Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | HARSCO CORP | |
Entity Central Index Key | 0000045876 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 80,189,569 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 84,743 | $ 64,260 |
Restricted cash | 2,942 | 2,886 |
Trade accounts receivable, net | 296,795 | 291,213 |
Other receivables | 51,130 | 54,182 |
Inventories | 147,696 | 133,111 |
Current portion of contract assets | 17,478 | 24,254 |
Other current assets | 45,219 | 35,128 |
Total current assets | 646,003 | 605,034 |
Property, plant and equipment, net | 483,448 | 469,900 |
Right-of-use assets, net | 49,584 | |
Goodwill | 412,449 | 411,552 |
Intangible assets, net | 78,753 | 79,825 |
Deferred income tax assets | 50,051 | 49,114 |
Other assets | 17,273 | 17,442 |
Total assets | 1,737,561 | 1,632,867 |
Current liabilities: | ||
Short-term borrowings | 6,426 | 10,078 |
Current maturities of long-term debt | 6,538 | 6,489 |
Accounts payable | 159,037 | 149,410 |
Accrued compensation | 37,483 | 57,586 |
Income taxes payable | 1,598 | 2,634 |
Insurance liabilities | 40,830 | 40,774 |
Current portion of advances on contracts | 37,014 | 31,317 |
Current portion of operating lease liabilities | 12,936 | |
Other current liabilities | 122,721 | 118,708 |
Total current liabilities | 424,583 | 416,996 |
Long-term debt | 642,375 | 585,662 |
Insurance liabilities | 20,384 | 19,575 |
Retirement plan liabilities | 201,572 | 213,578 |
Advances on contracts | 27,478 | 37,675 |
Operating lease liabilities | 37,037 | |
Other liabilities | 48,860 | 46,005 |
Total liabilities | 1,402,289 | 1,319,491 |
COMMITMENTS AND CONTINGENCIES | ||
HARSCO CORPORATION STOCKHOLDERS' EQUITY | ||
Preferred stock | 0 | 0 |
Common stock | 143,178 | 141,842 |
Additional paid-in capital | 192,912 | 190,597 |
Accumulated other comprehensive loss | (584,425) | (567,107) |
Retained earnings | 1,340,878 | 1,298,752 |
Treasury stock | (805,520) | (795,821) |
Total Harsco Corporation stockholders' equity | 287,023 | 268,263 |
Noncontrolling interests | 48,249 | 45,113 |
Total equity | 335,272 | 313,376 |
Total liabilities and equity | $ 1,737,561 | $ 1,632,867 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Revenues from continuing operations: | |||
Total revenues | $ 447,288 | $ 408,038 | |
Costs and expenses from continuing operations: | |||
Selling, general and administrative costs | 67,029 | 57,083 | |
Research and development expenses | 1,262 | 1,239 | |
Other expenses, net | 1,876 | 1,822 | |
Total costs and expenses | 409,042 | 371,497 | |
Operating income from continuing operations | 38,246 | 36,541 | |
Interest income | 534 | 498 | |
Interest expense | (9,739) | (9,583) | |
Defined benefit pension income (expense) | (1,337) | 839 | |
Income from continuing operations before income taxes and equity income | 27,704 | 28,295 | |
Income tax expense | (4,855) | (8,266) | |
Equity income of unconsolidated entities, net | 20 | 0 | |
Income from continuing operations | 22,869 | 20,029 | |
Discontinued operations: | |||
Loss on disposal of discontinued business | (440) | (580) | |
Income tax benefit related to discontinued business | 108 | 128 | |
Loss from discontinued operations | (332) | (452) | |
Net income | 22,537 | 19,577 | |
Less: Net income attributable to noncontrolling interests | (1,840) | (1,769) | |
Net income attributable to Harsco Corporation | 20,697 | 17,808 | |
Amounts attributable to Harsco Corporation common stockholders: | |||
Income from continuing operations, net of tax | 21,029 | 18,260 | |
Loss from discontinued operations | (332) | (452) | |
Net income attributable to Harsco Corporation | $ 20,697 | $ 17,808 | |
Weighted-average shares of common stock outstanding (in shares) | 79,907 | 80,650 | |
Basic earnings (loss) per common share attributable to Harsco Corporation common stockholders: | |||
Continuing operations (in dollars per share) | $ 0.26 | $ 0.23 | |
Discontinued operations (in dollars per share) | 0 | (0.01) | |
Basic earnings (loss) per share attributable to Harsco Corporation common stockholders (in dollars per share) | $ 0.26 | $ 0.22 | |
Diluted weighted-average shares of common stock outstanding (in shares) | 81,653 | 83,544 | |
Diluted earnings (loss) per common share attributable to Harsco Corporation common stockholders: | |||
Continuing operations (in dollars per share) | $ 0.26 | $ 0.22 | |
Discontinued operations (in dollars per share) | 0 | (0.01) | |
Diluted earnings (loss) per share attributable to Harsco Corporation common stockholders (in dollars per share) | $ 0.25 | [1] | $ 0.21 |
Service Revenues [Member] | |||
Revenues from continuing operations: | |||
Total revenues | $ 229,520 | $ 244,209 | |
Costs and expenses from continuing operations: | |||
Cost of services and products sold | 181,871 | 191,675 | |
Product Revenues | |||
Revenues from continuing operations: | |||
Total revenues | 217,768 | 163,829 | |
Costs and expenses from continuing operations: | |||
Cost of services and products sold | $ 157,004 | $ 119,678 | |
[1] | Does not total due to rounding |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 22,537 | $ 19,577 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, net of deferred income taxes of $1,131 and $1,627 for the three months ended March 31, 2019 and 2018, respectively | 9,454 | 12,501 |
Net gain (loss) on cash flow hedging instruments, net of deferred income taxes of $945 and $(839) for the three months ended March 31, 2019 and 2018, respectively | (3,147) | 2,677 |
Pension liability adjustments, net of deferred income taxes of $(342) and $(325) for the three months ended March 31, 2019 and 2018, respectively | (1,791) | (9,001) |
Unrealized gain (loss) on marketable securities, net of deferred income taxes of $(5) and $4 for the three months ended March 31, 2019 and 2018, respectively | 15 | (14) |
Total other comprehensive income | 4,531 | 6,163 |
Total comprehensive income | 27,068 | 25,740 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | (2,260) | (3,047) |
Comprehensive income attributable to Harsco Corporation | $ 24,808 | $ 22,693 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, deferred income taxes | $ 1,131 | $ 1,627 |
Net gain (loss) on cash flow hedging instruments, deferred income taxes | 945 | (839) |
Pension liability adjustments, deferred income taxes | (342) | (325) |
Unrealized gain (loss) on marketable securities, deferred income taxes | $ (5) | $ 4 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 22,537 | $ 19,577 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||
Depreciation | 30,204 | 31,418 |
Amortization | 3,045 | 1,934 |
Deferred income tax expense | 595 | 4,635 |
Equity income of unconsolidated entities, net | (20) | 0 |
Other, net | (279) | 1,944 |
Changes in assets and liabilities: | ||
Accounts receivable | (3,270) | (4,848) |
Inventories | (14,448) | (11,490) |
Contract assets | 6,770 | (5,698) |
Right-of-use assets | 3,895 | |
Accounts payable | 3,099 | 7,340 |
Accrued compensation | (19,924) | (26,131) |
Advances on contracts | (3,406) | (7,348) |
Operating lease liabilities | (3,913) | |
Retirement plan liabilities, net | (9,403) | (12,252) |
Other assets and liabilities | (644) | (7,324) |
Net cash provided (used) by operating activities | 14,838 | (8,243) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (36,407) | (26,897) |
Purchase of business, net of cash acquired | 680 | 0 |
Proceeds from sales of assets | 1,177 | 377 |
Net payments from settlement of foreign currency forward exchange contracts | (4,091) | (3,822) |
Net cash used by investing activities | (38,641) | (30,342) |
Cash flows from financing activities: | ||
Short-term borrowings, net | (3,578) | (3,659) |
Current maturities and long-term debt: | ||
Additions | 56,998 | 46,000 |
Reductions | (1,700) | (2,944) |
Sale of noncontrolling interests | 876 | 477 |
Stock-based compensation - Employee taxes paid | (8,237) | (709) |
Net cash provided by financing activities | 44,359 | 39,165 |
Effect of exchange rate changes on cash and cash equivalents, including restricted cash | (17) | 738 |
Net increase in cash and cash equivalents, including restricted cash | 20,539 | 1,318 |
Cash and cash equivalents, including restricted cash, at beginning of period | 67,146 | 66,209 |
Cash and cash equivalents, including restricted cash, at end of period | $ 87,685 | $ 67,527 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock Issued | Common Stock Treasury | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Balances at Dec. 31, 2017 | $ 215,165 | $ 141,110 | $ (762,079) | $ 180,201 | $ 1,157,801 | $ (546,582) | $ 44,714 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 19,577 | 17,808 | 1,769 | ||||
Sale of subsidiary shares to noncontrolling interest | 477 | 477 | |||||
Total other comprehensive income (loss), net of deferred income taxes of $1,729 and $467 in 2019 and 2018, respectively | 6,163 | 4,885 | 1,278 | ||||
Stock Appreciation Rights exercised, net 927 shares and 2,560 shares in 2019 and 2018, respectively | (26) | 5 | (26) | (5) | |||
Vesting of restricted stock units and other stock grants, net 94,229 shares and 102,695 shares in 2019 and 2018, respectively | (683) | 171 | (683) | (171) | |||
Amortization of unearned portion of stock-based compensation, net of forfeitures | 3,285 | 3,285 | |||||
Balances at Mar. 31, 2018 | 246,345 | 141,286 | (762,788) | 183,310 | 1,179,516 | (543,217) | 48,238 |
Increase (Decrease) in Stockholders' Equity | |||||||
Adoption of new accounting standards (See Note 2) | 0 | (21,429) | |||||
Balances at Dec. 31, 2018 | 313,376 | 141,842 | (795,821) | 190,597 | 1,298,752 | (567,107) | 45,113 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 22,537 | 20,697 | 1,840 | ||||
Sale of subsidiary shares to noncontrolling interest | 876 | 876 | |||||
Total other comprehensive income (loss), net of deferred income taxes of $1,729 and $467 in 2019 and 2018, respectively | 4,531 | 4,111 | 420 | ||||
Stock Appreciation Rights exercised, net 927 shares and 2,560 shares in 2019 and 2018, respectively | (8) | 2 | (8) | (2) | |||
Vesting of restricted stock units and other stock grants, net 94,229 shares and 102,695 shares in 2019 and 2018, respectively | (1,456) | 198 | (1,456) | (198) | |||
Vesting of performance share unites, net 529,213 shares in 2019 | (8,248) | 1,136 | (8,235) | (1,149) | |||
Amortization of unearned portion of stock-based compensation, net of forfeitures | 3,664 | 3,664 | |||||
Balances at Mar. 31, 2019 | $ 335,272 | $ 143,178 | $ (805,520) | $ 192,912 | $ 1,340,878 | $ (584,425) | $ 48,249 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Comprehensive Income (Loss), Tax | $ 1,729 | $ 467 |
Vesting of restricted stock units and other (in shares) | 94,229 | 102,695 |
Stock Appreciation Rights exercise (in shares) | 927 | 2,560 |
Vesting of performance share units (in shares) | 529,213 | 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Harsco Corporation (the "Company") has prepared these unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited condensed consolidated financial statements do not include all information and disclosure required by U.S. GAAP for annual financial statements. The December 31, 2018 Condensed Consolidated Balance Sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2018 audited consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited condensed consolidated financial statements. Reclassifications |
Recently Adopted and Recently I
Recently Adopted and Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted and Recently Issued Accounting Standards The following accounting standards have been adopted in 2019: On January 1, 2019, the Company adopted changes issued by the Financial Accounting Standards Board (“FASB”) related to accounting for leases. The changes introduce a lessee model that brings most leases onto the balance sheet. The changes also align many of the underlying principles of the new lessor model with those in the FASB’s new revenue recognition standard. Furthermore, the changes address other concerns related to the current leases model such as eliminating the requirement in current guidance for an entity to use bright-line tests in determining lease classification. The changes also require lessors to increase the transparency of their exposure to changes in value of their residual assets and how they manage that exposure. The Company elected the package of practical expedients permitted under the transition, which among other items, allowed the carry forward of the historical lease classification. The Company has elected to apply the transition requirements at the January 1, 2019 effective date and therefore, comparative information has not been restated and continues to be reported under U.S. GAAP in effect for those periods. The changes had a significant impact on the Condensed Consolidated Balance Sheets upon adoption and the Company recorded Right-of-use ("ROU") assets and lease liabilities of $53.0 million and $53.4 million , respectively. The difference between the ROU assets and lease liabilities was recorded primarily as adjustments to other assets and liabilities where prepaid rent and deferred expenses were previously recorded. Additionally, the Company's accounting for finance leases remained consistent. The changes did not have an impact on the Company’s Condensed Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows. The discount rates used to calculate the ROU assets and lease liabilities as of the effective date were based on the remaining lease terms as of the effective date. See Note 6, Leases for additional information. On January 1, 2019, the Company adopted changes issued by the FASB which expand and refine hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. Upon adoption, the Company’s recognition model for the excluded component was modified from a mark-to-market approach to an amortization approach for hedging relationships. Hedging relationships entered into on or after January 1, 2019 will be under the amortization approach while those entered into before January 1, 2019 will continue to be recognized under the mark-to-market approach. As such, there was no effect of applying this election reflected as an adjustment to Accumulated other comprehensive loss with a corresponding adjustment to the opening balance of Retained earnings. Presentation and disclosure amendments are required to be applied prospectively. Other than required expanded disclosures, the adoption of these changes did not have a material impact on the Company's condensed consolidated financial statements. On January 1, 2019, the Company adopted changes issued by the FASB which allow entities to reclassify stranded income tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income to retained earnings in the consolidated financial statements. Under the Tax Act, deferred taxes were adjusted to reflect the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate, which left the tax effects on items within accumulated other comprehensive income stranded at historical tax rates. The adoption of these changes resulted in the Company reclassifying approximately $21 million of stranded income tax effects into Retained earnings. The following accounting standards have been issued and become effective for the Company at a future date: In June 2016, the FASB issued changes which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The changes become effective for the Company on January 1, 2020, with early adoption permitted. Management has not yet completed the assessment of the impact of the new standard on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued changes that remove the second step of the annual goodwill impairment test, which requires a hypothetical purchase price allocation. The changes provide that the amount of goodwill impairment will be equal to the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains largely unchanged. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. The changes become effective for the Company on January 1, 2020. Management has determined that these changes will not have a material impact on the Company's condensed consolidated financial statements. However, should the Company be required to record a goodwill impairment charge in future periods, the amount recorded may differ compared to any amounts that might be recorded under current practice. In August 2018, the FASB issued changes which modify the disclosure requirements for fair value measurements. The amendments in this update remove the requirement to disclose the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The changes require disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The changes become effective for the Company on January 1, 2020. Other than required expanded disclosures, the adoption of these changes will not have a material impact on the Company's condensed consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions In May 2018, the Company acquired Altek Europe Holdings Limited and its affiliated entities (collectively, "Altek"), a U.K.