Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34223 | |
Entity Registrant Name | CLEAN HARBORS, INC | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-2997780 | |
Entity Address, Address Line One | 42 Longwater Drive | |
Entity Address, City or Town | Norwell | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02061-9149 | |
City Area Code | 781 | |
Local Phone Number | 792-5000 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | CLH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 55,246,298 | |
Entity Central Index Key | 0000822818 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 475,706 | $ 371,991 |
Short-term marketable securities | 56,639 | 42,421 |
Accounts receivable, net of allowances aggregating $41,714 and $38,711, respectively | 602,069 | 644,738 |
Unbilled accounts receivable | 59,438 | 56,326 |
Deferred costs | 20,212 | 21,746 |
Inventories and supplies | 220,884 | 214,744 |
Prepaid expenses and other current assets | 58,711 | 48,942 |
Total current assets | 1,493,659 | 1,400,908 |
Property, plant and equipment, net | 1,539,333 | 1,588,151 |
Other assets: | ||
Operating lease right-of-use assets | 146,454 | 162,206 |
Goodwill | 524,261 | 525,013 |
Permits and other intangibles, net | 392,401 | 419,066 |
Other | 10,079 | 13,560 |
Total other assets | 1,073,195 | 1,119,845 |
Total assets | 4,106,187 | 4,108,904 |
Current liabilities: | ||
Current portion of long-term obligations | 7,535 | 7,535 |
Accounts payable | 213,776 | 298,375 |
Deferred revenue | 67,412 | 73,370 |
Accrued expenses | 293,200 | 276,540 |
Current portion of closure, post-closure and remedial liabilities | 22,324 | 23,301 |
Current portion of operating lease liabilities | 36,814 | 40,979 |
Total current liabilities | 641,061 | 720,100 |
Other liabilities: | ||
Closure and post-closure liabilities, less current portion of $7,146 and $7,283, respectively | 77,070 | 68,368 |
Remedial liabilities, less current portion of $15,178 and $16,018, respectively | 100,389 | 98,155 |
Long-term obligations, less current portion | 1,550,756 | 1,554,116 |
Operating lease liabilities, less current portion | 110,097 | 121,020 |
Deferred taxes, unrecognized tax benefits and other long-term liabilities | 322,099 | 277,332 |
Total other liabilities | 2,160,411 | 2,118,991 |
Commitments and contingent liabilities (See Note 16) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value: authorized 80,000,000 shares; issued and outstanding 55,245,611 and 55,797,734 shares, respectively | 552 | 558 |
Additional paid-in capital | 613,208 | 644,412 |
Accumulated other comprehensive loss | (239,444) | (210,051) |
Accumulated earnings | 930,399 | 834,894 |
Total stockholders’ equity | 1,304,715 | 1,269,813 |
Total liabilities and stockholders’ equity | $ 4,106,187 | $ 4,108,904 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, issued shares (in shares) | 55,245,611 | 55,797,734 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Account receivable, allowances aggregating | $ 41,714 | $ 38,711 |
Closure and post-closure liabilities, current portion | 7,146 | 7,283 |
Remedial liabilities, current portion | $ 15,178 | $ 16,018 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 80,000,000 | 80,000,000 |
Common stock, issued shares (in shares) | 55,245,611 | 55,797,734 |
Common stock, outstanding shares (in shares) | 55,245,611 | 55,797,734 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Total revenues | $ 779,344 | $ 891,668 | $ 2,347,907 | $ 2,541,185 |
Cost of revenues: (exclusive of items shown separately below) | ||||
Total cost of revenues | 511,629 | 612,754 | 1,588,976 | 1,772,051 |
Selling, general and administrative expenses | 106,544 | 122,301 | 339,690 | 361,033 |
Accretion of environmental liabilities | 2,822 | 2,490 | 8,149 | 7,624 |
Depreciation and amortization | 74,470 | 73,756 | 221,497 | 223,328 |
Income from operations | 83,879 | 80,367 | 189,595 | 177,149 |
Other income (expense), net | 2,268 | (427) | (597) | 1,992 |
Loss on sale of businesses | (118) | 0 | (3,376) | 0 |
Loss on early extinguishment of debt | 0 | (6,119) | 0 | (6,119) |
Interest expense, net of interest income of $1,236, $1,152, $2,902 and $2,981, respectively | (17,407) | (19,702) | (54,848) | (59,681) |
Income before provision for income taxes | 68,622 | 54,119 | 130,774 | 113,341 |
Provision for income taxes | 13,712 | 17,750 | 35,269 | 39,752 |
Net income | $ 54,910 | $ 36,369 | $ 95,505 | $ 73,589 |
Earnings Per Share [Abstract] | ||||
Basic (in USD per share) | $ 0.99 | $ 0.65 | $ 1.72 | $ 1.32 |
Diluted (in USD per share) | $ 0.99 | $ 0.65 | $ 1.71 | $ 1.31 |
Shares used to compute earnings per share - Basic (in shares) | 55,592 | 55,850 | 55,646 | 55,858 |
Shares used to compute earnings per share - Diluted (in shares) | 55,738 | 56,165 | 55,832 | 56,109 |
Service revenues | ||||
Revenues: | ||||
Total revenues | $ 681,306 | $ 739,919 | $ 2,039,012 | $ 2,111,662 |
Cost of revenues: (exclusive of items shown separately below) | ||||
Total cost of revenues | 428,735 | 496,005 | 1,332,516 | 1,439,717 |
Product revenues | ||||
Revenues: | ||||
Total revenues | 98,038 | 151,749 | 308,895 | 429,523 |
Cost of revenues: (exclusive of items shown separately below) | ||||
Total cost of revenues | $ 82,894 | $ 116,749 | $ 256,460 | $ 332,334 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Interest income | $ 1,236 | $ 1,152 | $ 2,902 | $ 2,981 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 54,910 | $ 36,369 | $ 95,505 | $ 73,589 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized (losses) gains on available-for-sale securities | (121) | 9 | 111 | (84) |
Reclassification adjustment for losses on available-for-sale securities included in net income | 0 | 0 | 0 | 332 |
Unrealized loss on interest rate hedge | (123) | (3,865) | (21,505) | (17,896) |
Reclassification adjustment for losses on interest rate hedge included in net income | 2,468 | 614 | 5,696 | 1,369 |
Foreign currency translation adjustments | 10,161 | (6,177) | (13,695) | 15,960 |
Other comprehensive income (loss), net of tax | 12,385 | (9,419) | (29,393) | (319) |
Comprehensive income | $ 67,295 | $ 26,950 | $ 66,112 | $ 73,270 |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 95,505 | $ 73,589 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 221,497 | 223,328 |
Allowance for doubtful accounts | 10,441 | (745) |
Amortization of deferred financing costs and debt discount | 2,688 | 2,908 |
Accretion of environmental liabilities | 8,149 | 7,624 |
Changes in environmental liability estimates | 9,050 | (585) |
Deferred income taxes | 0 | (973) |
Other expense (income), net | 597 | (1,992) |
Stock-based compensation | 12,739 | 14,664 |
Loss on sale of businesses | 3,376 | 0 |
Loss on early extinguishment of debt | 0 | 6,119 |
Environmental expenditures | (8,816) | (12,804) |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable and unbilled accounts receivable | 23,969 | (31,408) |
Inventories and supplies | (9,554) | (11,982) |
Other current and non-current assets | (19,320) | (5,425) |
Accounts payable | (63,898) | 3,035 |
Other current and long-term liabilities | 31,009 | 19,322 |
Net cash from operating activities | 317,432 | 284,675 |
Cash flows used in investing activities: | ||
Additions to property, plant and equipment | (150,357) | (174,533) |
Proceeds from sale and disposal of fixed assets | 7,307 | 8,948 |
Acquisitions, net of cash acquired | (8,839) | (29,479) |
Proceeds from sale of businesses, net of transactional costs | 7,712 | 0 |
Additions to intangible assets including costs to obtain or renew permits | (1,863) | (2,896) |
Proceeds from sale of available-for-sale securities | 39,141 | 41,612 |
Purchases of available-for-sale securities | (53,397) | (30,761) |
Net cash used in investing activities | (160,296) | (187,109) |
Cash flows used in financing activities: | ||
Change in uncashed checks | 381 | (3,516) |
Tax payments related to withholdings on vested restricted stock | (4,407) | (5,505) |
Repurchases of common stock | (39,542) | (16,390) |
Deferred financing costs paid | 0 | (10,053) |
Premiums paid on early extinguishment of debt | 0 | (2,689) |
Payments on finance leases | (2,755) | (327) |
Principal payments on debt | (5,652) | (850,652) |
Issuance of unsecured senior notes | 0 | 845,000 |
Borrowing from revolving credit facility | 150,000 | 0 |
Payment on revolving credit facility | (150,000) | 0 |
Net cash used in financing activities | (51,975) | (44,132) |
Effect of exchange rate change on cash | (1,446) | 2,292 |
Increase in cash and cash equivalents | 103,715 | 55,726 |
Cash and cash equivalents, beginning of period | 371,991 | 226,507 |
Cash and cash equivalents, end of period | 475,706 | 282,233 |
Cash payments for interest and income taxes: | ||
Interest paid | 66,000 | 52,440 |
Income taxes paid, net of refunds | 14,195 | 23,797 |
Non-cash investing activities: | ||
Property, plant and equipment accrued | 11,732 | 14,875 |
ROU assets obtained in exchange for operating lease liabilities | 19,993 | 8,008 |
ROU assets obtained in exchange for finance lease liabilities | $ 28,333 | $ 31,011 |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Earnings |
Increase (Decrease) in Stockholders' Equity | |||||
Common stock, par value (in USD per share) | $ 0.01 | ||||
Balance beginning of period (in shares) at Dec. 31, 2018 | 55,847 | ||||
Balance beginning of period at Dec. 31, 2018 | $ 1,169,756 | $ 558 | $ 655,415 | $ (223,371) | $ 737,154 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 976 | 976 | |||
Other comprehensive (loss) income | 4,024 | 4,024 | |||
Stock-based compensation | 5,809 | 5,809 | |||
Issuance of common stock for restricted share vesting, net of employee tax withholdings (in shares) | 78 | ||||
Issuance of common stock for restricted share vesting, net of employee tax withholdings | (2,276) | $ 1 | (2,277) | ||
Repurchases of common stock (in shares) | (97) | ||||
Repurchases of common stock | (6,324) | $ (1) | (6,323) | ||
Balance ending of period (in shares) at Mar. 31, 2019 | 55,828 | ||||
Balance ending of period at Mar. 31, 2019 | 1,171,965 | $ 558 | 652,624 | (219,347) | 738,130 |
Balance beginning of period (in shares) at Dec. 31, 2018 | 55,847 | ||||
Balance beginning of period at Dec. 31, 2018 | 1,169,756 | $ 558 | 655,415 | (223,371) | 737,154 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 73,589 | ||||
Other comprehensive (loss) income | (319) | ||||
Balance ending of period (in shares) at Sep. 30, 2019 | 55,808 | ||||
Balance ending of period at Sep. 30, 2019 | $ 1,235,795 | $ 558 | 648,184 | (223,690) | 810,743 |
Increase (Decrease) in Stockholders' Equity | |||||
Common stock, par value (in USD per share) | $ 0.01 | ||||
Balance beginning of period (in shares) at Mar. 31, 2019 | 55,828 | ||||
Balance beginning of period at Mar. 31, 2019 | $ 1,171,965 | $ 558 | 652,624 | (219,347) | 738,130 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 36,244 | 36,244 | |||
Other comprehensive (loss) income | 5,076 | 5,076 | |||
Stock-based compensation | 3,834 | 3,834 | |||
Issuance of common stock for restricted share vesting, net of employee tax withholdings (in shares) | 105 | ||||
Issuance of common stock for restricted share vesting, net of employee tax withholdings | (2,704) | $ 1 | (2,705) | ||
Repurchases of common stock (in shares) | (74) | ||||
Repurchases of common stock | (4,948) | (4,948) | |||
Balance ending of period (in shares) at Jun. 30, 2019 | 55,859 | ||||
Balance ending of period at Jun. 30, 2019 | $ 1,209,467 | $ 559 | 648,805 | (214,271) | 774,374 |
Increase (Decrease) in Stockholders' Equity | |||||
Common stock, par value (in USD per share) | $ 0.01 | ||||
Net income | $ 36,369 | 36,369 | |||
Other comprehensive (loss) income | (9,419) | (9,419) | |||
Stock-based compensation | 5,021 | 5,021 | |||
Issuance of common stock for restricted share vesting, net of employee tax withholdings (in shares) | 17 | ||||
Issuance of common stock for restricted share vesting, net of employee tax withholdings | (525) | (525) | |||
Repurchases of common stock (in shares) | (68) | ||||
Repurchases of common stock | (5,118) | $ (1) | (5,117) | ||
Balance ending of period (in shares) at Sep. 30, 2019 | 55,808 | ||||
Balance ending of period at Sep. 30, 2019 | $ 1,235,795 | $ 558 | 648,184 | (223,690) | 810,743 |
Increase (Decrease) in Stockholders' Equity | |||||
Common stock, par value (in USD per share) | $ 0.01 | ||||
Common stock, par value (in USD per share) | $ 0.01 | ||||
Balance beginning of period (in shares) at Dec. 31, 2019 | 55,798 | ||||
Balance beginning of period at Dec. 31, 2019 | $ 1,269,813 | $ 558 | 644,412 | (210,051) | 834,894 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 11,572 | 11,572 | |||
Other comprehensive (loss) income | (59,306) | (59,306) | |||
Stock-based compensation | 3,291 | 3,291 | |||
Issuance of common stock for restricted share vesting, net of employee tax withholdings (in shares) | 59 | ||||
Issuance of common stock for restricted share vesting, net of employee tax withholdings | (2,224) | $ 1 | (2,225) | ||
Repurchases of common stock (in shares) | (302) | ||||
Repurchases of common stock | (17,341) | $ (3) | (17,338) | ||
Balance ending of period (in shares) at Mar. 31, 2020 | 55,555 | ||||
Balance ending of period at Mar. 31, 2020 | 1,205,805 | $ 556 | 628,140 | (269,357) | 846,466 |
Balance beginning of period (in shares) at Dec. 31, 2019 | 55,798 | ||||
Balance beginning of period at Dec. 31, 2019 | 1,269,813 | $ 558 | 644,412 | (210,051) | 834,894 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 95,505 | ||||
Other comprehensive (loss) income | (29,393) | ||||
Balance ending of period (in shares) at Sep. 30, 2020 | 55,246 | ||||
Balance ending of period at Sep. 30, 2020 | $ 1,304,715 | $ 552 | 613,208 | (239,444) | 930,399 |
Increase (Decrease) in Stockholders' Equity | |||||
Common stock, par value (in USD per share) | $ 0.01 | ||||
Balance beginning of period (in shares) at Mar. 31, 2020 | 55,555 | ||||
Balance beginning of period at Mar. 31, 2020 | $ 1,205,805 | $ 556 | 628,140 | (269,357) | 846,466 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 29,023 | 29,023 | |||
Other comprehensive (loss) income | 17,528 | 17,528 | |||
Stock-based compensation | 2,786 | 2,786 | |||
Issuance of common stock for restricted share vesting, net of employee tax withholdings (in shares) | 58 | ||||
Issuance of common stock for restricted share vesting, net of employee tax withholdings | (1,171) | (1,171) | |||
Balance ending of period (in shares) at Jun. 30, 2020 | 55,613 | ||||
Balance ending of period at Jun. 30, 2020 | $ 1,253,971 | $ 556 | 629,755 | (251,829) | 875,489 |
Increase (Decrease) in Stockholders' Equity | |||||
Common stock, par value (in USD per share) | $ 0.01 | ||||
Net income | $ 54,910 | 54,910 | |||
Other comprehensive (loss) income | 12,385 | 12,385 | |||
Stock-based compensation | 6,662 | 6,662 | |||
