SEGMENT REPORTING

Segment reporting is prepared on the same basis that the Company's chief executive officer, who is the Company's chief operating decision maker, manages the business, makes operating decisions and assesses performance. The Company's operations are managed in two operating segments: Environmental Services and Safety-Kleen.

Third-party revenue is revenue billed to outside customers by a particular segment. Direct revenue is revenue allocated to the segment providing the product or service. Intersegment revenues represent the sharing of third-party revenues among the segments based on products and services provided by each segment as if the products and services were sold directly to the third-party. The intersegment revenues are shown net. The operations not managed through the Company’s operating segments described above are recorded as “Corporate Items.”

The following table reconciles third-party revenues to direct revenues for the three months ended March 31, 2019 and March 31, 2018 (in thousands):



	For the Three Months Ended March 31, 2019											For the Three Months Ended March 31, 2018
	Third-party revenues		Intersegment revenues, net			Corporate Items, net			Direct revenues			Third-party revenues		Intersegment revenues, net			Corporate Items, net			Direct revenues
Environmental Services	$	473,698	$	34,075		$	1,249		$	509,022		$	439,688	$	31,965		$	794		$	472,447
Safety-Kleen	306,547		(34,075		)	5			272,477			309,918		(31,965		)	11			277,964
Corporate Items	594		—			(1,254		)	(660		)	172		—			(805		)	(633		)
Total	$	780,839	$	—		$	—		$	780,839		$	749,778	$	—		$	—		$	749,778

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, interest expense, net of interest income, provision for income taxes and other gains or non-cash charges not deemed representative of fundamental segment results and excludes other (income) expense, net. Transactions between the segments are accounted for at the Company’s best estimate based on similar transactions with outside customers.

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



	For the Three Months Ended
	March 31,
	2019			2018
Adjusted EBITDA:
Environmental Services	$	89,510		$	61,417
Safety-Kleen	54,793			61,884
Corporate Items	(42,640		)	(35,036		)
Total	101,663			88,265
Reconciliation to Consolidated Statements of Operations:
Accretion of environmental liabilities	2,574			2,430
Depreciation and amortization	75,355			74,844
Income from operations	23,734			10,991
Other (income) expense, net	(2,983		)	299
Interest expense, net of interest income	19,764			20,270
Income (loss) before provision for income taxes	$	6,953		$	(9,578	)

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



	March 31, 2019		December 31, 2018
Property, plant and equipment, net
Environmental Services	$	953,960	$	951,867
Safety-Kleen	561,041		553,220
Corporate Items	73,612		56,891
Total property, plant and equipment, net	$	1,588,613	$	1,561,978

Goodwill and Permits and other intangibles, net
Environmental Services
Goodwill	$	204,860	$	207,019
Permits and other intangibles, net	95,040		93,313
Total Environmental Services	299,900		300,332

Safety-Kleen
Goodwill	$	313,050	$	307,170
Permits and other intangibles, net	343,918		348,562
Total Safety-Kleen	656,968		655,732

Total	$	956,868	$	956,064

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



	March 31, 2019		December 31, 2018
Environmental Services	$	1,724,208	$	1,640,706
Safety-Kleen	1,518,723		1,431,381
Corporate Items	639,123		666,234
Total	$	3,882,054	$	3,738,321

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



	March 31, 2019		December 31, 2018
United States	$	3,212,979	$	3,090,311
Canada	669,075		648,010
Total	$	3,882,054	$	3,738,321