Revenue Recognition

9 Months Ended

Sep. 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
	September 30, 2019
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	78,076	$	87,639	$	56,923	$	—	$	222,638
Western Europe	93,426		—		10,409		—		103,835
Latin America (c)	35,127		—		551		—		35,678
Asia-Pacific	34,529		—		6,750		—		41,279
Middle East and Africa	15,302		—		—		—		15,302
Eastern Europe	4,423		—		—		—		4,423
Total Revenues	$	260,883	$	87,639	$	74,633	$	—	$	423,155
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	$	260,883	$	—	$	—	$	—	$	260,883
Specialty waste processing and beneficial reuse solutions for hazardous wastes, contaminated materials and dredged volumes	—		87,639		—		—		87,639
Railway track maintenance equipment; after-market parts; safety and diagnostic technology and contracting services	—		—		74,633		—		74,633
Total Revenues	$	260,883	$	87,639	$	74,633	$	—	$	423,155



	Three Months Ended
	September 30, 2018
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	78,844	$	—	$	62,823	$	—	$	141,667
Western Europe	97,411		—		10,720		—		108,131
Latin America (c)	36,165		—		1,130		—		37,295
Asia-Pacific	36,846		—		8,009		—		44,855
Middle East and Africa	12,370		—		—		—		12,370
Eastern Europe	7,245		—		—		—		7,245
Total Revenues	$	268,881	$	—	$	82,682	$	—	$	351,563

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	$	268,881	$	—	$	—	$	—	$	268,881
Specialty waste processing and beneficial reuse solutions for hazardous wastes, contaminated materials and dredged volumes	—		—		—		—		—
Railway track maintenance equipment; after-market parts; safety and diagnostic technology and contracting services	—		—		82,682		—		82,682
General Corporate	—		—		—		—		—
Total Revenues	$	268,881	$	—	$	82,682	$	—	$	351,563



	Nine Months Ended
	September 30, 2019
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	229,537	$	87,639	$	172,566	$	—	$	489,742
Western Europe	290,125		—		30,960		—		321,085
Latin America (c)	108,390		—		1,915		—		110,305
Asia-Pacific	104,446		—		19,342		—		123,788
Middle East and Africa	44,959		—		—		—		44,959
Eastern Europe	14,076		—		—		—		14,076
Total Revenues	$	791,533	$	87,639	$	224,783	$	—	$	1,103,955
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	$	791,533	$	—	$	—	$	—	$	791,533
Specialty waste processing and beneficial reuse solutions for hazardous wastes, contaminated materials and dredged volumes	—		87,639		—		—		87,639
Railway track maintenance equipment; after-market parts; safety and diagnostic technology and contracting services	—		—		224,783		—		224,783
Total Revenues	$	791,533	$	87,639	$	224,783	$	—	$	1,103,955



	Nine Months Ended
	September 30, 2018
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	229,771	$	—	$	150,775	$	74	$	380,620
Western Europe	291,742		—		38,481		—		330,223
Latin America (c)	115,011		—		3,294		—		118,305
Asia-Pacific	110,855		—		17,362		—		128,217
Middle East and Africa	36,073		—		—		—		36,073
Eastern Europe	22,472		—		—		—		22,472
Total Revenues	$	805,924	$	—	$	209,912	$	74	$	1,015,910
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	$	805,924	$	—	$	—	$	—	$	805,924
Specialty waste processing and beneficial reuse solutions for hazardous wastes, contaminated materials and dredged volumes	—		—		—		—		—
Railway track maintenance equipment; after-market parts; safety and diagnostic technology and contracting services	—		—		209,912		—		209,912
General Corporate	—		—		—		74		74
Total Revenues	$	805,924	$	—	$	209,912	$	74	$	1,015,910


(a)	The Company's acquisition of Clean Earth closed on June 28, 2019. 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 $13.7 million and $12.1 million at September 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 nine months ended September 30, 2019, primarily in the Harsco Rail Segment. The Company had Advances on contracts totaling $47.2 million and $67.1 million at September 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 nine months ended September 30, 2019, the Company recognized approximately $17 million and approximately $53 million of revenue related to amounts previously included in Advances on contracts. Additionally, during the three months ended September 30, 2019, the Company recognized revenue of $0.8 million, in the Harsco Rail Segment, related to performance obligations partially satisfied in prior periods.

At September 30, 2019, the Harsco Environmental Segment had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $131.7 million. Of this amount, $43.1 million is expected to be fulfilled by September 30, 2020, $34.8 million by September 30, 2021, $32.2 million by September 30, 2022, $16.3 million by September 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 increase from December 31, 2018 is primarily due to the addition of new contracts.

At September 30, 2019, the Harsco Rail Segment had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $300.9 million. Of this amount, $93.1 million is expected to be fulfilled by

September 30, 2020, $47.9 million by September 30, 2021, $65.1 million by September 30, 2022, $53.9 million by September 30, 2023, $32.3 million by September 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 increase from December 31, 2018 is primarily attributable to a new contract with Europe's largest railway infrastructure manager, DB

Netz AG.