Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | HARSCO CORP | |
Entity Central Index Key | 45876 | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 80,087,180 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $66,549 | $62,843 | ||
Trade accounts receivable, net | 332,005 | 325,104 | ||
Other receivables | 21,709 | [1] | 28,145 | [1] |
Inventories | 194,598 | 178,922 | ||
Assets held-for-sale | 1,328 | 1,355 | ||
Other current assets | 85,860 | 87,110 | ||
Total current assets | 702,049 | 683,479 | ||
Investments | 284,693 | 288,505 | ||
Property, plant and equipment, net | 623,364 | 663,244 | ||
Goodwill | 402,754 | 416,155 | ||
Intangible assets, net | 58,385 | 58,524 | ||
Other assets | 192,138 | 159,320 | ||
Total assets | 2,263,383 | 2,269,227 | ||
Current liabilities: | ||||
Short-term borrowings | 18,643 | 16,748 | ||
Current maturities of long-term debt | 24,899 | 25,188 | ||
Accounts payable | 143,823 | 146,506 | ||
Accrued compensation | 41,824 | 53,780 | ||
Income taxes payable | 6,732 | 1,985 | ||
Dividends payable | 16,418 | 16,535 | ||
Insurance liabilities | 12,192 | 12,415 | ||
Advances on contracts | 116,514 | 117,398 | ||
Due to unconsolidated affiliate | 8,317 | 8,142 | ||
Unit adjustment liability | 22,320 | 22,320 | ||
Other current liabilities | 145,356 | 144,543 | ||
Total current liabilities | 557,038 | 565,560 | ||
Long-term debt | 875,277 | 829,709 | ||
Deferred income taxes | 7,164 | 6,379 | ||
Insurance liabilities | 35,837 | 35,470 | ||
Retirement plan liabilities | 316,948 | 350,889 | ||
Due to unconsolidated affiliate | 20,469 | 20,169 | ||
Unit adjustment liability | 68,107 | 71,442 | ||
Other liabilities | 34,722 | 37,699 | ||
Total liabilities | 1,915,562 | 1,917,317 | ||
COMMITMENTS AND CONTINGENCIES | ||||
HARSCO CORPORATION STOCKHOLDERS’ EQUITY | ||||
Preferred stock | 0 | 0 | ||
Common stock | 140,489 | 140,444 | ||
Additional paid-in capital | 166,346 | 165,666 | ||
Accumulated other comprehensive loss | -527,475 | -532,256 | ||
Retained earnings | 1,282,465 | 1,283,549 | ||
Treasury stock | -760,227 | -749,815 | ||
Total Harsco Corporation stockholders’ equity | 301,598 | 307,588 | ||
Noncontrolling interests | 46,223 | 44,322 | ||
Total equity | 347,821 | 351,910 | ||
Total liabilities and equity | $2,263,383 | $2,269,227 | ||
[1] | Other receivables include insurance claim receivables, employee receivables, tax claim receivables, receivables from affiliates and other miscellaneous receivables not included in Trade accounts receivable, net. |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues from continuing operations: | ||
Service revenues | $287,428 | $350,794 |
Product revenues | 164,151 | 161,689 |
Total revenues | 451,579 | 512,483 |
Costs and expenses from continuing operations: | ||
Cost of services sold | 245,861 | 294,308 |
Cost of products sold | 115,221 | 115,466 |
Selling, general and administrative expenses | 63,902 | 66,794 |
Research and development expenses | 919 | 2,663 |
Loss on disposal of the Harsco Infrastructure Segment and transaction costs | 0 | 1,681 |
Other income | -13,205 | -656 |
Total costs and expenses | 412,698 | 480,256 |
Operating income from continuing operations | 38,881 | 32,227 |
Interest income | 256 | 297 |
Interest expense | -11,884 | -11,421 |
Change in fair value to the unit adjustment liability | -2,245 | -2,546 |
Income from continuing operations before income taxes and equity income | 25,008 | 18,557 |
Income tax expense | -12,855 | -5,311 |
Equity in income (loss) of unconsolidated entities, net | 4,083 | -1,230 |
Income from continuing operations | 16,236 | 12,016 |
Discontinued operations: | ||
Loss on disposal of discontinued business | -646 | -640 |
Income tax benefit related to discontinued business | 239 | 237 |
Loss from discontinued operations | -407 | -403 |
Net income | 15,829 | 11,613 |
Less: Net income attributable to noncontrolling interests | -565 | -1,402 |
Net income attributable to Harsco Corporation | 15,264 | 10,211 |
Amounts attributable to Harsco Corporation common stockholders: | ||
Income from continuing operations, net of tax | 15,671 | 10,614 |
Loss from discontinued operations | -407 | -403 |
Net income attributable to Harsco Corporation | $15,264 | $10,211 |
Weighted-average shares of common stock outstanding (in shares) | 80,240 | 80,816 |
Basic earnings (loss) per common share attributable to Harsco Corporation common stockholders: | ||
Continuing operations (in dollars per share) | $0.20 | $0.13 |
Discontinued operations (in dollars per share) | ($0.01) | $0 |
Basic earnings per share attributable to Harsco Corporation common stockholders (in dollars per share) | $0.19 | $0.13 |
Diluted weighted-average shares of common stock outstanding (in shares) | 80,352 | 81,022 |
Diluted earnings (loss) per common share attributable to Harsco Corporation common stockholders: | ||
Continuing operations (in dollars per share) | $0.20 | $0.13 |
Discontinued operations (in dollars per share) | ($0.01) | $0 |
Diluted earnings per share attributable to Harsco Corporation common stockholders (in dollars per share) | $0.19 | $0.13 |
Cash dividends declared per common share (in dollars per share) | $0.21 | $0.21 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income (loss) | $15,829 | $11,613 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, net of deferred income taxes of $(1,650) and $(101) in 2015 and 2014, respectively | -28,842 | -1,270 |
Net gain (loss) on cash flow hedging instruments, net of deferred income taxes of $(1,522) and $386 in 2015 and 2014, respectively | 7,574 | -3,963 |
Pension liability adjustments, net of deferred income taxes of $(3,091) and $(406) in 2015 and 2014, respectively | 25,293 | 3,681 |
Unrealized loss on marketable securities, net of deferred income taxes of $4 and $3 in 2015 and 2014, respectively | -8 | -5 |
Total other comprehensive income (loss) | 4,017 | -1,557 |
Total comprehensive income (loss) | 19,846 | 10,056 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 199 | -1,102 |
Comprehensive income (loss) attributable to Harsco Corporation | $20,045 | $8,954 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Foreign currency translation adjustments, deferred income taxes | ($1,650) | ($101) |
Net gain (loss) on cash flow hedging instruments, deferred income taxes | -1,522 | 386 |
Pension liability adjustments, deferred income taxes | -3,091 | -406 |
Unrealized gain on marketable securities, deferred income taxes | $4 | $3 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | $15,829 | $11,613 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 36,654 | 41,834 |
Amortization | 3,237 | 3,001 |
Change in fair value to the unit adjustment liability | 2,245 | 2,546 |
Deferred income tax expense | 2,526 | 2,352 |
Equity in (income) loss of unconsolidated entities, net | -4,083 | 1,230 |
Loss on disposal of Harsco Infrastructure Segment | 0 | 242 |
Other, net | -9,612 | -750 |
Changes in assets and liabilities: | ||
Accounts receivable | -20,151 | -49,455 |
Inventories | -19,496 | -4,273 |
Accounts payable | 5,775 | -6,246 |
Accrued interest payable | 6,828 | 8,207 |
Accrued compensation | -9,019 | -3,586 |
Advances on contracts | 8,693 | 34,006 |
Harsco 2011/2012 Restructuring Program accrual | -188 | -528 |
Other assets and liabilities | -8,765 | -12,709 |
Net cash provided by operating activities | 10,473 | 27,484 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | -31,630 | -39,839 |
Proceeds from the Infrastructure Transaction | 0 | 3,296 |
Proceeds from sales of assets | 6,781 | 3,806 |
Purchases of businesses, net of cash acquired | -6,828 | -26,046 |
Payment of unit adjustment liability | -5,580 | -5,580 |
Other investing activities, net | 2,360 | -1,178 |
Net cash used by investing activities | -34,897 | -65,541 |
Cash flows from financing activities: | ||
Short-term borrowings, net | 4,898 | -1,721 |
Current maturities and long-term debt: | ||
Additions | 52,039 | 65,000 |
Reductions | -5,147 | -18,424 |
Cash dividends paid on common stock | -16,443 | -16,562 |
Common stock acquired for treasury | -12,143 | 0 |
Other financing activities, net | -2,049 | 0 |
Net cash provided by financing activities | 21,155 | 28,293 |
Effect of exchange rate changes on cash | 6,975 | -479 |
Net increase (decrease) in cash and cash equivalents | 3,706 | -10,243 |
Cash and cash equivalents at beginning of period | 62,843 | 93,605 |
Cash and cash equivalents at end of period | $66,549 | $83,362 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (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, 2013 | $597,555 | $140,248 | ($746,237) | $159,025 | $1,372,041 | ($370,615) | $43,093 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 11,613 | 10,211 | 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 $(6,259) and $(118) in 2015 and 2014, respectively | -1,557 | -1,257 | -300 | ||||
Contributions from noncontrolling interests | 1,560 | 1,560 | |||||
Noncontrolling interests transferred in the Infrastructure Transaction | -905 | -905 | |||||
Vesting of restricted stock units and other, net 23,962 shares and 39,941 shares in 2015 and 2014, 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 | 593,070 | 140,327 | -746,830 | 161,048 | 1,365,680 | -371,872 | 44,717 |
Balances at Dec. 31, 2014 | 351,910 | 140,444 | -749,815 | 165,666 | 1,283,549 | -532,256 | 44,322 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 15,829 | 15,264 | 565 | ||||
Cash dividends declared: | |||||||
Common @ $0.205 per share | -16,348 | -16,348 | |||||
Other comprehensive income, net of deferred income taxes of $(6,259) and $(118) in 2015 and 2014, respectively | 4,017 | 4,781 | -764 | ||||
Contributions from noncontrolling interests | 2,100 | 2,100 | |||||
Vesting of restricted stock units and other, net 23,962 shares and 39,941 shares in 2015 and 2014, respectively | -228 | 45 | -192 | -81 | |||
Treasury shares repurchased, 596,632 shares | -10,220 | -10,220 | |||||
Amortization of unearned portion of stock-based compensation, net of forfeitures | 761 | 761 | |||||
Balances at Mar. 31, 2015 | $347,821 | $140,489 | ($760,227) | $166,346 | $1,282,465 | ($527,475) | $46,223 |
CONDENSED_CONSOLIDATED_STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash dividends declared per common share (in dollars per share) | $0.21 | $0.21 |
Other Comprehensive Income (Loss), Tax | ($6,259) | ($118) |
Treasury shares repurchased (in shares) | 596,632 | |
Vesting of restricted stock units and other (in shares) | 23,962 | 39,941 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
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, 2014 Condensed Consolidated Balance Sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2014 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, 2014. | |
Operating results and cash flows for the three months ended March 31, 2015 are not indicative of the results that may be expected for the year ending December 31, 2015. |
Revised_Financial_Statements
Revised Financial Statements | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||
Revised Financial Statements | Revised Financial Statements | ||||||||||||
During the first quarter of 2015, the Company identified an error that would have had the net effect of decreasing after-tax income by $7.5 million, related to an unasserted multiemployer pension plan withdrawal liability that should have been recorded by the Company in the fourth quarter of 2012. The Company became aware of a potential withdrawal liability during the first quarter of 2015 and followed the Company's standard procedure of engaging outside experts to determine the amount of potential liability. Based on these procedures, the Company determined it had triggered a partial withdrawal during the fourth quarter of 2012 due to a decrease in hours worked by the Company's employees who participate in the plan and that such amount should have been accrued in that period. The Company assessed the individual and aggregate impact of this error on the current year and all prior periods and determined that the cumulative effect of this error was material to both the first quarter and expected full-year 2015 results, but did not result in a material misstatement to any previously issued annual or quarterly financial statements. Accordingly, the Company is revising the relevant financial statements for all applicable periods and will revise additional financial statements as they appear in future filings. | |||||||||||||
In connection with the revision, the Company additionally corrected all previously disclosed immaterial out-of-period adjustments, including tax adjustments. The impact of revising the Company’s Condensed Consolidated Balance Sheets, Condensed Statements of Operations and Condensed Consolidated Statements of Cash Flows for all period presented are as follows: | |||||||||||||
December 31, 2014 | |||||||||||||
(In thousands) | As Previously Reported | Revision | As Revised | ||||||||||
ASSETS | |||||||||||||
Inventories | $ | 177,265 | $ | 1,657 | $ | 178,922 | |||||||
Total current assets | 681,822 | 1,657 | 683,479 | ||||||||||
Other assets | 155,551 | 3,769 | 159,320 | ||||||||||
Total assets | 2,263,801 | 5,426 | 2,269,227 | ||||||||||
LIABILITIES | |||||||||||||
Other liabilities | $ | 25,849 | $ | 11,850 | $ | 37,699 | |||||||
Total liabilities | 1,905,467 | 11,850 | 1,917,317 | ||||||||||
HARSCO CORPORATION STOCKHOLDERS’ EQUITY | |||||||||||||
Accumulated other comprehensive loss | $ | (532,491 | ) | $ | 235 | $ | (532,256 | ) | |||||
Retained earnings | 1,290,208 | (6,659 | ) | 1,283,549 | |||||||||
Total Harsco Corporation stockholders’ equity | 314,012 | (6,424 | ) | 307,588 | |||||||||
Total equity | 358,334 | (6,424 | ) | 351,910 | |||||||||
Total liabilities and equity | 2,263,801 | 5,426 | 2,269,227 | ||||||||||
Three Months Ended | |||||||||||||
31-Mar-14 | |||||||||||||
(In thousands, except per share amounts) | As Previously Reported | Revision | As Revised | ||||||||||
Revenues from continuing operations: | |||||||||||||
Service revenues | $ | 351,010 | $ | (216 | ) | $ | 350,794 | ||||||
