XML 42 R28.htm IDEA: XBRL DOCUMENT v3.20.4
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2020
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. The Company is managed and reports as two operating segments; (i) the Environmental Services segment 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, 2020, 2019 and 2018 (in thousands):
 For the year ended December 31, 2020
 Environmental
Services		Safety-KleenCorporate
Items		Totals
Third-party revenues$2,004,081 $1,139,726 $290 $3,144,097 
Intersegment revenues, net129,666 (129,666)— — 
Corporate Items, net3,559 142 (3,701)— 
Direct revenues$2,137,306 $1,010,202 $(3,411)$3,144,097 
 For the year ended December 31, 2019
 Environmental
Services		Safety-KleenCorporate
Items		Totals
Third-party revenues$2,092,363 $1,318,691 $1,136 $3,412,190 
Intersegment revenues, net140,577 (140,577)— — 
Corporate Items, net4,128 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-KleenCorporate
Items		Totals
Third-party revenues$2,003,843 $1,295,355 $1,105 $3,300,303 
Intersegment revenues, net134,104 (134,104)— — 
Corporate Items, net3,247 31 (3,278)— 
Direct revenues$2,141,194 $1,161,282 $(2,173)$3,300,303 
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 for income taxes and excludes other gains, losses and non-cash charges not deemed representative of fundamental segment results and other expense (income), 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,
 202020192018
Adjusted EBITDA:   
Environmental Services$519,960 $446,284 $380,856 
Safety-Kleen229,172 282,378 282,029 
Corporate Items(193,830)(188,345)(171,880)
Total555,302 540,317 491,005 
Reconciliation to Consolidated Statements of Operations:   
Accretion of environmental liabilities11,051 10,136 9,806 
Depreciation and amortization292,915 300,725 298,625 
Income from operations251,336 229,456 182,574 
Other expense (income), net290 (2,897)4,510 
Loss on early extinguishment of debt— 6,131 2,488 
Loss (gain) on sale of businesses3,376 (687)— 
Interest expense, net of interest income73,120 78,670 81,094 
Income from operations before provision for income taxes$174,550 $148,239 $94,482 

The following table presents assets by reported segment and in the aggregate (in thousands):
December 31, 2020December 31, 2019
Property, plant and equipment, net  
Environmental Services$879,176 $939,352 
Safety-Kleen555,894 555,310 
Corporate Items90,228 93,489 
Total property, plant and equipment, net$1,525,298 $1,588,151 
Goodwill and Permits and other intangibles, net  
Environmental Services  
Goodwill$212,386 $212,531 
Permits and other intangibles, net78,928 89,722 
Total Environmental Services291,314 302,253 
Safety-Kleen
Goodwill$314,637 $312,482 
Permits and other intangibles, net307,692 329,344 
Total Safety-Kleen622,329 641,826 
Total$913,643 $944,079 
Geographic Information
As of December 31, 2020 and 2019, 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, 2020December 31, 2019
Total% of TotalTotal% of Total
Property, plant and equipment, net  
United States$1,246,758 81.7 %$1,273,205 80.2 %
Canada and other foreign278,540 18.3 314,946 19.8 
Total property, plant and equipment, net$1,525,298 100.0 %$1,588,151 100.0 %
Permits and other intangibles, net  
United States$342,787 88.7 %$372,609 88.9 %
Canada and other foreign43,833 11.3 46,457 11.1 
Total permits and other intangibles, net$386,620 100.0 %$419,066 100.0 %
The following table presents the total assets by geographical area (in thousands):
December 31, 2020December 31, 2019
United States$3,447,811 $3,413,254 
Canada and other foreign683,709 695,650 
Total$4,131,520 $4,108,904