Edgar Filing: BRINKS CO

form_10-q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number 001-09148

	THE BRINK’S COMPANY
	(Exact name of registrant as specified in its charter)

	Virginia		54-1317776
	(State or other jurisdiction of		(I.R.S. Employer
	incorporation or organization)		Identification No.)

1801 Bayberry Court, Richmond, Virginia 23226-8100

(Address of principal executive offices) (Zip Code)

(804) 289-9600

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

(Check one): Large Accelerated Filer x Accelerated Filer ¨ Non-Accelerated Filer ¨ Smaller Reporting Company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No x

As of April 28, 2015, 48,632,121 shares of $1 par value common stock were outstanding.

Part I - Financial Information

Item 1. Financial Statements

THE BRINK’S COMPANY

and subsidiaries

Consolidated Balance Sheets

(Unaudited)

	March 31,			December 31,
(In millions)	2015			2014

ASSETS

Current assets:
Cash and cash equivalents	$	168.8			176.2
Accounts receivable, net		491.8			530.5
Prepaid expenses and other		131.6			129.0
Deferred income taxes		65.7			71.9
Total current assets		857.9			907.6

Property and equipment, net		614.6			669.5
Goodwill		196.0			215.7
Other intangibles		35.4			39.8
Deferred income taxes		282.3			289.5
Other		65.8			70.1

Total assets	$	2,052.0			2,192.2


LIABILITIES AND EQUITY

Current liabilities:
Short-term borrowings	$	47.0			59.4
Current maturities of long-term debt		38.4			34.1
Accounts payable		127.3			168.6
Accrued liabilities		412.7			466.3
Total current liabilities		625.4			728.4

Long-term debt		422.4			373.3
Accrued pension costs		201.3			219.0
Retirement benefits other than pensions		254.2			257.1
Deferred income taxes		10.0			10.8
Other		117.5			129.8
Total liabilities		1,630.8			1,718.4

Contingent liabilities (notes 3, 4 and 11)

Equity:
The Brink’s Company (“Brink’s”) shareholders:
Common stock		48.6			48.6
Capital in excess of par value		589.7			584.5
Retained earnings		585.0			592.9
Accumulated other comprehensive loss		(833.8	)		(792.0	)
Brink’s shareholders		389.5			434.0

Noncontrolling interests		31.7			39.8

Total equity		421.2			473.8

Total liabilities and equity	$	2,052.0			2,192.2

See accompanying notes to consolidated financial statements.

THE BRINK’S COMPANY

and subsidiaries

Consolidated Statements of Income (Loss)

(Unaudited)

				Three Months
				Ended March 31,
(In millions, except for per share amounts)				2015	2014

Revenues			$	776.1	949.6

Costs and expenses:
Cost of revenues				629.1	759.7
Selling, general and administrative expenses				112.3	140.5
	Total costs and expenses			741.4	900.2
Other operating expense				(21.8)	(123.1)

	Operating profit (loss)			12.9	(73.7)

Interest expense				(4.9)	(5.8)
Interest and other income				0.4	-
	Income (loss) from continuing operations before tax			8.4	(79.5)
Provision for income taxes				15.5	8.7

	Loss from continuing operations			(7.1)	(88.2)

Income (loss) from discontinued operations, net of tax				(2.4)	0.5

	Net loss			(9.5)	(87.7)
		Less net loss attributable to noncontrolling interests		(6.5)	(29.2)

	Net loss attributable to Brink’s			(3.0)	(58.5)

Amounts attributable to Brink’s
	Continuing operations			(0.6)	(59.0)
	Discontinued operations			(2.4)	0.5

	Net loss attributable to Brink’s		$	(3.0)	(58.5)

Earnings (loss) per share attributable to Brink’s common shareholders(a):
	Basic:
		Continuing operations	$	(0.01)	(1.21)
		Discontinued operations		(0.05)	0.01
		Net loss	$	(0.06)	(1.20)

	Diluted:
		Continuing operations	$	(0.01)	(1.21)
		Discontinued operations		(0.05)	0.01
		Net loss	$	(0.06)	(1.20)

Weighted-average shares
	Basic			49.1	48.9
	Diluted			49.1	48.9

Cash dividends paid per common share			$	0.10	0.10

(a) Amounts may not add due to rounding.

See accompanying notes to consolidated financial statements.

THE BRINK’S COMPANY

and subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

	Three Months
	Ended March 31,
(In millions)	2015			2014

Net loss	$	(9.5	)		(87.7	)

Benefit plan adjustments:
Benefit plan experience gains		14.2			10.5
Benefit plan prior service cost		(3.0	)		(0.4	)
Total benefit plan adjustments		11.2			10.1

Foreign currency translation adjustments		(50.4	)		(4.2	)
Gains on cash flow hedges		-			0.6
Other comprehensive income (loss) before tax		(39.2	)		6.5
Provision for income taxes		4.0			3.7

Other comprehensive income (loss)		(43.2	)		2.8

Comprehensive loss		(52.7	)		(84.9	)
Less comprehensive loss attributable to noncontrolling interests		(7.9	)		(29.9	)

Comprehensive loss attributable to Brink's	$	(44.8	)		(55.0	)

See accompanying notes to consolidated financial statements.

THE BRINK’S COMPANY

and subsidiaries

Consolidated Statement of Equity

Three Months ended March 31, 2015

(Unaudited)

	Attributable to Brink’s
					Capital					Accumulated			Attributable
					in Excess					Other			to
			Common		of Par		Retained			Comprehensive			Noncontrolling
(In millions)	Shares		Stock		Value		Earnings			Loss			Interests			Total

Balance as of December 31, 2014		48.6	$	48.6		584.5		592.9			(792.0	)		39.8			473.8

Net loss		-		-		-		(3.0	)		-			(6.5	)		(9.5	)
Other comprehensive loss		-		-		-		-			(41.8	)		(1.4	)		(43.2	)
Dividends to:
Brink’s common shareholders ($0.10 per share)		-		-		-		(4.9	)		-			-			(4.9	)
Noncontrolling interests		-		-		-		-			-			(0.2	)		(0.2	)
Share-based compensation:
Stock awards and options:
Compensation expense		-		-		5.2		-			-			-			5.2

