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Business Address350 POPLAR CHURCH ROADCAMP HILL PA 170117177637064

Mailing Address350 POPLAR CHURCH ROADCAMP HILL PA 17011

SECURITIES AND EXCHANGE COMMISSION

FORM 10-KAnnual report pursuant to section 13 and 15(d)

Filing Date: 2013-02-26 | Period of Report: 2012-12-31SEC Accession No. 0000045876-13-000041

(HTML Version on secdatabase.com)

FILERHARSCO CORPCIK:45876| IRS No.: 231483991 | State of Incorp.:DE | Fiscal Year End: 1231Type: 10-K | Act: 34 | File No.: 001-03970 | Film No.: 13643032SIC: 3440 Fabricated structural metal products

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UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31, 2012

ORo TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission FileNumber 001-03970

HARSCO CORPORATION(Exact name of registrant as specified in its charter)

Delaware(State or other jurisdiction of incorporation or organization)

23-1483991(I.R.S. employer identification number)

350 Poplar Church Road, Camp Hill, Pennsylvania(Address of principal executive offices)

17011(Zip Code)

Registrant's telephone number, including area code 717-763-7064

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Name of each exchange on which registered

Common stock, par value $1.25 per sharePreferred stock purchase rights

New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: NONE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ý No o

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No ý

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to besubmitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant wasrequired to submit and post such files). Yes ý No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not becontained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment tothis Form 10-K. ý

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of"large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý Accelerated filer o Non-accelerated filer o(Do not check if a

smaller reporting company)

Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No ý

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The aggregate market value of the Company's voting stock held by non-affiliates of the Company as of June 30, 2012 was $1,641,906,000.

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date:

Class Outstanding at January 31, 2013

Common stock, par value $1.25 per share 80,648,786

DOCUMENTS INCORPORATED BY REFERENCE

Selected portions of the 2013 Proxy Statement are incorporated by reference into Part III of this Report.

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HARSCO CORPORATIONFORM 10-K

INDEX

Page

PART IItem 1. Business. 1Item 1A. Risk Factors. 6Item 1B. Unresolved Staff Comments. 14Item 2. Properties. 15Item 3. Legal Proceedings. 16Item 4. Mine Safety Disclosures. 16Supplementary

Item.Executive Officers of the Registrant (Pursuant to Instruction 3 to Item 401(b) of Regulation S-K).

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PART IIItem 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of

Equity Securities.18

Item 6. Selected Financial Data. 19Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. 20Item 7A. Quantitative and Qualitative Disclosures About Market Risk. 44Item 8. Financial Statements and Supplementary Data. 45Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure. 96Item 9A. Controls and Procedures. 96Item 9B. Other Information. 96PART IIIItem 10. Directors, Executive Officers and Corporate Governance. 97Item 11. Executive Compensation. 97Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder

Matters.97

Item 13. Certain Relationships and Related Transactions, and Director Independence. 97Item 14. Principal Accounting Fees and Services. 97PART IVItem 15. Exhibits and Financial Statement Schedules. 98SIGNATURES 104

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PART I

Item 1. Business.

(a) General Development of Business

Harsco Corporation (the "Company") is a diversified, multinational provider of industrial services and engineered products servingglobal industries that are fundamental to worldwide economic growth and infrastructure development. The Company's operations fallinto four reportable segments: Harsco Metals & Minerals, Harsco Infrastructure, Harsco Rail and Harsco Industrial. The Company haslocations in approximately 50 countries, including the United States. The Company was incorporated in 1956.

The Company's executive offices are located at 350 Poplar Church Road, Camp Hill, Pennsylvania 17011 and the Company's maintelephone number is (717) 763-7064. The public may read and copy any material we file with the Securities and Exchange Commission("SEC") at their Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on theoperation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The company's Annual Reports on Form 10-K,Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to such reports filed with or furnished to the SECunder Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, are available free of charge on the SEC's Internetwebsite at www.sec.gov and on the Company's Internet website at www.harsco.com as soon as reasonably practicable after such reportsare electronically filed with the SEC. The information posted on our website is not incorporated into our SEC filings.

The Company's principal lines of business and related principal business drivers are as follows:

Principal Lines of Business Principal Business Drivers

� Outsourced, on-site services to steel mills and other metalsproducers

� Global metals production and capacity utilization

� � Outsourcing of services by metals producers� Demand for high-value specialty steel and ferro alloys

Resource recovery technologies for the re-use of industrialwaste stream by-products (environmental services)

� Demand for environmental solutions for metals and mineralswaste streams

� Industrial abrasives and roofing granules � Industrial and infrastructure surface preparation and restoration� Residential roofing shingles

� Engineered scaffolding, concrete forming and shoring, andother access-related services, rentals and sales

� Demand for infrastructure and non-residential construction

� Industrial plant maintenance requirements� Railway track maintenance services and equipment � Global railway track maintenance-of-way capital spending

� Outsourcing of track maintenance and new track constructionby railroads

� Industrial grating products � Industrial plant and warehouse construction and expansion� Off-shore drilling and new rig construction

� Air-cooled heat exchangers � Demand for natural gas processing and compression� Heat transfer products � Demand for commercial and institutional boilers and water

heaters

The Company reports segment information using the "management approach," based on the way management organizes and reports thesegments within the enterprise for making operating decisions and assessing performance. The Company's reportable segments areidentified based upon differences in products, services and markets served. These segments and the types of products and servicesoffered are more fully described in section (c) below.

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In 2012, 2011 and 2010, the United States contributed total revenues of $1.1 billion, $1.1 billion and $1.0 billion, equal to 36%, 33%and 33% of total revenues, respectively. The Company's euro-currency countries contributed total revenues of $0.8 billion or 25% oftotal revenues each year in 2012, 2011 and 2010. The United Kingdom contributed total revenues of $0.3 billion in 2012 and $0.4billion in both 2011 and 2010 equal to 11%, 12% and 14% of total revenues, respectively. One customer, ArcelorMittal, representedapproximately 9% of the Company's revenues during 2012, 11% in 2011 and 12% in 2010. There were no significant inter-segmentrevenues.

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(b) Financial Information about Segments

Financial information concerning industry segments is included in Note 15, Information by Segment and Geographic Area, to theConsolidated Financial Statements under Part II, Item 8, "Financial Statements and Supplementary Data," which information isincorporated herein by reference.

(c) Narrative Description of Business

(1) A narrative description of the businesses by reportable segment is as follows:

Harsco Metals & Minerals Segment—46% of consolidated revenues for 2012The Harsco Metals & Minerals Segment is one of the world's largest providers of on-site, outsourced services to the global metalsindustries. The Metals business provides its services and solutions on a long-term contract basis, supporting each stage of the metal-making process from initial raw material handling to post-production slag processing and metal recovery. The Metals business' multi-year contracts had estimated future revenues of $4.9 billion at expected production levels at December 31, 2012. This provides theCompany with a substantial base of long-term revenues. Approximately 60% of these revenues are expected to be recognized byDecember 31, 2016. The remaining revenues are expected to be recognized principally between January 1, 2017 and December 31,2021.

The Minerals business extracts high-value metallic content from stainless steel by-products and also specializes in the development ofminerals technologies for commercial applications, including agriculture fertilizers. The Minerals business also produces industrialabrasives and roofing granules from power-plant utility coal slag at a number of locations throughout the United States. HarscoMinerals' BLACK BEAUTY® abrasives are used for industrial surface preparation, such as rust removal and cleaning of bridges, shiphulls and various structures. Roofing granules are sold to residential roofing shingle manufacturers, primarily for the replacementroofing market. This business is one of the United States' largest producers of slag abrasives and residential roofing granules.

As part of the Segment's initiatives to develop new products and services, in particular environmental solutions, the Segment'stechnology office is involved with several initiatives and technology alliances focused on developing greater environmentalsustainability in steel making, through the recovery of resources from production by-products and waste streams.

The Harsco Metals & Minerals Segment operates in approximately 35 countries. In 2012 and 2011, this Segment's revenues weregenerated in the following regions:

Percentage of Revenues

Region 2012 2011

Western Europe 39% 39%North America 28% 26%Latin America (a) 17% 16%Asia-Pacific 8% 7%Middle East and Africa 4% 8%Eastern Europe 4% 4%

(a) Including Mexico.

For 2012, 2011 and 2010, the Harsco Metals & Minerals Segment's percentage of the Company's consolidated revenues were 46%, 48%and 48%, respectively.

Harsco Infrastructure Segment—31% of consolidated revenues for 2012The Harsco Infrastructure Segment is one of the world's most complete global organizations for the rental and sale of engineeredscaffolding, shoring, concrete forming and other access-related solutions for major construction projects as well as industrial plantmaintenance programs. The Segment operates from a network of branches throughout the world, including North America, LatinAmerica, Europe, the Gulf Region of the Middle East, Africa and Asia-Pacific using highly mobile equipment that is controlled via aglobal inventory system. The Segment's branch network has been reduced as a result of the Company's restructuring programs from 217operating branches at the beginning of 2010 to approximately 130 operating branches at December 31, 2012. Major services include theprovision of concrete shoring and forming systems; scaffolding for non-residential and infrastructure construction projects and industrial

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maintenance requirements; and a variety of other infrastructure services including project engineering and design, equipment erectionand dismantling services, industrial insulation and painting services and equipment sales.

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The Company's infrastructure services are provided through branch locations in approximately 30 countries plus export salesworldwide. In 2012 and 2011, this Segment's revenues were generated in the following regions:

Percentage of Revenues

Region 2012 2011

Western Europe 55% 54%North America 18% 19%Middle East and Africa 9% 8%Asia-Pacific 7% 6%Latin America (a) 6% 5%Eastern Europe 5% 8%

(a) Including Mexico.

For 2012, 2011 and 2010, the Harsco Infrastructure Segment's percentage of the Company's consolidated revenues were 31%, 34% and34%, respectively.

Harsco Rail Segment—11% of consolidated revenues for 2012The Harsco Rail Segment is a global provider of equipment and services for the maintenance, repair and construction of railway track.The Segment's equipment and services support private and government-owned railroads and urban transit systems worldwide.

The Segment's rail products are produced in three countries and products and services are provided worldwide. In 2012, 2011 and 2010,export product sales from the United States for the Harsco Rail Segment were $177.9 million, $119.4 million and $134.1 million,respectively. Total international revenues represented 58%, 40% and 43% of this Segment's revenues for the years ended December 31,2012, 2011 and 2010, respectively.

For 2012, 2011 and 2010, the Harsco Rail Segment's percentage of the Company's consolidated revenues were 11%, 9% and 10%,respectively.

Harsco Industrial Segment—12% of consolidated revenues for 2012This Segment includes the Harsco Industrial IKG, Harsco Industrial Air-X-Changers and Harsco Industrial Patterson-Kelley businesses.Approximately 90% of this Segment's revenues originate in North America.

Harsco Industrial IKG manufactures a varied line of industrial grating products at several plants in the United States and internationalplants located in Mexico and China. These products include a full range of bar grating configurations, which are used mainly inindustrial flooring, as well as safety and security applications in the energy, paper, chemical, refining and processing industries.

Harsco Industrial Air-X-Changers is a leading supplier of custom-designed and manufactured air-cooled heat exchangers for the naturalgas industry from plants in the United States and Australia. Harsco Industrial Air-X-Changers' heat exchangers are the primaryapparatus used to condition natural gas during recovery, compression and transportation from underground reserves through the majorpipeline distribution channels.

Harsco Industrial Patterson-Kelley is a leading manufacturer of energy-efficient heat transfer products such as boilers and water heatersfor commercial and institutional applications.

For 2012, 2011 and 2010, this Segment's percentage of the Company's consolidated revenues were 12%, 9% and 8%, respectively.

(1)(i) The products and services of the Company are generated through a number of product groups. These product groups are morefully discussed in Note 15, Information by Segment and Geographic Area, to the Consolidated Financial Statements under Part II,Item 8, "Financial Statements and Supplementary Data." The product groups that contributed 10% or more as a percentage ofconsolidated revenues in any of the last three fiscal years are set forth in the following table:

Percentage of Consolidated Revenues

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Product Group 2012 2011 2010

Outsourced, on-site services to steel mills and other metals producers 40% 41% 41%Engineered scaffolding, concrete forming and shoring, and other access-related services, rentals and sales 31% 34% 34%Railway track maintenance services and equipment 12% 9% 10%

(1)(ii) New products and services are added from time to time; however, in 2012, 2011 and 2010 none required the investment of amaterial amount of the Company's assets.

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(1)(iii) The manufacturing requirements of the Company's operations are such that no unusual sources of supply for raw materials arerequired. The raw materials used by the Company for its limited product manufacturing include principally steel and, to a lesser extent,aluminum, which are usually readily available. The profitability of the Company's manufactured products is affected by changingpurchase prices of steel and other materials and commodities.

(1)(iv) While the Company has a number of trademarks, patents and patent applications, it does not consider that any material part of itsbusiness is dependent upon them.

(1)(v) The Company furnishes products, materials and certain industrial services within the Harsco Infrastructure and the HarscoIndustrial Segments that are seasonal in nature. As a result, the Company's revenues and results of operations for the first quarter endingMarch 31 are normally lower than the second, third and fourth quarters. Additionally, the Company has historically generated themajority of its cash flows in the second half of the year. This is a result of normally higher income during the latter part of the year. TheCompany's historical revenue patterns and cash provided by operating activities are as follows:

Historical Pattern of Revenue from Continuing Operations

(In millions) 2012 2011 2010 2009 2008

First quarter $ 752.3 $ 779.1 $ 742.4 $ 696.9 $ 987.8Second quarter 770.6 875.1 786.5 777.0 1,099.6Third quarter 756.8 855.9 752.4 744.2 1,044.9Fourth quarter 766.3 792.7 757.4 772.5 835.5

Totals $ 3,046.0 $ 3,302.7 (a) $ 3,038.7 $ 2,990.6 $ 3,967.8(a) Does not total due to rounding.

Historical Pattern of Cash Provided (Used) by Operations

(In millions) 2012 2011 2010 2009 2008

First quarter $ (1.4) $ 13.1 $ 30.1 $ 39.6 $ 32.0Second quarter 37.2 53.7 95.6 116.7 178.5Third quarter 75.6 123.2 110.3 120.4 171.6Fourth quarter 87.5 108.7 165.4 157.8 192.2

Totals $ 198.9 $ 298.8 (a) $ 401.4 $ 434.5 $ 574.3(a) Does not total due to rounding.

(1)(vi) The practices of the Company relating to working capital are similar to those practices of other industrial service providers ormanufacturers servicing both domestic and international industrial customers and commercial markets. These practices include thefollowing:

• Standard accounts receivable payment terms of 30 to 60 days, with progress or advance payments required for certain long-lead-time or large orders. Payment terms are slightly longer in certain international markets.

• Standard accounts payable payment terms of 30 to 90 days.• Inventories are maintained in sufficient quantities to meet forecasted demand. Due to the time required to manufacture certain

railway track maintenance equipment to customer specifications, inventory levels of this business tend to increase for anextended period of time during the production phase and then decline when the equipment is sold.

(1)(vii) One customer, ArcelorMittal, represented approximately 9% of the Company's revenues in 2012, 11% in 2011 and 12% in 2010under individual contracts at separate mill locations.

The Harsco Metals & Minerals Segment is dependent largely on the global steel industry and in 2012, 2011 and 2010, there were twocustomers that each provided in excess of 10% of this Segment's revenues under multiple long-term contracts at numerous mill sites.ArcelorMittal was one of those customers in 2012, 2011 and 2010. The loss of any one of the contracts would not have a materialadverse effect upon the Company's financial position or cash flows; however, it could have a significant effect on quarterly or annualresults of operations. Additionally, these customers have significant accounts receivable balances. Further consolidation in the global

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steel industry is possible. Should transactions occur involving some of the Company's larger steel industry customers, it would result inan increase in concentration of revenues and credit risk for the Company. If a large customer were to experience financial difficulty, orfile for bankruptcy protection, it could adversely impact the Company's income, cash flows and asset valuations. As part of its creditrisk management practices, the Company closely monitors the credit standing and accounts receivable position of its customer base.One of the Company's large steel mill customers in Europe has filed for receivership. The Company has less than $10 million ofreceivables with this customer

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and believes that these amounts are collectible. Should there be an adverse change in the Company's view on collectability, however,there could be a charge against income in future periods.

(1)(viii) At December 31, 2012, the Company's metals services contracts had estimated future revenues of $4.9 billion at expectedproduction levels, compared with $3.7 billion at December 31, 2011. This is primarily due to a number of new contracts and contractextensions signed with various customers during 2012. At December 31, 2012, the Harsco Rail Segment had an estimated order backlogof $180.3 million, compared with $261.6 million at December 31, 2011. This is primarily due to the shipment of orders during 2012,partially offset by new orders. In addition, at December 31, 2012, the Company had an estimated order backlog of $98.4 million in itsHarsco Industrial Segment, compared with $104.6 million at December 31, 2011. The decrease from December 31, 2011 is dueprincipally to decreased demand in natural gas markets. Order backlog for scaffolding, shoring and forming services; and for roofinggranules and slag abrasives is excluded from the above amounts. These amounts are generally not quantifiable due to the short orderlead times for certain services, the nature and timing of the products and services provided and equipment rentals with the ultimatelength of the rental period unknown.

At December 31, 2012, approximately $23 million or 8% of the Company's manufactured products order backlog is not expected to befilled in 2013. The majority of this backlog is expected to be filled in 2014. This is exclusive of long-term metals industry servicescontracts, infrastructure-related services, roofing granules and industrial abrasives products, and minerals and metal recoverytechnologies services.

(1)(ix) At December 31, 2012, the Company had no material contracts that were subject to renegotiation of profits or termination at theelection of the United States Government.

(1)(x) The Company's competitive environment is complex because of the wide diversity of services and products it provides and theglobal breadth and depth of markets served. No single service provider or manufacturer competes with the Company with respect to allservices provided or products manufactured and sold. In general, on a global basis, the Company's segments are among the marketleaders in their respective sectors and compete with a range of global, regional and local businesses of varying size and scope.

Harsco Metals & Minerals Segment—This Segment provides outsourced on-site services to the global metals industries in more than 35countries, with its largest operations focused in the United Kingdom, the United States and Brazil. The Company believes it is one ofthe world's largest providers of on-site, outsourced services to the global metals industries. This Segment's key competitive factors areinnovative resource recovery solutions, significant industry experience, technology, safety performance, service and value. ThisSegment competes principally with one smaller publically traded provider and with a number of privately-held regional or localbusinesses for services outsourced by its customers. Additionally, due to the nature of this Segment's services, it encounters a certaindegree of "competition" from potential new customers' desire to perform similar services themselves instead of using an outsourcedsolution.

Harsco Infrastructure Segment—This Segment provides rental and sales of engineered scaffolding, shoring, concrete forming and otheraccess-related solutions through a global branch network comprising approximately 30 countries. As part of the 2011/2012Restructuring Program, this Segment exited certain underperforming markets in 2012. The Company believes it is one of the world'smost complete global organizations for infrastructure-related access and concrete forming solutions. Its largest operations are based inthe United States, the Netherlands and the United Kingdom. The Segment's key competitive factors are engineering expertise, customerservice, on-time delivery, product quality, safety performance, global availability of mobile equipment and value. Primary competitorsfor forming and shoring in the United States, Europe and globally are a limited number of privately-held global providers. Competitionin the scaffolding market is more fragmented and regionally focused with a large number of local competitors, principally competing forsmaller commercial construction projects, and a limited number of national competitors, principally competing in the industrial marketsand for larger construction projects.

Harsco Rail Segment—This Segment manufactures and sells highly-engineered railway track maintenance equipment producedprimarily in the United States for customers throughout the world. Additionally, this Segment provides railway track maintenanceservices principally in the United States and the United Kingdom. This Segment's key competitive factors are quality, technology,customer service and value. Primary competitors for both products and services are privately-held global businesses as well as certainregional competitors.

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Harsco Industrial Segment—This Segment includes manufacturing businesses located principally in the United States with anincreasing focus on international growth. During 2011, strategic venture operations were established in China and Australia. Keycompetitive factors include quality, value, technology and energy-efficiency. Primary competitors are U.S.-based manufacturers ofsimilar products.

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(1)(xi) The Company's expense for research and development activities was $9.1 million, $6.0 million and $4.3 million in 2012, 2011and 2010, respectively. This excludes technology development and engineering costs classified in cost of services and products sold orselling, general and administrative expense. For additional information regarding research and development activities, see the Researchand Development section included in Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results ofOperations."

(1)(xii) The Company has become subject to, as have others, stringent air and water quality control legislation. In general, the Companyhas not experienced substantial difficulty complying with these environmental regulations, and does not anticipate making any materialcapital expenditures for environmental control facilities. While the Company expects that environmental regulations may expand, andthat its expenditures for air and water quality control will continue, it cannot predict the effect on its business of such expandedregulations. For additional information regarding environmental matters see Note 11, Commitments and Contingencies, to theConsolidated Financial Statements included in Part II, Item 8, "Financial Statements and Supplementary Data."

(1)(xiii) At December 31, 2012, the Company had approximately 18,500 employees.

(d) Financial Information about Geographic Areas

Financial information concerning international and domestic operations is included in Note 15, Information by Segment andGeographic Area, to the Consolidated Financial Statements under Part II, Item 8, "Financial Statements and Supplementary Data,"which information is incorporated herein by reference. Export sales from the United States totaled $214.4 million, $160.7 million and$156.5 million in 2012, 2011 and 2010, respectively.

(e) Available Information

Information is provided in Part I, Item 1 (a), "General Development of Business."

Item 1A. Risk Factors.

Set forth below are risks and uncertainties that could materially and adversely affect the Company's results of operations, financialcondition, liquidity and cash flows. The risks are not the only risks that the Company faces. The Company's business operations couldalso be affected by other factors not presently known to the Company or factors that the Company currently does not consider to bematerial.

The Company is subject to a variety of market risks, economic uncertainties related to the ongoing global financial crisis andpotential disruptions of its access to credit.In the normal course of business, the Company is routinely subjected to a variety of risks. In addition to the market risk associated withinterest rate and currency movements on outstanding debt and non-market U.S. dollar-denominated assets and liabilities, other examplesof risk include customer concentration in the Harsco Metals & Minerals Segment and Harsco Rail Segment; collectability ofreceivables; volatility of the financial markets and their effect on customer liquidity and defined benefit pension plans; and globaleconomic and political conditions.

The global financial markets experienced extreme disruption in the last half of 2008 that has continued to a lesser extent through 2012,including, among other things, the threat of credit default by several foreign governments, especially in Europe and the Middle East;severely diminished liquidity and credit availability for many business entities; declines in consumer confidence; negative economicgrowth; declines in real estate values; increases in unemployment rates; significant volatility in equities; rating agency downgrades anduncertainty about economic stability. Although governments across the globe have taken aggressive actions, including economicstimulus programs and austerity measures, intended to address these difficult market conditions, there can be no assurance that suchactions will successfully address such conditions, in whole or in part. These economic uncertainties affect the Company's businesses in anumber of ways, including making it more difficult to accurately forecast and plan future business activities.

From time to time, disruption in the credit markets has severely restricted access to capital for many companies. When credit marketsdeteriorate, the Company's ability to incur additional indebtedness to fund operations or refinance maturing obligations as they becomedue may be constrained. The Company is unable to predict any duration or severity of disruptions in the credit and financial markets and

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adverse global economic conditions. While these conditions have not impaired the Company's ability to access credit markets andfinance operations, a deterioration of economic conditions could materially and adversely affect the Company's business and results ofoperations. See Liquidity and Capital Resources under Part II, Item 7 "Management's Discussion and Analysis of Financial Conditionand Results of Operations," for further discussion of resources available for cash requirements.

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Negative economic conditions may adversely impact the demand for the Company's products and services, and the ability of theCompany's customers to meet their obligations to the Company on a timely basis. Any disputes with customers could also have anadverse impact on the Company's results of operations and cash flows.Tightening of credit in financial markets may lead businesses to postpone spending, which may impact the Company's customers,causing them to cancel, decrease or delay their existing and future orders with the Company. Declines in economic conditions mayfurther impact the ability of the Company's customers to meet their obligations to the Company on a timely basis and could result inbankruptcy or receivership filings by any of such customers, including significant Harsco customers. If customers are unable to meettheir obligations on a timely basis, or if the Company were unable to collect amounts due from customers that are currently underbankruptcy or receivership protection, it could adversely impact the realizability of receivables, the valuation of inventories and thevaluation of long-lived assets across the Company's businesses. Furthermore, significant Harsco customers may be subject toacquisitions and/or consolidations that negatively impact their ability to meet their obligations to the Company on a timely basis, or atall. Additionally, the Company may be negatively affected by contractual disputes with customers, which could have an adverse impacton the Company's results of operations and cash flows.

If the Company cannot generate future cash flows at a level sufficient to recover the net book value of any of its reporting units, theCompany may be required to record an impairment charge to its earnings.As a result of the Company's goodwill impairment testing, the Company may be required to record future impairment charges to theextent the Company cannot generate future cash flows at a level sufficient to recover the net book value of any of the Company'sreporting units. As a result of the October 1, 2012 annual goodwill impairment test, the Company recorded a $265.0 million goodwillimpairment charge during the fourth quarter of 2012 related to the Harsco Infrastructure Segment. At October 1, 2012, the current fairvalue of the Company's remaining reporting units exceeded their net book value. At December 31, 2012, almost all of the Company'sgoodwill is allocated to the Harsco Metals business unit, which is included in the Harsco Metals & Minerals Segment. The Company'sestimates of fair value are based on assumptions about the future operating cash flows and growth rates of each reporting unit anddiscount rates applied to these cash flows. Based on the uncertainty of future growth rates and other assumptions used to estimategoodwill recoverability, future reductions in the Company's expected cash flows could cause a material non-cash impairment charge ofgoodwill, which could have a material adverse effect on the Company's results of operations and financial condition. See Application ofCritical Accounting Policies under Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results ofOperations" and Note 1, Summary of Significant Accounting Policies and Note 6, Goodwill and Other Intangible Assets, to theConsolidated Financial Statements under Part II, Item 8, "Financial Statements and Supplementary Data," for additional disclosurerelated to these items.

The Company's global presence subjects it to a variety of risks arising from doing business internationally.The Company operates in approximately 50 countries, including the United States. The Company's global footprint exposes it to avariety of risks that may adversely affect the Company's results of operations, financial condition, liquidity and cash flows. Theseinclude, but may not be limited to, the following:

• periodic economic downturns in the countries in which the Company does business;• imposition of or increases in currency exchange controls and hard currency shortages;• customs matters and changes in trade policy or tariff regulations;• changes in regulatory requirements in the countries in which the Company does business;• changes in tax regulations, higher tax rates in certain jurisdictions and potentially adverse tax consequences including

restrictions on repatriating earnings, adverse tax withholding requirements and "double taxation;"• longer payment cycles and difficulty in collecting accounts receivable;• complexities in complying with a variety of U.S. and international laws and regulations;• political, economic and social instability, civil and political unrest, terrorist actions and armed hostilities in the regions or

countries in which the Company does business;• inflation rates in the countries in which the Company does business;• laws in various international jurisdictions that limit the right and ability of subsidiaries to pay dividends and remit earnings to

affiliated companies unless specified conditions are met;• sovereign risk related to international governments that include, but may not be limited to, governments stopping interest

payments or repudiating their debt, nationalizing private businesses or altering foreign exchange regulations; and• uncertainties arising from local business practices, cultural considerations and international political and trade tensions.

If the Company is unable to successfully manage the risks associated with its global business, the Company's results of operations,financial condition, liquidity and cash flows may be negatively impacted.

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The Company has operations in several countries in the Middle East, including Bahrain, Egypt, Israel, Qatar, Saudi Arabia and theUnited Arab Emirates, as well as India, some of which are currently experiencing armed hostilities and civil unrest. Additionally, thesecountries are geographically close to other countries that may have a continued high risk of armed hostilities or civil unrest. During2012, 2011 and 2010, the Company's Middle East operations contributed approximately $6.5 million, $3.0 million and $18.6 million,respectively, to the Company's results of operations.

Exchange rate fluctuations may adversely impact the Company's business.Fluctuations in foreign exchange rates between the U.S. dollar and the more than 40 other currencies in which the Company conductsbusiness may adversely impact the Company's results of operations in any given fiscal period. Approximately 6% and 19% of theCompany's operating income (loss) from continuing operations for 2012 and 2011, respectively, were derived from operations outsidethe United States. More specifically, approximately 25% of the Company's revenues were derived from operations with the euro as theirfunctional currency for both 2012 and 2011. Additionally, approximately 11% and 12% of the Company's revenues were derived fromoperations in the United Kingdom during 2012 and 2011, respectively. Furthermore, approximately 5% and 6% of the Company'srevenues were derived from operations in Brazil for 2012 and 2011, respectively. Given the structure of the Company's revenues andexpenses, an increase in the value of the U.S. dollar relative to the foreign currencies in which the Company earns its revenues generallyhas a negative impact on results of operations. The Company's principal foreign currency exposures are in the European Economic andMonetary Union, the United Kingdom and Brazil.

Compared with the corresponding period in 2011, the average value of major currencies changed as follows in relation to the U.S. dollarduring 2012, impacting the Company's revenues and income:

• British pound sterling weakened by 1%• euro weakened by 8%• Brazilian real weakened by 17%

Compared with exchange rates at December 31, 2011, the value of major currencies at December 31, 2012 changed as follows:

• British pound sterling strengthened by 4%• euro strengthened by 2%• Brazilian real weakened by 10%

The Company's foreign currency exposures increase the risk of volatility in its consolidated financial statements. If the above currencieschange materially in relation to the U.S. dollar, the Company's financial position, results of operations, or cash flows may be materiallyaffected.

To illustrate the effect of foreign currency exchange rate changes in certain key markets of the Company, in 2012 revenues would havebeen approximately 4.0% or $123.0 million higher and operating loss would have been approximately 5.9% or $10.3 million less if theaverage exchange rates for 2011 were utilized. In a similar comparison for 2011, revenues would have been approximately 3.0% or$103.6 million lower and operating income would have been approximately 4.5% or $4.1 million lower if the average exchange ratesfor 2010 were utilized. Currency changes also result in assets and liabilities denominated in local currencies being translated into U.S.dollars at different amounts than at the prior period end. Generally, if the U.S. dollar weakens in relation to currencies in countries inwhich the Company does business, the translated amounts of the related assets and liabilities, and therefore stockholders' equity, wouldincrease. Conversely, if the U.S. dollar strengthens in relation to currencies in countries in which the Company does business, thetranslated amounts of the related assets, liabilities, and therefore stockholders' equity, would decrease.

Although the Company engages in foreign currency forward exchange contracts and other hedging strategies to mitigate foreignexchange risk, hedging strategies may not be successful or may fail to completely offset the risk.

In addition, competitive conditions in the Company's manufacturing businesses may limit the Company's ability to increase productprices in the face of adverse currency movements. Sales of products manufactured in the United States for the domestic and exportmarkets may be affected by the value of the U.S. dollar relative to other currencies. Any long-term strengthening of the U.S. dollarcould depress demand for these products and reduce sales and may cause translation gains or losses due to the revaluation of accountspayable, accounts receivable and other asset and liability accounts. Conversely, any long-term weakening of the U.S. dollar couldimprove demand for these products and increase sales and may cause translation gains or losses due to the revaluation of accountspayable, accounts receivable and other asset and liability accounts.

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Cyclical industry and economic conditions may adversely affect the Company's businesses.The Company's businesses are subject to general economic slowdowns and cyclical conditions in the industries served. In particular:

• The Harsco Metals & Minerals Segment may be adversely impacted by slowdowns in steel mill production, excess capacity,consolidation, bankruptcy or receivership of steel producers or a reversal or slowing of current outsourcing trends in the steelindustry;

• The resource recovery technologies business of the Harsco Metals & Minerals Segment may be adversely impacted byslowdowns in customer production or a reduction in the selling price of its materials, which is market-based and varies basedupon the current fair value of the components being sold. Therefore, the revenue amounts generated from the sale of suchrecycled materials vary based upon the fair value of the commodity components being sold;

• The industrial abrasives and roofing granules business of the Harsco Metals & Minerals Segment may be adversely impactedby reduced home resales or economic conditions that slow the rate of residential roof replacement, or by slowdowns in theindustrial and infrastructure refurbishment industries;

• The Harsco Infrastructure Segment may be adversely impacted by slowdowns in non-residential, multi-dwelling residential orinfrastructure construction and annual industrial and building maintenance cycles;

• The Harsco Rail Segment may be adversely impacted by developments in the railroad industry that lead to lower capitalspending or reduced maintenance spending;

• The air-cooled heat exchangers business of the Harsco Industrial Segment is affected by cyclical conditions present in thenatural gas industry. Therefore, a slowdown in natural gas drilling or production could adversely affect this business;

• The industrial grating products business of the Harsco Industrial Segment may be adversely impacted by slowdowns in non-residential construction and industrial production; and

• Capital constraints and increased borrowing costs may also adversely impact the financial position and operations of theCompany's customers across all business segments. Such customer capital constraints may result in canceled or postponedconstruction projects negatively affecting the Harsco Infrastructure Segment.

Furthermore, realization of deferred tax assets is ultimately dependent on generating sufficient income in future periods to ensurerecovery of those assets. The cyclicality of the Company's industry and adverse economic conditions may negatively impact the futureincome levels that are necessary for the utilization of deferred tax assets.

The seasonality of the Company's business may cause its quarterly results to fluctuate.The Company has historically generated the majority of its cash flows provided by operations in the second half of the year. This is aresult of normally higher income during the second half of the year, as the Company's business tends to follow seasonal patterns. If theCompany is unable to successfully manage the cash flow and other effects of seasonality on the business, its results of operations maysuffer. The Company's historical revenue patterns and net cash provided by operating activities are included in Part I, Item 1,"Business."

The Company may lose customers or be required to reduce prices as a result of competition.The industries in which the Company operates are highly competitive:

• The Harsco Metals & Minerals Segment is sustained mainly through contract renewals and new contract signings. Historically,the Company has a high contract renewal rate. If the Company is unable to renew its contracts at the historical rates orrenewals are at reduced prices, revenue and results of operations may decline. Additionally, the Company has exited certainunderperforming contracts in an effort to improve overall profitability. The Company will continue to evaluate investments toensure returns are consistent with the ongoing strategy of the Company.

• The Harsco Infrastructure Segment rents and sells equipment and provides erection and dismantling services to principally thenon-residential and infrastructure construction and industrial plant maintenance markets. Contracts are awarded based upon theCompany's engineering capabilities, product availability and efficiency, safety record, and the ability to competitively price itsrentals and services. If the Company is unable to consistently provide high-quality products and services at competitive prices,it may lose customers or operating margins may decline due to reduced selling prices.

• The Harsco Rail and Harsco Industrial Segments compete with companies that manufacture similar products bothinternationally and domestically. Certain international competitors export their products into the United States and sell them atlower prices due to lower labor costs and government subsidies for exports. Such practices may limit the prices the Companycan charge for its products and services. Additionally, unfavorable foreign exchange rates can adversely impact the Company'sability to match the prices charged by international competitors. If the Company is unable to match the prices charged byinternational competitors, it may lose customers.

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Increased customer concentration and related credit, commercial and legal risk may adversely impact the Company's futureearnings and cash flows.

• The Harsco Metals & Minerals Segment and, to a lesser extent, the Harsco Rail Segment have several large customersthroughout the world with significant accounts receivable balances. Consolidation in the global steel industry has occurred inrecent years and additional consolidation is possible. Should additional transactions occur involving some of the steel or railindustry's larger companies that are customers of the Company, it would result in an increase in concentration of credit risk forthe Company. If a large customer were to experience financial difficulty, or file for bankruptcy or receivership protection, or ifthe Company were unable to collect amounts due from customers that are currently under bankruptcy or receivershipprotection, it could adversely impact the Company's results of operations, cash flows and asset valuations.

• In the Harsco Infrastructure Segment, concentrations of credit risk with respect to accounts receivable are generally limited dueto the Company's large number of customers and their dispersion across different geographies. However, continued economicdeclines in particular regions of the world could result in higher customer defaults and could adversely impact the Company'sresults of operations, cash flows and asset valuations.

• The Company's businesses may be negatively affected by disputes with customers, including its major customers. TheCompany is currently party to multiple contracts in numerous countries with its largest customer, ArcelorMittal. Thesecontracts cover a variety of services. From time to time, the Company may be negotiating the terms of current and potentialfuture services to be rendered due to the scope and complexity of this relationship. Disagreements between the parties can ariseas a result of the scope and nature of the relationship and these ongoing negotiations. Although the Company does not have anydisputes with ArcelorMittal that are expected to have a material adverse effect on the Company's financial position, results ofoperations or cash flows, the Company cannot predict whether such disputes will arise in the future.

The Company is subject to changes in legislative, regulatory and legal developments involving income taxes.The Company is subject to U.S. federal, U.S. state and international income, payroll, property, sales and use, value-added, fuel and othertypes of taxes in numerous jurisdictions. Significant judgment is required in determining the Company's worldwide provisions forincome taxes. Changes in tax rates, enactments of new tax laws, revisions of tax regulations, and claims or litigation with taxingauthorities could result in substantially higher taxes, and therefore, could have a significant adverse effect on the Company's results ofoperations, financial condition and liquidity. Currently, a majority of the Company's revenue is generated from customers locatedoutside the United States, and a substantial portion of the Company's assets and employees are located outside the United States. U.S.income tax and international withholding taxes have not been provided on undistributed earnings for certain non-U.S. subsidiaries assuch earnings are indefinitely reinvested in the operations of those subsidiaries.

Any U.S. tax reform that reduces the Company's ability to defer U.S. taxes on earnings indefinitely reinvested outside of the UnitedStates could have a negative impact on the Company's ability to compete in the global marketplace. Consequently, the Company ismonitoring proposed legislation and communicating with legislators with the goal of achieving balanced and fair tax reform that wouldnot penalize U.S. based companies with activities abroad and for generating high paying and stable headquarter and technical centerjobs. This may include legislative trade-offs between existing tax benefits and lower overall effective tax rates for U.S. companies. TheCompany continues to monitor tax legislation to be in position to fully understand its potential impact on the Company's operations andto plan accordingly.

The Company's defined benefit net periodic pension cost is directly affected by the equity and bond markets, and a downward trendin those markets could adversely impact the Company's results of operations.In addition to the economic issues that directly affect the Company's businesses, changes in the performance of equity and bondmarkets, particularly in the United Kingdom and the United States, impact actuarial assumptions used in determining annual netperiodic pension cost, pension liabilities and the valuation of the assets in the Company's defined benefit pension plans. Financialmarket deterioration would most likely have a negative impact on the Company's net periodic pension cost and the pension assets andliabilities. This could result in a decrease to stockholders' equity and an increase in the Company's statutory funding requirements.

The Company's results of operations may be positively or negatively impacted by the amount of income or expense the Companyrecords for defined benefit pension plans. The Company calculates income or expense for the defined benefit pension plans usingactuarial valuations that reflect assumptions relating to financial market and other economic conditions. The most significantassumptions used to estimate defined benefit pension income or expense for the upcoming year are the discount rate and the expectedlong-term rate of return on plan assets. If there are significant changes in key economic indicators, the impact of these assumptions maymaterially affect the Company's financial position, results of operations and cash flows. These key economic indicators would alsolikely affect the amount of cash the Company would contribute to the defined benefit pension plans. For a discussion regarding how theCompany's consolidated financial statements can be affected

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by defined benefit pension plan accounting policies, see Application of Critical Accounting Policies in Part II, Item 7, "Management'sDiscussion and Analysis of Financial Condition and Results of Operations."

The Company's Pension Committee continues to evaluate alternative strategies to further reduce overall net periodic pension costincluding: conversion of certain remaining defined benefit plans to defined contribution plans; the ongoing evaluation of investmentfund managers' performance; the balancing of plan assets and liabilities; the risk assessment of multiemployer pension plans; thepossible merger of certain plans; the consideration of incremental voluntary cash contributions to certain plans; and other changes thatare likely to reduce future net periodic pension cost volatility and minimize risk.

In addition to the Company's defined benefit pension plans, the Company also participates in numerous multiemployer pension plansthroughout the world. Within the United States, the Pension Protection Act of 2006 may require additional funding for multiemployerplans that could cause the Company to be subject to higher cash contributions in the future. Additionally, market conditions and thenumber of participating employers remaining in each plan may affect the funded status of multiemployer plans and consequently anyCompany withdrawal liability, if applicable. The Company continues to monitor and assess any full and partial withdrawal liabilityimplications associated with these plans.

Downgrades in the Company's credit ratings could increase the Company's cost of borrowing and could adversely affect theCompany's future earnings and ability to access the capital markets.The Company's cost of borrowing and ability to access capital markets are affected not only by market conditions but also by the short-and long-term debt ratings assigned to the Company's debt by the major credit rating agencies. These ratings are based, in part, on theCompany's financial position and liquidity as measured by credit metrics such as interest coverage and leverage ratios. See Liquidityand Capital Resources under Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations"for further discussion on credit ratings and watch or outlook. Increased costs of borrowings or an inability to access the capital marketscould have a material adverse effect on the Company's results of operations, financial position, liquidity and cash flows.

Restrictions imposed by the Company's outstanding notes and credit facility may limit the Company's ability to obtain additionalfinancing or to pursue business opportunities.The Company’s 5.75% and 2.7% notes include covenants that require the Company to offer to repurchase the notes at 101% of par inthe event of a change of control of the Company or disposition of substantially all of the Company’s assets in combination with adowngrade in the Company’s credit rating to non-investment grade. The Company’s credit facility contains covenants that stipulate amaximum debt to capital ratio of 60%, limits the proportion of subsidiary consolidated indebtedness to a maximum of 10% ofconsolidated tangible assets and specifies a minimum ratio of total consolidated earnings before interest, taxes, depreciation andamortization to consolidated interest charges of 3.0:1. These covenants limit the amount of debt the Company may incur, which couldlimit the Company's ability to obtain additional financing or pursue business opportunities. In addition, the Company's ability to complywith these ratios may be affected by events beyond its control. A breach of any of these covenants or the inability to comply with therequired financial ratios could result in a default under the credit facility. In the event of any default under the credit facility, the lendersunder the facility could elect to declare all borrowings outstanding, together with accrued and unpaid interest and other fees, to be dueand payable, which would cause an event of default under the credit facility. This could, in turn, trigger an event of default under thecross-default provisions of the Company's other outstanding indebtedness. At December 31, 2012, the Company was in compliance withthese covenants. See Liquidity and Capital Resources under Part II, Item 7, "Management's Discussion and Analysis of FinancialCondition and Results of Operations" for further discussion.

Failure of financial institutions to fulfill their commitments under committed credit facility and derivative financial instruments mayadversely affect the Company's future earnings and cash flows.The Company has a committed revolving credit facility with financial institutions available for its use, for which the Company payscommitment fees. The credit facility is provided by a syndicate of several financial institutions, with each institution agreeing severally(and not jointly) to make revolving credit loans to the Company in accordance with the terms of the related credit agreement. If one ormore of the financial institutions providing the committed credit facility were to default on its obligation to fund its commitment, theportion of the committed facility provided by such defaulting financial institution would not be available to the Company.

The Company uses cross currency interest rate swaps in conjunction with certain debt issuances in order to secure either a fixed orfloating local currency interest rate. The Company has foreign currency forward exchange contracts outstanding as part of a worldwideprogram to minimize foreign currency operating income and balance sheet exposure. Foreign currency forward exchange contracts areused to hedge commitments, such as foreign currency debt, firm purchase commitments and foreign currency cash flows for certain

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export sales transactions. The unsecured contracts for cross currency interest rate swaps and foreign currency forward exchangecontracts outstanding at December 31, 2012 mature at various times through 2020 and are

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with major financial institutions. The Company may also enter into derivative contracts to hedge commodity exposures. The Companymay be exposed to credit loss in the event of non-performance by the counterparties to the contracts.

The failure of a counterparty to fulfill its obligation under the committed credit facility or derivative financial instruments may have amaterial adverse effect on the Company's results of operations, financial condition, liquidity and cash flows.

See Liquidity and Capital Resources under Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Resultsof Operations" for more information.

The Company's cash flows and earnings are subject to changes in interest rates.The Company's total debt at December 31, 2012 was $969.3 million. Of this amount, approximately 11% had variable rates of interestand approximately 89% had fixed rates of interest. The weighted average interest rate of total debt was approximately 4.44%. At currentdebt levels, a one percentage point increase/decrease in variable interest rates would increase/decrease interest expense byapproximately $1.1 million per year. If the Company is unable to successfully manage its exposure to variable interest rates, its resultsof operations may be negatively impacted.

A negative outcome on personal injury claims against the Company may adversely impact results of operations and financialcondition.The Company has been named as one of many defendants (approximately 90 or more in most cases) in legal actions alleging personalinjury from exposure to airborne asbestos over the past several decades. In their suits, the plaintiffs have named as defendants, amongothers, many manufacturers, distributors and installers of numerous types of equipment or products that allegedly contained asbestos.The majority of the asbestos complaints pending against the Company have been filed in New York. Almost all of the New Yorkcomplaints contain a standard claim for damages of $20 million or $25 million against the approximately 90 defendants, regardless ofthe individual plaintiff's alleged medical condition, and without specifically identifying any Company product as the source of plaintiff'sasbestos exposure. If the Company is found to be liable in any of these actions and the liability exceeds the Company's insurancecoverage, results of operations, cash flows and financial condition could be adversely affected. For more information concerning thislitigation, see Note 11, Commitments and Contingencies, to the Consolidated Financial Statements under Part II, Item 8, "FinancialStatements and Supplementary Data."

Higher than expected claims under insurance policies, under which the Company retains a portion of the risk, could adverselyimpact results of operations and cash flows.The Company retains a significant portion of the risk for property, workers' compensation, U.K. employers' liability, automobile andgeneral and product liability losses. Reserves have been recorded that reflect the undiscounted estimated liabilities for ultimate lossesincluding claims incurred but not reported. Inherent in these estimates are assumptions that are based on the Company's history ofclaims and losses, a detailed analysis of existing claims with respect to potential value, and current legal and legislative trends. AtDecember 31, 2012 and 2011, the Company had recorded liabilities of $82.7 million and $85.9 million, respectively, related to bothasserted and unasserted insurance claims. Included in the balance at December 31, 2012 and 2011 were $3.6 million and $2.6 million,respectively, of recognized liabilities covered by insurance carriers. If actual claims are higher than those projected by management, anincrease to the Company's insurance reserves may be required and would be recorded as a charge to income in the period the need forthe change was determined. Conversely, if actual claims are lower than those projected by management, a decrease to the Company'sinsurance reserves may be required and would be recorded as a reduction to expense in the period the need for the change wasdetermined.

The Company is subject to various environmental laws, and the success of existing or future environmental claims against it couldadversely impact the Company's results of operations and cash flows.The Company's operations are subject to various federal, state, local and international laws, regulations and ordinances relating to theprotection of health, safety and the environment, including those governing discharges to air and water, handling and disposal practicesfor solid and hazardous wastes, the remediation of contaminated sites and the maintenance of a safe workplace. These laws imposepenalties, fines and other sanctions for non-compliance and liability for response costs, property damages and personal injury resultingfrom past and current spills, disposals or other releases of, or exposure to, hazardous materials. The Company could incur substantialcosts as a result of non-compliance with or liability for remediation or other costs or damages under these laws. The Company may besubject to more stringent environmental laws in the future, and compliance with more stringent environmental requirements may requirethe Company to make material expenditures or subject it to liabilities that the Company currently does not anticipate.

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The Company is currently involved in a number of environmental remediation investigations and cleanups and, along with othercompanies, has been identified as a "potentially responsible party" for certain waste disposal sites under the federal "Superfund" law. Atseveral sites, the Company is currently conducting environmental remediation, and it is probable that the Company will agree to makepayments toward funding certain other of these remediation activities. It also is possible that some of these matters will be decidedunfavorably to the Company and that other sites requiring remediation will be identified.

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Each of these matters is subject to various uncertainties, and financial exposure is dependent upon such factors as the continuingevolution of environmental laws and regulatory requirements; the availability and application of technology; the allocation of costamong potentially responsible parties; the years of remedial activity required; and the remediation methods selected. The Company hasevaluated its potential liability and the Consolidated Balance Sheets at 2012 and 2011 include an accrual of $1.9 million and $2.5million, respectively, for future expenditures related to environmental matters. The amounts charged against pre-tax earnings related toenvironmental matters totaled $1.2 million, $2.0 million and $2.6 million during 2012, 2011 and 2010, respectively. The liability forfuture remediation costs is evaluated on a quarterly basis. Actual costs to be incurred at identified sites in future periods may be greaterthan the estimates, given inherent uncertainties in evaluating environmental exposures.

Increases in energy prices could increase the Company's operating costs and reduce its profitability.Worldwide political and economic conditions, an imbalance in the supply and demand for oil, extreme weather conditions and armedhostilities in oil-producing regions, among other factors, may result in an increase in the volatility of energy costs, both on a macro basisand for the Company specifically. To the extent that increased energy costs cannot be passed on to customers in the future, the financialcondition, results of operations and cash flows of the Company may be adversely affected.

Increases or decreases in purchase prices (or selling prices) or availability of steel or other materials and commodities may affect theCompany's profitability.The profitability of the Company's manufactured products is affected by changing purchase prices of steel and other materials andcommodities. If raw material costs associated with the Company's manufactured products increase and the costs cannot be transferred tothe Company's customers, results of operations would be adversely affected. Additionally, decreased availability of steel or othermaterials could affect the Company's ability to produce manufactured products in a timely manner. If the Company cannot obtain thenecessary raw materials for its manufactured products, then revenues, results of operations and cash flows could be adversely affected.

Certain services performed by the Harsco Minerals businesses result in the recovery, processing and sale of recovered metals andminerals and other high-value metal by-products to its customers. The selling price of the by-products material is market-based andvaries based upon the current fair value of its components. Therefore, the revenue amounts generated from the sale of such by-productsmaterial vary based upon the fair value of the commodity components being sold.

The Company may not be able to manage and integrate acquisitions successfully.In the past, the Company has acquired businesses and, on an ongoing basis, continues to evaluate strategic acquisition opportunities thathave the potential to support and strengthen the business. The Company can give no assurances, however, that any acquisitionopportunities will arise or, if they do, that they will be consummated, or that additional financing or capital, if needed, will be availableon satisfactory terms. In addition, acquisitions involve inherent risks that the businesses acquired will not perform in accordance withthe Company's expectations. The Company may not be able to achieve the synergies and other benefits that are expected from theintegration of acquisitions as successfully or rapidly as projected, if at all. The Company's failure to effectively integrate newly acquiredoperations could prevent the Company from recognizing expected rates of return on an acquired business and could have a material andadverse effect on the results of operations, financial condition, liquidity and cash flows.

Due to the international nature of the Company's business, the Company could be adversely affected by violations of certain laws.The Company's policies mandate compliance with certain U.S. and international laws, such as import/export regulations, the U.S.Foreign Corrupt Practices Act and similar anti-bribery laws. With regard to the U.S. Foreign Corrupt Practices Act and anti-briberylaws, the Company operates in many parts of the world that have experienced governmental corruption to some degree and, in certaincircumstances, strict compliance with anti-bribery laws may conflict with local customs and practices. The Company cannot provideassurance that its internal controls and procedures will always prevent reckless or criminal acts by its employees or agents. If theCompany is found to be liable for violations of these laws (either due to its own acts, out of inadvertence, or due to the acts orinadvertence of others), the Company could suffer criminal or civil penalties or other sanctions, including limitations on its ability toconduct its business, which could have a material and adverse effect on results of operations, financial condition, and cash flows.

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The Company may be unable to achieve, or may be delayed in achieving, its cost-cutting initiatives, and this may adversely affectoperating results and cash flow.The Company has launched a number of cost-cutting initiatives, including restructuring initiatives implemented in the fourth quarters of2010 and 2011, to improve operating efficiencies and reduce operating costs. Although the Company has achieved a substantial amountof annual cost savings associated with these cost-cutting initiatives, it may be unable to sustain the cost savings that have been achieved.In addition, if the Company is unable to achieve, or has any unexpected delays in achieving additional cost savings in the expectedtimeframe, its results of operations and cash flow may be adversely affected. Even if the Company meets the goals pursuant to theseinitiatives, it may not receive the expected financial benefits of these initiatives.

The Company maintains a workforce based upon current and anticipated workload. If the Company does not receive future contractawards or if these awards are delayed, significant cost may result.The Company's estimates of future performance depend on, among other matters, whether and when the Company will receive certainnew contract awards, including the extent to which the Company utilizes its workforce. The rate at which the Company utilizes itsworkforce is impacted by a variety of factors including the ability to manage attrition; to forecast the need for services, which allows itto maintain an appropriately sized workforce; the ability to transition employees from completed projects to new projects or betweensegments; and the need to devote resources to non-revenue generating activities such as training or business development. While theCompany's estimates are based upon its good faith judgment, these estimates can be unreliable and may frequently change based onnewly available information. In the case of large-scale domestic and international projects where timing is often uncertain, it isparticularly difficult to predict whether and when the Company will receive a contract award. The uncertainty of contact award timingcan present difficulties in matching the Company's workforce size with contract needs. If an expected contract award is delayed or notreceived, the Company could incur cost resulting from reductions in staff or redundancy of facilities or equipment that could have amaterial and adverse effect on results of operations, financial condition, liquidity and cash flows.

The success of the Company's strategic ventures depends on the satisfactory performance by strategic venture partners of theirstrategic venture obligations.The Company enters into various strategic ventures as part of its strategic growth initiatives as well as to comply with local laws.Differences in opinions or views between strategic venture partners can result in delayed decision-making or failure to agree on materialissues which could adversely affect the business and operations of the venture. From time to time in order to establish or preserve arelationship, or to better ensure venture success, the Company may accept risks or responsibilities for the strategic venture which are notnecessarily proportionate with the reward it expects to receive. The success of these and other strategic ventures also depends, in largepart, on the satisfactory performance by the Company's strategic venture partners of their strategic venture obligations, including theirobligation to commit working capital, equity or credit support as required by the strategic venture and to support their indemnificationand other contractual obligations. If the Company's strategic venture partners fail to satisfactorily perform their strategic ventureobligations as a result of financial or other difficulties, the strategic venture may be unable to adequately perform or deliver itscontracted services. Under these circumstances, the Company may be required to make additional investments and provide additionalservices to ensure the adequate performance and delivery of the contracted services. These additional obligations could result in reducedprofits or, in some cases, increased liabilities or significant losses for the Company with respect to the strategic venture. In addition,although the Company generally performs due diligence with regard to potential strategic partners or ventures, a failure by a strategicventure partner to comply with applicable laws, rules or regulations could negatively impact its business and, in the case of governmentcontracts, could result in fines, penalties, suspension or even debarment. Unexpected strategic venture developments could have amaterial and adverse effect on results of operations, financial condition and cash flows.

Item 1B. Unresolved Staff Comments.

None.

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Item 2. Properties.

Operations of Harsco Corporation and its subsidiaries are conducted at both owned and leased properties in domestic and internationallocations. The Company's executive offices are located at 350 Poplar Church Road, Camp Hill, Pennsylvania 17011 and are owned. Thefollowing table describes the location and principal use of the Company's more significant properties.

Location Principal Products Interest

Harsco Metals & Minerals SegmentCoronel Fabriciano, Brazil Minerals and Resource Recovery Technologies OwnedEast Chicago, Indiana, United States Minerals and Resource Recovery Technologies OwnedMitterdorf, Austria Minerals and Resource Recovery Technologies LeasedSarver, Pennsylvania, United States Minerals and Resource Recovery Technologies OwnedSorel—Tracy, Canada Minerals and Resource Recovery Technologies LeasedTimoteo, Brazil Minerals and Resource Recovery Technologies LeasedWarren, Ohio, United States Minerals and Resource Recovery Technologies OwnedDrakesboro, Kentucky, United States Roofing Granules/Abrasives OwnedFairless Hills, Pennsylvania, United States Roofing Granules/Abrasives OwnedGallipolis, Ohio, United States Roofing Granules/Abrasives LeasedGary, Indiana, United States Roofing Granules/Abrasives OwnedMoundsville, West Virginia, United States Roofing Granules/Abrasives Leased

Harsco Infrastructure SegmentAbu Dhabi, United Arab Emirates Infrastructure Services, Rentals and Sales OwnedAhrensfelde, Germany Infrastructure Services, Rentals and Sales LeasedAtlanta, Georgia, United States Infrastructure Services, Rentals and Sales OwnedArkel, The Netherlands Infrastructure Services, Rentals and Sales OwnedBrisbane, Australia Infrastructure Services, Rentals and Sales LeasedDosthill, United Kingdom Infrastructure Services, Rentals and Sales OwnedHouston, Texas, United States Infrastructure Services, Rentals and Sales OwnedLille, France Infrastructure Services, Rentals and Sales LeasedLubna, Poland Infrastructure Services, Rentals and Sales OwnedMarion, Ohio, United States Infrastructure Services, Rentals and Sales OwnedPittsburgh, Pennsylvania, United States Infrastructure Services, Rentals and Sales LeasedRatingen, Germany Infrastructure Services, Rentals and Sales LeasedSacramento, California, United States Infrastructure Services, Rentals and Sales LeasedTrevoux, France Infrastructure Services, Rentals and Sales Owned

Harsco Rail SegmentBrendale, Australia Rail Maintenance Equipment OwnedLudington, Michigan, United States Rail Maintenance Equipment OwnedWest Columbia, South Carolina, United States Rail Maintenance Equipment Owned

Harsco Industrial SegmentCatoosa, Oklahoma, United States Heat Exchangers Owned and LeasedSapulpa, Oklahoma, United States Heat Exchangers LeasedEast Stroudsburg, Pennsylvania, United States Heat Transfer Products OwnedChannelview, Texas, United States Industrial Grating Products Owned

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Garrett, Indiana, United States Industrial Grating Products LeasedLeeds, Alabama, United States Industrial Grating Products OwnedQueretaro, Mexico Industrial Grating Products Owned

The Harsco Metals business, which is part of the Harsco Metals & Minerals Segment, principally operates on customer-owned sites andhas administrative offices in Camp Hill, Pennsylvania, and Leatherhead, United Kingdom.

The above table includes the principal properties owned or leased by the Company. The Company also operates from a number of othersmaller plants, branches, depots, warehouses and offices in addition to the above. The Company considers all of its properties at whichoperations are currently performed to be in satisfactory condition and suitable for their intended use.

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Item 3. Legal Proceedings.

Information regarding legal proceedings is included in Note 11, Commitments and Contingencies, to the Consolidated FinancialStatements under Part II, Item 8, "Financial Statements and Supplementary Data."

Item 4. Mine Safety Disclosures.

Not applicable.

Supplementary Item. Executive Officers of the Registrant

Set forth below, at February 26, 2013, are the executive officers of the Company (this excludes seven corporate officers who are notdeemed "executive officers" within the meaning of applicable Securities and Exchange Commission regulations) and certaininformation with respect to each of them. P. K. Decker was elected President and Chief Executive Office effective September 10, 2012.B. E. Malamud was elected Interim Chief Financial Officer effective November 16, 2012, and Vice President and Corporate Controller,effective June 2, 2011. M. E. Kimmel and A. V. Dorch were elected to their respective positions effective June 5, 2012. G. J. Claro, S.H. Gerson and S. W. Jacoby were elected to their respective positions effective April 24, 2012. All terms expire on April 23, 2013.There are no family relationships among any of the executive officers.

Name Age Position with the Company

Executive Officers:P. K. Decker 47 President and Chief Executive OfficerB. E. Malamud 45 Vice President, Corporate Controller and Interim Chief Financial OfficerM. E. Kimmel 53 Senior Vice President, President—Harsco InfrastructureG. J. Claro 53 Executive Vice President and Group CEO—Harsco Metals & MineralsA. V. Dorch 45 Vice President, General Counsel and Corporate SecretaryS. H. Gerson 42 Vice President and Group President—Harsco IndustrialS. W. Jacoby 46 Vice President and Group President—Harsco Rail

P. K. DeckerPresident and Chief Executive Officer of the Company since September 10, 2012. From 2007 until his appointment as President andChief Executive Officer, Mr. Decker served as President of Tyco Flow Control, the second largest business segment of TycoInternational Ltd. (“Tyco”), a global leader in engineered valves and controls, heat management solutions and large-scale waterinfrastructure projects. Prior to that, he served Tyco for four years in CFO roles at the operating segment level, including Tyco'smultinational Engineered Products and Services division. Before joining Tyco, Mr. Decker held progressively responsible leadershippositions throughout a 12-year career at Bristol-Myers Squib, a global biopharmaceutical company. Mr. Decker has served on theCompany's Board of Directors since October 29, 2012.

B. E. MalamudVice President, Corporate Controller and Interim Chief Financial Officer since November 16, 2012. Served as Vice President andCorporate Controller from June 2, 2011 to November 15, 2012. Served as Vice President-Internal Audit and Interim CorporateController from April 1, 2011 to June 1, 2011. Served as Vice President-Internal Audit from May 17, 2010 through March 31, 2011.Served as Senior Director of Corporate Accounting from July 2003 through May 14, 2010. Previously served in various accounting,

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auditing and treasury positions for the Company from 1992 to 2003. Prior to joining Harsco, he worked for the accounting firmCoopers & Lybrand in Harrisburg, PA from July 1989 to March 1992. Mr. Malamud is a Certified Public Accountant.

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M. E. KimmelSenior Vice President and Group President—Harsco Infrastructure since June 5, 2012. Served as Senior Vice President, ChiefAdministrative Officer, General Counsel and Corporate Secretary from January 1, 2008 to June 4, 2012. Served as General Counsel andCorporate Secretary from January 1, 2004 to December 31, 2007. Served as Corporate Secretary and Assistant General Counsel fromMay 1, 2003 to December 31, 2003. Held various legal positions within the Company since he joined Harsco in August 2001. Prior tojoining the Company, he was Vice President, Administration and General Counsel, New World Pasta Company from January 1999 toJuly 2001. Before joining New World Pasta, Mr. Kimmel spent approximately 12 years in various legal positions with Hershey FoodsCorporation.

G. J. ClaroExecutive Vice President and Group CEO—Harsco Metals & Minerals since July 6, 2010. Served as Group CEO, Harsco Metals andHarsco Minerals Groups from September 1, 2009 to July 6, 2010. Served as Group CEO—Harsco Metals from June 1, 2009 toSeptember 1, 2009. Prior to joining Harsco in 2009, Mr. Claro served as the CEO of Aleris Americas and has nearly 30 years ofexecutive leadership experience in the worldwide metals industry, including 20 years as an international operations executive withinAlcoa Inc.

A. V. DorchVice President, General Counsel and Corporate Secretary since June 5, 2012. Served as Vice President, Deputy General Counsel andAssistant Corporate Secretary from April 26, 2011 to June 4, 2012, as Assistant General Counsel and Assistant Corporate Secretaryfrom January 1, 2008 to April 25, 2011 and as Assistant General Counsel from July 6, 2006 to December 31, 2007. Prior to joiningHarsco, Ms. Dorch served as a senior associate in the San Francisco office of Pillsbury Winthrop Shaw Pittman LLP. Before that, sheheld senior legal positions with leading law firms in both New York and Boston.

S. H. GersonVice President and Group President—Harsco Industrial since January 25, 2011. Served as Vice President and Group President- HarscoIndustrial and Chief Information Officer from July 6, 2010 to January 25, 2011. Served as Chief Information Officer from April 4, 2005to July 6, 2010. Prior to joining Harsco on April 4, 2005, Mr. Gerson was with Kulicke & Soffa Industries, Inc., where he served as ITdirector of their worldwide application services. He has also served in IT management capacities with Compaq Computers andTRW Inc.

S. W. JacobyVice President and Group President—Harsco Rail since July 6, 2010. Served as President of Harsco Rail from April 2009 to July 2010.Served as Vice President and General Manager of Harsco Track Technologies from August 2007 to April 2009. Served as VicePresident and General Manager of Air- X-Changers from April 2005 to August 2007. Mr. Jacoby has held other senior managementpositions in the Harsco Industrial business group since joining the Company on April 3, 1995. Prior to joining Harsco in 1995,Mr. Jacoby began his career with Mack Trucks.

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PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Harsco Corporation common stock is listed on the New York Stock Exchange. At the end of 2012, there were 80,584,628 sharesoutstanding. In 2012, the Company's common stock traded in a range of $18.40 to $24.48 and closed at $23.50 at year-end. AtDecember 31, 2012, there were approximately 14,000 stockholders. There are no significant limitations on the payment of dividendsincluded in the Company's loan agreements. For additional information regarding Harsco Corporation's common stock market price anddividends declared, see Dividend Action under Part II, Item 7, "Management's Discussion and Analysis of Financial Condition andResults of Operations," and the Common Stock Price and Dividend Information under Part II, Item 8, "Financial Statements andSupplementary Data." For additional information on the Company's equity compensation plans see Part III, Item 11, "ExecutiveCompensation."

Issuer Purchases of Equity Securities

Period

TotalNumber of

SharesPurchased

AveragePrice Paidper Share

Total Number ofShares Purchasedas Part of PubliclyAnnounced Plans

or Programs

Maximum Numberof Shares that MayYet Be Purchased

Under the Plans orPrograms

October 1, 2012-October 31, 2012 — — — 1,713,423November 1, 2012-November 30, 2012 — — — 1,713,423December 1, 2012-December 31, 2012 — — — 1,713,423

Total — — —

At December 31, 2012, 1,713,423 shares remained available for repurchase under the Company's share repurchase program. On January28, 2013, the Board of Directors increased the number of shares available for repurchase under the Company's share repurchaseprogram and extended the program for an additional year. As a result, the Company is currently authorized to repurchase up to2,000,000 shares through January 31, 2014. When and if appropriate, repurchases are made in open market transactions, depending onmarket conditions. Share repurchases may not occur and may be discontinued at any time.

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Item 6. Selected Financial Data.

Five-Year Statistical Summary

(In thousands, except per share,employee information andpercentages) 2012 2011 2010 2009(a) 2008

Income Statement InformationRevenues from continuingoperations $ 3,046,018 $ 3,302,740 $ 3,038,678 $ 2,990,577 $ 3,967,822Amounts Attributable to Harsco Corporation common stockholdersIncome (loss) fromcontinuing operations (253,693) (9,447) 10,885 133,838 245,623Loss from discontinuedoperations (919) (2,063) (4,131) (15,061) (4,678)Net income (loss) (254,612) (11,510) 6,754 118,777 240,945Financial Position and Cash Flow InformationWorking capital $ 428,868 $ 377,163 $ 387,082 $ 418,237 $ 317,062Total assets 2,975,969 3,338,877 3,469,220 3,639,240 3,562,970Long-term debt 957,428 853,800 849,724 901,734 891,817Total debt 969,266 908,772 884,932 984,927 1,012,883Depreciation andamortization 272,117 310,441 315,239 311,531 337,949Capital expenditures (265,023) (313,101) (192,348) (165,320) (457,617)Cash provided by operatingactivities 198,879 298,776 401,427 434,458 574,276Cash used by investingactivities (219,268) (255,822) (202,023) (269,360) (443,418)Cash used by financingactivities (4,546) (39,554) (171,521) (164,083) (155,539)RatiosReturn on average equity(b)(c) (21.7)% (0.6)% 0.7% 9.1% 14.6%Current ratio 1.7:1 1.5:1 1.5:1 1.6:1 1.4:1Total debt to total capital(c)(d) 52.9 % 42.7 % 37.6% 39.5% 41.1%Per Share Information attributable to Harsco Corporation common stockholdersBasic—Income (loss) fromcontinuing operations $ (3.15) $ (0.12) $ 0.14 $ 1.67 $ 2.94

Loss fromdiscontinuedoperations (0.01) (0.03) (0.05) (0.19) (0.06)

Net income (loss) $ (3.16) $ (0.14) (e) $ 0.08 (e) $ 1.48 $ 2.88Diluted—Income (loss)from continuing operations $ (3.15) $ (0.12) $ 0.13 $ 1.66 $ 2.92

Loss fromdiscontinuedoperations (0.01) (0.03) (0.05) (0.19) (0.06)

Net income (loss) $ (3.16) $ (0.14) (e) $ 0.08 $ 1.47 $ 2.87 (e)

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Other InformationBook value per share $ 10.69 $ 15.16 $ 18.23 $ 18.79 $ 18.09Cash dividends declared pershare 0.820 0.820 0.820 0.805 0.780Diluted weighted-averagenumber of sharesoutstanding 80,632 80,736 80,761 80,586 84,029Number of employees 18,500 19,650 19,300 19,600 21,500

(a) Includes ESCO Interamerica, Ltd. acquired November 10, 2009 (Harsco Infrastructure Segment).(b) Return on average equity is calculated by dividing income (loss) from continuing operations by average equity throughout the year.(c) 2008 reflects noncontrolling interests, previously referred to as minority interests, as a component of equity in accordance with the changes to consolidation

accounting and reporting issued by the Financial Accounting Standards Board January 1, 2009.(d) "Total debt to total capital" is calculated by dividing total debt (short-term borrowings and long-term debt including current maturities) by the sum of equity

and total debt.(e) Does not total due to rounding.

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Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the Consolidated Financial Statements provided under Part II, Item 8,"Financial Statements and Supplementary Data," of this Annual Report on Form 10-K.

Amounts included in this Item 7 of this Annual Report on Form 10-K are rounded in millions and all percentages are calculated basedon actual amounts. As a result, minor differences may exist due to rounding.

Forward-Looking Statements

The nature of the Company's business and the many countries in which it operates subject it to changing economic, competitive,regulatory and technological conditions, risks and uncertainties. In accordance with the "safe harbor" provisions of the Private SecuritiesLitigation Reform Act of 1995, the Company provides the following cautionary remarks regarding important factors that, among others,could cause future results to differ materially from the results contemplated by forward-looking statements, including the expectationsand assumptions expressed or implied herein. Forward-looking statements contained herein could include, among other things,statements about management's confidence in and strategies for performance; expectations for new and existing products, technologiesand opportunities; and expectations regarding growth, sales, cash flows, earnings and Economic Value Added ("EVA®"). Forward-looking statements can be identified by the use of such terms as "may," "could," "expect," "anticipate," "intend," "believe," "likely,""estimate," "plan" or other comparable terms.

Factors that could cause actual results to differ, perhaps materially, from those implied by forward-looking statements include, but arenot limited to: (1) changes in the worldwide business environment in which the Company operates, including general economicconditions; (2) changes in currency exchange rates, interest rates, commodity and fuel costs and capital costs; (3) changes in theperformance of equity and bond markets that could affect, among other things, the valuation of the assets in the Company's pensionplans and the accounting for pension assets, liabilities and expenses; (4) changes in governmental laws and regulations, includingenvironmental, tax and import tariff standards; (5) market and competitive changes, including pricing pressures, market demand andacceptance for new products, services and technologies; (6) unforeseen business disruptions in one or more of the many countries inwhich the Company operates due to political instability, civil disobedience, armed hostilities, public health issues or other calamities;(7) the seasonal nature of the Company's business; (8) the Company's ability to successfully enter into new contracts and complete newacquisitions or joint ventures in the timeframe contemplated, or at all; (9) the integration of the Company's strategic acquisitions;(10) the amount and timing of repurchases of the Company's common stock, if any; (11) the prolonged recovery in global financial andcredit markets and economic conditions generally, which could result in the Company's customers curtailing development projects,construction, production and capital expenditures, which, in turn, could reduce the demand for the Company's products and servicesand, accordingly, the Company's revenues, margins and profitability; (12) the outcome of any disputes with customers; (13) the financialcondition of the Company's customers, including the ability of customers (especially those that may be highly leveraged and those withinadequate liquidity) to maintain their credit availability; (14) the Company's ability to successfully implement and receive the expectedbenefits of cost-reduction and restructuring initiatives, including the achievement of expected cost savings in the expected time frame;(15) risk and uncertainty associated with intangible assets; and (16) other risk factors listed from time to time in the Company's SECreports. A further discussion of these, along with other potential risk factors, can be found in Part I, Item 1A, "Risk Factors," of thisAnnual Report on Form 10-K. The Company cautions that these factors may not be exhaustive and that many of these factors arebeyond the Company's ability to control or predict. Accordingly, forward-looking statements should not be relied upon as a prediction ofactual results. The Company undertakes no duty to update forward-looking statements except as may be required by law.

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Executive Overview

In the Harsco Metals & Minerals Segment, overall global steel production softened further in 2012, most notably in Europe and SouthAmerica. In addition, the Company decided to exit underperforming contracts that were not meeting the Company's required rate ofreturn. Offsetting these unfavorable items were benefits from previous cost reduction actions, including the 2011/2012 RestructuringProgram implemented in the fourth quarter of 2011. The Company continues to see significant new bidding activities for its services andenvironmental solutions to customers around the world, and anticipates the start-up in 2013 of several contract awards in China, Indiaand elsewhere.

The Harsco Infrastructure Segment again faced significant challenges in 2012, as continued market uncertainty impacted businessthrough project delays, scope reductions and job cancellations. These conditions were most prominent in Europe, where there has been aprolonged downturn in the markets served by the business. The Company recorded a $265.0 million, non-cash goodwill impairmentcharge related to this Segment in the fourth quarter of 2012 as part of its annual goodwill impairment testing.

In the fourth quarter of 2011, the Company initiated the 2011/2012 Restructuring Program to further address the realignment of theCompany's Infrastructure business and strengthen the Harsco Metals & Minerals Segment. As previously disclosed in the Company'sAnnual Report on Form 10-K for the year ended December 31, 2011, the Company incurred approximately $101 million in pre-taxcharges under this program in 2011. In 2012, $94.5 million in pre-tax charges were incurred. Benefits under this program, in the form ofreduced costs, were $55 million in 2012 and are expected to be more than $63 million when annualized in 2013.

The Harsco Rail Segment's 2012 results were favorably affected by the mix and timing of equipment deliveries, most notably for thelarge contract with the China Ministry of Railways, where the accelerated timing of deliveries was driven by the customer's schedule.

The Harsco Industrial Segment recorded another solid performance in 2012, led by the air-cooled heat exchangers and industrial gratingproducts businesses. This Segment continues to focus on the worldwide energy sector, and part of the ongoing strategy for this Segmentis the successful globalization of the business with a renewed emphasis on product development and differentiation.

Revenues by Segment

(Dollars in millions) 2012 2011 Change %

Harsco Metals & Minerals $ 1,404.1 $ 1,588.3 $ (184.2) (11.6)%Harsco Infrastructure 937.3 1,108.3 (171.0) (15.4)Harsco Rail 352.0 300.0 52.0 17.3Harsco Industrial 352.6 306.1 46.5 15.2

Total Revenues $ 3,046.0 $ 3,302.7 $ (256.7) (7.8)%

Revenues by Region

(Dollars in millions) 2012 2011 Change %

Western Europe $ 1,081.9 $ 1,242.9 $ (161.0) (13.0)%North America 1,187.6 1,161.5 26.0 2.2Latin America (a) 327.3 345.8 (18.5) (5.4)Middle East and Africa 151.0 207.0 (56.0) (27.1)Asia-Pacific 199.9 197.8 2.1 1.1Eastern Europe 98.4 147.8 (49.4) (33.4)

Total Revenues $ 3,046.0 $ 3,302.7 $ (256.7) (7.8)%(a) Includes Mexico.

Revenues for the Company totaled $3.0 billion and $3.3 billion for 2012 and 2011, respectively. The Company generated lowerrevenues for 2012 due to several actions taken to increase long-term returns and invest capital more effectively. Two of these actionswere exiting underperforming contracts in the Harsco Metals & Minerals Segment and ceasing operations in certain countries in the

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Harsco Infrastructure Segment, which together accounted for $128.7 million of the year-over-year revenue decline. Foreign currencytranslation decreased revenues by $123.0 million for 2012 in comparison with last year. Revenues from the Company's targeted growthmarkets (those outside North America and Western Europe) were approximately 26% of total revenues compared with 27% of totalrevenues in 2011.

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Operating Income (Loss) by Segment

(Dollars in millions) 2012 2011 Change %

Harsco Metals & Minerals $ 85.5 $ 109.6 $ (24.1) (22.0)%Harsco Infrastructure (368.7) (125.6) (243.1) 193.6Harsco Rail 56.1 58.7 (2.7) (4.5)Harsco Industrial 60.2 50.7 9.5 18.8Corporate (7.9) (5.8) (2.1) 36.3

Total Operating Income (Loss) $ (174.8) $ 87.6 $ (262.4) (299.4)%

Operating Margins by Segment 2012 2011

Harsco Metals & Minerals 6.1 % 6.9 %Harsco Infrastructure (39.3) (11.3)Harsco Rail 15.9 19.6Harsco Industrial 17.1 16.5

Consolidated Operating Margin (5.7)% 2.7 %

Operating loss from continuing operations for 2012 was $174.8 million compared with operating income from continuing operations of$87.6 million in 2011. This decrease was principally driven by a $265.0 million pre-tax goodwill impairment charge in the HarscoInfrastructure Segment. Other significant items impacting the comparison of operating income (loss) for 2012 with 2011 include:

• Restructuring charges of $94.5 million associated with the 2011/2012 Restructuring Program in 2012, compared with a pre-taxcharge of approximately $101 million in 2011.

• Non-cash pre-tax gains of $10.9 million in 2012, associated with the Harsco Infrastructure Segment's exit from certaincountries under the 2011/2012 Restructuring Program. These gains were currency translation adjustments recognized when theCompany substantially liquidated investments in foreign entities.

• Pre-tax reduction of estimated costs of approximately $8 million recognized in 2011 related to the first phase of the HarscoRail Segment's large China order.

• Pre-tax expense of approximately $8 million incurred to exit an underperforming contract in the Harsco Metals & MineralsSegment in 2012.

Benefits realized under the 2011/2012 Restructuring Program had a positive pre-tax effect on operating income (loss) of approximately$55 million for 2012. Certain benefits under this program were accelerated and resulted in greater than initially anticipated cost savingsof $36 million in 2012. Under this program, the Company expects to realize benefits of approximately $63 million on an annualizedbasis in 2013. Savings under the Company’s Fourth Quarter 2010 Harsco Infrastructure Program have previously been estimated at $60million per year, and the Company realized that amount in 2012. See Note 18, Restructuring Programs, to the Consolidated FinancialStatements under Part II, Item 8, "Financial Statements and Supplementary Data," for more information on the Company's restructuringprograms.

Diluted loss per share from continuing operations for 2012 was $3.15 compared with a loss of $0.12 for 2011.

The Company continues to have sufficient available liquidity and has been able to obtain all necessary financing. The Companycurrently expects operational and business needs to be covered by cash from operations and sales of assets for 2013, althoughborrowings may be made from time to time due to historical patterns of seasonal cash flow and for the funding of various projects. SeeLiquidity and Capital Resources under Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results ofOperations" for further discussion on cash flows.

