GUARANTOR AND NON-GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION

The 2020 Notes and the 2021 Notes (collectively, the "Senior Unsecured Notes") and the Company's obligations under its Term Loan Agreement are guaranteed by substantially all of the Company’s subsidiaries organized in the United States. Each guarantor is a 100% owned subsidiary of Clean Harbors, Inc. and its guarantee is both full and unconditional and joint and several. The guarantees are, however, subject to customary release provisions under which, in particular, the guarantee of any domestic restricted subsidiary will be released if the Company sells such subsidiary to an unrelated third party in accordance with the terms of the indentures which govern the Senior Unsecured Notes and of the Term Loan Agreement. The Senior Unsecured Notes and the Company's obligations under its Term Loan Agreement are not guaranteed by the Company’s subsidiaries organized outside the United States. The following supplemental condensed consolidating financial information for the parent company, the guarantor subsidiaries and the non-guarantor subsidiaries, respectively, is presented in conformity with the requirements of Rule 3-10 of SEC Regulation S-X (“Rule 3-10”).

Following is the condensed consolidating balance sheet at March 31, 2018 (in thousands):



	Clean Harbors, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets:
Cash and cash equivalents	$	51,781	$	99,662	$	34,909	$	—		$	186,352
Short-term marketable securities	—		—		37,792		—			37,792
Intercompany receivables	244,228		600,975		63,875		(909,078		)	—
Accounts receivable, net	—		457,231		94,610		—			551,841
Other current assets	—		265,477		52,050		(13,690		)	303,837
Property, plant and equipment, net	—		1,249,417		382,231		—			1,631,648
Investments in subsidiaries	3,095,335		535,503		—		(3,630,838		)	—
Intercompany debt receivable	—		89,947		21,000		(110,947		)	—
Goodwill	—		431,574		61,131		—			492,705
Permits and other intangibles, net	—		407,887		56,748		—			464,635
Other long-term assets	1,938		12,385		1,695		(12		)	16,006
Total assets	$	3,393,282	$	4,150,058	$	806,041	$	(4,664,565	)	$	3,684,816
Liabilities and Stockholders’ Equity:
Current liabilities	$	22,210	$	382,937	$	133,227	$	(13,690	)	$	524,684
Intercompany payables	600,287		306,401		2,390		(909,078		)	—
Closure, post-closure and remedial liabilities, net	—		149,316		17,388		—			166,704
Long-term obligations, net	1,625,259		—		—		—			1,625,259
Intercompany debt payable	—		21,000		89,947		(110,947		)	—
Other long-term liabilities	—		201,053		21,602		(12		)	222,643
Total liabilities	2,247,756		1,060,707		264,554		(1,033,727		)	2,539,290
Stockholders’ equity	1,145,526		3,089,351		541,487		(3,630,838		)	1,145,526
Total liabilities and stockholders’ equity	$	3,393,282	$	4,150,058	$	806,041	$	(4,664,565	)	$	3,684,816

Following is the condensed consolidating balance sheet at December 31, 2017 (in thousands):



	Clean Harbors, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Total
Assets:
Cash and cash equivalents	$	51,638	$	207,777	$	59,984	$	—		$	319,399
Short-term marketable securities	—		—		38,179		—			38,179
Intercompany receivables	238,339		590,100		52,909		(881,348		)	—
Accounts receivable, net	—		433,042		95,882		—			528,924
Other current assets	897		233,602		52,947		(19,892		)	267,554
Property, plant and equipment, net	—		1,174,975		412,390		—			1,587,365
Investments in subsidiaries	3,112,547		569,568		—		(3,682,115		)	—
Intercompany debt receivable	—		92,530		21,000		(113,530		)	—
Goodwill	—		415,641		62,882		—			478,523
Permits and other intangibles, net	—		408,655		60,473		—			469,128
Other long-term assets	2,084		12,064		3,350		—			17,498
Total assets	$	3,405,505	$	4,137,954	$	859,996	$	(4,696,885	)	$	3,706,570
Liabilities and Stockholders’ Equity:
Current liabilities	$	16,954	$	371,135	$	135,620	$	(19,892	)	$	503,817
Intercompany payables	574,812		289,531		17,005		(881,348		)	—
Closure, post-closure and remedial liabilities, net	—		148,872		16,851		—			165,723
Long-term obligations, net	1,625,537		—		—		—			1,625,537
Intercompany debt payable	—		21,000		92,530		(113,530		)	—
Other long-term liabilities	—		201,086		22,205		—			223,291
Total liabilities	2,217,303		1,031,624		284,211		(1,014,770		)	2,518,368
Stockholders’ equity	1,188,202		3,106,330		575,785		(3,682,115		)	1,188,202
Total liabilities and stockholders’ equity	$	3,405,505	$	4,137,954	$	859,996	$	(4,696,885	)	$	3,706,570

