Heritage-Crystal Clean (HCCI) 10-Q 28 Jul 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 18, 2016	Jul. 25, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Heritage-Crystal Clean, Inc.
Entity Central Index Key	1,403,431
Current Fiscal Year End Date	--01-02
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 18, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		22,407,811

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 18, 2016	Jan. 02, 2016
Current Assets:
Cash and cash equivalents	$ 25,325	$ 23,608
Accounts receivable - net	43,487	41,592
Inventory - net	21,553	24,774
Other current assets	6,578	4,810
Total Current Assets	96,943	94,784
Property, plant and equipment - net	130,997	131,365
Equipment at customers - net	23,148	23,172
Software and intangible assets - net	21,539	22,202
Goodwill	31,511	30,325
Total Assets	304,138	301,848
Current Liabilities:
Accounts payable	25,116	25,129
Current maturities of long-term debt	6,659	6,700
Accrued salaries, wages, and benefits	4,775	4,330
Taxes payable	7,223	6,735
Other current liabilities	5,310	3,617
Total Current Liabilities	49,083	46,511
Long term debt, less current maturities	61,426	62,778
Deferred income taxes	2,843	2,726
Total Liabilities	113,352	112,015
STOCKHOLDERS' EQUITY:
Common stock - 26,000,000 shares authorized at $0.01 par value, 22,259,042 and 22,213,364 shares issued and outstanding at June 18, 2016 and January 2, 2016, respectively	223	222
Additional paid-in capital	183,525	182,558
Retained earnings	6,449	6,385
Total Heritage-Crystal Clean, Inc. Stockholders' Equity	190,197	189,165
Noncontrolling interest	589	668
Total Equity	190,786	189,833
Total Liabilities and Stockholders' Equity	$ 304,138	$ 301,848

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 18, 2016	Jan. 02, 2016
Statement of Financial Position [Abstract]
Common stock, shares authorized	26,000,000	26,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued	22,259,042	22,213,364
Common stock, shares outstanding	22,259,042	22,213,364

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2016	Jun. 20, 2015	Jun. 18, 2016	Jun. 20, 2015
Revenues
Product revenues	$ 24,695	$ 32,223	$ 48,399	$ 66,620
Service revenues	55,857	50,718	110,606	100,357
Total revenues	80,552	82,941	159,005	166,977
Operating expenses
Operating costs	61,711	64,363	125,959	134,077
Selling, general, and administrative expenses	11,521	10,615	23,729	21,681
Depreciation and amortization	4,118	4,298	8,246	8,631
Other (income) - net	(142)	(154)	(201)	(253)
Operating income	3,344	3,819	1,272	2,841
Interest expense – net	451	408	969	962
Income before income taxes	2,893	3,411	303	1,879
Provision for income taxes	1,062	1,413	197	781
Net income	1,831	1,998	106	1,098
Income attributable to noncontrolling interest	0	28	42	69
Net income attributable to Heritage-Crystal Clean, Inc. common stockholders	$ 1,831	$ 1,970	$ 64	$ 1,029
Net income per share: basic (in dollars per share)	$ 0.08	$ 0.09	$ 0	$ 0.05
Net income per share: diluted (in dollars per share)	$ 0.08	$ 0.09	$ 0	$ 0.05
Number of weighted average shares outstanding: basic (in shares)	22,246	22,138	22,236	22,129
Number of weighted average shares outstanding: diluted (in shares)	22,419	22,403	22,392	22,374

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 6 months ended Jun. 18, 2016 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total Heritage-Crystal Clean, Inc. Stockholders' Equity [Member]	Noncontrolling Interest [Member]
Beginning balance (in shares) at Jan. 02, 2016	22,213,364	22,213,364
Beginning balance at Jan. 02, 2016	$ 189,833	$ 222	$ 182,558	$ 6,385	$ 189,165	$ 668
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	106			64	64	42
Distribution	(121)					(121)
Issuance of common stock – ESPP (in shares)		23,040
Issuance of common stock – ESPP	222		222		222
Share-based compensation (in shares)		22,638
Share-based compensation	$ 746	$ 1	745		746
Ending balance (in shares) at Jun. 18, 2016	22,259,042	22,259,042
Ending balance at Jun. 18, 2016	$ 190,786	$ 223	$ 183,525	$ 6,449	$ 190,197	$ 589

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 18, 2016	Jun. 20, 2015
Cash flows from Operating Activities:
Net income	$ 106	$ 1,098
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	8,246	8,631
Non-cash inventory impairment	1,651	4,415
Bad debt provision	361	721
Share-based compensation	746	590
Deferred taxes	117	647
Amortization of deferred gain on lease conversion	(189)	(176)
Other, net	324	6
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(1,895)	1,483
Decrease (increase) in inventory	1,598	(2,191)
(Increase) decrease in other current assets	(1,768)	6,149
Increase (decrease) increase in accounts payable	2,620	(8,237)
Increase (decrease) in accrued expenses	2,474	(3,720)
Cash provided by operating activities	14,391	9,416
Cash flows from Investing Activities:
Capital expenditures	(8,671)	(10,158)
Business acquisitions, net of cash acquired	(2,400)	0
Cash used in investing activities	(11,071)	(10,158)
Cash flows from Financing Activities:
Payments on term loan	(1,704)	(1,152)
Payments of notes payable	0	(158)
Payments of contingent consideration	0	(96)
Proceeds from the issuance of common stock	222	222
Distributions to noncontrolling interest	(121)	(240)
Cash used in financing activities	(1,603)	(1,424)
Net increase (decrease) in cash and cash equivalents	1,717	(2,166)
Cash and cash equivalents, beginning of period	23,608	21,555
Cash and cash equivalents, end of period	25,325	19,389
Supplemental disclosure of cash flow information:
Income taxes paid	242	61
Cash paid for interest, net of capitalized interest of $ — and $304, respectively	956	724
Supplemental disclosure of non-cash information:
Payables for construction in progress	$ 284	$ 222

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 20, 2015	Jun. 18, 2016	Jun. 20, 2015
Statement of Cash Flows [Abstract]
Capitalized interest	$ 200	$ 0	$ 304

