UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________

FORM 10-Q

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED

~~JUNE 30, 2020~~MARCH 31, 2021

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission File Number 001-34223

_______________________

CLEAN HARBORS, INC.

(Exact name of registrant as specified in its charter)

Massachusetts

04-2997780

(State or Other Jurisdiction of Incorporation or Organization)

(IRS Employer Identification No.)

42 Longwater Drive

Norwell

02061-9149

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including area code: (781) 792-5000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, $0.01 par value

CLH

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of Common Stock, $0.01 par value, of the registrant outstanding at ~~July 31, 2020~~April 30, 2021 was ~~55,638,158.~~54,564,897.

CLEAN HARBORS, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS


			Page No.

PART I: FINANCIAL INFORMATION

ITEM 1: Unaudited Financial Statements
Consolidated Balance Sheets			1
Unaudited Consolidated Statements of Operations			2
Unaudited Consolidated Statements of Comprehensive Income (Loss)			3
Unaudited Consolidated Statements of Cash Flows			4
Unaudited Consolidated Statements of Stockholders’ Equity			5
Notes to Unaudited Consolidated Financial Statements			6

ITEM 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations			2019

ITEM 3: Quantitative and Qualitative Disclosures About Market Risk			3329

ITEM 4: Controls and Procedures			3429

PART II: OTHER INFORMATION

ITEM 1: Legal Proceedings			3531
ITEM 1A: Risk Factors			3531
ITEM 2: Unregistered Sales of Equity Securities and Use of Proceeds			3531
ITEM 3: Defaults Upon Senior Securities			3631
ITEM 4: Mine Safety Disclosures			3631
ITEM 5: Other Information			3631
ITEM 6: Exhibits			3632
Signatures			3733

Table of Contents

CLEAN HARBORS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands)


		June 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
ASSETS	ASSETS	(unaudited)				ASSETS	(unaudited)
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	447,366	$	371,991	Cash and cash equivalents	$	496,383	$	519,101
Short-term marketable securities	Short-term marketable securities	59,326		42,421		Short-term marketable securities	74,320		51,857
Accounts receivable, net of allowances aggregating $44,632 and $38,711, respectively		572,373		644,738
Accounts receivable, net of allowances aggregating $44,407 and $44,749, respectively						Accounts receivable, net of allowances aggregating $44,407 and $44,749, respectively	620,184		611,534
Unbilled accounts receivable	Unbilled accounts receivable	44,761		56,326		Unbilled accounts receivable	55,239		55,681
Deferred costs		18,715		21,746
Inventories and supplies	Inventories and supplies	219,808		214,744		Inventories and supplies	219,499		220,498
Prepaid expenses and other current assets	Prepaid expenses and other current assets	69,455		48,942		Prepaid expenses and other current assets	76,726		67,051
Total current assets	Total current assets	1,431,804		1,400,908		Total current assets	1,542,351		1,525,722
Property, plant and equipment, net	Property, plant and equipment, net	1,553,808		1,588,151		Property, plant and equipment, net	1,527,944		1,525,298
Other assets:	Other assets:					Other assets:
Operating lease right-of-use assets	Operating lease right-of-use assets	153,522		162,206		Operating lease right-of-use assets	142,006		150,341
Goodwill	Goodwill	523,154		525,013		Goodwill	543,605		527,023
Permits and other intangibles, net	Permits and other intangibles, net	400,448		419,066		Permits and other intangibles, net	380,053		386,620
Other	Other	14,893		13,560		Other	16,580		16,516
Total other assets	Total other assets	1,092,017		1,119,845		Total other assets	1,082,244		1,080,500
Total assets	Total assets	$	4,077,629	$	4,108,904	Total assets	$	4,152,539��	$	4,131,520

LIABILITIES AND STOCKHOLDERS' EQUITY	LIABILITIES AND STOCKHOLDERS' EQUITY					LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:	Current liabilities:					Current liabilities:
Current portion of long-term obligations		$	7,535	$	7,535
Current portion of long-term debt						Current portion of long-term debt	$	7,535	$	7,535

Accounts payable	Accounts payable	188,340		298,375		Accounts payable	213,355		195,878
Deferred revenue	Deferred revenue	61,902		73,370		Deferred revenue	83,165		74,066
Accrued expenses	Accrued expenses	289,414		276,540		Accrued expenses	284,212		295,823
Current portion of closure, post-closure and remedial liabilities	Current portion of closure, post-closure and remedial liabilities	19,129		23,301		Current portion of closure, post-closure and remedial liabilities	26,896		26,093
Current portion of operating lease liabilities	Current portion of operating lease liabilities	38,620		40,979		Current portion of operating lease liabilities	35,390		36,750
Total current liabilities	Total current liabilities	604,940		720,100		Total current liabilities	650,553		636,145
Other liabilities:	Other liabilities:					Other liabilities:
Closure and post-closure liabilities, less current portion of $5,708 and $7,283, respectively		76,933		68,368
Remedial liabilities, less current portion of $13,421 and $16,018, respectively		99,062		98,155
Long-term obligations, less current portion		1,626,871		1,554,116
Closure and post-closure liabilities, less current portion of $11,887 and $13,903, respectively						Closure and post-closure liabilities, less current portion of $11,887 and $13,903, respectively	79,218		74,023
Remedial liabilities, less current portion of $15,009 and $12,190, respectively						Remedial liabilities, less current portion of $15,009 and $12,190, respectively	99,239		102,623
Long-term debt, less current portion						Long-term debt, less current portion	1,548,517		1,549,641
Operating lease liabilities, less current portion	Operating lease liabilities, less current portion	115,089		121,020		Operating lease liabilities, less current portion	107,554		114,258