Balance as of March 31, 2015		48.6	$	48.6		589.7		585.0			(833.8	)		31.7			421.2

See accompanying notes to consolidated financial statements

THE BRINK’S COMPANY

and subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

	Three Months
	Ended March 31,
(In millions)	2015			2014

Cash flows from operating activities:
Net loss	$	(9.5	)		(87.7	)
Adjustments to reconcile net loss to net cash provided by operating activities:
(Income) loss from discontinued operations, net of tax		2.4			(0.5	)
Depreciation and amortization		36.7			41.9
Share-based compensation expense		5.2			5.9
Deferred income taxes		(4.6	)		(15.4	)
Gains and losses:
Sales of available-for-sale securities		-			(0.1	)
Sales of property and other assets		(0.2	)		(0.3	)
Impairment losses		1.1			-
Retirement benefit funding (more) less than expense:
Pension		(0.7	)		0.5
Other than pension		2.4			1.8
Loss on Venezuela currency devaluation		18.0			121.9
Other operating		0.9			1.7
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable		(16.8	)		(41.8	)
Accounts payable, income taxes payable and accrued liabilities		(47.7	)		8.7
Customer obligations		1.5			7.4
Prepaid and other current assets		(14.8	)		(15.5	)
Other		4.7			(0.5	)
Discontinued operations		(2.0	)		2.6
Net cash provided (used) by operating activities		(23.4	)		30.6

Cash flows from investing activities:
Capital expenditures		(14.3	)		(23.8	)
Cash proceeds from sale of property, equipment and investments		0.2			0.4
Net cash received related to foreign currency derivatives		1.4			-
Other		3.4			-
Discontinued operations		1.9			(5.2	)
Net cash used by investing activities		(7.4	)		(28.6	)

Cash flows from financing activities:
Borrowings (repayments) of debt:
Short-term debt		(6.6	)		(13.9	)
Long-term revolving credit facilities		(9.8	)		70.0
Other long-term debt:
Borrowings		82.0			1.2
Repayments		(17.9	)		(11.9	)
Debt financing costs		(1.9	)		-
Dividends to:
Shareholders of Brink’s		(4.9	)		(4.8	)
Noncontrolling interests in subsidiaries		(0.2	)		(0.1	)
Proceeds from exercise of stock options		0.1			-
Minimum tax withholdings associated with share-based compensation		(0.3	)		(0.1	)
Other		0.1			(0.2	)
Net cash provided by financing activities		40.6			40.2
Effect of exchange rate changes on cash		(17.2	)		(96.2	)
Cash and cash equivalents:
Increase (decrease)		(7.4	)		(54.0	)
Balance at beginning of period		176.2			255.5
Balance at end of period	$	168.8			201.5

See accompanying notes to consolidated financial statements

THE BRINK’S COMPANY

and subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

Note 1 – Basis of presentation

Effective December 2014, The Brink’s Company (along with its subsidiaries, “Brink’s” or “we”) has nine operating segments:

·	Each of the five countries within Largest 5 Markets (U.S., France, Mexico, Brazil and Canada)

·	Each of the three regions within Global Markets (Latin America, EMEA and Asia)

·	Payment Services

Our unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and applicable quarterly reporting regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes in our Annual Report on Form 10-K for the year ended December 31, 2014.

We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements. Actual results could differ materially from these estimates. The most significant estimates are related to goodwill and other long-lived assets, pension and other retirement benefit obligations, legal contingencies, foreign currency translation and deferred tax assets.

The consolidated financial statements include the accounts of Brink’s and the subsidiaries it controls. Control is determined based on ownership rights or, when applicable, based on whether we are considered to be the primary beneficiary of a variable interest entity. Our interest in 20% to 50% owned companies that are not controlled are accounted for using the equity method, unless we do not sufficiently influence the management of the investee. Other investments are accounted for as cost-method investments or as available-for-sale. All significant intercompany accounts and transactions have been eliminated in consolidation.

Foreign Currency Translation

Our consolidated financial statements are reported in U.S. dollars. Our foreign subsidiaries maintain their records primarily in the currency of the country in which they operate.

The method of translating local currency financial information into U.S. dollars depends on whether the economy in which our foreign subsidiary operates has been designated as highly inflationary or not. Economies with a three-year cumulative inflation rate of more than 100% are considered highly inflationary.

Assets and liabilities of foreign subsidiaries in non-highly inflationary economies are translated into U.S. dollars using rates of exchange at the balance sheet date. Translation adjustments are recorded in other comprehensive income (loss). Revenues and expenses are translated at rates of exchange in effect during the year. Transaction gains and losses are recorded in net income.

Foreign subsidiaries that operate in highly inflationary countries use the U.S. dollar as their functional currency. Local-currency monetary assets and liabilities are remeasured into U.S. dollars using rates of exchange as of each balance sheet date, with remeasurement adjustments and other transaction gains and losses recognized in earnings. Non-monetary assets and liabilities do not fluctuate with changes in local currency exchange rates to the dollar.

Venezuela

The economy in Venezuela has had significant inflation in the last several years. We consolidate our Venezuelan results using our accounting policy for subsidiaries operating in highly inflationary economies.

Brink’s Venezuela accounted for $20.5 million or 3% of total Brink’s revenues in the three months ended March 31, 2015 and $131.3 million or 14% of total Brink’s revenues in the three months ended March 31, 2014.

Since 2003, the Venezuelan government has controlled the exchange of local currency into other currencies, including the U.S. dollar. During this period, the Venezuelan government has required that currency exchanges be made at official rates established by the government instead of

allowing open markets to determine currency rates. Different official rates existed for different industries and purposes. The government has not approved all requests to convert bolivars to other currencies.

Late in 2013, the government added another official exchange process, known as SICAD, for travel and certain other purposes, made available at government discretion. The published rate for this process in 2014 ranged from 10 to 12 bolivars to the U.S. dollar. We have only been able to obtain dollars once using the SICAD process.

In March 2014, the government initiated another exchange mechanism known as SICAD II. Conversions under this mechanism were also subject to specific eligibility requirements. Transactions were reported in a range of 49 to 52 bolivars to the dollar. From March 2014 through December 31, 2014, we received approval to obtain a total of $1.2 million (at a weighted average exchange rate of 51 bolivars to the dollar) through the SICAD II mechanism.

