Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 16, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.7 | ||
Entity Common Stock, Shares Outstanding | 54,405,021 | ||
Documents Incorporated by Reference | Certain portions of the registrant's definitive proxy statement for its 2022 annual meeting of stockholders (which will be filed with the Commission not later than April 15, 2022) are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0000822818 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Location | Boston, Massachusetts |
Auditor Name | Deloitte & Touche LLP |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 452,575 | $ 519,101 |
Short-term marketable securities | 81,724 | 51,857 |
Accounts receivable, net of allowances aggregating $40,140 and $44,749, respectively | 792,734 | 611,534 |
Unbilled accounts receivable | 94,963 | 55,681 |
Inventories and supplies | 250,692 | 220,498 |
Prepaid expenses and other current assets | 68,483 | 67,051 |
Total current assets | 1,741,171 | 1,525,722 |
Property, plant and equipment, net | 1,863,175 | 1,525,298 |
Other assets: | ||
Operating lease right-of-use assets | 161,797 | 150,341 |
Goodwill | 1,227,042 | 527,023 |
Permits and other intangibles, net | 644,912 | 386,620 |
Other | 15,602 | 16,516 |
Total other assets | 2,049,353 | 1,080,500 |
Total assets | 5,653,699 | 4,131,520 |
Current liabilities: | ||
Current portion of long-term debt | 17,535 | 7,535 |
Accounts payable | 359,866 | 195,878 |
Deferred revenue | 83,749 | 74,066 |
Accrued expenses and other current liabilities | 391,414 | 295,823 |
Current portion of closure, post-closure and remedial liabilities | 25,136 | 26,093 |
Current portion of operating lease liabilities | 47,614 | 36,750 |
Total current liabilities | 925,314 | 636,145 |
Other liabilities: | ||
Closure and post-closure liabilities, less current portion of $12,015 and $13,903, respectively | 87,088 | 74,023 |
Remedial liabilities, less current portion of $13,121 and $12,190, respectively | 98,752 | 102,623 |
Long-term debt, less current portion | 2,517,024 | 1,549,641 |
Operating lease liabilities, less current portion | 117,991 | 114,258 |
Deferred tax liabilities | 314,853 | 230,097 |
Other long-term liabilities | 78,790 | 83,182 |
Total other liabilities | 3,214,498 | 2,153,824 |
Commitments and contingent liabilities (See Note 17) | ||
Stockholders' equity: | ||
Common stock | 544 | 548 |
Additional paid-in capital | 536,377 | 582,749 |
Accumulated other comprehensive loss | (196,012) | (211,477) |
Accumulated earnings | 1,172,978 | 969,731 |
Total stockholders' equity | 1,513,887 | 1,341,551 |
Total liabilities and stockholders' equity | $ 5,653,699 | $ 4,131,520 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Account receivable, allowances aggregating | $ 40,140 | $ 44,749 |
Closure and post-closure liabilities, current portion | 12,015 | 13,903 |
Remedial liabilities, current portion | $ 13,121 | $ 12,190 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 80,000,000 | 80,000,000 |
Common stock, issued shares (in shares) | 54,419,321 | 54,772,696 |
Common stock, outstanding shares (in shares) | 54,419,321 | 54,772,696 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Total revenues | $ 3,805,566 | $ 3,144,097 | $ 3,412,190 |
Cost of revenues: (exclusive of items shown separately below) | |||
Total cost of revenues | 2,609,837 | 2,137,751 | 2,387,819 |
Selling, general and administrative expenses | 537,962 | 451,044 | 484,054 |
Accretion of environmental liabilities | 11,745 | 11,051 | 10,136 |
Depreciation and amortization | 298,135 | 292,915 | 300,725 |
Income from operations | 347,887 | 251,336 | 229,456 |
Other (expense) income, net | (515) | (290) | 2,897 |
Loss on early extinguishment of debt | 0 | 0 | (6,131) |
(Loss) gain on sale of businesses | 0 | (3,376) | 687 |
Interest expense, net of interest income of $2,218, $3,462 and $4,227, respectively | (77,657) | (73,120) | (78,670) |
Income from operations before provision for income taxes | 269,715 | 174,550 | 148,239 |
Provision for income taxes | 66,468 | 39,713 | 50,499 |
Net income | $ 203,247 | $ 134,837 | $ 97,740 |
Earnings per share: | |||
Basic (in dollars per share) | $ 3.73 | $ 2.43 | $ 1.75 |
Diluted (in dollars per share) | $ 3.71 | $ 2.42 | $ 1.74 |
Shares used to compute earnings per share — Basic (in shares) | 54,514 | 55,479 | 55,845 |
Shares used to compute earnings per share — Diluted (in shares) | 54,761 | 55,690 | 56,129 |
Service revenues | |||
Revenues: | |||
Total revenues | $ 3,048,019 | $ 2,724,584 | $ 2,842,881 |
Cost of revenues: (exclusive of items shown separately below) | |||
Total cost of revenues | 2,105,043 | 1,786,718 | 1,945,021 |
Product revenues | |||
Revenues: | |||
Total revenues | 757,547 | 419,513 | 569,309 |
Cost of revenues: (exclusive of items shown separately below) | |||
Total cost of revenues | $ 504,794 | $ 351,033 | $ 442,798 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Interest income | $ 2,218 | $ 3,462 | $ 4,227 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 203,247 | $ 134,837 | $ 97,740 |
Other comprehensive income (loss), net of tax: | |||
Unrealized loss on available-for-sale securities | (285) | (8) | (120) |
Reclassification adjustment for loss on available-for-sale securities included in net income | 0 | 0 | 332 |
Unrealized gain (loss) on interest rate hedge | 6,235 | (20,970) | (14,401) |
Reclassification adjustment for loss on interest rate hedge included in net income | 10,011 | 8,180 | 2,335 |
Unrealized gain (loss) on net pension liability | 1,094 | (189) | 44 |
Foreign currency translation adjustments | (1,590) | 11,561 | 25,130 |
Other comprehensive income (loss), net of tax | 15,465 | (1,426) | 13,320 |
Comprehensive income | $ 218,712 | $ 133,411 | $ 111,060 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 203,247 | $ 134,837 | $ 97,740 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization | 298,135 | 292,915 | 300,725 |
Allowance for doubtful accounts | 8,018 | 10,133 | 2,408 |
Amortization of deferred financing costs and debt discount | 4,245 | 3,666 | 3,809 |
Accretion of environmental liabilities | 11,745 | 11,051 | 10,136 |
Changes in environmental liability estimates | 2,979 | 10,698 | (332) |
Deferred income taxes | 1,482 | (9,748) | 8,005 |
Other expense (income), net | 515 | 290 | (2,897) |
Stock-based compensation | 18,839 | 18,502 | 17,816 |
Loss (gain) on sale of businesses | 0 | 3,376 | (687) |
Loss on early extinguishment of debt | 0 | 0 | 6,131 |
Environmental expenditures | (15,506) | (12,401) | (18,701) |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable and unbilled accounts receivable | (96,551) | 22,422 | (33,271) |
Inventories and supplies | (31,689) | (7,933) | (15,869) |
Other current and non-current assets | 9,268 | (12,602) | (14,421) |
Accounts payable | 108,398 | (80,328) | 7,153 |
Other current and long-term liabilities | 22,872 | 45,719 | 45,447 |
Net cash from operating activities | 545,997 | 430,597 | 413,192 |
Cash flows used in investing activities: | |||
Additions to property, plant and equipment | (241,856) | (196,256) | (216,324) |
Proceeds from sale and disposal of fixed assets | 22,156 | 9,623 | 11,655 |
Acquisitions, net of cash acquired | (1,253,232) | (8,839) | (29,363) |
Additions to intangible assets including costs to obtain or renew permits | (3,848) | (2,029) | (3,904) |
Purchases of available-for-sale securities | (129,234) | (70,891) | (35,836) |
Proceeds from sale of available-for-sale securities | 98,412 | 61,220 | 51,202 |
Proceeds from sale of businesses, net of transactional costs | 0 | 7,712 | 4,714 |
Net cash used in investing activities | (1,507,602) | (199,460) | (217,856) |
Cash flows from (used in) financing activities: | |||
Change in uncashed checks | (1,806) | 5,404 | (3,705) |
Tax payments related to withholdings on vested restricted stock | (10,805) | (5,331) | (7,429) |
Repurchases of common stock | (54,410) | (74,844) | (21,390) |
Deferred financing costs paid | (13,737) | (2,171) | (10,079) |
Payments on finance leases | (8,458) | (4,469) | (586) |
Premiums paid on early extinguishment of debt | 0 | 0 | (2,701) |
Principal payments on debt | (7,535) | (7,535) | (852,535) |
Proceeds from issuance of debt, net of discount | 995,000 | 0 | 845,000 |
Borrowings from revolving credit facility | 0 | 150,000 | 0 |
Payments on revolving credit facility | 0 | (150,000) | 0 |
Net cash from (used in) financing activities | 898,249 | (88,946) | (53,425) |
Effect of exchange rate change on cash | (3,170) | 4,919 | 3,573 |
(Decrease) increase in cash and cash equivalents | (66,526) | 147,110 | 145,484 |
Cash and cash equivalents, beginning of year | 519,101 | 371,991 | 226,507 |
Cash and cash equivalents, end of year | 452,575 | 519,101 | 371,991 |
Cash payments for interest and income taxes: | |||
Interest paid | 73,440 | 72,535 | 60,852 |
Income taxes paid, net of refunds | 65,192 | 53,123 | 27,035 |
Non-cash investing activities: | |||
Property, plant and equipment accrued | $ 19,264 | $ 3,536 | $ 30,964 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Earnings |
Beginning balance (in shares) at Dec. 31, 2018 | 55,847 | ||||
Beginning balance at Dec. 31, 2018 | $ 1,169,756 | $ 558 | $ 655,415 | $ (223,371) | $ 737,154 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 97,740 | 97,740 | |||
Other comprehensive income (loss) | 13,320 | 13,320 | |||
Stock-based compensation | 17,816 | 17,816 | |||
Issuance of common stock for restricted share vesting, net of employee tax withholding (in shares) | 249 | ||||
Issuance of common stock for restricted share vesting, net of employee tax withholdings | $ (7,429) | $ 3 | (7,432) | ||
Repurchases of common stock (in shares) | (300) | (298) | |||
Repurchases of common stock | $ (21,390) | $ (3) | (21,387) | ||
Ending balance (in shares) at Dec. 31, 2019 | 55,798 | ||||
Ending balance at Dec. 31, 2019 | 1,269,813 | $ 558 | 644,412 | (210,051) | 834,894 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 134,837 | 134,837 | |||
Other comprehensive income (loss) | (1,426) | (1,426) | |||
Stock-based compensation | 18,502 | 18,502 | |||
Issuance of common stock for restricted share vesting, net of employee tax withholding (in shares) | 179 | ||||
Issuance of common stock for restricted share vesting, net of employee tax withholdings | $ (5,331) | $ 2 | (5,333) | ||
Repurchases of common stock (in shares) | (1,200) | (1,204) | |||
Repurchases of common stock | $ (74,844) | $ (12) | (74,832) | ||
Ending balance (in shares) at Dec. 31, 2020 | 54,773 | ||||
Ending balance at Dec. 31, 2020 | 1,341,551 | $ 548 | 582,749 | (211,477) | 969,731 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 203,247 | 203,247 | |||
Other comprehensive income (loss) | 15,465 | 15,465 | |||
Stock-based compensation | 18,839 | 18,839 | |||
Issuance of common stock for restricted share vesting, net of employee tax withholding (in shares) | 235 | ||||
Issuance of common stock for restricted share vesting, net of employee tax withholdings | $ (10,805) | $ 2 | (10,807) | ||
Repurchases of common stock (in shares) | (600) | (589) | |||
Repurchases of common stock | $ (54,410) | $ (6) | (54,404) | ||
Ending balance (in shares) at Dec. 31, 2021 | 54,419 | ||||
Ending balance at Dec. 31, 2021 | $ 1,513,887 | $ 544 | $ 536,377 | $ (196,012) | $ 1,172,978 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (PARENTHETICAL) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
OPERATIONS
OPERATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OPERATIONS | OPERATIONSClean Harbors, Inc., through its subsidiaries (collectively, the "Company"), is a leading provider of environmental and industrial services throughout North America. The Company is also the largest re-refiner and recycler of used oil and the premier provider of parts cleaning and related environmental services to commercial, industrial and automotive customers in North America. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements of the Company reflect the application of certain significant accounting policies as described below: Principles of Consolidation The accompanying consolidated financial statements include the accounts of Clean Harbors, Inc. and its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the Company's consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable at the time under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and disclosure, if any, of contingent assets and liabilities and reported amounts of revenues and expenses. Actual results could differ from those estimates and judgments. Changes in Operating Segments During the first quarter of 2021, the Company reorganized its Safety-Kleen business. The collection services for waste oil, used oil filters, antifreeze and related items and bulk blended oil sales operations were combined with the Safety-Kleen Oil business to form the Safety-Kleen Sustainability Solutions business. Under this structure, Safety-Kleen Sustainability Solutions will encompass both sides of the spread that the Company manages in its re-refinery business. Concurrently with this change, the Company consolidated the Safety-Kleen branches' core offerings, including containerized waste, parts washer and vacuum services, into the legacy Clean Harbors Environmental Services sales and service operations. In restructuring the operations of the Company in this manner, the information that the chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed to conform to this new operating structure of the business and the Company reevaluated the identification of its operating segments. In accordance with ASC 280, Segment Reporting, Environmental Services and Safety-Kleen Sustainability Solutions are the Company's operating segments and reportable segments starting in the first quarter of 2021, with the operations not managed through the Company's operating segments described above continuing to be recorded as Corporate Items. Segment financial information has been retrospectively adjusted to reflect these changes. The impact of the segment change has been reflected throughout our financial statements and related disclosures, including here in Note 2, "Significant Accounting Policies," as well as in Note 3, "Revenues," Note 4, "Business Combinations," Note 7, "Goodwill and Other Intangible Assets" and Note 19, "Segment Reporting." Cash, Cash Equivalents and Uncashed Checks Cash consists primarily of cash on deposit and money market accounts. Marketable securities with maturities of three months or less from the date of purchase are classified as cash equivalents. The Company's cash management program with its revolving credit lender allows for the maintenance of a zero balance in the U.S. bank disbursement accounts that are used to issue vendor and payroll checks. When checks are presented to the bank for payment, cash deposits in amounts sufficient to fund the checks are made, at the Company's discretion, either from funds provided by other accounts or under the terms of the Company's revolving credit facility. Checks that have been written to vendors or employees but have not yet been presented for payment at the Company's bank are classified as uncashed checks as part of accounts payable and changes in the balance are reported as a financing activity in the consolidated statements of cash flows. Marketable Securities The Company, through its wholly-owned captive insurance subsidiary, invests in marketable securities consisting of U.S. Treasury securities, corporate notes and bonds as well as commercial paper. As of December 31, 2021 and 2020, the Company had total marketable securities as follows (in thousands): December 31, 2021 December 31, 2020 U.S. Treasury securities $ 901 $ 28,901 Municipal bonds 1,978 — Corporate notes and bonds 57,685 22,956 Commercial paper 21,160 — Total marketable securities $ 81,724 $ 51,857 Realized gains and losses on sales of available-for-sale marketable securities in the years presented were immaterial. The majority of the marketable securities have a remaining maturity of less than one year and fair value approximates cost. Allowance for Doubtful Accounts and Revenue Allowance On a regular basis, the Company evaluates its accounts receivable and establishes the allowance for doubtful accounts based on an evaluation of certain criteria and evidence of collection uncertainty including historical collection trends, reasonable expectations of future collections, current economic trends and changes in customer payment patterns. Past-due receivable balances are written off when the Company's collection efforts have been deemed unsuccessful in collecting the outstanding balance due. Due to the nature of the Company's businesses and the invoices that result from the services provided, customers may withhold payments and attempt to renegotiate amounts invoiced. In addition, for some of the services provided, the Company's invoices are based on quotes that, in limited instances can result in adjustments to revenue subsequent to billing. Based on industry knowledge and historical trends, the Company records a revenue allowance in anticipation of these expected adjustments. This practice causes the volume of activity flowing through the revenue allowance during the year to be higher than the balance at the end of the year. The revenue allowance is intended to cover the net amount of revenue adjustments that may need to be credited to customers' accounts in future periods. Management determines the appropriate total revenue allowance by evaluating the following factors on an invoice-by-invoice basis as well as on a consolidated level: trends in adjustments to previously billed amounts, existing economic conditions, communications with customers and other information as deemed applicable. Revenue allowance estimates can differ from the actual adjustments, but historically the revenue allowance has been sufficient to cover the net amount of the reserve adjustments issued in subsequent reporting periods. The following table reflects the activity in the allowance for doubtful accounts and revenue allowance (in thousands): Allowance for Doubtful Accounts Revenue Allowance 2021 2020 2019 2021 2020 2019 Balance at January 1, $ 24,634 $ 22,493 $ 26,368 $ 20,115 $ 16,218 $ 17,947 Additions charged to earnings 8,018 10,133 2,408 34,319 45,784 35,549 Deductions from reserves, net of recoveries (8,516) (7,992) (6,283) (38,430) (41,887) (37,278) Balance at December 31, $ 24,136 $ 24,634 $ 22,493 $ 16,004 $ 20,115 $ 16,218 Credit Concentration Concentration of credit risks in accounts receivable is limited due to the large number of customers comprising the Company's customer base throughout North America. The Company maintains policies over credit extension that include credit evaluations, credit limits and collection monitoring procedures on a customer-by-customer basis. However, the Company generally does not require collateral before services are performed. No individual customer accounted for more than 10% of accounts receivable or more than 10% of total direct revenues in the periods presented. Inventories and Supplies Inventories are stated at the lower of cost or market. The cost of oil and oil products as well as the cost of supplies and drums, solvent and solution and other inventories is principally determined on a first-in, first-out ("FIFO") basis. The Company continually reviews its inventories for obsolete or unsalable items and adjusts its carrying value to reflect estimated realizable values. Property, Plant and Equipment, net (excluding landfill assets and finance lease right-of-use assets) Property, plant and equipment, net is stated at cost less accumulated depreciation. Expenditures for major renewals and improvements which extend the life or usefulness of the asset are capitalized. Items of an ordinary repair or maintenance nature are charged directly to operating expense as incurred. Gains and losses on the sale of property, plant and equipment are included in other (expense) income, net. During the construction and development period of an asset, the costs incurred are classified as construction-in-progress. When the asset is ready for its intended use, the asset is reclassified to an appropriate asset classification and depreciation or amortization commences. The Company depreciates and amortizes the capitalized cost of these assets, using the straight-line method as follows: Asset Classification Estimated Useful Life Buildings and building improvements Buildings 20-42 years Leasehold and building improvements 2-45 years Camp and lodging equipment 8-15 years Vehicles 2-15 years Equipment Capitalized software and computer equipment 3-5 years Containers and railcars 8-16 years All other equipment 4-30 years Furniture and fixtures 5-8 years The Company tests asset groups for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment in the carrying value of long-lived assets is recognized if the expected future undiscounted cash flows derived from the assets, or group of assets, are less than their carrying value. The Company did not record any impairment charges related to long-lived assets in the periods presented. Business Combinations In accordance with the acquisition method of accounting, the purchase price paid for an acquisition is allocated to the assets and liabilities acquired based upon their estimated fair values as of the acquisition date, with the excess of the purchase price over the net assets acquired recorded as goodwill. As required, a preliminary fair value is determined once a business is acquired, with the final determination of the fair value being completed no later than one year from the date of acquisition. Goodwill Goodwill is comprised of the purchase price of business acquisitions in excess of the fair value of the net assets acquired. Goodwill is reviewed for impairment annually as of December 31 or when events or changes in the business environment indicate the carrying value of a reporting unit may exceed its fair value. This review is performed by comparing the fair value of each reporting unit to its carrying value, including goodwill. If the fair value is less than the carrying amount, a loss is recorded for the excess of the carrying value over the fair value up to the carrying amount of goodwill. We determine our reporting units by identifying the components of each operating segment. As of December 31, 2021, using our segment conclusions then in place, we had three reporting units consisting of, Environmental Sales and Service, Environmental Facilities and Safety-Kleen Sustainability Solutions. See Note 7, "Goodwill and Other Intangible Assets," for additional information related to the Company's goodwill impairment tests. Permits and Other Intangibles Costs related to acquiring licenses, permits and intangible assets, such as legal fees, site surveys, engineering costs and other expenditures are capitalized. Other intangible assets consist primarily of customer and supplier relationships, trademarks and trade names and developed technology. Permits relating to landfills are amortized on a units-of-consumption basis. All other permits are amortized over periods ranging from five two All finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. When such factors and circumstances exist, management compares the projected undiscounted future cash flows associated with the related asset or group of assets to the carrying amount. The impairment loss, if any, is measured as the excess of the carrying amount over the fair value of the asset or group of assets. Indefinite-lived intangible assets are not amortized but are reviewed for impairment annually as of December 31, or when events or changes in the business environment indicate that the carrying value may be impaired. If the fair value of the asset is less than the carrying amount, the impairment loss is measured as the excess of the carrying value of the asset over its fair value. Landfill Accounting The Company amortizes landfill improvements and certain landfill-related permits over the estimated useful lives. The units-of-consumption method is used to amortize land, landfill cell construction, asset retirement costs and remaining landfill cells and sites. The Company also utilizes the units-of-consumption method to record closure and post-closure obligations for landfill cells and sites. Under the units-of-consumption method, the Company includes future estimated construction and asset retirement costs, as well as costs incurred to date, in the amortization base of the landfill assets. Additionally, where appropriate, as described below, the Company includes probable expansion airspace that has yet to be permitted in the calculation of the total remaining useful life of the landfill. If it is determined that expansion capacity should no longer be considered in calculating the recoverability of a landfill asset, the Company may be required to recognize an asset impairment or incur significantly higher amortization expense. If at any time the Company makes the decision to abandon the expansion effort, the capitalized costs related to the expansion effort are expensed immediately. Landfill assets —Landfill assets include the costs of landfill site acquisition, permits and cell construction incurred to date. These amounts are recorded at cost, which includes capitalized interest as applicable. Landfill assets, net of amortization, are combined with management's estimate of the costs required to complete construction of the landfill to determine the amount to be amortized over the remaining estimated useful economic life of a site. Amortization of landfill assets is recorded on a units-of-consumption basis, such that the landfill assets should be completely amortized at the date the landfill ceases accepting waste. Amortization totaled $13.7 million, $10.9 million and $12.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Changes in the determination of when the landfill will cease accepting waste, either through a business decision by the Company, determination that expansion capacity should no longer be considered probable or changes in estimates on annual airspace consumption, will impact the amortization expense of the landfill assets. Changes in estimated costs to complete construction are applied prospectively to the amortization rate. Landfill capacity —Landfill capacity, which is the basis for the amortization of landfill assets and for the accrual of final closure and post-closure obligations, represents total permitted airspace plus unpermitted airspace that management believes is highly probable of ultimately being permitted. As of December 31, 2021, there were no unpermitted expansions included in the Company's landfill accounting model. If actual expansion airspace is significantly different from management's estimate of expansion airspace, the amortization rates used for the units-of-consumption method would change, therefore impacting our profitability. As of December 31, 2021, the Company had 9 active landfill sites (including the Company's two non-commercial landfills), which have estimated remaining lives (based on anticipated waste volumes and remaining highly probable airspace) as follows: Facility Name Location Remaining Permitted Remaining Highly Probable Airspace Buttonwillow California 21 5,500 Deer Park Texas 1 32 Deer Trail Colorado 26 1,572 Grassy Mountain Utah 40 4,608 Kimball Nebraska 5 120 Lambton Ontario, Canada 48 4,534 Lone Mountain Oklahoma 16 3,617 Ryley Alberta, Canada 3 455 Sawyer North Dakota 84 3,346 23,784 At December 31, 2021 and 2020, the Company had no cubic yards of permitted, but not highly probable, airspace. The following table presents the remaining highly probable airspace from January 1, 2019 through December 31, 2021 (in thousands of cubic yards): 2021 2020 2019 Remaining capacity, beginning of year 24,716 28,494 29,760 Changes in highly probable airspace, net — (2,962) — Consumed (932) (816) (1,266) Remaining capacity, end of year 23,784 24,716 28,494 The Company is in the process of closing two commercial landfill sites, Altair and Westmorland. These landfills are classified as inactive with no airspace at either landfill being consumed in 2021. During 2020, the Altair landfill, a non-hazardous landfill, reached permitted capacity. Airspace consumed from the Altair landfill in the years ended December 31, 2020 and 2019 was 25 and 132 thousand cubic yards, respectively. During 2020, the Company also decided to close the Westmorland landfill, a hazardous landfill, due to the costs of obtaining and maintaining permits and operating the landfill. No airspace had been consumed at the Westmorland landfill in any period presented. The change in the highly probable airspace, net in 2020 is predominately the result of the Company's decision to close the Westmorland and Altair landfills. Amortization of cell construction costs and accrual of cell closure obligations —Landfills are typically comprised of a number of cells, which are constructed within a defined acreage (or footprint). The cells are typically discrete units, which require both separate construction and separate capping and closure procedures. Cell construction costs are the costs required to excavate and construct the landfill cell. These costs are typically amortized on a units-of-consumption basis, such that they are completely amortized when the specific cell ceases accepting waste. In some instances, the Company has landfills that are engineered and constructed as "progressive trenches." In progressive trench landfills, a number of contiguous cells form a progressive trench. In those instances, the Company amortizes cell construction costs over the airspace within the entire trench, such that the cell construction costs will be fully amortized at the end of the trench useful life. The design and construction of a landfill does not create a landfill asset retirement obligation. Rather, the asset retirement obligation for cell closure (the cost associated with capping each cell) is incurred in relatively small increments as waste is placed in the landfill. Therefore, the cost required to construct the cell cap is capitalized as an asset retirement cost and a liability of an equal amount is established, based on the discounted cash flow associated with each capping event, as airspace is consumed. Spending for cell capping is reflected as environmental expenditures within operating activities in the consolidated statements of cash flows. Landfill final closure and post-closure liabilities —The balance of landfill final closure and post-closure liabilities at December 31, 2021 and 2020 was $53.4 million and $48.4 million, respectively. The Company has material financial commitments for the costs associated with requirements of the Environmental Protection Agency ("EPA") and the comparable regulatory agency in Canada for landfill final closure and post-closure activities. The Company develops estimates for the cost of these activities based on an evaluation of site-specific facts and circumstances, including the Company's interpretation of current regulatory requirements and proposed regulatory changes. Such estimates may change in the future due to various circumstances including, but not limited to, permit modifications, changes in legislation or regulations, technological changes and results of environmental studies. Final closure costs are the costs incurred after the site ceases to accept waste, but before the landfill is certified as closed by the applicable state regulatory agency. These costs generally include the costs required to cap the final cell of the landfill (if not included in cell closure), the costs required to dismantle certain structures for landfills and other landfill improvements, and