Virginia
|
54-1317776
|
|||
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|||
incorporation
or organization)
|
Identification
No.)
|
|||
P.O.
Box 18100,
|
||||
1801
Bayberry Court
|
||||
Richmond,
Virginia
|
23226-8100
|
|||
(Address
of principal executive offices)
|
(Zip
Code)
|
|||
Registrant’s
telephone number, including area code
|
(804)
289-9600
|
|||
Securities
registered pursuant to Section 12(b) of the Act:
|
||||
Name
of each exchange on
|
||||
Title of each class
|
which registered
|
|||
The
Brink’s Company Common Stock, Par Value $1
|
New
York Stock Exchange
|
|||
Securities
registered pursuant to Section 12(g) of the
Act: None
|
Page
|
||
Item
1.
|
Business
|
2
|
Item
1A.
|
Risk
Factors
|
10
|
Item
1B.
|
Unresolved
Staff Comments
|
15
|
Item
2.
|
Properties
|
15
|
Item
3.
|
Legal
Proceedings
|
15
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
15
|
Executive
Officers of the Registrant
|
16 | |
PART
II
|
||
Item
5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and
Issuer
|
|
Purchases
of Equity Securities
|
17
|
|
Item
6.
|
Selected
Financial Data
|
19
|
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
20
|
Item
7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
63
|
Item
8.
|
Financial
Statements and Supplementary Data
|
65
|
Item
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
109
|
Item
9A.
|
Controls
and Procedures
|
109
|
Item
9B.
|
Other
Information
|
109
|
PART
III
|
||
Item
10.
|
Directors,
Executive Officers and Corporate Governance
|
110
|
Item
11.
|
Executive
Compensation
|
110
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
110
|
Item
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
110
|
Item
14.
|
Principal
Accountant Fees and Services
|
110
|
PART
IV
|
||
Item
15.
|
Exhibits
and Financial Statement Schedules
|
111
|
PART
I
|
·
|
Annual
reports on Form 10-K
|
·
|
Quarterly
reports on Form 10-Q
|
·
|
Current
reports on Form 8-K, and amendments to those
reports
|
·
|
Corporate
governance policies
|
·
|
Business
Code of Ethics
|
·
|
The
charters of the following Board Committees: Audit and Ethics,
Compensation and Benefits, and Corporate Governance and
Nominating.
|
(In
millions)
|
2009
|
%
total
|
%
change
|
2008
|
%
total
|
%
change
|
2007
|
%
total
|
%
change
|
|||||||||||||||||||||||||||
Revenues
by region:
|
||||||||||||||||||||||||||||||||||||
EMEA:
|
||||||||||||||||||||||||||||||||||||
France
|
$ | 615 | 20 | (12 | ) | $ | 698 | 22 | 11 | $ | 629 | 23 | 15 | |||||||||||||||||||||||
Other
|
642 | 20 | (3 | ) | 661 | 21 | 18 | 563 | 21 | 23 | ||||||||||||||||||||||||||
Total
|
1,257 | 40 | (7 | ) | 1,359 | 43 | 14 | 1,192 | 44 | 19 | ||||||||||||||||||||||||||
Latin America:
|
||||||||||||||||||||||||||||||||||||
Venezuela (a)
|
376 | 12 | 7 | 351 | 11 | 56 | 225 | 8 | 31 | |||||||||||||||||||||||||||
Brazil
|
258 | 8 | 33 | 194 | 6 | 20 | 161 | 6 | 36 | |||||||||||||||||||||||||||
Other
|
271 | 9 | 6 | 256 | 8 | 23 | 208 | 8 | 27 | |||||||||||||||||||||||||||
Total
|
905 | 29 | 13 | 801 | 25 | 35 | 594 | 22 | 31 | |||||||||||||||||||||||||||
Asia Pacific
|
79 | 2 | 10 | 72 | 2 | 15 | 63 | 2 | (7 | ) | ||||||||||||||||||||||||||
Total
International
|
2,241 | 71 | - | 2,232 | 70 | 21 | 1,849 | 68 | 21 | |||||||||||||||||||||||||||
North America
|
894 | 29 | (4 | ) | 932 | 30 | 5 | 886 | 32 | 7 | ||||||||||||||||||||||||||
Total
Revenues
|
$ | 3,135 | 100 | (1 | ) | $ | 3,164 | 100 | 16 | $ | 2,735 | 100 | 16 |
|
Amounts
may not add due to rounding.
|
(a)
|
2009
Venezuela revenues were $138 million on an adjusted basis, or 5%, of
Brink’s $2.9 billion consolidated adjusted revenues in
2009. Adjusted revenues are not reported under U.S. GAAP, and
present Venezuela revenues at the less-favorable parallel market currency
exchange rate. The adjustments are described in detail and are
reconciled to our GAAP results on pages
39-40.
|
·
|
Cash-in-transit
(“CIT”) armored car transportation
|
·
|
Automated
teller machine (“ATM”) replenishment and
servicing
|
·
|
Global
Services – arranging secure long-distance transportation of
valuables
|
·
|
Cash
Logistics – supply chain management of
cash
|
·
|
Guarding
services, including airport
security
|
·
|
cash
between businesses and banks
|
·
|
cash,
securities and other valuables between commercial banks, central banks,
and investment banking and brokerage
firms
|
·
|
new
currency, coins and precious metals for central
banks
|
·
|
money
processing and cash management
services
|
·
|
deploying
and servicing “intelligent” safes and safe control devices, including our
patented CompuSafe®
service
|
·
|
integrated
check and cash processing services (“Virtual
Vault”)
|
·
|
check
imaging services
|
·
|
Organic
Growth Strategy
|
1.
|
Continue
to develop and expand our portfolio of high-margin services (for example,
Cash Logistics and Global Services)
|
2.
|
Penetrate
new geographies with strong growth potential for our existing service
offerings
|
·
|
Adjacency
Growth Strategy – enter new security-related markets where we can create
value for customers with our brand, capabilities and other competitive
advantages
|
·
|
Acquisitions
to supplement organic growth – acquire businesses that meet internal
metrics for projected growth, profitability and return on
investment
|
·
|
brand
name recognition
|
·
|
reputation
for a high level of service and
security
|
·
|
risk
management and logistics expertise
|
·
|
global
infrastructure and customer base
|
·
|
proprietary
cash processing and information
systems
|
·
|
proven
operational excellence
|
·
|
high-quality
insurance coverage and general financial
strength
|
·
|
the
difficulty of enforcing agreements, collecting receivables and protecting
assets through foreign legal
systems;
|
·
|
trade
protection measures and import or export licensing
requirements;
|
·
|
difficulty
in staffing and managing widespread
operations;
|
·
|
required
compliance with a variety of foreign laws and
regulations;
|
·
|
varying
permitting and licensing requirements in different
jurisdictions;
|
·
|
changes
in the general political and economic conditions in the countries where we
operate, particularly in emerging
markets;
|
·
|
threat
of nationalization and
expropriation;
|
·
|
higher
costs and risks of doing business in a number of foreign
jurisdictions;
|
·
|
limitations
on the repatriation of
earnings;
|
·
|
fluctuations
in equity, revenues and profits due to changes in foreign currency
exchange rates, including measures taken by governments to influence
currency exchange rates; and
|
·
|
inflation
levels exceeding that of the U.S.
|
·
|
the
rate of price increases for services will not keep pace with cost
inflation;
|
·
|
adverse
economic conditions may discourage business growth which could affect
demand for our services;
|
·
|
the
devaluation of the currency may exceed the rate of inflation and reported
U.S. dollar revenues and profits may decline;
and
|
·
|
these
countries may be deemed “highly inflationary” for U.S. GAAP
purposes.
|
·
|
that
we will be able to acquire attractive businesses on favorable
terms,
|
·
|
that
all future acquisitions will be accretive to
earnings,
|
·
|
or
that future acquisitions will be rapidly and efficiently integrated into
existing operations.
|
Facilities
|
Vehicles
|
|||||||||||||||||||||||
Region
|
Leased
|
Owned
|
Total
|
Leased
|
Owned
|
Total
|
||||||||||||||||||
U.
S.
|
174 | 25 | 199 | 2,118 | 293 | 2,411 | ||||||||||||||||||
Canada
|
40 | 13 | 53 | 442 | 86 | 528 | ||||||||||||||||||
North
America
|
214 | 38 | 252 | 2,560 | 379 | 2,939 | ||||||||||||||||||
EMEA
|
229 | 48 | 277 | 863 | 2,877 | 3,740 | ||||||||||||||||||
Latin
America
|
193 | 50 | 243 | 450 | 2,868 | 3,318 | ||||||||||||||||||
Asia
Pacific
|
103 | - | 103 | 2 | 512 | 514 | ||||||||||||||||||
International
|
525 | 98 | 623 | 1,315 | 6,257 | 7,572 | ||||||||||||||||||
Total
|
739 | 136 | 875 | 3,875 | 6,636 | 10,511 |
Name
|
Age
|
Positions
and Offices Held
|
Held
Since
|
|
Executive
Officers:
|
||||
Michael
T. Dan
|
59
|
President,
Chief Executive Officer and Chairman of the Board
|
1998
|
|
Joseph
W. Dziedzic
|
41
|
Vice
President and Chief Financial Officer
|
2009
|
|
Frank
T. Lennon
|
68
|
Vice
President and Chief Administrative Officer
|
2005
|
|
McAlister
C. Marshall, II
|
40
|
Vice
President and General Counsel
|
2008
|
|
Matthew
A. P. Schumacher
|
51
|
Controller
|
2001
|
|
Other
Officers:
|
||||
Jonathan
A. Leon
|
43
|
Treasurer
|
2008
|
|
Lisa
M. Landry
|
44
|
Vice
President - Tax
|
2009
|
|
Michael
J. McCullough
|
39
|
Secretary
|
2009
|
|
Arthur
E. Wheatley
|
67
|
Vice
President – Risk
Management and Insurance
|
1988
|
PART
II
|
2009
Quarters
|
2008
Quarters
|
|||||||||||||||||||||||||||||||
1st
|
2nd
|
3rd
|
4th
|
1st
|
2nd
|
3rd
|
4th
|
|||||||||||||||||||||||||
Dividends
declared per common share
|
$ | 0.1000 | 0.1000 | 0.1000 | 0.1000 | $ | 0.1000 | 0.1000 | 0.1000 | 0.1000 | ||||||||||||||||||||||
Stock
prices:
|
||||||||||||||||||||||||||||||||
High
|
$ | 32.36 | 31.28 | 30.66 | 26.89 | $ | 70.11 | 74.61 | 71.48 | 61.32 | ||||||||||||||||||||||
Low
|
20.73 | 25.79 | 25.00 | 22.23 | 49.04 | 65.23 | 57.68 | 18.19 |
Years
Ended December 31,
|
||||||||||||||||||||||||
2004
|
2005
|
2006
|
2007
|
2008
|
2009
|
|||||||||||||||||||
The
Brink's Company
|
$ | 100.00 | 121.56 | 162.82 | 153.03 | 215.76 | 198.27 | |||||||||||||||||
S&P
Midcap 400 Index
|
100.00 | 112.55 | 124.17 | 134.08 | 85.50 | 117.46 | ||||||||||||||||||
S&P
Midcap 400 Commercial Services & Supplies Index
|
$ | 100.00 | 103.86 | 122.68 | 140.56 | 95.71 | 114.63 | |||||||||||||||||
Copyright
© 2010, Standard & Poor's, a division of The McGraw-Hill Companies,
Inc. All rights reserved.
|
|
(1)
|
For
the line designated as “The Brink’s Company” the graph depicts the
cumulative return on $100 invested in The Brink’s Company’s common
stock. For the S&P Midcap 400 Index and the S&P Midcap
400 Commercial Services & Supplies Index, cumulative returns are
measured on an annual basis for the periods from December 31, 2004,
through December 31, 2009, with the value of each index set to $100 on
December 31, 2004. Total return assumes reinvestment of dividends and the
reinvestment of proceeds from the sale of the shares received related to
the spin-off of our former monitored security business on October 31,
2008. We chose the S&P Midcap 400 Index and the S&P Midcap 400
Commercial Services & Supplies Index because we are included in these
indices, which broadly measure the performance of mid-size companies in
the United States market.
|
(In
millions, except per share amounts)
|
2009
|
2008
|
2007
|
2006
|
2005
|
|||||||||||||||
Revenues
and Income
|
||||||||||||||||||||
Revenues
|
$ | 3,135.0 | 3,163.5 | 2,734.6 | 2,354.3 | 2,113.3 | ||||||||||||||
Segment
operating profit
|
213.4 | 271.9 | 223.3 | 184.1 | 119.5 | |||||||||||||||
Non-segment
(a)
|
(46.6 | ) | (43.4 | ) | (62.3 | ) | (73.4 | ) | (82.0 | ) | ||||||||||
Operating
profit
|
166.8 | 228.5 | 161.0 | 110.7 | 37.5 | |||||||||||||||
Income
attributable to Brink’s:
|
||||||||||||||||||||
Income
(loss) from continuing operations
|
195.7 | 131.8 | 78.4 | 53.1 | (3.3 | ) | ||||||||||||||
Income
from discontinued operations (b)
|
4.5 | 51.5 | 58.9 | 534.1 | 151.1 | |||||||||||||||
Cumulative
effect of change in accounting principle (c)
|
- | - | - | - | (5.4 | ) | ||||||||||||||
Net income attributable to
Brink’s
|
$ | 200.2 | 183.3 | 137.3 | 587.2 | 142.4 | ||||||||||||||
Financial
Position
|
||||||||||||||||||||
Property
and equipment, net
|
$ | 549.5 | 534.0 | 1,118.4 | 981.9 | 867.4 | ||||||||||||||
Total
assets
|
1,879.8 | 1,815.8 | 2,394.3 | 2,188.0 | 3,036.9 | |||||||||||||||
Long-term
debt, less current maturities
|
172.3 | 173.0 | 89.2 | 126.3 | 251.9 | |||||||||||||||
Brink’s
shareholders’ equity
|
534.9 | 214.0 | 1,046.3 | 753.8 | 837.5 | |||||||||||||||
Supplemental
Information
|
||||||||||||||||||||
Depreciation
and amortization
|
$ | 135.1 | 122.3 | 110.0 | 93.0 | 88.0 | ||||||||||||||
Capital
expenditures
|
170.6 | 165.3 | 141.8 | 113.8 | 107.8 | |||||||||||||||
Earnings
(loss) per share attributable to Brink’s common
shareholders
|
||||||||||||||||||||
Basic:
|
||||||||||||||||||||
Continuing
operations
|
$ | 4.14 | 2.85 | 1.68 | 1.06 | (0.06 | ) | |||||||||||||
Discontinued operations
(b)
|
0.10 | 1.11 | 1.27 | 10.69 | 2.69 | |||||||||||||||
Cumulative effect of change in
accounting principle (c)
|
- | - | - | - | (0.10 | ) | ||||||||||||||
Net income
|
$ | 4.23 | 3.96 | 2.95 | 11.75 | 2.53 | ||||||||||||||
Diluted:
|
||||||||||||||||||||
Continuing
operations
|
$ | 4.11 | 2.82 | 1.67 | 1.05 | (0.06 | ) | |||||||||||||
Discontinued operations
(b)
|
0.10 | 1.10 | 1.25 | 10.58 | 2.69 | |||||||||||||||
Cumulative effect of change in
accounting principle (c)
|
- | - | - | - | (0.10 | ) | ||||||||||||||
Net income
|
$ | 4.21 | 3.93 | 2.92 | 11.64 | 2.53 | ||||||||||||||
Cash
dividends
|
$ | 0.4000 | 0.4000 | 0.3625 | 0.2125 | 0.1000 | ||||||||||||||
Weighted-average
Shares
|
||||||||||||||||||||
Basic
|
47.2 | 46.3 | 46.5 | 50.0 | 56.3 | |||||||||||||||
Diluted
|
47.5 | 46.7 | 47.0 | 50.5 | 56.3 |
(a)
|
Includes
amounts not allocated to segment
results.
|
(b)
|
Income
from discontinued operations reflects the operations and gains and losses,
if any, on disposal of our former home security, and air freight
businesses, as well as the domestic cash handling operations in the United
Kingdom. Expenses related to postretirement obligations are
recorded as a component of continuing operations after the respective
disposal dates. Adjustments to contingent liabilities are recorded
within discontinued operations.
|
(c)
|
Our
2005 results of operations include a noncash after-tax charge of $5.4
million or $0.10 per diluted share to reflect the cumulative effect of a
change in accounting principle pursuant to the adoption of FIN 47, Accounting for Conditional
Asset Retirement Obligations, which is
now part of FASB ASC Topic 410, Asset
Retirement and Environmental
Obligations.
|
TABLE OF CONTENTS
|
||
Page
|
||
OPERATIONS
|
21
|
|
RESULTS
OF OPERATIONS
|
||
Consolidated
Review
|
23
|
|
Segment
Operating Results
|
26
|
|
Non-segment
Income (Expense)
|
32
|
|
Other
Operating Income (Expense)
|
33
|
|
Nonoperating
Income and Expense
|
34
|
|
Income
Taxes
|
35
|
|
Noncontrolling
Interests
|
36
|
|
Income
from Discontinued Operations
|
37
|
|
Summary
of Selected Results and Outlook
|
38
|
|
Adjusted
Results – Reconciled to Amounts Reported under GAAP
|
39
|
|
Foreign
Operations
|
41
|
|
LIQUIDITY
AND CAPITAL RESOURCES
|
||
Overview
|
42
|
|
Summary
Cash Flow Information
|
42
|
|
Operating
Activities
|
43
|
|
Investing
Activities
|
43
|
|
Financing
Activities
|
44
|
|
Capitalization
|
45
|
|
Off
Balance Sheet Arrangements
|
47
|
|
Contractual
Obligations
|
48
|
|
Contingent
Matters
|
51
|
|
APPLICATION
OF CRITICAL ACCOUNTING POLICIES
|
||
Deferred
Tax Asset Valuation Allowance
|
52
|
|
Goodwill,
Other Intangible Assets and Property and Equipment
Valuations
|
53
|
|
Retirement
and Postemployment Benefit Obligations
|
54
|
|
Foreign
Currency Translation
|
59
|
|
RECENT
ACCOUNTING PRONOUNCEMENTS
|
60
|
·
|
brand
name recognition
|
·
|
reputation
for a high level of service and
security
|
·
|
risk
management and logistics expertise
|
·
|
global
infrastructure and customer base
|
·
|
proprietary
cash processing and information
systems
|
·
|
proven
operational excellence
|
·
|
high-quality
insurance coverage and general financial
strength
|
·
|
Return
on capital
|
·
|
Revenue
and earnings growth
|
·
|
Cash
flow generation
|
·
|
Non-segment
Income (Expense) on page 32
|
·
|
Liquidity
and Capital Resources – Contractual Obligations – on page
48
|
·
|
Application
of Critical Accounting Policies – on page
52
|
·
|
Notes
3, 17 and 21 to the consolidated financial statements, which begin on page
83
|
GAAP
|
%
Change
|
Adjusted
(a)
|
%
Change
|
|||||||||||||||||||||||||||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2007
|
2009
|
2008
|
2009
|
2008
|
2007
|
2009
|
2008
|
||||||||||||||||||||||||||||||
(In
millions, except per share amounts)
|
||||||||||||||||||||||||||||||||||||||||
Revenues
|
$ | 3,135 | 3,164 | 2,735 | (1 | ) | 16 | $ | 2,897 | 2,990 | 2,616 | (3 | ) | 14 | ||||||||||||||||||||||||||
Segment
operating profit:
|
||||||||||||||||||||||||||||||||||||||||
International
|
157 | 215 | 153 | (27 | ) | 41 | 118 | 166 | 126 | (29 | ) | 32 | ||||||||||||||||||||||||||||
North America
|
57 | 57 | 70 | (1 | ) | (19 | ) | 57 | 57 | 70 | (1 | ) | (19 | ) | ||||||||||||||||||||||||||
Total segment operating profit
(b)
|
213 | 272 | 223 | (22 | ) | 22 | 175 | 223 | 196 | (22 | ) | 14 | ||||||||||||||||||||||||||||
Non-segment
operating profit (c)
|
(47 | ) | (43 | ) | (62 | ) | 7 | (30 | ) | (38 | ) | (43 | ) | (62 | ) | (12 | ) | (30 | ) | |||||||||||||||||||||
Total operating
profit
|
167 | 229 | 161 | (27 | ) | 42 | 137 | 180 | 134 | (24 | ) | 34 | ||||||||||||||||||||||||||||
Income
from continuing operations (d)
|
196 | 132 | 78 | 48 | 68 | 66 | 107 | 66 | (38 | ) | 62 | |||||||||||||||||||||||||||||
Net
income (d)
|
200 | 183 | 137 | 9 | 34 | 71 | 158 | 125 | (55 | ) | 27 | |||||||||||||||||||||||||||||
Diluted
earnings per share:
|
||||||||||||||||||||||||||||||||||||||||
Continuing
operations
|
$ | 4.11 | 2.82 | 1.67 | 46 | 69 | $ | 1.39 | 2.29 | 1.40 | (39 | ) | 64 | |||||||||||||||||||||||||||
Net income
|
4.21 | 3.93 | 2.92 | 7 | 35 | 1.48 | 3.39 | 2.66 | (56 | ) | 27 |
(a)
|
Adjusted
financial information is contained on pages 39 - 40, including
reconciliation to amounts reported under generally accepted accounting
principles in the United States (“GAAP”). Adjustments relate to
the exchange rate used to translate operating results in Venezuela and
transaction losses on repatriated cash, an exclusion of an
acquisition-related gain, and exclusion of a release of a U.S. tax
valuation allowance.
|
(b)
|
Total
Segment operating profit is a non-GAAP measure. This table
reconciles the measure to operating profit, a GAAP measure. We
believe that our disclosure of total Segment operating profit allows
investors a way to assess the total operating performance of Brink’s
excluding Non-segment income (expenses). We provide our outlook of
total Segment operating profit and Non-segment income (expense) for 2010
on page 38.
|
(c)
|
Non-segment
includes expenses related to corporate and former operations and other
amounts not allocated to segment operating
profit.
|
(d)
|
Amounts
reported in this table are attributable to Brink’s and exclude earnings
related to noncontrolling ownership interests in consolidated
subsidiaries.
|
·
|
translating
our Venezuelan results at a different rate of
exchange,
|
·
|
currency
exchange transaction losses on the repatriation of Venezuelan
dividends,
|
·
|
a
gain recognized upon acquiring a controlling interest in an operation in
India, and
|
·
|
a
release of a U.S. deferred tax asset valuation
allowance.
|
·
|
Our
revenues increased 16% in 2008 compared to 2007 mainly due to higher
volumes, including $51 million in incremental revenues from the conversion
project in Venezuela.
