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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2010	Dec. 31, 2009
Current assets:
Cash and cash equivalents	$ 124,238	$ 94,184
Trade accounts receivable, net	585,301	598,318
Other receivables	29,299	30,865
Inventories	271,617	291,174
Other current assets	144,491	154,797
Total current assets	1,154,946	1,169,338
Property, plant and equipment, net	1,366,973	1,510,801
Goodwill	690,787	699,041
Intangible assets, net	120,959	150,746
Other assets	135,555	109,314
Total assets	3,469,220	3,639,240
Current liabilities:
Short-term borrowings	31,197	57,380
Current maturities of long-term debt	4,011	25,813
Accounts payable	261,509	215,504
Accrued compensation	83,928	67,652
Income taxes payable	9,718	5,931
Dividends payable	16,505	16,473
Insurance liabilities	25,844	25,533
Advances on contracts	128,794	149,413
Other current liabilities	206,358	187,403
Total current liabilities	767,864	751,102
Long-term debt	849,724	901,734
Deferred income taxes	35,642	90,993
Insurance liabilities	62,202	61,660
Retirement plan liabilities	223,777	250,075
Other liabilities	61,866	73,842
Total liabilities	$ 2,001,075	$ 2,129,406
COMMITMENTS AND CONTINGENCIES
HARSCO CORPORATION STOCKHOLDERS' EQUITY
Preferred stock, Series A junior participating cumulative preferred stock
Common stock, par value $1.25, issued 111,611,102 and 111,387,185 shares at December 31, 2010 and 2009, respectively	139,514	139,234
Additional paid-in capital	141,298	137,746
Accumulated other comprehensive loss	(185,932)	(201,684)
Retained earnings	2,073,920	2,133,297
Treasury stock, at cost (31,097,043 and 31,034,126 shares at December 31, 2010 and 2009, respectively)	(737,106)	(735,016)
Total Harsco Corporation stockholders' equity	1,431,694	1,473,577
Noncontrolling interests	36,451	36,257
Total equity	1,468,145	1,509,834
Harsco Corporation stockholders' equity:
Total liabilities and equity	$ 3,469,220	$ 3,639,240

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 1.25	$ 1.25
Common stock, issued shares	111,611,102	111,387,185
Treasury stock, shares	31,097,043	31,034,126

CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Thousands, $ in Thousands

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Revenues from continuing operations:

Service revenues

$ 2,511,505

$ 2,442,198

$ 3,340,456

Product revenues

527,173

548,379

627,366

Total revenues

3,038,678

2,990,577

3,967,822

Costs and expenses from continuing operations:

Cost of services sold

1,994,637

1,897,408

2,484,975

Cost of products sold

342,242

354,730

441,445

Selling, general and administrative expenses

532,624

509,071

602,169

Research and development expenses

4,271

3,151

5,295

Other expenses

86,473

7,561

21,950

Total costs and expenses

2,960,247

2,771,921

3,555,834

Operating income from continuing operations

78,431

218,656

411,988

Interest income

2,668

2,928

3,608

Interest expense

(60,623)

(62,746)

(73,160)

Income from continuing operations before income taxes and equity income

20,476

158,838

342,436

Income tax expense

(4,276)

(18,509)

(91,820)

Equity in income of unconsolidated entities, net

390

504

901

Income from continuing operations

16,590

140,833

251,517

Discontinued operations:

Loss on disposal of discontinued business

(7,249)

(21,907)

(1,747)

Income tax benefit (expense) related to discontinued business

3,118

6,846

(2,931)

Loss from discontinued operations

(4,131)

(15,061)

(4,678)

Net income

12,459

125,772

246,839

Less: Net income attributable to noncontrolling interests

(5,705)

(6,995)

(5,894)

Net income attributable to Harsco Corporation common stockholders

6,754

118,777

240,945

Amounts attributable to Harsco Corporation common stockholders:

Income from continuing operations, net of tax

10,885

133,838

245,623

Loss from discontinued operations, net of tax

(4,131)

(15,061)

(4,678)

Net income attributable to Harsco Corporation common stockholders

$ 6,754

$ 118,777

$ 240,945

Weighted-average shares of common stock outstanding (in shares)

80,569

80,295

83,599

Basic earnings (loss) per share attributable to Harsco Corporation common stockholders:

Continuing operations (in dollars per share)

$ 0.14

$ 1.67

$ 2.94

Discontinued operations (in dollars per share)

(0.05)

(0.19)

(0.06)

Basic earnings per share attributable to Harsco Corporation common stockholders (in dollars per share)

$ 0.08

^[1]

$ 1.48

$ 2.88

Diluted weighted-average shares of common stock outstanding (in shares)

80,761

80,586

84,029

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

Continuing operations (in dollars per share)

$ 0.13

$ 1.66

$ 2.92

Discontinued operations (in dollars per share)

(0.05)

(0.19)

(0.06)

Diluted earnings per share attributable to Harsco Corporation common stockholders (in dollars per share)

$ 0.08

$ 1.47

$ 2.87

^[1]

[1]	Does not total due to rounding.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash flows from operating activities:
Net income	$ 12,459	$ 125,772	$ 246,839
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation	279,234	282,976	307,847
Amortization	36,005	28,555	30,102
Equity in income of unconsolidated entities, net	(390)	(504)	(901)
Dividends or distributions from unconsolidated entities	176	410	484
Loss on disposal of discontinued business	7,249	21,907	1,747
Harsco Infrastructure Segment restructuring plan	72,975
Other, net	(20,629)	(15,762)	61,244
Changes in assets and liabilities, net of acquisitions and dispositions of businesses:
Accounts receivable	4,395	111,207	34,198
Inventories	12,599	35,798	(24,238)
Accounts payable	36,529	(54,701)	(22,144)
Accrued interest payable	(2,615)	(1,305)	3,841
Accrued compensation	16,305	(23,402)	(15,843)
Income taxes	(18,480)	(36,692)	(76,346)
Advances on contracts	(20,822)	4,242	92,580
Other assets and liabilities	(13,563)	(44,043)	(65,134)
Net cash provided by operating activities	401,427	434,458	574,276
Cash flows from investing activities:
Purchases of property, plant and equipment	(192,348)	(165,320)	(457,617)
Purchase of businesses, net of cash acquired	(27,643)	(103,241)	(15,539)
Proceeds from sales of assets	22,663	2,115	24,516
Other investing activities	(4,695)	(2,914)	5,222
Net cash used by investing activities	(202,023)	(269,360)	(443,418)
Cash flows from financing activities:
Short-term borrowings, net	(25,706)	(79,670)	65,239
Current maturities and long-term debt:
Additions	747,213	482,493	975,393
Reductions	(821,038)	(487,171)	(996,173)
Cash dividends paid on common stock	(65,976)	(63,813)	(65,632)
Dividends paid to noncontrolling interests	(5,850)	(3,487)	(5,595)
Purchase of noncontrolling interests	(1,159)	(13,057)
Contributions of equity from noncontrolling interest	698	5,332
Common stock issued-options	997	995	1,831
Common stock acquired for treasury			(128,577)
Other financing activities	(700)	(5,705)	(2,025)
Net cash used by financing activities	(171,521)	(164,083)	(155,539)
Effect of exchange rate changes on cash	2,171	1,833	(5,816)
Net increase (decrease) in cash and cash equivalents	30,054	2,848	(30,497)
Cash and cash equivalents at beginning of period	94,184	91,336	121,833
Cash and cash equivalents at end of period	$ 124,238	$ 94,184	$ 91,336

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Purchase of businesses, net of cash acquired
Working capital, other than cash	$ (1,918)	$ (2,399)	$ (263)
Property, plant and equipment	(15,600)	(68,906)	(11,961)
Other noncurrent assets and liabilities, net	(10,125)	(31,936)	(3,315)
Net cash used to acquire businesses	$ (27,643)	$ (103,241)	$ (15,539)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Increase (Decrease) in Stockholders' Equity
Balances	$ 1,509,834	$ 1,449,972	$ 1,605,061
Net income	12,459	125,772	246,839
Cash dividends declared:
Common @ $0.82, $0.805 and $0.78 per share for the year 2010, 2009 and 2008 respectively	(66,131)	(64,650)	(64,824)
Noncontrolling interests	(5,850)	(3,487)	(5,595)
Translation adjustments, net of deferred income taxes of $7,612, $(21,866) and $85,526 for the year 2010, 2009 and 2008 respectively	(6,633)	97,064	(156,598)
Cash flow hedging instrument adjustments, net of deferred income taxes of $347, $10,849 and $(7,655) for the year 2010, 2009 and 2008 respectively	(700)	(30,041)	20,812
Purchase of subsidiary shares from noncontrolling interests	(1,159)	(13,046)
Contributions of equity from noncontrolling interest	698	5,332
Pension liability adjustments, net of deferred income taxes of $(9,727), $26,012 and $29,057 for the year 2010, 2009 and 2008 respectively	22,872	(60,150)	(74,340)
Marketable securities unrealized gains (loss), net of deferred income taxes of $(7), $(2) and $38 for the year 2010, 2009 and 2008 respectively	10	4	(70)
Stock options exercised, 115,493, 92,250 and 121,176 shares for the year 2010, 2009 and 2008 respectively	754	1,058	3,488
Net issuance of stock - vesting of restricted stock units, 69,515, 101,918 and 56,847 shares for the year 2010, 2009 and 2008 respectively	(1,306)	(1,880)	(1,457)
Treasury shares repurchased, 4,463,353 shares			(128,577)
Amortization of unearned compensation on restricted stock units, net of forfeitures	3,297	3,886	5,233
Balances	1,468,145	1,509,834	1,449,972
Common Stock Issued
Increase (Decrease) in Stockholders' Equity
Balances	139,234	138,925	138,665
Cash dividends declared:
Stock options exercised, 115,493, 92,250 and 121,176 shares for the year 2010, 2009 and 2008 respectively	144	115	152
Net issuance of stock - vesting of restricted stock units, 69,515, 101,918 and 56,847 shares for the year 2010, 2009 and 2008 respectively	136	194	108
Balances	139,514	139,234	138,925
Common Stock Treasury
Increase (Decrease) in Stockholders' Equity
Balances	(735,016)	(733,203)	(603,169)
Cash dividends declared:
Stock options exercised, 115,493, 92,250 and 121,176 shares for the year 2010, 2009 and 2008 respectively	(836)	(423)
Net issuance of stock - vesting of restricted stock units, 69,515, 101,918 and 56,847 shares for the year 2010, 2009 and 2008 respectively	(1,254)	(1,390)	(1,457)
Treasury shares repurchased, 4,463,353 shares			(128,577)
Balances	(737,106)	(735,016)	(733,203)
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Balances	137,746	137,083	128,622
Cash dividends declared:
Purchase of subsidiary shares from noncontrolling interests	(1,003)	(3,905)
Stock options exercised, 115,493, 92,250 and 121,176 shares for the year 2010, 2009 and 2008 respectively	1,446	1,366	3,336
Net issuance of stock - vesting of restricted stock units, 69,515, 101,918 and 56,847 shares for the year 2010, 2009 and 2008 respectively	(188)	(684)	(108)
Amortization of unearned compensation on restricted stock units, net of forfeitures	3,297	3,886	5,233
Balances	141,298	137,746	137,083
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Balances	2,133,297	2,079,170	1,903,049
Net income	6,754	118,777	240,945
Cash dividends declared:
Common @ $0.82, $0.805 and $0.78 per share for the year 2010, 2009 and 2008 respectively	(66,131)	(64,650)	(64,824)
Balances	2,073,920	2,133,297	2,079,170
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity
Balances	(201,684)	(208,299)	(129)
Cash dividends declared:
Translation adjustments, net of deferred income taxes of $7,612, $(21,866) and $85,526 for the year 2010, 2009 and 2008 respectively	(6,430)	96,802	(154,572)
Cash flow hedging instrument adjustments, net of deferred income taxes of $347, $10,849 and $(7,655) for the year 2010, 2009 and 2008 respectively	(700)	(30,041)	20,812
Pension liability adjustments, net of deferred income taxes of $(9,727), $26,012 and $29,057 for the year 2010, 2009 and 2008 respectively	22,872	(60,150)	(74,340)
Marketable securities unrealized gains (loss), net of deferred income taxes of $(7), $(2) and $38 for the year 2010, 2009 and 2008 respectively	10	4	(70)
Balances	(185,932)	(201,684)	(208,299)
Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity
Balances	36,257	36,296	38,023
Net income	5,705	6,995	5,894
Cash dividends declared:
Noncontrolling interests	(5,850)	(3,487)	(5,595)
Translation adjustments, net of deferred income taxes of $7,612, $(21,866) and $85,526 for the year 2010, 2009 and 2008 respectively	(203)	262	(2,026)
Purchase of subsidiary shares from noncontrolling interests	(156)	(9,141)
Contributions of equity from noncontrolling interest	698	5,332
Balances	$ 36,451	$ 36,257	$ 36,296

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Cash dividends declared, Common, per share (in dollars per share)	$ 0.82	$ 0.805	$ 0.78
Translation adjustments, deferred income taxes	$ 7,612	$ (21,866)	$ 85,526
Cash flow hedging instrument adjustments, deferred income taxes	347	10,849	(7,655)
Pension liability adjustments, deferred income taxes	(9,727)	26,012	29,057
Marketable securities unrealized gains (loss), deferred income taxes	$ (7)	$ (2)	$ 38
Stock options exercised (in shares)	115,493	92,250	121,176
Net issuance of stock - vesting of restricted stock units (in shares)	69,515	101,918	56,847
Treasury shares repurchased (in shares)			4,463,353

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statement
Net income	$ 12,459	$ 125,772	$ 246,839
Other comprehensive income (loss):
Foreign currency translation adjustments, net of deferred income taxes	(6,633)	97,064	(156,598)
Net gains (losses) on cash flow hedging instruments, net of deferred income taxes of $355, $10,490 and $(7,681) in 2010, 2009 and 2008, respectively	(712)	(29,375)	20,859
Reclassification adjustment for (gain) loss on cash flow hedging instruments, net of deferred income taxes of $(8), $359 and $26 in 2010, 2009 and 2008, respectively	12	(666)	(47)
Pension liability adjustments, net of deferred income taxes of $(9,727), $26,012 and $29,057 in 2010, 2009 and 2008, respectively	22,872	(60,150)	(74,340)
Unrealized gain (loss) on marketable securities, net of deferred income taxes of $(8), $(2) and $38 in 2010, 2009 and 2008, respectively	12	4	(70)
Reclassification adjustment for gain on marketable securities, net of deferred income taxes of $1 in 2010	(2)
Total other comprehensive income (loss)	15,549	6,877	(210,196)
Total comprehensive income	28,008	132,649	36,643
Less: Comprehensive income attributable to noncontrolling interests	(5,502)	(7,257)	(3,868)
Comprehensive income attributable to Harsco Corporation	$ 22,506	$ 125,392	$ 32,775

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net gains (losses) on cash flow hedging instruments, deferred income taxes	$ 355	$ 10,490	$ (7,681)
Reclassification adjustment for (gain) loss on cash flow hedging instruments, deferred income taxes	(8)	359	26
Pension liability adjustments, deferred income taxes	(9,727)	26,012	29,057
Unrealized gain (loss) on marketable securities, deferred income taxes	(8)	$ (2)	$ 38
Reclassification adjustment for gain on marketable securities, deferred income taxes	$ 1

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

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 variable interest entities required to be consolidated in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). Intercompany accounts and transactions have been eliminated among consolidated entities.