In February 2015, the government replaced the SICAD II process with a new process, known locally as SIMADI. The rates published since mid-February 2015 have ranged from 170 to 198 bolivars to the U.S. dollar. To date, we have not been successful in accessing U.S. dollars through this exchange mechanism.

As a result of the restrictions on currency exchange, our Venezuelan operations have in the past been unable to obtain sufficient U.S. dollars to purchase certain imported supplies and fixed assets. Consequently, our Venezuelan operations have occasionally purchased more expensive, bolivar-denominated supplies and fixed assets. Furthermore, there is a risk that the new SIMADI process will be discontinued or not accessible when needed in the future, which may continue to prevent us from repatriating dividends or obtaining U.S. dollars to operate our Venezuela operations.

Remeasurement rates during 2014. Through March 23, 2014, we used the official rate of 6.3 bolivars to the dollar to remeasure our bolivar denominated monetary assets and liabilities into U.S. dollars and to translate our revenue and expenses. Effective March 24, 2014, we began to use the exchange rate published for the SICAD II process to remeasure bolivar denominated monetary assets and liabilities and to translate our revenue and expenses. We recognized a $121.9 million net remeasurement loss in the first quarter of 2014 when we changed from the official rate of 6.3 to SICAD II exchange rate, which averaged approximately 50 since opening on March 24, 2014 until implementation of the SIMADI process in February 2015. The after-tax effect of these losses attributable to noncontrolling interests was $39.7 million in the first quarter of 2014.

Remeasurement rates during 2015. Through February 11, 2015, we used the SICAD II process to remeasure our bolivar denominated monetary assets and liabilities into U.S. dollars and to translate our revenue and expenses. Effective February 12, 2015, we began to use the exchange rate published for the SIMADI process to remeasure bolivar denominated monetary assets and liabilities and to translate our revenue and expenses. We recognized an $18.0 million net remeasurement loss in the first quarter of 2015. The after-tax effect of these losses attributable to noncontrolling interests was $5.6 million for the quarter.

Remeasuring our Venezuelan results using the SIMADI rate has had the following effects on our reported results:

·	Brink’s Venezuela became a much smaller component of Brink’s consolidated revenues and operating profit.

Brink’s Venezuela’s profit margin percentage declined as the historical U.S. dollar nonmonetary assets were not remeasured to a lower U.S. dollar basis but instead retained a historical higher basis which was used for depreciation and other expense attribution. Our nonmonetary assets were $51.5 million at March 31, 2015, and $55.0 million at December 31, 2014.

·	Our investment in our Venezuelan operations on an equity-method basis has declined. Our investment was $47.3 million at March 31, 2015, and $59.6 million at December 31, 2014.

·	Accumulated other comprehensive losses attributable to Brink’s shareholders related to Brink’s Venezuela were $112.8 million at March 31, 2015 and $113.0 million at December 31, 2014.

Our bolivar-denominated net monetary assets included in our consolidated balance sheets have declined. Our bolivar-denominated net monetary assets were $5.1 million (including $3.7 million of cash and cash equivalents) at March 31, 2015 and $23.5 million (including $12.6 million of cash and cash equivalents) at December 31, 2014.

Note 2 – Segment information

The Brink’s Company offers transportation and logistics management services for cash and valuables throughout the world. These services include:

·	Cash-in-Transit (“CIT”) Services – armored vehicle transportation of valuables

·	ATM Services – replenishing and maintaining customers’ automated teller machines; providing network infrastructure services

·	Global Services – secure international transportation of valuables

·	Cash Management Services

o	Currency and coin counting and sorting; deposit preparation and reconciliations; other cash management services

o	Safe and safe control device installation and servicing (including our patented CompuSafe® service)

o	Check and cash processing services for banking customers (“Virtual Vault Services”)

o	Check imaging services for banking customers

·	Payment Services – bill payment and processing services on behalf of utility companies and other billers at any of our Brink’s or Brink’s – operated payment locations in Latin America and Brink’s Money™ general purpose reloadable prepaid cards and payroll cards in the U.S.

·	Guarding Services – protection of airports, offices, and certain other locations in Europe and Brazil with or without electronic surveillance, access control, fire prevention and highly trained patrolling personnel

We identify our operating segments based on how our chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. Our CODM is our President and Chief Executive Officer. Our CODM evaluates performance and allocates resources to each operating segment based on operating profit or loss, excluding income and expenses not allocated to segments.

We have nine operating segments:

·	Each of the five countries within Largest 5 Markets (U.S., France, Mexico, Brazil and Canada)

·	Each of the three regions within Global Markets (Latin America, EMEA and Asia)

·	Payment Services

When reviewing segment operating results for the first quarter of 2015, the CODM determined that it was no longer useful to include the operations of Venezuela in the evaluation of the results for the Global Markets – Latin America segment. Accordingly, the Company changed the composition of its reportable segments effective January 1, 2015 to exclude the Venezuela business. The Venezuela operations are now reported as part of other items not allocated to segments for all periods presented. This change in the Company’s segment composition and segment performance measure provides the CODM with information to effectively assess segment performance and to make resource and allocation decisions. In addition, the removal of Venezuela from the Latin America segment provides our investors with an understanding of segment results that aligns with management’s view of the business, which is consistent with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting.

We believe that Brink’s has significant competitive advantages including:

·	brand name recognition

·	reputation for a high level of service and security

·	risk management and logistics expertise

·	global infrastructure and customer base

·	proprietary cash processing

·	proven operational excellence

·	high-quality insurance coverage and general financial strength.