|
·
|
Favorable
changes in currency exchange rates increased revenues by 4% ($98 million)
in 2008 over 2007.
|
·
|
Our
revenues increased 14% in 2008 compared to 2007 mainly due to higher
volumes, including $25 million in incremental revenues from the conversion
project in Venezuela.
|
·
|
Favorable
changes in currency exchange rates increased our revenues by 4% ($107
million) in 2008 over 2007.
|
·
|
the
inclusion in 2008 results of profits from the monetary conversion project
in Venezuela that was completed in
2008,
|
·
|
a
$12 million increase in restructuring and severance costs, primarily in
Europe,
|
·
|
$6
million in accounting corrections in Belgium,
and
|
·
|
higher
non-segment expenses.
|
·
|
the
inclusion in 2008 results of profits from the monetary conversion project
in Venezuela that was completed in
2008,
|
·
|
a
$12 million increase in restructuring and severance costs, primarily in
Europe, and
|
·
|
$6
million in accounting corrections in
Belgium,
|
Years
Ended
|
Percentage
|
|||||||||||||||||||||||||||
December
31,
|
Change
|
|||||||||||||||||||||||||||
Organic
|
Acquisitions
/
|
Currency
|
||||||||||||||||||||||||||
(In
millions)
|
2008
|
Change
|
Dispositions
|
Change
(a)
|
2009
|
Total
|
Organic
|
|||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
EMEA
|
$ | 1,358.9 | (21.8 | ) | 3.3 | (82.9 | ) | 1,257.5 | (7 | ) | (2 | ) | ||||||||||||||||
Latin America
|
800.6 | 74.7 | 80.4 | (51.0 | ) | 904.7 | 13 | 9 | ||||||||||||||||||||
Asia Pacific
|
71.8 | (3.5 | ) | 11.6 | (1.2 | ) | 78.7 | 10 | (5 | ) | ||||||||||||||||||
International
|
2,231.3 | 49.4 | 95.3 | (135.1 | ) | 2,240.9 | - | 2 | ||||||||||||||||||||
North America
|
932.2 | (28.3 | ) | 1.5 | (11.3 | ) | 894.1 | (4 | ) | (3 | ) | |||||||||||||||||
Revenues
|
$ | 3,163.5 | 21.1 | 96.8 | (146.4 | ) | 3,135.0 | (1 | ) | 1 | ||||||||||||||||||
Operating
profit:
|
||||||||||||||||||||||||||||
International
|
$ | 215.0 | (59.5 | ) | 8.8 | (7.5 | ) | 156.8 | (27 | ) | (28 | ) | ||||||||||||||||
North America
|
56.9 | - | 0.1 | (0.4 | ) | 56.6 | (1 | ) | - | |||||||||||||||||||
Segment operating
profit
|
$ | 271.9 | (59.5 | ) | 8.9 | (7.9 | ) | 213.4 | (22 | ) | (22 | ) | ||||||||||||||||
Segment
operating margin:
|
||||||||||||||||||||||||||||
International
|
9.6 | % | 7.0 | % | ||||||||||||||||||||||||
North America
|
6.1 | % | 6.3 | % | ||||||||||||||||||||||||
Segment operating
margin
|
8.6 | % | 6.8 | % |
Years
Ended
|
Percentage
|
|||||||||||||||||||||||||||
December
31,
|
Change
|
|||||||||||||||||||||||||||
Organic
|
Acquisitions
/
|
Currency
|
||||||||||||||||||||||||||
(In
millions)
|
2008
|
Change
|
Dispositions
|
Change
(a)
|
2009
|
Total
|
Organic
|
|||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
EMEA
|
$ | 1,358.9 | (21.8 | ) | 3.3 | (82.9 | ) | 1,257.5 | (7 | ) | (2 | ) | ||||||||||||||||
Latin America
|
627.2 | 57.7 | 80.4 | (98.5 | ) | 666.8 | 6 | 9 | ||||||||||||||||||||
Asia Pacific
|
71.8 | (3.5 | ) | 11.6 | (1.2 | ) | 78.7 | 10 | (5 | ) | ||||||||||||||||||
International
|
2,057.9 | 32.4 | 95.3 | (182.6 | ) | 2,003.0 | (3 | ) | 2 | |||||||||||||||||||
North America
|
932.2 | (28.3 | ) | 1.5 | (11.3 | ) | 894.1 | (4 | ) | (3 | ) | |||||||||||||||||
Revenues
|
$ | 2,990.1 | 4.1 | 96.8 | (193.9 | ) | 2,897.1 | (3 | ) | - | ||||||||||||||||||
Operating
profit:
|
||||||||||||||||||||||||||||
International
|
$ | 166.2 | (45.5 | ) | 8.8 | (11.2 | ) | 118.3 | (29 | ) | (27 | ) | ||||||||||||||||
North America
|
56.9 | - | 0.1 | (0.4 | ) | 56.6 | (1 | ) | - | |||||||||||||||||||
Segment operating
profit
|
$ | 223.1 | (45.5 | ) | 8.9 | (11.6 | ) | 174.9 | (22 | ) | (20 | ) | ||||||||||||||||
Segment
operating margin:
|
||||||||||||||||||||||||||||
International
|
8.1 | % | 5.9 | % | ||||||||||||||||||||||||
North America
|
6.1 | % | 6.3 | % | ||||||||||||||||||||||||
Segment operating
margin
|
7.5 | % | 6.0 | % |
|
(a)
|
The
“Currency Change” amount in the table is the summation of the monthly
currency changes. The monthly currency change is equal to the
Revenue or Operating Profit for the month in local currency, on a
country-by-country basis, multiplied by the difference in rates used to
translate the current period amounts to U.S. dollars versus the
translation rates used in the year-ago
month.
|
|
(b)
|
Adjusted
financial information is contained on pages 39 - 40, including
reconciliation to amounts reported under generally accepted accounting
principles in the United States (“GAAP”). Adjustments relate to
the exchange rate used to translate operating results in Venezuela and
transaction losses on repatriated cash, an exclusion of an
acquisition-related gain, and exclusion of a release of a U.S. tax
valuation allowance.
|
·
|
the
inclusion in 2008 results of profits from the monetary conversion project
in Venezuela that was completed in
2008,
|
·
|
a
$12 million increase in restructuring and severance costs, primarily in
Europe, and
|
·
|
$6
million in accounting corrections in
Belgium.
|
·
|
the
inclusion in 2008 results of profits from the monetary conversion project
in Venezuela that was completed in
2008,
|
·
|
a
$12 million increase in restructuring and severance costs, primarily in
Europe, and
|
·
|
$6
million in accounting corrections in
Belgium.
|
·
|
revenues
in EMEA were 7% lower,
|
·
|
revenues
in Latin America were 13% higher,
and
|
·
|
revenues
in Asia Pacific were 10% higher.
|
·
|
revenues
in EMEA were 7% lower,
|
·
|
revenues
in Latin America were 6% higher,
and
|
·
|
revenues
in Asia Pacific were 10% higher.
|
·
|
unfavorable
currency impact ($83 million),
|
·
|
a
loss of guarding contracts in France ($34 million),
and
|
·
|
a
sale of certain guarding operations in
France
|
·
|
the
loss of guarding contracts in France ($34 million),
and
|
·
|
continued
pricing and volume pressure throughout
region.
|
·
|
higher
severance costs (up $10 million) related to contract losses and turnaround
efforts,
|
·
|
accounting
corrections in Belgium ($6 million),
and
|
·
|
Global
Services being down across the region on weak diamond and jewelry
demand.
|
·
|
higher
CIT volume,
|
·
|
inflation-based
price increases, and
|
·
|
an
acquisition in Brazil ($74
million).
|
·
|
higher
CIT volume,
|
·
|
inflation-based
price increases, and
|
·
|
an
acquisition in Brazil ($74
million).
|
Years
Ended
|
Percentage
|
|||||||||||||||||||||||||||
December
31,
|
Change
|
|||||||||||||||||||||||||||
(In
millions)
|
2007
|
Organic
Change
|
Acquisitions
/ Dispositions
|
Currency
Change (a)
|
2008
|
As
Reported
|
Organic
|
|||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
EMEA
|
$ | 1,191.5 | 78.4 | 11.7 | 77.3 | 1,358.9 | 14 | 7 | ||||||||||||||||||||
Latin America
|
594.2 | 186.4 | 1.0 | 19.0 | 800.6 | 35 | 31 | |||||||||||||||||||||
Asia Pacific
|
62.6 | 8.0 | - | 1.2 | 71.8 | 15 | 13 | |||||||||||||||||||||
International
|
1,848.3 | 272.8 | 12.7 | 97.5 | 2,231.3 | 21 | 15 | |||||||||||||||||||||
North America
|
886.3 | 40.5 | 4.6 | 0.8 | 932.2 | 5 | 5 | |||||||||||||||||||||
Revenues
|
$ | 2,734.6 | 313.3 | 17.3 | 98.3 | 3,163.5 | 16 | 11 | ||||||||||||||||||||
Operating
profit:
|
||||||||||||||||||||||||||||
International
|
$ | 152.9 | 57.2 | 0.8 | 4.1 | 215.0 | 41 | 37 | ||||||||||||||||||||
North America
|
70.4 | (13.9 | ) | 0.3 | 0.1 | 56.9 | (19 | ) | (20 | ) | ||||||||||||||||||
Segment operating
profit
|
$ | 223.3 | 43.3 | 1.1 | 4.2 | 271.9 | 22 | 19 | ||||||||||||||||||||
Segment
operating margin:
|
||||||||||||||||||||||||||||
International
|
8.3 | % | 9.6 | % | ||||||||||||||||||||||||
North America
|
7.9 | % | 6.1 | % | ||||||||||||||||||||||||
Segment operating
margin
|
8.2 | % | 8.6 | % |
Years
Ended
|
Percentage
|
|||||||||||||||||||||||||||
December
31,
|
Change
|
|||||||||||||||||||||||||||
Organic
|
Acquisitions
/
|
Currency
|
||||||||||||||||||||||||||
(In
millions)
|
2007
|
Change
|
Dispositions
|
Change
(a)
|
2008
|
Total
|
Organic
|
|||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
EMEA
|
$ | 1,191.5 | 78.4 | 11.7 | 77.3 | 1,358.9 | 14 | 7 | ||||||||||||||||||||
Latin America
|
475.1 | 123.0 | 1.0 | 28.1 | 627.2 | 32 | 26 | |||||||||||||||||||||
Asia Pacific
|
62.6 | 8.0 | - | 1.2 | 71.8 | 15 | 13 | |||||||||||||||||||||
International
|
1,729.2 | 209.4 | 12.7 | 106.6 | 2,057.9 | 19 | 12 | |||||||||||||||||||||
North America
|
886.3 | 40.5 | 4.6 | 0.8 | 932.2 | 5 | 5 | |||||||||||||||||||||
Revenues
|
$ | 2,615.5 | 249.9 | 17.3 | 107.4 | 2,990.1 | 14 | 10 | ||||||||||||||||||||
Operating
profit:
|
||||||||||||||||||||||||||||
International
|
$ | 125.7 | 35.7 | 0.8 | 4.0 | 166.2 | 32 | 28 | ||||||||||||||||||||
North America
|
70.4 | (13.9 | ) | 0.3 | 0.1 | 56.9 | (19 | ) | (20 | ) | ||||||||||||||||||
Segment operating
profit
|
$ | 196.1 | 21.8 | 1.1 | 4.1 | 223.1 | 14 | 11 | ||||||||||||||||||||
Segment
operating margin:
|
||||||||||||||||||||||||||||
International
|
7.3 | % | 8.1 | % | ||||||||||||||||||||||||
North America
|
7.9 | % | 6.1 | % | ||||||||||||||||||||||||
Segment operating
margin
|
7.5 | % | 7.5 | % |
|
(a)
|
The
“Currency Change” amount in the table is the summation of the monthly
currency changes. The monthly currency change is equal to the
Revenue or Operating Profit for the month in local currency, on a
country-by-country basis, multiplied by the difference in rates used to
translate the current period amounts to U.S. dollars versus the
translation rates used in the year-ago
month.
|
|
(b)
|
Adjusted
financial information is contained on pages 39 - 40, including
reconciliation to amounts reported under generally accepted accounting
principles in the United States (“GAAP”). Adjustments relate to
the exchange rate used to translate operating results in Venezuela and
transaction losses on repatriated cash, an exclusion of an
acquisition-related gain, and exclusion of a release of a U.S. tax
valuation allowance.
|
·
|
revenues
in EMEA were 14% higher,
|
·
|
revenues
in Latin America were 35% higher,
and
|
·
|
revenues
in Asia Pacific were 15% higher.
|
·
|
revenues
in EMEA were 14% higher,
|
·
|
revenues
in Latin America were 32% higher,
and
|
·
|
revenues
in Asia Pacific were 15% higher.
|
·
|
favorable
currency impact ($77 million), and
|
·
|
organic
revenue growth of 7%.
|
·
|
favorable
changes in currency exchange rates,
|
·
|
improved
operating results in some countries despite higher labor costs and the
overall economic slowdown caused by the global financial
crisis,
|
·
|
strong
performance of Global Services, and
|
·
|
lower
security costs,
|
·
|
decreased
volumes and
|
·
|
recessionary
and competitive pricing pressures.
|
·
|
higher
volumes across the region (including significant volumes from the
conversion project),
|
·
|
normal
inflationary price increases, and
|
·
|
favorable
changes in currency exchange rates.
|
·
|
higher
volumes across the region (including significant volumes from the
conversion project),
|
·
|
normal
inflationary price increases, and
|
·
|
favorable
changes in currency exchange rates.
|
·
|
higher
spending on labor, fuel, selling, general and administrative expenses and
employment-related legal settlement
expenses,
|
·
|
lower
expense related to U.S. retirement plans
and
|
·
|
a
gain related to reductions in retirement benefit obligations in
Canada.
|
|
2009
|
2009
|
2008
|
2007
|
|||||||||||||
(In
millions)
|
GAAP
|
Adjusted
|
GAAP
and Adjusted
|
GAAP
and Adjusted
|
|||||||||||||
Corporate
and former operations:
|
|||||||||||||||||
General
and administrative
|
$ | (38.1 | ) | (38.1 | ) | (48.8 | ) | (49.7 | ) | ||||||||
Strategic
reviews and proxy matters
|
- | - | (4.8 | ) | (3.6 | ) | |||||||||||
Retirement
costs (primarily former operations)
|
(19.3 | ) | (19.3 | ) | 2.7 | (11.2 | ) | ||||||||||
Subtotal
|
(57.4 | ) | (57.4 | ) | (50.9 | ) | (64.5 | ) | |||||||||
Other
amounts not allocated to segments:
|
|||||||||||||||||
Currency
exchange transaction gains (losses)
|
(22.3 | ) |
(b)
|
0.2 | (8.4 | ) | 0.5 | ||||||||||
Gains
on acquiring control of equity method affiliates
|
14.9 |
(c)
|
1.0 | - | - | ||||||||||||
Gains
on sale of property and other assets
|
9.6 | 9.6 | 13.1 | 0.4 | |||||||||||||
Royalty
income:
|
|||||||||||||||||
Brand licensing fees from BHS
|
6.8 | 6.8 | 1.1 | - | |||||||||||||
Other
|
1.8 | 1.8 | 1.7 | 1.3 | |||||||||||||
Subtotal
|
10.8 | 19.4 | 7.5 | 2.2 | |||||||||||||
Non-segment
income (expense)
|
$ | (46.6 | ) | (38.0 | ) | (43.4 | ) | (62.3 | ) |
(a)
|
Includes
corporate, former operations and other amounts not allocated to segment
results.
|
(b)
|
Includes
$22.5 million in the fourth quarter of 2009 related to Venezuela
repatriation of dividends at the parallel
rate.
|
(c)
|
Relates
primarily to acquisition of controlling interest of a CIT operation in
India in the third quarter of 2009.
|
·
|
higher
retirement expenses ($22 million);
|
·
|
higher
foreign exchange losses ($14 million), including a $23 million
repatriation charge;
|
·
|
lower
gains on asset sales ($4 million);
|
·
|
lower
general and administrative expense ($11 million), including lower bonus
accruals ($6 million);
|
·
|
a
gain on an acquisition in India ($14
million);
|
·
|
higher
royalty income ($6 million); and
|
·
|
lower
costs for strategic reviews and proxy matters ($5
million).
|
·
|
lower
general and administrative expense ($11 million), including lower bonus
accruals ($6 million);
|
·
|
lower
foreign exchange losses ($9
million);
|
·
|
higher
royalty income ($6 million); and
|
·
|
lower
costs for strategic reviews and proxy matters ($5
million)
|
·
|
higher
retirement expenses ($22 million);
and
|
·
|
lower
gains on asset sales ($4 million).
|
·
|
lower
retirement plan costs of $14 million
and
|
·
|
higher
gains on the sale of certain assets of our former coal operations (up $13
million),
|
·
|
higher
foreign currency transaction losses ($9
million).
|
Years
Ended December 31,
|
%
change
|
|||||||||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
2009
|
2008
|
|||||||||||||||
Foreign
currency transaction losses
|
$ | (41.4 | ) | (18.1 | ) | (9.5 | ) | 129 | 91 | |||||||||||
Gain
on acquiring control of an equity method affiliate
|
14.9 | - | - |
NM
|
- | |||||||||||||||
Gains
on sales of property and other assets
|
9.4 | 13.1 | 4.6 | (28 | ) | 185 | ||||||||||||||
Royalty
income
|
8.6 | 2.8 | 1.3 | 200 | + | 115 | ||||||||||||||
Share
in earnings of equity affiliates
|
4.5 | 5.0 | 3.3 | (10 | ) | 52 | ||||||||||||||
Impairment
losses
|
(2.7 | ) | (1.9 | ) | (2.5 | ) | 42 | (24 | ) | |||||||||||
Other
|
3.2 | 3.7 | 3.9 | (14 | ) | (5 | ) | |||||||||||||
Other
operating income (expense)
|
$ | (3.5 | ) | 4.6 | 1.1 |
NM
|
200 | + |
·
|
higher
foreign currency transaction losses, including the $23 million loss from
repatriating 76 million bolivar fuertes held in Venezuela at the parallel
exchange rate;
|
·
|
lower
gains on asset sales of $4 million;
|
·
|
gains
that total $15 million primarily related to the acquisition of a
controlling interest in India; and
|
·
|
royalty
income from the licensing agreement with BHS was $6 million
higher.
|
·
|
gains
on sales of property and other assets, including a sale of coal assets to
Massey Energy Company in 2008, that were in total $9 million
higher;
|
·
|
royalty
income mainly attributable to royalties from BHS was $2 million
higher;
|
·
|
equity
earnings were $2 million higher;
|
|
partially
offset by
|
·
|
higher
foreign currency transaction losses of $9 million in 2008, primarily
related to the remeasurement of foreign currency-denominated intercompany
dividends.
|
Years
Ended December 31,
|
%
change
|
|||||||||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
2009
|
2008
|
|||||||||||||||
Interest
expense
|
$ | 11.3 | 12.0 | 10.8 | (6 | ) | 11 |
Years
Ended December 31,
|
%
change
|
|||||||||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
2009
|
2008
|
|||||||||||||||
Interest
income
|
$ | 10.8 | 15.0 | 8.7 | (28 | ) | 72 | |||||||||||||
Other-than-temporary
impairment of marketable securities
|
- | (7.1 | ) | - | (100 | ) |
NM
|
|||||||||||||
Other,
net
|
- | 0.2 | 1.8 | (100 | ) | (89 | ) | |||||||||||||
Total
|
$ | 10.8 | 8.1 | 10.5 | 33 | (23 | ) |
Years
Ended December 31,
|
||||||||||||
(In
percentages)
|
2009
|
2008
|
2007
|
|||||||||
U.S.
federal tax rate
|
35.0 | % | 35.0 | % | 35.0 | % | ||||||
Increases
(reductions) in taxes due to:
|
||||||||||||
Adjustments to valuation
allowances
|
(68.2 | ) | (6.1 | ) | 4.0 | |||||||
Nondeductible repatriation
charge
|
4.7 | - | - | |||||||||
Nontaxable
gain on India acquisition
|
(2.9 | ) | - | - | ||||||||
Other
|
(5.3 | ) | (5.3 | ) | (2.0 | ) | ||||||
Income
tax rate on continuing operations
|
(36.7 | %) | 23.6 | % | 37.0 | % |
Years
Ended December 31,
|
||||||||||||
(In
percentages)
|
2009
|
2008
|
2007
|
|||||||||
U.S.
federal tax rate
|
35.0 | % | 35.0 | % | 35.0 | % | ||||||
Increases
(reductions) in taxes due to:
|
||||||||||||
Adjustments to valuation
allowances
|
3.4 | (7.8 | ) | 4.9 | ||||||||
Other
|
(1.7 | ) | (2.4 | ) | 0.1 | |||||||
Income
tax rate on Adjusted continuing operations
|
36.7 | % | 24.8 | % | 40.0 | % |
(a)
|
See
pages 39-40 for a reconciliation of Adjusted results to
GAAP.
|
·
|
changes
in judgment about the need for valuation
allowances
|
·
|
changes
in the geographical mix of earnings
|
·
|
the
nondeductible Venezuela repatriation
charge
|
·
|
the
nontaxable acquisition gains
|
·
|
timing
of benefit recognition for uncertain tax
positions
|
·
|
state
income taxes
|
Years
Ended December 31,
|
%
change
|
|||||||||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
2009
|
2008
|
|||||||||||||||
Net
income attributable to noncontrolling interests
|
$ | 31.7 | 39.8 | 22.8 | (20 | ) | 75 |
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
BHS:
|
||||||||||||
Income from operations before tax
(a)
|
$ | - | 105.4 | 112.9 | ||||||||
Expense associated with the
spin-off
|
- | (13.0 | ) | - | ||||||||
United
Kingdom domestic cash handling operations:
|
||||||||||||
Gain on sale
|
- | - | 1.5 | |||||||||
Loss from operations before tax
(b)
|
- | - | (13.9 | ) | ||||||||
Adjustments
to contingencies of former operations:
|
||||||||||||
Gain from FBLET refunds (see note
21)
|
19.7 | - | - | |||||||||
BAX Global indemnification (see
note 21)
|
(13.2 | ) | - | - | ||||||||
Other
|
0.3 | 4.9 | (0.1 | ) | ||||||||
Income
from discontinued operations before income taxes
|
6.8 | 97.3 | 100.4 | |||||||||
Provision
for income taxes
|
2.3 | 45.8 | 41.5 | |||||||||
Income
from discontinued operations
|
$ | 4.5 | 51.5 | 58.9 |
(a)
|
Revenues
of BHS were $442.4 million in 2008 (partial year) and $484.4 million in
2007.