regulation-mandated groundwater monitoring and leachate management. Post-closure costs involve the maintenance and monitoring of a landfill site that has been certified closed by the applicable regulatory agency. These costs generally include groundwater monitoring and leachate management. Regulatory post-closure periods are generally 30 years after landfill closure. Final closure and post-closure obligations are accrued on a units-of-consumption basis, such that the present value of the final closure and post-closure obligations are fully accrued at the date the landfill ceases accepting waste. Cell closure, final closure and post-closure costs (also referred to as "asset retirement obligations") are calculated by estimating the total obligation in current dollars, adjusted for inflation (1.02% during both 2021 and 2020) and discounted at the Company's credit-adjusted risk-free interest rate (4.84% and 5.60% during 2021 and 2020, respectively). Non-Landfill Closure and Post-Closure Liabilities The balance of non-landfill closure and post-closure liabilities at December 31, 2021 and 2020 was $45.7 million and $39.5 million, respectively. Non-landfill closure and post-closure obligations arise when the Company commences non-landfill facility operations and include costs required to dismantle and decontaminate certain structures and other costs incurred during the closure process. Post-closure costs, if required, include associated maintenance and monitoring costs as required by the closure permit. Post-closure periods are performance-based and are not typically specified in terms of years in the closure permit, but generally range from 10 to 30 years or more. The Company records its non-landfill closure and post-closure liability by: (i) estimating the current cost of closing a non-landfill facility and the post-closure care of that facility, if required, based upon the closure plan that the Company is required to follow under its operating permit, or in the event the facility operates with a permit that does not contain a closure plan, based upon legally enforceable closure commitments made by the Company to various government agencies; (ii) estimates as to when future operations may cease; (iii) cost estimates of closing the non-landfill facility using the inflation rate to the time of closing; and (iv) discounting the future value back to the present using the credit-adjusted risk-free interest rate. The estimates for non-landfill closure and post-closure liabilities are inherently uncertain due to the possibility that permit and regulatory requirements will change in the future, impacting the estimation of total costs and the timing of the expenditures. Management reviews non-landfill closure and post-closure liabilities for changes to key assumptions that would impact the amount of the recorded liabilities. Changes that would prompt management to revise a liability estimate include changes in legal requirements that impact the Company's expected closure plan or scope of work, in the market price of a significant cost item, in the estimate as to when future operations at a location might cease or in the expected timing of the costs. Changes in estimates for non-landfill closure and post-closure events immediately impact the liability and the value of the corresponding asset. If a change is made to a fully-amortized asset, the adjustment is charged immediately to expense. When a change in estimate relates to an asset that has not been fully amortized, the adjustment to the asset is recognized in income prospectively as a component of amortization. Historically, changes to non-landfill closure and post-closure estimates have not been material. Remedial Liabilities The balance of remedial liabilities at December 31, 2021 and 2020 was $111.9 million and $114.8 million, respectively. Remedial liabilities, including Superfund liabilities, include the costs of removal or containment of contaminated material, treatment of potentially contaminated groundwater and maintenance and monitoring costs necessary to comply with regulatory requirements. Most of the Company's remedial liabilities relate to the active and inactive hazardous waste treatment and disposal facilities which the Company acquired and Superfund sites owned by third parties for which the Company, 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. The Company's estimate of remedial liabilities involves an analysis of such factors as: (i) the nature and extent of environmental contamination (if any); (ii) the terms of applicable permits and agreements with regulatory authorities as to cleanup procedures and whether modifications to such permits and agreements will likely need to be negotiated; (iii) the cost of performing anticipated cleanup activities based upon current technology; and (iv) in the case of Superfund and other sites where other parties will also be responsible for a portion of the cleanup costs, the likely allocation of such costs and the ability of such other parties to pay their share. The measurement of remedial liabilities is reviewed at least quarterly and changes in estimates are recognized in the consolidated statements of operations when identified. The Company periodically evaluates potential remedial liabilities at sites that it owns or operates or to which the Company or the sellers of the Chemical Services Division of Safety-Kleen ("CSD") assets (or the respective predecessors of the Company or such sellers) transported or disposed of waste, including 131 Superfund sites as of December 31, 2021. The Company periodically reviews and evaluates sites requiring remediation giving consideration to the nature (i.e., owner, operator, arranger, transporter or generator) and the extent (i.e., amount and nature of waste hauled to the location, number of years of site operations or other relevant factors) of the Company's (or such sellers') alleged connection with the site, the extent (if any) to which the Company believes it may have an obligation to indemnify cleanup costs in connection with the site, the regulatory context surrounding the site, the accuracy and strength of evidence connecting the Company (or such sellers) to the location, the number, connection and financial ability of other named and unnamed PRPs and the nature and estimated cost of the likely remedy. Where the Company concludes that it is probable that a liability has been incurred and an amount can be estimated, a liability is recognized. Remedial liabilities are inherently difficult to estimate. Estimating remedial liabilities requires that the existing environmental contamination be understood. There are risks that the actual quantities of contaminants differ from the results of the site investigation, and that contaminants exist that have not been previously identified. In addition, the amount of remedial liabilities recorded is dependent on the remedial method selected. There is a risk that funds will be expended on a remedial solution that is not successful, which could result in the Company incurring the incremental costs of an alternative solution. Such estimates, which are subject to change, are subsequently revised if and when additional or new information becomes available. Remedial liabilities are discounted when the timing of the payments is determinable and the amounts are estimable. In the case of remedial liabilities assumed in connection with acquisitions, acquired liabilities are recorded at fair value as of the dates of the acquisitions calculated by inflating costs in current dollars using an estimate of future inflation rates as of the respective acquisition dates until the expected time of payment, and then discounting the amount of the payments to their present value using a risk-free discount rate as of the acquisition dates. Discount rates used in the present value determination of the Company's remedial liabilities range from 1.37% to 4.90%. Self-Insurance Liabilities The Company self-insures a significant portion of expected losses related to workers' compensation, employee medical, comprehensive general liability and vehicle liability. Liabilities associated with these losses are recorded based on the Company's estimates of the ultimate cost to settle incurred claims. These recorded liabilities are estimated based on independent actuarial estimates and judgments which consider the frequency and settlement amount of historical claims data. Revenue Recognition The Company generates service and product revenues through the following operating segments: Environmental Services and Safety-Kleen Sustainability Solutions. The Company's Environmental Services operating segment generally has four sources of revenue and the Safety-Kleen Sustainability Solutions operating segment has two sources of revenue. The Company recognizes revenue when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The majority of the Company’s revenues are for services, which are recognized based on time and materials incurred at contractually agreed-upon rates. Product revenues are recognized when the products are delivered and control transfers to the customer. The Company’s payment terms vary by the type of customers and the products or services offered. The periods between invoicing and when payments are due are not significant. Amounts billed to customers related to shipping and handling are classified as revenue, and the Company's shipping and handling costs are included in costs of revenues. In the course of operations, the Company collects sales tax and other excise taxes from its customers and recognizes a current liability, which is then relieved when the taxes are remitted to the appropriate government authorities. The Company excludes sales and other excise taxes that it collects from customers from its revenues. Foreign Currency The Company has international operations, substantially all of which are located in Canada from an operational perspective with more limited administrative support services located in India. The functional currencies of foreign operations are the local currency and therefore assets and liabilities of those foreign operations are translated to U.S. Dollars at the exchange rate in effect at the balance sheet date and revenue and expenses at the average exchange rate for the period. Gains and losses from the translation of the consolidated financial statements of foreign subsidiaries into U.S. Dollars are included in stockholders' equity as a component of accumulated other comprehensive loss. Gains and losses from transactions not denominated in the functional currency of an entity are recognized in the consolidated statements of operations. Recorded balances that are denominated in a currency other than the functional currency are remeasured to the functional currency using the exchange rate at the balance sheet date and gains or losses are recorded in the consolidated statements of operations. Defined Contribution Plan The Company has defined contribution plans under which eligible employees may contribute up to the maximum amount as provided by law. The Company matches a portion of these employee contributions and contributed $20.5 million, $18.6 million and $14.6 million in 2021, 2020 and 2019 respectively. Advertising Expense Advertising costs are expensed as incurred. Advertising expense was $6.0 million in 2021, $9.0 million in 2020 and $9.8 million in 2019. 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 |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES 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. The Company's significant sources of revenue include: Technical Services —Technical Services contribute to the revenues of the Environmental Services operating segment. Revenues for these services 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 as a basis for measuring the satisfaction of the performance obligation. 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 and the related costs from waste that is not yet completely processed and disposed of are deferred. The deferred revenues and costs are recognized when the 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 and Emergency Response Services contribute to the revenues of the Environmental Services operating segment. Field Services revenues are generated from cleanup services at customer sites, including those managed by municipalities and utility providers, 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, hydro excavation, manhole/vault clean outs, 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 contribute to the revenues of the Environmental Services operating segment. These 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, specialty cleaning services including chemical cleaning, pigging and high and ultra-high pressure water cleaning, leak detection and repair, daylighting, production services and upstream energy services. 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. Safety-Kleen Environmental Services —Safety-Kleen Environmental Services revenues contribute both to the Environmental Services operating segment and the Safety-Kleen Sustainability Solutions operating segment depending upon the nature of such revenues and operating responsibilities relative to driving these revenues. Revenues from providing containerized waste handling and disposal services, parts washer services and vacuum services, referred to collectively as the Safety-Kleen branches' core service offerings, contribute to the revenues of the Environmental Services operating segment. In addition, sales of packaged blended oil products and other complementary product sales contribute to the revenues of the Environmental Services operating segment. Revenues generated from waste oil, anti-freeze and oil filter collection services, sales of bulk blended oil products and sales of bulk automotive fluids contribute to the Safety-Kleen Sustainability Solutions operating segment. Generally, the revenue from services is 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 duration of such services can be over a number of hours or several days. 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. Containerized waste services consist of profiling, collecting, transporting and recycling or disposing of a wide variety of waste. Related 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. 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. Safety-Kleen Oil —Safety-Kleen Oil related sales contribute to the revenues of the Safety-Kleen Sustainability Solutions segment. These revenues 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. The following tables present the Company's third-party revenue disaggregated by source of revenue and geography (in thousands): For the year ended December 31, 2021 Environmental Services Safety-Kleen Sustainability Solutions Corporate Total Primary Geographical Markets United States $ 2,631,112 $ 693,542 $ 299 $ 3,324,953 Canada 394,795 85,818 — 480,613 Total third-party revenues $ 3,025,907 $ 779,360 $ 299 $ 3,805,566 Sources of Revenue Technical Services $ 1,209,624 $ — $ — $ 1,209,624 Field and Emergency Response Services (1) 466,380 — — 466,380 Industrial Services and Other (2) 705,999 — 299 706,298 Safety-Kleen Environmental Services 643,904 161,587 — 805,491 Safety-Kleen Oil — 617,773 — 617,773 Total third-party revenues $ 3,025,907 $ 779,360 $ 299 $ 3,805,566 _____________ (1) Includes $28.4 million of third-party revenues generated from the operations of the HydroChemPSC business (2) Includes $137.7 million of third-party revenues generated from the operations of the HydroChemPSC business For the year ended December 31, 2020 Environmental Services Safety-Kleen Sustainability Solutions Corporate Total Primary Geographical Markets United States $ 2,287,796 $ 452,435 $ (674) $ 2,739,557 Canada 349,845 53,731 964 404,540 Total third-party revenues $ 2,637,641 $ 506,166 $ 290 $ 3,144,097 Sources of Revenue Technical Services $ 1,062,714 $ — $ — $ 1,062,714 Field and Emergency Response Services 461,036 — — 461,036 Industrial Services and Other 480,331 — 290 480,621 Safety-Kleen Environmental Services 633,560 175,676 — 809,236 Safety-Kleen Oil — 330,490 — 330,490 Total third-party revenues $ 2,637,641 $ 506,166 $ 290 $ 3,144,097 For the year ended December 31, 2019 Environmental Services Safety-Kleen Sustainability Solutions Corporate Total Primary Geographical Markets United States $ 2,390,718 $ 550,700 $ (586) $ 2,940,832 Canada 411,964 57,672 1,722 471,358 Total third-party revenues $ 2,802,682 $ 608,372 $ 1,136 $ 3,412,190 Sources of Revenue Technical Services $ 1,120,043 $ — $ — $ 1,120,043 Field and Emergency Response Services 340,906 — — 340,906 Industrial Services and Other 631,414 — 1,136 632,550 Safety-Kleen Environmental Services 710,319 141,201 — 851,520 Safety-Kleen Oil — 467,171 — 467,171 Total third-party revenues $ 2,802,682 $ 608,372 $ 1,136 $ 3,412,190 Contract Balances (in thousands) December 31, 2021 December 31, 2020 Receivables $ 792,734 $ 611,534 Contract assets (unbilled receivables) 94,963 55,681 Contract liabilities (deferred revenue) 83,749 74,066 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. Variable Consideration The nature of the Company's contracts give rise to certain types of variable consideration, including in limited cases volume discounts. Accordingly, management establishes a revenue allowance to cover the estimated amounts of revenue that may need to be credited to customers' accounts in future periods. The Company estimates the amount of variable consideration to include in the estimated transaction price based on historical experience, anticipated performance and management's best judgment at the time and to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. There have been no material changes in estimates of variable consideration in the periods presented. Contract Costs Contract costs include direct and incremental costs to obtain or fulfill a contract. Parts washer costs include costs of solvent, commissions paid relating to revenue generated from parts washer services, and transportation costs associated with transferring the product picked up from the services as it is returned to the Company’s facilities or a third-party site. Costs related to the treatment of waste include costs for waste receiving, drum movement and storage, waste consolidation and transportation between facilities. The Company’s contract costs that are subject to capitalization are comprised of costs associated with parts washer services and costs associated with the treatment and disposal of waste. As of December 31, 2021 and 2020, the Company's deferred contract costs totaled $26.4 million and $22.8 million, respectively. Deferred parts washer costs are recognized over the service interval as the customer receives the benefit of the services, and deferred costs related to treatment and disposal of waste are recognized when the corresponding waste is disposed. Deferred costs are included within total current assets in the Company’s consolidated balance sheets. The deferred contract cost balances at the beginning of each period presented were fully recognized in cost of revenue in the subsequent three-month period. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS HydroChemPSC On October 8, 2021, the Company completed its previously announced acquisition of LJ Energy Services Intermediate Holding Corp. and its subsidiaries (collectively, “HydroChemPSC”), a privately owned company. HydroChemPSC is a leading U.S. provider of industrial cleaning, specialty maintenance and utilities services with annual revenues of $715.3 million in 2020. The acquired operations, including more than 4,500 employees, over 240 service locations and a fleet of specialized vehicles and equipment, will enhance the Company's Environmental Services Segment. The Company paid an all-cash purchase price for HydroChemPSC of approximately $1.23 billion. The Company incurred acquisition, severance and integration related costs of approximately $6.0 million in connection with the transaction which are included in selling, general and administrative expenses in the consolidated statements of operations for the year ended December 31, 2021. The Company financed the purchase with net proceeds from the Company’s issuance of $1.0 billion of senior secured term loans on October 8, 2021. The remainder of the purchase price was funded through existing cash. See Note 11, "Financing Arrangements" for additional information regarding the issuance of the term loans. The acquisition of HydroChemPSC has been accounted for as a business combination and is included in the Company's consolidated financial statements commencing October 8, 2021. The fair value of all the acquired assets and liabilities summarized below is provisional pending finalization of the Company's acquisition accounting. The Company retained the services of third-party valuation specialists in determining the fair value of certain tangible and intangible assets, under the supervision of management. The Company believes that such preliminary allocations provide a reasonable basis for estimating the fair values of assets acquired and liabilities assumed but the Company is waiting for additional information necessary to finalize fair value. The Company expects to finalize the valuation and complete the purchase price allocation as soon as practicable but no later than one year from the acquisition date. Final determination of the fair value may result in further adjustments to the amounts presented below. Measurement period adjustment will reflect new information obtained about facts and circumstances that existed as of the acquisition date. The following table summarizes the preliminary determination and recognition of assets acquired and liabilities assumed (in thousands): At October 8, 2021 Accounts receivable, including unbilled receivables 131,924 Inventories and supplies 3,162 Prepaid expenses and other current assets 16,016 Property, plant and equipment 313,540 Other intangibles 289,000 Operating lease right-of-use assets 34,347 Other non-current assets 1,045 Current liabilities (115,704) Current portion of operating lease liabilities (11,659) Operating lease liabilities, less current portion (26,128) Deferred tax liabilities (85,908) Other long-term liabilities (2,685) Total identifiable net assets 546,950 Goodwill (i) 683,463 Total purchase price $ 1,230,413 _____________ (i) Goodwill represents the excess of the fair value of the net assets acquired over the purchase price. Goodwill of $683.5 million was assigned to the Environmental Sales & Service reporting unit and is attributable to the future economic benefits arising from the acquired operations, synergies and the acquired workforce of HydroChemPSC. None of the goodwill related to this acquisition will be deductible for tax purposes. Of the $289.0 million of acquired intangibles, the Company recorded a customer relationship intangible for $215.0 million with an estimated useful life of 25 years, an intangible asset for developed technology for $65.0 million with a useful life of 10 years and a trademark/tradename intangible asset for $9.0 million with an estimated useful life of 2 years. The fair values of the acquired intangibles were determined by using discounted cash flow valuation methods with significant estimates and assumptions related to future cash flows driven by estimated revenue growth, operational performance, customer attrition and royalty rates. The Company's consolidated statement of operations for the year ended December 31, 2021 includes $166.1 million of direct revenues and $166.4 million of expense, including $12.3 million of incremental depreciation and amortization related to the operations of the operations of the acquired business and the $6.0 million of severance and integration costs subsequent to its acquisition on October 8, 2021. Unaudited Pro Forma Financial Information The following table presents unaudited pro forma combined summary financial information for the years ended December 31, 2021 and December 31, 2020, respectively, and assumes the acquisition of HydroChemPSC occurred on January 1, 2020 (in thousands): 2021 2020 Pro forma combined revenues $ 4,380,724 $ 3,859,430 Pro forma combined net income 229,807 149,219 The pro forma results do not include any costs incurred directly attributable to the acquisition of HydroChemPSC. The pro forma results do reflect impacts resulting from the issuance of $1.0 billion senior secured term loans issued in connection with the acquisition assuming interest rates in effect at the time of the acquisition. This pro forma financial information is not necessarily indicative of the Company's consolidated operating results that would have been reported had the transactions been completed as described herein, nor is such information necessarily indicative of the Company's consolidated results for any future period. Interest expense used in calculating the pro forma net income in both periods did not contemplate the interest rate swap that the Company put in place in early 2022. See Note 11, "Financing Arrangements." Other 2021 Acquisition Activity On March 27, 2021, the Company acquired a privately-owned business for $22.8 million cash consideration. The acquired company increases the Safety-Kleen Sustainability Solutions segment's network within the south central United States. In connection with this acquisition, a preliminary goodwill amount of $16.3 million was recognized. The results of operations for this acquired business were not material in 2021. On June 29, 2021, the Company signed a definitive agreement with Vertex Energy, Inc. ("Vertex") to acquire certain assets related to Vertex's used motor oil collection and re-refinery business in an all-cash transaction for $140.0 million, subject to working capital and other adjustments. On January 25, 2022, Vertex and the Company mutually agreed to terminate the planned acquisition. In connection with the termination, in early 2022, Vertex paid Clean Harbors a breakup fee of $3.0 million pursuant to the agreement. 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 Sustainability Solutions segment's oil re-refining operations to the northeast United States. In connection with this acquisition, goodwill of $1.4 million was recognized. The results of operations of this acquired business were not material in 2020. 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 the operations of this acquisition are 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 has components included in both the Environmental Services and Safety-Kleen Sustainability Solutions segments. In connection with this acquisition, a goodwill amount of $5.2 million was recognized. |
INVENTORIES AND SUPPLIES
INVENTORIES AND SUPPLIES | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES AND SUPPLIES | INVENTORIES AND SUPPLIES Inventories and supplies consisted of the following (in thousands): December 31, 2021 December 31, 2020 Oil and oil related products $ 101,965 $ 76,209 Supplies 126,602 120,007 Solvent and solutions 8,099 8,812 Other 14,026 15,470 Total inventories and supplies $ 250,692 $ 220,498 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following (in thousands): December 31, 2021 December 31, 2020 Land $ 165,010 $ 139,776 Asset retirement costs (non-landfill) 19,105 16,407 Landfill assets 205,873 191,687 Buildings and improvements (1) 551,795 509,804 Camp equipment 127,680 159,021 Vehicles (2) 912,836 844,026 Equipment (3) 2,092,395 1,807,235 Furniture and fixtures 6,444 7,082 Construction in progress 60,447 24,378 4,141,585 3,699,416 Less - accumulated depreciation and amortization 2,278,410 2,174,118 Total property, plant and equipment, net $ 1,863,175 $ 1,525,298 ___________________________________ (1) Balances inclusive of gross ROU assets classified as finance leases of $8.9 million in both periods. (2) Balances inclusive of gross ROU assets classified as finance leases of $77.7 million and $47.2 million, respectively. (3) Balances inclusive of gross ROU assets classified as finance leases of $9.3 million both periods. Depreciation expense, inclusive of landfill and finance lease amortization was $263.4 million, $257.1 million and $265.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS In connection with the Changes in Operating Segments discussed in Note 2 "Significant Accounting Policies," the Company changed its operating segments in accordance with ASC 280, Segment Reporting . In addition, the Company concluded that it now has three reporting units. The Environmental Services operating segment has two reporting units consisting of (i) Environmental Sales and Service which now includes the legacy Environmental Sales and Service reporting unit and certain operations previously included within Safety-Kleen Environmental Services including the core service offerings of containerized waste, parts washers and vacuum services and (ii) Environmental Facilities, unchanged from prior year. The Safety-Kleen Sustainability Solutions operating segment is a single reporting unit which includes the legacy Safety-Kleen Oil reporting unit and the remaining operations of the legacy Safety-Kleen Environmental Services reporting unit primarily consisting of collection services for waste oil, anti-freeze and used oil filters as well as the sale of bulk blended re-refined oil and other automotive related fluid finished products. The Company allocated goodwill to the newly identified reporting units using a relative fair value approach. The table below has been recast to align with this new presentation. The changes in goodwill for the years ended December 31, 2021 and 2020 were as follows (in thousands): Environmental Services Safety-Kleen Sustainability Solutions Totals Balance at January 1, 2020 $ 401,680 $ 123,333 $ 525,013 Increase from current period acquisition — 1,439 1,439 Measurement period adjustments from prior period acquisitions 23 — 23 Decrease from disposition of business (674) — (674) Foreign currency translation 889 333 1,222 Balance at December 31, 2020 $ 401,918 $ 125,105 $ 527,023 Increase from current period acquisitions 683,463 16,349 699,812 Foreign currency translation 153 54 207 Balance at December 31, 2021 $ 1,085,534 $ 141,508 $ 1,227,042 The Company regularly assesses goodwill for impairment when it is more likely than not that events or changes in the business environment ("triggering events") would reduce the fair value of a reporting unit below its carrying value. The Company did not identify any triggering events in the years presented. Goodwill impairment is also tested annually. The Company conducted its annual impairment test of goodwill as of December 31, 2021 and determined that no adjustment to the carrying value of goodwill for any reporting unit was then necessary because the fair values of the reporting units exceeded their respective carrying values. The fair value of all reporting units was determined using an income approach based upon estimates of future discounted cash flows. The resulting estimates of fair value were validated through the consideration of other factors such as the fair value of comparable companies to the reporting units and a reconciliation of the sum of all estimated fair values of the reporting units to the Company’s overall market capitalization. In all cases, the estimated fair values of the reporting units significantly exceeded the respective carrying values. Significant judgments and unobservable inputs, categorized as Level 3 in the fair value hierarchy, are inherent in the impairment tests performed and include assumptions about the amount and timing of expected future cash flows, growth rates, and the determination of appropriate discount rates. Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. The Company believes that the assumptions used in its impairment tests are reasonable, but variations in any of the assumptions may result in different measurements of fair values. The impacts of any adverse business and market conditions which may impact the overall performance of the Company's reporting units will continue to be monitored. If the Company's reporting units do not achieve the financial performance that the Company expects, or if there is a significant prolonged change in demand for our products and services, it is possible that goodwill impairment charges may result. There can therefore be no assurance that future events will not result in an impairment of goodwill. As of December 31, 2021 and 2020, the Company's finite-lived and indefinite-lived intangible assets consisted of the following (in thousands): December 31, 2021 December 31, 2020 Cost Accumulated Net Cost Accumulated Net Permits $ 187,519 $ 102,408 $ 85,111 $ 183,766 $ 95,033 $ 88,733 Customer and supplier relationships 576,474 214,776 361,698 382,083 211,895 170,188 Other intangible assets 94,271 19,359 74,912 39,287 34,744 4,543 Total amortizable permits and other intangible assets 858,264 336,543 521,721 605,136 341,672 263,464 Trademarks and trade names 123,191 — 123,191 123,156 — 123,156 Total permits and other intangible assets $ 981,455 $ 336,543 $ 644,912 $ 728,292 $ 341,672 $ 386,620 The Company regularly monitors and assesses whether events or changes in circumstances relative to the Company's business might indicate that future cash flows attributable to the Company's asset groups may not be sufficient to recover the current value of those assets. During the periods presented, there were no events or changes in circumstances which would indicate that the carrying values of the Company's asset groups would not be recoverable and thus no impairment charge was recorded related to the Company's long-lived assets . If expectations of future cash flows were to decrease in the future as a result of worse than expected or prolonged periods of depressed activity, future impairments may become evident. Amortization expense of permits and other intangible assets for the years ended December 31, 2021, 2020 and 2019 were $34.7 million, $35.8 million and $35.2 million, respectively. During the year, the Company wrote off fully amortized intangible assets with a cost of $39.9 million during the year ended December 31, 2021. The expected amortization of the net carrying amount of finite-lived intangible assets at December 31, 2021 is as follows (in thousands): Years ending December 31, Expected 2022 $ 48,845 2023 44,595 2024 40,342 2025 38,485 2026 36,684 Thereafter 312,770 $ 521,721 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following (in thousands): December 31, 2021 December 31, 2020 Accrued insurance $ 102,853 $ 77,514 Accrued interest 19,785 19,697 Accrued compensation and benefits 133,604 81,437 Accrued income, real estate, sales and other taxes 29,954 25,843 Interest rate swap liability 17,383 33,630 Accrued other 87,835 57,702 $ 391,414 $ 295,823 As of December 31, 2021 and 2020, accrued insurance included employee medical insurance costs of $18.6 million and $9.4 million, respectively, and accruals for losses under our workers' compensation, comprehensive general liability and vehicle liability self-insurance programs of $82.8 million and $65.6 million, respectively. The increase in accrued insurance was predominately due to incremental balances from the acquisition of HydroChemPSC. Accrued compensation and benefits increased from the comparable period in 2020 primarily due to an increase in accrued bonus and incremental balances from the acquisition of HydroChemPSC. The majority of the increase in Accrued other is also due to the incremental balances from the acquisition of HydroChemPSC. The decrease in the fair value of the interest rate swap liability from December 31, 2020 is mainly due to the passage of time and changes in future interest rate expectation. For additional information relating to the derivative liability, see Note 11, "Financing Arrangements." |
