Company: BCO
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000078890-25-000059
Chunk: 257

Company: BRINKS CO
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 257
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9.00 %Primary U.S. pension plan$(10.9)(4.3)(17.5)$(8.1)(1.7)(14.5)UMWA plans(8.3)(7.0)(9.6)(9.5)(8.3)(10.7)

54

Effect of improving or deteriorating actual future market returns. Our funded status at December 31, 2025, and our 2026 expense will be different from currently projected amounts if our projected 2025 returns are better or worse than the returns we have assumed for each plan.

(In millions, except for percentages)Hypothetical sensitivity analysis of 2025 asset returnbetter or worse than expectedYears Ending December 31,ProjectedBetter returnWorse returnReturn on investments in 2025Primary U.S. pension plan7.00 %14.00 %— %UMWA plans8.00 %16.00 %— %Projected Funded Status at December 31, 2025Primary U.S. pension plan$14 53 (25)UMWA plans(42)(32)(52)2026 Expense(a)Primary U.S. pension plan$(1)(2)1 UMWA plans(5)(7)(3)

(a)Actual future returns on investments will not affect our earnings until 2026 since the earnings in 2025 will be based on the "expected return on assets" assumption.

Effect of using fair market value of assets to determine expense.  For our defined-benefit pension plans, we calculate expected investment returns by applying the expected long-term rate of return to the market-related value of plan assets. In addition, our plan asset actuarial gains and losses that are subject to amortization are based on the market-related value.

The market-related value of the plan assets is different from the actual or fair market value of the assets. The actual or fair market value is, at a point in time, the value of the assets that is available to make payments to pensioners and to cover any transaction costs. The market-related value recognizes changes in fair value from the expected value on a straight-line basis over five years. This recognition method spreads the effects of year-over-year volatility in the financial markets over several years.

Our expenses related to our primary U.S. pension plan would have been different if our accounting policy were to use the fair market value of plan assets instead of the market-related value to recognize