Issuance of common stock for restricted share vesting, net of employee tax withholdings (in shares) | 35 | ||||
Issuance of common stock for restricted share vesting, net of employee tax withholdings | (1,012) | (1,012) | |||
Repurchases of common stock (in shares) | (402) | ||||
Repurchases of common stock | (22,201) | $ (4) | (22,197) | ||
Balance ending of period (in shares) at Sep. 30, 2020 | 55,246 | ||||
Balance ending of period at Sep. 30, 2020 | $ 1,304,715 | $ 552 | $ 613,208 | $ (239,444) | $ 930,399 |
Increase (Decrease) in Stockholders' Equity | |||||
Common stock, par value (in USD per share) | $ 0.01 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying consolidated interim financial statements are unaudited and include the accounts of Clean Harbors, Inc. and its subsidiaries (collectively, “Clean Harbors,” the “Company” or "we") and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, in the opinion of management, include all adjustments which are of a normal recurring nature and are necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. Management has made estimates and assumptions affecting the amounts reported in the Company's consolidated interim financial statements and accompanying footnotes; actual results could differ from those estimates and judgments. The results for interim periods are not necessarily indicative of results for the entire year or any other interim periods. The financial statements presented herein should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. A novel strain of coronavirus ("COVID-19") was first identified in December 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020. As a result of the outbreak, many companies have experienced disruptions in their operations, workforce and markets served, including a significant reduction in the demand for petroleum-based products. The Company's businesses and operations began being adversely impacted by effects of COVID-19 in March of 2020 when circumstances surrounding and responses to the pandemic, including stay-at-home orders, began to materialize in North America. These disruptions have had a significant impact on the Company's operating results since then, and the Company expects that operations will continue to be impacted. The full extent of the ongoing COVID-19 outbreak and changes in demand for oil and the impact on the Company’s operations is uncertain. A prolonged disruption could have a material adverse impact on financial results and business operations of the Company. In response to the COVID-19 outbreak, the Company has seen increased demand in emergency response decontamination services related to the coronavirus. In particular, the Company is addressing the safety of its customers and communities by providing contagion decontamination services. In conducting these services, employee safety is paramount and the Company has been able to provide appropriate personal protective equipment and support to those performing these services. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES The Company's significant accounting policies are described in Note 2, "Significant Accounting Policies," in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. There have been no material changes in these policies or their application except for the changes described below. Landfill Accounting Landfill capacity - During the first nine months of 2020, the Company has taken actions to begin the closure of one of the Company's commercial landfill sites. The planned closure will nominally reduce the Company's remaining highly probable airspace. See Note 9, "Closure and Post-Closure Liabilities," for additional information. Government Grants On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law in response to the widespread economic impact of the COVID-19 pandemic. On April 11, 2020, the Canadian federal government enacted the COVID-19 Emergency Response Act, No.2, which implemented the Canada Emergency Wage Subsidy ("CEWS"). During the three and nine months ended September 30, 2020, the Company recorded benefits of $13.3 million and $36.7 million, respectively, as an offset to the related operating expenses in either cost of revenues or selling, general and administrative expenses for the eligible employee retention credit under the CARES Act and the subsidy under CEWS. The benefits received under these government sponsored programs do not require repayment. |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The Company generates revenues through its Environmental Services and Safety-Kleen operating segments. The Company's Environmental Services operating segment generally has the following three sources of revenue: Technical Services —Technical Services revenues are generated from fees charged for waste material management and disposal services including onsite environmental management services, collection and transportation, packaging, recycling, treatment and disposal of waste. Revenue is primarily generated by short-term projects, most of which are governed by master service agreements that are long-term in nature. These master service agreements are typically entered into with the Company's larger customers and outline the pricing and legal frameworks for such arrangements. Services are provided based on purchase orders or agreements with the customer and include prices based upon units of volume of waste and transportation and other fees. Collection and transportation revenues are recognized over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. Revenues for treatment and disposal of waste are recognized upon completion of treatment, final disposition in a landfill or incineration, or when the waste is shipped to a third party for processing and disposal. The Company periodically enters into bundled arrangements for the collection and transportation and disposal of waste. For such arrangements, transportation and disposal are considered distinct performance obligations and the Company allocates revenue to each based on the relative standalone selling price (i.e., the estimated price that a customer would pay for the services on a standalone basis). Revenues from waste that is not yet completely processed and disposed and the related costs are deferred. The deferred revenues and costs are recognized when the related services are completed. The period between collection and transportation and the final processing and disposal ranges depending on the location of the customer, but generally is measured in days. Field and Emergency Response Services —Field Services revenues are generated from cleanup services at customer sites, including municipalities and utilities, or other locations on a scheduled or emergency response basis. Services include confined space entry for tank cleaning, site decontamination, large remediation projects, demolition, spill cleanup on land and water, railcar cleaning, product recovery and transfer and vacuum services. Additional services include filtration and water treatment services. Response services for environmental, contamination or pandemic related emergencies include any scale from man-made disasters such as oil spills, to natural disasters such as hurricanes. More recently demand has increased for projects involving contagion disinfection, decontamination and disposal services in response to the COVID-19 pandemic. Field and emergency response services are provided based on purchase orders or agreements with customers and include prices generally based upon daily, hourly or job rates for equipment, materials and personnel. The Company recognizes revenue for these services over time, as the customer receives and consumes the benefits of the service as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. The duration of such services can be over a number of hours, several days or even months for larger scale projects. Industrial Services and Other —Industrial Services revenues are primarily generated from industrial and specialty services provided to refineries, mines, upgraders, chemical plants, pulp and paper mills, manufacturing facilities, power generation facilities and other industrial customers throughout North America. Services include in-plant cleaning and maintenance services, plant outage and turnaround services, decoking and pigging, chemical cleaning, high and ultra-high pressure water cleaning, pipeline inspection and coating services, large tank and surface impoundment cleaning, oilfield transport, daylighting, production services and upstream energy services, such as exploration and drilling for industrial oil and gas customers. Services are provided based on purchase orders or agreements with the customer and include prices based upon daily, hourly or job rates for equipment, materials and personnel. The Company recognizes revenue for these services over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. The Company's Safety-Kleen operating segment generally has the following two sources of revenue: Safety-Kleen Environmental Services —Safety-Kleen Environmental Services revenues are generated from providing parts washer services, containerized waste handling and disposal services, oil collection services, vacuum services, direct sales of blended oil products and other complementary services and product sales. Containerized waste services consist of profiling, collecting, transporting and recycling or disposing of a wide variety of waste. Other products and services include sale of complementary supply products including automotive fluids and shop supplies and other environmental services. Parts washer services include customer use of our parts washer equipment, cleaning and maintenance of the parts washer equipment and removal and replacement of used cleaning fluids. Parts washer services are considered a single performance obligation due to the highly integrated and interdependent nature of the arrangement. Revenue from parts washer services is recognized over the service interval as the customer receives the benefit of the services. Collection and transportation revenues are recognized over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. Product revenue is recognized upon the transfer of control whereby control transfers when the products are delivered to the customer. Safety-Kleen Oil —Revenues from Safety-Kleen Oil are generated from sales of high-quality base and blended lubricating oils to third-party distributors, government agencies, fleets, railroads and industrial customers. The business also sells recycled fuel oil to asphalt plants, industrial plants and pulp and paper companies. The used oil is also processed into vacuum gas oil which can be further re-refined into lubricant base oils or sold directly into the marine diesel oil fuel market. Revenue for oil products is recognized at a point in time, upon the transfer of control. Control transfers when the products are delivered to the customer. Disaggregation of Revenue We disaggregate the Company's third party revenues by geographic location and source of revenue as we believe these categories depict how revenue and cash flows are affected by economic factors (in thousands): For the Three Months Ended September 30, 2020 Environmental Services Safety-Kleen Corporate Total Primary Geographical Markets United States $ 409,787 $ 257,048 $ (186) $ 666,649 Canada 88,396 24,041 258 112,695 Total third-party revenues $ 498,183 $ 281,089 $ 72 $ 779,344 Sources of Revenue (1) Technical Services $ 257,612 $ — $ — $ 257,612 Field and Emergency Response Services 115,989 — — 115,989 Industrial Services and Other 124,582 — 72 124,654 Safety-Kleen Environmental Services — 203,455 — 203,455 Safety-Kleen Oil — 77,634 — 77,634 Total third-party revenues $ 498,183 $ 281,089 $ 72 $ 779,344 For the Three Months Ended September 30, 2019 Environmental Services Safety-Kleen Corporate Total Primary Geographical Markets United States $ 450,638 $ 313,979 $ (265) $ 764,352 Canada 99,484 27,438 394 127,316 Total third-party revenues $ 550,122 $ 341,417 $ 129 $ 891,668 Sources of Revenue (1) Technical Services $ 292,506 $ — $ — $ 292,506 Field and Emergency Response Services 95,546 — — 95,546 Industrial Services and Other (2) 162,070 — 129 162,199 Safety-Kleen Environmental Services — 217,439 — 217,439 Safety-Kleen Oil — 123,978 — 123,978 Total third-party revenues $ 550,122 $ 341,417 $ 129 $ 891,668 For the Nine Months Ended September 30, 2020 Environmental Services Safety-Kleen Corporate Total Primary Geographical Markets United States $ 1,253,252 $ 791,919 $ (648) $ 2,044,523 Canada 237,389 65,129 866 303,384 Total third-party revenues $ 1,490,641 $ 857,048 $ 218 $ 2,347,907 Sources of Revenue (1) Technical Services $ 774,814 $ — $ — $ 774,814 Field and Emergency Response Services 349,254 — — 349,254 Industrial Services and Other 366,573 — 218 366,791 Safety-Kleen Environmental Services — 612,808 — 612,808 Safety-Kleen Oil — 244,240 — 244,240 Total third-party revenues $ 1,490,641 $ 857,048 $ 218 $ 2,347,907 For the Nine Months Ended September 30, 2019 Environmental Services Safety-Kleen Corporate Total Primary Geographical Markets United States $ 1,270,556 $ 917,240 $ 531 $ 2,188,327 Canada 279,558 72,906 394 352,858 Total third-party revenues $ 1,550,114 $ 990,146 $ 925 $ 2,541,185 Sources of Revenue (1) Technical Services $ 820,333 $ — $ — $ 820,333 Field and Emergency Response Services 253,894 — — 253,894 Industrial Services and Other (2) 475,887 — 925 476,812 Safety-Kleen Environmental Services — 640,956 — 640,956 Safety-Kleen Oil — 349,190 — 349,190 Total third-party revenues $ 1,550,114 $ 990,146 $ 925 $ 2,541,185 ________________ (1) All revenue except oil and oil product sales within Safety-Kleen Oil and product sales within Safety-Kleen Environmental Services, which include various automotive related fluids, shop supplies and direct blended oil sales, are recognized over time. Safety-Kleen Oil and Safety-Kleen Environmental Services product sales are recognized at a point in time. (2) Third-party revenues previously reported as Oil, Gas and Lodging Services of $30.2 million and Other of $0.1 million for the three months ended September 30, 2019, respectively, and $91.9 million and $0.9 million, respectively for the nine months ended September 30, 2019, are now disclosed within Industrial Services and Other based on relative materiality to the business. Contract Balances (in thousands) September 30, 2020 December 31, 2019 Receivables $ 602,069 $ 644,738 Contract assets (unbilled receivables) 59,438 56,326 Contract liabilities (deferred revenue) 67,412 73,370 The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and customer advances and deposits or deferred revenue (contract liabilities) on the consolidated balance sheet. Generally, billing occurs subsequent to revenue recognition, as a right to payment is not just subject to passage of time, resulting in contract assets. Contract assets are generally classified as current. The Company sometimes receives advances or deposits from its customers before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. The contract liability balances at the beginning of each period presented were generally fully recognized in the subsequent three-month period. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS 2020 Acquisition On April 17, 2020, the Company acquired a privately-owned business for $8.8 million cash consideration. The acquired company expands the Safety-Kleen segment's oil re-refining operations to the northeast United States. In connection with this acquisition, a preliminary goodwill amount of $1.4 million was recognized. 2019 Acquisitions On May 31, 2019, the Company acquired a privately-owned business for $14.8 million cash consideration. The acquired company expands the environmental services and hazardous materials management services of the Company and is included in the Environmental Services segment. In connection with this acquisition, a goodwill amount of $7.4 million was recognized. On March 1, 2019, the Company acquired certain assets of a privately-owned business for $10.4 million cash consideration. The acquired business complements the Safety-Kleen segment's core service offerings, such as used motor oil collection, parts washers, oil filter recycling and vacuum services. In connection with this acquisition, a goodwill amount of $5.2 million was recognized. |
