Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-03970 | |
Entity Registrant Name | HARSCO CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-1483991 | |
Entity Address, Address Line One | 350 Poplar Church Road, | |
Entity Address, City or Town | Camp Hill, | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 17011 | |
City Area Code | 717 | |
Local Phone Number | 763-7064 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common stock, par value $1.25 per share | |
Trading Symbol | HSC | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 78,884,749 | |
Entity Central Index Key | 0000045876 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 66,488 | $ 57,259 |
Restricted cash | 2,300 | 2,473 |
Trade accounts receivable, net | 320,710 | 309,990 |
Other receivables | 18,685 | 21,265 |
Inventories | 167,890 | 156,991 |
Current portion of contract assets | 50,499 | 31,166 |
Current portion of assets held-for-sale | 540 | 22,093 |
Other current assets | 53,668 | 51,575 |
Total current assets | 680,780 | 652,812 |
Property, plant and equipment, net | 533,349 | 561,786 |
Right-of-use assets, net | 50,491 | 52,065 |
Goodwill | 727,882 | 738,369 |
Intangible assets, net | 294,720 | 299,082 |
Deferred income tax assets | 9,476 | 14,288 |
Assets held-for-sale | 0 | 32,029 |
Other assets | 50,472 | 17,036 |
Total assets | 2,347,170 | 2,367,467 |
Current liabilities: | ||
Short-term borrowings | 4,820 | 3,647 |
Current maturities of long-term debt | 2,758 | 2,666 |
Accounts payable | 181,760 | 176,755 |
Accrued compensation | 33,492 | 37,992 |
Income taxes payable | 15,956 | 18,692 |
Insurance liabilities | 9,844 | 10,140 |
Current portion of advances on contracts | 47,822 | 53,906 |
Current portion of operating lease liabilities | 12,421 | 12,544 |
Current portion of liabilities of assets held-for-sale | 0 | 11,344 |
Other current liabilities | 141,877 | 137,208 |
Total current liabilities | 450,750 | 464,894 |
Long-term debt | 789,619 | 775,498 |
Insurance liabilities | 17,019 | 18,515 |
Retirement plan liabilities | 164,499 | 189,954 |
Advances on contracts | 53,775 | 6,408 |
Operating lease liabilities | 35,561 | 36,974 |
Liabilities of assets held-for-sale | 0 | 12,152 |
Other liabilities | 77,077 | 73,413 |
Total liabilities | 1,588,300 | 1,577,808 |
COMMITMENTS AND CONTINGENCIES | ||
HARSCO CORPORATION STOCKHOLDERS' EQUITY | ||
Preferred stock | 0 | 0 |
Common stock | 144,219 | 143,400 |
Additional paid-in capital | 201,856 | 200,595 |
Accumulated other comprehensive loss | (616,476) | (587,622) |
Retained earnings | 1,824,241 | 1,824,100 |
Treasury stock | (842,987) | (838,893) |
Total Harsco Corporation stockholders' equity | 710,853 | 741,580 |
Noncontrolling interests | 48,017 | 48,079 |
Total equity | 758,870 | 789,659 |
Total liabilities and equity | $ 2,347,170 | $ 2,367,467 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenues from continuing operations: | |||
Total revenues | $ 398,841 | $ 329,902 | |
Costs and expenses from continuing operations: | |||
Selling, general and administrative costs | 72,499 | 56,406 | |
Research and development expenses | 1,260 | 749 | |
Other expenses, net | 5,733 | 1,743 | |
Total costs and expenses | 395,960 | 310,078 | |
Operating income from continuing operations | 2,881 | 19,824 | |
Interest income | 193 | 533 | |
Interest expense | (12,649) | (5,507) | |
Unused debt commitment and amendment fees | (488) | 0 | |
Defined benefit pension income (expense) | (1,589) | 1,338 | |
Income (loss) from continuing operations before income taxes and equity income | (8,474) | 13,512 | |
Income tax benefit (expense) | 682 | (1,219) | |
Equity income of unconsolidated entities, net | 96 | 21 | |
Income (loss) from continuing operations | (7,696) | 12,314 | |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 18,462 | 0 | |
Discontinued operations: | |||
Income (loss) from discontinued businesses | (225) | 13,750 | |
Income tax expense related to discontinued businesses | (9,314) | (3,527) | |
Income from discontinued operations | 8,923 | 10,223 | |
Net income | 1,227 | 22,537 | |
Less: Net income attributable to noncontrolling interests | (1,086) | (1,840) | |
Net income attributable to Harsco Corporation | 141 | 20,697 | |
Amounts attributable to Harsco Corporation common stockholders: | |||
Income (loss) from continuing operations, net of tax | (8,782) | 10,474 | |
Income from discontinued operations | 8,923 | 10,223 | |
Net income attributable to Harsco Corporation | $ 141 | $ 20,697 | |
Weighted-average shares of common stock outstanding (in shares) | 78,761 | 79,907 | |
Basic earnings (loss) per common share attributable to Harsco Corporation common stockholders: | |||
Continuing operations (in dollars per share) | $ (0.11) | $ 0.13 | |
Discontinued operations (in dollars per share) | 0.11 | 0.13 | |
Basic earnings (loss) per share attributable to Harsco Corporation common stockholders (in dollars per share) | $ 0 | $ 0.26 | [1] |
Diluted weighted-average shares of common stock outstanding (in shares) | 78,761 | 81,653 | |
Diluted earnings (loss) per common share attributable to Harsco Corporation common stockholders: | |||
Continuing operations (in dollars per share) | $ (0.11) | $ 0.13 | |
Discontinued operations (in dollars per share) | 0.11 | 0.13 | |
Diluted earnings (loss) per share attributable to Harsco Corporation common stockholders (in dollars per share) | $ 0 | $ 0.25 | [1] |
Products And Services, Service Revenue [Member] | |||
Revenues from continuing operations: | |||
Total revenues | $ 291,339 | $ 229,520 | |
Costs and expenses from continuing operations: | |||
Cost of services sold | 236,319 | 181,871 | |
Product Revenues | |||
Revenues from continuing operations: | |||
Total revenues | 107,502 | 100,382 | |
Costs and expenses from continuing operations: | |||
Cost of services sold | $ 80,149 | $ 69,309 | |
[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, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,227 | $ 22,537 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, net of deferred income taxes of $(4,082) and $1,131 for the three months ended March 31, 2020 and 2019, respectively | (58,566) | 9,454 |
Net gain (loss) on cash flow hedging instruments, net of deferred income taxes of $517 and $945 for the three months ended March 31, 2020 and 2019, respectively | (1,687) | (3,147) |
Pension liability adjustments, net of deferred income taxes of $(1,710) and $(342) for the three months ended March 31, 2020 and 2019, respectively | 30,269 | (1,791) |
Unrealized gain (loss) on marketable securities, net of deferred income taxes of $8 and $(5) for the three months ended March 31, 2020 and 2019, respectively | (18) | 15 |
Total other comprehensive income (loss) | (30,002) | 4,531 |
Total comprehensive income (loss) | (28,775) | 27,068 |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 61 | (2,260) |
Comprehensive income (loss) attributable to Harsco Corporation | $ (28,714) | $ 24,808 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, deferred income taxes | $ (4,082) | $ 1,131 |
Net gain (loss) on cash flow hedging instruments, deferred income taxes | 517 | 945 |
Pension liability adjustments, deferred income taxes | (1,710) | (342) |
Unrealized gain (loss) on marketable securities, deferred income taxes | $ 8 | $ (5) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 1,227 | $ 22,537 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||
Depreciation | 29,933 | 30,204 |
Amortization | 6,557 | 3,045 |
Deferred income tax expense | 4,412 | 595 |
Equity income of unconsolidated entities, net | (96) | (21) |
Gain on sale from discontinued business | (18,462) | 0 |
Other, net | (2,007) | (279) |
Changes in assets and liabilities: | ||
Accounts receivable | (22,050) | (3,270) |
Inventories | (16,412) | (14,448) |
Contract assets | (20,311) | 6,770 |
Increase (Decrease) In Right-Of_Use Assets | 3,429 | 3,895 |
Accounts payable | 12,308 | 3,099 |
Accrued interest payable | (9,891) | 89 |
Accrued compensation | (2,752) | (19,924) |
Advances on contracts | 40,464 | (3,406) |
Operating lease liabilities | (3,358) | (3,913) |
Retirement plan liabilities, net | (15,534) | (9,403) |
Increase (Decrease) in Income Taxes Payable | 3,843 | 0 |
Other assets and liabilities | (2,836) | (732) |
Net cash provided (used) by operating activities | (11,536) | 14,838 |
Gain (loss) on Extinguishment of debt, Cash Flow | 0 | |
Gain on disposition of business | (18,462) | |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (27,894) | (36,407) |
Purchases of businesses, net of cash acquired | (4,157) | 680 |
Proceeds from Divestiture of Businesses | 37,219 | 0 |
Proceeds from Sale of Productive Assets | 2,185 | 1,177 |
Expenditures for intangible assets | (58) | 0 |
Net proceeds (payments) from settlement of foreign currency forward exchange contracts | 11,327 | (4,091) |
Net cash provided (used) by investing activities | 18,622 | (38,641) |
Cash flows from financing activities: | ||
Short-term borrowings, net | 3,697 | (3,578) |
Current maturities and long-term debt: | ||
Additions | 52,875 | 56,998 |
Reductions | (38,709) | (1,700) |
Sale of noncontrolling interests | 0 | 876 |
Stock-based compensation - Employee taxes paid | (3,437) | (8,237) |
Deferred financing costs | 1,632 | 0 |
Net cash provided by financing activities | 12,794 | 44,359 |
Effect of exchange rate changes on cash and cash equivalents, including restricted cash | (10,824) | (17) |
Net increase in cash and cash equivalents, including restricted cash | 9,056 | 20,539 |
Cash and cash equivalents, including restricted cash, at beginning of period | 59,732 | 67,146 |
Cash and cash equivalents, including restricted cash, at end of period | 68,788 | 87,685 |
Change in accrual for purchases of property, plant and equipment included in accounts payable | $ (281) | $ 6,473 |
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, 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 $(5,267) and $1,729 for the three months ended March 31, 2020 and 2019, respectively | 4,531 | 4,111 | 420 | ||||
Stock appreciation rights exercised, net | (8) | 2 | (8) | (2) | |||
Vesting of restricted stock units and other stock grants, net | (1,456) | 198 | (1,456) | (198) | |||
Vesting of performance share units, net | (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 |
Balances at Dec. 31, 2019 | 789,659 | 143,400 | (838,893) | 200,595 | 1,824,100 | (587,622) | 48,079 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 1,227 | 141 | 1,086 | ||||
Total other comprehensive income (loss), net of deferred income taxes of $(5,267) and $1,729 for the three months ended March 31, 2020 and 2019, respectively | (30,002) | (28,854) | (1,148) | ||||
Vesting of restricted stock units and other stock grants, net | (889) | 230 | (889) | (230) | |||
Vesting of performance share units, net | (3,205) | 589 | (3,205) | (589) | |||
Amortization of unearned portion of stock-based compensation, net of forfeitures | 2,080 | 2,080 | |||||
Balances at Mar. 31, 2020 | $ 758,870 | $ 144,219 | $ (842,987) | $ 201,856 | $ 1,824,241 | $ (616,476) | $ 48,017 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Total other comprehensive income, deferred income taxes | $ (5,267) | $ 1,729 |
Vesting of restricted stock units and other stock grants (in shares) | 104,840 | 94,229 |
Stock appreciation rights exercised (in shares) | 0 | 927 |
Vesting of performance share units (in shares) | 265,151 | 529,213 |
Treasury Stock, Shares, Acquired | 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 Condensed Consolidated Balance Sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2019 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, 2019 . 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. Discontinued Operations In January 2020 the Company sold Harsco Industrial IKG ("IKG") and together with the 2019 sales of Harsco Industrial Air-X-Changers ("AXC") and Harsco Industrial Patterson-Kelly ("PK"), this completes the divestiture of the former Harsco Industrial Segment originally announced in May 2019. These disposals represent a strategic shift and accelerated the transformation of the Company's portfolio of businesses into a leading provider of environmental solutions and services. As a result of these disposals (i) the carrying value of the remaining assets and liabilities of the Harsco Industrial Segment have been classified as Assets held-for-sale and Liabilities of assets held-for-sale on the Company's Condensed Consolidated Balance Sheets; (ii) the operating results of the Harsco Industrial Segment, costs directly related to the disposals, an allocation of interest expense associated with mandatory debt repayments required as a result of the disposals and the write-off of deferred financing costs resulting from the mandatory repayment have been reflected in the Company's Condensed Consolidated Statements of Operations as discontinued operations for all periods presented; and (iii) all disclosures have been updated to reflect these changes. See Note 3, Acquisitions and Dispositions, for additional information. Reclassifications Certain reclassifications have been made to prior year amounts to conform with current year classifications. |
Recently Adopted and Recently I
Recently Adopted and Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
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 2020: On January 1, 2020 the Company adopted changes issued by the Financial Accounting Standards Boards ("FASB") which updated 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. Provisions for receivables will be recorded as Allowance for expected credit losses, replacing the previously utilized Allowance for doubtful accounts. In addition, these changes required certain expanded disclosures. Other than changes in disclosure, these changes did not have a material impact on the Company's condensed consolidated financial statements as the calculation of expected credit losses did not yield results that were materially different from the methodology previously utilized by the Company. See Note 4, Accounts Receivable and Note Receivable for additional information. On January 1, 2020 the Company adopted changes issued by FASB that removed 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. These changes did not have a material impact on the Company's condensed consolidated financial statements. On January 1, 2020 the Company adopted changes issued by FASB which modified 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. Other than required expanded disclosures, the adoption of these changes did not have a material impact on the Company's condensed consolidated financial statements. The following accounting standards have been issued and become effective for the Company at a future date: In December 2019 the FASB issued changes which are intended to reduce complexity and simplify the accounting for income taxes in accordance with U.S. GAAP by removing certain exceptions related to investments, intraperiod allocations and interim calculations and clarifying existing guidance to improve consistent application. The changes become effective for the Company on January 1, 2021 with early adoption permitted. Management is currently evaluating the impact of these changes on its condensed consolidated financial statements. In March 2020 the FASB issued changes that provides companies with optional guidance to ease the potential accounting burden associated with transitioning from reference rates that are expected to be discontinued. In response to the concerns about risks of interbank offered rates (IBORs) and, particularly, the risk of cessation of the London Interbank Offered Rate ("LIBOR"), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The changes provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The changes can be adopted no later than December 31, 2022 with early adoption permitted. Management does not believe these changes will have a material impact on its condensed consolidated financial statements. