Argentine pesos into U.S. dollars. Conversions under these other market mechanisms generally settle at rates that are less favorable than the rates at which we remeasure the financial statements of Brink’s Argentina. We did not have any such 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. Venezuela Our Venezuelan operations offer transportation and route-based logistics management services for cash and valuables throughout Venezuela. Currency exchange regulations, combined with other government regulations, such as price controls and strict labor laws, significantly limit our ability to make and execute operational decisions at our Venezuelan subsidiaries. As a result of the conditions, we do not meet the accounting criteria for control over our Venezuelan operations and, as a result, we began reporting the results of our investment in our Venezuelan subsidiaries using the cost method of accounting, the basis of which approximates zero. Prior to the imposition of the U.S. government sanctions, we provided immaterial amounts of financial support to our Venezuela operations. We continue to monitor the situation in Venezuela, including the imposition of sanctions by the U.S. government targeting Venezuela. Concentration of Credit Risks We routinely assess the financial strength of significant customers and this assessment, combined with the large number and geographic breadth of our customers, limits our concentration of risk with respect to accounts receivable. Financial instruments which potentially subject us to concentrations of credit risks are principally cash and cash equivalents and accounts receivables. Cash and cash equivalents are held by major financial institutions. Use of Estimates In accordance with U.S. generally accepted accounting principles (“GAAP”), we have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements. Actual results could differ materially from those estimates. The most significant estimates are related to goodwill, intangibles and other long-lived assets, pension and other retirement benefit assets and obligations, legal contingencies, allowance for doubtful accounts, deferred tax assets and purchase price allocations. In the first quarter of 2022, we further refined our global methodology of estimating the allowance for doubtful accounts. Our previous method to estimate currently expected credit losses in receivables (the allowance) was weighted significantly to a review of historical loss rates and specific identification of higher risk customer accounts. It also considered current and expected economic conditions, particularly the effects of the COVID-19 pandemic, in determining an appropriate allowance. As many of our regions began to recover from the 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. As part of the analysis under the updated estimation methodology, we noted an increase in accounts receivable significantly past due, particularly in the U.S., and we recorded an additional allowance of $ 16.7 million in the first quarter of 2022. In the subsequent three quarters of 2022, the additional allowance was reduced by $ 1.1 million as a result of collections. Due to the fact that management has excluded this amount when evaluating internal performance, we have excluded it from segment results. Fair-value estimates. We have various financial instruments included in our financial statements. Financial instruments are carried in our financial statements at either cost or fair value. We estimate fair value of assets using the following hierarchy using the highest level possible: Level 1: Quoted prices for identical assets or liabilities in active markets. Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are directly or indirectly observable, or inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. Level 3: Unobservable inputs that reflect estimates and assumptions. New Accounting Standards In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires expanded disclosures about significant segment expenses and information used to assess segment performance. For annual reporting periods, we adopted ASU 2023-07 on January 1, 2024. For interim reporting periods, this ASU was effective for us on January 1, 2025. In accordance with the new guidance, we have added disclosures about significant segment expenses in Note 3. Beginning with our first interim reporting period in 2025, we will also include interim disclosures regarding assets held by segments as well as capital expenditures and depreciation and amortization by segment. In December 2023, the FASB issued ASU 2023-09, I ncome Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands annual disclosures in an entity’s income tax rate reconciliation table and requires annual disclosures regarding cash taxes paid both in the U.S. (federal and state) and foreign jurisdictions. The amendments in this ASU are effective for annual periods beginning after December 15, 2024, although early adoption is permitted. This new guidance will result in increased disclosures in the notes to our financial statements. 69 In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE) , which requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. This ASU will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. We are currently evaluating the impact that the adoption of this standard will have on our consolidated financial statements. 70 Note 2 - Revenue from Contracts with Customers Performance Obligations We provide various services to meet the needs of our customers and we group these service offerings into two broad categories: (1) cash and valuables management; and (2) digital retail solutions and ATM managed services. Cash and Valuables Management Cash and valuables management services are provided to customers throughout the world. Cash-in-transit services include the secure transportation of cash, securities and other valuables between businesses, financial institutions and central banks. Basic ATM management services include cash replenishment, treasury management and first line maintenance. Our global services business provides secure transport of high-value commodities including diamonds, jewelry, precious metals, securities, banknotes, currency, high-tech devices, electronics and pharmaceuticals. Additional global services include pick-up, packaging, customs clearance, secure vault storage and inventory management. We also offer a variety of cash management services including money processing (e.g., counting, sorting, wrapping, checking condition of bills, etc.), check imaging and other cash management services (e.g., cashier balancing, counterfeit detection, account consolidation and electronic reporting). Our vaulting services combine cash-in-transit services, cash management services, vaulting and electronic reporting technologies to help banks expand into new markets while minimizing investment in vaults and branch facilities. In addition to providing secure storage, we process deposits, provide check imaging and reconciliation services, perform currency inventory management, process ATM replenishment orders and electronically transmit banking transactions. We provide other services to some of our customers, such as guarding, commercial security and payment services. Digital Retail Solutions and ATM Managed Services DRS and AMS are technology enabled services provided to customers throughout the world. DRS includes services that leverage Brink’s tech-enabled sales and software platforms to simplify cash acceptance, enables merchants to access their cash without visiting a bank and provide customers with enhanced analytics and visibility. DRS includes our patented Brink’s Complete TM and CompuSafe® services. AMS provides comprehensive services beyond basic ATM services including cash forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, and installation services. These services allow financial institutions, retailers and independent ATM owners to outsource day-to-day operation of ATMs. For certain customers, we take ownership of ATM devices as part of our managed services offering. For performance obligations related to the services described above, we generally satisfy our obligations as each action to provide the service to the customer occurs. Because the customers simultaneously receive and consume the benefits from our services, these performance obligations are deemed to be satisfied over time. We use an output method, units of service provided, to recognize revenue because that is the best method to represent the transfer of our services to the customer at the agreed upon rate for each action. Although not as significant as our service offerings, we also sell goods to customers from time to time, such as safe devices. In those transactions, we satisfy our performance obligation at a point in time. We recognize revenue when the goods are delivered to the customer as that is the point in time that best represents when control has transferred to the customer. Our contracts with customers describe the services we can provide along with the fees for each action to provide the service. We typically send invoices to customers for all of the services we have provided within a monthly period and payments are generally due within 30 to 60 days of the invoice date. Although our customer contracts specify the fees for each action to provide service, the majority of the services stated in our contracts do not have a defined quantity over the contract term. Accordingly, the transaction price is considered variable as there is an unknown volume of services that will be rendered over the course of the contract. We recognize revenue for these services in the period in which they are provided to the customer based on the contractual rate at which we have the right to invoice the customer for each action. Some of our contracts with customers contain clauses that define the level of service that the customer will receive. The service level agreements (“SLA”) within those contracts contain specific calculations to determine whether the appropriate level of service has been met within a specific period, which is typically a month. We estimate SLA penalties and recognize the amounts as a reduction to revenue. Taxes collected from customers and remitted to governmental authorities are not included in revenues in the consolidated statements of operations. 71 Revenue Disaggregated by Reportable Segment and Type of Service (In millions) Cash and Valuables Management DRS and AMS Total Twelve months ended December 31, 2024 Reportable Segments: North America $ 1,207.0 442.7 1,649.7 Latin America 1,095.5 215.5 1,311.0 Europe 749.5 477.9 1,227.4 Rest of World 748.4 75.4 823.8 Total reportable segments $ 3,800.4 1,211.5 5,011.9 Twelve months ended December 31, 2023 Reportable Segments: North America $ 1,216.8 384.3 1,601.1 Latin America 1,149.1 183.2 1,332.3 Europe 745.2 391.6 1,136.8 Rest of World 751.6 52.8 804.4 Total reportable segments $ 3,862.7 1,011.9 4,874.6 Twelve months ended December 31, 2022 Reportable Segments: North America $ 1,207.2 376.9 1,584.1 Latin America 1,090.3 120.3 1,210.6 Europe 728.1 203.3 931.4 Rest of World 766.5 42.9 809.4 Total reportable segments $ 3,792.1 743.4 4,535.5 Certain of our services involve the leasing of assets, such as safes, to our customers along with the regular servicing of those safe devices. Revenues related to the leasing of these assets are recognized in accordance with applicable lease guidance, but are included in the above table as the amounts are a small percentage of overall revenues. Contract Balances Contract Assets Although payment terms and conditions can vary, for the majority of our customer contracts, we invoice for all of the services provided to the customer within a monthly period. For certain customer contracts, the timing of our performance may precede our right to invoice the customer for the total transaction price. For example, Brink's affiliates in certain countries, primarily in Latin America, negotiate annual price adjustments with certain customers and, once the price increases are finalized, the pricing changes are made retroactive to services provided in earlier periods. These retroactive pricing adjustments are estimated and recognized as revenue with a corresponding contract asset in the same period in which the related services are performed. As the estimate of the ultimate transaction price changes, we recognize a cumulative catch-up adjustment for the change in estimate. In our Rest of World segment, certain Brink's affiliates provide services to specific customers and, per contract, a portion of the consideration is retained by the customers until the contract is completed. The retention amounts are reported as contract assets until we have the right to bill the customer for these amounts. Certain Brink's affiliates make upfront consideration payments in order to gain customer contracts. The upfront payment amounts are reported as contract assets and are amortized as a reduction to revenues over the duration of the contracts. Contract assets expected to be collected within one year ($ 4.6 million at December 31, 2024) are included in prepaid expenses and other on the consolidated balance sheet. Amounts not expected to be billed and collected within one year ($ 17.6 million at December 31, 2024) are reported in other noncurrent assets on the consolidated balance sheet. Contract Liabilities For other customer contracts, we may obtain the right to payment or receive customer payments prior to performing the related services under the contract. When the right to customer payments or receipt of payments precedes our performance, we recognize a contract liability, which is included in accrued liabilities on the consolidated balance sheet. 72 The opening and closing balances of receivables, contract assets and contract liabilities related to contracts with customers are as follows: (In millions) Receivables Contract Assets Contract Liabilities Opening (January 1, 2024) $ 779.0 15.4 21.4 Closing (December 31, 2024) 733.5 22.2 15.0 Increase (decrease) $ ( 45.5 ) 6.8 ( 6.4 ) The amount of revenue recognized in 2024 that was included in the January 1, 2024 contract liability balance was $ 21.2 million. This revenue consists of services provided to customers who had prepaid for those services prior to the current year. Revenue recognized in the twelve months ended December 31, 2024 from performance obligations satisfied in the prior year was not significant. This revenue is a result of changes in the transaction price of our contracts with customers. Contract Costs Sales commissions directly related to obtaining new contracts with customers are capitalized when incurred and are then amortized to expense ratably over the term of the contracts. At December 31, 2024, the net capitalized costs to obtain contracts was included in other assets on the consolidated balance sheet. The capitalized amounts at December 31, 2024 were $ 12.8 million. Practical Expedients For the majority of our contracts with customers, we invoice a fixed amount for each unit of service we have provided. These contracts provide us with the right to invoice for an amount or rate that corresponds to the value we have delivered to our customers. The volume of services that will be provided to customers over the term is not known at inception of these contracts. Therefore, while the rate per unit of service is known, the transaction price itself is variable. For this reason, we recognize revenue from these contracts equal to the amount for which we have the contractual right to invoice the customers. Because we are not required to estimate variable consideration related to the transaction price in order to recognize revenue, we are also not required to estimate the variable consideration to provide certain disclosures. As a result, we have elected to use the optional exemption related to the disclosure of transaction prices, amounts allocated to remaining performance obligations and the future periods in which revenue will be recognized, sometimes referred to as backlog. We have also elected to use the practical expedient for financing components related to our contract liabilities. We do not recognize interest expense on contracts for which the period between our receipt of customer payments and our service to the customer is one year or less. 73 Note 3 - Segment Information We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. Our CODM is our President and Chief Executive Officer. Our CODM evaluates performance and allocates resources to each operating segment based on a profit or loss measure which, at the reportable segment level, excludes the following: • Corporate expenses - 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 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. As such, they have not been allocated to segment or Corporate results. Our CODM uses segment operating profit to evaluate the performance of each of our reportable segments, comparing profitability to expected results as well as to the other segments, ultimately guiding resource allocation decisions including investment, capital allocation and staffing to optimize overall company profitability. We currently serve customers in more than 100 countries, including 51 countries where we operate subsidiaries. We manage our business in the following four segments: • North America – operations in the U.S. and Canada, including the Brink’s Global Services ("BGS") line of business, • Latin America – operations in Latin American countries where we have an ownership interest, including the BGS line of business, • Europe – total operations in European countries that primarily provide services outside of the BGS line of business, and • Rest of World – operations in the Middle East, Africa and Asia. This segment also includes total operations in European countries that primarily provide BGS services and BGS activity in Latin American countries where we do not have an ownership interest. 