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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 receivables4,481 4,037 
Inventories111,447 105,256 
Current portion of contract assets73,204 84,848 
Other current assets34,982 30,950 
Property, plant and equipment, net41,919 41,004 
Right-of-use assets, net5,292 5,635 
Goodwill13,026 13,026 
Intangible assets, net2,685 2,746 
Deferred income tax assets5,825 6,887 
Other assets806 807 
Total Rail assets included in Assets held-for-sale$333,410 $336,245 
Accounts payable$56,212 $49,083 
Accrued compensation2,384 1,211 
Current portion of operating lease liabilities2,649 2,635 
Current portion of advances on contracts37,356 45,037 
Other current liabilities60,468 61,039 
Operating lease liabilities2,800 3,121 
Deferred tax liabilities5,688 5,480 
Other liabilities454 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)20232022
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 sold5,626 4,295 
Cost of products sold45,743 72,546 
Income (loss) from discontinued businesses2,751 (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)20232022
Cash flows from investing activities
Purchases of property, plant and equipment665 506