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 second quarter of 2014, the Company reassigned certain departments among its operating segments consistent with management reporting changes as well as the identification of Lodging Services as an additional segment. Under the new structure, the Company's operations are managed in six reportable segments based primarily upon the nature of the various operations and services provided: Technical Services, Industrial and Field Services which consists of the Industrial Services and Field Services operating segments, Oil Re-refining and Recycling, SK Environmental Services, Lodging Services and Oil and Gas Field Services. The prior year segment information has been recast to conform to the current year presentation.

The following table reconciles third party revenues to direct revenues for the years ended December 31, 2014, 2013 and 2012 (in thousands).



	For the Year Ended December 31, 2014
	Technical Services		Industrial and Field Services			Oil Re-refining and Recycling			SK Environmental Services			Lodging Services		Oil and Gas Field Services			Corporate Items			Totals
Third party revenues	$	1,043,267	$	681,779		$	533,587		$	667,320		$	172,218	$	303,189		$	276		$	3,401,636
Intersegment revenues, net	156,543		(42,681		)	(201,859		)	80,477			2,434		5,086			—			—
Corporate Items, net	5,573		271			(5		)	(58		)	80		(5		)	(5,856		)	—
Direct revenues	$	1,205,383	$	639,369		$	331,723		$	747,739		$	174,732	$	308,270		$	(5,580	)	$	3,401,636



	For the Year Ended December 31, 2013
	Technical Services		Industrial and Field Services			Oil Re-refining and Recycling			SK Environmental Services		Lodging Services		Oil and Gas Field Services			Corporate Items			Totals
Third party revenues	$	1,023,926	$	708,523		$	528,636		$	665,008	$	208,545	$	383,959		$	(8,941	)	$	3,509,656
Intersegment revenues, net	120,382		(44,717		)	(193,009		)	107,007		3,450		6,887			—			—
Corporate Items, net	3,507		(217		)	—			84		390		(341		)	(3,423		)	—
Direct revenues	$	1,147,815	$	663,589		$	335,627		$	772,099	$	212,385	$	390,505		$	(12,364	)	$	3,509,656



	For the Year Ended December 31, 2012
	Technical Services		Industrial and Field Services			Oil Re-refining and Recycling		SK Environmental Services		Lodging Services		Oil and Gas Field Services			Corporate Items			Totals
Third party revenues	$	957,764	$	634,254		$	—	$	—	$	199,497	$	394,917		$	1,476		$	2,187,908
Intersegment revenues, net	31,637		(43,795		)	—		—		2,971		9,187			—			—
Corporate Items, net	2,295		(1		)	—		—		65		(489		)	(1,870		)	—
Direct revenues	$	991,696	$	590,458		$	—	$	—	$	202,533	$	403,615		$	(394	)	$	2,187,908

Third party revenue is revenue billed to outside customers by a particular segment. Direct revenue is revenue allocated to the segment performing the provided 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 negative intersegment revenues are due to more transfers out of customer revenues to other segments than transfers in of customer revenues from other segments. The operations not managed through the Company’s six reportable segments are recorded as “Corporate Items.” Corporate Items revenues consist of two different operations for which the revenues are insignificant. Corporate Items cost of revenues represents certain central services that are not allocated to the six segments for internal reporting purposes. Corporate Items selling, general and administrative expenses include typical corporate items such as legal, accounting and other items of a general corporate nature that are not allocated to the Company’s six reportable segments. Performance of the segments is evaluated on several factors, of which the primary financial measure is “Adjusted EBITDA,” which consists of net (loss) income plus accretion of environmental liabilities, depreciation and amortization, net interest expense, provision for income taxes, other non-cash charges (including goodwill impairment charge) not deemed representative of fundamental segment results and excludes other (income) expense. Transactions between the segments are accounted for at the Company’s best estimate based on similar

(17) SEGMENT REPORTING (Continued)

transactions with outside customers. The following table presents information used by management by reported segment (in thousands). The Company does not allocate interest expense, income taxes, depreciation, amortization, accretion of environmental liabilities, goodwill impairment charge, other (income) expense, and loss on early extinguishment of debt to segments.



