Information by Segment and Geographic Area

The Company reports information about 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 2014, the Company had three reportable segments. These segments and the types of products and services offered include the following:

Harsco Metals & Minerals Segment

Global expertise in providing on-site services of material logistics, product quality improvement and resource recovery for iron, steel and metals manufacturing; as well as value added environmental solutions for industrial co-products. Major customers include steel mills and asphalt roofing manufacturers.

Harsco Industrial Segment

Major products include air-cooled heat exchangers; industrial grating; 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, natural gas processing and petrochemical industries.

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.

In 2013 and 2012, the Company's reportable segments also include the following:

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 is not included in the Company's results of operations for 2014. See Note 3, Acquisitions and Dispositions, for additional information on the Infrastructure Transaction.

Other Information

The measurement basis of segment profit or loss is operating income (loss). There are no significant inter-segment sales. Corporate assets, at December 31, 2014, include principally cash, prepaid taxes, fair value of derivative instruments, the equity method investment in Brand 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)	2014		2013		2012
United States	$	880,884	$	1,021,770	$	1,108,051
United Kingdom	257,885		353,915		331,894
All Other	926,969		1,520,835		1,606,073
Totals including Corporate	$	2,065,738	$	2,896,520	$	3,046,018


(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)	2014		2013		2012
United States	$	151,397	$	147,820	$	242,890
China	102,842		86,822		55,656
Brazil	69,515		63,161		65,019
All Other	339,490		413,543		902,660
Totals including Corporate	$	663,244	$	711,346	$	1,266,225

No single customer provided in excess of 10% of the Company's consolidated revenues in 2014, 2013, or 2012.

In 2014, 2013 and 2012, the Harsco Metals & Minerals Segment had two customers that each provided in excess of 10% of this Segment's revenues under multiple long-term contracts at several mill sites. 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 2014, 2013 and 2012, the Harsco Industrial Segment had one customer that provided in excess of 10% of the Segment's revenues. In 2014 and 2012, the Harsco Rail Segment had one customer and in 2013 two customers 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; however, it could have a material effect on quarterly or annual results of operations.

Operating Information by Segment:

The Company has reclassified segment operating results for the years ended December 31, 2013 and 2012 to conform to the revised manner in which the Company now allocates corporate expenses to operating segments as a result of changes in organizational structure resulting from the Infrastructure Transaction. The changes do not impact the Company's previously reported consolidated revenues from continuing operations, operating income (loss) from continuing operations or income (loss) from continuing operations before income taxes and equity income.



	Twelve Months Ended
	December 31
(In thousands)	2014			2013			2012
Revenues
Harsco Metals & Minerals	$	1,377,592		$	1,359,004		$	1,404,103
Harsco Infrastructure	—			885,377			937,293
Harsco Industrial	412,532			365,972			352,586
Harsco Rail	275,614			286,167			352,036
Total Revenues	$	2,065,738		$	2,896,520		$	3,046,018
Operating Income (Loss)
Harsco Metals & Minerals	$	9,858		$	95,310		$	99,668
Harsco Infrastructure	—			(255,326		)	(350,497		)
Harsco Industrial	63,680			58,977			58,062
Harsco Rail	37,137			27,710			54,727
Corporate	(47,204		)	(61,470		)	(36,750		)
Total Operating Income (Loss)	$	63,471		$	(134,799	)	$	(174,790	)
Total Assets
Harsco Metals & Minerals	$	1,472,277		$	1,595,221		$	1,561,973
Harsco Infrastructure (a)	—			456,323			1,018,979
Harsco Industrial	126,548			83,189			81,035
Harsco Rail	169,035			159,774			188,348
Corporate	495,941			147,241			125,634
Total Assets	$	2,263,801		$	2,441,748		$	2,975,969
Depreciation and Amortization
Harsco Metals & Minerals	$	159,844		$	158,837		$	163,137
Harsco Infrastructure	—			58,449			89,814
Harsco Industrial	4,928			3,329			3,098
Harsco Rail	5,591			10,362			10,116
Corporate	5,963			6,064			5,952
Total Depreciation and Amortization	$	176,326		$	237,041		$	272,117
Capital Expenditures
Harsco Metals & Minerals	$	186,784		$	173,179		$	189,358
Harsco Infrastructure	—			62,889			63,137
Harsco Industrial	9,298			3,936			3,669
Harsco Rail	3,120			3,502			4,133
Corporate	8,776			2,641			4,726
Total Capital Expenditures	$	207,978		$	246,147		$	265,023

(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.

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



	Twelve Months Ended
	December 31
(In thousands)	2014			2013			2012
Segment operating income (loss)	$	110,675		$	(73,329	)	$	(138,040	)
General Corporate expense	(47,204		)	(61,470		)	(36,750		)
Operating income (loss) from continuing operations	63,471			(134,799		)	(174,790		)
Interest income	1,702			2,087			3,676
Interest expense	(47,111		)	(49,654		)	(47,381		)
Change in fair value to the unit adjustment liability	(9,740		)	(966		)	—
Income (loss) from continuing operations before income taxes and equity income	$	8,322		$	(183,332	)	$	(218,495	)

Information about Products and Services:



	Revenues from Unaffiliated Customers
	Twelve Months Ended
	December 31
(In thousands)	2014		2013		2012
Key Product and Services Groups
Global expertise in providing on-site services of material logistics, product quality improvement and resource recovery for iron, steel and metals manufacturing; as well as value added environmental solutions for industrial co-products	$	1,377,592	$	1,359,004	$	1,404,103
Engineered scaffolding, concrete forming and shoring, and other access-related services, rentals and sales (a)	—		885,377		937,293
Railway track maintenance services and equipment	275,614		286,167		352,036
Air-cooled heat exchangers	226,529		180,738		175,896
Industrial grating products	139,711		142,355		136,157
Heat transfer products	46,292		42,879		40,533
Consolidated Revenues	$	2,065,738	$	2,896,520	$	3,046,018

(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.