Income from Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

Income from discontinued operations [Text Block]

			Years Ended December 31,
(In millions)			2012	2011	2010
Discontinued European operations (a):
	Loss from operations before tax	$	(18.0)	(17.9)	(16.9)
	Deconsolidation of Belgium and write-down to fair value		-	-	(13.4)
	Settlement loss related to Belgium bankruptcy		-	(10.1)	-
	Loss on sale		(0.3)	-	-
Adjustments to contingencies of former operations (b):
	Workers’ compensation		(0.2)	(1.4)	(7.2)
	Gain from Federal Black Lung Excise Tax refunds		-	4.2	-
	Other		(0.3)	(0.6)	4.1
Loss from discontinued operations before income taxes			(18.8)	(25.8)	(33.4)
Provision (credit) for income taxes			(0.9)	(3.8)	(8.9)
Loss from discontinued operations, net of tax		$	(17.9)	(22.0)	(24.5)

• Discontinued operations include cash-in-transit operations in Germany, Poland and Belgium, and guarding operations in France and Morocco. Revenues from these European operations were $104.4 million in 2012, $119.2 million in 2011, and $145.3 million in 2010.
• Primarily relates to former coal businesses and BAX Global, a former freightforwarding and logistics business.

Discontinued European Operations

In 2012, we agreed to sell our cash-in-transit operations in Germany and Poland as well as event security operations in France. The divestiture in France closed in January 2013 and the divestitures in Germany and Poland are expected to be completed in the first half of 2013. We completed the divestiture of guarding operations in Morocco in December 2012 and recognized a loss on the sale of $0.3 million.

Our former cash-in-transit operation in Belgium filed for bankruptcy in November 2010, after a restructuring plan was rejected by local union employees, and was placed in bankruptcy on February 2, 2011. In 2010, we deconsolidated the Belgium subsidiary and recognized losses of $13.4 million related to the deconsolidation. Prior to the deconsolidation, the Belgium cash-in-transit business reported $34.4 million in revenues and $8.4 million in pretax losses from operations in 2010. We recognized a $10.1 million settlement loss in 2011 related to a claim filed by the court-appointed provisional administrators of our former Belgium subsidiary.

The results of the above European operations in Germany, Poland, France, Morocco and Belgium have been excluded from continuing operations and are reported as discontinued operations for the current and prior periods.

			Years Ended December 31,
	(In millions)		2012	2011	2010
German CIT Operation:
	Revenues	$	57.7	62.4	56.6
	Losses from operations before tax		(10.0)	(11.1)	(7.0)

Federal Black Lung Excise Tax (“FBLET”) refunds

The Energy Improvement and Extension Act of 2008 enabled taxpayers to file claims for FBLET refunds for periods prior to those open under the statute of limitations previously applicable to us. In 2009, we received $23.9 million of FBLET refunds and recognized the majority of these refunds as a pretax gain of $19.7 million in 2009. The statute of limitations expired in 2011 and we recognized a pretax gain of $4.2 million for the remaining portion of the refund.

Interest Expense

Interest expense included in discontinued operations was $0.1 million in 2012 and $0.2 million in 2010. No interest expense was included in discontinued operations in 2011. Interest expense recorded in discontinued operations includes only interest on third-party borrowings made directly by cash-in transit operations in Poland and Belgium.

Note 17 – Loss from Discontinued Operations

			Years Ended December 31,
(In millions)			2012	2011	2010
Discontinued European operations (a):
	Loss from operations before tax	$	(18.0)	(17.9)	(16.9)
	Deconsolidation of Belgium and write-down to fair value		-	-	(13.4)
	Settlement loss related to Belgium bankruptcy		-	(10.1)	-
	Loss on sale		(0.3)	-	-
Adjustments to contingencies of former operations (b):
	Workers’ compensation		(0.2)	(1.4)	(7.2)
	Gain from Federal Black Lung Excise Tax refunds		-	4.2	-
	Other		(0.3)	(0.6)	4.1
Loss from discontinued operations before income taxes			(18.8)	(25.8)	(33.4)
Provision (credit) for income taxes			(0.9)	(3.8)	(8.9)
Loss from discontinued operations, net of tax		$	(17.9)	(22.0)	(24.5)

• Discontinued operations include cash-in-transit operations in Germany, Poland and Belgium, and guarding operations in France and Morocco. Revenues from these European operations were $104.4 million in 2012, $119.2 million in 2011, and $145.3 million in 2010.
• Primarily relates to former coal businesses and BAX Global, a former freightforwarding and logistics business.

Discontinued European Operations

In 2012, we agreed to sell our cash-in-transit operations in Germany and Poland as well as event security operations in France. The divestiture in France closed in January 2013 and the divestitures in Germany and Poland are expected to be completed in the first half of 2013. We completed the divestiture of guarding operations in Morocco in December 2012 and recognized a loss on the sale of $0.3 million.

Our former cash-in-transit operation in Belgium filed for bankruptcy in November 2010, after a restructuring plan was rejected by local union employees, and was placed in bankruptcy on February 2, 2011. In 2010, we deconsolidated the Belgium subsidiary and recognized losses of $13.4 million related to the deconsolidation. Prior to the deconsolidation, the Belgium cash-in-transit business reported $34.4 million in revenues and $8.4 million in pretax losses from operations in 2010. We recognized a $10.1 million settlement loss in 2011 related to a claim filed by the court-appointed provisional administrators of our former Belgium subsidiary.

The results of the above European operations in Germany, Poland, France, Morocco and Belgium have been excluded from continuing operations and are reported as discontinued operations for the current and prior periods.

The table below shows revenues and losses from operations before tax for the German cash-in-transit operation to be sold in 2013:

			Years Ended December 31,
	(In millions)		2012	2011	2010
German CIT Operation:
	Revenues	$	57.7	62.4	56.6
	Losses from operations before tax		(10.0)	(11.1)	(7.0)

Federal Black Lung Excise Tax (“FBLET”) refunds

The Energy Improvement and Extension Act of 2008 enabled taxpayers to file claims for FBLET refunds for periods prior to those open under the statute of limitations previously applicable to us. In 2009, we received $23.9 million of FBLET refunds and recognized the majority of these refunds as a pretax gain of $19.7 million in 2009. The statute of limitations expired in 2011 and we recognized a pretax gain of $4.2 million for the remaining portion of the refund.

Interest Expense

Interest expense included in discontinued operations was $0.1 million in 2012 and $0.2 million in 2010. No interest expense was included in discontinued operations in 2011. Interest expense recorded in discontinued operations includes only interest on third-party borrowings made directly by cash-in transit operations in Poland and Belgium.