Deferred taxes, unrecognized tax benefits and other long-term liabilities		300,763		277,332
Deferred tax liabilities						Deferred tax liabilities	230,236		230,097
Other long-term liabilities						Other long-term liabilities	88,772		83,182
Total other liabilities	Total other liabilities	2,218,718		2,118,991		Total other liabilities	2,153,536		2,153,824
Commitments and contingent liabilities (See Note 16)	Commitments and contingent liabilities (See Note 16)					Commitments and contingent liabilities (See Note 16)	0		0
Stockholders’ equity:	Stockholders’ equity:					Stockholders’ equity:
Common stock, $0.01 par value: authorized 80,000,000 shares; issued and outstanding 55,612,860 and 55,797,734 shares, respectively		556		558
Common stock, $0.01 par value: authorized 80,000,000 shares; issued and outstanding 54,550,817 and 54,772,696 shares, respectively						Common stock, $0.01 par value: authorized 80,000,000 shares; issued and outstanding 54,550,817 and 54,772,696 shares, respectively	546		548

Additional paid-in capital	Additional paid-in capital	629,755		644,412		Additional paid-in capital	555,966		582,749
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(251,829)		(210,051)		Accumulated other comprehensive loss	(199,529)		(211,477)
Accumulated earnings	Accumulated earnings	875,489		834,894		Accumulated earnings	991,467		969,731
Total stockholders’ equity	Total stockholders’ equity	1,253,971		1,269,813		Total stockholders’ equity	1,348,450		1,341,551
Total liabilities and stockholders’ equity	Total liabilities and stockholders’ equity	$	4,077,629	$	4,108,904	Total liabilities and stockholders’ equity	$	4,152,539	$	4,131,520

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Table of Contents

CLEAN HARBORS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)


		Three Months Ended						Six Months Ended					Three Months Ended
		June 30,						June 30,					March 31,
		2020		2019		2020		2019			2021		2020
Revenues:	Revenues:									Revenues:
Service revenues	Service revenues	$	637,839	$	715,085	$	1,357,706	$	1,371,743	Service revenues	$	662,708	$	719,867
Product revenues	Product revenues	72,161		153,593		210,857		277,774		Product revenues	145,440		138,696
Total revenues	Total revenues	710,000		868,678		1,568,563		1,649,517		Total revenues	808,148		858,563
Cost of revenues: (exclusive of items shown separately below)	Cost of revenues: (exclusive of items shown separately below)									Cost of revenues: (exclusive of items shown separately below)
Service revenues	Service revenues	411,065		480,229		903,781		943,712		Service revenues	450,338		492,716
Product revenues	Product revenues	59,616		114,704		173,566		215,585		Product revenues	110,198		113,950
Total cost of revenues	Total cost of revenues	470,681		594,933		1,077,347		1,159,297		Total cost of revenues	560,536		606,666
Selling, general and administrative expenses	Selling, general and administrative expenses	103,839		123,920		233,146		238,732		Selling, general and administrative expenses	121,641		129,307
Accretion of environmental liabilities	Accretion of environmental liabilities	2,766		2,560		5,327		5,134		Accretion of environmental liabilities	2,953		2,561
Depreciation and amortization	Depreciation and amortization	72,494		74,217		147,027		149,572		Depreciation and amortization	72,163		74,533

Income from operations	Income from operations	60,220		73,048		105,716		96,782		Income from operations	50,855		45,496
Other (expense) income, net		(500)		(564)		(2,865)		2,419
Other expense, net										Other expense, net	(1,228)		(2,365)
Loss on sale of businesses										Loss on sale of businesses	0		(3,074)

Loss on sale of businesses		(184)		—		(3,258)		—
Interest expense, net of interest income of $668, $903, $1,666 and $1,829, respectively		(18,654)		(20,215)		(37,441)		(39,979)
Interest expense, net of interest income of $479 and $998, respectively										Interest expense, net of interest income of $479 and $998, respectively	(17,918)		(18,787)
Income before provision for income taxes	Income before provision for income taxes	40,882		52,269		62,152		59,222		Income before provision for income taxes	31,709		21,270
Provision for income taxes	Provision for income taxes	11,859		16,025		21,557		22,002		Provision for income taxes	9,973		9,698
Net income	Net income	$	29,023	$	36,244	$	40,595	$	37,220	Net income	$	21,736	$	11,572
Earnings per share:	Earnings per share:									Earnings per share:
Basic	Basic	$	0.52	$	0.65	$	0.73	$	0.67	Basic	$	0.40	$	0.21
Diluted	Diluted	$	0.52	$	0.65	$	0.73	$	0.66	Diluted	$	0.39	$	0.21
Shares used to compute earnings per share - Basic	Shares used to compute earnings per share - Basic	55,590		55,875		55,673		55,861		Shares used to compute earnings per share - Basic	54,723		55,757
Shares used to compute earnings per share - Diluted	Shares used to compute earnings per share - Diluted	55,748		56,066		55,882		56,001		Shares used to compute earnings per share - Diluted	55,043		56,055

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Table of Contents

CLEAN HARBORS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)


		Three Months Ended						Six Months Ended					Three Months Ended
		June 30,						June 30,					March 31,
		2020		2019		2020		2019			2021		2020
Net income	Net income	$	29,023	$	36,244	$	40,595	$	37,220	Net income	$	21,736	$	11,572
Other comprehensive income (loss), net of tax:	Other comprehensive income (loss), net of tax:									Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on available-for-sale securities		296		(236)		232		(93)
Reclassification adjustment for losses on available-for-sale securities included in net income		—		332		—		332
Unrealized loss on interest rate hedge		(3,000)		(9,014)		(21,382)		(14,031)
Unrealized losses on available-for-sale securities										Unrealized losses on available-for-sale securities	(74)		(64)

Unrealized gain (loss) on interest rate hedge										Unrealized gain (loss) on interest rate hedge	3,108		(18,382)
Reclassification adjustment for losses on interest rate hedge included in net income	Reclassification adjustment for losses on interest rate hedge included in net income	2,130		397		3,228		755		Reclassification adjustment for losses on interest rate hedge included in net income	2,448		1,098
Foreign currency translation adjustments	Foreign currency translation adjustments	18,102		13,597		(23,856)		22,137		Foreign currency translation adjustments	6,466		(41,958)
Other comprehensive income (loss), net of tax	Other comprehensive income (loss), net of tax	17,528		5,076		(41,778)		9,100		Other comprehensive income (loss), net of tax	11,948		(59,306)
Comprehensive income (loss)	Comprehensive income (loss)	$	46,551	$	41,320	$	(1,183)	$	46,320	Comprehensive income (loss)	$	33,684	$	(47,734)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Table of Contents

CLEAN HARBORS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


		Six Months Ended							Three Months Ended
		June 30,							March 31,
		2020		2019			2021		2020
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income	Net income	$	40,595	$	37,220	Net income	$	21,736	$	11,572
Adjustments to reconcile net income to net cash from operating activities:	Adjustments to reconcile net income to net cash from operating activities:					Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	Depreciation and amortization	147,027		149,572		Depreciation and amortization	72,163		74,533

Allowance for doubtful accounts	Allowance for doubtful accounts	9,006		(2,233)		Allowance for doubtful accounts	2,446		4,700
Amortization of deferred financing costs and debt discount	Amortization of deferred financing costs and debt discount	1,787		2,000		Amortization of deferred financing costs and debt discount	900		891
Accretion of environmental liabilities	Accretion of environmental liabilities	5,327		5,134		Accretion of environmental liabilities	2,953		2,561
Changes in environmental liability estimates	Changes in environmental liability estimates	5,607		(748)		Changes in environmental liability estimates	275		3,470
Deferred income taxes	Deferred income taxes	—		(1,636)		Deferred income taxes	(39)		0
Other expense (income), net		2,865		(2,419)
Other expense, net						Other expense, net	1,228		2,365
Stock-based compensation	Stock-based compensation	6,077		9,643		Stock-based compensation	3,480		3,291

Loss on sale of businesses	Loss on sale of businesses	3,258		—		Loss on sale of businesses	0		3,074

Environmental expenditures	Environmental expenditures	(6,104)		(6,134)		Environmental expenditures	(3,011)		(3,435)
Changes in assets and liabilities, net of acquisitions:	Changes in assets and liabilities, net of acquisitions:					Changes in assets and liabilities, net of acquisitions:
Accounts receivable and unbilled accounts receivable	Accounts receivable and unbilled accounts receivable	67,540		(13,284)		Accounts receivable and unbilled accounts receivable	(9,703)		(24,960)
Inventories and supplies	Inventories and supplies	(9,024)		(4,129)		Inventories and supplies	(747)		(7,024)
Other current and non-current assets	Other current and non-current assets	(25,840)		(10,706)		Other current and non-current assets	(9,956)		8,714
Accounts payable	Accounts payable	(82,134)		(20,915)		Accounts payable	22,179		(5,169)
Other current and long-term liabilities	Other current and long-term liabilities	7,499		(2,895)		Other current and long-term liabilities	(904)		(40,902)
Net cash from operating activities	Net cash from operating activities	173,486		138,470		Net cash from operating activities	103,000		33,681
Cash flows used in investing activities:	Cash flows used in investing activities:					Cash flows used in investing activities:
Additions to property, plant and equipment	Additions to property, plant and equipment	(125,721)		(118,372)		Additions to property, plant and equipment	(41,913)		(82,767)
Proceeds from sale and disposal of fixed assets	Proceeds from sale and disposal of fixed assets	3,101		7,389		Proceeds from sale and disposal of fixed assets	1,204		2,150
Acquisitions, net of cash acquired	Acquisitions, net of cash acquired	(8,877)		(29,479)		Acquisitions, net of cash acquired	(22,918)		0
Proceeds from sale of businesses, net of transactional costs	Proceeds from sale of businesses, net of transactional costs	7,753		—		Proceeds from sale of businesses, net of transactional costs	0		7,856
Additions to intangible assets including costs to obtain or renew permits	Additions to intangible assets including costs to obtain or renew permits	(1,242)		(1,923)		Additions to intangible assets including costs to obtain or renew permits	(505)		(448)
Proceeds from sale of available-for-sale securities	Proceeds from sale of available-for-sale securities	28,851		26,518		Proceeds from sale of available-for-sale securities	20,375		12,180
Purchases of available-for-sale securities	Purchases of available-for-sale securities	(45,550)		(24,001)		Purchases of available-for-sale securities	(42,980)		(32,058)

Net cash used in investing activities	Net cash used in investing activities	(141,685)		(139,868)		Net cash used in investing activities	(86,737)		(93,087)
Cash flows from (used in) financing activities:
Cash flows (used in) from financing activities:						Cash flows (used in) from financing activities:
Change in uncashed checks	Change in uncashed checks	(1,689)		(3,514)		Change in uncashed checks	(6,662)		(1,775)
Tax payments related to withholdings on vested restricted stock	Tax payments related to withholdings on vested restricted stock	(3,395)		(4,980)		Tax payments related to withholdings on vested restricted stock	(3,719)		(2,224)
Repurchases of common stock	Repurchases of common stock	(17,341)		(11,272)		Repurchases of common stock	(26,546)		(17,341)

