Revenue Recognition

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

The Company recognizes revenues to depict the transfer of promised services and products to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services or products. Service revenues include the service components of the Harsco Metals & Minerals and Harsco Rail Segments. Product revenues include the Harsco Industrial Segment and the product revenues of the Harsco Metals & Minerals and Harsco Rail Segments.

A summary of the Company's revenues by primary geographical markets as well as by key product and service groups is as follows:



	Three Months Ended
	March 31, 2019
(In thousands)	Harsco Metals & Minerals Segment		Harsco Industrial Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a):
North America	$	73,349	$	112,099	$	50,366	$	—	$	235,814
Western Europe	98,221		—		10,013		—		108,234
Latin America (b)	36,991		5,286		591		—		42,868
Asia-Pacific	34,138		—		7,621		—		41,759
Middle East and Africa	13,915		—		—		—		13,915
Eastern Europe	4,698		—		—		—		4,698
Total Revenues	$	261,312	$	117,385	$	68,591	$	—	$	447,288
Key Product and Service Groups:
On-site services and material logistics, product quality improvement and resource recovery for iron, steel and metals manufacturing; value- added environmental solutions for industrial co-products; as well as aluminum dross and scrap processing systems	$	261,312	$	—	$	—	$	—	$	261,312
Railway track maintenance services and equipment	—		—		68,591		—		68,591
Air-cooled heat exchangers	—		76,203		—		—		76,203
Industrial grating and fencing products	—		33,376		—		—		33,376
Heat transfer products	—		7,806		—		—		7,806
Total Revenues	$	261,312	$	117,385	$	68,591	$	—	$	447,288



	Three Months Ended
	March 31, 2018
(In thousands)	Harsco Metals & Minerals Segment		Harsco Industrial Segment		Harsco Rail Segment		Corporate		Consolidated Totals
Primary Geographical Markets (a):
North America	$	71,065	$	78,858	$	40,405	$	39	$	190,367
Western Europe	96,921		—		14,720		—		111,641
Latin America (b)	41,458		4,740		833		—		47,031
Asia-Pacific	36,221		—		3,720		—		39,941
Middle East and Africa	11,553		—		—		—		11,553
Eastern Europe	7,505		—		—		—		7,505
Total Revenues	$	264,723	$	83,598	$	59,678	$	39	$	408,038
Key Product and Service Groups:
On-site services and material logistics, product quality improvement and resource recovery for iron, steel and metals manufacturing; value- added environmental solutions for industrial co-products; as well as aluminum dross and scrap processing systems	$	264,723	$	—	$	—	$	—	$	264,723
Railway track maintenance services and equipment	—		—		59,678		—		59,678
Air-cooled heat exchangers	—		44,267		—		—		44,267
Industrial grating and fencing products	—		30,097		—		—		30,097
Heat transfer products	—		9,234		—		—		9,234
General Corporate	—		—		—		39		39
Total Revenues	$	264,723	$	83,598	$	59,678	$	39	$	408,038


(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, which are treated as Advances on contracts on the Condensed Consolidated Balance Sheets. The Company may recognize revenue in advance of being able to contractually invoice the customer, which is treated as Contract assets on the Condensed Consolidated Balance Sheets. Contract assets are transferred to Trade accounts receivable, net when right to payment becomes unconditional. Contract assets and Contract liabilities are reported as a net position, on a contract-by-contract basis, at the end of each reporting period. These instances are primarily related to the Harsco Rail Segment and air-cooled heat exchangers business of the Harsco Industrial Segment.

The Company had Contract assets totaling $17.5 million and $24.3 million at March 31, 2019 and December 31, 2018, respectively. The decrease is due principally to the transfer of contract assets to accounts receivable in excess of additional contract assets recognized during the three months ended March 31, 2019, primarily in the Harsco Rail Segment. The Company had Advances on contracts totaling $64.5 million and $69.0 million at March 31, 2019 and December 31, 2018, respectively. The decrease is due principally to the recognition of revenue on previously received advances on contracts in excess of receipts of new advances on contracts during the period and the impact of foreign currency translation during the three months ended March 31, 2019, primarily in the Harsco Rail Segment. During the three months ended March 31, 2019, the Company recognized $21.5 million of revenue related to amounts included in Advances on contracts at December 31, 2018.

At March 31, 2019, the Harsco Metals & Minerals Segment had remaining, fixed, unsatisfied performance obligations, where the expected contract duration exceeds one year totaling $136.7 million. Of this amount, $43.6 million is expected to be fulfilled by March 31, 2020, $35.4 million by March 31, 2021, $24.9 million by March 31, 2022, $22.9 million by

March 31, 2023 and the remainder thereafter. These amounts exclude any variable fees, fixed fees subject to indexation and any performance obligations expected to be satisfied within one year. The decrease from December 31, 2018 is primarily due to changes in foreign currency exchange rates.

At March 31, 2019, the Harsco Rail Segment had remaining, fixed, unsatisfied performance obligations, where the expected contract duration exceeds one year totaling $209.8 million. Of this amount, $94.3 million is expected to be fulfilled by March 31, 2020, $64.5 million by March 31, 2021, $36.7 million by March 31, 2022, $14.2 million by March 31, 2023 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.