Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'HARSCO CORP | ' |
Entity Central Index Key | '0000045876 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 80,741,820 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ||
Cash and cash equivalents | $83,362 | $93,605 | ||
Trade accounts receivable, net | 399,701 | 353,181 | ||
Other receivables | 52,078 | [1] | 46,470 | [1] |
Inventories | 166,778 | 155,689 | ||
Assets held-for-sale | 0 | 113,968 | ||
Other current assets | 74,792 | 75,842 | ||
Total current assets | 776,711 | 838,755 | ||
Investments | 301,338 | 298,856 | ||
Property, plant and equipment, net | 723,019 | 711,346 | ||
Goodwill | 438,847 | 431,265 | ||
Intangible assets, net | 67,839 | 53,261 | ||
Other assets | 111,599 | 108,265 | ||
Total assets | 2,419,353 | 2,441,748 | ||
Current liabilities: | ' | ' | ||
Short-term borrowings | 6,230 | 7,489 | ||
Current maturities of long-term debt | 21,545 | 20,257 | ||
Accounts payable | 192,383 | 181,410 | ||
Accrued compensation | 49,313 | 53,113 | ||
Income taxes payable | 5,316 | 7,199 | ||
Dividends payable | 16,546 | 16,536 | ||
Insurance liabilities | 11,510 | 10,523 | ||
Advances on contracts | 66,350 | 24,053 | ||
Liabilities of assets held-for-sale | 0 | 109,176 | ||
Due to unconsolidated affiliate | 15,330 | 24,954 | ||
Unit adjustment liability | 22,320 | 22,320 | ||
Other current liabilities | 145,294 | 129,739 | ||
Total current liabilities | 552,137 | 606,769 | ||
Long-term debt | 834,345 | 783,158 | ||
Deferred income taxes | 8,080 | 8,217 | ||
Insurance liabilities | 42,667 | 41,879 | ||
Retirement plan liabilities | 222,005 | 241,049 | ||
Due to unconsolidated affiliate | 27,679 | 27,292 | ||
Unit adjustment liability | 80,988 | 84,023 | ||
Other liabilities | 48,174 | 42,526 | ||
Total liabilities | 1,816,075 | 1,834,913 | ||
COMMITMENTS AND CONTINGENCIES | ' | ' | ||
HARSCO CORPORATION STOCKHOLDERS' EQUITY | ' | ' | ||
Preferred stock | 0 | 0 | ||
Common stock | 140,327 | 140,248 | ||
Additional paid-in capital | 161,048 | 159,025 | ||
Accumulated other comprehensive loss | -371,872 | -370,615 | ||
Retained earnings | 1,375,888 | 1,381,321 | ||
Treasury stock | -746,830 | -746,237 | ||
Total Harsco Corporation stockholders' equity | 558,561 | 563,742 | ||
Noncontrolling interests | 44,717 | 43,093 | ||
Total equity | 603,278 | 606,835 | ||
Total liabilities and equity | $2,419,353 | $2,441,748 | ||
[1] | Other receivables include insurance claim receivables, employee receivables, tax claim receivables and other miscellaneous receivables not included in Trade accounts receivable, net. |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues from continuing operations: | ' | ' |
Service revenues | $351,010 | $551,155 |
Product revenues | 161,689 | 164,240 |
Total revenues | 512,699 | 715,395 |
Costs and expenses from continuing operations: | ' | ' |
Cost of services sold | 293,999 | 443,396 |
Cost of products sold | 115,466 | 120,862 |
Selling, general and administrative expenses | 66,794 | 124,698 |
Research and development expenses | 2,619 | 2,196 |
Loss on disposal of the Harsco Infrastructure Segment and transaction costs | 2,138 | 0 |
Other income | -656 | -1,542 |
Total costs and expenses | 480,360 | 689,610 |
Operating income from continuing operations | 32,339 | 25,785 |
Interest income | 297 | 406 |
Interest expense | -11,421 | -11,743 |
Change in fair value to unit adjustment liability | -2,546 | 0 |
Income from continuing operations before income taxes and equity loss | 18,669 | 14,448 |
Income tax expense | -4,495 | -4,965 |
Equity in loss of unconsolidated entities, net | -1,230 | -14 |
Income from continuing operations | 12,944 | 9,469 |
Discontinued operations: | ' | ' |
Loss on disposal of discontinued business | -640 | -642 |
Income tax benefit related to discontinued business | 237 | 245 |
Loss from discontinued operations | -403 | -397 |
Net income | 12,541 | 9,072 |
Less: Net income attributable to noncontrolling interests | -1,402 | -1,827 |
Net income attributable to Harsco Corporation | 11,139 | 7,245 |
Amounts attributable to Harsco Corporation common stockholders: | ' | ' |
Income from continuing operations, net of tax | 11,542 | 7,642 |
Loss from discontinued operations | -403 | -397 |
Net income attributable to Harsco Corporation | $11,139 | $7,245 |
Weighted-average shares of common stock outstanding | 80,816 | 80,706 |
Basic earnings per common share attributable to Harsco Corporation common stockholders: | ' | ' |
Continuing operations | $0.14 | $0.09 |
Discontinued operations | $0 | $0 |
Basic earnings per share attributable to Harsco Corporation common stockholders | $0.14 | $0.09 |
Diluted weighted-average shares of common stock outstanding | 81,022 | 80,930 |
Diluted earnings per common share attributable to Harsco Corporation common stockholders: | ' | ' |
Continuing operations | $0.14 | $0.09 |
Discontinued operations | $0 | $0 |
Diluted earnings per share attributable to Harsco Corporation common stockholders | $0.14 | $0.09 |
Cash dividends declared per common share | $0.21 | $0.21 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $12,541 | $9,072 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments, net of deferred income taxes of $(101) and 9,055 | -1,270 | -12,016 |
Net gain (loss) on cash flow hedging instruments, net of deferred income taxes of $386 and $(437) in 2014 and 2013, respectively | -3,963 | 2,061 |
Pension liability adjustments, net of deferred income taxes of $(406) and $(4,091) in 2014 and 2013, respectively | 3,681 | 28,003 |
Unrealized gain (loss) on marketable securities, net of deferred income taxes of $3 and $(5) in 2014 and 2013, respectively | -5 | 8 |
Total other comprehensive income (loss) | -1,557 | 18,056 |
Total comprehensive income | 10,984 | 27,128 |
Less: Comprehensive income attributable to noncontrolling interests | 1,102 | 1,649 |
Comprehensive income attributable to Harsco Corporation | $9,882 | $25,479 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Foreign currency translation adjustments, deferred income taxes | ($101) | $9,055 |
Net gain (loss) on cash flow hedging instruments, deferred income taxes | 386 | -437 |
Pension liability adjustments, deferred income taxes | -406 | -4,091 |
Unrealized gain on marketable securities, deferred income taxes | $3 | ($5) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $12,541 | $9,072 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation | 41,834 | 61,282 |
Amortization | 3,001 | 4,444 |
Change in fair value to unit adjustment liability | 2,546 | 0 |
Deferred income tax expense (benefit) | 2,349 | -1,407 |
Equity in loss of unconsolidated entities, net | 1,230 | 14 |
Loss on disposal of Harsco Infrastructure Segment | 699 | 0 |
Other, net | -750 | -180 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -49,671 | -30,108 |
Inventories | -4,454 | -10,757 |
Accounts payable | -6,246 | 13,252 |
Accrued interest payable | 8,207 | 5,874 |
Accrued compensation | -3,586 | -17,725 |
Advances on contracts | 34,006 | -10,311 |
Harsco Infrastructure Segment 2010 Restructuring Program accrual | 0 | -84 |
Harsco 2011/2012 Restructuring Program accrual | -528 | -8,054 |
Other assets and liabilities | -13,650 | -11,897 |
Net cash provided by operating activities | 27,528 | 3,415 |
Cash flows from investing activities: | ' | ' |
Purchases of property, plant and equipment | -39,883 | -53,733 |
Proceeds from the Infrastructure transaction | 3,296 | 0 |
Proceeds from sales of assets | 3,806 | 10,595 |
Purchases of business, net of cash acquired | -26,046 | 0 |
Payment of unit adjustment liability | -5,580 | 0 |
Other investing activities, net | -1,178 | 2,903 |
Net cash used by investing activities | -65,585 | -40,235 |
Cash flows from financing activities: | ' | ' |
Short-term borrowings, net | -1,721 | 4,093 |
Current maturities and long-term debt: | ' | ' |
Additions | 65,000 | 63,719 |
Reductions | -18,424 | -15,064 |
Cash dividends paid on common stock | -16,562 | -16,536 |
Dividends paid to noncontrolling interests | 0 | -755 |
Contributions from noncontrolling interests | 0 | 857 |
Purchase of noncontrolling interests | 0 | -166 |
Common stock issued-options | 0 | 214 |
Net cash provided by financing activities | 28,293 | 36,362 |
Effect of exchange rate changes on cash | -479 | -1,851 |
Net decrease in cash and cash equivalents | -10,243 | -2,309 |
Cash and cash equivalents at beginning of period | 93,605 | 95,250 |
Cash and cash equivalents at end of period | $83,362 | $92,941 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common Stock Issued | Common Stock Treasury | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
In Thousands, unless otherwise specified | |||||||
Balances at Dec. 31, 2012 | $861,624 | $140,080 | ($745,205) | $152,645 | $1,675,490 | ($411,168) | $49,782 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 9,072 | ' | ' | ' | 7,245 | ' | 1,827 |
Cash dividends declared: | ' | ' | ' | ' | ' | ' | ' |
Common @ $0.205 per share | -16,551 | ' | ' | ' | -16,551 | ' | ' |
Noncontrolling interests | -755 | ' | ' | ' | ' | ' | -755 |
Other comprehensive income, net of deferred income taxes of $(118) and $4,522 in 2014 and 2013, respectively | 18,056 | ' | ' | ' | ' | 18,234 | -178 |
Contributions from noncontrolling interests | 857 | ' | ' | ' | ' | ' | 857 |
Purchase of subsidiary shares from noncontrolling interest | -185 | ' | ' | -292 | ' | ' | 107 |
Stock options exercised, 12,000 shares in 2013 | 238 | 15 | ' | 223 | ' | ' | ' |
Vesting of restricted stock units and other, net 39,941 shares and 60,176 shares in 2014 and 2013, respectively | 1,342 | 116 | -833 | 2,059 | ' | ' | ' |
Amortization of unearned portion of stock-based compensation, net of forfeitures | 865 | ' | ' | 865 | ' | ' | ' |
Balances at Mar. 31, 2013 | 874,563 | 140,211 | -746,038 | 155,500 | 1,666,184 | -392,934 | 51,640 |
Balances at Dec. 31, 2013 | 606,835 | 140,248 | -746,237 | 159,025 | 1,381,321 | -370,615 | 43,093 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 12,541 | ' | ' | ' | 11,139 | ' | 1,402 |
Cash dividends declared: | ' | ' | ' | ' | ' | ' | ' |
Common @ $0.205 per share | -16,572 | ' | ' | ' | -16,572 | ' | ' |
Noncontrolling interests | -133 | ' | ' | ' | ' | ' | -133 |
Other comprehensive income, net of deferred income taxes of $(118) and $4,522 in 2014 and 2013, respectively | -1,557 | ' | ' | ' | ' | -1,257 | -300 |
Contributions from noncontrolling interests | 1,560 | ' | ' | ' | ' | ' | 1,560 |
Noncontrolling Interest, Decrease from Deconsolidation | -905 | ' | ' | ' | ' | ' | -905 |
Vesting of restricted stock units and other, net 39,941 shares and 60,176 shares in 2014 and 2013, respectively | 1,057 | 79 | -593 | 1,571 | ' | ' | ' |
Amortization of unearned portion of stock-based compensation, net of forfeitures | 452 | ' | ' | 452 | ' | ' | ' |
Balances at Mar. 31, 2014 | $603,278 | $140,327 | ($746,830) | $161,048 | $1,375,888 | ($371,872) | $44,717 |
CONDENSED_CONSOLIDATED_STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash dividends declared per common share | $0.21 | $0.21 |
Other Comprehensive Income (Loss), Tax | ($118) | $4,522 |
Stock options exercised (in shares) | 0 | 12,000 |
Vesting of restricted stock units and other (in shares) | 39,941 | 60,176 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Harsco Corporation (the “Company”) has prepared these unaudited condensed consolidated financial statements based on Securities and Exchange Commission rules that permit reduced disclosure for interim periods. In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair presentation are reflected in the unaudited condensed consolidated financial statements. The December 31, 2013 Condensed Consolidated Balance Sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2013 audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for an annual report. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
Operating results and cash flows for the three months ended March 31, 2014 are not indicative of the results that may be expected for the year ending December 31, 2014. |
Recently_Adopted_and_Recently_
Recently Adopted and Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recently Adopted and Recently Issued Accounting Standards | ' |
Recently Adopted and Recently Issued Accounting Standards | |
The following accounting standards have been adopted in 2014: | |
On January 1, 2014, the Company adopted Financial Accounting Standards Board ("FASB") issued changes related to a parent's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The changes resolve diversity in practice related to these matters. The adoption of these changes did not have a material impact on the Company's consolidated financial statements. | |
On January 1, 2014, the Company adopted FASB issued changes related to financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists that could be used to offset the liability for an uncertain tax position. The changes resolve diversity in practice related to these matters. The adoption of these changes did not have a material impact on the Company's consolidated financial statements. | |
Additional accounting standards which have been issued and become effective for the Company at various future dates are not expected to have a material impact on the Company's consolidated financial statements. |
Acquisitions_and_Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Mar. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | ' |
Acquisitions and Dispositions | |
Acquisitions | |
In January 2014, the Company acquired Hammco Corporation ("Hammco"), a U.S. manufacturer of high specification air-cooled heat exchangers for the natural gas and petrochemical processing markets. Hammco has been included in the results of the Harsco Industrial Segment. Inclusion of pro forma financial information for this transaction is not necessary due to the immaterial size of the acquisition. | |
Dispositions | |
In November 2013, the Company consummated the previously announced transaction to sell the Company's Harsco Infrastructure Segment into a strategic venture with Clayton, Dubilier & Rice ("CD&R") as part of a transaction that combines the Harsco Infrastructure Segment with Brand Energy & Infrastructure Services, Inc., which CD&R simultaneously acquired (the "Infrastructure transaction"). The Company has contributed substantially all of the Company's equity interest in, and the net assets of, the Harsco Infrastructure Segment to the strategic venture in exchange for $300 million, subject to working capital and other adjustments, and an approximate 29% equity interest in the resulting entity (the "Infrastructure strategic venture" or "Brand"). The Company's equity interest in the Infrastructure strategic venture is accounted for under the equity method of accounting as prescribed by U.S. GAAP. See Note 5, Equity Method Investments, for additional information on equity method investments. | |