-based manufacturer of market-leading products that enable aluminum producers and recyclers to manage and efficiently extract value from critical byproduct streams, reduce byproduct generation and improve operating productivity. The Company acquired Altek, on a debt and cash free basis, for a purchase price of £45 million (approximately $60 million ) in cash, with the potential for up to £25 million (approximately $33 million ) in additional contingent consideration through 2021 subject to the future financial performance of Altek. The cash consideration transferred included payments of $59.4 million , net of cash acquired and normal working capital adjustments. In addition, the Company recognized contingent consideration with an initial fair value of $12.1 million as of the acquisition date. Altek's revenues and operating results have been included in the results of the Harsco Metals & Minerals Segment. Inclusion of pro forma financial information for this transaction is not necessary as the acquisition is immaterial to the Company's results of operations. The initial fair value of contingent consideration was estimated using a probability simulation model, which uses assumptions and estimates to forecast a range of outcomes for the contingent consideration. Key inputs to the model include projected earnings before interest, tax, depreciation and amortization; the discount rate; the projection risk neutralization rate; and volatility, which are Level 3 data. The Company will assess these assumptions and estimates on a quarterly basis as additional data impacting the assumptions is obtained. Any changes in the fair value of contingent consideration related to updated assumptions and estimates will be recognized in the Consolidated Statements of Operations during the period in which the change occurs. The fair value recorded for the assets acquired and liabilities assumed for Altek is as follows: Final Valuation (In millions) June 30 2018 Measurement Period Adjustments (a) March 31 Cash and cash equivalents $ 1.7 $ — $ 1.7 Net working capital (1.5 ) 0.2 (1.3 ) Property, plant and equipment 3.3 — 3.3 Intangible assets 52.5 0.2 52.7 Goodwill 20.9 1.6 22.5 Net deferred tax liabilities (8.5 ) — (8.5 ) Other liabilities (0.3 ) — (0.3 ) Total identifiable net assets of Altek $ 68.1 $ 2.0 $ 70.1 (a) The measurement period adjustments did not have a material impact on the Company's previously reported operating results. The following table reflects the changes in the fair value of contingent consideration: (In thousands) Contingent Consideration Balance, December 31, 2018 $ 8,420 Fair value adjustment (b) 369 Foreign currency translation 186 Balance, March 31, 2019 $ 8,975 |
Accounts Receivable and Invento
Accounts Receivable and Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Accounts Receivable And Inventories | |
Accounts Receivable and Inventories | Accounts Receivable and Inventories Accounts receivable consist of the following: (In thousands) March 31 December 31 Trade accounts receivable $ 301,439 $ 295,847 Less: Allowance for doubtful accounts (4,644 ) (4,634 ) Trade accounts receivable, net $ 296,795 $ 291,213 Other receivables (a) $ 51,130 $ 54,182 (a) Other receivables include insurance claims, employee receivables, tax claims and other miscellaneous items not included in Trade accounts receivable, net. The provision (benefit) for doubtful accounts related to trade accounts receivable was as follows: Three Months Ended March 31 (In thousands) 2019 2018 Provision (benefit) for doubtful accounts related to trade accounts receivable $ 26 $ (46 ) Inventories consist of the following: (In thousands) March 31 December 31 Finished goods $ 19,089 $ 17,223 Work-in-process 21,715 21,787 Raw materials and purchased parts 82,983 72,194 Stores and supplies 23,909 21,907 Total inventories $ 147,696 $ 133,111 The Company recognized an initial estimated forward loss provision related to the contracts with the federal railway system of Switzerland ("SBB") of $45.1 million for the year ended December 31, 2016 . The Company recorded an additional forward loss provision of $1.8 million for the year ended December 31, 2018 . At March 31, 2019 , the entire remaining estimated forward loss provision of $6.8 million is included in the caption Other current liabilities on the Condensed Consolidated Balance Sheets. The estimated forward loss provision represents the Company's best estimate based on currently available information. It is possible that the Company's overall estimate of costs to complete these contracts may increase, which would result in an additional estimated forward loss provision at such time, but the Company is unable to estimate any further possible loss or range of loss at this time. There are a number of key events expected to occur in 2019, including the finalization of the manufacturing designs for certain of the vehicles, and which could affect the cost estimates. Any adjustment to the cost estimates would be recorded when new information becomes available and could have a material impact on the Company’s results of operations in that period. The Company recognized $4.7 million and $7.9 million of revenues for the contracts with SBB at zero margin, on an over time basis, utilizing a cost-to-cost method for the three months ended March 31, 2019 and 2018 , respectively. For the three months ended March 31, 2019 and 2018 , consolidated product revenue gross margins were not significantly impacted by the revenue recognized under the SBB contracts. The Company has substantially completed the first contract and is approximately 30% complete on the second contract with SBB as of March 31, 2019 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists of the following: (In thousands) March 31 December 31 Land $ 10,515 $ 10,621 Land improvements 15,932 16,156 Buildings and improvements 190,715 191,072 Machinery and equipment 1,566,706 1,538,166 Uncompleted construction 42,493 37,713 Gross property, plant and equipment 1,826,361 1,793,728 Less: Accumulated depreciation (1,342,913 ) (1,323,828 ) Property, plant and equipment, net $ 483,448 $ 469,900 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain property and equipment under noncancelable lease agreements. The Company determines if a contract or arrangement contains a lease at inception. All leases are evaluated and classified as either an operating or finance lease. A lease is classified as a finance lease if any of the following criteria are met: (i) ownership of the underlying asset transfers to the Company by the end of the lease term; (ii) the lease contains an option to purchase the underlying asset that the Company is reasonably expected to exercise; (iii) the lease term is for a major part of the remaining economic life of the underlying asset; (iv) the present value of the sum of lease payments and any residual value guaranteed by the Company equals or exceeds substantially all of the fair value of the underlying asset; or (v) the underlying asset is of a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. A lease that does not meet any of the criteria to be classified as a finance lease is classified as an operating lease. Operating leases are included in the captions Right-of-use assets, net, Current portion of operating lease liabilities, and Operating lease liabilities on the Condensed Consolidated Balance Sheets. ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. As most of the Company’s leases do not provide an implicit rate for use in determining the present value of future payments, the Company uses an incremental borrowing rate that reflects the creditworthiness of the Company for a lending period commensurate to the term of the lease and the standard lending practices related to such loans in the respective jurisdiction where the underlying assets are located. This incremental borrowing rate reflects the creditworthiness of the Company for a lending period commensurate to the term of the lease and the standard lending practices related to such loans in the respective jurisdiction where the underlying assets are located. ROU assets also include any lease payments made and exclude any lease incentives and initial direct costs incurred. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term, including rent abatement periods and rent holidays. Finance leases are included in the captions Property, plant and equipment, net; Current maturities of long-term debt and Long-term debt on the Condensed Consolidated Balance Sheets. Finance lease costs are split between depreciation expense related to the asset and interest expense on the lease liability, using the effective rate charged by the lessor. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for as a single lease component. Additionally, the Company has elected not to record short-term leases, those with expected terms of twelve months or less, on the Condensed Consolidated Balance Sheets. Certain lease agreements include fixed escalations, while others include rental payments adjusted periodically for inflation. There are no material residual value guarantees or material restrictive covenants. The Company's leases, excluding short-term leases, have remaining terms of less than one year to 24.5 years , some of which include options to extend for up to 10 years, and some of which include options to terminate within one year . The components of lease expense were as follows: Three Months Ended (In thousands) March 31 Finance leases: Amortization expense $ 310 Interest on lease liabilities 4 Operating leases 4,608 Short-term leases 4,669 Variable lease expense 314 Total lease expense $ 9,905 Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) March 31 Cash paid for amounts included in the measurement of lease liabilities: Cash flows from operating activities - Operating leases $ 4,670 Cash flows from financing activities - Finance leases 363 Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) $ 53,750 Finance leases 373 (a) Includes ROU assets of $53.0 million that were recorded upon adoption at January 1, 2019. Supplemental balance sheet information related to leases was as follows: (In thousands) March 31 Operating Leases: Operating lease right-of-use assets $ 49,584 Other current liabilities 12,936 Operating lease liabilities 37,037 Finance Leases: Property, plant and equipment, net $ 1,286 Current maturities of long-term debt 1,054 Long-term debt 945 Supplemental additional information related to leases is as follows: March 31 Other information: Weighted average remaining lease term - Operating leases (in years) 4.42 Weighted average remaining lease term - Finance leases (in years) 2.01 Weighted average discount rate - Operating leases 6.9 % Weighted average discount rate - Finance leases 4.1 % Maturities of lease liabilities were as follows: (In thousand) Operating Leases Finance Leases Year Ending December 31 st : 2019 (excluding the three months ended March 31, 2019) $ 12,210 $ 1,027 2020 12,943 631 2021 9,775 295 2022 7,563 117 2023 6,254 16 After 2023 21,576 2 Total lease payments 70,321 2,088 Less imputed interest (20,348 ) (89 ) Total $ 49,973 $ 1,999 As previously disclosed, under then in effect lease accounting in accordance with U.S. GAAP, future minimum payments under operating leases with noncancelable terms were as follows as of December 31, 2018: (In thousands) 2019 $ 13,985 2020 12,204 2021 9,448 2022 7,706 2023 6,201 After 2023 28,442 As of March 31, 2019, the Company has an additional operating lease for property that has not yet commenced with an estimated ROU asset and lease liability of approximately $5.0 million |
Leases | Leases The Company leases certain property and equipment under noncancelable lease agreements. The Company determines if a contract or arrangement contains a lease at inception. All leases are evaluated and classified as either an operating or finance lease. A lease is classified as a finance lease if any of the following criteria are met: (i) ownership of the underlying asset transfers to the Company by the end of the lease term; (ii) the lease contains an option to purchase the underlying asset that the Company is reasonably expected to exercise; (iii) the lease term is for a major part of the remaining economic life of the underlying asset; (iv) the present value of the sum of lease payments and any residual value guaranteed by the Company equals or exceeds substantially all of the fair value of the underlying asset; or (v) the underlying asset is of a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. A lease that does not meet any of the criteria to be classified as a finance lease is classified as an operating lease. Operating leases are included in the captions Right-of-use assets, net, Current portion of operating lease liabilities, and Operating lease liabilities on the Condensed Consolidated Balance Sheets. ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. As most of the Company’s leases do not provide an implicit rate for use in determining the present value of future payments, the Company uses an incremental borrowing rate that reflects the creditworthiness of the Company for a lending period commensurate to the term of the lease and the standard lending practices related to such loans in the respective jurisdiction where the underlying assets are located. This incremental borrowing rate reflects the creditworthiness of the Company for a lending period commensurate to the term of the lease and the standard lending practices related to such loans in the respective jurisdiction where the underlying assets are located. ROU assets also include any lease payments made and exclude any lease incentives and initial direct costs incurred. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term, including rent abatement periods and rent holidays. Finance leases are included in the captions Property, plant and equipment, net; Current maturities of long-term debt and Long-term debt on the Condensed Consolidated Balance Sheets. Finance lease costs are split between depreciation expense related to the asset and interest expense on the lease liability, using the effective rate charged by the lessor. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for as a single lease component. Additionally, the Company has elected not to record short-term leases, those with expected terms of twelve months or less, on the Condensed Consolidated Balance Sheets. Certain lease agreements include fixed escalations, while others include rental payments adjusted periodically for inflation. There are no material residual value guarantees or material restrictive covenants. The Company's leases, excluding short-term leases, have remaining terms of less than one year to 24.5 years , some of which include options to extend for up to 10 years, and some of which include options to terminate within one year . The components of lease expense were as follows: Three Months Ended (In thousands) March 31 Finance leases: Amortization expense $ 310 Interest on lease liabilities 4 Operating leases 4,608 Short-term leases 4,669 Variable lease expense 314 Total lease expense $ 9,905 Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) March 31 Cash paid for amounts included in the measurement of lease liabilities: Cash flows from operating activities - Operating leases $ 4,670 Cash flows from financing activities - Finance leases 363 Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) $ 53,750 Finance leases 373 (a) Includes ROU assets of $53.0 million that were recorded upon adoption at January 1, 2019. Supplemental balance sheet information related to leases was as follows: (In thousands) March 31 Operating Leases: Operating lease right-of-use assets $ 49,584 Other current liabilities 12,936 Operating lease liabilities 37,037 Finance Leases: Property, plant and equipment, net $ 1,286 Current maturities of long-term debt 1,054 Long-term debt 945 Supplemental additional information related to leases is as follows: March 31 Other information: Weighted average remaining lease term - Operating leases (in years) 4.42 Weighted average remaining lease term - Finance leases (in years) 2.01 Weighted average discount rate - Operating leases 6.9 % Weighted average discount rate - Finance leases 4.1 % Maturities of lease liabilities were as follows: (In thousand) Operating Leases Finance Leases Year Ending December 31 st : 2019 (excluding the three months ended March 31, 2019) $ 12,210 $ 1,027 2020 12,943 631 2021 9,775 295 2022 7,563 117 2023 6,254 16 After 2023 21,576 2 Total lease payments 70,321 2,088 Less imputed interest (20,348 ) (89 ) Total $ 49,973 $ 1,999 As previously disclosed, under then in effect lease accounting in accordance with U.S. GAAP, future minimum payments under operating leases with noncancelable terms were as follows as of December 31, 2018: (In thousands) 2019 $ 13,985 2020 12,204 2021 9,448 2022 7,706 2023 6,201 After 2023 28,442 As of March 31, 2019, the Company has an additional operating lease for property that has