Organization and Nature of Oper

Organization and Nature of Operations	6 Months Ended
	Jun. 18, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of Operations	ORGANIZATION AND NATURE OF OPERATIONS Heritage-Crystal Clean, Inc., a Delaware corporation and its subsidiaries (collectively the “Company”), provides parts cleaning and hazardous and non-hazardous waste services primarily to small and mid-sized customers in both the manufacturing and vehicle maintenance sectors. The Company's service programs include parts cleaning, containerized waste management, used oil collection, vacuum truck services, waste antifreeze collection and recycling, and field services. The Company also owns and operates a used oil re-refinery through which it recycles used oil into high quality base oil for lubricants as well as other re-refinery byproducts. The Company also has multiple locations where it dehydrates used oil to be sold as recycled fuel oil. The Company's locations are in the United States and Ontario, Canada. The Company conducts its primary business operations through Heritage-Crystal Clean, LLC, its wholly owned subsidiary, and all intercompany balances have been eliminated in consolidation. The Company’s fiscal year ends on the Saturday closest to December 31. The most recent fiscal year ended on January 2, 2016 . Each of the Company's first three fiscal quarters consists of twelve weeks while the last fiscal quarter consists of sixteen or seventeen weeks. In the Company's Environmental Services segment, product revenues include sales of solvent, machines, antifreeze, and accessories; and service revenues include drum waste removal services, servicing of parts cleaning machines, vacuum truck services, field services, and other services. In the Company's Oil Business segment, product revenues include sales of re-refined base oil, byproducts, recycled fuel oil, and used oil; and service revenues include revenues from collecting used oil, collecting and recycling of oil filters and collecting and disposing of waste water. Due to the Company's integrated business model, it is impracticable to separately present costs of tangible products and costs of services.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 18, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company's significant accounting policies are described in Note 2, "Summary of Significant Accounting Policies," in the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2016. There have been no material changes in these policies or their application. Recently Issued Accounting Pronouncements Accounting standards not yet adopted Standard Issuance Date Description Our Effective Date Effect on the Financial Statements ASU 2016-09 Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. (Topic 718) March 2016 This update addresses the simplification of accounting for employee share-based payment transactions as it pertains to income taxes, the classification of awards as equity or liabilities, accounting for forfeitures, statutory tax withholding requirements, and certain classifications on the statement of cash flows. Early adoption is permitted. January 1, 2017 The Company is currently evaluating the effect that implementation of this update will have on its consolidated financial position and results of operations. ASU 2016-02 Leases (Topic 842) February 2016 This update was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Early application of the amendments in this update is permitted for all entities. January 4, 2019 The Company is currently evaluating the effect that implementation of this update will have on its consolidated financial position and results of operations. ASU 2014-15 Presentation of Financial Statements - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. (Subtopic 205-40) August 2014 This update provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Early adoption is permitted. December 31, 2016 The adoption of ASU 2014-15 is not expected to have an impact on the Company’s consolidated financial statements. ASU 2014-09 Revenue from Contracts with Customers, and ASU 2015-14 Revenue from Contracts with Customers: Deferral of the Effective Date (Topic 606) May 2014 The underlying principle of this update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. Early adoption is not permitted. December 31, 2017 This update could impact the timing and amounts of revenue recognized. The Company is currently evaluating the effect that implementation of this update will have on its consolidated financial position and results of operations upon adoption. Recently issued accounting standards adopted Standard Issuance Date Description Effective Date Effect on the Financial Statements 2015-03 Interest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, and 2015-15 Interest—Imputation of Interest (Subtopic 835-30) April 2015 These updates require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt, and allows for the presentation of debt issuance costs as an asset regardless of whether or not there is an outstanding balance on the line-of-credit arrangement. January 3, 2016 The adoption of ASU 2015-03 resulted in the reclassification of $1.4 million of unamortized debt issuance costs from "Other current assets" to "Term loan, less current maturities" as of January 2, 2016.

Business Combinations

Business Combinations	6 Months Ended
	Jun. 18, 2016
Business Combinations [Abstract]
Business Combinations	BUSINESS COMBINATIONS On March 24, 2016, the Company purchased the assets of Phoenix Environmental Services, Inc. and Pipeline Video and Cleaning North Corporation (together "Phoenix Environmental"). The purchase price for the acquisition was $2.7 million , including $0.3 million placed into escrow and including contingent consideration of up to $0.3 million based on subsequent business performance. The Company is continuing to evaluate the purchase price allocations. Preliminary purchase price allocations are tentative and subject to revision as the Company finalizes appraisals and other analyses. Measurement period adjustments reflect new information obtained about facts and circumstances that existed as of the acquisition date. Final determination of the fair values may result in further adjustments to the values presented. The Company believes that the preliminary allocations provide a reasonable basis for estimating the fair values of assets acquired based on the information available. The Phoenix Environmental purchase price allocation is preliminary as the Company is still in the process of obtaining information to finalize the purchase price, net cash paid, and estimated fair values of the assets presented below. The Company expects to finalize the purchase price allocation no later than one year from the purchase date. The following table summarizes the estimated fair values of the assets acquired related to the acquisition: (Thousands) Phoenix Environmental Services Accounts receivable $ 361 Inventory 27 Property, plant, & equipment 374 Equipment at customers 55 Intangible assets 710 Goodwill (a) 1,173 Total purchase price 2,700 Less: contingent consideration (300 ) Net cash paid $ 2,400 ______________ (a) Goodwill recognized from the acquisition of Phoenix Environmental represents the excess of the fair value of the net assets acquired over the purchase price, and is based upon the Company's expectations of synergies from combining the operations of Phoenix Environmental and the Company, and the value of intangible assets that are not separately recognized, such as the assembled workforce. All of the goodwill was assigned to the Environmental Services reporting unit. All goodwill is expected to be deductible for income tax purposes. Unaudited Pro Forma Financial Information The pro forma financial information in the table below presents the combined results of the Company as if the Phoenix Environmental acquisition that occurred in fiscal 2016 had occurred January 3, 2015. The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transactions been in effect for the period presented. Second Quarter Ended, Second Quarter Ended (In thousands, except per share data) June 18, 2016 June 20, 2015 Total revenues $ 80,552 $ 83,670 Net income 1,831 2,023 Income per share Basic $ 0.08 $ 0.09 Diluted 0.08 0.09 First Half Ended, First Half Ended, (In thousands, except per share data) June 18, 2016 June 20, 2015 Total revenues $ 159,709 $ 168,480 Net income 43 1,209 Income per share Basic $ — $ 0.05 Diluted — 0.05

Accounts Receivable

Accounts Receivable	6 Months Ended
	Jun. 18, 2016
Accounts Receivable, Net [Abstract]
Accounts Receivable	ACCOUNTS RECEIVABLE Accounts receivable consisted of the following: (Thousands) June 18, January 2, Trade $ 41,164 $ 38,379 Less: allowance for doubtful accounts 2,227 2,207 Trade - net 38,937 36,172 Related parties 972 1,250 Other 3,578 4,170 Total accounts receivable - net $ 43,487 $ 41,592 The following table provides the changes in the Company’s allowance for doubtful accounts for the first half ended June 18, 2016 and the fiscal year ended January 2, 2016 : For the First Half Ended, For the Fiscal Year Ended, (Thousands) June 18, January 2, Balance at beginning of period $ 2,207 $ 3,927 Balance acquired from FCC Environmental, including measurement period adjustments — 2,701 Provision for bad debts 361 1,009 Accounts written off, net of recoveries (341 ) (5,430 ) Balance at end of period $ 2,227 $ 2,207

Inventory

Inventory	6 Months Ended
	Jun. 18, 2016
Inventory Disclosure [Abstract]
Inventory	INVENTORY The carrying value of inventory consisted of the following: (Thousands) June 18, January 2, Used oil and processed oil $ 7,918 $ 9,045 Solvents and solutions 4,658 6,285 Machines 3,408 3,827 Drums and supplies 4,222 4,226 Other 1,678 1,681 Total inventory 21,884 25,064 Less: machine refurbishing reserve 331 290 Total inventory - net $ 21,553 $ 24,774 Inventory consists primarily of used oil, processed oil, solvents and solutions, new and refurbished parts cleaning machines, drums and supplies, and other items. Inventories are valued at the lower of first-in, first-out (FIFO) cost or market, net of any reserves for excess, obsolete, or unsalable inventory. The Company continually monitors its inventory levels at each of its locations and evaluates inventories for excess or slow-moving items. If circumstances indicate the cost of inventories exceed their recoverable value, inventories are reduced to net realizable value. The Company wrote down the value of inventory by $0.2 million in the second quarter of 2016, compared to a write down of $1.8 million in the second quarter of 2015. Total inventory write-downs for the first half of fiscal 2016 and the first half of fiscal 2015 were $1.7 million and $4.4 million , respectively. Write-downs in the second quarter of 2016 pertain to solvents and solutions inventory. Write-downs in 2015 and the first quarter of 2016 pertain to used oil and processed oil inventory as well as solvents and solutions inventory.