|
(b)
|
Revenues
of the United Kingdom domestic cash handling operations were $28.9 million
in 2007 (partial year).
|
2007
|
2008
|
2009
|
2010
|
||||||||||||||
(In
millions)
|
Actual
|
Actual
|
Actual
|
Outlook
|
Reference
|
||||||||||||
Revenues
:
|
|||||||||||||||||
GAAP
|
$ | 2,735 | 3,164 | 3,135 | * | ||||||||||||
Adjusted
|
2,616 | 2,990 | 2,897 | * | |||||||||||||
Organic
Revenue Growth:
|
|||||||||||||||||
GAAP
|
* | 11 | % | 1 | % | * | |||||||||||
Adjusted
|
* | 10 | % | - |
Low-to-mid
single-digit %
|
Page
28
|
|||||||||||
Segment
Operating Profit:
|
|||||||||||||||||
GAAP
|
$ | 223 | 272 | 213 | * | ||||||||||||
Adjusted
|
196 | 223 | 175 | * | |||||||||||||
Segment
Operating Margin:
|
|||||||||||||||||
GAAP
|
8.2 | % | 8.6 | % | 6.8 | % | 7% - 7.5 | % |
Page
28
|
||||||||
Adjusted
|
7.5 | % | 7.5 | % | 6.0 | % | 7% - 7.5 | % | |||||||||
Non-Segment
– GAAP:
|
|||||||||||||||||
General and
administrative
|
$ | 50 | 49 | 38 | 41 | ||||||||||||
Retirement plans
|
11 | (3 | ) | 19 | 20 | ||||||||||||
Royalty income
|
(1 | ) | (3 | ) | (9 | ) | (5 | ) | |||||||||
Other
|
2 | - | (1 | ) | - | ||||||||||||
Non-Segment –
GAAP
|
$ | 62 | 43 | 47 | 56 |
Page
32
|
|||||||||||
Effective
income tax rate:
|
|||||||||||||||||
GAAP
|
37 | % | 24 | % | (37 | %) | 36% - 39 | %** | |||||||||
Adjusted
|
40 | % | 25 | % | 37 | % | 36% - 39 | %** |
Page
35
|
||||||||
Net
income attributable to
|
|||||||||||||||||
noncontrolling
interests:
|
|||||||||||||||||
GAAP
|
$ | 23 | 40 | 32 | * | ||||||||||||
Adjusted
|
15 | 24 | 19 | * | |||||||||||||
Capital
expenditures
|
$ | 142 | 165 | 171 | 180 - 200 |
Page
43
|
|||||||||||
Depreciation
and amortization
|
$ | 110 | 122 | 135 | 145 - 155 |
Page
43
|
a)
|
reflect
the impact of reporting results from Venezuela at the less favorable
parallel market exchange rate,
|
b)
|
exclude
transaction losses on repatriated cash from
Venezuela,
|
c)
|
exclude
an acquisition gain in India, and
|
d)
|
exclude
the tax valuation allowance
release.
|
a.
|
Change
from official rate to parallel rate translation in
Venezuela
|
i.
|
Reduce
segment operating income - International to reflect the operating results
had they been translated using the parallel rate in effect at the
time. Results from Venezuela in 2007, 2008 and most of 2009
were translated at the official
rate.
|
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Revenues
|
$ | (237.9 | ) | (173.4 | ) | (119.1 | ) | |||||
Operating
profit
|
(43.0 | ) | (48.8 | ) | (27.2 | ) |
ii.
|
Increase
segment operating income – International by $4.5 million in
2009. The adjustment reverses certain currency exchange losses
related to increases in cash held in U.S. dollars by the Venezuelan
subsidiaries.
|
b.
|
Venezuela currency
loss. Decrease non-segment expense by $22.5 million for
the loss that was recognized in 2009 related to the repatriation of cash
from Venezuela.
|
c.
|
Acquisition
gain. Decrease other operating income – non-segment by
$13.9 million for the gain recorded in 2009 related to an acquisition of a
controlling interest in an Indian
subsidiary.
|
d.
|
Tax
benefit. Decrease income tax benefit by $117.8 million
in 2009 for the release of a valuation allowance related to deferred tax
assets in the U.S.
|
2009
|
||||||||||||||||||||||||
Reported
|
Change
to
|
Venezuela
|
India
|
|||||||||||||||||||||
(In
millions) (except for per share amounts)
|
GAAP
Basis
|
Parallel
Rate (a)
|
Currency
Loss (b)
|
Acquisition
Gain (c)
|
Tax
Benefit (d)
|
Adjusted
Basis
|
||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
EMEA
|
$ | 1,257.5 | - | - | - | - | 1,257.5 | |||||||||||||||||
Latin America
|
904.7 | (237.9 | ) | - | - | - | 666.8 | |||||||||||||||||
Asia Pacific
|
78.7 | - | - | - | - | 78.7 | ||||||||||||||||||
International
|
2,240.9 | (237.9 | ) | - | - | - | 2,003.0 | |||||||||||||||||
North America
|
894.1 | - | - | - | - | 894.1 | ||||||||||||||||||
Revenues
|
$ | 3,135.0 | (237.9 | ) | - | - | - | 2,897.1 | ||||||||||||||||
Operating
profit:
|
||||||||||||||||||||||||
International
|
$ | 156.8 | (38.5 | ) | - | - | - | 118.3 | ||||||||||||||||
North America
|
56.6 | - | - | - | - | 56.6 | ||||||||||||||||||
Segment operating
profit
|
213.4 | (38.5 | ) | - | - | - | 174.9 | |||||||||||||||||
Non-segment
|
(46.6 | ) | - | 22.5 | (13.9 | ) | - | (38.0 | ) | |||||||||||||||
Operating
profit
|
$ | 166.8 | (38.5 | ) | 22.5 | (13.9 | ) | - | 136.9 | |||||||||||||||
Income from continuing
operations
|
$ | 227.4 | (33.5 | ) | 22.5 | (13.9 | ) | (117.8 | ) | 84.7 | ||||||||||||||
Net income attributable to
Brink’s
|
$ | 200.2 | (20.5 | ) | 22.5 | (13.9 | ) | (117.8 | ) | 70.5 | ||||||||||||||
Amounts
attributable to Brink’s:
|
||||||||||||||||||||||||
Income
from continuing operations
|
$ | 195.7 | (20.5 | ) | 22.5 | (13.9 | ) | (117.8 | ) | 66.0 | ||||||||||||||
Diluted
earnings per share – continuing operations
|
4.11 | (0.42 | ) | 0.47 | (0.29 | ) | (2.48 | ) | 1.39 |
2008
|
2007
|
|||||||||||||||||||||||
(In
millions) (except for per share amounts)
|
Reported
|
Change
to
|
Reported
|
Change
to
|
||||||||||||||||||||
GAAP
Basis
|
Parallel
Rate (a)
|
Adjusted
Basis
|
GAAP
Basis
|
Parallel
Rate (a)
|
Adjusted
Basis
|
|||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
EMEA
|
$ | 1,358.9 | - | 1,358.9 | 1,191.5 | - | 1,191.5 | |||||||||||||||||
Latin America
|
800.6 | (173.4 | ) | 627.2 | 594.2 | (119.1 | ) | 475.1 | ||||||||||||||||
Asia Pacific
|
71.8 | - | 71.8 | 62.6 | - | 62.6 | ||||||||||||||||||
International
|
2,231.3 | (173.4 | ) | 2,057.9 | 1,848.3 | (119.1 | ) | 1,729.2 | ||||||||||||||||
North America
|
932.2 | - | 932.2 | 886.3 | - | 886.3 | ||||||||||||||||||
Revenues
|
$ | 3,163.5 | (173.4 | ) | 2,990.1 | 2,734.6 | (119.1 | ) | 2,615.5 | |||||||||||||||
Operating
profit:
|
||||||||||||||||||||||||
International
|
$ | 215.0 | (48.8 | ) | 166.2 | 152.9 | (27.2 | ) | 125.7 | |||||||||||||||
North America
|
56.9 | - | 56.9 | 70.4 | - | 70.4 | ||||||||||||||||||
Segment operating
profit
|
271.9 | (48.8 | ) | 223.1 | 223.3 | (27.2 | ) | 196.1 | ||||||||||||||||
Non-segment
|
(43.4 | ) | - | (43.4 | ) | (62.3 | ) | - | (62.3 | ) | ||||||||||||||
Operating
profit
|
$ | 228.5 | (48.8 | ) | 179.7 | 161.0 | (27.2 | ) | 133.8 | |||||||||||||||
Income from continuing
operations
|
$ | 171.6 | (41.1 | ) | 130.5 | 101.2 | (20.4 | ) | 80.8 | |||||||||||||||
Net income attributable to
Brink’s
|
$ | 183.3 | (25.1 | ) | 158.2 | 137.3 | (12.4 | ) | 124.9 | |||||||||||||||
Amounts
attributable to Brink’s:
|
||||||||||||||||||||||||
Income
from continuing operations
|
$ | 131.8 | (25.1 | ) | 106.7 | 78.4 | (12.4 | ) | 66.0 | |||||||||||||||
Diluted
earnings per share – continuing operations
|
2.82 | (0.53 | ) | 2.29 | 1.67 | (0.27 | ) | 1.40 |
·
|
invest
in the infrastructure of our business (new facilities, cash sorting and
other equipment for our cash logistics operations, armored
trucks, CompuSafe® units, and customer-facing and back-office
information technology) ($478
million),
|
·
|
make
voluntarily contributions to our primary U.S. pension plan ($105 million,
including $92 million in 2009),
|
·
|
acquire
businesses ($100 million including $75 million in BRIC (Brazil, Russia,
India and China) countries in
2009),
|
·
|
repurchase
shares of our stock ($66 million),
and
|
·
|
pay
dividends ($53 million).
|
·
|
We
continue to consider acquisition opportunities in the secure
transportation and cash logistics industry (our Organic Growth Strategy)
and in other security markets (our Adjacent Growth
Strategy). We may use our cash from operations and borrowings
to fund the purchase of these
acquisitions.
|
·
|
We
may be required to contribute cash to our U.S. pension plans in the
future, and the amount of contributions may exceed the amount of cash
provided by our U.S. subsidiaries. We may choose to borrow cash
in the U.S. rather than pay incremental taxes to use cash held by certain
of our international operations to fund these
obligations.
|
·
|
We
began translating cash flows from our Venezuelan operations at the
parallel rate rather than the official rate. As a result, our
cash flow amounts reported for these operations will be lower than the
past, and our consolidated statements of cash flows in the future will
include smaller amounts related to these operations, which will affect the
comparability of these statements in the
future.
|
Years
Ended December 31,
|
$
change
|
|||||||||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
2009
|
2008
|
|||||||||||||||
Cash
flows from operating activities
|
||||||||||||||||||||
Continuing
operations:
|
||||||||||||||||||||
Before contributions to U.S.
pension plan
|
$ | 264.1 | 254.4 | 275.0 | $ | 9.7 | (20.6 | ) | ||||||||||||
Contributions to primary U.S.
pension plan
|
(92.4 | ) | - | (13.0 | ) | (92.4 | ) | 13.0 | ||||||||||||
Subtotal
|
171.7 | 254.4 | 262.0 | (82.7 | ) | (7.6 | ) | |||||||||||||
Discontinued
operations
|
23.5 | 172.7 | 191.7 | (149.2 | ) | (19.0 | ) | |||||||||||||
Operating
activities
|
195.2 | 427.1 | 453.7 | (231.9 | ) | (26.6 | ) | |||||||||||||
Cash
flows from investing activities
|
||||||||||||||||||||
Capital
expenditures
|
(170.6 | ) | (165.3 | ) | (141.8 | ) | (5.3 | ) | (23.5 | ) | ||||||||||
Acquisitions
|
(74.6 | ) | (11.7 | ) | (13.4 | ) | (62.9 | ) | 1.7 | |||||||||||
Cash held by BHS at the spin-off
date
|
- | (50.0 | ) | - | 50.0 | (50.0 | ) | |||||||||||||
Other
|
4.1 | 17.9 | 13.2 | (13.8 | ) | 4.7 | ||||||||||||||
Discontinued
operations
|
- | (150.8 | ) | (175.5 | ) | 150.8 | 24.7 | |||||||||||||
Investing
activities
|
(241.1 | ) | (359.9 | ) | (317.5 | ) | 118.8 | (42.4 | ) | |||||||||||
Cash
flows before financing activities
|
$ | (45.9 | ) | 67.2 | 136.2 | $ | (113.1 | ) | (69.0 | ) |
Outlook
|
Years
Ended December 31,
|
$
change
|
||||||||||||||||||||||
(In
millions)
|
2010
|
2009
|
2008
|
2007
|
2009
|
2008
|
||||||||||||||||||
Capital
expenditures:
|
||||||||||||||||||||||||
International
|
$ | * | 103.1 | 112.7 | 94.8 | $ | (9.6 | ) | 17.9 | |||||||||||||||
North America
|
* | 67.5 | 52.6 | 47.0 | 14.9 | 5.6 | ||||||||||||||||||
Capital
expenditures
|
$ | 180-200 | 170.6 | 165.3 | 141.8 | $ | 5.3 | 23.5 | ||||||||||||||||
Depreciation
and amortization:
|
||||||||||||||||||||||||
International
|
$ | * | 97.5 | 90.5 | 79.7 | $ | 7.0 | 10.8 | ||||||||||||||||
North America
|
* | 37.6 | 31.8 | 30.3 | 5.8 | 1.5 | ||||||||||||||||||
Depreciation
and amortization
|
$ | 145-155 | 135.1 | 122.3 | 110.0 | $ | 12.8 | 12.3 |
*
|
Not
provided.
|
·
|
Capital
expenditures in 2009 were primarily for new cash processing and security
equipment, armored vehicles, and information
technology.
|
·
|
Higher
capital expenditures in our North America segment were partially offset by
a decrease in our International
segment.
|
·
|
The
increase in our North America segment was mainly due to higher
expenditures for armored vehicles, as we elected to buy rather than lease
these vehicles, as well as increased spending on CompuSafe®
units.
|
·
|
The
decrease in Brink’s International capital expenditures from the prior-year
period was due to lower spending overall, as well as the impact of changes
in currency exchange rates.
|
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Cash
provided (used) by financing activities
|
||||||||||||
Borrowings
and repayments:
|
||||||||||||
Short-term debt
|
$ | (0.9 | ) | (4.4 | ) | (23.2 | ) | |||||
Long-term revolving credit
facilities
|
(10.1 | ) | 93.5 | (33.5 | ) | |||||||
Other long-term
debt
|
(11.3 | ) | (12.6 | ) | (5.2 | ) | ||||||
Cash
proceeds from sale-leaseback transactions
|
13.6 | - | - | |||||||||
Repurchase
shares of common stock of Brink’s
|
(6.9 | ) | (56.6 | ) | (2.7 | ) | ||||||
Dividends
attributable to:
|
||||||||||||
Shareholders of
Brink’s
|
(18.4 | ) | (18.2 | ) | (16.5 | ) | ||||||
Noncontrolling interests in
subsidiaries
|
(13.7 | ) | (12.4 | ) | (7.2 | ) | ||||||
Proceeds
and tax benefits related to stock compensation and other
|
1.1 | 11.1 | 18.0 | |||||||||
Discontinued
operations, net
|
- | - | (14.8 | ) | ||||||||
Cash flows from financing
activities
|
$ | (46.6 | ) | 0.4 | (85.1 | ) |
Amount
available
|
||||||||||||||||
under
credit facilities
|
Outstanding
Balance
|
|||||||||||||||
December
31,
|
December
31,
|
|||||||||||||||
(In
millions)
|
2009
|
2009
|
2008
|
$
change (a)
|
||||||||||||
Debt:
|
||||||||||||||||
Multi-currency revolving
facilities
|
$ | 28 | $ | 6.5 | 5.3 | $ | 1.2 | |||||||||
Revolving
Facility
|
302 | 98.0 | 106.8 | (8.8 | ) | |||||||||||
Letter of Credit
Facility
|
9 | - | - | - | ||||||||||||
Dominion Terminal Associates
bonds
|
- | 43.2 | 43.2 | - | ||||||||||||
Capital leases
|
- | 32.8 | 18.1 | 14.7 | ||||||||||||
Other
|
- | 15.1 | 15.2 | (0.1 | ) | |||||||||||
Debt
|
$ | 339 | $ | 195.6 | 188.6 | $ | 7.0 | |||||||||
Total
equity
|
$ | 595.8 | 305.3 | $ | 290.5 |
(a)
|
In
addition to cash borrowings and repayments, the change in the debt balance
also includes changes in currency exchange rates and new capital lease
agreements.
|
December
31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
$ change
|
|||||||||
Short-term
debt
|
$ | 7.2 | 7.2 | - | ||||||||
Long-term
debt
|
188.4 | 181.4 | 7.0 | |||||||||
Debt
|
195.6 | 188.6 | 7.0 | |||||||||
Less
cash and cash equivalents
|
(143.0 | ) | (250.9 | ) | 107.9 | |||||||
Net
Debt (Cash) (a)
|
$ | 52.6 | (62.3 | ) | 114.9 |
(a)
|
Net
Debt (Cash) is a non-GAAP measure. Net Debt (Cash) is equal to
short-term debt plus the current and noncurrent portion of long-term debt
(“Debt” in the tables), less cash and cash
equivalents.
|
·
|
After-tax
U.S. pension plan contribution ($62
million)
|
·
|
Acquisitions
net of cash acquired ($75 million)
|
·
|
Venezuela
repatriation and translation at less favorable parallel market rate ($45
million)
|
·
|
Other
net inflows, including FBLET refund, additional U.S. tax refunds and cash
from operations, less foreign tax
|
Estimated
Payments Due by Period
|
||||||||||||||||||||||||||||
Later
|
||||||||||||||||||||||||||||
(In
millions)
|
2010
|
2011
|
2012
|
2013
|
2014
|
Years
|
Total
|
|||||||||||||||||||||
Contractual
obligations:
|
||||||||||||||||||||||||||||
Long-term debt
obligations
|
$ | 2.3 | 106.3 | 1.5 | 1.2 | 1.0 | 43.3 | 155.6 | ||||||||||||||||||||
Capital lease
obligations
|
13.8 | 6.0 | 3.5 | 2.5 | 1.9 | 5.1 | 32.8 | |||||||||||||||||||||
Operating lease
obligations
|
79.2 | 62.7 | 48.7 | 31.4 | 24.9 | 46.2 | 293.1 | |||||||||||||||||||||
Purchase
obligations:
|
||||||||||||||||||||||||||||
Service contracts
|
9.6 | 5.4 | 0.3 | - | - | - | 15.3 | |||||||||||||||||||||
Other
|
1.8 | 0.4 | 0.2 | 0.2 | 0.2 | 0.5 | 3.3 | |||||||||||||||||||||
Other long-term liabilities
reflected on the
|
||||||||||||||||||||||||||||
Company’s balance sheet under
GAAP:
|
||||||||||||||||||||||||||||
Primary U.S. pension
plan
|
- | - | 27.7 | 38.4 | 30.6 | 41.6 | 138.3 | |||||||||||||||||||||
Other retirement
obligations:
|
||||||||||||||||||||||||||||
UMWA plans
|
- | - | - | - | - | 419.0 | 419.0 | |||||||||||||||||||||
Black lung and other
plans
|
6.3 | 6.0 | 5.6 | 5.3 | 4.9 | 50.6 | 78.7 | |||||||||||||||||||||
Workers
compensation
|
||||||||||||||||||||||||||||
and other
claims
|
25.4 | 12.6 | 6.9 | 4.7 | 3.5 | 18.6 | 71.7 | |||||||||||||||||||||
Uncertain tax
positions
|
8.0 | - | - | - | - | - | 8.0 | |||||||||||||||||||||
Other
|
1.9 | 13.7 | 0.8 | 0.8 | 0.7 | 10.7 | 28.6 | |||||||||||||||||||||
Total
|
$ | 148.3 | 213.1 | 95.2 | 84.5 | 67.7 | 635.6 | 1,244.4 |
Actual
|
Projected
|
|||||||||||||||||||||||
(in
millions)
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
||||||||||||||||||
U.S.
pension plans
|
||||||||||||||||||||||||
Beginning
balance
|
$ | 329.2 | 152.3 | 141.4 | 129.4 | 87.4 | 29.4 | |||||||||||||||||
Net
periodic pension credit (a)
|
(13.5 | ) | (20.3 | ) | (17.7 | ) | (15.7 | ) | (16.1 | ) | (21.8 | ) | ||||||||||||
Payment
from Brink’s
|
(150.0 | ) | - | - | (27.7 | ) | (38.4 | ) | (30.6 | ) | ||||||||||||||
Benefit
plan experience (gain) loss
|
(9.2 | ) | 11.0 | 7.4 | 3.0 | (1.1 | ) | - | ||||||||||||||||
Other
|
(4.2 | ) | (1.6 | ) | (1.7 | ) | (1.6 | ) | (2.4 | ) | (1.3 | ) | ||||||||||||
Ending
underfunded (overfunded) balance
|
$ | 152.3 | 141.4 | 129.4 | 87.4 | 29.4 | (24.3 | ) | ||||||||||||||||
UMWA
plans
|
||||||||||||||||||||||||
Beginning
balance
|
$ | 207.5 | 157.5 | 158.5 | 159.9 | 161.8 | 164.2 | |||||||||||||||||
Net
periodic postretirement cost (a)
|
3.2 | 1.0 | 1.4 | 1.9 | 2.4 | 3.0 | ||||||||||||||||||
Payment
from Brink’s
|
(0.5 | ) | - | - | - | - | - | |||||||||||||||||
Benefit
plan experience gain
|
(52.7 | ) | - | - | - | - | - | |||||||||||||||||
Ending
underfunded balance
|
$ | 157.5 | 158.5 | 159.9 | 161.8 | 164.2 | 167.2 | |||||||||||||||||
Black
lung and other plans
|
||||||||||||||||||||||||
Beginning
balance
|
$ | 48.6 | 47.1 | 43.2 | 39.4 | 35.9 | 32.5 | |||||||||||||||||
Net
periodic postretirement cost (a)
|
1.4 | 2.4 | 2.2 | 2.1 | 1.9 | 1.8 | ||||||||||||||||||
Payment
from Brink’s
|
(7.6 | ) | (6.3 | ) | (6.0 | ) | (5.6 | ) | (5.3 | ) | (4.9 | ) | ||||||||||||
Benefit
plan experience loss
|
4.5 | - | - | - | - | - | ||||||||||||||||||
Other
|
0.2 | - | - | - | - | - | ||||||||||||||||||
Ending
unfunded balance
|
$ | 47.1 | 43.2 | 39.4 | 35.9 | 32.5 | 29.4 |
(a)
|
Excludes
amounts reclassified from accumulated other comprehensive
income.