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Clean Earth On June 28, 2019 the Company acquired 100% of the outstanding stock of CEHI Acquisition Corporation and Subsidiaries ("Clean Earth"), one of the largest U.S. providers of specialty waste processing and beneficial reuse solutions for hazardous wastes, contaminated materials and dredged volumes, for an enterprise valuation of approximately $625 million on a cash free, debt free basis, subject to normal working capital adjustments. The Company transferred approximately $628 million of cash consideration and agreed to reimburse the sellers for any usage of assumed net operating losses in a post-closing period for up to five years, the present value of which is estimated at approximately $8 million . The fair value recorded for the assets acquired and liabilities assumed for Clean Earth is as follows: Preliminary Valuation (In millions) June 28, 2019 Measurement Period Adjustments (a) March 31 Cash and cash equivalents (b) $ 42.8 $ (39.2 ) $ 3.6 Trade accounts receivable, net 63.7 (1.2 ) 62.5 Other receivables 0.8 1.3 2.1 Other current assets 8.7 (1.4 ) 7.3 Property, plant and equipment 75.6 1.6 77.2 Right-of-use assets 14.4 11.4 25.8 Goodwill 313.8 16.3 330.1 Intangible assets 261.1 (18.9 ) 242.2 Other assets 4.0 (2.8 ) 1.2 Accounts payable (23.0 ) (0.1 ) (23.1 ) Acquisition consideration payable (b) (39.2 ) 39.2 — Other current liabilities (18.0 ) (1.7 ) (19.7 ) Net deferred taxes liabilities (51.2 ) 5.8 (45.4 ) Operating lease liabilities (11.1 ) (8.4 ) (19.5 ) Other liabilities (6.5 ) (2.1 ) (8.6 ) Total identifiable net assets of Clean Earth $ 635.9 $ (0.2 ) $ 635.7 (a) The measurement period adjustments did not have a material impact on the Company's previously reported operating results. (b) Acquisition consideration payable represents a portion of the cash consideration not paid out until July 2019. The goodwill is attributable to strategic benefits, including enhanced operational and financial scale, as well as product and market diversification that the Company expects to realize. The Company expects $16.3 million of goodwill to be deductible for income tax purposes through 2033. The following table details the preliminary valuation of identifiable intangible assets and amortization periods for Clean Earth: Preliminary Valuation (Dollars in millions) Weighted-Average Amortization Period Preliminary Valuation June 28, 2019 Measurement Period Adjustments (c) March 31 Permits 18 years $ 176.1 $ (6.0 ) $ 170.1 Customer relationships 8 years 33.4 (12.9 ) 20.5 Air rights Usage based (d) 25.6 — 25.6 Trade names 12 years 26.0 — 26.0 Total identifiable intangible assets of Clean Earth $ 261.1 $ (18.9 ) $ 242.2 (c) The measurement period adjustments did not have a material impact on the Company's previously reported operating results. (d) The Company estimates that based on current usage that the expected useful life would be 27 years. The Company valued the identifiable intangible assets using an income-based approach that utilized either the multi-period excess earnings method or the relief from royalty method. The purchase price allocation for Clean Earth is not final and the fair value of intangible assets and goodwill may vary from those reflected in the Company's condensed consolidated financial statements at March 31, 2020 . The three months ended March 31, 2020 and 2019 include Clean Earth direct acquisition costs of $0.1 million and $0.6 million , respectively, which are included in Selling, general and administrative expenses in the Company’s Condensed Consolidated Statements of Operations. The pro forma information below gives effect to the Clean Earth acquisition as if it had been completed on January 1, 2018. The pro forma information is not necessarily indicative of the Company’s results of operations had the acquisition been completed on the above date, nor is it necessarily indicative of future results. The pro forma information does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisition and does not reflect the additional revenue opportunities following the acquisition. The pro forma information below includes adjustments to reflect additional depreciation and amortization expense based on the estimated fair value and useful lives of intangible assets and fixed assets acquired; includes additional interest expense of approximately $9.0 million three months ended March 31, 2019 on the acquisition related borrowings used to finance the Clean Earth acquisition and excludes certain directly attributable transaction costs and historic Clean Earth interest expense. These pro forma adjustments are subject to change as additional analysis is performed. The values assigned to the assets acquired and liabilities assumed are based on preliminary valuations and are subject to change as the Company obtains additional information during the measurement period. Three Months Ended March 31 (In millions) 2019 Pro forma revenues $ 393.5 Pro forma net income (including discontinued operations) 15.6 Harsco Industrial Segment In January 2020 the Company sold IKG for $85 million , including a note receivable with a face value of $40.0 million (initial fair value $34.3 million ), subject to post-closing adjustments, and recognized a gain on the sale of $18.5 million pre-tax (or approximately $9 million after-tax). Together with the 2019 sales of AXC and PK, this completes the divestiture of the former Harsco Industrial Segment originally announced in May 2019. These disposals represent a strategic shift and accelerated the transformation of the Company's portfolio of businesses into a leading provider of environmental solutions and services. See Note 4, Accounts Receivable and Note Receivable, for additional information related to the note receivable. The Harsco Industrial Segment has historically been a separate reportable segment with primary operations in North America and Latin America. In accordance with U.S. GAAP, the results of the former Harsco Industrial Segment are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for the three months ended March 31, 2020 and 2019 . Certain key selected financial information included in net income from discontinued operations for the former Harsco Industrial Segment is as follows: Three Months Ended March 31 (In millions) 2020 2019 Amounts directly attributable to the former Harsco Industrial Segment: Total revenues $ 10,203 $ 117,386 Cost of products sold 8,082 87,695 Income from discontinued business 218 14,192 Additional amounts allocated to the former Harsco Industrial Segment: Selling, general and administrative expenses (e) $ 1,266 $ — Interest expense (f) — 4,232 (e) The Company has allocated directly attributable transaction costs to discontinued operations. (f) The Company has allocated interest expense, including a portion of the amount reclassified into income for the Company's interest rate swaps and amortization of deferred financing costs resulting from the AXC disposal, as part of discontinued operations. The Company has retained corporate overhead expenses previously allocated to the Harsco Industrial Segment of $1.4 million for the three months ended March 31, 2019 , as part of Selling, general and administrative expenses, on the Company's Condensed Consolidated Statements of Operations. The following is selected financial information included on the Company's Condensed Consolidated Statements of Cash Flows attributable to the former Harsco Industrial Segment: Three Months Ended March 31 (In millions) 2020 2019 Non-cash operating items Depreciation and amortization $ — $ 2,025 Cash flows from investing activities Purchases of property, plant and equipment 106 2,175 |
Accounts Receivable (Notes)
Accounts Receivable (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Accounts and Nontrade Receivable [Text Block] | Accounts Receivable and Note Receivable Accounts receivable are stated at net realizable value which represents the face value of the receivable less an allowance for expected credit losses. The allowance for expected credit losses is maintained for expected lifetime losses resulting from the inability or unwillingness of customers to make required payments. The Company’s expected credit loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. When required, the Company adjusts the loss-rate methodology to account for current conditions and reasonable and supportable expectations of future economic and market conditions. The Company generally assesses future economic conditions for a period which corresponds with the contractual life of its accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Prior to the adoption of the new methodology, the Company established an allowance for doubtful accounts based upon a specific-identification method as well as historical collection experience, as appropriate. Accounts receivable consist of the following: (In thousands) March 31 December 31 Trade accounts receivable $ 333,725 $ 323,502 Less: Allowance for expected credit losses and doubtful accounts (13,015 ) (13,512 ) Trade accounts receivable, net $ 320,710 $ 309,990 Other receivables (a) $ 18,685 $ 21,265 (a) Other receivables include employee receivables, insurance receivable, tax claims and other miscellaneous items not included in Trade accounts receivable, net. The change in the provision for expected credit losses and doubtful accounts related to trade accounts receivable was as follows: Three Months Ended March 31 (In thousands) 2020 2019 Increase (decrease) in provision for expected credit losses and doubtful accounts related to trade accounts receivable $ 219 $ (10 ) At March 31, 2020 approximately $3.7 million of the Company's accounts receivable balance was past due by twelve months or more, primarily in the Clean Earth Segment, of which the majority of the balance was represented by a single customer from whom payment is expected within the next twelve months, while the rest were either fully or nearly fully reserved, although collection is still ultimately expected. In January 2020 the Company sold IKG for $85 million including cash and a note receivable, subject to post-closing adjustments. The note receivable from the buyer has a face value of $40 million bearing interest at 2.50% , that is paid in kind and matures on January 31, 2027. Any unpaid principal, along with any accrued but unpaid interest is payable at maturity. Prepayment is required in case of a change in control or a percentage of excess cash flow, as defined in the note receivable agreement. Because there are no scheduled payments under the terms of the note receivable, the balance is not classified as current as of March 31, 2020 and is included in the caption Other assets on the Condensed Consolidated Balance Sheet. The initial fair value of the note receivable was $34.3 million which was calculated using an average of various discounted cash flow scenarios based on anticipated timing of repayments (Level 3) and was a non-cash transaction. The note receivable is subsequently measured as amortized costs. Key inputs into the valuation model include: projected timing and amount of cash flows, pro forma debt rating, option-adjusted spread and U.S. Treasury spot rate. At March 31, 2020 the amortized cost of the note receivable was $34.6 million , compared with a fair value of $31.0 million . (In thousands) March 31 December 31 Note receivable $ 34,569 $ — |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: (In thousands) March 31 December 31 Finished goods $ 13,138 $ 14,550 Work-in-process 10,795 13,088 Raw materials and purchased parts 118,637 104,488 Stores and supplies 25,320 24,865 Total inventories $ 167,890 $ 156,991 During 2016 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 . The Company recorded an additional forward loss provision of $1.8 million during 2018. At March 31, 2020 the entire remaining estimated forward loss provision of $6.4 million is included as Other current liabilities on the Company's 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. The Company recognized $10.1 million and $4.7 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, 2020 and 2019 , respectively. For the three months ended March 31, 2020 and 2019 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 50% complete on the second contract with SBB as of March 31, 2020 . |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
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 $ 29,811 $ 30,409 Land improvements 17,822 19,155 Buildings and improvements 180,907 182,795 Machinery and equipment 1,418,493 1,518,652 Uncompleted construction 57,327 55,592 Gross property, plant and equipment 1,704,360 1,806,603 Less: Accumulated depreciation (1,171,011 ) (1,244,817 ) Property, plant and equipment, net $ 533,349 $ 561,786 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense were as follows: Three Months Ended (In thousands) March 31 March 31 Finance leases: Amortization expense $ 371 $ 310 Interest on lease liabilities 52 4 Operating leases 4,284 3,693 Short-term leases 6,703 4,571 Variable lease expense 408 219 Sublease income (50 ) (49 ) Total lease expense from continuing operations $ 11,768 $ 8,748 Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) March 31 March 31 Cash paid for amounts included in the measurement of lease liabilities: Cash flows from operating activities - Operating leases $ 3,789 $ 3,552 Cash flows from financing activities - Finance leases 324 363 Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) $ 2,217 $ 34,750 Finance leases 1,234 373 (a) Cash flows for Three Months Ended March 31, 2019 include ROU assets of approximately $34 million that were recorded upon adoption at January 1, 2019. Supplemental balance sheet information related to leases was as follows: (In thousands) March 31 December 31, 2019 Operating Leases: Operating lease right-of-use assets $ 50,491 $ 52,065 Current portion of operating lease liabilities 12,421 $ 12,544 Operating lease liabilities 35,561 36,974 Finance Leases: Property, plant and equipment, net $ 4,291 $ 3,519 Current maturities of long-term debt 1,346 $ 1,237 Long-term debt 2,984 2,218 Supplemental additional information related to leases is as follows: March 31 December 31 Other information: Weighted average remaining lease term - Operating leases (in years) 11.81 11.57 Weighted average remaining lease term - Finance leases (in years) 3.89 4.01 Weighted average discount rate - Operating leases 6.3 % 6.3 % Weighted average discount rate - Finance leases 4.3 % 4.2 % Maturities of lease liabilities were as follows: (In thousand) Operating Leases Finance Leases Year Ending December 31 st : 2020 (excluding the three months ended March 31, 2020) $ 11,458 $ 1,069 2021 11,527 1,198 2022 7,615 941 2023 5,369 748 2024 3,210 587 After 2024 32,018 43 Total lease payments 71,197 4,586 Less: Imputed interest (23,215 ) (256 ) Total $ 47,982 $ 4,330 The Company's leases, excluding short-term leases, have remaining terms of less than one year to 30.6 years , some of which include options to extend for up to 10 years , and some of which include options to terminate within one year. As of March 31, 2020 |
Leases | Leases The components of lease expense were as follows: Three Months Ended (In thousands) March 31 March 31 Finance leases: Amortization expense $ 371 $ 310 Interest on lease liabilities 52 4 Operating leases 4,284 3,693 Short-term leases 6,703 4,571 Variable lease expense 408 219 Sublease income (50 ) (49 ) Total lease expense from continuing operations $ 11,768 $ 8,748 Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) March 31 March 31 Cash paid for amounts included in the measurement of lease liabilities: Cash flows from operating activities - Operating leases $ 3,789 $ 3,552 Cash flows from financing activities - Finance leases 324 363 Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) $ 2,217 $ 34,750 Finance leases 1,234 373 (a) Cash flows for Three Months Ended March 31, 2019 include ROU assets of approximately $34 million that were recorded upon adoption at January 1, 2019. Supplemental balance sheet information related to leases was as follows: (In thousands) March 31 December 31, 2019 Operating Leases: Operating lease right-of-use assets $ 50,491 $ 52,065 Current portion of operating lease liabilities 12,421 $ 12,544 Operating lease liabilities 35,561 36,974 Finance Leases: Property, plant and equipment, net $ 4,291 $ 3,519 Current maturities of long-term debt 1,346 $ 1,237 Long-term debt 2,984 2,218 Supplemental additional information related to leases is as follows: March 31 December 31 Other information: Weighted average remaining lease term - Operating leases (in years) 11.81 11.57 Weighted average remaining lease term - Finance leases (in years) 3.89 4.01 Weighted average discount rate - Operating leases 6.3 % 6.3 % Weighted average discount rate - Finance leases 4.3 % 4.2 % Maturities of lease liabilities were as follows: (In thousand) Operating Leases Finance Leases Year Ending December 31 st : 2020 (excluding the three months ended March 31, 2020) $ 11,458 $ 1,069 2021 11,527 1,198 2022 7,615 941 2023 5,369 748 2024 3,210 587 After 2024 32,018 43 Total lease payments 71,197 4,586 Less: Imputed interest (23,215 ) (256 ) Total $ 47,982 $ 4,330 The Company's leases, excluding short-term leases, have remaining terms of less than one year to 30.6 years , some of which include options to extend for up to 10 years , and some of which include options to terminate within one year. As of March 31, 2020 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 : (In thousands) Harsco Environmental Segment Harsco Clean Earth Segment Harsco Rail Segment Consolidated Totals Balance at December 31, 2019 $ 395,113 $ 330,230 $ 13,026 $ 738,369 Changes to goodwill (a) 1,785 (129 ) — 1,656 Foreign currency translation (12,143 ) — — (12,143 ) Balance at March 31, 2020 $ 384,755 $ 330,101 $ 13,026 $ 727,882 (a) The changes to goodwill relate to immaterial acquisitions in the Harsco Environmental Segment. 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, 2020 , no interim goodwill impairment testing was necessary. The Company has concluded that no triggering event occurred during the three months ended March 31, 2020. However, a prolonged economic downturn resulting from the COVID-19 coronavirus pandemic could impact the Company's future projected cash flows used to estimate fair value, and/or result in a sustained decrease in the Company’s share price, which could indicate an impairment. Intangible assets, net on the Company's Condensed Consolidated Balance Sheets consist of the following: March 31, 2020 December 31, 2019 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer related $ 143,092 $ 99,280 $ 143,996 $ 99,327 Permits 170,448 7,045 170,322 4,694 Technology related 36,739 6,142 36,467 5,635 Trade names 31,558 2,801 31,719 2,182 Air rights 26,139 549 26,139 411 Patents 192 132 249 168 Other 3,677 1,176 3,765 1,158 Total $ 411,845 $ 117,125 $ 412,657 $ 113,575 Amortization expense for intangible assets was as follows: Three Months Ended March 31 (In thousands) 2020 2019 Amortization expense for intangible assets $ 5,918 $ 1,939 The estimated amortization expense for the next five fiscal years based on current intangible assets is as follows: (In thousands) 2020 2021 2022 2023 2024 Estimated amortization expense (b) $ 24,300 $ 23,100 $ 22,400 $ 22,400 $ 22,400 (b) These estimated amortization expense amounts do not reflect the potential effect of future foreign currency exchange fluctuations. |
