HARSCO CORPORATION Condensed Consolidated Statements of Cash Flows The complete financial statements for Harsco Corporation as of December 31, 2014 may be found in the Company’s Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission on March 2, 2015. 13 SUMMARY ANNUAL REPORT 2014 (In thousands) Years ended December 31 2014 2013 2012 Cash flows from operating activities: Net loss $÷(20,297) $(218,188) $(254,101) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 164,588 221,266 251,905 Amortization 11,738 15,775 20,212 Change in fair value to the unit adjustment liability 9,740 966 – Deferred income tax expense (benefit) 7,551 (18,427) (10,708) Equity in (income) loss of unconsolidated entities, net 1,558 (1,548) (564) Dividends from unconsolidated entities – 37 308 Harsco 2011/2012 Restructuring Program non-cash adjustment – – 31,443 Goodwill impairment charge – – 265,038 Loss on disposal of the Harsco Infrastructure Segment 3,865 271,296 – Other, net 39,376 2,735 (27,098) Changes in assets and liabilities, net of acquisitions and dispositions of businesses: Accounts receivable 7,026 (34,504) 22,016 Inventories (19,991) 18,510 2,365 Accounts payable (28,901) 14,319) (37,649) Accrued interest payable 70 (1,836) (319) Accrued compensation 5,699 (9,860) 517 Advances on contracts 92,769 (21,365) (63,923) Harsco Infrastructure Segment 2010 Restructuring Program accrual – (6,788) (5,211) Harsco 2011/2012 Restructuring Program accrual (2,672) (17,705) (7,883) Other assets and liabilities (46,273) (26,428) 12,531 Net cash provided by operating activities 225,846 188,255 198,879 Cash flows from investing activities: Purchases of property, plant and equipment (207,978) (246,147) (265,023) Proceeds from the Infrastructure Transaction 15,699 303,039 – Proceeds from sales of assets 14,976 18,984 49,779 Purchase of businesses, net of cash acquired* (26,336) (2,849) (740) Payment of unit adjustment liability (22,320) (2,123) – Other investing activities, net (2,721) (8,219) (3,284) Net cash provided (used) by investing activities (228,680) 62,685 (219,268) Cash flows from financing activities: Short-term borrowings, net  8,851 (1,901) (43,464) Current maturities and long-term debt: Additions 177,499 316,804 285,850 Reductions  (131,007) (498,600) (184,372) Cash dividends paid on common stock (66,322) (66,211) (66,068) Dividends paid to noncontrolling interests (2,186) (3,381) (2,605) Purchase of noncontrolling interests – (166) – Contributions from noncontrolling interests – 4,825 8,097 Common stock issued — options – 371 725 Common stock acquired for treasury (941) – – Deferred pension underfunding payment to unconsolidated affiliate (7,688) – – Other financing activities, net – (405) (2,709) Net cash used by financing activities (21,794) (248,664) (4,546) Effect of exchange rate changes on cash (6,134) (3,921) (999) Net decrease in cash and cash equivalents (30,762) (1,645) (25,934) Cash and cash equivalents at beginning of period 93,605 95,250 121,184 Cash and cash equivalents at end of period $÷«62,843 $÷«93,605 $÷«95,250 *Purchase of businesses, net of cash acquired Working capital $÷÷(1,107) $««««««««««««– «««$««««««««««««– Property, plant and equipment (330) (2,437) – Goodwill (6,839) – – Intangible assets (17,575) – – Other noncurrent assets and liabilities, net (485) (412) (740) Net cash used to acquire businesses $÷(26,336) $÷÷(2,849) $÷÷÷«(740)