Total revenues | 512,699 | (216 | ) | 512,483 | |||||||||
Costs and expenses from continuing operations: | |||||||||||||
Cost of services sold | $ | 293,999 | $ | 309 | $ | 294,308 | |||||||
Research and development expenses | 2,619 | 44 | 2,663 | ||||||||||
Loss on disposal of the Harsco Infrastructure Segment and transaction costs | 2,138 | (457 | ) | 1,681 | |||||||||
Total costs and expenses | 480,360 | (104 | ) | 480,256 | |||||||||
Operating income from continuing operations | $ | 32,339 | $ | (112 | ) | $ | 32,227 | ||||||
Income from continuing operations before income taxes and equity income | 18,669 | (112 | ) | 18,557 | |||||||||
Income tax expense | (4,495 | ) | (816 | ) | (5,311 | ) | |||||||
Income from continuing operations | 12,944 | (928 | ) | 12,016 | |||||||||
Net income | 12,541 | (928 | ) | 11,613 | |||||||||
Net income attributable to Harsco Corporation | 11,139 | (928 | ) | 10,211 | |||||||||
Amounts attributable to Harsco Corporation common stockholders: | |||||||||||||
Income from continuing operations, net of tax | $ | 11,542 | $ | (928 | ) | $ | 10,614 | ||||||
Net income attributable to Harsco Corporation common stockholders | 11,139 | (928 | ) | 10,211 | |||||||||
Basic earnings (loss) per common share attributable to Harsco Corporation common stockholders: | |||||||||||||
Continuing operations | $ | 0.14 | $ | (0.01 | ) | $ | 0.13 | ||||||
Basic earnings per share attributable to Harsco Corporation common stockholders | 0.14 | (0.01 | ) | 0.13 | |||||||||
Diluted earnings (loss) per common share attributable to Harsco Corporation common stockholders: | |||||||||||||
Continuing operations | $ | 0.14 | $ | (0.01 | ) | $ | 0.13 | ||||||
Diluted earnings per share attributable to Harsco Corporation common stockholders | 0.14 | (0.01 | ) | 0.13 | |||||||||
Three Months Ended | |||||||||||||
31-Mar-14 | |||||||||||||
(In thousands) | As Previously Reported | Revision | As Revised | ||||||||||
Net cash provided (used) by: | |||||||||||||
Operating activities | $ | 27,528 | $ | (44 | ) | $ | 27,484 | ||||||
Investing activities | (65,585 | ) | 44 | (65,541 | ) | ||||||||
As of March 31, 2015, the cumulative impact of this revision was a $6.7 million reduction in retained earnings. The diluted loss per share from continuing operations decrease for the year ended December 31, 2014 was $0.03. The diluted loss per share from continuing operations increase for the years ended December 31, 2013 and 2012 was $0.06 for both periods. The notes to the condensed consolidated financial statements for the three months ended March 31, 2015 have been revised, as applicable. |
Recently_Adopted_and_Recently_
Recently Adopted and Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2015 | |
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 2015: | |
On January 1, 2015, the Company adopted changes issued by the Financial Accounting Standards Board ("FASB") related to reporting discontinued operations and the disclosure of disposals of components of an entity. The changes modify the criteria related to what transactions constitute discontinued operations and expand disclosure requirements. The adoption of these changes did not have a material impact on the Company's condensed consolidated financial statements. | |
The following accounting standards have been issued and become effective for the Company at a future date: | |
In May 2014, the FASB issued changes related to the recognition of revenue from contracts with customers. The changes clarify the principles for recognizing revenue and develop a common revenue standard. The core principle of the changes is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The changes also require additional disclosures related to revenue recognition. The changes become effective for the Company on January 1, 2017; however, on April 1, 2015 the FASB proposed a deferral of the effective date by one year, but permits entities to adopt one year earlier. These proposed changes are not yet final. Management is currently evaluating these changes. | |
In August 2014, the FASB issued changes related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The changes become effective for the Company on January 1, 2017. Management has determined that these changes will not have a material impact on the Company's condensed consolidated financial statements. | |
In January 2015, the FASB issued changes related to reporting extraordinary and unusual items. The changes simplify income statement presentation by eliminating the concept of extraordinary items. The changes become effective for the Company on January 1, 2016. Management has determined that these changes will not have a material impact on the Company's condensed consolidated financial statements. | |
In February 2015, the FASB issued changes related to consolidation. The changes update consolidation analysis and affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. The changes become effective for the Company on January 1, 2016. Management has determined that these changes will not have a material impact on the Company's condensed consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Acquisitions | Acquisitions |
Acquisitions | |
In March 2015, the Company acquired Protran Technology ("Protran"), a U.S. designer and producer of safety systems for transportation and industrial applications. Protran has been included in the results of the Harsco Rail Segment. Inclusion of pro forma financial information for this transaction is not necessary as the acquisition is immaterial. The purchase price allocation is not yet final for this acquisition. |
Accounts_Receivable_and_Invent
Accounts Receivable and Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounts Receivable And Inventories | |||||||||
Accounts Receivable and Inventories | Accounts Receivable and Inventories | ||||||||
Accounts receivable consist of the following: | |||||||||
(In thousands) | March 31 | December 31 | |||||||
2015 | 2014 | ||||||||
Trade accounts receivable | $ | 346,241 | $ | 340,223 | |||||
Less: Allowance for doubtful accounts | (14,236 | ) | (15,119 | ) | |||||
Trade accounts receivable, net | $ | 332,005 | $ | 325,104 | |||||
Other receivables (a) | $ | 21,709 | $ | 28,145 | |||||
(a) Other receivables include insurance claim receivables, employee receivables, tax claim receivables, receivables from affiliates 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) | 2015 | 2014 | |||||||
Provision for doubtful accounts related to trade accounts receivable | $ | 196 | $ | (19 | ) | ||||
Inventories consist of the following: | |||||||||
(In thousands) | March 31 | December 31 | |||||||
2015 | 2014 | ||||||||
Finished goods | $ | 33,480 | $ | 30,525 | |||||
Work-in-process | 43,261 | 28,690 | |||||||
Raw materials and purchased parts | 85,599 | 87,985 | |||||||
Stores and supplies | 32,258 | 31,722 | |||||||
Inventories | $ | 194,598 | $ | 178,922 | |||||
Equity_Method_Investments
Equity Method Investments | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||
Equity Method Investments | Equity Method Investments | ||||||||
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"). As a result of the Infrastructure Transaction, the Company owns an approximate 29% equity interest in Brand Energy & Infrastructure Services Inc. and Subsidiaries ("Brand" or the "Infrastructure strategic venture") at both March 31, 2015 and December 31, 2014. | |||||||||
The book value of the Company's equity method investment in Brand at March 31, 2015 and December 31, 2014 was $281.9 million and $285.7 million, respectively. No instances of impairment were noted on the Company's equity method investments as of March 31, 2015. 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 three month ended December 31, 2014 and the period from November 27, 2013 through December 31, 2013, respectively, are summarized as follows: | |||||||||
(In thousands) | Three Months Ended December 31 2014 | Period From November 27 2013 Through December 31 2013 (a) | |||||||
Summarized Statement of Operations Information of Brand: | |||||||||
Net revenues | $ | 804,199 | $ | 236,094 | |||||
Gross profit | 197,241 | 48,832 | |||||||
Net income (loss) attributable to Brand Energy & Infrastructure Services, Inc. and Subsidiaries | 14,217 | (4,245 | ) | ||||||
Harsco's equity in income (loss) of Brand | 4,083 | (1,231 | ) | ||||||
(a) The Company's equity method investment in Brand began on November 26, 2013; accordingly, there is only approximately one month of related equity income (loss). | |||||||||
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 the 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 the unit adjustment liability is a non-cash expense. For the three months ended March 31, 2015 and 2014, the Company recognized $2.2 million and $2.5 million, respectively, of change in fair value to the unit adjustment liability. | |||||||||
The Company's obligation to make a quarterly payment will cease upon the earlier of (i) Brand achieving $487.0 million in last twelve months' earnings before interest, taxes, depreciation and amortization ("EBITDA") 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, 2015 and December 31, 2014 include balances related to the unit adjustment liability of $90.4 million and $93.8 million, respectively, in the current and non-current captions, Unit adjustment liability. A reconciliation of beginning and ending balances related to the unit adjustment liability is included in Note 14, Derivative Instruments, Hedging Activities and Fair Value. | |||||||||
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 | |||||||
2015 | 2014 | ||||||||
Balances due from Brand | $ | 2,579 | $ | 1,860 | |||||
Balances due to Brand | 28,786 | 28,311 | |||||||
These balances between the Company and Brand relate primarily to 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. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 | |||||||
2015 | 2014 | ||||||||
Land | $ | 14,962 | $ | 15,721 | |||||
Land improvements | 15,621 | 15,898 | |||||||
Buildings and improvements | 199,362 | 205,409 | |||||||
Machinery and equipment | 1,773,141 | 1,861,965 | |||||||
Construction in progress | 72,367 | 87,414 | |||||||
Gross property, plant and equipment | 2,075,453 | 2,186,407 | |||||||
Less: Accumulated depreciation | (1,452,089 | ) | (1,523,163 | ) | |||||
Property, plant and equipment, net | $ | 623,364 | $ | 663,244 | |||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
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, 2015: | |||||||||||||||||||||
(In thousands) | Harsco Metals & Minerals Segment | Harsco Industrial Segment | Harsco Rail | Consolidated | |||||||||||||||||
Segment | Totals | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 400,006 | $ | 6,839 | $ | 9,310 | $ | 416,155 | |||||||||||||
Changes to goodwill (a) | — | — | 2,060 | 2,060 | |||||||||||||||||
Foreign currency translation | (15,461 | ) | — | — | (15,461 | ) | |||||||||||||||
Balance at March 31, 2015 | $ | 384,545 | $ | 6,839 | $ | 11,370 | $ | 402,754 | |||||||||||||
(a) Changes to goodwill relate to the acquisition of Protran. The purchase price allocation is not yet final for this acquisition. See Note 4, Acquisitions. | |||||||||||||||||||||
The Company’s 2014 annual goodwill impairment testing did not result in any impairment of the Company’s goodwill. The fair value of the Harsco Metals & Minerals Segment exceeded the carrying value by approximately 10%. 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 the 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, 2015, 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. Should the Company’s analysis indicate a further degradation in the overall markets served by the Harsco Metals & Minerals Segment, impairment losses for associated assets could be required. Any impairment could result in the write-down of the carrying value of goodwill to its implied fair value. | |||||||||||||||||||||
Intangible assets included in the captions, Other current assets and Intangible assets, net, on the Condensed Consolidated Balance Sheets consist of the following: | |||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||
(In thousands) | Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||
Customer related | $ | 154,415 | $ | 109,674 | $ | 157,530 | $ | 112,211 | |||||||||||||
Non-compete agreements | 1,092 | 1,032 | 1,107 | 1,039 | |||||||||||||||||
Patents | 6,866 | 5,369 | 6,079 | 5,399 | |||||||||||||||||
Technology related | 26,009 | 21,476 | 26,548 | 21,233 | |||||||||||||||||
Trade names | 8,314 | 3,841 | 7,745 | 3,733 | |||||||||||||||||
Other | 7,576 | 4,269 | 7,420 | 4,290 | |||||||||||||||||
Total | $ | 204,272 | $ | 145,661 | $ | 206,429 | $ | 147,905 | |||||||||||||
Amortization expense for intangible assets was as follows: | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
31-Mar | |||||||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||||||
Amortization expense for intangible assets | $ | 2,137 | $ | 2,553 | |||||||||||||||||
The estimated amortization expense for the next five fiscal years based on current intangible assets is as follows: | |||||||||||||||||||||
Full Year | |||||||||||||||||||||
(In thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Estimated amortization expense (b) | $ | 8,750 | $ | 8,250 | $ | 5,500 | $ | 5,250 | $ | 5,250 | |||||||||||
(b) These estimated amortization expense amounts do not reflect the potential effect of future foreign currency exchange fluctuations. |
Debt_and_Credit_Agreements
Debt and Credit Agreements | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements |
In March 2012, the Company entered into an Amended and Restated Five Year Credit Agreement (the "Credit Agreement") providing for $525 million of borrowing capacity through a syndicate of 14 banks. | |