Following is the consolidating statement of operations for the three months ended March 31, 2018 (in thousands):



	Clean Harbors, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues
Service revenues	$	—		$	481,483		$	152,401		$	(14,165	)	$	619,719
Product revenues	—			121,582			11,450			(2,973		)	130,059
Total revenues	—			603,065			163,851			(17,138		)	749,778
Cost of revenues (exclusive of items shown separately below)
Service cost of revenues	—			328,180			133,634			(14,165		)	447,649
Product cost of revenues	—			95,038			6,711			(2,973		)	98,776
Total cost of revenues	—			423,218			140,345			(17,138		)	546,425
Selling, general and administrative expenses	35			93,843			21,210			—			115,088
Accretion of environmental liabilities	—			2,176			254			—			2,430
Depreciation and amortization	—			53,704			21,140			—			74,844
(Loss) income from operations	(35		)	30,124			(19,098		)	—			10,991
Other expense, net	—			(85		)	(214		)	—			(299		)
Interest (expense) income, net	(20,999		)	505			224			—			(20,270		)
Equity in earnings of subsidiaries, net of taxes	2,514			(20,062		)	—			17,548			—
Intercompany interest income (expense)	—			1,361			(1,361		)	—			—
(Loss) income before (benefit) provision for income taxes	(18,520		)	11,843			(20,449		)	17,548			(9,578		)
(Benefit) provision for income taxes	(5,889		)	9,101			(159		)	—			3,053
Net (loss) income	(12,631		)	2,742			(20,290		)	17,548			(12,631		)
Other comprehensive loss	(16,746		)	(16,746		)	(14,007		)	30,753			(16,746		)
Comprehensive loss	$	(29,377	)	$	(14,004	)	$	(34,297	)	$	48,301		$	(29,377	)

Following is the consolidating statement of operations for the three months ended March 31, 2017 (in thousands):



	Clean Harbors, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Revenues
Service revenues	$	—		$	443,305		$	131,071		$	(14,162	)	$	560,214
Product revenues	—			116,650			15,331			(3,254		)	128,727
Total revenues	—			559,955			146,402			(17,416		)	688,941
Cost of revenues (exclusive of items shown separately below)
Service cost of revenues	—			294,145			111,104			(14,162		)	391,087
Product cost of revenues	—			96,505			12,247			(3,254		)	105,498
Total cost of revenues	—			390,650			123,351			(17,416		)	496,585
Selling, general and administrative expenses	24			92,171			20,026			—			112,221
Accretion of environmental liabilities	—			2,055			235			—			2,290
Depreciation and amortization	—			51,900			20,512			—			72,412
(Loss) income from operations	(24		)	23,179			(17,722		)	—			5,433
Other expense, net	(146		)	(1,389		)	(14		)	—			(1,549		)
Interest (expense) income, net	(22,659		)	119			(36		)	—			(22,576		)
Equity in earnings of subsidiaries, net of taxes	(7,637		)	(21,824		)	—			29,461			—
Intercompany interest income (expense)	—			1,297			(1,297		)	—			—
(Loss) income before (benefit) provision for income taxes	(30,466		)	1,382			(19,069		)	29,461			(18,692		)
(Benefit) provision for income taxes	(9,073		)	9,637			2,137			—			2,701
Net loss	(21,393		)	(8,255		)	(21,206		)	29,461			(21,393		)
Other comprehensive income	6,051			6,051			5,032			(11,083		)	6,051
Comprehensive loss	$	(15,342	)	$	(2,204	)	$	(16,174	)	$	18,378		$	(15,342	)

