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 - Investments Held by VEBA Trust Note 6 - Former Natural Resource Operations Note 7 - Costs Associated With Exit Activities Note 8 - Property and Equipment Note 9 - Impairment of Long-Lived Assets Note 10 - Other Assets Note 11 - Accrued Liabilities Note 12 - Other Liabilities Note 13 - Long-Term Debt Note 14 - Accounts Receivable and Asset Securitization Note 15 - Operating Leases Note 16 - Equity-Based Compensation Plans Note 17 - Capital Stock Note 18 - Income Taxes Note 19 - Supplemental Cash Flow Information Note 20 - Other Operating Income, Net Note 21 - Other Nonoperating Income (Expense), Net Note 22 - Risk Management Note 23 - Other Commitments and Contingencies Note 24 - Selected Quarterly Financial Data (unaudited)

Note 2 - Segment Information

The Company conducts business in three different operating segments: Brink’s, BHS, and BAX Global (collectively “Business and Security Services”). These reportable segments are identified by the Company based on how resources are allocated and how operating decisions are made. Management evaluates performance and allocates resources based on operating profit or loss excluding corporate allocations.

Brink’s offers services globally including armored car transportation, automated teller machine (“ATM”) replenishment and servicing, currency and deposit processing including its “Cash Logistics” operations, coin sorting and wrapping, arranging the secure air transportation of valuables (“Global Services”) and the deploying and servicing of safes and safe control devices, including its patented CompuSafe‚ service. Brink’s operates in approximately 50 countries.

BHS offers monitored security services in North America primarily for owner-occupied, single-family residences. To a lesser extent, BHS offers security services for commercial properties. BHS typically installs and owns the on-site security systems, and charges fees to monitor and service the systems.

BAX Global provides transportation and supply chain management services on a global basis, specializing in the heavy freight market for business-to-business shipping. In North America, BAX Global provides overnight, second day and deferred freight delivery as well as supply chain management services. Internationally, BAX Global provides air and ocean delivery services, freight forwarding services, supply chain management services and international customs brokerage services. BAX Global has approximately 100 stations in the U.S., 160 stations in international locations and has agency agreements with approximately 240 agent locations.

The Company has no single customer that represents more than 10% of its total revenue.

(a) Former coal operations operating loss in 2003 represents ongoing expenses of former coal operations; these types of expenses were classified as discontinued operations in 2002 and 2001. Operating loss in 2002 represents impairment and other charges.
(b) Includes $87 million of prepaid pension assets in 2001.

(a) Excludes aircraft heavy maintenance expenditures and amortization.

Revenues are recorded in the country where the service is initiated/performed with the exception of most of BAX Global’s export freight service where revenue is shared among the origin and destination countries. The Company’s net assets in non-U.S. subsidiaries were $472.4 million at December 31, 2003 and $377.8 million at December 31, 2002.