UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 11-K [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2005 [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _______________ Commission file number 1-9148 ------ THE BRINK'S COMPANY 401(k) PLAN (Full title of the Plan) THE BRINK'S COMPANY (Name of the issuer of securities held pursuant to the Plan) P.O. BOX 18100 1801 BAYBERRY COURT RICHMOND, VIRGINIA 23226-8100 (Address of issuer's principal (Zip Code) executive offices)
THE BRINK'S COMPANY 401(k) PLAN Financial Statements and Schedules December 31, 2005 and 2004 (With Report of Independent Registered Public Accounting Firm) 2
THE BRINK'S COMPANY 401(k) PLAN Index to Financial Statements and Schedules December 31, 2005 and 2004 Pages ----- Report of Independent Registered Public Accounting Firm 4 Financial Statements - -------------------- Statements of Assets Available for Benefits December 31, 2005 and 2004 5 Statement of Changes in Assets Available for Benefits Year Ended December 31, 2005 6 Notes to Financial Statements 7-13 Schedules - --------- Schedule H, Line 4i, - Schedule of Assets (Held at End of Year) - December 31, 2005 14 Schedule H, Line 4j, - Schedule of Reportable Transactions for the Year Ended December 31, 2005 15 Other schedules not filed herewith are omitted because of the absence of conditions under which they are required to be filed. 3
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ------------------------------------------------------- The Pension Committee of the Board of Directors The Brink's Company: We have audited the accompanying statements of assets available for benefits of The Brink's Company 401(k) plan (the "Plan") as of December 31, 2005 and 2004, and the related statement of changes in assets available for benefits for the year ended December 31, 2005. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets available for benefits of the Plan as of December 31, 2005 and 2004, and the changes in assets available for benefits for the year ended December 31, 2005 in conformity with U.S. generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets (held at end of year) and reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan's management. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Richmond, Virginia June 29, 2006 4
THE BRINK'S COMPANY 401(k) PLAN Statements of Assets Available for Benefits December 31, (In thousands) 2005 2004 - ------------------------------------------------------------------------------- Investments at fair value: The Brink's Company common stock $ 113,739 112,480 Mutual funds 160,299 130,922 Common trust fund 22,303 21,685 Participant loans 16,815 15,157 Investments at contract value 59,673 52,769 - ------------------------------------------------------------------------------- Total investments 372,829 333,013 Receivables: Participant contributions 1,389 1,598 Employer contributions 578 709 Interest 48 51 - ------------------------------------------------------------------------------- Total receivables 2,015 2,358 Cash and cash equivalents 347 75 - ------------------------------------------------------------------------------- Assets available for benefits $ 375,191 335,446 =============================================================================== See accompanying notes to financial statements. 5
THE BRINK'S COMPANY 401(k) PLAN Statement of Changes in Assets Available for Benefits Year Ended December 31, (In thousands) 2005 - ------------------------------------------------------------------------------ Income: Dividends $ 8,273 Interest 814 Net appreciation in fair value of investments: Participant-directed 6,757 Nonparticipant-directed 20,311 - ------------------------------------------------------------------------------ Net appreciation 27,068 Contributions: Participant 24,379 Employer: Cash 578 The Brink's Company common stock 10,278 Rollover 1,956 - ------------------------------------------------------------------------------ Total additions 73,346 Distributions to participants or beneficiaries (33,601) - ------------------------------------------------------------------------------ Net increase 39,745 Assets available for benefits: Beginning of year 335,446 - ------------------------------------------------------------------------------ End of year $ 375,191 ============================================================================== See accompanying notes to financial statements. 6
THE BRINK'S COMPANY 401(k) PLAN Notes to Financial Statements December 31, 2005 and 2004 1. Plan Information and Summary of Significant Accounting Policies Description of Plan ------------------- The Brink's Company 401(k) Plan (the "Plan") is a voluntary defined contribution plan sponsored by The Brink's Company and participating subsidiaries (the "Company"). During 2004 and 2005, full-time employees of the Company who are not members of a collective bargaining unit (unless the collective bargaining agreement provides specifically for and the Administrative Committee has approved participation) were eligible t o participate and were automatically enrolled on the first day of the month following thirty days of full time service. Effective January 1, 2006, the Plan was amended such that automatic enrollment for those who are eligible occurs immediately following thirty days of full time service. During 2005 and 2004, Company matching contributions commenced to participants once they had completed six months of service. Effective January 1, 2006, the Plan was amended such that Company matching contributions commence upon enrollment. The Plan