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Harsco Metals & Minerals Segment:

Significant Impacts on Revenues (In millions)Revenues—2011 $ 1,588.3Impact of foreign currency translation (77.3)Exited underperforming contracts (68.1)Net decreased price/volume (38.8)

Revenues—2012 $ 1,404.1

Significant Impacts on Operating Income:• Lower global steel production and demand. Overall, steel production by customers under services contracts was down 9% in

2012 compared to 2011.• The impact of exiting underperforming contracts where earnings are less than the Company's required return on capital reduced

operating income.• Results for 2012 reflect expenses of approximately $8 million due to the Company's decision to exit an underperforming

contract.• These impacts were partially offset by overall cost reductions from the 2011/2012 Restructuring Program.• Foreign currency translation in 2012 decreased operating income for this Segment by $7.6 million compared with 2011.

Harsco Infrastructure Segment:

Significant Impacts on Revenues (In millions)Revenues—2011 $ 1,108.3Net decreased volume (66.7)Impact of exited operations (60.6)Impact of foreign currency translation (43.7)

Revenues—2012 $ 937.3

Significant Impacts on Operating Loss:• As part of the annual goodwill impairment testing, this Segment recognized a non-cash goodwill impairment charge of $265.0

million.• Pre-tax restructuring charges of $88.6 million associated with the 2011/2012 Restructuring Program in 2012, compared with

pre-tax charges of $87.6 million in 2011.• Decreased volumes of erection and dismantling services due principally to lower industrial maintenance activities in North

America.• Overall softness in commercial construction.• These impacts were partially offset by the realization of benefits resulting from restructuring initiatives implemented in 2010

and 2011, as well as exiting unprofitable countries.• As part of the 2011/2012 Restructuring Program, this Segment recognized non-cash cumulative currency translation adjustment

gains of $10.9 million in 2012, associated with the exit from certain countries.• Foreign currency translation in 2012 decreased the results from operations for this Segment by $2.9 million compared with

2011.

Harsco Rail Segment:

Significant Effects on Revenues (In millions)Revenues—2011 $ 300.0Net increased volume 52.6Impact of foreign currency translation (0.6)

Revenues—2012 $ 352.0

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Significant Impacts on Operating Income:• This Segment's operating income for 2012 was lower than 2011 due principally to a pre-tax reduction of estimated costs of

approximately $8 million that occurred in the second quarter of 2011 related to the first phase of the Company's largeequipment order with the Ministry of Railways of China.

• Operating income was positively affected in 2012 by volume and timing of equipment deliveries to the China Ministry ofRailways driven by the customer's schedule.

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Harsco Industrial Segment:

Significant Effects on Revenues (In millions)Revenues—2011 $ 306.1Net increased price/volume 47.9Impact of foreign currency translation (1.4)

Revenues—2012 $ 352.6

Significant Effects on Operating Income:• Increased market demand with gains in market share in the principally energy-related markets.• Increased demand for grating products.• Partially offset by lower demand for industrial boilers.

Outlook, Trends and Strategies

Despite continued uncertainties throughout several major global economies, particularly in non-residential construction markets in theUnited Kingdom and certain Western European countries, as well as lower global steel production, the Company believes it is well-positioned to capitalize on opportunities in the short- to long-term based on its strong balance sheet, available liquidity and renewedfocus on generating stronger cash flows, as well as its demonstrated ability to execute appropriate countermeasures. Thesecountermeasures include ongoing cost-reduction initiatives, and the Company's Continuous Improvement and Lean Six Sigmaprograms, which have significantly reduced, and should continue to reduce, the Company's cost structure and further enhance itsfinancial strength without diminishing its services and products capabilities. The Company's expansion of its global footprint in targetedgrowth markets; its diversity of services and products in industries that are fundamental to global growth; its long-term mill services andminerals supply contracts; and the portability and mobility of its Harsco Infrastructure services equipment, help mitigate the Company'soverall long-term exposure to changes in the economic outlook in any single economy. However, any further deterioration of globaleconomies could still have an adverse impact on the Company's results of operations, financial condition and cash flows.

In the fourth quarter of 2011, the Company initiated the 2011/2012 Restructuring Program to further address the realignment of theCompany's Infrastructure business and strengthen the Harsco Metals & Minerals Segment. As previously disclosed in the Company'sAnnual Report on Form 10-K for the year ended December 31, 2011, the Company incurred approximately $101.0 million in pre-taxcharges under this program in 2011. In 2012, $94.5 million in pre-tax charges were incurred. Benefits under this program, in the form ofreduced costs, were $55 million in 2012 and are expected to be more than $63 million when annualized in 2013.

The following significant items, risks, trends and strategies are expected to affect the Company in 2013 and beyond:

• The Company will continue to place a strong focus on corporate-wide expansion into targeted emerging markets to grow andimprove the balance of its geographic footprint. More specifically, the Company's global growth strategies include steady,targeted expansion, particularly in Asia-Pacific, the Gulf Region of the Middle East and Africa and Latin America to furthercomplement the Company's already strong presence throughout Europe and North America. Growth is expected to be achievedthrough the provision of additional services to existing customers; new higher margin contracts in both developed and targetedgrowth markets; and targeted strategic ventures and partnerships in strategic countries and market sectors. This growth willcome both organically and through investments such as the previously announced Taiyuan Iron & Steel (Group) Co, Ltd.("TISCO") strategic venture in China, and recently-signed contracts in India. Over time, a balanced geographic footprintshould also benefit the Company through further diversification of its customer base.

• The Company expects strong cash flows from operating activities. In regard to the use of these cash flows, the Company'sintention is to take a balanced approach. The Company intends to continue to pay a regular cash dividend, which has been paidevery year since 1939. Second, the Company will continue to allocate capital expenditures to projects that have the appropriatelong-term return characteristics. The Company will continue to focus its Continuous Improvement and Lean Six Sigma effortson improving working capital management, including the management of accounts receivable and accounts payable balancesand reducing inventory levels.

• Management will continue to be very selective and disciplined in allocating capital, choosing projects with the highest EVApotential and return on capital employed. The Company expects capital expenditures in 2013 to be in line with capitalexpenditures in 2012.

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• The Company had a balance sheet debt to capital ratio of 52.9% at year-end 2012. The ratio has recently increased primarilydue to decreased equity resulting from the $265.0 million goodwill impairment charge recorded for the Harsco InfrastructureSegment in 2012, the restructuring charges incurred in 2012 and 2011 and pension liability adjustments in 2012 and 2011,including the deferred tax valuation allowance recorded related to U.K. pension liabilities in 2011. The Company expects thedebt to capital ratio to gradually improve in 2013 and beyond based on improved results of operations and cash flows.

• A majority of the Company's revenue is generated from customers located outside the United States, and a substantial portionof the Company's assets and employees are located outside the United States. United States income tax and internationalwithholding taxes have not been provided on undistributed earnings for certain non-U.S. subsidiaries as the Companyconsiders such earnings as indefinitely reinvested in the operations of those subsidiaries. Any tax reform that reduces theCompany's ability to defer U.S. taxes on profit indefinitely reinvested outside the United States could have a negative impacton the Company's ability to compete in the global marketplace. The Company will continue to monitor events in the U.S.Legislature for legislation that may affect the Company's results.

• The Company expects its effective income tax rate to approximate 30 percent for the full year 2013. This modest increase fromhistorical levels is due to losses from operations in certain jurisdictions where tax benefits will not be able to be recognized andthe geographic mix of income. Going forward, there may be some variability in the reported tax rate from quarter-to-quarterdepending on the actual geographic mix of earnings.

• Fluctuations in the U.S. dollar can have significant impacts in the Harsco Metals & Minerals and Harsco InfrastructureSegments, as approximately 80% of the revenues generated in these Segments are outside the United States.

• Volatility in energy and commodity costs (e.g., diesel fuel, natural gas, steel, etc.) and worldwide demand for thesecommodities could impact the Company's operations, both in cost increases or decreases to the extent that such increases ordecreases are not passed on to customers. However, volatility in energy and commodity costs may provide additional serviceopportunities for the Harsco Metals & Minerals Segment as customers may outsource more services to reduce overall costs.Volatility may also affect opportunities in the Harsco Infrastructure Segment for additional plant maintenance and capitalimprovement projects. Similarly, natural gas price volatility may affect opportunities in the Harsco Industrial Segment.

Harsco Metals & Minerals Segment:• The Harsco Metals & Minerals Segment experienced a reduction in customer steel production in 2012. The Company does not

expect a material increase in steel production or pricing in 2013. Offsetting this are expected continued benefits from prior costsavings initiatives and incremental benefits in the latter part of 2013 from new contracts signed in China and India.

• The Company will continue its recent practice of ensuring contract renewals are expected to meet certain profitabilityrequirements. In addition, the Company will focus on winning contracts in emerging markets where steel production isincreasing and where the customers value the Company's environmental solutions. Given this strategy, the possibility existsthat additional contracts may not be renewed resulting in exit costs during the period in which such decisions are finalized.

• Longer-term, an example of the execution of the Company's strategy is the 25-year environmental solutions contract for on-sitemetal recovery in China that was awarded in July 2011 to the Company's venture with TISCO. This contract will effectivelyaddress the environmentally-beneficial processing and metal recovery of TISCO's stainless and carbon steel slag productionby-products across a range of potential commercial applications. The Company anticipates that the venture has the potential togenerate initial year new revenues of approximately $18 million as operations ramp-up in the first quarter of 2013,approximately $30 million in subsequent years and ramping up to a projected run rate of approximately $50 million to $60million per year when fully operational. The Company and TISCO will respectively share a 60%-40% relationship in thepartnership and the Company consolidates the financial statements of the venture.

• In June 2012, the Company announced a new 20-year environmental services contract for the environmentally-beneficialhandling and processing of steelmaking by-products with Tangshan Iron & Steel, the flagship site of China's largest steelmaker,Hebei Iron & Steel (HBIS) Group, the second largest producer of steel in the world. This contract significantly expandsHarsco's existing resource recovery services at the Tangshan works under a new strategic venture relationship led by Harscothat focuses directly on improving the surrounding environment from steelmaking operations.

• The industrial abrasives and roofing granules business within the Harsco Metals & Minerals Segment generates value bycollecting and processing boiler slag, a coal combustion by-product ("CCP"), into commercially useful products that put thismaterial to beneficial use in products such as roofing materials and blasting abrasives. In May 2010, the EnvironmentalProtection Agency ("EPA") released a proposed rule that set out two different options with regard to the regulation of CCPsproduced by coal-fired utility boilers. One option would regulate CCPs as hazardous waste when the CCPs are destined fordisposal in landfills and surface impoundments. The second option would regulate the disposal of CCPs as solid waste byissuing minimum national criteria for proper management of these nonhazardous,

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solid wastes. Neither proposal changes the EPA's prior determination that beneficially used CCPs, including the Company'sproducts, are exempt from the hazardous waste regulations. The adoption, terms and timing of any new regulation controllingdisposal of CCPs remain uncertain, however, and there can be no assurance that any CCP regulation will continue to providefor an exemption for beneficial use of CCPs. The Company will continue to closely monitor the EPA's proposal.

• Further consolidation in the global steel industry is possible. Should additional consolidations occur involving some of thesteel industry's larger companies that are customers of the Company, it could result in an increase in concentration of revenuesand credit risk for the Company. If a large customer were to experience financial difficulty, or file for bankruptcy orreceivership protection, or if the Company were unable to collect amounts due from customers that are currently underbankruptcy or receivership protection, it could adversely impact the Company's income, cash flows and asset valuations. Aspart of its credit risk management practices, the Company closely monitors the credit standing and accounts receivable positionof its customer base. Further consolidation may also increase pricing pressure on the Company and the competitive risk ofservices contracts that are due for renewal. Additionally, disputes with customers, including attempts by major customers tounilaterally change the terms and pricing of certain contracts, may adversely affect the Company's results. Conversely, suchconsolidation may provide additional service opportunities for the Company as the Company believes it is well-positionedcompetitively. As a result of this customer concentration, a key strategy of the Company is to diversify its customer base andexpand to emerging market customers.

• The Company will emphasize prudent global expansion of its reclamation and recycling business for extracting high-valuemetallic content from slag and responsibly handling and recycling residual materials. Environmental services provide growthopportunities in the reclamation and recycling business as additional outsourced functions in slag management of stainless steeland other high-value metals arise.

Harsco Infrastructure Segment:• The Company expects the Harsco Infrastructure Segment to realize a steady year-over-year improvement in operating

performance as it globally focuses on yard management and leveraging engineering/design capabilities. This Segment isexpected to continue to realize the benefits from the successful implementation of the Fourth Quarter 2010 HarscoInfrastructure Restructuring Program and the 2011/2012 Restructuring Program.

• The Company continues to reposition the Harsco Infrastructure Segment and is focusing increasingly on projects in the globalindustrial maintenance and civil infrastructure construction sectors, and on developing this business in economies outside theUnited States and Western Europe that have greater prospects for both near-term and long-term growth. The Segment has beenshifting from small, essentially independent branches that serve smaller projects to an integrated business with resources ableto focus on larger projects that will have a longer duration and which require highly engineered solutions. Local focus on thecustomer will continue, but customer service should improve through coordinated asset management, sales effectiveness andoperational excellence.

• Uncertainties remain in key end markets, particularly in the United Kingdom, several other European countries and, to a lesserdegree, the United States. The Company does not expect material improvement in this Segment's end markets in 2013.

Harsco Rail Segment:• The short-term outlook for this business will be unfavorably impacted by the timing of shipments for its large China Ministry

of Railways orders, which is expected to be completed during the first quarter of 2013. Compared with 2012, revenues for thisbusiness are expected to decline approximately $50 million in 2013 due to the completion of this order. The success in Chinahas been leveraged to secure several new orders in other geographies, as well as with multiple metro systems in China;however, none of the orders are as large as the Ministry of Railways.

• The longer-term outlook for this Segment continues to be favorable. The global demand for railway maintenance-of-wayequipment, parts, and services continues to be strong, giving positive indication of further opportunities for this Segment.

• The Harsco Rail Segment expects to develop a larger presence in certain developing countries as track construction andmaintenance needs grow. Additionally, sales opportunities along with strategic acquisitions and/or joint ventures in the HarscoRail Segment will be considered if the appropriate strategic opportunities arise.

• The Harsco Rail Segment recently announced several new international orders including a rail grinder equipment order fordelivery in late 2014 with an interim services agreement in Italy, and a Track Renewal Train equipment order for delivery inearly 2014 in India.

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Harsco Industrial Segment:• The Harsco Industrial Segment is expecting another year of consistent performance for revenue and operating income in 2013,

and will continue to focus on product innovation and development to drive strategic growth in its businesses.• Worldwide supply and demand for steel and other commodities impact raw material costs for the Harsco Industrial Segment. The

Company has implemented strategies to help mitigate, but not eliminate, the potential impact that changes in steel and othercommodity prices could have on operating income. If steel or other commodity costs associated with the Company'smanufactured products increase and the costs cannot be passed on to the Company's customers, operating income would beadversely affected. Conversely, reduced steel and other commodity costs would improve operating income to the extent suchsavings are not transferred to customers.

• The air-cooled heat exchanger business of the Harsco Industrial Segment is dependent on a small group of key customers. Theloss of one of these customers due to competition or due to financial difficulty, or the filing for bankruptcy protection, couldadversely impact the Company's income, cash flows and asset valuations. As part of its credit risk management practices, theCompany closely monitors the credit standing and accounts receivable position of its customer base. Longer term, globaldiversification should reduce customer concentration.

Results of Operations for 2012, 2011 and 2010

(In millions, except per share information and percentages) 2012 2011 2010

Revenues from continuing operations $ 3,046.0 $ 3,302.7 $ 3,038.7Cost of services and products sold 2,349.5 2,570.6 2,336.9Selling, general and administrative expenses 503.3 535.7 532.6Goodwill impairment charge 265.0 — —Other expenses 93.8 102.7 86.5Operating income (loss) from continuing operations (174.8) 87.6 78.4Interest expense (47.4) (48.7) (60.6)Income tax expense from continuing operations (35.3) (49.8) (4.3)Income (loss) from continuing operations (253.2) (7.5) 16.6Diluted earnings (loss) per common share from continuing operationsattributable to Harsco Corporation common stockholders (3.15) (0.12) 0.13Effective income tax rate for continuing operations (16.1)% 119.6% 20.9%

Comparative Analysis of Consolidated Results

RevenuesRevenues for 2012 decreased $256.7 million or 8% from 2011. This decrease was attributable to the following significant items:

Changes in Revenues - 2012 vs. 2011 (In millions)

Impact of foreign currency translation. $ (123.0)Exited underperforming contracts in the Harsco Metals & Minerals Segment. (68.1)Net decreased revenues in the Harsco Infrastructure Segment due principally to decreased volumes in erection anddismantling services. (66.7)Impact of exited operations in the Harsco Infrastructure Segment. (60.6)Net decreased revenues in the Harsco Metals & Minerals Segment due decreased steel production by customers. (38.8)Net increased revenues in the Harsco Rail Segment due principally to increased equipment deliveries. 52.6Increased market demand with gains in market share and overall economic improvement in the principally energy-related markets served by these businesses in the Harsco Industrial Segment. 47.9Total change in revenues - 2012 vs. 2011 $ (256.7)

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Revenues for 2011 increased $264.1 million or 9% from 2010. This increase was attributable to the following significant items:

Changes in Revenues - 2011 vs. 2010 (In millions)

Effect of foreign currency translation. $ 103.6Net increased volumes in the Harsco Industrial Segment due principally to improved markets in the natural gasindustry and the industrial grating business. 74.1Net increased revenues in the Harsco Metals & Minerals Segment due principally to increased steel productionvolumes by the Company's carbon steel mill site customers. 69.3Net increased revenues in the Harsco Infrastructure Segment due principally to increased volumes of erection anddismantling services. 43.2Net decreased revenues in the Harsco Rail Segment due principally to the timing and mix of rail equipmentshipments in 2011 compared with 2010. (16.5)Impact of the sale of two lines of business in the Harsco Infrastructure Segment. (9.5)Other. (0.1)Total Change in Revenues 2011 vs. 2010 $ 264.1

Cost of Services and Products SoldCost of services and products sold for 2012 decreased $221.1 million or 9% from 2011. This decrease was attributable to the followingsignificant items:

Change in Cost of Services and Products Sold - 2012 vs. 2011 (In millions)

Effect of foreign currency translation. $ (96.0)Decreased costs due to changes in revenues (exclusive of the effect of foreign currency translation, and includingthe impact of restructuring program savings and the impact of fluctuations in commodity costs included in sellingprices). (66.1)Effect of exited operations in the Harsco Infrastructure Segment. (51.1)Other. (7.9)

Total Change in Cost of Services and Products Sold 2012 vs. 2011 $ (221.1)

Cost of services and products sold for 2011 increased $233.8 million or 10% from 2010. This increase was attributable to the followingsignificant items:

Change in Cost of Services and Products Sold - 2011 vs. 2010 (In millions)

Increased costs due to changes in revenues (exclusive of the effect of foreign currency translation, and including theimpact of increased energy and fluctuations in commodity costs included in selling prices). $ 101.1Impact of foreign currency translation. 82.3Principally unfavorable product mix and higher commodity costs, net of approximately $9 million of restructuringsavings. 50.4

Total Change in Cost of Services and Products Sold 2011 vs. 2010 $ 233.8

Selling, General and Administrative ExpensesSelling, general and administrative expenses for 2012 decreased $32.3 million or 6% from 2011. This increase was attributable to thefollowing significant items:

Changes in Selling, General and Administrative Expenses - 2012 vs. 2011 (In millions)

Decreased compensation expense due to the realization of cost savings benefits from restructuring activities andexited operations in the Harsco Infrastructure Segment. $ (25.5)Effect of foreign currency translation. (16.8)Decreased professional fees. (5.1)Increased commissions primarily due to higher sales in the Harsco Rail and Harsco Industrial Segment. 7.6

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Higher bad debt expense. 3.5Other. 4.0

Total Change in Selling, General and Administrative Expenses 2012 vs. 2011 $ (32.3)

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Selling, general and administrative expenses for 2011 increased $3.1 million or 1% from 2010. This increase was attributable to thefollowing significant items:

Changes in Selling, General and Administrative Expenses - 2011 vs. 2010 (In millions)

Impact of foreign currency translation. $ 17.2Change in compensation. The increase in 2011 is due to compensation increases as a result of overall businessimprovement. This is partially offset by a decrease in compensation expense in the Harsco Infrastructure Segment,primarily in the third and fourth quarters of 2011, principally as the result of the realization of costs savings benefitsfrom the restructuring activities implemented in the fourth quarter of 2010. 6.5Lower professional fees, principally due to lower legal fees and global supply chain costs. (4.0)Lower insurance expense. (3.1)Lower bad debt expense. (2.5)Change in sales commissions primarily due to the timing of and an overall lower level of rail equipment shipmentsin 2011 compared with 2010. (1.6)Other, net (primarily due to spending reductions and restructuring savings). (9.4)

Total Change in Selling, General and Administrative Expenses 2011 vs. 2010 $ 3.1

Goodwill Impairment ChargeIn the fourth quarter of 2012, the Company recorded a goodwill impairment charge of $265.0 million in its Harsco InfrastructureSegment as a result of its annual impairment testing procedures. Please see Application of Critical Accounting Policies under Part II,Item 7, "Management's Discussion and Analysis of Financial Condition and Result of Operations," for further discussion regarding thegoodwill impairment charge.

Other ExpensesThis income statement classification includes: restructuring costs for employee termination benefit costs, impaired asset write-downs,product rationalization and costs to exit activities; net gains on the disposal of non-core assets; currency translation adjustmentsrecognized in earnings; and business combination accounting adjustments for contingent consideration related to acquisitions by theCompany. The most significant change in Other expenses relates to restructuring costs that were incurred principally in the HarscoInfrastructure Segment. Additional information on Other expenses is included in Note 16, Other Expenses, to the ConsolidatedFinancial Statements under Part II, Item 8, “Financial Statements and Supplementary Data."

During 2012, 2011 and 2010, the Company recorded pre-tax Other expenses of $93.8 million, $102.7 million and $86.5 million,respectively. The major components of this income statement category are as follows:

Other (Income) Expenses

(In thousands) 2012 2011 2010

Net gains $ (5,848) $ (6,162) $ (7,792)Contingent consideration adjustments — (3,966) (10,620)Employee termination benefits costs 31,158 36,174 24,816Costs to exit activities 38,626 10,007 34,384Product line rationalization 24,966 66,063 34,302Impaired asset write-downs 7,152 — 9,966Other (income) expense (2,278) 624 1,417

Total $ 93,776 $ 102,740 $ 86,473

Interest Expense

2012 vs. 2011Interest expense in 2012 was $47.4 million, a decrease of $1.4 million or 3% compared with 2011. The decrease primarily reflectsfluctuations in foreign currency exchange rates and decreased financing costs associated with the renewed revolving credit facility,partially offset by higher outstanding net borrowings.

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2011 vs. 2010Interest expense in 2011 was $48.7 million, a decrease of $11.9 million or 20% compared with 2010. The decrease compared with 2010was primarily due to an October 2010 debt refinancing, which resulted in a lower interest expense.

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Income Tax Expense from Continuing Operations

2012 vs. 2011Income tax expense from continuing operations in 2012 was $35.2 million, a decrease of $14.6 million or 29% compared to 2011. Thedecrease is mainly due to a change in realizability of the beginning of the year deferred tax assets of $37.3 million primarily related tothe Company's U.K. deferred tax assets on its U.K pension obligations recorded in 2011 that was not repeated in 2012 offset by achange in the geographic mix of earnings for year 2012 compared with prior years primarily due to losses from operations andrestructuring charges in certain jurisdictions where tax benefits are not more likely than not to be recognized. The effective income taxrate relating to continued operations for 2012 was (16.1)% versus 119.6% for 2011. The decrease in the effective income tax rate for2012 compared with 2011 is the result of certain discrete items, including: a non-deductible goodwill impairment charge of $265.0million for which the Company has no tax basis as a result of historical stock acquisitions; and a change in the realizability of beginningof the year deferred tax assets of $37.3 million primarily related to the Company's U.K. deferred tax assets on its U.K. pensionobligations in 2011 that were not repeated in 2012. The decrease in the effective tax rate for 2012 compared with 2011 was offset by achange in the geographic mix of earnings for year 2012 compared with prior years primarily due to losses from operations andrestructuring charges in certain jurisdictions where tax benefits will not be able to be recognized; and the reduction in tax benefits fromthe lapse of several statutes of limitations for uncertain tax positions in 2012 compared to 2011.

2011 vs. 2010Income tax expense from continuing operations in 2011 was $49.8 million, an increase of $45.6 million or 1,066% compared to 2010.The increase was mainly due to higher earnings from continuing operations and an increase in valuation allowances being recordedagainst deferred tax assets primarily for the Company's U.K. pension liabilities, offset by tax benefits from the lapse of several statutesof limitations for uncertain tax positions. The effective income tax rate relating to continued operations for 2011 was 119.6% versus20.9% for 2010. The increase in the effective income tax rate for 2011 compared with 2010 is the result of certain discrete items,including: a change in the realizability of beginning of the year deferred tax assets of $37.3 million primarily related to the Company'sU.K. deferred tax assets on its U.K. pension obligations; the tax benefit of $3.5 million for deferred charges from historicalintercompany sales of inventory recorded in 2010 and not repeated in 2011 and a change in the earnings mix of the Company for year2011 compared with prior years primarily due to the jurisdictional impact of the Company's restructuring charges. These increases in theeffective income tax rate for 2011 compared with 2010 were offset by: the tax costs associated with the 2010 change in permanentreinvestment assertion of $1.9 million; and the lapse of several statutes of limitations for uncertain tax positions in 2011 that produced atax benefit of $10.8 million.

For additional detail, see Note 10, Income Taxes, to the Consolidated Financial Statements under Part II, Item 8, “Financial Statementsand Supplementary Data."

Loss from Continuing Operations

2012 vs. 2011A loss from continuing operations in 2012 of $253.2 million was $245.7 million higher than the loss from continuing operations in 2011of $7.5 million. This increase principally resulted from a pre-tax $265.0 million goodwill impairment charge in the HarscoInfrastructure Segment as described above. This was partially offset by improved markets in the natural gas and industrial gratingbusiness in the Harsco Industrial Segment.

2011 vs. 2010A loss from continuing operations in 2011 of $7.5 million was $24.1 million lower than income from continuing operations in 2010 of$16.6 million. This decrease principally resulted from a pre-tax $100.8 million restructuring charge for the 2011/2012 RestructuringProgram and a non-cash tax charge against the Company's U.K. deferred tax assets of approximately $37 million, as described above.This was partially offset by improved markets in the natural gas and industrial grating business in the Harsco Industrial Segment and bythe realization of cost savings benefits from the Fourth Quarter 2010 Harsco Infrastructure Program.

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Liquidity and Capital Resources

OverviewThe Company continues to have sufficient available liquidity and has been able to obtain all necessary financing. The Companycurrently expects operational and business needs to be met by cash from operations supplemented with borrowings from time to timedue to historical patterns of seasonal cash flow and for the funding of various projects.

The Company continues to implement and perform on capital efficiency initiatives to enhance liquidity. These initiatives have included:prudent reduction of capital spending to projects where the highest returns can be achieved while redeploying existing capitalinvestments; optimization of worldwide cash positions; reductions in discretionary spending; and frequent evaluation of customer andbusiness-partner credit risk. These initiatives have been successful in helping counteract strained global financial markets. While globalfinancial markets have improved for certain highly rated credit issuers, the stresses the markets have been under since 2008 are stillreflected in tightened credit conditions for the funding of non-residential construction projects, particularly commercial construction.These tightened credit conditions, along with the sovereign debt crisis in Europe and economic austerity measures implemented in theUnited Kingdom and other European economies, have restrained growth in the Harsco Infrastructure Segment. These unfavorableconditions in the credit markets also continue to affect some of the Company's current and potential customers.

During 2012, the Company generated $198.9 million in operating cash flow, a decrease from the $298.8 million generated in 2011.Approximately $81.3 million of cash was disbursed in 2012 for restructuring costs associated with the Fourth Quarter 2010 HarscoInfrastructure Program and the 2011/2012 Restructuring Program compared to $22.6 million in 2011. In 2012, the Company invested$265.0 million in capital expenditures, mostly for the Metals & Minerals Segment (approximately 48% of the total capital expenditureswere for revenue-growth projects), compared with $313.1 million invested in 2011. The Company paid $66.1 million in stockholderdividends in both 2012 and 2011.

The Company's net cash borrowings increased by $58.0 million in 2012 principally due to the cash payments related to restructuringprograms, primarily in the Harsco Infrastructure Segment. The Company's debt to total capital ratio increased to 52.9% at December 31,2012 from 42.7% at December 31, 2011. The increase at year-end 2012 is primarily due to decreased equity resulting from a goodwillimpairment charge recorded during the fourth quarter of 2012.

The Company plans to sustain its balanced portfolio through its strategy of redeploying discretionary cash for disciplined organicgrowth and international or market-segment diversification; for potential strategic ventures, alliances and partnerships; for growth inlong-term, higher-return service contracts for the Harsco Metals & Minerals Segment, principally in targeted growth markets or forcustomer diversification; and for strategic investments or possible acquisitions in the Harsco Rail Segment and Harsco IndustrialSegment. The Company also foresees continuing its long and consistent history of paying dividends to stockholders.

The Company continues its focus on improving working capital efficiency. The Company's Continuous Improvement initiatives arebeing used to continue to further improve the effective and efficient use of working capital, particularly accounts receivable andinventories.

The Company generated $49.8 million in cash flow from asset sales in 2012 compared with $42.7 million in 2011. While the Companyplans to continue to supplement cash from operations with future assets sales, included in these amounts are $18.0 million and $25.2million for 2012 and 2011, respectively, of assets sales associated with restructuring programs that will not repeat in future years.

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Cash RequirementsThe following summarizes the Company's expected future payments related to contractual obligations and commercial commitments atDecember 31, 2012:

Contractual Obligations and Commercial Commitments at December 31, 2012 (a)

Payments Due by Period

(In millions) TotalLess than

1 year1-3

years3-5

yearsAfter 5years

Short-term borrowings $ 8.6 $ 8.6 $ — $ — $ —Long-term debt (including currentmaturities and capital leases) 960.7 192.6 267.1 52.7 448.3Projected interest payments on long-term debt (b) 169.5 41.1 66.7 53.0 8.6Pension benefit payments (c) 732.0 65.8 134.3 143.1 388.8Operating leases (non-cancellable) 135.6 41.9 54.3 28.3 11.1Purchase obligations (d) 137.5 130.3 5.0 2.2 —Cross currency interest rate swaps (e) 611.8 27.3 53.2 53.6 477.8Foreign currency forward exchangecontracts (f) 434.1 434.1 — — —

Total contractual obligations (g) $ 3,189.8 $ 941.7 $ 580.6 $ 332.8 $ 1,334.6(a) See Note 7, Debt and Credit Agreements; Note 8, Leases; Note 9, Employee Benefit Plans; Note 10, Income Taxes; and Note 14, Financial Instruments, to the

Consolidated Financial Statements under Part II, Item 8, "Financial Statements and Supplementary Data," for additional disclosures on short-term borrowingsand long-term debt; operating leases; pensions; income taxes; and cross currency interest rate swaps and foreign currency forward exchange contracts,respectively.

(b) The total projected interest payments on long-term debt are based upon borrowings, interest rates and foreign currency exchange rates at December 31, 2012.The interest rates on variable-rate debt and the foreign currency exchange rates are subject to changes beyond the Company's control and may result in actualinterest expense and payments differing from the amounts projected above.

(c) Amounts represent expected benefit payments by the defined benefit plans for the next 10 years.(d) Purchase obligations represent legally-binding obligations to purchase property, plant and equipment, inventory and other commitments made in the normal

course of business to meet operations requirements. Purchase obligations are generally expected to be fulfilled within one year.(e) This amount represents the notional value of the cross currency interest rate swaps outstanding at December 31, 2012. Due to the nature of these contracts,

there will be offsetting cash flows of approximately $647.7 million to these obligations. The cross currency interest rate swaps are recorded on theConsolidated Balance Sheets at fair value.

(f) This amount represents the notional value of the foreign currency exchange contracts outstanding at December 31, 2012. Due to the nature of these contracts,there will be offsetting cash flows of approximately $433.2 million to these obligations, with the difference recognized as a gain or loss in the ConsolidatedStatements of Operations.

(g) At December 31, 2012, in addition to the above contractual obligations, the Company had approximately $32.9 million of potential long-term tax liabilities,including interest and penalties, related to uncertain tax positions. Because of the high degree of uncertainty regarding the future cash flows associated withthese potential long-term tax liabilities, the Company is unable to estimate the years in which settlement will occur with the respective taxing authorities. Theselong-term tax liabilities may be partially offset by loss carry forwards of $9.0 million which may be recognized upon the resolution of certain uncertain taxpositions.

Off-Balance Sheet ArrangementsThe following table summarizes the Company's contingent commercial commitments at December 31, 2012. These amounts are notincluded on the Company's Consolidated Balance Sheets since there are no current circumstances known to management indicating thatthe Company will be required to make payments on these contingent obligations.

Commercial Commitments at December 31, 2012

Amount of Commitment Expiration Per Period

(In millions) TotalLess than

1 Year1-3

Years3-5

YearsOver 5Years

IndefiniteExpiration

Standby letters ofcredit $ 106.6 $ 101.6 $ 2.8 $ 2.2 $ — $ —Guarantees 99.2 10.2 6.8 — 7.0 75.3Performance bonds 9.4 1.2 — — — 8.1

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Other commercialcommitments 11.1 — — — — 11.1Total commercialcommitments $ 226.3 $ 113.0 $ 9.6 $ 2.2 $ 7.0 $ 94.5

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Certain commercial commitments that are of a continuous nature do not have an expiration date and are therefore considered to beindefinite in nature. Please refer to Note 14, Financial Instruments, to the Consolidated Financial Statements under Part II, Item 8,"Financial Statements and Supplementary Data," for additional disclosures related to off-balance sheet agreements.

Sources and Uses of CashThe Company's principal sources of liquidity are cash from operations, issuance of commercial paper and borrowings under its variouscredit agreements, augmented periodically by cash proceeds from asset sales. The primary drivers of the Company's cash flow fromoperations are the Company's revenues and income. The Company's long-term Harsco Metals & Minerals Segment contracts, inaddition to the backlog of certain equipment orders within the Harsco Rail Segment, provide predictable cash flows for the near-termyears. Cash returns on capital investments made in prior years, for which limited cash is currently required, are a significant source ofcash from operations. Depreciation expense related to these investments is a non-cash charge. The Company also continues to maintainworking capital at a manageable level based upon the requirements and seasonality of the businesses.

Major uses of operating cash flows and borrowed funds include: capital investments, principally in the Harsco Metals & MineralsSegment; payroll costs and related benefits; dividend payments; pension funding payments; inventory purchases for the Harsco Rail andHarsco Industrial Segments; income tax payments; debt principal and interest payments; insurance premiums and payments of self-insured casualty losses; machinery, equipment, automobile and facility lease payments; and in 2012 significant payments under the2011/2012 Restructuring Program. Cash may also be used for targeted, strategic acquisitions as appropriate opportunities arise.

Resources Available for Cash RequirementsThe Company meets its ongoing cash requirements for operations and growth initiatives by utilizing cash from operations; issuance ofcommercial paper and borrowings under the Company's various credit agreements augmented periodically by cash proceeds from assetsales. Public markets in the United States and Europe are accessed through the Company's commercial paper programs and throughdiscrete-term note issuance to investors. The Company has various bank credit facilities that are available throughout the world. TheCompany expects to utilize public debt markets, bank credit facilities and cash from operations to meet its cash requirements in thefuture.

The following table illustrates the amounts outstanding under credit facilities and commercial paper programs and available credit atDecember 31, 2012:

Summary of Credit Facilities and Commercial Paper Programs at December 31, 2012

(In millions) Facility LimitOutstanding

BalanceAvailable

Credit

U.S. commercial paper program $ 550.0 $ 39.5 $ 510.5Euro commercial paper program 263.9 — 263.9Multi-year revolving credit facility (a) 525.0 50.0 475.0

Totals $ 1,338.9 $ 89.5 $ 1,249.4 (b)

(a) U.S.-based program.(b) Although the Company has significant available credit, for practical purposes, the Company limits aggregate commercial paper and credit facility borrowings

at any one-time to a maximum of $525 million (the amount of the back-up facility).

In March 2012, the Company entered into an Amended and Restated Five Year Credit Agreement (“Credit Agreement”) in the amountof $525 million through a syndicate of 14 banks. The Credit Agreement matures in March 2017. The Company has the option toincrease the amount of the Credit Agreement to $550 million. The Credit Agreement amends and restates the Company’s multi-yearrevolving credit facility, which was set to mature in December 2012. There were no borrowings outstanding under the multi-yearrevolving credit facility upon execution of the Credit Agreement. There was $50.0 million outstanding under the Credit Agreement atDecember 31, 2012. Borrowings under the Credit Agreement are available in most major currencies with active markets and at interestrates based upon LIBOR, plus a margin.

The Company's $25 million bilateral credit facility expired in December 2012 and was not renewed. At December 31, 2012 and 2011,there were no borrowings outstanding on this facility.

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At December 31, 2012, the Company's 5.125% notes due September 15, 2013 are classified as long-term debt on the ConsolidatedBalance Sheets based on the Company's intent and ability to refinance this debt using either the debt capital markets or borrowingsunder its Credit Agreement.

See Note 7, Debt and Credit Agreements, to the Consolidated Financial Statements under Part II, Item 8, "Financial Statements andSupplementary Data," for more information on the Company's credit facilities and commercial paper programs.

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Credit Ratings and OutlookThe following table summarizes the Company's current debt ratings:

Rating Agency Long-term NotesU.S.-Based

Commercial Paper Watch / Outlook

Standard & Poor's (S&P) BBB A-2 Negative OutlookMoody's Baa3 P-3 Negative WatchFitch BBB F3 Negative Outlook

The Company's euro commercial paper program has not been rated since the euro market does not require it. In December 2012, S&Preaffirmed the Company's ratings and Moody's placed the Company's ratings on negative watch. A downgrade to the Company's creditratings may increase borrowing costs to the Company, while an improvement in the Company's credit ratings may decrease borrowingcosts to the Company. Additionally, future downgrades in the Company's credit ratings may result in reduced access to credit markets.

Working Capital PositionChanges in the Company's working capital are reflected in the following table:

(Dollars are in millions)December 31

2012December 31

2011Increase

(Decrease)

Current AssetsCash and cash equivalents $ 95.3 $ 121.2 $ (25.9)Trade accounts receivable, net 600.3 618.5 (18.2)Other receivables, net 39.8 44.4 (4.6)Inventories 236.5 241.9 (5.4)Other current assets 94.6 133.4 (38.8)

Total current assets 1,066.4 1,159.4 (93.0)Current Liabilities

Notes payable and current maturities 11.8 55.0 (43.1)Accounts payable 221.5 252.3 (30.9)Accrued compensation 94.4 92.6 1.8Income taxes payable 10.1 8.4 1.7Other current liabilities 299.8 374.0 (74.2)

Total current liabilities 637.6 782.3 (144.7)Working Capital $ 428.9 $ 377.2 $ 51.7

Current Ratio (a) 1.7:1 1.5:1(a) Calculated as Current assets / Current liabilities

Working capital increased 13.7% in 2012 due principally to the following factors:

• Other current liabilities decreased $74.2 million primarily due to a decrease in customer advances related to the delivery ofcertain machines in the Harsco Rail Segment, the timing of payment for non-income taxes and the timing of restructuringpayments;

• Notes payable and current maturities decreased $43.1 million primarily due to the timing of repayment intentions on certainoutstanding debt; and

• Accounts payable decreased $30.9 million due to timing of payments.

These factors were partially offset by the following:

• Other current assets decreased $38.8 million primarily due to a reduction in prepayments related to certain customer contractsand a reduction in assets held for sale as the result of asset sales;

• Cash and cash equivalents decreased $25.9 million. Please refer to Summarized Cash Flow Information below for additionalinformation related to the decrease in Cash and cash equivalents; and

• Trade accounts receivable, net decreased $18.2 million due to the timing of collections and lower year-over-year sales.

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Certainty of Cash FlowsThe certainty of the Company's future cash flows is underpinned by the long-term nature of the Company's metals services contracts,the order backlog for the Company's railway track maintenance services and equipment, and overall discretionary cash flows (operatingcash flows plus cash from asset sales in excess of the amounts necessary for capital expenditures to maintain current revenue levels)generated by the Company. Historically, the Company has utilized these discretionary cash flows for growth-related capitalexpenditures, strategic acquisitions, debt repayment and dividend payments.

At December 31, 2012, the Company's metals services contracts had estimated future revenues of $4.9 billion at expected productionlevels, compared with $3.7 billion at December 31, 2011. This is primarily due to a number of new contracts and contract extensionssigned with various customers during 2012. At December 31, 2012, the Company's railway track maintenance services and equipmentbusiness had estimated future revenues of $180.3 million compared with $261.6 million at December 31, 2011. This change is primarilydue to shipment of orders during 2012, partially offset by new orders. The railway track maintenance services and equipment businessincludes items with long lead-times necessary to build certain equipment. In addition, at December 31, 2012, the Company had an orderbacklog of $98.4 million in the Harsco Industrial Segment. This compares with $104.6 million at December 31, 2011. The decreasefrom December 31, 2011 is due principally to decreased demand in natural gas markets. Order backlog for scaffolding, shoring andforming services; for roofing granules and slag abrasives; and for the reclamation and recycling services of high-value content fromsteelmaking slag is excluded from the above amounts. These amounts are generally not quantifiable due to the short order lead times forcertain services, the nature and timing of the products and services provided and equipment rentals with the ultimate length of the rentalperiod unknown.

The types of products and services that the Company provides are not subject to rapid technological change, which increases thestability of related cash flows. Additionally, the Company believes each of its businesses in its balanced portfolio is a leader in theindustries and major markets the Company serves. Due to these factors, the Company is confident in its future ability to generatepositive cash flows from operations.

Cash Flow SummaryThe Company's cash flows from operating, investing and financing activities, as reflected on the Consolidated Statements of CashFlows, are summarized in the following table:

Summarized Cash Flow Information

(In millions) 2012 2011 2010

Net cash provided by (used in):Operating activities $ 198.9 $ 298.8 $ 401.4Investing activities (219.3) (255.8) (202.0)Financing activities (4.5) (39.6) (171.5)Effect of exchange rate changes on cash (1.0) (6.5) 2.2

Net change in cash and cash equivalents $ (25.9) $ (3.1) $ 30.1

Cash From Operating Activities—Net cash provided by operating activities in 2012 was $198.9 million, a decrease of $99.9 millionfrom 2011. The decrease was primarily due to increased cash outflows associated with the 2011/2012 Restructuring Program and theFourth Quarter 2010 Harsco Infrastructure Program and net increased working capital. Net cash provided by operating activities in 2011was $298.8 million, a decrease of $102.7 million from 2010. The decrease was primarily due to increased notes and accounts receivable,contributions to defined benefit pension plans of $32.4 million in 2011 compared with $19.2 million in 2010, as well as $19.7 million ofcash payments in 2011 related to the Fourth Quarter 2010 Harsco Infrastructure Program and lower net income in 2011 as comparedwith 2010.

Included in the Cash flows from operating activities section of the Consolidated Statement of Cash Flows is the caption Other, net. Forthe year ended December 31, 2012 the decrease in this line item was $27.1 million. This caption consists principally the non-cashimpact of gains and losses on the sale of assets not included in the 2011/2012 Restructuring Program, as well as $10.9 million of non-cash cumulative currency translation adjustment gains associated with the exit of from certain countries in 2012.

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Also included in the Cash flows from operating activities section of the Consolidated Statement of Cash Flows is the caption Otherassets and liabilities. For the years ended December 31, 2012, 2011 and 2010 the decreases in this line item were $51.4 million, $52.6million and $19.0 million, respectively. The major components of this caption include the net impact of defined benefit pension planfunding and fluctuations in advances from customers and vendor prepayments. A summary of these components for the years presentedis as follows:

(in millions) 2012 2011 2010

Net cash provided by (used in):Change in net defined benefit pension liabilities $ (12.7) $ (19.6) $ (2.9)Change in advance on contracts to customers (63.9) (17.1) (20.8)Change in prepaid expenses 30.2 (6.9) 0.1Other (5.0) (9.0) 4.6

Total $ (51.4) $ (52.6) $ (19.0)

Cash Used in Investing Activities—In 2012, cash used in investing activities was $219.3 million consisting primarily of capitalinvestments of $265.0 million. Capital investments decreased $48.1 million compared with 2011. In 2011, cash used in investingactivities was $255.8 million consisting principally of capital investments of $313.1 million. Capital investments increased $120.8million compared with 2010.

Cash Used in Financing Activities—In 2012, cash used in financing activities was $4.5 million, a decrease of $35.0 million from 2011.The decrease was primarily due to increased commercial paper borrowings and use of the Company's multi-year revolving creditfacility. Cash used in financing activities in 2011 was $39.6 million, a decrease of $132.0 million from 2010. The decrease wasprimarily due to repayment of the Company's 200 million British pound sterling-denominated notes that matured October 27, 2010.

The following table summarizes the Company's debt and capital positions at December 31, 2012 and 2011:

(Dollars are in millions)December 31

2012December 31

2011

Notes payable and current maturities $ 11.8 $ 55.0Long-term debt 957.4 853.8Total debt 969.3 908.8Total equity 861.6 1,219.9

Total capital $ 1,830.9 $ 2,128.7

Total debt to total capital (a) 52.9% 42.7%(a) Calculated as Total debt/Total capital.

The Company's debt as a percent of total capital increased in 2012 primarily due to decreased equity resulting from a goodwillimpairment charge recorded during the fourth quarter of 2012.

Debt CovenantsThe Company’s Credit Agreement contains covenants that stipulate a maximum debt to capital ratio of 60%, limit the proportion ofsubsidiary consolidated indebtedness to a maximum of 10% of consolidated tangible assets and specifies a minimum ratio of totalconsolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”) to consolidated interest charges of 3.0:1. TheCompany’s 5.75% and 2.7% notes include covenants that require the Company to offer to repurchase the notes at 101% of par in theevent of a change of control of the Company or disposition of substantially all of the Company’s assets in combination with adowngrade in the Company’s credit rating to non-investment grade. At December 31, 2012, the Company was in compliance with thesecovenants with a debt to capital ratio (as defined by the covenants) of 54.2% and a ratio of consolidated EBITDA to consolidatedinterest charges of 9.7:1. The proportion of subsidiary consolidated indebtedness to consolidated tangible assets was less than 2% atDecember 31, 2012. Based on balances at December 31, 2012, the Company could increase borrowings by approximately $271 millionand still be in compliance with its debt covenants. Alternatively, keeping all other factors constant, the Company’s equity could

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decrease by approximately $181 million and the Company would still be within its debt covenants. The Company expects to continueto be in compliance with these debt covenants for at least the next twelve months.

Cash and Value-Based ManagementThe Company has various cash management systems throughout the world that centralize cash in various bank accounts where it iseconomically justifiable and legally permissible to do so. These centralized cash balances are then redeployed to other operations toreduce short-term borrowings and to finance working capital needs or capital expenditures. Due to the transitory nature of cashbalances, they are normally invested in bank deposits that can be withdrawn at will or in very liquid short-term

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bank time deposits and government obligations. The Company's policy is to use the largest banks in the various countries in which theCompany operates. The Company monitors the creditworthiness of its banks and when appropriate will adjust its banking operations toreduce or eliminate exposure to less credit worthy banks.

At December 31, 2012, the Company's consolidated cash and cash equivalents included $91.8 million held by foreign subsidiaries. AtDecember 31, 2012, less than 10% of the Company's consolidated cash and cash equivalents had regulatory restrictions that wouldpreclude the transfer of funds with and among subsidiaries. The cash and cash equivalents held by foreign subsidiaries also included$27.1 million held in consolidated joint ventures. The joint venture agreements may require joint venture partner approval to transferfunds with and among subsidiaries. While the Company's remaining foreign cash and cash equivalents can be transferred with andamong subsidiaries, the majority of these foreign cash balances will be used to support the on-going working capital needs andcontinued growth of the Company's foreign operations.

The Company plans to continue its strategy of targeted, prudent investing for strategic purposes for the foreseeable future and to makemore efficient use of existing investments. The long-term goal of this strategy is to create stockholder value by improving theCompany's EVA. Under this program, the Company evaluates strategic investments based upon the investment's economic profit. EVAequals after-tax operating profits less a charge for the use of the capital employed to create those profits. Therefore, value is createdwhen a project or initiative produces a return above the risk-adjusted local country cost of capital. In 2012, EVA decreased slightlycompared with 2011.

The Company currently expects to continue paying dividends to stockholders. In February 2013, the Company paid its251st consecutive quarterly cash dividend. In January 2013, the Company also declared its 252nd consecutive quarterly cash dividend,payable in May 2013.

The Company's financial position and debt capacity should enable it to meet current and future requirements. As additional resourcesare needed, the Company should be able to obtain funds readily and at competitive costs. The Company is well-positioned financiallyand intends to continue investing in high-return, organic growth projects and prudent, strategic alliances and ventures; reduce debt; andpay cash dividends as a means of enhancing stockholder value.

Application of Critical Accounting Policies

The Company's discussion and analysis of its financial condition and results of operations are based upon the consolidated financialstatements, which have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP").The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts ofassets, liabilities, revenues and expenses and related disclosure of contingent liabilities. On an ongoing basis, the Company evaluates theestimates, including those related to defined benefit pension benefits, notes and accounts receivable, goodwill, long-lived assetimpairment, inventories, legal and other contingencies, and income taxes. The impact of changes in these estimates, as necessary, isreflected in the respective segment's results of operations in the period of the change. The Company bases estimates on historicalexperience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basisfor making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual resultsmay differ from these estimates under different outcomes, assumptions or conditions.

The Company believes the following critical accounting policies are affected by the Company's more significant judgments andestimates used in the preparation of its consolidated financial statements. Management has discussed the development and selection ofthe critical accounting estimates described below with the Audit Committee of the Board of Directors (the "Board") and they havereviewed the Company's disclosures relating to these estimates in this Management's Discussion and Analysis of Financial Conditionand Results of Operations. These items should be read in conjunction with Note 1, Summary of Significant Accounting Policies, to theConsolidated Financial Statements under Part II, Item 8, "Financial Statements and Supplementary Data."

Defined Benefit Pension BenefitsThe Company has defined benefit pension plans in several countries. The largest of these plans are in the United Kingdom and theUnited States. The Company's funding policy for these plans is to contribute amounts sufficient to meet the minimum funding pursuantto U.K. and U.S. statutory requirements, plus any additional amounts that the Company may determine to be appropriate.

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The Company continues to evaluate alternative strategies to further reduce overall net periodic pension cost including the considerationof converting the remaining few defined benefit plans to defined contribution plans; the ongoing evaluation of investment fundmanagers' performance; the balancing of plan assets and liabilities; the risk assessment of multiemployer pension plans; the possiblemerger of certain plans; the consideration of incremental cash contributions to certain plans; and other changes that could reduce futurenet periodic pension cost volatility and minimize risk.

Changes in the discount rate assumption and the actual performance of plan assets compared with the expected long-term rate of returnon plan assets are the primary drivers in the change in funded status of the Company's defined benefit pension plans. These factors arecomponents of actuarial loss (gain) and impact the amount recognized in Other comprehensive income (loss), as such actuarial changesare not reflected directly in the Statement of Operations, but amortized over time in accordance with U.S. GAAP. The tables belowshow the underfunded status of the Company's combined defined benefit pension plans, global weighted average discount rate at yearend, the comparison of actual and expected return on plan assets and Other comprehensive income (loss) attributable to pension liabilityadjustments. The change in underfunded status from December 31, 2011 to December 31, 2012, and also from December 31, 2009 toDecember 31, 2010, reflects moderate changes in underfunded status as actual asset returns in excess of expected returns helpedcounteract the impact of decreases in the discount rate. The change in underfunded status from December 31, 2010 to December 31,2011 reflects a decrease in discount rate coupled with actual returns less than expected returns as market conditions negatively impactedboth U.S. and international plans.

(in millions)December 31

2012December 31

2011December 31

2010December 31

2009

Underfunded status $ 384.1 $ 343.6 $ 218.6 $ 239.2Global weighted average discount rate 4.2% 4.7% 5.4% 5.8%

For the Years Ended December 31

(in millions) 2012 2011 2010

Actual return on plan assets $ 85.6 $ 26.0 $ 95.1Expected return on plan assets 60.7 69.2 62.7Other comprehensive income (loss) attributable to pension liabilityadjustments, pre-tax (61.2) (143.0) 32.6

The Company made cash contributions to its defined benefit pension plans of $36.0 million, $32.4 million and $19.2 million during2012, 2011 and 2010, respectively. The increase from 2010 to 2011 is principally attributable to increased minimum fundingrequirements in the Company's U.K. plan. Additionally, the Company expects to make a minimum of $34.1 million in cashcontributions to its defined benefit pension plans during 2013.

Critical Estimate—Defined Benefit Pension BenefitsAccounting for defined benefit pension plans requires the use of actuarial assumptions. The principal assumptions used include thediscount rate and the expected long-term rate of return on plan assets. Each assumption is reviewed annually and representsmanagement's best estimate at that time. The assumptions are selected to represent the average expected experience over time and maydiffer in any one year from actual experience due to changes in capital markets and the overall economy. These differences will impactthe amount of unfunded benefit obligation and the expense recognized.

The discount rates used in calculating the Company's projected benefit obligations at the December 31, 2012 measurement date for theU.K. and U.S. defined benefit pension plans were 4.3% and 3.8%, respectively, and the global weighted-average discount rate was4.2%. The discount rates selected represent the average yield on high-quality corporate bonds at the measurement dates. Annual netperiodic pension cost is determined using the discount rates at the beginning of the year. The discount rates for 2012 expense were 4.7%for the U.K. plan, 4.4% for the U.S. plans and 4.7% for the global weighted-average of plans. Net periodic pension cost and theprojected benefit obligation generally increase as the selected discount rate decreases.

The expected long-term rate of return on plan assets is determined by evaluating the asset return expectations with the Company'sadvisors as well as actual, long-term, historical results of asset returns for the pension plans. Generally the net periodic pension costincreases as the expected long-term rate of return on assets decreases. For 2012, the global weighted-average expected long-term rate of

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return on asset assumption was 6.9%. For 2013, the expected global long-term rate of return on assets is 6.8%. This rate was determinedbased on a model of expected asset returns for an actively managed portfolio.

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Changes in defined benefit net periodic pension cost may occur in the future due to changes in actuarial assumptions and due to changesin returns on plan assets resulting from financial market conditions. Holding all other assumptions constant, using December 31, 2012plan data, a one-half percent increase or decrease in the discount rate and the expected long-term rate of return on plan assets wouldincrease or decrease annual 2012 pre-tax defined benefit net periodic pension cost as follows:

Approximate Changes in Pre-tax Defined Benefit Net Periodic Pension Cost

U.S. Plans U.K. Plan

Discount rateOne-half percent increase Decrease of $0.1 million Decrease of $1.7 millionOne-half percent decrease Increase of $0.1 million Increase of $1.8 millionExpected long-term rate of return on plan assetsOne-half percent increase Decrease of $1.0 million Decrease of $3.3 millionOne-half percent decrease Increase of $1.0 million Increase of $3.3 million

Should circumstances that affect these estimates change, increases or decreases to the net pension obligations may be required.Additionally, certain events could result in the pension obligation changing at a time other than the annual measurement date. Thiswould occur when a benefit plan is amended or when plan curtailments or settlements occur. See Note 9, Employee Benefit Plans, to theConsolidated Financial Statements under Part II, Item 8, "Financial Statements and Supplementary Data," for additional disclosuresrelated to these items.

Notes and Accounts ReceivableNotes and accounts receivable are stated at their net realizable value through the use of an allowance for doubtful accounts. Theallowance is maintained for estimated losses resulting from the inability or unwillingness of customers to make required payments. TheCompany has policies and procedures in place requiring customers to be evaluated for creditworthiness prior to the execution of newservice contracts or shipments of products. These reviews are structured to minimize the Company's risk related to realizability of itsreceivables. Despite these policies and procedures, the Company may at times still experience collection problems and potential baddebts due to economic conditions within certain industries (e.g., construction and steel industries), countries or regions in which theCompany operates. At December 31, 2012 and 2011, trade accounts receivable of $600.3 million and $618.5 million, respectively, werenet of reserves of $17.3 million and $17.8 million, respectively.

Critical Estimate—Notes and Accounts ReceivableA considerable amount of judgment is required to assess the realizability of receivables, including the current creditworthiness of eachcustomer, related aging of past due balances and the facts and circumstances surrounding any non-payment. The Company's provisionsfor bad debts during 2012, 2011 and 2010 were $11.3 million, $7.9 million and $10.0 million, respectively.

On a monthly basis, customer accounts are analyzed for collectability. Reserves are established based upon a specific-identificationmethod as well as historical collection experience, as appropriate. The Company also evaluates specific accounts when it becomesaware of a situation in which a customer may not be able to meet its financial obligations due to a deterioration in its financial condition,credit ratings bankruptcy or receivership. The reserve requirements are based on the facts available to the Company and are reevaluatedand adjusted as additional information is received. Reserves are also determined by using percentages (based upon experience) appliedto certain aged receivable categories. Specific issues are discussed with corporate management, and any significant changes in reserveamounts or the write-off of balances must be approved by a specifically designated corporate officer. All approved items are monitoredto ensure they are recorded in the proper period. Additionally, any significant changes in reserve balances are reviewed to ensure theproper corporate approval has occurred.

If the financial condition of the Company's customers were to deteriorate, resulting in their inability to make payments, additionalallowances may be required. Conversely, an improvement in a customer's ability to make payments could result in a decrease of theallowance for doubtful accounts. Changes in the allowance for doubtful accounts related to both of these situations would be recordedthrough income in the period the change was determined. It should be noted that the Company has less than $10 million of receivablesdue from certain customers that are in receivership. Although the Company believes these amounts are collectible, should there be anadverse change in the Company's view on collectability there could be a charge against income in future periods.

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The Company has not materially changed its methodology for calculating allowances for doubtful accounts for the years presented. SeeNote 4, Accounts Receivable and Inventories, to the Consolidated Financial Statements under Part II, Item 8, "Financial Statements andSupplementary Data," for additional disclosures related to these items.

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GoodwillThe Company's goodwill balances were $429.2 million and $680.9 million at December 31, 2012 and 2011, respectively. The Companyperforms the annual goodwill impairment test as of October 1. The Company has seven reporting units (only three of which havegoodwill associated with them as of December 31, 2012), of which two are included in the Harsco Metals & Minerals Segment. Theremaining reporting unit is the Harsco Rail Segment. Almost all of the Company's goodwill is allocated to the Harsco Metals businessunit which is included in the Harsco Metals & Minerals Segment.

Critical Estimate—GoodwillIn accordance with U.S. GAAP, goodwill is not amortized and is tested for impairment at least annually or more frequently if indicatorsof impairment exist or if a decision is made to dispose of a business. Goodwill is allocated among and evaluated for impairment at thereporting unit level, which is defined as an operating segment or one level below an operating segment for which discrete financialinformation is available. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Suchindicators may include declining cash flows or operating losses at the reporting unit level, a significant adverse change in legal factorsor in the business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, or a more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of, amongothers.

The evaluation of potential goodwill impairment involves comparing the current fair value of each reporting unit to its net book value,including goodwill. The Company uses a discounted cash flow model (“DCF model”) to estimate the current fair value of reportingunits, as management believes forecasted operating cash flows are the best indicator of current fair value. A number of significantassumptions and estimates are involved in the preparation of DCF models including future revenues and operating margin growth, theweighted-average cost of capital (“WACC”), tax rates, capital spending, pension funding, the impact of business initiatives, and workingcapital projections. These assumptions and estimates may vary significantly between reporting units. DCF models are based onapproved operating plans for the early years and historical relationships and projections for later years. WACC rates are derived frominternal and external factors including, but not limited to, the average market price of the Company's stock, shares outstanding, bookvalue of the Company's debt, the long-term risk free interest rate, and both market and size-specific risk premiums. Due to the manyvariables noted above and the relative size of the Company's goodwill, differences in assumptions may have a material impact on theresults of the Company's annual goodwill impairment testing. If the net book value of a reporting unit were to exceed its current fairvalue, the second step of the goodwill impairment test would be required to determine if an impairment existed and the amount ofgoodwill impairment to record, if any. The second step of the goodwill impairment test compares the net book value of a reporting unit'sgoodwill with the implied fair value of that goodwill. The implied fair value of goodwill represents the excess of fair value of thereporting unit over the fair value amounts assigned to all of the assets and liabilities of the reporting unit if it were to be acquired in abusiness combination and the current fair value of the reporting unit represented the purchase price. The second step of the goodwillimpairment test requires the utilization of valuation experts.

For the Company's 2012 annual goodwill impairment test, the average annual revenue growth rates over the duration of the DCF modelsranged from 1.0% to 3.6%. The average annual cash flow growth rates over the duration of the DCF models ranged from 2.1% to12.4%. The WACCs used in the 2012 annual goodwill impairment test ranged from 9.25% to 10.5%.

The first step of the 2012 annual goodwill impairment test indicated that the net book value of the Harsco Infrastructure reporting unitexceeded its current fair value, requiring the Company to perform the second step of the goodwill impairment test to measure theamount of impairment loss, if any. In performing the second step of the goodwill impairment test, the Company compared the impliedfair value of goodwill for the Harsco Infrastructure reporting unit to its carrying value. This analysis resulted in a non-cash, goodwillimpairment charge of $265.0 million, which was recognized during the fourth quarter of 2012. This charge had no impact on theCompany's cash flows or compliance with debt covenants. The facts and circumstances leading to the goodwill impairment of theHarsco Infrastructure reporting unit primarily relate to a prolonged downturn in the European markets versus what was expected earlierin 2012 and its impact on the timing for near-term cash flows. The performance of the Company's 2012 annual goodwill impairment testdid not result in any impairment for the Company's remaining reporting units.

As noted above, there is no remaining goodwill associated with the Harsco Infrastructure Segment as of December 31, 2012. Had thecurrent fair value of the Company's remaining reporting units been hypothetically lowered by 10% as of October 1, 2012, the currentfair value of the reporting units would have still exceeded their net book value. Additionally, had the WACC for each of the Company'sremaining reporting units been increased by 50 basis points as of October 1, 2012, the current fair value for the Company's remainingreporting units would have still exceeded their net book value.

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It is important to note that fair values that could be realized in an actual transaction could differ materially from those used to evaluatethe impairment of goodwill. The Company has not materially changed its methodology for goodwill impairment testing for the yearspresented. See Note 1, Summary of Significant Accounting Policies and Note 6, Goodwill and Other Intangible Assets, to theConsolidated Financial Statements under Part II, Item 8, “Financial Statements and Supplementary Data,” for additional disclosurerelated to these items.

Long-lived Asset ImpairmentLong-lived assets are reviewed for impairment when events and circumstances indicate that the book value of an asset may be impaired.The amount charged against pre-tax income from continuing operations related to impaired long-lived assets was $7.2 million in 2012.There were no amounts charged against pre-tax income from continuing operations related to impaired long-lived assets for 2011. Theamount charged against pre-tax income from continuing operations related to impaired long-lived assets was $10.0 million in 2010.

Critical Estimate—Asset ImpairmentThe determination of a long-lived asset impairment involves significant judgments based upon short-term and long-term projections offuture asset performance. If the undiscounted cash flows associated with an asset do not exceed the asset's book value, impairment lossestimates would be based upon the difference between the book value and fair value of the asset. The fair value is generally based uponthe Company's estimate of the amount that the assets could be bought or sold for in a transaction between willing parties. If quotedmarket prices for the asset or similar assets are unavailable, the fair value estimate is generally calculated using a DCF model. Shouldcircumstances change that affect these estimates, additional impairment charges may be required and would be recorded through incomein the period the change was determined.

The Company has not materially changed its methodology for calculating long-lived asset impairments for the years presented.U.S. GAAP requires consideration of all valuation techniques for which market participant inputs can be obtained without undue costand effort. The use of a DCF model continues to be an appropriate method for determining fair value, however, methodologies such asquoted market prices must also be evaluated. See Note 16, Other Expenses, to the Consolidated Financial Statements under Part II,Item 8, "Financial Statements and Supplementary Data," for additional disclosure related to these items.

InventoriesInventories are stated at the lower of cost or market. Inventory balances are adjusted for estimated obsolete or unmarketable inventoryequal to the difference between the cost of inventory and its estimated market value. At December 31, 2012 and 2011, inventories of$236.5 million and $241.9 million, respectively, are net of lower of cost or market reserves and obsolescence reserves of $8.5 millionand $7.5 million, respectively.

Critical Estimate—InventoriesIn assessing the ultimate realization of inventory balances, the Company is required to make judgments as to future demandrequirements and compare these with the current or committed inventory levels. If actual market conditions are determined to be lessfavorable than those projected by management, additional inventory write-downs may be required and would be recorded throughincome in the period the determination is made. Additionally, the Company records reserves to adjust a substantial portion of its U.S.inventory balances to the last-in, first-out ("LIFO") method of inventory valuation. In adjusting these reserves throughout the year, theCompany estimates its year-end inventory costs and quantities. At December 31 of each year, the reserves are adjusted to reflect actualyear-end inventory costs and quantities. During periods of inflation, the LIFO expense usually increases and during periods of deflationit decreases. These year-end adjustments resulted in pre-tax income of $0.5 million in 2012, pre-tax expense of $0.6 million in 2011 andpre-tax income of $0.2 million in 2010.

The Company has not materially changed its methodology for calculating inventory reserves for the years presented. See Note 4,Accounts Receivable and Inventories, to the Consolidated Financial Statements under Part II, Item 8, "Financial Statements andSupplementary Data," for additional disclosures related to these items.

Insurance ReservesThe Company retains a significant portion of the risk for U.S. workers' compensation, U.K. employers' liability, automobile, general andproduct liability losses. At December 31, 2012 and 2011, the Company recorded liabilities of $82.7 million and $85.9 million,respectively, related to both asserted as well as unasserted insurance claims. At December 31, 2012 and 2011, $3.6 million and $2.6million, respectively, were included in insurance liabilities related to claims covered by insurance carriers for which a correspondingreceivable has been recorded.

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Critical Estimate—Insurance ReservesInsurance reserves have been recorded based upon actuarial calculations that reflect the undiscounted estimated liabilities for ultimatelosses including claims incurred but not reported. Inherent in these estimates are assumptions that are based on the Company's history ofclaims and losses, a detailed analysis of existing claims with respect to potential value, and current legal and legislative trends. If actualclaims differ from those projected by management, changes (either increases or decreases) to insurance reserves may be required andwould be recorded through income in the period the change was determined. During 2012, 2011 and 2010, the Company recorded aretrospective insurance reserve adjustment that decreased pre-tax insurance expense from continuing operations for self-insuredprograms by $4.6 million, $2.7 million and $2.5 million, respectively. The Company has programs in place to improve claimsexperience, such as disciplined claim and insurance litigation management and a focused approach to workplace safety.

The Company has not materially changed its methodology for calculating insurance reserves for the years presented. There are currentlyno known trends, demands, commitments, events or uncertainties that are reasonably likely to occur that would materially affect themethodology or assumptions described above.

Legal and Other ContingenciesReserves for contingent liabilities are recorded when it is probable that an asset has been impaired or a liability has been incurred andthe loss can be reasonably estimated. Adjustments to estimated amounts are recorded as necessary based on new information or theoccurrence of new events or the resolution of an uncertainty. Such adjustments are recorded in the period that the required change isidentified.

Critical Estimate—Legal and Other ContingenciesOn a quarterly basis, recorded contingent liabilities are analyzed to determine if any adjustments are required. Additionally, functionaldepartment heads within each business are consulted monthly to ensure all issues with a potential financial accounting impact, includingpossible reserves for contingent liabilities, have been properly identified, addressed or disposed of. Specific issues are discussed withcorporate management and any significant changes in reserve amounts or the adjustment or write-off of previously recorded balancesmust be approved by a specifically designated corporate officer. If necessary, outside legal counsel, other third parties or internal expertsare consulted to assess the likelihood and range of outcomes for a particular issue. Approved changes in reserve amounts are monitoredto ensure they are recorded in the proper period. Additionally, any significant changes in reported business-unit reserve balances arereviewed to ensure the proper corporate approval has occurred. On a quarterly basis, the Company's business units submit a reservelisting to the corporate headquarters which is reviewed with corporate management and the Board during scheduled meetings. Allsignificant reserve balances are discussed with a designated corporate officer to assess their validity, accuracy and completeness.Anticipated changes in reserves are identified for further consideration prior to the end of a reporting period. Any new issues that mayrequire a reserve are also identified and discussed to ensure proper disposition.

The Company has not materially changed its methodology for calculating legal and other contingencies for the years presented. Thereare currently no known trends, demands, commitments, events or uncertainties that are reasonably likely to occur that would materiallyaffect the methodology or assumptions described above. See Note 11, Commitments and Contingencies, to the Consolidated FinancialStatements under Part II, Item 8, "Financial Statements and Supplementary Data," for additional disclosure on contingencies.

Income TaxesThe Company's income tax expense, deferred tax assets and liabilities and reserves for uncertain tax positions reflect management's bestestimate of taxes to be paid. The Company is subject to various federal, state and local income taxes in the taxing jurisdictions where theCompany operates. In determining consolidated income tax expense, the Company makes its best estimate of the annual effectiveincome tax rate at the end of each quarterly period and applies that rate to year-to-date income before income taxes to arrive at the year-to-date income tax provision (exclusive of loss jurisdictions for which no tax benefit is realizable with any discrete tax items recordedseparately). At December 31, 2012, 2011 and 2010, the Company's annual effective income tax rate on income from continuingoperations was (16.1)%, 119.6% and 20.9%, respectively.

Critical Estimate—Income TaxesThe annual effective income tax rates are estimated by giving recognition to currently enacted tax rates, tax holidays, tax credits, capitallosses, and tax deductions, as well as certain exempt income and non-deductible expenses for all of the jurisdictions where the Companyoperates. The income tax provision for a quarterly period incorporates any change in the year-to-date provision from the previousquarterly periods. The Company has not materially changed its methodology for calculating income tax expense for the years presentedor for quarterly periods.

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The Company records deferred tax assets to the extent the Company believes these assets will more likely than not be realized. Inmaking such determinations, the Company considers all available positive and negative evidence, including future reversals of existingdeferred tax liabilities, projected future taxable income, feasible and prudent tax planning strategies and recent financial operatingresults. In the event the Company was to determine that it would be able to realize deferred tax assets in the future in excess of their netrecorded amount, an adjustment to the valuation allowance would be made that would reduce the provision for income taxes.

The valuation allowances of $126.5 million and $99.6 million at December 31, 2012 and 2011, respectively, related principally todeferred tax assets for U.K. pension liabilities, NOLs, currency translation and foreign investment tax credits that are uncertain as torealizability. Due to the negative financial performance of the Company's U.K. operations and restructuring charges, the Companyrecorded a non-cash tax expense of approximately $6.1 million and $35.4 million in 2012 and 2011 , respectively, to recognize avaluation allowance to fully offset the U.K. operations' net deferred tax assets primarily related to U.K. pension liabilities and lossesfrom operations, as the Company determined it is more likely than not that these assets will not be realized. Additionally in 2011, theCompany recorded an additional valuation allowance of approximately $22.9 million through Accumulated other comprehensive lossrelated to U.K. pension liability adjustments that were recorded through Accumulated other comprehensive loss during 2011. Excludingthe valuation allowance activity related to the Company's U.K operations, the remaining increase in valuation allowances resultedprimarily from restructuring charges that were incurred in certain jurisdictions which generated losses, that the Company determined itis more likely than not that these assets will not be realized.

A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained uponexamination, including resolutions of any related appeals or litigation processes, based on its technical merits. The unrecognized taxbenefits at December 31, 2012 and 2011 were $32.9 million and $43.1 million, respectively, including accrued interest and penalties.The unrecognized tax benefit may decrease as a result of the lapse of statute of limitations or as a result of final settlement andresolution of outstanding tax matters in various state and international jurisdictions.

The Company has not provided U.S. income taxes on certain non-U.S. subsidiaries' undistributed earnings as such amounts arepermanently reinvested outside the United States. The Company evaluates future financial projections for its most significantsubsidiaries, the need to reinvest earnings locally and the overall cash requirements of the Company. Based upon this evaluation, theCompany determined that certain undistributed earnings from non-U.S. subsidiaries are indefinitely reinvested. The Company believesthat it can generate sufficient cash flows to avoid the one-time tax costs associated with repatriation of undistributed earnings to the U.S.from prior periods. At December 31, 2012 and 2011, such earnings were approximately $882 million and $834 million, respectively. Ifthese earnings were repatriated at December 31, 2012, the one-time tax cost associated with the repatriation would be approximately$166 million.

See Note 10, Income Taxes, to the Consolidated Financial Statements under Part II, Item 8, "Financial Statements and SupplementaryData," for additional disclosures related to these items.

Research and Development

Internal funding for research and development was as follows:

Research and Development Expenses

(In millions) 2012 2011 2010

Harsco Metals & Minerals Segment $ 1.7 $ 1.8 $ 1.4Harsco Infrastructure Segment 3.1 2.7 2.1Harsco Rail Segment 3.3 0.9 0.6Harsco Industrial Segment 0.9 0.7 0.2

Consolidated Totals $ 9.1 $ 6.0 $ 4.3

The amounts shown exclude technology development and engineering costs classified in cost of services sold; cost of products sold; orselling, general and administrative expenses.

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Recently Adopted and Recently Issued Accounting Standards

See Note 2, Recently Adopted and Recently Issued Accounting Standards, to the Consolidated Financial Statements under Part II,Item 8, "Financial Statements and Supplementary Data," for disclosures on recently adopted and recently issued accounting standardsand their effect on the Company.

Dividend Action

The Company has paid dividends each year since 1939. The Company paid four quarterly cash dividends of $0.205 per share in 2012,for an annual rate of $0.82 per share. The Board normally reviews the dividend rate periodically during the year and annually at itsfourth quarter meeting. There are no significant restrictions on the payment of dividends.

The February 15, 2013 dividend payment of $0.205 per share marked the 251st consecutive quarterly dividend. The Company isphilosophically committed to maintaining or increasing the dividend at a sustainable level.

On January 28, 2013, the Company's Board of Directors declared a quarterly cash dividend of $0.205 per share, payable May 15, 2013to shareholders of record at the close of business on April 15, 2013.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk.

See Part I, Item 1A, "Risk Factors," for quantitative and qualitative disclosures about market risk.

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Item 8. Financial Statements and Supplementary Data.

Index to Consolidated Financial Statements and Supplementary Data

Page

Consolidated Financial Statements of Harsco Corporation:Management's Report on Internal Control Over Financial Reporting 46Report of Independent Registered Public Accounting Firm 47Consolidated Balance Sheets 48Consolidated Statements of Operations 49Consolidated Statements of Comprehensive Income (Loss) 50Consolidated Statements of Cash Flows 51Consolidated Statements of Changes in Equity 52Notes to Consolidated Financial Statements 54

Supplementary Data (Unaudited):Two-Year Summary of Quarterly Results 95Common Stock Price and Dividend Information 96

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Management's Report on Internal Control Over Financial Reporting

Management of Harsco Corporation, together with its consolidated subsidiaries (the "Company"), is responsible for establishing andmaintaining adequate internal control over financial reporting, as defined in Securities Exchange Act Rule 13a-15(f) or 15d-15(e). TheCompany's internal control over financial reporting is a process designed under the supervision of the Company's principal executiveand principal financial officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of theCompany's consolidated financial statements for external reporting purposes in accordance with accounting principles generallyaccepted in the United States of America.

The Company's internal control over financial reporting includes policies and procedures that:

• Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositionsof assets of the Company;

• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financialstatements in accordance with accounting principles generally accepted in the United States of America, and thatreceipts and expenditures of the Company are being made only in accordance with authorizations of management andthe directors of the Company; and

• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition ofthe Company's assets that could have a material effect on the Company's consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projectionsof any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes inconditions, or that the degree of compliance with the policies and procedures may deteriorate.

Management has assessed the effectiveness of its internal control over financial reporting at December 31, 2012 based on the frameworkestablished in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the TreadwayCommission (COSO). Based on this assessment, management has determined that the Company's internal control over financialreporting was effective at December 31, 2012.

The effectiveness of the Company's internal control over financial reporting at December 31, 2012 has been audited byPricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report appearing in this AnnualReport on Form 10-K, which expresses an unqualified opinion on the effectiveness of the Company's internal control over financialreporting at December 31, 2012.

/s/ PATRICK K. DECKER /s/ BARRY E. MALAMUDPatrick K. DeckerPresident, Chief Executive Officer and Director

Barry E. MalamudVice President, Corporate Controller and Interim Chief FinancialOfficer

February 26, 2013 February 26, 2013

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Report of Independent Registered Public Accounting Firm

To The Stockholders of the Corporation:

In our opinion, the consolidated financial statements listed in the accompanying index present fairly, in all material respects, thefinancial position of Harsco Corporation and its subsidiaries at December 31, 2012 and December 31, 2011 and the results of theiroperations and their cash flows for each of the three years in the period ended December 31, 2012 in conformity with accountingprinciples generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in theaccompanying index appearing under Item 15(a)(2) presents fairly, in all material respects, the information set forth therein when readin conjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects,effective internal control over financial reporting as of December 31, 2012, based on criteria established in Internal Control - IntegratedFramework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's managementis responsible for these financial statements and financial statement schedule, for maintaining effective internal control over financialreporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanyingManagement's Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on these financialstatements, on the financial statement schedule, and on the Company's internal control over financial reporting based on our integratedaudits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements arefree of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Ouraudits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financialstatement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal controlover financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considerednecessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accountingprinciples. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to themaintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of thecompany; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effecton the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projectionsof any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes inconditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PricewaterhouseCoopers LLPPhiladelphia, PennsylvaniaFebruary 26, 2013

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HARSCO CORPORATIONCONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)December 31

2012December 31

2011

ASSETS

Current assets:

Cash and cash equivalents $ 95,250 $ 121,184

Trade accounts receivable, net 600,264 618,475

Other receivables 39,836 44,431

Inventories 236,512 241,934

Other current assets 94,581 133,407

Total current assets 1,066,443 1,159,431

Property, plant and equipment, net 1,266,225 1,274,484

Goodwill 429,198 680,901

Intangible assets, net 77,726 93,501

Other assets 136,377 130,560

Total assets $ 2,975,969 $ 3,338,877

LIABILITIES

Current liabilities:

Short-term borrowings $ 8,560 $ 51,414

Current maturities of long-term debt 3,278 3,558

Accounts payable 221,479 252,329

Accrued compensation 94,398 92,603

Income taxes payable 10,109 8,409

Dividends payable 16,520 16,498

Insurance liabilities 19,434 25,075

Advances on contracts 47,696 111,429

Other current liabilities 216,101 220,953

Total current liabilities 637,575 782,268

Long-term debt 957,428 853,800

Deferred income taxes 18,880 27,430

Insurance liabilities 63,248 60,864

Retirement plan liabilities 385,062 343,842

Other liabilities 52,152 50,755

Total liabilities 2,114,345 2,118,959

COMMITMENTS AND CONTINGENCIES

HARSCO CORPORATION STOCKHOLDERS' EQUITY

Preferred stock, Series A junior participating cumulative preferred stock — —Common stock, par value $1.25 (issued 112,063,938 and 111,931,267 shares at December 31, 2012 and2011, respectively) 140,080 139,914

Additional paid-in capital 152,645 149,066

Accumulated other comprehensive loss (411,168) (364,191)

Retained earnings 1,675,490 1,996,234

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Treasury stock, at cost (31,479,310 and 31,454,097 shares at December 31, 2012 and 2011, respectively) (745,205) (744,644)

Total Harsco Corporation stockholders' equity 811,842 1,176,379

Noncontrolling interests 49,782 43,539

Total equity 861,624 1,219,918

Total liabilities and equity $ 2,975,969 $ 3,338,877

See accompanying notes to consolidated financial statements.

