Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-03970 | |
Entity Registrant Name | ENVIRI CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-1483991 | |
Entity Address, Address Line One | Two Logan Square100-120 North 18th Street, 17th Floor, | |
Entity Address, City or Town | Philadelphia, | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19103 | |
City Area Code | 267 | |
Local Phone Number | 857-8715 | |
Entity Information, Former Legal or Registered Name | Harsco Corporation | |
Title of 12(b) Security | Common stock, par value $1.25 per share | |
Trading Symbol | NVRI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 79,755,066 | |
Entity Central Index Key | 0000045876 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 85,484 | $ 81,332 |
Restricted cash | 3,882 | 3,762 |
Trade accounts receivable, net | 296,521 | 264,428 |
Other receivables | 41,941 | 25,379 |
Inventories | 84,644 | 81,375 |
Prepaid expenses | 22,142 | 30,583 |
Current portion of assets held-for-sale | 271,189 | 266,335 |
Other current assets | 19,121 | 14,541 |
Total current assets | 824,924 | 767,735 |
Property, plant and equipment, net | 649,662 | 656,875 |
Right-of-use assets, net | 98,662 | 101,253 |
Goodwill | 764,949 | 759,253 |
Intangible assets, net | 339,076 | 352,160 |
Deferred income tax assets | 14,804 | 17,489 |
Assets held-for-sale | 90,541 | 70,105 |
Other assets | 70,019 | 65,984 |
Total assets | 2,852,637 | 2,790,854 |
Current liabilities: | ||
Short-term borrowings | 3,853 | 7,751 |
Current maturities of long-term debt | 14,595 | 11,994 |
Accounts payable | 212,570 | 205,577 |
Accrued compensation | 51,973 | 43,595 |
Income taxes payable | 5,337 | 3,640 |
Current portion of operating lease liabilities | 26,140 | 25,521 |
Current portion of liabilities of assets held-for-sale | 153,199 | 159,004 |
Other current liabilities | 139,300 | 140,199 |
Total current liabilities | 606,967 | 597,281 |
Long-term debt | 1,382,140 | 1,336,995 |
Retirement plan liabilities | 48,505 | 46,601 |
Operating lease liabilities | 73,537 | 75,246 |
Liabilities of assets held-for-sale | 6,358 | 9,463 |
Environmental liabilities | 26,494 | 26,880 |
Deferred tax liabilities | 33,425 | 30,069 |
Other liabilities | 47,804 | 45,277 |
Total liabilities | 2,225,230 | 2,167,812 |
COMMITMENTS AND CONTINGENCIES | ||
HARSCO CORPORATION STOCKHOLDERS' EQUITY | ||
Common stock | 145,966 | 145,448 |
Additional paid-in capital | 232,463 | 225,759 |
Accumulated other comprehensive loss | (544,606) | (567,636) |
Retained earnings | 1,593,477 | 1,614,441 |
Treasury stock | (849,808) | (848,570) |
Total Enviri Corporation stockholders’ equity | 577,492 | 569,442 |
Noncontrolling interests | 49,915 | 53,600 |
Total equity | 627,407 | 623,042 |
Total liabilities and equity | $ 2,852,637 | $ 2,790,854 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues from continuing operations: | ||||
Revenues | $ 520,168 | $ 481,052 | $ 1,015,821 | $ 933,849 |
Costs and expenses from continuing operations: | ||||
Cost of sales | 406,627 | 403,199 | 807,315 | 780,218 |
Selling, general and administrative expenses | 76,850 | 67,935 | 148,785 | 137,088 |
Research and development expenses | 500 | 296 | 676 | 352 |
Goodwill impairment | 0 | 104,580 | 0 | 104,580 |
Property, plant and equipment impairment charge | 14,099 | 0 | 14,099 | 0 |
Other (income) expenses, net | (2,223) | 2,045 | (8,374) | 866 |
Total costs and expenses | 495,853 | 578,055 | 962,501 | 1,023,104 |
Operating income (loss) from continuing operations | 24,315 | (97,003) | 53,320 | (89,255) |
Interest income | 1,567 | 693 | 3,022 | 1,337 |
Interest expense | (25,724) | (16,692) | (50,052) | (31,784) |
Facility fees and debt-related income (expense) | (2,730) | 2,149 | (5,093) | 1,617 |
Defined benefit pension income (expense) | (5,407) | 2,247 | (10,742) | 4,657 |
Income (loss) from continuing operations before income taxes and equity income | (7,979) | (108,606) | (9,545) | (113,428) |
Income tax benefit (expense) from continuing operations | (10,319) | 3,115 | (17,242) | 1,894 |
Equity income (loss) of unconsolidated entities, net | (309) | (114) | (442) | (245) |
Income (loss) from continuing operations | (18,607) | (105,605) | (27,229) | (111,779) |
Discontinued operations: | ||||
Income (loss) from discontinued businesses | 7,556 | 1,879 | 8,175 | (37,218) |
Income tax benefit (expense) from discontinued businesses | (4,787) | (770) | (5,374) | 5,821 |
Income (loss) from discontinued operations, net of tax | 2,769 | 1,109 | 2,801 | (31,397) |
Net income (loss) | (15,838) | (104,496) | (24,428) | (143,176) |
Less: Net (income) loss attributable to noncontrolling interests | 4,399 | (1,095) | 3,464 | (2,254) |
Net income (loss) attributable to Enviri Corporation | (11,439) | (105,591) | (20,964) | (145,430) |
Amounts attributable to Enviri Corporation common stockholders: | ||||
Income (loss) from continuing operations, net of tax | (14,208) | (106,700) | (23,765) | (114,033) |
Income (loss) from discontinued operations, net of tax | 2,769 | 1,109 | 2,801 | (31,397) |
Net income (loss) attributable to Enviri Corporation | $ (11,439) | $ (105,591) | $ (20,964) | $ (145,430) |
Weighted-average shares of common stock outstanding (in shares) | 79,816 | 79,509 | 79,725 | 79,437 |
Basic earnings (loss) per common share attributable to Enviri Corporation common stockholders: | ||||
Continuing operations (in dollars per share) | $ (0.18) | $ (1.34) | $ (0.30) | $ (1.44) |
Discontinued operations (in dollars per share) | 0.03 | 0.01 | 0.04 | (0.40) |
Basic earnings (loss) per share attributable to Harsco Corporation common stockholders (in dollars per share) | $ (0.14) | $ (1.33) | $ (0.26) | $ (1.83) |
Diluted weighted-average shares of common stock outstanding (in shares) | 79,816 | 79,509 | 79,725 | 79,437 |
Diluted earnings (loss) per common share attributable to Enviri Corporation common stockholders: | ||||
Continuing operations (in dollars per share) | $ (0.18) | $ (1.34) | $ (0.30) | $ (1.44) |
Discontinued operations (in dollars per share) | 0.03 | 0.01 | 0.04 | (0.40) |
Diluted earnings (loss) per share attributable to Harsco Corporation common stockholders (in dollars per share) | $ (0.14) | $ (1.33) | $ (0.26) | $ (1.83) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (15,838) | $ (104,496) | $ (24,428) | $ (143,176) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of deferred income taxes | 10,589 | (58,646) | 23,035 | (61,493) |
Net gain (loss) on cash flow hedging instruments, net of deferred income taxes | 4,434 | 720 | 1,874 | 1,860 |
Pension liability adjustments, net of deferred income taxes | (627) | 28,810 | (3,362) | 42,528 |
Unrealized gain (loss) on marketable securities, net of deferred income taxes | 5 | (10) | 6 | (13) |
Total other comprehensive income (loss) | 14,401 | (29,126) | 21,553 | (17,118) |
Total comprehensive income (loss) | (1,437) | (133,622) | (2,875) | (160,294) |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 6,234 | 1,808 | 4,941 | 1,131 |
Comprehensive income (loss) attributable to Enviri Corporation | $ 4,797 | $ (131,814) | $ 2,066 | $ (159,163) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, deferred income taxes | $ 1,139 | $ (4,616) | $ 2,611 | $ (6,454) |
Net gain (loss) on cash flow hedging instruments, deferred income taxes | (1,529) | (301) | (682) | (631) |
Pension liability adjustments, deferred income taxes | (292) | (312) | (710) | (664) |
Unrealized gain (loss) on marketable securities, deferred income taxes | $ (2) | $ 4 | $ (2) | $ 4 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (24,428) | $ (143,176) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 67,496 | 66,067 |
Amortization | 16,032 | 17,067 |
Deferred income tax (benefit) expense | 7,622 | (10,396) |
Equity (income) loss of unconsolidated entities, net | 442 | 245 |
Dividends from unconsolidated entities | 0 | 526 |
(Gain) loss on early extinguishment of debt | 0 | (2,254) |
Goodwill impairment | 0 | 104,580 |
Property, plant and equipment impairment charge | 14,099 | 0 |
Other, net | 4,146 | 1,020 |
Changes in assets and liabilities, net of acquisitions and dispositions of businesses: | ||
Accounts receivable | (56,383) | 87,607 |
Income tax refunds receivable, reimbursable to seller | 0 | 7,687 |
Inventories | (7,952) | (8,435) |
Contract assets | (3,535) | 7,836 |
Right-of-use assets | 16,211 | 14,383 |
Accounts payable | 12,960 | 18,847 |
Accrued interest payable | (192) | (740) |
Accrued compensation | 9,194 | (5,884) |
Advances on contracts | (12,978) | (13,626) |
Operating lease liabilities | (14,790) | (14,095) |
Retirement plan liabilities, net | (5,468) | (21,587) |
Other assets and liabilities | 5,714 | 12,067 |
Net cash (used) provided by operating activities | 28,190 | 117,739 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (66,341) | (61,791) |
Proceeds from sales of assets | 1,439 | 6,591 |
Expenditures for intangible assets | (427) | (100) |
Proceeds from notes receivable | 11,238 | 8,605 |
Net proceeds (payments) from settlement of foreign currency forward exchange contracts | (2,408) | 4,999 |
Payments for settlements of interest rate swaps | 0 | (2,123) |
Other investing activities, net | 84 | 153 |
Net cash used by investing activities | (56,415) | (43,666) |
Cash flows from financing activities: | ||
Short-term borrowings, net | 601 | (31) |
Current maturities and long-term debt: | ||
Additions | 123,996 | 104,961 |
Reductions | (90,727) | (152,861) |
Contributions from noncontrolling interests | 1,654 | 0 |
Sale of noncontrolling interests | 0 | 1,901 |
Stock-based compensation - Employee taxes paid | (1,238) | (1,698) |
Payment of contingent consideration | 0 | (6,915) |
Net cash (used) provided by financing activities | 34,286 | (54,643) |
Effect of exchange rate changes on cash and cash equivalents, including restricted cash | (1,789) | (5,751) |
Net increase in cash and cash equivalents, including restricted cash | 4,272 | 13,679 |
Cash and cash equivalents, including restricted cash, at beginning of period | 85,094 | 87,128 |
Cash and cash equivalents, including restricted cash, at end of period | 89,366 | 100,807 |
Supplementary cash flow information: | ||
Change in accrual for purchases of property, plant and equipment included in accounts payable | $ (3,170) | $ 6,836 |
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 |
Beginning balance at Dec. 31, 2021 | $ 805,770 | $ 144,883 | $ (846,622) | $ 215,528 | $ 1,794,510 | $ (560,139) | $ 57,610 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | (38,680) | (39,839) | 1,159 | ||||
Total other comprehensive income | 12,008 | 12,490 | (482) | ||||
Vesting of restricted stock units and other stock grants, net | (1,632) | 378 | (1,632) | (378) | |||
Amortization of unearned portion of stock-based compensation, net of forfeitures | 3,629 | 3,629 | |||||
Ending balance at Mar. 31, 2022 | 781,095 | 145,261 | (848,254) | 218,779 | 1,754,671 | (547,649) | 58,287 |
Beginning balance at Dec. 31, 2021 | 805,770 | 144,883 | (846,622) | 215,528 | 1,794,510 | (560,139) | 57,610 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | (143,176) | ||||||
Total other comprehensive income | (17,118) | ||||||
Ending balance at Jun. 30, 2022 | 651,703 | 145,319 | (848,320) | 221,117 | 1,649,080 | (573,872) | 58,379 |
Beginning balance at Mar. 31, 2022 | 781,095 | 145,261 | (848,254) | 218,779 | 1,754,671 | (547,649) | 58,287 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | (104,496) | (105,591) | 1,095 | ||||
Total other comprehensive income | (29,126) | (26,223) | (2,903) | ||||
Amortization of unearned portion of stock-based compensation, net of forfeitures | 2,396 | 2,396 | |||||
Contributions from noncontrolling interests | 1,900 | 1,900 | |||||
Stock appreciation rights exercised, net | (66) | 29 | (66) | (29) | |||
Vesting of performance share units, net | 0 | 29 | 0 | (29) | |||
Ending balance at Jun. 30, 2022 | 651,703 | 145,319 | (848,320) | 221,117 | 1,649,080 | (573,872) | 58,379 |
Beginning balance at Dec. 31, 2022 | 623,042 | 145,448 | (848,570) | 225,759 | 1,614,441 | (567,636) | 53,600 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | (8,590) | (9,525) | 935 | ||||
Total other comprehensive income | 7,152 | 6,794 | 358 | ||||
Sale of subsidiary shares to noncontrolling interest | 398 | (398) | |||||
Vesting of restricted stock units and other stock grants, net | (1,108) | 395 | (1,108) | (395) | |||
Amortization of unearned portion of stock-based compensation, net of forfeitures | 3,456 | 3,456 | |||||
Ending balance at Mar. 31, 2023 | 623,952 | 145,843 | (849,678) | 229,218 | 1,604,916 | (560,842) | 54,495 |
Beginning balance at Dec. 31, 2022 | 623,042 | 145,448 | (848,570) | 225,759 | 1,614,441 | (567,636) | 53,600 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | (24,428) | ||||||
Total other comprehensive income | 21,553 | ||||||
Ending balance at Jun. 30, 2023 | 627,407 | 145,966 | (849,808) | 232,463 | 1,593,477 | (544,606) | 49,915 |
Beginning balance at Mar. 31, 2023 | 623,952 | 145,843 | (849,678) | 229,218 | 1,604,916 | (560,842) | 54,495 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | (15,838) | (11,439) | (4,399) | ||||
Total other comprehensive income | 14,401 | 16,236 | (1,835) | ||||
Vesting of restricted stock units and other stock grants, net | (130) | 123 | (130) | (123) | |||
Amortization of unearned portion of stock-based compensation, net of forfeitures | 3,368 | 3,368 | |||||
Contributions from noncontrolling interests | 1,654 | 1,654 | |||||
Ending balance at Jun. 30, 2023 | $ 627,407 | $ 145,966 | $ (849,808) | $ 232,463 | $ 1,593,477 | $ (544,606) | $ 49,915 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Total other comprehensive income, deferred income taxes | $ (684) | $ 1,901 | $ (5,225) | $ (2,520) |
Vesting of restricted stock units and other stock grants (in shares) | 82,415 | 177,574 | 23,224 | 176,253 |
Stock appreciation rights exercised (in shares) | 16,671 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Effective June 5, 2023, the corporate name of the Company was changed from Harsco Corporation to Enviri Corporation. The Company has prepared these unaudited condensed consolidated financial statements in accordance with 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 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, 2022 Condensed Consolidated Balance Sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2022 audited consolidated financial statements. These 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, 2022. 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 these unaudited condensed consolidated financial statements. Liquidity The Company’s cash flow forecasts, combined with existing cash and cash equivalents and borrowings available under the Senior Secured Credit Facilities, indicate sufficient liquidity to fund the Company’s operations for at least the next twelve months. As such, the Company’s unaudited consolidated financial statements have been prepared on the basis that it will continue as a going concern for a period extending beyond twelve months from the date the unaudited consolidated financial statements are issued. This assessment includes the expected ability to meet required financial covenants and the continued ability to draw down on the Senior Secured Credit Facilities (see Note 9). Reclassifications Certain reclassifications have been made to prior year amounts to conform with current year classifications. These reclassifications did not have a material impact on the Company's condensed consolidated financial statements, including the notes thereto. |
Recently Adopted and Recently I
Recently Adopted and Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2023 | |
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 2023: On January 1, 2023, the Company adopted changes issued by the FASB that clarify that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with accounting standards governing revenue from contracts with customers. The adoption of these changes did not have an immediate impact on the Company's consolidated financial statements, but will be applied prospectively to future business combinations. On January 1, 2023, the Company adopted changes issued by the FASB that require a buyer in a supplier finance program, also referred to as reverse factoring, payables finance, or structured payables arrangements, to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude, by disclosing qualitative and quantitative information about the program. The adoption of these changes did not have a material impact on the Company's condensed consolidated financial statements, including the notes thereto. |