As a result of the Infrastructure transaction, the Company recorded an estimated loss on disposal of the Harsco Infrastructure Segment of $271.3 million during 2013 and recorded an additional loss of $0.7 million during the first quarter of 2014. Further adjustments to the loss on disposal of the Harsco Infrastructure Segment may be necessary and the final loss may differ, possibly materially, as a result of any adjustments made to the valuation of certain items set forth on the closing statement prepared by Brand in connection with the Infrastructure transaction, which has been reviewed by the Company and requires final agreement between Brand and the Company. See Note 1, Summary of Significant Accounting Policies, and Note 3, Acquisitions and Dispositions, to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 for additional information on the Company's policy on impairment of long-lived assets (other than goodwill) and the loss on disposal of the Harsco Infrastructure Segment. | |
Additionally, the Company incurred $1.4 million of transaction costs during the three months ended March 31, 2014 in conjunction with the Infrastructure transaction. |
Accounts_Receivable_and_Invent
Accounts Receivable and Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounts Receivable And Inventories | ' | ||||||||
Accounts Receivable and Inventories | ' | ||||||||
Accounts Receivable and Inventories | |||||||||
Accounts receivable consist of the following: | |||||||||
(In thousands) | March 31 | December 31 | |||||||
2014 | 2013 | ||||||||
Trade accounts receivable | $ | 406,267 | $ | 359,819 | |||||
Less: Allowance for doubtful accounts | (6,566 | ) | (6,638 | ) | |||||
Trade accounts receivable, net | $ | 399,701 | $ | 353,181 | |||||
Other receivables (a) | $ | 52,078 | $ | 46,470 | |||||
(a) Other receivables include insurance claim receivables, employee receivables, tax claim receivables and other miscellaneous receivables not included in Trade accounts receivable, net. | |||||||||
The provision for doubtful accounts related to trade accounts receivable was as follows: | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Provision for doubtful accounts related to trade accounts receivable | $ | (19 | ) | $ | 2,217 | ||||
Inventories consist of the following: | |||||||||
(In thousands) | March 31 | December 31 | |||||||
2014 | 2013 | ||||||||
Finished goods | $ | 22,234 | $ | 23,112 | |||||
Work-in-process | 31,044 | 25,623 | |||||||
Raw materials and purchased parts | 82,627 | 72,118 | |||||||
Stores and supplies | 30,873 | 34,836 | |||||||
Inventories | $ | 166,778 | $ | 155,689 | |||||
Equity_Method_Investments_Note
Equity Method Investments (Notes) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Schedule of Equity Method Investments [Line Items] | ' | ||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' | ||||||||
Equity Method Investments | |||||||||
As a result of the Infrastructure transaction, the Company now possesses an approximate 29% equity interest in Brand at March 31, 2014. See Note 3, Acquisitions and Dispositions, for additional information related to the Infrastructure transaction. | |||||||||
Brand is a leading provider of specialized services to the global energy, industrial and infrastructure markets that combines a global footprint, broad service offerings and rigorous operating processes to support customer required facility maintenance and turnaround needs and capital driven upgrade and expansion plans. Brand's range of services includes work access, corrosion management, atmospheric and immersion coatings, insulation services, fireproofing and refractory, mechanical services, forming and shoring and other complementary specialty services. Brand delivers services through a global network of strategically located branches in six continents with a particular focus on major hydrocarbon and power generation markets globally. In addition, Brand has co-located branches at energy-related customer facilities providing a consistent presence for required maintenance work. | |||||||||
The book value of the Company's investment in Brand at March 31, 2014 was $298.3 million. The Company records the Company's proportionate share of Brand's net income or loss one quarter in arrears. Brand's results of operations for the period ended December 31, 2013 are summarized as follows: | |||||||||
(In thousands) | December 31 | ||||||||
2013 | |||||||||
Summarized Balance Sheet Information of Brand: | |||||||||
Current assets | $ | 728,131 | |||||||
Property and equipment , net | 886,305 | ||||||||
Other noncurrent assets | 1,743,965 | ||||||||
Total assets | $ | 3,358,401 | |||||||
Short-term borrowings, including current portion of long-term debt | $ | 13,829 | |||||||
Other current liabilities | 386,908 | ||||||||
Long-term debt | 1,756,757 | ||||||||
Other noncurrent liabilities | 415,840 | ||||||||
Total liabilities | 2,573,334 | ||||||||
Equity | 785,067 | ||||||||
Total liabilities and equity | $ | 3,358,401 | |||||||
(In thousands) | Period From November 27, 2013 Through December 31, 2013 | ||||||||
Summarized Statement of Operations Information of Brand: | |||||||||
Net revenues | $ | 236,094 | |||||||
Gross profit | 48,832 | ||||||||
Net loss | (4,245 | ) | |||||||
Harsco's equity in income of Brand (a) | (1,231 | ) | |||||||
(a) The Company's equity method investment in Brand began on November 26, 2013 and accordingly there is only approximately one month of related equity loss. The results of the Harsco Infrastructure Segment from January 1, 2013 through the date of closing are reported in the Company's results of operations for 2013. | |||||||||
As part of the Infrastructure transaction, the Company is required to make a quarterly payment to the Company's partner in the Infrastructure strategic venture, either (at the Company's election) (i) in cash, with total payments to equal approximately $22 million per year on a pre-tax basis (approximately $15 million per year after-tax), or (ii) in kind through the transfer of approximately 2.5% of the Company's ownership interest in the Infrastructure strategic venture on an annual basis (the "unit adjustment liability"). The resulting liability is reflected in the caption, Unit adjustment liability, on the Company's Condensed Consolidated Balance Sheets. The Company will recognize the change in fair value to unit adjustment liability each period until the Company is no longer required to make these payments or chooses not to make these payments. The change in fair value to unit adjustment liability is a non-cash expense. For the three months ended March 31, 2014, the Company recognized $2.5 million of change in fair value to unit adjustment liability. | |||||||||
The Company's obligation to make a quarterly payment will cease upon the earlier of (i) Brand achieving $479.0 million in last twelve months' earnings before interest, taxes, depreciation and amortization for three quarters, which need not be consecutive, or (ii) eight years after the closing of the Infrastructure transaction. In addition, upon the initial public offering of Brand, the Company's quarterly payment obligation will decrease by the portion of CD&R's ownership interest sold or eliminated completely once CD&R's ownership interest in Brand falls below 20%. In the event of a liquidation of Brand, CD&R is entitled to a liquidation preference of approximately $336 million, plus any quarterly payments that had been paid in kind. | |||||||||
The Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013 include balances related to the unit adjustment liability of $103.3 million and $106.3 million, respectively in the current and non-current captions, Unit adjustment liability. | |||||||||
The Company intends to make these quarterly payments in cash and will continue to evaluate the implications of making payments in cash or in kind based upon performance of the Infrastructure strategic venture. In the future, should the Company decide not to make the cash payment, the value of both the equity method investment in Brand and the related unit adjustment liability may be impacted, and the change may be reflected in earnings in that period. | |||||||||
Balances related to transactions between the Company and Brand are as follows: | |||||||||
(In thousands) | March 31 | December 31 | |||||||
2014 | 2013 | ||||||||
Balances due from Brand | $ | 22,925 | $ | 85,908 | |||||
Balances due to Brand | 43,009 | 149,325 | |||||||
These balances between the Company and Brand relate primarily to the finalization of the Infrastructure transaction, including transition services and the funding of certain transferred defined benefit pension plan obligations through 2018. There is not expected to be any significant level of revenue or expense between the Company and Brand on an ongoing basis once all aspects of the Infrastructure transaction have been finalized. | |||||||||
No instances of impairment were noted on the Company's equity method investments for the three months ended March 31, 2014. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
Property, Plant and Equipment | |||||||||
Property, plant and equipment consists of the following: | |||||||||
(In thousands) | March 31 | December 31 | |||||||
2014 | 2013 | ||||||||
Land | $ | 16,431 | $ | 16,652 | |||||
Land improvements | 13,758 | 13,615 | |||||||
Buildings and improvements | 213,409 | 192,346 | |||||||
Machinery and equipment | 1,996,779 | 1,969,493 | |||||||
Uncompleted construction | 76,587 | 86,508 | |||||||
Gross property, plant and equipment | 2,316,964 | 2,278,614 | |||||||
Less: Accumulated depreciation | (1,593,945 | ) | (1,567,268 | ) | |||||
Property, plant and equipment, net | $ | 723,019 | $ | 711,346 | |||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||
The following table reflects the changes in carrying amounts of goodwill by segment for the three months ended March 31, 2014: | |||||||||||||||||||||
(In thousands) | Harsco Metals & Minerals Segment | Harsco Industrial Segment | Harsco Rail | Consolidated | |||||||||||||||||
Segment | Totals | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 421,955 | $ | — | $ | 9,310 | $ | 431,265 | |||||||||||||
Changes to goodwill (a) | — | 7,949 | — | 7,949 | |||||||||||||||||
Foreign currency translation | (367 | ) | — | — | (367 | ) | |||||||||||||||
Balance at March 31, 2014 | $ | 421,588 | $ | 7,949 | $ | 9,310 | $ | 438,847 | |||||||||||||
(a) Changes to goodwill relate to the acquisition of Hammco. See Note 3, Acquisitions and Dispositions. | |||||||||||||||||||||
The Company tests for goodwill impairment annually or more frequently if indicators of impairment exist or if a decision is made to dispose of a business. The Company performs its annual goodwill impairment test as of October 1 and monitors for triggering events on an ongoing basis. The Company determined that as of March 31, 2014, no interim goodwill impairment testing was necessary. There can be no assurance that the Company’s annual goodwill impairment testing will not result in a charge to earnings. Any impairment could result in the write-down of the carrying value of goodwill to its implied fair value. | |||||||||||||||||||||
Intangible assets consist of the following: | |||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||
(In thousands) | Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||
Customer related | $ | 163,901 | $ | 112,318 | $ | 150,307 | $ | 110,889 | |||||||||||||
Non-compete agreements | 1,126 | 1,032 | 1,126 | 1,024 | |||||||||||||||||
Patents | 6,237 | 5,344 | 6,211 | 5,273 | |||||||||||||||||
Technology related | 26,957 | 19,469 | 27,185 | 18,931 | |||||||||||||||||
Trade names | 7,667 | 3,159 | 4,113 | 2,969 | |||||||||||||||||
Other | 7,629 | 4,356 | 7,753 | 4,348 | |||||||||||||||||
Total | $ | 213,517 | $ | 145,678 | $ | 196,695 | $ | 143,434 | |||||||||||||
Amortization expense for intangible assets was as follows: | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
31-Mar | |||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||
Amortization expense for intangible assets | $ | 2,553 | $ | 3,948 | |||||||||||||||||
The estimated amortization expense for the next five fiscal years based on current intangible assets is as follows: | |||||||||||||||||||||
(In thousands) | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
Estimated amortization expense (a) | $ | 10,000 | $ | 8,500 | $ | 8,000 | $ | 5,000 | $ | 4,750 | |||||||||||
(a) These estimated amortization expense amounts do not reflect the potential effect of future foreign currency exchange fluctuations. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||
Employee Benefit Plans | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31 | |||||||||||||||||
Defined Benefit Net Periodic Pension Cost | U. S. Plans | International Plans | |||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Defined benefit plans: | |||||||||||||||||
Service cost | $ | 558 | $ | 641 | $ | 407 | $ | 909 | |||||||||
Interest cost | 3,217 | 2,941 | 10,912 | 10,781 | |||||||||||||
Expected return on plan assets | (4,196 | ) | (3,909 | ) | (12,588 | ) | (11,819 | ) | |||||||||
Recognized prior service costs | 22 | 35 | 46 | 92 | |||||||||||||
Recognized loss | 838 | 1,263 | 3,553 | 4,150 | |||||||||||||
Defined benefit plans net periodic pension cost | $ | 439 | $ | 971 | $ | 2,330 | $ | 4,113 | |||||||||
Three Months Ended | |||||||||||||||||
Company Contributions | March 31 | ||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||
Defined benefit pension plans: | |||||||||||||||||
United States | $ | 566 | $ | 483 | |||||||||||||
International | 17,421 | 17,559 | |||||||||||||||
Multiemployer pension plans | 701 | 2,816 | |||||||||||||||
Defined contribution pension plans | 4,069 | 4,828 | |||||||||||||||
The Company currently anticipates contributing an additional $9.2 million and $13.3 million for the U.S. and international defined benefit pension plans, respectively, during the remainder of 2014. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The effective income tax rate related to continuing operations for the three months ended March 31, 2014 was 24.1% compared with 34.4% for the three months ended March 31, 2013. The effective income tax rate related to continuing operations and income tax expense from continuing operations decreased primarily due to changes in the jurisdictional mix of income. In particular, losses generated in certain jurisdictions where no tax benefit can be recognized declined, partially offset by the elimination of temporary 2013 tax benefits not legislatively renewed in 2014. | |
An income tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained upon examination, based on technical merits, including resolutions of any related appeals or litigation processes. The unrecognized income tax benefit at March 31, 2014 was $20.1 million, including interest and penalties. Within the next twelve months, it is reasonably possible that up to $1.3 million of unrecognized income tax benefits will be recognized upon settlement of tax examinations and the expiration of various statutes of limitations. | |
The Company was contacted by the U.S. Internal Revenue Service to audit the Company's 2010 income tax return. The U.S. Internal Revenue Service commenced its audit during the second quarter of 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Environmental | |