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HARSCO CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS

Years ended December 31

(In thousands, except per share amounts) 2012 2011 2010

Revenues from continuing operations:

Service revenues $ 2,340,996 $ 2,700,664 $ 2,511,505

Product revenues 705,022 602,076 527,173

Total revenues 3,046,018 3,302,740 3,038,678

Costs and expenses from continuing operations:

Cost of services sold 1,861,732 2,162,948 1,994,637

Cost of products sold 487,784 407,680 342,242

Selling, general and administrative expenses 503,339 535,679 532,624

Research and development expenses 9,139 6,044 4,271

Goodwill impairment charge 265,038 — —

Other expenses 93,776 102,740 86,473

Total costs and expenses 3,220,808 3,215,091 2,960,247

Operating income (loss) from continuing operations (174,790) 87,649 78,431

Interest income 3,676 2,751 2,668

Interest expense (47,381) (48,735) (60,623)Income (loss) from continuing operations before income taxes and equityincome (218,495) 41,665 20,476

Income tax expense (35,251) (49,848) (4,276)

Equity in income of unconsolidated entities, net 564 690 390

Income (loss) from continuing operations (253,182) (7,493) 16,590

Discontinued operations:

Loss on disposal of discontinued business (1,843) (3,306) (7,249)

Income tax benefit related to discontinued business 924 1,243 3,118

Loss from discontinued operations (919) (2,063) (4,131)

Net income (loss) (254,101) (9,556) 12,459

Less: Net income attributable to noncontrolling interests (511) (1,954) (5,705)

Net income (loss) attributable to Harsco Corporation $ (254,612) $ (11,510) $ 6,754

Amounts attributable to Harsco Corporation common stockholders:

Income (loss) from continuing operations, net of tax $ (253,693) $ (9,447) $ 10,885

Loss from discontinued operations, net of tax (919) (2,063) (4,131)

Net income (loss) attributable to Harsco Corporation common stockholders $ (254,612) $ (11,510) $ 6,754

Weighted average shares of common stock outstanding 80,632 80,736 80,569Basic earnings (loss) per share attributable to Harsco Corporation commonstockholders:

Continuing operations $ (3.15) $ (0.12) $ 0.14

Discontinued operations (0.01) (0.03) (0.05)Basic earnings (loss) per share attributable to Harsco Corporation commonstockholders $ (3.16) $ (0.14) (a) $ 0.08 (a)

Diluted weighted average shares of common stock outstanding 80,632 80,736 80,761

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Diluted earnings (loss) per share attributable to Harsco Corporation commonstockholders:

Continuing operations $ (3.15) $ (0.12) $ 0.13

Discontinued operations (0.01) (0.03) (0.05)Diluted earnings (loss) per share attributable to Harsco Corporation commonstockholders $ (3.16) $ (0.14) (a) $ 0.08

(a) Does not total due to rounding.

See accompanying notes to consolidated financial statements.

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HARSCO CORPORATIONCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Years ended December 31

(In thousands) 2012 2011 2010

Net income (loss) $ (254,101) $ (9,556) $ 12,459Other comprehensive income (loss):

Foreign currency translation adjustments, net of deferred income taxes 11,434 (60,575) (6,633)Net gains (losses) on cash flow hedging instruments, net of deferred incometaxes of $567, $(2,126) and $355 in 2012, 2011 and 2010, respectively (4,333) 5,991 (712)Reclassification adjustment for (gain) loss on cash flow hedginginstruments, net of deferred income taxes $25 and $(8) in 2011 and 2010,respectively — (58) 12Pension liability adjustments, net of deferred income taxes of $7,572,$19,143 and $(9,727) in 2012, 2011 and 2010, respectively (53,645) (123,827) 22,872Unrealized gain (loss) on marketable securities, net of deferred incometaxes of $(3), $7 and $(8) in 2012, 2011 and 2010, respectively 6 (11) 12Reclassification adjustment for gain on marketable securities, net ofdeferred income taxes of $1 in 2010 — — (2)

Total other comprehensive income (loss) (46,538) (178,480) 15,549Total comprehensive income (loss) (300,639) (188,036) 28,008Less: Comprehensive income attributable to noncontrolling interests (950) (1,733) (5,502)

Comprehensive income (loss) attributable to Harsco Corporation $ (301,589) $ (189,769) $ 22,506

See accompanying notes to consolidated financial statements.

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HARSCO CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS

Years ended December 31

(In thousands) 2012 2011 2010

Cash flows from operating activities:Net income (loss) $ (254,101) $ (9,556) $ 12,459Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation 251,905 276,021 279,234Amortization 20,212 34,420 36,005Deferred income tax expense (benefit) (10,708) 20,826 (26,617)Equity in income of unconsolidated entities, net (564) (690) (390)Dividends or distributions from unconsolidated entities 308 226 176Harsco Infrastructure Segment 2010 Restructuring Program non-cashadjustment — — 43,158Harsco 2011/2012 Restructuring Program non-cash adjustment 31,443 67,320 —Goodwill impairment charge 265,038 — —Other, net (27,098) (7,432) (20,629)Changes in assets and liabilities, net of acquisitions and dispositions of businesses:

Accounts receivable 22,016 (58,011) 4,395Inventories 2,365 7,976 12,599Accounts payable (37,649) (2,713) 36,529Accrued interest payable (319) (375) (2,615)Accrued compensation 517 12,554 16,305Harsco Infrastructure Segment 2010 Restructuring Program accrual (5,211) (19,629) 29,817Harsco 2011/2012 Restructuring Program accrual (7,883) 30,471 —Other assets and liabilities (51,392) (52,632) (18,999)

Net cash provided by operating activities 198,879 298,776 401,427Cash flows from investing activities:

Purchases of property, plant and equipment (265,023) (313,101) (192,348)Proceeds from sales of assets 49,779 42,653 22,663Purchase of businesses, net of cash acquired* (740) (1,938) (27,643)Other investing activities, net (3,284) 16,564 (4,695)

Net cash used by investing activities (219,268) (255,822) (202,023)Cash flows from financing activities:

Short-term borrowings, net (43,464) 21,637 (25,706)Current maturities and long-term debt:

Additions 285,850 301,515 747,213Reductions (184,372) (297,854) (821,038)

Cash dividends paid on common stock (66,068) (66,146) (65,976)Dividends paid to noncontrolling interests (2,605) (4,171) (5,850)Purchase of noncontrolling interests — — (1,159)Contributions from noncontrolling interests 8,097 8,851 698Common stock issued—options 725 2,403 997Common stock acquired for treasury — (5,788) —

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Other financing activities, net (2,709) (1) (700)Net cash used by financing activities (4,546) (39,554) (171,521)

Effect of exchange rate changes on cash (999) (6,454) 2,171Net increase (decrease) in cash and cash equivalents (25,934) (3,054) 30,054Cash and cash equivalents at beginning of period 121,184 124,238 94,184

Cash and cash equivalents at end of period $ 95,250 $ 121,184 $ 124,238

*Purchase of businesses, net of cash acquiredWorking capital, other than cash $ — $ — $ (1,918)Property, plant and equipment — (1,394) (15,600)Other noncurrent assets and liabilities, net (740) (544) (10,125)

Net cash used to acquire businesses $ (740) $ (1,938) $ (27,643)See accompanying notes to consolidated financial statements.

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HARSCO CORPORATIONCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Common Stock

(In thousands, except share and pershare amounts) Issued Treasury

AdditionalPaid-inCapital

RetainedEarnings

AccumulatedOther

ComprehensiveIncome (Loss)

NoncontrollingInterests Total

Balances, January 1, 2010 $ 139,234 $ (735,016) $ 137,746 $ 2,133,297 $ (201,684) $ 36,257 $ 1,509,834

Net income 6,754 5,705 12,459

Cash dividends declared:

Common @ $0.82 per share (66,131) (66,131)

Noncontrolling interests (5,850) (5,850)Translation adjustments, net of deferredincome taxes of $7,612 (6,430) (203) (6,633)Cash flow hedging instrument adjustments,net of deferred income taxes of $347 (700) (700)Purchase of subsidiary shares fromnoncontrolling interest (1,003) (156) (1,159)Contributions from noncontrollinginterests 698 698Pension liability adjustments, net ofdeferred income taxes of $(9,727) 22,872 22,872Marketable securities unrealized loss, netof deferred income taxes of $(7) 10 10

Stock options exercised, net 91,485 shares 144 (836) 1,446 754Vesting of restricted stock units, net 69,515shares 136 (1,254) (188) (1,306)Amortization of unearned compensation onrestricted stock units, net of forfeitures 3,297 3,297

Balances, December 31, 2010 $ 139,514 $ (737,106) $ 141,298 $ 2,073,920 $ (185,932) $ 36,451 $ 1,468,145

HARSCO CORPORATIONCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued)

Common Stock

(In thousands, except share and pershare amounts) Issued Treasury

AdditionalPaid-inCapital

RetainedEarnings

AccumulatedOther

ComprehensiveIncome (Loss)

NoncontrollingInterests Total

Balances, January 1, 2011 $ 139,514 $ (737,106) $ 141,298 $ 2,073,920 $ (185,932) $ 36,451 $ 1,468,145

Net income (loss) (11,510) 1,954 (9,556)

Cash dividends declared:

Common @ $0.82 per share (66,176) (66,176)

Noncontrolling interests (4,171) (4,171)Translation adjustments, net of deferredincome taxes of $2,504 (60,354) (221) (60,575)Cash flow hedging instrument adjustments,net of deferred income taxes of $(2,101) 5,933 5,933Contributions from noncontrollinginterests 9,526 9,526Pension liability adjustments, net ofdeferred income taxes of $19,143 (123,827) (123,827)Marketable securities unrealized gains, netof deferred income taxes of $7 (11) (11)Stock options exercised, net 157,058shares 249 (840) 2,910 2,319Vesting of restricted stock units, net 92,630shares 151 (910) 985 226

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Treasury shares repurchased, 286,577shares (5,788) (5,788)Amortization of unearned stock-basedcompensation, net of forfeitures 3,873 3,873

Balances, December 31, 2011 $ 139,914 $ (744,644) $ 149,066 $ 1,996,234 $ (364,191) $ 43,539 $ 1,219,918

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HARSCO CORPORATIONCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued)

Common Stock

(In thousands, except share and pershare amounts) Issued Treasury

AdditionalPaid-inCapital

RetainedEarnings

AccumulatedOther

ComprehensiveIncome (Loss)

NoncontrollingInterests Total

Balances, January 1, 2012 $ 139,914 $ (744,644) $ 149,066 $ 1,996,234 $ (364,191) $ 43,539 $ 1,219,918

Net income (loss) (254,612) 511 (254,101)

Cash dividends declared:

Common @ $0.82 per share (66,132) (66,132)

Noncontrolling interests (2,605) (2,605)Translation adjustments, net of deferredincome taxes of $(5,436) 10,995 439 11,434Cash flow hedging instrument adjustments,net of deferred income taxes of $567 (4,333) (4,333)Contributions from noncontrollinginterests 8,602 8,602Sale of investment in consolidatedsubsidiary (704) (704)Pension liability adjustments, net ofdeferred income taxes of $7,572 (53,645) (53,645)Marketable securities unrealized gain, netof deferred income taxes of $(3) 6 6

Stock options exercised, 38,900 shares 49 661 710Vesting of restricted stock units and otherstock grants, net 68,558 shares 117 (561) 959 515Amortization of unearned stock-basedcompensation, net of forfeitures 1,959 1,959

Balances, December 31, 2012 $ 140,080 $ (745,205) $ 152,645 $ 1,675,490 $ (411,168) $ 49,782 $ 861,624

See accompanying notes to consolidated financial statements.

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HARSCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Summary of Significant Accounting Policies

ConsolidationThe consolidated financial statements include all accounts of Harsco Corporation (the "Company"), all entities in which the Companyhas a controlling voting interest, and variable interest entities required to be consolidated in accordance with generally acceptedaccounting principles in the United States ("U.S. GAAP"). Intercompany accounts and transactions have been eliminated amongconsolidated entities.

The Company's management has evaluated all activity of the Company and concluded that subsequent events are properly reflected inthe Company's consolidated financial statements and notes as required by U.S. GAAP.

ReclassificationsCertain reclassifications have been made to prior year amounts to conform with current year classifications.

Cash and Cash EquivalentsCash and cash equivalents include cash on hand, demand deposits and short-term investments that are highly liquid in nature and havean original maturity of three months or less.

InventoriesInventories are stated at the lower of cost or market. Inventories in the United States are principally accounted for using the last-in, first-out ("LIFO") method. Other inventories are accounted for using the first-in, first-out ("FIFO") or average cost methods.

DepreciationProperty, plant and equipment is recorded at cost and depreciated over the estimated useful lives of the assets using principally thestraight-line method. When property is retired from service, the cost of the retirement is charged to the allowance for depreciation to theextent of the accumulated depreciation and the balance is charged to income. Long-lived assets to be disposed of by sale are notdepreciated while they are held for sale.

LeasesThe Company leases certain property and equipment under noncancelable lease agreements. All lease agreements are evaluated andclassified as either an operating lease or capital lease. A lease is classified as a capital lease if any of the following criteria are met:transfer of ownership to the Company by the end of the lease term; the lease contains a bargain purchase option; the lease term is equalto or greater than 75% of the asset's economic life; or the present value of future minimum lease payments is equal to or greater than90% of the asset's fair market value. Operating lease expense is recognized ratably over the lease term, including rent abatement periodsand rent holidays.

Goodwill and Other Intangible AssetsIn accordance with U.S. GAAP, goodwill is not amortized and is tested for impairment at least annually or more frequently if indicatorsof impairment exist or if a decision is made to dispose of a business. Goodwill is allocated among and evaluated for impairment at thereporting unit level, which is defined as an operating segment or one level below an operating segment for which discrete financialinformation is available. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Suchindicators may include declining cash flows or operating losses at the reporting unit level, a significant adverse change in legal factorsor in the business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, or a more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of, amongothers.

The Company performs the annual goodwill impairment test as of October 1. The Company has seven reporting units (only three ofwhich have goodwill associated with them as of December 31, 2012), of which two are included in the Harsco Metals & MineralsSegment. The remaining reporting unit is the Harsco Rail Segment. Almost all of the Company's goodwill is allocated to the HarscoMetals business, which is included in the Harsco Metals & Minerals Segment.

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The evaluation of potential goodwill impairment involves comparing the current fair value of each reporting unit to its net book value,including goodwill. The Company uses a discounted cash flow model (“DCF model”) to estimate the current fair value of reportingunits, as management believes forecasted operating cash flows are the best indicator of current fair value. A

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number of significant assumptions and estimates are involved in the preparation of DCF models including future revenues and operatingmargin growth, the weighted-average cost of capital (“WACC”), tax rates, capital spending, pension funding, the impact of businessinitiatives, and working capital projections. These assumptions and estimates may vary significantly between reporting units. DCFmodels are based on approved operating plans for the early years and historical relationships and projections for later years. WACCrates are derived from internal and external factors including, but not limited to, the average market price of the Company's stock, sharesoutstanding, book value of the Company's debt, the long-term risk free interest rate, and both market and size-specific risk premiums.Due to the many variables noted above and the relative size of the Company's goodwill, differences in assumptions may have a materialimpact on the results of the Company's annual goodwill impairment testing. If the net book value of a reporting unit were to exceed itscurrent fair value, the second step of the goodwill impairment test would be required to determine if an impairment existed and theamount of goodwill impairment to record, if any. The second step of the goodwill impairment test compares the net book value of areporting unit's goodwill with the implied fair value of that goodwill. The implied fair value of goodwill represents the excess of fairvalue of the reporting unit over the fair value amounts assigned to all of the assets and liabilities of the reporting unit if it were to beacquired in a business combination and the current fair value of the reporting unit represented the purchase price. The second step of thegoodwill impairment test requires the utilization of valuation experts. The valuation of goodwill for the second step of the goodwillimpairment test is considered a level 3 fair value measurement.

Impairment of Long-Lived Assets (Other than Goodwill)Long-lived assets are reviewed for impairment when events and circumstances indicate that the carrying amount of an asset may not berecoverable. The Company's policy is to determine if an impairment loss exists when it is determined that the carrying amount of theasset exceeds the sum of the expected undiscounted future cash flows resulting from use of the asset, and its eventual disposition.Impairment losses are measured as the amount by which the carrying amount of the asset exceeds its fair value, normally as determinedin either open market transactions or through the use of a discounted cash flow model. Long-lived assets to be disposed of are reportedat the lower of the carrying amount or fair value less cost to sell.

Revenue RecognitionService revenues and product revenues are recognized when they are realized or realizable and when earned. Revenue is realized orrealizable and earned when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred orservices have been rendered, the Company's price to the buyer is fixed or determinable and collectability is reasonably assured. Servicerevenues include the Harsco Infrastructure Segment as well as service revenues of the Harsco Metals & Minerals Segment and HarscoRail Segment. Product revenues include the Harsco Industrial Segment and the product revenues of the Harsco Metals & MineralsSegment and the Harsco Rail Segment.

Harsco Metals & Minerals Segment—This Segment provides services predominantly on a long-term, volume-of-production contractbasis. Contracts may include both fixed monthly fees as well as variable fees based upon specific services provided to the customer. Thefixed-fee portion is recognized periodically as earned (normally monthly) over the contractual period. The variable-fee portion isrecognized as services are performed and differs from period to period based upon the actual provision of services. This Segment alsosells industrial abrasives and roofing granules products. Product revenues are recognized generally when title and risk of loss transfer,and when all of the revenue recognition criteria have been met. Title and risk of loss for domestic shipments generally transfer to thecustomer at the point of shipment. For export sales, title and risk of loss transfer in accordance with the international commercial termsincluded in the specific customer contract.

Harsco Infrastructure Segment—This Segment provides services under both fixed-fee and time-and-materials short-term contracts,rents equipment under month-to-month rental contracts and, to a lesser extent, sells products to customers. Equipment rentals arerecognized as earned over the contractual rental period. Services provided on a fixed-fee basis are recognized over the contractualperiod based upon the completion of specific units of accounting (i.e., erection and dismantling of equipment). Services provided on atime-and-materials basis are recognized when earned as services are performed. Product revenue is recognized when title and risk ofloss transfer, and when all of the revenue recognition criteria have been met.

Harsco Rail Segment—This Segment sells railway track maintenance equipment, parts and provides railway track maintenance services.Product revenue is recognized generally when title and risk of loss transfer, and when all of the revenue recognition criteria have beenmet. Title and risk of loss for domestic shipments generally transfer to the customer at the point of shipment. For export sales, title andrisk of loss transfer in accordance with the international commercial terms included in the specific customer contract. Revenue may berecognized subsequent to the transfer of title and risk of loss for certain product sales, if the specific sales contract includes a customeracceptance clause that provides for different timing. In those situations revenue is recognized after transfer of title and risk of loss and

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after customer acceptance. Services are predominantly on a long-term, time-and-materials contract basis. Revenue is recognized whenearned as services are performed within the long-term contracts.

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Harsco Industrial Segment—This Segment sells industrial grating products, heat exchangers, and heat transfer products. Productrevenues are generally recognized when title and risk of loss transfer, and when all of the revenue recognition criteria have been met.Title and risk of loss for domestic shipments generally transfer to the customer at the point of shipment. For export sales, title and risk ofloss transfer in accordance with the international commercial terms included in the specific customer contract.

Income TaxesThe Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets andliabilities for the expected future tax consequences of the events that have been included in the consolidated financial statements. Underthis method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax bases ofassets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a changein tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

The Company records deferred tax assets to the extent that the Company believes that these assets will more likely than not be realized.In making such determinations, the Company considers all available positive and negative evidence, including future reversals ofexisting deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial results. In the event theCompany was to determine that it would be able to realize deferred income tax assets in the future in excess of their net recordedamount, an adjustment to the valuation allowance would be made that would reduce the provision for income taxes.

The Company prepares and files its tax returns based on its interpretation of tax laws and regulations and records its provision forincome taxes based on these interpretations. Uncertainties may exist in estimating the Company's tax provisions and in filing its taxreturns in the many jurisdictions in which the Company operates, and as a result these interpretations may give rise to an uncertain taxposition. The tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustainedupon examination, including resolutions of any related appeals or litigation processes, based on its technical merits. Each subsequentperiod the Company determines if existing or new uncertain tax positions meet a more likely than not recognition threshold and adjustaccordingly.

The Company recognizes interest and penalties related to unrecognized tax benefits within Income tax expense in the accompanyingConsolidated Statements of Operations. Accrued interest and penalties are included in Other liabilities on the Consolidated BalanceSheets.

In general, it is the practice and the intention of the Company to reinvest the undistributed earnings of its non-U.S. subsidiaries. Shouldthe Company repatriate future earnings, such amounts would become subject to U.S. taxation upon remittance of dividends and undercertain other circumstances, thereby giving recognition to current tax expense and to international tax credits.

The significant assumptions and estimates described in the preceding paragraphs are important contributors to the effective tax rate eachyear.

Accrued Insurance and Loss ReservesThe Company retains a significant portion of the risk for U.S. workers' compensation, U.K. employers' liability, automobile, general andproduct liability losses. During 2012, 2011 and 2010, the Company recorded insurance expense from continuing operations related tothese lines of coverage of $33.8 million, $37.0 million and $38.5 million, respectively. Reserves have been recorded that reflect theundiscounted estimated liabilities including claims incurred but not reported. When a recognized liability is covered by third-partyinsurance, the Company records an insurance claim receivable to reflect the covered liability. Changes in the estimates of the reservesare included in net income (loss) in the period determined. During 2012, 2011 and 2010, the Company recorded retrospective insurancereserve adjustments that decreased pre-tax insurance expense from continuing operations for self-insured programs by $4.3 million, $2.7million and $2.5 million, respectively. At December 31, 2012 and 2011, the Company has recorded liabilities of $82.7 million and $85.9million, respectively, related to both asserted as well as unasserted insurance claims. Included in the balance at December 31, 2012 and2011 were $3.6 million and $2.6 million, respectively, of recognized liabilities covered by insurance carriers. Amounts estimated to bepaid within one year have been classified as current Insurance liabilities, with the remainder included in non-current Insurance liabilitieson the Consolidated Balance Sheets.

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WarrantiesThe Company has recorded product warranty reserves of $9.1 million, $5.6 million and $5.0 million at December 31, 2012, 2011 and2010, respectively. The Company provides for warranties of certain products as they are sold. The following table summarizes thewarranty activity for 2012, 2011 and 2010:

(In thousands) 2012 2011 2010

Warranty reserves, beginning of the year $ 5,596 $ 5,037 $ 4,078Accruals for warranties issued during the year 7,935 4,003 4,399Reductions related to pre-existing warranties (2,401) (1,769) (1,447)Warranties paid (1,958) (1,677) (2,054)Other (principally foreign currency translation) (80) 2 61

Warranty reserves, end of the year $ 9,092 $ 5,596 $ 5,037

Warranty expense and payments are incurred principally in the Harsco Rail and Harsco Industrial Segments. Warranty activity may varyfrom year to year depending upon the mix of revenues and contractual terms related to product warranties.

Foreign Currency TranslationThe financial statements of the Company's subsidiaries outside the United States, except for those subsidiaries located in highlyinflationary economies and those entities for which the U.S. dollar is the currency of the primary economic environment in which theentity operates, are measured using the local currency as the functional currency. Assets and liabilities of these subsidiaries aretranslated at the exchange rates at the balance sheet date. Resulting translation adjustments are recorded in the cumulative translationadjustment account, a separate component of Accumulated other comprehensive loss on the Consolidated Balance Sheets. Income andexpense items are translated at average monthly exchange rates. Gains and losses from foreign currency transactions are included in netincome (loss). For subsidiaries operating in highly inflationary economies, and those entities for which the U.S. dollar is the currency ofthe primary economic environment in which the entity operates, gains and losses on foreign currency transactions and balance sheettranslation adjustments are included in net income (loss). In 2012, 2011 and 2010, the Company had no subsidiaries operating in highlyinflationary economies.

Financial Instruments and HedgingThe Company has operations throughout the world that are exposed to fluctuations in related foreign currencies in the normal course ofbusiness. The Company seeks to reduce exposure to foreign currency fluctuations through the use of forward exchange contracts. TheCompany does not hold or issue financial instruments for trading purposes, and it is the Company's policy to prohibit the use ofderivatives for speculative purposes. The Company has a Foreign Currency Risk Management Committee that meets periodically tomonitor foreign currency risks.

The Company executes foreign currency forward exchange contracts to hedge transactions for firm purchase commitments, to hedgevariable cash flows of forecasted transactions and for export sales denominated in foreign currencies. These contracts are generally for90 days or less; however, where appropriate, longer-term contracts may be utilized. For those contracts that are designated as qualifiedcash flow hedges, gains or losses are recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheets.

The Company uses cross currency interest rate swaps in conjunction with certain debt issuances in order to lock in fixed local currencyinterest rates. Under these cross currency interest rate swaps, the Company receives interest based on a fixed or variable U.S. dollar rateand pays interest based on a fixed local currency rate based on the contractual amounts in U.S. dollars and the local currency,respectively.

Amounts recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheets are reclassified into operations in thesame period or periods during which the hedged forecasted transaction affects income. The cash flows from these contracts areclassified consistent with the cash flows from the transaction being hedged (e.g., the cash flows related to contracts to hedge thepurchase of fixed assets are included in cash flows from investing activities, etc.). The Company also enters into certain forwardexchange contracts that are not designated as hedges. Gains and losses on these contracts are recognized in operations based on changesin fair market value. For fair value hedges of a firm commitment, the gain or loss on the derivative and the offsetting gain or loss on thehedged firm commitment are recognized currently in operations.

Earnings Per Share

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Basic earnings per share are calculated using the weighted-average shares of common stock outstanding, while diluted earnings pershare reflect the dilutive effects of stock-based compensation. All share and per share amounts are restated for any stock splits and stockdividends that occur prior to the issuance of the financial statements. See Note 12, Capital Stock, for additional information on earningsper share.

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Use of Estimates in the Preparation of Financial StatementsThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions thataffect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financialstatements, and the reported amounts of revenues and expenses. Actual results could differ from those estimates.

2. Recently Adopted and Recently Issued Accounting Standards

The following accounting standards have been adopted in 2012:

On January 1, 2012, the Company adopted Financial Accounting Standards Board (“FASB”) issued changes related to fair valuemeasurement and disclosure. The changes are the result of convergence with International Financial Reporting Standards and clarifycertain fair value measurement concepts and expand on existing disclosure requirements on Level 3 fair value measurements. Theadoption of these changes did not have a material impact on the Company’s consolidated financial statements.

On January 1, 2012, the Company adopted FASB issued changes related to the presentation of comprehensive income. The changesremove certain presentation options and require entities to report components of comprehensive income in either a continuous statementof comprehensive income or two separate but consecutive statements. There were no changes to the items that are reported in othercomprehensive income. In December 2011, the FASB indefinitely deferred a requirement dealing with the presentation ofreclassification adjustments out of accumulated other comprehensive income. Other than the sequencing of financial statements, theadoption of these changes did not have an impact on the Company’s consolidated financial statements.

On January 1, 2012, the Company adopted FASB issued changes related to testing for goodwill impairment. The changes allow for anassessment of qualitative factors to determine whether it is necessary to perform the two-step impairment test. The adoption of thesechanges did not have an impact on the Company’s consolidated financial statements, but it may impact the manner in which theCompany performs testing for goodwill impairment.

The following accounting standard has been issued and becomes effective for the Company at a future date:

In December 2011, the FASB issued changes related to offsetting assets and liabilities. The changes require additional disclosureinformation regarding offsetting assets and liabilities to enable users of financial statements to understand the effect on financialposition. These changes become effective for the Company on January 1, 2013 with retrospective application required. Managementhas determined these changes will not have a material impact on the Company's consolidated financial statements.

3. Acquisitions and Dispositions

AcquisitionsCertain of the Company's acquisitions in prior years included contingent consideration features for which defined goals needed to bemet by the acquired business in order for payment of the consideration. Each quarter until settlement of these contingencies, theCompany assessed the likelihood that an acquired business would achieve the goals and the resulting fair value of the contingency. Inaccordance with U.S. GAAP, these adjustments were recognized in operating income (loss) in the Consolidated Statements ofOperations as a component of the Other expenses line item. The Company's assessment of these performance goals resulted in thefollowing reductions to previously recognized contingent consideration liabilities:

Years Ended December 31

(In thousands) 2012 2011 2010

Reduction of contingent consideration liabilities $ — $ 3,966 $ 10,620

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All contingent consideration liabilities have been settled and there was no recorded contingent consideration liability as ofDecember 31, 2012 or 2011.

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Net Income (Loss) Attributable to the Company and Transfers to Noncontrolling InterestThe purpose of the following schedule is to disclose the effects of changes in the Company's ownership interest in its subsidiaries on theCompany's equity.

Years Ended December 31

(In thousands) 2012 2011 2010

Net income (loss) attributable to the Company $ (254,612) $ (11,510) $ 6,754Decrease in the Company's paid-in capital for purchase of noncontrollinginterests — — (1,003)Change from net income (loss) attributable to the Company and transfers tononcontrolling interest $ (254,612) $ (11,510) $ 5,751

DispositionsConsistent with the Company's strategic focus to grow and allocate financial resources principally to its industrial services businesses,the Company sold its Gas Technologies Segment to Taylor Wharton International in 2007. The Company recorded after-tax losses fromdiscontinued operations of $0.9 million, $2.1 million and $4.1 million, in 2012, 2011 and 2010, respectively. The losses incurred in2012, 2011 and 2010 included charges related to potential and contingent claims. The Consolidated Statements of Operations for theyears ended 2012, 2011 and 2010 reflect the Gas Technologies Segment's results in discontinued operations.

Dispositions—Assets Held-for-SaleThroughout the past several years and in conjunction with the 2011/2012 Restructuring Program and the Fourth Quarter 2010 HarscoInfrastructure Program, management approved the sale of certain long-lived assets throughout the Company's operations. AtDecember 31, 2012 and December 31, 2011, assets held-for-sale of $2.4 million and $7.2 million, respectively, were recorded as Othercurrent assets on the Consolidated Balance Sheets.

4. Accounts Receivable and Inventories

Accounts receivable consist of the following:

Accounts Receivable

(In thousands)December 31

2012December 31

2011

Trade accounts receivable $ 617,517 $ 636,304Less: Allowance for doubtful accounts (17,253) (17,829)

Trade accounts receivable, net $ 600,264 $ 618,475

Other receivables (a) $ 39,836 $ 44,431(a) Other receivables include insurance claim receivables, employee receivables, tax claim receivables and other miscellaneous receivables not included in Trade

accounts receivable, net.

The provision for doubtful accounts related to trade accounts receivable for the years ended December 31, 2012, 2011 and 2010:

Years Ended December 31

(In thousands) 2012 2011 2010

Provision for doubtful accounts related to trade accounts receivable $ 11,266 $ 7,880 $ 9,962

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Inventories consist of the following:

Inventories

(In thousands)December 31

2012December 31

2011

Finished goods $ 69,904 $ 78,445Work-in-process 28,944 34,041Raw materials and purchased parts 99,058 92,995Stores and supplies 38,606 36,453

Total inventories $ 236,512 $ 241,934

Valued at lower of cost or market:LIFO basis $ 108,633 $ 115,523FIFO basis 14,641 13,087Average cost basis 113,238 113,324

Total inventories $ 236,512 $ 241,934

Inventories valued on the LIFO basis at December 31, 2012 and 2011 were approximately $28.5 million and $28.6 million, respectively,less than the amounts of such inventories valued at current costs.

As a result of reducing certain inventory quantities valued on the LIFO basis, net income increased from that which would have beenrecorded under the FIFO basis of valuation by $0.1 million, $0.1 million and $0.4 million in 2012, 2011 and 2010, respectively.

5. Property, Plant and Equipment

Property, plant and equipment consist of the following:

(In thousands)Estimated

Useful LivesDecember 31

2012December 31

2011

Land — $ 26,336 $ 26,729Land improvements 5-20 years 14,199 17,960Buildings and improvements 5-40 years 190,078 186,799Machinery and equipment 3-20 years 2,950,384 2,977,521Uncompleted construction — 107,633 66,719Gross property, plant and equipment 3,288,630 3,275,728Less: Accumulated depreciation (2,022,405) (2,001,244)

Property, plant and equipment, net $ 1,266,225 $ 1,274,484

Buildings and improvements include leasehold improvements which are amortized over the shorter of their useful lives or the initialterm of the lease.

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6. Goodwill and Other Intangible Assets

Goodwill by SegmentThe following table reflects the changes in carrying amounts of goodwill by segment (there is no goodwill associated with the HarscoIndustrial Segment) for the years ended December 31, 2012 and 2011:

(In thousands)

Harsco Metals& Minerals

Segment

HarscoInfrastructure

Segment

HarscoRail

SegmentConsolidated

Totals

Balance at December 31, 2010 $ 418,276 $ 263,212 $ 9,299 $ 690,787Changes to goodwill — (115) 11 (104)Foreign currency translation (6,400) (3,382) — (9,782)Balance at December 31, 2011 411,876 259,715 9,310 680,901Changes to goodwill (a) — (2,295) — (2,295)Goodwill impairment — (265,038) — (265,038)Foreign currency translation 8,012 7,618 — 15,630

Balance at December 31, 2012 $ 419,888 $ — $ 9,310 $ 429,198(a) Changes to goodwill relate principally to the allocation of goodwill, in accordance with U.S. GAAP, to components of the Harsco Infrastructure Segment that

were disposed of as part of the 2011/2012 Restructuring Program.

Goodwill ImpairmentAs discussed in Note 1, Summary of Significant Accounting Policies, Goodwill is tested for impairment annually or more frequently ifindicators of impairment exist or if a decision is made to dispose of a business. The valuation date for the Company's annual impairmenttesting is October 1. The first step of the October 1, 2012 annual goodwill impairment test indicated that the net book value of theHarsco Infrastructure reporting unit exceeded its current fair value, requiring the Company to perform the second step of the goodwillimpairment test to measure the amount of impairment loss, if any. In performing the second step of the goodwill impairment test, theCompany compared the implied fair value of goodwill for the Harsco Infrastructure reporting unit to its carrying value. This analysisresulted in a non-cash, goodwill impairment charge of $265.0 million, which was recognized during the fourth quarter of 2012. Thischarge had no impact on the Company's cash flows or compliance with debt covenants. As a result of this goodwill impairment charge,there is no remaining goodwill associated with the Harsco Infrastructure Segment.

The facts and circumstances leading to the goodwill impairment of the Harsco Infrastructure reporting unit primarily relate to aprolonged downturn in the European markets versus what was expected earlier in 2012 and its impact on the timing for near-term cashflows.

The Company's methodology for determining reporting unit fair value is described in Note 1, Summary of Significant AccountingPolicies. Performance of the Company's 2012 annual impairment test did not result in impairment of any of the Company's otherreporting units.

Intangible AssetsIntangible assets totaled $77.7 million, net of accumulated amortization of $172.6 million at December 31, 2012 and $93.5 million, netof accumulated amortization of $157.1 million at December 31, 2011. The following table reflects these intangible assets by majorcategory:

December 31, 2012 December 31, 2011

(In thousands)Gross Carrying

AmountAccumulatedAmortization

Gross CarryingAmount

AccumulatedAmortization

Customer related $ 183,862 $ 129,904 $ 183,576 $ 119,708Non-compete agreements 1,347 1,310 1,353 1,301Patents 6,909 5,503 6,884 5,145Technology related 29,588 17,551 29,497 14,614Trade names 18,685 11,688 18,538 8,379Other 9,947 6,656 10,749 7,949

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Total $ 250,338 $ 172,612 $ 250,597 $ 157,096

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Amortization expense for intangible assets was $17.6 million, $31.5 million and $33.0 million for 2012, 2011 and 2010, respectively.The following table shows the estimated amortization expense for the next five fiscal years based on current intangible assets.

(In thousands) 2013 2014 2015 2016 2017

Estimated amortization expense (a) $ 16,500 $ 14,250 $ 9,750 $ 8,000 $ 4,250(a) These estimated amortization expense amounts do not reflect the potential effect of future foreign currency exchange rate fluctuations.

7. Debt and Credit Agreements

The Company has credit facilities and commercial paper programs available for use throughout the world. The following tableillustrates the amounts outstanding on credit facilities and commercial paper programs, and available credit at December 31, 2012.These credit facilities and programs are described in more detail below the table.

Summary of Credit Facilities and Commercial Paper Programs at December 31, 2012

(In thousands)FacilityLimit

OutstandingBalance

AvailableCredit

U.S. commercial paper program $ 550,000 $ 39,497 $ 510,503Euro commercial paper program 263,900 — 263,900Multi-year revolving credit facility (a) 525,000 50,000 475,000

Totals $ 1,338,900 $ 89,497 $ 1,249,403 (b)

(a) U.S.-based program.(b) Although the Company has significant available credit, in practice, the Company limits aggregate commercial paper and credit facility borrowings at any one-

time to a maximum of $525 million (the amount of the back-up facility).

The Company has a U.S. commercial paper borrowing program under which it can issue up to $550 million of short-term notes in theU.S. commercial paper market. In addition, the Company has a 200 million euro commercial paper program, equivalent toapproximately $263.9 million at December 31, 2012, which can be used to fund the Company's international operations. AtDecember 31, 2012 and 2011, the Company had $39.5 million and $40.0 million outstanding, respectively, under the U.S. commercialpaper program. There were no borrowings under the euro commercial paper program at both December 31, 2012 and 2011.Classification of commercial paper outstanding is based on the Company's ability and intent to repay such amounts over the subsequenttwelve months, as well as reflects the Company's intent and ability to borrow for a period longer than a year. To the extent the Companyexpects to repay the commercial paper within the subsequent twelve months, the amounts are classified as short-term borrowings. AtDecember 31, 2012, the Company classified $39.5 million of commercial paper as long-term debt. At December 31, 2011, the Companyclassified $40.0 million of commercial paper and advances as short-term borrowings.

In March 2012, the Company entered into an Amended and Restated Five Year Credit Agreement (“Credit Agreement”) in the amountof $525 million through a syndicate of 14 banks. The Credit Agreement matures in March 2017. The Company has the option toincrease the amount of the Credit Agreement to $550 million. The Credit Agreement amends and restates the Company’s multi-yearrevolving credit facility, which was set to mature in December 2012. There were no borrowings outstanding under the multi-yearrevolving credit facility upon execution of the Credit Agreement. There was $50.0 million outstanding under the Credit Agreement atDecember 31, 2012. Borrowings under the Credit Agreement are available in most major currencies with active markets and at interestrates based upon LIBOR, plus a margin.

During the twelve months ended December 31, 2012, the Company expensed $0.5 million of previously deferred financing costsassociated with the prior multi-year revolving credit facility for banks that did not participate in the Credit Agreement or banks withdecreased obligations under the Credit Agreement, all of which occurred in the first quarter of 2012.

The Company's $25.0 million bilateral credit facility expired in December 2012 and was not renewed. At December 31, 2012 and 2011,there were no borrowings outstanding on this facility.

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At December 31, 2012, the Company's 5.125% notes due September 15, 2013 are classified as long-term debt on the ConsolidatedBalance Sheets based on the Company's intent and ability to refinance this debt using either the debt capital markets or borrowingsunder its Credit Agreement.

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Short-term borrowings amounted to $8.6 million and $51.4 million at December 31, 2012 and 2011, respectively. The December 31,2011 short-term borrowings balance included $40.0 million of commercial paper. Other than the commercial paper borrowings, short-term borrowings consist principally of bank overdrafts. The weighted-average interest rate for short-term borrowings at December 31,2012 and 2011 was 4.9% and 1.3%, respectively.

Long-Term Debt

(In thousands)December 31

2012December 31

2011

5.75% notes due May 15, 2018 $ 447,931 $ 447,6135.125% notes due September 15, 2013 149,875 149,7052.7% notes due October 15, 2015 249,022 248,681Other financing payable in varying amounts due principally through 2018 with a weighted-average interest rate of 2.7% and 9.4% at December 31, 2012 and 2011, respectively 113,878 11,359

960,706 857,358Less: current maturities (3,278) (3,558)

Total Long-term Debt $ 957,428 $ 853,800

The maturities of long-term debt for the four years following December 31, 2013 are as follows:

(In thousands)

2014 $ 14,7702015 252,3122016 1,3572017 240,683

Cash payments for interest on all debt were $45.5 million, $46.4 million and $59.9 million in 2012, 2011 and 2010, respectively.

The Company’s Credit Agreement contains covenants that stipulate a maximum debt to capital ratio of 60%, limit the proportion ofsubsidiary consolidated indebtedness to a maximum of 10% of consolidated tangible assets and specifies a minimum ratio of totalconsolidated earnings before interest, taxes, depreciation and amortization to consolidated interest charges of 3.0:1. The Company’s5.75% and 2.7% notes include covenants that require the Company to offer to repurchase the notes at 101% of par in the event of achange of control of the Company or disposition of substantially all of the Company’s assets in combination with a downgrade in theCompany’s credit rating to non-investment grade. At December 31, 2012, the Company was in compliance with these covenants.

8. Leases

The Company leases certain property and equipment under noncancelable operating leases. Rental expense under such operating leaseswas $54.9 million, $66.1 million and $62.9 million in 2012, 2011 and 2010, respectively.

Future minimum payments under operating leases with noncancelable terms are as follows:

(in thousands)

2013 $ 41,8812014 31,7762015 22,5582016 16,5182017 11,757

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After 2017 11,070

Total minimum rentals to be received in the future under noncancelable subleases at December 31, 2012 are $7.4 million.

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9. Employee Benefit Plans

Pension BenefitsThe Company has defined benefit pension retirement plans covering a substantial number of its employees. The defined benefits forsalaried employees generally are based on years of service and the employee's level of compensation during specified periods ofemployment. Defined benefit plans covering hourly employees generally provide benefits of stated amounts for each year of service.The multiemployer plans in which the Company participates provide benefits to certain unionized employees. The Company's fundingpolicy for qualified plans is consistent with statutory regulations and customarily equals the amount deducted for income tax purposes.The Company also makes periodic voluntary contributions as recommended by its pension committee. The Company's policy is toamortize prior service costs of defined benefit pension plans over the average future service period of active plan participants.

For most U.S. defined benefit pension plans and a majority of international defined benefit pension plans, accrued service is no longergranted. In place of these plans, the Company has established defined contribution pension plans providing for the Company tocontribute a specified matching amount for participating employees' contributions to the plan. For U.S. employees, this match is madeon employee contributions up to 4% of their eligible compensation. Additionally, the Company may provide a discretionary contributionof up to 2% of compensation for eligible employees. This discretionary amount has not been provided for the years 2012, 2011and 2010. For non-U.S. employees, this match is up to 6% of eligible compensation with an additional 2% going towards insurance andadministrative costs.

Net periodic pension cost for U.S. and international pension plans for 2012, 2011 and 2010 is as follows:

U.S. Plans International Plans

(In thousands) 2012 2011 2010 2012 2011 2010

Defined benefitplans:

Service cost $ 1,887 $ 1,557 $ 2,086 $ 3,418 $ 4,350 $ 4,052Interest cost 12,780 13,468 14,049 46,174 48,768 47,558Expected returnon plan assets (15,617) (16,480) (16,632) (45,050) (52,735) (46,079)Recognized priorservice costs 224 245 339 397 424 327Recognizedlosses 4,637 2,982 2,537 15,194 11,332 12,077Amortization oftransitionliability — — — 8 43 45Settlement/curtailment loss(gain) 1,510 — 179 (2,589) 183 (210)

Defined benefitplans pension cost 5,421 1,772 2,558 17,552 12,365 17,770Multiemployerplans 10,186 13,264 10,924 5,539 6,547 6,396Definedcontribution plans 5,066 5,434 5,918 12,770 14,157 13,298

Net periodicpension cost $ 20,673 $ 20,470 $ 19,400 $ 35,861 $ 33,069 $ 37,464

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The change in the financial status of the pension plans and amounts recognized on the Consolidated Balance Sheets at December 31,2012 and 2011 are as follows:

U.S. Plans International Plans

(In thousands) 2012 2011 2012 2011

Change in benefit obligation:Benefit obligation at beginning of year $ 298,769 $ 264,969 $ 968,218 $ 883,342Service cost 1,887 1,557 3,418 4,350Interest cost 12,780 13,468 46,174 48,768Plan participants' contributions — — 830 986Amendments — — 60 598Actuarial loss 27,803 40,730 65,379 79,474Settlements/curtailments (3,029) — (9,506) (1,886)Benefits paid (21,762) (21,955) (44,968) (37,653)Effect of foreign currency — — 39,181 (10,332)Other — — (36) 571

Benefit obligation at end of year $ 316,448 $ 298,769 $ 1,068,750 $ 968,218

Change in plan assets:Fair value of plan assets at beginning of year $ 209,237 $ 221,673 $ 714,163 $ 708,025Actual return on plan assets 27,429 6,464 58,194 19,488Employer contributions 6,254 3,055 29,713 29,300Plan participants' contributions — — 830 986Settlements/curtailments (3,074) — (3,885) (1,127)Benefits paid (21,762) (21,955) (43,954) (36,631)Effect of foreign currency — — 27,998 (6,449)Other — — — 571

Fair value of plan assets at end of year $ 218,084 $ 209,237 $ 783,059 $ 714,163

Funded status at end of year $ (98,364) $ (89,532) $ (285,691) $ (254,055)

Amounts recognized on the Consolidated Balance Sheets consist of the following at December 31, 2012 and 2011:

U.S. Plans International Plans

(In thousands)December 31

2012December 31

2011December 31

2012December 31

2011

Noncurrent assets $ 490 $ 397 $ 5,892 $ 4,372Current liabilities (2,531) (2,076) (1,048) (1,011)Noncurrent liabilities (96,323) (87,853) (290,535) (257,416)Accumulated other comprehensive loss before tax 159,094 149,429 469,949 417,406

Amounts recognized in Accumulated other comprehensive loss, before tax, consist of the following at December 31, 2012 and 2011:

U.S. Plans International Plans

(In thousands) 2012 2011 2012 2011

Net actuarial loss $ 158,579 $ 148,690 $ 467,438 $ 414,203

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Prior service cost 515 739 2,511 3,105Transition obligation — — — 98

Total $ 159,094 $ 149,429 $ 469,949 $ 417,406

The estimated amounts that will be amortized from accumulated other comprehensive loss into defined benefit net periodic pension costin 2013 are as follows:

(In thousands) U.S. Plans International Plans

Net actuarial loss $ 5,052 $ 17,180Prior service cost 143 367

Total $ 5,195 $ 17,547

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The Company's estimate of expected contributions to be paid in year 2013 for the U.S. defined benefit plans is $2.8 million and for theinternational defined benefit plans is $31.3 million.

Future Benefit PaymentsThe expected benefit payments for defined benefit plans over the next 10 years are as follows:

(In millions) 2013 2014 2015 2016 2017 2018-2022

U.S. Plans $ 19.7 $ 18.7 $ 18.5 $ 18.8 $ 18.5 $ 92.7International Plans 46.1 47.6 49.5 51.6 54.1 296.1

Net Periodic Pension Cost AssumptionsThe weighted-average actuarial assumptions used to determine the net periodic pension cost for 2012, 2011 and 2010 were as follows:

U.S. PlansDecember 31

International PlansDecember 31

Global Weighted-AverageDecember 31

2012 2011 2010 2012 2011 2010 2012 2011 2010

Discount rates 4.4% 5.3% 5.9% 4.8% 5.5% 5.7% 4.7% 5.4% 5.8%Expected long-termrates of return on planassets 7.8% 7.8% 8.0% 6.7% 7.4% 7.4% 6.9% 7.5% 7.5%Rates ofcompensationincrease 3.0% 3.0% 3.0% 3.4% 3.3% 3.6% 3.4% 3.3% 3.6%

The expected long-term rates of return on plan assets for the 2013 net periodic pension cost are 7.5% for the U.S. plans and 6.6% for theinternational plans. The expected global long-term rate of return on assets for 2013 is 6.8%.

Defined Benefit Pension Obligation AssumptionsThe weighted-average actuarial assumptions used to determine the defined benefit pension plan obligations at December 31, 2012and 2011 were as follows:

U.S. Plans International Plans Global Weighted-Average

December 31 December 31 December 31

2012 2011 2012 2011 2012 2011

Discount rates 3.8% 4.4% 4.3% 4.8% 4.2% 4.7%Rates of compensation increase 3.0% 3.0% 2.8% 3.4% 2.8% 3.4%

The U.S. discount rate was determined using a yield curve that was produced from a universe containing approximately 650 U.S. dollar-denominated, AA-graded corporate bonds, all of which were noncallable (or callable with make-whole provisions), and excluding the10% of the bonds with the highest yields and the 10% with the lowest yields within each maturity group. The discount rate was thendeveloped as the level-equivalent rate that would produce the same present value as that using spot rates to discount the projectedbenefit payments. For international plans, the discount rate is aligned to corporate bond yields in the local markets, normally AA-ratedcorporations. The process and selection seeks to approximate the cash inflows with the timing and amounts of the expected benefitpayments.

Accumulated Benefit ObligationThe accumulated benefit obligation for all defined benefit pension plans at December 31, 2012 and 2011 was as follows:

U.S. Plans International Plans

December 31 December 31

(In millions) 2012 2011 2012 2011

Accumulated benefit obligation $ 316.4 $ 298.6 $ 1,055.7 $ 952.8

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Plans with Accumulated Benefit Obligation in Excess of Plan AssetsThe projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefitobligations in excess of plan assets at December 31, 2012 and 2011 were as follows:

U.S. Plans International Plans

(In millions)December 31

2012December 31

2011December 31

2012December 31

2011

Projected benefit obligation $ 306.5 $ 288.7 $ 1,040.4 $ 929.1Accumulated benefit obligation 306.5 288.7 1,029.4 921.0Fair value of plan assets 207.7 198.8 749.6 673.9

The asset allocations attributable to the Company's U.S. defined benefit pension plans at December 31, 2012 and 2011, and the long-term target allocation of plan assets, by asset category, are as follows:

U.S. PlansPercentage of Plan Assets at

December 31

Asset CategoryTarget Long-Term

Allocation 2012 2011

Domestic equity securities 34%-44% 38.0% 38.0%International equity securities 14%-24% 19.7% 18.0%Fixed income securities 27%-37% 30.5% 32.8%Cash and cash equivalents Less than 5% 2.3% 1.9%Other 5%-15% 9.5% 9.3%

Plan assets are allocated among various categories of equities, fixed income securities and cash and cash equivalents with professionalinvestment managers whose performance is actively monitored. The primary investment objective is long-term growth of assets in orderto meet present and future benefit obligations. The Company periodically conducts an asset/liability modeling study and accordinglyadjusts investments among and within asset categories to ensure the long-term investment strategy is aligned with the profile of benefitobligations.

The Company reviews the long-term expected return on asset assumption on a periodic basis taking into account a variety of factorsincluding the historical investment returns achieved over a long-term period, the targeted allocation of plan assets and futureexpectations based on a model of asset returns for an actively managed portfolio, inflation and administrative/other expenses. Themodel simulates 600 different capital market results over 15 years. For 2013 and 2012, the expected return-on-asset assumption for U.S.plans was 7.5% and 7.8%, respectively.

The U.S. defined benefit pension plans assets include 450,000 shares of the Company's stock valued at $10.6 million at December 31,2012 and 432,203 shares of the Company's common stock valued at $9.0 million at December 31, 2011. These shares represented 4.8%and 4.3% of total plan assets at December 31, 2012 and 2011, respectively. Dividends paid to the pension plans on the Company's stockamounted to $0.4 million in 2012, 2011 and 2010.

The asset allocations attributable to the Company's international defined benefit pension plans at December 31, 2012 and 2011 and thelong-term target allocation of plan assets, by asset category, are as follows:

Percentage of Plan Assets atDecember 31

International Plans Asset CategoryTarget Long-Term

Allocation 2012 2011

Equity securities 37.5% 34.5% 34.7%Fixed income securities 42.5% 48.0% 50.0%Cash and cash equivalents — 0.2% 0.4%Other 20.0% 17.3% 14.9%

Plan assets at December 31, 2012 in the U.K. defined benefit pension plan amounted to 85% of the international pension assets. Theseassets are allocated among various categories of equities, fixed income securities and cash and cash equivalents with professional

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investment managers whose performance is actively monitored. The primary investment objective is long-term growth of assets in orderto meet present and future benefit obligations. The Company periodically conducts asset/liability modeling studies and accordinglyadjusts investment amounts within asset categories to ensure the long-term investment strategy is aligned with the profile of benefitobligations.

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For the international long-term rate of return assumption, the Company considered the current level of expected returns in risk-freeinvestments (primarily government bonds), the historical level of the risk premium associated with other asset classes in which theportfolio is invested and the expectations for future returns of each asset class and plan expenses. The expected return for each assetclass was then weighted based on the target asset allocation to develop the expected long-term rate of return on assets. For both 2013and 2012, the expected return on asset assumption for the U.K. plan is 6.8%. The remaining international pension plans, with assetsrepresenting 15% of the international pension assets, are under the guidance of professional investment managers and have similarinvestment objectives.

The fair values of the Company's U.S. pension plans' assets at December 31, 2012 by asset class are as follows:

(In thousands) Total Level 1 Level 2 Level 3

Domestic equities:Common stocks $ 42,142 $ 42,142 $ — $ —Mutual funds—equities 40,727 11,110 29,617 —

International equities—mutual funds 42,962 37,651 5,311 —Fixed income investments:

U.S. Treasuries and collateralized securities 22,625 — 22,625 —Corporate bonds and notes 7,539 7,539 — —Mutual funds—bonds 36,447 36,447 — —

Other—mutual funds 20,667 20,667 — —Cash and money market accounts 4,975 4,975 — —

Total $ 218,084 $ 160,531 $ 57,553 $ —

The fair values of the Company's international pension plans' assets at December 31, 2012 by asset class are as follows:

(In thousands) Total Level 1 Level 2 Level 3

Equity securities:Mutual funds—equities $ 269,789 $ — $ 269,789 $ —

Fixed income investments:Mutual funds—bonds 309,274 — 309,274 —Insurance contracts 66,900 — 66,900 —

Other:Real estate funds/limited partnerships 49,007 — 31,261 17,746Other mutual funds 86,537 — 86,537 —

Cash and money market accounts 1,552 1,552 — —

Total $ 783,059 $ 1,552 $ 763,761 $ 17,746

The fair values of the Company's U.S. pension plans' assets at December 31, 2011 by asset class are as follows:

(In thousands) Total Level 1 Level 2 Level 3

Domestic equities:Common stocks $ 39,295 $ 39,295 $ — $ —Mutual funds—equities 40,107 19 40,088 —

International equities—mutual funds 37,740 33,198 4,542 —Fixed income investments:

U.S. Treasuries and collateralized securities 23,054 — 23,054 —Corporate bonds and notes 5,507 5,507 — —Mutual funds—bonds 40,110 40,110 — —

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Other—mutual funds 19,392 19,392 — —Cash and money market accounts 4,032 4,032 — —

Total $ 209,237 $ 141,553 $ 67,684 $ —

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The fair values of the Company's international pension plans' assets at December 31, 2011 by asset class are as follows:

(In thousands) Total Level 1 Level 2 Level 3

Equity securities:Mutual funds—equities $ 247,629 $ — $ 247,629 $ —

Fixed income investments:Corporate bonds and notes — — — —Mutual funds—bonds 294,010 — 294,010 —Insurance contracts 63,169 — 63,169 —

Other:Real estate funds / limited partnerships 43,122 — 31,097 12,025Other mutual funds 63,568 — 63,568 —

Cash and money market accounts 2,665 2,665 — —

Total $ 714,163 $ 2,665 $ 699,473 $ 12,025

The following table summarizes changes in the fair value of Level 3 assets for 2011 and 2012:

Level 3 Asset Changes for the Twelve Months Ended December 31

(In thousands) 2012 2011 2010

Real Estate Limited Partnership:Balance at beginning of year $ 12,025 $ 10,184 $ 10,994Contributions to partnership 2,535 5,697 2,344Cash distributions received (1,270) (333) (636)Actual return on plan assets:Related to asset still held at end of year 4,456 (3,523) (2,518)

Balance at end of year $ 17,746 $ 12,025 $ 10,184

Following is a description of the valuation methodologies used for the plans' investments measured at fair value:

• Level 1 Fair Value Measurements—Investments in interest-bearing cash are stated at cost, which approximates fair value.The fair values of money market accounts and certain mutual funds are based on quoted net asset values of the shares heldby the Plan at year-end. The fair values of domestic and international stocks and corporate bonds, notes and convertibledebentures are valued at the closing price reported in the active market on which the individual securities are traded.

• Level 2 Fair Value Measurements—The fair values of investments in mutual funds for which quoted net asset values in anactive market are not available are valued by the investment advisor based on the current market values of the underlyingassets of the mutual fund based on information reported by the investment consistent with audited financial statements of themutual fund. Further information concerning these mutual funds may be obtained from their separate audited financialstatements. Investments in U.S. Treasury notes and collateralized securities are valued based on yields currently available oncomparable securities of issuers with similar credit ratings.

• Level 3 Fair Value Measurements—Real estate limited partnership interests are valued by the general partners based on theunderlying assets. The limited partnership interests are valued using unobservable inputs and have been classified withinLevel 3 of the fair value hierarchy.

Multiemployer PlansThe Company contributes to numerous multiemployer pension plans under the terms of collective-bargaining agreements that cover itsunion-represented employees, many of whom are temporary in nature. The risks of participating in multiemployer pension plans differfrom traditional company-sponsored defined benefit plans as follows:

• Assets contributed to a multiemployer pension plan by one employer may be used to provide benefits to the employees ofother participating employers;

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• When a participating employer stops contributing to a multiemployer pension plan, the unfunded obligations of the planbecome the responsibility of the remaining participating employers, subject to any exemptions that may apply; and

• If the Company elects to stop participation in a multiemployer pension plan, the Company may be required to pay awithdraw liability which is based upon the underfunded status of the plan.

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The Company's participation in multiemployer pension plans for the years ended December 31, 2012, 2011 and 2010 is outlined below.The Company considers significant plans to be those plans to which the Company contributed more than 5% of total contributions to theplan in a given plan year or for which the Company believes its share of the unfunded liability for the plan may be material to theCompany. The most recent Pension Protection Act zone status available in 2012 and 2011 is for plan years ended in 2011 and 2010,respectively. The zone status is based on information that the Company received from the plan and is certified by the plan's actuary:Green represents a plan that is more than 80% funded; Yellow represents a plan that is between 65% and 80% funded; and Redrepresents a plan that is less than 65% funded.

(In thousands)

Pension ProtectionAct Zone Status For

Plan Years EndedContributions By The Company

For Plan Years Ended (b)

Pension FundIdentification

Number 2011 2010 2012 2011 2010

Subject toFinancial

ImprovementPlan

SurchargeImposed

ExpirationDate of

Collective-BargainingAgreement

Significant multiemployer plans for which plan financial information is publicly available outside the Company's financial statements:Cumberland MD VicinityBuilding ConstructionEmployees Trust Fund 52-6061646 Green Green $ 472 $ 477 $ 556 No No 2013Greater PennsylvaniaCarpenters' Pension Fund 25-6135570 Green Yellow 1,176 1,542 1,412 Yes No 2014Ohio Carpenters' PensionPlan 34-6574360 Green Green 768 953 777 Yes No 2013Significant multiemployer plans for which plan financial information is not publicly available outside the Company's financial statements:New Zealand Steel PensionFund 018-054-531 N/A N/A 909 891 810 Yes No 2013Summary aggregate information for multiemployer plans which are not individually significant:All other multiemployerplans 12,489 16,418 13,602

Total Contributions (a) $ 15,814 $ 20,281 $ 17,157

(a) Contributions to multiemployer pension plans in 2010 do not include $8.3 million of plan withdrawal costs triggered as the Company has ceased, or expects tocease, contributing to ten multiemployer plans for certain locations as part of the Harsco Infrastructure Segment's restructuring initiatives. These restructuringinitiatives are described in Note 18, Restructuring Programs. The $8.3 million of costs is included in the Other expenses line of the Consolidated Statements ofOperations, as described in Note 16, Other Expenses.

(b) These amounts represent either contributions for the plan year as confirmed by plan sponsors or the Company's estimates based on its fiscal year accountspayable records which will be updated as confirmation is received from plan sponsors.

For plan years ended 2012, 2011 and 2010, the Company contributed more than 5% of the total contributions to the Cumberland MDVicinity Building Construction Employees Trust Fund. For plan years ended 2012, 2011 and 2010, the Company contributed more than5% of the total contributions to the New Zealand Steel Pension Fund. At the date these financial statements were issued, financialinformation from plan sponsors was unavailable for plan years ended in 2012.

The New Zealand Steel Pension Fund is a defined benefit superannuation scheme registered in New Zealand under the SuperannuationSchemes Act of 1989 to provide retirement benefits to the salaried employees of the New Zealand Steel United Group of companies.The New Zealand Steel Pension Fund financial statements for the years ended June 30, 2012 and 2011 indicated total assets of $252.5million and $253.9 million, respectively; total actuarial present value of accumulated plan benefits of $283.7 million and $278.4 million,respectively; and total contributions for all participating employers of $10.6 million and $11.3 million, respectively.

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10. Income Taxes

Income (loss) from continuing operations before income taxes and equity income as reported in the Consolidated Statements ofOperations consists of the following:

(In thousands) 2012 2011 2010

United States $ 40,411 $ 47,680 $ 23,037International (258,906) (6,015) (2,561)

Total income (loss) before income taxes and equity income $ (218,495) $ 41,665 $ 20,476

Income tax expense as reported in the Consolidated Statements of Operations consists of the following:

(In thousands) 2012 2011 2010

Income tax expense (benefit):Currently payable:

U.S. federal $ 22,603 $ 4,249 $ (325)U.S. state 1,561 913 453International 21,795 23,860 30,765

Total income taxes currently payable 45,959 29,022 30,893Deferred U.S. federal (3,831) 670 6,228Deferred U.S. state (843) 503 (56)Deferred international (6,034) 19,653 (32,789)

Total income tax expense $ 35,251 $ 49,848 $ 4,276

Cash payments for income taxes, including taxes on the gain or loss from discontinued business, were $42.6 million, $42.3 million and$27.4 million for 2012, 2011 and 2010, respectively.

The following is a reconciliation of the normal expected statutory U.S. federal income tax rate to the effective income tax rate as apercentage of Income (loss) from continuing operations before income taxes and noncontrolling interest as reported in the ConsolidatedStatements of Operations:

2012 2011 2010

U.S. federal income tax rate 35.0 % 35.0 % 35.0 %U.S. state income taxes, net of federal income tax benefit (0.1) 2.9 5.1U.S. domestic manufacturing deductions and credits 1.7 (9.6) (5.9)Change in permanent reinvestment assertion — — 9.3Difference in effective tax rates on international earnings and remittances (0.7) (11.7) (34.4)Uncertain tax position contingencies and settlements 2.5 (18.0) 1.2Changes in realization on beginning of the year deferred tax assets (1.8) 89.1 8.4Restructuring charges with no realizable tax benefits (9.8) 23.0 11.2U.S. nondeductible items (0.7) 6.0 8.7Deferred charges — — (19.0)Non-deductible goodwill impairment (42.5) — —Cumulative effect of change in statutory tax rates/laws 0.1 3.5 3.4Other, net 0.2 (0.6) (2.1)

Effective income tax rate (16.1)% 119.6 % 20.9 %

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The decrease in the effective income tax rate for 2012 compared with 2011 is the result of lower earnings from continuing operations, anon-deductible goodwill impairment charge of $265.0 million for which the Company has no tax basis as a result of historical stockacquisitions, and a change in the realizability of beginning of the year deferred tax assets of $37.3 million primarily related to theCompany's U.K. deferred tax assets on its U.K. pension obligations recorded in 2011 and not repeated in 2012. The decrease in theeffective tax rate for 2012 compared with 2011 was offset by a change in the earnings mix of the Company for year 2012 compared withprior years primarily due to the jurisdictional impact of the Company's restructuring charges, and the reduction in tax benefits from thelapse of several statutes of limitations for uncertain tax positions in 2012 compared to 2011.

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The tax effects of the temporary differences giving rise to the Company's deferred tax assets and liabilities at December 31, 2012 and2011 are as follows:

2012 2011

(In thousands) Asset Liability Asset Liability

Depreciation and amortization $ — $ 99,219 $ — $ 120,590Expense accruals 38,595 — 43,418 —Inventories 2,649 — 2,588 —Provision for receivables 1,677 — 2,205 —Deferred revenue — 2,014 — 2,065Operating loss carryforwards 99,475 — 79,408 —Foreign tax credit carryforwards 24,223 — 29,540 —Pensions 104,413 — 95,657 —Currency adjustments 26,661 — 30,813 —Post-retirement benefits 1,160 — 1,079 —Other 25,324 — 19,299 —Subtotal 324,177 101,233 304,007 122,655Valuation allowance (126,532) — (99,617) —

Total deferred income taxes $ 197,645 $ 101,233 $ 204,390 $ 122,655

The deferred tax asset and liability balances recognized on the Consolidated Balance Sheets at December 31, 2012 and 2011 are asfollows:

(In thousands) 2012 2011

Other current assets $ 45,672 $ 50,694Other assets 70,271 59,200Other current liabilities (651) (729)Deferred income taxes (18,880) (27,430)

At December 31, 2012, the tax-effected amount of net operating loss carryforwards ("NOLs") totaled $99.5 million. Tax-effected NOLsfrom international operations are $90.4 million. Of that amount, $63.6 million can be carried forward indefinitely, and $26.8 million willexpire at various times between 2013 and 2032. Tax-effected U.S. state NOLs are $9.1 million. Of that amount, $0.1 million expire atvarious times between 2013 and 2017, $3.1 million expire at various times between 2018 and 2022, $2.7 million expire at various timesbetween 2023 and 2027, and $3.2 million expire at various times between 2028 and 2032.

The valuation allowances of $126.5 million and $99.6 million at December 31, 2012 and 2011, respectively, related principally todeferred tax assets for U.K. pension liabilities, NOLs, currency translation and foreign investment tax credits that are uncertain as torealizability. Due to the negative financial performance of the Company's U.K. operations and restructuring charges, the Companyrecorded a non-cash tax expense of approximately $6.1 million and $35.4 million in 2012 and 2011 to recognize a valuation allowanceto fully offset the U.K. operations' net deferred tax assets primarily related to U.K. pension liabilities and losses from operations, as theCompany determined it is more likely than not that these assets will not be realized. Additionally in 2011, the Company recorded anadditional valuation allowance of approximately $22.9 million through Accumulated other comprehensive loss related to U.K. pensionliability adjustments that were recorded through Accumulated other comprehensive loss during 2011. Excluding the valuation allowanceactivity related to the Company's U.K. operations, the remaining increase in valuation allowances resulted primarily from restructuringcharges that were incurred in certain jurisdictions which generated losses, where the Company determined it is more likely than not thatthese assets will not be realized.

The Company has not provided U.S. income taxes on certain of its non-U.S. subsidiaries' undistributed earnings as such amounts areindefinitely reinvested outside the United States. At December 31, 2012 and 2011, such earnings were approximately $882 million and

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$834 million, respectively. If these earnings were repatriated at December 31, 2012, the one-time tax cost associated with therepatriation would be approximately $166 million.

The Company has a tax holiday in Asia that expired in 2012. The Company no longer has tax holidays in Europe and the Middle East asthey have all expired. During 2011, the tax holidays resulted in a reduction of $0.1 million in income tax expense, while during 2010and 2012 these tax holidays resulted in no change to income tax expense.

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The Company recognizes accrued interest and penalty expense related to unrecognized income tax benefits ("UTB") in income taxexpense. During 2012, 2011 and 2010 the Company recognized an income tax benefit of $1.8 million, $1.0 million and $0.3 million,respectively, for interest and penalties. The Company has accrued $8.0 million and $9.7 million for the payment of interest and penaltiesat December 31, 2012 and 2011, respectively.

A reconciliation of the change in the UTB balance from January 1, 2010 to December 31, 2012 is as follows:

(In thousands)

UnrecognizedIncome Tax

Benefits

DeferredIncome Tax

Benefits

UnrecognizedIncome Tax

Benefits, Net ofDeferred Income

Tax Benefits

Balances, January 1, 2010 $ 36,791 $ (949) $ 35,842Additions for tax positions related to the current year (includes currencytranslation adjustment) 1,846 — 1,846Additions for tax positions related to prior years (includes currencytranslation adjustment) 313 (44) 269Other reductions for tax positions related to prior years (429) — (429)Statutes of limitation expirations (2,348) 156 (2,192)Settlements (284) 99 (185)Balance at December 31, 2010 $ 35,889 $ (738) $ 35,151Additions for tax positions related to the current year (includes currencytranslation adjustment) 2,534 (10) 2,524Additions for tax positions related to prior years (includes currencytranslation adjustment) 4,014 (11) 4,003Other reductions for tax positions related to prior years (147) — (147)Statutes of limitation expirations (8,521) 224 (8,297)Settlements (361) 18 (343)Balance at December 31, 2011 $ 33,408 $ (517) $ 32,891Additions for tax positions related to the current year (includes currencytranslation adjustment) 584 (8) 576Additions for tax positions related to prior years (includes currencytranslation adjustment) 37 2 39Other reductions for tax positions related to prior years (3,987) — (3,987)Statutes of limitation expirations (5,124) 154 (4,970)Settlements — — —Total unrecognized income tax benefits that, if recognized, would impact theeffective income tax rate at December 31, 2012 $ 24,918 $ (369) $ 24,549

Included in the additions for tax positions related to the current year for 2012 is approximately $0.2 million of unrecognized tax benefitsthat created additional operating losses in a foreign jurisdiction. To the extent the unrecognized tax benefit is recognized, a full valuationallowance would be recorded against these operating losses.

Included in the other reductions for tax positions related to prior years for 2012 is $4.0 million of previously unrecognized tax benefits,which were recognized in 2012 as a result of changes in legislation in a foreign jurisdiction. These benefits were previously deemed tonot meet the more likely than not standard.

Within the next twelve months, it is reasonably possible that up to $3.8 million of unrecognized income tax benefits will be recognizedupon settlement of tax examinations and the expiration of various statutes of limitations

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The Company files its income tax returns as prescribed by the tax laws of the jurisdictions in which it operates. With few exceptions, theCompany is no longer subject to U.S. and international examinations by tax authorities for the years through 2006.

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11. Commitments and Contingencies

EnvironmentalThe Company is involved in a number of environmental remediation investigations and cleanups and, along with other companies, hasbeen identified as a "potentially responsible party" for certain waste disposal sites. While each of these matters is subject to variousuncertainties, it is probable that the Company will agree to make payments toward funding certain of these activities and it is possiblethat some of these matters will be decided unfavorably to the Company. The Company has evaluated its potential liability, and itsfinancial exposure is dependent upon such factors as the continuing evolution of environmental laws and regulatory requirements, theavailability and application of technology, the allocation of cost among potentially responsible parties, the years of remedial activityrequired and the remediation methods selected. The Consolidated Balance Sheets at December 31, 2012 and 2011 include accruals inOther current liabilities of $1.9 million and $2.5 million, respectively, for environmental matters. The amounts charged against pre-taxincome related to environmental matters totaled $1.2 million, $2.0 million and $2.6 million in 2012, 2011 and 2010, respectively.

The Company evaluates its liability for future environmental remediation costs on a quarterly basis. Although actual costs to be incurredat 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 withenvironmental 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 DisputesThe Company is involved in a number of tax disputes with federal, state and municipal tax authorities in Brazil. These disputes are atvarious stages of the legal process, including the administrative review phase and the collection action phase, and include assessmentsof fixed amounts of principal and penalties, plus interest charges that increase at statutorily determined amounts per month and areassessed on the aggregate amount of the principal and penalties. In addition, the losing party at the collection action or court of appealsphase could be subject to a charge to cover statutorily mandated legal fees, which are generally calculated as a percentage of the totalassessed amounts due, inclusive of penalty and interest. A large number of the claims relate to value-added ("ICMS"), services andsocial security ("INSS") tax disputes. The largest proportion of the assessed amounts relate to ICMS claims filed by the State RevenueAuthorities 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 theState of São Paulo in relation to services provided to a customer in the State between January 2004 and May 2005. As of December 31,2012, the principal amount of the tax assessment from the SPRA with regard to this case is approximately $3 million, with penalty,interest and fees assessed to date increasing such amount by an additional $29 million. Any increase in the aggregate amount since theCompany's last Quarterly Report on Form 10-Q is due to an increase in assessed interest and statutorily mandated legal fees for thequarter. All such amounts include the effect of 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 theadministrative phase, where the aggregate amount assessed by the tax authorities in August 2005 was $12 million (the amounts withregard to this claim are valued as of the date of the assessment since it has not yet reached the collection phase), composed of a principalamount of approximately $3 million, with penalty and interest assessed through that date increasing such amount by an additional $9million. All such amounts include the effect of foreign currency translation.

The Company continues to believe that it is not probable it will incur a loss for these assessments by the SPRA and continues to believethat sufficient coverage for these claims exists as a result of the Company's customer's indemnification obligations and such customer'spledge of assets in connection with the October 2009 notice, as required by Brazilian procedure.

The Company intends to continue its practice of vigorously defending itself against these tax claims under various alternatives,including judicial appeal. The Company will continue to evaluate its potential liability with regard to these claims on a quarterly basis;however, it is not possible to predict the ultimate outcome of these tax-related disputes in Brazil. No loss provision has been recorded inthe Company's consolidated financial statements because the loss contingency is not deemed probable, and the Company does notexpect that any costs that are reasonably possible to be incurred by the Company in connection with Brazilian tax disputes would have amaterial adverse effect on the Company's financial condition, results of operations or cash flows.

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Customer DisputesThe Company, through its Harsco Metals & Minerals Segment, provides services to various subsidiaries and affiliates of ArcelorMittal("ArcelorMittal") on a number of sites worldwide through long-term service contracts. Currently, ArcelorMittal and the Company areinvolved in several commercial disputes, a few of which have resulted in legal action. Both the Company and ArcelorMittal are workingto resolve these matters. Although results of operations and cash flows for a given period could be adversely affected by a negativeoutcome in these or other lawsuits, claims and proceedings, management believes that the ultimate outcome of these matters will nothave a material adverse effect on the Company's financial condition, results of operations or cash flows.

OtherIn the United States, the Company has been named as one of many defendants (approximately 90 or more in most cases) in legal actionsalleging personal injury from exposure to airborne asbestos over the past several decades. In their suits, the plaintiffs have named asdefendants, among others, many manufacturers, distributors and installers of numerous types of equipment or products that allegedlycontained asbestos.

The Company believes that the claims against it are without merit. The Company has never been a producer, manufacturer or processorof asbestos fibers. Any component within a Company product that may have contained asbestos would have been purchased from asupplier. Based on scientific and medical evidence, the Company believes that any asbestos exposure arising from normal use of anyCompany product never presented any harmful levels of airborne asbestos exposure, and, moreover, the type of asbestos contained inany component that was used in those products was protectively encapsulated in other materials and is not associated with the types ofinjuries alleged in the pending suits. Finally, in most of the depositions taken of plaintiffs to date in the litigation against the Company,plaintiffs have failed to specifically identify any Company products as the source of their asbestos exposure.

The majority of the asbestos complaints pending against the Company have been filed in New York. Almost all of the New Yorkcomplaints contain a standard claim for damages of $20 million or $25 million against the approximately 90 defendants, regardless ofthe individual plaintiff's alleged medical condition, and without specifically identifying any Company product as the source of plaintiff'sasbestos exposure.

At December 31, 2012, there are 18,302 pending asbestos personal injury claims filed against the Company. Of these cases, 17,813 arepending in the New York Supreme Court for New York County in New York State. The other claims, totaling 489, are filed in variouscounties in a number of state courts, and in certain Federal District Courts (including New York), and those complaints generally assertlesser amounts of damages than the New York State court cases or do not state any amount claimed.

As of December 31, 2012, the Company has obtained dismissal by stipulation, or summary judgment prior to trial, in 26,480 cases.

In view of the persistence of asbestos litigation nationwide, the Company expects to continue to receive additional claims. However,there have been developments during the past several years, both by certain state legislatures and by certain state courts, which couldfavorably affect the Company's ability to defend these asbestos claims in those jurisdictions. These developments include proceduralchanges, docketing changes, proof of damage requirements and other changes that require plaintiffs to follow specific procedures inbringing their claims and to show proof of damages before they can proceed with their claim. An example is the action taken by theNew York Supreme Court (a trial court), which is responsible for managing all asbestos cases pending within New York County in theState of New York. This Court issued an order in December 2002 that created a Deferred or Inactive Docket for all pending and futureasbestos claims filed by plaintiffs who cannot demonstrate that they have a malignant condition or discernible physical impairment, andan Active or In Extremis Docket for plaintiffs who are able to show such medical condition. As a result of this order, the majority of theasbestos cases filed against the Company in New York County have been moved to the Inactive Docket until such time as the plaintiffscan show that they have incurred a physical impairment. At December 31, 2012, the Company has been listed as a defendant in 651Active or In Extremis asbestos cases in New York County. The Court's Order has been challenged by some plaintiffs.

Except with regard to the legal costs in a few limited, exceptional cases, the Company's insurance carrier has paid all legal andsettlement costs and expenses to date related to the Company's U.S. asbestos cases. The Company has liability insurance coverage undervarious primary and excess policies that the Company believes will be available, if necessary, to substantially cover any liability thatmight ultimately be incurred on these claims.

