BRINKS COBCO

BRINKS CO Leases Disclosure

10-KFiled Feb 26, 20263 min read
Leases
We lease facilities, vehicles, certain DRS devices, ATMs, computers and other equipment under long-term operating and financing leases with varying terms. Most of the leases contain renewal and/or purchase options, exercisable at our sole discretion. The renewal periods differ by asset class and by country and are included in our determination of lease term if we determine we are reasonably certain to exercise the option. 

We have taken the component election for all material asset categories, except certain DRS devices. This election allows us to account for lease components (e.g., fixed payments or variable payments that depend on a rate that can be determined at commencement, including rent for the right to use the asset) together with non-lease components (e.g., other fixed payments that deliver a good or service including common-area maintenance costs) in the calculation of the right-of-use asset and corresponding liability. Variable costs, such as inflation adjusted payments for facilities, or non-lease components that vary periodically (included as part of the component election), are expensed as incurred.

Our leases do not contain any material residual value guarantees or material restrictive covenants.

The components of lease assets and liabilities were as follows:

December 31,
(In millions) Balance sheet classification20252024
Assets:
Operating lease assetsRight-of-use assets, net$388.7 $354.9 
Finance lease assetsProperty and equipment, net326.2 281.3 
Total leased assets$714.9 $636.2 
Liabilities:
Current:
OperatingAccrued liabilities$92.2 $78.2 
FinancingCurrent maturities of long-term debt72.7 61.4 
Noncurrent:
OperatingLease liabilities310.2 278.6 
FinancingLong-term debt197.7 173.7 
Total lease liabilities$672.8 $591.9 

The components of lease expense were as follows:

Years Ended December 31,
(In millions)202520242023
Operating lease cost(a)
$159.5 $148.7 $133.8 
Short-term lease cost30.3 23.3 25.5 
Variable lease cost(a)
91.019.919.6
Finance lease cost:
Amortization of related assets61.5 52.4 44.5 
Interest on related liabilities25.7 17.5 14.0 
Total lease cost$368.0 $261.8 $237.4 

(a) Includes expenses related to certain customer contracts in our AMS business, which contain embedded leases where variable lease costs are incurred for the space in which our ATMs reside. Prior periods have been adjusted to conform to the current year presentations.
Other information related to leases was as follows:
Years Ended December 31,
(In millions, except for lease term and discount rate)202520242023
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$134.5 $125.6 $107.9 
Operating cash flows from finance leases25.7 17.5 14.0 
Financing cash flows from finance leases75.9 64.6 55.5 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases156.2 132.2 104.3 
Finance leases76.2 75.1 92.0 
Weighted Average Remaining Lease Term
Operating leases6.4 years6.2 years6.5 years
Finance leases4.4 years4.2 years4.7 years
Weighted Average Discount Rate
Operating leases7.3 %7.0 %6.8 %
Finance leases7.1 %6.7 %6.2 %

As of December 31, 2025, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:
(In millions)
Facilities
DRS Devices
OtherTotal
2026$74.9 25.3 17.3 117.5 
202761.6 23.2 11.2 96.0 
202850.5 19.9 5.8 76.2 
202937.8 13.4 1.3 52.5 
203029.6 3.6 0.4 33.6 
Later years128.9 — 0.1 129.0 
Total lease payments
$383.3 85.4 36.1 504.8 
Less: Interest89.9 9.3 3.2 102.4 
Present value of lease liabilities$293.4 76.1 32.9 402.4 

As of December 31, 2025, minimum repayments of long-term debt under financing leases were as follows:
(In millions)
2026$88.2 
202778.3 
202858.6 
202938.7 
203028.5 
Later years28.6 
Total finance lease payments$320.9 
Less: Interest50.5 
Present value of finance lease liabilities$270.4 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 26, 2025
2023Feb 29, 2024
2022Mar 1, 2023
2021Feb 28, 2022
2020Mar 1, 2021
2019Feb 28, 2020
2018Feb 26, 2019
2017Mar 1, 2018
2016Feb 24, 2017
2015Feb 29, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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