Debt and Credit Agreements
Debt and Credit Agreements | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements In March 2020 the Company raised a new term loan facility of $280 million ("New Term Loan") as a new tranche under the existing Senior Secured Credit Facilities. There were no borrowings outstanding under the New Term Loan at March 31, 2020. The New Term Loan was fully drawn on April 6, 2020 to partially fund the acquisition of the Stericycle Environmental Solutions business ("ESOL"). Borrowings under the New Term Loan bear interest at a rate per annum ranging from 150 to 225 basis points over adjusted LIBOR (as defined in the Credit Agreement governing the Senior Secured Credit Facilities). The New Term Loan will mature on June 28, 2024. The Company capitalized $1.7 million of fees related to the issuance of the New Term Loan, of which $1.6 million has been paid as of March 31, 2020. Additionally, the Company amended the Senior Secured Credit Facilities to increase the net debt to consolidated adjusted earnings before interest, tax, depreciation and amortization ratio covenant to 5.0 through December 2020, which decreases to 4.5 through December 2021 and 4.0 for periods thereafter. During the three months ended March 31, 2020, $0.5 million of fees and expenses were recognized related to the amended Senior Secured Credit Facilities. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2020 | |
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) 2020 2019 2020 2019 Service costs $ — $ 10 $ 429 $ 356 Interest costs 1,845 2,651 4,395 5,664 Expected return on plan assets (2,842 ) (2,593 ) (10,190 ) (9,517 ) Recognized prior service costs — — 107 66 Recognized loss 1,425 1,405 3,655 3,653 Defined benefit pension plans net periodic pension cost (benefit) $ 428 $ 1,473 $ (1,604 ) $ 222 Three Months Ended Company Contributions March 31 (In thousands) 2020 2019 Defined benefit pension plans (U.S.) $ 2,027 $ 1,479 Defined benefit pension plans (International) 10,060 9,270 Multiemployer pension plans 409 521 Defined contribution pension plans 3,169 3,390 The Company's estimate of expected contributions to be paid during the remainder of 2020 for the U.S. and international defined benefit pension plans are $6.2 million and $11.0 million |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax benefit related to continuing operations for the three months ended March 31, 2020 was $0.7 million compared with an income tax expense related to continuing operations of $1.2 million for the three months ended March 31, 2019 . The change in the income tax benefit for the three months ended March 31, 2020 compared with the income tax expense for the three months ended March 31, 2019 is the result of lower taxable income, primarily resulting from a net increase in strategic costs related to the ESOL acquisition, partially offset by a decreased income tax benefit recognized for stock-based compensation vesting during the first quarter of 2020 compared to the first quarter of 2019 . 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, 2020 was $4.5 million , including interest and penalties. Within the next twelve months, it is reasonably possible that $0.3 million |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 is constructing facilities to process the salt cakes, and the Company currently expects those facilities to come online in 2020. 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 reais per day (or approximately $1,000 per day) and CSN 20,000 Brazilian reais per day (or approximately $4,000 per day) until the requirements of the injunction are met. On November 1, 2019 the Court issued an additional order increasing the fines assessed to the Company to 25,000 Brazilian reais per day (or approximately $5,000 per day) and raising the fines assessed to CSN to 100,000 Brazilian reais per day (or approximately $19,000 per day). The Court also assessed an additional fine of 10,000,000 Brazilian reais (or approximately $1.9 million ) against CSN and the Company jointly. The Company is appealing the fines 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 three additional enforcement actions since that time and have asserted fines of approximately $0.5 million which the Company has recorded, 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. On June 13, 2019 the Pennsylvania Department of Environmental Protection ("PA DEP") indicated to the Company and a landowner who received processed slag from the Company that it plans to require action to bring the landowner’s site into compliance and to assess a civil penalty against the Company and the landowner. The Company is working with the landowner and PA DEP to determine the most effective way to address PA DEP’s concerns about the site and has established a $0.4 million reserve, which represents the Company’s best estimate of the costs to bring the landowner's site into compliance. On March 24, 2017 the Allegheny County Health Department issued a notice of violation against the Company concerning the Company’s operations at a customer site in Natrona, Pennsylvania. On January 21, 2020 the Company paid $0.1 million to settle the civil penalties accrued up to that date. In April 2020, the Company received a penalty assessment of $4,500 for three alleged additional events. It is possible the Company could incur additional penalties for future violations. Pursuant to the settlement agreement, the Company and its customer have also agreed to construct at its customer's costs and bring certain slag processing operations into a building. 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, 2020 the principal amount of the tax assessment from the SPRA with regard to this case is approximately $1.2 million , with penalty, interest and fees assessed to date increasing such amount by an additional $16.2 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 $1 million . After calculating the interest accrued on the penalty, the Company estimates that this ruling reduces the current overall potential liability for this case to approximately $7 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 has appealed to the judicial phase. The aggregate amount assessed by the tax authorities in August 2005 was $4.9 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 $1.2 million , with penalty and interest assessed through that date increasing such amount by an additional $3.7 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 the current overall liability for this case to be 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 Environmental 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, 2020 and December 31, 2019 the Company has established reserves of $5.0 million and $6.5 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. 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, 2020 there were approximately 17,138 pending asbestos personal injury actions filed against the Company. Of those actions, approximately 16,585 were filed in the New York Supreme Court (New York County), approximately 118 were filed in other New York State Supreme Court Counties and approximately 435 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, 2020 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 35 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, 2020 the Company has obtained dismissal in approximately 28,245 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, 2019 for additional information on Accrued insurance and loss reserves. |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Shares | 3 Months Ended |
Mar. 31, 2020 | |
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) 2020 2019 Income (loss) from continuing operations attributable to Harsco Corporation common stockholders $ (8,782 ) $ 10,474 Weighted-average shares outstanding: Weighted-average shares outstanding - basic 78,761 79,907 Dilutive effect of stock-based compensation — 1,746 Weighted-average shares outstanding - diluted 78,761 81,653 Earnings (loss) from continuing operations per common share, attributable to Harsco Corporation common stockholders: Basic $ (0.11 ) $ 0.13 Diluted $ (0.11 ) $ 0.13 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) 2020 2019 Restricted stock units 749 — Stock appreciation rights 2,643 608 Performance share units 940 233 |
Derivative Instruments, Hedging
Derivative Instruments, Hedging Activities and Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities 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 Company's 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. 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 Company's 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, 2020 Asset derivatives (Level 2): Foreign currency exchange forward contracts Other current assets $ 4,113 $ 4,898 $ 9,011 Total $ 4,113 $ 4,898 $ 9,011 Liability derivatives (Level 2): Foreign currency exchange forward contracts Other current liabilities $ 27 $ 13,471 $ 13,498 Interest rate swaps Other current liabilities 3,543 — 3,543 Interest rate swaps Other liabilities 6,035 — 6,035 Total $ 9,605 $ 13,471 $ 23,076 December 31, 2019 Asset derivatives (Level 2): Foreign currency exchange forward contracts Other current assets $ 2,039 $ 946 $ 2,985 Total $ 2,039 $ 946 $ 2,985 Liability derivatives (Level 2): Foreign currency exchange forward contracts Other current liabilities $ 140 $ 3,733 $ 3,873 Interest rate swaps Other current liabilities 2,098 — 2,098 Interest rate swaps Other liabilities 4,281 — 4,281 Total $ 6,519 $ 3,733 $ 10,252 All of the Company's derivatives are recorded on the Company's 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 did not result in a net asset or liability at March 31, 2020 or December 31, 2019 . The effect of derivative instruments on the Company's Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income (Loss): 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) 2020 2019 2020 2019 Foreign currency exchange forward contracts $ 2,037 $ (712 ) Product revenues $ (1,404 ) $ (32 ) Interest rate swaps (3,578 ) (3,309 ) Interest expense 378 (301 ) Cross-currency interest rate swaps (a) 58 (52 ) Interest expense 305 314 $ (1,483 ) $ (4,073 ) $ (721 ) $ (19 ) (a) 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 Company's Condensed Consolidated Statements of Operations: Three Months Ended March 31 2020 2019 (in thousands) Product Revenues Interest Expense Product Revenues Interest Expense Total amounts of line items presented in the Condensed Consolidated Statement of Operations in which the effects of cash flow hedges are recorded $ 107,502 $ (12,649 ) $ 100,382 $ (5,507 ) Interest rate swaps: Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income — (378 ) — 301 Foreign exchange contracts: Amount of gain or reclassified from accumulated other comprehensive loss into income 1,404 — 32 — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value 183 — 78 — Cross-currency interest rate swaps: Amount of loss reclassified from accumulated other comprehensive income into income — (305 ) — (314 ) Derivatives Not Designated as Hedging Instruments Location of Gain Recognized in Income on Derivatives Amount of Gain Recognized in Income on Derivatives (b) Three Months Ended March 31 (In thousands) 2020 2019 Foreign currency exchange forward contracts Cost of services and products sold $ 5,542 $ 2,323 (b) These gains 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. At March 31, 2020 and December 31, 2019 the notional amounts of foreign currency exchange forward contracts were $432.0 million and $496.3 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 losses of $9.7 million and pre-tax net gains of $4.8 million for the three months ended March 31, 2020 and 2019 , respectively, in Accumulated other comprehensive loss . Interest Rate Swaps The Company uses interest rate swaps in conjunction with certain variable rate 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 2.45% for 2020 to 3.12% for 2022. During June 2019 the Company effected the early termination of interest rate swaps that covered the period from 2019 through 2022 and had the effect of converting $100.0 million of the Term Loan Facility from floating-rate to fixed-rate. This termination was conducted as a result of the Company's new Notes offering and required repayment of a portion of the Term Loan Facility with proceeds from the AXC disposal. The total notional of the Company's interest rate swaps is $200.0 million as of March 31, 2020 . 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 on the Company's Condensed Consolidated Statements of Operations and offset currency fluctuation effects on the debt principal. The Company had no outstanding CCIRs at March 31, 2020 . 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, 2020 and December 31, 2019 the total fair value of long-term debt (excluding deferred financing costs), including current maturities, was $739.2 million and $827.2 million , respectively, compared with a carrying value of $810.3 million and $795.0 million |
Review of Operations by Segment
Review of Operations by Segment | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Review of Operations by Segment | Review of Operations by Segment Three Months Ended March 31 (In thousands) 2020 2019 Revenues From Continuing Operations (a) Harsco Environmental $ 241,559 $ 261,312 Harsco Clean Earth 78,812 — Harsco Rail 78,470 68,590 Total Revenues From Continuing Operations $ 398,841 $ 329,902 Operating Income (Loss) From Continuing Operations (a) Harsco Environmental $ 10,520 $ 24,497 Harsco Clean Earth 4,245 — Harsco Rail 6,472 5,389 Corporate (18,356 ) (10,062 ) Total Operating Income From Continuing Operations $ 2,881 $ 19,824 Depreciation and Amortization (a) Harsco Environmental $ 27,311 $ 28,705 Harsco Clean Earth 6,519 — Harsco Rail 1,299 1,167 Corporate 1,152 1,352 Total Depreciation and Amortization $ 36,281 $ 31,224 Capital Expenditures (a) Harsco Environmental $ 24,748 $ 29,163 Harsco Clean Earth 1,442 — Harsco Rail 1,539 3,916 Corporate 58 1,153 Total Capital Expenditures $ 27,787 $ 34,232 (a) The Company's acquisition of Clean Earth closed on June 28, 2019. The operating results of the former Harsco Industrial Segment has been reflected as discontinued operations in the Company's Condensed Consolidated Statement of Operations for all periods presented. See Note 3, Acquisitions and Dispositions, for additional details. Reconciliation of Segment Operating Income to Income (Loss) From Continuing Operations Before Income Taxes and Equity Income Three Months Ended March 31 (In thousands) 2020 2019 Segment operating income $ 21,237 $ 29,886 General Corporate expense (18,356 ) (10,062 ) Operating income from continuing operations 2,881 19,824 Interest income 193 533 Interest expense (12,649 ) (5,507 ) Unused debt commitment and amendment fees (488 ) — Defined benefit pension income (expense) 1,589 (1,338 ) Income (loss) from continuing operations before income taxes and equity income $ (8,474 ) $ 13,512 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
