x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE QUARTERLY PERIOD ENDED September 30, 2016 | |
OR | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Massachusetts | 04-2997780 | |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) | |
42 Longwater Drive, Norwell, MA | 02061-9149 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company o | |
(Do not check if a smaller reporting company) |
Common Stock, $.01 par value | 57,392,673 | |
(Class) | (Outstanding as of October 31, 2016) |
Page No. | |
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | (unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 257,857 | $ | 184,708 | |||
Accounts receivable, net of allowances aggregating $28,782 and $31,426, respectively | 512,376 | 496,004 | |||||
Unbilled accounts receivable | 41,542 | 25,940 | |||||
Deferred costs | 19,970 | 18,758 | |||||
Inventories and supplies | 177,288 | 149,521 | |||||
Prepaid expenses and other current assets | 40,898 | 46,265 | |||||
Total current assets | 1,049,931 | 921,196 | |||||
Property, plant and equipment, net | 1,648,571 | 1,532,467 | |||||
Other assets: | |||||||
Deferred financing costs | 1,197 | 1,847 | |||||
Goodwill | 470,633 | 453,105 | |||||
Permits and other intangibles, net | 507,337 | 506,818 | |||||
Other | 34,944 | 15,995 | |||||
Total other assets | 1,014,111 | 977,765 | |||||
Total assets | $ | 3,712,613 | $ | 3,431,428 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 226,776 | $ | 241,183 | |||
Deferred revenue | 66,023 | 61,882 | |||||
Accrued expenses | 226,080 | 193,660 | |||||
Current portion of closure, post-closure and remedial liabilities | 20,217 | 20,395 | |||||
Total current liabilities | 539,096 | 517,120 | |||||
Other liabilities: | |||||||
Closure and post-closure liabilities, less current portion of $6,057 and $7,229, respectively | 56,510 | 49,020 | |||||
Remedial liabilities, less current portion of $14,160 and $13,166, respectively | 114,921 | 118,826 | |||||
Long-term obligations | 1,632,577 | 1,382,543 | |||||
Deferred taxes, unrecognized tax benefits and other long-term liabilities | 268,564 | 267,637 | |||||
Total other liabilities | 2,072,572 | 1,818,026 | |||||
Commitments and contingent liabilities (See Note 15) | |||||||
Stockholders’ equity: | |||||||
Common stock, $.01 par value: | |||||||
Authorized 80,000,000; shares issued and outstanding 57,389,531 and 57,593,201 shares, respectively | 574 | 576 | |||||
Shares held under employee participation plan | (469 | ) | (469 | ) | |||
Additional paid-in capital | 726,878 | 738,401 | |||||
Accumulated other comprehensive loss | (211,544 | ) | (254,892 | ) | |||
Accumulated earnings | 585,506 | 612,666 | |||||
Total stockholders’ equity | 1,100,945 | 1,096,282 | |||||
Total liabilities and stockholders’ equity | $ | 3,712,613 | $ | 3,431,428 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||||
Service revenues | $ | 594,225 | $ | 760,667 | $ | 1,709,018 | $ | 2,158,344 | |||||||
Product revenues | 135,295 | 132,699 | 354,095 | 403,749 | |||||||||||
Total revenues | 729,520 | 893,366 | 2,063,113 | 2,562,093 | |||||||||||
Cost of revenues (exclusive of items shown separately below) | |||||||||||||||
Service revenues | 385,542 | 523,676 | 1,148,212 | 1,484,936 | |||||||||||
Product revenues | 106,373 | 110,970 | 287,984 | 348,905 | |||||||||||
Total cost of revenues | 491,915 | 634,646 | 1,436,196 | 1,833,841 | |||||||||||
Selling, general and administrative expenses | 110,954 | 93,113 | 322,501 | 321,246 | |||||||||||
Accretion of environmental liabilities | 2,476 | 2,577 | 7,529 | 7,795 | |||||||||||
Depreciation and amortization | 73,360 | 69,060 | 215,655 | 205,189 | |||||||||||
Goodwill impairment charge | 34,013 | — | 34,013 | 31,992 | |||||||||||
Income from operations | 16,802 | 93,970 | 47,219 | 162,030 | |||||||||||
Other expense | (198 | ) | (139 | ) | (737 | ) | (390 | ) | |||||||
Gain on sale of business | 16,431 | — | 16,431 | — | |||||||||||
Interest expense, net of interest income of $196, $126, $571 and $465, respectively | (21,565 | ) | (19,017 | ) | (62,192 | ) | (57,704 | ) | |||||||
Income before provision for income taxes | 11,470 | 74,814 | 721 | 103,936 | |||||||||||
Provision for income taxes | 21,725 | 34,586 | 27,881 | 60,402 | |||||||||||
Net (loss) income | $ | (10,255 | ) | $ | 40,228 | $ | (27,160 | ) | $ | 43,534 | |||||
(Loss) earnings per share: | |||||||||||||||
Basic | $ | (0.18 | ) | $ | 0.69 | $ | (0.47 | ) | $ | 0.74 | |||||
Diluted | $ | (0.18 | ) | $ | 0.69 | $ | (0.47 | ) | $ | 0.74 | |||||
Shares used to compute (loss) earnings per share - Basic | 57,487 | 58,161 | 57,575 | 58,799 | |||||||||||
Shares used to compute (loss) earnings per share - Diluted | 57,487 | 58,268 | 57,575 | 58,898 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net (loss) income | $ | (10,255 | ) | $ | 40,228 | $ | (27,160 | ) | $ | 43,534 | |||||
Other comprehensive (loss) income: | |||||||||||||||
Unrealized losses on available-for-sale securities (net of taxes of $238, $0, $238 and $0, respectively) | (164 | ) | — | (358 | ) | — | |||||||||
Foreign currency translation adjustments | (1,147 | ) | (53,541 | ) | 43,706 | (118,713 | ) | ||||||||
Other comprehensive (loss) income | (1,311 | ) | (53,541 | ) | 43,348 | (118,713 | ) | ||||||||
Comprehensive (loss) income | $ | (11,566 | ) | $ | (13,313 | ) | $ | 16,188 | $ | (75,179 | ) |
Nine Months Ended | |||||||
September 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net (loss) income | $ | (27,160 | ) | $ | 43,534 | ||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation and amortization | 215,655 | 205,189 | |||||
Goodwill impairment charge | 34,013 | 31,992 | |||||
Allowance for doubtful accounts | 6,203 | 5,631 | |||||
Amortization of deferred financing costs and debt discount | 2,685 | 2,459 | |||||
Accretion of environmental liabilities | 7,529 | 7,795 | |||||
Changes in environmental liability estimates | (349 | ) | (2,200 | ) | |||
Deferred income taxes | (28,826 | ) | (18,994 | ) | |||
Stock-based compensation | 7,735 | 6,550 | |||||
Excess tax benefit of stock-based compensation | (21 | ) | (102 | ) | |||
Net tax deficiency on stock based awards | (642 | ) | (78 | ) | |||
Other expense | 1,247 | 390 | |||||
Gain on sale of business | (16,431 | ) | — | ||||
Environmental expenditures | (9,374 | ) | (16,773 | ) | |||
Changes in assets and liabilities, net of acquisitions | |||||||
Accounts receivable and unbilled accounts receivable | (32,944 | ) | (63,222 | ) | |||
Inventories and supplies | (13,722 | ) | 14,708 | ||||
Other current assets | 5,619 | 18,706 | |||||
Accounts payable | (11,951 | ) | 47,051 | ||||
Other current and long-term liabilities | 39,561 | 26,957 | |||||
Net cash from operating activities | 178,827 | 309,593 | |||||
Cash flows used in investing activities: | |||||||
Additions to property, plant and equipment | (175,348 | ) | (189,999 | ) | |||
Proceeds from sales of fixed assets | 3,982 | 3,740 | |||||
Acquisitions, net of cash acquired | (207,089 | ) | (79,610 | ) | |||
Proceeds on sale of business, net of cash | 47,134 | — | |||||
Additions to intangible assets, including costs to obtain or renew permits | (1,920 | ) | (4,633 | ) | |||
Purchases of available-for-sale securities | (598 | ) | — | ||||
Net cash used in investing activities | (333,839 | ) | (270,502 | ) | |||
Cash flows from (used in) financing activities: | |||||||
Change in uncashed checks | (7,084 | ) | (21,882 | ) | |||
Proceeds from exercise of stock options | 230 | 397 | |||||
Issuance of restricted shares, net of shares remitted | (2,500 | ) | (2,027 | ) | |||
Repurchases of common stock | (15,869 | ) | (69,155 | ) | |||
Deferred financing costs paid | (2,614 | ) | — | ||||
Payments on capital leases | — | (500 | ) | ||||
Excess tax benefit of stock-based compensation | 21 | 102 | |||||
Issuance of senior secured notes, including premium | 250,625 | — | |||||
Net cash from (used in) financing activities | 222,809 | (93,065 | ) | ||||
Effect of exchange rate change on cash | 5,352 | (13,714 | ) | ||||
Increase (decrease) in cash and cash equivalents | 73,149 | (67,688 | ) | ||||
Cash and cash equivalents, beginning of period | 184,708 | 246,879 | |||||
Cash and cash equivalents, end of period | $ | 257,857 | $ | 179,191 | |||
Supplemental information: | |||||||
Cash payments for interest and income taxes: | |||||||
Interest paid | $ | 66,261 | $ | 58,613 | |||
Income taxes paid | 27,196 | 32,276 | |||||
Non-cash investing and financing activities: | |||||||
Accrual for repurchased shares | 479 | 658 | |||||
Property, plant and equipment accrued | 18,181 | 29,549 | |||||
Receivable for estimated purchase price adjustment | 1,910 | 2,518 |
Common Stock | Shares Held Under Employee Participation Plan | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||
Number of Shares | $ 0.01 Par Value | Additional Paid-in Capital | Accumulated Earnings | Total Stockholders’ Equity | ||||||||||||||||||||||
Balance at January 1, 2016 | 57,593 | $ | 576 | $ | (469 | ) | $ | 738,401 | $ | (254,892 | ) | $ | 612,666 | $ | 1,096,282 | |||||||||||
Net loss | — | — | — | — | — | (27,160 | ) | (27,160 | ) | |||||||||||||||||
Other comprehensive income | — | — | — | — | 43,348 | — | 43,348 | |||||||||||||||||||
Stock-based compensation | — | — | — | 7,735 | — | — | 7,735 | |||||||||||||||||||
Issuance of restricted shares, net of shares remitted | 124 | 1 | — | (2,501 | ) | — | — | (2,500 | ) | |||||||||||||||||
Repurchases of common stock | (337 | ) | (3 | ) | — | (16,345 | ) | — | — | (16,348 | ) | |||||||||||||||
Exercise of stock options | 10 | — | — | 230 | — | — | 230 | |||||||||||||||||||
Net tax deficiency on stock based awards | — | — | — | (642 | ) | — | — | (642 | ) | |||||||||||||||||
Balance at September 30, 2016 | 57,390 | $ | 574 | $ | (469 | ) | $ | 726,878 | $ | (211,544 | ) | $ | 585,506 | $ | 1,100,945 |
At Acquisition Dates | Measurement Period Adjustments | At Acquisition Dates As Reported September 30, 2016 | |||||||||
Accounts receivable | $ | 17,384 | $ | (1,016 | ) | $ | 16,368 | ||||
Inventories and supplies | 13,859 | (1,071 | ) | 12,788 | |||||||
Prepaid expenses and other current assets | 920 | 9 | 929 | ||||||||
Property, plant and equipment | 132,705 | (1,843 | ) | 130,862 | |||||||
Permits and other intangibles | 23,405 | 3,651 | 27,056 | ||||||||
Deferred tax assets | 855 | (2 | ) | 853 | |||||||
Current liabilities | (19,486 | ) | (438 | ) | (19,924 | ) | |||||
Closure and post-closure liabilities | (1,709 | ) | (699 | ) | (2,408 | ) | |||||
Deferred taxes, unrecognized tax benefits and other long-term liabilities | (9,518 | ) | (1,894 | ) | (11,412 | ) | |||||
Total identifiable net assets | 158,415 | (3,303 | ) | 155,112 | |||||||
Goodwill | 48,674 | 1,393 | 50,067 | ||||||||
Total purchase price, net of cash acquired | $ | 207,089 | $ | (1,910 | ) | $ | 205,179 |
Preliminary Allocations | Measurement Period Adjustments | Final Allocations | |||||||||
Accounts receivable | $ | 7,109 | $ | 192 | $ | 7,301 | |||||
Inventories and supplies | 1,791 | — | 1,791 | ||||||||
Prepaid and other current assets | 1,749 | (1,084 | ) | 665 | |||||||
Property, plant and equipment | 30,468 | (2,827 | ) | 27,641 | |||||||
Permits and other intangibles | 20,000 | (1,900 | ) | 18,100 | |||||||
Current liabilities | (5,859 | ) | (25 | ) | (5,884 | ) | |||||
Closure and post-closure liabilities | (1,676 | ) | (657 | ) | (2,333 | ) | |||||
Deferred taxes, unrecognized tax benefits and other long-term liabilities | (13,081 | ) | 3,907 | (9,174 | ) | ||||||
Total identifiable net assets | 40,501 | (2,394 | ) | 38,107 | |||||||
Goodwill | 36,591 | 4,638 | 41,229 | ||||||||
Total purchase price, net of cash acquired | $ | 77,092 | $ | 2,244 | $ | 79,336 |
September 1, 2016 | |||
Total current assets | $ | 19,135 | |
Property, plant and equipment, net | 11,126 | ||
Total other assets | 6,500 | ||
Total assets divested | $ | 36,761 | |
Total current liabilities | 4,040 | ||
Total other liabilities | 566 | ||
Total liabilities divested | $ | 4,606 | |
Net carrying value divested | $ | 32,155 |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
(Loss) income before provision for income taxes | (1,218 | ) | 1,089 | 290 | 2,489 |
September 30, 2016 | December 31, 2015 | ||||||
Oil and oil products | $ | 57,403 | $ | 33,603 | |||
Supplies and drums | 84,133 | 78,132 | |||||
Solvent and solutions | 8,502 | 8,868 | |||||
Modular camp accommodations | 15,492 | 15,126 | |||||
Other | 11,758 | 13,792 | |||||
Total inventories and supplies | $ | 177,288 | $ | 149,521 |
September 30, 2016 | December 31, 2015 | ||||||
Land | $ | 122,337 | $ | 100,582 | |||
Asset retirement costs (non-landfill) | 14,590 | 12,434 | |||||
Landfill assets | 142,587 | 136,624 | |||||
Buildings and improvements | 379,435 | 344,209 | |||||
Camp equipment | 156,838 | 149,361 | |||||
Vehicles | 535,804 | 500,619 | |||||
Equipment | 1,465,378 | 1,328,915 | |||||
Furniture and fixtures | 5,546 | 5,337 | |||||
Construction in progress | 147,569 | 113,657 | |||||
2,970,084 | 2,691,738 | ||||||
Less - accumulated depreciation and amortization | 1,321,513 | 1,159,271 | |||||
Total property, plant and equipment, net | $ | 1,648,571 | $ | 1,532,467 |
Technical Services | Industrial & Field Services | Kleen Performance Products | SK Environmental Services | Lodging Services | Oil and Gas Field Services | Totals | ||||||||||||||||||||||
Balance at January 1, 2016 | $ | 49,267 | $ | 105,286 | $ | 49,755 | $ | 216,589 | $ | 32,208 | $ | — | $ | 453,105 | ||||||||||||||
Acquired from current period acquisitions | 8,989 | 4,925 | 18,629 | 17,524 | — | — | 50,067 | |||||||||||||||||||||
Measurement period adjustment from prior period acquisitions | — | — | — | 2,095 | — | — | 2,095 | |||||||||||||||||||||
Decrease from disposition of business | — | (4,994 | ) | — | (4,994 | ) | ||||||||||||||||||||||
Goodwill impairment charge | (34,013 | ) | (34,013 | ) | ||||||||||||||||||||||||
Foreign currency translation and other | (619 | ) | 1,132 | 98 | 1,957 | 1,805 | — | 4,373 | ||||||||||||||||||||
Balance at September 30, 2016 | $ | 57,637 | $ | 106,349 | $ | 68,482 | $ | 238,165 | $ | — | $ | — | $ | 470,633 |
• | Macroeconomic conditions for service companies operating in western Canada’s oil sands region deteriorated in 2016 primarily due to persistently low oil and gas prices. Persistently low prices have caused Lodging’s primary customers to significantly reduce, defer, or cancel oil and gas projects that are in, or had been planned for, this region during periods of more robust commodity pricing. |
• | Government regulatory delays related to oil and gas pipeline projects have reduced management’s confidence that these projects will move forward in a timely manner or in the form that had been originally contemplated by their planners. These projects represented a significant portion of Lodging’s future growth in terms of the demand for temporary accommodations provided by the Lodging reporting unit. While some of these projects have made recent advancements towards successful government approval, the lack of meaningful progress to date does not provide enough positive evidence that a recovery will be significant enough to improve Lodging’s current forecasted outlook. |
• | There have been consecutive historical quarters where business results were significantly less than internal forecasts, and previous actual results, for the Lodging reporting unit. |
• | During the third quarter ended September 30, 2016, management’s near term outlook was clarified in regards to the business’ projections and the impacts of large scale forest fires which took place in the Fort McMurray area of Alberta, Canada where the Company has significant Lodging operations. |
• | Due to the factors listed above, management significantly lowered its 2016 forecasts and long-range performance relative to the Lodging reporting unit. |
September 30, 2016 | December 31, 2015 | ||||||||||||||||||||||||||
Cost | Accumulated Amortization | Net | Weighted Average Remaining Amortization Period (in years) | Cost | Accumulated Amortization | Net | Weighted Average Remaining Amortization Period (in years) | ||||||||||||||||||||
Permits | $ | 170,194 | $ | 66,510 | $ | 103,684 | 20.3 | $ | 161,396 | $ | 61,142 | $ | 100,254 | 19.0 | |||||||||||||
Customer and supplier relationships | 389,002 | 120,922 | 268,080 | 12.5 | 374,866 | 99,463 | 275,403 | 10.1 | |||||||||||||||||||
Other intangible assets | 40,266 | 27,548 | 12,718 | 7.8 | 31,416 | 22,581 | 8,835 | 1.5 | |||||||||||||||||||
Total amortizable permits and other intangible assets | 599,462 | 214,980 | 384,482 | 14.4 | 567,678 | 183,186 | 384,492 | 10.0 | |||||||||||||||||||
