BRINKS CO

Previous wording

•Brink's Global Services ("BGS") – secure international transportation, pick-up, packaging, customs clearance, secure vault storage, and inventory management of high-value commodities

Current wording

•Brink's Global Services ("BGS") – secure international transportation, pick-up, packaging, customs clearance, secure vault storage, and inventory management of high-value commodities and goods

Previous wording

•Vaulting services – combines cash-in-transit services, cash management, vaulting and electronic reporting technologies for banks

Current wording

•Vaulting services – combines CIT services, cash management, vaulting and electronic reporting technologies for banks

Previous wording

•AMS – comprehensive solutions for ATM management, including cash forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, and installation services

Current wording

•AMS – comprehensive solutions for ATM management, including cash forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, first and second line maintenance, parts provisioning, funds settlements, and installation services

Previous wording

Consolidated Revenues Revenues increased $31.1 million due to organic increases in Latin America ($117.1 million), Europe ($22.9 million), North America ($10.4 million), and Rest of World ($5.4 million) and the favorable impact of acquisitions ($6.5 million), partially offset by the unfavorable impact of currency exchange rates ($131.2 million). The unfavorable currency impact was driven primarily by the Argentine peso. Revenues increased 13% on an organic basis primarily due to inflation-based price increases and organic growth in AMS and DRS revenue. See our definition of “organic growth” on page 50.

Current wording

Consolidated Revenues Revenues increased $10.6 million due to organic increases in Latin America ($24.8 million), Rest of World ($19.0 million), Europe ($15.5 million), and North America ($9.9 million), and the favorable impact of acquisitions ($7.2 million), partially offset by the unfavorable impact of currency exchange rates ($65.8 million). The unfavorable currency impact was driven primarily by the Mexican peso, Argentine peso, and Brazilian real. Revenues increased 6% on an organic basis primarily due to inflation-based price increases and organic growth in AMS and DRS revenue. See our definition of “organic growth” on page 40.

Previous wording

Consolidated Costs and Expenses Cost of revenues increased 1% to $2,808.6 million primarily due to the impact of higher revenue partially offset by the impact of exchange rates. Selling, general and administrative costs increased 15% to $597.2 million primarily due to organic increases in labor costs and higher transformation initiative costs, partially offset by the impact of currency exchange rates.

Current wording

Consolidated Costs and Expenses Cost of revenues increased 1% to $939.5 million primarily due to the impact of higher revenue partially offset by the impact of exchange rates. Selling, general and administrative costs decreased 7% to $186.3 million primarily due the impact of currency exchange rates and lower net compensation costs, professional fees, and administrative expenses.

Previous wording

Consolidated Operating Profit and Operating Profit Margin Operating profit margin decreased from 11.2% to 8.9%. Operating profit decreased $26.1 million due mainly to:

Current wording

Consolidated Operating Profit and Operating Profit Margin Operating profit margin decreased from 9.8% to 9.6%. Operating profit decreased $1.8 million due mainly to:

Previous wording

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $32.3 million to $124.5 million due to the increase in operating profit mentioned above and higher interest and other nonoperating income ($24.6 million), lower income tax expense ($5.5 million) and lower noncontrolling interest ($0.6 million), partially offset by higher interest expense ($23.8 million) . Earnings per share from continuing operations was $2.77, up from $1.95 in the first nine months of 2023.

Current wording

Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Income from continuing operations attributable to Brink’s shareholders increased $2.3 million to $51.6 million due to lower income tax expense ($10.6 million) and lower noncontrolling interest ($0.6 million), partially offset by lower interest and other nonoperating income ($5.4 million), the decrease in operating profit mentioned above, and higher interest expense ($1.7 million). Earnings per share from continuing operations was $1.19, up from $1.09 in the first quarter of 2024.

Previous wording

Non-GAAP Financial Measures The non-GAAP measures included in the table above and the analysis below present our operating profit, operating profit margin, income from continuing operations and earnings per share without certain income and expense items that do not reflect the regular earnings of the Company's operations. These non-GAAP measures are described in more detail on page 50 and are reconciled to comparable GAAP measures on pages 52-54.

Current wording

Non-GAAP Financial Measures The non-GAAP measures included in the table above and the analysis below present our operating profit, operating profit margin, income from continuing operations and earnings per share without certain income and expense items that do not reflect the regular earnings of the Company's operations. These non-GAAP measures are described in more detail on page 40 and are reconciled to comparable GAAP measures on pages 42-44.