Dispositions
Dispositions | 6 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | Discontinued Operations Harsco Rail Segment The Company is in the process of selling its Rail business with a sale expected to occur in 2023. The intention to sell the business was first announced in the fourth quarter of 2021. The sales process was delayed in 2022 due to certain macroeconomic conditions, including rising interest rates. The former Harsco Rail Segment has historically been a separate reportable segment with primary operations in the United States, Europe and Asia Pacific. The former Harsco Rail Segment's balance sheet positions as of June 30, 2023 and December 31, 2022 are presented as Assets held-for-sale and Liabilities of assets held-for-sale in the Condensed Consolidated Balance Sheets and are summarized as follows: (in thousands) June 30 December 31 Trade accounts receivable, net $ 52,368 $ 41,049 Other receivables 5,209 4,037 Inventories 109,242 105,256 Current portion of contract assets 68,167 84,848 Other current assets 36,008 30,950 Property, plant and equipment, net 44,392 41,004 Right-of-use assets, net 6,412 5,635 Goodwill 13,026 13,026 Intangible assets, net 2,616 2,746 Deferred income tax assets 2,701 6,887 Noncurrent portion of contract assets 20,420 — Other assets 974 807 Total Rail assets included in Assets held-for-sale $ 361,535 $ 336,245 Accounts payable $ 52,561 $ 49,083 Accrued compensation 2,534 1,211 Current portion of operating lease liabilities 2,925 2,635 Current portion of advances on contracts 34,089 45,037 Other current liabilities 61,090 61,039 Operating lease liabilities 3,472 3,121 Deferred tax liabilities 2,368 5,480 Other liabilities 518 861 Total Rail liabilities included in Liabilities of assets held-for-sale $ 159,557 $ 168,467 The results of the former Harsco Rail Segment are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for the six months ended June 30, 2023, and 2022. Certain key selected financial information included in Income (loss) from discontinued operations, net of tax, for the former Harsco Rail Segment is as follows: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Amounts directly attributable to the former Harsco Rail Segment: Service revenues $ 10,765 $ 7,488 $ 18,485 $ 14,198 Product revenues (a) 78,083 64,364 135,415 109,477 Cost of services sold 7,290 4,229 12,916 8,524 Cost of products sold (a) 60,762 52,548 106,505 125,094 Income (loss) from discontinued businesses 9,315 5,163 12,066 (30,732) Additional amounts allocated to the former Harsco Rail Segment: Selling, general and administrative expenses (b) $ 594 $ 1,862 $ 1,071 $ 3,511 (a) Changes in product revenues and cost of products sold for 2023 compared with 2022 reflect, in part, estimated forward loss provisions and adjustments on certain long-term contracts, as discussed below. (b) The Company includes costs to sell the Rail business in the caption Income (loss) from discontinued businesses on the Condensed Consolidated Statements of Operations. The Company has retained corporate overhead expenses previously allocated to the former Harsco Rail Segment of $1.1 million and $2.1 million for each of the three and six months ended June 30, 2023 and 2022, respectively, as part of Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations. The Company's former Harsco Rail Segment is currently manufacturing highly-engineered equipment under large long-term fixed-price contracts with Network Rail, Deutsche Bahn, and SBB. The Company has previously recognized estimated forward loss provisions related to these contracts as additional costs in building the machines and continued supply chain related delays were encountered. The Company will continue to update its estimates to complete these contracts, which will include the effect of negotiations with the customer regarding price increases, change orders and extensions to delivery schedules. In the second quarter of 2023, the Company reversed a portion of its estimated forward loss provision adjustment in the amount of $23.6 million related to its Network Rail contract. The favorable adjustment was the result of an amendment to the contract with Network Rail in the second quarter which extended the delivery schedule for the machines and reduced the estimate of liquidated damages. The reduction in liquidated damages was recorded as an increase to revenue and contract assets. Partially offsetting this were higher estimated material, engineering and labor costs due to additional experience gained during the manufacturing process. For the three and six months ended June 30, 2022, the Company recorded forward loss provisions of $0.3 million and $24.5 million, respectively, for these contracts, principally for additional estimated contractual liquidated damages which were recorded as a reduction of revenue. For the Deutsche Bahn contract, in the second quarter of 2023, the Company recorded an additional forward loss provision of $8.4 million. The additional loss provision was due to increased costs related to the critical European-based supplier that had filed for bankruptcy in the second quarter of 2022 and ceased operations during the second quarter of 2023, as well as an increase in estimated component costs and engineering costs. For the six months ended June 30, 2022, the Company recorded a forward loss provision totaling $7.4 million due principally to estimated contractual penalties that would be triggered by supplier delays and thus recorded as a reduction of revenue. For the SBB contract, in the second quarter of 2023 the Company recorded an additional forward loss provision of $6.1 million. The additional forward loss provision was due to increased estimates for material, engineering and commissioning costs for the remaining vehicles. For the six months ended June 30, 2022, the Company recorded a forward loss provision totaling $3.5 million due to additional supply chain delays and cost overruns. The estimated forward loss provisions represent the Company's best estimate based on currently available information. It is possible that the Company's overall estimate of liquidated damages, penalties and costs to complete these contracts may change, which would result in an additional estimated forward loss provision at such time. As of June 30, 2023, the contracts with Network Rail, Deutsche Bahn and the second contract with SBB are 51%, 38% and 83% complete, respectively. The first contract with SBB has been completed. The following is selected financial information included on the Condensed Consolidated Statements of Cash Flows attributable to the former Harsco Rail Segment: Six Months Ended June 30 (In thousands) 2023 2022 Cash flows from investing activities Purchases of property, plant and equipment $ 1,236 $ 1,031 |
Accounts Receivable and Note Re
Accounts Receivable and Note Receivable | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable and Note Receivable | Accounts Receivable and Note Receivable Accounts receivable consist of the following: (In thousands) June 30 December 31 Trade accounts receivable $ 305,106 $ 272,775 Less: Allowance for expected credit losses (8,585) (8,347) Trade accounts receivable, net $ 296,521 $ 264,428 Other receivables (a) $ 41,941 $ 25,379 (a) Other receivables include employee receivables, insurance receivable, tax claims and refunds and other miscellaneous items not included in Trade accounts receivable, net. The provision for expected credit losses related to trade accounts receivable was as follows: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Provision for expected credit losses related to trade accounts receivable $ (113) $ (268) $ 394 $ 57 At June 30, 2023, $13.6 million of the Company's trade accounts receivable were past due by twelve months or more, with $4.0 million of this amount reserved. There has been a recent increase in aged receivables for certain international customers within the HE segment. Collection of the remaining balance is still ultimately expected. One of HE’s steel mill customers in the Middle East has idled operations and has missed contractual progress payments. The Company has approximately $5.5 million of net receivables with this customer. The customer has indicated it plans to restart operations. Accordingly, the Company believes this amount is fully collectible; however, if there is an adverse change in the Company's view on collectability, there could be a charge against income in future periods. Accounts Receivable Securitization Facility In June 2022, the Company and its SPE entered into an AR Facility with PNC Bank, National Association ("PNC") to accelerate cash flows from trade accounts receivable. The AR Facility has a three-year term. The maximum purchase commitment by PNC is $150.0 million. The total outstanding balance of trade receivables that have been sold and derecognized by the SPE is $150.0 million and $145.0 million as of June 30, 2023 and December 31, 2022, respectively. The SPE owned $79.0 million and $69.7 million of trade receivables as of June 30, 2023 and December 31, 2022, respectively, which is included in the caption Trade accounts receivable, net, on the Condensed Consolidated Balance Sheets. See Note 9, Debt and Credit Agreements, for AR Facility expenses incurred. Proceeds received from the AR Facility were as follows and are included in cash from operating activities in the Condensed Consolidated Statements of Cash Flows: Six Months Ended June 30 (In millions) 2023 2022 Upon execution in June 2022 $ — $ 120.0 Additional proceeds 5.0 — Total received $ 5.0 $ 120.0 Factoring Arrangements The Company maintains factoring arrangements with a financial institution to sell certain accounts receivable that are also accounted for as a sale of financial assets. The following table reflects balances for net amounts sold and program capacities for the arrangements: (In millions) June 30 December 31 Net amounts sold under factoring arrangements $ 15.2 $ 17.3 Program capacities 32.2 31.4 Note Receivable In January 2020, the Company sold IKG for $85.0 million including cash and a note receivable, subject to post-closing adjustments. The note receivable from the buyer has a face value of $40.0 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 classified as noncurrent as of June 30, 2023 and December 31, 2022, and is included in the caption Other assets on the Condensed Consolidated Balance Sheet. During the three and six months ended June 30, 2023, the Company received a payment of $11.2 million related to excess cash flow. (In millions) June 30 December 31 Note receivable, at amortized cost $ 13.4 $ 23.9 Note receivable, fair value 15.1 23.8 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: (In thousands) June 30 December 31 Finished goods $ 14,411 $ 11,809 Work-in-process 1,107 2,030 Raw materials and purchased parts 26,927 27,946 Stores and supplies 42,199 39,590 Total inventories $ 84,644 $ 81,375 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment ("PP&E") consist of the following: (In thousands) June 30 December 31 Land $ 72,090 $ 72,020 Land improvements 16,907 16,750 Buildings and improvements 208,666 217,926 Machinery and equipment 1,566,383 1,513,238 Uncompleted construction 78,420 84,472 Gross property, plant and equipment 1,942,466 1,904,406 Less: Accumulated depreciation (1,292,804) (1,247,531) Property, plant and equipment, net $ 649,662 $ 656,875 In the third quarter of 2020, a customer of HE in China ceased steel making operations at its steel mill site in order to relocate the operations to a new site, as a result of a government mandate to improve environmental conditions of the area, which led to HE having idled equipment on-site. The Company continues to provide services to the same customer at the new site. The customer had entered into an agreement with the government where it will receive compensation for the losses the customer has incurred as a result of the forced shutdown. The Company has continued discussions with the customer regarding compensation, including pursuing other avenues of recovery and seeking relief directly from the local government. Based on further discussions with the customer during the quarter ended June 30, 2023, the Company determined that recovery was no longer probable and recorded an impairment charge of $14.1 million related to the now abandoned equipment at the previous site, which is included in the caption Property, plant and equipment impairment charge in the Condensed Consolidated Statements of Operations. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense were as follows: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Finance leases: Amortization expense $ 2,022 $ 979 $ 3,563 $ 1,957 Interest on lease liabilities 578 182 932 365 Operating leases 9,127 8,432 17,681 16,501 Variable and short-term lease expense 13,602 11,986 25,688 25,329 Sublease income (1) (1) (3) (3) Total lease expense from continuing operations $ 25,328 $ 21,578 $ 47,861 $ 44,149 |
Leases | Leases The components of lease expense were as follows: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Finance leases: Amortization expense $ 2,022 $ 979 $ 3,563 $ 1,957 Interest on lease liabilities 578 182 932 365 Operating leases 9,127 8,432 17,681 16,501 Variable and short-term lease expense 13,602 11,986 25,688 25,329 Sublease income (1) (1) (3) (3) Total lease expense from continuing operations $ 25,328 $ 21,578 $ 47,861 $ 44,149 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets 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 its annual goodwill impairment test as of October 1 and monitors for triggering events on an ongoing basis. During the three months ended June 30, 2022, there was a triggering event due to lower near-term earnings expectations due to the impacts of inflation. As a result, a goodwill impairment charge of $104.6 million was recorded for the Clean Earth reporting unit. This charge had no impact on the Company's cash flows or compliance with debt covenants. During the six months ended June 30, 2023, the Company determined that there were no events or indicators present that would indicate that it was more-likely-than-not that its reporting units' fair values were less than their carrying amounts, which would require a further interim impairment analysis. However, a continued economic downturn, including continued cost inflation and labor shortages, as well as rising interest rates, could impact the Company's future projected cash flows and discount rates used to estimate fair value, which could result in an impairment charge to any of the Company's reporting units in a future period. |
Debt and Credit Agreements