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 Harsco Clean Earth Segment and the service components of the Harsco Environmental and Harsco Rail Segments. Product revenues include portions of the Harsco Environmental and Harsco Rail Segments. A summary of the Company's revenues by primary geographical markets as well as by key product and service groups is as follows: Three Months Ended March 31, 2020 (In thousands) Harsco Environmental Segment Harsco Clean Earth Segment Harsco Rail Segment Corporate Consolidated Totals Primary Geographical Markets (a) (b) : North America $ 69,881 $ 78,812 $ 53,773 $ — $ 202,466 Western Europe 96,317 — 18,164 — 114,481 Latin America (c) 33,260 — 665 — 33,925 Asia-Pacific 21,996 — 5,868 — 27,864 Middle East and Africa 15,889 — — — 15,889 Eastern Europe 4,216 — — — 4,216 Total Revenues $ 241,559 $ 78,812 $ 78,470 $ — $ 398,841 Key Product and Service Groups (a) : Environmental services related to resource recovery for metals manufacturing and related logistical services $ 207,346 $ — $ — $ — $ 207,346 Applied products 30,262 — — — 30,262 Environmental systems for aluminum dross and scrap processing 3,951 — — — 3,951 Railway track maintenance equipment — — 42,615 — 42,615 After-market parts and services; safety and diagnostic technology — — 31,200 — 31,200 Railway contracting services — — 4,655 — 4,655 Waste processing and reuse solutions — 78,812 — — 78,812 Total Revenues $ 241,559 $ 78,812 $ 78,470 $ — $ 398,841 Three Months Ended March 31, 2019 (In thousands) Harsco Environmental Segment Harsco Clean Earth Segment Harsco Rail Segment Corporate Consolidated Totals Primary Geographical Markets (a) (b) : North America $ 73,349 $ — $ 50,365 $ — $ 123,714 Western Europe 98,221 — 10,013 — 108,234 Latin America (c) 36,991 — 591 — 37,582 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 $ — $ 68,590 $ — $ 329,902 Key Product and Service Groups (a) : Environmental services related to resource recovery for metals manufacturing and related logistical services $ 224,061 $ — $ — $ — $ 224,061 Applied products 30,390 — — — 30,390 Environmental systems for aluminum dross and scrap processing 6,861 — — — 6,861 Railway track maintenance equipment — — 33,608 — 33,608 After-market parts and services; safety and diagnostic technology — — 31,301 — 31,301 Railway contracting services — — 3,681 — 3,681 Waste processing and reuse solutions — — — — — Total Revenues $ 261,312 $ — $ 68,590 $ — $ 329,902 (a) The Company's acquisition of Clean Earth closed on June 28, 2019. The operating results of the former Harsco Industrial Segment have been reflected as discontinued operations in the Company's Condensed Consolidated Statement of Operations for all periods presented. See Note 3, Acquisitions and Dispositions, for additional details. (b) Revenues are attributed to individual countries based on the location of the facility generating the revenue. (c) Includes Mexico. The Company may receive payments in advance of earning revenue, which are treated as Advances on contracts on the Company's Condensed Consolidated Balance Sheets. The Company may recognize revenue in advance of being able to contractually invoice the customer, which is treated as Contract assets on the Company's Condensed Consolidated Balance Sheets. 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. The Company had Contract assets totaling $50.5 million and $31.2 million at March 31, 2020 and December 31, 2019 , respectively. The increase is due principally to recognition of additional contract assets in excess of contract assets transferred to accounts receivable during the three months ended March 31, 2020 primarily in the Harsco Rail Segment. The Company had Advances on contracts totaling $101.6 million and $60.3 million at March 31, 2020 and December 31, 2019 , respectively. The increase is due principally to the receipt of new advances on contracts in excess of recognition of revenue for the Deutsche Bahn contract in the Harsco Rail Segment. During the three months ended March 31, 2020 and 2019 the Company recognized approximately $18 million and approximately $17 million , respectively, of revenue related to amounts previously included in Advances on contracts. At March 31, 2020 the Harsco Environmental Segment had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $98.1 million . Of this amount, $36.1 million is expected to be fulfilled by March 31, 2021, $17.9 million by March 31, 2022, $15.7 million by March 31, 2023, $11.6 million by March 31, 2024 and the remainder thereafter. These amounts exclude any variable fees, fixed fees subject to indexation and any performance obligations expected to be satisfied within one year. The decrease from December 31, 2019 is primarily due to the renegotiation of a contract with a customer in the U.K. who had entered into administration. At March 31, 2020 the Harsco Rail Segment had remaining, fixed, unsatisfied performance obligations where the expected contract duration exceeds one year totaling $331.6 million . Of this amount, $111.3 million is expected to be fulfilled by March 31, 2021, $94.6 million by March 31, 2022, $65.4 million by March 31, 2023, $49.8 million by March 31, 2024 and the remainder thereafter. These amounts exclude any variable fees, fixed fees subject to indexation and any performance obligations expected to be satisfied within one year. The increase from December 31, 2019 is primarily attributable to new contract signings in U.S. and India. |
Other (Income) Expenses, Net
Other (Income) Expenses, Net | 3 Months Ended |
Mar. 31, 2020 | |
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) 2020 2019 Employee termination benefit costs $ 5,455 $ 2,519 Other costs to exit activities 176 1,155 Impaired asset write-downs 69 214 Contingent consideration adjustments — 369 Net gains (19 ) (2,271 ) Other 52 (243 ) Other expenses, net $ 5,733 $ 1,743 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Components of Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is included on the Company's 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, 2019 and 2020 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, 2018 $ (159,810 ) $ 1,389 $ (408,655 ) $ (31 ) $ (567,107 ) Adoption of new accounting standard — — (21,429 ) (a) — (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 ) 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, 2019 $ (143,340 ) $ (3,717 ) $ (440,562 ) $ (3 ) $ (587,622 ) Other comprehensive income (loss) before reclassifications (71,472 ) (b) (1,042 ) (c) 21,429 (b) (18 ) (51,103 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 12,906 (645 ) 8,840 — 21,101 Total other comprehensive income (loss) (58,566 ) (1,687 ) 30,269 (18 ) (30,002 ) Other comprehensive income attributable to noncontrolling interests 1,148 — — — 1,148 Other comprehensive income (loss) attributable to Harsco Corporation (57,418 ) (1,687 ) 30,269 (18 ) (28,854 ) Balance at March 31, 2020 $ (200,758 ) $ (5,404 ) $ (410,293 ) $ (21 ) $ (616,476 ) (a) Represents the adoption of the new accounting standard on January 1, 2019 related to stranded tax effects from the Tax Cuts and Jobs Act. (b) Principally foreign currency fluctuation. (c) Net change from periodic revaluations. Amounts reclassified from Accumulated other comprehensive loss are as follows: (In thousands) Three Months Ended Affected Caption on the Company's Condensed Consolidated Statements of Operations March 31 March 31 Recognition of cumulative foreign currency translation adjustments: Gain on substantial liquidation of subsidiaries (d) $ — $ (2,271 ) Other expenses, net Loss on substantial liquidation of subsidiaries (d) 12,906 — Gain on sale of discontinued business Amortization of cash flow hedging instruments: Foreign currency exchange forward contracts $ (1,404 ) $ (32 ) Product revenues Cross-currency interest rate swaps 305 314 Interest expense Interest rate swaps 378 (301 ) Interest expense Total before tax (721 ) (19 ) Tax expense 76 (44 ) Total reclassification of cash flow hedging instruments, net of tax $ (645 ) $ (63 ) Amortization of defined benefit pension items (e) : Recognized losses $ 5,080 $ 5,058 Defined benefit pension income (expense) Recognized prior-service costs 107 66 Defined benefit pension income (expense) Pension liability transfer - discontinued business 5,363 — Gain on sale of discontinued business Total before tax 10,550 5,124 Tax benefit (1,710 ) (342 ) Total reclassification of defined benefit pension items, net of tax $ 8,840 $ 4,782 (d) No tax impact. (e) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See Note 10, Employee Benefit Plans, for additional details. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 Condensed Consolidated Balance Sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2019 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, 2019 . 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. Discontinued Operations |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted and Recently Issued Accounting Standards The following accounting standards have been adopted in 2020: On January 1, 2020 the Company adopted changes issued by the Financial Accounting Standards Boards ("FASB") which updated 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. Provisions for receivables will be recorded as Allowance for expected credit losses, replacing the previously utilized Allowance for doubtful accounts. In addition, these changes required certain expanded disclosures. Other than changes in disclosure, these changes did not have a material impact on the Company's condensed consolidated financial statements as the calculation of expected credit losses did not yield results that were materially different from the methodology previously utilized by the Company. See Note 4, Accounts Receivable and Note Receivable for additional information. On January 1, 2020 the Company adopted changes issued by FASB that removed 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. These changes did not have a material impact on the Company's condensed consolidated financial statements. On January 1, 2020 the Company adopted changes issued by FASB which modified 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. Other than required expanded disclosures, the adoption of these changes did not have a material impact on the Company's condensed consolidated financial statements. The following accounting standards have been issued and become effective for the Company at a future date: In December 2019 the FASB issued changes which are intended to reduce complexity and simplify the accounting for income taxes in accordance with U.S. GAAP by removing certain exceptions related to investments, intraperiod allocations and interim calculations and clarifying existing guidance to improve consistent application. The changes become effective for the Company on January 1, 2021 with early adoption permitted. Management is currently evaluating the impact of these changes on its condensed consolidated financial statements. In March 2020 the FASB issued changes that provides companies with optional guidance to ease the potential accounting burden associated with transitioning from reference rates that are expected to be discontinued. In response to the concerns about risks of interbank offered rates (IBORs) and, particularly, the risk of cessation of the London Interbank Offered Rate ("LIBOR"), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The changes provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The changes can be adopted no later than December 31, 2022 with early adoption permitted. Management does not believe these changes will have a material impact on its condensed consolidated financial statements. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of assets acquired and liabilities assumed | Preliminary Valuation (In millions) June 28, 2019 Measurement Period Adjustments (a) March 31 Cash and cash equivalents (b) $ 42.8 $ (39.2 ) $ 3.6 Trade accounts receivable, net 63.7 (1.2 ) 62.5 Other receivables 0.8 1.3 2.1 Other current assets 8.7 (1.4 ) 7.3 Property, plant and equipment 75.6 1.6 77.2 Right-of-use assets 14.4 11.4 25.8 Goodwill 313.8 16.3 330.1 Intangible assets 261.1 (18.9 ) 242.2 Other assets 4.0 (2.8 ) 1.2 Accounts payable (23.0 ) (0.1 ) (23.1 ) Acquisition consideration payable (b) (39.2 ) 39.2 — Other current liabilities (18.0 ) (1.7 ) (19.7 ) Net deferred taxes liabilities (51.2 ) 5.8 (45.4 ) Operating lease liabilities (11.1 ) (8.4 ) (19.5 ) Other liabilities (6.5 ) (2.1 ) (8.6 ) Total identifiable net assets of Clean Earth $ 635.9 $ (0.2 ) $ 635.7 (a) The measurement period adjustments did not have a material impact on the Company's previously reported operating results. (b) Acquisition consideration payable represents a portion of the cash consideration not paid out until July 2019. |
Preliminary valuation of identifiable intangible assets and amortization periods | The following table details the preliminary valuation of identifiable intangible assets and amortization periods for Clean Earth: Preliminary Valuation (Dollars in millions) Weighted-Average Amortization Period Preliminary Valuation June 28, 2019 Measurement Period Adjustments (c) March 31 Permits 18 years $ 176.1 $ (6.0 ) $ 170.1 Customer relationships 8 years 33.4 (12.9 ) 20.5 Air rights Usage based (d) 25.6 — 25.6 Trade names 12 years 26.0 — 26.0 Total identifiable intangible assets of Clean Earth $ 261.1 $ (18.9 ) $ 242.2 (c) The measurement period adjustments did not have a material impact on the Company's previously reported operating results. (d) The Company estimates that based on current usage that the expected useful life would be 27 years. |
Pro forma information | The pro forma information below gives effect to the Clean Earth acquisition as if it had been completed on January 1, 2018. The pro forma information is not necessarily indicative of the Company’s results of operations had the acquisition been completed on the above date, nor is it necessarily indicative of future results. The pro forma information does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisition and does not reflect the additional revenue opportunities following the acquisition. The pro forma information below includes adjustments to reflect additional depreciation and amortization expense based on the estimated fair value and useful lives of intangible assets and fixed assets acquired; includes additional interest expense of approximately $9.0 million three months ended March 31, 2019 on the acquisition related borrowings used to finance the Clean Earth acquisition and excludes certain directly attributable transaction costs and historic Clean Earth interest expense. These pro forma adjustments are subject to change as additional analysis is performed. The values assigned to the assets acquired and liabilities assumed are based on preliminary valuations and are subject to change as the Company obtains additional information during the measurement period. Three Months Ended March 31 (In millions) 2019 Pro forma revenues $ 393.5 Pro forma net income (including discontinued operations) 15.6 |
Summary of changes in fair value of contingent consideration | |
Balance sheet positions and financial information included in net income from discontinued operations and statements of cash flows | The following is selected financial information included on the Company's Condensed Consolidated Statements of Cash Flows attributable to the former Harsco Industrial Segment: Three Months Ended March 31 (In millions) 2020 2019 Non-cash operating items Depreciation and amortization $ — $ 2,025 Cash flows from investing activities Purchases of property, plant and equipment 106 2,175 Certain key selected financial information included in net income from discontinued operations for the former Harsco Industrial Segment is as follows: Three Months Ended March 31 (In millions) 2020 2019 Amounts directly attributable to the former Harsco Industrial Segment: Total revenues $ 10,203 $ 117,386 Cost of products sold 8,082 87,695 Income from discontinued business 218 14,192 Additional amounts allocated to the former Harsco Industrial Segment: Selling, general and administrative expenses (e) $ 1,266 $ — Interest expense (f) — 4,232 (e) The Company has allocated directly attributable transaction costs to discontinued operations. (f) The Company has allocated interest expense, including a portion of the amount reclassified into income for the Company's interest rate swaps and amortization of deferred financing costs resulting from the AXC disposal, as part of discontinued operations. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable consist of the following: (In thousands) March 31 December 31 Trade accounts receivable $ 333,725 $ 323,502 Less: Allowance for expected credit losses and doubtful accounts (13,015 ) (13,512 ) Trade accounts receivable, net $ 320,710 $ 309,990 Other receivables (a) $ 18,685 $ 21,265 (a) |