INVENTORIES AND SUPPLIES
INVENTORIES AND SUPPLIES | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES AND SUPPLIES | INVENTORIES AND SUPPLIES Inventories and supplies consisted of the following (in thousands): September 30, 2020 December 31, 2019 Oil and oil related products $ 77,808 $ 75,408 Supplies and drums 119,157 115,128 Solvent and solutions 10,290 9,973 Other 13,629 14,235 Total inventories and supplies $ 220,884 $ 214,744 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following (in thousands): September 30, 2020 December 31, 2019 Land $ 139,184 $ 131,023 Asset retirement costs (non-landfill) 16,185 15,924 Landfill assets 185,678 182,276 Buildings and improvements (1) 502,507 499,159 Camp equipment 154,427 158,277 Vehicles (2) 819,583 785,056 Equipment (3) 1,798,792 1,779,366 Furniture and fixtures 6,920 6,054 Construction in progress 20,928 36,679 3,644,204 3,593,814 Less - accumulated depreciation and amortization 2,104,871 2,005,663 Total property, plant and equipment, net $ 1,539,333 $ 1,588,151 ________________ (1) Balances inclusive of gross right-of-use ("ROU") assets classified as finance leases of $8.0 million and $31.0 million, respectively. (2) Balances inclusive of gross ROU assets classified as finance leases of $43.8 million and $2.4 million, respectively. (3) September 30, 2020 balance inclusive of gross ROU assets classified as finance leases of $9.1 million . Depreciation expense, inclusive of landfill and finance lease amortization, was $64.9 million and $193.9 million for the three and nine months ended September 30, 2020, respectively. Depreciation expense, inclusive of landfill and finance lease amortization, was $65.3 million and $196.7 million for the three and nine months ended September 30, 2019, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in goodwill by segment for the nine months ended September 30, 2020 were as follows (in thousands): Environmental Services Safety-Kleen Totals Balance at January 1, 2020 $ 212,531 $ 312,482 $ 525,013 Increase from current period acquisition — 1,440 1,440 Measurement period adjustments from prior period acquisitions 23 — 23 Decrease from disposition of businesses (674) — (674) Foreign currency translation (741) (800) (1,541) Balance at September 30, 2020 $ 211,139 $ 313,122 $ 524,261 The Company assesses goodwill for impairment on an annual basis as of December 31 or at an interim date when events or changes in the business environment ("triggering events") would more likely than not reduce the fair value of a reporting unit below its carrying value. During the period ended September 30, 2020, the Company considered the effects of COVID-19 and evolving changes in demand and pricing for oil, but concluded that there were no triggering events requiring an impairment assessment. This conclusion was based on a qualitative analysis incorporating (i) the significant excess fair value that previously existed in each reporting unit and (ii) assessing the current and long-term performance of the Company given the expectation that these negative effects on the operations and cash flows of each reporting unit arising from COVID-19 related disruptions will be short-lived. The Company continues to evaluate the impact of macroeconomic conditions including, but not limited to, the impact of the COVID-19 pandemic on the Company, customers and the greater economy as well as the impact on trends of oil demand. If these macroeconomic conditions are protracted or result in significant changes in demand for our products and services, a goodwill impairment might be identified and the amount might be material. As of September 30, 2020 and December 31, 2019, the Company's intangible assets consisted of the following (in thousands): September 30, 2020 December 31, 2019 Cost Accumulated Net Cost Accumulated Net Permits $ 182,478 $ 92,725 $ 89,753 $ 184,235 $ 87,228 $ 97,007 Customer and supplier relationships 388,862 213,700 175,162 401,696 207,884 193,812 Other intangible assets 38,153 33,334 4,819 38,331 33,018 5,313 Total amortizable permits and other intangible assets 609,493 339,759 269,734 624,262 328,130 296,132 Trademarks and trade names 122,667 — 122,667 122,934 — 122,934 Total permits and other intangible assets $ 732,160 $ 339,759 $ 392,401 $ 747,196 $ 328,130 $ 419,066 Amortization expense of permits and other intangible assets was $9.6 million and $27.6 million in the three and nine months ended September 30, 2020, respectively. Amortization expense of permits and other intangible assets was $8.4 million and $26.6 million in the three and nine months ended September 30, 2019, respectively. The expected amortization of the net carrying amount of finite-lived intangible assets at September 30, 2020 was as follows (in thousands): Years Ending December 31, Expected Amortization 2020 (three months) $ 7,841 2021 29,997 2022 29,742 2023 25,482 2024 23,997 Thereafter 152,675 $ 269,734 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following (in thousands): September 30, 2020 December 31, 2019 Accrued insurance $ 77,985 $ 74,376 Accrued interest 9,179 21,222 Accrued compensation and benefits 60,784 72,473 Accrued income, real estate, sales and other taxes 54,677 35,749 Interest rate swap liability 36,649 20,840 Accrued other 53,926 51,880 $ 293,200 $ 276,540 |
CLOSURE AND POST-CLOSURE LIABIL
CLOSURE AND POST-CLOSURE LIABILITIES | 9 Months Ended |
Sep. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
CLOSURE AND POST-CLOSURE LIABILITIES | CLOSURE AND POST-CLOSURE LIABILITIES The changes to closure and post-closure liabilities (also referred to as “asset retirement obligations”) from January 1, 2020 through September 30, 2020 were as follows (in thousands): Landfill Non-Landfill Total Balance at January 1, 2020 $ 39,401 $ 36,250 $ 75,651 Liabilities assumed in acquisitions — 265 265 New asset retirement obligations 1,643 — 1,643 Accretion 2,373 2,516 4,889 Changes in estimates recorded to statement of operations 4,503 (14) 4,489 Changes in estimates recorded to balance sheet 179 15 194 Expenditures (2,116) (622) (2,738) Currency translation and other (133) (44) (177) Balance at September 30, 2020 $ 45,850 $ 38,366 $ 84,216 During the first nine months of 2020, the Company has taken actions to begin the closure of one of its commercial landfill sites resulting in a $4.5 million increase to the related closure and post-closure liability. The remaining ten landfill facilities remain active as of September 30, 2020. In the nine months ended September 30, 2020, other than this charge, there were no significant charges (benefits) resulting from changes in estimates for closure and post-closure liabilities. New asset retirement obligations incurred during the first nine months of 2020 were discounted at the credit-adjusted risk-free rate of 5.60%. |
REMEDIAL LIABILITIES
REMEDIAL LIABILITIES | 9 Months Ended |
Sep. 30, 2020 | |
Environmental Remediation Obligations [Abstract] | |
REMEDIAL LIABILITIES | REMEDIAL LIABILITIES The changes to remedial liabilities from January 1, 2020 through September 30, 2020 were as follows (in thousands): Remedial Remedial Remedial Total Balance at January 1, 2020 $ 1,851 $ 61,991 $ 50,331 $ 114,173 Accretion 67 1,914 1,279 3,260 Changes in estimates recorded to statement of operations (14) 3,023 1,552 4,561 Expenditures (46) (3,278) (2,754) (6,078) Currency translation and other — (912) 563 (349) Balance at September 30, 2020 $ 1,858 $ 62,738 $ 50,971 $ 115,567 In the nine months ended September 30, 2020, the Company increased its remedial liabilities for an inactive site by $3.3 million and increased its remedial liabilities for a Superfund site by $1.8 million due to changes in the estimates of the related liabilities. These changes in estimates were triggered by the receipts of updated regulatory approval requirements for remediation. Other than these charges, there were no significant charges (benefits) resulting from changes in estimates for remedial liabilities. |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS The following table is a summary of the Company’s financing arrangements (in thousands): Current Obligations: September 30, 2020 December 31, 2019 Secured senior term loans ("Term Loans") $ 7,535 $ 7,535 Long-Term Obligations: Secured senior Term Loans due June 30, 2024 $ 721,510 $ 727,162 Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes") 545,000 545,000 Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes") 300,000 300,000 Long-term obligations, at par $ 1,566,510 $ 1,572,162 Unamortized debt issuance costs and premium, net (15,754) (18,046) Long-term obligations, at carrying value $ 1,550,756 $ 1,554,116 Financing Activities As of September 30, 2020 and December 31, 2019, the estimated fair value of the Company’s outstanding long-term obligations, including the current portion, was $1.6 billion. The Company’s estimates of fair value of its long-term obligations, including the current portion, are based on quoted market prices or other available market data which are considered Level 2 measures according to the fair value hierarchy. Level 2 utilizes quoted market prices in markets that are not active, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency for similar assets and liabilities. The Company maintains a $400.0 million revolving credit facility. On March 31, 2020, the Company drew down $150.0 million on the revolving credit facility in response to the uncertainty surrounding the COVID-19 global pandemic. The Company repaid $75.0 million of that borrowing on June 29, 2020, and the remaining $75.0 million on July 28, 2020. As of September 30, 2020, the Company had $249.1 million available to borrow under the revolving credit facility and outstanding letters of credit were $123.5 million. At December 31, 2019, $229.2 million was available to borrow and outstanding letters of credit were $146.9 million. On October 28, 2020, the Company entered into an amended and restated credit agreement for its revolving credit facility. Under the amended and restated agreement, the terms are substantially the same as under the prior agreement, but the facility termination date has been extended to October 28, 2025, subject to certain conditions. Cash Flow Hedges The Company’s strategy to hedge against fluctuations in variable interest rates involves entering into interest rate derivative agreements. Although the interest rate on the Term Loans is variable, the Company has effectively fixed the interest rate on $350.0 million aggregate principal amount of the Term Loans outstanding by entering into interest rate swap agreements in 2018 with a notional amount of $350.0 million. Under the terms of the interest rate swap agreements, the Company receives interest based on the one-month LIBOR index and pays interest at a weighted average annual interest rate of 2.92%, resulting in an effective annual interest rate of 4.67%. The Company recognizes derivative instruments as either assets or liabilities on the balance sheet at fair value. No ineffectiveness has been identified on these swaps and, therefore, all unrealized changes in fair value are recorded in accumulated other comprehensive loss. Amounts are reclassified from accumulated other comprehensive loss into interest expense on the statement of operations in the same period or periods during which the hedged transaction affects earnings. As of September 30, 2020 and December 31, 2019, the Company has recorded an interest rate swap liability with a fair value of $36.6 million and $20.8 million, respectively, within accrued expenses in connection with these cash flow hedges. The fair value of the interest rate swaps is calculated using discounted cash flow valuation methodologies based upon the one-month LIBOR yield curves that are observable at commonly quoted intervals for the full term of the interest rate swaps and as such is considered a Level 2 measure according to the fair value hierarchy. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company records a tax provision or benefit on an interim basis using an estimated annual effective tax rate. This rate is applied to the current period ordinary income or loss to determine the income tax provision or benefit allocated to the interim period. Losses from jurisdictions for which no benefit can be recognized and the income tax effects of unusual or infrequent items are excluded from the estimated annual effective tax rate and are recognized in the impacted interim period. The estimated annual effective tax rate may be significantly impacted by projected earnings mix by tax jurisdiction. Adjustments to the estimated annual effective income tax rate are recognized in the period when such estimates are revised. The Company’s effective tax rate for the three and nine months ended September 30, 2020 was 20.0% and 27.0%, compared to 32.8% and 35.1%, respectively, for the comparable periods in 2019. As of September 30, 2020 and December 31, 2019, the Company had recorded $5.2 million and $6.4 million, respectively, of liabilities for unrecognized tax benefits and $1.9 million and $1.7 million, respectively, of interest. The Company released $1.1 million of uncertain tax positions in the three months ended September 30, 2020. The Internal Revenue Service ("IRS") completed its examination of the Company’s tax years 2014-2016 and the Joint Committee on Taxation completed its review and took no exception. No material adjustments were made to the previously filed returns as a result of this process. In the third quarter of 2020, the Company received a refund of $7.7 million associated with the amended returns for these tax years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following are computations of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator for basic and diluted earnings per share: Net income $ 54,910 $ 36,369 $ 95,505 $ 73,589 Denominator: Basic shares outstanding 55,592 55,850 55,646 55,858 Dilutive effect of outstanding stock awards 146 315 186 251 Dilutive shares outstanding 55,738 56,165 55,832 56,109 Basic earnings per share: $ 0.99 $ 0.65 $ 1.72 $ 1.32 Diluted earnings per share: $ 0.99 $ 0.65 $ 1.71 $ 1.31 For the three months ended September 30, 2020 and September 30, 2019, all then outstanding performance awards and restricted stock awards were included in the calculation of diluted earnings per share except for 235,806 and 147,075, respectively, of performance stock awards for which the performance criteria were not attained at the time and 16,183 and 3,567, respectively, of restricted stock awards which were excluded as their inclusion would have an antidilutive effect. For the nine months ended September 30, 2020 and September 30, 2019, all then outstanding performance awards and restricted stock awards were included in the calculation of diluted earnings per share except for 235,806 and 147,075, respectively, of performance stock awards for which the performance criteria were not attained at the time and 14,516 and 14,223, respectively, of restricted stock awards which were excluded as their inclusion would have an antidilutive effect. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in accumulated other comprehensive loss by component and related tax impacts for the nine months ended September 30, 2020 were as follows (in thousands): Foreign Currency Translation Unrealized Gains (Losses) on Available-For-Sale Securities Unrealized Loss on Interest Rate Hedge Unfunded Pension Liability Total Balance at January 1, 2020 $ (187,795) $ 143 $ (20,839) $ (1,560) $ (210,051) Other comprehensive (loss) income before reclassifications and tax impacts (15,044) 141 (21,505) — (36,408) Amounts reclassified out of accumulated other comprehensive loss — — 5,696 — 5,696 Tax gain (loss) 1,349 (30) — — 1,319 Other comprehensive (loss) income, net of tax (13,695) 111 (15,809) — (29,393) Balance at September 30, 2020 $ (201,490) $ 254 $ (36,648) $ (1,560) $ (239,444) The amount reclassified out of accumulated other comprehensive loss into the consolidated statement of operations, with presentation location, during the three and nine months ended September 30, 2020 was as follows (in thousands): Other Comprehensive Income (Loss) Components For the Three Months Ended September 30, 2020 For the Nine Months Ended September 30, 2020 Location Unrealized loss on interest rate hedge $ (2,468) $ (5,696) Interest expense, net of interest income |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION On June 3, 2020, our shareholders approved the Clean Harbor's Inc. 2020 Stock Incentive Plan (the "2020 Plan"), which became effective on that date. The 2020 Plan provides for future awards of up to 2.5 million shares of the Company’s common stock (subject to certain anti-dilution adjustments) in the form of stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards. The 2020 Plan is administered by the Compensation Committee of the Company’s Board of Directors. The Company's previous stock incentive plan (the "2010 Plan") expired on May 10, 2020. In connection with the adoption of the 2020 Plan, no further awards will be made under the 2010 Plan. Total stock-based compensation cost charged to selling, general and administrative expenses for the three and nine months ended September 30, 2020 was $6.7 million and $12.7 million, respectively. Total stock-based compensation cost charged to selling, general and administrative expenses for the three and nine months ended September 30, 2019 was $5.0 million and $14.7 million, respectively. The total income tax benefit recognized in the consolidated statements of operations from stock-based compensation expense for the three and nine months ended September 30, 2020 was $1.7 million and $2.9 million, respectively. The total income tax benefit recognized in the consolidated statements of operations from stock-based compensation expense for the three and nine months ended September 30, 2019 was $1.0 million and $2.8 million, respectively. Restricted Stock Awards The following table summarizes information about restricted stock awards for the nine months ended September 30, 2020: Restricted Stock Number of Shares Weighted Average Balance at January 1, 2020 522,597 $ 59.57 Granted 205,548 58.54 Vested (199,476) 57.59 Forfeited (38,515) 58.81 Balance at September 30, 2020 490,154 60.01 As of September 30, 2020, there was $22.0 million of total unrecognized compensation cost arising from restricted stock awards. This cost is expected to be recognized over a weighted average period of 2.8 years value of restricted stock vested during the three and nine months ended September 30, 2019 was $4.2 million and $15.3 million, respectively. Performance Stock Awards Performance stock awards are subject to performance criteria established by the Compensation Committee of the Company's Board of Directors prior to or at the date of grant. The vesting of the performance stock awards is based on achieving targets typically based on revenue, Adjusted EBITDA margin, Adjusted Free Cash Flow and Total Recordable Incident Rate. In addition, performance stock awards include continued service conditions. The following table summarizes information about performance stock awards for the nine months ended September 30, 2020: Performance Stock Number of Shares Weighted Average Balance at January 1, 2020 204,553 $ 64.78 Granted 161,610 58.30 Vested (23,222) 55.75 Forfeited (16,330) 64.59 Balance at September 30, 2020 326,611 62.22 As of September 30, 2020, there was $5.7 million of total unrecognized compensation cost arising from unvested performance stock awards deemed probable of vesting. No performance awards vested during the three months ended September 30, 2020 and September 30, 2019. The total fair value of performance awards vested during the nine months ended September 30, 2020 and September 30, 2019 was $1.3 million and $2.9 million, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company and its subsidiaries are subject to legal proceedings and claims arising in the ordinary course of business. Actions filed against the Company arise from commercial and employment-related claims including alleged class actions related to sales practices and wage and hour claims. The plaintiffs in these actions may be seeking damages or injunctive relief or both. These actions are in various jurisdictions and stages of proceedings, and some are covered in part by insurance. In addition, the Company’s waste management services operations are regulated by federal, state, provincial and local laws enacted to regulate discharge of materials into the environment, remediation of contaminated soil and groundwater or otherwise protect the environment. This ongoing regulation results in the Company frequently becoming a party to legal or administrative proceedings involving all levels of governmental authorities and other interested parties. The issues involved in such proceedings generally relate to alleged violations of existing permits and licenses or alleged responsibility under federal or state Superfund laws to remediate contamination at properties owned either by the Company or by other parties (“third-party sites”) to which either the Company or the prior owners of certain of the Company’s facilities shipped waste. At September 30, 2020 and December 31, 2019, the Company had recorded reserves of $29.9 million and $26.0 million, respectively, in the Company's financial statements for actual or probable liabilities related to the legal and administrative proceedings in which the Company was then involved, the principal of which are described below. In management's opinion, it is not reasonably possible that the potential liability beyond what has been recorded, if any, that may result from these actions, either individually or collectively, will have a material effect on our financial position, results of operations or cash flows. The Company periodically adjusts the aggregate amount of these reserves when actual or probable liabilities are paid or otherwise discharged, new claims arise or additional relevant information about existing or probable claims becomes available. As of September 30, 2020 and December 31, 2019, the $29.9 million and $26.0 million, respectively, of reserves consisted of (i) $24.1 million and $18.4 million, respectively, related to pending legal or administrative proceedings, including Superfund liabilities, which were included in remedial liabilities on the consolidated balance sheets, and (ii) $5.8 million and $7.6 million, respectively, primarily related to federal, state and provincial enforcement actions, which were included in accrued expenses on the consolidated balance sheets. Legal and Administrative Proceedings As of September 30, 2020, the principal legal and administrative proceedings in which the Company was involved, or which had been terminated during 2020, were as follows: Ville Mercier. In September 2002, the Company acquired the stock of a subsidiary (the "Mercier Subsidiary") which owns a hazardous waste incinerator in Ville Mercier, Quebec (the "Mercier Facility"). The property adjacent to the Mercier Facility, which is also owned by the Mercier Subsidiary, is now contaminated as a result of actions dating back to 1968, when the Government of Quebec issued two permits to dump organic liquids into lagoons on the property to a company unrelated to the Mercier Subsidiary. In 1999, Ville Mercier and three neighboring municipalities filed separate legal proceedings against the Mercier Subsidiary and the Government of Quebec. In 2012, the municipalities amended their existing statement of claim to seek $2.9 million (CAD) in general damages and $10.0 million (CAD) in punitive damages, plus interest and costs, as well as injunctive relief. Both the Government of Quebec and the Company have filed summary judgment motions against the municipalities. The parties are attempting to negotiate a resolution and hearings on the motions have been delayed. In September 2007, the Quebec Minister of Sustainable Development, Environment and Parks issued a notice pursuant to Section 115.1 of the Environment Quality Act, superseding notices issued in 1992, which are the subject of the pending litigation. The more recent notice notifies the Mercier Subsidiary that, if the Mercier Subsidiary does not take certain remedial measures at the site, the Minister intends to undertake those measures at the site and claim direct and indirect costs related to such measures. The Company has accrued for costs expected to be incurred relative to the resolution of this matter and believes this matter will not have future material effect on its financial position, results of operations or cash flows. Safety-Kleen Legal Proceedings. On December 28, 2012, the Company acquired Safety-Kleen, Inc. ("Safety-Kleen") and thereby became subject to the legal proceedings in which Safety-Kleen was a party on that date. In addition to certain Superfund proceedings in which Safety-Kleen has been named as a potentially responsible party as described below under “Superfund Proceedings,” the principal such legal proceedings involving Safety-Kleen which were outstanding as of September 30, 2020 were as follows: Product Liability Cases. Safety-Kleen has been named as a defendant in various lawsuits that are currently pending in various courts and jurisdictions throughout the United States, including approximately 69 proceedings (excluding cases which have been settled but not formally dismissed) as of September 30, 2020, wherein persons claim personal injury resulting from the use of Safety-Kleen's parts washer equipment or cleaning products. These proceedings typically involve allegations that the solvent used in Safety-Kleen's parts washer equipment contains contaminants and/or that Safety-Kleen's recycling process does not effectively remove the contaminants that become entrained in the solvent during their use. In addition, certain claimants assert that Safety-Kleen failed to adequately warn the product user of potential risks, including a historic failure to warn that solvent contains trace amounts of toxic or hazardous substances such as benzene. The Company maintains insurance that it believes will provide coverage for these product liability claims (over amounts accrued for self-insured retentions and deductibles in certain limited cases), except for punitive damages to the extent not insurable under state law or excluded from insurance coverage. The Company also believes that these claims lack merit and has historically vigorously defended, and intends to continue to vigorously defend, itself and the safety of its products against all these claims. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. Consequently, the Company is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters as of September 30, 2020. From January 1, 2020 to September 30, 2020, ten product liability claims were settled or dismissed. Due to the nature of these claims and the related insurance, the Company did not incur any expense as insurance provided coverage in full for all such claims. Safety-Kleen may be named in similar, additional lawsuits in the future, including claims for which insurance coverage may not be available. Superfund Proceedings The Company has been notified that either the Company (which, since December 28, 2012, includes Safety-Kleen) or the prior owners of certain of the Company's facilities for which the Company may have certain indemnification obligations have been identified as potentially responsible parties ("PRPs") or potential PRPs in connection with 130 sites which are subject to or are proposed to become subject to proceedings under federal or state Superfund laws. Of the 130 sites, five (including the BR Facility described below) involve facilities that are now owned or leased by the Company and 125 involve third-party sites to which either the Company or the prior owners of certain of the Company’s facilities shipped wastes. Of the 125 third-party sites, 31 are now settled, 15 are currently requiring expenditures on remediation and 79 are not currently requiring expenditures on remediation. In connection with each site, the Company has estimated the extent, if any, to which it may be subject, either directly or as a result of any indemnification obligations, for cleanup and remediation costs, related legal and consulting costs associated with PRP investigations, settlements and related legal and administrative proceedings. The amount of such actual and potential liability is inherently difficult to estimate because of, among other relevant factors, uncertainties as to the legal liability, if any, of the Company or the prior owners of certain of the Company's facilities to contribute a portion of the cleanup costs, the assumptions that must be made in calculating the estimated cost and timing of remediation, the identification of other PRPs and their respective capability and obligation to contribute to remediation efforts and the existence and legal standing of indemnification agreements, if any, with prior owners, which may either benefit the Company or subject the Company to potential indemnification obligations. The Company believes its potential liability could exceed $100,000 at nine of the 125 third-party sites. BR Facility. The Company acquired in 2002 a former hazardous waste incinerator and landfill in Baton Rouge (the "BR Facility"), for which operations had been previously discontinued by the prior owner. In September 2007, the U.S. Environmental Protection Agency ("EPA") issued a special notice letter to the Company related to the Devil's Swamp Lake Site ("Devil's Swamp") in East Baton Rouge Parish, Louisiana. Devil's Swamp includes a lake located downstream of an outfall ditch where wastewater and storm water have been discharged, and Devil's Swamp is proposed to be included on the National Priorities List due to the presence of Contaminants of Concern ("COC") cited by the EPA. These COCs include substances of the kind found in wastewater and storm water discharged from the BR Facility in past operations. The EPA originally requested COC generators to submit a good faith offer to conduct a remedial investigation feasibility study directed towards the eventual remediation of the site. In 2018, the Company completed performing corrective actions at the BR Facility under an order issued by the Louisiana Department of Environmental Quality and has also completed conducting the remedial investigation feasibility study for Devil's Swamp under the order issued by the EPA at which point the feasibility study, with several remedial alternatives, was submitted to the EPA for review. During the quarter ended September 30, 2020, the EPA signed a Record of Decision which defines the remediation alternative selected and approved by the EPA. Based upon this Record of Decision, the Company increased the estimated remedial liability for this inactive site by $3.3 million. As of September 30, 2020, the Company has recorded the best estimate of the costs to execute upon this remediation alternative. Changes in the natural landscape and/or new information identified during the remediation could impact this estimate, however are not expected to have a future material effect on the Company's financial position, liquidity or results of operation. Third-Party Sites. Of the 125 third-party sites at which the Company has been notified it is a PRP or potential PRP or may have indemnification obligations, Clean Harbors has an indemnification agreement at 11 of these sites with ChemWaste, a former subsidiary of Waste Management, Inc., and at six additional of these third-party sites, Safety-Kleen has a similar indemnification agreement with McKesson Corporation. These agreements indemnify the Company (which now includes Safety-Kleen) with respect to any liability at the 17 sites for waste disposed prior to the Company's (or Safety-Kleen's) acquisition of the former subsidiaries of Waste Management and McKesson which had shipped wastes to those sites. Accordingly, Waste Management or McKesson are paying all costs of defending those subsidiaries in those 17 cases, including legal fees and settlement costs. However, there can be no guarantee that the Company's ultimate liabilities for those sites will not exceed the amount recorded or that indemnities applicable to any of these sites will be available to pay all or a portion of related costs. Except for the indemnification agreements which the Company holds from ChemWaste, McKesson and two other entities, the Company does not have an indemnity agreement with respect to any of the 125 third-party sites discussed above. Federal, State and Provincial Enforcement Actions From time to time, the Company pays fines or penalties in regulatory proceedings relating primarily to waste treatment, storage or disposal facilities. As of September 30, 2020 and December 31, 2019, there were 11 and 12 proceedings, respectively, for which the Company reasonably believes that the sanctions could equal or exceed $100,000. The Company believes that the fines or other penalties in these or any of the other regulatory proceedings will, individually or in the aggregate, not have a material effect on its financial condition, results of operations or cash flows. Self-Insurance Liabilities |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Segment reporting is prepared on the same basis that the Company's chief executive officer, who is the Company's chief operating decision maker, manages the business, makes operating decisions and assesses performance. The Company is managed and reports as two operating segments ; (i) the Environmental Services segment and (ii) the Safety-Kleen segment. Third-party revenue is revenue billed to outside customers by a particular segment. Direct revenues is revenue allocated to the segment providing the product or service. Intersegment revenues represent the sharing of third-party revenues among the segments based on products and services provided by each segment as if the products and services were sold directly to the third-party. The intersegment revenues are shown net. The operations not managed through the Company’s operating segments described above are recorded as “Corporate Items.” The following table reconciles third-party revenues to direct revenues for the three and nine months ended September 30, 2020 and September 30, 2019 (in thousands): For the Three Months Ended September 30, 2020 For the Three Months Ended September 30, 2019 Third-party revenues Intersegment revenues, net Corporate Items, net Direct revenues Third-party revenues Intersegment revenues, net Corporate Items, net Direct revenues Environmental Services $ 498,183 $ 29,448 $ 339 $ 527,970 $ 550,122 $ 35,274 $ 1,476 $ 586,872 Safety-Kleen 281,089 (29,448) (1) 251,640 341,417 (35,274) 2 306,145 Corporate Items 72 — (338) (266) 129 — (1,478) (1,349) Total $ 779,344 $ — $ — $ 779,344 $ 891,668 $ — $ — $ 891,668 For the Nine Months Ended September 30, 2020 For the Nine Months Ended September 30, 2019 Third-party revenues Intersegment revenues, net Corporate Items, net Direct revenues Third-party revenues Intersegment revenues, net Corporate Items, net Direct revenues Environmental Services $ 1,490,641 $ 97,782 $ 2,823 $ 1,591,246 $ 1,550,114 $ 105,555 $ 3,301 $ 1,658,970 Safety-Kleen 857,048 (97,782) 142 759,408 990,146 (105,555) 15 884,606 Corporate Items 218 — (2,965) (2,747) 925 — (3,316) (2,391) Total $ 2,347,907 $ — $ — $ 2,347,907 $ 2,541,185 $ — $ — $ 2,541,185 The primary financial measure by which the Company evaluates the performance of its segments is "Adjusted EBITDA," which consists of net income plus accretion of environmental liabilities, depreciation and amortization, net interest expense, loss on early extinguishment of debt, provision for income taxes and other gains, losses or non-cash charges not deemed representative of fundamental segment results and other expense (income), net. Transactions between the segments are accounted for at the Company’s best estimate based on similar transactions with outside customers. The following table presents Adjusted EBITDA information used by management by reported segment (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Adjusted EBITDA: Environmental Services $ 140,854 $ 121,658 $ 387,851 $ 329,036 Safety-Kleen 68,761 81,326 176,498 215,578 Corporate Items (48,444) (46,371) (145,108) (136,513) Total 161,171 156,613 419,241 408,101 Reconciliation to Consolidated Statements of Operations: Accretion of environmental liabilities 2,822 2,490 8,149 7,624 Depreciation and amortization 74,470 73,756 221,497 223,328 Income from operations 83,879 80,367 189,595 177,149 Other (income) expense, net (2,268) 427 597 (1,992) Loss on early extinguishment of debt — 6,119 — 6,119 Loss on sale of businesses 118 — 3,376 — Interest expense, net of interest income 17,407 19,702 54,848 59,681 Income before provision for income taxes $ 68,622 $ 54,119 $ 130,774 $ 113,341 The following table presents certain assets by reportable segment and in the aggregate (in thousands): September 30, 2020 December 31, 2019 Property, plant and equipment, net: Environmental Services $ 890,262 $ 939,352 Safety-Kleen 559,178 555,310 Corporate Items 89,893 93,489 Total property, plant and equipment, net $ 1,539,333 $ 1,588,151 Goodwill and Permits and other intangibles, net: Environmental Services Goodwill $ 211,139 $ 212,531 Permits and other intangibles, net 80,535 89,722 Total Environmental Services 291,674 302,253 Safety-Kleen Goodwill $ 313,122 $ 312,482 Permits and other intangibles, net 311,866 329,344 Total Safety-Kleen 624,988 641,826 Total $ 916,662 $ 944,079 The following table presents the total assets by geographical area (in thousands): September 30, 2020 December 31, 2019 United States $ 3,452,839 $ 3,413,254 Canada and other foreign 653,348 695,650 Total $ 4,106,187 $ 4,108,904 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Revenues | The Company generates revenues through its Environmental Services and Safety-Kleen operating segments. The Company's Environmental Services operating segment generally has the following three sources of revenue: Technical Services —Technical Services revenues are generated from fees charged for waste material management and disposal services including onsite environmental management services, collection and transportation, packaging, recycling, treatment and disposal of waste. Revenue is primarily generated by short-term projects, most of which are governed by master service agreements that are long-term in nature. These master service agreements are typically entered into with the Company's larger customers and outline the pricing and legal frameworks for such arrangements. Services are provided based on purchase orders or agreements with the customer and include prices based upon units of volume of waste and transportation and other fees. Collection and transportation revenues are recognized over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. Revenues for treatment and disposal of waste are recognized upon completion of treatment, final disposition in a landfill or incineration, or when the waste is shipped to a third party for processing and disposal. The Company periodically enters into bundled arrangements for the collection and transportation and disposal of waste. For such arrangements, transportation and disposal are considered distinct performance obligations and the Company allocates revenue to each based on the relative standalone selling price (i.e., the estimated price that a customer would pay for the services on a standalone basis). Revenues from waste that is not yet completely processed and disposed and the related costs are deferred. The deferred revenues and costs are recognized when the related services are completed. The period between collection and transportation and the final processing and disposal ranges depending on the location of the customer, but generally is measured in days. Field and Emergency Response Services —Field Services revenues are generated from cleanup services at customer sites, including municipalities and utilities, or other locations on a scheduled or emergency response basis. Services include confined space entry for tank cleaning, site decontamination, large remediation projects, demolition, spill cleanup on land and water, railcar cleaning, product recovery and transfer and vacuum services. Additional services include filtration and water treatment services. Response services for environmental, contamination or pandemic related emergencies include any scale from man-made disasters such as oil spills, to natural disasters such as hurricanes. More recently demand has increased for projects involving contagion disinfection, decontamination and disposal services in response to the COVID-19 pandemic. Field and emergency response services are provided based on purchase orders or agreements with customers and include prices generally based upon daily, hourly or job rates for equipment, materials and personnel. The Company recognizes revenue for these services over time, as the customer receives and consumes the benefits of the service as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. The duration of such services can be over a number of hours, several days or even months for larger scale projects. Industrial Services and Other —Industrial Services revenues are primarily generated from industrial and specialty services provided to refineries, mines, upgraders, chemical plants, pulp and paper mills, manufacturing facilities, power generation facilities and other industrial customers throughout North America. Services include in-plant cleaning and maintenance services, plant outage and turnaround services, decoking and pigging, chemical cleaning, high and ultra-high pressure water cleaning, pipeline inspection and coating services, large tank and surface impoundment cleaning, oilfield transport, daylighting, production services and upstream energy services, such as exploration and drilling for industrial oil and gas customers. Services are provided based on purchase orders or agreements with the customer and include prices based upon daily, hourly or job rates for equipment, materials and personnel. The Company recognizes revenue for these services over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. The Company's Safety-Kleen operating segment generally has the following two sources of revenue: Safety-Kleen Environmental Services —Safety-Kleen Environmental Services revenues are generated from providing parts washer services, containerized waste handling and disposal services, oil collection services, vacuum services, direct sales of blended oil products and other complementary services and product sales. Containerized waste services consist of profiling, collecting, transporting and recycling or disposing of a wide variety of waste. Other products and services include sale of complementary supply products including automotive fluids and shop supplies and other environmental services. Parts washer services include customer use of our parts washer equipment, cleaning and maintenance of the parts washer equipment and removal and replacement of used cleaning fluids. Parts washer services are considered a single performance obligation due to the highly integrated and interdependent nature of the arrangement. Revenue from parts washer services is recognized over the service interval as the customer receives