Previous wording

Non-GAAP Consolidated Operating Profit and Non-GAAP Operating Profit Margin Non-GAAP operating profit margin increased from 11.7% to 12.1%. Non-GAAP operating profit increased $26.7 million due mainly to:

Current wording

Non-GAAP Consolidated Operating Profit and Non-GAAP Operating Profit Margin Non-GAAP operating profit margin increased from 11.7% to 12.1%. Non-GAAP operating profit increased $5.6 million due mainly to:

Previous wording

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders decreased $5.2 million to $212.7 million due to higher interest expense ($24.5 million) and higher income tax expense ($11.5 million), partially offset by the operating profit increase mentioned above, higher interest and other nonoperating income ($3.4 million), and lower noncontrolling interest ($0.7 million). Earnings per share from continuing operations was $4.73, up from $4.61 in the first nine months of 2023.

Current wording

Non-GAAP Consolidated Income from Continuing Operations Attributable to Brink’s and Related Per Share Amounts Non-GAAP income from continuing operations attributable to Brink’s shareholders decreased $4.3 million to $70.3 million due to higher income tax expense ($4.7 million), lower interest and other nonoperating income ($3.7 million), and higher interest expense ($1.7 million), partially offset by the operating profit increase mentioned above, and lower noncontrolling interest ($0.2 million). Earnings per share from continuing operations was $1.62, down from $1.65 in the first quarter of 2024.

Previous wording

Revenues and Operating Profit by Segment: Third Quarter 2024 versus Third Quarter 2023

Current wording

Revenues and Operating Profit by Segment: First Quarter 2025 versus First Quarter 2024

Previous wording

(d)See pages 42-44 for further information, where these items are discussed in more detail.

Current wording

(d)See pages 35-36 for further information, where these items are discussed in more detail.

Previous wording

Analysis of Segment Results: Third Quarter 2024 versus Third Quarter 2023

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Analysis of Segment Results: First Quarter 2025 versus First Quarter 2024

Previous wording

Revenues increased 3% ($32.7 million) primarily due to a 2% organic increase ($24.3 million) and the impact of acquisitions ($9.4 million). Organic revenue increased primarily due to price increases and growth in AMS and DRS revenue in the U.S., partially offset by lower BGS revenue. Operating profit increased $18.0 million due to a 14% organic increase ($17.2 million) and the impact of acquisitions ($0.8 million). The organic increase was primarily driven by the net impact of revenue mix and cost productivity improvements from transformation initiatives in the U.S., partially offset by technology and operational investments in the third quarter that impacted labor and fleet productivity.

Current wording

Revenues increased 3% ($12.1 million) due to a 2% organic increase ($9.9 million) and the impact of acquisitions ($4.3 million), partially offset by the unfavorable impact of currency exchange rates ($2.1 million). Organic revenue increased primarily due to price increases and growth in AMS and DRS, as well as BGS revenue. Operating profit increased 10% ($4.7 million) due to a 9% organic increase ($4.5 million). The organic increase was primarily driven by higher revenue, the net impact of revenue mix, and due to productivity initiatives.

Previous wording

Revenues decreased 5% ($18.6 million) due to the unfavorable impact of currency exchange rates ($135.7 million) primarily from the Argentine and Mexican peso, largely offset by a 34% organic increase ($117.1 million). The organic increase was primarily driven by inflation-based price increases across the segment with a majority of the impact from Argentina, as well as growth in AMS and DRS revenue. Operating profit increased 3% ($2.2 million) primarily due to a 70% organic increase ($47.7 million), mostly offset by the unfavorable impact of currency exchange rates ($45.5 million). The organic increase was driven by inflation-based price increases which outpaced the impact of labor and other cost increases.

Current wording

Revenues decreased 8% ($27.1 million) due to the unfavorable impact of currency exchange rates ($54.4 million) primarily from the Mexican peso, Argentine peso, and Brazilian real, partially offset by a 7% organic increase ($24.8 million) and the impact of acquisitions ($2.5 million). The organic increase was primarily driven by inflation-based price increases across the segment with a majority of the impact from Argentina, as well as growth in AMS and DRS revenue. Operating profit decreased 14% ($9.1 million) primarily due to the unfavorable impact of currency exchange rates ($10.4 million), partially offset by a 2% organic increase ($1.4 million). The organic increase was driven by inflation-based price increases which outpaced the impact of labor and other cost increases.