The Company's management has evaluated all activity of the Company and concluded that subsequent events are properly reflected in the Company's financial statements and notes as required by standards for accounting and disclosure of subsequent events.

Reclassifications and Out-of-Period Adjustments

Certain reclassifications have been made to prior years' amounts to conform with current year classifications. These reclassifications relate principally to segment reporting. The Harsco Minerals businesses, which were previously a component of an "All Other" Category, are now reported with the Harsco Metals Segment to form the Harsco Metals & Minerals Segment. This reflects the increasing operating synergies of these businesses within the Company's global markets as well as the combined management of these businesses. The remaining businesses of the "All Other" Category are now being reported as the Harsco Industrial operating segment, which also reflects the combined management of these businesses. The "All Other" Category is no longer utilized. Segment information for prior periods has been reclassified to conform with the current presentation.

During 2009, the Company recorded non-cash, out-of-period adjustments that had the net effect of reducing after-tax income by $4 million or $0.05 per diluted share. The adjustments correct errors generated principally by the improper recognition of certain revenues and delaying the recognition of certain expenses ($9 million or $0.11 per diluted share) by one subsidiary, in one country, from 2007 through 2009. Based upon the investigation, which is complete, these errors primarily related to the failure to receive advance customer agreement and to invoice on a timely basis for additional work performed for two customers. The Company assessed the individual and aggregate impact of these adjustments on the year 2009 and all prior periods and determined that the cumulative effect of the adjustments was not material to the full-year 2009 results and did not re sult in a material misstatement to any previously issued annual or quarterly financial statements. Consequently, the Company recorded the $4 million net adjustment in 2009 and has not revised any previously issued annual financial statements or interim financial data. The Company has also concluded that a 2010 tax adjustment (refer to Note 9) did not materially affect any previously issued annual financial statements or interim financial data.

Cash and Cash Equivalents

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

Inventories

Inventories 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.

Depreciation

Property, plant and equipment is recorded at cost and depreciated over the estimated useful lives of the assets using principally the straight-line method. When property is retired from service, the cost of the retirement is charged to the allowance for depreciation to the extent of the accumulated depreciation and the balance is charged to income. Long-lived assets to be disposed of by sale are not depreciated while they are held for sale.

Leases

The Company leases certain property and equipment under noncancelable lease agreements. All lease agreements are evaluated and classified 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 equal to or greater than 75% of the asset's economic life; or the present value of future minimum lease payments is equal to or greater than 90% of the asset's fair market value. Operating lease expense is recognized ratably over the entire lease term, including rent abatement periods and rent holidays.

Goodwill and Other Intangible Assets

Goodwill is not amortized; instead, it is tested for impairment annually or more frequently if indicators of impairment exist or if a decision is made to sell a business. The valuation date for annual impairment testing is October 1. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include a decline in expected cash flows, a significant adverse change in legal factors or in the business climate, unanticipated competition, or slower growth rates, among others. It is important to note that fair values that could be realized in an actual transaction may differ from those used to evaluate the impairment of goodwill.

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. The Company has eight reporting units (only five of which have goodwill associated with them), of which three are included in the Harsco Metals & Minerals Segment. The remaining two reporting units with associated goodwill are the Harsco Infrastructure Segment and the Harsco Rail Segment. Approximately 83% of the total goodwill is allocated to two reporting units as follows: the Harsco Infrastructure Segment ($263.2 million) and the Harsco Metals business ($308.9 million) which is included in the Harsco Metals & Minerals Segment.

The evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. The Company uses a discounted cash flow model ("DCF model") to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows are the best indicator of such fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including future sales growth, operating margin growth, benefits from restructuring initiatives, tax rates, capital spending, pension funding, business initiatives, and working capital changes. These assumptions may vary significantly among the reporting units. Cash flow forecasts are generally based on approved business-unit operating plans for the early years and historical re lationships and projections in later years. The weighted average cost of capital ("WACC") rate is estimated for each business. The basis for the WACC rate is derived from several internal and external factors including but not limited to the average market price of the Company's stock, the number of shares outstanding, the book value of the Company's debt, a long-term risk-free interest rate, and both market and size-specific risk premiums. The Company has not materially changed its methodology for goodwill impairment testing for the years presented. Due to the many variables inherent in the estimation of a reporting unit's fair value and the relative size of the company's recorded goodwill, differences in assumptions may have a material effect on the results of the Company's impairment analysis.

The performance of the Company's 2010 annual impairment tests did not result in any impairment of the Company's goodwill. For the Harsco Infrastructure Segment, the fair value exceeded the carrying value by approximately 4%. The discount rates utilized in the 2010 analysis ranged from 9.68% to 10.75%. Had the fair values of each of the Company's reporting units been hypothetically lower by 5% at October 1, 2010 the Harsco Infrastructure Segment net book value would have exceeded fair value by approximately $16.3 million. Had the fair values of each of the Company's reporting units been hypothetically lower by 10% at October 1, 2010 the Harsco Infrastructure Segment net book value would have exceeded fair value by approximately $82.4 million. Additionally, had the WACC of each of the Company's reporting units been hypothetically increased by 50 basis points at October 1, 2010, the Harsco Infrastructure Segment net book value would have exceeded fair value by approximately $32.5 million. The fair value of all other reporting units would still exceed their book value. If the net book value of a reporting unit were to exceed the fair value, the second step of the goodwill impairment test would be required to be performed to determine the ultimate amount of impairment loss to record. The additional analysis would compare the carrying amount of the reporting unit's goodwill with the implied fair value of that goodwill, which would involve the use of valuation experts. The implied fair value of goodwill is the excess of the fair value of the reporting unit over the fair value amounts assigned to all of the assets and liabilities of that unit as if the reporting unit was acquired in a business combination and the fair value of the reporting unit represented the purchase price.

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 be recoverable. The Company's policy is to record an impairment loss when it is determined that the carrying amount of the asset 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 determined in either open market transactions or through the use of a discounted cash flow model. Long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell.

Revenue Recognition

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

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 over the contractual rental period. Services provided on a fixed-fee basis are recognized over the contractual period based upon the completion of specific units of accounting (i.e., erection and dismantling of equipment). Services provided on a time-and-materials basis are recognized when earned as services are performed. Product sales revenue is recognized when title and risk of loss transfer, and when all of the revenue recognition criteria have been met.

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 as variable fees based upon specific services provided to the customer. The fixed-fee portion is recognized 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 upon the actual provision of services. This Segment also sells 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 the custome r at the point of shipment. For export sales, title and risk of loss transfer in accordance with the international commercial terms included in the specific customer contract.

Harsco Rail Segment—This Segment sells railway track maintenance equipment and provides railway track maintenance services. Product sales revenue is 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 the customer at the point of shipment. For export sales, title and risk of loss transfer in accordance with the international commercial terms included in the specific customer contract. Revenue may be recognized subsequent to the transfer of title and risk of loss for certain product sales, if the specific sales contract includes a customer acceptance clause that provides for different timing. In those situations revenue is recognized after transfer of title and risk of loss and after customer acceptance. Services are predominantly on a long-term, time-and-materials contract basis. Revenue is recognized when earned as services are performed within the long-term contracts.

Harsco Industrial Segment—This Segment sells industrial grating products, heat exchangers, and heat transfer products. Product revenues 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 of loss transfer in accordance with the international commercial terms included in the specific customer contract.

Income Taxes

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of the events 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 financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in 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 the Company believes 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 of existing deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial results. In the event the Company was to determine that it would be able to realize deferred income tax assets in the future in excess of their net recorded amount, an adjustment to the valuation allowance would be made that would reduce the provision for income taxes.

The tax benefit from an uncertain tax position is recognized when it is more-likely-than-not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on its technical merits. Each subsequent period the Company determines if existing or new uncertain tax positions meet a more-likely-than-not recognition threshold and adjust accordingly.

The Company recognizes interest and penalties related to unrecognized tax benefits within Income tax expense in the accompanying Consolidated Statements of Income. Accrued interest and penalties are included in Other liabilities in the Consolidated Balance Sheets.

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

Accrued Insurance and Loss Reserves

The Company retains a significant portion of the risk for U.S. workers' compensation, U.K. employers' liability, automobile, general and product liability losses. During 2010, 2009 and 2008, the Company recorded insurance expense from continuing operations related to these lines of coverage of approximately $38.5 million, $38.7 million and $43.1 million, respectively. Reserves have been recorded that reflect the undiscounted estimated liabilities including claims incurred but not reported. When a recognized liability is covered by third-party insurance, the Company records an insurance claim receivable to reflect the covered liability. Changes in the estimates of the reserves are included in net income in the period determined. During 2010, 2009 and 2008, the Company recorded retrospective insurance reserve adjustments that decreased pre-tax insur ance expense from continuing operations for self-insured programs by $2.5 million, $3.7 million and $1.8 million, respectively. At December 31, 2010 and 2009, the Company has recorded liabilities of $88.0 million and $87.2 million, respectively, related to both asserted as well as unasserted insurance claims. Included in the balance at December 31, 2010 and 2009 were $4.3 million and $6.9 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 in the Consolidated Balance Sheets.

Warranties

The Company has recorded product warranty reserves of $5.0 million, $4.1 million and $2.9 million at December 31, 2010, 2009 and 2008, respectively. The Company provides for warranties of certain products as they are sold. The following table summarizes the warranty activity for 2010, 2009 and 2008:

Warranty Activity (In thousands)	2010			2009			2008

Balance at the beginning of the period	$	4,078		$	2,863		$	2,907
Accruals for warranties issued during the period		4,399			4,623			3,683
Reductions related to pre-existing warranties		(1,447	)		(1,388	)		(1,524	)
Warranties paid		(2,054	)		(2,059	)		(2,157	)
Other (principally foreign currency translation)		61			39			(46	)

Balance at end of the period	$	5,037		$	4,078		$	2,863

Foreign Currency Translation

The financial statements of the Company's subsidiaries outside the United States, except for those subsidiaries located in highly inflationary economies and those entities for which the U.S. dollar is the currency of the primary economic environment in which the entity operates, are measured using the local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the exchange rates at the balance sheet date. Resulting translation adjustments are recorded in the cumulative translation adjustment account, a separate component of Other comprehensive income (loss). Income and expense items are translated at average monthly exchange rates. Gains and losses from foreign currency transactions are included in net income. For subsidiaries operating in highly inflationary economies, and those entities for which the U.S. dollar is the currenc y of the primary economic environment in which the entity operates, gains and losses on foreign currency transactions and balance sheet translation adjustments are included in net income.

Financial Instruments and Hedging

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

The Company executes foreign currency forward exchange contracts to hedge transactions for firm purchase commitments, to hedge variable cash flows of forecasted transactions and for export 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 are designated as qualified cash 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 currency interest rates. Under these cross-currency interest rate swaps, the Company receives interest based on a fixed U.S. dollar rate and pays interest on a fixed local currency rate based on the contractual amounts in dollars and the local currency, respectively.

Amounts recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheets are reclassified into income in the same period or periods during which the hedged forecasted transaction affects income. The cash flows from these contracts are classified consistent with the cash flows from the transaction being hedged (e.g., the cash flows related to contracts to hedge the purchase of fixed assets are included in cash flows from investing activities, etc.). The Company also enters into certain forward exchange contracts that are not designated as hedges. Gains and losses on these contracts are recognized in income based on 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 the hedged firm commitment are recognized currently in income.

Earnings Per Share

Basic earnings per share are calculated using the weighted-average shares of common stock outstanding, while diluted earnings per share reflect the dilutive effects of restricted stock units and the potential dilution that could occur if stock options were exercised. All share and per share amounts are restated for any stock splits and stock dividends that occur prior to the issuance of the financial statements. See Note 11, "Capital Stock," for additional information on earnings per share.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses. Actual results could differ from those estimates.

Recently Adopted and Recently Issued Accounting Standards

The following accounting standards were adopted in 2010:

On January 1, 2010, the Company adopted changes issued by the Financial Accounting Standards Board ("FASB") on accounting for variable interest entities ("VIE"). These changes require an enterprise to perform an analysis to determine whether the enterprise's variable interest or interests give it a controlling financial interest in a VIE; to require ongoing reassessments of whether an enterprise is the primary beneficiary of a VIE; to eliminate the solely quantitative approach previously required for determining the primary beneficiary of a VIE; to add an additional reconsideration event for determining whether an entity is a VIE when any changes in facts and circumstances occur such that holders of the equity investment at risk, as a group, lose the power from voting rights or similar rights of those investments to direct the activities of the entity that most sig nificantly impact the entity's economic performance; and to require enhanced disclosures that will provide users of financial statements with more transparent information about an enterprise's involvement in a VIE. The adoption of these changes had no impact on the Company's consolidated financial statements.

Effective January 1, 2010, the Company adopted changes to the FASB's previously-issued guidance on accounting for noncontrolling interests in consolidated financial statements. These changes were issued by the FASB on January 6, 2010 and clarify the accounting and reporting guidance for noncontrolling interests and changes in ownership interests of a consolidated subsidiary. An entity is required to deconsolidate a subsidiary when the entity ceases to have a controlling financial interest in the subsidiary. Upon deconsolidation of a subsidiary, an entity recognizes a gain or loss on the transaction and measures any retained investment in the subsidiary at fair value. The gain or loss includes any gain or loss associated with the difference between the fair value of the retained investment in the subsidiary and its carrying amount at the date the subsidiary is deconsolidated. In contrast, an entity is required to account for a decrease in its ownership interest of a subsidiary that does not result in a change of control of the subsidiary as an equity transaction. The adoption of these changes had no impact on the Company's consolidated financial statements.

Effective January 1, 2010, the Company adopted changes issued by the FASB on January 21, 2010 related to disclosure requirements for fair value measurements. The changes require a reporting entity to disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers. The changes also clarify existing disclosure requirements related to how assets and liabilities should be grouped by class and valuation techniques used for recurring and nonrecurring fair value measurements. The adoption of these changes had no impact on the Company's consolidated financial statements.