Trademarks and trade names | 122,855 | — | 122,855 | Indefinite | 122,326 | — | 122,326 | Indefinite | |||||||||||||||||||
Total permits and other intangible assets | $ | 722,317 | $ | 214,980 | $ | 507,337 | $ | 690,004 | $ | 183,186 | $ | 506,818 |
Years Ending December 31, | Expected Amortization | ||
2016 (three months) | $ | 9,533 | |
2017 | 35,325 | ||
2018 | 32,345 | ||
2019 | 29,612 | ||
2020 | 27,316 | ||
Thereafter | 250,351 | ||
$ | 384,482 |
September 30, 2016 | December 31, 2015 | ||||||
Insurance | $ | 59,254 | $ | 55,899 | |||
Interest | 21,859 | 20,500 | |||||
Accrued compensation and benefits | 46,921 | 35,646 | |||||
Income, real estate, sales and other taxes | 60,020 | 37,095 | |||||
Other | 38,026 | 44,520 | |||||
$ | 226,080 | $ | 193,660 |
Landfill Retirement Liability | Non-Landfill Retirement Liability | Total | |||||||||
Balance at January 1, 2016 | $ | 32,023 | $ | 24,226 | $ | 56,249 | |||||
Liabilities assumed in acquisitions | — | 2,408 | 2,408 | ||||||||
Adjustments during the measurement period related to 2015 acquisitions | — | 657 | 657 | ||||||||
New asset retirement obligations | 1,650 | — | 1,650 | ||||||||
Accretion | 1,996 | 1,748 | 3,744 | ||||||||
Changes in estimates recorded to statement of operations | (597 | ) | (114 | ) | (711 | ) | |||||
Expenditures | (904 | ) | (709 | ) | (1,613 | ) | |||||
Currency translation and other | 130 | 53 | 183 | ||||||||
Balance at September 30, 2016 | $ | 34,298 | $ | 28,269 | $ | 62,567 |
Remedial Liabilities for Landfill Sites | Remedial Liabilities for Inactive Sites | Remedial Liabilities (Including Superfund) for Non-Landfill Operations | Total | ||||||||||||
Balance at January 1, 2016 | $ | 2,327 | $ | 63,613 | $ | 66,052 | $ | 131,992 | |||||||
Liabilities assumed in acquisition | — | — | 4 | 4 | |||||||||||
Accretion | 82 | 2,049 | 1,654 | 3,785 | |||||||||||
Changes in estimates recorded to statement of operations | 71 | (448 | ) | 739 | 362 | ||||||||||
Expenditures | (88 | ) | (2,957 | ) | (4,716 | ) | (7,761 | ) | |||||||
Currency translation and other | — | 45 | 654 | 699 | |||||||||||
Balance at September 30, 2016 | $ | 2,392 | $ | 62,302 | $ | 64,387 | $ | 129,081 |
September 30, 2016 | December 31, 2015 | ||||||
Senior unsecured notes, at 5.25%, due August 1, 2020 ("2020 Notes") | $ | 800,000 | $ | 800,000 | |||
Senior unsecured notes, at 5.125%, due June 1, 2021 ("2021 Notes") | 845,000 | 595,000 | |||||
Long-term obligations, at par | $ | 1,645,000 | $ | 1,395,000 | |||
Unamortized debt issuance costs and premium, net | (12,423 | ) | (12,457 | ) | |||
Long-term obligations, at carrying value | $ | 1,632,577 | $ | 1,382,543 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Numerator for basic and diluted (loss) earnings per share: | |||||||||||||||
Net (loss) income | $ | (10,255 | ) | $ | 40,228 | $ | (27,160 | ) | $ | 43,534 | |||||
Denominator: | |||||||||||||||
Basic shares outstanding | 57,487 | 58,161 | 57,575 | 58,799 | |||||||||||
Dilutive effect of equity-based compensation awards | — | 107 | — | 99 | |||||||||||
Dilutive shares outstanding | 57,487 | 58,268 | 57,575 | 58,898 | |||||||||||
Basic (loss) earnings per share: | $ | (0.18 | ) | $ | 0.69 | $ | (0.47 | ) | $ | 0.74 | |||||
Diluted (loss) earnings per share: | $ | (0.18 | ) | $ | 0.69 | $ | (0.47 | ) | $ | 0.74 |
Foreign Currency Translation | Unrealized Gains on Available-For-Sale Securities | Unfunded Pension Liability | Total | ||||||||||||
Balance at January 1, 2016 | $ | (252,939 | ) | $ | — | $ | (1,953 | ) | $ | (254,892 | ) | ||||
Other comprehensive income (loss) before reclassifications | 43,706 | (596 | ) | — | 43,110 | ||||||||||
Tax effects | — | 238 | — | 238 | |||||||||||
Other comprehensive income (loss) | $ | 43,706 | $ | (358 | ) | $ | — | $ | 43,348 | ||||||
Balance at September 30, 2016 | $ | (209,233 | ) | $ | (358 | ) | $ | (1,953 | ) | $ | (211,544 | ) |
Restricted Stock | Number of Shares | Weighted Average Grant-Date Fair Value | ||||
Balance at January 1, 2016 | 362,618 | $ | 55.79 | |||
Granted | 335,992 | $ | 50.87 | |||
Vested | (168,565 | ) | $ | 54.06 | ||
Forfeited | (46,298 | ) | $ | 53.04 | ||
Balance at September 30, 2016 | 483,747 | $ | 53.23 |
Performance Stock | Number of Shares | Weighted Average Grant-Date Fair Value | ||||
Balance at January 1, 2016 | 187,274 | $ | 57.13 | |||
Granted | 207,624 | $ | 54.21 | |||
Vested | (8,420 | ) | $ | 61.90 | ||
Forfeited | (33,469 | ) | $ | 55.96 | ||
Balance at September 30, 2016 | 353,009 | $ | 55.39 |
For the Three Months Ended September 30, 2016 | For the Three Months Ended September 30, 2015 | ||||||||||||||||||||||||||||||
Third party revenues | Intersegment revenues, net | Corporate Items, net | Direct revenues | Third party revenues | Intersegment revenues, net | Corporate Items, net | Direct revenues | ||||||||||||||||||||||||
Technical Services | $ | 232,482 | $ | 38,795 | $ | 492 | $ | 271,769 | $ | 253,069 | $ | 34,819 | $ | 506 | $ | 288,394 | |||||||||||||||
Industrial and Field Services | 162,118 | (12,734 | ) | (32 | ) | 149,352 | 307,226 | (6,973 | ) | (313 | ) | 299,940 | |||||||||||||||||||
Kleen Performance Products | 102,318 | (9,761 | ) | — | 92,557 | 100,827 | (23,744 | ) | (6 | ) | 77,077 | ||||||||||||||||||||
SK Environmental Services | 194,764 | (18,955 | ) | 1 | 175,810 | 171,832 | (5,947 | ) | 2 | 165,887 | |||||||||||||||||||||
Lodging Services | 15,520 | 233 | 19 | 15,772 | 13,507 | 743 | 30 | 14,280 | |||||||||||||||||||||||
Oil and Gas Field Services | 22,197 | 2,422 | 86 | 24,705 | 46,788 | 1,102 | 92 | 47,982 | |||||||||||||||||||||||
Corporate Items | 121 | — | (566 | ) | (445 | ) | 117 | — | (311 | ) | (194 | ) | |||||||||||||||||||
Total | $ | 729,520 | $ | — | $ | — | $ | 729,520 | $ | 893,366 | $ | — | $ | — | $ | 893,366 |
For the Nine Months Ended September 30, 2016 | For the Nine Months Ended September 30, 2015 | ||||||||||||||||||||||||||||||
Third party revenues | Intersegment revenues, net | Corporate Items, net | Direct revenues | Third party revenues | Intersegment revenues, net | Corporate Items, net | Direct revenues | ||||||||||||||||||||||||
Technical Services | $ | 680,717 | $ | 109,217 | $ | 1,547 | $ | 791,481 | $ | 741,419 | $ | 108,037 | $ | 2,886 | $ | 852,342 | |||||||||||||||
Industrial and Field Services | 437,546 | (29,255 | ) | (335 | ) | 407,956 | 807,423 | (24,764 | ) | (636 | ) | 782,023 | |||||||||||||||||||
Kleen Performance Products | 256,572 | (26,768 | ) | (1 | ) | 229,803 | 296,738 | (63,429 | ) | (8 | ) | 233,301 | |||||||||||||||||||
SK Environmental Services | 565,186 | (59,561 | ) | 369 | 505,994 | 508,392 | (26,331 | ) | 5 | 482,066 | |||||||||||||||||||||
Lodging Services | 47,583 | 634 | 54 | 48,271 | 68,782 | 1,899 | 127 | 70,808 | |||||||||||||||||||||||
Oil and Gas Field Services | 73,445 | 5,733 | 221 | 79,399 | 138,992 | 4,588 | 141 | 143,721 | |||||||||||||||||||||||
Corporate Items | 2,064 | — | (1,855 | ) | 209 | 347 | — | (2,515 | ) | (2,168 | ) | ||||||||||||||||||||
Total | $ | 2,063,113 | $ | — | $ | — | $ | 2,063,113 | $ | 2,562,093 | $ | — | $ | — | $ | 2,562,093 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Adjusted EBITDA: | |||||||||||||||
Technical Services | $ | 72,333 | $ | 79,048 | $ | 201,622 | $ | 219,257 | |||||||
Industrial and Field Services | 18,579 | 62,460 | 40,643 | 145,850 | |||||||||||
Kleen Performance Products | 22,803 | 12,123 | 37,358 | 23,471 | |||||||||||
SK Environmental Services | 47,250 | 40,096 | 127,984 | 108,540 | |||||||||||
Lodging Services | 4,104 | 1,827 | 8,145 | 12,589 | |||||||||||
Oil and Gas Field Services | (4,425 | ) | 1,579 | (10,026 | ) | 800 | |||||||||
Corporate Items | (33,993 | ) | (31,526 | ) | (101,310 | ) | (103,501 | ) | |||||||
Total | $ | 126,651 | $ | 165,607 | $ | 304,416 | $ | 407,006 | |||||||
Reconciliation to Consolidated Statements of Operations: | |||||||||||||||
Accretion of environmental liabilities | 2,476 | 2,577 | 7,529 | 7,795 | |||||||||||
Depreciation and amortization | 73,360 | 69,060 | 215,655 | 205,189 | |||||||||||
Goodwill impairment charge | 34,013 | — | 34,013 | 31,992 | |||||||||||
Income from operations | 16,802 | 93,970 | 47,219 | 162,030 | |||||||||||
Other expense | 198 | 139 | 737 | 390 | |||||||||||
Gain on sale of business | (16,431 | ) | — | (16,431 | ) | — | |||||||||
Interest expense, net of interest income | 21,565 | 19,017 | 62,192 | 57,704 | |||||||||||
Income before provision for income taxes | $ | 11,470 | $ | 74,814 | $ | 721 | $ | 103,936 |
September 30, 2016 | |||||||||||||||||||||||||||||||
Technical Services | Industrial and Field Services | Kleen Performance Products | SK Environmental Services | Lodging Services | Oil and Gas Field Services | Corporate Items | Totals | ||||||||||||||||||||||||
Property, plant and equipment, net | $ | 521,040 | $ | 211,712 | $ | 260,608 | $ | 328,655 | $ | 99,764 | $ | 139,137 | $ | 87,655 | $ | 1,648,571 | |||||||||||||||
Goodwill | 57,637 | 106,349 | 68,482 | 238,165 | — | — | — | 470,633 | |||||||||||||||||||||||
Permits and other intangibles, net | 74,646 | 11,490 | 141,039 | 264,864 | 5,951 | 9,347 | — | 507,337 | |||||||||||||||||||||||
Total assets | $ | 859,794 | $ | 366,929 | $ | 605,160 | $ | 920,333 | $ | 142,948 | $ | 229,480 | $ | 587,969 | $ | 3,712,613 |
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 | ||||||||||||||||||||||||
Property, plant and equipment, net | $ | 483,425 | $ | 237,660 | $ | 193,855 | $ | 264,539 | $ | 105,208 | $ | 156,286 | $ | 91,494 | $ | 1,532,467 | |||||||||||||||
Goodwill | 49,267 | 105,286 | 49,755 | 216,589 | 32,208 | — | — | 453,105 | |||||||||||||||||||||||
Permits and other intangibles, net | 73,601 | 14,649 | 140,410 | 256,251 | 7,045 | 14,862 | — | 506,818 | |||||||||||||||||||||||
Total assets | $ | 800,060 | $ | 368,858 | $ | 492,483 | $ | 805,488 | $ | 181,357 | $ | 244,210 | $ | 538,972 | $ | 3,431,428 |
September 30, 2016 | December 31, 2015 | ||||||
United States | $ | 2,944,936 | $ | 2,575,746 | |||
Canada | 767,677 | 851,949 | |||||
Other foreign | — | 3,733 | |||||
Total | $ | 3,712,613 | $ | 3,431,428 |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 51,334 | $ | 170,183 | $ | 36,340 | $ | — | $ | 257,857 | |||||||||
Intercompany receivables | 190,728 | 300,656 | 34,665 | (526,049 | ) | — | |||||||||||||
Accounts receivable, net | — | 418,170 | 94,206 | — | 512,376 | ||||||||||||||
Other current assets | 2,537 | 207,488 | 69,673 | — | 279,698 | ||||||||||||||
Property, plant and equipment, net | — | 1,217,704 | 430,867 | — | 1,648,571 | ||||||||||||||
Investments in subsidiaries | 2,813,894 | 488,437 | — | (3,302,331 | ) | — | |||||||||||||
Intercompany debt receivable | — | 212,171 | 3,701 | (215,872 | ) | — | |||||||||||||
Goodwill | — | 417,992 | 52,641 | — | 470,633 | ||||||||||||||
Permits and other intangibles, net | — | 439,543 | 67,794 | — | 507,337 | ||||||||||||||
Other long-term assets | 1,197 | 9,552 | 25,392 | — | 36,141 | ||||||||||||||
Total assets | $ | 3,059,690 | $ | 3,881,896 | $ | 815,279 | $ | (4,044,252 | ) | $ | 3,712,613 | ||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||
Current liabilities | $ | 22,619 | $ | 438,298 | $ | 78,179 | $ | — | $ | 539,096 | |||||||||
Intercompany payables | 299,848 | 224,593 | 1,608 | (526,049 | ) | — | |||||||||||||
Closure, post-closure and remedial liabilities, net | — | 155,710 | 15,721 | — | 171,431 | ||||||||||||||
Long-term obligations | 1,632,577 | — | — | — | 1,632,577 | ||||||||||||||
Intercompany debt payable | 3,701 | — | 212,171 | (215,872 | ) | — | |||||||||||||
Other long-term liabilities | — | 249,401 | 19,163 | — | 268,564 | ||||||||||||||
Total liabilities | 1,958,745 | 1,068,002 | 326,842 | (741,921 | ) | 2,611,668 | |||||||||||||
Stockholders’ equity | 1,100,945 | 2,813,894 | 488,437 | (3,302,331 | ) | 1,100,945 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 3,059,690 | $ | 3,881,896 | $ | 815,279 | $ | (4,044,252 | ) | $ | 3,712,613 |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 11,017 | $ | 83,479 | $ | 90,212 | $ | — | $ | 184,708 | |||||||||
Intercompany receivables | 164,709 | 213,243 | 39,804 | (417,756 | ) | — | |||||||||||||
Accounts receivables, net | — | 404,580 | 91,424 | — | 496,004 | ||||||||||||||
Other current assets | — | 179,969 | 60,515 | — | 240,484 | ||||||||||||||
Property, plant and equipment, net | — | 1,082,466 | 450,001 | — | 1,532,467 | ||||||||||||||
Investments in subsidiaries | 2,547,307 | 522,067 | — | (3,069,374 | ) | — | |||||||||||||
Intercompany debt receivable | — | 260,957 | 3,701 | (264,658 | ) | — | |||||||||||||
Goodwill | — | 367,306 | 85,799 | — | 453,105 | ||||||||||||||
Permits and other intangibles, net | — | 435,080 | 71,738 | — | 506,818 | ||||||||||||||
Other long-term assets | 1,068 | 10,274 | 6,500 | — | 17,842 | ||||||||||||||
Total assets | $ | 2,724,101 | $ | 3,559,421 | $ | 899,694 | $ | (3,751,788 | ) | $ | 3,431,428 | ||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||||||||
Current liabilities | $ | 20,813 | $ | 424,588 | $ | 71,719 | $ | — | $ | 517,120 | |||||||||
Intercompany payables | 220,762 | 195,287 | 1,707 | (417,756 | ) | — | |||||||||||||
Closure, post-closure and remedial liabilities, net | — | 153,190 | 14,656 | — | 167,846 | ||||||||||||||
Long-term obligations | 1,382,543 | — | — | — | 1,382,543 | ||||||||||||||
Intercompany debt payable | 3,701 | — | 260,957 | (264,658 | ) | — | |||||||||||||
Other long-term liabilities | — | 239,049 | 28,588 | — | 267,637 | ||||||||||||||
Total liabilities | 1,627,819 | 1,012,114 | 377,627 | (682,414 | ) | 2,335,146 | |||||||||||||
Stockholders’ equity | 1,096,282 | 2,547,307 | 522,067 | (3,069,374 | ) | 1,096,282 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 2,724,101 | $ | 3,559,421 | $ | 899,694 | $ | (3,751,788 | ) | $ | 3,431,428 |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Revenues | |||||||||||||||||||
Service revenues | $ | — | $ | 461,139 | $ | 145,780 | $ | (12,694 | ) | $ | 594,225 | ||||||||
Product revenues | — | 118,106 | 20,072 | (2,883 | ) | 135,295 | |||||||||||||
Total revenues | — | 579,245 | 165,852 | (15,577 | ) | 729,520 | |||||||||||||
Cost of revenues (exclusive of items shown separately below) | |||||||||||||||||||
Service cost of revenues | (598 | ) | 288,764 | 110,070 | (12,694 | ) | 385,542 | ||||||||||||
Product cost of revenues | — | 94,050 | 15,206 | (2,883 | ) | 106,373 | |||||||||||||
Total cost of revenues | (598 | ) | 382,814 | 125,276 | (15,577 | ) | 491,915 | ||||||||||||
Selling, general and administrative expenses | 23 | 88,652 | 22,279 | — | 110,954 | ||||||||||||||
Accretion of environmental liabilities | — | 2,243 | 233 | — | 2,476 | ||||||||||||||
Depreciation and amortization | — | 51,957 | 21,403 | — | 73,360 | ||||||||||||||
Goodwill impairment charge | — | — | 34,013 | — | 34,013 | ||||||||||||||
Income (loss) from operations | 575 | 53,579 | (37,352 | ) | — | 16,802 | |||||||||||||
Other expense | — | (188 | ) | (10 | ) | — | (198 | ) | |||||||||||
Gain on sale of business | — | 1,288 | 15,143 | — | 16,431 | ||||||||||||||
Interest (expense) income | (23,042 | ) | 1,456 | 21 | — | (21,565 | ) | ||||||||||||
Equity in earnings of subsidiaries, net of taxes | 3,225 | (22,341 | ) | — | 19,116 | — | |||||||||||||
Intercompany interest income (expense) | — | 5,235 | (5,235 | ) | — | — | |||||||||||||
(Loss) income before (benefit) provision for income taxes | (19,242 | ) | 39,029 | (27,433 | ) | 19,116 | 11,470 | ||||||||||||
(Benefit) provision for income taxes | (8,987 | ) | 35,803 | (5,091 | ) | — | 21,725 | ||||||||||||
Net (loss) income | (10,255 | ) | 3,226 | (22,342 | ) | 19,116 | (10,255 | ) | |||||||||||
Other comprehensive loss | (1,311 | ) | (1,311 | ) | (3,927 | ) | 5,238 | (1,311 | ) | ||||||||||
Comprehensive (loss) income | $ | (11,566 | ) | $ | 1,915 | $ | (26,269 | ) | $ | 24,354 | $ | (11,566 | ) |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Revenues | |||||||||||||||||||
Service revenues | $ | — | $ | 612,814 | $ | 162,680 | $ | (14,827 | ) | $ | 760,667 | ||||||||
Product revenues | — | 117,653 | 17,591 | (2,545 | ) | 132,699 | |||||||||||||
Total revenues | — | 730,467 | 180,271 | (17,372 | ) | 893,366 | |||||||||||||
Cost of revenues (exclusive of items shown separately below) | |||||||||||||||||||
Service cost of revenues | — | 413,878 | 124,625 | (14,827 | ) | 523,676 | |||||||||||||
Product cost of revenues | — | 101,778 | 11,737 | (2,545 | ) | 110,970 | |||||||||||||
Total cost of revenues | — | 515,656 | 136,362 | (17,372 | ) | 634,646 | |||||||||||||
