QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||||||
FOR THE QUARTERLY PERIOD ENDED | ||||||||||||||
OR | ||||||||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) | |||||||||||||||||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging growth company |
Page No. | |||||
March 31, 2021 | December 31, 2020 | ||||||||||
ASSETS | (unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term marketable securities | |||||||||||
Accounts receivable, net of allowances aggregating $ | |||||||||||
Unbilled accounts receivable | |||||||||||
Inventories and supplies | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Other assets: | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Permits and other intangibles, net | |||||||||||
Other | |||||||||||
Total other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Deferred revenue | |||||||||||
Accrued expenses | |||||||||||
Current portion of closure, post-closure and remedial liabilities | |||||||||||
Current portion of operating lease liabilities | |||||||||||
Total current liabilities | |||||||||||
Other liabilities: | |||||||||||
Closure and post-closure liabilities, less current portion of $ | |||||||||||
Remedial liabilities, less current portion of $ | |||||||||||
Long-term debt, less current portion | |||||||||||
Operating lease liabilities, less current portion | |||||||||||
Deferred tax liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total other liabilities | |||||||||||
Commitments and contingent liabilities (See Note 16) | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated earnings | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Revenues: | ||||||||||||||
Service revenues | $ | $ | ||||||||||||
Product revenues | ||||||||||||||
Total revenues | ||||||||||||||
Cost of revenues: (exclusive of items shown separately below) | ||||||||||||||
Service revenues | ||||||||||||||
Product revenues | ||||||||||||||
Total cost of revenues | ||||||||||||||
Selling, general and administrative expenses | ||||||||||||||
Accretion of environmental liabilities | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Income from operations | ||||||||||||||
Other expense, net | ( | ( | ||||||||||||
Loss on sale of businesses | ( | |||||||||||||
Interest expense, net of interest income of $ | ( | ( | ||||||||||||
Income before provision for income taxes | ||||||||||||||
Provision for income taxes | ||||||||||||||
Net income | $ | $ | ||||||||||||
Earnings per share: | ||||||||||||||
Basic | $ | $ | ||||||||||||
Diluted | $ | $ | ||||||||||||
Shares used to compute earnings per share - Basic | ||||||||||||||
Shares used to compute earnings per share - Diluted |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Net income | $ | $ | ||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Unrealized losses on available-for-sale securities | ( | ( | ||||||||||||
Unrealized gain (loss) on interest rate hedge | ( | |||||||||||||
Reclassification adjustment for losses on interest rate hedge included in net income | ||||||||||||||
Foreign currency translation adjustments | ( | |||||||||||||
Other comprehensive income (loss), net of tax | ( | |||||||||||||
Comprehensive income (loss) | $ | $ | ( |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Allowance for doubtful accounts | |||||||||||
Amortization of deferred financing costs and debt discount | |||||||||||
Accretion of environmental liabilities | |||||||||||
Changes in environmental liability estimates | |||||||||||
Deferred income taxes | ( | ||||||||||
Other expense, net | |||||||||||
Stock-based compensation | |||||||||||
Loss on sale of businesses | |||||||||||
Environmental expenditures | ( | ( | |||||||||
Changes in assets and liabilities, net of acquisitions: | |||||||||||
Accounts receivable and unbilled accounts receivable | ( | ( | |||||||||
Inventories and supplies | ( | ( | |||||||||
Other current and non-current assets | ( | ||||||||||
Accounts payable | ( | ||||||||||
Other current and long-term liabilities | ( | ( | |||||||||
Net cash from operating activities | |||||||||||
Cash flows used in investing activities: | |||||||||||
Additions to property, plant and equipment | ( | ( | |||||||||
Proceeds from sale and disposal of fixed assets | |||||||||||
Acquisitions, net of cash acquired | ( | ||||||||||
Proceeds from sale of businesses, net of transactional costs | |||||||||||
Additions to intangible assets including costs to obtain or renew permits | ( | ( | |||||||||
Proceeds from sale of available-for-sale securities | |||||||||||
Purchases of available-for-sale securities | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows (used in) from financing activities: | |||||||||||
Change in uncashed checks | ( | ( | |||||||||
Tax payments related to withholdings on vested restricted stock | ( | ( | |||||||||
Repurchases of common stock | ( | ( | |||||||||
Deferred financing costs paid | ( | ||||||||||
Payments on finance leases | ( | ( | |||||||||
Principal payments on debt | ( | ( | |||||||||
Borrowings from revolving credit facility | |||||||||||
Net cash (used in) from financing activities | ( | ||||||||||
Effect of exchange rate change on cash | ( | ||||||||||
(Decrease) increase in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental information: | |||||||||||
Cash payments for interest and income taxes: | |||||||||||
Interest paid | $ | $ | |||||||||
Income taxes paid, net of refunds | |||||||||||
Non-cash investing activities: | |||||||||||
Property, plant and equipment accrued | |||||||||||
ROU assets obtained in exchange for operating lease liabilities | |||||||||||
ROU assets obtained in exchange for finance lease liabilities | ( | ||||||||||
Common Stock | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||
Number of Shares | $ Par Value | Additional Paid-in Capital | Accumulated Earnings | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Balance at January 1, 2021 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock for restricted share vesting, net of employee tax withholdings | ( | — | — | ( | |||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | ( | $ | $ |
Common Stock | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||
Number of Shares | $ Par Value | Additional Paid-in Capital | Accumulated Earnings | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock for restricted share vesting, net of employee tax withholdings | ( | — | — | ( | |||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | ( | $ | $ |
For the Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||
Environmental Services | Safety-Kleen Sustainability Solutions | Corporate | Total | |||||||||||||||||||||||
Primary Geographical Markets | ||||||||||||||||||||||||||
United States | $ | $ | $ | $ | ||||||||||||||||||||||
Canada | ||||||||||||||||||||||||||
Total third-party revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Sources of Revenue | ||||||||||||||||||||||||||
Technical Services | $ | $ | $ | $ | ||||||||||||||||||||||
Field and Emergency Response Services | ||||||||||||||||||||||||||
Industrial Services and Other | ||||||||||||||||||||||||||
Safety-Kleen Environmental Services | ||||||||||||||||||||||||||
Safety-Kleen Oil | ||||||||||||||||||||||||||
Total third-party revenues | $ | $ | $ | $ |
For the Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||
Environmental Services | Safety-Kleen Sustainability Solutions | Corporate | Total | |||||||||||||||||||||||
Primary Geographical Markets | ||||||||||||||||||||||||||
United States | $ | $ | $ | ( | $ | |||||||||||||||||||||
Canada | ||||||||||||||||||||||||||
Total third-party revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Sources of Revenue | ||||||||||||||||||||||||||
Technical Services | $ | $ | $ | $ | ||||||||||||||||||||||
Field and Emergency Response Services | ||||||||||||||||||||||||||
Industrial Services and Other | ||||||||||||||||||||||||||
Safety-Kleen Environmental Services | ||||||||||||||||||||||||||
Safety-Kleen Oil | ||||||||||||||||||||||||||
Total third-party revenues | $ | $ | $ | $ |
(in thousands) | March 31, 2021 | December 31, 2020 | ||||||||||||
Receivables | $ | $ | ||||||||||||
Contract assets (unbilled receivables) | ||||||||||||||
Contract liabilities (deferred revenue) |
March 31, 2021 | December 31, 2020 | ||||||||||
Oil and oil related products | $ | $ | |||||||||
Supplies | |||||||||||
Solvent and solutions | |||||||||||
Other | |||||||||||
Total inventories and supplies | $ | $ |
March 31, 2021 | December 31, 2020 | ||||||||||
Land | $ | $ | |||||||||
Asset retirement costs (non-landfill) | |||||||||||
Landfill assets | |||||||||||
Buildings and improvements (1) | |||||||||||
Camp equipment | |||||||||||
Vehicles (2) | |||||||||||
Equipment (3) | |||||||||||
Furniture and fixtures | |||||||||||
Construction in progress | |||||||||||
Less - accumulated depreciation and amortization | |||||||||||
Total property, plant and equipment, net | $ | $ |
Environmental Services | Safety-Kleen Sustainability Solutions | Totals | |||||||||||||||
Balance at January 1, 2021 | $ | $ | $ | ||||||||||||||
Increase from current period acquisition | |||||||||||||||||