Previous wording

Revenues increased 10% ($27.7 million) due to an 8% organic increase ($22.9 million), the favorable impact of currency exchange rates ($2.9 million), and the impact of acquisitions ($1.9 million). Organic revenue increased primarily due to price increases and the growth of AMS and DRS revenue. Operating profit increased $4.3 million primarily due to an 11% organic increase ($3.8 million) driven by higher revenue outpacing the impact of labor and other cost increases across the segment, cost productivity, and the mix benefit of higher AMS and DRS revenue.

Current wording

Revenues increased 3% ($7.7 million) primarily due to an 5% organic increase ($15.5 million) partially offset by the unfavorable impact of currency exchange rates ($8.2 million). Organic revenue increased primarily due the growth of AMS and DRS revenue. Operating profit decreased 3% ($0.7 million) primarily due to the unfavorable impact of currency exchange rates ($0.8 million) and the impact of acquisitions ($0.2 million), partially offset by a 1% organic increase ($0.3 million) driven by higher revenue outpacing the impact of labor and other cost increases across the segment and the mix benefit of higher AMS and DRS revenue.

Previous wording

Revenues increased 2% ($13.4 million) due to a 3% organic increase ($17.3 million), partially offset by the unfavorable impact of currency exchange rates ($3.9 million). Organic growth in the segment was primarily due to continued growth in AMS and DRS revenue and supplemented by growth in BGS revenue. Operating profit increased 2% ($2.7 million) due to a 3% organic increase ($4.1 million), partially offset by the unfavorable impact of currency exchange rates ($1.1 million). The organic increase was primarily due the increase in higher-margin revenue.

Current wording

Revenues increased 9% ($17.9 million) due to a 9% organic increase ($19.0 million), partially offset by the unfavorable impact of currency exchange rates ($1.1 million). Organic growth in the segment was primarily due to growth in BGS revenue. Operating profit increased 22% ($9.0 million) primarily due to a 23% organic increase ($9.4 million). The organic increase was driven by higher revenue.

Previous wording

Corporate expenses for the three months ended September 30 2024 increased $16.4 million compared to the prior year period. The higher costs primarily resulted from increased charges for insurance and security losses ($9.4 million), higher net compensation costs ($4.2 million), a reduction in currency transaction gains ($3.1 million) and higher technology costs ($2.6 million). Corporate expenses for the first nine months of 2024 increased $1.0 million versus the prior year period. This was primarily driven by higher net compensation costs ($6.5 million), higher technology costs ($4.9 million) and higher professional and audit fees ($2.6 million), mostly offset by lower charges related to insurance and security losses ($13.1 million).

Current wording

Corporate expenses for the first three months of 2025 decreased $1.7 million versus the prior year period. This was primarily driven by lower net compensation costs ($4.1 million) and lower professional and audit fees ($3.0 million), partially offset by a reduction in currency transaction gains ($3.1 million) and higher charges related to insurance and security losses ($2.7 million).

Previous wording

In the first quarter of 2023, management completed the review and approval of remaining actions included in the previously announced restructuring program across our global business operations. In total, we have recognized $34.2 million in charges under this program, including $1.0 million in the first nine months of 2024. The actions under this program were substantially completed in 2024. Severance actions from this restructuring plan reduced our global workforce by approximately 3,200 positions.

Current wording

In the first quarter of 2023, management completed the review and approval of remaining actions included in the previously announced restructuring program across our global business operations. In total, we have recognized $34.2 million in charges under this program, including $0.2 million in the first three months of 2025. The actions under this program were substantially completed in 2024. Severance actions from this restructuring plan reduced our global workforce by approximately 3,200 positions.

Previous wording

As a result of other restructuring actions, we recognized net costs of $4.6 million in the first nine months of 2023, primarily severance costs. We recognized $0.9 million in net costs in the first nine months of 2024. The actions were substantially completed in 2024.

Current wording

As a result of other restructuring actions, we recognized net costs of $0.4 million in the first three months of 2024, primarily severance costs. We recognized $0.3 million in net costs in the first three months of 2025. The actions were substantially completed in 2024.

