SEGMENT REPORTING

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

During 2012, the Company’s operations were managed in four reportable segments: Technical Services, Field Services, Industrial Services and Oil and Gas Field Services. Performance of the segments is evaluated on several factors, of which the primary financial measure is "Adjusted EBITDA," which consists of net income plus accretion of environmental liabilities, depreciation and amortization, net interest expense, and provision for income taxes. Also excluded are other expense (income), loss on early extinguishment of debt and income from discontinued operations, net of tax as these amounts are not considered part of usual business operations. Transactions between the segments are accounted for at the Company's estimate based on similar transactions with outside customers.

The operations not managed through the Company's four segments are recorded as "Corporate Items." Corporate Items revenues consist of two different operations for which the revenues are insignificant. Corporate Items cost of revenues represents certain central services that are not allocated to the four segments for internal reporting purposes. Corporate Items selling, general and administrative expenses include typical corporate items such as legal, accounting and other items of a general corporate nature that are not allocated to the Company's four segments.

As stated in Note 3, “Business Combinations,” no revenue, expense, income or loss of Safety-Kleen is included in the Company's consolidated results of operations for the year ended December 31, 2012 due to the immateriality of the operating results subsequent to the December 28, 2012 acquisition date. Safety-Kleen's balance sheet amounts have been reported in total for purposes of the segment disclosures as of December 31, 2012. With the acquisition, the Company is reviewing its consolidated operations and organizational structure on a go forward basis. The Company expects to adjust its reportable segments and reporting units in the first quarter of the Company's 2013 fiscal year after completion of its review.

The following table reconciles third party revenues to direct revenues for the years ended December 31, 2012, 2011 and 2010 (in thousands). Third party revenue is revenue billed to outside customers by a particular segment. Direct revenue is the revenue allocated to the segment performing the provided service. The Company analyzes results of operations based on direct revenues because the Company believes that these revenues and related expenses best reflect the manner in which operations are managed. Intersegment revenues represent the sharing of third party revenues among the segments based on products and services provided by each segment as if the products and services were sold directly to the third party. The intersegment revenues are shown net. The negative intersegment revenues are due to more transfers out of customer revenues to other segments than transfers in of revenues from other segments.

	For the Year Ended December 31, 2012
	Technical Services		Field Services			Industrial Services			Oil and Gas Field Services			Corporate Items			Totals
Third party revenues	$	907,372	$	256,295		$	605,235		$	417,530		$	1,476		$	2,187,908
Intersegment revenues, net	28,526		(17,079		)	(23,338		)	11,891			—			—
Corporate Items, net	1,856		752			(249		)	(489		)	$	(1,870	)	—
Direct revenues	$	937,754	$	239,968		$	581,648		$	428,932		$	(394	)	$	2,187,908

	For the Year Ended December 31, 2011
	Technical Services		Field Services (1)			Industrial Services			Oil and Gas Field Services			Corporate Items			Totals
Third party revenues	$	858,954	$	280,269		$	479,376		$	364,486		1,051			$	1,984,136
Intersegment revenues, net	24,171		(20,144		)	(9,175		)	5,148			—			—
Corporate Items, net	2,249		187			(251		)	(444		)	(1,741		)	—
Direct revenues	$	885,374	$	260,312		$	469,950		$	369,190		$	(690	)	$	1,984,136

	For the Year Ended December 31, 2010
	Technical Services		Field Services (1)			Industrial Services			Oil and Gas Field Services		Corporate Items			Totals
Third party revenues	$	730,404	$	448,386		$	370,569		$	181,872	$	13		$	1,731,244
Intersegment revenues, net	30,097		(32,860		)	(7,929		)	10,692		—			—
Corporate Items, net	2,844		(740		)	(381		)	130		(1,853		)	—
Direct revenues	$	763,345	$	414,786		$	362,259		$	192,694	$	(1,840	)	$	1,731,244

_______________________________________

(1) During the year ended December 31, 2011, third party revenues for the Field Services segment included revenues of $43.6 million associated with the oil spill response efforts in Montana. During the year ended December 31, 2010, third party revenues for the Field Services segment included revenues of $253.0 million associated with the oil spill response efforts in the Gulf of Mexico and Michigan.

