2005 Financial Review
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
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) | 2005 | 2004 | 2003 | 2005 | 2004 | ||
| Gain on sale of equity interest | $ | - | - | 10.4 | - | (100) | |
| Gains on sale of operating assets and interests, net | 9.6 | 5.7 | 7.7 | 68 | (26) | ||
| Share in earnings of equity affiliates | 3.4 | 1.0 | 0.3 | 200+ | 200+ | ||
| Royalty income | 2.0 | 1.6 | 1.7 | 25 | (6) | ||
| Foreign currency transaction losses, net | (3.1) | (0.2) | - | 200+ | NM | ||
| Impairment loss | (1.3) | (0.3) | - | 200+ | NM | ||
| Penalties on unpaid value-added taxes | - | (0.4) | - | (100) | NM | ||
| Other | 4.4 | 3.7 | 1.9 | 19 | 95 | ||
| Total | $ | 15.0 | 11.1 | 22.0 | 35 | (50) | |
Other operating income in 2005 includes the recognition of a $5.8 million gain on a 2003 West Virginia coal asset sale. The gain was recognized in 2005 due to the formal transfer of liabilities to the buyer in 2005. In addition, a $3.1 million gain on the sale of residual assets and mineral rights related to former mining operations in Kentucky was recognized in 2005.
Other operating income in 2004 included $5.7 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.
In October 2003, the Company sold its 23.3% equity interest in MPI Mines Ltd., an Australian exploration and development company with interests in gold and nickel, for $18.8 million in cash and recognized a $10.4 million pretax gain in continuing operations.
Other operating income in 2003 included a $5.5 million gain on the sale of operating assets of Brink’s and gains of $2.2 million from the sale of residual assets of the former coal operations.