Property, Plant, and Equipment

Property, Plant, and Equipment	6 Months Ended
	Jun. 18, 2016
Property, Plant and Equipment [Abstract]
Property, Plant, and Equipment	PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment consisted of the following: (Thousands) June 18, January 2, Machinery, vehicles, and equipment (a) $ 77,024 $ 75,129 Buildings and storage tanks 69,569 69,317 Land 9,308 9,295 Leasehold improvements (a) 4,585 4,523 Construction in progress 6,546 4,474 Assets held for sale 148 189 Total property, plant and equipment 167,180 162,927 Less: accumulated depreciation (36,183 ) (31,562 ) Property, plant and equipment - net $ 130,997 $ 131,365 (Thousands) June 18, January 2, Equipment at customers (a) $ 61,233 $ 59,216 Less: accumulated depreciation (38,085 ) (36,044 ) Equipment at customers - net $ 23,148 $ 23,172 _______________ (a) Numbers include preliminary fair values of assets acquired in the acquisition described in Note 3 that may be adjusted as additional information becomes known. Depreciation expense for the second quarters ended June 18, 2016 and June 20, 2015 was $3.4 million and $3.6 million , respectively. Depreciation expense for the first half ended June 18, 2016 and the first half ended June 20, 2015 was $6.7 million and $7.4 million , respectively.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 18, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is measured as a residual amount as of the acquisition date, which in most cases results in measuring goodwill as an excess of the purchase consideration transferred plus the fair value of any noncontrolling interest in the acquiree over the fair value of the net assets acquired, including any contingent consideration. The Company tests goodwill for impairment annually in the fourth quarter and in interim periods if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company's determination of fair value requires certain assumptions and estimates, such as margin expectations, market conditions, growth expectations, expected changes in working capital, etc., regarding expected future profitability and expected future cash flows. The Company tests goodwill for impairment at each of its two reporting units, Environmental Services and Oil Business, and the Company does not aggregate reporting units for purposes of impairment testing. The following table shows changes to our goodwill balances by segment from January 2, 2016, to June 18, 2016: (Thousands) Oil Business Environmental Services Total Balance at January 2, 2016 $ — $ 30,325 $ 30,325 Phoenix Environmental acquisition — 1,173 1,173 Currency translation adjustments — 13 13 Balance at June 18, 2016 $ — $ 31,511 $ 31,511 Following is a summary of software and other intangible assets: June 18, 2016 January 2, 2016 (Thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 22,933 $ 5,408 $ 17,525 $ 22,202 $ 4,369 $ 17,833 Software 4,573 3,500 1,073 4,455 3,382 1,073 Non-compete agreements 2,940 1,936 1,004 2,930 1,713 1,217 Patents, formulae, and licenses 1,769 541 1,228 1,769 510 1,259 Other 1,349 640 709 1,354 534 820 Total software and intangible assets $ 33,564 $ 12,025 $ 21,539 $ 32,710 $ 10,508 $ 22,202 Amortization expense was $0.7 million for the second quarter ended June 18, 2016 and $0.7 million for second quarter ended June 20, 2015 . Amortization expense was $1.5 million for the first half ended June 18, 2016 and $1.2 million for first half ended June 20, 2015 . The weighted average useful lives of software; customer & supplier relationships; patents, formulae, and licenses; non-compete agreements, and other intangibles were 9 years, 11 years, 15 years, 5 years, and 6 years, respectively. The expected amortization expense for the remainder of fiscal 2016 and for fiscal years 2017, 2018, 2019, and 2020 is $1.8 million , $3.2 million , $2.9 million , $2.6 million , and $2.5 million , respectively. The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, disposal of intangible assets, accelerated amortization of intangible assets, and other events.

Debt And Financing Arrangements

Debt And Financing Arrangements	6 Months Ended
	Jun. 18, 2016
Debt Disclosure [Abstract]
Debt And Financing Arrangements	DEBT AND FINANCING ARRANGEMENTS Bank Credit Facility On October 16, 2014, the Company amended its Amended and Restated Credit Agreement ("Credit Agreement", or "Credit Facility"). The Credit Agreement, as amended, allows for up to $140.0 million in borrowings. As of June 18, 2016 and January 2, 2016 , the Company's total borrowings were $69.2 million and $70.9 million , respectively, under the term loan which has a maturity date of February 5, 2018 . The remaining portion of the Credit Facility is a revolving loan which expires on February 5, 2018 . There were no amounts outstanding under the revolver at June 18, 2016 and January 2, 2016 . Unamortized debt issuance costs were $1.1 million and $1.4 million as of June 18, 2016 and January 2, 2016, respectively. During the second quarter of fiscal 2016 , the Company recorded interest of $0.5 million on the term loan and capitalized less than $0.1 million for various capital projects. During the first half of fiscal 2016, the Company recorded interest of $1.0 million on the term loan, of which less than $0.1 million was capitalized for various capital projects. During the second quarter of fiscal 2015, the Company recorded interest of $0.4 million on the term loan and capitalized $0.2 million for various capital projects. During the first half of fiscal 2015, the Company recorded interest of $0.8 million on the term loan and capitalized $0.3 million for various capital projects. As of June 18, 2016 and January 2, 2016 , the Company was in compliance with all covenants under the Credit Agreement. As of June 18, 2016 and January 2, 2016 , the Company had $3.0 million and $4.4 million of standby letters of credit issued, respectively, and $19.8 million and $34.5 million was available for borrowing under the Credit Facility. The actual amount available under the revolving loan portion of the Credit Agreement is limited by the Company's total leverage ratio. The Company's weighted average interest rate for all debt as of June 18, 2016 and June 20, 2015 was 3.2% and 3.2% , respectively.

