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SEGMENT REPORTING | 9 Months Ended
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Sep. 30, 2021
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. As described in the "Changes in Operating Segments" section of Note 2, "Significant Accounting Policies," during the first quarter of 2021, certain of the Company's businesses undertook a reorganization which included changes to the underlying business and management structures. The Company's chief operating decision maker also requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance so that the information would align with the new operating structure of the business. Due to these changes the Company reassessed its operating segment conclusions in the first quarter of 2021 which resulted in a change in the operating segments. The Company consolidated the core services of Safety-Kleen Environmental Services into its Environmental Services segment, eliminated its Safety-Kleen segment and created the Safety-Kleen Sustainability Solutions segment. In addition, certain intercompany transactions previously recorded as Corporate Items have been allocated to the segments. All the historical balances presented below have been recast to reflect the impact of these changes. Third-party revenue is revenue billed to outside customers by a particular segment. Direct revenues 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. Transactions between the segments are accounted for at the Company’s best estimate based on similar transactions with outside customers. The intersegment revenues are shown net. The operations not managed through the Company’s operating segments described above are recorded as “Corporate Items.” The following table reconciles third-party revenues to direct revenues for the three and nine months ended September 30, 2021 and September 30, 2020 (in thousands):
| For the Three Months Ended September 30, 2021 |  | For the Three Months Ended September 30, 2020
| Third-party revenues |  | Intersegment revenues, net |  |  |  | Direct revenues |  | Third-party revenues |  | Intersegment revenues, net |  | Direct revenues
Environmental Services | $ | 743,831 |  |  | $ | 1,802 |  |  |  |  | $ | 745,633 |  |  | $ | 651,689 |  |  | $ | (1,129) |  |  | $ | 650,560 |
Safety-Kleen Sustainability Solutions | 207,589 |  |  | (1,802) |  |  |  |  | 205,787 |  |  | 127,583 |  |  | 1,129 |  |  | 128,712 |
Corporate Items | 59 |  |  | — |  |  |  |  | 59 |  |  | 72 |  |  | — |  |  | 72 |
Total | $ | 951,479 |  |  | $ | — |  |  |  |  | $ | 951,479 |  |  | $ | 779,344 |  |  | $ | — |  |  | $ | 779,344 |
| For the Nine Months Ended September 30, 2021 |  | For the Nine Months Ended September 30, 2020
| Third-party revenues |  | Intersegment revenues, net |  |  |  | Direct revenues |  | Third-party revenues |  | Intersegment revenues, net |  | Direct revenues
Environmental Services | $ | 2,119,856 |  |  | $ | 4,476 |  |  |  |  | $ | 2,124,332 |  |  | $ | 1,969,445 |  |  | $ | (1,099) |  |  | $ | 1,968,346 |
Safety-Kleen Sustainability Solutions | 566,012 |  |  | (4,476) |  |  |  |  | 561,536 |  |  | 378,244 |  |  | 1,099 |  |  | 379,343 |
Corporate Items | 217 |  |  | — |  |  |  |  | 217 |  |  | 218 |  |  | — |  |  | 218 |
Total | $ | 2,686,085 |  |  | $ | — |  |  |  |  | $ | 2,686,085 |  |  | $ | 2,347,907 |  |  | $ | — |  |  | $ | 2,347,907 |
The primary financial measure by which the Company evaluates the performance of its segments is "Adjusted EBITDA," which consists of net income plus accretion of environmental liabilities, stock-based compensation, depreciation and amortization, net interest expense, loss on early extinguishment of debt, provision for income taxes and excludes other gains, losses or non-cash charges not deemed representative of fundamental segment results and other expense, net. Beginning in the first quarter of 2021, we revised our calculation of reported Adjusted EBITDA to add stock-based compensation, a non-cash item, to other charges which are added back to net income determined in accordance with generally accepted accounting principles ("GAAP") for purposes of calculating Adjusted EBITDA. The amount added back each period matches the line item for stock-based compensation as recorded on the consolidated statements of cash flows. All relevant prior period Adjusted EBITDA amounts were recast to provide comparative information. The following table presents Adjusted EBITDA information used by management by reported segment (in thousands):
| For the Three Months Ended |  | For the Nine Months Ended
| September 30, |  | September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Adjusted EBITDA: |  |  |  |  |  |  |
Environmental Services | $ | 166,471 |  |  | $ | 180,002 |  |  | $ | 482,766 |  |  | $ | 502,101 |
Safety-Kleen Sustainability Solutions | 70,810 |  |  | 29,613 |  |  | 165,756 |  |  | 62,248 |
Corporate Items | (52,197) |  |  | (41,782) |  |  | (146,216) |  |  | (132,369) |
Total | 185,084 |  |  | 167,833 |  |  | 502,306 |  |  | 431,980 |
Reconciliation to Consolidated Statements of Operations: |  |  |  |  |  |  |
Accretion of environmental liabilities | 2,799 |  |  | 2,822 |  |  | 8,625 |  |  | 8,149 |
Stock-based compensation | 6,001 |  |  | 6,662 |  |  | 12,786 |  |  | 12,739 |
Depreciation and amortization | 71,451 |  |  | 74,470 |  |  | 215,206 |  |  | 221,497 |
Income from operations | 104,833 |  |  | 83,879 |  |  | 265,689 |  |  | 189,595 |
Other (income) expense, net | (199) |  |  | (2,268) |  |  | 2,509 |  |  | 597 |
Loss on sale of businesses | — |  |  | 118 |  |  | — |  |  | 3,376 |
Interest expense, net of interest income | 17,984 |  |  | 17,407 |  |  | 53,953 |  |  | 54,848 |
Income before provision for income taxes | $ | 87,048 |  |  | $ | 68,622 |  |  | $ | 209,227 |  |  | $ | 130,774 |
The following table presents certain assets by reportable segment and in the aggregate (in thousands):
| September 30, 2021 |  | December 31, 2020
Property, plant and equipment, net: |  |  |
Environmental Services | $ | 1,050,901 |  |  | $ | 1,068,910 |
Safety-Kleen Sustainability Solutions | 363,857 |  |  | 366,160 |
Corporate Items | 93,598 |  |  | 90,228 |
Total property, plant and equipment, net | $ | 1,508,356 |  |  | $ | 1,525,298 |
Goodwill and Permits and other intangibles, net: |  |  |
Environmental Services |  |  |
Goodwill | $ | 402,025 |  |  | $ | 401,918 |
Permits and other intangibles, net | 217,188 |  |  | 228,237 |
Total Environmental Services | 619,213 |  |  | 630,155 |
Safety-Kleen Sustainability Solutions |  |  |
Goodwill | $ | 141,003 |  |  | $ | 125,105 |
Permits and other intangibles, net | 149,309 |  |  | 158,383 |
Total Safety-Kleen Sustainability Solutions | 290,312 |  |  | 283,488 |
Total | $ | 909,525 |  |  | $ | 913,643 |
The following table presents the total assets by geographical area (in thousands):
| September 30, 2021 |  | December 31, 2020
United States | $ | 3,629,056 |  |  | $ | 3,447,811 |
Canada and other foreign | 725,243 |  |  | 683,709 |
Total | $ | 4,354,299 |  |  | $ | 4,131,520 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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