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Loss from Discontinued Operations
 9 Months Ended
Sep. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Income from discontinued operations [Text Block]

Note 10 – Loss from discontinued operations

    Three Months Nine Months 
    Ended September 30, Ended September 30, 
 (In millions) 2013 2012 2013 2012 
            
 Discontinued European operations(a):         
  Loss from operations(b)$ (3.9)  (8.6)  (28.3)  (20.1) 
  Loss from sale  (2.9)  -  (3.6)  - 
 Adjustments to contingencies of former operations  (0.3)  -  0.9  0.1 
 Loss from discontinued operations before income taxes  (7.1)  (8.6)  (31.0)  (20.0) 
 Provision (benefit) for income taxes  0.2  (0.8)  0.9  (2.4) 
 Loss from discontinued operations, net of tax$ (7.3)  (7.8)  (31.9)  (17.6) 

  • Discontinued operations include cash-in-transit operations in Germany, Poland, Turkey, and Hungary, and guarding operations in France, Morocco, and Germany. Revenues from these European operations were $17.4 million in the three months and $67.8 million in the nine months ended September 30, 2013, and $34.0 million in the three months and $101.5 million in the nine months ended September 30, 2012. Interest expense included in discontinued operations was $0.1 million in the three months and $0.2 million in the nine months ended September 30, 2013 and $0.1 million in the three months and $0.3 million in the nine months ended September 30, 2012.
  • As of September 30, 2013, loss from operations includes $15.9 million of severance expenses which will be required to be paid to terminate certain employees of the German cash-in-transit operations after the sale of the business is completed.  We intend to contribute a portion of the cost to fund the severance payments to the business prior to the execution of the sale transaction.

 

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 (no loss on sale for the nine months ended September 30, 2013), the divestiture in Poland closed in March 2013 ($0.3 million loss on sale for the nine months ended September 30, 2013), and the divestiture of the cash-in-transit operations in Germany is expected to be completed in the fourth quarter of 2013. We completed the divestiture of guarding operations in Morocco in December 2012 and recognized a loss on the sale of $0.6 million ($0.3 million in the fourth quarter of 2012 and $0.3 million in the second quarter of 2013).

 

In September 2013, we completed the sale of our entire business in Hungary ($2.8 million loss on sale). In July 2013, we completed the sale of our aviation security services business in Germany ($0.1 million loss on sale). In addition, we completed the shutdown of our cash-in-transit operations in Turkey in June 2013.

 

The results of these operations in Germany, Poland, Turkey, Hungary, France, and Morocco 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 cash-in-transit operations in Germany to be sold in 2013:

    Three Months Nine Months  
    Ended September 30, Ended September 30, 
 (In millions) 2013 2012 2013 2012 
            
 German CIT Operation:         
  Revenues$ 15.8  14.3  46.6  42.2 
  Losses from operations before tax  1.3  2.5  22.9  8.3