Foreign currency translation | |||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Cost | Accumulated Amortization | Net | Cost | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Permits | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Customer and supplier relationships | |||||||||||||||||||||||||||||||||||
Other intangible assets | |||||||||||||||||||||||||||||||||||
Total amortizable permits and other intangible assets | |||||||||||||||||||||||||||||||||||
Trademarks and trade names | — | — | |||||||||||||||||||||||||||||||||
Total permits and other intangible assets | $ | $ | $ | $ | $ | $ |
Years Ending December 31, | Expected Amortization | ||||
2021 (nine months) | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
$ |
March 31, 2021 | December 31, 2020 | ||||||||||
Accrued insurance | $ | $ | |||||||||
Accrued interest | |||||||||||
Accrued compensation and benefits | |||||||||||
Accrued income, real estate, sales and other taxes | |||||||||||
Interest rate swap liability | |||||||||||
Accrued other | |||||||||||
$ | $ |
Landfill Retirement Liability | Non-Landfill Retirement Liability | Total | |||||||||||||||
Balance at January 1, 2021 | $ | $ | $ | ||||||||||||||
Liabilities assumed in acquisitions | |||||||||||||||||
New asset retirement obligations | |||||||||||||||||
Accretion | |||||||||||||||||
Changes in estimates recorded to consolidated statement of operations | |||||||||||||||||
Changes in estimates recorded to consolidated balance sheet | |||||||||||||||||
Expenditures | ( | ( | ( | ||||||||||||||
Currency translation and other | |||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ |
Remedial Liabilities for Landfill Sites | Remedial Liabilities for Inactive Sites | Remedial Liabilities (Including Superfund) for Non-Landfill Operations | Total | ||||||||||||||||||||
Balance at January 1, 2021 | $ | $ | $ | $ | |||||||||||||||||||
Accretion | |||||||||||||||||||||||
Changes in estimates recorded to consolidated statement of operations | |||||||||||||||||||||||
Expenditures | ( | ( | ( | ( | |||||||||||||||||||
Currency translation and other | ( | ||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ |
Current Debt: | March 31, 2021 | December 31, 2020 | |||||||||
Secured senior term loans ("Term Loans") | $ | $ | |||||||||
Long-Term Debt: | |||||||||||
Secured senior Term Loans due June 30, 2024 | $ | $ | |||||||||
Unsecured senior notes, at | |||||||||||
Unsecured senior notes, at | |||||||||||
Long-term debt, at par | $ | $ | |||||||||
Unamortized debt issuance costs and premium, net | ( | ( | |||||||||
Long-term debt, at carrying value | $ | $ |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Numerator for basic and diluted earnings per share: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Denominator: | ||||||||||||||
Basic shares outstanding | ||||||||||||||
Dilutive effect of outstanding stock awards | ||||||||||||||
Dilutive shares outstanding | ||||||||||||||
Basic earnings per share: | $ | $ | ||||||||||||
Diluted earnings per share: | $ | $ |
Foreign Currency Translation | Unrealized Gains (Losses) on Available-For-Sale Securities | Unrealized (Loss) Gain on Interest Rate Hedge | Unrealized Loss on Unfunded Pension Liability | Total | |||||||||||||||||||||||||
Balance at January 1, 2021 | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ||||||||||||||||||||||||||||
Amounts reclassified out of accumulated other comprehensive loss | |||||||||||||||||||||||||||||
Tax benefit | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | ( | $ | $ | ( | $ | ( | $ | ( |
Other Comprehensive Income (Loss) Components | For the Three Months Ended March 31, 2021 | Location | ||||||||||||
Unrealized loss on interest rate hedge | $ | ( | Interest expense, net of interest income | |||||||||||
Restricted Stock | Number of Shares | Weighted Average Grant-Date Fair Value | |||||||||
Balance at January 1, 2021 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Balance at March 31, 2021 |
Performance Stock | Number of Shares | Weighted Average Grant-Date Fair Value | |||||||||
Balance at January 1, 2021 | $ | ||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Balance at March 31, 2021 |
For the Three Months Ended March 31, 2021 | For the Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||
Third-party revenues | Intersegment revenues, net | Direct revenues | Third-party revenues | Intersegment revenues, net | Direct revenues | ||||||||||||||||||||||||||||||
Environmental Services | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Safety-Kleen Sustainability Solutions | ( | ( | |||||||||||||||||||||||||||||||||
Corporate Items | — | — | |||||||||||||||||||||||||||||||||
Total | $ | $ | — | $ | $ | $ | — | $ |
For the Three Months Ended | |||||||||||
March 31, | |||||||||||
2021 | 2020 | ||||||||||
Adjusted EBITDA: | |||||||||||
Environmental Services | $ | $ | |||||||||
Safety-Kleen Sustainability Solutions | |||||||||||
Corporate Items | ( | ( | |||||||||
Total | |||||||||||
Reconciliation to Consolidated Statements of Operations: | |||||||||||
Accretion of environmental liabilities | |||||||||||
Stock-based compensation | |||||||||||
Depreciation and amortization | |||||||||||
Income from operations | |||||||||||
Other expense, net | |||||||||||
Loss on sale of businesses | |||||||||||
Interest expense, net of interest income | |||||||||||
Income before provision for income taxes | $ | $ |
March 31, 2021 | December 31, 2020 | ||||||||||
Property, plant and equipment, net: | |||||||||||
Environmental Services | $ | $ | |||||||||
Safety-Kleen Sustainability Solutions | |||||||||||
Corporate Items | |||||||||||
Total property, plant and equipment, net | $ | $ | |||||||||
Goodwill and Permits and other intangibles, net: | |||||||||||
Environmental Services | |||||||||||
Goodwill | $ | $ | |||||||||
Permits and other intangibles, net | |||||||||||
Total Environmental Services | |||||||||||
Safety-Kleen Sustainability Solutions | |||||||||||
Goodwill | $ | $ | |||||||||
Permits and other intangibles, net | |||||||||||
Total Safety-Kleen Sustainability Solutions | |||||||||||
Total | $ | $ |
March 31, 2021 | December 31, 2020 | ||||||||||
United States | $ | $ | |||||||||
Canada and other foreign | |||||||||||
Total | $ | $ |
Three Months Ended | |||||||||||||||||||||||
March 31, 2021 | |||||||||||||||||||||||
Environmental Services | Safety-Kleen Sustainability Solutions | Corporate Items | Total | ||||||||||||||||||||
Cost of revenues | $ | 3,767 | $ | 469 | $ | 24 | $ | 4,260 | |||||||||||||||
Selling, general and administrative expenses | 747 | 326 | 80 | 1,153 | |||||||||||||||||||
Total | $ | 4,514 | $ | 795 | $ | 104 | $ | 5,413 |
Summary of Operations | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
March 31, 2021 | March 31, 2020 | $ Change | % Change | ||||||||||||||||||||
Direct Revenues(1): | |||||||||||||||||||||||
Environmental Services | $ | 654,602 | $ | 705,192 | $ | (50,590) | (7.2)% | ||||||||||||||||
Safety-Kleen Sustainability Solutions | 153,467 | 153,281 | 186 | 0.1 | |||||||||||||||||||
Corporate Items | 79 | 90 | (11) | N/M | |||||||||||||||||||
Total | 808,148 | 858,563 | (50,415) | (5.9) | |||||||||||||||||||
Cost of Revenues(2): | |||||||||||||||||||||||
Environmental Services | 451,255 | 491,121 | (39,866) | (8.1) | |||||||||||||||||||
Safety-Kleen Sustainability Solutions | 108,376 | 113,828 | (5,452) | (4.8) | |||||||||||||||||||
Corporate Items | 905 | 1,717 | (812) | N/M | |||||||||||||||||||
Total | 560,536 | 606,666 | (46,130) | (7.6) | |||||||||||||||||||
Selling, General & Administrative Expenses: | |||||||||||||||||||||||
Environmental Services | 63,093 | 68,213 | (5,120) | (7.5) | |||||||||||||||||||
Safety-Kleen Sustainability Solutions | 13,459 | 15,249 | (1,790) | (11.7) | |||||||||||||||||||
Corporate Items | 45,089 | 45,845 | (756) | (1.6) | |||||||||||||||||||
Total | 121,641 | 129,307 | (7,666) | (5.9) | |||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||
Environmental Services | 140,254 | 145,858 | (5,604) | (3.8) | |||||||||||||||||||
Safety-Kleen Sustainability Solutions | 31,632 | 24,204 | 7,428 | 30.7 | |||||||||||||||||||
Corporate Items | (42,435) | (44,181) | 1,746 | 4.0 | |||||||||||||||||||
Total | $ | 129,451 | $ | 125,881 | $ | 3,570 | 2.8% |
For the Three Months Ended | |||||||||||||||||||||||
March 31, | 2021 over 2020 | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Direct revenues | $ | 654,602 | $ | 705,192 | $ | (50,590) | (7.2) | % |
For the Three Months Ended | |||||||||||||||||||||||
March 31, | 2021 over 2020 | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Direct revenues | $ | 153,467 | $ | 153,281 | $ | 186 | 0.1 | % |
For the Three Months Ended | |||||||||||||||||||||||
March 31, | 2021 over 2020 | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Cost of revenues | $ | 451,255 | $ | 491,121 | $ | (39,866) | (8.1) | % | |||||||||||||||
As a % of Direct revenues | 68.9 | % | 69.6 | % | (0.7) | % |
For the Three Months Ended | |||||||||||||||||||||||
March 31, | 2021 over 2020 | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Cost of revenues | $ | 108,376 | $ | 113,828 | $ | (5,452) | (4.8) | % | |||||||||||||||