Schedule of provision for doubtful accounts related to trade accounts receivable | The change in the provision for expected credit losses and doubtful accounts related to trade accounts receivable was as follows: Three Months Ended March 31 (In thousands) 2020 2019 Increase (decrease) in provision for expected credit losses and doubtful accounts related to trade accounts receivable $ 219 $ (10 ) |
Accounts Receivable and Inventories | Accounts Receivable and Note Receivable Accounts receivable are stated at net realizable value which represents the face value of the receivable less an allowance for expected credit losses. The allowance for expected credit losses is maintained for expected lifetime losses resulting from the inability or unwillingness of customers to make required payments. The Company’s expected credit loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. When required, the Company adjusts the loss-rate methodology to account for current conditions and reasonable and supportable expectations of future economic and market conditions. The Company generally assesses future economic conditions for a period which corresponds with the contractual life of its accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Prior to the adoption of the new methodology, the Company established an allowance for doubtful accounts based upon a specific-identification method as well as historical collection experience, as appropriate. Accounts receivable consist of the following: (In thousands) March 31 December 31 Trade accounts receivable $ 333,725 $ 323,502 Less: Allowance for expected credit losses and doubtful accounts (13,015 ) (13,512 ) Trade accounts receivable, net $ 320,710 $ 309,990 Other receivables (a) $ 18,685 $ 21,265 (a) Other receivables include employee receivables, insurance receivable, tax claims and other miscellaneous items not included in Trade accounts receivable, net. The change in the provision for expected credit losses and doubtful accounts related to trade accounts receivable was as follows: Three Months Ended March 31 (In thousands) 2020 2019 Increase (decrease) in provision for expected credit losses and doubtful accounts related to trade accounts receivable $ 219 $ (10 ) At March 31, 2020 approximately $3.7 million of the Company's accounts receivable balance was past due by twelve months or more, primarily in the Clean Earth Segment, of which the majority of the balance was represented by a single customer from whom payment is expected within the next twelve months, while the rest were either fully or nearly fully reserved, although collection is still ultimately expected. In January 2020 the Company sold IKG for $85 million including cash and a note receivable, subject to post-closing adjustments. The note receivable from the buyer has a face value of $40 million bearing interest at 2.50% , that is paid in kind and matures on January 31, 2027. Any unpaid principal, along with any accrued but unpaid interest is payable at maturity. Prepayment is required in case of a change in control or a percentage of excess cash flow, as defined in the note receivable agreement. Because there are no scheduled payments under the terms of the note receivable, the balance is not classified as current as of March 31, 2020 and is included in the caption Other assets on the Condensed Consolidated Balance Sheet. The initial fair value of the note receivable was $34.3 million which was calculated using an average of various discounted cash flow scenarios based on anticipated timing of repayments (Level 3) and was a non-cash transaction. The note receivable is subsequently measured as amortized costs. Key inputs into the valuation model include: projected timing and amount of cash flows, pro forma debt rating, option-adjusted spread and U.S. Treasury spot rate. At March 31, 2020 the amortized cost of the note receivable was $34.6 million , compared with a fair value of $31.0 million . (In thousands) March 31 December 31 Note receivable $ 34,569 $ — |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following: (In thousands) March 31 December 31 Finished goods $ 13,138 $ 14,550 Work-in-process 10,795 13,088 Raw materials and purchased parts 118,637 104,488 Stores and supplies 25,320 24,865 Total inventories $ 167,890 $ 156,991 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 $ 29,811 $ 30,409 Land improvements 17,822 19,155 Buildings and improvements 180,907 182,795 Machinery and equipment 1,418,493 1,518,652 Uncompleted construction 57,327 55,592 Gross property, plant and equipment 1,704,360 1,806,603 Less: Accumulated depreciation (1,171,011 ) (1,244,817 ) Property, plant and equipment, net $ 533,349 $ 561,786 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense and Supplemental Cash Flow and Additional Information | he components of lease expense were as follows: Three Months Ended (In thousands) March 31 March 31 Finance leases: Amortization expense $ 371 $ 310 Interest on lease liabilities 52 4 Operating leases 4,284 3,693 Short-term leases 6,703 4,571 Variable lease expense 408 219 Sublease income (50 ) (49 ) Total lease expense from continuing operations $ 11,768 $ 8,748 Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) March 31 March 31 Cash paid for amounts included in the measurement of lease liabilities: Cash flows from operating activities - Operating leases $ 3,789 $ 3,552 Cash flows from financing activities - Finance leases 324 363 Right-of-use assets obtained in exchange for lease obligations: Operating leases (a) $ 2,217 $ 34,750 Finance leases 1,234 373 (a) Cash flows for Three Months Ended March 31, 2019 include ROU assets of approximately $34 million that were recorded upon adoption at January 1, 2019. Supplemental additional information related to leases is as follows: March 31 December 31 Other information: Weighted average remaining lease term - Operating leases (in years) 11.81 11.57 Weighted average remaining lease term - Finance leases (in years) 3.89 4.01 Weighted average discount rate - Operating leases 6.3 % 6.3 % Weighted average discount rate - Finance leases 4.3 % 4.2 % |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: (In thousands) March 31 December 31, 2019 Operating Leases: Operating lease right-of-use assets $ 50,491 $ 52,065 Current portion of operating lease liabilities 12,421 $ 12,544 Operating lease liabilities 35,561 36,974 Finance Leases: Property, plant and equipment, net $ 4,291 $ 3,519 Current maturities of long-term debt 1,346 $ 1,237 Long-term debt 2,984 2,218 |
Maturities of Operating Lease Liabilities | Maturities of lease liabilities were as follows: (In thousand) Operating Leases Finance Leases Year Ending December 31 st : 2020 (excluding the three months ended March 31, 2020) $ 11,458 $ 1,069 2021 11,527 1,198 2022 7,615 941 2023 5,369 748 2024 3,210 587 After 2024 32,018 43 Total lease payments 71,197 4,586 Less: Imputed interest (23,215 ) (256 ) Total $ 47,982 $ 4,330 |
Maturities of Finance Lease Liabilities | Maturities of lease liabilities were as follows: (In thousand) Operating Leases Finance Leases Year Ending December 31 st : 2020 (excluding the three months ended March 31, 2020) $ 11,458 $ 1,069 2021 11,527 1,198 2022 7,615 941 2023 5,369 748 2024 3,210 587 After 2024 32,018 43 Total lease payments 71,197 4,586 Less: Imputed interest (23,215 ) (256 ) Total $ 47,982 $ 4,330 |
Future Minimum Payments Under Operating Leases with Noncancelable Terms | (In thousand) Operating Leases Finance Leases Year Ending December 31 st : 2020 (excluding the three months ended March 31, 2020) $ 11,458 $ 1,069 2021 11,527 1,198 2022 7,615 941 2023 5,369 748 2024 3,210 587 After 2024 32,018 43 Total lease payments 71,197 4,586 Less: Imputed interest (23,215 ) (256 ) Total $ 47,982 $ 4,330 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 : (In thousands) Harsco Environmental Segment Harsco Clean Earth Segment Harsco Rail Segment Consolidated Totals Balance at December 31, 2019 $ 395,113 $ 330,230 $ 13,026 $ 738,369 Changes to goodwill (a) 1,785 (129 ) — 1,656 Foreign currency translation (12,143 ) — — (12,143 ) Balance at March 31, 2020 $ 384,755 $ 330,101 $ 13,026 $ 727,882 (a) The changes to goodwill relate to immaterial acquisitions in the Harsco Environmental Segment. |
Schedule of intangible assets by class | Intangible assets, net on the Company's Condensed Consolidated Balance Sheets consist of the following: March 31, 2020 December 31, 2019 (In thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer related $ 143,092 $ 99,280 $ 143,996 $ 99,327 Permits 170,448 7,045 170,322 4,694 Technology related 36,739 6,142 36,467 5,635 Trade names 31,558 2,801 31,719 2,182 Air rights 26,139 549 26,139 411 Patents 192 132 249 168 Other 3,677 1,176 3,765 1,158 Total $ 411,845 $ 117,125 $ 412,657 $ 113,575 |
Schedule of amortization expense | Amortization expense for intangible assets was as follows: Three Months Ended March 31 (In thousands) 2020 2019 Amortization expense for intangible assets $ 5,918 $ 1,939 |
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) 2020 2021 2022 2023 2024 Estimated amortization expense (b) $ 24,300 $ 23,100 $ 22,400 $ 22,400 $ 22,400 (b) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) 2020 2019 2020 2019 Service costs $ — $ 10 $ 429 $ 356 Interest costs 1,845 2,651 4,395 5,664 Expected return on plan assets (2,842 ) (2,593 ) (10,190 ) (9,517 ) Recognized prior service costs — — 107 66 Recognized loss 1,425 1,405 3,655 3,653 Defined benefit pension plans net periodic pension cost (benefit) $ 428 $ 1,473 $ (1,604 ) $ 222 |
Schedule of contributions to pension plans | Three Months Ended Company Contributions March 31 (In thousands) 2020 2019 Defined benefit pension plans (U.S.) $ 2,027 $ 1,479 Defined benefit pension plans (International) 10,060 9,270 Multiemployer pension plans 409 521 Defined contribution pension plans 3,169 3,390 |
Reconciliation of Basic and D_2
Reconciliation of Basic and Diluted Shares (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted shares | Three Months Ended March 31 (In thousands, except per share amounts) 2020 2019 Income (loss) from continuing operations attributable to Harsco Corporation common stockholders $ (8,782 ) $ 10,474 Weighted-average shares outstanding: Weighted-average shares outstanding - basic 78,761 79,907 Dilutive effect of stock-based compensation — 1,746 Weighted-average shares outstanding - diluted 78,761 81,653 Earnings (loss) from continuing operations per common share, attributable to Harsco Corporation common stockholders: Basic $ (0.11 ) $ 0.13 Diluted $ (0.11 ) $ 0.13 |
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) 2020 2019 Restricted stock units 749 — Stock appreciation rights 2,643 608 Performance share units 940 233 |
Derivative Instruments, Hedgi_2
Derivative Instruments, Hedging Activities and Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of outstanding derivative contracts | The fair value of outstanding derivative contracts recorded as assets and liabilities on the Company's 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, 2020 Asset derivatives (Level 2): Foreign currency exchange forward contracts Other current assets $ 4,113 $ 4,898 $ 9,011 Total $ 4,113 $ 4,898 $ 9,011 Liability derivatives (Level 2): Foreign currency exchange forward contracts Other current liabilities $ 27 $ 13,471 $ 13,498 Interest rate swaps Other current liabilities 3,543 — 3,543 Interest rate swaps Other liabilities 6,035 — 6,035 Total $ 9,605 $ 13,471 $ 23,076 December 31, 2019 Asset derivatives (Level 2): Foreign currency exchange forward contracts Other current assets $ 2,039 $ 946 $ 2,985 Total $ 2,039 $ 946 $ 2,985 Liability derivatives (Level 2): Foreign currency exchange forward contracts Other current liabilities $ 140 $ 3,733 $ 3,873 Interest rate swaps Other current liabilities 2,098 — 2,098 Interest rate swaps Other liabilities 4,281 — 4,281 Total $ 6,519 $ 3,733 $ 10,252 |
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) 2020 2019 2020 2019 Foreign currency exchange forward contracts $ 2,037 $ (712 ) Product revenues $ (1,404 ) $ (32 ) Interest rate swaps (3,578 ) (3,309 ) Interest expense 378 (301 ) Cross-currency interest rate swaps (a) 58 (52 ) Interest expense 305 314 $ (1,483 ) $ (4,073 ) $ (721 ) $ (19 ) (a) 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 Company's Condensed Consolidated Statements of Operations: Three Months Ended March 31 2020 2019 (in thousands) Product Revenues Interest Expense Product Revenues Interest Expense Total amounts of line items presented in the Condensed Consolidated Statement of Operations in which the effects of cash flow hedges are recorded $ 107,502 $ (12,649 ) $ 100,382 $ (5,507 ) Interest rate swaps: Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income — (378 ) — 301 Foreign exchange contracts: Amount of gain or reclassified from accumulated other comprehensive loss into income 1,404 — 32 — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value 183 — 78 — Cross-currency interest rate swaps: Amount of loss reclassified from accumulated other comprehensive income into income — (305 ) — (314 ) Derivatives Not Designated as Hedging Instruments Location of Gain Recognized in Income on Derivatives Amount of Gain Recognized in Income on Derivatives (b) Three Months Ended March 31 (In thousands) 2020 2019 Foreign currency exchange forward contracts Cost of services and products sold $ 5,542 $ 2,323 (b) These gains 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, 2020 | |
Segment Reporting [Abstract] | |
Schedule of operations by segment | Three Months Ended March 31 (In thousands) 2020 2019 Revenues From Continuing Operations (a) Harsco Environmental $ 241,559 $ 261,312 Harsco Clean Earth 78,812 — Harsco Rail 78,470 68,590 Total Revenues From Continuing Operations $ 398,841 $ 329,902 Operating Income (Loss) From Continuing Operations (a) Harsco Environmental $ 10,520 $ 24,497 Harsco Clean Earth 4,245 — Harsco Rail 6,472 5,389 Corporate (18,356 ) (10,062 ) Total Operating Income From Continuing Operations $ 2,881 $ 19,824 Depreciation and Amortization (a) Harsco Environmental $ 27,311 $ 28,705 Harsco Clean Earth 6,519 — Harsco Rail 1,299 1,167 Corporate 1,152 1,352 Total Depreciation and Amortization $ 36,281 $ 31,224 Capital Expenditures (a) Harsco Environmental $ 24,748 $ 29,163 Harsco Clean Earth 1,442 — Harsco Rail 1,539 3,916 Corporate 58 1,153 Total Capital Expenditures $ 27,787 $ 34,232 (a) The Company's acquisition of Clean Earth closed on June 28, 2019. The operating results of the former Harsco Industrial Segment has been reflected as discontinued operations in the Company's Condensed Consolidated Statement of Operations for all periods presented. See Note 3, Acquisitions and Dispositions, for additional details. |
