Restructuring Programs

12 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

Restructuring Programs

Restructuring Programs

In recent years, the Company has instituted restructuring programs to balance short-term profitability goals with long-term strategies. A primary objective of these programs has been to establish platforms upon which the affected businesses can grow with reduced fixed investment and generate annual operating expense savings.  The restructuring programs have been instituted in response to the continuing impact of global financial and economic uncertainty on the Company’s end markets. Restructuring costs incurred in these programs were recorded in the caption, Other expenses, of the Consolidated Statements of Operations. The timing of associated cash payments is dependent on the type of restructuring cost and can extend over a multi-year period.

Project Orion

Under Project Orion, the Harsco Metals & Minerals Segment made organizational and process improvement changes, which are expected to improve return on capital and deliver a higher and more consistent level of service to customers. These changes include improving several core processes and simplifying the organizational structure. Annual recurring benefits under Project Orion were approximately $36 million at the end of 2015. During the fourth quarter of 2015, Project Orion was expanded with additional targeted workforce and operational savings of $20 million to $25 million; the majority of these benefits are expected to be realized in 2016. The Company incurred $5.1 million in severance and related charges associated with the expansion of Project Orion during the fourth quarter of 2015.

The restructuring accrual for Project Orion at December 31, 2015 and 2014 and the activity for the years ended December 31, 2015 and 2014 were as follows:

(In thousands)	Employee Termination Benefit Costs
Balance January 1, 2014	$	—
Expense incurred	11,992
Other adjustments	1,190
Cash expenditures	(5,331		)
Foreign currency translation	(183		)
Balance, December 31, 2014	$	7,668
Expense incurred	5,070
Other adjustments	(1,003		)
Cash expenditures	(5,854		)
Foreign currency translation	(74		)
Balance, December 31, 2015	$	5,807

The remaining accrual related to Project Orion is expected to be paid through the first half of 2016.

Prior Restructuring Programs

The remaining accrual for restructuring programs was $2.0 million and $2.4 million at December 31, 2015 and 2014, respectively. The remaining accrual relates primarily to exit activity costs for lease terminations expected to be paid over the remaining life of the leases.