Company: BCO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000078890-25-000253
Chunk: 15

Company: BRINKS CO
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 15
---
 2 valuation.

Economic Hedges

We have outstanding foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies. At June 30, 2025, the notional value of our outstanding foreign currency forward and swap contracts was $ 881 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)                   June 30, 2025                   December 31, 2024  
 ─────────────────────────────────────────────────────────────────────────────────────
  Prepaid expenses and other      $                      3.6                   19.0  
  Accrued liabilities             ( 21.4)                                   ( 10.1)  
  Net asset (liability)           $                  ( 17.8)                    8.9  

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

                                                                                             Three Months                     Six Months                
                                                                                             Ended June 30,                   Ended June 30,            
  (in millions)                                                                              2025                   2024      2025                2024  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Derivative instrument gains (losses) included in other operating income (expense) (a)      $                   ( 12.1)      $                    1.3  

(a) Derivative instrument losses in the six months ended June 30, 2025, and in the three months ended June 30, 2025, as compared to the prior year period are primarily due to the impact of hedging currency exposures on intercompany loans denominated in 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