The Company is involved in a number of environmental remediation investigations and cleanups and, along with other companies, has been identified as a “potentially responsible party” for certain waste disposal sites. While each of these matters is subject to various uncertainties, it is probable that the Company will agree to make payments toward funding certain of these activities and it is possible that some of these matters will be decided unfavorably to the Company. The Company has evaluated its potential liability, and its financial exposure is dependent upon such factors as the continuing evolution of environmental laws and regulatory requirements, the availability and application of technology, the allocation of cost among potentially responsible parties, the years of remedial activity required and the remediation methods selected. The Condensed Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013 include accruals in Other current liabilities of $1.3 million and $1.2 million, respectively, for environmental matters. The amounts charged against pre-tax income related to environmental matters totaled $0.7 million and $0.3 million for the three months ended March 31, 2014 and 2013, respectively. | |
The Company evaluates its liability for future environmental remediation costs on a quarterly basis. Although actual costs to be incurred at identified sites in future periods may vary from the estimates (given inherent uncertainties in evaluating environmental exposures), the Company does not expect that any costs that are reasonably possible to be incurred by the Company in connection with environmental matters in excess of the amounts accrued would have a material adverse effect on the Company's financial condition, results of operations or cash flows. | |
Brazilian Tax Disputes | |
The Company is involved in a number of tax disputes with federal, state and municipal tax authorities in Brazil. These disputes are at various stages of the legal process, including the administrative review phase and the collection action phase, and include assessments of fixed amounts of principal and penalties, plus interest charges that increase at statutorily determined amounts per month and are assessed on the aggregate amount of the principal and penalties. In addition, the losing party at the collection action or court of appeals phase could be subject to a charge to cover statutorily mandated legal fees, which are generally calculated as a percentage of the total assessed amounts due, inclusive of penalty and interest. A large number of the claims relate to value-added ("ICMS") services and social security ("INSS") tax disputes. The largest proportion of the assessed amounts relate to ICMS claims filed by the State Revenue Authorities from the State of São Paulo, Brazil (the "SPRA"), encompassing the period from January 2002 to May 2005. | |
In October 2009, the Company received notification of the SPRA’s final administrative decision regarding the levying of ICMS in the State of São Paulo in relation to services provided to a customer in the State between January 2004 and May 2005. As of March 31, 2014, the principal amount of the tax assessment from the SPRA with regard to this case was approximately $3 million, with penalty, interest and fees assessed to date increasing such amount by an additional $28 million. Any change in the aggregate amount since the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 reflects an increase in assessed interest and statutorily mandated legal fees for the period and includes the effect of foreign currency translation. | |
Another ICMS tax case involving the SPRA refers to the tax period from January 2002 to December 2003. This case is still pending at the administrative phase, where the aggregate amount assessed by the tax authorities in August 2005 was approximately $11 million (the amounts with regard to this claim are valued as of the date of the assessment since it has not yet reached the collection phase), composed of a principal amount of $2.5 million, with penalty and interest assessed through that date increasing such amount by an additional $8.5 million. All such amounts include the effect of foreign currency translation. | |
The Company continues to believe it is not probable that it will incur a loss for these assessments by the SPRA. The Company also continues to believe that sufficient coverage for these claims exists as a result of the Company’s customer’s indemnification obligations and such customer’s pledge of assets in connection with the October 2009 notice, as required by Brazilian procedure. | |
The Company intends to continue its practice of vigorously defending itself against these tax claims under various alternatives, including judicial appeal. The Company will continue to evaluate its potential liability with regard to these claims on a quarterly basis; however, it is not possible to predict the ultimate outcome of these tax-related disputes in Brazil. No loss provision has been recorded in the Company's consolidated financial statements because the loss contingency is not deemed probable, and the Company does not expect that any costs that are reasonably possible to be incurred by the Company in connection with Brazilian tax disputes would have a material adverse effect on the Company's financial condition, results of operations or cash flows. | |
Other | |
In the United States, the Company has been named as one of many defendants (approximately 90 or more in most cases) in legal actions alleging personal injury from exposure to airborne asbestos over the past several decades. In their suits, the plaintiffs have named as defendants, among others, many manufacturers, distributors and installers of numerous types of equipment or products that allegedly contained asbestos. | |
The Company believes that the claims against it are without merit. The Company has never been a producer, manufacturer or processor of asbestos fibers. Any component within a Company product that may have contained asbestos would have been purchased from a supplier. Based on scientific and medical evidence, the Company believes that any asbestos exposure arising from normal use of any Company product never presented any harmful levels of airborne asbestos exposure, and, moreover, the type of asbestos contained in any component that was used in those products was protectively encapsulated in other materials and is not associated with the types of injuries alleged in the pending suits. Finally, in most of the depositions taken of plaintiffs to date in the litigation against the Company, plaintiffs have failed to specifically identify any Company products as the source of their asbestos exposure. | |
The majority of the asbestos complaints pending against the Company have been filed in New York. Almost all of the New York complaints contain a standard claim for damages of $20 million or $25 million against the approximately 90 defendants, regardless of the individual plaintiff’s alleged medical condition, and without specifically identifying any Company product as the source of plaintiff’s asbestos exposure. | |
As of March 31, 2014, there are 17,515 pending asbestos personal injury claims filed against the Company. Of these cases, 17,129 are pending in the New York Supreme Court for New York County in New York State. The other claims, totaling 386, are filed in various counties in a number of state courts, and in certain Federal District Courts (including New York), and those complaints generally assert lesser amounts of damages than the New York State court cases or do not state any amount claimed. | |
As of March 31, 2014, the Company has obtained dismissal by stipulation, or summary judgment prior to trial, in 27,307 cases. | |
In view of the persistence of asbestos litigation nationwide, the Company expects to continue to receive additional claims. However, there have been developments during the past several years, both by certain state legislatures and by certain state courts, which could favorably affect the Company’s ability to defend these asbestos claims in those jurisdictions. These developments include procedural changes, docketing changes, proof of damage requirements and other changes that require plaintiffs to follow specific procedures in bringing their claims and to show proof of damages before they can proceed with their claim. An example is the action taken by the New York Supreme Court (a trial court), which is responsible for managing all asbestos cases pending within New York County in the State of New York. This Court issued an order in December 2002 that created a Deferred or Inactive Docket for all pending and future asbestos claims filed by plaintiffs who cannot demonstrate that they have a malignant condition or discernible physical impairment, and an Active or In Extremis Docket for plaintiffs who are able to show such medical condition. As a result of this order, the majority of the asbestos cases filed against the Company in New York County have been moved to the Inactive Docket until such time as the plaintiffs can show that they have incurred a physical impairment. As of March 31, 2014, the Company has been listed as a defendant in 218 Active or In Extremis asbestos cases in New York County. The Court’s Order has been challenged by some plaintiffs. | |
Except with regard to the legal costs in a few limited, exceptional cases, the Company’s insurance carrier has paid all legal and settlement costs and expenses to date related to the Company’s U.S. asbestos cases. The Company has liability insurance coverage under various primary and excess policies that the Company believes will be available, if necessary, to substantially cover any liability that might ultimately be incurred on these claims. | |
The Company intends to continue its practice of vigorously defending these claims and cases. It is not possible to predict the ultimate outcome of asbestos-related lawsuits, claims and proceedings due to the unpredictable nature of personal injury litigation, and no loss provision has been recorded in the Company's consolidated financial statements because a loss contingency is not deemed probable or estimable. Despite this uncertainty, and although results of operations and cash flows for a given period could be adversely affected by asbestos-related lawsuits, claims and proceedings, the Company does not expect that any costs that are reasonably possible to be incurred by the Company in connection with asbestos litigation would have a material adverse effect on the Company's financial condition, results of operations or cash flows. | |
The Company is subject to various other claims and legal proceedings covering a wide range of matters that arose in the ordinary course of business. In the opinion of management, all such matters are adequately covered by insurance or by established reserves, and, if not so covered, are without merit or are of such kind, or involve such amounts, as would not have a material adverse effect on the financial position, results of operations or cash flows of the Company. | |
Insurance liabilities are recorded when it is probable that a liability has been incurred for a particular event and the amount of loss associated with the event can be reasonably estimated. Insurance reserves have been estimated based primarily upon actuarial calculations and reflect the undiscounted estimated liabilities for ultimate losses, including claims incurred but not reported. Inherent in these estimates are assumptions that are based on the Company’s history of claims and losses, a detailed analysis of existing claims with respect to potential value, and current legal and legislative trends. If actual claims differ from those projected by management, changes (either increases or decreases) to insurance reserves may be required and would be recorded through income in the period the change was determined. When a recognized liability is covered by third-party insurance, the Company records an insurance claim receivable to reflect the covered liability. Insurance claim receivables are included in Other receivables on the Company’s Condensed Consolidated Balance Sheets. See Note 1, Summary of Significant Accounting Policies, to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 for additional information on Accrued Insurance and Loss Reserves. |
Reconciliation_of_Basic_and_Di
Reconciliation of Basic and Diluted Shares | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Reconciliation of Basic and Diluted Shares | ' | ||||||||
Reconciliation of Basic and Diluted Shares | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands, except per share amounts) | 2014 | 2013 | |||||||
Income from continuing operations attributable to Harsco Corporation common stockholders | $ | 11,542 | $ | 7,642 | |||||
Weighted-average shares outstanding - basic | 80,816 | 80,706 | |||||||
Dilutive effect of stock-based compensation | 206 | 224 | |||||||
Weighted-average shares outstanding - diluted | 81,022 | 80,930 | |||||||
Earnings from continuing operations per common share, attributable to Harsco Corporation common stockholders: | |||||||||
Basic | $ | 0.14 | $ | 0.09 | |||||
Diluted | $ | 0.14 | $ | 0.09 | |||||
The following average outstanding stock-based compensation units were not included in the three months ended computation of diluted earnings per share because the effect was antidilutive: | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Stock options | 215 | 304 | |||||||
Stock appreciation rights | 15 | — | |||||||
Derivative_Instruments_Hedging
Derivative Instruments, Hedging Activities and Fair Value | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Derivative Instruments, Hedging Activities And Fair Value Disclosure [Abstract] | ' | |||||||||||||||||
Derivative Instruments, Hedging Activities and Fair Value | ' | |||||||||||||||||
Derivative Instruments, Hedging Activities and Fair Value | ||||||||||||||||||
Derivative Instruments and Hedging Activities | ||||||||||||||||||
The Company uses derivative instruments, including foreign currency forward exchange contracts, cross-currency interest rate swaps and, at times, commodity contracts, to manage certain foreign currency, interest rate and commodity price exposures. Derivative instruments are viewed as risk management tools by the Company and are not used for trading or speculative purposes. | ||||||||||||||||||
All derivative instruments are recorded on the Condensed Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives used to hedge foreign currency denominated balance sheet items are reported directly in earnings, along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate and if the criteria for hedge accounting are met. Gains and losses on derivatives designated as cash flow hedges are deferred as a separate component of equity and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. Generally, at March 31, 2014, these deferred gains and losses are reclassified to earnings over 10 to 15 years from the balance sheet date. The ineffective portion of all hedges, if any, is recognized currently in earnings. | ||||||||||||||||||
The fair values of outstanding derivative contracts recorded as assets and liabilities on the Condensed Consolidated Balance Sheets at March 31, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(In thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||