not yet commenced with an estimated ROU asset and lease liability of approximately $5.0 million |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table reflects the changes in carrying amounts of goodwill by segment for the three months ended March 31, 2019 : (In thousands) Harsco Metals & Minerals Segment Harsco Industrial Segment Harsco Rail Segment Consolidated Totals Balance at December 31, 2018 $ 391,687 $ 6,839 $ 13,026 $ 411,552 Foreign currency translation 897 — — 897 Balance at March 31, 2019 $ 392,584 $ 6,839 $ 13,026 $ 412,449 The Company tests for goodwill impairment annually, or more frequently if indicators of impairment exist, or if a decision is made to dispose of a business. The Company performs the annual goodwill impairment test as of October 1 and monitors for triggering events on an ongoing basis. The Company determined that, as of March 31, 2019 , no interim goodwill impairment testing was necessary. Intangible assets included in the caption, Intangible assets, net, on the Condensed Consolidated Balance Sheets consist of the following: March 31, 2019 December 31, 2018 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer related $ 137,242 $ 101,090 $ 136,307 $ 99,383 Patents 2,597 2,505 2,598 2,503 Technology related 36,572 3,599 35,831 2,681 Trade names 9,298 2,051 9,212 1,897 Other 5,929 3,640 5,865 3,524 Total $ 191,638 $ 112,885 $ 189,813 $ 109,988 Amortization expense for intangible assets was as follows: Three Months Ended March 31 (In thousands) 2019 2018 Amortization expense for intangible assets $ 2,352 $ 1,282 The estimated amortization expense for the next five fiscal years based on current intangible assets is as follows: (In thousands) 2019 2020 2021 2022 2023 Estimated amortization expense (a) $ 9,000 $ 8,750 $ 8,500 $ 8,250 $ 8,250 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Three Months Ended March 31 Defined Benefit Pension Plans Net Periodic Pension Cost (Benefit) U.S. Plans International Plans (In thousands) 2019 2018 2019 2018 Service costs $ 10 $ 10 $ 356 $ 386 Interest costs 2,651 2,391 5,664 5,672 Expected return on plan assets (2,593 ) (3,017 ) (9,517 ) (11,145 ) Recognized prior service costs — — 66 (39 ) Recognized loss 1,405 1,302 3,653 3,840 Settlement/curtailment losses — 166 — — Defined benefit pension plans net periodic pension cost (benefit) $ 1,473 $ 852 $ 222 $ (1,286 ) Three Months Ended Company Contributions March 31 (In thousands) 2019 2018 Defined benefit pension plans (U.S.) $ 1,479 $ 1,284 Defined benefit pension plans (International) 9,270 9,734 Multiemployer pension plans 521 501 Defined contribution pension plans 3,390 2,835 The Company's estimate of expected contributions to be paid during the remainder of 2019 for the U.S. and international defined benefit pension plans are $7.0 million and $11.5 million |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense related to continuing operations for the three months ended March 31, 2019 and March 31, 2018 was $4.9 million and $8.3 million , respectively. An income tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, based on technical merits, including resolutions of any related appeals or litigation processes. The reserve for uncertain tax positions at March 31, 2019 was $3.5 million , including interest and penalties. Within the next twelve months, it is reasonably possible that up to $0.1 million |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental The Company is involved in a number of environmental remediation investigations and cleanups and, along with other companies, has been identified as a “potentially responsible party” for certain byproduct disposal sites. While each of these matters is subject to various uncertainties, it is probable that the Company will agree to make payments toward funding certain of these activities, and it is possible that some of these matters will be decided unfavorably to the Company. The Company has evaluated its potential liability, and its financial exposure is dependent upon such factors as the continuing evolution of environmental laws and regulatory requirements, the availability and application of technology, the allocation of cost among potentially responsible parties, the years of remedial activity required and the remediation methods selected. Other than set forth herein the Company did not have any material accruals or record any material expenses related to environmental matters during the periods presented. The Company evaluates its liability for future environmental remediation costs on a quarterly basis. Although actual costs to be incurred at identified sites in future periods may vary from the estimates (given inherent uncertainties in evaluating environmental exposures), the Company does not expect that any costs that are reasonably possible to be incurred by the Company in connection with environmental matters in excess of the amounts accrued would have a material adverse effect on the Company's financial condition, results of operations or cash flows. As previously disclosed, the Company has had ongoing meetings with the Supreme Council for Environment in Bahrain (“SCE”) over processing a byproduct (“salt cakes”) stored at the Al Hafeerah site. The Company’s Bahrain operations that produced the salt cakes has ceased operations and are owned under a strategic venture for which its strategic venture partner owns a 35% minority interest. An Environmental Impact Assessment and Technical Feasibility Study were approved by the SCE during the first quarter of 2018. The Company has previously established a reserve of $7.0 million , which represents the Company's best estimate of the ultimate costs to be incurred to resolve this matter. The Company continues to evaluate this reserve and any future change in estimated costs could be material to the Company’s results of operations in any one period. On July 27, 2018, Brazil’s Federal and Rio de Janeiro State Public Prosecution Offices (MPF and MPE) filed a Civil Public Action against one of the Company's customers (CSN), the Company’s Brazilian subsidiary, the Municipality of Volta Redonda, Brazil, and the Instituto Estadual do Ambiente (local environmental protection agency) seeking the implementation of various measures to limit and reduce the accumulation of customer-owned slag at the site in Brazil. On August 6, 2018, the 3rd Federal Court in Volta Redonda granted the MPF and MPE an injunction against the same parties requiring, among other things, CSN and the Company’s Brazilian subsidiary to limit the volume of slag sent to the site. Because the customer owns the site and the slag located on the site, the Company believes that complying with this injunction is the steel producer’s responsibility. On March 18, 2019, the Court issued an order fining the Company 5,000 Brazilian real per day (or approximately $1,300 per day) and CSN 20,000 Brazilian real per day until the requirements of the injunction are met. This fine is not yet currently being enforced, and the Company is appealing the fine and the underlying injunction. Both the Company and CSN continue to have discussions with the governmental authorities on the injunction and the possible resolution of the underlying case. The Company does not believe that a loss relating to this matter is probable or estimable at this point. On October 19, 2018, local environmental authorities issued an enforcement action against the Company concerning the Company’s operations at a customer site in Ijmuiden, Netherlands. The enforcement action alleges violations of the Company’s environmental permit at the site, which restricts the release of any visible dust emissions. The enforcement action ordered the Company to cease all violations of the permit by October 31, 2018. The authorities have issued fines of approximately $0.3 million , with the possibility of additional fines for any future violations. The Company is vigorously contesting the enforcement action and fines and is also working with its customer to ensure the control of emissions. The Company has contractual indemnity rights from its customer, should it be required to pay the assessed fines. Brazilian Tax Disputes The Company is involved in a number of tax disputes with federal, state and municipal tax authorities in Brazil. These disputes are at various stages of the legal process, including the administrative review phase and the collection action phase, and include assessments of fixed amounts of principal and penalties, plus interest charges that increase at statutorily determined amounts per month and are assessed on the aggregate amount of the principal and penalties. In addition, the losing party, at the collection action or court of appeals phase, could be subject to a charge to cover statutorily mandated legal fees, which are generally calculated as a percentage of the total assessed amounts due, inclusive of penalty and interest. Many of the claims relate to value-added ("ICMS"), services and social security tax disputes. The largest proportion of the assessed amounts relate to ICMS claims filed by the State Revenue Authorities from the State of São Paulo, Brazil (the "SPRA"), encompassing the period from January 2002 to May 2005. In October 2009, the Company received notification of the SPRA’s final administrative decision regarding the levying of ICMS in the State of São Paulo in relation to services provided to a customer in the State between January 2004 and May 2005. As of March 31, 2019 , the principal amount of the tax assessment from the SPRA with regard to this case is approximately $2 million , with penalty, interest and fees assessed to date increasing such amount by an additional $21 million . On June 4, 2018, the Appellate Court of the State of Sao Paulo ruled in favor of the SPRA, but ruled that the assessed penalty should be reduced to approximately $2 million . After calculating the interest accrued on the penalty, the Company estimates that this ruling reduces the current overall liability for this case to approximately $9 million . The Company has appealed the ruling in favor of the SPRA to the Superior Court of Justice. Due to multiple court precedents in the Company’s favor, as well as the Company’s ability to appeal, the Company does not believe a loss is probable. Another ICMS tax case involving the SPRA refers to the tax period from January 2002 to December 2003. In December 2018, the administrative tribunal hearing the case upheld the Company's liability. The Company plans to appeal to the judicial phase. The aggregate amount assessed by the tax authorities in August 2005 was $6.5 million (the amounts with regard to this claim are valued as of the date of the assessment since it has not yet reached the collection phase), composed of a principal amount of $1.5 million , with penalty and interest assessed through that date increasing such amount by an additional $4.9 million . On December 6, 2018, the administrative tribunal reduced the applicable penalties to $1.2 million . After calculating the interest accrued on the current penalty, the Company estimates that this ruling reduces the current overall liability for this case to approximately $10 million . All such amounts include the effect of foreign currency translation. Due to multiple court precedents in the Company's favor the Company does not believe a loss is probable. The Company continues to believe that sufficient coverage for these claims exists as a result of the indemnification obligations of the Company's customer and such customer’s pledge of assets in connection with the October 2009 notice, as required by Brazilian law. The Company intends to continue its practice of vigorously defending itself against these tax claims under various alternatives, including judicial appeal. The Company will continue to evaluate its potential liability with regard to these claims on a quarterly basis; however, it is not possible to predict the ultimate outcome of these tax-related disputes in Brazil. No loss provision has been recorded in the Company's condensed consolidated financial statements for the disputes described above because the loss contingency is not deemed probable, and the Company does not expect that any costs that are reasonably possible to be incurred by the Company in connection with Brazilian tax disputes would have a material adverse effect on the Company's financial condition, results of operations or cash flows. Brazilian Labor Disputes The Company is subject to ongoing collective bargaining and individual labor claims in Brazil through the Harsco Metals & Minerals Segment which allege, among other things, the Company's failure to pay required amounts for overtime and vacation at certain sites. The Company is vigorously defending itself against these claims; however, litigation is inherently unpredictable, particularly in foreign jurisdictions. While the Company does not currently expect that the ultimate resolution of these claims will have a material adverse effect on the Company’s financial condition, results of operations or cash flows, it is not possible to predict the ultimate outcome of these labor-related disputes. As of March 31, 2019 and December 31, 2018 , the Company has established reserves of $7.0 million and $7.1 million , respectively, on the Company's Condensed Consolidated Balance Sheets for amounts considered to be probable and estimable. Customer Disputes The Company may, in the normal course of business, become involved in commercial disputes with subcontractors or customers. Although results of operations and cash flows for a given period could be adversely affected by a negative outcome in these or other lawsuits, claims or proceedings, management believes that the ultimate outcome of any ongoing matters will not have a material adverse effect on the Company's financial condition, results of operations or cash flows. Lima Refinery Litigation On April 8, 2016, Lima Refining Company filed a lawsuit against the Company in the District Court of Harris County, Texas related to a January 2015 explosion at an oil refinery operated by Lima Refining Company. The action seeks approximately $317 million plus interest in property damages, lost profits and business interruption damages. The action alleges the explosion occurred because of a defect in a heat exchange cooler manufactured by Hammco Corporation ("Hammco") in 2009, prior to the Company’s acquisition of Hammco in 2014. The Company is vigorously contesting the allegations against it. The Company has both an indemnity right from the sellers of Hammco and liability insurance coverage under various primary and excess policies that the Company believes will be available, if necessary, to cover substantially all such liability that might ultimately be incurred in the above action. As a result, the Company believes the situation will not result in a net unreimbursed loss. Other The Company is named as one of many defendants (approximately 90 or more in most cases) in legal actions in the U.S. alleging personal injury from exposure to airborne asbestos over the past several decades. In their suits, the plaintiffs have named as defendants, among others, many manufacturers, distributors and installers of numerous types of equipment or products that allegedly contained asbestos. The Company believes that the claims against it are without merit. The Company has never been a producer, manufacturer or processor of asbestos fibers. Any asbestos-containing part of a Company product used in the past was purchased from a supplier and the asbestos encapsulated in other materials such that airborne exposure, if it occurred, was not harmful and is not associated with the types of injuries alleged in the pending actions. At March 31, 2019 , there were approximately 17,127 pending asbestos personal injury actions filed against the Company. Of those actions, approximately 16,586 were filed in the New York Supreme Court (New York County), approximately 119 were filed in other New York State Supreme Court Counties and approximately 422 were filed in courts located in other states. The complaints in most of those actions generally follow a form that contains a standard damages demand of $20 million or $25 million , regardless of the individual plaintiff’s alleged medical condition, and without identifying any specific Company product. At March 31, 2019 , approximately 16,550 of the actions filed in New York Supreme Court (New York County) were on the Deferred/Inactive Docket created by the court in December 2002 for all pending and future asbestos actions filed by persons who cannot demonstrate that they have a malignant condition or discernible physical impairment. The remaining approximately 36 cases in New York County are pending on the Active or In Extremis Docket created for plaintiffs who can demonstrate a malignant condition or physical impairment. The Company has liability insurance coverage under various primary and excess policies that the Company believes will be available, if necessary, to substantially cover any