On March 27, 2015, the Company entered into Amendment No. 3 ("Amendment No. 3") to the Credit Agreement. Amendment No. 3 provides for (i) $500 million of borrowing capacity, which the Company may request be increased to $550 million pending lenders’ agreement, through a syndicate of 11 banks; (ii) extension of the current termination date for the Credit Agreement from March 2, 2017 to June 2, 2019 upon successful completion of refinancing the Company's 2.7% notes due October 15, 2015; (iii) replacement of the existing consolidated debt to consolidated EBITDA ratio with a net debt to consolidated EBITDA ratio not to exceed 3.75 to 1.0 through March 31, 2016 and 3.5 to 1.0 thereafter; and (iv) modification to certain defined terms. During the three months ended March 31, 2015, the Company expensed $0.6 million of previously deferred financing costs associated with the Credit Agreement for banks which did not participate in Amendment No. 3 to the Credit Agreement. | |
At March 31, 2015 and December 31, 2014, the Company had $147.0 million and $98.5 million, respectively, of Credit Agreement borrowings outstanding. At March 31, 2015 and December 31, 2014, all such balances were classified as long-term borrowings in the Condensed Consolidated Balance Sheets. Classification of such balances is based on the Company's ability and intent to repay such amounts over the subsequent twelve months, as well as reflects the Company's ability and intent to borrow for a period longer than a year. To the extent the Company expects to repay any amounts within the subsequent twelve months, the amounts are classified as short-term borrowings. | |
At March 31, 2015, the Company's 2.7% notes due October 15, 2015 are classified as long-term debt on the Condensed Consolidated Balance Sheet based on the Company's intent and ability to refinance this debt using the debt capital markets and ability to refinance this debt under borrowings under the Credit Agreement. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31 | |||||||||||||||||
Defined Benefit Pension Plans Net Periodic Pension Cost | U. S. Plans | International Plans | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | 722 | $ | 558 | $ | 438 | $ | 407 | |||||||||
Interest cost | 3,089 | 3,217 | 9,189 | 10,912 | |||||||||||||
Expected return on plan assets | (4,203 | ) | (4,196 | ) | (12,674 | ) | (12,588 | ) | |||||||||
Recognized prior service costs | 20 | 22 | 49 | 46 | |||||||||||||
Recognized loss | 1,230 | 838 | 4,235 | 3,553 | |||||||||||||
Defined benefit pension plans net periodic pension cost | $ | 858 | $ | 439 | $ | 1,237 | $ | 2,330 | |||||||||
Three Months Ended | |||||||||||||||||
Company Contributions | March 31 | ||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Defined benefit pension plans: | |||||||||||||||||
United States | $ | 682 | $ | 566 | |||||||||||||
International | 16,066 | 17,421 | |||||||||||||||
Multiemployer pension plans | 565 | 701 | |||||||||||||||
Defined contribution pension plans | 3,806 | 4,069 | |||||||||||||||
The Company's estimate of expected contributions to be paid during the remainder of 2015 for the U.S. and international defined benefit pension plans are $1.8 million and $13.8 million, respectively. | |||||||||||||||||
During the first quarter of 2015, the Company identified an out-of-period adjustment related to an unasserted multiemployer pension plan withdrawal liability. See Note 2, Revised Financial Statements, for additional details. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The effective income tax rate related to continuing operations for the three months ended March 31, 2015 was 51.4% compared with 28.6% for the three months ended March 31, 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, 2015 was $14.5 million, including interest and penalties. Within the next twelve months, it is reasonably possible that up to $0.1 million of unrecognized income tax benefits will be recognized upon settlement of tax examinations and the expiration of various statutes of limitations. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
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 at both March 31, 2015 and December 31, 2014 include accruals in Other current liabilities of $1.2 million for environmental matters. The amounts charged against pre-tax income related to environmental matters totaled $0.2 million and $0.7 million for the three months ended March 31, 2015 and 2014, 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, 2015, the principal amount of the tax assessment from the SPRA with regard to this case was approximately $2 million, with penalty, interest and fees assessed to date increasing such amount by an additional $21 million. Any change in the aggregate amount since the Company’s last Annual Report on Form 10-K is due to an increase in assessed interest and statutorily mandated legal fees for the period as well as foreign currency translation. | |
Another ICMS tax case involving the SPRA refers to the tax period from January 2002 to December 2003, and is still pending at the administrative phase, where the aggregate amount assessed by the tax authorities in August 2005 was $7.8 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 $1.8 million, with penalty and interest assessed through that date increasing such amount by an additional $6.0 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 the above-mentioned tax claims under various alternatives, including judicial appeal. The Company will continue to evaluate its potential liability with regard to the above-mentioned claims on a quarterly basis; however, it is not possible to predict the ultimate outcome of the above-mentioned tax-related disputes in Brazil. No loss provision has been recorded in the Company's condensed consolidated financial statements for the disputes described above 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. | |
Brazilian Labor Disputes | |
The Company is subject to collective bargaining and individual labor claims in Brazil through the Harsco Metals & Minerals Segment which allege, among other things, the Company's failure to pay required amounts for overtime and vacation at certain sites. The Company is vigorously defending itself against these claims; however, litigation is inherently unpredictable, particularly in foreign jurisdictions. While the Company does not currently expect that the ultimate resolution of these claims will have a material adverse effect on the Company’s financial condition, results of operations or cash flows, it is not possible to predict the ultimate outcome of these labor-related disputes. | |
The Company is continuing to review all known labor claims and as of March 31, 2015 and December 31, 2014, the Company has established reserves of $7.1 million and $8.6 million, respectively, on the Company's Condensed Consolidated Balance Sheets for amounts considered to be probable and estimable. As the Company continues to evaluate these claims and takes actions to address them, the amount of established reserves may be impacted. | |
Customer Disputes | |
The Company, through its Harsco Metals & Minerals Segment, provides services through long-term service contracts on a number of sites worldwide. As previously disclosed, a subcontractor at the site of a large customer has filed for arbitration against the Company, claiming that it is owed monetary damages from the Company in connection with its processing certain materials. The Company disputes that it is responsible for such alleged damages and intends to vigorously defend itself against this claim. In addition, the Company has impleaded its customer - which the Company believes has responsibility for any damages - into its arbitration with the subcontractor. The Company has concluded that a loss contingency is neither probable nor estimable and, therefore has not made any provision for any potential loss in its condensed consolidated financial statements. Moreover, based on the information currently available to the Company, the Company does not expect that the ultimate resolution of this arbitration will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. | |
The Company, through its Harsco Metals & Minerals Segment, may, in the normal of business, become involved in commercial disputes with other subcontractors or customers. Although results of operations and cash flows for a given period could be adversely affected by a negative outcome in these or other lawsuits, claims and proceedings, management believes that the ultimate outcome of these matters will not have a material adverse effect on the Company's financial condition, results of operations or cash flows. | |
Other | |
The Company is named as one of many defendants (approximately 90 or more in most cases) in legal actions in the United States 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 asbestos-containing part of a Company product used in the past was purchased from a supplier and the asbestos encapsulated in other materials such that airborne exposure, if it occurred, was not harmful and is not associated with the types of injuries alleged in the pending actions. | |
At March 31, 2015, there were 17,266 pending asbestos personal injury actions filed against the Company. Of those actions, 16,939 were filed in the New York Supreme Court (New York County), 126 were filed in other New York State Supreme Court Counties and 201 were filed in courts located in other states. | |
The complaints in most of those actions generally follow a form that contains a standard damages demand of $20 million or $25 million, regardless of the individual plaintiff’s alleged medical condition, and without identifying any specific Company product. | |
At March 31, 2015, 16,816 of the actions filed in New York Supreme Court (New York County) were on the Deferred/Inactive Docket created by the court in December 2002 for all pending and future asbestos actions filed by persons who cannot demonstrate that they have a malignant condition or discernible physical impairment. The remaining 123 cases in New York County are pending on the Active or In Extremis Docket created for plaintiffs who can demonstrate a malignant condition or physical impairment. | |
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 in the asbestos actions referred to above. The Company believes that a substantial portion of the costs and expenses of the asbestos actions will be paid by the Company’s insurers. | |
In view of the persistence of asbestos litigation in the United States, the Company expects to continue to receive additional claims in the future. The Company intends to continue its practice of vigorously defending these claims and cases. At March 31, 2015, the Company has obtained dismissal in 27,621 cases by stipulation or summary judgment prior to trial. | |
It is not possible to predict the ultimate outcome of asbestos-related actions in the United States due to the unpredictable nature of this litigation, and no loss provision has been recorded in the Company's condensed 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 actions, 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, 2014 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, 2015 | |||||||||
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) | 2015 | 2014 | |||||||
Income from continuing operations attributable to Harsco Corporation common stockholders | $ | 15,671 | $ | 10,614 | |||||
Weighted-average shares outstanding - basic | 80,240 | 80,816 | |||||||
Dilutive effect of stock-based compensation | 112 | 206 | |||||||
Weighted-average shares outstanding - diluted | $ | 80,352 | $ | 81,022 | |||||
Earnings from continuing operations per common share, attributable to Harsco Corporation common stockholders: | |||||||||
Basic | $ | 0.2 | $ | 0.13 | |||||
Diluted | $ | 0.2 | $ | 0.13 | |||||
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) | 2015 | 2014 | |||||||
Stock options | 114 | 215 | |||||||
Stock appreciation rights | 864 | 15 | |||||||
Performance share units | 122 | — | |||||||
Derivative_Instruments_Hedging
Derivative Instruments, Hedging Activities and Fair Value | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
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, commodity contracts and cross-currency interest rate swaps, to manage certain foreign currency, commodity price and interest rate 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, 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, 2015, 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, 2015 and December 31, 2014 was as follows: | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(In thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||
March 31, 2015 | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 902 | $ | — | |||||||||||||
Cross-currency interest rate swaps | Other assets | 90,541 | Other liabilities | 17 | ||||||||||||||
Total derivatives designated as hedging instruments | $ | 91,443 | $ | 17 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 5,479 | Other current liabilities | $ | 3,334 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(In thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||
December 31, 2014 | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 420 | $ | — | |||||||||||||
Cross-currency interest rate swaps | Other assets | 52,989 | Other liabilities | 2,599 | ||||||||||||||
Total derivatives designated as hedging instruments | $ | 53,409 | $ | 2,599 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 4,065 | Other current liabilities | $ | 4,618 | ||||||||||||
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 March 31, 2015. At December 31, 2014, such arrangements did not result in a net asset or net liability. | ||||||||||||||||||
The effect of derivative instruments on the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2015 and 2014 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, 2015: | ||||||||||||||||||
Foreign currency forward exchange contracts | $ | 475 | Cost of services and products sold | $ | 1 | $ | — | |||||||||||
Cross-currency interest rate swaps | 8,621 | — | Cost of services and products sold | 30,742 | (a) | |||||||||||||
$ | 9,096 | $ | 1 | $ | 30,742 | |||||||||||||
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 | ) | ||||||||||
(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 (b) | |||||||||||||||||
(In thousands) | 2015 | 2014 | ||||||||||||||||