Selling, general and administrative expenses | 25 | 72,811 | 20,277 | — | 93,113 | ||||||||||||||
Accretion of environmental liabilities | — | 2,277 | 300 | — | 2,577 | ||||||||||||||
Depreciation and amortization | — | 46,951 | 22,109 | — | 69,060 | ||||||||||||||
(Loss) income from operations | (25 | ) | 92,772 | 1,223 | — | 93,970 | |||||||||||||
Other income (expense) | — | 204 | (343 | ) | — | (139 | ) | ||||||||||||
Interest (expense) income | (19,671 | ) | 613 | 41 | — | (19,017 | ) | ||||||||||||
Equity in earnings of subsidiaries, net of taxes | 52,046 | (2,341 | ) | — | (49,705 | ) | — | ||||||||||||
Intercompany interest income (expense) | — | 5,666 | (5,666 | ) | — | — | |||||||||||||
Income (loss) before (benefit) provision for income taxes | 32,350 | 96,914 | (4,745 | ) | (49,705 | ) | 74,814 | ||||||||||||
(Benefit) provision for income taxes | (7,878 | ) | 44,868 | (2,404 | ) | — | 34,586 | ||||||||||||
Net income (loss) | 40,228 | 52,046 | (2,341 | ) | (49,705 | ) | 40,228 | ||||||||||||
Other comprehensive loss | (53,541 | ) | (53,541 | ) | (34,150 | ) | 87,691 | (53,541 | ) | ||||||||||
Comprehensive loss | $ | (13,313 | ) | $ | (1,495 | ) | $ | (36,491 | ) | $ | 37,986 | $ | (13,313 | ) |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Revenues | |||||||||||||||||||
Service revenues | $ | — | $ | 1,345,629 | $ | 399,216 | $ | (35,827 | ) | $ | 1,709,018 | ||||||||
Product revenues | — | 303,342 | 58,176 | (7,423 | ) | 354,095 | |||||||||||||
Total revenues | — | 1,648,971 | 457,392 | (43,250 | ) | 2,063,113 | |||||||||||||
Cost of revenues (exclusive of items shown separately below) | |||||||||||||||||||
Service cost of revenues | (1,185 | ) | 864,071 | 321,153 | (35,827 | ) | 1,148,212 | ||||||||||||
Product cost of revenues | — | 252,512 | 42,895 | (7,423 | ) | 287,984 | |||||||||||||
Total cost of revenues | (1,185 | ) | 1,116,583 | 364,048 | (43,250 | ) | 1,436,196 | ||||||||||||
Selling, general and administrative expenses | 84 | 253,189 | 69,228 | — | 322,501 | ||||||||||||||
Accretion of environmental liabilities | — | 6,846 | 683 | — | 7,529 | ||||||||||||||
Depreciation and amortization | — | 151,348 | 64,307 | — | 215,655 | ||||||||||||||
Goodwill impairment charge | — | — | 34,013 | — | 34,013 | ||||||||||||||
Income (loss) from operations | 1,101 | 121,005 | (74,887 | ) | — | 47,219 | |||||||||||||
Other income (expense) | — | 124 | (861 | ) | — | (737 | ) | ||||||||||||
Gain on sale of business | — | 1,288 | 15,143 | — | 16,431 | ||||||||||||||
Interest (expense) income | (66,147 | ) | 3,851 | 104 | — | (62,192 | ) | ||||||||||||
Equity in earnings of subsidiaries, net of taxes | 11,867 | (58,031 | ) | — | 46,164 | — | |||||||||||||
Intercompany interest income (expense) | — | 15,891 | (15,891 | ) | — | — | |||||||||||||
(Loss) income before (benefit) provision for income taxes | (53,179 | ) | 84,128 | (76,392 | ) | 46,164 | 721 | ||||||||||||
(Benefit) provision for income taxes | (26,019 | ) | 72,260 | (18,360 | ) | — | 27,881 | ||||||||||||
Net (loss) income | (27,160 | ) | 11,868 | (58,032 | ) | 46,164 | (27,160 | ) | |||||||||||
Other comprehensive gain | 43,348 | 43,348 | 24,403 | (67,751 | ) | 43,348 | |||||||||||||
Comprehensive gain (loss) | $ | 16,188 | $ | 55,216 | $ | (33,629 | ) | $ | (21,587 | ) | $ | 16,188 |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Revenues | |||||||||||||||||||
Service revenues | $ | — | $ | 1,659,739 | $ | 546,790 | $ | (48,185 | ) | $ | 2,158,344 | ||||||||
Product revenues | — | 349,524 | 63,239 | (9,014 | ) | 403,749 | |||||||||||||
Total revenues | — | 2,009,263 | 610,029 | (57,199 | ) | 2,562,093 | |||||||||||||
Cost of revenues (exclusive of items shown separately below) | |||||||||||||||||||
Service cost of revenues | — | 1,106,591 | 426,530 | (48,185 | ) | 1,484,936 | |||||||||||||
Product cost of revenues | — | 315,322 | 42,597 | (9,014 | ) | 348,905 | |||||||||||||
Total cost of revenues | — | 1,421,913 | 469,127 | (57,199 | ) | 1,833,841 | |||||||||||||
Selling, general and administrative expenses | 75 | 247,472 | 73,699 | — | 321,246 | ||||||||||||||
Accretion of environmental liabilities | — | 6,870 | 925 | — | 7,795 | ||||||||||||||
Depreciation and amortization | — | 137,354 | 67,835 | — | 205,189 | ||||||||||||||
Goodwill impairment charge | — | 4,164 | 27,828 | — | 31,992 | ||||||||||||||
(Loss) income from operations | (75 | ) | 191,490 | (29,385 | ) | — | 162,030 | ||||||||||||
Other income (expense) | — | 483 | (873 | ) | — | (390 | ) | ||||||||||||
Interest (expense) income | (58,962 | ) | 1,115 | 143 | — | (57,704 | ) | ||||||||||||
Equity in earnings of subsidiaries, net of taxes | 78,956 | (38,920 | ) | — | (40,036 | ) | — | ||||||||||||
Intercompany interest income (expense) | — | 17,679 | (17,679 | ) | — | — | |||||||||||||
Income (loss) before (benefit) provision for income taxes | 19,919 | 171,847 | (47,794 | ) | (40,036 | ) | 103,936 | ||||||||||||
(Benefit) provision for income taxes | (23,615 | ) | 92,891 | (8,874 | ) | — | 60,402 | ||||||||||||
Net income (loss) | 43,534 | 78,956 | (38,920 | ) | (40,036 | ) | 43,534 | ||||||||||||
Other comprehensive loss | (118,713 | ) | (118,713 | ) | (76,752 | ) | 195,465 | (118,713 | ) | ||||||||||
Comprehensive loss | $ | (75,179 | ) | $ | (39,757 | ) | $ | (115,672 | ) | $ | 155,429 | $ | (75,179 | ) |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Net cash from (used in) operating activities | $ | 43,033 | $ | 128,182 | $ | 7,612 | $ | — | $ | 178,827 | |||||||||
Cash flows used in investing activities: | |||||||||||||||||||
Additions to property, plant and equipment | — | (152,836 | ) | (22,512 | ) | — | (175,348 | ) | |||||||||||
Proceeds from sales of fixed assets | — | 950 | 3,032 | — | 3,982 | ||||||||||||||
Acquisitions, net of cash acquired | — | (197,089 | ) | (10,000 | ) | — | (207,089 | ) | |||||||||||
Proceeds on sale of business | — | 18,885 | 28,249 | — | 47,134 | ||||||||||||||
Costs to obtain or renew permits | — | (949 | ) | (971 | ) | — | (1,920 | ) | |||||||||||
Purchase of available-for-sale securities | (102 | ) | — | (496 | ) | — | (598 | ) | |||||||||||
Investment in subsidiaries | (250,625 | ) | — | — | 250,625 | — | |||||||||||||
Intercompany | — | (18,118 | ) | — | 18,118 | — | |||||||||||||
Net cash used in investing activities | (250,727 | ) | (349,157 | ) | (2,698 | ) | 268,743 | (333,839 | ) | ||||||||||
Cash flows from (used in) financing activities: | |||||||||||||||||||
Change in uncashed checks | — | (6,064 | ) | (1,020 | ) | — | (7,084 | ) | |||||||||||
Exercise of stock options | 230 | — | — | — | 230 | ||||||||||||||
Issuance of restricted shares, net of shares remitted | (2,500 | ) | — | — | — | (2,500 | ) | ||||||||||||
Repurchases of common stock | (15,869 | ) | — | — | — | (15,869 | ) | ||||||||||||
Excess tax benefit of stock-based compensation | 21 | — | — | — | 21 | ||||||||||||||
Deferred financing costs paid | (2,614 | ) | — | — | — | (2,614 | ) | ||||||||||||
Issuance of senior secured notes, including premium | 250,625 | 250,625 | — | (250,625 | ) | 250,625 | |||||||||||||
Intercompany | 18,118 | — | — | (18,118 | ) | — | |||||||||||||
Intercompany debt | — | 63,118 | (63,118 | ) | — | — | |||||||||||||
Net cash from (used in) financing activities | 248,011 | 307,679 | (64,138 | ) | (268,743 | ) | 222,809 | ||||||||||||
Effect of exchange rate change on cash | — | — | 5,352 | — | 5,352 | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 40,317 | 86,704 | (53,872 | ) | — | 73,149 | |||||||||||||
Cash and cash equivalents, beginning of period | 11,017 | 83,479 | 90,212 | — | 184,708 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 51,334 | $ | 170,183 | $ | 36,340 | $ | — | $ | 257,857 |
Clean Harbors, Inc. | U.S. Guarantor Subsidiaries | Foreign Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||
Net cash from operating activities | $ | 9,503 | $ | 240,713 | $ | 59,377 | $ | — | $ | 309,593 | |||||||||
Cash flows used in investing activities: | |||||||||||||||||||
Additions to property, plant and equipment | — | (162,329 | ) | (27,670 | ) | — | (189,999 | ) | |||||||||||
Proceeds from sale of fixed assets | — | 1,177 | 2,563 | — | 3,740 | ||||||||||||||
Acquisitions, net of cash acquired | — | (79,610 | ) | — | — | (79,610 | ) | ||||||||||||
Costs to obtain or renew permits | — | (4 | ) | (4,629 | ) | — | (4,633 | ) | |||||||||||
Intercompany | — | (71,182 | ) | — | 71,182 | — | |||||||||||||
Net cash used in investing activities | — | (311,948 | ) | (29,736 | ) | 71,182 | (270,502 | ) | |||||||||||
Cash flows used in financing activities: | |||||||||||||||||||
Change in uncashed checks | — | (16,635 | ) | (5,247 | ) | — | (21,882 | ) | |||||||||||
Proceeds from exercise of stock options | 397 | — | — | — | 397 | ||||||||||||||
Issuance of restricted shares, net of shares remitted | (2,027 | ) | — | — | — | (2,027 | ) | ||||||||||||
Repurchases of common stock | (69,155 | ) | — | — | — | (69,155 | ) | ||||||||||||
Excess tax benefit of stock-based compensation | 102 | — | — | — | 102 | ||||||||||||||
Payments of capital leases | — | (203 | ) | (297 | ) | — | (500 | ) | |||||||||||
Intercompany | 71,182 | — | — | (71,182 | ) | — | |||||||||||||
Net cash from (used in) financing activities | 499 | (16,838 | ) | (5,544 | ) | (71,182 | ) | (93,065 | ) | ||||||||||
Effect of exchange rate change on cash | — | — | (13,714 | ) | — | (13,714 | ) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 10,002 | (88,073 | ) | 10,383 | — | (67,688 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 1,006 | 154,147 | 91,726 | — | 246,879 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 11,008 | $ | 66,074 | $ | 102,109 | $ | — | $ | 179,191 |
• | Technical Services - Technical Services segment results are predicated upon the demand by our customers for waste services directly attributable to waste volumes generated by them and the existence of project work contracted by the Technical Services segment and/or other segments of Clean Harbors whereby waste handling and/or disposal is required. In managing the business and evaluating performance, management tracks the volumes of waste handled and disposed of through our owned incinerators and landfills as well as the utilization of such incinerators. Levels of activity and ultimate performance associated with this segment can be impacted by inherent seasonality in the business and weather conditions, market conditions and overall levels of industrial activity, efficiency of our operations, competition and market pricing of our services and the management of our related operating costs. |
• | Industrial and Field Services - Industrial and Field Services segment results are impacted by the demand for planned and unplanned industrial related cleaning and maintenance services at customer sites and the requirement for environmental cleanup services on a scheduled or emergency basis, including response to national events such as major oil spills, natural disasters or other events where immediate and specialized services are pertinent. Management considers the number of plant sites where services are contracted and expected site turnaround schedules to be indicators of the businesses’ performance along with the existence of local or national events. |
• | Kleen Performance Products - Kleen Performance Products results are significantly impacted by the overall market pricing and product mix associated with base and blended oil products and, more specifically, the market prices of Group II base oils, which historically have seen correlation with overall crude oil prices which have experienced significant decline since 2014. Costs incurred in connection with the collection of used oils, which are raw materials associated with the segment’s products, can also be volatile as was the case for much of fiscal year 2015 when such costs were disconnected from market pricing of the based and blended oil products sold by the segment. Given the impact of lower base and blended oil pricing, we are now charging stop fees related to our used oil collection services which have allowed us to more effectively manage the profit spreads inherent in the business. The implementation of our direct sales program resulting in the sale of our renewable oil products directly to our end customers will also impact future operating results. |
• | SK Environmental Services - SK Environmental Services segment results are significantly impacted by the number of parts washers serviced by the business and the ability to attract small quantity waste producers as customers and integrate them into the Clean Harbors waste network. Performance is also predicated upon the segment management’s ability to manage related costs associated with transportation and the servicing of customers and successfully managing costs associated with the collection of used oils which are then transferred to the Kleen Performance Products segment. The implementation of our direct sales program resulting in the sale of our renewable oil products directly to our end customers will also impact future operating results. |
• | Lodging Services - Lodging Services segment results are dependent upon levels of construction and maintenance activity associated with the oil and related industries in the Oil Sands and other regions of Western Canada in which our camps and lodges operate, as well as demand for our modular unit production. Levels of overall activity in these regions drive the demand and related pricing for lodging and camp accommodations and related services. To mitigate the decrease in demand experienced in this business, we have targeted more non-traditional markets such as schools, hospitals, and other municipal structures to offer our modular unit accommodations and related services. Given that segment's operations are located entirely in Canada, the impact of foreign currency translations which result from changes in the exchange rates between the U.S. and Canadian dollar also significantly impacts the segment's results |
• | Oil and Gas Field Services - Oil and Gas Field Services segment results are significantly impacted by overall levels of oil and gas related exploration, drilling activity and production in North America. The levels of such exploration, drilling activity and production are largely dependent upon the number of oil rigs in operation, as well as global and North American oil prices on which such activity levels are strongly predicated. Crude oil prices have significantly declined since a high of $106.57 in 2013 to a low of $30.32 in 2016. This oil price volatility and future price uncertainty has resulted in lower activity levels which have negatively impacted the business’ results. The majority of the segment's operations are in Canada, and therefore the impact of US to Canadian dollar foreign currency translation also significantly impacted the segment’s results. |
Summary of Operations (in thousands) | |||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
September 30, 2016 | September 30, 2015 | $ Change | % Change | September 30, 2016 | September 30, 2015 | $ Change | % Change | ||||||||||||||||||||
Third Party Revenues(1): | |||||||||||||||||||||||||||
Technical Services | $ | 232,482 | $ | 253,069 | $ | (20,587 | ) | (8.1)% | $ | 680,717 | $ | 741,419 | $ | (60,702 | ) | (8.2)% | |||||||||||
Industrial and Field Services | 162,118 | 307,226 | (145,108 | ) | (47.2) | 437,546 | 807,423 | (369,877 | ) | (45.8) | |||||||||||||||||
Kleen Performance Products | 102,318 | 100,827 | 1,491 | 1.5 | 256,572 | 296,738 | (40,166 | ) | (13.5) | ||||||||||||||||||
SK Environmental Services | 194,764 | 171,832 | 22,932 | 13.3 | 565,186 | 508,392 | 56,794 | 11.2 | |||||||||||||||||||
Lodging Services | 15,520 | 13,507 | 2,013 | 14.9 | 47,583 | 68,782 | (21,199 | ) | (30.8) | ||||||||||||||||||
Oil and Gas Field Services | 22,197 | 46,788 | (24,591 | ) | (52.6) | 73,445 | 138,992 | (65,547 | ) | (47.2) | |||||||||||||||||
Corporate Items | 121 | 117 | 4 | 3.4 | 2,064 | 347 | 1,717 | 494.8 | |||||||||||||||||||
Total | $ | 729,520 | $ | 893,366 | $ | (163,846 | ) | (18.3)% | $ | 2,063,113 | $ | 2,562,093 | $ | (498,980 | ) | (19.5)% | |||||||||||
Direct Revenues(1): | |||||||||||||||||||||||||||
Technical Services | $ | 271,769 | $ | 288,394 | $ | (16,625 | ) | (5.8)% | $ | 791,481 | $ | 852,342 | $ | (60,861 | ) | (7.1)% | |||||||||||
Industrial and Field Services | 149,352 | 299,940 | (150,588 | ) | (50.2) | 407,956 | 782,023 | (374,067 | ) | (47.8) | |||||||||||||||||
Kleen Performance Products | 92,557 | 77,077 | 15,480 | 20.1 | 229,803 | 233,301 | (3,498 | ) | (1.5) | ||||||||||||||||||
