SEGMENT REPORTING

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

During the first quarter of 2013, the Company adjusted its operating segments to integrate the business activities of Safety-Kleen, acquired in December 2012, and to incorporate other changes made in 2013 to the manner in which the Company manages its business, makes operating decisions and assesses its performance. The Company's operations are now managed in five reportable segments: Technical Services, Oil Re-refining and Recycling, SK Environmental Services, Industrial and Field Services and Oil and Gas Field Services. The prior year segment information has been recast to conform to the current year presentation.

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, provision for income taxes and pre-tax, non-cash acquisition accounting adjustments. Also excluded is other expense (income) as this amount is not considered part of usual business operations. Transactions between the segments are accounted for at the Company’s estimate of fair value based on similar transactions with outside customers. 

The operations not managed through the Company’s five reportable 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 five 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 five reportable segments. Corporate Items revenues for the three months ended March 31, 2013 includes a one-time, non-cash reduction of approximately $10.2 million due to the impact of acquisition accounting adjustments on Safety-Kleen's historical deferred revenue balance at December 28, 2012. The revenue amounts of the five reportable segments for the three months ended March 31, 2013 exclude such adjustments to maintain comparability with future operating results and reflect how the Company manages the business.

The following table reconciles third party revenues to direct revenues for the three months ended March 31, 2013 and 2012 (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 customer revenues from other segments.

	For the Three Months Ended March 31, 2013
	Technical Services		Oil Re-refining and Recycling			SK Environmental Services		Industrial and Field Services			Oil and Gas Field Services			Corporate Items			Totals
Third party revenues	$	233,939	$	146,931		$	152,955	$	221,418		$	116,696		$	(9,776	)	$	862,163
Intersegment revenues, net	24,419		(56,561		)	41,405		(13,356		)	4,093			—			—
Corporate Items, net	852		—			84		138			(151		)	(923		)	—
Direct revenues	$	259,210	$	90,370		$	194,444	$	208,200		$	120,638		$	(10,699	)	$	862,163

	For the Three Months Ended March 31, 2012
	Technical Services		Oil Re-refining and Recycling		SK Environmental Services		Industrial and Field Services			Oil and Gas Field Services			Corporate Items			Totals
Third party revenues	$	221,637	$	—	$	—	$	202,779		$	146,905		$	701		$	572,022
Intersegment revenues, net	9,067		—		—		(11,221		)	2,154			—			—
Corporate Items, net	492		—		—		12			(231		)	(273		)	—
Direct revenues	$	231,196	$	—	$	—	$	191,570		$	148,828		$	428		$	572,022

The following table presents information used by management by reportable segment (in thousands). The Company does not allocate interest expense, income taxes, depreciation, amortization, accretion of environmental liabilities, pre-tax, non-cash acquisition accounting adjustments, and other (income) expense, to its segments.

	For the Three Months Ended
	March 31,
	2013			2012
Adjusted EBITDA:
Technical Services	$	60,045		$	51,911
Oil Re-refining and Recycling	15,312			—
SK Environmental Services	27,040			—
Industrial and Field Services	36,346			34,078
Oil and Gas Field Services	27,551			40,196
Corporate Items	(55,066		)	(25,237		)
Total	$	111,228		$	100,948
Reconciliation to Consolidated Statements of Income:
Pre-tax, non-cash acquisition accounting adjustments	$	13,559		$	—
Accretion of environmental liabilities	2,835			2,416
Depreciation and amortization	60,006			36,831
Income from operations	34,828			61,701
Other (income) expense	(525		)	299
Interest expense, net of interest income	19,873			11,272
Income before provision for income taxes	$	15,480		$	50,130

The following table presents assets by reportable segment and in the aggregate (in thousands):

	March 31, 2013		December 31, 2012
Property, plant and equipment, net
Technical Services	$	389,594	$	402,260
Oil Re-refining and Recycling	223,187		224,289
SK Environmental Services	203,671		195,172
Industrial and Field Services	387,502		371,335
Oil and Gas Field Services	251,126		257,985
Corporate Items	94,726		80,722
Total property, plant and equipment, net	$	1,549,806	$	1,531,763
Intangible assets:
Technical Services
Goodwill	$	47,929	$	48,157
Permits and other intangibles, net	84,514		85,842
Total Technical Services	132,443		133,999
Oil Re-refining and Recycling
Goodwill	206,095		215,704
Permits and other intangibles, net	221,783		222,182
Total Oil Re-refining and Recycling	427,878		437,886
SK Environmental Services
Goodwill	141,809		148,422
Permits and other intangibles, net	190,130		190,472
Total SK Environmental Services	331,939		338,894
Industrial and Field Services
Goodwill	137,564		141,726
Permits and other intangibles, net	39,535		41,143
Total Industrial and Field Services	177,099		182,869
Oil and Gas Field Services
Goodwill	39,009		39,762
Permits and other intangibles, net	30,948		33,178
Total Oil and Gas Field Services	69,957		72,940
Total	$	1,139,316	$	1,166,588

The following table presents total assets by reportable segment (in thousands):

	March 31, 2013		December 31, 2012
Technical Services	$	700,279	$	714,777
Oil Re-refining and Recycling	782,069		797,650
SK Environmental Services	663,335		647,746
Industrial and Field Services	612,650		607,654
Oil and Gas Field Services	331,758		348,771
Corporate Items	713,287		709,208
Total	$	3,803,378	$	3,825,806

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

	March 31, 2013		December 31, 2012
United States	$	2,540,639	$	2,564,609
Canada	1,260,024		1,260,421
Other foreign	2,715		776
Total	$	3,803,378	$	3,825,806