Deferred financing costs paid						Deferred financing costs paid	(137)		0

Payments on finance leases	Payments on finance leases	(1,790)		(259)		Payments on finance leases	(1,672)		(329)
Principal payments on debt	Principal payments on debt	(3,768)		(3,768)		Principal payments on debt	(1,884)		(1,884)

Borrowings from revolving credit facility						Borrowings from revolving credit facility	0		150,000

Borrowing from revolving credit facility		150,000		—
Payment on revolving credit facility		(75,000)		—
Net cash from (used in) financing activities		47,017		(23,793)
Net cash (used in) from financing activities						Net cash (used in) from financing activities	(40,620)		126,447
Effect of exchange rate change on cash	Effect of exchange rate change on cash	(3,443)		3,139		Effect of exchange rate change on cash	1,639		(6,827)
Increase (decrease) in cash and cash equivalents		75,375		(22,052)
(Decrease) increase in cash and cash equivalents						(Decrease) increase in cash and cash equivalents	(22,718)		60,214
Cash and cash equivalents, beginning of period	Cash and cash equivalents, beginning of period	371,991		226,507		Cash and cash equivalents, beginning of period	519,101		371,991
Cash and cash equivalents, end of period	Cash and cash equivalents, end of period	$	447,366	$	204,455	Cash and cash equivalents, end of period	$	496,383	$	432,205
Supplemental information:	Supplemental information:					Supplemental information:
Cash payments for interest and income taxes:	Cash payments for interest and income taxes:					Cash payments for interest and income taxes:
Interest paid	Interest paid	$	38,327	$	39,369	Interest paid	$	27,507	$	30,648
Income taxes paid		1,478		12,697
Income taxes paid, net of refunds						Income taxes paid, net of refunds	3,599		971
Non-cash investing activities:	Non-cash investing activities:					Non-cash investing activities:
Property, plant and equipment accrued	Property, plant and equipment accrued	7,421		14,103		Property, plant and equipment accrued	5,108		12,173
ROU assets obtained in exchange for operating lease liabilities	ROU assets obtained in exchange for operating lease liabilities	16,216		5,575		ROU assets obtained in exchange for operating lease liabilities	2,305		12,410
ROU assets obtained in exchange for finance lease liabilities	ROU assets obtained in exchange for finance lease liabilities	16,452		23,027		ROU assets obtained in exchange for finance lease liabilities	9,205		(856)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Table of Contents

CLEAN HARBORS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

Common Stock Accumulated
Other
Comprehensive Loss
Number
of
Shares
$0.01
Par
Value
Additional
Paid-in
Capital Accumulated
Earnings Total
Stockholders’
Equity
Balance at January 1, 2020 55,798 $ 558 $ 644,412 $ (210,051) $ 834,894 $ 1,269,813
Net income — — — — 11,572 11,572
Other comprehensive loss — — — (59,306) — (59,306)
Stock-based compensation — — 3,291 — — 3,291
Issuance of common stock for restricted share vesting, net of employee tax withholdings 59 1 (2,225) — — (2,224)
Repurchases of common stock (302) (3) (17,338) — — (17,341)
Balance at March 31, 2020 55,555 556 628,140 (269,357) 846,466 1,205,805
Net income — — — — 29,023 29,023
Other comprehensive income — — — 17,528 — 17,528
Stock-based compensation — — 2,786 — — 2,786
Issuance of common stock for restricted share vesting, net of employee tax withholdings 58 — (1,171) — — (1,171)
Balance at June 30, 2020 55,613 $ 556 $ 629,755 $ (251,829) $ 875,489 $ 1,253,971


	Common Stock						Accumulated Other Comprehensive Loss
	Number of Shares	$0.01 Par Value		Additional Paid-in Capital					Accumulated Earnings			Total Stockholders’ Equity
Balance at January 1, 2021	54,773	$	548		$	582,749	$	(211,477)		$	969,731		$	1,341,551
Net income	—	—			—		—			21,736			21,736
Other comprehensive income	—	—			—		11,948			—			11,948
Stock-based compensation	—	—			3,480		—			—			3,480
Issuance of common stock for restricted share vesting, net of employee tax withholdings	78	1			(3,720)		—			—			(3,719)
Repurchases of common stock	(300)	(3)			(26,543)		—			—			(26,546)

















Balance at March 31, 2021	54,551	$	546		$	555,966	$	(199,529)		$	991,467		$	1,348,450


		Common Stock							Accumulated Other Comprehensive Loss								Common Stock								Accumulated Other Comprehensive Loss
		Number of Shares	$0.01 Par Value		Additional Paid-in Capital						Accumulated Earnings			Total Stockholders’ Equity		Number of Shares			$0.01 Par Value	Additional Paid-in Capital				Accumulated Other Comprehensive Loss					Total Stockholders’ Equity
Balance at January 1, 2019		55,847	$	558	$	655,415	$	(223,371)	$	737,154		$	1,169,756
Balance at January 1, 2020														Balance at January 1, 2020	55,798		$	558		$	644,412	$	(210,051)				$	834,894			$	1,269,813

Net income	Net income	—	—		—		—		976			976		Net income	—		—			—		—			11,572				11,572
Other comprehensive income		—	—		—		4,024		—			4,024
Stock-based compensation		—	—		5,809		—		—			5,809
Issuance of common stock for restricted share vesting, net of employee tax withholdings		78	1		(2,277)		—		—			(2,276)
Repurchases of common stock		(97)	(1)		(6,323)		—		—			(6,324)
Balance at March 31, 2019		55,828	558		652,624		(219,347)		738,130			1,171,965

