Information by Segment and Geographic Area

12 Months Ended

Dec. 31, 2011

Information by Segment and Geographic Area

Information by Segment and Geographic Area

15. Information by Segment and Geographic Area

        The Company reports information about its 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.

        The Company has four reportable segments. These segments and the types of products and services offered include the following:

Harsco Metals & Minerals Segment

        These businesses provide on-site, outsourced services to steel mills and other metal producers such as aluminum and copper. Services include slag processing; semi-finished inventory management; material handling; scrap management; in-plant transportation; and a variety of other services. Other major products and services include minerals and recycling technologies; environmental solutions for metals and mining customers' waste streams; and granules for asphalt roofing shingles as well as abrasives for industrial surface preparation derived from coal slag. Major customers include steel mills and asphalt roofing manufacturers.

Harsco Infrastructure Segment

        Major services include 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 are provided to industrial and petrochemical plants; the infrastructure construction, repair and maintenance markets; commercial and industrial construction contractors; and public utilities.

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.

Harsco Industrial Segment

        Major products include industrial grating; air-cooled heat exchangers; 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 exploration and processing industry.

Other Information

        The measurement basis of segment profit or loss is operating income. There are no significant inter-segment sales. Corporate assets include principally cash, prepaid taxes, fair value of derivative instruments and U.S. deferred income taxes. Countries with revenues from unaffiliated customers and Net Property, Plant and Equipment of ten percent or more of the consolidated totals are as follows:

Information by Geographic Area(a)

	Revenues from Unaffiliated Customers						Net Property, Plant and Equipment
	Twelve Months Ended December 31						At December 31
(In thousands)	2011		2010		2009		2011		2010		2009
United States	$	1,087,454	$	1,010,290	$	1,010,076	$	276,966	$	291,470	$	326,952
United Kingdom		398,222		420,458		436,039		114,521		141,014		205,681
All Other		1,817,064		1,607,930		1,544,462		882,997		934,489		978,168
Totals including Corporate	$	3,302,740	$	3,038,678	$	2,990,577	$	1,274,484	$	1,366,973	$	1,510,801

(a)

Revenues are attributed to individual countries based on the location of the facility generating the revenue.

        In 2011, 2010 and 2009, sales to one customer, ArcelorMittal, principally in the Harsco Metals & Minerals Segment, were $361.9 million, $359.0 million and $305.6 million, respectively, which represented more than 10% of the Company's consolidated sales for those years. These sales were provided under multiple long-term contracts at several mill sites. In addition, the Harsco Metals & Minerals Segment is dependent largely on the global steel industry, and in 2011, 2010 and 2009 there were two customers, including ArcelorMittal, that each provided in excess of 10% of this Segment's revenues under multiple long-term contracts at several mill sites. The loss of any one of these contracts would not have a material adverse impact upon the Company's financial position or cash flows; however, it could have a material effect on quarterly or annual results of operations. Additionally, consolidation in the global steel industry has increased the Company's exposure to these customers. 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 the fourth quarter of 2011, the Company implemented the 2011/2012 Restructuring Program to further optimize rental assets and sales inventories in the Harsco Infrastructure Segment; reduce the number of administrative locations in the Harsco Infrastructure Segment and Harsco Metals & Minerals Segment; and reduce the global workforce in the Harsco Infrastructure and Harsco Metals & Minerals Segments. The Harsco Infrastructure Segment and Harsco Metals & Minerals Segment recorded pre-tax charges of $87.6 million and $12.8 million respectively, for this Program in 2011. Additional charges of $85 million for the Harsco Infrastructure Segment and $12 million for the Harsco Metals & Minerals Segment are expected to be incurred in 2012 under this Program. Overall cost savings under this program are expected to be over $36 million in 2012 and more than $65 million when fully annualized in 2013.

