Other Expenses

During 2016, 2015 and 2014, the Company recorded pre-tax other expenses from continuing operations of $12.6 million, $30.6 million and $57.8 million, respectively. The major components of this Consolidated Statements of Operations caption are as follows:



(In thousands)	2016			2015			2014
Net gains	$	(1,764	)	$	(10,613	)	$	(6,718	)
Employee termination benefit costs	10,777			14,914			19,120
Other costs to exit activities	440			13,451			4,908
Impaired asset write-downs	399			8,170			39,455
Foreign currency gains related to Harsco Rail Segment advances on contracts	—			(10,940		)	—
Harsco Metals & Minerals Segment separation costs	3,235			9,922			—
Subcontractor settlement	—			4,220			—
Other expense	(467		)	1,449			1,059
Total	$	12,620		$	30,573		$	57,824

Net Gains

Net gains result from the sales of redundant properties (primarily land, buildings and related equipment) and non-core assets. In 2016, gains related to assets sold principally in Western Europe, North America and Latin America. In 2015, gains related to assets sold principally in North America and Latin America. In 2014, gains related to assets sold primarily in North America and Latin America.



	Net Gains
(In thousands)	2016			2015			2014
Harsco Metals & Minerals Segment	$	(1,828	)	$	(7,059	)	$	(3,538	)
Harsco Industrial Segment	64			(3,554		)	(2,077		)
Corporate	—			—			(1,103		)
Total	$	(1,764	)	$	(10,613	)	$	(6,718	)

Cash proceeds associated with these gains are included in Proceeds from sales of assets, in the cash flows from investing activities section of the Consolidated Statements of Cash Flows.

Employee Termination Benefit Costs

Costs and the related liabilities associated with involuntary termination benefit costs associated with one-time benefit arrangements provided as part of an exit or disposal activity are recognized by the Company when a formal plan for reorganization is approved at the appropriate level of management and communicated to the affected employees. Additionally, costs associated with ongoing benefit arrangements, or in certain countries where statutory requirements dictate a minimum required benefit, are recognized when they are probable and estimable.

The employee termination benefits costs in 2016 related principally to the Harsco Metals & Minerals Segment, including a probable site exit and the impact of Harsco Metals & Minerals Segment's Improvement Plan ("Project Orion"), primarily in Western Europe, Latin America and North America. The employee termination benefits costs in 2015 related principally to the Harsco Metals & Minerals Segment, including the impact of Project Orion, primarily in Western Europe, North America and Asia Pacific. Additionally, employee termination benefits costs were incurred at Corporate. The employee termination benefits costs in 2014 related primarily to the Harsco Metals & Minerals Segment, including the impact of Project Orion, primarily in Latin America and Western Europe.



	Employee Termination Benefit Costs
(In thousands)	2016		2015		2014
Harsco Metals & Minerals Segment	$	8,491	$	11,454	$	18,169
Harsco Industrial Segment	947		561		421
Harsco Rail Segment	297		145		185
Corporate	1,042		2,754		345
Total	$	10,777	$	14,914	$	19,120

Other Costs to Exit Activities

Costs 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 an entity ceases using the right conveyed by the contract. This includes the costs to terminate the contract before the end of its term or the costs that will continue to be incurred under the contract for its remaining term without economic benefit to the entity (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 or employees) are recognized and measured at their fair value in the period in which the liability is incurred.

In 2016, $0.4 million of exit costs were incurred, principally in North America and Western Europe.

In 2015, $13.5 million of exit costs were incurred, principally in the Harsco Metals & Minerals Segment, primarily related to the Middle East, North America, Latin America and Western Europe.

Other costs to exit activities during 2015 include costs associated with the Company's exit of operations in Bahrain. Over the past several years the Company has been in discussions with officials at the Supreme Council for Environment in Bahrain with regard to a processing by-product ("salt cakes") located at Hafeera. During 2015, the Company completed the assessment of options available for processing or removing the salt cakes. As a result, the Company has entered into a service agreement with a third party for processing the salt cakes and recorded a charge of $7.0 million, payable over five to seven years, related to the estimated cost of processing and disposal. The Company's Bahrain operations are operated under a strategic venture for which its strategic venture partner has a 35% minority interest. Accordingly, the net impact of the charge to the Company's net income (loss) attributable to the Company was $4.6 million.

In 2014, $4.9 million of exit costs were incurred, principally in the Harsco Metals & Minerals Segment, primarily related to North America and Western Europe, partially offset at Corporate by gains from currency translation adjustments recognized in earnings related to historic Harsco Infrastructure Segment entities which were not included as part of the Infrastructure Transaction and retained by the Company. The currency translation adjustments are non-cash items recognized when the Company has substantially liquidated the related investment in a foreign entity.



	Costs to Exit Activities
(In thousands)	2016		2015		2014
Harsco Metals & Minerals Segment	$	220	$	12,638	$	6,395
Harsco Industrial Segment	40		—		—
Corporate	180		813		(1,487		)
Total	$	440	$	13,451	$	4,908

Impaired Asset Write-downs

Impaired asset write-downs are measured as the amount by which the carrying amount of assets exceeds their fair value. Fair value is estimated 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 cash provided by operating activities.

In 2016, $0.4 million, of impaired asset write-downs were incurred principally in the Harsco Metals & Minerals Segment, mostly in the Asia Pacific region. In 2015, $8.2 million of impaired asset write-downs were incurred in the Harsco Metals & Minerals Segment, mostly in North America, Middle East and Africa and the Asia Pacific region. In 2014, $39.5 million of impaired asset write-downs were incurred, principally in the Harsco Metals & Minerals Segment and mostly in Western Europe, the Middle East and Africa and the Asia Pacific region as part of Project Orion.



	Impaired Asset Write-downs
(In thousands)	2016		2015		2014
Harsco Metals & Minerals Segment	$	399	$	8,170	$	38,791
Harsco Industrial Segment	—		—		74
Harsco Rail Segment	—		—		590
Total	$	399	$	8,170	$	39,455

Foreign Currency Gains Related to Harsco Rail Segment Advances on Contracts

In January 2015, the Swiss National Bank ended its policy of maintaining a stable exchange rate between the Swiss franc and the euro. As a result of this change in policy, the Swiss franc experienced significant appreciation against the euro. During 2015, the Company recognized $10.9 million in foreign currency gains primarily related to converting Swiss franc bank deposits to euros. This gain was associated with advances received for the Harsco Rail Segment's two contracts with the SBB.

Harsco Metals & Minerals Segment Separation Costs

The Company has announced its intention to pursue strategic options for the separation of the Harsco Metals & Minerals Segment from the rest of the Company. In 2016 and 2015, the Company incurred $3.2 million and $9.9 million of expenses related to the strategic review of this initiative, respectively.

Subcontractor Settlement

A subcontractor at the site of a large customer in the Harsco Metals & Minerals Segment had filed arbitration against the Company, claiming that it was owed monetary damages from the Company in connection with its processing certain materials. Additionally, related to this matter, the Company has brought suit against its customer which the Company believed had responsibility for any damages. During 2015, all parties involved reached a binding settlement agreement. The Company recorded a charge of $4.2 million related to its obligations under the settlement agreement.