Accounts Receivable and Inventories

9 Months Ended

Sep. 30, 2019

Accounts receivable consist of the following:



(In thousands)	September 30 2019			December 31 2018
Trade accounts receivable	$	322,201		$	251,013
Less: Allowance for doubtful accounts	(11,539		)	(4,586		)
Trade accounts receivable, net	$	310,662		$	246,427
Insurance claim receivable (a)	$	195,000		$	30,000
Other receivables (b)	$	24,343		$	23,770


(a)	Relates to the Lima Refinery litigation. See Note 11, Commitments and Contingencies, for additional information.


(b)	Other receivables include, employee receivables, tax claims and other miscellaneous items not included in Trade accounts receivable, net.

The provision (benefit) for doubtful accounts related to trade accounts receivable was as follows:



	Three Months Ended				Nine Months Ended
	September 30				September 30
(In thousands)	2019		2018		2019		2018
Provision (benefit) for doubtful accounts related to trade accounts receivable (c)	$	1,116	$	12	$	6,539	$	(196	)

(c)

The increase in the provision for doubtful accounts primarily resulted from a $0.8 million and $6.2 million provision for doubtful accounts in the Harsco Environmental Segment recorded in the three months and nine months ended September 30, 2019, respectively, related to a customer in the U.K. entering administration. The Company continues to provide services to the customer and continues to collect on post-administration invoices timely while the customer seeks a buyer for their operations. Depending on the outcome of any potential transactions, there could be an impact on the Company's results of operations, cash flows and asset valuations in the future, which may be material in any one period.

Inventories consist of the following:



(In thousands)	September 30 2019		December 31 2018
Finished goods	$	13,499	$	11,892
Work-in-process	12,394		20,839
Raw materials and purchased parts	99,394		61,547
Stores and supplies	24,697		21,907
Total inventories	$	149,984	$	116,185

During 2016, the Company recognized an initial estimated forward loss provision related to the contracts with the federal railway system of Switzerland ("SBB") of $45.1 million. The Company recorded an additional forward loss provision of $1.8 million during 2018. At September 30, 2019, the entire remaining estimated forward loss provision of $6.4 million is included as Other current liabilities on the Company's Condensed Consolidated Balance Sheets. The estimated forward loss provision represents the Company's best estimate based on currently available information. It is possible that the Company's overall estimate of costs to complete these contracts may increase, which would result in an additional estimated forward loss provision at such time, but the Company is unable to estimate any further possible loss or range of loss at this time. Any adjustment to the cost estimates would be recorded when new information becomes available and could have a material impact on the Company’s results of operations in that period.

The Company recognized $5.7 million and $5.0 million of revenues for the contracts with SBB at zero margin, on an over time basis, utilizing a cost-to-cost method for the three months ended September 30, 2019 and 2018, respectively; and $16.4 million and $20.4 million for the nine months ended September 30, 2019 and 2018, respectively. For the three and nine months ended

September 30, 2019 and 2018, consolidated product revenue gross margins were not significantly impacted by the revenue recognized under the SBB contracts. The Company has substantially completed the first contract and is approximately 37% complete on the second contract with SBB as of September 30, 2019.