2005 Financial Review

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 19- Other Operating Income, Net

         
  Years Ended December 31,
(In millions)   2005 2004 2003
Gain on sale of equity interest $ - - 10.4
Gains on sale of operating assets and mineral rights, net   9.6 5.7 7.7
Share in earnings of equity affiliates   3.4 1.0 0.3
Royalty income   2.0 1.6 1.7
Foreign currency transaction losses, net   (3.1) (0.2) -
Impairment losses   (1.3) (0.3) -
Penalties on unpaid value-added taxes   - (0.4) -
Other   4.4 3.7 1.9
Total $ 15.0 11.1 22.0

 

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.

In November 2003, the Company sold substantially all of its remaining coal-related assets for $14 million in cash plus the assumption of reclamation and other liabilities for total proceeds of $28.8 million. The Company recognized gains of $5.8 million in 2005 and $0.3 million in 2004 as liabilities related to reclamation were formally transferred to the buyer.

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.