SEGMENT REPORTING

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

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. 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 and six months ended June 30, 2020 and June 30, 2019 (in thousands):

	For the Three Months Ended June 30, 2020								For the Three Months Ended June 30, 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	$	464,354	$	31,171	$	1,389	$	496,914	$	526,294	$	36,206	$	576	$	563,076
Safety-Kleen	245,590		(31,171)		137		214,556		342,182		(36,206)		8		305,984
Corporate Items	56		—		(1,526)		(1,470)		202		—		(584)		(382)
Total	$	710,000	$	—	$	—	$	710,000	$	868,678	$	—	$	—	$	868,678

	For the Six Months Ended June 30, 2020								For the Six Months Ended June 30, 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	$	992,458	$	68,334	$	2,484	$	1,063,276	$	999,992	$	70,281	$	1,825	$	1,072,098
Safety-Kleen	575,959		(68,334)		143		507,768		648,729		(70,281)		13		578,461
Corporate Items	146		—		(2,627)		(2,481)		796		—		(1,838)		(1,042)
Total	$	1,568,563	$	—	$	—	$	1,568,563	$	1,649,517	$	—	$	—	$	1,649,517

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				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Adjusted EBITDA:
Environmental Services	$	138,083	$	117,868	$	246,997	$	207,378
Safety-Kleen	46,589		79,459		107,737		134,252
Corporate Items	(49,192)		(47,502)		(96,664)		(90,142)
Total	135,480		149,825		258,070		251,488
Reconciliation to Consolidated Statements of Operations:
Accretion of environmental liabilities	2,766		2,560		5,327		5,134
Depreciation and amortization	72,494		74,217		147,027		149,572
Income from operations	60,220		73,048		105,716		96,782
Other expense (income), net	500		564		2,865		(2,419)
Loss on sale of businesses	184		—		3,258		—
Interest expense, net of interest income	18,654		20,215		37,441		39,979
Income before provision for income taxes	$	40,882	$	52,269	$	62,152	$	59,222

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

	June 30, 2020		December 31, 2019
Property, plant and equipment, net:
Environmental Services	$	904,626	$	939,352
Safety-Kleen	558,597		555,310
Corporate Items	90,585		93,489
Total property, plant and equipment, net	$	1,553,808	$	1,588,151
Goodwill and Permits and other intangibles, net:
Environmental Services
Goodwill	$	210,617	$	212,531
Permits and other intangibles, net	83,465		89,722
Total Environmental Services	294,082		302,253
Safety-Kleen
Goodwill	$	312,537	$	312,482
Permits and other intangibles, net	316,983		329,344
Total Safety-Kleen	629,520		641,826
Total	$	923,602	$	944,079

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

	June 30, 2020		December 31, 2019
United States	$	3,461,132	$	3,413,254
Canada and other foreign	616,497		695,650
Total	$	4,077,629	$	4,108,904