As a % of Direct revenues | 70.6 | % | 74.3 | % | (3.7) | % |
For the Three Months Ended | |||||||||||||||||||||||
March 31, | 2021 over 2020 | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | Change | % Change | |||||||||||||||||||
SG&A expenses | $ | 63,093 | $ | 68,213 | $ | (5,120) | (7.5) | % | |||||||||||||||
As a % of Direct revenues | 9.6 | % | 9.7 | % | (0.1) | % |
For the Three Months Ended | |||||||||||||||||||||||
March 31, | 2021 over 2020 | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | Change | % Change | |||||||||||||||||||
SG&A expenses | $ | 13,459 | $ | 15,249 | $ | (1,790) | (11.7) | % | |||||||||||||||
As a % of Direct revenues | 8.8 | % | 9.9 | % | (1.1) | % |
For the Three Months Ended | |||||||||||||||||||||||
March 31, | 2021 over 2020 | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | Change | % Change | |||||||||||||||||||
SG&A expenses | $ | 45,089 | $ | 45,845 | $ | (756) | (1.6) | % |
For the Three Months Ended | |||||||||||||||||||||||
March 31, | 2021 over 2020 | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||
Environmental Services | $ | 140,254 | $ | 145,858 | $ | (5,604) | (3.8) | % | |||||||||||||||
Safety-Kleen Sustainability Solutions | 31,632 | 24,204 | 7,428 | 30.7 | |||||||||||||||||||
Corporate Items | (42,435) | (44,181) | 1,746 | 4.0 | |||||||||||||||||||
Total | $ | 129,451 | $ | 125,881 | $ | 3,570 | 2.8 | % |
For the Three Months Ended | |||||||||||
March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net income | $ | 21,736 | $ | 11,572 | |||||||
Accretion of environmental liabilities | 2,953 | 2,561 | |||||||||
Stock-based compensation | 3,480 | 3,291 | |||||||||
Depreciation and amortization | 72,163 | 74,533 | |||||||||
Other expense, net | 1,228 | 2,365 | |||||||||
Loss on sale of businesses | — | 3,074 | |||||||||
Interest expense, net of interest income | 17,918 | 18,787 | |||||||||
Provision for income taxes | 9,973 | 9,698 | |||||||||
Adjusted EBITDA | $ | 129,451 | $ | 125,881 | |||||||
As a % of Direct revenues | 16.0 | % | 14.7 | % |
For the Three Months Ended | |||||||||||||||||||||||
March 31, | 2021 over 2020 | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Depreciation of fixed assets and amortization of landfills and finance leases | $ | 64,574 | $ | 65,366 | $ | (792) | (1.2) | % | |||||||||||||||
Permits and other intangibles amortization | 7,589 | 9,167 | (1,578) | (17.2) | % | ||||||||||||||||||
Total depreciation and amortization | $ | 72,163 | $ | 74,533 | $ | (2,370) | (3.2) | % |
For the Three Months Ended | |||||||||||||||||||||||
March 31, | 2021 over 2020 | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | Change | % Change | |||||||||||||||||||
Provision for income taxes | $ | 9,973 | $ | 9,698 | $ | 275 | 2.8 | % | |||||||||||||||
Effective tax rate | 31.5 | % | 45.6 | % | (14.1) | % |
Three Months Ended | |||||||||||
March 31, | |||||||||||
(in thousands) | 2021 | 2020 | |||||||||
Net cash from operating activities | $ | 103,000 | $ | 33,681 | |||||||
Net cash used in investing activities | (86,737) | (93,087) | |||||||||
Net cash (used in) from financing activities | (40,620) | 126,447 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net cash from operating activities | $ | 103,000 | $ | 33,681 | |||||||
Additions to property, plant and equipment | (41,913) | (82,767) | |||||||||
Purchase and capital improvements of corporate headquarters | — | 20,735 | |||||||||
Proceeds from sale and disposal of fixed assets | 1,204 | 2,150 | |||||||||
Adjusted free cash flow | $ | 62,291 | $ | (26,201) |
(in thousands, except percentages) | March 31, 2021 | December 31, 2020 | Change | % Change | |||||||||||||||||||
Closure and post-closure liabilities | $ | 91,105 | $ | 87,926 | $ | 3,179 | 3.6 | % | |||||||||||||||
Remedial liabilities | 114,248 | 114,813 | (565) | (0.5) | |||||||||||||||||||
Total environmental liabilities | $ | 205,353 | $ | 202,739 | $ | 2,614 | 1.3 | % |
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 (in thousands) (3) | |||||||||||||||||||
January 1, 2021 through January 31, 2021 | 1,907 | $ | 76.10 | — | $ | 209,852 | |||||||||||||||||
February 1, 2021 through February 28, 2021 | 11,642 | 79.38 | — | 209,852 | |||||||||||||||||||
March 1, 2021 through March 31, 2021 | 329,723 | 88.55 | 300,000 | 183,306 | |||||||||||||||||||
Total | 343,272 | 88.17 | 300,000 |
Item No. | Description | Location | ||||||||||||
31.1 | Filed herewith | |||||||||||||
31.2 | Filed herewith | |||||||||||||
32 | 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 March 31, 2021, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Unaudited Consolidated Statements of Operations, (iii) Unaudited Consolidated Statements of Comprehensive Income (Loss), (iv) Unaudited Consolidated Statements of Cash Flows, (v) Unaudited Consolidated Statements of Stockholders’ Equity and (vi) Notes to Unaudited Consolidated Financial Statements. | * | ||||||||||||
104 | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, formatted in iXBRL and contained in Exhibit 101. |
CLEAN HARBORS, INC. | |||||||||||
Registrant | |||||||||||
By: | /s/ ALAN S. MCKIM | ||||||||||
Alan S. McKim | |||||||||||
Chairman, President and Chief Executive Officer | |||||||||||
Date: | May 5, 2021 | ||||||||||
By: | /s/ MICHAEL L. BATTLES | ||||||||||
Michael L. Battles | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
Date: | May 5, 2021 |
/s/ Alan S. McKim | |||||
Alan S. McKim | |||||
Chairman, President 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, President and Chief Executive Officer | |||||||||||
Date: | May 5, 2021 | ||||||||||
By: | /s/ MICHAEL L. BATTLES | ||||||||||
Michael L. Battles | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
Date: | May 5, 2021 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Account receivable, allowances aggregating | $ 44,407 | $ 44,749 |
Closure and post-closure liabilities, current portion | 11,887 | 13,903 |
Remedial liabilities, current portion | $ 15,009 | $ 12,190 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 80,000,000 | 80,000,000 |
Common stock, issued shares (in shares) | 54,550,817 | 54,772,696 |
Common stock, outstanding shares (in shares) | 54,550,817 | 54,772,696 |
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Income Statement [Abstract] | ||
Interest income | $ 479 | $ 998 |
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 21,736 | $ 11,572 |
Other comprehensive income (loss), net of tax: | ||
Unrealized losses on available-for-sale securities | (74) | (64) |
Unrealized gain (loss) on interest rate hedge | 3,108 | (18,382) |
Reclassification adjustment for losses on interest rate hedge included in net income | 2,448 | 1,098 |
Foreign currency translation adjustments | 6,466 | (41,958) |
Other comprehensive income (loss), net of tax | 11,948 | (59,306) |
Comprehensive income (loss) | $ 33,684 | $ (47,734) |
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (PARENTHETICAL) - $ / shares |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Stockholders' Equity [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
BASIS OF PRESENTATION |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATIONThe 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 and are 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 conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
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, 2020. There have been no material changes in these policies or their application except for the changes described below. Changes in Operating Segments During the first quarter of 2021, the Company reorganized its Safety-Kleen business. The collection services for waste oil, used oil filters, antifreeze and related items and bulk blended oil sales operations were combined with the Safety-Kleen Oil business to form the Safety-Kleen Sustainability Solutions business. Under this structure, Safety-Kleen Sustainability Solutions will encompass both sides of the spread the Company manages in its re-refinery business, and the Company expects this change to drive additional growth in its sustainable lubricant products and related services. Concurrently with this change, the Company consolidated the Safety-Kleen branches' core offerings, including containerized waste, parts washer and vacuum services, into the legacy Clean Harbors Environmental Services sales and service operations. The Company expects this change to foster enhanced cross-selling opportunities within the environmental businesses and increase market presence with small quantity generators of hazardous waste. In restructuring the operations of the Company in this manner, the information that the chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed to conform to this new operating structure of the business and the Company reevaluated the identification of its operating segments. In accordance with ASC 280, Segment Reporting, Environmental Services and Safety-Kleen Sustainability Solutions are the Company's operating segments and reportable segments starting in the first quarter of 2021, with the operations not managed through the Company's operating segments described above continuing to be recorded as Corporate Items. See Note 17, "Segment Reporting" for more information. The amounts presented for the three months ended March 31, 2020 and any segment information presented as of December 31, 2020 have been recast to reflect the impact of such changes. In addition, certain intercompany transactions previously recorded in Corporate Items have been allocated to the segments. These reclassifications and adjustments had no effect on the consolidated statements of operations, consolidated statements of comprehensive income (loss), consolidated statements of cash flows or consolidated statements of stockholders' equity for any of the periods presented.