74 Year Ended December 31, 2024 (In millions) North America Latin America Europe Rest of World Total Revenues $ 1,649.7 1,311.0 1,227.4 823.8 5,011.9 Less: Cost of revenues: Labor and fringe benefit costs (a) 624.0 572.1 544.2 236.8 Other cost of revenues segment items (b) 608.2 349.3 404.4 351.2 Total cost of revenues (a) 1,232.2 921.4 948.6 588.0 Selling, general, and administrative (a) 223.5 117.3 140.9 67.2 Segment operating profit $ 194.0 272.3 137.9 168.6 772.8 Year Ended December 31, 2023 (In millions) North America Latin America Europe Rest of World Total Revenues $ 1,601.1 1,332.3 1,136.8 804.4 4,874.6 Less: Cost of revenues: Labor and fringe benefit costs (a) 633.2 574.6 511.4 238.4 Other cost of revenues segment items (b) 583.4 354.1 384.9 342.7 Total cost of revenues (a) 1,216.6 928.7 896.3 581.1 Selling, general, and administrative (a) 199.3 123.3 115.5 59.2 Segment operating profit $ 185.2 280.3 125.0 164.1 754.6 Year Ended December 31, 2022 (In millions) North America Latin America Europe Rest of World Total Revenues $ 1,584.1 1,210.6 931.4 809.4 4,535.5 Less: Cost of revenues: Labor and fringe benefit costs (a) 647.8 508.9 458.2 238.3 Other cost of revenues segment items (b) 590.0 308.5 281.9 346.8 Total cost of revenues (a) 1,237.8 817.4 740.1 585.1 Selling, general, and administrative (a) 187.2 115.5 92.9 60.4 Segment operating profit $ 159.1 277.7 98.4 163.9 699.1 (a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Selling, general and administrative expenses include insignificant amounts reported within other operating income (expense) in the consolidated statements of operations. (b) Other cost of revenues segment items for each reportable segment include primarily vehicle expenses, freight, equipment costs, building expense, and office and administrative expenses. 75 Years Ended December 31, (In millions) 2024 2023 2022 Segment operating profit $ 772.8 754.6 699.1 Reconciling Items: Corporate expenses: General, administrative and other expenses ( 167.2 ) ( 152.8 ) ( 161.5 ) Foreign currency transaction gains 23.9 15.3 10.9 Reconciliation of segment policies to GAAP (a) ( 0.1 ) ( 2.1 ) 1.8 Other items not allocated to segments (b) : Reorganization and restructuring ( 1.5 ) ( 17.6 ) ( 38.8 ) Acquisitions and dispositions ( 62.5 ) ( 70.6 ) ( 86.6 ) Argentina highly inflationary impact ( 35.0 ) ( 86.8 ) ( 41.7 ) Transformation initiatives ( 28.4 ) ( 5.5 ) — DOJ/FinCEN investigations ( 45.7 ) — — Chile antitrust matter ( 1.3 ) ( 0.5 ) ( 1.4 ) Change in allowance estimate — — ( 15.6 ) Ship loss matter — — ( 4.9 ) Non-routine auto loss matter ( 2.0 ) ( 8.0 ) — Reporting compliance — ( 0.8 ) — Operating profit $ 453.0 425.2 361.3 (a) This line item includes adjustments to bad debt expense and a Mexico profit sharing plan accrual reported by the segments to the estimated consolidated amounts required by U.S. GAAP. (b) See "Other Items not Allocated to Segments" for a description of these items. Other Items not Allocated to Segments Reorganization and restructuring Net charges incurred in relation to certain restructuring actions include primarily severance charges and asset impairment losses. The 2022 Global Restructuring Plan was designed to, among other things, enable growth, reduce costs and related infrastructure, and to mitigate the potential impact of external economic conditions in light of the COVID-19 pandemic. Other restructuring actions were primarily in response to the COVID-19 pandemic and a decision to exit a line of business in our Canada operating unit. Acquisitions and dispositions These items include non-cash amortization expense for acquisition-related intangible assets, as well as integration, transaction, restructuring and certain compensation costs. Argentina highly inflationary impact Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, Argentine peso-denominated monetary assets and liabilities are now remeasured at each balance sheet date to the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In addition, nonmonetary assets retain a higher historical basis when the currency is devalued. The higher historical basis results in incremental expense being recognized when the nonmonetary assets are consumed. 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. The transformation costs primarily include third party professional services and project management charges. These costs relate to a discrete program. DOJ/FinCEN Investigations In 2024, we recorded a charge for a probable loss in connection with U.S. Department of Justice ("DOJ") and U.S. Department of the Treasury’s (the "U.S. Treasury") Financial Crimes Enforcement Network ("FinCEN") investigations. Additionally, we have incurred third-party costs, primarily legal costs, associated with this matter. See Note 23 for details. Chile antitrust matter We have recorded charges for a contingent loss associated with an investigation initiated 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. Additionally, we have incurred third-party costs, primarily legal costs, associated with this matter. See Note 23 for details. Change in allowance estimate Represents impact of a change in our methodology to estimate our allowance for doubtful accounts in the first quarter of 2022. See Note 1 and Note 16 for further details. Ship loss matter We have excluded our share of costs for damages and losses suffered by a ship owner that was carrying cargo for Brink's. 76 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. In connection with the ensuing litigation, Brink’s recognized a charge. Additionally, we have incurred third-party costs, primarily legal costs, associated with this matter. Reporting compliance We incurred certain third-party compliance costs in 2023 to remediate a material weakness in internal controls over financial reporting. Years Ended December 31, (In millions) 2024 2023 2022 Capital Expenditures by Reportable Segment North America $ 62.6 43.8 41.4 Latin America 33.0 48.8 50.1 Europe 76.9 72.1 50.5 Rest of World 45.6 30.6 34.4 Total reportable segments 218.1 195.3 176.4 Corporate items 4.4 7.4 6.2 Total $ 222.5 202.7 182.6 Depreciation and Amortization by Reportable Segment Depreciation and amortization of property and equipment: North America $ 82.4 73.9 69.1 Latin America 53.9 53.6 49.1 Europe 57.0 54.2 39.6 Rest of World 26.2 24.4 23.6 Total reportable segments 219.5 206.1 181.4 Corporate items 3.5 5.3 8.4 Argentina highly inflationary impact 12.0 5.4 2.9 Acquisitions and dispositions — — 0.1 Reorganization and restructuring — 1.2 1.0 Depreciation and amortization of property and equipment 235.0 218.0 193.8 Amortization of intangible assets (a) 58.3 57.8 52.0 Total $ 293.3 275.8 245.8 (a) Amortization of acquisition-related intangible assets has been excluded from reportable segment amounts. December 31, (In millions) 2024 2023 Assets held by Reportable Segment North America $ 2,089.8 1,975.7 Latin America 1,171.7 1,273.1 Europe 1,894.9 1,992.7 Rest of World 1,084.9 1,031.9 Total reportable segments 6,241.3 6,273.4 Corporate items 381.8 328.4 Total $ 6,623.1 6,601.8 77 December 31, (In millions) 2024 2023 Long-Lived Assets by Significant Country (a) Non-U.S.: Mexico $ 106.5 135.9 France 113.2 104.2 Brazil 54.9 78.3 Other 377.1 376.0 Subtotal 651.7 694.4 U.S. 331.0 318.9 Total $ 982.7 1,013.3 (a) Long-lived assets include only property and equipment, net. Years Ended December 31, (In millions) 2024 2023 2022 Revenues by Significant Country (a) Outside the U.S.: Mexico $ 582.8 563.8 452.6 France 447.1 413.2 370.1 Brazil 283.2 309.8 329.9 Argentina 190.7 207.1 203.9 United Kingdom 190.7 188.7 107.0 Netherlands 170.3 149.7 124.3 Canada 123.1 118.0 124.5 Other 1,497.4 1,441.2 1,363.6 Subtotal 3,485.3 3,391.5 3,075.9 U.S. 1,526.6 1,483.1 1,459.6 Total $ 5,011.9 4,874.6 4,535.5 (a) Revenues are recorded in the country where service is initiated or performed. No single customer represents more than 10% of total revenue. December 31, (In millions) 2024 2023 Net assets outside the U.S. by Geographic Area Canada $ 46.9 52.6 Latin America (a) 750.4 782.8 Europe (a)(b) 1,061.7 809.3 Middle East, Africa and Asia ("MEAA") (a)(b) 606.5 562.4 Total $ 2,465.5 2,207.1 (a) Amounts include net assets of Corporate entities domiciled outside the U.S. (b) European countries that primarily provide BGS services from our Rest of World segment are included in the Europe geographic area. The remainder of our Rest of World segment primarily represents operations in the MEAA geographic area. 78 Note 4 - Retirement Benefits Defined-benefit Pension Plans Summary We have various defined-benefit pension plans covering eligible current and former employees. Benefits under most plans are based on salary and years of service. There are limits to the amount of benefits which can be paid to participants from a U.S. qualified pension plan. We maintain a nonqualified U.S. plan to pay benefits for those eligible current and former employees in the U.S. whose benefits exceed the regulatory limits. Pension benefits provided to eligible U.S. employees were frozen on December 31, 2005. Components of Net Periodic Pension Cost (Credit) (In millions) U.S. Plans Non-U.S. Plans Total Years Ended December 31, 2024 2023 2022 2024 2023 2022 2024 2023 2022 Service cost $ — — — $ 8.7 7.6 8.1 $ 8.7 7.6 8.1 Interest cost on projected benefit obligation 30.7 32.4 22.9 17.7 18.1 13.1 48.4 50.5 36.0 Return on assets – expected ( 46.4 ) ( 47.2 ) ( 48.7 ) ( 11.4 ) ( 11.1 ) ( 12.7 ) ( 57.8 ) ( 58.3 ) ( 61.4 ) Amortization of losses 5.2 1.6 24.2 2.6 1.8 2.0 7.8 3.4 26.2 Amortization of prior service cost — — — 0.1 — — 0.1 — — Curtailment gain — — — — — ( 0.5 ) — — ( 0.5 ) Settlement loss (a) — — — 1.1 — 3.2 1.1 — 3.2 Net periodic pension cost (credit) $ ( 10.5 ) ( 13.2 ) ( 1.6 ) $ 18.8 16.4 13.2 $ 8.3 3.2 11.6 (a) Non-U.S. Plans settlement losses relate primarily to terminated employees that participate in a Mexican severance indemnity program ("Mexico Plan") that is accounted for as a defined benefit plan. Non-U.S. Plans settlement losses in 2023 related to terminated employees that participate in the Mexico Plan were offset by a settlement gain related to our defined benefit plan in Ireland, which was terminated during 2023. Plan settlement losses in 2022 relate primarily to lump-sum payouts in Canada as well as terminated employees that participate in the Mexico Plan that is accounted for as a defined benefit plan. The components of net periodic pension cost and net periodic post-retirement cost other than the service cost component are included in interest and other nonoperating income (expense) in the consolidated statements of operations. 79 Obligations and Funded Status Changes in the projected benefit obligation (“PBO”) and plan assets for our pension plans are as follows: (In millions) U.S. Plans Non-U.S. Plans Total Years Ended December 31, 2024 2023 2024 2023 2024 2023 Benefit obligation at beginning of year $ 629.2 627.2 383.1 334.7 1,012.3 961.9 Service cost — — 8.7 7.6 8.7 7.6 Interest cost 30.7 32.4 17.7 18.1 48.4 50.5 Participant contributions — — 0.6 0.5 0.6 0.5 Plan amendments — — — 0.5 — 0.5 Plan combinations — — 2.2 0.4 2.2 0.4 Curtailments — — 0.1 ( 0.1 ) 0.1 ( 0.1 ) Settlements — — ( 0.9 ) ( 3.8 ) ( 0.9 ) ( 3.8 ) Benefits paid ( 45.0 ) ( 45.2 ) ( 22.4 ) ( 21.4 ) ( 67.4 ) ( 66.6 ) Divestitures (a) — — — ( 3.7 ) — ( 3.7 ) Actuarial (gains) losses ( 29.2 ) 14.8 ( 10.6 ) 33.9 ( 39.8 ) 48.7 Foreign currency exchange effects — — ( 30.7 ) 16.4 ( 30.7 ) 16.4 Benefit obligation at end of year $ 585.7 629.2 347.8 383.1 933.5 1,012.3 Fair value of plan assets at beginning of year $ 611.6 596.3 259.3 245.5 870.9 841.8 Return on assets – actual 20.4 59.9 2.9 20.9 23.3 80.8 Participant contributions — — 0.6 0.5 0.6 0.5 Plan combinations — — 2.2 0.4 2.2 0.4 Employer contributions 0.7 0.6 13.7 12.8 14.4 13.4 Settlements — — ( 0.9 ) ( 3.8 ) ( 0.9 ) ( 3.8 ) Benefits paid ( 45.0 ) ( 45.2 ) ( 22.4 ) ( 21.4 ) ( 67.4 ) ( 66.6 ) Divestitures (a) — — — ( 3.7 ) — ( 3.7 ) Foreign currency exchange effects — — ( 16.9 ) 8.1 ( 16.9 ) 8.1 Fair value of plan assets at end of year $ 587.7 611.6 238.5 259.3 826.2 870.9 Funded status $ 2.0 ( 17.6 ) ( 109.3 ) ( 123.8 ) ( 107.3 ) ( 141.4 ) Included in: Noncurrent asset $ 8.2 — 12.7 15.1 20.9 15.1 Current liability, included in accrued liabilities 0.6 0.7 5.1 7.3 5.7 8.0 Noncurrent liability 5.6 16.9 116.9 131.6 122.5 148.5 Net pension (asset) liability $ ( 2.0 ) 17.6 109.3 123.8 107.3 141.4 (a) During 2023, we terminated our defined-benefit pension plan in Ireland. 80 Other Changes in Plan Assets and Benefit Recognized in Other Comprehensive Income (Loss) (In millions) U.S. Plans Non-U.S. Plans Total Years Ended December 31, 2024 2023 2024 2023 2024 2023 Benefit plan net actuarial losses recognized in accumulated other comprehensive income (loss): Beginning of year $ ( 187.2 ) ( 186.7 ) ( 43.1 ) ( 18.9 ) ( 230.3 ) ( 205.6 ) Net actuarial gains (losses) arising during the year 3.2 ( 2.1 ) 2.0 ( 24.0 ) 5.2 ( 26.1 ) Reclassification adjustment for amortization of prior actuarial losses included in net income (loss) 5.2 1.6 3.7 1.8 8.9 3.4 Foreign currency exchange effects — — 4.0 ( 2.0 ) 4.0 ( 2.0 ) End of year $ ( 178.8 ) ( 187.2 ) ( 33.4 ) ( 43.1 ) ( 212.2 ) ( 230.3 ) Benefit plan prior service cost recognized in accumulated other comprehensive income (loss): Beginning of year $ — — ( 0.7 ) ( 0.1 ) ( 0.7 ) ( 0.1 ) Prior service credit (cost) from plan amendments during the year — — — ( 0.5 ) — ( 0.5 ) Reclassification adjustment for amortization of prior service cost included in net income (loss) — — 0.1 — 0.1 — Foreign currency exchange effects — — 0.1 ( 0.1 ) 0.1 ( 0.1 ) End of year $ — — ( 0.5 ) ( 0.7 ) ( 0.5 ) ( 0.7 ) U.S. Plans The net actuarial gains of $ 3.2 million in 2024 and losses of $ 2.1 million in 2023 were mainly driven by changes in the primary U.S. pension plan. The 2024 net actuarial gains arose primarily from a higher discount rate at the end of the year ($ 27 million) and census data updates ($ 2 million), which was largely offset by lower actual return on assets than expected ($ 26 million). The 2023 net actuarial losses arose primarily from a lower discount rate at the end of the year ($ 18 million), which was largely offset by higher actual return on assets than expected ($ 13 million). Non-U.S. Plans The net actuarial gains of $ 2.0 million in 2024 were primarily due to a better liability experience ($ 11 million) driven by higher discount rates at the end of the year, which was mostly offset by actual return on assets being lower than expected ($ 9 million). The net actuarial losses of $ 24.0 million in 2023 were primarily due to lower discount rates at the end of the year ($ 30 million), largely offset by actual return on assets being higher than expected ($ 10 million). Information Comparing Plan Assets to Plan Obligations Information comparing plan assets to plan obligations as of December 31, 2024 and 2023 are aggregated below. The accumulated benefit obligation (“ABO”) differs from the PBO in that the ABO is based on the benefit earned through the date noted. The PBO includes assumptions about future compensation levels for plans that have not been frozen. The total ABO for our U.S. pension plans was $ 585.7 million in 2024 and $ 629.2 million in 2023. The total ABO for our Non-U.S. pension plans was $ 317.6 million in 2024 and $ 346.6 million in 2023. Information for Pension Plans with an ABO in Excess of Plan Assets (In millions) U.S. Plans Non-U.S. Plans Total December 31, 2024 2023 2024 2023 2024 2023 Fair value of plan assets $ — 611.6 92.0 86.1 92.0 697.7 Accumulated benefit obligation 6.2 629.2 191.2 196.7 197.4 825.9 Projected benefit obligation 6.2 629.2 214.0 223.6 220.2 852.8 81 Assumptions The weighted-average assumptions used to determine the net pension cost and benefit obligations for our pension plans were as follows: U.S. Plans Non-U.S. Plans 2024 2023 2022 2024 2023 2022 Discount rate: Pension cost 5.1 % 5.4 % 2.8 % 4.9 % 5.4 % 2.8 % Benefit obligation at year end 5.6 % 5.1 % 5.4 % 5.0 % 4.9 % 5.4 % Expected return on assets – pension cost 7.00 % 7.00 % 7.00 % 4.58 % 4.59 % 3.76 % Average