Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

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, 2020
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	57,356	$	161,579	$	56,461	$	275,396
Western Europe	82,972		—		16,855		99,827
Latin America (c)	25,108		—		515		25,623
Asia-Pacific	19,894		—		7,880		27,774
Middle East and Africa	14,793		—		—		14,793
Eastern Europe	3,868		—		—		3,868
Total Revenues	$	203,991	$	161,579	$	81,711	$	447,281
Key Product and Service Groups (a):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	174,173	$	—	$	—	$	174,173
Applied products	26,591		—		—		26,591
Environmental systems for aluminum dross and scrap processing	3,227		—		—		3,227
Railway track maintenance equipment	—		—		40,411		40,411
After-market parts and services; safety and diagnostic technology	—		—		32,500		32,500
Railway contracting services	—		—		8,800		8,800
Waste processing, recycling, reuse and transportation solutions	—		161,579		—		161,579
Total Revenues	$	203,991	$	161,579	$	81,711	$	447,281

	Three Months Ended
	June 30, 2019
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		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):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	230,395	$	—	$	—	$	230,395
Applied products	33,686		—		—		33,686
Environmental systems for aluminum dross and scrap processing	5,257		—		—		5,257
Railway track maintenance equipment	—		—		38,960		38,960
After-market parts and services; safety and diagnostic technology	—		—		36,700		36,700
Railway contracting services	—		—		5,900		5,900
Waste processing, recycling, reuse and transportation solutions	—		—		—		—
Total Revenues	$	269,338	$	—	$	81,560	$	350,898

	Six Months Ended
	June 30, 2020
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	127,237	$	240,391	$	110,234	$	477,862
Western Europe	179,289		—		35,019		214,308
Latin America (c)	58,368		—		1,180		59,548
Asia-Pacific	41,890		—		13,748		55,638
Middle East and Africa	30,682		—		—		30,682
Eastern Europe	8,084		—		—		8,084
Total Revenues	$	445,550	$	240,391	$	160,181	$	846,122
Key Product and Service Groups (a):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	381,519	$	—	$	—	$	381,519
Applied products	56,853		—		—		56,853
Environmental systems for aluminum dross and scrap processing	7,178		—		—		7,178
Railway track maintenance equipment	—		—		83,026		83,026
After-market parts and services; safety and diagnostic technology	—		—		63,700		63,700
Railway contracting services	—		—		13,455		13,455
Waste processing, recycling, reuse and transportation solutions	—		240,391		—		240,391
Total Revenues	$	445,550	$	240,391	$	160,181	$	846,122

	Six Months Ended
	June 30, 2019
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		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):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	454,456	$	—	$	—	$	454,456
Applied products	64,076		—		—		64,076
Environmental systems for aluminum dross and scrap processing	12,118		—		—		12,118
Railway track maintenance equipment	—		—		72,568		72,568
After-market parts and services; safety and diagnostic technology	—		—		68,001		68,001
Railway contracting services	—		—		9,581		9,581
Waste processing, recycling, reuse and transportation solutions	—		—		—		—
Total Revenues	$	530,650	$	—	$	150,150	$	680,800

(a) The Company's acquisition of ESOL closed on April 6, 2020 and the Company's acquisition of Clean Earth closed on June 28, 2019. The results of both are included in the Harsco Clean Earth Segment. 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 $59.0 million and $31.2 million at June 30, 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 six months ended June 30, 2020 primarily in the Harsco Rail Segment. The Company had Advances on contracts totaling $98.5 million and $60.3 million at June 30, 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 primarily for the Deutsche Bahn contract in the Harsco Rail Segment. During the three and six months ended June 30, 2020 the Company recognized approximately $16 million and $34 million, respectively, of revenue related to amounts previously included in Advances on contracts. During the three and six months ended June 30, 2019 the Company recognized approximately $19 million and $37 million, respectively, of revenue related to amounts previously included in Advances on contracts.

