Company: BCO
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000078890-25-000059
Chunk: 256

Company: BRINKS CO
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 256
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1 %4.1 %6.1 %5.6 %4.6 %6.6 %Retirement cost$(10.9)(5.6)(13.3)$(8.1)(3.6)(11.0)UMWA plansDiscount rate assumption5.1 %4.1 %6.1 %5.6 %4.6 %6.6 %Retirement cost$(8.3)(7.9)(8.7)$(9.5)(9.2)(9.9)

Expected-Return-on-Assets Assumption

Our expected-return-on-assets assumption, which materially affects our net periodic benefit cost, reflects the long-term average rate of return we expect the plan assets to earn. We select the expected-return-on-assets assumption using advice from our investment advisor considering each plan’s asset allocation targets and expected overall investment manager performance and a review of the most recent long-term historical average compounded rates of return, as applicable. We selected 7.00% as the expected-return-on-assets assumption for our primary U.S. pension plan and 8.00% for our UMWA retiree medical plans for actual 2024 expense. We selected 7.00% as the expected-return-on-assets assumption for our primary U.S. pension plan and 8.00% for our UMWA retiree medical plans for projected 2025 expense.

Sensitivity Analysis

Effect of using different expected-rate-of-return assumptions. Our 2024 and projected 2025 expense would have been different if we had used different expected-rate-of-return assumptions. For every hypothetical change of one percentage point in the assumed long-term rate of return on plan assets (and holding other assumptions constant), our actual 2024 and projected 2025 expense would be as follows:

(In millions, except for percentages)Hypothetical sensitivity analysisfor expected-return-on assetassumption Hypothetical sensitivity analysisfor expected-return-on assetassumptionActual1% lower1% higherProjected1% lower1% higherYears Ending December 31,202420242024202520252025Expected-return-on-asset assumptionPrimary U.S. pension plan7.00 %6.00 %8.00 %7.00 %6.00 %8.00 %UMWA plans8.00 %7.00 %9.00 %8.00 %7.00 %