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GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETSIn connection with the Changes in Operating Segments discussed in Note 2 "Significant Accounting Policies," the Company changed its operating segments in accordance with ASC 280, Segment Reporting. In addition, the Company concluded that it now has three reporting units. The Environmental Services operating segment has two reporting units consisting of (i) Environmental Sales and Service which now includes the legacy Environmental Sales and Service reporting unit and certain operations previously included within Safety-Kleen Environmental Services including the core service offerings of containerized waste, parts washers and vacuum services and (ii) Environmental Facilities, unchanged from prior year. The Safety-Kleen Sustainability Solutions operating segment is a single reporting unit which includes the legacy Safety-Kleen Oil reporting unit and the remaining operations of the legacy Safety-Kleen Environmental Services reporting unit primarily consisting of collection services for waste oil, anti-freeze and used oil filters as well as the sale of bulk blended re-refined oil and other automotive related fluid finished products. The Company allocated goodwill to the newly identified reporting units using a relative fair value approach. The table below has been recast to align with this new presentation. The changes in goodwill for the years ended December 31, 2021 and 2020 were as follows (in thousands):
| Environmental Services |  | Safety-Kleen Sustainability Solutions |  | Totals
Balance at January 1, 2020 | $ | 401,680 |  |  | $ | 123,333 |  |  | $ | 525,013 |
Increase from current period acquisition | — |  |  | 1,439 |  |  | 1,439 |
Measurement period adjustments from prior period acquisitions | 23 |  |  | — |  |  | 23 |
Decrease from disposition of business | (674) |  |  | — |  |  | (674) |
Foreign currency translation | 889 |  |  | 333 |  |  | 1,222 |
Balance at December 31, 2020 | $ | 401,918 |  |  | $ | 125,105 |  |  | $ | 527,023 |
Increase from current period acquisitions | 683,463 |  |  | 16,349 |  |  | 699,812 |
Foreign currency translation | 153 |  |  | 54 |  |  | 207 |
Balance at December 31, 2021 | $ | 1,085,534 |  |  | $ | 141,508 |  |  | $ | 1,227,042 |
The Company regularly assesses goodwill for impairment when it is more likely than not that events or changes in the business environment ("triggering events") would reduce the fair value of a reporting unit below its carrying value. The Company did not identify any triggering events in the years presented. Goodwill impairment is also tested annually. The Company conducted its annual impairment test of goodwill as of December 31, 2021 and determined that no adjustment to the carrying value of goodwill for any reporting unit was then necessary because the fair values of the reporting units exceeded their respective carrying values. The fair value of all reporting units was determined using an income approach based upon estimates of future discounted cash flows. The resulting estimates of fair value were validated through the consideration of other factors such as the fair value of comparable companies to the reporting units and a reconciliation of the sum of all estimated fair values of the reporting units to the Company’s overall market capitalization. In all cases, the estimated fair values of the reporting units significantly exceeded the respective carrying values. Significant judgments and unobservable inputs, categorized as Level 3 in the fair value hierarchy, are inherent in the impairment tests performed and include assumptions about the amount and timing of expected future cash flows, growth rates, and the determination of appropriate discount rates. Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. The Company believes that the assumptions used in its impairment tests are reasonable, but variations in any of the assumptions may result in different measurements of fair values. The impacts of any adverse business and market conditions which may impact the overall performance of the Company's reporting units will continue to be monitored. If the Company's reporting units do not achieve the financial performance that the Company expects, or if there is a significant prolonged change in demand for our products and services, it is possible that goodwill impairment charges may result. There can therefore be no assurance that future events will not result in an impairment of goodwill. As of December 31, 2021 and 2020, the Company's finite-lived and indefinite-lived intangible assets consisted of the following (in thousands):
| December 31, 2021 |  |  |  | December 31, 2020
| Cost |  | Accumulated Amortization |  | Net |  |  |  | Cost |  | Accumulated Amortization |  | Net |  |
Permits | $ | 187,519 |  |  | $ | 102,408 |  |  | $ | 85,111 |  |  |  |  | $ | 183,766 |  |  | $ | 95,033 |  |  | $ | 88,733 |  |  |
Customer and supplier relationships | 576,474 |  |  | 214,776 |  |  | 361,698 |  |  |  |  | 382,083 |  |  | 211,895 |  |  | 170,188 |  |  |
Other intangible assets | 94,271 |  |  | 19,359 |  |  | 74,912 |  |  |  |  | 39,287 |  |  | 34,744 |  |  | 4,543 |  |  |
Total amortizable permits and other intangible assets | 858,264 |  |  | 336,543 |  |  | 521,721 |  |  |  |  | 605,136 |  |  | 341,672 |  |  | 263,464 |  |  |
Trademarks and trade names | 123,191 |  |  | — |  |  | 123,191 |  |  |  |  | 123,156 |  |  | — |  |  | 123,156 |  |  |
Total permits and other intangible assets | $ | 981,455 |  |  | $ | 336,543 |  |  | $ | 644,912 |  |  |  |  | $ | 728,292 |  |  | $ | 341,672 |  |  | $ | 386,620 |  |  |
The Company regularly monitors and assesses whether events or changes in circumstances relative to the Company's business might indicate that future cash flows attributable to the Company's asset groups may not be sufficient to recover the current value of those assets. During the periods presented, there were no events or changes in circumstances which would indicate that the carrying values of the Company's asset groups would not be recoverable and thus no impairment charge was recorded related to the Company's long-lived assets. If expectations of future cash flows were to decrease in the future as a result of worse than expected or prolonged periods of depressed activity, future impairments may become evident. Amortization expense of permits and other intangible assets for the years ended December 31, 2021, 2020 and 2019 were $34.7 million, $35.8 million and $35.2 million, respectively. During the year, the Company wrote off fully amortized intangible assets with a cost of $39.9 million during the year ended December 31, 2021. The expected amortization of the net carrying amount of finite-lived intangible assets at December 31, 2021 is as follows (in thousands):
Years ending December 31, | Expected Amortization
2022 | $ | 48,845 |
2023 | 44,595 |
2024 | 40,342 |
2025 | 38,485 |
2026 | 36,684 |
Thereafter | 312,770 |
| $ | 521,721 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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