Effective January 1, 2010, the Company adopted changes issued by the FASB on February 24, 2010 to the accounting for and disclosure of events that occur after the balance sheet date, but before financial statements are issued or are available to be issued, generally referred to as "subsequent events." These changes clarified that an entity that is required to file or furnish its financial statements with the Securities and Exchange Commission is not required to disclose the date through which subsequent events have been evaluated. Other than the elimination of disclosing this date, the adoption of these changes had no impact on the Company's consolidated financial statements.

The following accounting standards have been issued and become effective for the Company at various future dates:

In October 2009, the FASB issued changes related to the accounting for revenue recognition when multiple-deliverable revenue arrangements are present. The changes eliminate the residual method of revenue allocation and require revenue to be allocated using the relative selling price method. This method requires a vendor to use its best estimate of selling price if neither vendor-specific objective evidence nor third-party evidence of selling price exists when evaluating multiple deliverable arrangements. These changes must be adopted no later than January 1, 2011 and may be adopted prospectively for revenue arrangements entered into or materially modified after the date of adoption or retrospectively for all revenue arrangements for all periods presented. Management has determined these changes will not have a material impact on the Company's consolidated financial statements.

In January 2010, the FASB issued changes to disclosure requirements for fair value measurements. The changes require a reporting entity to disclose, in the reconciliation of fair value measurements using significant unobservable inputs (Level 3), separate information about purchases, sales, issuances, and settlements (that is, on a gross basis rather than as one net number). These changes become effective for the Company beginning January 1, 2011. Other than the additional disclosure requirements, management has determined these changes will not have an impact on the Company's consolidated financial statements.

Acquisitions and Dispositions

12 Months Ended

Dec. 31, 2010

Acquisitions and Dispositions

Acquisitions and Dispositions

2. Acquisitions and Dispositions

Acquisitions

In September 2010, the Company acquired an increased ownership share of its United Arab Emirates consolidated subsidiary in the Harsco Infrastructure Segment for $0.2 million. The acquisition was accounted for as an equity transaction since the Company retained its controlling interest in the subsidiary.

In January 2010, the Company acquired Bell Scaffolding Group ("Bell"), an Australia-based infrastructure solutions provider serving the industrial, infrastructure and commercial construction sectors. Bell's capabilities range from technical design and support through supply and erect contracts. Historically, Bell generated annual revenues of approximately $40 million and has been included in the Harsco Infrastructure Segment.

In November 2009, the Company acquired ESCO Interamerica, Ltd. ("ESCO"), a Costa Rica-based provider of engineering and equipment services to the infrastructure sector in seven countries within Central and South America and the Caribbean. Historically, ESCO generated annual revenues of approximately $50 million and has been included in the Harsco Infrastructure Segment.

In October 2009, the Company acquired Nicol UK Ltd., a United Kingdom-based multi-disciplined provider of industrial maintenance services, multi-craft site services and scaffolding to major petrochemical, energy and industrial clients. This business historically generated annual revenues of approximately $25 million and has been included in the Harsco Infrastructure Segment.

In September 2009, the Company formed a partnership in Saudi Arabia that will provide highly-engineered scaffolding and formwork systems and expert installation services to the infrastructure and construction markets. The Company contributed $5.3 million to form this partnership, which has been included in the Harsco Infrastructure Segment. In September 2009, the partnership acquired the net assets of Saudi Express Transport LLC, which historically generated annual revenues of approximately $22 million.

In August 2009, the Company acquired the noncontrolling interests of four of its Eastern Europe region consolidated subsidiaries in the Harsco Infrastructure Segment for $0.6 million. The acquisition of these partnership interests was accounted for as an equity transaction since the Company retained its controlling interest in the subsidiaries.

In April 2009, the Company acquired the noncontrolling interests of three of its Asia-Pacific region consolidated subsidiaries in the Harsco Metals & Minerals Segment for $12.9 million. The acquisition of these partnership interests was accounted for as an equity transaction since the Company retained its controlling interest in the subsidiaries.

Inclusion of the pro-forma financial information for the above transactions is not necessary due to the immaterial size of the acquisitions, individually and in the aggregate.

Certain of the Company's acquisitions include contingent consideration features for which defined goals must be met by the acquired business in order for payment of the consideration. Each quarter until settlement of the contingency, the Company assesses the likelihood that an acquired business will achieve the goals and the resulting fair value of the contingency. The Company has consummated acquisitions whereby the purchase price included contingent consideration based on the performance of the business during 2010 and 2011. In 2010, the Company's assessment of these performance goals resulted in a $10.6 million reduction to the previously recognized contingent consideration liability. These reductions result from, among other things, difficult end-market conditions for the business, due to the global economic recession and market uncertainty. In accordance with accounting standards for acquisitions, this adjustment was recognized in operating income in the Consolidated Statements of Income as a component of the Other expenses line item. As the fair value is evaluated on a quarterly basis, any future adjustments (increases or decreases) will also be included in operating income. The recorded liability for contingent consideration at December 31, 2010 is $3.9 million.

Net Income Attributable to the Company and Transfers to Noncontrolling Interest

The purpose of the following schedule is to disclose the effects of changes in the Company's ownership interest in its subsidiaries on the Company's equity.

	For the Years Ended December 31

(In thousands)	2010			2009			2008
Net income attributable to the Company	$	6,754		$	118,777		$	240,945
Decrease in the Company's paid-in capital for purchase of partnership interests		(1,003	)		(3,905	)		—

Change from net income attributable to the Company and transfers to noncontrolling interest	$	5,751		$	114,872		$	240,945

Dispositions

Consistent 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 from discontinued operations of $4.1 million, $15.1 million, and $4.7 million in 2010, 2009, and 2008, respectively. The loss incurred in 2010 includes a charge related to potential and contingent claims. The charge in 2009 related to the settlement of working capital adjustment claims and other costs associated with arbitration proceedings. In 2008, the Company recorded a loss from discontinued operations of $4.7 million, comprised of $1.7 million of working capital adjustments and other costs associated with this disposition, coupled with the tax effect from the final p urchase price allocation. These events are more fully described in Note 10, "Commitments and Contingencies." The Consolidated Statements of Income for the years ended 2010, 2009 and 2008 reflect the Gas Technologies Segment's results in discontinued operations.

Dispositions—Assets Held-for-Sale

Throughout the past several years and in conjunction with the restructuring of the Harsco Infrastructure Segment, management approved the sale of certain long-lived assets throughout the Company's operations. The assets held-for-sale in the December 31, 2010 and 2009 Consolidated Balance Sheets as Other current assets were $24.8 million and $2.9 million, respectively. Assets held-for-sale at December 31, 2010 represent the estimated net realizable value of the assets of two lines of business in the Harsco Infrastructure Segment.

Accounts Receivable and Inventories

12 Months Ended

Dec. 31, 2010

Accounts Receivable and Inventories

Accounts Receivable and Inventories

3. Accounts Receivable and Inventories

At December 31, 2010 and 2009, Trade accounts receivable of $585.3 million and $598.3 million, respectively, were net of allowances for doubtful accounts of $20.3 million and $24.5 million, respectively. The provision for doubtful accounts was $10.0 million, $9.3 million and $12.5 million for 2010, 2009 and 2008, respectively. Other receivables of $29.3 million and $30.9 million at December 31, 2010 and 2009, respectively, include insurance claim receivables, employee receivables, tax claim receivables and other miscellaneous receivables not included in Trade accounts receivable, net.

Inventories consist of the following:

	Inventories

(In thousands)	2010		2009
Finished goods	$	124,771	$	146,104
Work-in-process		28,266		19,381
Raw materials and purchased parts		79,420		84,542
Stores and supplies		39,160		41,147

Total inventories	$	271,617	$	291,174

Valued at lower of cost or market:
LIFO basis	$	117,519	$	111,641
FIFO basis		14,148		13,877
Average cost basis		139,950		165,656

Total inventories	$	271,617	$	291,174

Inventories valued on the LIFO basis at December 31, 2010 and 2009 were approximately $26.3 million and $24.2 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 been recorded under the FIFO basis of valuation by $0.4 million in 2010, $1.7 million in 2009 and $0.3 million in 2008.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2010

Property, Plant and Equipment

Property, Plant and Equipment

4. Property, Plant and Equipment

Property, plant and equipment consists of the following:

(In thousands)	Estimated Useful Lives	2010			2009

Land	—	$	29,456		$	30,341
Land improvements	5–20 years		18,141			15,857
Buildings and improvements	5–40 years		196,777			207,280
Machinery and equipment	3–20 years		3,045,335			3,146,358
Uncompleted construction	—		74,873			50,252

Gross property, plant and equipment			3,364,582			3,450,088
Less accumulated depreciation			(1,997,609	)		(1,939,287	)

Net property, plant and equipment		$	1,366,973		$	1,510,801

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

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2010

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

5. Goodwill and Other Intangible Assets

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, 2010 and 2009:

Goodwill by Segment (In thousands)	Harsco Infrastructure Segment			Harsco Metals & Minerals Segment			Harsco Rail Segment		Consolidated Totals

Balance at December 31, 2008	$	220,547		$	402,571		$	8,372	$	631,490

Goodwill acquired during year(a)		29,601			—			—		29,601
Changes to Goodwill(b)		(68	)		1,617			607		2,156
Foreign currency translation		16,039			19,755			—		35,794

Balance at December 31, 2009		266,119			423,943			8,979		699,041

Goodwill acquired during year(c)		11,419			—			—		11,419
Changes to Goodwill(d)		(5,608	)		—			320		(5,288	)
Foreign currency translation		(8,718	)		(5,667	)		—		(14,385	)

Balance at December 31, 2010	$	263,212		$	418,276		$	9,299	$	690,787

(a): Relates principally to the ESCO acquisition, see Note 2, "Acquisitions and Dispositions".
(b): Relates principally to payment of contingent consideration on acquisitions made prior to 2009.
(c): Relates principally to the acquisition of Bell, see Note 2, "Acquisitions and Dispositions".
(d): Relates principally to opening balance sheet adjustments and allocation of goodwill to two lines of business in the Harsco Infrastructure Segment that were transferred to assets held-for-sale, see Note 2, "Acquisitions and Dispositions."

Goodwill is net of accumulated amortization of $96.4 million and $98.7 million at December 31, 2010 and 2009, respectively. The decrease in accumulated amortization from December 31, 2009 is primarily due to foreign currency translation.

Intangible assets totaled $121.0 million, net of accumulated amortization of $128.8 million at December 31, 2010 and $150.9 million, net of accumulated amortization of $95.8 million at December 31, 2009. The following table reflects these intangible assets by major category:

	December 31, 2010				December 31, 2009

Intangible Assets (In thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships	$	161,877	$	83,144	$	165,092	$	61,547
Non-compete agreements		1,386		1,317		1,440		1,346
Patents		6,976		4,868		7,043		4,597
Other		79,538		39,489		73,143		28,336

Total	$	249,777	$	128,818	$	246,718	$	95,826

The gross carrying value of intangible assets increased in 2010 due to acquisition of Bell, as discussed in Note 2, "Acquisitions and Dispositions." As part of this transaction, the Company acquired the following intangible assets (by major class) that are subject to amortization:

Acquired Intangible Assets (In thousands)	Gross Carrying Amount		Residual Value	Weighted-average amortization period

Customer relationships	$	211	None	7 years
Trade name		4,592	None	5 years

Total	$	4,803

There were no research and development assets acquired and written off in 2010, 2009 or 2008.

Amortization expense for intangible assets was $33.0 million, $26.4 million and $28.1 million for 2010, 2009 and 2008, respectively. The following table shows the estimated amortization expense for the next five fiscal years based on current intangible assets.

(In thousands)		2011			2012			2013			2014			2015

Estimated amortization expense(a)		$	30,931		$	17,302		$	15,426		$	13,381		$	8,218

(a): These estimated amortization expense amounts do not reflect the potential effect of future foreign currency exchange rate fluctuations.

Debt and Credit Agreements

12 Months Ended

Dec. 31, 2010

Debt and Credit Agreements

Debt and Credit Agreements

6. Debt and Credit Agreements

The Company has credit facilities and commercial paper programs available for use throughout the world. The following table illustrates the amounts outstanding on credit facilities and commercial paper programs, and available credit at December 31, 2010. These credit facilities and programs are described in more detail below the table.

Credit Facilities at December 31, 2010 (In thousands)	Facility Limit		Outstanding Balance		Available Credit

U.S. commercial paper program	$	550,000	$	—	$	550,000
Euro commercial paper program		267,400		26,718		240,682
Multi-year revolving credit facility(a)		570,000		—		570,000
Bilateral credit facility(b)		30,000		—		30,000

Totals at December 31, 2010	$	1,417,400	$	26,718	$	1,390,682	(c)

(a): U.S.-based program.
(b): International-based program.
(c): 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 $600.0 million (the aggregate amount of the back-up facilities).

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 Company has a 200 million euro commercial paper program, equivalent to approximately $267.4 million at December 31, 2010, which is used to fund the Company's international operations. At December 31, 2010, there were no borrowings outstanding under the U.S. commercial paper program. At December 31, 2009, the Company had $20.9 million outstanding under the U.S. commercial paper program. At December 31, 2010 and 2009, the Company had $26.7 million and $29.0 million outstanding, respectively, under its European-based commercial paper program. These borrowings are classified as long-term debt when the Company has the ability and intent to refinance them on a long-term basis through existing long-term credit facilities. At December 31, 2010 and 2009, the Company classified $26.7 million and $49.9 million, respectively, of commercial paper and advances as short-term debt. There were no remaining commercial paper or advances to be reclassified as long-term debt at December 31, 2010 or 2009.

During the fourth quarter of 2009, the Company entered into a multi-year revolving credit facility in the amount of $570 million through a syndicate of 21 banks, which matures in December 2012. This $570 million facility replaced a $220 million 364-day revolving credit facility, which expired in November 2009, and a $450 million credit facility the Company terminated in the fourth quarter of 2009. This $570 million facility serves as back-up to the Company's commercial paper programs. Interest rates on the facility are based upon either the announced Citibank Prime Rate, the Federal Funds Effective Rate plus a margin or LIBOR plus a margin. The Company pays a facility fee (currently 0.375% per annum) that varies based upon its credit ratings. At December 31, 2010 and 2009, there were no borrowings outstanding on the $570 million credit facility.

The Company's bilateral credit facility was amended in December 2010 to extend the maturity date to December 2011. The facility serves as back-up to the Company's commercial paper programs and also provides available financing for the Company's European operations. Borrowings under this facility are available in most major currencies with active markets at interest rates based upon LIBOR plus a margin. Borrowings outstanding at expiration may be repaid over the succeeding 12 months. At December 31, 2010 and 2009, there were no borrowings outstanding on this facility.