Foreign currency forward exchange contracts | Cost of services and products sold | $ | 4,755 | $ | 1,556 | |||||||||||||
(b) These gains 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, and 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 various subsidiaries, suppliers or customers. The 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, 2015 and December 31, 2014. 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, 2015: | ||||||||||||||||||
(In thousands) | Type | U.S. Dollar | Maturity | Recognized | ||||||||||||||
Equivalent | Gain (Loss) | |||||||||||||||||
British pounds sterling | Sell | $ | 163 | Apr-15 | $ | 4 | ||||||||||||
British pounds sterling | Buy | 2,138 | Apr-15 | (46 | ) | |||||||||||||
Euros | Sell | 230,113 | April 2015 through August 2015 | 1,473 | ||||||||||||||
Euros | Buy | 210,841 | April 2015 through July 2015 | 810 | ||||||||||||||
Other currencies | Sell | 35,657 | April 2015 through December 2015 | 840 | ||||||||||||||
Other currencies | Buy | 7,955 | Apr-15 | (34 | ) | |||||||||||||
Total | $ | 486,867 | $ | 3,047 | ||||||||||||||
Contracted Amounts of Foreign Currency Forward Exchange Contracts Outstanding at December 31, 2014: | ||||||||||||||||||
(In thousands) | Type | U.S. Dollar | Maturity | Recognized | ||||||||||||||
Equivalent | Gain (Loss) | |||||||||||||||||
British pounds sterling | Sell | $ | 37,943 | Jan-15 | $ | 179 | ||||||||||||
British pounds sterling | Buy | 2,783 | Jan-15 | (4 | ) | |||||||||||||
Euros | Sell | 193,370 | January 2015 through March 2015 | 2,993 | ||||||||||||||
Euros | Buy | 194,084 | January 2015 through March 2015 | (3,767 | ) | |||||||||||||
Other currencies | Sell | 12,641 | January 2015 through December 2015 | 439 | ||||||||||||||
Other currencies | Buy | 28,001 | January 2015 through June 2015 | 27 | ||||||||||||||
Total | $ | 468,822 | $ | (133 | ) | |||||||||||||
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 gains of $3.1 million and $0.2 million during the three months ended March 31, 2015 and 2014, 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. At maturity, there is also the payment of principal amounts between currencies. 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 and changes in the credit worthiness of the counter-parties recorded in the caption, Accumulated other comprehensive loss. Changes in value attributed to the effect of foreign currency fluctuations are recorded in the Condensed Consolidated 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, 2015: | ||||||||||||||||||
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 | 8.2 | 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, 2015 and December 31, 2014: | ||||||||||||||||||
Level 2 Fair Value Measurements | March 31 | December 31 | ||||||||||||||||
(In thousands) | 2015 | 2014 | ||||||||||||||||
Assets | ||||||||||||||||||
Foreign currency forward exchange contracts | $ | 6,381 | $ | 4,485 | ||||||||||||||
Cross-currency interest rate swaps | 90,541 | 52,989 | ||||||||||||||||
Liabilities | ||||||||||||||||||
Foreign currency forward exchange contracts | 3,334 | 4,618 | ||||||||||||||||
Cross-currency interest rate swaps | 17 | 2,599 | ||||||||||||||||
The following tables reconciles the beginning and ending balances for liabilities measured on a recurring basis using unobservable inputs (Level 3) for the three months ended March 31, 2015: | ||||||||||||||||||
Level 3 Liabilities—Unit Adjustment Liability (a) for the Three Months Ended March 31 | Three Months Ended | |||||||||||||||||
(In thousands) | March 31 | |||||||||||||||||
2015 | 2014 | |||||||||||||||||
Balance at beginning of period | $ | 93,762 | $ | 106,343 | ||||||||||||||
Payments | (5,580 | ) | (5,580 | ) | ||||||||||||||
Change in fair value to the unit adjustment liability | 2,245 | 2,546 | ||||||||||||||||
Balance at end of period | $ | 90,427 | $ | 103,308 | (b) | |||||||||||||
(a) See Note 6, 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, 2015 and December 31, 2014, the total fair value of long-term debt, including current maturities, was $927.5 million and $885.0 million, respectively, compared with a carrying value of $900.2 million and $854.9 million, respectively. Fair values for long-term 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, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Review of Operations by Segment | Review of Operations by Segment | ||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Revenues From Continuing Operations | |||||||||
Harsco Metals & Minerals | $ | 291,198 | $ | 352,822 | |||||
Harsco Industrial | 98,803 | 102,100 | |||||||
Harsco Rail | 61,578 | 57,561 | |||||||
Total revenues from continuing operations | $ | 451,579 | $ | 512,483 | |||||
Operating Income (Loss) From Continuing Operations | |||||||||
Harsco Metals & Minerals | $ | 10,583 | $ | 22,649 | |||||
Harsco Industrial | 17,027 | 16,571 | |||||||
Harsco Rail | 21,633 | 5,499 | |||||||
Corporate | (10,362 | ) | (12,492 | ) | |||||
Total operating income from continuing operations | $ | 38,881 | $ | 32,227 | |||||
Depreciation and Amortization | |||||||||
Harsco Metals & Minerals | $ | 34,891 | $ | 40,701 | |||||
Harsco Industrial | 1,287 | 1,202 | |||||||
Harsco Rail | 1,556 | 1,419 | |||||||
Corporate | 2,157 | 1,513 | |||||||
Total Depreciation and Amortization | $ | 39,891 | $ | 44,835 | |||||
Capital Expenditures | |||||||||
Harsco Metals & Minerals | $ | 21,828 | $ | 37,741 | |||||
Harsco Industrial | 7,221 | 643 | |||||||
Harsco Rail | 537 | 886 | |||||||
Corporate | 2,044 | 569 | |||||||
Total Capital Expenditures | $ | 31,630 | $ | 39,839 | |||||
Reconciliation of Segment Operating Income to Income From Continuing Operations Before Income Taxes and Equity Income | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Segment operating income | $ | 49,243 | $ | 44,719 | |||||
General Corporate expense | (10,362 | ) | (12,492 | ) | |||||
Operating income from continuing operations | 38,881 | 32,227 | |||||||
Interest income | 256 | 297 | |||||||
Interest expense | (11,884 | ) | (11,421 | ) | |||||
Change in fair value to unit adjustment liability | (2,245 | ) | (2,546 | ) | |||||
Income from continuing operations before income taxes and equity income | $ | 25,008 | $ | 18,557 | |||||
Other_Income
Other Income | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Income and Expenses [Abstract] | |||||||||
Other Income | Other Income | ||||||||
This Condensed Consolidated Statements of Operations caption includes certain foreign currency gains, net gains on disposal of non-core assets, restructuring program costs, impaired asset write-downs, employee termination benefit costs and costs to exit activities. | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Net gains | $ | (3,790 | ) | $ | (2,358 | ) | |||
Foreign currency gains related to Harsco Rail Segment advances on contracts | (10,940 | ) | — | ||||||
Other (a) | 1,525 | 1,702 | |||||||
Other income | $ | (13,205 | ) | $ | (656 | ) | |||
(a) Other includes employee termination benefit costs and costs to exit activities that are not directly related to the restructuring programs detailed in Note 18, Restructuring Programs. | |||||||||
In January 2015, the Swiss National Bank ended its policy of maintaining a stable exchange rate between the Swiss franc and the euro. As a result of this change in policy, the Swiss franc experienced significant appreciation against the euro. During the three months ended March 31, 2015, the Company recognized $10.9 million in foreign currency gains from converting Swiss franc bank deposits to euros. This gain was associated with advances received for the Harsco Rail Segment's two contracts with the federal railway system of Switzerland. |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | Components of Accumulated Other Comprehensive Income (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, 2014 and 2015 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, 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, net of tax | — | 1 | 4,100 | — | 4,101 | ||||||||||||||||
Other comprehensive income (loss) from equity method investee | (913 | ) | — | 632 | — | (281 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss in connection with the asset impairment loss recognized in the Infrastructure Transaction | (1,447 | ) | — | — | — | (1,447 | ) | ||||||||||||||
Total other comprehensive income (loss) | (1,270 | ) | (3,963 | ) | 3,681 | (5 | ) | (1,557 | ) | ||||||||||||
Less: Other comprehensive 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 | ) | |||||||
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, 2014 | $ | (39,938 | ) | $ | (9,025 | ) | $ | (483,278 | ) | $ | (15 | ) | $ | (532,256 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (23,653 | ) | (a) | 7,955 | (b) | 19,634 | (a) | (8 | ) | 3,928 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | — | 1 | 5,064 | — | 5,065 | ||||||||||||||||
Other comprehensive income (loss) from equity method investee | (5,189 | ) | (382 | ) | 595 | — | (4,976 | ) | |||||||||||||
Total other comprehensive income (loss) | (28,842 | ) | 7,574 | 25,293 | (8 | ) | 4,017 | ||||||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | 754 | 10 | — | — | 764 | ||||||||||||||||
Other comprehensive income (loss) attributable to Harsco Corporation | (28,088 | ) | 7,584 | 25,293 | (8 | ) | 4,781 | ||||||||||||||
Balance at March 31, 2015 | $ | (68,026 | ) | $ | (1,441 | ) | $ | (457,985 | ) | $ | (23 | ) | $ | (527,475 | ) | ||||||
(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 | Affected Caption in the Condensed Consolidated Statements of Operations | ||||||||||||||||||
March 31 | March 31 | ||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Amortization of defined benefit pension items (c): | |||||||||||||||||||||
Actuarial losses (d) | $ | 3,947 | $ | 2,839 | Selling, general and administrative expenses | ||||||||||||||||
Actuarial losses (d) | 1,518 | 1,552 | Cost of services and products sold | ||||||||||||||||||
Prior-service costs (d) | 31 | 23 | Selling, general and administrative expenses | ||||||||||||||||||
Prior-service costs (d) | 38 | 45 | Cost of services and products sold | ||||||||||||||||||
Total before tax | 5,534 | 4,459 | |||||||||||||||||||
Tax benefit | (470 | ) | (359 | ) | |||||||||||||||||
Total reclassification of defined benefit pension items, net of tax | $ | 5,064 | $ | 4,100 | |||||||||||||||||
Amortization of cash flow hedging instruments (c): | |||||||||||||||||||||
Foreign currency forward exchange contracts | $ | 1 | $ | 2 | Cost of services and products sold | ||||||||||||||||
Tax benefit | — | (1 | ) | ||||||||||||||||||
Total reclassification of cash flow hedging instruments | $ | 1 | $ | 1 | |||||||||||||||||
(c) Amounts in parentheses indicate credits to profit/loss. | |||||||||||||||||||||
(d) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See Note 10, Employee Benefit Plans, for additional details. |
Restructuring_Programs
Restructuring Programs | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 as part of the caption, Other income, 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. | |||||||||||||||||
Project Orion | |||||||||||||||||
Under the Harsco Metals & Minerals Segment Improvement Plan ("Project Orion"), the Harsco Metals & Minerals Segment made organizational and process improvement changes, which are expected to improve return on capital and deliver a higher and more consistent level of service to customers by improving several core processes and simplifying the organizational structure. Annual recurring benefits under Project Orion are expected to be approximately $37 million. | |||||||||||||||||
The restructuring accrual for Project Orion at March 31, 2015 and the activity for the three months ended March 31, 2015 were as follows: | |||||||||||||||||
(In thousands) | Accrual at | Cash | Foreign | Accrual at | |||||||||||||
December 31 2014 | Expenditures | Currency | March 31 2015 | ||||||||||||||
Translation | |||||||||||||||||
Harsco Metals & Minerals Segment | |||||||||||||||||
Employee termination benefit costs | $ | 7,668 | $ | (1,590 | ) | $ | (120 | ) | $ | 5,958 | |||||||
Total | $ | 7,668 | $ | (1,590 | ) | $ | (120 | ) | $ | 5,958 | |||||||
The remaining accrual related to Project Orion is expected to be paid, principally, through 2015 with the remainder in the first half of 2016. | |||||||||||||||||
Prior Restructuring Programs | |||||||||||||||||
The remaining accrual for restructuring programs was $2.2 million and $2.4 million at March 31, 2015 and December 31, 2014, respectively. The remaining accrual relates primarily to exit activity costs for lease terminations expected to be paid over the remaining life of the leases. |
Revised_Financial_Statements_T
Revised Financial Statements (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The impact of revising the Company’s Condensed Consolidated Balance Sheets, Condensed Statements of Operations and Condensed Consolidated Statements of Cash Flows for all period presented are as follows: | ||||||||||||
December 31, 2014 | |||||||||||||
(In thousands) | As Previously Reported | Revision | As Revised | ||||||||||
ASSETS | |||||||||||||
Inventories | $ | 177,265 | $ | 1,657 | $ | 178,922 | |||||||
Total current assets | 681,822 | 1,657 | 683,479 | ||||||||||
Other assets | 155,551 | 3,769 | 159,320 | ||||||||||
Total assets | 2,263,801 | 5,426 | 2,269,227 | ||||||||||
LIABILITIES | |||||||||||||
Other liabilities | $ | 25,849 | $ | 11,850 | $ | 37,699 | |||||||
Total liabilities | 1,905,467 | 11,850 | 1,917,317 | ||||||||||
HARSCO CORPORATION STOCKHOLDERS’ EQUITY | |||||||||||||
Accumulated other comprehensive loss | $ | (532,491 | ) | $ | 235 | $ | (532,256 | ) | |||||
Retained earnings | 1,290,208 | (6,659 | ) | 1,283,549 | |||||||||
Total Harsco Corporation stockholders’ equity | 314,012 | (6,424 | ) | 307,588 | |||||||||
Total equity | 358,334 | (6,424 | ) | 351,910 | |||||||||
Total liabilities and equity | 2,263,801 | 5,426 | 2,269,227 | ||||||||||
Three Months Ended | |||||||||||||
31-Mar-14 | |||||||||||||