Debt and Credit Agreements | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements Long-term debt consists of the following: (In thousands) June 30 December 31 Senior Secured Credit Facilities: New Term Loan $ 490,000 $ 492,500 Revolving Credit Facility 410,000 370,000 5.75% Senior Notes 475,000 475,000 Other financing payable (including finance leases) in varying amounts 35,323 26,661 Total debt obligations 1,410,323 1,364,161 Less: deferred financing costs (13,588) (15,172) Total debt obligations, net of deferred financing costs 1,396,735 1,348,989 Less: current maturities of long-term debt (14,595) (11,994) Long-term debt $ 1,382,140 $ 1,336,995 The Senior Secured Credit Facilities contain a consolidated net debt to Consolidated Adjusted EBITDA ratio covenant, which is not to exceed 5.50x for the quarter ended June 30, 2023 and through and including the quarter ending December 31, 2023 and then decreasing quarterly until reaching 4.00x on December 31, 2024. The total net leverage ratio covenant applicable to the third quarter of 2024 and earlier is subject to a 0.50x decrease upon divestiture of Rail. The Company's required coverage of consolidated interest charges is set at a minimum of 2.75x through the end of 2024 (subject to an increase to 3.00x upon closing of the divestiture of Rail). At June 30, 2023, the Company was in compliance with its debt covenants under the Senior Secured Credit Facilities, with a total net debt to Consolidated Adjusted EBITDA ratio of 4.63x and a total interest coverage ratio of 3.01x. The Company believes it will continue to maintain compliance with these covenants based on its current outlook. However, the Company's estimates of compliance with these covenants could change in the future with a continued deterioration in economic conditions, higher than forecasted interest rate increases, the timing of working capital including the collection of receivables or an inability to successfully execute its plans by quarter to realize increased pricing and to implement cost reduction initiatives that substantially mitigate the impacts of inflation and other factors adversely impacting its realized operating margins. Facility Fees and Debt-Related Income (Expense) The components of the Condensed Consolidated Statements of Operations caption Facility fees and debt-related income (expense) were as follows: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Gain on extinguishment of debt $ — $ 2,254 $ — $ 2,254 Unused debt commitment and amendment fees — (6) (12) (538) Securitization and factoring fees (2,730) (99) (5,081) (99) Facility fees and debt-related income (expense) $ (2,730) $ 2,149 $ (5,093) $ 1,617 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Three Months Ended June 30 Defined Benefit Pension Plan Net Periodic Pension Cost (Benefit) U.S. Plans International Plans (In thousands) 2023 2022 2023 2022 Service costs $ — $ — $ 308 $ 417 Interest costs 2,543 1,429 7,538 4,128 Expected return on plan assets (1,750) (2,698) (7,784) (9,720) Recognized prior service costs — — 115 113 Recognized actuarial losses 1,150 1,183 3,579 3,313 Defined benefit pension plan net periodic pension cost (benefit) $ 1,943 $ (86) $ 3,756 $ (1,749) Six Months Ended June 30 Defined Benefit Pension Plans Net Periodic Pension Cost (Benefit) U.S. Plans International Plans (In thousands) 2023 2022 2023 2022 Service costs $ — $ — $ 615 $ 849 Interest costs 5,086 2,858 14,952 8,522 Expected return on plan assets (3,500) (5,397) (15,441) (20,104) Recognized prior service costs — — 229 233 Recognized actuarial losses 2,301 2,366 7,098 6,857 Defined benefit pension plans net periodic pension cost (benefit) $ 3,887 $ (173) $ 7,453 $ (3,643) Cash contributions to U.S. and international defined benefit pension plans totaled $0.8 million and $15.3 million for the six months ended June 30, 2023, respectively. The Company's estimate of expected cash contributions to be paid during the remainder of 2023 for the U.S. and international defined benefit pension plans is $1.0 million and $8.8 million, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense related to continuing operations for the three and six months ended June 30, 2023 was $10.3 million and $17.2 million, respectively. Income tax benefit related to continuing operations for the three and six months ended June 30, 2022 was $3.1 million and $1.9 million, respectively. The change in the income tax expense for the three and six months ended June 30, 2023 compared with the income tax benefit for the three and six months ended June 30, 2022 is the result of improved business performance in the CE segment, the gain on the relocation of an HE site, the increased disallowed interest expense in the U.S. resulting from higher interest expense on the Company's Senior Secured Credit Facilities, a valuation allowance for a deferred tax asset in a certain foreign entity of $3.7 million, as well as the tax benefit on a portion of the CE goodwill impairment in 2022 not recurring in 2023. The Company has historically calculated its quarterly tax provision based on its best estimate of the full year tax rate applicable to the quarter. For the three and six months ended June 30, 2023, due to the insignificant amount of pre-tax book loss relative to the size of permanent book-tax differences and a varying net income/(loss) pattern projected for the year, the Company’s tax provision estimate was determined using an actual year-to-date method. In the prior year, the estimate was based on the forecasted full year rate. The reserve for uncertain tax positions on June 30, 2023 was |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
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. 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. The following table summarizes information related to the location and undiscounted amount of the Company's environmental liabilities: (In thousands) June 30 December 31 Current portion of environmental liabilities (a) $ 7,135 $ 7,120 Long-term environmental liabilities 26,494 26,880 Total environmental liabilities $ 33,629 $ 34,000 (a) The current portion of environmental liabilities is included in the caption Other current liabilities on the Condensed Consolidated Balance Sheets. Legal Proceedings In the ordinary course of business, the Company is a defendant or party to various claims and lawsuits, including those discussed below. Unless stated otherwise below, the Company has not determined a loss to be probable or estimable for these legal proceedings. On March 28, 2018, the United States Environmental Protection Agency (the “EPA”) conducted an inspection of ESOL’s off-site waste management facility in Detroit, MI. On November 23, 2021, the EPA proposed a civil penalty of $390,092 as part of a proposed Administrative Consent Order for alleged improper air emissions at the site. The allegations in the proposed Administrative Consent Order and civil penalty relate exclusively to the period prior the Company’s purchase of the ESOL business. The Company and EPA have reached an agreement, in principle, to settle the EPA's claim, and a consent order is expected to be finalized during the three months ended September 30, 2023. The agreement, in principle, includes a payment of $270,000 from the Company, which was recorded as a liability during the quarter ended June 30, 2023. It is possible that part of this obligation may be satisfied through a supplemental environmental project agreed upon by the parties. While it is the Company's position that any loss related to this issue will be recoverable under indemnity rights under the ESOL purchase agreement and representations and warranties insurance policies purchased by the Company, there can be no assurance that the Company's position will ultimately prevail. On January 27, 2020, the EPA issued a Notice of Potential Liability to the Company, along with several other companies, concerning the Newtown Creek Superfund Site located in Kings and Queens Counties in New York. The Notice alleges certain facilities formerly owned or operated by subsidiaries of the Company may have resulted in the discharge of hazardous substances into Newtown Creek or its Dutch Kills tributary. The site has been subject to CERCLA response activities since approximately 2011. The U.S. EPA expects to propose a sitewide cleanup plan no sooner than 2024 and announced in July 2021 that it would defer its decision on a potential early action response for the lower two miles of the Creek until the sitewide studies are completed. The Company is one of approximately twenty (20) Potentially Responsible Parties ("PRPs") that have received notices, though it is believed other PRPs may exist. The Company vigorously contests the allegations of the Notice and currently does not believe that this matter will have a material effect on the Company’s financial position or results from operations. On June 25 and 26, 2018, the DTSC conducted a compliance enforcement inspection of ESOL’s facility in Rancho Cordova, California, which was then owned by Stericycle, Inc. On February 14, 2020, the DTSC filed an action in the Superior Court for the State of California, Sacramento Division, alleging violations of California’s Hazardous Waste Control Law and the facility’s hazardous waste permit arising from the inspection. On August 27, 2020, the DTSC issued a Notice of Denial of Hazardous Waste Facility Permit Application, denying the renewal of the facility's hazardous waste permit. The Company has exhausted its legal challenges to the denial of the Hazardous Waste facility permit, and the hazardous waste facility is in the process of closing. The Company continues to utilize the site for non-hazardous waste and is evaluating additional potential alternate uses for the site. The DTSC investigation and compliance issues leading to the compliance tier assignment were ongoing well before the Company's acquisition of the ESOL business, and the Company was aware of the investigation and many of the issues raised in the investigation at the time of the purchase. Accordingly, the Company is indemnified for certain fines and other costs and expenses associated with this matter by Stericycle, Inc. The Company has not accrued any amounts in respect of these alleged violations and cannot estimate the reasonably possible loss or the range of reasonably possible losses that it may incur. The Company has had ongoing meetings with the SCE over processing salt cakes, a processing byproduct, stored at the Al Hafeerah site. The Company’s Bahrain operations that produced the salt cakes has ceased operations. An Environmental Impact Assessment and Technical Feasibility Study for facilities to process the salt cakes was approved by the SCE during the first quarter of 2018. Commissioning of the facilities was completed during the third quarter of 2021 and the processing of the salt cakes has commenced. The Company's current reserve of $5.7 million at June 30, 2023 continues to represent 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 which 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 thousand per day) and CSN 20,000 Brazilian reais per day (or approximately $4 thousand 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 thousand per day) and raising the fines assessed to CSN to 100,000 Brazilian reais per day (or approximately $21 thousand per day). The Court also assessed an additional joint fine of 10,000,000 Brazilian reais (or approximately $2.1 million) against CSN and the Company. The Company is appealing the fines and the underlying injunction. Both the Company and CSN continue to have discussions with the Prosecution Offices and governmental authorities on the injunction and the possible resolution of the underlying case. Beginning on March 25, 2022, the Courts entered a series of orders suspending the litigation proceedings as well as the accrual of interest and penalties while the parties discuss a possible resolution of the matter. 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 alleged violations of the Company’s environmental permit at the site, which restricts the release of any visible dust emissions. On January 12, 2022, the Administrative Supreme Court upheld the Company’s challenge of these enforcement actions as they relate to the slag tipping area of the site. As a result, all fines asserted against the Company to date have been invalidated and all fines paid to date have been reimbursed. This order is not appealable. On or about October 14, 2021, the Company received a subpoena and two indictments on this matter before the Amsterdam District Court in the Netherlands. The Amsterdam Public Prosecutor’s Office issued the two indictments against the Company, alleging violations in connection with dust releases and/or events alleged to have occurred in 2018 through May 2020 at the site. The action cites provisions which permit fines for the alleged infractions and seeks €100,000 in fines with a smaller amount held in abeyance. On February 2, 2022, the prosecutor announced that they would further investigate residents’ claims related to this matter. On February 25, 2022, the Amsterdam District Court ruled that the Company was liable for only one alleged violation and that this alleged violation was unintentional. The court issued a fine of €5,000, to be held in abeyance. Both the Company and the Public Prosecutor’s Office have appealed this ruling. The Company is vigorously contesting all allegations against it and is also working with its customer to ensure the control of emissions. The Company has contractual indemnity rights from its customer that it believes will substantially cover any fines or penalties. On November 5, 2020, a worker suffered a fatal injury at a site owned by the Company’s customer, Gerdau Ameristeel US, Inc., in Midlothian, TX. Although the Company was not directly involved in the accident, the worker was employed by a sub-contractor of a sub-contractor of the Company. The worker’s family filed suit in the 125th Judicial District Court of Harris County, TX against multiple parties, including the Company, seeking monetary damages. On May 11, 2023, the parties completed a formal settlement agreement, settling the claims brought by the worker's family. The Company paid its insurance deductible of $5.0 million and has recorded an indemnification receivable from its customer for the recovery of certain losses based upon the contractual indemnity rights. There can be no assurances that the Company's position will ultimately prevail; however, any financial statement impact is not expected to be material. On March 22, 2022, the EPA issued a Notice of Intent to File an Administrative Complaint (NOI) alleging violations of the federal Emergency Planning and Community Right-to-Know Act at the Company’s facilities in Tacoma, WA and Kent, WA. The NOI relates exclusively or almost exclusively to the period when Stericycle owned and operated the sites. The NOI proposes a penalty of $3,000,000. The Company is currently reviewing the veracity of the allegations and the corresponding proposed penalty amount and has recorded a liability of $600,000 as its best estimate to resolve this matter. While it is the Company’s position that it has recourse for some or all liabilities, if any, that arise from this matter under the ESOL purchase agreement and representations and warranties insurance policies purchased by the Company, there can be no assurances that the Company’s position will ultimately prevail. On March 21, 2022, the Company received a draft penalty matrix from the PA DEP concerning alleged reporting, monitoring and related issues at the Company’s Hatfield, PA site prior to the time the Company acquired the site from Stericycle, Inc. The draft penalty matrix proposed a penalty of $1,000,000. On June 29, 2022, the PA DEP issued a draft Consent Assessment of Civil Penalty ("CACP") related to the alleged issues at the site. The Company and PA DEP entered into a CACP on November 9, 2022, settling the PA DEP's claims for $239,500, which was recorded as a liability. DEA Investigation Prior to the Company’s acquisition of ESOL, Stericycle, Inc. notified the Company that the DEA had served an administrative subpoena on Stericycle, Inc. and executed a search warrant at a facility in Rancho Cordova, California and an administrative inspection warrant at a facility in Indianapolis, Indiana. The Company has determined that the DEA and the DTSC have launched investigations involving, at least in part, the ESOL business of collecting, transporting, and destroying controlled substances from retail customers that transferred from Stericycle, Inc. to the Company. The Company is cooperating with these inquiries, which relate primarily to the period before the Company owned the ESOL business. Since the acquisition of the ESOL business, the Company has performed a vigorous review of ESOL’s compliance program related to controlled substances and has made material changes to the manner in which controlled substances are transported from retail customers to DEA-registered facilities for destruction. Pursuant to an agreement with Stericyle, the Company has contractual recourse for any material loss the Company has determined is reasonably possible. The Company has not accrued any amounts in respect of these investigations and does not believe a loss is reasonably possible. 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 ICMS, services and social security tax disputes. The largest proportion of the assessed amounts relate to ICMS claims filed by 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 June 30, 2023 the principal amount of the tax assessment from the SPRA with regard to this case is approximately $1.3 million, with penalty, interest and fees assessed to date increasing such amount by an additional $18.7 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 $1.3 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 $7.6 million. All such amounts include the effect of foreign currency translation. 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 aggregate amount assessed by the tax authorities in August 2005 was $5.2 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 $4.0 million. On December 6, 2018, the administrative tribunal reduced the applicable penalties to $0.9 million. After calculating the interest accrued on the current penalty, the Company estimates that the current overall liability for this case to be approximately $5.8 million. All such amounts include the effect of foreign currency translation. The Company has appealed to the judicial phase at the Third Trial Court of the District of Cubatão, State of São Paulo. On October 14, 2022, the District Court issued a decision holding that the Company is not liable for the taxes at issue. The SPRA appealed this decision on December 28, 2022 and this appeal is pending review by the Appellate Court of the State of São Paulo. 