liability that might ultimately be incurred in the asbestos actions referred to above. The costs and expenses of the asbestos actions are being paid by the Company's insurers. In view of the persistence of asbestos litigation in the U.S., the Company expects to continue to receive additional claims in the future. The Company intends to continue its practice of vigorously defending these claims and cases. At March 31, 2019 , the Company has obtained dismissal in approximately 28,189 cases by stipulation or summary judgment prior to trial. It is not possible to predict the ultimate outcome of asbestos-related actions in the U.S. due to the unpredictable nature of this litigation, and no loss provision has been recorded in the Company's condensed consolidated financial statements because a loss contingency is not deemed probable or estimable. Despite this uncertainty, and although results of operations and cash flows for a given period could be adversely affected by asbestos-related actions, the Company does not expect that any costs that are reasonably possible to be incurred by the Company in connection with asbestos litigation would have a material adverse effect on the Company's financial condition, results of operations or cash flows. The Company is subject to various other claims and legal proceedings covering a wide range of matters that arose in the ordinary course of business. In the opinion of management, all such matters are adequately covered by insurance or by established reserves, and, if not so covered, are without merit or are of such kind, or involve such amounts, as would not have a material adverse effect on the financial position, results of operations or cash flows of the Company. Insurance liabilities are recorded when it is probable that a liability has been incurred for a particular event and the amount of loss associated with the event can be reasonably estimated. Insurance reserves have been estimated based primarily upon actuarial calculations and reflect the undiscounted estimated liabilities for ultimate losses, including claims incurred but not reported. Inherent in these estimates are assumptions that are based on the Company's history of claims and losses, a detailed analysis of existing claims with respect to potential value, and current legal and legislative trends. If actual claims differ from those projected by management, changes (either increases or decreases) to insurance reserves may be required and would be recorded through income in the period the change was determined. When a recognized liability is covered by third-party insurance, the Company records an insurance claim receivable to reflect the covered liability. Insurance claim receivables are included in Other receivables on the Company's Condensed Consolidated Balance Sheets. See Note 1, Summary of Significant Accounting Policies, to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Shares | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Shares | Reconciliation of Basic and Diluted Shares Three Months Ended March 31 (In thousands, except per share amounts) 2019 2018 Income from continuing operations attributable to Harsco Corporation common stockholders $ 21,029 $ 18,260 Weighted-average shares outstanding - basic 79,907 80,650 Dilutive effect of stock-based compensation 1,746 2,894 Weighted-average shares outstanding - diluted 81,653 83,544 Earnings from continuing operations per common share, attributable to Harsco Corporation common stockholders: Basic $ 0.26 $ 0.23 Diluted $ 0.26 $ 0.22 The following average outstanding stock-based compensation units were not included in the computation of diluted earnings per share because the effect was antidilutive: Three Months Ended March 31 (In thousands) 2019 2018 Stock appreciation rights 608 696 Performance share units 233 — |
Derivative Instruments, Hedging
Derivative Instruments, Hedging Activities and Fair Value | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments, Hedging Activities And Fair Value Disclosure [Abstract] | |
Derivative Instruments, Hedging Activities and Fair Value | Derivative Instruments, Hedging Activities and Fair Value Derivative Instruments and Hedging Activities The Company uses derivative instruments, including foreign currency exchange forward contracts, interest rate swaps and cross-currency interest rate swaps ("CCIRs"), to manage certain foreign currency and interest rate exposures. Derivative instruments are viewed as risk management tools by the Company and are not used for trading or speculative purposes. All derivative instruments are recorded on the Condensed Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The Company utilizes market data or assumptions that the Company believes market participants would use in valuing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs), and (2) an entity’s own assumptions about market participant assumptions based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: • Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3—Inputs that are both significant to the fair value measurement and unobservable. In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information. Accordingly, the Company utilizes valuation techniques that maximize the use of observable inputs, such as forward rates, interest rates, the Company’s credit risk and counterparties’ credit risks, and which minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the ability to observe those inputs. Foreign currency exchange forward contracts, interest rate swaps and CCIRs are based upon pricing models using market-based inputs (Level 2). Model inputs can be verified and valuation techniques do not involve significant management judgment. The fair value of outstanding derivative contracts recorded as assets and liabilities on the Condensed Consolidated Balance Sheets was as follows: (In thousands) Balance Sheet Location Fair Value of Derivatives Designated as Hedging Instruments Fair Value of Derivatives Not Designated as Hedging Instruments Total Fair Value March 31, 2019 Asset derivatives (Level 2): Foreign currency exchange forward contracts Other current assets $ 2,275 $ 5,520 $ 7,795 Interest rate swaps Other current assets 736 — 736 Total $ 3,011 $ 5,520 $ 8,531 Liability derivatives (Level 2): Foreign currency exchange forward contracts Other current liabilities $ 121 $ 1,426 $ 1,547 Interest rate swaps Other current liabilities 96 — 96 Interest rate swaps Other liabilities 4,639 — 4,639 Total $ 4,856 $ 1,426 $ 6,282 December 31, 2018 Asset derivatives (Level 2): Foreign currency exchange forward contracts Other current assets $ 2,970 $ 589 $ 3,559 Interest rate swaps Other current assets 1,331 — 1,331 Interest rate swaps Other assets 128 — $ 128 Total $ 4,429 $ 589 $ 5,018 Liability derivatives (Level 2): Foreign currency exchange forward contracts Other current liabilities $ 24 $ 2,910 $ 2,934 Interest rate swaps Other liabilities 1,849 — 1,849 Total $ 1,873 $ 2,910 $ 4,783 All of the Company's derivatives are recorded on the Condensed Consolidated Balance Sheets at gross amounts and not offset. All of the Company's interest rate swaps, CCIRs and certain foreign currency exchange forward contracts are transacted under International Swaps and Derivatives Association ("ISDA") documentation. Each ISDA master agreement permits the net settlement of amounts owed in the event of default. The Company's derivative assets and liabilities subject to enforceable master netting arrangements resulted in a net liability of $1.0 million and $0.1 million at March 31, 2019 and December 31, 2018 , respectively. The effect of derivative instruments on the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income: Derivatives Designated as Hedging Instruments Amount Recognized in Other Comprehensive Income (“OCI”) on Derivatives Location of Amount Reclassified from Accumulated OCI into Income Amount Reclassified from Accumulated OCI into Income - Effective Portion or Equity Three Months Ended Three Months Ended March 31 March 31 (In thousands) 2019 2018 2019 2018 Foreign currency exchange forward contracts $ (712 ) $ 240 Product revenues $ (32 ) $ (212 ) Foreign currency exchange forward contracts (a) — — Retained earnings — (1,520 ) Interest rate swaps (3,309 ) 3,310 Interest expense (301 ) — Cross-currency interest rate swaps (b) (52 ) (93 ) Interest expense 314 271 (4,073 ) 3,457 $ (19 ) $ (1,461 ) (a) The Company has adopted the new revenue recognition standard utilizing the modified retrospective transition method, including use of practical expedients. See Note 2, Recently Adopted and Recently Issued Accounting Standards for additional information. (b) Amounts represent changes in foreign currency translation related to balances in Accumulated other comprehensive loss. The location and amount of gain (loss) recognized on the Condensed Consolidated Statements of Operations: Three Months Ended March 31 2019 2018 (in thousands) Product Revenues Interest Expense Product Revenues Cost of Products Sold Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded $ 217,768 $ (9,739 ) $ 163,829 $ 119,678 $ (9,583 ) Interest rate swaps: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — 301 — — — Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income 32 — 212 — — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value 78 — — (19 ) — Cross-currency interest rate swaps: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — (314 ) — — (271 ) Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives for the Three Months Ended March 31(c) (In thousands) 2019 2018 Foreign currency exchange forward contracts Cost of services and products sold $ 2,323 $ (5,466 ) (c) These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures. Foreign Currency Exchange Forward Contracts The Company conducts business in multiple currencies and, accordingly, is subject to the inherent risks associated with foreign exchange rate movements. Foreign currency-denominated assets and liabilities are translated into U.S. dollars at the exchange rates existing at the respective balance sheet dates, and income and expense items are translated at the average exchange rates during the respective periods. The Company uses derivative instruments to hedge cash flows related to foreign currency fluctuations. Foreign currency exchange forward contracts outstanding are part of a worldwide program to minimize foreign currency exchange operating income and balance sheet exposure by offsetting foreign currency exposures of certain future payments between the Company and various subsidiaries, suppliers or customers. The unsecured contracts are with major financial institutions. The Company may be exposed to credit loss in the event of non-performance by the contract counterparties. The Company evaluates the creditworthiness of the counterparties and does not expect default by them. Foreign currency exchange forward contracts are used to hedge commitments, such as foreign currency debt, firm purchase commitments and foreign currency cash flows for certain export sales transactions. Changes in the fair value of derivatives used to hedge foreign currency denominated balance sheet items are reported directly in earnings, along with offsetting transaction gains and losses on the items being hedged. Derivatives used to hedge forecasted cash flows associated with foreign currency commitments may be accounted for as cash flow hedges, as deemed appropriate, if the criteria for hedge accounting are met. Gains and losses on derivatives designated as cash flow hedges are deferred in Accumulated other comprehensive loss, a separate component of equity, and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. The ineffective portion of all hedges, if any, is recognized currently in earnings. The recognized gains and losses offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures. At March 31, 2019 and December 31, 2018 , the notional amounts of foreign currency exchange forward contracts were $444.3 million and $423.9 million , respectively. These contracts are primarily denominated in British pounds sterling and Euros and mature through October 2021 . In addition to foreign currency exchange forward contracts, the Company designates certain loans as hedges of net investments in international subsidiaries. The Company recorded pre-tax net gains of $4.8 million and $9.5 million for the three months ended March 31, 2019 and March 31, 2018 , respectively, in Accumulated other comprehensive loss . Interest Rate Swaps The Company uses interest rate swaps in conjunction with certain debt issuances in order to secure a fixed interest rate. Changes in the fair value attributed to the effect of the swaps’ interest spread and changes in the credit worthiness of the counter-parties are recorded in Accumulated other comprehensive loss. In January 2017 and February 2018, the Company entered into a series of interest rate swaps that cover the period from 2018 through 2022 and had the effect of converting $300.0 million of the Term Loan Facility from floating-rate to fixed-rate. The fixed rates provided by the swaps replace the adjusted LIBOR rate in the interest calculation, ranging from 2.12% for 2019 to 3.12% for 2022. The total notional of the Company's interest rate swaps was $300.0 million as of March 31, 2019 . Cross-Currency Interest Rate Swaps The Company may use CCIRs in conjunction with certain debt issuances in order to secure a fixed local currency interest rate. Under these CCIRs, the Company receives interest based on a fixed or floating U.S. dollar rate and pays interest on a fixed local currency rate based on the contractual amounts in dollars and the local currency, respectively. At maturity, there is also the payment of principal amounts between currencies. Changes in the fair value attributed to the effect of the swaps' interest spread and changes in the credit worthiness of the counter-parties are recorded in Accumulated other comprehensive loss. Changes in value attributed to the effect of foreign currency fluctuations are recorded in the Condensed Consolidated Statements of Operations and offset currency fluctuation effects on the debt principal. The Company had no outstanding CCIRs at March 31, 2019 . Fair Value of Other Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and short-term borrowings approximate fair value due to the short-term maturities of these assets and liabilities. At March 31, 2019 and December 31, 2018 , the total fair value of long-term debt (excluding deferred financing costs), including current maturities, was $657.4 million and $592.0 million , respectively, compared with a carrying value of $661.5 million and $605.4 million |
Review of Operations by Segment
Review of Operations by Segment | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Review of Operations by Segment | Review of Operations by Segment Three Months Ended March 31 (In thousands) 2019 2018 Revenues From Continuing Operations Harsco Metals & Minerals $ 261,312 $ 264,723 Harsco Industrial 117,385 83,598 Harsco Rail 68,591 59,678 Corporate — 39 Total Revenues From Continuing Operations $ 447,288 $ 408,038 Operating Income (Loss) From Continuing Operations Harsco Metals & Minerals $ 24,497 $ 27,735 Harsco Industrial 17,030 12,421 Harsco Rail 5,389 1,952 Corporate (8,670 ) (5,567 ) Total Operating Income From Continuing Operations $ 38,246 $ 36,541 Depreciation and Amortization Harsco Metals & Minerals $ 28,705 $ 29,085 Harsco Industrial 2,025 1,855 Harsco Rail 1,167 1,064 Corporate 1,352 1,348 Total Depreciation and Amortization $ 33,249 $ 33,352 Three Months Ended March 31 (In thousands) 2019 2018 Capital Expenditures Harsco Metals & Minerals $ 29,163 $ 25,176 Harsco Industrial 2,175 1,087 Harsco Rail 3,916 430 Corporate 1,153 204 Total Capital Expenditures $ 36,407 $ 26,897 Reconciliation of Segment Operating Income to Income From Continuing Operations Before Income Taxes and Equity Income Three Months Ended March 31 (In thousands) 2019 2018 Segment operating income $ 46,916 $ 42,108 General Corporate expense (8,670 ) (5,567 ) Operating income from continuing operations 38,246 36,541 Interest income 534 498 Interest expense (9,739 ) (9,583 ) Defined benefit pension income (expense) (1,337 ) 839 Income from continuing operations before income taxes and equity income $ 27,704 $ 28,295 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition 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 |
Other (Income) Expenses, Net
