SEGMENT REPORTING

9 Months Ended

Sep. 30, 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 are loss on early extinguishment of debt, other income (expense) 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 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 nine months ended September 30, 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 nine months ended September 30, 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 and nine months ended September 30, 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 September 30, 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	$	269,465	$	151,565		$	150,535	$	227,754		$	107,627		$	589		$	907,535
Intersegment revenues, net	35,406		(64,918		)	36,516		(7,322		)	318			—			—
Corporate Items, net	964		—			—		73			(114		)	(923		)	—
Direct revenues	$	305,835	$	86,647		$	187,051	$	220,505		$	107,831		$	(334	)	$	907,535

	For the Three Months Ended September 30, 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	$	247,355	$	—	$	—	$	203,371		$	82,812		$	268		$	533,806
Intersegment revenues, net	6,951		—		—		(8,877		)	1,926			—			—
Corporate Items, net	665		—		—		100			(98		)	(667		)	—
Direct revenues	$	254,971	$	—	$	—	$	194,594		$	84,640		$	(399	)	$	533,806

	For the Nine Months Ended September 30, 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	$	759,666	$	438,191		$	453,325	$	693,667		$	294,183		$	(8,806	)	$	2,630,226
Intersegment revenues, net	85,614		(186,053		)	126,441		(32,316		)	6,314			—			—
Corporate Items, net	3,155		—			84		184			(314		)	(3,109		)	—
Direct revenues	$	848,435	$	252,138		$	579,850	$	661,535		$	300,183		$	(11,915	)	$	2,630,226

	For the Nine Months Ended September 30, 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	$	712,313	$	—	$	—	$	608,768		$	306,566		$	1,299		$	1,628,946
Intersegment revenues, net	24,235		—		—		(31,246		)	7,011			—			—
Corporate Items, net	1,805		—		—		48			(391		)	(1,462		)	—
Direct revenues	$	738,353	$	—	$	—	$	577,570		$	313,186		$	(163	)	$	1,628,946

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						For the Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Adjusted EBITDA:
Technical Services	$	78,849		$	68,241		$	208,284		$	188,673
Oil Re-refining and Recycling	18,892			—			46,861			—
SK Environmental Services	22,951			—			84,162			—
Industrial and Field Services	48,096			43,278			138,638			117,914
Oil and Gas Field Services	20,854			14,132			52,372			62,299
Corporate Items	(43,690		)	(25,124		)	(149,547		)	(78,710		)
Total	$	145,952		$	100,527		$	380,770		$	290,176
Reconciliation to Consolidated Statements of Income:
Pre-tax, non-cash acquisition accounting adjustments	$	—		$	—		$	13,559		$	—
Accretion of environmental liabilities	2,914			2,488			8,628			7,409
Depreciation and amortization	69,430			41,300			196,904			116,794
Income from operations	73,608			56,739			161,679			165,973
Other expense (income)	150			91			(2,030		)	465
Loss on early extinguishment of debt	—			26,385			—			26,385
Interest expense, net of interest income	19,326			11,596			58,784			33,836
Income before provision for income taxes	$	54,132		$	18,667		$	104,925		$	105,287

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

	September 30, 2013		December 31, 2012
Property, plant and equipment, net
Technical Services	$	398,778	$	402,260
Oil Re-refining and Recycling	262,745		224,289
SK Environmental Services	193,760		195,172
Industrial and Field Services	410,776		371,335
Oil and Gas Field Services	240,863		257,985
Corporate Items	108,505		80,722
Total property, plant and equipment, net	$	1,615,427	$	1,531,763
Intangible assets:
Technical Services
Goodwill	$	47,917	$	48,157
Permits and other intangibles, net	81,689		85,842
Total Technical Services	129,606		133,999
Oil Re-refining and Recycling
Goodwill	215,816		215,704
Permits and other intangibles, net	233,259		222,182
Total Oil Re-refining and Recycling	449,075		437,886
SK Environmental Services
Goodwill	146,956		148,422
Permits and other intangibles, net	186,043		190,472
Total SK Environmental Services	332,999		338,894
Industrial and Field Services
Goodwill	140,927		141,726
Permits and other intangibles, net	36,854		41,143
Total Industrial and Field Services	177,781		182,869
Oil and Gas Field Services
Goodwill	38,536		39,762
Permits and other intangibles, net	29,931		33,178
Total Oil and Gas Field Services	68,467		72,940
Total	$	1,157,928	$	1,166,588

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

	September 30, 2013		December 31, 2012
Technical Services	$	699,713	$	714,777
Oil Re-refining and Recycling	833,336		797,650
SK Environmental Services	642,557		647,746
Industrial and Field Services	645,183		607,654
Oil and Gas Field Services	310,481		348,771
Corporate Items	825,582		709,208
Total	$	3,956,852	$	3,825,806

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

	September 30, 2013		December 31, 2012
United States	$	2,665,328	$	2,564,609
Canada	1,287,090		1,260,421
Other foreign	4,434		776
Total	$	3,956,852	$	3,825,806