10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to          

Commission File Number 001-03970

HARSCO CORPORATION

(Exact name of registrant as specified in its charter) 

Delaware			23-1483991
(State or other jurisdiction of incorporation or organization)			(I.R.S. employer identification number)
Two Logan Square 100-120 North 18th Street, 17th Floor,	Philadelphia,	Pennsylvania	19103
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code  267-857-8715 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $1.25 per share	HSC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit).   Yes ☒  NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES ☐  NO ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding at April 28, 2023
Common stock, par value $1.25 per share	79,738,373

HARSCO CORPORATION

FORM 10-Q

INDEX

		Page
PART I — FINANCIAL INFORMATION
Item 1.	Financial Statements	4
	Condensed Consolidated Balance Sheets (Unaudited)	4
	Condensed Consolidated Statements of Operations (Unaudited)	5
	Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows (Unaudited)	7
	Condensed Consolidated Statements of Equity (Unaudited)	8
	Notes to Condensed Consolidated Financial Statements (Unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35
PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 6.	Exhibits	37
SIGNATURES		38

2

Glossary of Defined Terms

Unless the context requires otherwise, "Harsco," the "Company," "we," "our," or "us" refers to Harsco Corporation on a consolidated basis. The Company also uses several other terms in this Quarterly Report on Form 10-Q, which are further defined below:

Term	Description
AOCI	Accumulated Other Comprehensive Income (Loss)
AR Facility	Trade receivables securitization facility
ASU	Financial Accounting Standards Board Accounting Standards Update
CE	Harsco Clean Earth Segment
CERCLA	Comprehensive Environmental Response, Compensation, and Liability Act of 1980
Consolidated Adjusted EBITDA	EBITDA as calculated in accordance with the Company's Credit Agreement
COVID-19	The COVID-19 coronavirus pandemic
Credit Agreement	Credit Agreement governing the Senior Secured Credit Facilities
DEA	United States Drug Enforcement Administration
Deutsche Bahn	National railway company in Germany
DTSC	California Department of Toxic Substances Control
EBITDA	Earnings before interest, tax, depreciation and amortization
ESOL	Stericycle Environmental Solutions business
FASB	Financial Accounting Standards Board
HE	Harsco Environmental Segment
ICMS	Type of value-added tax in Brazil
IKG	The former Harsco Industrial IKG business
ISDA	International Swaps and Derivatives Association
LIBOR	London Interbank Offered Rates
Network Rail	Infrastructure manager for most of the railway in the U.K.
New Term Loan	$500 million term loan raised in March 2021 under the Senior Secured Credit Facilities, maturing on March 10, 2028
OCI	Other Comprehensive Income (Loss)
PA DEP	Pennsylvania Department of Environmental Protection
Rail	The former Harsco Rail Segment
Revolving Credit Facility	$700 million multi-year revolving credit facility under the Senior Secured Credit Facilities
ROU	Right of use
SBB	Federal railway system of Switzerland
SCE	Supreme Council for Environment in Bahrain
SEC	Securities and Exchange Commission
Senior Notes	5.75% Notes due July 31, 2027
Senior Secured Credit Facilities	Primary source of borrowings comprised of the New Term Loan and the Revolving Credit Facility
SOFR	Secured Overnight Financing Rate
SPE	The Company's wholly-owned bankruptcy-remote special purpose entity, which is used in connection with the AR Facility
SPRA	State Revenue Authorities from the State of São Paulo, Brazil
TSDF	Treatment, storage, and disposal facility permits issued under the Resource Conservation and Recovery Act
U.S. GAAP	Accounting principles generally accepted in the U.S.

3

PART I — FINANCIAL INFORMATION

ITEM 1.      FINANCIAL STATEMENTS

HARSCO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)	March 31 2023		December 31 2022
ASSETS
Current assets:
Cash and cash equivalents	$	91,759	$	81,332
Restricted cash	4,477		3,762
Trade accounts receivable, net	281,777		264,428
Other receivables	25,832		25,379
Inventories	84,705		81,375
Prepaid expenses	24,878		30,583
Current portion of assets held-for-sale	264,051		266,335
Other current assets	15,181		14,541
Total current assets	792,660		767,735
Property, plant and equipment, net	665,191		656,875
Right-of-use assets, net	100,199		101,253
Goodwill	763,013		759,253
Intangible assets, net	345,595		352,160
Deferred income tax assets	18,422		17,489
Assets held-for-sale	69,554		70,105
Other assets	70,360		65,984
Total assets	$	2,824,994	$	2,790,854
LIABILITIES
Current liabilities:
Short-term borrowings	$	2,142	$	7,751
Current maturities of long-term debt	13,245		11,994
Accounts payable	225,314		205,577
Accrued compensation	50,193		43,595
Income taxes payable	3,987		3,640
Current portion of operating lease liabilities	26,104		25,521
Current portion of liabilities of assets held-for-sale	159,069		159,004
Other current liabilities	138,224		140,199
Total current liabilities	618,278		597,281
Long-term debt	1,346,206		1,336,995
Retirement plan liabilities	48,013		46,601
Operating lease liabilities	74,149		75,246
Liabilities of assets held-for-sale	8,942		9,463
Environmental liabilities	26,481		26,880
Deferred tax liabilities	28,426		30,069
Other liabilities	50,547		45,277
Total liabilities	2,201,042		2,167,812
COMMITMENTS AND CONTINGENCIES
HARSCO CORPORATION STOCKHOLDERS’ EQUITY
Common stock	145,843		145,448
Additional paid-in capital	229,218		225,759
Accumulated other comprehensive loss	(560,842)		(567,636)
Retained earnings	1,604,916		1,614,441
Treasury stock	(849,678)		(848,570)
Total Harsco Corporation stockholders’ equity	569,457		569,442
Noncontrolling interests	54,495		53,600
Total equity	623,952		623,042
Total liabilities and equity	$	2,824,994	$	2,790,854

See accompanying notes to unaudited condensed consolidated financial statements.

4

HARSCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended
	March 31
(In thousands, except per share amounts)	2023		2022
Revenues from continuing operations:
Revenues	495,653		452,797
Costs and expenses from continuing operations:
Cost of sales	400,688		377,019
Selling, general and administrative expenses	71,935		69,153
Research and development expenses	176		56
Other (income) expenses, net	(6,151)		(1,179)
Total costs and expenses	466,648		445,049
Operating income (loss) from continuing operations	29,005		7,748
Interest income	1,455		644
Interest expense	(24,328)		(15,092)
Facility fees and debt-related income (expense)	(2,363)		(532)
Defined benefit pension income (expense)	(5,335)		2,410
Income (loss) from continuing operations before income taxes and equity income	(1,566)		(4,822)
Income tax benefit (expense) from continuing operations	(6,923)		(1,221)
Equity income (loss) of unconsolidated entities, net	(133)		(131)
Income (loss) from continuing operations	(8,622)		(6,174)
Discontinued operations:
Income (loss) from discontinued businesses	619		(39,097)
Income tax benefit (expense) from discontinued businesses	(587)		6,591
Income (loss) from discontinued operations, net of tax	32		(32,506)
Net income (loss)	(8,590)		(38,680)
Less: Net (income) loss attributable to noncontrolling interests	(935)		(1,159)
Net income (loss) attributable to Harsco Corporation	$	(9,525)	$	(39,839)
Amounts attributable to Harsco Corporation common stockholders:
Income (loss) from continuing operations, net of tax	$	(9,557)	$	(7,333)
Income (loss) from discontinued operations, net of tax	32		(32,506)
Net income (loss) attributable to Harsco Corporation common stockholders	$	(9,525)	$	(39,839)
Weighted-average shares of common stock outstanding	79,633		79,363
Basic earnings (loss) per common share attributable to Harsco Corporation common stockholders:
Continuing operations	$	(0.12)	$	(0.09)
Discontinued operations	0.00		(0.41)
Basic earnings (loss) per share attributable to Harsco Corporation common stockholders	$	(0.12)	$	(0.50)
Diluted weighted-average shares of common stock outstanding	79,633		79,363
Diluted earnings (loss) per common share attributable to Harsco Corporation common stockholders:
Continuing operations	$	(0.12)	$	(0.09)
Discontinued operations	0.00		(0.41)
Diluted earnings (loss) per share attributable to Harsco Corporation common stockholders	$	(0.12)	$	(0.50)

See accompanying notes to unaudited condensed consolidated financial statements.

5

HARSCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

	Three Months Ended
	March 31
(In thousands)	2023		2022
Net income (loss)	$	(8,590)	$	(38,680)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of deferred income taxes of $1,472 and $(1,838) in 2023 and 2022, respectively	12,446		(2,847)
Net gain (loss) on cash flow hedging instruments, net of deferred income taxes of $847 and $(330) in 2023 and 2022, respectively	(2,560)		1,140
Pension liability adjustments, net of deferred income taxes of $(418) and $(352) in 2023 and 2022, respectively	(2,735)		13,718
Unrealized gain (loss) on marketable securities, net of deferred income taxes of $— in 2023 and 2022	1		(3)
Total other comprehensive income (loss)	7,152		12,008
Total comprehensive income (loss)	(1,438)		(26,672)
Less: Comprehensive (income) loss attributable to noncontrolling interests	(1,293)		(677)
Comprehensive income (loss) attributable to Harsco Corporation	$	(2,731)	$	(27,349)

See accompanying notes to unaudited condensed consolidated financial statements.

6

HARSCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended March 31
(In thousands)	2023		2022
Cash flows from operating activities:
Net income (loss)	$	(8,590)	$	(38,680)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	33,039		33,604
Amortization	7,965		8,586
Deferred income tax (benefit) expense	(56)		(4,275)
Equity (income) loss of unconsolidated entities, net	133		131
Dividends from unconsolidated entities	—		178
Other, net	1,009		259
Changes in assets and liabilities, net of acquisitions and dispositions of businesses:
Accounts receivable	(14,533)		(15,364)
Income tax refunds receivable, reimbursable to seller	—		7,687
Inventories	(8,534)		(4,610)
Contract assets	11,698		4,843
Right-of-use assets	7,842		7,076
Accounts payable	17,735		1,655
Accrued interest payable	(6,998)		(7,393)
Accrued compensation	7,343		(5,692)
Advances on contracts	(5,591)		(7,808)
Operating lease liabilities	(7,202)		(7,063)
Retirement plan liabilities, net	814		(14,519)
Other assets and liabilities	838		7,070
Net cash provided (used) by operating activities	36,912		(34,315)
Cash flows from investing activities:
Purchases of property, plant and equipment	(22,146)		(32,958)
Proceeds from sales of assets	823		5,976
Expenditures for intangible assets	(36)		(54)
Net proceeds (payments) from settlement of foreign currency forward exchange contracts	(1,212)		1,061
Payments for settlements of interest rate swaps	—		(1,062)
Other investing activities, net	32		124
Net cash used by investing activities	(22,539)		(26,913)
Cash flows from financing activities:
Short-term borrowings, net	(3,029)		2,051
Current maturities and long-term debt:
Additions	59,000		72,005
Reductions	(57,200)		(2,566)
Stock-based compensation - Employee taxes paid	(930)		(1,377)
Payment of contingent consideration	—		(6,915)
Net cash (used) provided by financing activities	(2,159)		63,198
Effect of exchange rate changes on cash and cash equivalents, including restricted cash	(1,072)		455
Net increase in cash and cash equivalents, including restricted cash	11,142		2,425
Cash and cash equivalents, including restricted cash, at beginning of period	85,094		87,128
Cash and cash equivalents, including restricted cash, at end of period	$	96,236	$	89,553
Supplementary cash flow information:
Change in accrual for purchases of property, plant and equipment included in accounts payable	$	7,524	$	(745)

See accompanying notes to unaudited condensed consolidated financial statements.

7

HARSCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)

	Harsco Corporation Stockholders’ Equity
	Common Stock				Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests
(In thousands, except share  amounts)	Issued		Treasury										Total
Balances, December 31, 2021	$	144,883	$	(846,622)	$	215,528	$	1,794,510	$	(560,139)	$	57,610	$	805,770
Net income							(39,839)				1,159		(38,680)
Total other comprehensive income (loss), net of deferred income taxes of $(2,520)									12,490		(482)		12,008
Vesting of restricted stock units and other stock grants, net 176,253 shares	378		(1,632)		(378)								(1,632)
Amortization of unearned portion of stock-based compensation, net of forfeitures					3,629								3,629
Balances, March 31, 2022	$	145,261	$	(848,254)	$	218,779	$	1,754,671	$	(547,649)	$	58,287	$	781,095

	Harsco Corporation Stockholders’ Equity
(In thousands, except share amounts)	Common Stock				Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests
	Issued		Treasury										Total
Balances, December 31, 2022	$	145,448	$	(848,570)	$	225,759	$	1,614,441	$	(567,636)	$	53,600	$	623,042
Net income (loss)							(9,525)				935		(8,590)
Total other comprehensive income (loss), net of deferred income taxes of $1,901									6,794		358		7,152
Purchase of subsidiary shares from noncontrolling interest					398						(398)		—
Vesting of restricted stock units and other stock grants, net 177,574 shares	395		(1,108)		(395)								(1,108)
Amortization of unearned portion of stock-based compensation, net of forfeitures					3,456								3,456
Balances, March 31, 2023	$	145,843	$	(849,678)	$	229,218	$	1,604,916	$	(560,842)	$	54,495	$	623,952

See accompanying notes to unaudited condensed consolidated financial statements.

8

HARSCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1.     Basis of Presentation

The Company has prepared these unaudited condensed consolidated financial statements in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the SEC. Accordingly, the unaudited condensed consolidated financial statements do not include all information and disclosure required by U.S. GAAP for annual financial statements. The December 31, 2022 Condensed Consolidated Balance Sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2022 audited consolidated financial statements.  These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in these unaudited condensed consolidated financial statements.

Liquidity

The Company’s cash flow forecasts, combined with existing cash and cash equivalents and borrowings available under the Senior Secured Credit Facilities, indicate sufficient liquidity to fund the Company’s operations for at least the next twelve months. As such, the Company’s unaudited consolidated financial statements have been prepared on the basis that it will continue as a going concern for a period extending beyond twelve months from the date the unaudited consolidated financial statements are issued. This assessment includes the expected ability to meet required financial covenants and the continued ability to draw down on the Senior Secured Credit Facilities (see Note 9).

Reclassifications

Certain reclassifications have been made to prior year amounts to conform with current year classifications.

2.     Recently Adopted and Recently Issued Accounting Standards

The following accounting standards have been adopted in 2023:

On January 1, 2023, the Company adopted changes issued by the FASB that clarify that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with accounting standards governing revenue from contracts with customers. The adoption of these changes did not have an immediate impact on the Company's consolidated financial statements, but will be applied prospectively to future business combinations.

On January 1, 2023, the Company adopted changes issued by the FASB that require a buyer in a supplier finance program, also referred to as reverse factoring, payables finance, or structured payables arrangements, to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude, by disclosing qualitative and quantitative information about the program. At March 31, 2023, the Company concluded that the adoption of these changes did not have a material impact on the Company's condensed consolidated financial statements or the accompanying notes to the condensed consolidated financial statements.

3. Discontinued Operations

Harsco Rail Segment

The Company is in the process of selling its Rail business with a sale expected to occur in 2023. The intention to sell the business was first announced in the fourth quarter of 2021. The sales process was delayed in 2022 due to certain macroeconomic conditions, including rising interest rates. The former Harsco Rail Segment has historically been a separate reportable segment with primary operations in the United States, Europe and Asia Pacific.

9

The former Harsco Rail Segment's balance sheet positions as of March 31, 2023 and December 31, 2022 are presented as Assets held-for-sale and Liabilities of assets held-for-sale in the Condensed Consolidated Balance Sheets and are summarized as follows:

(in thousands)	March 31 2023		December 31 2022
Trade accounts receivable, net	$	39,743	$	41,049
Other receivables	4,481		4,037
Inventories	111,447		105,256
Current portion of contract assets	73,204		84,848
Other current assets	34,982		30,950
Property, plant and equipment, net	41,919		41,004
Right-of-use assets, net	5,292		5,635
Goodwill	13,026		13,026
Intangible assets, net	2,685		2,746
Deferred income tax assets	5,825		6,887
Other assets	806		807
Total Rail assets included in Assets held-for-sale	$	333,410	$	336,245
Accounts payable	$	56,212	$	49,083
Accrued compensation	2,384		1,211
Current portion of operating lease liabilities	2,649		2,635
Current portion of advances on contracts	37,356		45,037
Other current liabilities	60,468		61,039
Operating lease liabilities	2,800		3,121
Deferred tax liabilities	5,688		5,480
Other liabilities	454		861
Total Rail liabilities included in Liabilities of assets held-for-sale	$	168,011	$	168,467

The results of the former Harsco Rail Segment are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for the three months ended March 31, 2023, and 2022. Certain key selected financial information included in Income (loss) from discontinued operations, net of tax, for the former Harsco Rail Segment is as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Amounts directly attributable to the former Harsco Rail Segment:
Service revenues	$	7,720	$	6,710
Product revenues (a)	57,332		45,113
Cost of services sold	5,626		4,295
Cost of products sold	45,743		72,546
Income (loss) from discontinued businesses	2,751		(35,895)
Additional amounts allocated to the former Harsco Rail Segment:
Selling, general and administrative expenses (b)	$	477	$	1,649

(a) The increase in product revenues and decrease in cost of products sold for 2023 compared with 2022 is due, in part, to liquidated damages and penalties on certain long-term contracts, as discussed below.

(b) The Company includes costs to sell the Rail business in the caption Income (loss) from discontinued businesses in the Condensed Consolidated Statements of Operations.

The Company has retained corporate overhead expenses previously allocated to the former Harsco Rail Segment of $1.0 million for each of the three months ended March 31, 2023, and 2022, as part of Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations.

The Company's former Harsco Rail Segment is currently manufacturing highly-engineered equipment under large long-term fixed-price contracts with SBB, Network Rail, and Deutsche Bahn. As previously disclosed, the Company recognized estimated forward loss provisions in 2022 related to these contracts as additional costs in building the machines and continued supply chain related delays were encountered. No additional such provisions were recognized in 2023.

10

For the Network Rail contracts, the Company encountered supply chain delays in the build of the initial machine, and there were further changes to the production schedule based on the manufacturing experience gained from assembling the first unit during the first quarter of 2022 which had a cascading effect on the delivery schedule of remaining machines. In the first quarter of 2022, the Company recorded additional forward loss provisions of $24.2 million, principally for additional estimated contractual liquidated damages which are recorded as a reduction to revenue. The Company continues to negotiate with Network Rail regarding a reduction to these liquidated damages, which could result in additional favorable or unfavorable adjustments in future periods.

For the Deutsche Bahn contract, in March 2022 a European-based supplier of critical components to the project indicated it would be significantly late on the delivery of these components to the project, which has the impact of delaying the overall delivery schedule for the project. In the first quarter of 2022, the Company recorded an additional $7.4 million estimated forward loss provision due principally to the estimated contractual penalties that would be triggered by this delay and thus recorded as a reduction of revenue. Additionally, this supplier filed for bankruptcy during the second quarter of 2022, although it continues to operate. Should this supplier cease operations, the Company may incur further losses if there are additional costs to change suppliers or an inability to recover the value of prepayments made to the supplier, as well as additional penalties and damages under the contract with Deutsche Bahn in the event of further production delays.

For the second SBB contract, the Company recorded an additional $3.5 million forward estimated loss provision in the first quarter of 2022 due to additional supply chain delays and cost overruns.

The estimated forward loss provisions represent the Company's best estimate based on currently available information. It is possible that the Company's overall estimate of liquidated damages, penalties and costs to complete these contracts may change, which would result in an additional estimated forward loss provision at such time.

As of March 31, 2023, the contracts with Network Rail, Deutsche Bahn and the second contract with SBB are 51%, 36% and 85% complete, respectively. The first contract with SBB has been completed.

The following is selected financial information included on the Condensed Consolidated Statements of Cash Flows attributable to the former Harsco Rail Segment:

	Three Months Ended March 31
(In thousands)	2023	2022
Cash flows from investing activities
Purchases of property, plant and equipment	665	506

4.    Accounts Receivable and Note Receivable

Accounts receivable consist of the following:

(In thousands)	March 31 2023		December 31 2022
Trade accounts receivable	$	290,648	$	272,775
Less: Allowance for expected credit losses	(8,871)		(8,347)
Trade accounts receivable, net	$	281,777	$	264,428
Other receivables (a)	$	25,832	$	25,379

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

The provision for expected credit losses related to trade accounts receivable was as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Provision for expected credit losses related to trade accounts receivable	$	507	$	325

11

At March 31, 2023, $10.6 million of the Company's trade accounts receivable were past due by twelve months or more, with $3.3 million of this amount reserved. There has been a recent increase in aged receivables for certain international customers within the HE segment. Collection of the remaining balance is still ultimately expected.

Accounts Receivable Securitization Facility

In June 2022, the Company and its SPE entered into an AR Facility with PNC Bank, National Association ("PNC") to accelerate cash flows from trade accounts receivable. The AR Facility has a three-year term. The maximum purchase commitment by PNC is $150.0 million.

The total outstanding balance of trade receivables that have been sold and derecognized by the SPE is $150.0 million and $145.0 million as of March 31, 2023 and December 31, 2022, respectively. The SPE owned $82.4 million and $69.7 million of trade receivables as of March 31, 2023 and December 31, 2022, respectively, which is included in the caption Trade accounts receivable, net, on the Condensed Consolidated Balance Sheets. See Note 9, Debt and Credit Agreements, for AR Facility expenses incurred.

The Company received proceeds of $5.0 million from the AR Facility in the first quarter of 2023.

Factoring Arrangements

The Company maintains factoring arrangements with a financial institution to sell certain accounts receivable that are also accounted for as a sale of financial assets. The following table reflects balances for net amounts sold and program capacities for the arrangements:

(In millions)	March 31 2023		December 31 2022
Net amounts sold under factoring arrangements	$	21.7	$	17.3
Program capacities	32.0		31.4

Note Receivable

In January 2020, the Company sold IKG for $85.0 million including cash and a note receivable, subject to post-closing adjustments. The note receivable from the buyer has a face value of $40.0 million, bearing interest at 2.50%, that is paid in kind and matures on January 31, 2027. Any unpaid principal, along with any accrued but unpaid interest is payable at maturity. Prepayment is required in case of a change in control or a percentage of excess cash flow, as defined in the note receivable agreement. Because there are no scheduled payments under the terms of the note receivable, the balance is not classified as current as of March 31, 2023 and December 31, 2022, and is included in the caption Other assets on the Condensed Consolidated Balance Sheet.

(In millions)	March 31 2023		December 31 2022
Note receivable, at amortized cost	$	24.3	$	23.9
Note receivable, fair value	24.8		23.8

5.    Inventories

Inventories consist of the following:

(In thousands)	March 31 2023		December 31 2022
Finished goods	$	12,884	$	11,809
Work-in-process	1,776		2,030
Raw materials and purchased parts	29,270		27,946
Stores and supplies	40,775		39,590
Total inventories	$	84,705	$	81,375

12

6.     Property, Plant and Equipment

Property, plant and equipment consist of the following:

(In thousands)	March 31 2023		December 31 2022
Land	$	71,987	$	72,020
Land improvements	16,843		16,750
Buildings and improvements	219,332		217,926
Machinery and equipment	1,539,171		1,513,238
Uncompleted construction	85,421		84,472
Gross property, plant and equipment	1,932,754		1,904,406
Less: Accumulated depreciation	(1,267,563)		(1,247,531)
Property, plant and equipment, net	$	665,191	$	656,875

In the third quarter of 2020, a customer of HE in China ceased steel making operations at its steel mill site in order to relocate the operations to a new site, as a result of a government mandate to improve environmental conditions of the area. The Company continues to provide services to the same customer at the new site. The net book value of HE's idled equipment associated with the previous location is approximately $18 million. The customer has entered into an agreement with the government where it will receive compensation for the losses the customer has incurred as a result of the forced shutdown. The Company has continued discussions with the customer regarding compensation, which are expected to be protracted. While the customer initially indicated that they will not provide compensation, the Company and the customer continue to discuss. In addition, there may be other avenues of pursuing recovery, including seeking relief directly from the local government. At this point, considering the ongoing discussions with the customer, and other avenues, the Company believes it will recover the book value of its equipment and thus does not believe it has an asset impairment as of March 31, 2023. However, the Company will continue to evaluate changes in facts and circumstances and will record any impairment charge, when and if indicated.

7. Leases

The components of lease expense were as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Finance leases:
Amortization expense	$	1,541	$	978
Interest on lease liabilities	354		183
Operating leases	8,554		8,069
Variable and short-term lease expense	12,086		13,343
Sublease income	(2)		(2)
Total lease expense from continuing operations	$	22,533	$	22,571

As of March 31, 2023, the Company had additional operating leases for vehicles that had not yet commenced with estimated operating lease obligations of approximately $9 million to be recognized upon anticipated lease commencements in the second and third quarters of 2023.