rate of increase in salaries (a): Pension cost N/A N/A N/A 2.0 % 1.9 % 1.6 % Benefit obligation at year end N/A N/A N/A 1.9 % 2.0 % 1.9 % (a) Salary scale assumptions are determined through historical experience and vary by age and industry. The U.S. plan benefits are frozen and will not increase due to future salary increases. Mortality Tables for our U.S. Retirement Benefits We use the Society of Actuaries base mortality tables for private sector plans, Pri-2012, and the Mercer modified MP-2021 projection scale, with a Blue Collar adjustment factor for the majority of our U.S. retirement plans and a White Collar adjustment factor for our nonqualified U.S. pension plan. Estimated Future Cash Flows Estimated Future Contributions from the Company into Plan Assets Our policy is to fund at least the minimum actuarially determined amounts required by applicable regulations. We do not expect to make contributions to our primary U.S. pension plan in 2025. We expect to contribute $ 8.7 million to our non-U.S. pension plans and $ 0.6 million to our nonqualified U.S. pension plan in 2025. Estimated Future Benefit Payments from Plan Assets to Beneficiaries Projected benefit payments of the plans in the next 10 years using assumptions in effect at December 31, 2024, are as follows: (In millions) U.S. Plans Non-U.S. Plans Total 2025 $ 48.4 19.1 67.5 2026 48.3 19.2 67.5 2027 48.0 20.2 68.2 2028 47.5 22.9 70.4 2029 46.9 24.1 71.0 2030 through 2034 223.5 139.4 362.9 82 Retirement Benefits Other than Pensions Summary We provide retirement healthcare benefits for eligible current and former U.S., Canadian, and Brazilian employees. Retirement benefits related to our former U.S. coal operation include medical benefits provided by the Pittston Coal Group Companies Employee Benefit Plan for United Mine Workers of America Represented Employees (the “UMWA plans”) as well as costs related to Black Lung obligations. Components of Net Periodic Postretirement Cost The components of net periodic postretirement cost related to retirement benefits other than pensions were as follows: (In millions) UMWA Plans Black Lung and Other Plans Total Years Ended December 31, 2024 2023 2022 2024 2023 2022 2024 2023 2022 Service cost $ — — — $ 0.1 0.3 0.1 $ 0.1 0.3 0.1 Interest cost on APBO 9.6 11.1 10.3 4.6 5.3 3.7 14.2 16.4 14.0 Return on assets – expected ( 10.2 ) ( 10.3 ) ( 13.2 ) — — — ( 10.2 ) ( 10.3 ) ( 13.2 ) Amortization of losses 1.7 5.1 10.0 4.3 4.8 7.3 6.0 9.9 17.3 Amortization of prior service credit ( 9.4 ) ( 11.0 ) ( 4.6 ) — ( 0.1 ) ( 0.3 ) ( 9.4 ) ( 11.1 ) ( 4.9 ) Net periodic postretirement cost (credit) $ ( 8.3 ) ( 5.1 ) 2.5 $ 9.0 10.3 10.8 $ 0.7 5.2 13.3 The components of net periodic pension cost and net periodic postretirement cost other than the service cost component are included in interest and other nonoperating income (expense) in the consolidated statements of operations. Obligations and Funded Status Changes in the accumulated postretirement benefit obligation (“APBO’) and plan assets related to retirement healthcare benefits are as follows: (In millions) UMWA Plans Black Lung and Other Plans Total Years Ended December 31, 2024 2023 2024 2023 2024 2023 APBO at beginning of year $ 214.0 233.9 91.3 89.2 305.3 323.1 Service cost — — 0.1 0.3 0.1 0.3 Interest cost 9.6 11.1 4.6 5.3 14.2 16.4 Plan amendments 8.8 — — — 8.8 — Benefits paid ( 20.7 ) ( 19.8 ) ( 8.3 ) ( 8.0 ) ( 29.0 ) ( 27.8 ) Actuarial (gains) losses, net ( 39.5 ) ( 11.2 ) ( 7.3 ) 3.3 ( 46.8 ) ( 7.9 ) Foreign currency exchange effects — — ( 2.6 ) 1.2 ( 2.6 ) 1.2 APBO at end of year $ 172.2 214.0 77.8 91.3 250.0 305.3 Fair value of plan assets at beginning of year $ 136.1 139.0 — — 136.1 139.0 Return on assets – actual 13.6 14.2 — — 13.6 14.2 Employer contributions — — 8.3 8.0 8.3 8.0 Net transfers to (from) plan assets 0.5 2.7 — — 0.5 2.7 Benefits paid ( 20.7 ) ( 19.8 ) ( 8.3 ) ( 8.0 ) ( 29.0 ) ( 27.8 ) Fair value of plan assets at end of year $ 129.5 136.1 — — 129.5 136.1 Funded status $ ( 42.7 ) ( 77.9 ) ( 77.8 ) ( 91.3 ) ( 120.5 ) ( 169.2 ) Included in: Current, included in accrued liabilities $ — — 9.0 9.6 9.0 9.6 Noncurrent 42.7 77.9 68.8 81.7 111.5 159.6 Retirement benefits other than pension liability $ 42.7 77.9 77.8 91.3 120.5 169.2 83 Other Changes in Plan Assets and Benefit Recognized in Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) of our retirement benefit plans other than pensions are as follows: (In millions) UMWA Plans Black Lung and Other Plans Total Years Ended December 31, 2024 2023 2024 2023 2024 2023 Benefit plan net actuarial gain (loss) recognized in accumulated other comprehensive income (loss): Beginning of year $ ( 73.7 ) ( 93.9 ) ( 44.4 ) ( 45.5 ) ( 118.1 ) ( 139.4 ) Net actuarial gains (losses) arising during the year 42.9 15.1 7.3 ( 3.3 ) 50.2 11.8 Reclassification adjustment for amortization of prior actuarial losses included in net income (loss) 1.7 5.1 4.3 4.8 6.0 9.9 Foreign currency exchange effects — — 0.2 ( 0.4 ) 0.2 ( 0.4 ) End of year $ ( 29.1 ) ( 73.7 ) ( 32.6 ) ( 44.4 ) ( 61.7 ) ( 118.1 ) Benefit plan prior service (cost) credit recognized in accumulated other comprehensive income (loss): Beginning of year $ 69.7 80.7 0.2 0.3 69.9 81.0 Prior service credit from plan amendments during the year ( 8.8 ) — — — ( 8.8 ) — Reclassification adjustment for amortization or curtailment of prior service cost included in net income (loss) ( 9.4 ) ( 11.0 ) — ( 0.1 ) ( 9.4 ) ( 11.1 ) Foreign currency exchange effects — — — — — — End of year $ 51.5 69.7 0.2 0.2 51.7 69.9 UMWA Plans The net actuarial gains of $ 42.9 million in 2024 arose primarily due to claims assumptions updates ($ 35 million), higher actual return on assets than expected ($ 3 million), and higher discount rate at the end of the year ($ 7 million), partially offset by payments higher than expected ($ 4 million). The net actuarial gains of $ 15.1 million in 2023 arose primarily due to claim assumptions updates ($ 17 million) and higher actual return on assets than expected ($ 4 million), which were partially offset by lower discount rate at the end of the year ($ 5 million). We recognized a prior service credit in 2022 associated with UMWA obligations due to a plan amendment that changed the medical plan to a group Medicare Advantage plan ($ 67 million), which reduced future expected net per capita claims costs. Black Lung and Other Plans We recognized net actuarial gains of $ 7.3 million in 2024. This was primarily due to a higher discount rate compared to the prior period ($ 4 million), and claims assumptions updates ($ 7 million), partially offset by census data updates ($ 4 million). We recognized net actuarial losses of $ 3.3 million in 2023. This was primarily due to a lower discount rate compared to the prior period ($ 2 million). Assumptions See Mortality Tables for our U.S. Retirement Benefits on page 83 for a description of the mortality assumptions. The APBO for each of the plans was determined using the unit credit method and assumed rates as follows: 2024 2023 2022 Weighted-average discount rate: Postretirement cost: UMWA plans 5.1 % 5.4 % 2.8 % Black lung 5.1 % 5.4 % 2.7 % Weighted-average 5.3 % 5.6 % 2.9 % Benefit obligation at year end: UMWA plans 5.6 % 5.1 % 5.4 % Black lung 5.5 % 5.1 % 5.4 % Weighted-average 5.7 % 5.3 % 5.6 % Expected return on assets 8.00 % 8.00 % 8.00 % 84 Healthcare Cost Trend Rates For UMWA plans, the assumed healthcare cost trend rate used to compute the 2024 APBO is 6.5 % for 2025, declining to 5.0 % in 2031 and thereafter (in 2023: 6.8 % for 2024 declining to 5.0 % in 2031 and thereafter). For the black lung obligation, the assumed healthcare cost trend rate used to compute the 2024 APBO was 5.0 % (in 2023: 5.0 %). Other plans in the U.S. provide for fixed-dollar value coverage for eligible participants and, accordingly, are not adjusted for inflation. For the Canadian plan, the assumed healthcare cost trend rate used to compute the 2024 APBO is 6.5 % for 2025, declining to 5.0 % in 2031 (in 2023: 6.8 % for 2024, declining to 5.0 % in 2031). For the Brazilian plan, the assumed healthcare cost trend rate used to compute the 2024 APBO is 4.8 % (in 2023: 4.8 %). We provide healthcare benefits to our UMWA retirees who are eligible for the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Medicare Act”) subsidy reimbursement under an employer group waiver plan (“EGWP”). Under this arrangement, a government approved health insurance provider receives the Medicare Act subsidy reimbursement on our behalf and passes these savings to us. Additionally, by providing healthcare benefits under an EGWP, we are able to benefit from the mandatory 50 % discount that pharmaceutical companies must provide for Medicare Act-eligible prescription drugs. In 2022, we amended our UWMA plans by transferring the majority of our retirees from a self-insured medical plan to a fully insured group Medicare Advantage plan starting in 2023. As a result, we updated our claims assumption for the plan amendment as of December 31, 2022, which reduced our obligation by $ 66.7 million and was recognized as a prior service credit as of December 31, 2022. Cash Flows Estimated Contributions from the Company to Plan Assets Based on the funded status and assumptions at December 31, 2024, we expect the Company to contribute $ 9.0 million in cash to the plans to pay 2025 beneficiary payments for black lung and other plans. We do not expect to contribute cash to our UMWA plans in 2025 since we believe these plans have sufficient amounts held in trust to pay for beneficiary payments until 2040 based on actuarial assumptions. Our UMWA plans are not covered by ERISA or other funding laws or regulations that require these plans to meet funding ratios. Estimated Future Benefit Payments from Plan Assets to Beneficiaries Projected benefit payments of the plans in the next 10 years using assumptions in effect at December 31, 2024, are as follows: (In millions) UMWA Plans Black Lung and Other Plans Total 2025 $ 16.2 9.1 25.3 2026 16.0 8.4 24.4 2027 15.8 7.7 23.5 2028 15.7 7.0 22.7 2029 15.4 6.5 21.9 2030 through 2034 70.4 27.4 97.8 85 Retirement Plan Assets U.S. Plans December 31, 2024 December 31, 2023 (In millions, except for percentages) Fair Value Level Total Fair Value % Actual Allocation % Target Allocation Total Fair Value % Actual Allocation % Target Allocation U.S. Pension Plans Cash, cash equivalents and receivables $ 3.8 — — 3.8 — — Equity securities: U.S. large-cap (a) 1 75.2 13 14 57.6 9 13 U.S. small/mid-cap (a) 1 20.9 4 4 15.4 3 4 International (a) 1 66.7 11 12 63.7 10 14 Emerging markets (b) 1 — — — 4.5 1 1 Dynamic asset allocation (c) 1 — — — 15.6 3 3 Fixed-income securities: Long duration - mutual fund (d) 1 343.8 68 70 317.4 62 60 Long duration - Treasury strips (d) 2 55.3 58.9 Other types of investments: Core property (g) (l) 21.3 4 — 33.0 5 2 Structured credit (h) (l) 0.7 — — 41.7 7 3 Total $ 587.7 100 100 611.6 100 100 UMWA Plans Cash, cash equivalents and receivables $ — — — — — — Equity securities: U.S. large-cap (a) 1 29.3 23 24 29.3 22 24 U.S. small/mid-cap (a) 1 13.3 10 11 13.2 10 11 International (a) 1 30.7 24 26 32.1 24 26 Emerging markets (b) 1 4.8 3 4 5.1 3 4 Dynamic asset allocation (c) 1 8.6 7 7 8.9 7 7 Fixed-income securities: High yield (e) 1 2.4 2 2 2.6 2 2 Emerging markets (f) 1 4.8 4 4 5.1 4 4 Multi asset real return (i) 1 6.0 4 5 6.1 4 5 Other types of investments: Core property (g) (l) 10.6 8 5 14.7 10 5 Structured credit (h) (l) 10.0 8 5 8.3 6 5 Global private equity (j) (l) 8.2 6 7 9.6 7 7 Energy debt (k) (l) 0.8 1 — 1.1 1 — Total $ 129.5 100 100 136.1 100 100 (a) These categories include a passively managed U.S. large-cap equity mutual fund, an actively managed U.S. small/mid-cap equity and a Non-U.S. equity mutual fund that track various indices such as the S&P 500 Index, the Russell 2500 Index and the MSCI All Country World Ex-U.S. Index. (b) This category represents an actively managed mutual fund that invests primarily in equity securities of emerging market issuers. Emerging market countries are those countries that are characterized as developing or emerging by any of the World Bank, the United Nations, the International Finance Corporation, or the European Bank for Reconstruction and Development or included in an emerging markets index by a recognized index provider. (c) This category represents an actively managed mutual fund that seeks to generate, over time, a total return in excess of the broad U.S. equity market by selecting investments from among a broad range of asset classes based upon the manager's expectations of risk and return. The fund’s allocations among asset classes may be adjusted over short periods and can vary from multiple to a single asset class. (d) This category represents actively managed mutual funds that seek to duplicate the risk and return characteristics of an intermediate to a long-term fixed-income security portfolio with an approximate duration of 10 to 15 years and longer. This is achieved by using an intermediate duration credit bond fund and a long duration credit bond mutual fund. This category also includes Treasury future contracts and zero-coupon securities created by the U.S. Treasury. (e) This category represents an actively managed mutual fund that invests primarily in fixed-income securities rated below investment grade, including corporate bonds and debentures, convertible and preferred securities and zero-coupon obligations. The fund’s average weighted maturity may vary and will generally not exceed ten years . (f) This category represents an actively managed mutual fund that invests primarily in U.S. dollar-denominated debt securities of government, government-related and corporate issuers in emerging market countries, as well as entities organized to restructure the outstanding debt of such issuers. (g) This category represents an actively managed real estate fund of funds that seeks both current income and long-term capital appreciation through investing in underlying funds that acquire, manage, and dispose of commercial real estate properties. These properties are high-quality, low-leveraged, income-generating office, industrial, retail, and multi-family properties, generally fully-leased to creditworthy companies and governmental entities. (h) This category invests primarily in a diversified portfolio comprised primarily of collateralized loan obligations and other structured credit investments backed primarily by bank loans. (i) This category represents an actively managed mutual fund that invests primarily in fixed income and equity securities and commodity linked instruments. The category seeks total returns that exceed the rate of inflation over a full market cycle regardless of market conditions. (j) This category will offer exposure to a diversified pool of global private assets fund investments. Further, the category will seek to shorten the duration of the typical private assets fund of funds through a dedicated focus on secondary strategies (i.e. funds whose investment strategy is to purchase interests in other private market investments/funds as a way to provide the original investors liquidity prior to the end of those investments’/funds’ contracted end date), income-producing investment strategies (e.g. debt, real estate, and to a lesser extent, real assets), and underlying funds whose stated life is five to seven years , as opposed to the more typical 10 -year life of private assets funds. (k) This category invests in credit securities of commodity oriented companies affected by the dislocation in the commodity markets with the investment objective of producing an equity like return with less downside risk than equity or commodity investments. (l) In accordance with ASC Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. Assets of our U.S. plans are invested with an objective of maximizing the total return, taking into consideration the liabilities of the plan, and minimizing the risks that could create the need for excessive contributions. Plan assets are invested primarily using actively managed 86 accounts with asset allocation targets listed in the tables above. Our policy does not permit the purchase of Brink’s common stock if immediately after any such purchase the aggregate fair market value of the plan assets invested in Brink’s common stock exceeds 10% of the aggregate fair market value of the assets of the plan, except as permitted by an exemption under ERISA. The plans rebalance their assets on a quarterly basis if actual allocations of assets are outside predetermined ranges. Among other factors, the performance of asset groups and investment managers will affect the long-term rate of return. In 2018, the UMWA plans re-locked their energy debt investment for another three years , which expired in 2022. We did not re-lock the energy debt investment as the fund intends to be fully liquidated by 2026. The global private equity investment cannot be redeemed due to the nature of the underlying investments. As the global private equity investment matures and becomes fully invested, liquidating