Other (Income) Expenses, Net | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expenses | Other Expenses, Net The major components of this Condensed Consolidated Statements of Operations caption are as follows: Three Months Ended March 31 (In thousands) 2019 2018 Employee termination benefit costs $ 2,598 $ 1,443 Other costs to exit activities 1,165 364 Impaired asset write-downs 214 9 Contingent consideration adjustments 369 — Net gains (2,271 ) — Other (199 ) 6 Other expenses, net $ 1,876 $ 1,822 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Components of Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is included in the Condensed Consolidated Statements of Equity. The components of Accumulated other comprehensive loss, net of the effect of income taxes, and activity for the three months ended March 31, 2018 and 2019 was as follows: Components of Accumulated Other Comprehensive Income (Loss) - Net of Tax (In thousands) Cumulative Foreign Exchange Translation Adjustments Effective Portion of Derivatives Designated as Hedging Instruments Cumulative Unrecognized Actuarial Losses on Pension Obligations Unrealized Gain (Loss) on Marketable Securities Total Balance at December 31, 2017 $ (111,567 ) $ 808 $ (435,840 ) $ 17 $ (546,582 ) Adoption of new accounting standard (a) — (1,520 ) — — (1,520 ) Other comprehensive income (loss) before reclassifications 12,501 (b) 2,768 (c) (13,945 ) (b) (14 ) 1,310 Amounts reclassified from accumulated other comprehensive loss, net of tax — (91 ) 4,944 — 4,853 Total other comprehensive income (loss) 12,501 2,677 (9,001 ) (14 ) 6,163 Other comprehensive income attributable to noncontrolling interests (1,278 ) — — — (1,278 ) Other comprehensive income (loss) attributable to Harsco Corporation 11,223 2,677 (9,001 ) (14 ) 4,885 Balance at March 31, 2018 $ (100,344 ) $ 1,965 $ (444,841 ) $ 3 $ (543,217 ) Components of Accumulated Other Comprehensive Income (Loss) - Net of Tax (In thousands) Cumulative Foreign Exchange Translation Adjustments Effective Portion of Derivatives Designated as Hedging Instruments Cumulative Unrecognized Actuarial Losses on Pension Obligations Unrealized Gain (Loss) on Marketable Securities Total Balance at December 31, 2018 $ (159,810 ) $ 1,389 $ (408,655 ) $ (31 ) $ (567,107 ) Adoption of new accounting standard (c) — — (21,429 ) (d) — (21,429 ) Other comprehensive income (loss) before reclassifications 11,725 (b) (3,084 ) (c) (6,573 ) (b) 15 2,083 Amounts reclassified from accumulated other comprehensive loss, net of tax (2,271 ) (63 ) 4,782 — 2,448 Total other comprehensive income (loss) 9,454 (3,147 ) (1,791 ) 15 4,531 Other comprehensive income attributable to noncontrolling interests (420 ) — — — (420 ) Other comprehensive income (loss) attributable to Harsco Corporation 9,034 (3,147 ) (1,791 ) 15 4,111 Balance at March 31, 2019 $ (150,776 ) $ (1,758 ) $ (431,875 ) $ (16 ) $ (584,425 ) (a) Represents the opening balance sheet adjustment to retained earnings related to the adoption of the revenue recognition standard adopted by the Company on January 1, 2018. (b) Principally foreign currency fluctuation. (c) Net change from periodic revaluations. (d) Represents the adoption of the new accounting standard on January 1, 2019 related to stranded tax effects from the Tax Act. See Note 2, Recently Adopted and Recently Issued Accounting Standards for more information. Amounts reclassified from accumulated other comprehensive loss are as follows: (In thousands) Three Months Ended Affected Caption in the Condensed Consolidated Statements of Operations March 31 March 31 Recognition of cumulative foreign currency translation adjustments: Gain on substantial liquidation of subsidiary (e) $ (2,271 ) $ — Other expenses, net Amortization of cash flow hedging instruments: Foreign currency exchange forward contracts $ (32 ) $ (212 ) Product revenues Cross-currency interest rate swaps 314 271 Interest expense Interest rate swaps (301 ) — Interest expense Total before tax (19 ) 59 Tax expense (44 ) (150 ) Total reclassification of cash flow hedging instruments, net of tax $ (63 ) $ (91 ) Amortization of defined benefit pension items (f) : Recognized losses $ 5,058 $ 5,142 Defined benefit pension income (expense) Recognized prior-service costs 66 (39 ) Defined benefit pension income (expense) Settlement/curtailment losses — 166 Defined benefit pension income (expense) Total before tax 5,124 5,269 Tax benefit (342 ) (325 ) Total reclassification of defined benefit pension items, net of tax $ 4,782 $ 4,944 (e) No tax impact. (f) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 9, 2019 the Company announced two separate strategic transactions that accelerate the transformation of the Company’s portfolio of businesses into a leading provider of environmental solutions and aligns with the Company’s strategy to decrease the complexity of the Company’s business portfolio by focusing on less cyclical and higher-growth businesses. The Company has entered into a definitive agreement to acquire CEHI Acquisition Corporation and Subsidiaries (“Clean Earth”), a leader in processing special waste and hazardous and non-hazardous waste, from Compass Diversified Holdings for approximately $625 million in cash, subject to post-closing adjustments. The transaction has been approved by the Company's Board of Directors ("Board") and is expected to close during the next few months, subject to customary closing conditions, including receipt of certain regulatory approvals. There are no material financial or other contingencies to close the transaction. In addition, the Company has entered into a definitive agreement to sell the Harsco Industrial Air-X-Changers business to Chart Industries, Inc. for $592 million in cash, subject to post-closing adjustments. The transaction has been approved by the Company's Board and is expected to close during the next few months, subject to customary closing conditions, including receipt of certain regulatory approvals. There are no material financial or other contingencies to close the transaction. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Harsco Corporation (the "Company") has prepared these unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited condensed consolidated financial statements do not include all information and disclosure required by U.S. GAAP for annual financial statements. The December 31, 2018 Condensed Consolidated Balance Sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2018 audited consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . In the opinion of management, all adjustments (all of which are of a normal recurring nature) that are necessary for a fair statement are reflected in the unaudited condensed consolidated financial statements. Reclassifications Certain reclassifications have been made to prior year amounts to conform with current year classifications. |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted and Recently Issued Accounting Standards The following accounting standards have been adopted in 2019: On January 1, 2019, the Company adopted changes issued by the Financial Accounting Standards Board (“FASB”) related to accounting for leases. The changes introduce a lessee model that brings most leases onto the balance sheet. The changes also align many of the underlying principles of the new lessor model with those in the FASB’s new revenue recognition standard. Furthermore, the changes address other concerns related to the current leases model such as eliminating the requirement in current guidance for an entity to use bright-line tests in determining lease classification. The changes also require lessors to increase the transparency of their exposure to changes in value of their residual assets and how they manage that exposure. The Company elected the package of practical expedients permitted under the transition, which among other items, allowed the carry forward of the historical lease classification. The Company has elected to apply the transition requirements at the January 1, 2019 effective date and therefore, comparative information has not been restated and continues to be reported under U.S. GAAP in effect for those periods. The changes had a significant impact on the Condensed Consolidated Balance Sheets upon adoption and the Company recorded Right-of-use ("ROU") assets and lease liabilities of $53.0 million and $53.4 million , respectively. The difference between the ROU assets and lease liabilities was recorded primarily as adjustments to other assets and liabilities where prepaid rent and deferred expenses were previously recorded. Additionally, the Company's accounting for finance leases remained consistent. The changes did not have an impact on the Company’s Condensed Consolidated Statements of Operations or Condensed Consolidated Statements of Cash Flows. The discount rates used to calculate the ROU assets and lease liabilities as of the effective date were based on the remaining lease terms as of the effective date. See Note 6, Leases for additional information. On January 1, 2019, the Company adopted changes issued by the FASB which expand and refine hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. Upon adoption, the Company’s recognition model for the excluded component was modified from a mark-to-market approach to an amortization approach for hedging relationships. Hedging relationships entered into on or after January 1, 2019 will be under the amortization approach while those entered into before January 1, 2019 will continue to be recognized under the mark-to-market approach. As such, there was no effect of applying this election reflected as an adjustment to Accumulated other comprehensive loss with a corresponding adjustment to the opening balance of Retained earnings. Presentation and disclosure amendments are required to be applied prospectively. Other than required expanded disclosures, the adoption of these changes did not have a material impact on the Company's condensed consolidated financial statements. On January 1, 2019, the Company adopted changes issued by the FASB which allow entities to reclassify stranded income tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income to retained earnings in the consolidated financial statements. Under the Tax Act, deferred taxes were adjusted to reflect the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate, which left the tax effects on items within accumulated other comprehensive income stranded at historical tax rates. The adoption of these changes resulted in the Company reclassifying approximately $21 million of stranded income tax effects into Retained earnings. The following accounting standards have been issued and become effective for the Company at a future date: In June 2016, the FASB issued changes which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The changes become effective for the Company on January 1, 2020, with early adoption permitted. Management has not yet completed the assessment of the impact of the new standard on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued changes that remove the second step of the annual goodwill impairment test, which requires a hypothetical purchase price allocation. The changes provide that the amount of goodwill impairment will be equal to the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains largely unchanged. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. The changes become effective for the Company on January 1, 2020. Management has determined that these changes will not have a material impact on the Company's condensed consolidated financial statements. However, should the Company be required to record a goodwill impairment charge in future periods, the amount recorded may differ compared to any amounts that might be recorded under current practice. In August 2018, the FASB issued changes which modify the disclosure requirements for fair value measurements. The amendments in this update remove the requirement to disclose the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The changes require disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The changes become effective for the Company on January 1, 2020. Other than required expanded disclosures, the adoption of these changes will not have a material impact on the Company's condensed consolidated financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of assets acquired and liabilities assumed | The fair value recorded for the assets acquired and liabilities assumed for Altek is as follows: Final Valuation (In millions) June 30 2018 Measurement Period Adjustments (a) March 31 Cash and cash equivalents $ 1.7 $ — $ 1.7 Net working capital (1.5 ) 0.2 (1.3 ) Property, plant and equipment 3.3 — 3.3 Intangible assets 52.5 0.2 52.7 Goodwill 20.9 1.6 22.5 Net deferred tax liabilities (8.5 ) — (8.5 ) Other liabilities (0.3 ) — (0.3 ) Total identifiable net assets of Altek $ 68.1 $ 2.0 $ 70.1 |
Summary of changes in fair value of contingent consideration | The following table reflects the changes in the fair value of contingent consideration: (In thousands) Contingent Consideration Balance, December 31, 2018 $ 8,420 Fair value adjustment (b) 369 Foreign currency translation 186 Balance, March 31, 2019 $ 8,975 (b) These amounts are recorded in the caption Other expenses, net on the Condensed Consolidated Statements of Operations. |
Accounts Receivable and Inven_2
Accounts Receivable and Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounts Receivable And Inventories | |
Schedule of accounts receivable | Accounts receivable consist of the following: (In thousands) March 31 December 31 Trade accounts receivable $ 301,439 $ 295,847 Less: Allowance for doubtful accounts (4,644 ) (4,634 ) Trade accounts receivable, net $ 296,795 $ 291,213 Other receivables (a) $ 51,130 $ 54,182 |
Schedule of provision for doubtful accounts related to trade accounts receivable | The provision (benefit) for doubtful accounts related to trade accounts receivable was as follows: Three Months Ended March 31 (In thousands) 2019 2018 Provision (benefit) for doubtful accounts related to trade accounts receivable $ 26 $ (46 ) |
Schedule of inventories | Inventories consist of the following: (In thousands) March 31 December 31 Finished goods $ 19,089 $ 17,223 Work-in-process 21,715 21,787 Raw materials and purchased parts 82,983 72,194 Stores and supplies 23,909 21,907 Total inventories $ 147,696 $ 133,111 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment consists of the following: (In thousands) March 31 December 31 Land $ 10,515 $ 10,621 Land improvements 15,932 16,156 Buildings and improvements 190,715 191,072 Machinery and equipment 1,566,706 1,538,166 Uncompleted construction 42,493 37,713 Gross property, plant and equipment 1,826,361 1,793,728 Less: Accumulated depreciation (1,342,913 ) (1,323,828 ) Property, plant and equipment, net $ 483,448 $ 469,900 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense and Supplemental Cash Flow and Additional Information | The components of lease expense were as follows: Three Months Ended (In thousands) March 31 Finance leases: Amortization expense $ 310 Interest on lease liabilities 4 Operating leases 4,608 Short-term leases 4,669 Variable lease expense 314 Total lease expense $ 9,905 Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) March 31 Cash paid for amounts included in the measurement of lease liabilities: Cash flows from operating activities - Operating leases $ 4,670 Cash flows from financing activities - Finance leases 363 Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) $ 53,750 Finance leases 373 (a) Includes ROU assets of $53.0 million March 31 Other information: Weighted average remaining lease term - Operating leases (in years) 4.42 Weighted average remaining lease term - Finance leases (in years) 2.01 Weighted average discount rate - Operating leases 6.9 % Weighted average discount rate - Finance leases 4.1 % |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: (In thousands) March 31 Operating Leases: Operating lease right-of-use assets $ 49,584 Other current liabilities 12,936 Operating lease liabilities 37,037 Finance Leases: Property, plant and equipment, net $ 1,286 Current maturities of long-term debt 1,054 Long-term debt 945 |
Maturities of Operating Lease Liabilities | Maturities of lease liabilities were as follows: (In thousand) Operating Leases Finance Leases Year Ending December 31 st : 2019 (excluding the three months ended March 31, 2019) $ 12,210 $ 1,027 2020 12,943 631 2021 9,775 295 2022 7,563 117 2023 6,254 16 After 2023 21,576 2 Total lease payments 70,321 2,088 Less imputed interest (20,348 ) (89 ) Total $ 49,973 $ 1,999 |
Maturities of Finance Lease Liabilities | Maturities of lease liabilities were as follows: (In thousand) Operating Leases Finance Leases Year Ending December 31 st : 2019 (excluding the three months ended March 31, 2019) $ 12,210 $ 1,027 2020 12,943 631 2021 9,775 295 2022 7,563 117 2023 6,254 16 After 2023 21,576 2 Total lease payments 70,321 2,088 Less imputed interest (20,348 ) (89 ) Total $ 49,973 $ 1,999 |
Future Minimum Payments Under Operating Leases with Noncancelable Terms | As previously disclosed, under then in effect lease accounting in accordance with U.S. GAAP, future minimum payments under operating leases with noncancelable terms were as follows as of December 31, 2018: (In thousands) 2019 $ 13,985 2020 12,204 2021 9,448 2022 7,706 2023 6,201 After 2023 28,442 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in carrying amounts of goodwill by segment | The following table reflects the changes in carrying amounts of goodwill by segment for the three months ended March 31, 2019 : (In thousands) Harsco Metals & Minerals Segment Harsco Industrial Segment Harsco Rail Segment Consolidated Totals Balance at December 31, 2018 $ 391,687 $ 6,839 $ 13,026 $ 411,552 Foreign currency translation 897 — — 897 Balance at March 31, 2019 $ 392,584 $ 6,839 $ 13,026 $ 412,449 |