(In thousands, except per share amounts) | As Previously Reported | Revision | As Revised | ||||||||||
Revenues from continuing operations: | |||||||||||||
Service revenues | $ | 351,010 | $ | (216 | ) | $ | 350,794 | ||||||
Total revenues | 512,699 | (216 | ) | 512,483 | |||||||||
Costs and expenses from continuing operations: | |||||||||||||
Cost of services sold | $ | 293,999 | $ | 309 | $ | 294,308 | |||||||
Research and development expenses | 2,619 | 44 | 2,663 | ||||||||||
Loss on disposal of the Harsco Infrastructure Segment and transaction costs | 2,138 | (457 | ) | 1,681 | |||||||||
Total costs and expenses | 480,360 | (104 | ) | 480,256 | |||||||||
Operating income from continuing operations | $ | 32,339 | $ | (112 | ) | $ | 32,227 | ||||||
Income from continuing operations before income taxes and equity income | 18,669 | (112 | ) | 18,557 | |||||||||
Income tax expense | (4,495 | ) | (816 | ) | (5,311 | ) | |||||||
Income from continuing operations | 12,944 | (928 | ) | 12,016 | |||||||||
Net income | 12,541 | (928 | ) | 11,613 | |||||||||
Net income attributable to Harsco Corporation | 11,139 | (928 | ) | 10,211 | |||||||||
Amounts attributable to Harsco Corporation common stockholders: | |||||||||||||
Income from continuing operations, net of tax | $ | 11,542 | $ | (928 | ) | $ | 10,614 | ||||||
Net income attributable to Harsco Corporation common stockholders | 11,139 | (928 | ) | 10,211 | |||||||||
Basic earnings (loss) per common share attributable to Harsco Corporation common stockholders: | |||||||||||||
Continuing operations | $ | 0.14 | $ | (0.01 | ) | $ | 0.13 | ||||||
Basic earnings per share attributable to Harsco Corporation common stockholders | 0.14 | (0.01 | ) | 0.13 | |||||||||
Diluted earnings (loss) per common share attributable to Harsco Corporation common stockholders: | |||||||||||||
Continuing operations | $ | 0.14 | $ | (0.01 | ) | $ | 0.13 | ||||||
Diluted earnings per share attributable to Harsco Corporation common stockholders | 0.14 | (0.01 | ) | 0.13 | |||||||||
Three Months Ended | |||||||||||||
31-Mar-14 | |||||||||||||
(In thousands) | As Previously Reported | Revision | As Revised | ||||||||||
Net cash provided (used) by: | |||||||||||||
Operating activities | $ | 27,528 | $ | (44 | ) | $ | 27,484 | ||||||
Investing activities | (65,585 | ) | 44 | (65,541 | ) | ||||||||
Accounts_Receivable_and_Invent1
Accounts Receivable and Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounts Receivable And Inventories | |||||||||
Schedule of accounts receivable | Accounts receivable consist of the following: | ||||||||
(In thousands) | March 31 | December 31 | |||||||
2015 | 2014 | ||||||||
Trade accounts receivable | $ | 346,241 | $ | 340,223 | |||||
Less: Allowance for doubtful accounts | (14,236 | ) | (15,119 | ) | |||||
Trade accounts receivable, net | $ | 332,005 | $ | 325,104 | |||||
Other receivables (a) | $ | 21,709 | $ | 28,145 | |||||
(a) Other receivables include insurance claim receivables, employee receivables, tax claim receivables, receivables from affiliates 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) | 2015 | 2014 | |||||||
Provision for doubtful accounts related to trade accounts receivable | $ | 196 | $ | (19 | ) | ||||
Schedule of inventories | Inventories consist of the following: | ||||||||
(In thousands) | March 31 | December 31 | |||||||
2015 | 2014 | ||||||||
Finished goods | $ | 33,480 | $ | 30,525 | |||||
Work-in-process | 43,261 | 28,690 | |||||||
Raw materials and purchased parts | 85,599 | 87,985 | |||||||
Stores and supplies | 32,258 | 31,722 | |||||||
Inventories | $ | 194,598 | $ | 178,922 | |||||
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||
Equity Method Investments | Brand's results of operations for the three month ended December 31, 2014 and the period from November 27, 2013 through December 31, 2013, respectively, are summarized as follows: | ||||||||
(In thousands) | Three Months Ended December 31 2014 | Period From November 27 2013 Through December 31 2013 (a) | |||||||
Summarized Statement of Operations Information of Brand: | |||||||||
Net revenues | $ | 804,199 | $ | 236,094 | |||||
Gross profit | 197,241 | 48,832 | |||||||
Net income (loss) attributable to Brand Energy & Infrastructure Services, Inc. and Subsidiaries | 14,217 | (4,245 | ) | ||||||
Harsco's equity in income (loss) of Brand | 4,083 | (1,231 | ) | ||||||
(a) The Company's equity method investment in Brand began on November 26, 2013; accordingly, there is only approximately one month of related equity income (loss). | |||||||||
Schedule of Related Party Transactions | Balances related to transactions between the Company and Brand are as follows: | ||||||||
(In thousands) | March 31 | December 31 | |||||||
2015 | 2014 | ||||||||
Balances due from Brand | $ | 2,579 | $ | 1,860 | |||||
Balances due to Brand | 28,786 | 28,311 | |||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 | |||||||
2015 | 2014 | ||||||||
Land | $ | 14,962 | $ | 15,721 | |||||
Land improvements | 15,621 | 15,898 | |||||||
Buildings and improvements | 199,362 | 205,409 | |||||||
Machinery and equipment | 1,773,141 | 1,861,965 | |||||||
Construction in progress | 72,367 | 87,414 | |||||||
Gross property, plant and equipment | 2,075,453 | 2,186,407 | |||||||
Less: Accumulated depreciation | (1,452,089 | ) | (1,523,163 | ) | |||||
Property, plant and equipment, net | $ | 623,364 | $ | 663,244 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
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, 2015: | ||||||||||||||||||||
(In thousands) | Harsco Metals & Minerals Segment | Harsco Industrial Segment | Harsco Rail | Consolidated | |||||||||||||||||
Segment | Totals | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 400,006 | $ | 6,839 | $ | 9,310 | $ | 416,155 | |||||||||||||
Changes to goodwill (a) | — | — | 2,060 | 2,060 | |||||||||||||||||
Foreign currency translation | (15,461 | ) | — | — | (15,461 | ) | |||||||||||||||
Balance at March 31, 2015 | $ | 384,545 | $ | 6,839 | $ | 11,370 | $ | 402,754 | |||||||||||||
(a) Changes to goodwill relate to the acquisition of Protran. The purchase price allocation is not yet final for this acquisition. See Note 4, Acquisitions. | |||||||||||||||||||||
Schedule of intangible assets by class | Intangible assets included in the captions, Other current assets and Intangible assets, net, on the Condensed Consolidated Balance Sheets consist of the following: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||
(In thousands) | Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||
Customer related | $ | 154,415 | $ | 109,674 | $ | 157,530 | $ | 112,211 | |||||||||||||
Non-compete agreements | 1,092 | 1,032 | 1,107 | 1,039 | |||||||||||||||||
Patents | 6,866 | 5,369 | 6,079 | 5,399 | |||||||||||||||||
Technology related | 26,009 | 21,476 | 26,548 | 21,233 | |||||||||||||||||
Trade names | 8,314 | 3,841 | 7,745 | 3,733 | |||||||||||||||||
Other | 7,576 | 4,269 | 7,420 | 4,290 | |||||||||||||||||
Total | $ | 204,272 | $ | 145,661 | $ | 206,429 | $ | 147,905 | |||||||||||||
Schedule of amortization expense | Amortization expense for intangible assets was as follows: | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
31-Mar | |||||||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||||||
Amortization expense for intangible assets | $ | 2,137 | $ | 2,553 | |||||||||||||||||
Schedule of estimated amortization expense | The estimated amortization expense for the next five fiscal years based on current intangible assets is as follows: | ||||||||||||||||||||
Full Year | |||||||||||||||||||||
(In thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Estimated amortization expense (b) | $ | 8,750 | $ | 8,250 | $ | 5,500 | $ | 5,250 | $ | 5,250 | |||||||||||
(b) 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, 2015 | |||||||||||||||||
Employee Benefit Plans | |||||||||||||||||
Schedule of net benefit costs | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31 | |||||||||||||||||
Defined Benefit Pension Plans Net Periodic Pension Cost | U. S. Plans | International Plans | |||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | 722 | $ | 558 | $ | 438 | $ | 407 | |||||||||
Interest cost | 3,089 | 3,217 | 9,189 | 10,912 | |||||||||||||
Expected return on plan assets | (4,203 | ) | (4,196 | ) | (12,674 | ) | (12,588 | ) | |||||||||
Recognized prior service costs | 20 | 22 | 49 | 46 | |||||||||||||
Recognized loss | 1,230 | 838 | 4,235 | 3,553 | |||||||||||||
Defined benefit pension plans net periodic pension cost | $ | 858 | $ | 439 | $ | 1,237 | $ | 2,330 | |||||||||
Schedule of contributions to pension plans | |||||||||||||||||
Three Months Ended | |||||||||||||||||
Company Contributions | March 31 | ||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Defined benefit pension plans: | |||||||||||||||||
United States | $ | 682 | $ | 566 | |||||||||||||
International | 16,066 | 17,421 | |||||||||||||||
Multiemployer pension plans | 565 | 701 | |||||||||||||||
Defined contribution pension plans | 3,806 | 4,069 | |||||||||||||||
Reconciliation_of_Basic_and_Di1
Reconciliation of Basic and Diluted Shares (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Reconciliation of basic and diluted shares | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands, except per share amounts) | 2015 | 2014 | |||||||
Income from continuing operations attributable to Harsco Corporation common stockholders | $ | 15,671 | $ | 10,614 | |||||
Weighted-average shares outstanding - basic | 80,240 | 80,816 | |||||||
Dilutive effect of stock-based compensation | 112 | 206 | |||||||
Weighted-average shares outstanding - diluted | $ | 80,352 | $ | 81,022 | |||||
Earnings from continuing operations per common share, attributable to Harsco Corporation common stockholders: | |||||||||
Basic | $ | 0.2 | $ | 0.13 | |||||
Diluted | $ | 0.2 | $ | 0.13 | |||||
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) | 2015 | 2014 | |||||||
Stock options | 114 | 215 | |||||||
Stock appreciation rights | 864 | 15 | |||||||
Performance share units | 122 | — | |||||||
Derivative_Instruments_Hedging1
Derivative Instruments, Hedging Activities and Fair Value (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
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, 2015 and December 31, 2014 was as follows: | |||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(In thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||
March 31, 2015 | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 902 | $ | — | |||||||||||||
Cross-currency interest rate swaps | Other assets | 90,541 | Other liabilities | 17 | ||||||||||||||
Total derivatives designated as hedging instruments | $ | 91,443 | $ | 17 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 5,479 | Other current liabilities | $ | 3,334 | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(In thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||
December 31, 2014 | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 420 | $ | — | |||||||||||||
Cross-currency interest rate swaps | Other assets | 52,989 | Other liabilities | 2,599 | ||||||||||||||
Total derivatives designated as hedging instruments | $ | 53,409 | $ | 2,599 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | 4,065 | Other current liabilities | $ | 4,618 | ||||||||||||
Schedule of effect of derivative instruments | he effect of derivative instruments on the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2015 and 2014 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, 2015: | ||||||||||||||||||
Foreign currency forward exchange contracts | $ | 475 | Cost of services and products sold | $ | 1 | $ | — | |||||||||||
Cross-currency interest rate swaps | 8,621 | — | Cost of services and products sold | 30,742 | (a) | |||||||||||||
$ | 9,096 | $ | 1 | $ | 30,742 | |||||||||||||
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 | ) | ||||||||||
(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 (b) | |||||||||||||||||
(In thousands) | 2015 | 2014 | ||||||||||||||||
Foreign currency forward exchange contracts | Cost of services and products sold | $ | 4,755 | $ | 1,556 | |||||||||||||
(b) These gains 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 table indicates the contractual amounts of the Company's cross-currency interest rate swaps at March 31, 2015: | |||||||||||||||||
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 | 8.2 | Floating U.S. dollar rate | Fixed rupee rate | |||||||||||||||
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, 2015 and December 31, 2014. 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, 2015: | ||||||||||||||||||
(In thousands) | Type | U.S. Dollar | Maturity | Recognized | ||||||||||||||
Equivalent | Gain (Loss) | |||||||||||||||||
British pounds sterling | Sell | $ | 163 | Apr-15 | $ | 4 | ||||||||||||
British pounds sterling | Buy | 2,138 | Apr-15 | (46 | ) | |||||||||||||
Euros | Sell | 230,113 | April 2015 through August 2015 | 1,473 | ||||||||||||||
Euros | Buy | 210,841 | April 2015 through July 2015 | 810 | ||||||||||||||
Other currencies | Sell | 35,657 | April 2015 through December 2015 | 840 | ||||||||||||||
Other currencies | Buy | 7,955 | Apr-15 | (34 | ) | |||||||||||||
Total | $ | 486,867 | $ | 3,047 | ||||||||||||||
Contracted Amounts of Foreign Currency Forward Exchange Contracts Outstanding at December 31, 2014: | ||||||||||||||||||
(In thousands) | Type | U.S. Dollar | Maturity | Recognized | ||||||||||||||
Equivalent | Gain (Loss) | |||||||||||||||||
British pounds sterling | Sell | $ | 37,943 | Jan-15 | $ | 179 | ||||||||||||
British pounds sterling | Buy | 2,783 | Jan-15 | (4 | ) | |||||||||||||
Euros | Sell | 193,370 | January 2015 through March 2015 | 2,993 | ||||||||||||||
Euros | Buy | 194,084 | January 2015 through March 2015 | (3,767 | ) | |||||||||||||
Other currencies | Sell | 12,641 | January 2015 through December 2015 | 439 | ||||||||||||||
Other currencies | Buy | 28,001 | January 2015 through June 2015 | 27 | ||||||||||||||
Total | $ | 468,822 | $ | (133 | ) | |||||||||||||
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, 2015 and December 31, 2014: | |||||||||||||||||
