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's operations are managed in six reportable segments based primarily upon the nature of the various operations and services provided: Technical Services, Industrial and Field Services which consists of the Industrial Services and Field Services operating segments, Kleen Performance Products, SK Environmental Services, Lodging Services and Oil and Gas Field Services.

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 negative intersegment revenues are due to more transfers out of customer revenues to other segments than transfers in of customer revenues from other segments. The operations not managed through the Company’s six reportable segments are recorded as “Corporate Items.” Corporate Items revenues consist of two different operations for which the revenues are insignificant. Corporate Items cost of revenues represents certain central services that are not allocated to the six segments for internal reporting purposes. Corporate Items selling, general and administrative expenses include typical corporate items such as legal, accounting and other items of a general corporate nature that are not allocated to the Company’s six reportable segments. Performance of the segments is evaluated on several factors, of which the primary financial measure is “Adjusted EBITDA,” which consists of net income (loss) plus accretion of environmental liabilities, depreciation and amortization, net interest expense, provision for income taxes, other non-cash charges (including goodwill impairment charge) not deemed representative of fundamental segment results and excludes other expense (income). Transactions between the segments are accounted for at the Company’s best estimate based on similar transactions with outside customers.

(17) SEGMENT REPORTING (Continued)

The following table reconciles third party revenues to direct revenues for the years ended December 31, 2015, 2014 and 2013 (in thousands).



	For the Year Ended December 31, 2015
	Technical Services		Industrial and Field Services			Kleen Performance Products			SK Environmental Services			Lodging Services		Oil and Gas Field Services		Corporate Items			Totals
Third party revenues	$	991,410	$	957,337		$	386,824		$	674,102		$	89,060	$	175,946	$	458		$	3,275,137
Intersegment revenues, net	144,084		(32,982		)	(79,991		)	(39,241		)	2,496		5,634		—			—
Corporate Items, net	3,586		(756		)	(8		)	3			157		200		(3,182		)	—
Direct revenues	$	1,139,080	$	923,599		$	306,825		$	634,864		$	91,713	$	181,780	$	(2,724	)	$	3,275,137



	For the Year Ended December 31, 2014
	Technical Services		Industrial and Field Services			Kleen Performance Products			SK Environmental Services			Lodging Services		Oil and Gas Field Services			Corporate Items			Totals
Third party revenues	$	1,043,267	$	681,779		$	533,587		$	667,320		$	172,218	$	303,189		$	276		$	3,401,636
Intersegment revenues, net	156,543		(42,681		)	(201,859		)	80,477			2,434		5,086			—			—
Corporate Items, net	5,573		271			(5		)	(58		)	80		(5		)	(5,856		)	—
Direct revenues	$	1,205,383	$	639,369		$	331,723		$	747,739		$	174,732	$	308,270		$	(5,580	)	$	3,401,636



	For the Year Ended December 31, 2013
	Technical Services		Industrial and Field Services			Kleen Performance Products			SK Environmental Services		Lodging Services		Oil and Gas Field Services			Corporate Items			Totals
Third party revenues	$	1,023,926	$	708,523		$	528,636		$	665,008	$	208,545	$	383,959		$	(8,941	)	$	3,509,656
Intersegment revenues, net	120,382		(44,717		)	(193,009		)	107,007		3,450		6,887			—			—
Corporate Items, net	3,507		(217		)	—			84		390		(341		)	(3,423		)	—
Direct revenues	$	1,147,815	$	663,589		$	335,627		$	772,099	$	212,385	$	390,505		$	(12,364	)	$	3,509,656

(17) SEGMENT REPORTING (Continued)

The following table presents Adjusted EBITDA information used by management by reported segment (in thousands). The Company does not allocate interest expense, income taxes, depreciation, amortization, accretion of environmental liabilities, other non-cash charges not deemed representative of fundamental segment results and other expense (income) to its segments.