Previous wording

•Net charges of $2.4 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions.

Current wording

•Net charges of $0.9 million were incurred for post-acquisition adjustments to indemnification assets related to previous business acquisitions.

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•We incurred $0.5 million in integration costs in the first nine months of 2024.

Current wording

•We incurred $0.4 million in integration costs in the first three months of 2025.

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•Transaction costs related to business acquisitions were $0.6 million in the first nine months of 2024.

Current wording

•Transaction costs related to business acquisitions were $0.5 million in the first three months of 2025.

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•We incurred $2.0 million in integration costs, primarily related to PAI, in the first nine months of 2023.

Current wording

•We incurred $0.3 million in integration costs in the first three months of 2024.

Previous wording

•Compensation expense related to the retention of key PAI employees was $1.3 million in the first nine months of 2023.

Current wording

•Compensation expense related to the retention of key PAI employees was $0.1 million in the first three months of 2024.

Previous wording

Argentina highly inflationary impact Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, Argentine peso-denominated monetary assets and liabilities are now remeasured at each balance sheet date to the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In addition, nonmonetary assets retain a higher historical basis when the currency is devalued. The higher historical basis results in incremental expense being recognized when the nonmonetary assets are consumed. In the first nine months of 2024, we recognized $23.8 million in pretax charges in operating profit related to highly inflationary accounting, including currency remeasurement losses of $11.9 million. In the first nine months of 2023, we recognized $30.3 million in pretax charges in operating profit related to highly inflationary accounting, including currency remeasurement losses of $23.9 million. Highly inflationary adjustments also impact gains and losses on marketable securities due to the change in exchange rates. These non-cash charges are not part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

Current wording

Argentina highly inflationary impact Beginning in the third quarter of 2018, we designated Argentina's economy as highly inflationary for accounting purposes. As a result, Argentine peso-denominated monetary assets and liabilities are now remeasured at each balance sheet date to the currency exchange rate then in effect, with currency remeasurement gains and losses recognized in earnings. In addition, nonmonetary assets retain a higher historical basis when the currency is devalued. The higher historical basis results in incremental expense being recognized when the nonmonetary assets are consumed. In the first three months of 2025, we recognized $6.3 million in pretax charges in operating profit related to highly inflationary accounting, including currency remeasurement losses of $4.8 million. In the first three months of 2024, we recognized $1.6 million in pretax charges in operating profit related to highly inflationary accounting. Highly inflationary adjustments also impact gains and losses on marketable securities due to the change in exchange rates. These non-cash charges are not part of the Company's operations and revenue generating activities. Management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

Previous wording

Transformation initiatives During 2023, we initiated a multi-year program intended to accelerate growth and drive margin expansion through transformation of our business model in the U.S., with expectations to then leverage the transformation changes and learnings globally. The program is designed to help us standardize our commercial and operational systems and processes, drive continuous improvement and achieve operational excellence. Accordingly, we incurred $5.5 million of expense in 2023 and an additional $21.5 million in the first nine months of 2024. The transformation costs primarily include third party professional services and project management charges. These costs relate to a discrete program and are not reflective of our ongoing operating cost structure, and are not indicative of our core operating expenses or normal activities. Additionally, management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

Current wording

Transformation initiatives During 2023, we initiated a multi-year program intended to accelerate growth and drive margin expansion through transformation of our business model. The program is designed to help us standardize our commercial and operational systems and processes, drive continuous improvement and achieve operational excellence. Accordingly, we incurred $4.8 million of expense in the first three months of 2024 and an additional $5.1 million in the first three months of 2025. The transformation costs primarily include third party professional services and project management charges. These costs relate to a discrete program and are not reflective of our ongoing operating cost structure, and are not indicative of our core operating expenses or normal activities. Additionally, management has excluded these amounts when evaluating internal performance. As such, they have not been allocated to segment or Corporate results and are excluded from non-GAAP results.

