Management’s Discussion and Analysis
MD&A Quicklinks
- Results of Operations
- Retained Liabilities and Assets of Former Natural Resource Operations
- Executive Overview
- Legacy Liabilities and Assets
- Projected Payments and Expenses of Retained Coal Liabilities and Administrative Costs
- Company-Sponsored Retiree Medical Benefits Obligations and VEBA
- Health Benefit Act Obligations
- Black Lung Obligations
- Withdrawal Liabilities
- Discontinued Operations
- Sale of Other Natural Resources Assets
- Liquidity and Capital Resources
Results of Operations
Other operating income, net
Other operating income, net, is a component of the operating segments’ previously discussed operating profits.
| Years Ended December 31, | % change | ||||||
|---|---|---|---|---|---|---|---|
| (In millions) | 2004 | 2003 | 2002 | 2004 | 2003 | ||
| Gains on sale of operating assets, net | $ | 5.9 | 7.7 | - | (23) | NM | |
| Impairment loss | (5.8) | (1.3) | - | 200+ | NM | ||
| Foreign currency transaction gains, net | 2.2 | 3.2 | 2.0 | (31) | 60 | ||
| Royalty income | 1.6 | 1.7 | 1.3 | (6) | 31 | ||
| Share in earnings of equity affiliates | 1.0 | 0.3 | 1.2 | 200+ | (75) | ||
| Penalties on unpaid value-added taxes | (0.4) | - | - | NM | NM | ||
| Other | 4.6 | 4.0 | 0.7 | 15 | 200+ | ||
| Total | $ | 9.1 | 15.6 | 5.2 | (42) | 200 | |
Other operating income in 2004 included $5.9 million of gains on sale of operating assets, net, which were primarily the result of disposing of residual assets of the Company’s former coal operations. The impairment loss in 2004 primarily relates to BAX Global’s decision to abandon the development and installation of software. Other operating income in 2003 was higher than 2002 due primarily to $7.7 million of gains on the sale of operating assets, including a $5.5 million gain on the sale of operating assets of Brink’s and $2.2 million in gains from the sale of residual assets of the former coal operations partially offset by losses on sales of other property and equipment.