Short-term borrowings amounted to $31.2 million and $57.4 million at December 31, 2010 and 2009, respectively. This included commercial paper of $26.7 million and $49.9 million at December 31, 2010 and 2009, respectively. Other than the commercial paper borrowings, short-term debt was principally bank overdrafts. The weighted-average interest rate for short-term borrowings at December 31, 2010 and 2009 was 1.9% and 0.9%, respectively.

	Long-Term Debt

(In thousands)	2010			2009
5.75% notes due May 15, 2018	$	447,312		$	447,029
5.125% notes due September 15, 2013		149,544			149,392
2.70% notes due October 15, 2015		248,350			—
7.25% British pound sterling-denominated notes redeemed on October 27, 2010		—			322,700
Other financing payable in varying amounts due through 2016 with a weighted average interest rate of 7.9% and 8.0% at December 31, 2010 and 2009, respectively		8,529			8,426

		853,735			927,547
Less: current maturities		(4,011	)		(25,813	)

Total Long-term Debt	$	849,724		$	901,734

In September 2010, the Company completed a $250 million bond offering that bears interest at 2.7% and matures in October 2015. The net proceeds of this issuance were used to repay, in part, the 200 million British pound sterling-denominated notes that matured October 27, 2010. At that time, the Company issued additional commercial paper debt to repay the remainder of the British pound sterling-denominated notes in excess of the proceeds from the 2010 bond issuance.

The maturities of long-term debt for the four years following December 31, 2011 are as follows:

(In thousands)

2012			2,096
2013			150,538
2014			965
2015			248,724

Cash payments for interest on all debt were $59.9 million, $61.5 million and $71.6 million in 2010, 2009 and 2008, respectively.

The Company's credit facilities contain a covenant stipulating a maximum debt to capital ratio of 60%. One credit facility also contains a covenant requiring a minimum net worth of $475 million, and another limits the proportion of subsidiary consolidated indebtedness to a maximum of 10% of consolidated tangible assets. The Company's 5.75% notes and 2.7% notes include covenants that permit the note holders to redeem their notes at 101% of par in the event of a change of control of the Company or disposition of a significant portion of the Company's assets in combination with the Company's credit rating being downgraded to non-investment grade. At December 31, 2010, the Company was in compliance with these covenants.

Leases

12 Months Ended

Dec. 31, 2010

Leases

Leases

7. Leases

The Company leases certain property and equipment under noncancelable operating leases. Rental expense under such operating leases was $62.9 million, $64.3 million and $65.0 million in 2010, 2009 and 2008, respectively.

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

(In thousands)

2011			41,214
2012			31,010
2013			25,044
2014			18,745
2015			14,875
After 2015			24,037

Total minimum rentals to be received in the future under noncancelable subleases at December 31, 2010 are $6.4 million.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2010

Employee Benefit Plans

Employee Benefit Plans

8. Employee Benefit Plans

Pension Benefits

The Company has defined benefit pension retirement plans covering a substantial number of its employees. The defined benefits for salaried employees generally are based on years of service and the employee's level of compensation during specified periods of employment. Defined benefit plans covering hourly employees generally provide benefits of stated amounts for each year of service. The multi-employer plans in which the Company participates provide benefits to certain unionized employees. The Company's funding policy 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 to amortize prior service costs of defined benefit pension plans over the average future service period of act ive plan participants.

For most U.S. defined benefit pension plans and a majority of international defined benefit pension plans, accrued service is no longer granted. In place of these plans, the Company has established defined contribution pension plans providing for the Company to contribute a specified matching amount for participating employees' contributions to the plan. For U.S. employees, this match is made on employee contributions up to 4% of their eligible compensation. Additionally, the Company may provide a discretionary contribution of up to 2% of compensation for eligible employees. For non-U.S. employees, this match is up to 6% of eligible compensation with an additional 2% going towards insurance and administrative costs.

Net periodic pension cost for U.S. and international pension plans for 2010, 2009 and 2008 are as follows:

		U.S. Plans									International Plans

(In thousands)		2010			2009			2008			2010			2009			2008
Net Periodic Pension Cost (Income)
Defined benefit plans:
	Service cost	$	2,086		$	1,790		$	1,740		$	4,052		$	3,977		$	8,729
	Interest cost		14,049			14,104			15,197			47,558			42,854			50,146
	Expected return on plan assets		(16,632	)		(14,598	)		(23,812	)		(46,079	)		(41,453	)		(58,166	)
	Recognized prior service costs		339			351			333			327			353			897
	Recognized losses		2,537			3,466			1,167			12,077			9,353			10,317
	Amortization of transition liability		—			—			—			45			33			29
	Settlement/curtailment loss (gain)		179			4			(620	)		(210	)		(341	)		1,536

Defined benefit plans pension cost (income)			2,558			5,117			(5,995	)		17,770			14,776			13,488
Less discontinued operations included in above			—			—			(694	)		—			—			—

Defined benefit plans pension cost (income)—continuing operations			2,558			5,117			(5,301	)		17,770			14,776			13,488
Multi-employer plans			10,924			12,533			15,231			12,065			9,201			10,143
Defined contribution plans			5,918			7,104			7,806			7,629			8,235			8,131

	Net periodic pension cost—continuing operations	$	19,400		$	24,754		$	17,736		$	37,464		$	32,212		$	31,762

In 2008, the Company recognized a settlement gain of $0.9 million related to the Gas Technologies Segment that was sold in December 2007. The settlement gain was recognized upon final transfer of pension assets and liabilities to an authorized trust established by the purchaser of the Segment and is included above in U.S. Plans discontinued operations. Also in 2008, the Company implemented plan design changes for certain domestic and international defined benefit pension plans so that accrued service is no longer granted for periods after December 31, 2008. These actions resulted in a net curtailment loss of $1.5 million.

The change in the financial status of the pension plans and amounts recognized in the Consolidated Balance Sheets at December 31, 2010 and 2009 are as follows:

		U. S. Plans						International Plans

Defined Benefit Pension Benefits (In thousands)		2010			2009			2010			2009
Change in benefit obligation:
Benefit obligation at beginning of year		$	247,263		$	238,347		$	887,882		$	698,836
Service cost			2,086			1,790			4,052			3,977
Interest cost			14,049			14,104			47,558			42,854
Plan participants' contributions			—			—			1,862			1,131
Amendments			6			—			653			—
Actuarial loss (gain)			22,397			8,638			11,464			102,390
Settlements/curtailments			—			—			(1,410	)		(1,564	)
Benefits paid			(20,832	)		(15,616	)		(39,258	)		(35,771	)
Effect of foreign currency			—			—			(29,461	)		76,029

	Benefit obligation at end of year	$	264,969		$	247,263		$	883,342		$	887,882

Change in plan assets:
Fair value of plan assets at beginning of year		$	216,919		$	189,686		$	679,018		$	558,757
Actual return on plan assets			23,279			39,730			71,783			67,925
Employer contributions			2,307			3,119			16,868			25,601
Plan participants' contributions			—			—			1,862			1,131
Settlements/curtailments			—			—			(929	)		(1,110	)
Benefits paid			(20,832	)		(15,616	)		(38,764	)		(33,238	)
Effect of foreign currency			—			—			(21,813	)		59,952

	Fair value of plan assets at end of year	$	221,673		$	216,919		$	708,025		$	679,018

	Funded status at end of year	$	(43,296	)	$	(30,344	)	$	(175,317	)	$	(208,864	)

Amounts recognized in the Consolidated Balance Sheets consist of the following at December 31:

	U. S. Plans						International Plans

Defined Benefit Pension Benefits (In thousands)	2010			2009			2010			2009
Noncurrent assets	$	1,315		$	1,676		$	4,937		$	7,929
Current liabilities		(2,293	)		(2,175	)		(1,064	)		(1,129	)
Noncurrent liabilities		(42,318	)		(29,845	)		(179,190	)		(215,664	)
Accumulated other comprehensive loss before tax		101,909			89,209			319,879			357,388

Amounts recognized in Accumulated other comprehensive loss consist of the following at December 31:

		U. S. Plans				International Plans

(In thousands)		2010		2009		2010		2009
Net actuarial loss		$	100,924	$	87,712	$	316,561	$	354,201
Prior service cost			985		1,497		3,151		2,972
Transition obligation			—		—		167		215

	Total	$	101,909	$	89,209	$	319,879	$	357,388

The estimated amounts that will be amortized from accumulated other comprehensive loss into defined benefit net periodic pension cost in 2011 are as follows:

(In thousands)		U.S. Plans		International Plans

Net actuarial loss		$	2,982	$	10,953
Prior service cost			246		406
Transition obligation			—		57

	Total	$	3,228	$	11,416

The Company's estimate of expected contributions to be paid in year 2011 for the U.S. defined benefit plans is $3.0 million and for the international defined benefit plans is $38.2 million.

Contributions to multi-employer pension plans were $23.0 million, $22.5 million and $26.1 million in 2010, 2009 and 2008, respectively. Contributions to multi-employer 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 multi-employer plans for certain locations as part of the Harsco Infrastructure Segment's restructuring initiatives. These restructuring initiatives are described in Note 17, "Restructuring Programs." The $8.3 million of costs is included in the Other expenses line of the Consolidated Income Statement, as described in Note 15, "Other (Income) and Expenses."

Future Benefit Payments

The expected benefit payments for defined benefit plans over the next 10 years are as follows:

(In millions)	U.S. Plans		International Plans

2011	$	21.1	$	40.1
2012		16.3		41.3
2013		17.5		43.0
2014		18.2		45.4
2015		16.9		46.5
2016–2020		88.4		266.8

Net Periodic Pension Cost Assumptions

The weighted-average actuarial assumptions used to determine the net periodic pension cost 2010, 2009 and 2008 were as follows:

	Global Weighted Average December 31

	2010			2009			2008
Discount rates		5.8	%		6.1	%		5.9	%
Expected long-term rates of return on plan assets		7.5	%		7.4	%		7.6	%
Rates of compensation increase		3.6	%		3.4	%		3.6	%

	U. S. Plans December 31									International Plans December 31

	2010			2009			2008			2010			2009			2008
Discount rates		5.9	%		6.1	%		6.2	%		5.7	%		6.0	%		5.8	%
Expected long-term rates of return on plan assets		8.0	%		8.0	%		8.3	%		7.4	%		7.1	%		7.3	%
Rates of compensation increase		3.0	%		4.0	%		4.8	%		3.6	%		3.4	%		3.5	%

The expected long-term rates of return on plan assets for the 2011 net periodic pension cost are 7.8% for the U.S. plans and 7.4% for the international plans.

Defined Benefit Pension Obligation Assumptions

The weighted-average actuarial assumptions used to determine the defined benefit pension plan obligations at December 31 were as follows:

	Global Weighted Average December 31

	2010			2009
Discount rates		5.4	%		5.8	%
Rates of compensation increase		3.3	%		3.6	%

	U.S. Plans December 31						International Plans December 31

	2010			2009			2010			2009
Discount rates		5.3	%		5.9	%		5.5	%		5.7	%
Rates of compensation increase		3.0	%		3.0	%		3.3	%		3.6	%

The U.S. discount rate was determined using a yield curve that was produced from a universe containing approximately 500 U.S. dollar-denominated, AA-graded corporate bonds, all of which were noncallable (or callable with make-whole provisions), and excluding the 10% of the bonds with the highest yields and the 10% with the lowest yields. The discount rate was then developed as the level-equivalent rate that would produce the same present value as that using spot rates to discount the projected benefit payments. For international plans, the discount rate is aligned to corporate bond yields in the local markets, normally AA-rated corporations. The process and selection seeks to approximate the cash outflows with the timing and amounts of the expected benefit payments.

Accumulated Benefit Obligations

The accumulated benefit obligation for all defined benefit pension plans at December 31 was as follows:

(In millions)	U.S. Plans		International Plans

2010	$	264.8	$	869.3
2009	$	247.1	$	877.7

Plans with Accumulated Benefit Obligation in Excess of Plan Assets

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets at December 31 were as follows:

	U. S. Plans				International Plans

(In millions)	2010		2009		2010		2009
Projected benefit obligation	$	255.5	$	238.0	$	845.0	$	843.7
Accumulated benefit obligation		255.5		238.0		837.8		838.5
Fair value of plan assets		210.9		206.0		665.8		627.5

The asset allocations attributable to the Company's U.S. defined benefit pension plans at December 31, 2010 and 2009, and the long-term target allocation of plan assets, by asset category, are as follows:

			Percentage of Plan Assets at

U.S. Plans Asset Category	Target Long-Term Allocation		December 31, 2010			December 31, 2009
Domestic equity securities		41%—51%		50.5	%		47.5	%
International equity securities		5%—15%		11.9	%		11.1	%
Fixed income securities		27%—37%		30.5	%		32.7	%
Cash and cash equivalents		—%— 5%		1.5	%		1.4	%
Other		6%—18%		5.6	%		7.3	%

Plan assets are allocated among various categories of equities, fixed income, cash and cash 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 future benefit obligations. The Company periodically conducts an asset/liability modeling study and accordingly adjusts investments among and within asset categories to ensure the long-term investment strategy is aligned with the profile of benefit obligations.

The Company reviews the long-term expected return on asset assumption on a periodic basis taking into account a variety of factors including the historical investment returns achieved over a long-term period, the targeted allocation of plan assets and future expectations based on a model of asset returns for an actively managed portfolio, inflation and administrative/other expenses. The model simulates 600 different capital market results over 15 years. For 2011, the expected return-on-asset assumption for U.S. plans is 7.8%, compared with 8.0% for 2010.

The U.S. defined benefit pension plans assets include 432,549 shares of the Company's stock valued at $12.2 million at December 31, 2010 and 431,033 shares of the Company's common stock valued at $13.9 million at December 31, 2009. These shares represented 5.5% and 6.4% of total plan assets at December 31, 2010 and 2009, respectively. Dividends paid to the pension plans on the Company stock amounted to $0.4 million, $0.3 million and $0.3 million in 2010, 2009 and 2008, respectively.