Previous wording

Department of Justice investigation During the first nine months of 2024, we accrued $7.7 million in connection with a U.S. Department of Justice (the "DOJ") investigation. This amount represents an estimate for a potential resolution, as well as third-party legal costs associated with this matter. In the third quarter of 2024, we determined it was appropriate to exclude third-party costs associated with this matter from non-GAAP results, which for the current quarter consisted of legal costs. In August 2020, the Company received a subpoena issued in connection with the DOJ investigation, primarily related to cross-border shipments of cash and things of value and anti-money laundering (“AML”) compliance. Subsequently, in March 2024, as is commonly the case with this type of matter, the Company received a Notice of Investigation from the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) related to Bank Secrecy Act/AML compliance that involves substantially the same conduct that is subject to the DOJ’s investigation. These costs are not considered part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts, including both the estimate for a potential resolution and associated third-party costs, and the underlying investigation are such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years. Management has excluded these amounts when evaluating internal performance. Therefore, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results. See Note 14 for details.

Current wording

DOJ/FinCEN investigations During the first three months of 2025, we accrued $0.9 million in connection with the DOJ and FinCEN investigations, which represents third-party legal costs associated with this matter. In the first quarter of 2025, we reached resolutions with both the DOJ and FinCEN. These costs are not considered part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts and the underlying investigation are such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years. Management has excluded these amounts when evaluating internal performance. Therefore, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results. See Note 13 for details.

Previous wording

Chile antitrust matter We recognized an estimated loss of $9.5 million in the third quarter of 2021. In the first nine months of 2024, we recognized a $1.1 million adjustment and, in the first nine months of 2023, a $0.4 million adjustment to the estimated loss. The post-2021 adjustments were primarily related to changes in currency rates as well as third-party legal costs associated with this matter. In the third quarter of 2024, we determined it was appropriate to exclude third-party costs associated with this matter from non-GAAP results, which for the current quarter primarily consisted of legal costs. Overall, these charges related to a potential fine associated with an investigation by the Chilean Fiscalía Nacional Económica or "FNE" (the Chilean antitrust agency). The investigation is related to potential anti-competitive practices among competitors in the cash logistics industry in Chile. These costs are not considered part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts, including the estimated loss and associated third-party costs, is such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years of the underlying event. Management has excluded these amounts when evaluating internal performance. Therefore, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results. See Note 14 for details.

Current wording

subsequent years (which were primarily related to changes in currency rates). Overall, these charges related to a potential fine associated with an investigation by the Chilean Fiscalía Nacional Económica or "FNE" (the Chilean antitrust agency). The investigation is related to potential anti-competitive practices among competitors in the cash logistics industry in Chile. These costs are not considered part of the Company's operations and revenue generating activities. Additionally, the nature of these amounts, including the estimated loss and associated third-party costs, is such that they are not reasonably likely to recur within two years, nor were there similar charges within the prior two years of the underlying event. Management has excluded these amounts when evaluating internal performance. Therefore, these amounts have not been allocated to segment or Corporate results and are excluded from non-GAAP results. See Note 13 for details.

Previous wording

We currently serve customers in more than 100 countries, including 52 countries where we operate subsidiaries.

Current wording

We currently serve customers in more than 100 countries, including 51 countries where we operate subsidiaries.

Previous wording

See Note 1 to the condensed consolidated financial statements for a description of how we account for currency remeasurement for Argentine subsidiaries, beginning July 1, 2018 under the heading, "Argentina".

Current wording

At March 31, 2025, Argentina's economy remained highly inflationary for accounting purposes. See Note 1 for more details about our Argentina operations including a description of how we account for currency remeasurement for our Argentine subsidiaries and the potential impacts of converting local currency into U.S. dollars.

Previous wording

Our international operations conduct a majority of their business in local currencies. Because our financial results are reported in U.S. dollars, they are affected by changes in the value of various local currencies in relation to the U.S. dollar. Recent strengthening of the U.S. dollar relative to certain currencies has reduced some of our reported U.S. dollar revenues and operating profit and may continue through the end of 2024.

Current wording

Our international operations conduct a majority of their business in local currencies. Because our financial results are reported in U.S. dollars, they are affected by changes in the value of various local currencies in relation to the U.S. dollar. Future fluctuations in exchange rates could have either a positive or negative impact on our financial results.