distributions will be provided back to investors. We expect to receive liquidating distributions over the stated life of the underlying investments. We have $ 4 million in unfunded commitments related to the global private equity investment. Most of the investments of our U.S. retirement plans can be redeemed daily. The structured credit investments can be redeemed quarterly with 65 days’ notice. The core property fund investment can be redeemed quarterly with 105 days’ notice. We believe all plans have sufficient liquidity to meet the needs of the plans' beneficiaries in all market scenarios. Non-U.S. Plans December 31, 2024 December 31, 2023 (In millions, except for percentages) Total Fair Value % Actual Allocation % Target Allocation Total Fair Value % Actual Allocation % Target Allocation Non-U.S. Pension Plans Cash and cash equivalents $ 0.5 — — 0.9 — — Equity securities: U.S. equity funds (a) 7.3 7.4 Canadian equity funds (a) 1.8 1.6 European equity funds (a) 0.6 1.4 Other global equity funds (a) 8.1 9.6 Total equity securities 17.8 7 9 20.0 8 10 Fixed-income securities: Canadian fixed-income securities (b) 49.7 55.4 European fixed-income funds (c) 13.4 11.7 High-yield (d) 0.3 0.7 Emerging markets (e) 0.3 0.8 Long-duration (f) 57.5 61.4 Total fixed-income securities 121.2 51 49 130.0 50 49 Other types of investments: Guaranteed contract value (g) 77.9 33 35 82.6 32 34 Property funds (h) 6.2 9 7 11.1 10 7 Global infrastructure fund (i) 7.5 7.5 Other 7.4 7.2 Total other types of investments 99.0 108.4 Total $ 238.5 100 100 259.3 100 100 (a) These categories are comprised of equity index actively and passively managed funds that track various indices such as S&P 500 Composite Total Return Index, Russell 2500 Index, MSCI World Index, S&P/TSX Composite Index and others. Some of these funds use a dynamic asset allocation investment strategy seeking to generate total return over time by selecting investments from among a broad range of asset classes, investing primarily through the use of derivatives. (b) This category seeks to duplicate the risk and return characteristics of an intermediate to a long-term fixed-income security portfolio with an approximate duration of 10 to15 years and longer. This is achieved by using a mix of actively managed fixed income mutual funds, which invest in bonds issued by Canadian issuers, as well as Canadian-dollar denominated zero-coupon securities issued by the Canadian Federal and Provincial governments, and agencies thereof. (c) This category is primarily designed to generate income and exhibit volatility similar to that of the Sterling denominated bond market. This category primarily invests in investment grade or better securities. (d) This category consists of global high-yield bonds. This category invests in lower rated and unrated fixed income, floating rate and other debt securities issued by European and American companies. (e) This category consists of a diversified portfolio of debt securities issued by governments, financial institutions, companies or other entities domiciled in emerging market countries. (f) This category is designed to achieve a return consistent with holding longer term debt instruments. This category invests in interest rate and inflation derivatives, government-issued bonds, real-return bonds, and futures contracts. (g) This represents the guaranteed contract value of insurance contracts in the Netherlands pension plan. (h) This category offers exposure to limited partnerships invested in diversified real estate, participating mortgages, and property for development and resale. (i) This category is a limited partnership invested in fund of funds designed to acquire and maintain a diversified portfolio of global infrastructure investments (within targeted sub-sectors with varied maturities) that realizes a minimum of 10% annual return over a three-year rolling period. Asset allocation strategies for our non-U.S. plans are designed to accumulate a diversified portfolio among markets and asset classes in order to reduce market risk and increase the likelihood that pension assets are available to pay benefits as they are due. Assets of non-U.S. pension plans are invested primarily using actively managed accounts. The weighted-average asset allocation targets are listed in the table above, and 87 reflect limitations on types of investments held and allocations among assets classes, as required by local regulation or market practice of the country where the assets are invested. Most of the investments of our non-U.S. retirement plans can be redeemed at least monthly, except for a portion of “Other” in the above table, which can be redeemed quarterly. Non-U.S. Plans - Fair Value Measurements (In millions) December 31, 2024 December 31, 2023 Quoted prices in active markets for identical assets (Level 1) $ 89.6 95.2 Significant other observable inputs (Level 2) 43.4 49.3 Guaranteed contract value (Level 3) (a) 77.9 82.6 Other insurance contract value (Level 3) (b) 3.0 3.0 Net asset value per share practical expedient (c) 24.6 29.2 Total fair value $ 238.5 259.3 (a) In 2020, we acquired operations in the Netherlands as part of the U.K.-based G4S plc ("G4S") acquisition. As a result, we acquired insurance contract assets related to the Netherlands pension plan. These investments are valued at the highest value available at year end, either the reported cash surrender value of the contract or the vested benefit obligation ("VBO"). The VBO for a defined benefit pension plan is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee's expected date of separation or retirement. Both the cash surrender value and the VBO are determined based on unobservable inputs, which are contractually or actuarially determined, regarding returns, fees, the present value of the future cash flows of the contract and benefit obligations. The contract is classified as a Level 3 investment. (b) In 2021, our Belgium plans invested in a traditional group insurance policy, where assets are invested in the insurers' main fund with a minimum guaranteed rate. The contracts are valued based on the weighted average return of each individual insured contract. The contract value is determined based on unobservable inputs. The contract is classified as a Level 3 investment. (c) In accordance with ASC Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets. Savings Plans We sponsor various defined contribution plans to help eligible employees provide for retirement. We record expense for amounts that we contribute on behalf of employees, usually in the form of matching contributions. We matched the first 2 % of employees' eligible contributions to our U.S. 401(k) plan. Our matching contribution expense is as follows: (In millions) Years Ended December 31, 2024 2023 2022 U.S. 401(K) $ 9.9 9.9 7.6 Other plans 13.3 10.7 11.5 Total $ 23.2 20.6 19.1 88 Note 5 - Income Taxes Years Ended December 31, (In millions) 2024 2023 2022 Income (loss) from continuing operations before income taxes U.S. $ ( 39.3 ) 1.8 ( 44.3 ) Foreign 305.6 234.0 270.5 Income from continuing operations before income taxes $ 266.3 235.8 226.2 Provision (benefit) for income taxes from continuing operations Current tax expense (benefit) U.S. federal $ 1.0 2.7 2.8 State 3.4 4.0 1.6 Foreign 106.3 109.8 99.3 Current tax expense 110.7 116.5 103.7 Deferred tax expense (benefit) U.S. federal $ ( 25.0 ) 30.4 ( 59.3 ) State 1.4 ( 4.0 ) ( 0.1 ) Foreign 5.6 ( 3.7 ) ( 2.9 ) Deferred tax expense (benefit) ( 18.0 ) 22.7 ( 62.3 ) Provision for income taxes of continuing operations $ 92.7 139.2 41.4 Years Ended December 31, (In millions) 2024 2023 2022 Comprehensive provision (benefit) for income taxes allocable to Continuing operations $ 92.7 139.2 41.4 Discontinued operations 0.4 0.5 ( 0.9 ) Other comprehensive income (loss) 12.0 ( 4.5 ) 55.9 Comprehensive provision for income taxes $ 105.1 135.2 96.4 Rate Reconciliation The following table reconciles the difference between the actual tax rate on continuing operations and the statutory U.S. federal income tax rate of 21% for 2024, 2023 and 2022. Years Ended December 31, (In percentages) 2024 2023 2022 U.S. federal tax rate 21.0 % 21.0 % 21.0 % Increases (reductions) in taxes due to: Foreign rate differential 7.5 4.7 7.5 Taxes on cross border income, net of credits 2.9 7.9 6.9 Adjustments to valuation allowances ( 2.8 ) 18.5 ( 21.1 ) Foreign income taxes ( 1.0 ) 6.0 ( 0.7 ) French business tax 0.3 0.4 0.8 State income taxes, net 2.0 0.6 0.7 Share-based compensation 1.3 1.8 1.3 Acquisition costs — 0.2 — Nondeductible fines and penalties 3.8 — — Other (a) ( 0.2 ) ( 2.1 ) 1.9 Actual income tax rate on continuing operations 34.8 % 59.0 % 18.3 % (a) No individual item is above a 5% threshold. 89 Components of Deferred Tax Assets and Liabilities December 31, (In millions) 2024 2023 Deferred tax assets Pension liabilities $ 26.9 41.0 Retirement benefits other than pensions 10.8 19.7 Lease liabilities 99.5 88.2 Workers’ compensation and other claims 26.3 27.1 Property and equipment, net 42.3 44.3 Other assets and liabilities 117.2 136.4 Net operating loss carryforwards 54.4 57.2 Interest limitations and other tax carryforwards (a) 80.2 48.8 Foreign tax and other tax credits (b) 61.1 61.8 Subtotal 518.7 524.5 Valuation allowances ( 118.1 ) ( 128.0 ) Total deferred tax assets 400.6 396.5 Deferred tax liabilities Right-of-use assets, net 93.0 78.8 Goodwill and other intangibles 101.1 110.8 Other assets and miscellaneous 30.1 31.6 Deferred tax liabilities 224.2 221.2 Net deferred tax asset $ 176.4 175.3 Included in: Noncurrent assets $ 239.2 231.8 Noncurrent liabilities ( 62.8 ) ( 56.5 ) Net deferred tax asset $ 176.4 175.3 (a) U.S. interest limitation carryforward of $ 54.0 million has an unlimited carryforward and is not subject to a valuation allowance. In addition, foreign interest limitation and other tax carryforwards of $ 26.2 million have an unlimited carryforward and are subject to a full valuation allowance. (b) U.S. foreign tax credits of $ 60.4 million expire in various years between 2025 and 2033 and other remaining credits of $ 0.5 million have various expiration periods. The U.S. foreign tax credits and other credits have a valuation allowance of $ 37.0 million. Valuation Allowances Valuation allowances relate to deferred tax assets for certain federal credit carryforwards, certain state and non-U.S. jurisdictions. Based on our analysis of positive and negative evidence including historical and expected future taxable earnings, and a consideration of available tax-planning strategies, we believe it is more-likely-than-not that we will realize the benefit of the existing deferred tax assets, net of valuation allowances, at December 31, 2024. Years Ended December 31, (In millions) 2024 2023 2022 Valuation allowances: Beginning of year $ 128.0 77.3 141.5 Expiring tax credits ( 0.2 ) ( 0.1 ) ( 0.2 ) Acquisitions and dispositions ( 0.1 ) ( 0.9 ) — Changes in judgment about deferred tax assets (a) 1.3 32.5 ( 46.1 ) Other changes in deferred tax assets, charged to: Income from continuing operations ( 8.6 ) 11.3 ( 1.4 ) Other comprehensive income (loss) 1.7 6.9 ( 13.9 ) Foreign currency exchange effects ( 4.0 ) 1.0 ( 2.6 ) End of year $ 118.1 128.0 77.3 (a) Changes in judgment about valuation allowances are based on a recognition threshold of “more-likely-than-not” of realizing beginning-of-year balances of deferred tax assets. Amounts are recognized in income from continuing operations. The 2022 change in judgment includes the impact of the U.S. final foreign tax credit regulations. We determined a significant amount of the post-2021 foreign withholding taxes would have been ineligible for U.S. foreign income tax credit treatment and therefore our U.S. operations will no longer annually be generating new foreign tax credits in excess of its annual foreign tax credit utilization limit. As a result, we expected to be able to utilize a substantial amount of our foreign tax credit and general business tax credit carryforwards to offset future tax prior to their expiration. The 2023 change in judgment includes the impact of Internal Revenue Notices which provide relief for foreign taxes paid in any taxable year beginning on or after December 28, 2021, and ending before the date that a notice or other guidance withdrawing or modifying the temporary relief is issued (or any later date specified in such notice or other guidance). We determined a significant amount of the post-2021 foreign withholding taxes will now be eligible for U.S. foreign income tax credit treatment and therefore our U.S. operations will annually be generating new foreign tax credits which should be creditable in the year generated. As a result, we no longer expect to be able to utilize a substantial amount of our foreign tax credit carryforwards to offset the future tax prior to their expiration. 90 Net Operating Losses The gross amount of the net operating loss carryforwards as of December 31, 2024, was $ 398.0 million. The tax benefit of net operating loss carryforwards, before valuation allowances, as of December 31, 2024, was $ 54.4 million, and expires as follows: (In millions) Federal State Foreign Total Years of expiration 2025-2029 $ — — 2.1 2.1 2029-2033 — 0.6 1.2 1.8 2034 and thereafter — 10.7 5.7 16.4 Unlimited — 1.4 32.7 34.1 $ — 12.7 41.7 54.4 Uncertain Tax Positions A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31, (In millions) 2024 2023 2022 Uncertain tax positions: Beginning of year $ 23.5 23.5 28.9 Increases related to prior-year tax positions — 2.1 1.2 Decreases related to prior-year tax positions ( 1.3 ) ( 2.7 ) ( 2.9 ) Increases related to current-year tax positions 2.0 2.4 2.3 Increases related to acquisitions 0.8 — 0.3 Settlements ( 0.1 ) — ( 2.4 ) Effect of the expiration of statutes of limitation ( 2.5 ) ( 2.5 ) ( 1.9 ) Foreign currency exchange effects ( 0.8 ) 0.7 ( 2.0 ) End of year $ 21.6 23.5 23.5 Included in the balance of unrecognized tax benefits at December 31, 2024, are potential benefits of approximately $ 18.2 million that, if recognized, will reduce the effective tax rate on income from continuing operations. We recognize accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. We reverse interest and penalty accruals when a statute of limitation lapses or when we otherwise conclude the amounts should not be accrued. The impact of interest and penalties on the 2024, 2023 and 2022 tax provisions was not significant. We had accrued interest and penalties of $ 5.3 million at December 31, 2024, and $ 6.5 million at December 31, 2023. We file income tax returns in the U.S. federal and various state and foreign jurisdictions. As of December 31, 2024, we are subject to U.S. Federal income tax examination by tax authorities for the taxable year ending December 31, 2019, but with few exceptions, we are no longer subject to any state and local, or non-U.S. income tax examinations by tax authorities for years before 2019. Additionally, due to statute of limitations expirations and audit settlements, it is reasonably possible that approximately $ 5.7 million of currently remaining unrecognized tax positions may be recognized by the end of 2025. 91 Note 6 - Property and Equipment The following table presents our property and equipment that is classified as held and used: December 31, (In millions) 2024 2023 Land $ 47.6 54.3 Buildings 228.0 241.0 Leasehold improvements 284.8 291.2 Vehicles 777.9 805.0 Capitalized software (a) 285.5 269.1 DRS devices leased to customers 282.8 278.6 Other machinery and equipment 709.3 694.2 2,615.9 2,633.4 Accumulated depreciation and amortization ( 1,633.2 ) ( 1,620.1 ) Property and equipment, net $ 982.7 1,013.3 (a) Amortization of capitalized software costs included in continuing operations was $ 19.3 million in 2024, $ 15.5 million in 2023 and $ 16.1 million in 2022. 