Business description of BRINKS-CO from last 10-k form

 
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PART I
ITEM 1.  BUSINESS
Based in Richmond, Virginia, The Brink’s Company is a premier provider of secure logistics and security solutions, including the transportation of valuables, cash logistics and other security-related services to banks and financial institutions, retailers, government agencies, mints, jewelers and other commercial operations around the world.  Other services provided are armored transportation, automated teller machine (“ATM”) replenishment and servicing; secure global transportation of valuables (“Global Services”); guarding services (including airport security or “Aviation Security"); currency deposit processing and cash management services.  Cash management services include cash logistics services (“Cash Logistics”), deploying and servicing safes and safe control device s (e.g. our patented CompuSafe® service), coin sorting and wrapping, integrated check and cash processing services (“Virtual Vault Services”), and providing bill payment acceptance and processing services to utility companies and other billers (“Payment Services”).   The Brink’s Company, along with its subsidiaries, is referred to as “we,” “our,” “Brink’s,” or “the Company” throughout this Form 10-K.
Brink’s brand and reputation spans across the globe. Our international network serves customers in more than 100 countries and employs approximately 71,000 people.  Our operations include approximately 1,100 facilities and 12,800 vehicles.  Our globally recognized brand, global infrastructure, expertise, longevity and heritage are important competitive advantages.  Over the past several years, we have changed from a conglomerate (with operations in the U.S. monitored home security, heavy-weight freight transportation, coal and other natural resource industries) into a company focused solely on the security industry.
Our operating segments consist of four geographies:  Europe, Middle East, and Africa (“EMEA”); Latin America; Asia Pacific; and North America, which are aggregated into two reportable segments: International and North America.  Financial information related to our two reportable segments (International and North America) and non-segment income and expenses are included in the consolidated financial statements on pages 69–118.
A significant portion of our business is conducted internationally, with 76% of our $3 billion in revenues earned outside the United States.  In the fourth quarter of 2010, we completed an acquisition in Mexico and another in Canada.  We expect that these operations will generate approximately $450 to 500 million in revenues in 2011.  Financial results are reported in U.S. dollars and are affected by fluctuations in the relative value of foreign currencies.  Our business is also subject to other risks customarily associated with operating in foreign countries including changing labor and economic conditions, political instability, restrictions on repatriation of earnings and capital, as well as nationalization, expropriation and other forms of restrictive government actions.  The future ef fects of these risks cannot be predicted.  Additional information about risks associated with our foreign operations is provided on pages 11, 43 and 68.
We have significant liabilities associated with our retirement plans, a portion of which has been funded.  See pages 51–53 and 57–61 for more information on these liabilities.  Additional risk factors are described on pages 10–14.
Available Information and Corporate Governance Documents
The following items are available free of charge on our website (www.brinks.com) as soon as reasonably possible after filing or furnishing them with the Securities and Exchange Commission (the “SEC”):
·  
Annual reports on Form 10-K
Quarterly reports on Form 10-Q
Current reports on Form 8-K, and amendments to those reports
In addition, the following documents are also available free of charge on our website:
Corporate governance policies
Business Code of Ethics
The charters of the following committees of our Board of Directors (the “Board”):  Audit and Ethics, Compensation and Benefits, and Corporate Governance and Nominating
Printed versions of these items will be mailed free of charge to shareholders upon request.  Such requests can be made by contacting the Corporate Secretary at 1801 Bayberry Court, P. O. Box 18100, Richmond, Virginia 23226-8100.
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General
Our 2010 segment operating profit was $209 million on revenues of $3.1 billion, resulting in a segment operating profit margin of 6.7%.
 
Amounts may not add due to rounding.
Brink’s operations are located around the world with the majority of our revenues (71%) and segment operating profits (79%) are earned outside of North America.

                                                              
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Brink’s serves customers in over 100 countries.  We have ownership interests in operations in approximately 50 countries and have agency relationships with other companies in other countries to complete our global network.  Brink’s ownership interests in subsidiaries and affiliated companies ranged from 36% to 100% at December 31, 2010.  In some instances, local laws limit the extent of Brink’s ownership interest.
International operations has three regions: Europe, Middle East and Africa (“EMEA”); Latin America and Asia Pacific.  On a combined basis, international operations generated 2010 revenues of $2.2 billion (71% of total) and segment operating profit of $165 million (79% of total).
Brink’s EMEA generated $1.2 billion in revenues in 2010 or (38% of Brink’s total 2010 revenues) and operates 261 branches in 24 countries.  Its largest operations are in France, the Netherlands and Germany.  In 2010, France accounted for $533 million or 44% of EMEA revenues (17% of total).
Brink’s Latin America generated $877 million in revenues in 2010 (28%) and operates 388 branches in nine countries.  Its largest operations are in Mexico, Brazil, Venezuela and Colombia.  Brazil accounted for $303 million or 35% of Latin American revenues (10% of total) in 2010.   Venezuela accounted for $186 million or 21% of Latin American revenues (6% of total) in 2010.   Mexico had $52 million of revenues in the last two months of 2010.
Brink’s Asia-Pacific generated $127 million in revenues in 2010 (4%) and operates 106 branches in nine countries.
North American operations include 181 branches in the U.S. and 53 branches in Canada.  North American operations generated 2010 revenues of $918 million (29% of total) and segment operating profit of $44 million (21% of total). We have included our newly acquired Mexican operations with our International – Latin America region.
The largest eight Brink’s operations (U.S., France, Brazil, Venezuela, the Netherlands, Colombia, Canada and Germany) accounted for $2.3 billion or 74% of total 2010 revenues.
(In millions)
2010
% total
% change
2009
% total
% change
2008
Revenues by region:
EMEA:
France
Other
Total
Latin America:
Brazil
Venezuela
Asia Pacific
Total International
North America
Total Revenues
Geographic financial information related to revenues and long-lived assets is included in the consolidated financial statements on page 86.
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Our primary services include:
Cash-in-transit (“CIT”) – armored vehicle transportation
Automated teller machine (“ATM”) – replenishment and servicing