	For the Year Ended December 31,
	2014			2013			2012
Adjusted EBITDA:
Technical Services	$	328,130		$	285,520		$	249,829
Industrial and Field Services	87,591			96,804			82,819
Oil Re-refining and Recycling	51,561			57,003			—
SK Environmental Services	113,986			112,722			—
Lodging Services	61,438			80,358			76,092
Oil and Gas Field Services	40,114			67,855			77,068
Corporate Items	(160,901		)	(190,157		)	(112,041		)
Total	521,919			510,105			373,767
Reconciliation to Consolidated Statements of (Loss) Income:
Pre-tax, non-cash acquisition accounting inventory adjustment	—			13,559			—
Accretion of environmental liabilities	10,612			11,541			9,917
Depreciation and amortization	276,083			264,449			161,646
Goodwill impairment charge	123,414			—			—
Income from operations	111,810			220,556			202,204
Other (income) expense	(4,380		)	(1,705		)	802
Loss on early extinguishment of debt	—			—			26,385
Interest expense, net of interest income	77,668			78,376			47,287
Income from operations before provision (benefit) for income taxes	$	38,522		$	143,885		$	127,730

Revenue, property, plant and equipment and intangible assets outside of the United States

For the year ended December 31, 2014, the Company generated $2,414.6 million or 71.0% of revenues in the United States and Puerto Rico, $982.1 million or 28.9% of revenues in Canada, and less than 1.0% of revenues in other international locations. For the year ended December 31, 2013, the Company generated $2,376.2 million or 67.7% of revenues in the United States and Puerto Rico, $1,125.0 million or 32.1% of revenues in Canada, and less than 1.0% of revenues in other international locations. For the year ended December 31, 2012, the Company generated $1,254.2 million or 57.3% of revenues in the United States and Puerto Rico, $933.0 million or 42.6% of revenues in Canada, and less than 1.0% of revenues in other international locations.

As of December 31, 2014, the Company had property, plant and equipment, net of depreciation and amortization of $1,558.8 million, and permits and other intangible assets of $530.1 million. Of these totals, $587.4 million or 37.7% of property, plant and equipment and $94.2 million or 17.8% of permits and other intangible assets were in Canada, with the balance being in the United States and Puerto Rico (except for insignificant assets in other foreign countries). As of December 31, 2013, the Company had property, plant and equipment, net of depreciation and amortization of $1,602.2 million, and permits and other intangible assets of $570.0 million. Of these totals, $652.0 million or 40.7% of property, plant and equipment and $110.8 million or 19.4% of permits and other intangible assets were in Canada, with the balance being in the United States and Puerto Rico (except for insignificant assets in other foreign countries).

(17) SEGMENT REPORTING (Continued)

The following table presents assets by reported segment and in the aggregate (in thousands).



	December 31, 2014		December 31, 2013
Property, plant and equipment, net
Technical Services	$	412,323	$	400,544
Industrial and Field Services	245,115		251,826
Oil Re-refining and Recycling	201,451		211,458
SK Environmental Services	240,078		239,650
Lodging Services	141,965		166,252
Oil and Gas Field Services	215,574		224,585
Corporate Items	102,328		107,855
Total property, plant and equipment, net	$	1,558,834	$	1,602,170
Intangible assets:
Technical Services
Goodwill	$	50,092	$	45,599
Permits and other intangibles, net	74,870		80,302
Total Technical Services	124,962		125,901
Industrial and Field Services
Goodwill	109,214		109,873
Permits and other intangibles, net	17,801		21,147
Total Industrial and Field Services	127,015		131,020
Oil Re-refining and Recycling
Goodwill	50,883		171,161
Permits and other intangibles, net	151,041		160,807
Total Oil Re-refining and Recycling Services	201,924		331,968
SK Environmental Services
Goodwill	173,873		172,309
Permits and other intangibles, net	252,897		265,106
Total SK Environmental Services	426,770		437,415
Lodging Services
Goodwill	34,863		35,512
Permits and other intangibles, net	10,744		14,730
Total Lodging Services	45,607		50,242
Oil and Gas Field Services
Goodwill	33,744		36,506
Permits and other intangibles, net	22,727		27,881
Total Oil and Gas Field Services	56,471		64,387
Total	$	982,749	$	1,140,933

(17) SEGMENT REPORTING (Continued)

The following table presents the total assets by reported segment (in thousands).



	December 31, 2014		December 31, 2013
Technical Services	$	756,169	$	699,675
Industrial and Field Services	392,652		410,233
Oil Re-Recycling and Refining	538,921		642,901
SK Environmental Services	731,072		774,756
Lodging Services	231,782		239,056
Oil and Gas Field Services	361,223		381,057
Corporate Items	692,459		806,000
Total	$	3,704,278	$	3,953,678

The following table presents the total assets by geographical area (in thousands).



	December 31, 2014		December 31, 2013
United States	$	2,572,494	$	2,684,686
Canada	1,128,458		1,266,505
Other foreign	3,326		2,487
Total	$	3,704,278	$	3,953,678