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The Company intends to continue its practice of vigorously defending these claims and cases. It is not possible to predict the ultimateoutcome of asbestos-related lawsuits, claims and proceedings due to the unpredictable nature of personal injury litigation, and no lossprovision has been recorded in the Company's consolidated financial statements because a loss contingency is not deemed probable orestimable. Despite this uncertainty, and although results of operations and cash flows for a given period could be adversely affected byasbestos-related lawsuits, claims and proceedings, the Company does not expect that any costs that are reasonably possible to beincurred by the Company in connection with asbestos litigation would have a material adverse effect on the Company's financialcondition, 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 courseof business. In the opinion of management, all such matters are adequately covered by insurance or by established reserves, and, if notso covered, are without merit or are of such kind, or involve such amounts, as would not have a material adverse effect on the financialposition, 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 lossassociated with the event can be reasonably estimated. Insurance reserves have been estimated based primarily upon actuarialcalculations and reflect the undiscounted estimated liabilities for ultimate losses, including claims incurred but not reported. Inherent inthese estimates are assumptions that are based on the Company's history of claims and losses, a detailed analysis of existing claims withrespect 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 changewas determined. When a recognized liability is covered by third-party insurance, the Company records an insurance claim receivable toreflect the covered liability. Insurance claim receivables are included in Other receivables on the Company's Consolidated BalanceSheets. See Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements for the year endedDecember 31, 2012 for additional information on Accrued Insurance and Loss Reserves.

12. Capital Stock

The authorized capital stock of the Company consists of 150,000,000 shares of common stock and 4,000,000 shares of preferred stock,both having a par value of $1.25 per share. The preferred stock is issuable in series with terms as fixed by the Board of Directors (the"Board"). No preferred stock has been issued. Under the Company's Preferred Stock Purchase Rights Agreement (the "Agreement"), theBoard authorized and declared a dividend distribution of one right for each share of common stock outstanding on the record date. Therights may only be exercised if, among other things and with certain exceptions, a person or group has acquired 15% or more of theCompany's common stock without the prior approval of the Board. Each right entitles the holder to purchase 1/100th share of HarscoSeries A Junior Participating Cumulative Preferred Stock at an exercise price of $230. Once the rights become exercisable, the holder ofa right will be entitled, upon payment of the exercise price, to purchase a number of shares of common stock calculated to have a valueof two times the exercise price of the right. The rights expire on October 9, 2017, do not have voting power, and may be redeemed bythe Company at a price of $0.001 per right at any time until the 10th business day following public announcement that a person or grouphas accumulated 15% or more of the Company's common stock. The Agreement also includes an exchange feature. At December 31,2012 and 2011, 805,846 and 804,772 shares, respectively, of $1.25 par value preferred stock were reserved for issuance upon exercise ofthe rights.

The Board of Directors has authorized the repurchase of shares of common stock as follows:

Shares Authorizedto be Purchased

January 1

Additional SharesAuthorized for

PurchaseShares

Purchased

Remaining SharesAuthorized for

PurchaseDecember 31

2010 2,000,000 — — 2,000,0002011 2,000,000 — 286,577 1,713,4232012 1,713,423 — — 1,713,423

At December 31, 2012, 1,713,423 shares remained available for repurchase under the Company's share repurchase program. OnJanuary 28, 2013, the Board of Directors increased the number of shares available for repurchase under the Company's share repurchase

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program and extended the program for one additional year. As a result, the Company is currently authorized to repurchase up to2,000,000 shares through January 31, 2014. When and if appropriate, repurchases are made in open market transactions, depending onmarket conditions. Share repurchases may not occur and may be discontinued at any time.

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In addition to the above purchases,14,677, 28,503 and 38,909 shares were repurchased in 2012, 2011 and 2010, respectively, inconnection with the issuance of shares as a result of vested restricted stock units. In 2012, no shares were repurchased in connectionwith the issuance of shares as a result of stock option exercises. In 2011 and 2010, the Company repurchased 41,974 and 24,008 shares,respectively, in connection with the issuance of shares as a result of stock option exercises. In 2012, the Company repurchased 10,536shares in connection with the issuance of shares as a result of other stock grants. No such repurchases were made in 2011 or 2010. Thefollowing table summarizes the Company's common stock:

Common Stock

SharesIssued

TreasuryShares

OutstandingShares

Outstanding, January 1, 2010 111,387,185 31,034,126 80,353,059Stock Options Exercised 115,493 24,008 91,485Vested Restricted Stock Units 108,424 38,909 69,515Outstanding, December 31, 2010 111,611,102 31,097,043 80,514,059Stock Options Exercised 199,032 41,974 157,058Vested Restricted Stock Units 121,133 28,503 92,630Treasury Shares Purchased — 286,577 (286,577)Outstanding, December 31, 2011 111,931,267 31,454,097 80,477,170Stock Options Exercised 38,900 — 38,900Vested Restricted Stock Units 45,898 14,677 31,221Other Stock Grants 47,873 10,536 37,337

Outstanding, December 31, 2012 112,063,938 31,479,310 80,584,628

The following is a reconciliation of the average shares of common stock used to compute basic earnings per common share to the sharesused to compute diluted earnings per common share as shown in the Consolidated Statements of Operations:

(Amounts in thousands, except per share data) 2012 2011 2010

Income (loss) from continuing operations attributable to Harsco Corporationcommon stockholders $ (253,693) $ (9,447) $ 10,885

Weighted-average shares outstanding—basic 80,632 80,736 80,569Dilutive effect of stock-based compensation — — 192

Weighted-average shares outstanding—diluted 80,632 80,736 80,761Earnings (loss) from continuing operations per common share, attributable toHarsco Corporation common stockholders:

Basic $ (3.15) $ (0.12) $ 0.14

Diluted $ (3.15) $ (0.12) $ 0.13

The following average outstanding stock-based compensation units were not included in the computation of diluted earnings per sharebecause the effect was antidilutive:

(In thousands) 2012 2011 2010

Restricted stock units 148 64 9Stock options 389 755 —Stock appreciation rights 530 — —Other stock-based compensation units 317 554 —

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13. Stock-Based Compensation

The 1995 Executive Incentive Compensation Plan, as amended, authorizes the issuance of up to 8,000,000 shares of the Company'scommon stock for use in paying incentive compensation awards in the form of stock options or other equity awards such as restrictedstock, restricted stock units or stock appreciation rights. The 1995 Non-Employee Directors' Stock Plan authorizes the issuance of up to600,000 shares of the Company's common stock for equity awards. Both plans have been approved by the Company's stockholders. AtDecember 31, 2012, there were 1,165,744 and 186,190 shares available for granting equity awards under the 1995 Executive IncentiveCompensation Plan and the 1995 Non-Employee Directors' Stock Plan, respectively.

Restricted Stock UnitsThe Board approves the granting of performance-based restricted stock units as the long-term equity component of director, officer andcertain key employee compensation. The restricted stock units require no payment from the recipient and compensation cost ismeasured based on the market price on the grant date and is generally recorded over the vesting period. The vesting period for restrictedstock units granted to non-employee directors is one year, and each restricted stock unit is exchanged for a like number of shares ofCompany stock following the termination of the participant's service as a director. Generally, restricted stock units granted to officersand certain key employees prior to 2012 vest on a pro rata basis over a three-year period, and the specified retirement age is 62.Restricted stock units granted in March and May of 2012 "cliff" vest at the end of three years, and the specified retirement age is 62.Upon vesting, each restricted stock unit is exchanged for a like number of new shares of the Company's stock. Restricted stock units donot have an option for cash payment.

The following table summarizes restricted stock units issued and the compensation expense recorded for 2012, 2011 and 2010:

Stock-Based Compensation Expense

Expense

(Dollars in thousands, except per unit)Restricted

Stock UnitsFair Valueper Unit 2012 2011 2010

Directors:May 1, 2009 16,000 27.28 $ — $ — $ 145May 3, 2010 16,000 30.99 — 165 331May 2, 2011 20,192 34.79 234 468 —May 2, 2012 27,930 21.58 402 — —December 4, 2012 2,688 19.95 — — —

Employees:January 23, 2007 101,700 38.25 — — 41January 22, 2008 130,950 45.95 — 68 1,601January 27, 2009 106,625 25.15 43 614 667November 19, 2009 15,000 31.90 — 12 298January 25, 2010 1,000 31.49 1 10 20September 22, 2010 25,000 23.47 20 373 194April 26, 2011 3,750 32.10 44 29 —September 20, 2011 13,500 21.18 151 111 —January 23, 2012 30,000 17.81 168 — —March 16, 2012 44,268 21.39 130 — —May 4, 2012 56,233 17.34 213 — —September 10, 2012 5,985 19.05 11 — —November 16, 2012 5,000 16.45 3 — —

Total $ 1,420 $ 1,850 $ 3,297

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Restricted stock unit activity for 2012, 2011 and 2010 was as follows:

RestrictedStock Units

Weighted AverageGrant-DateFair Value

Nonvested at January 1, 2010 229,491 $ 34.45Granted 42,000 26.53Vested (124,424) 35.81Forfeited (6,532) 35.23Nonvested at December 31, 2010 140,535 30.83Granted 37,442 29.61Vested (113,136) 33.55Forfeited (2,200) 25.15Nonvested at December 31, 2011 62,641 25.39Granted 172,104 19.23Vested (67,861) 24.86Forfeited (25,411) 20.35

Nonvested at December 31, 2012 141,473 $ 19.19

At December 31, 2012, the total unrecognized compensation cost related to nonvested restricted stock units was $1.9 million, which willbe recognized over a weighted-average period of approximately two years.

Stock OptionsFrom time to time, the Company may grant incentive stock options and nonqualified stock options to officers, certain key employeesand non-employee directors under the two plans noted above. The stock options would generally vest three years from the date of grant,which is the date the Board of Directors approved the grants, and expire no later than ten years after the date of grant. The exercise priceof the stock would be fair value on the grant date. Upon exercise, a new share of Company stock is issued for each option.

Stock option activity for 2012, 2011 and 2010 was as follows:

SharesUnder Option

Weighted AverageExercise Price

AggregateIntrinsic Value(in millions)(a)

Outstanding, January 1, 2010 389,970 $ 15.66 $ 6.7Exercised (115,493) 13.77 —Expired (805) 16.33 —Outstanding, December 31, 2010 273,672 16.46 3.3Granted 617,500 31.75 —Exercised (199,032) 15.95 —Forfeited/Expired (30,300) 30.92 —Outstanding, December 31, 2011 661,840 30.22 0.2Exercised (38,900) 18.23 —Forfeited/Expired (294,940) 31.29 —

Outstanding, December 31, 2012 328,000 $ 30.67 $ 0.2(a) Intrinsic value is defined as the difference between the current market value and the exercise price, for those options where the market price exceeds the

exercise price.

In January 2011, 617,500 stock options were granted. The Company used a binomial lattice model to estimate the fair value of $10.90for this stock-based award. The fair value was estimated with the following assumptions: Dividend yield—2.5%; Volatility—40.6%;Risk-free interest rate—0.6%; and Expected life—seven years. These assumptions are based on multiple factors, including the historicalvolatility of the Company's stock price. The options vest three years from the grant date and expire seven years after the grant date. No

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compensation expense was recognized in 2012 for stock options due to forfeitures. Compensation expense recognized in 2011 for stockoptions totaled $2.0 million. No compensation expense was recognized in 2010.

At December 31, 2012, the total unrecognized compensation cost related to nonvested stock options was $1.1 million, which is expectedto be recognized over a period of approximately one year.

Net cash proceeds from the exercise of stock options totaled $0.7 million, $2.4 million and $1.0 million in 2012, 2011 and 2010,respectively.

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The total intrinsic value of options exercised during 2012, 2011 and 2010 was $0.1 million, $2.2 million and $1.7 million, respectively.

The following table summarizes information concerning outstanding and exercisable options at December 31, 2012:

Options Outstanding Options Exercisable

Range of ExercisablePrices Vested Unvested

Weighted AverageExercisePrice Per

Share

Weighted AverageRemainingContractual

Life inYears

NumberExercisable

Weighted AverageExercisePrice Per

Share

$16.96 - $16.96 24,000 — $ 16.96 0.33 24,000 $ 16.96$31.75 - $31.75 — 304,000 31.75 5.07 — —

24,000 304,000 $ 30.67 4.72 24,000 $ 16.96

At December 31, 2012, outstanding options, substantially all of which are expected to vest, have a weighted-average remainingcontractual life of 4.72 years and an aggregate intrinsic value of $0.2 million. Vested and currently exercisable options have a weighted-average remaining contractual life of 0.33 years and an aggregate intrinsic value of $0.2 million.

Weighted-average grant-date fair value of unvested options during the year ended December 31, 2012 was as follows:

Shares UnderOption

Weighted AverageGrant-Date Fair

Value

Outstanding, January 1, 2012 589,000 $ 10.90Forfeited (285,000) 10.90

Outstanding, December 31, 2012 304,000 $ 10.90

Stock Appreciation RightsDuring 2012, the Company issued Stock Appreciation Rights ("SARs") covering 318,452 shares in March, 345,502 shares in May and43,058 shares in September under the 1995 Executive Incentive Compensation Plan to officers and key executive employees.

The fair value of each SAR grant was estimated on the date of grant using a Black-Scholes pricing model with the followingassumptions:

March 2012 Grant May 2012 GrantSeptember 2012

Grant

Risk-free interest rate 1.56% 1.18% 1.00%Dividend yield 3.50% 4.20% 3.80%Expected life (years) 6.5 6.5 6.5Volatility 43.9% 44.0% 44.3%SAR grant price $ 23.73 $ 19.65 $ 21.37Fair value of SAR award $ 6.10 $ 4.77 $ 6.20

A summary of activity relating to SARs for the year ended December 31, 2012 was as follows:

SARs

Number of SharesWeighted Average

Exercise PriceAggregate IntrinsicValue (in millions)

Weighted AverageRemaining

Contractual Term(Years)

Outstanding, January 1, 2012 — $ — $ —Granted 707,012 21.23Forfeited/expired (181,725) 21.23

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Outstanding, December 31, 2012 525,287 $ 21.23 $ 1.2 9.3

No SARs are vested or exercisable at December 31, 2012.

Unrecognized compensation expense related to SARs not yet exercisable was $2.3 million at December 31, 2012. This cost is expectedto be recognized over a weighted average period of approximately 4.3 years.

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Other Stock GrantsDuring 2012, the Company issued 43,873 shares to its then Interim Chief Executive Officer as part of his compensation agreement. Inaddition, 4,000 shares were issued to other employees under incentive award programs. All shares vested immediately and were notsubject to any holding period restrictions. Fair value of the grants were based on the market price of Company stock at the grant date.Expense recognized in 2012 for these grants total $1.0 million.

There was no change, a $1.1 million increase and a $0.1 million decrease of excess tax benefits principally from restricted stock unitsrecognized in 2012, 2011 and 2010, respectively.

14. Financial Instruments

Off-Balance Sheet RiskAs collateral for the Company's performance and to insurers, the Company is contingently liable under standby letters of credit, bondsand bank guarantees in the amounts of $208.8 million and $273.6 million at December 31, 2012 and 2011, respectively. These standbyletters of credit, bonds and bank guarantees are generally in force for up to five years. Certain issues have no scheduled expiration date.The Company pays fees to various banks and insurance companies that range from 0.32% to 1.93% per annum of the instruments' facevalue. If the Company were required to obtain replacement standby letters of credit, bonds and bank guarantees at December 31, 2012for those currently outstanding, it is the Company's opinion that the replacement costs would be within the present fee structure.

The Company has currency exposures in approximately 50 countries. The Company's primary foreign currency exposures during 2012were in the European Economic and Monetary Union, the United Kingdom and Brazil.

Off-Balance Sheet Risk—Third-Party GuaranteesIn connection with the licensing of one of the Company's trade names and providing certain management services (the furnishing ofselected employees), the Company guarantees the debt of certain third parties related to its international operations. These guaranteesare provided to enable the third parties to obtain financing for their operations. The Company receives fees from these operations, whichare included as Service revenues in the Company's Consolidated Statements of Operations. The Company recorded revenue from theseentities of $1.3 million, $1.2 million and $1.9 million during 2012, 2011 and 2010, respectively. The guarantees are renewed on anannual basis and the Company would only be required to perform under the guarantees if the third parties default on their debt. Themaximum potential amount of future payments (undiscounted) related to these guarantees was $0.7 million and $1.6 million atDecember 31, 2012 and 2011, respectively. There is no recognition of this potential future payment in the consolidated financialstatements as the Company believes the potential for making these payments is remote. At December 31, 2012, there is one guaranteeoutstanding that was renewed in December 2012.

The Company provided an environmental indemnification for properties that were sold to a third-party in 2007. The maximum term ofthis guarantee is 20 years, and the Company would be required to perform under the guarantee only if an environmental matter isdiscovered on the properties. The Company is not aware of environmental issues related to these properties. There is no recognition ofthis potential future payment in the consolidated financial statements as the Company believes the potential for making this payment isremote.

The Company provided an environmental indemnification for property from a lease that terminated in 2006. The term of this guaranteeis indefinite, and the Company would be required to perform under the guarantee only if an environmental matter was discovered on theproperty relating to the time the Company leased the property. The Company is not aware of any environmental issues related to thisproperty. The maximum potential amount of future payments (undiscounted) related to this guarantee is estimated to be $3.0 million atboth December 31, 2012 and 2011. There is no recognition of this potential future payment in the consolidated financial statements asthe Company believes the potential for making this payment is remote.

The Company provides guarantees related to arrangements with certain customers that include joint and several liability for actions forwhich the Company may be partially at fault. The terms of these guarantees generally do not exceed four years, and the maximumamount of future payments (undiscounted) related to these guarantees is $3.0 million per occurrence. This amount represents theCompany's self-insured maximum limitation. There is no specific recognition of potential future payments in the consolidated financialstatements as the Company is not aware of any claims.

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Any liabilities related to the Company's obligation to stand ready to act on third-party guarantees are included in Other current liabilitiesor Other liabilities (as appropriate) on the Consolidated Balance Sheets. Any recognition of these liabilities did not have a materialimpact on the Company's financial condition or results of operations for 2012, 2011 or 2010.

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In the normal course of business, the Company provides legal indemnifications related primarily to the performance of its products andservices and patent and trademark infringement of its products and services sold. These indemnifications generally relate to theperformance (regarding function, not price) of the respective products or services and therefore no liability is recognized related to thefair value of such guarantees.

Derivative Instruments and Hedging ActivitiesThe Company uses derivative instruments, including foreign currency forward exchange contracts, commodity contracts and crosscurrency interest rate swaps, to manage certain foreign currency, commodity price and interest rate exposures. Derivative instrumentsare viewed as risk management tools by the Company and are not used for trading or speculative purposes.

All derivative instruments are recorded on the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives used tohedge foreign currency denominated balance sheet items are reported directly in earnings along with offsetting transaction gains andlosses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments orforecasted commodity purchases may be accounted for as cash flow hedges, as deemed appropriate and if the criteria for hedgeaccounting are met. Gains and losses on derivatives designated as cash flow hedges are deferred as a separate component of equity andreclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. Generally, atDecember 31, 2012, these deferred gains and losses will be reclassified to earnings over 10 to 15 years from the balance sheet date. Theineffective portion of all hedges, if any, is recognized currently in earnings.

The fair value of outstanding derivative contracts recorded as assets and liabilities on the Consolidated Balance Sheets at December 31,2012 and 2011 was as follows:

Asset Derivatives Liability Derivatives

(in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value

December 31, 2012Derivatives designated as hedging instruments:Cross currency interest rate swaps Other assets $ 39,058 Other liabilities $ 14,346

Derivatives not designated as hedging instruments:Foreign currency forward exchange contracts Other current assets $ 853 Other current liabilities $ 1,775

Asset Derivatives Liability Derivatives

(in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value

December 31, 2011Derivatives designated as hedging instruments:Foreign currency forward exchange contracts Other current assets $ 274 Other current liabilities $ —Cross currency interest rate swaps Other assets 44,636 Other liabilities 1,792Total derivatives designated as hedginginstruments $ 44,910 $ 1,792

Derivatives not designated as hedging instruments:Foreign currency forward exchange contracts Other current assets $ 2,912 Other current liabilities $ 1,207

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The effect of derivative instruments in the Consolidated Statements of Operations and the Consolidated Statements of ComprehensiveIncome during 2012, 2011 and 2010 was as follows:

Derivatives Designated as Hedging Instruments

(In thousands)

Amount ofGain (Loss)

Recognized inOther

ComprehensiveIncome

("OCI") onDerivative—Effective

Portion

Location of Gain(Loss) Reclassifiedfrom Accumulated

OCI intoIncome—Effective

Portion

Amount ofGain (Loss)Reclassified

fromAccumulated

OCI intoIncome—Effective

Portion

Location of Gain(Loss) Recognized

in Income onDerivative—Ineffective

Portionand Amount

Excluded fromEffectiveness

Testing

Amount ofGain (Loss)Recognizedin Income

onDerivative—Ineffective

Portion andAmount

Excludedfrom Effectiveness

Testing

Twelve Months Ended December 31, 2012:

Foreign currency forwardexchange contracts $ (152)

Cost of servicesand products

sold $ 270 $ —Cross currency interest rateswaps (4,748) —

Cost of servicesand products sold (13,384) (a)

$ (4,900) $ 270 $ (13,384)Twelve Months Ended December 31, 2011:Foreign currency forwardexchange contracts $ 887 $ 83 $ —Cross currency interest rateswaps 7,230 —

Cost of servicesand products sold 7,642 (a)

$ 8,117 $ 83 $ 7,642Twelve Months Ended December 31, 2010:Foreign currency forwardexchange contracts $ 32 $ — $ —

Commodity contracts 20

Cost of servicesand products

sold 20Cost of services

and products sold 10Cross currency interest rateswaps (1,119) —

Cost of servicesand products sold 21,734 (a)

$ (1,067) $ 20 $ 21,744(a) These gains (losses) offset foreign currency fluctuation effects on the debt principal.

Derivatives Not Designated as Hedging Instruments

Amount of Gain (Loss) Recognized in Income on Derivative forthe Twelve Months Ended December 31(a)

(In thousands)Location of Gain (Loss) Recognized

in Income on Derivative 2012 2011 2010

Foreign currency forward exchange contractsCost of services and products

sold $ (3,529) $ 7,238 $ 1,483(a) These gains (losses) offset amounts recognized in cost of service and products sold principally as a result of intercompany or third-party foreign currency

exposures.

Commodity DerivativesThe Company periodically uses derivative instruments to hedge cash flows associated with purchase or selling price exposure to certaincommodities. The Company's commodity derivative activities are subject to the management, direction and control of the Company'sRisk Management Committee, which approves the use of all commodity derivative instruments. There were no commodity derivativecontracts outstanding at December 31, 2012 and 2011.

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Foreign Currency Forward Exchange ContractsThe Company conducts business in multiple currencies and, accordingly, is subject to the inherent risks associated with foreignexchange rate movements. The financial position and results of operations of substantially all of the Company's foreign subsidiaries aremeasured using the local currency as the functional currency. Foreign currency-denominated assets and liabilities are translated intoU.S. dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at theaverage exchange rates during the respective periods. The aggregate effects of translating the balance sheets of these subsidiaries aredeferred and recorded in Accumulated other comprehensive loss, which is a separate component of equity.

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The Company uses derivative instruments to hedge cash flows related to foreign currency fluctuations. Foreign currency forwardexchange contracts outstanding are part of a worldwide program to minimize foreign currency exchange operating income and balancesheet exposure by offsetting foreign currency exposures of certain future payments between the Company and its various subsidiaries,suppliers or customers. The unsecured contracts are with major financial institutions. The Company may be exposed to credit loss in theevent of non-performance by the contract counterparties. The Company evaluates the creditworthiness of the counterparties and doesnot expect default by them. Foreign currency forward exchange contracts are used to hedge commitments, such as foreign currencydebt, 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 exchangecontracts in U.S. dollars at December 31, 2012 and 2011. The "Buy" amounts represent the U.S. dollar equivalent of commitments topurchase foreign currencies, and the "Sell" amounts represent the U.S. dollar equivalent of commitments to sell foreign currencies. Therecognized gains and losses offset amounts recognized in cost of services and products sold principally as a result of intercompany orthird-party foreign currency exposures.

Contracted Amounts of Foreign Currency Exchange Forward Contracts Outstanding at December 31, 2012:

(In thousands) TypeU.S. DollarEquivalent Maturity

RecognizedGain (Loss)

British pounds sterling Sell $ — $ —British pounds sterling Buy 6,141 January 2013 through February 2013 58Euros Sell 264,234 January 2013 through March 2013 (1,082)Euros Buy 116,618 January 2013 through February 2013 187Other currencies Sell 2,811 January 2013 through March 2013 (15)Other currencies Buy 44,291 January 2013 (71)

Total $ 434,095 $ (923)

Contracted Amounts of Foreign Currency Exchange Forward Contracts Outstanding at December 31, 2011:

(In thousands) TypeU.S. DollarEquivalent Maturity

RecognizedGain (Loss)

British pounds sterling Sell $ 18,350 January 2012 $ (20)British pounds sterling Buy 4,364 January 2012 (12)Euros Sell 178,889 January 2012 through October 2012 2,345Euros Buy 105,247 January 2012 through April 2012 (878)Other currencies Sell 2,957 January 2012 through March 2012 62Other currencies Buy 14,656 January 2012 235

Total $ 324,463 $ 1,732

In addition to foreign currency forward exchange contracts, the Company designates certain loans as hedges of net investments ininternational subsidiaries. The Company recorded pre-tax net losses of $5.3 million and pre-tax net gains of $6.3 million and $19.0million related to hedges of net investments during 2012, 2011 and 2010, respectively, in Accumulated other comprehensive loss.

Cross Currency Interest Rate SwapsThe Company uses cross currency interest rate swaps in conjunction with certain debt issuances in order to secure a fixed local currencyinterest rate. Under these cross currency interest rate swaps, the Company receives interest based on a fixed or floating U.S. dollar rateand pays interest on a fixed local currency rate based on the contractual amounts in dollars and the local currency, respectively. Thecross currency interest rate swaps are recorded on the Consolidated Balance Sheets at fair value, with changes in value attributed to theeffect of the swaps' interest spread recorded in Accumulated other comprehensive loss. Changes in value attributed to the effect offoreign currency fluctuations are recorded in the Consolidated Statements of Operations and offset currency fluctuation effects on thedebt principal. The following table indicates the contractual amounts of the Company's cross currency interest rate swaps:

ContractualAmounts Interest Rates

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(In millions) Receive Pay

Maturing 2018 $ 250.0 Fixed U.S. dollar rate Fixed euro rateMaturing 2020 220.0 Fixed U.S. dollar rate Fixed British pound sterling rateMaturing 2013 through 2017 4.8 Floating U.S. dollar rate Fixed rupee rate

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Fair Value of Derivative Assets and Liabilities and Other Financial InstrumentsFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between marketparticipants at the measurement date (an exit price). The Company utilizes market data or assumptions that the Company believesmarket participants would use in valuing the asset or liability, including assumptions about risk and the risks inherent in the inputs to thevaluation technique.

The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained fromindependent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions based on the bestinformation available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which givesthe highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority tounobservable 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, unrestrictedassets or liabilities.

• Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly orindirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assetsor 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 orother 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 inputthat is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to thefair 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 December 31, 2012 and 2011:

Level 2 Fair Value Measurements(In thousands)

December 312012

December 312011

AssetsForeign currency forward exchange contracts $ 853 $ 3,186Cross currency interest rate swaps 39,058 44,636

LiabilitiesForeign currency forward exchange contracts 1,775 1,207Cross currency interest rate swaps 14,346 1,792

The following table reconciles the beginning and ending balances for liabilities measured on a recurring basis using unobservable inputs(Level 3) for 2012 and 2011:

Level 3 Liabilities—Contingent Consideration for the Twelve Months Ended December 31(In thousands) 2012 2011

Balance at beginning of year $ — $ 3,872Fair value adjustments included in earnings — (3,966)Effect of exchange rate changes — 94

Balance at end of year $ — $ —

The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best availableinformation. 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. TheCompany is able to classify fair value balances based on the ability to observe those inputs. Commodity derivatives, foreign currencyforward exchange contracts and cross currency interest rate swaps are classified as Level 2 fair value based upon pricing models usingmarket-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 borrowingsapproximate fair value due to the short-term maturities of these assets and liabilities. At December 31, 2012 and 2011, the total fair

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value of long-term debt, including current maturities, was $1.0 billion and $935.1 million, respectively, compared to carrying value of$960.7 million and $857.4 million, respectively. Fair values for debt are based on quoted market prices (Level 1) for the same or similarissues or on the current rates offered to the Company for debt of the same remaining maturities.

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Concentrations of Credit RiskFinancial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cashequivalents and accounts receivable. The Company places its cash and cash equivalents with high-quality financial institutions and, bypolicy, limits the amount of credit exposure to any single institution.

Concentrations of credit risk with respect to accounts receivable are generally limited in the Harsco Infrastructure and Harsco IndustrialSegments due to the Company's large number of customers and their dispersion across different industries and geographies. However,the Company's Harsco Metals & Minerals Segment and, to a lesser extent, the Harsco Rail Segment have several large customersthroughout the world with significant accounts receivable balances. Consolidation in the global steel or rail industries could result in anincrease in concentration of credit risk for the Company.

The Company generally does not require collateral or other security to support customer receivables. If a receivable from one or more ofthe Company's larger customers becomes uncollectible, it could have a material effect on the Company's results of operations or cashflows.

15. Information by Segment and Geographic Area

The Company reports information about its operating segments using the "management approach," which is based on the waymanagement organizes and reports the segments within the enterprise for making operating decisions and assessing performance. TheCompany's reportable segments are identified based upon differences in products, services and markets served.

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

Harsco Metals & Minerals SegmentThese businesses provide on-site, outsourced services to steel mills and other metal producers such as aluminum and copper. Servicesinclude slag processing; semi-finished inventory management; material handling; scrap management; in-plant transportation; and avariety of other services. Other major products and services include minerals and recycling technologies; environmental solutions formetals and mining customers' waste streams; and granules for asphalt roofing shingles as well as abrasives for industrial surfacepreparation derived from coal slag. Major customers include steel mills and asphalt roofing manufacturers.

Harsco Infrastructure SegmentMajor services include project engineering and equipment installation, as well as the sale and rental of scaffolding, shoring and concreteforming systems for industrial maintenance and capital improvement projects, civil infrastructure projects, non-residential construction,and international multi-dwelling residential construction projects. Services are provided to industrial and petrochemical plants; theinfrastructure construction, repair and maintenance markets; commercial and industrial construction contractors; and public utilities.

Harsco Rail SegmentThis segment manufactures railway track maintenance equipment and provides track maintenance services. The major customersinclude private and government-owned railroads and urban mass transit systems worldwide.

Harsco Industrial SegmentMajor products include industrial grating; air-cooled heat exchangers; and boilers and water heaters. Major customers include industrialplants and the non-residential, commercial and public construction and retrofit markets; and the natural gas exploration and processingindustry.

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Other InformationThe measurement basis of segment profit or loss is operating income (loss). There are no significant inter-segment sales. Corporateassets include principally cash, prepaid taxes, fair value of derivative instruments and U.S. deferred income taxes. Countries withrevenues from unaffiliated customers and net property, plant and equipment of ten percent or more of the consolidated totals (in at leastone period presented) are as follows:

Information by Geographic Area (a)

Revenues from Unaffiliated Customers Property, Plant and Equipment, Net

Twelve Months Ended Balances at

December 31 December 31

(In thousands) 2012 2011 2010 2012 2011 2010

United States $ 1,108,051 $ 1,087,454 $ 1,010,290 $ 242,890 $ 276,966 $ 291,470United Kingdom 331,894 398,222 420,458 115,775 114,521 141,014All Other 1,606,073 1,817,064 1,607,930 907,560 882,997 934,489Totals includingCorporate $ 3,046,018 $ 3,302,740 $ 3,038,678 $ 1,266,225 $ 1,274,484 $ 1,366,973(a) Revenues are attributed to individual countries based on the location of the facility generating the revenue.

In 2012, 2011 and 2010, sales to one customer, ArcelorMittal, principally in the Harsco Metals & Minerals Segment, were $283.3million, $361.9 million and $359.0 million, respectively. For 2011 and 2010, these amounts represented more than 10% of theCompany's consolidated revenues. These revenues were provided under multiple long-term contracts at several mill sites. In addition,the Harsco Metals & Minerals Segment is dependent largely on the global steel industry, and in 2012, 2011 and 2010 there were twocustomers, including ArcelorMittal, that each provided in excess of 10% of this Segment's revenues under multiple long-term contractsat several mill sites. The loss of any one of these contracts would not have a material adverse impact upon the Company's financialposition or cash flows; however, it could have a material effect on quarterly or annual results of operations. Additionally, consolidationin the global steel industry has increased the Company's exposure to these customers. Should additional consolidations occur involvingsome of the steel industry's larger companies which are customers of the Company, it would result in an increase in concentration ofcredit risk for the Company.

In the fourth quarter of 2012, the Company recorded a non-cash goodwill impairment charge of $265.0 million related to the HarscoInfrastructure Segment. See Note 6, Goodwill and Other Intangibles, for additional disclosure regarding the goodwill impairmentcharge.

In the fourth quarter of 2011, the Company implemented the 2011/2012 Restructuring Program to further optimize rental assets andsales inventories in the Harsco Infrastructure Segment; reduce the number of administrative locations in the Harsco InfrastructureSegment and Harsco Metals & Minerals Segment; and reduce the global workforce in the Harsco Infrastructure and Harsco Metals &Minerals Segments. The Harsco Infrastructure Segment and Harsco Metals & Minerals Segment recorded pre-tax charges of $88.6million and $5.5 million respectively, for the 2011/2012 Restructuring Program in 2012. The Harsco Infrastructure Segment and HarscoMetals & Minerals Segment recorded pre-tax charges of $87.6 million and $12.8 million respectively, for the 2011/2012 RestructuringProgram in 2011.

In the fourth quarter of 2010, the Harsco Infrastructure Segment implemented the Fourth Quarter 2010 Harsco Infrastructure Program asa countermeasure to global economic and financial conditions that adversely affected the Company's end markets. This Segmentrecorded net pre-tax charges of $84.4 million related to this restructuring initiative. See Note 18, Restructuring Programs, for additionaldisclosure regarding these restructuring programs.

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Operating Information by Segment:

Twelve Months Ended

December 31

(In thousands) 2012 2011 2010

RevenuesHarsco Metals & Minerals $ 1,404,103 $ 1,588,302 $ 1,461,531Harsco Infrastructure 937,293 1,108,293 1,031,807Harsco Rail 352,036 300,029 313,262Harsco Industrial 352,586 306,116 231,898Corporate — — 180

Total Revenues $ 3,046,018 $ 3,302,740 $ 3,038,678

Operating Income (Loss)Harsco Metals & Minerals $ 85,523 $ 109,593 $ 117,915Harsco Infrastructure (368,657) (125,555) (145,346)Harsco Rail 56,079 58,746 66,124Harsco Industrial 60,160 50,656 42,871Corporate (7,895) (5,791) (3,133)

Total Operating Income (Loss) $ (174,790) $ 87,649 $ 78,431

Total AssetsHarsco Metals & Minerals $ 1,561,973 $ 1,537,538 $ 1,541,117Harsco Infrastructure 1,018,979 1,371,143 1,534,379Harsco Rail 188,348 213,410 208,338Harsco Industrial 81,035 80,784 58,918Corporate 125,634 136,002 126,468

Total Assets $ 2,975,969 $ 3,338,877 $ 3,469,220

Depreciation and AmortizationHarsco Metals & Minerals $ 163,137 $ 183,784 $ 180,306Harsco Infrastructure 89,814 107,621 114,861Harsco Rail 10,116 10,133 11,110Harsco Industrial 3,098 2,805 2,832Corporate 5,952 6,098 6,130

Total Depreciation and Amortization $ 272,117 $ 310,441 $ 315,239

Capital ExpendituresHarsco Metals & Minerals $ 189,358 $ 212,009 $ 123,153Harsco Infrastructure 63,137 88,456 54,858Harsco Rail 4,133 4,497 9,498Harsco Industrial 3,669 4,938 1,722Corporate 4,726 3,201 3,117

Total Capital Expenditures $ 265,023 $ 313,101 $ 192,348

Reconciliation of Segment Operating Income (Loss) to Consolidated Income From Continuing Operations Before Income Taxesand Equity Income:

Twelve Months Ended

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December 31

(In thousands) 2012 2011 2010

Segment operating income (loss) $ (166,895) $ 93,440 $ 81,564General Corporate expense (7,895) (5,791) (3,133)Operating income (loss) from continuing operations (174,790) 87,649 78,431Interest income 3,676 2,751 2,668Interest expense (47,381) (48,735) (60,623)Income (loss) from continuing operations before income taxes and equityincome $ (218,495) $ 41,665 $ 20,476

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Information about Products and Services:

Revenues from Unaffiliated Customers

Twelve Months Ended

December 31

(In thousands) 2012 2011 2010

Product GroupOutsourced, on-site services to steel mills and other metals producers andresource recovery technologies for the re-use of industrial waste stream by-products $ 1,333,248 $ 1,518,902 $ 1,393,794Engineered scaffolding, concrete forming and shoring, and other access-related services, rentals and sales 937,293 1,108,293 1,031,807Railway track maintenance services and equipment 352,036 300,029 313,262Air-cooled heat exchangers 175,896 142,960 112,170Industrial grating products 136,157 113,388 76,975Industrial abrasives and roofing granules 70,855 69,399 67,737Heat transfer products 40,533 49,769 42,753General Corporate — — 180

Consolidated Revenues $ 3,046,018 $ 3,302,740 $ 3,038,678

16. Other Expenses

During 2012, 2011 and 2010, the Company recorded pre-tax other expenses from continuing operations of $93.8 million, $102.7 millionand $86.5 million, respectively. The major components of this income statement category are as follows:

Other (Income) Expenses

(In thousands) 2012 2011 2010

Net gains $ (5,848) $ (6,162) $ (7,792)Contingent consideration adjustments — (3,966) (10,620)Employee termination benefits costs 31,158 36,174 24,816Costs to exit activities 38,626 10,007 34,384Product line rationalization 24,966 66,063 34,302Impaired asset write-downs 7,152 — 9,966Other (income) expense (2,278) 624 1,417

Total $ 93,776 $ 102,740 $ 86,473

Substantially all other expenses in 2012, 2011 and 2010 were incurred in conjunction with restructuring programs initiated within theHarsco Infrastructure Segment and the Harsco Metals & Minerals Segment in 2011 and the Harsco Infrastructure Segment in 2010. SeeNote 18, Restructuring Programs, for additional information on these programs.

Net GainsNet gains result from the sales of redundant properties (primarily land, buildings and related equipment) and non-core assets. In 2012,gains related to assets sold principally in the United States. In 2011, gains related to assets sold principally in the United Kingdom andthe United States. In 2010, gains related to assets sold principally in the United States and Western Europe.

Net Gains

(In thousands) 2012 2011 2010

Harsco Metals & Minerals Segment $ (2,449) $ (1,666) $ (3,942)

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Harsco Infrastructure Segment (2,198) (3,607) (3,253)Harsco Industrial Segment (1,089) (889) (597)Corporate (112) — —

Total $ (5,848) $ (6,162) $ (7,792)

Cash proceeds associated with these gains are included in proceeds from the sale of assets in the cash flows from investing activitiessection of the Consolidated Statements of Cash Flows.

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Contingent Consideration AdjustmentsCertain of the Company's acquisitions in prior years included contingent consideration features for which defined goals needed to bemet by the acquired business in order for payment of the consideration. Each quarter until settlement of these contingencies, theCompany assessed the likelihood that an acquired business would achieve the goals and the resulting fair value of the contingency. Inaccordance with accounting standards for business combinations, these adjustments were recognized in operating income (loss) fromcontinuing operations in the Consolidated Statements of Operations as a component of the other expenses line item. The Company'sassessment of these performance goals resulted in the following reductions to previously recognized contingent consideration liabilities:

Contingent Consideration Adjustments

(In thousands) 2012 2011 2010

Harsco Infrastructure Segment $ — $ (3,966) $ (10,620)

All contingent consideration liabilities have been settled and there was no recorded contingent consideration liability as ofDecember 31, 2012 and 2011.

Employee Termination Benefit CostsCosts and the related liabilities associated with involuntary termination costs associated with one-time benefit arrangements provided aspart of an exit or disposal activity are recognized by the Company when a formal plan for reorganization is approved at the appropriatelevel of management and communicated to the affected employees. Additionally, costs associated with ongoing benefit arrangements, orin certain countries where statutory requirements dictate a minimum required benefit, are recognized when they are probable andestimable.

The total amount of employee termination benefit costs incurred during 2012, 2011 and 2010 is presented in the table below. Theemployee termination benefit costs in 2012 related primarily to the 2011/2012 Restructuring Program and were primarily in WesternEurope, North America, the United Kingdom and the Asia-Pacific region. The employee termination benefits costs in 2011 relatedprimarily to the 2011/2012 Restructuring Program and were primarily in Western Europe and the United Kingdom. The employeetermination benefit costs in 2010 related primarily to the Fourth Quarter 2010 Harsco Infrastructure Program in addition to initiatives inthe Harsco Metals & Minerals Segment and were primarily in the United Kingdom, Western Europe and North America.

Employee Termination Benefit Costs

(In thousands) 2012 2011 2010

Harsco Metals & Minerals Segment $ 8,082 $ 18,533 $ 4,684Harsco Infrastructure Segment 17,291 16,546 19,068Harsco Rail Segment 245 296 578Harsco Industrial Segment 418 423 486Corporate 5,122 376 —

Total $ 31,158 $ 36,174 $ 24,816

Costs to Exit ActivitiesCosts associated with exit or disposal activities are recognized as follows:

• Costs to terminate a contract that is not a capital lease are recognized when an entity terminates the contract or when anentity ceases using the right conveyed by the contract. This includes the costs to terminate the contract before the end of itsterm or the costs that will continue to be incurred under the contract for its remaining term without economic benefit to theentity (e.g., lease run-out costs).

• Other costs associated with exit or disposal activities (e.g., costs to consolidate or close facilities and relocate equipment oremployees) are recognized and measured at their fair value in the period in which the liability is incurred.

In 2012, $38.6 million of exit costs were incurred, principally related to Western Europe, the United States and the United Kingdom.This consists primarily of branch structure reduction and office rationalization costs in the Harsco Infrastructure and Harsco Metals &Minerals Segments. Costs to exit activities included $10.9 million of gains from currency translation adjustments recognized inearnings. The currency translation adjustments are non-cash items recognized when the Company has substantially liquidated itsinvestment in a foreign entity. The Company exited certain countries and recognized such adjustment gains in conjunction with theCompany's 2011/2012 Restructuring Program.

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In 2011, $10.0 million of exit costs were incurred, principally related to the United States, the United Kingdom and Western Europe.This consists primarily of branch structure reduction and office rationalization costs in the Harsco Infrastructure and Harsco Metals &Minerals Segments.

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In 2010, $34.4 million of exit costs were incurred, principally related to relocation and lease run-out costs in the Harsco InfrastructureSegment in the United States, Western Europe and the United Kingdom. Costs to exit activities in 2010 included $8.3 million ofwithdrawal liabilities to exit certain multiemployer pension plans, based on the latest available information received from the planadministrators and trustees. These withdrawal liabilities were triggered as the Company has ceased, or expected to cease, contributing tomultiemployer plans for certain locations as part of the Fourth Quarter 2010 Harsco Infrastructure Program. A significant number ofunion employees in the United States are covered by multiemployer pension plans based on obligations arising from collectivebargaining agreements. These plans provide retirement benefits to all plan participants based on their service to contributing employers,including union employees of the Company. These retirement benefits are paid from assets held in trust for that purpose. The Companyis only one of several employers participating in each of these plans. A withdrawal liability is recorded when it is probable that aliability exists and the amount can be reasonably estimated from the financial information that is provided by the third-party trustees ofthe plans pursuant to the Employee Retirement Income Security Act. At times, this financial information may be dated or insufficient toreasonably estimate an accrual at the balance sheet date when the Company has determined it is probable that a liability exists.

Costs to Exit Activities

(In thousands) 2012 2011 2010

Harsco Metals & Minerals Segment $ 3,627 $ 1,313 $ 930Harsco Infrastructure Segment 34,820 8,694 33,458Harsco Industrial Segment — — (4)Corporate 179 — —

Total $ 38,626 $ 10,007 $ 34,384

Product Line RationalizationThe product line rationalization charges of $25.0 million, $66.1 million and $34.3 million in 2012, 2011 and 2010, respectively,represent a write-down of certain rental assets and sale inventories in the Harsco Infrastructure Segment that were discontinued as partof the 2011/2012 Restructuring Program and the Fourth Quarter 2010 Harsco Infrastructure Program, to streamline and optimizeproduct offerings. These charges are net of estimated salvage value. Salvage values were based on estimates of proceeds to be realizedthrough the sale of this inventory outside the normal course of business.

The 2011/2012 Restructuring Program and the Fourth Quarter 2010 Harsco Infrastructure Program should result in a reduction in thenumber of product lines offered and is an extension of the Harsco Infrastructure Segment initiative to optimize the operating footprintand reduce the number of operating locations. By streamlining the product offerings, the Company anticipates it should improvecustomer service to allow for more efficient operations, thereby reducing selling, engineering, logistics, warehousing and maintenancecosts; minimizing future capital expenditures due to reduced product line offerings; improving capacity utilization; and eliminatingunnecessary redundancy in its product offering. Customers will be serviced using available alternative systems that should ensure noreduction in the rental capacity of the Company.

Impaired Asset Write-downsImpaired asset write-downs are measured as the amount by which the carrying amount of assets exceeds their fair value. Fair value isestimated based upon the expected future realizable cash flows including anticipated selling prices. Non-cash impaired asset write-downs are included in other, net on the Consolidated Statements of Cash Flows as adjustments to reconcile net income (loss) to net cashprovided by operating activities.

There were impaired asset write-downs recorded of $7.2 million in 2012. In 2012, impaired asset write-downs were recorded in theHarsco Metals & Minerals Segment principally in the Asia-Pacific region resulting from exiting an underperforming contract. Therewere no impaired asset write-downs recorded in 2011. There were impaired asset write-downs recorded of $10.0 million in 2010. In2010, impaired asset write-downs of were recorded principally in the Harsco Infrastructure Segment in the United Kingdom and in theHarsco Metals & Minerals Segment in the United States. The Harsco Infrastructure Segment write-downs in 2010 related primarily toadjustments to realizable value for two lines of business upon transfer to assets held for sale in other current assets on the ConsolidatedBalance Sheets in conjunction with the Fourth Quarter 2010 Harsco Infrastructure Program.

Impaired Asset Write-downs

(In thousands) 2012 2011 2010

Harsco Metals & Minerals Segment $ 7,152 $ — $ 1,028Harsco Infrastructure Segment — — 8,938

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Total $ 7,152 $ — $ 9,966

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17. Components of Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss is included on the Consolidated Statements of Stockholders' Equity. The components ofAccumulated other comprehensive loss, net of the effect of income taxes, are as follows:

Accumulated Other Comprehensive Loss—Net of Tax

December 31

(In thousands) 2012 2011

Cumulative foreign exchange translation adjustments $ 62,308 $ 51,313Effective portion of cash flow hedges (8,139) (3,807)Cumulative unrecognized actuarial losses on pension obligations (465,286) (411,641)Unrealized loss on marketable securities (51) (56)

Accumulated other comprehensive loss $ (411,168) $ (364,191)

18. Restructuring Programs

The Company instituted restructuring programs in 2010 and 2011 as detailed below. The overall objective of the programs was tobalance short-term profitability goals with long-term strategies to establish platforms upon which the affected businesses could growwith reduced fixed investment while generating annual operating expense savings. The programs were instituted in response to thecontinuing impact of global financial and economic uncertainty on the Company’s end markets, particularly in the Company’s HarscoInfrastructure Segment.

Within the Harsco Infrastructure Segment, these restructuring programs are part of an ongoing strategy to improve organizationalefficiency and enhance profitability and stockholder value. The strategy includes optimizing the Segment as a more streamlined,efficient, cost-effective, disciplined and market-focused global platform.

Restructuring costs incurred in these programs were recorded in the Other expenses line of the Consolidated Statements of Operations.

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2011/2012 Restructuring ProgramUnder the 2011/2012 Restructuring Program, the Company optimized rental assets and sale inventories by removing non-core assetsunder an expanded product rationalization and branch structure reduction program undertaken in its Harsco Infrastructure Segment; andreduced the global workforce in the Harsco Infrastructure and Harsco Metals & Minerals Segments. As previously disclosed in theCompany’s Annual Report on Form 10-K for the Year Ended December 31, 2011, the Company incurred approximately $101 million inpre-tax charges under this program in 2011. Benefits under this program, in the form of reduced costs, were $55 million in 2012 and areexpected to be more than $63 million when fully annualized in 2013. Certain benefits under this program were accelerated and resultedin greater than initially anticipated cost savings in 2012.

The restructuring accrual for the 2011/2012 Restructuring Program at December 31, 2012 and the activity for the year then ended are asfollows:

(In thousands)

AccrualDecember 31

2011

AdditionalExpenses

Incurred (a)

Non-CashCharges /

AdjustmentsCash

Payments

ForeignCurrency

Translation

RemainingAccrual

December 312012

Harsco Infrastructure SegmentEmployee termination benefit costs $ 14,500 $ 17,495 $ (326) $ (25,265) $ 595 $ 6,999Cost to exit activities 2,833 45,927 215 (39,997) 22 9,000

Total Harsco Infrastructure Segment (b) 17,333 63,422 (111) (65,262) 617 15,999

Harsco Metals & Minerals SegmentEmployee termination benefit costs 12,737 4,974 — (11,017) (200) 6,494Cost to exit activities — 499 — — — 499Total Harsco Metals & Minerals Segment 12,737 5,473 — (11,017) (200) 6,993

Harsco Rail SegmentEmployee termination benefit costs 50 67 — (117) — —

Harsco CorporateEmployee termination benefit costs 351 371 — (709) — 13

Total $ 30,471 $ 69,333 $ (111) $ (77,105) $ 417 $ 23,005(a) Includes principally the recognition of additional expenses due to timing considerations under U.S. GAAP, as well as adjustments to previously recorded

restructuring charges resulting from changes in facts and circumstances in the implementation of these activities.(b) The table does not include $25.0 million of non-cash product rationalization expense or $17.7 million of proceeds from asset sales under the 2011/2012

Restructuring Program for this Segment as these items did not impact the restructuring accrual during 2012.

Cash payments related to the remaining accrual at December 31, 2012 are expected to be paid principally throughout 2013 withapproximately $7 million of exit activity costs for lease terminations expected to be paid over the remaining life of the leases.

Fourth Quarter 2010 Harsco Infrastructure ProgramUnder the Fourth Quarter 2010 Harsco Infrastructure Program, the Harsco Infrastructure Segment reduced its branch structure;consolidated and/or closed administrative office locations; reduced its global workforce; and rationalized its product lines.

The restructuring accrual for the Fourth Quarter 2010 Harsco Infrastructure Program at December 31, 2012 and the activity for the yearthen ended are as follows:

(In thousands)

AccrualDecember 31

2011

Adjustmentsto Previously

RecordedRestructuring

Charges (a)Cash

Payments

ForeignCurrency

Translation

RemainingAccrual

December 312012

Harsco Infrastructure Segment

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Cost to exit activities $ 11,929 $ (805) $ (4,178) $ (155) $ 6,791Employee termination benefit costs 211 (208) — (3) —Other 7 (5) — (2) —

Total $ 12,147 $ (1,018) $ (4,178) $ (160) $ 6,791(a) Adjustments to previously recorded restructuring charges resulted from changes in facts and circumstances in the implementation of these activities.

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Approximately $6 million of the December 31, 2012 balance relates to payment of multiemployer pension plan withdrawal liabilitiesand is expected to be paid through 2023 under contractual payment terms with the related plan administrators. The remaining balanceprimarily relates to costs for lease terminations that are expected to be paid over the remaining life of the leases.

Prior Restructuring ProgramsOther restructuring actions were undertaken in 2010, in addition to the Fourth Quarter 2010 Harsco Infrastructure Program describedabove, to reduce the Company’s cost structure.

The restructuring accrual for those prior restructuring programs at December 31, 2012 and the activity for the year then ended are asfollows:

(In thousands)

AccrualDecember 31

2011

Adjustmentsto Previously

RecordedRestructuring

Charges (a)Cash

Payments

ForeignCurrency

Translation

RemainingAccrual

December 312012

Harsco Metals & Minerals SegmentEmployee termination benefit costs $ 1,280 $ (1,263) $ (43) $ 26 $ —Cost to exit activities 727 — (124) (13) 590

Total $ 2,007 $ (1,263) $ (167) $ 13 $ 590

(a) Adjustments to previously recorded restructuring charges resulted from changes in facts and circumstances in the implementation of these activities.

Cash payments related to the remaining accrual at December 31, 2012 are expected to be paid in 2013.

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Two-Year Summary of Quarterly Results (Unaudited)(In millions, except per share amounts)

2012Quarterly First Second Third FourthRevenues $ 752.3 $ 770.6 $ 756.8 $ 766.3Gross profit (a) 158.7 185.8 176.8 169.5Net income (loss) attributable to HarscoCorporation (29.4) (d) 12.7 (d) 26.4 (d) (264.4) (d)(e)

Basic earnings (loss) per share attributable toHarsco Corporation common stockholders:

Continuing operations $ (0.36) (d) $ 0.16 (d) $ 0.32 (d) $ (3.27) (d)(e)

Discontinued operations (b) (0.01) — — —Basic earnings (loss) per shareattributable to Harsco Corporationcommon stockholders $ (0.36) (f) $ 0.16 $ 0.33 (f) $ (3.28) (f)

Diluted earnings (loss) per share attributableto Harsco Corporation common stockholders:

Continuing operations $ (0.36) $ 0.16 $ 0.32 $ (3.27) (e)

Discontinued operations (b) (0.01) — — —Diluted earnings (loss) per shareattributable to Harsco Corporationcommon stockholders $ (0.36) (f) $ 0.16 $ 0.33 (f) $ (3.28) (f)

2011Quarterly First Second Third FourthRevenues $ 779.1 $ 875.1 $ 855.9 $ 792.7Gross profit (a) 168.6 207.9 184.5 171.1Net income (loss) attributable to HarscoCorporation 11.4 37.7 31.8 (92.5) (c)

Basic earnings (loss) per share attributable toHarsco Corporation common stockholders:

Continuing operations $ 0.15 $ 0.47 $ 0.40 $ (1.14) (c)

Discontinued operations (b) (0.01) (0.01) (0.01) —Basic earnings (loss) per shareattributable to Harsco Corporationcommon stockholders $ 0.14 $ 0.47 (f) $ 0.39 $ (1.15) (f)

Diluted earnings (loss) per share attributableto Harsco Corporation common stockholders:

Continuing operations $ 0.15 $ 0.47 $ 0.40 $ (1.14) (c)

Discontinued operations (b) (0.01) (0.01) (0.01) —Diluted earnings (loss) per shareattributable to Harsco Corporationcommon stockholders $ 0.14 $ 0.47 (f) $ 0.39 $ (1.15) (f)

(a) Gross profit is defined as Revenues less costs and expenses associated directly with or allocated to products sold or services rendered.(b) Discontinued operations related principally to the Gas Technologies Segment which was sold in the fourth quarter of 2007.(c) In the fourth quarter of 2011, the Company incurred a $100.8 million pre-tax restructuring charge, or $1.05 per basic and diluted share, to address continuing

uncertainty in global financial and economic markets. Additionally in the fourth quarter of 2011, the Company incurred a $36.8 non-cash tax charge againstU.K. deferred tax assets, or $0.45 per basic and diluted share, due to a multi-year cumulative loss position in the Company's U.K. Infrastructure operations.

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(d) During 2012, the Company incurred an additional $94.5 million of pre-tax restructuring charges, or $1.06 per basic and diluted share, related to the 2011/2012Restructuring Program. During the first, second, third and fourth quarters of 2012 there were $35.4 million, $29.7 million, $8.5 million and $20.9 million ofpre-tax restructuring charges incurred, respectively.

(e) In the fourth quarter of 2012, the Company incurred a $265.0 million, pre-tax goodwill impairment charge, or $3.29 per basic and diluted share. Please refer toNote 6, Goodwill and Other Intangible Assets.

(f) Does not total due to rounding.

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Common Stock Price and Dividend Information(Unaudited)

Market Price Per Share

High LowDividends Declared

Per Share

2012First quarter $ 24.48 $ 19.80 $ 0.205Second quarter 23.86 18.57 0.205Third quarter 22.45 19.35 0.205Fourth quarter 23.54 18.40 0.205

2011First quarter $ 36.63 $ 28.45 $ 0.205Second quarter 36.78 29.46 0.205Third quarter 34.07 18.85 0.205Fourth quarter 24.96 17.77 0.205

Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Based on the evaluation required by Securities Exchange Act Rules 13a-15(b) and 15d-15(b), the Company's management, including theChief Executive Officer and Interim Chief Financial Officer, conducted an evaluation of the effectiveness of disclosure controls andprocedures, as defined in Securities Exchange Act Rules 13a-15(3) and 15d-15(e), at December 31, 2012. Based on that evaluation, theChief Executive Officer and Interim Chief Financial Officer concluded that the disclosure controls and procedures were effective. Therehave been no changes in internal control over financial reporting that have materially affected, or are reasonably likely to materiallyaffect, internal control over financial reporting during the fourth quarter of 2012.

Management's Report on Internal Controls Over Financial Reporting is included in Part II, Item 8, "Financial Statements andSupplementary Data." The effectiveness of the Company's internal control over financial reporting at December 31, 2012 has beenaudited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in the Report of IndependentRegistered Public Accounting Firm appearing in Part II, Item 8, "Financial Statements and Supplementary Data," which expresses anunqualified opinion on the effectiveness of the Company's internal control over financial reporting at December 31, 2012.

Item 9B. Other Information.

None.

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PART III

Item 10. Directors, Executive Officers and Corporate Governance.

The information regarding executive officers of the Company required by this Item is set forth as a Supplementary Item, titled"Executive Officers of the Registrant," at the end of Part I of this Annual Report on Form 10-K (pursuant to Instruction 3 to Item 401(b)of Regulation S-K). The other information required by this Item is incorporated herein by reference from the disclosures that will beincluded under the sections entitled "Corporate Governance," "Nominees for Director," "The Nominating Process," "Report of the AuditCommittee" and "Section 16(a) Beneficial Ownership Reporting Compliance" of the Company's Definitive Proxy Statement for its 2013Annual Meeting of Stockholders (the "2013 Proxy Statement"), which will be filed pursuant to SEC Regulation 14A not later than 120days after the end of the Company's fiscal year ended December 31, 2012.

The Company's Code of Conduct (the "Code"), which applies to all officers, directors and employees of the Company, may be found onthe Company's Internet website, www.harsco.com. The Company intends to disclose on its website any amendments to the Code or anywaiver from a provision of the Code granted to an officer or director of the Company. The Code is available in print, without charge, toany person who requests it. To request a copy of the Code please contact the Company's Senior Director—Corporate Communicationsat (717) 763-7064.

Item 11. Executive Compensation.

The information regarding compensation of executive officers and directors required by this Item is incorporated herein by referencefrom the disclosures that will be included under the sections entitled "Executive Compensation," "Compensation Discussion andAnalysis" and "Non-Employee Director Compensation" of the 2013 Proxy Statement. The other information required by this Item isincorporated herein by reference from the disclosures that will be included under the sections entitled "Compensation CommitteeInterlocks and Insider Participation" and "Compensation Committee Report" of the 2013 Proxy Statement.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information regarding security ownership of certain beneficial owners and management required by this Item is incorporated hereinby reference from the disclosures that will be included under the section entitled "Share Ownership of Directors, Management andCertain Beneficial Owners" of the 2013 Proxy Statement.

Equity compensation plan information is incorporated herein by reference from the disclosures that will be included under the sectionentitled "Proposal 4: Approval of the 2013 Equity and Incentive Compensation Plan information (As of December 31, 2012)" of the2013 Proxy Statement.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The information regarding certain relationships and related transactions required by this Item is incorporated herein by reference fromthe disclosures that will be included under the section entitled "Transactions with Related Persons" of the 2013 Proxy Statement. The

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information regarding director independence required by this Item is incorporated herein by reference from the disclosures that will beincluded under the section entitled "Corporate Governance" of the 2013 Proxy Statement.

Item 14. Principal Accounting Fees and Services.

The information regarding principal accounting fees and services required by this Item is incorporated herein by reference from thedisclosures that will be included under the sections entitled "Report of the Audit Committee" and "Fees Billed by the IndependentAuditors for Audit and Non-Audit Services" of the 2013 Proxy Statement.

97

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Table of Contents

PART IV

Item 15. Exhibits and Financial Statement Schedules.

(a) 1. The Index to Consolidated Financial Statements and Supplementary Data is located under Part II, Item 8, "FinancialStatements and Supplementary Data."

Page

Index to Consolidated Financial Statements and Supplementary Data 45

2. The following financial statement schedule should be read in conjunction with the Consolidated Financial Statements underPart II, Item 8, "Financial Statements and Supplementary Data":

Page

Schedule II—Valuation and Qualifying Accounts for the years 2012, 2011 and 2010 99

Financial statement schedules other than that listed above are omitted because the required information is not applicable, or because theinformation required is included in the consolidated financial statements.

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SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS

Continuing Operations

(In thousands)

COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E

Additions Additions (Deductions)

Description

Balance atBeginning of

Period

Charged toCost andExpenses

Due toCurrency

TranslationAdjustments Other

Balance at Endof Period

For the year 2012:Allowance for Doubtful Accounts $ 17,829 $ 11,266 $ 166 $ (12,008) (a) $ 17,253Deferred Tax Assets—ValuationAllowance $ 99,617 $ 18,552 $ 3,449 $ 4,914 $ 126,532

For the year 2011:Allowance for Doubtful Accounts $ 20,283 $ 7,880 $ (677) $ (9,657) (a) $ 17,829Deferred Tax Assets—ValuationAllowance $ 29,469 $ 47,575 (b) $ (312) $ 22,885 (c) $ 99,617

For the year 2010:Allowance for Doubtful Accounts $ 24,495 $ 9,962 $ (336) $ (13,838) (a) $ 20,283Deferred Tax Assets—ValuationAllowance $ 22,744 $ 4,754 $ (347) $ 2,318 $ 29,469

(a) Includes principally the utilization of previously reserved amounts.(b) Includes principally a valuation allowance recorded to fully offset the U.K. operations' net deferred tax assets primarily related to U.K. pension

liabilities.(c) Includes principally a valuation allowance recorded on other comprehensive income (loss) activity related to U.K. pension.

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Listing of Exhibits Filed with Form 10-K

ExhibitNumber Description of Global Exhibit

3(a) Restated Certificate of Incorporation as amended April 24, 1990 (incorporated by reference to the Company's AnnualReport on Form 10-K for the period ended December 31, 1990, Commission File Number 001-03970).

3(b) Certificate of Amendment of Restated Certificate of Incorporation filed June 3, 1997 (incorporated by reference to theCompany's Annual Report on Form 10-K for the period ended December 31, 1999, Commission FileNumber 001-03970).

3(c) Certificate of Designation filed September 25, 1997 (incorporated by reference to the Company's Annual Report onForm 10-K for the period ended December 31, 1997, Commission File Number 001-03970).

3(d) By-laws as amended July 30, 2012 (incorporated by reference to the Company's Quarterly Report on Form 10-Q forthe period ended September 30, 2012, Commission File Number 001-03970).

3(e) Certificate of Amendment of Restated Certificate of Incorporation filed April 26, 2005 (incorporated by reference toAppendix A pages A-1 through A-2 to the Company's Proxy Statement dated March 22, 2005, Commission FileNumber 001-03970).

4(a) Harsco Corporation Rights Agreement dated as of September 25, 2007, with Chase Mellon Shareholder ServicesL.L.C. (incorporated by reference to the Company's Registration Statement on Form 8-A dated September 26, 2007,Commission File Number 001-03970).

4(b) Preferred Stock Purchase Rights Agreement (incorporated by reference to Registration Statement on Form 8-A datedOctober 2, 1987, Commission File Number 001-03970).

4(c) Rights Agreement dated September 25, 2007 (incorporated by reference to the Company's Current Report onForm 8-K dated September 26, 2007, Commission File Number 001-03970).

4(d) Debt and Equity Securities (incorporated by reference to the Company's Registration Statement on Form S-3 datedDecember 15, 1994, Registration No. 33-56885).

4(e) (i) Indenture, dated as of May 1, 1985, by and between Harsco Corporation and The Chase Manhattan Bank (NationalAssociation), as trustee (incorporated by reference to the Company's Current Report on Form 8-K dated September 8,2003, Commission File Number 001-03970).

4(e) (ii) First Supplemental Indenture, dated as of April 12, 1995, by and among Harsco Corporation, The Chase ManhattanBank (National Association), as resigning trustee, and Chemical Bank, as successor trustee (incorporated by referenceto the Company's Current Report on Form 8-K dated September 8, 2003, Commission File Number 001-03970).

4(e) (iii) Second Supplemental Indenture, dated as of September 12, 2003, by and between Harsco Corporation and J.P.Morgan Chase Bank, as trustee (incorporated by reference to the Company's Quarterly Report on Form 10-Q for theperiod ended September 30, 2003, Commission File Number 001-03970).

4(f) Form of 5.125% Global Senior Note due September 15, 2013 (incorporated by reference to the Company's CurrentReport on Form 8-K dated September 11, 2003, Commission File Number 001-03970).

4(g) (i) Indenture, dated as of May 15, 2008, by and between Harsco Corporation and the Bank of New York, as trustee(incorporated by reference to the Company's Current Report on Form 8-K dated May 20, 2008, Commission FileNumber 001-03970).

4(g) (ii) Supplemental Indenture, dated as of May 15, 2008, by and between Harsco Corporation and the Bank of New York,as trust (incorporated by reference to the Company's Current Report on Form 8-K dated May 20, 2008, CommissionFile Number 001-03970).

4(g) (iii) Form of Global Security representing Harsco Corporation's 5.75% Senior Notes due 2018 (incorporated by referenceto the Company's Current Report on Form 8-K dated May 20, 2008, Commission File Number 001-03970).

4(h) (i) Indenture, dated as of September 20, 2010, by and between Harsco Corporation and Wells Fargo Bank, NationalAssociation, as trustee (incorporated by reference to the Company's Quarterly Report on Form 10-Q for the periodended September 30, 2010, Commission File Number 001-03970).

4(h) (ii) First Supplemental Indenture, dated as of September 20, 2010, by and between Harsco Corporation and Wells FargoBank, National Association, as trustee (incorporated by reference to the Company's Quarterly Report on Form 10-Qfor the period ended September 30, 2010, Commission File Number 001-03970).

4(h) (iii) Form of 2.700% Senior Notes due 2015 (incorporated by reference to the Company's Quarterly Report on Form 10-Qfor the period ended September 30, 2010, Commission File Number 001-03970).

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ExhibitNumber Description of Global Exhibit

Material Contracts—Credit and Underwriting Agreements10(a) Commercial Paper Dealer Agreement dated September 24, 2003, between ING Belgium SA/NV and Harsco

Finance B.V. (incorporated by reference to the Company's Annual Report on Form 10-K for the period endedDecember 31, 2003, Commission File Number 001-03970).

10(a)(i) Commercial Paper Dealer Agreement dated September 24, 2003, between ING Belgium SA/NV and HarscoFinance B.V.—Supplement No. 1 to the Dealer Agreement (incorporated by reference to the Company's CurrentReport on Form 8-K dated November 10, 2005, Commission File Number 001-03970).

10(b) Commercial Paper Payment Agency Agreement Dated October 1, 2000, between Salomon Smith Barney Inc. andHarsco Corporation (incorporated by reference to the Company's Annual Report on Form 10-K for the period endedDecember 31, 2000, Commission File Number 001-03970).

10(d) Issuing and Paying Agency Agreement, Dated October 12, 1994, between Morgan Guaranty Trust Company of NewYork and Harsco Corporation (incorporated by reference to the Company's Annual Report on Form 10-K for the periodended December 31, 1994, Commission File Number 001-03970).

10(v) Amended and Restated Five-Year Credit Agreement, dated March 2, 2012, among the Company, the lenders namedtherein, Citibank, N.A., as administrative agent, RBS Securities Inc., as syndication agent, and the Bank of Tokyo-Mitsubishi UFJ, Ltd., HSBC Bank USA, National Association, ING Bank N.V., Dublin Branch, JPMorgan ChaseBank, N.A. and Lloyds TSB Bank PLC, as documentation agents (incorporated by reference to the Company's CurrentReport on Form 8-K dated March 7, 2012, Commission File No. 001-03970).

Material Contracts—Management Contracts and Compensatory Plans10(c) Form of Change in Control Severance Agreement (incorporated by reference to the Company's Annual Report on

Form 10-K for the period ended December 31, 2010, Commission File Number 001-03970).10(e) Harsco Corporation Supplemental Retirement Benefit Plan as amended and restated January 1, 2009 (incorporated by

reference to the Company's Annual Report on Form 10-K, for the period ended December 31, 2008, Commission FileNumber 001-03970).

10(f) Trust Agreement between Harsco Corporation and Dauphin Deposit Bank and Trust Company dated July 1, 1987relating to the Supplemental Retirement Benefit Plan (incorporated by reference to the Company's Annual Report onForm 10-K for the period ended December 31, 1987, Commission File Number 001-03970).

10(g) Harsco Corporation Supplemental Executive Retirement Plan as amended (incorporated by reference to the Company'sAnnual Report on Form 10-K for the period ended December 31, 1991, Commission File Number 001-03970).

10(h) Trust Agreement between Harsco Corporation and Dauphin Deposit Bank and Trust Company dated November 22,1988 relating to the Supplemental Executive Retirement Plan (incorporated by reference to the Company's AnnualReport on Form 10-K for the period ended December 31, 1988, Commission File Number 001-03970).

10(i) (i) Harsco Corporation 1995 Executive Incentive Compensation Plan as Amended and Restated (incorporated byreference to Proxy Statement dated March 23, 2004 on Exhibit B pages B-1 through B15, Commission FileNumber 001-03970).

10(i) (ii) Amendment No. 1 to the Harsco Corporation 1995 Executive Incentive Compensation Plan (incorporated by referenceto the Company's Annual Report on Form 10-K for the period ended December 31, 2008, Commission FileNumber 001-03970).

10(i) (iii) Harsco Corporation 1995 Executive Incentive Compensation Plan, as Amended and Restated effective March 12, 2012(incorporated by reference to the Company's Current Report on Form 8-K dated March 13, 2012, Commission File No.001-03970).

10(j) Authorization, Terms and Conditions of the Annual Incentive Awards, as Amended and Restated April 27, 2004, underthe 1995 Executive Incentive Compensation Plan (incorporated by reference to the Company's Current Report onForm 8-K dated March 23, 2006, Commission File Number 001-03970).

10(k) Authorization, Terms and Conditions of Other Performance Awards under the Harsco Corporation 1995 ExecutiveIncentive Compensation Plan (as amended and restated) (incorporated by reference to the Company's Current Reporton Form 8-K dated March 22, 2007, Commission File Number 001-03970).

10(l) Special Supplemental Retirement Benefit Agreement for D. C. Hathaway (incorporated by reference to the Company'sAnnual Report on Form 10-K for the period ended December 31, 1988, Commission File Number 001-03970).

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10(m) Harsco Corporation Form of Restricted Stock Units Agreement (Directors) (incorporated by reference to theCompany's Current Report on Form 8-K dated April 26, 2005, Commission File Number 001-03970).

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ExhibitNumber Description of Global Exhibit

10(o) Harsco Corporation Deferred Compensation Plan for Non-Employee Directors (as Amended and Restated as ofDecember 31, 2008) (incorporated by reference to the Company's Annual Report on Form 10-K for the period endedDecember 31, 2008, Commission File Number 001-03970).

10(p) (i) Harsco Corporation 1995 Non-Employee Directors' Stock Plan as Amended and Restated at January 27, 2004(incorporated by reference to Proxy Statement dated March 23, 2004 on Exhibit A, pages A-1 through A-9,Commission File Number 001-03970).

10(p) (ii) Amendment No. 1 to the Harsco Corporation 1995 Non-Employee Directors' Stock Plan (incorporated by reference tothe Company's Annual Report on Form 10-K for the period ended December 31, 2008, Commission FileNumber 001-03970).

10(q) Restricted Stock Units Agreement for International Employees (incorporated by reference to the Company's AnnualReport on Form 10-K for the period ended December 31, 2007, Commission File Number 001-03970).

10(r) Settlement and Consulting Agreement (incorporated by reference to the Company's Quarterly Report on Form 10-Q forthe period ended March 31, 2003, Commission File Number 001-03970).

10(s) Restricted Stock Units Agreement (incorporated by reference to the Company's Current Report on Form 8-K datedJanuary 23, 2007, Commission File Number 001-03970).

10(t) Harsco Non-Qualified Retirement Savings & Investment Plan Part B—Amendment and Restatement as of January 1,2009 (incorporated by reference to the Company's Annual Report on Form 10-K for the period ended December 31,2008, Commission File Number 001-03970).

10(u) Stock Option Contract (incorporated by reference to the Company's Current Report on Form 8-K dated January 31,2011, Commission File Number 001-03970).

10(w) Notification Letter to Henry W. Knueppel, dated March 7, 2012 (incorporated by reference to the Company's QuarterlyReport on Form 10-Q for the period ended March 31, 2012, Commission File Number 001-03970).

10(x) Separation and Release Agreement, dated March 9, 2012, between the Company and Salvatore D. Fazzolari(incorporated by reference to the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2012,Commission File Number 001-03970).

10(y) Notification Letter to Patrick Decker dated July 28, 2012 (incorporated by reference to the Company's QuarterlyReport on Form 10-Q for the period ended June 30, 2012, Commission File Number 001-03970).

10(z) Separation Agreement, dated as of December 5, 2012, by and between the Company and Stephen J. Schnoor(incorporated by reference to the Company's Current Report on Form 8-K dated December 11, 2012, Commission FileNumber 001-03970).

10(aa) Release Agreement, dated as of December 5, 2012, by and between the Company and Stephen J. Schnoor(incorporated by reference to the Company's Current Report on Form 8-K dated December 11, 2012, Commission FileNumber 001-03970).

Director Indemnity Agreements10(n) A. J. Sordoni, III (incorporated by reference to the Company's Annual Report on Form 10-K for the period ended

December 31, 1989, same as shown for J.J. Burdge, Commission File Number 001-03970)." R. C. Wilburn (incorporated by reference to the Company's Annual Report on Form 10-K for the period ended

December 31, 1989, same as shown for J.J. Burdge, Commission File Number 001-03970)." K. G. Eddy (incorporated by reference to the Company's Current Report on Form 8-K dated August 27, 2004,

Commission File Number 001-03970)." T. D. Growcock (incorporated by reference to the Company's Current Report on Form 8-K dated August 27, 2004,

same as shown for K.G. Eddy, Commission File Number 001-03970)." H.W. Knueppel (incorporated by reference to the Company's Current Report on Form 8-K dated August 27, 2004,

same as shown for K.G. Eddy, Commission File Number 001-03970)." S.E. Graham (incorporated by reference to the Company's Current Report on Form 8-K dated August 27, 2004, same

as shown for K.G. Eddy, Commission File Number 001-03970)." D.C. Everitt (incorporated by reference to the Company's Current Report on Form 8-K dated August 27, 2004, same as

shown for K.G. Eddy, Commission File Number 001-03970).

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" J.M. Loree (incorporated by reference to the Company's Current Report on Form 8-K dated August 27, 2004, same asshown for K.G. Eddy, Commission File Number 001-03970).

" J.F. Earl (incorporated by reference to the Company's Current Report on Form 8-K dated August 27, 2004, same asshown for K.G. Eddy, Commission File Number 001-03970).

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ExhibitNumber Description of Global Exhibit

12 Computation of Ratios of Earnings to Fixed Charges.21 Subsidiaries of the Registrant.23 Consent of Independent Registered Public Accounting Firm.

31(a) Certification Pursuant to Rule 13a-14(a) and 15d-14(a) as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Actof 2002 (Chief Executive Officer).

31(b) Certification Pursuant to Rule 13a-14(a) and 15d-14(a) as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Actof 2002 (Chief Financial Officer).

32 Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of2002 (Chief Executive Officer and Chief Financial Officer).

101 The following financial statements from Harsco Corporation's Annual Report on Form 10-K for the year endedDecember 31, 2012, filed with the Securities and Exchange Commission on February 26, 2013, formatted in XBRL(eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements ofOperations; (iii) the Consolidated Statements of Cash Flows; (iv) the Consolidated Statements of Changes in Equity;(v) the Consolidated Statements of Comprehensive Income (Loss) and (vi) the Notes to Consolidated FinancialStatements.

Exhibits other than those listed above are omitted for the reason that they are either not applicable or not material.

103

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused thisreport to be signed on its behalf by the undersigned, thereunto duly authorized.

HARSCO CORPORATION(Registrant)

DATE February 26, 2013 /s/ BARRY E. MALAMUDBarry E. MalamudVice President, Corporate Controller and Interim Chief FinancialOfficer(Principal Financial and Accounting Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following personson behalf of the registrant and in the capacities and on the dates indicated.

Signature Capacity Date

/s/ PATRICK K. DECKERPresident, Chief Executive Officer and Director

(Principal Executive Officer) February 26, 2013(Patrick K. Decker)

/s/ BARRY E. MALAMUD

Vice President, Corporate Controller and InterimChief Financial Officer

(Principal Financial and Accounting Officer) February 26, 2013(Barry E. Malamud)/s/ JAMES F. EARL Director February 26, 2013

(James F. Earl)/s/ KATHY G. EDDY Director February 26, 2013

(Kathy G. Eddy)/s/ DAVID C. EVERITT Director February 26, 2013

(David C. Everitt)/s/ STUART E. GRAHAM Director February 26, 2013

(Stuart E. Graham)/s/ TERRY D. GROWCOCK Director February 26, 2013

(Terry D. Growcock)/s/ HENRY W. KNUEPPEL Non-Executive Chairman and Director February 26, 2013

(Henry W. Knueppel)/s/ JAMES M. LOREE Director February 26, 2013

(James M. Loree)/s/ ANDREW J. SORDONI, III Director February 26, 2013

(Andrew J. Sordoni, III)/s/ DR. ROBERT C. WILBURN Director February 26, 2013

(Dr. Robert C. Wilburn)

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Exhibit 12

HARSCO CORPORATIONComputation of Ratios of Earnings to Fixed Charges

YEARS ENDED DECEMBER 31(In thousands) 2012 2011 2010 2009 2008Pre-tax income from continuing operations attributableto Harsco shareholders (a) $ (218,442) (b) $ 40,401 $ 15,161 $ 152,347 $ 337,443Add: Consolidated Fixed Charges computed below 80,073 86,608 97,334 95,180 120,709Net adjustments for unconsolidated entities (256) (464) (214) (94) (417)Net adjustments for capitalized interest 128 165 125 (572) (277)

Consolidated Earnings Available for Fixed Charges (c) $ (138,497) (b) $ 126,710 $ 112,406 $ 246,861 $ 457,458

Consolidated Fixed Charges:Interest expense per financial statements (d) $ 47,381 $ 48,735 $ 60,623 $ 62,746 $ 73,160Interest expense capitalized 476 250 254 947 552Portion of rentals (1/3) representing a reasonableapproximation of the interest factor 32,216 37,623 36,457 31,487 46,997

Consolidated Fixed Charges $ 80,073 $ 86,608 $ 97,334 $ 95,180 $ 120,709

Consolidated Ratio of Earnings to Fixed Charges (1.73) (b) 1.46 1.15 2.59 3.79

(a) On January 1, 2009, the Company adopted changes issued by the Financial Accounting Standards Board related toconsolidation accounting and reporting. These changes, among others, require that minority interests be renamednoncontrolling interests and that a company present a consolidated net income measure that includes the amount attributable tosuch noncontrolling interests for all periods presented. For the computation above, income attributable to noncontrollinginterests have been excluded from pre-tax income.

