Revised Financial Statements

During the first quarter of 2015, the Company identified an error that would have had the net effect of decreasing after-tax income by $7.5 million, related to an unasserted multiemployer pension plan withdrawal liability that should have been recorded by the Company in the fourth quarter of 2012. The Company became aware of the potential withdrawal liability during the first quarter of 2015 and followed the Company's standard procedure of engaging outside experts to determine the amount of potential liability. Based on these procedures, the Company determined it had triggered a partial withdrawal during the fourth quarter of 2012 due to a decrease in hours worked by the Company's employees who participate in the plan and that such amount should have been accrued in that period. The Company assessed the individual and aggregate impact of this error on the current year and all prior periods and determined that the cumulative effect of this error was material to both the first quarter and expected full-year 2015 results, but did not result in a material misstatement to any previously issued annual or quarterly financial statements. Accordingly, the Company is revising the relevant financial statements for all applicable periods and will revise additional financial statements as they appear in future filings.

In connection with the revision, the Company additionally corrected all previously disclosed immaterial out-of-period adjustments, including tax adjustments. The impact of revising the Company’s Condensed Consolidated Balance Sheets, Condensed Statements of Operations and Condensed Consolidated Statements of Cash Flows for all periods presented are as follows:



	December 31, 2014
(In thousands)	As Previously Reported			Revision			As Revised
ASSETS
Inventories	$	177,265		$	1,657		$	178,922
Total current assets	681,822			1,657			683,479
Other assets	155,551			3,769			159,320
Total assets	2,263,801			5,426			2,269,227

LIABILITIES
Other liabilities	$	25,849		$	11,850		$	37,699
Total liabilities	1,905,467			11,850			1,917,317

HARSCO CORPORATION STOCKHOLDERS’ EQUITY
Accumulated other comprehensive loss	$	(532,491	)	$	235		$	(532,256	)
Retained earnings	1,290,208			(6,659		)	1,283,549
Total Harsco Corporation stockholders’ equity	314,012			(6,424		)	307,588
Total equity	358,334			(6,424		)	351,910
Total liabilities and equity	2,263,801			5,426			2,269,227



	Three Months Ended
	September 30, 2014
(In thousands, except per share amounts)	As Previously Reported			Revision			As Revised
Costs and expenses from continuing operations:
Cost of services sold	$	285,098		$	(2,191	)	$	282,907
Selling, general and administrative expenses	68,289			(515		)	67,774
Total costs and expenses	480,639			(2,706		)	477,933

Operating income from continuing operations	$	45,738		$	2,706		$	48,444
Income from continuing operations before income taxes and equity income	31,946			2,706			34,652
Income tax expense	(11,671		)	(2,254		)	(13,925		)
Equity in income of unconsolidated entities, net	5,295			510			5,805
Income from continuing operations	25,570			962			26,532
Net income	25,167			962			26,129
Net income attributable to Harsco Corporation	23,635			962			24,597

Amounts attributable to Harsco Corporation common stockholders:
Income from continuing operations, net of tax	$	24,038		$	962		$	25,000
Net income attributable to Harsco Corporation common stockholders	23,635			962			24,597

Basic income per common share attributable to Harsco Corporation common stockholders:
Continuing operations	$	0.30		$	0.01		$	0.31
Basic income per share attributable to Harsco Corporation common stockholders	0.29			0.01			0.30

Diluted income per common share attributable to Harsco Corporation common stockholders:
Continuing operations	$	0.30		$	0.01		$	0.31
Diluted income per share attributable to Harsco Corporation common stockholders	0.29			0.01			0.30



	Nine Months Ended
	September 30, 2014
(In thousands, except per share amounts)	As Previously Reported			Revision			As Revised
Revenues from continuing operations:
Service revenues	$	1,054,040		$	551		$	1,054,591
Total revenues	1,573,653			551			1,574,204

Costs and expenses from continuing operations:
Cost of services sold	$	875,898		$	(2,151	)	$	873,747
Selling, general and administrative expenses	213,052			(515		)	212,537
Research and development expenses	5,456			(881		)	4,575
Loss on disposal of the Harsco Infrastructure Segment and transaction costs	5,607			(954		)	4,653
Total costs and expenses	1,489,340			(4,501		)	1,484,839

Operating income from continuing operations	$	84,313		$	5,052		$	89,365
Income from continuing operations before income taxes and equity income	42,830			5,052			47,882
Income tax expense	(20,424		)	(3,655		)	(24,079		)
Income from continuing operations	23,463			1,397			24,860
Net income	23,747			1,397			25,144
Net income attributable to Harsco Corporation	20,799			1,397			22,196

Amounts attributable to Harsco Corporation common stockholders:
Income from continuing operations, net of tax	$	20,515		$	1,397		$	21,912
Net income attributable to Harsco Corporation common stockholders	20,799			1,397			22,196

Basic income per common share attributable to Harsco Corporation common stockholders:
Continuing operations	$	0.25		$	0.02		$	0.27
Basic income per share attributable to Harsco Corporation common stockholders	0.26			0.01			0.27

Diluted earnings per common share attributable to Harsco Corporation common stockholders:
Continuing operations	$	0.25		$	0.02		$	0.27
Diluted income per share attributable to Harsco Corporation common stockholders	0.26			0.01			0.27



	Nine Months Ended
	September 30, 2014
(In thousands)	As Previously Reported			Revision			As Revised
Net cash provided (used) by:
Operating activities	$	184,409		$	881		$	185,290
Investing activities	(149,948		)	(881		)	(150,829		)

As of September 30, 2015, the cumulative impact of this revision was a $6.7 million reduction in retained earnings. The diluted loss per share from continuing operations decrease for the year ended December 31, 2014 was $0.03. The diluted loss per share from continuing operations increase for the years ended December 31, 2013 and 2012 was $0.06 for both periods. The notes to the condensed consolidated financial statements for the three and nine months ended September 30, 2015 have been revised, as applicable.