92 Note 7 - Acquisitions and Dispositions We account for business combinations using the acquisition method. Under the acquisition method of accounting, assets acquired and liabilities assumed from these operations are recorded at fair value on the date of acquisition. The consolidated statements of operations include the results of operations for each acquired entity from the date of acquisition. In 2024, we acquired three business operations in the North America, Latin America and Europe segments. The aggregate purchase consideration for these three acquisitions was approximately $ 27 million. In 2022, we acquired United Kingdom-based business operations that manage ATMs (see "NoteMachine Limited Acquisition" section below) and a smaller business acquisition in the North America segment. The aggregate purchase consideration for these two acquisitions was approximately $ 209 million. NoteMachine Limited Acquisition On October 3, 2022 , we acquired 100 % of the capital stock of NoteMachine Limited and Testlink Services Limited. At the acquisition date, these two entities directly owned 100% of the ownership interests in three additional entities (collectively, the five entities are referred to as "NoteMachine"). We acquired the NoteMachine businesses for approximately $ 194 million. NoteMachine is based in the United Kingdom and manages a portfolio of ATMs. NoteMachine generated approximately $ 150 million in revenues in the twelve month period prior to the acquisition. We estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition. The determination of estimated fair value required management to make significant estimates and assumptions. We finalized our purchase price accounting for NoteMachine in the third quarter of 2023. (In millions) Estimated Fair Value at Acquisition Date Fair value of purchase consideration Purchase consideration, excluding contingent consideration $ 179.4 Contingent consideration at acquisition-date fair value (a) 14.8 Fair value of purchase consideration $ 194.2 Fair value of net assets acquired Cash $ 6.8 Restricted cash 12.1 Accounts receivable 27.3 Other current assets 14.5 Property and equipment, net 38.2 Intangible assets (b) 84.2 Goodwill (c) 64.2 Other noncurrent assets 11.1 Current liabilities ( 37.0 ) Other noncurrent liabilities ( 27.2 ) Fair value of net assets acquired $ 194.2 (a) The contingent consideration has three components. The largest component was based on post-acquisition collections of ATM tax rate rebates from municipal governments in the U.K. The consideration was estimated at $ 10.5 million at the acquisition date. Through December 31, 2023, substantially all amounts were paid to the seller for this component. A smaller component was based on post-acquisition increases in the ATM cash withdrawal interchange fees through June 30, 2023. The consideration was estimated at $ 4.3 million at the acquisition date. The post-acquisition fee increases did not occur and the liability was derecognized in the second quarter of 2023 resulting in a $ 4.8 million gain classified as other operating income (expense) in the consolidated statements of operations. (b) Intangible assets are composed of customer relationships ($ 47 million fair value and 13 year amortization period), developed technology ($ 27 million fair value and 12 year amortization period) and a trade name ($ 10 million fair value and 5 year amortization period). (c) Consists of intangible assets that do not qualify for separate recognition, combined with synergies expected from integrating NoteMachine's operations with our existing Brink's operations. Goodwill of $ 63 million has been assigned to the Europe reporting unit and goodwill of $ 1 million has been assigned to the North America reporting unit. We do not expect goodwill in these reporting units to be deductible for tax purposes. 93 Note 8 - Goodwill and Other Intangible Assets Goodwill Based on our management structure, we have four reporting units, which are equal to our operating segments: • North America • Latin America • Europe • Rest of World We performed a goodwill impairment test on these reporting units as of October 1, 2024 and elected to forego the optional qualitative assessment and performed a quantitative goodwill impairment assessment instead. As a result of the evaluation, we concluded that goodwill was not impaired, and the fair value of each reporting unit exceeded its carrying value for all reporting units. We completed these goodwill impairment tests, as well as the tests in the previous two years, with no impairment charges required. The changes in the carrying amount of goodwill by operating segment for the years ended December 31, 2024 and 2023 are as follows: December 31, 2024 (In millions) Beginning Balance Acquisitions/ Dispositions Currency Ending Balance Goodwill: North America $ 477.7 9.4 ( 0.6 ) 486.5 Latin America 230.8 3.3 ( 25.6 ) 208.5 Europe 364.9 2.0 ( 18.8 ) 348.1 Rest of World 400.4 — ( 8.6 ) 391.8 Total Goodwill $ 1,473.8 14.7 ( 53.6 ) 1,434.9 December 31, 2023 (In millions) Beginning Balance Acquisitions/ Dispositions (a) Currency Ending Balance Goodwill: North America $ 477.5 — 0.2 477.7 Latin America 220.3 — 10.5 230.8 Europe 351.1 1.9 11.9 364.9 Rest of World 402.0 ( 0.5 ) ( 1.1 ) 400.4 Total Goodwill $ 1,450.9 1.4 21.5 1,473.8 (a) Includes adjustments related to the finalization of valuations in prior year acquisitions ($ 1.9 million increase in Europe). Intangible Assets The following table summarizes our other intangible assets by category: December 31, 2024 December 31, 2023 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-average amortization period Customer relationships $ 627.7 ( 271.2 ) 356.5 $ 648.0 ( 238.9 ) 409.1 8.4 Indefinite-lived trade names 7.4 — 7.4 9.1 — 9.1 — Finite-lived trade names 39.7 ( 27.7 ) 12.0 40.3 ( 22.5 ) 17.8 2.2 Developed technology 64.8 ( 18.4 ) 46.4 65.3 ( 13.0 ) 52.3 7.7 Other 4.0 ( 4.0 ) — 4.3 ( 4.3 ) — — Total $ 743.6 ( 321.3 ) 422.3 $ 767.0 ( 278.7 ) 488.3 94 Total amortization expense for our finite-lived intangible assets was $ 58.3 million in 2024 and $ 57.8 million in 2023. Our estimated aggregate amortization expense for finite-lived intangibles recorded at December 31, 2024, for the next five years is as follows: (In millions) 2025 2026 2027 2028 2029 Amortization expense $ 53.3 51.0 48.1 45.1 44.8 95 Note 9 - Prepaid Expenses and Other December 31, (In millions) 2024 2023 Prepaid expenses $ 164.4 177.0 Assets held for sale 34.9 43.0 Derivative instruments 24.7 28.5 Sales-type lease inventory 24.3 18.8 Income tax receivable 16.9 17.3 Other 48.8 41.1 Prepaid expenses and other $ 314.0 325.7 Note 10 - Other Assets December 31, (In millions) 2024 2023 Sale-type lease receivables $ 97.4 82.3 Deposits 27.9 30.4 Loans held for investment (see Note 20) 16.4 25.2 Marketable securities 31.3 16.9 Prepaid pension assets 20.9 15.1 Contract assets 17.6 9.0 Other 89.7 89.7 Other assets $ 301.2 268.6 96 Note 11 - Accumulated Other Comprehensive Income (Loss) The following tables provide the components of other comprehensive income (loss), including the amounts reclassified from accumulated other comprehensive income (loss) into earnings: Amounts Arising During the Current Period Amounts Reclassified to Net Income (Loss) (In millions) Pretax Income Tax Pretax Income Tax Total Other Comprehensive Income (Loss) 2024 Amounts attributable to Brink's: Benefit plan adjustments $ 50.5 ( 10.8 ) 5.6 ( 3.5 ) 41.8 Foreign currency translation adjustments ( 178.8 ) ( 6.2 ) ( 4.6 ) 1.1 ( 188.5 ) Gains (losses) on available-for-sale securities ( 2.1 ) 0.8 ( 4.6 ) 4.4 ( 1.5 ) Gains (losses) on cash flow hedges 15.6 ( 2.2 ) ( 17.7 ) 4.4 0.1 ( 114.8 ) ( 18.4 ) ( 21.3 ) 6.4 ( 148.1 ) Amounts attributable to noncontrolling interests: Benefit plan adjustments 0.1 — ( 0.3 ) — ( 0.2 ) Foreign currency translation adjustments ( 0.3 ) — — — ( 0.3 ) ( 0.2 ) — ( 0.3 ) — ( 0.5 ) Total Benefit plan adjustments (a) 50.6 ( 10.8 ) 5.3 ( 3.5 ) 41.6 Foreign currency translation adjustments (b) ( 179.1 ) ( 6.2 ) ( 4.6 ) 1.1 ( 188.8 ) Gains (losses) on available-for-sale securities (c) ( 2.1 ) 0.8 ( 4.6 ) 4.4 ( 1.5 ) Gains (losses) on cash flow hedges (d) 15.6 ( 2.2 ) ( 17.7 ) 4.4 0.1 $ ( 115.0 ) ( 18.4 ) ( 21.6 ) 6.4 ( 148.6 ) 2023 Amounts attributable to Brink's: Benefit plan adjustments $ ( 17.4 ) 4.3 2.2 ( 0.6 ) ( 11.5 ) Foreign currency translation adjustments 65.6 4.0 ( 5.2 ) 1.2 65.6 Gains (losses) on available-for-sale securities ( 0.8 ) ( 3.7 ) 5.0 ( 1.7 ) ( 1.2 ) Gains (losses) on cash flow hedges 1.9 ( 0.8 ) ( 11.3 ) 1.8 ( 8.4 ) 49.3 3.8 ( 9.3 ) 0.7 44.5 Amounts attributable to noncontrolling interests: Benefit plan adjustments — — ( 0.1 ) — ( 0.1 ) Foreign currency translation adjustments ( 2.2 ) — — — ( 2.2 ) ( 2.2 ) — ( 0.1 ) — ( 2.3 ) Total Benefit plan adjustments (a) ( 17.4 ) 4.3 2.1 ( 0.6 ) ( 11.6 ) Foreign currency translation adjustments (b) 63.4 4.0 ( 5.2 ) 1.2 63.4 Gains (losses) on available-for-sale securities (c) ( 0.8 ) ( 3.7 ) 5.0 ( 1.7 ) ( 1.2 ) Gains (losses) on cash flow hedges (d) 1.9 ( 0.8 ) ( 11.3 ) 1.8 ( 8.4 ) $ 47.1 3.8 ( 9.4 ) 0.7 42.2 See page 99 for footnote explanations. 97 Amounts Arising During the Current Period Amounts Reclassified to Net Income (Loss) Pretax Income Tax Pretax Income Tax Total Other Comprehensive Income (Loss) 2022 Amounts attributable to Brink's: Benefit plan adjustments $ 197.3 ( 45.4 ) 41.5 ( 10.1 ) 183.3 Foreign currency translation adjustments ( 6.5 ) 2.7 ( 5.8 ) 1.4 ( 8.2 ) Gains (losses) on available-for-sale securities ( 1.2 ) 0.5 0.3 ( 0.1 ) ( 0.5 ) Gains (losses) on cash flow hedges 25.2 ( 0.8 ) 12.4 ( 4.1 ) 32.7 214.8 ( 43.0 ) 48.4 ( 12.9 ) 207.3 Amounts attributable to noncontrolling interests: Benefit plan adjustments 0.4 — — — 0.4 Foreign currency translation adjustments ( 6.7 ) — — — ( 6.7 ) ( 6.3 ) — — — ( 6.3 ) Total Benefit plan adjustments (a) 197.7 ( 45.4 ) 41.5 ( 10.1 ) 183.7 Foreign currency translation adjustments (b) ( 13.2 ) 2.7 ( 5.8 ) 1.4 ( 14.9 ) Gains (losses) on available-for-sale securities (c) ( 1.2 ) 0.5 0.3 ( 0.1 ) ( 0.5 ) Gains (losses) on cash flow hedges (d) 25.2 ( 0.8 ) 12.4 ( 4.1 ) 32.7 $ 208.5 ( 43.0 ) 48.4 ( 12.9 ) 201.0 (a) The amortization of actuarial losses and prior service cost is part of total net periodic retirement benefit cost when reclassified to net income (loss). Net periodic retirement benefit cost also includes service cost, interest cost, expected returns on assets, and settlement costs. Total service cost is allocated between cost of revenues and selling, general and administrative expenses on a plan-by-plan basis and the remaining net periodic retirement benefit cost items are allocated to interest and other nonoperating income (expense): December 31, (In millions) 2024 2023 2022 Total net periodic retirement benefit cost included in: Cost of revenues $ 6.8 5.9 6.3 Selling, general and administrative expenses 2.1 2.0 1.9 Interest and other nonoperating income (expense) 0.1 0.5 16.7 (b) 2024 foreign currency translation adjustment amounts reflect primarily the devaluation of the Mexican peso, the Brazilian real, the Canadian dollar, the Colombian peso, the Chilean peso, and the euro. 2023 foreign currency translation adjustment amounts reflect primarily the appreciation of the Mexican peso, the Brazilian real, the British pound, and the euro. 2022 foreign currency translation adjustment amounts reflect primarily the devaluation of the British pound and the Chilean peso, partially offset by appreciation of the Mexican peso and the Brazilian real. (c) Unrealized gains and losses on available-for-sale debt securities are initially recognized in accumulated other comprehensive income (loss). When sold, gains and losses are then realized and reclassified to the consolidated statement of operations in the same period. Pretax amounts are classified in the consolidated statements of operations as interest and other income (expense). We realized a $ 4.6 million gain in 2024, a $ 5.0 million loss in 2023, and a $ 0.3 million loss in 2022 on sales of available-for-sale debt securities. (d) Pretax gains and losses on cash flow hedges are classified in the consolidated statements of operations as • other operating income (expense) ( no gain or loss in 2024, $ 7.8 million loss in 2023 and $ 8.9 million loss in 2022.) • interest expense ($ 17.7 million reduction to expense in 2024 and $ 19.1 million in 2023 and $ 3.5 million of expense in 2022.) 98 The changes in accumulated other comprehensive loss attributable to Brink’s are as follows: (In millions) Benefit Plan Adjustments Foreign Currency Translation Adjustments Gains (Losses) on Available-for-Sale Securities Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2021 $ ( 474.0 ) ( 425.7 ) ( 0.1 ) ( 8.1 ) ( 907.9 ) Other comprehensive income (loss) before reclassifications 151.9 ( 3.8 ) ( 0.7 ) 24.4 171.8 Amounts reclassified from accumulated other comprehensive loss to net income (loss) 31.4 ( 4.4 ) 0.2 8.3 35.5 Other comprehensive income (loss) attributable to Brink's 183.3 ( 8.2 ) ( 0.5 ) 32.7 207.3 Acquisitions of noncontrolling interests — 0.1 — — 0.1 Balance as of December 31, 2022 ( 290.7 ) ( 433.8 ) ( 0.6 ) 24.6 ( 700.5 ) Other comprehensive income (loss) before reclassifications ( 13.1 ) 69.6 ( 4.5 ) 1.1 53.1 Amounts reclassified from accumulated other comprehensive loss to net income (loss) 1.6 ( 4.0 ) 3.3 ( 9.5 ) ( 8.6 ) Other comprehensive income (loss) attributable to Brink's ( 11.5 ) 65.6 ( 1.2 ) ( 8.4 ) 44.5 Balance as of December 31, 2023 ( 302.2 ) ( 368.2 ) ( 1.8 ) 16.2 ( 656.0 ) Other comprehensive income (loss) before reclassifications 39.7 ( 185.0 ) 3.1 13.4 ( 128.8 ) Amounts reclassified from accumulated other comprehensive loss to net income (loss) 2.1 ( 3.5 ) ( 4.6 ) ( 13.3 ) ( 19.3 ) Other comprehensive income (loss) attributable to Brink's 41.8 ( 188.5 ) ( 1.5 ) 0.1 ( 148.1 ) Balance as of December 31, 2024 $ ( 260.4 ) ( 556.7 ) ( 3.3 ) 16.3 ( 804.1 ) 99 Note 12 - Fair Value of Financial Instruments Investments in Marketable Securities We have investments in mutual funds, equity securities and available-for-sale debt securities that are carried at fair value in the financial statements and are included in other assets on the consolidated balance sheet. For these investments, fair value was based on quoted market prices, which we have categorized as a Level 1 valuation. Fixed-Rate Debt The fair value and carrying value of our material fixed-rate debt, excluding any unamortized debt issuance costs, are as follows: December 31, (In millions) 2024 2023 2025 Senior Unsecured Notes Carrying value (a) $ — 400.0 Fair value — 382.0 2027 Senior Unsecured Notes Carrying value $ 600.0 600.0 Fair value 558.7 554.6 2029 Senior Unsecured Notes Carrying value $ 400.0 — Fair value 399.0 — 2032 Senior Unsecured Notes Carrying value $ 400.0 — Fair value 397.2 — (a) The 2025 Senior Unsecured Notes were redeemed in the third quarter of 2024 (see Note 15). Pricing inputs for nonpublic debt are often not observable. The fair value estimates of our senior notes reflect unobservable estimates and assumptions, which we have categorized as a Level 3 valuation. Our fair value estimates were based on the present value of future cash flows, discounted at rates for public debt at the measurement date. The rates for public debt were additionally adjusted for a factor which represented the change in the interest spreads between the inception rates and the public debt rates at the measurement date. Forward and Swap Contracts The fair values of our forward and swap contracts are based on the present value of net future cash payments and receipts, as well as inputs related to forward interest rates and forward currency rates that are derived principally from, or corroborated by, observable market data, which we have categorized as a Level 2 valuation. Economic Hedges We have outstanding foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies. At December 31, 2024, the notional value of our outstanding foreign currency forward and swap contracts was $ 1,158 million, with average maturities of approximately one month . These 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. Cash flows related to economic hedges are reported in the consolidated statements of cash flows based on the nature of the underlying items being hedged. For the periods presented, such cash flows are reported in operating activities or investing activities. The fair value of these contracts were recognized in the consolidated balance sheet as follows: Twelve Months Ended December 31, (In millions) 2024 2023 Prepaid expenses and other $ 19.0 8.7 Accrued liabilities ( 10.1 ) ( 9.8 ) Net asset (liability) $ 8.9 ( 1.1 ) 100 Amounts under these contracts were recognized in other operating income (expense) as follows: Twelve Months Ended December 31, (In millions) 2024 2023 2022 Derivative instrument gains (losses) included in other operating income (expense) (a) $ ( 11.0 ) 21.3 42.0 (a) Derivative instrument losses in 2024 and derivative instrument gains in 2023 were driven primarily by the impacts of forward currency contracts to hedge exposure to the Mexican peso. Derivative instrument gains in 2022 were primarily attributable to the impacts of forward currency contracts to hedge exposure to the euro. Net Investment 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. We elected to use the spot method to assess effectiveness for these derivatives that are designated as net investment hedges for accounting purposes. 