2005 Financial Review
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 14 –Operating Leases
The Company leases facilities, vehicles, computers and other equipment under long-term operating and capital leases with varying terms. Most of the operating leases contain renewal and/or purchase options. The Company expects that in the normal course of business, the majority of operating leases will be renewed or replaced by other leases.
As of December 31, 2005, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year are included below. The table excludes operating leases related to BAX Global. See note 5 for information about leases related to BAX Global.
| (In millions) | Facilities | Vehicles | Other | Total | |
| 2006 | $ | 34.1 | 29.0 | 3.6 | 66.7 |
| 2007 | 27.8 | 23.4 | 2.9 | 54.1 | |
| 2008 | 20.7 | 17.9 | 2.4 | 41.0 | |
| 2009 | 15.9 | 11.1 | 1.7 | 28.7 | |
| 2010 | 11.6 | 7.5 | 1.0 | 20.1 | |
| Later years | 35.8 | 10.7 | 0.7 | 47.2 | |
| $ | 145.9 | 99.6 | 12.3 | 257.8 |
The table above includes lease payments for the initial accounting lease term and all renewal periods for most vehicles under operating leases used in Brink’s and BHS’ U.S. operations. If the Company were to not renew these leases, it would be subject to a residual value guarantee. The Company’s maximum residual value guarantee was $58.3 million at December 31, 2005. If the Company continues to renew the leases and pays all of the lease payments for the vehicles that have been included in the above table (which aggregate lease payments decline over four to eight years), this residual value guarantee will reduce to zero at the end of the final renewal period. In addition, the Company has $4.9 million of maximum guaranteed residuals on another operating lease.
Net rent expense included in continuing operations amounted to $84.3 million in 2005, $74.4 million in 2004 and $76.1 million in 2003.