the benefit of the services. Collection and transportation revenues are recognized over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. Product revenue is recognized upon the transfer of control whereby control transfers when the products are delivered to the customer. Safety-Kleen Oil —Revenues from Safety-Kleen Oil are generated from sales of high-quality base and blended lubricating oils to third-party distributors, government agencies, fleets, railroads and industrial customers. The business also sells recycled fuel oil to asphalt plants, industrial plants and pulp and paper companies. The used oil is also processed into vacuum gas oil which can be |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | We disaggregate the Company's third party revenues by geographic location and source of revenue as we believe these categories depict how revenue and cash flows are affected by economic factors (in thousands): For the Three Months Ended September 30, 2020 Environmental Services Safety-Kleen Corporate Total Primary Geographical Markets United States $ 409,787 $ 257,048 $ (186) $ 666,649 Canada 88,396 24,041 258 112,695 Total third-party revenues $ 498,183 $ 281,089 $ 72 $ 779,344 Sources of Revenue (1) Technical Services $ 257,612 $ — $ — $ 257,612 Field and Emergency Response Services 115,989 — — 115,989 Industrial Services and Other 124,582 — 72 124,654 Safety-Kleen Environmental Services — 203,455 — 203,455 Safety-Kleen Oil — 77,634 — 77,634 Total third-party revenues $ 498,183 $ 281,089 $ 72 $ 779,344 For the Three Months Ended September 30, 2019 Environmental Services Safety-Kleen Corporate Total Primary Geographical Markets United States $ 450,638 $ 313,979 $ (265) $ 764,352 Canada 99,484 27,438 394 127,316 Total third-party revenues $ 550,122 $ 341,417 $ 129 $ 891,668 Sources of Revenue (1) Technical Services $ 292,506 $ — $ — $ 292,506 Field and Emergency Response Services 95,546 — — 95,546 Industrial Services and Other (2) 162,070 — 129 162,199 Safety-Kleen Environmental Services — 217,439 — 217,439 Safety-Kleen Oil — 123,978 — 123,978 Total third-party revenues $ 550,122 $ 341,417 $ 129 $ 891,668 For the Nine Months Ended September 30, 2020 Environmental Services Safety-Kleen Corporate Total Primary Geographical Markets United States $ 1,253,252 $ 791,919 $ (648) $ 2,044,523 Canada 237,389 65,129 866 303,384 Total third-party revenues $ 1,490,641 $ 857,048 $ 218 $ 2,347,907 Sources of Revenue (1) Technical Services $ 774,814 $ — $ — $ 774,814 Field and Emergency Response Services 349,254 — — 349,254 Industrial Services and Other 366,573 — 218 366,791 Safety-Kleen Environmental Services — 612,808 — 612,808 Safety-Kleen Oil — 244,240 — 244,240 Total third-party revenues $ 1,490,641 $ 857,048 $ 218 $ 2,347,907 For the Nine Months Ended September 30, 2019 Environmental Services Safety-Kleen Corporate Total Primary Geographical Markets United States $ 1,270,556 $ 917,240 $ 531 $ 2,188,327 Canada 279,558 72,906 394 352,858 Total third-party revenues $ 1,550,114 $ 990,146 $ 925 $ 2,541,185 Sources of Revenue (1) Technical Services $ 820,333 $ — $ — $ 820,333 Field and Emergency Response Services 253,894 — — 253,894 Industrial Services and Other (2) 475,887 — 925 476,812 Safety-Kleen Environmental Services — 640,956 — 640,956 Safety-Kleen Oil — 349,190 — 349,190 Total third-party revenues $ 1,550,114 $ 990,146 $ 925 $ 2,541,185 ________________ (1) All revenue except oil and oil product sales within Safety-Kleen Oil and product sales within Safety-Kleen Environmental Services, which include various automotive related fluids, shop supplies and direct blended oil sales, are recognized over time. Safety-Kleen Oil and Safety-Kleen Environmental Services product sales are recognized at a point in time. (2) Third-party revenues previously reported as Oil, Gas and Lodging Services of $30.2 million and Other of $0.1 million for the three months ended September 30, 2019, respectively, and $91.9 million and $0.9 million, respectively for the nine months ended September 30, 2019, are now disclosed within Industrial Services and Other based on relative materiality to the business. |
Schedule of Contract Balances | (in thousands) September 30, 2020 December 31, 2019 Receivables $ 602,069 $ 644,738 Contract assets (unbilled receivables) 59,438 56,326 Contract liabilities (deferred revenue) 67,412 73,370 |
INVENTORIES AND SUPPLIES (Table
INVENTORIES AND SUPPLIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories and supplies consisted of the following (in thousands): September 30, 2020 December 31, 2019 Oil and oil related products $ 77,808 $ 75,408 Supplies and drums 119,157 115,128 Solvent and solutions 10,290 9,973 Other 13,629 14,235 Total inventories and supplies $ 220,884 $ 214,744 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands): September 30, 2020 December 31, 2019 Land $ 139,184 $ 131,023 Asset retirement costs (non-landfill) 16,185 15,924 Landfill assets 185,678 182,276 Buildings and improvements (1) 502,507 499,159 Camp equipment 154,427 158,277 Vehicles (2) 819,583 785,056 Equipment (3) 1,798,792 1,779,366 Furniture and fixtures 6,920 6,054 Construction in progress 20,928 36,679 3,644,204 3,593,814 Less - accumulated depreciation and amortization 2,104,871 2,005,663 Total property, plant and equipment, net $ 1,539,333 $ 1,588,151 ________________ (1) Balances inclusive of gross right-of-use ("ROU") assets classified as finance leases of $8.0 million and $31.0 million, respectively. (2) Balances inclusive of gross ROU assets classified as finance leases of $43.8 million and $2.4 million, respectively. (3) September 30, 2020 balance inclusive of gross ROU assets classified as finance leases of $9.1 million . |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The changes in goodwill by segment for the nine months ended September 30, 2020 were as follows (in thousands): Environmental Services Safety-Kleen Totals Balance at January 1, 2020 $ 212,531 $ 312,482 $ 525,013 Increase from current period acquisition — 1,440 1,440 Measurement period adjustments from prior period acquisitions 23 — 23 Decrease from disposition of businesses (674) — (674) Foreign currency translation (741) (800) (1,541) Balance at September 30, 2020 $ 211,139 $ 313,122 $ 524,261 |
Summary of Indefinite-Lived Intangible Assets | As of September 30, 2020 and December 31, 2019, the Company's intangible assets consisted of the following (in thousands): September 30, 2020 December 31, 2019 Cost Accumulated Net Cost Accumulated Net Permits $ 182,478 $ 92,725 $ 89,753 $ 184,235 $ 87,228 $ 97,007 Customer and supplier relationships 388,862 213,700 175,162 401,696 207,884 193,812 Other intangible assets 38,153 33,334 4,819 38,331 33,018 5,313 Total amortizable permits and other intangible assets 609,493 339,759 269,734 624,262 328,130 296,132 Trademarks and trade names 122,667 — 122,667 122,934 — 122,934 Total permits and other intangible assets $ 732,160 $ 339,759 $ 392,401 $ 747,196 $ 328,130 $ 419,066 |
Schedule of Finite-Lived Intangible Assets | As of September 30, 2020 and December 31, 2019, the Company's intangible assets consisted of the following (in thousands): September 30, 2020 December 31, 2019 Cost Accumulated Net Cost Accumulated Net Permits $ 182,478 $ 92,725 $ 89,753 $ 184,235 $ 87,228 $ 97,007 Customer and supplier relationships 388,862 213,700 175,162 401,696 207,884 193,812 Other intangible assets 38,153 33,334 4,819 38,331 33,018 5,313 Total amortizable permits and other intangible assets 609,493 339,759 269,734 624,262 328,130 296,132 Trademarks and trade names 122,667 — 122,667 122,934 — 122,934 Total permits and other intangible assets $ 732,160 $ 339,759 $ 392,401 $ 747,196 $ 328,130 $ 419,066 |
Schedule of Expected Amortization for the Net Carrying Amount of Finite Lived Intangible Assets | The expected amortization of the net carrying amount of finite-lived intangible assets at September 30, 2020 was as follows (in thousands): Years Ending December 31, Expected Amortization 2020 (three months) $ 7,841 2021 29,997 2022 29,742 2023 25,482 2024 23,997 Thereafter 152,675 $ 269,734 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): September 30, 2020 December 31, 2019 Accrued insurance $ 77,985 $ 74,376 Accrued interest 9,179 21,222 Accrued compensation and benefits 60,784 72,473 Accrued income, real estate, sales and other taxes 54,677 35,749 Interest rate swap liability 36,649 20,840 Accrued other 53,926 51,880 $ 293,200 $ 276,540 |
CLOSURE AND POST-CLOSURE LIAB_2
CLOSURE AND POST-CLOSURE LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Closure and Post-Closure Liabilities | The changes to closure and post-closure liabilities (also referred to as “asset retirement obligations”) from January 1, 2020 through September 30, 2020 were as follows (in thousands): Landfill Non-Landfill Total Balance at January 1, 2020 $ 39,401 $ 36,250 $ 75,651 Liabilities assumed in acquisitions — 265 265 New asset retirement obligations 1,643 — 1,643 Accretion 2,373 2,516 4,889 Changes in estimates recorded to statement of operations 4,503 (14) 4,489 Changes in estimates recorded to balance sheet 179 15 194 Expenditures (2,116) (622) (2,738) Currency translation and other (133) (44) (177) Balance at September 30, 2020 $ 45,850 $ 38,366 $ 84,216 |
REMEDIAL LIABILITIES (Tables)
REMEDIAL LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Changes to Remedial Liabilities | The changes to remedial liabilities from January 1, 2020 through September 30, 2020 were as follows (in thousands): Remedial Remedial Remedial Total Balance at January 1, 2020 $ 1,851 $ 61,991 $ 50,331 $ 114,173 Accretion 67 1,914 1,279 3,260 Changes in estimates recorded to statement of operations (14) 3,023 1,552 4,561 Expenditures (46) (3,278) (2,754) (6,078) Currency translation and other — (912) 563 (349) Balance at September 30, 2020 $ 1,858 $ 62,738 $ 50,971 $ 115,567 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of the Entity's Financial Arrangements | The following table is a summary of the Company’s financing arrangements (in thousands): Current Obligations: September 30, 2020 December 31, 2019 Secured senior term loans ("Term Loans") $ 7,535 $ 7,535 Long-Term Obligations: Secured senior Term Loans due June 30, 2024 $ 721,510 $ 727,162 Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes") 545,000 545,000 Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes") 300,000 300,000 Long-term obligations, at par $ 1,566,510 $ 1,572,162 Unamortized debt issuance costs and premium, net (15,754) (18,046) Long-term obligations, at carrying value $ 1,550,756 $ 1,554,116 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted Earnings per Share Computations | The following are computations of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator for basic and diluted earnings per share: Net income $ 54,910 $ 36,369 $ 95,505 $ 73,589 Denominator: Basic shares outstanding 55,592 55,850 55,646 55,858 Dilutive effect of outstanding stock awards 146 315 186 251 Dilutive shares outstanding 55,738 56,165 55,832 56,109 Basic earnings per share: $ 0.99 $ 0.65 $ 1.72 $ 1.32 Diluted earnings per share: $ 0.99 $ 0.65 $ 1.71 $ 1.31 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss by component and related tax impacts for the nine months ended September 30, 2020 were as follows (in thousands): Foreign Currency Translation Unrealized Gains (Losses) on Available-For-Sale Securities Unrealized Loss on Interest Rate Hedge Unfunded Pension Liability Total Balance at January 1, 2020 $ (187,795) $ 143 $ (20,839) $ (1,560) $ (210,051) Other comprehensive (loss) income before reclassifications and tax impacts (15,044) 141 (21,505) — (36,408) Amounts reclassified out of accumulated other comprehensive loss — — 5,696 — 5,696 Tax gain (loss) 1,349 (30) — — 1,319 Other comprehensive (loss) income, net of tax (13,695) 111 (15,809) — (29,393) Balance at September 30, 2020 $ (201,490) $ 254 $ (36,648) $ (1,560) $ (239,444) |
Schedule of Reclassification Out of Accumulated Other Comprehensive Income | The amount reclassified out of accumulated other comprehensive loss into the consolidated statement of operations, with presentation location, during the three and nine months ended September 30, 2020 was as follows (in thousands): Other Comprehensive Income (Loss) Components For the Three Months Ended September 30, 2020 For the Nine Months Ended September 30, 2020 Location Unrealized loss on interest rate hedge $ (2,468) $ (5,696) Interest expense, net of interest income |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Awards | The following table summarizes information about restricted stock awards for the nine months ended September 30, 2020: Restricted Stock Number of Shares Weighted Average Balance at January 1, 2020 522,597 $ 59.57 Granted 205,548 58.54 Vested (199,476) 57.59 Forfeited (38,515) 58.81 Balance at September 30, 2020 490,154 60.01 |
Schedule of Performance Stock Awards | The following table summarizes information about performance stock awards for the nine months ended September 30, 2020: Performance Stock Number of Shares Weighted Average Balance at January 1, 2020 204,553 $ 64.78 Granted 161,610 58.30 Vested (23,222) 55.75 Forfeited (16,330) 64.59 Balance at September 30, 2020 326,611 62.22 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table reconciles third-party revenues to direct revenues for the three and nine months ended September 30, 2020 and September 30, 2019 (in thousands): For the Three Months Ended September 30, 2020 For the Three Months Ended September 30, 2019 Third-party revenues Intersegment revenues, net Corporate Items, net Direct revenues Third-party revenues Intersegment revenues, net Corporate Items, net Direct revenues Environmental Services $ 498,183 $ 29,448 $ 339 $ 527,970 $ 550,122 $ 35,274 $ 1,476 $ 586,872 Safety-Kleen 281,089 (29,448) (1) 251,640 341,417 (35,274) 2 306,145 Corporate Items 72 — (338) (266) 129 — (1,478) (1,349) Total $ 779,344 $ — $ — $ 779,344 $ 891,668 $ — $ — $ 891,668 For the Nine Months Ended September 30, 2020 For the Nine Months Ended September 30, 2019 Third-party revenues Intersegment revenues, net Corporate Items, net Direct revenues Third-party revenues Intersegment revenues, net Corporate Items, net Direct revenues Environmental Services $ 1,490,641 $ 97,782 $ 2,823 $ 1,591,246 $ 1,550,114 $ 105,555 $ 3,301 $ 1,658,970 Safety-Kleen 857,048 (97,782) 142 759,408 990,146 (105,555) 15 884,606 Corporate Items 218 — (2,965) (2,747) 925 — (3,316) (2,391) Total $ 2,347,907 $ — $ — $ 2,347,907 $ 2,541,185 $ — $ — $ 2,541,185 The following table presents certain assets by reportable segment and in the aggregate (in thousands): September 30, 2020 December 31, 2019 Property, plant and equipment, net: Environmental Services $ 890,262 $ 939,352 Safety-Kleen 559,178 555,310 Corporate Items 89,893 93,489 Total property, plant and equipment, net $ 1,539,333 $ 1,588,151 Goodwill and Permits and other intangibles, net: Environmental Services Goodwill $ 211,139 $ 212,531 Permits and other intangibles, net 80,535 89,722 Total Environmental Services 291,674 302,253 Safety-Kleen Goodwill $ 313,122 $ 312,482 Permits and other intangibles, net 311,866 329,344 Total Safety-Kleen 624,988 641,826 Total $ 916,662 $ 944,079 |
