XML 40 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
Restructuring Programs
 3 Months Ended
Mar. 31, 2013
Restructuring and Related Activities [Abstract]  
Restructuring Programs
Restructuring Programs
In recent years, the Company instituted restructuring programs to balance short-term profitability goals with long-term strategies to establish platforms upon which the affected businesses can grow with reduced fixed investment and generate annual operating expense savings.  The restructuring programs have been instituted in response to the continuing impact of global financial and economic uncertainty on the Company’s end markets, particularly in the Company’s Harsco Infrastructure Segment. Restructuring costs incurred in these programs were recorded in the Other (income) expenses line of the Condensed Consolidated Statements of Operations. The timing of associated cash payments is dependent on the type of restructuring cost and can extend over a multi-year period.
2011/2012 Restructuring Program
Under the 2011/2012 Restructuring Program, the Company optimized rental assets and sale inventories by removing non-core assets under an expanded product rationalization and branch structure reduction program undertaken in its Harsco Infrastructure Segment and optimized office structures and reduced global workforce in the Harsco Infrastructure and Harsco Metals & Minerals Segments. Benefits under this program, in the form of reduced costs when compared to 2011, are expected to be approximately $63 million for the full year of 2013. This represents an incremental $8 million in benefits under this program when compared with the benefits realized in 2012. The restructuring accrual for the 2011/2012 Restructuring Program at March 31, 2013 and the activity for the three months then ended are as follows:
(In thousands)
 
Accrual
December 31
2012
 
Non-Cash
Charges / Other
Adjustments
 

 Cash
Expenditures
 
Foreign
Currency
Translation
 
Remaining
Accrual
March 31 2013
Harsco Infrastructure Segment
 
 

 
 

 
 

 
 

 
 

Employee termination benefit costs
 
$
6,999

 
$
(94
)
 
$
(3,300
)
 
$
(240
)
 
$
3,365

Cost to exit activities
 
9,000

 
(304
)
 
(1,629
)
 
(130
)
 
6,937

Total Harsco Infrastructure Segment (a)
 
15,999

 
(398
)
 
(4,929
)
 
(370
)
 
10,302

 
 
 
 
 
 
 
 
 
 
 
Harsco Metals & Minerals Segment
Employee termination benefit costs
 
6,494

 
—

 
(2,653
)
 
(144
)
 
3,697

Cost to exit activities
 
499

 
—

 
(66
)
 
(13
)
 
420

Total Harsco Metals & Minerals Segment
 
6,993

 
—

 
(2,719
)
 
(157
)
 
4,117

 
 
 
 
 
 
 
 
 
 
 
Harsco Corporate
 
 

 
 

 
 

 
 

 
 

Employee termination benefit costs
 
13

 
(5
)
 
(3
)
 
—

 
5

Total
 
$
23,005

 
$
(403
)
 
$
(7,651
)
 
$
(527
)
 
$
14,424

(a)    The table does not include $0.3 million of proceeds from asset sales under the 2011/2012 Restructuring Program for this Segment as this item did not impact the restructuring accrual during the three months ended March 31, 2013.
Cash expenditures related to the remaining employee termination benefit costs accrual at March 31, 2013 are expected to be paid principally throughout the remainder of 2013 with approximately $6.5 million of exit activity costs for lease terminations expected to be paid over the remaining life of the leases.

Fourth Quarter 2010 Harsco Infrastructure Program
Under the Fourth Quarter 2010 Harsco Infrastructure Program, the Harsco Infrastructure Segment reduced its branch structure; consolidated and/or closed administrative office locations; reduced its global workforce; and rationalized its product lines. The restructuring accrual for the Fourth Quarter 2010 Harsco Infrastructure Program at March 31, 2013 and the activity for the three months then ended are as follows:
(In thousands)
 
Accrual
December 31
2012
 
Non-cash Charges / Other Adjustments
 
Cash
Expenditures
 
Foreign
Currency
Translation
 
Remaining
Accrual
March 31 2013
Harsco Infrastructure Segment
 
 

 
 

 
 

 
 

 
 

Cost to exit activities
 
$
6,791

 
$
96

 
$
(180
)
 
$
(1
)
 
$
6,706


Approximately $6.2 million of the March 31, 2013 balance relates to payment of multiemployer pension plan withdrawal liabilities and is expected to be paid through 2023 under contractual payment terms with the related plan administrators.  The remaining balance primarily relates to costs for lease terminations that are expected to be paid over the remaining life of the leases.