Brink's to Exclude Retirement Costs from Non-GAAP Earnings; Adjustment Adds $0.28 to FY Non-GAAP Earnings
The Brink's Company (NYSE: BCO) announced today that its non-GAAP results will exclude retirement expenses related to its former operations and frozen U.S. pension plans. These expenses will continue to be included in the company's GAAP results.
The company's quarterly non-GAAP results for 2011 and 2010 have been adjusted to reflect the exclusion of retirement expenses. This adjustment adds $13 million (27 cents per share) to non-GAAP earnings for the first nine months of 2011 and $14 million (28 cents per share) to full-year 2010 earnings. GAAP results for these periods remain unchanged. A reconciliation to GAAP results for these periods is provided in the attached pages.
In the first nine months of 2011, approximately $19 million of U.S. retirement plan expenses (including UMWA retirement plan and Black Lung expenses) were reported in GAAP results as non-segment expense and approximately $2 million of additional expenses were included in North American segment results.
On December 31, 2011, the total underfunding related to U.S. pension plans and obligations related to former coal operations (UMWA, Black Lung and other) was $628 million versus $418 million at the end of 2010. From 2012 through 2016, the combined contributions to these plans are expected to be $39 million in 2012, $47 million in 2013, $57 million in 2014, $52 million in 2015 and $47 million in 2016. There are no cash outflows to the UMWA plan expected until 2023.
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