SK Environmental Services | 175,810 | 165,887 | 9,923 | 6.0 | 505,994 | 482,066 | 23,928 | 5.0 | |||||||||||||||||||
Lodging Services | 15,772 | 14,280 | 1,492 | 10.4 | 48,271 | 70,808 | (22,537 | ) | (31.8) | ||||||||||||||||||
Oil and Gas Field Services | 24,705 | 47,982 | (23,277 | ) | (48.5) | 79,399 | 143,721 | (64,322 | ) | (44.8) | |||||||||||||||||
Corporate Items | (445 | ) | (194 | ) | (251 | ) | (129.4) | 209 | (2,168 | ) | 2,377 | 109.6 | |||||||||||||||
Total | 729,520 | 893,366 | (163,846 | ) | (18.3) | 2,063,113 | 2,562,093 | (498,980 | ) | (19.5) | |||||||||||||||||
Cost of Revenues(2): | |||||||||||||||||||||||||||
Technical Services | 178,456 | 194,105 | (15,649 | ) | (8.1) | 529,410 | 573,149 | (43,739 | ) | (7.6) | |||||||||||||||||
Industrial and Field Services | 115,558 | 223,602 | (108,044 | ) | (48.3) | 322,655 | 588,864 | (266,209 | ) | (45.2) | |||||||||||||||||
Kleen Performance Products | 64,355 | 61,451 | 2,904 | 4.7 | 178,241 | 196,984 | (18,743 | ) | (9.5) | ||||||||||||||||||
SK Environmental Services | 99,415 | 99,583 | (168 | ) | (0.2) | 293,556 | 293,639 | (83 | ) | — | |||||||||||||||||
Lodging Services | 10,681 | 11,644 | (963 | ) | (8.3) | 37,084 | 54,328 | (17,244 | ) | (31.7) | |||||||||||||||||
Oil and Gas Field Services | 25,220 | 41,508 | (16,288 | ) | (39.2) | 77,790 | 126,231 | (48,441 | ) | (38.4) | |||||||||||||||||
Corporate Items | (1,770 | ) | 2,753 | (4,523 | ) | (164.3) | (2,540 | ) | 646 | (3,186 | ) | (493.2) | |||||||||||||||
Total | 491,915 | 634,646 | (142,731 | ) | (22.5) | 1,436,196 | 1,833,841 | (397,645 | ) | (21.7) | |||||||||||||||||
Selling, General & Administrative Expenses: | |||||||||||||||||||||||||||
Technical Services | 20,980 | 15,241 | 5,739 | 37.7 | 60,449 | 59,936 | 513 | 0.9 | |||||||||||||||||||
Industrial and Field Services | 15,215 | 13,878 | 1,337 | 9.6 | 44,658 | 47,309 | (2,651 | ) | (5.6) | ||||||||||||||||||
Kleen Performance Products | 5,399 | 3,503 | 1,896 | 54.1 | 14,204 | 12,846 | 1,358 | 10.6 | |||||||||||||||||||
SK Environmental Services | 29,145 | 26,208 | 2,937 | 11.2 | 84,454 | 79,887 | 4,567 | 5.7 | |||||||||||||||||||
Lodging Services | 987 | 809 | 178 | 22.0 | 3,042 | 3,891 | (849 | ) | (21.8) | ||||||||||||||||||
Oil and Gas Field Services | 3,910 | 4,895 | (985 | ) | (20.1) | 11,635 | 16,690 | (5,055 | ) | (30.3) | |||||||||||||||||
Corporate Items | 35,318 | 28,579 | 6,739 | 23.6 | 104,059 | 100,687 | 3,372 | 3.3 | |||||||||||||||||||
Total | 110,954 | 93,113 | 17,841 | 19.2 | 322,501 | 321,246 | 1,255 | 0.4 | |||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||||
Technical Services | 72,333 | 79,048 | (6,715 | ) | (8.5) | 201,622 | 219,257 | (17,635 | ) | (8.0) | |||||||||||||||||
Industrial and Field Services | 18,579 | 62,460 | (43,881 | ) | (70.3) | 40,643 | 145,850 | (105,207 | ) | (72.1) | |||||||||||||||||
Kleen Performance Products | 22,803 | 12,123 | 10,680 | 88.1 | 37,358 | 23,471 | 13,887 | 59.2 | |||||||||||||||||||
SK Environmental Services | 47,250 | 40,096 | 7,154 | 17.8 | 127,984 | 108,540 | 19,444 | 17.9 | |||||||||||||||||||
Lodging Services | 4,104 | 1,827 | 2,277 | 124.6 | 8,145 | 12,589 | (4,444 | ) | (35.3) | ||||||||||||||||||
Oil and Gas Field Services | (4,425 | ) | 1,579 | (6,004 | ) | (380.2) | (10,026 | ) | 800 | (10,826 | ) | (1,353.3) | |||||||||||||||
Corporate Items | (33,993 | ) | (31,526 | ) | (2,467 | ) | (7.8) | (101,310 | ) | (103,501 | ) | 2,191 | 2.1 | ||||||||||||||
Total | $ | 126,651 | $ | 165,607 | $ | (38,956 | ) | (23.5)% | $ | 304,416 | $ | 407,006 | $ | (102,590 | ) | (25.2)% |
1. | Third party revenue is revenue billed to outside customers by a particular segment. Direct revenue is revenue allocated to the segment performing the provided service. |
2. | Cost of revenue is shown exclusive of items presented separately on the statements of operations which consist of (i) accretion of environmental liabilities and (ii) depreciation and amortization. |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Direct revenues | $ | 271,769 | $ | 288,394 | $ | (16,625 | ) | (5.8 | )% | $ | 791,481 | $ | 852,342 | $ | (60,861 | ) | (7.1 | )% |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Direct revenues | $ | 149,352 | $ | 299,940 | $ | (150,588 | ) | (50.2 | )% | $ | 407,956 | $ | 782,023 | $ | (374,067 | ) | (47.8 | )% |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Direct revenues | $ | 92,557 | $ | 77,077 | $ | 15,480 | 20.1 | % | $ | 229,803 | $ | 233,301 | $ | (3,498 | ) | (1.5 | )% |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Direct revenues | $ | 175,810 | $ | 165,887 | $ | 9,923 | 6.0 | % | $ | 505,994 | $ | 482,066 | $ | 23,928 | 5.0 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Direct revenues | $ | 15,772 | $ | 14,280 | $ | 1,492 | 10.4 | % | $ | 48,271 | $ | 70,808 | $ | (22,537 | ) | (31.8 | )% |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Direct revenues | $ | 24,705 | $ | 47,982 | $ | (23,277 | ) | (48.5 | )% | $ | 79,399 | $ | 143,721 | $ | (64,322 | ) | (44.8 | )% |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Cost of revenues | $ | 178,456 | $ | 194,105 | $ | (15,649 | ) | (8.1 | )% | $ | 529,410 | $ | 573,149 | $ | (43,739 | ) | (7.6)% | ||||||||||||
As a % of Direct Revenue | 65.7 | % | 67.3 | % | (1.6 | )% | 66.9 | % | 67.2 | % | (0.3 | )% |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Cost of revenues | $ | 115,558 | $ | 223,602 | $ | (108,044 | ) | (48.3 | )% | $ | 322,655 | $ | 588,864 | $ | (266,209 | ) | (45.2 | )% | |||||||||||
As a % of Direct Revenue | 77.4 | % | 74.5 | % | 2.9 | % | 79.1 | % | 75.3 | % | 3.8 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Cost of revenues | $ | 64,355 | $ | 61,451 | $ | 2,904 | 4.7 | % | $ | 178,241 | $ | 196,984 | $ | (18,743 | ) | (9.5 | )% | ||||||||||||
As a % of Direct Revenue | 69.5 | % | 79.7 | % | (10.2 | )% | 77.6 | % | 84.4 | % | (6.8 | )% |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Cost of revenues | $ | 99,415 | $ | 99,583 | $ | (168 | ) | (0.2 | )% | $ | 293,556 | $ | 293,639 | $ | (83 | ) | — | % | |||||||||||
As a % of Direct Revenue | 56.5 | % | 60.0 | % | (3.5 | )% | 58.0 | % | 60.9 | % | (2.9 | )% |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Cost of revenues | $ | 10,681 | $ | 11,644 | $ | (963 | ) | (8.3 | )% | $ | 37,084 | $ | 54,328 | $ | (17,244 | ) | (31.7 | )% | |||||||||||
As a % of Direct Revenue | 67.7 | % | 81.5 | % | (13.8 | )% | 76.8 | % | 76.7 | % | 0.1 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Cost of revenues | $ | 25,220 | $ | 41,508 | $ | (16,288 | ) | (39.2 | )% | $ | 77,790 | $ | 126,231 | $ | (48,441 | ) | (38.4 | )% | |||||||||||
As a % of Direct Revenue | 102.1 | % | 86.5 | % | 15.6 | % | 98.0 | % | 87.8 | % | 10.2 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
SG&A | $ | 20,980 | $ | 15,241 | $ | 5,739 | 37.7 | % | $ | 60,449 | $ | 59,936 | $ | 513 | 0.9 | % | |||||||||||||
As a % of Direct Revenue | 7.7 | % | 5.3 | % | 2.4 | % | 7.6 | % | 7.0 | % | 0.6 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
SG&A | $ | 15,215 | $ | 13,878 | $ | 1,337 | 9.6 | % | $ | 44,658 | $ | 47,309 | $ | (2,651 | ) | (5.6 | )% | ||||||||||||
As a % of Direct Revenue | 10.2 | % | 4.6 | % | 5.6 | % | 10.9 | % | 6.0 | % | 4.9 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
SG&A | $ | 5,399 | $ | 3,503 | $ | 1,896 | 54.1 | % | $ | 14,204 | $ | 12,846 | $ | 1,358 | 10.6 | % | |||||||||||||
As a % of Direct Revenue | 5.8 | % | 4.5 | % | 1.3 | % | 6.2 | % | 5.5 | % | 0.7 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
SG&A | $ | 29,145 | $ | 26,208 | $ | 2,937 | 11.2 | % | $ | 84,454 | $ | 79,887 | $ | 4,567 | 5.7 | % | |||||||||||||
As a % of Direct Revenue | 16.6 | % | 15.8 | % | 0.8 | % | 16.7 | % | 16.6 | % | 0.1 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
SG&A | $ | 987 | $ | 809 | $ | 178 | 22.0 | % | $ | 3,042 | $ | 3,891 | $ | (849 | ) | (21.8 | )% | ||||||||||||
As a % of Direct Revenue | 6.3 | % | 5.7 | % | 0.6 | % | 6.3 | % | 5.5 | % | 0.8 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
SG&A | $ | 3,910 | $ | 4,895 | $ | (985 | ) | (20.1 | )% | $ | 11,635 | $ | 16,690 | $ | (5,055 | ) | (30.3 | )% | |||||||||||
As a % of Direct Revenue | 15.8 | % | 10.2 | % | 5.6 | % | 14.7 | % | 11.6 | % | 3.1 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
SG&A | $ | 35,318 | $ | 28,579 | $ | 6,739 | 23.6 | % | $ | 104,059 | $ | 100,687 | $ | 3,372 | 3.3 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
September 30, 2016 | September 30, 2015 | $ Change | % Change | September 30, 2016 | September 30, 2015 | $ Change | % Change | ||||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||||
Technical Services | $ | 72,333 | $ | 79,048 | $ | (6,715 | ) | (8.5)% | $ | 201,622 | $ | 219,257 | $ | (17,635 | ) | (8.0)% | |||||||||||
Industrial and Field Services | 18,579 | 62,460 | (43,881 | ) | (70.3) | 40,643 | 145,850 | (105,207 | ) | (72.1) | |||||||||||||||||
Kleen Performance Products | 22,803 | 12,123 | 10,680 | 88.1 | 37,358 | 23,471 | 13,887 | 59.2 | |||||||||||||||||||
SK Environmental Services | 47,250 | 40,096 | 7,154 | 17.8 | 127,984 | 108,540 | 19,444 | 17.9 | |||||||||||||||||||
Lodging Services | 4,104 | 1,827 | 2,277 | 124.6 | 8,145 | 12,589 | (4,444 | ) | (35.3) | ||||||||||||||||||
Oil and Gas Field Services | (4,425 | ) | 1,579 | (6,004 | ) | (380.2) | (10,026 | ) | 800 | (10,826 | ) | (1,353.3) | |||||||||||||||
Corporate Items | (33,993 | ) | (31,526 | ) | (2,467 | ) | (7.8) | (101,310 | ) | (103,501 | ) | 2,191 | 2.1 | ||||||||||||||
Total | $ | 126,651 | $ | 165,607 | $ | (38,956 | ) | (23.5)% | $ | 304,416 | $ | 407,006 | $ | (102,590 | ) | (25.2)% |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net (loss) income | $ | (10,255 | ) | $ | 40,228 | $ | (27,160 | ) | $ | 43,534 | |||||
Accretion of environmental liabilities | 2,476 | 2,577 | 7,529 | 7,795 | |||||||||||
Depreciation and amortization | 73,360 | 69,060 | 215,655 | 205,189 | |||||||||||
Goodwill impairment charge | 34,013 | — | 34,013 | 31,992 | |||||||||||
Other expense | 198 | 139 | 737 | 390 | |||||||||||
Gain on sale of business | (16,431 | ) | — | (16,431 | ) | — | |||||||||
Interest expense, net | 21,565 | 19,017 | 62,192 | 57,704 | |||||||||||
Provision for income taxes | 21,725 | 34,586 | 27,881 | 60,402 | |||||||||||
Adjusted EBITDA | $ | 126,651 | $ | 165,607 | $ | 304,416 | $ | 407,006 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Depreciation of fixed assets and landfill amortization | $ | 62,603 | $ | 59,150 | $ | 3,453 | 5.8 | % | $ | 185,399 | $ | 175,482 | $ | 9,917 | 5.7 | % | |||||||||||||
Permits and other intangibles amortization | 10,757 | 9,910 | 847 | 8.5 | 30,256 | 29,707 | 549 | 1.8 | |||||||||||||||||||||
Total depreciation and amortization | $ | 73,360 | $ | 69,060 | $ | 4,300 | 6.2 | % | $ | 215,655 | $ | 205,189 | $ | 10,466 | 5.1 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Goodwill impairment charge | $ | 34,013 | $ | — | $ | 34,013 | 100 | % | $ | 34,013 | $ | 31,992 | $ | 2,021 | 6.3 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Gain on sale of business | $ | 16,431 | $ | — | $ | 16,431 | 100 | % | $ | 16,431 | $ | — | $ | 16,431 | 100 | % |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | 2016 over 2015 | September 30, | 2016 over 2015 | ||||||||||||||||||||||||||
2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | ||||||||||||||||||||||
Provision for income taxes | $ | 21,725 | $ | 34,586 | $ | (12,861 | ) | (37.2 | )% | $ | 27,881 | $ | 60,402 | $ | (32,521 | ) | (53.8 | )% |
For the Nine Months Ended | |||||||
(in thousands) | September 30, 2016 | September 30, 2015 | |||||
Net cash from operating activities | $ | 178,827 | $ | 309,593 | |||
Net cash used in investing activities | (333,839 | ) | (270,502 | ) | |||
Net cash from (used in) financing activities | 222,809 | (93,065 | ) |
(in thousands) | September 30, 2016 | December 31, 2015 | $ Change | % Change | ||||||||||
Closure and post-closure liabilities | $ | 62,567 | $ | 56,249 | $ | 6,318 | 11.2 | % | ||||||
Remedial liabilities | 129,081 | 131,992 | (2,911 | ) | (2.2 | ) | ||||||||
Total environmental liabilities | $ | 191,648 | $ | 188,241 | $ | 3,407 | 1.8 | % |
• | Macroeconomic conditions for service companies operating in western Canada’s oilsands region deteriorated in 2016 primarily due to persistently low oil and gas prices. Persistently low prices have caused Lodging’s main customers to significantly reduce, defer, or cancel oil and gas projects that are in, or had been planned for, this region during periods of more robust commodity pricing. |
• | Government regulatory delays related to oil and gas pipeline projects have reduced management’s confidence that these projects will move forward in a timely manner or in the form that had been originally contemplated by their planners. These projects represented a significant portion of Lodging’s future growth in terms of the demand they would mean for temporary accommodation from the Lodging reporting unit. While some of these projects have made recent advancements towards successful government approval, the lack of meaningful progress to date does not provide enough positive evidence that a recovery will be significant enough to improve Lodging’s current forecasted outlook. |
• | There have been consecutive historical quarters where business results were significantly less than internal forecasts, and previous actual results, for the Lodging reporting unit. |
• | During the third quarter ended September 30, 2016, management’s near term outlook was clarified in regards to the business’ projections and the impacts of large scale forest fires which took place in the Fort McMurray area of Alberta, Canada where we have significant Lodging operations. |
• | Due to the factors listed above, management significantly lowered its 2016 forecasts and long-range plans relative to the Lodging reporting unit. |
• | The second quarter is the period of time where greater levels of communication with customers and the receipt of bids and proposals for project work takes place and provide management with more clarity into levels of activity and other economic and business indicators for the latter half of the fiscal year and on into the first quarter of the following year. During the second quarter of 2015, it became apparent that oil and gas exploration and production activity would continue to be lower than for historical periods and lower than previously anticipated. This was evidenced by reduced volume in bid and proposal requests from customers and communications indicating the reduction in customer budgets in these areas, as well as lower than anticipated pricing for our services. |
• | Market and industry reports which management looks to in projecting business conditions and establishing forecast information evidenced more pessimistic views in the near term. The continued depressed price of oil without any upward momentum since December 2014 as well as declining and expected continued decline in rig count for the remainder of 2015 resulted in lower estimates of industry activity in the second half of 2015 and early 2016. |
• | In recognition of lower than anticipated business results and less optimistic market indicators, management significantly lowered its 2015 forecasts relative to the Oil and Gas reporting unit. |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) | |||||||||
July 1, 2016 through July 31, 2016 | 227 | $ | 52.57 | — | $ | 112,178,022 | |||||||
August 1, 2016 through August 31, 2016 | 309 | $ | 51.48 | — | $ | 112,178,022 | |||||||
September 1, 2016 through September 30, 2016 | 146,698 | $ | 46.40 | 133,956 | $ | 105,963,952 | |||||||
Total | 147,234 | $ | 46.42 | 133,956 | $ | 105,963,952 |
(1) | Includes 13,278 shares withheld by us from employees to satisfy employee tax obligations upon vesting of restricted stock units granted to our employees under our long-term equity incentive programs. |
(2) | The average price paid per share of common stock repurchased under the stock repurchase program includes the commissions paid to brokers. |
(3) | On March 13, 2015, the Company's board of directors authorized the repurchase of up to $300 million of the Company's common stock. We have funded and intend to fund the repurchases through available cash resources. The stock repurchase program authorizes us to purchase our common stock on the open market from time to time. The stock repurchases have been and will be made in a manner that complies with applicable U.S. securities laws. The number of shares purchased and the timing of the purchases will depend on a number of factors, including share price, cash required for future business plans, trading volume and other conditions. We have no obligation to repurchase stock under this program and may suspend or terminate the repurchase program at any time. |
