XML 197 R26.htm IDEA: XBRL DOCUMENT
v3.23.2

SEGMENT REPORTING | 6 Months Ended
--- | ---
Jun. 30, 2023
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING Segment reporting is prepared on the same basis that the Company's chief operating decision maker, which is a committee comprised of the Company's co-Chief Executive Officers, manages the business, makes operating decisions and assesses performance. The Company is managed and reports as two operating segments; (i) the Environmental Services segment and (ii) the Safety-Kleen Sustainability Solutions segment. 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. 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 tables reconcile third-party revenues to direct revenues for the three and six months ended June 30, 2023 and 2022 (in thousands):
| For the Three Months Ended |  | For the Three Months Ended
| June 30, 2023 |  | June 30, 2022
| Third-Party Revenues |  | Intersegment Revenues (Expenses), net |  |  |  | Direct Revenues |  | Third-Party Revenues |  | Intersegment Revenues (Expenses), net |  |  |  | Direct Revenues
Environmental Services | $ | 1,161,482 |  |  | $ | 10,554 |  |  |  |  | $ | 1,172,036 |  |  | $ | 1,084,506 |  |  | $ | 6,237 |  |  |  |  | $ | 1,090,743 |
Safety-Kleen Sustainability Solutions | 236,302 |  |  | (10,554) |  |  |  |  | 225,748 |  |  | 271,727 |  |  | (6,237) |  |  |  |  | 265,490 |
Corporate Items | 116 |  |  | — |  |  |  |  | 116 |  |  | 79 |  |  | — |  |  |  |  | 79 |
Total | $ | 1,397,900 |  |  | $ | — |  |  |  |  | $ | 1,397,900 |  |  | $ | 1,356,312 |  |  | $ | — |  |  |  |  | $ | 1,356,312 |
| For the Six Months Ended |  | For the Six Months Ended
| June 30, 2023 |  | June 30, 2022
| Third-Party Revenues |  | Intersegment Revenues (Expenses), net |  |  |  | Direct Revenues |  | Third-Party Revenues |  | Intersegment Revenues (Expenses), net |  | Direct Revenues
Environmental Services | $ | 2,222,464 |  |  | $ | 20,313 |  |  |  |  | $ | 2,242,777 |  |  | $ | 2,025,304 |  |  | $ | 12,884 |  |  | $ | 2,038,188 |
Safety-Kleen Sustainability Solutions | 482,600 |  |  | (20,313) |  |  |  |  | 462,287 |  |  | 499,966 |  |  | (12,884) |  |  | 487,082 |
Corporate Items | 223 |  |  | — |  |  |  |  | 223 |  |  | 151 |  |  | — |  |  | 151 |
Total | $ | 2,705,287 |  |  | $ | — |  |  |  |  | $ | 2,705,287 |  |  | $ | 2,525,421 |  |  | $ | — |  |  | $ | 2,525,421 |
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 and provision for income taxes and excludes other gains, losses and non-cash charges not deemed representative of fundamental segment results and other income (expense), net. Transactions between the segments are accounted for at the Company’s best estimate based on similar transactions with outside customers. The following table presents Adjusted EBITDA information used by management by reported segment (in thousands):
| For the Three Months Ended |  | For the Six Months Ended
| June 30, |  | June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Adjusted EBITDA: |  |  |  |  |  |  |
Environmental Services | $ | 305,622 |  |  | $ | 269,341 |  |  | $ | 533,967 |  |  | $ | 452,943 |
Safety-Kleen Sustainability Solutions | 53,415 |  |  | 97,010 |  |  | 94,878 |  |  | 148,887 |
Corporate Items | (71,531) |  |  | (57,281) |  |  | (126,201) |  |  | (112,501) |
Total | 287,506 |  |  | 309,070 |  |  | 502,644 |  |  | 489,329 |
Reconciliation to Consolidated Statements of Operations: |  |  |  |  |  |  |
Accretion of environmental liabilities | 3,486 |  |  | 3,197 |  |  | 6,893 |  |  | 6,353 |
Stock-based compensation | 4,500 |  |  | 6,835 |  |  | 10,518 |  |  | 12,547 |
Depreciation and amortization | 89,697 |  |  | 87,868 |  |  | 174,455 |  |  | 172,166 |
Income from operations | 189,823 |  |  | 211,170 |  |  | 310,778 |  |  | 298,263 |
Other expense (income), net | 1,283 |  |  | (1,265) |  |  | 1,167 |  |  | (1,969) |
Loss on early extinguishment of debt | — |  |  | — |  |  | 2,362 |  |  | — |
Gain on sale of business | — |  |  | (8,864) |  |  | — |  |  | (8,864) |
Interest expense, net of interest income | 30,072 |  |  | 26,256 |  |  | 50,704 |  |  | 51,273 |
Income before provision for income taxes | $ | 158,468 |  |  | $ | 195,043 |  |  | $ | 256,545 |  |  | $ | 257,823 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration