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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING 
Segment reporting is prepared on the same basis that the Company's chief executive officer, who is the Company's chief operating decision maker, manages the business, makes operating decisions and assesses performance. The Company is managed and reports as two operating segments; (i) the Environmental Services segment and (ii) the Safety-Kleen Sustainability Solutions segment.
Third-party revenue is revenue billed to outside customers by a particular segment. Direct revenues is revenue allocated to the segment providing the product or service. Intersegment revenues represent the sharing of third-party revenues among the segments based on products and services provided by each segment as if the products and services were sold directly to the third-party. 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, 2022 and 2021 (in thousands):
For the Three Months EndedFor the Three Months Ended
September 30, 2022September 30, 2021
Third-party revenuesIntersegment revenues, netDirect revenuesThird-party revenuesIntersegment revenues, netDirect revenues
Environmental Services$1,080,032 $6,452 $1,086,484 $743,831 $1,802 $745,633 
Safety-Kleen Sustainability Solutions282,771 (6,452)276,319 207,589 (1,802)205,787 
Corporate Items283 — 283 59 — 59 
Total$1,363,086 $— $1,363,086 $951,479 $— $951,479 
For the Nine Months EndedFor the Nine Months Ended
September 30, 2022September 30, 2021
Third-party revenuesIntersegment revenues, netDirect revenuesThird-party revenuesIntersegment revenues, netDirect revenues
Environmental Services$3,105,336 $19,336 $3,124,672 $2,119,856 $4,476 $2,124,332 
Safety-Kleen Sustainability Solutions782,737 (19,336)763,401 566,012 (4,476)561,536 
Corporate Items434 — 434 217 — 217 
Total$3,888,507 $— $3,888,507 $2,686,085 $— $2,686,085 
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 (income) expense, net.
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,
 2022202120222021
Adjusted EBITDA:  
Environmental Services$260,687 $166,471 $713,630 $482,766 
Safety-Kleen Sustainability Solutions103,156 70,810 252,043 165,756 
Corporate Items(55,288)(52,197)(167,789)(146,216)
Total308,555 185,084 797,884 502,306 
Reconciliation to Consolidated Statements of Operations:  
Accretion of environmental liabilities3,246 2,799 9,599 8,625 
Stock-based compensation7,828 6,001 20,375 12,786 
Depreciation and amortization88,394 71,451 260,560 215,206 
Income from operations209,087 104,833 507,350 265,689 
Other (income) expense, net(104)(199)(2,073)2,509 
Gain on sale of business— — (8,864)— 
Interest expense, net of interest income28,081 17,984 79,354 53,953 
Income before provision for income taxes$181,110 $87,048 $438,933 $209,227