Item No. | Description | Location | ||
31.1 | Rule 13a-14a/15d-14(a) Certification of the CEO Alan S. McKim | Filed herewith | ||
31.2 | Rule 13a-14a/15d-14(a) Certification of the CFO Michael L. Battles | Filed herewith | ||
32 | Section 1350 Certifications | Filed herewith | ||
101 | Interactive Data Files Pursuant to Rule 405 of Regulation S-T: Financial statements from the quarterly report on Form 10-Q of Clean Harbors, Inc. for the quarter ended September 30, 2016, formatted in XBRL: (i) Consolidated Balance Sheets, (ii) Unaudited Consolidated Statements of Operations, (iii) Unaudited Consolidated Statements of Comprehensive (Loss) Income, (iv) Unaudited Consolidated Statements of Cash Flows, (v) Unaudited Consolidated Statements of Stockholders’ Equity, and (vi) Notes to Unaudited Consolidated Financial Statements. | * |
* | Interactive data files are furnished and deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
CLEAN HARBORS, INC. | |||
Registrant | |||
By: | /s/ ALAN S. MCKIM | ||
Alan S. McKim | |||
Chairman and Chief Executive Officer | |||
Date: | November 2, 2016 | ||
By: | /s/ MICHAEL L. BATTLES | ||
Michael L. Battles | |||
Executive Vice President and Chief Financial Officer | |||
Date: | November 2, 2016 |
/s/ Alan S. McKim | |
Alan S. McKim | |
Chairman and Chief Executive Officer |
/s/ Michael L. Battles | |
Michael L. Battles | |
Executive Vice President and Chief Financial Officer |
By: | /s/ ALAN S. MCKIM | ||
Alan S. McKim | |||
Chairman and Chief Executive Officer | |||
Date: | November 2, 2016 | ||
By: | /s/ MICHAEL L. BATTLES | ||
Michael L. Battles | |||
Executive Vice President and Chief Financial Officer | |||
Date: | November 2, 2016 |
DOCUMENT AND ENTITY INFORMATION - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Oct. 31, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CLEAN HARBORS INC | |
Entity Central Index Key | 0000822818 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 57,392,673 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Account receivable, allowances aggregating | $ 28,782 | $ 31,426 |
Closure and post-closure liabilities, current portion | 6,057 | 7,229 |
Remedial liabilities, current portion | $ 14,160 | $ 13,166 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 80,000,000 | 80,000,000 |
Common stock, issued shares (in shares) | 57,389,531 | 57,593,201 |
Common stock, outstanding shares (in shares) | 57,389,531 | 57,593,201 |
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Revenues: | ||||
Service revenues | $ 594,225 | $ 760,667 | $ 1,709,018 | $ 2,158,344 |
Product revenues | 135,295 | 132,699 | 354,095 | 403,749 |
Total revenues | 729,520 | 893,366 | 2,063,113 | 2,562,093 |
Cost of revenues (exclusive of items shown separately below) | ||||
Service revenues | 385,542 | 523,676 | 1,148,212 | 1,484,936 |
Product revenues | 106,373 | 110,970 | 287,984 | 348,905 |
Total cost of revenues | 491,915 | 634,646 | 1,436,196 | 1,833,841 |
Selling, general and administrative expenses | 110,954 | 93,113 | 322,501 | 321,246 |
Accretion of environmental liabilities | 2,476 | 2,577 | 7,529 | 7,795 |
Depreciation and amortization | 73,360 | 69,060 | 215,655 | 205,189 |
Goodwill impairment charge | 34,013 | 0 | 34,013 | 31,992 |
Income (loss) from operations | 16,802 | 93,970 | 47,219 | 162,030 |
Other expense | (198) | (139) | (737) | (390) |
Gain on sale of business | 16,431 | 0 | 16,431 | 0 |
Interest expense, net of interest income of $196, $126, $571 and $465, respectively | (21,565) | (19,017) | (62,192) | (57,704) |
(Loss) income before (benefit) provision for income taxes | 11,470 | 74,814 | 721 | 103,936 |
Provision for income taxes | 21,725 | 34,586 | 27,881 | 60,402 |
Net (loss) income | $ (10,255) | $ 40,228 | $ (27,160) | $ 43,534 |
(Loss) earnings per share: | ||||
Basic (in USD per share) | $ (0.18) | $ 0.69 | $ (0.47) | $ 0.74 |
Diluted (in USD per share) | $ (0.18) | $ 0.69 | $ (0.47) | $ 0.74 |
Shares used to compute (loss) earnings per share - Basic (in shares) | 57,487 | 58,161 | 57,575 | 58,799 |
Shares used to compute (loss) earnings per share - Diluted (in shares) | 57,487 | 58,268 | 57,575 | 58,898 |
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Statement [Abstract] | ||||
Interest expense | $ 196 | $ 126 | $ 571 | $ 465 |
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (10,255) | $ 40,228 | $ (27,160) | $ 43,534 |
Other comprehensive (loss) income: | ||||
Unrealized losses on available-for-sale securities (net of taxes of $238, $0, $238 and $0, respectively) | (164) | 0 | (358) | 0 |
Foreign currency translation adjustments | (1,147) | (53,541) | 43,706 | (118,713) |
Other comprehensive (loss) income | (1,311) | (53,541) | 43,348 | (118,713) |
Comprehensive (loss) income | $ (11,566) | $ (13,313) | $ 16,188 | $ (75,179) |
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) on available-for-sale securities, taxes | $ 238 | $ 0 | $ 238 | $ 0 |
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS'S EQUITY (PARENTHETICAL) - $ / shares |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Stockholders' Equity [Abstract] | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
BASIS OF PRESENTATION |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying consolidated interim financial statements are unaudited and include the accounts of Clean Harbors, Inc. and its subsidiaries (collectively, “Clean Harbors,” the “Company” or "we") and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, in the opinion of management, include all adjustments which are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Management has made estimates and assumptions affecting the amounts reported in the Company's consolidated interim financial statements and accompanying footnotes, actual results could differ from those estimates and judgments. The results for interim periods are not necessarily indicative of results for the entire year or any other interim periods. The financial statements presented herein should be read in connection with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, which includes the audited consolidated balance sheet as of December 31, 2015 from which the one presented herein was derived. |
SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES The Company's significant accounting policies are described in Note 2, "Significant Accounting Policies," in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. There have been no material changes in these policies or their application. Recent Accounting Pronouncements Standards implemented In February 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2015-02, Consolidation (Topic 810). The amendment provides guidance regarding amendments to the consolidation analysis. The adoption of ASU 2015-02 as of January 1, 2016 did not have an impact on the Company's consolidated financial statements. In September 2015, FASB issued ASU 2015-16, Business Combinations (Topic 805). The amendment provides guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. This amendment eliminates the requirement to retrospectively account for those adjustments. ASU 2015-16 is applied prospectively to adjustments to provisional amounts that occur after the effective date of this update. The adoption of ASU 2015-16 as of January 1, 2016 did not have a material impact on the Company's consolidated financial statements. Standards to be implemented The Company is currently evaluating the impact that the below standards to be implemented will have on the Company's consolidated financial statements. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). The amendment increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 should be applied using a modified retrospective approach and early adoption is permitted. The amendments in this update are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2018. In March 2016, FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). ASU 2016-08 reduces the potential for diversity in practice arising from inconsistent application of the principal versus agent guidance, as well as the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of Update 2014-09, Revenue from Contracts with Customers (Topic 606). In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). The amendment simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 allows for retrospective or prospective application and early adoption is permitted. The amendments in this update are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. In April 2016, FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). ASU 2016-10 reduces the potential for diversity in initial application, as well as the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of Update 2014-09, Revenue from Contracts with Customers (Topic 606). In May 2016, FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606). ASU 2016-12 provided narrow scope improvements and practical expedients on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of Update 2014-09, Revenue from Contracts with Customers (Topic 606). In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The amendment provides updated guidance on eight specific cash flow issues, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from settlement of insurance claims and corporate-owned life insurance, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. Early adoption is permitted. The amendments in this update are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. |
BUSINESS COMBINATIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS 2016 Acquisitions During the first nine months of 2016, the Company acquired seven businesses that will primarily complement the strategy to create a direct sales model as it relates to the sale of the Company's oil products. These acquisitions provided the Company two additional oil re-refineries while also expanding its used motor oil collection network and providing greater blending and packaging capabilities. These acquisitions provide the Company with greater access to customers in the West Coast region of the United States and additional locations with Part B permits. Operations of these acquisitions are primarily being integrated across the SK Environmental Services and Kleen Performance Products segments with certain operations also being integrated into the Technical Services and Industrial and Field Services segments. The combined purchase price for the seven acquisitions was approximately $205.2 million paid in cash and subject to customary post-closing adjustments. The combined amount of direct revenue from the acquisitions included in the Company's results of operations for each of the three and nine months ended September 30, 2016 was approximately $26.0 million and $38.1 million, respectively. During the three and nine months ended September 30, 2016, the Company incurred acquisition-related costs of approximately $0.7 million and $1.2 million, respectively, in connection with the transactions which are included in selling, general and administrative expenses in the consolidated statements of operations. The allocation of the purchase price was based on preliminary estimates of the fair value of assets acquired and liabilities assumed as of the acquisition dates. Given the recent timing of these transactions, the Company is continuing to obtain information to complete its valuation of these accounts and the associated tax accounting. The components and preliminary allocation of the purchase price consist of the following amounts (in thousands):
Pro forma revenue and earnings amounts on a combined basis as if these acquisitions had been completed on January 1, 2015 are immaterial to the consolidated financial statements of the Company since that date. 2015 Acquisitions Thermo Fluids Inc. On April 11, 2015, the Company completed the acquisition of Heckmann Environmental Services, Inc. (“HES”) and Thermo Fluids Inc. (“TFI”), a wholly-owned subsidiary of HES. The acquisition was accomplished through a purchase by Safety-Kleen, Inc., a wholly-owned subsidiary of the Company, of all of the issued and outstanding shares of HES from Nuverra Environmental Solutions, Inc. HES is a holding company that does not conduct any operations. TFI provides environmental services, including used oil recycling, used oil filter recycling, antifreeze products, parts washers and solvent recycling, and industrial waste management services, including vacuum services, remediation, lab pack and hazardous waste management. The Company acquired TFI for a purchase price of $79.3 million. The acquisition was financed with cash on hand and expands the Company’s environmental services customer base while also complimenting the SK Environmental Services network and presence in the western United States. Results of TFI since acquisition have been included within the SK Environmental Services segment. The allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of April 11, 2015. The Company believes that such information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. The Company finalized the purchase accounting for the acquisition of TFI in the second quarter of 2016. The following table summarizes the recognized amounts of assets acquired and liabilities assumed at April 11, 2015 (in thousands):
Pro forma revenue and earnings amounts on a combined basis as if TFI had been acquired on January 1, 2015 are immaterial to the consolidated financial statements of the Company since that date. Other 2015 Acquisition In December 2015, the Company acquired certain assets and assumed certain defined liabilities of a privately owned company for approximately $14.7 million in cash. That company specializes in the collection and recycling of used oil filters and was a service provider to the SK Environmental Services segment prior to the acquisition. The acquired assets have been integrated into the SK Environmental Services segment. In connection with this acquisition a preliminary goodwill amount of $7.4 million was recognized. |
DISPOSITION OF BUSINESS |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISPOSITION OF BUSINESS | DISPOSITION OF BUSINESS On September 1, 2016, the Company completed the sale of its Catalyst Services business, which was a non-core business previously included within the Industrial and Field Services segment, for approximately $50.1 million ($48.6 million net of cash divested) subject to customary post-closing conditions. As a result of the sale, the Company recognized during the three and nine months ended September 30, 2016 a pre-tax gain of $16.4 million which is included in gain on sale of business in the Company’s consolidated statement of operations. Inclusive within this gain was $1.5 million of transactional related costs. The following table presents the carrying amounts of the Company's Catalyst Services business immediately preceding the disposition on September 1, 2016, in thousands:
The Company evaluated the disposition and determined it did not meet the “major effect” criteria for classification as a discontinued operation largely due to the nature and size of the operations of the disposed of entity. However, the Company determined that the disposition does represent an individually significant component of the Company's business. The following table presents (loss) income attributable to the Catalyst Services business included in the Company's consolidated results of operations for each of the periods shown and through its disposition on September 30, 2016, in thousands:
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INVENTORIES AND SUPPLIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES AND SUPPLIES | INVENTORIES AND SUPPLIES Inventories and supplies consisted of the following (in thousands):
The increase in oil and oil products as of September 30, 2016 as compared to December 31, 2015 was a result of the Company's recent acquisitions and implementation of its closed loop direct sales model. As of September 30, 2016 and December 31, 2015, other inventories consisted primarily of cleaning fluids, such as absorbents and wipers, and automotive fluids, such as windshield washer fluid and antifreeze. |
PROPERTY, PLANT AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following (in thousands):