The asset allocations attributable to the Company's international defined benefit pension plans at December 31, 2010 and 2009 and the long-term target allocation of plan assets, by asset category, are as follows:

				Percentage of Plan Assets at

International Plans Asset Category	Target Long-Term Allocation			December 31, 2010			December 31, 2009
Equity securities		47.5	%		48.7	%		46.0	%
Fixed income securities		42.5	%		42.6	%		43.9	%
Cash and cash equivalents		—	%		0.5	%		1.5	%
Other		10.0	%		8.2	%		8.6	%

Plan assets at December 31, 2010 in the U.K. defined benefit pension plan amounted to 84.7% of the international pension assets. These assets are allocated among various categories of equities, fixed income, cash and cash 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 future benefit obligations. The Company periodically conducts asset/liability modeling studies and accordingly adjusts investment amounts within asset categories to ensure the long-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 of expected returns in risk-free investments (primarily government bonds), the historical level of the risk premium associated with other asset classes in which the portfolio is invested and the expectations for future returns of each asset class and plan expenses. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected long-term rate of return on assets. For 2011, the expected return-on-asset assumption for the U.K. plan is 7.5%, which is the same assumption as for 2010. The remaining international pension plans, with assets representing 15.3% of the international pension assets, are under the guidance of professional investment managers and have similar investment objectives.

The fair values of the Company's U.S. pension plans' assets at December 31, 2010 by asset class are as follows:

(In thousands)		Total		Level 1		Level 2		Level 3

Domestic equities:
	Common stocks	$	52,930	$	52,930	$	—	$	—
	Mutual funds—equities		59,049		15,167		43,882		—
International equities—mutual funds			26,354		14,666		11,688		—
Fixed income investments:
	U.S. Treasuries and collateralized securities		22,039		—		22,039		—
	Corporate bonds and notes		9,920		9,920		—		—
	Mutual funds—bonds		35,588		35,588		—		—
Other—mutual funds			12,375		12,375		—		—
Cash and money market accounts			3,418		3,418		—		—

	Total	$	221,673	$	144,064	$	77,609	$	—

The fair values of the Company's international pension plans' assets at December 31, 2010 by asset class are as follows:

(In thousands)		Total		Level 1		Level 2		Level 3

Equity securities:
	Mutual funds—equities	$	344,445	$	119,864	$	224,581	$	—
Fixed income investments:
	Corporate bonds and notes		3,382		1,038		2,344		—
	Mutual funds—bonds		240,683		25,419		215,264		—
	Insurance contracts		57,324		—		57,324		—
Other:
	Real estate funds/limited partnerships		40,173		—		29,989		10,184
	Other mutual funds		18,832		—		18,832		—
	Cash and money market accounts		3,187		3,187		—		—

Total		$	708,026	$	149,508	$	548,334	$	10,184

The fair values of the Company's U.S. pension plans' assets at December 31, 2009 by asset class are as follows:

(In thousands)		Total		Level 1		Level 2		Level 3

Domestic equities:
	Common stocks	$	50,211	$	50,211	$	—	$	—
	Mutual funds—equities		52,734		13,892		38,842		—
International equities—mutual funds			24,035		11,012		13,023		—
Fixed income investments:
	U.S. Treasuries and collateralized securities		25,525		—		25,525		—
	Corporate bonds and notes		6,327		6,327		—		—
	Mutual funds—bonds		39,110		39,110		—		—
Other—mutual funds			16,039		15,918		121		—
Cash and money market accounts			2,938		2,938		—		—

	Total	$	216,919	$	139,408	$	77,511	$	—

The fair values of the Company's international pension plans' assets at December 31, 2009 by asset class are as follows:

(In thousands)		Total		Level 1		Level 2		Level 3

Equity securities:
	Common stocks	$	35,037	$	35,037	$	—	$	—
	Mutual funds—equities		277,069		120,356		156,713		—
Fixed income investments:
	British government securities		46,299		—		46,299		—
	Corporate bonds and notes		26,809		26,809		—		—
	Mutual funds—bonds		168,201		—		168,201		—
	Insurance contracts		56,955		—		56,955		—
Other:
	Real estate funds/limited partnerships		40,177		—		29,183		10,994
	Other mutual funds		18,190		15,033		3,157		—
Cash and money market accounts			10,281		10,281		—		—

	Total	$	679,018	$	207,516	$	460,508	$	10,994

The following table summarizes changes in the fair value of Level 3 assets for 2009 and 2010:

(In thousands)		Real Estate Limited Partnerships

Balance at December 31, 2008		$	8,438
Actual return on plan assets:
	Relating to assets still held at year-end		2,556

Balance at December 31, 2009			10,994
Actual return on plan assets:
	Relating to assets still held at year-end		(810	)

Balance at December 31, 2010		$	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 held by the Plan at year-end. The fair values of common and foreign stocks and corporate bonds, notes and convertible debentures 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 an active market are not available are valued by the investment advisor based on the current market values of the underlying assets of the mutual fund based on information reported by the investment consistent with audited financial statements of the mutual fund. Further information concerning these mutual funds may be obtained from their separate audited financial statements. Investments in U.S. Treasury notes and collateralized securities are valued based on yields currently available on comparable 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 the underlying assets. The limited partnership interests are valued using unobservable inputs and have been classified within Level 3 of the fair value hierarchy.

Income Taxes

12 Months Ended

Dec. 31, 2010

Income Taxes

Income Taxes

9. Income Taxes

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

(In thousands)			2010			2009			2008

United States			$	23,037		$	51,529		$	98,842
International				(2,561	)		107,309			243,594

	Total income before income taxes and equity income		$	20,476		$	158,838		$	342,436

Income tax expense (benefit):
	Currently payable:
		Federal	$	(325	)	$	23,886		$	33,873
		State		453			1,591			1,988
		International		30,765			26,938			54,817

	Total income taxes currently payable			30,893			52,415			90,678
	Deferred federal and state			6,172			(28,018	)		1,478
	Deferred international			(32,789	)		(5,888	)		(336	)

	Total income tax expense		$	4,276		$	18,509		$	91,820

Cash payments for income taxes, including taxes on the gain or loss from discontinued business, were $27.4 million, $57.1 million and $120.6 million for 2010, 2009 and 2008, respectively.

The following is a reconciliation of the normal expected statutory U.S. federal income tax rate to the effective rate as a percentage of Income from continuing operations before income taxes and noncontrolling interest as reported in the Consolidated Statements of Income:



U.S. federal income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal income tax benefit	5.2		1.0		0.9
U.S. domestic manufacturing deductions and credits	(6.6	)	(1.6	)	(0.5	)
Change in permanent reinvestment assertion	9.3		(5.0	)	—
Difference in effective tax rates on international earnings and remittances	(26.2	)	(25.0	)	(8.1	)
Uncertain tax position contingencies and settlements	1.2		4.0		(0.4	)
Cumulative effect in change in statutory tax rates/laws	3.4		2.8		(0.4	)
Other, net	(0.4	)	0.4		0.2

Effective income tax rate	20.9	%	11.6	%	26.7	%

The increase in the effective income tax rate for 2010 compared with 2009 is a reflection of certain non-recurring net discrete tax benefits recognized in 2009. The 2009 net discrete tax benefits included a change in the permanent reinvestment of prior year undistributed earnings and the recognition of previously unrecognized tax benefits in certain foreign and state jurisdictions, offset by an increase in unrecognized tax benefits related to an ongoing dispute between the European Union and a specific European country. During 2010, the Company evaluated its historical permanent reinvestment assertion for one foreign subsidiary that, during the fourth quarter of 2010, generated incremental cash flows above what was previously anticipated during the December 2010 quarter. The Company concluded that it could not permanently reinvest this incremental cash flow at the foreign s ubsidiary. Accordingly, the Company recorded a deferred tax liability in the amount of $1.9 million, or 9.3% as reflected in the effective tax rate reconciliation above, for the tax costs associated with the future repatriation of the cash. Included in Other for 2010 are $3.5 million of non-recurring, out-of-period benefits related primarily to deferred charges from historical intercompany sales of inventory and adjustments of other deferred tax balances, offset by a tax charge of $1.7 million related to valuation allowance activity for a specific foreign operating jurisdiction and a U.S. tax charge on certain non-deductible items of $1.7 million.

The tax effects of the temporary differences giving rise to the Company's deferred tax assets and liabilities at December 31, 2010 and 2009 are as follows:

		2010					2009

(In thousands)		Asset			Liability		Asset			Liability
Depreciation and amortization		$	—		$	144,361	$	—		$	177,393
Expense accruals			46,116			—		37,720			—
Inventories			3,582			—		4,813			—
Provision for receivables			2,871			—		2,129			—
Deferred revenue			—			1,979		—			4,838
Operating loss carryforwards			57,318			—		48,822			—
Deferred foreign tax credits			31,718			—		17,061			—
Pensions			60,626			—		61,403			—
Currency adjustments			28,721			—		66,791			—
Post-retirement benefits			1,117			—		1,133			—
Other			17,245			—		12,225			—

	Subtotal		249,314			146,340		252,097			182,231
Valuation allowance			(29,469	)		—		(22,744	)		—

Total deferred income taxes		$	219,845		$	146,340	$	229,353		$	182,231

The deferred tax asset and liability balances recognized in the Consolidated Balance Sheets at December 31, 2010 and 2009 are as follows:

(In thousands)	2010			2009

Other current assets	$	47,279		$	82,606
Other assets		64,672			57,083
Other current liabilities		(2,804	)		(1,574	)
Deferred income taxes		(35,642	)		(90,993	)

At December 31, 2010, the tax-effected amount of net operating loss carryforwards ("NOLs") totaled $57.3 million. Tax-effected NOLs from international operations are $43.9 million. Of that amount, $37.8 million can be carried forward indefinitely, and $6.1 million will expire at various times between 2012 and 2025. Tax-effected U.S. federal NOLs are $3.7 million. Of that amount, $0.2 million relate to preacquisition NOLs that expire in 2022, and $3.5 million relate to current period NOLs that expire in 2030. Tax-effected U.S. state NOLs are $9.7 million. Of that amount, $0.3 million expire at various times between 2011 and 2015, $1.7 million expire at various times between 2016 and 2020, $4.1 million expire at various times between 2021 and 2025, and $3.6 mil lion expire at various times between 2026 and 2030.

The valuation allowances of $29.5 million and $22.7 million at December 31, 2010 and 2009, respectively, related principally to NOLs, currency translation and foreign investment tax credits that are uncertain as to realizability.

The change in the valuation allowances for 2010 and 2009 results primarily from the increase in valuation allowances in certain jurisdictions based on the Company's evaluation of the realizability of future benefits partially offset by the utilization of NOLs and the release of valuation allowances in certain jurisdictions based on the Company's revaluation of the realizability of future benefits.

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. At December 31, 2010 and 2009, such earnings were approximately $857 million and $843 million, respectively. If these earnings were repatriated at December 31, 2010, the one-time tax cost associated with the repatriation would be approximately $154 million. The Company has various tax holidays in the Middle East and Asia that expire between 2011 and 2012. The Company no longer has tax holidays in Europe as they have all expired. During 2010 and 2009 these tax holidays resulted in no change to income tax expense and during 2008 they resulted in $0.2 million in reduced income tax expense.

The Company recognizes accrued interest and penalty expense related to unrecognized income tax benefits ("UTB") in income tax expense. During 2010, 2009 and 2008, the Company recognized an income tax benefit of $0.3 million, and income tax expense of $3.3 million and $3.2 million, respectively, for interest and penalties. The Company accrued $10.7 million and $11.0 million for the payment of interest and penalties at December 31, 2010 and 2009, respectively.

A reconciliation of the change in the UTB balance from January 1, 2008 to December 31, 2010 is as follows:

(In thousands)	Unrecognized Income Tax Benefits			Deferred Income Tax Benefits			Unrecognized Income Tax Benefits, Net of Deferred Income Tax Benefits

Balance at January 1, 2008	$	30,176		$	(2,332	)	$	27,844
Additions for tax positions related to the current year (includes currency translation adjustment)		2,723			—			2,723
Additions for tax positions related to prior years (includes currency translation adjustment)		2,753			(629	)		2,124
Reductions for tax positions related to acquired entities in prior years, offset to goodwill		(92	)		—			(92	)
Other reductions for tax positions related to prior years		(6,080	)		1,077			(5,003	)
Settlements		(5,181	)		705			(4,476	)

Balance at December 31, 2008	$	24,299		$	(1,179	)	$	23,120

Additions for tax positions related to the current year (includes currency translation adjustment)		7,868			(11	)		7,857
Additions for tax positions related to prior years (includes currency translation adjustment)		10,625			(49	)		10,576
Other reductions for tax positions related to prior years		(4,007	)		117			(3,890	)
Statutes of limitation expirations		(1,934	)		152			(1,782	)
Settlements		(60	)		21			(39	)

Balance at December 31, 2009	$	36,791		$	(949	)	$	35,842

Additions for tax positions related to the current year (includes currency translation adjustment)		1,846			—			1,846
Additions for tax positions related to prior years (includes currency translation adjustment)		313			(44	)		269
Other reductions for tax positions related to prior years		(429	)		—			(429	)
Statutes of limitation expirations		(2,348	)		156			(2,192	)
Settlements		(284	)		99			(185	)

Total unrecognized income tax benefits that, if recognized, would impact the effective income tax rate at December 31, 2010	$	35,889		$	(738	)	$	35,151

Included in the additions for tax positions related to current and prior years for 2010 is approximately $0.8 million of unrecognized tax benefits that created additional NOLs in a foreign jurisdiction. To the extent the unrecognized tax benefit is recognized, a full valuation allowance would be recorded against the NOLs.

Within the next twelve months, it is reasonably possible that up to $8.5 million of unrecognized income tax benefits will be recognized upon settlement of tax examinations and the expiration of various statutes of limitations.

The Company files its income tax returns as prescribed by the tax laws of the jurisdictions in which it operates. With few exceptions, the Company is no longer subject to U.S. and foreign examinations by tax authorities for the years through 2004.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2010

Commitments and Contingencies

Commitments and Contingencies

10. Commitments and Contingencies

Environmental

The Company is involved in a number of environmental remediation investigations and cleanups and, along with other companies, has been identified as a "potentially responsible party" for certain waste disposal sites. While each of these matters is subject to various uncertainties, it is probable that the Company will agree to make payments toward funding certain of these activities and it is possible that some of these matters will be decided unfavorably to the Company. The Company has evaluated its potential liability, and its financial exposure is dependent upon such factors as the continuing evolution of environmental laws and regulatory requirements, the availability and application of technology, the allocation of cost among potentially responsible parties, the years of remedial activity required and the remediation methods selected. The Consolidated Balance Sheets at December 31, 2010 and 2009 include accruals in Other current liabilities of $4.2 million and $3.1 million, respectively, for environmental matters. The amounts charged against pre-tax income related to environmental matters totaled $2.6 million, $1.5 million and $1.5 million in 2010, 2009 and 2008, respectively.

