Company: BCO
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0000078890-25-000154
Chunk: 16

Company: BRINKS CO
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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. At March 31, 2025, the notional value of our outstanding foreign currency forward and swap contracts was $ 772 one month

Cash flows related to economic hedges are reported in the condensed consolidated statements of cash flows based on the nature of the underlying items being hedged. For the periods presented, such cash flows are reported in operating activities or investing activities.

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

  (In millions)                   March 31, 2025                   December 31, 2024  
 ──────────────────────────────────────────────────────────────────────────────────────
  Prepaid expenses and other      $                       0.9                   19.0  
  Accrued liabilities             ( 18.1)                                    ( 10.1)  
  Net asset (liability)           $                   ( 17.2)                    8.9  

Amounts under these contracts were recognized in other operating income (expense) as follows:

  (in millions)                                                                              2025      2024  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Derivative instrument gains (losses) included in other operating income (expense) (a)      $         13.4  

(a) Derivative instrument losses in the three months ended March 31, 2025, as compared to gains in the prior year period is primarily due to the impact of hedging currency exposures on intercompany loans denominated in the Mexican peso, the Euro, and the British pound.

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