(b) In the fourth quarter of 2012, the Company incurred a $265.0 million, pre-tax goodwill impairment charge, or $3.29 per basicand diluted share. Please refer to Note 6, Goodwill and Other Intangible Assets to the Company's consolidated financialstatements, under Part II, Item 8, "Financial Statements and Supplementary Data."

(c) Does not include interest related to uncertain tax position obligations.(d) Includes amortization of debt discount.

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HARSCO CORPORATION Exhibit 21Subsidiaries of Registrant

Subsidiary Country of IncorporationOwnershipPercentage

Harsco Metals Argentina S.A. Argentina 100%Harsco Infrastructure (Gladstone) Pty. Ltd. Australia 100%Harsco Infrastructure (Hunter Valley) Pty. Ltd. Australia 100%Harsco Infrastructure (NSW) Pty. Ltd. Australia 100%Harsco Infrastructure Pty. Ltd. Australia 100%Harsco (Australia) Pty. Limited Australia 100%Harsco Industrial Air-X-Changers Pty. Ltd. Australia 80%Harsco Infrastructure Australia Pty. Ltd. Australia 100%Harsco Metals Australia Holding Investment Co. Pty. Ltd. Australia 100%Harsco Metals Australia Pty. Ltd. Australia 100%Harsco Rail Pty. Ltd. Australia 100%Harsco Infrastructure (Western Australia) Pty. Ltd. Australia 100%Harsco Infrastructure Austria GmbH Austria 100%Harsco Minerals Austria GmbH Austria 100%Harsco Metals AluServ Middle East W.L.L. Bahrain 65%Harsco Belgium S.P.R.L. Belgium 100%Harsco Infrastructure Industrial Services S.A. Belgium 100%Harsco Metals Belgium S.A. Belgium 100%Harsco Metals Emirates Partnership Belgium 65%Harsco Rail Emirates Maatschap/Societe de Droit Commun Belgium 100%Harsco Brazil Investments BVBA Belgium 100%Harsco Chile Investments BVBA Belgium 100%Harsco (Bermuda) Limited Bermuda 100%Harsco do Brasil Participacoes e Servicos Siderurgicos Ltda. Brazil 99.99%Harsco Metals Limitada Brazil 100%Harsco Minerais Limitada Brazil 100%Harsco Infraestructura Colombia Ltd. British Virgin Islands 100%Harsco Infrastructure Trademarks and Intellectual Property(SouthAmerica) Ltd. British Virgin Islands 100%Harsco Canada Corporation Societe Harsco Canada Canada 100%Harsco Canada General Partner Limited Canada 100%Harsco Canada Limited Partnership Canada 100%Harsco Nova Scotia Holding Corporation Canada 100%Harsco Infrastructure (Guernsey) Ltd. Channel Islands-Guernsey 100%Harsco Infrastructure (Channel Islands) Ltd. Channel Islands-Jersey 100%SGB Overseas Limited Channel Islands-Jersey 100%Harsco Infraestructura Chile Ltda. Chile 100%Harsco Metals Chile S.A. Chile 100%Harsco Infrastructure Zhejiang Co., Ltd. China 70%Harsco Metals (Ningbo) Co. Ltd. China 56%

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Harsco Metals Tangshan Co. Ltd. China 100%Harsco Metals Zhejiang Co. Ltd. China 80%JiangSu Harsco Industrial Grating Company Limited China 70%Shanxi TISCO-Harsco Technology Co., Ltd. China 60%Harsco APAC Rail Machinery (Beijing) Co., Ltd. China 100%Harsco Infrastructure Equipment Leasing (Beijing) Co. Ltd. China 100%

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HARSCO CORPORATION Exhibit 21Subsidiaries of Registrant

Subsidiary Country of IncorporationOwnershipPercentage

Harsco Technology China Co., Ltd. China 100%Harsco Industrial Grating China Holding Company Limited China 70%General Corporate Services S.A. Costa Rica 100%Harsco Infraestructura Costa Rica S.A. Costa Rica 100%Harsco Infrastructure CZ s.r.o Czech Republic 100%Harsco Metals Czech s.r.o. Czech Republic 65%Harsco Metals CZ s.r.o Czech Republic 100%Harsco Infrastructure Danmark A/S Denmark 100%Hunnebeck Middle East FZE Dubai 100%Harsco Infrastructure for Scaffolding and Formwork S.A.E. Egypt 98.85%Harsco Metals Egypt L.L.C. Egypt 100%Heckett Bahna Co. For Industrial Operations S.A.E. Egypt 65%Heckett MultiServ Bahna S.A.E. Egypt 65%Slag Processing Company Egypt (SLAR) S.A.E. Egypt 60%Ginebra S.A. de C.V. El Salvador 100%Harsco Infraestructura El Salvador, S.A. de C.V. El Salvador 100%MultiServ Oy Finland 100%Harsco Infrastructure France S.A.S. France 100%Harsco Metals BC Nord S.A.S. France 100%Harsco Metals Evulca Sud S.A.S. France 100%Harsco Metals France S.A.S. France 100%Harsco Metals Industries S.A.S. France 100%Harsco Metals Logistique et Services Specialises S.A.S. France 100%Harsco Metals Mill Services S.A.S. France 100%Harsco Metals Solomat Industrie S.A.S. France 100%Harsco Metals Sud S.A.S. France 100%Harsco Minerals France S.A.S. France 100%Harsco France S.A.S. France 100%Harsco Infrastructure Deutschland GmbH Germany 100%Harsco Infrastructure Industrial Services GmbH Germany 100%Harsco Infrastructure Services GmbH Germany 100%Harsco Minerals Deutschland GmbH Germany 100%Harsco Rail Europe GmbH Germany 100%Harsco (Gibraltar) Holding Limited Gibraltar 100%Alexandros International Ltd Greece 100%Harsco Infraestructura Guatemala, S.A. Guatemala 100%Harsco Metals Guatemala S.A. Guatemala 100%Harsco China Holding Company Limited Hong Kong 100%Harsco Infrastructure Magyarorszag K.f.t. Hungary 100%Harsco India Metals Private limited India 99.99%

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Harsco India Private Ltd. India 84.63%Harsco India Services Private Ltd. India 100%Harsco Infrastructure Italia S.p.A. Italy 100%Harsco Metals Italia S.R.L. Italy 100%Ilserv S.R.L. Italy 65%

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HARSCO CORPORATION Exhibit 21Subsidiaries of Registrant

Subsidiary Country of IncorporationOwnershipPercentage

Harsco Metals Nord Italia S.R.L. Italy 100%Harsco Infrastructure Baltics S.I.A. Latvia 100%Harsco Interamerica Ltd S.a.r.l. Luxembourg 100%Harsco Luxembourg S.a.r.l Luxembourg 100%Harsco Metals Luxembourg S.A. Luxembourg 100%Harsco Metals Luxequip S.A. Luxembourg 100%Excell Americas Holdings Ltd S.a.r.L. Luxembourg 100%Harsco Americas Investments S.a.r.l. Luxembourg 100%Harsco Infrastructure Malaysia Sdn. Bhd. Malaysia 100%Harsco Industrial IKG de Mexico, S.A. de C.V. Mexico 100%Harsco Infrastructura Mexico S.A. de C.V. Mexico 100%Harsco Metals de Mexico S.A. de C.V. Mexico 100%Irving, S.A. de C.V. Mexico 100%Harsco Asia Investment B.V. Netherlands 100%Harsco Asia China Investment B.V. Netherlands 100%Harsco Asia Pacific Investment B.V. Netherlands 100%GasServ (Netherlands) VII B.V. Netherlands 100%Harsco (Mexico) Holdings B.V. Netherlands 100%Harsco Infrastructure B.V. Netherlands 100%Harsco Infrastructure Construction Services B.V. Netherlands 100%Harsco Infrastructure Industrial Services B.V. Netherlands 100%Harsco Infrastructure Logistic Services B.V. Netherlands 100%Harsco International Finance B.V. Netherlands 100%Harsco Investments Europe B.V. Netherlands 100%Harsco Metals Holland B.V. Netherlands 100%Harsco Metals Oostelijk Staal International B.V. Netherlands 100%Harsco Metals Transport B.V. Netherlands 100%Harsco Minerals Europe B.V. Netherlands 100%Harsco Nederland Slag B.V. Netherlands 100%Heckett MultiServ China B.V. Netherlands 100%Heckett MultiServ Far East B.V. Netherlands 100%MultiServ International B.V. Netherlands 100%Slag Reductie (Pacific) B.V. Netherlands 100%Slag Reductie Nederland B.V. Netherlands 100%Harsco (Peru) Holdings B.V. Netherlands 100%Harsco Europa B.V. Netherlands 100%Harsco Finance B.V. Netherlands 100%Harsco Metals SteelServ Limited New Zealand 50%Harsco Infrastructure Norge A.S. Norway 100%Harsco Metals Norway A.S. Norway 100%

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Financo S.A. Panama 100%Harsco Infraestructura Panama S.A. Panama 100%Patent Panama S.A. Panama 100%Representaciones Arcal S.A. Panama 100%Harsco Infraestructura Peru S.A. Peru 100%

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HARSCO CORPORATION Exhibit 21Subsidiaries of Registrant

Subsidiary Country of IncorporationOwnershipPercentage

Harsco Metals Peru S.A. Peru 100%Harsco Infrastructure Polska SP Z.O.O. Poland 100%Harsco Metals Polska SP Z.O.O. Poland 100%Harsco Infrastructure Portugal Ltda. Portugal 100%Harsco Metals CTS Prestacao de Servicos Tecnicos e Aluguer deEquipamentos LDA Unipessoal Portugal 100%Harsco Infrastructure Puerto Rico Corp. Puerto Rico 100%Harsco Al Darwish United W.L.L. Qatar 49%Harsco Infrastructure Romania S.R.L. Romania 100%Harsco Metals Romania S.R.L. Romania 100%Harsco Infrastructure RUS O.O.O. Russia 100%Harsco Baroom Ltd. Saudi Arabia 51%Harsco Metals Saudi Arabia Ltd. Saudi Arabia 55%Harsco Metals D.O.O. Smederevo Serbia 100%Harsco Infrastructure Singapore Pte. Ltd. Singapore 100%Harsco Infrastructure Slovensko s.r.o. Slovak Republic 100%Harsco Metals Slovensko s.r.o. Slovak Republic 100%Harsco Minerali d.o.o. Slovenia 100%Harsco Infrastructure South Africa (Pty.) Ltd. South Africa 100%Harsco Metals RSA Africa (Pty.) Ltd. South Africa 100%Harsco Metals South Africa (Pty.) Ltd. South Africa 100%Harsco Metals SRH Mill Services (Pty.) Ltd. South Africa 100%Harsco Metals SteelServ (Pty.) Ltd. South Africa 100%Harsco Metals Ilanga Pty. Ltd. South Africa 100%Harsco Metals Gesmafesa S.A. Spain 100%Harsco Metals Iberica S.A. Spain 100%Harsco Metals Intermetal S.A. Spain 100%Harsco Metals Lycrete S.A. Spain 100%Harsco Metals Reclamet S.A. Spain 100%Excell Africa Holdings, Ltd. St. Kitts & Nevis 100%Harsco Infrastructure Sverige A.B. Sweden 100%Harsco Metals Sweden A.B. Sweden 100%Harsco Metals (Thailand) Company Ltd. Thailand 100%Harsco Sun Demiryolu Ekipmanlari Uretim Ve Ticaret Limited Sirketi Turkey 51%Harsco Infrastructure West Indies Limited Trinidad & Tobago 100%Faber Prest Limited U.K. 100%Fourninezero Ltd. U.K. 100%Harsco (U.K.) Limited U.K. 100%Harsco (UK) Group Ltd U.K. 100%Harsco (UK) Holdings Ltd U.K. 100%

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Harsco (York Place) Limited U.K. 100%Harsco Fairerways Limited Partnership U.K. 100%Harsco Fairestways Limited Partnership U.K. 100%Harsco Fairways Partnership U.K. 100%

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HARSCO CORPORATION Exhibit 21Subsidiaries of Registrant

Subsidiary Country of IncorporationOwnershipPercentage

Harsco Higherlands Limited Partnership U.K. 100%Harsco Highestlands Limited Partnership U.K. 100%Harsco Infrastructure Group Ltd. U.K. 100%Harsco Infrastructure Middle East Ltd. U.K. 100%Harsco Infrastructure Services Ltd. U.K. 100%Harsco Investment Ltd. U.K. 100%Harsco Leatherhead Limited U.K. 100%Harsco Metals 385 plc U.K. 100%Harsco Metals Group Limited U.K. 100%Harsco Metals Holdings Limited U.K. 100%Harsco Mole Valley Limited U.K. 100%Harsco Rail Limited U.K. 100%Harsco Surrey Limited U.K. 100%MultiServ Investment Limited U.K. 100%SGB Investments Ltd. U.K. 100%Short Bros (Plant) Ltd. U.K. 100%Harsco Infrastructure Holding Ltd. U.K. 100%Harsco Global Sourcing Limited U.K. 100%Harsco Environmental Services Limited U.K. 100%Harsco Defense Holding, LLC U.S.A. 100%Harsco Engineering (California), Inc. U.S.A. 100%Harsco Engineering LLC U.S.A. 100%Harsco Holdings, Inc. U.S.A. 100%Harsco Infrastructure Holdings, Inc. U.S.A. 100%Harsco Metals ARI LLC U.S.A. 100%Harsco Metals BRI LLC U.S.A. 100%Harsco Metals ECR LLC U.S.A. 100%Harsco Metals GLRS LLC U.S.A. 100%Harsco Metals Holding LLC U.S.A. 100%Harsco Metals Intermetal LLC U.S.A. 100%Harsco Metals Investment LLC U.S.A. 100%Harsco Metals Operations LLC U.S.A. 100%Harsco Metals SRI LLC U.S.A. 100%Harsco Metals VB LLC U.S.A. 100%Harsco Minerals Briquetting LLC U.S.A. 100%Harsco Minerals KY LLC U.S.A. 100%Harsco Minerals PA LLC U.S.A. 100%Harsco Minerals Technologies LLC U.S.A. 100%Harsco Minnesota Finance, Inc. U.S.A. 100%Harsco Minnesota LLC U.S.A. 100%

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Harsco Technologies LLC U.S.A. 100%Harsco Services Group LLC U.S.A. 100%Harsco Infrastructure Ukraine L.L.C. Ukraine 100%Harsco Metals Ukraine L.L.C. Ukraine 100%Harsco Corporation FZE United Arab Emirates 100%

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Hunnebeck Emirates L.L.C. United Arab Emirates 49%Quebeisi SGB L.L.C. United Arab Emirates 49%

Companies in which Harsco Corporation does not exert management control are not consolidated. These companies are listed below asunconsolidated entities.

Company Name Country of IncorporationOwnershipPercentage

Phooltas Harsco Rail Solutions Private Limited India 40%P.T. Purna Baja Heckett Indonesia 40%

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Exhibit 23

Consent of Independent Registered Public Accounting Firm

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-13175,333-13173, 333-59832, 333-70710 and 333-114958) and on Form S-3 (No. 333-169375) of Harsco Corporation of ourreport dated February 26, 2013 relating to the consolidated financial statements, financial statement schedule, and theeffectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

Philadelphia, PennsylvaniaFebruary 26, 2013

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Exhibit 31(a)

HARSCO CORPORATIONCERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Patrick K. Decker, certify that:

1. I have reviewed this annual report on Form 10-K of Harsco Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material factnecessary to make the statements made, in light of the circumstances under which such statements were made, not misleadingwith respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in allmaterial respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periodspresented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls andprocedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (asdefined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designedunder our supervision, to ensure that material information relating to the registrant, including its consolidatedsubsidiaries, is made known to us by others within those entities, particularly during the period in which this report isbeing prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to bedesigned under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report ourconclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered bythis report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during theregistrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that hasmaterially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control overfinancial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or personsperforming the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financialreporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize andreport financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in theregistrant's internal control over financial reporting.

February 26, 2013

/s/ PATRICK K. DECKERPatrick K. DeckerChief Executive Officer

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Exhibit 31(b)

HARSCO CORPORATIONCERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Barry E. Malamud, certify that:

1. I have reviewed this annual report on Form 10-K of Harsco Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material factnecessary to make the statements made, in light of the circumstances under which such statements were made, not misleadingwith respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in allmaterial respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periodspresented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls andprocedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (asdefined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designedunder our supervision, to ensure that material information relating to the registrant, including its consolidatedsubsidiaries, is made known to us by others within those entities, particularly during the period in which this report isbeing prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to bedesigned under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report ourconclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered bythis report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during theregistrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that hasmaterially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control overfinancial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or personsperforming the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financialreporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize andreport financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in theregistrant's internal control over financial reporting.

February 26, 2013

/s/ BARRY E. MALAMUDBarry E. MalamudInterim Chief Financial Officer

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Exhibit 32

HARSCO CORPORATIONCERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Harsco Corporation (the "Company") on Form 10-K for the period ending December 31,2012, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we certify, pursuant to 18 U.S.C.Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of our knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results ofoperations of the Company.

February 26, 2013

/s/ PATRICK K. DECKERPatrick K. DeckerChief Executive Officer

/s/ BARRY E. MALAMUDBarry E. MalamudInterim Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Harsco Corporation and will be retainedby Harsco Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

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12 Months EndedCapital Stock (Tables) Dec. 31, 2012Equity [Abstract]Schedule of Share Repurchases The Board of Directors has authorized the repurchase of shares of common stock as follows:

SharesAuthorized

to bePurchasedJanuary 1

AdditionalShares

Authorizedfor

PurchaseShares

Purchased

RemainingShares

Authorizedfor

PurchaseDecember 31

2010 2,000,000 — — 2,000,0002011 2,000,000 — 286,577 1,713,4232012 1,713,423 — — 1,713,423

Schedule of Common StockOutstanding Roll Forward

The following table summarizes the Company's common stock:

Common Stock

SharesIssued

TreasuryShares

OutstandingShares

Outstanding, January 1, 2010 111,387,185 31,034,126 80,353,059Stock Options Exercised 115,493 24,008 91,485Vested Restricted Stock Units 108,424 38,909 69,515Outstanding, December 31, 2010 111,611,102 31,097,043 80,514,059Stock Options Exercised 199,032 41,974 157,058Vested Restricted Stock Units 121,133 28,503 92,630Treasury Shares Purchased — 286,577 (286,577)Outstanding, December 31, 2011 111,931,267 31,454,097 80,477,170Stock Options Exercised 38,900 — 38,900Vested Restricted Stock Units 45,898 14,677 31,221Other Stock Grants 47,873 10,536 37,337

Outstanding, December 31, 2012 112,063,938 31,479,310 80,584,628

Schedule of Earnings Per Share,Basic and Diluted

The following is a reconciliation of the average shares of common stock used to compute basicearnings per common share to the shares used to compute diluted earnings per common shareas shown in the Consolidated Statements of Operations:

(Amounts in thousands, except per share data) 2012 2011 2010

Income (loss) from continuing operationsattributable to Harsco Corporation commonstockholders $ (253,693) $ (9,447) $ 10,885

Weighted-average shares outstanding—basic 80,632 80,736 80,569Dilutive effect of stock-based compensation — — 192

Weighted-average shares outstanding—diluted 80,632 80,736 80,761Earnings (loss) from continuing operations percommon share, attributable to Harsco Corporationcommon stockholders:

Basic $ (3.15) $ (0.12) $ 0.14

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Diluted $ (3.15) $ (0.12) $ 0.13

Schedule of AntidilutiveSecurities Excluded fromComputation of Earnings PerShare

The following average outstanding stock-based compensation units were not included in thecomputation of diluted earnings per share because the effect was antidilutive:

(In thousands) 2012 2011 2010

Restricted stock units 148 64 9Stock options 389 755 —Stock appreciation rights 530 — —Other stock-based compensation units 317 554 —

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12 MonthsEnded

1 MonthsEnded

12MonthsEnded

Debt and Credit Agreements(Details) Dec. 31, 2012

USD ($)

Dec. 31,2011

USD ($)

Dec. 31,2011

Commercialpaper

Short-termdebt

USD ($)

Dec. 31,2012U.S.

commercialpaper

programUSD ($)

Dec. 31,2011U.S.

commercialpaper

programUSD ($)

Dec. 31,2012U.S.

commercialpaper

programLong-term

debtUSD ($)

Dec. 31,2012Euro

commercialpaper

programUSD ($)

Dec. 31,2012Euro

commercialpaper

programEUR (€)

Dec. 31, 2012Multi-yearrevolving

credit facilityUSD ($)

Dec. 31,2012

BilateralcreditfacilityUSD ($)

Mar. 31,2012

CreditAgreement

USD ($)bank

Dec. 31,2012

Multi-year

revolvingcreditfacilityUSD ($)

Line of Credit Facility [LineItems]Facility Limit $

1,338,900,000$550,000,000

$263,900,000

€200,000,000

$525,000,000

[1] $25,000,000

$525,000,000

Outstanding Balance 89,497,000 40,000,000 39,497,000 40,000,000 39,500,000 0 50,000,000 [1]

Available Credit 1,249,403,000 [2] 510,503,000 263,900,000 475,000,000 [1]

Maximum internal borrowinglimit 525,000,000

Number of lenders providingcredit facility (in banks) 14

Contingent increase tomaximum borrowing capacity 550,000,000

Variable basis of interest rates LIBORWrite off of previouslydeferred financing costs 500,000

Short-term borrowings $ 8,560,000 $51,414,000

Weighted average interest rate 4.90% 1.30%[1] U.S.-based program.[2] Although the Company has significant available credit, in practice, the Company limits aggregate commercial paper and credit facility borrowings at any one-time to a maximum of

$525 million (the amount of the back-up facility).

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12 Months EndedSummary of SignificantAccounting Policies (Details

3) (Foreign ExchangeForward Contracts,

Maximum)

Dec. 31, 2012

Foreign Exchange Forward Contracts | MaximumDerivative [Line Items]Maximum typical term of foreign currency forward exchange contracts (in days) 90 days

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1 Months Ended 12 MonthsEnded

Stock-Based Compensation(Stock Appreciation Rights)(Details) (Stock Appreciation

Rights (SARs), USD $)In Millions, except Share

data, unless otherwisespecified

Sep. 30,2012

May 31,2012

Mar. 31,2012 Dec. 31, 2012

Fair value assumptionsRisk-free interest rate (as a percent) 1.00% 1.18% 1.56%Dividend yield (as a percent) 3.80% 4.20% 3.50%Expected life 6 years 6

months6 years 6months

6 years 6months

Volatility (as a percent) 44.30% 44.00% 43.90%SAR grant price $ 21.37 $ 19.65 $ 23.73Fair value of SAR award (in dollars per share) $ 6.20 $ 4.77 $ 6.10Number of SharesOutstanding at 1/1/2012 0Granted (in shares) 707,012Forfeited/expired (in shares) (181,725)Outstanding at 1/1/2012 525,287Weighted Average Exercise PriceOutstanding at 1/1/2012 $ 0.00Granted $ 21.23Forfeited/expired $ 21.23Outstanding at 12/31/2012 $ 21.23Outstanding at 12/31/2012 - Aggregate Intrinsic Value $ 1.2Outstanding at 12/31/2012 - Weighted Average RemainingContractual Term

9 years 3months 18 days

Unrecognized stock-based compensation expense $ 2.3Unrecognized stock-based compensation expense, period ofrecognition

4 years 3months 18 days

1995 Executive Incentive Compensation PlanShare-based Compensation Arrangement by Share-basedPayment Award [Line Items]Granted (in shares) 43,058 345,502 318,452

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12 Months EndedDebt and Credit Agreements(Details 2) (USD $) Dec. 31,

2012Dec. 31,

2011Dec. 31,

2010Debt Instrument [Line Items]Long-term Debt $

960,706,000$857,358,000

Less: current maturities (3,278,000) (3,558,000)Total Long-term Debt 957,428,000853,800,000Cash payments for interest on all debt 45,500,000 46,400,000 59,900,000Maturities of Long-term Debt [Abstract]2014 14,770,0002015 252,312,0002016 1,357,0002017 240,683,000Senior notes | 5.75% notes due May 15, 2018Debt Instrument [Line Items]Stated interest rate 5.75% 5.75%Long-term Debt 447,931,000447,613,000Redemption price as a percentage of principal amount of notes 101.00%Senior notes | 5.125% notes due September 15, 2013Debt Instrument [Line Items]Stated interest rate 5.125% 5.125%Long-term Debt 149,875,000149,705,000Senior notes | 2.7% notes due October 15, 2015Debt Instrument [Line Items]Stated interest rate 2.70% 2.70%Long-term Debt 249,022,000248,681,000Redemption price as a percentage of principal amount of notes 101.00%Other financing payable in varying amounts due principally through 2018with a weighted-average interest rate of 2.7% and 9.4% at December 31,2012 and 2011, respectivelyDebt Instrument [Line Items]Long-term Debt $

113,878,000$11,359,000

Weighted average interest rate 2.70% 9.40%Line of creditDebt Instrument [Line Items]Maximum debt to capital ratio per covenant 60.00%Maximum proportion of subsidiary consolidated indebtedness toconsolidated tangible assets 10.00%

Minimum consolidated interest coverage ratio, numerator 3Minimum consolidated interest coverage ratio, denominator 1

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12 Months EndedInformation by Segment andGeographic Area (Details)

(USD $)Dec. 31, 2012

segment Dec. 31, 2011 Dec. 31, 2010

Segment Reporting [Abstract]Number of reportable segments 4Revenue, Major Customer [Line Items]Goodwill impairment charge $

265,038,000 $ 0 $ 0

Harsco Metals & Minerals SegmentRevenue, Major Customer [Line Items]Number of major customers 2 2 2Number of contracts whose loss could have material impact,minimum 1

Goodwill impairment charge 0Harsco Infrastructure SegmentRevenue, Major Customer [Line Items]Goodwill impairment charge 265,038,000ArcelorMittal | Harsco Metals & Minerals SegmentRevenue, Major Customer [Line Items]Amount of entity-wide revenue from major customers $

283,300,000$361,900,000

$359,000,000

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Summary of SignificantAccounting Policies (Details)

Dec. 31, 2012ReportingUnit

Goodwill [Line Items]Number of reporting units 7Number of reporting units with associated goodwill 3Harsco Metals & Minerals SegmentGoodwill [Line Items]Number of reporting units with associated goodwill 2

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12 Months EndedProperty, Plant andEquipment (Tables) Dec. 31, 2012

Property, Plant and Equipment [Abstract]Schedule of property, plant and equipment Property, plant and equipment consist of the following:

(In thousands)

EstimatedUsefulLives

December 312012

December 312011

Land — $ 26,336 $ 26,729Land improvements 5-20 years 14,199 17,960Buildings and improvements 5-40 years 190,078 186,799Machinery and equipment 3-20 years 2,950,384 2,977,521Uncompleted construction — 107,633 66,719Gross property, plant and equipment 3,288,630 3,275,728Less: Accumulated depreciation (2,022,405) (2,001,244)

Property, plant and equipment, net $1,266,225 $1,274,484

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12 Months EndedInformation by Segment andGeographic Area (Details 2)

(USD $)In Thousands, unlessotherwise specified

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

Revenues from External Customers and Long-Lived Assets [LineItems]Revenues from Unaffiliated Customers $ 3,046,018 $ 3,302,740 $ 3,038,678Net Property, Plant and Equipment 1,266,225 1,274,484 1,366,973United StatesRevenues from External Customers and Long-Lived Assets [LineItems]Revenues from Unaffiliated Customers 1,108,051 1,087,454 1,010,290Net Property, Plant and Equipment 242,890 276,966 291,470United KingdomRevenues from External Customers and Long-Lived Assets [LineItems]Revenues from Unaffiliated Customers 331,894 398,222 420,458Net Property, Plant and Equipment 115,775 114,521 141,014All otherRevenues from External Customers and Long-Lived Assets [LineItems]Revenues from Unaffiliated Customers 1,606,073 1,817,064 1,607,930Net Property, Plant and Equipment $ 907,560 $ 882,997 $ 934,489

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12 MonthsEnded

Financial Instruments(Details 2) (USD $)

In Thousands, unlessotherwise specified

Dec. 31,2012

Dec. 31,2011

Derivatives designated as hedging instrumentsDerivatives, Fair Value [Line Items]Period over which gains and losses are reclassified to earnings, low end of range 10 yearsPeriod over which gains and losses are reclassified to earnings, high end of range 15 yearsAsset Derivatives - Fair Value $ 44,910Liability Derivatives - Fair Value 1,792Derivatives designated as hedging instruments | Foreign currency forward exchangecontracts | Other current assetsDerivatives, Fair Value [Line Items]Asset Derivatives - Fair Value 274Derivatives designated as hedging instruments | Foreign currency forward exchangecontracts | Other current liabilitiesDerivatives, Fair Value [Line Items]Liability Derivatives - Fair Value 0Derivatives designated as hedging instruments | Cross currency interest rate swaps |Other assetsDerivatives, Fair Value [Line Items]Asset Derivatives - Fair Value 39,058 44,636Derivatives designated as hedging instruments | Cross currency interest rate swaps |Other liabilitiesDerivatives, Fair Value [Line Items]Liability Derivatives - Fair Value 14,346 1,792Derivatives not designated as hedging instruments | Foreign currency forward exchangecontracts | Other current assetsDerivatives, Fair Value [Line Items]Asset Derivatives - Fair Value 853 2,912Derivatives not designated as hedging instruments | Foreign currency forward exchangecontracts | Other current liabilitiesDerivatives, Fair Value [Line Items]Liability Derivatives - Fair Value $ 1,775 $ 1,207

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12 Months EndedEmployee Benefit Plans(Details) (USD $)

In Thousands, unlessotherwise specified

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

U.S. PlansDefined Benefit Plan, Net Periodic Benefit Cost [Abstract]Service cost $ 1,887 $ 1,557 $ 2,086Interest cost 12,780 13,468 14,049Expected return on plan assets (15,617) (16,480) (16,632)Recognized prior service costs 224 245 339Recognized losses 4,637 2,982 2,537Amortization of transition liability 0 0 0Settlement/curtailment loss (gain) 1,510 0 179Defined benefit plans pension cost 5,421 1,772 2,558Multiemployer plans 10,186 13,264 10,924Defined contribution plans 5,066 5,434 5,918Net periodic pension cost 20,673 20,470 19,400U.S. Plans | MaximumDefined Contribution Pension and Other Postretirement PlansDisclosure [Abstract]Employer matching contribution (as a percent) 4.00%Employer discretionary contribution (as a percent) 2.00%International PlansDefined Contribution Pension and Other Postretirement PlansDisclosure [Abstract]Additional contribution towards insurance and administrative costs (as apercent) 2.00%

Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]Service cost 3,418 4,350 4,052Interest cost 46,174 48,768 47,558Expected return on plan assets (45,050) (52,735) (46,079)Recognized prior service costs 397 424 327Recognized losses 15,194 11,332 12,077Amortization of transition liability 8 43 45Settlement/curtailment loss (gain) (2,589) 183 (210)Defined benefit plans pension cost 17,552 12,365 17,770Multiemployer plans 5,539 6,547 6,396Defined contribution plans 12,770 14,157 13,298Net periodic pension cost $ 35,861 $ 33,069 $ 37,464International Plans | MaximumDefined Contribution Pension and Other Postretirement PlansDisclosure [Abstract]Employer matching contribution (as a percent) 6.00%

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Financial Instruments(Details 5) (Fair Value,

Measurements, Recurring,Level 2, USD $)

In Thousands, unlessotherwise specified

Dec. 31,2012

Dec. 31,2011

Fair Value, Measurements, Recurring | Level 2Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis[Line Items]Assets - Foreign currency forward exchange contracts $ 853 $ 3,186Assets - Cross-currency interest rate swaps 39,058 44,636Liabilities - Foreign currency forward exchange contracts 1,775 1,207Liabilities - Cross-currency interest rate swaps $ 14,346 $ 1,792

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12 Months EndedInformation by Segment andGeographic Area (Details 4)

(USD $)In Thousands, unlessotherwise specified

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

Revenue from External Customer [Line Items]Consolidated Revenues $

3,046,018$3,302,740

$3,038,678

General CorporateRevenue from External Customer [Line Items]Consolidated Revenues 0 0 180Outsourced, on-site services to steel mills and other metals producers andresource recovery technologies for the re-use of industrial waste stream by-productsRevenue from External Customer [Line Items]Consolidated Revenues 1,333,2481,518,9021,393,794Engineered scaffolding, concrete forming and shoring, and other access-relatedservices, rentals and salesRevenue from External Customer [Line Items]Consolidated Revenues 937,293 1,108,2931,031,807Railway track maintenance services and equipmentRevenue from External Customer [Line Items]Consolidated Revenues 352,036 300,029 313,262Air-cooled heat exchangersRevenue from External Customer [Line Items]Consolidated Revenues 175,896 142,960 112,170Industrial grating productsRevenue from External Customer [Line Items]Consolidated Revenues 136,157 113,388 76,975Industrial abrasives and roofing granulesRevenue from External Customer [Line Items]Consolidated Revenues 70,855 69,399 67,737Heat transfer productsRevenue from External Customer [Line Items]Consolidated Revenues $ 40,533 $ 49,769 $ 42,753

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12 Months EndedFinancial Instruments(Details 6) (USD $) Dec. 31, 2012 Dec. 31,

2011Fair Value, Liabilities Measured on Recurring Basis, Unobservable InputReconciliation [Line Items]Fair value of long-term debt $

1,000,000,000$935,100,000

Carrying value of long-term debt 960,706,000 857,358,000Contingent considerationFair Value, Liabilities Measured on Recurring Basis, Unobservable InputReconciliation [Line Items]Balance at beginning of year 0 3,872,000Fair value adjustments included in earnings 0 (3,966,000)Effect of exchange rate changes 0 94,000Balance at end of year $ 0 $ 0

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12 Months EndedStock-Based Compensation(Other Stock Grants)

(Details) (USD $)Dec. 31,

2012Dec. 31,

2011Dec. 31,

2010Share-based Compensation Arrangement by Share-based PaymentAward [Line Items]Excess tax benefits from stock-based compensation $ 0 $

1,100,000 $ (100,000)

Other stock grantsShare-based Compensation Arrangement by Share-based PaymentAward [Line Items]Number of shares issued 4,000Recognized stock-based compensation expense $

1,000,000Other stock grants | Interim Chief Executive OfficerShare-based Compensation Arrangement by Share-based PaymentAward [Line Items]Number of shares issued 43,873

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12 Months EndedOther Expenses Dec. 31, 2012Other Income and Expenses[Abstract]Other Expenses Other Expenses

During 2012, 2011 and 2010, the Company recorded pre-tax other expenses from continuingoperations of $93.8 million, $102.7 million and $86.5 million, respectively. The majorcomponents of this income statement category are as follows:

Other (Income) Expenses

(In thousands) 2012 2011 2010

Net gains $ (5,848) $ (6,162) $ (7,792)Contingent consideration adjustments — (3,966) (10,620)Employee termination benefits costs 31,158 36,174 24,816Costs to exit activities 38,626 10,007 34,384Product line rationalization 24,966 66,063 34,302Impaired asset write-downs 7,152 — 9,966Other (income) expense (2,278) 624 1,417

Total $ 93,776 $ 102,740 $ 86,473

Substantially all other expenses in 2012, 2011 and 2010 were incurred in conjunction withrestructuring programs initiated within the Harsco Infrastructure Segment and the HarscoMetals & Minerals Segment in 2011 and the Harsco Infrastructure Segment in 2010. See Note 18,Restructuring Programs, for additional information on these programs.

Net GainsNet gains result from the sales of redundant properties (primarily land, buildings and relatedequipment) and non-core assets. In 2012, gains related to assets sold principally in the UnitedStates. In 2011, gains related to assets sold principally in the United Kingdom and the UnitedStates. In 2010, gains related to assets sold principally in the United States and Western Europe.

Net Gains

(In thousands) 2012 2011 2010

Harsco Metals & Minerals Segment $ (2,449) $ (1,666) $ (3,942)Harsco Infrastructure Segment (2,198) (3,607) (3,253)Harsco Industrial Segment (1,089) (889) (597)Corporate (112) — —

Total $ (5,848) $ (6,162) $ (7,792)

Cash proceeds associated with these gains are included in proceeds from the sale of assets in thecash flows from investing activities section of the Consolidated Statements of Cash Flows.

Contingent Consideration AdjustmentsCertain of the Company's acquisitions in prior years included contingent consideration featuresfor which defined goals needed to be met by the acquired business in order for payment of theconsideration. Each quarter until settlement of these contingencies, the Company assessed thelikelihood that an acquired business would achieve the goals and the resulting fair value of thecontingency. In accordance with accounting standards for business combinations, these

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adjustments were recognized in operating income (loss) from continuing operations in theConsolidated Statements of Operations as a component of the other expenses line item. TheCompany's assessment of these performance goals resulted in the following reductions topreviously recognized contingent consideration liabilities:

Contingent Consideration Adjustments

(In thousands) 2012 2011 2010

Harsco Infrastructure Segment $ — $ (3,966) $ (10,620)

All contingent consideration liabilities have been settled and there was no recorded contingentconsideration liability as of December 31, 2012 and 2011.

Employee Termination Benefit CostsCosts and the related liabilities associated with involuntary termination costs associated with one-time benefit arrangements provided as part of an exit or disposal activity are recognized by theCompany when a formal plan for reorganization is approved at the appropriate level ofmanagement and communicated to the affected employees. Additionally, costs associated withongoing benefit arrangements, or in certain countries where statutory requirements dictate aminimum required benefit, are recognized when they are probable and estimable.

The total amount of employee termination benefit costs incurred during 2012, 2011 and 2010 ispresented in the table below. The employee termination benefit costs in 2012 related primarily tothe 2011/2012 Restructuring Program and were primarily in Western Europe, North America, theUnited Kingdom and the Asia-Pacific region. The employee termination benefits costs in 2011related primarily to the 2011/2012 Restructuring Program and were primarily in Western Europeand the United Kingdom. The employee termination benefit costs in 2010 related primarily to theFourth Quarter 2010 Harsco Infrastructure Program in addition to initiatives in the HarscoMetals & Minerals Segment and were primarily in the United Kingdom, Western Europe andNorth America.

Employee Termination Benefit Costs

(In thousands) 2012 2011 2010

Harsco Metals & Minerals Segment $ 8,082 $ 18,533 $ 4,684Harsco Infrastructure Segment 17,291 16,546 19,068Harsco Rail Segment 245 296 578Harsco Industrial Segment 418 423 486Corporate 5,122 376 —

Total $ 31,158 $ 36,174 $ 24,816

Costs to Exit ActivitiesCosts associated with exit or disposal activities are recognized as follows:

• Costs to terminate a contract that is not a capital lease are recognized when an entityterminates the contract or when an entity ceases using the right conveyed by thecontract. This includes the costs to terminate the contract before the end of its term orthe costs that will continue to be incurred under the contract for its remaining termwithout economic benefit to the entity (e.g., lease run-out costs).

• Other costs associated with exit or disposal activities (e.g., costs to consolidate orclose facilities and relocate equipment or employees) are recognized and measured attheir fair value in the period in which the liability is incurred.

In 2012, $38.6 million of exit costs were incurred, principally related to Western Europe, theUnited States and the United Kingdom. This consists primarily of branch structure reduction andoffice rationalization costs in the Harsco Infrastructure and Harsco Metals & Minerals Segments.Costs to exit activities included $10.9 million of gains from currency translation adjustments

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recognized in earnings. The currency translation adjustments are non-cash items recognized whenthe Company has substantially liquidated its investment in a foreign entity. The Company exitedcertain countries and recognized such adjustment gains in conjunction with the Company's 2011/2012 Restructuring Program.

In 2011, $10.0 million of exit costs were incurred, principally related to the United States, theUnited Kingdom and Western Europe. This consists primarily of branch structure reduction andoffice rationalization costs in the Harsco Infrastructure and Harsco Metals & Minerals Segments.

In 2010, $34.4 million of exit costs were incurred, principally related to relocation and lease run-out costs in the Harsco Infrastructure Segment in the United States, Western Europe and theUnited Kingdom. Costs to exit activities in 2010 included $8.3 million of withdrawal liabilities toexit certain multiemployer pension plans, based on the latest available information received fromthe plan administrators and trustees. These withdrawal liabilities were triggered as the Companyhas ceased, or expected to cease, contributing to multiemployer plans for certain locations as partof the Fourth Quarter 2010 Harsco Infrastructure Program. A significant number of unionemployees in the United States are covered by multiemployer pension plans based on obligationsarising from collective bargaining agreements. These plans provide retirement benefits to all planparticipants based on their service to contributing employers, including union employees of theCompany. These retirement benefits are paid from assets held in trust for that purpose. TheCompany is only one of several employers participating in each of these plans. A withdrawalliability is recorded when it is probable that a liability exists and the amount can be reasonablyestimated from the financial information that is provided by the third-party trustees of the planspursuant to the Employee Retirement Income Security Act. At times, this financial informationmay be dated or insufficient to reasonably estimate an accrual at the balance sheet date when theCompany has determined it is probable that a liability exists.

Costs to Exit Activities

(In thousands) 2012 2011 2010

Harsco Metals & Minerals Segment $ 3,627 $ 1,313 $ 930Harsco Infrastructure Segment 34,820 8,694 33,458Harsco Industrial Segment — — (4)Corporate 179 — —

Total $ 38,626 $ 10,007 $ 34,384

Product Line RationalizationThe product line rationalization charges of $25.0 million, $66.1 million and $34.3 million in2012, 2011 and 2010, respectively, represent a write-down of certain rental assets and saleinventories in the Harsco Infrastructure Segment that were discontinued as part of the 2011/2012Restructuring Program and the Fourth Quarter 2010 Harsco Infrastructure Program, to streamlineand optimize product offerings. These charges are net of estimated salvage value. Salvage valueswere based on estimates of proceeds to be realized through the sale of this inventory outside thenormal course of business.

The 2011/2012 Restructuring Program and the Fourth Quarter 2010 Harsco InfrastructureProgram should result in a reduction in the number of product lines offered and is an extension ofthe Harsco Infrastructure Segment initiative to optimize the operating footprint and reduce thenumber of operating locations. By streamlining the product offerings, the Company anticipates itshould improve customer service to allow for more efficient operations, thereby reducing selling,engineering, logistics, warehousing and maintenance costs; minimizing future capitalexpenditures due to reduced product line offerings; improving capacity utilization; andeliminating unnecessary redundancy in its product offering. Customers will be serviced usingavailable alternative systems that should ensure no reduction in the rental capacity of theCompany.

Impaired Asset Write-downs

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Impaired asset write-downs are measured as the amount by which the carrying amount of assetsexceeds their fair value. Fair value is estimated based upon the expected future realizable cashflows including anticipated selling prices. Non-cash impaired asset write-downs are included inother, net on the Consolidated Statements of Cash Flows as adjustments to reconcile net income(loss) to net cash provided by operating activities.

There were impaired asset write-downs recorded of $7.2 million in 2012. In 2012, impaired assetwrite-downs were recorded in the Harsco Metals & Minerals Segment principally in the Asia-Pacific region resulting from exiting an underperforming contract. There were no impaired assetwrite-downs recorded in 2011. There were impaired asset write-downs recorded of $10.0 millionin 2010. In 2010, impaired asset write-downs of were recorded principally in the HarscoInfrastructure Segment in the United Kingdom and in the Harsco Metals & Minerals Segment inthe United States. The Harsco Infrastructure Segment write-downs in 2010 related primarily toadjustments to realizable value for two lines of business upon transfer to assets held for sale inother current assets on the Consolidated Balance Sheets in conjunction with the Fourth Quarter2010 Harsco Infrastructure Program.

Impaired Asset Write-downs

(In thousands) 2012 2011 2010

Harsco Metals & Minerals Segment $ 7,152 $ — $ 1,028Harsco Infrastructure Segment — — 8,938

Total $ 7,152 $ — $ 9,966

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12 Months EndedAccounts Receivable andInventories (Details) (USD $) Dec. 31, 2012 Dec. 31, 2011 Dec. 31,

2010Accounts Receivable, Net, Current [Abstract]Trade accounts receivable $

617,517,000$636,304,000

Less: Allowance for doubtful accounts (17,253,000) (17,829,000)Trade accounts receivable, net 600,264,000 618,475,000Other receivables 39,836,000 [1] 44,431,000 [1]

Provision for doubtful accounts related to trae accounts receivable 11,266,000 7,880,000 9,962,000InventoriesFinished goods 69,904,000 78,445,000Work-in-process 28,944,000 34,041,000Raw materials and purchased parts 99,058,000 92,995,000Stores and supplies 38,606,000 36,453,000Total inventories 236,512,000 241,934,000Valued at lower of cost or market:LIFO basis 108,633,000 115,523,000FIFO basis 14,641,000 13,087,000Average cost basis 113,238,000 113,324,000Total inventories 236,512,000 241,934,000Excess of inventories valued at current costs over LIFO 28,500,000 28,600,000Change in income as a result of LIFO basis inventory valuation overFIFO basis valuation $ 100,000 $ 100,000 $ 400,000

[1] Other receivables include insurance claim receivables, employee receivables, tax claim receivables and othermiscellaneous receivables not included in Trade accounts receivable, net.

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12 Months EndedInformation by Segment andGeographic Area (Tables) Dec. 31, 2012

Segment Reporting [Abstract]Schedule of Revenue from ExternalCustomers and Long-Lived Assets,by Geographical Areas

Countries with revenues from unaffiliated customers and net property, plant andequipment of ten percent or more of the consolidated totals (in at least one periodpresented) are as follows:

Information by Geographic Area (a)

Revenues from Unaffiliated Customers Property, Plant and Equipment, Net

Twelve Months Ended Balances at

December 31 December 31(Inthousands) 2012 2011 2010 2012 2011 2010

UnitedStates $1,108,051 $1,087,454 $1,010,290 $ 242,890 $ 276,966 $ 291,470UnitedKingdom 331,894 398,222 420,458 115,775 114,521 141,014All Other 1,606,073 1,817,064 1,607,930 907,560 882,997 934,489TotalsincludingCorporate $3,046,018 $3,302,740 $3,038,678 $1,266,225 $1,274,484 $1,366,973(a) Revenues are attributed to individual countries based on the location of the facility generating the

revenue.

Schedule of Segment OperatingInformation by Segment

Operating Information by Segment:

Twelve Months Ended

December 31

(In thousands) 2012 2011 2010

RevenuesHarsco Metals & Minerals $1,404,103 $1,588,302 $1,461,531Harsco Infrastructure 937,293 1,108,293 1,031,807Harsco Rail 352,036 300,029 313,262Harsco Industrial 352,586 306,116 231,898Corporate — — 180

Total Revenues $3,046,018 $3,302,740 $3,038,678

Operating Income (Loss)Harsco Metals & Minerals $ 85,523 $ 109,593 $ 117,915Harsco Infrastructure (368,657) (125,555) (145,346)Harsco Rail 56,079 58,746 66,124Harsco Industrial 60,160 50,656 42,871Corporate (7,895) (5,791) (3,133)

Total Operating Income (Loss) $ (174,790) $ 87,649 $ 78,431

Total AssetsHarsco Metals & Minerals $1,561,973 $1,537,538 $1,541,117Harsco Infrastructure 1,018,979 1,371,143 1,534,379Harsco Rail 188,348 213,410 208,338Harsco Industrial 81,035 80,784 58,918Corporate 125,634 136,002 126,468

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Total Assets $2,975,969 $3,338,877 $3,469,220

Depreciation and AmortizationHarsco Metals & Minerals $ 163,137 $ 183,784 $ 180,306Harsco Infrastructure 89,814 107,621 114,861Harsco Rail 10,116 10,133 11,110Harsco Industrial 3,098 2,805 2,832Corporate 5,952 6,098 6,130

Total Depreciation and Amortization $ 272,117 $ 310,441 $ 315,239

Capital ExpendituresHarsco Metals & Minerals $ 189,358 $ 212,009 $ 123,153Harsco Infrastructure 63,137 88,456 54,858Harsco Rail 4,133 4,497 9,498Harsco Industrial 3,669 4,938 1,722Corporate 4,726 3,201 3,117

Total Capital Expenditures $ 265,023 $ 313,101 $ 192,348

Reconciliation of Operating Profit(Loss) from Segments toConsolidated

Reconciliation of Segment Operating Income (Loss) to Consolidated Income FromContinuing Operations Before Income Taxes and Equity Income:

Twelve Months Ended

December 31

(In thousands) 2012 2011 2010

Segment operating income (loss) $ (166,895) $ 93,440 $ 81,564General Corporate expense (7,895) (5,791) (3,133)Operating income (loss) from continuingoperations (174,790) 87,649 78,431Interest income 3,676 2,751 2,668Interest expense (47,381) (48,735) (60,623)Income (loss) from continuing operations beforeincome taxes and equity income $ (218,495) $ 41,665 $ 20,476

Schedule of Product Information Information about Products and Services:

Revenues from Unaffiliated Customers

Twelve Months Ended

December 31

(In thousands) 2012 2011 2010

Product GroupOutsourced, on-site services to steel mills andother metals producers and resource recoverytechnologies for the re-use of industrial wastestream by-products $1,333,248 $1,518,902 $1,393,794Engineered scaffolding, concrete forming andshoring, and other access-related services,rentals and sales 937,293 1,108,293 1,031,807Railway track maintenance services andequipment 352,036 300,029 313,262Air-cooled heat exchangers 175,896 142,960 112,170Industrial grating products 136,157 113,388 76,975

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Industrial abrasives and roofing granules 70,855 69,399 67,737Heat transfer products 40,533 49,769 42,753General Corporate — — 180

Consolidated Revenues $3,046,018 $3,302,740 $3,038,678

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12 Months EndedFinancial Instruments(Details 4) (USD $) Dec. 31,

2012Dec. 31,

2011Dec. 31,

2010Derivative [Line Items]Pre-tax net gains and losses on certain loans designated as hedges of netinvestments in foreign subsidiaries

$(5,300,000)

$(6,300,000)

$19,000,000

Foreign currency forward exchange contractsDerivative [Line Items]U.S. Dollar Equivalent 434,095,000324,463,000Recognized Gain (Loss) (923,000) 1,732,000Foreign currency forward exchange contracts | Sell | British pounds sterlingDerivative [Line Items]U.S. Dollar Equivalent 0 18,350,000Recognized Gain (Loss) 0 (20,000)Foreign currency forward exchange contracts | Sell | EurosDerivative [Line Items]U.S. Dollar Equivalent 264,234,000178,889,000Recognized Gain (Loss) (1,082,000) 2,345,000Foreign currency forward exchange contracts | Sell | Other currenciesDerivative [Line Items]U.S. Dollar Equivalent 2,811,000 2,957,000Recognized Gain (Loss) (15,000) 62,000Foreign currency forward exchange contracts | Buy | British pounds sterlingDerivative [Line Items]U.S. Dollar Equivalent 6,141,000 4,364,000Recognized Gain (Loss) 58,000 (12,000)Foreign currency forward exchange contracts | Buy | EurosDerivative [Line Items]U.S. Dollar Equivalent 116,618,000 105,247,000Recognized Gain (Loss) 187,000 (878,000)Foreign currency forward exchange contracts | Buy | Other currenciesDerivative [Line Items]U.S. Dollar Equivalent 44,291,000 14,656,000Recognized Gain (Loss) (71,000) 235,000Derivatives Designated as Hedging Instruments | Cross currency interestrate swaps | Maturing 2018Derivative [Line Items]U.S. Dollar Equivalent 250,000,000Derivatives Designated as Hedging Instruments | Cross currency interestrate swaps | Maturing 2020Derivative [Line Items]U.S. Dollar Equivalent 220,000,000Derivatives Designated as Hedging Instruments | Cross currency interestrate swaps | Maturing 2013

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Derivative [Line Items]U.S. Dollar Equivalent $ 4,800,000

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12 Months EndedEmployee Benefit Plans(Tables) Dec. 31, 2012

Defined Benefit Plans andOther Postretirement BenefitPlans Table Text Block [LineItems]Schedule of Net Benefit Costs Net periodic pension cost for U.S. and international pension plans for 2012, 2011 and 2010 is as

follows:

U.S. Plans International Plans

(In thousands) 2012 2011 2010 2012 2011 2010

Defined benefitplans:

Service cost $ 1,887 $ 1,557 $ 2,086 $ 3,418 $ 4,350 $ 4,052Interest cost 12,780 13,468 14,049 46,174 48,768 47,558Expectedreturn onplan assets (15,617) (16,480) (16,632) (45,050) (52,735) (46,079)Recognizedprior servicecosts 224 245 339 397 424 327Recognizedlosses 4,637 2,982 2,537 15,194 11,332 12,077Amortizationof transitionliability — — — 8 43 45Settlement/curtailmentloss (gain) 1,510 — 179 (2,589) 183 (210)

Defined benefitplans pensioncost 5,421 1,772 2,558 17,552 12,365 17,770Multiemployerplans 10,186 13,264 10,924 5,539 6,547 6,396Definedcontributionplans 5,066 5,434 5,918 12,770 14,157 13,298

Net periodicpension cost $ 20,673 $ 20,470 $ 19,400 $ 35,861 $ 33,069 $ 37,464

Schedule of Net Funded Status The change in the financial status of the pension plans and amounts recognized on the ConsolidatedBalance Sheets at December 31, 2012 and 2011 are as follows:

U.S. Plans International Plans

(In thousands) 2012 2011 2012 2011

Change in benefit obligation:Benefit obligation at beginning of year $ 298,769 $ 264,969 $ 968,218 $ 883,342Service cost 1,887 1,557 3,418 4,350Interest cost 12,780 13,468 46,174 48,768Plan participants' contributions — — 830 986

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Amendments — — 60 598Actuarial loss 27,803 40,730 65,379 79,474Settlements/curtailments (3,029) — (9,506) (1,886)Benefits paid (21,762) (21,955) (44,968) (37,653)Effect of foreign currency — — 39,181 (10,332)Other — — (36) 571

Benefit obligation at end of year $ 316,448 $ 298,769 $ 1,068,750 $ 968,218

Change in plan assets:Fair value of plan assets at beginning ofyear $ 209,237 $ 221,673 $ 714,163 $ 708,025Actual return on plan assets 27,429 6,464 58,194 19,488Employer contributions 6,254 3,055 29,713 29,300Plan participants' contributions — — 830 986Settlements/curtailments (3,074) — (3,885) (1,127)Benefits paid (21,762) (21,955) (43,954) (36,631)Effect of foreign currency — — 27,998 (6,449)Other — — — 571

Fair value of plan assets at end of year $ 218,084 $ 209,237 $ 783,059 $ 714,163

Funded status at end of year $ (98,364) $ (89,532) $ (285,691) $ (254,055)

Schedule of AmountsRecognized in Balance Sheet

Amounts recognized on the Consolidated Balance Sheets consist of the following at December 31,2012 and 2011:

U.S. Plans International Plans

(In thousands)December 31

2012December 31

2011December 31

2012December 31

2011

Noncurrent assets $ 490 $ 397 $ 5,892 $ 4,372Current liabilities (2,531) (2,076) (1,048) (1,011)Noncurrent liabilities (96,323) (87,853) (290,535) (257,416)Accumulated other comprehensive lossbefore tax 159,094 149,429 469,949 417,406

Schedule of Net PeriodicBenefit Cost Not yetRecognized

Amounts recognized in Accumulated other comprehensive loss, before tax, consist of the following atDecember 31, 2012 and 2011:

U.S. Plans International Plans

(In thousands) 2012 2011 2012 2011

Net actuarial loss $ 158,579 $ 148,690 $ 467,438 $ 414,203Prior service cost 515 739 2,511 3,105Transition obligation — — — 98

Total $ 159,094 $ 149,429 $ 469,949 $ 417,406

Schedule of Amounts inAccumulated OtherComprehensive Income (Loss)to be Recognized over NextFiscal Year

The estimated amounts that will be amortized from accumulated other comprehensive loss intodefined benefit net periodic pension cost in 2013 are as follows:

(In thousands) U.S. PlansInternational

Plans

Net actuarial loss $ 5,052 $ 17,180Prior service cost 143 367

Total $ 5,195 $ 17,547

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Schedule of Expected BenefitPayments

The expected benefit payments for defined benefit plans over the next 10 years are as follows:

(In millions) 2013 2014 2015 2016 2017 2018-2022

U.S. Plans $ 19.7 $ 18.7 $ 18.5 $ 18.8 $ 18.5 $ 92.7InternationalPlans 46.1 47.6 49.5 51.6 54.1 296.1

Schedule of AssumptionsUsed

The weighted-average actuarial assumptions used to determine the net periodic pension cost for 2012,2011 and 2010 were as follows:

U.S. PlansDecember 31

International PlansDecember 31

Global Weighted-AverageDecember 31

2012 2011 2010 2012 2011 2010 2012 2011 2010

Discount rates 4.4% 5.3% 5.9% 4.8% 5.5% 5.7% 4.7% 5.4% 5.8%Expectedlong-termrates of returnon plan assets 7.8% 7.8% 8.0% 6.7% 7.4% 7.4% 6.9% 7.5% 7.5%Rates ofcompensationincrease 3.0% 3.0% 3.0% 3.4% 3.3% 3.6% 3.4% 3.3% 3.6%

Schedule of Assumptions,Used in Determining DefinedBenefit Pension PlanObligation

The weighted-average actuarial assumptions used to determine the defined benefit pension planobligations at December 31, 2012 and 2011 were as follows:

U.S. Plans International PlansGlobal Weighted-

Average

December 31 December 31 December 31

2012 2011 2012 2011 2012 2011

Discount rates 3.8% 4.4% 4.3% 4.8% 4.2% 4.7%Rates of compensation increase 3.0% 3.0% 2.8% 3.4% 2.8% 3.4%

Schedule of AccumulatedBenefit Obligations

The accumulated benefit obligation for all defined benefit pension plans at December 31, 2012and 2011 was as follows:

U.S. Plans International Plans

December 31 December 31

(In millions) 2012 2011 2012 2011

Accumulated benefit obligation $ 316.4 $ 298.6 $ 1,055.7 $ 952.8

Schedule of AccumulatedBenefit Obligations in Excessof Fair Value of Plan Assets

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets forpension plans with accumulated benefit obligations in excess of plan assets at December 31, 2012and 2011 were as follows:

U.S. Plans International Plans

(In millions)December 31

2012December 31

2011December 31

2012December 31

2011

Projected benefit obligation $ 306.5 $ 288.7 $ 1,040.4 $ 929.1Accumulated benefit obligation 306.5 288.7 1,029.4 921.0Fair value of plan assets 207.7 198.8 749.6 673.9

Schedule of Effect ofSignificant UnobservableInputs, Changes in Plan Assets

The following table summarizes changes in the fair value of Level 3 assets for 2011 and 2012:

Level 3 Asset Changes for the Twelve Months Ended December 31

(In thousands) 2012 2011 2010

Real Estate Limited Partnership:Balance at beginning of year $ 12,025 $ 10,184 $ 10,994Contributions to partnership 2,535 5,697 2,344Cash distributions received (1,270) (333) (636)Actual return on plan assets:

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Related to asset still held at end of year 4,456 (3,523) (2,518)

Balance at end of year $ 17,746 $ 12,025 $ 10,184

Schedule of MultiemployerPlans

(In thousands)

PensionProtectionAct Zone

Status ForPlan Years

Ended

Contributions By TheCompany

For Plan Years Ended (b)

Pension FundIdentification

Number 2011 2010 2012 2011 2010

Subject toFinancial

ImprovementPlan

SurchargeImposed

ExpirationDate of

Collective-BargainingAgreement

Significant multiemployer plans for which plan financial information is publicly available outside the Company'sfinancial statements:CumberlandMD VicinityBuildingConstructionEmployeesTrust Fund 52-6061646 Green Green $ 472 $ 477 $ 556 No No 2013GreaterPennsylvaniaCarpenters'Pension Fund 25-6135570 Green Yellow 1,176 1,542 1,412 Yes No 2014OhioCarpenters'Pension Plan 34-6574360 Green Green 768 953 777 Yes No 2013Significant multiemployer plans for which plan financial information is not publicly available outside the Company'sfinancial statements:New ZealandSteel PensionFund 018-054-531 N/A N/A 909 891 810 Yes No 2013Summary aggregate information for multiemployer plans which are not individually significant:All othermultiemployerplans 12,489 16,418 13,602

Total Contributions (a) $15,814 $20,281 $17,157

(a) Contributions to multiemployer pension plans in 2010 do not include $8.3 million of plan withdrawal costs triggeredas the Company has ceased, or expects to cease, contributing to ten multiemployer plans for certain locations as partof the Harsco Infrastructure Segment's restructuring initiatives. These restructuring initiatives are described inNote 18, Restructuring Programs. The $8.3 million of costs is included in the Other expenses line of theConsolidated Statements of Operations, as described in Note 16, Other Expenses.

(b) These amounts represent either contributions for the plan year as confirmed by plan sponsors or the Company'sestimates based on its fiscal year accounts payable records which will be updated as confirmation is received fromplan sponsors.

U.S. PlansDefined Benefit Plans andOther Postretirement BenefitPlans Table Text Block [LineItems]Schedule of Allocation of PlanAssets

The asset allocations attributable to the Company's U.S. defined benefit pension plans atDecember 31, 2012 and 2011, and the long-term target allocation of plan assets, by asset category, areas follows:

U.S. PlansPercentage of Plan Assets at

December 31

Asset Category

Target Long-Term

Allocation 2012 2011

Domestic equity securities 34%-44% 38.0% 38.0%International equity securities 14%-24% 19.7% 18.0%Fixed income securities 27%-37% 30.5% 32.8%Cash and cash equivalents Less than 5% 2.3% 1.9%Other 5%-15% 9.5% 9.3%

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Schedule of Fair Value of PlanAssets by Measurement Levels

The fair values of the Company's U.S. pension plans' assets at December 31, 2012 by asset class are asfollows:

(In thousands) Total Level 1 Level 2 Level 3

Domestic equities:Common stocks $ 42,142 $ 42,142 $ — $ —Mutual funds—equities 40,727 11,110 29,617 —

International equities—mutual funds 42,962 37,651 5,311 —Fixed income investments:

U.S. Treasuries and collateralizedsecurities 22,625 — 22,625 —Corporate bonds and notes 7,539 7,539 — —Mutual funds—bonds 36,447 36,447 — —

Other—mutual funds 20,667 20,667 — —Cash and money market accounts 4,975 4,975 — —

Total $ 218,084 $ 160,531 $ 57,553 $ —

The fair values of the Company's U.S. pension plans' assets at December 31, 2011 by asset class are asfollows:

(In thousands) Total Level 1 Level 2 Level 3

Domestic equities:Common stocks $ 39,295 $ 39,295 $ — $ —Mutual funds—equities 40,107 19 40,088 —

International equities—mutual funds 37,740 33,198 4,542 —Fixed income investments:

U.S. Treasuries and collateralizedsecurities 23,054 — 23,054 —Corporate bonds and notes 5,507 5,507 — —Mutual funds—bonds 40,110 40,110 — —

Other—mutual funds 19,392 19,392 — —Cash and money market accounts 4,032 4,032 — —

Total $ 209,237 $ 141,553 $ 67,684 $ —

International PlansDefined Benefit Plans andOther Postretirement BenefitPlans Table Text Block [LineItems]Schedule of Allocation of PlanAssets

The asset allocations attributable to the Company's international defined benefit pension plans atDecember 31, 2012 and 2011 and the long-term target allocation of plan assets, by asset category, areas follows:

Percentage of Plan Assets atDecember 31

International Plans Asset Category

Target Long-Term

Allocation 2012 2011

Equity securities 37.5% 34.5% 34.7%Fixed income securities 42.5% 48.0% 50.0%Cash and cash equivalents — 0.2% 0.4%Other 20.0% 17.3% 14.9%

Schedule of Fair Value of PlanAssets by Measurement Levels

The fair values of the Company's international pension plans' assets at December 31, 2011 by assetclass are as follows:

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(In thousands) Total Level 1 Level 2 Level 3

Equity securities:Mutual funds—equities $ 247,629 $ — $ 247,629 $ —

Fixed income investments:Corporate bonds and notes — — — —Mutual funds—bonds 294,010 — 294,010 —Insurance contracts 63,169 — 63,169 —

Other:Real estate funds / limited partnerships 43,122 — 31,097 12,025Other mutual funds 63,568 — 63,568 —

Cash and money market accounts 2,665 2,665 — —

Total $ 714,163 $ 2,665 $ 699,473 $ 12,025

The fair values of the Company's international pension plans' assets at December 31, 2012 by assetclass are as follows:

(In thousands) Total Level 1 Level 2 Level 3

Equity securities:Mutual funds—equities $ 269,789 $ — $ 269,789 $ —

Fixed income investments:Mutual funds—bonds 309,274 — 309,274 —Insurance contracts 66,900 — 66,900 —

Other:Real estate funds/limited partnerships 49,007 — 31,261 17,746Other mutual funds 86,537 — 86,537 —

Cash and money market accounts 1,552 1,552 — —

Total $ 783,059 $ 1,552 $ 763,761 $ 17,746

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12 Months EndedGoodwill and OtherIntangible Assets (Details)

(USD $)In Thousands, unlessotherwise specified

Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2010

Goodwill [Roll Forward]Balance at the beginning of the period $ 680,901 $ 690,787Changes to goodwill (2,295) [1] (104)Goodwill impairment (265,038) 0 0Foreign currency translation 15,630 (9,782)Balance at the end of the period 429,198 680,901 690,787Harsco Metals & Minerals SegmentGoodwill [Roll Forward]Balance at the beginning of the period 411,876 418,276Changes to goodwill 0 [1] 0Goodwill impairment 0Foreign currency translation 8,012 (6,400)Balance at the end of the period 419,888 411,876Harsco Infrastructure SegmentGoodwill [Roll Forward]Balance at the beginning of the period 259,715 263,212Changes to goodwill (2,295) [1] (115)Goodwill impairment (265,038)Foreign currency translation 7,618 (3,382)Balance at the end of the period 0 259,715Harsco Rail SegmentGoodwill [Roll Forward]Balance at the beginning of the period 9,310 9,299Changes to goodwill 0 [1] 11Goodwill impairment 0Foreign currency translation 0 0Balance at the end of the period $ 9,310 $ 9,310[1] Changes to goodwill relate principally to the allocation of goodwill, in accordance with U.S. GAAP, to

components of the Harsco Infrastructure Segment that were disposed of as part of the 2011/2012Restructuring Program.

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12 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended

Stock-Based Compensation(Restricted Stock) (Details)

(USD $)

Dec. 31,2012

Restrictedstockunits

Dec. 31,2011

Restrictedstockunits

Dec. 31,2010

Restrictedstockunits

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Nov. 16, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Sep. 10, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

May 04, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Mar. 16, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Jan. 23, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Sep. 20, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Apr. 26, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Sep. 22, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Jan. 25, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Nov. 19, 20091995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Jan. 27, 20091995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Jan. 22, 20081995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Jan. 23, 20071995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

May 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Mar. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 23,

2007

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 23,

2007

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 23,

2007

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 22,

2008

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 22,

2008

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 22,

2008

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 27,

2009

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 27,

2009

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 27,

2009

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

November 19,2009

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

November 19,2009

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

November 19,2009

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 25,

2010

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 25,

2010

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 25,

2010

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

September 22,2010

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

September 22,2010

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

September 22,2010

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

April 26, 2011

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

April 26, 2011

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

April 26, 2011

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

September 20,2011

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

September 20,2011

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

September 20,2011

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 23,

2012

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 23,

2012

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsJanuary 23,

2012

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsMarch 16,

2012

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsMarch 16,

2012

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock unitsMarch 16,

2012

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

May 4, 2012

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

May 4, 2012

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

May 4, 2012

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

September 10,2012

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

September 10,2012

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

September 10,2012

Dec. 31, 20121995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

November 16,2012

Dec. 31, 20111995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

November 16,2012

Dec. 31, 20101995

ExecutiveIncentive

CompensationPlan

Restrictedstock units

November 16,2012

Dec. 31,20121995Non-

EmployeeDirectors'

StockPlan

Dec. 04,2012

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 02,2012

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 02,2011

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 03,2010

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 01,2009

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

Dec. 31,2012

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

Dec. 31,2012

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 1,2009

Dec. 31,2011

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 1,2009

Dec. 31,2010

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 1,2009

Dec. 31,2012

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 3,2010

Dec. 31,2011

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 3,2010

Dec. 31,2010

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 3,2010

Dec. 31,2012

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 2,2011

Dec. 31,2011

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 2,2011

Dec. 31,2010

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 2,2011

Dec. 31,2012

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 2,2012

Dec. 31,2011

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 2,2012

Dec. 31,2010

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

May 2,2012

Dec. 31,2012

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

December4, 2012

Dec. 31,2011

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

December4, 2012

Dec. 31,2010

1995 Non-EmployeeDirectors'

StockPlan

Restrictedstockunits

December4, 2012

Share-based CompensationArrangement by Share-based Payment Award [LineItems]Maximum number of sharesauthorized for issuance 8,000,000 600,000

Number of shares available forgrant 1,165,744 186,190

Vesting period (in years) 3 years 3 years 3 years 1 yearRetirement age of employees(in years) 62 years 62 years 62 years

Granted (in shares) 172,104 37,442 42,000 5,000 5,985 56,233 44,268 30,000 13,500 3,750 25,000 1,000 15,000 106,625 130,950 101,700 2,688 27,930 20,192 16,000 16,000Granted (in dollars per share) $ 19.23 $ 29.61 $ 26.53 $ 16.45 $ 19.05 $ 17.34 $ 21.39 $ 17.81 $ 21.18 $ 32.10 $ 23.47 $ 31.49 $ 31.90 $ 25.15 $ 45.95 $ 38.25 $ 19.95 $ 21.58 $ 34.79 $ 30.99 $ 27.28Expense (Income) $

1,420,000$1,850,000

$3,297,000 $ 0 $ 0 $ 41,000 $ 0 $ 68,000 $ 1,601,000 $ 43,000 $ 614,000 $ 667,000 $ 0 $ 12,000 $ 298,000 $ 1,000 $ 10,000 $ 20,000 $ 20,000 $ 373,000 $ 194,000 $ 44,000 $ 29,000 $ 0 $ 151,000 $ 111,000 $ 0 $ 168,000 $ 0 $ 0 $ 130,000 $ 0 $ 0 $ 213,000 $ 0 $ 0 $ 11,000 $ 0 $ 0 $ 3,000 $ 0 $ 0 $ 0 $ 0 $ 145,000 $ 0 $ 165,000 $ 331,000 $ 234,000 $ 468,000 $ 0 $ 402,000 $ 0 $ 0 $ 0 $ 0 $ 0

Restricted stock unit activityNonvested at the beginning ofthe period (in shares) 62,641 140,535 229,491

Granted (in shares) 172,104 37,442 42,000 5,000 5,985 56,233 44,268 30,000 13,500 3,750 25,000 1,000 15,000 106,625 130,950 101,700 2,688 27,930 20,192 16,000 16,000Vested restricted Stock Units(in shares) (67,861) (113,136) (124,424)

Forfeited (in shares) (25,411) (2,200) (6,532)Nonvested at the end of theperiod (in shares) 141,473 62,641 140,535

Weighted Average Grant-Date Fair ValueNonvested at the beginning ofthe period (in dollars pershare)

$ 25.39 $ 30.83 $ 34.45

Granted (in dollars per share) $ 19.23 $ 29.61 $ 26.53 $ 16.45 $ 19.05 $ 17.34 $ 21.39 $ 17.81 $ 21.18 $ 32.10 $ 23.47 $ 31.49 $ 31.90 $ 25.15 $ 45.95 $ 38.25 $ 19.95 $ 21.58 $ 34.79 $ 30.99 $ 27.28Vested (in dollars per share) $ 24.86 $ 33.55 $ 35.81Forfeited (in dollars per share) $ 20.35 $ 25.15 $ 35.23Nonvested at the end of theperiod (in dollars per share) $ 19.19 $ 25.39 $ 30.83

Additional disclosuresUnrecognized stock-basedcompensation expense

$1,900,000

Unrecognized stock-basedcompensation expense, periodof recognition

2 years

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12 Months EndedIncome Taxes (Details) (USD$) Dec. 31, 2012 Dec. 31,

2011Dec. 31,

2010Income from continuing operations before income taxes and equityincomeUnited States $ 40,411,000 $

47,680,000$23,037,000

International (258,906,000) (6,015,000) (2,561,000)Income (loss) from continuing operations before income taxes andequity income (218,495,000) 41,665,000 20,476,000

Currently payable:U.S. federal 22,603,000 4,249,000 (325,000)U.S. state 1,561,000 913,000 453,000International 21,795,000 23,860,000 30,765,000Total income taxes currently payable 45,959,000 29,022,000 30,893,000Deferred U.S. federal (3,831,000) 670,000 6,228,000Deferred U.S. state (843,000) 503,000 (56,000)Deferred international (6,034,000) 19,653,000 (32,789,000)Total income tax expense 35,251,000 49,848,000 4,276,000Cash payments for income taxes, including taxes on gain or loss fromdiscontinued business 42,600,000 42,300,000 27,400,000

Effective Income Tax Rate, Continuing Operations, Tax RateReconciliation [Abstract]U.S. federal income tax rate (as a percent) 35.00% 35.00% 35.00%U.S. state income taxes, net of federal income tax benefit (as a percent) (0.10%) 2.90% 5.10%U.S. domestic manufacturing deductions and credits (as a percent) 1.70% (9.60%) (5.90%)Change in permanent reinvestment assertion (as a percent) 0.00% 0.00% 9.30%Difference in effective tax rates on international earnings andremittances (as a percent) (0.70%) (11.70%) (34.40%)

Uncertain tax position contingencies and settlements (as a percent) 2.50% (18.00%) 1.20%Changes in realization on beginning of the year deferred tax assets (as apercent) (1.80%) 89.10% 8.40%

Restructuring charges with no realizable tax benefits (as a percent) (9.80%) 23.00% 11.20%U.S. nondeductible items (as a percent) (0.70%) 6.00% 8.70%Deferred charges (as a percent) 0.00% 0.00% (19.00%)Non-deductible goodwill impairment (42.50%) 0.00% 0.00%Cumulative effect of change in statutory tax rates/laws (as a percent) 0.10% 3.50% 3.40%Other, net (as a percent) 0.20% (0.60%) (2.10%)Effective income tax rate (as a percent) (16.10%) 119.60% 20.90%Goodwill impairment charge 265,038,000 0 0Changes in realization on beginning of the year deferred tax assets (37,300,000)Components of Deferred Tax Assets and Liabilities [Abstract]Depreciation and amortization 99,219,000 120,590,000Expense accruals 38,595,000 43,418,000

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Inventories 2,649,000 2,588,000Provision for receivables 1,677,000 2,205,000Deferred revenue 2,014,000 2,065,000Operating loss carryforwards 99,475,000 79,408,000Foreign tax credit carryforwards 24,223,000 29,540,000Pensions 104,413,000 95,657,000Currency adjustments 26,661,000 30,813,000Post-retirement benefits 1,160,000 1,079,000Other 25,324,000 19,299,000Subtotal 324,177,000 304,007,000Total deferred income taxes (liabilities) 101,233,000 122,655,000Valuation allowance (126,532,000) (99,617,000)Total deferred income taxes (assets) 197,645,000 204,390,000Deferred Tax Assets, Net, Classification [Abstract]Other current assets 45,672,000 50,694,000Other assets 70,271,000 59,200,000Other current liabilities (651,000) (729,000)Deferred income taxes (18,880,000) (27,430,000)Non-cash tax expense 6,100,000 35,400,000Increase in the valuation allowance recorded through Accumulatedother comprehensive loss 22,900,000

Undistributed earnings indefinitely reinvested outside United States 882,000,000 834,000,000One-time cost associated with repatriation of undistributed earningsindefinitely reinvested outside United States 166,000,000

Reduction in income tax expense resulting from tax holiday 100,000International operationsComponents of Deferred Tax Assets and Liabilities [Abstract]Operating loss carryforwards 90,400,000Deferred Tax Assets, Net, Classification [Abstract]Operating loss carryforwards not subject to expiration 63,600,000International operations | Expiring between 2013 and 2032Components of Deferred Tax Assets and Liabilities [Abstract]Operating loss carryforwards 26,800,000U.S. stateComponents of Deferred Tax Assets and Liabilities [Abstract]Operating loss carryforwards 9,100,000U.S. state | Expiring between 2013 and 2017Components of Deferred Tax Assets and Liabilities [Abstract]Operating loss carryforwards 100,000U.S. state | Expiring between 2018 and 2022Components of Deferred Tax Assets and Liabilities [Abstract]Operating loss carryforwards 3,100,000U.S. state | Expiring between 2023 and 2027Components of Deferred Tax Assets and Liabilities [Abstract]

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Operating loss carryforwards 2,700,000U.S. state | Expiring between 2028 and 2032Components of Deferred Tax Assets and Liabilities [Abstract]Operating loss carryforwards 3,200,000Harsco Infrastructure SegmentEffective Income Tax Rate, Continuing Operations, Tax RateReconciliation [Abstract]Goodwill impairment charge $

265,038,000

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12 Months EndedSummary of SignificantAccounting Policies (Details

2) (USD $)Dec. 31,

2012Dec. 31,

2011Dec. 31,

2010Warranty activityWarranty reserves, beginning of the year $

5,596,000$5,037,000

$4,078,000

Accruals for warranties issued during the year 7,935,000 4,003,000 4,399,000Reductions related to pre-existing warranties (2,401,000) (1,769,000) (1,447,000)Warranties paid (1,958,000) (1,677,000) (2,054,000)Other (principally foreign currency translation) (80,000) 2,000 61,000Warranty reserves, beginning of the year 9,092,000 5,596,000 5,037,000Self-insuranceLoss Contingencies [Line Items]Insurance expense from continuing operations 33,800,000 37,000,000 38,500,000Decrease in pre-tax insurance expense due to retrospective insurance reserveadjustments from continuing operations 4,300,000 2,700,000 2,500,000

Liabilities for asserted and unasserted claims 82,700,000 85,900,000Liabilities covered by insurance carriers $

3,600,000$2,600,000

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12 Months EndedCONSOLIDATEDSTATEMENTS OF

CHANGES IN EQUITY(Parenthetical) (USD $)

In Thousands, except Sharedata, unless otherwise

specified

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

Cash dividends declared, Common, per share $ 0.82 $ 0.82 $ 0.82Translation adjustments, deferred income taxes $ (5,436) $ 2,504 $ 7,612Cash flow hedging instrument adjustments, deferred income taxes 567 (2,101) 347Pension liability adjustments, deferred income taxes 7,572 19,143 (9,727)Marketable securities unrealized gains (losses), deferred income taxes $ (3) $ 7 $ (7)Stock options exercised, net, shares 38,900 157,058 91,485Stock Issued During Period, Shares, Restricted Stock Award Net of Forfeituresand Tax Obligations Settled in Shares 68,558 92,630 69,515

Treasury shares repurchased, shares 0 286,577 0

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12 Months EndedIncome Taxes (Details 2)(USD $) Dec. 31,

2012Dec. 31,

2011Dec. 31,

2010Dec. 31,

2009Income Tax Disclosure [Abstract]Interest and penalties recognized $

1,800,000$1,000,000 $ 300,000

Interest and penalties accrued 8,000,000 9,700,000Reconciliation of Unrecognized Tax Benefits, ExcludingAmounts Pertaining to Examined Tax Returns [RollForward]Balance at the beginning of the period 33,408,000 35,889,000 36,791,000Additions for tax positions related to the current year (includescurrency translation adjustment) 584,000 2,534,000 1,846,000

Additions for tax positions related to prior years (includescurrency translation adjustment) 37,000 4,014,000 313,000

Other reductions for tax positions related to prior years (3,987,000) (147,000) (429,000)Statutes of limitations expirations (5,124,000) (8,521,000) (2,348,000)Settlements 0 (361,000) (284,000)Balance at the end of the period 24,918,000 33,408,000 35,889,000Reconciliation of Deferred Income Tax Benefits [RollForward]Balance at beginning of period (517,000) (738,000) (949,000)Additions for tax positions related to the current year (includescurrency translation adjustment) (8,000) (10,000) 0

Additions for tax positions related to prior years (includescurrency translation adjustment) 2,000 (11,000) (44,000)

Other reductions for tax positions related to prior years 0 0 0Statutes of limitation expirations 154,000 224,000 156,000Settlements 0 18,000 99,000Balance at the end of the period (369,000) (517,000) (738,000)Reconciliation of Net Unrecognized Tax Benefits [RollForward]Balance at the beginning of the period 24,549,000 32,891,000 35,151,000 35,842,000Additions for tax positions related to the current year (includescurrency translation adjustment) 576,000 2,524,000 1,846,000

Additions for tax positions related to prior years (includescurrency translation adjustment) 39,000 4,003,000 269,000

Other reductions for tax positions related to prior years (3,987,000) (147,000) (429,000)Statutes of limitation expirations (4,970,000) (8,297,000) (2,192,000)Settlements 0 (343,000) (185,000)Balance at the end of the period 24,549,000 32,891,000 35,151,000 35,842,000Income Tax Contingency [Line Items]Portion of UTB, expected to be recognized upon ssettlement oftax examinations and the expiration of various statutes oflimitations within next twelve months

3,800,000

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Foreign jurisdictionIncome Tax Contingency [Line Items]Unrecognized tax benefits related to current and prior years thatcreated additional operating losses in a foreign jurisdiction 200,000

Decrease related to previously unrecognized tax benefits thatwere recognized in 2012 due to change in enacted legislation

$(4,000,000)

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12 Months EndedOther Expenses (Tables) Dec. 31, 2012Other Income and Expenses [Abstract]Schedule of other expenses (income) The major components of this income statement category are as follows:

Other (Income) Expenses

(In thousands) 2012 2011 2010

Net gains $ (5,848) $ (6,162) $ (7,792)Contingent consideration adjustments — (3,966) (10,620)Employee termination benefits costs 31,158 36,174 24,816Costs to exit activities 38,626 10,007 34,384Product line rationalization 24,966 66,063 34,302Impaired asset write-downs 7,152 — 9,966Other (income) expense (2,278) 624 1,417

Total $ 93,776 $102,740 $ 86,473

Schedule of net gains from sales ofredundant properties and non-core assets Net Gains

(In thousands) 2012 2011 2010

Harsco Metals & Minerals Segment $ (2,449) $ (1,666) $ (3,942)Harsco Infrastructure Segment (2,198) (3,607) (3,253)Harsco Industrial Segment (1,089) (889) (597)Corporate (112) — —

Total $ (5,848) $ (6,162) $ (7,792)

Schedule of reductions to previouslyrecognized contingent considerationliabilities

The Company's assessment of these performance goals resulted in the followingreductions to previously recognized contingent consideration liabilities:

Years Ended December 31

(In thousands) 2012 2011 2010

Reduction of contingent considerationliabilities $ — $ 3,966 $ 10,620The Company's assessment of these performance goals resulted in the followingreductions to previously recognized contingent consideration liabilities:

Contingent Consideration Adjustments

(In thousands) 2012 2011 2010

Harsco Infrastructure Segment $ — $ (3,966) $ (10,620)

Schedule of employee termination benefitcosts Employee Termination Benefit Costs

(In thousands) 2012 2011 2010

Harsco Metals & Minerals Segment $ 8,082 $ 18,533 $ 4,684Harsco Infrastructure Segment 17,291 16,546 19,068Harsco Rail Segment 245 296 578Harsco Industrial Segment 418 423 486Corporate 5,122 376 —

Total $ 31,158 $ 36,174 $ 24,816

Schedule of exit costsCosts to Exit Activities

(In thousands) 2012 2011 2010

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Harsco Metals & Minerals Segment $ 3,627 $ 1,313 $ 930Harsco Infrastructure Segment 34,820 8,694 33,458Harsco Industrial Segment — — (4)Corporate 179 — —

Total $ 38,626 $ 10,007 $ 34,384

Schedule of impaired asset write-downsImpaired Asset Write-downs

(In thousands) 2012 2011 2010

Harsco Metals & Minerals Segment $ 7,152 $ — $ 1,028Harsco Infrastructure Segment — — 8,938

Total $ 7,152 $ — $ 9,966

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12 Months EndedSummary of SignificantAccounting Policies (Policies) Dec. 31, 2012Accounting Policies[Abstract]Consolidation Consolidation

The consolidated financial statements include all accounts of Harsco Corporation (the"Company"), all entities in which the Company has a controlling voting interest, and variableinterest entities required to be consolidated in accordance with generally accepted accountingprinciples in the United States ("U.S. GAAP"). Intercompany accounts and transactions havebeen eliminated among consolidated entities.