	Revenues				Operating Profit (Loss)
	Three Months Ended March 31,				Three Months Ended March 31,
(In millions)	2015		2014		2015			2014

Reportable Segments:
U.S.	$	183.6		175.8	$	8.3			1.3
France		105.7		128.8		4.1			6.6
Mexico		85.7		100.2		7.9			3.7
Brazil		73.8		86.4		6.1			9.7
Canada		38.8		44.4		1.7			2.3
Largest 5 Markets		487.6		535.6		28.1			23.6
Latin America		90.8		90.6		16.5			10.1
EMEA		115.7		136.9		8.2			9.2
Asia		38.7		33.0		6.5			5.2
Global Markets		245.2		260.5		31.2			24.5
Payment Services		22.8		22.2		0.5			0.8
Total reportable segments		755.6		818.3		59.8			48.9

Reconciling Items:
Corporate expenses:
General, administrative and other expenses		-		-		(17.6	)		(29.6	)
Foreign currency transaction losses		-		-		(4.8	)		(0.7	)
Reconciliation of segment policies to GAAP		-		-		3.2			2.2
Other items not allocated to segments:
FX devaluation in Venezuela		-		-		(20.6	)		(123.3	)
Venezuela operations		20.5		131.3		2.7			34.4
2014 Reorganization and Restructuring		-		-		(1.5	)		-
Mexican settlement losses		-		-		(1.3	)		(0.8	)
U.S. retirement plans		-		-		(7.0	)		(6.0	)
Acquisitions and dispositions		-		-		-			1.2
Total	$	776.1		949.6	$	12.9			(73.7	)

FX devaluation in Venezuela The rate we use to remeasure operations in Venezuela declined significantly in February 2015 (from 52 to 170 bolivars to the U.S. dollar) and in March 2014 (from 6.3 to 50 bolivars to the U.S. dollar). These currency devaluations resulted in losses from the remeasurement of bolivar-denominated net monetary assets. Nonmonetary assets were not remeasured to a lower basis when the currency devalued. Instead, under highly inflationary accounting rules, these assets retained their higher historical bases, which excess is recognized in earnings as the asset is consumed resulting in incremental expense until the excess basis is depleted. Expenses related to these Venezuelan devaluations have not been allocated to segment results.

Venezuela operations We have excluded from our segment results all of our Venezuela operating results, including FX devaluation discussed separately above, due to management’s inability to allocate, generate or redeploy resources in-country or globally. In light of these unique circumstances, the Venezuela business is primarily self-supporting and largely independent of the rest of our global operations. As a result, the CODM, the Company’s Chief Executive Officer, assesses segment performance and makes resource decisions by segment excluding Venezuela operating results. Additionally, management believes excluding Venezuela from segment results makes it possible to more effectively evaluate the company’s performance between periods.

Factors considered by management in excluding Venezuela results:

·	Continued inability to repatriate cash to redeploy to other operations or dividend to shareholders

·	Highly inflationary environment

·	Fixed exchange rate policy

·	Continued currency devaluations and

·	Our difficulty raising prices and controlling costs

2014 Reorganization and Restructuring Brink’s reorganized and restructured its business in December 2014, eliminating the management roles and structures in its former Latin America and EMEA regions and implementing a plan to reduce the cost structure of various country operations by eliminating approximately 1,700 positions across its global workforce. Severance costs of $21.8 million associated with these actions were recognized in 2014. Additional charges related to severance and lease terminations of $1.5 million were recognized in the first quarter of 2015. These amounts have not been allocated to segment results.

Mexican settlement losses Employee termination costs in Mexico are accounted for as retirement benefits under FASB ASC Topic 715, Compensation — Retirement Benefits. Settlement charges related to these termination benefits have not been allocated to segment results.

U.S. retirement plans Costs related to our frozen U.S. retirement plans have not been allocated to segment results.

Acquisitions and dispositions Brink’s sold an equity investment in a CIT business in Peru in September 2014. The equity earnings have not been allocated to segment results.

Note 3 – Retirement benefits

Pension plans

We have various defined-benefit pension plans covering eligible current and former employees. Benefits under most plans are based on salary and years of service.

The components of net periodic pension cost for our pension plans were as follows:

	U.S. Plans						Non-U.S. Plans						Total
(In millions)	2015			2014			2015			2014			2015			2014

Three months ended March 31,

Service cost	$	-			-			2.9			3.5			2.9			3.5
Interest cost on projected benefit obligation		9.0			11.4			3.2			5.8			12.2			17.2
Return on assets – expected		(13.7	)		(15.4	)		(2.4	)		(3.8	)		(16.1	)		(19.2	)
Amortization of losses		7.8			7.2			1.3			0.5			9.1			7.7
Amortization of prior service cost		-			-			-			0.2			-			0.2
Settlement loss		-			-			2.3			0.7			2.3			0.7
Net periodic pension cost	$	3.1			3.2			7.3			6.9			10.4			10.1

Included in:
Continuing operations	$	3.1			3.2			6.2			6.5			9.3			9.7
Discontinued operations		-			-			1.1			0.4			1.1			0.4
Net periodic pension cost	$	3.1			3.2			7.3			6.9			10.4			10.1

We made cash contributions totaling $87.2 million to the primary U.S. pension plan in 2014. Based on current assumptions, as explained in our Annual Report on Form 10-K for the year ended December 31, 2014, we do not expect to make any additional contributions in the future.

Retirement benefits other than pensions

We provide retirement healthcare benefits for eligible current and former U.S., Canadian, and Brazilian employees. Retirement benefits related to our former U.S. coal operation include medical benefits provided by the Pittston Coal Group Companies Employee Benefit Plan for UMWA Represented Employees (the “UMWA plans”) as well as costs related to Black Lung obligations.

The components of net periodic postretirement cost related to retirement benefits other than pensions were as follows:

	UMWA Plans						Black Lung and Other Plans				Total
(In millions)	2015			2014			2015		2014		2015			2014

Three months ended March 31,

Interest cost on accumulated postretirement benefit obligations	$	4.5			4.8			0.7		0.6		5.2			5.4
Return on assets – expected		(5.2	)		(5.6	)		-		-		(5.2	)		(5.6	)
Amortization of losses		4.3			3.7			0.7		0.2		5.0			3.9
Amortization of prior service (credit) cost		(1.2	)		(1.1	)		0.5		0.4		(0.7	)		(0.7	)
Net periodic postretirement cost	$	2.4			1.8			1.9		1.2		4.3			3.0

Note 4 – Income taxes

	Three Months
	Ended March 31,
	2015			2014

Continuing operations
Provision for income taxes (in millions)	$	15.5			8.7
Effective tax rate		184.5	%		(10.9	) %

2015 Compared to U.S. Statutory Rate

The effective income tax rate on continuing operations in the first quarter of 2015 was higher than the 35% U.S. statutory tax rate, primarily due to the significant nondeductible expenses resulting from the currency devaluation in Venezuela in the first quarter.

