Other Expenses

12 Months Ended

Dec. 31, 2019

Other Income and Expenses [Abstract]

Other (Income) Expenses, Net

The major components of this Consolidated Statements of Operations caption are as follows:



(In thousands)	2019			2018			2017
Net gains
Harsco Environmental Segment	$	(6,303	)	$	(2,650	)	$	(1,354	)
Corporate	—			(1,218		)	—
Total net gains	(6,303		)	(3,868		)	(1,354		)
Employee termination benefit costs
Harsco Environmental Segment	1,254			2,853			4,411
Clean Earth Segment	1,960			—			—
Harsco Rail Segment	2,393			704			1,133
Corporate	1,012			1,206			1,189
Total employee termination benefit costs	6,619			4,763			6,733
Other costs to exit activities
Harsco Environmental Segment	970			352			706
Harsco Rail Segment	3,042			—			—
Corporate	196			(182		)	556
Total other costs to exit activities	4,208			170			1,262
Impaired asset write-downs
Harsco Environmental Segment	632			104			706
Harsco Rail Segment	141			—			—
Corporate	—			—			168
Total impaired asset write-downs	773			104			874
Contingent consideration adjustments
Harsco Environmental Segment	(8,506		)	(2,939		)	—
Harsco Clean Earth Segment	825			—			—
Total contingent consideration adjustments	(7,681		)	(2,939		)	—
Other income	(237		)	(431		)	(188		)
Total other (income) expenses, net	$	(2,621	)	$	(2,201	)	$	7,327

Net Gains

Net gains result from the sales of redundant properties (primarily land, buildings and related equipment) and non-core assets. In 2019, gains related to assets sold principally in Asia Pacific and North America; as well as a cumulative translation adjustment resulting from the substantial liquidation of a subsidiary in Western Europe. In 2018, gains related to assets sold principally in Eastern Europe, Western Europe and Asia Pacific. In 2017, gains related to assets sold principally in Latin America and Western Europe.

Employee Termination Benefit Costs

Costs and the related liabilities associated with involuntary termination benefit costs associated with one-time benefit arrangements provided as part of an exit or disposal activity are recognized by the Company when a formal plan for reorganization is approved at the appropriate level of management and communicated to the affected employees. Additionally, costs associated with ongoing benefit arrangements, or in certain countries where statutory requirements dictate a minimum required benefit, are recognized when they are probable and estimable. The employee termination benefits costs in 2019 principally related to the Harsco Rail Segment's consolidation of facilities in North America; the Harsco Clean Earth Segment

primarily in North America; and the Harsco Environmental Segment primarily in Asia Pacific and Western Europe. The employee termination benefits costs in 2018 related principally to the Harsco Environmental Segment, primarily in Asia Pacific and Western Europe and Corporate in North America. The employee termination benefits costs in 2017 related principally to the Harsco Environmental Segment, primarily in Latin America and Western Europe.

Other Costs to Exit Activities

Costs associated with exit or disposal activities include costs to terminate a contract and other costs associated with exit or disposal activities. Costs to terminate a contract that is not a capital lease are recognized when an entity terminates the contract or when an entity ceases using the right conveyed by the contract. This includes the costs to terminate the contract before the end of its term or the costs that will continue to be incurred under the contract for its remaining term without economic benefit to the entity (e.g., lease run-out costs). Other costs associated with exit or disposal activities (e.g., costs to consolidate or close facilities and relocate equipment or employees) are recognized and measured at their fair value in the period in which the liability is incurred. In 2019, $4.2 million of exit costs were incurred in the Harsco Rail Segment, principally in North America due to the consolidation of facilities. In 2018, $0.2 million of exit costs were incurred across several regions. In 2017, $1.3 million of exit costs were incurred, principally in Western Europe and North America.

Impaired Asset Write-downs

Impaired asset write-downs are measured as the amount by which the carrying amount of assets exceeds their fair value. Fair value is estimated based upon the expected future realizable cash flows including anticipated selling prices. Non-cash impaired asset write-downs are included in, Other, net, on the Consolidated Statements of Cash Flows as adjustments to reconcile net income (loss) to net cash provided by operating activities. In 2019, $0.8 million of impaired asset write-downs were incurred principally in the Harsco Environmental Segment, mostly in Western Europe. In 2017, $0.9 million of impaired asset write-downs were incurred principally in the Harsco Environmental Segment, mostly in the Asia Pacific and North America regions.

Contingent Consideration Adjustments

The Company acquired Altek during 2018 and the purchase price included contingent consideration based on the performance of Altek through 2021. During 2019, the Company's assessment of these performance goals resulted in a $8.5 million reduction to the previously recognized contingent consideration liability in the Harsco Environmental Segment. During 2018, the Company's assessment of these performance goals resulted in a $2.9 million reduction to the previously recognized contingent consideration liability for Altek. In addition, during 2019, the Company acquired Clean Earth and included in the liabilities acquired was a contingent consideration liability resulting from a prior Clean Earth acquisition. During 2019, the Company recorded an increase to this liability of $0.8 million. Each quarter until settlement of the contingency, the Company will assess the likelihood that the acquired businesses will achieve the performance goals and the resulting fair value of the contingent consideration and any future adjustments (increases or decreases) will be included in operating results.