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 the cross currency swaps. In 2022, we terminated the cross currency swap contracts hedging a portion of our net investment in certain euro functional currency subsidiaries and received $ 67 million in cash for the fair value of the derivative assets at the settlement date. We subsequently entered into new cross currency swaps which also hedge a portion of our net investment in certain euro functional currency subsidiaries. In 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. The fair value of these contracts were recognized in the consolidated balance sheet as follows: Twelve Months Ended December 31, (In millions) 2024 2023 Euro net investment hedge (a) Prepaid expenses and other $ 5.7 5.6 Other noncurrent liabilities ( 21.7 ) ( 40.2 ) Zero cost collar Other noncurrent asset $ 3.1 0.1 Hong Kong dollar net investment hedge (b) Prepaid expenses and other $ 0.1 0.1 Net asset (liability) $ ( 12.8 ) ( 34.4 ) (a) At December 31, 2024, swaps with a total notional value of $ 215 million will terminate in May 2026 and have a weighted average maturity of 1.1 years. Swaps with a total notional value of $ 185 million will terminate in April 2031 and have a weighted average maturity of 5.3 years. (b) At December 31, 2024, the total notional value was $ 55 million with a weighted average maturity of 0.9 years. The effect of the amortization of the spot-forward difference on the net investment hedges cross currency swaps and foreign exchange forward swap contract is included as a benefit in interest expense as follows: Twelve Months Ended December 31, (In millions) 2024 2023 2022 Cross currency swaps designated as net investment hedges $ ( 4.6 ) ( 5.2 ) ( 5.8 ) 101 Cash flows related to the amortization of the off-market component of net investment hedges are reported in investing activities. Cash flows from the termination and final settlement of net investment hedges are reported in investing activities. All other cash flows from net investment hedges are reported in operating activities. Interest Rate Swaps - Cash Flow Hedges We have periodically entered into interest rate swaps to hedge cash flow risk associated with changes in variable interest rates and we have designated the interest rate swaps as cash flow hedges for accounting purposes. Accordingly, changes in the fair value of these cash flow hedges are initially recorded in the gains (losses) on cash flow hedges component of accumulated other comprehensive income (loss). We reclassify amounts from accumulated other comprehensive income (loss) into earnings in the same periods that the hedged debt affects earnings. The fair values of our interest rate swaps were recognized in the consolidated balance sheet as follows: December 31, (In millions) 2024 2023 $400 million notional - June 2027 maturity (a) Prepaid expenses and other $ — 5.4 Other noncurrent assets — 0.3 $200 million notional - June 2027 maturity (a) Prepaid expenses and other $ — 5.8 Other noncurrent assets — 6.4 $175 million notional - June 2027 maturity (a) Prepaid expenses and other $ — 1.9 Other noncurrent liabilities — ( 1.8 ) $400 million notional - January 2024 maturity Prepaid expenses and other $ — 1.1 (a) These interest rate swaps were terminated in the fourth quarter of 2024 and we received approximately $ 19 million in cash proceeds upon termination. The cash proceeds for terminating the swaps were reported as cash flows from operating activities. Amounts under these contracts were recognized in interest expense as follows: Twelve Months Ended December 31, (In millions) 2024 2023 2022 Impact to interest expense - (benefit) cost $ ( 17.7 ) ( 19.9 ) 2.2 Cash flows related to interest rate swaps are reported as operating activities. Cross Currency Swap - Cash Flow Hedge In the first quarter of 2019, we entered into a long term cross currency swap contract to hedge exposure in Brazilian real. This cross currency swap contract matured and was fully settled in the fourth quarter of 2023. The swap contract was designated as a cash flow hedge for accounting purposes and 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 that were associated with the interest rate differential between a U.S. dollar denominated intercompany loan and a Brazilian real denominated intercompany loan. 102 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) 2024 2023 2022 Derivative instrument losses included in other operating income (expense) $ — ( 7.9 ) ( 8.9 ) Offsetting transaction gains — 7.9 8.9 Derivative instrument losses included in interest expense — ( 0.8 ) ( 1.3 ) Net derivative instrument losses $ — ( 8.7 ) ( 10.2 ) Contingent Consideration In the second quarter of 2020, we acquired cash management operations in Malaysia from U.K.-based G4S Plc ("G4S") and have recorded a payable for contingent consideration. The contingent consideration will be paid when minimum dividend distributions are received by Brink's relating to cash on the balance sheets of the Malaysia subsidiaries as of the acquisition date. We used a probability-weighted approach to estimate the fair value of the contingent consideration. The fair value of the contingent consideration is the full $ 22 million that remains potentially payable as of December 31, 2024 as we believe it is unlikely that the contingent consideration payments will be reduced. Other Financial Instruments Other financial instruments include cash and cash equivalents, accounts receivable, floating rate debt, accounts payable and accrued liabilities. The financial statement carrying amounts of these items approximate the fair value. There were no transfers in or out of any of the levels of the valuation hierarchy in 2024. 103 Note 13 - Accrued Liabilities December 31, (In millions) 2024 2023 Cash supply chain deposit liability (a) $ 166.5 167.8 Payroll and other employee liabilities 151.2 151.9 Taxes, except income taxes 134.0 134.9 Cash held by cash management services operations (b) 81.3 166.2 Operating lease liabilities 78.2 79.5 Workers’ compensation and other claims 60.6 31.7 DOJ/FinCEN investigations (c) 42.0 — Accrued interest 28.2 34.5 Income taxes payable 28.0 37.8 ATM surcharge/interchange payables 28.0 27.7 Contract liability 15.0 21.4 Retirement benefits 14.7 17.6 Derivative instruments 10.1 9.8 Chile antitrust matter (d) 9.9 10.3 Other 210.4 235.8 Accrued liabilities $ 1,058.1 1,126.9 (a) In France, we offer services to certain customers requiring us to take temporary title to the cash received from the management of our customers' cash supply chains. The cash for which we have temporary title is restricted and cannot be used for any other purpose other than to service our customers who participate in this service offering. (b) Title to cash received and processed in certain of our secure cash management services operations transfers to us for a short period of time. The cash is generally credited to customers’ accounts the following day and we record a liability while the cash is in our possession. (c) See Note 23 for more information on the DOJ/FinCEN investigations matters. (d) See Note 23 for more information on the Chile antitrust matter. Note 14 - Other Long-term Liabilities December 31, (In millions) 2024 2023 Workers’ compensation and other claims $ 75.7 72.6 Asset retirement and remediation obligations 33.8 33.3 Acquisition-related obligations 23.3 22.8 Derivative instruments 21.7 42.0 Noncurrent tax liabilities 18.0 21.8 Deferred compensation 12.6 12.0 Post-employment benefits 6.5 6.4 Other 40.0 33.7 Other long-term liabilities $ 231.6 244.6 104 Note 15 - Debt December 31, (In millions) 2024 2023 Debt: Short-term borrowings Other (year end weighted average interest rate of 6.5 % in 2024 and 6.5 % in 2023) $ 149.3 151.7 Total short-term borrowings $ 149.3 151.7 Long-term debt Bank credit facilities: Term loans (year-end weighted average interest rate of 6.2 % in 2024 and 7.0 % in 2023) less unamortized issuance cost of $ 2.8 million in 2024 and $ 4.0 million in 2023 $ 1,292.2 1,343.5 Senior unsecured notes (year-end effective interest rate of 4.6 % for "2027 Senior Unsecured Notes", 6.5 % for "2029 Senior Unsecured Notes" and 6.8 % for "2032 Senior Unsecured Notes" in 2024 and 5.5 % for "2025 Senior Unsecured Notes" and 4.6 % for "2027 Senior Unsecured Notes" in 2023) less unamortized issuance cost of $ 12.2 million in 2024 and $ 5.6 million in 2023 1,387.8 994.4 Revolving Credit Facility (year-end weighted average interest rate of 6.2 % in 2024 and 6.3 % in 2023) 399.7 542.1 Other facilities (year-end weighted-average interest rate of 5.8 % in 2024 and 5.9 % in 2023) (a) 432.1 265.8 Financing leases (year-end weighted-average interest rate of 6.7 % in 2024 and 6.2 % in 2023) 235.1 233.8 Total long-term debt $ 3,746.9 3,379.6 Total Debt $ 3,896.2 3,531.3 Included in: Current liabilities $ 291.0 268.8 Noncurrent liabilities 3,605.2 3,262.5 Total debt $ 3,896.2 3,531.3 (a) Includes Other Revolving Credit Facilities of $ 359 million at December 31, 2024 and $ 226 million at December 31, 2023. Long-Term Debt Senior Secured Credit Facility In June 2022, we amended our senior secured credit facility (the “Senior Secured Credit Facility”) with Bank of America, N.A. as administrative agent. After the amendment, the Senior Secured Credit Facility consisted of a $ 1 billion revolving credit facility (the "Revolving Credit Facility") and $ 1.4 billion of term loans (the "Term Loans"). All loans under the Revolving Credit Facility and the Term Loans mature on June 23, 2027. Principal payments for the Term Loans are due quarterly in an amount equal to 0.625 % of the initial loan amount for the first eight quarterly installment payments and 1.25 % for subsequent payments with a final lump sum payment due on June 23, 2027. Interest rates for the Senior Secured Credit Facility are based on the Secured Overnight Financing Rate ("SOFR") plus a margin or an alternate base rate plus a margin. The Revolving Credit Facility allows us to borrow money or issue letters of credit (or otherwise satisfy credit needs) on a revolving basis over the term of the facility. As of December 31, 2024, $ 600 million was available under the Revolving Credit Facility. The obligations under the Senior Secured Credit Facility are secured by a first-priority lien on all or substantially all of the assets of the Company and certain of its domestic subsidiaries, including a first-priority lien on equity interests of certain of the Company’s direct and indirect subsidiaries. The Company and certain of its domestic subsidiaries also guarantee the obligations under the Senior Secured Credit Facility. The margin on both SOFR and alternate base rate borrowings under the Senior Secured Credit Facility is based on the Company’s total net debt leverage ratio. The margin on SOFR borrowings, which can range from 1.25 % to 1.75 %, was 1.50 % at December 31, 2024. The margin on alternate base rate borrowings, which can range from 0.25 % to 0.75 %, was 0.50 % as of December 31, 2024. We also pay an annual commitment fee on the unused portion of the Revolving Credit Facility based on the Company’s total net leverage ratio. The commitment fee, which can range from 0.15 % to 0.28 %, was 0.23 %as of December 31, 2024. 105 Senior Unsecured Notes In June 2024, we issued at par five-year senior unsecured notes (the "2029 Senior Unsecured Notes") in the aggregate principal amount of $ 400 million. The 2029 Senior Unsecured Notes will mature on June 15, 2029, and bear an annual interest rate of 6.5 %. The 2029 Senior Unsecured Notes are general unsecured obligations guaranteed by certain of the Company’s existing and future U.S. subsidiaries, which are also guarantors under the Senior Secured Credit Facility. In June 2024, we issued at par eight-year senior unsecured notes (the "2032 Senior Unsecured Notes") in the aggregate principal amount of $ 400 million. The 2032 Senior Unsecured Notes will mature on June 15, 2032, and bear an annual interest rate of 6.75 %. The 2032 Senior Unsecured Notes are general unsecured obligations guaranteed by certain of the Company’s existing and future U.S. subsidiaries, which are also guarantors under the Senior Secured Credit Facility. In June 2020, we issued at par five-year senior unsecured notes (the "2025 Senior Unsecured Notes") in the aggregate principal amount of $ 400 million. The 2025 Senior Unsecured Notes were set to mature on July 15, 2025 and had an annual interest rate of 5.5 %. The 2025 Senior Unsecured Notes were general unsecured obligations guaranteed by certain of the Company’s existing and future U.S. subsidiaries, which are also guarantors under the Senior Secured Credit Facility. On August 7, 2024, we issued a notice of redemption to holders to redeem all of the outstanding aggregate principal amount of the 2025 Senior Unsecured Notes in accordance with the terms of the notes and the indenture. The notes were redeemed on September 13, 2024. In October 2017, we issued at par ten-year senior unsecured notes (the "2027 Senior Unsecured Notes" and together with the 2025 Senior Unsecured Notes, 2029 Senior Unsecured Notes and 2032 Senior Unsecured Notes, the "Senior Unsecured Notes") in the aggregate principal amount of $ 600 million. The 2027 Senior Unsecured Notes will mature on October 15, 2027, bearing an annual interest rate of 4.625 %. The 2027 Senior Unsecured Notes are general unsecured obligations guaranteed by certain of the Company’s existing and future U.S. subsidiaries, which are also guarantors under the Senior Secured Credit Facility. The Senior Unsecured Notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The notes were offered in the United States only to persons reasonably believed to be qualified institutional buyers in reliance on the exception from registration set forth in Rule 144A under the Securities Act and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. The aggregate proceeds from the Senior Secured Credit Facility and the 2027 Senior Unsecured Notes were used in part to repay certain prior indebtedness and certain fees and expenses related to the closing of certain transactions. Borrowings were used for working capital needs, capital expenditures, acquisitions and other general corporate purposes. The aggregate proceeds from the 2029 Senior Unsecured Notes and 2032 Senior Unsecured Notes were used to redeem the $ 400 million outstanding principal amount of the 2025 Senior Unsecured Notes prior to maturity and to repay a portion of the outstanding indebtedness under our Revolving Credit Facility. Before applying a portion of the net proceeds from this offering to redeem or repurchase the 2025 Senior Unsecured Notes as described above, we used such portion of the net proceeds for general corporate purposes and to temporarily repay additional amounts outstanding under our Revolving Credit Facility. Other Facilities Other Facilities consists primarily of revolving credit facilities in our North America, Latin America and Europe segments ("Other Revolving Credit Facilities"). On an aggregate basis, borrowings under these facilities total $ 477 million with an additional $ 248 million available as of December 31, 2024, including $ 118 million in Short-term borrowings and $ 359 million in Other long-term debt. Maturity dates of the long-term facilities range from February 2027 to July 2027 and interest rates range from 5.90 % to 6.20 %. Borrowings under these facilities are secured by cash held by Brink's. In July 2024, we increased the capacity of the largest of these credit facilities from $ 250 million to $ 500 million. Minimum repayments of long-term debt are as follows: (In millions) Financing leases Other long-term debt Total 2025 $ 61.4 80.3 141.7 2026 57.9 118.0 175.9 2027 43.2 2,496.0 2,539.2 2028 33.0 10.9 43.9 2029 18.2 407.5 425.7 Later years 21.4 414.1 435.5 Total $ 235.1 3,526.8 3,761.9 The Senior Secured Credit Facility, Senior Unsecured Notes, Other Revolving Credit Facilities, and other debt facilities contain various financial and other covenants. The covenants, among other things, limit our ability to provide liens, restrict fundamental changes, limit transactions with affiliates and unrestricted subsidiaries, restrict changes to our fiscal year and to organizational documents, limit asset dispositions, limit the use of proceeds from asset sales, limit sale and leaseback transactions, limit investments, limit the ability to incur debt, restrict certain payments to shareholders, limit negative pledges, limit the ability to change the nature of our business, provide for a maximum 106 consolidated net leverage ratio and provide for minimum coverage of interest costs. If we were not to comply with the terms of our various financing agreements, the repayment terms could be accelerated and the commitments could be withdrawn. An acceleration of the repayment terms under one agreement could trigger the acceleration of the repayment terms under the other financing agreements. We were in compliance with all of these covenants at December 31, 2024. Financing Leases Property and equipment acquired under financing leases are included in property and equipment as follows: December 31, (In millions) 2024 2023 Asset class: Buildings $ 7.8 9.4 Vehicles 347.8 395.9 Machinery and equipment 122.6 82.9 478.2 488.2 Less: accumulated amortization ( 196.9 ) ( 204.5 ) Total $ 281.3 283.7 107 Note 16 - Accounts Receivable and Credit Losses Accounts receivable December 31, (In millions) 2024 2023 Trade $ 603.9 684.6 Other 154.1 124.8 Total accounts receivable 758.0 809.4 Allowance for doubtful accounts ( 24.5 ) ( 30.4 ) Accounts receivable, net $ 733.5 779.0 Credit losses We are exposed to credit losses primarily through sales of our Cash and Valuable Management services and DRS and AMS services to customers with operations in the U.S. as well as customers in more than 100 countries outside the U.S. We typically invoice our customers