Net income		—	—		—		—		36,244			36,244
Other comprehensive income		—	—		—		5,076		—			5,076
Other comprehensive loss														Other comprehensive loss	—		—			—		(59,306)			—				(59,306)
Stock-based compensation	Stock-based compensation	—	—		3,834		—		—			3,834		Stock-based compensation	—		—			3,291		—			—				3,291
Issuance of common stock for restricted share vesting, net of employee tax withholdings	Issuance of common stock for restricted share vesting, net of employee tax withholdings	105	1		(2,705)		—		—			(2,704)		Issuance of common stock for restricted share vesting, net of employee tax withholdings	59		1			(2,225)		—			—				(2,224)
Repurchases of common stock	Repurchases of common stock	(74)	—		(4,948)		—		—			(4,948)		Repurchases of common stock	(302)		(3)			(17,338)		—			—				(17,341)

Balance at June 30, 2019		55,859	$	559	$	648,805	$	(214,271)	$	774,374		$	1,209,467

Balance at March 31, 2020														Balance at March 31, 2020	55,555		$	556		$	628,140	$	(269,357)		$	846,466			$	1,205,805

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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CLEAN HARBORS, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(1) BASIS OF PRESENTATION

The accompanying consolidated interim financial statements are unaudited and include the accounts of Clean Harbors, Inc. and its subsidiaries (collectively, “Clean Harbors,” the “Company” or "we") and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, in the opinion of management, include all adjustments which are of a normal recurring nature and are necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. Management has made estimates and assumptions affecting the amounts reported in the Company's consolidated interim financial statements and accompanying footnotes; actual results could differ from those estimates and judgments. The results for interim periods are not necessarily indicative of results for the entire year or any other interim periods. The financial statements presented herein should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2019.~~

~~A novel strain of coronavirus ("COVID-19") was first identified in December 2019, and subsequently declared a global pandemic by the World Health Organization on March 11,~~ 2020. As a result of the outbreak, many companies have experienced disruptions in their operations, workforce and markets served, including a significant reduction in the demand for petroleum-based products. The Company's businesses and operations began being adversely impacted by effects of COVID-19 in March of 2020 when circumstances surrounding and responses to the pandemic, including stay-at-home orders, began to materialize in North America. These disruptions had a significant impact on the Company's operating results during the three months ended June 30, 2020 and the Company expects that operations will continue to see an impact. The full extent of the ongoing COVID-19 outbreak and changes in demand for oil and the impact on the Company’s operations is uncertain. A prolonged disruption could have a material adverse impact on financial results and business operations of the Company.

In response to the COVID-19 outbreak, the Company has seen increased demand in emergency response services. In particular, the Company is addressing the safety of its customers and communities by providing contagion decontamination services. In conducting these services, employee safety is paramount and the Company has been able to provide appropriate personal protective equipment and support to those performing these services.

(2) SIGNIFICANT ACCOUNTING POLICIES

The Company's significant accounting policies are described in Note 2, "Significant Accounting Policies," in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. There have been no material changes in these policies or their application except for the changes described below.

~~Landfill Accounting~~Changes in Operating Segments

~~Landfill capacity -~~ During the first ~~six months~~quarter of ~~2020,~~2021, the Company ~~has taken actions~~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 ~~begin~~form the ~~closure of one~~Safety-Kleen Sustainability Solutions business. Under this structure, Safety-Kleen Sustainability Solutions will encompass both sides of the ~~Company's commercial landfill sites.~~spread the Company manages in its re-refinery business, and the Company expects this change to drive additional growth in its sustainable lubricant products and related services.

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. The ~~planned closure will nominally reduce~~Company expects this change to foster enhanced cross-selling opportunities within the environmental businesses and increase market presence with small quantity generators of hazardous waste.

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 ~~remaining highly probable airspace.~~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. See Note ~~9, "Closure~~17, "Segment Reporting" for more information. The amounts presented for the three months ended March 31, 2020 and ~~Post-Closure Liabilities," for additional information.~~

~~Government Grants~~

~~On March 27,~~any segment information presented as of December 31, 2020 have been recast to reflect the ~~Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law~~impact of such changes. In addition, certain intercompany transactions previously recorded in ~~response~~Corporate Items have been allocated to the ~~widespread economic impact~~segments. These reclassifications and adjustments had no effect on the consolidated statements of operations, consolidated statements of comprehensive income (loss), consolidated statements of cash flows or consolidated statements of stockholders' equity for any of the COVID-19 pandemic. On April 11, 2020, the Canadian federal government enacted the COVID-19 Emergency Response Act, No.2, which implemented the Canada Emergency Wage Subsidy ("CEWS"). During the quarter ended June 30, 2020, the Company recorded a benefit of $23.4 million as an offset to the related operating expenses in either cost of revenues or selling, general and administrative expenses for the eligible employee retention credit under the CARES Act and the subsidy under CEWS.periods presented.

(3) REVENUES

The Company generates revenues through its Environmental Services and Safety-Kleen Sustainability Solutions operating segments. The Company's Environmental Services operating segment generally has ~~the following three~~4 sources of ~~revenue:~~revenue and the Safety-Kleen Sustainability Solutions operating segment has 2 sources of revenue.

Technical Services—Technical Services contribute to the revenues of the Environmental Services operating segment. 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

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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

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over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. Revenues for treatment and disposal of waste are recognized upon completion of treatment, final disposition in a landfill or incineration, or when the waste is shipped to a third party for processing and disposal. The Company periodically enters into bundled arrangements for the collection and transportation and disposal of waste. For such arrangements, transportation and disposal are considered distinct performance obligations and the Company allocates revenue to each based on the relative standalone selling price (i.e., the estimated price that a customer would pay for the services on a standalone basis). Revenues from waste that is not yet completely processed and disposed and the related costs are deferred. The deferred revenues and costs are recognized when the related services are completed. The period between collection and transportation and the final processing and disposal ranges depending on the location of the customer, but generally is measured in days.

