Other Expenses

During 2013, 2012 and 2011, the Company recorded pre-tax other expenses from continuing operations of $15.1 million, $93.8 million and $102.7 million, respectively. The major components of this Consolidated Statements of Operations caption are as follows:



	Other (Income) Expenses
(In thousands)	2013			2012			2011
Net gains	$	(4,657	)	$	(5,848	)	$	(6,162	)
Contingent consideration adjustments	—			—			(3,966		)
Employee termination benefit costs	3,928			31,158			36,174
Costs to exit activities	5,382			38,626			10,007
Product line rationalization	—			24,966			66,063
Impaired asset write-downs	9,688			7,152			—
Other (income) expense	769			(2,278		)	624
Total	$	15,110		$	93,776		$	102,740

Other expenses in 2013 were incurred in conjunction with impaired asset write-downs primarily in the Harsco Rail Segment, costs to exit activities primarily in the Harsco Metals & Minerals Segment and Corporate, employee termination benefit costs primarily in the Harsco Metals & Minerals Segment, partially offset by net gains primarily in the Harsco Infrastructure Segment.

Substantially all other expenses in 2012 and 2011 were incurred in conjunction with restructuring programs initiated within the Harsco Infrastructure Segment and the Harsco Metals & Minerals Segment in 2011 and the Harsco Infrastructure Segment in 2010. See Note 19, Restructuring Programs, for additional information on these restructuring programs.

Net Gains

Net gains result from the sales of redundant properties (primarily land, buildings and related equipment) and non-core assets. In 2013, gains related to assets sold principally in the United States and Western Europe. In 2012, gains related to assets sold principally in the United States. In 2011, gains related to assets sold principally in the United Kingdom and the United States.



	Net Gains
(In thousands)	2013			2012			2011
Harsco Metals & Minerals Segment	$	(1,043	)	$	(2,449	)	$	(1,666	)
Harsco Infrastructure Segment	(2,864		)	(2,198		)	(3,607		)
Harsco Industrial Segment	(750		)	(1,089		)	(889		)
Corporate	—			(112		)	—
Total	$	(4,657	)	$	(5,848	)	$	(6,162	)

Cash proceeds associated with these gains are included in the caption proceeds from sales of assets in the cash flows from investing activities section of the Consolidated Statements of Cash Flows.

Contingent Consideration Adjustments

Certain of the Company's acquisitions in prior years included contingent consideration features for which defined goals needed to be met by the acquired business in order for payment of the consideration. Each quarter until settlement of these contingencies, the Company assessed the likelihood that an acquired business would achieve the goals and the resulting fair value of the contingency. In accordance with U.S. GAAP for business combinations, these adjustments were recognized in the caption operating income (loss) from continuing operations in the Consolidated Statements of Operations as a component of the other expenses caption. The Company's assessment of these performance goals resulted in the following reductions to previously recognized contingent consideration liabilities:



	Contingent Consideration Adjustments
(In thousands)	2013		2012		2011
Harsco Infrastructure Segment	$	—	$	—	$	(3,966	)

All contingent consideration liabilities have been settled and there was no recorded contingent consideration liability as of December 31, 2013 and 2012.

Employee Termination Benefit Costs

Costs and the related liabilities associated with involuntary termination benefit costs associated with one-time benefit arrangements provided as part of an exit or disposal activity are recognized by the Company when a formal plan for reorganization is approved at the appropriate level of management and communicated to the affected employees. Additionally, costs associated with ongoing benefit arrangements, or in certain countries where statutory requirements dictate a minimum required benefit, are recognized when they are probable and estimable.

The employee termination benefit costs in 2013 related primarily to the Harsco Metals & Minerals Segment and were primarily in Latin America, Western Europe, the Middle East and Africa, and North America. The employee termination benefit costs in 2012 related primarily to the 2011/2012 Restructuring Program and were primarily in Western Europe, North America, the United Kingdom and the Asia-Pacific region. The employee termination benefits costs in 2011 related primarily to the 2011/2012 Restructuring Program and were primarily in Western Europe and the United Kingdom.



	Employee Termination Benefit Costs
(In thousands)	2013			2012		2011
Harsco Metals & Minerals Segment	$	3,561		$	8,082	$	18,533
Harsco Infrastructure Segment (a)	(326		)	17,291		16,546
Harsco Rail Segment	235			245		296
Harsco Industrial Segment	115			418		423
Corporate	343			5,122		376
Total	$	3,928		$	31,158	$	36,174

(a) Amounts related to the Harsco Infrastructure Segment during 2013 primarily relate to the finalization of certain accrued amounts associated with the Company's restructuring programs.

Costs to Exit Activities

Costs associated with exit or disposal activities are recognized as follows:

•

Costs to terminate a contract that is not a capital lease are recognized when an entity terminates the contract or when an entity ceases using the right conveyed by the contract. This includes the costs to terminate the contract before the end of its term or the costs that will continue to be incurred under the contract for its remaining term without economic benefit to the entity (e.g., lease run-out costs).


•	Other costs associated with exit or disposal activities (e.g., costs to consolidate or close facilities and relocate equipment or employees) are recognized and measured at their fair value in the period in which the liability is incurred.

In 2013, $5.4 million of exit costs were incurred, principally at Corporate related to the preliminary phases of the Infrastructure transaction and the Harsco Metals & Minerals Segment at various sites.

In 2012, $38.6 million of exit costs were incurred, principally related to Western Europe, the United States and the United Kingdom. This consists primarily of branch structure reduction and office rationalization costs in the Harsco Infrastructure and Harsco Metals & Minerals Segments. Costs to exit activities included $10.9 million of gains from currency translation adjustments recognized in earnings. The currency translation adjustments are non-cash items recognized when the Company has substantially liquidated its investment in a foreign entity. The Company exited certain countries and recognized such adjustment gains in conjunction with the Company's 2011/2012 Restructuring Program.

In 2011, $10.0 million of exit costs were incurred, principally related to the United States, the United Kingdom and Western Europe. This consists primarily of branch structure reduction and office rationalization costs in the Harsco Infrastructure and Harsco Metals & Minerals Segments.



	Costs to Exit Activities
(In thousands)	2013			2012		2011
Harsco Metals & Minerals Segment	$	2,705		$	3,627	$	1,313
Harsco Infrastructure Segment (a)	(254		)	34,820		8,694
Corporate	2,931			179		$	—
Total	$	5,382		$	38,626	$	10,007

(a) Amounts related to the Harsco Infrastructure Segment during 2013 primarily relate to the finalization of certain accrued amounts associated with the Company's restructuring programs.

Product Line Rationalization

The Company did not record any product line rationalization charges in 2013. The product line rationalization charges of $25.0 million and $66.1 million in 2012 and 2011, respectively, represent a write-down of certain rental assets and sale inventories in the Harsco Infrastructure Segment that were discontinued as part of the 2011/2012 Restructuring Program and the Fourth Quarter 2010 Harsco Infrastructure Program, to streamline and optimize product offerings. These charges are net of estimated salvage value. Salvage values were based on estimates of proceeds to be realized through the sale of this inventory outside the normal course of business.

Impaired Asset Write-downs

Impaired asset write-downs are measured as the amount by which the carrying amount of assets exceeds their fair value. Fair value is estimated based upon the expected future realizable cash flows including anticipated selling prices. Non-cash impaired asset write-downs are included in the caption other, net on the Consolidated Statements of Cash Flows as adjustments to reconcile net loss to net cash provided by operating activities.

In 2013, $9.7 million of impaired asset write-downs were incurred, principally in the Harsco Rail Segment related to certain contract services assets being written-down to the net realizable value. In 2012, impaired asset write-downs were recorded in the Harsco Metals & Minerals Segment principally in the Asia-Pacific region resulting from exiting an underperforming contract. There were no impaired asset write-downs recorded in 2011.



	Impaired Asset Write-downs
(In thousands)	2013		2012		2011
Harsco Metals & Minerals Segment	$	689	$	7,152	$	—
Harsco Rail Segment	8,999		—		—
Total	$	9,688	$	7,152	$	—