March 31, 2014 | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 52 | Other current liabilities | $ | 45 | ||||||||||||
Cross-currency interest rate swaps | Other assets | 24,046 | Other liabilities | 17,412 | ||||||||||||||
Total derivatives designated as hedging instruments | $ | 24,098 | $ | 17,457 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 3,729 | Other current liabilities | $ | 2,770 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(In thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||
December 31, 2013 | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 40 | Other current liabilities | $ | 17 | ||||||||||||
Cross-currency interest rate swaps | Other assets | 26,001 | Other liabilities | 13,410 | ||||||||||||||
Total derivatives designated as hedging instruments | $ | 26,041 | $ | 13,427 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 1,216 | Other current liabilities | $ | 3,267 | ||||||||||||
All of the Company's derivatives are recorded in the Condensed Consolidated Balance Sheets at gross amounts and not offset. All of the Company's cross-currency interest rate swaps and certain foreign currency forward exchange contracts are transacted under International Swaps and Derivatives Association ("ISDA") documentation. Each ISDA master agreement permits the net settlement of amounts owed in the event of default. The Company's derivative assets and liabilities subject to enforceable master netting arrangements resulted in a $0.1 million net liability at both March 31, 2014 and December 31, 2013. | ||||||||||||||||||
The effect of derivative instruments on the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2014 and 2013 was as follows: | ||||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||
(In thousands) | Amount of Gain (Loss) Recognized in Other | Location of Gain | Amount of | Location of Gain | Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portion and Amount | |||||||||||||
Comprehensive | (Loss) Reclassified | Gain (Loss) | (Loss) Recognized in Income on Derivative - Ineffective Portion | Excluded from | ||||||||||||||
Income (“OCI”) on Derivative - | from Accumulated | Reclassified from | and Amount | Effectiveness Testing | ||||||||||||||
Effective Portion | OCI into Income - | Accumulated OCI into Income - | Excluded from | |||||||||||||||
Effective Portion | Effective Portion | Effectiveness Testing | ||||||||||||||||
Three Months Ended March 31, 2014: | ||||||||||||||||||
Foreign currency forward exchange contracts | $ | 11 | Cost of services and products sold | $ | (2 | ) | $ | — | ||||||||||
Cross-currency interest rate swaps | (4,360 | ) | — | Cost of services and products sold | (1,574 | ) | (a) | |||||||||||
$ | (4,349 | ) | $ | (2 | ) | $ | (1,574 | ) | ||||||||||
Three Months Ended March 31, 2013: | ||||||||||||||||||
Foreign currency forward exchange contracts | $ | 5 | Cost of services and products sold | $ | (6 | ) | $ | — | ||||||||||
Cross-currency interest rate swaps | 2,493 | — | Cost of services and products sold | 20,453 | (a) | |||||||||||||
$ | 2,498 | $ | (6 | ) | $ | 20,453 | ||||||||||||
(a) These gains (losses) offset foreign currency fluctuation effects on the debt principal. | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||
Location of Gain | Amount of Gain (Loss) Recognized in | |||||||||||||||||
(Loss) Recognized in | Income on Derivative for the | |||||||||||||||||
Income on Derivative | Three Months Ended March 31 (a) | |||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||||
Foreign currency forward exchange contracts | Cost of services and products sold | $ | 1,556 | $ | 2,059 | |||||||||||||
(a) These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures. | ||||||||||||||||||
Foreign Currency Forward Exchange Contracts | ||||||||||||||||||
The Company conducts business in multiple currencies and, accordingly, is subject to the inherent risks associated with foreign exchange rate movements. The financial position and results of operations of substantially all of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Foreign currency-denominated assets and liabilities are translated into U.S. dollars at the exchange rates existing at the respective balance sheet dates. Income and expense items are translated at the average exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries are deferred and recorded in Accumulated other comprehensive loss, which is a separate component of equity. | ||||||||||||||||||
The Company uses derivative instruments to hedge cash flows related to foreign currency fluctuations. Foreign currency forward exchange contracts outstanding are part of a worldwide program to minimize foreign currency exchange operating income and balance sheet exposure by offsetting foreign currency exposures of certain future payments between the Company and its various subsidiaries, suppliers or customers. These unsecured contracts are with major financial institutions. The Company may be exposed to credit loss in the event of non-performance by the contract counterparties. The Company evaluates the creditworthiness of the counterparties and does not expect default by them. Foreign currency forward exchange contracts are used to hedge commitments, such as foreign currency debt, firm purchase commitments and foreign currency cash flows for certain export sales transactions. | ||||||||||||||||||
The following tables summarize, by major currency, the contractual amounts of the Company’s foreign currency forward exchange contracts in U.S. dollars at March 31, 2014 and December 31, 2013. The “Buy” amounts represent the U.S. dollar equivalent of commitments to purchase foreign currencies, and the “Sell” amounts represent the U.S. dollar equivalent of commitments to sell foreign currencies. The recognized gains and losses offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures. | ||||||||||||||||||
Contracted Amounts of Foreign Currency Forward Exchange Contracts Outstanding at March 31, 2014: | ||||||||||||||||||
(In thousands) | Type | U.S. Dollar | Maturity | Recognized | ||||||||||||||
Equivalent | Gain (Loss) | |||||||||||||||||
British pounds sterling | Sell | $ | 27,256 | Apr-14 | $ | (76 | ) | |||||||||||
British pounds sterling | Buy | 10,144 | Apr-14 | 45 | ||||||||||||||
Euros | Sell | 252,913 | April 2014 through July 2014 | 3,258 | ||||||||||||||
Euros | Buy | 243,761 | April 2014 through September 2014 | (2,455 | ) | |||||||||||||
Other currencies | Sell | 16,289 | April 2014 through August 2014 | 52 | ||||||||||||||
Other currencies | Buy | 10,827 | April 2014 through August 2014 | 142 | ||||||||||||||
Total | $ | 561,190 | $ | 966 | ||||||||||||||
Included in the contracted amounts of foreign currency exchange forward contracts outstanding at March 31, 2014 are $125.0 million of foreign currency exchange forward contracts entered into by the Company under the Transition Services Agreement with Brand. The Company has recognized a $0.1 million mark-to-market liability associated with these foreign currency exchange forward contracts. | ||||||||||||||||||
Contracted Amounts of Foreign Currency Forward Exchange Contracts Outstanding at December 31, 2013: | ||||||||||||||||||
(In thousands) | Type | U.S. Dollar | Maturity | Recognized | ||||||||||||||
Equivalent | Gain (Loss) | |||||||||||||||||
British pounds sterling | Sell | $ | 26,931 | Jan-14 | $ | (277 | ) | |||||||||||
British pounds sterling | Buy | 1,976 | Jan-14 | 15 | ||||||||||||||
Euros | Sell | 248,943 | January 2014 through July 2014 | (335 | ) | |||||||||||||
Euros | Buy | 242,385 | January 2014 through March 2014 | (1,335 | ) | |||||||||||||
Other currencies | Sell | 12,708 | January 2014 through July 2014 | (134 | ) | |||||||||||||
Other currencies | Buy | 8,907 | January 2014 through August 2014 | 38 | ||||||||||||||
Total | $ | 541,850 | $ | (2,028 | ) | |||||||||||||
Included in the contracted amounts of foreign currency exchange forward contracts outstanding at December 31, 2013 are $121.2 million of foreign currency exchange forward contracts entered into by the Company under the Transition Services Agreement with Brand. The Company has recognized a $0.7 million mark-to-market liability associated with these foreign currency exchange forward contracts. | ||||||||||||||||||
In addition to foreign currency forward exchange contracts, the Company designates certain loans as hedges of net investments in international subsidiaries. The Company recorded pre-tax net gain of $0.2 million and $1.7 million during the three months ended March 31, 2014 and 2013, respectively, into Accumulated other comprehensive loss. | ||||||||||||||||||
Cross-Currency Interest Rate Swaps | ||||||||||||||||||
The Company uses cross-currency interest rate swaps in conjunction with certain debt issuances in order to secure a fixed local currency interest rate. Under these cross-currency interest rate swaps, the Company receives interest based on a fixed or floating U.S. dollar rate and pays interest on a fixed local currency rate based on the contractual amounts in dollars and the local currency, respectively. The cross-currency interest rate swaps are recorded on the Condensed Consolidated Balance Sheets at fair value, with changes in value attributed to the effect of the swaps’ interest spread recorded in Accumulated other comprehensive loss. Changes in value attributed to the effect of foreign currency fluctuations are recorded in the statements of operations and offset currency fluctuation effects on the debt principal. The following table indicates the contractual amounts of the Company's cross-currency interest rate swaps at March 31, 2014: | ||||||||||||||||||
Interest Rates | ||||||||||||||||||
(In millions) | Contractual Amount | Receive | Pay | |||||||||||||||
Maturing 2018 | $ | 250 | Fixed U.S. dollar rate | Fixed euro rate | ||||||||||||||
Maturing 2020 | 220 | Fixed U.S. dollar rate | Fixed British pound sterling rate | |||||||||||||||
Maturing 2016 through 2017 | 10.2 | Floating U.S. dollar rate | Fixed rupee rate | |||||||||||||||
Fair Value of Derivative Assets and Liabilities and Other Financial Instruments | ||||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The Company utilizes market data or assumptions that the Company believes market participants would use in valuing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. | ||||||||||||||||||
The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs), and (2) an entity’s own assumptions about market participant assumptions based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | ||||||||||||||||||
• | Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||||||||||
• | Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |||||||||||||||||
• | Level 3—Inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||||||
In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | ||||||||||||||||||
The following table indicates the fair value hierarchy of the financial instruments of the Company at March 31, 2014 and December 31, 2013: | ||||||||||||||||||
Level 2 Fair Value Measurements | March 31 | December 31 | ||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||||
Assets | ||||||||||||||||||
Foreign currency forward exchange contracts | $ | 3,781 | $ | 1,256 | ||||||||||||||
Cross-currency interest rate swaps | 24,046 | 26,001 | ||||||||||||||||
Liabilities | ||||||||||||||||||
Foreign currency forward exchange contracts | 2,815 | 3,284 | ||||||||||||||||
Cross-currency interest rate swaps | 17,412 | 13,410 | ||||||||||||||||
The following table reconciles the beginning and ending balances for liabilities measured on a recurring basis using unobservable inputs (Level 3) for three months ended March 31, 2014: | ||||||||||||||||||
Level 3 Liabilities—Unit Adjustment Liability (a) for the Three Months Ended March 31 (b) | 2014 | |||||||||||||||||
(In thousands) | ||||||||||||||||||
Balance at December 31, 2013 | $ | 106,343 | ||||||||||||||||
Payments | (5,580 | ) | ||||||||||||||||
Change in fair value to unit adjustment liability | 2,546 | |||||||||||||||||
Balance at March 31, 2014 | $ | 103,308 | ||||||||||||||||
(a) See Note 5, Equity Method Investments, for additional information related to the unit adjustment liability. | ||||||||||||||||||
(b) Does not total due to rounding. | ||||||||||||||||||
The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information. Accordingly, the Company utilizes valuation techniques that maximize the use of observable inputs, such as forward rates, interest rates, the Company’s credit risk and counterparties’ credit risks, and which minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the ability to observe those inputs. Commodity derivatives, foreign currency forward exchange contracts and cross-currency interest rate swaps are classified as Level 2 fair value based upon pricing models using market-based inputs. Model inputs can be verified, and valuation techniques do not involve significant management judgment. | ||||||||||||||||||
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and short-term borrowings approximate fair value due to the short-term maturities of these assets and liabilities. At March 31, 2014 and December 31, 2013, the total fair value of long-term debt, including current maturities, was $893.1 million and $832.6 million, respectively, compared with a carrying value of $855.9 million and $803.4 million at March 31, 2014 and December 31, 2013, respectively. Fair values for debt are based on quoted market prices (Level 1) for the same or similar issues, or on the current rates offered to the Company for debt of the same remaining maturities. |
Review_of_Operations_by_Segmen
Review of Operations by Segment | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Review of Operations by Segment | ' | ||||||||
Review of Operations by Segment | |||||||||
The Company has reclassified segment operating results for the three months ended March 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 from continuing operations or income from continuing operations before income taxes and equity loss. | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Revenues From Continuing Operations | |||||||||
Harsco Metals & Minerals | $ | 353,038 | $ | 337,324 | |||||
Harsco Infrastructure | — | 216,059 | |||||||
Harsco Industrial | 102,100 | 90,446 | |||||||
Harsco Rail | 57,561 | 71,566 | |||||||
Total revenues from continuing operations | $ | 512,699 | $ | 715,395 | |||||
Operating Income (Loss) From Continuing Operations | |||||||||
Harsco Metals & Minerals | $ | 23,218 | $ | 23,229 | |||||
Harsco Infrastructure | — | (7,052 | ) | ||||||
Harsco Industrial | 16,571 | 15,609 | |||||||
Harsco Rail | 5,499 | 3,178 | |||||||
Corporate (a) | (12,949 | ) | (9,179 | ) | |||||
Total operating income from continuing operations | $ | 32,339 | $ | 25,785 | |||||
(a) For the three months ended March 31, 2014, Corporate includes a $2.1 million loss on disposal of the Harsco Infrastructure Segment and transaction costs and $1.4 million of net periodic pension cost for defined benefit pension plans retained by the Company as part of the Infrastructure transaction. | |||||||||