Field and Emergency Response Services—Field 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 municipalities and utilities, or other locations on a scheduled or emergency response basis. Services include confined space entry for tank cleaning, site decontamination, large remediation projects, demolition, spill cleanup on land and water, railcar cleaning, product recovery and transfer and vacuum services. Additional services include filtration and water treatment services. Response services for environmental, contamination or pandemic related emergencies include any scale from man-made disasters such as oil spills to natural disasters such as hurricanes. More recently demand has increased for projects involving contagion disinfection, decontamination and disposal services in response to the COVID-19 pandemic. Field and emergency response services are provided based on purchase orders or agreements with customers and include prices generally based upon daily, hourly or job rates for equipment, materials and personnel. The Company recognizes revenue for these services over time, as the customer receives and consumes the benefits of the service as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. The duration of such services can be over a number of hours, several days or even months for larger scale projects.

Industrial Services and Other—Industrial Services 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, ~~decoking and pigging,~~specialty cleaning services including chemical cleaning and high and ultra-high pressure water cleaning, ~~pipeline inspection and coating services, large tank and surface impoundment cleaning, oilfield transport,~~ daylighting, production services and upstream energy ~~services, such as exploration and drilling for industrial oil and gas customers.~~services. Services are provided based on purchase orders or agreements with the customer and include prices based upon daily, hourly or job rates for equipment, materials and personnel. The Company recognizes revenue for these services over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred.

~~The Company's Safety-Kleen operating segment generally has the following two sources of revenue:~~

Safety-Kleen Environmental Services—Safety-Kleen Environmental Services revenues ~~are generated~~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 ~~parts washer services,~~ containerized waste handling and disposal services, ~~oil collection~~parts washer services and vacuum services, ~~direct~~referred to collectively as the Safety-Kleen Environmental 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 ~~product sales.~~sales of bulk automotive fluids contribute to the Safety-Kleen Sustainability Solutions operating segment.

Generally, the service related revenue 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. ~~Other products~~Related collection and transportation revenues are recognized over time, as the customer receives and consumes the benefits of the services ~~include sale of complementary supply products including automotive fluids~~as they are being performed and ~~shop supplies and other environmental services.~~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. ~~Collection and transportation revenues are recognized over time, as the customer receives and consumes the benefits~~

Table of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred. Product revenue is recognized upon the transfer of control whereby control transfers when the products are delivered to the customer.Contents

Safety-Kleen Oil—~~Revenues from~~ Safety-Kleen Oil revenues 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

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further re-refined into lubricant base oils or sold directly into the marine diesel oil fuel market. Revenue for oil products is recognized at a point in time, upon the transfer of control. Control transfers when the products are delivered to the customer.

Disaggregation of Revenue

We disaggregate the Company's third party revenues by geographic location and source of revenue as we believe these categories depict how revenue and cash flows are affected by economic factors (in thousands):


		For the Three Months Ended June 30, 2020															For the Three Months Ended March 31, 2021
		Environmental Services		Safety-Kleen		Corporate		Total			Environmental Services		Safety-Kleen Sustainability Solutions		Corporate		Total
Primary Geographical Markets	Primary Geographical Markets									Primary Geographical Markets
United States	United States	$	403,451	$	228,338	$	(160)	$	631,629	United States	$	575,508	$	138,990	$	79	$	714,577
Canada	Canada	60,903		17,252		216		78,371		Canada	77,370		16,201		0		93,571
Total third-party revenues	Total third-party revenues	$	464,354	$	245,590	$	56	$	710,000	Total third-party revenues	$	652,878	$	155,191	$	79	$	808,148

Sources of Revenue ⁽¹⁾	Sources of Revenue ⁽¹⁾									Sources of Revenue ⁽¹⁾
Technical Services	Technical Services	$	241,929	$	—	$	—	$	241,929	Technical Services	$	272,040	$	0	$	0	$	272,040
Field and Emergency Response Services	Field and Emergency Response Services	127,353		—		—		127,353		Field and Emergency Response Services	105,168		0		0		105,168
Industrial Services and Other	Industrial Services and Other	95,072		—		56		95,128		Industrial Services and Other	119,810		0		79		119,889
Safety-Kleen Environmental Services	Safety-Kleen Environmental Services	—		194,872		—		194,872		Safety-Kleen Environmental Services	155,860		38,978		0		194,838
Safety-Kleen Oil	Safety-Kleen Oil	—		50,718		—		50,718		Safety-Kleen Oil	0		116,213		0		116,213
Total third-party revenues	Total third-party revenues	$	464,354	$	245,590	$	56	$	710,000	Total third-party revenues	$	652,878	$	155,191	$	79	$	808,148

For the Three Months Ended June 30, 2019
Environmental Services Safety-Kleen Corporate Total
Primary Geographical Markets
United States $ 431,749 $ 316,688 $ 202 $ 748,639
Canada 94,545 25,494 — 120,039
Total third-party revenues $ 526,294 $ 342,182 $ 202 $ 868,678
Sources of Revenue ⁽¹⁾
Technical Services $ 275,908 $ — $ — $ 275,908
Field and Emergency Response Services 86,722 — — 86,722
Industrial Services and Other ⁽²⁾
163,664 — 202 163,866
Safety-Kleen Environmental Services — 216,434 — 216,434
Safety-Kleen Oil — 125,748 — 125,748
Total third-party revenues $ 526,294 $ 342,182 $ 202 $ 868,678