Schedule of intangible assets by class | Intangible assets included in the caption, Intangible assets, net, on the Condensed Consolidated Balance Sheets consist of the following: March 31, 2019 December 31, 2018 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer related $ 137,242 $ 101,090 $ 136,307 $ 99,383 Patents 2,597 2,505 2,598 2,503 Technology related 36,572 3,599 35,831 2,681 Trade names 9,298 2,051 9,212 1,897 Other 5,929 3,640 5,865 3,524 Total $ 191,638 $ 112,885 $ 189,813 $ 109,988 |
Schedule of amortization expense | Amortization expense for intangible assets was as follows: Three Months Ended March 31 (In thousands) 2019 2018 Amortization expense for intangible assets $ 2,352 $ 1,282 |
Schedule of estimated amortization expense | The estimated amortization expense for the next five fiscal years based on current intangible assets is as follows: (In thousands) 2019 2020 2021 2022 2023 Estimated amortization expense (a) $ 9,000 $ 8,750 $ 8,500 $ 8,250 $ 8,250 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of net benefit costs | Three Months Ended March 31 Defined Benefit Pension Plans Net Periodic Pension Cost (Benefit) U.S. Plans International Plans (In thousands) 2019 2018 2019 2018 Service costs $ 10 $ 10 $ 356 $ 386 Interest costs 2,651 2,391 5,664 5,672 Expected return on plan assets (2,593 ) (3,017 ) (9,517 ) (11,145 ) Recognized prior service costs — — 66 (39 ) Recognized loss 1,405 1,302 3,653 3,840 Settlement/curtailment losses — 166 — — Defined benefit pension plans net periodic pension cost (benefit) $ 1,473 $ 852 $ 222 $ (1,286 ) |
Schedule of contributions to pension plans | Three Months Ended Company Contributions March 31 (In thousands) 2019 2018 Defined benefit pension plans (U.S.) $ 1,479 $ 1,284 Defined benefit pension plans (International) 9,270 9,734 Multiemployer pension plans 521 501 Defined contribution pension plans 3,390 2,835 |
Reconciliation of Basic and D_2
Reconciliation of Basic and Diluted Shares (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted shares | Three Months Ended March 31 (In thousands, except per share amounts) 2019 2018 Income from continuing operations attributable to Harsco Corporation common stockholders $ 21,029 $ 18,260 Weighted-average shares outstanding - basic 79,907 80,650 Dilutive effect of stock-based compensation 1,746 2,894 Weighted-average shares outstanding - diluted 81,653 83,544 Earnings from continuing operations per common share, attributable to Harsco Corporation common stockholders: Basic $ 0.26 $ 0.23 Diluted $ 0.26 $ 0.22 |
Schedule of antidilutive securities excluded from computation of earnings per share | The following average outstanding stock-based compensation units were not included in the computation of diluted earnings per share because the effect was antidilutive: Three Months Ended March 31 (In thousands) 2019 2018 Stock appreciation rights 608 696 Performance share units 233 — |
Derivative Instruments, Hedgi_2
Derivative Instruments, Hedging Activities and Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments, Hedging Activities And Fair Value Disclosure [Abstract] | |
Schedule of fair value of outstanding derivative contracts | (In thousands) Balance Sheet Location Fair Value of Derivatives Designated as Hedging Instruments Fair Value of Derivatives Not Designated as Hedging Instruments Total Fair Value March 31, 2019 Asset derivatives (Level 2): Foreign currency exchange forward contracts Other current assets $ 2,275 $ 5,520 $ 7,795 Interest rate swaps Other current assets 736 — 736 Total $ 3,011 $ 5,520 $ 8,531 Liability derivatives (Level 2): Foreign currency exchange forward contracts Other current liabilities $ 121 $ 1,426 $ 1,547 Interest rate swaps Other current liabilities 96 — 96 Interest rate swaps Other liabilities 4,639 — 4,639 Total $ 4,856 $ 1,426 $ 6,282 December 31, 2018 Asset derivatives (Level 2): Foreign currency exchange forward contracts Other current assets $ 2,970 $ 589 $ 3,559 Interest rate swaps Other current assets 1,331 — 1,331 Interest rate swaps Other assets 128 — $ 128 Total $ 4,429 $ 589 $ 5,018 Liability derivatives (Level 2): Foreign currency exchange forward contracts Other current liabilities $ 24 $ 2,910 $ 2,934 Interest rate swaps Other liabilities 1,849 — 1,849 Total $ 1,873 $ 2,910 $ 4,783 |
Schedule of effect of derivative instruments | Derivatives Designated as Hedging Instruments Amount Recognized in Other Comprehensive Income (“OCI”) on Derivatives Location of Amount Reclassified from Accumulated OCI into Income Amount Reclassified from Accumulated OCI into Income - Effective Portion or Equity Three Months Ended Three Months Ended March 31 March 31 (In thousands) 2019 2018 2019 2018 Foreign currency exchange forward contracts $ (712 ) $ 240 Product revenues $ (32 ) $ (212 ) Foreign currency exchange forward contracts (a) — — Retained earnings — (1,520 ) Interest rate swaps (3,309 ) 3,310 Interest expense (301 ) — Cross-currency interest rate swaps (b) (52 ) (93 ) Interest expense 314 271 (4,073 ) 3,457 $ (19 ) $ (1,461 ) (a) The Company has adopted the new revenue recognition standard utilizing the modified retrospective transition method, including use of practical expedients. See Note 2, Recently Adopted and Recently Issued Accounting Standards for additional information. (b) Amounts represent changes in foreign currency translation related to balances in Accumulated other comprehensive loss. The location and amount of gain (loss) recognized on the Condensed Consolidated Statements of Operations: Three Months Ended March 31 2019 2018 (in thousands) Product Revenues Interest Expense Product Revenues Cost of Products Sold Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded $ 217,768 $ (9,739 ) $ 163,829 $ 119,678 $ (9,583 ) Interest rate swaps: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — 301 — — — Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income 32 — 212 — — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value 78 — — (19 ) — Cross-currency interest rate swaps: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — (314 ) — — (271 ) Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives for the Three Months Ended March 31(c) (In thousands) 2019 2018 Foreign currency exchange forward contracts Cost of services and products sold $ 2,323 $ (5,466 ) (c) These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures. |
Review of Operations by Segme_2
Review of Operations by Segment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of operations by segment | Three Months Ended March 31 (In thousands) 2019 2018 Revenues From Continuing Operations Harsco Metals & Minerals $ 261,312 $ 264,723 Harsco Industrial 117,385 83,598 Harsco Rail 68,591 59,678 Corporate — 39 Total Revenues From Continuing Operations $ 447,288 $ 408,038 Operating Income (Loss) From Continuing Operations Harsco Metals & Minerals $ 24,497 $ 27,735 Harsco Industrial 17,030 12,421 Harsco Rail 5,389 1,952 Corporate (8,670 ) (5,567 ) Total Operating Income From Continuing Operations $ 38,246 $ 36,541 Depreciation and Amortization Harsco Metals & Minerals $ 28,705 $ 29,085 Harsco Industrial 2,025 1,855 Harsco Rail 1,167 1,064 Corporate 1,352 1,348 Total Depreciation and Amortization $ 33,249 $ 33,352 Three Months Ended March 31 (In thousands) 2019 2018 Capital Expenditures Harsco Metals & Minerals $ 29,163 $ 25,176 Harsco Industrial 2,175 1,087 Harsco Rail 3,916 430 Corporate 1,153 204 Total Capital Expenditures $ 36,407 $ 26,897 |
Reconciliation of segment operating income to income from continuing operations before income taxes and equity income | Reconciliation of Segment Operating Income to Income From Continuing Operations Before Income Taxes and Equity Income Three Months Ended March 31 (In thousands) 2019 2018 Segment operating income $ 46,916 $ 42,108 General Corporate expense (8,670 ) (5,567 ) Operating income from continuing operations 38,246 36,541 Interest income 534 498 Interest expense (9,739 ) (9,583 ) Defined benefit pension income (expense) (1,337 ) 839 Income from continuing operations before income taxes and equity income $ 27,704 $ 28,295 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of revenues by primary geographical markets | 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. |
Other (Income) Expenses, Net (T
Other (Income) Expenses, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of other (income) expenses | The major components of this Condensed Consolidated Statements of Operations caption are as follows: Three Months Ended March 31 (In thousands) 2019 2018 Employee termination benefit costs $ 2,598 $ 1,443 Other costs to exit activities 1,165 364 Impaired asset write-downs 214 9 Contingent consideration adjustments 369 — Net gains (2,271 ) — Other (199 ) 6 Other expenses, net $ 1,876 $ 1,822 |
Components of Accumulated Oth_2
Components of Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive loss | The components of Accumulated other comprehensive loss, net of the effect of income taxes, and activity for the three months ended March 31, 2018 and 2019 was as follows: Components of Accumulated Other Comprehensive Income (Loss) - Net of Tax (In thousands) Cumulative Foreign Exchange Translation Adjustments Effective Portion of Derivatives Designated as Hedging Instruments Cumulative Unrecognized Actuarial Losses on Pension Obligations Unrealized Gain (Loss) on Marketable Securities Total Balance at December 31, 2017 $ (111,567 ) $ 808 $ (435,840 ) $ 17 $ (546,582 ) Adoption of new accounting standard (a) — (1,520 ) — — (1,520 ) Other comprehensive income (loss) before reclassifications 12,501 (b) 2,768 (c) (13,945 ) (b) (14 ) 1,310 Amounts reclassified from accumulated other comprehensive loss, net of tax — (91 ) 4,944 — 4,853 Total other comprehensive income (loss) 12,501 2,677 (9,001 ) (14 ) 6,163 Other comprehensive income attributable to noncontrolling interests (1,278 ) — — — (1,278 ) Other comprehensive income (loss) attributable to Harsco Corporation 11,223 2,677 (9,001 ) (14 ) 4,885 Balance at March 31, 2018 $ (100,344 ) $ 1,965 $ (444,841 ) $ 3 $ (543,217 ) Components of Accumulated Other Comprehensive Income (Loss) - Net of Tax (In thousands) Cumulative Foreign Exchange Translation Adjustments Effective Portion of Derivatives Designated as Hedging Instruments Cumulative Unrecognized Actuarial Losses on Pension Obligations Unrealized Gain (Loss) on Marketable Securities Total Balance at December 31, 2018 $ (159,810 ) $ 1,389 $ (408,655 ) $ (31 ) $ (567,107 ) Adoption of new accounting standard (c) — — (21,429 ) (d) — (21,429 ) Other comprehensive income (loss) before reclassifications 11,725 (b) (3,084 ) (c) (6,573 ) (b) 15 2,083 Amounts reclassified from accumulated other comprehensive loss, net of tax (2,271 ) (63 ) 4,782 — 2,448 Total other comprehensive income (loss) 9,454 (3,147 ) (1,791 ) 15 4,531 Other comprehensive income attributable to noncontrolling interests (420 ) — — — (420 ) Other comprehensive income (loss) attributable to Harsco Corporation 9,034 (3,147 ) (1,791 ) 15 4,111 Balance at March 31, 2019 $ (150,776 ) $ (1,758 ) $ (431,875 ) $ (16 ) $ (584,425 ) (a) Represents the opening balance sheet adjustment to retained earnings related to the adoption of the revenue recognition standard adopted by the Company on January 1, 2018. (b) Principally foreign currency fluctuation. (c) Net change from periodic revaluations. |
Reclassification out of accumulated other comprehensive income | Amounts reclassified from accumulated other comprehensive loss are as follows: (In thousands) Three Months Ended Affected Caption in the Condensed Consolidated Statements of Operations March 31 March 31 Recognition of cumulative foreign currency translation adjustments: Gain on substantial liquidation of subsidiary (e) $ (2,271 ) $ — Other expenses, net Amortization of cash flow hedging instruments: Foreign currency exchange forward contracts $ (32 ) $ (212 ) Product revenues Cross-currency interest rate swaps 314 271 Interest expense Interest rate swaps (301 ) — Interest expense Total before tax (19 ) 59 Tax expense (44 ) (150 ) Total reclassification of cash flow hedging instruments, net of tax $ (63 ) $ (91 ) Amortization of defined benefit pension items (f) : Recognized losses $ 5,058 $ 5,142 Defined benefit pension income (expense) Recognized prior-service costs 66 (39 ) Defined benefit pension income (expense) Settlement/curtailment losses — 166 Defined benefit pension income (expense) Total before tax 5,124 5,269 Tax benefit (342 ) (325 ) Total reclassification of defined benefit pension items, net of tax $ 4,782 $ 4,944 (e) No tax impact. (f) |
Recently Adopted and Recently_2
Recently Adopted and Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets, net | $ 49,584 | |
Lease liabilities | 49,973 | |
Stranded income tax effects in accumulated other comprehensive income | $ 21,000 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets, net | $ 53,000 | |
Lease liabilities | $ 53,400 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - 1 months ended May 31, 2018 - Altek £ in Millions, $ in Millions | GBP (£) | USD ($) | USD ($) |
Business Acquisition [Line Items] | |||
Purchase price | £ 45 | $ 60 | |
Additional contingent consideration | £ 25 | $ 33 | |
Payments to Acquire Businesses, Net of Cash Acquired | $ 59.4 | ||
Estimated preliminary fair value | $ 12.1 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 412,449 | $ 411,552 | |
Altek | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 1,700 | $ 1,700 | |
Net working capital | (1,300) | (1,500) | |
Property, plant and equipment | 3,300 | 3,300 | |
Intangible assets | 52,700 | 52,500 | |
Goodwill | 22,500 | 20,900 | |
Net deferred tax liabilities | (8,500) | (8,500) | |
Other liabilities | (300) | (300) | |
Total identifiable net assets of Altek | 70,100 | $ 68,100 | |
Measurement Period Adjustments | |||
Net working capital | 200 | ||
Intangible assets | 200 | ||
Goodwill | 1,600 | ||
Total identifiable net assets of Altek | $ 2,000 |
Acquisitions - Changes in Fair
Acquisitions - Changes in Fair Value of Contingent Consideration (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Contingent Consideration | ||
Balance, December 31, 2018 | $ 8,420 | |
Fair value adjustment | 369 | $ 0 |
Foreign currency translation | 186 | |
Balance, March 31, 2019 | $ 8,975 |
Accounts Receivable and Inven_3
Accounts Receivable and Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2016 | |
Accounts receivable | ||||
Trade accounts receivable | $ 301,439 | $ 295,847 | ||
Less: Allowance for doubtful accounts | (4,644) | (4,634) | ||
Trade accounts receivable, net | 296,795 | 291,213 | ||
Other receivables | 51,130 | 54,182 | ||
Provision for doubtful accounts related to trade accounts receivable | 26 | $ (46) | ||
Inventories | ||||
Finished goods | 19,089 | 17,223 | ||
Work-in-process | 21,715 | 21,787 | ||
Raw materials and purchased parts | 82,983 | 72,194 | ||
Stores and supplies | 23,909 | 21,907 | ||
Inventories | 147,696 | 133,111 | ||
Inventory for Contracts | ||||
Loss provision that exceeds accumulated contract costs | 6,800 | |||
Net customer advances | 64,500 | 69,000 | ||
Contract estimated forward loss provision for Harsco Rail Segment | $ 1,800 | $ 45,100 | ||
Revenues | 447,288 | 408,038 | ||
SBB [Member] | ||||
Inventory for Contracts | ||||
Revenues | $ 4,700 | $ 7,900 | ||
Contract 2 [Member] | SBB [Member] | ||||
Inventory for Contracts | ||||
Percentage complete | 30.00% |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment | ||
Gross property, plant and equipment | $ 1,826,361 | $ 1,793,728 |
Less: Accumulated depreciation | (1,342,913) | (1,323,828) |
Property, plant and equipment, net | 483,448 | 469,900 |
Land | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 10,515 | 10,621 |
Land improvements | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 15,932 | 16,156 |
Buildings and improvements | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 190,715 | 191,072 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 1,566,706 | 1,538,166 |
Construction in progress | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | $ 42,493 | $ 37,713 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term - Operating leases (in years) | 4 years 5 months 1 day |
Termination period | 1 year |
Operating lease not yet commenced | $ 5 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term - Operating leases (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term - Operating leases (in years) | 24 years 6 months |
Extension period | 10 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance leases: | |
Amortization expense | $ 310 |
Interest on lease liabilities | 4 |