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. On December 30, 2020, the Company received an assessment from the municipal authority in Ipatinga, Brazil alleging $2.2 million in unpaid service taxes from the period 2015 to 2020. After calculating the interest and penalties accrued, the Company estimates that the current overall potential liability for this case to be approximately $3.7 million. On January 18, 2021, the Company filed a challenge to the assessment. Due to the multiple defenses that are available, the Company does not believe a loss is probable. 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. 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 June 30, 2023, there were 17,259 pending asbestos personal injury actions filed against the Company. Of those actions, 16,602 were filed in the New York Supreme Court (New York County), 115 were filed in other New York State Supreme Court Counties and 542 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 June 30, 2023, 16,549 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 53 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 June 30, 2023, the Company has obtained dismissal in approximately 28,432 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 reserves 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. Self-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 has been determined to be 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, 2022 for additional information on Accrued insurance and loss reserves. |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Shares | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Shares | Reconciliation of Basic and Diluted Shares Three Months Ended Six Months Ended June 30 June 30 (In thousands, except per share amounts) 2023 2022 2023 2022 Income (loss) from continuing operations attributable to Enviri Corporation common stockholders $ (14,208) $ (106,700) $ (23,765) $ (114,033) Weighted-average shares outstanding: Weighted-average shares outstanding - basic 79,816 79,509 79,725 79,437 Dilutive effect of stock-based compensation — — — — Weighted-average shares outstanding - diluted 79,816 79,509 79,725 79,437 Earnings (loss) from continuing operations per common share, attributable to Enviri Corporation common stockholders: Basic $ (0.18) $ (1.34) $ (0.30) $ (1.44) Diluted $ (0.18) $ (1.34) $ (0.30) $ (1.44) The following average outstanding stock-based compensation units were not included in the computation of diluted earnings per share because the effect was either antidilutive or the market conditions for the performance share units were not met: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Restricted stock units 1,023 797 1,012 811 Stock appreciation rights 2,429 2,193 2,451 2,422 Performance share units 1,411 1,128 1,402 1,177 |
Derivative Instruments, Hedging
Derivative Instruments, Hedging Activities and Fair Value | 6 Months Ended |
Jun. 30, 2023 | |
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 and interest rate swaps 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 risks, 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 and interest rate swaps 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 June 30, 2023 Asset derivatives (Level 2): Foreign currency exchange forward contracts Other current assets $ 34 $ 4,295 $ 4,329 Interest rate swaps Other current assets 3,110 — 3,110 Total $ 3,144 $ 4,295 $ 7,439 Liability derivatives (Level 2): Foreign currency exchange forward contracts Other current liabilities $ 753 $ 2,964 $ 3,717 Interest rate swaps Other liabilities 710 — 710 Total $ 1,463 $ 2,964 $ 4,427 December 31, 2022 Asset derivatives (Level 2): Foreign currency exchange forward contracts Other current assets $ 1,042 $ 2,154 $ 3,196 Total $ 1,042 $ 2,154 $ 3,196 Liability derivatives (Level 2): Foreign currency exchange forward contracts Other current liabilities $ 577 $ 4,796 $ 5,373 Total $ 577 $ 4,796 $ 5,373 All of the Company's derivatives are recorded on the Condensed Consolidated Balance Sheets at gross amounts and do not offset. All of the Company's interest rate swaps and certain foreign currency exchange forward contracts are transacted under 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, if offset, would have resulted in a net asset of $0.5 million and a net liability of $0.1 million at June 30, 2023 and December 31, 2022, respectively. The effect of derivative instruments on the Company's Condensed Consolidated Statements of Comprehensive Income (Loss) was as follows: Derivatives Designated as Hedging Instruments Amount Recognized in Amount Reclassified from Three Months Ended Three Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Foreign currency exchange forward contracts $ (438) $ 957 $ 866 $ (998) Interest rate swaps 6,152 — (617) 1,061 $ 5,714 $ 957 $ 249 $ 63 Amount Recognized in Amount Reclassified from Six Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Foreign currency exchange forward contracts $ (1,121) $ 1,966 $ 1,277 $ (1,586) Interest rate swaps 3,265 — (865) 2,111 $ 2,144 $ 1,966 $ 412 $ 525 The location and amount of gain (loss) recognized on the Company's Condensed Consolidated Statements of Operations was as follows: Three Months Ended June 30 2023 2022 (In thousands) Interest Expense Income (Loss) from Discontinued Businesses Interest Expense Income (Loss) from Discontinued Businesses Total amounts in the Condensed Consolidated Statement of Operations in which the effects of derivatives designated as hedging instruments are recorded $ (25,724) $ 7,556 $ (16,692) $ 1,879 Interest rate swaps: Gain or (loss) reclassified from AOCI into income 617 — (1,061) — Amount recognized in earnings due to ineffectiveness — — 720 — Foreign exchange contracts: Gain or (loss) reclassified from AOCI into income — (866) — 998 Six Months Ended June 30 2023 2022 (In thousands) Interest Expense Income (Loss) from Discontinued Businesses Interest Expense Income (Loss) from Discontinued Businesses Total amounts in the Condensed Consolidated Statement of Operations in which the effects of derivatives designated as hedging instruments are recorded $ (50,052) $ 8,175 $ (31,784) $ (37,218) Interest rate swaps: Gain or (loss) reclassified from AOCI into income 865 — (2,111) — Amount recognized in earnings due to ineffectiveness — — 1,611 — Foreign exchange contracts: Gain or (loss) reclassified from AOCI into income — (1,277) — 1,586 Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives (a) Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Foreign currency exchange forward contracts Cost of services and products sold $ 4,862 $ 18,234 $ 1,565 $ 22,072 (a) These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures. Foreign Currency Exchange Forward Contracts The Company conducts business in multiple currencies and, accordingly, is subject to the inherent risks associated with foreign exchange rate movements. Foreign currency-denominated assets and liabilities are translated into U.S. dollars at the exchange rates existing at the respective consolidated 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 AOCI, a separate component of equity, and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions. The ineffective portion of all hedges, if any, is recognized currently in earnings. The recognized gains and losses offset amounts recognized in cost of services and products sold principally as a result of intercompany or third-party foreign currency exposures. At June 30, 2023 and December 31, 2022, the notional amounts of foreign currency exchange forward contracts were $588.6 million and $573.8 million, respectively. These contracts are primarily denominated in British Pound Sterling and Euros and mature through 2025. In addition to foreign currency exchange forward contracts, the Company designates certain loans as hedges of net investments in international subsidiaries. The Company recorded pre-tax net gains of $1.1 million and $1.5 million for the three months and six months ended ended June 30, 2023 and pre-tax net losses of $0.6 million and $1.2 million for the three months and six months ended ended June 30, 2022, respectively, in AOCI. 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 AOCI and are reclassified into income as interest payments are made. The Company had a series of interest rate swaps that matured in 2022 and had the effect of converting $200.0 million of the Term Loan Facility from floating-rate to fixed-rate. The fixed rates provided by the swaps replaced the adjusted LIBOR rate in the interest calculation to 3.12% for 2022. In the first quarter of 2023, the Company entered into a new series of interest rate swaps with a scheduled maturity of December 2025. The swaps have the effect of converting $300.0 million of the New Term Loan from a floating interest rate to a fixed interest rate and are classified as cash flow hedges. The fixed rates provided by these swaps, ranging from 4.17% to 4.21%, replace the adjusted SOFR rate in the interest calculation. Fair Value of Other Financial Instruments |
Review of Operations by Segment
Review of Operations by Segment | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Review of Operations by Segment | Review of Operations by Segment Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Revenues From Continuing Operations Harsco Environmental $ 289,593 $ 277,599 $ 562,782 $ 539,650 Clean Earth 230,575 203,453 453,039 394,199 Total Revenues From Continuing Operations $ 520,168 $ 481,052 $ 1,015,821 $ 933,849 Operating Income (Loss) From Continuing Operations Harsco Environmental $ 12,733 $ 23,547 $ 35,018 $ 41,814 Clean Earth 23,034 (111,668) 39,505 (112,965) Corporate (11,452) (8,882) (21,203) (18,104) Total Operating Income (Loss) From Continuing Operations $ 24,315 $ (97,003) $ 53,320 $ (89,255) Depreciation Harsco Environmental $ 28,354 $ 27,467 $ 55,914 $ 55,539 Clean Earth 5,547 4,536 10,474 9,637 Corporate 556 460 1,108 891 Total Depreciation $ 34,457 $ 32,463 $ 67,496 $ 66,067 Amortization Harsco Environmental $ 1,008 $ 1,714 $ 2,007 $ 3,542 Clean Earth 6,113 6,131 12,142 12,206 Corporate (a) 946 636 1,883 1,319 Total Amortization $ 8,067 $ 8,481 $ 16,032 $ 17,067 Capital Expenditures Harsco Environmental $ 38,540 $ 23,585 $ 55,091 $ 48,375 Clean Earth 4,974 3,550 9,804 10,246 Corporate 110 1,172 210 2,138 Total Capital Expenditures $ 43,624 $ 28,307 $ 65,105 $ 60,759 (a) Amortization expense on Corporate relates to the amortization of deferred financing costs. Reconciliation of Segment Operating Income to Income (Loss) From Continuing Operations Before Income Taxes and Equity Income Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Segment operating income (loss) $ 35,767 $ (88,121) $ 74,523 $ (71,151) General Corporate expense (11,452) (8,882) (21,203) (18,104) Operating income (loss) from continuing operations 24,315 (97,003) 53,320 (89,255) Interest income 1,567 693 3,022 1,337 Interest expense (25,724) (16,692) (50,052) (31,784) Facility fees and debt-related income (expense) (2,730) 2,149 (5,093) 1,617 Defined benefit pension income (5,407) 2,247 (10,742) 4,657 Income (loss) from continuing operations before income taxes and equity income $ (7,979) $ (108,606) $ (9,545) $ (113,428) |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | RevenuesThe Company recognizes revenues to depict the transfer of promised services and products to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services and products. Revenues from continuing operations include service revenues from HE and CE and product revenues from HE. Revenue from the Rail business is included in Income (loss) from discontinued businesses. A summary of the Company's revenues by primary geographical markets as well as by key product and service groups is as follows: Three Months Ended June 30, 2023 (In thousands) Harsco Environmental Segment Clean Earth Consolidated Totals Primary Geographical Markets (a) : North America $ 81,616 $ 230,575 $ 312,191 Western Europe 107,318 — 107,318 Latin America (b) 42,180 — 42,180 Asia-Pacific 32,339 — 32,339 Middle East and Africa 21,117 — 21,117 Eastern Europe 5,023 — 5,023 Total Revenues $ 289,593 $ 230,575 $ 520,168 Key Product and Service Groups: Environmental services related to resource recovery for metals manufacturing and related logistical services $ 242,638 $ — $ 242,638 Ecoproducts 40,504 — 40,504 Environmental systems for aluminum dross and scrap processing 6,451 — 6,451 Hazardous waste processing solutions — 197,506 197,506 Soil and dredged materials processing and reuse solutions — 33,069 33,069 Total Revenues $ 289,593 $ 230,575 $ 520,168 Three Months Ended June 30, 2022 (In thousands) Harsco Environmental Segment Clean Earth Consolidated Totals Primary Geographical Markets (a) : North America $ 80,709 $ 203,453 $ 284,162 Western Europe 99,591 — 99,591 Latin America (b) 39,202 — 39,202 Asia-Pacific 31,950 — 31,950 Middle East and Africa 20,762 — 20,762 Eastern Europe 5,385 — 5,385 Total Revenues $ 277,599 $ 203,453 $ 481,052 Key Product and Service Groups: Environmental services related to resource recovery for metals manufacturing and related logistical services $ 236,165 $ — $ 236,165 Ecoproducts 38,083 — 38,083 Environmental systems for aluminum dross and scrap processing 3,351 — 3,351 Hazardous waste processing solutions — 170,817 170,817 Soil and dredged materials processing and reuse solutions — 32,636 32,636 Total Revenues $ 277,599 $ 203,453 $ 481,052 Six Months Ended June 30, 2023 (In thousands) Harsco Environmental Segment Clean Earth Consolidated Totals Primary Geographical Markets (a) : North America $ 160,089 $ 453,039 $ 613,128 Western Europe 208,704 — 208,704 Latin America (b) 83,135 — 83,135 Asia-Pacific 61,300 — 61,300 Middle East and Africa 39,522 — 39,522 Eastern Europe 10,032 — 10,032 Total Revenues $ 562,782 $ 453,039 $ 1,015,821 Six Months Ended June 30, 2023 (In thousands) Harsco Environmental Segment Clean Earth Consolidated Totals Key Product and Service Groups: Environmental services related to resource recovery for metals manufacturing and related logistical services $ 471,999 $ — $ 471,999 Ecoproducts 78,906 — 78,906 Environmental systems for aluminum dross and scrap processing 11,877 — 11,877 Hazardous waste processing solutions — 383,618 383,618 Soil and dredged materials processing and reuse solutions — 69,421 69,421 Total Revenues $ 562,782 $ 453,039 $ 1,015,821 Six Months Ended June 30, 2022 (In thousands) Harsco Environmental Segment Clean Earth Consolidated Totals Primary Geographical Markets (a) : North America $ 151,788 $ 394,199 $ 545,987 Western Europe 201,670 — 201,670 Latin America (b) 75,007 — 75,007 Asia-Pacific 60,018 — 60,018 Middle East and Africa 40,648 — 40,648 Eastern Europe 10,519 — 10,519 Total Revenues $ 539,650 $ 394,199 $ 933,849 Key Product and Service Groups: Environmental services related to resource recovery for metals manufacturing and related logistical services $ 463,854 $ — $ 463,854 Ecoproducts 70,048 — 70,048 Environmental systems for aluminum dross and scrap processing 5,748 — 5,748 Hazardous waste processing solutions — 329,824 329,824 Soil and dredged materials processing and reuse solutions — 64,375 64,375 Total Revenues $ 539,650 $ 394,199 $ 933,849 (a) Revenues are attributed to individual countries based on the location of the facility generating the revenue. (b) Includes Mexico. The Company may receive payments in advance of earning revenue (advances on contracts), which are included in Other current liabilities and Other liabilities on the Condensed Consolidated Balance Sheets. The Company may recognize revenue in advance of being able to contractually invoice the customer (contract assets), which is included in Other current assets and Other assets on the Condensed Consolidated Balance Sheets. Contract assets are transferred to Trade accounts receivable, net, when the right to payment becomes unconditional. Contract assets and advances on contracts are reported as a net position, on a contract-by-contract basis, at the end of each reporting period. The Company had contract assets totaling $5.3 million at both June 30, 2023 and December 31, 2022. The Company had advances on contracts totaling $5.2 million and $6.8 million at June 30, 2023 and December 31, 2022, respectively. During the three and six months ended June 30, 2023, the Company recognized $2.2 million and $5.5 million, respectively, of revenue related to amounts previously included in advances on contracts. During the three and six months ended June 30, 2022, the Company recognized $7.7 million and $10.5 million, respectively, of revenue related to amounts previously included in advances on contracts. |