Excluding the Venezuela nondeductible expenses and the associated tax implications, our effective tax rate on continuing operations in the first quarter is 54%. The rate is higher than 35% primarily due to higher tax expense resulting from cross border payments, nondeductible expenses in Mexico and the characterization of a French business tax as an income tax, partially offset by lower taxes resulting from the geographical mix of earnings.

2014 Compared to U.S. Statutory Rate

The effective income tax rate on continuing operations in the first quarter of 2014 was negative when compared to the 35% U.S. statutory tax rate, primarily due to the significant nondeductible remeasurement charge resulting from the currency devaluation in Venezuela in the first quarter. This remeasurement charge caused our first quarter before tax earnings to be negative and is largely nondeductible for tax purposes. Excluding the aforementioned Venezuela remeasurement charge and associated tax implications, our effective tax rate on continuing operations in the first quarter was 37%.

Note 5 – Accumulated other comprehensive income (loss)

Other comprehensive income (loss), including the amounts reclassified from accumulated other comprehensive income (loss) into earnings, was as follows:

	Amounts Arising During					Amounts Reclassified to
	the Current Period					Net Income (Loss)
												Total Other
				Income					Income			Comprehensive
(In millions)	Pretax			Tax		Pretax			Tax			Income (Loss)

Three months ended March 31, 2015

Amounts attributable to Brink's:
Benefit plan adjustments	$	(4.6	)		1.2		15.7			(5.2	)		7.1
Foreign currency translation adjustments		(48.9	)		-		-			-			(48.9	)
Gains (losses) on cash flow hedges		2.1			-		(2.1	)		-			-
		(51.4	)		1.2		13.6			(5.2	)		(41.8	)

Amounts attributable to noncontrolling interests:
Benefit plan adjustments		-			-		0.1			-			0.1
Foreign currency translation adjustments		(1.5	)		-		-			-			(1.5	)
		(1.5	)		-		0.1			-			(1.4	)

Total
Benefit plan adjustments(a)		(4.6	)		1.2		15.8			(5.2	)		7.2
Foreign currency translation adjustments		(50.4	)		-		-			-			(50.4	)
Gains (losses) on cash flow hedges(c)		2.1			-		(2.1	)		-			-
	$	(52.9	)		1.2		13.7			(5.2	)		(43.2	)

Three months ended March 31, 2014

Amounts attributable to Brink's:
Benefit plan adjustments	$	(1.7	)		0.3		11.7			(4.0	)		6.3
Foreign currency translation adjustments		(3.4	)		-		-			-			(3.4	)
Unrealized gains (losses) on available-for-sale securities		(0.1	)		-		0.1			-			-
Gains (losses) on cash flow hedges		(0.3	)		-		0.9			-			0.6
		(5.5	)		0.3		12.7			(4.0	)		3.5

Amounts attributable to noncontrolling interests:
Benefit plan adjustments		-			-		0.1			-			0.1
Foreign currency translation adjustments		(0.8	)		-		-			-			(0.8	)
		(0.8	)		-		0.1			-			(0.7	)

Total
Benefit plan adjustments(a)		(1.7	)		0.3		11.8			(4.0	)		6.4
Foreign currency translation adjustments		(4.2	)		-		-			-			(4.2	)
Unrealized gains (losses) on available-for-sale securities(b)		(0.1	)		-		0.1			-			-
Gains (losses) on cash flow hedges(c)		(0.3	)		-		0.9			-			0.6
	$	(6.3	)		0.3		12.8			(4.0	)		2.8

(a)

The amortization of prior experience losses and prior service cost is part of total net periodic retirement benefit cost when reclassified to net income. Net periodic retirement benefit cost also includes service costs, interest costs, expected returns on assets, and settlement costs. The total pretax expense is allocated between cost of revenues and selling, general and administrative expenses on a plan-by-plan basis:

	Three Months
	Ended March 31.
(In millions)	2015		2014

Total net periodic retirement benefit cost included in:
Cost of revenues	$	9.9		9.9
Selling, general and administrative expenses		3.7		2.8

(b)	Gains and losses on sales of available-for-sale securities are reclassified from accumulated other comprehensive loss to the income statement when the gains or losses are realized. Pretax amounts are classified in the income statement as interest and other income (expense).

(c)	Pretax gains and losses on cash flow hedges are classified in the income statement as:

·	other operating income (expense) ($2.3 million gains in the three months ended March 31, 2015 and $0.7 million losses in the three months ended March 31, 2014)

·	interest and other income (expense) ($0.2 million losses in the three months ended March 31, 2015 and $0.2 million losses in the three months ended March 31, 2014)

The changes in accumulated other comprehensive loss attributable to Brink’s are as follows:

(In millions)	Benefit Plan Adjustments			Foreign Currency Translation Adjustments			Unrealized Gains (Losses) on Available-for-Sale Securities		Gains (Losses) on Cash Flow Hedges			Total

Balance as of December 31, 2014	$	(571.7	)		(222.1	)		1.4		0.4			(792.0	)
Other comprehensive income (loss) before reclassifications		(3.4	)		(48.9	)		-		2.1			(50.2	)
Amounts reclassified from accumulated other comprehensive loss		10.5			-			-		(2.1	)		8.4
Other comprehensive income (loss) attributable to Brink's		7.1			(48.9	)		-		-			(41.8	)
Balance as of March 31, 2015	$	(564.6	)		(271.0	)		1.4		0.4			(833.8	)

Note 6 – Fair value of financial instruments

Investments in Available-for-sale Securities

We have investments in mutual funds designated as available-for-sale securities that are carried at fair value in the financial statements. For these investments, fair value was estimated based on quoted prices categorized as a Level 1 valuation. Valuation levels were defined in our 2014 Form 10-K.

Fixed-Rate Debt

The fair value and carrying value of our fixed-rate debts are as follows:

	March 31,		December 31,
(In millions)	2015		2014

Unsecured notes issued in a private placement
Carrying value	$	92.9		100.0
Fair value		97.8		105.6

The fair value estimate of our unsecured private-placement notes is based on the present value of future cash flows, discounted at rates for similar instruments at the respective measurement dates, which we have categorized as a Level 3 valuation.