Segment Information

Segment Information	6 Months Ended
	Jun. 18, 2016
Segment Reporting [Abstract]
Segment Information	SEGMENT INFORMATION The Company reports in two segments: "Environmental Services" and "Oil Business." The Environmental Services segment consists of the Company's parts cleaning, containerized waste management, vacuum truck service, antifreeze recycling activities, and field services. The Oil Business segment consists of the Company's used oil collection, used oil re-refining activities, and the dehydration of used oil to be sold as recycled fuel oil. No single customer in either segment accounted for more than 10.0% of consolidated revenues in any of the periods presented. There were no intersegment revenues. Operating segment results for the second quarter s and first halves ended June 18, 2016 , and June 20, 2015 were as follows: Second Quarter Ended, June 18, 2016 (Thousands) Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 5,106 $ 19,589 $ — $ 24,695 Service revenues 47,331 8,526 — 55,857 Total revenues $ 52,437 $ 28,115 $ — $ 80,552 Operating expenses Operating costs 35,631 26,080 — 61,711 Operating depreciation and amortization 1,710 1,591 — 3,301 Profit before corporate selling, general, and administrative expenses $ 15,096 $ 444 $ — $ 15,540 Selling, general, and administrative expenses 11,521 11,521 Depreciation and amortization from SG&A 817 817 Total selling, general, and administrative expenses $ 12,338 $ 12,338 Other (income) - net (142) (142) Operating income 3,344 Interest expense – net 451 451 Income before income taxes $ 2,893 Second Quarter Ended, June 20, 2015 (Thousands) Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 5,370 $ 26,853 $ — $ 32,223 Service revenues 47,600 3,118 — 50,718 Total revenues $ 52,970 $ 29,971 $ — $ 82,941 Operating expenses Operating costs 35,591 28,772 — 64,363 Operating depreciation and amortization 1,671 1,840 — 3,511 Profit (loss) before corporate selling, general, and administrative expenses $ 15,708 $ (641 ) $ — $ 15,067 Selling, general, and administrative expenses 10,615 10,615 Depreciation and amortization from SG&A 787 787 Total selling, general, and administrative expenses $ 11,402 $ 11,402 Other (income) - net (154) (154) Operating income 3,819 Interest expense – net 408 408 Income before income taxes $ 3,411 First Half Ended, June 18, 2016 (Thousands) Environmental Services Oil Business Corporate and Eliminations Consolidated Revenues Product revenues $ 10,135 $ 38,264 $ — $ 48,399 Service revenues 94,663 15,943 $ — 110,606 Total revenues $ 104,798 $ 54,207 $ — $ 159,005 Operating expenses Operating costs 72,436 53,523 — 125,959 Operating depreciation and amortization 3,424 3,171 — 6,595 Profit (loss) before corporate selling, general, and administrative expenses $ 28,938 $ (2,487 ) $ — $ 26,451 Selling, general, and administrative expenses 23,729 23,729 Depreciation and amortization from SG&A 1,651 1,651 Total selling, general, and administrative expenses $ 25,380 $ 25,380 Other (income) - net (201 ) (201 ) Operating income 1,272 Interest expense – net 969 969 Income before income taxes $ 303 First Half Ended, June 20, 2015 (Thousands) Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 10,710 $ 55,910 $ — $ 66,620 Service revenues 95,145 5,212 — 100,357 Total revenues $ 105,855 $ 61,122 $ — $ 166,977 Operating expenses Operating costs 74,304 59,773 — 134,077 Operating depreciation and amortization 3,398 3,704 — 7,102 Profit (loss) before corporate selling, general, and administrative expenses $ 28,153 $ (2,355 ) $ — $ 25,798 Selling, general, and administrative expenses 21,681 21,681 Depreciation and amortization from SG&A 1,529 1,529 Total selling, general, and administrative expenses $ 23,210 $ 23,210 Other (income) - net (253) (253) Operating income 2,841 Interest expense – net 962 962 Income before income taxes $ 1,879 Total assets by segment as of June 18, 2016 and January 2, 2016 were as follows: (Thousands) June 18, 2016 January 2, 2016 Total Assets: Environmental Services $ 129,740 $ 133,718 Oil Business 135,226 132,556 Unallocated Corporate Assets 39,172 35,574 Total $ 304,138 $ 301,848 Segment assets for the Environmental Services and Oil Business segments consist of property, plant, and equipment, intangible assets, accounts receivable, goodwill, and inventories. Assets for the corporate unallocated amounts consist of property, plant, and equipment used at the corporate headquarters, as well as cash and net deferred tax assets.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 18, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES The Company may enter into purchase obligations with certain vendors. They represent expected payments to third party service providers and other commitments entered into during the normal course of our business. These purchase obligations are generally cancelable with or without notice, without penalty, although certain vendor agreements provide for cancellation fees or penalties depending on the terms of the contract. The Company has purchase obligations in the form of open purchase orders of $8.0 million as of June 18, 2016 , and $9.8 million as of January 2, 2016, primarily for used oil, solvent, machine purchases, disposal and transportation expenses, and capital expenditures. The Company may be subject to investigations, claims or lawsuits as a result of operating its business, including matters governed by environmental laws and regulations. The Company may also be subject to tax audits in a variety of jurisdictions. When claims are asserted, the Company evaluates the likelihood that a loss will occur and records a liability for those instances when the likelihood is deemed probable and the exposure is reasonably estimable. The Company carries insurance at levels it believes are adequate to cover loss contingencies based on historical claims activity. When the potential loss exposure is limited to the insurance deductible and the likelihood of loss is determined to be probable, the Company accrues for the amount of the required deductible, unless a lower amount of exposure is estimated. As of June 18, 2016 and January 2, 2016 , the Company had accrued $5.5 million and $6.0 million related to loss contingencies and other contingent liabilities, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 18, 2016
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES The Company deducted for federal income tax purposes accelerated "bonus" depreciation on the majority of its capital expenditures for assets placed in service in fiscal 2011 through fiscal 2015. Therefore, the Company recorded a noncurrent deferred tax liability to reflect difference between the book basis and the tax basis of those assets. In addition, as a result of the federal bonus depreciation, the Company recorded a Net Operating Loss ("NOL") of $44.7 million , which will begin to expire in 2031. The balance remaining on the NOL, which is primarily the result of bonus depreciation, as of June 18, 2016 was $50.3 million , and the remaining deferred tax asset related to the Company's state and federal NOL was a tax effected balance of $18.9 million . The Company recognizes windfall tax benefits associated with the exercise of stock options directly to stockholders' equity only when realized. Consequently, deferred tax assets are not recognized for NOLs resulting from windfall tax benefits. At June 18, 2016 , deferred tax assets do not include $2.5 million of excess tax benefits from share-based compensation. The Company's effective tax rate for the second quarter of fiscal 2016 was 36.7% compared to 41.4% in the second quarter of fiscal 2015 . The rate difference is principally attributable to the differing treatment for financial reporting and income tax reporting for certain expenditures. These expenditures are shown net of the anticipated reimbursement from an unrelated third party for financial reporting purposes, whereas for income tax purposes the expenditures are recorded on a gross basis. The Company's effective tax rate for the first half of fiscal 2016 was 65.0% compared to 41.6% in the first half of fiscal 2015. The rate increase is primarily attributed to certain state income taxes which are computed on a tax base that reflects substantial modifications to federal taxable income, and that has created comparatively high tax expense when compared to relatively low year-to-date pre-tax income in the first half of 2016. The Company establishes reserves when it is more likely than not that the Company will not realize the full tax benefit of a position. The Company had a reserve of $2.5 million for uncertain tax positions as of June 18, 2016 and January 2, 2016 . The gross unrecognized tax benefits would, if recognized, decrease the Company's effective tax rate.

Share-based Compensation

Share-based Compensation	6 Months Ended
	Jun. 18, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation	SHARE-BASED COMPENSATION The aggregate number of shares of common stock which may be issued under the Company’s 2008 Omnibus Plan ("Plan") is 1,902,077 plus any common stock that becomes available for issuance pursuant to the reusage provision of the Plan. As of June 18, 2016 , the number of shares available for issuance under the Plan was 553,427 shares. Stock Option Awards A summary of stock option activity under this Plan is as follows: Outstanding Stock Options Number of Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value as of Date Listed (in thousands) Options outstanding at January 2, 2016 534,428 $ 10.97 2.34 $ 224 Exercised — — Options outstanding at June 18, 2016 534,428 $ 10.97 1.88 $ 1,093 Restricted Stock Compensation/Awards Annually, the Company grants restricted shares to its Board of Directors. The shares become fully vested one year from their grant date. The fair value of each restricted stock grant is based on the closing price of the Company's stock on the date of grant. The Company amortizes the expense over the service period, which is the fiscal year in which the award is granted. On May 8, 2015, the Company granted 22,638 restricted shares for service in fiscal 2015 , which vested in the second quarter of fiscal 2016. On May 5, 2016, the Company granted 28,674 restricted shares to the Board of Directors for service in fiscal 2016. As of June 18, 2016 , there was $0.2 million unrecognized expense associated with these grants, which will be recorded throughout fiscal 2016 . Expense related to the Board of Directors' restricted stock in both the first half of fiscal 2016 and the first half of fiscal 2015 was $0.1 million . In February 2014, the Company granted certain members of management 132,107 restricted shares based on the Company's performance in fiscal 2013. These restricted shares are subject to a graded vesting schedule over a three year period which started January 1, 2015. There was approximately $0.3 million and $0.5 million in unrecognized compensation expense remaining related to these awards as of June 18, 2016 and January 2, 2016 , respectively. In the first half of fiscal 2016 and the first half of fiscal 2015, $0.3 million and $0.2 million of compensation expense was recorded related to these awards, respectively. In February 2015, the Company granted certain members of management 38,372 restricted shares based on their services in fiscal 2014 and contingent upon continued service. The restricted shares vest over a three year period which started January 1, 2016. As of June 18, 2016 and January 2, 2016, there was approximately $0.2 million in unrecognized compensation expense remaining related to these awards. In each of the first halves of fiscal 2016 and fiscal 2015, approximately $0.1 million was recorded as compensation expense related to these awards. In January 2016, the Company granted certain members of management 42,208 restricted shares based on their services in fiscal 2015 and contingent upon the employees' continued employment with the Company. The restricted shares vest over a period of approximately three years, beginning with the grant date in January 2016 and ending with the final vesting in January 2019. As of June 18, 2016 and January 2, 2016, there was approximately $0.3 million in unrecognized compensation expense remaining related to these awards. In the first half of fiscal 2016 and fiscal 2015, approximately $0.1 million and $0.2 million was recorded as compensation expense related to these awards, respectively. The following table summarizes the restricted stock activity for the period ended June 18, 2016 : Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share Nonvested shares outstanding at January 2, 2016 91,529 $ 14.47 Granted 70,882 9.90 Vested (22,638 ) 12.59 Nonvested shares outstanding at June 18, 2016 139,773 $ 12.46 Employee Stock Purchase Plan As of June 18, 2016 , the Company had reserved 72,944 shares of common stock available for purchase under the Employee Stock Purchase Plan of 2008 . In the first half of fiscal 2016 , employees purchased 23,040 shares of the Company’s common stock with a weighted average fair market value of $10.12 per share.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 18, 2016
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The following table reconciles the number of shares outstanding for the second quarter s of fiscal 2016 and 2015 , respectively, to the number of weighted average basic shares outstanding and the number of weighted average diluted shares outstanding for the purposes of calculating basic and diluted earnings per share: Second Quarter Ended, First Half Ended, (Thousands) June 18, 2016 June 20, 2015 June 18, 2016 June 20, 2015 Net income $ 1,831 $ 1,998 $ 106 $ 1,098 Less: Income attributable to noncontrolling interest — 28 42 69 Net income attributable to Heritage-Crystal Clean, Inc. available to common stockholders $ 1,831 $ 1,970 $ 64 $ 1,029 Weighted average basic shares outstanding 22,246 22,138 22,236 22,129 Dilutive shares from share–based compensation plans 173 265 156 245 Weighted average diluted shares outstanding 22,419 22,403 22,392 22,374 Net income per share: basic $ 0.08 $ 0.09 $ — $ 0.05 Net income per share: diluted $ 0.08 $ 0.09 $ — $ 0.05