Cash and Cash Equivalents Cash and Cash EquivalentsCash and cash equivalents include cash on hand, demand deposits and short-term investmentsthat are highly liquid in nature and have an original maturity of three months or less.

Inventories InventoriesInventories are stated at the lower of cost or market. Inventories in the United States areprincipally accounted for using the last-in, first-out ("LIFO") method. Other inventories areaccounted for using the first-in, first-out ("FIFO") or average cost methods.

Depreciation DepreciationProperty, plant and equipment is recorded at cost and depreciated over the estimated useful livesof the assets using principally the straight-line method. When property is retired from service, thecost of the retirement is charged to the allowance for depreciation to the extent of theaccumulated depreciation and the balance is charged to income. Long-lived assets to be disposedof by sale are not depreciated while they are held for sale.

Leases LeasesThe Company leases certain property and equipment under noncancelable lease agreements. Alllease agreements are evaluated and classified as either an operating lease or capital lease. A leaseis classified as a capital lease if any of the following criteria are met: transfer of ownership to theCompany by the end of the lease term; the lease contains a bargain purchase option; the leaseterm is equal to or greater than 75% of the asset's economic life; or the present value of futureminimum lease payments is equal to or greater than 90% of the asset's fair market value.Operating lease expense is recognized ratably over the lease term, including rent abatementperiods and rent holidays.

Goodwill and Other IntangibleAssets

Goodwill and Other Intangible AssetsIn accordance with U.S. GAAP, goodwill is not amortized and is tested for impairment at leastannually or more frequently if indicators of impairment exist or if a decision is made to dispose ofa business. Goodwill is allocated among and evaluated for impairment at the reporting unit level,which is defined as an operating segment or one level below an operating segment for whichdiscrete financial information is available. A significant amount of judgment is involved indetermining if an indicator of impairment has occurred. Such indicators may include decliningcash flows or operating losses at the reporting unit level, a significant adverse change in legalfactors or in the business climate, an adverse action or assessment by a regulator, unanticipatedcompetition, a loss of key personnel, or a more-likely-than-not expectation that a reporting unit ora significant portion of a reporting unit will be sold or otherwise disposed of, among others.

The Company performs the annual goodwill impairment test as of October 1. The Company hasseven reporting units (only three of which have goodwill associated with them as ofDecember 31, 2012), of which two are included in the Harsco Metals & Minerals Segment. Theremaining reporting unit is the Harsco Rail Segment. Almost all of the Company's goodwill isallocated to the Harsco Metals business, which is included in the Harsco Metals & MineralsSegment.

The evaluation of potential goodwill impairment involves comparing the current fair value ofeach reporting unit to its net book value, including goodwill. The Company uses a discountedcash flow model (“DCF model”) to estimate the current fair value of reporting units, asmanagement believes forecasted operating cash flows are the best indicator of current fair value.A number of significant assumptions and estimates are involved in the preparation of DCF

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models including future revenues and operating margin growth, the weighted-average cost ofcapital (“WACC”), tax rates, capital spending, pension funding, the impact of business initiatives,and working capital projections. These assumptions and estimates may vary significantly betweenreporting units. DCF models are based on approved operating plans for the early years andhistorical relationships and projections for later years. WACC rates are derived from internal andexternal factors including, but not limited to, the average market price of the Company's stock,shares outstanding, book value of the Company's debt, the long-term risk free interest rate, andboth market and size-specific risk premiums. Due to the many variables noted above and therelative size of the Company's goodwill, differences in assumptions may have a material impacton the results of the Company's annual goodwill impairment testing. If the net book value of areporting unit were to exceed its current fair value, the second step of the goodwill impairmenttest would be required to determine if an impairment existed and the amount of goodwillimpairment to record, if any. The second step of the goodwill impairment test compares the netbook value of a reporting unit's goodwill with the implied fair value of that goodwill. The impliedfair value of goodwill represents the excess of fair value of the reporting unit over the fair valueamounts assigned to all of the assets and liabilities of the reporting unit if it were to be acquired ina business combination and the current fair value of the reporting unit represented the purchaseprice. The second step of the goodwill impairment test requires the utilization of valuationexperts. The valuation of goodwill for the second step of the goodwill impairment test isconsidered a level 3 fair value measurement.

Impairment of Long-LivedAssets (Other than Goodwill)

Impairment of Long-Lived Assets (Other than Goodwill)Long-lived assets are reviewed for impairment when events and circumstances indicate that thecarrying amount of an asset may not be recoverable. The Company's policy is to determine if animpairment loss exists when it is determined that the carrying amount of the asset exceeds thesum of the expected undiscounted future cash flows resulting from use of the asset, and itseventual disposition. Impairment losses are measured as the amount by which the carryingamount of the asset exceeds its fair value, normally as determined in either open markettransactions or through the use of a discounted cash flow model. Long-lived assets to be disposedof are reported at the lower of the carrying amount or fair value less cost to sell.

Revenue Recognition Revenue RecognitionService revenues and product revenues are recognized when they are realized or realizable andwhen earned. Revenue is realized or realizable and earned when all of the following criteria aremet: persuasive evidence of an arrangement exists, delivery has occurred or services have beenrendered, the Company's price to the buyer is fixed or determinable and collectability isreasonably assured. Service revenues include the Harsco Infrastructure Segment as well asservice revenues of the Harsco Metals & Minerals Segment and Harsco Rail Segment. Productrevenues include the Harsco Industrial Segment and the product revenues of the Harsco Metals &Minerals Segment and the Harsco Rail Segment.

Harsco Metals & Minerals Segment—This Segment provides services predominantly on a long-term, volume-of-production contract basis. Contracts may include both fixed monthly fees as wellas variable fees based upon specific services provided to the customer. The fixed-fee portion isrecognized periodically as earned (normally monthly) over the contractual period. The variable-fee portion is recognized as services are performed and differs from period to period based uponthe actual provision of services. This Segment also sells industrial abrasives and roofing granulesproducts. Product revenues are recognized generally when title and risk of loss transfer, and whenall of the revenue recognition criteria have been met. Title and risk of loss for domestic shipmentsgenerally transfer to the customer at the point of shipment. For export sales, title and risk of losstransfer in accordance with the international commercial terms included in the specific customercontract.

Harsco Infrastructure Segment—This Segment provides services under both fixed-fee and time-and-materials short-term contracts, rents equipment under month-to-month rental contracts and,to a lesser extent, sells products to customers. Equipment rentals are recognized as earned overthe contractual rental period. Services provided on a fixed-fee basis are recognized over thecontractual period based upon the completion of specific units of accounting (i.e., erection anddismantling of equipment). Services provided on a time-and-materials basis are recognized when

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earned as services are performed. Product revenue is recognized when title and risk of losstransfer, and when all of the revenue recognition criteria have been met.

Harsco Rail Segment—This Segment sells railway track maintenance equipment, parts andprovides railway track maintenance services. Product revenue is recognized generally when titleand risk of loss transfer, and when all of the revenue recognition criteria have been met. Title andrisk of loss for domestic shipments generally transfer to the customer at the point of shipment.For export sales, title and risk of loss transfer in accordance with the international commercialterms included in the specific customer contract. Revenue may be recognized subsequent to thetransfer of title and risk of loss for certain product sales, if the specific sales contract includes acustomer acceptance clause that provides for different timing. In those situations revenue isrecognized after transfer of title and risk of loss and after customer acceptance. Services arepredominantly on a long-term, time-and-materials contract basis. Revenue is recognized whenearned as services are performed within the long-term contracts.

Harsco Industrial Segment—This Segment sells industrial grating products, heat exchangers, andheat transfer products. Product revenues are generally recognized when title and risk of losstransfer, and when all of the revenue recognition criteria have been met. Title and risk of loss fordomestic shipments generally transfer to the customer at the point of shipment. For export sales,title and risk of loss transfer in accordance with the international commercial terms included inthe specific customer contract.

Income Taxes Income TaxesThe Company accounts for income taxes under the asset and liability method, which requires therecognition of deferred tax assets and liabilities for the expected future tax consequences of theevents that have been included in the consolidated financial statements. Under this method,deferred tax assets and liabilities are determined based on the differences between the financialstatements and tax bases of assets and liabilities using enacted tax rates in effect for the year inwhich the differences are expected to reverse. The effect of a change in tax rates on deferred taxassets and liabilities is recognized in income in the period that includes the enactment date.

The Company records deferred tax assets to the extent that the Company believes that these assetswill more likely than not be realized. In making such determinations, the Company considers allavailable positive and negative evidence, including future reversals of existing deferred taxliabilities, projected future taxable income, tax planning strategies and recent financial results. Inthe event the Company was to determine that it would be able to realize deferred income taxassets in the future in excess of their net recorded amount, an adjustment to the valuationallowance would be made that would reduce the provision for income taxes.

The Company prepares and files its tax returns based on its interpretation of tax laws andregulations and records its provision for income taxes based on these interpretations.Uncertainties may exist in estimating the Company's tax provisions and in filing its tax returns inthe many jurisdictions in which the Company operates, and as a result these interpretations maygive rise to an uncertain tax position. The tax benefit from an uncertain tax position is recognizedwhen it is more likely than not that the position will be sustained upon examination, includingresolutions of any related appeals or litigation processes, based on its technical merits. Eachsubsequent period the Company determines if existing or new uncertain tax positions meet amore likely than not recognition threshold and adjust accordingly.

The Company recognizes interest and penalties related to unrecognized tax benefits withinIncome tax expense in the accompanying Consolidated Statements of Operations. Accruedinterest and penalties are included in Other liabilities on the Consolidated Balance Sheets.

In general, it is the practice and the intention of the Company to reinvest the undistributedearnings of its non-U.S. subsidiaries. Should the Company repatriate future earnings, suchamounts would become subject to U.S. taxation upon remittance of dividends and under certain

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other circumstances, thereby giving recognition to current tax expense and to international taxcredits.

The significant assumptions and estimates described in the preceding paragraphs are importantcontributors to the effective tax rate each year.

Accrued Insurance and LossReserves

Amounts estimated to be paid within one year have been classified as current Insurance liabilities,with the remainder included in non-current Insurance liabilities on the Consolidated BalanceSheets.Accrued Insurance and Loss ReservesThe Company retains a significant portion of the risk for U.S. workers' compensation, U.K.employers' liability, automobile, general and product liability losses.Reserves have been recorded that reflect the undiscounted estimated liabilities including claimsincurred but not reported. When a recognized liability is covered by third-party insurance, theCompany records an insurance claim receivable to reflect the covered liability. Changes in theestimates of the reserves are included in net income (loss) in the period determined.

Warranties The Company provides for warranties of certain products as they are sold.

Warranty expense and payments are incurred principally in the Harsco Rail and Harsco IndustrialSegments. Warranty activity may vary from year to year depending upon the mix of revenues andcontractual terms related to product warranties.

Foreign Currency Translation Foreign Currency TranslationThe financial statements of the Company's subsidiaries outside the United States, except for thosesubsidiaries located in highly inflationary economies and those entities for which the U.S. dollaris the currency of the primary economic environment in which the entity operates, are measuredusing the local currency as the functional currency. Assets and liabilities of these subsidiaries aretranslated at the exchange rates at the balance sheet date. Resulting translation adjustments arerecorded in the cumulative translation adjustment account, a separate component of Accumulatedother comprehensive loss on the Consolidated Balance Sheets. Income and expense items aretranslated at average monthly exchange rates. Gains and losses from foreign currency transactionsare included in net income (loss). For subsidiaries operating in highly inflationary economies, andthose entities for which the U.S. dollar is the currency of the primary economic environment inwhich the entity operates, gains and losses on foreign currency transactions and balance sheettranslation adjustments are included in net income (loss). In 2012, 2011 and 2010, the Companyhad no subsidiaries operating in highly inflationary economies.

Financial Instruments andHedging

Financial Instruments and HedgingThe Company has operations throughout the world that are exposed to fluctuations in relatedforeign currencies in the normal course of business. The Company seeks to reduce exposure toforeign currency fluctuations through the use of forward exchange contracts. The Company doesnot hold or issue financial instruments for trading purposes, and it is the Company's policy toprohibit the use of derivatives for speculative purposes. The Company has a Foreign CurrencyRisk Management Committee that meets periodically to monitor foreign currency risks.

The Company executes foreign currency forward exchange contracts to hedge transactions forfirm purchase commitments, to hedge variable cash flows of forecasted transactions and forexport sales denominated in foreign currencies. These contracts are generally for 90 days or less;however, where appropriate, longer-term contracts may be utilized. For those contracts that aredesignated as qualified cash flow hedges, gains or losses are recorded in Accumulated othercomprehensive loss on the Consolidated Balance Sheets.

The Company uses cross currency interest rate swaps in conjunction with certain debt issuancesin order to lock in fixed local currency interest rates. Under these cross currency interest rateswaps, the Company receives interest based on a fixed or variable U.S. dollar rate and paysinterest based on a fixed local currency rate based on the contractual amounts in U.S. dollars andthe local currency, respectively.

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Amounts recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheetsare reclassified into operations in the same period or periods during which the hedged forecastedtransaction affects income. The cash flows from these contracts are classified consistent with thecash flows from the transaction being hedged (e.g., the cash flows related to contracts to hedgethe purchase of fixed assets are included in cash flows from investing activities, etc.). TheCompany also enters into certain forward exchange contracts that are not designated as hedges.Gains and losses on these contracts are recognized in operations based on changes in fair marketvalue. For fair value hedges of a firm commitment, the gain or loss on the derivative and theoffsetting gain or loss on the hedged firm commitment are recognized currently in operations.

Earnings Per Share Earnings Per ShareBasic earnings per share are calculated using the weighted-average shares of common stockoutstanding, while diluted earnings per share reflect the dilutive effects of stock-basedcompensation. All share and per share amounts are restated for any stock splits and stockdividends that occur prior to the issuance of the financial statements.

Use of Estimates in thePreparation of FinancialStatements

Use of Estimates in the Preparation of Financial StatementsThe preparation of financial statements in conformity with U.S. GAAP requires management tomake estimates and assumptions that affect the reported amounts of assets and liabilities, thedisclosure of contingent assets and liabilities at the date of the financial statements, and thereported amounts of revenues and expenses. Actual results could differ from those estimates.

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12 Months EndedSCHEDULE II.VALUATION AND

QUALIFYING ACCOUNTS Dec. 31, 2012

Valuation and Qualifying Accounts[Abstract]SCHEDULE II. VALUATION ANDQUALIFYING ACCOUNTS

SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS

Continuing Operations

(In thousands)

COLUMN ACOLUMN

BCOLUMN

C COLUMN DCOLUMN

E

Additions Additions (Deductions)

Description

Balance atBeginning

ofPeriod

Charged toCost andExpenses

Due toCurrency

TranslationAdjustments Other

Balance atEnd

of Period

For the year 2012:Allowance forDoubtfulAccounts $ 17,829 $ 11,266 $ 166 $(12,008) (a) $ 17,253Deferred TaxAssets—ValuationAllowance $ 99,617 $ 18,552 $ 3,449 $ 4,914 $126,532

For the year 2011:Allowance forDoubtfulAccounts $ 20,283 $ 7,880 $ (677) $ (9,657) (a) $ 17,829Deferred TaxAssets—ValuationAllowance $ 29,469 $ 47,575 (b) $ (312) $ 22,885 (c) $ 99,617

For the year 2010:Allowance forDoubtfulAccounts $ 24,495 $ 9,962 $ (336) $(13,838) (a) $ 20,283Deferred TaxAssets—ValuationAllowance $ 22,744 $ 4,754 $ (347) $ 2,318 $ 29,469

(a) Includes principally the utilization of previously reserved amounts.(b) Includes principally a valuation allowance recorded to fully offset the U.K. operations' net

deferred tax assets primarily related to U.K. pension liabilities.(c) Includes principally a valuation allowance recorded on other comprehensive income

(loss) activity related to U.K. pension.

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12 Months EndedLeases (Details) (USD $) Dec. 31, 2012 Dec. 31, 2011Dec. 31, 2010Leases [Abstract]Rental expense for property, plant and equipment $ 54,900,000 $ 66,100,000 $ 62,900,000Operating leases2013 41,881,0002014 31,776,0002015 22,558,0002016 16,518,0002017 11,757,000After 2017 11,070,000Minimum rentals to be received under noncancelable subleases $ 7,400,000

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12 Months EndedComponents of AccumulatedOther Comprehensive Loss

(Tables) Dec. 31, 2012

Comprehensive Income (Loss), Net of Tax,Attributable to Parent [Abstract]Components of accumulated other comprehensiveloss

The components of Accumulated other comprehensive loss, net of theeffect of income taxes, are as follows:

Accumulated Other Comprehensive Loss—Net of Tax

December 31

(In thousands) 2012 2011

Cumulative foreign exchange translationadjustments $ 62,308 $ 51,313Effective portion of cash flow hedges (8,139) (3,807)Cumulative unrecognized actuarial losseson pension obligations (465,286) (411,641)Unrealized loss on marketable securities (51) (56)

Accumulated other comprehensive loss $(411,168) $(364,191)

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12 Months EndedSummary of SignificantAccounting Policies (Tables) Dec. 31, 2012

Accounting Policies [Abstract]Schedule of Product Warranty Liability The following table summarizes the warranty activity for 2012, 2011 and 2010:

(In thousands) 2012 2011 2010

Warranty reserves, beginning of the year $ 5,596 $ 5,037 $ 4,078Accruals for warranties issued during theyear 7,935 4,003 4,399Reductions related to pre-existingwarranties (2,401) (1,769) (1,447)Warranties paid (1,958) (1,677) (2,054)Other (principally foreign currencytranslation) (80) 2 61

Warranty reserves, end of the year $ 9,092 $ 5,596 $ 5,037

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12 Months EndedAcquisitions andDispositions (Tables) Dec. 31, 2012

Acquisitions and Dispositions [Abstract]Schedule of reductions to previouslyrecognized contingent considerationliabilities

The Company's assessment of these performance goals resulted in the followingreductions to previously recognized contingent consideration liabilities:

Years Ended December 31

(In thousands) 2012 2011 2010

Reduction of contingent considerationliabilities $ — $ 3,966 $ 10,620The Company's assessment of these performance goals resulted in the followingreductions to previously recognized contingent consideration liabilities:

Contingent Consideration Adjustments

(In thousands) 2012 2011 2010

Harsco Infrastructure Segment $ — $ (3,966) $ (10,620)

Schedule of net income attributable toCompany and transfers to noncontrollinginterest

The purpose of the following schedule is to disclose the effects of changes in theCompany's ownership interest in its subsidiaries on the Company's equity.

Years Ended December 31

(In thousands) 2012 2011 2010

Net income (loss) attributable to theCompany $(254,612) $ (11,510) $ 6,754Decrease in the Company's paid-in capitalfor purchase of noncontrolling interests — — (1,003)Change from net income (loss)attributable to the Company and transfersto noncontrolling interest $(254,612) $ (11,510) $ 5,751

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CONSOLIDATEDSTATEMENTS OF

CHANGES IN EQUITY(USD $)

In Thousands, unlessotherwise specified

TotalCommon

StockIssued

CommonStock

Treasury

AdditionalPaid-inCapital

RetainedEarnings

AccumulatedOther

ComprehensiveIncome (Loss)

NoncontrollingInterests

Balances at Dec. 31, 2009 $1,509,834

$139,234

$(735,016) $ 137,746 $

2,133,297$ (201,684) $ 36,257

Increase (Decrease) inStockholders' Equity [RollForward]Net income (loss) 12,459 6,754 5,705Cash dividends declared:Common @ $0.82 per share,$0.82 per share, and $0.82 pershare in 2010, 2011, and 2012,respectively

(66,131) (66,131)

Noncontrolling interests (5,850) (5,850)Translation adjustments, net ofdeferred income taxes of$7,612, $2,504, and $(5,436)in 2010, 2011, and 2012,respectively

(6,633) (6,430) (203)

Cash flow hedging instrumentadjustments, net of deferredincome taxes of $347,$(2,101), and $567 in 2010,2011, and 2012, respectively

(700) (700)

Purchase of subsidiary sharesfrom noncontrolling interests (1,159) (1,003) (156)

Contributions fromnoncontrolling interests 698 698

Pension liability adjustments,net of deferred income taxes of$(9,727), $19,143, and $7,572in 2010, 2011, and 2012,respectively

22,872 22,872

Marketable securitiesunrealized gain (loss), net ofdeferred income taxes of $(7),$7, and $(3) in 2010, 2011 and2012, respectively

10 10

Stock options exercised, net91,485 shares, 157,058 shares,and 38,900 shares in 2010,2011, and 2012, respectively

754 144 (836) 1,446

Vesting of restricted stockunits and other stock grants, (1,306) 136 (1,254) (188)

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net 69,515 shares, 92,630shares and 68,558 shares in2010, 2011 and 2012,respectivelyAmortization of unearnedstock-based compensation, netof forfeitures

3,297 3,297

Balances at Dec. 31, 2010 1,468,145139,514 (737,106) 141,298 2,073,920 (185,932) 36,451Increase (Decrease) inStockholders' Equity [RollForward]Net income (loss) (9,556) (11,510) 1,954Cash dividends declared:Common @ $0.82 per share,$0.82 per share, and $0.82 pershare in 2010, 2011, and 2012,respectively

(66,176) (66,176)

Noncontrolling interests (4,171) (4,171)Translation adjustments, net ofdeferred income taxes of$7,612, $2,504, and $(5,436)in 2010, 2011, and 2012,respectively

(60,575) (60,354) (221)

Cash flow hedging instrumentadjustments, net of deferredincome taxes of $347,$(2,101), and $567 in 2010,2011, and 2012, respectively

5,933 5,933

Contributions fromnoncontrolling interests 9,526 9,526

Pension liability adjustments,net of deferred income taxes of$(9,727), $19,143, and $7,572in 2010, 2011, and 2012,respectively

(123,827) (123,827)

Marketable securitiesunrealized gain (loss), net ofdeferred income taxes of $(7),$7, and $(3) in 2010, 2011 and2012, respectively

(11) (11)

Stock options exercised, net91,485 shares, 157,058 shares,and 38,900 shares in 2010,2011, and 2012, respectively

2,319 249 (840) 2,910

Vesting of restricted stockunits and other stock grants,net 69,515 shares, 92,630shares and 68,558 shares in

226 151 (910) 985

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2010, 2011 and 2012,respectivelyTreasury shares repurchased,286,577 shares in 2011 (5,788) (5,788)

Amortization of unearnedstock-based compensation, netof forfeitures

3,873 3,873

Balances at Dec. 31, 2011 1,219,918139,914 (744,644) 149,066 1,996,234 (364,191) 43,539Increase (Decrease) inStockholders' Equity [RollForward]Net income (loss) (254,101) (254,612) 511Cash dividends declared:Common @ $0.82 per share,$0.82 per share, and $0.82 pershare in 2010, 2011, and 2012,respectively

(66,132) (66,132)

Noncontrolling interests (2,605) (2,605)Translation adjustments, net ofdeferred income taxes of$7,612, $2,504, and $(5,436)in 2010, 2011, and 2012,respectively

11,434 10,995 439

Cash flow hedging instrumentadjustments, net of deferredincome taxes of $347,$(2,101), and $567 in 2010,2011, and 2012, respectively

(4,333) (4,333)

Contributions fromnoncontrolling interests 8,602 8,602

Sale of investment inconsolidated subsidiary (704) (704)

Pension liability adjustments,net of deferred income taxes of$(9,727), $19,143, and $7,572in 2010, 2011, and 2012,respectively

(53,645) (53,645)

Marketable securitiesunrealized gain (loss), net ofdeferred income taxes of $(7),$7, and $(3) in 2010, 2011 and2012, respectively

6 6

Stock options exercised, net91,485 shares, 157,058 shares,and 38,900 shares in 2010,2011, and 2012, respectively

710 49 661

Vesting of restricted stockunits and other stock grants,net 69,515 shares, 92,630

515 117 (561) 959

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shares and 68,558 shares in2010, 2011 and 2012,respectivelyAmortization of unearnedstock-based compensation, netof forfeitures

1,959 1,959

Balances at Dec. 31, 2012 $ 861,624$140,080

$(745,205) $ 152,645 $

1,675,490$ (411,168) $ 49,782

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12 Months EndedAccounts Receivable andInventories (Tables) Dec. 31, 2012

Accounts Receivable and Inventories[Abstract]Schedule of accounts receivable Accounts receivable consist of the following:

Accounts Receivable

(In thousands)December 31

2012December 31

2011

Trade accounts receivable $ 617,517 $ 636,304Less: Allowance for doubtful accounts (17,253) (17,829)

Trade accounts receivable, net $ 600,264 $ 618,475

Other receivables (a) $ 39,836 $ 44,431(a) Other receivables include insurance claim receivables, employee receivables, tax claim

receivables and other miscellaneous receivables not included in Trade accounts receivable,net.

Schedule of provision for doubtfulaccounts related to trade accountsreceivable

The provision for doubtful accounts related to trade accounts receivable for theyears ended December 31, 2012, 2011 and 2010:

Years Ended December 31

(In thousands) 2012 2011 2010

Provision for doubtful accounts related totrade accounts receivable $ 11,266 $ 7,880 $ 9,962

Schedule of inventories Inventories consist of the following:

Inventories

(In thousands)December 31

2012December 31

2011

Finished goods $ 69,904 $ 78,445Work-in-process 28,944 34,041Raw materials and purchased parts 99,058 92,995Stores and supplies 38,606 36,453

Total inventories $ 236,512 $ 241,934

Valued at lower of cost or market:LIFO basis $ 108,633 $ 115,523FIFO basis 14,641 13,087Average cost basis 113,238 113,324

Total inventories $ 236,512 $ 241,934

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Components of AccumulatedOther Comprehensive Loss

(Details) (USD $)In Thousands, unlessotherwise specified

Dec. 31, 2012 Dec. 31, 2011

Accumulated Other Comprehensive Loss - Net of TaxCumulative foreign exchange translation adjustments $ 62,308 $ 51,313Effective portion of cash flow hedges (8,139) (3,807)Cumulative unrecognized actuarial losses on pension obligations (465,286) (411,641)Unrealized loss on marketable securities (51) (56)Accumulated other comprehensive loss $ (411,168) $ (364,191)

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12 Months EndedStock-Based Compensation(Tables) Dec. 31, 2012

Disclosure of Compensation RelatedCosts, Share-based Payments[Abstract]Schedule of restricted stock units issuedand compensation expense

The following table summarizes restricted stock units issued and the compensationexpense recorded for 2012, 2011 and 2010:

Stock-Based Compensation Expense

Expense(Dollars in thousands,except per unit)

RestrictedStockUnits

Fair Valueper Unit 2012 2011 2010

Directors:May 1, 2009 16,000 27.28 $ — $ — $ 145May 3, 2010 16,000 30.99 — 165 331May 2, 2011 20,192 34.79 234 468 —May 2, 2012 27,930 21.58 402 — —December 4,

2012 2,688 19.95 — — —Employees:

January 23, 2007 101,700 38.25 — — 41January 22, 2008 130,950 45.95 — 68 1,601January 27, 2009 106,625 25.15 43 614 667November 19,2009 15,000 31.90 — 12 298January 25, 2010 1,000 31.49 1 10 20September 22,2010 25,000 23.47 20 373 194April 26, 2011 3,750 32.10 44 29 —September 20,2011 13,500 21.18 151 111 —January 23, 2012 30,000 17.81 168 — —March 16, 2012 44,268 21.39 130 — —May 4, 2012 56,233 17.34 213 — —September 10,2012 5,985 19.05 11 — —November 16,2012 5,000 16.45 3 — —

Total $ 1,420 $ 1,850 $ 3,297

Schedule of restricted stock unit activity Restricted stock unit activity for 2012, 2011 and 2010 was as follows:

RestrictedStock Units

WeightedAverage

Grant-DateFair Value

Nonvested at January 1, 2010 229,491 $ 34.45Granted 42,000 26.53

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Vested (124,424) 35.81Forfeited (6,532) 35.23Nonvested at December 31, 2010 140,535 30.83Granted 37,442 29.61Vested (113,136) 33.55Forfeited (2,200) 25.15Nonvested at December 31, 2011 62,641 25.39Granted 172,104 19.23Vested (67,861) 24.86Forfeited (25,411) 20.35

Nonvested at December 31, 2012 141,473 $ 19.19

Schedule of stock option activity Stock option activity for 2012, 2011 and 2010 was as follows:

SharesUnderOption

WeightedAverageExercise

Price

AggregateIntrinsic

Value(in

millions)(a)

Outstanding, January 1, 2010 389,970 $ 15.66 $ 6.7Exercised (115,493) 13.77 —Expired (805) 16.33 —Outstanding, December 31, 2010 273,672 16.46 3.3Granted 617,500 31.75 —Exercised (199,032) 15.95 —Forfeited/Expired (30,300) 30.92 —Outstanding, December 31, 2011 661,840 30.22 0.2Exercised (38,900) 18.23 —Forfeited/Expired (294,940) 31.29 —

Outstanding, December 31, 2012 328,000 $ 30.67 $ 0.2(a) Intrinsic value is defined as the difference between the current market value and the exercise

price, for those options where the market price exceeds the exercise price.

Schedule of outstanding and exercisableoptions

The following table summarizes information concerning outstanding and exercisableoptions at December 31, 2012:

Options Outstanding Options Exercisable

Range ofExercisablePrices Vested Unvested

WeightedAverageExercisePrice Per

Share

WeightedAverage

RemainingContractual

Life inYears

NumberExercisable

WeightedAverageExercisePrice Per

Share

$16.96 -$16.96 24,000 — $ 16.96 0.33 24,000 $ 16.96$31.75 -$31.75 — 304,000 31.75 5.07 — —

24,000 304,000 $ 30.67 4.72 24,000 $ 16.96

Schedule of weighted-average grant-datefair value of unvested options

Weighted-average grant-date fair value of unvested options during the year endedDecember 31, 2012 was as follows:

SharesUnderOption

WeightedAverage

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Grant-DateFair Value

Outstanding, January 1, 2012 589,000 $ 10.90Forfeited (285,000) 10.90

Outstanding, December 31, 2012 304,000 $ 10.90

Schedule of stock appreciation rightsvaluation assumptions

The fair value of each SAR grant was estimated on the date of grant using a Black-Scholes pricing model with the following assumptions:

March 2012Grant

May 2012Grant

September2012 Grant

Risk-free interest rate 1.56% 1.18% 1.00%Dividend yield 3.50% 4.20% 3.80%Expected life (years) 6.5 6.5 6.5Volatility 43.9% 44.0% 44.3%SAR grant price $ 23.73 $ 19.65 $ 21.37Fair value of SAR award $ 6.10 $ 4.77 $ 6.20

Schedule of Stock Appreciation Rightsaward activity

A summary of activity relating to SARs for the year ended December 31, 2012 wasas follows:

SARs

Number ofShares

WeightedAverageExercise

Price

AggregateIntrinsicValue (inmillions)

WeightedAverage

RemainingContractual

Term(Years)

Outstanding, January 1, 2012 — $ — $ —Granted 707,012 21.23Forfeited/expired (181,725) 21.23

Outstanding, December 31, 2012 525,287 $ 21.23 $ 1.2 9.3

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12 Months EndedGoodwill and OtherIntangible Assets (Details 2)

(USD $) Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2010

Finite-Lived Intangible Assets [Line Items]Intangible assets, net $ 77,726,000 $ 93,501,000Gross Carrying Amount 250,338,000 250,597,000Accumulated Amortization 172,612,000 157,096,000Amortization expense for intangible assets 17,600,000 31,500,000 33,000,000Estimated amortization expense for the next five years2013 16,500,000 [1]

2014 14,250,000 [1]

2015 9,750,000 [1]

2016 8,000,000 [1]

2017 4,250,000 [1]

Customer relatedFinite-Lived Intangible Assets [Line Items]Gross Carrying Amount 183,862,000 183,576,000Accumulated Amortization 129,904,000 119,708,000Non-compete agreementsFinite-Lived Intangible Assets [Line Items]Gross Carrying Amount 1,347,000 1,353,000Accumulated Amortization 1,310,000 1,301,000PatentsFinite-Lived Intangible Assets [Line Items]Gross Carrying Amount 6,909,000 6,884,000Accumulated Amortization 5,503,000 5,145,000Technology relatedFinite-Lived Intangible Assets [Line Items]Gross Carrying Amount 29,588,000 29,497,000Accumulated Amortization 17,551,000 14,614,000Trade namesFinite-Lived Intangible Assets [Line Items]Gross Carrying Amount 18,685,000 18,538,000Accumulated Amortization 11,688,000 8,379,000OtherFinite-Lived Intangible Assets [Line Items]Gross Carrying Amount 9,947,000 10,749,000Accumulated Amortization $ 6,656,000 $ 7,949,000[1] These estimated amortization expense amounts do not reflect the potential effect of future foreign currency

exchange rate fluctuations.

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12 Months EndedFinancial Instruments(Details) (USD $)

In Millions, unless otherwisespecified

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

MinimumGuarantor Obligations [Line Items]Number of countries in which entity has currency exposures 50Stand by letters of credit, bonds and bank guaranteesGuarantor Obligations [Line Items]Contingent liability outstanding $ 208.8 $ 273.6Stand by letters of credit, bonds and bank guarantees | MinimumGuarantor Obligations [Line Items]Fees paid to various banks and insurance companies on face amount ofinstruments (as a percent) 0.32%

Stand by letters of credit, bonds and bank guarantees | MaximumGuarantor Obligations [Line Items]Guarantee term 5 yearsFees paid to various banks and insurance companies on face amount ofinstruments (as a percent) 1.93%

Guarantees of debt of certain third parties related to international operationsGuarantor Obligations [Line Items]Service revenues 1.3 1.2 1.9Potential amount of future payments for guarantees, maximum 0.7 1.6Environmental indemnification for properties sold to third party in 2007 |MaximumGuarantor Obligations [Line Items]Guarantee term 20 yearsEnvironmental indemnification for property from a lease terminated in 2006Guarantor Obligations [Line Items]Potential amount of future payments for guarantees, maximum 3.0Guarantees related to arrangements with certain customersGuarantor Obligations [Line Items]Potential amount of future payments for guarantees per occurrence, maximum $ 3.0Guarantees related to arrangements with certain customers | MaximumGuarantor Obligations [Line Items]Guarantee term 4 years

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CONSOLIDATEDBALANCE SHEETS (USD

$)In Thousands, unlessotherwise specified

Dec. 31,2012

Dec. 31,2011

Current assets:Cash and cash equivalents $ 95,250 $ 121,184Trade accounts receivable, net 600,264 618,475Other receivables 39,836 [1] 44,431 [1]

Inventories 236,512 241,934Other current assets 94,581 133,407Total current assets 1,066,443 1,159,431Property, plant and equipment, net 1,266,225 1,274,484Goodwill 429,198 680,901Intangible assets, net 77,726 93,501Other assets 136,377 130,560Total assets 2,975,969 3,338,877Current liabilities:Short-term borrowings 8,560 51,414Current maturities of long-term debt 3,278 3,558Accounts payable 221,479 252,329Accrued compensation 94,398 92,603Income taxes payable 10,109 8,409Dividends payable 16,520 16,498Insurance liabilities 19,434 25,075Advances on contracts 47,696 111,429Other current liabilities 216,101 220,953Total current liabilities 637,575 782,268Long-term debt 957,428 853,800Deferred income taxes 18,880 27,430Insurance liabilities 63,248 60,864Retirement plan liabilities 385,062 343,842Other liabilities 52,152 50,755Total liabilities 2,114,345 2,118,959COMMITMENTS AND CONTINGENCIESHARSCO CORPORATION STOCKHOLDERS' EQUITYPreferred stock, Series A junior participating cumulative preferred stock 0 0Common stock, par value $1.25 (issued 112,063,938 and 111,931,267 shares atDecember 31, 2012 and 2011, respectively) 140,080 139,914

Additional paid-in capital 152,645 149,066Accumulated other comprehensive loss (411,168) (364,191)Retained earnings 1,675,490 1,996,234Treasury stock, at cost (31,479,310 and 31,454,097 shares at December 31, 2012 and2011, respectively) (745,205) (744,644)

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Total Harsco Corporation stockholders' equity 811,842 1,176,379Noncontrolling interests 49,782 43,539Total equity 861,624 1,219,918Total liabilities and equity $

2,975,969$3,338,877

[1] Other receivables include insurance claim receivables, employee receivables, tax claim receivables and othermiscellaneous receivables not included in Trade accounts receivable, net.

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12 Months EndedRestructuring Programs(Tables) Dec. 31, 2012

2011/2012 RestructuringProgramRestructuring Cost andReserve [Line Items]Schedule of RestructuringReserve by Type of Cost

The restructuring accrual for the 2011/2012 Restructuring Program at December 31, 2012 and theactivity for the year then ended are as follows:

(In thousands)

AccrualDecember 31

2011

AdditionalExpenses

Incurred (a)

Non-CashCharges /

AdjustmentsCash

Payments

ForeignCurrency

Translation

RemainingAccrual

December31

2012

HarscoInfrastructureSegment

Employeeterminationbenefit costs $ 14,500 $ 17,495 $ (326) $(25,265) $ 595 $ 6,999Cost to exitactivities 2,833 45,927 215 (39,997) 22 9,000

Total HarscoInfrastructureSegment (b) 17,333 63,422 (111) (65,262) 617 15,999

Harsco Metals & Minerals SegmentEmployeeterminationbenefit costs 12,737 4,974 — (11,017) (200) 6,494Cost to exitactivities — 499 — — — 499Total HarscoMetals &MineralsSegment 12,737 5,473 — (11,017) (200) 6,993

Harsco RailSegment

Employeeterminationbenefit costs 50 67 — (117) — —

Harsco CorporateEmployeeterminationbenefit costs 351 371 — (709) — 13

Total $ 30,471 $ 69,333 $ (111) $(77,105) $ 417 $ 23,005(a) Includes principally the recognition of additional expenses due to timing considerations under U.S. GAAP, as

well as adjustments to previously recorded restructuring charges resulting from changes in facts andcircumstances in the implementation of these activities.

(b) The table does not include $25.0 million of non-cash product rationalization expense or $17.7 million ofproceeds from asset sales under the 2011/2012 Restructuring Program for this Segment as these items did notimpact the restructuring accrual during 2012.

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Fourth Quarter 2010 HarscoInfrastructure ProgramRestructuring Cost andReserve [Line Items]Schedule of RestructuringReserve by Type of Cost

The restructuring accrual for the Fourth Quarter 2010 Harsco Infrastructure Program atDecember 31, 2012 and the activity for the year then ended are as follows:

(In thousands)

AccrualDecember 31

2011

Adjustmentsto Previously

RecordedRestructuring

Charges (a)Cash

Payments

ForeignCurrency

Translation

RemainingAccrual

December 312012

Harsco InfrastructureSegment

Cost to exit activities $ 11,929 $ (805) $ (4,178) $ (155) $ 6,791Employee terminationbenefit costs 211 (208) — (3) —Other 7 (5) — (2) —

Total $ 12,147 $ (1,018) $ (4,178) $ (160) $ 6,791(a) Adjustments to previously recorded restructuring charges resulted from changes in facts and circumstances in

the implementation of these activities.

Prior restructuring programsRestructuring Cost andReserve [Line Items]Schedule of RestructuringReserve by Type of Cost The restructuring accrual for those prior restructuring programs at December 31, 2012 and the

activity for the year then ended are as follows:

(In thousands)

AccrualDecember 31

2011

Adjustmentsto Previously

RecordedRestructuring

Charges (a)Cash

Payments

ForeignCurrency

Translation

RemainingAccrual

December 312012

Harsco Metals &Minerals Segment

Employee terminationbenefit costs $ 1,280 $ (1,263) $ (43) $ 26 $ —Cost to exit activities 727 — (124) (13) 590

Total $ 2,007 $ (1,263) $ (167) $ 13 $ 590

(a) Adjustments to previously recorded restructuring charges resulted from changes in facts and circumstances inthe implementation of these activities.

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12 Months EndedCONSOLIDATEDSTATEMENTS OF

COMPREHENSIVEINCOME (LOSS)

(Parenthetical) (USD $)In Thousands, unlessotherwise specified

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

Net gains (losses) on cash flow hedging instruments, deferred income taxes $ 567 $ (2,126) $ 355Reclassification adjustment for (gain) loss on cash flow hedging instruments,deferred income taxes 0 25 (8)

Pension liability adjustments, deferred income taxes 7,572 19,143 (9,727)Unrealized gain (loss) on marketable securities, deferred income taxes (3) 7 (8)Reclassification adjustment for gain on marketable securities, deferred incometaxes $ 1

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12 Months EndedEmployee Benefit Plans(Details 3) (USD $) Dec. 31,

2012Dec. 31,

2011Dec. 31,

2010Defined Benefit Plan, Assets, Target Allocations [Abstract]Dividends paid $

66,132,000$66,176,000

$66,131,000

U.S. PlansDefined Benefit Plan Disclosure [Line Items]Accumulated benefit obligation 316,400 298,600Defined Benefit Plan, Pension Plans with Accumulated BenefitObligations in Excess of Plan Assets [Abstract]Projected benefit obligation 306,500 288,700Accumulated benefit obligation 306,500 288,700Fair value of plan assets 207,700 198,800Defined Benefit Plan, Assets, Target Allocations [Abstract]Number of capital market results simulated in the model for expectedreturn on plan assets 600

Period for which results of capital markets are simulated 15 yearsExpected long-term rates of return on plan assets 7.80% 7.80% 8.00%Number of shares of Company's common stock included in plan assets 450,000 432,203Value of shares of Company's common stock included in plan assets 10,600,000 9,000,000Dividends paid 400,000Expected long-term rates of return on plan assets for next year (as apercent) 7.50%

Fair values of plan assets 218,084,000209,237,000221,673,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at beginning of year 209,237,000221,673,000Employer contributions 6,254,000 3,055,000Fair value of plan assets at end of year 218,084,000209,237,000221,673,000U.S. Plans | Domestic equity securitiesDefined Benefit Plan, Information about Plan Assets [Abstract]Percentage of Plan Assets at December 31 38.00% 38.00%Defined Benefit Plan, Assets, Target Allocations [Abstract]Target Long-Term Allocation - Minimum 34.00%Target Long-Term Allocation - Maximum 44.00%U.S. Plans | Harsco common stockDefined Benefit Plan, Information about Plan Assets [Abstract]Percentage of Plan Assets at December 31 4.80% 4.30%U.S. Plans | International equity securitiesDefined Benefit Plan, Information about Plan Assets [Abstract]Percentage of Plan Assets at December 31 19.70% 18.00%Defined Benefit Plan, Assets, Target Allocations [Abstract]Target Long-Term Allocation - Minimum 14.00%

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Target Long-Term Allocation - Maximum 24.00%U.S. Plans | Fixed income securitiesDefined Benefit Plan, Information about Plan Assets [Abstract]Percentage of Plan Assets at December 31 30.50% 32.80%Defined Benefit Plan, Assets, Target Allocations [Abstract]Target Long-Term Allocation - Minimum 27.00%Target Long-Term Allocation - Maximum 37.00%U.S. Plans | OtherDefined Benefit Plan, Information about Plan Assets [Abstract]Percentage of Plan Assets at December 31 9.50% 9.30%Defined Benefit Plan, Assets, Target Allocations [Abstract]Target Long-Term Allocation - Minimum 5.00%Target Long-Term Allocation - Maximum 15.00%U.S. Plans | Cash and cash equivalentsDefined Benefit Plan, Information about Plan Assets [Abstract]Percentage of Plan Assets at December 31 2.30% 1.90%Defined Benefit Plan, Assets, Target Allocations [Abstract]Target Long-Term Allocation - Maximum 5.00%U.S. Plans | Level 1Defined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 160,531,000141,553,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 160,531,000141,553,000U.S. Plans | Level 1 | Common stocksDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 42,142,000 39,295,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 42,142,000 39,295,000U.S. Plans | Level 1 | Mutual funds - equitiesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 11,110,000 19,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 11,110,000 19,000U.S. Plans | Level 1 | International equities - mutual fundsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 37,651,000 33,198,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 37,651,000 33,198,000U.S. Plans | Level 1 | U.S. Treasuries and collateralized securitiesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0

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Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 1 | Corporate bonds and notesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 7,539,000 5,507,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 7,539,000 5,507,000U.S. Plans | Level 1 | Mutual funds - bondsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 36,447,000 40,110,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 36,447,000 40,110,000U.S. Plans | Level 1 | Other mutual fundsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 20,667,000 19,392,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 20,667,000 19,392,000U.S. Plans | Level 1 | Cash and cash equivalentsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 4,975,000 4,032,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 4,975,000 4,032,000U.S. Plans | Level 2Defined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 57,553,000 67,684,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 57,553,000 67,684,000U.S. Plans | Level 2 | Common stocksDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 2 | Mutual funds - equitiesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 29,617,000 40,088,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 29,617,000 40,088,000

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U.S. Plans | Level 2 | International equities - mutual fundsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 5,311,000 4,542,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 5,311,000 4,542,000U.S. Plans | Level 2 | U.S. Treasuries and collateralized securitiesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 22,625,000 23,054,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 22,625,000 23,054,000U.S. Plans | Level 2 | Corporate bonds and notesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 2 | Mutual funds - bondsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 2 | Other mutual fundsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 2 | Cash and cash equivalentsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 3Defined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 3 | Common stocksDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0

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Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 3 | Mutual funds - equitiesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 3 | International equities - mutual fundsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 3 | U.S. Treasuries and collateralized securitiesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 3 | Corporate bonds and notesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 3 | Mutual funds - bondsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 3 | Other mutual fundsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0U.S. Plans | Level 3 | Cash and cash equivalentsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0

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U.S. Plans | TotalDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 218,084,000209,237,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 218,084,000209,237,000U.S. Plans | Total | Common stocksDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 42,142,000 39,295,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 42,142,000 39,295,000U.S. Plans | Total | Mutual funds - equitiesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 40,727,000 40,107,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 40,727,000 40,107,000U.S. Plans | Total | International equities - mutual fundsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 42,962,000 37,740,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 42,962,000 37,740,000U.S. Plans | Total | U.S. Treasuries and collateralized securitiesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 22,625,000 23,054,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 22,625,000 23,054,000U.S. Plans | Total | Corporate bonds and notesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 7,539,000 5,507,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 7,539,000 5,507,000U.S. Plans | Total | Mutual funds - bondsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 36,447,000 40,110,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 36,447,000 40,110,000U.S. Plans | Total | Other mutual fundsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 20,667,000 19,392,000

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Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 20,667,000 19,392,000U.S. Plans | Total | Cash and cash equivalentsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 4,975,000 4,032,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 4,975,000 4,032,000International PlansDefined Benefit Plan Disclosure [Line Items]Accumulated benefit obligation 1,055,700 952,800Defined Benefit Plan, Pension Plans with Accumulated BenefitObligations in Excess of Plan Assets [Abstract]Projected benefit obligation 1,040,400 929,100Accumulated benefit obligation 1,029,400 921,000Fair value of plan assets 749,600 673,900Defined Benefit Plan, Assets, Target Allocations [Abstract]Expected long-term rates of return on plan assets 6.70% 7.40% 7.40%Expected long-term rates of return on plan assets for next year (as apercent) 6.60%

Fair values of plan assets 783,059,000714,163,000708,025,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at beginning of year 714,163,000708,025,000Employer contributions 29,713,000 29,300,000Fair value of plan assets at end of year 783,059,000714,163,000708,025,000International Plans | Equity securitiesDefined Benefit Plan, Information about Plan Assets [Abstract]Percentage of Plan Assets at December 31 34.50% 34.70%Defined Benefit Plan, Assets, Target Allocations [Abstract]Target Long-Term Allocation 37.50%International Plans | Fixed income securitiesDefined Benefit Plan, Information about Plan Assets [Abstract]Percentage of Plan Assets at December 31 48.00% 50.00%Defined Benefit Plan, Assets, Target Allocations [Abstract]Target Long-Term Allocation 42.50%International Plans | OtherDefined Benefit Plan, Information about Plan Assets [Abstract]Percentage of Plan Assets at December 31 17.30% 14.90%Defined Benefit Plan, Assets, Target Allocations [Abstract]Target Long-Term Allocation 20.00%International Plans | Cash and cash equivalentsDefined Benefit Plan, Information about Plan Assets [Abstract]Percentage of Plan Assets at December 31 0.20% 0.40%

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Defined Benefit Plan, Assets, Target Allocations [Abstract]Target Long-Term Allocation 0.00%International Plans | Level 1Defined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 1,552,000 2,665,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 1,552,000 2,665,000International Plans | Level 1 | Mutual funds - equitiesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0International Plans | Level 1 | Corporate bonds and notesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0International Plans | Level 1 | Mutual funds - bondsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0International Plans | Level 1 | Insurance contractsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0International Plans | Level 1 | Real estate funds / limited partnershipsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0International Plans | Level 1 | Other mutual fundsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0International Plans | Level 1 | Cash and cash equivalents

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Defined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 1,552,000 2,665,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 1,552,000 2,665,000International Plans | Level 2Defined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 763,761,000699,473,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 763,761,000699,473,000International Plans | Level 2 | Mutual funds - equitiesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 269,789,000247,629,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 269,789,000247,629,000International Plans | Level 2 | Corporate bonds and notesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0International Plans | Level 2 | Mutual funds - bondsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 309,274,000294,010,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 309,274,000294,010,000International Plans | Level 2 | Insurance contractsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 66,900,000 63,169,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 66,900,000 63,169,000International Plans | Level 2 | Real estate funds / limited partnershipsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 31,261,000 31,097,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 31,261,000 31,097,000International Plans | Level 2 | Other mutual fundsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 86,537,000 63,568,000

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Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 86,537,000 63,568,000International Plans | Level 2 | Cash and cash equivalentsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0International Plans | Level 3Defined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 17,746,000 12,025,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 17,746,000 12,025,000International Plans | Level 3 | Mutual funds - equitiesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0International Plans | Level 3 | Corporate bonds and notesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0International Plans | Level 3 | Mutual funds - bondsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0International Plans | Level 3 | Insurance contractsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0International Plans | Level 3 | Real estate funds / limited partnershipsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 17,746,000 12,025,000 10,184,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at beginning of year 12,025,000 10,184,000 10,994,000

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Employer contributions 2,535,000 5,697,000 2,344,000Cash distributions received (1,270,000) (333,000) (636,000)Actual return on plan assets - related to asset still held at end of year 4,456,000 (3,523,000) (2,518,000)Fair value of plan assets at end of year 17,746,000 12,025,000 10,184,000International Plans | Level 3 | Other mutual fundsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0International Plans | Level 3 | Cash and cash equivalentsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0 0International Plans | TotalDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 783,059,000714,163,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 783,059,000714,163,000International Plans | Total | Mutual funds - equitiesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 269,789,000247,629,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 269,789,000247,629,000International Plans | Total | Corporate bonds and notesDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 0Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 0International Plans | Total | Mutual funds - bondsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 309,274,000294,010,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 309,274,000294,010,000International Plans | Total | Insurance contractsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 66,900,000 63,169,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]

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Fair value of plan assets at end of year 66,900,000 63,169,000International Plans | Total | Real estate funds / limited partnershipsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 49,007,000 43,122,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 49,007,000 43,122,000International Plans | Total | Other mutual fundsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 86,537,000 63,568,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year 86,537,000 63,568,000International Plans | Total | Cash and cash equivalentsDefined Benefit Plan, Assets, Target Allocations [Abstract]Fair values of plan assets 1,552,000 2,665,000Defined Benefit Plan, Change in Fair Value of Plan Assets [RollForward]Fair value of plan assets at end of year $ 1,552,000 $ 2,665,000U.K. PlanDefined Benefit Plan, Assets, Target Allocations [Abstract]Pension plan assets as a percentage of international plan assets 85.00%Expected long-term rates of return on plan assets for next year (as apercent) 6.80%

Remaining international plansDefined Benefit Plan, Assets, Target Allocations [Abstract]Pension plan assets as a percentage of international plan assets 15.00%

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12 Months EndedDebt and Credit Agreements(Tables) Dec. 31, 2012

Debt Disclosure [Abstract]Schedule of Line of CreditFacilities

The following table illustrates the amounts outstanding on credit facilities and commercial paperprograms, and available credit at December 31, 2012. These credit facilities and programs aredescribed in more detail below the table.

Summary of Credit Facilities and Commercial Paper Programs at December 31, 2012

(In thousands)FacilityLimit

OutstandingBalance

AvailableCredit

U.S. commercial paper program $ 550,000 $ 39,497 $ 510,503Euro commercial paper program 263,900 — 263,900Multi-year revolving credit facility (a) 525,000 50,000 475,000

Totals $ 1,338,900 $ 89,497 $ 1,249,403 (b)

(a) U.S.-based program.(b) Although the Company has significant available credit, in practice, the Company limits aggregate commercial

paper and credit facility borrowings at any one-time to a maximum of $525 million (the amount of the back-upfacility).

Schedule of Long-term DebtInstruments Long-Term Debt

(In thousands)December 31

2012December 31

2011

5.75% notes due May 15, 2018 $ 447,931 $ 447,6135.125% notes due September 15, 2013 149,875 149,7052.7% notes due October 15, 2015 249,022 248,681Other financing payable in varying amounts due principallythrough 2018 with a weighted-average interest rate of 2.7% and9.4% at December 31, 2012 and 2011, respectively 113,878 11,359

960,706 857,358Less: current maturities (3,278) (3,558)

Total Long-term Debt $ 957,428 $ 853,800

Schedule of Maturities ofLong-term Debt

The maturities of long-term debt for the four years following December 31, 2013 are as follows:

(In thousands)

2014 $ 14,7702015 252,3122016 1,3572017 240,683

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12 Months EndedCapital Stock (Details 2)(USD $)

In Thousands, except Sharedata, unless otherwise

specified

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

Dec. 31,2009

Common StockShares outstanding at the beginning of the period 112,063,938111,931,267 111,611,102111,387,185Treasury Stock, Number of Shares Held 31,479,310 31,454,097 31,097,043 31,034,126Common Stock, Shares, Outstanding 80,584,628 80,477,170 80,514,059 80,353,059Stock Options Exercised (in shares) 38,900 199,032 115,493Vested Restricted Stock Units (in shares) 45,898 121,133 108,424Treasury shares purchased (in shares) 0 286,577 0Other Stock Grants (in shares) 47,873Shares outstanding at the end of the period 112,063,938111,931,267 111,611,102111,387,185Treasury Stock, Number of Shares Held 31,479,310 31,454,097 31,097,043 31,034,126Common Stock, Shares, Outstanding 80,584,628 80,477,170 80,514,059 80,353,059Reconciliation of the average shares of common stock usedto compute basic earnings per common share to the sharesused to compute diluted earnings per common shareIncome (loss) from continuing operations attributable toHarsco Corporation common stockholders (in dollars) $ (253,693) $ (9,447) $ 10,885

Weighted average number of shares outstanding - basic 80,632,000 80,736,000 80,569,000Dilutive effect of stock-based compensation (in shares) 0 0 192,000Weighted average number of shares outstanding - diluted 80,632,000 80,736,000 80,761,000Earnings (loss) from continuing operations per commonshare, attributable to Harsco Corporation commonstockholders:Basic (in dollars per share) $ (3.15) $ (0.12) $ 0.14Diluted (in dollars per share) $ (3.15) $ (0.12) $ 0.13Common Stock TreasuryCommon StockStock Options Exercised (in shares) 0 41,974 24,008Vested Restricted Stock Units (in shares) 14,677 28,503 38,909Treasury shares purchased (in shares) 286,577Other Stock Grants (in shares) 10,536Outstanding SharesCommon StockStock Options Exercised (in shares) 38,900 157,058 91,485Vested Restricted Stock Units (in shares) 31,221 92,630 69,515Treasury shares purchased (in shares) (286,577)Other Stock Grants (in shares) 37,337

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12 Months EndedStock-Based Compensation Dec. 31, 2012Disclosure of CompensationRelated Costs, Share-basedPayments [Abstract]Stock-Based Compensation Stock-Based Compensation

The 1995 Executive Incentive Compensation Plan, as amended, authorizes the issuance of up to8,000,000 shares of the Company's common stock for use in paying incentive compensationawards in the form of stock options or other equity awards such as restricted stock, restrictedstock units or stock appreciation rights. The 1995 Non-Employee Directors' Stock Plan authorizesthe issuance of up to 600,000 shares of the Company's common stock for equity awards. Bothplans have been approved by the Company's stockholders. At December 31, 2012, there were1,165,744 and 186,190 shares available for granting equity awards under the 1995 ExecutiveIncentive Compensation Plan and the 1995 Non-Employee Directors' Stock Plan, respectively.

Restricted Stock UnitsThe Board approves the granting of performance-based restricted stock units as the long-termequity component of director, officer and certain key employee compensation. The restrictedstock units require no payment from the recipient and compensation cost is measured based onthe market price on the grant date and is generally recorded over the vesting period. The vestingperiod for restricted stock units granted to non-employee directors is one year, and each restrictedstock unit is exchanged for a like number of shares of Company stock following the terminationof the participant's service as a director. Generally, restricted stock units granted to officers andcertain key employees prior to 2012 vest on a pro rata basis over a three-year period, and thespecified retirement age is 62. Restricted stock units granted in March and May of 2012 "cliff"vest at the end of three years, and the specified retirement age is 62. Upon vesting, each restrictedstock unit is exchanged for a like number of new shares of the Company's stock. Restricted stockunits do not have an option for cash payment.

The following table summarizes restricted stock units issued and the compensation expenserecorded for 2012, 2011 and 2010:

Stock-Based Compensation Expense

Expense(Dollars in thousands,except per unit)

RestrictedStock Units

Fair Valueper Unit 2012 2011 2010

Directors:May 1, 2009 16,000 27.28 $ — $ — $ 145May 3, 2010 16,000 30.99 — 165 331May 2, 2011 20,192 34.79 234 468 —May 2, 2012 27,930 21.58 402 — —December 4, 2012 2,688 19.95 — — —

Employees:January 23, 2007 101,700 38.25 — — 41January 22, 2008 130,950 45.95 — 68 1,601January 27, 2009 106,625 25.15 43 614 667November 19, 2009 15,000 31.90 — 12 298January 25, 2010 1,000 31.49 1 10 20September 22, 2010 25,000 23.47 20 373 194

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April 26, 2011 3,750 32.10 44 29 —September 20, 2011 13,500 21.18 151 111 —January 23, 2012 30,000 17.81 168 — —March 16, 2012 44,268 21.39 130 — —May 4, 2012 56,233 17.34 213 — —September 10, 2012 5,985 19.05 11 — —November 16, 2012 5,000 16.45 3 — —

Total $ 1,420 $ 1,850 $ 3,297

Restricted stock unit activity for 2012, 2011 and 2010 was as follows:

RestrictedStock Units

WeightedAverage

Grant-DateFair Value

Nonvested at January 1, 2010 229,491 $ 34.45Granted 42,000 26.53Vested (124,424) 35.81Forfeited (6,532) 35.23Nonvested at December 31, 2010 140,535 30.83Granted 37,442 29.61Vested (113,136) 33.55Forfeited (2,200) 25.15Nonvested at December 31, 2011 62,641 25.39Granted 172,104 19.23Vested (67,861) 24.86Forfeited (25,411) 20.35

Nonvested at December 31, 2012 141,473 $ 19.19

At December 31, 2012, the total unrecognized compensation cost related to nonvested restrictedstock units was $1.9 million, which will be recognized over a weighted-average period ofapproximately two years.

Stock OptionsFrom time to time, the Company may grant incentive stock options and nonqualified stockoptions to officers, certain key employees and non-employee directors under the two plans notedabove. The stock options would generally vest three years from the date of grant, which is thedate the Board of Directors approved the grants, and expire no later than ten years after the dateof grant. The exercise price of the stock would be fair value on the grant date. Upon exercise, anew share of Company stock is issued for each option.

Stock option activity for 2012, 2011 and 2010 was as follows:

SharesUnderOption

WeightedAverage

Exercise Price

AggregateIntrinsic

Value(in

millions)(a)

Outstanding, January 1, 2010 389,970 $ 15.66 $ 6.7Exercised (115,493) 13.77 —Expired (805) 16.33 —Outstanding, December 31, 2010 273,672 16.46 3.3

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Granted 617,500 31.75 —Exercised (199,032) 15.95 —Forfeited/Expired (30,300) 30.92 —Outstanding, December 31, 2011 661,840 30.22 0.2Exercised (38,900) 18.23 —Forfeited/Expired (294,940) 31.29 —

Outstanding, December 31, 2012 328,000 $ 30.67 $ 0.2(a) Intrinsic value is defined as the difference between the current market value and the exercise price, for those

options where the market price exceeds the exercise price.

In January 2011, 617,500 stock options were granted. The Company used a binomial latticemodel to estimate the fair value of $10.90 for this stock-based award. The fair value wasestimated with the following assumptions: Dividend yield—2.5%; Volatility—40.6%; Risk-freeinterest rate—0.6%; and Expected life—seven years. These assumptions are based on multiplefactors, including the historical volatility of the Company's stock price. The options vest threeyears from the grant date and expire seven years after the grant date. No compensation expensewas recognized in 2012 for stock options due to forfeitures. Compensation expense recognized in2011 for stock options totaled $2.0 million. No compensation expense was recognized in 2010.

At December 31, 2012, the total unrecognized compensation cost related to nonvested stockoptions was $1.1 million, which is expected to be recognized over a period of approximately oneyear.

Net cash proceeds from the exercise of stock options totaled $0.7 million, $2.4 million and $1.0million in 2012, 2011 and 2010, respectively.

The total intrinsic value of options exercised during 2012, 2011 and 2010 was $0.1 million, $2.2million and $1.7 million, respectively.

The following table summarizes information concerning outstanding and exercisable options atDecember 31, 2012:

Options Outstanding Options Exercisable

Range ofExercisablePrices Vested Unvested

WeightedAverageExercisePrice Per

Share

WeightedAverage

RemainingContractual

Life inYears

NumberExercisable

WeightedAverageExercisePrice Per

Share

$16.96 -$16.96 24,000 — $ 16.96 0.33 24,000 $ 16.96$31.75 -$31.75 — 304,000 31.75 5.07 — —

24,000 304,000 $ 30.67 4.72 24,000 $ 16.96

At December 31, 2012, outstanding options, substantially all of which are expected to vest, havea weighted-average remaining contractual life of 4.72 years and an aggregate intrinsic value of$0.2 million. Vested and currently exercisable options have a weighted-average remainingcontractual life of 0.33 years and an aggregate intrinsic value of $0.2 million.

Weighted-average grant-date fair value of unvested options during the year ended December 31,2012 was as follows:

Shares UnderOption

WeightedAverage

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Grant-DateFair Value

Outstanding, January 1, 2012 589,000 $ 10.90Forfeited (285,000) 10.90

Outstanding, December 31, 2012 304,000 $ 10.90

Stock Appreciation RightsDuring 2012, the Company issued Stock Appreciation Rights ("SARs") covering 318,452 sharesin March, 345,502 shares in May and 43,058 shares in September under the 1995 ExecutiveIncentive Compensation Plan to officers and key executive employees.

The fair value of each SAR grant was estimated on the date of grant using a Black-Scholespricing model with the following assumptions:

March 2012Grant

May 2012Grant

September2012 Grant

Risk-free interest rate 1.56% 1.18% 1.00%Dividend yield 3.50% 4.20% 3.80%Expected life (years) 6.5 6.5 6.5Volatility 43.9% 44.0% 44.3%SAR grant price $ 23.73 $ 19.65 $ 21.37Fair value of SAR award $ 6.10 $ 4.77 $ 6.20

A summary of activity relating to SARs for the year ended December 31, 2012 was as follows:

SARs

Number ofShares

WeightedAverage

Exercise Price

AggregateIntrinsicValue (inmillions)

WeightedAverage

RemainingContractualTerm (Years)

Outstanding, January 1, 2012 — $ — $ —Granted 707,012 21.23Forfeited/expired (181,725) 21.23

Outstanding, December 31, 2012 525,287 $ 21.23 $ 1.2 9.3

No SARs are vested or exercisable at December 31, 2012.

Unrecognized compensation expense related to SARs not yet exercisable was $2.3 million atDecember 31, 2012. This cost is expected to be recognized over a weighted average period ofapproximately 4.3 years.

Other Stock GrantsDuring 2012, the Company issued 43,873 shares to its then Interim Chief Executive Officer aspart of his compensation agreement. In addition, 4,000 shares were issued to other employeesunder incentive award programs. All shares vested immediately and were not subject to anyholding period restrictions. Fair value of the grants were based on the market price of Companystock at the grant date. Expense recognized in 2012 for these grants total $1.0 million.

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There was no change, a $1.1 million increase and a $0.1 million decrease of excess tax benefitsprincipally from restricted stock units recognized in 2012, 2011 and 2010, respectively.

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12 Months EndedLeases (Tables) Dec. 31, 2012Leases [Abstract]Schedule of Future Minimum Rental Payments forOperating Leases

Future minimum payments under operating leases with noncancelableterms are as follows:

(in thousands)

2013 $ 41,8812014 31,7762015 22,5582016 16,5182017 11,757After 2017 11,070

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12 Months EndedInformation by Segment andGeographic Area Dec. 31, 2012

Segment Reporting[Abstract]Information by Segment andGeorgraphic Area

Information by Segment and Geographic Area

The Company reports information about its operating segments using the "managementapproach," which is based on the way management organizes and reports the segments within theenterprise for making operating decisions and assessing performance. The Company's reportablesegments are identified based upon differences in products, services and markets served.

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

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

Harsco Infrastructure SegmentMajor services include project engineering and equipment installation, as well as the sale andrental of scaffolding, shoring and concrete forming systems for industrial maintenance and capitalimprovement projects, civil infrastructure projects, non-residential construction, and internationalmulti-dwelling residential construction projects. Services are provided to industrial andpetrochemical plants; the infrastructure construction, repair and maintenance markets;commercial and industrial construction contractors; and public utilities.

Harsco Rail SegmentThis segment manufactures railway track maintenance equipment and provides track maintenanceservices. The major customers include private and government-owned railroads and urban masstransit systems worldwide.

Harsco Industrial SegmentMajor products include industrial grating; air-cooled heat exchangers; and boilers and waterheaters. Major customers include industrial plants and the non-residential, commercial and publicconstruction and retrofit markets; and the natural gas exploration and processing industry.

Other InformationThe measurement basis of segment profit or loss is operating income (loss). There are nosignificant inter-segment sales. Corporate assets include principally cash, prepaid taxes, fair valueof derivative instruments and U.S. deferred income taxes. Countries with revenues from

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unaffiliated customers and net property, plant and equipment of ten percent or more of theconsolidated totals (in at least one period presented) are as follows:

Information by Geographic Area (a)

Revenues from Unaffiliated Customers Property, Plant and Equipment, Net

Twelve Months Ended Balances at

December 31 December 31

(In thousands) 2012 2011 2010 2012 2011 2010

United States $1,108,051 $1,087,454 $1,010,290 $ 242,890 $ 276,966 $ 291,470UnitedKingdom 331,894 398,222 420,458 115,775 114,521 141,014All Other 1,606,073 1,817,064 1,607,930 907,560 882,997 934,489TotalsincludingCorporate $3,046,018 $3,302,740 $3,038,678 $1,266,225 $1,274,484 $1,366,973(a) Revenues are attributed to individual countries based on the location of the facility generating the revenue.

In 2012, 2011 and 2010, sales to one customer, ArcelorMittal, principally in the Harsco Metals &Minerals Segment, were $283.3 million, $361.9 million and $359.0 million, respectively. For2011 and 2010, these amounts represented more than 10% of the Company's consolidatedrevenues. These revenues were provided under multiple long-term contracts at several mill sites.In addition, the Harsco Metals & Minerals Segment is dependent largely on the global steelindustry, and in 2012, 2011 and 2010 there were two customers, including ArcelorMittal, thateach provided in excess of 10% of this Segment's revenues under multiple long-term contracts atseveral mill sites. The loss of any one of these contracts would not have a material adverse impactupon the Company's financial position or cash flows; however, it could have a material effect onquarterly or annual results of operations. Additionally, consolidation in the global steel industryhas increased the Company's exposure to these customers. Should additional consolidations occurinvolving some of the steel industry's larger companies which are customers of the Company, itwould result in an increase in concentration of credit risk for the Company.

In the fourth quarter of 2012, the Company recorded a non-cash goodwill impairment charge of$265.0 million related to the Harsco Infrastructure Segment. See Note 6, Goodwill and OtherIntangibles, for additional disclosure regarding the goodwill impairment charge.

In the fourth quarter of 2011, the Company implemented the 2011/2012 Restructuring Program tofurther optimize rental assets and sales inventories in the Harsco Infrastructure Segment; reducethe number of administrative locations in the Harsco Infrastructure Segment and Harsco Metals &Minerals Segment; and reduce the global workforce in the Harsco Infrastructure and HarscoMetals & Minerals Segments. The Harsco Infrastructure Segment and Harsco Metals & MineralsSegment recorded pre-tax charges of $88.6 million and $5.5 million respectively, for the 2011/2012 Restructuring Program in 2012. The Harsco Infrastructure Segment and Harsco Metals &Minerals Segment recorded pre-tax charges of $87.6 million and $12.8 million respectively, forthe 2011/2012 Restructuring Program in 2011.

In the fourth quarter of 2010, the Harsco Infrastructure Segment implemented the Fourth Quarter2010 Harsco Infrastructure Program as a countermeasure to global economic and financialconditions that adversely affected the Company's end markets. This Segment recorded net pre-taxcharges of $84.4 million related to this restructuring initiative. See Note 18, RestructuringPrograms, for additional disclosure regarding these restructuring programs.