Reconciliation of segment operating income to income from continuing operations before income taxes and equity income | Reconciliation of Segment Operating Income to Income (Loss) From Continuing Operations Before Income Taxes and Equity Income Three Months Ended March 31 (In thousands) 2020 2019 Segment operating income $ 21,237 $ 29,886 General Corporate expense (18,356 ) (10,062 ) Operating income from continuing operations 2,881 19,824 Interest income 193 533 Interest expense (12,649 ) (5,507 ) Unused debt commitment and amendment fees (488 ) — Defined benefit pension income (expense) 1,589 (1,338 ) Income (loss) from continuing operations before income taxes and equity income $ (8,474 ) $ 13,512 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 (In thousands) Harsco Environmental Segment Harsco Clean Earth Segment Harsco Rail Segment Corporate Consolidated Totals Primary Geographical Markets (a) (b) : North America $ 69,881 $ 78,812 $ 53,773 $ — $ 202,466 Western Europe 96,317 — 18,164 — 114,481 Latin America (c) 33,260 — 665 — 33,925 Asia-Pacific 21,996 — 5,868 — 27,864 Middle East and Africa 15,889 — — — 15,889 Eastern Europe 4,216 — — — 4,216 Total Revenues $ 241,559 $ 78,812 $ 78,470 $ — $ 398,841 Key Product and Service Groups (a) : Environmental services related to resource recovery for metals manufacturing and related logistical services $ 207,346 $ — $ — $ — $ 207,346 Applied products 30,262 — — — 30,262 Environmental systems for aluminum dross and scrap processing 3,951 — — — 3,951 Railway track maintenance equipment — — 42,615 — 42,615 After-market parts and services; safety and diagnostic technology — — 31,200 — 31,200 Railway contracting services — — 4,655 — 4,655 Waste processing and reuse solutions — 78,812 — — 78,812 Total Revenues $ 241,559 $ 78,812 $ 78,470 $ — $ 398,841 Three Months Ended March 31, 2019 (In thousands) Harsco Environmental Segment Harsco Clean Earth Segment Harsco Rail Segment Corporate Consolidated Totals Primary Geographical Markets (a) (b) : North America $ 73,349 $ — $ 50,365 $ — $ 123,714 Western Europe 98,221 — 10,013 — 108,234 Latin America (c) 36,991 — 591 — 37,582 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 $ — $ 68,590 $ — $ 329,902 Key Product and Service Groups (a) : Environmental services related to resource recovery for metals manufacturing and related logistical services $ 224,061 $ — $ — $ — $ 224,061 Applied products 30,390 — — — 30,390 Environmental systems for aluminum dross and scrap processing 6,861 — — — 6,861 Railway track maintenance equipment — — 33,608 — 33,608 After-market parts and services; safety and diagnostic technology — — 31,301 — 31,301 Railway contracting services — — 3,681 — 3,681 Waste processing and reuse solutions — — — — — Total Revenues $ 261,312 $ — $ 68,590 $ — $ 329,902 (a) The Company's acquisition of Clean Earth closed on June 28, 2019. The operating results of the former Harsco Industrial Segment have been reflected as discontinued operations in the Company's Condensed Consolidated Statement of Operations for all periods presented. See Note 3, Acquisitions and Dispositions, for additional details. (b) Revenues are attributed to individual countries based on the location of the facility generating the revenue. (c) Includes Mexico. |
Other (Income) Expenses, Net (T
Other (Income) Expenses, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) 2020 2019 Employee termination benefit costs $ 5,455 $ 2,519 Other costs to exit activities 176 1,155 Impaired asset write-downs 69 214 Contingent consideration adjustments — 369 Net gains (19 ) (2,271 ) Other 52 (243 ) Other expenses, net $ 5,733 $ 1,743 |
Components of Accumulated Oth_2
Components of Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 and 2020 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, 2018 $ (159,810 ) $ 1,389 $ (408,655 ) $ (31 ) $ (567,107 ) Adoption of new accounting standard — — (21,429 ) (a) — (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 ) 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, 2019 $ (143,340 ) $ (3,717 ) $ (440,562 ) $ (3 ) $ (587,622 ) Other comprehensive income (loss) before reclassifications (71,472 ) (b) (1,042 ) (c) 21,429 (b) (18 ) (51,103 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 12,906 (645 ) 8,840 — 21,101 Total other comprehensive income (loss) (58,566 ) (1,687 ) 30,269 (18 ) (30,002 ) Other comprehensive income attributable to noncontrolling interests 1,148 — — — 1,148 Other comprehensive income (loss) attributable to Harsco Corporation (57,418 ) (1,687 ) 30,269 (18 ) (28,854 ) Balance at March 31, 2020 $ (200,758 ) $ (5,404 ) $ (410,293 ) $ (21 ) $ (616,476 ) (a) Represents the adoption of the new accounting standard on January 1, 2019 related to stranded tax effects from the Tax Cuts and Jobs Act. (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 on the Company's Condensed Consolidated Statements of Operations March 31 March 31 Recognition of cumulative foreign currency translation adjustments: Gain on substantial liquidation of subsidiaries (d) $ — $ (2,271 ) Other expenses, net Loss on substantial liquidation of subsidiaries (d) 12,906 — Gain on sale of discontinued business Amortization of cash flow hedging instruments: Foreign currency exchange forward contracts $ (1,404 ) $ (32 ) Product revenues Cross-currency interest rate swaps 305 314 Interest expense Interest rate swaps 378 (301 ) Interest expense Total before tax (721 ) (19 ) Tax expense 76 (44 ) Total reclassification of cash flow hedging instruments, net of tax $ (645 ) $ (63 ) Amortization of defined benefit pension items (e) : Recognized losses $ 5,080 $ 5,058 Defined benefit pension income (expense) Recognized prior-service costs 107 66 Defined benefit pension income (expense) Pension liability transfer - discontinued business 5,363 — Gain on sale of discontinued business Total before tax 10,550 5,124 Tax benefit (1,710 ) (342 ) Total reclassification of defined benefit pension items, net of tax $ 8,840 $ 4,782 (d) No tax impact. (e) These accumulated other comprehensive loss components are included in the computation of net periodic pension costs. See Note 10, Employee Benefit Plans, for additional details. |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Acquisitions Narrative (Details) - USD ($) $ in Thousands | Jun. 28, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Total revenues | $ 398,841 | $ 329,902 | |
Additional interest expense | 12,649 | 5,507 | |
Purchase price | 4,157 | (680) | |
Harsco Clean Earth Segment | |||
Business Acquisition [Line Items] | |||
Percentage of interests acquired | 100.00% | ||
Enterprise valuation | $ 625,000 | ||
Cash consideration | 628,000 | ||
Estimated reimbursements | 8,000 | ||
Goodwill to be deductible for income tax purposes | $ 16,300 | ||
Direct acquisition costs | $ 100 | 600 | |
Harsco Clean Earth Segment | Acquisition-related Borrowings | |||
Business Acquisition [Line Items] | |||
Additional interest expense | $ 9,000 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Jun. 28, 2019 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 727,882 | $ 738,369 | |
Harsco Clean Earth Segment | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 3,600 | ||
Trade accounts receivable, net | 62,500 | ||
Other receivables | 2,100 | ||
Other current assets | 7,300 | ||
Property, plant and equipment | 77,200 | ||
Right-of-use assets | 25,800 | ||
Goodwill | 330,100 | ||
Intangible assets | 242,200 | $ 261,100 | |
Other assets | 1,200 | ||
Accounts payable | (23,100) | ||
Acquisition consideration payable | 0 | ||
Other current liabilities | (19,700) | ||
Net deferred taxes liabilities | (45,400) | ||
Operating lease liabilities | (19,500) | ||
Other liabilities | (8,600) | ||
Total identifiable net assets of Clean Earth | 635,700 | 635,900 | |
Harsco Clean Earth Segment | |||
Business Acquisition [Line Items] | |||
Goodwill | 330,101 | $ 330,230 | |
Measurement Period Adjustments | |||
Intangible assets | (18,900) | ||
Total identifiable intangible assets of Clean Earth | 200 | ||
Harsco Clean Earth Segment | Harsco Clean Earth Segment | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 42,800 | ||
Cash | (39,200) | ||
Trade accounts receivable, net | 63,700 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment | (1,200) | ||
Other receivables | 800 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustmen | 1,300 | ||
Other current assets | 8,700 | ||
Other Current Assets | (1,400) | ||
Property, plant and equipment | 75,600 | ||
Property, Plant, and Equipment | 1,600 | ||
Right-of-use assets | 14,400 | ||
Right of Use Asset | 11,400 | ||
Goodwill | 313,800 | ||
Intangible assets | 261,100 | ||
Other assets | 4,000 | ||
Other Assets | (2,800) | ||
Accounts payable | (23,000) | ||
Business Combination, Provisional Information Initial Accounting Incomplete, Adjustment, Accounts Payable | (100) | ||
Acquisition consideration payable | (39,200) | ||
Acquisition Consideration Payable | 39,200 | ||
Other current liabilities | (18,000) | ||
Other Current Liabilities | (1,700) | ||
Net deferred taxes liabilities | (51,200) | ||
Net deferred Taxes Liability | (5,800) | ||
Operating lease liabilities | (11,100) | ||
Operating lease liabilities | 8,400 | ||
Other liabilities | $ (6,500) | ||
Other Liabilities | 2,100 | ||
Measurement Period Adjustments | |||
Intangible assets | (18,900) | ||
Goodwill | $ 16,300 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Preliminary Valuation of Identifiable Intangible Assets and Amortization Periods (Details) - USD ($) $ in Millions | Jun. 28, 2019 | Mar. 31, 2020 |
Harsco Clean Earth Segment | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Preliminary Valuation | $ 261.1 | $ 242.2 |
Harsco Clean Earth Segment | Permits | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period | 18 years | |
Preliminary Valuation | $ 176.1 | 170.1 |
Harsco Clean Earth Segment | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period | 8 years | |
Preliminary Valuation | $ 33.4 | 20.5 |
Harsco Clean Earth Segment | Air rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period | 27 years | |
Preliminary Valuation | $ 25.6 | 25.6 |
Harsco Clean Earth Segment | Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period | 12 years | |
Preliminary Valuation | $ 26 | 26 |
Harsco Clean Earth Segment | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | (18.9) | |
Customer Relationships | (12.9) | |
Permits | (6) | |
Harsco Clean Earth Segment | Harsco Clean Earth Segment | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Preliminary Valuation | $ 261.1 | |
Intangible assets | $ (18.9) |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Acquisition [Line Items] | ||
Interest expense | $ 12,649 | $ 5,507 |
Gain on disposition of business | (18,462) | |
Harsco Clean Earth Segment | ||
Business Acquisition [Line Items] | ||
Pro forma revenues | 393,500 | |
Pro forma net income (including discontinued operations) | 15,600 | |
Gain on disposition of business | $ 417,500 | |
Acquisition-related Costs [Member] | Harsco Clean Earth Segment | ||
Business Acquisition [Line Items] | ||
Interest expense | $ 9,000 |
Acquisitions and Dispositions_5
Acquisitions and Dispositions - Dispositions Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 37,219 | $ 0 | |
Receivable with Imputed Interest, Face Amount | 40,000 | ||
Receivables, Fair Value Disclosure | $ 31,000 | $ 34,300 | |
Harsco Industrial IKG [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Selling price | 85,000 | ||
Disposal Group, Net Gain on Disposal, After Tax | 18,500 | ||
Disposal Group, Net Gain on Disposal | $ 9,000 | ||
Harsco Industrial | Discontinued Operations, Held-for-sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Corporate overhead expenses | $ 1,400 |
Acquisitions and Dispositions_6
Acquisitions and Dispositions - Financial Information Included in Net Income from Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Amounts directly attributable to the former Harsco Industrial Segment: | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 18,462 | $ 0 |
Harsco Industrial | Discontinued Operations, Held-for-sale | ||
Amounts directly attributable to the former Harsco Industrial Segment: | ||
Total revenues | 10,203 | 117,386 |
Cost of products sold | 8,082 | 87,695 |
Income from discontinued business | 218 | 14,192 |
Additional amounts allocated to the former Harsco Industrial Segment: | ||
Selling, general and administrative expenses | 1,266 | 0 |
Interest expense | $ 0 | $ 4,232 |
Acquisitions and Dispositions_7
Acquisitions and Dispositions - Condensed Consolidated Statements of Cash Flows (Details) - Harsco Industrial - Discontinued Operations, Held-for-sale - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Non-cash operating items | ||
Depreciation and amortization | $ 0 | $ 2,025 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | $ 106 | $ 2,175 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade accounts receivable | $ 333,725 | $ 323,502 | |
Receivable with Imputed Interest, Face Amount | $ 40,000 | ||
Note Receivable; Interest Rate; Stated percentage | 2.50% | ||
Greater than 12 months [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Trade accounts receivable | $ 3,700 | ||
Harsco Industrial IKG [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Selling price | $ 85,000 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | |||
Receivables, Fair Value Disclosure | $ 31,000 | $ 34,300 | |
Receivable with Imputed Interest, Net Amount | 34,569 | $ 0 | |
Trade accounts receivable | 333,725 | 323,502 | |
Less: Allowance for expected credit losses and doubtful accounts | 13,015 | 13,512 | |
Trade accounts receivable, net | 320,710 | 309,990 | |
Other receivables | $ 18,685 | $ 21,265 |
Accounts Receivable - Schedul_2
Accounts Receivable - Schedule of Changes in Provisions For Allowance For Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Receivables [Abstract] | ||
Increase (decrease) in provision for expected credit losses and doubtful accounts related to trade accounts receivable | $ 219 | $ (10) |
Accounts Receivable - Schedul_3
Accounts Receivable - Schedule of Fair Value of Notes Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | |||
Receivable with Imputed Interest, Net Amount | $ 34,569 | $ 0 | |
Receivables, Fair Value Disclosure | $ 31,000 | $ 34,300 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | ||||
Contract estimated forward loss provision for Harsco Rail Segment | $ 1,800 | $ 45,100 | ||
Loss provision that exceeds accumulated contract costs | $ 6,400 | |||
Revenues | 398,841 | $ 329,902 | ||
SBB [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 10,100 | $ 4,700 | ||
Contract 2 [Member] | SBB [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Percentage complete | 50.00% |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 13,138 | $ 14,550 |
Work-in-process | 10,795 | 13,088 |
Raw materials and purchased parts | 118,637 | 104,488 |
Stores and supplies | 25,320 | 24,865 |
Total inventories | $ 167,890 | $ 156,991 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment | ||
Gross property, plant and equipment | $ 1,704,360 | $ 1,806,603 |
Less: Accumulated depreciation | (1,171,011) | (1,244,817) |
Property, plant and equipment, net | 533,349 | 561,786 |
Land | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 29,811 | 30,409 |
Land improvements | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 17,822 | 19,155 |
Buildings and improvements | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 180,907 | 182,795 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 1,418,493 | 1,518,652 |
Construction in progress | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | $ 57,327 | $ 55,592 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating And Finance Leases, Excluding Short Term Leases, Weighted-Average Remaining Lease Term | 30 years 7 months 6 days | |
Operating And Finance Leases, Excluding Short Term Leases, Renewal Option | 10 years | |
Weighted average remaining lease term - Operating leases (in years) | 11 years 9 months 21 days | 11 years 6 months 25 days |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Finance leases: | ||
Amortization expense | $ 371 | $ 310 |
Interest on lease liabilities | 52 | 4 |
Operating leases | 4,284 | 3,693 |
Short-term leases | 6,703 | 4,571 |
Variable lease expense | 408 | 219 |
Sublease Income | (50) | (49) |
Total lease expense from continuing operations | $ 11,768 | $ 8,748 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Cash flows from operating activities - Operating leases | $ 3,789 | $ 3,552 | |
Finance Lease, Interest Payment on Liability | 324 | 363 | |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | $ 34,000 | 2,217 | 34,750 |
Finance leases | $ 1,234 | $ 373 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases: | ||
Right-of-use assets, net | $ 50,491 | $ 52,065 |
Current portion of operating lease liabilities | 12,421 | 12,544 |
Operating lease liabilities | 35,561 | 36,974 |
Finance Leases: | ||
Property, plant and equipment, net | 4,291 | 3,519 |
Current maturities of long-term debt | 1,346 | 1,237 |
Long-term debt | $ 2,984 | $ 2,218 |
Leases - Supplemental Additiona
Leases - Supplemental Additional Information (Details) | Mar. 31, 2020 | Dec. 31, 2019 |
Other information: | ||
Weighted average remaining lease term - Operating leases (in years) | 11 years 9 months 21 days | 11 years 6 months 25 days |
Weighted average remaining lease term - Finance leases (in years) | 3 years 10 months 20 days | 4 years 3 days |
Weighted average discount rate - Operating leases | 6.30% | 6.30% |
Weighted average discount rate - Finance leases | 4.30% | 4.20% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 11,458 |
Finance Lease, Liability, Payments, Due Next Twelve Months | 1,069 |
Operating Leases | |
2021 | 11,527 |
2022 | 7,615 |
2023 | 5,369 |
2024 | 3,210 |
After 2024 | 32,018 |
Total lease payments | 71,197 |
Less: Imputed interest | (23,215) |
Total | 47,982 |
Finance Leases | |