is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). The following is a general description of certain provisions of the Plan. Participants should refer to the Plan document for a more complete description of the Plan's provisions. Withdrawals The Plan generally requires that pretax savings remain in the Plan while the participant is actively employed. However, the Plan allows two exceptions: (a) If the participant is age 59 1/2 or older, he or she may withdraw all or a portion of his or her pretax contributions. After each of these withdrawals, employer matching contributions are suspended for six months. (b) If the participant has a "financial hardship" (as that term is defined by Internal Revenue Service ("IRS") guidelines) it is possible to withdraw all or a portion of his or her pretax contributions in the Plan up to the amount needed to satisfy the hardship, regardless of age. During 2005, after each hardship withdrawal, employee pretax contributions were suspended for twelve months. Effective January 1, 2006, the Plan was amended such that after each hardship withdrawal, employee pretax contributions are suspended for six months. A participant may withdraw the following at any time without being suspended from the Plan in the following order: (a) All or a portion of after-tax contributions; (b) All or a portion of earnings attributable to after-tax contributions; (c) All or a portion of Company matching contributions in respect to after-tax contributions made prior to January 1, 1985; 7
(d) Any rollover contributions. Certain withdrawals of vested Company matching contributions made after December 31, 1984 require the employer to suspend making matching contributions on behalf of the participant for a period of six months. Vesting Schedule A participant is 100% vested in the value of his or her pretax contributions. Vesting in the Company matching contributions is based on years of service. Vesting in the Company matching contributions during 2005 and 2004 was based on years of service as follows: Less than 2 years 0% 2 but less than 3 years 20% 3 but less than 4 years 50% 4 but less than 5 years 75% 5 or more years 100% If a participant ends his or her employment with the Company and is subsequently rehired, his or her prior service with the Company is counted for vesting purposes. Once a participant reaches normal retirement age, he or she is 100% vested in Company matching contributions regardless of years of service. Forfeitures by the participants of the unvested portion of their account upon termination of employment with the Company are used to reduce future matching contributions of the Company to the Plan. Forfeitures reduced employer contributions by $1,121,000 in 2005. Employer contributions receivable are net of forfeitures of $98,000 and $102,000 at December 31, 2005 and 2004, respectively. Plan Termination Although it has not expressed any intent to do so, the Company reserves the right to amend, suspend, or discontinue the Plan in whole or in part at any time by action of the Company's Board of Directors, subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts. Basis of Presentation --------------------- The accompanying financial statements have been prepared on the accrual basis of accounting and present assets available for benefits and changes in those assets available for benefits. Investments and Investment Income --------------------------------- The fair value of common stock, mutual fund investments and common trust fund investments is determined by using quoted market prices. The contract value (contributions made plus interest accrued at the contract rate less withdrawals and fees) of certain investments approximates fair value. Participant loans are valued at cost, which approximates fair value. The cost of securities sold is determined principally on the basis of average cost at the time of sale. Purchases and sales of securities are recorded on a trade-date basis. Dividend income is recorded on the ex-dividend date, and interest income is recorded on the accrual basis. Use of Estimates ---------------- In accordance with U.S. generally accepted accounting principles, management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements. Actual results could differ materially from those estimates. 8
Benefit Payments ---------------- Benefits to participants or beneficiaries are recorded when paid. Risks and Uncertainties ----------------------- The Plan provides for various investment options that may be exposed to various risks, such as interest rate risk, credit risk and overall market volatility. Because of this, values of investment securities are expected to be volatile which could adversely affect participants' account balances and the amounts reported in the statement of assets available for benefits. 2. Participant Loans Participants can borrow, in exchange for a promissory note, up to the lesser of $50,000 less the highest outstanding loan during the previous 12 months or 50% of their aggregate vested account balance in the Plan, including rollovers, subject to certain maximum limits designated by the IRS. Each note is secured by a pledge of the participant account balance in the Plan to the extent of the unpaid balance. Repayments are generally made through level monthly payroll deductions. The term of a loan cannot exceed four and a half years for general purpose loans and fifteen years for principal residence loans. The interest rate charged on a participant loan is fixed for the duration of the loan at one percentage point above the prime rate as published in the Wall Street Journal at the inception of the loan. Interest paid by the participant is credited to the participant's account. 