Revenue Recognition

6 Months Ended

Jun. 30, 2019

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 Harsco Clean Earth Segment and the service components of the Harsco Environmental and Harsco Rail Segments. Product revenues include portions of the Harsco Environmental and Harsco Rail Segments.

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



	Three Months Ended
	June 30, 2019
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	78,112	$	—	$	65,278	$	—	$	143,390
Western Europe	98,478		—		10,538		—		109,016
Latin America (c)	36,272		—		773		—		37,045
Asia-Pacific	35,779		—		4,971		—		40,750
Middle East and Africa	15,742		—		—		—		15,742
Eastern Europe	4,955		—		—		—		4,955
Total Revenues	$	269,338	$	—	$	81,560	$	—	$	350,898
Key Product and Service Groups (a):
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	$	269,338	$	—	$	—	$	—	$	269,338
Environmental solutions for contaminated materials, hazardous waste and dredged materials	—		—		—		—		—
Railway track maintenance services and equipment	—		—		81,560		—		81,560
Total Revenues	$	269,338	$	—	$	81,560	$	—	$	350,898



	Three Months Ended
	June 30, 2018
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	79,862	$	—	$	47,547	$	35	$	127,444
Western Europe	97,410		—		13,041		—		110,451
Latin America (c)	37,388		—		1,331		—		38,719
Asia-Pacific	37,788		—		5,633		—		43,421
Middle East and Africa	12,150		—		—		—		12,150
Eastern Europe	7,722		—		—		—		7,722
Total Revenues	$	272,320	$	—	$	67,552	$	35	$	339,907
Key Product and Service Groups (a):
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	$	272,320	$	—	$	—	$	—	$	272,320
Environmental solutions for contaminated materials, hazardous waste and dredged materials	—		—		—		—		—
Railway track maintenance services and equipment	—		—		67,552		—		67,552
General Corporate	—		—		—		35		35
Total Revenues	$	272,320	$	—	$	67,552	$	35	$	339,907



	Six Months Ended
	June 30, 2019
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	151,461	$	—	$	115,643	$	—	$	267,104
Western Europe	196,699		—		20,551		—		217,250
Latin America (c)	73,263		—		1,364		—		74,627
Asia-Pacific	69,917		—		12,592		—		82,509
Middle East and Africa	29,657		—		—		—		29,657
Eastern Europe	9,653		—		—		—		9,653
Total Revenues	$	530,650	$	—	$	150,150	$	—	$	680,800
Key Product and Service Groups (a):
On-site services and material logistics, product quality improvement and resource recovery for iron, steel and metals manufacturing; as well as value- added environmental solutions for industrial co-products	$	530,650	$	—	$	—	$	—	$	530,650
Environmental solutions for contaminated materials, hazardous waste and dredged materials	—		—		—		—		—
Railway track maintenance services and equipment	—		—		150,150		—		150,150
Total Revenues	$	530,650	$	—	$	150,150	$	—	$	680,800



	Six Months Ended
	June 30, 2018
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	150,927	$	—	$	87,952	$	74	$	238,953
Western Europe	194,331		—		27,761		—		222,092
Latin America (c)	78,846		—		2,164		—		81,010
Asia-Pacific	74,009		—		9,353		—		83,362
Middle East and Africa	23,703		—		—		—		23,703
Eastern Europe	15,227		—		—		—		15,227
Total Revenues	$	537,043	$	—	$	127,230	$	74	$	664,347
Key Product and Service Groups (a):
On-site services and material logistics, product quality improvement and resource recovery for iron, steel and metals manufacturing; as well as value- added environmental solutions for industrial co-products	$	537,043	$	—	$	—	$	—	$	537,043
Environmental solutions for contaminated materials, hazardous waste and dredged materials	—		—		—		—		—
Railway track maintenance services and equipment	—		—		127,230		—		127,230
General Corporate	—		—		—		74		74
Total Revenues	$	537,043	$	—	$	127,230	$	74	$	664,347

(a)

The Company's acquisition of Clean Earth closed on June 28, 2019. Revenues and operating income for the three and six months ended June 30, 2019 for the Harsco Clean Earth Segment are immaterial. The operating results of the former Harsco Industrial Segment have been reflected as discontinued operations in the Company's Condensed Consolidated Statement of Operations for all periods presented. See Note 3, Acquisitions and Dispositions, for additional details.


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


(c)	Includes Mexico.

The Company may receive payments in advance of earning revenue, which are treated as Advances on contracts on the Company's Condensed 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 Company's Condensed 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.

The Company had Contract assets totaling $8.2 million and $12.1 million at June 30, 2019 and December 31, 2018, respectively. The decrease is due principally to the transfer of contract assets to accounts receivable in excess of additional contract assets recognized during the six months ended June 30, 2019, primarily in the Harsco Rail Segment. The Company had Advances on contracts totaling $55.4 million and $67.1 million at June 30, 2019 and December 31, 2018, respectively. The decrease is due principally to the recognition of revenue on previously received advances on contracts in excess of receipts of new advances on contracts during the period, primarily in the Harsco Rail Segment. During the three and six months ended June 30, 2019, the Company recognized approximately $19 million and approximately $37 million of revenue related to amounts previously included in Advances on contracts.

At June 30, 2019, the Harsco Environmental Segment had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $124.2 million. Of this amount, $42.6 million is expected to be fulfilled by June 30, 2020, $31.1 million by June 30, 2021, $24.2 million by June 30, 2022, $21.3 million by June 30, 2023 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 decrease from December 31, 2018 is primarily due to changes in foreign currency exchange rates.

At June 30, 2019, the Harsco Rail Segment had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $202.7 million. Of this amount, $93.3 million is expected to be fulfilled by

June 30, 2020, $61.9 million by June 30, 2021, $34.4 million by June 30, 2022, $13.1 million by June 30, 2023. These amounts exclude any variable fees, fixed fees subject to indexation and any performance obligations expected to be satisfied within one year.