2021 | 1,198 |
2022 | 941 |
2023 | 748 |
2024 | 587 |
After 2024 | 43 |
Total lease payments | 4,586 |
Less: Imputed interest | (256) |
Total | $ 4,330 |
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, 2020USD ($) | |
Changes in carrying amounts of goodwill | |
Balance at December 31, 2019 | $ 738,369 |
Goodwill, Other Increase (Decrease) | 1,656 |
Foreign currency translation | (12,143) |
Balance at March 31, 2020 | 727,882 |
Harsco Environmental Segment | |
Changes in carrying amounts of goodwill | |
Balance at December 31, 2019 | 395,113 |
Goodwill, Other Increase (Decrease) | 1,785 |
Foreign currency translation | (12,143) |
Balance at March 31, 2020 | 384,755 |
Harsco Clean Earth Segment | |
Changes in carrying amounts of goodwill | |
Balance at December 31, 2019 | 330,230 |
Goodwill, Other Increase (Decrease) | (129) |
Foreign currency translation | 0 |
Balance at March 31, 2020 | 330,101 |
Harsco Rail Segment | |
Changes in carrying amounts of goodwill | |
Balance at December 31, 2019 | 13,026 |
Goodwill, Other Increase (Decrease) | 0 |
Foreign currency translation | 0 |
Balance at March 31, 2020 | $ 13,026 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Intangible Assets, by category | |||
Gross Carrying Amount | $ 411,845 | $ 412,657 | |
Accumulated Amortization | 117,125 | 113,575 | |
Amortization expense for intangible assets | 5,918 | $ 1,939 | |
Estimated amortization expense for next 5 years | |||
2020 | 24,300 | ||
2021 | 23,100 | ||
2022 | 22,400 | ||
2023 | 22,400 | ||
2024 | 22,400 | ||
Customer related | |||
Intangible Assets, by category | |||
Gross Carrying Amount | 143,092 | 143,996 | |
Accumulated Amortization | 99,280 | 99,327 | |
Permits | |||
Intangible Assets, by category | |||
Gross Carrying Amount | 170,448 | 170,322 | |
Accumulated Amortization | 7,045 | 4,694 | |
Patents | |||
Intangible Assets, by category | |||
Gross Carrying Amount | 192 | 249 | |
Accumulated Amortization | 132 | 168 | |
Technology related | |||
Intangible Assets, by category | |||
Gross Carrying Amount | 36,739 | 36,467 | |
Accumulated Amortization | 6,142 | 5,635 | |
Trade names | |||
Intangible Assets, by category | |||
Gross Carrying Amount | 31,558 | 31,719 | |
Accumulated Amortization | 2,801 | 2,182 | |
Air rights | |||
Intangible Assets, by category | |||
Gross Carrying Amount | 26,139 | 26,139 | |
Accumulated Amortization | 549 | 411 | |
Other | |||
Intangible Assets, by category | |||
Gross Carrying Amount | 3,677 | 3,765 | |
Accumulated Amortization | $ 1,176 | $ 1,158 |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Payment of issuance and amendment fees | $ 1,632 | $ 0 | |||
Debt Issuance Costs, Noncurrent, Net | 1,700 | ||||
Debt Instrument, Fee Amount | 1,600 | ||||
Other Nonoperating Expense | 488 | $ 0 | |||
Term Loan 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 280,000 | ||||
Forecast [Member] | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum net debt to consolidated adjusted earnings before interest, tax, depreciation and amortization ratio | 4 | 4.5 | 5 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined benefit plans: | ||
Multiemployer pension plans | $ 409 | $ 521 |
Defined contribution pension plans | 3,169 | 3,390 |
Pension Plan | U.S. Plans | ||
Defined benefit plans: | ||
Service cost | 0 | 10 |
Interest cost | 1,845 | 2,651 |
Expected return on plan assets | (2,842) | (2,593) |
Recognized prior service costs | 0 | 0 |
Recognized loss | 1,425 | 1,405 |
Defined benefit pension plans net periodic pension cost (benefit) | 428 | 1,473 |
Defined benefit pension plan | 2,027 | 1,479 |
Anticipated contributions to defined benefit pension plans during the remainder of the fiscal year | 6,200 | |
Pension Plan | International Plans | ||
Defined benefit plans: | ||
Service cost | 429 | 356 |
Interest cost | 4,395 | 5,664 |
Expected return on plan assets | (10,190) | (9,517) |
Recognized prior service costs | 107 | 66 |
Recognized loss | 3,655 | 3,653 |
Defined benefit pension plans net periodic pension cost (benefit) | (1,604) | 222 |
Defined benefit pension plan | 10,060 | $ 9,270 |
Anticipated contributions to defined benefit pension plans during the remainder of the fiscal year | $ 11,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ (682) | $ 1,219 |
Unrecognized income tax benefits including interest and penalties | 4,500 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 300 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jun. 04, 2018USD ($) | Aug. 31, 2005USD ($) | Mar. 31, 2020USD ($)claimdefendantcase | Apr. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 01, 2019USD ($) | Nov. 01, 2019BRL (R$) | Jun. 13, 2019USD ($) | Mar. 19, 2019USD ($) | Mar. 19, 2019BRL (R$) |
Commitments and Contingencies | ||||||||||
Reserve for loss contingencies | $ 7,000,000 | |||||||||
Penalties per day | $ 5,000 | R$ 25000 | $ 1,000 | R$ 5000 | ||||||
Penalties | 1,900,000 | 10,000,000 | ||||||||
Pennsylvania Department Of Environmental Protection, Processed Slag | Threatened Litigation | ||||||||||
Commitments and Contingencies | ||||||||||
Loss contingency reserves | $ 400,000 | |||||||||
Netherlands | ||||||||||
Commitments and Contingencies | ||||||||||
Damages sought - interest, penalties and fees | 500,000 | |||||||||
Allegheny County Health Department [Member] | ||||||||||
Commitments and Contingencies | ||||||||||
Penalties | $ 4,500 | |||||||||
Damages sought - interest, penalties and fees | 100,000 | |||||||||
Brazilian Tax Disputes - Jan 2004 through May 2005 | Sao Paulo State Revenue Authority | ||||||||||
Commitments and Contingencies | ||||||||||
Damages sought - interest, penalties and fees | 16,200,000 | |||||||||
Damages sought - principal | 1,200,000 | |||||||||
Loss contingency, reduced penalty | $ 1,000,000 | |||||||||
Amount of damages sought | $ 7,000,000 | |||||||||
Brazilian Tax Disputes - Jan 2002 through Dec 2003 | Sao Paulo State Revenue Authority | ||||||||||
Commitments and Contingencies | ||||||||||
Damages sought - interest, penalties and fees | $ 3,700,000 | |||||||||
Damages sought - principal | 1,200,000 | |||||||||
Loss contingency, reduced penalty | 1,200,000 | |||||||||
Amount of damages sought | 4,900,000 | |||||||||
Loss contingency, reduced penalty, including interest | $ 10,000,000 | |||||||||
Brazilian Labor Claims | ||||||||||
Commitments and Contingencies | ||||||||||
Loss contingency reserves | $ 5,000,000 | $ 6,500,000 | ||||||||
Other | ||||||||||
Commitments and Contingencies | ||||||||||
Approximate number of defendants that includes the company named in legal actions | defendant | 90 | |||||||||
Number of pending claims | claim | 17,138 | |||||||||
Number of claims dismissed to date by stipulation or summary judgment prior to trial | case | 28,245 | |||||||||
Other | Active or In Extremis docket | ||||||||||
Commitments and Contingencies | ||||||||||
Number of pending claims | claim | 35 | |||||||||
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 | 16,585 | |||||||||
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 | |||||||||
Other | New York State Supreme Court, Counties Excluding New York County | ||||||||||
Commitments and Contingencies | ||||||||||
Number of pending claims | case | 118 | |||||||||
Other | Courts Located In States Other Than New York | ||||||||||
Commitments and Contingencies | ||||||||||
Number of pending claims | case | 435 | |||||||||
CSN | ||||||||||
Commitments and Contingencies | ||||||||||
Penalties per day | $ 19,000 | R$ 100000 | $ 4,000 | R$ 20000 | ||||||
Bahrain Operations, Salt Cake Processing Site [Member] | ||||||||||
Commitments and Contingencies | ||||||||||
Minority interest | 35.00% |
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, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Income (loss) from continuing operations, net of tax | $ (8,782) | $ 10,474 |
Weighted-average shares outstanding - basic (in shares) | 78,761 | 79,907 |
Dilutive effect of stock-based compensation (in shares) | 0 | 1,746 |
Weighted-average shares outstanding - diluted (in shares) | 78,761 | 81,653 |
Earnings (loss) from continuing operations per common share, attributable to Harsco Corporation common stockholders: | ||
Basic (in dollars per share) | $ (0.11) | $ 0.13 |
Diluted (in dollars per share) | $ (0.11) | $ 0.13 |
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, 2020 | Mar. 31, 2019 | |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive securities | ||
Number of securities not included in computation of diluted earnings per share (in shares) | 749 | 0 |
Stock appreciation rights | ||
Antidilutive securities | ||
Number of securities not included in computation of diluted earnings per share (in shares) | 2,643 | 608 |
Performance share units | ||
Antidilutive securities | ||
Number of securities not included in computation of diluted earnings per share (in shares) | 940 | 233 |
Derivative Instruments, Hedgi_3
Derivative Instruments, Hedging Activities and Fair Value - Fair Value of Outstanding Derivative Contracts (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative contracts | ||
Asset derivatives | $ 9,011 | $ 2,985 |
Liability derivatives | 23,076 | 10,252 |
Foreign currency exchange forward contracts | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 9,011 | 2,985 |
Foreign currency exchange forward contracts | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 13,498 | 3,873 |
Interest rate swaps | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 3,543 | 2,098 |
Interest rate swaps | Other liabilities | ||
Derivative contracts | ||
Liability derivatives | 6,035 | 4,281 |
Fair Value of Derivatives Designated as Hedging Instruments | ||
Derivative contracts | ||
Asset derivatives | 4,113 | 2,039 |
Liability derivatives | 9,605 | 6,519 |
Fair Value of Derivatives Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 4,113 | 2,039 |
Fair Value of Derivatives Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 27 | 140 |
Fair Value of Derivatives Designated as Hedging Instruments | Interest rate swaps | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 3,543 | 2,098 |
Fair Value of Derivatives Designated as Hedging Instruments | Interest rate swaps | Other liabilities | ||
Derivative contracts | ||
Liability derivatives | 6,035 | 4,281 |
Fair Value of Derivatives Not Designated as Hedging Instruments | ||
Derivative contracts | ||
Asset derivatives | 4,898 | 946 |
Liability derivatives | 13,471 | 3,733 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 4,898 | 946 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 13,471 | 3,733 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 0 | 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 ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2019 | Feb. 28, 2018 | |
Foreign Currency Derivatives | ||||||
Liabilities | $ 1,588,300,000 | $ 1,577,808,000 | ||||
Pre-tax net gains (losses) on certain loans designated as hedges of net investments in foreign subsidiaries | (9,700,000) | $ 4,800,000 | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | (721,000) | |||||
Long-term debt | 739,200,000 | 827,200,000 | ||||
Foreign currency exchange forward contracts | ||||||
Foreign Currency Derivatives | ||||||
Derivative, Notional Amount | 432,000,000 | 496,300,000 | ||||
Term Loan Facility, Fixed-Rate | Term Loan | ||||||
Foreign Currency Derivatives | ||||||
Principal amount | $ 200,000,000 | $ 300,000,000 | ||||
LIBOR | Term Loan Facility, Fixed-Rate | Term Loan | ||||||
Foreign Currency Derivatives | ||||||
Variable rate basis spread | 2.45% | |||||
LIBOR | Forecast [Member] | Term Loan Facility, Fixed-Rate | Term Loan | ||||||
Foreign Currency Derivatives | ||||||
Variable rate basis spread | 3.12% | |||||
Floating-Rate To Fixed-Rate | ||||||
Foreign Currency Derivatives | ||||||
Converted debt | $ 100,000,000 | |||||
Reported Value Measurement | ||||||
Foreign Currency Derivatives | ||||||
Long-term debt | $ 810,300,000 | $ 795,000,000 |
Derivative Instruments, Hedgi_5
Derivative Instruments, Hedging Activities and Fair Value - Effect of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Effect of derivative instruments | ||
Amount Recognized in Other Comprehensive Income (“OCI”) on Derivatives | $ (1,483) | |
Amount Recognized in Other Comprehensive Income (“OCI”) on Derivatives | $ (4,073) | |
Amount Reclassified from Accumulated OCI into Income - Effective Portion or Equity | 721 | |
Amount Reclassified from Accumulated OCI into Income - Effective Portion or Equity | (19) | |
Foreign currency exchange forward contracts | ||
Effect of derivative instruments | ||
Amount Recognized in Other Comprehensive Income (“OCI”) on Derivatives | 2,037 | |
Amount Recognized in Other Comprehensive Income (“OCI”) on Derivatives | (712) | |
Foreign currency exchange forward contracts | Cost of services and products sold | ||
Effect of derivative instruments | ||
Amount Reclassified from Accumulated OCI into Income - Effective Portion or Equity | 1,404 | |
Amount Reclassified from Accumulated OCI into Income - Effective Portion or Equity | (32) | |
Interest rate swaps | Interest Expense | ||
Effect of derivative instruments | ||
Amount Reclassified from Accumulated OCI into Income - Effective Portion or Equity | (378) | |
Amount Reclassified from Accumulated OCI into Income - Effective Portion or Equity | (301) | |
Interest rate swaps | ||
Effect of derivative instruments | ||
Amount Recognized in Other Comprehensive Income (“OCI”) on Derivatives | (3,578) | |
Amount Recognized in Other Comprehensive Income (“OCI”) on Derivatives | (3,309) | |
Cross currency interest rate swaps | ||
Effect of derivative instruments | ||
Amount Recognized in Other Comprehensive Income (“OCI”) on Derivatives | 58 | |
Amount Recognized in Other Comprehensive Income (“OCI”) on Derivatives | (52) | |
Cross currency interest rate swaps | Interest Expense | ||
Effect of derivative instruments | ||
Amount Reclassified from Accumulated OCI into Income - Effective Portion or Equity | $ (305) | |
Amount Reclassified from Accumulated OCI into Income - Effective Portion or Equity | $ 314 |
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, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Product Revenues | $ 398,841 | $ 329,902 |
Interest Expense | (12,649) | (5,507) |
Income From Discontinued Businesses | (225) | 13,750 |
Amount of gain or reclassified from accumulated other comprehensive loss into income | 721 | |
Product Revenues | Interest rate swaps | ||
Derivative [Line Items] | ||
Amount of gain or reclassified from accumulated other comprehensive loss into income | 0 | |
Amount of gain or reclassified from accumulated other comprehensive loss into income | 0 | |
Product Revenues | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Amount of gain or reclassified from accumulated other comprehensive loss into income | 1,404 | |
Amount of gain or reclassified from accumulated other comprehensive loss into income | 32 | |
Amount excluded from effectiveness testing recognized in earnings | 183 | |
Amount excluded from effectiveness testing recognized in earnings | 78 | |
Product Revenues | Cross-currency interest rate swaps | ||
Derivative [Line Items] | ||
Amount of gain or reclassified from accumulated other comprehensive loss into income | 0 | |
Amount of gain or reclassified from accumulated other comprehensive loss into income | 0 | |
Interest Expense | Interest rate swaps | ||
Derivative [Line Items] | ||
Amount of gain or reclassified from accumulated other comprehensive loss into income | (378) | |
Amount of gain or reclassified from accumulated other comprehensive loss into income | 301 | |
Interest Expense | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Amount of gain or reclassified from accumulated other comprehensive loss into income | 0 | |
Amount of gain or reclassified from accumulated other comprehensive loss 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 of gain or reclassified from accumulated other comprehensive loss into income | (305) | |
Amount of gain or reclassified from accumulated other comprehensive loss into income | (314) | |
Cost of services and products sold | Foreign currency exchange forward contracts | ||
Derivative [Line Items] | ||
Amount of gain or reclassified from accumulated other comprehensive loss into income | 1,404 | |
Amount of Gain Recognized in Income on Derivatives | 5,542 | 2,323 |
Product Revenues | ||
Derivative [Line Items] | ||
Product Revenues | 107,502 | 100,382 |
Cost of services sold | 80,149 | 69,309 |
Products And Services, Service Revenue [Member] | ||
Derivative [Line Items] | ||
Product Revenues | 291,339 | 229,520 |
Cost of services sold | $ 236,319 | $ 181,871 |
Review of Operations by Segme_3