|
Actual
|
Projected
|
|||||||||||||||||||||||
(in
millions)
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
||||||||||||||||||
U.S.
pension plans
|
$ | (4.1 | ) | (0.7 | ) | 5.9 | 11.7 | 14.0 | 3.1 | |||||||||||||||
UMWA
plans
|
19.9 | 16.5 | 16.2 | 16.1 | 16.0 | 16.0 | ||||||||||||||||||
Black
lung and other plans
|
2.9 | 2.9 | 2.9 | 2.8 | 2.6 | 2.5 | ||||||||||||||||||
Total
|
$ | 18.7 | 18.7 | 25.0 | 30.6 | 32.6 | 21.6 | |||||||||||||||||
Amounts
allocated to:
|
||||||||||||||||||||||||
North American
segment
|
$ | (2.0 | ) | (0.8 | ) | 1.7 | 4.0 | 4.9 | 0.7 | |||||||||||||||
Non-segment
|
20.7 | 19.5 | 23.3 | 26.6 | 27.7 | 20.9 | ||||||||||||||||||
Total
|
$ | 18.7 | 18.7 | 25.0 | 30.6 | 32.6 | 21.6 |
·
|
from
Brink’s to U.S. retirement plans,
and
|
·
|
from
the plans to participants.
|
Actual
|
Projected
|
|||||||||||||||||||||||
(in
millions)
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
||||||||||||||||||
Payments
from Brink’s to U.S. Plans
|
||||||||||||||||||||||||
U.S.
pension plans
|
$ | 150.0 | - | - | 27.7 | 38.4 | 30.6 | |||||||||||||||||
UMWA
plans
|
0.5 | - | - | - | - | - | ||||||||||||||||||
Black
lung and other plans (a)
|
7.6 | 6.3 | 6.0 | 5.6 | 5.3 | 4.9 | ||||||||||||||||||
Total
|
$ | 158.1 | 6.3 | 6.0 | 33.3 | 43.7 | 35.5 | |||||||||||||||||
(a)These
plans are not funded.
|
||||||||||||||||||||||||
Payments
from U.S. Plans to participants
|
||||||||||||||||||||||||
U.S.
pension plans
|
$ | 36.1 | 40.3 | 42.0 | 43.6 | 46.2 | 47.0 | |||||||||||||||||
UMWA
plans
|
36.4 | 36.4 | 37.2 | 37.6 | 38.0 | 37.6 | ||||||||||||||||||
Black
lung and other plans
|
7.6 | 6.3 | 6.0 | 5.6 | 5.3 | 4.9 | ||||||||||||||||||
Total
|
$ | 80.1 | 83.0 | 85.2 | 86.8 | 89.5 | 89.5 |
December
31,
|
||||||||
(In
millions)
|
2009
|
2008
|
||||||
U.S.
|
$ | 9.8 | 151.0 | |||||
Non-U.S.
|
35.6 | 32.6 | ||||||
Total
|
$ | 45.4 | 183.6 |
·
|
projected
revenues and operating income for our U.S.
entities,
|
·
|
estimated
required contributions to our U.S. retirement plans,
and
|
·
|
interest
rates on projected U.S. borrowings.
|
·
|
Pension
obligations – FASB ASC Topic 715
|
·
|
Other
retiree obligations – FASB ASC Topic
715
|
·
|
Workers’
compensation obligations – FASB ASC Topic
712
|
Primary
U.S. Plan
|
UMWA
Plans
|
Black
Lung
|
||||||||||||||||||||||||||||||||||
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
||||||||||||||||||||||||||||
Discount
rate:
|
||||||||||||||||||||||||||||||||||||
Retirement cost
|
6.7 | % | 6.4 | % | 5.8 | % | 6.2 | % | 6.4 | % | 5.8 | % | 6.3 | % | 6.1 | % | 5.8 | % | ||||||||||||||||||
Benefit obligation at year
end
|
5.9 | % | 6.2 | % | 6.4 | % | 5.9 | % | 6.2 | % | 6.4 | % | 5.4 | % | 6.3 | % | 6.1 | % |
Hypothetical
|
Actual
|
Hypothetical
|
||||||||||
(In
millions)
|
4.9 | % | 5.9 | % | 6.9 | % | ||||||
Primary
U.S. pension plan
|
$ | 895.9 | 790.7 | 697.8 | ||||||||
UMWA
plans
|
514.2 | 465.5 | 424.7 |
(In
millions, except percentages)
|
Hypothetical
sensitivity analysis for discount rate assumption
|
Hypothetical
sensitivity analysis for discount rate assumption
|
||||||||||||||||||||||
Actual
|
1%
lower
|
1%
higher
|
Projected
|
1%
lower
|
1%
higher
|
|||||||||||||||||||
Years
Ending December 31,
|
2009
|
2009
|
2009
|
2010
|
2010
|
2010
|
||||||||||||||||||
Primary
U.S. pension plan
|
||||||||||||||||||||||||
Discount
rate assumption
|
6.7 | % | 5.7 | % | 7.7 | % | 5.9 | % | 4.9 | % | 6.9 | % | ||||||||||||
Retirement
cost (credit)
|
$ | (5.7 | ) | 2.9 | (14.0 | ) | $ | (2.2 | ) | 6.8 | (12.1 | ) | ||||||||||||
UMWA
plans
|
||||||||||||||||||||||||
Discount
rate assumption
|
6.2 | % | 5.2 | % | 7.2 | % | 5.9 | % | 4.9 | % | 6.9 | % | ||||||||||||
Retirement
cost
|
19.9 | 21.1 | 18.9 | 16.5 | 17.7 | 15.4 |
(In
millions, except percentages)
|
Hypothetical
sensitivity analysis for expected-return-on asset
assumption
|
Hypothetical
sensitivity analysis for expected-return-on asset
assumption
|
||||||||||||||||||||||
Actual
|
1%
lower
|
1%
higher
|
Projected
|
1%
lower
|
1%
higher
|
|||||||||||||||||||
Years
Ending December 31,
|
2009
|
2009
|
2009
|
2010
|
2010
|
2010
|
||||||||||||||||||
Expected-return-on-asset
assumption
|
8.8 | % | 7.8 | % | 9.8 | % | 8.8 | % | 7.8 | % | 9.8 | % | ||||||||||||
Primary
U.S. pension plan (a)
|
$ | (5.7 | ) | 1.3 | (12.7 | ) | $ | (2.2 | ) | 5.4 | (9.8 | ) | ||||||||||||
UMWA
plans
|
19.9 | 22.5 | 17.3 | 16.5 | 19.4 | 13.6 |
(In
millions, except percentages)
|
Hypothetical
sensitivity analysis of 2010 asset return better or worse than
expected
|
|||||||||||
Better
|
Worse
|
|||||||||||
Years
Ending December 31,
|
Projected
|
return
|
return
|
|||||||||
Return
on investments in 2010
|
8.8 | % | 17.5 | % | 0 | % | ||||||
Funded
Status at December 31, 2010
|
||||||||||||
Primary
U.S. pension plan
|
$ | (122 | ) | (66 | ) | (178 | ) | |||||
UMWA
plans
|
(159 | ) | (133 | ) | (184 | ) | ||||||
2011
Expense
|
||||||||||||
Primary
U.S. pension plan (a)
|
$ | 4 | 2 | 7 | ||||||||
UMWA
plans
|
16 | 12 | 20 |
(In
millions)
|
Based
on market-related value of assets
|
Hypothetical
(a)
|
||||||
Actual
|
Projected
|
Projected
|
||||||
Years
Ending December 31,
|
2009
|
2010
|
2011
|
2009
|
2010
|
2011
|
||
Expense
(Income)
|
||||||||
Primary
U.S. pension plan
|
$
|
(5.7)
|
(2.2)
|
4.5
|
$
|
39.0
|
18.7
|
14.0
|
Plan
|
Mortality
table
|
|
UMWA
plans
|
RP-2000
Employee, Annuitant Healthy Blue Collar
|
|
Black
Lung
|
RP-2000
Blue Collar
|
|
Primary
U.S. pension
|
RP-2000
Combined Healthy Blue Collar
|
Number
of participants
|
||||||||||||||||||||
Plan
|
2009
|
2008
|
2007
|
2006
|
2005
|
|||||||||||||||
UMWA
plans
|
4,700 | 4,900 | 5,000 | 5,200 | 5,400 | |||||||||||||||
Black
Lung
|
700 | 700 | 800 | 800 | 800 | |||||||||||||||
U.S.
pension
|
21,100 | 21,500 | 22,500 | 24,800 | 23,800 |
·
|
$85
million attributable to Brink’s
|
·
|
$54
million attributable to noncontrolling interests,
and
|
·
|
$139
million in total.
|
Hypothetical
Effects
|
||||
(In
millions)
|
Increase/
(decrease)
|
|||
Effect
on Earnings:
|
||||
Translation
of 2009 earnings into U.S. dollars
|
$ | (12.8 | ) | |
Transaction
gains (losses)
|
0.1 | |||
Effect
on Other Comprehensive Income (Loss):
|
||||
Translation
of net assets of foreign subsidiaries
|
(65.2 | ) |
Page
|
||
MANAGEMENT’S
ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
|
66
|
|
REPORTS
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
67
|
|
CONSOLIDATED
FINANCIAL STATEMENTS
|
||
Consolidated
Balance Sheets
|
69
|
|
Consolidated
Statements of Income
|
70
|
|
Consolidated
Statements of Comprehensive Income (Loss)
|
71
|
|
Consolidated
Statements of Shareholders’ Equity
|
72
|
|
Consolidated
Statements of Cash Flows
|
73
|
|
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
|
||
Note
1 – Summary of Significant Accounting Policies
|
74
|
|
Note
2 – Segment Information
|
81
|
|
Note
3 – Retirement Benefits
|
83
|
|
Note
4 – Income Taxes
|
91
|
|
Note
5 – Property and Equipment
|
94
|
|
Note
6 – Acquisitions
|
94
|
|
Note
7 – Goodwill and Other Intangible Assets
|
96
|
|
Note
8 – Other Assets
|
97
|
|
Note
9 – Fair Value of Financial Instruments
|
97
|
|
Note
10 – Accrued Liabilities
|
98
|
|
Note
11 – Other Liabilities
|
98
|
|
Note
12 – Long-Term Debt
|
98
|
|
Note
13 – Accounts Receivable
|
100
|
|
Note
14 – Operating Leases
|
100
|
|
Note
15 – Share-Based Compensation Plans
|
101
|
|
Note
16 – Capital Stock
|
104
|
|
Note
17 – Income from Discontinued Operations
|
105
|
|
Note
18 – Supplemental Cash Flow Information
|
106
|
|
Note
19 – Other Operating Income (Expense)
|
106
|
|
Note
20 – Interest and Other Nonoperating Income
|
106
|
|
Note
21 – Other Commitments and Contingencies
|
107
|
|
Note
22 – Selected Quarterly Financial Data (unaudited)
|
108
|
December
31,
|
||||||||
(In
millions, except per share amounts)
|
2009
|
2008
|
||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash and cash
equivalents
|
$ | 143.0 | 250.9 | |||||
Accounts receivable (net of
allowance: 2009 – $7.1; 2008 – $6.8)
|
427.6 | 450.7 | ||||||
Prepaid expenses and
other
|
81.0 | 99.7 | ||||||
Deferred income
taxes
|
38.5 | 31.1 | ||||||
Total current
assets
|
690.1 | 832.4 | ||||||
Property
and equipment, net
|
549.5 | 534.0 | ||||||
Goodwill
|
213.7 | 139.6 | ||||||
Deferred
income taxes
|
254.1 | 202.6 | ||||||
Other
|
172.4 | 107.2 | ||||||
Total assets
|
$ | 1,879.8 | 1,815.8 | |||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Short-term
borrowings
|
$ | 7.2 | 7.2 | |||||
Current maturities of long-term
debt
|
16.1 | 8.4 | ||||||
Accounts payable
|
127.2 | 137.8 | ||||||
Income taxes
payable
|
5.5 | 21.2 | ||||||
Accrued
liabilities
|
364.3 | 360.5 | ||||||
Total current
liabilities
|
520.3 | 535.1 | ||||||
Long-term
debt
|
172.3 | 173.0 | ||||||
Accrued
pension costs
|
192.1 | 373.4 | ||||||
Retirement
benefits other than pensions
|
198.3 | 249.9 | ||||||
Deferred
income taxes
|
30.5 | 21.5 | ||||||
Other
|
170.5 | 157.6 | ||||||
Total liabilities
|
1,284.0 | 1,510.5 | ||||||
Commitments
and contingent liabilities (notes 3, 4, 12, 14, 17 and 21)
|
||||||||
Equity:
|
||||||||
The Brink’s Company (“Brink’s”)
shareholders’ equity:
|
||||||||
Common
stock, par value $1 per share:
|
||||||||
Shares
authorized: 100.0
|
||||||||
Shares issued and outstanding:
2009 – 47.9; 2008 – 45.7
|
47.9 | 45.7 | ||||||
Capital in excess of par
value
|
550.2 | 486.3 | ||||||
Retained
earnings
|
514.8 | 310.0 | ||||||
Accumulated other
comprehensive income (loss):
|
||||||||
Benefit plan experience
loss
|
(517.1 | ) | (603.7 | ) | ||||
Benefit plan prior service
cost
|
(3.4 | ) | (4.5 | ) | ||||
Foreign currency
translation
|
(60.7 | ) | (20.4 | ) | ||||
Unrealized gains on marketable
securities
|
3.2 | 0.6 | ||||||
Accumulated other comprehensive
loss
|
(578.0 | ) | (628.0 | ) | ||||
Total Brink’s shareholders’
equity
|
534.9 | 214.0 | ||||||
Noncontrolling
interests
|
60.9 | 91.3 | ||||||
Total equity
|
595.8 | 305.3 | ||||||
Total liabilities and
shareholders’ equity
|
$ | 1,879.8 | 1,815.8 |
Years
Ended December 31,
|
||||||||||||
(In
millions, except per share amounts)
|
2009
|
2008
|
2007
|
|||||||||
Revenues
|
$ | 3,135.0 | 3,163.5 | 2,734.6 | ||||||||
Costs
and Expenses:
|
||||||||||||
Cost
of revenues
|
2,534.5 | 2,505.1 | 2,194.9 | |||||||||
Selling,
general and administrative expenses
|
430.2 | 434.5 | 379.8 | |||||||||
Total costs and
expenses
|
2,964.7 | 2,939.6 | 2,574.7 | |||||||||
Other
operating income (expense)
|
(3.5 | ) | 4.6 | 1.1 | ||||||||
Operating profit
|
166.8 | 228.5 | 161.0 | |||||||||
Interest
expense
|
(11.3 | ) | (12.0 | ) | (10.8 | ) | ||||||
Interest
and other income
|
10.8 | 8.1 | 10.5 | |||||||||
Income from continuing operations
before income taxes
|
166.3 | 224.6 | 160.7 | |||||||||
Provision
for (benefit from) income taxes
|
(61.1 | ) | 53.0 | 59.5 | ||||||||
Income from continuing
operations
|
227.4 | 171.6 | 101.2 | |||||||||
Income
from discontinued operations, net of tax
|
4.5 | 51.5 | 58.9 | |||||||||
Net income
|
231.9 | 223.1 | 160.1 | |||||||||
Less net income attributable
to noncontrolling interests
|
(31.7 | ) | (39.8 | ) | (22.8 | ) | ||||||
Net income attributable to
Brink’s
|
$ | 200.2 | 183.3 | 137.3 | ||||||||
Amounts
attributable to Brink’s:
|
||||||||||||
Income
from continuing operations
|
$ | 195.7 | 131.8 | 78.4 | ||||||||
Income
from discontinued operations
|
4.5 | 51.5 | 58.9 | |||||||||
Net income attributable to
Brink’s
|
$ | 200.2 | 183.3 | 137.3 | ||||||||
Earnings
per share attributable to Brink’s common shareholders:
|
||||||||||||
Basic:
|
||||||||||||
Continuing
operations
|
$ | 4.14 | 2.85 | 1.68 | ||||||||
Discontinued
operations
|
0.10 | 1.11 | 1.27 | |||||||||
Net income
|
4.23 | 3.96 | 2.95 | |||||||||
Diluted:
|
||||||||||||
Continuing
operations
|
$ | 4.11 | 2.82 | 1.67 | ||||||||
Discontinued
operations
|
0.10 | 1.10 | 1.25 | |||||||||
Net income
|
4.21 | 3.93 | 2.92 | |||||||||
Weighted-average
shares
|
||||||||||||
Basic
|
47.2 | 46.3 | 46.5 | |||||||||
Diluted
|
47.5 | 46.7 | 47.0 |
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Net
income
|
$ | 231.9 | 223.1 | 160.1 | ||||||||
Other
comprehensive income (loss):
|
||||||||||||
Benefit plan
experience:
|
||||||||||||
Net experience gains (losses)
arising during the year
|
68.2 | (501.2 | ) | 112.6 | ||||||||
Tax benefit (provision) related
to net experience gains and losses arising during the year
|
(0.3 | ) | 32.7 | (40.8 | ) | |||||||
Reclassification adjustment for
amortization of prior net experience loss included in net
income
|
28.2 | 11.8 | 27.1 | |||||||||
Tax benefit related to
reclassification adjustment
|
(9.5 | ) | (0.7 | ) | (8.9 | ) | ||||||
Benefit plan experience gain
(loss), net of tax
|
86.6 | (457.4 | ) | 90.0 | ||||||||
Benefit plan prior service credit
(cost):
|
||||||||||||
Prior service credit from plan
amendment during the year
|
- | 3.1 | 0.1 | |||||||||
Tax provision related to prior
service credit from plan amendment during the year
|
- | (0.5 | ) | - | ||||||||
Reclassification adjustment for
amortization of prior service cost (credit) included in net
income
|
1.2 | (0.3 | ) | 1.3 | ||||||||
Tax provision (benefit) related
to reclassification adjustment
|
(0.1 | ) | 0.6 | - | ||||||||
Benefit plan prior service
credit, net of tax
|
1.1 | 2.9 | 1.4 | |||||||||
Foreign currency:
|
||||||||||||
Translation adjustments arising
during the year
|
(92.4 | ) | (47.0 | ) | 41.6 | |||||||
Tax benefit (provision) related
to translation adjustments
|
(0.7 | ) | 0.8 | (0.1 | ) | |||||||
Reclassification adjustment for
dispositions of businesses
|
- | - | (0.1 | ) | ||||||||
Foreign currency translation
adjustments, net of tax
|
(93.1 | ) | (46.2 | ) | 41.4 | |||||||
Marketable
securities:
|
||||||||||||
Unrealized net gains (losses) on
marketable securities arising during the year
|
2.1 | (7.2 | ) | 1.1 | ||||||||
Tax benefit (provision) related
to unrealized net gains and losses on marketable
securities
|
- | 2.6 | (0.4 | ) | ||||||||
Reclassification adjustment for
net (gains) losses realized in net income
|
- | 6.2 | (1.4 | ) | ||||||||
Tax provision (benefit) related
to reclassification adjustment
|
- | (2.2 | ) | 0.5 | ||||||||
Unrealized net gains (losses) on
marketable securities, net of tax
|
2.1 | (0.6 | ) | (0.2 | ) | |||||||
Other comprehensive income
(loss)
|
(3.3 | ) | (501.3 | ) | 132.6 | |||||||
Comprehensive income
(loss)
|
$ | 228.6 | (278.2 | ) | 292.7 | |||||||
Amounts
attributable to Brink’s:
|
||||||||||||
Net income
|
$ | 200.2 | 183.3 | 137.3 | ||||||||
Benefit plan
experience
|
86.6 | (457.4 | ) | 90.0 | ||||||||
Benefit plan prior service
credit
|
1.1 | 2.9 | 1.4 | |||||||||
Foreign currency
|
(40.3 | ) | (43.9 | ) | 39.7 | |||||||
Marketable
securities
|
2.6 | (0.6 | ) | (0.2 | ) | |||||||
Other comprehensive income
(loss)
|
50.0 | (499.0 | ) | 130.9 | ||||||||
Comprehensive income (loss)
attributable to Brink’s
|
250.2 | (315.7 | ) | 268.2 | ||||||||
Amounts
attributable to noncontrolling interests:
|
||||||||||||
Net income
|
31.7 | 39.8 | 22.8 | |||||||||
Foreign currency
|
(52.8 | ) | (2.3 | ) | 1.7 | |||||||
Marketable
securities
|
(0.5 | ) | - | - | ||||||||
Other comprehensive income
(loss)
|
(53.3 | ) | (2.3 | ) | 1.7 | |||||||
Comprehensive income (loss)
attributable to noncontrolling interests
|
(21.6 | ) | 37.5 | 24.5 | ||||||||
Comprehensive income
(loss)
|
$ | 228.6 | (278.2 | ) | 292.7 |
Capital
in
Excess
|
Accumulated
Other
|
|||||||
Shares
|
Common
|
of
Par
|
Retained
|
Comprehensive
|
Noncontrolling
|
|||
(In
millions)
|
(a)
|
Stock
|
Value
|
Earnings
|
Loss
|
Interests
|
Total
|
|
Balance
as of December 31, 2006
|
48.5
|
$
|
48.5
|
414.7
|
552.0
|
(261.4)
|
51.8
|
805.6
|
Net
income
|
-
|
-
|
-
|
137.3
|
-
|
22.8
|
160.1
|
|
Other
comprehensive income
|
-
|
-
|
-
|
-
|
130.9
|
1.7
|
132.6
|
|
Shares
repurchased (see note 16)
|
(0.1)
|
(0.1)
|
(0.5)
|
(3.0)
|
-
|
-
|
(3.6)
|
|
Dividends
to:
|
||||||||
Brink’s common
shareholders ($0.3625 per share)
|
-
|
-
|
-
|
(16.5)
|
-
|
-
|
(16.5)
|
|
Noncontrolling
interests
|
-
|
-
|
-
|
-
|
-
|
(7.2)
|
(7.2)
|
|
Share-based
compensation:
|
||||||||
Stock options and
awards:
|
||||||||
Compensation expense
(b)
|
-
|
-
|
11.7
|
-
|
-
|
-
|
11.7
|
|
Consideration from exercise of
stock options
|
-
|
-
|
12.6
|
-
|
-
|
-
|
12.6
|
|
Excess tax benefit of stock compensation
|
-
|
-
|
5.9
|
-
|
-
|
-
|
5.9
|
|
Other share-based benefit
programs
|
-
|
-
|
8.4
|
(0.3)
|
-
|
-
|
8.1
|
|
Retire
shares of common stock
|
-
|
-
|
(0.2)
|
(0.7)
|
-
|
-
|
(0.9)
|
|
Adoption
of - Financial Accounting Standards Board
|
||||||||
Interpretation 48 (see note
1)
|
-
|
-
|
-
|
7.0
|
-
|
-
|
7.0
|
|
Purchases
of subsidiary shares from
|
||||||||
noncontrolling
interests
|
-
|
-
|
-
|
-
|
-
|
(0.9)
|
(0.9)
|
|
Balance
as of December 31, 2007
|
48.4
|
48.4
|
452.6
|
675.8
|
(130.5)
|
68.2
|
1,114.5
|
|
Net
income
|
-
|
-
|
-
|
183.3
|
-
|
39.8
|
223.1
|
|
Other
comprehensive loss
|
-
|
-
|
-
|
-
|
(499.0)
|
(2.3)
|
(501.3)
|
|
Shares
repurchased (see note 16)
|
(1.0)
|
(1.0)
|
(9.8)
|
(45.7)
|
-
|
-
|
(56.5)
|
|
Termination
of Employee Benefits Trust
|
(1.7)
|
(1.7)
|
1.7
|
-
|
-
|
-
|
-
|
|
Dividends
to:
|
||||||||
Brink’s common
shareholders ($0.40 per share)
|
-
|
-
|
-
|
(18.2)
|
-
|
-
|
(18.2)
|
|
Noncontrolling
interests
|
-
|
-
|
-
|
-
|
-
|
(12.4)
|
(12.4)
|
|
Share-based
compensation:
|
||||||||
Stock options and
awards:
|
||||||||
Compensation expense
(a)
|
-
|
-
|
9.5
|
-
|
-
|
-
|
9.5
|
|
Consideration from exercise of
stock options
|
0.1
|
0.1
|
18.5
|
-
|
-
|
-
|
18.6
|
|
Excess tax benefit of stock compensation
|
-
|
-
|
13.3
|
-
|
-
|
-
|
13.3
|
|
Other share-based benefit
programs
|
0.1
|
0.1
|
4.3
|
(0.3)
|
-
|
-
|
4.1
|
|
Retire
shares of common stock
|
(0.2)
|
(0.2)
|
(3.8)
|
(16.0)
|
-
|
-
|
(20.0)
|
|
Spin-off
of Brink’s Home Security Holdings, Inc.
