Revenue Recognition

3 Months Ended

Mar. 31, 2020

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
	March 31, 2020
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	69,881	$	78,812	$	53,773	$	—	$	202,466
Western Europe	96,317		—		18,164		—		114,481
Latin America (c)	33,260		—		665		—		33,925
Asia-Pacific	21,996		—		5,868		—		27,864
Middle East and Africa	15,889		—		—		—		15,889
Eastern Europe	4,216		—		—		—		4,216
Total Revenues	$	241,559	$	78,812	$	78,470	$	—	$	398,841
Key Product and Service Groups (a):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	207,346	$	—	$	—	$	—	$	207,346
Applied products	30,262		—		—		—		30,262
Environmental systems for aluminum dross and scrap processing	3,951		—		—		—		3,951
Railway track maintenance equipment	—		—		42,615		—		42,615
After-market parts and services; safety and diagnostic technology	—		—		31,200		—		31,200
Railway contracting services	—		—		4,655		—		4,655
Waste processing and reuse solutions	—		78,812		—		—		78,812
Total Revenues	$	241,559	$	78,812	$	78,470	$	—	$	398,841



	Three Months Ended
	March 31, 2019
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	73,349	$	—	$	50,365	$	—	$	123,714
Western Europe	98,221		—		10,013		—		108,234
Latin America (c)	36,991		—		591		—		37,582
Asia-Pacific	34,138		—		7,621		—		41,759
Middle East and Africa	13,915		—		—		—		13,915
Eastern Europe	4,698		—		—		—		4,698
Total Revenues	$	261,312	$	—	$	68,590	$	—	$	329,902

Key Product and Service Groups (a):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	224,061	$	—	$	—	$	—	$	224,061
Applied products	30,390		—		—		—		30,390
Environmental systems for aluminum dross and scrap processing	6,861		—		—		—		6,861
Railway track maintenance equipment	—		—		33,608		—		33,608
After-market parts and services; safety and diagnostic technology	—		—		31,301		—		31,301
Railway contracting services	—		—		3,681		—		3,681
Waste processing and reuse solutions	—		—		—		—		—
Total Revenues	$	261,312	$	—	$	68,590	$	—	$	329,902


(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 $50.5 million and $31.2 million at March 31, 2020 and December 31, 2019, respectively. The increase is due principally to recognition of additional contract assets in excess of contract assets transferred to accounts receivable during the three months ended March 31, 2020 primarily in the Harsco Rail Segment. The Company had Advances on contracts totaling $101.6 million and $60.3 million at March 31, 2020 and December 31, 2019, respectively. The increase is due principally to the receipt of new advances on contracts in excess of recognition of revenue for the Deutsche Bahn contract in the Harsco Rail Segment. During the three months ended March 31, 2020 and 2019 the Company recognized approximately $18 million and approximately $17 million, respectively, of revenue related to amounts previously included in Advances on contracts.

At March 31, 2020 the Harsco Environmental Segment had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $98.1 million. Of this amount, $36.1 million is expected to be fulfilled by March 31, 2021, $17.9 million by March 31, 2022, $15.7 million by March 31, 2023, $11.6 million by March 31, 2024 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, 2019 is primarily due to the renegotiation of a contract with a customer in the U.K. who had entered into administration.

At March 31, 2020 the Harsco Rail Segment had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $331.6 million. Of this amount, $111.3 million is expected to be fulfilled by

March 31, 2021, $94.6 million by March 31, 2022, $65.4 million by March 31, 2023, $49.8 million by March 31, 2024 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, 2019 is primarily attributable to new contract signings in U.S. and India.