Operating Information by Segment:

Twelve Months Ended

December 31

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(In thousands) 2012 2011 2010

RevenuesHarsco Metals & Minerals $ 1,404,103 $ 1,588,302 $ 1,461,531Harsco Infrastructure 937,293 1,108,293 1,031,807Harsco Rail 352,036 300,029 313,262Harsco Industrial 352,586 306,116 231,898Corporate — — 180

Total Revenues $ 3,046,018 $ 3,302,740 $ 3,038,678

Operating Income (Loss)Harsco Metals & Minerals $ 85,523 $ 109,593 $ 117,915Harsco Infrastructure (368,657) (125,555) (145,346)Harsco Rail 56,079 58,746 66,124Harsco Industrial 60,160 50,656 42,871Corporate (7,895) (5,791) (3,133)

Total Operating Income (Loss) $ (174,790) $ 87,649 $ 78,431

Total AssetsHarsco Metals & Minerals $ 1,561,973 $ 1,537,538 $ 1,541,117Harsco Infrastructure 1,018,979 1,371,143 1,534,379Harsco Rail 188,348 213,410 208,338Harsco Industrial 81,035 80,784 58,918Corporate 125,634 136,002 126,468

Total Assets $ 2,975,969 $ 3,338,877 $ 3,469,220

Depreciation and AmortizationHarsco Metals & Minerals $ 163,137 $ 183,784 $ 180,306Harsco Infrastructure 89,814 107,621 114,861Harsco Rail 10,116 10,133 11,110Harsco Industrial 3,098 2,805 2,832Corporate 5,952 6,098 6,130

Total Depreciation and Amortization $ 272,117 $ 310,441 $ 315,239

Capital ExpendituresHarsco Metals & Minerals $ 189,358 $ 212,009 $ 123,153Harsco Infrastructure 63,137 88,456 54,858Harsco Rail 4,133 4,497 9,498Harsco Industrial 3,669 4,938 1,722Corporate 4,726 3,201 3,117

Total Capital Expenditures $ 265,023 $ 313,101 $ 192,348

Reconciliation of Segment Operating Income (Loss) to Consolidated Income FromContinuing Operations Before Income Taxes and Equity Income:

Twelve Months Ended

December 31

(In thousands) 2012 2011 2010

Segment operating income (loss) $ (166,895) $ 93,440 $ 81,564General Corporate expense (7,895) (5,791) (3,133)Operating income (loss) from continuing operations (174,790) 87,649 78,431

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Interest income 3,676 2,751 2,668Interest expense (47,381) (48,735) (60,623)Income (loss) from continuing operations beforeincome taxes and equity income $ (218,495) $ 41,665 $ 20,476

Information about Products and Services:

Revenues from Unaffiliated Customers

Twelve Months Ended

December 31

(In thousands) 2012 2011 2010

Product GroupOutsourced, on-site services to steel mills and othermetals producers and resource recovery technologiesfor the re-use of industrial waste stream by-products $ 1,333,248 $ 1,518,902 $ 1,393,794Engineered scaffolding, concrete forming andshoring, and other access-related services, rentals andsales 937,293 1,108,293 1,031,807Railway track maintenance services and equipment 352,036 300,029 313,262Air-cooled heat exchangers 175,896 142,960 112,170Industrial grating products 136,157 113,388 76,975Industrial abrasives and roofing granules 70,855 69,399 67,737Heat transfer products 40,533 49,769 42,753General Corporate — — 180

Consolidated Revenues $ 3,046,018 $ 3,302,740 $ 3,038,678

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1 MonthsEnded 12 Months EndedStock-Based Compensation

(Stock Options) (Details)(USD $) Jan. 31,

2011

Dec. 31,2012plan

Dec. 31,2011

Dec. 31,2010

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]Number of plans 2Shares Under OptionOutstanding at the beginning of the period (in shares) 273,672 661,840 273,672 389,970Granted (in shares) 617,500Exercised (in shares) (38,900) (199,032) (115,493)Expired (in shares) (30,300) (805)Forfeited/Expired (in shares) (294,940)Outstanding, at the end of the period (in shares) 328,000 661,840 273,672Weighted Average Exercise PriceOutstanding at the beginning of the period (in dollars pershare) $ 16.46 $ 30.22 $ 16.46 $ 15.66

Granted (in dollars per share) $ 31.75Exercised (in dollars per share) $ 18.23 $ 15.95 $ 13.77Expired (in dollars per share) $ 30.92 $ 16.33Cancelled/Expired (in dollars per share) $ 31.29Outstanding at the end of the period (in dollars per share) $ 30.67 $ 30.22 $ 16.46Aggregate Intrinsic ValueIntrinsic value, Outstanding at the beginning of the period $

3,300,000[1] $ 200,000 [1] $

3,300,000[1] $

6,700,000[1]

Intrinsic value of options exercised 100,000 2,200,000 1,700,000Intrinsic value, Outstanding at the end of the period 200,000 [1] 200,000 [1] 3,300,000 [1]

Number of options granted (in shares) 617,500Fair value (in dollars per share) $ 10.90Fair value assumptionsProceeds from stock options exercised 725,000 2,403,000 997,000Stock optionsShare-based Compensation Arrangement by Share-based Payment Award [Line Items]Vesting period (in years) 3 years 3 yearsExpiration period (in years) 7 yearsFair value assumptionsDividend yield (as a percent) 2.50%Volatility (as a percent) 40.60%Risk-free interest rate (as a percent) 0.60%Expected life 7 yearsRecognized stock-based compensation expense 2,000,000 0

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Unrecognized stock-based compensation expense $1,100,000

Unrecognized stock-based compensation expense, period ofrecognition 1 year

Stock options | MaximumShare-based Compensation Arrangement by Share-based Payment Award [Line Items]Expiration period (in years) 10 years[1] Intrinsic value is defined as the difference between the current market value and the exercise price, for those

options where the market price exceeds the exercise price.

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12 Months EndedCONSOLIDATEDSTATEMENTS OF CASH

FLOWS (USD $)In Thousands, unlessotherwise specified

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

Cash flows from operating activities:Net income (loss) $ (254,101) $ (9,556) $ 12,459Adjustments to reconcile net income (loss) to net cash provided byoperating activities:Depreciation 251,905 276,021 279,234Amortization 20,212 34,420 36,005Deferred income tax expense (benefit) (10,708) 20,826 (26,617)Equity in income of unconsolidated entities, net (564) (690) (390)Dividends or distributions from unconsolidated entities 308 226 176Harsco Infrastructure Segment 2010 Restructuring Program non-cashadjustment 0 0 43,158

Harsco 2011/2012 Restructuring Program non-cash adjustment 31,443 67,320 0Goodwill impairment charge 265,038 0 0Other, net (27,098) (7,432) (20,629)Changes in assets and liabilities, net of acquisitions and dispositions ofbusinesses:Accounts receivable 22,016 (58,011) 4,395Inventories 2,365 7,976 12,599Accounts payable (37,649) (2,713) 36,529Accrued interest payable (319) (375) (2,615)Accrued compensation 517 12,554 16,305Harsco Infrastructure Segment 2010 Restructuring Program accrual (5,211) (19,629) 29,817Harsco 2011/2012 Restructuring Program accrual (7,883) 30,471 0Other assets and liabilities (51,392) (52,632) (18,999)Net cash provided by operating activities 198,879 298,776 401,427Cash flows from investing activities:Purchases of property, plant and equipment (265,023) (313,101) (192,348)Proceeds from sales of assets 49,779 42,653 22,663Purchase of businesses, net of cash acquired (740) (1,938) (27,643)Other investing activities, net (3,284) 16,564 (4,695)Net cash used by investing activities (219,268) (255,822) (202,023)Cash flows from financing activities:Short-term borrowings, net (43,464) 21,637 (25,706)Current maturities and long-term debt:Additions 285,850 301,515 747,213Reductions (184,372) (297,854) (821,038)Cash dividends paid on common stock (66,068) (66,146) (65,976)Dividends paid to noncontrolling interests (2,605) (4,171) (5,850)Purchase of noncontrolling interests 0 0 (1,159)

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Contributions from noncontrolling interests 8,097 8,851 698Common stock issued-options 725 2,403 997Common stock acquired for treasury 0 (5,788) 0Other financing activities, net (2,709) (1) (700)Net cash used by financing activities (4,546) (39,554) (171,521)Effect of exchange rate changes on cash (999) (6,454) 2,171Net increase (decrease) in cash and cash equivalents (25,934) (3,054) 30,054Cash and cash equivalents at beginning of period 121,184 124,238 94,184Cash and cash equivalents at end of period 95,250 121,184 124,238Purchase of businesses, net of cash acquiredWorking capital, other than cash 0 0 (1,918)Propery, plant and equipment 0 (1,394) (15,600)Other noncurrent assets and liabilites, net (740) (544) (10,125)Net cash used to acquire businesses $ (740) $ (1,938) $ (27,643)

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CONSOLIDATEDBALANCE SHEETS

(Parenthetical) (USD $)Dec. 31, 2012 Dec. 31, 2011

Common Stock, Par or Stated Value Per Share $ 1.25 $ 1.25Common Stock, Shares, Issued 112,063,938 111,931,267Treasury Stock, Shares 31,479,310 35,454,097

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12 Months EndedLeases Dec. 31, 2012Leases [Abstract]Leases Leases

The Company leases certain property and equipment under noncancelable operating leases.Rental expense under such operating leases was $54.9 million, $66.1 million and $62.9 million in2012, 2011 and 2010, respectively.

Future minimum payments under operating leases with noncancelable terms are as follows:

(in thousands)

2013 $ 41,8812014 31,7762015 22,5582016 16,5182017 11,757After 2017 11,070

Total minimum rentals to be received in the future under noncancelable subleases atDecember 31, 2012 are $7.4 million.

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12 Months EndedDocument and EntityInformation (USD $) Dec. 31, 2012 Jan. 31, 2013 Jun. 30, 2012

Document And Entity Information [Abstract]Entity Registrant Name HARSCO CORPEntity Central Index Key 0000045876Current Fiscal Year End Date --12-31Entity Filer Category Large Accelerated FilerDocument Type 10-KDocument Period End Date Dec. 31, 2012Document Fiscal Year Focus 2012Document Fiscal Period Focus FYAmendment Flag falseEntity Common Stock, Shares Outstanding 80,648,786Entity Well-known Seasoned Issuer YesEntity Voluntary Filers NoEntity Current Reporting Status YesEntity Public Float $ 1,641,906,000

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12 Months EndedEmployee Benefit Plans Dec. 31, 2012Compensation andRetirement Disclosure[Abstract]Employee Benefit Plans Employee Benefit Plans

Pension BenefitsThe Company has defined benefit pension retirement plans covering a substantial number of itsemployees. The defined benefits for salaried employees generally are based on years of service andthe employee's level of compensation during specified periods of employment. Defined benefit planscovering hourly employees generally provide benefits of stated amounts for each year of service. Themultiemployer plans in which the Company participates provide benefits to certain unionizedemployees. The Company's funding policy for qualified plans is consistent with statutory regulationsand customarily equals the amount deducted for income tax purposes. The Company also makesperiodic voluntary contributions as recommended by its pension committee. The Company's policy isto amortize prior service costs of defined benefit pension plans over the average future service periodof active plan participants.

For most U.S. defined benefit pension plans and a majority of international defined benefit pensionplans, accrued service is no longer granted. In place of these plans, the Company has establisheddefined contribution pension plans providing for the Company to contribute a specified matchingamount for participating employees' contributions to the plan. For U.S. employees, this match is madeon employee contributions up to 4% of their eligible compensation. Additionally, the Company mayprovide a discretionary contribution of up to 2% of compensation for eligible employees. Thisdiscretionary amount has not been provided for the years 2012, 2011 and 2010. For non-U.S.employees, this match is up to 6% of eligible compensation with an additional 2% going towardsinsurance and administrative costs.

Net periodic pension cost for U.S. and international pension plans for 2012, 2011 and 2010 is asfollows:

U.S. Plans International Plans

(In thousands) 2012 2011 2010 2012 2011 2010

Defined benefitplans:

Service cost $ 1,887 $ 1,557 $ 2,086 $ 3,418 $ 4,350 $ 4,052Interest cost 12,780 13,468 14,049 46,174 48,768 47,558Expectedreturn onplan assets (15,617) (16,480) (16,632) (45,050) (52,735) (46,079)Recognizedprior servicecosts 224 245 339 397 424 327Recognizedlosses 4,637 2,982 2,537 15,194 11,332 12,077Amortizationof transitionliability — — — 8 43 45Settlement/curtailmentloss (gain) 1,510 — 179 (2,589) 183 (210)

Defined benefitplans pensioncost 5,421 1,772 2,558 17,552 12,365 17,770

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Multiemployerplans 10,186 13,264 10,924 5,539 6,547 6,396Definedcontributionplans 5,066 5,434 5,918 12,770 14,157 13,298

Net periodicpension cost $ 20,673 $ 20,470 $ 19,400 $ 35,861 $ 33,069 $ 37,464

The change in the financial status of the pension plans and amounts recognized on the ConsolidatedBalance Sheets at December 31, 2012 and 2011 are as follows:

U.S. Plans International Plans

(In thousands) 2012 2011 2012 2011

Change in benefit obligation:Benefit obligation at beginning of year $ 298,769 $ 264,969 $ 968,218 $ 883,342Service cost 1,887 1,557 3,418 4,350Interest cost 12,780 13,468 46,174 48,768Plan participants' contributions — — 830 986Amendments — — 60 598Actuarial loss 27,803 40,730 65,379 79,474Settlements/curtailments (3,029) — (9,506) (1,886)Benefits paid (21,762) (21,955) (44,968) (37,653)Effect of foreign currency — — 39,181 (10,332)Other — — (36) 571

Benefit obligation at end of year $ 316,448 $ 298,769 $ 1,068,750 $ 968,218

Change in plan assets:Fair value of plan assets at beginning ofyear $ 209,237 $ 221,673 $ 714,163 $ 708,025Actual return on plan assets 27,429 6,464 58,194 19,488Employer contributions 6,254 3,055 29,713 29,300Plan participants' contributions — — 830 986Settlements/curtailments (3,074) — (3,885) (1,127)Benefits paid (21,762) (21,955) (43,954) (36,631)Effect of foreign currency — — 27,998 (6,449)Other — — — 571

Fair value of plan assets at end of year $ 218,084 $ 209,237 $ 783,059 $ 714,163

Funded status at end of year $ (98,364) $ (89,532) $ (285,691) $ (254,055)

Amounts recognized on the Consolidated Balance Sheets consist of the following at December 31,2012 and 2011:

U.S. Plans International Plans

(In thousands)December 31

2012December 31

2011December 31

2012December 31

2011

Noncurrent assets $ 490 $ 397 $ 5,892 $ 4,372Current liabilities (2,531) (2,076) (1,048) (1,011)Noncurrent liabilities (96,323) (87,853) (290,535) (257,416)

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Accumulated other comprehensive lossbefore tax 159,094 149,429 469,949 417,406

Amounts recognized in Accumulated other comprehensive loss, before tax, consist of the following atDecember 31, 2012 and 2011:

U.S. Plans International Plans

(In thousands) 2012 2011 2012 2011

Net actuarial loss $ 158,579 $ 148,690 $ 467,438 $ 414,203Prior service cost 515 739 2,511 3,105Transition obligation — — — 98

Total $ 159,094 $ 149,429 $ 469,949 $ 417,406

The estimated amounts that will be amortized from accumulated other comprehensive loss intodefined benefit net periodic pension cost in 2013 are as follows:

(In thousands) U.S. PlansInternational

Plans

Net actuarial loss $ 5,052 $ 17,180Prior service cost 143 367

Total $ 5,195 $ 17,547

The Company's estimate of expected contributions to be paid in year 2013 for the U.S. defined benefitplans is $2.8 million and for the international defined benefit plans is $31.3 million.

Future Benefit PaymentsThe expected benefit payments for defined benefit plans over the next 10 years are as follows:

(In millions) 2013 2014 2015 2016 2017 2018-2022

U.S. Plans $ 19.7 $ 18.7 $ 18.5 $ 18.8 $ 18.5 $ 92.7InternationalPlans 46.1 47.6 49.5 51.6 54.1 296.1

Net Periodic Pension Cost AssumptionsThe weighted-average actuarial assumptions used to determine the net periodic pension cost for 2012,2011 and 2010 were as follows:

U.S. PlansDecember 31

International PlansDecember 31

Global Weighted-AverageDecember 31

2012 2011 2010 2012 2011 2010 2012 2011 2010

Discount rates 4.4% 5.3% 5.9% 4.8% 5.5% 5.7% 4.7% 5.4% 5.8%Expectedlong-termrates of returnon plan assets 7.8% 7.8% 8.0% 6.7% 7.4% 7.4% 6.9% 7.5% 7.5%Rates ofcompensationincrease 3.0% 3.0% 3.0% 3.4% 3.3% 3.6% 3.4% 3.3% 3.6%

The expected long-term rates of return on plan assets for the 2013 net periodic pension cost are 7.5%for the U.S. plans and 6.6% for the international plans. The expected global long-term rate of return onassets for 2013 is 6.8%.

Defined Benefit Pension Obligation Assumptions

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The weighted-average actuarial assumptions used to determine the defined benefit pension planobligations at December 31, 2012 and 2011 were as follows:

U.S. Plans International PlansGlobal Weighted-

Average

December 31 December 31 December 31

2012 2011 2012 2011 2012 2011

Discount rates 3.8% 4.4% 4.3% 4.8% 4.2% 4.7%Rates of compensation increase 3.0% 3.0% 2.8% 3.4% 2.8% 3.4%

The U.S. discount rate was determined using a yield curve that was produced from a universecontaining approximately 650 U.S. dollar-denominated, AA-graded corporate bonds, all of whichwere noncallable (or callable with make-whole provisions), and excluding the 10% of the bonds withthe highest yields and the 10% with the lowest yields within each maturity group. The discount ratewas then developed as the level-equivalent rate that would produce the same present value as thatusing spot rates to discount the projected benefit payments. For international plans, the discount rate isaligned to corporate bond yields in the local markets, normally AA-rated corporations. The processand selection seeks to approximate the cash inflows with the timing and amounts of the expectedbenefit payments.

Accumulated Benefit ObligationThe accumulated benefit obligation for all defined benefit pension plans at December 31, 2012and 2011 was as follows:

U.S. Plans International Plans

December 31 December 31

(In millions) 2012 2011 2012 2011

Accumulated benefit obligation $ 316.4 $ 298.6 $ 1,055.7 $ 952.8

Plans with Accumulated Benefit Obligation in Excess of Plan AssetsThe projected benefit obligation, accumulated benefit obligation and fair value of plan assets forpension plans with accumulated benefit obligations in excess of plan assets at December 31, 2012and 2011 were as follows:

U.S. Plans International Plans

(In millions)December 31

2012December 31

2011December 31

2012December 31

2011

Projected benefit obligation $ 306.5 $ 288.7 $ 1,040.4 $ 929.1Accumulated benefit obligation 306.5 288.7 1,029.4 921.0Fair value of plan assets 207.7 198.8 749.6 673.9

The asset allocations attributable to the Company's U.S. defined benefit pension plans atDecember 31, 2012 and 2011, and the long-term target allocation of plan assets, by asset category, areas follows:

U.S. PlansPercentage of Plan Assets at

December 31

Asset Category

Target Long-Term

Allocation 2012 2011

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Domestic equity securities 34%-44% 38.0% 38.0%International equity securities 14%-24% 19.7% 18.0%Fixed income securities 27%-37% 30.5% 32.8%Cash and cash equivalents Less than 5% 2.3% 1.9%Other 5%-15% 9.5% 9.3%

Plan assets are allocated among various categories of equities, fixed income securities and cash andcash equivalents with professional investment managers whose performance is actively monitored.The primary investment objective is long-term growth of assets in order to meet present and futurebenefit obligations. The Company periodically conducts an asset/liability modeling study andaccordingly adjusts investments among and within asset categories to ensure the long-term investmentstrategy is aligned with the profile of benefit obligations.

The Company reviews the long-term expected return on asset assumption on a periodic basis takinginto account a variety of factors including the historical investment returns achieved over a long-termperiod, the targeted allocation of plan assets and future expectations based on a model of asset returnsfor an actively managed portfolio, inflation and administrative/other expenses. The model simulates600 different capital market results over 15 years. For 2013 and 2012, the expected return-on-assetassumption for U.S. plans was 7.5% and 7.8%, respectively.

The U.S. defined benefit pension plans assets include 450,000 shares of the Company's stock valued at$10.6 million at December 31, 2012 and 432,203 shares of the Company's common stock valued at$9.0 million at December 31, 2011. These shares represented 4.8% and 4.3% of total plan assets atDecember 31, 2012 and 2011, respectively. Dividends paid to the pension plans on the Company'sstock amounted to $0.4 million in 2012, 2011 and 2010.

The asset allocations attributable to the Company's international defined benefit pension plans atDecember 31, 2012 and 2011 and the long-term target allocation of plan assets, by asset category, areas follows:

Percentage of Plan Assets atDecember 31

International Plans Asset Category

Target Long-Term

Allocation 2012 2011

Equity securities 37.5% 34.5% 34.7%Fixed income securities 42.5% 48.0% 50.0%Cash and cash equivalents — 0.2% 0.4%Other 20.0% 17.3% 14.9%

Plan assets at December 31, 2012 in the U.K. defined benefit pension plan amounted to 85% of theinternational pension assets. These assets are allocated among various categories of equities, fixedincome securities and cash and cash equivalents with professional investment managers whoseperformance is actively monitored. The primary investment objective is long-term growth of assets inorder to meet present and future benefit obligations. The Company periodically conducts asset/liabilitymodeling studies and accordingly adjusts investment amounts within asset categories to ensure thelong-term investment strategy is aligned with the profile of benefit obligations.

For the international long-term rate of return assumption, the Company considered the current level ofexpected returns in risk-free investments (primarily government bonds), the historical level of the riskpremium associated with other asset classes in which the portfolio is invested and the expectations forfuture returns of each asset class and plan expenses. The expected return for each asset class was thenweighted based on the target asset allocation to develop the expected long-term rate of return on

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assets. For both 2013 and 2012, the expected return on asset assumption for the U.K. plan is 6.8%.The remaining international pension plans, with assets representing 15% of the international pensionassets, are under the guidance of professional investment managers and have similar investmentobjectives.

The fair values of the Company's U.S. pension plans' assets at December 31, 2012 by asset class are asfollows:

(In thousands) Total Level 1 Level 2 Level 3

Domestic equities:Common stocks $ 42,142 $ 42,142 $ — $ —Mutual funds—equities 40,727 11,110 29,617 —

International equities—mutual funds 42,962 37,651 5,311 —Fixed income investments:

U.S. Treasuries and collateralizedsecurities 22,625 — 22,625 —Corporate bonds and notes 7,539 7,539 — —Mutual funds—bonds 36,447 36,447 — —

Other—mutual funds 20,667 20,667 — —Cash and money market accounts 4,975 4,975 — —

Total $ 218,084 $ 160,531 $ 57,553 $ —

The fair values of the Company's international pension plans' assets at December 31, 2012 by assetclass are as follows:

(In thousands) Total Level 1 Level 2 Level 3

Equity securities:Mutual funds—equities $ 269,789 $ — $ 269,789 $ —

Fixed income investments:Mutual funds—bonds 309,274 — 309,274 —Insurance contracts 66,900 — 66,900 —

Other:Real estate funds/limited partnerships 49,007 — 31,261 17,746Other mutual funds 86,537 — 86,537 —

Cash and money market accounts 1,552 1,552 — —

Total $ 783,059 $ 1,552 $ 763,761 $ 17,746

The fair values of the Company's U.S. pension plans' assets at December 31, 2011 by asset class are asfollows:

(In thousands) Total Level 1 Level 2 Level 3

Domestic equities:Common stocks $ 39,295 $ 39,295 $ — $ —Mutual funds—equities 40,107 19 40,088 —

International equities—mutual funds 37,740 33,198 4,542 —Fixed income investments:

U.S. Treasuries and collateralizedsecurities 23,054 — 23,054 —Corporate bonds and notes 5,507 5,507 — —Mutual funds—bonds 40,110 40,110 — —

Other—mutual funds 19,392 19,392 — —

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Cash and money market accounts 4,032 4,032 — —

Total $ 209,237 $ 141,553 $ 67,684 $ —

The fair values of the Company's international pension plans' assets at December 31, 2011 by assetclass are as follows:

(In thousands) Total Level 1 Level 2 Level 3

Equity securities:Mutual funds—equities $ 247,629 $ — $ 247,629 $ —

Fixed income investments:Corporate bonds and notes — — — —Mutual funds—bonds 294,010 — 294,010 —Insurance contracts 63,169 — 63,169 —

Other:Real estate funds / limited partnerships 43,122 — 31,097 12,025Other mutual funds 63,568 — 63,568 —

Cash and money market accounts 2,665 2,665 — —

Total $ 714,163 $ 2,665 $ 699,473 $ 12,025

The following table summarizes changes in the fair value of Level 3 assets for 2011 and 2012:

Level 3 Asset Changes for the Twelve Months Ended December 31

(In thousands) 2012 2011 2010

Real Estate Limited Partnership:Balance at beginning of year $ 12,025 $ 10,184 $ 10,994Contributions to partnership 2,535 5,697 2,344Cash distributions received (1,270) (333) (636)Actual return on plan assets:Related to asset still held at end of year 4,456 (3,523) (2,518)

Balance at end of year $ 17,746 $ 12,025 $ 10,184

Following is a description of the valuation methodologies used for the plans' investments measured atfair value:

• Level 1 Fair Value Measurements—Investments in interest-bearing cash are stated at cost,which approximates fair value. The fair values of money market accounts and certainmutual funds are based on quoted net asset values of the shares held by the Plan at year-end. The fair values of domestic and international stocks and corporate bonds, notes andconvertible debentures are valued at the closing price reported in the active market onwhich the individual securities are traded.

• Level 2 Fair Value Measurements—The fair values of investments in mutual funds forwhich quoted net asset values in an active market are not available are valued by theinvestment advisor based on the current market values of the underlying assets of themutual fund based on information reported by the investment consistent with auditedfinancial statements of the mutual fund. Further information concerning these mutual funds

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may be obtained from their separate audited financial statements. Investments in U.S.Treasury notes and collateralized securities are valued based on yields currently availableon comparable securities of issuers with similar credit ratings.

• Level 3 Fair Value Measurements—Real estate limited partnership interests are valued bythe general partners based on the underlying assets. The limited partnership interests arevalued using unobservable inputs and have been classified within Level 3 of the fair valuehierarchy.

Multiemployer PlansThe Company contributes to numerous multiemployer pension plans under the terms of collective-bargaining agreements that cover its union-represented employees, many of whom are temporary innature. The risks of participating in multiemployer pension plans differ from traditional company-sponsored defined benefit plans as follows:

• Assets contributed to a multiemployer pension plan by one employer may be used toprovide benefits to the employees of other participating employers;

• When a participating employer stops contributing to a multiemployer pension plan, theunfunded obligations of the plan become the responsibility of the remaining participatingemployers, subject to any exemptions that may apply; and

• If the Company elects to stop participation in a multiemployer pension plan, the Companymay be required to pay a withdraw liability which is based upon the underfunded status ofthe plan.

The Company's participation in multiemployer pension plans for the years ended December 31, 2012,2011 and 2010 is outlined below. The Company considers significant plans to be those plans to whichthe Company contributed more than 5% of total contributions to the plan in a given plan year or forwhich the Company believes its share of the unfunded liability for the plan may be material to theCompany. The most recent Pension Protection Act zone status available in 2012 and 2011 is for planyears ended in 2011 and 2010, respectively. The zone status is based on information that the Companyreceived from the plan and is certified by the plan's actuary: Green represents a plan that is more than80% funded; Yellow represents a plan that is between 65% and 80% funded; and Red represents aplan that is less than 65% funded.

(In thousands)

PensionProtectionAct Zone

Status ForPlan Years

Ended

Contributions By TheCompany

For Plan Years Ended (b)

Pension FundIdentification

Number 2011 2010 2012 2011 2010

Subject toFinancial

ImprovementPlan

SurchargeImposed

ExpirationDate of

Collective-BargainingAgreement

Significant multiemployer plans for which plan financial information is publicly available outside the Company'sfinancial statements:CumberlandMD VicinityBuildingConstructionEmployeesTrust Fund 52-6061646 Green Green $ 472 $ 477 $ 556 No No 2013GreaterPennsylvaniaCarpenters'Pension Fund 25-6135570 Green Yellow 1,176 1,542 1,412 Yes No 2014OhioCarpenters'Pension Plan 34-6574360 Green Green 768 953 777 Yes No 2013Significant multiemployer plans for which plan financial information is not publicly available outside the Company'sfinancial statements:New ZealandSteel PensionFund 018-054-531 N/A N/A 909 891 810 Yes No 2013

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Summary aggregate information for multiemployer plans which are not individually significant:All othermultiemployerplans 12,489 16,418 13,602

Total Contributions (a) $15,814 $20,281 $17,157

(a) Contributions to multiemployer pension plans in 2010 do not include $8.3 million of plan withdrawal costs triggeredas the Company has ceased, or expects to cease, contributing to ten multiemployer plans for certain locations as partof the Harsco Infrastructure Segment's restructuring initiatives. These restructuring initiatives are described inNote 18, Restructuring Programs. The $8.3 million of costs is included in the Other expenses line of theConsolidated Statements of Operations, as described in Note 16, Other Expenses.

(b) These amounts represent either contributions for the plan year as confirmed by plan sponsors or the Company'sestimates based on its fiscal year accounts payable records which will be updated as confirmation is received fromplan sponsors.

For plan years ended 2012, 2011 and 2010, the Company contributed more than 5% of the totalcontributions to the Cumberland MD Vicinity Building Construction Employees Trust Fund. For planyears ended 2012, 2011 and 2010, the Company contributed more than 5% of the total contributions tothe New Zealand Steel Pension Fund. At the date these financial statements were issued, financialinformation from plan sponsors was unavailable for plan years ended in 2012.

The New Zealand Steel Pension Fund is a defined benefit superannuation scheme registered in NewZealand under the Superannuation Schemes Act of 1989 to provide retirement benefits to the salariedemployees of the New Zealand Steel United Group of companies. The New Zealand Steel PensionFund financial statements for the years ended June 30, 2012 and 2011 indicated total assets of $252.5million and $253.9 million, respectively; total actuarial present value of accumulated plan benefits of$283.7 million and $278.4 million, respectively; and total contributions for all participating employersof $10.6 million and $11.3 million, respectively.

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3 MonthsEnded 12 Months EndedInformation by Segment and

Geographic Area (Details 3)(USD $) Dec. 31, 2010 Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2010

Segment Reporting Information [Line Items]Revenues $

3,046,018,000$3,302,740,000

$3,038,678,000

Operating Income (Loss) (174,790,000) 87,649,000 78,431,000Total Assets 3,469,220,0002,975,969,000 3,338,877,000 3,469,220,000Depreciation and Amortization 272,117,000 310,441,000 315,239,000Capital Expenditures 265,023,000 313,101,000 192,348,000Interest income 3,676,000 2,751,000 2,668,000Interest expense (47,381,000) (48,735,000) (60,623,000)Income (loss) from continuing operations beforeincome taxes and equity income (218,495,000) 41,665,000 20,476,000

2011/2012 Restructuring ProgramSegment Reporting Information [Line Items]Pre-tax restructuring charges 101,000,000Segment operating incomeSegment Reporting Information [Line Items]Operating Income (Loss) (166,895,000) 93,440,000 81,564,000Harsco Metals & Minerals SegmentSegment Reporting Information [Line Items]Revenues 1,404,103,000 1,588,302,000 1,461,531,000Operating Income (Loss) 85,523,000 109,593,000 117,915,000Total Assets 1,541,117,000 1,561,973,000 1,537,538,000 1,541,117,000Depreciation and Amortization 163,137,000 183,784,000 180,306,000Capital Expenditures 189,358,000 212,009,000 123,153,000Harsco Metals & Minerals Segment | 2011/2012Restructuring ProgramSegment Reporting Information [Line Items]Pre-tax restructuring charges 5,500,000 [1] 12,800,000 [1]

Harsco Infrastructure SegmentSegment Reporting Information [Line Items]Pre-tax restructuring charges 84,400,000Revenues 937,293,000 1,108,293,000 1,031,807,000Operating Income (Loss) (368,657,000) (125,555,000) (145,346,000)Total Assets 1,534,379,0001,018,979,000 1,371,143,000 1,534,379,000Depreciation and Amortization 89,814,000 107,621,000 114,861,000Capital Expenditures 63,137,000 88,456,000 54,858,000Harsco Infrastructure Segment | 2011/2012Restructuring ProgramSegment Reporting Information [Line Items]Pre-tax restructuring charges 88,600,000 [1] 87,600,000 [1]

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Harsco Rail SegmentSegment Reporting Information [Line Items]Revenues 352,036,000 300,029,000 313,262,000Operating Income (Loss) 56,079,000 58,746,000 66,124,000Total Assets 208,338,000 188,348,000 213,410,000 208,338,000Depreciation and Amortization 10,116,000 10,133,000 11,110,000Capital Expenditures 4,133,000 4,497,000 9,498,000Harsco Industrial SegmentSegment Reporting Information [Line Items]Revenues 352,586,000 306,116,000 231,898,000Operating Income (Loss) 60,160,000 50,656,000 42,871,000Total Assets 58,918,000 81,035,000 80,784,000 58,918,000Depreciation and Amortization 3,098,000 2,805,000 2,832,000Capital Expenditures 3,669,000 4,938,000 1,722,000General CorporateSegment Reporting Information [Line Items]Revenues 0 0 180,000Operating Income (Loss) (7,895,000) (5,791,000) (3,133,000)Total Assets 126,468,000 125,634,000 136,002,000 126,468,000Depreciation and Amortization 5,952,000 6,098,000 6,130,000Capital Expenditures $ 4,726,000 $ 3,201,000 $ 3,117,000[1] Includes principally the recognition of additional expenses due to timing considerations under U.S. GAAP,

as well as adjustments to previously recorded restructuring charges resulting from changes in facts andcircumstances in the implementation of these activities.

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12 Months EndedCONSOLIDATEDSTATEMENTS OF

OPERATIONS (USD $)In Thousands, except Per

Share data, unless otherwisespecified

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

Revenues from continuing operations:Service revenues $

2,340,996$2,700,664

$2,511,505

Product revenues 705,022 602,076 527,173Total revenues 3,046,018 3,302,740 3,038,678Costs and expenses from continuing operations:Cost of services sold 1,861,732 2,162,948 1,994,637Cost of products sold 487,784 407,680 342,242Selling, general and administrative expenses 503,339 535,679 532,624Research and development expenses 9,139 6,044 4,271Goodwill impairment charge 265,038 0 0Other expenses 93,776 102,740 86,473Total costs and expenses 3,220,808 3,215,091 2,960,247Operating income (loss) from continuing operations (174,790) 87,649 78,431Interest income 3,676 2,751 2,668Interest expense (47,381) (48,735) (60,623)Income (loss) from continuing operations before income taxes and equityincome (218,495) 41,665 20,476

Income tax expense (35,251) (49,848) (4,276)Equity in income of unconsolidated entities, net 564 690 390Income (loss) from continuing operations (253,182) (7,493) 16,590Discontinued operations:Loss on disposal of discontinued business (1,843) (3,306) (7,249)Income tax benefit related to discontinued business 924 1,243 3,118Loss from discontinued operations (919) (2,063) (4,131)Net income (loss) (254,101) (9,556) 12,459Less: Net income attributable to noncontrolling interests (511) (1,954) (5,705)Net income (loss) attributable to Harsco Corporation (254,612) (11,510) 6,754Amounts attributable to Harsco Corporation common stockholders:Income (loss) from continuing operations, net of tax (253,693) (9,447) 10,885Loss from discontinued operations, net of tax (919) (2,063) (4,131)Net income (loss) attributable to Harsco Corporation common stockholders $

(254,612)$(11,510) $ 6,754

Weighted average number of shares of common stock outstanding 80,632 80,736 80,569Basic earnings (loss) per share attributable to Harsco Corporationcommon stockholders:Continuing operations (in dollars per share) $ (3.15) $ (0.12) $ 0.14Discontinued operations (in dollars per share) $ (0.01) $ (0.03) $ (0.05)

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Basic earnings (loss) per share attributable to Harsco Corporation commonstockholders $ (3.16) $ (0.14) [1] $ 0.08 [1]

Diluted weighted average number of shares of stock outstanding 80,632 80,736 80,761Diluted earnings (loss) per share attributable to Harsco Corporationcommon stockholders:Continuing operations (in dollars per share) $ (3.15) $ (0.12) $ 0.13Discontinued operations (in dollars per share) $ (0.01) $ (0.03) $ (0.05)Diluted earnings (loss) per share attributable to Harsco Corporationcommon stockholders $ (3.16) $ (0.14) [1] $ 0.08

[1] Does not total due to rounding.

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12 Months EndedAcquisitions andDispositions Dec. 31, 2012

Acquisitions andDispositions [Abstract]Acquisitions and Dispositions Acquisitions and Dispositions

AcquisitionsCertain of the Company's acquisitions in prior years included contingent consideration featuresfor which defined goals needed to be met by the acquired business in order for payment of theconsideration. Each quarter until settlement of these contingencies, the Company assessed thelikelihood that an acquired business would achieve the goals and the resulting fair value of thecontingency. In accordance with U.S. GAAP, these adjustments were recognized in operatingincome (loss) in the Consolidated Statements of Operations as a component of the Other expensesline item. The Company's assessment of these performance goals resulted in the followingreductions to previously recognized contingent consideration liabilities:

Years Ended December 31

(In thousands) 2012 2011 2010

Reduction of contingent consideration liabilities $ — $ 3,966 $ 10,620

All contingent consideration liabilities have been settled and there was no recorded contingentconsideration liability as of December 31, 2012 or 2011.

Net Income (Loss) Attributable to the Company and Transfers to Noncontrolling InterestThe purpose of the following schedule is to disclose the effects of changes in the Company'sownership interest in its subsidiaries on the Company's equity.

Years Ended December 31

(In thousands) 2012 2011 2010

Net income (loss) attributable to the Company $ (254,612) $ (11,510) $ 6,754Decrease in the Company's paid-in capital forpurchase of noncontrolling interests — — (1,003)Change from net income (loss) attributable to theCompany and transfers to noncontrolling interest $ (254,612) $ (11,510) $ 5,751

DispositionsConsistent with the Company's strategic focus to grow and allocate financial resources principallyto its industrial services businesses, the Company sold its Gas Technologies Segment to TaylorWharton International in 2007. The Company recorded after-tax losses from discontinuedoperations of $0.9 million, $2.1 million and $4.1 million, in 2012, 2011 and 2010, respectively.The losses incurred in 2012, 2011 and 2010 included charges related to potential and contingentclaims. The Consolidated Statements of Operations for the years ended 2012, 2011 and 2010reflect the Gas Technologies Segment's results in discontinued operations.

Dispositions—Assets Held-for-SaleThroughout the past several years and in conjunction with the 2011/2012 Restructuring Programand the Fourth Quarter 2010 Harsco Infrastructure Program, management approved the sale ofcertain long-lived assets throughout the Company's operations. At December 31, 2012 andDecember 31, 2011, assets held-for-sale of $2.4 million and $7.2 million, respectively, wererecorded as Other current assets on the Consolidated Balance Sheets.

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12 Months EndedRecently Adopted andRecently Issued Accounting

Standards Dec. 31, 2012

Accounting Changes andError Corrections [Abstract]Recently Adopted andRecently Issued AccountingStandards

Recently Adopted and Recently Issued Accounting Standards

The following accounting standards have been adopted in 2012:

On January 1, 2012, the Company adopted Financial Accounting Standards Board (“FASB”)issued changes related to fair value measurement and disclosure. The changes are the result ofconvergence with International Financial Reporting Standards and clarify certain fair valuemeasurement concepts and expand on existing disclosure requirements on Level 3 fair valuemeasurements. The adoption of these changes did not have a material impact on the Company’sconsolidated financial statements.

On January 1, 2012, the Company adopted FASB issued changes related to the presentation ofcomprehensive income. The changes remove certain presentation options and require entities toreport components of comprehensive income in either a continuous statement of comprehensiveincome or two separate but consecutive statements. There were no changes to the items that arereported in other comprehensive income. In December 2011, the FASB indefinitely deferred arequirement dealing with the presentation of reclassification adjustments out of accumulatedother comprehensive income. Other than the sequencing of financial statements, the adoption ofthese changes did not have an impact on the Company’s consolidated financial statements.

On January 1, 2012, the Company adopted FASB issued changes related to testing for goodwillimpairment. The changes allow for an assessment of qualitative factors to determine whether it isnecessary to perform the two-step impairment test. The adoption of these changes did not havean impact on the Company’s consolidated financial statements, but it may impact the manner inwhich the Company performs testing for goodwill impairment.

The following accounting standard has been issued and becomes effective for the Company at afuture date:

In December 2011, the FASB issued changes related to offsetting assets and liabilities. Thechanges require additional disclosure information regarding offsetting assets and liabilities toenable users of financial statements to understand the effect on financial position. These changesbecome effective for the Company on January 1, 2013 with retrospective application required.Management has determined these changes will not have a material impact on the Company'sconsolidated financial statements.

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12 Months EndedFinancial Instruments Dec. 31, 2012Derivative Instruments andHedging ActivitiesDisclosure [Abstract]Financial Instruments Financial Instruments

Off-Balance Sheet RiskAs collateral for the Company's performance and to insurers, the Company is contingently liable under standbyletters of credit, bonds and bank guarantees in the amounts of $208.8 million and $273.6 million atDecember 31, 2012 and 2011, respectively. These standby letters of credit, bonds and bank guarantees aregenerally in force for up to five years. Certain issues have no scheduled expiration date. The Company pays feesto various banks and insurance companies that range from 0.32% to 1.93% per annum of the instruments' facevalue. If the Company were required to obtain replacement standby letters of credit, bonds and bank guaranteesat December 31, 2012 for those currently outstanding, it is the Company's opinion that the replacement costswould be within the present fee structure.

The Company has currency exposures in approximately 50 countries. The Company's primary foreign currencyexposures during 2012 were in the European Economic and Monetary Union, the United Kingdom and Brazil.

Off-Balance Sheet Risk—Third-Party GuaranteesIn connection with the licensing of one of the Company's trade names and providing certain managementservices (the furnishing of selected employees), the Company guarantees the debt of certain third parties relatedto its international operations. These guarantees are provided to enable the third parties to obtain financing fortheir operations. The Company receives fees from these operations, which are included as Service revenues inthe Company's Consolidated Statements of Operations. The Company recorded revenue from these entities of$1.3 million, $1.2 million and $1.9 million during 2012, 2011 and 2010, respectively. The guarantees arerenewed on an annual basis and the Company would only be required to perform under the guarantees if thethird parties default on their debt. The maximum potential amount of future payments (undiscounted) related tothese guarantees was $0.7 million and $1.6 million at December 31, 2012 and 2011, respectively. There is norecognition of this potential future payment in the consolidated financial statements as the Company believes thepotential for making these payments is remote. At December 31, 2012, there is one guarantee outstanding thatwas renewed in December 2012.

The Company provided an environmental indemnification for properties that were sold to a third-party in 2007.The maximum term of this guarantee is 20 years, and the Company would be required to perform under theguarantee only if an environmental matter is discovered on the properties. The Company is not aware ofenvironmental issues related to these properties. There is no recognition of this potential future payment in theconsolidated financial statements as the Company believes the potential for making this payment is remote.

The Company provided an environmental indemnification for property from a lease that terminated in 2006. Theterm of this guarantee is indefinite, and the Company would be required to perform under the guarantee only ifan environmental matter was discovered on the property relating to the time the Company leased the property.The Company is not aware of any environmental issues related to this property. The maximum potential amountof future payments (undiscounted) related to this guarantee is estimated to be $3.0 million at both December 31,2012 and 2011. There is no recognition of this potential future payment in the consolidated financial statementsas the Company believes the potential for making this payment is remote.

The Company provides guarantees related to arrangements with certain customers that include joint and severalliability for actions for which the Company may be partially at fault. The terms of these guarantees generally donot exceed four years, and the maximum amount of future payments (undiscounted) related to these guaranteesis $3.0 million per occurrence. This amount represents the Company's self-insured maximum limitation. There isno specific recognition of potential future payments in the consolidated financial statements as the Company isnot aware of any claims.

Any liabilities related to the Company's obligation to stand ready to act on third-party guarantees are included inOther current liabilities or Other liabilities (as appropriate) on the Consolidated Balance Sheets. Any recognitionof these liabilities did not have a material impact on the Company's financial condition or results of operationsfor 2012, 2011 or 2010.

In the normal course of business, the Company provides legal indemnifications related primarily to theperformance of its products and services and patent and trademark infringement of its products and services

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sold. These indemnifications generally relate to the performance (regarding function, not price) of the respectiveproducts or services and therefore no liability is recognized related to the fair value of such guarantees.

Derivative Instruments and Hedging ActivitiesThe Company uses derivative instruments, including foreign currency forward exchange contracts, commoditycontracts and cross currency interest rate swaps, to manage certain foreign currency, commodity price andinterest rate exposures. Derivative instruments are viewed as risk management tools by the Company and are notused for trading or speculative purposes.

All derivative instruments are recorded on the Consolidated Balance Sheets at fair value. Changes in the fairvalue of derivatives used to hedge foreign currency denominated balance sheet items are reported directly inearnings along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedgeforecasted cash flows associated with foreign currency commitments or forecasted commodity purchases may beaccounted for as cash flow hedges, as deemed appropriate and if the criteria for hedge accounting are met. Gainsand losses on derivatives designated as cash flow hedges are deferred as a separate component of equity andreclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions.Generally, at December 31, 2012, these deferred gains and losses will be reclassified to earnings over 10 to 15years from the balance sheet date. The ineffective portion of all hedges, if any, is recognized currently inearnings.

The fair value of outstanding derivative contracts recorded as assets and liabilities on the Consolidated BalanceSheets at December 31, 2012 and 2011 was as follows:

Asset Derivatives Liability Derivatives

(in thousands)Balance Sheet

Location Fair Value Balance Sheet Location Fair Value

December 31, 2012Derivatives designated as hedging instruments:Cross currency interest rate swaps Other assets $ 39,058 Other liabilities $ 14,346

Derivatives not designated as hedging instruments:Foreign currency forward exchangecontracts

Other currentassets $ 853

Other currentliabilities $ 1,775

Asset Derivatives Liability Derivatives

(in thousands)Balance Sheet

Location Fair Value Balance Sheet Location Fair Value

December 31, 2011Derivatives designated as hedging instruments:Foreign currency forward exchangecontracts

Other currentassets $ 274

Other currentliabilities $ —

Cross currency interest rate swaps Other assets 44,636 Other liabilities 1,792Total derivatives designated ashedging instruments $ 44,910 $ 1,792

Derivatives not designated as hedging instruments:Foreign currency forward exchangecontracts

Other currentassets $ 2,912

Other currentliabilities $ 1,207

The effect of derivative instruments in the Consolidated Statements of Operations and the ConsolidatedStatements of Comprehensive Income during 2012, 2011 and 2010 was as follows:

Derivatives Designated as Hedging Instruments

(Inthousands)

Amount ofGain (Loss)

Recognized inOther

ComprehensiveIncome

("OCI") onDerivative—Effective

Location of Gain(Loss) Reclassified

fromAccumulated

OCI intoIncome—Effective

Portion

Amount ofGain (Loss)Reclassified

fromAccumulated

OCI intoIncome—Effective

Portion

Location of Gain(Loss) Recognized

in Income onDerivative—Ineffective

Portionand Amount

Excluded fromEffectiveness

Amount ofGain (Loss)Recognizedin Income

onDerivative—Ineffective

Portion andAmount

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Portion Testing

Excludedfrom Effectiveness

Testing

Twelve Months Ended December 31, 2012:Foreigncurrencyforwardexchangecontracts $ (152)

Cost ofservices andproducts sold $ 270 $ —

Crosscurrencyinterest rateswaps (4,748) —

Cost of servicesand products sold (13,384) (a)

$ (4,900) $ 270 $ (13,384)Twelve Months Ended December 31, 2011:Foreigncurrencyforwardexchangecontracts $ 887 $ 83 $ —Crosscurrencyinterest rateswaps 7,230 —

Cost of servicesand products sold 7,642 (a)

$ 8,117 $ 83 $ 7,642Twelve Months Ended December 31, 2010:Foreigncurrencyforwardexchangecontracts $ 32 $ — $ —

Commoditycontracts 20

Cost ofservices andproducts sold 20

Cost of servicesand products sold 10

Crosscurrencyinterest rateswaps (1,119) —

Cost of servicesand products sold 21,734 (a)

$ (1,067) $ 20 $ 21,744(a) These gains (losses) offset foreign currency fluctuation effects on the debt principal.

Derivatives Not Designated as Hedging Instruments

Amount of Gain (Loss) Recognized in Income onDerivative for the Twelve Months Ended

December 31(a)

(In thousands)

Location of Gain (Loss)Recognized in Income on

Derivative 2012 2011 2010

Foreign currency forward exchangecontracts

Cost of services andproducts sold $ (3,529) $ 7,238 $ 1,483

(a) These gains (losses) offset amounts recognized in cost of service and products sold principally as a result of intercompany orthird-party foreign currency exposures.

Commodity DerivativesThe Company periodically uses derivative instruments to hedge cash flows associated with purchase or sellingprice exposure to certain commodities. The Company's commodity derivative activities are subject to themanagement, direction and control of the Company's Risk Management Committee, which approves the use ofall commodity derivative instruments. There were no commodity derivative contracts outstanding atDecember 31, 2012 and 2011.

Foreign Currency Forward Exchange ContractsThe Company conducts business in multiple currencies and, accordingly, is subject to the inherent risksassociated with foreign exchange rate movements. The financial position and results of operations of

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substantially all of the Company's foreign subsidiaries are measured using the local currency as the functionalcurrency. Foreign currency-denominated assets and liabilities are translated into U.S. dollars at the exchangerates existing at the respective balance sheet dates, and income and expense items are translated at the averageexchange rates during the respective periods. The aggregate effects of translating the balance sheets of thesesubsidiaries are deferred and recorded in Accumulated other comprehensive loss, which is a separate componentof equity.

The Company uses derivative instruments to hedge cash flows related to foreign currency fluctuations. Foreigncurrency forward exchange contracts outstanding are part of a worldwide program to minimize foreign currencyexchange operating income and balance sheet exposure by offsetting foreign currency exposures of certainfuture payments between the Company and its various subsidiaries, suppliers or customers. The unsecuredcontracts 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 counterpartiesand does not expect default by them. Foreign currency forward exchange contracts are used to hedgecommitments, such as foreign currency debt, firm purchase commitments and foreign currency cash flows forcertain export sales transactions.

The following tables summarize, by major currency, the contractual amounts of the Company's foreign currencyforward exchange contracts in U.S. dollars at December 31, 2012 and 2011. The "Buy" amounts represent theU.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 amountsrecognized in cost of services and products sold principally as a result of intercompany or third-party foreigncurrency exposures.

Contracted Amounts of Foreign Currency Exchange Forward Contracts Outstanding at December 31,2012:

(In thousands) TypeU.S. DollarEquivalent Maturity

RecognizedGain (Loss)

British pounds sterling Sell $ — $ —

British pounds sterling Buy 6,141January 2013 through February

2013 58

Euros Sell 264,234January 2013 through March

2013 (1,082)

Euros Buy 116,618January 2013 through February

2013 187

Other currencies Sell 2,811January 2013 through March

2013 (15)Other currencies Buy 44,291 January 2013 (71)

Total $ 434,095 $ (923)

Contracted Amounts of Foreign Currency Exchange Forward Contracts Outstanding at December 31,2011:

(In thousands) TypeU.S. DollarEquivalent Maturity

RecognizedGain (Loss)

British pounds sterling Sell $ 18,350 January 2012 $ (20)British pounds sterling Buy 4,364 January 2012 (12)

Euros Sell 178,889January 2012 through October

2012 2,345

Euros Buy 105,247January 2012 through April

2012 (878)

Other currencies Sell 2,957January 2012 through March

2012 62Other currencies Buy 14,656 January 2012 235

Total $ 324,463 $ 1,732

In addition to foreign currency forward exchange contracts, the Company designates certain loans as hedges ofnet investments in international subsidiaries. The Company recorded pre-tax net losses of $5.3 million and pre-tax net gains of $6.3 million and $19.0 million related to hedges of net investments during 2012, 2011 and 2010,respectively, in Accumulated other comprehensive loss.

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Cross Currency Interest Rate SwapsThe Company uses cross currency interest rate swaps in conjunction with certain debt issuances in order tosecure a fixed local currency interest rate. Under these cross currency interest rate swaps, the Company receivesinterest based on a fixed or floating U.S. dollar rate and pays interest on a fixed local currency rate based on thecontractual amounts in dollars and the local currency, respectively. The cross currency interest rate swaps arerecorded on the Consolidated Balance Sheets at fair value, with changes in value attributed to the effect of theswaps' interest spread recorded in Accumulated other comprehensive loss. Changes in value attributed to theeffect of foreign currency fluctuations are recorded in the Consolidated Statements of Operations and offsetcurrency fluctuation effects on the debt principal. The following table indicates the contractual amounts of theCompany's cross currency interest rate swaps:

Interest Rates

(In millions)Contractual

Amounts Receive Pay

Maturing 2018 $ 250.0 Fixed U.S. dollar rate Fixed euro rateMaturing 2020 220.0 Fixed U.S. dollar rate Fixed British pound sterling rateMaturing 2013 through 2017 4.8 Floating U.S. dollar rate Fixed rupee rate

Fair Value of Derivative Assets and Liabilities and Other Financial InstrumentsFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date (an exit price). The Company utilizes marketdata 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 marketdata obtained from independent sources (observable inputs) and (2) an entity's own assumptions about marketparticipant assumptions based on the best information available in the circumstances (unobservable inputs). Thefair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices inactive 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 foridentical, unrestricted assets or liabilities.

• Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset orliability, either directly or indirectly, including quoted prices for similar assets or liabilities in activemarkets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputsother than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs thatare 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 onthe lowest level input that is significant to the fair value measurement in its entirety. The Company's assessmentof the significance of a particular input to the fair value measurement in its entirety requires judgment, andconsiders factors specific to the asset or liability.

The following table indicates the fair value hierarchy of the financial instruments of the Company atDecember 31, 2012 and 2011:

Level 2 Fair Value Measurements(In thousands)

December 312012

December 312011

AssetsForeign currency forward exchange contracts $ 853 $ 3,186Cross currency interest rate swaps 39,058 44,636

LiabilitiesForeign currency forward exchange contracts 1,775 1,207Cross currency interest rate swaps 14,346 1,792

The following table reconciles the beginning and ending balances for liabilities measured on a recurring basisusing unobservable inputs (Level 3) for 2012 and 2011:

Level 3 Liabilities—Contingent Consideration for the Twelve Months Ended December 31(In thousands) 2012 2011

Balance at beginning of year $ — $ 3,872

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Fair value adjustments included in earnings — (3,966)Effect of exchange rate changes — 94

Balance at end of year $ — $ —

The Company primarily applies the market approach for recurring fair value measurements and endeavors toutilize the best available information. Accordingly, the Company utilizes valuation techniques that maximize theuse of observable inputs, such as forward rates, interest rates, the Company's credit risk and counterparties' creditrisks, and which minimize the use of unobservable inputs. The Company is able to classify fair value balancesbased on the ability to observe those inputs. Commodity derivatives, foreign currency forward exchangecontracts and cross currency interest rate swaps are classified as Level 2 fair value based upon pricing modelsusing market-based inputs. Model inputs can be verified, and valuation techniques do not involve significantmanagement judgment.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilitiesand short-term borrowings approximate fair value due to the short-term maturities of these assets and liabilities.At December 31, 2012 and 2011, the total fair value of long-term debt, including current maturities, was $1.0billion and $935.1 million, respectively, compared to carrying value of $960.7 million and $857.4 million,respectively. Fair values for debt are based on quoted market prices (Level 1) for the same or similar issues or onthe current rates offered to the Company for debt of the same remaining maturities.

Concentrations of Credit RiskFinancial instruments which potentially subject the Company to concentrations of credit risk consist principallyof cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents withhigh-quality financial institutions and, by policy, limits the amount of credit exposure to any single institution.

Concentrations of credit risk with respect to accounts receivable are generally limited in the HarscoInfrastructure and Harsco Industrial Segments due to the Company's large number of customers and theirdispersion across different industries and geographies. However, the Company's Harsco Metals & MineralsSegment and, to a lesser extent, the Harsco Rail Segment have several large customers throughout the worldwith significant accounts receivable balances. Consolidation in the global steel or rail industries could result inan increase in concentration of credit risk for the Company.

The Company generally does not require collateral or other security to support customer receivables. If areceivable from one or more of the Company's larger customers becomes uncollectible, it could have a materialeffect on the Company's results of operations or cash flows.

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12 Months EndedIncome Taxes Dec. 31, 2012Income Tax Disclosure[Abstract]Income Taxes Income Taxes

Income (loss) from continuing operations before income taxes and equity income as reported inthe Consolidated Statements of Operations consists of the following:

(In thousands) 2012 2011 2010

United States $ 40,411 $ 47,680 $ 23,037International (258,906) (6,015) (2,561)

Total income (loss) before income taxes and equityincome $ (218,495) $ 41,665 $ 20,476

Income tax expense as reported in the Consolidated Statements of Operations consists of thefollowing:

(In thousands) 2012 2011 2010

Income tax expense (benefit):Currently payable:

U.S. federal $ 22,603 $ 4,249 $ (325)U.S. state 1,561 913 453International 21,795 23,860 30,765

Total income taxes currently payable 45,959 29,022 30,893Deferred U.S. federal (3,831) 670 6,228Deferred U.S. state (843) 503 (56)Deferred international (6,034) 19,653 (32,789)

Total income tax expense $ 35,251 $ 49,848 $ 4,276

Cash payments for income taxes, including taxes on the gain or loss from discontinued business,were $42.6 million, $42.3 million and $27.4 million for 2012, 2011 and 2010, respectively.

The following is a reconciliation of the normal expected statutory U.S. federal income tax rate tothe effective income tax rate as a percentage of Income (loss) from continuing operations beforeincome taxes and noncontrolling interest as reported in the Consolidated Statements ofOperations:

2012 2011 2010

U.S. federal income tax rate 35.0 % 35.0 % 35.0 %U.S. state income taxes, net of federal income taxbenefit (0.1) 2.9 5.1U.S. domestic manufacturing deductions andcredits 1.7 (9.6) (5.9)Change in permanent reinvestment assertion — — 9.3Difference in effective tax rates on internationalearnings and remittances (0.7) (11.7) (34.4)Uncertain tax position contingencies andsettlements 2.5 (18.0) 1.2

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Changes in realization on beginning of the yeardeferred tax assets (1.8) 89.1 8.4Restructuring charges with no realizable taxbenefits (9.8) 23.0 11.2U.S. nondeductible items (0.7) 6.0 8.7Deferred charges — — (19.0)Non-deductible goodwill impairment (42.5) — —Cumulative effect of change in statutory tax rates/laws 0.1 3.5 3.4Other, net 0.2 (0.6) (2.1)

Effective income tax rate (16.1)% 119.6 % 20.9 %

The decrease in the effective income tax rate for 2012 compared with 2011 is the result of lowerearnings from continuing operations, a non-deductible goodwill impairment charge of $265.0million for which the Company has no tax basis as a result of historical stock acquisitions, and achange in the realizability of beginning of the year deferred tax assets of $37.3 million primarilyrelated to the Company's U.K. deferred tax assets on its U.K. pension obligations recorded in2011 and not repeated in 2012. The decrease in the effective tax rate for 2012 compared with2011 was offset by a change in the earnings mix of the Company for year 2012 compared withprior years primarily due to the jurisdictional impact of the Company's restructuring charges, andthe reduction in tax benefits from the lapse of several statutes of limitations for uncertain taxpositions in 2012 compared to 2011.

The tax effects of the temporary differences giving rise to the Company's deferred tax assets andliabilities at December 31, 2012 and 2011 are as follows:

2012 2011

(In thousands) Asset Liability Asset Liability

Depreciation and amortization $ — $ 99,219 $ — $ 120,590Expense accruals 38,595 — 43,418 —Inventories 2,649 — 2,588 —Provision for receivables 1,677 — 2,205 —Deferred revenue — 2,014 — 2,065Operating loss carryforwards 99,475 — 79,408 —Foreign tax credit carryforwards 24,223 — 29,540 —Pensions 104,413 — 95,657 —Currency adjustments 26,661 — 30,813 —Post-retirement benefits 1,160 — 1,079 —Other 25,324 — 19,299 —Subtotal 324,177 101,233 304,007 122,655Valuation allowance (126,532) — (99,617) —

Total deferred income taxes $ 197,645 $ 101,233 $ 204,390 $ 122,655

The deferred tax asset and liability balances recognized on the Consolidated Balance Sheets atDecember 31, 2012 and 2011 are as follows:

(In thousands) 2012 2011

Other current assets $ 45,672 $ 50,694Other assets 70,271 59,200Other current liabilities (651) (729)

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Deferred income taxes (18,880) (27,430)

At December 31, 2012, the tax-effected amount of net operating loss carryforwards ("NOLs")totaled $99.5 million. Tax-effected NOLs from international operations are $90.4 million. Of thatamount, $63.6 million can be carried forward indefinitely, and $26.8 million will expire atvarious times between 2013 and 2032. Tax-effected U.S. state NOLs are $9.1 million. Of thatamount, $0.1 million expire at various times between 2013 and 2017, $3.1 million expire atvarious times between 2018 and 2022, $2.7 million expire at various times between 2023 and2027, and $3.2 million expire at various times between 2028 and 2032.

The valuation allowances of $126.5 million and $99.6 million at December 31, 2012 and 2011,respectively, related principally to deferred tax assets for U.K. pension liabilities, NOLs, currencytranslation and foreign investment tax credits that are uncertain as to realizability. Due to thenegative financial performance of the Company's U.K. operations and restructuring charges, theCompany recorded a non-cash tax expense of approximately $6.1 million and $35.4 million in2012 and 2011 to recognize a valuation allowance to fully offset the U.K. operations' net deferredtax assets primarily related to U.K. pension liabilities and losses from operations, as the Companydetermined it is more likely than not that these assets will not be realized. Additionally in 2011,the Company recorded an additional valuation allowance of approximately $22.9 million throughAccumulated other comprehensive loss related to U.K. pension liability adjustments that wererecorded through Accumulated other comprehensive loss during 2011. Excluding the valuationallowance activity related to the Company's U.K. operations, the remaining increase in valuationallowances resulted primarily from restructuring charges that were incurred in certainjurisdictions which generated losses, where the Company determined it is more likely than notthat these assets will not be realized.

The Company has not provided U.S. income taxes on certain of its non-U.S. subsidiaries'undistributed earnings as such amounts are indefinitely reinvested outside the United States. AtDecember 31, 2012 and 2011, such earnings were approximately $882 million and $834 million,respectively. If these earnings were repatriated at December 31, 2012, the one-time tax costassociated with the repatriation would be approximately $166 million.

The Company has a tax holiday in Asia that expired in 2012. The Company no longer has taxholidays in Europe and the Middle East as they have all expired. During 2011, the tax holidaysresulted in a reduction of $0.1 million in income tax expense, while during 2010 and 2012 thesetax holidays resulted in no change to income tax expense.

The Company recognizes accrued interest and penalty expense related to unrecognized incometax benefits ("UTB") in income tax expense. During 2012, 2011 and 2010 the Companyrecognized an income tax benefit of $1.8 million, $1.0 million and $0.3 million, respectively, forinterest and penalties. The Company has accrued $8.0 million and $9.7 million for the payment ofinterest and penalties at December 31, 2012 and 2011, respectively.

A reconciliation of the change in the UTB balance from January 1, 2010 to December 31, 2012 isas follows:

(In thousands)

UnrecognizedIncome Tax

Benefits

DeferredIncome Tax

Benefits

UnrecognizedIncome TaxBenefits, Net

ofDeferredIncome

Tax Benefits

Balances, January 1, 2010 $ 36,791 $ (949) $ 35,842

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Additions for tax positions related to the current year(includes currency translation adjustment) 1,846 — 1,846Additions for tax positions related to prior years(includes currency translation adjustment) 313 (44) 269Other reductions for tax positions related to prioryears (429) — (429)Statutes of limitation expirations (2,348) 156 (2,192)Settlements (284) 99 (185)Balance at December 31, 2010 $ 35,889 $ (738) $ 35,151Additions for tax positions related to the current year(includes currency translation adjustment) 2,534 (10) 2,524Additions for tax positions related to prior years(includes currency translation adjustment) 4,014 (11) 4,003Other reductions for tax positions related to prioryears (147) — (147)Statutes of limitation expirations (8,521) 224 (8,297)Settlements (361) 18 (343)Balance at December 31, 2011 $ 33,408 $ (517) $ 32,891Additions for tax positions related to the current year(includes currency translation adjustment) 584 (8) 576Additions for tax positions related to prior years(includes currency translation adjustment) 37 2 39Other reductions for tax positions related to prioryears (3,987) — (3,987)Statutes of limitation expirations (5,124) 154 (4,970)Settlements — — —Total unrecognized income tax benefits that, ifrecognized, would impact the effective income taxrate at December 31, 2012 $ 24,918 $ (369) $ 24,549

Included in the additions for tax positions related to the current year for 2012 is approximately$0.2 million of unrecognized tax benefits that created additional operating losses in a foreignjurisdiction. To the extent the unrecognized tax benefit is recognized, a full valuation allowancewould be recorded against these operating losses.

Included in the other reductions for tax positions related to prior years for 2012 is $4.0 million ofpreviously unrecognized tax benefits, which were recognized in 2012 as a result of changes inlegislation in a foreign jurisdiction. These benefits were previously deemed to not meet the morelikely than not standard.

Within the next twelve months, it is reasonably possible that up to $3.8 million of unrecognizedincome tax benefits will be recognized upon settlement of tax examinations and the expiration ofvarious statutes of limitations

The Company files its income tax returns as prescribed by the tax laws of the jurisdictions inwhich it operates. With few exceptions, the Company is no longer subject to U.S. andinternational examinations by tax authorities for the years through 2006.

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12 Months Ended 3 MonthsEnded 12 Months Ended 12 Months Ended

Restructuring Programs(Details) (USD $) Dec. 31,

2012Dec. 31,

2011Dec. 31,

2010

Dec. 31, 2010Harsco

InfrastructureSegment

Dec. 31, 20122011/2012

RestructuringProgram

Dec. 31, 20112011/2012

RestructuringProgram

Dec. 31, 20122011/2012

RestructuringProgramHarsco

InfrastructureSegment

Dec. 31, 20112011/2012

RestructuringProgramHarsco

InfrastructureSegment

Dec. 31, 20122011/2012

RestructuringProgramHarsco

InfrastructureSegment

Employeeterminationbenefit costs

Dec. 31, 20122011/2012

RestructuringProgramHarsco

InfrastructureSegment

Cost to exitactivities

Dec. 31, 20122011/2012

RestructuringProgram

Harsco Metals &MineralsSegment

Dec. 31, 20112011/2012

RestructuringProgramHarsco

Metals &MineralsSegment

Dec. 31, 20122011/2012

RestructuringProgram

Harsco Metals& Minerals

SegmentEmployee

terminationbenefit costs

Dec. 31, 20122011/2012

RestructuringProgramHarsco

Metals &MineralsSegment

Cost to exitactivities

Dec. 31, 20122011/2012

RestructuringProgram

Harsco RailSegment

Employeeterminationbenefit costs

Dec. 31, 20122011/2012

RestructuringProgramHarsco

CorporateEmployee

terminationbenefit costs

Dec. 31, 20122011/2012

RestructuringProgramMinimum

Dec. 31, 2012Fourth

Quarter 2010Harsco

InfrastructureProgram

Dec. 31, 2012Fourth

Quarter 2010Harsco

InfrastructureProgramHarsco

InfrastructureSegment

Dec. 31, 2012Fourth

Quarter 2010Harsco

InfrastructureProgramHarsco

InfrastructureSegment

Employeeterminationbenefit costs

Dec. 31, 2012Fourth

Quarter 2010Harsco

InfrastructureProgramHarsco

InfrastructureSegment

Cost to exitactivities

Dec. 31, 2012Fourth

Quarter 2010Harsco

InfrastructureProgramHarsco

InfrastructureSegment

Other

Dec. 31, 2012Prior

restructuringprograms

HarscoMetals &MineralsSegment

Dec. 31, 2012Prior

restructuringprograms

HarscoMetals &MineralsSegment

Employeeterminationbenefit costs

Dec. 31, 2012Prior

restructuringprograms

HarscoMetals &MineralsSegment

Cost to exitactivities

Restructuring Cost andReserve [Line Items]Pre-tax restructuring charges $ 84,400,000 $ 101,000,000 $

88,600,000[1] $

87,600,000[1] $ 5,500,000 [1] $

12,800,000[1]

Overall cost savings in 2012 55,000,000Overall cost savings expectedin 2013 63,000,000

Restructuring Reserve [RollForward]Accrual Beginning Balance 30,471,000 17,333,000 [2] 14,500,000 2,833,000 12,737,000 [2] 12,737,000 0 50,000 351,000 12,147,000 211,000 11,929,000 7,000 2,007,000 1,280,000 727,000Additional Expenses Incurred 69,333,000 [1] 63,422,000 [1],[2] 17,495,000 [1] 45,927,000 [1] 5,473,000 [1],[2] 4,974,000 [1] 499,000 [1] 67,000 [1] 371,000 [1]

Adjustments to PreviouslyRecorded RestructuringCharges

(1,018,000) [3] (208,000) [3] (805,000) [3] (5,000) [3] (1,263,000) [3] (1,263,000) [3] 0 [3]

Non-Cash Charges /Adjustments (111,000) (111,000) [2] (326,000) 215,000 0 [2] 0 0 0 0

Cash Payments (77,105,000) (65,262,000) [2] (25,265,000) (39,997,000) (11,017,000) [2] (11,017,000) 0 (117,000) (709,000) (4,178,000) 0 (4,178,000) 0 (167,000) (43,000) (124,000)Foreign Currency Translation 417,000 617,000 [2] 595,000 22,000 (200,000) [2] (200,000) 0 0 0 (160,000) (3,000) (155,000) (2,000) 13,000 26,000 (13,000)Remaining Accrual EndingBalance 23,005,000 30,471,000 15,999,000 [2] 17,333,000 [2] 6,999,000 9,000,000 6,993,000 [2] 12,737,000 [2] 6,494,000 499,000 0 13,000 6,791,000 0 6,791,000 0 590,000 0 590,000

Non-cash productrationalization expense 24,966,00066,063,00034,302,000 25,000,000

Proceeds from sales of assets 49,779,00042,653,00022,663,000 17,700,000Remaining portion ofrestructuring accrual related toexit activity costs for leaseterminations expected to bepaid over the remaining life ofthe leases

7,000,000

Withdrawal liability to exitcertain multi-employerpension plans

$8,300,000 $ 6,000,000

[1] Includes principally the recognition of additional expenses due to timing considerations under U.S. GAAP, as well as adjustments to previously recorded restructuring charges resulting from changes in facts and circumstances in the implementation of these activities.[2] The table does not include $25.0 million of non-cash product rationalization expense or $17.7 million of proceeds from asset sales under the 2011/2012 Restructuring Program for this Segment as these items did not impact the restructuring accrual during 2012.[3] Adjustments to previously recorded restructuring charges resulted from changes in facts and circumstances in the implementation of these activities.

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12 Months EndedGoodwill and OtherIntangible Assets Dec. 31, 2012

Goodwill and IntangibleAssets Disclosure [Abstract]Goodwill and Other IntangibleAssets

Goodwill and Other Intangible Assets

Goodwill by SegmentThe following table reflects the changes in carrying amounts of goodwill by segment (there is nogoodwill associated with the Harsco Industrial Segment) for the years ended December 31, 2012and 2011:

(In thousands)

HarscoMetals

& MineralsSegment

HarscoInfrastructure

Segment

HarscoRail

SegmentConsolidated

Totals

Balance at December 31, 2010 $ 418,276 $ 263,212 $ 9,299 $ 690,787Changes to goodwill — (115) 11 (104)Foreign currency translation (6,400) (3,382) — (9,782)Balance at December 31, 2011 411,876 259,715 9,310 680,901Changes to goodwill (a) — (2,295) — (2,295)Goodwill impairment — (265,038) — (265,038)Foreign currency translation 8,012 7,618 — 15,630

Balance at December 31, 2012 $ 419,888 $ — $ 9,310 $ 429,198(a) Changes to goodwill relate principally to the allocation of goodwill, in accordance with U.S. GAAP, to

components of the Harsco Infrastructure Segment that were disposed of as part of the 2011/2012 RestructuringProgram.

Goodwill ImpairmentAs discussed in Note 1, Summary of Significant Accounting Policies, Goodwill is tested forimpairment annually or more frequently if indicators of impairment exist or if a decision is madeto dispose of a business. The valuation date for the Company's annual impairment testing isOctober 1. The first step of the October 1, 2012 annual goodwill impairment test indicated thatthe net book value of the Harsco Infrastructure reporting unit exceeded its current fair value,requiring the Company to perform the second step of the goodwill impairment test to measure theamount of impairment loss, if any. In performing the second step of the goodwill impairment test,the Company compared the implied fair value of goodwill for the Harsco Infrastructure reportingunit to its carrying value. This analysis resulted in a non-cash, goodwill impairment charge of$265.0 million, which was recognized during the fourth quarter of 2012. This charge had noimpact on the Company's cash flows or compliance with debt covenants. As a result of thisgoodwill impairment charge, there is no remaining goodwill associated with the HarscoInfrastructure Segment.

The facts and circumstances leading to the goodwill impairment of the Harsco Infrastructurereporting unit primarily relate to a prolonged downturn in the European markets versus what wasexpected earlier in 2012 and its impact on the timing for near-term cash flows.

The Company's methodology for determining reporting unit fair value is described in Note 1,Summary of Significant Accounting Policies. Performance of the Company's 2012 annualimpairment test did not result in impairment of any of the Company's other reporting units.

Intangible AssetsIntangible assets totaled $77.7 million, net of accumulated amortization of $172.6 million atDecember 31, 2012 and $93.5 million, net of accumulated amortization of $157.1 million atDecember 31, 2011. The following table reflects these intangible assets by major category:

December 31, 2012 December 31, 2011

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(In thousands)

GrossCarryingAmount

AccumulatedAmortization

GrossCarryingAmount

AccumulatedAmortization

Customer related $ 183,862 $ 129,904 $ 183,576 $ 119,708Non-compete agreements 1,347 1,310 1,353 1,301Patents 6,909 5,503 6,884 5,145Technology related 29,588 17,551 29,497 14,614Trade names 18,685 11,688 18,538 8,379Other 9,947 6,656 10,749 7,949

Total $ 250,338 $ 172,612 $ 250,597 $ 157,096

Amortization expense for intangible assets was $17.6 million, $31.5 million and $33.0 million for2012, 2011 and 2010, respectively. The following table shows the estimated amortization expensefor the next five fiscal years based on current intangible assets.

(In thousands) 2013 2014 2015 2016 2017

Estimated amortizationexpense (a) $ 16,500 $ 14,250 $ 9,750 $ 8,000 $ 4,250

(a) These estimated amortization expense amounts do not reflect the potential effect of future foreign currencyexchange rate fluctuations.

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12 Months Ended 12 Months Ended

Employee Benefit Plans(Details 4) (USD $) Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2010

Dec. 31,2010

Otherexpense

Dec. 31,2012

Minimum

Dec. 31,2011

Minimum

Dec. 31,2010

Minimum

Dec. 31, 2012CumberlandMD Vicinity

BuildingConstruction

EmployeesTrust FundMinimum

Dec. 31, 2011CumberlandMD Vicinity

BuildingConstruction

EmployeesTrust FundMinimum

Dec. 31, 2010CumberlandMD Vicinity

BuildingConstruction

EmployeesTrust FundMinimum

Jun. 30,2012New

ZealandSteel

PensionFund

Jun. 30,2011New

ZealandSteel

PensionFund

Dec. 31,2012New

ZealandSteel

PensionFund

Minimum

Dec. 31,2011New

ZealandSteel

PensionFund

Minimum

Dec. 31,2010New

ZealandSteel

PensionFund

Minimum

Dec. 31, 2012All other

multiemployerplans

Dec. 31, 2011All other

multiemployerplans

Dec. 31, 2010All other

multiemployerplans

Dec. 31, 2012Significant

multiemployerplans for

which planfinancial

information ispubliclyavailable

outside theCompany's

financialstatements

CumberlandMD Vicinity

BuildingConstruction

EmployeesTrust Fund

Dec. 31, 2011Significant

multiemployerplans for

which planfinancial

information ispubliclyavailable

outside theCompany's

financialstatements

CumberlandMD Vicinity

BuildingConstruction

EmployeesTrust Fund

Dec. 31, 2010Significant

multiemployerplans for

which planfinancial

information ispubliclyavailable

outside theCompany's

financialstatements

CumberlandMD Vicinity

BuildingConstruction

EmployeesTrust Fund

Dec. 31, 2012Significant

multiemployerplans for

which planfinancial

information ispubliclyavailable

outside theCompany's

financialstatements

GreaterPennsylvaniaCarpenters'

Pension Fund

Dec. 31, 2011Significant

multiemployerplans for

which planfinancial

information ispubliclyavailable

outside theCompany's

financialstatements

GreaterPennsylvaniaCarpenters'

Pension Fund

Dec. 31, 2010Significant

multiemployerplans for

which planfinancial

information ispubliclyavailable

outside theCompany's

financialstatements

GreaterPennsylvaniaCarpenters'

Pension Fund

Dec. 31, 2012Significant

multiemployerplans for

which planfinancial

information ispubliclyavailable

outside theCompany's

financialstatements

OhioCarpenters'Pension Plan

Dec. 31, 2011Significant

multiemployerplans for

which planfinancial

information ispubliclyavailable

outside theCompany's

financialstatements

OhioCarpenters'Pension Plan

Dec. 31, 2010Significant

multiemployerplans for

which planfinancial

information ispubliclyavailable

outside theCompany's

financialstatements

OhioCarpenters'Pension Plan

Dec. 31, 2012Significant

multiemployerplans for

which planfinancial

information isnot publicly

availableoutside theCompany's

financialstatements

New ZealandSteel Pension

Fund

Dec. 31, 2011Significant

multiemployerplans for

which planfinancial

information isnot publicly

availableoutside theCompany's

financialstatements

New ZealandSteel Pension

Fund

Dec. 31, 2010Significant

multiemployerplans for

which planfinancial

information isnot publicly

availableoutside theCompany's

financialstatements

New ZealandSteel Pension

Fund

Multiemployer Plans [LineItems]Minimum contribution to theplan in a plan year to classifyit as a significant plan as apercent of total contributions(as a percent)

5.00% 5.00% 5.00%

Contributions By TheCompany

$15,814,000

[1],[2] $20,281,000

[1],[2] $17,157,000

[1],[2] $12,489,000

[1] $16,418,000

[1] $13,602,000

[1] $ 472,000 [1] $ 477,000 [1] $ 556,000 [1] $ 1,176,000 [1] $ 1,542,000 [1] $ 1,412,000 [1] $ 768,000 [1] $ 953,000 [1] $ 777,000 [1] $ 909,000 [1] $ 891,000 [1] $ 810,000 [1]

Withdrawal cost related tomulti-employer planswithdrawn or plans towithdraw

8,300,000 8,300,000

Multi-employer Plan, PeriodContributions PercentageThreshold

5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Total assets 252,500,000253,900,000Total actuarial present value ofaccumulated plan benefits 283,700,000278,400,000

Total contributions for allparticipating employers

$10,600,000

$11,300,000

[1] These amounts represent either contributions for the plan year as confirmed by plan sponsors or the Company's estimates based on its fiscal year accounts payable records which will be updated as confirmation is received from plan sponsors.[2] Contributions to multiemployer pension plans in 2010 do not include $8.3 million of plan withdrawal costs triggered as the Company has ceased, or expects to cease, contributing to ten multiemployer plans for certain locations as part of the Harsco Infrastructure Segment's restructuring initiatives. These restructuring initiatives are described in Note 18, Restructuring Programs. The $8.3 million of costs is included in the Other expenses line of the Consolidated

Statements of Operations, as described in Note 16, Other Expenses.

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12 Months EndedAccounts Receivable andInventories Dec. 31, 2012

Accounts Receivable andInventories [Abstract]Accounts Receivable andInventories

Accounts Receivable and Inventories

Accounts receivable consist of the following:

Accounts Receivable

(In thousands)December 31

2012December 31

2011

Trade accounts receivable $ 617,517 $ 636,304Less: Allowance for doubtful accounts (17,253) (17,829)

Trade accounts receivable, net $ 600,264 $ 618,475

Other receivables (a) $ 39,836 $ 44,431(a) Other receivables include insurance claim receivables, employee receivables, tax claim receivables and other

miscellaneous receivables not included in Trade accounts receivable, net.

The provision for doubtful accounts related to trade accounts receivable for the years endedDecember 31, 2012, 2011 and 2010:

Years Ended December 31

(In thousands) 2012 2011 2010

Provision for doubtful accounts related to tradeaccounts receivable $ 11,266 $ 7,880 $ 9,962

Inventories consist of the following:

Inventories

(In thousands)December 31

2012December 31

2011

Finished goods $ 69,904 $ 78,445Work-in-process 28,944 34,041Raw materials and purchased parts 99,058 92,995Stores and supplies 38,606 36,453

Total inventories $ 236,512 $ 241,934

Valued at lower of cost or market:LIFO basis $ 108,633 $ 115,523FIFO basis 14,641 13,087

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Average cost basis 113,238 113,324

Total inventories $ 236,512 $ 241,934

Inventories valued on the LIFO basis at December 31, 2012 and 2011 were approximately $28.5million and $28.6 million, respectively, less than the amounts of such inventories valued atcurrent costs.

