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Dispositions
 6 Months Ended
Jun. 30, 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 June 30, 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)June 30
2023		December 31
2022
Trade accounts receivable, net$52,368 $41,049 
Other receivables5,209 4,037 
Inventories109,242 105,256 
Current portion of contract assets68,167 84,848 
Other current assets36,008 30,950 
Property, plant and equipment, net44,392 41,004 
Right-of-use assets, net6,412 5,635 
Goodwill13,026 13,026 
Intangible assets, net2,616 2,746 
Deferred income tax assets2,701 6,887 
Noncurrent portion of contract assets20,420 — 
Other assets974 807 
Total Rail assets included in Assets held-for-sale$361,535 $336,245 
Accounts payable$52,561 $49,083 
Accrued compensation2,534 1,211 
Current portion of operating lease liabilities2,925 2,635 
Current portion of advances on contracts34,089 45,037 
Other current liabilities61,090 61,039 
Operating lease liabilities3,472 3,121 
Deferred tax liabilities2,368 5,480 
Other liabilities518 861 
Total Rail liabilities included in Liabilities of assets held-for-sale$159,557 $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 six months ended June 30, 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 EndedSix Months Ended
June 30June 30
(In thousands)2023202220232022
Amounts directly attributable to the former Harsco Rail Segment:
Service revenues$10,765 $7,488 $18,485 $14,198 
Product revenues (a)
78,083 64,364 135,415 109,477 
Cost of services sold7,290 4,229 12,916 8,524 
Cost of products sold (a)
60,762 52,548 106,505 125,094 
Income (loss) from discontinued businesses9,315 5,163 12,066 (30,732)
Additional amounts allocated to the former Harsco Rail Segment:
  Selling, general and administrative expenses (b)
$594 $1,862 $1,071 $3,511 
(a) Changes in product revenues and cost of products sold for 2023 compared with 2022 reflect, in part, estimated forward loss provisions and adjustments 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 on the Condensed Consolidated Statements of Operations.

The Company has retained corporate overhead expenses previously allocated to the former Harsco Rail Segment of $1.1 million and $2.1 million for each of the three and six months ended June 30, 2023 and 2022, respectively, 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 Network Rail, Deutsche Bahn, and SBB. The Company has previously recognized estimated forward loss provisions related to these contracts as additional costs in building the machines and continued supply chain related delays were encountered. The Company will continue to update its estimates to complete these contracts, which will include the effect of negotiations with the customer regarding price increases, change orders and extensions to delivery schedules.
In the second quarter of 2023, the Company reversed a portion of its estimated forward loss provision adjustment in the amount of $23.6 million related to its Network Rail contract. The favorable adjustment was the result of an amendment to the contract with Network Rail in the second quarter which extended the delivery schedule for the machines and reduced the estimate of liquidated damages. The reduction in liquidated damages was recorded as an increase to revenue and contract assets. Partially offsetting this were higher estimated material, engineering and labor costs due to additional experience gained during the manufacturing process. For the three and six months ended June 30, 2022, the Company recorded forward loss provisions of $0.3 million and $24.5 million, respectively, for these contracts, principally for additional estimated contractual liquidated damages which were recorded as a reduction of revenue.

For the Deutsche Bahn contract, in the second quarter of 2023, the Company recorded an additional forward loss provision of $8.4 million. The additional loss provision was due to increased costs related to the critical European-based supplier that had filed for bankruptcy in the second quarter of 2022 and ceased operations during the second quarter of 2023, as well as an increase in estimated component costs and engineering costs. For the six months ended June 30, 2022, the Company recorded a forward loss provision totaling $7.4 million due principally to estimated contractual penalties that would be triggered by supplier delays and thus recorded as a reduction of revenue.

For the SBB contract, in the second quarter of 2023 the Company recorded an additional forward loss provision of $6.1 million. The additional forward loss provision was due to increased estimates for material, engineering and commissioning costs for the remaining vehicles. For the six months ended June 30, 2022, the Company recorded a forward loss provision totaling $3.5 million 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 June 30, 2023, the contracts with Network Rail, Deutsche Bahn and the second contract with SBB are 51%, 38% and 83% 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:
Six Months Ended June 30
(In thousands)20232022
Cash flows from investing activities
Purchases of property, plant and equipment$1,236 $1,031