Reconciliation of Segment Operating Income to Income From Continuing Operations Before Income Taxes and Equity Loss | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Segment operating income | $ | 45,288 | $ | 34,964 | |||||
General Corporate expense | (12,949 | ) | (9,179 | ) | |||||
Operating income from continuing operations | 32,339 | 25,785 | |||||||
Interest income | 297 | 406 | |||||||
Interest expense | (11,421 | ) | (11,743 | ) | |||||
Change in fair value to unit adjustment liability | (2,546 | ) | — | ||||||
Income from continuing operations before income taxes and equity loss | $ | 18,669 | $ | 14,448 | |||||
Other_Income
Other Income | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Income and Expenses [Abstract] | ' | ||||||||
Other Expenses | ' | ||||||||
Other Income | |||||||||
This Condensed Consolidated Statements of Operations classification includes costs for employee termination benefit costs, impaired asset write-downs, costs to exit activities and net gains on the disposal of non-core assets. | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Net gains | $ | (2,358 | ) | $ | (3,692 | ) | |||
Other | 1,702 | 2,150 | |||||||
Other income | $ | (656 | ) | $ | (1,542 | ) |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | |||||||||||||||||||||
Accumulated other comprehensive loss is included on the Condensed Consolidated Statements of Stockholders' Equity. The components of Accumulated other comprehensive loss, net of the effect of income taxes, and activity for the three months ended March 31, 2013 and 2014 was as follows: | |||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) - Net of Tax | |||||||||||||||||||||
(In thousands) | Cumulative Foreign Exchange Translation Adjustments | Effective Portion of Derivatives Designated as Hedging Instruments | Cumulative Unrecognized Actuarial Losses on Pension Obligations | Unrealized Loss on Marketable Securities | Total | ||||||||||||||||
Balance at December 31, 2012 | $ | 62,308 | $ | (8,139 | ) | $ | (465,286 | ) | $ | (51 | ) | $ | (411,168 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (12,016 | ) | (a) | 2,055 | (b) | 23,021 | (a) | 8 | 13,068 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 6 | 4,982 | — | 4,988 | ||||||||||||||||
Total other comprehensive income (loss) | (12,016 | ) | 2,061 | 28,003 | 8 | 18,056 | |||||||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | 178 | — | — | — | 178 | ||||||||||||||||
Other comprehensive income (loss) attributable to Harsco Corporation | (11,838 | ) | 2,061 | 28,003 | 8 | 18,234 | |||||||||||||||
Balance at March 31, 2013 | $ | 50,470 | $ | (6,078 | ) | $ | (437,283 | ) | $ | (43 | ) | $ | (392,934 | ) | |||||||
Components of Accumulated Other Comprehensive Income (Loss) - Net of Tax | |||||||||||||||||||||
(In thousands) | Cumulative Foreign Exchange Translation Adjustments | Effective Portion of Derivatives Designated as Hedging Instruments | Cumulative Unrecognized Actuarial Losses on Pension Obligations | Unrealized Loss on Marketable Securities | Total | ||||||||||||||||
Balance at December 31, 2013 | $ | 6,110 | $ | (7,023 | ) | $ | (369,682 | ) | $ | (20 | ) | $ | (370,615 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 1,090 | (a) | (3,964 | ) | (b) | (1,051 | ) | (a) | (5 | ) | (3,930 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 1 | 4,100 | — | 4,101 | ||||||||||||||||
Other comprehensive loss from equity method investee | (913 | ) | — | 632 | — | (281 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss in connection with the Infrastructure transaction | (1,447 | ) | — | — | — | (1,447 | ) | ||||||||||||||
Total other comprehensive income (loss) | (1,270 | ) | (3,963 | ) | 3,681 | (5 | ) | (1,557 | ) | ||||||||||||
Less: Other comprehensive (income) loss attributable to noncontrolling interests | 300 | — | — | — | 300 | ||||||||||||||||
Other comprehensive income (loss) attributable to Harsco Corporation | (970 | ) | (3,963 | ) | 3,681 | (5 | ) | (1,257 | ) | ||||||||||||
Balance at March 31, 2014 | $ | 5,140 | $ | (10,986 | ) | $ | (366,001 | ) | $ | (25 | ) | $ | (371,872 | ) | |||||||
(a) Principally foreign currency fluctuation. | |||||||||||||||||||||
(b) Net change from periodic revaluations. | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss are as follows: | |||||||||||||||||||||
(In thousands) | Three Months Ended | Three Months Ended March 31 2013 | Affected Caption in the Condensed Consolidated Statements of Operations | ||||||||||||||||||
31-Mar | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Amortization of defined benefit pension items (a): | |||||||||||||||||||||
Actuarial losses (b) | $ | 2,839 | $ | 3,147 | Selling, general and administrative expenses | ||||||||||||||||
Actuarial losses (b) | 1,552 | 2,266 | Cost of services and products sold | ||||||||||||||||||
Prior-service costs (b) | 23 | 64 | Selling, general and administrative expenses | ||||||||||||||||||
Prior-service costs (b) | 45 | 63 | Cost of services and products sold | ||||||||||||||||||
Total before tax | 4,459 | 5,540 | |||||||||||||||||||
Tax benefit | (359 | ) | (558 | ) | |||||||||||||||||
Total reclassification of defined benefit pension items, net of tax | $ | 4,100 | $ | 4,982 | |||||||||||||||||
Amortization of cash flow hedging instruments (a): | |||||||||||||||||||||
Foreign currency forward exchange contracts | $ | 2 | $ | 6 | Cost of services and products sold | ||||||||||||||||
Tax benefit | (1 | ) | — | ||||||||||||||||||
Total reclassification of cash flow hedging instruments | $ | 1 | $ | 6 | |||||||||||||||||
(a) Amounts in parentheses indicate credits to profit/loss. | |||||||||||||||||||||
(b) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See Note 8, Employee Benefit Plans, for additional details. |
Restructuring_Programs
Restructuring Programs | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||
Restructuring Programs | ' | ||||||||||
Restructuring Programs | |||||||||||
In recent years, the Company has instituted restructuring programs to balance short-term profitability goals with long-term strategies. A primary objective of these programs has been to establish platforms upon which the affected businesses can grow with reduced fixed investment and generate annual operating expense savings. The restructuring programs have been instituted in response to the continuing impact of global financial and economic uncertainty on the Company’s end markets. Restructuring costs incurred in these programs were recorded in the Other income caption of the Condensed Consolidated Statements of Operations. The timing of associated cash payments is dependent on the type of restructuring cost and can extend over a multi-year period. The remaining accrual for restructuring programs was $4.6 million and $5.1 million at March 31, 2014 and December 31, 2013, respectively. The remaining accrual at March 31, 2014 relates primarily to exit activity costs for lease terminations expected to be paid over the remaining life of the leases. | |||||||||||
Accounts_Receivable_and_Invent1
Accounts Receivable and Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounts Receivable And Inventories | ' | ||||||||
Schedule of accounts receivable | ' | ||||||||
Accounts receivable consist of the following: | |||||||||
(In thousands) | March 31 | December 31 | |||||||
2014 | 2013 | ||||||||
Trade accounts receivable | $ | 406,267 | $ | 359,819 | |||||
Less: Allowance for doubtful accounts | (6,566 | ) | (6,638 | ) | |||||
Trade accounts receivable, net | $ | 399,701 | $ | 353,181 | |||||
Other receivables (a) | $ | 52,078 | $ | 46,470 | |||||
(a) Other receivables include insurance claim receivables, employee receivables, tax claim receivables and other miscellaneous receivables not included in Trade accounts receivable, net. | |||||||||
Schedule of provision for doubtful accounts related to trade accounts receivable | ' | ||||||||
The provision for doubtful accounts related to trade accounts receivable was as follows: | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Provision for doubtful accounts related to trade accounts receivable | $ | (19 | ) | $ | 2,217 | ||||
Schedule of inventories | ' | ||||||||
Inventories consist of the following: | |||||||||
(In thousands) | March 31 | December 31 | |||||||
2014 | 2013 | ||||||||
Finished goods | $ | 22,234 | $ | 23,112 | |||||
Work-in-process | 31,044 | 25,623 | |||||||
Raw materials and purchased parts | 82,627 | 72,118 | |||||||
Stores and supplies | 30,873 | 34,836 | |||||||
Inventories | $ | 166,778 | $ | 155,689 | |||||
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Schedule of Equity Method Investments [Line Items] | ' | ||||||||
Equity Method Investments [Table Text Block] | ' | ||||||||
Brand's results of operations for the period ended December 31, 2013 are summarized as follows: | |||||||||
(In thousands) | December 31 | ||||||||
2013 | |||||||||
Summarized Balance Sheet Information of Brand: | |||||||||
Current assets | $ | 728,131 | |||||||
Property and equipment , net | 886,305 | ||||||||
Other noncurrent assets | 1,743,965 | ||||||||
Total assets | $ | 3,358,401 | |||||||
Short-term borrowings, including current portion of long-term debt | $ | 13,829 | |||||||
Other current liabilities | 386,908 | ||||||||
Long-term debt | 1,756,757 | ||||||||
Other noncurrent liabilities | 415,840 | ||||||||
Total liabilities | 2,573,334 | ||||||||
Equity | 785,067 | ||||||||
Total liabilities and equity | $ | 3,358,401 | |||||||
(In thousands) | Period From November 27, 2013 Through December 31, 2013 | ||||||||
Summarized Statement of Operations Information of Brand: | |||||||||
Net revenues | $ | 236,094 | |||||||
Gross profit | 48,832 | ||||||||
Net loss | (4,245 | ) | |||||||
Harsco's equity in income of Brand (a) | (1,231 | ) | |||||||
(a) The Company's equity method investment in Brand began on November 26, 2013 and accordingly there is only approximately one month of related equity loss. The results of the Harsco Infrastructure Segment from January 1, 2013 through the date of closing are reported in the Company's results of operations for 2013. | |||||||||
Schedule of Related Party Transactions [Table Text Block] | ' | ||||||||
Balances related to transactions between the Company and Brand are as follows: | |||||||||
(In thousands) | March 31 | December 31 | |||||||
2014 | 2013 | ||||||||
Balances due from Brand | $ | 22,925 | $ | 85,908 | |||||
Balances due to Brand | 43,009 | 149,325 | |||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of property, plant and equipment | ' | ||||||||
Property, plant and equipment consists of the following: | |||||||||
(In thousands) | March 31 | December 31 | |||||||
2014 | 2013 | ||||||||
Land | $ | 16,431 | $ | 16,652 | |||||
Land improvements | 13,758 | 13,615 | |||||||
Buildings and improvements | 213,409 | 192,346 | |||||||
Machinery and equipment | 1,996,779 | 1,969,493 | |||||||
Uncompleted construction | 76,587 | 86,508 | |||||||
Gross property, plant and equipment | 2,316,964 | 2,278,614 | |||||||
Less: Accumulated depreciation | (1,593,945 | ) | (1,567,268 | ) | |||||
Property, plant and equipment, net | $ | 723,019 | $ | 711,346 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of changes in carrying amounts of goodwill by segment | ' | ||||||||||||||||||||
The following table reflects the changes in carrying amounts of goodwill by segment for the three months ended March 31, 2014: | |||||||||||||||||||||
(In thousands) | Harsco Metals & Minerals Segment | Harsco Industrial Segment | Harsco Rail | Consolidated | |||||||||||||||||
Segment | Totals | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 421,955 | $ | — | $ | 9,310 | $ | 431,265 | |||||||||||||
Changes to goodwill (a) | — | 7,949 | — | 7,949 | |||||||||||||||||
Foreign currency translation | (367 | ) | — | — | (367 | ) | |||||||||||||||
Balance at March 31, 2014 | $ | 421,588 | $ | 7,949 | $ | 9,310 | $ | 438,847 | |||||||||||||
(a) Changes to goodwill relate to the acquisition of Hammco. See Note 3, Acquisitions and Dispositions. | |||||||||||||||||||||
Schedule of intangible assets by class | ' | ||||||||||||||||||||
Intangible assets consist of the following: | |||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||
(In thousands) | Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||
Customer related | $ | 163,901 | $ | 112,318 | $ | 150,307 | $ | 110,889 | |||||||||||||
Non-compete agreements | 1,126 | 1,032 | 1,126 | 1,024 | |||||||||||||||||
Patents | 6,237 | 5,344 | 6,211 | 5,273 | |||||||||||||||||
Technology related | 26,957 | 19,469 | 27,185 | 18,931 | |||||||||||||||||
Trade names | 7,667 | 3,159 | 4,113 | 2,969 | |||||||||||||||||
Other | 7,629 | 4,356 | 7,753 | 4,348 | |||||||||||||||||
Total | $ | 213,517 | $ | 145,678 | $ | 196,695 | $ | 143,434 | |||||||||||||
Schedule of amortization expense | ' | ||||||||||||||||||||
Amortization expense for intangible assets was as follows: | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
31-Mar | |||||||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||||||
Amortization expense for intangible assets | $ | 2,553 | $ | 3,948 | |||||||||||||||||
Schedule of estimated amortization expense | ' | ||||||||||||||||||||
The estimated amortization expense for the next five fiscal years based on current intangible assets is as follows: | |||||||||||||||||||||
(In thousands) | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
Estimated amortization expense (a) | $ | 10,000 | $ | 8,500 | $ | 8,000 | $ | 5,000 | $ | 4,750 | |||||||||||
(a) These estimated amortization expense amounts do not reflect the potential effect of future foreign currency exchange fluctuations. |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||
Schedule of net benefit costs | ' | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31 | |||||||||||||||||
Defined Benefit Net Periodic Pension Cost | U. S. Plans | International Plans | |||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Defined benefit plans: | |||||||||||||||||
Service cost | $ | 558 | $ | 641 | $ | 407 | $ | 909 | |||||||||
Interest cost | 3,217 | 2,941 | 10,912 | 10,781 | |||||||||||||
Expected return on plan assets | (4,196 | ) | (3,909 | ) | (12,588 | ) | (11,819 | ) | |||||||||
Recognized prior service costs | 22 | 35 | 46 | 92 | |||||||||||||
Recognized loss | 838 | 1,263 | 3,553 | 4,150 | |||||||||||||
Defined benefit plans net periodic pension cost | $ | 439 | $ | 971 | $ | 2,330 | $ | 4,113 | |||||||||
Schedule of contributions to pension plans | ' | ||||||||||||||||
Three Months Ended | |||||||||||||||||
Company Contributions | March 31 | ||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||
Defined benefit pension plans: | |||||||||||||||||
United States | $ | 566 | $ | 483 | |||||||||||||
International | 17,421 | 17,559 | |||||||||||||||
Multiemployer pension plans | 701 | 2,816 | |||||||||||||||
Defined contribution pension plans | 4,069 | 4,828 | |||||||||||||||
Reconciliation_of_Basic_and_Di1
Reconciliation of Basic and Diluted Shares (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Reconciliation of basic and diluted shares | ' | ||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands, except per share amounts) | 2014 | 2013 | |||||||
Income from continuing operations attributable to Harsco Corporation common stockholders | $ | 11,542 | $ | 7,642 | |||||