At June 30, 2020 the Harsco Environmental Segment had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $98.7 million. Of this amount, $33.0 million is expected to be fulfilled by June 30, 2021, $19.6 million by June 30, 2022, $16.3 million by June 30, 2023, $12.8 million by June 30, 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 June 30, 2020 the Harsco Rail Segment had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $360.7 million. Of this amount, $126.0 million is expected to be fulfilled by

June 30, 2021, $121.8 million by June 30, 2022, $55.2 million by June 30, 2023, $46.5 million by June 30, 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., India and Germany.

Summary of revenues by primary geographical markets

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, 2020
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	57,356	$	161,579	$	56,461	$	275,396
Western Europe	82,972		—		16,855		99,827
Latin America (c)	25,108		—		515		25,623
Asia-Pacific	19,894		—		7,880		27,774
Middle East and Africa	14,793		—		—		14,793
Eastern Europe	3,868		—		—		3,868
Total Revenues	$	203,991	$	161,579	$	81,711	$	447,281
Key Product and Service Groups (a):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	174,173	$	—	$	—	$	174,173
Applied products	26,591		—		—		26,591
Environmental systems for aluminum dross and scrap processing	3,227		—		—		3,227
Railway track maintenance equipment	—		—		40,411		40,411
After-market parts and services; safety and diagnostic technology	—		—		32,500		32,500
Railway contracting services	—		—		8,800		8,800
Waste processing, recycling, reuse and transportation solutions	—		161,579		—		161,579
Total Revenues	$	203,991	$	161,579	$	81,711	$	447,281

	Three Months Ended
	June 30, 2019
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		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):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	230,395	$	—	$	—	$	230,395
Applied products	33,686		—		—		33,686
Environmental systems for aluminum dross and scrap processing	5,257		—		—		5,257
Railway track maintenance equipment	—		—		38,960		38,960
After-market parts and services; safety and diagnostic technology	—		—		36,700		36,700
Railway contracting services	—		—		5,900		5,900
Waste processing, recycling, reuse and transportation solutions	—		—		—		—
Total Revenues	$	269,338	$	—	$	81,560	$	350,898

	Six Months Ended
	June 30, 2020
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	127,237	$	240,391	$	110,234	$	477,862
Western Europe	179,289		—		35,019		214,308
Latin America (c)	58,368		—		1,180		59,548
Asia-Pacific	41,890		—		13,748		55,638
Middle East and Africa	30,682		—		—		30,682
Eastern Europe	8,084		—		—		8,084
Total Revenues	$	445,550	$	240,391	$	160,181	$	846,122
Key Product and Service Groups (a):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	381,519	$	—	$	—	$	381,519
Applied products	56,853		—		—		56,853
Environmental systems for aluminum dross and scrap processing	7,178		—		—		7,178
Railway track maintenance equipment	—		—		83,026		83,026
After-market parts and services; safety and diagnostic technology	—		—		63,700		63,700
Railway contracting services	—		—		13,455		13,455
Waste processing, recycling, reuse and transportation solutions	—		240,391		—		240,391
Total Revenues	$	445,550	$	240,391	$	160,181	$	846,122

	Six Months Ended
	June 30, 2019
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		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):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	454,456	$	—	$	—	$	454,456
Applied products	64,076		—		—		64,076
Environmental systems for aluminum dross and scrap processing	12,118		—		—		12,118
Railway track maintenance equipment	—		—		72,568		72,568
After-market parts and services; safety and diagnostic technology	—		—		68,001		68,001
Railway contracting services	—		—		9,581		9,581
Waste processing, recycling, reuse and transportation solutions	—		—		—		—
Total Revenues	$	530,650	$	—	$	150,150	$	680,800

(a) The Company's acquisition of ESOL closed on April 6, 2020 and the Company's acquisition of Clean Earth closed on June 28, 2019. The results of both are included in the Harsco Clean Earth Segment. 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.