Level 2 Fair Value Measurements | March 31 | December 31 | ||||||||||||||||
(In thousands) | 2015 | 2014 | ||||||||||||||||
Assets | ||||||||||||||||||
Foreign currency forward exchange contracts | $ | 6,381 | $ | 4,485 | ||||||||||||||
Cross-currency interest rate swaps | 90,541 | 52,989 | ||||||||||||||||
Liabilities | ||||||||||||||||||
Foreign currency forward exchange contracts | 3,334 | 4,618 | ||||||||||||||||
Cross-currency interest rate swaps | 17 | 2,599 | ||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following tables reconciles the beginning and ending balances for liabilities measured on a recurring basis using unobservable inputs (Level 3) for the three months ended March 31, 2015: | |||||||||||||||||
Level 3 Liabilities—Unit Adjustment Liability (a) for the Three Months Ended March 31 | Three Months Ended | |||||||||||||||||
(In thousands) | March 31 | |||||||||||||||||
2015 | 2014 | |||||||||||||||||
Balance at beginning of period | $ | 93,762 | $ | 106,343 | ||||||||||||||
Payments | (5,580 | ) | (5,580 | ) | ||||||||||||||
Change in fair value to the unit adjustment liability | 2,245 | 2,546 | ||||||||||||||||
Balance at end of period | $ | 90,427 | $ | 103,308 | (b) | |||||||||||||
(a) See Note 6, 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, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Schedule of operations by segment | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Revenues From Continuing Operations | |||||||||
Harsco Metals & Minerals | $ | 291,198 | $ | 352,822 | |||||
Harsco Industrial | 98,803 | 102,100 | |||||||
Harsco Rail | 61,578 | 57,561 | |||||||
Total revenues from continuing operations | $ | 451,579 | $ | 512,483 | |||||
Operating Income (Loss) From Continuing Operations | |||||||||
Harsco Metals & Minerals | $ | 10,583 | $ | 22,649 | |||||
Harsco Industrial | 17,027 | 16,571 | |||||||
Harsco Rail | 21,633 | 5,499 | |||||||
Corporate | (10,362 | ) | (12,492 | ) | |||||
Total operating income from continuing operations | $ | 38,881 | $ | 32,227 | |||||
Depreciation and Amortization | |||||||||
Harsco Metals & Minerals | $ | 34,891 | $ | 40,701 | |||||
Harsco Industrial | 1,287 | 1,202 | |||||||
Harsco Rail | 1,556 | 1,419 | |||||||
Corporate | 2,157 | 1,513 | |||||||
Total Depreciation and Amortization | $ | 39,891 | $ | 44,835 | |||||
Capital Expenditures | |||||||||
Harsco Metals & Minerals | $ | 21,828 | $ | 37,741 | |||||
Harsco Industrial | 7,221 | 643 | |||||||
Harsco Rail | 537 | 886 | |||||||
Corporate | 2,044 | 569 | |||||||
Total Capital Expenditures | $ | 31,630 | $ | 39,839 | |||||
Reconciliation of segment operating income to income from continuing operations before income taxes and equity income | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Segment operating income | $ | 49,243 | $ | 44,719 | |||||
General Corporate expense | (10,362 | ) | (12,492 | ) | |||||
Operating income from continuing operations | 38,881 | 32,227 | |||||||
Interest income | 256 | 297 | |||||||
Interest expense | (11,884 | ) | (11,421 | ) | |||||
Change in fair value to unit adjustment liability | (2,245 | ) | (2,546 | ) | |||||
Income from continuing operations before income taxes and equity income | $ | 25,008 | $ | 18,557 | |||||
Other_Income_Tables
Other Income (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Income and Expenses [Abstract] | |||||||||
Schedule of other expenses | This Condensed Consolidated Statements of Operations caption includes certain foreign currency gains, net gains on disposal of non-core assets, restructuring program costs, impaired asset write-downs, employee termination benefit costs and costs to exit activities. | ||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(In thousands) | 2015 | 2014 | |||||||
Net gains | $ | (3,790 | ) | $ | (2,358 | ) | |||
Foreign currency gains related to Harsco Rail Segment advances on contracts | (10,940 | ) | — | ||||||
Other (a) | 1,525 | 1,702 | |||||||
Other income | $ | (13,205 | ) | $ | (656 | ) | |||
(a) Other includes employee termination benefit costs and costs to exit activities that are not directly related to the restructuring programs detailed in Note 18, Restructuring Programs. |
Components_of_Accumulated_Othe1
Components of Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
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, 2014 and 2015 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, 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, net of tax | — | 1 | 4,100 | — | 4,101 | ||||||||||||||||
Other comprehensive income (loss) from equity method investee | (913 | ) | — | 632 | — | (281 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss in connection with the asset impairment loss recognized in the Infrastructure Transaction | (1,447 | ) | — | — | — | (1,447 | ) | ||||||||||||||
Total other comprehensive income (loss) | (1,270 | ) | (3,963 | ) | 3,681 | (5 | ) | (1,557 | ) | ||||||||||||
Less: Other comprehensive 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 | ) | |||||||
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, 2014 | $ | (39,938 | ) | $ | (9,025 | ) | $ | (483,278 | ) | $ | (15 | ) | $ | (532,256 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (23,653 | ) | (a) | 7,955 | (b) | 19,634 | (a) | (8 | ) | 3,928 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | — | 1 | 5,064 | — | 5,065 | ||||||||||||||||
Other comprehensive income (loss) from equity method investee | (5,189 | ) | (382 | ) | 595 | — | (4,976 | ) | |||||||||||||
Total other comprehensive income (loss) | (28,842 | ) | 7,574 | 25,293 | (8 | ) | 4,017 | ||||||||||||||
Less: Other comprehensive loss attributable to noncontrolling interests | 754 | 10 | — | — | 764 | ||||||||||||||||
Other comprehensive income (loss) attributable to Harsco Corporation | (28,088 | ) | 7,584 | 25,293 | (8 | ) | 4,781 | ||||||||||||||
Balance at March 31, 2015 | $ | (68,026 | ) | $ | (1,441 | ) | $ | (457,985 | ) | $ | (23 | ) | $ | (527,475 | ) | ||||||
(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 | Affected Caption in the Condensed Consolidated Statements of Operations | ||||||||||||||||||
March 31 | March 31 | ||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Amortization of defined benefit pension items (c): | |||||||||||||||||||||
Actuarial losses (d) | $ | 3,947 | $ | 2,839 | Selling, general and administrative expenses | ||||||||||||||||
Actuarial losses (d) | 1,518 | 1,552 | Cost of services and products sold | ||||||||||||||||||
Prior-service costs (d) | 31 | 23 | Selling, general and administrative expenses | ||||||||||||||||||
Prior-service costs (d) | 38 | 45 | Cost of services and products sold | ||||||||||||||||||
Total before tax | 5,534 | 4,459 | |||||||||||||||||||
Tax benefit | (470 | ) | (359 | ) | |||||||||||||||||
Total reclassification of defined benefit pension items, net of tax | $ | 5,064 | $ | 4,100 | |||||||||||||||||
Amortization of cash flow hedging instruments (c): | |||||||||||||||||||||
Foreign currency forward exchange contracts | $ | 1 | $ | 2 | Cost of services and products sold | ||||||||||||||||
Tax benefit | — | (1 | ) | ||||||||||||||||||
Total reclassification of cash flow hedging instruments | $ | 1 | $ | 1 | |||||||||||||||||
(c) Amounts in parentheses indicate credits to profit/loss. | |||||||||||||||||||||
(d) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See Note 10, Employee Benefit Plans, for additional details. |
Restructuring_Programs_Tables
Restructuring Programs (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The restructuring accrual for Project Orion at March 31, 2015 and the activity for the three months ended March 31, 2015 were as follows: | ||||||||||||||||
(In thousands) | Accrual at | Cash | Foreign | Accrual at | |||||||||||||
December 31 2014 | Expenditures | Currency | March 31 2015 | ||||||||||||||
Translation | |||||||||||||||||
Harsco Metals & Minerals Segment | |||||||||||||||||
Employee termination benefit costs | $ | 7,668 | $ | (1,590 | ) | $ | (120 | ) | $ | 5,958 | |||||||
Total | $ | 7,668 | $ | (1,590 | ) | $ | (120 | ) | $ | 5,958 | |||||||
Revised_Financial_Statements_N
Revised Financial Statements (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Out-of-period adjustment, net affect on after-tax income | $7,500,000 | |||
Retained earnings | 1,282,465,000 | 1,283,549,000 | ||
Out-of-period adjustment net affect on diluted earnings per share (in dollars per share) | $0.03 | $0.06 | $0.06 | |
Revision | ||||
Retained earnings | ($6,659,000) |
Revised_Financial_Statements_D
Revised Financial Statements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Inventories | $194,598 | $178,922 | ||
Total current assets | 702,049 | 683,479 | ||
Other assets | 192,138 | 159,320 | ||
Total assets | 2,263,383 | 2,269,227 | ||
LIABILITIES | ||||
Other liabilities | 34,722 | 37,699 | ||
Total liabilities | 1,915,562 | 1,917,317 | ||
HARSCO CORPORATION STOCKHOLDERS’ EQUITY | ||||
Accumulated other comprehensive loss | -527,475 | -532,256 | -371,872 | -370,615 |
Retained earnings | 1,282,465 | 1,283,549 | ||
Total Harsco Corporation stockholders’ equity | 301,598 | 307,588 | ||
Total equity | 347,821 | 351,910 | 593,070 | 597,555 |
Total liabilities and equity | 2,263,383 | 2,269,227 | ||
As Previously Reported | ||||
ASSETS | ||||
Inventories | 177,265 | |||
Total current assets | 681,822 | |||
Other assets | 155,551 | |||
Total assets | 2,263,801 | |||
LIABILITIES | ||||
Other liabilities | 25,849 | |||
Total liabilities | 1,905,467 | |||
HARSCO CORPORATION STOCKHOLDERS’ EQUITY | ||||
Accumulated other comprehensive loss | -532,491 | |||
Retained earnings | 1,290,208 | |||
Total Harsco Corporation stockholders’ equity | 314,012 | |||
Total equity | 358,334 | |||
Total liabilities and equity | 2,263,801 | |||
Revision | ||||
ASSETS | ||||
Inventories | 1,657 | |||
Total current assets | 1,657 | |||
Other assets | 3,769 | |||
Total assets | 5,426 | |||
LIABILITIES | ||||
Other liabilities | 11,850 | |||
Total liabilities | 11,850 | |||
HARSCO CORPORATION STOCKHOLDERS’ EQUITY | ||||
Accumulated other comprehensive loss | 235 | |||
Retained earnings | -6,659 | |||
Total Harsco Corporation stockholders’ equity | -6,424 | |||
Total equity | -6,424 | |||
Total liabilities and equity | $5,426 |
Revised_Financial_Statements_D1
Revised Financial Statements (Details 2) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues from continuing operations: | ||
Service revenues | $287,428 | $350,794 |
Total revenues | 451,579 | 512,483 |
Costs and expenses from continuing operations: | ||
Cost of services sold | 245,861 | 294,308 |
Research and development expenses | 919 | 2,663 |
Loss on disposal of the Harsco Infrastructure Segment and transaction costs | 0 | 1,681 |
Total costs and expenses | 412,698 | 480,256 |
Operating income from continuing operations | 38,881 | 32,227 |
Income from continuing operations before income taxes and equity income | 25,008 | 18,557 |
Income tax expense | -12,855 | -5,311 |
Income from continuing operations | 16,236 | 12,016 |
Net income (loss) | 15,829 | 11,613 |
Net income attributable to Harsco Corporation | 15,264 | 10,211 |
Amounts attributable to Harsco Corporation common stockholders: | ||
Income from continuing operations, net of tax | 15,671 | 10,614 |
Basic earnings (loss) per common share attributable to Harsco Corporation common stockholders: | ||
Continuing operations (in dollars per share) | $0.20 | $0.13 |
Basic earnings per share attributable to Harsco Corporation common stockholders (in dollars per share) | $0.19 | $0.13 |
Diluted earnings (loss) per common share attributable to Harsco Corporation common stockholders: | ||
Continuing operations (in dollars per share) | $0.20 | $0.13 |
Diluted earnings per share attributable to Harsco Corporation common stockholders (in dollars per share) | $0.19 | $0.13 |
As Previously Reported | ||
Revenues from continuing operations: | ||
Service revenues | 351,010 | |
Total revenues | 512,699 | |
Costs and expenses from continuing operations: | ||
Cost of services sold | 293,999 | |
Research and development expenses | 2,619 | |
Loss on disposal of the Harsco Infrastructure Segment and transaction costs | 2,138 | |
Total costs and expenses | 480,360 | |
Operating income from continuing operations | 32,339 | |
Income from continuing operations before income taxes and equity income | 18,669 | |
Income tax expense | -4,495 | |
Income from continuing operations | 12,944 | |
Net income (loss) | 12,541 | |
Net income attributable to Harsco Corporation | 11,139 | |
Amounts attributable to Harsco Corporation common stockholders: | ||
Income from continuing operations, net of tax | 11,542 | |
Basic earnings (loss) per common share attributable to Harsco Corporation common stockholders: | ||
Continuing operations (in dollars per share) | $0.14 | |
Basic earnings per share attributable to Harsco Corporation common stockholders (in dollars per share) | $0.14 | |
Diluted earnings (loss) per common share attributable to Harsco Corporation common stockholders: | ||
Continuing operations (in dollars per share) | $0.14 | |
Diluted earnings per share attributable to Harsco Corporation common stockholders (in dollars per share) | $0.14 | |
Revision | ||
Revenues from continuing operations: | ||
Service revenues | -216 | |
Total revenues | -216 | |
Costs and expenses from continuing operations: | ||
Cost of services sold | 309 | |
Research and development expenses | 44 | |
Loss on disposal of the Harsco Infrastructure Segment and transaction costs | -457 | |
Total costs and expenses | -104 | |
Operating income from continuing operations | -112 | |
Income from continuing operations before income taxes and equity income | -112 | |
Income tax expense | -816 | |
Income from continuing operations | -928 | |
Net income (loss) | -928 | |
Net income attributable to Harsco Corporation | -928 | |
Amounts attributable to Harsco Corporation common stockholders: | ||
Income from continuing operations, net of tax | ($928) | |
Basic earnings (loss) per common share attributable to Harsco Corporation common stockholders: | ||
Continuing operations (in dollars per share) | ($0.01) | |
