Accounts Receivable and Inventories

12 Months Ended

Dec. 31, 2019

Accounts Receivable and Inventories [Abstract]

Accounts receivable consist of the following:



(In thousands)	December 31 2019			December 31 2018
Trade accounts receivable	$	323,502		$	251,013
Less: Allowance for doubtful accounts	(13,512		)	(4,586		)
Trade accounts receivable, net	$	309,990		$	246,427
Insurance claim receivable (a)	$	—		$	30,000
Other receivables (b)	$	21,265		$	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 claim receivables and other miscellaneous receivables not included in Trade accounts receivable, net.

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



	Years Ended December 31
(In thousands)	2019		2018		2017
Provision for doubtful accounts related to trade accounts receivable	$	7,507	$	380	$	5,211

The increase in the provision for doubtful accounts for the year ended 2019 primarily resulted from a provision for doubtful accounts in the Harsco Environmental Segment 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. The provision for doubtful accounts for the year ended 2017 relates principally to the write-off of certain pre-administration receivable balances for one of the Company's customers in Australia in the Harsco Environmental Segment.

Inventories consist of the following:



(In thousands)	December 31 2019		December 31 2018
Finished goods	$	14,550	$	11,892
Work-in-process	13,088		20,839
Raw materials and purchased parts	104,488		61,547
Stores and supplies	24,865		21,907
Total inventories	$	156,991	$	116,185
Valued at lower of cost or market:
LIFO basis	$	101,465	$	66,650
FIFO basis	7,473		5,719
Average cost basis	48,053		43,816
Total inventories	$	156,991	$	116,185

Inventories valued on the LIFO basis at both December 31, 2019 and 2018 were approximately $23 million less than the amounts of such inventories valued at current costs. During 2018 and 2017 as a result of reducing certain inventory quantities valued on a LIFO basis, net income (loss) was favorably impacted compared to that which would have been recorded under the FIFO basis of valuation by $0.6 million and $0.4 million, respectively. There was no impact during 2019.

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 for the year ended December 31, 2016. The Company recorded an additional forward loss provision of $1.8 million for the year ended December 31, 2018. At December 31, 2019, the entire remaining estimated forward loss provision of $6.4 million is included in the caption Other current liabilities on the 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.

The Company recognized $23.4 million and $24.2 million of revenues for the contracts with SBB, on an over time basis, utilizing a cost-to-cost method for the years ended December 31, 2019 and 2018, respectively. In addition, for the year ended December 31, 2017 $42.5 million of revenue based on the percentage-of-completion (units-of-delivery) method of accounting, whereby revenues and estimated average costs of the units to be produced under the contracts are recognized as deliveries are made or accepted. The Company has substantially completed the first contract and is approximately 42% complete on the second contract with SBB as of December 31, 2019.