Revenue Recognition

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

The Company recognizes revenues to depict the transfer of promised services and products to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services or products. Service revenues include the service components of the Harsco Metals & Minerals and Harsco Rail Segments. Product revenues include the Harsco Industrial Segment and the product revenues of the Harsco Metals & Minerals and Harsco Rail Segments. See Note 1, Summary of Significant Accounting Policies, Revenue Recognition, for additional information.

A summary of the Company's revenues by primary geographical markets as well as by key product and service groups is as follows:



	Twelve Months Ended
	December 31, 2018
(In thousands)	Harsco Metals & Minerals Segment		Harsco Industrial Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a):
North America	$	302,238	$	354,558	$	205,212	$	74	$	862,082
Western Europe	390,840		—		48,016		—		438,856
Latin America (b)	151,886		20,150		3,977		—		176,013
Asia-Pacific	145,761		—		22,089		—		167,850
Middle East and Africa	50,003		—		—		—		50,003
Eastern Europe	27,576		—		—		—		27,576
Total Revenues (c)	$	1,068,304	$	374,708	$	279,294	$	74	$	1,722,380
Key Product and Service Groups:
On-site services and material logistics, product quality improvement and resource recovery for iron, steel and metals manufacturing; value- added environmental solutions for industrial co-products; as well as aluminum dross and scrap processing systems	$	1,068,304	$	—	$	—	$	—	$	1,068,304
Railway track maintenance services and equipment	—		—		279,294		—		279,294
Air-cooled heat exchangers	—		207,184		—		—		207,184
Industrial grating products	—		127,419		—		—		127,419
Heat transfer products	—		40,105		—		—		40,105
General Corporate	—		—		—		74		74
Total Revenues (c)	$	1,068,304	$	374,708	$	279,294	$	74	$	1,722,380



	Twelve Months Ended
	December 31, 2017
(In thousands)	Harsco Metals & Minerals Segment		Harsco Industrial Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a):
North America	$	274,476	$	273,775	$	196,567	$	143	$	744,961
Western Europe	369,763		—		78,698		—		448,461
Latin America (b)	159,130		21,369		2,827		—		183,326
Asia-Pacific	138,311		4,448		17,907		—		160,666
Middle East and Africa	42,700		—		—		—		42,700
Eastern Europe	26,948		—		—		—		26,948
Total Revenues (c)	$	1,011,328	$	299,592	$	295,999	$	143	$	1,607,062
Key Product and Service Groups:
On-site services and material logistics, product quality improvement and resource recovery for iron, steel and metals manufacturing; value- added environmental solutions for industrial co-products; as well as aluminum dross and scrap processing systems	$	1,011,328	$	—	$	—	$	—	$	1,011,328
Railway track maintenance services and equipment	—		—		295,999		—		295,999
Air-cooled heat exchangers	—		144,955		—		—		144,955
Industrial grating products	—		116,598		—		—		116,598
Heat transfer products	—		38,039		—		—		38,039
General Corporate	—		—		—		143		143
Total Revenues (c)	$	1,011,328	$	299,592	$	295,999	$	143	$	1,607,062



	Twelve Months Ended
	December 31, 2016
(In thousands)	Harsco Metals & Minerals Segment		Harsco Industrial Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a):
North America	$	247,287	$	215,322	$	191,726	$	34	$	654,369
Western Europe	388,336		—		30,270		—		418,606
Latin America (b)	134,071		28,256		2,014		—		164,341
Asia-Pacific	119,873		3,964		13,025		—		136,862
Middle East and Africa	45,659		—		1,072		—		46,731
Eastern Europe	30,314		—		—		—		30,314
Total Revenues (c)	$	965,540	$	247,542	$	238,107	$	34	$	1,451,223
Key Product and Service Groups:
On-site services and material logistics, product quality improvement and resource recovery for iron, steel and metals manufacturing; value- added environmental solutions for industrial co-products; as well as aluminum dross and scrap processing systems	$	965,540	$	—	$	—	$	—	$	965,540
Railway track maintenance services and equipment	—		—		238,107		—		238,107
Air-cooled heat exchangers	—		93,616		—		—		93,616
Industrial grating products	—		115,914		—		—		115,914
Heat transfer products	—		38,012		—		—		38,012
General Corporate	—		—		—		34		34
Total Revenues (c)	$	965,540	$	247,542	$	238,107	$	34	$	1,451,223


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


(b)	Includes Mexico.


