Other Expenses

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

Other Expenses

Other (Income) Expenses, Net

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

(In thousands)	2021		2020		2019
Net gains
Harsco Environmental Segment	$	(8,902)	$	(3,723)	$	(6,303)
Employee termination benefit costs
Harsco Environmental Segment	2,852		9,389		1,254
Clean Earth Segment	433		833		1,960
Corporate	1,481		27		1,012
Total employee termination benefit costs	4,766		10,249		4,226
Other costs to exit activities
Harsco Environmental Segment	640		504		970
Clean Earth Segment	23		—		—
Corporate	—		29		196
Total other costs to exit activities	663		533		1,166
Impaired asset write-downs
Harsco Environmental Segment	942		776		632
Clean Earth Segment	63		—		—
Total impaired asset write-downs	1,005		776		632
Contingent consideration adjustments
Harsco Environmental Segment	—		—		(8,506)
Harsco Clean Earth Segment	—		112		825
Corporate	—		2,274		—
Total contingent consideration adjustments	—		2,386		(7,681)
Other income	(1,254)		(149)		(234)
Total other (income) expenses, net	$	(3,722)	$	10,072	$	(8,194)

Net Gains

Net gains result from the sales of redundant properties (primarily land, buildings and related equipment) and non-core assets. In 2021, gains related to assets sold principally in Western Europe. In 2020, gains related to assets sold principally in Latin America and Western Europe. 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.

Employee Termination Benefit Costs

Costs and the related liabilities associated with involuntary termination benefit costs for one-time benefit arrangements provided as part of an exit or disposal activity are recognized when a formal plan for reorganization is approved at the appropriate level of management and is 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 benefit costs in 2021 principally related to the Harsco Environmental Segment primarily in Western Europe and Asia Pacific; and the Harsco Corporate segment primarily in North America. The employee termination benefits costs in 2020 principally related to the Harsco Environmental Segment primarily in Western Europe, North America, Latin America and Asia Pacific. The employee termination benefits costs in 2019 principally related to the Harsco Clean Earth Segment primarily in North America; and the Harsco Environmental Segment primarily in Asia Pacific 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 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. 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 2021, exit costs were incurred principally in the Harsco Environmental Segment, mostly in North America. In 2020 and 2019, exit costs were incurred in the Harsco Environmental Segment across several regions.

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 all years presented, impaired asset write-downs were incurred primarily in the Harsco Environmental Segment across several regions.

Contingent Consideration Adjustments

The Company acquired Clean Earth in 2019. Included in liabilities acquired was a contingent liability resulting from a prior Clean Earth acquisition. In 2018, the Company acquired Altek, which is included in the Harsco Environmental Segment, and the purchase price included contingent consideration based on the performance of Altek through 2021. Each quarter until settlement of the related contingencies, the Company assesses the likelihood that the acquired businesses will achieve performance goals and the resulting fair value of the contingent consideration and any future adjustments (increases or decreases) are included in operating results. The Company's acquisition of Clean Earth included an agreement to reimburse the sellers for any usage of assumed net operating losses in a post-closing period for up to five years. In 2020, Corporate recorded an adjustment related to the expected reimbursement of these net operating losses.

Other Income

Other income in 2021 relates principally to compensation received for a site previously exited in the Harsco Environmental Segment.