Review of Operations by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operations by segment | ||
Revenues | $ 398,841 | $ 329,902 |
Operating income from continuing operations | 2,881 | 19,824 |
Interest income | 193 | 533 |
Interest expense | (12,649) | (5,507) |
Unused debt commitment and amendment fees | (488) | 0 |
Defined benefit pension income (expense) | 1,589 | (1,338) |
Income (loss) from continuing operations before income taxes and equity income | (8,474) | 13,512 |
Depreciation and Amortization | 36,281 | 31,224 |
Capital Expenditures | 27,787 | 34,232 |
Operating Segments | ||
Operations by segment | ||
Operating income from continuing operations | 21,237 | 29,886 |
Corporate | ||
Operations by segment | ||
Operating income from continuing operations | (18,356) | (10,062) |
Depreciation and Amortization | 1,152 | 1,352 |
Capital Expenditures | 58 | 1,153 |
Harsco Environmental Segment | Operating Segments | ||
Operations by segment | ||
Revenues | 241,559 | 261,312 |
Operating income from continuing operations | 10,520 | 24,497 |
Depreciation and Amortization | 27,311 | 28,705 |
Capital Expenditures | 24,748 | 29,163 |
Harsco Clean Earth Segment | Operating Segments | ||
Operations by segment | ||
Revenues | 78,812 | 0 |
Operating income from continuing operations | 4,245 | 0 |
Depreciation and Amortization | 6,519 | 0 |
Capital Expenditures | 1,442 | 0 |
Harsco Rail Segment | Operating Segments | ||
Operations by segment | ||
Revenues | 78,470 | 68,590 |
Operating income from continuing operations | 6,472 | 5,389 |
Depreciation and Amortization | 1,299 | 1,167 |
Capital Expenditures | $ 1,539 | $ 3,916 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues by Primary Geographical Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 398,841 | $ 329,902 |
Waste Processing and Reuse Solutions [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 78,812 | 0 |
Environmental services related to resource recovery for metals manufacturing and related logistical services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 207,346 | 224,061 |
Applied Products [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 30,262 | 30,390 |
Aluminum Dross and Scrap Processing Systems [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3,951 | 6,861 |
Railway Track Maintenance Equipment [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 42,615 | 33,608 |
After-market Parts and Services; Safety and Diagnostic Technology [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 31,200 | 31,301 |
Railway Contracting Services [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4,655 | 3,681 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 202,466 | 123,714 |
Western Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 114,481 | 108,234 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 33,925 | 37,582 |
Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 27,864 | 41,759 |
Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 15,889 | 13,915 |
Eastern Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4,216 | 4,698 |
Operating Segments | Harsco Environmental Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 241,559 | 261,312 |
Operating Segments | Harsco Environmental Segment | Waste Processing and Reuse Solutions [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Environmental Segment | Environmental services related to resource recovery for metals manufacturing and related logistical services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 207,346 | 224,061 |
Operating Segments | Harsco Environmental Segment | Applied Products [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 30,262 | 30,390 |
Operating Segments | Harsco Environmental Segment | Aluminum Dross and Scrap Processing Systems [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3,951 | 6,861 |
Operating Segments | Harsco Environmental Segment | Railway Track Maintenance Equipment [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Environmental Segment | After-market Parts and Services; Safety and Diagnostic Technology [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Environmental Segment | Railway Contracting Services [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Environmental Segment | North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 69,881 | 73,349 |
Operating Segments | Harsco Environmental Segment | Western Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 96,317 | 98,221 |
Operating Segments | Harsco Environmental Segment | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 33,260 | 36,991 |
Operating Segments | Harsco Environmental Segment | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 21,996 | 34,138 |
Operating Segments | Harsco Environmental Segment | Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 15,889 | 13,915 |
Operating Segments | Harsco Environmental Segment | Eastern Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4,216 | 4,698 |
Operating Segments | Harsco Clean Earth Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 78,812 | 0 |
Operating Segments | Harsco Clean Earth Segment | Waste Processing and Reuse Solutions [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 78,812 | 0 |
Operating Segments | Harsco Clean Earth Segment | Environmental services related to resource recovery for metals manufacturing and related logistical services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Clean Earth Segment | Applied Products [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Clean Earth Segment | Aluminum Dross and Scrap Processing Systems [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Clean Earth Segment | Railway Track Maintenance Equipment [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Clean Earth Segment | After-market Parts and Services; Safety and Diagnostic Technology [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Clean Earth Segment | Railway Contracting Services [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Clean Earth Segment | North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 78,812 | 0 |
Operating Segments | Harsco Clean Earth Segment | Western Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Clean Earth Segment | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Clean Earth Segment | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Clean Earth Segment | Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Clean Earth Segment | Eastern Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Rail Segment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 78,470 | 68,590 |
Operating Segments | Harsco Rail Segment | Waste Processing and Reuse Solutions [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Rail Segment | Environmental services related to resource recovery for metals manufacturing and related logistical services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Rail Segment | Applied Products [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Rail Segment | Aluminum Dross and Scrap Processing Systems [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Rail Segment | Railway Track Maintenance Equipment [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 42,615 | 33,608 |
Operating Segments | Harsco Rail Segment | After-market Parts and Services; Safety and Diagnostic Technology [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 31,200 | 31,301 |
Operating Segments | Harsco Rail Segment | Railway Contracting Services [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4,655 | 3,681 |
Operating Segments | Harsco Rail Segment | North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 53,773 | 50,365 |
Operating Segments | Harsco Rail Segment | Western Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 18,164 | 10,013 |
Operating Segments | Harsco Rail Segment | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 665 | 591 |
Operating Segments | Harsco Rail Segment | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 5,868 | 7,621 |
Operating Segments | Harsco Rail Segment | Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Operating Segments | Harsco Rail Segment | Eastern Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Waste Processing and Reuse Solutions [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Environmental services related to resource recovery for metals manufacturing and related logistical services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Applied Products [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Aluminum Dross and Scrap Processing Systems [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Railway Track Maintenance Equipment [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | After-market Parts and Services; Safety and Diagnostic Technology [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | Railway Contracting Services [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Corporate | North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
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 - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Total contract assets | $ 50.5 | $ 31.2 | |
Total advances on contracts | 101.6 | $ 60.3 | |
Revenue recognized | $ 18 | $ 17 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Sep. 30, 2019 |
Harsco Metals and Minerals | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 98.1 | |
Harsco Metals and Minerals | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 36.1 | |
Period of expected timing of satisfaction | 1 year | |
Harsco Metals and Minerals | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 17.9 | |
Period of expected timing of satisfaction | 1 year | |
Harsco Metals and Minerals | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 15.7 | |
Period of expected timing of satisfaction | 1 year | |
Harsco Metals and Minerals | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 11.6 | |
Period of expected timing of satisfaction | 1 year | |
Harsco Metals and Minerals | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
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 [Line Items] | ||
Remaining performance obligation | 331.6 | |
Harsco Rail Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 111.3 | |
Period of expected timing of satisfaction | 1 year | |
Harsco Rail Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 94.6 | |
Period of expected timing of satisfaction | 1 year | |
Harsco Rail Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 65.4 | |
Period of expected timing of satisfaction | 1 year | |
Harsco Rail Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 49.8 | |
Period of expected timing of satisfaction | 1 year | |
Harsco Rail Segment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Period of expected timing of satisfaction | 1 year |
Revenue Recognition - Remaini_2
Revenue Recognition - Remaining Performance Obligation (2) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Harsco Metals and Minerals | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 98.1 |
Harsco Rail Segment | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 331.6 |
Other (Income) Expenses, Net (D
Other (Income) Expenses, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | ||
Employee termination benefit costs | $ 5,455 | $ 2,519 |
Net gains | (19) | (2,271) |
Other costs to exit activities | 176 | 1,155 |
Impaired asset write-downs | 69 | 214 |
Contingent consideration adjustments | 0 | 369 |
Other | 52 | (243) |
Other expenses, net | $ 5,733 | $ 1,743 |
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, 2020 | Mar. 31, 2019 | Jan. 01, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0 | ||
Components of Accumulated Other Comprehensive Income [Roll Forward] | |||
Balances | $ 789,659 | $ 313,376 | |
Other comprehensive income (loss) before reclassifications | (51,103) | 2,083 | |
Amounts reclassified from accumulated other comprehensive loss | 21,101 | 2,448 | |
Total other comprehensive income (loss) | (30,002) | 4,531 | |
Other comprehensive income attributable to noncontrolling interests | 1,148 | (420) | |
Other comprehensive income (loss) attributable to Harsco Corporation | (28,854) | 4,111 | |
Balances | 758,870 | 335,272 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Components of Accumulated Other Comprehensive Income [Roll Forward] | |||
Balances | (143,340) | (159,810) | |
Other comprehensive income (loss) before reclassifications | (71,472) | 11,725 | |
Amounts reclassified from accumulated other comprehensive loss | 12,906 | (2,271) | |
Total other comprehensive income (loss) | (58,566) | 9,454 | |
Other comprehensive income attributable to noncontrolling interests | 1,148 | (420) | |
Other comprehensive income (loss) attributable to Harsco Corporation | (57,418) | 9,034 | |
Balances | (200,758) | (150,776) | |
Effective Portion of Deriviatives Designated as Hedging Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 0 | ||
Components of Accumulated Other Comprehensive Income [Roll Forward] | |||
Balances | (3,717) | 1,389 | |
Other comprehensive income (loss) before reclassifications | (1,042) | (3,084) | |
Amounts reclassified from accumulated other comprehensive loss | (645) | (63) | |
Total other comprehensive income (loss) | (1,687) | (3,147) | |
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | |
Other comprehensive income (loss) attributable to Harsco Corporation | (1,687) | (3,147) | |
Balances | (5,404) | (1,758) | |
Cumulative Unrecognized Actuarial Losses on Pension Obligations | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | (21,429) | ||
Components of Accumulated Other Comprehensive Income [Roll Forward] | |||
Balances | (440,562) | (408,655) | |
Other comprehensive income (loss) before reclassifications | 21,429 | (6,573) | |
Amounts reclassified from accumulated other comprehensive loss | 8,840 | 4,782 | |
Total other comprehensive income (loss) | 30,269 | (1,791) | |
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | |
Other comprehensive income (loss) attributable to Harsco Corporation | 30,269 | (1,791) | |
Balances | (410,293) | (431,875) | |
Unrealized Loss on Marketable Securities | |||
Components of Accumulated Other Comprehensive Income [Roll Forward] | |||
Balances | (3) | (31) | |
Other comprehensive income (loss) before reclassifications | (18) | 15 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Total other comprehensive income (loss) | (18) | 15 | |
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | |
Other comprehensive income (loss) attributable to Harsco Corporation | (18) | 15 | |
Balances | (21) | (16) | |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ (21,429) | ||
Components of Accumulated Other Comprehensive Income [Roll Forward] | |||
Balances | (587,622) | (567,107) | |
Total other comprehensive income (loss) | (28,854) | 4,111 | |
Balances | $ (616,476) | $ (584,425) |
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, 2020 | Mar. 31, 2019 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Operating Income (Expense), Net | $ (5,733) | $ (1,743) |
Product revenues | 398,841 | 329,902 |
Interest expense | 12,649 | 5,507 |
Income from continuing operations before income taxes | (8,474) | 13,512 |
Income tax expense (benefit) | (682) | 1,219 |
Net income | 1,227 | 22,537 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Operating Income (Expense), Net | 0 | |
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 | 10,550 | 5,124 |
Income tax expense (benefit) | (1,710) | (342) |
Net income | 8,840 | 4,782 |
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 | (721) | (19) |
Income tax expense (benefit) | 76 | (44) |
Net income | (645) | (63) |
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] | ||
Other Operating Income (Expense), Net | (2,271) | |
Discontinued Operation, Gain From Disposal Of Discontinued Operation, Before Income Tax | 12,906 | 0 |
Product revenues | (1,404) | (32) |
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 | 305 | 314 |
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 | 378 | (301) |
Amount Reclassified from Accumulated Other Comprehensive Loss | Actuarial losses | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Defined benefit pension income (expense) | 5,080 | 5,058 |
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) | 5,363 | |
Amount Reclassified from Accumulated Other Comprehensive Loss | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Defined benefit pension income (expense) | $ 107 | $ 66 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Jun. 28, 2019USD ($) |
ESOL [Member] | |
Subsequent Event [Line Items] | |
Cash consideration | $ 462.5 |
Uncategorized Items - hsc-03312
Label | Element | Value |
Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ 21,429,000 |