	For the Year Ended December 31,
	2015			2014			2013
Adjusted EBITDA:
Technical Services	$	291,737		$	328,130		$	285,520
Industrial and Field Services	157,500			87,591			96,804
Kleen Performance Products	32,189			51,561			57,003
SK Environmental Services	140,073			113,986			112,722
Lodging Services	16,478			61,438			80,358
Oil and Gas Field Services	(827		)	40,114			67,855
Corporate Items	(132,983		)	(160,901		)	(190,157		)
Total	504,167			521,919			510,105
Reconciliation to Consolidated Statements of Income (Loss):
Pre-tax, non-cash acquisition accounting inventory adjustment	—			—			13,559
Accretion of environmental liabilities	10,402			10,612			11,541
Depreciation and amortization	274,194			276,083			264,449
Goodwill impairment charge	31,992			123,414			—
Income from operations	187,579			111,810			220,556
Other expense (income)	1,380			(4,380		)	(1,705		)
Interest expense, net of interest income	76,553			77,668			78,376
Income from operations before provision for income taxes	$	109,646		$	38,522		$	143,885

Revenue, property, plant and equipment and intangible assets outside of the United States

For the year ended December 31, 2015, the Company generated $2,576.2 million or 78.7% of revenues in the United States and Puerto Rico, $695.0 million or 21.2% of revenues in Canada, and less than 1.0% of revenues in other international locations. For the year ended December 31, 2014, the Company generated $2,414.6 million or 71.0% of revenues in the United States and Puerto Rico, $982.1 million or 28.9% of revenues in Canada, and less than 1.0% of revenues in other international locations. For the year ended December 31, 2013, the Company generated $2,376.2 million or 67.7% of revenues in the United States and Puerto Rico, $1,125.0 million or 32.1% of revenues in Canada, and less than 1.0% of revenues in other international locations.

As of December 31, 2015, the Company had property, plant and equipment, net of depreciation and amortization of $1,532.5 million, and permits and other intangible assets of $506.8 million. Of these totals, $449.3 million or 29.3% of property, plant and equipment and $71.7 million or 14.2% of permits and other intangible assets were in Canada, with the balance being in the United States and Puerto Rico (except for insignificant assets in other foreign countries). As of December 31, 2014, the Company had property, plant and equipment, net of depreciation and amortization of $1,558.8 million, and permits and other intangible assets of $530.1 million. Of these totals, $587.4 million or 37.7% of property, plant and equipment and $94.2 million or 17.8% of permits and other intangible assets were in Canada, with the balance being in the United States and Puerto Rico (except for insignificant assets in other foreign countries).

(17) SEGMENT REPORTING (Continued)

The following table presents assets by reported segment and in the aggregate (in thousands).



	December 31, 2015		December 31, 2014
Property, plant and equipment, net
Technical Services	$	483,425	$	412,323
Industrial and Field Services	237,660		245,115
Kleen Performance Products	193,855		201,451
SK Environmental Services	264,539		240,078
Lodging Services	105,208		141,965
Oil and Gas Field Services	156,286		215,574
Corporate Items	91,494		102,328
Total property, plant and equipment, net	$	1,532,467	$	1,558,834

Goodwill and Permits and other intangibles, net
Technical Services
Goodwill	$	49,267	$	50,092
Permits and other intangibles, net	73,601		74,870
Total Technical Services	122,868		124,962

Industrial and Field Services
Goodwill	105,286		109,214
Permits and other intangibles, net	14,649		17,801
Total Industrial and Field Services	119,935		127,015

Kleen Performance Products
Goodwill	49,755		50,883
Permits and other intangibles, net	140,410		151,041
Total Kleen Performance Products	190,165		201,924

SK Environmental Services
Goodwill	216,589		173,873
Permits and other intangibles, net	256,251		252,897
Total SK Environmental Services	472,840		426,770

Lodging Services
Goodwill	32,208		34,863
Permits and other intangibles, net	7,045		10,744
Total Lodging Services	39,253		45,607

Oil and Gas Field Services
Goodwill	—		33,744
Permits and other intangibles, net	14,862		22,727
Total Oil and Gas Field Services	14,862		56,471
Total	$	959,923	$	982,749

(17) SEGMENT REPORTING (Continued)

The following table presents the total assets by reported segment (in thousands).



	December 31, 2015		December 31, 2014		December 31, 2013
Technical Services	$	800,060	$	756,169	$	699,675
Industrial and Field Services	368,858		392,652		410,233
Kleen Performance Products	492,483		538,921		642,901
SK Environmental Services	805,488		731,072		774,756
Lodging Services	181,357		231,782		239,056
Oil and Gas Field Services	244,210		361,223		381,057
Corporate Items	538,972		677,604		788,752
Total	$	3,431,428	$	3,689,423	$	3,936,430

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



	December 31, 2015		December 31, 2014		December 31, 2013
United States	$	2,575,746	$	2,557,639	$	2,667,438
Canada	851,949		1,128,458		1,266,505
Other foreign	3,733		3,326		2,487
Total	$	3,431,428	$	3,689,423	$	3,936,430