Weighted-average shares outstanding - basic | 80,816 | 80,706 | |||||||
Dilutive effect of stock-based compensation | 206 | 224 | |||||||
Weighted-average shares outstanding - diluted | 81,022 | 80,930 | |||||||
Earnings from continuing operations per common share, attributable to Harsco Corporation common stockholders: | |||||||||
Basic | $ | 0.14 | $ | 0.09 | |||||
Diluted | $ | 0.14 | $ | 0.09 | |||||
Schedule of antidilutive securities excluded from computation of earnings per share | ' | ||||||||
The following average outstanding stock-based compensation units were not included in the three months ended computation of diluted earnings per share because the effect was antidilutive: | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Stock options | 215 | 304 | |||||||
Stock appreciation rights | 15 | — | |||||||
Derivative_Instruments_Hedging1
Derivative Instruments, Hedging Activities and Fair Value (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Derivative Instruments, Hedging Activities And Fair Value Disclosure [Abstract] | ' | |||||||||||||||||
Schedule of fair value of outstanding derivative contracts | ' | |||||||||||||||||
The fair values of outstanding derivative contracts recorded as assets and liabilities on the Condensed Consolidated Balance Sheets at March 31, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(In thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||
March 31, 2014 | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 52 | Other current liabilities | $ | 45 | ||||||||||||
Cross-currency interest rate swaps | Other assets | 24,046 | Other liabilities | 17,412 | ||||||||||||||
Total derivatives designated as hedging instruments | $ | 24,098 | $ | 17,457 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 3,729 | Other current liabilities | $ | 2,770 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(In thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||
December 31, 2013 | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 40 | Other current liabilities | $ | 17 | ||||||||||||
Cross-currency interest rate swaps | Other assets | 26,001 | Other liabilities | 13,410 | ||||||||||||||
Total derivatives designated as hedging instruments | $ | 26,041 | $ | 13,427 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 1,216 | Other current liabilities | $ | 3,267 | ||||||||||||
Schedule of effect of derivative instruments | ' | |||||||||||||||||
The effect of derivative instruments on the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2014 and 2013 was as follows: | ||||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||
(In thousands) | Amount of Gain (Loss) Recognized in Other | Location of Gain | Amount of | Location of Gain | Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portion and Amount | |||||||||||||
Comprehensive | (Loss) Reclassified | Gain (Loss) | (Loss) Recognized in Income on Derivative - Ineffective Portion | Excluded from | ||||||||||||||
Income (“OCI”) on Derivative - | from Accumulated | Reclassified from | and Amount | Effectiveness Testing | ||||||||||||||
Effective Portion | OCI into Income - | Accumulated OCI into Income - | Excluded from | |||||||||||||||
Effective Portion | Effective Portion | Effectiveness Testing | ||||||||||||||||
Three Months Ended March 31, 2014: | ||||||||||||||||||
Foreign currency forward exchange contracts | $ | 11 | Cost of services and products sold | $ | (2 | ) | $ | — | ||||||||||
Cross-currency interest rate swaps | (4,360 | ) | — | Cost of services and products sold | (1,574 | ) | (a) | |||||||||||
$ | (4,349 | ) | $ | (2 | ) | $ | (1,574 | ) | ||||||||||
Three Months Ended March 31, 2013: | ||||||||||||||||||
Foreign currency forward exchange contracts | $ | 5 | Cost of services and products sold | $ | (6 | ) | $ | — | ||||||||||
Cross-currency interest rate swaps | 2,493 | — | Cost of services and products sold | 20,453 | (a) | |||||||||||||
$ | 2,498 | $ | (6 | ) | $ | 20,453 | ||||||||||||
(a) These gains (losses) offset foreign currency fluctuation effects on the debt principal. | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||
Location of Gain | Amount of Gain (Loss) Recognized in | |||||||||||||||||
(Loss) Recognized in | Income on Derivative for the | |||||||||||||||||
Income on Derivative | Three Months Ended March 31 (a) | |||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||||
Foreign currency forward exchange contracts | Cost of services and products sold | $ | 1,556 | $ | 2,059 | |||||||||||||
(a) These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures. | ||||||||||||||||||
Summary of notional amount of foreign currency exchange contracts and cross-currency interest rate swaps | ' | |||||||||||||||||
The following tables summarize, by major currency, the contractual amounts of the Company’s foreign currency forward exchange contracts in U.S. dollars at March 31, 2014 and December 31, 2013. The “Buy” amounts represent the U.S. dollar equivalent of commitments to purchase foreign currencies, and the “Sell” amounts represent the U.S. dollar equivalent of commitments to sell foreign currencies. The recognized gains and losses offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures. | ||||||||||||||||||
Contracted Amounts of Foreign Currency Forward Exchange Contracts Outstanding at March 31, 2014: | ||||||||||||||||||
(In thousands) | Type | U.S. Dollar | Maturity | Recognized | ||||||||||||||
Equivalent | Gain (Loss) | |||||||||||||||||
British pounds sterling | Sell | $ | 27,256 | Apr-14 | $ | (76 | ) | |||||||||||
British pounds sterling | Buy | 10,144 | Apr-14 | 45 | ||||||||||||||
Euros | Sell | 252,913 | April 2014 through July 2014 | 3,258 | ||||||||||||||
Euros | Buy | 243,761 | April 2014 through September 2014 | (2,455 | ) | |||||||||||||
Other currencies | Sell | 16,289 | April 2014 through August 2014 | 52 | ||||||||||||||
Other currencies | Buy | 10,827 | April 2014 through August 2014 | 142 | ||||||||||||||
Total | $ | 561,190 | $ | 966 | ||||||||||||||
Included in the contracted amounts of foreign currency exchange forward contracts outstanding at March 31, 2014 are $125.0 million of foreign currency exchange forward contracts entered into by the Company under the Transition Services Agreement with Brand. The Company has recognized a $0.1 million mark-to-market liability associated with these foreign currency exchange forward contracts. | ||||||||||||||||||
Contracted Amounts of Foreign Currency Forward Exchange Contracts Outstanding at December 31, 2013: | ||||||||||||||||||
(In thousands) | Type | U.S. Dollar | Maturity | Recognized | ||||||||||||||
Equivalent | Gain (Loss) | |||||||||||||||||
British pounds sterling | Sell | $ | 26,931 | Jan-14 | $ | (277 | ) | |||||||||||
British pounds sterling | Buy | 1,976 | Jan-14 | 15 | ||||||||||||||
Euros | Sell | 248,943 | January 2014 through July 2014 | (335 | ) | |||||||||||||
Euros | Buy | 242,385 | January 2014 through March 2014 | (1,335 | ) | |||||||||||||
Other currencies | Sell | 12,708 | January 2014 through July 2014 | (134 | ) | |||||||||||||
Other currencies | Buy | 8,907 | January 2014 through August 2014 | 38 | ||||||||||||||
Total | $ | 541,850 | $ | (2,028 | ) | |||||||||||||
The following table indicates the contractual amounts of the Company's cross-currency interest rate swaps at March 31, 2014: | ||||||||||||||||||
Interest Rates | ||||||||||||||||||
(In millions) | Contractual Amount | Receive | Pay | |||||||||||||||
Maturing 2018 | $ | 250 | Fixed U.S. dollar rate | Fixed euro rate | ||||||||||||||
Maturing 2020 | 220 | Fixed U.S. dollar rate | Fixed British pound sterling rate | |||||||||||||||
Maturing 2016 through 2017 | 10.2 | Floating U.S. dollar rate | Fixed rupee rate | |||||||||||||||
Schedule of fair value of financial instruments | ' | |||||||||||||||||
The following table indicates the fair value hierarchy of the financial instruments of the Company at March 31, 2014 and December 31, 2013: | ||||||||||||||||||
Level 2 Fair Value Measurements | March 31 | December 31 | ||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||||
Assets | ||||||||||||||||||
Foreign currency forward exchange contracts | $ | 3,781 | $ | 1,256 | ||||||||||||||
Cross-currency interest rate swaps | 24,046 | 26,001 | ||||||||||||||||
Liabilities | ||||||||||||||||||
Foreign currency forward exchange contracts | 2,815 | 3,284 | ||||||||||||||||
Cross-currency interest rate swaps | 17,412 | 13,410 | ||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | |||||||||||||||||
The following table reconciles the beginning and ending balances for liabilities measured on a recurring basis using unobservable inputs (Level 3) for three months ended March 31, 2014: | ||||||||||||||||||
Level 3 Liabilities—Unit Adjustment Liability (a) for the Three Months Ended March 31 (b) | 2014 | |||||||||||||||||
(In thousands) | ||||||||||||||||||
Balance at December 31, 2013 | $ | 106,343 | ||||||||||||||||
Payments | (5,580 | ) | ||||||||||||||||
Change in fair value to unit adjustment liability | 2,546 | |||||||||||||||||
Balance at March 31, 2014 | $ | 103,308 | ||||||||||||||||
(a) See Note 5, Equity Method Investments, for additional information related to the unit adjustment liability. | ||||||||||||||||||
(b) Does not total due to rounding. |
Review_of_Operations_by_Segmen1
Review of Operations by Segment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of operations by segment | ' | ||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Revenues From Continuing Operations | |||||||||
Harsco Metals & Minerals | $ | 353,038 | $ | 337,324 | |||||
Harsco Infrastructure | — | 216,059 | |||||||
Harsco Industrial | 102,100 | 90,446 | |||||||
Harsco Rail | 57,561 | 71,566 | |||||||
Total revenues from continuing operations | $ | 512,699 | $ | 715,395 | |||||
Operating Income (Loss) From Continuing Operations | |||||||||
Harsco Metals & Minerals | $ | 23,218 | $ | 23,229 | |||||
Harsco Infrastructure | — | (7,052 | ) | ||||||
Harsco Industrial | 16,571 | 15,609 | |||||||
Harsco Rail | 5,499 | 3,178 | |||||||
Corporate (a) | (12,949 | ) | (9,179 | ) | |||||
Total operating income from continuing operations | $ | 32,339 | $ | 25,785 | |||||
(a) For the three months ended March 31, 2014, Corporate includes a $2.1 million loss on disposal of the Harsco Infrastructure Segment and transaction costs and $1.4 million of net periodic pension cost for defined benefit pension plans retained by the Company as part of the Infrastructure transaction. | |||||||||
Reconciliation of segment operating income to income from continuing operations before income taxes and equity income | ' | ||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Segment operating income | $ | 45,288 | $ | 34,964 | |||||
General Corporate expense | (12,949 | ) | (9,179 | ) | |||||
Operating income from continuing operations | 32,339 | 25,785 | |||||||
Interest income | 297 | 406 | |||||||
Interest expense | (11,421 | ) | (11,743 | ) | |||||
Change in fair value to unit adjustment liability | (2,546 | ) | — | ||||||
Income from continuing operations before income taxes and equity loss | $ | 18,669 | $ | 14,448 | |||||
Other_Income_Tables
Other Income (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Income and Expenses [Abstract] | ' | ||||||||
Schedule of other expenses | ' | ||||||||
This Condensed Consolidated Statements of Operations classification includes costs for employee termination benefit costs, impaired asset write-downs, costs to exit activities and net gains on the disposal of non-core assets. | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Net gains | $ | (2,358 | ) | $ | (3,692 | ) | |||
Other | 1,702 | 2,150 | |||||||
Other income | $ | (656 | ) | $ | (1,542 | ) |
Components_of_Accumulated_Othe1
Components of Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||
The components of Accumulated other comprehensive loss, net of the effect of income taxes, and activity for the three months ended March 31, 2013 and 2014 was as follows: | |||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) - Net of Tax | |||||||||||||||||||||
(In thousands) | Cumulative Foreign Exchange Translation Adjustments | Effective Portion of Derivatives Designated as Hedging Instruments | Cumulative Unrecognized Actuarial Losses on Pension Obligations | Unrealized Loss on Marketable Securities | Total | ||||||||||||||||
Balance at December 31, 2012 | $ | 62,308 | $ | (8,139 | ) | $ | (465,286 | ) | $ | (51 | ) | $ | (411,168 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (12,016 | ) | (a) | 2,055 | (b) | 23,021 | (a) | 8 | 13,068 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 6 | 4,982 | — | 4,988 | ||||||||||||||||
Total other comprehensive income (loss) | (12,016 | ) | 2,061 | 28,003 | 8 | 18,056 | |||||||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | 178 | — | — | — | 178 | ||||||||||||||||
Other comprehensive income (loss) attributable to Harsco Corporation | (11,838 | ) | 2,061 | 28,003 | 8 | 18,234 | |||||||||||||||
Balance at March 31, 2013 | $ | 50,470 | $ | (6,078 | ) | $ | (437,283 | ) | $ | (43 | ) | $ | (392,934 | ) | |||||||
Components of Accumulated Other Comprehensive Income (Loss) - Net of Tax | |||||||||||||||||||||
(In thousands) | Cumulative Foreign Exchange Translation Adjustments | Effective Portion of Derivatives Designated as Hedging Instruments | Cumulative Unrecognized Actuarial Losses on Pension Obligations | Unrealized Loss on Marketable Securities | Total | ||||||||||||||||
Balance at December 31, 2013 | $ | 6,110 | $ | (7,023 | ) | $ | (369,682 | ) | $ | (20 | ) | $ | (370,615 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 1,090 | (a) | (3,964 | ) | (b) | (1,051 | ) | (a) | (5 | ) | (3,930 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 1 | 4,100 | — | 4,101 | ||||||||||||||||
Other comprehensive loss from equity method investee | (913 | ) | — | 632 | — | (281 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss in connection with the Infrastructure transaction | (1,447 | ) | — | — | — | (1,447 | ) | ||||||||||||||
Total other comprehensive income (loss) | (1,270 | ) | (3,963 | ) | 3,681 | (5 | ) | (1,557 | ) | ||||||||||||
Less: Other comprehensive (income) loss attributable to noncontrolling interests | 300 | — | — | — | 300 | ||||||||||||||||
Other comprehensive income (loss) attributable to Harsco Corporation | (970 | ) | (3,963 | ) | 3,681 | (5 | ) | (1,257 | ) | ||||||||||||
Balance at March 31, 2014 | $ | 5,140 | $ | (10,986 | ) | $ | (366,001 | ) | $ | (25 | ) | $ | (371,872 | ) | |||||||
(a) Principally foreign currency fluctuation. | |||||||||||||||||||||
(b) Net change from periodic revaluations. | |||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss are as follows: | |||||||||||||||||||||
(In thousands) | Three Months Ended | Three Months Ended March 31 2013 | Affected Caption in the Condensed Consolidated Statements of Operations | ||||||||||||||||||
31-Mar | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Amortization of defined benefit pension items (a): | |||||||||||||||||||||
Actuarial losses (b) | $ | 2,839 | $ | 3,147 | Selling, general and administrative expenses | ||||||||||||||||
Actuarial losses (b) | 1,552 | 2,266 | Cost of services and products sold | ||||||||||||||||||