There were no transfers in or out of any of the levels of the valuation hierarchy in the first three months of 2015.

Other Financial Instruments

Other financial instruments include cash and cash equivalents, accounts receivable, floating rate debt, accounts payable and accrued liabilities. The financial statement carrying amounts of these items approximate the fair value.

We have outstanding foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies. Our short term contracts have a weighted average maturity of approximately one month. In 2013, we entered into a cross-currency swap to hedge against the change in value of a long-term intercompany loan denominated in a currency other than the lending subsidiary’s functional currency. The fair values of these currency contracts, including the cross-currency swap, are determined using Level 2 valuation techniques and are based on the present value of net future cash payments and receipts. Accordingly, the fair values will fluctuate based on changes in market interest rates and the respective foreign currency to U.S. dollar exchange rate. The fair values of our outstanding short-term foreign currency contracts at March 31, 2015, were not significant. At March 31, 2015, the fair value of the cross-currency swap was a net asset of $7.8 million. There were no transfers in or out of any of the levels of the valuation hierarchy in the first three months of 2015.

Note 7 – Share-based compensation plans

We have share-based compensation plans to retain employees and nonemployee directors and to more closely align their interests with those of our shareholders.

We have granted share-based awards to employees under the 2005 Equity Incentive Plan and the 2013 Equity Incentive Plan. These plans permit grants of restricted stock, restricted stock units, performance stock, performance units, stock appreciation rights, stock options, as well as other share-based awards to eligible employees. The 2013 Plan also permits cash awards to eligible employees. The 2005 Plan was replaced by the 2013 Plan effective in February 2013. No further grants of awards will be made under the 2005 Plan.

We have granted deferred stock units to directors through the Non-Employee Directors’ Equity Plan. Share-based awards were granted to directors and remain outstanding under the Non-Employee Directors’ Stock Option Plan and the Directors’ Stock Accumulation Plan, both of which have expired.

Outstanding awards at March 31, 2015 include performance share units, market share units, restricted stock units, deferred stock units and stock options.

Compensation Expense

Compensation expense is measured using the fair-value-based method. For employee and director awards considered equity grants, compensation expense is recognized from the grant date to the earlier of the retirement-eligible date or the vesting date.

Compensation expenses are classified as selling, general and administrative expenses in the consolidated statements of income (loss). Compensation expenses for the share-based awards were as follows:

	Compensation Expense
	Three Months Ended March 31,
(in millions)	2015			2014

Performance Share Units	$	2.5			2.5
Market Share Units		1.6			1.7
Restricted Stock Units		1.0			1.6
Deferred Stock Units		0.1			-
Stock Options		-			0.1
Share-based payment expense		5.2			5.9
Income tax benefit		(1.8	)		(2.0	)
Share-based payment expense, net of tax	$	3.4			3.9

Restricted Stock Units (“RSUs”)

We measure the fair value of RSUs based on the price of Brink’s stock at the grant date, adjusted for a discount for dividends not received or accrued during the vesting period.

The following table summarizes RSU activity during the first quarter of 2015:

	Shares (in thousands)			Weighted-Average Grant-Date Fair Value

Nonvested balance as of December 31, 2014		367.1		$	25.87
Granted		101.0			26.09
Cancelled		(13.1	)		26.19
Vested		(34.1	)		26.81
Nonvested balance as of March 31, 2015		420.9		$	25.84

Performance Share Units (“PSUs”)

The majority of PSUs granted contain a market condition in addition to a performance condition. We measure the fair value of these PSUs at the grant date using a Monte Carlo simulation model.

A small portion of PSUs granted contain only a performance condition. We measure the fair value of these PSUs based on the price of Brink’s stock at the grant date, adjusted for a discount for dividends not received or accrued during the vesting period.

The following table provides the terms and weighted average assumptions used in the valuation of those PSUs containing a market condition:

Terms and Assumptions Used to Estimate Fair Value of PSUs	PSUs Granted in the First Quarter of 2015
Date of Measurement	February 20, 2015(a)

Terms of awards:
Performance period	Jan. 1, 2015 to
	Dec. 31, 2017
Beginning average price of Brink’s common stock	$	23.19

Assumptions used to estimate fair value:
Expected dividend yield(b)		0	%
Expected stock price volatility		30	%
Risk-free interest rate		1.0	%
Contractual term in years		2.9

Weighted-average fair value estimate per share	$	28.97

(a)	Represents the date awards were granted to employee.

(b)	PSUs are not entitled to dividends during the performance period.

The following table summarizes all PSU activity during the first quarter of 2015:

	Shares (in thousands)			Weighted-Average Grant-Date Fair Value

Nonvested balance as of December 31, 2014		343.6		$	24.06
Granted		189.3			28.93
Cancelled		(9.4	)		24.04
Vested		-			-
Nonvested balance as of March 31, 2015		523.5		$	25.82

Market Share Units (“MSUs”)

We measure the fair value of MSUs at the grant date using a Monte Carlo simulation model. The following table provides the terms and the weighted average assumptions used in the valuation of the MSUs:

Terms and Assumptions Used to Estimate Fair Value of MSUs	MSUs Granted in the First Quarter of 2015
Date of Measurement	February 20, 2015(a)

Terms of awards:
Performance period	Jan. 1, 2015 to
	Dec. 31, 2017
Beginning average price of Brink’s common stock	$	23.19

Assumptions used to estimate fair value:
Expected dividend yield(b)		0	%
Expected stock price volatility		30	%
Risk-free interest rate		1.0	%
Contractual term in years		2.9

Weighted-average fair value estimate per share	$	30.37

(a)	Represents the date awards were granted to employee.

(b)	MSUs are not entitled to dividends during the performance period.

