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Revenue Recognition
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenues
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. Service revenues include CE and the service components of HE and Rail. Product revenues include portions of HE and Rail.
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
June 30, 2024
(In thousands)
Harsco Environmental
Segment
Clean Earth
Segment
Harsco Rail
Segment
Consolidated Totals
Primary Geographical Markets (a):
North America$84,027 $236,105 $53,044 $373,176 
Western Europe109,620 — 18,652 128,272 
Latin America (b)
41,280 — 1,918 43,198 
Asia-Pacific28,345 — 7,345 35,690 
Middle East and Africa25,182 — — 25,182 
Eastern Europe 4,475 — — 4,475 
Total Revenues$292,929 $236,105 $80,959 $609,993 
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services$253,685 $— $— $253,685 
Ecoproducts34,263 — — 34,263 
Environmental systems for aluminum dross and scrap processing4,981 — — 4,981 
Railway track maintenance equipment— — 30,517 30,517 
After market parts and services; safety and diagnostic technology— — 35,131 35,131 
Railway contracting services— — 15,311 15,311 
Hazardous waste processing solutions— 194,874 — 194,874 
Soil and dredged materials processing and reuse solutions— 41,231 — 41,231 
Total Revenues$292,929 $236,105 $80,959 $609,993 
Three Months Ended
June 30, 2023
(In thousands)
Harsco Environmental
Segment
Clean Earth
Segment
Harsco Rail
Segment
Consolidated Totals
Primary Geographical Markets (a):
North America$81,616 $230,575 $69,450 $381,641 
Western Europe107,318 — 11,377 118,695 
Latin America (b)
42,180 — 561 42,741 
Asia-Pacific32,339 — 7,460 39,799 
Middle East and Africa21,117 — — 21,117 
Eastern Europe 5,023 — — 5,023 
Total Revenues $289,593 $230,575 $88,848 $609,016 
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services$242,638 $— $— $242,638 
Ecoproducts40,504 — — 40,504 
Environmental systems for aluminum dross and scrap processing6,451 — — 6,451 
Railway track maintenance equipment— — 44,796 44,796 
After market parts and services; safety and diagnostic technology— — 34,530 34,530 
Railway contracting services— — 9,522 9,522 
Hazardous waste processing solutions— 197,506 — 197,506 
Soil and dredged materials processing and reuse solutions— 33,069 — 33,069 
Total Revenues$289,593 $230,575 $88,848 $609,016 
Six Months Ended
June 30, 2024
(In thousands)
Harsco Environmental
Segment
Clean Earth
Segment
Harsco Rail
Segment
Consolidated Totals
Primary Geographical Markets (a):
North America$168,237 $462,135 $97,475 $727,847 
Western Europe219,895 — 40,024 259,919 
Latin America (b)
84,201 — 2,958 87,159 
Asia-Pacific57,260 — 15,670 72,930 
Middle East and Africa53,531 — — 53,531 
Eastern Europe 8,924 — — 8,924 
Total Revenues $592,048 $462,135 $156,127 $1,210,310 
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services$511,813 $— $— $511,813 
Ecoproducts70,527 — — 70,527 
Environmental systems for aluminum dross and scrap processing9,708 — — 9,708 
Railway track maintenance equipment— — 60,436 60,436 
After-market parts and services; safety and diagnostic technology
— — 66,007 66,007 
Railway contracting services— — 29,684 29,684 
Hazardous waste processing solutions— 386,784 — 386,784 
Soil and dredged materials processing and reuse solutions— 75,351 — 75,351 
Total Revenues$592,048 $462,135 $156,127 $1,210,310 
Six Months Ended
June 30, 2023
(In thousands)
Harsco Environmental
Segment
Clean Earth
Segment
Harsco Rail
Segment
Consolidated Totals
Primary Geographical Markets (a):
North America$160,089 $453,039 $113,612 $726,740 
Western Europe208,704 — 24,564 233,268 
Latin America (b)
83,135 — 1,165 84,300 
Asia-Pacific61,300 — 14,559 75,859 
Middle East and Africa39,522 — — 39,522 
Eastern Europe 10,032 — — 10,032 
Total Revenues$562,782 $453,039 $153,900 $1,169,721 
Key Product and Service Groups:
Environmental services related to resource recovery for metals manufacturing and related logistical services$471,999 $— $— $471,999 
Ecoproducts78,906 — — 78,906 
Environmental systems for aluminum dross and scrap processing11,877 — — 11,877 
Railway track maintenance equipment— — 74,240 74,240 
After-market parts and services; safety and diagnostic technology
— — 62,323 62,323 
Railway contracting services— — 17,337 17,337 
Hazardous waste processing solutions— 383,618 — 383,618 
Soil and dredged materials processing and reuse solutions— 69,421 — 69,421 
Total Revenues$562,782 $453,039 $153,900 $1,169,721 
(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 Current portion of advances on contracts 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 Current portion of contract assets and Other 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. These instances are primarily related to Rail.