Prior-service costs (b) | 23 | 64 | Selling, general and administrative expenses | ||||||||||||||||||
Prior-service costs (b) | 45 | 63 | Cost of services and products sold | ||||||||||||||||||
Total before tax | 4,459 | 5,540 | |||||||||||||||||||
Tax benefit | (359 | ) | (558 | ) | |||||||||||||||||
Total reclassification of defined benefit pension items, net of tax | $ | 4,100 | $ | 4,982 | |||||||||||||||||
Amortization of cash flow hedging instruments (a): | |||||||||||||||||||||
Foreign currency forward exchange contracts | $ | 2 | $ | 6 | Cost of services and products sold | ||||||||||||||||
Tax benefit | (1 | ) | — | ||||||||||||||||||
Total reclassification of cash flow hedging instruments | $ | 1 | $ | 6 | |||||||||||||||||
(a) Amounts in parentheses indicate credits to profit/loss. | |||||||||||||||||||||
(b) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See Note 8, Employee Benefit Plans, for additional details. |
Acquisitions_and_Dispositions_
Acquisitions and Dispositions (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Nov. 26, 2013 | |
Harsco Infrastructure Segment | Harsco Infrastructure Segment | Harsco Infrastructure Segment | Harsco Infrastructure Segment | Harsco Infrastructure Segment | |||
Infrastructure Transaction Strategic Venture [Member] | Infrastructure Transaction Strategic Venture [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Proceeds from the Infrastructure transaction | $3,296,000 | $0 | $300,000,000 | ' | ' | ' | ' |
Percentage of equity interest in the strategic venture entered into as a result of the transaction | ' | ' | ' | ' | ' | 29.00% | 29.00% |
Impairment of long-lived assets recorded as a result of the transaction | 699,000 | 0 | ' | 700,000 | 271,300,000 | ' | ' |
Transaction related expenses | ' | ' | ' | $1,400,000 | ' | ' | ' |
Accounts_Receivable_and_Invent2
Accounts Receivable and Inventories (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Accounts receivable | ' | ' | ' | ||
Trade accounts receivable | $406,267 | ' | $359,819 | ||
Less: Allowance for doubtful accounts | -6,566 | ' | -6,638 | ||
Trade accounts receivable, net | 399,701 | ' | 353,181 | ||
Other receivables | 52,078 | [1] | ' | 46,470 | [1] |
Provision for doubtful accounts related to trade accounts receivable | -19 | 2,217 | ' | ||
Inventories | ' | ' | ' | ||
Finished goods | 22,234 | ' | 23,112 | ||
Work-in-process | 31,044 | ' | 25,623 | ||
Raw materials and purchased parts | 82,627 | ' | 72,118 | ||
Stores and supplies | 30,873 | ' | 34,836 | ||
Inventories | $166,778 | ' | $155,689 | ||
[1] | Other receivables include insurance claim receivables, employee receivables, tax claim receivables and other miscellaneous receivables not included in Trade accounts receivable, net. |
Equity_Method_Investments_Deta
Equity Method Investments (Details) (USD $) | 3 Months Ended | 1 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Nov. 26, 2013 | Mar. 31, 2014 | Nov. 26, 2013 | |
Infrastructure Transaction Strategic Venture [Member] | Infrastructure Transaction Strategic Venture [Member] | Infrastructure Transaction Strategic Venture [Member] | Harsco Infrastructure Segment | Harsco Infrastructure Segment | ||||
Y | Infrastructure Transaction Strategic Venture [Member] | Infrastructure Transaction Strategic Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership in Brand | ' | ' | ' | ' | ' | ' | 29.00% | 29.00% |
Equity Method Investments, Fair Value Disclosure | ' | ' | ' | ' | $298,325,000 | ' | ' | ' |
Total Annual Payments to Acquire Joint Venture, Before Tax | ' | ' | ' | 22,000,000 | ' | ' | ' | ' |
Total Annual Payments to Acquire Joint Venture, After Tax | ' | ' | ' | 15,000,000 | ' | ' | ' | ' |
Equity Method Investment, Transfer of Ownership Interest, Percentage | ' | ' | ' | 2.50% | ' | ' | ' | ' |
Joint Venture, Contingency Threshold, Investee Earnings Before Interest, Tax, Depreciation, and Amortization | ' | ' | ' | 479,000,000 | ' | ' | ' | ' |
Joint Venture, Contingency Threshold, Number of Years After Agreement That Would Terminate Company's Quarterly Payments | ' | ' | ' | ' | ' | 8 | ' | ' |
In Event of an IPO, Minimum Co-Venture Interest in Partnership That Could Terminate Company's Quarterly Payments | ' | ' | ' | ' | ' | 20.00% | ' | ' |
Joint Venture, Liquidation Preference, Value | ' | ' | ' | ' | ' | 336,000,000 | ' | ' |
Due to Related Parties | 103,300,000 | ' | 106,300,000 | ' | ' | ' | ' | ' |
Change in fair value to unit adjustment liability | $2,546,000 | $0 | ' | ' | ' | ' | ' | ' |
Equity_Method_Investments_Deta1
Equity Method Investments (Details 2) (USD $) | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | ||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | ' | ' | ' | |
Current Assets | $728,131,000 | ' | ' | |
Property and equipment , net | 886,305,000 | ' | ' | |
Other noncurrent assets | 1,743,965,000 | ' | ' | |
Total Assets | 3,358,401,000 | ' | ' | |
Equity Method Investment, Summarized Financial Information, Liabilities [Abstract] | ' | ' | ' | |
Short-term borrowing, including current portion of long-term debt | 13,829,000 | ' | ' | |
Other current liabilities | 386,908,000 | ' | ' | |
Long-term debt | 1,756,757,000 | ' | ' | |
Other noncurrent liabilities | 415,840,000 | ' | ' | |
Total Liabilities | 2,573,334,000 | ' | ' | |
Equity Method Investment Summarized Financial Information, Equity [Abstract] | ' | ' | ' | |
Equity | 785,067,000 | ' | ' | |
Total Liabilities and Equity | 3,358,401,000 | ' | ' | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ' | ' | ' | |
Equity Method Investment, Summarized Financial Information, Net Revenue | 236,094,000 | ' | ' | |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 48,832,000 | ' | ' | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | -4,245,000 | ' | ' | |
Equity in loss of unconsolidated entities, net | ' | -1,230,000 | -14,000 | |
Infrastructure Transaction Strategic Venture [Member] | ' | ' | ' | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ' | ' | ' | |
Equity in loss of unconsolidated entities, net | ' | ($1,231,000) | [1] | ' |
[1] | (a) The Company's equity method investment in Brand began on November 26, 2013 and accordingly there is only approximately one month of related equity loss. The results of the Harsco Infrastructure Segment from January 1, 2013 through the date of closing are reported in the Company's results of operations for 2013. |
Equity_Method_Investments_Deta2
Equity Method Investments (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Equity Method Investments and Joint Ventures [Abstract] | ' | ' |
Balances due from Brand | $22,925 | $85,908 |
Balances due to Brand | $43,009 | $149,325 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment | ' | ' |
Gross property, plant and equipment | $2,316,964 | $2,278,614 |
Less: Accumulated depreciation | -1,593,945 | -1,567,268 |
Property, plant and equipment, net | 723,019 | 711,346 |
Land | ' | ' |
Property, Plant and Equipment | ' | ' |
Gross property, plant and equipment | 16,431 | 16,652 |
Land improvements | ' | ' |
Property, Plant and Equipment | ' | ' |
Gross property, plant and equipment | 13,758 | 13,615 |
Buildings and improvements | ' | ' |
Property, Plant and Equipment | ' | ' |
Gross property, plant and equipment | 213,409 | 192,346 |
Machinery and equipment | ' | ' |
Property, Plant and Equipment | ' | ' |
Gross property, plant and equipment | 1,996,779 | 1,969,493 |
Uncompleted construction | ' | ' |
Property, Plant and Equipment | ' | ' |
Gross property, plant and equipment | $76,587 | $86,508 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | |
Changes in carrying amounts of goodwill | ' | |
Balance at December 31, 2013 | $431,265 | |
Goodwill, Other Changes | 7,949 | [1] |
Foreign currency translation | -367 | |
Balance at March 31, 2014 | 438,847 | |
Harsco Metals & Minerals Segment | ' | |
Changes in carrying amounts of goodwill | ' | |
Balance at December 31, 2013 | 421,955 | |
Goodwill, Other Changes | 0 | [1] |
Foreign currency translation | -367 | |
Balance at March 31, 2014 | 421,588 | |
Harsco Rail Segment | ' | |
Changes in carrying amounts of goodwill | ' | |
Balance at December 31, 2013 | 9,310 | |
Goodwill, Other Changes | 0 | [1] |
Foreign currency translation | 0 | |
Balance at March 31, 2014 | 9,310 | |
Harsco Industrial Segment | ' | |
Changes in carrying amounts of goodwill | ' | |
Balance at December 31, 2013 | 0 | |
Goodwill, Other Changes | 7,949 | [1] |
Foreign currency translation | 0 | |
Balance at March 31, 2014 | $7,949 | |
[1] | (a) Changes to goodwill relate to the acquisition of Hammco. See Note 3, Acquisitions and Dispositions. |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Intangible Assets, by category | ' | ' | ' |
Gross Carrying Amount | $213,517 | ' | $196,695 |
Accumulated Amortization | 145,678 | ' | 143,434 |
Amortization expense for intangible assets | 2,553 | 3,948 | ' |
Estimated amortization expense for next 5 years | ' | ' | ' |
2014 | 10,000 | ' | ' |
2015 | 8,500 | ' | ' |
2016 | 8,000 | ' | ' |
2017 | 5,000 | ' | ' |
2018 | 4,750 | ' | ' |
Customer related | ' | ' | ' |
Intangible Assets, by category | ' | ' | ' |
Gross Carrying Amount | 163,901 | ' | 150,307 |
Accumulated Amortization | 112,318 | ' | 110,889 |
Non-compete agreements | ' | ' | ' |
Intangible Assets, by category | ' | ' | ' |
Gross Carrying Amount | 1,126 | ' | 1,126 |
Accumulated Amortization | 1,032 | ' | 1,024 |
Patents | ' | ' | ' |
Intangible Assets, by category | ' | ' | ' |
Gross Carrying Amount | 6,237 | ' | 6,211 |
Accumulated Amortization | 5,344 | ' | 5,273 |
Technology related | ' | ' | ' |
Intangible Assets, by category | ' | ' | ' |
Gross Carrying Amount | 26,957 | ' | 27,185 |
Accumulated Amortization | 19,469 | ' | 18,931 |
Trade names | ' | ' | ' |
Intangible Assets, by category | ' | ' | ' |
Gross Carrying Amount | 7,667 | ' | 4,113 |
Accumulated Amortization | 3,159 | ' | 2,969 |
Other | ' | ' | ' |
Intangible Assets, by category | ' | ' | ' |
Gross Carrying Amount | 7,629 | ' | 7,753 |
Accumulated Amortization | $4,356 | ' | $4,348 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Defined benefit plans: | ' | ' |
Multiemployer pension plans | $701,000 | $2,816,000 |
Defined contribution pension plans | 4,069,000 | 4,828,000 |
U. S. Plans | ' | ' |
Defined benefit plans: | ' | ' |
Service cost | 558,000 | 641,000 |
Interest cost | 3,217,000 | 2,941,000 |
Expected return on plan assets | -4,196,000 | -3,909,000 |
Recognized prior service costs | 22,000 | 35,000 |
Recognized loss | 838,000 | 1,263,000 |
Defined benefit plans net periodic pension cost | 439,000 | 971,000 |
Defined benefit pension plan | 566,000 | 483,000 |
Anticipated contributions to defined benefit pension plans during the remainder of the fiscal year | 9,200,000 | ' |
International Plans | ' | ' |
Defined benefit plans: | ' | ' |
Service cost | 407,000 | 909,000 |
Interest cost | 10,912,000 | 10,781,000 |
Expected return on plan assets | -12,588,000 | -11,819,000 |
Recognized prior service costs | 46,000 | 92,000 |
Recognized loss | 3,553,000 | 4,150,000 |
Defined benefit plans net periodic pension cost | 2,330,000 | 4,113,000 |
Defined benefit pension plan | 17,421,000 | 17,559,000 |
Anticipated contributions to defined benefit pension plans during the remainder of the fiscal year | $13,300,000 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Effective income tax rate (as a percent) | 24.10% | 34.40% |
Unrecognized income tax benefits including interest and penalties | $20.10 | ' |
Portion of unrecognized income tax benefits, expected to be recognized upon settlement of tax examinations and the expiration of various statutes of limitations within next twelve months | $1.30 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Aug. 31, 2005 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Environmental | Environmental | Environmental | Other | Other | Other | Sao Paulo State Revenue Authority | Sao Paulo State Revenue Authority | New York County as managed by the New York Supreme Court | Active or In Extremis docket | Active or In Extremis docket | |
case | Minimum | Maximum | Brazilian Tax Disputes - Jan 2002 through Dec 2003 | Brazilian Tax Disputes - Jan 2004 through May 2005 | Other | Other than New York State | New York County as managed by the New York Supreme Court | ||||
defendants | case | Other | Other | ||||||||
claim | case | case | |||||||||
Commitments and Contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accruals for environmental matters | $1.30 | ' | $1.20 | ' | ' | ' | ' | ' | ' | ' | ' |
Charges related to environmental matters | 0.7 | 0.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate number of defendants that includes the company named in legal actions | ' | ' | ' | 90 | ' | ' | ' | ' | ' | ' | ' |
Amount of damages sought | ' | ' | ' | ' | 20 | 25 | 11 | ' | ' | ' | ' |
Damages sought - principal | ' | ' | ' | ' | ' | ' | 2.5 | 3 | ' | ' | ' |
Damages sought - interest, penalties and fees | ' | ' | ' | ' | ' | ' | $8.50 | $28 | ' | ' | ' |
Number of pending claims | ' | ' | ' | 17,515 | ' | ' | ' | ' | 17,129 | 386 | 218 |
Number of claims dismissed to date by stipulation or summary judgment prior to trial | ' | ' | ' | 27,307 | ' | ' | ' | ' | ' | ' | ' |
Reconciliation_of_Basic_and_Di2
Reconciliation of Basic and Diluted Shares Reconciliation of Basic and Diluted Shares (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Income from continuing operations, net of tax | $11,542 | $7,642 |
Weighted-average shares outstanding - basic | 80,816 | 80,706 |
Dilutive effect of stock-based compensation | 206 | 224 |
Weighted-average shares outstanding - diluted | 81,022 | 80,930 |
Earnings (loss) from continuing operations per common share, attributable to Harsco Corporation common stockholders: | ' | ' |
Basic | $0.14 | $0.09 |
Diluted | $0.14 | $0.09 |
Reconciliation_of_Basic_and_Di3
Reconciliation of Basic and Diluted Shares (Details 2) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stock options | ' | ' |
Antidilutive securities | ' | ' |
Number of securities not included in computation of diluted earnings per share (in shares) | 215 | 304 |
Stock appreciation rights | ' | ' |
Antidilutive securities | ' | ' |
Number of securities not included in computation of diluted earnings per share (in shares) | 15 | 0 |
Derivative_Instruments_Hedging2
Derivative Instruments, Hedging Activities and Fair Value (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | ||
Minimum | Maximum | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Cross currency interest rate swaps | Cross currency interest rate swaps | Cross currency interest rate swaps | Cross currency interest rate swaps | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | ||||
Other current assets | Other current assets | Other current liabilities | Other current liabilities | Other assets | Other assets | Noncurrent liabilities | Noncurrent liabilities | Other current assets | Other current assets | Other current liabilities | Other current liabilities | ||||||