on a monthly basis and payment terms are generally between 30 and 60 days. We assess currently expected credit losses in our financial assets on a pool basis by aggregating financial assets with similar risk characteristics. We have pooled financial assets by geographic location because of the similarities within each location such as customers, payment terms, and services offered. Loss experience is monitored for each pool and we determine historical loss rates for each pool. These historical loss rates are the main assumption used in estimating expected credit losses over the life of the financial assets. We also considered current and expected economic conditions, particularly the effects of the pandemic, in determining an appropriate allowance. We monitor the aging of accounts receivable by country and write off any accounts that are deemed uncollectible. We also monitor any significant economic events to identify any current or expected trends and risks within a pool that could impact the collectability of outstanding accounts receivable balances that were not contemplated or relevant during a previous period. In the first quarter of 2022, as many of our regions began to recover from the COVID-19 pandemic, we re-assessed earlier assumptions and estimates, and we further refined our methodology of estimating the allowance for doubtful accounts. Our updated method now also includes an estimated allowance for accounts receivable significantly past due in order to adjust for at-risk receivables not captured in our previous method. As part of the analysis under the updated estimation methodology, we noted an increase in accounts receivable significantly past due, particularly in the U.S., and we recorded an additional allowance of $ 16.7 million. In the subsequent quarters of 2022, the additional allowance was reduced by $ 1.1 million as a result of collections. The following table is a rollforward of the allowance for doubtful accounts: Years Ended December 31, (In millions) 2024 2023 2022 Allowance for doubtful accounts: Beginning of year $ 30.4 38.3 16.9 Provision for uncollectible accounts receivable 8.5 12.8 22.3 Write offs and recoveries ( 13.6 ) ( 21.1 ) ( 3.4 ) Other — — 3.2 Foreign currency exchange effects ( 0.8 ) 0.4 ( 0.7 ) End of year $ 24.5 30.4 38.3 108 Note 17 - Leases We lease facilities, vehicles, certain DRS devices, ATMs, computers and other equipment under long-term operating and financing leases with varying terms. Most of the leases contain renewal and/or purchase options, exercisable at our sole discretion. The renewal periods differ by asset class and by country and are included in our determination of lease term if we determine we are reasonably certain to exercise the option. We have taken the component election for all material asset categories, except certain DRS devices. This election allows us to account for lease components (e.g., fixed payments or variable payments that depend on a rate that can be determined at commencement, including rent for the right to use the asset) together with non-lease components (e.g., other fixed payments that deliver a good or service including common-area maintenance costs) in the calculation of the right-of-use asset and corresponding liability. Variable costs, such as inflation adjusted payments for facilities, or non-lease components that vary periodically (included as part of the component election), are expensed as incurred. Our leases do not contain any material residual value guarantees or material restrictive covenants. The components of lease assets and liabilities were as follows: December 31, (In millions) Balance sheet classification 2024 2023 Assets: Operating lease assets Right-of-use assets, net $ 354.9 $ 337.7 Finance lease assets Property and equipment, net 281.3 283.7 Total leased assets $ 636.2 $ 621.4 Liabilities: Current: Operating Accrued liabilities $ 78.2 $ 79.5 Financing Current maturities of long-term debt 61.4 57.5 Noncurrent: Operating Lease liabilities 278.6 265.8 Financing Long-term debt 173.7 176.3 Total lease liabilities $ 591.9 $ 579.1 The components of lease expense were as follows: Years Ended December 31, (In millions) 2024 2023 2022 Operating lease cost (a) $ 168.6 $ 153.4 $ 133.6 Short-term lease cost 23.3 25.5 28.9 Finance lease cost: Amortization of related assets 52.4 44.5 37.9 Interest on related liabilities 17.5 14.0 10.1 Total lease cost $ 261.8 $ 237.4 $ 210.5 (a) Includes variable lease costs, which are immaterial. 109 Other information related to leases was as follows: Years Ended December 31, (In millions, except for lease term and discount rate) 2024 2023 2022 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 125.6 $ 107.9 $ 106.1 Operating cash flows from finance leases 17.5 14.0 10.1 Financing cash flows from finance leases 64.6 55.5 48.2 Right-of-use assets obtained in exchange for lease obligations: Operating leases 132.2 104.3 101.0 Finance leases 75.1 92.0 65.7 Weighted Average Remaining Lease Term Operating leases 6.2 years 6.5 years 6.3 years Finance leases 4.2 years 4.7 years 4.7 years Weighted Average Discount Rate Operating leases 7.0 % 6.8 % 6.5 % Finance leases 6.7 % 6.2 % 5.5 % As of December 31, 2024, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows: (In millions) Facilities DRS Devices Other Total 2025 $ 69.0 19.4 15.8 104.2 2026 57.0 17.1 10.6 84.7 2027 45.2 14.0 6.8 66.0 2028 36.9 9.6 3.4 49.9 2029 26.2 3.7 0.9 30.8 Later years 108.2 — 1.4 109.6 Total lease payments $ 342.5 63.8 38.9 445.2 Less: Interest 76.5 7.7 4.2 88.4 Present value of lease liabilities $ 266.0 56.1 34.7 356.8 As of December 31, 2024, minimum repayments of long-term debt under financing leases were as follows: (In millions) 2025 $ 74.2 2026 66.7 2027 48.9 2028 36.2 2029 19.7 Later years 31.4 Total finance lease payments $ 277.1 Less: Interest 42.0 Present value of finance lease liabilities $ 235.1 110 Note 18 - Share-Based Compensation Plans We have share-based compensation plans to attract and retain employees and non-employee directors and to more closely align their interests with those of our shareholders. We have outstanding share-based awards granted to employees under the 2017 Equity Incentive Plan (the "2017 Plan") and under the 2024 Equity Incentive Plan (the "2024 Plan"). The 2017 Plan and the 2024 Plan permit grants of restricted stock, restricted stock units, performance stock, performance stock units, stock appreciation rights, stock options, as well as other share-based awards to eligible employees. The 2017 Plan and the 2024 Plan also permit cash awards to eligible employees. The 2017 Plan became effective May 2017. The 2024 Plan became effective May 2024. During the first quarter ended March 31, 2023, the remaining outstanding awards granted under the 2013 Equity Incentive Plan (the "2013 Plan") were fully exercised. No further grants of awards will be made under the 2013 Plan or the 2017 Plan. We also have outstanding deferred stock units granted to directors under the 2017 Plan and the 2024 Plan. Share-based awards were previously granted to directors and remain outstanding under the Non-Employee Directors’ Equity Plan and the Directors’ Stock Accumulation Plan, each of which has expired. There are 3.8 million shares underlying share-based plans that are authorized, but not yet granted. Outstanding awards at December 31, 2024, include performance stock units, restricted stock units, deferred stock units, time-based stock options, and certain awards that will be settled in cash. Compensation Expense Compensation expense is measured using the fair-value-based method. Prior to 2020, for employee and director awards considered equity grants, compensation expense is recognized from the award or grant date to the earlier of the retirement-eligible date or the vesting date. In 2020, the retirement eligibility provisions for many employee awards were changed on a go-forward basis to require a six month notification period prior to actual retirement. For the 2020 awards, we recognized expense from the grant date to six months after the participant's retirement eligible date. In 2021, the retirement eligibility provisions were changed to require a minimum of a one year service period in order to meet the retirement eligible conditions. For awards granted after 2020, we recognize expense from the grant date to the earlier of the retirement-eligible date (provided it is not less than one year from the grant date) or the vesting date. For awards considered liability awards, compensation cost is based on the change in the fair value of the instrument for each reporting period and the percentage of the requisite service that has been rendered. Compensation expenses are classified as selling, general and administrative expenses in the consolidated statements of operations. Compensation expenses for the last three years and the amount of unrecognized expense for awards outstanding at December 31, 2024, were as follows: Compensation Expense Unrecognized Expense for Nonvested Awards at Weighted-average No. of Years Unrecognized Expense to be Recognized Years Ended December 31, Dec 31, 2024 (in millions except years) 2024 2023 2022 Performance stock units $ 25.2 20.3 34.9 $ 22.3 1.6 Restricted stock units 9.9 10.4 12.0 8.4 1.4 Deferred stock units and fees paid in stock 1.4 1.4 1.3 0.4 0.3 Time-based options — — 0.4 — — Cash based awards 1.9 2.8 1.3 1.4 1.4 Share-based payment expense 38.4 34.9 49.9 Income tax benefit ( 8.7 ) ( 7.9 ) ( 11.5 ) Share-based payment expense, net of tax $ 29.7 27.0 38.4 111 Value of Distributed or Exercised Awards The value of shares distributed or options exercised in the last three years is as follows: Value of Shares Distributed or Exercised (a) Years Ended December 31, (in millions) 2024 2023 2022 Performance stock units $ 35.3 16.3 10.0 Restricted stock units 13.4 8.5 9.2 Deferred stock units and fees paid in stock 1.4 1.0 0.6 Performance-based options (a) 1.3 3.0 15.2 Time-based vesting options (a) 2.2 0.1 — Total $ 53.6 28.9 35.0 Income tax benefit realized $ 12.7 7.0 8.1 (a) Intrinsic value for options. Restricted Stock Units (“RSUs”) We grant RSUs that contain only a service condition as part of our compensation program. RSUs are paid out in shares of Brink’s stock when the awards vest. For RSUs granted during the last three years, the units generally vest ratably in three equal annual installments. In 2020, we additionally granted RSUs that vested after a stated two year service condition had been met. We measure the fair value of RSUs based on the price of Brink’s stock at the grant date, adjusted for a discount for dividends not received or accrued during the vesting period. The weighted-average fair value per share at grant date was $ 85.14 in 2024, $ 65.77 in 2023 and $ 64.30 in 2022. The weighted-average discount was approximately 2 % in each of 2024, 2023 and 2022. The following table summarizes RSU activity during 2024: Shares (in thousands) Weighted-Average Grant Date Fair Value Per Share Nonvested balance as of December 31, 2023 320.2 $ 65.89 Activity from January 1 to December 31, 2024: Granted 148.4 85.14 Forfeited ( 32.3 ) 72.33 Vested ( 145.9 ) 67.44 Nonvested balance as of December 31, 2024 290.4 $ 74.24 Performance Stock Units (“PSUs”) Historically, we have granted Internal Metric PSUs ("IM PSUs") and Relative Total Shareholder Return PSUs ("TSR PSUs") as part of our compensation program. The majority of outstanding IM PSUs contain a performance condition as well as a service condition. We measure the fair value of these PSUs based on the price of Brink’s stock at the grant date, adjusted for a discount for dividends not received or accrued during the vesting period. For IM PSUs granted in 2021, the performance period was from January 1, 2021 to December 31, 2022 with an additional one year of service after 2022. For IM PSUs granted in 2022, the performance period was from January 1, 2022 to December 31, 2024. For IM PSUs granted in 2023, the performance period is from January 1, 2023 to December 31, 2025. For IM PSUs granted in 2024, the performance period is from January 1, 2024 to December 31, 2026. In 2023 and in 2024, we also granted IM PSUs to certain employees which contain a market condition (in the form of a relative TSR modifier), a performance condition, and a service condition. We measure the fair value of IM PSUs containing a market condition at the grant date using a Monte Carlo simulation model. IM PSUs will be paid out in shares of Brink’s stock when the awards vest. For the IM PSUs granted in 2024, 2023 and 2022, the number of shares paid out ranges from 0 % to 200 % of an employee’s award, depending on the achievement of pre-established financial goals over the performance period. Shares are not paid out if the financial results do not meet a pre-established threshold level of performance. Before 2023, we granted TSR PSUs containing a market condition as well as a service condition. We measure the fair value of TSR PSUs at the grant date using a Monte Carlo simulation model. TSR PSUs granted have a three year performance period and typically vest at the end of three years . TSR PSUs are paid out in shares of Brink’s stock when the awards vest. The number of shares paid out ranges from 0 % to 200 % of an employee's award depending on Brink's relative TSR rank among a selected peer group. 112 The following table summarizes all PSU activity during 2024: Shares (in thousands) Weighted-Average Grant Date Fair Value Per Share Nonvested balance as of December 31, 2023 698.5 $ 72.15 Activity from January 1 to December 31, 2024: Granted 214.0 82.19 Forfeited or expired ( 44.3 ) 70.53 Vested (a) ( 229.1 ) 80.47 Nonvested balance as of December 31, 2024 639.1 $ 72.64 (a) The vested PSUs presented are based on the target amount of the award. In accordance with the terms of the underlying award agreements, the actual shares earned and distributed for the performance period ended December 31, 2023 were 438.7 thousand, compared to target shares of 229.1 thousand. The following table provides the terms and weighted-average assumptions used in the Monte Carlo simulation model for the IM PSUs with a market condition granted in 2024 and 2023 and the TSR PSUs granted in 2022: Terms and Assumptions Used to Estimate Grant Date Fair Value 2024 IM PSUs (a) 2023 IM PSUs (a) 2022 TSR PSUs Terms of awards: Performance period Jan. 1, 2024 to Jan. 1, 2023 to Jan. 1, 2022 to Dec. 31, 2025 Dec. 31, 2025 Dec. 31, 2024 Weighted-average assumptions used to estimate fair value: Expected dividend yield (b) 1.1 % 1.2 % 1.2 % Expected stock price volatility (c) 31.1 % 41.9 % 48.5 % Risk-free interest rate (d) 4.3 % 4.5 % 1.8 % Contractual term in years 2.8 2.8 2.8 Weighted-average fair value estimates at grant date: In millions $ 10.5 $ 8.5 $ 3.4 Fair value per share $ 83.81 $ 72.51 $ 87.31 (a) In 2024 and 2023, we granted IM PSUs to certain employees which contain a market condition (in the form of a relative TSR modifier). (b) The stock price projection in the Monte Carlo simulation model assumed a 0 % dividend yield, which is mathematically equivalent to reinvesting dividends over the performance period. For the valuation of these PSUs with market conditions, because the holders of the awards have no rights to any dividend paid during the vesting period, we applied a dividend yield in the Monte Carlo simulation model to reduce the projected stock price as of the grant date. (c) The expected stock price volatility was calculated on the grant date for the most recent term equivalent to the contractual term in years. (d) The risk-free interest rate on each date of grant is the rate for a zero-coupon U.S. Treasury bill that was commensurate with the grant date contractual term. 113 Options Prior to 2019, we granted primarily performance-based stock options to select senior executives. These performance-based awards have a service condition as well as a market condition. We measure the fair value of these awards at the grant date using a Monte Carlo simulation model. No performance-based options were granted after 2018. In 2020, 2019 and 2017, we granted time-based vesting stock options to certain senior executives. We measure the fair value of these awards at the grant date using the Black-Scholes-Merton option pricing model. When vested, options entitle the holder to purchase a specified number of shares of Brink’s stock at a price set at the date the options were granted. The option price for Brink’s options was equal to the market price of Brink’s stock on the award date. Options granted to employees have a maximum term of six years . Performance-Based Option Activity The table below summarizes the activity associated with grants of performance-based options: Shares (in thousands) Weighted- Average Exercise Price Per Share Weighted-Average Grant Date Fair Value Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (a) (in millions) Outstanding at December 31, 2023 (b) 174.4 $ 73.45 $ 17.92 Forfeited or expired — — — Exercised (b) ( 174.4 ) 73.45 17.92 Outstanding at December 31, 2024 (b) — $ — $ — — $ — Of the above, as of December 31, 2024: Exercisable — $ — — $ — Expected to vest in future periods (c) — $ — — $ — (a) The intrinsic value of a stock option is the difference between the market price of the shares underlying the option and the exercise price of the option. The market price at December 31, 2024 was $ 92.77 . (b) There were 174.4 thousand exercisable options with a weighted average exercise price of $ 73.45 at December 31, 2023 an d 446.2 thousand exercisable options with a weighted average exercise price of $ 61.23 a t December 31, 2022. (c) At December 31, 2024, all performance options had vested and none were outstanding. Time-based Vesting Option Activity The table below summarizes the activity associated with grants of time-based vesting options: Shares (in thousands) Weighted- Average Exercise Price Per Share Weighted-Average Grant Date Fair Value Per Share Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (a) (in millions) Outstanding at December 31, 2023 (b) 115.7 $ 80.74 $ 21.43 Exercised ( 93.2 ) 79.92 21.54 Outstanding at December 31, 2024 22.5 $ 84.17 $ 20.98 1.1 $ 0.2 Of the above, as of December 31, 2024: Exercisable 22.5 $ 84.17 1.1 $ 0.2 Expected to vest in future periods (c) — $ — — $ — (a) The intrinsic value of a stock option is the difference between the market price of the shares underlying the option and the exercise price of the option. The market price at December 31, 2024 was $ 92.77 . (b) There were 115.7 thousand exercisable options with a weighted average exercise price of $ 80.74 at December 31, 2023 and 102.7 thousand exercisable options with a weighted average exercise price of $ 79.26 at December 31, 2022. (c) At December 31, 2024, all outstanding time-based options were vested. 