The following table summarizes all MSU activity during the first quarter of 2015:

	Shares (in thousands)		Weighted-Average Grant-Date Fair Value

Nonvested balance as of December 31, 2014		163.3	$	25.47
Granted		108.6		30.37
Cancelled		-		-
Vested		-		-
Nonvested balance as of March 31, 2015		271.9	$	27.42

Note 8 – Shares used to calculate earnings per share

	Three Months
	Ended March 31,
(In millions)	2015		2014

Weighted-average shares:
Basic(a)		49.1		48.9
Effect of dilutive stock options and awards		-		-
Diluted		49.1		48.9

Antidilutive stock options and awards excluded from denominator		1.4		2.1

(a)

We have deferred compensation plans for directors and certain of our employees. Amounts owed to participants are denominated in common stock units. Each unit represents one share of common stock. The number of shares used to calculate basic earnings per share includes the weighted-average units credited to employees and directors under the deferred compensation plans. Accordingly, included in basic shares are 0.5 million weighted-average units in the three months ended March 31, 2015, and 0.5 million weighted-average units in the three months ended March 31, 2014.

Note 9 – Income (loss) from discontinued operations

	Three Months
	Ended March 31,
(In millions)	2015			2014

Gain (loss) from operations(a)(b)	$	(2.4	)		0.9
Loss on sale(a)		(0.7	)		-
Adjustments to contingencies of former operations(c):
Insurance recoveries related to BAX Global indemnification(d)		-			1.0
Other		(0.1	)		(0.1	)
Income (loss) from discontinued operations before income taxes		(3.2	)		1.8
Provision (benefit) for income taxes		(0.8	)		1.3
Income (loss) from discontinued operations, net of tax	$	(2.4	)		0.5

(a)	Discontinued operations include gains and losses related to businesses that we recently sold or shut down. No interest expense was included in discontinued operations in the first three months of 2015 and 2014.

(b)	The loss from operations in 2015 included $1.0 million in pension settlement charges related to the Mexican parcel delivery service sold in February 2015.

(c)	Primarily related to former coal businesses and BAX Global, a former freight forwarding and logistics business.

(d)

BAX Global had been defending a claim related to the apparent diversion by a third party of goods being transported for a customer. In 2010, the Dutch Supreme Court denied the final appeal of BAX Global, letting stand the lower court ruling that BAX Global was liable for this claim. We had contractually indemnified the purchaser of BAX Global for this contingency. Through 2010, we had recognized $11.5 million of expense related to the payment made in satisfaction of the judgment. In 2014, we recovered $9.5 million from insurance companies related to this matter, of which $1.0 was recovered in the three months ended March 31, 2014.

Cash-in-transit operations sold or shut down:

·	Australia (sold in October 2014)

·	Puerto Rico (shut down in November 2014)

·	Netherlands (sold in December 2014)

Other operations sold:

·	In February 2015, we sold a small Mexican parcel delivery business which met the criteria for classification as a discontinued operation as of December 31, 2014.

Note 10 – Supplemental cash flow information

	Three Months
	Ended March 31,
(In millions)	2015		2014

Cash paid for:
Interest	$	5.6		6.5
Income taxes		11.4		19.0

Non-cash Investing and Financing Activities

We acquired $1.1 million in armored vehicles under capital lease arrangements in the first three months of 2015 compared to $1.3 million in armored vehicles, CompuSafe® units and other equipment acquired in the first three months of 2014.

Note 11 – Contingent matters

On June 19, 2008, a lawsuit captioned Del Valle Gurria S.C. v. Servicio Pan Americano de Protección, S.A. de C.V. was filed with the Twenty-third Civil Judge in the Federal District in Mexico (the “Court”) against Servicio Pan American de Proteccion, S.A. de C.V. (SERPAPROSA), the Mexico subsidiary that we acquired in November 2010. The plaintiff claims it is owed legal fees and corresponding value-added tax (VAT), interest and expenses related to its legal representation of SERPAPROSA in connection with tax audits covering the 1991, 1992 and 1994 fiscal years. On October 28, 2010, the Court issued a decision in favor of SERPAPROSA in part and the plaintiff in part, ordering SERPAPROSA to pay the plaintiff less than $1 million for its previous representation of SERPAPROSA. Between November 2010 and October 2013, the judgment was subject to multiple appeals by both parties to the Fifth Civil Court of Appeal of the Federal District in Mexico (the “Fifth Civil Court of Appeal”) and to the First Civil Collegiate Tribunal of the First Circuit in Mexico (the “First Civil Collegiate Tribunal”), and was remanded twice to the Court for determination of the fees to be paid to the plaintiff. On December 6, 2013, the Fifth Civil Court of Appeal issued a decision in favor of the plaintiff, modifying the lower court’s ruling and ordering SERPAPROSA to pay the plaintiff approximately $7 million plus VAT and interest for its previous representation of SERPAPROSA. SERPAPROSA filed a constitutional injunction on January 20, 2014 with the First Civil Collegiate Tribunal. The appeal was granted in favor of SERPAPROSA on September 17, 2014, ordering SERPAPROSA to pay approximately $2 million plus VAT and interest. The plaintiff filed an appeal on October 7, 2014, with the Mexico Supreme Court, which was rejected by the court on October 22, 2014. The plaintiff filed two subsequent actions appealing the Supreme Court’s October 22, 2014 decision, one before the First Appellate Court in Civil Matters of the First Circuit (the “Appellate Court”) and one with the Mexico Supreme Court. The action filed before the Appellate Court was rejected on February 16, 2015; the action filed with the Mexico Supreme Court is pending. The Company has accrued $2 million, reflecting the Company’s best estimate of exposure, although additional reasonably possible losses could be up to $10 million, based on currency exchange rates at March 31, 2015. The ultimate resolution of this matter is unknown and the estimated liability may change in the future. The Company denies the allegations asserted by the plaintiff and is vigorously defending itself in this matter.

In addition, we are involved in various other lawsuits and claims in the ordinary course of business. We are not able to estimate the loss or range of losses for some of these matters. We have recorded accruals for losses that are considered probable and reasonably estimable. Except as otherwise noted, we do not believe that the ultimate disposition of any of the lawsuits currently pending against the Company should have a material adverse effect on our liquidity, financial position or results of operations.

Note 12 – 2014 Reorganization and Restructuring

In the fourth quarter of 2014, we announced a reorganization and restructuring of Brink’s global organization (“2014 Reorganization and Restructuring”) to accelerate the execution of our strategy by reducing costs and providing for a more streamlined and centralized organization. As part of this program, we expect to reduce our total workforce by approximately 1,700 positions. We believe the restructuring will save annual direct costs of approximately $45 to $50 million in 2015 compared to 2014, excluding severance, lease termination, accelerated depreciation and pension settlement charges. The actions under this program are expected to be completed by the end of 2015 with cumulative pretax charges estimated to be approximately $25 million, primarily severance costs. In the first quarter of 2015, we recognized lease termination charges of $0.8 million and severance charges of $0.7 million related to the 2014 Reorganization and Restructuring.

