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 its business, makes operating decisions and assesses performance. The Company's operations are managed in six operating segments: Technical Services, Industrial Services, Field Services, Safety-Kleen, Oil and Gas Field Services and Lodging Services. For purposes of segment disclosure the Industrial Services and Field Services operating segments have been aggregated into a single reportable segment based upon their similar economic and other characteristics, and the Oil and Gas Field Services and Lodging Services operating segments have been combined as they do not meet the quantitative thresholds for separate presentation.

Third-party revenue is revenue billed to outside customers by a particular segment. Direct revenue 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 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 operating segments described above 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 Company's operating 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 operating segments.

The following table reconciles third party revenues to direct revenues for the three and six months ended June 30, 2017 and 2016 (in thousands):



	For the Three Months Ended June 30, 2017											For the Three Months Ended June 30, 2016
	Third party revenues		Intersegment revenues, net			Corporate Items, net			Direct revenues			Third party revenues		Intersegment revenues, net			Corporate Items, net			Direct revenues
Technical Services	$	254,487	$	40,001		$	408		$	294,896		$	229,130	$	35,578		$	667		$	265,375
Industrial and Field Services	167,899		(9,067		)	(133		)	158,699			164,641		(7,922		)	(303		)	156,416
Safety-Kleen	302,956		(31,639		)	(2		)	271,315			277,715		(29,092		)	1			248,624
Oil, Gas and Lodging Services	27,245		705			45			27,995			24,860		1,436			79			26,375
Corporate Items	201		—			(318		)	(117		)	1,164		—			(444		)	720
Total	$	752,788	$	—		$	—		$	752,788		$	697,510	$	—		$	—		$	697,510



	For the Six Months Ended June 30, 2017											For the Six Months Ended June 30, 2016
	Third party revenues		Intersegment revenues, net			Corporate Items, net			Direct revenues			Third party revenues		Intersegment revenues, net			Corporate Items, net			Direct revenues
Technical Services	$	484,705	$	80,045		$	1,130		$	565,880		$	448,235	$	70,422		$	1,055		$	519,712
Industrial and Field Services	301,456		(17,426		)	(29		)	284,001			294,828		(14,597		)	(316		)	279,915
Safety-Kleen	595,857		(63,708		)	1			532,150			524,676		(57,613		)	367			467,430
Oil, Gas and Lodging Services	59,377		1,089			139			60,605			63,911		1,788			183			65,882
Corporate Items	334		—			(1,241		)	(907		)	1,943		—			(1,289		)	654
Total	$	1,441,729	$	—		$	—		$	1,441,729		$	1,333,593	$	—		$	—		$	1,333,593

The primary financial measure by which the Company evaluates the performance of its segments is "Adjusted EBITDA" which consists of net income (loss) plus accretion of environmental liabilities, depreciation and amortization, other expense, interest expense, net, loss on early extinguishment of debt, provision for income taxes and excludes gain on sale of business. 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,
	2017			2016			2017			2016
Adjusted EBITDA:
Technical Services	$	73,080		$	68,891		$	131,567		$	129,289
Industrial and Field Services	21,484			19,960			23,397			20,393
Safety-Kleen	60,281			55,234			112,649			95,289
Oil, Gas and Lodging Services	268			(1,199		)	58			111
Corporate Items	(34,422		)	(32,441		)	(66,845		)	(67,317		)
Total	$	120,691		$	110,445		$	200,826		$	177,765
Reconciliation to Consolidated Statements of Operations:
Accretion of environmental liabilities	2,416			2,548			4,706			5,053
Depreciation and amortization	71,531			73,393			143,943			142,295
Income from operations	46,744			34,504			52,177			30,417
Other expense	833			189			2,382			539
Loss on early extinguishment of debt	6,045			—			6,045			—
Gain on sale of business	(31,722		)	—			(31,722		)	—
Interest expense, net of interest income	22,492			21,647			45,068			40,627
Income (loss) before provision for income taxes	$	49,096		$	12,668		$	30,404		$	(10,749	)

The following table presents certain assets by reportable segment and in the aggregate (in thousands):



	June 30, 2017
	Technical Services		Industrial and Field Services		Safety-Kleen		Oil, Gas and Lodging Services		Corporate Items		Totals
Property, plant and equipment, net	$	512,058	$	243,195	$	590,282	$	181,001	$	75,917	$	1,602,453
Goodwill	59,973		108,583		304,263		—		—		472,819
Permits and other intangibles, net	76,022		17,135		381,020		8,651		—		482,828
Total assets	$	851,852	$	457,253	$	1,477,660	$	246,195	$	773,322	$	3,806,282



	December 31, 2016
	Technical Services		Industrial and Field Services		Safety-Kleen		Oil, Gas and Lodging Services		Corporate Items		Totals
Property, plant and equipment, net	$	521,134	$	245,143	$	584,647	$	182,038	$	78,865	$	1,611,827
Goodwill	61,116		107,968		296,070		—		—		465,154
Permits and other intangibles, net	78,625		17,817		391,390		10,889		—		498,721
Total assets	$	862,957	$	446,826	$	1,474,755	$	253,242	$	644,140	$	3,681,920

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



	June 30, 2017		December 31, 2016
United States	$	3,088,199	$	2,960,337
Canada	718,083		721,583
Total	$	3,806,282	$	3,681,920