Operating leases | 4,608 |
Short-term leases | 4,669 |
Variable lease expense | 314 |
Total lease expense | $ 9,905 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2019 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Cash flows from operating activities - Operating leases | $ 4,670 | |
Cash flows from financing activities - Finance leases | 363 | |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 53,000 | 53,750 |
Finance leases | $ 373 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases: | |
Right-of-use assets, net | $ 49,584 |
Other current liabilities | 12,936 |
Operating lease liabilities | 37,037 |
Finance Leases: | |
Property, plant and equipment, net | 1,286 |
Current maturities of long-term debt | 1,054 |
Long-term debt | $ 945 |
Leases - Supplemental Additiona
Leases - Supplemental Additional Information (Details) | Mar. 31, 2019 |
Other information: | |
Weighted average remaining lease term - Operating leases (in years) | 4 years 5 months 1 day |
Weighted average remaining lease term - Finance leases (in years) | 2 years 3 days |
Weighted average discount rate - Operating leases | 6.90% |
Weighted average discount rate - Finance leases | 4.10% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 (excluding the three months ended March 31, 2019) | $ 12,210 |
2020 | 12,943 |
2021 | 9,775 |
2022 | 7,563 |
2023 | 6,254 |
After 2023 | 21,576 |
Total lease payments | 70,321 |
Less imputed interest | (20,348) |
Total | 49,973 |
Finance Leases | |
2019 (excluding the three months ended March 31, 2019) | 1,027 |
2020 | 631 |
2021 | 295 |
2022 | 117 |
2023 | 16 |
After 2023 | 2 |
Total lease payments | 2,088 |
Less imputed interest | (89) |
Total | $ 1,999 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments Under Operating Leases with Noncancelable Terms (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 13,985 |
2020 | 12,204 |
2021 | 9,448 |
2022 | 7,706 |
2023 | 6,201 |
After 2023 | $ 28,442 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amounts of Goodwill by Segment (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Changes in carrying amounts of goodwill | |
Balance at December 31, 2018 | $ 411,552 |
Foreign currency translation | 897 |
Balance at March 31, 2019 | 412,449 |
Harsco Metals & Minerals Segment | |
Changes in carrying amounts of goodwill | |
Balance at December 31, 2018 | 391,687 |
Foreign currency translation | 897 |
Balance at March 31, 2019 | 392,584 |
Harsco Industrial Segment | |
Changes in carrying amounts of goodwill | |
Balance at December 31, 2018 | 6,839 |
Foreign currency translation | 0 |
Balance at March 31, 2019 | 6,839 |
Harsco Rail Segment | |
Changes in carrying amounts of goodwill | |
Balance at December 31, 2018 | 13,026 |
Foreign currency translation | 0 |
Balance at March 31, 2019 | $ 13,026 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Intangible Assets, by category | |||
Gross Carrying Amount | $ 191,638 | $ 189,813 | |
Accumulated Amortization | 112,885 | 109,988 | |
Amortization expense for intangible assets | 2,352 | $ 1,282 | |
Estimated amortization expense for next 5 years | |||
2019 | 9,000 | ||
2020 | 8,750 | ||
2021 | 8,500 | ||
2022 | 8,250 | ||
2023 | 8,250 | ||
Customer related | |||
Intangible Assets, by category | |||
Gross Carrying Amount | 137,242 | 136,307 | |
Accumulated Amortization | 101,090 | 99,383 | |
Patents | |||
Intangible Assets, by category | |||
Gross Carrying Amount | 2,597 | 2,598 | |
Accumulated Amortization | 2,505 | 2,503 | |
Technology related | |||
Intangible Assets, by category | |||
Gross Carrying Amount | 36,572 | 35,831 | |
Accumulated Amortization | 3,599 | 2,681 | |
Trade names | |||
Intangible Assets, by category | |||
Gross Carrying Amount | 9,298 | 9,212 | |
Accumulated Amortization | 2,051 | 1,897 | |
Other | |||
Intangible Assets, by category | |||
Gross Carrying Amount | 5,929 | 5,865 | |
Accumulated Amortization | $ 3,640 | $ 3,524 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined benefit plans: | ||
Multiemployer pension plans | $ 521 | $ 501 |
Defined contribution pension plans | 3,390 | 2,835 |
Pension Plan | U.S. Plans | ||
Defined benefit plans: | ||
Service cost | 10 | 10 |
Interest cost | 2,651 | 2,391 |
Expected return on plan assets | (2,593) | (3,017) |
Recognized prior service costs | 0 | 0 |
Recognized loss | 1,405 | 1,302 |
Settlement/curtailment losses | 0 | (166) |
Defined benefit pension plans net periodic pension cost (benefit) | 1,473 | 852 |
Defined benefit pension plan | 1,479 | 1,284 |
Anticipated contributions to defined benefit pension plans during the remainder of the fiscal year | 7,000 | |
Pension Plan | International Plans | ||
Defined benefit plans: | ||
Service cost | 356 | 386 |
Interest cost | 5,664 | 5,672 |
Expected return on plan assets | (9,517) | (11,145) |
Recognized prior service costs | 66 | (39) |
Recognized loss | 3,653 | 3,840 |
Settlement/curtailment losses | 0 | 0 |
Defined benefit pension plans net periodic pension cost (benefit) | 222 | (1,286) |
Defined benefit pension plan | 9,270 | $ 9,734 |
Anticipated contributions to defined benefit pension plans during the remainder of the fiscal year | $ 11,500 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 4,855 | $ 8,266 |
Unrecognized income tax benefits including interest and penalties | 3,500 | |
Portion of unrecognized income tax benefits, expected to be recognized upon settlement of tax examinations and the expiration of various statutes of limitations within next twelve months | $ 100 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | |||
Aug. 31, 2005USD ($) | Mar. 31, 2019USD ($)claimdefendantcase | Mar. 31, 2019BRL (R$)claimcase | Dec. 31, 2018USD ($) | Apr. 08, 2016USD ($) | |
Commitments and Contingencies | |||||
Minority interest | 35.00% | 35.00% | |||
Reserve for loss contingencies | $ 7,000,000 | ||||
Penalties per day | 1,300 | R$ 5000 | |||
Lima Refinery Litigation | |||||
Commitments and Contingencies | |||||
Loss contingency damages sought | $ 317,000,000 | ||||
NETHERLANDS | |||||
Commitments and Contingencies | |||||
Damages sought - interest, penalties and fees | 300,000 | ||||
Brazilian Tax Disputes - Jan 2004 through May 2005 | Sao Paulo State Revenue Authority | |||||
Commitments and Contingencies | |||||
Damages sought - principal | 2,000,000 | ||||
Damages sought - interest, penalties and fees | 21,000,000 | ||||
Loss Contingency, Reduced Penalty | 2,000,000 | ||||
Amount of damages sought | 9,000,000 | ||||
Brazilian Tax Disputes - Jan 2002 through Dec 2003 | Sao Paulo State Revenue Authority | |||||
Commitments and Contingencies | |||||
Damages sought - principal | $ 1,500,000 | ||||
Damages sought - interest, penalties and fees | 4,900,000 | ||||
Loss Contingency, Reduced Penalty | 1,200,000 | ||||
Loss Contingency, Reduced Penalty, Including Interest | 10,000,000 | ||||
Amount of damages sought | $ 6,500,000 | ||||
Brazilian Labor Claims | |||||
Commitments and Contingencies | |||||
Loss contingency reserves | $ 7,000,000 | $ 7,100,000 | |||
Other | |||||
Commitments and Contingencies | |||||
Approximate number of defendants that includes the company named in legal actions | defendant | 90 | ||||
Number of pending claims | claim | 17,127 | 17,127 | |||
Number of claims dismissed to date by stipulation or summary judgment prior to trial | case | 28,189 | ||||
Other | Active or In Extremis docket | |||||
Commitments and Contingencies | |||||
Number of pending claims | claim | 36 | 36 | |||
Other | Minimum | |||||
Commitments and Contingencies | |||||
Amount of damages sought | $ 20,000,000 | ||||
Other | Maximum | |||||
Commitments and Contingencies | |||||
Amount of damages sought | $ 25,000,000 | ||||
Other | New York County as managed by the New York Supreme Court | |||||
Commitments and Contingencies | |||||
Number of pending claims | case | 16,586 | 16,586 | |||
Other | New York County as managed by the New York Supreme Court | Pending And Future Litigation, Deferred Or Inactive Docket | |||||
Commitments and Contingencies | |||||
Number of pending claims | claim | 16,550 | 16,550 | |||
Other | New York State Supreme Court, Counties Excluding New York County | |||||
Commitments and Contingencies | |||||
Number of pending claims | case | 119 | 119 | |||
Other | Courts Located In States Other Than New York | |||||
Commitments and Contingencies | |||||
Number of pending claims | case | 422 | 422 | |||
CSN [Member] | |||||
Commitments and Contingencies | |||||
Penalties per day | R$ | R$ 20000 |
Reconciliation of Basic and D_3
Reconciliation of Basic and Diluted Shares - Reconciliation of Basic and Diluted Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Income from continuing operations, net of tax | $ 21,029 | $ 18,260 |
Weighted-average shares outstanding - basic (in shares) | 79,907 | 80,650 |
Dilutive effect of stock-based compensation (in shares) | 1,746 | 2,894 |
Weighted-average shares outstanding - diluted (in shares) | 81,653 | 83,544 |
Earnings (loss) from continuing operations per common share, attributable to Harsco Corporation common stockholders: | ||
Basic (in dollars per share) | $ 0.26 | $ 0.23 |
Diluted (in dollars per share) | $ 0.26 | $ 0.22 |
Reconciliation of Basic and D_4
Reconciliation of Basic and Diluted Shares - Antidilutive Securities Excluded from Computation of Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock appreciation rights | ||
Antidilutive securities | ||
Number of securities not included in computation of diluted earnings per share (in shares) | 608 | 696 |
Performance share units | ||
Antidilutive securities | ||
Number of securities not included in computation of diluted earnings per share (in shares) | 233 | 0 |
Derivative Instruments, Hedgi_3
Derivative Instruments, Hedging Activities and Fair Value - Fair Value of Outstanding Derivative Contracts (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative contracts | ||
Asset derivatives | $ 8,531 | $ 5,018 |
Liability derivatives | 6,282 | 4,783 |
Foreign currency exchange forward contracts | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 7,795 | 3,559 |
Foreign currency exchange forward contracts | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 1,547 | 2,934 |
Interest rate swaps | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 736 | 1,331 |
Interest rate swaps | Other assets | ||
Derivative contracts | ||
Asset derivatives | 128 | |
Interest rate swaps | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 96 | |
Interest rate swaps | Other liabilities | ||
Derivative contracts | ||
Liability derivatives | 4,639 | 1,849 |
Fair Value of Derivatives Designated as Hedging Instruments | ||
Derivative contracts | ||
Asset derivatives | 3,011 | 4,429 |
Liability derivatives | 4,856 | 1,873 |
Fair Value of Derivatives Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 2,275 | 2,970 |
Fair Value of Derivatives Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 121 | 24 |
Fair Value of Derivatives Designated as Hedging Instruments | Interest rate swaps | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 736 | 1,331 |
Fair Value of Derivatives Designated as Hedging Instruments | Interest rate swaps | Other assets | ||
Derivative contracts | ||
Asset derivatives | 128 | |
Fair Value of Derivatives Designated as Hedging Instruments | Interest rate swaps | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 96 | |
Fair Value of Derivatives Designated as Hedging Instruments | Interest rate swaps | Other liabilities | ||
Derivative contracts | ||
Liability derivatives | 4,639 | 1,849 |
Fair Value of Derivatives Not Designated as Hedging Instruments | ||
Derivative contracts | ||
Asset derivatives | 5,520 | 589 |
Liability derivatives | 1,426 | 2,910 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 5,520 | 589 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 1,426 | 2,910 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 0 | 0 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Other assets | ||
Derivative contracts | ||
Asset derivatives | 0 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 0 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Other liabilities | ||
Derivative contracts | ||
Liability derivatives | $ 0 | $ 0 |
Derivative Instruments, Hedgi_4
Derivative Instruments, Hedging Activities and Fair Value - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2022 | Dec. 31, 2018 | |
Foreign Currency Derivatives | ||||
Liabilities | $ 1,402,289,000 | $ 1,319,491,000 | ||
Pre-tax net gains (losses) on certain loans designated as hedges of net investments in foreign subsidiaries | 4,800,000 | $ 9,500,000 | ||
Fair value of long-term debt | 657,400,000 | 592,000,000 | ||
Carrying value of long-term debt | 661,500,000 | 605,400,000 | ||
Subject to Master Netting Agreements [Member] | ||||
Foreign Currency Derivatives | ||||
Liabilities | 1,000,000 | 100,000 | ||
Foreign currency exchange forward contracts | ||||
Foreign Currency Derivatives | ||||
U.S. Dollar Equivalent | 444,300,000 | $ 423,900,000 | ||
Term Loan Facility, Fixed-Rate | Term Loan | ||||
Foreign Currency Derivatives | ||||
Principal amount | $ 300,000,000 | |||
LIBOR | Term Loan Facility, Fixed-Rate | Term Loan | ||||
Foreign Currency Derivatives | ||||
Variable rate basis spread | 2.12% | |||
LIBOR | Scenario, Forecast | Term Loan Facility, Fixed-Rate | Term Loan | ||||
Foreign Currency Derivatives | ||||
Variable rate basis spread | 3.12% |
Derivative Instruments, Hedgi_5
Derivative Instruments, Hedging Activities and Fair Value - Effect of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | |
Effect of derivative instruments | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative - Effective Portion | $ (4,073) | $ 3,457 | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income - Effective Portion | (19) | (1,461) | ||
Accumulated other comprehensive loss | (584,425) | $ (567,107) | ||
Foreign currency exchange forward contracts | ||||
Effect of derivative instruments | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative - Effective Portion | (712) | 240 | ||
Foreign currency exchange forward contracts | Cost of services and products sold | ||||
Effect of derivative instruments | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income - Effective Portion | (32) | (212) | ||
Derivatives Not Designated as Hedging Instruments | ||||
Amount of Gain (Loss) Recognized in Income on Derivative | 2,323 | (5,466) | ||
Interest rate swaps | ||||
Effect of derivative instruments | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative - Effective Portion | (3,309) | 3,310 | ||
Interest rate swaps | Interest Expense | ||||
Effect of derivative instruments | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative - Effective Portion | (301) | 0 | ||
Cross currency interest rate swaps | ||||
Effect of derivative instruments | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative - Effective Portion | (52) | (93) | ||
Cross currency interest rate swaps | Interest Expense | ||||
Effect of derivative instruments | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income - Effective Portion | $ 314 | 271 | ||
Amount of Gain (Loss) Recognized in Income on Derivative - Ineffective Portion and Amount Excluded from Effectiveness Testing | $ (271) | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Effect of derivative instruments | ||||
Accumulated other comprehensive loss | $ (1,520) |
Derivative Instruments, Hedgi_6
Derivative Instruments, Hedging Activities and Fair Value - Derivatives Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Product Revenues | $ 447,288 | $ 408,038 |
Interest Expense | (9,739) | (9,583) |
Product Revenues | Interest rate swaps | ||
Derivative [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | |
Product Revenues | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 32 | |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 212 | |
Amount excluded from effectiveness testing recognized in earnings | 78 | |
Amount excluded from effectiveness testing recognized in earnings | 0 | |
Product Revenues | Cross currency interest rate swaps | ||
Derivative [Line Items] | ||
Amount excluded from effectiveness testing recognized in earnings | 0 | |
Amount excluded from effectiveness testing recognized in earnings | 0 | |
Cost of Goods, Total [Member] | Interest rate swaps | ||
Derivative [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | |
Cost of Goods, Total [Member] | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | |
Amount excluded from effectiveness testing recognized in earnings | (19) | |
Cost of Goods, Total [Member] | Cross currency interest rate swaps | ||
Derivative [Line Items] | ||
Amount excluded from effectiveness testing recognized in earnings | 0 | |
Interest Expense | Interest rate swaps | ||
Derivative [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 301 | |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | |
Interest Expense | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 0 | |
Amount excluded from effectiveness testing recognized in earnings | 0 | |