Derivative contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period over which gains and losses are reclassified to earnings | ' | ' | ' | '10 years | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives subject to enforceable master netting arrangements, net liability | ($100,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Derivatives | ' | 24,098,000 | 26,041,000 | ' | ' | 52,000 | 40,000 | ' | ' | 24,046,000 | 26,001,000 | ' | ' | 3,729,000 | 1,216,000 | ' | ' |
Liability Derivatives | ' | $17,457,000 | $13,427,000 | ' | ' | ' | ' | $45,000 | $17,000 | ' | ' | $17,412,000 | $13,410,000 | ' | ' | $2,770,000 | $3,267,000 |
Derivative_Instruments_Hedging3
Derivative Instruments, Hedging Activities and Fair Value (Details 2) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Effect of derivative instruments | ' | ' | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative - Effective Portion | ($4,349) | $2,498 | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income - Effective Portion | -2 | -6 | ||
Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portion and Amount Excluded from Effectiveness Testing | -1,574 | 20,453 | ||
Foreign currency forward exchange contracts | ' | ' | ||
Effect of derivative instruments | ' | ' | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative - Effective Portion | 11 | 5 | ||
Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 | ||
Foreign currency forward exchange contracts | Cost of services and products sold | ' | ' | ||
Effect of derivative instruments | ' | ' | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income - Effective Portion | -2 | -6 | ||
Derivatives Not Designated as Hedging Instruments | ' | ' | ||
Amount of Gain (Loss) Recognized in Income on Derivative | 1,556 | [1] | 2,059 | [1] |
Cross currency interest rate swaps | ' | ' | ||
Effect of derivative instruments | ' | ' | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative - Effective Portion | -4,360 | 2,493 | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income - Effective Portion | 0 | 0 | ||
Cross currency interest rate swaps | Cost of services and products sold | ' | ' | ||
Effect of derivative instruments | ' | ' | ||
Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portion and Amount Excluded from Effectiveness Testing | ($1,574) | [2] | $20,453 | [2] |
[1] | These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposur | |||
[2] | These gains (losses) offset foreign currency fluctuation effects on the debt principal. |
Derivative_Instruments_Hedging4
Derivative Instruments, Hedging Activities and Fair Value (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | |
Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | Affiliated Entity [Member] | Affiliated Entity [Member] | |||
British pounds sterling | British pounds sterling | British pounds sterling | British pounds sterling | Euros | Euros | Euros | Euros | Other currencies | Other currencies | Other currencies | Other currencies | Foreign currency forward exchange contracts | Foreign currency forward exchange contracts | |||||
Sell | Sell | Buy | Buy | Sell | Sell | Buy | Buy | Sell | Sell | Buy | Buy | |||||||
Foreign Currency Derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. Dollar Equivalent | ' | ' | $561,190,000 | $541,850,000 | $27,256,000 | $26,931,000 | $10,144,000 | $1,976,000 | $252,913,000 | $248,943,000 | $243,761,000 | $242,385,000 | $16,289,000 | $12,708,000 | $10,827,000 | $8,907,000 | $121,200,000 | $125,000,000 |
Recognized Gain (Loss) | ' | ' | 966,000 | -2,028,000 | -76,000 | -277,000 | 45,000 | 15,000 | 3,258,000 | -335,000 | -2,455,000 | -1,335,000 | 52,000 | -134,000 | 142,000 | 38,000 | 700,000 | 100,000 |
Pre-tax net gains (losses) on certain loans designated as hedges of net investments in foreign subsidiaries | $200,000 | $1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_Hedging5
Derivative Instruments, Hedging Activities and Fair Value (Details 4) (Designated as hedging instrument, USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Cross Currency Interest Rate Swap Maturing 2018 [Member] | ' |
Derivatives Designated as Hedging Instruments | ' |
Contractual Amount | $250,000 |
Cross Currency Interest Rate Swap Maturing 2020 [Member] | ' |
Derivatives Designated as Hedging Instruments | ' |
Contractual Amount | 220,000 |
Cross Currency Interest Rate Swap Maturing 2016 through 2017 [Member] | ' |
Derivatives Designated as Hedging Instruments | ' |
Contractual Amount | $10,200 |
Derivative_Instruments_Hedging6
Derivative Instruments, Hedging Activities and Fair Value (Details 5) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | |
Fair value measurements recurring | Level 2 | ' | ' | |
Assets | ' | ' | |
Foreign currency forward exchange contracts | $3,781 | $1,256 | |
Cross-currency interest rate swaps | 24,046 | 26,001 | |
Liabilities | ' | ' | |
Foreign currency forward exchange contracts | 2,815 | 3,284 | |
Cross-currency interest rate swaps | 17,412 | 13,410 | |
Unit Adjustment Liability, Infrastructure Transaction [Member] | ' | ' | |
Fair value of financial instruments | ' | ' | |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 103,308 | [1] | 106,343 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | -5,580 | ' | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Accretion Expense | $2,546 | [2] | ' |
[1] | Does not total due to rounding. | ||
[2] | See Note 5, Equity Method Investments, for additional information related to the unit adjustment liability. |
Derivative_Instruments_Hedging7
Derivative Instruments, Hedging Activities and Fair Value (Details 6) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Long-term debt, including current maturities | ' | ' |
Fair value of long-term debt | $893,100,000 | $832,600,000 |
Carrying value of long-term debt | $855,900,000 | $803,400,000 |
Review_of_Operations_by_Segmen2
Review of Operations by Segment (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | |||
Operations by segment | ' | ' | ||
Loss on disposal of the Harsco Infrastructure Segment and transaction costs | $2,138,000 | $0 | ||
Revenues from continuing operations | 512,699,000 | 715,395,000 | ||
Operating income from continuing operations | 32,339,000 | 25,785,000 | ||
Interest income | 297,000 | 406,000 | ||
Interest expense | -11,421,000 | -11,743,000 | ||
Change in fair value to unit adjustment liability | -2,546,000 | 0 | ||
Income from continuing operations before income taxes and equity loss | 18,669,000 | 14,448,000 | ||
Total reportable segments | ' | ' | ||
Operations by segment | ' | ' | ||
Operating income from continuing operations | 45,288,000 | 34,964,000 | ||
Harsco Metals & Minerals Segment | ' | ' | ||
Operations by segment | ' | ' | ||
Revenues from continuing operations | 353,038,000 | 337,324,000 | ||
Operating income from continuing operations | 23,218,000 | 23,229,000 | ||
Harsco Infrastructure Segment | ' | ' | ||
Operations by segment | ' | ' | ||
Revenues from continuing operations | 0 | 216,059,000 | ||
Operating income from continuing operations | 0 | -7,052,000 | ||
Harsco Rail Segment | ' | ' | ||
Operations by segment | ' | ' | ||
Revenues from continuing operations | 57,561,000 | 71,566,000 | ||
Operating income from continuing operations | 5,499,000 | 3,178,000 | ||
Harsco Industrial Segment | ' | ' | ||
Operations by segment | ' | ' | ||
Revenues from continuing operations | 102,100,000 | 90,446,000 | ||
Operating income from continuing operations | 16,571,000 | 15,609,000 | ||
Corporate [Member] | ' | ' | ||
Operations by segment | ' | ' | ||
Operating income from continuing operations | -12,949,000 | [1] | -9,179,000 | [1] |
Pension Expense | $1,400,000 | ' | ||
[1] | (a) For the three months ended March 31, 2014, Corporate includes a $2.1 million loss on disposal of the Harsco Infrastructure Segment and transaction costs and $1.4 million of net periodic pension cost for defined benefit pension plans retained by the Company as part of the Infrastructure transaction. |
Other_Income_Details
Other Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Income and Expenses [Abstract] | ' | ' |
Net gains | ($2,358) | ($3,692) |
Other | 1,702 | 2,150 |
Other (income) expenses | ($656) | ($1,542) |
Components_of_Accumulated_Othe2
Components of Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ||
Beginning balance | ($370,615) | ($411,168) | ||
Other comprehensive income (loss) before reclassifications | -3,930 | 13,068 | ||
Amounts reclassified from accumulated other comprehensive loss | 4,101 | 4,988 | ||
Reclassification From Accumulated Other Comprehensive Income, Net of Tax, Equity Method Investee | -281 | ' | ||
Reclassification From Accumulated Other Comprehensive Income, Current Period, Net Of Tax, Amounts Related To Asset Impairment Loss Recognized in Acquisitions and Dispositions | -1,447 | ' | ||
Total other comprehensive income (loss) | -1,557 | 18,056 | ||
Less: Other Comprehensive loss attributable to noncontrolling interests | 300 | 178 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | -1,257 | 18,234 | ||
Ending balance | -371,872 | -392,934 | ||
Cumulative Foreign Exchange Translation Adjustments | ' | ' | ||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ||
Beginning balance | 6,110 | 62,308 | ||
Other comprehensive income (loss) before reclassifications | 1,090 | [1] | -12,016 | [1] |
Reclassification From Accumulated Other Comprehensive Income, Current Period, Net Of Tax, Excluding Amounts Related To Asset Impairment Loss Recognized in Acquisitions and Dispositions | 0 | 0 | ||
Reclassification From Accumulated Other Comprehensive Income, Net of Tax, Equity Method Investee | -913 | ' | ||
Reclassification From Accumulated Other Comprehensive Income, Current Period, Net Of Tax, Amounts Related To Asset Impairment Loss Recognized in Acquisitions and Dispositions | -1,447 | ' | ||
Total other comprehensive income (loss) | -1,270 | -12,016 | ||
Less: Other Comprehensive loss attributable to noncontrolling interests | 300 | 178 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | -970 | -11,838 | ||
Ending balance | 5,140 | 50,470 | ||
Effective Portion of Deriviatives Designated as Hedging Instruments | ' | ' | ||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ||
Beginning balance | -7,023 | -8,139 | ||
Other comprehensive income (loss) before reclassifications | -3,964 | [2] | 2,055 | [2] |
Reclassification From Accumulated Other Comprehensive Income, Current Period, Net Of Tax, Excluding Amounts Related To Asset Impairment Loss Recognized in Acquisitions and Dispositions | 1 | 6 | ||
Reclassification From Accumulated Other Comprehensive Income, Net of Tax, Equity Method Investee | 0 | ' | ||
Reclassification From Accumulated Other Comprehensive Income, Current Period, Net Of Tax, Amounts Related To Asset Impairment Loss Recognized in Acquisitions and Dispositions | 0 | ' | ||
Total other comprehensive income (loss) | -3,963 | 2,061 | ||
Less: Other Comprehensive loss attributable to noncontrolling interests | 0 | 0 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | -3,963 | 2,061 | ||
Ending balance | -10,986 | -6,078 | ||
Cumulative Unrecognized Actuarial Losses on Pension Obligations | ' | ' | ||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ||
Beginning balance | -369,682 | -465,286 | ||
Other comprehensive income (loss) before reclassifications | -1,051 | [1] | 23,021 | [1] |
Reclassification From Accumulated Other Comprehensive Income, Current Period, Net Of Tax, Excluding Amounts Related To Asset Impairment Loss Recognized in Acquisitions and Dispositions | 4,100 | 4,982 | ||
Reclassification From Accumulated Other Comprehensive Income, Net of Tax, Equity Method Investee | 632 | ' | ||
Reclassification From Accumulated Other Comprehensive Income, Current Period, Net Of Tax, Amounts Related To Asset Impairment Loss Recognized in Acquisitions and Dispositions | 0 | ' | ||
Total other comprehensive income (loss) | 3,681 | 28,003 | ||
Less: Other Comprehensive loss attributable to noncontrolling interests | 0 | 0 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | 3,681 | 28,003 | ||
Ending balance | -366,001 | -437,283 | ||
Unrealized Loss on Marketable Securities | ' | ' | ||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ||
Beginning balance | -20 | -51 | ||
Other comprehensive income (loss) before reclassifications | -5 | 8 | ||
Reclassification From Accumulated Other Comprehensive Income, Current Period, Net Of Tax, Excluding Amounts Related To Asset Impairment Loss Recognized in Acquisitions and Dispositions | 0 | 0 | ||
Reclassification From Accumulated Other Comprehensive Income, Net of Tax, Equity Method Investee | 0 | ' | ||
Reclassification From Accumulated Other Comprehensive Income, Current Period, Net Of Tax, Amounts Related To Asset Impairment Loss Recognized in Acquisitions and Dispositions | 0 | ' | ||
Total other comprehensive income (loss) | -5 | 8 | ||
Less: Other Comprehensive loss attributable to noncontrolling interests | 0 | 0 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | -5 | 8 | ||
Ending balance | ($25) | ($43) | ||
[1] | Principally foreign currency fluctuation. | |||
[2] | Net change from periodic revaluations. |
Components_of_Accumulated_Othe3
Components of Accumulated Other Comprehensive Loss Reclassifications (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Selling, general and administrative expenses | $66,794 | $124,698 | ||
Income from continuing operations before income taxes and equity loss | 18,669 | 14,448 | ||
Tax benefit | 4,495 | 4,965 | ||
Net income | 12,541 | 9,072 | ||
Amount Reclassified from Accumulated Other Comprehensive Loss | Cumulative Unrecognized Actuarial Losses on Pension Obligations | ' | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Income from continuing operations before income taxes and equity loss | 4,459 | [1] | 5,540 | [1] |
Tax benefit | -359 | [1] | -558 | [1] |
Net income | 4,100 | [1] | 4,982 | [1] |
Amount Reclassified from Accumulated Other Comprehensive Loss | Actuarial losses | ' | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Selling, general and administrative expenses | 2,839 | [1],[2] | 3,147 | [1],[2] |
Cost of services and products sold | 1,552 | [1],[2] | 2,266 | [1],[2] |
Amount Reclassified from Accumulated Other Comprehensive Loss | Prior service costs | ' | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Selling, general and administrative expenses | 23 | [1],[2] | 64 | [1],[2] |
Cost of services and products sold | 45 | [1],[2] | 63 | [1],[2] |
Amount Reclassified from Accumulated Other Comprehensive Loss | Effective Portion of Deriviatives Designated as Hedging Instruments | ' | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Cost of services and products sold | 2 | [1] | 6 | [1] |
Tax benefit | -1 | [1] | 0 | [1] |
Net income | $1 | [1] | $6 | [1] |
[1] | (a) Amounts in parentheses indicate credits to profit/loss | |||
[2] | (b) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See Note 8, Employee Benefit Plans, for additional details. |
Restructuring_Programs_Details
Restructuring Programs (Details) (Restructuring Program 2011 and 2012, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restructuring Program 2011 and 2012 | ' | ' |
Restructuring accrual related activity | ' | ' |
Accrual, balance at the beginning of the period | $4,559 | $5,087 |
Remaining Accrual, balance at the end of the period | $4,559 | $5,087 |