In January 2010, the Company received a Notification of Penalty ("NOP") from the United States Environmental Protection Agency (the "EPA") with respect to its Saxonburg, Pennsylvania (no longer in existence) and Sarver, Pennsylvania facilities of the Harsco Metals & Minerals Segment. The EPA issued the NOP for the Company's alleged failure to file certain reports relating to the storage of certain chemicals commonly used by business, with the appropriate state and local agencies. The Company settled the matter with the EPA pursuant to the terms of a Consent Agreement and Final Order, which included the Company paying a penalty of approximately $146,000.

In December 2010, the EPA issued a Notice of Violation in connection with the Warren, Ohio, site of the Company's Harsco Metals & Minerals Segment. The EPA and the Company have entered into negotiations in order to settle this matter. The penalties associated with settling this matter could exceed $0.1 million.

The Company evaluates its liability for future environmental remediation costs on a quarterly basis. Actual costs to be incurred at identified sites in future periods may vary from the estimates, given inherent uncertainties in evaluating environmental exposures. The Company does not expect that any sum it may have to pay in connection with environmental matters in excess of the amounts recorded or disclosed above would have a material adverse effect on its financial position, results of operations or cash flows.

Gas Technologies Divestiture

In October 2009, the Company and Taylor-Wharton International ("TWI"), the purchaser of the Company's Gas Technologies business, satisfactorily resolved certain claims and counterclaims that had been submitted to arbitration. The claims and counterclaims related both to net working capital adjustments associated with the divestiture and to alleged breach of certain representations and warranties made by the Company. The settlement and related costs and fees were reflected in the $15.1 million after-tax loss from discontinued operations recorded by the Company for the twelve months ended December 31, 2009.

In November 2009, TWI filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. As part of its filing, TWI filed a motion to reject certain executory contracts, including the parties' Asset and Stock Purchase Agreement dated at December 7, 2007 (the "ASPA"). TWI, however, did not seek to reject the settlement agreement finalized in October 2009 between the Company and TWI.

In May and June 2010, the bankruptcy court entered orders confirming TWI's plan of reorganization and approving TWI's rejection of certain executory contracts, including the ASPA. On June 15, 2010, the reorganized TWI emerged from bankruptcy. On August 23, 2010, TWI commenced an adversary proceeding against the Company and certain third party tort plaintiffs in the Bankruptcy Court seeking an order declaring that the rejection order excuses TWI's contractual assumption of the assumed liabilities. On November 23, 2010, the Bankruptcy Court issued an opinion and entered an order granting the Company's motion to dismiss and holding that TWI's assumption of the assumed liabilities was not rejected during the bankruptcy. On February 8, 2011, TWI, the Company and certain insurers reached a settlement regarding these matters, the terms of which are confidential.

The Company recorded a pre-tax charge of $5.0 million in 2010 related to potential and contingent third party tort claims and this charge was recorded in Loss from Discontinued Operations. The Company reasonably believes at this time that sufficient coverage for claims relating to these matters exists, both as a result of the settlement and reserves established prior to the settlement. Claims are inherently uncertain and, as a result, potential claims could be resolved at an amount significantly above the amount recorded.

Value-Added Tax Dispute

The Company is involved in a value-added and services ("ICMS") tax dispute with the State Revenue Authorities from the State of São Paulo, Brazil (the "SPRA"). In October 2009, the Company received notification of the SPRA's administrative decision regarding the levying of ICMS in the State of São Paulo in relation to services provided to one of the Company's customers in the State between January 2004 and May 2005. The assessment from the SPRA is approximately $12 million, including tax, penalty and interest and could increase to reflect additional interest accrued since December 2007.

The Company believes that it does not have liability for this assessment and will vigorously contest it under various alternatives, including judicial appeal. Any ultimate final determination of this assessment is not likely to have a material adverse effect on the Company's annual results of operations, cash flows or financial condition.

Other

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

The Company believes that the claims against it are without merit. The Company has never been a producer, manufacturer or processor of asbestos fibers. Any component within a Company product that may have contained asbestos would have been purchased from a supplier. Based on scientific and medical evidence, the Company believes that any asbestos exposure arising from normal use of any Company product never presented any harmful levels of airborne asbestos exposure, and moreover, the type of asbestos contained in any component that was used in those products was protectively encapsulated in other materials and is not associated with the types of injuries 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 York complaints contain a standard claim for damages of $20 million or $25 million against the approximately 90 defendants, regardless of the individual plaintiff's alleged medical condition, and without specifically identifying any Company product as the source of plaintiff's asbestos exposure.

At December 31, 2010, there are 19,316 pending asbestos personal injury claims filed against the Company. Of these cases, 18,813 are pending in the New York Supreme Court for New York County in New York State. The other claims, totaling 503, are filed in various counties in a number of state courts, and in certain Federal District Courts (including New York), and those complaints generally assert lesser amounts of damages than the New York State court cases or do not state any amount claimed.

At December 31, 2010, the Company has obtained dismissal by stipulation, or summary judgment prior to trial, in 25,370 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 could favorably affect the Company's ability to defend these asbestos claims in those jurisdictions. These developments include procedural changes, docketing changes, proof of damage requirements and other changes that require plaintiffs to follow specific procedures in bringing their claims and to show proof of damages before they can proceed with their claim. An example is the action taken by the New York Supreme Court (a trial court), which is responsible for managing all asbestos cases pending within New York County in the State of New York. This Court issued an order in December 2002 that created a Deferred or Inactive Docket for all pending and future asbestos claims filed by plaintiffs who cannot demonstrate that they have a malignant condition or discernable physical impairment, and an Active or In Extremis Docket for plaintiffs who are able to show such medical condition. As a result of this order, the majority of the asbestos cases filed against the Company in New York County have been moved to the Inactive Docket until such time as the plaintiffs can show that they have incurred a physical impairment. At December 31, 2010, the Company has been listed as a defendant in 832 Active or In Extremis asbestos cases in New York County. The Court's Order has been challenged by plaintiffs.

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

The Company intends to continue its practice of vigorously defending these cases as they are listed for trial. It is not possible to predict the ultimate outcome of asbestos-related lawsuits, claims and proceedings due to the unpredictable nature of personal injury litigation. Despite this uncertainty, and although results of operations and cash flows for a given period could be adversely affected by asbestos-related lawsuits, claims and proceedings, management believes that the ultimate outcome of these cases will not have a material adverse effect on the Company's financial condition, results of operations or cash flows.

The Company is subject to various other claims and legal proceedings covering a wide range of matters that arose in the ordinary course of business. In the opinion of management, all such matters are adequately covered by insurance or by accruals, and if not so covered, are without merit or are of such kind, or involve such amounts, as would not have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Insurance liabilities are recorded when it is probable that a liability has been incurred for a particular event and the amount of loss associated with the event can be reasonably estimated. Insurance reserves have been estimated based primarily upon actuarial calculations and reflect the undiscounted estimated liabilities for ultimate losses including claims incurred but not reported. Inherent in these estimates are assumptions that are based on the Company's history of claims and losses, a detailed analysis of existing claims with respect to potential value, and current legal and legislative trends. If actual claims differ from those projected by management, changes (either increases or decreases) to insurance reserves may be required and would be recorded through income in the period the change was determined. When a recognized liability is covered by third-party insuran ce, the Company records an insurance claim receivable to reflect the covered liability. Insurance claim receivables are included in Other receivables in the Company's Consolidated Balance Sheets. See Note 1, "Summary of Significant Accounting Policies," for additional information on Accrued Insurance and Loss Reserves.

Capital Stock

12 Months Ended

Dec. 31, 2010

Capital Stock

Capital Stock

11. 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"). None of the preferred stock has been issued. On September 25, 2007, the Board approved a revised Preferred Stock Purchase Rights Agreement (the "Agreement"). Under the Agreement, the Board authorized and declared a dividend distribution to stockholders of record on October 9, 2007, of one right for each share of common stock outstanding on the record date. The rights may only be exercised 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 right entitles the holder to purchase 1/100th share of Harsco Series A Junior Participating Cumulative Preferred Stock at an exercise price of $230. Once the rights become exercisable, the holder of a right will be entitled, upon payment of the exercise price, to purchase a number of shares of common stock calculated to have a value of two times the exercise price of the right. The rights, which expire on October 9, 2017, do not have voting power, and may be redeemed by the Company at a price of $0.001 per right at any time until the 10th business day following public announcement that a person or group has accumulated 15% or more of the Company's common stock. The Agreement also includes an exchange feature. At December 31, 2010, 805,141 shares of $1.25 par value preferred stock were reserved for issuance upon exercise of the rights.

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



2008	2,000,000	4,000,000	4,463,353	1,536,647
2009	1,536,647	463,353	—	2,000,000
2010	2,000,000	—	—	2,000,000

The Company's share repurchase program was extended by the Board of Directors in November 2010. The repurchase program expires January 31, 2012. At December 31, 2010, there are 2,000,000 authorized shares remaining in the program. When and if appropriate, repurchases are made in open market transactions, depending on market conditions. Repurchases may not be made and may be discontinued at any time.

In addition to the above purchases, 38,909, 53,029 and 29,346 shares were repurchased in 2010, 2009 and 2008, respectively, in connection with the issuance of shares as a result of vested restricted stock units. In 2010 and 2009, 24,008 and 15,645 shares, respectively, were repurchased in connection with the issuance of shares as a result of stock option exercises. The following table summarizes the Company's common stock:

	Common Stock

	Shares Issued		Treasury Shares		Outstanding Shares
Outstanding, January 1, 2008		110,932,619		26,472,753		84,459,866
Stock Options Exercised		121,176		—		121,176
Vested Restricted Stock Units		86,193		29,346		56,847
Purchases		—		4,463,353		(4,463,353	)

Outstanding, December 31, 2008		111,139,988		30,965,452		80,174,536
Stock Options Exercised		92,250		15,645		76,605
Vested Restricted Stock Units		154,947		53,029		101,918

Outstanding, December 31, 2009		111,387,185		31,034,126		80,353,059
Stock Options Exercised		115,493		24,008		91,485
Vested Restricted Stock Units		108,424		38,909		69,515

Outstanding, December 31, 2010		111,611,102		31,097,043		80,514,059

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

(Amounts in thousands, except per share data)		2010		2009		2008

Income from continuing operations attributable to Harsco Corporation common stockholders		$	10,885	$	133,838	$	245,623

Weighted average shares outstanding—basic			80,569		80,295		83,599
Dilutive effect of stock-based compensation			192		291		430

Weighted average shares outstanding—diluted			80,761		80,586		84,029

Earnings from continuing operations per common share, attributable to Harsco Corporation common stockholders:
	Basic	$	0.14	$	1.67	$	2.94

	Diluted	$	0.13	$	1.66	$	2.92

At December 31, 2010 and 2009, restricted stock units outstanding of 9,206 and 21,675, respectively, were not included in diluted weighted average shares outstanding because the effect was antidilutive. All outstanding stock options at December 31, 2010 and 2009, and all outstanding stock options and restricted stock units at December 31, 2008 were included in the computation of diluted earnings per share.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2010

Stock-Based Compensation

Stock-Based Compensation

12. Stock-Based Compensation

The 1995 Executive Incentive Compensation Plan, as amended, authorizes the issuance of up to 8,000,000 shares of the Company's common stock for use in paying incentive compensation awards in the form of stock options or other equity awards such as restricted stock, restricted stock units or stock appreciation rights. The 1995 Non-Employee Directors' Stock Plan authorizes the issuance of up to 600,000 shares of the Company's common stock for equity awards. Both plans have been approved by the Company's stockholders. At December 31, 2010, there were 2,160,090 and 233,000 shares available for granting equity awards under the 1995 Executive Incentive Compensation Plan and the 1995 Non-Employee Directors' Stock Plan, respectively.

The Board of Directors approves the granting of performance-based restricted stock units as the long-term equity component of director, officer and certain key employee compensation. The restricted stock units require no payment from the recipient and compensation cost is measured based on the market price on the grant date and is generally recorded over the vesting period. The vesting period for restricted stock units granted to non-employee directors is one year, and each restricted stock unit is exchanged for a like number of shares of Company stock following the termination of the participant's service as a director. Restricted stock units granted to officers and certain key employees generally vest on a pro rata basis over a three-year period, and the specified retirement age is 62. Upon vesting, each restricted stock unit is exchanged for a like number of shares of th e Company's stock. Restricted stock units do not have an option for cash payment.

The following table summarizes restricted stock units issued and the compensation expense recorded for 2010, 2009 and 2008:

						Expense (Income)

		Restricted Stock Units		Fair Value per Unit		Expense (Income)
Stock-Based Compensation Expense (Income) (Dollars in thousands, except per unit)		Restricted Stock Units		Fair Value per Unit		2010		2009			2008
Directors:
	May 1, 2007		16,000	$	50.62	$	—	$	—		$	270
	May 1, 2008		16,000		58.36		—		311			623
	May 1, 2009		16,000		27.28		145		291			—
	May 3, 2010		16,000		30.99		331		—			—
Employees:
	January 24, 2005		65,400		25.21		—		—			21
	January 24, 2006		93,100		33.85		—		(191	)(a)		632
	January 23, 2007		101,700		38.25		41		761			1,035
	January 22, 2008		130,950		45.95		1,601		1,371			2,652
	January 27, 2009		106,625		25.15		667		1,174			—
	November 19, 2009		15,000		31.90		298		169			—
	January 25, 2010		1,000		31.49		20		—			—
	September 22, 2010		25,000		23.47		194		—			—

Total			602,775			$	3,297	$	3,886		$	5,233

(a): Due primarily to forfeitures of restricted stock units.

Restricted stock unit activity for 2010, 2009 and 2008 was as follows:

			Weighted Average Grant-Date Fair Value

Nonvested at January 1, 2008	211,934		$	34.12
Granted	146,950			47.30
Vested	(95,570	)		34.43
Forfeited	(5,584	)		39.78

Nonvested at December 31, 2008	257,730			41.40
Granted	137,625			26.13
Vested	(153,283	)		38.46
Forfeited	(12,581	)		36.97

Nonvested at December 31, 2009	229,491			34.45
Granted	42,000			26.53
Vested	(124,424	)		35.81
Forfeited	(6,532	)		35.23

Nonvested at December 31, 2010	140,535		$	30.83

At December 31, 2010, the total unrecognized compensation cost related to nonvested restricted stock units was $1.3 million, which is expected to be recognized over a period of approximately one year.

There was a $0.1 million and $0.3 million decrease of excess tax benefits principally from restricted stock units recognized in 2010 and 2009, respectively, while excess tax benefits from the exercise of stock options increased $1.7 million in 2008.

From time to time, the Company may grant incentive stock options and nonqualified stock options to officers, certain key employees and 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 price of the stock options would be the fair value on the grant date. There were no stock options granted during 2010, 2009 or 2008.