Other (Income) Expenses, Net
Other (Income) Expenses, Net | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expenses, Net | Other (Income) Expenses, Net The major components of this Condensed Consolidated Statements of Operations caption were as follows: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Employee termination benefit costs $ 120 $ 605 $ 654 $ 297 Other costs (income) for exit activities (a) (2,353) 477 (8,560) 1,058 Impaired asset write-downs — 296 — 355 Net gains — (92) (230) (1,904) Other 10 759 (238) 1,060 Other (income) expenses, net $ (2,223) $ 2,045 $ (8,374) $ 866 (a) Includes a $3.0 million and $9.8 million net gain recognized related to a lease modification during the three and six months ended June 30, 2023, respectively, that resulted in lease incentive for the Company to relocate an HE site prior to the end of the expected lease term. |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Components of Accumulated Other Comprehensive Loss AOCI is included on the Condensed Consolidated Statements of Stockholders' Equity. The components of AOCI, net of the effect of income taxes, and activity for the six months ended June 30, 2022 and 2023 were as follows: Components of AOCI, 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, 2021 $ (134,889) $ (3,024) $ (422,248) $ 22 $ (560,139) OCI before reclassifications (61,493) (a) 1,692 (b) 33,697 (a) (13) (26,117) Amounts reclassified from AOCI, net of tax — 168 8,831 — 8,999 Total OCI (61,493) 1,860 42,528 (13) (17,118) Less: OCI attributable to noncontrolling interests 3,385 — — — 3,385 OCI attributable to Enviri Corporation (58,108) 1,860 42,528 (13) (13,733) Balance at June 30, 2022 $ (192,997) $ (1,164) $ (379,720) $ 9 $ (573,872) Components of AOCI, 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, 2022 $ (213,104) $ 157 $ (354,699) $ 10 $ (567,636) OCI before reclassifications 23,035 (a) 1,554 (b) (12,405) (a) 6 12,190 Amounts reclassified from AOCI, net of tax — 320 9,043 — 9,363 Total OCI 23,035 1,874 (3,362) 6 21,553 Less: OCI attributable to noncontrolling interests 1,477 — — — 1,477 OCI attributable to Enviri Corporation 24,512 1,874 (3,362) 6 23,030 Balance at June 30, 2023 $ (188,592) $ 2,031 $ (358,061) $ 16 $ (544,606) (a) Principally foreign currency fluctuation. (b) Net change from periodic revaluations. Amounts reclassified from AOCI were as follows: (In thousands) Three Months Ended Six Months Ended Location on the Condensed Consolidated Statements of Operations June 30 June 30 2023 2022 2023 2022 Amortization of cash flow hedging instruments: Foreign currency exchange forward contracts $ 866 $ (998) $ 1,277 $ (1,586) Income (loss) from discontinued businesses Interest rate swaps (617) 1,061 (865) 2,111 Interest expense Total before taxes 249 63 412 525 Income taxes (53) (233) (92) (357) Total reclassification of cash flow hedging instruments, net of tax $ 196 $ (170) $ 320 $ 168 Amortization of defined benefit pension items (c) : Actuarial losses $ 4,729 $ 4,496 $ 9,399 $ 9,223 Defined benefit pension income (expense) Prior service costs 115 113 229 233 Defined benefit pension income (expense) Total before taxes 4,844 4,609 9,628 9,456 Income taxes (293) (312) (585) (625) Total reclassification of defined benefit pension items, net of tax $ 4,551 $ 4,297 $ 9,043 $ 8,831 (c) These AOCI 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) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Effective June 5, 2023, the corporate name of the Company was changed from Harsco Corporation to Enviri Corporation. The Company has prepared these unaudited condensed consolidated financial statements in accordance with 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 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, 2022 Condensed Consolidated Balance Sheet information contained in this Quarterly Report on Form 10-Q was derived from the 2022 audited consolidated financial statements. These 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, 2022. 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 these unaudited condensed consolidated financial statements. |
Liquidity | Liquidity The Company’s cash flow forecasts, combined with existing cash and cash equivalents and borrowings available under the Senior Secured Credit Facilities, indicate sufficient liquidity to fund the Company’s operations for at least the next twelve months. As such, the Company’s unaudited consolidated financial statements have been prepared on the basis that it will continue as a going concern for a period extending beyond twelve months from the date the unaudited consolidated financial statements are issued. This assessment includes the expected ability to meet required financial covenants and the continued ability to draw down on the Senior Secured Credit Facilities (see Note 9). |
Reclassifications | Reclassifications Certain reclassifications have been made to prior year amounts to conform with current year classifications. These reclassifications did not have a material impact on the Company's condensed consolidated financial statements, including the notes thereto. |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted and Recently Issued Accounting Standards The following accounting standards have been adopted in 2023: On January 1, 2023, the Company adopted changes issued by the FASB that clarify that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with accounting standards governing revenue from contracts with customers. The adoption of these changes did not have an immediate impact on the Company's consolidated financial statements, but will be applied prospectively to future business combinations. On January 1, 2023, the Company adopted changes issued by the FASB that require a buyer in a supplier finance program, also referred to as reverse factoring, payables finance, or structured payables arrangements, to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude, by disclosing qualitative and quantitative information about the program. The adoption of these changes did not have a material impact on the Company's condensed consolidated financial statements, including the notes thereto. |
Dispositions (Tables)
Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Balance sheet positions and financial information included in net income from discontinued operations and statements of cash flows | The former Harsco Rail Segment's balance sheet positions as of June 30, 2023 and December 31, 2022 are presented as Assets held-for-sale and Liabilities of assets held-for-sale in the Condensed Consolidated Balance Sheets and are summarized as follows: (in thousands) June 30 December 31 Trade accounts receivable, net $ 52,368 $ 41,049 Other receivables 5,209 4,037 Inventories 109,242 105,256 Current portion of contract assets 68,167 84,848 Other current assets 36,008 30,950 Property, plant and equipment, net 44,392 41,004 Right-of-use assets, net 6,412 5,635 Goodwill 13,026 13,026 Intangible assets, net 2,616 2,746 Deferred income tax assets 2,701 6,887 Noncurrent portion of contract assets 20,420 — Other assets 974 807 Total Rail assets included in Assets held-for-sale $ 361,535 $ 336,245 Accounts payable $ 52,561 $ 49,083 Accrued compensation 2,534 1,211 Current portion of operating lease liabilities 2,925 2,635 Current portion of advances on contracts 34,089 45,037 Other current liabilities 61,090 61,039 Operating lease liabilities 3,472 3,121 Deferred tax liabilities 2,368 5,480 Other liabilities 518 861 Total Rail liabilities included in Liabilities of assets held-for-sale $ 159,557 $ 168,467 The results of the former Harsco Rail Segment are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for the six months ended June 30, 2023, and 2022. Certain key selected financial information included in Income (loss) from discontinued operations, net of tax, for the former Harsco Rail Segment is as follows: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Amounts directly attributable to the former Harsco Rail Segment: Service revenues $ 10,765 $ 7,488 $ 18,485 $ 14,198 Product revenues (a) 78,083 64,364 135,415 109,477 Cost of services sold 7,290 4,229 12,916 8,524 Cost of products sold (a) 60,762 52,548 106,505 125,094 Income (loss) from discontinued businesses 9,315 5,163 12,066 (30,732) Additional amounts allocated to the former Harsco Rail Segment: Selling, general and administrative expenses (b) $ 594 $ 1,862 $ 1,071 $ 3,511 (a) Changes in product revenues and cost of products sold for 2023 compared with 2022 reflect, in part, estimated forward loss provisions and adjustments on certain long-term contracts, as discussed below. (b) The Company includes costs to sell the Rail business in the caption Income (loss) from discontinued businesses on the Condensed Consolidated Statements of Operations. The following is selected financial information included on the Condensed Consolidated Statements of Cash Flows attributable to the former Harsco Rail Segment: Six Months Ended June 30 (In thousands) 2023 2022 Cash flows from investing activities Purchases of property, plant and equipment $ 1,236 $ 1,031 |
Accounts Receivable and Note _2
Accounts Receivable and Note Receivable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable consist of the following: (In thousands) June 30 December 31 Trade accounts receivable $ 305,106 $ 272,775 Less: Allowance for expected credit losses (8,585) (8,347) Trade accounts receivable, net $ 296,521 $ 264,428 Other receivables (a) $ 41,941 $ 25,379 (a) Other receivables include employee receivables, insurance receivable, tax claims and refunds and other miscellaneous items not included in Trade accounts receivable, net. (In millions) June 30 December 31 Note receivable, at amortized cost $ 13.4 $ 23.9 Note receivable, fair value 15.1 23.8 |
Schedule of provision for doubtful accounts related to trade accounts receivable | The provision for expected credit losses related to trade accounts receivable was as follows: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Provision for expected credit losses related to trade accounts receivable $ (113) $ (268) $ 394 $ 57 |
Schedule of AR Facility | Proceeds received from the AR Facility were as follows and are included in cash from operating activities in the Condensed Consolidated Statements of Cash Flows: Six Months Ended June 30 (In millions) 2023 2022 Upon execution in June 2022 $ — $ 120.0 Additional proceeds 5.0 — Total received $ 5.0 $ 120.0 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following: (In thousands) June 30 December 31 Finished goods $ 14,411 $ 11,809 Work-in-process 1,107 2,030 Raw materials and purchased parts 26,927 27,946 Stores and supplies 42,199 39,590 Total inventories $ 84,644 $ 81,375 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment ("PP&E") consist of the following: (In thousands) June 30 December 31 Land $ 72,090 $ 72,020 Land improvements 16,907 16,750 Buildings and improvements 208,666 217,926 Machinery and equipment 1,566,383 1,513,238 Uncompleted construction 78,420 84,472 Gross property, plant and equipment 1,942,466 1,904,406 Less: Accumulated depreciation (1,292,804) (1,247,531) Property, plant and equipment, net $ 649,662 $ 656,875 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Components of lease expense | The components of lease expense were as follows: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Finance leases: Amortization expense $ 2,022 $ 979 $ 3,563 $ 1,957 Interest on lease liabilities 578 182 932 365 Operating leases 9,127 8,432 17,681 16,501 Variable and short-term lease expense 13,602 11,986 25,688 25,329 Sublease income (1) (1) (3) (3) Total lease expense from continuing operations $ 25,328 $ 21,578 $ 47,861 $ 44,149 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | Long-term debt consists of the following: (In thousands) June 30 December 31 Senior Secured Credit Facilities: New Term Loan $ 490,000 $ 492,500 Revolving Credit Facility 410,000 370,000 5.75% Senior Notes 475,000 475,000 Other financing payable (including finance leases) in varying amounts 35,323 26,661 Total debt obligations 1,410,323 1,364,161 Less: deferred financing costs (13,588) (15,172) Total debt obligations, net of deferred financing costs 1,396,735 1,348,989 Less: current maturities of long-term debt (14,595) (11,994) Long-term debt $ 1,382,140 $ 1,336,995 |
Schedule of facility fees and debt-related income (expense) | The components of the Condensed Consolidated Statements of Operations caption Facility fees and debt-related income (expense) were as follows: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Gain on extinguishment of debt $ — $ 2,254 $ — $ 2,254 Unused debt commitment and amendment fees — (6) (12) (538) Securitization and factoring fees (2,730) (99) (5,081) (99) Facility fees and debt-related income (expense) $ (2,730) $ 2,149 $ (5,093) $ 1,617 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of net benefit costs | Three Months Ended June 30 Defined Benefit Pension Plan Net Periodic Pension Cost (Benefit) U.S. Plans International Plans (In thousands) 2023 2022 2023 2022 Service costs $ — $ — $ 308 $ 417 Interest costs 2,543 1,429 7,538 4,128 Expected return on plan assets (1,750) (2,698) (7,784) (9,720) Recognized prior service costs — — 115 113 Recognized actuarial losses 1,150 1,183 3,579 3,313 Defined benefit pension plan net periodic pension cost (benefit) $ 1,943 $ (86) $ 3,756 $ (1,749) Six Months Ended June 30 Defined Benefit Pension Plans Net Periodic Pension Cost (Benefit) U.S. Plans International Plans (In thousands) 2023 2022 2023 2022 Service costs $ — $ — $ 615 $ 849 Interest costs 5,086 2,858 14,952 8,522 Expected return on plan assets (3,500) (5,397) (15,441) (20,104) Recognized prior service costs — — 229 233 Recognized actuarial losses 2,301 2,366 7,098 6,857 Defined benefit pension plans net periodic pension cost (benefit) $ 3,887 $ (173) $ 7,453 $ (3,643) |
Schedule of contributions to pension plans |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | The following table summarizes information related to the location and undiscounted amount of the Company's environmental liabilities: (In thousands) June 30 December 31 Current portion of environmental liabilities (a) $ 7,135 $ 7,120 Long-term environmental liabilities 26,494 26,880 Total environmental liabilities $ 33,629 $ 34,000 (a) The current portion of environmental liabilities is included in the caption Other current liabilities on the Condensed Consolidated Balance Sheets. |
Reconciliation of Basic and D_2
Reconciliation of Basic and Diluted Shares (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted shares | Three Months Ended Six Months Ended June 30 June 30 (In thousands, except per share amounts) 2023 2022 2023 2022 Income (loss) from continuing operations attributable to Enviri Corporation common stockholders $ (14,208) $ (106,700) $ (23,765) $ (114,033) Weighted-average shares outstanding: Weighted-average shares outstanding - basic 79,816 79,509 79,725 79,437 Dilutive effect of stock-based compensation — — — — Weighted-average shares outstanding - diluted 79,816 79,509 79,725 79,437 Earnings (loss) from continuing operations per common share, attributable to Enviri Corporation common stockholders: Basic $ (0.18) $ (1.34) $ (0.30) $ (1.44) Diluted $ (0.18) $ (1.34) $ (0.30) $ (1.44) |
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 either antidilutive or the market conditions for the performance share units were not met: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Restricted stock units 1,023 797 1,012 811 Stock appreciation rights 2,429 2,193 2,451 2,422 Performance share units 1,411 1,128 1,402 1,177 |
Derivative Instruments, Hedgi_2
Derivative Instruments, Hedging Activities and Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 Asset derivatives (Level 2): Foreign currency exchange forward contracts Other current assets $ 34 $ 4,295 $ 4,329 Interest rate swaps Other current assets 3,110 — 3,110 Total $ 3,144 $ 4,295 $ 7,439 Liability derivatives (Level 2): Foreign currency exchange forward contracts Other current liabilities $ 753 $ 2,964 $ 3,717 Interest rate swaps Other liabilities 710 — 710 Total $ 1,463 $ 2,964 $ 4,427 December 31, 2022 Asset derivatives (Level 2): Foreign currency exchange forward contracts Other current assets $ 1,042 $ 2,154 $ 3,196 Total $ 1,042 $ 2,154 $ 3,196 Liability derivatives (Level 2): Foreign currency exchange forward contracts Other current liabilities $ 577 $ 4,796 $ 5,373 Total $ 577 $ 4,796 $ 5,373 |