        In the fourth quarter of 2010, the Harsco Infrastructure Segment implemented a comprehensive restructuring initiative as a countermeasure to global economic and financial conditions that adversely affected the Company's end markets. This Segment recorded net pre-tax charges of $84.4 million related to this restructuring initiative. See Note 18, "Restructuring Programs," to the Consolidated Financial Statements under Part II, Item 8, "Financial Statements and Supplementary Data" for additional disclosure regarding these restructuring programs.

Operating Information by Segment

	Twelve Months Ended December 31
(In thousands)	2011			2010			2009
Revenues
Harsco Metals & Minerals	$	1,588,302		$	1,461,531		$	1,257,098
Harsco Infrastructure		1,108,293			1,031,807			1,159,200
Harsco Rail		300,029			313,262			306,016
Harsco Industrial		306,116			231,898			268,023
Corporate		—			180			240
Total Revenues	$	3,302,740		$	3,038,678		$	2,990,577
Operating Income (Loss)
Harsco Metals & Minerals	$	109,593		$	117,915		$	43,303
Harsco Infrastructure		(125,555	)		(145,346	)		68,437
Harsco Rail		58,746			66,124			56,542
Harsco Industrial		50,656			42,871			55,084
Corporate		(5,791	)		(3,133	)		(4,710	)
Total Operating Income	$	87,649		$	78,431		$	218,656
Total Assets
Harsco Metals & Minerals	$	1,537,538		$	1,541,117		$	1,648,878
Harsco Infrastructure		1,371,143			1,534,379			1,669,401
Harsco Rail		213,410			208,338			208,877
Harsco Industrial		80,784			58,918			58,587
Corporate		136,002			126,468			53,497
Total Assets	$	3,338,877		$	3,469,220		$	3,639,240
Depreciation and Amortization
Harsco Metals & Minerals	$	183,784		$	180,306		$	191,647
Harsco Infrastructure		107,621			114,861			101,465
Harsco Rail		10,133			11,110			11,106
Harsco Industrial		2,805			2,832			2,923
Corporate		6,098			6,130			4,390
Total Depreciation and Amortization	$	310,441		$	315,239		$	311,531
Capital Expenditures
Harsco Metals & Minerals	$	212,009		$	123,153		$	102,762
Harsco Infrastructure		88,456			54,858			41,530
Harsco Rail		4,497			9,498			7,699
Harsco Industrial		4,938			1,722			2,674
Corporate		3,201			3,117			10,655
Total Capital Expenditures	$	313,101		$	192,348		$	165,320

Reconciliation of Segment Operating Income to Consolidated Income From Continuing Operations Before Income Taxes and Equity Income

	Twelve Months Ended December 31
(In thousands)	2011			2010			2009
Segment operating income	$	93,440		$	81,564		$	223,366
General Corporate expense		(5,791	)		(3,133	)		(4,710	)
Operating income from continuing operations		87,649			78,431			218,656
Interest income		2,751			2,668			2,928
Interest expense		(48,735	)		(60,623	)		(62,746	)
Income from continuing operations before income taxes and equity income	$	41,665		$	20,476		$	158,838

Information about Products and Services

	Revenues from Unaffiliated Customers
	Twelve Months Ended December 31
(In thousands)	2011		2010		2009
Product Group
Outsourced, on-site services to steel mills and other metals producers	$	1,367,919	$	1,245,045	$	1,084,826
Engineered scaffolding, concrete forming and shoring, and other access-related services, rentals and sales		1,108,293		1,031,807		1,159,200
Railway track maintenance services and equipment		300,029		313,262		306,016
Resource recovery technologies for the re-use of industrial waste stream by-products		150,983		148,749		104,028
Air-cooled heat exchangers		142,960		112,170		129,365
Industrial grating products		113,388		76,975		92,903
Industrial abrasives and roofing granules		69,399		67,737		68,244
Heat transfer products		49,769		42,753		45,755
General Corporate		—		180		240
Consolidated Revenues	$	3,302,740	$	3,038,678	$	2,990,577