CLOSURE AND POST-CLOSURE LIABIL
CLOSURE AND POST-CLOSURE LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
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 December 31, 2021 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 2,101 — 2,101 Accretion 3,254 3,399 6,653 Changes in estimates recorded to consolidated statement of operations 6,465 103 6,568 Changes in estimates recorded to consolidated balance sheet 481 201 682 Expenditures (3,445) (753) (4,198) Currency translation and other 155 49 204 Balance at December 31, 2020 48,412 39,514 87,926 Liabilities assumed in acquisitions — 1,446 1,446 New asset retirement obligations 2,443 — 2,443 Accretion 3,655 3,702 7,357 Changes in estimates recorded to consolidated statement of operations 2,287 396 2,683 Changes in estimates recorded to consolidated balance sheet 2,297 1,415 3,712 Expenditures (5,818) (784) (6,602) Currency translation and other 149 (11) 138 Balance at December 31, 2021 $ 53,425 $ 45,678 $ 99,103 During 2020, the Company took actions to begin the closure of two of its commercial landfill sites. The Altair landfill reached its permitted capacity and the Westmorland landfill was closed due to the costs of obtaining and maintaining permits and operating the landfill. The changes in estimate recorded to the consolidated statement of operations includes $2.3 million and $6.8 million in 2021 and 2020, respectively, related to the closure of these two commercial landfills. Anticipated payments (based on current estimated costs and anticipated timing of necessary regulatory approvals to commence work on closure and post-closure activities) for each of the next five years and thereafter are as follows (in thousands): Years ending December 31, 2022 $ 12,612 2023 11,452 2024 13,460 2025 10,791 2026 8,143 Thereafter 276,236 Undiscounted closure and post-closure liabilities 332,694 Less: Discount at credit-adjusted risk-free rate (158,941) Less: Undiscounted estimated closure and post-closure liabilities relating to airspace not yet consumed (74,650) Present value of closure and post-closure liabilities $ 99,103 |
REMEDIAL LIABILITIES
REMEDIAL LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Environmental Remediation Obligations [Abstract] | |
REMEDIAL LIABILITIES | REMEDIAL LIABILITIES The changes to remedial liabilities from January 1, 2020 through December 31, 2021 were as follows (in thousands): Remedial Remedial Remedial Total Balance at January 1, 2020 $ 1,851 $ 61,991 $ 50,331 $ 114,173 Accretion 90 2,607 1,701 4,398 Changes in estimates recorded to consolidated statement of operations (15) 2,873 1,272 4,130 Expenditures (61) (4,332) (3,810) (8,203) Currency translation and other — (79) 394 315 Balance at December 31, 2020 1,865 63,060 49,888 114,813 Liabilities assumed in acquisitions — — 1,216 1,216 Accretion 90 2,614 1,684 4,388 Changes in estimates recorded to consolidated statement of operations (126) (178) 600 296 Expenditures (49) (4,889) (3,966) (8,904) Currency translation and other — (820) 884 64 Balance at December 31, 2021 $ 1,780 $ 59,787 $ 50,306 $ 111,873 In 2021, there were no significant charges or benefits resulting from changes in estimates for remedial liabilities. During 2020, the Company increased its remedial liabilities for an inactive site and a Superfund site by $3.3 million and $1.8 million, respectively, due to updated regulatory remediation requirements received during the year. Anticipated payments at December 31, 2021 (based on current estimated costs and anticipated timing of necessary regulatory approvals to commence work on remedial activities) for each of the next five years and thereafter were as follows (in thousands): Years ending December 31, 2022 $ 14,416 2023 17,530 2024 12,098 2025 7,769 2026 6,002 Thereafter 73,185 Undiscounted remedial liabilities 131,000 Less: Discount at risk free rates (19,127) Total remedial liabilities $ 111,873 The following table presents the Company's estimated remedial liabilities and reasonably possible additional liabilities as of December 31, 2021 disaggregated by facility/site type (in thousands, except percentages): Type of Facility or Site Remedial % of Total Reasonably Possible Additional Liabilities (1) Facilities now used in active conduct of the Company's business (44 facilities) $ 42,875 38.3 % $ 8,520 Inactive facilities not now used in active conduct of the Company's business but most of which were acquired because the assumption of remedial liabilities for such facilities was part of the purchase price for the CSD assets (24 facilities) 59,801 53.5 11,237 Superfund sites (16 sites) 9,197 8.2 1,380 Total $ 111,873 100.0 % $ 21,137 ___________________________________ (1) Amounts represent the high end of the range of management's best estimate of the reasonably possible additional liabilities. The following table presents the Company's estimated remedial liabilities and reasonably possible additional liabilities as of December 31, 2021 disaggregated by facilities/sites which represent at least 5% of the total and with all other facilities/ sites combined (in thousands, except percentages): Location Type of Facility or Site Remedial Liabilities (1) % of Total Reasonably Possible Additional Liabilities (2) Baton Rouge, LA Closed incinerator and landfill $ 25,761 23.0 % $ 4,306 Bridgeport, NJ Closed incinerator 17,792 15.9 3,605 Mercier, Quebec Idled incinerator and legal proceedings 11,460 10.3 1,729 Linden, NJ Operating solvent recycling center 6,974 6.2 1,460 Various All other incinerators, landfills, wastewater treatment facilities and service centers (64 facilities) 40,689 36.4 8,657 Various Superfund sites (each representing less than 5% of total liabilities) (16 sites) 9,197 8.2 1,380 Total $ 111,873 100.0 % $ 21,137 _________________________________ (1) $24.1 million of the $111.9 million remedial liabilities include estimates related to the legal and administrative proceedings discussed in Note 17, "Commitments and Contingencies," as well as other such estimated remedial liabilities. (2) Amounts represent the high end of the range of management's best estimate of the reasonably possible additional liabilities. Revisions to remediation reserve requirements may result in upward or downward adjustments to income from operations in any given period. The Company believes that its extensive experience in the environmental services business, as well as its involvement with a large number of sites, provides a reasonable basis for estimating its aggregate liability. It is possible, however, that future changes in available technology, regulatory or enforcement developments, the results of environmental studies or other factors could necessitate the recording of additional liabilities or the revision of currently recorded liabilities that could be material. Since the Company's satisfaction of the liabilities will occur over many years, the Company cannot reasonably predict the nature or extent of possible future events or the impact that those events, if any, might have on the current estimates of remedial liabilities. |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Long-term Debt The following table is a summary of the Company's long-term debt (in thousands): Current Portion of Long-Term Debt: December 31, 2021 December 31, 2020 Secured senior term loans $ 17,535 $ 7,535 Long-Term Debt: Secured senior term loans due June 30, 2024 ("2024 Term Loans") $ 712,091 $ 719,626 Secured senior term loans due October 8, 2028 ("2028 Term Loans") 990,000 — 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 debt, at par 2,547,091 1,564,626 Unamortized debt issuance costs and discount, net (30,067) (14,985) Long-term debt, at carrying value $ 2,517,024 $ 1,549,641 Secured Senior Term Loans. On October 8, 2021, the Company, and substantially all of the Company’s domestic subsidiaries as guarantors, entered into Incremental Facility Amendment No. 2 to the Company’s existing Credit Agreement dated as of June 30, 2017 (the “Term Loan Agreement”). Incremental Facility Amendment No. 2 provides for the 2028 Term Loans in the aggregate principal amount of $1.0 billion which will mature on October 8, 2028. Proceeds from the issuance of the 2028 Term Loans were $981.3 million after debt discount and debt issuance costs and were used to fund the acquisition of HydroChemPSC. The 2028 Term Loans are in addition to the aggregate of $719.6 million of 2024 Term Loans which are also outstanding under the Term Loan Agreement and which will mature on June 30, 2024 (collectively referred to as the "Term Loans.") The 2028 Term Loans may be prepaid at any time without premium or penalty other than customary breakage costs with respect to Eurodollar based loans or if the Company engages in certain repricing transactions before April 9, 2022, in which event a 1.0% prepayment premium would be due. The 2024 Term Loans may be prepaid at any point without premium or penalty other than customary breakage costs. The Company’s obligations under the Term Loan Agreement with respect to both the 2024 Term Loans and the 2028 Term Loans are guaranteed by all of the Company’s domestic restricted subsidiaries and secured by liens on substantially all of the assets of the Company and the guarantors. The 2028 Term Loans under the Term Loan Agreement bear interest, at the Company’s election, at either of the following rates: (a) the sum of the Eurodollar Rate (as defined in the Term Loan Agreement) plus 2.00%, or (b) the sum of the Base Rate (as defined in the Term Loan Agreement) plus 1.00%, with the Eurodollar Rate being subject to a floor of 0.00% and the Base Rate being subject to a floor of 1.00%. The applicable interest rate margins for the 2024 Term Loans are 1.75% for Eurocurrency borrowings and 0.75% for base rate borrowings. Interest is paid monthly. The effective annual interest rate on December 31, 2021 was 2.04%. The Term Loan Agreement was also amended to adopt a LIBOR successor rate. Unsecured Senior Notes. On July 2, 2019, the Company completed a private placement of $545.0 million aggregate principal amount of 2027 Notes and $300.0 million aggregate principal amount of 2029 Notes (collectively, the "Notes"). The 2027 Notes will mature on July 15, 2027, and the 2029 Notes will mature on July 15, 2029. Interest payments on each series of the Notes are paid semiannually on January 15 and July 15. The Company may redeem all or any portion of the 2027 Notes prior to July 15, 2022 or the 2029 Notes prior to July 15, 2024 at a redemption price equal to 100% of the principal amount redeemed plus a make whole premium as of the date of redemption including accrued and unpaid interest, if any, up to the date of redemption. Additionally, prior to July 15, 2022 for the 2027 Notes and July 15, 2024 for the 2029 Notes, the Company may use cash proceeds of one or more equity offerings to redeem up to 35% in aggregate principal of the 2027 Notes or the 2029 Notes at a redemption price equal to 104.875% or 105.125%, respectively, plus accrued and unpaid interest thereon, if any, up to the date of redemption. After the dates in the preceding paragraph, the Company may redeem all or any portion of the Notes which remain outstanding at any time upon proper notice at the following redemption prices if redeemed during the twelve-month period commencing on July 15 of the years set forth below plus accrued and unpaid interest, if any, up to the date of redemption: 2027 Notes Year Percentage 2022 102.438 % 2023 101.219 % 2024 and thereafter 100.000 % 2029 Notes Year Percentage 2024 102.563 % 2025 101.281 % 2026 and thereafter 100.000 % Concurrently with the closing of the Notes in July 2019, the Company repurchased an aggregate principal amount of $845.0 million of previously outstanding notes due in 2021 ("2021 Notes") using a combination of the net proceeds from the sale of the Notes and available cash. The total amount paid in repurchasing the 2021 Notes was $850.2 million, including $4.0 million of accrued interest. In connection with this repurchase of the 2021 Notes, the Company recorded a loss on early extinguishment of debt of $6.1 million during the year ended December 31, 2019. The Notes and the related indenture contain various customary non-financial covenants and are guaranteed by substantially all of the Company’s current and future domestic subsidiaries. The Notes are effectively subordinated to the loan agreement under which the Company's Term Loans are outstanding, revolving credit facility and finance lease obligations to the extent of the value of the assets securing such secured indebtedness. The Notes are also effectively subordinated to all indebtedness and other liabilities of the Company's subsidiaries that are not guarantors of the Notes. As of December 31, 2021 and 2020, the estimated fair value of the Company’s outstanding long-term debt, including the current portion, was $2.6 billion and $1.6 billion, respectively. The Company’s estimates of the fair value of its long-term debt, 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 quotation, or alternative pricing sources with reasonable levels of price transparency for similar assets and liabilities. Revolving Credit Facility. On October 28, 2020, the Company and one of the Company's subsidiaries (the "Canadian Borrower") entered into an amended and restated credit agreement for the Company's revolving credit facility with Bank of America, N.A. (“BofA”), as agent for the lenders under the facility (the "Agent"). Under the amended and restated facility, the Company has the right to obtain revolving loans and letters of credit for a combined maximum of up to $350.0 million (with a sub-limit of $250.0 million for letters of credit) and the Canadian Borrower has the right to obtain revolving loans and letters of credit for a combined maximum of up to $50.0 million. Availability under the U.S. line is subject to a borrowing base primarily comprised of 85% of the eligible accounts receivable of the Company and its U.S. subsidiaries plus 100% of cash deposited in a controlled account with the Agent, and availability under the Canadian line is subject to a borrowing base primarily comprised of 85% of the eligible accounts receivable of the Company’s Canadian subsidiaries plus 100% of cash deposited in a controlled account with the Agent’s Canadian affiliate. Subject to certain conditions, the revolving credit facility will expire on October 28, 2025. Borrowings under the revolving credit facility bear interest at a rate of, at the Company’s option, either (i) LIBOR plus an applicable margin ranging from 1.50% to 1.75% per annum based primarily on the level of the Company’s average liquidity for the most recent 30 day period or (ii) BofA’s base rate plus an applicable margin ranging from 0.50% to 0.75% per annum based primarily on such average liquidity. There is also an unused line fee, calculated on the then unused portion of the lenders’ $400.0 million maximum commitments, ranging from 0.25% to 0.375% per annum of the unused commitment. For outstanding letters of credit, the Company pays to the lenders a fee equal to the then applicable LIBOR margin described above, and to the issuing banks a standard fronting fee and customary fees and charges in connection with all amendments, extensions, draws and other actions with respect to letters of credit. In the event that LIBOR ceases to be available during the term of the revolving credit facility, the amended and restated credit agreement provides procedures to determine a LIBOR successor rate. The Company utilizes letters of credit issued under the revolving credit facility primarily as security for our insurance program that includes casualty and financial assurance. The Company’s obligations under the revolving credit facility (including revolving loans and reimbursement obligations for outstanding letters of credit) are guaranteed by substantially all of the Company’s U.S. subsidiaries and secured by a first lien on the Company’s and its U.S. subsidiaries’ accounts receivable. The Canadian Borrower’s obligations under the facility are guaranteed by substantially all of the Company’s Canadian subsidiaries and secured by a first lien on the accounts receivable of the Canadian subsidiaries. On March 31, 2020, the Company borrowed $150.0 million under the revolving credit facility. The Company repaid the full amount of the borrowing during 2020. The revolving credit facility had no outstanding loan balances at December 31, 2021 and 2020 and had availability of $261.4 million and outstanding letters of credit of $138.6 million at December 31, 2021. 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 rates on the Term Loans are variable, the Company has effectively fixed the interest rate on $350.0 million principal of the outstanding 2024 Term Loans by entering into interest rate swap agreements in 2018 with a notional amount of $350.0 million ("2018 Swaps"). 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 rate of approximately 2.92%, resulting in an effective annual interest rate of approximately 4.67%. The Company recognizes derivative instruments as either assets or liabilities on the consolidated balance sheet at fair value. No ineffectiveness has been identified on these swaps and, therefore the change in fair value is recorded in stockholders’ equity as a component of accumulated other comprehensive loss. Amounts are reclassified from accumulated other comprehensive loss into interest expense on the consolidated statement of operations in the same period or periods during which the hedged transactions affect earnings. As of December 31, 2021 and 2020, the Company recorded a derivative liability with a fair value of $17.4 million and $33.6 million, respectively, within accrued expenses in connection with the 2018 Swap 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. In January 2022, the Company entered into interest rate swap agreements ("2022 Swaps") with a notional amount of $600.0 million to effectively fix the interest rate on $600.0 million principal of the outstanding 2028 Term Loans. Under the terms of the 2022 Swaps' agreements, the Company will receive interest based upon the variable rates on the 2028 Term Loans and pay a fixed amount of interest. The fixed rate on these instruments is 0.931% through June 30, 2023 and then increases to 1.9645% from July 1, 2023 through September 30, 2027. The variable rate on these instruments is designed to both mirror the current 2028 Term Loan interest payments and the successor rate upon the eventual sunsetting of the LIBOR rate. The Company will apply cash flow hedge accounting to these instruments which will begin being presented in the financial statements in the first quarter of 2022. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The domestic and foreign components of income before provision for income taxes were as follows (in thousands): For the years ended December 31, 2021 2020 2019 Domestic $ 223,438 $ 168,117 $ 156,571 Foreign 46,277 6,433 (8,332) Total $ 269,715 $ 174,550 $ 148,239 The provision for income taxes consisted of the following (in thousands, except percentages): For the years ended December 31, 2021 2020 2019 Current: Federal $ 42,480 $ 33,327 $ 20,482 State 18,126 14,575 14,564 Foreign 4,380 1,559 7,448 64,986 49,461 42,494 Deferred Federal 2,275 (965) 7,933 State (4,777) (2,506) 550 Foreign 3,984 (6,277) (478) 1,482 (9,748) 8,005 Provision for income taxes $ 66,468 $ 39,713 $ 50,499 Effective tax rate 24.6% 22.8% 34.1% The Company's effective income tax rate varied from the amount computed using the statutory federal income tax rate of 21% as follows (in thousands): For the years ended December 31, 2021 2020 2019 Tax expense at US statutory rate $ 56,640 $ 36,655 $ 31,130 State income taxes, net of federal benefit 12,101 9,837 10,597 Foreign rate differential 1,922 1,256 276 Valuation allowance (9,139) (11,339) 4,459 Uncertain tax position interest and penalties 263 (712) 474 Tax credits expired (used) 2,530 2,039 (50) Non-deductible compensation 2,326 1,406 1,922 Other (175) 571 1,691 Provision for income taxes $ 66,468 $ 39,713 $ 50,499 The valuation allowance benefits recognized in 2021 and 2020 are predominately related to taxable earnings in certain Canadian entities that benefited from the wage subsidy received under CEWS. In addition, foreign tax credits that expired in 2021 and 2020 had full valuation allowances which were also written off, contributing to the valuation allowance benefits in the table above. The foreign tax credit expirations and associated valuation allowance write offs had no net impact to the provision for income taxes in either year. During the year ended December 31, 2020, the Company recorded $1.3 million of tax benefits related to tax deductible foreign currency losses to accumulated other comprehensive loss and as such these benefits are not included within the provision for income taxes. See Note 15, "Accumulated Other Comprehensive Loss," for additional information related to these transactions. The components of the total net deferred tax assets and liabilities as of December 31, 2021 and 2020 were as follows (in thousands): 2021 2020 Deferred tax assets: Provision for doubtful accounts $ 10,188 $ 10,305 Closure, post-closure and remedial liabilities 28,206 28,665 Operating lease liabilities 42,218 38,151 Accrued expenses 20,455 16,797 Accrued compensation and benefits 24,504 11,372 Net operating loss carryforwards (1) 68,381 50,433 Tax credit carryforwards (2) 12,368 14,471 Interest rate swap liability 5,215 10,089 Stock-based compensation 2,705 3,040 Other 5,635 5,553 Total deferred tax assets 219,875 188,876 Deferred tax liabilities: Property, plant and equipment (273,883) (194,604) Operating lease right-of-use assets (41,260) (38,018) Permits and other intangible assets (138,241) (95,492) Prepaid expenses (10,212) (9,660) Total deferred tax liabilities (463,596) (337,774) Total net deferred tax liability before valuation allowance (243,721) (148,898) Less valuation allowance (69,806) (77,044) Net deferred tax liabilities $ (313,527) $ (225,942) ___________________________________ (1) As of December 31, 2021, the net operating loss carryforwards included (i) state net operating loss carryforwards of $280.6 million which will begin to expire in 2022, (ii) federal net operating loss carryforwards of $124.1 million which will begin to expire in 2024 and (iii) foreign net operating loss carryforwards of $116.0 million which will begin to expire in 2022. The increases in the state net operating loss carryforwards and federal net operating loss carryforwards are due to balances acquired in the HydroChemPSC acquisition. (2) As of December 31, 2021, the foreign tax credit carryforwards of $11.0 million will expire between 2022 and 2024. The Company has not accrued for any remaining undistributed foreign earnings. These amounts continue to be indefinitely reinvested in foreign operations and the amount of tax associated with the earnings is not expected to be material. A valuation allowance is required to be established when, based on an evaluation of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The components of the total valuation allowance as of December 31, 2021 and 2020 were as follows (in thousands): 2021 2020 Allowance related to: Foreign tax credits 11,047 14,127 Federal net operating losses 3,788 779 State net operating loss carryforwards 12,053 10,429 Foreign net operating loss carryforwards 26,697 29,839 Deferred tax assets of a Canadian subsidiary 10,701 11,468 Realized and unrealized capital losses 5,520 10,402 Total valuation allowance $ 69,806 $ 77,044 The changes to unrecognized tax benefits (excluding related penalties and interest) from January 1, 2019 through December 31, 2021, were as follows (in thousands): 2021 2020 2019 Unrecognized tax benefits, beginning of year $ 5,490 $ 6,414 $ 3,159 (Reductions) additions to prior year tax positions — (833) 3,354 Expirations — (203) (209) Foreign currency translation 6 112 110 Unrecognized tax benefits, end of year $ 5,496 $ 5,490 $ 6,414 The unrecognized tax benefits at December 31, 2021 if and when recognized will affect the annual effective tax rate. However, the balance at December 31, 2021 included $3.2 million of unrecognized tax benefits for Canadian Revenue Agency transfer pricing adjustments. Should these be recognized, the Company would request relief from double taxation. Therefore, an offsetting benefit of $3.2 million would also recognized resulting in no net effect on the annual effective tax rate. Due to expiring statute of limitation periods, the Company believes that total unrecognized tax benefits will decrease by approximately $0.3 million within the next 12 months. At December 31, 2021, 2020 and 2019, the Company had accrued interest of $2.3 million, $2.1 million and $1.7 million, respectively, relative to unrecognized tax benefits. Interest expense and penalties relative to unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019 were immaterial. The Company files U.S. federal income tax returns as well as income tax returns in various states and foreign jurisdictions. The Company may be subject to examination by the Internal Revenue Service for calendar years 2016 through 2020. The Company may be subject to examination by Canadian federal and provincial authorities for calendar years 2014 through 2020 and by state and local revenue authorities for calendar years 2015 through 2020. The Company has ongoing U.S. state and local jurisdictional audits, as well as Canadian federal and provincial audits, all of which the Company believes will not result in material liabilities. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following are computations of basic and diluted earnings per share (in thousands, except for per share amounts): For the years ended December 31, 2021 2020 2019 Numerator for basic and diluted earnings per share: Net income $ 203,247 $ 134,837 $ 97,740 Denominator: Weighted basic shares outstanding 54,514 55,479 55,845 Dilutive effect of equity-based compensation awards 247 211 284 Weighted dilutive shares outstanding 54,761 55,690 56,129 Basic earnings per share $ 3.73 $ 2.43 $ 1.75 Diluted earnings per share $ 3.71 $ 2.42 $ 1.74 For the years ended December 31, 2021, 2020 and 2019, all then outstanding performance awards and restricted stock awards were included in the calculation of diluted earnings per share except for 14,237, 53,667 and 122,785 respectively, of performance stock awards for which the performance criteria were not attained at the reporting dates and 67,981, 8,878 and 16,304 respectively, of restricted stock awards and performance stock awards which were excluded as their inclusion would have had an antidilutive effect. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITYThe Company's board of directors has authorized the repurchase of up to $600.0 million of the Company's common stock. The repurchase program authorizes the Company to purchase the Company's common stock on the open market or in privately negotiated transactions periodically in a manner that complies with applicable U.S. securities laws. The number of shares purchased and the timing of the purchases have depended and will depend on a number of factors including share price, cash required for future business plans, trading volume and other conditions. The Company has no obligation to repurchase stock under this program and may suspend or terminate the repurchase program at any time. During the years ended December 31, 2021, 2020 and 2019, the Company repurchased and retired a total of 0.6 million, 1.2 million and 0.3 million shares, respectively, of the Company's common stock for total costs of $54.4 million, $74.8 million and $21.4 million, respectively. As of December 31, 2021, an additional $155.4 million remained available to repurchase shares under this program. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2021 | |