|
||||||||
(“BHS”) (see note
17)
|
-
|
-
|
-
|
(468.9)
|
1.5
|
-
|
(467.4)
|
|
Purchases
of subsidiary shares from
|
||||||||
noncontrolling
interests
|
-
|
-
|
-
|
-
|
-
|
(2.0)
|
(2.0)
|
|
Balance
as of December 31, 2008
|
45.7
|
45.7
|
486.3
|
310.0
|
(628.0)
|
91.3
|
305.3
|
|
Net
income
|
-
|
-
|
-
|
200.2
|
-
|
31.7
|
231.9
|
|
Other
comprehensive loss
|
-
|
-
|
-
|
-
|
50.0
|
(53.3)
|
(3.3)
|
|
Shares
repurchased (see note 16)
|
(0.2)
|
(0.2)
|
(2.5)
|
(3.4)
|
-
|
-
|
(6.1)
|
|
Shares
contributed to pension plan (see note 16)
|
2.3
|
2.3
|
55.3
|
-
|
-
|
-
|
57.6
|
|
Dividends
to:
|
||||||||
Brink’s common
shareholders ($0.40 per share)
|
-
|
-
|
-
|
(18.4)
|
-
|
-
|
(18.4)
|
|
Noncontrolling
interests
|
-
|
-
|
-
|
-
|
-
|
(13.7)
|
(13.7)
|
|
Share-based
compensation:
|
||||||||
Stock options and
awards:
|
||||||||
Compensation
expense
|
-
|
-
|
6.6
|
-
|
-
|
-
|
6.6
|
|
Consideration from exercise of
stock options
|
0.1
|
0.1
|
1.2
|
-
|
-
|
-
|
1.3
|
|
Excess tax benefit of stock compensation
|
-
|
-
|
0.1
|
-
|
-
|
-
|
0.1
|
|
Other share-based benefit
programs
|
-
|
-
|
3.2
|
(0.4)
|
-
|
-
|
2.8
|
|
Adjustment
to spin-off of BHS (see note 17)
|
-
|
-
|
-
|
26.8
|
-
|
-
|
26.8
|
|
Acquisitions
of new subsidiaries (see note 6)
|
-
|
-
|
-
|
-
|
-
|
4.9
|
4.9
|
|
Balance
as of December 31, 2009
|
47.9
|
$
|
47.9
|
550.2
|
514.8
|
(578.0)
|
60.9
|
595.8
|
(a)
|
Includes
1.7 million shares at December 31, 2007, held by The Brink’s Company
Employee Benefits Trust that were not allocated to
participants. The trust was terminated in 2008 (see note
16).
|
(b)
|
Includes
amounts classified as discontinued
operations.
|
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
income
|
$ | 231.9 | 223.1 | 160.1 | ||||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
Income from discontinued
operations, net of tax
|
(4.5 | ) | (51.5 | ) | (58.9 | ) | ||||||
Depreciation and
amortization
|
135.1 | 122.3 | 110.0 | |||||||||
Stock compensation
expense
|
6.6 | 7.8 | 10.1 | |||||||||
Deferred income
taxes
|
(91.0 | ) | (20.0 | ) | 9.9 | |||||||
Gains:
|
||||||||||||
Sales
of property and other assets
|
(9.4 | ) | (13.1 | ) | (4.6 | ) | ||||||
Acquisitions
of controlling interest of equity-method investments
|
(14.9 | ) | - | - | ||||||||
Impairment
charges:
|
||||||||||||
Marketable
securities
|
- | 7.1 | - | |||||||||
Long-lived assets
|
2.7 | 1.9 | 2.5 | |||||||||
Retirement
benefit funding (more) less than expense:
|
||||||||||||
Pension
|
(102.7 | ) | (12.2 | ) | (7.7 | ) | ||||||
Other than
pension
|
15.3 | (5.1 | ) | 1.1 | ||||||||
Other operating,
net
|
4.3 | 5.0 | 6.2 | |||||||||
Change in operating assets and
liabilities, net of effects of acquisitions:
|
||||||||||||
Accounts
receivable
|
8.9 | (24.1 | ) | 0.3 | ||||||||
Accounts payable, income taxes
payable and accrued liabilities
|
(16.4 | ) | 40.8 | 28.8 | ||||||||
Prepaid and other current
assets
|
3.5 | (21.8 | ) | (7.3 | ) | |||||||
Other, net
|
2.3 | (5.8 | ) | 11.5 | ||||||||
Discontinued operations,
net
|
23.5 | 172.7 | 191.7 | |||||||||
Net cash provided by operating
activities
|
195.2 | 427.1 | 453.7 | |||||||||
Cash
flows from investing activities:
|
||||||||||||
Capital
expenditures
|
(170.6 | ) | (165.3 | ) | (141.8 | ) | ||||||
Acquisitions
|
(74.6 | ) | (11.7 | ) | (13.4 | ) | ||||||
Marketable
securities:
|
||||||||||||
Purchases
|
(11.1 | ) | (3.5 | ) | (1.8 | ) | ||||||
Sales
|
4.7 | 2.5 | 1.3 | |||||||||
Cash
proceeds from sale of property, equipment and investments
|
10.5 | 16.9 | 14.0 | |||||||||
Cash
held by home security business at spin-off
|
- | (50.0 | ) | - | ||||||||
Other,
net
|
- | 2.0 | (0.3 | ) | ||||||||
Discontinued
operations, net
|
- | (150.8 | ) | (175.5 | ) | |||||||
Net cash used by investing
activities
|
(241.1 | ) | (359.9 | ) | (317.5 | ) | ||||||
Cash
flows from financing activities:
|
||||||||||||
Borrowings
and repayments:
|
||||||||||||
Short-term
debt
|
(0.9 | ) | (4.4 | ) | (23.2 | ) | ||||||
Long-term
revolving credit facilities
|
(10.1 | ) | 93.5 | (33.5 | ) | |||||||
Other
long-term debt:
|
||||||||||||
Borrowings
|
0.6 | - | 6.9 | |||||||||
Repayments
|
(11.9 | ) | (12.6 | ) | (12.1 | ) | ||||||
Cash
proceeds from sale-leaseback transactions
|
13.6 | - | - | |||||||||
Repurchase
shares of common stock of Brink’s
|
(6.9 | ) | (56.6 | ) | (2.7 | ) | ||||||
Dividends
to:
|
||||||||||||
Shareholders of
Brink’s
|
(18.4 | ) | (18.2 | ) | (16.5 | ) | ||||||
Noncontrolling interests in
subsidiaries
|
(13.7 | ) | (12.4 | ) | (7.2 | ) | ||||||
Proceeds
from exercise of stock options
|
1.3 | 16.2 | 12.6 | |||||||||
Excess
tax benefits associated with stock compensation
|
0.3 | 12.5 | 5.8 | |||||||||
Minimum
tax withholdings associated with stock compensation
|
(0.4 | ) | (17.6 | ) | (0.8 | ) | ||||||
Other,
net
|
(0.1 | ) | - | 0.4 | ||||||||
Discontinued
operations, net
|
- | - | (14.8 | ) | ||||||||
Net cash provided (used) by
financing activities
|
(46.6 | ) | 0.4 | (85.1 | ) | |||||||
Effect
of exchange rate changes on cash
|
(15.4 | ) | (13.1 | ) | 8.1 | |||||||
Cash
and cash equivalents:
|
||||||||||||
Increase
(decrease)
|
(107.9 | ) | 54.5 | 59.2 | ||||||||
Balance at beginning of
year
|
250.9 | 196.4 | 137.2 | |||||||||
Balance at end of
year
|
$ | 143.0 | 250.9 | 196.4 |
Estimated
Useful Lives
|
Years
|
|
Buildings
|
16
to 25
|
|
Building
leasehold improvements
|
3
to 10
|
|
Vehicles
|
3
to 10
|
|
Capitalized
software
|
3
to 5
|
|
Other
machinery and equipment
|
3
to 10
|
|
Machinery
and equipment leasehold improvements
|
3
to 10
|
|
Level
1: Quoted prices (unadjusted) in active markets that are
accessible at the measurement date for identical assets and
liabilities. Thefair value hierarchy gives the highest priority
to Level 1 inputs.
|
|
Level
2: Observable prices that are based on inputs not quoted on
active markets, but are corroborated by market
data.
|
|
Level
3: Unobservable inputs are used when little or no market data
is available. The fair value hierarchy gives the lowest
priority to Level 3 inputs.
|
·
|
Cash-in-transit
(“CIT”) armored car transportation
|
·
|
Automated
teller machine (“ATM”) replenishment and
servicing
|
·
|
Global
Services – arranging secure long-distance
transportation of valuables
|
·
|
Cash
Logistics – supply chain management of cash; from point-of-sale through
transport, vaulting and bank
deposit
|
·
|
Payment
Services – consumers pay utility and other bills at payment
locations
|
·
|
Guarding
services, including airport
security
|
Revenues
|
Operating
Profit (Loss)
|
|||||||||||||||||||||||
Years
Ended December 31,
|
Years
Ended December 31,
|
|||||||||||||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
||||||||||||||||||
Business
Segments
|
||||||||||||||||||||||||
International
|
$ | 2,240.9 | 2,231.3 | 1,848.3 | $ | 156.8 | 215.0 | 152.9 | ||||||||||||||||
North
America
|
894.1 | 932.2 | 886.3 | 56.6 | 56.9 | 70.4 | ||||||||||||||||||
Business segments
|
3,135.0 | 3,163.5 | 2,734.6 | 213.4 | 271.9 | 223.3 | ||||||||||||||||||
Non-segment
|
- | - | - | (46.6 | ) | (43.4 | ) | (62.3 | ) | |||||||||||||||
$ | 3,135.0 | 3,163.5 | 2,734.6 | $ | 166.8 | 228.5 | 161.0 |
Capital
Expenditures
|
Depreciation
and Amortization
|
|||||||||||||||||||||||
Years
Ended December 31,
|
Years
Ended December 31,
|
|||||||||||||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
||||||||||||||||||
Business
Segments
|
||||||||||||||||||||||||
International
|
$ | 103.1 | 112.7 | 94.8 | $ | 88.5 | 85.7 | 75.3 | ||||||||||||||||
North
America
|
67.5 | 52.6 | 47.0 | 36.6 | 31.0 | 29.7 | ||||||||||||||||||
Property and
equipment
|
170.6 | 165.3 | 141.8 | 125.1 | 116.7 | 105.0 | ||||||||||||||||||
Amortization
of intangible assets:
|
||||||||||||||||||||||||
International
|
- | - | - | 9.0 | 4.8 | 4.4 | ||||||||||||||||||
North America
|
- | - | - | 1.0 | 0.8 | 0.6 | ||||||||||||||||||
$ | 170.6 | 165.3 | 141.8 | $ | 135.1 | 122.3 | 110.0 |
Assets
|
||||||||||||
December
31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Business
Segments
|
||||||||||||
International
|
$ | 1,265.5 | 1,289.1 | 1,187.8 | ||||||||
North
America
|
335.4 | 341.9 | 329.5 | |||||||||
Business Segments
|
1,600.9 | 1,631.0 | 1,517.3 | |||||||||
Non-segment
|
278.9 | 184.8 | 160.7 | |||||||||
Discontinued
operations
|
- | - | 716.3 | |||||||||
$ | 1,879.8 | 1,815.8 | 2,394.3 |
Long-Lived
Assets (a)
|
Revenues
|
|||||||||||||||||||||||
December
31,
|
Years
Ended December 31,
|
|||||||||||||||||||||||
(In
millions)
|
2009
|
2008
|
2007
(b)
|
2009
|
2008
|
2007
|
||||||||||||||||||
Geographic
|
||||||||||||||||||||||||
Non-U.S.:
|
||||||||||||||||||||||||
France
|
$ | 167.2 | 167.0 | 180.8 | $ | 615.2 | 697.7 | 628.8 | ||||||||||||||||
Venezuela
|
33.2 | 75.0 | 61.3 | 376.1 | 350.9 | 224.9 | ||||||||||||||||||
Brazil
|
96.5 | 29.0 | 32.7 | 257.6 | 193.5 | 160.8 | ||||||||||||||||||
Other
|
372.8 | 280.2 | 296.2 | 1,154.5 | 1,158.8 | 978.4 | ||||||||||||||||||
Subtotal
|
669.7 | 551.2 | 571.0 | 2,403.4 | 2,400.9 | 1,992.9 | ||||||||||||||||||
United
States
|
162.9 | 143.5 | 797.4 | 731.6 | 762.6 | 741.7 | ||||||||||||||||||
$ | 832.6 | 694.7 | 1,368.4 | $ | 3,135.0 | 3,163.5 | 2,734.6 |
(a)
|
Long-lived
assets include property and equipment, net; goodwill; other intangible
assets, net; and deferred charges.
|
(b)
|
Includes
$689.2 million in 2007 related to BHS, principally in the United
States.
|
December
31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Net
assets outside the U.S.
|
||||||||||||
Europe,
Middle East and Africa
|
$ | 300.9 | 365.0 | 349.1 | ||||||||
Latin
America
|
261.1 | 258.5 | 173.9 | |||||||||
Asia
Pacific
|
87.8 | 26.6 | 33.6 | |||||||||
Other
|
34.8 | 30.1 | 48.7 | |||||||||
$ | 684.6 | 680.2 | 605.3 |
December
31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Investments
in unconsolidated equity affiliates
|
||||||||||||
International
|
$ | 10.2 | 13.1 | 12.6 | ||||||||
Other
|
- | - | 4.7 | |||||||||
$ | 10.2 | 13.1 | 17.3 | |||||||||
Share
of earnings of unconsolidated equity affiliates
|
||||||||||||
International
|
$ | 4.5 | 4.7 | 3.0 | ||||||||
Other
|
- | 0.3 | 0.3 | |||||||||
$ | 4.5 | 5.0 | 3.3 |
|
Components
of Net Periodic Pension Cost
|
(In
millions)
|
U.S.
Plans
|
Non-U.S.
Plans
|
Total
|
|||||||||||||||||||||||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
|||||||||||||||||||||||||||
Service
cost
|
$ | - | - | - | $ | 6.1 | 9.7 | 9.2 | $ | 6.1 | 9.7 | 9.2 | ||||||||||||||||||||||||
Interest
cost on PBO
|
47.7 | 45.9 | 44.2 | 12.2 | 12.8 | 10.3 | 59.9 | 58.7 | 54.5 | |||||||||||||||||||||||||||
Return
on assets - expected
|
(61.2 | ) | (58.9 | ) | (53.5 | ) | (9.0 | ) | (11.6 | ) | (10.0 | ) | (70.2 | ) | (70.5 | ) | (63.5 | ) | ||||||||||||||||||
Amortization
of losses
|
9.1 | 1.6 | 13.3 | 3.5 | 3.7 | 3.1 | 12.6 | 5.3 | 16.4 | |||||||||||||||||||||||||||
Settlement
loss
|
0.3 | - | - | - | - | - | 0.3 | - | - | |||||||||||||||||||||||||||
Net
pension cost (credit)
|
$ | (4.1 | ) | (11.4 | ) | 4.0 | $ | 12.8 | 14.6 | 12.6 | $ | 8.7 | 3.2 | 16.6 |
|
Obligations
and Funded Status
|
(In
millions)
|
U.S.
Plans
|
Non-U.S.
Plans
|
Total
|
|||||||||||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||||
PBO
at beginning of year
|
$ | 769.3 | 730.7 | 196.3 | 232.9 | 965.6 | 963.6 | |||||||||||||||||
Service
cost
|
- | - | 6.1 | 9.7 | 6.1 | 9.7 | ||||||||||||||||||
Interest
cost
|
47.7 | 45.9 | 12.2 | 12.8 | 59.9 | 58.7 | ||||||||||||||||||
Plan
participant contributions
|
- | - | 2.8 | 2.9 | 2.8 | 2.9 | ||||||||||||||||||
Plan
settlements
|
(3.5 | ) | - | - | (0.6 | ) | (3.5 | ) | (0.6 | ) | ||||||||||||||
Benefits
paid
|
(36.1 | ) | (35.0 | ) | (8.9 | ) | (8.0 | ) | (45.0 | ) | (43.0 | ) | ||||||||||||
Actuarial
(gains) losses
|
33.1 | 27.7 | (0.6 | ) | (26.6 | ) | 32.5 | 1.1 | ||||||||||||||||
Foreign
currency exchange effects
|
- | - | 15.5 | (26.8 | ) | 15.5 | (26.8 | ) | ||||||||||||||||
PBO
at end of year
|
$ | 810.5 | 769.3 | 223.4 | 196.3 | 1,033.9 | 965.6 | |||||||||||||||||
Fair
value of plan assets at beginning of year
|
$ | 440.1 | 708.8 | 147.9 | 195.9 | 588.0 | 904.7 | |||||||||||||||||
Return
on assets – actual
|
103.5 | (235.6 | ) | 19.2 | (33.3 | ) | 122.7 | (268.9 | ) | |||||||||||||||
Plan
participant contributions
|
- | - | 2.8 | 2.9 | 2.8 | 2.9 | ||||||||||||||||||
Employer
contributions:
|
||||||||||||||||||||||||
Primary
U.S. Plan (a)
|
150.0 | - | - | - | 150.0 | - | ||||||||||||||||||
Other
plans
|
4.2 | 1.9 | 14.8 | 13.8 | 19.0 | 15.7 | ||||||||||||||||||
Plan
settlements
|
(3.5 | ) | - | - | (0.6 | ) | (3.5 | ) | (0.6 | ) | ||||||||||||||
Benefits
paid
|
(36.1 | ) | (35.0 | ) | (8.9 | ) | (8.0 | ) | (45.0 | ) | (43.0 | ) | ||||||||||||
Foreign
currency effects
|
- | - | 13.1 | (22.8 | ) | 13.1 | (22.8 | ) | ||||||||||||||||
Fair
value of plan assets at end of year
|
$ | 658.2 | 440.1 | 188.9 | 147.9 | 847.1 | 588.0 | |||||||||||||||||
Funded
status
|
$ | (152.3 | ) | (329.2 | ) | (34.5 | ) | (48.4 | ) | (186.8 | ) | (377.6 | ) | |||||||||||
Included
in:
|
||||||||||||||||||||||||
Noncurrent asset
|
$ | - | - | (8.2 | ) | - | (8.2 | ) | - | |||||||||||||||
Current liability, included in
accrued liabilities
|
1.7 | 3.6 | 1.2 | 0.6 | 2.9 | 4.2 | ||||||||||||||||||
Noncurrent
liability
|
150.6 | 325.6 | 41.5 | 47.8 | 192.1 | 373.4 | ||||||||||||||||||
Net
pension liability
|
$ | 152.3 | 329.2 | 34.5 | 48.4 | 186.8 | 377.6 |
(a)
|
Comprised
of $92.4 million of cash and $57.6 million of shares of Brink’s common
stock.
|
(In
millions)
|
U.S.
Plans
|
Non-U.S.
Plans
|
Total
|
|||||||||||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||||
Benefit
plan experience loss recognized in
|
||||||||||||||||||||||||
accumulated other comprehensive
income (loss):
|
||||||||||||||||||||||||
Beginning of
year
|
$ | (385.7 | ) | (65.1 | ) | (30.2 | ) | (13.9 | ) | (415.9 | ) | (79.0 | ) | |||||||||||
Net experience gains (losses)
arising during the year
|
9.2 | (322.2 | ) | 10.8 | (18.3 | ) | 20.0 | (340.5 | ) | |||||||||||||||
Reclassification adjustment
for amortization of
|
||||||||||||||||||||||||
experience loss included in
net income
|
9.1 | 1.6 | 2.0 | 2.0 | 11.1 | 3.6 | ||||||||||||||||||
End of year
|
$ | (367.4 | ) | (385.7 | ) | (17.4 | ) | (30.2 | ) | (384.8 | ) | (415.9 | ) | |||||||||||
Benefit
plan prior service cost recognized in
|
||||||||||||||||||||||||
accumulated other comprehensive
income (loss):
|
||||||||||||||||||||||||
Beginning of
year
|
$ | - | - | (10.4 | ) | (12.1 | ) | (10.4 | ) | (12.1 | ) | |||||||||||||
Reclassification adjustment
for amortization of
|
||||||||||||||||||||||||
prior service cost included in
net income
|
- | - | 1.5 | 1.7 | 1.5 | 1.7 | ||||||||||||||||||
End of year
|
$ | - | - | (8.9 | ) | (10.4 | ) | (8.9 | ) | (10.4 | ) |
|
Information
Comparing Plan Assets to Plan
Obligations
|
ABO
Greater
|
Plan
Assets
|
|||||||||||||||||||||||
(In
millions)
|
Than
Plan Assets
|
Greater
Than ABO
|
Total
|
|||||||||||||||||||||
December
31,
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||||
PBO
|
$ | 867.5 | 962.8 | 166.4 | 2.8 | 1,033.9 | 965.6 | |||||||||||||||||
ABO
|
862.5 | 948.3 | 156.2 | 2.5 | 1,018.7 | 950.8 | ||||||||||||||||||
Fair
value of plan assets
|
678.9 | 585.1 | 168.2 | 2.9 | 847.1 | 588.0 |
|
Assumptions
|
U.S.
