Company: BCO
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000078890-25-000059
Chunk: 255

Company: BRINKS CO
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 255
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-Mean Curve to determine the discount rates for retirement cost and the year-end benefit obligation. To derive the Above-Mean Curve, Mercer uses only those bonds with a yield higher than the mean yield of the same portfolio of high quality bonds. The Above-Mean Curve reflects the way an active investment manager would select high-quality bonds to match the cash flows of the plan.

Non-U.S. Plans

We use the same cash flow matching method to derive the discount rates for our major non-U.S. retirement plans. Where the cash flow matching method is not possible, rates of local high-quality long-term government bonds are used to estimate the discount rate.

The discount rates for the primary U.S. pension plan, UMWA retiree medical plans and Black Lung obligations were:

Primary U.S. PlanUMWA PlansBlack Lung 202420232022202420232022202420232022Discount rate:Retirement cost5.1 %5.4 %2.8 %5.1 %5.4 %2.8 %5.1 %5.4 %2.7 %Benefit obligation at year end5.6 %5.1 %5.4 %5.6 %5.1 %5.4 %5.5 %5.1 %5.4 %

Sensitivity Analysis

The discount rate we select at year end materially affects the valuations of plan obligations at year end and the calculations of net periodic expenses for the following year. The tables below compare hypothetical plan obligation valuations for our largest plans as of December 31, 2024, actual expenses for 2024 and projected expenses for 2025 assuming we had used discount rates that were one percentage point lower or higher.

Plan Obligations at December 31, 2024

(In millions)Hypothetical1% lowerActualHypothetical1% higherPrimary U.S. pension plan$635.7 579.5531.7UMWA plans186.8 172.2159.7

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Actual 2024 and Projected 2025 Expense (Income)

(In millions, except for percentages)Hypothetical sensitivity analysisfor discount rate assumptionHypothetical sensitivity analysisfor discount rate assumptionActual1% lower1% higherProjected1% lower1% higherYears Ending December 31,202420242024202520252025Primary U.S. pension planDiscount rate assumption5.