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 18, 2016
Accounting Policies [Abstract]
Fiscal Period	The Company’s fiscal year ends on the Saturday closest to December 31. The most recent fiscal year ended on January 2, 2016 . Each of the Company's first three fiscal quarters consists of twelve weeks while the last fiscal quarter consists of sixteen or seventeen weeks.
Recently Issued Accounting Pronouncements	Accounting standards not yet adopted Standard Issuance Date Description Our Effective Date Effect on the Financial Statements ASU 2016-09 Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. (Topic 718) March 2016 This update addresses the simplification of accounting for employee share-based payment transactions as it pertains to income taxes, the classification of awards as equity or liabilities, accounting for forfeitures, statutory tax withholding requirements, and certain classifications on the statement of cash flows. Early adoption is permitted. January 1, 2017 The Company is currently evaluating the effect that implementation of this update will have on its consolidated financial position and results of operations. ASU 2016-02 Leases (Topic 842) February 2016 This update was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Early application of the amendments in this update is permitted for all entities. January 4, 2019 The Company is currently evaluating the effect that implementation of this update will have on its consolidated financial position and results of operations. ASU 2014-15 Presentation of Financial Statements - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. (Subtopic 205-40) August 2014 This update provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Early adoption is permitted. December 31, 2016 The adoption of ASU 2014-15 is not expected to have an impact on the Company’s consolidated financial statements. ASU 2014-09 Revenue from Contracts with Customers, and ASU 2015-14 Revenue from Contracts with Customers: Deferral of the Effective Date (Topic 606) May 2014 The underlying principle of this update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. Early adoption is not permitted. December 31, 2017 This update could impact the timing and amounts of revenue recognized. The Company is currently evaluating the effect that implementation of this update will have on its consolidated financial position and results of operations upon adoption. Recently issued accounting standards adopted Standard Issuance Date Description Effective Date Effect on the Financial Statements 2015-03 Interest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs, and 2015-15 Interest—Imputation of Interest (Subtopic 835-30) April 2015 These updates require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt, and allows for the presentation of debt issuance costs as an asset regardless of whether or not there is an outstanding balance on the line-of-credit arrangement. January 3, 2016 The adoption of ASU 2015-03 resulted in the reclassification of $1.4 million of unamortized debt issuance costs from "Other current assets" to "Term loan, less current maturities" as of January 2, 2016.

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jun. 18, 2016
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	The following table summarizes the estimated fair values of the assets acquired related to the acquisition: (Thousands) Phoenix Environmental Services Accounts receivable $ 361 Inventory 27 Property, plant, & equipment 374 Equipment at customers 55 Intangible assets 710 Goodwill (a) 1,173 Total purchase price 2,700 Less: contingent consideration (300 ) Net cash paid $ 2,400 ______________ (a) Goodwill recognized from the acquisition of Phoenix Environmental represents the excess of the fair value of the net assets acquired over the purchase price, and is based upon the Company's expectations of synergies from combining the operations of Phoenix Environmental and the Company, and the value of intangible assets that are not separately recognized, such as the assembled workforce. All of the goodwill was assigned to the Environmental Services reporting unit. All goodwill is expected to be deductible for income tax purposes.
Schedule of Pro Forma Information	The pro forma financial information in the table below presents the combined results of the Company as if the Phoenix Environmental acquisition that occurred in fiscal 2016 had occurred January 3, 2015. The pro forma information is shown for illustrative purposes only and is not necessarily indicative of future results of operations of the Company or results of operations of the Company that would have actually occurred had the transactions been in effect for the period presented. Second Quarter Ended, Second Quarter Ended (In thousands, except per share data) June 18, 2016 June 20, 2015 Total revenues $ 80,552 $ 83,670 Net income 1,831 2,023 Income per share Basic $ 0.08 $ 0.09 Diluted 0.08 0.09 First Half Ended, First Half Ended, (In thousands, except per share data) June 18, 2016 June 20, 2015 Total revenues $ 159,709 $ 168,480 Net income 43 1,209 Income per share Basic $ — $ 0.05 Diluted — 0.05

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Jun. 18, 2016
Accounts Receivable, Net [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	Accounts receivable consisted of the following: (Thousands) June 18, January 2, Trade $ 41,164 $ 38,379 Less: allowance for doubtful accounts 2,227 2,207 Trade - net 38,937 36,172 Related parties 972 1,250 Other 3,578 4,170 Total accounts receivable - net $ 43,487 $ 41,592 The following table provides the changes in the Company’s allowance for doubtful accounts for the first half ended June 18, 2016 and the fiscal year ended January 2, 2016 : For the First Half Ended, For the Fiscal Year Ended, (Thousands) June 18, January 2, Balance at beginning of period $ 2,207 $ 3,927 Balance acquired from FCC Environmental, including measurement period adjustments — 2,701 Provision for bad debts 361 1,009 Accounts written off, net of recoveries (341 ) (5,430 ) Balance at end of period $ 2,227 $ 2,207

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 18, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	The carrying value of inventory consisted of the following: (Thousands) June 18, January 2, Used oil and processed oil $ 7,918 $ 9,045 Solvents and solutions 4,658 6,285 Machines 3,408 3,827 Drums and supplies 4,222 4,226 Other 1,678 1,681 Total inventory 21,884 25,064 Less: machine refurbishing reserve 331 290 Total inventory - net $ 21,553 $ 24,774

Property, Plant, and Equipment

Property, Plant, and Equipment (Tables)	6 Months Ended
	Jun. 18, 2016
Property, Plant and Equipment [Abstract]
Summary of Property, Plant, and Equipment	Property, plant, and equipment consisted of the following: (Thousands) June 18, January 2, Machinery, vehicles, and equipment (a) $ 77,024 $ 75,129 Buildings and storage tanks 69,569 69,317 Land 9,308 9,295 Leasehold improvements (a) 4,585 4,523 Construction in progress 6,546 4,474 Assets held for sale 148 189 Total property, plant and equipment 167,180 162,927 Less: accumulated depreciation (36,183 ) (31,562 ) Property, plant and equipment - net $ 130,997 $ 131,365 (Thousands) June 18, January 2, Equipment at customers (a) $ 61,233 $ 59,216 Less: accumulated depreciation (38,085 ) (36,044 ) Equipment at customers - net $ 23,148 $ 23,172 _______________ (a) Numbers include preliminary fair values of assets acquired in the acquisition described in Note 3 that may be adjusted as additional information becomes known.