Interest in the amount of $1.5 million and $4.0 million was capitalized to fixed assets during the three and nine months ended September 30, 2016, respectively. Interest in the amount of $0.6 million and $1.2 million was capitalized to fixed assets during the three and nine months ended September 30, 2015, respectively. Depreciation expense, inclusive of landfill amortization, was $62.6 million and $185.4 million for the three and nine months ended September 30, 2016, respectively. Depreciation expense, inclusive of landfill amortization, was $59.2 million and $175.5 million for the three and nine months ended September 30, 2015, respectively. |
GOODWILL AND OTHER INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in goodwill for the nine months ended September 30, 2016 were as follows (in thousands):
The Company assesses goodwill for impairment on an annual basis as of December 31, or at an interim date when events or changes in the business environment would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company conducted the annual impairment test of goodwill for all reporting units as of December 31, 2015 and determined that no adjustment to the carrying value of goodwill for any reporting units was necessary because the fair value of each of the reporting units exceeded that reporting unit's respective carrying value. As disclosed in the Company’s quarterly report on Form 10-Q for the period ended June 30, 2016, the Company noted that its Lodging reporting unit has been negatively impacted by persistently weak oil and gas prices that have negatively impacted the Western Canadian energy market and that if these economic difficulties persisted, future impairments might be required. During the first and second quarters of 2016, the Company evaluated the reporting unit’s performance along with other business specific and macroeconomic factors and concluded that no interim impairment test was necessary. During the quarter ended September 30, 2016 certain events and changes in circumstances arose which led management to conclude that the fair value of the Lodging reporting unit was more likely than not less than its carrying value, and therefore an interim goodwill impairment test was performed. The primary events and changes in circumstances which led to this conclusion were:
In performing Step I of the interim goodwill impairment test, the estimated fair value of the Lodging reporting unit was determined using an income approach with discounted cash flows which were compared to the reporting unit’s carrying value as of September 30, 2016. Based on the results of that evaluation, the carrying amount of the reporting unit, including $34.0 million of goodwill, exceeded Lodging’s estimated fair value and as a result the Company performed Step II of the goodwill impairment test to determine the amount of goodwill impairment that would need to be recognized. Step II of the goodwill impairment test required the Company to perform a theoretical purchase price allocation for Lodging to determine the implied fair value of its goodwill and then compare that implied fair value to its recorded amount. Estimates and assumptions were used to determine the fair values for Lodging’s long-lived assets in Step II and these involved the use of significant professional judgment on the part of management. The classes of assets that were affected by these estimates and assumptions related most significantly to property, plant, and equipment, goodwill, and intangible assets. Based on the results of this test the implied fair value of goodwill was determined to be $0. Accordingly, the Company recognized a goodwill impairment charge equal to its recorded amount, or $34.0 million, as of September 30, 2016. The factors contributing to the $34.0 million goodwill impairment charge principally related to events and changes in circumstances discussed above which negatively impacted the Company’s prospective financial information in its discounted cash flow model and the reporting unit's estimated fair value. Lower levels of pricing and an unfavorable change in product mix that reduced expected profit became evident during the third quarter ended September 30, 2016 as management updated the Company's long term projections for the business and as a result decreased the reporting unit’s anticipated future cash flows as compared to those estimated previously. These factors also provided evidence of a longer than expected recovery from current industry lows, which negatively impacted the estimated levels of cash flows in future periods that are assumed in the cash flow model. These factors adversely affected the estimated fair value of the reporting unit and ultimately led to the recognition of the goodwill impairment charge. As a result of the sale of the Catalyst Services business discussed in Note 4, "Disposition of Business" to the accompanying financial statements, a step 1 goodwill impairment test was also performed relative to the remaining goodwill of $25.1 million in the Industrial Services reporting unit. The results of this test indicated that no impairment of the goodwill exists as of September 30, 2016. Significant judgments and unobservable inputs categorized as Level III in the fair value hierarchy are inherent in the impairment tests performed and include assumptions about the amount and timing of expected future cash flows, growth rates, and the determination of appropriate discount rates. The Company believes that the assumptions used in its annual and any interim date impairment tests are reasonable, but variations in any of the assumptions may result in different calculations of fair values and impairment charges. The Company also performed an analysis to determine whether the carrying values of the Lodging segment's finite-lived intangible and other long lived assets may not be entirely recoverable. As of September 30, 2016, the Lodging reporting unit had property, plant and equipment of $99.8 million and other intangible assets of $6.0 million. Based on the analysis performed, sufficient future cash flows are anticipated over those assets' remaining lives to demonstrate recoverability. Thus no impairment charge was recorded related to those other long lived assets. As of September 30, 2016 and December 31, 2015, the Company's total finite-lived and indefinite-lived intangible assets consisted of the following (in thousands):
Amortization expense of permits and other intangible assets was $10.8 million and $30.3 million for the three and nine months ended September 30, 2016, respectively. Amortization expense of permits and other intangible assets was $9.9 million and $29.7 million for the three and nine months ended September 30, 2015, respectively. The expected amortization of the net carrying amount of finite-lived intangible assets at September 30, 2016 was as follows (in thousands):
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ACCRUED EXPENSES |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following at September 30, 2016 and December 31, 2015 (in thousands):
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CLOSURE AND POST-CLOSURE LIABILITIES |
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Asset Retirement Obligation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CLOSURE AND POST-CLOSURE LIABILITIES | CLOSURE AND POST-CLOSURE LIABILITIES The changes to closure and post-closure liabilities (also referred to as “asset retirement obligations”) from January 1, 2016 through September 30, 2016 were as follows (in thousands):
All of the landfill facilities included in the above were active as of September 30, 2016. There were no significant charges (benefits) in 2016 resulting from changes in estimates for closure and post-closure liabilities. New asset retirement obligations incurred during the first nine months of 2016 were discounted at the credit-adjusted risk-free rate of 6.23%. |
REMEDIAL LIABILITIES |
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Environmental Remediation Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REMEDIAL LIABILITIES | REMEDIAL LIABILITIES The changes to remedial liabilities for the nine months ended September 30, 2016 were as follows (in thousands):
In the nine months ended September 30, 2016, there were no significant charges (benefits) resulting from changes in estimates for remedial liabilities. |
FINANCING ARRANGEMENTS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS The following table is a summary of the Company’s financing arrangements (in thousands):
At September 30, 2016 and December 31, 2015, the fair value of the Company's 2020 Notes was $824.0 million and $812.0 million, respectively, based on quoted market prices for the instrument. The fair value of the 2020 Notes is considered a Level 2 measure according to the fair value hierarchy. On March 14, 2016, the Company issued $250.0 million aggregate principal amount as additional notes under the indenture pursuant to which the Company previously issued on December 7, 2012 $600.0 million aggregate principal amount of 2021 Notes. Interest payments are paid semi-annually on June 1 and December 1 of each year. At September 30, 2016 and December 31, 2015, the fair value of the Company's 2021 Notes was $866.1 million and $599.5 million, respectively, based on quoted market prices for the instrument. The fair value of the 2021 Notes is considered a Level 2 measure according to the fair value hierarchy. The Company also maintains a revolving credit facility which as of September 30, 2016 and December 31, 2015, had no outstanding loan balances. At September 30, 2016, $201.4 million was available to borrow and outstanding letters of credit were $142.0 million. At December 31, 2015, $178.5 million was available to borrow and outstanding letters of credit were $144.6 million. The revolving credit facility is guaranteed by all of Clean Harbors, Inc.'s ("Parent's") domestic subsidiaries and secured by substantially all of the Parent’s and its domestic subsidiaries’ assets. Available credit for Parent and its domestic subsidiaries is generally limited to 85% of their eligible accounts receivable and 100% of their cash deposited in a controlled account with the agent. Available credit for Parent’s Canadian subsidiaries is generally limited to 85% of their eligible accounts receivable and 100% of their cash deposited in a controlled account with the agent’s Canadian affiliate. The obligations of the Canadian subsidiaries under the revolving credit facility are guaranteed by all of Parent’s Canadian subsidiaries and secured by the accounts receivable of the Canadian subsidiaries, but the Canadian subsidiaries do not guarantee and are not otherwise responsible for the obligations of Parent or its domestic subsidiaries. On November 1, 2016, the Company entered into an amended and restated credit agreement for its revolving credit facility. Under the amended and restated agreement, the terms are substantially the same as under the prior agreement, but the facility termination date has been extended, subject to certain conditions, until November 1, 2021. |
(LOSS) EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(LOSS) EARNINGS PER SHARE | (LOSS) EARNINGS PER SHARE The following are computations of basic and diluted (loss) earnings per share (in thousands except for per share amounts):
As a result of the net loss reported for the three and nine months ended September 30, 2016, all then outstanding stock options, restricted stock awards and performance awards totaling 835,482 were excluded from the calculation of diluted (loss) earnings per share as their inclusion would have an antidilutive effect. For the three and nine months ended September 30, 2015, the dilutive effect of all then outstanding options, restricted stock and performance awards is included in the EPS calculations above except for 274,257 of outstanding performance stock awards for which the performance criteria were not attained at that time and 10,704 and 42,642, respectively, of restricted stock awards which were antidilutive at that time. |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in accumulated other comprehensive loss by component and related tax effects for the nine months ended September 30, 2016 were as follows (in thousands):
There were no reclassifications out of accumulated other comprehensive loss during the three and nine months ended September 30, 2016 and 2015. |
STOCK-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Total stock-based compensation cost charged to selling, general and administrative expenses for the three and nine months ended September 30, 2016 was $3.0 million and $7.7 million, respectively. Total stock-based compensation cost charged to selling, general and administrative expenses for the three and nine months ended September 30, 2015 was $0.5 million and $6.6 million, respectively. During the three months ended September 30, 2015, the Company reversed $1.4 million of stock based compensation for performance stock awards originally issued in 2014 as management determined it was no longer probable that a portion of the performance targets would be earned. The total income tax benefit recognized in the consolidated statements of operations from stock-based compensation was $0.9 million and $2.3 million for the three and nine months ended September 30, 2016, respectively. The total income tax benefit recognized in the consolidated statements of operations from stock-based compensation was $0.1 million and $1.8 million for the three and nine months ended September 30, 2015, respectively. Restricted Stock Awards The following information relates to restricted stock awards that have been granted to employees and directors under the Company's equity incentive plans (the "Plans"). The restricted stock awards are not transferable until vested and the restrictions generally lapse upon the achievement of continued employment over a three-to-five-year period or service as a director until the following annual meeting of shareholders. The fair value of each restricted stock grant is based on the closing price of the Company's common stock on the date of grant and is amortized to expense over its vesting period. The following table summarizes information about restricted stock awards for the nine months ended September 30, 2016:
As of September 30, 2016, there was $17.2 million of total unrecognized compensation cost arising from restricted stock awards under the Company's Plans. This cost is expected to be recognized over a weighted average period of 3.0 years. The total fair value of restricted stock vested during the three and nine months ended September 30, 2016 was $1.8 million and $7.9 million, respectively. The total fair value of restricted stock vested during the three and nine months ended September 30, 2015 was $0.6 million and $6.8 million, respectively. Performance Stock Awards The following information relates to performance stock awards that have been granted to employees under the Company's Plans. Performance stock awards are subject to performance criteria established by the compensation committee of the Company's board of directors prior to or at the date of grant. The vesting of the performance stock awards is based on achieving such targets typically based on revenue, Adjusted EBITDA margin, return on invested capital percentage and Total Recordable Incident Rate. In addition, performance stock awards include continued service conditions. The fair value of each performance stock award is based on the closing price of the Company's common stock on the date of grant and is amortized to expense over the service period if achievement of performance measures is considered probable. The following table summarizes information about performance stock awards for the nine months ended September 30, 2016:
As of September 30, 2016, there was $0.2 million of total unrecognized compensation cost arising from unvested performance stock awards deemed probable of vesting under the Company's Plans. No performance awards vested during the three months ended September 30, 2016. The total fair value of performance awards vested during the nine months ended September 30, 2016 was $0.4 million. The total fair value of performance awards vested during the nine months ended September 30, 2015 was $0.3 million. No performance awards vested during the three months ended September 30, 2015. Common Stock Repurchases On March 13, 2015, the Company's board of directors authorized the repurchase of up to $300 million of the Company's common stock. During the three and nine months ended September 30, 2016, the Company repurchased and retired a total of 0.1 million shares and 0.3 million shares, respectively, of the Company's common stock for a total cost of $6.2 million and $16.3 million, respectively. During the three and nine months ended September 30, 2015, the Company repurchased and retired a total of 0.8 million shares and 1.3 million shares, respectively, of the Company's common stock for a total cost of $37.6 million and $69.8 million, respectively. Through September 30, 2016, the Company has repurchased and retired a total of 3.7 million shares of the Company's common stock for a total cost of $194.0 million under this program. As of September 30, 2016, an additional $106.0 million remains available for repurchase of shares under the current authorized program. |