8.     Goodwill and Other Intangible Assets

The Company tests for goodwill impairment annually, or more frequently if indicators of impairment exist, or if a decision is made to dispose of a business.  The Company performs its annual goodwill impairment test as of October 1 and monitors for triggering events on an ongoing basis. During the three months ended March 31, 2023, the Company determined that there were no events or indicators present that would indicate that it was more-likely-than-not that its reporting units' fair values were less than their carrying amounts, which would require a further interim impairment analysis.  However, a continued economic downturn, including continued cost inflation and labor shortages, as well as rising interest rates, could impact the Company's future projected cash flows and discount rates used to estimate fair value, which could result in an impairment charge to any of the Company's reporting units in a future period.

13

9. Debt and Credit Agreements

Long-term debt consists of the following:

(In thousands)	March 31 2023		December 31 2022
Senior Secured Credit Facilities:
New Term Loan	$	491,250	$	492,500
Revolving Credit Facility	375,000		370,000
5.75% Senior Notes	475,000		475,000
Other financing payable (including finance leases) in varying amounts	32,584		26,661
Total debt obligations	1,373,834		1,364,161
Less: deferred financing costs	(14,383)		(15,172)
Total debt obligations, net of deferred financing costs	1,359,451		1,348,989
Less: current maturities of long-term debt	(13,245)		(11,994)
Long-term debt	$	1,346,206	$	1,336,995

At March 31, 2023, the Company was in compliance with its debt covenants under the Senior Secured Credit Facilities, with a total net debt to Consolidated Adjusted EBITDA ratio of 4.94x (below the 5.50x maximum permitted for the quarter ended March 31, 2023) and a total interest coverage ratio of 3.02x (above the 2.75x minimum permitted for the quarter ended March 31, 2023). The Company believes it will continue to maintain compliance with these covenants based on its current outlook. However, the Company's estimates of compliance with these covenants could change in the future with a continued deterioration in economic conditions, higher than forecasted interest rate increases or an inability to successfully execute its plans by quarter to realize increased pricing and to implement cost reduction initiatives that substantially mitigate the impacts of inflation and other factors adversely impacting its realized operating margins.

Facility Fees and Debt-Related Income (Expense)

The components of the Condensed Consolidated Statements of Operations caption Facility fees and debt-related income (expense) were as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Unused debt commitment and amendment fees	$	(12)	$	(532)
Securitization and factoring fees	(2,351)		—
Facility fees and debt-related income (expense)	$	(2,363)	$	(532)

10.  Employee Benefit Plans

	Three Months Ended
	March 31
Defined Benefit Pension Plans Net Periodic Pension Cost (Benefit)	U.S. Plans				International Plans
(In thousands)	2023		2022		2023		2022
Service costs	$	—	$	—	$	307	$	432
Interest costs	2,543		1,429		7,414		4,394
Expected return on plan assets	(1,750)		(2,699)		(7,657)		(10,384)
Recognized prior service costs	—		—		114		120
Recognized actuarial losses	1,151		1,183		3,519		3,544
Defined benefit pension plans net periodic pension cost (benefit)	$	1,944	$	(87)	$	3,697	$	(1,894)

14

	Three Months Ended
Company Contributions	March 31
(In thousands)	2023		2022
Defined benefit pension plans (U.S.)	$	420	$	446
Defined benefit pension plans (International)	4,183		11,357
Multiemployer pension plans	484		457
Defined contribution pension plans	3,229		3,794

The Company's estimate of expected cash contributions to be paid during the remainder of 2023 for the U.S. and international defined benefit pension plans is $1.4 million and $19.7 million, respectively.

11.     Income Taxes 

Income tax expense related to continuing operations for the three months ended March 31, 2023 and March 31, 2022 was $6.9 million and $1.2 million, respectively. Income tax expense increased in 2023 primarily due to improved business performance in the CE segment and the gain on the relocation of an HE site, as well as the increased disallowed interest expense in the U.S. resulting from higher interest expense on the Company's Senior Secured Credit Facilities.

The Company has historically calculated its quarterly tax provision based on its best estimate of the full year tax rate applicable to the quarter. In the first quarter 2023, due to the insignificant amount of pre-tax book loss relative to the size of permanent book-tax differences and a varying net income/(loss) pattern projected for the year, the Company’s tax provision estimate was determined using an actual year-to-date method. In the prior year, the estimate was based on the forecasted full year rate.

The reserve for uncertain tax positions on March 31, 2023 was $4.2 million, including interest and penalties.  Within the next twelve months, it is reasonably possible that $1.3 million unrecognized income tax benefits will be recognized upon settlement of tax examinations and the expiration of various statutes of limitations.

12.   Commitments and Contingencies

Environmental        

The Company is involved in a number of environmental remediation investigations and cleanups and, along with other companies, has been identified as a “potentially responsible party” for certain byproduct disposal sites.  While each of these matters is subject to various uncertainties, it is probable that the Company will agree to make payments toward funding certain of these activities, and it is possible that some of these matters will be decided unfavorably to the Company.  The Company has evaluated its potential liability and its financial exposure is dependent upon such factors as the continuing evolution of environmental laws and regulatory requirements, the availability and application of technology, the allocation of cost among potentially responsible parties, the years of remedial activity required and the remediation methods selected. 

The Company evaluates its liability for future environmental remediation costs on a quarterly basis. Although actual costs to be incurred at identified sites in future periods may vary from the estimates (given inherent uncertainties in evaluating environmental exposures), the Company does not expect that any costs that are reasonably possible to be incurred by the Company in connection with environmental matters in excess of the amounts accrued would have a material adverse effect on the Company's financial condition, results of operations or cash flows.

The following table summarizes information related to the location and undiscounted amount of the Company's environmental liabilities:

(In thousands)	March 31 2023		December 31 2022
Current portion of environmental liabilities (a)	$	6,859	$	7,120
Long-term environmental liabilities	26,481		26,880
Total environmental liabilities	$	33,340	$	34,000

(a)    The current portion of environmental liabilities is included in the caption Other current liabilities on the Condensed Consolidated Balance Sheets.

15

Legal Proceedings

In the ordinary course of business, the Company is a defendant or party to various claims and lawsuits, including those discussed below. Unless stated otherwise below, the Company has not determined a loss to be probable or estimable for these legal proceedings.

On March 28, 2018, the United States Environmental Protection Agency (the “EPA”) conducted an inspection of ESOL’s off-site waste management facility in Detroit, MI. On November 23, 2021, the EPA proposed a civil penalty of $390,092 as part of a proposed Administrative Consent Order for alleged improper air emissions at the site. The allegations in the proposed Administrative Consent Order and civil penalty relate exclusively to the period prior the Company’s purchase of the ESOL business. The Company is vigorously contesting the allegations. While it is the Company's position that any loss related to this issue will be recoverable under indemnity rights under the ESOL purchase agreement and representations and warranties insurance policies purchased by the Company, there can be no assurance that the Company's position will ultimately prevail. On August 31, 2022, the parties executed the first of a series of Tolling Agreements, which excludes the period from March 1, 2022 through June 30, 2023, for the purposes of calculating the statute of limitations and other related defenses.

On January 27, 2020, the U.S. EPA issued a Notice of Potential Liability to the Company, along with several other companies, concerning the Newtown Creek Superfund Site located in Kings and Queens Counties in New York. The Notice alleges certain facilities formerly owned or operated by subsidiaries of the Company may have resulted in the discharge of hazardous substances into Newtown Creek or its Dutch Kills tributary. The site has been subject to CERCLA response activities since approximately 2011. The U.S. EPA expects to propose a sitewide cleanup plan no sooner than 2024 and announced in July 2021 that it would defer its decision on a potential early action response for the lower two miles of the Creek until the sitewide studies are completed. The Company is one of approximately twenty (20) Potentially Responsible Parties ("PRPs") that have received notices, though it is believed other PRPs may exist. The Company vigorously contests the allegations of the Notice and currently does not believe that this matter will have a material effect on the Company’s financial position or results from operations.

On June 25 and 26, 2018, the DTSC conducted a compliance enforcement inspection of ESOL’s facility in Rancho Cordova, California, which was then owned by Stericycle, Inc. On February 14, 2020, the DTSC filed an action in the Superior Court for the State of California, Sacramento Division, alleging violations of California’s Hazardous Waste Control Law and the facility’s hazardous waste permit arising from the inspection. On August 27, 2020 the DTSC issued a Notice of Denial of Hazardous Waste Facility Permit Application, denying the renewal of the facility's hazardous waste permit. The Company has exhausted its legal challenges to the denial of the Hazardous Waste facility permit, and the hazardous waste facility is in the process of closing. The Company continues to utilize the site for non-hazardous waste and is evaluating additional potential alternate uses for the site. The DTSC investigation and compliance issues leading to the compliance tier assignment were ongoing well before the Company's acquisition of the ESOL business, and the Company was aware of the investigation and many of the issues raised in the investigation at the time of the purchase. Accordingly, the Company is indemnified for certain fines and other costs and expenses associated with this matter by Stericycle, Inc. The Company has not accrued any amounts in respect of these alleged violations and cannot estimate the reasonably possible loss or the range of reasonably possible losses that it may incur.

The Company has had ongoing meetings with the SCE over processing salt cakes, a processing byproduct, stored at the Al Hafeerah site. The Company’s Bahrain operations that produced the salt cakes has ceased operations. An Environmental Impact Assessment and Technical Feasibility Study for facilities to process the salt cakes was approved by the SCE during the first quarter of 2018. Commissioning of the facilities was completed during the third quarter of 2021 and the processing of the salt cakes has commenced. The Company's current reserve of $6.0 million at March 31, 2023 continues to represent the Company's best estimate of the ultimate costs to be incurred to resolve this matter. The Company continues to evaluate this reserve and any future change in estimated costs which could be material to the Company’s results of operations in any one period.

16

On July 27, 2018, Brazil’s Federal and Rio de Janeiro State Public Prosecution Offices (MPF and MPE) filed a Civil Public Action against one of the Company's customers (CSN), the Company’s Brazilian subsidiary, the Municipality of Volta Redonda, Brazil, and the Instituto Estadual do Ambiente (local environmental protection agency) seeking the implementation of various measures to limit and reduce the accumulation of customer-owned slag at the site in Brazil. On August 6, 2018 the 3rd Federal Court in Volta Redonda granted the MPF and MPE an injunction against the same parties requiring, among other things, CSN and the Company’s Brazilian subsidiary to limit the volume of slag sent to the site. Because the customer owns the site and the slag located on the site, the Company believes that complying with this injunction is the steel producer’s responsibility.  On March 18, 2019 the Court issued an order fining the Company 5,000 Brazilian reais per day (or approximately $1 thousand per day) and CSN 20,000 Brazilian reais per day (or approximately $4 thousand per day) until the requirements of the injunction are met. On November 1, 2019 the Court issued an additional order increasing the fines assessed to the Company to 25,000 Brazilian reais per day (or approximately $5 thousand per day) and raising the fines assessed to CSN to 100,000 Brazilian reais per day (or approximately $20 thousand per day). The Court also assessed an additional joint fine of 10,000,000 Brazilian reais (or approximately $2.0 million) against CSN and the Company. The Company is appealing the fines and the underlying injunction.  Both the Company and CSN continue to have discussions with the Prosecution Offices and governmental authorities on the injunction and the possible resolution of the underlying case. Beginning on March 25, 2022, the Courts entered a series of orders suspending the litigation proceedings as well as the accrual of interest and penalties while the parties discuss a possible resolution of the matter. The Company does not believe that a loss relating to this matter is probable or estimable at this point.

On October 19, 2018, local environmental authorities issued an enforcement action against the Company concerning the Company’s operations at a customer site in Ijmuiden, Netherlands. The enforcement action alleged violations of the Company’s environmental permit at the site, which restricts the release of any visible dust emissions. On January 12, 2022, the Administrative Supreme Court upheld the Company’s challenge of these enforcement actions as they relate to the slag tipping area of the site. As a result, all fines asserted against the Company to date have been invalidated and all fines paid to date have been reimbursed. This order is not appealable. On or about October 14, 2021, the Company received a subpoena and two indictments on this matter before the Amsterdam District Court in the Netherlands. The Amsterdam Public Prosecutor’s Office issued the two indictments against the Company, alleging violations in connection with dust releases and/or events alleged to have occurred in 2018 through May 2020 at the site. The action cites provisions which permit fines for the alleged infractions and seeks €100,000 in fines with a smaller amount held in abeyance. On February 2, 2022, the prosecutor announced that they would further investigate residents’ claims related to this matter. On February 25, 2022, the Amsterdam District Court ruled that the Company was liable for only one alleged violation and that this alleged violation was unintentional. The court issued a fine of €5,000, to be held in abeyance. Both the Company and the Public Prosecutor’s Office have appealed this ruling. The Company is vigorously contesting all allegations against it and is also working with its customer to ensure the control of emissions. The Company has contractual indemnity rights from its customer that it believes will substantially cover any fines or penalties.

On November 5, 2020, a worker suffered a fatal injury at a site owned by the Company’s customer, Gerdau Ameristeel US, Inc., in Midlothian, TX. Although the Company was not directly involved in the accident, the worker was employed by a sub-contractor of a sub-contractor of the Company. The worker’s family filed suit in the 125th Judicial District Court of Harris County, TX against multiple parties, including the Company, seeking monetary damages. By a letter agreement dated December 1, 2022, the worker's family agreed to settle their claims against the Company and Gerdau. The parties are working to complete a formal settlement agreement. The Company has recorded a liability for its insurance deductible of $5.0 million and an indemnification receivable from its customer for the recovery of certain losses based upon the contractual indemnity rights. There can be no assurances that the Company's position will ultimately prevail; however, any financial statement impact is not expected to be material.

On March 22, 2022, the U.S. EPA issued a Notice of Intent to File an Administrative Complaint (NOI) alleging violations of the federal Emergency Planning and Community Right-to-Know Act at the Company’s facilities in Tacoma, WA and Kent, WA. The NOI relates exclusively or almost exclusively to the period when Stericycle owned and operated the sites. The NOI proposes a penalty of $3,000,000. The Company is currently reviewing the veracity of the allegations and the corresponding proposed penalty amount and has recorded a liability of $600,000 as its best estimate to resolve this matter. While it is the Company’s position that it has recourse for some or all liabilities, if any, that arise from this matter under the ESOL purchase agreement and representations and warranties insurance policies purchased by the Company, there can be no assurances that the Company’s position will ultimately prevail.

17

On March 21, 2022, the Company received a draft penalty matrix from the PA DEP concerning alleged reporting, monitoring and related issues at the Company’s Hatfield, PA site prior to the time the Company acquired the site from Stericycle, Inc. The draft penalty matrix proposed a penalty of $1,000,000. On June 29, 2022, the PA DEP issued a draft Consent Assessment of Civil Penalty ("CACP") related to the alleged issues at the site. The Company and PA DEP entered into a CACP, settling the PA DEP's claims for $239,500, which was recorded as a liability. While it is the Company’s position that it has recourse for some or all liabilities arising from this matter under the ESOL purchase agreement and representations and warranties insurance policies purchased by the Company, there can be no assurances that the Company’s position will ultimately prevail.

DEA Investigation

Prior to the Company’s acquisition of ESOL, Stericycle, Inc. notified the Company that the DEA had served an administrative subpoena on Stericycle, Inc. and executed a search warrant at a facility in Rancho Cordova, California and an administrative inspection warrant at a facility in Indianapolis, Indiana. The Company has determined that the DEA and the DTSC have launched investigations involving, at least in part, the ESOL business of collecting, transporting, and destroying controlled substances from retail customers that transferred from Stericycle, Inc. to the Company. The Company is cooperating with these inquiries, which relate primarily to the period before the Company owned the ESOL business. Since the acquisition of the ESOL business, the Company has performed a vigorous review of ESOL’s compliance program related to controlled substances and has made material changes to the manner in which controlled substances are transported from retail customers to DEA-registered facilities for destruction. The Company has not accrued any amounts in respect of these investigations and cannot estimate the reasonably possible loss or the range of reasonably possible losses that it may incur, if any. Investigations of this type are, by their nature, uncertain and unpredictable. While it is the Company’s position that it has recourse for some or all liabilities, if any, that arise from these matters under the ESOL purchase agreement and representations and warranties insurance policies purchased by the Company, there can be no assurances that the Company’s position will ultimately prevail.

Brazilian Tax Disputes

The Company is involved in a number of tax disputes with federal, state and municipal tax authorities in Brazil. These disputes are at various stages of the legal process, including the administrative review phase and the collection action phase, and include assessments of fixed amounts of principal and penalties, plus interest charges that increase at statutorily determined amounts per month and are assessed on the aggregate amount of the principal and penalties. In addition, the losing party, at the collection action or court of appeals phase, could be subject to a charge to cover statutorily mandated legal fees, which are generally calculated as a percentage of the total assessed amounts due, inclusive of penalty and interest. Many of the claims relate to ICMS, services and social security tax disputes. The largest proportion of the assessed amounts relate to ICMS claims filed by the SPRA, encompassing the period from January 2002 to May 2005.

In October 2009, the Company received notification of the SPRA’s final administrative decision regarding the levying of ICMS in the State of São Paulo in relation to services provided to a customer in the State between January 2004 and May 2005.  As of March 31, 2023 the principal amount of the tax assessment from the SPRA with regard to this case is approximately $1.2 million, with penalty, interest and fees assessed to date increasing such amount by an additional $17.7 million.  On June 4, 2018 the Appellate Court of the State of Sao Paulo ruled in favor of the SPRA but ruled that the assessed penalty should be reduced to approximately $1.2 million. After calculating the interest accrued on the penalty, the Company estimates that this ruling reduces the current overall potential liability for this case to approximately $7.2 million. All such amounts include the effect of foreign currency translation. The Company has appealed the ruling in favor of the SPRA to the Superior Court of Justice. Due to multiple court precedents in the Company’s favor, as well as the Company’s ability to appeal, the Company does not believe a loss is probable.

Another ICMS tax case involving the SPRA refers to the tax period from January 2002 to December 2003. In December 2018, the administrative tribunal hearing the case upheld the Company's liability. The aggregate amount assessed by the tax authorities in August 2005 was $5.0 million (the amounts with regard to this claim are valued as of the date of the assessment since it has not yet reached the collection phase), composed of a principal amount of $1.2 million, with penalty and interest assessed through that date increasing such amount by an additional $3.8 million.  On December 6, 2018 the administrative tribunal reduced the applicable penalties to $0.9 million. After calculating the interest accrued on the current penalty, the Company estimates that the current overall liability for this case to be approximately $5.5 million. All such amounts include the effect of foreign currency translation. The Company has appealed to the judicial phase at the Third Trial Court of the District of Cubatão, State of São Paulo. On October 14, 2022, the District Court issued a decision holding that the Company is not liable for the taxes at issue. The SPRA appealed this decision on December 28, 2022 and this appeal is pending review by the Appellate Court of the State of São Paulo. Due to multiple court precedents in the Company's favor, the Company does not believe a loss is probable.

The Company continues to believe that sufficient coverage for these claims exists as a result of the indemnification obligations of the Company's customer and such customer’s pledge of assets in connection with the October 2009 notice, as required by Brazilian law.

18

On December 30, 2020, the Company received an assessment from the municipal authority in Ipatinga, Brazil alleging $2.1 million in unpaid service taxes from the period 2015 to 2020. After calculating the interest and penalties accrued, the Company estimates that the current overall potential liability for this case to be approximately $3.5 million. On January 18, 2021, the Company filed a challenge to the assessment. Due to the multiple defenses that are available, the Company does not believe a loss is probable.

The Company intends to continue its practice of vigorously defending itself against these tax claims under various alternatives, including judicial appeal. The Company will continue to evaluate its potential liability with regard to these claims on a quarterly basis; however, it is not possible to predict the ultimate outcome of these tax-related disputes in Brazil. No loss provision has been recorded in the Company's condensed consolidated financial statements for the disputes described above because the loss contingency is not deemed probable, and the Company does not expect that any costs that are reasonably possible to be incurred by the Company in connection with Brazilian tax disputes would have a material adverse effect on the Company's financial condition, results of operations or cash flows.

Other

The Company is named as one of many defendants (approximately 90 or more in most cases) in legal actions in the U.S. alleging personal injury from exposure to airborne asbestos over the past several decades.  In their suits, the plaintiffs have named as defendants, among others, many manufacturers, distributors and installers of numerous types of equipment or products that allegedly contained asbestos.

The Company believes that the claims against it are without merit. The Company has never been a producer, manufacturer or processor of asbestos fibers. Any asbestos-containing part of a Company product used in the past was purchased from a supplier and the asbestos encapsulated in other materials such that airborne exposure, if it occurred, was not harmful and is not associated with the types of injuries alleged in the pending actions.

At March 31, 2023, there were 17,237 pending asbestos personal injury actions filed against the Company.  Of those actions, 16,596 were filed in the New York Supreme Court (New York County), 115 were filed in other New York State Supreme Court Counties and 526 were filed in courts located in other states.

The complaints in most of those actions generally follow a form that contains a standard damages demand of $20 million or $25 million, regardless of the individual plaintiff’s alleged medical condition, and without identifying any specific Company product.

At March 31, 2023, 16,549 of the actions filed in New York Supreme Court (New York County) were on the Deferred/Inactive Docket created by the court in December 2002 for all pending and future asbestos actions filed by persons who cannot demonstrate that they have a malignant condition or discernible physical impairment. The remaining 47 cases in New York County are pending on the Active or In Extremis Docket created for plaintiffs who can demonstrate a malignant condition or physical impairment.

The Company has liability insurance coverage under various primary and excess policies that the Company believes will be available, if necessary, to substantially cover any liability that might ultimately be incurred in the asbestos actions referred to above. The costs and expenses of the asbestos actions are being paid by the Company's insurers.

In view of the persistence of asbestos litigation in the U.S., the Company expects to continue to receive additional claims in the future. The Company intends to continue its practice of vigorously defending these claims and cases. At March 31, 2023, the Company has obtained dismissal in approximately 28,422 cases by stipulation or summary judgment prior to trial.

It is not possible to predict the ultimate outcome of asbestos-related actions in the U.S. due to the unpredictable nature of this litigation, and no loss provision has been recorded in the Company's condensed consolidated financial statements because a loss contingency is not deemed probable or estimable. Despite this uncertainty, and although results of operations and cash flows for a given period could be adversely affected by asbestos-related actions, the Company does not expect that any costs that are reasonably possible to be incurred by the Company in connection with asbestos litigation would have a material adverse effect on the Company's financial condition, results of operations or cash flows.

19

The Company is subject to various other claims and legal proceedings covering a wide range of matters that arose in the ordinary course of business. In the opinion of management, all such matters are adequately covered by insurance or by established reserves, and, if not so covered, are without merit or are of such kind, or involve such amounts, as would not have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Insurance liabilities are recorded when it is probable that a liability has been incurred for a particular event and the amount of loss associated with the event can be reasonably estimated. Insurance reserves have been estimated based primarily upon actuarial calculations and reflect the undiscounted estimated liabilities for ultimate losses, including claims incurred but not reported. Inherent in these estimates are assumptions that are based on the Company's history of claims and losses, a detailed analysis of existing claims with respect to potential value, and current legal and legislative trends. If actual claims differ from those projected by management, changes (either increases or decreases) to insurance reserves may be required and would be recorded through income in the period the change was determined. When a recognized liability has been determined to be covered by third-party insurance, the Company records an insurance claim receivable to reflect the covered liability. Insurance claim receivables are included in Other receivables on the Company's Condensed Consolidated Balance Sheets. See Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on Accrued insurance and loss reserves.

13.  Reconciliation of Basic and Diluted Shares

	Three Months Ended
	March 31
(In thousands, except per share amounts)	2023		2022
Income (loss) from continuing operations attributable to Harsco Corporation common stockholders	$	(9,557)	$	(7,333)
Weighted-average shares outstanding:
Weighted-average shares outstanding - basic	79,633		79,363
Dilutive effect of stock-based compensation	—		—
Weighted-average shares outstanding - diluted	79,633		79,363
Earnings (loss) from continuing operations per common share, attributable to Harsco Corporation common stockholders:
Basic	$	(0.12)	$	(0.09)
Diluted	$	(0.12)	$	(0.09)

The following average outstanding stock-based compensation units were not included in the computation of diluted earnings per share because the effect was either antidilutive or the market conditions for the performance share units were not met:

	Three Months Ended
	March 31
(In thousands)	2023	2022
Restricted stock units	1,000	825
Stock appreciation rights	2,473	2,653
Performance share units	1,394	1,226

14.   Derivative Instruments, Hedging Activities and Fair Value

Derivative Instruments and Hedging Activities

The Company uses derivative instruments, including foreign currency exchange forward contracts and interest rate swaps to manage certain foreign currency and interest rate exposures.  Derivative instruments are viewed as risk management tools by the Company and are not used for trading or speculative purposes. All derivative instruments are recorded on the Company's Condensed Consolidated Balance Sheets at fair value.  The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

20

The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information.  Accordingly, the Company utilizes valuation techniques that maximize the use of observable inputs, such as forward rates, interest rates, the Company’s credit risk and counterparties’ credit risks, and which minimize the use of unobservable inputs.  The Company is able to classify fair value balances based on the ability to observe those inputs.  Foreign currency exchange forward contracts and interest rate swaps are based upon pricing models using market-based inputs (Level 2).  Model inputs can be verified and valuation techniques do not involve significant management judgment.