As a result of reducing certain inventory quantities valued on the LIFO basis, net incomeincreased from that which would have been recorded under the FIFO basis of valuation by $0.1million, $0.1 million and $0.4 million in 2012, 2011 and 2010, respectively.

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12 Months EndedProperty, Plant andEquipment Dec. 31, 2012

Property, Plant andEquipment [Abstract]Property, Plant and Equipment Property, Plant and Equipment

Property, plant and equipment consist of the following:

(In thousands)Estimated

Useful LivesDecember 31

2012December 31

2011

Land — $ 26,336 $ 26,729Land improvements 5-20 years 14,199 17,960Buildings and improvements 5-40 years 190,078 186,799Machinery and equipment 3-20 years 2,950,384 2,977,521Uncompleted construction — 107,633 66,719Gross property, plant and equipment 3,288,630 3,275,728Less: Accumulated depreciation (2,022,405) (2,001,244)

Property, plant and equipment, net $ 1,266,225 $ 1,274,484

Buildings and improvements include leasehold improvements which are amortized over theshorter of their useful lives or the initial term of the lease.

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12 Months EndedDebt and Credit Agreements Dec. 31, 2012Debt Disclosure [Abstract]Debt and Credit Agreements Debt and Credit Agreements

The Company has credit facilities and commercial paper programs available for use throughoutthe world. The following table illustrates the amounts outstanding on credit facilities andcommercial paper programs, and available credit at December 31, 2012. These credit facilitiesand programs are described in more detail below the table.

Summary of Credit Facilities and Commercial Paper Programs at December 31, 2012

(In thousands)FacilityLimit

OutstandingBalance

AvailableCredit

U.S. commercial paper program $ 550,000 $ 39,497 $ 510,503Euro commercial paper program 263,900 — 263,900Multi-year revolving credit facility (a) 525,000 50,000 475,000

Totals $ 1,338,900 $ 89,497 $ 1,249,403 (b)

(a) U.S.-based program.(b) Although the Company has significant available credit, in practice, the Company limits aggregate commercial

paper and credit facility borrowings at any one-time to a maximum of $525 million (the amount of the back-upfacility).

The Company has a U.S. commercial paper borrowing program under which it can issue up to$550 million of short-term notes in the U.S. commercial paper market. In addition, the Companyhas a 200 million euro commercial paper program, equivalent to approximately $263.9 million atDecember 31, 2012, which can be used to fund the Company's international operations. AtDecember 31, 2012 and 2011, the Company had $39.5 million and $40.0 million outstanding,respectively, under the U.S. commercial paper program. There were no borrowings under the eurocommercial paper program at both December 31, 2012 and 2011. Classification of commercialpaper outstanding is based on the Company's ability and intent to repay such amounts over thesubsequent twelve months, as well as reflects the Company's intent and ability to borrow for aperiod longer than a year. To the extent the Company expects to repay the commercial paperwithin the subsequent twelve months, the amounts are classified as short-term borrowings. AtDecember 31, 2012, the Company classified $39.5 million of commercial paper as long-termdebt. At December 31, 2011, the Company classified $40.0 million of commercial paper andadvances as short-term borrowings.

In March 2012, the Company entered into an Amended and Restated Five Year Credit Agreement(“Credit Agreement”) in the amount of $525 million through a syndicate of 14 banks. TheCredit Agreement matures in March 2017. The Company has the option to increase the amountof the Credit Agreement to $550 million. The Credit Agreement amends and restates theCompany’s multi-year revolving credit facility, which was set to mature in December 2012.There were no borrowings outstanding under the multi-year revolving credit facility uponexecution of the Credit Agreement. There was $50.0 million outstanding under the CreditAgreement at December 31, 2012. Borrowings under the Credit Agreement are available in mostmajor currencies with active markets and at interest rates based upon LIBOR, plus a margin.

During the twelve months ended December 31, 2012, the Company expensed $0.5 million ofpreviously deferred financing costs associated with the prior multi-year revolving credit facilityfor banks that did not participate in the Credit Agreement or banks with decreased obligationsunder the Credit Agreement, all of which occurred in the first quarter of 2012.

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The Company's $25.0 million bilateral credit facility expired in December 2012 and was notrenewed. At December 31, 2012 and 2011, there were no borrowings outstanding on this facility.

At December 31, 2012, the Company's 5.125% notes due September 15, 2013 are classified aslong-term debt on the Consolidated Balance Sheets based on the Company's intent and ability torefinance this debt using either the debt capital markets or borrowings under its CreditAgreement.

Short-term borrowings amounted to $8.6 million and $51.4 million at December 31, 2012 and2011, respectively. The December 31, 2011 short-term borrowings balance included $40.0 millionof commercial paper. Other than the commercial paper borrowings, short-term borrowings consistprincipally of bank overdrafts. The weighted-average interest rate for short-term borrowings atDecember 31, 2012 and 2011 was 4.9% and 1.3%, respectively.

Long-Term Debt

(In thousands)December 31

2012December 31

2011

5.75% notes due May 15, 2018 $ 447,931 $ 447,6135.125% notes due September 15, 2013 149,875 149,7052.7% notes due October 15, 2015 249,022 248,681Other financing payable in varying amounts due principallythrough 2018 with a weighted-average interest rate of 2.7% and9.4% at December 31, 2012 and 2011, respectively 113,878 11,359

960,706 857,358Less: current maturities (3,278) (3,558)

Total Long-term Debt $ 957,428 $ 853,800

The maturities of long-term debt for the four years following December 31, 2013 are as follows:

(In thousands)

2014 $ 14,7702015 252,3122016 1,3572017 240,683

Cash payments for interest on all debt were $45.5 million, $46.4 million and $59.9 million in2012, 2011 and 2010, respectively.

The Company’s Credit Agreement contains covenants that stipulate a maximum debt to capitalratio of 60%, limit the proportion of subsidiary consolidated indebtedness to a maximum of 10%of consolidated tangible assets and specifies a minimum ratio of total consolidated earningsbefore interest, taxes, depreciation and amortization to consolidated interest charges of 3.0:1. TheCompany’s 5.75% and 2.7% notes include covenants that require the Company to offer torepurchase the notes at 101% of par in the event of a change of control of the Company ordisposition of substantially all of the Company’s assets in combination with a downgrade in theCompany’s credit rating to non-investment grade. At December 31, 2012, the Company was incompliance with these covenants.

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12 Months EndedCapital Stock (Details) (USD$) Dec. 31,

2012Dec. 31,

2011Dec. 31,

2010Jan. 28,

2013Equity [Abstract]Common stock authorized (in shares) 150,000,000Preferred stock authorized (in shares) 4,000,000Common stock authorized, par value (in dollars per share) $ 1.25 $ 1.25Preferred stock authorized, par value (in dollars per share) $ 1.25Shares Authorized to Be Purchased [Roll Forward]Shares Authorized for Purchased, Beginning Balance 1,713,423 2,000,0002,000,000Additional Shares Authorized for Purchase 0 0 0Shares Purchased 0 286,577 0Remaining Shares Authorized for Purchase, Ending Balance 1,713,423 1,713,4232,000,000Number of shares authorized to be repurchased 2,000,000Preferred Stock Purchase Rights AgreementClass of Warrant or Right [Line Items]Number of rights distributed for each share of common stockoutstanding 1

Minimum percentage of common stock to be acquired to triggerexercise of rights 15.00%

Number of securities called by rights (in shares) 0.01Exercise price of warrant or right (in dollars per share) 230Multiplier of exercise price of right to determine common sharepurchase rights 2

Redemption price per right (in dollars per share) $ 0.001Number of business days following the acquisition of stock afterwhich rights become exercisable 10 days

Preferred stock reserved for issuance upon exercise of rights (inshares) 805,846 804,772

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12 Months EndedSCHEDULE II.VALUATION AND

QUALIFYING ACCOUNTS(Details) (USD $)

In Thousands, unlessotherwise specified

Dec. 31, 2012 Dec. 31, 2011 Dec. 31, 2010

Allowance for Doubtful AccountsMovement in Valuation Allowances and Reserves [Roll Forward]Balance at Beginning of Period $ 17,829 $ 20,283 $ 24,495Charged to Cost and Expenses 11,266 7,880 9,962Due to Currency Translation Adjustments 166 (677) (336)Other (12,008) [1] (9,657) [1] (13,838) [1]

Balance at End of Period 17,253 17,829 20,283Deferred Tax Assets - Valuation AllowanceMovement in Valuation Allowances and Reserves [Roll Forward]Balance at Beginning of Period 99,617 29,469 22,744Charged to Cost and Expenses 18,552 47,575 [2] 4,754Due to Currency Translation Adjustments 3,449 (312) (347)Other 4,914 22,885 [3] 2,318Balance at End of Period $ 126,532 $ 99,617 $ 29,469[1] Includes principally the utilization of previously reserved amounts.[2] Includes principally a valuation allowance recorded to fully offset the U.K. operations' net deferred tax assets

primarily related to U.K. pension liabilities.[3] Includes principally a valuation allowance recorded on other comprehensive income (loss) activity related to

U.K. pension.

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12 Months EndedCapital Stock (Details 3)In Thousands, unlessotherwise specified

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

Restricted stock unitsAntidilutive securitiesNumber of securities not included in computation of diluted earnings pershare (in shares) 148 64 9

Stock optionsAntidilutive securitiesNumber of securities not included in computation of diluted earnings pershare (in shares) 389 755 0

Stock Appreciation Rights (SARs)Antidilutive securitiesNumber of securities not included in computation of diluted earnings pershare (in shares) 530 0 0

Other stock-based compensation unitsAntidilutive securitiesNumber of securities not included in computation of diluted earnings pershare (in shares) 317 554 0

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12 Months Ended 12 MonthsEndedCommitments and

Contingencies (Details) (USD$)

In Millions, unless otherwisespecified

Dec. 31, 2012Environmental

Dec. 31, 2011Environmental

Dec. 31, 2010Environmental

Dec. 31,2012

BrazilianTax

Disputes- Case 1

Aug. 31,2005

BrazilianTax

Disputes- Case 2

Dec. 31,2012

Otherdefendants

caseclaim

Commitments andContingenciesAccruals for environmentalmatters $ 1.9 $ 2.5

Charges related toenvironmental matters 1.2 2.0 2.6

Estimated claims orassessment, before tax 3 3

Estimated claims orassessment, additional amount 29 9

Estimated claims orassessment, aggregate amount 12

Approximate number ofdefendants in claims againstthe company (in persons)

90

Minimum amount of damages 20Maximum amount of damages $ 25Number of pending claims 18,302Number of claims pending inNew York Supreme Court 17,813

Number of claims pending invarious counties in a number ofstate courts, and in certainFederal Distrct Courts

489

Number of claims dismissed todate by stipulation or summaryjudgment prior to trial

26,480

Number of active or inextremis cases in New YorkCounty

651

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12 Months EndedGoodwill and OtherIntangible Assets (Tables) Dec. 31, 2012

Goodwill and Intangible AssetsDisclosure [Abstract]Schedule of Goodwill The following table reflects the changes in carrying amounts of goodwill by segment (there is

no goodwill associated with the Harsco Industrial Segment) for the years ended December 31,2012 and 2011:

(In thousands)

HarscoMetals

& MineralsSegment

HarscoInfrastructure

Segment

HarscoRail

SegmentConsolidated

Totals

Balance at December 31, 2010 $ 418,276 $ 263,212 $ 9,299 $ 690,787Changes to goodwill — (115) 11 (104)Foreign currency translation (6,400) (3,382) — (9,782)Balance at December 31, 2011 411,876 259,715 9,310 680,901Changes to goodwill (a) — (2,295) — (2,295)Goodwill impairment — (265,038) — (265,038)Foreign currency translation 8,012 7,618 — 15,630

Balance at December 31, 2012 $ 419,888 $ — $ 9,310 $ 429,198(a) Changes to goodwill relate principally to the allocation of goodwill, in accordance with U.S. GAAP, to

components of the Harsco Infrastructure Segment that were disposed of as part of the 2011/2012Restructuring Program.

Schedule of Acquired Finite-Lived Intangible Assets by MajorClass

The following table reflects these intangible assets by major category:

December 31, 2012 December 31, 2011

(In thousands)

GrossCarryingAmount

AccumulatedAmortization

GrossCarryingAmount

AccumulatedAmortization

Customer related $ 183,862 $ 129,904 $ 183,576 $ 119,708Non-compete agreements 1,347 1,310 1,353 1,301Patents 6,909 5,503 6,884 5,145Technology related 29,588 17,551 29,497 14,614Trade names 18,685 11,688 18,538 8,379Other 9,947 6,656 10,749 7,949

Total $ 250,338 $ 172,612 $ 250,597 $ 157,096

Schedule of Finite-LivedIntangible Assets, FutureAmortization Expense

The following table shows the estimated amortization expense for the next five fiscal yearsbased on current intangible assets.

(In thousands) 2013 2014 2015 2016 2017

Estimated amortizationexpense (a) $ 16,500 $ 14,250 $ 9,750 $ 8,000 $ 4,250

(a) These estimated amortization expense amounts do not reflect the potential effect of future foreign currencyexchange rate fluctuations.

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12 Months Ended 12 Months Ended 12 Months Ended

Property, Plant andEquipment (Details) (USD $)

In Thousands, unlessotherwise specified

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

Dec.31,

2012Land

Dec.31,

2011Land

Dec. 31, 2012Land

improvements

Dec. 31, 2011Land

improvements

Dec. 31, 2012Land

improvementsMinimum

Dec. 31, 2012Land

improvementsMaximum

Dec. 31, 2012Buildings andimprovements

Dec. 31, 2011Buildings andimprovements

Dec. 31, 2012Buildings andimprovements

Minimum

Dec. 31, 2012Buildings andimprovements

Maximum

Dec. 31,2012

Machineryand

equipment

Dec. 31,2011

Machineryand

equipment

Dec. 31,2012

Machineryand

equipmentMinimum

Dec. 31,2012

Machineryand

equipmentMaximum

Dec. 31, 2012Uncompletedconstruction

Dec. 31, 2011Uncompletedconstruction

Property, Plant andEquipment [Line Items]Gross property, plant andequipment

$3,288,630

$3,275,728

$26,336

$26,729$ 14,199 $ 17,960 $ 190,078 $ 186,799 $

2,950,384$2,977,521 $ 107,633 $ 66,719

Less: Accumulateddepreciation (2,022,405) (2,001,244)

Property, plant and equipment,net

$1,266,225

$1,274,484

$1,366,973

Estimated Useful Lives 5 years 20 years 5 years 40 years 3 years 20 years

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12 Months EndedCapital Stock Dec. 31, 2012Equity [Abstract]Capital Stock Capital Stock

The authorized capital stock of the Company consists of 150,000,000 shares of common stockand 4,000,000 shares of preferred stock, both having a par value of $1.25 per share. The preferredstock is issuable in series with terms as fixed by the Board of Directors (the "Board"). Nopreferred stock has been issued. Under the Company's Preferred Stock Purchase RightsAgreement (the "Agreement"), the Board authorized and declared a dividend distribution of oneright for each share of common stock outstanding on the record date. The rights may only beexercised if, among other things and with certain exceptions, a person or group has acquired 15%or more of the Company's common stock without the prior approval of the Board. Each rightentitles the holder to purchase 1/100th share of Harsco Series A Junior Participating CumulativePreferred Stock at an exercise price of $230. Once the rights become exercisable, the holder of aright will be entitled, upon payment of the exercise price, to purchase a number of shares ofcommon stock calculated to have a value of two times the exercise price of the right. The rightsexpire on October 9, 2017, do not have voting power, and may be redeemed by the Company at aprice of $0.001 per right at any time until the 10th business day following public announcementthat a person or group has accumulated 15% or more of the Company's common stock. TheAgreement also includes an exchange feature. At December 31, 2012 and 2011, 805,846 and804,772 shares, respectively, of $1.25 par value preferred stock were reserved for issuance uponexercise of the rights.

The Board of Directors has authorized the repurchase of shares of common stock as follows:

SharesAuthorized

to bePurchasedJanuary 1

AdditionalShares

Authorizedfor

PurchaseShares

Purchased

RemainingShares

Authorizedfor

PurchaseDecember 31

2010 2,000,000 — — 2,000,0002011 2,000,000 — 286,577 1,713,4232012 1,713,423 — — 1,713,423

At December 31, 2012, 1,713,423 shares remained available for repurchase under the Company'sshare repurchase program. On January 28, 2013, the Board of Directors increased the number ofshares available for repurchase under the Company's share repurchase program and extended theprogram for one additional year. As a result, the Company is currently authorized to repurchaseup to 2,000,000 shares through January 31, 2014. When and if appropriate, repurchases are madein open market transactions, depending on market conditions. Share repurchases may not occurand may be discontinued at any time.

In addition to the above purchases,14,677, 28,503 and 38,909 shares were repurchased in 2012,2011 and 2010, respectively, in connection with the issuance of shares as a result of vestedrestricted stock units. In 2012, no shares were repurchased in connection with the issuance ofshares as a result of stock option exercises. In 2011 and 2010, the Company repurchased 41,974and 24,008 shares, respectively, in connection with the issuance of shares as a result of stockoption exercises. In 2012, the Company repurchased 10,536 shares in connection with theissuance of shares as a result of other stock grants. No such repurchases were made in 2011 or2010. The following table summarizes the Company's common stock:

Common Stock

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SharesIssued

TreasuryShares

OutstandingShares

Outstanding, January 1, 2010 111,387,185 31,034,126 80,353,059Stock Options Exercised 115,493 24,008 91,485Vested Restricted Stock Units 108,424 38,909 69,515Outstanding, December 31, 2010 111,611,102 31,097,043 80,514,059Stock Options Exercised 199,032 41,974 157,058Vested Restricted Stock Units 121,133 28,503 92,630Treasury Shares Purchased — 286,577 (286,577)Outstanding, December 31, 2011 111,931,267 31,454,097 80,477,170Stock Options Exercised 38,900 — 38,900Vested Restricted Stock Units 45,898 14,677 31,221Other Stock Grants 47,873 10,536 37,337

Outstanding, December 31, 2012 112,063,938 31,479,310 80,584,628

The following is a reconciliation of the average shares of common stock used to compute basicearnings per common share to the shares used to compute diluted earnings per common share asshown in the Consolidated Statements of Operations:

(Amounts in thousands, except per share data) 2012 2011 2010

Income (loss) from continuing operations attributableto Harsco Corporation common stockholders $ (253,693) $ (9,447) $ 10,885

Weighted-average shares outstanding—basic 80,632 80,736 80,569Dilutive effect of stock-based compensation — — 192

Weighted-average shares outstanding—diluted 80,632 80,736 80,761Earnings (loss) from continuing operations percommon share, attributable to Harsco Corporationcommon stockholders:

Basic $ (3.15) $ (0.12) $ 0.14

Diluted $ (3.15) $ (0.12) $ 0.13

The following average outstanding stock-based compensation units were not included in thecomputation of diluted earnings per share because the effect was antidilutive:

(In thousands) 2012 2011 2010

Restricted stock units 148 64 9Stock options 389 755 —Stock appreciation rights 530 — —Other stock-based compensation units 317 554 —

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12 Months EndedComponents of AccumulatedOther Comprehensive Loss Dec. 31, 2012

Comprehensive Income (Loss),Net of Tax, Attributable toParent [Abstract]Components of AccumulatedOther Comprehensive Loss

Components of Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss is included on the Consolidated Statements ofStockholders' Equity. The components of Accumulated other comprehensive loss, net of theeffect of income taxes, are as follows:

Accumulated Other Comprehensive Loss—Net of Tax

December 31

(In thousands) 2012 2011

Cumulative foreign exchange translation adjustments $ 62,308 $ 51,313Effective portion of cash flow hedges (8,139) (3,807)Cumulative unrecognized actuarial losses on pensionobligations (465,286) (411,641)Unrealized loss on marketable securities (51) (56)

Accumulated other comprehensive loss $ (411,168) $ (364,191)

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12 Months EndedAcquisitions andDispositions (Details) (USD

$) Dec. 31, 2012 Dec. 31,2011

Dec. 31,2010

Acquisitions and Dispositions [Abstract]Reduction of contingent consideration liabilities $ 0 $ 3,966,000 $

10,620,000Net Income Attributable to the Company and Transfers toNoncontrolling InterestNet income (loss) attributable to the Company (254,612,000) (11,510,000) 6,754,000Decrease in the Company's paid-in capital for purchase of noncontrollinginterests 0 0 (1,003,000)

Change from net income (loss) attributable to the Company and transfersto noncontrolling interest (254,612,000) (11,510,000) 5,751,000

Business Acquisition [Line Items]After-tax loss from discontinued operations 919,000 2,063,000 4,131,000Assets held-for-sale, current 2,400,000 7,200,000Gas Technologies DivestitureBusiness Acquisition [Line Items]After-tax loss from discontinued operations $ 900,000 $ 2,100,000 $

4,100,000

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12 Months EndedFinancial Instruments(Tables) Dec. 31, 2012

Derivative Instruments andHedging ActivitiesDisclosure [Abstract]Schedule of DerivativeInstruments in Statement ofFinancial Position, Fair Value

The fair value of outstanding derivative contracts recorded as assets and liabilities on the Consolidated BalanceSheets at December 31, 2012 and 2011 was as follows:

Asset Derivatives Liability Derivatives

(in thousands)Balance Sheet

Location Fair Value Balance Sheet Location Fair Value

December 31, 2012Derivatives designated as hedging instruments:Cross currency interest rate swaps Other assets $ 39,058 Other liabilities $ 14,346

Derivatives not designated as hedging instruments:Foreign currency forward exchangecontracts

Other currentassets $ 853

Other currentliabilities $ 1,775

Asset Derivatives Liability Derivatives

(in thousands)Balance Sheet

Location Fair Value Balance Sheet Location Fair Value

December 31, 2011Derivatives designated as hedging instruments:Foreign currency forward exchangecontracts

Other currentassets $ 274

Other currentliabilities $ —

Cross currency interest rate swaps Other assets 44,636 Other liabilities 1,792Total derivatives designated ashedging instruments $ 44,910 $ 1,792

Derivatives not designated as hedging instruments:Foreign currency forward exchangecontracts

Other currentassets $ 2,912

Other currentliabilities $ 1,207

Schedule of DerivativeInstruments, Gain (Loss) inStatement of FinancialPerformance

The effect of derivative instruments in the Consolidated Statements of Operations and the ConsolidatedStatements of Comprehensive Income during 2012, 2011 and 2010 was as follows:

Derivatives Designated as Hedging Instruments

(Inthousands)

Amount ofGain (Loss)

Recognized inOther

ComprehensiveIncome

("OCI") onDerivative—Effective

Portion

Location of Gain(Loss) Reclassified

fromAccumulated

OCI intoIncome—Effective

Portion

Amount ofGain (Loss)Reclassified

fromAccumulated

OCI intoIncome—Effective

Portion

Location of Gain(Loss) Recognized

in Income onDerivative—Ineffective

Portionand Amount

Excluded fromEffectiveness

Testing

Amount ofGain (Loss)Recognizedin Income

onDerivative—Ineffective

Portion andAmount

Excludedfrom Effectiveness

Testing

Twelve Months Ended December 31, 2012:Foreigncurrencyforwardexchangecontracts $ (152)

Cost ofservices andproducts sold $ 270 $ —

Crosscurrencyinterest rateswaps (4,748) —

Cost of servicesand products sold (13,384) (a)

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$ (4,900) $ 270 $ (13,384)Twelve Months Ended December 31, 2011:Foreigncurrencyforwardexchangecontracts $ 887 $ 83 $ —Crosscurrencyinterest rateswaps 7,230 —

Cost of servicesand products sold 7,642 (a)

$ 8,117 $ 83 $ 7,642Twelve Months Ended December 31, 2010:Foreigncurrencyforwardexchangecontracts $ 32 $ — $ —

Commoditycontracts 20

Cost ofservices andproducts sold 20

Cost of servicesand products sold 10

Crosscurrencyinterest rateswaps (1,119) —

Cost of servicesand products sold 21,734 (a)

$ (1,067) $ 20 $ 21,744(a) These gains (losses) offset foreign currency fluctuation effects on the debt principal.

Derivatives Not Designated as Hedging Instruments

Amount of Gain (Loss) Recognized in Income onDerivative for the Twelve Months Ended

December 31(a)

(In thousands)

Location of Gain (Loss)Recognized in Income on

Derivative 2012 2011 2010

Foreign currency forward exchangecontracts

Cost of services andproducts sold $ (3,529) $ 7,238 $ 1,483

(a) These gains (losses) offset amounts recognized in cost of service and products sold principally as a result of intercompany orthird-party foreign currency exposures.

Schedule of Notional Amountsand Recognized Gain (Loss)for Foreign Currency ForwardExchange Contracts

ontracted Amounts of Foreign Currency Exchange Forward Contracts Outstanding at December 31,2012:

(In thousands) TypeU.S. DollarEquivalent Maturity

RecognizedGain (Loss)

British pounds sterling Sell $ — $ —

British pounds sterling Buy 6,141January 2013 through February

2013 58

Euros Sell 264,234January 2013 through March

2013 (1,082)

Euros Buy 116,618January 2013 through February

2013 187

Other currencies Sell 2,811January 2013 through March

2013 (15)Other currencies Buy 44,291 January 2013 (71)

Total $ 434,095 $ (923)

Contracted Amounts of Foreign Currency Exchange Forward Contracts Outstanding at December 31,2011:

(In thousands) TypeU.S. DollarEquivalent Maturity

RecognizedGain (Loss)

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British pounds sterling Sell $ 18,350 January 2012 $ (20)British pounds sterling Buy 4,364 January 2012 (12)

Euros Sell 178,889January 2012 through October

2012 2,345

Euros Buy 105,247January 2012 through April

2012 (878)

Other currencies Sell 2,957January 2012 through March

2012 62Other currencies Buy 14,656 January 2012 235

Total $ 324,463 $ 1,732

Schedule of DerivativeInstruments

The following table indicates the contractual amounts of the Company's cross currency interest rate swaps:

Interest Rates

(In millions)Contractual

Amounts Receive Pay

Maturing 2018 $ 250.0 Fixed U.S. dollar rate Fixed euro rateMaturing 2020 220.0 Fixed U.S. dollar rate Fixed British pound sterling rateMaturing 2013 through 2017 4.8 Floating U.S. dollar rate Fixed rupee rate

Schedule of Fair Value, Assetsand Liabilities Measured onRecurring Basis

The following table indicates the fair value hierarchy of the financial instruments of the Company atDecember 31, 2012 and 2011:

Level 2 Fair Value Measurements(In thousands)

December 312012

December 312011

AssetsForeign currency forward exchange contracts $ 853 $ 3,186Cross currency interest rate swaps 39,058 44,636

LiabilitiesForeign currency forward exchange contracts 1,775 1,207Cross currency interest rate swaps 14,346 1,792

Fair Value, LiabilitiesMeasured on Recurring Basis,Unobservable InputReconciliation

The following table reconciles the beginning and ending balances for liabilities measured on a recurring basisusing unobservable inputs (Level 3) for 2012 and 2011:

Level 3 Liabilities—Contingent Consideration for the Twelve Months Ended December 31(In thousands) 2012 2011

Balance at beginning of year $ — $ 3,872Fair value adjustments included in earnings — (3,966)Effect of exchange rate changes — 94

Balance at end of year $ — $ —

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12 Months EndedCONSOLIDATEDSTATEMENTS OF

COMPREHENSIVEINCOME (LOSS) (USD $)

In Thousands, unlessotherwise specified

Dec. 31,2012

Dec. 31,2011

Dec.31,

2010

Net income (loss) $(254,101) $ (9,556) $

12,459Other comprehensive income (loss):Foreign currency translation adjustments, net of deferred income taxes 11,434 (60,575) (6,633)Net gains (losses) on cash flow hedging instruments, net of deferred income taxes of$567, $(2,126) and $355 in 2012, 2011 and 2010, respectively (4,333) 5,991 (712)

Reclassification adjustment for (gain) loss on cash flow hedging instruments, net ofdeferred income taxes $25 and $(8) in 2011 and 2010, respectively 0 (58) 12

Pension liability adjustments, net of deferred income taxes of $7,572, $19,143 and$(9,727) in 2012, 2011 and 2010, respectively (53,645) (123,827) 22,872

Unrealized gain (loss) on marketable securities, net of deferred income taxes of $(3),$7 and $(8) in 2012, 2011 and 2010, respectively 6 (11) 12

Reclassification adjustment for gain on marketable securities, net of deferred incometaxes of $1 in 2010 0 0 (2)

Total other comprehensive income (loss) (46,538) (178,480) 15,549Total comprehensive income (loss) (300,639) (188,036) 28,008Less: Comprehensive income attributable to noncontrolling interests (950) (1,733) (5,502)Comprehensive income (loss) attributable to Harsco Corporation $

(301,589)$(189,769)

$22,506

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12 Months EndedSummary of SignificantAccounting Policies Dec. 31, 2012

Accounting Policies[Abstract]Summary of SignificantAccounting Policies

Summary of Significant Accounting Policies

ConsolidationThe consolidated financial statements include all accounts of Harsco Corporation (the"Company"), all entities in which the Company has a controlling voting interest, and variableinterest entities required to be consolidated in accordance with generally accepted accountingprinciples in the United States ("U.S. GAAP"). Intercompany accounts and transactions havebeen eliminated among consolidated entities.

The Company's management has evaluated all activity of the Company and concluded thatsubsequent events are properly reflected in the Company's consolidated financial statements andnotes as required by U.S. GAAP.

ReclassificationsCertain reclassifications have been made to prior year amounts to conform with current yearclassifications.

Cash and Cash EquivalentsCash and cash equivalents include cash on hand, demand deposits and short-term investmentsthat are highly liquid in nature and have an original maturity of three months or less.

InventoriesInventories are stated at the lower of cost or market. Inventories in the United States areprincipally accounted for using the last-in, first-out ("LIFO") method. Other inventories areaccounted for using the first-in, first-out ("FIFO") or average cost methods.

DepreciationProperty, plant and equipment is recorded at cost and depreciated over the estimated useful livesof the assets using principally the straight-line method. When property is retired from service, thecost of the retirement is charged to the allowance for depreciation to the extent of theaccumulated depreciation and the balance is charged to income. Long-lived assets to be disposedof by sale are not depreciated while they are held for sale.

LeasesThe Company leases certain property and equipment under noncancelable lease agreements. Alllease agreements are evaluated and classified as either an operating lease or capital lease. A leaseis classified as a capital lease if any of the following criteria are met: transfer of ownership to theCompany by the end of the lease term; the lease contains a bargain purchase option; the leaseterm is equal to or greater than 75% of the asset's economic life; or the present value of futureminimum lease payments is equal to or greater than 90% of the asset's fair market value.Operating lease expense is recognized ratably over the lease term, including rent abatementperiods and rent holidays.

Goodwill and Other Intangible AssetsIn accordance with U.S. GAAP, goodwill is not amortized and is tested for impairment at leastannually or more frequently if indicators of impairment exist or if a decision is made to dispose ofa business. Goodwill is allocated among and evaluated for impairment at the reporting unit level,which is defined as an operating segment or one level below an operating segment for whichdiscrete financial information is available. A significant amount of judgment is involved indetermining if an indicator of impairment has occurred. Such indicators may include decliningcash flows or operating losses at the reporting unit level, a significant adverse change in legalfactors or in the business climate, an adverse action or assessment by a regulator, unanticipated

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competition, a loss of key personnel, or a more-likely-than-not expectation that a reporting unit ora significant portion of a reporting unit will be sold or otherwise disposed of, among others.

The Company performs the annual goodwill impairment test as of October 1. The Company hasseven reporting units (only three of which have goodwill associated with them as ofDecember 31, 2012), of which two are included in the Harsco Metals & Minerals Segment. Theremaining reporting unit is the Harsco Rail Segment. Almost all of the Company's goodwill isallocated to the Harsco Metals business, which is included in the Harsco Metals & MineralsSegment.

The evaluation of potential goodwill impairment involves comparing the current fair value ofeach reporting unit to its net book value, including goodwill. The Company uses a discountedcash flow model (“DCF model”) to estimate the current fair value of reporting units, asmanagement believes forecasted operating cash flows are the best indicator of current fair value.A number of significant assumptions and estimates are involved in the preparation of DCFmodels including future revenues and operating margin growth, the weighted-average cost ofcapital (“WACC”), tax rates, capital spending, pension funding, the impact of business initiatives,and working capital projections. These assumptions and estimates may vary significantly betweenreporting units. DCF models are based on approved operating plans for the early years andhistorical relationships and projections for later years. WACC rates are derived from internal andexternal factors including, but not limited to, the average market price of the Company's stock,shares outstanding, book value of the Company's debt, the long-term risk free interest rate, andboth market and size-specific risk premiums. Due to the many variables noted above and therelative size of the Company's goodwill, differences in assumptions may have a material impacton the results of the Company's annual goodwill impairment testing. If the net book value of areporting unit were to exceed its current fair value, the second step of the goodwill impairmenttest would be required to determine if an impairment existed and the amount of goodwillimpairment to record, if any. The second step of the goodwill impairment test compares the netbook value of a reporting unit's goodwill with the implied fair value of that goodwill. The impliedfair value of goodwill represents the excess of fair value of the reporting unit over the fair valueamounts assigned to all of the assets and liabilities of the reporting unit if it were to be acquired ina business combination and the current fair value of the reporting unit represented the purchaseprice. The second step of the goodwill impairment test requires the utilization of valuationexperts. The valuation of goodwill for the second step of the goodwill impairment test isconsidered a level 3 fair value measurement.

Impairment of Long-Lived Assets (Other than Goodwill)Long-lived assets are reviewed for impairment when events and circumstances indicate that thecarrying amount of an asset may not be recoverable. The Company's policy is to determine if animpairment loss exists when it is determined that the carrying amount of the asset exceeds thesum of the expected undiscounted future cash flows resulting from use of the asset, and itseventual disposition. Impairment losses are measured as the amount by which the carryingamount of the asset exceeds its fair value, normally as determined in either open markettransactions or through the use of a discounted cash flow model. Long-lived assets to be disposedof are reported at the lower of the carrying amount or fair value less cost to sell.

Revenue RecognitionService revenues and product revenues are recognized when they are realized or realizable andwhen earned. Revenue is realized or realizable and earned when all of the following criteria aremet: persuasive evidence of an arrangement exists, delivery has occurred or services have beenrendered, the Company's price to the buyer is fixed or determinable and collectability isreasonably assured. Service revenues include the Harsco Infrastructure Segment as well asservice revenues of the Harsco Metals & Minerals Segment and Harsco Rail Segment. Productrevenues include the Harsco Industrial Segment and the product revenues of the Harsco Metals &Minerals Segment and the Harsco Rail Segment.

Harsco Metals & Minerals Segment—This Segment provides services predominantly on a long-term, volume-of-production contract basis. Contracts may include both fixed monthly fees as well

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as variable fees based upon specific services provided to the customer. The fixed-fee portion isrecognized periodically as earned (normally monthly) over the contractual period. The variable-fee portion is recognized as services are performed and differs from period to period based uponthe actual provision of services. This Segment also sells industrial abrasives and roofing granulesproducts. Product revenues are recognized generally when title and risk of loss transfer, and whenall of the revenue recognition criteria have been met. Title and risk of loss for domestic shipmentsgenerally transfer to the customer at the point of shipment. For export sales, title and risk of losstransfer in accordance with the international commercial terms included in the specific customercontract.

Harsco Infrastructure Segment—This Segment provides services under both fixed-fee and time-and-materials short-term contracts, rents equipment under month-to-month rental contracts and,to a lesser extent, sells products to customers. Equipment rentals are recognized as earned overthe contractual rental period. Services provided on a fixed-fee basis are recognized over thecontractual period based upon the completion of specific units of accounting (i.e., erection anddismantling of equipment). Services provided on a time-and-materials basis are recognized whenearned as services are performed. Product revenue is recognized when title and risk of losstransfer, and when all of the revenue recognition criteria have been met.

Harsco Rail Segment—This Segment sells railway track maintenance equipment, parts andprovides railway track maintenance services. Product revenue is recognized generally when titleand risk of loss transfer, and when all of the revenue recognition criteria have been met. Title andrisk of loss for domestic shipments generally transfer to the customer at the point of shipment.For export sales, title and risk of loss transfer in accordance with the international commercialterms included in the specific customer contract. Revenue may be recognized subsequent to thetransfer of title and risk of loss for certain product sales, if the specific sales contract includes acustomer acceptance clause that provides for different timing. In those situations revenue isrecognized after transfer of title and risk of loss and after customer acceptance. Services arepredominantly on a long-term, time-and-materials contract basis. Revenue is recognized whenearned as services are performed within the long-term contracts.

Harsco Industrial Segment—This Segment sells industrial grating products, heat exchangers, andheat transfer products. Product revenues are generally recognized when title and risk of losstransfer, and when all of the revenue recognition criteria have been met. Title and risk of loss fordomestic shipments generally transfer to the customer at the point of shipment. For export sales,title and risk of loss transfer in accordance with the international commercial terms included inthe specific customer contract.

Income TaxesThe Company accounts for income taxes under the asset and liability method, which requires therecognition of deferred tax assets and liabilities for the expected future tax consequences of theevents that have been included in the consolidated financial statements. Under this method,deferred tax assets and liabilities are determined based on the differences between the financialstatements and tax bases of assets and liabilities using enacted tax rates in effect for the year inwhich the differences are expected to reverse. The effect of a change in tax rates on deferred taxassets and liabilities is recognized in income in the period that includes the enactment date.

The Company records deferred tax assets to the extent that the Company believes that these assetswill more likely than not be realized. In making such determinations, the Company considers allavailable positive and negative evidence, including future reversals of existing deferred taxliabilities, projected future taxable income, tax planning strategies and recent financial results. Inthe event the Company was to determine that it would be able to realize deferred income taxassets in the future in excess of their net recorded amount, an adjustment to the valuationallowance would be made that would reduce the provision for income taxes.

The Company prepares and files its tax returns based on its interpretation of tax laws andregulations and records its provision for income taxes based on these interpretations.

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Uncertainties may exist in estimating the Company's tax provisions and in filing its tax returns inthe many jurisdictions in which the Company operates, and as a result these interpretations maygive rise to an uncertain tax position. The tax benefit from an uncertain tax position is recognizedwhen it is more likely than not that the position will be sustained upon examination, includingresolutions of any related appeals or litigation processes, based on its technical merits. Eachsubsequent period the Company determines if existing or new uncertain tax positions meet amore likely than not recognition threshold and adjust accordingly.

The Company recognizes interest and penalties related to unrecognized tax benefits withinIncome tax expense in the accompanying Consolidated Statements of Operations. Accruedinterest and penalties are included in Other liabilities on the Consolidated Balance Sheets.

In general, it is the practice and the intention of the Company to reinvest the undistributedearnings of its non-U.S. subsidiaries. Should the Company repatriate future earnings, suchamounts would become subject to U.S. taxation upon remittance of dividends and under certainother circumstances, thereby giving recognition to current tax expense and to international taxcredits.

The significant assumptions and estimates described in the preceding paragraphs are importantcontributors to the effective tax rate each year.

Accrued Insurance and Loss ReservesThe Company retains a significant portion of the risk for U.S. workers' compensation, U.K.employers' liability, automobile, general and product liability losses. During 2012, 2011 and2010, the Company recorded insurance expense from continuing operations related to these linesof coverage of $33.8 million, $37.0 million and $38.5 million, respectively. Reserves have beenrecorded that reflect the undiscounted estimated liabilities including claims incurred but notreported. When a recognized liability is covered by third-party insurance, the Company recordsan insurance claim receivable to reflect the covered liability. Changes in the estimates of thereserves are included in net income (loss) in the period determined. During 2012, 2011 and 2010,the Company recorded retrospective insurance reserve adjustments that decreased pre-taxinsurance expense from continuing operations for self-insured programs by $4.3 million, $2.7million and $2.5 million, respectively. At December 31, 2012 and 2011, the Company hasrecorded liabilities of $82.7 million and $85.9 million, respectively, related to both asserted aswell as unasserted insurance claims. Included in the balance at December 31, 2012 and 2011 were$3.6 million and $2.6 million, respectively, of recognized liabilities covered by insurance carriers.Amounts estimated to be paid within one year have been classified as current Insurance liabilities,with the remainder included in non-current Insurance liabilities on the Consolidated BalanceSheets.

WarrantiesThe Company has recorded product warranty reserves of $9.1 million, $5.6 million and $5.0million at December 31, 2012, 2011 and 2010, respectively. The Company provides forwarranties of certain products as they are sold. The following table summarizes the warrantyactivity for 2012, 2011 and 2010:

(In thousands) 2012 2011 2010

Warranty reserves, beginning of the year $ 5,596 $ 5,037 $ 4,078Accruals for warranties issued during the year 7,935 4,003 4,399Reductions related to pre-existing warranties (2,401) (1,769) (1,447)Warranties paid (1,958) (1,677) (2,054)Other (principally foreign currency translation) (80) 2 61

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Warranty reserves, end of the year $ 9,092 $ 5,596 $ 5,037

Warranty expense and payments are incurred principally in the Harsco Rail and Harsco IndustrialSegments. Warranty activity may vary from year to year depending upon the mix of revenues andcontractual terms related to product warranties.

Foreign Currency TranslationThe financial statements of the Company's subsidiaries outside the United States, except for thosesubsidiaries located in highly inflationary economies and those entities for which the U.S. dollaris the currency of the primary economic environment in which the entity operates, are measuredusing the local currency as the functional currency. Assets and liabilities of these subsidiaries aretranslated at the exchange rates at the balance sheet date. Resulting translation adjustments arerecorded in the cumulative translation adjustment account, a separate component of Accumulatedother comprehensive loss on the Consolidated Balance Sheets. Income and expense items aretranslated at average monthly exchange rates. Gains and losses from foreign currency transactionsare included in net income (loss). For subsidiaries operating in highly inflationary economies, andthose entities for which the U.S. dollar is the currency of the primary economic environment inwhich the entity operates, gains and losses on foreign currency transactions and balance sheettranslation adjustments are included in net income (loss). In 2012, 2011 and 2010, the Companyhad no subsidiaries operating in highly inflationary economies.

Financial Instruments and HedgingThe Company has operations throughout the world that are exposed to fluctuations in relatedforeign currencies in the normal course of business. The Company seeks to reduce exposure toforeign currency fluctuations through the use of forward exchange contracts. The Company doesnot hold or issue financial instruments for trading purposes, and it is the Company's policy toprohibit the use of derivatives for speculative purposes. The Company has a Foreign CurrencyRisk Management Committee that meets periodically to monitor foreign currency risks.

The Company executes foreign currency forward exchange contracts to hedge transactions forfirm purchase commitments, to hedge variable cash flows of forecasted transactions and forexport sales denominated in foreign currencies. These contracts are generally for 90 days or less;however, where appropriate, longer-term contracts may be utilized. For those contracts that aredesignated as qualified cash flow hedges, gains or losses are recorded in Accumulated othercomprehensive loss on the Consolidated Balance Sheets.

The Company uses cross currency interest rate swaps in conjunction with certain debt issuancesin order to lock in fixed local currency interest rates. Under these cross currency interest rateswaps, the Company receives interest based on a fixed or variable U.S. dollar rate and paysinterest based on a fixed local currency rate based on the contractual amounts in U.S. dollars andthe local currency, respectively.

Amounts recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheetsare reclassified into operations in the same period or periods during which the hedged forecastedtransaction affects income. The cash flows from these contracts are classified consistent with thecash flows from the transaction being hedged (e.g., the cash flows related to contracts to hedgethe purchase of fixed assets are included in cash flows from investing activities, etc.). TheCompany also enters into certain forward exchange contracts that are not designated as hedges.Gains and losses on these contracts are recognized in operations based on changes in fair marketvalue. For fair value hedges of a firm commitment, the gain or loss on the derivative and theoffsetting gain or loss on the hedged firm commitment are recognized currently in operations.

Earnings Per ShareBasic earnings per share are calculated using the weighted-average shares of common stockoutstanding, while diluted earnings per share reflect the dilutive effects of stock-basedcompensation. All share and per share amounts are restated for any stock splits and stock

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dividends that occur prior to the issuance of the financial statements. See Note 12, Capital Stock,for additional information on earnings per share.

Use of Estimates in the Preparation of Financial StatementsThe preparation of financial statements in conformity with U.S. GAAP requires management tomake estimates and assumptions that affect the reported amounts of assets and liabilities, thedisclosure of contingent assets and liabilities at the date of the financial statements, and thereported amounts of revenues and expenses. Actual results could differ from those estimates.

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12 Months EndedEmployee Benefit Plans(Details 2) (USD $) Dec. 31, 2012

bond Dec. 31, 2011 Dec. 31,2010

Sep. 30,2012

Defined Benefit Plan, Amounts Recognized in BalanceSheet [Abstract]Noncurrent liabilities $

(385,062,000)$(343,842,000)

Global Weighted-AverageDefined Benefit Plan, Weighted Average AssumptionsUsed in Calculating Net Periodic Benefit Cost[Abstract]Discount rates 4.70% 5.40% 5.80%Expected long-term rates of return on plan assets 6.90% 7.50% 7.50%Rates of compensation increase 3.40% 3.30% 3.60%Expected long-term rates of return on plan assets for nextyear (as a percent) 6.80%

Defined Benefit Plan, Weighted Average AssumptionsUsed in Calculating Benefit Obligation [Abstract]Discount rates 4.20% 4.70%Rates of compensation increase 2.80% 3.40%U.S. PlansDefined Benefit Plan, Change in Benefit Obligation[Roll Forward]Benefit obligation at beginning of year 298,769,000 264,969,000Service cost 1,887,000 1,557,000Interest cost 12,780,000 13,468,000Plan participants' contributions 0 0Amendments 0 0Actuarial loss 27,803,000 40,730,000Settlements/curtailments (3,029,000) 0Benefits paid (21,762,000) (21,955,000)Effect of foreign currency 0 0Other 0 0Benefit obligation at end of year 316,448,000 298,769,000 264,969,000Defined Benefit Plan, Change in Fair Value of PlanAssets [Roll Forward]Fair value of plan assets at beginning of year 209,237,000 221,673,000Actual return on plan assets 27,429,000 6,464,000Employer contributions 6,254,000 3,055,000Plan participants' contributions 0 0Settlements/curtailments (3,074,000) 0Benefits paid (21,762,000) (21,955,000)Effect of foreign currency 0 0Other 0 0

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Fair value of plan assets at end of year 218,084,000 209,237,000 221,673,000Funded status at end of year (98,364,000) (89,532,000)Defined Benefit Plan, Amounts Recognized in BalanceSheet [Abstract]Noncurrent assets 490,000 397,000Current liabilities (2,531,000) (2,076,000)Noncurrent liabilities (96,323,000) (87,853,000)Total accumulated other comprehensive loss before tax 159,094,000 149,429,000Pension and Other Postretirement Benefit Plans,Accumulated Other Comprehensive Income (Loss),before Tax [Abstract]Net actuarial loss 158,579,000 148,690,000Prior service cost 515,000 739,000Transition obligation 0 0Total accumulated other comprehensive loss before tax 159,094,000 149,429,000Pension and Other Postretirement Benefit Plans,Amounts that Will be Amortized from AccumulatedOther Comprehensive Income (Loss) in Next FiscalYear [Abstract]Net actuarial loss 5,052,000Prior service cost 143,000Total 5,195,000Estimate of expected contributions in next fiscal year 2,800,000Defined Benefit Plan, Expected Future BenefitPayments, Fiscal Year Maturity [Abstract]2013 19,700,0002014 18,700,0002015 18,500,0002016 18,800,0002017 18,500,0002018-2022 92,700,000Defined Benefit Plan, Weighted Average AssumptionsUsed in Calculating Net Periodic Benefit Cost[Abstract]Discount rates 4.40% 5.30% 5.90%Expected long-term rates of return on plan assets 7.80% 7.80% 8.00%Rates of compensation increase 3.00% 3.00% 3.00%Expected long-term rates of return on plan assets for nextyear (as a percent) 7.50%

Defined Benefit Plan, Weighted Average AssumptionsUsed in Calculating Benefit Obligation [Abstract]Discount rates 3.80% 4.40%Rates of compensation increase 3.00% 3.00%Number of U.S. dollar-denomincated, AA-graded corporatebonds in yield curve universe 650

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Highest yield U.S. dollar-denominated, AA-gradedcorporate bonds excluded from yield curve univers (as apercent)

10.00%

Lowest yield U.S. dollar-denominated, AA-gradedcorporate bonds excluded from yield curve universe (as apercent)

10.00%

International PlansDefined Benefit Plan, Change in Benefit Obligation[Roll Forward]Benefit obligation at beginning of year 968,218,000 883,342,000Service cost 3,418,000 4,350,000Interest cost 46,174,000 48,768,000Plan participants' contributions 830,000 986,000Amendments 60,000 598,000Actuarial loss 65,379,000 79,474,000Settlements/curtailments (9,506,000) (1,886,000)Benefits paid (44,968,000) (37,653,000)Effect of foreign currency 39,181,000 (10,332,000)Other (36,000) 571,000Benefit obligation at end of year 1,068,750,000968,218,000 883,342,000Defined Benefit Plan, Change in Fair Value of PlanAssets [Roll Forward]Fair value of plan assets at beginning of year 714,163,000 708,025,000Actual return on plan assets 58,194,000 19,488,000Employer contributions 29,713,000 29,300,000Plan participants' contributions 830,000 986,000Settlements/curtailments (3,885,000) (1,127,000)Benefits paid (44,968,000) (37,653,000)Benefits paid (43,954,000) (36,631,000)Effect of foreign currency 27,998,000 (6,449,000)Other 0 571,000Fair value of plan assets at end of year 783,059,000 714,163,000 708,025,000Funded status at end of year (285,691,000) (254,055,000)Defined Benefit Plan, Amounts Recognized in BalanceSheet [Abstract]Noncurrent assets 5,892,000 4,372,000Current liabilities (1,048,000) (1,011,000)Noncurrent liabilities (290,535,000) (257,416,000)Total accumulated other comprehensive loss before tax 469,949,000 417,406,000Pension and Other Postretirement Benefit Plans,Accumulated Other Comprehensive Income (Loss),before Tax [Abstract]Net actuarial loss 467,438,000 414,203,000Prior service cost 2,511,000 3,105,000Transition obligation 0 98,000

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Total accumulated other comprehensive loss before tax 469,949,000 417,406,000Pension and Other Postretirement Benefit Plans,Amounts that Will be Amortized from AccumulatedOther Comprehensive Income (Loss) in Next FiscalYear [Abstract]Net actuarial loss 17,180,000Prior service cost 367,000Total 17,547,000Estimate of expected contributions in next fiscal year 31,300,000Defined Benefit Plan, Expected Future BenefitPayments, Fiscal Year Maturity [Abstract]2013 46,100,0002014 47,600,0002015 49,500,0002016 51,600,0002017 54,100,0002018-2022 $ 296,100,000Defined Benefit Plan, Weighted Average AssumptionsUsed in Calculating Net Periodic Benefit Cost[Abstract]Discount rates 4.80% 5.50% 5.70%Expected long-term rates of return on plan assets 6.70% 7.40% 7.40%Rates of compensation increase 3.40% 3.30% 3.60%Expected long-term rates of return on plan assets for nextyear (as a percent) 6.60%

Defined Benefit Plan, Weighted Average AssumptionsUsed in Calculating Benefit Obligation [Abstract]Discount rates 4.30% 4.80%Rates of compensation increase 2.80% 3.40%

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1 MonthsEnded 12 Months EndedOther Expenses (Details)

(USD $) Jun. 30, 2011entities

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

Other (income) expensesNet gains $

(5,848,000)$(6,162,000)

$(7,792,000)

Contingent consideration adjustments 0 (3,966,000) (10,620,000)Employee termination benefit costs 31,158,000 36,174,000 24,816,000Costs to exit activities 38,626,000 10,007,000 34,384,000Currency translation adjustments recognized in earnings 10,900,000Product line rationalization 24,966,000 66,063,000 34,302,000Impaired asset write-downs 7,152,000 0 9,966,000Other (income) expense, miscellaneous (2,278,000) 624,000 1,417,000Other (income) expenses 93,776,000 102,740,00086,473,000Withdrawal liability to exit certain multi-employerpension plans 8,300,000

Harsco Metals & Minerals SegmentOther (income) expensesNet gains (2,449,000) (1,666,000) (3,942,000)Employee termination benefit costs 8,082,000 18,533,000 4,684,000Costs to exit activities 3,627,000 1,313,000 930,000Impaired asset write-downs 7,152,000 0 1,028,000Harsco Infrastructure SegmentOther (income) expensesNet gains (2,198,000) (3,607,000) (3,253,000)Employee termination benefit costs 17,291,000 16,546,000 19,068,000Costs to exit activities 34,820,000 8,694,000 33,458,000Impaired asset write-downs 0 0 8,938,000Assets held-for-sale, number of lines of business sold (inentities) 2

Harsco Industrial SegmentOther (income) expensesNet gains (1,089,000) (889,000) (597,000)Employee termination benefit costs 418,000 423,000 486,000Costs to exit activities 0 0 (4,000)Harsco Rail SegmentOther (income) expensesEmployee termination benefit costs 245,000 296,000 578,000CorporateOther (income) expensesNet gains (112,000) 0 0Employee termination benefit costs 5,122,000 376,000 0Costs to exit activities $ 179,000 $ 0 $ 0

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12 MonthsEnded

Stock-Based Compensation(Stock Options - Range ofExercise Prices) (Details)

(USD $)In Millions, except Share

data, unless otherwisespecified

Dec. 31, 2012Dec.31,

2011

Dec. 31,2010

Dec. 31,2009

Share-based Compensation, Shares Authorized under StockOption Plans, Exercise Price Range [Line Items]Options Outstanding, Vested 24,000Options Outstanding, Unvested (in shares) 304,000Weighted Average Exercise Price Per Share (in dollars per share) $ 30.67Weighted Average Remaining Contractual Life In Years 4 years 8

months 19days

Options Exercisable, Number Exercisable 24,000Weighted Average Exercise Price Per Share (in dollars per share) $ 16.96Aggregate intrinsic value of outstanding options (in dollars) $ 0.2 [1] $ 0.2 [1] $ 3.3 [1] $ 6.7 [1]

Weighted-average remaining contractual life of vested and currentlyexercisable options (in years)

3 months 29days

Aggregate intrinsic value of vested and currently exercisable options(in dollars) $ 0.2

Shares Under OptionOutstanding at the beginning of the period (in shares) 589,000Forfeited (in shares) (285,000)Outstanding at the end of the period (in shares) 304,000Weighted Average Grant-Date Fair ValueOutstanding at the beginning of the period (in dollars per share) $ 10.90Forfeited (in dollars per share) $ 10.90Outstanding at the end of the period (in dollars per share) $ 10.90Range of Exercisable Prices $16.96 - $16.96Share-based Compensation, Shares Authorized under StockOption Plans, Exercise Price Range [Line Items]Range of Exercisable Prices, low end of range (in dollars per share) $ 16.96Range of Exercisable Prices, high end of range (in dollars per share) $ 16.96Options Outstanding, Vested 24,000Options Outstanding, Unvested (in shares) 0Weighted Average Exercise Price Per Share (in dollars per share) $ 16.96Weighted Average Remaining Contractual Life In Years 3 months 29

daysOptions Exercisable, Number Exercisable 24,000Weighted Average Exercise Price Per Share (in dollars per share) $ 16.96Range of Exercisable Prices $31.75 - $31.75

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Share-based Compensation, Shares Authorized under StockOption Plans, Exercise Price Range [Line Items]Range of Exercisable Prices, low end of range (in dollars per share) $ 31.75Range of Exercisable Prices, high end of range (in dollars per share) $ 31.75Options Outstanding, Vested 0Options Outstanding, Unvested (in shares) 304,000Weighted Average Exercise Price Per Share (in dollars per share) $ 31.75Weighted Average Remaining Contractual Life In Years 5 years 0

months 26days

Options Exercisable, Number Exercisable 0Weighted Average Exercise Price Per Share (in dollars per share) $ 0.00[1] Intrinsic value is defined as the difference between the current market value and the exercise price, for those

options where the market price exceeds the exercise price.

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12 Months EndedRestructuring Programs Dec. 31, 2012Restructuring and RelatedActivities [Abstract]Restructuring Programs Restructuring Programs

The Company instituted restructuring programs in 2010 and 2011 as detailed below. The overallobjective of the programs was to balance short-term profitability goals with long-term strategiesto establish platforms upon which the affected businesses could grow with reduced fixedinvestment while generating annual operating expense savings. The programs were instituted inresponse to the continuing impact of global financial and economic uncertainty on the Company’send markets, particularly in the Company’s Harsco Infrastructure Segment.

Within the Harsco Infrastructure Segment, these restructuring programs are part of an ongoingstrategy to improve organizational efficiency and enhance profitability and stockholder value.The strategy includes optimizing the Segment as a more streamlined, efficient, cost-effective,disciplined and market-focused global platform.

Restructuring costs incurred in these programs were recorded in the Other expenses line of theConsolidated Statements of Operations.

2011/2012 Restructuring ProgramUnder the 2011/2012 Restructuring Program, the Company optimized rental assets and saleinventories by removing non-core assets under an expanded product rationalization and branchstructure reduction program undertaken in its Harsco Infrastructure Segment; and reduced theglobal workforce in the Harsco Infrastructure and Harsco Metals & Minerals Segments. As

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previously disclosed in the Company’s Annual Report on Form 10-K for the Year EndedDecember 31, 2011, the Company incurred approximately $101 million in pre-tax charges underthis program in 2011. Benefits under this program, in the form of reduced costs, were $55 millionin 2012 and are expected to be more than $63 million when fully annualized in 2013. Certainbenefits under this program were accelerated and resulted in greater than initially anticipated costsavings in 2012.

The restructuring accrual for the 2011/2012 Restructuring Program at December 31, 2012 and theactivity for the year then ended are as follows:

(In thousands)

AccrualDecember 31

2011

AdditionalExpenses

Incurred (a)

Non-CashCharges /

AdjustmentsCash

Payments

ForeignCurrency

Translation

RemainingAccrual

December31

2012

HarscoInfrastructureSegment

Employeeterminationbenefit costs $ 14,500 $ 17,495 $ (326) $(25,265) $ 595 $ 6,999Cost to exitactivities 2,833 45,927 215 (39,997) 22 9,000

Total HarscoInfrastructureSegment (b) 17,333 63,422 (111) (65,262) 617 15,999

Harsco Metals & Minerals SegmentEmployeeterminationbenefit costs 12,737 4,974 — (11,017) (200) 6,494Cost to exitactivities — 499 — — — 499Total HarscoMetals &MineralsSegment 12,737 5,473 — (11,017) (200) 6,993

Harsco RailSegment

Employeeterminationbenefit costs 50 67 — (117) — —

Harsco CorporateEmployeeterminationbenefit costs 351 371 — (709) — 13

Total $ 30,471 $ 69,333 $ (111) $(77,105) $ 417 $ 23,005(a) Includes principally the recognition of additional expenses due to timing considerations under U.S. GAAP, as

well as adjustments to previously recorded restructuring charges resulting from changes in facts andcircumstances in the implementation of these activities.

(b) The table does not include $25.0 million of non-cash product rationalization expense or $17.7 million ofproceeds from asset sales under the 2011/2012 Restructuring Program for this Segment as these items did notimpact the restructuring accrual during 2012.

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Cash payments related to the remaining accrual at December 31, 2012 are expected to be paidprincipally throughout 2013 with approximately $7 million of exit activity costs for leaseterminations expected to be paid over the remaining life of the leases.

Fourth Quarter 2010 Harsco Infrastructure ProgramUnder the Fourth Quarter 2010 Harsco Infrastructure Program, the Harsco Infrastructure Segmentreduced its branch structure; consolidated and/or closed administrative office locations; reducedits global workforce; and rationalized its product lines.

The restructuring accrual for the Fourth Quarter 2010 Harsco Infrastructure Program atDecember 31, 2012 and the activity for the year then ended are as follows:

(In thousands)

AccrualDecember 31

2011

Adjustmentsto Previously

RecordedRestructuring

Charges (a)Cash

Payments

ForeignCurrency

Translation

RemainingAccrual

December 312012

Harsco InfrastructureSegment

Cost to exit activities $ 11,929 $ (805) $ (4,178) $ (155) $ 6,791Employee terminationbenefit costs 211 (208) — (3) —Other 7 (5) — (2) —

Total $ 12,147 $ (1,018) $ (4,178) $ (160) $ 6,791(a) Adjustments to previously recorded restructuring charges resulted from changes in facts and circumstances in

the implementation of these activities.

Approximately $6 million of the December 31, 2012 balance relates to payment of multiemployerpension plan withdrawal liabilities and is expected to be paid through 2023 under contractualpayment terms with the related plan administrators. The remaining balance primarily relates tocosts for lease terminations that are expected to be paid over the remaining life of the leases.

Prior Restructuring ProgramsOther restructuring actions were undertaken in 2010, in addition to the Fourth Quarter 2010Harsco Infrastructure Program described above, to reduce the Company’s cost structure.

The restructuring accrual for those prior restructuring programs at December 31, 2012 and theactivity for the year then ended are as follows:

(In thousands)

AccrualDecember 31

2011

Adjustmentsto Previously

RecordedRestructuring

Charges (a)Cash

Payments

ForeignCurrency

Translation

RemainingAccrual

December 312012

Harsco Metals &Minerals Segment

Employee terminationbenefit costs $ 1,280 $ (1,263) $ (43) $ 26 $ —Cost to exit activities 727 — (124) (13) 590

Total $ 2,007 $ (1,263) $ (167) $ 13 $ 590

(a) Adjustments to previously recorded restructuring charges resulted from changes in facts and circumstances inthe implementation of these activities.

Cash payments related to the remaining accrual at December 31, 2012 are expected to be paid in2013.

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12 Months EndedFinancial Instruments(Details 3) (USD $)

In Thousands, unlessotherwise specified

Dec. 31,2012

Dec. 31,2011

Dec. 31,2010

Derivative Instruments, Gain (Loss) [Line Items]Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) onDerivative - Effective Portion

$(4,900)

$8,117

$(1,067)

Amount of Gain (Loss) Reclassified from Accumulated OCI into Income -Effective Portion 270 83 20

Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portionand Amount Excluded from Effectiveness Testing (13,384) 7,642 21,744

Foreign currency forward exchange contractsDerivative Instruments, Gain (Loss) [Line Items]Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) onDerivative - Effective Portion (152) 887 32

Amount of Gain (Loss) Reclassified from Accumulated OCI into Income -Effective Portion 83 0

Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portionand Amount Excluded from Effectiveness Testing 0 0 0

Foreign currency forward exchange contracts | Cost of services and products soldDerivative Instruments, Gain (Loss) [Line Items]Amount of Gain (Loss) Reclassified from Accumulated OCI into Income -Effective Portion 270

Derivative Instruments Not Designated as Hedging Instruments, Gain(Loss), Net [Abstract]Amount of Gain (Loss) Recognized in Income on Derivative for the TwelveMonths Ended December 31 (3,529) [1] 7,238 [1] 1,483 [1]

Commodity contractsDerivative Instruments, Gain (Loss) [Line Items]Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) onDerivative - Effective Portion 20

Commodity contracts | Cost of services and products soldDerivative Instruments, Gain (Loss) [Line Items]Amount of Gain (Loss) Reclassified from Accumulated OCI into Income -Effective Portion 20

Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portionand Amount Excluded from Effectiveness Testing 10

Cross currency interest rate swapsDerivative Instruments, Gain (Loss) [Line Items]Amount of Gain (Loss) Recognized in Other Comprehensive Income (OCI) onDerivative - Effective Portion (4,748) 7,230 (1,119)

Amount of Gain (Loss) Reclassified from Accumulated OCI into Income -Effective Portion 0 0 0

Cross currency interest rate swaps | Cost of services and products soldDerivative Instruments, Gain (Loss) [Line Items]

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Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portionand Amount Excluded from Effectiveness Testing

$(13,384)

[2] $7,642

[2] $21,734

[2]

[1] These gains (losses) offset amounts recognized in cost of service and products sold principally as a result ofintercompany or third-party foreign currency exposures.

[2] These gains (losses) offset foreign currency fluctuation effects on the debt principal.

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12 Months EndedIncome Taxes (Tables) Dec. 31, 2012Income Tax Disclosure[Abstract]Schedule of Income beforeIncome Tax, Domestic andForeign

Income (loss) from continuing operations before income taxes and equity income as reported inthe Consolidated Statements of Operations consists of the following:

(In thousands) 2012 2011 2010

United States $ 40,411 $ 47,680 $ 23,037International (258,906) (6,015) (2,561)

Total income (loss) before income taxes and equityincome $ (218,495) $ 41,665 $ 20,476

Schedule of Components ofIncome Tax Expense (Benefit)

Income tax expense as reported in the Consolidated Statements of Operations consists of thefollowing:

(In thousands) 2012 2011 2010

Income tax expense (benefit):Currently payable:

U.S. federal $ 22,603 $ 4,249 $ (325)U.S. state 1,561 913 453International 21,795 23,860 30,765

Total income taxes currently payable 45,959 29,022 30,893Deferred U.S. federal (3,831) 670 6,228Deferred U.S. state (843) 503 (56)Deferred international (6,034) 19,653 (32,789)

Total income tax expense $ 35,251 $ 49,848 $ 4,276

Schedule of Effective IncomeTax Rate Reconciliation

The following is a reconciliation of the normal expected statutory U.S. federal income tax rate tothe effective income tax rate as a percentage of Income (loss) from continuing operations beforeincome taxes and noncontrolling interest as reported in the Consolidated Statements ofOperations:

2012 2011 2010

U.S. federal income tax rate 35.0 % 35.0 % 35.0 %U.S. state income taxes, net of federal income taxbenefit (0.1) 2.9 5.1U.S. domestic manufacturing deductions andcredits 1.7 (9.6) (5.9)Change in permanent reinvestment assertion — — 9.3Difference in effective tax rates on internationalearnings and remittances (0.7) (11.7) (34.4)Uncertain tax position contingencies andsettlements 2.5 (18.0) 1.2Changes in realization on beginning of the yeardeferred tax assets (1.8) 89.1 8.4Restructuring charges with no realizable taxbenefits (9.8) 23.0 11.2U.S. nondeductible items (0.7) 6.0 8.7Deferred charges — — (19.0)

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Non-deductible goodwill impairment (42.5) — —Cumulative effect of change in statutory tax rates/laws 0.1 3.5 3.4Other, net 0.2 (0.6) (2.1)

Effective income tax rate (16.1)% 119.6 % 20.9 %

Schedule of Deferred TaxAssets and Liabilities

The tax effects of the temporary differences giving rise to the Company's deferred tax assets andliabilities at December 31, 2012 and 2011 are as follows:

2012 2011

(In thousands) Asset Liability Asset Liability

Depreciation and amortization $ — $ 99,219 $ — $ 120,590Expense accruals 38,595 — 43,418 —Inventories 2,649 — 2,588 —Provision for receivables 1,677 — 2,205 —Deferred revenue — 2,014 — 2,065Operating loss carryforwards 99,475 — 79,408 —Foreign tax credit carryforwards 24,223 — 29,540 —Pensions 104,413 — 95,657 —Currency adjustments 26,661 — 30,813 —Post-retirement benefits 1,160 — 1,079 —Other 25,324 — 19,299 —Subtotal 324,177 101,233 304,007 122,655Valuation allowance (126,532) — (99,617) —

Total deferred income taxes $ 197,645 $ 101,233 $ 204,390 $ 122,655

Schedule of Recognition ofDeferred Tax Assets andLiabilities

The deferred tax asset and liability balances recognized on the Consolidated Balance Sheets atDecember 31, 2012 and 2011 are as follows:

(In thousands) 2012 2011

Other current assets $ 45,672 $ 50,694Other assets 70,271 59,200Other current liabilities (651) (729)Deferred income taxes (18,880) (27,430)

Summary of Income TaxContingencies

A reconciliation of the change in the UTB balance from January 1, 2010 to December 31, 2012 isas follows:

(In thousands)

UnrecognizedIncome Tax

Benefits

DeferredIncome Tax

Benefits

UnrecognizedIncome TaxBenefits, Net

ofDeferredIncome

Tax Benefits

Balances, January 1, 2010 $ 36,791 $ (949) $ 35,842Additions for tax positions related to the current year(includes currency translation adjustment) 1,846 — 1,846Additions for tax positions related to prior years(includes currency translation adjustment) 313 (44) 269Other reductions for tax positions related to prioryears (429) — (429)Statutes of limitation expirations (2,348) 156 (2,192)

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Settlements (284) 99 (185)Balance at December 31, 2010 $ 35,889 $ (738) $ 35,151Additions for tax positions related to the current year(includes currency translation adjustment) 2,534 (10) 2,524Additions for tax positions related to prior years(includes currency translation adjustment) 4,014 (11) 4,003Other reductions for tax positions related to prioryears (147) — (147)Statutes of limitation expirations (8,521) 224 (8,297)Settlements (361) 18 (343)Balance at December 31, 2011 $ 33,408 $ (517) $ 32,891Additions for tax positions related to the current year(includes currency translation adjustment) 584 (8) 576Additions for tax positions related to prior years(includes currency translation adjustment) 37 2 39Other reductions for tax positions related to prioryears (3,987) — (3,987)Statutes of limitation expirations (5,124) 154 (4,970)Settlements — — —Total unrecognized income tax benefits that, ifrecognized, would impact the effective income taxrate at December 31, 2012 $ 24,918 $ (369) $ 24,549

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12 Months EndedCommitments andContingencies Dec. 31, 2012

Commitments andContingencies Disclosure[Abstract]Commitments andContingencies

Commitments and Contingencies

EnvironmentalThe Company is involved in a number of environmental remediation investigations and cleanupsand, along with other companies, has been identified as a "potentially responsible party" forcertain waste disposal sites. While each of these matters is subject to various uncertainties, it isprobable that the Company will agree to make payments toward funding certain of these activitiesand it is possible that some of these matters will be decided unfavorably to the Company. TheCompany has evaluated its potential liability, and its financial exposure is dependent upon suchfactors as the continuing evolution of environmental laws and regulatory requirements, theavailability and application of technology, the allocation of cost among potentially responsibleparties, the years of remedial activity required and the remediation methods selected. TheConsolidated Balance Sheets at December 31, 2012 and 2011 include accruals in Other currentliabilities of $1.9 million and $2.5 million, respectively, for environmental matters. The amountscharged against pre-tax income related to environmental matters totaled $1.2 million, $2.0 millionand $2.6 million in 2012, 2011 and 2010, respectively.

The Company evaluates its liability for future environmental remediation costs on a quarterlybasis. Although actual costs to be incurred at identified sites in future periods may vary from theestimates (given inherent uncertainties in evaluating environmental exposures), the Companydoes not expect that any costs that are reasonably possible to be incurred by the Company inconnection with environmental matters in excess of the amounts accrued would have a materialadverse effect on the Company's financial condition, results of operations or cash flows.

Brazilian Tax DisputesThe Company is involved in a number of tax disputes with federal, state and municipal taxauthorities in Brazil. These disputes are at various stages of the legal process, including theadministrative review phase and the collection action phase, and include assessments of fixedamounts of principal and penalties, plus interest charges that increase at statutorily determinedamounts per month and are assessed on the aggregate amount of the principal and penalties. Inaddition, the losing party at the collection action or court of appeals phase could be subject to acharge to cover statutorily mandated legal fees, which are generally calculated as a percentage ofthe total assessed amounts due, inclusive of penalty and interest. A large number of the claimsrelate to value-added ("ICMS"), services and social security ("INSS") tax disputes. The largestproportion of the assessed amounts relate to ICMS claims filed by the State Revenue Authoritiesfrom the State of São Paulo, Brazil (the "SPRA"), encompassing the period from January 2002 toMay 2005.

In October 2009, the Company received notification of the SPRA's final administrative decisionregarding the levying of ICMS in the State of São Paulo in relation to services provided to acustomer in the State between January 2004 and May 2005. As of December 31, 2012, theprincipal amount of the tax assessment from the SPRA with regard to this case is approximately$3 million, with penalty, interest and fees assessed to date increasing such amount by anadditional $29 million. Any increase in the aggregate amount since the Company's last QuarterlyReport on Form 10-Q is due to an increase in assessed interest and statutorily mandated legal feesfor the quarter. All such amounts include the effect of foreign currency translation.

Another ICMS tax case involving the SPRA refers to the tax period from January 2002 toDecember 2003, and is still pending at the administrative phase, where the aggregate amountassessed by the tax authorities in August 2005 was $12 million (the amounts with regard to thisclaim are valued as of the date of the assessment since it has not yet reached the collection phase),

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composed of a principal amount of approximately $3 million, with penalty and interest assessedthrough that date increasing such amount by an additional $9 million. All such amounts includethe effect of foreign currency translation.

The Company continues to believe that it is not probable it will incur a loss for these assessmentsby the SPRA and continues to believe that sufficient coverage for these claims exists as a result ofthe Company's customer's indemnification obligations and such customer's pledge of assets inconnection with the October 2009 notice, as required by Brazilian procedure.

The Company intends to continue its practice of vigorously defending itself against these taxclaims under various alternatives, including judicial appeal. The Company will continue toevaluate its potential liability with regard to these claims on a quarterly basis; however, it is notpossible to predict the ultimate outcome of these tax-related disputes in Brazil. No loss provisionhas been recorded in the Company's consolidated financial statements because the losscontingency is not deemed probable, and the Company does not expect that any costs that arereasonably possible to be incurred by the Company in connection with Brazilian tax disputeswould have a material adverse effect on the Company's financial condition, results of operationsor cash flows.

Customer DisputesThe Company, through its Harsco Metals & Minerals Segment, provides services to varioussubsidiaries and affiliates of ArcelorMittal ("ArcelorMittal") on a number of sites worldwidethrough long-term service contracts. Currently, ArcelorMittal and the Company are involved inseveral commercial disputes, a few of which have resulted in legal action. Both the Company andArcelorMittal are working to resolve these matters. Although results of operations and cash flowsfor 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 nothave a material adverse effect on the Company's financial condition, results of operations or cashflows.

OtherIn the United States, the Company has been named as one of many defendants (approximately 90or more in most cases) in legal actions alleging personal injury from exposure to airborneasbestos 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 orproducts that allegedly contained asbestos.

The Company believes that the claims against it are without merit. The Company has never beena producer, manufacturer or processor of asbestos fibers. Any component within a Companyproduct that may have contained asbestos would have been purchased from a supplier. Based onscientific and medical evidence, the Company believes that any asbestos exposure arising fromnormal use of any Company product never presented any harmful levels of airborne asbestosexposure, and, moreover, the type of asbestos contained in any component that was used in thoseproducts was protectively encapsulated in other materials and is not associated with the types ofinjuries alleged in the pending suits. Finally, in most of the depositions taken of plaintiffs to datein the litigation against the Company, plaintiffs have failed to specifically identify any Companyproducts as the source of their asbestos exposure.

The majority of the asbestos complaints pending against the Company have been filed in NewYork. Almost all of the New York complaints contain a standard claim for damages of $20million or $25 million against the approximately 90 defendants, regardless of the individual

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plaintiff's alleged medical condition, and without specifically identifying any Company productas the source of plaintiff's asbestos exposure.

At December 31, 2012, there are 18,302 pending asbestos personal injury claims filed against theCompany. Of these cases, 17,813 are pending in the New York Supreme Court for New YorkCounty in New York State. The other claims, totaling 489, are filed in various counties in anumber of state courts, and in certain Federal District Courts (including New York), and thosecomplaints generally assert lesser amounts of damages than the New York State court cases or donot state any amount claimed.

As of December 31, 2012, the Company has obtained dismissal by stipulation, or summaryjudgment prior to trial, in 26,480 cases.

In view of the persistence of asbestos litigation nationwide, the Company expects to continue toreceive additional claims. However, there have been developments during the past several years,both by certain state legislatures and by certain state courts, which could favorably affect theCompany's ability to defend these asbestos claims in those jurisdictions. These developmentsinclude procedural changes, docketing changes, proof of damage requirements and other changesthat require plaintiffs to follow specific procedures in bringing their claims and to show proof ofdamages before they can proceed with their claim. An example is the action taken by the NewYork Supreme Court (a trial court), which is responsible for managing all asbestos cases pendingwithin New York County in the State of New York. This Court issued an order in December 2002that created a Deferred or Inactive Docket for all pending and future asbestos claims filed byplaintiffs who cannot demonstrate that they have a malignant condition or discernible physicalimpairment, and an Active or In Extremis Docket for plaintiffs who are able to show suchmedical condition. As a result of this order, the majority of the asbestos cases filed against theCompany in New York County have been moved to the Inactive Docket until such time as theplaintiffs can show that they have incurred a physical impairment. At December 31, 2012, theCompany has been listed as a defendant in 651 Active or In Extremis asbestos cases in New YorkCounty. The Court's Order has been challenged by some plaintiffs.

Except with regard to the legal costs in a few limited, exceptional cases, the Company's insurancecarrier has paid all legal and settlement costs and expenses to date related to the Company's U.S.asbestos cases. The Company has liability insurance coverage under various primary and excesspolicies that the Company believes will be available, if necessary, to substantially cover anyliability that might ultimately be incurred on these claims.

The Company intends to continue its practice of vigorously defending these claims and cases. Itis not possible to predict the ultimate outcome of asbestos-related lawsuits, claims andproceedings due to the unpredictable nature of personal injury litigation, and no loss provisionhas been recorded in the Company's consolidated financial statements because a loss contingencyis not deemed probable or estimable. Despite this uncertainty, and although results of operationsand cash flows for a given period could be adversely affected by asbestos-related lawsuits, claimsand proceedings, the Company does not expect that any costs that are reasonably possible to beincurred by the Company in connection with asbestos litigation would have a material adverseeffect 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 ofmatters that arose in the ordinary course of business. In the opinion of management, all such

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matters are adequately covered by insurance or by established reserves, and, if not so covered, arewithout merit or are of such kind, or involve such amounts, as would not have a material adverseeffect 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 aparticular 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 theundiscounted 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 andlosses, a detailed analysis of existing claims with respect to potential value, and current legal andlegislative trends. If actual claims differ from those projected by management, changes (eitherincreases or decreases) to insurance reserves may be required and would be recorded throughincome 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 coveredliability. Insurance claim receivables are included in Other receivables on the Company'sConsolidated Balance Sheets. See Note 1, Summary of Significant Accounting Policies, to theconsolidated financial statements for the year ended December 31, 2012 for additionalinformation on Accrued Insurance and Loss Reserves.

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