For the Six Months Ended June 30, 2020
Environmental Services Safety-Kleen Corporate Total
Primary Geographical Markets
United States $ 843,465 $ 534,871 $ (462) $ 1,377,874
Canada 148,993 41,088 608 190,689
Total third-party revenues $ 992,458 $ 575,959 $ 146 $ 1,568,563
Sources of Revenue ⁽¹⁾
Technical Services $ 517,202 $ — $ — $ 517,202
Field and Emergency Response Services 233,265 — — 233,265
Industrial Services and Other 241,991 — 146 242,137
Safety-Kleen Environmental Services — 409,353 — 409,353
Safety-Kleen Oil — 166,606 — 166,606
Total third-party revenues $ 992,458 $ 575,959 $ 146 $ 1,568,563

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For the Six Months Ended June 30, 2019
Environmental Services Safety-Kleen Corporate Total
Primary Geographical Markets
United States $ 819,918 $ 603,262 $ 796 $ 1,423,976
Canada 180,074 45,467 — 225,541
Total third-party revenues $ 999,992 $ 648,729 $ 796 $ 1,649,517
Sources of Revenue⁽¹⁾
Technical Services $ 527,827 $ — $ — $ 527,827
Field and Emergency Response Services 158,348 — — 158,348
Industrial Services and Other⁽²⁾
313,817 — 796 314,613
Safety-Kleen Environmental Services — 423,517 — 423,517
Safety-Kleen Oil — 225,212 — 225,212
Total third-party revenues $ 999,992 $ 648,729 $ 796 $ 1,649,517

~~________________~~

(1) All revenue except oil and oil product sales within Safety-Kleen Oil and product sales within Safety-Kleen Environmental Services, which include various automotive related fluids, shop supplies and direct blended oil sales, are recognized over time. Safety-Kleen Oil and Safety-Kleen Environmental Services product sales are recognized at a point in time.

(2) Third-party revenues of $27,653 and $202 for the three months ended June 30, 2019, respectively, and third-party revenues of $61,708 and $796 for the six months ended June 30, 2019, respectively, previously reported as Oil, Gas and Lodging Services and Other, are now disclosed within Industrial Services and Other based on relative materiality to the business.


	For the Three Months Ended March 31, 2020
	Environmental Services		Safety-Kleen Sustainability Solutions		Corporate		Total
Primary Geographical Markets
United States	$	607,110	$	139,437	$	(302)	$	746,245
Canada	97,926		14,000		392		112,318
Total third-party revenues	$	705,036	$	153,437	$	90	$	858,563

Sources of Revenue
Technical Services	$	275,273	$	0	$	0	$	275,273
Field and Emergency Response Services	105,912		0		0		105,912
Industrial Services and Other	146,919		0		90		147,009

Safety-Kleen Environmental Services	176,932		37,549		0		214,481
Safety-Kleen Oil	0		115,888		0		115,888
Total third-party revenues	$	705,036	$	153,437	$	90	$	858,563

Contract Balances


(in thousands)	(in thousands)	June 30, 2020		December 31, 2019		(in thousands)	March 31, 2021		December 31, 2020
Receivables	Receivables	$	572,373	$	644,738	Receivables	$	620,184	$	611,534
Contract assets (unbilled receivables)	Contract assets (unbilled receivables)	44,761		56,326		Contract assets (unbilled receivables)	55,239		55,681
Contract liabilities (deferred revenue)	Contract liabilities (deferred revenue)	61,902		73,370		Contract liabilities (deferred revenue)	83,165		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

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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.

(4) BUSINESS COMBINATIONS

2021 Acquisition

On March 27, 2021, the Company acquired a privately-owned business for $22.9 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 $15.9 million was recognized.

2020 Acquisition

On April 17, 2020, the Company acquired a privately-owned business for ~~$8.9~~$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, a preliminary goodwill amount of ~~$1.5 million was recognized.~~

~~2019 Acquisitions~~

On May 31, 2019, the Company acquired a privately-owned business for $14.8 million cash consideration. The acquired company expands the environmental services and hazardous materials management services of the Company and is included in the Environmental Services segment. In connection with this acquisition, a goodwill amount of $7.4 million was recognized.

On March 1, 2019, the Company acquired certain assets of a privately-owned business for $10.4 million cash consideration. The acquired business complements the Safety-Kleen segment's core service offerings, such as used motor oil collection, parts washers, oil filter recycling and vacuum services. In connection with this acquisition, a goodwill amount of $5.2$1.4 million was recognized.

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(5) INVENTORIES AND SUPPLIES

Inventories and supplies consisted of the following (in thousands):


		June 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
Oil and oil related products	Oil and oil related products	$	77,117	$	75,408	Oil and oil related products	$	76,106	$	76,209
Supplies and drums		118,086		115,128
Supplies						Supplies	120,814		120,007
Solvent and solutions	Solvent and solutions	10,553		9,973		Solvent and solutions	9,145		8,812

Other	Other	14,052		14,235		Other	13,434		15,470
Total inventories and supplies	Total inventories and supplies	$	219,808	$	214,744	Total inventories and supplies	$	219,499	$	220,498

Supplies ~~and drums consist~~consists primarily of ~~drums and containers used in providing the Company's products and services,~~ critical spare parts to support the Company's incinerator and re-refinery operations, ~~and~~ personal protective ~~equipment.~~equipment and other general supplies used in our normal day-to-day operations. Other inventories consisted primarily of parts washer components, cleaning fluids, absorbents and automotive fluids, such as windshield washer fluid and antifreeze.