The fair value of outstanding derivative contracts recorded as assets and liabilities on the Company's Condensed Consolidated Balance Sheets was as follows:

(In thousands)	Balance Sheet Location	Fair Value of Derivatives Designated as Hedging Instruments		Fair Value of Derivatives Not Designated as Hedging Instruments		Total Fair Value
March 31, 2023
Asset derivatives (Level 2):
Foreign currency exchange forward contracts	Other current assets	$	119	$	1,967	$	2,086
Interest rate swaps	Other current assets	1,310		—		1,310
Total		$	1,429	$	1,967	$	3,396
Liability derivatives (Level 2):
Foreign currency exchange forward contracts	Other current liabilities	$	806	$	6,695	$	7,501
Interest rate swaps	Other liabilities	4,446		—		4,446
Total		$	5,252	$	6,695	$	11,947
December 31, 2022
Asset derivatives (Level 2):
Foreign currency exchange forward contracts	Other current assets	$	1,042	$	2,154	$	3,196
Total		$	1,042	$	2,154	$	3,196
Liability derivatives (Level 2):
Foreign currency exchange forward contracts	Other current liabilities	$	577	$	4,796	$	5,373
Total		$	577	$	4,796	$	5,373

All of the Company's derivatives are recorded on the Condensed Consolidated Balance Sheets at gross amounts and do not offset. All of the Company's interest rate swaps and certain foreign currency exchange forward contracts are transacted under ISDA documentation. Each ISDA master agreement permits the net settlement of amounts owed in the event of default. The Company's derivative assets and liabilities subject to enforceable master netting arrangements, if offset, would have resulted in a net liability of $2.1 million and $0.1 million at March 31, 2023 and December 31, 2022, respectively.

The effect of derivative instruments on the Company's Condensed Consolidated Statements of Comprehensive Income (Loss) was as follows:

Derivatives Designated as Hedging Instruments

	Amount Recognized in OCI on Derivatives				Amount Reclassified from AOCI into Income - Effective Portion or Equity
	Three Months Ended				Three Months Ended
	March 31				March 31
(In thousands)	2023		2022		2023		2022
Foreign currency exchange forward contracts	$	(682)	$	1,009	$	411	$	(588)
Interest rate swaps	(2,887)		—		(248)		1,050
	$	(3,569)	$	1,009	$	163	$	462

21

The location and amount of gain (loss) recognized on the Company's Condensed Consolidated Statements of Operations was as follows:

	Three Months Ended
	March 31
	2023				2022
(In thousands)	Interest Expense		Income (Loss) from Discontinued Businesses		Interest Expense		Income (Loss) from Discontinued Businesses
Total amounts in the Condensed Consolidated Statement of Operations in which the effects of derivatives designated as hedging instruments are recorded	$	(24,328)	$	619	$	(15,092)	$	(39,097)
Interest rate swaps:
Gain or (loss) reclassified from AOCI into income	248		—		(1,050)		—
Amount recognized in earnings due to ineffectiveness	—		—		891		—
Foreign exchange contracts:
Gain or (loss) reclassified from AOCI into income	—		(411)		—		588

Derivatives Not Designated as Hedging Instruments

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives (a)
		Three Months Ended
		March 31
(In thousands)		2023		2022
Foreign currency exchange forward contracts	Cost of services and products sold	$	(3,297)	$	3,838

(a)      These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures.

Foreign Currency Exchange Forward Contracts

The Company conducts business in multiple currencies and, accordingly, is subject to the inherent risks associated with foreign exchange rate movements.  Foreign currency-denominated assets and liabilities are translated into U.S. dollars at the exchange rates existing at the respective consolidated balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. 

22

The Company uses derivative instruments to hedge cash flows related to foreign currency fluctuations.  Foreign currency exchange forward contracts outstanding are part of a worldwide program to minimize foreign currency exchange operating income and balance sheet exposure by offsetting foreign currency exposures of certain future payments between the Company and various subsidiaries, suppliers or customers.  The unsecured contracts are with major financial institutions. The Company may be exposed to credit loss in the event of non-performance by the contract counterparties. The Company evaluates the creditworthiness of the counterparties and does not expect default by them.  Foreign currency exchange forward contracts are used to hedge commitments, such as foreign currency debt, firm purchase commitments and foreign currency cash flows for certain export sales transactions.

Changes in the fair value of derivatives used to hedge foreign currency denominated balance sheet items are reported directly in earnings, along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments may be accounted for as cash flow hedges, as deemed appropriate, if the criteria for hedge accounting are met.  Gains and losses on derivatives designated as cash flow hedges are deferred in AOCI, a separate component of equity, and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. The ineffective portion of all hedges, if any, is recognized currently in earnings.

The recognized gains and losses offset amounts recognized in cost of services and products sold principally as a result of intercompany or third-party foreign currency exposures. At March 31, 2023 and December 31, 2022, the notional amounts of foreign currency exchange forward contracts were $529.9 million and $573.8 million, respectively. These contracts are primarily denominated in British Pound Sterling and Euros and mature through 2024.

In addition to foreign currency exchange forward contracts, the Company designates certain loans as hedges of net investments in international subsidiaries. The Company recorded pre-tax net gains of $0.3 million for the three months ended March 31, 2023 and pre-tax net losses of $0.6 million for the three months ended March 31, 2022 in AOCI.

Interest Rate Swaps

The Company uses interest rate swaps in conjunction with certain variable rate debt issuances in order to secure a fixed interest rate. Changes in the fair value attributed to the effect of the swaps’ interest spread and changes in the credit worthiness of the counter-parties are recorded in AOCI and are reclassified into income as interest payments are made.

The Company had a series of interest rate swaps that matured in 2022 and had the effect of converting $200.0 million of the Term Loan Facility from floating-rate to fixed-rate. The fixed rates provided by the swaps replaced the adjusted LIBOR rate in the interest calculation to 3.12% for 2022.

During the three months ended March 31, 2023, the Company entered into a new series of interest rate swaps with a scheduled maturity of December 2025. The swaps have the effect of converting $300.0 million of the New Term Loan from a floating interest rate to a fixed interest rate. The fixed rates provided by these swaps, ranging from 4.17% to 4.21%, replace the adjusted SOFR rate in the interest calculation.

Fair Value of Other Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and short-term borrowings approximate fair value due to the short-term maturities of these assets and liabilities. At March 31, 2023 and December 31, 2022, the total fair value of long-term debt and current maturities (excluding deferred financing costs) was $1,246.0 million and $1,227.6 million, respectively, compared with a carrying value of $1,373.8 million and $1,364.2 million, respectively.  Fair values for debt are based on pricing models using market-based inputs (Level 2) for similar issues or on the current rates offered to the Company for debt of the same remaining maturities.

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15. Review of Operations by Segment 

	Three Months Ended
	March 31
(In thousands)	2023		2022
Revenues From Continuing Operations
Harsco Environmental	$	273,189	$	262,051
Harsco Clean Earth	222,464		190,746
Total Revenues From Continuing Operations	$	495,653	$	452,797
Operating Income (Loss) From Continuing Operations
Harsco Environmental	$	22,285	$	18,267
Harsco Clean Earth	16,471		(1,297)
Corporate	(9,751)		(9,222)
Total Operating Income (Loss) From Continuing Operations	$	29,005	$	7,748
Depreciation
Harsco Environmental	$	27,560	$	28,072
Harsco Clean Earth	4,927		5,101
Corporate	552		431
Total Depreciation	$	33,039	$	33,604
Amortization
Harsco Environmental	$	999	$	1,828
Harsco Clean Earth	6,029		6,075
Corporate (a)	937		683
Total Amortization	$	7,965	$	8,586
Capital Expenditures
Harsco Environmental	$	16,551	$	24,790
Harsco Clean Earth	4,830		6,696
Corporate	100		966
Total Capital Expenditures	$	21,481	$	32,452

(a)     Amortization expense on Corporate relates to the amortization of deferred financing costs.

Reconciliation of Segment Operating Income to Income (Loss) From Continuing Operations Before Income Taxes and Equity Income

	Three Months Ended
	March 31
(In thousands)	2023		2022
Segment operating income (loss)	$	38,756	$	16,970
General Corporate expense	(9,751)		(9,222)
Operating income (loss) from continuing operations	29,005		7,748
Interest income	1,455		644
Interest expense	(24,328)		(15,092)
Facility fees and debt-related income (expense)	(2,363)		(532)
Defined benefit pension income	(5,335)		2,410
Income (loss) from continuing operations before income taxes and equity income	$	(1,566)	$	(4,822)

16. 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 and products. Revenues from continuing operations include service revenues from HE and CE and product revenues from HE. Revenue from the Rail business is included in Income (loss) from discontinued businesses.

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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, 2023
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Consolidated Totals
Primary Geographical Markets (a):
North America	$	78,473	$	222,464	$	300,937
Western Europe	101,386		—		101,386
Latin America (b)	40,955		—		40,955
Asia-Pacific	28,961		—		28,961
Middle East and Africa	18,405		—		18,405
Eastern Europe	5,009		—		5,009
Total Revenues	$	273,189	$	222,464	$	495,653
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	229,361	$	—	$	229,361
Ecoproducts	38,402		—		38,402
Environmental systems for aluminum dross and scrap processing	5,426		—		5,426
Hazardous waste processing solutions	—		186,112		186,112
Soil and dredged materials processing and reuse solutions	—		36,352		36,352
Total Revenues	$	273,189	$	222,464	$	495,653

	Three Months Ended
	March 31, 2022
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Consolidated Totals
Primary Geographical Markets (a):
North America	$	71,079	$	190,746	$	261,825
Western Europe	102,079		—		102,079
Latin America (b)	35,805		—		35,805
Asia-Pacific	28,068		—		28,068
Middle East and Africa	19,886		—		19,886
Eastern Europe	5,134		—		5,134
Total Revenues	$	262,051	$	190,746	$	452,797
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	227,689	$	—	$	227,689
Ecoproducts	31,965		—		31,965
Environmental systems for aluminum dross and scrap processing	2,397		—		2,397
Hazardous waste processing solutions	—		159,007		159,007
Soil and dredged materials processing and reuse solutions	—		31,739		$	31,739
Total Revenues	$	262,051	$	190,746	$	452,797

(a)     Revenues are attributed to individual countries based on the location of the facility generating the revenue.

(b)     Includes Mexico.

The Company may receive payments in advance of earning revenue (advances on contracts), which are included in Other current liabilities and Other liabilities on the Condensed Consolidated Balance Sheets. The Company may recognize revenue in advance of being able to contractually invoice the customer (contract assets), which is included in Other current assets on the Condensed Consolidated Balance Sheets. Contract assets are transferred to Trade accounts receivable, net, when the right to payment becomes unconditional. Contract assets and advances on contracts are reported as a net position, on a contract-by-contract basis, at the end of each reporting period.

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The Company had contract assets totaling $5.5 million and $5.3 million at March 31, 2023 and December 31, 2022, respectively. The Company had advances on contracts totaling $6.4 million and $6.8 million at March 31, 2023 and December 31, 2022, respectively. During the three months ended March 31, 2023, the Company recognized approximately $3 million of revenue related to amounts previously included in advances on contracts. During the three months ended March 31, 2022, the Company recognized approximately $3 million of revenue related to amounts previously included in advances on contracts.

At March 31, 2023, HE had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $71.8 million. Of this amount, $21.5 million is expected to be fulfilled by March 31, 2024, $21.0 million by March 31, 2025, $15.5 million by March 31, 2026, $6.6 million by March 31, 2027 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.

17.   Other (Income) Expenses, Net

The major components of this Cotherndensed Consolidated Statements of Operations caption were as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Employee termination benefit costs	$	535	$	(308)
Other costs (income) for exit activities (a)	(6,208)		581
Impaired asset write-downs	—		59
Net gains	(230)		(1,812)
Other	(248)		301
Other (income) expenses, net	$	(6,151)	$	(1,179)

(a) Includes a $6.8 million net gain recognized related to a lease modification during the three months ended March 31, 2023 that resulted in lease incentive for the Company to relocate an HE site prior to the end of the expected lease term.

18. Components of Accumulated Other Comprehensive Loss

AOCI is included on the Condensed Consolidated Statements of Stockholders' Equity. The components of AOCI, net of the effect of income taxes, and activity for the three months ended March 31, 2022 and 2023 was as follows:

	Components of AOCI, Net of Tax
(In thousands)	Cumulative Foreign Exchange Translation Adjustments			Effective Portion of Derivatives Designated as Hedging Instruments			Cumulative Unrecognized Actuarial Losses on Pension Obligations			Unrealized Gain (Loss) on Marketable Securities		Total
Balance at December 31, 2021	$	(134,889)		$	(3,024)		$	(422,248)		$	22	$	(560,139)
OCI before reclassifications	(2,847)		(a)	802		(b)	9,184		(a)	(3)		7,136
Amounts reclassified from AOCI, net of tax	—			338			4,534			—		4,872
Total OCI	(2,847)			1,140			13,718			(3)		12,008
Less: OCI attributable to noncontrolling interests	482			—			—			—		482
OCI attributable to Harsco Corporation	(2,365)			1,140			13,718			(3)		12,490
Balance at March 31, 2022	$	(137,254)		$	(1,884)		$	(408,530)		$	19	$	(547,649)

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	Components of AOCI, Net of Tax
(In thousands)	Cumulative Foreign Exchange Translation Adjustments			Effective Portion of Derivatives Designated as Hedging Instruments			Cumulative Unrecognized Actuarial Losses on Pension Obligations			Unrealized Gain (Loss) on Marketable Securities		Total
Balance at December 31, 2022	$	(213,104)		$	157		$	(354,699)		$	10	$	(567,636)
OCI before reclassifications	12,446		(a)	(2,684)		(b)	(7,227)		(a)	1		2,536
Amounts reclassified from AOCI, net of tax	—			124			4,492			—		4,616
Total OCI	12,446			(2,560)			(2,735)			1		7,152
Less: OCI attributable to noncontrolling interests	(358)			—			—			—		(358)
OCI attributable to Harsco Corporation	12,088			(2,560)			(2,735)			1		6,794
Balance at March 31, 2023	$	(201,016)		$	(2,403)		$	(357,434)		$	11	$	(560,842)

(a)    Principally foreign currency fluctuation.

(b)     Net change from periodic revaluations.

Amounts reclassified from AOCI were as follows:

(In thousands)	Three Months Ended				Location on the Condensed Consolidated Statements of Operations
	March 31
	2023		2022
Amortization of cash flow hedging instruments:
Foreign currency exchange forward contracts	$	411	$	(588)	Income (loss) from discontinued businesses
Interest rate swaps	(248)		1,050		Interest expense
Total before taxes	163		462
Income taxes	(39)		(124)
Total reclassification of cash flow hedging instruments, net of tax	$	124	$	338
Amortization of defined benefit pension items (c):
Actuarial losses	$	4,670	$	4,727	Defined benefit pension income (expense)
Prior service costs	114		120		Defined benefit pension income (expense)
Total before taxes	4,784		4,847
Income taxes	(292)		(313)
Total reclassification of defined benefit pension items, net of tax	$	4,492	$	4,534

(c)    These AOCI components are included in the computation of net periodic pension costs. See Note 10, Employee Benefit Plans, for additional details.

27

ITEM 2.                 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the accompanying unaudited condensed consolidated financial statements as well as the audited consolidated financial statements of the Company, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 which includes additional information about the Company’s critical accounting policies, contractual obligations, practices and the transactions that support the financial results, and provides a more comprehensive summary of the Company’s outlook, trends and strategies for 2023 and beyond.

Certain amounts included in Item 2 of this Quarterly Report on Form 10-Q are rounded in millions and all percentages are calculated based on actual amounts.  As a result, minor differences may exist due to rounding.

Forward-Looking Statements

The nature of the Company's business, together with the number of countries in which it operates, subject it to changing economic, competitive, regulatory and technological conditions, risks and uncertainties. In accordance with the "safe harbor" provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, the Company provides the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the results contemplated by forward-looking statements, including the expectations and assumptions expressed or implied herein. Forward-looking statements contained herein could include, among other things, statements about management's confidence in and strategies for performance; expectations for new and existing products, technologies and opportunities and expectations regarding growth, sales, cash flows, and earnings. Forward-looking statements can be identified by the use of such terms as "may," "could," "expect," "anticipate," "intend," "believe," "likely," "estimate," "outlook," "plan" or other comparable terms.

Factors that could cause actual results to differ, perhaps materially, from those implied by forward-looking statements include, but are not limited to: (1) changes in the worldwide business environment in which the Company operates, including changes in general economic conditions or changes due to COVID-19 and governmental and market reactions to COVID-19; (2) changes in currency exchange rates, interest rates, commodity and fuel costs and capital costs; (3) changes in the performance of equity and bond markets that could affect, among other things, the valuation of the assets in the Company's pension plans and the accounting for pension assets, liabilities and expenses; (4) changes in governmental laws and regulations, including environmental, occupational health and safety, tax and import tariff standards and amounts; (5) market and competitive changes, including pricing pressures, market demand and acceptance for new products, services and technologies; (6) the Company's inability or failure to protect its intellectual property rights from infringement in one or more of the many countries in which the Company operates; (7) failure to effectively prevent, detect or recover from breaches in the Company's cybersecurity infrastructure; (8) unforeseen business disruptions in one or more of the many countries in which the Company operates due to political instability, civil disobedience, armed hostilities, public health issues or other calamities; (9) disruptions associated with labor disputes and increased operating costs associated with union organization; (10) the seasonal nature of the Company's business; (11) the Company's ability to successfully enter into new contracts and complete new acquisitions or strategic ventures in the time-frame contemplated, or at all; (12) the Company's ability to negotiate, complete, and integrate strategic transactions; (13) failure to complete a process for the divestiture of the Rail segment, as announced on November 2, 2021 on satisfactory terms, or at all; (14) potential severe volatility in the capital or commodity markets; (15) failure to retain key management and employees; (16) the outcome of any disputes with customers, contractors and subcontractors; (17) the financial condition of the Company's customers, including the ability of customers (especially those that may be highly leveraged, have inadequate liquidity or whose business is significantly impacted by COVID-19) to maintain their credit availability; (18) implementation of environmental remediation matters; (19) risk and uncertainty associated with intangible assets; (20) the risk that the Company may be unable to implement fully and successfully the expected incremental actions at the Harsco Clean Earth Segment due to market conditions or otherwise and may fail to deliver the expected resulting benefits; and (21) other risk factors listed from time to time in the Company's SEC reports. A further discussion of these, along with other potential risk factors, can be found in Part II, Item 1A, "Risk Factors," below, as well as Part I, Item 1A, "Risk Factors," of the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The Company cautions that these factors may not be exhaustive and that many of these factors are beyond the Company's ability to control or predict. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. The Company undertakes no duty to update forward-looking statements except as may be required by law.

28

Executive Overview

The Company is a market-leading, global provider of environmental solutions for industrial, retail and medical waste streams. The Company's operations consist of two reportable segments: Harsco Environmental and Harsco Clean Earth. HE operates primarily under long-term contracts, providing critical environmental services and material processing to the global steel and metals industries, including zero waste solutions for manufacturing byproducts within the metals industry. CE provides specialty waste processing, treatment, recycling and beneficial reuse solutions for customers in the industrial, retail, healthcare and construction industries across a variety of waste needs, including hazardous, non-hazardous and contaminated soils and dredged materials. The Company has locations in approximately 30 countries, including the U.S. The Company was incorporated in 1956.

The Company maintains a positive long-term outlook across its businesses supported by favorable underlying growth characteristics in its businesses and investments by the Company to further supplement growth. The Company's view for the remainder of 2023 and beyond is supported by the below factors, which should be considered in the context of other risks, trends and strategies in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

•HE: 2023 results are expected to be modestly above 2022 results as positive impacts from higher service pricing, net of inflation, cost and operational improvement initiatives and higher environmental services and products demand at certain sites, including those linked to growth investments, are expected to be offset by the impacts of foreign exchange translation and lower commodity prices. The global steel market has experienced a period of volatility in recent quarters due to the Russia-Ukraine conflict and the resulting energy crisis in Europe, as well as inventory management through the steel industry supply-chain and a change to the economic conditions due to rising interest rates. Underlying business conditions appear to have stabilized in early 2023 and these external factors are not anticipated to have a material impact on performance in 2023. Over the longer-term, the Company expects HE to grow as a result of economic growth that supports higher global steel consumption, as well as investments and innovation that support the environmental solutions needs of customers.

•CE: 2023 results are anticipated to improve meaningfully compared to 2022, as a result of higher services pricing, net of inflation, cost and operational improvements and a modest increase in environmental services demand across certain end-markets. These benefits include pricing and operating cost initiatives implemented during 2022, along with additional improvements initiated in 2023. Longer-term, the Company expects this segment to benefit from positive underlying market trends, supported by increased environmental regulation, further growth opportunities and its attractive asset position, as well as from the less cyclical and recurring nature of this business.

Results of Operations

Segment Results

	Three Months Ended
	March 31
(In millions, except percentages)	2023			2022
Revenues:
Harsco Environmental	$	273.2		$	262.1
Harsco Clean Earth	222.5			190.7
Total Revenues	$	495.7		$	452.8
Operating Income (Loss):
Harsco Environmental	$	22.3		$	18.3
Harsco Clean Earth	16.5			(1.3)
Corporate	(9.8)			(9.2)
Total Operating Income	$	29.0		$	7.7
Operating Margins:
Harsco Environmental	8.2		%	7.0		%
Harsco Clean Earth	7.4		%	(0.7)		%
Consolidated Operating Margin	5.9		%	1.7		%

29

Harsco Environmental Segment:

Significant Effects on Revenues (In millions)	Three Months Ended
Revenues — 2022	$	262.1
Net effects of price/volume changes, primarily attributable to volume changes and service mix	23.5
Impact of foreign currency translation	(13.0)
Net impact of new and lost contracts	0.6
Revenues — 2023	$	273.2

The following factors contributed to the changes in operating income during the three months ended March 31, 2023.

Factors Positively Affecting Operating Income:

•A net gain of $6.8 million was recognized during the three months ended March 31, 2023 related to a lease modification that resulted in a lease incentive for a site relocation in the U.S.

•Operating income was moderately impacted by increased revenue under environmental services contracts due, in part, to higher overall service levels at certain sites for the three months ended March 31, 2023.

Factors Negatively Impacting Operating Income:

•The impact of cost increases relating to raw materials, labor, maintenance, and freight due to inflation at various sites, including the impact of increased fuel costs on existing contracts of $2.0 million for the three months ended March 31, 2023.

•Lower asset sale gains of $1.0 million during the three months ended March 31, 2023, as compared to the three months ended March 31, 2022.

•The three months ended March 31, 2022 included an $0.8 million recovery of Brazil non-income tax expense.

•Foreign currency translation reduced operating income by $0.9 million during the three months ended March 31, 2023.

Harsco Clean Earth Segment:

Significant Effects on Revenues (In millions)	Three Months Ended
Revenues — 2022	$	190.7
Net effects of price/volume changes	31.8
Revenues — 2023	$	222.5

The following factors contributed to the changes in operating income (loss) during the three months ended March 31, 2023.

Factors Positively Affecting Operating Income:

•Favorable changes in pricing and volume in the hazardous waste business, partially offset by the impact of cost inflation on transportation, labor, and disposal costs, of $17.4 million during the three months ended March 31, 2023.

•Favorable changes in pricing and volume in the soil and dredged materials business, partially offset by cost increases of $2.1 million during the three months ended March 31, 2023.

Factors Negatively Impacting Operating Income:

•Higher selling, general and administrative expenses ("SG&A") of $1.8 million during the three months ended March 31, 2023 primarily related to higher compensation expense, partially offset by the impact of the cost improvement initiatives that have been implemented, when compared to the prior year.

30

Consolidated Results

	March 31
	Three Months Ended
(In millions, except per share amounts and percentages)	2023			2022
Total revenues	$	495.7		$	452.8
Cost of services and products sold	400.7			377.0
Selling, general and administrative expenses	71.9			69.2
Research and development expenses	0.2			0.1
Other (income) expenses, net	(6.2)			(1.2)
Operating income (loss) from continuing operations	29.0			7.7
Interest income	1.5			0.6
Interest expense	(24.3)			(15.1)
Facility fees and debt-related income (expense)	(2.4)			(0.5)
Defined benefit pension income	(5.3)			2.4
Income (loss) from continuing operations before income taxes and equity income	(1.6)			(4.8)
Income tax benefit (expense) from continuing operations	(6.9)			(1.2)
Equity income (loss) of unconsolidated entities, net	(0.1)			(0.1)
Income (loss) from continuing operations	(8.6)			(6.2)
Income (loss) from discontinued businesses	0.6			(39.1)
Income tax benefit (expense) related to discontinued operations	(0.6)			6.6
Income (loss) from discontinued operations, net of tax	—			(32.5)
Net income (loss)	(8.6)			(38.7)
Total other comprehensive income (loss)	7.2			12.0
Total comprehensive income (loss)	(1.4)			(26.7)
Diluted earnings (loss) per common share from continuing operations attributable to Harsco Corporation common stockholders	$	(0.12)		$	(0.09)
Effective income tax rate for continuing operations	(442.1)		%	(25.3)		%

Comparative Analysis of Consolidated Results

Revenues

Revenues for the three months ended March 31, 2023 increased $42.9 million, or 9.5%, from the three months ended March 31, 2022. Foreign currency translation decreased revenues by $13.0 million for the three months ended March 31, 2023, compared with the same period in the prior year. Refer to the discussion of segment results above for information pertaining to factors positively affecting and negatively impacting revenues.