(c)	The Company has adopted the new revenue recognition standard utilizing the modified retrospective transition method, including use of practical expedients. Comparative information has not been restated and continues to be reported under U.S. GAAP in effect for those periods. See Note 2, Recently Adopted and Recently Issued Accounting Standards for additional information.

The Company may receive payments in advance of earning revenue, which are treated as Advances on contracts on the Consolidated Balance Sheets. The Company may recognize revenue in advance of being able to contractually invoice the customer, which is treated as Contract assets on the Consolidated Balance Sheets. Contract assets are transferred to Trade accounts receivable, net when right to payment becomes unconditional. Contract assets and Contract liabilities are reported as a net position, on a contract-by-contract basis, at the end of each reporting period. These instances are primarily related to the Harsco Rail Segment and air-cooled heat exchangers business of the Harsco Industrial Segment.

The Company had Contract assets totaling $21.8 million at January 1, 2018 and $24.3 million at December 31, 2018. The increase is due principally to revenue recognized in excess of amounts reclassified to trade accounts receivable, net of approximately $5 million and the Altek acquisition partially offset by a contract termination. The Company had Advances on contracts totaling $64.0 million at January 1, 2018 and $69.0 million at December 31, 2018. The increase is due principally to advances on contracts received in excess of revenue recognized of approximately $2 million as well as the Altek acquisition and foreign currency translation.

At December 31, 2018, the Harsco Metals & Minerals Segment had remaining, fixed, unsatisfied performance obligations, where the expected contract duration exceeds one year totaling $148.1 million. Of this amount, $44.3 million is expected to be fulfilled by December 31, 2019, $39.6 million by December 31, 2020, $24.9 million by December 31, 2021, $24.1 million by December 31, 2022 and the remainder thereafter. These amounts exclude any variable fees, fixed fees subject to indexation and any performance obligations expected to be satisfied within one year.

At December 31, 2018, the Harsco Rail Segment had remaining, fixed, unsatisfied performance obligations, where the expected contract duration exceeds one year totaling $209.8 million. Of this amount, $65.5 million is expected to be fulfilled by December 31, 2019, $70.8 million by December 31, 2020, $50.9 million by December 31, 2021, $18.7 million by December 31, 2022 and the remainder thereafter. These amounts exclude any variable fees, fixed fees subject to indexation and any performance obligations expected to be satisfied within one year.

The Company provides assurance type warranties primarily for product sales in the Harsco Industrial and Harsco Rail Segments. These warranties are typically not priced or negotiated separately (there is no option to separately purchase the warranty) or the warranty does not provide customers with a service in addition to the assurance that the product complies with agreed-upon specifications. Accordingly, such warranties do not represent separate performance obligations. See Note 1, Summary of Significant Accounting Policies for additional information on warranties.

The Company has elected to utilize the following practical expedients on an ongoing basis as part of the adoption:


•	The Company has not adjusted the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers the promised good or services to the customer and when the customer pays for that good or service would be one year or less; and

•

The Company has elected to exclude disclosures related to unsatisfied performance obligations where the related contract has a duration of one year or less; or where the consideration is entirely variable. Accordingly, the Company's disclosure related to unsatisfied performance obligations is limited to the railway track maintenance equipment in the Harsco Rail Segment and the fixed portion of fees related to metals services in the Harsco Metals & Minerals Segment.

Taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Additionally, in certain contracts, the Company facilitates shipping and handling activities after control has transferred to the customer. The Company has elected to record all shipping and handling activities as costs to fulfill a contract. In situations where the shipping and handling costs have not been incurred at the time revenue is recognized, the respective shipping and handling costs are accrued.