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REVENUES |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUES | REVENUES The Company generates revenues through its Environmental Services and Safety-Kleen Sustainability Solutions operating segments. The Company's Environmental Services operating segment generally has four sources of revenue and the Safety-Kleen Sustainability Solutions operating segment has two sources of revenue. Technical Services—Technical Services contribute to the revenues of the Environmental Services operating segment. These services are generated from fees charged for waste material management and disposal services including onsite environmental management services, collection and transportation, packaging, recycling, treatment and disposal of waste. Revenue is primarily generated by short-term projects, most of which are governed by master service agreements that are long-term in nature. These master service agreements are typically entered into with the Company's larger customers and outline the pricing and legal frameworks for such arrangements. Services are provided based on purchase orders or agreements with the customer and include prices based upon units of volume of waste and transportation and other fees. Collection and transportation revenues are recognized over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. Revenues for treatment and disposal of waste are recognized upon completion of treatment, final disposition in a landfill or incineration, or when the waste is shipped to a third party for processing and disposal. The Company periodically enters into bundled arrangements for the collection and transportation and disposal of waste. For such arrangements, transportation and disposal are considered distinct performance obligations and the Company allocates revenue to each based on the relative standalone selling price (i.e., the estimated price that a customer would pay for the services on a standalone basis). Revenues from waste that is not yet completely processed and disposed and the related costs are deferred. The deferred revenues and costs are recognized when the related services are completed. The period between collection and transportation and the final processing and disposal ranges depending on the location of the customer, but generally is measured in days. Field and Emergency Response Services—Field and Emergency Response Services contribute to the revenues of the Environmental Services operating segment. Field Services revenues are generated from cleanup services at customer sites, including municipalities and utilities, or other locations on a scheduled or emergency response basis. Services include confined space entry for tank cleaning, site decontamination, large remediation projects, demolition, spill cleanup on land and water, railcar cleaning, product recovery and transfer and vacuum services. Additional services include filtration and water treatment services. Response services for environmental, contamination or pandemic related emergencies include any scale from man-made disasters such as oil spills to natural disasters such as hurricanes. More recently demand has increased for projects involving contagion disinfection, decontamination and disposal services in response to the COVID-19 pandemic. Field and emergency response services are provided based on purchase orders or agreements with customers and include prices generally based upon daily, hourly or job rates for equipment, materials and personnel. The Company recognizes revenue for these services over time, as the customer receives and consumes the benefits of the service as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. The duration of such services can be over a number of hours, several days or even months for larger scale projects. Industrial Services and Other—Industrial Services contribute to the revenues of the Environmental Services operating segment. These revenues are primarily generated from industrial and specialty services provided to refineries, mines, upgraders, chemical plants, pulp and paper mills, manufacturing facilities, power generation facilities and other industrial customers throughout North America. Services include in-plant cleaning and maintenance services, plant outage and turnaround services, specialty cleaning services including chemical cleaning and high and ultra-high pressure water cleaning, daylighting, production services and upstream energy services. Services are provided based on purchase orders or agreements with the customer and include prices based upon daily, hourly or job rates for equipment, materials and personnel. The Company recognizes revenue for these services over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. Safety-Kleen Environmental Services—Safety-Kleen Environmental Services revenues contribute both to the Environmental Services operating segment and the Safety-Kleen Sustainability Solutions operating segment depending upon the nature of such revenues and operating responsibilities relative to driving these revenues. Revenues from providing containerized waste handling and disposal services, parts washer services and vacuum services, referred to collectively as the Safety-Kleen Environmental core service offerings, contribute to the revenues of the Environmental Services operating segment. In addition, sales of packaged blended oil products and other complementary product sales contribute to the revenues of the Environmental Services operating segment. Revenues generated from waste oil, anti-freeze and oil filter collection services, sales of bulk blended oil products and sales of bulk automotive fluids contribute to the Safety-Kleen Sustainability Solutions operating segment. Generally, the service related revenue is recognized over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The duration of such services can be over a number of hours or several days. The Company uses the input method to recognize revenue over time, based on time and materials incurred. Product revenue is recognized upon the transfer of control whereby control transfers when the products are delivered to the customer. Containerized waste services consist of profiling, collecting, transporting and recycling or disposing of a wide variety of waste. Related collection and transportation revenues are recognized over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. Parts washer services include customer use of our parts washer equipment, cleaning and maintenance of the parts washer equipment and removal and replacement of used cleaning fluids. Parts washer services are considered a single performance obligation due to the highly integrated and interdependent nature of the arrangement. Revenue from parts washer services is recognized over the service interval as the customer receives the benefit of the services. Safety-Kleen Oil—Safety-Kleen Oil revenues contribute to the revenues of the Safety-Kleen Sustainability Solutions segment. These revenues are generated from sales of high-quality base and blended lubricating oils to third-party distributors, government agencies, fleets, railroads and industrial customers. The business also sells recycled fuel oil to asphalt plants, industrial plants and pulp and paper companies. The used oil is also processed into vacuum gas oil which can be further re-refined into lubricant base oils or sold directly into the marine diesel oil fuel market. Revenue for oil products is recognized at a point in time, upon the transfer of control. Control transfers when the products are delivered to the customer. Disaggregation of Revenue We disaggregate the Company's third party revenues by geographic location and source of revenue as we believe these categories depict how revenue and cash flows are affected by economic factors (in thousands):
Contract Balances
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and customer advances and deposits or deferred revenue (contract liabilities) on the consolidated balance sheet. Generally, billing occurs subsequent to revenue recognition, as a right to payment is not just subject to passage of time, resulting in contract assets. Contract assets are classified as current. The Company sometimes receives advances or deposits from its customers before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. The contract liability balances at the beginning of each period presented were generally fully recognized in the subsequent three-month period.