Cost of Services and Products Sold

Costs of services and products sold for the three months ended March 31, 2023 increased $23.7 million, or 6.3%, from the three months ended March 31, 2022. The changes in cost of services and products sold were attributable to the following significant items:

(In millions)	Three Months Ended
Change in costs due to changes in revenues volume	$	26.4
Changes in costs due to change in prices, including materials, labor, fuel, transportation and maintenance	11.1
Impact of foreign currency translation	(11.1)
Other	(2.7)
Total change in cost of services and products sold — 2023 vs. 2022	$	23.7

31

Selling, General and Administrative Expenses

SG&A for the three months ended March 31, 2023 increased $2.8 million, or 4.0%, from the three months ended March 31, 2022. The three months ended March 31, 2023 included higher compensation costs of $3.8 million, primarily contributed by the Company's Corporate and CE segments, when compared to prior year.

Other (Income) Expenses, Net

The major components of this Condensed Consolidated Statements of Operations caption are as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Employee termination benefit costs	$	535	$	(308)
Other costs (income) for exit activities (a)	(6,208)		581
Impaired asset write-downs	—		59
Net gains	(230)		(1,812)
Other	(248)		301
Other (income) expenses, net	$	(6,151)	$	(1,179)

(a) Includes the $6.8 million net gain related to a lease modification that resulted in a lease incentive to the Company during the three months ended March 31, 2023, as discussed above in the HE Segment results.

Interest Expense

Interest expense during the three months ended March 31, 2023 increased by $9.2 million, compared with the three months ended March 31, 2022. The increase during the three months ended March 31, 2023 primarily relates to higher weighted average interest rates charged on the Company's Senior Secured Credit Facilities.

Facility Fees and Debt-Related Income (Expense)

During the three months ended March 31, 2023, the Company recognized expense of $2.4 million, which included fees primarily related to the Company's AR Facility. See Note 9, Debt and Credit Agreements, in Part I, Item 1, Financial Statements.

During the three months ended March 31, 2022, the Company recognized expense of $0.5 million, which included fees and other costs related to amending the Company's Senior Secured Credit Facilities.

Defined Benefit Pension Income (Expense)

Defined benefit pension expense for the three months ended March 31, 2023 was $5.3 million, compared with defined benefit pension income of $2.4 million for the three months ended March 31, 2022. This change is primarily related to the impact of higher discount rates applied to the Company's 2023 plan obligations and a lower return on plan assets in the current year due to lower plan asset values at December 31, 2022.

Income Tax Expense

Income tax expense from continuing operations for the three months ended March 31, 2023 and 2022 was $6.9 million and $1.2 million, respectively. Income tax expense increased in 2023 primarily due to the improved business performance for CE and the gain on the relocation of an HE site, as well as the increased disallowed interest expense in the U.S. resulting from higher interest expense on the Company's Senior Secured Credit Facilities.

Income (Loss) from Continuing Operations

Loss from continuing operations was $8.6 million and $6.2 million for the three months ended March 31, 2023 and 2022, respectively. The primary drivers for these increases are noted above.

32

Income (Loss) from Discontinued Operations

The operating results of the former Harsco Rail Segment and costs directly attributable to the sale of the business, have been reflected as discontinued operations in the Company's Condensed Consolidated Statement of Operations for all periods presented. In addition, this caption includes costs directly attributable to retained contingent liabilities of other previously disposed businesses. The increase in income during the three months ended March 31, 2023 was related primarily to the recognition of forward estimated loss provisions of $35.1 million during the three months ended March 31, 2022 for certain contracts in the Rail business, whereas no such losses were recorded during 2023. In addition, business performance increased during the three months ended March 31, 2023 due to higher revenue for railway track maintenance equipment, when compared to the three months ended March 31, 2022. It is possible that the Company's overall estimate of liquidated damages, penalties and costs to complete these contracts may increase, which would result in an additional estimated forward loss provision at such time. See Note 3, Discontinued Operations, in Part I, Item 1, Financial Statements.

Total Other Comprehensive Income (Loss)

Total other comprehensive income was $7.2 million in the three months ended March 31, 2023, compared with total other comprehensive income of $12.0 million in the three months ended March 31, 2022. The primary driver of this change is the fluctuation of the U.S. dollar against certain currencies inclusive of the impact of foreign currency translation of cumulative unrecognized actuarial losses on the Company's pension obligations.

Liquidity and Capital Resources

Cash Flow Summary

The Company currently expects to have sufficient financial liquidity and borrowing capacity to support the strategies within each of its businesses and its current operating and debt service needs. The Company currently expects operational and business needs to be met by cash provided by operations supplemented with borrowings from time to time, principally under the Senior Secured Credit Facilities. The Company supplements the cash provided by operations with borrowings from time to time due to historical patterns of seasonal cash flow and the funding of various projects. The Company regularly assesses capital needs in the context of operational trends and strategic initiatives.

The Company’s cash flows from operating, investing and financing activities, as reflected on the Condensed Consolidated Statements of Cash Flows, are summarized in the following table:

	Three Months Ended
	March 31
(In millions)	2023		2022
Net cash provided (used) by:
Operating activities	$	36.9	$	(34.3)
Investing activities	(22.5)		(26.9)
Financing activities	(2.2)		63.2
Effect of exchange rate changes on cash and cash equivalents, including restricted cash	(1.1)		0.5
Net change in cash and cash equivalents, including restricted cash	$	11.1	$	2.4

Net cash provided by operating activities — Net cash provided by operating activities in the first three months of 2023 was $36.9 million, an increase in cash flows of $71.2 million from the first three months of 2022, attributable to higher year-to-date March 31, 2023 cash net income, compared to the prior year. Additionally, the three months ended March 31, 2023 includes favorable changes in net working capital primarily related to the timing of payments for accounts payable, accrued compensation and defined benefit pension plans, partially offset by an income tax refund received in the prior year.

33

Net cash used by investing activities — Net cash used by investing activities in the first three months of 2023 was $22.5 million, a decrease of $4.4 million from the cash used during the first three months of 2022. The increase is primarily due to decreased 2023 capital expenditures, principally for HE, partially offset by lower proceeds received from the sale of assets during 2023.

Net cash (used) provided by financing activities — Net cash used by financing activities in the first three months of 2023 was $2.2 million, compared to net cash provided by financing activities of $63.2 million the first three months of 2022. The change was primarily due to decreased net cash borrowings of $72.7 million in the first three months of 2023 due principally to improved cash from operating activities.

Sources and Uses of Cash

The Company’s principal sources of liquidity are cash provided by operations on an annual basis and borrowings under the Senior Secured Credit Facilities, augmented by cash proceeds from asset sales. In addition, the Company has other bank credit facilities available throughout the world.  The Company expects to continue to utilize all of these sources to meet future cash requirements for operations and growth initiatives.

AR Facility

The Company maintains a trade receivables securitization facility to accelerate cash flows from trade accounts receivable. Under the AR Facility, the Company and its designated subsidiaries continuously sell their trade receivables as they are originated to the wholly-owned bankruptcy-remote SPE. The SPE transfers ownership and control of qualifying receivables to PNC up to a maximum purchase commitment of $150.0 million. During the three months ended March 31, 2023, the Company received proceeds of $5.0 million related to the facility.

Summary of Senior Secured Credit Facilities and Notes: (In millions)	March 31 2023		December 31 2022
By type:
New Term Loan	$	491.3	$	492.5
Revolving Credit Facility	375.0		370.0
5.75% Senior Notes	475.0		475.0
Total	$	1,341.3	$	1,337.5
By classification:
Current	$	5.0	$	5.0
Long-term	1,336.3		1,332.5
Total	$	1,341.3	$	1,337.5

	March 31, 2023
(In millions)	Facility Limit		Outstanding Balance		Outstanding Letters of Credit		Available Credit
Revolving credit facility (a U.S.-based program)	$	700.0	$	375.0	$	31.8	$	293.2

Debt Covenants

The Senior Secured Credit Facilities contain a consolidated net debt to Consolidated Adjusted EBITDA ratio covenant, which is not to exceed 5.50x for the quarter ended March 31, 2023 and through and including the quarter ending December 31, 2023 and then decreasing quarterly until reaching 4.00x on December 31, 2024. The total net leverage ratio covenant applicable to the third quarter of 2024 and earlier is subject to a 0.50x decrease upon divestiture of the former Harsco Rail segment.  The Company's required coverage of consolidated interest charges is set at a minimum of 2.75x through the end of 2024 (subject to an increase to 3.0x upon closing of the divestiture of the former Harsco Rail Segment). At March 31, 2023, the Company was in compliance with these covenants, as the total net debt to Consolidated Adjusted EBITDA ratio was 4.94x and total interest coverage ratio was 3.02x. Based on balances and covenants in effect at March 31, 2023, the Company could increase net debt by $146.5 million and remain in compliance with these debt covenants. Alternatively, Consolidated Adjusted EBITDA could decrease by $23.4 million or interest expense could increase by $8.5 million and the Company would remain in compliance with these covenants. The Company believes it will continue to maintain compliance with these covenants based on its current outlook.  However, the Company’s estimates of compliance with these covenants could change in the future with a continued deterioration in economic conditions, higher than forecasted interest rate increases or an inability to successfully execute its plans by quarter to realize increased pricing and to implement cost reduction initiatives that substantially mitigate the impacts of inflation and other factors adversely impacting its realized operating margins.

34

Cash Management

The Company has various cash management systems throughout the world that centralize cash in various bank accounts where it is economically justifiable and legally permissible to do so. These centralized cash balances are then redeployed to other operations to reduce short-term borrowings and to finance working capital needs or capital expenditures. Due to the transitory nature of cash balances, they are normally invested in bank deposits that can be withdrawn at will or in very liquid short-term bank time deposits and government obligations. The Company's policy is to use the largest banks in the various countries in which the Company operates. The Company monitors the creditworthiness of banks and, when appropriate, will adjust banking operations to reduce or eliminate exposure to less creditworthy banks.

At March 31, 2023, the Company's consolidated cash and cash equivalents included $85.4 million held by non-U.S. subsidiaries and approximately 16% of the Company's consolidated cash and cash equivalents had regulatory restrictions that would preclude the transfer of funds with and among subsidiaries. Non-U.S. subsidiaries also held $16.1 million of cash and cash equivalents in consolidated strategic ventures. The strategic venture agreements may require strategic venture partner approval to transfer funds with and among subsidiaries. While the Company's remaining non-U.S. cash and cash equivalents can be transferred with and among subsidiaries, the majority of these non-U.S. cash balances will be used to support the ongoing working capital needs and continued growth of the Company's non-U.S. operations.

Recently Adopted and Recently Issued Accounting Standards

Information on recently adopted and recently issued accounting standards is included in Note 2, Recently Adopted and Recently Issued Accounting Standards, in Part I, Item 1, Financial Statements.

ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risks have not changed significantly from those disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

ITEM 4.        CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of March 31, 2023, an evaluation was performed, under the supervision and with the participation of the Company’s management, including the Company's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Rule 13a – 15 under the Securities and Exchange Act of 1934, as amended. Based upon that evaluation, such officers concluded that the Company's disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports it files or submits under the Securities and Exchange Act of 1934, as amended (1) is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and (2) is accumulated and communicated to the Company's management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company's internal control over financial reporting during the Company's most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II — OTHER INFORMATION 

ITEM 1.        LEGAL PROCEEDINGS

Information on legal proceedings is included in Note 12, Commitments and Contingencies, in Part I, Item 1, Financial Statements.

35

ITEM 1A.     RISK FACTORS

The Company's risk factors as of March 31, 2023 have not changed materially from those described in Part 1, Item 1A, "Risk Factors" of the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

ITEM 2.        UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

36

ITEM 6.        EXHIBITS

The following exhibits are included as part of this report by reference:

Exhibit Number	Description
31.1	Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Chairman, President and Chief Executive Officer).
31.2	Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Chief Financial Officer).
32	Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Chairman, President and Chief Executive Officer and Chief Financial Officer).
101.Def	Definition Linkbase Document
101.Pre	Presentation Linkbase Document
101.Lab	Labels Linkbase Document
101.Cal	Calculation Linkbase Document
101.Sch	Schema Document
101.Ins	Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

37

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HARSCO CORPORATION

(Registrant)

DATE	May 3, 2023	/s/ PETER F. MINAN
		Peter F. Minan
		Senior Vice President and Chief Financial Officer
		(On behalf of the registrant and as Principal Financial Officer)
DATE	May 3, 2023	/s/ SAMUEL C. FENICE
		Samuel C. Fenice
		Vice President and Corporate Controller
		(Principal Accounting Officer)

38

EX-31.1

Exhibit 31.1

HARSCO CORPORATION

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR 15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, F. Nicholas Grasberger, III, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Harsco Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. 

May 3, 2023

/s/ F. NICHOLAS GRASBERGER III

F. Nicholas Grasberger III

Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

HARSCO CORPORATION

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR 15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Peter F. Minan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Harsco Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. 

May 3, 2023

/s/ PETER F. MINAN

Peter F. Minan

Senior Vice President and Chief Financial Officer

EX-32

Exhibit 32

HARSCO CORPORATION

CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Harsco Corporation (the "Company") on Form 10-Q for the period ending March 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of our knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 3, 2023

/s/ F. NICHOLAS GRASBERGER III

F. Nicholas Grasberger III

Chairman, President and Chief Executive Officer

/s/ PETER F. MINAN

Peter F. Minan

Senior Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Harsco Corporation and will be retained by Harsco Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	Apr. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-03970
Entity Registrant Name	HARSCO CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-1483991
Entity Address, Address Line One	Two Logan Square100-120 North 18th Street, 17th Floor,
Entity Address, City or Town	Philadelphia,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19103
City Area Code	267
Local Phone Number	857-8715
Title of 12(b) Security	Common stock, par value $1.25 per share
Trading Symbol	HSC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		79,738,373
Entity Central Index Key	0000045876
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 91,759	$ 81,332
Restricted cash	4,477	3,762
Trade accounts receivable, net	281,777	264,428
Other receivables	25,832	25,379
Inventories	84,705	81,375
Prepaid expenses	24,878	30,583
Current portion of assets held-for-sale	264,051	266,335
Other current assets	15,181	14,541
Total current assets	792,660	767,735
Property, plant and equipment, net	665,191	656,875
Right-of-use assets, net	100,199	101,253
Goodwill	763,013	759,253
Intangible assets, net	345,595	352,160
Deferred income tax assets	18,422	17,489
Assets held-for-sale	69,554	70,105
Other assets	70,360	65,984
Total assets	2,824,994	2,790,854
Current liabilities:
Short-term borrowings	2,142	7,751
Current maturities of long-term debt	13,245	11,994
Accounts payable	225,314	205,577
Accrued compensation	50,193	43,595
Income taxes payable	3,987	3,640
Current portion of operating lease liabilities	26,104	25,521
Current portion of liabilities of assets held-for-sale	159,069	159,004
Other current liabilities	138,224	140,199
Total current liabilities	618,278	597,281
Long-term debt	1,346,206	1,336,995
Retirement plan liabilities	48,013	46,601
Operating lease liabilities	74,149	75,246
Liabilities of assets held-for-sale	8,942	9,463
Environmental liabilities	26,481	26,880
Deferred tax liabilities	28,426	30,069
Other liabilities	50,547	45,277
Total liabilities	2,201,042	2,167,812
COMMITMENTS AND CONTINGENCIES
HARSCO CORPORATION STOCKHOLDERS' EQUITY
Common stock	145,843	145,448
Additional paid-in capital	229,218	225,759
Accumulated other comprehensive loss	(560,842)	(567,636)
Retained earnings	1,604,916	1,614,441
Treasury stock	(849,678)	(848,570)
Total Harsco Corporation stockholders’ equity	569,457	569,442
Noncontrolling interests	54,495	53,600
Total equity	623,952	623,042
Total liabilities and equity	$ 2,824,994	$ 2,790,854

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues from continuing operations:
Revenues	$ 495,653	$ 452,797
Costs and expenses from continuing operations:
Cost of sales	400,688	377,019
Selling, general and administrative expenses	71,935	69,153
Research and development expenses	176	56
Other (income) expenses, net	(6,151)	(1,179)
Total costs and expenses	466,648	445,049
Operating income (loss) from continuing operations	29,005	7,748
Interest income	1,455	644
Interest expense	(24,328)	(15,092)
Facility fees and debt-related income (expense)	(2,363)	(532)
Defined benefit pension income (expense)	(5,335)	2,410
Income (loss) from continuing operations before income taxes and equity income	(1,566)	(4,822)
Income tax benefit (expense) from continuing operations	(6,923)	(1,221)
Equity income (loss) of unconsolidated entities, net	(133)	(131)
Income (loss) from continuing operations	(8,622)	(6,174)
Discontinued operations:
Income (loss) from discontinued businesses	619	(39,097)
Income tax benefit (expense) from discontinued businesses	(587)	6,591
Income (loss) from discontinued operations, net of tax	32	(32,506)
Net income (loss)	(8,590)	(38,680)
Less: Net (income) loss attributable to noncontrolling interests	(935)	(1,159)
Net income (loss) attributable to Harsco Corporation	(9,525)	(39,839)
Amounts attributable to Harsco Corporation common stockholders:
Income (loss) from continuing operations, net of tax	(9,557)	(7,333)
Income (loss) from discontinued operations, net of tax	32	(32,506)
Net income (loss) attributable to Harsco Corporation	$ (9,525)	$ (39,839)
Weighted-average shares of common stock outstanding (in shares)	79,633	79,363
Basic earnings (loss) per common share attributable to Harsco Corporation common stockholders:
Continuing operations (in dollars per share)	$ (0.12)	$ (0.09)
Discontinued operations (in dollars per share)	0.00	(0.41)
Basic earnings (loss) per share attributable to Harsco Corporation common stockholders (in dollars per share)	$ (0.12)	$ (0.50)
Diluted weighted-average shares of common stock outstanding (in shares)	79,633	79,363
Diluted earnings (loss) per common share attributable to Harsco Corporation common stockholders:
Continuing operations (in dollars per share)	$ (0.12)	$ (0.09)
Discontinued operations (in dollars per share)	0.00	(0.41)
Diluted earnings (loss) per share attributable to Harsco Corporation common stockholders (in dollars per share)	$ (0.12)	$ (0.50)

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (8,590)	$ (38,680)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of deferred income taxes	12,446	(2,847)
Net gain (loss) on cash flow hedging instruments, net of deferred income taxes	(2,560)	1,140
Pension liability adjustments, net of deferred income taxes	(2,735)	13,718
Unrealized gain (loss) on marketable securities, net of deferred income taxes	1	(3)
Total other comprehensive income (loss)	7,152	12,008
Total comprehensive income (loss)	(1,438)	(26,672)
Less: Comprehensive (income) loss attributable to noncontrolling interests	(1,293)	(677)
Comprehensive income (loss) attributable to Harsco Corporation	$ (2,731)	$ (27,349)

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, deferred income taxes	$ 1,472	$ (1,838)
Net gain (loss) on cash flow hedging instruments, deferred income taxes	847	(330)
Pension liability adjustments, deferred income taxes	(418)	(352)
Unrealized gain (loss) on marketable securities, deferred income taxes	$ 0	$ 0

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income (loss)	$ (8,590)	$ (38,680)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	33,039	33,604
Amortization	7,965	8,586
Deferred income tax (benefit) expense	(56)	(4,275)
Equity (income) loss of unconsolidated entities, net	133	131
Dividends from unconsolidated entities	0	178
Other, net	1,009	259
Changes in assets and liabilities, net of acquisitions and dispositions of businesses:
Accounts receivable	(14,533)	(15,364)
Income tax refunds receivable, reimbursable to seller	0	7,687
Inventories	(8,534)	(4,610)
Contract assets	11,698	4,843
Right-of-use assets	7,842	7,076
Accounts payable	17,735	1,655
Accrued interest payable	(6,998)	(7,393)
Accrued compensation	7,343	(5,692)
Advances on contracts	(5,591)	(7,808)
Operating lease liabilities	(7,202)	(7,063)
Retirement plan liabilities, net	814	(14,519)
Other assets and liabilities	838	7,070
Net cash provided (used) by operating activities	36,912	(34,315)
Cash flows from investing activities:
Purchases of property, plant and equipment	(22,146)	(32,958)
Proceeds from sales of assets	823	5,976
Expenditures for intangible assets	(36)	(54)
Net proceeds (payments) from settlement of foreign currency forward exchange contracts	(1,212)	1,061
Payments for settlements of interest rate swaps	0	(1,062)
Other investing activities, net	32	124
Net cash used by investing activities	(22,539)	(26,913)
Cash flows from financing activities:
Short-term borrowings, net	(3,029)	2,051
Current maturities and long-term debt:
Additions	59,000	72,005
Reductions	(57,200)	(2,566)
Stock-based compensation - Employee taxes paid	(930)	(1,377)
Payment of contingent consideration	0	(6,915)
Net cash (used) provided by financing activities	(2,159)	63,198
Effect of exchange rate changes on cash and cash equivalents, including restricted cash	(1,072)	455
Net increase in cash and cash equivalents, including restricted cash	11,142	2,425
Cash and cash equivalents, including restricted cash, at beginning of period	85,094	87,128
Cash and cash equivalents, including restricted cash, at end of period	96,236	89,553
Supplementary cash flow information:
Change in accrual for purchases of property, plant and equipment included in accounts payable	$ 7,524	$ (745)

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock Issued	Common Stock Treasury	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Noncontrolling Interests
Beginning balance at Dec. 31, 2021	$ 805,770	$ 144,883	$ (846,622)	$ 215,528	$ 1,794,510	$ (560,139)	$ 57,610
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(38,680)				(39,839)		1,159
Total other comprehensive income	12,008					12,490	(482)
Vesting of restricted stock units and other stock grants, net	(1,632)	378	(1,632)	(378)
Amortization of unearned portion of stock-based compensation, net of forfeitures	3,629			3,629
Ending balance at Mar. 31, 2022	781,095	145,261	(848,254)	218,779	1,754,671	(547,649)	58,287
Beginning balance at Dec. 31, 2022	623,042	145,448	(848,570)	225,759	1,614,441	(567,636)	53,600
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(8,590)				(9,525)		935
Total other comprehensive income	7,152					6,794	358
Sale of subsidiary shares to noncontrolling interest				398			(398)
Vesting of restricted stock units and other stock grants, net	(1,108)	395	(1,108)	(395)
Amortization of unearned portion of stock-based compensation, net of forfeitures	3,456			3,456
Ending balance at Mar. 31, 2023	$ 623,952	$ 145,843	$ (849,678)	$ 229,218	$ 1,604,916	$ (560,842)	$ 54,495

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statement of Stockholders' Equity [Abstract]
Total other comprehensive income, deferred income taxes	$ 1,901	$ (2,520)
Vesting of restricted stock units and other stock grants (in shares)	177,574	176,253

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Basis of Presentation

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The Company has prepared these unaudited condensed consolidated financial statements in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the SEC. Accordingly, the unaudited condensed consolidated financial statements do not include all information and disclosure required by U.S. GAAP for annual financial statements. The December 31, 2022 Condensed Consolidated Balance Sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2022 audited consolidated financial statements.  These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in these unaudited condensed consolidated financial statements.

Liquidity

The Company’s cash flow forecasts, combined with existing cash and cash equivalents and borrowings available under the Senior Secured Credit Facilities, indicate sufficient liquidity to fund the Company’s operations for at least the next twelve months. As such, the Company’s unaudited consolidated financial statements have been prepared on the basis that it will continue as a going concern for a period extending beyond twelve months from the date the unaudited consolidated financial statements are issued. This assessment includes the expected ability to meet required financial covenants and the continued ability to draw down on the Senior Secured Credit Facilities (see Note 9).

Reclassifications

Certain reclassifications have been made to prior year amounts to conform with current year classifications.

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Recently Adopted and Recently Issued Accounting Standards

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Recently Adopted and Recently Issued Accounting Standards

Recently Adopted and Recently Issued Accounting Standards

The following accounting standards have been adopted in 2023:

On January 1, 2023, the Company adopted changes issued by the FASB that clarify that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with accounting standards governing revenue from contracts with customers. The adoption of these changes did not have an immediate impact on the Company's consolidated financial statements, but will be applied prospectively to future business combinations.

On January 1, 2023, the Company adopted changes issued by the FASB that require a buyer in a supplier finance program, also referred to as reverse factoring, payables finance, or structured payables arrangements, to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude, by disclosing qualitative and quantitative information about the program. At March 31, 2023, the Company concluded that the adoption of these changes did not have a material impact on the Company's condensed consolidated financial statements or the accompanying notes to the condensed consolidated financial statements.