3. Contributions Employee Contributions ---------------------- During 2005, each participant could designate a contribution of up to the lesser of $14,000 or 30% of pretax earnings. For purposes of determining Plan contributions, pretax earnings are defined as regular pay including commissions and certain bonuses, but excluding overtime, premium pay and allowances. Amounts contributed are subject to limitations under IRS non-discrimination tests. Employee contributions may be divided among investment funds in multiples of 1% based upon the participant's election. Participants have the option to change their contribution percentages during each pay period. Participants who reached the age of 50 on or prior to December 31, 2005 were eligible to make additional pretax catch-up contributions during 2005. Catch-up contributions in 2005 were limited to the lesser of $4,000 or 45% of eligible pay. Catch-up contributions are scheduled to increase to $5,000 in 2006. After 2006, the limit will be adjusted for inflation. Participant contributions to the Plan may be invested in one of several investment funds managed by an affiliate of T. Rowe Price Trust Company ("T. Rowe Price") and two other fund alternatives not managed by the affiliate. Prior to September 2002, participant contributions could be invested in The Brink's Company common stock. After September 2002, no participant contributions could be directed into The Brink's Company common stock; however, existing participant-directed balances in The Brink's Company common stock were eligible to remain in The Brink's Company common stock. Any remaining investment in The Brink's Company common stock at December 31, 2007 will be sold and reinvested in the same manner as Employee Contributions. 9
Employer Contributions ---------------------- Employer matching contributions in 2005 were in the form of The Brink's Company common stock. In 2005, the Company matched 75% of participant contributions up to the first 5% of pretax earnings contributed. Participants may transfer their matching contributions in The Brink's Company common stock to other investment options when the matching contributions vest. Effective January 1, 2006, the Plan was amended such that the Company will match 125% of participant contributions up to the first 5% of pretax earnings contributed. Matching contributions are no longer made in the form of The Brink's Company common stock, but are made in cash and allocated to investment funds in the same manner as Employee Contributions. 4. Distributions Upon leaving the Company for any reason and after a formal disbursement request is made by the participant, the full fair value of an employee's contributions and related investment income and all vested Company matching contributions and related investment income will be distributed in cash, except payouts from The Brink's Company stock fund which will be made in shares unless cash payment is specifically requested. The value of any fractional shares will be distributed in cash. The Plan requires that vested balances less than $5,000 at the date of termination are to be distributed from the Plan. If a participant's employment with the Company terminates and he or she has a vested account balance of more than $5,000, he or she may elect to leave all of his or her contributions and related investment income and the vested portion of Company contributions and related investment income in the Plan. Participants who retire on or before their normal retirement date may elect to defer distribution until age 70 1/2. Participants who work beyond age 70 1/2, may defer distribution until they retire. 5. Related Party Transactions Certain Plan investments are shares of mutual funds, common trusts, and investment contracts managed by T. Rowe Price, the Trustee. Additionally, the Plan invests in shares of The Brink's Company common stock. Such transactions are deemed to be party-in-interest transactions of the Plan as are all participant loans. The Plan's investments in The Brink's Company common stock at December 31, 2005 and 2004, and purchases and sales during 2005, are as follows: (in thousands, except share amounts) Shares Fair Value Cost ----------------------------------------------------------------------- Shares held at December 31, 2004 2,846,155 $ 112,480 60,972 Purchases 337,282 12,482 12,482 Sales (809,427) (32,342) (17,939) Net appreciation - 21,119 - ----------------------------------------------------------------------- Shares held at December 31, 2005 2,374,010 $ 113,739 55,515 ----------------------------------------------------------------------- 6. Federal Income Taxes The Internal Revenue Service has determined and informed the Company by a letter dated July 2, 2003, that the Plan is designed in accordance with applicable sections of the Internal Revenue Code (IRC). Although the Plan has been amended since receiving the determination letter, the Company and the Plan's tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. 10
