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 its business, makes operating decisions and assesses performance.

The Company's operations are managed in six operating segments: Technical Services, Industrial Services, Field Services, Safety-Kleen, Oil and Gas Field Services and Lodging Services. For purposes of segment disclosure the Industrial Services and Field Services operating segments have been aggregated into a single reportable segment based upon their similar

(18) SEGMENT REPORTING (Continued)

economic and other characteristics, and the Oil and Gas Field Services and Lodging Services operating segments have been combined as they do not meet the quantitative thresholds for separate presentation.

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 operating segments described above are recorded as “Corporate Items.” Corporate Items revenues consist of two different operations for which the revenues are insignificant. Corporate Items cost of revenues represents certain central services that are not allocated to the Company's operating 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 operating segments.

The following table reconciles third-party revenues to direct revenues for the years ended December 31, 2017, 2016 and 2015 (in thousands):



	For the Year Ended December 31, 2017
	Technical Services		Industrial and Field Services			Safety-Kleen			Oil, Gas and Lodging Services		Corporate Items			Totals
Third-party revenues	$	980,232	$	631,216		$	1,213,703		$	117,252	$	2,575		$	2,944,978
Intersegment revenues, net	161,533		(37,694		)	(125,822		)	1,983		—			—
Corporate Items, net	2,384		200			5			368		(2,957		)	—
Direct revenues	$	1,144,149	$	593,722		$	1,087,886		$	119,603	$	(382	)	$	2,944,978



	For the Year Ended December 31, 2016
	Technical Services		Industrial and Field Services			Safety-Kleen			Oil, Gas and Lodging Services		Corporate Items			Totals
Third-party revenues	$	906,495	$	618,245		$	1,110,727		$	116,692	$	3,067		$	2,755,226
Intersegment revenues, net	147,866		(35,724		)	(115,013		)	2,871		—			—
Corporate Items, net	2,374		(306		)	369			320		(2,757		)	—
Direct revenues	$	1,056,735	$	582,215		$	996,083		$	119,883	$	310		$	2,755,226



	For the Year Ended December 31, 2015
	Technical Services		Industrial and Field Services			Safety-Kleen			Oil, Gas and Lodging Services		Corporate Items			Totals
Third-party revenues	$	991,410	$	1,023,638		$	1,060,926		$	198,705	$	458		$	3,275,137
Intersegment revenues, net	144,084		(32,903		)	(119,232		)	8,051		—			—
Corporate Items, net	3,586		(782		)	(5		)	383		(3,182		)	—
Direct revenues	$	1,139,080	$	989,953		$	941,689		$	207,139	$	(2,724	)	$	3,275,137

The primary financial measure by which the Company evaluates the performance of its segments is Adjusted EBITDA which consists of net income (loss) plus accretion of environmental liabilities, depreciation and amortization, net interest expense, loss on early extinguishment of debt, (benefit) provision for income taxes, other gains or non-cash charges (including gain on sale of businesses and goodwill impairment charges) not deemed representative of fundamental segment results and excludes other expense (income), net. Transactions between the segments are accounted for at the Company’s best estimate based on similar transactions with outside customers.

(18) SEGMENT REPORTING (Continued)

The following table presents Adjusted EBITDA information used by management by reported segment (in thousands):



	For the Year Ended December 31,
	2017			2016			2015
Adjusted EBITDA:
Technical Services	$	276,592		$	271,176		$	291,737
Industrial and Field Services	43,010			51,191			161,447
Safety-Kleen	249,811			219,546			172,262
Oil, Gas and Lodging Services	1,708			(3,292		)	11,704
Corporate Items	(145,464		)	(138,267		)	(132,983		)
Total	425,657			400,354			504,167
Reconciliation to Consolidated Statements of Operations:
Accretion of environmental liabilities	9,460			10,177			10,402
Depreciation and amortization	288,422			287,002			274,194
Goodwill impairment charges	—			34,013			31,992
Income from operations	127,775			69,162			187,579
Other expense (income), net	6,119			(6,195		)	1,380
Loss on early extinguishment of debt	7,891			—			—
Gain on sale of businesses	(30,732		)	(16,884		)	—
Interest expense, net of interest income	85,808			83,525			76,553
Income from operations before (benefit) provision for income taxes	$	58,689		$	8,716		$	109,646

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

For the year ended December 31, 2017, the Company generated $2,392.0 million or 81.2% of revenues in the United States and Puerto Rico, $552.1 million or 18.7% of revenues in Canada, and less than 0.1% of revenues in other international locations. For the year ended December 31, 2016, the Company generated $2,213.4 million or 80.3% of revenues in the United States and Puerto Rico, $538.0 million or 19.5% of revenues in Canada, and less than 0.1% of revenues in other international locations. For the year ended December 31, 2015, the Company generated $2,576.2 million or 78.7% of revenues in the United States and Puerto Rico, $695.0 million or 21.2% of revenues in Canada, and less than 0.1% of revenues in other international locations.

As of December 31, 2017, the Company had property, plant and equipment, net of depreciation and amortization of $1,587.4 million, and permits and other intangible assets of $469.1 million. Of these totals, $411.9 million or 26.0% of property, plant and equipment and $60.5 million or 12.9% of permits and other intangible assets were in Canada, with the balance being in the United States and Puerto Rico (except for insignificant assets in other foreign countries). As of December 31, 2016, the Company had property, plant and equipment, net of depreciation and amortization of $1,611.8 million, and permits and other intangible assets of $498.7 million. Of these totals, $400.3 million or 24.8% of property, plant and equipment and $63.1 million or 12.7% of permits and other intangible assets were in Canada, with the balance being in the United States and Puerto Rico (except for insignificant assets in other foreign countries).

(18) SEGMENT REPORTING (Continued)

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



	December 31, 2017		December 31, 2016
Property, plant and equipment, net
Technical Services	$	504,754	$	521,134
Industrial and Field Services	254,091		245,143
Safety-Kleen	582,162		584,647
Oil, Gas and Lodging Services	168,294		182,038
Corporate Items	78,064		78,865
Total property, plant and equipment, net	$	1,587,365	$	1,611,827

Goodwill and Permits and other intangibles, net
Technical Services
Goodwill	$	60,133	$	61,116
Permits and other intangibles, net	73,775		78,625
Total Technical Services	133,908		139,741

Industrial and Field Services
Goodwill	112,253		107,968
Permits and other intangibles, net	17,049		17,817
Total Industrial and Field Services	129,302		125,785

Safety-Kleen
Goodwill	306,137		296,070
Permits and other intangibles, net	371,609		391,390
Total Safety-Kleen	677,746		687,460

Oil, Gas and Lodging Services
Goodwill	—		—
Permits and other intangibles, net	6,695		10,889
Total Oil, Gas and Lodging Services	6,695		10,889

Total	$	947,651	$	963,875

(18) SEGMENT REPORTING (Continued)

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



	December 31, 2017		December 31, 2016		December 31, 2015
Technical Services	$	847,994	$	862,957	$	800,060
Industrial and Field Services	464,142		446,826		461,180
Safety-Kleen	1,471,291		1,474,755		1,297,971
Oil, Gas and Lodging Services	229,105		253,242		333,245
Corporate Items	694,038		644,140		538,972
Total	$	3,706,570	$	3,681,920	$	3,431,428

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



	December 31, 2017		December 31, 2016		December 31, 2015
United States	$	2,985,394	$	2,960,337	$	2,575,746
Canada	721,176		721,583		851,949
Other foreign	—		—		3,733
Total	$	3,706,570	$	3,681,920	$	3,431,428