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BUSINESS COMBINATIONS | 6 Months Ended
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Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract] |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS 2022 Acquisition On June 17, 2022, the Company acquired a privately-owned company for an all-cash purchase price of approximately $73.8 million, net of cash acquired and subject to working capital adjustments. The operations of the newly acquired company expand the Safety-Kleen Sustainability Solutions segment's waste oil collection capabilities and re-refining business throughout the southeast region of the United States, including the addition of a re-refinery in Georgia. The preliminary allocation of the purchase price is provisional and was based on estimates of the fair value of assets acquired and liabilities assumed as of June 17, 2022. The Company continues to obtain information to complete the valuation of these balances and the associated income tax accounting. Measurement period adjustments will reflect new information obtained about facts and circumstances that existed as of the acquisition date. The following table summarizes the preliminary determination and recognition of assets acquired and liabilities assumed (in thousands):
| At June 17, 2022 |  |  |  |
Accounts receivable | $ | 1,079 |  |  |  |  |
Inventories and supplies | 5,737 |  |  |  |  |
Prepaid expenses and other current assets | 269 |  |  |  |  |
Property, plant and equipment | 23,270 |  |  |  |  |
Permits and other intangibles | 16,750 |  |  |  |  |
Operating lease right-of-use assets | 585 |  |  |  |  |
Other non-current assets | 42 |  |  |  |  |
Current liabilities | (2,756) |  |  |  |  |
Current portion of operating lease liabilities | (186) |  |  |  |  |
Operating lease liabilities, less current portion | (399) |  |  |  |  |
Total identifiable net assets | 44,391 |  |  |  |  |
Goodwill | 29,375 |  |  |  |  |
Total purchase price | $ | 73,766 |  |  |  |  |
Intangible assets acquired include supplier relationships, permits, customer relationships and trademarks/tradenames and are anticipated to have estimated useful lives of between five and 20 years with a weighted average useful life of approximately 17 years. The excess of the total purchase price, which includes the aggregate cash consideration paid in excess of the fair value of the tangible and intangible assets acquired, was recorded as goodwill. The goodwill recognized is attributable to the expected operating synergies, assembled workforce and growth potential that the Company expects to realize from the acquisition. Goodwill generated from the acquisition is deductible for tax purposes. The operations included in the Company's financial statements for the period ended June 30, 2022 and pro forma revenue and earnings amounts on a combined basis as if this acquisition had been completed on January 1, 2021 are immaterial to the consolidated financial statements of the Company. 2021 Acquisitions On October 8, 2021, the Company completed the acquisition of LJ Energy Services Intermediate Holding Corp. and its subsidiaries (collectively, “HydroChemPSC”), a privately-owned company, for an all-cash purchase price of approximately $1.23 billion. HydroChemPSC is a leading U.S. provider of industrial cleaning, specialty maintenance and utilities services. These operations enhance and have been integrated into the Company's Environmental Services segment. In the first quarter of 2022, the Company received $5.0 million after finalizing the acquisition date working capital balances, which decreased the overall purchase price. The allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of October 8, 2021. The Company continues to obtain information to complete the valuation of these balances and the associated income tax accounting. Measurement period adjustments reflect new information obtained about facts and circumstances that existed as of the acquisition date, including the adjustment for the monies received for the working capital finalization noted above. The components and allocation of the purchase price consist of the following amounts (in thousands):
| At Acquisition Date As Reported December 31, 2021 |  | Measurement Period Adjustments |  | At Acquisition Date As Reported June 30, 2022
Accounts receivable, including unbilled receivables | $ | 131,924 |  |  | $ | (395) |  |  | $ | 131,529 |
Inventories and supplies | 3,162 |  |  | — |  |  | 3,162 |
Prepaid expenses and other current assets | 16,016 |  |  | 363 |  |  | 16,379 |
Property, plant and equipment | 313,540 |  |  | — |  |  | 313,540 |
Other intangibles | 289,000 |  |  | — |  |  | 289,000 |
Operating lease right-of-use assets | 34,347 |  |  | 68 |  |  | 34,415 |
Other non-current assets | 1,045 |  |  | (60) |  |  | 985 |
Current liabilities | (115,704) |  |  | (883) |  |  | (116,587) |
Current portion of operating lease liabilities | (11,659) |  |  | 382 |  |  | (11,277) |
Operating lease liabilities, less current portion | (26,128) |  |  | (216) |  |  | (26,344) |
Deferred tax liabilities | (85,908) |  |  | 2,436 |  |  | (83,472) |
Other long-term liabilities | (2,685) |  |  | (242) |  |  | (2,927) |
Total identifiable net assets | 546,950 |  |  | 1,453 |  |  | 548,403 |
Goodwill (i) | 683,463 |  |  | (6,453) |  |  | 677,010 |
Total purchase price | $ | 1,230,413 |  |  | $ | (5,000) |  |  | $ | 1,225,413 |
_____________ (i) Goodwill represents the excess of the fair value of the net assets acquired over the purchase price. Goodwill of $677.0 million was assigned to the Environmental Sales & Service reporting unit and is attributable to the future economic benefits arising from the acquired operations, synergies and the acquired workforce of HydroChemPSC. None of the goodwill related to this acquisition will be deductible for tax purposes. HydroChemPSC's results of operations have been included in the Company's financial statements for the period subsequent to the completion of the acquisition on October 8, 2021. The following unaudited supplemental pro-forma data presents consolidated information as if the acquisition had occurred on January 1, 2021 (in thousands):
| Three Months Ended June 30, 2021 |  | Six Months Ended June 30, 2021
Pro forma combined revenues | $ | 1,121,121 |  |  | $ | 2,107,309 |
Pro forma combined net income | 74,526 |  |  | 102,078 |
The pro forma results do not include any costs incurred directly attributable to the acquisition of HydroChemPSC. The pro forma results do reflect impacts resulting from the issuance of $1.0 billion senior secured term loans issued in connection with the acquisition assuming interest rates in effect at the time of the acquisition. This pro forma financial information is not necessarily indicative of the Company's consolidated operating results that would have been reported had the transactions been completed as described herein, nor is such information necessarily indicative of the Company's consolidated results for any future period. Interest expense used in calculating the pro forma net income did not contemplate the interest rate swaps that the Company put in place in early 2022. On March 27, 2021, the Company also acquired a privately-owned business for $22.8 million cash consideration. The acquired company increases the Safety-Kleen Sustainability Solutions segment's network within the south central United States. In connection with this acquisition, a final goodwill amount of $16.3 million was recognized.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
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