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 years ended December 31, 2021, 2020 and 2019 were as follows (in thousands): Foreign Currency Translation Adjustments Unrealized (loss) gain on Available-for-Sale Securities Unrealized loss on Interest Rate Hedge Unrealized (loss) gain on unfunded pension liability Total Balance at January 1, 2019 $ (212,925) $ (69) $ (8,773) $ (1,604) $ (223,371) Other comprehensive income (loss) before reclassifications 25,130 (70) (14,401) 60 10,719 Amounts reclassified out of accumulated other comprehensive loss — 332 2,335 — 2,667 Tax expense — (50) — (16) (66) Other comprehensive income (loss) 25,130 212 (12,066) 44 13,320 Balance at December 31, 2019 (187,795) 143 (20,839) (1,560) (210,051) Other comprehensive income (loss) before reclassifications 10,212 (10) (20,970) (255) (11,023) Amounts reclassified out of accumulated other comprehensive loss — — 8,180 — 8,180 Tax benefit 1,349 2 — 66 1,417 Other comprehensive income (loss) 11,561 (8) (12,790) (189) (1,426) Balance at December 31, 2020 (176,234) 135 (33,629) (1,749) (211,477) Other comprehensive (loss) income before reclassifications (1,590) (361) 6,235 1,411 5,695 Amounts reclassified out of accumulated other comprehensive loss — — 10,011 — 10,011 Tax benefit (expense) — 76 — (317) (241) Other comprehensive (loss) income (1,590) (285) 16,246 1,094 15,465 Balance at December 31, 2021 $ (177,824) $ (150) $ (17,383) $ (655) $ (196,012) During the year ended December 31, 2020, the Company converted an intercompany loan with a foreign subsidiary to equity, which resulted in a deductible tax loss. The loan had been historically treated as a component of the Company’s investment in that subsidiary, and as a result, foreign currency gains and losses on the loan had been accumulated as a component of other comprehensive (loss) income. The tax benefit of $1.3 million, which was triggered by the conversions was therefore allocated to other comprehensive loss rather than net income. The amounts reclassified out of accumulated other comprehensive loss into the consolidated statement of operations, with presentation location, during the years ended December 31, 2021, 2020 and 2019 were as follows (in thousands): For the years ended December 31, Other Comprehensive Income Components 2021 2020 2019 Location Unrealized loss on available-for-sale securities $ — $ — $ (332) Other (expense) income, net Unrealized loss on interest rate hedge (10,011) (8,180) (2,335) Interest expense, net of interest income |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-Based Compensation In 2020, our shareholders approved the Clean Harbors, Inc. 2020 Stock Incentive Plan (the "2020 Plan"). 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 grants restricted stock awards and performance stock awards. The restricted stock awards generally vest over three Total stock-based compensation expense for the years ended December 31, 2021, 2020 and 2019 was $18.8 million, $18.5 million and $17.8 million, respectively. The total income tax benefit recognized in the consolidated statements of operations from stock-based compensation expense was $3.5 million, $4.2 million and $3.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. Restricted Stock Awards The following table summarizes information about restricted stock awards for the year ended December 31, 2021: Restricted Stock Number of Weighted Average Balance at January 1, 2021 493,879 $ 59.74 Granted 205,984 96.69 Vested (194,178) 58.12 Forfeited (53,488) 63.01 Balance at December 31, 2021 452,197 $ 76.88 As of December 31, 2021, there was $25.8 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. The total fair value of restricted stock vested during 2021, 2020 and 2019 was $17.7 million, $13.3 million and $16.8 million, respectively. Performance Stock Awards The following table summarizes information about performance stock awards for the year ended December 31, 2021: Performance Stock Number of Weighted Average Balance at January 1, 2021 254,449 $ 61.75 Granted 135,373 92.94 Vested (158,634) 61.52 Forfeited (61,431) 65.28 Balance at December 31, 2021 169,757 $ 85.56 As of December 31, 2021, there was $7.3 million of total unrecognized compensation cost arising from performance stock awards whereby the performance conditions either had been or were probable of being met. The total fair value of performance awards vested during 2021, 2020 and 2019 was $15.0 million, $3.5 million and $8.1 million, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal and Administrative Proceedings 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 government 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 December 31, 2021 and 2020, the Company had recorded reserves of $36.1 million and $29.8 million, respectively, 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 December 31, 2021 and 2020, the $36.1 million and $29.8 million, respectively, of reserves consisted of (i) $24.1 million and $24.0 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) $12.0 million and $5.8 million, respectively, primarily related to federal, state and provincial enforcement actions, which were included in accrued expenses on the consolidated balance sheets. As of December 31, 2021, the principal legal and administrative proceedings in which the Company was involved, or which had been terminated during 2021, 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 to a company unrelated to the Mercier Subsidiary two permits to dump organic liquids into lagoons on the property. 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 or results of operations. 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 December 31, 2021 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 61 proceedings (excluding cases which have been settled but not formally dismissed) as of December 31, 2021, wherein persons claim personal injury resulting from the use of Safety-Kleen's parts cleaning equipment or cleaning products. These proceedings typically involve allegations that the solvent used in Safety-Kleen's parts cleaning 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 warn adequately 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 of 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 December 31, 2021. From January 1, 2021 to December 31, 2021, 21 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, has included 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 PRPs or potential PRPs in connection with 131 sites which are subject to or are proposed to become subject to proceedings under federal or state Superfund laws. Of the 131 Superfund related sites, six (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 waste. Of the 125 third-party sites, 30 are now settled, 15 are currently requiring expenditures on remediation and 80 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 monetary liability could exceed $1.0 million at each of three of the 131 Superfund related 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 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 completed conducting the remedial investigation and feasibility study for Devil's Swamp, at which point the feasibility study, with several remedial alternatives, was submitted to the EPA for review. During the year ended December 31, 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 December 31, 2021, the Company has recorded its 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, but 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 waste 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 one other entity, 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 December 31, 2021, there were two proceedings for which the Company believes it is possible that the sanctions could equal or exceed $1.0 million. 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 Under the Company's insurance programs, coverage is obtained for catastrophic exposures, as well as those risks required to be insured by law or contract. The Company's policy is to retain a significant portion of certain expected losses related to workers' compensation, employee medical, comprehensive general liability and vehicle liability. A portion of these self-insured liabilities are managed through its wholly-owned captive insurance subsidiary. Provisions for losses expected under these programs are recorded based upon the Company's estimates of the aggregate liability for claims. The current deductible per participant per year for the employee medical insurance policy is $0.9 million. The current deductible per occurrence for workers' compensation is $1.0 million, general liability is $2.0 million and vehicle liability is $2.0 million. The retention per claim for the environmental impairment policy is $1.0 million. The Company maintains umbrella insurance to limit our exposure to certain catastrophic claim costs, including general liability and vehicle claim costs, which includes a $5.0 million annual aggregate self-insured corridor retention. At December 31, 2021 and 2020, the Company had accrued $82.8 million and $65.6 million, respectively, for its self-insurance liabilities (exclusive of employee medical insurance) using a risk-free discount rate of 0.97% and 0.29%, respectively. Anticipated payments for contingencies related to workers' compensation, comprehensive general liability and vehicle liability related claims at December 31, 2021 for each of the next five years and thereafter were as follows (in thousands): Years ending December 31, 2022 $ 29,956 2023 17,569 2024 12,113 2025 8,003 2026 6,250 Thereafter 9,930 Undiscounted self-insurance liabilities 83,821 Less: Discount (1,051) Total self-insurance liabilities (included in accrued expenses) $ 82,770 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company’s lease portfolio is predominately operating leases for real estate, vehicles and industrial equipment utilized in operations and rail cars. The Company presents operating lease balances separately on the consolidated balance sheets. The Company's finance leases relate to equipment, rail cars and certain real estate. The following table presents our finance lease balances and their classification on the consolidated balance sheets (in thousands): Finance Lease Balances (Classification) December 31, 2021 December 31, 2020 ROU assets (Property, plant and equipment, net) $ 81,267 $ 60,271 Current portion of lease liabilities (Accrued expenses) 10,893 5,840 Long-term portion of lease liabilities (Other long-term liabilities) 72,051 55,038 The Company’s lease expense was as follows (in thousands): For the years ended December 31, 2021 2020 2019 Operating lease cost $ 50,264 $ 53,194 $ 55,402 Finance lease cost: Amortization of ROU assets 9,504 4,966 1,142 Interest on lease liabilities 2,544 1,523 1,415 Total finance lease cost 12,048 6,489 2,557 Short-term lease cost 102,913 70,692 84,749 Variable lease cost 3,546 3,691 6,702 Total lease cost $ 168,771 $ 134,066 $ 149,410 Other information related to leases was as follows: Weighted Average Remaining Lease Term (years) December 31, 2021 December 31, 2020 Operating leases 4.4 5.1 Finance leases 8.1 9.3 Weighted Average Discount Rate December 31, 2021 December 31, 2020 Operating leases 4.35 % 4.89 % Finance leases 3.65 % 3.57 % For the years ended December 31, Supplemental Cash Flow Related Disclosures (in thousands) 2021 2020 2019 Cash paid for amounts related to lease liabilities: Operating cash flows from operating leases $ 50,963 $ 53,498 $ 56,240 Operating cash flows from finance leases 2,544 1,523 1,415 Financing cash flows from finance leases 8,458 4,469 586 ROU assets obtained in exchange for operating lease liabilities (1) 55,556 34,358 17,699 ROU assets obtained in exchange for finance lease liabilities 30,476 32,526 33,449 _____________ (1) Includes $34.3 million of operating leases acquired with the HydroChemPSC business At December 31, 2021, the Company's future lease payments under non-cancelable leases that have lease terms in excess of one year were as follows (in thousands): Years ending December 31, December 31, 2021 Operating Leases Finance Leases 2022 $ 56,124 $ 14,442 2023 44,515 12,915 2024 32,302 12,253 2025 20,599 11,578 2026 13,735 11,591 Thereafter 17,233 34,077 Total future lease payments 184,508 96,856 Amount representing interest (18,903) (13,912) Total lease liabilities $ 165,605 $ 82,944 |
LEASES | LEASES The Company’s lease portfolio is predominately operating leases for real estate, vehicles and industrial equipment utilized in operations and rail cars. The Company presents operating lease balances separately on the consolidated balance sheets. The Company's finance leases relate to equipment, rail cars and certain real estate. The following table presents our finance lease balances and their classification on the consolidated balance sheets (in thousands): Finance Lease Balances (Classification) December 31, 2021 December 31, 2020 ROU assets (Property, plant and equipment, net) $ 81,267 $ 60,271 Current portion of lease liabilities (Accrued expenses) 10,893 5,840 Long-term portion of lease liabilities (Other long-term liabilities) 72,051 55,038 The Company’s lease expense was as follows (in thousands): For the years ended December 31, 2021 2020 2019 Operating lease cost $ 50,264 $ 53,194 $ 55,402 Finance lease cost: Amortization of ROU assets 9,504 4,966 1,142 Interest on lease liabilities 2,544 1,523 1,415 Total finance lease cost 12,048 6,489 2,557 Short-term lease cost 102,913 70,692 84,749 Variable lease cost 3,546 3,691 6,702 Total lease cost $ 168,771 $ 134,066 $ 149,410 Other information related to leases was as follows: Weighted Average Remaining Lease Term (years) December 31, 2021 December 31, 2020 Operating leases 4.4 5.1 Finance leases 8.1 9.3 Weighted Average Discount Rate December 31, 2021 December 31, 2020 Operating leases 4.35 % 4.89 % Finance leases 3.65 % 3.57 % For the years ended December 31, Supplemental Cash Flow Related Disclosures (in thousands) 2021 2020 2019 Cash paid for amounts related to lease liabilities: Operating cash flows from operating leases $ 50,963 $ 53,498 $ 56,240 Operating cash flows from finance leases 2,544 1,523 1,415 Financing cash flows from finance leases 8,458 4,469 586 ROU assets obtained in exchange for operating lease liabilities (1) 55,556 34,358 17,699 ROU assets obtained in exchange for finance lease liabilities 30,476 32,526 33,449 _____________ (1) Includes $34.3 million of operating leases acquired with the HydroChemPSC business At December 31, 2021, the Company's future lease payments under non-cancelable leases that have lease terms in excess of one year were as follows (in thousands): Years ending December 31, December 31, 2021 Operating Leases Finance Leases 2022 $ 56,124 $ 14,442 2023 44,515 12,915 2024 32,302 12,253 2025 20,599 11,578 2026 13,735 11,591 Thereafter 17,233 34,077 Total future lease payments 184,508 96,856 Amount representing interest (18,903) (13,912) Total lease liabilities $ 165,605 $ 82,944 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2021 | |
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. As described in Note 2, during the first quarter of 2021, certain of the Company's businesses undertook a reorganization which included changes to the underlying business and management structures. The Company's chief operating decision maker also requested changes in the information that he regularly reviews for purposes of allocating resources and assessing performance so that information would align with the new operating structure of the business. Due to these changes, the Company reassessed its determination of operating segments in the first quarter of 2021 which resulted in a change in the operating segments. The Company consolidated the core services of Safety-Kleen Environmental Services into its Environmental Services segment, eliminated its Safety-Kleen segment and created the Safety-Kleen Sustainability Solutions segment. In addition, certain intercompany transactions previously recorded as Corporate Items have been allocated to the segments. All the historical balances presented below have been recast to reflect the impact of these changes. 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 tables reconcile third-party revenues to direct revenues for the years ended December 31, 2021, 2020 and 2019 (in thousands): For the year ended December 31, 2021 Environmental Safety-Kleen Sustainability Solutions Corporate Totals Third-party revenues $ 3,025,907 $ 779,360 $ 299 $ 3,805,566 Intersegment revenues, net 6,547 (6,547) — — Direct revenues $ 3,032,454 $ 772,813 $ 299 $ 3,805,566 For the year ended December 31, 2020 Environmental Safety-Kleen Sustainability Solutions Corporate Totals Third-party revenues $ 2,637,641 $ 506,166 $ 290 $ 3,144,097 Intersegment revenues, net (1,740) 1,740 — — Direct revenues $ 2,635,901 $ 507,906 $ 290 $ 3,144,097 For the year ended December 31, 2019 Environmental Safety-Kleen Sustainability Solutions Corporate Totals Third-party revenues $ 2,802,682 $ 608,372 $ 1,136 $ 3,412,190 Intersegment revenues, net (6,688) 6,688 — — Direct revenues $ 2,795,994 $ 615,060 $ 1,136 $ 3,412,190 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, stock-based compensation, depreciation and amortization, net interest expense, loss on early extinguishment of debt and provision for income taxes and excludes other gains, losses and 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 years ended December 31, 2021 2020 2019 Adjusted EBITDA: Environmental Services $ 659,718 $ 665,918 $ 600,413 Safety-Kleen Sustainability Solutions 227,354 83,214 128,249 Corporate Items (210,466) (175,328) (170,529) Total 676,606 573,804 558,133 Reconciliation to Consolidated Statements of Operations: Accretion of environmental liabilities 11,745 11,051 10,136 Stock-based compensation 18,839 18,502 17,816 Depreciation and amortization 298,135 292,915 300,725 Income from operations 347,887 251,336 229,456 Other expense (income), net 515 290 (2,897) Loss on early extinguishment of debt — — 6,131 Loss (gain) on sale of businesses — 3,376 (687) Interest expense, net of interest income 77,657 73,120 78,670 Income from operations before provision for income taxes $ 269,715 $ 174,550 $ 148,239 The following table presents assets by reported segment and in the aggregate (in thousands): December 31, 2021 December 31, 2020 Property, plant and equipment, net Environmental Services $ 1,374,913 $ 1,068,910 Safety-Kleen Sustainability Solutions 373,721 366,160 Corporate Items 114,541 90,228 Total property, plant and equipment, net $ 1,863,175 $ 1,525,298 Goodwill and Permits and other intangibles, net Environmental Services Goodwill $ 1,085,534 $ 401,918 Permits and other intangibles, net 498,739 228,237 Total Environmental Services 1,584,273 630,155 Safety-Kleen Sustainability Solutions Goodwill $ 141,508 $ 125,105 Permits and other intangibles, net 146,173 158,383 Total Safety-Kleen Sustainability Solutions 287,681 283,488 Total $ 1,871,954 $ 913,643 Geographic Information As of December 31, 2021 and 2020, the Company had property, plant and equipment, net of depreciation and amortization and permits and other intangible assets, net of amortization in the following geographic locations (in thousands): December 31, 2021 December 31, 2020 Total % of Total Total % of Total Property, plant and equipment, net United States $ 1,610,402 86.4 % $ 1,246,758 81.7 % Canada and other foreign 252,773 13.6 278,540 18.3 Total property, plant and equipment, net $ 1,863,175 100.0 % $ 1,525,298 100.0 % Permits and other intangibles, net United States $ 604,076 93.7 % $ 342,787 88.7 % Canada and other foreign 40,836 6.3 43,833 11.3 Total permits and other intangibles, net $ 644,912 100.0 % $ 386,620 100.0 % The following table presents the total assets by geographical area (in thousands): December 31, 2021 December 31, 2020 United States $ 5,077,585 $ 3,447,811 Canada and other foreign 576,114 683,709 Total $ 5,653,699 $ 4,131,520 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of ConsolidationThe accompanying consolidated financial statements include the accounts of Clean Harbors, Inc. and its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions, which are evaluated on an ongoing basis, that affect the amounts reported in the Company's consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable at the time under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and disclosure, if any, of contingent assets and liabilities and reported amounts of revenues and expenses. Actual results could differ from those estimates and judgments. |
Segment Reporting, Policy | Changes in Operating Segments During the first quarter of 2021, the Company reorganized its Safety-Kleen business. The collection services for waste oil, used oil filters, antifreeze and related items and bulk blended oil sales operations were combined with the Safety-Kleen Oil business to form the Safety-Kleen Sustainability Solutions business. Under this structure, Safety-Kleen Sustainability Solutions will encompass both sides of the spread that the Company manages in its re-refinery business. Concurrently with this change, the Company consolidated the Safety-Kleen branches' core offerings, including containerized waste, parts washer and vacuum services, into the legacy Clean Harbors Environmental Services sales and service operations. In restructuring the operations of the Company in this manner, the information that the chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed to conform to this new operating structure of the business and the Company reevaluated the identification of its operating segments. In accordance with ASC 280, Segment Reporting, Environmental Services and Safety-Kleen Sustainability Solutions are the Company's operating segments and reportable segments starting in the first quarter of 2021, with the operations not managed through the Company's operating segments described above continuing to be recorded as Corporate Items. Segment financial information has been retrospectively adjusted to reflect these changes. The impact of the segment change has been reflected throughout our financial statements and related disclosures, including here in Note 2, "Significant Accounting Policies," as well as in Note 3, "Revenues," Note 4, "Business Combinations," Note 7, "Goodwill and Other Intangible Assets" and Note 19, "Segment Reporting." |
Cash, Cash Equivalents and Uncashed Checks | Cash, Cash Equivalents and Uncashed Checks Cash consists primarily of cash on deposit and money market accounts. Marketable securities with maturities of three months or less from the date of purchase are classified as cash equivalents. The Company's cash management program with its revolving credit lender allows for the maintenance of a zero balance in the U.S. bank disbursement accounts that are used to issue vendor and payroll checks. When checks are presented to the bank for payment, cash deposits in amounts sufficient to fund the checks are made, at the Company's discretion, either from funds provided by other accounts or under the terms of the Company's revolving credit facility. Checks that have been written to vendors or employees but have not yet been presented for payment at the Company's bank are classified as uncashed checks as part of accounts payable and changes in the balance are reported as a financing activity in the consolidated statements of cash flows. |
Marketable Securities | Marketable SecuritiesThe Company, through its wholly-owned captive insurance subsidiary, invests in marketable securities consisting of U.S. Treasury securities, corporate notes and bonds as well as commercial paper.Realized gains and losses on sales of available-for-sale marketable securities in the years presented were immaterial. The majority of the marketable securities have a remaining maturity of less than one year and fair value approximates cost. |
Allowances for Doubtful Accounts | Allowance for Doubtful Accounts and Revenue Allowance On a regular basis, the Company evaluates its accounts receivable and establishes the allowance for doubtful accounts based on an evaluation of certain criteria and evidence of collection uncertainty including historical collection trends, reasonable expectations of future collections, current economic trends and changes in customer payment patterns. Past-due receivable balances are written off when the Company's collection efforts have been deemed unsuccessful in collecting the outstanding balance due. Due to the nature of the Company's businesses and the invoices that result from the services provided, customers may withhold payments and attempt to renegotiate amounts invoiced. In addition, for some of the services provided, the Company's invoices are based on quotes that, in limited instances can result in adjustments to revenue subsequent to billing. Based on industry knowledge and historical trends, the Company records a revenue allowance in anticipation of these expected adjustments. This practice causes the volume of activity flowing through the revenue allowance during the year to be higher than the balance at the end of the year. The revenue allowance is intended to cover the net amount of revenue adjustments that may need to be credited to customers' accounts in future periods. Management determines the appropriate total revenue allowance by evaluating the following factors on an invoice-by-invoice basis as well as on a consolidated level: trends in adjustments to previously billed amounts, existing economic conditions, communications with customers and other information as deemed applicable. Revenue allowance estimates can differ from the actual adjustments, but historically the revenue allowance has been sufficient to cover the net amount of the reserve adjustments issued in subsequent reporting periods. |
Revenue Allowance | Allowance for Doubtful Accounts and Revenue Allowance On a regular basis, the Company evaluates its accounts receivable and establishes the allowance for doubtful accounts based on an evaluation of certain criteria and evidence of collection uncertainty including historical collection trends, reasonable expectations of future collections, current economic trends and changes in customer payment patterns. Past-due receivable balances are written off when the Company's collection efforts have been deemed unsuccessful in collecting the outstanding balance due. Due to the nature of the Company's businesses and the invoices that result from the services provided, customers may withhold payments and attempt to renegotiate amounts invoiced. In addition, for some of the services provided, the Company's invoices are based on quotes that, in limited instances can result in adjustments to revenue subsequent to billing. Based on industry knowledge and historical trends, the Company records a revenue allowance in anticipation of these expected adjustments. This practice causes the volume of activity flowing through the revenue allowance during the year to be higher than the balance at the end of the year. The revenue allowance is intended to cover the net amount of revenue adjustments that may need to be credited to customers' accounts in future periods. Management determines the appropriate total revenue allowance by evaluating the following factors on an invoice-by-invoice basis as well as on a consolidated level: trends in adjustments to previously billed amounts, existing economic conditions, communications with customers and other information as deemed applicable. Revenue allowance estimates can differ from the actual adjustments, but historically the revenue allowance has been sufficient to cover the net amount of the reserve adjustments issued in subsequent reporting periods. |
Credit Concentration | Credit Concentration Concentration of credit risks in accounts receivable is limited due to the large number of customers comprising the Company's customer base throughout North America. The Company maintains policies over credit extension that include credit evaluations, credit limits and collection monitoring procedures on a customer-by-customer basis. However, the Company generally does not require collateral before services are performed. No individual customer accounted for more than 10% of accounts receivable or more than 10% of total direct revenues in the periods presented. |
Inventories and Supplies | Inventories and Supplies Inventories are stated at the lower of cost or market. The cost of oil and oil products as well as the cost of supplies and drums, solvent and solution and other inventories is principally determined on a first-in, first-out ("FIFO") basis. The Company |
Property, Plant and Equipment, net (excluding landfill assets and finance lease right-of-use assets) | Property, Plant and Equipment, net (excluding landfill assets and finance lease right-of-use assets) Property, plant and equipment, net is stated at cost less accumulated depreciation. Expenditures for major renewals and improvements which extend the life or usefulness of the asset are capitalized. Items of an ordinary repair or maintenance nature are charged directly to operating expense as incurred. Gains and losses on the sale of property, plant and equipment are included in other (expense) income, net. During the construction and development period of an asset, the costs incurred are classified as construction-in-progress. When the asset is ready for its intended use, the asset is reclassified to an appropriate asset classification and depreciation or amortization commences. The Company depreciates and amortizes the capitalized cost of these assets, using the straight-line method as follows: Asset Classification Estimated Useful Life Buildings and building improvements Buildings 20-42 years Leasehold and building improvements 2-45 years Camp and lodging equipment 8-15 years Vehicles 2-15 years Equipment Capitalized software and computer equipment 3-5 years Containers and railcars 8-16 years All other equipment 4-30 years Furniture and fixtures 5-8 years |
Business Combinations | Business Combinations In accordance with the acquisition method of accounting, the purchase price paid for an acquisition is allocated to the assets and liabilities acquired based upon their estimated fair values as of the acquisition date, with the excess of the purchase price over the net assets acquired recorded as goodwill. As required, a preliminary fair value is determined once a business is acquired, with the final determination of the fair value being completed no later than one year from the date of acquisition. |
Goodwill | Goodwill Goodwill is comprised of the purchase price of business acquisitions in excess of the fair value of the net assets acquired. Goodwill is reviewed for impairment annually as of December 31 or when events or changes in the business environment indicate the carrying value of a reporting unit may exceed its fair value. This review is performed by comparing the fair value of each reporting unit to its carrying value, including goodwill. If the fair value is less than the carrying amount, a loss is recorded for the excess of the carrying value over the fair value up to the carrying amount of goodwill. We determine our reporting units by identifying the components of each operating segment. As of December 31, 2021, using our segment conclusions then in place, we had three reporting units consisting of, Environmental Sales and Service, Environmental Facilities and Safety-Kleen Sustainability Solutions. See Note 7, "Goodwill and Other Intangible Assets," for additional information related to the Company's goodwill impairment tests. |