Goodwill and Other Intangible26

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 18, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table shows changes to our goodwill balances by segment from January 2, 2016, to June 18, 2016: (Thousands) Oil Business Environmental Services Total Balance at January 2, 2016 $ — $ 30,325 $ 30,325 Phoenix Environmental acquisition — 1,173 1,173 Currency translation adjustments — 13 13 Balance at June 18, 2016 $ — $ 31,511 $ 31,511
Schedule of Intangible Assets	Following is a summary of software and other intangible assets: June 18, 2016 January 2, 2016 (Thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer & supplier relationships $ 22,933 $ 5,408 $ 17,525 $ 22,202 $ 4,369 $ 17,833 Software 4,573 3,500 1,073 4,455 3,382 1,073 Non-compete agreements 2,940 1,936 1,004 2,930 1,713 1,217 Patents, formulae, and licenses 1,769 541 1,228 1,769 510 1,259 Other 1,349 640 709 1,354 534 820 Total software and intangible assets $ 33,564 $ 12,025 $ 21,539 $ 32,710 $ 10,508 $ 22,202

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 18, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Operating segment results for the second quarter s and first halves ended June 18, 2016 , and June 20, 2015 were as follows: Second Quarter Ended, June 18, 2016 (Thousands) Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 5,106 $ 19,589 $ — $ 24,695 Service revenues 47,331 8,526 — 55,857 Total revenues $ 52,437 $ 28,115 $ — $ 80,552 Operating expenses Operating costs 35,631 26,080 — 61,711 Operating depreciation and amortization 1,710 1,591 — 3,301 Profit before corporate selling, general, and administrative expenses $ 15,096 $ 444 $ — $ 15,540 Selling, general, and administrative expenses 11,521 11,521 Depreciation and amortization from SG&A 817 817 Total selling, general, and administrative expenses $ 12,338 $ 12,338 Other (income) - net (142) (142) Operating income 3,344 Interest expense – net 451 451 Income before income taxes $ 2,893 Second Quarter Ended, June 20, 2015 (Thousands) Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 5,370 $ 26,853 $ — $ 32,223 Service revenues 47,600 3,118 — 50,718 Total revenues $ 52,970 $ 29,971 $ — $ 82,941 Operating expenses Operating costs 35,591 28,772 — 64,363 Operating depreciation and amortization 1,671 1,840 — 3,511 Profit (loss) before corporate selling, general, and administrative expenses $ 15,708 $ (641 ) $ — $ 15,067 Selling, general, and administrative expenses 10,615 10,615 Depreciation and amortization from SG&A 787 787 Total selling, general, and administrative expenses $ 11,402 $ 11,402 Other (income) - net (154) (154) Operating income 3,819 Interest expense – net 408 408 Income before income taxes $ 3,411 First Half Ended, June 18, 2016 (Thousands) Environmental Services Oil Business Corporate and Eliminations Consolidated Revenues Product revenues $ 10,135 $ 38,264 $ — $ 48,399 Service revenues 94,663 15,943 $ — 110,606 Total revenues $ 104,798 $ 54,207 $ — $ 159,005 Operating expenses Operating costs 72,436 53,523 — 125,959 Operating depreciation and amortization 3,424 3,171 — 6,595 Profit (loss) before corporate selling, general, and administrative expenses $ 28,938 $ (2,487 ) $ — $ 26,451 Selling, general, and administrative expenses 23,729 23,729 Depreciation and amortization from SG&A 1,651 1,651 Total selling, general, and administrative expenses $ 25,380 $ 25,380 Other (income) - net (201 ) (201 ) Operating income 1,272 Interest expense – net 969 969 Income before income taxes $ 303 First Half Ended, June 20, 2015 (Thousands) Environmental Services Oil Business Corporate and Consolidated Revenues Product revenues $ 10,710 $ 55,910 $ — $ 66,620 Service revenues 95,145 5,212 — 100,357 Total revenues $ 105,855 $ 61,122 $ — $ 166,977 Operating expenses Operating costs 74,304 59,773 — 134,077 Operating depreciation and amortization 3,398 3,704 — 7,102 Profit (loss) before corporate selling, general, and administrative expenses $ 28,153 $ (2,355 ) $ — $ 25,798 Selling, general, and administrative expenses 21,681 21,681 Depreciation and amortization from SG&A 1,529 1,529 Total selling, general, and administrative expenses $ 23,210 $ 23,210 Other (income) - net (253) (253) Operating income 2,841 Interest expense – net 962 962 Income before income taxes $ 1,879
Reconciliation of Assets from Segment to Consolidated	Total assets by segment as of June 18, 2016 and January 2, 2016 were as follows: (Thousands) June 18, 2016 January 2, 2016 Total Assets: Environmental Services $ 129,740 $ 133,718 Oil Business 135,226 132,556 Unallocated Corporate Assets 39,172 35,574 Total $ 304,138 $ 301,848

Share-based Compensation (Table

Share-based Compensation (Tables)	6 Months Ended
	Jun. 18, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Option Activity	A summary of stock option activity under this Plan is as follows: Outstanding Stock Options Number of Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value as of Date Listed (in thousands) Options outstanding at January 2, 2016 534,428 $ 10.97 2.34 $ 224 Exercised — — Options outstanding at June 18, 2016 534,428 $ 10.97 1.88 $ 1,093
Schedule of Restricted Stock Unit Activity	The following table summarizes the restricted stock activity for the period ended June 18, 2016 : Restricted Stock (Nonvested Shares) Number of Shares Weighted Average Grant-Date Fair Value Per Share Nonvested shares outstanding at January 2, 2016 91,529 $ 14.47 Granted 70,882 9.90 Vested (22,638 ) 12.59 Nonvested shares outstanding at June 18, 2016 139,773 $ 12.46

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 18, 2016
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Earnings Per Share	The following table reconciles the number of shares outstanding for the second quarter s of fiscal 2016 and 2015 , respectively, to the number of weighted average basic shares outstanding and the number of weighted average diluted shares outstanding for the purposes of calculating basic and diluted earnings per share: Second Quarter Ended, First Half Ended, (Thousands) June 18, 2016 June 20, 2015 June 18, 2016 June 20, 2015 Net income $ 1,831 $ 1,998 $ 106 $ 1,098 Less: Income attributable to noncontrolling interest — 28 42 69 Net income attributable to Heritage-Crystal Clean, Inc. available to common stockholders $ 1,831 $ 1,970 $ 64 $ 1,029 Weighted average basic shares outstanding 22,246 22,138 22,236 22,129 Dilutive shares from share–based compensation plans 173 265 156 245 Weighted average diluted shares outstanding 22,419 22,403 22,392 22,374 Net income per share: basic $ 0.08 $ 0.09 $ — $ 0.05 Net income per share: diluted $ 0.08 $ 0.09 $ — $ 0.05

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details) - Accounting Standards Update 2015-03 [Member] $ in Millions	Jan. 02, 2016USD ($)
Other Current Assets [Member]
Deferred finance costs, net	$ 1.4
Term Loan, Less Current Maturities [Member]
Deferred finance costs, net	$ (1.4)

