SEGMENT REPORTING

3 Months Ended

Mar. 31, 2020

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. The Company is managed and reports as two operating segments; (i) the Environmental Services segment and (ii) the Safety-Kleen 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 table reconciles third-party revenues to direct revenues for the three months ended March 31, 2020 and March 31, 2019 (in thousands):



	For the Three Months Ended March 31, 2020											For the Three Months Ended March 31, 2019
	Third-party revenues		Intersegment revenues, net			Corporate Items, net			Direct revenues			Third-party revenues		Intersegment revenues, net			Corporate Items, net			Direct revenues
Environmental Services	$	528,104	$	37,163		$	1,095		$	566,362		$	473,698	$	34,075		$	1,249		$	509,022
Safety-Kleen	330,369		(37,163		)	6			293,212			306,547		(34,075		)	5			272,477
Corporate Items	90		—			(1,101		)	(1,011		)	594		—			(1,254		)	(660		)
Total	$	858,563	$	—		$	—		$	858,563		$	780,839	$	—		$	—		$	780,839

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, depreciation and amortization, net interest expense, loss on early extinguishment of debt, provision for income taxes and other gains, losses or non-cash charges not deemed representative of fundamental segment results and other expense (income), 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
	March 31,
	2020			2019
Adjusted EBITDA:
Environmental Services	$	108,914		$	89,510
Safety-Kleen	61,148			54,793
Corporate Items	(47,472		)	(42,640		)
Total	122,590			101,663
Reconciliation to Consolidated Statements of Operations:
Accretion of environmental liabilities	2,561			2,574
Depreciation and amortization	74,533			75,355
Income from operations	45,496			23,734
Other expense (income), net	2,365			(2,983		)
Loss on sale of businesses	3,074			—
Interest expense, net of interest income	18,787			19,764
Income before provision for income taxes	$	21,270		$	6,953

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



	March 31, 2020		December 31, 2019
Property, plant and equipment, net:
Environmental Services	$	909,207	$	939,352
Safety-Kleen	552,879		555,310
Corporate Items	85,033		93,489
Total property, plant and equipment, net	$	1,547,119	$	1,588,151

Goodwill and Permits and other intangibles, net:
Environmental Services
Goodwill	$	209,713	$	212,531
Permits and other intangibles, net	85,165		89,722
Total Environmental Services	294,878		302,253

Safety-Kleen
Goodwill	$	309,914	$	312,482
Permits and other intangibles, net	321,716		329,344
Total Safety-Kleen	631,630		641,826

Total	$	926,508	$	944,079

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



	March 31, 2020		December 31, 2019
United States	$	3,521,439	$	3,413,254
Canada and other foreign	610,582		695,650
Total	$	4,132,021	$	4,108,904