Permits and other intangibles | Permits and Other Intangibles Costs related to acquiring licenses, permits and intangible assets, such as legal fees, site surveys, engineering costs and other expenditures are capitalized. Other intangible assets consist primarily of customer and supplier relationships, trademarks and trade names and developed technology. Permits relating to landfills are amortized on a units-of-consumption basis. All other permits are amortized over periods ranging from five two All finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. When such factors and circumstances exist, management compares the projected undiscounted future cash flows associated with the related asset or group of assets to the carrying amount. The impairment loss, if any, is measured as the excess of the carrying amount over the fair value of the asset or group of assets. |
Landfill Accounting | Landfill Accounting The Company amortizes landfill improvements and certain landfill-related permits over the estimated useful lives. The units-of-consumption method is used to amortize land, landfill cell construction, asset retirement costs and remaining landfill cells and sites. The Company also utilizes the units-of-consumption method to record closure and post-closure obligations for landfill cells and sites. Under the units-of-consumption method, the Company includes future estimated construction and asset retirement costs, as well as costs incurred to date, in the amortization base of the landfill assets. Additionally, where appropriate, as described below, the Company includes probable expansion airspace that has yet to be permitted in the calculation of the total remaining useful life of the landfill. If it is determined that expansion capacity should no longer be considered in calculating the recoverability of a landfill asset, the Company may be required to recognize an asset impairment or incur significantly higher amortization expense. If at any time the Company makes the decision to abandon the expansion effort, the capitalized costs related to the expansion effort are expensed immediately. Landfill assets —Landfill assets include the costs of landfill site acquisition, permits and cell construction incurred to date. These amounts are recorded at cost, which includes capitalized interest as applicable. Landfill assets, net of amortization, are combined with management's estimate of the costs required to complete construction of the landfill to determine the amount to be amortized over the remaining estimated useful economic life of a site. Amortization of landfill assets is recorded on a units-of-consumption basis, such that the landfill assets should be completely amortized at the date the landfill ceases accepting waste. Amortization totaled $13.7 million, $10.9 million and $12.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Changes in the determination of when the landfill will cease accepting waste, either through a business decision by the Company, determination that expansion capacity should no longer be considered probable or changes in estimates on annual airspace consumption, will impact the amortization expense of the landfill assets. Changes in estimated costs to complete construction are applied prospectively to the amortization rate. Landfill capacity —Landfill capacity, which is the basis for the amortization of landfill assets and for the accrual of final closure and post-closure obligations, represents total permitted airspace plus unpermitted airspace that management believes is highly probable of ultimately being permitted. As of December 31, 2021, there were no unpermitted expansions included in the Company's landfill accounting model. If actual expansion airspace is significantly different from management's estimate of expansion airspace, the amortization rates used for the units-of-consumption method would change, therefore impacting our profitability. As of December 31, 2021, the Company had 9 active landfill sites (including the Company's two non-commercial landfills), which have estimated remaining lives (based on anticipated waste volumes and remaining highly probable airspace) as follows: Facility Name Location Remaining Permitted Remaining Highly Probable Airspace Buttonwillow California 21 5,500 Deer Park Texas 1 32 Deer Trail Colorado 26 1,572 Grassy Mountain Utah 40 4,608 Kimball Nebraska 5 120 Lambton Ontario, Canada 48 4,534 Lone Mountain Oklahoma 16 3,617 Ryley Alberta, Canada 3 455 Sawyer North Dakota 84 3,346 23,784 At December 31, 2021 and 2020, the Company had no cubic yards of permitted, but not highly probable, airspace. The following table presents the remaining highly probable airspace from January 1, 2019 through December 31, 2021 (in thousands of cubic yards): 2021 2020 2019 Remaining capacity, beginning of year 24,716 28,494 29,760 Changes in highly probable airspace, net — (2,962) — Consumed (932) (816) (1,266) Remaining capacity, end of year 23,784 24,716 28,494 The Company is in the process of closing two commercial landfill sites, Altair and Westmorland. These landfills are classified as inactive with no airspace at either landfill being consumed in 2021. During 2020, the Altair landfill, a non-hazardous landfill, reached permitted capacity. Airspace consumed from the Altair landfill in the years ended December 31, 2020 and 2019 was 25 and 132 thousand cubic yards, respectively. During 2020, the Company also decided to close the Westmorland landfill, a hazardous landfill, due to the costs of obtaining and maintaining permits and operating the landfill. No airspace had been consumed at the Westmorland landfill in any period presented. The change in the highly probable airspace, net in 2020 is predominately the result of the Company's decision to close the Westmorland and Altair landfills. Amortization of cell construction costs and accrual of cell closure obligations —Landfills are typically comprised of a number of cells, which are constructed within a defined acreage (or footprint). The cells are typically discrete units, which require both separate construction and separate capping and closure procedures. Cell construction costs are the costs required to excavate and construct the landfill cell. These costs are typically amortized on a units-of-consumption basis, such that they are completely amortized when the specific cell ceases accepting waste. In some instances, the Company has landfills that are engineered and constructed as "progressive trenches." In progressive trench landfills, a number of contiguous cells form a progressive trench. In those instances, the Company amortizes cell construction costs over the airspace within the entire trench, such that the cell construction costs will be fully amortized at the end of the trench useful life. The design and construction of a landfill does not create a landfill asset retirement obligation. Rather, the asset retirement obligation for cell closure (the cost associated with capping each cell) is incurred in relatively small increments as waste is placed in the landfill. Therefore, the cost required to construct the cell cap is capitalized as an asset retirement cost and a liability of an equal amount is established, based on the discounted cash flow associated with each capping event, as airspace is consumed. Spending for cell capping is reflected as environmental expenditures within operating activities in the consolidated statements of cash flows. Landfill final closure and post-closure liabilities —The balance of landfill final closure and post-closure liabilities at December 31, 2021 and 2020 was $53.4 million and $48.4 million, respectively. The Company has material financial commitments for the costs associated with requirements of the Environmental Protection Agency ("EPA") and the comparable regulatory agency in Canada for landfill final closure and post-closure activities. The Company develops estimates for the cost of these activities based on an evaluation of site-specific facts and circumstances, including the Company's interpretation of current regulatory requirements and proposed regulatory changes. Such estimates may change in the future due to various circumstances including, but not limited to, permit modifications, changes in legislation or regulations, technological changes and results of environmental studies. Final closure costs are the costs incurred after the site ceases to accept waste, but before the landfill is certified as closed by the applicable state regulatory agency. These costs generally include the costs required to cap the final cell of the landfill (if not included in cell closure), the costs required to dismantle certain structures for landfills and other landfill improvements, and regulation-mandated groundwater monitoring and leachate management. Post-closure costs involve the maintenance and monitoring of a landfill site that has been certified closed by the applicable regulatory agency. These costs generally include groundwater monitoring and leachate management. Regulatory post-closure periods are generally 30 years after landfill closure. Final closure and post-closure obligations are accrued on a units-of-consumption basis, such that the present value of the final closure and post-closure obligations are fully accrued at the date the landfill ceases accepting waste. |
Non-Landfill Closure and Post-Closure Liabilities | Non-Landfill Closure and Post-Closure Liabilities The balance of non-landfill closure and post-closure liabilities at December 31, 2021 and 2020 was $45.7 million and $39.5 million, respectively. Non-landfill closure and post-closure obligations arise when the Company commences non-landfill facility operations and include costs required to dismantle and decontaminate certain structures and other costs incurred during the closure process. Post-closure costs, if required, include associated maintenance and monitoring costs as required by the closure permit. Post-closure periods are performance-based and are not typically specified in terms of years in the closure permit, but generally range from 10 to 30 years or more. The Company records its non-landfill closure and post-closure liability by: (i) estimating the current cost of closing a non-landfill facility and the post-closure care of that facility, if required, based upon the closure plan that the Company is required to follow under its operating permit, or in the event the facility operates with a permit that does not contain a closure plan, based upon legally enforceable closure commitments made by the Company to various government agencies; (ii) estimates as to when future operations may cease; (iii) cost estimates of closing the non-landfill facility using the inflation rate to the time of closing; and (iv) discounting the future value back to the present using the credit-adjusted risk-free interest rate. The estimates for non-landfill closure and post-closure liabilities are inherently uncertain due to the possibility that permit and regulatory requirements will change in the future, impacting the estimation of total costs and the timing of the expenditures. Management reviews non-landfill closure and post-closure liabilities for changes to key assumptions that would impact the amount of the recorded liabilities. Changes that would prompt management to revise a liability estimate include changes in legal requirements that impact the Company's expected closure plan or scope of work, in the market price of a significant cost item, in the estimate as to when future operations at a location might cease or in the expected timing of the costs. Changes in estimates for non-landfill closure and post-closure events immediately impact the liability and the value of the corresponding asset. If a change is made to a fully-amortized asset, the adjustment is charged immediately to expense. When a change in estimate relates to an asset that has not been fully amortized, the adjustment to the asset is recognized in income prospectively as a component of amortization. Historically, changes to non-landfill closure and post-closure estimates have not been material. |
Remedial Liabilities | Remedial Liabilities The balance of remedial liabilities at December 31, 2021 and 2020 was $111.9 million and $114.8 million, respectively. Remedial liabilities, including Superfund liabilities, include the costs of removal or containment of contaminated material, treatment of potentially contaminated groundwater and maintenance and monitoring costs necessary to comply with regulatory requirements. Most of the Company's remedial liabilities relate to the active and inactive hazardous waste treatment and disposal facilities which the Company acquired and Superfund sites owned by third parties for which the Company, 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. The Company's estimate of remedial liabilities involves an analysis of such factors as: (i) the nature and extent of environmental contamination (if any); (ii) the terms of applicable permits and agreements with regulatory authorities as to cleanup procedures and whether modifications to such permits and agreements will likely need to be negotiated; (iii) the cost of performing anticipated cleanup activities based upon current technology; and (iv) in the case of Superfund and other sites where other parties will also be responsible for a portion of the cleanup costs, the likely allocation of such costs and the ability of such other parties to pay their share. The measurement of remedial liabilities is reviewed at least quarterly and changes in estimates are recognized in the consolidated statements of operations when identified. The Company periodically evaluates potential remedial liabilities at sites that it owns or operates or to which the Company or the sellers of the Chemical Services Division of Safety-Kleen ("CSD") assets (or the respective predecessors of the Company or such sellers) transported or disposed of waste, including 131 Superfund sites as of December 31, 2021. The Company periodically reviews and evaluates sites requiring remediation giving consideration to the nature (i.e., owner, operator, arranger, transporter or generator) and the extent (i.e., amount and nature of waste hauled to the location, number of years of site operations or other relevant factors) of the Company's (or such sellers') alleged connection with the site, the extent (if any) to which the Company believes it may have an obligation to indemnify cleanup costs in connection with the site, the regulatory context surrounding the site, the accuracy and strength of evidence connecting the Company (or such sellers) to the location, the number, connection and financial ability of other named and unnamed PRPs and the nature and estimated cost of the likely remedy. Where the Company concludes that it is probable that a liability has been incurred and an amount can be estimated, a liability is recognized. Remedial liabilities are inherently difficult to estimate. Estimating remedial liabilities requires that the existing environmental contamination be understood. There are risks that the actual quantities of contaminants differ from the results of the site investigation, and that contaminants exist that have not been previously identified. In addition, the amount of remedial liabilities recorded is dependent on the remedial method selected. There is a risk that funds will be expended on a remedial solution that is not successful, which could result in the Company incurring the incremental costs of an alternative solution. Such estimates, which are subject to change, are subsequently revised if and when additional or new information becomes available. Remedial liabilities are discounted when the timing of the payments is determinable and the amounts are estimable. In the case of remedial liabilities assumed in connection with acquisitions, acquired liabilities are recorded at fair value as of the dates of the acquisitions calculated by inflating costs in current dollars using an estimate of future inflation rates as of the respective acquisition dates until the expected time of payment, and then discounting the amount of the payments to their present value using a risk-free discount rate as of the acquisition dates. Discount rates used in the present value determination of the Company's remedial liabilities range from 1.37% to 4.90%. |
Self Insurance Liabilities | Self-Insurance Liabilities The Company self-insures a significant portion of expected losses related to workers' compensation, employee medical, comprehensive general liability and vehicle liability. Liabilities associated with these losses are recorded based on the Company's estimates of the ultimate cost to settle incurred claims. These recorded liabilities are estimated based on independent actuarial estimates and judgments which consider the frequency and settlement amount of historical claims data. |
Revenue recognition | Revenue Recognition The Company generates service and product revenues through the following operating segments: Environmental Services and Safety-Kleen Sustainability Solutions. The Company's Environmental Services operating segment generally has four sources of revenue and the Safety-Kleen Sustainability Solutions operating segment has two sources of revenue. The Company recognizes revenue when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The majority of the Company’s revenues are for services, which are recognized based on time and materials incurred at contractually agreed-upon rates. Product revenues are recognized when the products are delivered and control transfers to the customer. The Company’s payment terms vary by the type of customers and the products or services offered. The periods between invoicing and when payments are due are not significant. Amounts billed to customers related to shipping and handling are classified as revenue, and the Company's shipping and handling costs are included in costs of revenues. In the course of operations, the Company collects sales tax and other excise taxes from its customers and recognizes a current liability, which is then relieved when the taxes are remitted to the appropriate government authorities. The Company excludes sales and other excise taxes that it collects from customers from its revenues. 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. The Company's significant sources of revenue include: Technical Services —Technical Services contribute to the revenues of the Environmental Services operating segment. Revenues for these services 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 as a basis for measuring the satisfaction of the performance obligation. 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 and the related costs from waste that is not yet completely processed and disposed of are deferred. The deferred revenues and costs are recognized when the 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 and Emergency Response Services contribute to the revenues of the Environmental Services operating segment. Field Services revenues are generated from cleanup services at customer sites, including those managed by municipalities and utility providers, 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, hydro excavation, manhole/vault clean outs, 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 contribute to the revenues of the Environmental Services operating segment. These 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, specialty cleaning services including chemical cleaning, pigging and high and ultra-high pressure water cleaning, leak detection and repair, daylighting, production services and upstream energy services. 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. Safety-Kleen Environmental Services —Safety-Kleen Environmental Services revenues contribute both to the Environmental Services operating segment and the Safety-Kleen Sustainability Solutions operating segment depending upon the nature of such revenues and operating responsibilities relative to driving these revenues. Revenues from providing containerized waste handling and disposal services, parts washer services and vacuum services, referred to collectively as the Safety-Kleen branches' core service offerings, contribute to the revenues of the Environmental Services operating segment. In addition, sales of packaged blended oil products and other complementary product sales contribute to the revenues of the Environmental Services operating segment. Revenues generated from waste oil, anti-freeze and oil filter collection services, sales of bulk blended oil products and sales of bulk automotive fluids contribute to the Safety-Kleen Sustainability Solutions operating segment. Generally, the revenue from services is 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 duration of such services can be over a number of hours or several days. 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. Containerized waste services consist of profiling, collecting, transporting and recycling or disposing of a wide variety of waste. Related 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. 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. Safety-Kleen Oil —Safety-Kleen Oil related sales contribute to the revenues of the Safety-Kleen Sustainability Solutions segment. These revenues 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. |
Foreign Currency | Foreign Currency The Company has international operations, substantially all of which are located in Canada from an operational perspective with more limited administrative support services located in India. The functional currencies of foreign operations are the local currency and therefore assets and liabilities of those foreign operations are translated to U.S. Dollars at the exchange rate in effect at the balance sheet date and revenue and expenses at the average exchange rate for the period. Gains and losses from the translation of the consolidated financial statements of foreign subsidiaries into U.S. Dollars are included in stockholders' equity as a component of accumulated other comprehensive loss. Gains and losses from transactions not denominated in the functional currency of an entity are recognized in the consolidated statements of operations. Recorded balances that are denominated in a currency other than the functional currency are remeasured to the functional currency using the exchange rate at the balance sheet date and gains or losses are recorded in the consolidated statements of operations. |
Defined Contribution Plan | Defined Contribution PlanThe Company has defined contribution plans under which eligible employees may contribute up to the maximum amount as provided by law. |
Advertising Expense | Advertising Expense Advertising costs are expensed as incurred. Advertising expense was $6.0 million in 2021, $9.0 million in 2020 and $9.8 million in 2019. |
Government Grants | 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, providing companies, among other things, tax credits for a portion of wages paid to qualifying employees. Additionally, the Canadian government enacted the Canada Emergency Wage Subsidy ("CEWS") to help employers offset a portion of their employee wages. These programs (collectively referred to as "Government Programs") were extended in 2021. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period. In addition, the Company issues awards with performance targets established prior to or at the grant date. The expense for these awards is recognized over the requisite service period when management believes it is probable those performance targets will be achieved. The fair value of the Company's grants are based on the closing price of the Company's common stock on the respective dates of grant. Forfeitures are recognized as they occur. Stock-based compensation is recognized in selling, general and administrative expense. |
Income Taxes | Income Taxes Current income tax expense approximates cash to be paid or refunded for taxes for the applicable period. Deferred tax expense or benefit is the result of changes between deferred tax assets and liabilities. Deferred tax assets and liabilities are determined based upon the temporary differences between the financial statement basis and tax basis of assets and liabilities as well as from net operating loss and tax credit carryforwards as measured by the enacted tax rates which will be in effect when these differences reverse. The effect of a change in tax rates on deferred tax assets and liabilities is generally recognized in income in the period that includes the enactment date. The Company evaluates the recoverability of future tax deductions and credits and a valuation allowance is established by tax jurisdiction when, based on an evaluation of both positive and negative objective verifiable evidence, it is more likely than not that some portion or all of deferred tax assets will not be realized. The Company recognizes and measures a tax benefit from uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The Company recognizes a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company adjusts these liabilities when its judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate or future recognition of an unrecognized benefit. These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined. Liabilities for unrecognized tax benefits are included within other long-term liabilities in the consolidated balance sheets. The Company recognizes interest and penalties related to unrecognized tax benefits within the provision for income taxes line in the consolidated statements of operations. Accrued interest and penalties are included within the other long-term liabilities line in the consolidated balance sheets. |
Earnings per Share ("EPS") | Earnings per Share ("EPS") Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS gives effect to all potentially dilutive common shares that were outstanding during the period. |
Leases | Leases The Company’s leases predominately relate to real estate, equipment, such as vehicles and industrial equipment utilized in operations, and rail cars utilized in connection with the Company’s transportation needs. Contracts are reviewed at inception to determine if the arrangement is a lease and, if so, whether it is an operating or finance lease. For all of its leases, the Company has elected not to separate lease and nonlease components, such as common area maintenance. The Company generally enters into long-term real estate leases with three two Operating and finance leases with terms exceeding one year are recognized as ROU assets and lease liabilities and measured based on the present value of the future lease payments over the lease term at commencement date. When applicable, the ROU asset includes any lease payments made at or before the commencement date and initial direct costs incurred and is reduced by lease incentives received under the lease agreement. Certain of the Company's real estate leases contain escalating future lease payments. Escalating lease payments that are based upon explicit amounts contained in the lease or an index (e.g., consumer price index) are included in the Company's determination of future lease payments to determine the ROU asset and lease liability recognized at the commencement date. Any differences in the future lease payments from initial recognition are not anticipated to be material and will be recorded as variable lease cost in the period incurred. The variable lease cost will also include the Company’s portion of property tax, utilities and common area maintenance. A significant portion of the Company’s real estate lease agreements include renewal periods at the Company’s option. The Company includes these renewal periods in the lease term only when renewal is reasonably certain based upon facts and circumstances specific to the lease and known by the Company. Certain of the equipment and rail car leases transfer ownership upon the conclusion of the lease term and as such, are classified as finance leases. Leases containing purchase options are classified as finance leases only when it is reasonably certain that the Company will execute such options. The Company uses its incremental borrowing rate on collateralized debt based on the information available at the lease commencement date in determining the present value of future lease payments as the implicit rate is typically not readily determinable. For operating leases, lease cost is recognized on a straight-line basis over the lease term and is included in cost of revenues or selling, general and administrative expenses depending on the use of the asset. For finance leases, ROU assets are amortized on a straight-line basis over the shorter of the lease term or the estimated useful life of the leased asset and interest expense is recognized based on the incremental borrowing rate. Amortization and interest expense for finance leases are included in depreciation and amortization and interest expense, net of interest income, respectively. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Marketable Securities | As of December 31, 2021 and 2020, the Company had total marketable securities as follows (in thousands): December 31, 2021 December 31, 2020 U.S. Treasury securities $ 901 $ 28,901 Municipal bonds 1,978 — Corporate notes and bonds 57,685 22,956 Commercial paper 21,160 — Total marketable securities $ 81,724 $ 51,857 |
Schedule of Activity in Allowance for Doubtful Accounts | The following table reflects the activity in the allowance for doubtful accounts and revenue allowance (in thousands): Allowance for Doubtful Accounts Revenue Allowance 2021 2020 2019 2021 2020 2019 Balance at January 1, $ 24,634 $ 22,493 $ 26,368 $ 20,115 $ 16,218 $ 17,947 Additions charged to earnings 8,018 10,133 2,408 34,319 45,784 35,549 Deductions from reserves, net of recoveries (8,516) (7,992) (6,283) (38,430) (41,887) (37,278) Balance at December 31, $ 24,136 $ 24,634 $ 22,493 $ 16,004 $ 20,115 $ 16,218 |
Schedule of Activity in Revenue Allowance | The following table reflects the activity in the allowance for doubtful accounts and revenue allowance (in thousands): Allowance for Doubtful Accounts Revenue Allowance 2021 2020 2019 2021 2020 2019 Balance at January 1, $ 24,634 $ 22,493 $ 26,368 $ 20,115 $ 16,218 $ 17,947 Additions charged to earnings 8,018 10,133 2,408 34,319 45,784 35,549 Deductions from reserves, net of recoveries (8,516) (7,992) (6,283) (38,430) (41,887) (37,278) Balance at December 31, $ 24,136 $ 24,634 $ 22,493 $ 16,004 $ 20,115 $ 16,218 |
Schedule of Asset Classification and Estimated Useful Life | The Company depreciates and amortizes the capitalized cost of these assets, using the straight-line method as follows: Asset Classification Estimated Useful Life Buildings and building improvements Buildings 20-42 years Leasehold and building improvements 2-45 years Camp and lodging equipment 8-15 years Vehicles 2-15 years Equipment Capitalized software and computer equipment 3-5 years Containers and railcars 8-16 years All other equipment 4-30 years Furniture and fixtures 5-8 years Property, plant and equipment consisted of the following (in thousands): December 31, 2021 December 31, 2020 Land $ 165,010 $ 139,776 Asset retirement costs (non-landfill) 19,105 16,407 Landfill assets 205,873 191,687 Buildings and improvements (1) 551,795 509,804 Camp equipment 127,680 159,021 Vehicles (2) 912,836 844,026 Equipment (3) 2,092,395 1,807,235 Furniture and fixtures 6,444 7,082 Construction in progress 60,447 24,378 4,141,585 3,699,416 Less - accumulated depreciation and amortization 2,278,410 2,174,118 Total property, plant and equipment, net $ 1,863,175 $ 1,525,298 ___________________________________ (1) Balances inclusive of gross ROU assets classified as finance leases of $8.9 million in both periods. (2) Balances inclusive of gross ROU assets classified as finance leases of $77.7 million and $47.2 million, respectively. (3) Balances inclusive of gross ROU assets classified as finance leases of $9.3 million both periods. |