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BUSINESS COMBINATIONS |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS 2021 Acquisition On March 27, 2021, the Company acquired a privately-owned business for $22.9 million cash consideration. The acquired company increases the Safety-Kleen Sustainability Solutions segment's network within the south central United States. In connection with this acquisition, a preliminary goodwill amount of $15.9 million was recognized. 2020 Acquisition On April 17, 2020, the Company acquired a privately-owned business for $8.8 million cash consideration. The acquired company expands the Safety-Kleen Sustainability Solutions segment's oil re-refining operations to the northeast United States. In connection with this acquisition, a preliminary goodwill amount of $1.4 million was recognized.
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INVENTORIES AND SUPPLIES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES AND SUPPLIES | INVENTORIES AND SUPPLIES Inventories and supplies consisted of the following (in thousands):
Supplies consists primarily of critical spare parts to support the Company's incinerator and re-refinery operations, personal protective equipment and other general supplies used in our normal day-to-day operations. Other inventories consisted primarily of parts washer components, cleaning fluids, absorbents and automotive fluids, such as windshield washer fluid and antifreeze.
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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):
________________ (1) Balances inclusive of gross right-of-use ("ROU") assets classified as finance leases of $8.9 million in both periods. (2) Balances inclusive of gross ROU assets classified as finance leases of $56.4 million and $47.2 million, respectively. (3) Balances inclusive of gross ROU assets classified as finance leases of $9.4 million and $9.3 million, respectively. Depreciation expense, inclusive of landfill and finance lease amortization, was $64.6 million and $65.4 million for the three months ended March 31, 2021 and March 31, 2020, respectively.
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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 by segment for the three months ended March 31, 2021 were as follows (in thousands):
The balances in the table above have been recast to reflect the Company's segment change in the first quarter of 2021. As discussed in Note 17, "Segment Reporting," as a result of operational and managerial changes, the Company changed its operating segments in accordance with ASC 280, Segment Reporting. In addition, the Company concluded that, for purposes of reviewing for potential goodwill impairment, it now has three reporting units. The Environmental Services operating segment has two reporting units consisting of (i) Environmental Sales and Service which includes the legacy Environmental Sales and Service reporting unit and certain operations previously included within Safety-Kleen Environmental Services including the core service offerings of containerized waste, parts washer and vacuum services and (ii) Environmental Facilities, unchanged from prior year. The Safety-Kleen Sustainability Solutions operating segment is a single reporting unit which includes the legacy Safety-Kleen Oil reporting unit and the remaining operations of the legacy Safety-Kleen Environmental Services reporting unit primarily consisting of collection services for waste oil, anti-freeze and used oil filters as well as the sale of bulk blended re-refined oil and other automotive related finished fluid products. The Company allocated goodwill to the newly identified reporting units using a relative fair value approach. In addition, the Company completed an assessment of any potential goodwill impairment for all reporting units immediately prior and subsequent to the reallocation and determined that no impairment existed. As of March 31, 2021 and December 31, 2020, the Company's intangible assets consisted of the following (in thousands):
Amortization expense of permits, customer and supplier relationships and other intangible assets was $7.6 million and $9.2 million in the three months ended March 31, 2021 and March 31, 2020, respectively. The expected amortization of the net carrying amount of finite-lived intangible assets at March 31, 2021 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 (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, 2021 through March 31, 2021 were as follows (in thousands):
In the three months ended March 31, 2021, there were no significant charges (benefits) resulting from changes in estimates for closure and post-closure liabilities. New asset retirement obligations incurred during the first three months of 2021 were discounted at the credit-adjusted risk-free rate of 4.84%.
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REMEDIAL LIABILITIES |
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Environmental Remediation Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REMEDIAL LIABILITIES | REMEDIAL LIABILITIES The changes to remedial liabilities from January 1, 2021 through March 31, 2021 were as follows (in thousands):
In the three months ended March 31, 2021, there were no significant charges (benefits) resulting from changes in estimates for remedial liabilities.
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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):
Financing Activities As of March 31, 2021 and December 31, 2020, the estimated fair value of the Company’s outstanding long-term debt, including the current portion, was $1.6 billion. The Company’s estimates of fair value of its long-term debt, including the current portion, are based on quoted market prices or other available market data which are considered Level 2 measures according to the fair value hierarchy. Level 2 utilizes quoted market prices in markets that are not active, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency for similar assets and liabilities. The Company maintains a $400.0 million revolving credit facility under which the Company had no outstanding loan balances as of March 31, 2021 and December 31, 2020. As of March 31, 2021, the Company had $270.2 million available to borrow under the revolving credit facility and outstanding letters of credit were $121.3 million. Cash Flow Hedges The Company’s strategy to hedge against fluctuations in variable interest rates involves entering into interest rate derivative agreements. Although the interest rate on the Term Loans is variable, the Company has effectively fixed the interest rate on $350.0 million aggregate principal amount of the Term Loans outstanding by entering into interest rate swap agreements in 2018 with a notional amount of $350.0 million. Under the terms of the interest rate swap agreements, the Company receives interest based on the one-month LIBOR index and pays interest at a weighted average annual interest rate of 2.92%, resulting in an effective annual interest rate of 4.67%. The interest rate swap agreements terminate in 2024. The Company recognizes derivative instruments as either assets or liabilities on the balance sheet at fair value. No ineffectiveness has been identified on these swaps and, therefore, all unrealized changes in fair value are recorded in accumulated other comprehensive loss. Amounts are reclassified from accumulated other comprehensive loss into interest expense on the statement of operations in the same period or periods during which the hedged transaction affects earnings. As of March 31, 2021 and December 31, 2020, the Company has recorded a derivative liability with a fair value of $28.1 million and $33.6 million, respectively, within accrued expenses in connection with these cash flow hedges. The fair value of the interest rate swaps is calculated using discounted cash flow valuation methodologies based upon the one-month LIBOR yield curves that are observable at commonly quoted intervals for the full term of the interest rate swaps and as such is considered a Level 2 measure according to the fair value hierarchy.
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INCOME TAXES |
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Mar. 31, 2021 | |
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’s effective tax rate for the three months ended March 31, 2021 was 31.5%, compared to 45.6%, respectively, for the comparable period in 2020. As of March 31, 2021 and December 31, 2020, the Company had recorded $5.0 million and $5.5 million, respectively, of liabilities for unrecognized tax benefits and $2.2 million and $2.1 million, respectively, of interest. |
EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE The following are computations of basic and diluted earnings per share (in thousands, except per share amounts):
For the three months ended March 31, 2021 and March 31, 2020, all then outstanding performance awards and restricted stock awards were included in the calculation of diluted earnings per share except for 34,219 and 121,726, respectively, of performance stock awards for which the performance criteria were not attained at the reporting dates and 6,000 and 9,925, respectively, of restricted stock awards which were excluded as their inclusion would have an antidilutive effect.
