Company: BCO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000078890-25-000312
Chunk: 18

Company: BRINKS CO
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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                          Nine Months                       
                                                                                             Ended September 30,                   Ended September 30,               
  (in millions)                                                                              2025                        2024      2025                        2024  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Derivative instrument gains (losses) included in other operating income (expense) (a)      $                        ( 39.4)      $                        ( 38.1)  

(a) Derivative instrument losses in the nine months ended September 30, 2025, and derivative instrument gains in the three months ended September 30, 2025, as compared to the corresponding prior year periods are primarily due to the impact of hedging currency exposures on intercompany loans denominated in the euro, the British pound, and the Mexican peso.

Net Investment Hedges

We have entered into cross currency swaps and foreign exchange forward swap contracts to hedge a portion of our net investments in certain of our subsidiaries with euro and Hong Kong dollar functional currencies. We elected to use the spot method to assess effectiveness for these derivatives that are designated as net investment hedges for accounting purposes. Accordingly, changes in fair value attributable to changes in the undiscounted spot rates are recorded in the foreign currency translation adjustments component of accumulated other comprehensive income (loss) and will remain there until the hedged net investments are sold or substantially liquidated. We have elected to exclude the spot-forward difference from the assessment of hedge effectiveness and are amortizing this amount separately on a straight-line basis over the term of the cross currency swaps.

In 2023, we entered into a zero cost foreign exchange collar contract with a $ 215 215 215 215 215

The fair value of these contracts were recognized in the condensed consolidated balance sheet as follows:

  (In millions)                                  September 30, 2025                   December 31, 2024  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────
  Euro net investment hedge (a)                                                                          
  Prepaid expenses and other                     $                           2.1                    5.7  
  Accrued liabilities                            ( 35.0)                                              —  
  Other noncurrent liabilities                   ( 29.5)                                        ( 21.7)  
  Zero cost collar                                                                                       
  Prepaid expenses and other                     $                           0.6                      —  
  Other noncurrent asset                         —                                                  3.1