Schedule of effect of derivative instruments | The effect of derivative instruments on the Company's Condensed Consolidated Statements of Comprehensive Income (Loss) was as follows: Derivatives Designated as Hedging Instruments Amount Recognized in Amount Reclassified from Three Months Ended Three Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Foreign currency exchange forward contracts $ (438) $ 957 $ 866 $ (998) Interest rate swaps 6,152 — (617) 1,061 $ 5,714 $ 957 $ 249 $ 63 Amount Recognized in Amount Reclassified from Six Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Foreign currency exchange forward contracts $ (1,121) $ 1,966 $ 1,277 $ (1,586) Interest rate swaps 3,265 — (865) 2,111 $ 2,144 $ 1,966 $ 412 $ 525 The location and amount of gain (loss) recognized on the Company's Condensed Consolidated Statements of Operations was as follows: Three Months Ended June 30 2023 2022 (In thousands) Interest Expense Income (Loss) from Discontinued Businesses Interest Expense Income (Loss) from Discontinued Businesses Total amounts in the Condensed Consolidated Statement of Operations in which the effects of derivatives designated as hedging instruments are recorded $ (25,724) $ 7,556 $ (16,692) $ 1,879 Interest rate swaps: Gain or (loss) reclassified from AOCI into income 617 — (1,061) — Amount recognized in earnings due to ineffectiveness — — 720 — Foreign exchange contracts: Gain or (loss) reclassified from AOCI into income — (866) — 998 Six Months Ended June 30 2023 2022 (In thousands) Interest Expense Income (Loss) from Discontinued Businesses Interest Expense Income (Loss) from Discontinued Businesses Total amounts in the Condensed Consolidated Statement of Operations in which the effects of derivatives designated as hedging instruments are recorded $ (50,052) $ 8,175 $ (31,784) $ (37,218) Interest rate swaps: Gain or (loss) reclassified from AOCI into income 865 — (2,111) — Amount recognized in earnings due to ineffectiveness — — 1,611 — Foreign exchange contracts: Gain or (loss) reclassified from AOCI into income — (1,277) — 1,586 Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives (a) Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Foreign currency exchange forward contracts Cost of services and products sold $ 4,862 $ 18,234 $ 1,565 $ 22,072 (a) These gains (losses) offset amounts recognized in cost of services and products sold principally as a result of intercompany or third party foreign currency exposures. |
Review of Operations by Segme_2
Review of Operations by Segment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of operations by segment | Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Revenues From Continuing Operations Harsco Environmental $ 289,593 $ 277,599 $ 562,782 $ 539,650 Clean Earth 230,575 203,453 453,039 394,199 Total Revenues From Continuing Operations $ 520,168 $ 481,052 $ 1,015,821 $ 933,849 Operating Income (Loss) From Continuing Operations Harsco Environmental $ 12,733 $ 23,547 $ 35,018 $ 41,814 Clean Earth 23,034 (111,668) 39,505 (112,965) Corporate (11,452) (8,882) (21,203) (18,104) Total Operating Income (Loss) From Continuing Operations $ 24,315 $ (97,003) $ 53,320 $ (89,255) Depreciation Harsco Environmental $ 28,354 $ 27,467 $ 55,914 $ 55,539 Clean Earth 5,547 4,536 10,474 9,637 Corporate 556 460 1,108 891 Total Depreciation $ 34,457 $ 32,463 $ 67,496 $ 66,067 Amortization Harsco Environmental $ 1,008 $ 1,714 $ 2,007 $ 3,542 Clean Earth 6,113 6,131 12,142 12,206 Corporate (a) 946 636 1,883 1,319 Total Amortization $ 8,067 $ 8,481 $ 16,032 $ 17,067 Capital Expenditures Harsco Environmental $ 38,540 $ 23,585 $ 55,091 $ 48,375 Clean Earth 4,974 3,550 9,804 10,246 Corporate 110 1,172 210 2,138 Total Capital Expenditures $ 43,624 $ 28,307 $ 65,105 $ 60,759 (a) Amortization expense on Corporate relates to the amortization of deferred financing costs. |
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 Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Segment operating income (loss) $ 35,767 $ (88,121) $ 74,523 $ (71,151) General Corporate expense (11,452) (8,882) (21,203) (18,104) Operating income (loss) from continuing operations 24,315 (97,003) 53,320 (89,255) Interest income 1,567 693 3,022 1,337 Interest expense (25,724) (16,692) (50,052) (31,784) Facility fees and debt-related income (expense) (2,730) 2,149 (5,093) 1,617 Defined benefit pension income (5,407) 2,247 (10,742) 4,657 Income (loss) from continuing operations before income taxes and equity income $ (7,979) $ (108,606) $ (9,545) $ (113,428) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 (In thousands) Harsco Environmental Segment Clean Earth Consolidated Totals Primary Geographical Markets (a) : North America $ 81,616 $ 230,575 $ 312,191 Western Europe 107,318 — 107,318 Latin America (b) 42,180 — 42,180 Asia-Pacific 32,339 — 32,339 Middle East and Africa 21,117 — 21,117 Eastern Europe 5,023 — 5,023 Total Revenues $ 289,593 $ 230,575 $ 520,168 Key Product and Service Groups: Environmental services related to resource recovery for metals manufacturing and related logistical services $ 242,638 $ — $ 242,638 Ecoproducts 40,504 — 40,504 Environmental systems for aluminum dross and scrap processing 6,451 — 6,451 Hazardous waste processing solutions — 197,506 197,506 Soil and dredged materials processing and reuse solutions — 33,069 33,069 Total Revenues $ 289,593 $ 230,575 $ 520,168 Three Months Ended June 30, 2022 (In thousands) Harsco Environmental Segment Clean Earth Consolidated Totals Primary Geographical Markets (a) : North America $ 80,709 $ 203,453 $ 284,162 Western Europe 99,591 — 99,591 Latin America (b) 39,202 — 39,202 Asia-Pacific 31,950 — 31,950 Middle East and Africa 20,762 — 20,762 Eastern Europe 5,385 — 5,385 Total Revenues $ 277,599 $ 203,453 $ 481,052 Key Product and Service Groups: Environmental services related to resource recovery for metals manufacturing and related logistical services $ 236,165 $ — $ 236,165 Ecoproducts 38,083 — 38,083 Environmental systems for aluminum dross and scrap processing 3,351 — 3,351 Hazardous waste processing solutions — 170,817 170,817 Soil and dredged materials processing and reuse solutions — 32,636 32,636 Total Revenues $ 277,599 $ 203,453 $ 481,052 Six Months Ended June 30, 2023 (In thousands) Harsco Environmental Segment Clean Earth Consolidated Totals Primary Geographical Markets (a) : North America $ 160,089 $ 453,039 $ 613,128 Western Europe 208,704 — 208,704 Latin America (b) 83,135 — 83,135 Asia-Pacific 61,300 — 61,300 Middle East and Africa 39,522 — 39,522 Eastern Europe 10,032 — 10,032 Total Revenues $ 562,782 $ 453,039 $ 1,015,821 Six Months Ended June 30, 2023 (In thousands) Harsco Environmental Segment Clean Earth Consolidated Totals Key Product and Service Groups: Environmental services related to resource recovery for metals manufacturing and related logistical services $ 471,999 $ — $ 471,999 Ecoproducts 78,906 — 78,906 Environmental systems for aluminum dross and scrap processing 11,877 — 11,877 Hazardous waste processing solutions — 383,618 383,618 Soil and dredged materials processing and reuse solutions — 69,421 69,421 Total Revenues $ 562,782 $ 453,039 $ 1,015,821 Six Months Ended June 30, 2022 (In thousands) Harsco Environmental Segment Clean Earth Consolidated Totals Primary Geographical Markets (a) : North America $ 151,788 $ 394,199 $ 545,987 Western Europe 201,670 — 201,670 Latin America (b) 75,007 — 75,007 Asia-Pacific 60,018 — 60,018 Middle East and Africa 40,648 — 40,648 Eastern Europe 10,519 — 10,519 Total Revenues $ 539,650 $ 394,199 $ 933,849 Key Product and Service Groups: Environmental services related to resource recovery for metals manufacturing and related logistical services $ 463,854 $ — $ 463,854 Ecoproducts 70,048 — 70,048 Environmental systems for aluminum dross and scrap processing 5,748 — 5,748 Hazardous waste processing solutions — 329,824 329,824 Soil and dredged materials processing and reuse solutions — 64,375 64,375 Total Revenues $ 539,650 $ 394,199 $ 933,849 (a) Revenues are attributed to individual countries based on the location of the facility generating the revenue. (b) Includes Mexico. |
Other (Income) Expenses, Net (T
Other (Income) Expenses, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of other (income) expenses | The major components of this Condensed Consolidated Statements of Operations caption were as follows: Three Months Ended Six Months Ended June 30 June 30 (In thousands) 2023 2022 2023 2022 Employee termination benefit costs $ 120 $ 605 $ 654 $ 297 Other costs (income) for exit activities (a) (2,353) 477 (8,560) 1,058 Impaired asset write-downs — 296 — 355 Net gains — (92) (230) (1,904) Other 10 759 (238) 1,060 Other (income) expenses, net $ (2,223) $ 2,045 $ (8,374) $ 866 (a) Includes a $3.0 million and $9.8 million net gain recognized related to a lease modification during the three and six months ended June 30, 2023, respectively, that resulted in lease incentive for the Company to relocate an HE site prior to the end of the expected lease term. |
Components of Accumulated Oth_2
Components of Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive loss | The components of AOCI, net of the effect of income taxes, and activity for the six months ended June 30, 2022 and 2023 were as follows: Components of AOCI, 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, 2021 $ (134,889) $ (3,024) $ (422,248) $ 22 $ (560,139) OCI before reclassifications (61,493) (a) 1,692 (b) 33,697 (a) (13) (26,117) Amounts reclassified from AOCI, net of tax — 168 8,831 — 8,999 Total OCI (61,493) 1,860 42,528 (13) (17,118) Less: OCI attributable to noncontrolling interests 3,385 — — — 3,385 OCI attributable to Enviri Corporation (58,108) 1,860 42,528 (13) (13,733) Balance at June 30, 2022 $ (192,997) $ (1,164) $ (379,720) $ 9 $ (573,872) Components of AOCI, 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, 2022 $ (213,104) $ 157 $ (354,699) $ 10 $ (567,636) OCI before reclassifications 23,035 (a) 1,554 (b) (12,405) (a) 6 12,190 Amounts reclassified from AOCI, net of tax — 320 9,043 — 9,363 Total OCI 23,035 1,874 (3,362) 6 21,553 Less: OCI attributable to noncontrolling interests 1,477 — — — 1,477 OCI attributable to Enviri Corporation 24,512 1,874 (3,362) 6 23,030 Balance at June 30, 2023 $ (188,592) $ 2,031 $ (358,061) $ 16 $ (544,606) (a) Principally foreign currency fluctuation. (b) Net change from periodic revaluations. |
Reclassification out of accumulated other comprehensive income | Amounts reclassified from AOCI were as follows: (In thousands) Three Months Ended Six Months Ended Location on the Condensed Consolidated Statements of Operations June 30 June 30 2023 2022 2023 2022 Amortization of cash flow hedging instruments: Foreign currency exchange forward contracts $ 866 $ (998) $ 1,277 $ (1,586) Income (loss) from discontinued businesses Interest rate swaps (617) 1,061 (865) 2,111 Interest expense Total before taxes 249 63 412 525 Income taxes (53) (233) (92) (357) Total reclassification of cash flow hedging instruments, net of tax $ 196 $ (170) $ 320 $ 168 Amortization of defined benefit pension items (c) : Actuarial losses $ 4,729 $ 4,496 $ 9,399 $ 9,223 Defined benefit pension income (expense) Prior service costs 115 113 229 233 Defined benefit pension income (expense) Total before taxes 4,844 4,609 9,628 9,456 Income taxes (293) (312) (585) (625) Total reclassification of defined benefit pension items, net of tax $ 4,551 $ 4,297 $ 9,043 $ 8,831 (c) These AOCI components are included in the computation of net periodic pension costs. See Note 10, Employee Benefit Plans, for additional details. |
Dispositions - Schedule of Bala
Dispositions - Schedule of Balance Sheet from Disposal of Harsco Rail Segment (Details) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total Rail liabilities included in Liabilities of assets held-for-sale | $ 153,199 | $ 159,004 |
Discontinued Operations, Held-for-sale | Harsco Rail Segment | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Trade accounts receivable, net | 52,368 | 41,049 |
Other receivables | 5,209 | 4,037 |
Inventories | 109,242 | 105,256 |
Current portion of contract assets | 68,167 | 84,848 |
Other current assets | 36,008 | 30,950 |
Property, plant and equipment, net | 44,392 | 41,004 |
Right-of-use assets, net | 6,412 | 5,635 |
Goodwill | 13,026 | 13,026 |
Intangible assets, net | 2,616 | 2,746 |
Deferred income tax assets | 2,701 | 6,887 |
Noncurrent portion of contract assets | 20,420 | 0 |
Other assets | 974 | 807 |
Total Rail assets included in Assets held-for-sale | 361,535 | 336,245 |
Accounts payable | 52,561 | 49,083 |
Accrued compensation | 2,534 | 1,211 |
Current portion of operating lease liabilities | 2,925 | 2,635 |
Current portion of advances on contracts | 34,089 | 45,037 |
Other current liabilities | 61,090 | 61,039 |
Operating lease liabilities | 3,472 | 3,121 |
Deferred tax liabilities | 2,368 | 5,480 |
Other liabilities | 518 | 861 |
Total Rail liabilities included in Liabilities of assets held-for-sale | $ 159,557 | $ 168,467 |
Dispositions - Schedule of Inco
Dispositions - Schedule of Income (Loss) from Discontinued Operations Harsco Rail (Details) - Discontinued Operations, Held-for-sale - Harsco Rail Segment - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued businesses | $ 9,315 | $ 5,163 | $ 12,066 | $ (30,732) |
Selling, general and administrative expenses | 594 | 1,862 | 1,071 | 3,511 |
Service revenues | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 10,765 | 7,488 | 18,485 | 14,198 |
Cost of services and products sold | 7,290 | 4,229 | 12,916 | 8,524 |
Product Revenues | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 78,083 | 64,364 | 135,415 | 109,477 |
Cost of services and products sold | $ 60,762 | $ 52,548 | $ 106,505 | $ 125,094 |
Dispositions - Narrative (Detai
Dispositions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Network Rail | ||||
Business Acquisition [Line Items] | ||||
Percentage complete | 51% | 51% | ||
Reversal of loss on contracts | $ (23.6) | |||
Revenue reduction | $ 0.3 | $ 24.5 | ||
Deutsche Bahn | ||||
Business Acquisition [Line Items] | ||||
Percentage complete | 38% | 38% | ||
Contract estimated forward loss provision for Harsco Rail Segment | $ (8.4) | (7.4) | ||
SBB | ||||
Business Acquisition [Line Items] | ||||
Contract estimated forward loss provision for Harsco Rail Segment | $ (6.1) | (3.5) | ||
SBB | Contract | ||||
Business Acquisition [Line Items] | ||||
Percentage complete | 83% | 83% | ||
Discontinued Operations, Held-for-sale | Harsco Rail Segment | ||||
Business Acquisition [Line Items] | ||||
Corporate overhead expenses | $ 1.1 | $ 1.1 | $ 2.1 | $ 2.1 |
Dispositions - Summary of Cash
Dispositions - Summary of Cash Flow Information from Disposal of Harsco Rail Segment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Discontinued Operations, Held-for-sale | Harsco Rail Segment | ||
Business Acquisition [Line Items] | ||
Purchases of property, plant and equipment | $ 1,236 | $ 1,031 |
Accounts Receivable and Note _3
Accounts Receivable and Note Receivable - Schedule of Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 305,106 | $ 272,775 |
Less: Allowance for expected credit losses | (8,585) | (8,347) |
Trade accounts receivable, net | 296,521 | 264,428 |
Other receivables | $ 41,941 | $ 25,379 |
Accounts Receivable and Note _4
Accounts Receivable and Note Receivable - Schedule of Changes in Provisions For Allowance For Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Receivables [Abstract] | ||||
Provision for expected credit losses related to trade accounts receivable | $ (113) | $ (268) | $ 394 | $ 57 |
Accounts Receivable and Note _5
Accounts Receivable and Note Receivable - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Sep. 30, 2022 | Jan. 31, 2020 | Jan. 01, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Trade accounts receivable | $ 305,106 | $ 305,106 | $ 272,775 | ||||
Accounts receivable past due by twelve months or more | 4,000 | 4,000 | |||||
Trade accounts receivable, net | 296,521 | 296,521 | 264,428 | ||||
Accounts receivable under factoring arrangement, program capacity | 32,200 | 32,200 | 31,400 | ||||
Note receivable, face value | $ 40,000 | ||||||
Note receivable, interest rate | 2.50% | ||||||
