Company: BCO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000078890-25-000312
Chunk: 43

Company: BRINKS CO
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 43
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. These short term foreign currency forward and swap contracts primarily offset exposures in the euro, the Mexican peso, and the British pound and are not designated as hedges for accounting purposes. Accordingly, changes in their fair value are recorded immediately in earnings. See Note 7 for more details regarding our economic 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. As net investment hedges for accounting purposes, we elected to use the spot method to assess effectiveness for these derivatives that are designated as net investment hedges. 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. See Note 7 for more details regarding these contracts.

Other Operating Income and Expense

Other operating income (expense) includes amounts included in segment results as well as income and expense not allocated to segments.

                                                                  Three Months                              %                   Nine Months                  %       
                                                           Ended September 30,                                          Ended September 30,                          
  (In millions, except for percentages)                                   2025                    2024      change                     2025        2024      change  
  Foreign currency items:                                                                                                                                            
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Transaction gains (losses)                                                 $      (10.8)        36.2      unfav                         $        37.9      (60)    
  Derivative instrument gains (losses)                                    11.3                  (39.4)      fav                      (23.9)      (38.1)      (37)    
  Gains (losses) on sale of property and other assets                    (0.4)                     0.1      unfav                     (0.1)         1.4      unfav   
  Impairment losses                                                      (0.4)                   (1.4)      (71)                      (2.4)       (3.3)      (27)    
  Indemnification asset adjustments                                        2.9                   (1.2)