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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2021
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 and nine months ended September 30, 2021 and September 30, 2020 (in thousands):
For the Three Months Ended September 30, 2021For the Three Months Ended September 30, 2020
Third-party revenuesIntersegment revenues, netDirect revenuesThird-party revenuesIntersegment revenues, netDirect revenues
Environmental Services$743,831 $1,802 $745,633 $651,689 $(1,129)$650,560 
Safety-Kleen Sustainability Solutions207,589 (1,802)205,787 127,583 1,129 128,712 
Corporate Items59 — 59 72 — 72 
Total$951,479 $— $951,479 $779,344 $— $779,344 
For the Nine Months Ended September 30, 2021For the Nine Months Ended September 30, 2020
Third-party revenuesIntersegment revenues, netDirect revenuesThird-party revenuesIntersegment revenues, netDirect revenues
Environmental Services$2,119,856 $4,476 $2,124,332 $1,969,445 $(1,099)$1,968,346 
Safety-Kleen Sustainability Solutions566,012 (4,476)561,536 378,244 1,099 379,343 
Corporate Items217 — 217 218 — 218 
Total$2,686,085 $— $2,686,085 $2,347,907 $— $2,347,907 

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):
 For the Three Months EndedFor the Nine Months Ended
September 30,September 30,
 2021202020212020
Adjusted EBITDA:  
Environmental Services$166,471 $180,002 $482,766 $502,101 
Safety-Kleen Sustainability Solutions70,810 29,613 165,756 62,248 
Corporate Items(52,197)(41,782)(146,216)(132,369)
Total185,084 167,833 502,306 431,980 
Reconciliation to Consolidated Statements of Operations:  
Accretion of environmental liabilities2,799 2,822 8,625 8,149 
Stock-based compensation6,001 6,662 12,786 12,739 
Depreciation and amortization71,451 74,470 215,206 221,497 
Income from operations104,833 83,879 265,689 189,595 
Other (income) expense, net(199)(2,268)2,509 597 
Loss on sale of businesses— 118 — 3,376 
Interest expense, net of interest income17,984 17,407 53,953 54,848 
Income before provision for income taxes$87,048 $68,622 $209,227 $130,774 
The following table presents certain assets by reportable segment and in the aggregate (in thousands):
September 30, 2021December 31, 2020
Property, plant and equipment, net:  
Environmental Services$1,050,901 $1,068,910 
Safety-Kleen Sustainability Solutions363,857 366,160 
Corporate Items93,598 90,228 
Total property, plant and equipment, net$1,508,356 $1,525,298 
Goodwill and Permits and other intangibles, net:  
Environmental Services  
Goodwill$402,025 $401,918 
Permits and other intangibles, net217,188 228,237 
Total Environmental Services619,213 630,155 
Safety-Kleen Sustainability Solutions
Goodwill$141,003 $125,105 
Permits and other intangibles, net149,309 158,383 
Total Safety-Kleen Sustainability Solutions290,312 283,488 
Total$909,525 $913,643 
The following table presents the total assets by geographical area (in thousands):
September 30, 2021December 31, 2020
United States$3,629,056 $3,447,811 
Canada and other foreign725,243 683,709 
Total$4,354,299 $4,131,520