COMMITMENTS AND CONTINGENCIES |
9 Months Ended |
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Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal and Administrative Proceedings The Company and its subsidiaries are subject to legal proceedings and claims arising in the ordinary course of business. Actions filed against the Company arise from commercial and employment-related claims including alleged class actions related to sales practices and wage and hour claims. The plaintiffs in these actions may be seeking damages or injunctive relief or both. These actions are in various jurisdictions and stages of proceedings, and some are covered in part by insurance. In addition, the Company’s waste management services operations are regulated by federal, state, provincial and local laws enacted to regulate discharge of materials into the environment, remediation of contaminated soil and groundwater or otherwise protect the environment. This ongoing regulation results in the Company frequently becoming a party to legal or administrative proceedings involving all levels of governmental authorities and other interested parties. The issues involved in such proceedings generally relate to alleged violations of existing permits and licenses or alleged responsibility under federal or state Superfund laws to remediate contamination at properties owned either by the Company or by other parties (“third party sites”) to which either the Company or the prior owners of certain of the Company’s facilities shipped wastes. At September 30, 2016 and December 31, 2015, the Company had recorded reserves of $20.9 million and $21.9 million, respectively, in the Company's financial statements for actual or probable liabilities related to the legal and administrative proceedings in which the Company was then involved, the principal of which are described below. At September 30, 2016 and December 31, 2015, the Company also believed that it was reasonably possible that the amount of these potential liabilities could be as much as $1.8 million and $1.9 million more, respectively. The Company periodically adjusts the aggregate amount of these reserves when actual or probable liabilities are paid or otherwise discharged, new claims arise, or additional relevant information about existing or probable claims becomes available. As of September 30, 2016 and December 31, 2015, the $20.9 million and $21.9 million, respectively, of reserves consisted of (i) $18.3 million and $18.9 million, respectively, related to pending legal or administrative proceedings, including Superfund liabilities, which were included in remedial liabilities on the consolidated balance sheets, and (ii) $2.6 million and $3.0 million, respectively, primarily related to federal, state and provincial enforcement actions, which were included in accrued expenses on the consolidated balance sheets. As of September 30, 2016, the principal legal and administrative proceedings in which the Company was involved, or which had been terminated during 2016, were as follows: Ville Mercier. In September 2002, the Company acquired the stock of a subsidiary (the "Mercier Subsidiary") which owns a hazardous waste incinerator in Ville Mercier, Quebec (the "Mercier Facility"). The property adjacent to the Mercier Facility, which is also owned by the Mercier Subsidiary, is now contaminated as a result of actions dating back to 1968, when the Government of Quebec issued to a company unrelated to the Mercier Subsidiary two permits to dump organic liquids into lagoons on the property. In 1999, Ville Mercier and three neighboring municipalities filed separate legal proceedings against the Mercier Subsidiary and the Government of Quebec. In 2012, the municipalities amended their existing statement of claim to seek $2.9 million (Cdn) in general damages and $10.0 million (Cdn) in punitive damages, plus interest and costs, as well as injunctive relief. Both the Government of Quebec and the Company have filed summary judgment motions against the municipalities. The parties are currently attempting to negotiate a resolution and hearings on the motions have been delayed. In September 2007, the Quebec Minister of Sustainable Development, Environment and Parks issued a Notice pursuant to Section 115.1 of the Environment Quality Act, superseding Notices issued in 1992, which are the subject of the pending litigation. The more recent Notice notifies the Mercier Subsidiary that, if the Mercier Subsidiary does not take certain remedial measures at the site, the Minister intends to undertake those measures at the site and claim direct and indirect costs related to such measures. The Company has accrued for costs expected to be incurred relative to the resolution of this matter and believes this matter will not have a future material effect on its financial position or results of operations. Safety-Kleen Legal Proceedings. On December 28, 2012, the Company acquired Safety-Kleen, Inc. ("Safety-Kleen") and thereby became subject to the legal proceedings in which Safety-Kleen was a party on that date. In addition to certain Superfund proceedings in which Safety-Kleen has been named as a potentially responsible party as described below under “Superfund Proceedings,” the principal such legal proceedings involving Safety-Kleen which were outstanding as of September 30, 2016 were as follows: Product Liability Cases. Safety-Kleen has been named as a defendant in various lawsuits that are currently pending in various courts and jurisdictions throughout the United States, including approximately 62 proceedings (excluding cases which have been settled but not formally dismissed) as of September 30, 2016, wherein persons claim personal injury resulting from the use of Safety-Kleen's parts cleaning equipment or cleaning products. These proceedings typically involve allegations that the solvent used in Safety-Kleen's parts cleaning equipment contains contaminants and/or that Safety-Kleen's recycling process does not effectively remove the contaminants that become entrained in the solvent during their use. In addition, certain claimants assert that Safety-Kleen failed to warn adequately the product user of potential risks, including an historic failure to warn that solvent contains trace amounts of toxic or hazardous substances such as benzene. Safety-Kleen maintains insurance that it believes will provide coverage for these product liability claims (over amounts accrued for self-insured retentions and deductibles in certain limited cases), except for punitive damages to the extent not insurable under state law or excluded from insurance coverage. Safety-Kleen also believes that these claims lack merit and has historically vigorously defended, and intends to continue to vigorously defend, itself and the safety of its products against all of these claims. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. Consequently, Safety-Kleen is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters as of September 30, 2016. From January 1, 2016 to September 30, 2016, 18 product liability claims were settled or dismissed. Due to the nature of these claims and the related insurance, the Company did not incur any expense as Safety-Kleen's insurance provided coverage in full for all such claims. Safety-Kleen may be named in similar, additional lawsuits in the future, including claims for which insurance coverage may not be available. Superfund Proceedings The Company has been notified that either the Company (which, since December 28, 2012, includes Safety-Kleen) or the prior owners of certain of the Company's facilities for which the Company may have certain indemnification obligations have been identified as potentially responsible parties ("PRPs") or potential PRPs in connection with 129 sites which are subject to or are proposed to become subject to proceedings under federal or state Superfund laws. Of the 129 sites, three (including the BR Facility described below) involve facilities that are now owned or leased by the Company and 126 involve third party sites to which either the Company or the prior owners of certain of the Company’s facilities shipped wastes. Of the 126 third party sites, 32 are now settled, 17 are currently requiring expenditures on remediation and 77 are not currently requiring expenditures on remediation. In connection with each site, the Company has estimated the extent, if any, to which it may be subject, either directly or as a result of any indemnification obligations, for cleanup and remediation costs, related legal and consulting costs associated with PRP investigations, settlements, and related legal and administrative proceedings. The amount of such actual and potential liability is inherently difficult to estimate because of, among other relevant factors, uncertainties as to the legal liability (if any) of the Company or the prior owners of certain of the Company's facilities to contribute a portion of the cleanup costs, the assumptions that must be made in calculating the estimated cost and timing of remediation, the identification of other PRPs and their respective capability and obligation to contribute to remediation efforts, and the existence and legal standing of indemnification agreements (if any) with prior owners, which may either benefit the Company or subject the Company to potential indemnification obligations. Clean Harbors believes its potential liability could exceed $100,000 at 11 of the 126 third party sites. BR Facility. The Company acquired in 2002 a former hazardous waste incinerator and landfill in Baton Rouge (the "BR Facility"), for which operations had been previously discontinued by the prior owner. In September 2007, the EPA issued a special notice letter to the Company related to the Devil's Swamp Lake Site ("Devil's Swamp") in East Baton Rouge Parish, Louisiana. Devil's Swamp includes a lake located downstream of an outfall ditch where wastewater and storm water have been discharged, and Devil's Swamp is proposed to be included on the National Priorities List due to the presence of Contaminants of Concern ("COC") cited by the EPA. These COCs include substances of the kind found in wastewater and storm water discharged from the BR Facility in past operations. The EPA originally requested COC generators to submit a good faith offer to conduct a remedial investigation feasibility study directed towards the eventual remediation of the site. The Company is currently performing corrective actions at the BR Facility under an order issued by the Louisiana Department of Environmental Quality, and has begun conducting the remedial investigation and feasibility study under an order issued by the EPA. The Company cannot presently estimate the potential additional liability for the Devil's Swamp cleanup until a final remedy is selected by the EPA. Third Party Sites. Of the 126 third party sites at which the Company has been notified it is a PRP or potential PRP or may have indemnification obligations, Clean Harbors has an indemnification agreement at 11 of these sites with ChemWaste, a former subsidiary of Waste Management, Inc., and at six additional of these third party sites, Safety-Kleen has a similar indemnification agreement with McKesson Corporation. These agreements indemnify the Company (which now includes Safety-Kleen) with respect to any liability at the 17 sites for waste disposed prior to the Company's (or Safety-Kleen's) acquisition of the former subsidiaries of Waste Management or McKesson which had shipped wastes to those sites. Accordingly, Waste Management and McKesson are paying all costs of defending those subsidiaries in those 17 cases, including legal fees and settlement costs. However, there can be no guarantee that the Company's ultimate liabilities for those sites will not exceed the amount recorded or that indemnities applicable to any of these sites will be available to pay all or a portion of related costs. Except for the indemnification agreements which the Company holds from ChemWaste, McKesson and one other entity, the Company does not have an indemnity agreement with respect to any of the 126 third party sites discussed above. Federal, State and Provincial Enforcement Actions From time to time, the Company pays fines or penalties in regulatory proceedings relating primarily to waste treatment, storage or disposal facilities. As of September 30, 2016 and December 31, 2015, there were five and six proceedings, respectively, for which the Company reasonably believed that the sanctions could equal or exceed $100,000. The Company believes that the fines or other penalties in these or any of the other regulatory proceedings will, individually or in the aggregate, not have a material effect on its financial condition, results of operations or cash flows. |
INCOME TAXES |
9 Months Ended |
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Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company records a tax provision or benefit on an interim basis using an estimated annual effective tax rate. This rate is applied to the current period ordinary income or loss to determine the income tax provision or benefit allocated to the interim period. Losses from jurisdictions for which no benefit can be recognized and the income tax effects of unusual or infrequent items are excluded from the estimated annual effective tax rate and are recognized in the impacted interim period. The estimated annual effective tax rate may be significantly impacted by projected earnings mix by tax jurisdiction. Adjustments to the estimated annual effective income tax rate are recognized in the period when such estimates are revised. The Company did not record any tax charges or benefits as a result of the goodwill impairment charges recorded in the third quarter of 2016 and in the second quarter of 2015. Absent the impact of the impairment charges on pre-tax income from operations the Company’s effective tax rate for the three and nine months ended September 30, 2016 was 47.8% and 80.3% compared to 46.2% and 44.4%, respectively, for the same periods in 2015. The variations in the effective income tax rates for the three and nine months ended September 30, 2016 as compared to more customary relationships between pre-tax income and the provision for income taxes were primarily due to the Company not recognizing income tax benefits from current operating losses related to certain Canadian entities as well as the impacts of the non-deductible goodwill impairment charge. As of September 30, 2016 and December 31, 2015, the Company had recorded $1.8 million and $2.1 million, respectively, of liabilities for unrecognized tax benefits and $0.3 million and $0.4 million of interest, respectively. Due to expiring statute of limitation periods, the Company believes that total unrecognized tax benefits will not decrease within the next 12 months. |
SEGMENT REPORTING |
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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. As of September 30, 2016, the Company's operations were 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 certain operations for which the revenues are insignificant and not allocated to the segments for internal reporting purposes. 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 (loss) income plus accretion of environmental liabilities, depreciation and amortization, net interest expense, provision for income taxes, other non-cash charges not deemed representative of fundamental segment results and excludes other expense. Transactions between the segments are accounted for at the Company’s best estimate based on similar transactions with outside customers. The following table reconciles third party revenues to direct revenues for the three and nine months ended September 30, 2016 and 2015 (in thousands):
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.