Stock option activity for 2010, 2009 and 2008 was as follows:

	Stock Options

	Shares Under Option			Weighted Average Exercise Price		Aggregate Intrinsic Value (in millions)(a)
Outstanding, January 1, 2008		604,996		$	15.30	$	29.9
Exercised		(121,176	)		14.96

Outstanding, December 31, 2008		483,820		$	15.39	$	5.7
Exercised		(92,250	)		14.25
Expired		(1,600	)		14.57

Outstanding, December 31, 2009		389,970		$	15.66	$	6.7
Exercised		(115,493	)		13.77
Expired		(805	)		16.33

Outstanding, December 31, 2010		273,672		$	16.46	$	3.3

(a): Intrinsic value is defined as the difference between the current market value and the exercise price.

The total intrinsic value of options exercised during 2010, 2009 and 2008 was $1.7 million, $1.4 million and $4.5 million, respectively.

Options to purchase 273,672 shares were exercisable at December 31, 2010. The following table summarizes information concerning outstanding and exercisable options at December 31, 2010.

	Stock Options Outstanding and Exercisable

Range of Exercisable Prices	Number Outstanding and Exercisable		Remaining Contractual Life In Years		Weighted Average Exercise Price
$12.81–$13.97		34,932		0.22	$	13.50
16.32–16.33		182,540		1.05		16.33
16.96–20.96		56,200		1.78		18.73

		273,672

Financial Instruments

12 Months Ended

Dec. 31, 2010

Financial Instruments

Financial Instruments

13. Financial Instruments

Off-Balance Sheet Risk

As collateral for the Company's performance and to insurers, the Company is contingently liable under standby letters of credit, bonds and bank guarantees in the amounts of $286.1 million and $280.1 million at December 31, 2010 and 2009, respectively. These standby letters of credit, bonds and bank guarantees are generally in force for up to four years. Certain issues have no scheduled expiration date. The Company pays fees to various banks and insurance companies that range from 0.25 percent to 2.30 percent per annum of the instruments' face value. If the Company were required to obtain replacement standby letters of credit, bonds and bank guarantees at December 31, 2010 for those currently outstanding, it is the Company's opinion that the replacement costs would be within the present fee structure.

Information by Segment and Geographic Area

12 Months Ended

Dec. 31, 2010

Information by Segment and Geographic Area

Information by Segment and Geographic Area

14. Information by Segment and Geographic Area

The Company reports information about its operating segments using the "management approach," which is based on the way management organizes and reports the segments within the enterprise for making operating decisions and assessing performance. The Company's reportable segments are identified based upon differences in products, services and markets served.

The Harsco Minerals businesses, which were previously a component of an "All Other" Category, are now reported with the Harsco Metals Segment to form the Harsco Metals & Minerals Segment. This reflects the increasing operating synergies of these businesses within the Company's global markets as well as the combined management of these businesses. The remaining businesses of the "All Other" Category are now being reported as the Harsco Industrial operating segment, which also reflects the combined management of these businesses. The "All Other" Category is no longer utilized.

The Company has four reportable segments. These segments and the types of products and services offered include the following:

Harsco Infrastructure Segment

Major services include project engineering and equipment installation, as well as the sale and rental of scaffolding, shoring and concrete forming systems for industrial maintenance and capital improvement projects, civil infrastructure projects, non-residential construction, and international multi-dwelling residential construction projects, primarily international. Services are provided to industrial and petrochemical plants; the infrastructure construction, repair and maintenance markets; commercial and industrial construction contractors; and public utilities.

Harsco Metals & Minerals Segment

These businesses provide on-site, outsourced services to steel mills and other metal producers such as aluminum and copper. Services include slag processing; semi-finished inventory management; material handling; scrap management; in-plant transportation; and a variety of other services. Other major products and services include minerals and recycling technologies; environmental solutions for metals and mining customers' waste streams; and granules for asphalt roofing shingles as well as abrasives for industrial surface preparation derived from coal slag. Major customers include steel mills and asphalt roofing manufacturers.

Harsco Rail Segment

This segment manufactures railway track maintenance equipment and provides track maintenance services. The major customers include private and government-owned railroads and urban mass transit systems worldwide.

Harsco Industrial Segment

Major products include industrial grating; air-cooled heat exchangers; and boilers and water heaters. Major customers include industrial plants and the non-residential, commercial and public construction and retrofit markets; and the natural gas exploration and processing industry.

Other Information

The measurement basis of segment profit or loss is operating income. Sales of the Company in the United States and the United Kingdom exceeded 10% of consolidated sales with 33% and 14%, respectively, in 2010; 34% and 15%, respectively, in 2009; and 32% and 17%, respectively, in 2008. There are no significant inter-segment sales.

In 2010, 2009 and 2008, sales to one customer, ArcelorMittal, principally in the Harsco Metals & Minerals Segment, were $359.0 million, $305.6 million and $416.6 million, respectively, which represented more than 10% of the Company's consolidated sales for those years. These sales 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 2010, 2009 and 2008 there were two customers, including ArcelorMittal, that each provided in excess of 10% of this Segment's revenues under multiple long-term contracts at several mill sites. The loss of any one of these contracts would not have a material adverse impact upon the Company's financial position or cash flows; however, it could have a material effe ct on quarterly or annual results of operations. Additionally, consolidation in the global steel industry has increased the Company's exposure to these customers. Should additional consolidations occur involving some of the steel industry's larger companies which are customers of the Company, it would result in an increase in concentration of credit risk for the Company.

Corporate assets include principally cash, insurance receivables, prepaid taxes and U.S. deferred income taxes. Net Property, Plant and Equipment in the United States represented 21%, 22% and 24% of total net Property, Plant and Equipment at December 31, 2010, 2009 and 2008, respectively. Net Property, Plant and Equipment in the United Kingdom represented 10%, 14% and 15% of total Net Property, Plant and Equipment at December 31, 2010, 2009 and 2008, respectively.

In the fourth quarter of 2010, the Harsco Infrastructure Segment implemented a comprehensive restructuring initiative as a countermeasure to global economic and financial conditions that adversely affected the Company's end markets. This Segment recorded net pre-tax charges of $84.4 million related to this restructuring initiative. See Note 17, "Restructuring Programs," to the Consolidated Financial Statements under Part II, Item 8, "Financial Statements and Supplementary Data" for additional disclosure regarding this restructuring program.

Operating Information by Segment

		Twelve Months Ended December 31,

(In thousands)		2010			2009			2008
Sales
	Harsco Infrastructure	$	1,031,807		$	1,159,200		$	1,540,258
	Harsco Metals & Minerals		1,461,531			1,257,098			1,778,977
	Harsco Rail		313,262			306,016			277,595
	Harsco Industrial		231,898			268,023			370,752
	Corporate		180			240			240

Total Sales		$	3,038,678		$	2,990,577		$	3,967,822

Operating Income (Loss)
	Harsco Infrastructure	$	(145,346	)	$	68,437		$	185,382
	Harsco Metals & Minerals		117,915			43,303			137,609
	Harsco Rail		66,124			56,542			36,406
	Harsco Industrial		42,871			55,084			62,251
	Corporate		(3,133	)		(4,710	)		(9,660	)

Total Operating Income (Loss)		$	78,431		$	218,656		$	411,988

Total Assets
	Harsco Infrastructure	$	1,534,379		$	1,669,401		$	1,607,171
	Harsco Metals & Minerals		1,541,117			1,648,878			1,615,137
	Harsco Rail		208,338			208,877			207,926
	Harsco Industrial		58,918			58,587			80,918
	Corporate		126,468			53,497			51,818

Total Assets		$	3,469,220		$	3,639,240		$	3,562,970

Depreciation and Amortization
	Harsco Infrastructure	$	114,861		$	101,465		$	110,227
	Harsco Metals & Minerals		180,306			191,647			208,499
	Harsco Rail		11,110			11,106			12,320
	Harsco Industrial		2,832			2,923			2,941
	Corporate		6,130			4,390			3,962

Total Depreciation and Amortization		$	315,239		$	311,531		$	337,949

Capital Expenditures
	Harsco Infrastructure	$	54,858		$	41,530		$	226,559
	Harsco Metals & Minerals		123,153			102,762			220,446
	Harsco Rail		9,498			7,699			5,393
	Harsco Industrial		1,722			2,674			2,952
	Corporate		3,117			10,655			2,267

Total Capital Expenditures		$	192,348		$	165,320		$	457,617

Reconciliation of Segment Operating Income to Consolidated Income From Continuing Operations Before Income Taxes and Equity Income

	Twelve Months Ended December 31,

(In thousands)	2010			2009			2008
Segment operating income(a)	$	81,564		$	223,366		$	421,648
General Corporate expense		(3,133	)		(4,710	)		(9,660	)

Operating income from continuing operations		78,431			218,656			411,988
Interest income		2,668			2,928			3,608
Interest expense		(60,623	)		(62,746	)		(73,160	)

Income from continuing operations before income taxes and equity income	$	20,476		$	158,838		$	342,436

(a): Segment information for prior periods has been reclassified to conform with the current presentation.

Information by Geographic Area(a)

	Revenues from Unaffiliated Customers						Net Property, Plant and Equipment

	Twelve Months Ended December 31,						At December 31
(In thousands)	2010		2009		2008		2010		2009		2008
United States	$	1,010,290	$	1,010,076	$	1,260,967	$	291,470	$	326,952	$	361,071
United Kingdom		420,458		436,039		677,598		141,014		205,681		225,368
All Other		1,607,930		1,544,462		2,029,257		934,489		978,168		896,394

Totals including Corporate	$	3,038,678	$	2,990,577	$	3,967,822	$	1,366,973	$	1,510,801	$	1,482,833

(a): Revenues are attributed to individual countries based on the location of the facility generating the revenue.

Information about Products and Services

	Revenues from Unaffiliated Customers

	Twelve Months Ended December 31,
(In thousands)	2010		2009		2008
Product Group
On-site services to metal producers	$	1,245,045	$	1,084,826	$	1,577,720
Services and equipment for infrastructure construction and industrial maintenance		1,031,807		1,159,200		1,540,258
Railway track maintenance services and equipment		313,262		306,016		277,595
Minerals and recycling technologies		148,749		104,028		127,140
Heat exchangers		112,170		129,365		174,513
Industrial grating products		76,975		92,903		149,168
Industrial abrasives and roofing granules		67,737		68,244		74,118
Heat transfer products		42,753		45,755		47,070
General Corporate		180		240		240

Consolidated Revenues	$	3,038,678	$	2,990,577	$	3,967,822

Other (Income) and Expenses

12 Months Ended

Dec. 31, 2010

Other (Income) and Expenses

Other (Income) and Expenses

15. Other (Income) and Expenses

During 2010, 2009 and 2008, the Company recorded pre-tax Other (income) and expenses from continuing operations of $86.5 million, $7.6 million and $22.0 million, respectively. The major components of this income statement category are as follows:

	Other (Income) and Expenses

(In thousands)	2010			2009			2008
Net gains	$	(7,792	)	$	(8,047	)	$	(15,923	)
Contingent consideration adjustments		(10,620	)		—			—
Employee termination benefits costs		24,816			10,931			19,027
Costs to exit activities		34,384			4,297			5,269
Product line rationalization		34,302			—			—
Impaired asset write-downs		9,966			1,494			12,588
Other (income) expense		1,417			(1,114	)		989

Total	$	86,473		$	7,561		$	21,950

Substantially all Other expenses in 2010 were incurred in conjunction with restructuring programs initiated within the Harsco Infrastructure Segment in 2010. See Note 17, "Restructuring Programs," for additional information on these programs.

Net Gains

Net gains are recorded from the sales of redundant properties (primarily land, buildings and related equipment) and non-core assets. In 2010, gains related to assets sold principally in the United States and Western Europe. In 2009, gains related to assets sold principally in the United States, the United Kingdom and Western Europe. In 2008, gains related to assets sold principally in the United States, Australia and the United Kingdom.

	Net Gains

(In thousands)	2010			2009			2008
Harsco Infrastructure Segment	$	(3,253	)	$	(4,641	)	$	(10,399	)
Harsco Metals & Minerals Segment		(3,942	)		(3,406	)		(4,538	)
Harsco Industrial Segment		(597	)		—			(986	)

Total	$	(7,792	)	$	(8,047	)	$	(15,923	)

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

Contingent Consideration Adjustments

The Company consummated acquisitions whereby the purchase price included contingent consideration based on the performance of the acquired businesses during 2010 and 2011. In 2010, the Company's assessment of these performance goals resulted in a $10.6 million reduction to the previously recognized contingent consideration liability in the Harsco Infrastructure Segment. Each quarter until settlement of the contingency, the Company assesses the likelihood that an acquired business will achieve the goals and the resulting fair value of the contingency. As the fair value is evaluated on a quarterly basis, any future adjustments (increases or decreases) will also be included in operating income.

Employee Termination Benefit Costs

Costs 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 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 total amount of employee termination benefit costs incurred during 2010, 2009 and 2008 is presented in the table below. The terminations in 2010 related primarily to the fourth quarter 2010 Harsco Infrastructure Segment restructuring initiative in addition to the restructuring initiatives in the Harsco Metals & Minerals Segment throughout 2010. The terminations occurred globally, primarily in the United Kingdom, Western Europe and North America. The terminations in 2009 related primarily to actions implemented in Western Europe, North America and South America. The terminations in 2008 related primarily to the fourth quarter 2008 restructuring program and occurred globally, primarily in Western Europe and the United States.

	Employee Termination Benefit Costs

(In thousands)	2010		2009		2008
Harsco Infrastructure Segment	$	19,068	$	2,352	$	5,317
Harsco Metals & Minerals Segment		4,684		7,998		12,922
Harsco Rail Segment		578		246		492
Harsco Industrial Segment		486		303		195
Corporate		—		32		101

Total	$	24,816	$	10,931	$	19,027

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 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 the United Kingdom.

Costs to exit activities in 2010 include $8.3 million of withdrawal liabilities to exit certain multi-employer pension plans, based on the latest available information received from the plan administrators and trustees. These withdrawal liabilities are triggered as the Company has ceased, or expects to cease, contributing to multi-employer plans for certain locations as part of the Harsco Infrastructure Segment's restructuring initiatives. A significant number of union employees in the United States are covered by multi-employer pension plans based on obligations arising from collective bargaining 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 Company is only one of several employers participating in each of these plans. A withdrawal liability is recorded when it is probable that a liability exists and the amount can be reasonably estimated from the financial information that is provided by the third-party trustees of the plans pursuant to the Employee Retirement Income Security Act. At times, this financial information may be dated or insufficient to reasonably estimate an accrual at the balance sheet date when the Company has determined it is probable that a liability exists. Consequently, while the Company believes it has sufficient information to reasonably estimate the $8.3 million withdrawal liability, the liability could change when more current information is provided by the plans' trustees.