Business Combinations - Narrati

Business Combinations - Narrative (Details) - Phoenix Environmental Services, Inc. [Member]	Mar. 24, 2016USD ($)
Business Acquisition [Line Items]
Cash paid for acquisition	$ 2,700,000
Cash placed into escrow	300,000
Maximum contingent consideration	$ 300,000

Business Combinations - Assets

Business Combinations - Assets and Liabilities Acquired (Details) - USD ($)	Mar. 24, 2016	Jun. 18, 2016	Jun. 20, 2015	Jan. 02, 2016
Business Acquisition [Line Items]
Goodwill		$ 31,511,000		$ 30,325,000
Net cash paid		$ 2,400,000	$ 0
Phoenix Environmental Services, Inc. [Member]
Business Acquisition [Line Items]
Accounts receivable	$ 361,000
Inventory	27,000
Property, plant, & equipment	374,000
Equipment at customers	55,000
Intangible assets	710,000
Goodwill	1,173,000
Total purchase price	2,700,000
Less: contingent consideration	(300,000)
Net cash paid	$ 2,400,000

Business Combinations - Pro For

Business Combinations - Pro Forma Information (Details) - FCC Environmental Acquisition [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2016	Jun. 20, 2015	Jun. 18, 2016	Jun. 20, 2015
Business Acquisition [Line Items]
Total revenues	$ 80,552	$ 83,670	$ 159,709	$ 168,480
Net income	$ 1,831	$ 2,023	$ 43	$ 1,209
Income per share
Basic (in dollars per share)	$ 0.08	$ 0.09	$ 0	$ 0.05
Diluted (in dollars per share)	$ 0.08	$ 0.09	$ 0	$ 0.05

Accounts Receivable - Component

Accounts Receivable - Components of Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 18, 2016	Jan. 02, 2016	Jan. 03, 2015
Accounts Receivable, Net [Abstract]
Trade	$ 41,164	$ 38,379
Less: allowance for doubtful accounts	2,227	2,207	$ 3,927
Trade - net	38,937	36,172
Related parties	972	1,250
Other	3,578	4,170
Total accounts receivable - net	$ 43,487	$ 41,592

Accounts Receivable - Allowance

Accounts Receivable - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 18, 2016	Jun. 20, 2015	Jan. 02, 2016
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period	$ 2,207	$ 3,927	$ 3,927
Balance acquired from FCC Environmental, including measurement period adjustments	0		2,701
Provision for bad debts	361	$ 721	1,009
Accounts written off, net of recoveries	(341)		(5,430)
Balance at end of period	$ 2,227		$ 2,207

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2016	Jun. 20, 2015	Jun. 18, 2016	Jun. 20, 2015	Jan. 02, 2016
Inventory Disclosure [Abstract]
Used oil and processed oil	$ 7,918		$ 7,918		$ 9,045
Solvents and solutions	4,658		4,658		6,285
Machines	3,408		3,408		3,827
Drums and supplies	4,222		4,222		4,226
Other	1,678		1,678		1,681
Total inventory	21,884		21,884		25,064
Less: machine refurbishing reserve	331		331		290
Total inventory - net	21,553		21,553		$ 24,774
Inventory write-down	$ 200	$ 1,800	$ 1,651	$ 4,415

Property, Plant, and Equipmen37

Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2016	Jun. 20, 2015	Jun. 18, 2016	Jun. 20, 2015	Jan. 02, 2016
Property, Plant and Equipment [Abstract]
Machinery, vehicles and equipment	$ 77,024		$ 77,024		$ 75,129
Buildings and storage tanks	69,569		69,569		69,317
Land	9,308		9,308		9,295
Leasehold improvements	4,585		4,585		4,523
Construction in progress	6,546		6,546		4,474
Assets held for sale	148		148		189
Total property, plant and equipment	167,180		167,180		162,927
Less: accumulated depreciation	(36,183)		(36,183)		(31,562)
Property, plant and equipment - net	130,997		130,997		131,365
Equipment at customers	61,233		61,233		59,216
Less: accumulated depreciation	(38,085)		(38,085)		(36,044)
Equipment at customers - net	23,148		23,148		$ 23,172
Depreciation expense	$ 3,400	$ 3,600	$ 6,700	$ 7,400

Goodwill and Other Intangible38

Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 18, 2016USD ($)reporting_unit
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reporting units | reporting_unit	2
Goodwill [Roll Forward]
Beginning balance	$ 30,325
Phoenix Environmental acquisition	1,173
Currency translation adjustments	13
Ending balance	31,511
Oil Business Segment [Member]
Goodwill [Roll Forward]
Beginning balance	0
Phoenix Environmental acquisition	0
Currency translation adjustments	0
Ending balance	0
Environmental Services Segment [Member]
Goodwill [Roll Forward]
Beginning balance	30,325
Phoenix Environmental acquisition	1,173
Currency translation adjustments	13
Ending balance	$ 31,511

Goodwill and Other Intangible39

Goodwill and Other Intangible Assets - Summary of Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2016	Jun. 20, 2015	Jun. 18, 2016	Jun. 20, 2015	Jan. 02, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 33,564		$ 33,564		$ 32,710
Accumulated Amortization	12,025		12,025		10,508
Net Carrying Amount	21,539		21,539		22,202
Amortization of intangible assets	700	$ 700	1,500	$ 1,200
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
2,016	1,800		1,800
2,017	3,200		3,200
2,018	2,900		2,900
2,019	2,600		2,600
2,020	2,500		2,500
Customer & supplier relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	22,933		22,933		22,202
Accumulated Amortization	5,408		5,408		4,369
Net Carrying Amount	17,525		$ 17,525		17,833
Useful life			11 years
Software [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,573		$ 4,573		4,455
Accumulated Amortization	3,500		3,500		3,382
Net Carrying Amount	1,073		$ 1,073		1,073
Useful life			9 years
Non-compete agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,940		$ 2,940		2,930
Accumulated Amortization	1,936		1,936		1,713
Net Carrying Amount	1,004		$ 1,004		1,217
Useful life			5 years
Patents, formulae, and licenses [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,769		$ 1,769		1,769
Accumulated Amortization	541		541		510
Net Carrying Amount	1,228		$ 1,228		1,259
Useful life			15 years
Other intangible assets [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,349		$ 1,349		1,354
Accumulated Amortization	640		640		534
Net Carrying Amount	$ 709		$ 709		$ 820
Useful life			6 years

Debt And Financing Arrangemen40

Debt And Financing Arrangements (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 18, 2016	Jun. 20, 2015	Jun. 18, 2016	Jun. 20, 2015	Jan. 02, 2016	Oct. 16, 2014
Debt Instrument [Line Items]
Interest costs incurred		$ 400,000		$ 800,000
Interest costs capitalized, less than $0.1 million for the second quarter of 2015		$ 200,000	$ 0	$ 304,000
Letters of credit outstanding	$ 3,000,000		3,000,000		$ 4,400,000
Current borrowing capacity	$ 19,800,000		$ 19,800,000		34,500,000
Weighted average interest rate	3.20%	3.20%	3.20%	3.20%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Interest costs incurred	$ 500,000		$ 1,000,000
Interest costs capitalized, less than $0.1 million for the second quarter of 2015	100,000		100,000
Line of Credit [Member] | Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity						$ 140,000,000
Long-term debt	69,200,000		69,200,000		70,900,000
Line of credit facility amount outstanding	0		0		0
Unamortized debt issuance costs	$ 1,100,000		$ 1,100,000		$ 1,400,000