Schedule of Active Landfill Sites | As of December 31, 2021, the Company had 9 active landfill sites (including the Company's two non-commercial landfills), which have estimated remaining lives (based on anticipated waste volumes and remaining highly probable airspace) as follows: Facility Name Location Remaining Permitted Remaining Highly Probable Airspace Buttonwillow California 21 5,500 Deer Park Texas 1 32 Deer Trail Colorado 26 1,572 Grassy Mountain Utah 40 4,608 Kimball Nebraska 5 120 Lambton Ontario, Canada 48 4,534 Lone Mountain Oklahoma 16 3,617 Ryley Alberta, Canada 3 455 Sawyer North Dakota 84 3,346 23,784 |
Schedule of Remaining Highly Probable Airspace | The following table presents the remaining highly probable airspace from January 1, 2019 through December 31, 2021 (in thousands of cubic yards): 2021 2020 2019 Remaining capacity, beginning of year 24,716 28,494 29,760 Changes in highly probable airspace, net — (2,962) — Consumed (932) (816) (1,266) Remaining capacity, end of year 23,784 24,716 28,494 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables present the Company's third-party revenue disaggregated by source of revenue and geography (in thousands): For the year ended December 31, 2021 Environmental Services Safety-Kleen Sustainability Solutions Corporate Total Primary Geographical Markets United States $ 2,631,112 $ 693,542 $ 299 $ 3,324,953 Canada 394,795 85,818 — 480,613 Total third-party revenues $ 3,025,907 $ 779,360 $ 299 $ 3,805,566 Sources of Revenue Technical Services $ 1,209,624 $ — $ — $ 1,209,624 Field and Emergency Response Services (1) 466,380 — — 466,380 Industrial Services and Other (2) 705,999 — 299 706,298 Safety-Kleen Environmental Services 643,904 161,587 — 805,491 Safety-Kleen Oil — 617,773 — 617,773 Total third-party revenues $ 3,025,907 $ 779,360 $ 299 $ 3,805,566 _____________ (1) Includes $28.4 million of third-party revenues generated from the operations of the HydroChemPSC business (2) Includes $137.7 million of third-party revenues generated from the operations of the HydroChemPSC business For the year ended December 31, 2020 Environmental Services Safety-Kleen Sustainability Solutions Corporate Total Primary Geographical Markets United States $ 2,287,796 $ 452,435 $ (674) $ 2,739,557 Canada 349,845 53,731 964 404,540 Total third-party revenues $ 2,637,641 $ 506,166 $ 290 $ 3,144,097 Sources of Revenue Technical Services $ 1,062,714 $ — $ — $ 1,062,714 Field and Emergency Response Services 461,036 — — 461,036 Industrial Services and Other 480,331 — 290 480,621 Safety-Kleen Environmental Services 633,560 175,676 — 809,236 Safety-Kleen Oil — 330,490 — 330,490 Total third-party revenues $ 2,637,641 $ 506,166 $ 290 $ 3,144,097 For the year ended December 31, 2019 Environmental Services Safety-Kleen Sustainability Solutions Corporate Total Primary Geographical Markets United States $ 2,390,718 $ 550,700 $ (586) $ 2,940,832 Canada 411,964 57,672 1,722 471,358 Total third-party revenues $ 2,802,682 $ 608,372 $ 1,136 $ 3,412,190 Sources of Revenue Technical Services $ 1,120,043 $ — $ — $ 1,120,043 Field and Emergency Response Services 340,906 — — 340,906 Industrial Services and Other 631,414 — 1,136 632,550 Safety-Kleen Environmental Services 710,319 141,201 — 851,520 Safety-Kleen Oil — 467,171 — 467,171 Total third-party revenues $ 2,802,682 $ 608,372 $ 1,136 $ 3,412,190 |
Schedule of Contract Balances | Contract Balances (in thousands) December 31, 2021 December 31, 2020 Receivables $ 792,734 $ 611,534 Contract assets (unbilled receivables) 94,963 55,681 Contract liabilities (deferred revenue) 83,749 74,066 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Allocation of Purchase Price | The following table summarizes the preliminary determination and recognition of assets acquired and liabilities assumed (in thousands): At October 8, 2021 Accounts receivable, including unbilled receivables 131,924 Inventories and supplies 3,162 Prepaid expenses and other current assets 16,016 Property, plant and equipment 313,540 Other intangibles 289,000 Operating lease right-of-use assets 34,347 Other non-current assets 1,045 Current liabilities (115,704) Current portion of operating lease liabilities (11,659) Operating lease liabilities, less current portion (26,128) Deferred tax liabilities (85,908) Other long-term liabilities (2,685) Total identifiable net assets 546,950 Goodwill (i) 683,463 Total purchase price $ 1,230,413 _____________ |
Business Acquisition, Pro Forma Information | The following table presents unaudited pro forma combined summary financial information for the years ended December 31, 2021 and December 31, 2020, respectively, and assumes the acquisition of HydroChemPSC occurred on January 1, 2020 (in thousands): 2021 2020 Pro forma combined revenues $ 4,380,724 $ 3,859,430 Pro forma combined net income 229,807 149,219 |
INVENTORIES AND SUPPLIES (Table
INVENTORIES AND SUPPLIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories and supplies consisted of the following (in thousands): December 31, 2021 December 31, 2020 Oil and oil related products $ 101,965 $ 76,209 Supplies 126,602 120,007 Solvent and solutions 8,099 8,812 Other 14,026 15,470 Total inventories and supplies $ 250,692 $ 220,498 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The Company depreciates and amortizes the capitalized cost of these assets, using the straight-line method as follows: Asset Classification Estimated Useful Life Buildings and building improvements Buildings 20-42 years Leasehold and building improvements 2-45 years Camp and lodging equipment 8-15 years Vehicles 2-15 years Equipment Capitalized software and computer equipment 3-5 years Containers and railcars 8-16 years All other equipment 4-30 years Furniture and fixtures 5-8 years Property, plant and equipment consisted of the following (in thousands): December 31, 2021 December 31, 2020 Land $ 165,010 $ 139,776 Asset retirement costs (non-landfill) 19,105 16,407 Landfill assets 205,873 191,687 Buildings and improvements (1) 551,795 509,804 Camp equipment 127,680 159,021 Vehicles (2) 912,836 844,026 Equipment (3) 2,092,395 1,807,235 Furniture and fixtures 6,444 7,082 Construction in progress 60,447 24,378 4,141,585 3,699,416 Less - accumulated depreciation and amortization 2,278,410 2,174,118 Total property, plant and equipment, net $ 1,863,175 $ 1,525,298 ___________________________________ (1) Balances inclusive of gross ROU assets classified as finance leases of $8.9 million in both periods. (2) Balances inclusive of gross ROU assets classified as finance leases of $77.7 million and $47.2 million, respectively. (3) Balances inclusive of gross ROU assets classified as finance leases of $9.3 million both periods. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to Goodwill | The changes in goodwill for the years ended December 31, 2021 and 2020 were as follows (in thousands): Environmental Services Safety-Kleen Sustainability Solutions Totals Balance at January 1, 2020 $ 401,680 $ 123,333 $ 525,013 Increase from current period acquisition — 1,439 1,439 Measurement period adjustments from prior period acquisitions 23 — 23 Decrease from disposition of business (674) — (674) Foreign currency translation 889 333 1,222 Balance at December 31, 2020 $ 401,918 $ 125,105 $ 527,023 Increase from current period acquisitions 683,463 16,349 699,812 Foreign currency translation 153 54 207 Balance at December 31, 2021 $ 1,085,534 $ 141,508 $ 1,227,042 |
Schedule of Finite-Lived Intangible Assets by Major Class | As of December 31, 2021 and 2020, the Company's finite-lived and indefinite-lived intangible assets consisted of the following (in thousands): December 31, 2021 December 31, 2020 Cost Accumulated Net Cost Accumulated Net Permits $ 187,519 $ 102,408 $ 85,111 $ 183,766 $ 95,033 $ 88,733 Customer and supplier relationships 576,474 214,776 361,698 382,083 211,895 170,188 Other intangible assets 94,271 19,359 74,912 39,287 34,744 4,543 Total amortizable permits and other intangible assets 858,264 336,543 521,721 605,136 341,672 263,464 Trademarks and trade names 123,191 — 123,191 123,156 — 123,156 Total permits and other intangible assets $ 981,455 $ 336,543 $ 644,912 $ 728,292 $ 341,672 $ 386,620 |
Schedule of Indefinite-Lived Intangible Assets | As of December 31, 2021 and 2020, the Company's finite-lived and indefinite-lived intangible assets consisted of the following (in thousands): December 31, 2021 December 31, 2020 Cost Accumulated Net Cost Accumulated Net Permits $ 187,519 $ 102,408 $ 85,111 $ 183,766 $ 95,033 $ 88,733 Customer and supplier relationships 576,474 214,776 361,698 382,083 211,895 170,188 Other intangible assets 94,271 19,359 74,912 39,287 34,744 4,543 Total amortizable permits and other intangible assets 858,264 336,543 521,721 605,136 341,672 263,464 Trademarks and trade names 123,191 — 123,191 123,156 — 123,156 Total permits and other intangible assets $ 981,455 $ 336,543 $ 644,912 $ 728,292 $ 341,672 $ 386,620 |
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 December 31, 2021 is as follows (in thousands): Years ending December 31, Expected 2022 $ 48,845 2023 44,595 2024 40,342 2025 38,485 2026 36,684 Thereafter 312,770 $ 521,721 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): December 31, 2021 December 31, 2020 Accrued insurance $ 102,853 $ 77,514 Accrued interest 19,785 19,697 Accrued compensation and benefits 133,604 81,437 Accrued income, real estate, sales and other taxes 29,954 25,843 Interest rate swap liability 17,383 33,630 Accrued other 87,835 57,702 $ 391,414 $ 295,823 |
CLOSURE AND POST-CLOSURE LIAB_2
CLOSURE AND POST-CLOSURE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 December 31, 2021 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 2,101 — 2,101 Accretion 3,254 3,399 6,653 Changes in estimates recorded to consolidated statement of operations 6,465 103 6,568 Changes in estimates recorded to consolidated balance sheet 481 201 682 Expenditures (3,445) (753) (4,198) Currency translation and other 155 49 204 Balance at December 31, 2020 48,412 39,514 87,926 Liabilities assumed in acquisitions — 1,446 1,446 New asset retirement obligations 2,443 — 2,443 Accretion 3,655 3,702 7,357 Changes in estimates recorded to consolidated statement of operations 2,287 396 2,683 Changes in estimates recorded to consolidated balance sheet 2,297 1,415 3,712 Expenditures (5,818) (784) (6,602) Currency translation and other 149 (11) 138 Balance at December 31, 2021 $ 53,425 $ 45,678 $ 99,103 |
Schedule of Expected Payments Related to Asset Retirement Obligations | Anticipated payments (based on current estimated costs and anticipated timing of necessary regulatory approvals to commence work on closure and post-closure activities) for each of the next five years and thereafter are as follows (in thousands): Years ending December 31, 2022 $ 12,612 2023 11,452 2024 13,460 2025 10,791 2026 8,143 Thereafter 276,236 Undiscounted closure and post-closure liabilities 332,694 Less: Discount at credit-adjusted risk-free rate (158,941) Less: Undiscounted estimated closure and post-closure liabilities relating to airspace not yet consumed (74,650) Present value of closure and post-closure liabilities $ 99,103 |
REMEDIAL LIABILITIES (Tables)
REMEDIAL LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Changes to Remedial Liabilities | The changes to remedial liabilities from January 1, 2020 through December 31, 2021 were as follows (in thousands): Remedial Remedial Remedial Total Balance at January 1, 2020 $ 1,851 $ 61,991 $ 50,331 $ 114,173 Accretion 90 2,607 1,701 4,398 Changes in estimates recorded to consolidated statement of operations (15) 2,873 1,272 4,130 Expenditures (61) (4,332) (3,810) (8,203) Currency translation and other — (79) 394 315 Balance at December 31, 2020 1,865 63,060 49,888 114,813 Liabilities assumed in acquisitions — — 1,216 1,216 Accretion 90 2,614 1,684 4,388 Changes in estimates recorded to consolidated statement of operations (126) (178) 600 296 Expenditures (49) (4,889) (3,966) (8,904) Currency translation and other — (820) 884 64 Balance at December 31, 2021 $ 1,780 $ 59,787 $ 50,306 $ 111,873 |
Remedial Liabilities Anticipated Payments for Each of the Next Five Years | Anticipated payments at December 31, 2021 (based on current estimated costs and anticipated timing of necessary regulatory approvals to commence work on remedial activities) for each of the next five years and thereafter were as follows (in thousands): Years ending December 31, 2022 $ 14,416 2023 17,530 2024 12,098 2025 7,769 2026 6,002 Thereafter 73,185 Undiscounted remedial liabilities 131,000 Less: Discount at risk free rates (19,127) Total remedial liabilities $ 111,873 |
Schedule of Environmental Exit Costs by Cost | The following table presents the Company's estimated remedial liabilities and reasonably possible additional liabilities as of December 31, 2021 disaggregated by facility/site type (in thousands, except percentages): Type of Facility or Site Remedial % of Total Reasonably Possible Additional Liabilities (1) Facilities now used in active conduct of the Company's business (44 facilities) $ 42,875 38.3 % $ 8,520 Inactive facilities not now used in active conduct of the Company's business but most of which were acquired because the assumption of remedial liabilities for such facilities was part of the purchase price for the CSD assets (24 facilities) 59,801 53.5 11,237 Superfund sites (16 sites) 9,197 8.2 1,380 Total $ 111,873 100.0 % $ 21,137 ___________________________________ (1) Amounts represent the high end of the range of management's best estimate of the reasonably possible additional liabilities. The following table presents the Company's estimated remedial liabilities and reasonably possible additional liabilities as of December 31, 2021 disaggregated by facilities/sites which represent at least 5% of the total and with all other facilities/ sites combined (in thousands, except percentages): Location Type of Facility or Site Remedial Liabilities (1) % of Total Reasonably Possible Additional Liabilities (2) Baton Rouge, LA Closed incinerator and landfill $ 25,761 23.0 % $ 4,306 Bridgeport, NJ Closed incinerator 17,792 15.9 3,605 Mercier, Quebec Idled incinerator and legal proceedings 11,460 10.3 1,729 Linden, NJ Operating solvent recycling center 6,974 6.2 1,460 Various All other incinerators, landfills, wastewater treatment facilities and service centers (64 facilities) 40,689 36.4 8,657 Various Superfund sites (each representing less than 5% of total liabilities) (16 sites) 9,197 8.2 1,380 Total $ 111,873 100.0 % $ 21,137 _________________________________ (1) $24.1 million of the $111.9 million remedial liabilities include estimates related to the legal and administrative proceedings discussed in Note 17, "Commitments and Contingencies," as well as other such estimated remedial liabilities. (2) Amounts represent the high end of the range of management's best estimate of the reasonably possible additional liabilities. |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The following table is a summary of the Company's long-term debt (in thousands): Current Portion of Long-Term Debt: December 31, 2021 December 31, 2020 Secured senior term loans $ 17,535 $ 7,535 Long-Term Debt: Secured senior term loans due June 30, 2024 ("2024 Term Loans") $ 712,091 $ 719,626 Secured senior term loans due October 8, 2028 ("2028 Term Loans") 990,000 — 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 debt, at par 2,547,091 1,564,626 Unamortized debt issuance costs and discount, net (30,067) (14,985) Long-term debt, at carrying value $ 2,517,024 $ 1,549,641 |
Schedule of Redemption Prices | After the dates in the preceding paragraph, the Company may redeem all or any portion of the Notes which remain outstanding at any time upon proper notice at the following redemption prices if redeemed during the twelve-month period commencing on July 15 of the years set forth below plus accrued and unpaid interest, if any, up to the date of redemption: 2027 Notes Year Percentage 2022 102.438 % 2023 101.219 % 2024 and thereafter 100.000 % 2029 Notes Year Percentage 2024 102.563 % 2025 101.281 % 2026 and thereafter 100.000 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of income before provision for income taxes were as follows (in thousands): For the years ended December 31, 2021 2020 2019 Domestic $ 223,438 $ 168,117 $ 156,571 Foreign 46,277 6,433 (8,332) Total $ 269,715 $ 174,550 $ 148,239 |
Schedule of Components of Provision for Income Taxes | The provision for income taxes consisted of the following (in thousands, except percentages): For the years ended December 31, 2021 2020 2019 Current: Federal $ 42,480 $ 33,327 $ 20,482 State 18,126 14,575 14,564 Foreign 4,380 1,559 7,448 64,986 49,461 42,494 Deferred Federal 2,275 (965) 7,933 State (4,777) (2,506) 550 Foreign 3,984 (6,277) (478) 1,482 (9,748) 8,005 Provision for income taxes $ 66,468 $ 39,713 $ 50,499 Effective tax rate 24.6% 22.8% 34.1% |
Schedule of Effective Income Tax Rate Reconciliation | The Company's effective income tax rate varied from the amount computed using the statutory federal income tax rate of 21% as follows (in thousands): For the years ended December 31, 2021 2020 2019 Tax expense at US statutory rate $ 56,640 $ 36,655 $ 31,130 State income taxes, net of federal benefit 12,101 9,837 10,597 Foreign rate differential 1,922 1,256 276 Valuation allowance (9,139) (11,339) 4,459 Uncertain tax position interest and penalties 263 (712) 474 Tax credits expired (used) 2,530 2,039 (50) Non-deductible compensation 2,326 1,406 1,922 Other (175) 571 1,691 Provision for income taxes $ 66,468 $ 39,713 $ 50,499 |
Schedule of Deferred Tax Assets and Liabilities | The components of the total net deferred tax assets and liabilities as of December 31, 2021 and 2020 were as follows (in thousands): 2021 2020 Deferred tax assets: Provision for doubtful accounts $ 10,188 $ 10,305 Closure, post-closure and remedial liabilities 28,206 28,665 Operating lease liabilities 42,218 38,151 Accrued expenses 20,455 16,797 Accrued compensation and benefits 24,504 11,372 Net operating loss carryforwards (1) 68,381 50,433 Tax credit carryforwards (2) 12,368 14,471 Interest rate swap liability 5,215 10,089 Stock-based compensation 2,705 3,040 Other 5,635 5,553 Total deferred tax assets 219,875 188,876 Deferred tax liabilities: Property, plant and equipment (273,883) (194,604) Operating lease right-of-use assets (41,260) (38,018) Permits and other intangible assets (138,241) (95,492) Prepaid expenses (10,212) (9,660) Total deferred tax liabilities (463,596) (337,774) Total net deferred tax liability before valuation allowance (243,721) (148,898) Less valuation allowance (69,806) (77,044) Net deferred tax liabilities $ (313,527) $ (225,942) ___________________________________ (1) As of December 31, 2021, the net operating loss carryforwards included (i) state net operating loss carryforwards of $280.6 million which will begin to expire in 2022, (ii) federal net operating loss carryforwards of $124.1 million which will begin to expire in 2024 and (iii) foreign net operating loss carryforwards of $116.0 million which will begin to expire in 2022. The increases in the state net operating loss carryforwards and federal net operating loss carryforwards are due to balances acquired in the HydroChemPSC acquisition. (2) As of December 31, 2021, the foreign tax credit carryforwards of $11.0 million will expire between 2022 and 2024. |
Summary of Valuation Allowance | The components of the total valuation allowance as of December 31, 2021 and 2020 were as follows (in thousands): 2021 2020 Allowance related to: Foreign tax credits 11,047 14,127 Federal net operating losses 3,788 779 State net operating loss carryforwards 12,053 10,429 Foreign net operating loss carryforwards 26,697 29,839 Deferred tax assets of a Canadian subsidiary 10,701 11,468 Realized and unrealized capital losses 5,520 10,402 Total valuation allowance $ 69,806 $ 77,044 |
Schedule of Income Tax Contingencies | The changes to unrecognized tax benefits (excluding related penalties and interest) from January 1, 2019 through December 31, 2021, were as follows (in thousands): 2021 2020 2019 Unrecognized tax benefits, beginning of year $ 5,490 $ 6,414 $ 3,159 (Reductions) additions to prior year tax positions — (833) 3,354 Expirations — (203) (209) Foreign currency translation 6 112 110 Unrecognized tax benefits, end of year $ 5,496 $ 5,490 $ 6,414 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share Computations | The following are computations of basic and diluted earnings per share (in thousands, except for per share amounts): For the years ended December 31, 2021 2020 2019 Numerator for basic and diluted earnings per share: Net income $ 203,247 $ 134,837 $ 97,740 Denominator: Weighted basic shares outstanding 54,514 55,479 55,845 Dilutive effect of equity-based compensation awards 247 211 284 Weighted dilutive shares outstanding 54,761 55,690 56,129 Basic earnings per share $ 3.73 $ 2.43 $ 1.75 Diluted earnings per share $ 3.71 $ 2.42 $ 1.74 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Reclassification of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive loss by component and related tax impacts for the years ended December 31, 2021, 2020 and 2019 were as follows (in thousands): Foreign Currency Translation Adjustments Unrealized (loss) gain on Available-for-Sale Securities Unrealized loss on Interest Rate Hedge Unrealized (loss) gain on unfunded pension liability Total Balance at January 1, 2019 $ (212,925) $ (69) $ (8,773) $ (1,604) $ (223,371) Other comprehensive income (loss) before reclassifications 25,130 (70) (14,401) 60 10,719 Amounts reclassified out of accumulated other comprehensive loss — 332 2,335 — 2,667 Tax expense — (50) — (16) (66) Other comprehensive income (loss) 25,130 212 (12,066) 44 13,320 Balance at December 31, 2019 (187,795) 143 (20,839) (1,560) (210,051) Other comprehensive income (loss) before reclassifications 10,212 (10) (20,970) (255) (11,023) Amounts reclassified out of accumulated other comprehensive loss — — 8,180 — 8,180 Tax benefit 1,349 2 — 66 1,417 Other comprehensive income (loss) 11,561 (8) (12,790) (189) (1,426) Balance at December 31, 2020 (176,234) 135 (33,629) (1,749) (211,477) Other comprehensive (loss) income before reclassifications (1,590) (361) 6,235 1,411 5,695 Amounts reclassified out of accumulated other comprehensive loss — — 10,011 — 10,011 Tax benefit (expense) — 76 — (317) (241) Other comprehensive (loss) income (1,590) (285) 16,246 1,094 15,465 Balance at December 31, 2021 $ (177,824) $ (150) $ (17,383) $ (655) $ (196,012) |
Reclassification out of Accumulated Other Comprehensive Income | The amounts reclassified out of accumulated other comprehensive loss into the consolidated statement of operations, with presentation location, during the years ended December 31, 2021, 2020 and 2019 were as follows (in thousands): For the years ended December 31, Other Comprehensive Income Components 2021 2020 2019 Location Unrealized loss on available-for-sale securities $ — $ — $ (332) Other (expense) income, net Unrealized loss on interest rate hedge (10,011) (8,180) (2,335) Interest expense, net of interest income |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock | The following table summarizes information about restricted stock awards for the year ended December 31, 2021: Restricted Stock Number of Weighted Average Balance at January 1, 2021 493,879 $ 59.74 Granted 205,984 96.69 Vested (194,178) 58.12 Forfeited (53,488) 63.01 Balance at December 31, 2021 452,197 $ 76.88 |
Schedule of Performance Stock Awards | The following table summarizes information about performance stock awards for the year ended December 31, 2021: Performance Stock Number of Weighted Average Balance at January 1, 2021 254,449 $ 61.75 Granted 135,373 92.94 Vested (158,634) 61.52 Forfeited (61,431) 65.28 Balance at December 31, 2021 169,757 $ 85.56 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Self-Insurance Liabilities Anticipated Payments | Anticipated payments for contingencies related to workers' compensation, comprehensive general liability and vehicle liability related claims at December 31, 2021 for each of the next five years and thereafter were as follows (in thousands): Years ending December 31, 2022 $ 29,956 2023 17,569 2024 12,113 2025 8,003 2026 6,250 Thereafter 9,930 Undiscounted self-insurance liabilities 83,821 Less: Discount (1,051) Total self-insurance liabilities (included in accrued expenses) $ 82,770 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Supplemental Lease Balance Sheet Information | The following table presents our finance lease balances and their classification on the consolidated balance sheets (in thousands): Finance Lease Balances (Classification) December 31, 2021 December 31, 2020 ROU assets (Property, plant and equipment, net) $ 81,267 $ 60,271 Current portion of lease liabilities (Accrued expenses) 10,893 5,840 Long-term portion of lease liabilities (Other long-term liabilities) 72,051 55,038 |
Schedule of Lease Expense and Other Information | The Company’s lease expense was as follows (in thousands): For the years ended December 31, 2021 2020 2019 Operating lease cost $ 50,264 $ 53,194 $ 55,402 Finance lease cost: Amortization of ROU assets 9,504 4,966 1,142 Interest on lease liabilities 2,544 1,523 1,415 Total finance lease cost 12,048 6,489 2,557 Short-term lease cost 102,913 70,692 84,749 Variable lease cost 3,546 3,691 6,702 Total lease cost $ 168,771 $ 134,066 $ 149,410 Other information related to leases was as follows: Weighted Average Remaining Lease Term (years) December 31, 2021 December 31, 2020 Operating leases 4.4 5.1 Finance leases 8.1 9.3 Weighted Average Discount Rate December 31, 2021 December 31, 2020 Operating leases 4.35 % 4.89 % Finance leases 3.65 % 3.57 % For the years ended December 31, Supplemental Cash Flow Related Disclosures (in thousands) 2021 2020 2019 Cash paid for amounts related to lease liabilities: Operating cash flows from operating leases $ 50,963 $ 53,498 $ 56,240 Operating cash flows from finance leases 2,544 1,523 1,415 Financing cash flows from finance leases 8,458 4,469 586 ROU assets obtained in exchange for operating lease liabilities (1) 55,556 34,358 17,699 ROU assets obtained in exchange for finance lease liabilities 30,476 32,526 33,449 _____________ (1) Includes $34.3 million of operating leases acquired with the HydroChemPSC business |
Schedule of Operating Lease Maturity | At December 31, 2021, the Company's future lease payments under non-cancelable leases that have lease terms in excess of one year were as follows (in thousands): Years ending December 31, December 31, 2021 Operating Leases Finance Leases 2022 $ 56,124 $ 14,442 2023 44,515 12,915 2024 32,302 12,253 2025 20,599 11,578 2026 13,735 11,591 Thereafter 17,233 34,077 Total future lease payments 184,508 96,856 Amount representing interest (18,903) (13,912) Total lease liabilities $ 165,605 $ 82,944 |
Schedule of Finance Lease Maturity | At December 31, 2021, the Company's future lease payments under non-cancelable leases that have lease terms in excess of one year were as follows (in thousands): Years ending December 31, December 31, 2021 Operating Leases Finance Leases 2022 $ 56,124 $ 14,442 2023 44,515 12,915 2024 32,302 12,253 2025 20,599 11,578 2026 13,735 11,591 Thereafter 17,233 34,077 Total future lease payments 184,508 96,856 Amount representing interest (18,903) (13,912) Total lease liabilities $ 165,605 $ 82,944 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Third Party Revenues to Direct Revenues | The following tables reconcile third-party revenues to direct revenues for the years ended December 31, 2021, 2020 and 2019 (in thousands): For the year ended December 31, 2021 Environmental Safety-Kleen Sustainability Solutions Corporate Totals Third-party revenues $ 3,025,907 $ 779,360 $ 299 $ 3,805,566 Intersegment revenues, net 6,547 (6,547) — — Direct revenues $ 3,032,454 $ 772,813 $ 299 $ 3,805,566 For the year ended December 31, 2020 Environmental Safety-Kleen Sustainability Solutions Corporate Totals Third-party revenues $ 2,637,641 $ 506,166 $ 290 $ 3,144,097 Intersegment revenues, net (1,740) 1,740 — — Direct revenues $ 2,635,901 $ 507,906 $ 290 $ 3,144,097 For the year ended December 31, 2019 Environmental Safety-Kleen Sustainability Solutions Corporate Totals Third-party revenues $ 2,802,682 $ 608,372 $ 1,136 $ 3,412,190 Intersegment revenues, net (6,688) 6,688 — — Direct revenues $ 2,795,994 $ 615,060 $ 1,136 $ 3,412,190 |
Reconciliation to Consolidated Statements of Income to Adjusted EBITDA | The following table presents Adjusted EBITDA information used by management by reported segment (in thousands): For the years ended December 31, 2021 2020 2019 Adjusted EBITDA: Environmental Services $ 659,718 $ 665,918 $ 600,413 Safety-Kleen Sustainability Solutions 227,354 83,214 128,249 Corporate Items (210,466) (175,328) (170,529) Total 676,606 573,804 558,133 Reconciliation to Consolidated Statements of Operations: Accretion of environmental liabilities 11,745 11,051 10,136 Stock-based compensation 18,839 18,502 17,816 Depreciation and amortization 298,135 292,915 300,725 Income from operations 347,887 251,336 229,456 Other expense (income), net 515 290 (2,897) Loss on early extinguishment of debt — — 6,131 Loss (gain) on sale of businesses — 3,376 (687) Interest expense, net of interest income 77,657 73,120 78,670 Income from operations before provision for income taxes $ 269,715 $ 174,550 $ 148,239 |
Schedule of Segment Reporting Information, by Segment | The following table presents assets by reported segment and in the aggregate (in thousands): December 31, 2021 December 31, 2020 Property, plant and equipment, net Environmental Services $ 1,374,913 $ 1,068,910 Safety-Kleen Sustainability Solutions 373,721 366,160 Corporate Items 114,541 90,228 Total property, plant and equipment, net $ 1,863,175 $ 1,525,298 Goodwill and Permits and other intangibles, net Environmental Services Goodwill $ 1,085,534 $ 401,918 Permits and other intangibles, net 498,739 228,237 Total Environmental Services 1,584,273 630,155 Safety-Kleen Sustainability Solutions Goodwill $ 141,508 $ 125,105 Permits and other intangibles, net 146,173 158,383 Total Safety-Kleen Sustainability Solutions 287,681 283,488 Total $ 1,871,954 $ 913,643 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | As of December 31, 2021 and 2020, the Company had property, plant and equipment, net of depreciation and amortization and permits and other intangible assets, net of amortization in the following geographic locations (in thousands): December 31, 2021 December 31, 2020 Total % of Total Total % of Total Property, plant and equipment, net United States $ 1,610,402 86.4 % $ 1,246,758 81.7 % Canada and other foreign 252,773 13.6 278,540 18.3 Total property, plant and equipment, net $ 1,863,175 100.0 % $ 1,525,298 100.0 % Permits and other intangibles, net United States $ 604,076 93.7 % $ 342,787 88.7 % Canada and other foreign 40,836 6.3 43,833 11.3 Total permits and other intangibles, net $ 644,912 100.0 % $ 386,620 100.0 % |
Long-lived Assets by Geographic Areas | The following table presents the total assets by geographical area (in thousands): December 31, 2021 December 31, 2020 United States $ 5,077,585 $ 3,447,811 Canada and other foreign 576,114 683,709 Total $ 5,653,699 $ 4,131,520 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents and Uncashed Checks (Details) | Dec. 31, 2021USD ($) |