The Company had contract assets totaling $99.4 million and $86.9 million at June 30, 2024 and December 31, 2023, respectively. The Company had advances on contracts totaling $30.5 million and $38.6 million at June 30, 2024 and December 31, 2023, respectively. During the three and six months ended June 30, 2024, the Company recognized $9.8 million and $20.5 million of revenue related to amounts previously included in advances on contracts. During the three and six months ended June 30, 2023, the Company recognized revenues of $10.9 million and $22.5 million, respectively, related to amounts previously included in advances on contracts.

At June 30, 2024, HE had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $77.0 million. Of this amount, $21.6 million is expected to be fulfilled by June 30, 2025, $18.9 million by June 30, 2026, $14.5 million by June 30, 2027, $11.6 million by June 30, 2028 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.

At June 30, 2024, Rail had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $128.7 million. Of this amount, $60.7 million is expected to be fulfilled by June 30, 2025, $34.2 million by June 30, 2026, $21.8 million by June 30, 2027, $8.0 million by June 30, 2028 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.
Rail 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 2021, 2022 and 2023 related to these contracts due to several factors, such as material and labor cost inflation, supply chain delays, the bankruptcy of a key vendor and increased engineering efforts.

For the Network Rail contract, the Company recorded an additional loss provision of $2.0 million in the second quarter of 2024, primarily related to costs for redesign and increased manufacturing costs. During the second quarter of 2023, the Company reversed a portion of its previous estimated loss provision adjustment in the amount of $23.6 million. The favorable adjustment was the result of an amendment to the contract with Network Rail which extended the delivery schedule for the machines and reduced the estimate of liquidated damages. The majority of 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 Deutsche Bahn contract, the Company recorded an additional loss provision of $7.2 million in the second quarter of 2024, related to supplier price increases, challenges with supplier quality on key components and increased engineering efforts that exceeded previous estimates. During the second quarter of 2023, the Company recorded an additional forward loss provision of $8.4 million. This loss provision was due to increased costs related to a critical supplier that had filed for bankruptcy in 2022 and ceased operations during the second quarter of 2023, as well as an increase in estimated component costs and engineering costs.

For the SBB contract, a $0.2 million provision was recognized in the six months ended June 30, 2024. In the second quarter of 2023, the company recorded an additional forward loss provision of $6.1 million, due to increased costs related to increased estimates for material, engineering and commissioning costs for the remaining vehicles.

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 could result in an additional estimated forward loss provision at such time that could be material. The Company will continue to update its estimates to complete these contracts, which will include the effect of negotiations with the customers regarding price increases, change orders and extensions to delivery schedules.

As of June 30, 2024, the contracts with Network Rail, Deutsche Bahn and SBB are 62%, 44% and 89% complete, respectively, based on costs incurred.
The Company provides assurance type warranties primarily for product sales at Rail. These warranties are typically not priced or negotiated separately (there is no option to separately purchase the warranty) or the warranty does not provide customers with a service in addition to the assurance that the product complies with agreed-upon specifications. Accordingly, such warranties do not represent separate performance obligations.