Information by Segment and Geographic Area

The Company reports information about its operating segments using the "management approach," which is based on the way management organizes and reports the segments within the enterprise for making operating decisions and assessing performance. The Company's reportable segments are identified based upon differences in products, services and markets served.

In 2013, the Company had four reportable segments. These segments and the types of products and services offered include the following:

Harsco Metals & Minerals Segment

These businesses provide on-site, outsourced services to steel mills and other metal producers such as aluminum and copper. Services include slag processing; semi-finished inventory management; material handling; scrap management; in-plant transportation; and a variety of other services. Other major products and services include minerals and recycling technologies; environmental solutions for metals and mining customers' waste streams; and granules for asphalt roofing shingles as well as abrasives for industrial surface preparation derived from coal slag. Major customers include steel mills and asphalt roofing manufacturers.

Harsco Infrastructure Segment

Historically, major services included project engineering and equipment installation, as well as the sale and rental of scaffolding, shoring and concrete forming systems for industrial maintenance and capital improvement projects, civil infrastructure projects, non-residential construction, and international multi-dwelling residential construction projects. Services were provided to industrial and petrochemical plants; the infrastructure construction, repair and maintenance markets; commercial and industrial construction contractors; and public utilities. As a result of the Infrastructure transaction, this Segment no longer recognizes revenue from operations. See Note 3, Acquisitions and Dispositions, for additional information on the Infrastructure transaction.

Harsco Rail Segment

This Segment manufactures railway track maintenance equipment and provides track maintenance services. The major customers include private and government-owned railroads and urban mass transit systems worldwide.

Harsco Industrial Segment

Major products include industrial grating; air-cooled heat exchangers; and boilers and water heaters. Major customers include industrial plants and the non-residential, commercial and public construction and retrofit markets; and the natural gas exploration and processing industry.

Other Information

The measurement basis of segment profit or loss is operating income (loss). There are no significant inter-segment sales. Corporate assets include principally cash, prepaid taxes, fair value of derivative instruments and U.S. deferred income taxes. Countries with revenues from unaffiliated customers or net property, plant and equipment of ten percent or more of the consolidated totals (in at least one period presented) are as follows:

Information by Geographic Area (a)



	Revenues from Unaffiliated Customers
	Year Ended December 31
(In thousands)	2013		2012		2011
United States	$	1,021,770	$	1,108,051	$	1,087,454
United Kingdom	353,915		331,894		398,222
All Other	1,520,835		1,606,073		1,817,064
Totals including Corporate	$	2,896,520	$	3,046,018	$	3,302,740


(a)	Revenues are attributed to individual countries based on the location of the facility generating the revenue.



	Property, Plant and Equipment, Net
	Balances at December 31
(In thousands)	2013		2012		2011
United States	$	147,820	$	242,890	$	276,966
China	86,822		55,656		21,700
All Other	476,704		967,679		975,818
Totals including Corporate	$	711,346	$	1,266,225	$	1,274,484

In 2013, 2012 and 2011, sales to one customer, ArcelorMittal, principally in the Harsco Metals & Minerals Segment, were $268.6 million, $283.3 million and $361.9 million, respectively. For 2011, this amount represented more than 10% of the Company's consolidated revenues. These revenues were provided under multiple long-term contracts at several mill sites. In addition, the Harsco Metals & Minerals Segment is dependent largely on the global steel industry, and in 2013, 2012 and 2011 there were two customers, including ArcelorMittal, that each provided in excess of 10% of this Segment's revenues under multiple long-term contracts at several mill sites. The loss of any one of these contracts would not have a material adverse impact upon the Company's financial position or cash flows; however, it could have a material effect on quarterly or annual results of operations. Additionally, consolidation in the global steel industry has increased the Company's exposure to these customers. Should additional consolidations occur involving some of the steel industry's larger companies which are customers of the Company, it would result in an increase in concentration of credit risk for the Company.

In 2013 and 2011, the Harsco Rail Segment had two customers and in 2012 one customer that provided in excess of 10% of the Segments' revenues. In 2013, 2012, and 2011, the Harsco Industrial Segment had one customer that provided in excess of 10% of the Segment's revenues. The loss of any of these customers would not have a material adverse impact on the Company's financial positions or cash flows.

As a result of the Infrastructure transaction, the Company recorded an estimated non-cash long-lived asset impairment charge of $241.3 million during the third quarter of 2013. The Company recorded an additional loss on disposal of Harsco Infrastructure Segment of $30.0 million during the fourth quarter of 2013 related to the Infrastructure transaction.

In the fourth quarter of 2012, the Company recorded a non-cash goodwill impairment charge of $265.0 million related to the Harsco Infrastructure Segment. See Note 7, Goodwill and Other Intangibles, for additional disclosure regarding the goodwill impairment charge.

In the fourth quarter of 2011, the Company implemented the 2011/2012 Restructuring Program to further optimize rental assets and sales inventories in the Harsco Infrastructure Segment; reduce the number of administrative locations in the Harsco Infrastructure and Harsco Metals & Minerals Segments; and reduce the global workforce in the Harsco Infrastructure and Harsco Metals & Minerals Segments. The Harsco Infrastructure and Harsco Metals & Minerals Segments recorded pre-tax charges of $88.6 million and $5.5 million respectively, for the 2011/2012 Restructuring Program in 2012. The Harsco Infrastructure and Harsco Metals & Minerals Segments recorded pre-tax charges of $87.6 million and $12.8 million, respectively, for the 2011/2012 Restructuring Program in 2011.

Operating Information by Segment:



	Year Ended
	December 31
(In thousands)	2013			2012			2011
Revenues
Harsco Metals & Minerals	$	1,359,004		$	1,404,103		$	1,588,302
Harsco Infrastructure	885,377			937,293			1,108,293
Harsco Rail	286,167			352,036			300,029
Harsco Industrial	365,972			352,586			306,116
Total Revenues	$	2,896,520		$	3,046,018		$	3,302,740
Operating Income (Loss)
Harsco Metals & Minerals	$	80,801		$	85,523		$	109,593
Harsco Infrastructure	(275,762		)	(368,657		)	(125,555		)
Harsco Rail	28,299			56,079			58,746
Harsco Industrial	61,035			60,160			50,656
Corporate	(29,172		)	(7,895		)	(5,791		)
Total Operating Income (Loss)	$	(134,799	)	$	(174,790	)	$	87,649
Total Assets
Harsco Metals & Minerals	$	1,595,221		$	1,561,973		$	1,537,538
Harsco Infrastructure (a)	456,323			1,018,979			1,371,143
Harsco Rail	159,774			188,348			213,410
Harsco Industrial	83,189			81,035			80,784
Corporate	147,241			125,634			136,002
Total Assets	$	2,441,748		$	2,975,969		$	3,338,877
Depreciation and Amortization
Harsco Metals & Minerals	$	158,837		$	163,137		$	183,784
Harsco Infrastructure	58,449			89,814			107,621
Harsco Rail	10,362			10,116			10,133
Harsco Industrial	3,329			3,098			2,805
Corporate	6,064			5,952			6,098
Total Depreciation and Amortization	$	237,041		$	272,117		$	310,441
Capital Expenditures
Harsco Metals & Minerals	$	173,179		$	189,358		$	212,009
Harsco Infrastructure	62,889			63,137			88,456
Harsco Rail	3,502			4,133			4,497
Harsco Industrial	3,936			3,669			4,938
Corporate	2,641			4,726			3,201
Total Capital Expenditures	$	246,147		$	265,023		$	313,101

(a) The total assets of the Harsco Infrastructure Segment at December 31, 2013 represent assets held-for-sale, the value of the equity method investment in Brand, and related net deferred tax assets.

The Harsco Infrastructure Segment currently holds the Company's approximate 29% equity interest in the Infrastructure strategic venture that resulted from the Infrastructure transaction. The Company will record the Company's proportionate share of Brand's net income or loss one quarter in arrears. Accordingly, the Company's Consolidated Statement of Operations for the year ended December 31, 2013 does not include any amounts related to the Infrastructure strategic venture in the caption Equity in income of unconsolidated entities, net. The Company will begin recording the Company's proportionate share of Brand's net income or loss during the first quarter of 2014. See Note 5, Equity Method Investments, for additional information on the Company's equity method investment in Brand.

Reconciliation of Segment Operating Income (Loss) to Consolidated Income From Continuing Operations Before Income Taxes and Equity Income:



	Year Ended
	December 31
(In thousands)	2013			2012			2011
Segment operating income (loss)	$	(105,627	)	$	(166,895	)	$	93,440
General Corporate expense	(29,172		)	(7,895		)	(5,791		)
Operating income (loss) from continuing operations	(134,799		)	(174,790		)	87,649
Interest income	2,087			3,676			2,751
Interest expense	(49,654		)	(47,381		)	(48,735		)
Change in fair value to unit adjustment liability	(966		)	—			—
Income (loss) from continuing operations before income taxes and equity income	$	(183,332	)	$	(218,495	)	$	41,665

Information about Products and Services:



	Revenues from Unaffiliated Customers
	Year Ended
	December 31
(In thousands)	2013		2012		2011
Product Group
Outsourced, on-site services to steel mills and other metals producers and resource recovery technologies for the re-use of industrial waste stream by-products	$	1,292,511	$	1,333,248	$	1,518,902
Engineered scaffolding, concrete forming and shoring, and other access-related services, rentals and sales (a)	885,377		937,293		1,108,293
Railway track maintenance services and equipment	286,167		352,036		300,029
Air-cooled heat exchangers	180,738		175,896		142,960
Industrial grating products	142,355		136,157		113,388
Industrial abrasives and roofing granules	66,493		70,855		69,399
Heat transfer products	42,879		40,533		49,769
Consolidated Revenues	$	2,896,520	$	3,046,018	$	3,302,740

(a) The Engineered scaffolding, concrete forming and shoring, and other access-related services, rentals and sales product group is associated with the Harsco Infrastructure Segment which was disposed of as part of the Infrastructure transaction. See Note 3, Acquisitions and Dispositions, for additional information on the Infrastructure transaction.