Amount excluded from effectiveness testing recognized in earnings | 0 | |
Interest Expense | Cross currency interest rate swaps | ||
Derivative [Line Items] | ||
Amount excluded from effectiveness testing recognized in earnings | (314) | |
Amount excluded from effectiveness testing recognized in earnings | (271) | |
Product Revenues | ||
Derivative [Line Items] | ||
Product Revenues | 217,768 | 163,829 |
Cost of services and products sold | $ 157,004 | $ 119,678 |
Review of Operations by Segme_3
Review of Operations by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operations by segment | ||
Revenues | $ 447,288 | $ 408,038 |
Operating income from continuing operations | 38,246 | 36,541 |
Interest income | 534 | 498 |
Interest expense | (9,739) | (9,583) |
Defined benefit pension income (expense) | 1,337 | (839) |
Income from continuing operations before income taxes and equity income | 27,704 | 28,295 |
Depreciation and Amortization | 33,249 | 33,352 |
Capital Expenditures | 36,407 | 26,897 |
Operating Segments | ||
Operations by segment | ||
Operating income from continuing operations | 46,916 | 42,108 |
Corporate | ||
Operations by segment | ||
Revenues | 0 | 39 |
Operating income from continuing operations | (8,670) | (5,567) |
Depreciation and Amortization | 1,352 | 1,348 |
Capital Expenditures | 1,153 | 204 |
Harsco Metals & Minerals Segment | Operating Segments | ||
Operations by segment | ||
Revenues | 261,312 | 264,723 |
Operating income from continuing operations | 24,497 | 27,735 |
Depreciation and Amortization | 28,705 | 29,085 |
Capital Expenditures | 29,163 | 25,176 |
Harsco Industrial Segment | Operating Segments | ||
Operations by segment | ||
Revenues | 117,385 | 83,598 |
Operating income from continuing operations | 17,030 | 12,421 |
Depreciation and Amortization | 2,025 | 1,855 |
Capital Expenditures | 2,175 | 1,087 |
Harsco Rail Segment | Operating Segments | ||
Operations by segment | ||
Revenues | 68,591 | 59,678 |
Operating income from continuing operations | 5,389 | 1,952 |
Depreciation and Amortization | 1,167 | 1,064 |
Capital Expenditures | $ 3,916 | $ 430 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | Mar. 31, 2019USD ($) |
Harsco Metals & Minerals Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 43.6 |
Harsco Metals & Minerals Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period of expected timing of satisfaction | 1 year |
Harsco Metals & Minerals Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 35.4 |
Period of expected timing of satisfaction | 1 year |
Harsco Metals & Minerals Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 24.9 |
Period of expected timing of satisfaction | 1 year |
Harsco Metals & Minerals Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 22.9 |
Period of expected timing of satisfaction | 1 year |
Harsco Metals & Minerals Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period of expected timing of satisfaction | 1 year |
Harsco Metals & Minerals Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 136.7 |
Harsco Rail Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 94.3 |
Harsco Rail Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period of expected timing of satisfaction | 1 year |
Harsco Rail Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 64.5 |
Period of expected timing of satisfaction | 1 year |
Harsco Rail Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 36.7 |
Period of expected timing of satisfaction | 1 year |
Harsco Rail Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 14.2 |
Period of expected timing of satisfaction | 1 year |
Harsco Rail Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period of expected timing of satisfaction | 1 year |
Harsco Rail Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 209.8 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues by Primary Geographical Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 447,288 | $ 408,038 |
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 | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 261,312 | 264,723 |
Railway track maintenance services and equipment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 68,591 | 59,678 |
Air-cooled heat exchangers | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 76,203 | 44,267 |
Industrial grating and fencing products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 33,376 | 30,097 |
Heat transfer products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 7,806 | 9,234 |
General Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 39 | |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 235,814 | 190,367 |
Western Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 108,234 | 111,641 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 42,868 | 47,031 |
Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 41,759 | 39,941 |
Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 13,915 | 11,553 |
Eastern Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4,698 | 7,505 |
Harsco Metals & Minerals Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 261,312 | 264,723 |
Harsco Metals & Minerals Segment | 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 | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 261,312 | 264,723 |
Harsco Metals & Minerals Segment | Railway track maintenance services and equipment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Metals & Minerals Segment | Air-cooled heat exchangers | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Metals & Minerals Segment | Industrial grating and fencing products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Metals & Minerals Segment | Heat transfer products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Metals & Minerals Segment | General Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | |
Harsco Metals & Minerals Segment | North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 73,349 | 71,065 |
Harsco Metals & Minerals Segment | Western Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 98,221 | 96,921 |
Harsco Metals & Minerals Segment | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 36,991 | 41,458 |
Harsco Metals & Minerals Segment | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 34,138 | 36,221 |
Harsco Metals & Minerals Segment | Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 13,915 | 11,553 |
Harsco Metals & Minerals Segment | Eastern Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4,698 | 7,505 |
Harsco Industrial Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 117,385 | 83,598 |
Harsco Industrial Segment | 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 | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Industrial Segment | Railway track maintenance services and equipment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Industrial Segment | Air-cooled heat exchangers | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 76,203 | 44,267 |
Harsco Industrial Segment | Industrial grating and fencing products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 33,376 | 30,097 |
Harsco Industrial Segment | Heat transfer products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 7,806 | 9,234 |
Harsco Industrial Segment | General Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | |
Harsco Industrial Segment | North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 112,099 | 78,858 |
Harsco Industrial Segment | Western Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Industrial Segment | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 5,286 | 4,740 |
Harsco Industrial Segment | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Industrial Segment | Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Industrial Segment | Eastern Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Rail Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 68,591 | 59,678 |
Harsco Rail Segment | 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 | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Rail Segment | Railway track maintenance services and equipment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 68,591 | 59,678 |
Harsco Rail Segment | Air-cooled heat exchangers | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Rail Segment | Industrial grating and fencing products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Rail Segment | Heat transfer products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Rail Segment | General Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | |
Harsco Rail Segment | North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 50,366 | 40,405 |
Harsco Rail Segment | Western Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 10,013 | 14,720 |
Harsco Rail Segment | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 591 | 833 |
Harsco Rail Segment | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 7,621 | 3,720 |
Harsco Rail Segment | Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Harsco Rail Segment | Eastern Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 39 |
Corporate | 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 | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Railway track maintenance services and equipment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Air-cooled heat exchangers | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Industrial grating and fencing products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Heat transfer products | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | General Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 39 | |
Corporate | North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 39 |
Corporate | Western Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Eastern Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 0 | $ 0 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Advances on Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Contract assets: | ||
Current portion of contract assets | $ 17,478 | $ 24,254 |
Total contract assets | 17,500 | 24,300 |
Advances on contracts: | ||
Current portion of advances on contracts | 37,014 | 31,317 |
Advances on contracts | 27,478 | 37,675 |
Total advances on contracts | 64,500 | $ 69,000 |
Contract with Customer, Liability, Revenue Recognized | $ 21,500 |
Other (Income) Expenses, Net (D
Other (Income) Expenses, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | ||
Employee termination benefit costs | $ 2,598 | $ 1,443 |
Net gains | (2,271) | 0 |
Other costs to exit activities | 1,165 | 364 |
Impaired asset write-downs | 214 | 9 |
Contingent consideration adjustments | 369 | 0 |
Other | (199) | 6 |
Other expenses, net | $ 1,876 | $ 1,822 |
Components of Accumulated Oth_3
Components of Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Income Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | |
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balances | $ 313,376 | $ 215,165 | ||
Accumulated other comprehensive loss | 0 | $ (2,387) | ||
Other comprehensive income (loss) before reclassifications | 2,083 | 1,310 | ||
Amounts reclassified from accumulated other comprehensive loss | 2,448 | 4,853 | ||
Total other comprehensive income | 4,531 | 6,163 | ||
Other comprehensive income attributable to noncontrolling interests | (420) | (1,278) | ||
Other comprehensive income (loss) attributable to Harsco Corporation | 4,111 | 4,885 | ||
Balances | 335,272 | 246,345 | ||
Cumulative Foreign Exchange Translation Adjustments | ||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balances | (159,810) | (111,567) | ||
Accumulated other comprehensive loss | $ 0 | |||
Other comprehensive income (loss) before reclassifications | 11,725 | 12,501 | ||
Amounts reclassified from accumulated other comprehensive loss | (2,271) | 0 | ||
Total other comprehensive income | 9,454 | 12,501 | ||
Other comprehensive income attributable to noncontrolling interests | (420) | (1,278) | ||
Other comprehensive income (loss) attributable to Harsco Corporation | 9,034 | 11,223 | ||
Balances | (150,776) | (100,344) | ||
Effective Portion of Deriviatives Designated as Hedging Instruments | ||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balances | 1,389 | 808 | ||
Accumulated other comprehensive loss | 0 | |||
Other comprehensive income (loss) before reclassifications | (3,084) | 2,768 | ||
Amounts reclassified from accumulated other comprehensive loss | (63) | (91) | ||
Total other comprehensive income | (3,147) | 2,677 | ||
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | (3,147) | 2,677 | ||
Balances | (1,758) | 1,965 | ||
Cumulative Unrecognized Actuarial Losses on Pension Obligations | ||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balances | (408,655) | (435,840) | ||
Accumulated other comprehensive loss | (21,429) | |||
Other comprehensive income (loss) before reclassifications | (6,573) | (13,945) | ||
Amounts reclassified from accumulated other comprehensive loss | 4,782 | 4,944 | ||
Total other comprehensive income | (1,791) | (9,001) | ||
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | (1,791) | (9,001) | ||
Balances | (431,875) | (444,841) | ||
Unrealized Loss on Marketable Securities | ||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balances | (31) | 17 | ||
Accumulated other comprehensive loss | 0 | |||
Other comprehensive income (loss) before reclassifications | 15 | (14) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Total other comprehensive income | 15 | (14) | ||
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Other comprehensive income (loss) attributable to Harsco Corporation | 15 | (14) | ||
Balances | (16) | 3 | ||
Accumulated Other Comprehensive Loss | ||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balances | (567,107) | (546,582) | ||
Accumulated other comprehensive loss | 21,429 | $ (21,429) | (1,520) | |
Total other comprehensive income | 4,111 | 4,885 | ||
Balances | $ (584,425) | (543,217) | ||
Accounting Standards Update 2014-09 | Accumulated Other Comprehensive Loss | ||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Accumulated other comprehensive loss | $ (1,520) | |||
Accounting Standards Update 2014-09 | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||
Accumulated other comprehensive loss | $ (1,520) |
Components of Accumulated Oth_4
Components of Accumulated Other Comprehensive Loss - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | $ (2,271) | $ 0 |
Product revenues | 447,288 | 408,038 |
Interest expense | 9,739 | 9,583 |
Income from continuing operations before income taxes | 27,704 | 28,295 |
Income tax expense (benefit) | 4,855 | 8,266 |
Net income | 22,537 | 19,577 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Cumulative Unrecognized Actuarial Losses on Pension Obligations | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Income from continuing operations before income taxes | 5,124 | 5,269 |
Income tax expense (benefit) | (342) | (325) |
Net income | 4,782 | 4,944 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Effective Portion of Deriviatives Designated as Hedging Instruments | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Income from continuing operations before income taxes | (19) | 59 |
Income tax expense (benefit) | (44) | (150) |
Net income | (63) | (91) |
Amount Reclassified from Accumulated Other Comprehensive Loss | Effective Portion of Deriviatives Designated as Hedging Instruments | Foreign currency exchange forward contracts | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Product revenues | (32) | (212) |
Amount Reclassified from Accumulated Other Comprehensive Loss | Effective Portion of Deriviatives Designated as Hedging Instruments | Cross currency interest rate swaps | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | 314 | 271 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Effective Portion of Deriviatives Designated as Hedging Instruments | Interest rate swaps | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | (301) | 0 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Actuarial losses | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Defined benefit pension income (expense) | 5,058 | 5,142 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Prior service costs (benefits) | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Defined benefit pension income (expense) | 66 | (39) |
Amount Reclassified from Accumulated Other Comprehensive Loss | Settlement/curtailment losses | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Defined benefit pension income (expense) | $ 0 | $ 166 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Scenario, Forecast $ in Millions | 2 Months Ended |
Jun. 30, 2019USD ($) | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Harsco Industrial Air-X-Changers Business | |
Subsequent Event [Line Items] | |
Selling price | $ 592 |
Clean Earth | |
Subsequent Event [Line Items] | |
Acquisition price | $ 625 |
Uncategorized Items - hsc-03312
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 21,429,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 3,907,000 |