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Dispositions

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Dispositions

Discontinued Operations

Harsco Rail Segment

The Company is in the process of selling its Rail business with a sale expected to occur in 2023. The intention to sell the business was first announced in the fourth quarter of 2021. The sales process was delayed in 2022 due to certain macroeconomic conditions, including rising interest rates. The former Harsco Rail Segment has historically been a separate reportable segment with primary operations in the United States, Europe and Asia Pacific.

The former Harsco Rail Segment's balance sheet positions as of March 31, 2023 and December 31, 2022 are presented as Assets held-for-sale and Liabilities of assets held-for-sale in the Condensed Consolidated Balance Sheets and are summarized as follows:

(in thousands)	March 31 2023		December 31 2022
Trade accounts receivable, net	$	39,743	$	41,049
Other receivables	4,481		4,037
Inventories	111,447		105,256
Current portion of contract assets	73,204		84,848
Other current assets	34,982		30,950
Property, plant and equipment, net	41,919		41,004
Right-of-use assets, net	5,292		5,635
Goodwill	13,026		13,026
Intangible assets, net	2,685		2,746
Deferred income tax assets	5,825		6,887
Other assets	806		807
Total Rail assets included in Assets held-for-sale	$	333,410	$	336,245
Accounts payable	$	56,212	$	49,083
Accrued compensation	2,384		1,211
Current portion of operating lease liabilities	2,649		2,635
Current portion of advances on contracts	37,356		45,037
Other current liabilities	60,468		61,039
Operating lease liabilities	2,800		3,121
Deferred tax liabilities	5,688		5,480
Other liabilities	454		861
Total Rail liabilities included in Liabilities of assets held-for-sale	$	168,011	$	168,467

The results of the former Harsco Rail Segment are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for the three months ended March 31, 2023, and 2022. Certain key selected financial information included in Income (loss) from discontinued operations, net of tax, for the former Harsco Rail Segment is as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Amounts directly attributable to the former Harsco Rail Segment:
Service revenues	$	7,720	$	6,710
Product revenues (a)	57,332		45,113
Cost of services sold	5,626		4,295
Cost of products sold	45,743		72,546
Income (loss) from discontinued businesses	2,751		(35,895)
Additional amounts allocated to the former Harsco Rail Segment:
Selling, general and administrative expenses (b)	$	477	$	1,649

(a) The increase in product revenues and decrease in cost of products sold for 2023 compared with 2022 is due, in part, to liquidated damages and penalties on certain long-term contracts, as discussed below.

(b) The Company includes costs to sell the Rail business in the caption Income (loss) from discontinued businesses in the Condensed Consolidated Statements of Operations.

The Company has retained corporate overhead expenses previously allocated to the former Harsco Rail Segment of $1.0 million for each of the three months ended March 31, 2023, and 2022, as part of Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations.

The Company's former Harsco Rail Segment is currently manufacturing highly-engineered equipment under large long-term fixed-price contracts with SBB, Network Rail, and Deutsche Bahn. As previously disclosed, the Company recognized estimated forward loss provisions in 2022 related to these contracts as additional costs in building the machines and continued supply chain related delays were encountered. No additional such provisions were recognized in 2023.

For the Network Rail contracts, the Company encountered supply chain delays in the build of the initial machine, and there were further changes to the production schedule based on the manufacturing experience gained from assembling the first unit during the first quarter of 2022 which had a cascading effect on the delivery schedule of remaining machines. In the first quarter of 2022, the Company recorded additional forward loss provisions of $24.2 million, principally for additional estimated contractual liquidated damages which are recorded as a reduction to revenue. The Company continues to negotiate with Network Rail regarding a reduction to these liquidated damages, which could result in additional favorable or unfavorable adjustments in future periods.

For the Deutsche Bahn contract, in March 2022 a European-based supplier of critical components to the project indicated it would be significantly late on the delivery of these components to the project, which has the impact of delaying the overall delivery schedule for the project. In the first quarter of 2022, the Company recorded an additional $7.4 million estimated forward loss provision due principally to the estimated contractual penalties that would be triggered by this delay and thus recorded as a reduction of revenue. Additionally, this supplier filed for bankruptcy during the second quarter of 2022, although it continues to operate. Should this supplier cease operations, the Company may incur further losses if there are additional costs to change suppliers or an inability to recover the value of prepayments made to the supplier, as well as additional penalties and damages under the contract with Deutsche Bahn in the event of further production delays.

For the second SBB contract, the Company recorded an additional $3.5 million forward estimated loss provision in the first quarter of 2022 due to additional supply chain delays and cost overruns.

The estimated forward loss provisions represent the Company's best estimate based on currently available information. It is possible that the Company's overall estimate of liquidated damages, penalties and costs to complete these contracts may change, which would result in an additional estimated forward loss provision at such time.

As of March 31, 2023, the contracts with Network Rail, Deutsche Bahn and the second contract with SBB are 51%, 36% and 85% complete, respectively. The first contract with SBB has been completed.

The following is selected financial information included on the Condensed Consolidated Statements of Cash Flows attributable to the former Harsco Rail Segment:

	Three Months Ended March 31
(In thousands)	2023	2022
Cash flows from investing activities
Purchases of property, plant and equipment	665	506

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Accounts Receivable and Note Receivable

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Accounts Receivable and Note Receivable

Accounts Receivable and Note Receivable

Accounts receivable consist of the following:

(In thousands)	March 31 2023		December 31 2022
Trade accounts receivable	$	290,648	$	272,775
Less: Allowance for expected credit losses	(8,871)		(8,347)
Trade accounts receivable, net	$	281,777	$	264,428
Other receivables (a)	$	25,832	$	25,379

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

The provision for expected credit losses related to trade accounts receivable was as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Provision for expected credit losses related to trade accounts receivable	$	507	$	325

At March 31, 2023, $10.6 million of the Company's trade accounts receivable were past due by twelve months or more, with $3.3 million of this amount reserved. There has been a recent increase in aged receivables for certain international customers within the HE segment. Collection of the remaining balance is still ultimately expected.

Accounts Receivable Securitization Facility

In June 2022, the Company and its SPE entered into an AR Facility with PNC Bank, National Association ("PNC") to accelerate cash flows from trade accounts receivable. The AR Facility has a three-year term. The maximum purchase commitment by PNC is $150.0 million.

The total outstanding balance of trade receivables that have been sold and derecognized by the SPE is $150.0 million and $145.0 million as of March 31, 2023 and December 31, 2022, respectively. The SPE owned $82.4 million and $69.7 million of trade receivables as of March 31, 2023 and December 31, 2022, respectively, which is included in the caption Trade accounts receivable, net, on the Condensed Consolidated Balance Sheets. See Note 9, Debt and Credit Agreements, for AR Facility expenses incurred.

The Company received proceeds of $5.0 million from the AR Facility in the first quarter of 2023.

Factoring Arrangements

The Company maintains factoring arrangements with a financial institution to sell certain accounts receivable that are also accounted for as a sale of financial assets. The following table reflects balances for net amounts sold and program capacities for the arrangements:

(In millions)	March 31 2023		December 31 2022
Net amounts sold under factoring arrangements	$	21.7	$	17.3
Program capacities	32.0		31.4

Note Receivable

In January 2020, the Company sold IKG for $85.0 million including cash and a note receivable, subject to post-closing adjustments. The note receivable from the buyer has a face value of $40.0 million, bearing interest at 2.50%, that is paid in kind and matures on January 31, 2027. Any unpaid principal, along with any accrued but unpaid interest is payable at maturity. Prepayment is required in case of a change in control or a percentage of excess cash flow, as defined in the note receivable agreement. Because there are no scheduled payments under the terms of the note receivable, the balance is not classified as current as of March 31, 2023 and December 31, 2022, and is included in the caption Other assets on the Condensed Consolidated Balance Sheet.

(In millions)	March 31 2023		December 31 2022
Note receivable, at amortized cost	$	24.3	$	23.9
Note receivable, fair value	24.8		23.8

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Inventories

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of the following:

(In thousands)	March 31 2023		December 31 2022
Finished goods	$	12,884	$	11,809
Work-in-process	1,776		2,030
Raw materials and purchased parts	29,270		27,946
Stores and supplies	40,775		39,590
Total inventories	$	84,705	$	81,375

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Property, Plant and Equipment

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment consist of the following:

(In thousands)	March 31 2023		December 31 2022
Land	$	71,987	$	72,020
Land improvements	16,843		16,750
Buildings and improvements	219,332		217,926
Machinery and equipment	1,539,171		1,513,238
Uncompleted construction	85,421		84,472
Gross property, plant and equipment	1,932,754		1,904,406
Less: Accumulated depreciation	(1,267,563)		(1,247,531)
Property, plant and equipment, net	$	665,191	$	656,875

In the third quarter of 2020, a customer of HE in China ceased steel making operations at its steel mill site in order to relocate the operations to a new site, as a result of a government mandate to improve environmental conditions of the area. The Company continues to provide services to the same customer at the new site. The net book value of HE's idled equipment associated with the previous location is approximately $18 million. The customer has entered into an agreement with the government where it will receive compensation for the losses the customer has incurred as a result of the forced shutdown. The Company has continued discussions with the customer regarding compensation, which are expected to be protracted. While the customer initially indicated that they will not provide compensation, the Company and the customer continue to discuss. In addition, there may be other avenues of pursuing recovery, including seeking relief directly from the local government. At this point, considering the ongoing discussions with the customer, and other avenues, the Company believes it will recover the book value of its equipment and thus does not believe it has an asset impairment as of March 31, 2023. However, the Company will continue to evaluate changes in facts and circumstances and will record any impairment charge, when and if indicated.

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Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

Leases

The components of lease expense were as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Finance leases:
Amortization expense	$	1,541	$	978
Interest on lease liabilities	354		183
Operating leases	8,554		8,069
Variable and short-term lease expense	12,086		13,343
Sublease income	(2)		(2)
Total lease expense from continuing operations	$	22,533	$	22,571

As of March 31, 2023, the Company had additional operating leases for vehicles that had not yet commenced with estimated operating lease obligations of approximately $9 million to be recognized upon anticipated lease commencements in the second and third quarters of 2023.

Leases

Leases

The components of lease expense were as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Finance leases:
Amortization expense	$	1,541	$	978
Interest on lease liabilities	354		183
Operating leases	8,554		8,069
Variable and short-term lease expense	12,086		13,343
Sublease income	(2)		(2)
Total lease expense from continuing operations	$	22,533	$	22,571

As of March 31, 2023, the Company had additional operating leases for vehicles that had not yet commenced with estimated operating lease obligations of approximately $9 million to be recognized upon anticipated lease commencements in the second and third quarters of 2023.

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Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets The Company tests for goodwill impairment annually, or more frequently if indicators of impairment exist, or if a decision is made to dispose of a business.  The Company performs its annual goodwill impairment test as of October 1 and monitors for triggering events on an ongoing basis. During the three months ended March 31, 2023, the Company determined that there were no events or indicators present that would indicate that it was more-likely-than-not that its reporting units' fair values were less than their carrying amounts, which would require a further interim impairment analysis.  However, a continued economic downturn, including continued cost inflation and labor shortages, as well as rising interest rates, could impact the Company's future projected cash flows and discount rates used to estimate fair value, which could result in an impairment charge to any of the Company's reporting units in a future period.

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Debt and Credit Agreements

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt and Credit Agreements

Debt and Credit Agreements

Long-term debt consists of the following:

(In thousands)	March 31 2023		December 31 2022
Senior Secured Credit Facilities:
New Term Loan	$	491,250	$	492,500
Revolving Credit Facility	375,000		370,000
5.75% Senior Notes	475,000		475,000
Other financing payable (including finance leases) in varying amounts	32,584		26,661
Total debt obligations	1,373,834		1,364,161
Less: deferred financing costs	(14,383)		(15,172)
Total debt obligations, net of deferred financing costs	1,359,451		1,348,989
Less: current maturities of long-term debt	(13,245)		(11,994)
Long-term debt	$	1,346,206	$	1,336,995

At March 31, 2023, the Company was in compliance with its debt covenants under the Senior Secured Credit Facilities, with a total net debt to Consolidated Adjusted EBITDA ratio of 4.94x (below the 5.50x maximum permitted for the quarter ended March 31, 2023) and a total interest coverage ratio of 3.02x (above the 2.75x minimum permitted for the quarter ended March 31, 2023). The Company believes it will continue to maintain compliance with these covenants based on its current outlook. However, the Company's estimates of compliance with these covenants could change in the future with a continued deterioration in economic conditions, higher than forecasted interest rate increases or an inability to successfully execute its plans by quarter to realize increased pricing and to implement cost reduction initiatives that substantially mitigate the impacts of inflation and other factors adversely impacting its realized operating margins.

Facility Fees and Debt-Related Income (Expense)

The components of the Condensed Consolidated Statements of Operations caption Facility fees and debt-related income (expense) were as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Unused debt commitment and amendment fees	$	(12)	$	(532)
Securitization and factoring fees	(2,351)		—
Facility fees and debt-related income (expense)	$	(2,363)	$	(532)

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Employee Benefit Plans

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

	Three Months Ended
	March 31
Defined Benefit Pension Plans Net Periodic Pension Cost (Benefit)	U.S. Plans				International Plans
(In thousands)	2023		2022		2023		2022
Service costs	$	—	$	—	$	307	$	432
Interest costs	2,543		1,429		7,414		4,394
Expected return on plan assets	(1,750)		(2,699)		(7,657)		(10,384)
Recognized prior service costs	—		—		114		120
Recognized actuarial losses	1,151		1,183		3,519		3,544
Defined benefit pension plans net periodic pension cost (benefit)	$	1,944	$	(87)	$	3,697	$	(1,894)

	Three Months Ended
Company Contributions	March 31
(In thousands)	2023		2022
Defined benefit pension plans (U.S.)	$	420	$	446
Defined benefit pension plans (International)	4,183		11,357
Multiemployer pension plans	484		457
Defined contribution pension plans	3,229		3,794

The Company's estimate of expected cash contributions to be paid during the remainder of 2023 for the U.S. and international defined benefit pension plans is $1.4 million and $19.7 million, respectively.

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Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes 

Income tax expense related to continuing operations for the three months ended March 31, 2023 and March 31, 2022 was $6.9 million and $1.2 million, respectively. Income tax expense increased in 2023 primarily due to improved business performance in the CE segment and the gain on the relocation of an HE site, as well as the increased disallowed interest expense in the U.S. resulting from higher interest expense on the Company's Senior Secured Credit Facilities.

The Company has historically calculated its quarterly tax provision based on its best estimate of the full year tax rate applicable to the quarter. In the first quarter 2023, due to the insignificant amount of pre-tax book loss relative to the size of permanent book-tax differences and a varying net income/(loss) pattern projected for the year, the Company’s tax provision estimate was determined using an actual year-to-date method. In the prior year, the estimate was based on the forecasted full year rate.

The reserve for uncertain tax positions on March 31, 2023 was $4.2 million, including interest and penalties.  Within the next twelve months, it is reasonably possible that $1.3 million unrecognized income tax benefits will be recognized upon settlement of tax examinations and the expiration of various statutes of limitations.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Environmental        

The Company is involved in a number of environmental remediation investigations and cleanups and, along with other companies, has been identified as a “potentially responsible party” for certain byproduct disposal sites.  While each of these matters is subject to various uncertainties, it is probable that the Company will agree to make payments toward funding certain of these activities, and it is possible that some of these matters will be decided unfavorably to the Company.  The Company has evaluated its potential liability and its financial exposure is dependent upon such factors as the continuing evolution of environmental laws and regulatory requirements, the availability and application of technology, the allocation of cost among potentially responsible parties, the years of remedial activity required and the remediation methods selected. 

The Company evaluates its liability for future environmental remediation costs on a quarterly basis. Although actual costs to be incurred at identified sites in future periods may vary from the estimates (given inherent uncertainties in evaluating environmental exposures), the Company does not expect that any costs that are reasonably possible to be incurred by the Company in connection with environmental matters in excess of the amounts accrued would have a material adverse effect on the Company's financial condition, results of operations or cash flows.

The following table summarizes information related to the location and undiscounted amount of the Company's environmental liabilities:

(In thousands)	March 31 2023		December 31 2022
Current portion of environmental liabilities (a)	$	6,859	$	7,120
Long-term environmental liabilities	26,481		26,880
Total environmental liabilities	$	33,340	$	34,000

(a)    The current portion of environmental liabilities is included in the caption Other current liabilities on the Condensed Consolidated Balance Sheets.

Legal Proceedings

In the ordinary course of business, the Company is a defendant or party to various claims and lawsuits, including those discussed below. Unless stated otherwise below, the Company has not determined a loss to be probable or estimable for these legal proceedings.

On March 28, 2018, the United States Environmental Protection Agency (the “EPA”) conducted an inspection of ESOL’s off-site waste management facility in Detroit, MI. On November 23, 2021, the EPA proposed a civil penalty of $390,092 as part of a proposed Administrative Consent Order for alleged improper air emissions at the site. The allegations in the proposed Administrative Consent Order and civil penalty relate exclusively to the period prior the Company’s purchase of the ESOL business. The Company is vigorously contesting the allegations. While it is the Company's position that any loss related to this issue will be recoverable under indemnity rights under the ESOL purchase agreement and representations and warranties insurance policies purchased by the Company, there can be no assurance that the Company's position will ultimately prevail. On August 31, 2022, the parties executed the first of a series of Tolling Agreements, which excludes the period from March 1, 2022 through June 30, 2023, for the purposes of calculating the statute of limitations and other related defenses.

On January 27, 2020, the U.S. EPA issued a Notice of Potential Liability to the Company, along with several other companies, concerning the Newtown Creek Superfund Site located in Kings and Queens Counties in New York. The Notice alleges certain facilities formerly owned or operated by subsidiaries of the Company may have resulted in the discharge of hazardous substances into Newtown Creek or its Dutch Kills tributary. The site has been subject to CERCLA response activities since approximately 2011. The U.S. EPA expects to propose a sitewide cleanup plan no sooner than 2024 and announced in July 2021 that it would defer its decision on a potential early action response for the lower two miles of the Creek until the sitewide studies are completed. The Company is one of approximately twenty (20) Potentially Responsible Parties ("PRPs") that have received notices, though it is believed other PRPs may exist. The Company vigorously contests the allegations of the Notice and currently does not believe that this matter will have a material effect on the Company’s financial position or results from operations.

On June 25 and 26, 2018, the DTSC conducted a compliance enforcement inspection of ESOL’s facility in Rancho Cordova, California, which was then owned by Stericycle, Inc. On February 14, 2020, the DTSC filed an action in the Superior Court for the State of California, Sacramento Division, alleging violations of California’s Hazardous Waste Control Law and the facility’s hazardous waste permit arising from the inspection. On August 27, 2020 the DTSC issued a Notice of Denial of Hazardous Waste Facility Permit Application, denying the renewal of the facility's hazardous waste permit. The Company has exhausted its legal challenges to the denial of the Hazardous Waste facility permit, and the hazardous waste facility is in the process of closing. The Company continues to utilize the site for non-hazardous waste and is evaluating additional potential alternate uses for the site. The DTSC investigation and compliance issues leading to the compliance tier assignment were ongoing well before the Company's acquisition of the ESOL business, and the Company was aware of the investigation and many of the issues raised in the investigation at the time of the purchase. Accordingly, the Company is indemnified for certain fines and other costs and expenses associated with this matter by Stericycle, Inc. The Company has not accrued any amounts in respect of these alleged violations and cannot estimate the reasonably possible loss or the range of reasonably possible losses that it may incur.

The Company has had ongoing meetings with the SCE over processing salt cakes, a processing byproduct, stored at the Al Hafeerah site. The Company’s Bahrain operations that produced the salt cakes has ceased operations. An Environmental Impact Assessment and Technical Feasibility Study for facilities to process the salt cakes was approved by the SCE during the first quarter of 2018. Commissioning of the facilities was completed during the third quarter of 2021 and the processing of the salt cakes has commenced. The Company's current reserve of $6.0 million at March 31, 2023 continues to represent the Company's best estimate of the ultimate costs to be incurred to resolve this matter. The Company continues to evaluate this reserve and any future change in estimated costs which could be material to the Company’s results of operations in any one period.

On July 27, 2018, Brazil’s Federal and Rio de Janeiro State Public Prosecution Offices (MPF and MPE) filed a Civil Public Action against one of the Company's customers (CSN), the Company’s Brazilian subsidiary, the Municipality of Volta Redonda, Brazil, and the Instituto Estadual do Ambiente (local environmental protection agency) seeking the implementation of various measures to limit and reduce the accumulation of customer-owned slag at the site in Brazil. On August 6, 2018 the 3rd Federal Court in Volta Redonda granted the MPF and MPE an injunction against the same parties requiring, among other things, CSN and the Company’s Brazilian subsidiary to limit the volume of slag sent to the site. Because the customer owns the site and the slag located on the site, the Company believes that complying with this injunction is the steel producer’s responsibility.  On March 18, 2019 the Court issued an order fining the Company 5,000 Brazilian reais per day (or approximately $1 thousand per day) and CSN 20,000 Brazilian reais per day (or approximately $4 thousand per day) until the requirements of the injunction are met. On November 1, 2019 the Court issued an additional order increasing the fines assessed to the Company to 25,000 Brazilian reais per day (or approximately $5 thousand per day) and raising the fines assessed to CSN to 100,000 Brazilian reais per day (or approximately $20 thousand per day). The Court also assessed an additional joint fine of 10,000,000 Brazilian reais (or approximately $2.0 million) against CSN and the Company. The Company is appealing the fines and the underlying injunction.  Both the Company and CSN continue to have discussions with the Prosecution Offices and governmental authorities on the injunction and the possible resolution of the underlying case. Beginning on March 25, 2022, the Courts entered a series of orders suspending the litigation proceedings as well as the accrual of interest and penalties while the parties discuss a possible resolution of the matter. The Company does not believe that a loss relating to this matter is probable or estimable at this point.

On October 19, 2018, local environmental authorities issued an enforcement action against the Company concerning the Company’s operations at a customer site in Ijmuiden, Netherlands. The enforcement action alleged violations of the Company’s environmental permit at the site, which restricts the release of any visible dust emissions. On January 12, 2022, the Administrative Supreme Court upheld the Company’s challenge of these enforcement actions as they relate to the slag tipping area of the site. As a result, all fines asserted against the Company to date have been invalidated and all fines paid to date have been reimbursed. This order is not appealable. On or about October 14, 2021, the Company received a subpoena and two indictments on this matter before the Amsterdam District Court in the Netherlands. The Amsterdam Public Prosecutor’s Office issued the two indictments against the Company, alleging violations in connection with dust releases and/or events alleged to have occurred in 2018 through May 2020 at the site. The action cites provisions which permit fines for the alleged infractions and seeks €100,000 in fines with a smaller amount held in abeyance. On February 2, 2022, the prosecutor announced that they would further investigate residents’ claims related to this matter. On February 25, 2022, the Amsterdam District Court ruled that the Company was liable for only one alleged violation and that this alleged violation was unintentional. The court issued a fine of €5,000, to be held in abeyance. Both the Company and the Public Prosecutor’s Office have appealed this ruling. The Company is vigorously contesting all allegations against it and is also working with its customer to ensure the control of emissions. The Company has contractual indemnity rights from its customer that it believes will substantially cover any fines or penalties.

On November 5, 2020, a worker suffered a fatal injury at a site owned by the Company’s customer, Gerdau Ameristeel US, Inc., in Midlothian, TX. Although the Company was not directly involved in the accident, the worker was employed by a sub-contractor of a sub-contractor of the Company. The worker’s family filed suit in the 125th Judicial District Court of Harris County, TX against multiple parties, including the Company, seeking monetary damages. By a letter agreement dated December 1, 2022, the worker's family agreed to settle their claims against the Company and Gerdau. The parties are working to complete a formal settlement agreement. The Company has recorded a liability for its insurance deductible of $5.0 million and an indemnification receivable from its customer for the recovery of certain losses based upon the contractual indemnity rights. There can be no assurances that the Company's position will ultimately prevail; however, any financial statement impact is not expected to be material.

On March 22, 2022, the U.S. EPA issued a Notice of Intent to File an Administrative Complaint (NOI) alleging violations of the federal Emergency Planning and Community Right-to-Know Act at the Company’s facilities in Tacoma, WA and Kent, WA. The NOI relates exclusively or almost exclusively to the period when Stericycle owned and operated the sites. The NOI proposes a penalty of $3,000,000. The Company is currently reviewing the veracity of the allegations and the corresponding proposed penalty amount and has recorded a liability of $600,000 as its best estimate to resolve this matter. While it is the Company’s position that it has recourse for some or all liabilities, if any, that arise from this matter under the ESOL purchase agreement and representations and warranties insurance policies purchased by the Company, there can be no assurances that the Company’s position will ultimately prevail.