Plans
|
Non-U.S.
Plans
|
|||||||||||||||||||||||
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
|||||||||||||||||||
Discount
rate:
|
||||||||||||||||||||||||
Pension cost
|
6.6 | % | 6.4 | % | 5.8 | % | 6.2 | % | 5.5 | % | 4.8 | % | ||||||||||||
Benefit obligation at year
end
|
5.9 | % | 6.2 | % | 6.4 | % | 6.2 | % | 6.2 | % | 5.5 | % | ||||||||||||
Expected
return on assets – Pension cost
|
8.8 | % | 8.8 | % | 8.8 | % | 5.8 | % | 5.9 | % | 5.6 | % | ||||||||||||
Average
rate of increase in salaries (a):
|
||||||||||||||||||||||||
Pension cost
|
N/A | N/A | N/A | 4.0 | % | 3.0 | % | 3.0 | % | |||||||||||||||
Benefit obligation at year
end
|
N/A | N/A | N/A | 3.1 | % | 4.0 | % | 3.0 | % |
(a)
|
Salary
scale assumptions are determined through historical experience and vary by
age and industry. The U.S. plan benefits are
frozen. Pension benefits will not increase due to future salary
increases.
|
(In
millions)
|
U.S.
Plans
|
Non-U.S.
Plans
|
Total
|
|||||||||
2010
|
$ | 40.3 | 7.5 | 47.8 | ||||||||
2011
|
42.0 | 8.0 | 50.0 | |||||||||
2012
|
43.6 | 8.6 | 52.2 | |||||||||
2013
|
46.2 | 9.6 | 55.8 | |||||||||
2014
|
47.0 | 9.7 | 56.7 | |||||||||
2015
through 2019
|
265.4 | 66.6 | 332.0 | |||||||||
Total
|
$ | 484.5 | 110.0 | 594.5 |
(In
millions)
|
||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2007
|
|||||||||
U.S.
401(k)
|
$ | 13.4 | 11.7 | 11.8 | ||||||||
Other
Plans
|
3.4 | 1.8 | 1.1 | |||||||||
Total
|
$ | 16.8 | 13.5 | 12.9 |
|
Components
of Net Periodic Postretirement Cost
|
(In
millions)
|
UMWA
plans
|
Black
lung and other plans
|
Total
|
|||||||||||||||||||||||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
|||||||||||||||||||||||||||
Service
cost
|
$ | - | - | - | $ | - | 0.1 | 0.2 | $ | - | 0.1 | 0.2 | ||||||||||||||||||||||||
Interest
cost on APBO
|
25.8 | 31.3 | 31.2 | 2.8 | 3.0 | 3.6 | 28.6 | 34.3 | 34.8 | |||||||||||||||||||||||||||
Return
on assets – expected
|
(22.6 | ) | (38.6 | ) | (38.6 | ) | - | - | - | (22.6 | ) | (38.6 | ) | (38.6 | ) | |||||||||||||||||||||
Amortization
of losses
|
16.7 | 7.9 | 11.4 | 0.1 | 0.3 | 0.6 | 16.8 | 8.2 | 12.0 | |||||||||||||||||||||||||||
Curtailment
gain (a)
|
- | - | - | - | (2.0 | ) | - | - | (2.0 | ) | - | |||||||||||||||||||||||||
Net
periodic postretirement cost
|
$ | 19.9 | 0.6 | 4.0 | $ | 2.9 | 1.4 | 4.4 | $ | 22.8 | 2.0 | 8.4 |
|
Obligations
and Funded Status
|
(In
millions)
|
UMWA
plans
|
Black
lung and other plans
|
Total
|
|||||||||||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||||
APBO
at beginning of year
|
$ | 483.6 | 509.3 | 48.6 | 61.3 | 532.2 | 570.6 | |||||||||||||||||
Service
cost
|
- | - | - | 0.1 | - | 0.1 | ||||||||||||||||||
Interest
cost
|
25.8 | 31.3 | 2.8 | 3.1 | 28.6 | 34.4 | ||||||||||||||||||
Plan
amendments
|
- | - | - | (3.1 | ) | - | (3.1 | ) | ||||||||||||||||
Benefits
paid
|
(39.6 | ) | (37.6 | ) | (7.6 | ) | (7.1 | ) | (47.2 | ) | (44.7 | ) | ||||||||||||
Medicare
subsidy received
|
3.2 | 3.2 | - | - | 3.2 | 3.2 | ||||||||||||||||||
Actuarial
(gain) loss, net
|
(7.5 | ) | (22.6 | ) | 4.5 | (5.0 | ) | (3.0 | ) | (27.6 | ) | |||||||||||||
Foreign
currency exchange effects and other
|
- | - | (1.2 | ) | (0.7 | ) | (1.2 | ) | (0.7 | ) | ||||||||||||||
APBO
at end of year
|
$ | 465.5 | 483.6 | 47.1 | 48.6 | 512.6 | 532.2 | |||||||||||||||||
Fair
value of plan assets at beginning of year
|
$ | 276.1 | 460.3 | - | - | 276.1 | 460.3 | |||||||||||||||||
Employer
contributions
|
- | - | 7.6 | 7.1 | 7.6 | 7.1 | ||||||||||||||||||
Return
on assets – actual
|
67.8 | (149.7 | ) | - | - | 67.8 | (149.7 | ) | ||||||||||||||||
Benefits
paid
|
(39.1 | ) | (37.7 | ) | (7.6 | ) | (7.1 | ) | (46.7 | ) | (44.8 | ) | ||||||||||||
Medicare
subsidy received
|
3.2 | 3.2 | - | - | 3.2 | 3.2 | ||||||||||||||||||
Fair
value of plan assets at end of year
|
$ | 308.0 | 276.1 | - | - | 308.0 | 276.1 | |||||||||||||||||
Funded
status
|
$ | (157.5 | ) | (207.5 | ) | (47.1 | ) | (48.6 | ) | (204.6 | ) | (256.1 | ) | |||||||||||
Included
in:
|
||||||||||||||||||||||||
Current, included in accrued
liabilities
|
$ | - | - | 6.3 | 6.2 | 6.3 | 6.2 | |||||||||||||||||
Noncurrent
|
157.5 | 207.5 | 40.8 | 42.4 | 198.3 | 249.9 | ||||||||||||||||||
Retirement
benefits other than pension liability
|
$ | 157.5 | 207.5 | 47.1 | 48.6 | 204.6 | 256.1 |
(In
millions)
|
UMWA
plans
|
Black
lung and other plans
|
Total
|
|||||||||||||||||||||
Years
Ended December 31,
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||||||
Benefit
plan experience gain (loss) recognized in
|
||||||||||||||||||||||||
accumulated other comprehensive
income (loss):
|
||||||||||||||||||||||||
Beginning of
year
|
$ | (321.0 | ) | (163.2 | ) | $ | (5.2 | ) | (10.5 | ) | $ | (326.2 | ) | (173.7 | ) | |||||||||
Net experience gains (losses)
arising during the year
|
52.7 | (165.7 | ) | (4.5 | ) | 5.0 | 48.2 | (160.7 | ) | |||||||||||||||
Reclassification adjustment
for amortization of
|
||||||||||||||||||||||||
experience losses included in
net income
|
16.7 | 7.9 | 0.4 | 0.3 | 17.1 | 8.2 | ||||||||||||||||||
End of year
|
$ | (251.6 | ) | (321.0 | ) | $ | (9.3 | ) | (5.2 | ) | $ | (260.9 | ) | (326.2 | ) | |||||||||
Benefit
plan prior service credit recognized in
|
||||||||||||||||||||||||
accumulated other comprehensive
income (loss):
|
||||||||||||||||||||||||
Beginning of
year
|
$ | - | - | $ | 2.9 | 1.8 | $ | 2.9 | 1.8 | |||||||||||||||
Prior service credit from plan
amendments
|
||||||||||||||||||||||||
during the
year
|
- | - | - | 3.1 | - | 3.1 | ||||||||||||||||||
Reclassification adjustment
for amortization or curtailment
|
||||||||||||||||||||||||
recognition of prior service
credit included in net income
|
- | - | (0.3 | ) | (2.0 | ) | (0.3 | ) | (2.0 | ) | ||||||||||||||
End of year
|
$ | - | - | $ | 2.6 | 2.9 | $ | 2.6 | 2.9 |
|
Assumptions
|
2009
|
2008
|
2007
|
||||||||||
Weighted-average
discount rate:
|
||||||||||||
Postretirement
cost:
|
||||||||||||
UMWA
plans
|
6.2 | % | 6.4 | % | 5.8 | % | ||||||
Black
lung
|
6.3 | % | 6.1 | % | 5.8 | % | ||||||
Weighted-average
|
6.2 | % | 6.4 | % | 5.8 | % | ||||||
Benefit
obligation at year end:
|
||||||||||||
UMWA
plans
|
5.9 | % | 6.2 | % | 6.4 | % | ||||||
Black
lung
|
5.4 | % | 6.3 | % | 6.1 | % | ||||||
Weighted-average
|
5.9 | % | 6.2 | % | 6.4 | % | ||||||
Expected
return on assets
|
8.8 | % | 8.8 | % | 8.8 | % |
Effect
of Change in Assumed Health Care Trend Rates
|
||||||||
(In
millions)
|
Increase
1%
|
Decrease
1%
|
||||||
Higher
(lower):
|
||||||||
Service and interest cost in
2009
|
$ | 2.4 | (2.1 | ) | ||||
APBO at December 31,
2009
|
46.8 | (40.1 | ) |
Before
Medicare Subsidy
|
Medicare
|
Net
Projected
|
||||||||||||||||||
(In
millions)
|
UMWA
plans
|
Black
lung and other plans
|
Subtotal
|
Subsidy
|
Payments
|
|||||||||||||||
2010
|
$ | 39.2 | 6.3 | 45.5 | (2.8 | ) | 42.7 | |||||||||||||
2011
|
40.2 | 6.0 | 46.2 | (3.0 | ) | 43.2 | ||||||||||||||
2012
|
40.7 | 5.6 | 46.3 | (3.1 | ) | 43.2 | ||||||||||||||
2013
|
41.2 | 5.3 | 46.5 | (3.2 | ) | 43.3 | ||||||||||||||
2014
|
40.9 | 4.9 | 45.8 | (3.3 | ) | 42.5 | ||||||||||||||
2015
through 2019
|
195.7 | 19.7 | 215.4 | (17.2 | ) | 198.2 | ||||||||||||||
Total
|
$ | 397.9 | 47.8 | 445.7 | (32.6 | ) | 413.1 |
Quoted
|
||||||||||||||||||||||||
Prices
in
|
Significant
|
Significant
|
||||||||||||||||||||||
Active
|
Observable
|
Unobservable
|
%
|
%
|
||||||||||||||||||||
Markets
|
Inputs
|
Inputs
|
Total
Fair
|
Actual
|
Target
|
|||||||||||||||||||
(In
millions, except percentages)
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
Value
|
Allocation
|
Allocation
|
||||||||||||||||||
U.S.
Pension Plans
|
||||||||||||||||||||||||
Cash,
cash equivalents and receivables
|
$ | 6.7 | - | - | 6.7 | 1 | - | |||||||||||||||||
Equity
securities:
|
||||||||||||||||||||||||
The
Brink’s Company common stock (a)
|
33.2 | - | - | 33.2 | 5 | - | ||||||||||||||||||
U.S.
large-cap (b)
|
189.7 | - | - | 189.7 | 29 | 30 | ||||||||||||||||||
U.S.
small/mid-cap (b)
|
51.6 | - | - | 51.6 | 8 | 8 | ||||||||||||||||||
International
(b)
|
75.5 | - | - | 75.5 | 11 | 12 | ||||||||||||||||||
Fixed-income
securities:
|
||||||||||||||||||||||||
Long
duration (c)
|
137.8 | - | - | 137.8 | 21 | 23 | ||||||||||||||||||
High
yield (d)
|
51.5 | - | - | 51.5 | 8 | 8 | ||||||||||||||||||
Emerging
markets (e)
|
24.9 | - | - | 24.9 | 4 | 4 | ||||||||||||||||||
Other
types of investments:
|
||||||||||||||||||||||||
Hedge
fund of funds (f)
|
- | - | 87.3 | 87.3 | 13 | 15 | ||||||||||||||||||
Total
|
$ | 570.9 | - | 87.3 | 658.2 | 100 | 100 | |||||||||||||||||
UMWA
Plans
|
||||||||||||||||||||||||
Equity
securities:
|
||||||||||||||||||||||||
U.S.
large-cap (b)
|
$ | 115.7 | - | - | 115.7 | 37 | 37 | |||||||||||||||||
U.S.
small/mid-cap (b)
|
29.9 | - | - | 29.9 | 10 | 9 | ||||||||||||||||||
International (b)
|
48.6 | - | - | 48.6 | 16 | 14 | ||||||||||||||||||
Fixed-income
securities:
|
||||||||||||||||||||||||
Core
fixed income (g)
|
34.7 | - | - | 34.7 | 11 | 13 | ||||||||||||||||||
High
yield (d)
|
26.7 | - | - | 26.7 | 9 | 8 | ||||||||||||||||||
Emerging
markets (e)
|
12.4 | - | - | 12.4 | 4 | 4 | ||||||||||||||||||
Other
types of investments:
|
||||||||||||||||||||||||
Hedge
fund of funds (f)
|
- | - | 40.0 | 40.0 | 13 | 15 | ||||||||||||||||||
Total
|
$ | 268.0 | - | 40.0 | 308.0 | 100 | 100 |
|
(a)
|
An
independent fiduciary makes all investment decisions regarding these
shares and, as a result, the investment is excluded from our target asset
allocation.
|
|
(b)
|
These
categories include actively managed mutual funds 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.
|
|
(c)
|
This
category represents an actively managed mutual fund that seeks to
duplicate the risk and return characteristics of a long-term fixed-income
securities portfolio with an approximate duration of 10 to 13 years by
using a long duration bond portfolio, including interest-rate swap
agreements and Treasury futures contracts, for the purpose of managing the
overall duration of this fund.
|
|
(d)
|
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.
|
(e)
|
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.
|
|
(f)
|
This
category represents an actively managed mutual fund that invests in
different hedge-fund investments, with various strategies. The
fund holds approximately 40 separate hedge-fund
investments. Strategies included (1) long-short equity, (2)
event-driven and distressed-debt, (3) global macro, (4) credit hedging,
(5) multi-strategy, and (6) fixed-income arbitrage. Its
investment objective is to seek to achieve an attractive risk-adjusted
return with moderate volatility and moderate directional market exposure
over a full market cycle.
|
|
(g)
|
This
category represents an actively managed mutual fund that invests in funds
with investments in mortgage backed securities, corporate bonds and
investment grade securities. The category seeks to provide
returns and a risk profile of the Barclays Capital U.S. Aggregate Bond
Index.
|
Quoted
|
Significant
|
Significant
|
||||||||||||||||||||||
Prices
in
|
Observable
|
Unobservable
|
%
|
%
|
||||||||||||||||||||
Active
Markets
|
Inputs
|
Inputs
|
Total
Fair
|
Actual
|
Target
|
|||||||||||||||||||
(In
millions, except percentages)
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
Value
|
Allocation
|
Allocation
|
||||||||||||||||||
Non-U.S.
Pension Plans
|
||||||||||||||||||||||||
Cash
and cash equivalents
|
$ | 0.5 | - | - | 0.5 | - | - | |||||||||||||||||
Equity
securities:
|
||||||||||||||||||||||||
U.S.
equity funds (a)
|
- | 22.5 | - | 22.5 | ||||||||||||||||||||
Canadian
equity funds (a)
|
- | 22.5 | - | 22.5 | ||||||||||||||||||||
European
equity funds (a)
|
- | 14.9 | - | 14.9 | ||||||||||||||||||||
Asia-pacific
equity funds (a)
|
- | 2.5 | - | 2.5 | ||||||||||||||||||||
Emerging
markets(a)
|
- | 4.5 | - | 4.5 | ||||||||||||||||||||
Other
non-U.S. equity funds (a)
|
- | 9.2 | - | 9.2 | ||||||||||||||||||||
Total
equity securities
|
- | 76.1 | - | 76.1 | 40 | 47 | ||||||||||||||||||
Fixed-income
securities:
|
||||||||||||||||||||||||
Global
credit (b)
|
- | 22.7 | - | 22.7 | ||||||||||||||||||||
Canadian
fixed-income funds (c)
|
- | 14.2 | - | 14.2 | ||||||||||||||||||||
European
fixed-income funds (d)
|
- | 3.4 | - | 3.4 | ||||||||||||||||||||
High-yield (e)
|
- | 7.6 | - | 7.6 | ||||||||||||||||||||
Emerging
markets (f)
|
- | 4.2 | - | 4.2 | ||||||||||||||||||||
Long-duration
(g)
|
- | 48.4 | - | 48.4 | ||||||||||||||||||||
Total
fixed-income securities
|
- | 100.5 | - | 100.5 | 53 | 53 | ||||||||||||||||||
Other
types of investments:
|
||||||||||||||||||||||||
Convertible
securities (h)
|
- | 6.3 | - | 6.3 | ||||||||||||||||||||
Other
|
- | 4.0 | 1.5 | 5.5 | ||||||||||||||||||||
Total
other types of investments
|
- | 10.3 | 1.5 | 11.8 | 7 | - | ||||||||||||||||||
Total
|
$ | 0.5 | 186.9 | 1.5 | 188.9 | 100 | 100 |
(a)
|
These
categories are comprised of equity index actively managed funds that track
various indices such as S&P 500 Composite Total Return Index, Russell
1000 and 2000 Indices, MSCI Europe Ex-UK Index, S&P/TSX Total Return
Index, MSCI EAFE Index and others.
|
|
(b)
|
This
category represents investment-grade corporate bonds of U.S. and European
issuers from diverse industries.
|
|
(c)
|
This
category seeks to achieve a return that exceeds the Scotia Capital Markets
Universe Bond Index.
|
|
(d)
|
This
category is 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.
|
|
(e)
|
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.
|
|
(f)
|
This
category consists of a diversified portfolio of listed and unlisted debt
securities issued by governments, financial institutions, companies or
other entities domiciled in emerging market
countries.
|
|
(g)
|
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.
|
|
(h)
|
This
category invests in convertible securities of global issuers from diverse
industries.
|
Year
Ended
|
||||||||||||
December
31, 2009
|
||||||||||||
(In
millions)
|
U.S.
Pension Plans
|
UMWA
Plans
|
Non-U.S.
Pension Plans
|
|||||||||
Beginning
balance
|
$ | - | - | 3.3 | ||||||||
Actual
return on plan assets:
|
||||||||||||
Relating
to assets still held at the reporting date
|
3.5 | 1.8 | (1.8 | ) | ||||||||
Relating
to assets sold during the period
|
- | - | - | |||||||||
Purchases,
sales and settlements
|
83.8 | 38.2 | - | |||||||||
Transfers
in and/or out of Level 3
|
- | - | - | |||||||||
Ending
balance
|
$ | 87.3 | 40.0 | 1.5 |
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Income
from continuing operations before income taxes
|
||||||||||||
U.S.
|
$ | 37.0 | 25.8 | 25.7 | ||||||||
Foreign
|
129.3 | 198.8 | 135.0 | |||||||||
$ | 166.3 | 224.6 | 160.7 | |||||||||
Income
tax expense (benefit) from continuing operations
|
||||||||||||
Current
|
||||||||||||
U.S.
federal
|
$ | (29.1 | ) | 2.2 | (4.3 | ) | ||||||
State
|
(0.8 | ) | 1.6 | 1.4 | ||||||||
Foreign
|
59.8 | 69.2 | 52.5 | |||||||||
29.9 | 73.0 | 49.6 | ||||||||||
Deferred
|
||||||||||||
U.S.
federal
|
(72.3 | ) | 3.9 | 14.4 | ||||||||
State
|
(8.1 | ) | 4.6 | (0.9 | ) | |||||||
Foreign
|
(10.6 | ) | (28.5 | ) | (3.6 | ) | ||||||
(91.0 | ) | (20.0 | ) | 9.9 | ||||||||
$ | (61.1 | ) | 53.0 | 59.5 |
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Comprehensive
provision (benefit) for income taxes allocable to
|
||||||||||||
Continuing
operations
|
$ | (61.1 | ) | 53.0 | 59.5 | |||||||
Discontinued
operations
|
2.3 | 45.8 | 41.5 | |||||||||
Other
comprehensive income (loss)
|
10.6 | (33.3 | ) | 49.7 | ||||||||
Shareholders’
equity
|
(0.1 | ) | (13.3 | ) | (12.9 | ) | ||||||
$ | (48.3 | ) | 52.2 | 137.8 |
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
U.S.
