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 2015, 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, the Company's reportable segments also included 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 2015 and 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, 2015 and 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)	2015		2014		2013
U.S.	$	758,820	$	880,884	$	1,021,770
U.K.	217,011		257,885		353,915
All Other	747,261		927,519		1,520,285
Totals including Corporate	$	1,723,092	$	2,066,288	$	2,895,970


(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)	2015		2014		2013
U.S.	$	142,506	$	151,397	$	146,939
China	97,305		102,842		86,822
Brazil	57,381		69,515		63,161
All Other	266,843		339,490		413,543
Totals including Corporate	$	564,035	$	663,244	$	710,465

No single customer provided in excess of 10% of the Company's consolidated revenues in 2015, 2014 and 2013.

In 2015, 2014 and 2013, 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. 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 2015, the Harsco Industrial Segment had two customers and in 2014 and 2013 one customer that provided in excess of 10% of the Segment's revenues. In 2015 and 2013, the Harsco Rail Segment had two customers and in 2014 one customer 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 year ended December 31, 2013 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)	2015			2014			2013
Revenues
Harsco Metals & Minerals	$	1,106,162		$	1,378,142		$	1,358,454
Harsco Infrastructure	—			—			885,377
Harsco Industrial	357,256			412,532			365,972
Harsco Rail	259,674			275,614			286,167
Total Revenues	$	1,723,092		$	2,066,288		$	2,895,970
Operating Income (Loss)
Harsco Metals & Minerals	$	26,289		$	13,771		$	91,781
Harsco Infrastructure	—			—			(257,291		)
Harsco Industrial	57,020			64,114			59,110
Harsco Rail	50,896			37,137			26,695
Corporate	(45,669		)	(45,735		)	(62,938		)
Total Operating Income (Loss)	$	88,536		$	69,287		$	(142,643	)
Total Assets
Harsco Metals & Minerals	$	1,294,759		$	1,476,660		$	1,599,329
Harsco Infrastructure (a)	—			—			456,316
Harsco Industrial	119,830			127,591			83,946
Harsco Rail	219,753			169,035			159,752
Corporate	436,985			495,941			147,174
Total Assets	$	2,071,327		$	2,269,227		$	2,446,517
Depreciation and Amortization
Harsco Metals & Minerals	$	136,579		$	159,844		$	158,837
Harsco Infrastructure	—			—			58,449
Harsco Industrial	6,266			4,928			3,329
Harsco Rail	6,093			5,591			10,362
Corporate	7,537			5,963			6,064
Total Depreciation and Amortization	$	156,475		$	176,326		$	237,041
Capital Expenditures
Harsco Metals & Minerals	$	99,563		$	187,665		$	172,583
Harsco Infrastructure	—			—			62,889
Harsco Industrial	17,382			9,298			3,936
Harsco Rail	1,957			3,120			3,502
Corporate	4,650			8,776			2,641
Total Capital Expenditures	$	123,552		$	208,859		$	245,551

(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 (Loss) From Continuing Operations Before Income Taxes and Equity Income (Loss):



	Twelve Months Ended
	December 31
(In thousands)	2015			2014			2013
Segment operating income (loss)	$	134,205		$	115,022		$	(79,705	)
General Corporate expense	(45,669		)	(45,735		)	(62,938		)
Operating income (loss) from continuing operations	88,536			69,287			(142,643		)
Interest income	1,574			1,702			2,087
Interest expense	(46,804		)	(47,111		)	(49,654		)
Change in fair value to the unit adjustment liability	(8,491		)	(9,740		)	(966		)
Income (loss) from continuing operations before income taxes and equity income (loss)	$	34,815		$	14,138		$	(191,176	)

Information about Products and Services:



	Revenues from Unaffiliated Customers
	Twelve Months Ended
	December 31
(In thousands)	2015		2014		2013
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	$	1,106,162	$	1,378,142	$	1,358,454
Engineered scaffolding, concrete forming and shoring, and other access-related services, rentals and sales (a)	—		—		885,377
Railway track maintenance services and equipment	259,674		275,614		286,167
Air-cooled heat exchangers	186,243		226,529		180,738
Industrial grating products	129,869		139,711		142,355
Heat transfer products	41,144		46,292		42,879
Consolidated Revenues	$	1,723,092	$	2,066,288	$	2,895,970

(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.