On March 21, 2022, the Company received a draft penalty matrix from the PA DEP concerning alleged reporting, monitoring and related issues at the Company’s Hatfield, PA site prior to the time the Company acquired the site from Stericycle, Inc. The draft penalty matrix proposed a penalty of $1,000,000. On June 29, 2022, the PA DEP issued a draft Consent Assessment of Civil Penalty ("CACP") related to the alleged issues at the site. The Company and PA DEP entered into a CACP, settling the PA DEP's claims for $239,500, which was recorded as a liability. While it is the Company’s position that it has recourse for some or all liabilities arising from this matter under the ESOL purchase agreement and representations and warranties insurance policies purchased by the Company, there can be no assurances that the Company’s position will ultimately prevail.

DEA Investigation

Prior to the Company’s acquisition of ESOL, Stericycle, Inc. notified the Company that the DEA had served an administrative subpoena on Stericycle, Inc. and executed a search warrant at a facility in Rancho Cordova, California and an administrative inspection warrant at a facility in Indianapolis, Indiana. The Company has determined that the DEA and the DTSC have launched investigations involving, at least in part, the ESOL business of collecting, transporting, and destroying controlled substances from retail customers that transferred from Stericycle, Inc. to the Company. The Company is cooperating with these inquiries, which relate primarily to the period before the Company owned the ESOL business. Since the acquisition of the ESOL business, the Company has performed a vigorous review of ESOL’s compliance program related to controlled substances and has made material changes to the manner in which controlled substances are transported from retail customers to DEA-registered facilities for destruction. The Company has not accrued any amounts in respect of these investigations and cannot estimate the reasonably possible loss or the range of reasonably possible losses that it may incur, if any. Investigations of this type are, by their nature, uncertain and unpredictable. While it is the Company’s position that it has recourse for some or all liabilities, if any, that arise from these matters under the ESOL purchase agreement and representations and warranties insurance policies purchased by the Company, there can be no assurances that the Company’s position will ultimately prevail.

Brazilian Tax Disputes

The Company is involved in a number of tax disputes with federal, state and municipal tax authorities in Brazil. These disputes are at various stages of the legal process, including the administrative review phase and the collection action phase, and include assessments of fixed amounts of principal and penalties, plus interest charges that increase at statutorily determined amounts per month and are assessed on the aggregate amount of the principal and penalties. In addition, the losing party, at the collection action or court of appeals phase, could be subject to a charge to cover statutorily mandated legal fees, which are generally calculated as a percentage of the total assessed amounts due, inclusive of penalty and interest. Many of the claims relate to ICMS, services and social security tax disputes. The largest proportion of the assessed amounts relate to ICMS claims filed by the SPRA, encompassing the period from January 2002 to May 2005.

In October 2009, the Company received notification of the SPRA’s final administrative decision regarding the levying of ICMS in the State of São Paulo in relation to services provided to a customer in the State between January 2004 and May 2005.  As of March 31, 2023 the principal amount of the tax assessment from the SPRA with regard to this case is approximately $1.2 million, with penalty, interest and fees assessed to date increasing such amount by an additional $17.7 million.  On June 4, 2018 the Appellate Court of the State of Sao Paulo ruled in favor of the SPRA but ruled that the assessed penalty should be reduced to approximately $1.2 million. After calculating the interest accrued on the penalty, the Company estimates that this ruling reduces the current overall potential liability for this case to approximately $7.2 million. All such amounts include the effect of foreign currency translation. The Company has appealed the ruling in favor of the SPRA to the Superior Court of Justice. Due to multiple court precedents in the Company’s favor, as well as the Company’s ability to appeal, the Company does not believe a loss is probable.

Another ICMS tax case involving the SPRA refers to the tax period from January 2002 to December 2003. In December 2018, the administrative tribunal hearing the case upheld the Company's liability. The aggregate amount assessed by the tax authorities in August 2005 was $5.0 million (the amounts with regard to this claim are valued as of the date of the assessment since it has not yet reached the collection phase), composed of a principal amount of $1.2 million, with penalty and interest assessed through that date increasing such amount by an additional $3.8 million.  On December 6, 2018 the administrative tribunal reduced the applicable penalties to $0.9 million. After calculating the interest accrued on the current penalty, the Company estimates that the current overall liability for this case to be approximately $5.5 million. All such amounts include the effect of foreign currency translation. The Company has appealed to the judicial phase at the Third Trial Court of the District of Cubatão, State of São Paulo. On October 14, 2022, the District Court issued a decision holding that the Company is not liable for the taxes at issue. The SPRA appealed this decision on December 28, 2022 and this appeal is pending review by the Appellate Court of the State of São Paulo. Due to multiple court precedents in the Company's favor, the Company does not believe a loss is probable.

The Company continues to believe that sufficient coverage for these claims exists as a result of the indemnification obligations of the Company's customer and such customer’s pledge of assets in connection with the October 2009 notice, as required by Brazilian law.

On December 30, 2020, the Company received an assessment from the municipal authority in Ipatinga, Brazil alleging $2.1 million in unpaid service taxes from the period 2015 to 2020. After calculating the interest and penalties accrued, the Company estimates that the current overall potential liability for this case to be approximately $3.5 million. On January 18, 2021, the Company filed a challenge to the assessment. Due to the multiple defenses that are available, the Company does not believe a loss is probable.

The Company intends to continue its practice of vigorously defending itself against these tax claims under various alternatives, including judicial appeal. The Company will continue to evaluate its potential liability with regard to these claims on a quarterly basis; however, it is not possible to predict the ultimate outcome of these tax-related disputes in Brazil. No loss provision has been recorded in the Company's condensed consolidated financial statements for the disputes described above because the loss contingency is not deemed probable, and the Company does not expect that any costs that are reasonably possible to be incurred by the Company in connection with Brazilian tax disputes would have a material adverse effect on the Company's financial condition, results of operations or cash flows.

Other

The Company is named as one of many defendants (approximately 90 or more in most cases) in legal actions in the U.S. alleging personal injury from exposure to airborne asbestos over the past several decades.  In their suits, the plaintiffs have named as defendants, among others, many manufacturers, distributors and installers of numerous types of equipment or products that allegedly contained asbestos.

The Company believes that the claims against it are without merit. The Company has never been a producer, manufacturer or processor of asbestos fibers. Any asbestos-containing part of a Company product used in the past was purchased from a supplier and the asbestos encapsulated in other materials such that airborne exposure, if it occurred, was not harmful and is not associated with the types of injuries alleged in the pending actions.

At March 31, 2023, there were 17,237 pending asbestos personal injury actions filed against the Company.  Of those actions, 16,596 were filed in the New York Supreme Court (New York County), 115 were filed in other New York State Supreme Court Counties and 526 were filed in courts located in other states.

The complaints in most of those actions generally follow a form that contains a standard damages demand of $20 million or $25 million, regardless of the individual plaintiff’s alleged medical condition, and without identifying any specific Company product.

At March 31, 2023, 16,549 of the actions filed in New York Supreme Court (New York County) were on the Deferred/Inactive Docket created by the court in December 2002 for all pending and future asbestos actions filed by persons who cannot demonstrate that they have a malignant condition or discernible physical impairment. The remaining 47 cases in New York County are pending on the Active or In Extremis Docket created for plaintiffs who can demonstrate a malignant condition or physical impairment.

The Company has liability insurance coverage under various primary and excess policies that the Company believes will be available, if necessary, to substantially cover any liability that might ultimately be incurred in the asbestos actions referred to above. The costs and expenses of the asbestos actions are being paid by the Company's insurers.

In view of the persistence of asbestos litigation in the U.S., the Company expects to continue to receive additional claims in the future. The Company intends to continue its practice of vigorously defending these claims and cases. At March 31, 2023, the Company has obtained dismissal in approximately 28,422 cases by stipulation or summary judgment prior to trial.

It is not possible to predict the ultimate outcome of asbestos-related actions in the U.S. due to the unpredictable nature of this litigation, and no loss provision has been recorded in the Company's condensed consolidated financial statements because a loss contingency is not deemed probable or estimable. Despite this uncertainty, and although results of operations and cash flows for a given period could be adversely affected by asbestos-related actions, the Company does not expect that any costs that are reasonably possible to be incurred by the Company in connection with asbestos litigation would have a material adverse effect on the Company's financial condition, results of operations or cash flows.

The Company is subject to various other claims and legal proceedings covering a wide range of matters that arose in the ordinary course of business. In the opinion of management, all such matters are adequately covered by insurance or by established reserves, and, if not so covered, are without merit or are of such kind, or involve such amounts, as would not have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Insurance liabilities are recorded when it is probable that a liability has been incurred for a particular event and the amount of loss associated with the event can be reasonably estimated. Insurance reserves have been estimated based primarily upon actuarial calculations and reflect the undiscounted estimated liabilities for ultimate losses, including claims incurred but not reported. Inherent in these estimates are assumptions that are based on the Company's history of claims and losses, a detailed analysis of existing claims with respect to potential value, and current legal and legislative trends. If actual claims differ from those projected by management, changes (either increases or decreases) to insurance reserves may be required and would be recorded through income in the period the change was determined. When a recognized liability has been determined to be covered by third-party insurance, the Company records an insurance claim receivable to reflect the covered liability. Insurance claim receivables are included in Other receivables on the Company's Condensed Consolidated Balance Sheets. See Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on Accrued insurance and loss reserves.

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Reconciliation of Basic and Diluted Shares

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Reconciliation of Basic and Diluted Shares

Reconciliation of Basic and Diluted Shares

	Three Months Ended
	March 31
(In thousands, except per share amounts)	2023		2022
Income (loss) from continuing operations attributable to Harsco Corporation common stockholders	$	(9,557)	$	(7,333)
Weighted-average shares outstanding:
Weighted-average shares outstanding - basic	79,633		79,363
Dilutive effect of stock-based compensation	—		—
Weighted-average shares outstanding - diluted	79,633		79,363
Earnings (loss) from continuing operations per common share, attributable to Harsco Corporation common stockholders:
Basic	$	(0.12)	$	(0.09)
Diluted	$	(0.12)	$	(0.09)

The following average outstanding stock-based compensation units were not included in the computation of diluted earnings per share because the effect was either antidilutive or the market conditions for the performance share units were not met:

	Three Months Ended
	March 31
(In thousands)	2023	2022
Restricted stock units	1,000	825
Stock appreciation rights	2,473	2,653
Performance share units	1,394	1,226

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Derivative Instruments, Hedging Activities and Fair Value

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Hedging Activities and Fair Value

Derivative Instruments, Hedging Activities and Fair Value

Derivative Instruments and Hedging Activities

The Company uses derivative instruments, including foreign currency exchange forward contracts and interest rate swaps to manage certain foreign currency and interest rate exposures.  Derivative instruments are viewed as risk management tools by the Company and are not used for trading or speculative purposes. All derivative instruments are recorded on the Company's Condensed Consolidated Balance Sheets at fair value.  The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information.  Accordingly, the Company utilizes valuation techniques that maximize the use of observable inputs, such as forward rates, interest rates, the Company’s credit risk and counterparties’ credit risks, and which minimize the use of unobservable inputs.  The Company is able to classify fair value balances based on the ability to observe those inputs.  Foreign currency exchange forward contracts and interest rate swaps are based upon pricing models using market-based inputs (Level 2).  Model inputs can be verified and valuation techniques do not involve significant management judgment.

The fair value of outstanding derivative contracts recorded as assets and liabilities on the Company's Condensed Consolidated Balance Sheets was as follows:

(In thousands)	Balance Sheet Location	Fair Value of Derivatives Designated as Hedging Instruments		Fair Value of Derivatives Not Designated as Hedging Instruments		Total Fair Value
March 31, 2023
Asset derivatives (Level 2):
Foreign currency exchange forward contracts	Other current assets	$	119	$	1,967	$	2,086
Interest rate swaps	Other current assets	1,310		—		1,310
Total		$	1,429	$	1,967	$	3,396
Liability derivatives (Level 2):
Foreign currency exchange forward contracts	Other current liabilities	$	806	$	6,695	$	7,501
Interest rate swaps	Other liabilities	4,446		—		4,446
Total		$	5,252	$	6,695	$	11,947
December 31, 2022
Asset derivatives (Level 2):
Foreign currency exchange forward contracts	Other current assets	$	1,042	$	2,154	$	3,196
Total		$	1,042	$	2,154	$	3,196
Liability derivatives (Level 2):
Foreign currency exchange forward contracts	Other current liabilities	$	577	$	4,796	$	5,373
Total		$	577	$	4,796	$	5,373

All of the Company's derivatives are recorded on the Condensed Consolidated Balance Sheets at gross amounts and do not offset. All of the Company's interest rate swaps and certain foreign currency exchange forward contracts are transacted under ISDA documentation. Each ISDA master agreement permits the net settlement of amounts owed in the event of default. The Company's derivative assets and liabilities subject to enforceable master netting arrangements, if offset, would have resulted in a net liability of $2.1 million and $0.1 million at March 31, 2023 and December 31, 2022, respectively.

The effect of derivative instruments on the Company's Condensed Consolidated Statements of Comprehensive Income (Loss) was as follows:

Derivatives Designated as Hedging Instruments

	Amount Recognized in OCI on Derivatives				Amount Reclassified from AOCI into Income - Effective Portion or Equity
	Three Months Ended				Three Months Ended
	March 31				March 31
(In thousands)	2023		2022		2023		2022
Foreign currency exchange forward contracts	$	(682)	$	1,009	$	411	$	(588)
Interest rate swaps	(2,887)		—		(248)		1,050
	$	(3,569)	$	1,009	$	163	$	462

The location and amount of gain (loss) recognized on the Company's Condensed Consolidated Statements of Operations was as follows:

	Three Months Ended
	March 31
	2023				2022
(In thousands)	Interest Expense		Income (Loss) from Discontinued Businesses		Interest Expense		Income (Loss) from Discontinued Businesses
Total amounts in the Condensed Consolidated Statement of Operations in which the effects of derivatives designated as hedging instruments are recorded	$	(24,328)	$	619	$	(15,092)	$	(39,097)
Interest rate swaps:
Gain or (loss) reclassified from AOCI into income	248		—		(1,050)		—
Amount recognized in earnings due to ineffectiveness	—		—		891		—
Foreign exchange contracts:
Gain or (loss) reclassified from AOCI into income	—		(411)		—		588

Derivatives Not Designated as Hedging Instruments

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives (a)
		Three Months Ended
		March 31
(In thousands)		2023		2022
Foreign currency exchange forward contracts	Cost of services and products sold	$	(3,297)	$	3,838

(a)      These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures.

Foreign Currency Exchange Forward Contracts

The Company conducts business in multiple currencies and, accordingly, is subject to the inherent risks associated with foreign exchange rate movements.  Foreign currency-denominated assets and liabilities are translated into U.S. dollars at the exchange rates existing at the respective consolidated balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. 

The Company uses derivative instruments to hedge cash flows related to foreign currency fluctuations.  Foreign currency exchange forward contracts outstanding are part of a worldwide program to minimize foreign currency exchange operating income and balance sheet exposure by offsetting foreign currency exposures of certain future payments between the Company and various subsidiaries, suppliers or customers.  The unsecured contracts are with major financial institutions. The Company may be exposed to credit loss in the event of non-performance by the contract counterparties. The Company evaluates the creditworthiness of the counterparties and does not expect default by them.  Foreign currency exchange forward contracts are used to hedge commitments, such as foreign currency debt, firm purchase commitments and foreign currency cash flows for certain export sales transactions.

Changes in the fair value of derivatives used to hedge foreign currency denominated balance sheet items are reported directly in earnings, along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments may be accounted for as cash flow hedges, as deemed appropriate, if the criteria for hedge accounting are met.  Gains and losses on derivatives designated as cash flow hedges are deferred in AOCI, a separate component of equity, and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. The ineffective portion of all hedges, if any, is recognized currently in earnings.

The recognized gains and losses offset amounts recognized in cost of services and products sold principally as a result of intercompany or third-party foreign currency exposures. At March 31, 2023 and December 31, 2022, the notional amounts of foreign currency exchange forward contracts were $529.9 million and $573.8 million, respectively. These contracts are primarily denominated in British Pound Sterling and Euros and mature through 2024.

In addition to foreign currency exchange forward contracts, the Company designates certain loans as hedges of net investments in international subsidiaries. The Company recorded pre-tax net gains of $0.3 million for the three months ended March 31, 2023 and pre-tax net losses of $0.6 million for the three months ended March 31, 2022 in AOCI.

Interest Rate Swaps

The Company uses interest rate swaps in conjunction with certain variable rate debt issuances in order to secure a fixed interest rate. Changes in the fair value attributed to the effect of the swaps’ interest spread and changes in the credit worthiness of the counter-parties are recorded in AOCI and are reclassified into income as interest payments are made.

The Company had a series of interest rate swaps that matured in 2022 and had the effect of converting $200.0 million of the Term Loan Facility from floating-rate to fixed-rate. The fixed rates provided by the swaps replaced the adjusted LIBOR rate in the interest calculation to 3.12% for 2022.

During the three months ended March 31, 2023, the Company entered into a new series of interest rate swaps with a scheduled maturity of December 2025. The swaps have the effect of converting $300.0 million of the New Term Loan from a floating interest rate to a fixed interest rate. The fixed rates provided by these swaps, ranging from 4.17% to 4.21%, replace the adjusted SOFR rate in the interest calculation.

Fair Value of Other Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and short-term borrowings approximate fair value due to the short-term maturities of these assets and liabilities. At March 31, 2023 and December 31, 2022, the total fair value of long-term debt and current maturities (excluding deferred financing costs) was $1,246.0 million and $1,227.6 million, respectively, compared with a carrying value of $1,373.8 million and $1,364.2 million, respectively.  Fair values for debt are based on pricing models using market-based inputs (Level 2) for similar issues or on the current rates offered to the Company for debt of the same remaining maturities.

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Review of Operations by Segment

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Review of Operations by Segment

Review of Operations by Segment 

	Three Months Ended
	March 31
(In thousands)	2023		2022
Revenues From Continuing Operations
Harsco Environmental	$	273,189	$	262,051
Harsco Clean Earth	222,464		190,746
Total Revenues From Continuing Operations	$	495,653	$	452,797
Operating Income (Loss) From Continuing Operations
Harsco Environmental	$	22,285	$	18,267
Harsco Clean Earth	16,471		(1,297)
Corporate	(9,751)		(9,222)
Total Operating Income (Loss) From Continuing Operations	$	29,005	$	7,748
Depreciation
Harsco Environmental	$	27,560	$	28,072
Harsco Clean Earth	4,927		5,101
Corporate	552		431
Total Depreciation	$	33,039	$	33,604
Amortization
Harsco Environmental	$	999	$	1,828
Harsco Clean Earth	6,029		6,075
Corporate (a)	937		683
Total Amortization	$	7,965	$	8,586
Capital Expenditures
Harsco Environmental	$	16,551	$	24,790
Harsco Clean Earth	4,830		6,696
Corporate	100		966
Total Capital Expenditures	$	21,481	$	32,452

(a)     Amortization expense on Corporate relates to the amortization of deferred financing costs.

Reconciliation of Segment Operating Income to Income (Loss) From Continuing Operations Before Income Taxes and Equity Income

	Three Months Ended
	March 31
(In thousands)	2023		2022
Segment operating income (loss)	$	38,756	$	16,970
General Corporate expense	(9,751)		(9,222)
Operating income (loss) from continuing operations	29,005		7,748
Interest income	1,455		644
Interest expense	(24,328)		(15,092)
Facility fees and debt-related income (expense)	(2,363)		(532)
Defined benefit pension income	(5,335)		2,410
Income (loss) from continuing operations before income taxes and equity income	$	(1,566)	$	(4,822)

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Revenue Recognition

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue RecognitionThe 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 and products. Revenues from continuing operations include service revenues from HE and CE and product revenues from HE. Revenue from the Rail business is included in Income (loss) from discontinued businesses.

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, 2023
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Consolidated Totals
Primary Geographical Markets (a):
North America	$	78,473	$	222,464	$	300,937
Western Europe	101,386		—		101,386
Latin America (b)	40,955		—		40,955
Asia-Pacific	28,961		—		28,961
Middle East and Africa	18,405		—		18,405
Eastern Europe	5,009		—		5,009
Total Revenues	$	273,189	$	222,464	$	495,653
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	229,361	$	—	$	229,361
Ecoproducts	38,402		—		38,402
Environmental systems for aluminum dross and scrap processing	5,426		—		5,426
Hazardous waste processing solutions	—		186,112		186,112
Soil and dredged materials processing and reuse solutions	—		36,352		36,352
Total Revenues	$	273,189	$	222,464	$	495,653

	Three Months Ended
	March 31, 2022
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Consolidated Totals
Primary Geographical Markets (a):
North America	$	71,079	$	190,746	$	261,825
Western Europe	102,079		—		102,079
Latin America (b)	35,805		—		35,805
Asia-Pacific	28,068		—		28,068
Middle East and Africa	19,886		—		19,886
Eastern Europe	5,134		—		5,134
Total Revenues	$	262,051	$	190,746	$	452,797
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	227,689	$	—	$	227,689
Ecoproducts	31,965		—		31,965
Environmental systems for aluminum dross and scrap processing	2,397		—		2,397
Hazardous waste processing solutions	—		159,007		159,007
Soil and dredged materials processing and reuse solutions	—		31,739		$	31,739
Total Revenues	$	262,051	$	190,746	$	452,797

(a)     Revenues are attributed to individual countries based on the location of the facility generating the revenue.

(b)     Includes Mexico.

The Company may receive payments in advance of earning revenue (advances on contracts), which are included in Other current liabilities and Other liabilities on the Condensed Consolidated Balance Sheets. The Company may recognize revenue in advance of being able to contractually invoice the customer (contract assets), which is included in Other current assets on the Condensed Consolidated Balance Sheets. Contract assets are transferred to Trade accounts receivable, net, when the right to payment becomes unconditional. Contract assets and advances on contracts are reported as a net position, on a contract-by-contract basis, at the end of each reporting period.

The Company had contract assets totaling $5.5 million and $5.3 million at March 31, 2023 and December 31, 2022, respectively. The Company had advances on contracts totaling $6.4 million and $6.8 million at March 31, 2023 and December 31, 2022, respectively. During the three months ended March 31, 2023, the Company recognized approximately $3 million of revenue related to amounts previously included in advances on contracts. During the three months ended March 31, 2022, the Company recognized approximately $3 million of revenue related to amounts previously included in advances on contracts. At March 31, 2023, HE had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $71.8 million. Of this amount, $21.5 million is expected to be fulfilled by March 31, 2024, $21.0 million by March 31, 2025, $15.5 million by March 31, 2026, $6.6 million by March 31, 2027 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.

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Other (Income) Expenses, Net

3 Months Ended

Mar. 31, 2023

Other Income and Expenses [Abstract]

Other (Income) Expenses, Net

Other (Income) Expenses, Net

The major components of this Cotherndensed Consolidated Statements of Operations caption were as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Employee termination benefit costs	$	535	$	(308)
Other costs (income) for exit activities (a)	(6,208)		581
Impaired asset write-downs	—		59
Net gains	(230)		(1,812)
Other	(248)		301
Other (income) expenses, net	$	(6,151)	$	(1,179)

(a) Includes a $6.8 million net gain recognized related to a lease modification during the three months ended March 31, 2023 that resulted in lease incentive for the Company to relocate an HE site prior to the end of the expected lease term.

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Components of Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss

Components of Accumulated Other Comprehensive Loss

AOCI is included on the Condensed Consolidated Statements of Stockholders' Equity. The components of AOCI, net of the effect of income taxes, and activity for the three months ended March 31, 2022 and 2023 was as follows:

	Components of AOCI, Net of Tax
(In thousands)	Cumulative Foreign Exchange Translation Adjustments			Effective Portion of Derivatives Designated as Hedging Instruments			Cumulative Unrecognized Actuarial Losses on Pension Obligations			Unrealized Gain (Loss) on Marketable Securities		Total
Balance at December 31, 2021	$	(134,889)		$	(3,024)		$	(422,248)		$	22	$	(560,139)
OCI before reclassifications	(2,847)		(a)	802		(b)	9,184		(a)	(3)		7,136
Amounts reclassified from AOCI, net of tax	—			338			4,534			—		4,872
Total OCI	(2,847)			1,140			13,718			(3)		12,008
Less: OCI attributable to noncontrolling interests	482			—			—			—		482
OCI attributable to Harsco Corporation	(2,365)			1,140			13,718			(3)		12,490
Balance at March 31, 2022	$	(137,254)		$	(1,884)		$	(408,530)		$	19	$	(547,649)

	Components of AOCI, Net of Tax
(In thousands)	Cumulative Foreign Exchange Translation Adjustments			Effective Portion of Derivatives Designated as Hedging Instruments			Cumulative Unrecognized Actuarial Losses on Pension Obligations			Unrealized Gain (Loss) on Marketable Securities		Total
Balance at December 31, 2022	$	(213,104)		$	157		$	(354,699)		$	10	$	(567,636)
OCI before reclassifications	12,446		(a)	(2,684)		(b)	(7,227)		(a)	1		2,536
Amounts reclassified from AOCI, net of tax	—			124			4,492			—		4,616
Total OCI	12,446			(2,560)			(2,735)			1		7,152
Less: OCI attributable to noncontrolling interests	(358)			—			—			—		(358)
OCI attributable to Harsco Corporation	12,088			(2,560)			(2,735)			1		6,794
Balance at March 31, 2023	$	(201,016)		$	(2,403)		$	(357,434)		$	11	$	(560,842)

(a)    Principally foreign currency fluctuation.

