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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING 
Segment reporting is prepared on the same basis that the Company’s chief operating decision maker (“CODM”), 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 and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months EndedThree Months Ended
September 30, 2024September 30, 2023
Third-Party RevenuesIntersegment Revenues (Expenses), netDirect RevenuesThird-Party RevenuesIntersegment Revenues (Expenses), netDirect Revenues
Environmental Services$1,287,650 $9,537 $1,297,187 $1,135,279 $11,084 $1,146,363 
Safety-Kleen Sustainability Solutions241,676 (9,537)232,139 230,305 (11,084)219,221 
Corporate Items96 — 96 112 — 112 
Total$1,529,422 $— $1,529,422 $1,365,696 $— $1,365,696 
Nine Months EndedNine Months Ended
September 30, 2024September 30, 2023
Third-Party RevenuesIntersegment Revenues (Expenses), netDirect RevenuesThird-Party RevenuesIntersegment Revenues (Expenses), netDirect Revenues
Environmental Services$3,746,227 $32,853 $3,779,080 $3,357,743 $31,397 $3,389,140 
Safety-Kleen Sustainability Solutions712,312 (32,853)679,459 712,905 (31,397)681,508 
Corporate Items297 — 297 335 — 335 
Total$4,458,836 $— $4,458,836 $4,070,983 $— $4,070,983 
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 EndedNine Months Ended
September 30,September 30,
 2024202320242023
Adjusted EBITDA:  
Environmental Services$332,502 $288,982 $956,892 $822,949 
Safety-Kleen Sustainability Solutions41,226 31,146 122,402 126,024 
Corporate Items(71,914)(65,111)(219,569)(191,312)
Total301,814 255,017 859,725 757,661 
Reconciliation to Consolidated Statements of Operations:  
Accretion of environmental liabilities3,618 3,388 10,139 10,281 
Stock-based compensation5,837 4,291 20,690 14,809 
Depreciation and amortization100,063 92,970 295,632 267,425 
Income from operations192,296 154,368 533,264 465,146 
Other expense (income), net1,123 (334)2,431 833 
Loss on early extinguishment of debt
— — — 2,362 
Interest expense, net of interest income35,779 29,696 100,767 80,400 
Income before provision for income taxes$155,394 $125,006 $430,066 $381,551