Proceeds from notes receivable | 11,200 | 11,238 | $ 8,605 | ||||
Middle East | Harsco Environmental Segment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Trade accounts receivable, net | 5,500 | 5,500 | |||||
Harsco Industrial IKG | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Selling price | $ 85,000 | ||||||
Accounts Receivable Under Factoring Arrangement | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Trade accounts receivable, net | 15,200 | 15,200 | 17,300 | ||||
PNC | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Accounts receivable securitization, maximum purchase commitment | $ 150,000 | ||||||
Total outstanding trade receivables sold and derecognized | 150,000 | 150,000 | 145,000 | ||||
Accounts receivable from securitization | 79,000 | 79,000 | $ 69,700 | ||||
Greater than 12 months | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Trade accounts receivable | $ 13,600 | $ 13,600 |
Accounts Receivable and Note _6
Accounts Receivable and Note Receivable - Schedule of AR Facility (Details) - PNC - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Upon execution in June 2022 | $ 0 | $ 120 |
Additional proceeds | 5 | 0 |
Total received | $ 5 | $ 120 |
Accounts Receivable and Note _7
Accounts Receivable and Note Receivable - Schedule of Fair Value of Notes Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Note receivable, at amortized cost | $ 13,400 | $ 23,900 |
Note receivable, fair value | $ 15,100 | $ 23,800 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 14,411 | $ 11,809 |
Work-in-process | 1,107 | 2,030 |
Raw materials and purchased parts | 26,927 | 27,946 |
Stores and supplies | 42,199 | 39,590 |
Total inventories | $ 84,644 | $ 81,375 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment | ||
Gross property, plant and equipment | $ 1,942,466 | $ 1,904,406 |
Less: Accumulated depreciation | (1,292,804) | (1,247,531) |
Property, plant and equipment, net | 649,662 | 656,875 |
Land | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 72,090 | 72,020 |
Land improvements | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 16,907 | 16,750 |
Buildings and improvements | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 208,666 | 217,926 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 1,566,383 | 1,513,238 |
Uncompleted construction | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | $ 78,420 | $ 84,472 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment | |||||
Property, plant and equipment, net | $ 649,662 | $ 649,662 | $ 656,875 | ||
Property, plant and equipment impairment charge | $ 14,099 | $ 0 | $ 14,099 | $ 0 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Finance leases: | ||||
Amortization expense | $ 2,022 | $ 979 | $ 3,563 | $ 1,957 |
Interest on lease liabilities | 578 | 182 | 932 | 365 |
Operating leases | 9,127 | 8,432 | 17,681 | 16,501 |
Variable and short-term lease expense | 13,602 | 11,986 | 25,688 | 25,329 |
Sublease income | (1) | (1) | (3) | (3) |
Total lease expense from continuing operations | $ 25,328 | $ 21,578 | $ 47,861 | $ 44,149 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 0 | $ (104,580) | $ 0 | $ (104,580) |
Debt and Credit Agreements - Sc
Debt and Credit Agreements - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt obligation | $ 1,410,323 | $ 1,364,161 |
Less: deferred financing costs | (13,588) | (15,172) |
Total debt obligations, net of deferred financing costs | 1,396,735 | 1,348,989 |
Current maturities of long-term debt | (14,595) | (11,994) |
Long-term debt | 1,382,140 | 1,336,995 |
Other financing payable (including finance leases) in varying amounts | ||
Debt Instrument [Line Items] | ||
Debt obligation | 35,323 | 26,661 |
Term Loan Facility | New Term Loan | ||
Debt Instrument [Line Items] | ||
Debt obligation | 490,000 | 492,500 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt obligation | 410,000 | 370,000 |
Senior Notes | 5.75% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt obligation | $ 475,000 | $ 475,000 |
Interest rate | 5.75% |
Debt and Credit Agreements - _2
Debt and Credit Agreements - Schedule of Facility Fees and Debt-Related Income (Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Facility Fees and Debt-Related Income [Line Items] | ||||
Facility fees and debt-related income (expense) | $ (2,730) | $ 2,149 | $ (5,093) | $ 1,617 |
Facility Fees and Debt-Related Income (Expense) | ||||
Schedule of Facility Fees and Debt-Related Income [Line Items] | ||||
Gain on extinguishment of debt | 0 | 2,254 | 0 | 2,254 |
Unused Debt Commitment And Amendment Fees | 0 | (6) | (12) | (538) |
Securitization And Factoring Fees | $ (2,730) | $ (99) | $ (5,081) | $ (99) |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) | 3 Months Ended | ||
Dec. 31, 2024 | Jun. 30, 2023 | Jul. 01, 2024 | |
Debt Instrument [Line Items] | |||
Total net debt to consolidated adjusted EBITDA ratio | 4.63 | ||
Consolidated Adjusted EBITDA To Consolidated Interest Charges Ratio | 3.01 | ||
Revolving Credit Facility | Forecast | |||
Debt Instrument [Line Items] | |||
Decrease to net debt to consolidated adjusted EBITDA ratio covenant | 0.50 | ||
Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Threshold of consolidated adjusted EBITDA to consolidated interest charges ratio covenant | 2.75 | ||
Revolving Credit Facility | Minimum | Forecast | |||
Debt Instrument [Line Items] | |||
Threshold of consolidated adjusted EBITDA to consolidated interest charges ratio covenant | 3 | ||
Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Net debt to consolidated adjusted EBITDA ratio | 5.50 | ||
Revolving Credit Facility | Maximum | Forecast | |||
Debt Instrument [Line Items] | |||
Net debt to consolidated adjusted EBITDA ratio | 4 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - Pension Plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
U.S. Plans | ||||
Defined benefit plans: | ||||
Service costs | $ 0 | $ 0 | $ 0 | $ 0 |
Interest costs | 2,543 | 1,429 | 5,086 | 2,858 |
Expected return on plan assets | (1,750) | (2,698) | (3,500) | (5,397) |
Recognized prior service costs | 0 | 0 | 0 | 0 |
Recognized actuarial losses | 1,150 | 1,183 | 2,301 | 2,366 |
Defined benefit pension plans net periodic pension cost (benefit) | 1,943 | (86) | 3,887 | (173) |
Defined benefit pension plan | 800 | |||
Anticipated contributions to defined benefit pension plans during the remainder of the fiscal year | 1,000 | 1,000 | ||
International Plans | ||||
Defined benefit plans: | ||||
Service costs | 308 | 417 | 615 | 849 |
Interest costs | 7,538 | 4,128 | 14,952 | 8,522 |
Expected return on plan assets | (7,784) | (9,720) | (15,441) | (20,104) |
Recognized prior service costs | 115 | 113 | 229 | 233 |
Recognized actuarial losses | 3,579 | 3,313 | 7,098 | 6,857 |
Defined benefit pension plans net periodic pension cost (benefit) | 3,756 | $ (1,749) | 7,453 | $ (3,643) |
Defined benefit pension plan | 15,300 | |||
Anticipated contributions to defined benefit pension plans during the remainder of the fiscal year | $ 8,800 | $ 8,800 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (10,319) | $ 3,115 | $ (17,242) | $ 1,894 |
Valuation allowance | 3,700 | 3,700 | ||
Unrecognized tax benefits | 4,300 | 4,300 | ||
Unrecognized income tax benefit that will be recognized within the next twelve months | $ 1,300 | $ 1,300 |
Commitments and Contingencies (
Commitments and Contingencies (Details) € in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||
Jun. 04, 2018 USD ($) | Dec. 31, 2018 USD ($) | Aug. 31, 2005 USD ($) | Jun. 30, 2023 USD ($) claim case | Jun. 30, 2023 USD ($) defendant claim case | Dec. 31, 2022 USD ($) | Mar. 22, 2022 USD ($) | Mar. 21, 2022 USD ($) | Feb. 25, 2022 EUR (€) | Nov. 23, 2021 USD ($) | Oct. 14, 2021 EUR (€) | Dec. 30, 2020 USD ($) | Jan. 27, 2020 party | Nov. 01, 2019 USD ($) | Nov. 01, 2019 BRL (R$) | Mar. 18, 2019 USD ($) | Mar. 18, 2019 BRL (R$) | |
Commitments and Contingencies | |||||||||||||||||
Number Of Potentially Related Parties | party | 20 | ||||||||||||||||
Reserve for loss contingencies | $ 5,700,000 | $ 5,700,000 | |||||||||||||||
Penalties per day | $ 5,000 | R$ 25000 | $ 1,000 | R$ 5000 | |||||||||||||
Penalties | 2,100,000 | 10,000,000 | |||||||||||||||
Current Portion of Environmental Liabilities | 7,135,000 | 7,135,000 | $ 7,120,000 | ||||||||||||||
Environmental liabilities | 26,494,000 | 26,494,000 | 26,880,000 | ||||||||||||||
Total environmental liabilities | 33,629,000 | 33,629,000 | $ 34,000,000 | ||||||||||||||
Proposed Civil Penalty | $ 390,092 | ||||||||||||||||
Accrued payment for environmental loss | 270,000 | ||||||||||||||||
Malpractice Insurance, Deductible | 5,000,000 | ||||||||||||||||
Penalty Liability | 600,000 | 600,000 | |||||||||||||||
Payments for Legal Settlements | 239,500 | ||||||||||||||||
BRAZIL | |||||||||||||||||
Commitments and Contingencies | |||||||||||||||||
Loss Contingencies, Unpaid Service Taxes | $ 2,200,000 | ||||||||||||||||
Loss Contingencies, Overall Liability | $ 3,700,000 | 3,700,000 | |||||||||||||||
Brazilian Tax Disputes - Jan 2004 through May 2005 | Sao Paulo State Revenue Authority | |||||||||||||||||
Commitments and Contingencies | |||||||||||||||||
Damages sought - interest, penalties and fees | 18,700,000 | ||||||||||||||||
Damages sought - principal | $ 1,300,000 | ||||||||||||||||
Loss contingency, reduced penalty | $ 1,300,000 | ||||||||||||||||
Amount of damages sought | $ 7,600,000 | ||||||||||||||||
Brazilian Tax Disputes - Jan 2002 through Dec 2003 | Sao Paulo State Revenue Authority | |||||||||||||||||
Commitments and Contingencies | |||||||||||||||||
Damages sought - interest, penalties and fees | $ 4,000,000 | ||||||||||||||||
Damages sought - principal | 1,200,000 | ||||||||||||||||
Loss contingency, reduced penalty | $ 900,000 | ||||||||||||||||
Amount of damages sought | $ 5,200,000 | ||||||||||||||||
Loss contingency, reduced penalty, including interest | $ 5,800,000 | ||||||||||||||||
Other | |||||||||||||||||
Commitments and Contingencies | |||||||||||||||||
Approximate number of defendants that includes the company named in legal actions | defendant | 90 | ||||||||||||||||
Number of pending claims | claim | 17,259 | 17,259 | |||||||||||||||
Number of claims dismissed to date by stipulation or summary judgment prior to trial | case | 28,432 | ||||||||||||||||
Other | Active or In Extremis docket | |||||||||||||||||
Commitments and Contingencies | |||||||||||||||||
Number of pending claims | claim | 53 | 53 | |||||||||||||||
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 | 16,602 | 16,602 | |||||||||||||||
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 | 16,549 | 16,549 | |||||||||||||||
Other | New York State Supreme Court, Counties Excluding New York County | |||||||||||||||||
Commitments and Contingencies | |||||||||||||||||
Number of pending claims | case | 115 | 115 | |||||||||||||||
Other | Courts Located In States Other Than New York | |||||||||||||||||
Commitments and Contingencies | |||||||||||||||||
Number of pending claims | case | 542 | 542 | |||||||||||||||
U.S. EPA Notice of Intent | |||||||||||||||||
Commitments and Contingencies | |||||||||||||||||
Penalties | $ 3,000,000 | ||||||||||||||||
Penalty Matrix From PA DEP | |||||||||||||||||
Commitments and Contingencies | |||||||||||||||||
Penalties | $ 1,000,000 | ||||||||||||||||
Alleged Violation of Environmental Permit in Ijmuiden, Netherland | Amsterdam Public Prosecutor’s Office | |||||||||||||||||
Commitments and Contingencies | |||||||||||||||||
Loss Contingency, Amount Seeking From Other Party | € | € 100 | ||||||||||||||||
Loss Contingency, Fine Issued By Court | € | € 5 | ||||||||||||||||
CSN | |||||||||||||||||
Commitments and Contingencies | |||||||||||||||||
Penalties per day | $ 21,000 | R$ 100000 | $ 4,000 | R$ 20000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Loss Contingencies by Contingency (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Current Portion of Environmental Liabilities | $ 7,135,000 | $ 7,120,000 |
Long-term environmental liabilities | 26,494,000 | 26,880,000 |
Total environmental liabilities | $ 33,629,000 | $ 34,000,000 |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations attributable to Enviri Corporation common stockholders | $ (14,208) | $ (106,700) | $ (23,765) | $ (114,033) |
Weighted-average shares outstanding - basic (in shares) | 79,816 | 79,509 | 79,725 | 79,437 |
Dilutive effect of stock-based compensation (in shares) | 0 | 0 | 0 | 0 |
Weighted-average shares outstanding - diluted (in shares) | 79,816 | 79,509 | 79,725 | 79,437 |
Earnings (loss) from continuing operations per common share, attributable to Enviri Corporation common stockholders: | ||||
Basic (in dollars per share) | $ (0.18) | $ (1.34) | $ (0.30) | $ (1.44) |
Diluted (in dollars per share) | $ (0.18) | $ (1.34) | $ (0.30) | $ (1.44) |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restricted stock units | ||||
Antidilutive securities | ||||
Number of securities not included in computation of diluted earnings per share (in shares) | 1,023 | 797 | 1,012 | 811 |
Stock appreciation rights | ||||
Antidilutive securities | ||||
Number of securities not included in computation of diluted earnings per share (in shares) | 2,429 | 2,193 | 2,451 | 2,422 |
Performance share units | ||||
Antidilutive securities | ||||
Number of securities not included in computation of diluted earnings per share (in shares) | 1,411 | 1,128 | 1,402 | 1,177 |
Derivative Instruments, Hedgi_3
Derivative Instruments, Hedging Activities and Fair Value - Fair Value of Outstanding Derivative Contracts (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative contracts | ||
Asset derivatives | $ 7,439 | $ 3,196 |
Liability derivatives | 4,427 | 5,373 |
Foreign currency exchange forward contracts | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 4,329 | 3,196 |
Foreign currency exchange forward contracts | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 3,717 | 5,373 |
Interest rate swaps | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 3,110 | |
Interest rate swaps | Other liabilities | ||
Derivative contracts | ||
Liability derivatives | 710 | |
Fair Value of Derivatives Designated as Hedging Instruments | ||
Derivative contracts | ||
Asset derivatives | 3,144 | 1,042 |
Liability derivatives | 1,463 | 577 |
Fair Value of Derivatives Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 34 | 1,042 |
Fair Value of Derivatives Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 753 | 577 |
Fair Value of Derivatives Designated as Hedging Instruments | Interest rate swaps | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 3,110 | |
Fair Value of Derivatives Designated as Hedging Instruments | Interest rate swaps | Other liabilities | ||
Derivative contracts | ||
Liability derivatives | 710 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | ||
Derivative contracts | ||
Asset derivatives | 4,295 | 2,154 |
Liability derivatives | 2,964 | 4,796 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 4,295 | 2,154 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign currency exchange forward contracts | Other current liabilities | ||
Derivative contracts | ||
Liability derivatives | 2,964 | $ 4,796 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Other current assets | ||
Derivative contracts | ||
Asset derivatives | 0 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Other liabilities | ||
Derivative contracts | ||
Liability derivatives | $ 0 |
Derivative Instruments, Hedgi_4
Derivative Instruments, Hedging Activities and Fair Value - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Foreign Currency Derivatives | |||||
Net asset (liability) offset against collateral | $ 500,000 | $ 500,000 | $ (100,000) | ||
Pre-tax net gains (losses) on certain loans designated as hedges of net investments in foreign subsidiaries | 1,100,000 | $ (600,000) | 1,500,000 | $ (1,200,000) | |
Long-term debt, fair value | 1,337,200,000 | 1,337,200,000 | 1,227,600,000 | ||
Foreign currency exchange forward contracts | |||||
Foreign Currency Derivatives | |||||
Derivative, Notional Amount | 588,600,000 | 588,600,000 | $ 573,800,000 | ||
Term Loan | |||||
Foreign Currency Derivatives | |||||
Principal amount | 300,000,000 | 300,000,000 | |||
Term Loan Facility, Fixed-Rate | Term Loan | |||||
Foreign Currency Derivatives | |||||
Principal amount | 200,000,000 | $ 200,000,000 | |||
LIBOR | Term Loan Facility, Fixed-Rate | Term Loan | |||||
Foreign Currency Derivatives | |||||
Variable rate basis spread (as a percent) | 3.12% | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Term Loan | Term Loan Facility, Fixed-Rate | Minimum | |||||