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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 impacts for the three months ended March 31, 2021 were as follows (in thousands):
The amount reclassified out of accumulated other comprehensive loss into the consolidated statement of operations, with presentation location, during the three months ended March 31, 2021 was as follows (in thousands):
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STOCK-BASED COMPENSATION |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Total stock-based compensation cost charged to selling, general and administrative expenses for the three months ended March 31, 2021 and March 31, 2020 was $3.5 million and $3.3 million, respectively. The total income tax benefit recognized in the consolidated statements of operations from stock-based compensation expense for the three months ended March 31, 2021 and March 31, 2020 was $0.7 million and $0.8 million, respectively. Restricted Stock Awards The following table summarizes information about restricted stock awards for the three months ended March 31, 2021:
As of March 31, 2021, there was $16.6 million of total unrecognized compensation cost arising from restricted stock awards. This cost is expected to be recognized over a weighted average period of 2.7 years. The total fair value of restricted stock vested during the three months ended March 31, 2021 and March 31, 2020 was $4.0 million and $5.3 million, respectively. Performance Stock Awards 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 targets currently based on revenue, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Total Recordable Incident Rate. In addition, performance stock awards include continued service conditions. The following table summarizes information about performance stock awards for the three months ended March 31, 2021:
As of March 31, 2021, there was $2.9 million of total unrecognized compensation cost arising from unvested performance stock awards deemed probable of vesting. The total fair value of performance awards vested during the three months ended March 31, 2021 and March 31, 2020 was $6.4 million and $1.3 million, respectively.
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2021 | |
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 waste. At March 31, 2021 and December 31, 2020, the Company had recorded reserves of $30.2 million and $29.8 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. In management's opinion, it is not reasonably possible that the potential liability beyond what has been recorded, if any, that may result from these actions, either individually or collectively, will have a material effect on our financial position, results of operations or cash flows. 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 March 31, 2021 and December 31, 2020, the $30.2 million and $29.8 million, respectively, of reserves consisted of (i) $23.9 million and $24 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) $6.3 million and $5.8 million, respectively, primarily related to federal, state and provincial enforcement actions, which were included in accrued expenses on the consolidated balance sheets. As of March 31, 2021, the principal legal and administrative proceedings in which the Company was involved, or which had been terminated during 2021, 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 two permits to dump organic liquids into lagoons on the property to a company unrelated to the Mercier Subsidiary. 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 (CAD) in general damages and $10.0 million (CAD) 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 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 future material effect on its financial position, results of operations or cash flows. 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 March 31, 2021 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 69 proceedings (excluding cases which have been settled but not formally dismissed) as of March 31, 2021, wherein persons claim personal injury resulting from the use of Safety-Kleen's parts washer equipment or cleaning products. These proceedings typically involve allegations that the solvent used in Safety-Kleen's parts washer 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 adequately warn the product user of potential risks, including a historic failure to warn that solvent contains trace amounts of toxic or hazardous substances such as benzene. The Company 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. The Company 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 these claims. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. Consequently, the Company is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters as of March 31, 2021. From January 1, 2021 to March 31, 2021, five 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 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 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 130 sites which are subject to or are proposed to become subject to proceedings under federal or state Superfund laws. Of the 130 Superfund related sites, five (including the BR Facility described below) involve facilities that are now owned or leased by the Company and 125 involve third-party sites to which either the Company or the prior owners of certain of the Company’s facilities shipped wastes. Of the 125 third-party sites, 31 are now settled, 15 are currently requiring expenditures on remediation and 79 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. The Company believes its potential liability could exceed $1.0 million at three of the 130 Superfund related 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 U.S. Environmental Protection Agency ("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. In 2018, the Company completed performing corrective actions at the BR Facility under an order issued by the Louisiana Department of Environmental Quality and has also completed conducting the remedial investigation feasibility study for Devil's Swamp under the order issued by the EPA at which point the feasibility study, with several remedial alternatives, was submitted to the EPA for review. During 2020, the EPA signed a Record of Decision which defined the remediation alternative selected and approved by the EPA and in return, the Company increased the estimated remedial liability for this inactive site by $3.3 million. Changes in the natural landscape and/or new information identified during the remediation could impact this estimate, however are not expected to have a future material effect on the Company's financial position, liquidity or results of operation. Third-Party Sites. Of the 125 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 and McKesson which had shipped wastes to those sites. Accordingly, Waste Management or 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 two other entities, the Company does not have an indemnity agreement with respect to any of the 125 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 March 31, 2021 and December 31, 2020, there were no proceedings for which the Company reasonably believes that the sanctions could equal or exceed $1.0 million. The Company believes that the fines or other penalties in these or any of the other regulatory proceedings will not, individually or in the aggregate, have a material effect on its financial condition, results of operations or cash flows.
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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 described in the Changes in Operating Segments section of Note 2, "Significant Accounting Policies" during the first quarter of 2021, certain of the Company's businesses undertook a reorganization which included changes to the underlying business and management structures. The Company's chief operating decision maker also requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance so that the information would align with the new operating structure of the business. Due to these changes the Company reassessed its operating segment conclusions in the first quarter of 2021 which resulted in a change in the operating segments. The Company consolidated the core services of Safety-Kleen Environmental Services into its Environmental Services segment, eliminated its Safety-Kleen segment and created the Safety-Kleen Sustainability Solutions segment. In addition, certain intercompany transactions previously recorded as Corporate Items have been allocated to the segments. All the historical balances presented below have been recast to reflect the impact of these changes. 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. Transactions between the segments are accounted for at the Company’s best estimate based on similar transactions with outside customers. 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, 2021 and March 31, 2020 (in thousands):
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, stock-based compensation, depreciation and amortization, net interest expense, loss on early extinguishment of debt, provision for income taxes and excludes other gains, losses or non-cash charges not deemed representative of fundamental segment results and other expense, net. Beginning in the first quarter of 2021, we revised our calculation of reported Adjusted EBITDA to add stock-based compensation, a non-cash item, to other charges which are added back to net income determined in accordance with generally accepted accounting principles ("GAAP") for purposes of calculating Adjusted EBITDA. The amount added back each period matches the line item for stock-based compensation as recorded on the consolidated statements of cash flows. All relevant prior period Adjusted EBITDA amounts were recast to provide comparative information. The following table presents Adjusted EBITDA information used by management by reported segment (in thousands):
The following table presents certain assets by reportable segment and in the aggregate (in thousands):
The following table presents the total assets by geographical area (in thousands):
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SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |
Changes in Operating Segments | During the first quarter of 2021, the Company reorganized its Safety-Kleen business. The collection services for waste oil, used oil filters, antifreeze and related items and bulk blended oil sales operations were combined with the Safety-Kleen Oil business to form the Safety-Kleen Sustainability Solutions business. Under this structure, Safety-Kleen Sustainability Solutions will encompass both sides of the spread the Company manages in its re-refinery business, and the Company expects this change to drive additional growth in its sustainable lubricant products and related services. Concurrently with this change, the Company consolidated the Safety-Kleen branches' core offerings, including containerized waste, parts washer and vacuum services, into the legacy Clean Harbors Environmental Services sales and service operations. The Company expects this change to foster enhanced cross-selling opportunities within the environmental businesses and increase market presence with small quantity generators of hazardous waste. In restructuring the operations of the Company in this manner, the information that the chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed to conform to this new operating structure of the business and the Company reevaluated the identification of its operating segments. In accordance with ASC 280, Segment Reporting, Environmental Services and Safety-Kleen Sustainability Solutions are the Company's operating segments and reportable segments starting in the first quarter of 2021, with the operations not managed through the Company's operating segments described above continuing to be recorded as Corporate Items. See Note 17, "Segment Reporting" for more information. The amounts presented for the three months ended March 31, 2020 and any segment information presented as of December 31, 2020 have been recast to reflect the impact of such changes. In addition, certain intercompany transactions previously recorded in Corporate Items have been allocated to the segments. These reclassifications and adjustments had no effect on the consolidated statements of operations, consolidated statements of comprehensive income (loss), consolidated statements of cash flows or consolidated statements of stockholders' equity for any of the periods presented.