Previous wording

Changes in exchange rates may also affect transactions that are denominated in currencies other than the functional currency. From time to time, we use short term foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies. At September 30, 2024, the notional value of our short term outstanding foreign currency forward and swap contracts was $1,001 million, with average contract maturities of approximately one month. These short term foreign currency forward and swap contracts primarily offset exposures in the euro, the British pound and the Mexican peso and are not designated as hedges for accounting purposes. Accordingly, changes in their fair value are recorded immediately in earnings. At September 30, 2024, the fair value of our short term foreign currency contracts was a net liability of approximately $13.2 million, of which $2.6 million was included in prepaid expenses and other and $15.8 million was included in accrued liabilities on the condensed consolidated balance sheet. At December 31, 2023, the fair value of these foreign currency contracts was a net liability of approximately $1.1 million, of which $8.7 million was included in prepaid expenses and other and $9.8 million was included in accrued liabilities on the condensed consolidated balance sheet.

Current wording

Changes in exchange rates may also affect transactions that are denominated in currencies other than the functional currency. From time to time, we use short term foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies. These short term foreign currency forward and swap contracts primarily offset exposures in the euro, the Mexican peso, and the British pound and are not designated as hedges for accounting purposes. Accordingly, changes in their fair value are recorded immediately in earnings. See Note 7 for more details regarding our economic hedges.

Previous wording

In the second quarter of 2021, we entered into ten cross currency swaps to hedge a portion of our net investments in certain of our subsidiaries with euro functional currencies. We elected to use the spot method to assess effectiveness for these derivatives that are designated as net investment hedges. 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 are sold or substantially liquidated. We have elected to exclude the spot-forward difference from the assessment of hedge effectiveness and are amortizing this amount separately on a straight-line basis over the term of these cross currency swaps.

Current wording

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. As net investment hedges for accounting purposes, we elected to use the spot method to assess effectiveness for these derivatives that are designated as net investment hedges. 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 are sold or substantially liquidated. We have elected to exclude the spot-forward difference from the assessment of hedge effectiveness and are amortizing this amount separately on a straight-line basis over the term of the cross currency swaps. See Note 7 for more details regarding these contracts.

Previous wording

Interest expense was higher in the first nine months of 2024 due to higher interest rates on corporate debt and overall higher borrowing levels. Borrowings were primarily used to fund growth in our DRS business and other general corporate initiatives.

Current wording

Interest expense was higher in the first three months of 2025 compared to the first three months of 2024 due to higher interest rates on corporate debt and overall higher borrowing levels. Borrowings were primarily used to fund growth in our DRS business and other general corporate initiatives.

Previous wording

The decrease in the net income attributable to noncontrolling interests in the three months ended September 30, 2024, in comparison to the three months ended September 30, 2023, is primarily attributable to lower third quarter 2024 operating results reported by certain subsidiaries that are not wholly-owned. The net income attributable to noncontrolling interests in the nine months ended September 30, 2024, in comparison to the nine months ended September 30, 2023, is primarily attributable to lower 2024 operating results reported by certain subsidiaries that are not wholly-owned.

Current wording

The decrease in the net income attributable to noncontrolling interests in the three months ended March 31, 2025, in comparison to the three months ended March 31, 2024, is primarily attributable to lower first quarter 2025 operating results reported by certain subsidiaries that are not wholly-owned.

Previous wording

Non-GAAP measures are reconciled to comparable GAAP measures either in the tables below or in “Liquidity and Capital Resources” section. Amounts reported for prior periods have been updated in this report to present information consistently for all periods presented. Most of the reconciling adjustments are described in Other Items Not Allocated to Segments above on pages 42–44. Additional reconciling items include the following:

Current wording

Non-GAAP measures are reconciled to comparable GAAP measures either in the tables below or in “Liquidity and Capital Resources” section. Amounts reported for prior periods have been updated in this report to present information consistently for all periods presented. Most of the reconciling adjustments are described in Other Items Not Allocated to Segments above on pages 35–36. Additional reconciling items include the following:

Previous wording

(c)See “Other Items Not Allocated To Segments” on pages 42-44 for details.

Current wording

(c)See “Other Items Not Allocated To Segments” on pages 35-36 for details.

Previous wording

(d)Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 28.1% for 2024 and was 24.8% for 2023.

Current wording

(d)Non-GAAP income from continuing operations and non-GAAP EPS have been adjusted to reflect an effective income tax rate in each interim period equal to the full-year non-GAAP effective income tax rate. The full-year non-GAAP effective tax rate is estimated at 27.8% for 2025 and was 23.2% for 2024.

Previous wording

(a)See “Other Items Not Allocated To Segments” on pages 42-44 for details.

Current wording

(a)See “Other Items Not Allocated To Segments” on pages 35-36 for details.