SEGMENT REPORTING

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING 

Segment reporting is prepared on the same basis that the Company’s chief operating decision maker, which is a committee comprised of the Company’s Co-Chief Executive Officers, 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 Sustainability Solutions segment.

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 operations not managed through the Company’s operating segments described above are recorded as “Corporate Items.”

The following tables reconcile third-party revenues to direct revenues for the three months ended March 31, 2024 and 2023 (in thousands):

	Three Months Ended						Three Months Ended
	March 31, 2024						March 31, 2023
	Third-Party Revenues		Intersegment Revenues (Expenses), net		Direct Revenues		Third-Party Revenues		Intersegment Revenues (Expenses), net		Direct Revenues
Environmental Services	$	1,161,279	$	11,231	$	1,172,510	$	1,060,982	$	9,759	$	1,070,741
Safety-Kleen Sustainability Solutions	215,314		(11,231)		204,083		246,298		(9,759)		236,539
Corporate Items	102		—		102		107		—		107
Total	$	1,376,695	$	—	$	1,376,695	$	1,307,387	$	—	$	1,307,387

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, stock-based compensation, depreciation and amortization, net interest expense, loss on early extinguishment of debt and provision for income taxes and excludes other gains, losses and 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):

	Three Months Ended
	March 31,
	2024		2023
Adjusted EBITDA:
Environmental Services	$	264,475	$	228,345
Safety-Kleen Sustainability Solutions	29,700		41,463
Corporate Items	(64,080)		(54,670)
Total	230,095		215,138
Reconciliation to Consolidated Statements of Operations:
Accretion of environmental liabilities	3,217		3,407
Stock-based compensation	6,338		6,018
Depreciation and amortization	95,065		84,758
Income from operations	125,475		120,955
Other expense (income), net	1,141		(116)
Loss on early extinguishment of debt	—		2,362
Interest expense, net of interest income	28,539		20,632
Income before provision for income taxes	$	95,795	$	98,077