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SEGMENT REPORTING | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING Segment reporting is prepared on the same basis that the Company's chief executive officer, who is the Company's chief operating decision maker, manages the business, makes operating decisions and assesses performance. During the first quarter of fiscal year 2018, certain of the Company's businesses undertook a reorganization which included changes to the underlying business and management structures. The reorganization resulted in combining the Environmental Services businesses from an operational and management perspective, deepening customer relationships and allowing for efficiencies across the Company's operations through the sharing of resources, namely labor and equipment, which will reduce third party spending and promote cross selling of such business offerings. In connection with this reorganization, the Company’s chief operating decision maker requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance. These changes required a reconsideration of the Company’s operating segments in the first quarter of 2018 and resulted in a change in the Company’s assessment of its operating segments. Upon reconsideration of the identification of the Company’s operating segments, the Company concluded that there are now two operating segments for disclosure purposes; (i) the Environmental Services segment which consists of the Company’s historical Technical Services, Industrial Services, Field Services and Oil, Gas and Lodging businesses, and (ii) the Safety-Kleen segment. The amounts presented for the years ended December 31, 2017 and 2016 have been reclassified to conform to the new segment presentation. These reclassifications and adjustments had no effect on the consolidated statements of operations, consolidated statements of comprehensive income, consolidated statements of cash flows or consolidated statements of stockholders' equity for any of the periods presented. Third-party revenue is revenue billed to outside customers by a particular segment. Direct revenue is revenue allocated to the segment providing the product or service. Intersegment revenues represent the sharing of third-party revenues among the segments based on products and services provided by each segment as if the products and services were sold directly to the third-party. The intersegment revenues are shown net. The operations not managed through the Company’s operating segments described above are recorded as “Corporate Items.” (19) SEGMENT REPORTING (Continued) The following table reconciles third-party revenues to direct revenues for the years ended December 31, 2018, 2017 and 2016 (in thousands):
| For the Year Ended December 31, 2018
| Environmental Services |  | Safety-Kleen |  | Corporate Items |  | Totals
Third-party revenues | $ | 2,003,843 |  |  | $ | 1,295,355 |  |  | $ | 1,105 |  |  | $ | 3,300,303 |
Intersegment revenues, net | 134,104 |  |  | (134,104 | ) |  | — |  |  | — |
Corporate Items, net | 3,247 |  |  | 31 |  |  | (3,278 | ) |  | — |
Direct revenues | $ | 2,141,194 |  |  | $ | 1,161,282 |  |  | $ | (2,173 | ) |  | $ | 3,300,303 |
| For the Year Ended December 31, 2017
| Environmental Services |  | Safety-Kleen |  | Corporate Items |  | Totals
Third-party revenues | $ | 1,728,700 |  |  | $ | 1,213,703 |  |  | $ | 2,575 |  |  | $ | 2,944,978 |
Intersegment revenues, net | 125,822 |  |  | (125,822 | ) |  | — |  |  | — |
Corporate Items, net | 2,952 |  |  | 5 |  |  | (2,957 | ) |  | — |
Direct revenues | $ | 1,857,474 |  |  | $ | 1,087,886 |  |  | $ | (382 | ) |  | $ | 2,944,978 |
| For the Year Ended December 31, 2016
| Environmental Services |  | Safety-Kleen |  | Corporate Items |  | Totals
Third-party revenues | $ | 1,641,432 |  |  | $ | 1,110,727 |  |  | $ | 3,067 |  |  | $ | 2,755,226 |
Intersegment revenues, net | 115,013 |  |  | (115,013 | ) |  | — |  |  | — |
Corporate Items, net | 2,388 |  |  | 369 |  |  | (2,757 | ) |  | — |
Direct revenues | $ | 1,758,833 |  |  | $ | 996,083 |  |  | $ | 310 |  |  | $ | 2,755,226 |
The primary financial measure by which the Company evaluates the performance of its segments is Adjusted EBITDA, which consists of net income (loss) plus accretion of environmental liabilities, depreciation and amortization, net interest expense, loss on early extinguishment of debt, provision (benefit) for income taxes, other gains or non-cash charges (including gain on sale of businesses and goodwill impairment charge) not deemed representative of fundamental segment results and excludes other expense (income), net. Transactions between the segments are accounted for at the Company’s best estimate based on similar transactions with outside customers. (19) SEGMENT REPORTING (Continued) The following table presents Adjusted EBITDA information used by management by reported segment (in thousands):
