Selected Financial Data

Five Years in Review

(a) Income (loss) from discontinued operations reflects the operations and losses on disposal of the Company’s former coal, natural gas, timber and gold operations. Some of the expenses recorded within discontinued operations through 2002 are continuing after the disposition of the coal business and are recorded within continuing operations in 2003. The expenses that continue primarily consist of postretirement and other employee benefits associated with Company-sponsored plans and black lung obligations; and administrative and legal expenses to oversee residual assets and retained benefit obligations. See note 6. In accordance with APB No. 30, the Company included these expenses within discontinued operations for periods prior to 2003. Beginning in 2003, expenses related to Company-sponsored pension and postretirement benefit obligations, black lung obligations and related administrative costs are recorded as a component of continuing operations. The amount of expenses related to postretirement and other employee benefits associated with the Company-sponsored plans and black lung obligations that were charged to discontinued operations were $2 million, $53 million, and $48 million for the years ended 2002, 2001, and 2000, respectively. As required by APB No. 30, expenses recorded in 2000 include both the actual expenses for that year plus an accrual of costs through the expected disposal period, which at the time was expected to be the end of 2001. Expenses recorded in 2001 represent an estimate of costs for 2002 due to the extension of the expected disposal period to the end of 2002. Future adjustments to contingent liabilities will continue to be recorded within discontinued operations.
(b) The Company’s results for 2000 include a noncash after-tax charge of $52.0 million, or $1.04 per diluted share, to reflect the cumulative effect of a change in accounting principle pursuant to guidance issued in Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements,” by the Securities and Exchange Commission in December 1999 and a related interpretation issued in October 2000. Pro forma income (loss) per share amounts in 1999 have been adjusted to show the effect of the change in accounting as if it had been in effect for all periods presented.
(c) Prior to January 14, 2000, the Company was comprised of three separate groups – Pittston Brink’s Group, Pittston BAX Group, and Pittston Minerals Group. The Pittston Brink’s Group included the Brink’s and BHS operations of the Company. The Pittston BAX Group included the BAX Global operations of the Company. The Pittston Minerals Group included the coal and other natural resources operations of the Company. Also, prior to January 14, 2000, the Company had three classes of common stock: Pittston Brink’s Group Common Stock (“Brink’s Stock”), Pittston BAX Group Common Stock (“BAX Stock”) and Pittston Minerals Group Common Stock (“Minerals Stock”), which were designed to provide shareholders with separate securities reflecting the performance of the Brink’s Group, the BAX Group and the Minerals Group, respectively. On December 6, 1999, the Company announced that its Board of Directors approved the elimination of the tracking stock capital structure by an exchange of all outstanding shares of Minerals Stock and BAX Stock for shares of Brink’s Stock. The exchange took place on January 14, 2000. The Brink’s Company common shares and per share amounts in 1999 are pro forma, computed using the same exchange formula used in the January 14, 2000 exchange.