Restructuring Programs

6 Months Ended

Jun. 30, 2014

Restructuring and Related Activities [Abstract]

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. Restructuring costs incurred in these programs were recorded in the Other expenses caption 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.

Harsco Metals & Minerals Improvement Plan ("Project Orion")

Under Project Orion, the Harsco Metals & Minerals Segment made organizational changes which are expected to improve return on capital and deliver a higher and more consistent level of service to customers by improving several core processes and simplifying the organizational structure. The Company incurred an $8.5 million charge related to Project Orion during the three months ended June 30, 2014. Phase one of Project Orion began in the second quarter of 2014 and will continue through the remainder of 2014. Phase two of Project Orion will begin in late 2014 or early 2015 and will result in an additional charge. The amount of the additional charge cannot be determined at this time.

The restructuring accrual for Project Orion at June 30, 2014 and the activity for the six months then ended were as follows:



(In thousands)	Expense Incurred in 2014		Other Adjustments		Cash Expenditures			Foreign Currency Translation		Remaining Accrual June 30 2014
Harsco Metals & Minerals Segment
Employee termination benefit costs	$	8,539	$	1,237	$	(1,437	)	$	2	$	8,341
Total	$	8,539	$	1,237	$	(1,437	)	$	2	$	8,341

Prior Restructuring Programs

The remaining accrual for restructuring programs was $2.9 million and $5.1 million at June 30, 2014 and December 31, 2013, respectively. The remaining accrual relates primarily to exit activity costs for lease terminations expected to be paid over the remaining life of the leases.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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