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Revenue recognition | The Company generates revenues through its Environmental Services and Safety-Kleen Sustainability Solutions operating segments. The Company's Environmental Services operating segment generally has four sources of revenue and the Safety-Kleen Sustainability Solutions operating segment has two sources of revenue. Technical Services—Technical Services contribute to the revenues of the Environmental Services operating segment. These services are generated from fees charged for waste material management and disposal services including onsite environmental management services, collection and transportation, packaging, recycling, treatment and disposal of waste. Revenue is primarily generated by short-term projects, most of which are governed by master service agreements that are long-term in nature. These master service agreements are typically entered into with the Company's larger customers and outline the pricing and legal frameworks for such arrangements. Services are provided based on purchase orders or agreements with the customer and include prices based upon units of volume of waste and transportation and other fees. Collection and transportation revenues are recognized over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. Revenues for treatment and disposal of waste are recognized upon completion of treatment, final disposition in a landfill or incineration, or when the waste is shipped to a third party for processing and disposal. The Company periodically enters into bundled arrangements for the collection and transportation and disposal of waste. For such arrangements, transportation and disposal are considered distinct performance obligations and the Company allocates revenue to each based on the relative standalone selling price (i.e., the estimated price that a customer would pay for the services on a standalone basis). Revenues from waste that is not yet completely processed and disposed and the related costs are deferred. The deferred revenues and costs are recognized when the related services are completed. The period between collection and transportation and the final processing and disposal ranges depending on the location of the customer, but generally is measured in days. Field and Emergency Response Services—Field and Emergency Response Services contribute to the revenues of the Environmental Services operating segment. Field Services revenues are generated from cleanup services at customer sites, including municipalities and utilities, or other locations on a scheduled or emergency response basis. Services include confined space entry for tank cleaning, site decontamination, large remediation projects, demolition, spill cleanup on land and water, railcar cleaning, product recovery and transfer and vacuum services. Additional services include filtration and water treatment services. Response services for environmental, contamination or pandemic related emergencies include any scale from man-made disasters such as oil spills to natural disasters such as hurricanes. More recently demand has increased for projects involving contagion disinfection, decontamination and disposal services in response to the COVID-19 pandemic. Field and emergency response services are provided based on purchase orders or agreements with customers and include prices generally based upon daily, hourly or job rates for equipment, materials and personnel. The Company recognizes revenue for these services over time, as the customer receives and consumes the benefits of the service as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. The duration of such services can be over a number of hours, several days or even months for larger scale projects. Industrial Services and Other—Industrial Services contribute to the revenues of the Environmental Services operating segment. These revenues are primarily generated from industrial and specialty services provided to refineries, mines, upgraders, chemical plants, pulp and paper mills, manufacturing facilities, power generation facilities and other industrial customers throughout North America. Services include in-plant cleaning and maintenance services, plant outage and turnaround services, specialty cleaning services including chemical cleaning and high and ultra-high pressure water cleaning, daylighting, production services and upstream energy services. Services are provided based on purchase orders or agreements with the customer and include prices based upon daily, hourly or job rates for equipment, materials and personnel. The Company recognizes revenue for these services over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. Safety-Kleen Environmental Services—Safety-Kleen Environmental Services revenues contribute both to the Environmental Services operating segment and the Safety-Kleen Sustainability Solutions operating segment depending upon the nature of such revenues and operating responsibilities relative to driving these revenues. Revenues from providing containerized waste handling and disposal services, parts washer services and vacuum services, referred to collectively as the Safety-Kleen Environmental core service offerings, contribute to the revenues of the Environmental Services operating segment. In addition, sales of packaged blended oil products and other complementary product sales contribute to the revenues of the Environmental Services operating segment. Revenues generated from waste oil, anti-freeze and oil filter collection services, sales of bulk blended oil products and sales of bulk automotive fluids contribute to the Safety-Kleen Sustainability Solutions operating segment. Generally, the service related revenue is recognized over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The duration of such services can be over a number of hours or several days. The Company uses the input method to recognize revenue over time, based on time and materials incurred. Product revenue is recognized upon the transfer of control whereby control transfers when the products are delivered to the customer. Containerized waste services consist of profiling, collecting, transporting and recycling or disposing of a wide variety of waste. Related collection and transportation revenues are recognized over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. Parts washer services include customer use of our parts washer equipment, cleaning and maintenance of the parts washer equipment and removal and replacement of used cleaning fluids. Parts washer services are considered a single performance obligation due to the highly integrated and interdependent nature of the arrangement. Revenue from parts washer services is recognized over the service interval as the customer receives the benefit of the services. Safety-Kleen Oil—Safety-Kleen Oil revenues contribute to the revenues of the Safety-Kleen Sustainability Solutions segment. These revenues are generated from sales of high-quality base and blended lubricating oils to third-party distributors, government agencies, fleets, railroads and industrial customers. The business also sells recycled fuel oil to asphalt plants, industrial plants and pulp and paper companies. The used oil is also processed into vacuum gas oil which can be further re-refined into lubricant base oils or sold directly into the marine diesel oil fuel market. Revenue for oil products is recognized at a point in time, upon the transfer of control. Control transfers when the products are delivered to the customer.
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REVENUES (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | We disaggregate the Company's third party revenues by geographic location and source of revenue as we believe these categories depict how revenue and cash flows are affected by economic factors (in thousands):
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Schedule of Contract Balances |
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INVENTORIES AND SUPPLIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories and Supplies | Inventories and supplies consisted of the following (in thousands):
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands):
________________ (1) Balances inclusive of gross right-of-use ("ROU") assets classified as finance leases of $8.9 million in both periods. (2) Balances inclusive of gross ROU assets classified as finance leases of $56.4 million and $47.2 million, respectively. (3) Balances inclusive of gross ROU assets classified as finance leases of $9.4 million and $9.3 million, respectively.