Schedule of Reconciliation to Consolidated Statements of Income from Adjusted EBITDA | The following table presents Adjusted EBITDA information used by management by reported segment (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Adjusted EBITDA: Environmental Services $ 140,854 $ 121,658 $ 387,851 $ 329,036 Safety-Kleen 68,761 81,326 176,498 215,578 Corporate Items (48,444) (46,371) (145,108) (136,513) Total 161,171 156,613 419,241 408,101 Reconciliation to Consolidated Statements of Operations: Accretion of environmental liabilities 2,822 2,490 8,149 7,624 Depreciation and amortization 74,470 73,756 221,497 223,328 Income from operations 83,879 80,367 189,595 177,149 Other (income) expense, net (2,268) 427 597 (1,992) Loss on early extinguishment of debt — 6,119 — 6,119 Loss on sale of businesses 118 — 3,376 — Interest expense, net of interest income 17,407 19,702 54,848 59,681 Income before provision for income taxes $ 68,622 $ 54,119 $ 130,774 $ 113,341 |
Schedule of Total Assets by Geographical Area | The following table presents the total assets by geographical area (in thousands): September 30, 2020 December 31, 2019 United States $ 3,452,839 $ 3,413,254 Canada and other foreign 653,348 695,650 Total $ 4,106,187 $ 4,108,904 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||
Benefit amount under CARES Act and CEWS | $ 13.3 | $ 36.7 |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 779,344 | $ 891,668 | $ 2,347,907 | $ 2,541,185 |
Technical Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 257,612 | 292,506 | 774,814 | 820,333 |
Field and Emergency Response Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 115,989 | 95,546 | 349,254 | 253,894 |
Industrial Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 124,654 | 162,199 | 366,791 | 476,812 |
Safety-Kleen Environmental Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 203,455 | 217,439 | 612,808 | 640,956 |
Safety-Kleen Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 77,634 | 123,978 | 244,240 | 349,190 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 666,649 | 764,352 | 2,044,523 | 2,188,327 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 112,695 | 127,316 | 303,384 | 352,858 |
Environmental Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 527,970 | 586,872 | 1,591,246 | 1,658,970 |
Safety-Kleen | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 251,640 | 306,145 | 759,408 | 884,606 |
Operating segments | Environmental Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 498,183 | 550,122 | 1,490,641 | 1,550,114 |
Operating segments | Environmental Services | Technical Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 257,612 | 292,506 | 774,814 | 820,333 |
Operating segments | Environmental Services | Field and Emergency Response Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 115,989 | 95,546 | 349,254 | 253,894 |
Operating segments | Environmental Services | Industrial Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 124,582 | 162,070 | 366,573 | 475,887 |
Operating segments | Environmental Services | Safety-Kleen Environmental Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | Environmental Services | Safety-Kleen Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | Environmental Services | Oil, Gas and Lodging Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 30,200 | 91,900 | ||
Operating segments | Environmental Services | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 409,787 | 450,638 | 1,253,252 | 1,270,556 |
Operating segments | Environmental Services | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 88,396 | 99,484 | 237,389 | 279,558 |
Operating segments | Safety-Kleen | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 281,089 | 341,417 | 857,048 | 990,146 |
Operating segments | Safety-Kleen | Technical Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | Safety-Kleen | Field and Emergency Response Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | Safety-Kleen | Industrial Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | Safety-Kleen | Safety-Kleen Environmental Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 203,455 | 217,439 | 612,808 | 640,956 |
Operating segments | Safety-Kleen | Safety-Kleen Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 77,634 | 123,978 | 244,240 | 349,190 |
Operating segments | Safety-Kleen | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 257,048 | 313,979 | 791,919 | 917,240 |
Operating segments | Safety-Kleen | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 24,041 | 27,438 | 65,129 | 72,906 |
Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 72 | 129 | 218 | 925 |
Corporate | Technical Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Corporate | Field and Emergency Response Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Corporate | Industrial Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 72 | 129 | 218 | 925 |
Corporate | Safety-Kleen Environmental Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Corporate | Safety-Kleen Oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Corporate | Oil, Gas and Lodging Services and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 100 | 900 | ||
Corporate | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (186) | (265) | (648) | 531 |
Corporate | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 258 | $ 394 | $ 866 | $ 394 |
REVENUES - Contract Balances (D
REVENUES - Contract Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 602,069 | $ 644,738 |
Contract assets (unbilled receivables) | 59,438 | 56,326 |
Contract liabilities (deferred revenue) | $ 67,412 | $ 73,370 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract liability, recognition period | 3 months |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Apr. 17, 2020 | May 31, 2019 | Mar. 01, 2019 | Sep. 30, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill recognized | $ 1,440 | |||
2020 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 8,800 | |||
Goodwill recognized | $ 1,400 | |||
2019 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 14,800 | $ 10,400 | ||
Goodwill recognized | $ 7,400 | $ 5,200 |
INVENTORIES AND SUPPLIES (Detai
INVENTORIES AND SUPPLIES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Oil and oil related products | $ 77,808 | $ 75,408 |
Supplies and drums | 119,157 | 115,128 |
Solvent and solutions | 10,290 | 9,973 |
Other | 13,629 | 14,235 |
Total inventories and supplies | $ 220,884 | $ 214,744 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,644,204 | $ 3,593,814 |
Less - accumulated depreciation and amortization | 2,104,871 | 2,005,663 |
Total property, plant and equipment, net | 1,539,333 | 1,588,151 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 139,184 | 131,023 |
Asset retirement costs (non-landfill) | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 16,185 | 15,924 |
Landfill assets | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 185,678 | 182,276 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 502,507 | 499,159 |
Right-of-Use assets, finance leases | 8,000 | 31,000 |
Camp equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 154,427 | 158,277 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 819,583 | 785,056 |
Right-of-Use assets, finance leases | 43,800 | 2,400 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,798,792 | 1,779,366 |
Right-of-Use assets, finance leases | 9,100 | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,920 | 6,054 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 20,928 | $ 36,679 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation inclusive of amortization | $ 64.9 | $ 65.3 | $ 193.9 | $ 196.7 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Rollforward of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance at January 1, 2020 | $ 525,013 |
Increase from current period acquisition | 1,440 |
Measurement period adjustments from prior period acquisitions | 23 |
Decrease from disposition of businesses | (674) |
Foreign currency translation | (1,541) |
Balance at September 30, 2020 | 524,261 |
Environmental Services | |
Goodwill [Roll Forward] | |
Balance at January 1, 2020 | 212,531 |
Increase from current period acquisition | 0 |
Measurement period adjustments from prior period acquisitions | 23 |
Decrease from disposition of businesses | (674) |
Foreign currency translation | (741) |
Balance at September 30, 2020 | 211,139 |
Safety-Kleen | |
Goodwill [Roll Forward] | |
Balance at January 1, 2020 | 312,482 |
Increase from current period acquisition | 1,440 |
Measurement period adjustments from prior period acquisitions | 0 |
Decrease from disposition of businesses | 0 |
Foreign currency translation | (800) |
Balance at September 30, 2020 | $ 313,122 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortizable Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, cost | $ 609,493 | $ 624,262 |
Accumulated Amortization | 339,759 | 328,130 |
Finite-lived intangible assets, net | 269,734 | 296,132 |
Total permits and other intangible assets, Cost | 732,160 | 747,196 |
Total permits and other intangible assets, Net | 392,401 | 419,066 |
Trademarks and trade names | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks and trade names | 122,667 | 122,934 |
Permits | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, cost | 182,478 | 184,235 |
Accumulated Amortization | 92,725 | 87,228 |
Finite-lived intangible assets, net | 89,753 | 97,007 |
Customer and supplier relationships | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, cost | 388,862 | 401,696 |
Accumulated Amortization | 213,700 | 207,884 |
Finite-lived intangible assets, net | 175,162 | 193,812 |
Other intangible assets | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, cost | 38,153 | 38,331 |
Accumulated Amortization | 33,334 | 33,018 |
Finite-lived intangible assets, net | $ 4,819 | $ 5,313 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of permits and other intangible assets | $ 9.6 | $ 8.4 | $ 27.6 | $ 26.6 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Expected Future Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 (three months) | $ 7,841 | |
2021 | 29,997 | |
2022 | 29,742 | |
2023 | 25,482 | |
2024 | 23,997 | |
Thereafter | 152,675 | |
Finite-lived intangible assets, net | $ 269,734 | $ 296,132 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued insurance | $ 77,985 | $ 74,376 |
Accrued interest | 9,179 | 21,222 |
Accrued compensation and benefits | 60,784 | 72,473 |
Accrued income, real estate, sales and other taxes | 54,677 | 35,749 |
Interest rate swap liability | 36,649 | 20,840 |
Accrued other | 53,926 | 51,880 |
Total accrued expenses | $ 293,200 | $ 276,540 |
CLOSURE AND POST-CLOSURE LIAB_3
CLOSURE AND POST-CLOSURE LIABILITIES (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)facility | |
Changes to post-closure liabilities | |
Balance at January 1, 2020 | $ 75,651 |
Liabilities assumed in acquisitions | 265 |
New asset retirement obligations | 1,643 |
Accretion | 4,889 |
Changes in estimates recorded to statement of operations | 4,489 |
Changes in estimates recorded to balance sheet | 194 |
Expenditures | (2,738) |
Currency translation and other | (177) |
Balance at September 30, 2020 | $ 84,216 |
Number of active landfill facilities | facility | 10 |
Credit-adjusted risk-free rate | 5.60% |
Landfill Retirement Liability | |
Changes to post-closure liabilities | |
Balance at January 1, 2020 | $ 39,401 |
Liabilities assumed in acquisitions | 0 |
New asset retirement obligations | 1,643 |
Accretion | 2,373 |
Changes in estimates recorded to statement of operations | 4,503 |
Changes in estimates recorded to balance sheet | 179 |
Expenditures | (2,116) |
Currency translation and other | (133) |
Balance at September 30, 2020 | 45,850 |
Non-Landfill Retirement Liability | |
Changes to post-closure liabilities | |
Balance at January 1, 2020 | 36,250 |
Liabilities assumed in acquisitions | 265 |
New asset retirement obligations | 0 |
Accretion | 2,516 |
Changes in estimates recorded to statement of operations | (14) |
Changes in estimates recorded to balance sheet | 15 |
Expenditures | (622) |
Currency translation and other | (44) |
Balance at September 30, 2020 | $ 38,366 |
REMEDIAL LIABILITIES (Details)
REMEDIAL LIABILITIES (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Balance at January 1, 2020 | $ 114,173 |
Accretion | 3,260 |
Changes in estimates recorded to statement of operations | 4,561 |
Expenditures | (6,078) |
Currency translation and other | (349) |
Balance at September 30, 2020 | 115,567 |
Remedial Liabilities for Landfill Sites | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Balance at January 1, 2020 | 1,851 |
Accretion | 67 |
Changes in estimates recorded to statement of operations | (14) |
Expenditures | (46) |
Currency translation and other | 0 |
Balance at September 30, 2020 | 1,858 |
Remedial Liabilities for Inactive Sites | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Balance at January 1, 2020 | 61,991 |
Accretion | 1,914 |
Changes in estimates recorded to statement of operations | 3,023 |
Expenditures | (3,278) |
Currency translation and other | (912) |
Balance at September 30, 2020 | 62,738 |
Increase of remedial liabilities | 3,300 |
Remedial Liabilities (Including Superfund) for Non-Landfill Operations | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Balance at January 1, 2020 | 50,331 |
Accretion | 1,279 |
Changes in estimates recorded to statement of operations | 1,552 |
Expenditures | (2,754) |
Currency translation and other | 563 |
Balance at September 30, 2020 | 50,971 |
Remedial Liabilities for a Superfund site | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Increase of remedial liabilities | $ 1,800 |
FINANCING ARRANGEMENTS - Summar
FINANCING ARRANGEMENTS - Summary of Financing Arrangements (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Current portion of long-term obligations | $ 7,535 | $ 7,535 |
Long-term obligations | 1,566,510 | 1,572,162 |
Unamortized debt issuance costs and premium, net | (15,754) | (18,046) |
Long-term obligations, at carrying value | 1,550,756 | 1,554,116 |
Secured debt | Term Loan Agreement | ||
Debt Instrument [Line Items] | ||
Current portion of long-term obligations | 7,535 | 7,535 |
Long-term obligations | 721,510 | 727,162 |
Unsecured debt | Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes") | ||
Debt Instrument [Line Items] | ||
Long-term obligations | $ 545,000 | $ 545,000 |
Interest rate (as a percentage) | 4.875% | 4.875% |
Unsecured debt | Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes") | ||
Debt Instrument [Line Items] | ||
Long-term obligations | $ 300,000 | $ 300,000 |