Segment Information - Operating

Segment Information - Operating Segment Results (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2016USD ($)	Jun. 20, 2015USD ($)	Jun. 18, 2016USD ($)segment	Jun. 20, 2015USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment			2
Revenues
Product revenues	$ 24,695	$ 32,223	$ 48,399	$ 66,620
Service revenues	55,857	50,718	110,606	100,357
Total revenues	80,552	82,941	159,005	166,977
Operating expenses
Operating costs	61,711	64,363	125,959	134,077
Operating depreciation and amortization	3,301	3,511	6,595	7,102
Profit (loss) before corporate selling, general, and administrative expenses	15,540	15,067	26,451	25,798
Selling, general, and administrative expenses	11,521	10,615	23,729	21,681
Depreciation and amortization from SG&A	817	787	1,651	1,529
Total selling, general, and administrative expenses	12,338	11,402	25,380	23,210
Other (income) - net	(142)	(154)	(201)	(253)
Operating income	3,344	3,819	1,272	2,841
Interest expense – net	451	408	969	962
Income before income taxes	2,893	3,411	303	1,879
Corporate and Eliminations [Member]
Revenues
Product revenues	0	0	0	0
Service revenues	0	0	0	0
Total revenues	0	0	0	0
Operating expenses
Operating costs	0	0	0	0
Operating depreciation and amortization	0	0	0	0
Profit (loss) before corporate selling, general, and administrative expenses	0	0	0	0
Selling, general, and administrative expenses	11,521	10,615	23,729	21,681
Depreciation and amortization from SG&A	817	787	1,651	1,529
Total selling, general, and administrative expenses	12,338	11,402	25,380	23,210
Other (income) - net	(142)	(154)	(201)	(253)
Interest expense – net	451	408	969	962
Environmental Services Segment [Member] | Operating Segments [Member]
Revenues
Product revenues	5,106	5,370	10,135	10,710
Service revenues	47,331	47,600	94,663	95,145
Total revenues	52,437	52,970	104,798	105,855
Operating expenses
Operating costs	35,631	35,591	72,436	74,304
Operating depreciation and amortization	1,710	1,671	3,424	3,398
Profit (loss) before corporate selling, general, and administrative expenses	15,096	15,708	28,938	28,153
Oil Business Segment [Member] | Operating Segments [Member]
Revenues
Product revenues	19,589	26,853	38,264	55,910
Service revenues	8,526	3,118	15,943	5,212
Total revenues	28,115	29,971	54,207	61,122
Operating expenses
Operating costs	26,080	28,772	53,523	59,773
Operating depreciation and amortization	1,591	1,840	3,171	3,704
Profit (loss) before corporate selling, general, and administrative expenses	$ 444	$ (641)	$ (2,487)	$ (2,355)

Segment Information - Assets by

Segment Information - Assets by Segment (Details) - USD ($) $ in Thousands	Jun. 18, 2016	Jan. 02, 2016
Segment Reporting Information [Line Items]
Assets	$ 304,138	$ 301,848
Operating Segments [Member] | Environmental Services Segment [Member]
Segment Reporting Information [Line Items]
Assets	129,740	133,718
Operating Segments [Member] | Oil Business Segment [Member]
Segment Reporting Information [Line Items]
Assets	135,226	132,556
Unallocated Corporate Assets [Member]
Segment Reporting Information [Line Items]
Assets	$ 39,172	$ 35,574

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Jun. 18, 2016	Jan. 02, 2016
Commitments and Contingencies Disclosure [Abstract]
Remaining amount committed	$ 8	$ 9.8
Loss contingency accrual	$ 5.5	$ 6

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 18, 2016	Jun. 20, 2015	Jun. 18, 2016	Jun. 20, 2015	Jan. 02, 2016	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Net operating loss	$ 50.3		$ 50.3			$ 44.7
Gross deferred tax asset	18.9		18.9
Excess tax benefits from share-based compensation	$ 2.5		$ 2.5
Effective tax rate	36.70%	41.40%	65.00%	41.60%
Reserve balance	$ 2.5		$ 2.5		$ 2.5

Share-based Compensation - Stoc

Share-based Compensation - Stock Option Vesting Schedule (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 18, 2016	Jan. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of shares authorized	1,902,077
Number of shares available for grant	553,427
Number of Options Outstanding
Options outstanding at January 2, 2016 (in shares)	534,428
Exercised (in shares)	0
Options outstanding at June 20, 2015 (in shares)	534,428	534,428
Weighted Average Exercise Price
Options outstanding at January 2, 2016 (in USD per share)	$ 10.97
Exercised (in USD per share)	0
Options outstanding at June 18, 2016 (in USD per share)	$ 10.97	$ 10.97
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term (in years)	1 year 10 months 17 days	2 years 4 months 2 days
Aggregate intrinsic value as of date listed	$ 1,093	$ 224

Share-based Compensation - Rest

Share-based Compensation - Restricted Stock Compensation/Awards (Details) - USD ($) $ in Millions	May 05, 2016	May 08, 2015	Jan. 31, 2016	Feb. 28, 2015	Feb. 28, 2014	Jun. 18, 2016	Jun. 20, 2015	Jan. 02, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares)						70,882
Restricted Stock [Member] | 2015 Board of Director Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation (in shares)	28,674	22,638
Unrecognized compensation expense						$ 0.2
Allocated share-based compensation expense						0.1	$ 0.1
Restricted Stock [Member] | 2013 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)					3 years
Unrecognized compensation expense						0.3		$ 0.5
Allocated share-based compensation expense						0.3	0.2
Restricted stock granted (in shares)					132,107
Restricted Stock [Member] | 2014 Service Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)				3 years
Unrecognized compensation expense						0.2		0.2
Allocated share-based compensation expense						0.1	0.1
Restricted stock granted (in shares)				38,372
Restricted Stock [Member] | 2015 Service Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 years
Unrecognized compensation expense						0.3		$ 0.3
Allocated share-based compensation expense						$ 0.1	$ 0.2
Grants in period (in shares)			42,208
Restricted Stock [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)						1 year

Share-based Compensation - Nonv

Share-based Compensation - Nonvested Restricted Stock (Details)	6 Months Ended
	Jun. 18, 2016$ / sharesshares
Number of Shares
Nonvested shares outstanding at January 2, 2016 | shares	91,529
Granted | shares	70,882
Vested | shares	(22,638)
Nonvested shares outstanding at June 18, 2016 | shares	139,773
Weighted Average Grant-Date Fair Value Per Share
Nonvested shares outstanding at January 2, 2016 (in USD per share) | $ / shares	$ 14.47
Granted (in USD per share) | $ / shares	9.90
Vested (in USD per share) | $ / shares	12.59
Nonvested shares outstanding at June 18, 2016 (in USD per share) | $ / shares	$ 12.46

Share-based Compensation - Empl

Share-based Compensation - Employee Stock Purchase Plan (Details)	6 Months Ended
	Jun. 18, 2016$ / sharesshares
Common Stock [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Issuance of common stock – ESPP (in shares)	23,040
Employee Stock Purchase Plan of 2008 [Member] | Employee Stock [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Shares available employee stock purchase plan (in shares)	72,944
Weighted average fair value per share ESPP (in USD per share) | $ / shares	$ 10.12

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 18, 2016	Jun. 20, 2015	Jun. 18, 2016	Jun. 20, 2015
Earnings Per Share [Abstract]
Net income	$ 1,831	$ 1,998	$ 106	$ 1,098
Less: Income attributable to noncontrolling interest	0	28	42	69
Net income attributable to Heritage-Crystal Clean, Inc. common stockholders	$ 1,831	$ 1,970	$ 64	$ 1,029
Weighted average basic shares outstanding (in shares)	22,246	22,138	22,236	22,129
Dilutive shares from share–based compensation plans (in shares)	173	265	156	245
Weighted average diluted shares outstanding (in shares)	22,419	22,403	22,392	22,374
Net income per share: basic (in dollars per share)	$ 0.08	$ 0.09	$ 0	$ 0.05
Net income per share: diluted (in dollars per share)	$ 0.08	$ 0.09	$ 0	$ 0.05