Following is the condensed consolidating statement of cash flows for the three months ended March 31, 2018 (in thousands):



	Clean Harbors, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash from (used in) operating activities	$	143		$	69,536		$	(17,776	)	$	—		$	51,903
Cash flows used in investing activities:
Additions to property, plant and equipment	—			(37,319		)	(6,923		)	—			(44,242		)
Proceeds from sale and disposal of fixed assets	—			292			506			—			798
Acquisitions, net of cash acquired	—			(120,000		)	—			—			(120,000		)
Additions to intangible assets, including costs to obtain or renew permits	—			(1,234		)	(11		)	—			(1,245		)
Proceeds from sale of available-for-sale securities	—			—			3,264			—			3,264
Purchases of available-for-sale securities	—			—			(3,003		)	—			(3,003		)
Intercompany	—			(15,812		)	—			15,812			—
Net cash used in investing activities	—			(174,073		)	(6,167		)	15,812			(164,428		)

Cash flows used in financing activities:
Change in uncashed checks	—			(3,578		)	(265		)	—			(3,843		)
Tax payments related to withholdings on vested restricted stock	(548		)	—			—			—			(548		)
Repurchases of common stock	(14,264		)	—			—			—			(14,264		)
Principal payment on debt	(1,000		)	—			—			—			(1,000		)
Intercompany	15,812			—			—			(15,812		)	—
Net cash used in financing activities	—			(3,578		)	(265		)	(15,812		)	(19,655		)
Effect of exchange rate change on cash	—			—			(867		)	—			(867		)
Increase (decrease) in cash and cash equivalents	143			(108,115		)	(25,075		)	—			(133,047		)
Cash and cash equivalents, beginning of period	51,638			207,777			59,984			—			319,399
Cash and cash equivalents, end of period	$	51,781		$	99,662		$	34,909		$	—		$	186,352

Following is the condensed consolidating statement of cash flows for the three months ended March 31, 2017 (in thousands):



	Clean Harbors, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Total
Net cash (used in) from operating activities	$	(1,663	)	$	41,144		$	17,638		$	—		$	57,119
Cash flows from (used in) investing activities:
Additions to property, plant and equipment	—			(33,136		)	(9,326		)	—			(42,462		)
Proceeds from sale and disposal of fixed assets	—			664			366			—			1,030
Acquisitions, net of cash acquired	—			(11,946		)	—			—			(11,946		)
Proceeds from sale of business	1,837			—			181			—			2,018
Additions to intangible assets, including costs to obtain or renew permits	—			(573		)	(178		)	—			(751		)
Proceeds from sale of investments	243			—			—			—			243
Intercompany	—			(7,771		)	—			7,771			—
Net cash from (used in) investing activities	2,080			(52,762		)	(8,957		)	7,771			(51,868		)

Cash flows used in financing activities:
Change in uncashed checks	—			(5,165		)	(2,392		)	—			(7,557		)
Proceeds from exercise of stock options	46			—			—			—			46
Tax payments related to withholdings on vested restricted stock	(1,021		)	—			—			—			(1,021		)
Repurchases of common stock	(6,796		)	—			—			—			(6,796		)
Deferred financing costs paid	(108		)	—			—			—			(108		)
Intercompany	7,771			—			—			(7,771		)	—
Net cash used in financing activities	(108		)	(5,165		)	(2,392		)	(7,771		)	(15,436		)
Effect of exchange rate change on cash	—			—			554			—			554
Increase (decrease) in cash and cash equivalents	309			(16,783		)	6,843			—			(9,631		)
Cash and cash equivalents, beginning of period	51,417			155,943			99,637			—			306,997
Cash and cash equivalents, end of period	$	51,726		$	139,160		$	106,480		$	—		$	297,366