The following table summarizes the costs incurred and payments made in our 2014 Reorganization and Restructuring accruals:

(In millions)	Severance Costs			Lease Terminations		Total

Balance as of January 1, 2015	$	21.4			-		21.4
Expenses		0.7			0.8		1.5
Payments		(9.9	)		-		(9.9	)
Foreign currency exchange effects		(1.0	)		-		(1.0	)
Balance as of March 31, 2015	$	11.2			0.8		12.0

THE BRINK’S COMPANY

and subsidiaries

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

The Brink’s Company offers transportation and logistics management services for cash and valuables throughout the world. These services include:

·	Cash-in-Transit (“CIT”) Services – armored vehicle transportation of valuables

·	ATM Services – replenishing and maintaining customers’ automated teller machines; providing network infrastructure services

·	Global Services – secure international transportation of valuables

·	Cash Management Services

o	Currency and coin counting and sorting; deposit preparation and reconciliations; other cash management services

o	Safe and safe control device installation and servicing (including our patented CompuSafe® service)

o	Check and cash processing services for banking customers (“Virtual Vault Services”)

o	Check imaging services for banking customers

·	Payment Services – bill payment and processing services on behalf of utility companies and other billers at any of our Brink’s or Brink’s – operated payment locations in Latin America and Brink’s Money™ general purpose reloadable prepaid cards and payroll cards in the U.S.

·	Guarding Services – protection of airports, offices, and certain other locations in Europe and Brazil with or without electronic surveillance, access control, fire prevention and highly trained patrolling personnel

We have nine operating segments:

·	Each of the five countries within Largest 5 Markets (U.S., France, Mexico, Brazil and Canada)

·	Each of the three regions within Global Markets (Latin America, EMEA and Asia)

·	Payment Services

We believe that Brink’s has significant competitive advantages including:

·	brand name recognition

·	reputation for a high level of service and security

·	risk management and logistics expertise

·	global infrastructure and customer base

·	proprietary cash processing

·	proven operational excellence

·	high-quality insurance coverage and general financial strength.

RESULTS OF OPERATIONS

Consolidated Review

Non-GAAP Financial Measures

We provide an analysis of our operations below on both a generally accepted accounting principles (“GAAP”) and non-GAAP basis. The purpose of the non-GAAP information is to report our operating profit, income from continuing operations and earnings per share without certain income and expense items and to reflect a constant tax rate for quarterly results equal to the full-year non-GAAP tax rate. The non-GAAP financial measures are intended to provide information to assist comparability and estimates of future performance. The Non-GAAP adjustments used to reconcile our GAAP results are described in detail on pages 32–33.

Definition of Organic Growth

Organic growth represents the change in revenues or operating profit between the current and prior period, excluding the effect of: acquisitions and dispositions, changes in currency exchange rates (as described on page 25) and the accounting effects of reporting Venezuela under highly inflationary accounting.

	Three months
	Ended March 31,						%
(In millions, except for per share amounts)	2015			2014			Change

GAAP
Revenues	$	776.1			949.6			(18	)
Operating profit (loss)		12.9			(73.7	)	fav
Income (loss) from continuing operations(a)		(0.6	)		(59.0	)	fav
Diluted EPS from continuing operations(a) (c)		(0.01	)		(1.21	)	fav

Non-GAAP(b)
Revenues	$	755.6			818.3			(8	)
Operating profit (loss)		40.6			20.8			95
Income from continuing operations(a)		20.1			7.3		fav
Diluted EPS from continuing operations(a) (c)		0.41			0.15		fav

(a)	Amounts reported in this table are attributable to the shareholders of Brink’s and exclude earnings related to noncontrolling interests.

(b)	Non-GAAP results are reconciled to the applicable GAAP results on pages 32–33.

(c)	For GAAP EPS purposes the number of shares for basic and diluted is 49.1 million. For non-GAAP purposes, the number of shares for diluted is 49.5 million.

GAAP Basis

Analysis of Consolidated Results: First Quarter 2015 versus First Quarter 2014

Consolidated Revenues Revenues decreased $173.5 million or 18% due to unfavorable changes in currency exchange rates ($329.0 million), partially offset by organic growth in Venezuela ($122.2 million), Latin America ($14.6 million) and the U.S. ($7.8 million). A significant portion of the reduction in revenues from currency exchange rates relates to a devaluation of the Venezuelan bolivar in February 2015. The U.S. dollar also strengthened against the euro and most currencies in Latin America, including the Brazilian real and Mexican peso. Revenues increased 16% on an organic basis due mainly to higher average selling prices (including the effects of inflation in several Latin American countries).

Consolidated Costs and Expenses Cost of revenues decreased 17% to $629.1 million as higher labor costs from inflation-based wage increases were more than offset by changes in currency rates, including devaluation in Venezuela. Selling, general and administrative costs decreased 20% to $112.3 million due primarily to changes in currency exchange rate, including devaluation in Venezuela, partially offset by higher labor costs.

Consolidated Operating Profit (Loss) Operating profit increased $86.6 million due mainly to:

·	a $121.9 million charge in 2014 related to the remeasurement of net monetary assets as a result of the 88% devaluation of Venezuela currency (compared to an $18.0 million charge in 2015),

·	organic profit improvement in Latin America ($7.7 million), the U.S. ($7.0 million) and Mexico ($5.3 million), and

·	lower corporate expenses ($14.0 million) on an organic basis,

partially offset by the negative impact of other changes in currency exchange rates ($19.5 million), including devaluation in Venezuela.

Consolidated Income (Loss) from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Loss from continuing operations attributable to Brink’s shareholders in 2015 decreased $58.4 million to a loss of $0.6 million primarily due to the operating profit increase mentioned above, partially offset by the corresponding lower loss attributable to noncontrolling interests ($22.7 million) and higher tax expense ($6.8 million). Earnings per share from continuing operations was negative $0.01, up from negative $1.21 in 2014.