Foreign Currency Derivatives | |||||
Variable rate basis spread (as a percent) | 4.17% | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Term Loan | Term Loan Facility, Fixed-Rate | Maximum | |||||
Foreign Currency Derivatives | |||||
Variable rate basis spread (as a percent) | 4.21% | ||||
Reported Value Measurement | |||||
Foreign Currency Derivatives | |||||
Long-term Debt | $ 1,410,300,000 | $ 1,410,300,000 | $ 1,364,200,000 |
Derivative Instruments, Hedgi_5
Derivative Instruments, Hedging Activities and Fair Value - Effect of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Effect of derivative instruments | ||||
Amount Recognized in OCI on Derivatives | $ 5,714 | $ 957 | $ 2,144 | $ 1,966 |
Amount Reclassified from AOCI into Income - Effective Portion or Equity | 249 | 63 | 412 | 525 |
Foreign currency exchange forward contracts | ||||
Effect of derivative instruments | ||||
Amount Recognized in OCI on Derivatives | (438) | 957 | (1,121) | 1,966 |
Foreign currency exchange forward contracts | Income (Loss) from Discontinued Businesses | ||||
Effect of derivative instruments | ||||
Amount Reclassified from AOCI into Income - Effective Portion or Equity | 866 | (998) | 1,277 | (1,586) |
Interest rate swaps | ||||
Effect of derivative instruments | ||||
Amount Recognized in OCI on Derivatives | 6,152 | 0 | 3,265 | 0 |
Interest rate swaps | Income (Loss) from Discontinued Businesses | ||||
Effect of derivative instruments | ||||
Amount Reclassified from AOCI into Income - Effective Portion or Equity | 0 | 0 | 0 | 0 |
Interest rate swaps | Interest Expense | ||||
Effect of derivative instruments | ||||
Amount Reclassified from AOCI into Income - Effective Portion or Equity | $ (617) | $ 1,061 | $ (865) | $ 2,111 |
Derivative Instruments, Hedgi_6
Derivative Instruments, Hedging Activities and Fair Value - Derivatives Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative [Line Items] | ||||
Interest expense | $ (25,724) | $ (16,692) | $ (50,052) | $ (31,784) |
Income (loss) from discontinued businesses | 7,556 | 1,879 | 8,175 | (37,218) |
Gain or (loss) reclassified from AOCI into income | (249) | (63) | (412) | (525) |
Fair Value of Derivatives Designated as Hedging Instruments | ||||
Derivative [Line Items] | ||||
Interest expense | (25,724) | (16,692) | (50,052) | (31,784) |
Interest Expense | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Gain or (loss) reclassified from AOCI into income | 617 | (1,061) | 865 | (2,111) |
Amount recognized in earnings due to ineffectiveness | 0 | 720 | 0 | 1,611 |
Interest Expense | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Income (Loss) from Discontinued Businesses | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Gain or (loss) reclassified from AOCI into income | 0 | 0 | 0 | 0 |
Amount recognized in earnings due to ineffectiveness | 0 | 0 | 0 | 0 |
Income (Loss) from Discontinued Businesses | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Gain or (loss) reclassified from AOCI into income | $ (866) | $ 998 | $ (1,277) | $ 1,586 |
Derivative Instruments, Hedgi_7
Derivative Instruments, Hedging Activities and Fair Value - Instrument Not Designated As Hedging Instrument (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Foreign currency exchange forward contracts | Cost of services and products sold | ||||
Derivative [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 4,862 | $ 18,234 | $ 1,565 | $ 22,072 |
Review of Operations by Segme_3
Review of Operations by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operations by segment | ||||
Revenues | $ 520,168 | $ 481,052 | $ 1,015,821 | $ 933,849 |
Operating income from continuing operations | 24,315 | (97,003) | 53,320 | (89,255) |
Interest income | 1,567 | 693 | 3,022 | 1,337 |
Interest expense | (25,724) | (16,692) | (50,052) | (31,784) |
Facility fees and debt-related income (expense) | (2,730) | 2,149 | (5,093) | 1,617 |
Defined benefit pension income (expense) | (5,407) | 2,247 | (10,742) | 4,657 |
Income (loss) from continuing operations before income taxes and equity income | (7,979) | (108,606) | (9,545) | (113,428) |
Depreciation | 34,457 | 67,496 | 66,067 | |
Depreciation Excluding Industrial Segment | 32,463 | 66,067 | ||
Amortization | 8,067 | 16,032 | 17,067 | |
Amortization, Excluding Discontinued Operations | 8,481 | 17,067 | ||
Capital Expenditures | 43,624 | 28,307 | 65,105 | 60,759 |
Operating Segments | ||||
Operations by segment | ||||
Operating income from continuing operations | 35,767 | (88,121) | 74,523 | (71,151) |
Operating Segments | Harsco Environmental Segment | ||||
Operations by segment | ||||
Revenues | 289,593 | 277,599 | 562,782 | 539,650 |
Operating income from continuing operations | 12,733 | 23,547 | 35,018 | 41,814 |
Depreciation | 28,354 | 27,467 | 55,914 | 55,539 |
Amortization | 1,008 | 1,714 | 2,007 | 3,542 |
Capital Expenditures | 38,540 | 23,585 | 55,091 | 48,375 |
Operating Segments | Clean Earth Segment | ||||
Operations by segment | ||||
Revenues | 230,575 | 203,453 | 453,039 | 394,199 |
Operating income from continuing operations | 23,034 | (111,668) | 39,505 | (112,965) |
Depreciation | 5,547 | 4,536 | 10,474 | 9,637 |
Amortization | 6,113 | 6,131 | 12,142 | 12,206 |
Capital Expenditures | 4,974 | 3,550 | 9,804 | 10,246 |
Corporate | ||||
Operations by segment | ||||
Operating income from continuing operations | (11,452) | (8,882) | (21,203) | (18,104) |
Depreciation | 556 | 460 | 1,108 | 891 |
Amortization | 946 | 636 | 1,883 | 1,319 |
Capital Expenditures | $ 110 | $ 1,172 | $ 210 | $ 2,138 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues by Primary Geographical Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 520,168 | $ 481,052 | $ 1,015,821 | $ 933,849 |
Environmental services related to resource recovery for metals manufacturing and related logistical services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 242,638 | 236,165 | 471,999 | 463,854 |
Ecoproducts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 40,504 | 38,083 | 78,906 | 70,048 |
Environmental systems for aluminum dross and scrap processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,451 | 3,351 | 11,877 | 5,748 |
Hazardous waste processing solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 197,506 | 170,817 | 383,618 | 329,824 |
Soil and dredged materials processing and reuse solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 33,069 | 32,636 | 69,421 | 64,375 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 312,191 | 284,162 | 613,128 | 545,987 |
Western Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 107,318 | 99,591 | 208,704 | 201,670 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 42,180 | 39,202 | 83,135 | 75,007 |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 32,339 | 31,950 | 61,300 | 60,018 |
Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 21,117 | 20,762 | 39,522 | 40,648 |
Eastern Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,023 | 5,385 | 10,032 | 10,519 |
Operating Segments | Harsco Environmental Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 289,593 | 277,599 | 562,782 | 539,650 |
Operating Segments | Harsco Environmental Segment | Environmental services related to resource recovery for metals manufacturing and related logistical services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 242,638 | 236,165 | 471,999 | 463,854 |
Operating Segments | Harsco Environmental Segment | Ecoproducts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 40,504 | 38,083 | 78,906 | 70,048 |
Operating Segments | Harsco Environmental Segment | Environmental systems for aluminum dross and scrap processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,451 | 3,351 | 11,877 | 5,748 |
Operating Segments | Harsco Environmental Segment | Hazardous waste processing solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Harsco Environmental Segment | Soil and dredged materials processing and reuse solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Harsco Environmental Segment | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 81,616 | 80,709 | 160,089 | 151,788 |
Operating Segments | Harsco Environmental Segment | Western Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 107,318 | 99,591 | 208,704 | 201,670 |
Operating Segments | Harsco Environmental Segment | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 42,180 | 39,202 | 83,135 | 75,007 |
Operating Segments | Harsco Environmental Segment | Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 32,339 | 31,950 | 61,300 | 60,018 |
Operating Segments | Harsco Environmental Segment | Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 21,117 | 20,762 | 39,522 | 40,648 |
Operating Segments | Harsco Environmental Segment | Eastern Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,023 | 5,385 | 10,032 | 10,519 |
Operating Segments | Clean Earth Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 230,575 | 203,453 | 453,039 | 394,199 |
Operating Segments | Clean Earth Segment | Environmental services related to resource recovery for metals manufacturing and related logistical services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Clean Earth Segment | Ecoproducts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Clean Earth Segment | Environmental systems for aluminum dross and scrap processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Clean Earth Segment | Hazardous waste processing solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 197,506 | 170,817 | 383,618 | 329,824 |
Operating Segments | Clean Earth Segment | Soil and dredged materials processing and reuse solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 33,069 | 32,636 | 69,421 | 64,375 |
Operating Segments | Clean Earth Segment | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 230,575 | 203,453 | 453,039 | 394,199 |
Operating Segments | Clean Earth Segment | Western Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Clean Earth Segment | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Clean Earth Segment | Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Clean Earth Segment | Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Clean Earth Segment | Eastern Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||
Total contract assets | $ 5.3 | $ 5.3 | |||
Total advances on contracts | 5.2 | 5.2 | $ 6.8 | ||
Revenue recognized | $ 2.2 | $ 7.7 | $ 5.5 | $ 10.5 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) - Harsco Environmental Segment $ in Millions | Jun. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 66.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 20.8 |
Period of expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 20.6 |
Period of expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 12.4 |
Period of expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 6.2 |
Period of expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Period of expected timing of satisfaction |
Other (Income) Expenses, Net (D
Other (Income) Expenses, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Employee termination benefit costs | $ 120 | $ 605 | $ 654 | $ 297 |
Other costs (income) for exit activities (a) | (2,353) | 477 | (8,560) | 1,058 |
Impaired asset write-downs | 0 | 296 | 0 | 355 |
Net gains | 0 | (92) | (230) | (1,904) |
Other | 10 | 759 | (238) | 1,060 |
Other (income) expenses, net | (2,223) | $ 2,045 | (8,374) | $ 866 |
Net gain | $ (3,000) | $ (9,800) |
Components of Accumulated Oth_3
Components of Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Beginning balance | $ 623,952 | $ 623,042 | $ 781,095 | $ 805,770 | $ 623,042 | $ 805,770 |
OCI before reclassifications | 12,190 | (26,117) | ||||
Amounts reclassified from AOCI, net of tax | 9,363 | 8,999 | ||||
Total other comprehensive income (loss) | 14,401 | 7,152 | (29,126) | 12,008 | 21,553 | (17,118) |
Less: OCI attributable to noncontrolling interests | 1,477 | 3,385 | ||||
OCI attributable to Enviri Corporation | 23,030 | (13,733) | ||||
Ending balance | 627,407 | 623,952 | 651,703 | 781,095 | 627,407 | 651,703 |
Cumulative Foreign Exchange Translation Adjustments | ||||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Beginning balance | (213,104) | (134,889) | (213,104) | (134,889) | ||
OCI before reclassifications | 23,035 | (61,493) | ||||
Amounts reclassified from AOCI, net of tax | 0 | 0 | ||||
Total other comprehensive income (loss) | 23,035 | (61,493) | ||||
Less: OCI attributable to noncontrolling interests | 1,477 | 3,385 | ||||
OCI attributable to Enviri Corporation | 24,512 | (58,108) | ||||
Ending balance | (188,592) | (192,997) | (188,592) | (192,997) | ||
Effective Portion of Derivatives Designated as Hedging Instruments | ||||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Beginning balance | 157 | (3,024) | 157 | (3,024) | ||
OCI before reclassifications | 1,554 | 1,692 | ||||
Amounts reclassified from AOCI, net of tax | 320 | 168 | ||||
Total other comprehensive income (loss) | 1,874 | 1,860 | ||||
Less: OCI attributable to noncontrolling interests | 0 | 0 | ||||
OCI attributable to Enviri Corporation | 1,874 | 1,860 | ||||
Ending balance | 2,031 | (1,164) | 2,031 | (1,164) | ||
Cumulative Unrecognized Actuarial Losses on Pension Obligations | ||||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Beginning balance | (354,699) | (422,248) | (354,699) | (422,248) | ||
OCI before reclassifications | (12,405) | 33,697 | ||||
Amounts reclassified from AOCI, net of tax | 9,043 | 8,831 | ||||
Total other comprehensive income (loss) | (3,362) | 42,528 | ||||
Less: OCI attributable to noncontrolling interests | 0 | 0 | ||||
OCI attributable to Enviri Corporation | (3,362) | 42,528 | ||||
Ending balance | (358,061) | (379,720) | (358,061) | (379,720) | ||
Unrealized Gain (Loss) on Marketable Securities | ||||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Beginning balance | 10 | 22 | 10 | 22 | ||
OCI before reclassifications | 6 | (13) | ||||
Amounts reclassified from AOCI, net of tax | 0 | 0 | ||||
Total other comprehensive income (loss) | 6 | (13) | ||||
Less: OCI attributable to noncontrolling interests | 0 | 0 | ||||
OCI attributable to Enviri Corporation | 6 | (13) | ||||
Ending balance | 16 | 9 | 16 | 9 | ||
Accumulated Other Comprehensive Loss | ||||||
Components of Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Beginning balance | (560,842) | (567,636) | (547,649) | (560,139) | (567,636) | (560,139) |
Total other comprehensive income (loss) | 16,236 | 6,794 | (26,223) | 12,490 | ||
Ending balance | $ (544,606) | $ (560,842) | $ (573,872) | $ (547,649) | $ (544,606) | $ (573,872) |
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 | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | $ 25,724 | $ 16,692 | $ 50,052 | $ 31,784 | ||
Income from continuing operations before income taxes | (7,979) | (108,606) | (9,545) | (113,428) | ||
Income tax expense (benefit) | 10,319 | (3,115) | 17,242 | (1,894) | ||
Net income (loss) | (15,838) | $ (8,590) | (104,496) | $ (38,680) | (24,428) | (143,176) |
Amount Reclassified from Accumulated Other Comprehensive Loss | Cash flow hedging intruments | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income from continuing operations before income taxes | 249 | 63 | 412 | 525 | ||
Income tax expense (benefit) | (53) | (233) | (92) | (357) | ||
Net income (loss) | 196 | (170) | 320 | 168 | ||
Amount Reclassified from Accumulated Other Comprehensive Loss | Cash flow hedging intruments | Foreign currency exchange forward contracts | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income (loss) from discontinued businesses | 866 | (998) | 1,277 | (1,586) | ||
Amount Reclassified from Accumulated Other Comprehensive Loss | Cash flow hedging intruments | Interest rate swaps | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest expense | (617) | 1,061 | (865) | 2,111 | ||
Amount Reclassified from Accumulated Other Comprehensive Loss | Defined benefit pension items | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income from continuing operations before income taxes | 4,844 | 4,609 | 9,628 | 9,456 | ||
Income tax expense (benefit) | (293) | (312) | (585) | (625) | ||
Net income (loss) | 4,551 | 4,297 | 9,043 | 8,831 | ||
Amount Reclassified from Accumulated Other Comprehensive Loss | Actuarial losses | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Defined benefit pension income (expense) | 4,729 | 4,496 | 9,399 | 9,223 | ||
Amount Reclassified from Accumulated Other Comprehensive Loss | Prior service costs | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Defined benefit pension income (expense) | $ 115 | $ 113 | $ 229 | $ 233 |