(b)     Net change from periodic revaluations.

Amounts reclassified from AOCI were as follows:

(In thousands)	Three Months Ended				Location on the Condensed Consolidated Statements of Operations
	March 31
	2023		2022
Amortization of cash flow hedging instruments:
Foreign currency exchange forward contracts	$	411	$	(588)	Income (loss) from discontinued businesses
Interest rate swaps	(248)		1,050		Interest expense
Total before taxes	163		462
Income taxes	(39)		(124)
Total reclassification of cash flow hedging instruments, net of tax	$	124	$	338
Amortization of defined benefit pension items (c):
Actuarial losses	$	4,670	$	4,727	Defined benefit pension income (expense)
Prior service costs	114		120		Defined benefit pension income (expense)
Total before taxes	4,784		4,847
Income taxes	(292)		(313)
Total reclassification of defined benefit pension items, net of tax	$	4,492	$	4,534

(c)    These AOCI components are included in the computation of net periodic pension costs. See Note 10, Employee Benefit Plans, for additional details.

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of PresentationThe Company has prepared these unaudited condensed consolidated financial statements in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the SEC. Accordingly, the unaudited condensed consolidated financial statements do not include all information and disclosure required by U.S. GAAP for annual financial statements. The December 31, 2022 Condensed Consolidated Balance Sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2022 audited consolidated financial statements.  These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in these unaudited condensed consolidated financial statements.

Reclassifications

Reclassifications

Certain reclassifications have been made to prior year amounts to conform with current year classifications.

Recently Adopted and Recently Issued Accounting Standards

Recently Adopted and Recently Issued Accounting Standards

The following accounting standards have been adopted in 2023:

On January 1, 2023, the Company adopted changes issued by the FASB that clarify that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with accounting standards governing revenue from contracts with customers. The adoption of these changes did not have an immediate impact on the Company's consolidated financial statements, but will be applied prospectively to future business combinations.

On January 1, 2023, the Company adopted changes issued by the FASB that require a buyer in a supplier finance program, also referred to as reverse factoring, payables finance, or structured payables arrangements, to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude, by disclosing qualitative and quantitative information about the program. At March 31, 2023, the Company concluded that the adoption of these changes did not have a material impact on the Company's condensed consolidated financial statements or the accompanying notes to the condensed consolidated financial statements.

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Dispositions (Tables)

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Balance sheet positions and financial information included in net income from discontinued operations and statements of cash flows

The former Harsco Rail Segment's balance sheet positions as of March 31, 2023 and December 31, 2022 are presented as Assets held-for-sale and Liabilities of assets held-for-sale in the Condensed Consolidated Balance Sheets and are summarized as follows:

(in thousands)	March 31 2023		December 31 2022
Trade accounts receivable, net	$	39,743	$	41,049
Other receivables	4,481		4,037
Inventories	111,447		105,256
Current portion of contract assets	73,204		84,848
Other current assets	34,982		30,950
Property, plant and equipment, net	41,919		41,004
Right-of-use assets, net	5,292		5,635
Goodwill	13,026		13,026
Intangible assets, net	2,685		2,746
Deferred income tax assets	5,825		6,887
Other assets	806		807
Total Rail assets included in Assets held-for-sale	$	333,410	$	336,245
Accounts payable	$	56,212	$	49,083
Accrued compensation	2,384		1,211
Current portion of operating lease liabilities	2,649		2,635
Current portion of advances on contracts	37,356		45,037
Other current liabilities	60,468		61,039
Operating lease liabilities	2,800		3,121
Deferred tax liabilities	5,688		5,480
Other liabilities	454		861
Total Rail liabilities included in Liabilities of assets held-for-sale	$	168,011	$	168,467

Certain key selected financial information included in Income (loss) from discontinued operations, net of tax, for the former Harsco Rail Segment is as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Amounts directly attributable to the former Harsco Rail Segment:
Service revenues	$	7,720	$	6,710
Product revenues (a)	57,332		45,113
Cost of services sold	5,626		4,295
Cost of products sold	45,743		72,546
Income (loss) from discontinued businesses	2,751		(35,895)
Additional amounts allocated to the former Harsco Rail Segment:
Selling, general and administrative expenses (b)	$	477	$	1,649

(a) The increase in product revenues and decrease in cost of products sold for 2023 compared with 2022 is due, in part, to liquidated damages and penalties on certain long-term contracts, as discussed below.

(b) The Company includes costs to sell the Rail business in the caption Income (loss) from discontinued businesses in the Condensed Consolidated Statements of Operations.

The following is selected financial information included on the Condensed Consolidated Statements of Cash Flows attributable to the former Harsco Rail Segment:

	Three Months Ended March 31
(In thousands)	2023	2022
Cash flows from investing activities
Purchases of property, plant and equipment	665	506

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Accounts Receivable and Note Receivable (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Schedule of accounts receivable

Accounts receivable consist of the following:

(In thousands)	March 31 2023		December 31 2022
Trade accounts receivable	$	290,648	$	272,775
Less: Allowance for expected credit losses	(8,871)		(8,347)
Trade accounts receivable, net	$	281,777	$	264,428
Other receivables (a)	$	25,832	$	25,379

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

(In millions)	March 31 2023		December 31 2022
Note receivable, at amortized cost	$	24.3	$	23.9
Note receivable, fair value	24.8		23.8

Schedule of provision for doubtful accounts related to trade accounts receivable

The provision for expected credit losses related to trade accounts receivable was as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Provision for expected credit losses related to trade accounts receivable	$	507	$	325

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Inventories (Tables)

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories consist of the following:

(In thousands)	March 31 2023		December 31 2022
Finished goods	$	12,884	$	11,809
Work-in-process	1,776		2,030
Raw materials and purchased parts	29,270		27,946
Stores and supplies	40,775		39,590
Total inventories	$	84,705	$	81,375

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Property, Plant and Equipment (Tables)

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Schedule of property, plant and equipment

Property, plant and equipment consist of the following:

(In thousands)	March 31 2023		December 31 2022
Land	$	71,987	$	72,020
Land improvements	16,843		16,750
Buildings and improvements	219,332		217,926
Machinery and equipment	1,539,171		1,513,238
Uncompleted construction	85,421		84,472
Gross property, plant and equipment	1,932,754		1,904,406
Less: Accumulated depreciation	(1,267,563)		(1,247,531)
Property, plant and equipment, net	$	665,191	$	656,875

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Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Components of lease expense

The components of lease expense were as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Finance leases:
Amortization expense	$	1,541	$	978
Interest on lease liabilities	354		183
Operating leases	8,554		8,069
Variable and short-term lease expense	12,086		13,343
Sublease income	(2)		(2)
Total lease expense from continuing operations	$	22,533	$	22,571

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Debt and Credit Agreements (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

Long-term debt consists of the following:

(In thousands)	March 31 2023		December 31 2022
Senior Secured Credit Facilities:
New Term Loan	$	491,250	$	492,500
Revolving Credit Facility	375,000		370,000
5.75% Senior Notes	475,000		475,000
Other financing payable (including finance leases) in varying amounts	32,584		26,661
Total debt obligations	1,373,834		1,364,161
Less: deferred financing costs	(14,383)		(15,172)
Total debt obligations, net of deferred financing costs	1,359,451		1,348,989
Less: current maturities of long-term debt	(13,245)		(11,994)
Long-term debt	$	1,346,206	$	1,336,995

Schedule of facility fees and debt-related income (expense)

The components of the Condensed Consolidated Statements of Operations caption Facility fees and debt-related income (expense) were as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Unused debt commitment and amendment fees	$	(12)	$	(532)
Securitization and factoring fees	(2,351)		—
Facility fees and debt-related income (expense)	$	(2,363)	$	(532)

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Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Schedule of net benefit costs

	Three Months Ended
	March 31
Defined Benefit Pension Plans Net Periodic Pension Cost (Benefit)	U.S. Plans				International Plans
(In thousands)	2023		2022		2023		2022
Service costs	$	—	$	—	$	307	$	432
Interest costs	2,543		1,429		7,414		4,394
Expected return on plan assets	(1,750)		(2,699)		(7,657)		(10,384)
Recognized prior service costs	—		—		114		120
Recognized actuarial losses	1,151		1,183		3,519		3,544
Defined benefit pension plans net periodic pension cost (benefit)	$	1,944	$	(87)	$	3,697	$	(1,894)

Schedule of contributions to pension plans

	Three Months Ended
Company Contributions	March 31
(In thousands)	2023		2022
Defined benefit pension plans (U.S.)	$	420	$	446
Defined benefit pension plans (International)	4,183		11,357
Multiemployer pension plans	484		457
Defined contribution pension plans	3,229		3,794

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Commitment and Contingencies (Tables)

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Loss Contingencies by Contingency

The following table summarizes information related to the location and undiscounted amount of the Company's environmental liabilities:

(In thousands)	March 31 2023		December 31 2022
Current portion of environmental liabilities (a)	$	6,859	$	7,120
Long-term environmental liabilities	26,481		26,880
Total environmental liabilities	$	33,340	$	34,000

(a)    The current portion of environmental liabilities is included in the caption Other current liabilities on the Condensed Consolidated Balance Sheets.

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Reconciliation of Basic and Diluted Shares (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Reconciliation of basic and diluted shares

	Three Months Ended
	March 31
(In thousands, except per share amounts)	2023		2022
Income (loss) from continuing operations attributable to Harsco Corporation common stockholders	$	(9,557)	$	(7,333)
Weighted-average shares outstanding:
Weighted-average shares outstanding - basic	79,633		79,363
Dilutive effect of stock-based compensation	—		—
Weighted-average shares outstanding - diluted	79,633		79,363
Earnings (loss) from continuing operations per common share, attributable to Harsco Corporation common stockholders:
Basic	$	(0.12)	$	(0.09)
Diluted	$	(0.12)	$	(0.09)

Schedule of antidilutive securities excluded from computation of earnings per share

The following average outstanding stock-based compensation units were not included in the computation of diluted earnings per share because the effect was either antidilutive or the market conditions for the performance share units were not met:

	Three Months Ended
	March 31
(In thousands)	2023	2022
Restricted stock units	1,000	825
Stock appreciation rights	2,473	2,653
Performance share units	1,394	1,226

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Derivative Instruments, Hedging Activities and Fair Value (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair value of outstanding derivative contracts

The fair value of outstanding derivative contracts recorded as assets and liabilities on the Company's Condensed Consolidated Balance Sheets was as follows:

(In thousands)	Balance Sheet Location	Fair Value of Derivatives Designated as Hedging Instruments		Fair Value of Derivatives Not Designated as Hedging Instruments		Total Fair Value
March 31, 2023
Asset derivatives (Level 2):
Foreign currency exchange forward contracts	Other current assets	$	119	$	1,967	$	2,086
Interest rate swaps	Other current assets	1,310		—		1,310
Total		$	1,429	$	1,967	$	3,396
Liability derivatives (Level 2):
Foreign currency exchange forward contracts	Other current liabilities	$	806	$	6,695	$	7,501
Interest rate swaps	Other liabilities	4,446		—		4,446
Total		$	5,252	$	6,695	$	11,947
December 31, 2022
Asset derivatives (Level 2):
Foreign currency exchange forward contracts	Other current assets	$	1,042	$	2,154	$	3,196
Total		$	1,042	$	2,154	$	3,196
Liability derivatives (Level 2):
Foreign currency exchange forward contracts	Other current liabilities	$	577	$	4,796	$	5,373
Total		$	577	$	4,796	$	5,373

Schedule of effect of derivative instruments

The effect of derivative instruments on the Company's Condensed Consolidated Statements of Comprehensive Income (Loss) was as follows:

Derivatives Designated as Hedging Instruments

	Amount Recognized in OCI on Derivatives				Amount Reclassified from AOCI into Income - Effective Portion or Equity
	Three Months Ended				Three Months Ended
	March 31				March 31
(In thousands)	2023		2022		2023		2022
Foreign currency exchange forward contracts	$	(682)	$	1,009	$	411	$	(588)
Interest rate swaps	(2,887)		—		(248)		1,050
	$	(3,569)	$	1,009	$	163	$	462

The location and amount of gain (loss) recognized on the Company's Condensed Consolidated Statements of Operations was as follows:

	Three Months Ended
	March 31
	2023				2022
(In thousands)	Interest Expense		Income (Loss) from Discontinued Businesses		Interest Expense		Income (Loss) from Discontinued Businesses
Total amounts in the Condensed Consolidated Statement of Operations in which the effects of derivatives designated as hedging instruments are recorded	$	(24,328)	$	619	$	(15,092)	$	(39,097)
Interest rate swaps:
Gain or (loss) reclassified from AOCI into income	248		—		(1,050)		—
Amount recognized in earnings due to ineffectiveness	—		—		891		—
Foreign exchange contracts:
Gain or (loss) reclassified from AOCI into income	—		(411)		—		588

Derivatives Not Designated as Hedging Instruments

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives (a)
		Three Months Ended
		March 31
(In thousands)		2023		2022
Foreign currency exchange forward contracts	Cost of services and products sold	$	(3,297)	$	3,838

(a)      These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures.

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Review of Operations by Segment (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of operations by segment

	Three Months Ended
	March 31
(In thousands)	2023		2022
Revenues From Continuing Operations
Harsco Environmental	$	273,189	$	262,051
Harsco Clean Earth	222,464		190,746
Total Revenues From Continuing Operations	$	495,653	$	452,797
Operating Income (Loss) From Continuing Operations
Harsco Environmental	$	22,285	$	18,267
Harsco Clean Earth	16,471		(1,297)
Corporate	(9,751)		(9,222)
Total Operating Income (Loss) From Continuing Operations	$	29,005	$	7,748
Depreciation
Harsco Environmental	$	27,560	$	28,072
Harsco Clean Earth	4,927		5,101
Corporate	552		431
Total Depreciation	$	33,039	$	33,604
Amortization
Harsco Environmental	$	999	$	1,828
Harsco Clean Earth	6,029		6,075
Corporate (a)	937		683
Total Amortization	$	7,965	$	8,586
Capital Expenditures
Harsco Environmental	$	16,551	$	24,790
Harsco Clean Earth	4,830		6,696
Corporate	100		966
Total Capital Expenditures	$	21,481	$	32,452

(a)     Amortization expense on Corporate relates to the amortization of deferred financing costs.

Reconciliation of segment operating income to income from continuing operations before income taxes and equity income

Reconciliation of Segment Operating Income to Income (Loss) From Continuing Operations Before Income Taxes and Equity Income

	Three Months Ended
	March 31
(In thousands)	2023		2022
Segment operating income (loss)	$	38,756	$	16,970
General Corporate expense	(9,751)		(9,222)
Operating income (loss) from continuing operations	29,005		7,748
Interest income	1,455		644
Interest expense	(24,328)		(15,092)
Facility fees and debt-related income (expense)	(2,363)		(532)
Defined benefit pension income	(5,335)		2,410
Income (loss) from continuing operations before income taxes and equity income	$	(1,566)	$	(4,822)

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

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
	March 31, 2023
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Consolidated Totals
Primary Geographical Markets (a):
North America	$	78,473	$	222,464	$	300,937
Western Europe	101,386		—		101,386
Latin America (b)	40,955		—		40,955
Asia-Pacific	28,961		—		28,961
Middle East and Africa	18,405		—		18,405
Eastern Europe	5,009		—		5,009
Total Revenues	$	273,189	$	222,464	$	495,653
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	229,361	$	—	$	229,361
Ecoproducts	38,402		—		38,402
Environmental systems for aluminum dross and scrap processing	5,426		—		5,426
Hazardous waste processing solutions	—		186,112		186,112
Soil and dredged materials processing and reuse solutions	—		36,352		36,352
Total Revenues	$	273,189	$	222,464	$	495,653

	Three Months Ended
	March 31, 2022
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Consolidated Totals
Primary Geographical Markets (a):
North America	$	71,079	$	190,746	$	261,825
Western Europe	102,079		—		102,079
Latin America (b)	35,805		—		35,805
Asia-Pacific	28,068		—		28,068
Middle East and Africa	19,886		—		19,886
Eastern Europe	5,134		—		5,134
Total Revenues	$	262,051	$	190,746	$	452,797
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	227,689	$	—	$	227,689
Ecoproducts	31,965		—		31,965
Environmental systems for aluminum dross and scrap processing	2,397		—		2,397
Hazardous waste processing solutions	—		159,007		159,007
Soil and dredged materials processing and reuse solutions	—		31,739		$	31,739
Total Revenues	$	262,051	$	190,746	$	452,797

(a)     Revenues are attributed to individual countries based on the location of the facility generating the revenue.

(b)     Includes Mexico.

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Other (Income) Expenses, Net (Tables)

3 Months Ended

Mar. 31, 2023

Other Income and Expenses [Abstract]

Schedule of other (income) expenses

The major components of this Cotherndensed Consolidated Statements of Operations caption were as follows:

	Three Months Ended
	March 31
(In thousands)	2023		2022
Employee termination benefit costs	$	535	$	(308)
Other costs (income) for exit activities (a)	(6,208)		581
Impaired asset write-downs	—		59
Net gains	(230)		(1,812)
Other	(248)		301
Other (income) expenses, net	$	(6,151)	$	(1,179)

(a) Includes a $6.8 million net gain recognized related to a lease modification during the three months ended March 31, 2023 that resulted in lease incentive for the Company to relocate an HE site prior to the end of the expected lease term.

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Components of Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Schedule of accumulated other comprehensive loss

The components of AOCI, net of the effect of income taxes, and activity for the three months ended March 31, 2022 and 2023 was as follows:

	Components of AOCI, Net of Tax
(In thousands)	Cumulative Foreign Exchange Translation Adjustments			Effective Portion of Derivatives Designated as Hedging Instruments			Cumulative Unrecognized Actuarial Losses on Pension Obligations			Unrealized Gain (Loss) on Marketable Securities		Total
Balance at December 31, 2021	$	(134,889)		$	(3,024)		$	(422,248)		$	22	$	(560,139)
OCI before reclassifications	(2,847)		(a)	802		(b)	9,184		(a)	(3)		7,136
Amounts reclassified from AOCI, net of tax	—			338			4,534			—		4,872
Total OCI	(2,847)			1,140			13,718			(3)		12,008
Less: OCI attributable to noncontrolling interests	482			—			—			—		482
OCI attributable to Harsco Corporation	(2,365)			1,140			13,718			(3)		12,490
Balance at March 31, 2022	$	(137,254)		$	(1,884)		$	(408,530)		$	19	$	(547,649)

	Components of AOCI, Net of Tax
(In thousands)	Cumulative Foreign Exchange Translation Adjustments			Effective Portion of Derivatives Designated as Hedging Instruments			Cumulative Unrecognized Actuarial Losses on Pension Obligations			Unrealized Gain (Loss) on Marketable Securities		Total
Balance at December 31, 2022	$	(213,104)		$	157		$	(354,699)		$	10	$	(567,636)
OCI before reclassifications	12,446		(a)	(2,684)		(b)	(7,227)		(a)	1		2,536
Amounts reclassified from AOCI, net of tax	—			124			4,492			—		4,616
Total OCI	12,446			(2,560)			(2,735)			1		7,152
Less: OCI attributable to noncontrolling interests	(358)			—			—			—		(358)
OCI attributable to Harsco Corporation	12,088			(2,560)			(2,735)			1		6,794
Balance at March 31, 2023	$	(201,016)		$	(2,403)		$	(357,434)		$	11	$	(560,842)

(a)    Principally foreign currency fluctuation.

(b)     Net change from periodic revaluations.

Reclassification out of accumulated other comprehensive income

Amounts reclassified from AOCI were as follows:

(In thousands)	Three Months Ended				Location on the Condensed Consolidated Statements of Operations
	March 31
	2023		2022
Amortization of cash flow hedging instruments:
Foreign currency exchange forward contracts	$	411	$	(588)	Income (loss) from discontinued businesses
Interest rate swaps	(248)		1,050		Interest expense
Total before taxes	163		462
Income taxes	(39)		(124)
Total reclassification of cash flow hedging instruments, net of tax	$	124	$	338
Amortization of defined benefit pension items (c):
Actuarial losses	$	4,670	$	4,727	Defined benefit pension income (expense)
Prior service costs	114		120		Defined benefit pension income (expense)
Total before taxes	4,784		4,847
Income taxes	(292)		(313)
Total reclassification of defined benefit pension items, net of tax	$	4,492	$	4,534

(c)    These AOCI components are included in the computation of net periodic pension costs. See Note 10, Employee Benefit Plans, for additional details.

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Dispositions - Schedule of Balance Sheet from Disposal of Harsco Rail Segment (Details) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total Rail liabilities included in Liabilities of assets held-for-sale	$ 159,069	$ 159,004
Discontinued Operations, Held-for-sale | Harsco Rail Segment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Trade accounts receivable, net	39,743	41,049
Other receivables	4,481	4,037
Inventories	111,447	105,256
Current portion of contract assets	73,204	84,848
Other current assets	34,982	30,950
Property, plant and equipment, net	41,919	41,004
Right-of-use assets, net	5,292	5,635
Goodwill	13,026	13,026
Intangible assets, net	2,685	2,746
Deferred income tax assets	5,825	6,887
Other assets	806	807
Total Rail assets included in Assets held-for-sale	333,410	336,245
Accounts payable	56,212	49,083
Accrued compensation	2,384	1,211
Current portion of operating lease liabilities	2,649	2,635
Current portion of advances on contracts	37,356	45,037
Other current liabilities	60,468	61,039
Operating lease liabilities	2,800	3,121
Deferred tax liabilities	5,688	5,480
Other liabilities	454	861
Total Rail liabilities included in Liabilities of assets held-for-sale	$ 168,011	$ 168,467

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Dispositions - Schedule of Income (Loss) from Discontinued Operations Harsco Rail (Details) - Discontinued Operations, Held-for-sale - Harsco Rail Segment - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) from discontinued businesses	$ 2,751	$ (35,895)
Selling, general and administrative expenses	477	1,649
Service revenues
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	7,720	6,710
Cost of services and products sold	5,626	4,295
Product Revenues
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	57,332	45,113
Cost of services and products sold	$ 45,743	$ 72,546

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Dispositions - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Business Acquisition [Line Items]
Contract estimated forward loss provision	$ 0.0
Network Rail
Business Acquisition [Line Items]
Contract estimated forward loss provision		$ 24.2
Percentage complete	51.00%
Deutsche Bahn
Business Acquisition [Line Items]
Contract estimated forward loss provision		7.4
Percentage complete	36.00%
SBB | Contract
Business Acquisition [Line Items]
Contract estimated forward loss provision		3.5
Percentage complete	85.00%
Discontinued Operations, Held-for-sale | Harsco Rail Segment
Business Acquisition [Line Items]
Corporate overhead expenses	$ 1.0	$ 1.0

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Dispositions - Summary of Cash Flow Information from Disposal of Harsco Rail Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Discontinued Operations, Held-for-sale | Harsco Rail Segment
Business Acquisition [Line Items]
Purchases of property, plant and equipment	$ 665	$ 506

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Accounts Receivable and Note Receivable - Schedule of Receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Receivables [Abstract]
Trade accounts receivable	$ 290,648	$ 272,775
Less: Allowance for expected credit losses	(8,871)	(8,347)
Trade accounts receivable, net	281,777	264,428
Other receivables	$ 25,832	$ 25,379

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Accounts Receivable and Note Receivable - Schedule of Changes in Provisions For Allowance For Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Receivables [Abstract]
Provision for expected credit losses related to trade accounts receivable	$ 507	$ 325

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Accounts Receivable and Note Receivable - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Jan. 31, 2020	Jan. 01, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 290,648	$ 272,775
Accounts receivable past due by twelve months or more	3,300
Trade accounts receivable, net	281,777	264,428
Accounts receivable under factoring arrangement, program capacity	32,000	31,400
Note receivable, face value				$ 40,000
Note receivable, interest rate				2.50%
Harsco Industrial IKG | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Accounts, Notes, Loans and Financing Receivable [Line Items]
Selling price					$ 85,000
Accounts Receivable Under Factoring Arrangement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable, net	21,700	17,300
PNC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable securitization, maximum purchase commitment			$ 150,000
Total outstanding trade receivables sold and derecognized	150,000	145,000
Accounts receivable from securitization	82,400	$ 69,700
Proceeds from accounts receivable securitization	5,000
Greater than 12 months
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 10,600

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Accounts Receivable and Note Receivable - Schedule of Fair Value of Notes Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Receivables [Abstract]
Note receivable, at amortized cost	$ 24,300	$ 23,900
Note receivable, fair value	$ 24,800	$ 23,800

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Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 12,884	$ 11,809
Work-in-process	1,776	2,030
Raw materials and purchased parts	29,270	27,946
Stores and supplies	40,775	39,590
Total inventories	$ 84,705	$ 81,375

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Property, Plant and Equipment - Components (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment
Gross property, plant and equipment	$ 1,932,754	$ 1,904,406
Less: Accumulated depreciation	(1,267,563)	(1,247,531)
Property, plant and equipment, net	665,191	656,875
Land
Property, Plant and Equipment
Gross property, plant and equipment	71,987	72,020
Land improvements
Property, Plant and Equipment
Gross property, plant and equipment	16,843	16,750
Buildings and improvements
Property, Plant and Equipment
Gross property, plant and equipment	219,332	217,926
Machinery and equipment
Property, Plant and Equipment
Gross property, plant and equipment	1,539,171	1,513,238
Uncompleted construction
Property, Plant and Equipment
Gross property, plant and equipment	$ 85,421	$ 84,472

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Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment
Property, plant and equipment, net	$ 665,191	$ 656,875
China | Harsco Environmental Segment
Property, Plant and Equipment
Property, plant and equipment, net	$ 18,000

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Leases - Narrative (Details) $ in Millions	Mar. 31, 2023 USD ($)
Leases [Abstract]
Estimated operating lease obligations	$ 9

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Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Finance leases:
Amortization expense	$ 1,541	$ 978
Interest on lease liabilities	354	183
Operating leases	8,554	8,069
Variable and short-term lease expense	12,086	13,343
Sublease income	(2)	(2)
Total lease expense from continuing operations	$ 22,533	$ 22,571

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Debt and Credit Agreements - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Debt obligation	$ 1,373,834	$ 1,364,161
Less: deferred financing costs	(14,383)	(15,172)
Total debt obligations, net of deferred financing costs	1,359,451	1,348,989
Current maturities of long-term debt	(13,245)	(11,994)
Long-term debt	1,346,206	1,336,995
Other financing payable (including finance leases) in varying amounts
Debt Instrument [Line Items]
Debt obligation	32,584	26,661
Term Loan Facility | New Term Loan
Debt Instrument [Line Items]
Debt obligation	491,250	492,500
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Debt obligation	375,000	370,000
Senior Notes | 5.75% Senior Notes
Debt Instrument [Line Items]
Debt obligation	$ 475,000	$ 475,000

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Debt and Credit Agreements - Schedule of Facility Fees and Debt-Related Income (Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Schedule of Facility Fees and Debt-Related Income [Line Items]
Facility fees and debt-related income (expense)	$ (2,363)	$ (532)
Facility Fees and Debt-Related Income (Expense)
Schedule of Facility Fees and Debt-Related Income [Line Items]
Unused Debt Commitment And Amendment Fees	(12)	(532)
Securitization And Factoring Fees	$ (2,351)	$ 0

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Debt and Credit Agreements - Narrative (Details)	3 Months Ended
	Mar. 31, 2023
Debt Instrument [Line Items]
Total net debt to consolidated adjusted EBITDA ratio	4.94
Consolidated Adjusted EBITDA To Consolidated Interest Charges Ratio	3.02
Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Threshold of consolidated adjusted EBITDA to consolidated interest charges ratio covenant	2.75
Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Net debt to consolidated adjusted EBITDA ratio	5.50

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Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Defined benefit plans:
Multiemployer pension plans	$ 484	$ 457
Defined contribution pension plans	3,229	3,794
Pension Plan | U.S. Plans
Defined benefit plans:
Service costs	0	0
Interest costs	2,543	1,429
Expected return on plan assets	(1,750)	(2,699)
Recognized prior service costs	0	0
Recognized actuarial losses	1,151	1,183
Defined benefit pension plans net periodic pension cost (benefit)	1,944	(87)
Defined benefit pension plan	420	446
Anticipated contributions to defined benefit pension plans during the remainder of the fiscal year	1,400
Pension Plan | International Plans
Defined benefit plans:
Service costs	307	432
Interest costs	7,414	4,394
Expected return on plan assets	(7,657)	(10,384)
Recognized prior service costs	114	120
Recognized actuarial losses	3,519	3,544
Defined benefit pension plans net periodic pension cost (benefit)	3,697	(1,894)
Defined benefit pension plan	4,183	$ 11,357
Anticipated contributions to defined benefit pension plans during the remainder of the fiscal year	$ 19,700

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 6,923	$ 1,221
Unrecognized tax benefits	4,200
Unrecognized income tax benefit that will be recognized within the next twelve months	$ 1,300

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Commitments and Contingencies (Details) € in Thousands		1 Months Ended		3 Months Ended
	Jun. 04, 2018 USD ($)	Dec. 31, 2018 USD ($)	Aug. 31, 2005 USD ($)	Mar. 31, 2023 USD ($) claim defendant case	Dec. 31, 2022 USD ($)	Mar. 22, 2022 USD ($)	Mar. 21, 2022 USD ($)	Feb. 25, 2022 EUR (€)	Nov. 23, 2021 USD ($)	Oct. 14, 2021 EUR (€)	Dec. 30, 2020 USD ($)	Jan. 27, 2020 party	Nov. 01, 2019 USD ($)	Nov. 01, 2019 BRL (R$)	Mar. 18, 2019 USD ($)	Mar. 18, 2019 BRL (R$)
Commitments and Contingencies
Number Of Potentially Related Parties | party												20
Reserve for loss contingencies				$ 6,000,000
Penalties per day													$ 5,000	R$ 25,000	$ 1,000	R$ 5,000
Penalties													2,000,000	10,000,000
Current Portion of Environmental Liabilities				6,859,000	$ 7,120,000
Environmental liabilities				26,481,000	26,880,000
Total environmental liabilities				33,340,000	$ 34,000,000
Proposed Civil Penalty									$ 390,092
Malpractice Insurance, Deductible				5,000,000
Penalty Liability				600,000
Payments for Legal Settlements				239,500
BRAZIL
Commitments and Contingencies
Loss Contingencies, Unpaid Service Taxes											$ 2,100,000
Loss Contingencies, Overall Liability				3,500,000
Brazilian Tax Disputes - Jan 2004 through May 2005 | Sao Paulo State Revenue Authority
Commitments and Contingencies
Damages sought - interest, penalties and fees				17,700,000
Damages sought - principal				$ 1,200,000
Loss contingency, reduced penalty	$ 1,200,000
Amount of damages sought	$ 7,200,000
Brazilian Tax Disputes - Jan 2002 through Dec 2003 | Sao Paulo State Revenue Authority
Commitments and Contingencies
Damages sought - interest, penalties and fees			$ 3,800,000
Damages sought - principal			1,200,000
Loss contingency, reduced penalty		$ 900,000
Amount of damages sought			$ 5,000,000
Loss contingency, reduced penalty, including interest		$ 5,500,000
Other
Commitments and Contingencies
Approximate number of defendants that includes the company named in legal actions | defendant				90
Number of pending claims | claim				17,237
Number of claims dismissed to date by stipulation or summary judgment prior to trial | case				28,422
Other | Active or In Extremis docket
Commitments and Contingencies
Number of pending claims | claim				47
Other | Minimum
Commitments and Contingencies
Amount of damages sought				$ 20,000,000
Other | Maximum
Commitments and Contingencies
Amount of damages sought				$ 25,000,000
Other | New York County as managed by the New York Supreme Court
Commitments and Contingencies
Number of pending claims | case				16,596
Other | New York County as managed by the New York Supreme Court | Pending And Future Litigation, Deferred Or Inactive Docket
Commitments and Contingencies
Number of pending claims | claim				16,549
Other | New York State Supreme Court, Counties Excluding New York County
Commitments and Contingencies
Number of pending claims | case				115
Other | Courts Located In States Other Than New York
Commitments and Contingencies
Number of pending claims | case				526
U.S. EPA Notice of Intent
Commitments and Contingencies
Penalties						$ 3,000,000
Penalty Matrix From PA DEP
Commitments and Contingencies
Penalties							$ 1,000,000
Alleged Violation of Environmental Permit in Ijmuiden, Netherland | Amsterdam Public Prosecutor’s Office
Commitments and Contingencies
Loss Contingency, Amount Seeking From Other Party | €										€ 100
Loss Contingency, Fine Issued By Court | €								€ 5
CSN
Commitments and Contingencies
Penalties per day													$ 20,000	R$ 100,000	$ 4,000	R$ 20,000

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Commitments and Contingencies - Schedule of Loss Contingencies by Contingency (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Current Portion of Environmental Liabilities	$ 6,859,000	$ 7,120,000
Long-term environmental liabilities	26,481,000	26,880,000
Total environmental liabilities	$ 33,340,000	$ 34,000,000

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Reconciliation of Basic and Diluted Shares - Reconciliation of Basic and Diluted Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Income (loss) from continuing operations attributable to Harsco Corporation common stockholders	$ (9,557)	$ (7,333)
Weighted-average shares outstanding - basic (in shares)	79,633	79,363
Dilutive effect of stock-based compensation (in shares)	0	0
Weighted-average shares outstanding - diluted (in shares)	79,633	79,363
Earnings (loss) from continuing operations per common share, attributable to Harsco Corporation common stockholders:
Basic (in dollars per share)	$ (0.12)	$ (0.09)
Diluted (in dollars per share)	$ (0.12)	$ (0.09)

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Reconciliation of Basic and Diluted Shares - Antidilutive Securities Excluded from Computation of Earnings per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restricted stock units
Antidilutive securities
Number of securities not included in computation of diluted earnings per share (in shares)	1,000	825
Stock appreciation rights
Antidilutive securities
Number of securities not included in computation of diluted earnings per share (in shares)	2,473	2,653
Performance share units
Antidilutive securities
Number of securities not included in computation of diluted earnings per share (in shares)	1,394	1,226

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Derivative Instruments, Hedging Activities and Fair Value - Fair Value of Outstanding Derivative Contracts (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivative contracts
Asset derivatives	$ 3,396	$ 3,196
Liability derivatives	11,947	5,373
Foreign currency exchange forward contracts | Other current assets
Derivative contracts
Asset derivatives	2,086	3,196
Foreign currency exchange forward contracts | Other current liabilities
Derivative contracts
Liability derivatives	7,501	5,373
Interest rate swaps | Other current assets
Derivative contracts
Asset derivatives	1,310
Interest rate swaps | Other liabilities
Derivative contracts
Liability derivatives	4,446
Fair Value of Derivatives Designated as Hedging Instruments
Derivative contracts
Asset derivatives	1,429	1,042
Liability derivatives	5,252	577
Fair Value of Derivatives Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current assets
Derivative contracts
Asset derivatives	119	1,042
Fair Value of Derivatives Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current liabilities
Derivative contracts
Liability derivatives	806	577
Fair Value of Derivatives Designated as Hedging Instruments | Interest rate swaps | Other current assets
Derivative contracts
Asset derivatives	1,310
Fair Value of Derivatives Designated as Hedging Instruments | Interest rate swaps | Other liabilities
Derivative contracts
Liability derivatives	4,446
Fair Value of Derivatives Not Designated as Hedging Instruments
Derivative contracts
Asset derivatives	1,967	2,154
Liability derivatives	6,695	4,796
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current assets
Derivative contracts
Asset derivatives	1,967	2,154
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current liabilities
Derivative contracts
Liability derivatives	6,695	$ 4,796
Fair Value of Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Other current assets
Derivative contracts
Asset derivatives	0
Fair Value of Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Other liabilities
Derivative contracts
Liability derivatives	$ 0

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Derivative Instruments, Hedging Activities and Fair Value - Narrative (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Foreign Currency Derivatives
Net asset (liability) offset against collateral	$ (2,100,000)		$ (100,000)
Pre-tax net gains (losses) on certain loans designated as hedges of net investments in foreign subsidiaries	300,000	$ (600,000)
Long-term debt, fair value	1,246,000,000		1,227,600,000
Foreign currency exchange forward contracts
Foreign Currency Derivatives
Derivative, Notional Amount	529,900,000		$ 573,800,000
Term Loan
Foreign Currency Derivatives
Principal amount	300,000,000
Term Loan Facility, Fixed-Rate | Term Loan
Foreign Currency Derivatives
Principal amount	$ 200,000,000
LIBOR | Term Loan Facility, Fixed-Rate | Term Loan
Foreign Currency Derivatives
Variable rate basis spread (as a percent)			3.12%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Term Loan | Term Loan Facility, Fixed-Rate | Minimum
Foreign Currency Derivatives
Variable rate basis spread (as a percent)	4.17%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Term Loan | Term Loan Facility, Fixed-Rate | Maximum
Foreign Currency Derivatives
Variable rate basis spread (as a percent)	4.21%
Reported Value Measurement
Foreign Currency Derivatives
Long-term Debt	$ 1,373,800,000		$ 1,364,200,000

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Derivative Instruments, Hedging Activities and Fair Value - Effect of Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Effect of derivative instruments
Amount Recognized in OCI on Derivatives	$ (3,569)	$ 1,009
Amount Reclassified from AOCI into Income - Effective Portion or Equity	163	462
Foreign currency exchange forward contracts
Effect of derivative instruments
Amount Recognized in OCI on Derivatives	(682)	1,009
Foreign currency exchange forward contracts | Income (Loss) from Discontinued Businesses
Effect of derivative instruments
Amount Reclassified from AOCI into Income - Effective Portion or Equity	411	(588)
Interest rate swaps
Effect of derivative instruments
Amount Recognized in OCI on Derivatives	(2,887)	0
Interest rate swaps | Income (Loss) from Discontinued Businesses
Effect of derivative instruments
Amount Reclassified from AOCI into Income - Effective Portion or Equity	0	0
Interest rate swaps | Interest Expense
Effect of derivative instruments
Amount Reclassified from AOCI into Income - Effective Portion or Equity	$ (248)	$ 1,050

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Derivative Instruments, Hedging Activities and Fair Value - Derivatives Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative [Line Items]
Interest expense	$ (24,328)	$ (15,092)
Income (loss) from discontinued businesses	619	(39,097)
Gain or (loss) reclassified from AOCI into income	(163)	(462)
Fair Value of Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Interest expense	(24,328)	(15,092)
Interest Expense | Interest rate swaps
Derivative [Line Items]
Gain or (loss) reclassified from AOCI into income	248	(1,050)
Amount recognized in earnings due to ineffectiveness	0	891
Interest Expense | Foreign exchange contracts
Derivative [Line Items]
Gain or (loss) reclassified from AOCI into income	0	0
Income (Loss) from Discontinued Businesses | Interest rate swaps
Derivative [Line Items]
Gain or (loss) reclassified from AOCI into income	0	0
Amount recognized in earnings due to ineffectiveness	0	0
Income (Loss) from Discontinued Businesses | Foreign exchange contracts
Derivative [Line Items]
Gain or (loss) reclassified from AOCI into income	$ (411)	$ 588

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Derivative Instruments, Hedging Activities and Fair Value - Instrument Not Designated As Hedging Instrument (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Foreign currency exchange forward contracts | Cost of services and products sold
Derivative [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ (3,297)	$ 3,838

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Review of Operations by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operations by segment
Revenues	$ 495,653	$ 452,797
Operating income from continuing operations	29,005	7,748
Interest income	1,455	644
Interest expense	(24,328)	(15,092)
Facility fees and debt-related income (expense)	(2,363)	(532)
Defined benefit pension income (expense)	(5,335)	2,410
Income (loss) from continuing operations before income taxes and equity income	(1,566)	(4,822)
Depreciation	33,039	33,604
Depreciation Excluding Industrial Segment		33,604
Amortization	7,965	8,586
Amortization, Excluding Discontinued Operations		8,586
Capital Expenditures	21,481	32,452
Operating Segments
Operations by segment
Operating income from continuing operations	38,756	16,970
Operating Segments | Harsco Environmental Segment
Operations by segment
Revenues	273,189	262,051
Operating income from continuing operations	22,285	18,267
Depreciation	27,560	28,072
Amortization	999	1,828
Capital Expenditures	16,551	24,790
Operating Segments | Harsco Clean Earth Segment
Operations by segment
Revenues	222,464	190,746
Operating income from continuing operations	16,471	(1,297)
Depreciation	4,927	5,101
Amortization	6,029	6,075
Capital Expenditures	4,830	6,696
Corporate
Operations by segment
Operating income from continuing operations	(9,751)	(9,222)
Depreciation	552	431
Amortization	937	683
Capital Expenditures	$ 100	$ 966

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Revenue Recognition - Revenues by Primary Geographical Markets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 495,653	$ 452,797
Environmental services related to resource recovery for metals manufacturing and related logistical services
Disaggregation of Revenue [Line Items]
Revenues	229,361	227,689
Ecoproducts
Disaggregation of Revenue [Line Items]
Revenues	38,402	31,965
Environmental systems for aluminum dross and scrap processing
Disaggregation of Revenue [Line Items]
Revenues	5,426	2,397
Hazardous waste processing solutions
Disaggregation of Revenue [Line Items]
Revenues	186,112	159,007
Soil and dredged materials processing and reuse solutions
Disaggregation of Revenue [Line Items]
Revenues	36,352	31,739
North America
Disaggregation of Revenue [Line Items]
Revenues	300,937	261,825
Western Europe
Disaggregation of Revenue [Line Items]
Revenues	101,386	102,079
Latin America
Disaggregation of Revenue [Line Items]
Revenues	40,955	35,805
Asia-Pacific
Disaggregation of Revenue [Line Items]
Revenues	28,961	28,068
Middle East and Africa
Disaggregation of Revenue [Line Items]
Revenues	18,405	19,886
Eastern Europe
Disaggregation of Revenue [Line Items]
Revenues	5,009	5,134
Operating Segments | Harsco Environmental Segment
Disaggregation of Revenue [Line Items]
Revenues	273,189	262,051
Operating Segments | Harsco Environmental Segment | Environmental services related to resource recovery for metals manufacturing and related logistical services
Disaggregation of Revenue [Line Items]
Revenues	229,361	227,689
Operating Segments | Harsco Environmental Segment | Ecoproducts
Disaggregation of Revenue [Line Items]
Revenues	38,402	31,965
Operating Segments | Harsco Environmental Segment | Environmental systems for aluminum dross and scrap processing
Disaggregation of Revenue [Line Items]
Revenues	5,426	2,397
Operating Segments | Harsco Environmental Segment | Hazardous waste processing solutions
Disaggregation of Revenue [Line Items]
Revenues	0	0
Operating Segments | Harsco Environmental Segment | Soil and dredged materials processing and reuse solutions
Disaggregation of Revenue [Line Items]
Revenues	0	0
Operating Segments | Harsco Environmental Segment | North America
Disaggregation of Revenue [Line Items]
Revenues	78,473	71,079
Operating Segments | Harsco Environmental Segment | Western Europe
Disaggregation of Revenue [Line Items]
Revenues	101,386	102,079
Operating Segments | Harsco Environmental Segment | Latin America
Disaggregation of Revenue [Line Items]
Revenues	40,955	35,805
Operating Segments | Harsco Environmental Segment | Asia-Pacific
Disaggregation of Revenue [Line Items]
Revenues	28,961	28,068
Operating Segments | Harsco Environmental Segment | Middle East and Africa
Disaggregation of Revenue [Line Items]
Revenues	18,405	19,886
Operating Segments | Harsco Environmental Segment | Eastern Europe
Disaggregation of Revenue [Line Items]
Revenues	5,009	5,134
Operating Segments | Harsco Clean Earth Segment
Disaggregation of Revenue [Line Items]
Revenues	222,464	190,746
Operating Segments | Harsco Clean Earth Segment | Environmental services related to resource recovery for metals manufacturing and related logistical services
Disaggregation of Revenue [Line Items]
Revenues	0	0
Operating Segments | Harsco Clean Earth Segment | Ecoproducts
Disaggregation of Revenue [Line Items]
Revenues	0	0
Operating Segments | Harsco Clean Earth Segment | Environmental systems for aluminum dross and scrap processing
Disaggregation of Revenue [Line Items]
Revenues	0	0
Operating Segments | Harsco Clean Earth Segment | Hazardous waste processing solutions
Disaggregation of Revenue [Line Items]
Revenues	186,112	159,007
Operating Segments | Harsco Clean Earth Segment | Soil and dredged materials processing and reuse solutions
Disaggregation of Revenue [Line Items]
Revenues	36,352	31,739
Operating Segments | Harsco Clean Earth Segment | North America
Disaggregation of Revenue [Line Items]
Revenues	222,464	190,746
Operating Segments | Harsco Clean Earth Segment | Western Europe
Disaggregation of Revenue [Line Items]
Revenues	0	0
Operating Segments | Harsco Clean Earth Segment | Latin America
Disaggregation of Revenue [Line Items]
Revenues	0	0
Operating Segments | Harsco Clean Earth Segment | Asia-Pacific
Disaggregation of Revenue [Line Items]
Revenues	0	0
Operating Segments | Harsco Clean Earth Segment | Middle East and Africa
Disaggregation of Revenue [Line Items]
Revenues	0	0
Operating Segments | Harsco Clean Earth Segment | Eastern Europe
Disaggregation of Revenue [Line Items]
Revenues	$ 0	$ 0

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Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Total contract assets	$ 5.5		$ 5.3
Total advances on contracts	6.4		$ 6.8
Revenue recognized	$ 3.0	$ 3.0

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Revenue Recognition - Remaining Performance Obligation (Details) - Harsco Environmental Segment $ in Millions	Mar. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 71.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 21.5
Period of expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 21.0
Period of expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 15.5
Period of expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 6.6
Period of expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Period of expected timing of satisfaction

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Other (Income) Expenses, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other Income and Expenses [Abstract]
Employee termination benefit costs	$ 535	$ (308)
Other costs (income) for exit activities (a)	(6,208)	581
Impaired asset write-downs	0	59
Net gains	(230)	(1,812)
Other	(248)	301
Other (income) expenses, net	(6,151)	$ (1,179)
Net gain	$ 6,800

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Components of Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Components of Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	$ 623,042	$ 805,770
OCI before reclassifications	2,536	7,136
Amounts reclassified from AOCI, net of tax	4,616	4,872
Total other comprehensive income (loss)	7,152	12,008
Less: OCI attributable to noncontrolling interests	(358)	482
OCI attributable to Harsco Corporation	6,794	12,490
Ending balance	623,952	781,095
Cumulative Foreign Exchange Translation Adjustments
Components of Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(213,104)	(134,889)
OCI before reclassifications	12,446	(2,847)
Amounts reclassified from AOCI, net of tax	0	0
Total other comprehensive income (loss)	12,446	(2,847)
Less: OCI attributable to noncontrolling interests	(358)	482
OCI attributable to Harsco Corporation	12,088	(2,365)
Ending balance	(201,016)	(137,254)
Effective Portion of Derivatives Designated as Hedging Instruments
Components of Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	157	(3,024)
OCI before reclassifications	(2,684)	802
Amounts reclassified from AOCI, net of tax	124	338
Total other comprehensive income (loss)	(2,560)	1,140
Less: OCI attributable to noncontrolling interests	0	0
OCI attributable to Harsco Corporation	(2,560)	1,140
Ending balance	(2,403)	(1,884)
Cumulative Unrecognized Actuarial Losses on Pension Obligations
Components of Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(354,699)	(422,248)
OCI before reclassifications	(7,227)	9,184
Amounts reclassified from AOCI, net of tax	4,492	4,534
Total other comprehensive income (loss)	(2,735)	13,718
Less: OCI attributable to noncontrolling interests	0	0
OCI attributable to Harsco Corporation	(2,735)	13,718
Ending balance	(357,434)	(408,530)
Unrealized Gain (Loss) on Marketable Securities
Components of Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	10	22
OCI before reclassifications	1	(3)
Amounts reclassified from AOCI, net of tax	0	0
Total other comprehensive income (loss)	1	(3)
Less: OCI attributable to noncontrolling interests	0	0
OCI attributable to Harsco Corporation	1	(3)
Ending balance	11	19
Accumulated Other Comprehensive Loss
Components of Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(567,636)	(560,139)
Total other comprehensive income (loss)	6,794	12,490
Ending balance	$ (560,842)	$ (547,649)

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Components of Accumulated Other Comprehensive Loss - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	$ 24,328	$ 15,092
Income from continuing operations before income taxes	(1,566)	(4,822)
Income tax expense (benefit)	6,923	1,221
Net income (loss)	(8,590)	(38,680)
Amount Reclassified from Accumulated Other Comprehensive Loss | Cash flow hedging intruments
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Income from continuing operations before income taxes	163	462
Income tax expense (benefit)	(39)	(124)
Net income (loss)	124	338
Amount Reclassified from Accumulated Other Comprehensive Loss | Cash flow hedging intruments | Foreign currency exchange forward contracts
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) from discontinued businesses	411	(588)
Amount Reclassified from Accumulated Other Comprehensive Loss | Cash flow hedging intruments | Interest rate swaps
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	(248)	1,050
Amount Reclassified from Accumulated Other Comprehensive Loss | Defined benefit pension items
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Income from continuing operations before income taxes	4,784	4,847
Income tax expense (benefit)	(292)	(313)
Net income (loss)	4,492	4,534
Amount Reclassified from Accumulated Other Comprehensive Loss | Actuarial losses
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Defined benefit pension income (expense)	4,670	4,727
Amount Reclassified from Accumulated Other Comprehensive Loss | Prior service costs
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Defined benefit pension income (expense)	$ 114	$ 120