SEGMENT REPORTING

12 Months Ended

Dec. 31, 2019

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 is managed and reports as two operating segments; (i) the Environmental Services segment which consists of the Company’s historical Technical Services, Industrial Services, Field Services and Oil, Gas and Lodging businesses, and (ii) the Safety-Kleen segment.

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

The following tables reconcile third-party revenues to direct revenues for the years ended December 31, 2019, 2018 and 2017 (in thousands):



	For the year ended December 31, 2019
	Environmental Services		Safety-Kleen			Corporate Items			Totals
Third-party revenues	$	2,092,363	$	1,318,691		$	1,136		$	3,412,190
Intersegment revenues, net	140,577		(140,577		)	—			—
Corporate Items, net	4,128		15			(4,143		)	—
Direct revenues	$	2,237,068	$	1,178,129		$	(3,007	)	$	3,412,190



	For the year ended December 31, 2018
	Environmental Services		Safety-Kleen			Corporate Items			Totals
Third-party revenues	$	2,003,843	$	1,295,355		$	1,105		$	3,300,303
Intersegment revenues, net	134,104		(134,104		)	—			—
Corporate Items, net	3,247		31			(3,278		)	—
Direct revenues	$	2,141,194	$	1,161,282		$	(2,173	)	$	3,300,303



	For the year ended December 31, 2017
	Environmental Services		Safety-Kleen			Corporate Items			Totals
Third-party revenues	$	1,728,700	$	1,213,703		$	2,575		$	2,944,978
Intersegment revenues, net	125,822		(125,822		)	—			—
Corporate Items, net	2,952		5			(2,957		)	—
Direct revenues	$	1,857,474	$	1,087,886		$	(382	)	$	2,944,978

The primary financial measure by which the Company evaluates the performance of its segments is Adjusted EBITDA, which consists of net income plus accretion of environmental liabilities, depreciation and amortization, net interest expense, loss on early extinguishment of debt and provision (benefit) for income taxes and excludes other gains, losses and non-cash charges not deemed representative of fundamental segment results and 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 years ended December 31,
	2019			2018			2017
Adjusted EBITDA:
Environmental Services	$	446,284		$	380,856		$	321,310
Safety-Kleen	282,378			282,029			249,811
Corporate Items	(188,345		)	(171,880		)	(145,464		)
Total	540,317			491,005			425,657
Reconciliation to Consolidated Statements of Operations:
Accretion of environmental liabilities	10,136			9,806			9,460
Depreciation and amortization	300,725			298,625			288,422
Income from operations	229,456			182,574			127,775
Other (income) expense, net	(2,897		)	4,510			6,119
Loss on early extinguishment of debt	6,131			2,488			7,891
Gain on sale of businesses	(687		)	—			(30,732		)
Interest expense, net of interest income	78,670			81,094			85,808
Income from operations before provision (benefit) for income taxes	$	148,239		$	94,482		$	58,689

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



	December 31, 2019		December 31, 2018
Property, plant and equipment, net
Environmental Services	$	939,352	$	951,867
Safety-Kleen	555,310		553,220
Corporate Items	93,489		56,891
Total property, plant and equipment, net	$	1,588,151	$	1,561,978

Goodwill and Permits and other intangibles, net
Environmental Services
Goodwill	$	212,531	$	207,019
Permits and other intangibles, net	89,722		93,313
Total Environmental Services	302,253		300,332

Safety-Kleen
Goodwill	$	312,482	$	307,170
Permits and other intangibles, net	329,344		348,562
Total Safety-Kleen	641,826		655,732

Total	$	944,079	$	956,064

Geographic Information

As of December 31, 2019 and 2018, the Company had property, plant and equipment, net of depreciation and amortization and permits and other intangible assets, net of amortization in the following geographic locations (in thousands):



	December 31, 2019				December 31, 2018
	Total		% of Total		Total		% of Total
Property, plant and equipment, net
United States	$	1,273,205	80.2	%	$	1,233,949	79.0	%
Canada and other foreign	314,946		19.8		328,029		21.0
Total property, plant and equipment, net	$	1,588,151	100.0	%	$	1,561,978	100.0	%

Permits and other intangibles, net
United States	$	372,609	88.9	%	$	393,045	88.9	%
Canada and other foreign	46,457		11.1		48,830		11.1
Total permits and other intangibles, net	$	419,066	100.0	%	$	441,875	100.0	%

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



	December 31, 2019		December 31, 2018
United States	$	3,413,254	$	3,090,311
Canada and other foreign	695,650		648,010
Total	$	4,108,904	$	3,738,321