Accounting Policies [Abstract] | |
Bank disbursement account balance | $ 0 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Total marketable securities | $ 81,724 | $ 51,857 |
U.S. Treasury securities | ||
Marketable Securities [Line Items] | ||
Total marketable securities | 901 | 28,901 |
Municipal bonds | ||
Marketable Securities [Line Items] | ||
Total marketable securities | 1,978 | 0 |
Corporate notes and bonds | ||
Marketable Securities [Line Items] | ||
Total marketable securities | 57,685 | 22,956 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Total marketable securities | $ 21,160 | $ 0 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Allowances for Doubtful Accounts And Revenue Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at January 1, | $ 24,634 | $ 22,493 | $ 26,368 |
Additions charged to earnings | 8,018 | 10,133 | 2,408 |
Deductions from reserves, net of recoveries | (8,516) | (7,992) | (6,283) |
Balance at December 31, | 24,136 | 24,634 | 22,493 |
Revenue Allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at January 1, | 20,115 | 16,218 | 17,947 |
Additions charged to earnings | 34,319 | 45,784 | 35,549 |
Deductions from reserves, net of recoveries | (38,430) | (41,887) | (37,278) |
Balance at December 31, | $ 16,004 | $ 20,115 | $ 16,218 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment, net (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 20 years |
Minimum | Leasehold and building improvements | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 2 years |
Minimum | Camp and lodging equipment | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 8 years |
Minimum | Vehicles | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 2 years |
Minimum | Capitalized software and computer equipment | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 3 years |
Minimum | Containers and railcars | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 8 years |
Minimum | All other equipment | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 4 years |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 5 years |
Maximum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 42 years |
Maximum | Leasehold and building improvements | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 45 years |
Maximum | Camp and lodging equipment | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 15 years |
Maximum | Vehicles | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 15 years |
Maximum | Capitalized software and computer equipment | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 5 years |
Maximum | Containers and railcars | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 16 years |
Maximum | All other equipment | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 30 years |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Weighted average remaining useful life (in years) | 8 years |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) | 12 Months Ended |
Dec. 31, 2021reportingUnit | |
Accounting Policies [Abstract] | |
Number of reporting units | 3 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Permits and Other Intangibles (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | Permits | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 5 years |
Minimum | Other intangible assets | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 2 years |
Maximum | Permits | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 30 years |
Maximum | Other intangible assets | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life (in years) | 25 years |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - Landfill Accounting (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)cubic_yardcubicYardlandfill_site | Dec. 31, 2020USD ($)cubicYardcubic_yardlandfill_site | Dec. 31, 2019USD ($)cubicYardcubic_yard | |
Property, Plant and Equipment [Line Items] | |||
Landfill sites | landfill_site | 9 | ||
Permitted, but not highly probable airspace (cubic yards) | 0 | 0 | |
Remaining Airspace Capacity [Roll Forward] | |||
Remaining capacity, beginning of period (cubic yards) | 24,716,000 | 28,494,000 | 29,760,000 |
Changes in highly probable airspace, net (cubic yards) | 0 | (2,962,000) | 0 |
Consumed (cubic yards) | (932,000) | (816,000) | (1,266,000) |
Remaining capacity, end of period (cubic yards) | 23,784,000 | 24,716,000 | 28,494,000 |
Number of landfill sites closed during period | landfill_site | 2 | ||
Landfill final closure and post-closure liabilities | $ | $ 53.4 | $ 48.4 | |
Regulatory post-closure period for landfill (in years) | 30 years | ||
Asset retirement obligations, inflation rate (as a percent) | 1.02% | 1.02% | |
Asset retirement obligations, risk free rate (as a percent) | 4.84% | 5.60% | |
Non-landfill closure and post-closure liabilities | $ | $ 45.7 | $ 39.5 | |
Minimum | |||
Remaining Airspace Capacity [Roll Forward] | |||
Non-landfill closure and post-closure liabilities, period (in years) | 10 years | ||
Maximum | |||
Remaining Airspace Capacity [Roll Forward] | |||
Non-landfill closure and post-closure liabilities, period (in years) | 30 years | ||
Buttonwillow | California | |||
Property, Plant and Equipment [Line Items] | |||
Remaining Lives (Years) | 21 years | ||
Deer Park | Texas | |||
Property, Plant and Equipment [Line Items] | |||
Remaining Lives (Years) | 1 year | ||
Deer Trail | Colorado | |||
Property, Plant and Equipment [Line Items] | |||
Remaining Lives (Years) | 26 years | ||
Grassy Mountain | Utah | |||
Property, Plant and Equipment [Line Items] | |||
Remaining Lives (Years) | 40 years | ||
Kimball | Nebraska | |||
Property, Plant and Equipment [Line Items] | |||
Remaining Lives (Years) | 5 years | ||
Lambton | Ontario, Canada | |||
Property, Plant and Equipment [Line Items] | |||
Remaining Lives (Years) | 48 years | ||
Lone Mountain | Oklahoma | |||
Property, Plant and Equipment [Line Items] | |||
Remaining Lives (Years) | 16 years | ||
Ryley | Alberta, Canada | |||
Property, Plant and Equipment [Line Items] | |||
Remaining Lives (Years) | 3 years | ||
Sawyer | North Dakota | |||
Property, Plant and Equipment [Line Items] | |||
Remaining Lives (Years) | 84 years | ||
Altair | |||
Remaining Airspace Capacity [Roll Forward] | |||
Airspace consumed (in cubic yards) | cubicYard | 25,000 | 132,000 | |
Westmorland | |||
Remaining Airspace Capacity [Roll Forward] | |||
Airspace consumed (in cubic yards) | cubicYard | 0 | 0 | 0 |
Landfill assets | |||
Property, Plant and Equipment [Line Items] | |||
Amortization | $ | $ 13.7 | $ 10.9 | $ 12.3 |
Non-commercial landfills | |||
Property, Plant and Equipment [Line Items] | |||
Landfill sites | landfill_site | 2 | ||
Permitted | |||
Property, Plant and Equipment [Line Items] | |||
Remaining highly probable airspace | 23,784,000 | ||
Permitted | Buttonwillow | California | |||
Property, Plant and Equipment [Line Items] | |||
Remaining highly probable airspace | 5,500,000 | ||
Permitted | Deer Park | Texas | |||
Property, Plant and Equipment [Line Items] | |||
Remaining highly probable airspace | 32,000 | ||
Permitted | Deer Trail | Colorado | |||
Property, Plant and Equipment [Line Items] | |||
Remaining highly probable airspace | 1,572,000 | ||
Permitted | Grassy Mountain | Utah | |||
Property, Plant and Equipment [Line Items] | |||
Remaining highly probable airspace | 4,608,000 | ||
Permitted | Kimball | Nebraska | |||
Property, Plant and Equipment [Line Items] | |||
Remaining highly probable airspace | 120,000 | ||
Permitted | Lambton | Ontario, Canada | |||
Property, Plant and Equipment [Line Items] | |||
Remaining highly probable airspace | 4,534,000 | ||
Permitted | Lone Mountain | Oklahoma | |||
Property, Plant and Equipment [Line Items] | |||
Remaining highly probable airspace | 3,617,000 | ||
Permitted | Ryley | Alberta, Canada | |||
Property, Plant and Equipment [Line Items] | |||
Remaining highly probable airspace | 455,000 | ||
Permitted | Sawyer | North Dakota | |||
Property, Plant and Equipment [Line Items] | |||
Remaining highly probable airspace | 3,346,000 |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES - Remedial Liabilities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)site | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Regulatory Liabilities [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ | $ 111,873 | $ 114,813 | $ 114,173 |
Minimum | |||
Regulatory Liabilities [Line Items] | |||
Remedial liabilities at acquisition, risk-free interest rate (as a percent) | 1.37% | ||
Maximum | |||
Regulatory Liabilities [Line Items] | |||
Remedial liabilities at acquisition, risk-free interest rate (as a percent) | 4.90% | ||
Superfund Proceedings | |||
Regulatory Liabilities [Line Items] | |||
Superfund sites | site | 131 |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) | Dec. 31, 2021source |
Environmental Services | |
Disaggregation of Revenue [Line Items] | |
Number of revenue sources | 4 |
Safety-Kleen Sustainability Solutions | |
Disaggregation of Revenue [Line Items] | |
Number of revenue sources | 2 |
SIGNIFICANT ACCOUNTING POLIC_13
SIGNIFICANT ACCOUNTING POLICIES - Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 20.5 | $ 18.6 | $ 14.6 |
SIGNIFICANT ACCOUNTING POLIC_14
SIGNIFICANT ACCOUNTING POLICIES - Advertising Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 6 | $ 9 | $ 9.8 |
SIGNIFICANT ACCOUNTING POLIC_15
SIGNIFICANT ACCOUNTING POLICIES - Government Grants (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cost of Sales | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Government programs benefits | $ 9.2 | $ 29.1 |
Selling, General and Administrative Expenses | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Government programs benefits | $ 2.9 | $ 13.2 |
SIGNIFICANT ACCOUNTING POLIC_16
SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) | Dec. 31, 2021 |
Real Estate | Minimum | |
Property, Plant and Equipment [Line Items] | |
Lessee term | 3 years |
Real Estate | Maximum | |
Property, Plant and Equipment [Line Items] | |
Lessee term | 10 years |
Non-Real Estate | Minimum | |
Property, Plant and Equipment [Line Items] | |
Lessee term | 2 years |
Non-Real Estate | Maximum | |
Property, Plant and Equipment [Line Items] | |
Lessee term | 8 years |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 3,805,566 | $ 3,144,097 | $ 3,412,190 |
Technical Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,209,624 | 1,062,714 | 1,120,043 |
Field and Emergency Response | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 466,380 | 461,036 | 340,906 |
Field and Emergency Response | HydroChemPSC | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 28,400 | ||
Industrial Services And Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 706,298 | 480,621 | 632,550 |
Industrial Services And Other | HydroChemPSC | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 137,700 | ||
Safety-Kleen Environmental Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 805,491 | 809,236 | 851,520 |
Safety-Kleen Oil | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 617,773 | 330,490 | 467,171 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,324,953 | 2,739,557 | 2,940,832 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 480,613 | 404,540 | 471,358 |
Environmental Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,032,454 | 2,635,901 | 2,795,994 |
Safety-Kleen Sustainability Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 772,813 | 507,906 | 615,060 |
Operating segments | Environmental Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,025,907 | 2,637,641 | 2,802,682 |
Operating segments | Environmental Services | Technical Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,209,624 | 1,062,714 | 1,120,043 |
Operating segments | Environmental Services | Field and Emergency Response | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 466,380 | 461,036 | 340,906 |
Operating segments | Environmental Services | Industrial Services And Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 705,999 | 480,331 | 631,414 |
Operating segments | Environmental Services | Safety-Kleen Environmental Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 643,904 | 633,560 | 710,319 |
Operating segments | Environmental Services | Safety-Kleen Oil | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Operating segments | Environmental Services | United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,631,112 | 2,287,796 | 2,390,718 |
Operating segments | Environmental Services | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 394,795 | 349,845 | 411,964 |
Operating segments | Safety-Kleen Sustainability Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 779,360 | 506,166 | 608,372 |
Operating segments | Safety-Kleen Sustainability Solutions | Technical Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Operating segments | Safety-Kleen Sustainability Solutions | Field and Emergency Response | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Operating segments | Safety-Kleen Sustainability Solutions | Industrial Services And Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Operating segments | Safety-Kleen Sustainability Solutions | Safety-Kleen Environmental Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 161,587 | 175,676 | 141,201 |
Operating segments | Safety-Kleen Sustainability Solutions | Safety-Kleen Oil | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 617,773 | 330,490 | 467,171 |
Operating segments | Safety-Kleen Sustainability Solutions | United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 693,542 | 452,435 | 550,700 |
Operating segments | Safety-Kleen Sustainability Solutions | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 85,818 | 53,731 | 57,672 |
Corporate, non-segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 299 | 290 | 1,136 |
Corporate, non-segment | Technical Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Corporate, non-segment | Field and Emergency Response | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Corporate, non-segment | Industrial Services And Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 299 | 290 | 1,136 |
Corporate, non-segment | Safety-Kleen Environmental Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Corporate, non-segment | Safety-Kleen Oil | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Corporate, non-segment | United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 299 | (674) | (586) |
Corporate, non-segment | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 0 | $ 964 | $ 1,722 |
REVENUES - Contract Balances (D
REVENUES - Contract Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 792,734 | $ 611,534 |
Contract assets (unbilled receivables) | 94,963 | 55,681 |
Contract liabilities (deferred revenue) | $ 83,749 | $ 74,066 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred contract cost, recognition period | 3 months | |
Deferred contracts costs | $ 26.4 | $ 22.8 |
BUSINESS COMBINATIONS - HydroCh
BUSINESS COMBINATIONS - HydroChemPSC (Details) - HydroChemPSC | Oct. 08, 2021USD ($)employeeservice_location | Dec. 31, 2021USD ($) |
Business Acquisition [Line Items] | ||
Annual revenues reported by acquired entity in 2020 | $ 715,300,000 | |
Purchase price | 1,230,000,000 | |
Integration related costs | $ 6,000,000 | |
Other intangibles | 289,000,000 | |
Revenue of acquiree since acquisition date, actual | 166,100,000 | |
Operation expenses of acquiree since acquisition date, actual | 166,400,000 | |
Depreciation and amortization | $ 12,300,000 | |
Customer Relationships | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 215,000,000 | |
Finite-lived intangible asset, useful life (in years) | 25 years | |
Developed Technology | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 65,000,000 | |
Finite-lived intangible asset, useful life (in years) | 10 years | |
Trademarks and Trade Names | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 9,000,000 | |
Finite-lived intangible asset, useful life (in years) | 2 years | |
Secured senior term loans due October 8, 2028 ("2028 Term Loans") | Secured debt | ||
Business Acquisition [Line Items] | ||
Aggregate principal amount | $ 1,000,000,000 | |
HydroChemPSC | ||
Business Acquisition [Line Items] | ||
Entity number of employees | employee | 4,500 | |
Number of service locations (more than) | service_location | 240 |
BUSINESS COMBINATIONS - Assets
BUSINESS COMBINATIONS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Oct. 08, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,227,042 | $ 527,023 | $ 525,013 | |
HydroChemPSC | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable, including unbilled receivables | $ 131,924 | |||
Inventories and supplies | 3,162 | |||
Prepaid expenses and other current assets | 16,016 | |||
Property, plant and equipment | 313,540 | |||
Other intangibles | 289,000 | |||
Operating lease right-of-use assets | 34,347 | |||
Other non-current assets | 1,045 | |||
Current liabilities | (115,704) | |||
Current portion of operating lease liabilities | (11,659) | |||
Operating lease liabilities, less current portion | (26,128) | |||
Deferred tax liabilities | (85,908) | |||
Other long-term liabilities | (2,685) | |||
Total identifiable net assets | 546,950 | |||
Goodwill | 683,463 | |||
Total purchase price | $ 1,230,413 |
BUSINESS COMBINATIONS - Unaudit
BUSINESS COMBINATIONS - Unaudited Pro Forma Financial Information (Details) - HydroChemPSC - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Pro forma combined revenues | $ 4,380,724 | $ 3,859,430 |
Pro forma combined net income | $ 229,807 | $ 149,219 |
BUSINESS COMBINATIONS - Other 2
BUSINESS COMBINATIONS - Other 2021 Acquisition Activity (Details) - USD ($) $ in Thousands | Jan. 25, 2022 | Jun. 29, 2021 | Mar. 27, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||
Increase from current period acquisition | $ 699,812 | $ 1,439 | |||
Vertex Energy Inc | |||||
Business Acquisition [Line Items] | |||||
Consideration to acquire assets | $ 140,000 | ||||
Vertex Energy Inc | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Payment for acquisition termination fee | $ 3,000 | ||||
March 27, 2021 Acquisition | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 22,800 | ||||
Increase from current period acquisition | $ 16,300 |
BUSINESS COMBINATIONS - 2020 Ac
BUSINESS COMBINATIONS - 2020 Acquisition (Details) - USD ($) $ in Thousands | Apr. 17, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 699,812 | $ 1,439 | |
2020 Acquisitions | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 8,800 | ||
Goodwill | $ 1,400 |
BUSINESS COMBINATIONS - 2019 Ac
BUSINESS COMBINATIONS - 2019 Acquisitions (Details) - USD ($) $ in Thousands | May 31, 2019 | Mar. 01, 2019 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 699,812 | $ 1,439 | ||
2019 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 14,800 | $ 10,400 | ||
Goodwill | $ 7,400 | $ 5,200 |
INVENTORIES AND SUPPLIES (Detai
INVENTORIES AND SUPPLIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Inventories and supplies | $ 250,692 | $ 220,498 |
Oil and oil related products | ||
Inventory [Line Items] | ||
Inventories and supplies | 101,965 | 76,209 |
Supplies | ||
Inventory [Line Items] | ||
Inventories and supplies | 126,602 | 120,007 |
Solvent and solutions | ||
Inventory [Line Items] | ||
Inventories and supplies | 8,099 | 8,812 |
Other | ||
Inventory [Line Items] | ||
Inventories and supplies | $ 14,026 | $ 15,470 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 4,141,585 | $ 3,699,416 |
Less - accumulated depreciation and amortization | 2,278,410 | 2,174,118 |
Total property, plant and equipment, net | 1,863,175 | 1,525,298 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 165,010 | 139,776 |
Asset retirement costs (non-landfill) | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 19,105 | 16,407 |
Landfill assets | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 205,873 | 191,687 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 551,795 | 509,804 |
Right-of-use assets, finance leases | 8,900 | 8,900 |
Camp equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 127,680 | 159,021 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 912,836 | 844,026 |
Right-of-use assets, finance leases | 77,700 | 47,200 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,092,395 | 1,807,235 |
Right-of-use assets, finance leases | 9,300 | 9,300 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,444 | 7,082 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 60,447 | $ 24,378 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation inclusive of amortization | $ 263.4 | $ 257.1 | $ 265.5 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)reportingUnit | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Goodwill [Line Items] | |||
Number of reporting units | reportingUnit | 3 | ||
Amortization expense of permits and other intangible assets | $ | $ 34.7 | $ 35.8 | $ 35.2 |
Costs of intangible assets written-off | $ | $ 39.9 | ||
Environmental Services | |||
Goodwill [Line Items] | |||
Number of reporting units | reportingUnit | 2 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes to Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 527,023 | $ 525,013 |
Increase from current period acquisition | 699,812 | 1,439 |
Measurement period adjustments from prior period acquisitions | 23 | |
Decrease from disposition of business | (674) | |
Foreign currency translation | 207 | 1,222 |
Goodwill, end of period | 1,227,042 | 527,023 |
Environmental Services | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 401,680 | |
Increase from current period acquisition | 683,463 | 0 |
Measurement period adjustments from prior period acquisitions | 23 | |
Decrease from disposition of business | (674) | |
Foreign currency translation | 153 | 889 |
Goodwill, end of period | 1,085,534 | |
Safety-Kleen Sustainability Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 123,333 | |
Increase from current period acquisition | 16,349 | 1,439 |
Measurement period adjustments from prior period acquisitions | 0 | |
Decrease from disposition of business | 0 | |
Foreign currency translation | 54 | $ 333 |
Goodwill, end of period | $ 141,508 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Finite-lived and Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-lived intangible assets | ||
Finite-lived intangible assets, cost | $ 858,264 | $ 605,136 |
Accumulated Amortization | 336,543 | 341,672 |
Finite-lived intangible assets, net | 521,721 | 263,464 |
Total permits and other intangible assets, cost | 981,455 | 728,292 |
Total permits and other intangible assets, net | 644,912 | 386,620 |
Trademarks and trade names | ||
Finite-lived intangible assets | ||
Trademarks and trade names | 123,191 | 123,156 |
Permits | ||
Finite-lived intangible assets | ||
Finite-lived intangible assets, cost | 187,519 | 183,766 |
Accumulated Amortization | 102,408 | 95,033 |
Finite-lived intangible assets, net | 85,111 | 88,733 |
Customer and supplier relationships | ||
Finite-lived intangible assets | ||
Finite-lived intangible assets, cost | 576,474 | 382,083 |
Accumulated Amortization | 214,776 | 211,895 |
Finite-lived intangible assets, net | 361,698 | 170,188 |
Other intangible assets | ||
Finite-lived intangible assets | ||
Finite-lived intangible assets, cost | 94,271 | 39,287 |
Accumulated Amortization | 19,359 | 34,744 |
Finite-lived intangible assets, net | $ 74,912 | $ 4,543 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Expected Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Expected amortization | ||
2022 | $ 48,845 | |
2023 | 44,595 | |
2024 | 40,342 | |
2025 | 38,485 | |
2026 | 36,684 | |
Thereafter | 312,770 | |
Finite-lived intangible assets, net | $ 521,721 | $ 263,464 |
ACCRUED EXPENSES - Schedule of
ACCRUED EXPENSES - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued insurance | $ 102,853 | $ 77,514 |
Accrued interest | 19,785 | 19,697 |
Accrued compensation and benefits | 133,604 | 81,437 |
Accrued income, real estate, sales and other taxes | 29,954 | 25,843 |
Interest rate swap liability | 17,383 | 33,630 |
Accrued other | 87,835 | 57,702 |
Total accrued expenses | $ 391,414 | $ 295,823 |
ACCRUED EXPENSES - Narrative (D
ACCRUED EXPENSES - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued insurance, employee medical insurance costs | $ 18.6 | $ 9.4 |
Accrual loss for workers' compensation, comprehensive general liability and vehicle liability self-insurance programs | $ 82.8 | $ 65.6 |
CLOSURE AND POST-CLOSURE LIAB_3
CLOSURE AND POST-CLOSURE LIABILITIES - Changes in Post-Closure Liabilities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)landfill_site | |
Changes to post-closure liabilities | ||
Balance at the beginning of the period | $ 87,926 | $ 75,651 |
Liabilities assumed in acquisitions | 1,446 | 265 |
New asset retirement obligations | 2,443 | 2,101 |
Accretion | 7,357 | 6,653 |
Changes in estimates recorded to consolidated statement of operations | 2,683 | 6,568 |
Changes in estimates recorded to consolidated balance sheet | 3,712 | 682 |
Expenditures | (6,602) | (4,198) |
Currency translation and other | 138 | 204 |
Balance at the end of the period | 99,103 | $ 87,926 |
Number of landfill sites closed during period | landfill_site | 2 | |
Increase in facility closure costs | 2,300 | $ 6,800 |
Landfill Retirement Liability | ||
Changes to post-closure liabilities | ||
Balance at the beginning of the period | 48,412 | 39,401 |
Liabilities assumed in acquisitions | 0 | 0 |
New asset retirement obligations | 2,443 | 2,101 |
Accretion | 3,655 | 3,254 |
Changes in estimates recorded to consolidated statement of operations | 2,287 | 6,465 |
Changes in estimates recorded to consolidated balance sheet | 2,297 | 481 |
Expenditures | (5,818) | (3,445) |
Currency translation and other | 149 | 155 |
Balance at the end of the period | 53,425 | 48,412 |
Non-Landfill Retirement Liability | ||
Changes to post-closure liabilities | ||
Balance at the beginning of the period | 39,514 | 36,250 |
Liabilities assumed in acquisitions | 1,446 | 265 |
New asset retirement obligations | 0 | 0 |
Accretion | 3,702 | 3,399 |
Changes in estimates recorded to consolidated statement of operations | 396 | 103 |
Changes in estimates recorded to consolidated balance sheet | 1,415 | 201 |
Expenditures | (784) | (753) |
Currency translation and other | (11) | 49 |
Balance at the end of the period | $ 45,678 | $ 39,514 |
CLOSURE AND POST-CLOSURE LIAB_4
CLOSURE AND POST-CLOSURE LIABILITIES - Anticipated Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Environmental Property Sale, Disposal or Abandonment Costs | |||
2022 | $ 12,612 | ||
2023 | 11,452 | ||
2024 | 13,460 | ||
2025 | 10,791 | ||
2026 | 8,143 | ||
Thereafter | 276,236 | ||
Undiscounted closure and post-closure liabilities | 332,694 | ||
Less: Discount at credit-adjusted risk-free rate | (158,941) | ||
Less: Undiscounted estimated closure and post-closure liabilities relating to airspace not yet consumed | (74,650) | ||
Present value of closure and post-closure liabilities | $ 99,103 | $ 87,926 | $ 75,651 |
REMEDIAL LIABILITIES - Changes
REMEDIAL LIABILITIES - Changes in Remedial Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes to remedial liabilities | ||
Balance at the beginning of the period | $ 114,813 | $ 114,173 |
Accretion | 4,388 | 4,398 |
Changes in estimates recorded to consolidated statement of operations | 296 | 4,130 |
Expenditures | (8,904) | (8,203) |
Currency translation and other | 64 | 315 |
Liabilities assumed in acquisitions | 1,216 | |
Balance at the end of the period | 111,873 | 114,813 |
Remedial Liabilities for Landfill Sites | ||
Changes to remedial liabilities | ||
Balance at the beginning of the period | 1,865 | 1,851 |
Accretion | 90 | 90 |
Changes in estimates recorded to consolidated statement of operations | (126) | (15) |
Expenditures | (49) | (61) |
Currency translation and other | 0 | 0 |
Liabilities assumed in acquisitions | 0 | |
Balance at the end of the period | 1,780 | 1,865 |
Remedial Liabilities for Inactive Sites | ||
Changes to remedial liabilities | ||
Balance at the beginning of the period | 63,060 | 61,991 |
Accretion | 2,614 | 2,607 |
Changes in estimates recorded to consolidated statement of operations | (178) | 2,873 |
Expenditures | (4,889) | (4,332) |
Currency translation and other | (820) | (79) |
Liabilities assumed in acquisitions | 0 | |
Balance at the end of the period | 59,787 | 63,060 |
Remedial Liabilities (Including Superfund) for Non-Landfill Operations | ||
Changes to remedial liabilities | ||
Balance at the beginning of the period | 49,888 | 50,331 |
Accretion | 1,684 | 1,701 |
Changes in estimates recorded to consolidated statement of operations | 600 | 1,272 |
Expenditures | (3,966) | (3,810) |
Currency translation and other | 884 | 394 |
Liabilities assumed in acquisitions | 1,216 | |
Balance at the end of the period | $ 50,306 | $ 49,888 |
REMEDIAL LIABILITIES - Addition
REMEDIAL LIABILITIES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | |
Site Contingency [Line Items] | ||
Accrual for environmental loss contingencies | 5.00% | |
Remedial Liabilities for Inactive Sites | ||
Site Contingency [Line Items] | ||
Increase in estimated remedial liability | $ 3.3 | |
Remedial Liabilities for Superfund Sites | ||
Site Contingency [Line Items] | ||
Increase in estimated remedial liability | $ 1.8 |
REMEDIAL LIABILITIES - Anticipa
REMEDIAL LIABILITIES - Anticipated Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accrual for Environmental Loss Contingencies, Net [Abstract] | |||
2022 | $ 14,416 | ||
2023 | 17,530 | ||
2024 | 12,098 | ||
2025 | 7,769 | ||
2026 | 6,002 | ||
Thereafter | 73,185 | ||
Undiscounted remedial liabilities | 131,000 | ||
Less: Discount at risk free rates | (19,127) | ||
Total remedial liabilities | $ 111,873 | $ 114,813 | $ 114,173 |
REMEDIAL LIABILITIES - Estimate
REMEDIAL LIABILITIES - Estimates (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)facility | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 111,873 | $ 114,813 | $ 114,173 |
% of Total | 100.00% | ||
Reasonably possible additional liabilities | $ 21,137 | ||
Facilities now used in active conduct of the Company's business (44 facilities) | |||
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 42,875 | ||
% of Total | 38.30% | ||
Reasonably possible additional liabilities | $ 8,520 | ||
Number of facility by type | facility | 44 | ||
Inactive facilities not now used in active conduct of the Company's business but most of which were acquired because the assumption of remedial liabilities for such facilities was part of the purchase price for the CSD assets (24 facilities) | |||
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 59,801 | ||
% of Total | 53.50% | ||
Reasonably possible additional liabilities | $ 11,237 | ||
Number of facility by type | facility | 24 | ||
Superfund sites (16 sites) | |||
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 9,197 | ||
% of Total | 8.20% | ||
Reasonably possible additional liabilities | $ 1,380 | ||
Number of facility by type | facility | 16 | ||
Superfund sites (16 sites) | Various | |||
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 9,197 | ||
% of Total | 8.20% | ||
Reasonably possible additional liabilities | $ 1,380 | ||
Closed incinerator and landfill | Baton Rouge LA | |||
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 25,761 | ||
% of Total | 23.00% | ||
Reasonably possible additional liabilities | $ 4,306 | ||
Closed incinerator | Bridgeport, NJ | |||
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 17,792 | ||
% of Total | 15.90% | ||
Reasonably possible additional liabilities | $ 3,605 | ||