| For the Year Ended December 31,
| 2018 |  | 2017 |  | 2016
Adjusted EBITDA: |  |  |  |  |
Environmental Services | $ | 380,856 |  |  | $ | 321,310 |  |  | $ | 319,075 |
Safety-Kleen | 282,029 |  |  | 249,811 |  |  | 219,546 |
Corporate Items | (171,880 | ) |  | (145,464 | ) |  | (138,267 | )
Total | 491,005 |  |  | 425,657 |  |  | 400,354 |
Reconciliation to Consolidated Statements of Operations: |  |  |  |  |
Accretion of environmental liabilities | 9,806 |  |  | 9,460 |  |  | 10,177 |
Depreciation and amortization | 298,625 |  |  | 288,422 |  |  | 287,002 |
Goodwill impairment charge | — |  |  | — |  |  | 34,013 |
Income from operations | 182,574 |  |  | 127,775 |  |  | 69,162 |
Other expense (income), net | 4,510 |  |  | 6,119 |  |  | (6,195 | )
Loss on early extinguishment of debt | 2,488 |  |  | 7,891 |  |  | — |
Gain on sale of businesses | — |  |  | (30,732 | ) |  | (16,884 | )
Interest expense, net of interest income | 81,094 |  |  | 85,808 |  |  | 83,525 |
Income from operations before provision (benefit) for income taxes | $ | 94,482 |  |  | $ | 58,689 |  |  | $ | 8,716 |
Geographical Information For the years ended December 31, 2018, 2017, and 2016, the Company generated direct revenues in the following geographic locations (in thousands):
| For the Year Ended December 31,
| 2018 |  | 2017 |  | 2016
| Revenue |  | % of Total |  | Revenue |  | % of Total |  | Revenue |  | % of Total
United States | $ | 2,721,814 |  |  | 82.5 | % |  | $ | 2,392,000 |  |  | 81.2 | % |  | $ | 2,213,355 |  |  | 80.3 | %
Canada | 578,489 |  |  | 17.5 | % |  | 552,978 |  |  | 18.8 | % |  | 541,871 |  |  | 19.7 | %
Total Revenues | $ | 3,300,303 |  |  | 100.0 | % |  | $ | 2,944,978 |  |  | 100.0 | % |  | $ | 2,755,226 |  |  | 100.0 | %
As of December 31, 2018 and 2017, the Company had property, plant and equipment, net of depreciation and amortization and permits and other intangible assets in the following geographic locations (in thousands):
| For the Year Ended December 31,
| 2018 |  | 2017
| Total |  | % of Total |  | Total |  | % of Total
Property, plant and equipment, net |  |  |  |  |  |  |
United States | $ | 1,233,949 |  |  | 79.0 | % |  | $ | 1,175,437 |  |  | 74.0 | %
Canada | 328,029 |  |  | 21.0 | % |  | 411,928 |  |  | 26.0 | %
Total property, plant and equipment, net | $ | 1,561,978 |  |  | 100.0 | % |  | $ | 1,587,365 |  |  | 100.0 | %
Permits and other intangibles, net |  |  |  |  |  |  |
United States | $ | 393,045 |  |  | 88.9 | % |  | $ | 408,654 |  |  | 87.1 | %
Canada | 48,830 |  |  | 11.1 | % |  | 60,474 |  |  | 12.9 | %
Total permits and other intangibles, net | $ | 441,875 |  |  | 100.0 | % |  | $ | 469,128 |  |  | 100.0 | %
(19) SEGMENT REPORTING (Continued) The following table presents assets by reported segment and in the aggregate (in thousands):
| December 31, 2018 |  | December 31, 2017
Property, plant and equipment, net |  |  |
Environmental Services | $ | 951,867 |  |  | $ | 927,139 |
Safety-Kleen | 553,220 |  |  | 582,162 |
Corporate Items | 56,891 |  |  | 78,064 |
Total property, plant and equipment, net | $ | 1,561,978 |  |  | $ | 1,587,365 |
Goodwill and Permits and other intangibles, net |  |  |
Environmental Services |  |  |
Goodwill | $ | 207,019 |  |  | $ | 172,386 |
Permits and other intangibles, net | 93,313 |  |  | 97,519 |
Total Environmental Services | 300,332 |  |  | 269,905 |
Safety-Kleen |  |  |
Goodwill | $ | 307,170 |  |  | $ | 306,137 |
Permits and other intangibles, net | 348,562 |  |  | 371,609 |
Total Safety-Kleen | 655,732 |  |  | 677,746 |
Total | $ | 956,064 |  |  | $ | 947,651 |
The following table presents the total assets by reported segment (in thousands):
| December 31, 2018 |  | December 31, 2017
Environmental Services | $ | 1,640,706 |  |  | $ | 1,541,241 |
Safety-Kleen | 1,431,381 |  |  | 1,471,291 |
Corporate Items | 666,234 |  |  | 694,038 |
Total | $ | 3,738,321 |  |  | $ | 3,706,570 |
The following table presents the total assets by geographical area (in thousands):
| December 31, 2018 |  | December 31, 2017
United States | $ | 3,090,311 |  |  | $ | 2,985,394 |
Canada | 648,010 |  |  | 721,176 |
Total | $ | 3,738,321 |  |  | $ | 3,706,570 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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