Basic earnings per share attributable to Harsco Corporation common stockholders (in dollars per share) | ($0.01) | |
Diluted earnings (loss) per common share attributable to Harsco Corporation common stockholders: | ||
Continuing operations (in dollars per share) | ($0.01) | |
Diluted earnings per share attributable to Harsco Corporation common stockholders (in dollars per share) | ($0.01) |
Revised_Financial_Statements_D2
Revised Financial Statements (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net cash provided (used) by: | ||
Operating activities | $10,473 | $27,484 |
Investing activities | -34,897 | -65,541 |
As Previously Reported | ||
Net cash provided (used) by: | ||
Operating activities | 27,528 | |
Investing activities | -65,585 | |
Revision | ||
Net cash provided (used) by: | ||
Operating activities | -44 | |
Investing activities | $44 |
Accounts_Receivable_and_Invent2
Accounts Receivable and Inventories (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Accounts receivable | |||||
Trade accounts receivable | $346,241 | $340,223 | |||
Less: Allowance for doubtful accounts | -14,236 | -15,119 | |||
Trade accounts receivable, net | 332,005 | 325,104 | |||
Other receivables | 21,709 | [1] | 28,145 | [1] | |
Provision for doubtful accounts related to trade accounts receivable | 196 | -19 | |||
Inventories | |||||
Finished goods | 33,480 | 30,525 | |||
Work-in-process | 43,261 | 28,690 | |||
Raw materials and purchased parts | 85,599 | 87,985 | |||
Stores and supplies | 32,258 | 31,722 | |||
Inventories | $194,598 | $178,922 | |||
[1] | Other receivables include insurance claim receivables, employee receivables, tax claim receivables, receivables from affiliates 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, 2015 | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||
Change in fair value to the unit adjustment liability | ($2,245,000) | ($2,546,000) | |||
Unit adjustment liability | 90,400,000 | 93,800,000 | |||
Infrastructure Transaction Strategic Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, fair value | 281,900,000 | 285,700,000 | |||
Total annual payments, before tax | 22,000,000 | ||||
Total annual payments, after tax | 15,000,000 | ||||
Transfer of ownership interest (in percent) | 2.50% | ||||
Investee EBITDA contingency threshold | 487,000,000 | ||||
Contingency threshold, number of years after agreement that would terminate company's quarterly payments | 8 years | ||||
In event of an IPO, minimum co-venture interest in partnership that could terminate company's quarterly payments | 20.00% | ||||
Liquidation preference | $336,000,000 | ||||
Harsco Infrastructure Segment | Infrastructure Transaction Strategic Venture [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of ownership in Brand | 29.00% |
Equity_Method_Investments_Deta1
Equity Method Investments (Details 2) (USD $) | 1 Months Ended | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
Summarized Statement of Operations Information of Brand: | ||||||
Net revenues | $236,094 | $804,199 | ||||
Gross profit | 48,832 | 197,241 | ||||
Net income (loss) attributable to Brand Energy & Infrastructure Services, Inc. and Subsidiaries | -4,245 | 14,217 | ||||
Equity in income (loss) of unconsolidated entities, net | 4,083 | -1,230 | ||||
Infrastructure Transaction Strategic Venture [Member] | ||||||
Summarized Statement of Operations Information of Brand: | ||||||
Equity in income (loss) of unconsolidated entities, net | ($1,231) | [1] | $4,083 | [1] | ||
[1] | (a) The Company's equity method investment in Brand began on November 26, 2013; accordingly, there is only approximately one month of related equity income (loss). |
Equity_Method_Investments_Deta2
Equity Method Investments (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Equity Method Investments and Joint Ventures [Abstract] | ||
Balances due from Brand | $2,579 | $1,860 |
Balances due to Brand | $28,786 | $28,311 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | $2,075,453 | $2,186,407 |
Less: Accumulated depreciation | -1,452,089 | -1,523,163 |
Property, plant and equipment, net | 623,364 | 663,244 |
Land | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 14,962 | 15,721 |
Land improvements | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 15,621 | 15,898 |
Buildings and improvements | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 199,362 | 205,409 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 1,773,141 | 1,861,965 |
Construction in progress | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | $72,367 | $87,414 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | |
Changes in carrying amounts of goodwill | ||
Balance at December 31, 2014 | $416,155 | |
Changes to goodwill | 2,060 | [1] |
Foreign currency translation | -15,461 | |
Balance at March 31, 2015 | 402,754 | |
Harsco Metals & Minerals Segment | ||
Changes in carrying amounts of goodwill | ||
Balance at December 31, 2014 | 400,006 | |
Changes to goodwill | 0 | [1] |
Foreign currency translation | -15,461 | |
Balance at March 31, 2015 | 384,545 | |
Harsco Industrial Segment | ||
Changes in carrying amounts of goodwill | ||
Balance at December 31, 2014 | 6,839 | |
Changes to goodwill | 0 | [1] |
Foreign currency translation | 0 | |
Balance at March 31, 2015 | 6,839 | |
Harsco Rail Segment | ||
Changes in carrying amounts of goodwill | ||
Balance at December 31, 2014 | 9,310 | |
Changes to goodwill | 2,060 | [1] |
Foreign currency translation | 0 | |
Balance at March 31, 2015 | $11,370 | |
[1] | (a) Changes to goodwill relate to the acquisition of Protran. The purchase price allocation is not yet final for this acquisition. See Note 4, Acquisitions. |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Intangible Assets, by category | ||||
Gross Carrying Amount | $204,272 | $206,429 | ||
Accumulated Amortization | 145,661 | 147,905 | ||
Amortization expense for intangible assets | 2,137 | 2,553 | ||
Estimated amortization expense for next 5 years | ||||
2015 | 8,750 | [1] | ||
2016 | 8,250 | [1] | ||
2017 | 5,500 | [1] | ||
2018 | 5,250 | [1] | ||
2019 | 5,250 | [1] | ||
Customer related | ||||
Intangible Assets, by category | ||||
Gross Carrying Amount | 154,415 | 157,530 | ||
Accumulated Amortization | 109,674 | 112,211 | ||
Non-compete agreements | ||||
Intangible Assets, by category | ||||
Gross Carrying Amount | 1,092 | 1,107 | ||
Accumulated Amortization | 1,032 | 1,039 | ||
Patents | ||||
Intangible Assets, by category | ||||
Gross Carrying Amount | 6,866 | 6,079 | ||
Accumulated Amortization | 5,369 | 5,399 | ||
Technology related | ||||
Intangible Assets, by category | ||||
Gross Carrying Amount | 26,009 | 26,548 | ||
Accumulated Amortization | 21,476 | 21,233 | ||
Trade names | ||||
Intangible Assets, by category | ||||
Gross Carrying Amount | 8,314 | 7,745 | ||
Accumulated Amortization | 3,841 | 3,733 | ||
Other | ||||
Intangible Assets, by category | ||||
Gross Carrying Amount | 7,576 | 7,420 | ||
Accumulated Amortization | $4,269 | $4,290 | ||
[1] | These estimated amortization expense amounts do not reflect the potential effect of future foreign currency exchange fluctuations. |
Debt_and_Credit_Agreements_Det
Debt and Credit Agreements (Details) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Mar. 27, 2015 | Mar. 31, 2012 | Dec. 31, 2014 | |
bank | bank | |||
Debt Instrument [Line Items] | ||||
Financing costs expensed | $600,000 | |||
Senior Notes [Member] | 2.7% Notes due October 15, 2015 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (in percent) | 2.70% | |||
Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 500,000,000 | 525,000,000 | ||
Number of lenders | 11 | 14 | ||
Contingent increase to maximum borrowing capacity | 550,000,000 | |||
Outstanding borrowings | $147,000,000 | $98,500,000 | ||
Line of Credit [Member] | Through March 31, 2016 [Member] | ||||
Debt Instrument [Line Items] | ||||
Net debt to consolidated EBITDA ratio | 3.75 | |||
Line of Credit [Member] | April 1, 2016 And Thereafter [Member] | ||||
Debt Instrument [Line Items] | ||||
Net debt to consolidated EBITDA ratio | 3.5 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Defined benefit plans: | |||
Multiemployer pension plans | $565,000 | $701,000 | |
Defined contribution pension plans | 3,806,000 | 4,069,000 | |
U. S. Plans | |||
Defined benefit plans: | |||
Service cost | 722,000 | 558,000 | |
Interest cost | 3,089,000 | 3,217,000 | |
Expected return on plan assets | -4,203,000 | -4,196,000 | |
Recognized prior service costs | 20,000 | 22,000 | |
Recognized loss | 1,230,000 | 838,000 | |
Recognized loss | 858,000 | 439,000 | |
Defined benefit pension plans: | 682,000 | 566,000 | |
Anticipated contributions to defined benefit pension plans during the remainder of the fiscal year | 1,800,000 | ||
International Plans | |||
Defined benefit plans: | |||
Service cost | 438,000 | 407,000 | |
Interest cost | 9,189,000 | 10,912,000 | |
Expected return on plan assets | -12,674,000 | -12,588,000 | |
Recognized prior service costs | 49,000 | 46,000 | |
Recognized loss | 4,235,000 | 3,553,000 | |
Recognized loss | 1,237,000 | 2,330,000 | |
Defined benefit pension plans: | 16,066,000 | 17,421,000 | |
Anticipated contributions to defined benefit pension plans during the remainder of the fiscal year | $13,800,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | 51.40% | 28.60% |
Unrecognized income tax benefits including interest and penalties | $14.50 | |
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 | $0.10 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Aug. 31, 2005 | Dec. 31, 2014 |
Environmental | ||||
Commitments and Contingencies | ||||
Accruals for environmental matters | $1.20 | $1.20 | ||
Charges related to environmental matters | 0.2 | 0.7 | ||
Brazilian Labor Claims | ||||
Commitments and Contingencies | ||||
Loss contingency accrual | 7.1 | 8.6 | ||
Other | ||||
Commitments and Contingencies | ||||
Approximate number of defendants that includes the company named in legal actions | 90 | |||
Number of pending claims | 17,266 | |||
Number of claims dismissed to date by stipulation or summary judgment prior to trial | 27,621 | |||
Other | Minimum | ||||
Commitments and Contingencies | ||||
Amount of damages sought | 20 | |||
Other | Maximum | ||||
Commitments and Contingencies | ||||
Amount of damages sought | 25 | |||
Sao Paulo State Revenue Authority | Brazilian Tax Disputes - Jan 2004 through May 2005 | ||||
Commitments and Contingencies | ||||
Damages sought - principal | 2 | |||
Damages sought - interest, penalties and fees | 21 | |||
Sao Paulo State Revenue Authority | Brazilian Tax Disputes - Jan 2002 through Dec 2003 | ||||
Commitments and Contingencies | ||||
Damages sought - principal | 1.8 | |||
Damages sought - interest, penalties and fees | 6 | |||
Amount of damages sought | $7.80 | |||
New York County as managed by the New York Supreme Court | Other | ||||
Commitments and Contingencies | ||||
Number of pending claims | 16,939 | |||
New York State Supreme Court, Counties Excluding New York County [Member] | Other | ||||
Commitments and Contingencies | ||||
Number of pending claims | 126 | |||
Courts Located In States Other Than New York [Member] | Other | ||||
Commitments and Contingencies | ||||
Number of pending claims | 201 | |||
Pending And Future Litigation, Deferred Or Inactive Docket [Member] | New York County as managed by the New York Supreme Court | Other | ||||
Commitments and Contingencies | ||||
Number of pending claims | 16,816 | |||
Active or In Extremis docket | Other | ||||
Commitments and Contingencies | ||||
Number of pending claims | 123 |
Reconciliation_of_Basic_and_Di2
Reconciliation of Basic and Diluted Shares (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Income from continuing operations, net of tax | $15,671 | $10,614 |
Weighted-average shares outstanding - basic (in shares) | 80,240 | 80,816 |
Dilutive effect of stock-based compensation (in shares) | 112 | 206 |
Weighted-average shares outstanding - diluted (in shares) | 80,352 | 81,022 |
Earnings from continuing operations per common share, attributable to Harsco Corporation common stockholders: | ||
Basic (in dollars per share) | $0.20 | $0.13 |
Diluted (in dollars per share) | $0.20 | $0.13 |
Reconciliation_of_Basic_and_Di3
Reconciliation of Basic and Diluted Shares (Details 2) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stock options | ||
Antidilutive securities | ||
Number of securities not included in computation of diluted earnings per share (in shares) | 114 | 215 |
Stock appreciation rights | ||
Antidilutive securities | ||
Number of securities not included in computation of diluted earnings per share (in shares) | 864 | 15 |
Performance share units | ||
Antidilutive securities | ||
Number of securities not included in computation of diluted earnings per share (in shares) | 122 | 0 |
Derivative_Instruments_Hedging2
Derivative Instruments, Hedging Activities and Fair Value (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Derivative contracts | ||
Derivatives subject to enforceable master netting arrangements, net liability | -100 | $0 |
Derivatives designated as hedging instruments | ||
Derivative contracts | ||
Asset Derivatives | 91,443 | 53,409 |
Liability Derivatives | 17 | 2,599 |
Derivatives designated as hedging instruments | Foreign currency forward exchange contracts | Other current assets | ||
Derivative contracts | ||
Asset Derivatives | 902 | 420 |
Derivatives designated as hedging instruments | Foreign currency forward exchange contracts | Other current liabilities | ||
Derivative contracts | ||
Liability Derivatives | 0 | 0 |
Derivatives designated as hedging instruments | Cross-currency interest rate swaps | Other assets | ||
Derivative contracts | ||
Asset Derivatives | 90,541 | 52,989 |
Derivatives designated as hedging instruments | Cross-currency interest rate swaps | Other liabilities | ||
Derivative contracts | ||
Liability Derivatives | 17 | 2,599 |
Derivatives not designated as hedging instruments | Foreign currency forward exchange contracts | Other current assets | ||
Derivative contracts | ||