Idled incinerator and legal proceedings | Mercier, Quebec | |||
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 11,460 | ||
% of Total | 10.30% | ||
Reasonably possible additional liabilities | $ 1,729 | ||
Operating solvent recycling center | Linden, NJ | |||
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 6,974 | ||
% of Total | 6.20% | ||
Reasonably possible additional liabilities | $ 1,460 | ||
All other incinerators, landfills, wastewater treatment facilities and service centers (64 facilities) | |||
Site Contingency [Line Items] | |||
Number of facility by type | facility | 64 | ||
All other incinerators, landfills, wastewater treatment facilities and service centers (64 facilities) | Various | |||
Site Contingency [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 40,689 | ||
% of Total | 36.40% | ||
Reasonably possible additional liabilities | $ 8,657 |
FINANCING ARRANGEMENTS - Summar
FINANCING ARRANGEMENTS - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 17,535 | $ 7,535 |
Long-term debt, at par | 2,547,091 | 1,564,626 |
Unamortized debt issuance costs and discount, net | (30,067) | (14,985) |
Long-term debt, at carrying value | 2,517,024 | 1,549,641 |
Secured debt | Secured senior term loans | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 17,535 | 7,535 |
Secured debt | Secured senior term loans due June 30, 2024 ("2024 Term Loans") | ||
Debt Instrument [Line Items] | ||
Long-term debt, at par | 712,091 | 719,626 |
Secured debt | Secured senior term loans due October 8, 2028 ("2028 Term Loans") | ||
Debt Instrument [Line Items] | ||
Long-term debt, at par | 990,000 | 0 |
Unsecured debt | Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes") | ||
Debt Instrument [Line Items] | ||
Long-term debt, at par | $ 545,000 | 545,000 |
Interest rate (as a percent) | 4.875% | |
Unsecured debt | Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes") | ||
Debt Instrument [Line Items] | ||
Long-term debt, at par | $ 300,000 | $ 300,000 |
Interest rate (as a percent) | 5.125% |
FINANCING ARRANGEMENTS - Narrat
FINANCING ARRANGEMENTS - Narrative (Details) - USD ($) | Oct. 08, 2021 | Oct. 28, 2020 | Mar. 31, 2020 | Jul. 02, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 31, 2022 | Dec. 31, 2018 |
Financing arrangements | |||||||||
Effective interest rate (as a percent) | 4.67% | ||||||||
Loss on early extinguishment of debt | $ 0 | $ 0 | $ 6,131,000 | ||||||
Fair value of long-term obligations, including current portion | 2,600,000,000 | 1,600,000,000 | |||||||
Borrowings from revolving credit facility | 0 | 150,000,000 | $ 0 | ||||||
Revolving credit facility, available borrowing capacity | 261,400,000 | ||||||||
Letters of credit outstanding, amount | 138,600,000 | ||||||||
Derivative liability | $ 17,400,000 | 33,600,000 | |||||||
Interest rate swap | |||||||||
Financing arrangements | |||||||||
Basis spread on variable rate (as a percent) | 2.92% | ||||||||
Derivative notional amount | $ 350,000,000 | ||||||||
Interest rate swap | Subsequent Event | |||||||||
Financing arrangements | |||||||||
Derivative notional amount | $ 600,000,000 | ||||||||
Interest rate swap | Subsequent Event | Through June 30, 2023 | |||||||||
Financing arrangements | |||||||||
Derivative, fixed interest rate | 0.931% | ||||||||
Interest rate swap | Subsequent Event | From July 1, 2023 through September 30, 2027 | |||||||||
Financing arrangements | |||||||||
Derivative, fixed interest rate | 1.9645% | ||||||||
Secured senior term loans due October 8, 2028 ("2028 Term Loans") | Subsequent Event | |||||||||
Financing arrangements | |||||||||
Debt outstanding | $ 600,000,000 | ||||||||
Term Loans with Interest Rate Swap Agreements | |||||||||
Financing arrangements | |||||||||
Debt outstanding | $ 350,000,000 | ||||||||
Unsecured debt | |||||||||
Financing arrangements | |||||||||
Redemption percentage of principal amount | 100.00% | ||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 35.00% | ||||||||
Unsecured debt | Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes") | |||||||||
Financing arrangements | |||||||||
Aggregate principal amount | $ 545,000,000 | ||||||||
Redemption percentage of principal amount | 104.875% | ||||||||
Unsecured debt | Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes") | |||||||||
Financing arrangements | |||||||||
Aggregate principal amount | 300,000,000 | ||||||||
Redemption percentage of principal amount | 105.125% | ||||||||
Unsecured debt | Unsecured Senior Notes 2021 | |||||||||
Financing arrangements | |||||||||
Repurchased amount | 845,000,000 | ||||||||
Repayments of debt | 850,200,000 | ||||||||
Accrued interest | $ 4,000,000 | ||||||||
Secured debt | Secured senior term loans due October 8, 2028 ("2028 Term Loans") | |||||||||
Financing arrangements | |||||||||
Debt prepayment premium rate, percentage | 1.00% | ||||||||
Secured debt | Secured senior term loans due October 8, 2028 ("2028 Term Loans") | Eurodollar | |||||||||
Financing arrangements | |||||||||
Basis spread on variable rate (as a percent) | 2.00% | ||||||||
Debt, floor interest rate | 0.00% | ||||||||
Secured debt | Secured senior term loans due October 8, 2028 ("2028 Term Loans") | Base rate | |||||||||
Financing arrangements | |||||||||
Basis spread on variable rate (as a percent) | 1.00% | ||||||||
Debt, floor interest rate | 1.00% | ||||||||
Secured debt | Secured senior term loans due October 8, 2028 ("2028 Term Loans") | HydroChemPSC | |||||||||
Financing arrangements | |||||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||||
Net proceeds from the company’s issuance | $ 981,300,000 | ||||||||
Secured debt | Secured senior term loans due June 30, 2024 ("2024 Term Loans") | |||||||||
Financing arrangements | |||||||||
Debt outstanding | $ 719,600,000 | ||||||||
Secured debt | Secured senior term loans due June 30, 2024 ("2024 Term Loans") | Eurodollar | |||||||||
Financing arrangements | |||||||||
Basis spread on variable rate (as a percent) | 1.75% | ||||||||
Secured debt | Secured senior term loans due June 30, 2024 ("2024 Term Loans") | Base rate | |||||||||
Financing arrangements | |||||||||
Basis spread on variable rate (as a percent) | 0.75% | ||||||||
Secured debt | Secured senior term loans | |||||||||
Financing arrangements | |||||||||
Effective interest rate (as a percent) | 2.04% | ||||||||
LIne of credit | |||||||||
Financing arrangements | |||||||||
Credit facility, maximum borrowing capacity | $ 400,000,000 | ||||||||
Period for measurement of average liquidity (in days) | 30 days | ||||||||
LIne of credit | Minimum | |||||||||
Financing arrangements | |||||||||
Commitment fee (as a percent) | 0.25% | ||||||||
LIne of credit | Maximum | |||||||||
Financing arrangements | |||||||||
Commitment fee (as a percent) | 0.375% | ||||||||
LIne of credit | Parent and Domestic Subsidiaries | |||||||||
Financing arrangements | |||||||||
Credit available subject to percentage of accounts receivable (as a percent) | 85.00% | ||||||||
Credit available subject to percentage of cash deposited (as a percent) | 100.00% | ||||||||
LIne of credit | Canadian Subsidiaries | |||||||||
Financing arrangements | |||||||||
Credit available subject to percentage of accounts receivable (as a percent) | 85.00% | ||||||||
Credit available subject to percentage of cash deposited (as a percent) | 100.00% | ||||||||
LIne of credit | Revolving credit facility | |||||||||
Financing arrangements | |||||||||
Debt outstanding | $ 0 | $ 0 | |||||||
Borrowings from revolving credit facility | $ 150,000,000 | ||||||||
LIne of credit | Revolving credit facility | Parent and Domestic Subsidiaries | |||||||||
Financing arrangements | |||||||||
Credit facility, maximum borrowing capacity | $ 350,000,000 | ||||||||
LIne of credit | Revolving credit facility | Canadian Subsidiaries | |||||||||
Financing arrangements | |||||||||
Credit facility, maximum borrowing capacity | 50,000,000 | ||||||||
LIne of credit | Letters of credit | Parent and Domestic Subsidiaries | |||||||||
Financing arrangements | |||||||||
Credit facility, maximum borrowing capacity | $ 250,000,000 | ||||||||
LIne of credit | Base rate | Minimum | |||||||||
Financing arrangements | |||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||
LIne of credit | Base rate | Maximum | |||||||||
Financing arrangements | |||||||||
Basis spread on variable rate (as a percent) | 0.75% | ||||||||
LIne of credit | LIBOR | Minimum | |||||||||
Financing arrangements | |||||||||
Basis spread on variable rate (as a percent) | 1.50% | ||||||||
LIne of credit | LIBOR | Maximum | |||||||||
Financing arrangements | |||||||||
Basis spread on variable rate (as a percent) | 1.75% |
FINANCING ARRANGEMENTS - Summ_2
FINANCING ARRANGEMENTS - Summary of Redemption Prices (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instrument, Redemption [Line Items] | |
Debt redemption period | 12 months |
Unsecured debt | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage of principal amount | 100.00% |
Unsecured debt | Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes") | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage of principal amount | 104.875% |
Unsecured debt | Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes") | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage of principal amount | 105.125% |
Debt Instrument, Redemption, Period One | Unsecured debt | Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes") | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage of principal amount | 102.438% |
Debt Instrument, Redemption, Period One | Unsecured debt | Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes") | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage of principal amount | 102.563% |
Debt Instrument, Redemption, Period Two | Unsecured debt | Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes") | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage of principal amount | 101.219% |
Debt Instrument, Redemption, Period Two | Unsecured debt | Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes") | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage of principal amount | 101.281% |
Debt Instrument, Redemption, Period Three | Unsecured debt | Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes") | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage of principal amount | 100.00% |
Debt Instrument, Redemption, Period Three | Unsecured debt | Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes") | |
Debt Instrument, Redemption [Line Items] | |
Redemption percentage of principal amount | 100.00% |
INCOME TAXES - Provision for Ta
INCOME TAXES - Provision for Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Domestic | $ 223,438 | $ 168,117 | $ 156,571 |
Foreign | 46,277 | 6,433 | (8,332) |
Income from operations before provision for income taxes | 269,715 | 174,550 | 148,239 |
Current: | |||
Federal | 42,480 | 33,327 | 20,482 |
State | 18,126 | 14,575 | 14,564 |
Foreign | 4,380 | 1,559 | 7,448 |
Current income taxes | 64,986 | 49,461 | 42,494 |
Deferred | |||
Federal | 2,275 | (965) | 7,933 |
State | (4,777) | (2,506) | 550 |
Foreign | 3,984 | (6,277) | (478) |
Deferred income taxes | 1,482 | (9,748) | 8,005 |
Provision for income taxes | $ 66,468 | $ 39,713 | $ 50,499 |
Effective tax rate | 24.60% | 22.80% | 34.10% |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Tax expense at US statutory rate | $ 56,640 | $ 36,655 | $ 31,130 |
State income taxes, net of federal benefit | 12,101 | 9,837 | 10,597 |
Foreign rate differential | 1,922 | 1,256 | 276 |
Valuation allowance | (9,139) | (11,339) | 4,459 |
Uncertain tax position interest and penalties | 263 | (712) | 474 |
Tax credits expired (used) | 2,530 | 2,039 | (50) |
Non-deductible compensation | 2,326 | 1,406 | 1,922 |
Other | (175) | 571 | 1,691 |
Provision for income taxes | $ 66,468 | $ 39,713 | $ 50,499 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax benefits related to tax deductible foreign currency losses | $ 1.3 | ||
Unrecognized tax benefits from transfer pricing adjustment | $ 3.2 | ||
Unrecognized tax benefits, offsetting benefit | 3.2 | ||
Decrease of unrecognized tax benefits reasonably possible within the next 12 months | 0.3 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 2.3 | $ 2.1 | $ 1.7 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Provision for doubtful accounts | $ 10,188 | $ 10,305 |
Closure, post-closure and remedial liabilities | 28,206 | 28,665 |
Operating lease liabilities | 42,218 | 38,151 |
Accrued expenses | 20,455 | 16,797 |
Accrued compensation and benefits | 24,504 | 11,372 |
Net operating loss carryforwards | 68,381 | 50,433 |
Tax credit carryforwards | 12,368 | 14,471 |
Interest rate swap liability | 5,215 | 10,089 |
Stock-based compensation | 2,705 | 3,040 |
Other | 5,635 | 5,553 |
Total deferred tax assets | 219,875 | 188,876 |
Deferred tax liabilities: | ||
Property, plant and equipment | (273,883) | (194,604) |
Operating lease right-of-use assets | (41,260) | (38,018) |
Permits and other intangible assets | (138,241) | (95,492) |
Prepaid expenses | (10,212) | (9,660) |
Total deferred tax liabilities | (463,596) | (337,774) |
Total net deferred tax liability before valuation allowance | (243,721) | (148,898) |
Less valuation allowance | (69,806) | (77,044) |
Net deferred tax liabilities | (313,527) | $ (225,942) |
State net operating loss carryforwards, begin to expire in 2022 | 280,600 | |
Federal operating loss carryforwards, begin to expire in 2024 | 124,100 | |
Foreign net operating loss carryforwards, begin to expire in 2022 | 116,000 | |
Foreign tax credit carryforwards, begin to expire between 2022 and 2024 | $ 11,000 |
INCOME TAXES - Valuation Allowa
INCOME TAXES - Valuation Allowance (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Valuation allowance, foreign tax credits | $ 11,047 | $ 14,127 |
Valuation allowance, acquired federal net operating losses | 3,788 | 779 |
Valuation allowance, state net operating loss carryforwards | 12,053 | 10,429 |
Valuation allowance, foreign net operating loss carryforwards | 26,697 | 29,839 |
Valuation allowance, deferred tax assets of a Canadian subsidiary | 10,701 | 11,468 |
Valuation allowance, realized and unrealized capital losses | 5,520 | 10,402 |
Valuation allowance | $ 69,806 | $ 77,044 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of year | $ 5,490 | $ 6,414 | $ 3,159 |
Additions to prior year tax positions | 0 | 3,354 | |
Reductions to prior year tax positions | (833) | ||
Expirations | 0 | (203) | (209) |
Foreign currency translation | 6 | 112 | 110 |
Unrecognized tax benefits, end of year | $ 5,496 | $ 5,490 | $ 6,414 |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation of Basic and Diluted Earnings Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator for basic and diluted earnings per share: | |||
Net income | $ 203,247 | $ 134,837 | $ 97,740 |
Denominator: | |||
Weighted basic shares outstanding (in shares) | 54,514 | 55,479 | 55,845 |
Dilutive effect of equity-based compensation awards (in shares) | 247 | 211 | 284 |
Weighted dilutive shares outstanding (in shares) | 54,761 | 55,690 | 56,129 |
Basic earnings per share (in dollars per share) | $ 3.73 | $ 2.43 | $ 1.75 |
Diluted earnings per share (in dollars per share) | $ 3.71 | $ 2.42 | $ 1.74 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Number of performance stock awards that performance criteria not attained (in shares) | 14,237 | 53,667 | 122,785 |
Restricted Stock and Performance Stock Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 67,981 | 8,878 | 16,304 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Stock repurchase program, authorized amount | $ 600,000 | ||
Repurchase of common stock (in shares) | 0.6 | 1.2 | 0.3 |
Repurchases of common stock | $ 54,410 | $ 74,844 | $ 21,390 |
Stock repurchase program, remaining authorized repurchase amount | $ 155,400 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Equity | |||
Beginning balance | $ 1,341,551 | $ 1,269,813 | $ 1,169,756 |
Other comprehensive (loss) income before reclassifications | 5,695 | (11,023) | 10,719 |
Amounts reclassified out of accumulated other comprehensive loss | 10,011 | 8,180 | 2,667 |
Tax benefit (expense) | (241) | 1,417 | (66) |
Other comprehensive income (loss), net of tax | 15,465 | (1,426) | 13,320 |
Ending balance | 1,513,887 | 1,341,551 | 1,269,813 |
Foreign Currency Translation Adjustments | |||
Increase (Decrease) in Equity | |||
Beginning balance | (176,234) | (187,795) | (212,925) |
Other comprehensive (loss) income before reclassifications | (1,590) | 10,212 | 25,130 |
Amounts reclassified out of accumulated other comprehensive loss | 0 | 0 | 0 |
Tax benefit (expense) | 0 | 1,349 | 0 |
Other comprehensive income (loss), net of tax | (1,590) | 11,561 | 25,130 |
Ending balance | (177,824) | (176,234) | (187,795) |
Unrealized (loss) gain on Available-for-Sale Securities | |||
Increase (Decrease) in Equity | |||
Beginning balance | 135 | 143 | (69) |
Other comprehensive (loss) income before reclassifications | (361) | (10) | (70) |
Amounts reclassified out of accumulated other comprehensive loss | 0 | 0 | 332 |
Tax benefit (expense) | 76 | 2 | (50) |
Other comprehensive income (loss), net of tax | (285) | (8) | 212 |
Ending balance | (150) | 135 | 143 |
Unrealized loss on Interest Rate Hedge | |||
Increase (Decrease) in Equity | |||
Beginning balance | (33,629) | (20,839) | (8,773) |
Other comprehensive (loss) income before reclassifications | 6,235 | (20,970) | (14,401) |
Amounts reclassified out of accumulated other comprehensive loss | 10,011 | 8,180 | 2,335 |
Tax benefit (expense) | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 16,246 | (12,790) | (12,066) |
Ending balance | (17,383) | (33,629) | (20,839) |
Unrealized (loss) gain on unfunded pension liability | |||
Increase (Decrease) in Equity | |||
Beginning balance | (1,749) | (1,560) | (1,604) |
Other comprehensive (loss) income before reclassifications | 1,411 | (255) | 60 |
Amounts reclassified out of accumulated other comprehensive loss | 0 | 0 | 0 |
Tax benefit (expense) | (317) | 66 | (16) |
Other comprehensive income (loss), net of tax | 1,094 | (189) | 44 |
Ending balance | (655) | (1,749) | (1,560) |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Equity | |||
Beginning balance | (211,477) | (210,051) | (223,371) |
Other comprehensive income (loss), net of tax | 15,465 | (1,426) | 13,320 |
Ending balance | $ (196,012) | $ (211,477) | $ (210,051) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax benefit (expense) | $ (241) | $ 1,417 | $ (66) |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Tax benefit (expense) | $ 0 | $ 1,349 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other (expense) income, net | $ (515) | $ (290) | $ 2,897 |
Interest expense, net of interest income | 77,657 | 73,120 | 78,670 |
Unrealized (loss) gain on Available-for-Sale Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other (expense) income, net | 0 | 0 | (332) |
Unrealized loss on Interest Rate Hedge | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense, net of interest income | $ (10,011) | $ (8,180) | $ (2,335) |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock-Based Compensation (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 18.8 | $ 18.5 | $ 17.8 |
Total income tax benefit from stock-based compensation | $ 3.5 | $ 4.2 | $ 3.1 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | 3 years | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 5 years | 5 years | |
2020 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 2.5 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Awards (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Unvested, beginning of period (in shares) | 493,879 | ||
Granted (in shares) | 205,984 | ||
Vested (in shares) | (194,178) | ||
Forfeited (in shares) | (53,488) | ||
Unvested, end of period (in shares) | 452,197 | 493,879 | |
Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of period (in dollars per share) | $ 59.74 | ||
Granted (in dollars per share) | 96.69 | ||
Vested (in dollars per share) | 58.12 | ||
Forfeited (in dollars per share) | 63.01 | ||
Unvested, end of period (in dollars per share) | $ 76.88 | $ 59.74 | |
Total unrecognized compensation cost | $ 25.8 | ||
Expected to be recognized over a weighted average period | 2 years 9 months 18 days | ||
Fair value of awards vested in period | $ 17.7 | $ 13.3 | $ 16.8 |
STOCK-BASED COMPENSATION - Perf
STOCK-BASED COMPENSATION - Performance Stock Awards (Details) - Performance Stock Awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Unvested, beginning of period (in shares) | 254,449 | ||
Granted (in shares) | 135,373 | ||
Vested (in shares) | (158,634) | ||
Forfeited (in shares) | (61,431) | ||
Unvested, end of period (in shares) | 169,757 | 254,449 | |
Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of period (in dollars per share) | $ 61.75 | ||
Granted (in dollars per share) | 92.94 | ||
Vested (in dollars per share) | 61.52 | ||
Forfeited (in dollars per share) | 65.28 | ||
Unvested, end of period (in dollars per share) | $ 85.56 | $ 61.75 | |
Total unrecognized compensation cost | $ 7.3 | ||
Fair value of awards vested in period | $ 15 | $ 3.5 | $ 8.1 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Legal and Administrative Proceedings (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($)proceedingclaim | Dec. 31, 2012CAD ($) | Dec. 31, 1999municipality | Dec. 31, 1968permit | Dec. 31, 2020USD ($) | |
Legal and Administrative Proceedings | |||||
Loss contingency accrual | $ 36.1 | $ 29.8 | |||
Product Liability Cases | |||||
Legal and Administrative Proceedings | |||||
Number of proceedings | proceeding | 61 | ||||
Loss contingency, claims settled and dismissed, claims | claim | 21 | ||||
Legal and Administrative Proceedings | |||||
Legal and Administrative Proceedings | |||||
Loss contingency accrual | $ 24.1 | 24 | |||
Federal, State, and Provincial Enforcement Actions | |||||
Legal and Administrative Proceedings | |||||
Loss contingency accrual | $ 12 | $ 5.8 | |||
Number of proceedings | proceeding | 2 | ||||
Ville Mercier | |||||
Legal and Administrative Proceedings | |||||
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 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Superfund Proceedings (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)site | Dec. 31, 2020USD ($) | |
Remedial Liabilities for Inactive Sites | ||
Superfund Proceedings | ||
Increase in estimated remedial liability | $ | $ 3.3 | |
Superfund Proceedings | ||
Superfund Proceedings | ||
Number of sites subject to proceedings under federal or state superfund laws | 131 | |
Number of sites owned by the entity subject to proceedings under federal or state superfund laws | 6 | |
Number of sites owned by third parties subject to proceedings under federal or state superfund laws | 125 | |
Number of sites for which environmental remediation expense is settled | 30 | |
Third party sites requiring expenditure on remediation | 15 | |
Number of sites for which environmental remediation expense is not required | 80 | |
Loss contingency, liability limit amount | $ | $ 1 | |
Number of sites which potential liability could exceed $1.0 million | 3 | |
Notices received from owners of third party sites seeking indemnification from the company | 6 | |
Certain other third party sites | ||
Superfund Proceedings | ||
Indemnification agreement with third party sites, sites | 11 | |
Safety-Kleen Sustainability Solutions | ||
Superfund Proceedings | ||
Notices received from owners of third party sites seeking indemnification from the company | 17 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Federal, State and Provincial Enforcement Actions (Details) - Federal, State, and Provincial Enforcement Actions $ in Millions | Dec. 31, 2021USD ($)proceeding |
Federal and State Enforcement Actions | |
Number of proceedings | proceeding | 2 |
Loss contingency, liability limit amount | $ | $ 1 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Self Insurance Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Product Liability Contingency [Line Items] | ||
Retention for environmental impairment | $ 1,000 | |
Annual aggregate self-insured corridor retention amount | 5,000 | |
Self-Insurance Liabilities | $ 82,800 | $ 65,600 |
Weighted average risk free discount rate for self insurance liabilities | 0.97% | 0.29% |
Self Insurance Losses Expected [Abstract] | ||
2022 | $ 29,956 | |
2023 | 17,569 | |
2024 | 12,113 | |
2025 | 8,003 | |
2026 | 6,250 | |
Thereafter | 9,930 | |
Undiscounted self-insurance liabilities | 83,821 | |
Less: Discount | (1,051) | |
Total self-insurance liabilities (included in accrued expenses) | 82,770 | |
Minimum | ||
Product Liability Contingency [Line Items] | ||
Deductible medical insurance policy | 900 | |
Safety-Kleen Sustainability Solutions | ||
Product Liability Contingency [Line Items] | ||
Deductible per occurrence for workers compensation | 1,000 | |
Deductible per occurrence for general liability | 2,000 | |
Deductible per occurrence for vehicle liability | $ 2,000 |
LEASES - Supplemental Finance L
LEASES - Supplemental Finance Lease Balance Sheet information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ROU assets: | ||
Finance lease (included in property, plant and equipment, net) | $ 81,267 | $ 60,271 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Current portion of lease liabilities: | ||
Finance lease (included in accrued expenses) | $ 10,893 | $ 5,840 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Long-term portion of lease liabilities: | ||
Finance lease (included in deferred taxes, unrecognized tax benefits and other long-term liabilities) | $ 72,051 | $ 55,038 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
LEASES - Lease Expense (Details
LEASES - Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 50,264 | $ 53,194 | $ 55,402 |
Finance lease cost: | |||
Amortization of ROU assets | 9,504 | 4,966 | 1,142 |
Interest on lease liabilities | 2,544 | 1,523 | 1,415 |
Total finance lease cost | 12,048 | 6,489 | 2,557 |
Short-term lease cost | 102,913 | 70,692 | 84,749 |
Variable lease cost | 3,546 | 3,691 | 6,702 |
Total lease cost | $ 168,771 | $ 134,066 | $ 149,410 |
LEASES - Other Information rela
LEASES - Other Information related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Remaining Lease Term (years) | |||
Operating lease (in years) | 4 years 4 months 24 days | 5 years 1 month 6 days | |
Finance lease (in years) | 8 years 1 month 6 days | 9 years 3 months 18 days | |
Weighted Average Discount Rate | |||
Operating lease (as a percentage) | 4.35% | 4.89% | |
Finance lease (as a percentage) | 3.65% | 3.57% | |
Cash paid for amounts related to lease liabilities: | |||
Operating cash flows from operating leases | $ 50,963 | $ 53,498 | $ 56,240 |
Operating cash flows from finance leases | 2,544 | 1,523 | 1,415 |
Financing cash flows from finance leases | 8,458 | 4,469 | 586 |
ROU assets obtained in exchange for operating lease liabilities | 55,556 | 34,358 | 17,699 |
ROU assets obtained in exchange for finance lease liabilities | $ 30,476 | $ 32,526 | $ 33,449 |
LEASES - Schedule of Future Lea
LEASES - Schedule of Future Lease Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Leases | |
2022 | $ 56,124 |
2023 | 44,515 |
2024 | 32,302 |
2025 | 20,599 |
2026 | 13,735 |
Thereafter | 17,233 |
Total future lease payments | 184,508 |
Amount representing interest | (18,903) |
Total lease liabilities | 165,605 |
Finance Leases | |
2022 | 14,442 |
2023 | 12,915 |
2024 | 12,253 |
2025 | 11,578 |
2026 | 11,591 |
Thereafter | 34,077 |
Total future lease payments | 96,856 |
Amount representing interest | (13,912) |
Total lease liabilities | $ 82,944 |
SEGMENT REPORTING - Segment Inf
SEGMENT REPORTING - Segment Information, Revenues, EBITA, and Reconciliation to the Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 3,805,566 | $ 3,144,097 | $ 3,412,190 |
Adjusted EBITDA | 676,606 | 573,804 | 558,133 |
Reconciliation to Consolidated Statements of Operations: | |||
Accretion of environmental liabilities | 11,745 | 11,051 | 10,136 |
Stock-based compensation | 18,839 | 18,502 | 17,816 |
Depreciation and amortization | 298,135 | 292,915 | 300,725 |
Income from operations | 347,887 | 251,336 | 229,456 |
Other expense (income), net | 515 | 290 | (2,897) |
Loss on early extinguishment of debt | 0 | 0 | 6,131 |
Loss (gain) on sale of businesses | 0 | 3,376 | (687) |
Interest expense, net of interest income | 77,657 | 73,120 | 78,670 |
Income from operations before provision for income taxes | 269,715 | 174,550 | 148,239 |
Property, plant and equipment, net | 1,863,175 | 1,525,298 | |
Goodwill | 1,227,042 | 527,023 | 525,013 |
Permits and other intangibles, net | 644,912 | 386,620 | |
Permits and other intangibles, net | 1,871,954 | 913,643 | |
Environmental Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 3,032,454 | 2,635,901 | 2,795,994 |
Reconciliation to Consolidated Statements of Operations: | |||
Goodwill | 1,085,534 | 401,680 | |
Safety-Kleen Sustainability Solutions | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 772,813 | 507,906 | 615,060 |
Reconciliation to Consolidated Statements of Operations: | |||
Goodwill | 141,508 | 123,333 | |
Operating segments | Environmental Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 3,025,907 | 2,637,641 | 2,802,682 |
Adjusted EBITDA | 659,718 | 665,918 | 600,413 |
Reconciliation to Consolidated Statements of Operations: | |||
Property, plant and equipment, net | 1,374,913 | 1,068,910 | |
Goodwill | 1,085,534 | 401,918 | |
Permits and other intangibles, net | 498,739 | 228,237 | |
Permits and other intangibles, net | 1,584,273 | 630,155 | |
Operating segments | Safety-Kleen Sustainability Solutions | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 779,360 | 506,166 | 608,372 |
Adjusted EBITDA | 227,354 | 83,214 | 128,249 |
Reconciliation to Consolidated Statements of Operations: | |||
Property, plant and equipment, net | 373,721 | 366,160 | |
Goodwill | 141,508 | 125,105 | |
Permits and other intangibles, net | 146,173 | 158,383 | |
Permits and other intangibles, net | 287,681 | 283,488 | |
Intersegment revenues, net | Environmental Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 6,547 | (1,740) | (6,688) |
Intersegment revenues, net | Safety-Kleen Sustainability Solutions | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (6,547) | 1,740 | 6,688 |
Corporate Items | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 299 | 290 | 1,136 |
Adjusted EBITDA | (210,466) | (175,328) | (170,529) |
Reconciliation to Consolidated Statements of Operations: | |||
Property, plant and equipment, net | 114,541 | 90,228 | |
Operating segments and corporate non segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 299 | $ 290 | $ 1,136 |
SEGMENT REPORTING - Assets by G
SEGMENT REPORTING - Assets by Geographical Area (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 1,863,175 | $ 1,525,298 |
Percent of property, plant and equipment, net | 100.00% | 100.00% |
Permits and other intangibles, net | $ 644,912 | $ 386,620 |
Percent of permits and other intangibles, net | 100.00% | 100.00% |
Assets | $ 5,653,699 | $ 4,131,520 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 1,610,402 | $ 1,246,758 |
Percent of property, plant and equipment, net | 86.40% | 81.70% |
Permits and other intangibles, net | $ 604,076 | $ 342,787 |
Percent of permits and other intangibles, net | 93.70% | 88.70% |
Assets | $ 5,077,585 | $ 3,447,811 |
Canada and other foreign | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 252,773 | $ 278,540 |
Percent of property, plant and equipment, net | 13.60% | 18.30% |
Permits and other intangibles, net | $ 40,836 | $ 43,833 |
Percent of permits and other intangibles, net | 6.30% | 11.30% |
Assets | $ 576,114 | $ 683,709 |