federal tax rate
|
35.0 | % | 35.0 | % | 35.0 | % | ||||||
Increases
(reductions) in taxes due to:
|
||||||||||||
Foreign
income taxes
|
(3.5 | ) | (5.8 | ) | (1.4 | ) | ||||||
Taxes on undistributed earnings of
foreign affiliates
|
(1.1 | ) | 1.5 | 0.9 | ||||||||
State income taxes,
net
|
0.2 | (0.5 | ) | 0.2 | ||||||||
Medicare subsidy for retirement
plans
|
(0.9 | ) | (0.8 | ) | (1.2 | ) | ||||||
Adjustments to valuation
allowances
|
(68.2 | ) | (6.1 | ) | 4.0 | |||||||
Nondeductible
repatriation charge
|
4.7 | - | - | |||||||||
Nontaxable
India gain
|
(2.9 | ) | - | - | ||||||||
Other
|
- | 0.3 | (0.5 | ) | ||||||||
Actual
income tax rate on continuing operations
|
(36.7 | )% | 23.6 | % | 37.0 | % |
December
31,
|
||||||||
(In
millions)
|
2009
|
2008
|
||||||
Deferred
tax assets
|
||||||||
Retirement
benefits other than pensions
|
$ | 81.9 | 106.9 | |||||
Pension
liabilities
|
70.2 | 143.4 | ||||||
Workers’
compensation and other claims
|
37.0 | 35.9 | ||||||
Property
and equipment, net
|
1.4 | 17.7 | ||||||
Other
assets and liabilities
|
70.0 | 68.8 | ||||||
Net
operating loss carryforwards
|
47.3 | 35.8 | ||||||
Alternative
minimum and other tax credits
|
28.5 | 2.2 | ||||||
Subtotal
|
336.3 | 410.7 | ||||||
Valuation
allowances
|
(45.4 | ) | (183.6 | ) | ||||
Total
deferred tax assets
|
290.9 | 227.1 | ||||||
Deferred
tax liabilities
|
||||||||
Property
and equipment, net
|
6.0 | - | ||||||
Other
assets and miscellaneous
|
24.4 | 16.4 | ||||||
Deferred
tax liabilities
|
30.4 | 16.4 | ||||||
Net
deferred tax asset
|
$ | 260.5 | 210.7 | |||||
Included
in:
|
||||||||
Current assets
|
$ | 38.5 | 31.1 | |||||
Noncurrent assets
|
254.1 | 202.6 | ||||||
Current liabilities, included in
accrued liabilities
|
(1.6 | ) | (1.5 | ) | ||||
Noncurrent
liabilities
|
(30.5 | ) | (21.5 | ) | ||||
Net
deferred tax asset
|
$ | 260.5 | 210.7 |
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Valuation
allowances:
|
||||||||||||
Beginning of
year
|
$ | 183.6 | 56.0 | 54.3 | ||||||||
Expiring tax
credits
|
(0.7 | ) | (0.7 | ) | (0.9 | ) | ||||||
Acquisitions and
dispositions
|
0.3 | (0.1 | ) | (0.8 | ) | |||||||
Changes in judgment about deferred
tax assets (a)
|
(119.8 | ) | (11.0 | ) | 2.7 | |||||||
Other changes in deferred tax
assets, charged to:
|
||||||||||||
Income from continuing
operations
|
7.1 | (2.2 | ) | (1.1 | ) | |||||||
Income from discontinued
operations
|
1.7 | - | - | |||||||||
Other comprehensive income
(loss) (b)
|
(28.3 | ) | 148.2 | (3.7 | ) | |||||||
Foreign currency exchange
effects
|
1.5 | (6.6 | ) | 5.5 | ||||||||
End of year
|
$ | 45.4 | 183.6 | 56.0 |
(a)
|
Changes
in judgment about valuation allowances are based on a recognition
threshold of “more-likely-than-not.”Amounts are based on beginning-of-year
balances of deferred tax assets that could potentially be realized in
future years. Amounts are recognized in income from
continuing operations. In 2009, includes $117.8 million related
to U.S federal and state income
taxes.
|
(b)
|
In
2008, includes $145.5 million related to U.S. retirement plans’ net
experience losses incurred in 2008 that were not deemed to be more likely
than not of being realized. In 2009, includes a $25.4 million
reversal related to net experience gains of U.S. retirement plans
recognized in 2009.
|
(In
millions)
|
Federal
|
State
|
Foreign
|
Total
|
||||||||||||||
Year
of expiration:
|
||||||||||||||||||
2010-2014 | $ | - | 0.7 | 4.4 | 5.1 | |||||||||||||
2015-2019 | - | 0.5 | 0.7 | 1.2 | ||||||||||||||
2020 and
thereafter
|
- | 7.9 | - | 7.9 | ||||||||||||||
Unlimited
|
- | - | 33.1 | 33.1 | ||||||||||||||
$ | - | 9.1 | 38.2 | 47.3 |
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Uncertain
tax positions:
|
||||||||||||
Beginning of
year
|
$ | 19.3 | 25.5 | 17.3 | ||||||||
Increases related to prior-year
tax positions
|
1.0 | 0.1 | 0.8 | |||||||||
Decreases related to prior-year
tax positions
|
(1.0 | ) | (0.6 | ) | (1.6 | ) | ||||||
Increases related to
current-year tax positions
|
1.3 | 2.6 | 10.5 | |||||||||
Settlements
|
(0.4 | ) | (1.3 | ) | (0.2 | ) | ||||||
Effect of the expiration of
statutes of limitation
|
(1.2 | ) | (2.0 | ) | (1.3 | ) | ||||||
Effect of BHS spin
off
|
- | (5.0 | ) | - | ||||||||
End of year
|
$ | 19.0 | 19.3 | 25.5 |
December
31,
|
||||||||
(In
millions)
|
2009
|
2008
|
||||||
Land
|
$ | 32.4 | 33.4 | |||||
Buildings
|
178.9 | 193.5 | ||||||
Leasehold
improvements
|
181.8 | 168.9 | ||||||
Vehicles
|
297.2 | 263.4 | ||||||
Capitalized
software (a)
|
109.0 | 105.5 | ||||||
Other
machinery and equipment
|
535.0 | 491.2 | ||||||
1,334.3 | 1,255.9 | |||||||
Accumulated
depreciation and amortization
|
(784.8 | ) | (721.9 | ) | ||||
Property
and equipment, net
|
$ | 549.5 | 534.0 |
Estimated
Fair
|
||||
Value
at
|
||||
(In
millions)
|
January
8, 2009
|
|||
Accounts
receivable
|
$ | 6.3 | ||
Other
current assets
|
4.9 | |||
Property
and equipment, net
|
5.3 | |||
Identifiable
intangible assets
|
19.2 | |||
Goodwill
(a)
|
24.4 | |||
Other
noncurrent assets
|
1.1 | |||
Current
liabilities
|
(11.1 | ) | ||
Noncurrent
liabilities
|
(2.5 | ) | ||
Total
net assets acquired
|
$ | 47.6 |
(a)
|
Consists
of intangible assets that do not qualify for separate recognition,
combined with synergies expected from integrating Sebival’s operations
into our existing Brazilian operations. All of the goodwill has
been assigned to the Latin America reporting unit and is expected to be
deductible for tax purposes.
|
Estimated
Fair
|
||||
Value
at
|
||||
(In
millions)
|
September
1, 2009
|
|||
Total
purchase consideration:
|
||||
Cash
paid for 38% of shares
|
$ | 22.2 | ||
Fair
value of previously held 40% noncontrolling interest
|
20.0 | |||
Liability
to purchase remaining 22% of shares
|
12.8 | |||
Fair
value of purchase consideration
|
$ | 55.0 | ||
Accounts
receivable
|
$ | 3.2 | ||
Other
current assets
|
10.1 | |||
Property
and equipment, net
|
2.5 | |||
Identifiable
intangible assets
|
26.6 | |||
Goodwill
(a)
|
23.9 | |||
Current
liabilities
|
(2.0 | ) | ||
Noncurrent
liabilities
|
(9.3 | ) | ||
Total
net assets acquired
|
$ | 55.0 |
(a)
|
Consists
of intangible assets that do not qualify for separate recognition along
with expected benefits from combining Arya into Brink’s
operations. All of the goodwill has been assigned to the
Asia-Pacific reporting unit and is not expected to be deductible for tax
purposes.
|
(In
millions)
|
Revenue
|
Net
income attributable to Brink’s
|
||||||
Actual
results for the year ended December 31, 2009 (a)
|
||||||||
Sebival
|
$ | 74.4 | 8.0 | |||||
Arya
|
8.0 | - | ||||||
Pro
forma results of The Brink’s Company (b)
|
||||||||
Year ended December 31,
2009
|
$ | 3,147.3 | 186.8 | |||||
Year ended December 31,
2008
|
3,257.8 | 188.0 |
(a)
|
Actual
results of Sebival and Arya included in our 2009 consolidated results of
operations from the dates of
acquisition.
|
(b)
|
Pro
forma results of The Brink’s Company, assuming the Sebival and Arya
acquisitions occurred on January 1, 2008. Pro forma net income
attributable to Brink’s does not include a gain on acquiring a controlling
interest in Arya.
|
Years
Ended December 31,
|
||||||||
(In
millions)
|
2009
|
2008
|
||||||
Goodwill:
|
||||||||
Beginning of
year
|
$ | 139.6 | 141.3 | |||||
Acquisitions (see note
6)
|
58.2 | 8.1 | ||||||
Adjustments (a)
|
(0.2 | ) | 1.8 | |||||
Foreign currency exchange
effects
|
16.1 | (11.6 | ) | |||||
End of year
|
$ | 213.7 | 139.6 |
(a)
|
Includes
purchase accounting adjustment occurring in the year following the
acquisition and adjustments to valuation allowances for deferred tax
assets.
|
December
31,
|
||||||||
(In
millions)
|
2009
|
2008
|
||||||
Finite-lived
intangible assets
|
$ | 98.6 | 39.2 | |||||
Accumulated
amortization
|
(29.2 | ) | (18.1 | ) | ||||
Intangible
assets, net
|
$ | 69.4 | 21.1 |
(In
millions)
|
2010
|
2011
|
2012
|
2013
|
2014
|
|||||||||||||||
Amortization
expense
|
$ | 9.9 | 10.1 | 9.0 | 5.3 | 3.8 |
December
31,
|
||||||||
(In
millions)
|
2009
|
2008
|
||||||
Intangible
assets, net (see note 7)
|
$ | 69.4 | 21.1 | |||||
Investment
in unconsolidated entities:
|
||||||||
Cost method
|
23.4 | 23.4 | ||||||
Equity method
|
10.2 | 13.1 | ||||||
Marketable
securities (a)
|
22.7 | 20.1 | ||||||
Other
|
46.7 | 29.5 | ||||||
Other
assets
|
$ | 172.4 | 107.2 |
(a)
|
We
recorded an other-than-temporary impairment of $7.1 million on our
marketable securities in 2008, primarily due to the length of time and
severity of the decrease in fair value below
cost.
|
Gross
Unrealized
|
Gross
Unrealized
|
|||||||||||||||
(In
millions)
|
Cost
(a)
|
Gains
|
Losses
(b)
|
Fair
Value
|
||||||||||||
December
31, 2009
|
||||||||||||||||
Mutual
funds
|
$ | 15.0 | 2.6 | - | 17.6 | |||||||||||
Non-U.S.
debt securities
|
3.7 | - | (0.6 | ) | 3.1 | |||||||||||
Equity
securities
|
0.2 | 1.8 | - | 2.0 | ||||||||||||
Marketable
securities
|
$ | 18.9 | 4.4 | (0.6 | ) | 22.7 | ||||||||||
December
31, 2008
|
||||||||||||||||
Mutual
funds
|
$ | 19.2 | - | - | 19.2 | |||||||||||
Equity
securities
|
- | 0.9 | - | 0.9 | ||||||||||||
Marketable
securities
|
$ | 19.2 | 0.9 | - | 20.1 |
(a)
|
Cost
adjusted for impairment on mutual funds in
2008.
|
(b)
|
There
were no marketable securities in an unrealized loss position longer than a
year.
|
December
31,
|
December
31,
|
|||||||||||||||
2009
|
2008
|
|||||||||||||||
(In
millions)
|
Fair
Value
|
Carrying
Value
|
Fair
Value
|
Carrying
Value
|
||||||||||||
DTA
bonds
|
$ | 42.7 | 43.2 | 44.5 | 43.2 |
December
31,
|
||||||||
(In
millions)
|
2009
|
2008
|
||||||
Payroll
and other employee liabilities
|
$ | 135.0 | 141.0 | |||||
Taxes,
except income taxes
|
81.7 | 83.7 | ||||||
Workers’
compensation and other claims
|
25.4 | 23.2 | ||||||
Retirement
benefits (see note 3)
|
9.2 | 10.4 | ||||||
Other
|
113.0 | 102.2 | ||||||
Accrued
liabilities
|
$ | 364.3 | 360.5 |
December
31,
|
||||||||
(In
millions)
|
2009
|
2008
|
||||||
Workers’
compensation and other claims
|
$ | 46.3 | 49.0 | |||||
Other
|
124.2 | 108.6 | ||||||
Other
liabilities
|
$ | 170.5 | 157.6 |
December
31,
|
||||||||
(In
millions)
|
2009
|
2008
|
||||||
Bank
credit facilities:
|
||||||||
Revolving Facility (year-end
weighted average interest
|
||||||||
rate of 0.6% in 2009
and 1.6% in 2008)
|
$ | 98.0 | 106.8 | |||||
Other non-U.S. dollar-denominated
facilities (year-end weighted
|
||||||||
average interest rate of 4.4 % in
2009 and 5.2% in 2008)
|
14.4 | 13.3 | ||||||
Dominion
Terminal Associates 6.0% bonds, due 2033
|
43.2 | 43.2 | ||||||
Capital
leases (average rates: 5.3% in 2009 and 7.5% in 2008)
|
32.8 | 18.1 | ||||||
Total long-term
debt
|
$ | 188.4 | 181.4 | |||||
Included
in:
|
||||||||
Current
liabilities
|
$ | 16.1 | 8.4 | |||||
Noncurrent
liabilities
|
172.3 | 173.0 | ||||||
Total long-term
debt
|
$ | 188.4 | 181.4 |
(In
millions)
|
Capital
leases
|
Other
long-term debt
|
Total
|
|||||||||
2010
|
$ | 13.8 | 2.3 | 16.1 | ||||||||
2011
|
6.0 | 106.3 | 112.3 | |||||||||
2012
|
3.5 | 1.5 | 5.0 | |||||||||
2013
|
2.5 | 1.2 | 3.7 | |||||||||
2014
|
1.9 | 1.0 | 2.9 | |||||||||
Later
years
|
5.1 | 43.3 | 48.4 | |||||||||
Total
|
$ | 32.8 | 155.6 | 188.4 |
December
31,
|
||||||||
(In
millions)
|
2009
|
2008
|
||||||
Asset
class:
|
||||||||
Buildings
|
$ | 15.2 | 12.9 | |||||
Vehicles
|
37.4 | 34.1 | ||||||
Machinery and
equipment
|
11.4 | 7.2 | ||||||
64.0 | 54.2 | |||||||
Less: accumulated
amortization
|
(23.1 | ) | (29.1 | ) | ||||
Total
|
$ | 40.9 | 25.1 |
December
31,
|
||||||||
(In
millions)
|
2009
|
2008
|
||||||
Trade
|
$ | 390.9 | 426.1 | |||||
Other
|
43.8 | 31.4 | ||||||
434.7 | 457.5 | |||||||
Allowance
for doubtful accounts
|
(7.1 | ) | (6.8 | ) | ||||
Accounts
receivable, net
|
$ | 427.6 | 450.7 |
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Allowance
for doubtful accounts:
|
||||||||||||
Beginning of
year
|
$ | 6.8 | 10.8 | 11.6 | ||||||||
Provision for uncollectible
accounts receivable:
|
||||||||||||
Continuing
operations
|
1.2 | 3.2 | (0.1 | ) | ||||||||
Discontinued
operations
|
- | 8.7 | 11.0 | |||||||||
Write offs less
recoveries
|
(1.2 | ) | (10.4 | ) | (12.6 | ) | ||||||
Charge to other
accounts
|
- | 0.4 | 0.4 | |||||||||
Spin-off of BHS (see note
17)
|
- | (4.5 | ) | - | ||||||||
Foreign currency exchange
effects
|
0.3 | (1.4 | ) | 0.5 | ||||||||
End of year
|
$ | 7.1 | 6.8 | 10.8 |
(In
millions)
|
Facilities
|
Vehicles
|
Other
|
Total
|
||||||||||||
2010
|
$ | 48.0 | 25.8 | 5.4 | 79.2 | |||||||||||
2011
|
39.5 | 19.1 | 4.1 | 62.7 | ||||||||||||
2012
|
32.1 | 13.9 | 2.7 | 48.7 | ||||||||||||
2013
|
20.8 | 9.7 | 0.9 | 31.4 | ||||||||||||
2014
|
17.6 | 6.8 | 0.5 | 24.9 | ||||||||||||
Later
years
|
40.2 | 4.9 | 1.1 | 46.2 | ||||||||||||
$ | 198.2 | 80.2 | 14.7 | 293.1 |
Weighed-Average
|
Aggregate
|
|||||||||||||||
Shares
|
Weighted-
Average
|
Remaining
Contractual
|
Intrinsic
Value
|
|||||||||||||
(in
thousands)
|
Exercise
Price Per Share
|
Term
(in years)
|
(in
millions)
|
|||||||||||||
Outstanding
at December 31, 2006
|
2,130 | $ | 36.77 | |||||||||||||
Granted
|
636 | 63.60 | ||||||||||||||
Exercised
|
(489 | ) | 25.78 | |||||||||||||
Forfeited
or expired
|
(31 | ) | 50.63 | |||||||||||||
Outstanding
at December 31, 2007
|
2,246 | 46.57 | ||||||||||||||
Granted
|
541 | 64.24 | ||||||||||||||
Exercised
|
(559 | ) | 33.34 | |||||||||||||
Forfeited
or expired
|
(35 | ) | 53.54 | |||||||||||||
Cancelled
awards (a)
|
(389 | ) | 58.32 | |||||||||||||
Adjustment
due to spin-off (a)
|
1,518 | - | ||||||||||||||
Outstanding
at December 31, 2008
|
3,322 | 28.95 | ||||||||||||||
Granted
|
289 | 27.59 | ||||||||||||||
Exercised
|
(79 | ) | 16.50 | |||||||||||||
Forfeited
or expired
|
(97 | ) | 34.08 | |||||||||||||
Outstanding
at December 31, 2009
|
3,435 | $ | 28.98 | 3.3 | $ | 5.4 | ||||||||||
Of
the above, as of December 31, 2009:
|
||||||||||||||||
Exercisable
|
2,428 | $ | 27.41 | 2.7 | $ | 5.4 | ||||||||||
Expected to vest in future periods
(b)
|
974 | $ | 32.80 | 4.6 | $ | - |
(a)
|
Related
to BHS employees and directors. See note
17.
|
(b)
|
The
number of options expected to vest takes into account an estimate of
expected forfeitures.
|
Options
Granted
|
||||||||||||
Years
Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Number
of shares underlying options, in thousands
|
289 | 541 | 636 | |||||||||
Weighted-average
exercise price per share
|
$ | 27.59 | 64.24 | 63.60 | ||||||||
Assumptions
used to estimate fair value:
|
||||||||||||
Expected dividend yield
(a):
|
||||||||||||
Weighted-average
|
1.4 | % | 0.6 | % | 0.6 | % | ||||||
Expected volatility
(b):
|
||||||||||||
Weighted-average
|
36 | % | 26 | % | 27 | % | ||||||
Range
|
35%-39 | % | 26%-27 | % | 26%-31 | % | ||||||
Risk-free interest rate
(c):
|
||||||||||||
Weighted-average
|
1.8 | % | 2.8 | % | 4.9 | % | ||||||
Range
|
0.9%-2.4 | % | 2.0%-3.1 | % | 4.9%-5.0 | % | ||||||
Expected term in years
(d):
|
||||||||||||
Weighted-average
|
3.8 | 3.6 | 3.8 | |||||||||
Range
|
1.9-5.3 | 2.1-5.4 | 2.1-6.1 | |||||||||
Weighted-average
fair value estimates at grant date:
|
||||||||||||
In millions
|
$ | 2.1 | 7.8 | 10.7 | ||||||||
Fair value per
share
|
$ | 7.24 | 14.39 | 16.84 |
(a)
|
The
expected dividend yield is the calculated yield on Brink’s common stock at
the time of the grant.
|
(b)
|
The
expected volatility was estimated after reviewing the historical
volatility of our stock using daily close
prices.
|
(d)
|
The
expected term of the options was based on historical option exercise data,
option expiration and post-vesting cancellation
behavior.
|
Number
of shares
|
Weighted-Average
|
|||||||||||||||
2005
|
Directors’
|
Grant-Date
|
||||||||||||||
(in
thousands of shares, except per share amounts)
|
Plan
|
Plan
|
Total
|
Fair
Value (a)
|
||||||||||||
Balance
as of January 1, 2008
|
- | - | - | $ | - | |||||||||||
Granted
|
30.3 | 13.0 | 43.3 | 66.27 | ||||||||||||
Cancelled
awards due to BHS spin off
|
- | (4.7 | ) | (4.7 | ) | 63.22 | ||||||||||
Adjustment
due to spin-off of BHS
|
25.3 | 7.0 | 32.3 | - | ||||||||||||
Balance as of December 31,
2008
|
55.6 | 15.3 | 70.9 | 36.27 | ||||||||||||
Granted
|
178.4 | 22.7 | 201.1 | 26.90 | ||||||||||||
Cancelled
awards
|
(1.3 | ) | - | (1.3 | ) | 26.80 | ||||||||||
Vested
|
(18.5 | ) | (15.3 | ) | (33.8 | ) | 35.71 | |||||||||
Balance as of December 31,
2009
|
214.2 | 22.7 | 236.9 | $ | 28.45 |
(a)
|
Fair
value is measured at the date of grant based on the average of the high
and low per share quoted sales price of Brink’s common stock, adjusted for
a discount on units that do not receive or accrue
dividends.
|
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Weighted-average
shares
|
||||||||||||
Basic
(a)
|
47.2 | 46.3 | 46.5 | |||||||||
Effect
of dilutive stock awards
|
0.3 | 0.4 | 0.5 | |||||||||
Diluted
|
47.5 | 46.7 | 47.0 | |||||||||
Antidilutive
stock awards excluded from denominator
|
2.5 | 0.7 | 0.4 |
(a)
|
We
have deferred compensation plans for directors and certain of our
employees. 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 units credited to employees and
directors under the deferred compensation plans. Accordingly,
included in basic shares are weighted-average units of 0.8 million in
2009, 0.7 million in 2008 and 1.0 million in
2007.
|
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Brink’s
Home Security Holdings, Inc. (“BHS”):
|
||||||||||||
Income from operations before tax
(a)
|
$ | - | 105.4 | 112.9 | ||||||||
Expense associated with the
spin-off
|
- | (13.0 | ) | - | ||||||||
United
Kingdom domestic cash handling operations:
|
||||||||||||
Gain on sale
|
- | - | 1.5 | |||||||||
Loss from operations before tax
(b)
|
- | - | (13.9 | ) | ||||||||
Adjustments
to contingencies of former operations:
|
||||||||||||
Gain from FBLET refunds (see note
21)
|
19.7 | - | - | |||||||||
BAX Global indemnification (see
note 21)
|
(13.2 | ) | - | - | ||||||||
Other
|
0.3 | 4.9 | (0.1 | ) | ||||||||
Income
from discontinued operations before income taxes
|
6.8 | 97.3 | 100.4 | |||||||||
Provision
for income taxes
|
2.3 | 45.8 | 41.5 | |||||||||
Income
from discontinued operations
|
$ | 4.5 | 51.5 | 58.9 |
(a)
|
Revenues
of BHS were $442.4 million in 2008 (partial year) and $484.4 million in
2007.
|
(b)
|
Revenues
of the United Kingdom domestic cash handling operations were $28.9 million
in 2007.
