Brink's Company 2006 Annual Report

Home To Our Shareholders Brink's Incorportated Brink's Home Security 2006 Financial Review

Financial Highlights Management's Discussion and Analysis of Financial Condition and Results of Operations Operations Results of Operations Overview of Results Consolidated Review Brink's, Incorporated Brink's Home Security, Inc. Corporate Expense-The Brink's Company Former Operations Retained Liabilities and Assets of Former Operations Primary U.S. Pension Plan Discontinued Operations Other Operating Income, Net Nonoperating Income and Expense Income Taxes Minority Interest Foreign Operations Liquidity and Capital Resources Overview Summary of Cash Flow Information » Operating Activities Investing Activities Business Segment Cash Flows Financing Activities Capitalization Off Balance Sheet Arrangements Contractual Obligations Other Potential Use of Credit Contingent Matters Market Risk Exposures Critical Accounting Policies Deferred Tax Asset Valuation Allowance Goodwill and Property and Equipment Valuations Employee and Retiree Benefit Obligations Recent Accounting Pronouncements Forward-Looking Information Management's Report on Internal Control Over Financial Reporting Reports of Independent Registered Public Accounting Firm Consolidated Financial Statements Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Comprehensive Income Consolidated Statements of Shareholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Note 1 - Summary of Significant Accounting Policies Note 2 - Segment Information Note 3 - Earnings Per Share Note 4 - Employee and Retiree Benefits Note 5 - Income Taxes Note 6 - Property and Equipment Note 7 - Acquisitions Note 8 - Goodwill and Other Intangible Assets Note 9 - Other Assets Note 10 - Accrued Liabilities Note 11 - Other Liabilities Note 12 - Long-Term Debt Note 13 - Accounts Receivable Note 14 - Operating Leases Note 15 - Share-Based Compensation Plans Note 16 - Capital Stock Note 17 - Discontinued Operations Note 18 - Supplemental Cash Flow Information Note 19 - Other Operating Income, Net Note 20 - Interest and Other Nonoperating Income (Expense), Net Note 21 - Risk Management Note 22 - Other Commitments and Contingencies Note 23 - Selected Quarterly Financial Data (unaudited) Selected Financial Data Board of Directors and Senior Management Corporate Information		Operating Activities 2006 Operating cash flows from continuing operations decreased by $227.6 million in 2006 compared to 2005 primarily due to a $225 million contribution to the VEBA made in 2006. In addition, higher cash flows from operating activities from Brink's were partially offset by higher U.S. federal tax payments related to the sale of BAX Global. Operating cash flows from discontinued operations in 2006 includes $15.1 million of FBLET refunds, as well as payments of $20.4 million in July 2006 to settle the Company's withdrawal liabilities related to multi-employer pension plans. The Company contributed $225 million to the VEBA in 2006 using proceeds from the sale of BAX Global. The Company contributed $50 million in 2004. No contributions were made to the VEBA in 2005. 2005 Operating cash flow from continuing operations increased by $27.9 million in 2005 compared to 2004 primarily due to the absence of a contribution to the VEBA in 2005. This $50 million improvement in cash outflow for 2005 was partially offset by lower operating profit and an increase in receivables.