The following table presents certain assets by reportable segment and in the aggregate (in thousands):
The following table presents total assets by geographical area (in thousands):
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GUARANTOR AND NON-GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION |
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Guarantor and Non-Guarantor Subsidiaries Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GUARANTOR AND NON-GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION | GUARANTOR AND NON-GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION The 2020 Notes and the 2021 Notes are guaranteed by substantially all of the Company's subsidiaries organized in the United States (the "U.S. Guarantor Subsidiaries"). Each U.S. Guarantor Subsidiary is a 100% owned subsidiary of Clean Harbors, Inc. ("Parent") and its guarantee is both full and unconditional and joint and several. The guarantees, are however, subject to customary release provisions under which, in particular, the guarantee of any U.S. Guarantor Subsidiary will be released if the Company sells such subsidiary to an unrelated third party in accordance with the terms of the indenture which governs the notes. The 2020 Notes and the 2021 Notes are not guaranteed by Parent's Canadian or other foreign subsidiaries (the "Foreign Non-Guarantor Subsidiaries"). The following presents supplemental condensed consolidating financial information for Parent, the U.S. Guarantor Subsidiaries and the Foreign Non-Guarantor Subsidiaries, respectively. As discussed further in Note 11, “Financing Arrangements,” to the Company's consolidated financial statements included herein, on March 14, 2016, Parent issued $250.0 million aggregate principal amount of additional 2021 Notes. In connection with this offering, the proceeds were then transferred to the US Guarantor Subsidiaries and are reflected as an investment of Parent in the U.S. Guarantor Subsidiaries for the period ending September 30, 2016. Following is the condensed consolidating balance sheet at September 30, 2016 (in thousands):
Following is the condensed consolidating balance sheet at December 31, 2015 (in thousands):
Following is the consolidating statement of operations for the three months ended September 30, 2016 (in thousands):
Following is the consolidating statement of operations for the three months ended September 30, 2015 (in thousands):
Following is the consolidating statement of operations for the nine months ended September 30, 2016 (in thousands):
Following is the consolidating statement of operations for the nine months ended September 30, 2015 (in thousands):
Following is the condensed consolidating statement of cash flows for the nine months ended September 30, 2016 (in thousands):
Following is the condensed consolidating statement of cash flows for the nine months ended September 30, 2015 (in thousands):
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SIGNIFICANT ACCOUNTING POLICIES (Policies) |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Standards implemented In February 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2015-02, Consolidation (Topic 810). The amendment provides guidance regarding amendments to the consolidation analysis. The adoption of ASU 2015-02 as of January 1, 2016 did not have an impact on the Company's consolidated financial statements. In September 2015, FASB issued ASU 2015-16, Business Combinations (Topic 805). The amendment provides guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. This amendment eliminates the requirement to retrospectively account for those adjustments. ASU 2015-16 is applied prospectively to adjustments to provisional amounts that occur after the effective date of this update. The adoption of ASU 2015-16 as of January 1, 2016 did not have a material impact on the Company's consolidated financial statements. Standards to be implemented The Company is currently evaluating the impact that the below standards to be implemented will have on the Company's consolidated financial statements. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). The amendment increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 should be applied using a modified retrospective approach and early adoption is permitted. The amendments in this update are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2018. In March 2016, FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). ASU 2016-08 reduces the potential for diversity in practice arising from inconsistent application of the principal versus agent guidance, as well as the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of Update 2014-09, Revenue from Contracts with Customers (Topic 606). In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). The amendment simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 allows for retrospective or prospective application and early adoption is permitted. The amendments in this update are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. In April 2016, FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). ASU 2016-10 reduces the potential for diversity in initial application, as well as the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of Update 2014-09, Revenue from Contracts with Customers (Topic 606). In May 2016, FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606). ASU 2016-12 provided narrow scope improvements and practical expedients on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of Update 2014-09, Revenue from Contracts with Customers (Topic 606). In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The amendment provides updated guidance on eight specific cash flow issues, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from settlement of insurance claims and corporate-owned life insurance, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. Early adoption is permitted. The amendments in this update are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. |
BUSINESS COMBINATIONS (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the recognized amounts of assets acquired and liabilities assumed at April 11, 2015 (in thousands):
The components and preliminary allocation of the purchase price consist of the following amounts (in thousands):
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DISPOSITION OF BUSINESS (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposition of Business | The following table presents (loss) income attributable to the Catalyst Services business included in the Company's consolidated results of operations for each of the periods shown and through its disposition on September 30, 2016, in thousands:
The following table presents the carrying amounts of the Company's Catalyst Services business immediately preceding the disposition on September 1, 2016, in thousands:
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INVENTORIES AND SUPPLIES (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventories and supplies consisted of the following (in thousands):
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands):
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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes to goodwill | The changes in goodwill for the nine months ended September 30, 2016 were as follows (in thousands):
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Summary of indefinite-lived intangible assets | As of September 30, 2016 and December 31, 2015, the Company's total finite-lived and indefinite-lived intangible assets consisted of the following (in thousands):
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Schedule of finite-Lived intangible assets | As of September 30, 2016 and December 31, 2015, the Company's total finite-lived and indefinite-lived intangible assets consisted of the following (in thousands):
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Schedule of expected amortization for the net carrying amount of finite lived intangible assets | The expected amortization of the net carrying amount of finite-lived intangible assets at September 30, 2016 was as follows (in thousands):
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ACCRUED EXPENSES (Tables) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued expenses | Accrued expenses consisted of the following at September 30, 2016 and December 31, 2015 (in thousands):
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CLOSURE AND POST-CLOSURE LIABILITIES (Tables) |
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Asset Retirement Obligation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of closure and post-closure liabilities | The changes to closure and post-closure liabilities (also referred to as “asset retirement obligations”) from January 1, 2016 through September 30, 2016 were as follows (in thousands):
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REMEDIAL LIABILITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental Remediation Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes to remedial liabilities | The changes to remedial liabilities for the nine months ended September 30, 2016 were as follows (in thousands):
|
FINANCING ARRANGEMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the entity's financial arrangements | The following table is a summary of the Company’s financing arrangements (in thousands):
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(LOSS) EARNINGS PER SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of basic and diluted earnings per share computations | The following are computations of basic and diluted (loss) earnings per share (in thousands except for per share amounts):
|
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive loss | The changes in accumulated other comprehensive loss by component and related tax effects for the nine months ended September 30, 2016 were as follows (in thousands):
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STOCK-BASED COMPENSATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restricted stock awards | The following table summarizes information about restricted stock awards for the nine months ended September 30, 2016:
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Summary of performance stock awards | The following table summarizes information about performance stock awards for the nine months ended September 30, 2016:
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SEGMENT REPORTING (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of third party revenues to direct revenues | The following table reconciles third party revenues to direct revenues for the three and nine months ended September 30, 2016 and 2015 (in thousands):
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Reconciliation to consolidated statements of income to adjusted EBITDA | 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.
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PP&E, intangible assets and total assets by segment | The following table presents certain assets by reportable segment and in the aggregate (in thousands):
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Total assets by geographical area | The following table presents total assets by geographical area (in thousands):
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GUARANTOR AND NON-GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor and Non-Guarantor Subsidiaries Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating balance sheet | Following is the condensed consolidating balance sheet at September 30, 2016 (in thousands):
Following is the condensed consolidating balance sheet at December 31, 2015 (in thousands):
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Schedule of condensed consolidating statement of income | Following is the consolidating statement of operations for the three months ended September 30, 2016 (in thousands):
Following is the consolidating statement of operations for the three months ended September 30, 2015 (in thousands):
Following is the consolidating statement of operations for the nine months ended September 30, 2016 (in thousands):
Following is the consolidating statement of operations for the nine months ended September 30, 2015 (in thousands):
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Schedule of condensed consolidating statement of cash flows | Following is the condensed consolidating statement of cash flows for the nine months ended September 30, 2016 (in thousands):
Following is the condensed consolidating statement of cash flows for the nine months ended September 30, 2015 (in thousands):
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BUSINESS COMBINATIONS (Narrative) (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Apr. 11, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
aquisition
rerefinery
|
|
Business Acquisition [Line Items] | ||||
Goodwill, acquired during period | $ 50,067 | |||
2016 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Number of acquisitions | aquisition | 7 | |||
Number of re-refineries acquired | rerefinery | 2 | |||
Purchase price | $ 205,200 | |||
Revenue from acquisitions | $ 26,000 | 38,100 | ||
Acquisition-related costs | $ 700 | $ 1,200 | ||
Thermo Fluids Inc. | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 79,300 | |||
Privately Owned Domestic Company | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 14,700 | |||
Goodwill, acquired during period | $ 7,400 |
DISPOSITION OF BUSINESS (Narrative) (Details) - Catalyst Services - Disposal Group, Disposed of by Sale, Not Discontinued Operations - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 01, 2016 |
Sep. 30, 2016 |
Sep. 30, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale | $ 50.1 | ||
Proceeds from sale, net of cash divested | 48.6 | ||
Gain on sale | $ 16.4 | $ 16.4 | |
Transaction costs | $ 1.5 | $ 1.5 | $ 1.5 |
DISPOSITION OF BUSINESS (Carrying Amount of Catalyst) (Details) - Catalyst Services - Disposal Group, Disposed of by Sale, Not Discontinued Operations $ in Thousands |
Sep. 01, 2016
USD ($)
|
---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total current assets | $ 19,135 |
Property, plant and equipment, net | 11,126 |
Total other assets | 6,500 |
Total assets divested | 36,761 |
Total current liabilities | 4,040 |
Total other liabilities | 566 |
Total liabilities divested | 4,606 |
Net carrying value divested | $ 32,155 |
DISPOSITION OF BUSINESS (Income (Loss) Attributable to Catalyst Services) (Details) - USD ($) $ in Thousands |
2 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended |
---|---|---|---|---|
Sep. 01, 2016 |
Sep. 30, 2015 |
Sep. 01, 2016 |
Sep. 30, 2015 |
|
Catalyst Services | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Loss) income before provision for income taxes | $ (1,218) | $ 1,089 | $ 290 | $ 2,489 |
INVENTORIES AND SUPPLIES (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Oil and oil products | $ 57,403 | $ 33,603 |
Supplies and drums | 84,133 | 78,132 |
Solvent and solutions | 8,502 | 8,868 |
Modular camp accommodations | 15,492 | 15,126 |
Other | 11,758 | 13,792 |
Total inventories and supplies | $ 177,288 | $ 149,521 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Expected Future Amortization) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2016 (three months) | $ 9,533 | |
2017 | 35,325 | |
2018 | 32,345 | |
2019 | 29,612 | |
2020 | 27,316 | |
Thereafter | 250,351 | |
Net | $ 384,482 | $ 384,492 |
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Payables and Accruals [Abstract] | ||
Insurance | $ 59,254 | $ 55,899 |
Interest | 21,859 | 20,500 |
Accrued compensation and benefits | 46,921 | 35,646 |
Income, real estate, sales and other taxes | 60,020 | 37,095 |
Other | 38,026 | 44,520 |
Total accrued expenses | $ 226,080 | $ 193,660 |
(LOSS) EARNINGS PER SHARE (Computation of Basic and Diluted Earnings Per Share)(Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Numerator for basic and diluted (loss) earnings per share: | ||||
Net (loss) income | $ (10,255) | $ 40,228 | $ (27,160) | $ 43,534 |
Denominator: | ||||
Basic shares outstanding (in shares) | 57,487 | 58,161 | 57,575 | 58,799 |
Dilutive effect of equity-based compensation awards (in shares) | 0 | 107 | 0 | 99 |
Dilutive shares outstanding (in shares) | 57,487 | 58,268 | 57,575 | 58,898 |
Basic earnings (loss) per share (in USD per share) | $ (0.18) | $ 0.69 | $ (0.47) | $ 0.74 |
Diluted earnings (loss) per share (in USD per share) | $ (0.18) | $ 0.69 | $ (0.47) | $ 0.74 |
(LOSS) EARNINGS PER SHARE (Narrative) (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Performance stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of earning per share (in shares) | 274,257 | 274,257 | ||
Restricted Stock Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of earning per share (in shares) | 10,704 | 42,642 | ||
Stock Options, Restricted Stock Awards, and Performance Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from computation of earning per share (in shares) | 835,482 | 835,482 |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Amount Reclassified Out of Accumulated Other Comprehensive Loss) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Equity [Abstract] | ||||
Reclassifications out of accumulated other comprehensive income | $ 0 | $ 0 | $ 0 | $ 0 |
STOCK-BASED COMPENSATION (Restricted Stock) (Details) - Restricted stock awards |
9 Months Ended |
---|---|
Sep. 30, 2016
$ / shares
shares
| |
Number of Shares | |
Beginning balance (in shares) | shares | 362,618 |
Granted (in shares) | shares | 335,992 |
Vested (in shares) | shares | (168,565) |
Forfeited (in shares) | shares | (46,298) |
Ending balance (in shares) | shares | 483,747 |
Weighted Average Grant-Date Fair Value | |
Beginning of period (in USD per share) | $ / shares | $ 55.79 |
Granted (in USD per share) | $ / shares | 50.87 |
Vested (in USD per share) | $ / shares | 54.06 |
Forfeited (in USD per share) | $ / shares | 53.04 |
End of period (in USD per share) | $ / shares | $ 53.23 |
STOCK-BASED COMPENSATION (Performance Stock Awards (Details) - Performance stock awards |
9 Months Ended |
---|---|
Sep. 30, 2016
$ / shares
shares
| |
Number of Shares | |
Beginning balance (in shares) | shares | 187,274 |
Granted (in shares) | shares | 207,624 |
Vested (in shares) | shares | (8,420) |
Forfeited (in shares) | shares | (33,469) |
Ending balance (in shares) | shares | 353,009 |
Weighted Average Grant-Date Fair Value | |
Beginning of period (in USD per share) | $ / shares | $ 57.13 |
Granted (in USD per share) | $ / shares | 54.21 |
Vested (in USD per share) | $ / shares | 61.90 |
Forfeited (in USD per share) | $ / shares | 55.96 |
End of period (in USD per share) | $ / shares | $ 55.39 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 47.80% | 46.20% | 80.30% | 44.40% | |
Unrecognized tax benefits | $ 1.8 | $ 1.8 | $ 2.1 | ||
Interest on unrecognized tax benefits | $ 0.3 | $ 0.3 | $ 0.4 |
SEGMENT REPORTING (Narrative) (Details) |
9 Months Ended |
---|---|
Sep. 30, 2016
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 6 |
SEGMENT REPORTING (Total Assets by Geographical Area) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 3,712,613 | $ 3,431,428 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 2,944,936 | 2,575,746 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 767,677 | 851,949 |
Other foreign | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 0 | $ 3,733 |
GUARANTOR AND NON-GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION (Narrative) (Details) - USD ($) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Mar. 14, 2016 |
Dec. 07, 2012 |
|
Guarantor and Non-Guarantor Subsidiaries Financial Information [Abstract] | |||
Subsidiary or equity method investee, cumulative percentage ownership after all transactions | 100.00% | ||
Senior unsecured notes, at 5.125%, due June 1, 2021 (2021 Notes) | Unsecured debt | |||
Debt Instrument [Line Items] | |||
Issuance of debt | $ 250,000,000.0 | $ 250,000,000.0 | $ 600,000,000.0 |
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