114 The following table provides the weighted-average assumptions used in the Black-Scholes-Merton option pricing model for the time-based vesting options granted in 2020: Assumptions Used to Estimate Grant Date Fair Value of Time-Based Options 2020 Assumptions used to estimate fair value: Expected dividend yield (a) 0.7 % Expected stock price volatility (b) 29.7 % Risk-free interest rate (c) 1.3 % Expected term in years (d) 4.5 Weighted-average fair value estimates at grant date: In millions $ 1.7 Fair value per share $ 21.10 (a) The expected dividend yield is the calculated annual yield on Brink's stock at the time of the grant. (b) The expected stock price volatility was calculated at time of the grant after reviewing the historic volatility of our stock using daily close prices. (c) The risk-free interest rate at each grant date was the rate for a zero-coupon U.S. Treasury bill that was commensurate with the expected life of 4.5 years. (d) The expected term of the options was based on historical exercise, expiration and post-cancellation behavior. Deferred Stock Units (“DSUs”) We granted DSUs to our non-employee directors as part of our compensation program. We measure the fair value of DSUs at the grant date, based on the price of Brink's stock, and, if applicable, adjusted for a discount for dividends not received or accrued during the vesting period. DSUs granted after 2014 will be paid out in shares of Brink's stock on the first anniversary of the grant date, provided that the director has not elected to defer the distribution of shares until a later date. DSUs granted prior to 2015, in general, will be paid out in shares of stock following separation from service. The following table summarizes all DSU activity during 2024: Shares (in thousands) Weighted-Average Grant-Date Fair Value Nonvested balance as of December 31, 2023 19.2 $ 62.43 Activity from January 1 to December 31, 2024: Granted 13.6 87.93 Vested ( 19.2 ) 62.43 Nonvested balance as of December 31, 2024 13.6 $ 87.93 The weighted-average grant-date fair value estimate per share for DSUs granted was $ 87.93 in 2024, $ 62.43 in 2023 and $ 54.74 in 2022. Other Share-Based Compensation We have a deferred compensation plan that allows participants to defer a portion of their compensation into stock units. Units will be redeemed by employees for an equal number of shares of Brink’s stock. Employee deferred compensation accounts held 77,573 units at December 31, 2024, and 106,836 units at December 31, 2023. We have a stock accumulation plan for our non-employee directors that, prior to 2014, provided for awards of stock units. Additionally, some fees paid to our directors are in the form of stock and may be deferred for distribution to a later date. Directors’ deferred compensation accounts held 21,818 units at December 31, 2024, and 21,075 units at December 31, 2023. 115 Note 19 - Capital Stock Common Stock At December 31, 2024, we had 100 million shares of common stock authorized and 42.9 million shares issued and outstanding. Dividends We paid regular quarterly dividends on our common stock during the last three years. On September 19, 2024, the Board declared a regular quarterly dividend of 24.25 cents per share payable on December 2, 2024 to shareholders of record on November 4, 2024. The payment of future dividends is at the discretion of the Board and is dependent on our future earnings, financial condition, shareholder equity levels, cash flow, business requirements and other factors. Preferred Stock At December 31, 2024, we had the authority to issue up to 2.0 million shares of preferred stock with a par value of $ 10 per share. Share Repurchase Program In November 2023, our Board authorized a $ 500 million share repurchase program that expires on December 31, 2025 (the “2023 Repurchase Program”). Under the 2023 Share Repurchase Program, we are not obligated to repurchase any specific dollar amount or number of shares. The timing and volume of share repurchases may be executed at the discretion of management on an opportunistic basis, or pursuant to trading plans or other arrangements. Share repurchases under this program may be made in the open market, in privately negotiated transactions, or otherwise. During the 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. In 2022, we repurchased a total of 948,395 shares of our common stock for an aggregate of $ 52.2 million and an average price of $ 55.01 per share. These shares were retired upon repurchase. The 2021 Repurchase Program expired on December 31, 2023 with approximately $ 28 million remaining available. Our Board previously authorized a $ 250 million repurchase program in February 2020 (the “2020 Repurchase Program”). Under the 2020 Repurchase Program, we entered into three accelerated share repurchase arrangements ("ASR") with a financial institution. In each case, in exchange for an upfront payment at the beginning of each purchase period, the financial institution delivered to us shares of our common stock. The shares received were retired in the period they were delivered to us, and the upfront payment was accounted for as a reduction to shareholders' equity in the consolidated balance sheet. 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. Shares Used to Calculate Earnings per Share Years Ended December 31, (In millions) 2024 2023 2022 Weighted-average shares Basic (a) 44.3 46.2 47.3 Effect of dilutive stock awards 0.5 0.7 0.5 Diluted (a) 44.8 46.9 47.8 Antidilutive stock excluded from denominator (b) — 0.3 0.6 (a) We have deferred compensation plans for directors and certain of our employees. Some amounts owed to participants are denominated in common stock units. Each unit represents one share of common stock. The number of shares used to calculate basic earnings per share includes the weighted-average common stock units credited to employees and directors under the deferred compensation plans. Additionally, nonvested units containing only a service requirement are also included in the computation of basic weighted-average shares when the requisite service period has been completed. Accordingly, basic and diluted shares include weighted-average units of 0.2 million in 2024, 0.3 million in 2023 and 0.3 million in 2022. (b) Under the November 2021 ASR, based on our stock prices from November 1, 2021 to March 31, 2022, we would have received additional shares under the ASR if the settlement date had been March 31, 2022. Because the ASR settlement date did not occur until April 2022 and because any anticipated receipt of additional shares of our common stock would have been antidilutive, no amounts were included the computation of diluted EPS. The antidilutive impact from the first quarter of 2022 continued to have year-to-date antidilutive impact for the remainder of 2022. 116 Note 20 - Supplemental Cash Flow Information Years Ended December 31, 2024 2023 2022 Cash paid for: Interest $ 235.3 195.8 117.5 Income taxes, net 122.1 96.3 127.8 Argentina Marketable Securities In the last three years, we have used available Argentine pesos to purchase equity and available-for-sale debt securities. Cash outflows for the purchase of these financial instruments totaled $ 29.7 million in 2024, $ 131.1 million in 2023, and $ 27.6 million in 2022. Cash inflows for the sale of these financial instruments totaled $ 14.6 million in 2024, $ 145.6 million in 2023, and $ 9.9 million in 2022. At the time of any future sale of these financial instruments, proceeds received will be solely in Argentine pesos. These cash flows are reported in investing activities. Non-cash Investing and Financing Activities We acquired armored vehicles, DRS devices and other equipment under financing lease arrangements in the last three years including $ 75.1 million in 2024, $ 92.0 million in 2023 and $ 65.7 million in 2022. Loans Held for Investment In France, as part of an ATM managed services contract for a large customer, we purchase the ATMs at the beginning of the contract. However, since these ATMs are specifically for the benefit of the customer and transfer back to the customer at the end of the contract, this is recorded as a financing transaction. As a result, the loan to the customer, net of payments received, is treated as investing cash flows. Cash Paid for Acquisitions Included in Financing Activities In 2024 we paid $ 0.8 million in settlements related to acquired business operations in the Europe segment. In 2023 we paid $ 10.3 million in settlements related to the Note Machine acquisition and $ 0.8 million related to the Touchpoint 21 acquisition. In 2022, we paid $ 2.8 million in settlements related to the PAI acquisition. These payments are reported as cash flows from financing activities as the payments were made more than three months after the acquisition date. Restricted Cash (Cash Supply Chain Services) In France, we offer services to certain of our customers where we manage some or all of their cash supply chains. Providing this service requires our French subsidiary to take temporary title to the cash received from the management of our customers' cash supply chains until the cash is returned to the customers. The cash for which we have temporary title is restricted and cannot be used for any other purpose other than to service our customers who participate in this service offering. In Malaysia, we offer ATM replenishment services to certain of our financial institution customers. Providing this service requires our Malaysia subsidiary to take temporary title to the cash received in advance of ATM replenishment. The cash for which we have temporary title is restricted and cannot be used for any other purpose other than to service our customers who participate in this service offering. In accordance with our revolving credit facilities, we are required to maintain restricted cash reserves totaling $ 44.0 million ($ 40.9 million at December 31, 2023) and, due to this contractual restriction, we have classified these amounts as restricted cash. At December 31, 2024, we held $ 445.1 million of restricted cash ($ 232.7 million represented restricted cash held for customers and $ 166.5 million represented accrued liabilities). At December 31, 2023, we held $ 507.0 million of restricted cash ($ 298.7 million represented restricted cash held for customers and $ 167.8 million represented accrued liabilities). Lessor Debt Financing In certain leasing transactions, we acquire assets through capital expenditures that are then sold to lessors in which the cash received is classified as borrowings from financing activities rather than proceeds from investing activities. Cash inflows related to these transactions totaled $ 46.6 million in 2024 compared to $ 7.5 million in 2023 and $ 19.4 million in 2022 and are included in Other long-term debt borrowings within financing activities in the consolidated statements of cash flows. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows. December 31, (In millions) 2024 2023 Cash and cash equivalents $ 1,395.3 1,176.6 Restricted cash 445.1 507.0 Total, cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 1,840.4 1,683.6 117 Note 21 - Other Operating Income (Expense) Years Ended December 31, (In millions) 2024 2023 2022 Foreign currency items: Transaction losses (a) $ 16.5 ( 85.1 ) ( 68.7 ) Derivative instrument gains (losses) ( 11.0 ) 21.3 42.0 Royalty income 8.0 7.5 9.1 Impairment losses ( 4.8 ) ( 10.3 ) ( 9.0 ) Indemnification asset adjustments (b) ( 2.4 ) ( 3.4 ) ( 7.8 ) Contingent consideration liability adjustments (c) — 6.2 — Gains on sale of property and other assets 3.9 1.9 2.7 Share in earnings of equity method affiliates 3.0 2.8 2.1 Other 5.5 4.9 4.3 Other operating income (expense) $ 18.7 ( 54.2 ) ( 25.3 ) (a) Includes remeasurement losses in Argentina of $ 18.4 million in 2024, $ 79.1 million in 2023 and $ 37.6 million in 2022 related to highly inflationary accounting. (b) Post-acquisition adjustments to indemnification assets recognized in previous business acquisitions. (c) In 2023, we derecognized contingent consideration liabilities, primarily related to the NoteMachine business acquisition. Note 22 - Interest and Other Nonoperating Income (Expense) Years Ended December 31, (In millions) 2024 2023 2022 Interest income $ 48.9 36.3 23.6 Retirement benefit cost other than service cost ( 0.2 ) ( 0.5 ) ( 16.7 ) Foreign currency transaction gains (losses) 0.3 ( 1.1 ) 2.4 Non-income taxes on intercompany billings ( 2.1 ) ( 2.6 ) ( 2.3 ) Argentina turnover tax ( 3.4 ) ( 6.8 ) ( 1.8 ) Gain (loss) on equity and debt securities (a) 5.0 ( 12.8 ) — Other 0.2 1.9 ( 1.5 ) Interest and other nonoperating income (expense) $ 48.7 14.4 3.7 (a) In 2023, the loss was primarily related to the impact of highly inflationary accounting on investments in marketable securities held by Argentina. 118 Note 23 - Other Commitments and Contingencies In August 2020, the Company received a subpoena issued in connection with an investigation being conducted by the U.S. Department of Justice (the “DOJ”), 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. In October 2021, the FNE filed a complaint before the Chilean antitrust court alleging that Brink’s Chile (as well as competitor companies) engaged in collusion in 2017 and 2018 and requested that the court approve a fine of $ 30.5 million. The Company filed its response to the complaint in November 2022, which signaled the beginning of the evidentiary phase. The Company intends to vigorously defend itself against the FNE's complaint. Based on available information to date, the Company recorded a charge of $ 9.5 million in the third quarter of 2021 in connection with this matter. 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. We have recorded accruals for losses that are considered probable and reasonably estimable. Except as otherwise noted, we do not believe that it is reasonably possible the ultimate disposition of any of the legal matters currently pending against the Company could have a material adverse effect on our liquidity, financial position or results of operations. At December 31, 2024, we had noncancellable commitments for $ 18.5 million in equipment purchases, and information technology and other services. Note 24 - Reorganization and Restructuring 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. In total, we have recognized $ 34.0 million in charges under this program, including $ 0.8 million in 2024. The actions under this program were substantially completed in 2024. The following table summarizes the changes in the accrued liability for costs incurred, payments and utilization, and foreign currency exchange effects of the 2022 Global Restructuring Plan: (In millions) Severance Costs Other Total Balance as of December 31, 2022 $ 11.5 — 11.5 Expense 8.0 3.0 11.0 Payments and utilization ( 16.9 ) ( 3.0 ) ( 19.9 ) Foreign currency exchange effects 0.2 — 0.2 Balance as of December 31, 2023 $ 2.8 — 2.8 Expense — 0.8 0.8 Payments and utilization ( 2.4 ) ( 0.8 ) ( 3.2 ) Foreign currency exchange effects ( 0.1 ) — ( 0.1 ) Balance as of December 31, 2024 $ 0.3 — 0.3 Other Restructurings 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. We recognized $ 0.7 million of net costs in 2024. The actions were substantially completed in 2024. 119 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.