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 nine months ended September 30, 2017 and 2016 (in thousands):



	For the Three Months Ended September 30, 2017											For the Three Months Ended September 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	$	246,329	$	41,366		$	637		$	288,332		$	232,482	$	38,795		$	492		$	271,769
Industrial and Field Services	163,808		(10,262		)	45			153,591			172,191		(10,867		)	(32		)	161,292
Safety-Kleen	315,028		(31,757		)	3			283,274			297,082		(28,716		)	1			268,367
Oil, Gas and Lodging Services	30,026		653			79			30,758			27,644		788			105			28,537
Corporate Items	655		—			(764		)	(109		)	121		—			(566		)	(445		)
Total	$	755,846	$	—		$	—		$	755,846		$	729,520	$	—		$	—		$	729,520



	For the Nine Months Ended September 30, 2017											For the Nine Months Ended September 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	$	731,034	$	121,411		$	1,767		$	854,212		$	680,717	$	109,217		$	1,547		$	791,481
Industrial and Field Services	465,264		(27,688		)	16			437,592			467,019		(25,464		)	(348		)	441,207
Safety-Kleen	910,885		(95,465		)	4			815,424			821,758		(86,329		)	368			735,797
Oil, Gas and Lodging Services	89,403		1,742			218			91,363			91,555		2,576			288			94,419
Corporate Items	989		—			(2,005		)	(1,016		)	2,064		—			(1,855		)	209
Total	$	2,197,575	$	—		$	—		$	2,197,575		$	2,063,113	$	—		$	—		$	2,063,113

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, goodwill impairment charge, provision for income taxes and excludes (loss) 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 Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Adjusted EBITDA:
Technical Services	$	72,338		$	72,333		$	203,906		$	201,622
Industrial and Field Services	13,255			18,234			36,652			38,627
Safety-Kleen	70,305			70,053			182,953			165,342
Oil, Gas and Lodging Services	912			24			969			135
Corporate Items	(33,811		)	(33,993		)	(100,655		)	(101,310		)
Total	$	122,999		$	126,651		$	323,825		$	304,416
Reconciliation to Consolidated Statements of Operations:
Accretion of environmental liabilities	2,347			2,476			7,053			7,529
Depreciation and amortization	72,989			73,360			216,932			215,655
Goodwill impairment charge	—			34,013			—			34,013
Income from operations	47,663			16,802			99,840			47,219
Other expense	432			198			2,814			737
Loss on early extinguishment of debt	1,846			—			7,891			—
Loss (gain) on sale of business	77			(16,431		)	(31,645		)	(16,431		)
Interest expense, net of interest income	20,675			21,565			65,743			62,192
Income before provision for income taxes	$	24,633		$	11,470		$	55,037		$	721

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



	September 30, 2017
	Technical Services		Industrial and Field Services		Safety-Kleen		Oil, Gas and Lodging Services		Corporate Items		Totals
Property, plant and equipment, net	$	507,069	$	264,662	$	585,493	$	177,106	$	77,641	$	1,611,971
Goodwill	60,154		112,365		306,209		—		—		478,728
Permits and other intangibles, net	75,260		17,139		377,458		7,782		—		477,639
Total assets	$	848,578	$	485,297	$	1,475,764	$	239,308	$	699,406	$	3,748,353



	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):



	September 30, 2017		December 31, 2016
United States	$	3,005,644	$	2,960,337
Canada	742,709		721,583
Total	$	3,748,353	$	3,681,920