Revenue Recognition

9 Months Ended

Sep. 30, 2020

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 Harsco Clean Earth Segment and the service components of the Harsco Environmental and Harsco Rail Segments. Product revenues include portions of the Harsco Environmental and Harsco Rail Segments.

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


	Three Months Ended
	September 30, 2020
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	58,973	$	194,098	$	62,805	$	315,876
Western Europe	92,506		—		21,416		113,922
Latin America (c)	29,085		—		412		29,497
Asia-Pacific	22,079		—		8,160		30,239
Middle East and Africa	15,558		—		—		15,558
Eastern Europe	4,306		—		—		4,306
Total Revenues	$	222,507	$	194,098	$	92,793	$	509,398
Key Product and Service Groups (a):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	181,640	$	—	$	—	$	181,640
Applied products	38,166		—		—		38,166
Environmental systems for aluminum dross and scrap processing	2,701		—		—		2,701
Railway track maintenance equipment	—		—		55,493		55,493
After market parts and services; safety and diagnostic technology	—		—		29,100		29,100
Railway contracting services	—		—		8,200		8,200
Waste processing, recycling, reuse and transportation solutions	—		194,098		—		194,098

Total Revenues	$	222,507	$	194,098	$	92,793	$	509,398


	Three Months Ended
	September 30, 2019
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	78,076	$	87,639	$	56,923	$	222,638
Western Europe	93,426		—		10,409		103,835
Latin America (c)	35,127		—		551		35,678
Asia-Pacific	34,529		—		6,750		41,279
Middle East and Africa	15,302		—		—		15,302
Eastern Europe	4,423		—		—		4,423
Total Revenues	$	260,883	$	87,639	$	74,633	$	423,155


Key Product and Service Groups (a):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	218,788	$	—	$	—	$	218,788
Applied products	34,890		—		—		34,890
Environmental systems for aluminum dross and scrap processing	7,205		—		—		7,205
Railway track maintenance equipment	—		—		30,233		30,233
After market parts and services; safety and diagnostic technology	—		—		37,100		37,100
Railway contracting services	—		—		7,300		7,300
Waste processing, recycling, reuse and transportation solutions	—		87,639		—		87,639

Total Revenues	$	260,883	$	87,639	$	74,633	$	423,155



	Nine Months Ended
	September 30, 2020
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	186,210	$	434,489	$	173,039	$	793,738
Western Europe	271,795		—		56,435		328,230
Latin America (c)	87,453		—		1,592		89,045
Asia-Pacific	63,969		—		21,908		85,877
Middle East and Africa	46,240		—		—		46,240
Eastern Europe	12,390		—		—		12,390
Total Revenues	$	668,057	$	434,489	$	252,974	$	1,355,520
Key Product and Service Groups (a):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	563,159	$	—	$	—	$	563,159
Applied products	95,019		—		—		95,019
Environmental systems for aluminum dross and scrap processing	9,879		—		—		9,879
Railway track maintenance equipment	—		—		138,519		138,519
After market parts and services; safety and diagnostic technology	—		—		92,800		92,800
Railway contracting services	—		—		21,655		21,655
Waste processing, recycling, reuse and transportation solutions	—		434,489		—		434,489
Total Revenues	$	668,057	$	434,489	$	252,974	$	1,355,520


	Nine Months Ended
	September 30, 2019
(In thousands)	Harsco Environmental Segment		Harsco Clean Earth Segment		Harsco Rail Segment		Consolidated Totals
Primary Geographical Markets (a) (b):
North America	$	229,537	$	87,639	$	172,566	$	489,742
Western Europe	290,125		—		30,960		321,085
Latin America (c)	108,390		—		1,915		110,305
Asia-Pacific	104,446		—		19,342		123,788
Middle East and Africa	44,959		—		—		44,959
Eastern Europe	14,076		—		—		14,076
Total Revenues	$	791,533	$	87,639	$	224,783	$	1,103,955


Key Product and Service Groups (a):
Environmental services related to resource recovery for metals manufacturing and related logistical services	$	673,244	$	—	$	—	$	673,244
Applied products	98,966		—		—		98,966
Environmental systems for aluminum dross and scrap processing	19,323		—		—		19,323
Railway track maintenance equipment	—		—		102,801		102,801
After market parts and services; safety and diagnostic technology	—		—		105,101		105,101
Railway contracting services	—		—		16,881		16,881
Waste processing, recycling, reuse and transportation solutions	—		87,639		—		87,639
Total Revenues	$	791,533	$	87,639	$	224,783	$	1,103,955

(a) The Company's acquisition of ESOL closed on April 6, 2020 and the Company's acquisition of Clean Earth closed on June 28, 2019. The results of both are included in the Harsco Clean Earth Segment. The operating results of the former Harsco Industrial Segment have been reflected as discontinued operations in the Company's Condensed Consolidated Statement of Operations for all periods presented. See Note 3, Acquisitions and Dispositions, for additional details.

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

The Company may receive payments in advance of earning revenue, which are treated as Advances on contracts on the Company's Condensed Consolidated Balance Sheets. The Company may recognize revenue in advance of being able to contractually invoice the customer, which is treated as Contract assets on the Company's Condensed Consolidated Balance Sheets. Non-current contract assets are included in Other assets on the Company's Condensed Consolidated Balance Sheets. Contract assets are transferred to Trade accounts receivable, net, when the right to payment becomes unconditional. Contract assets and Contract liabilities are reported as a net position, on a contract-by-contract basis, at the end of each reporting period. These instances are primarily related to the Harsco Rail Segment.

The Company had Contract assets totaling $57.6 million and $31.2 million at September 30, 2020 and December 31, 2019, respectively. The increase is due principally to recognition of additional contract assets in excess of contract assets transferred to accounts receivable during the nine months ended September 30, 2020, primarily in the Harsco Rail Segment. The Company had Advances on contracts totaling $86.0 million and $60.3 million at September 30, 2020 and December 31, 2019, respectively. The increase is due principally to the receipt of new advances on contracts in excess of recognition of revenue partially offset by revenue recognized related to advances in the Harsco Rail Segment. During the three and nine months ended September 30, 2020 the Company recognized approximately $20 million and $55 million, respectively, of revenue related to amounts previously included in Advances on contracts. During the three and nine months ended September 30, 2019 the Company recognized approximately $17 million and $53 million, respectively, of revenue related to amounts previously included in Advances on contracts. Additionally, during the three months ended September 30, 2019, the Company recognized revenue of $0.8 million, in the Harsco Rail Segment, related to performance obligations partially satisfied in prior periods.

At September 30, 2020 the Harsco Environmental Segment had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $102.5 million. Of this amount, $30.1 million is expected to be fulfilled by September 30, 2021, $20.1 million by September 30, 2022, $15.8 million by September 30, 2023, $13.2 million by September 30, 2024 and the remainder thereafter. These amounts exclude any variable fees, fixed fees subject to indexation and any performance obligations expected to be satisfied within one year. The decrease from December 31, 2019 is primarily due to the renegotiation of a contract with a customer in the U.K. who had entered into administration.

At September 30, 2020 the Harsco Rail Segment had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $364.0 million. Of this amount, $133.0 million is expected to be fulfilled by September 30, 2021, $131.5 million by September 30, 2022, $64.0 million by September 30, 2023, $30.8 million by September 30, 2024 and the remainder thereafter. These amounts exclude any variable fees, fixed fees subject to indexation and any performance obligations expected to be satisfied within one year. The increase from December 31, 2019 is primarily attributable to new contract signings in the U.S., India and Germany.