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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes to Goodwill | The changes in goodwill by segment for the three months ended March 31, 2021 were as follows (in thousands):
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Schedule of Finite-Lived Intangible Assets | As of March 31, 2021 and December 31, 2020, the Company's intangible assets consisted of the following (in thousands):
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Summary of Indefinite-Lived Intangible Assets | As of March 31, 2021 and December 31, 2020, the Company's 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 March 31, 2021 was as follows (in thousands):
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ACCRUED EXPENSES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands):
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CLOSURE AND POST-CLOSURE LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2021 through March 31, 2021 were as follows (in thousands):
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REMEDIAL LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental Remediation Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes to Remedial Liabilities | The changes to remedial liabilities from January 1, 2021 through March 31, 2021 were as follows (in thousands):
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FINANCING ARRANGEMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the Entity's Financial Arrangements | The following table is a summary of the Company’s financing arrangements (in thousands):
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EARNINGS PER SHARE (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Basic and Diluted Earnings per Share Computations | The following are computations of basic and diluted earnings per share (in thousands, except per share amounts):
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss by component and related tax impacts for the three months ended March 31, 2021 were as follows (in thousands):
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Schedule of Reclassification Out of Accumulated Other Comprehensive Income | The amount reclassified out of accumulated other comprehensive loss into the consolidated statement of operations, with presentation location, during the three months ended March 31, 2021 was as follows (in thousands):
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STOCK-BASED COMPENSATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Awards | The following table summarizes information about restricted stock awards for the three months ended March 31, 2021:
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Schedule of Performance Stock Awards | The following table summarizes information about performance stock awards for the three months ended March 31, 2021:
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SEGMENT REPORTING (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Third Party Revenues to Direct Revenues | The following table reconciles third-party revenues to direct revenues for the three months ended March 31, 2021 and March 31, 2020 (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):
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Schedule of Assets by Segment | The following table presents certain assets by reportable segment and in the aggregate (in thousands):
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Long-lived Assets by Geographic Areas | The following table presents the total assets by geographical area (in thousands):
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REVENUES (Contract Balances) (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 620,184 | $ 611,534 |
Contract assets (unbilled receivables) | 55,239 | 55,681 |
Contract liabilities (deferred revenue) | $ 83,165 | $ 74,066 |
REVENUES (Narrative) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2021
source
| |
Disaggregation of Revenue [Line Items] | |
Deferred contract cost, recognition period | 3 months |
Environmental Services | |
Disaggregation of Revenue [Line Items] | |
Number of revenue sources | 4 |
Safety-Kleen Sustainability Solutions | |
Disaggregation of Revenue [Line Items] | |
Number of revenue sources | 2 |
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 27, 2021 |
Apr. 17, 2020 |
Mar. 31, 2021 |
|
Business Acquisition [Line Items] | |||
Goodwill recognized | $ 15,875 | ||
2021 Acquisitions | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 22,900 | ||
Goodwill recognized | $ 15,900 | ||
2020 Acquisitions | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 8,800 | ||
Goodwill recognized | $ 1,400 |
INVENTORIES AND SUPPLIES (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory [Line Items] | ||
Inventories and supplies | $ 219,499 | $ 220,498 |
Oil and oil related products | ||
Inventory [Line Items] | ||
Inventories and supplies | 76,106 | 76,209 |
Supplies | ||
Inventory [Line Items] | ||
Inventories and supplies | 120,814 | 120,007 |
Solvent and solutions | ||
Inventory [Line Items] | ||
Inventories and supplies | 9,145 | 8,812 |
Other | ||
Inventory [Line Items] | ||
Inventories and supplies | $ 13,434 | $ 15,470 |
PROPERTY, PLANT AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation expense, inclusive of landfill and finance lease amortization | $ 64.6 | $ 65.4 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Changes to Goodwill) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at January 1, 2021 | $ 527,023 |
Increase from current period acquisition | 15,875 |
Foreign currency translation | 707 |
Balance at March 31, 2021 | 543,605 |
Environmental Services | |
Goodwill [Roll Forward] | |
Balance at January 1, 2021 | 401,918 |
Increase from current period acquisition | 0 |
Foreign currency translation | 520 |
Balance at March 31, 2021 | 402,438 |
Safety-Kleen Sustainability Solutions | |
Goodwill [Roll Forward] | |
Balance at January 1, 2021 | 125,105 |
Increase from current period acquisition | 15,875 |
Foreign currency translation | 187 |
Balance at March 31, 2021 | $ 141,167 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021
USD ($)
reportingUnit
|
Mar. 31, 2020
USD ($)
|
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Number of reporting units | reportingUnit | 3 | |
Amortization of permits and other intangible assets | $ | $ 7.6 | $ 9.2 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Expected Future Amortization) (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 (nine months) | $ 22,674 | |
2022 | 30,013 | |
2023 | 25,681 | |
2024 | 24,183 | |
2025 | 23,205 | |
Thereafter | 131,016 | |
Finite-lived intangible assets, net | $ 256,772 | $ 263,464 |
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued insurance | $ 76,153 | $ 77,514 |
Accrued interest | 9,286 | 19,697 |
Accrued compensation and benefits | 78,928 | 81,437 |
Accrued income, real estate, sales and other taxes | 30,804 | 25,843 |
Interest rate swap liability | 28,074 | 33,630 |
Accrued other | 60,967 | 57,702 |
Total accrued expenses | $ 284,212 | $ 295,823 |
CLOSURE AND POST-CLOSURE LIABILITIES (Narrative) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Credit-adjusted risk-free rate | 4.84% |
FINANCING ARRANGEMENTS - Summary of Financing Arrangements (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 7,535 | $ 7,535 |
Long-term debt, at par | 1,562,742 | 1,564,626 |
Unamortized debt issuance costs and premium, net | (14,225) | (14,985) |
Long-term debt, at carrying value | 1,548,517 | 1,549,641 |
Secured debt | Secured senior Term Loans due June 30, 2024 | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 7,535 | 7,535 |
Long-term debt, at par | 717,742 | 719,626 |
Unsecured debt | Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes") | ||
Debt Instrument [Line Items] | ||
Long-term debt, at par | $ 545,000 | $ 545,000 |
Interest rate (as a percentage) | 4.875% | 4.875% |
Unsecured debt | Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes") | ||
Debt Instrument [Line Items] | ||
Long-term debt, at par | $ 300,000 | $ 300,000 |
Interest rate (as a percentage) | 5.125% | 5.125% |
FINANCING ARRANGEMENTS - Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Debt Instrument [Line Items] | ||
Debt fair value | $ 1,600,000,000 | $ 1,600,000,000 |
Available to borrow and outstanding letters of credit | 270,200,000 | |
Outstanding letters of credit | $ 121,300,000 | |
Effective interest rate percentage | 4.67% | |
Interest rate swap, liability | $ 28,100,000 | 33,600,000 |
Interest Rate Swap | ||
Debt Instrument [Line Items] | ||
Notional amount of interest rate swap agreements | $ 350,000,000.0 | |
Interest rate percentage | 2.92% | |
Term Loans with Interest Rate Swap Agreements | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 350,000,000.0 | |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Revolving credit facility maximum borrowing capacity | $ 400,000,000.0 | $ 400,000,000.0 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 31.50% | 45.60% | |
Unrecognized tax benefits | $ 5.0 | $ 5.5 | |
Interest on unrecognized tax benefits | $ 2.2 | $ 2.1 |
EARNINGS PER SHARE (Reconciliation of Basic and Diluted Earnings Per Share Computations) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Numerator for basic and diluted earnings per share: | ||
Net income | $ 21,736 | $ 11,572 |
Denominator: | ||
Basic shares outstanding (in shares) | 54,723 | 55,757 |
Dilutive effect of outstanding stock awards (in shares) | 320 | 298 |
Dilutive shares outstanding (in shares) | 55,043 | 56,055 |
Basic earnings per share (in dollars per share) | $ 0.40 | $ 0.21 |
Diluted earnings per share (in dollars per share) | $ 0.39 | $ 0.21 |
EARNINGS PER SHARE (Anti-Dilutive Securities) (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Performance stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earning per share (in shares) | 34,219 | 121,726 |
Restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of earning per share (in shares) | 6,000 | 9,925 |
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassified Out of Accumulated Other Comprehensive Loss (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Unrealized (Loss) Gain on Interest Rate Hedge | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Interest expense, net of interest income | $ (2,448) |
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Share-based Payment Arrangement [Abstract] | ||
Stock-based compensation | $ 3.5 | $ 3.3 |
Income tax benefit | $ 0.7 | $ 0.8 |
STOCK-BASED COMPENSATION - Restricted Stock Awards (Details) - Restricted stock awards - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Number of Shares | ||
Beginning balance (in shares) | 493,879 | |
Granted (in shares) | 6,000 | |
Vested (in shares) | (49,578) | |
Forfeited (in shares) | (25,205) | |
Ending balance (in shares) | 425,096 | |
Weighted Average Grant-Date Fair Value | ||
Beginning of period (in dollars per share) | $ 59.74 | |
Granted (in dollars per share) | 87.22 | |
Vested (in dollars per share) | 56.29 | |
Forfeited (in dollars per share) | 60.58 | |
End of period (in dollars per share) | $ 60.48 | |
Unrecognized compensation cost | $ 16.6 | |
Period for recognition (in years) | 2 years 8 months 12 days | |
Fair value restricted stock | $ 4.0 | $ 5.3 |
STOCK-BASED COMPENSATION - Performance Stock Awards (Details) - Performance stock awards - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Number of Shares | ||
Beginning balance (in shares) | 254,449 | |
Vested (in shares) | (71,815) | |
Forfeited (in shares) | (18,395) | |
Ending balance (in shares) | 164,239 | |
Weighted Average Grant-Date Fair Value | ||
Beginning of period (in dollars per share) | $ 61.75 | |
Vested (in dollars per share) | 62.27 | |
Forfeited (in dollars per share) | 61.75 | |
End of period (in dollars per share) | $ 61.53 | |
Unrecognized compensation cost | $ 2.9 | |
Fair value restricted stock | $ 6.4 | $ 1.3 |
SEGMENT REPORTING (Geographical Information) (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 4,152,539 | $ 4,131,520 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 3,472,053 | 3,447,811 |
Canada and other foreign | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 680,486 | $ 683,709 |
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