In 2009, $4.3 million of exit costs were incurred, principally related to relocation costs for Western Europe, North America and Asia-Pacific. In 2008, $5.3 million of exit costs were incurred, principally lease run-out costs and relocation costs for Corporate, and the Harsco Infrastructure and Harsco Metals & Minerals Segments.

	Costs to Exit Activities

(In thousands)	2010			2009		2008
Harsco Infrastructure Segment	$	33,458		$	1,720	$	1,724
Harsco Metals & Minerals Segment		930			2,577		1,092
Harsco Industrial Segment		(4	)		—		5
Corporate		—			—		2,448

Total	$	34,384		$	4,297	$	5,269

Product Line Rationalization

The product rationalization charge of $34.3 million in 2010 represents a write-down of certain rental product lines in the Harsco Infrastructure Segment that are being discontinued as part of a program to streamline and optimize the product offering. This charge is net of estimated salvage value. Salvage values were based on estimates of proceeds to be realized through the sale of this inventory outside the normal course of business.

The program will result in a reduction in the number of product lines offered and is an extension of the Harsco Infrastructure initiative to optimize the operating footprint and reduce the number of operating locations. By streamlining the product offering, the Company anticipates it will improve customer service and inventory turnover to allow for more efficient operations, thereby reducing costs and improving capacity utilization, and eliminate redundancy in its product offering. Customers will be serviced using available alternative systems that will ensure no reduction in the rental capacity of the Company.

Impaired Asset Write-downs

Impairment losses are measured as the amount by which the carrying amount of assets exceeded 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 in the Consolidated Statements of Cash Flows as adjustments to reconcile net income to net cash provided by operating activities.

In 2010, impaired asset write-downs of $10.0 million were recorded principally in the Harsco Infrastructure Segment in the United Kingdom and in the Harsco Metals & Minerals Segment in the United States. The Harsco Infrastructure Segment write-downs in 2010 related primarily to adjustments to realizable value for two lines of business upon transfer to assets held for sale in Other current assets on the Consolidated Balance Sheets, in conjunction with the segment's restructuring initiatives. In 2009, impaired asset write-downs of $1.5 million were recorded principally in the Harsco Metals & Minerals Segment in the United Kingdom. In 2008, impaired asset write-downs of $12.6 million were recorded principally in the Harsco Metals & Minerals Segment due to contract terminations and costs associated wi th existing underperforming contracts. Impaired asset write-downs related to assets principally in Australia, the United Kingdom and the United States.

	Impaired Asset Write-downs

(In thousands)	2010		2009		2008
Harsco Infrastructure Segment	$	8,938	$	30	$	1,353
Harsco Metals & Minerals Segment		1,028		1,464		11,235

Total	$	9,966	$	1,494	$	12,588

Restructuring Programs

12 Months Ended

Dec. 31, 2010

Restructuring Programs

Restructuring Programs

17. Restructuring Programs

2010 Restructuring Programs

As a result of the continued financial and economic downturn, the Company implemented actions throughout 2010 to further reduce its cost structure and close certain facilities. The Harsco Infrastructure and Harsco Metals & Minerals Segments recorded net pre-tax restructuring charges totaling $19.1 million in the twelve months ended December 31, 2010, in the Other expense line of the Consolidated Statements of Income related to these actions. These restructuring actions are expected to be completed over the next 12 months. These actions were in addition to the restructuring plan initiated in the fourth quarter of 2010, which is described below.

Through December 31, 2010, the Company completed workforce reductions related to these actions of 222 employees of a total expected workforce reduction of 249 employees for the Harsco Infrastructure Segment; and reductions of 73 employees of a total expected workforce reduction of 242 employees for the Harsco Metals & Minerals Segment. Remaining workforce reductions and costs to exit activities are targeted for completion during the remainder of 2011.

On December 8, 2010, the Company approved an additional restructuring plan for the Harsco Infrastructure Segment (the "Fourth Quarter 2010 Harsco Infrastructure Program"). This restructuring initiative is in addition to the aforementioned actions undertaken in 2010 as a countermeasure to global economic and financial conditions that were adversely affecting this Segment's end markets. These conditions include factors such as the following:

•

a continued lack of meaningful commercial and multi-family construction activity in various regions of the world served by the Harsco Infrastructure Segment;

•

pricing pressures as customers world-wide continued to seek lower cost solutions; and

•

postponements, deferrals and cancellation of jobs and projects.

This restructuring initiative is part of an ongoing transformation strategy within the Harsco Infrastructure Segment to improve organizational efficiency and enhance profitability and shareholder value by optimizing the Segment as a more streamlined, efficient, cost-effective, disciplined and market-focused global platform. Objectives of the program include balancing short-term profitability goals with long-term strategies to establish a platform upon which the business can grow with limited fixed investment and generate annual operating expense savings to strengthen 2011 and future performance.

Under this restructuring program, the Harsco Infrastructure Segment further reduced its branch structure; consolidated and/or closed administrative office locations; further reduced its global workforce; and rationalized its product lines.

In the fourth quarter of 2010, the Company recorded net pre-tax restructuring charges totaling $84.4 million, including asset write-downs of $8.9 million for the expected sale of non-core products lines in 2011; $34.2 million of product rationalization charges; and severance costs of $12.8 million related to reduced headcount resulting from the branch structure reduction and administrative office consolidation efforts. In addition, the Company incurred costs to exit activities of $28.4 million related to branch structure reduction and administrative office consolidation efforts, including lease run-out costs and costs to relocate equipment. Restructuring costs incurred in the Harsco Infrastructure Segments related to the Q4 2010 Harsco Infrastructure Program were recorded in the Other expense line of the Consolidated Statements o f Income.

A component of the cost to exit activities is $8.3 million of withdrawal liabilities to exit certain multi-employer pension plans, based on the latest available information received from these plans. The withdrawal liabilities are described further in Note 15, "Other (Income) and Expenses."

At December 31, 2010, the Company completed workforce reductions of 217 employees of a total expected workforce reduction of 494 employees related to the Q4 2010 Harsco Infrastructure Program. The remaining workforce reductions and exit activities are targeted for completion during 2011. Total workforce reductions from all 2010 Harsco Infrastructure Segment restructuring programs are 439 of an expected 743.

The restructuring accrual for the Fourth Quarter 2010 Harsco Infrastructure Program at December 31, 2010 and the activity for the three months then ended is as follows:

(In thousands)		Fourth Quarter 2010 Restructuring Program Charges		Non-Cash Charge			Cash Expenditures			Remaining Accrual December 31 2010

Harsco Infrastructure Segment
	Employee termination benefit costs	$	12,770	$	—		$	(3,516	)	$	9,254
	Cost to exit activities		28,382		—			(6,933	)		21,449
	Product rationalization		34,230		(34,230	)		—			—
	Asset write-down		8,928		(8,928	)		—			—
	Other		130		—			(33	)		97

	Total	$	84,440	$	(43,158	)	$	(10,482	)	$	30,800

The majority of the remaining cash expenditures of $30.8 million related to these actions are expected to be paid throughout 2011 and 2012.

2008 Restructuring Program

The 2008 program was designed to improve organizational efficiency and enhance profitability and stockholder value by generating sustainable operating expense savings. Under this program, the Company principally exited certain underperforming contracts with customers, closed certain facilities and reduced the global workforce. Restructuring costs were incurred primarily in the Harsco Metals & Minerals and Harsco Infrastructure Segments and recorded in the Other (income) expense line of the Consolidated Statements of Income. In the fourth quarter of 2008, the Company recorded net pre-tax restructuring and other related charges totaling $36.1 million, including $28.0 million in Other expense, $5.8 million reduction in services revenue, a net $1.5 million related to pension curtailments and $0.8 million of other cos ts.

Through December 31, 2010, the Company has completed substantially all workforce reductions under the 2008 restructuring program totaling 1,429 employees related to this restructuring program.

Exclusive of the Fourth Quarter 2010 Harsco Infrastructure Program, the restructuring accrual at December 31, 2010 and the activity for the twelve months ended by segment is as follows:

(In thousands)		Accrual December 31 2009		2010 Restructuring Program Charges		Adjustments to Previously Recorded Restructuring Charges(a)			Non-Cash Charge			Cash Expenditures			Remaining Accrual December 31 2010

Harsco Infrastructure Segment
	Employee termination benefit costs	$	122	$	6,306	$	169		$	—		$	(5,692	)	$	905
	Cost to exit activities		—		5,139		—			—			(4,726	)		413

Total Harsco Infrastructure Segment			122		11,445		169			—			(10,418	)		1,318

Harsco Metals & Minerals Segment
	Employee termination benefit costs		3,317		4,783		(111	)		—			(5,880	)		2,109
	Cost to exit activities		186		1,893		(87	)		—			(1,128	)		864
	Asset write-down		—		1,028		—			(1,028	)		—			—

Total Harsco Metals & Minerals Segment			3,503		7,704		(198	)		(1,028	)		(7,008	)		2,973

	Total	$	3,625	$	19,149	$	(29	)	$	(1,028	)	$	(17,426	)	$	4,291

(a): Adjustments to previously recorded cost to exit activities resulted from changes in facts and circumstances in the implementation of these activities.

The majority of the remaining cash expenditures of $4.3 million related to these actions are expected to be paid throughout the remainder of 2011.

Two-Year Summary of Quarterly Results (Unaudited)

			2010

(In millions, except per share amounts) Quarterly			First		Second			Third			Fourth
Sales			$	742.4	$	786.5		$	752.4		$	757.4
Gross profit(a)				163.0		196.0			177.7			165.2
Net income (loss) attributable to Harsco Corporation				8.0		29.7			20.2			(51.1	)(c)
Basic earnings (loss) per share attributable to Harsco Corporation common stockholders:
	Continuing operations		$	0.10	$	0.40		$	0.26		$	(0.63	)(c)
	Discontinued operations (b)			—		(0.04	)		(0.01	)		(0.01	)

		Basic earnings (loss) per share attributable to Harsco Corporation common stockholders	$	0.10	$	0.37	(e)	$	0.25		$	(0.63	)(e)

Diluted earnings (loss) per share attributable to Harsco Corporation common stockholders:
	Continuing operations		$	0.10	$	0.40		$	0.26		$	(0.62	)(c)
	Discontinued operations(b)			—		(0.04	)		(0.01	)		(0.01	)

		Diluted earnings (loss) per share attributable to Harsco Corporation common stockholders	$	0.10	$	0.37	(e)	$	0.25		$	(0.63	)

			2009

(In millions, except per share amounts) Quarterly			First			Second			Third			Fourth
Sales			$	696.9		$	777.0		$	744.2		$	772.5
Gross profit(a)				160.0			204.3			189.6			184.5
Net income attributable to Harsco Corporation				18.6			40.6			20.2	(d)		39.4
Basic earnings (loss) per share attributable to Harsco Corporation common stockholders:
	Continuing operations		$	0.25		$	0.52		$	0.40	(d)	$	0.50
	Discontinued operations(b)			(0.02	)		(0.02	)		(0.15	)(b)		(0.01	)

		Basic earnings per share attributable to Harsco Corporation common stockholders	$	0.23		$	0.51	(e)	$	0.25		$	0.49

Diluted earnings (loss) per share attributable to Harsco Corporation common stockholders:
	Continuing operations		$	0.25		$	0.52		$	0.40	(d)	$	0.50
	Discontinued operations(b)			(0.02	)		(0.02	)		(0.15	)(b)		(0.01	)

		Diluted earnings per share attributable to Harsco Corporation common stockholders	$	0.23		$	0.50		$	0.25		$	0.49

(a): Gross profit is defined as Sales 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. In the third quarter of 2009, the Company recorded an after-tax loss of $11.8 million, or $0.15 per basic and diluted share, related to the settlement of working capital adjustment claims and other costs associated with arbitration proceedings.
(c): In the fourth quarter of 2010, the Company incurred an $84.4 million pre-tax restructuring charge, or $0.77 per basic and diluted share, to address the alignment of the Company's Infrastructure business and position it for a return to profitability and future growth.
(d): In the third quarter of 2009, the Company recorded a net non-cash charge of $0.11 per basic and diluted share for adjustments related principally to the improper recording of revenue by one business unit in one country, over a period of approximately three years. Previously issued financial statements were not revised based on the Company's determination that the cumulative effect was not material to the full-year 2009 results or previously issued annual or quarterly financial statements.
(e): Does not total due to rounding.

Common Stock Price and Dividend Information (Unaudited)

	Market Price Per Share

	Market Price Per Share				Dividends Declared Per Share
	High		Low		Dividends Declared Per Share
2010
First Quarter	$	35.31	$	27.96	$	0.2050
Second Quarter		35.14		23.47		0.2050
Third Quarter		27.50		19.89		0.2050
Fourth Quarter		28.93		22.71		0.2050
2009
First Quarter	$	31.65	$	16.90	$	0.2000
Second Quarter		32.07		21.39		0.2000
Third Quarter		36.33		26.69		0.2000
Fourth Quarter		37.65		29.38		0.2050

SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2010

SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS
Continuing Operations
(In thousands)

COLUMN A		COLUMN B		COLUMN C Additions			COLUMN D Additions (Deductions)						COLUMN E

Description		Balance at Beginning of Period		Charged to Cost and Expenses			Due to Currency Translation Adjustments			Other			Balance at End of Period
For the year 2010:
	Allowance for Doubtful Accounts	$	24,495	$	9,962		$	(336	)	$	(13,838	)(a)	$	20,283
	Deferred Tax Assets—Valuation Allowance	$	22,744	$	4,754		$	(347	)	$	2,318		$	29,469
For the year 2009:
	Allowance for Doubtful Accounts	$	27,853	$	9,318		$	694		$	(13,370	)(a)	$	24,495
	Deferred Tax Assets—Valuation Allowance	$	21,459	$	(980	)	$	(75	)	$	2,340		$	22,744
For the year 2008:
	Allowance for Doubtful Accounts	$	25,580	$	12,493		$	(2,666	)	$	(7,554	)(a)	$	27,853
	Deferred Tax Assets—Valuation Allowance	$	15,318	$	241		$	(804	)	$	6,704	(b)	$	21,459

(a): Includes principally the utilization of previously reserved amounts.
(b): Includes principally valuation allowance established against the deferred tax asset related to a net investment hedge.

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2010	Jan. 31, 2011	Jun. 30, 2010
Document and Entity Information
Entity Registrant Name	HARSCO CORP
Entity Central Index Key	0000045876
Document Type	10-K
Document Period End Date	Dec. 31, 2010
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,891,037,000
Entity Common Stock, Shares Outstanding		80,674,774
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY