Restructuring Programs

In recent years, the Company has instituted restructuring programs to balance short-term profitability goals with long-term strategies. A primary objective of these programs has been 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 expenses caption of the 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, were $63.0 million for the full year of 2013. This represents an incremental $8.0 million in benefits under this program when compared with the benefits realized in 2012. The majority of these savings related to the Harsco Infrastructure Segment, which was disposed of as part of the Infrastructure transaction. See Note 3, Acquisitions and Dispositions, for additional information related to the Infrastructure transaction. The Company incurred approximately $95 million and $101 million in pre-tax charges under this program in years ended December 31, 2012 and 2011, respectively.

The restructuring accrual for the 2011/2012 Restructuring Program at December 31, 2013 and the activity for the year ended December 31, 2013 are as follows:



(In thousands)	Accrual December 31 2012		Non-Cash Charges / Adjustments			Cash Payments			Foreign Currency Translation			Transfers Between Segments (a)			Other Transfers (b)			Remaining Accrual December 31 2013
Harsco Infrastructure Segment
Employee termination benefit costs	$	6,999	$	(1,000	)	$	(5,087	)	$	(245	)	$	—		$	(667	)	$	—
Cost to exit activities	9,000		(691		)	(3,269		)	(55		)	(3,248		)	(1,737		)	—
Total Harsco Infrastructure Segment	15,999		(1,691		)	(8,356		)	(300		)	(3,248		)	(2,404		)	—

Harsco Metals & Minerals Segment
Employee termination benefit costs	6,494		(139		)	(4,516		)	(33		)	—			—			1,806
Cost to exit activities	499		(207		)	(205		)	8			—			—			95
Total Harsco Metals & Minerals Segment	6,993		(346		)	(4,721		)	(25		)	—			—			1,901

Harsco Corporate
Employee termination benefit costs	13		2			(15		)	—			—			—			—
Cost to exit activities	—		—			(62		)	—			3,248			—			3,186
Total Harsco Corporate	13		2			(77		)	—			3,248			—			3,186

Total	$	23,005	$	(2,035	)	$	(13,154	)	$	(325	)	$	—		$	(2,404	)	$	5,087

(a) The Company transferred $3.2 million of lease obligations included in the cost to exit activities caption from the Harsco Infrastructure Segment to

Corporate. These are liabilities not included as part of the Infrastructure transaction and retained by the Company.

(b) As part of the Infrastructure transaction, the Company transferred certain restructuring program accruals to Brand.

Cash expenditures related to the remaining employee termination benefit costs accrual at December 31, 2013 are expected to be paid principally throughout 2014 with approximately $3.3 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 December 31, 2013 and the activity for the year ended December 31, 2013 are as follows:



(In thousands)	Accrual December 31 2012		Non-Cash Charges / Adjustments			Cash Payments			Foreign Currency Translation			Other Transfers (a)			Remaining Accrual December 31 2013
Harsco Infrastructure Segment
Cost to exit activities	$	6,791	$	(695	)	$	(506	)	$	(3	)	$	(5,587	)	$	—
Total	$	6,791	$	(695	)	$	(506	)	$	(3	)	$	(5,587	)	$	—

(a) As part of the Infrastructure transaction, the Company transferred certain restructuring program accruals to Brand.