Asset Derivatives | 5,479 | 4,065 |
Derivatives not designated as hedging instruments | Foreign currency forward exchange contracts | Other current liabilities | ||
Derivative contracts | ||
Liability Derivatives | 3,334 | $4,618 |
Minimum | Derivatives designated as hedging instruments | ||
Derivative contracts | ||
Period over which gains and losses are reclassified to earnings | 10 years | |
Maximum | Derivatives designated as hedging instruments | ||
Derivative contracts | ||
Period over which gains and losses are reclassified to earnings | 15 years |
Derivative_Instruments_Hedging3
Derivative Instruments, Hedging Activities and Fair Value (Details 2) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Effect of derivative instruments | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCIâ€) on Derivative - Effective Portion | $9,096 | ($4,349) | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income - Effective Portion | 1 | -2 | ||
Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portion and Amount Excluded from Effectiveness Testing | 30,742 | -1,574 | ||
Foreign currency forward exchange contracts | ||||
Effect of derivative instruments | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCIâ€) on Derivative - Effective Portion | 475 | 11 | ||
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 | 1 | -2 | ||
Derivatives Not Designated as Hedging Instruments | ||||
Amount of Gain (Loss) Recognized in Income on Derivative for the Three Months Ended March 31 (b) | 4,755 | [1] | 1,556 | [1] |
Cross-currency interest rate swaps | ||||
Effect of derivative instruments | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCIâ€) on Derivative - Effective Portion | 8,621 | -4,360 | ||
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 | $30,742 | [2] | ($1,574) | [2] |
[1] | These gains offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures. | |||
[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 | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Foreign Currency Derivatives | |||
Pre-tax net gains (losses) on certain loans designated as hedges of net investments in foreign subsidiaries | $3,100,000 | $200,000 | |
Foreign currency forward exchange contracts | |||
Foreign Currency Derivatives | |||
U.S. Dollar Equivalent | 486,867,000 | 468,822,000 | |
Recognized Gain (Loss) | 3,047,000 | -133,000 | |
Foreign currency forward exchange contracts | British pounds sterling | Sell | |||
Foreign Currency Derivatives | |||
U.S. Dollar Equivalent | 163,000 | 37,943,000 | |
Recognized Gain (Loss) | 4,000 | 179,000 | |
Foreign currency forward exchange contracts | British pounds sterling | Buy | |||
Foreign Currency Derivatives | |||
U.S. Dollar Equivalent | 2,138,000 | 2,783,000 | |
Recognized Gain (Loss) | -46,000 | -4,000 | |
Foreign currency forward exchange contracts | Euros | Sell | |||
Foreign Currency Derivatives | |||
U.S. Dollar Equivalent | 230,113,000 | 193,370,000 | |
Recognized Gain (Loss) | 1,473,000 | 2,993,000 | |
Foreign currency forward exchange contracts | Euros | Buy | |||
Foreign Currency Derivatives | |||
U.S. Dollar Equivalent | 210,841,000 | 194,084,000 | |
Recognized Gain (Loss) | 810,000 | -3,767,000 | |
Foreign currency forward exchange contracts | Other currencies | Sell | |||
Foreign Currency Derivatives | |||
U.S. Dollar Equivalent | 35,657,000 | 12,641,000 | |
Recognized Gain (Loss) | 840,000 | 439,000 | |
Foreign currency forward exchange contracts | Other currencies | Buy | |||
Foreign Currency Derivatives | |||
U.S. Dollar Equivalent | 7,955,000 | 28,001,000 | |
Recognized Gain (Loss) | ($34,000) | $27,000 |
Derivative_Instruments_Hedging5
Derivative Instruments, Hedging Activities and Fair Value (Details 4) (Designated as hedging instrument, USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Maturing 2018 | |
Derivatives Designated as Hedging Instruments | |
Contractual Amount | $250,000 |
Maturing 2020 | |
Derivatives Designated as Hedging Instruments | |
Contractual Amount | 220,000 |
Maturing 2016 through 2017 | |
Derivatives Designated as Hedging Instruments | |
Contractual Amount | $8,200 |
Derivative_Instruments_Hedging6
Derivative Instruments, Hedging Activities and Fair Value (Details 5) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Unit Adjustment Liability | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance at beginning of period | $93,762 | $106,343 | |||
Payments | -5,580 | -5,580 | |||
Change in fair value to the unit adjustment liability | 2,245 | [1] | 2,546 | [1] | |
Balance at end of period | 90,427 | 103,308 | [2] | ||
Fair value measurements recurring | Level 2 | |||||
Assets | |||||
Foreign currency forward exchange contracts | 6,381 | 4,485 | |||
Cross-currency interest rate swaps | 90,541 | 52,989 | |||
Liabilities | |||||
Foreign currency forward exchange contracts | 3,334 | 4,618 | |||
Cross-currency interest rate swaps | $17 | $2,599 | |||
[1] | See Note 6, Equity Method Investments, for additional information related to the unit adjustment liability. | ||||
[2] | Does not total due to rounding. |
Derivative_Instruments_Hedging7
Derivative Instruments, Hedging Activities and Fair Value (Details 6) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Long-term debt, including current maturities | ||
Fair value of long-term debt | $927.50 | $885 |
Carrying value of long-term debt | $900.20 | $854.90 |
Review_of_Operations_by_Segmen2
Review of Operations by Segment (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operations by segment | ||
Total revenues from continuing operations | $451,579 | $512,483 |
Total operating income from continuing operations | 38,881 | 32,227 |
Total Depreciation and Amortization | 39,891 | 44,835 |
Total Capital Expenditures | 31,630 | 39,839 |
Interest income | 256 | 297 |
Interest expense | -11,884 | -11,421 |
Change in fair value to unit adjustment liability | -2,245 | -2,546 |
Income from continuing operations before income taxes and equity income | 25,008 | 18,557 |
Total reportable segments | ||
Operations by segment | ||
Total operating income from continuing operations | 49,243 | 44,719 |
Harsco Metals & Minerals Segment | ||
Operations by segment | ||
Total revenues from continuing operations | 291,198 | 352,822 |
Total operating income from continuing operations | 10,583 | 22,649 |
Total Depreciation and Amortization | 34,891 | 40,701 |
Total Capital Expenditures | 21,828 | 37,741 |
Harsco Industrial | ||
Operations by segment | ||
Total revenues from continuing operations | 98,803 | 102,100 |
Total operating income from continuing operations | 17,027 | 16,571 |
Total Depreciation and Amortization | 1,287 | 1,202 |
Total Capital Expenditures | 7,221 | 643 |
Harsco Rail Segment | ||
Operations by segment | ||
Total revenues from continuing operations | 61,578 | 57,561 |
Total operating income from continuing operations | 21,633 | 5,499 |
Total Depreciation and Amortization | 1,556 | 1,419 |
Total Capital Expenditures | 537 | 886 |
Corporate | ||
Operations by segment | ||
Total operating income from continuing operations | -10,362 | -12,492 |
Total Depreciation and Amortization | 2,157 | 1,513 |
Total Capital Expenditures | $2,044 | $569 |
Other_Income_Details
Other Income (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Other Income and Expenses [Abstract] | ||||
Net gains | ($3,790) | ($2,358) | ||
Foreign currency gains related to Harsco Rail Segment advances on contracts | -10,940 | 0 | ||
Other | 1,525 | [1] | 1,702 | [1] |
Other income | ($13,205) | ($656) | ||
[1] | Other includes employee termination benefit costs and costs to exit activities that are not directly related to the restructuring programs detailed in Note 18, Restructuring Programs. |
Components_of_Accumulated_Othe2
Components of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | ($532,256) | ($370,615) | ||
Other comprehensive income (loss) before reclassifications | 3,928 | -3,930 | ||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 5,065 | 4,101 | ||
Other comprehensive income (loss) from equity method investee | -4,976 | -281 | ||
Amounts reclassified from accumulated other comprehensive loss in connection with the asset impairment loss recognized in the Infrastructure Transaction | -1,447 | |||
Total other comprehensive income (loss) | 4,017 | -1,557 | ||
Less: Other comprehensive loss attributable to noncontrolling interests | 764 | 300 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | 4,781 | -1,257 | ||
Ending balance | -527,475 | -371,872 | ||
Cumulative Foreign Exchange Translation Adjustments | ||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | -39,938 | 6,110 | ||
Other comprehensive income (loss) before reclassifications | -23,653 | [1] | 1,090 | [1] |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | ||
Other comprehensive income (loss) from equity method investee | -5,189 | -913 | ||
Amounts reclassified from accumulated other comprehensive loss in connection with the asset impairment loss recognized in the Infrastructure Transaction | -1,447 | |||
Total other comprehensive income (loss) | -28,842 | -1,270 | ||
Less: Other comprehensive loss attributable to noncontrolling interests | 754 | 300 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | -28,088 | -970 | ||
Ending balance | -68,026 | 5,140 | ||
Effective Portion of Derivatives Designated as Hedging Instruments | ||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | -9,025 | -7,023 | ||
Other comprehensive income (loss) before reclassifications | 7,955 | [2] | -3,964 | [2] |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 1 | 1 | ||
Other comprehensive income (loss) from equity method investee | -382 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss in connection with the asset impairment loss recognized in the Infrastructure Transaction | 0 | |||
Total other comprehensive income (loss) | 7,574 | -3,963 | ||
Less: Other comprehensive loss attributable to noncontrolling interests | 10 | 0 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | 7,584 | -3,963 | ||
Ending balance | -1,441 | -10,986 | ||
Cumulative Unrecognized Actuarial Losses on Pension Obligations | ||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | -483,278 | -369,682 | ||
Other comprehensive income (loss) before reclassifications | 19,634 | [1] | -1,051 | [1] |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 5,064 | 4,100 | ||
Other comprehensive income (loss) from equity method investee | 595 | 632 | ||
Amounts reclassified from accumulated other comprehensive loss in connection with the asset impairment loss recognized in the Infrastructure Transaction | 0 | |||
Total other comprehensive income (loss) | 25,293 | 3,681 | ||
Less: Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | 25,293 | 3,681 | ||
Ending balance | -457,985 | -366,001 | ||
Unrealized Loss on Marketable Securities | ||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | -15 | -20 | ||
Other comprehensive income (loss) before reclassifications | -8 | -5 | ||
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | ||
Other comprehensive income (loss) from equity method investee | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss in connection with the asset impairment loss recognized in the Infrastructure Transaction | 0 | |||
Total other comprehensive income (loss) | -8 | -5 | ||
Less: Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | -8 | -5 | ||
Ending balance | ($23) | ($25) | ||
[1] | Principally foreign currency fluctuation. | |||
[2] | Net change from periodic revaluations. |
Components_of_Accumulated_Othe3
Components of Accumulated Other Comprehensive Income (Loss) Reclassifications (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, general and administrative expenses | $63,902 | $66,794 | ||
Income from continuing operations before income taxes and equity income | -25,008 | -18,557 | ||
Income tax expense | 12,855 | 5,311 | ||
Net income | -15,829 | -11,613 | ||
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 income | 5,534 | [1] | 4,459 | [1] |
Income tax expense | -470 | [1] | -359 | [1] |
Net income | 5,064 | [1] | 4,100 | [1] |
Amount Reclassified from Accumulated Other Comprehensive Loss | Actuarial losses | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, general and administrative expenses | 3,947 | [1],[2] | 2,839 | [1],[2] |
Cost of services and products sold | 1,518 | [1],[2] | 1,552 | [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 | 31 | [1],[2] | 23 | [1],[2] |
Cost of services and products sold | 38 | [1],[2] | 45 | [1],[2] |
Amount Reclassified from Accumulated Other Comprehensive Loss | Effective Portion of Derivatives Designated as Hedging Instruments | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of services and products sold | 1 | [1] | 2 | [1] |
Income tax expense | 0 | [1] | -1 | [1] |
Net income | $1 | [1] | $1 | [1] |
[1] | Amounts in parentheses indicate credits to profit/loss | |||
[2] | These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See Note 10, Employee Benefit Plans, for additional details. |
Restructuring_Programs_Details
Restructuring Programs (Details) (Harsco Metals & Minerals Segment, Harsco Metals & Minerals Improvement Plan (Project Orion), USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Restructuring accrual related activity | |
Accrual at December 31 2014 | $7,668,000 |
Cash Expenditures | -1,590,000 |
Foreign Currency Translation | -120,000 |
Accrual at March 31 2015 | 5,958,000 |
Other Restructuring | |
Restructuring Cost and Reserve [Line Items] | |
Compensation savings, annualized basis | 37,000,000 |
Employee Termination Benefit Costs | |
Restructuring accrual related activity | |
Accrual at December 31 2014 | 7,668,000 |
Cash Expenditures | -1,590,000 |
Foreign Currency Translation | -120,000 |
Accrual at March 31 2015 | $5,958,000 |
Restructuring_Programs_Details1
Restructuring Programs (Details 2) (Restructuring Program 2011 and 2012, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Restructuring Program 2011 and 2012 | ||
Restructuring Cost and Reserve [Line Items] | ||
Remaining accrual for restructuring programs | $2,200 | $2,400 |