| 29 © 2013 Harsco Corporation, All Rights Reserved. Non-GAAP Reconciliation Adjusted Return on Invested Capital (a) (in thousands) 2007 2008 2009 2010 2011 2012 Net income (loss), as reported 299,492 $ 240,945 $ 118,777 $ 6,754 $ (11,510) $ (254,612) $ Special items: - Goodwill impairment charge - Harsco Infrastructure - - - - - 265,038 - Restructuring charges (b) - - - 84,440 100,780 94,498 - Charges to exit Harsco Metals & Minerals contract (c) - - - - - 7,645 - Gains associated with exited countries (d) - - - - - (10,906) - Former CEO separation expense - - - - �� - 4,125 - Gains on pension curtailment - - - - - (1,716) - One-time Harsco Rail benefit (e) - - - - (7,966) - - Taxes on above special items - - - (21,806) (14,171) (9,070) - Non-cash tax charge (f) - - - - 36,833 - Adjusted net income 299,492 $ 240,945 $ 118,777 $ 69,388 $ 103,966 $ 95,002 $ Total equity 1,566,119 $ 1,413,676 $ 1,509,834 $ 1,468,145 $ 1,219,918 $ 861,624 $ Plus long-term debt 1,012,087 891,817 901,734 849,724 853,800 957,428 Total capital 2,578,206 $ 2,305,493 $ 2,411,568 $ 2,317,869 $ 2,073,718 $ 1,819,052 $ Adjusted return on invested capital 11.6% 10.5% 4.9% 3.0% 5.0% 5.2% (a) (b) (c) (d) (e) (f) Year Ended December 31 Reduction of estimated costs related to the first phase of Harsco Rail's large China order. The Company's management believes return on invested capital excluding special items, a non-GAAP financial measure, is meaningful to investors in evaluating the efficiency and effectiveness of the Company's long-term capital investments. Exclusion of special items permits evaluation and comparison of results for the Company's core business operations, and it is on this basis that management internally assesses the Company's performance. This measure should be considered in addition to, rather than as a substitute for, other information provided in accordance with GAAP. Non-cash tax charge against U.K. deferred tax assets. Charges resulting from the Company's previously announced Fourth Quarter 2010 Harsco Infrastructure and 2011/2012 Restructuring Programs. Charges as a result of exiting an underperforming contract in Harsco Metals & Minerals. Non-cash gains related to the closure of operations in certain countries in Harsco Infrastructure. |