7. Investments During 2005, the Plan's investments (including investments bought, sold and held during the year) appreciated in value as follows: Year Ended December 31, 2005 ----------------------------------------------------------------------- (In thousands) Net appreciation of investments at fair value as determined by quoted market prices: The Brink's Company common stock $ 21,119 Mutual funds 4,936 Common trust funds 1,013 ----------------------------------------------------------------------- $ 27,068 ======================================================================= In 2005 and 2004, participants had the option to invest in the T. Rowe Price Stable Value Common Trust Fund (the "Stable Value Fund"), which generally invests in money market funds, short-term investments and benefit-responsive investment contracts, including synthetic investment contracts, issued by banks, insurance companies and other high-quality issuers. The Stable Value Fund seeks to maintain a constant net asset value and, as a result, allows participants to withdraw all or a portion of their investment at contract value. The investment contracts held by the Stable Value Fund are nontransferable, but provide for these benefit-responsive withdrawals by Plan participants at the contract value. The Stable Value Fund is presented in the financial statements at contract value, as reported to the Plan by the Trustee. If an event occurs that may impair the ability of the contract issuer to perform in accordance with the c ontract terms, fair value may be less than contract value. The investments in the Stable Value Fund may have fixed rates of interest for fixed periods of time, or may have rates of interest that vary during the contract period based on the contract issuer's investment experience or on another formula applicable under the contract. The average yield on investments held by the Stable Value Fund was approximately 4.5% at December 31, 2005 and 2004. Maturities of the investment contracts held by the Stable Value Fund at December 31, 2005 ranged from 2006 to 2035. Crediting interest rates on investments held by the Stable Value Fund ranged from 0% to 9% as of December 31, 2005. 11
Investments at fair value or contract value which represent 5% or more of the assets available for benefits at December 31 are as follows: December 31, 2005 2004 ---------------------------------------------------------------------- (In thousands) The Brink's Company common stock: Matching contributions (see notes 3 and 8) $ 109,395 107,872 Employee contributions (see note 3) 4,344 4,608 ---------------------------------------------------------------------- 113,739 112,480 T. Rowe Price Stable Value Common Trust Fund 59,673 52,769 T. Rowe Price Personal Strategy Balanced Fund 37,755 30,882 T. Rowe Price Blue Chip Growth Fund 22,934 21,671 T. Rowe Price Equity Index Trust 22,303 21,685 T. Rowe Price New Horizons Fund 22,038 19,392 ---------------------------------------------------------------------- 8. Nonparticipant-Directed Investments In September 2002, the Plan was amended to allow participants to diversify their vested matching contribution investments in The Brink's Company common stock. As a result, the vested portion of the matching contribution investment in The Brink's Company common stock is considered participant-directed; however, since changes in the components of vested and unvested matching contribution investments cannot be separately determined, all vested and unvested matching contribution investments in The Brink's Company common stock are disclosed as nonparticipant-directed in the financial statements. Information about the assets available for benefits and changes in assets available for benefits relating to the nonparticipant-directed investments is as follows: December 31, Nonparticipant-directed Investments 2005 2004 ----------------------------------------------------------------------- (In thousands) Assets available for benefits: The Brink's Company common stock: Vested matching contributions $ 101,590 100,033 Unvested matching contributions 7,805 7,839 ----------------------------------------------------------------------- 109,395 107,872 ----------------------------------------------------------------------- Employer contributions receivable to nonparticipant-directed accounts - 709 ----------------------------------------------------------------------- $ 109,395 108,581 ======================================================================= 12
Year Ended December 31, Nonparticipant-directed investments (continued) 2005 ----------------------------------------------------------------------- (In thousands) Changes in assets available for benefits: Contributions to nonparticipant-directed accounts $ 10,278 Dividends 257 Net appreciation 20,311 Distributions to participants or beneficiaries (9,424) Transfers to participant-directed investments (20,608) ----------------------------------------------------------------------- $ 814 ======================================================================= 9. Reconciliation to Form 5500 Assets available for benefits in the Form 5500 for the Plan reflects a reduction in assets for deemed distributions of certain participant loans. The accompanying financial statements do not include the reduction for deemed distributions as the participants to which deemed distributions relate continue to retain their assets within the Plan. The following reconciles assets available for benefits and benefits paid to participants or beneficiaries from the Form 5500 to the Plan financial statements: December 31, 2005 2004 ---------------------------------------------------------------------- (In thousands) Assets available for benefits per the Form 5500 $ 75,077 335,329 Cumulative deemed distributions 114 117 ---------------------------------------------------------------------- Assets available for benefits per the Statements of Assets Available for Benefits $ 75,191 335,446 ====================================================================== Year Ended December 31, 2005 -------------------------------------------------------------------------------------- (In thousands) Distributions to participants or beneficiaries per the Form 5500 $ 33,604 Change in the amount of deemed distributions 3 Benefits payable to participants at end of year (6) -------------------------------------------------------------------------------------- Distributions to participants or beneficiaries per the Statement of Changes in Assets Available for Benefits $ 33,601 ====================================================================================== 10. Subsequent Events Effective January 31, 2006, the Company finalized the sale of BAX Global, Inc. (BAX), a wholly owned subsidiary of the Company. Accordingly, contributions to BAX employees' participant accounts ceased as of December 31, 2005. BAX employees' participant accounts totaling $125.9 million as of December 31, 2005 were transferred out of the Plan on March 8, 2006. 13
THE BRINK'S COMPANY 401(k) PLAN Schedule H, Line 4i, Schedule of Assets (Held at End of Year) December 31, 2005 (In thousands, except share amounts) Identity of Issuer, Borrower, Description of Investment Including Maturity Date, Cost Current Lessor or Similar Party Rate of Interest, Collateral, Par or Maturity Value (nonparticipant-directed only) Value - ------------------------------------------------------------------------------------------------------------------------------------ *The Brink's Company 2,374,010 shares of The Brink's Company common stock; $1 par value $ 53,732 113,739 ING Investments, LLC 605,650 shares in the ING International Value Fund 10,823 Lord Abbett 227,651 shares in Lord Abbett Mid Cap Value Fund 5,102 *T. Rowe Price 59,673,129 shares in the Stable Value Common Trust Fund 59,673 *T. Rowe Price 647,955 shares in the Spectrum Income Fund 7,639 *T. Rowe Price 483,317 shares in the Equity Income Fund 12,527 *T. Rowe Price 622,801 shares in the Equity Index Trust 22,303 *T. Rowe Price 411,187 shares in the Small Cap Value Fund 15,177 *T. Rowe Price 694,319 shares in the New Horizons Fund 22,038 *T. Rowe Price 336,673 shares in the Personal Strategy Income Fund 5,074 *T. Rowe Price 2,011,453 shares in the Personal Strategy Balanced Fund 37,755 *T. Rowe Price 483,917 shares in the Personal Strategy Growth Fund 11,174 *T. Rowe Price 185,746 shares in the Mid-Cap Growth Fund 10,056 *T. Rowe Price 701,780 shares in the Blue Chip Growth Fund 22,934 *Participant Loans Participant loans at interest rates ranging from 5% to 10.5%, maturities not to exceed 4.5 years for general purpose and 15 years for principal residence 16,815 - ------------------------------------------------------------------------------------------------------------------------------------ $ 372,829 ==================================================================================================================================== The cost of participant-directed investments is not required. *Indicates a party-in-interest investment. See accompanying Report of Independent Registered Public Accounting Firm. 14
THE BRINK'S COMPANY 401(k) PLAN Schedule H, Line 4j, Schedule of Reportable Transactions For the Year Ended December 31, 2005 (In thousands, except number of purchase and sale amounts) Description of asset Cost Current value Identity of (include interest rate and Purchase Selling Lease Expense incurred of of asset on Net gain party involved maturity in case of a loan) Price Price Rental with Transaction Asset Transaction Date or (loss) - ------------------------------------------------------------------------------------------------------------------------------------ *The Brink's Company The Brink's Company Common Stock 27 Purchases $ 12,471 N/A N/A N/A $ 12,471 $ 12,471 N/A *The Brink's Company The Brink's Company Common Stock 226 Sales N/A $ 31,259 N/A N/A $ 17,411 $ 31,259 $13,848 ==================================================================================================================================== Transactions under an individual account plan that a participant or beneficiary directed with respect to assets allocated to his or her account are not treated for purposes of line 4j as reportable transactions. Transactions listed represent a series of transactions in a security of the same issue in excess of 5% of the plan market value as of December 31, 2004. * Indicates a party-in-interest investment. See accompanying Report of Independent Registered Public Accounting Firm. 15
EXHIBIT INDEX ------------- Exhibit Number Description - -------------- ----------- 23 Consent of Independent Registered Public Accounting Firm 16
SIGNATURE --------- Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. The Brink's Company 401(k) Plan ------------------------------- (Name of Plan) /s/ Frank T. Lennon --------------------------------- (Frank T. Lennon Vice President and Chief Administrative Officer) Date: June 29, 2006 17
Exhibit 23 Consent of Independent Registered Public Accounting Firm The Pension Committee of the Board of Directors The Brink's Company: We consent to the incorporation by reference in the registration statements (No. 333-02219, 333-78633, and 333-70766) on Form S-8 of The Brink's Company of our report dated June 29, 2006, with respect to the statements of assets available for benefits of The Brink's Company 401(k) Plan as of December 31, 2005 and 2004, the related statement of changes in assets available for benefits for the year ended December 31, 2005, and related supplemental schedules, which report appears in the 2005 Annual Report on Form 11-K of The Brink's Company 401(k) Plan. /s/ KPMG LLP Richmond, Virginia June 29, 2006