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 2017, 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 for material logistics, product quality improvement and resource recovery from 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; high-security fencing 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 and safety equipment and provides track maintenance services. The major customers include private and government-owned railroads and urban mass transit systems worldwide.

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, 2017 and 2016, include principally cash, prepaid taxes, fair value of derivative instruments 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)	2017		2016		2015
U.S.	$	697,663	$	614,327	$	758,820
U.K.	146,624		156,552		217,011
All Other	762,775		680,344		747,261
Totals including Corporate	$	1,607,062	$	1,451,223	$	1,723,092


(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)	2017		2016		2015
U.S.	$	120,555	$	125,386	$	142,506
China	95,569		90,288		97,305
Brazil	54,704		62,597		57,381
All Other	208,919		211,984		266,843
Totals including Corporate	$	479,747	$	490,255	$	564,035

No single customer provided in excess of 10% of the Company's consolidated revenues in 2017, 2016 and 2015.

In 2017 and 2016, the Harsco Metals & Minerals Segment had one customer and in 2015 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. The loss of any one of the contracts would not have a material adverse effect upon the Company's financial position or cash flows; however, it could have a significant effect on quarterly or annual results of operations.

In 2017, the Harsco Industrial Segment had one customer, in 2016 no customers and in 2015 two customers that provided in excess of 10% of the Segment's revenues. In 2017 and 2016, the Harsco Rail Segment had one customer and in 2015 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:



	Twelve Months Ended
	December 31
(In thousands)	2017		2016		2015
Revenues
Harsco Metals & Minerals	$	1,011,328	$	965,540	$	1,106,162
Harsco Industrial	299,592		247,542		357,256
Harsco Rail	295,999		238,107		259,674
Corporate	143		34		—
Total Revenues	$	1,607,062	$	1,451,223	$	1,723,092



	Twelve Months Ended
	December 31
(In thousands)	2017			2016			2015
Operating Income (Loss)
Harsco Metals & Minerals	$	105,257		$	81,634		$	26,289
Harsco Industrial	35,174			23,182			57,020
Harsco Rail	32,091			(17,527		)	50,896
Corporate	(29,723		)	(23,820		)	(45,669		)
Total Operating Income	$	142,799		$	63,469		$	88,536
Total Assets
Harsco Metals & Minerals	$	1,184,280		$	1,181,602		$	1,286,336
Harsco Industrial	113,410			107,987			119,830
Harsco Rail	237,135			204,477			219,753
Corporate	43,860			87,272			425,968
Total Assets	$	1,578,685		$	1,581,338		$	2,051,887
Depreciation and Amortization
Harsco Metals & Minerals	$	112,329		$	120,611		$	136,579
Harsco Industrial	7,360			7,223			6,266
Harsco Rail	4,221			5,383			6,093
Corporate	6,027			8,269			7,537
Total Depreciation and Amortization	$	129,937		$	141,486		$	156,475
Capital Expenditures
Harsco Metals & Minerals	$	87,526		$	62,322		$	99,563
Harsco Industrial	6,895			5,118			17,382
Harsco Rail	2,403			1,696			1,957
Corporate	1,490			204			4,650
Total Capital Expenditures	$	98,314		$	69,340		$	123,552

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



	Twelve Months Ended
	December 31
(In thousands)	2017			2016			2015
Segment operating income	$	172,522		$	87,289		$	134,205
General Corporate expense	(29,723		)	(23,820		)	(45,669		)
Operating income from continuing operations	142,799			63,469			88,536
Interest income	2,469			2,475			1,574
Interest expense	(47,552		)	(51,584		)	(46,804		)
Loss on early extinguishment of debt	(2,265		)	(35,337		)	—
Change in fair value to the unit adjustment liability and loss on dilution and sale of equity method investment	—			(58,494		)	(8,491		)
Income (loss) from continuing operations before income taxes and equity income	$	95,451		$	(79,471	)	$	34,815

Information about Products and Services:



	Revenues from Unaffiliated Customers
	Twelve Months Ended
	December 31
(In thousands)	2017		2016		2015
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	$	1,011,328	$	965,540	$	1,106,162
Railway track maintenance and safety equipment and track maintenance services	295,999		238,107		259,674
Air-cooled heat exchangers	144,955		93,616		186,243
Industrial grating and fencing products	116,598		115,914		129,869
Heat transfer products	38,039		38,012		41,144
General Corporate	143		34		—
Consolidated Revenues	$	1,607,062	$	1,451,223	$	1,723,092