|
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Cash
paid for:
|
||||||||||||
Interest
|
$ | 10.3 | 12.1 | 10.1 | ||||||||
Income taxes, net
|
12.6 | 69.2 | 65.5 |
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Foreign
currency transaction losses
|
$ | (41.4 | ) | (18.1 | ) | (9.5 | ) | |||||
Gain
on acquiring control of equity method affiliates
|
14.9 | - | - | |||||||||
Gains
on sales of property and other assets
|
9.4 | 13.1 | 4.6 | |||||||||
Royalty
income
|
8.6 | 2.8 | 1.3 | |||||||||
Share
in earnings of equity affiliates
|
4.5 | 5.0 | 3.3 | |||||||||
Impairment
losses
|
(2.7 | ) | (1.9 | ) | (2.5 | ) | ||||||
Other
|
3.2 | 3.7 | 3.9 | |||||||||
Other
operating income (expense)
|
$ | (3.5 | ) | 4.6 | 1.1 |
Years
Ended December 31,
|
||||||||||||
(In
millions)
|
2009
|
2008
|
2007
|
|||||||||
Interest
income
|
$ | 10.8 | 15.0 | 8.7 | ||||||||
Other-than-temporary
impairment of marketable securities
|
- | (7.1 | ) | - | ||||||||
Other,
net
|
- | 0.2 | 1.8 | |||||||||
Total
|
$ | 10.8 | 8.1 | 10.5 |
2009
Quarters
|
2008
Quarters
|
|||||||||||||||||||||||||||||||
(In
millions, except per share amounts)
|
1st
|
2nd
|
3rd
|
4th
|
1st
|
2nd
|
3rd
|
4th
|
||||||||||||||||||||||||
Revenues
|
$ | 732.5 | 751.9 | 801.8 | 848.8 | $ | 792.8 | 797.8 | 813.4 | 759.5 | ||||||||||||||||||||||
Segment
operating profit
|
52.4 | 28.9 | 61.7 | 70.4 | 82.0 | 52.6 | 68.1 | 69.2 | ||||||||||||||||||||||||
Operating
profit
|
41.7 | 26.7 | 60.9 | 37.5 | 66.5 | 42.8 | 49.8 | 69.4 | ||||||||||||||||||||||||
Amounts
attributable to Brink’s:
|
||||||||||||||||||||||||||||||||
Income
(loss) from:
|
||||||||||||||||||||||||||||||||
Continuing
operations
|
$ | 22.2 | 16.0 | 33.4 | 124.1 | $ | 32.9 | 30.7 | 29.5 | 38.7 | ||||||||||||||||||||||
Discontinued
operations
|
0.8 | 4.3 | 1.0 | (1.6 | ) | 17.2 | 18.0 | 18.5 | (2.2 | ) | ||||||||||||||||||||||
Net
income attributable to Brink’s
|
$ | 23.0 | 20.3 | 34.4 | 122.5 | $ | 50.1 | 48.7 | 48.0 | 36.5 | ||||||||||||||||||||||
Depreciation
and amortization
|
$ | 30.7 | 32.8 | 33.7 | 37.9 | $ | 29.8 | 31.3 | 31.5 | 29.7 | ||||||||||||||||||||||
Capital
expenditures
|
29.5 | 45.0 | 38.0 | 58.1 | 31.5 | 38.9 | 49.0 | 45.9 | ||||||||||||||||||||||||
Earnings
(loss) per share attributable to Brink’s
|
||||||||||||||||||||||||||||||||
common
shareholders:
|
||||||||||||||||||||||||||||||||
Basic:
|
||||||||||||||||||||||||||||||||
Continuing
operations
|
$ | 0.48 | 0.35 | 0.70 | 2.54 | $ | 0.71 | 0.66 | 0.64 | 0.83 | ||||||||||||||||||||||
Discontinued
operations
|
0.02 | 0.09 | 0.02 | (0.03 | ) | 0.37 | 0.39 | 0.40 | (0.04 | ) | ||||||||||||||||||||||
Net income
|
$ | 0.50 | 0.44 | 0.72 | 2.51 | $ | 1.08 | 1.06 | 1.04 | 0.79 | ||||||||||||||||||||||
Diluted:
|
||||||||||||||||||||||||||||||||
Continuing
operations
|
$ | 0.48 | 0.34 | 0.70 | 2.53 | $ | 0.70 | 0.66 | 0.64 | 0.83 | ||||||||||||||||||||||
Discontinued
operations
|
0.02 | 0.09 | 0.02 | (0.03 | ) | 0.37 | 0.39 | 0.39 | (0.04 | ) | ||||||||||||||||||||||
Net income
|
$ | 0.49 | 0.44 | 0.72 | 2.50 | $ | 1.07 | 1.05 | 1.03 | 0.78 |
PART
III
|
PART
IV
|
(a)
|
1.
|
All
financial statements – see pages 69 – 108.
|
2.
|
Financial
statement schedules – not applicable.
|
|
3.
|
Exhibits
– see exhibit index.
|
|
The
Brink’s Company
|
|||
(Registrant)
|
|||
By
|
/s/
M. T. Dan
|
||
(Michael
T. Dan,
|
|||
Chairman,
President and
|
|||
Chief
Executive Officer)
|
Signature
|
|
Title
|
/s/ M.
T. Dan
|
|
Director,
Chairman of the Board,
President
and Chief Executive Officer
(Principal
Executive Officer)
|
Michael
T. Dan
|
|
|
/s/ J.W.
Dziedzic
|
|
Vice
President
and
Chief Financial Officer
(Principal
Financial Officer)
|
Joseph
W. Dziedzic
|
|
|
/s/ M.
A. P. Schumacher
|
|
Controller
(Principal
Accounting Officer)
|
Matthew
A.P. Schumacher
|
|
|
*
|
|
Director
|
Roger
G. Ackerman
|
|
|
*
|
|
Director
|
Betty
C. Alewine
|
|
|
*
|
|
Director
|
Marc
C. Breslawsky
|
|
|
*
|
|
Director
|
Paul
G. Boynton
|
|
|
*
|
|
Director
|
Michael
J. Herling
|
|
|
*
|
|
Director
|
Thomas
R. Hudson Jr.
|
|
|
*
|
|
Director
|
Murray
D. Martin
|
|
|
*
|
Director
|
|
Thomas
C. Schievelbein
|
||
*
|
|
Director
|
Robert
J. Strang
|
|
|
*
|
|
Director
|
Ronald
L. Turner
|
|
*
By:
|
|
/s/ M.
T. Dan
|
|
Michael
T. Dan, Attorney-in-Fact
|
Exhibit
Number
|
Description
|
|
2(i)
|
Shareholders’
Agreement, dated as of January 10, 1997, between Brink’s Security
International, Inc., and Valores Tamanaco, C.A. Exhibit 10(w)
to the Registrant’s Annual Report on Form 10-K for the year ended December
31, 1998.
|
|
3(i)
|
Amended
and Restated Articles of Incorporation of the
Registrant. Exhibit 3(i) to the Registrant’s Current Report on
Form 8-K filed November 20, 2007.
|
|
3(ii)
|
Amended
and Restated Bylaws of the Registrant. Exhibit 3(ii) to the
Registrant’s Current Report on Form 8-K filed February 22,
2010.
|
|
10(a)*
|
Key
Employees Incentive Plan, as amended and restated as of November 16,
2007. Exhibit 10(a) to the Registrant’s Annual Report on Form
10-K for the year ended December 31, 2007 (the “2007 Form
10-K”)
|
|
10(b)*
|
Key
Employees’ Deferred Compensation Program, as amended and restated as of
November 13, 2008. Exhibit 10(b) to the Registrant’s Annual
report on Form 10-K for the year ended December 31, 2008 (the “2008 Form
10-K”)
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|
10(c)*
|
(i)
|
Pension
Equalization Plan as amended and restated, effective as of October 22,
2008. Exhibit 10.2 to the Registrant’s Quarterly Report on Form
10-Q for the quarter ended September 30, 2008 (the “Third Quarter 2008
Form 10-Q”)
|
(ii)
|
Amended
and Restated Trust Agreement, dated December 1, 1997, between the
Registrant and Chase Manhattan Bank, as Trustee (the “Trust
Agreement”). Exhibit 10(e)(ii) to the Registrant’s Annual
Report on Form 10-K for the year ended December 31, 1997 (the “1997
Form 10-K”).
|
|
(iii)
|
Amendment
No. 1 to Trust Agreement, dated as of August 18, 1999. Exhibit
10(c)(iii) to the Registrant’s Annual Report on Form 10-K for the year
ended December 31, 1999 (the “1999 Form 10-K”).
|
|
(iv)
|
Amendment
No. 2 to Trust Agreement, dated as of July 26, 2001. Exhibit
10(c)(iv) to the Registrant’s Annual Report on Form 10-K for the year
ended December 31, 2002 (the “2002 Form 10-K”).
|
|
(v)
|
Amendment
No. 3 to Trust Agreement, dated as of September 18,
2002. Exhibit 10(c)(v) to the 2002 Form
10-K.
|
|
(vi)
|
Amendment
No. 4 to Trust Agreement, dated as of September 22,
2003. Exhibit 10.1 to the Registrant’s Quarterly Report on Form
10-Q for the quarter ended September 30, 2003 (the “Third Quarter 2003
Form 10-Q”).
|
|
(vii)
|
Amendment
No. 5 to Trust Agreement, dated as of September 20,
2004. Exhibit 10.1 to the Registrant’s Quarterly Report on Form
10-Q for the quarter ended September 30, 2004.
|
|
(viii)
|
Amendment
No. 6 to Trust Agreement, dated as of November 22,
2004. Exhibit 99.4 to the Registrant’s Current Report on Form
8-K filed November 22, 2004.
|
|
10(d)*
|
Executive
Salary Continuation Plan. Exhibit 10(e) to the Registrant’s
Annual Report on Form 10-K for the year ended December 31, 1991 (the “1991
Form 10-K”).
|
|
10(e)*
|
1988
Stock Option Plan, as amended and restated as of January 14,
2000. Exhibit 10(f) to the 1999
Form 10-K.
|
|
10(f)*
|
2005
Equity Incentive Plan, as amended and restated as of February 19,
2010.
|
|
10(g)*
|
(i)
|
Form
of Option Agreement for options granted under 2005 Equity Incentive
Plan. Exhibit 99 to the Registrant’s Current Report on Form 8-K
filed July 13, 2005.
|
(ii)
|
Form
of Restricted Stock Units Award Agreement for restricted stock units
granted under 2005 Equity Incentive Plan. Exhibit 10.1 to the
Registrant’s Current Report on Form 8-K filed July 13,
2009.
|
|
10(h)*
|
Management
Performance Improvement Plan, as amended and restated as of February 19,
2010.
|
|
10(i)*
|
Change
in Control Agreement dated as of February 25, 2010, between the Registrant
and Frank T. Lennon. Exhibit 10.3 to the Registrant’s Current
Report on Form 8-K filed February 25, 2010.
|
|
10(j)*
|
(i)
|
Form
of severance agreement between the Registrant and Frank T.
Lennon. Exhibit 10(o)(ii) to the 1997 Form
10-K.
|
(ii)
|
Form
of Amendment No. 1 to severance agreement. Exhibit 10(j)(ii) to
the 2008 Form 10-K.
|
|
10(k)*
|
(i)
|
Employment
Agreement dated as of May 4, 1998, among the Registrant, Brink’s,
Incorporated and Michael T. Dan. Exhibit 10(a) to the Registrant’s
Quarterly Report on Form 10-Q for the quarter ended September 30, 1998
(the “Third Quarter 1998 Form 10-Q”).
|
(ii)
|
Amendment
No. 1 to Employment Agreement among the Registrant, Brink’s, Incorporated
and Michael T. Dan. Exhibit 10 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended June 30,
2002.
|
|
(iii)
|
Amendment
No. 2 to Employment Agreement among the Registrant, Brink’s, Incorporated
and Michael T. Dan. Exhibit 10 to the Registrant’s Current
Report on Form 8-K filed March 10, 2006.
|
|
(iv)
|
Amendment
No. 3 to Employment Agreement among the Registrant, Brink’s, Incorporated
and Michael T. Dan. Exhibit 10(k)(iv) to the 2008 Form
10-K.
|
|
(v)
|
Amendment
No. 4 to Employment Agreement among the Registrant, Brink’s, Incorporated
and Michael T. Dan. Exhibit 10.1 to the Registrant’s Current
Report on Form 8-K filed May 13, 2009.
|
|
10(l)*
|
Change
in Control Agreement dated as of February 25, 2010, between the Registrant
and Michael T. Dan. Exhibit 10.1 to the Registrant’s Current
Report on Form 8-K filed February 25, 2010.
|
|
10(m)*
|
(i)
|
Change
in Control Agreement dated as of April 7, 2008, between the Registrant and
Michael J. Cazer. Exhibit 10.3 to the Registrant’s Current
Report on Form 8-K filed May 5, 2008.
|
(ii)
|
Amendment
No. 1 to Change in Control Agreement between the Registrant and Michael J.
Cazer. Exhibit 10(m)(ii) to the 2008 Form
10-K.
|
|
10(n)*
|
(i)
|
Severance
Agreement dated as of April 7, 2008, between the Registrant and Michael J.
Cazer. Exhibit 10.4 to the Registrant’s Current Report on Form
8-K filed May 5, 2008.
|
(ii)
|
Amendment
No. 1 to Severance Agreement between the Registrant and Michael J.
Cazer. Exhibit 10(n)(ii) to the 2008 Form
10-K.
|
|
10(o)*
|
(i)
|
Restricted
Stock Unit Award Agreement, dated as of April 7, 2008, between the
Registrant and Michael J. Cazer. Exhibit 10.1 to the Registrant’s Current
Report on Form 8-K filed May 5, 2008.
|
(ii)
|
Restricted
Stock Unit Award Agreement, dated as of April 7, 2008, between the
Registrant and Michael J. Cazer. Exhibit 10.2 to the Registrant’s Current
Report on Form 8-K filed May 5, 2008.
|
|
10(p)*
|
Change
in Control Agreement dated as of February 25, 2010, between the Registrant
and Joseph W. Dziedzic. Exhibit 10.2 to the Registrant’s
Current Report on Form 8-K filed February 25, 2010.
|
|
10(q)*
|
Change
in Control Agreement dated as of February 25, 2010, between the Registrant
and McAlister C. Marshall, II. Exhibit 10.4 to the Registrant’s
Current Report on Form 8-K filed February 25, 2010.
|
|
10(r)*
|
Restricted
Stock Unit Award Agreement, dated as of September 15, 2008, between the
Registrant and McAlister C. Marshall, II. Exhibit 10(q) to the
2008 Form 10-K.
|
|
10(s)*
|
Change
in Control Agreement dated as of February 25, 2010, between the Registrant
and Matthew A.P. Schumacher. Exhibit 10.5 to the Registrant’s
Current Report on Form 8-K filed February 25, 2010.
|
|
10(t)*
|
Form
of Indemnification Agreement entered into by the Registrant with its
directors and officers. Exhibit 10(l) to the 1991 Form
10-K.
|
|
10(u)*
|
(i)
|
Retirement
Plan for Non-Employee Directors, as amended. Exhibit 10(g) to
the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 1994 (the “Third Quarter 1994 Form
10-Q”).
|
(ii)
|
Form
of letter agreement dated as of September 16, 1994, between the Registrant
and its Non-Employee Directors pursuant to Retirement Plan for
Non-Employee Directors. Exhibit 10(h) to the Third Quarter 1994
Form 10-Q.
|
|
10(v)*
|
Non-Employee
Directors’ Stock Option Plan, as amended and restated as of July 8,
2005. Exhibit 10.2 to the Registrant’s Quarterly Report on Form
10-Q for the quarter ended June 30, 2005.
|
|
10(w)*
|
Directors’
Stock Accumulation Plan, as amended and restated as of September 12,
2008. Exhibit 10.1 to the Third Quarter 2008 Form
10-Q.
|
|
10(x)*
|
Non-Employee
Directors’ Equity Plan. Annex B to the Proxy Statement for the
Registrant’s 2008 Annual Meeting of Shareholders.
|
|
10(y)*
|
(i)
|
Form
of Award Agreement for deferred stock units granted in 2008 under the
Non-Employee Directors’ Equity Plan. Exhibit 10.3 to the
Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30,
2008 (the “Second Quarter 2008 Form 10-Q”).
|
(ii)
|
Form
of Award Agreement for deferred stock units granted in 2009 under the
Non-Employee Directors Equity Plan. Exhibit 10.5 to the
Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30,
2009 (the “Second Quarter 2009 Form 10-Q”).
|
|
10(z)*
|
Plan
for Deferral of Directors’ Fees, as amended and restated as of November
14, 2008. Exhibit 10(y) to the 2008 Form
10-K.
|
|
10(aa)
|
(i)
|
Trust
Agreement for The Brink’s Company Employee Welfare Benefit
Trust. Exhibit 10(t) to the 1999
Form 10-K.
|
(ii)
|
First
Amendment of The Brink’s Company Employee Welfare Benefit Trust, dated as
of November 1, 2001. Exhibit 10(t)(ii) to the 2007 Form
10-K.
|
|
(iii)
|
Second
Amendment of The Brink’s Company Employee Welfare Benefit Trust, dated as
of September 30, 2003. Exhibit 10(t)(iii) to the 2007 Form
10-K.
|
|
10(bb)
|
(i)
|
$43,160,000
Bond Purchase Agreement, dated September 17, 2003, among the Peninsula
Ports Authority of Virginia, Dominion Terminal Associates, Pittston Coal
Terminal Corporation and the Registrant. Exhibit 10.1 to the
Second Quarter 2009 Form 10-Q.
|
(ii)
|
Loan
Agreement between the Peninsula Ports Authority of Virginia and Dominion
Terminal Associates, dated September 1, 2003. Exhibit 10.2(ii)
to the Third Quarter 2003 Form 10-Q.
|
|
(iii)
|
Indenture
and Trust between the Peninsula Ports Authority of Virginia and Wachovia
Bank, National Association (“Wachovia”), as trustee, dated September 1,
2003. Exhibit 10.2(iii) to the Third Quarter 2003 Form
10-Q.
|
|
(iv)
|
Parent
Company Guaranty Agreement, dated September 1, 2003, made by the
Registrant for the benefit of Wachovia. Exhibit 10.2(iv) to the
Third Quarter 2003 Form 10-Q.
|
|
(v)
|
Continuing
Disclosure Undertaking between the Registrant and Wachovia, dated
September 24, 2003. Exhibit 10.2(v) to the Third Quarter 2003
Form 10-Q.
|
|
(vi)
|
Coal
Terminal Revenue Refunding Bond (Dominion Terminal Associates Project –
Brink’s Issue) Series 2003. Exhibit 10.2(vi) to the Third
Quarter 2003 Form 10-Q.
|
|
10(cc)
|
$135,000,000
Letter of Credit Agreement, dated as of July 23, 2008 with an effective
date of August 13, 2008, among the Registrant, certain of the Registrant’s
subsidiaries and ABN AMRO Bank N.V. Exhibit 10.2 to Second
Quarter 2009 Form 10-Q.
|
|
10(dd)
|
(i)
|
Credit
Agreement, dated July 13, 2005, among the Registrant, certain of its
subsidiaries and ABN AMRO Bank N.V. Exhibit 10.3 to Second
Quarter 2009 Form 10-Q.
|
(ii)
|
First
Amendment to Credit Agreement, entered into as of December 22, 2006, by
and among the Registrant, Brink’s, Incorporated and ABN AMRO Bank
N.V. Exhibit 10.2 to the Registrant’s Current Report on Form
8-K filed December 22, 2006.
|
|
(iii)
|
Second
Amendment to Credit Agreement, entered into as of March 24, 2008, by and
among the Registrant, Brink’s, Incorporated and ABN AMRO Bank
N.V. Exhibit 10(cc)(iii) to the 2008 Form
10-K.
|
|
10(ee)
|
$400,000,000
Credit Agreement among the Registrant, as Parent Borrower, the Subsidiary
Borrowers referred to therein, certain of Parent Borrower’s Subsidiaries,
as Guarantors, Various Lenders, Bank of Tokyo-Mitsubishi UFJ Trust
Company, as Documentation Agent, Bank of America, N.A. and JPMorgan Chase
Bank, N.A., as Syndication Agents, and Wachovia Bank, National
Association, as Administrative Agent, an Issuing Lender and Swingline
Lender, dated as of August 11, 2006. Exhibit 10.4 to Second
Quarter 2009 Form 10-Q.
|
|
10(ff)
|
Stock
Purchase Agreement, dated as of November 15, 2005, by and among BAX
Holding Company, BAX Global Inc., The Brink’s Company and Deutsche Bahn
AG. Exhibit 2.1 to the Registrant’s Current Report on Form 8-K
filed November 16, 2005.
|
|
10(gg)
|
Separation
and Distribution Agreement between the Registrant and Brink’s Home
Security Holdings, Inc. dated as of October 31, 2008. Exhibit
10.1 to the Registrant’s Current Report on Form 8-K filed November 5,
2008.
|
|
10(hh)
|
Brand
Licensing Agreement between Brink’s Network, Incorporated and Brink’s Home
Security Holdings, Inc. dated as of October 31, 2008. Exhibit
10.2 to the Registrant’s Current Report on Form 8-K filed November 5,
2008.
|
|
10(ii)
|
Tax
Matters Agreement between the Registrant and Brink’s Home Security
Holdings, Inc. dated as of October 31, 2008. Exhibit 10.3 to
the Registrant’s Current Report on Form 8-K filed November 5,
2008.
|
|
10(jj)
|
Non-Competition
and Non-Solicitation Agreement between the Registrant and Brink’s Home
Security Holdings, Inc. dated as of October 31, 2008. Exhibit
10.4 to the Registrant’s Current Report on Form 8-K filed November 5,
2008.
|
|
10(kk)
|
Employee
Matters Agreement between the Registrant and Brink’s Home Security
Holdings, Inc. dated as of October 31, 2008. Exhibit 10.5 to
the Registrant’s Current Report on Form 8-K filed November 5,
2008.
|
|
10(ll)
|
Registration
Rights Agreement between the Registrant and Evercore Trust Company, N.A.
dated as of August 20, 2009. Exhibit 10.1 to the Registrant’s
Current Report on Form 8-K filed August 20, 2009.
|
|
21
|
Subsidiaries
of the Registrant.
|
|
23
|
Consent
of Independent Registered Public Accounting Firm.
|
|
24
|
Powers
of Attorney.
|
|
31
|
Rule
13a-14(a)/15d-14(a) Certifications.
|
|
32
|
Section
1350 Certifications.
|
|
99(a)*
|
Excerpt
from Pension-Retirement Plan relating to preservation of assets of the
Pension-Retirement Plan upon a change in control. Exhibit 99(a)
to the 2008 Form 10-K.
|