Interest rate (as a percentage) | 5.125% | 5.125% |
FINANCING ARRANGEMENTS - Narrat
FINANCING ARRANGEMENTS - Narrative (Details) - USD ($) | Jul. 28, 2020 | Jun. 29, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||||
Debt fair value | $ 1,600,000,000 | $ 1,600,000,000 | ||||
Borrowing from revolving credit facility | 150,000,000 | $ 0 | ||||
Repayments of borrowings | 150,000,000 | $ 0 | ||||
Available to borrow and outstanding letters of credit | 249,100,000 | 229,200,000 | ||||
Outstanding letters of credit | $ 123,500,000 | 146,900,000 | ||||
Effective interest rate percentage | 4.67% | |||||
Interest rate swap, liability | $ 36,600,000 | $ 20,800,000 | ||||
Interest Rate Swap | ||||||
Debt Instrument [Line Items] | ||||||
Notional amount of interest rate swap agreements | $ 350,000,000 | |||||
Interest rate percentage | 2.92% | |||||
Term Loans with Interest Rate Swap Agreements | ||||||
Debt Instrument [Line Items] | ||||||
Debt outstanding | $ 350,000,000 | |||||
Revolving Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | $ 400,000,000 | |||||
Borrowing from revolving credit facility | $ 150,000,000 | |||||
Repayments of borrowings | $ 75,000,000 | $ 75,000,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 20.00% | 32.80% | 27.00% | 35.10% | |
Unrecognized tax benefits | $ 5.2 | $ 5.2 | $ 6.4 | ||
Interest on unrecognized tax benefits | 1.9 | $ 1.9 | $ 1.7 | ||
Released amount of uncertain tax positions during the period | 1.1 | ||||
Income tax refund received | $ 7.7 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator for basic and diluted earnings per share: | ||||||||
Net income | $ 54,910 | $ 29,023 | $ 11,572 | $ 36,369 | $ 36,244 | $ 976 | $ 95,505 | $ 73,589 |
Denominator: | ||||||||
Basic shares outstanding (in shares) | 55,592 | 55,850 | 55,646 | 55,858 | ||||
Dilutive effect of outstanding stock awards (in shares) | 146 | 315 | 186 | 251 | ||||
Dilutive shares outstanding (in shares) | 55,738 | 56,165 | 55,832 | 56,109 | ||||
Basic earnings per share (in USD per share) | $ 0.99 | $ 0.65 | $ 1.72 | $ 1.32 | ||||
Diluted earnings per share (in USD per share) | $ 0.99 | $ 0.65 | $ 1.71 | $ 1.31 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Performance stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earning per share (in shares) | 235,806 | 147,075 | 235,806 | 147,075 |
Restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earning per share (in shares) | 16,183 | 3,567 | 14,516 | 14,223 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Components of Other Accumulated Income, Net of Tax [Roll Forward] | ||||||||
Balance beginning of period | $ 1,253,971 | $ 1,205,805 | $ 1,269,813 | $ 1,209,467 | $ 1,171,965 | $ 1,169,756 | $ 1,269,813 | $ 1,169,756 |
Other comprehensive (loss) income before reclassifications and tax impacts | (36,408) | |||||||
Amounts reclassified out of accumulated other comprehensive loss | 5,696 | |||||||
Tax gain (loss) | 1,319 | |||||||
Other comprehensive income (loss), net of tax | 12,385 | 17,528 | (59,306) | (9,419) | 5,076 | 4,024 | (29,393) | (319) |
Balance ending of period | 1,304,715 | 1,253,971 | 1,205,805 | 1,235,795 | 1,209,467 | 1,171,965 | 1,304,715 | 1,235,795 |
Foreign Currency Translation | ||||||||
Components of Other Accumulated Income, Net of Tax [Roll Forward] | ||||||||
Balance beginning of period | (187,795) | (187,795) | ||||||
Other comprehensive (loss) income before reclassifications and tax impacts | (15,044) | |||||||
Amounts reclassified out of accumulated other comprehensive loss | 0 | |||||||
Tax gain (loss) | 1,349 | |||||||
Other comprehensive income (loss), net of tax | (13,695) | |||||||
Balance ending of period | (201,490) | (201,490) | ||||||
Unrealized Gains (Losses) on Available-For-Sale Securities | ||||||||
Components of Other Accumulated Income, Net of Tax [Roll Forward] | ||||||||
Balance beginning of period | 143 | 143 | ||||||
Other comprehensive (loss) income before reclassifications and tax impacts | 141 | |||||||
Amounts reclassified out of accumulated other comprehensive loss | 0 | |||||||
Tax gain (loss) | (30) | |||||||
Other comprehensive income (loss), net of tax | 111 | |||||||
Balance ending of period | 254 | 254 | ||||||
Unrealized Loss on Interest Rate Hedge | ||||||||
Components of Other Accumulated Income, Net of Tax [Roll Forward] | ||||||||
Balance beginning of period | (20,839) | (20,839) | ||||||
Other comprehensive (loss) income before reclassifications and tax impacts | (21,505) | |||||||
Amounts reclassified out of accumulated other comprehensive loss | 5,696 | |||||||
Tax gain (loss) | 0 | |||||||
Other comprehensive income (loss), net of tax | (15,809) | |||||||
Balance ending of period | (36,648) | (36,648) | ||||||
Unfunded Pension Liability | ||||||||
Components of Other Accumulated Income, Net of Tax [Roll Forward] | ||||||||
Balance beginning of period | (1,560) | (1,560) | ||||||
Other comprehensive (loss) income before reclassifications and tax impacts | 0 | |||||||
Amounts reclassified out of accumulated other comprehensive loss | 0 | |||||||
Tax gain (loss) | 0 | |||||||
Other comprehensive income (loss), net of tax | 0 | |||||||
Balance ending of period | (1,560) | (1,560) | ||||||
Total | ||||||||
Components of Other Accumulated Income, Net of Tax [Roll Forward] | ||||||||
Balance beginning of period | (251,829) | (269,357) | (210,051) | (214,271) | (219,347) | (223,371) | (210,051) | (223,371) |
Other comprehensive income (loss), net of tax | 12,385 | 17,528 | (59,306) | (9,419) | 5,076 | 4,024 | ||
Balance ending of period | $ (239,444) | $ (251,829) | $ (269,357) | $ (223,690) | $ (214,271) | $ (219,347) | $ (239,444) | $ (223,690) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassified Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Unrealized loss on interest rate hedge | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense, net of interest income | $ (2,468) | $ (5,696) |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 03, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 6.7 | $ 5 | $ 12.7 | $ 14.7 | |
Income tax benefit | $ 1.7 | $ 1 | $ 2.9 | $ 2.8 | |
2020 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares originally authorized for issuance (in shares) | 2,500,000 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Awards (Details) - Restricted stock awards - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Number of Shares | ||||
Beginning balance (in shares) | 522,597 | |||
Granted (in shares) | 205,548 | |||
Vested (in shares) | (199,476) | |||
Forfeited (in shares) | (38,515) | |||
Ending balance (in shares) | 490,154 | 490,154 | ||
Weighted Average Grant-Date Fair Value | ||||
Beginning of period (in USD per share) | $ 59.57 | |||
Granted (in USD per share) | 58.54 | |||
Vested (in USD per share) | 57.59 | |||
Forfeited (in USD per share) | 58.81 | |||
End of period (in USD per share) | $ 60.01 | $ 60.01 | ||
Unrecognized compensation cost | $ 22 | $ 22 | ||
Period for recognition (in years) | 2 years 9 months | |||
Fair value restricted stock | $ 3.1 | $ 4.2 | $ 12.8 | $ 15.3 |
STOCK-BASED COMPENSATION - Perf
STOCK-BASED COMPENSATION - Performance Stock Awards (Details) - Performance stock awards - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Number of Shares | ||||
Beginning balance (in shares) | 204,553 | |||
Granted (in shares) | 161,610 | |||
Vested (in shares) | 0 | 0 | (23,222) | |
Forfeited (in shares) | (16,330) | |||
Ending balance (in shares) | 326,611 | 326,611 | ||
Weighted Average Grant-Date Fair Value | ||||
Beginning of period (in USD per share) | $ 64.78 | |||
Granted (in USD per share) | 58.30 | |||
Vested (in USD per share) | 55.75 | |||
Forfeited (in USD per share) | 64.59 | |||
End of period (in USD per share) | $ 62.22 | $ 62.22 | ||
Unrecognized compensation cost | $ 5.7 | $ 5.7 | ||
Fair value restricted stock | $ 1.3 | $ 2.9 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($)proceeding | Sep. 30, 2020USD ($)siteclaimproceeding | Dec. 31, 2012CAD ($) | Dec. 31, 1999municipality | Dec. 31, 1968permit | Dec. 31, 2019USD ($)proceeding | |
Loss Contingencies [Line Items] | ||||||
Recorded reserves for actual or probable liabilities | $ | $ 29,900,000 | $ 29,900,000 | $ 26,000,000 | |||
Number of proceedings as defendant | proceeding | 69 | 69 | ||||
Number of product liability claims settled or dismissed | claim | 10 | |||||
Annual aggregate self-insured corridor retention | $ | $ 5,000,000 | $ 5,000,000 | ||||
Remedial Liabilities for Inactive Sites | ||||||
Loss Contingencies [Line Items] | ||||||
Increase of remedial liabilities | $ | 3,300,000 | |||||
Legal and Administrative Proceedings | ||||||
Loss Contingencies [Line Items] | ||||||
Recorded reserves for actual or probable liabilities | $ | 24,100,000 | $ 24,100,000 | 18,400,000 | |||
Ville Mercier | ||||||
Loss Contingencies [Line Items] | ||||||
Number of permits issued by government, for dumping organic liquid | permit | 2 | |||||
Number of neighboring municipalities filing separate legal proceedings against the Mercier Subsidiary and the Government of Quebec | municipality | 3 | |||||
General damages sought | $ | $ 2.9 | |||||
Punitive damages sought | $ | $ 10 | |||||
Superfund Proceedings | ||||||
Loss Contingencies [Line Items] | ||||||
Number of sites owned by third party excluded from cleanup or related liabilities | site | 130 | |||||
Number of sites owned by the entity subject to proceedings under federal or state superfund laws | site | 5 | |||||
Number of sites owned by third parties | site | 125 | |||||
Number of sites for which environmental remediation expense is settled | site | 31 | |||||
Third party sites requiring expenditure on remediation | site | 15 | |||||
Number of sites not currently requiring expenditures on remediation | site | 79 | |||||
Minimum potential liability | $ | 100,000 | $ 100,000 | ||||
Number of sites, potential liability exceeds substantial quota | site | 9 | |||||
Notices received from owners of third parties sites seeking indemnifications from the company | site | 17 | |||||
BR Facility | Remedial Liabilities for Inactive Sites | ||||||
Loss Contingencies [Line Items] | ||||||
Increase of remedial liabilities | $ | 3,300,000 | |||||
ChemWaste | ||||||
Loss Contingencies [Line Items] | ||||||
Indemnification agreement with third party sites | site | 11 | |||||
Kleen Performance Products | ||||||
Loss Contingencies [Line Items] | ||||||
Notices received from owners of third parties sites seeking indemnifications from the company | site | 6 | |||||
Federal and State Enforcement Actions | ||||||
Loss Contingencies [Line Items] | ||||||
Recorded reserves for actual or probable liabilities | $ | $ 5,800,000 | $ 5,800,000 | $ 7,600,000 | |||
Number of proceedings as defendant | proceeding | 11 | 11 | 12 | |||
Minimum potential liability | $ | $ 100,000 | $ 100,000 | $ 100,000 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
SEGMENT REPORTING - Third Party
SEGMENT REPORTING - Third Party Revenues to Direct Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 779,344 | $ 891,668 | $ 2,347,907 | $ 2,541,185 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 72 | 129 | 218 | 925 |
Corporate Items, net | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (338) | (1,478) | (2,965) | (3,316) |
Operating and Corporate non-segment | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (266) | (1,349) | (2,747) | (2,391) |
Environmental Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 527,970 | 586,872 | 1,591,246 | 1,658,970 |
Environmental Services | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 498,183 | 550,122 | 1,490,641 | 1,550,114 |
Environmental Services | Intersegment revenues, net | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 29,448 | 35,274 | 97,782 | 105,555 |
Environmental Services | Corporate Items, net | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 339 | 1,476 | 2,823 | 3,301 |
Safety-Kleen | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 251,640 | 306,145 | 759,408 | 884,606 |
Safety-Kleen | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 281,089 | 341,417 | 857,048 | 990,146 |
Safety-Kleen | Intersegment revenues, net | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (29,448) | (35,274) | (97,782) | (105,555) |
Safety-Kleen | Corporate Items, net | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ (1) | $ 2 | $ 142 | $ 15 |
SEGMENT REPORTING - Adjusted EB
SEGMENT REPORTING - Adjusted EBITDA Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 161,171 | $ 156,613 | $ 419,241 | $ 408,101 |
Reconciliation to Consolidated Statements of Operations: | ||||
Accretion of environmental liabilities | 2,822 | 2,490 | 8,149 | 7,624 |
Depreciation and amortization | 74,470 | 73,756 | 221,497 | 223,328 |
Income from operations | 83,879 | 80,367 | 189,595 | 177,149 |
Other (income) expense, net | (2,268) | 427 | 597 | (1,992) |
Loss on early extinguishment of debt | 0 | 6,119 | 0 | 6,119 |
Loss on sale of businesses | 118 | 0 | 3,376 | 0 |
Interest expense, net of interest income | 17,407 | 19,702 | 54,848 | 59,681 |
Income before provision for income taxes | 68,622 | 54,119 | 130,774 | 113,341 |
Operating segments | Environmental Services | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 140,854 | 121,658 | 387,851 | 329,036 |
Operating segments | Safety-Kleen | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 68,761 | 81,326 | 176,498 | 215,578 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ (48,444) | $ (46,371) | $ (145,108) | $ (136,513) |
SEGMENT REPORTING - Assets by R
SEGMENT REPORTING - Assets by Reportable Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 1,539,333 | $ 1,588,151 |
Goodwill | 524,261 | 525,013 |
Permits and other intangibles, net | 392,401 | 419,066 |
Goodwill and permits and other intangibles, net | 916,662 | 944,079 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 89,893 | 93,489 |
Environmental Services | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 211,139 | 212,531 |
Environmental Services | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 890,262 | 939,352 |
Goodwill | 211,139 | 212,531 |
Permits and other intangibles, net | 80,535 | 89,722 |
Goodwill and permits and other intangibles, net | 291,674 | 302,253 |
Safety-Kleen | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 313,122 | 312,482 |
Safety-Kleen | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 559,178 | 555,310 |
Goodwill | 313,122 | 312,482 |
Permits and other intangibles, net | 311,866 | 329,344 |
Goodwill and permits and other intangibles, net | $ 624,988 | $ 641,826 |
SEGMENT REPORTING - Total Asset
SEGMENT REPORTING - Total Assets by Geographical Area (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 4,106,187 | $ 4,108,904 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | 3,452,839 | 3,413,254 |
Canada and other foreign | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total assets | $ 653,348 | $ 695,650 |