The following table presents information used by management by reported segment (in thousands). The Company does not allocate interest expense, income taxes, depreciation, amortization, accretion of environmental liabilities, other (income) expense, and loss on early extinguishment of debt to segments.

	For the Year Ended December 31,
	2012			2011			2010
Adjusted EBITDA:
Technical Services	$	244,989		$	235,674		$	190,559
Field Services	25,087			39,152			103,565
Industrial Services	139,923			103,535			76,573
Oil and Gas Field Services	75,809			76,383			30,857
Corporate Items	(112,041		)	(104,736		)	(86,862		)
Total	373,767			350,008			314,692
Reconciliation to Consolidated Statements of Income:
Accretion of environmental liabilities	9,917			9,680			10,307
Depreciation and amortization	161,646			122,663			92,473
Income from operations	202,204			217,665			211,912
Other expense (income)	802			(6,402		)	(2,795		)
Loss on early extinguishment of debt	26,385			—			2,294
Interest expense, net of interest income	47,287			39,389			27,936
Income from continuing operations before provision for income taxes	$	127,730		$	184,678		$	184,477

Revenue, property, plant and equipment and intangible assets outside of the United States

For the year ended December 31, 2012, the Company generated $1,254.2 million or 57.3% of revenues in the United States and Puerto Rico, $933.0 million or 42.6% of revenues in Canada, and less than 1.0% of revenues in other international locations. For the year ended December 31, 2011, the Company generated $1,149.4 million or 57.9% of revenues in the United States and Puerto Rico, $833.6 million or 42% of revenues in Canada, and less than 1.0% of revenues in other international locations. For the year ended December 31, 2010, the Company generated $1,144.1 million or 66.1% of revenues in the United States and Puerto Rico, $586.4 million or 33.9% of revenues in Canada, and less than 1.0% of revenues in other international locations.

As of December 31, 2012, the Company had property, plant and equipment, net of depreciation and amortization of $1.5 billion, and permits and other intangible assets of $572.8 million. Of these totals, $640.6 million or 41.8% of property, plant and equipment and $78.8 million or 13.8% of permits and other intangible assets were in Canada, with the balance being in the United States and Puerto Rico (except for insignificant assets in other foreign countries). As of December 31, 2011, the Company had property, plant and equipment, net of depreciation and amortization of $903.9 million, and permits and other intangible assets of $139.6 million. Of these totals, $509.6 million or 56.4% of property, plant and equipment and $74.9 million or 53.7% of permits and other intangible assets were in Canada, with the balance being in the United States and Puerto Rico (except for insignificant assets in other foreign countries).

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

	December 31, 2012		December 31, 2011
Property, plant and equipment, net
Technical Services	$	320,707	$	308,118
Field Services	35,810		30,296
Industrial Services	318,431		254,469
Oil and Gas Field Services	275,474		267,987
Safety-Kleen	514,664		—
Corporate Items	66,677		43,077
Total property, plant and equipment, net	$	1,531,763	$	903,947
Intangible assets:
Technical Services
Goodwill	$	45,404	$	44,410
Permits and other intangibles, net	77,773		81,605
Total Technical Services	123,177		126,015
Field Services
Goodwill	2,232		2,232
Permits and other intangibles, net	2,987		1,204
Total Field Services	5,219		3,436
Industrial Services
Goodwill	69,624		45,444
Permits and other intangibles, net	37,038		19,701
Total Industrial Services	106,662		65,145
Oil and Gas Field Services
Goodwill	39,762		30,306
Permits and other intangibles, net	33,619		37,134
Total Oil and Gas Field Services	73,381		67,440
Safety-Kleen
Goodwill	436,749		—
Permits and other intangibles, net	421,400		—
Total Safety-Kleen	858,149		—
Total	$	1,166,588	$	262,036

The following table presents the total assets by reported segment (in thousands).

	December 31, 2012		December 31, 2011
Technical Services	$	610,692	$	604,904
Field Services	50,210		37,850
Industrial Services	468,699		345,202
Oil and Gas Field Services	369,605		429,938
Safety-Kleen	1,669,361		—
Corporate Items	657,239		667,909
Total	$	3,825,806	$	2,085,803

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

	December 31, 2012		December 31, 2011
United States	$	2,564,609	$	1,119,491
Canada	1,260,421		961,936
Other foreign	776		4,376
Total	$	3,825,806	$	2,085,803