(6) PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following (in thousands):


		June 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
Land	Land	$	139,859	$	131,023	Land	$	145,662	$	139,776
Asset retirement costs (non-landfill)	Asset retirement costs (non-landfill)	16,102		15,924		Asset retirement costs (non-landfill)	17,747		16,407
Landfill assets	Landfill assets	182,287		182,276		Landfill assets	193,009		191,687
Buildings and improvements ⁽¹⁾	Buildings and improvements ⁽¹⁾	499,701		499,159		Buildings and improvements (1)	514,711		509,804
Camp equipment	Camp equipment	153,980		158,277		Camp equipment	158,281		159,021
Vehicles ⁽²⁾	Vehicles ⁽²⁾	809,790		785,056		Vehicles (2)	855,842		844,026
Equipment⁽³⁾	Equipment⁽³⁾	1,776,574		1,779,366		Equipment (3)	1,812,858		1,807,235
Furniture and fixtures	Furniture and fixtures	6,860		6,054		Furniture and fixtures	6,992		7,082
Construction in progress	Construction in progress	21,040		36,679		Construction in progress	39,943		24,378
		3,606,193		3,593,814			3,745,045		3,699,416
Less - accumulated depreciation and amortization	Less - accumulated depreciation and amortization	2,052,385		2,005,663		Less - accumulated depreciation and amortization	2,217,101		2,174,118
Total property, plant and equipment, net	Total property, plant and equipment, net	$	1,553,808	$	1,588,151	Total property, plant and equipment, net	$	1,527,944	$	1,525,298

________________

(1) Balances inclusive of gross right-of-use ("ROU") assets classified as finance leases of ~~$8.0~~$8.9 million ~~and $31.0 million, respectively.~~in both periods.

(2) Balances inclusive of gross ROU assets classified as finance leases of ~~$37.6~~$56.4 million and ~~$2.4~~$47.2 million, respectively.

(3) ~~June 30, 2020 balance~~Balances inclusive of gross ROU assets classified as finance leases of ~~$3.3~~$9.4 million. and $9.3 million, respectively.

Depreciation expense, inclusive of landfill and finance lease amortization, was ~~$63.7~~$64.6 million and ~~$129.0~~$65.4 million for the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and March 31, 2020, ~~respectively. Depreciation expense, inclusive of landfill and finance lease amortization, was $65.5 million and $131.4 million for the three and six months ended June 30, 2019,~~ respectively.

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(7) GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in goodwill by segment for the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 were as follows (in thousands):

Environmental Services Safety-Kleen Totals
Balance at January 1, 2020 $ 212,531 $ 312,482 $ 525,013
Increase from current period acquisition — 1,487 1,487
Measurement period adjustments from prior period acquisitions 23 — 23
Decrease from disposition of businesses (674) — (674)
Foreign currency translation (1,263) (1,432) (2,695)
Balance at June 30, 2020 $ 210,617 $ 312,537 $ 523,154


	Environmental Services		Safety-Kleen Sustainability Solutions		Totals
Balance at January 1, 2021	$	401,918	$	125,105	$	527,023
Increase from current period acquisition	0		15,875		15,875



Foreign currency translation	520		187		707
Balance at March 31, 2021	$	402,438	$	141,167	$	543,605

The ~~Company assesses goodwill for impairment on an annual basis as of December 31 or at an interim date when events or changes~~balances in the ~~business environment ("triggering events") would more likely than not reduce~~table above have been recast to reflect the ~~fair value~~Company's segment change in the first quarter of 2021. As discussed in Note 17, "Segment Reporting," as a ~~reporting unit below its carrying value. During the period ended June 30, 2020,~~result of operational and managerial changes, the Company ~~considered~~changed its operating segments in accordance with ASC 280, Segment Reporting. In addition, the ~~effects of COVID-19 and evolving changes in demand and pricing for oil, but~~Company concluded that, ~~there were no triggering events requiring an~~for purposes of reviewing for potential goodwill impairment, ~~assessment. This conclusion was based on a qualitative analysis incorporating~~it now has 3 reporting units. The Environmental Services operating segment has two reporting units consisting of (i) Environmental Sales and Service which includes the ~~significant excess fair value that previously existed in each~~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 washer and vacuum services and (ii) ~~assessing~~Environmental Facilities, unchanged from prior year. The Safety-Kleen Sustainability Solutions operating segment is a single reporting unit which includes the ~~current~~legacy Safety-Kleen Oil reporting unit and ~~long-term performance~~the remaining operations of the ~~Company given the expectation that these negative effects on the operations and cash flows of each~~legacy Safety-Kleen Environmental Services reporting unit ~~arising from COVID-19 related disruptions will be short-lived.~~

~~The Company continues to evaluate the impact~~primarily consisting of ~~macroeconomic conditions including, but not limited to, the impact of the COVID-19 pandemic on the Company, customers~~collection services for waste oil, anti-freeze and ~~the greater economy~~used oil filters as well as the ~~impact on trends~~sale of bulk blended re-refined oil ~~demand. If these macroeconomic conditions are protracted or result in significant changes in demand for our products~~ and ~~services,~~other automotive related finished fluid products. The Company allocated goodwill to the newly identified reporting units using a relative fair value approach. In addition, the Company completed an assessment of any potential goodwill impairment ~~might be identified~~for all reporting units immediately prior and subsequent to the ~~amount might be material.~~reallocation and determined that no impairment existed.

As of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, the Company's intangible assets consisted of the following (in thousands):


		June 30, 2020										December 31, 2019									March 31, 2021						December 31, 2020
		Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net			Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Permits	Permits	$	182,689	$	90,360	$	92,329	$	184,235	$	87,228	$	97,007	Permits	$	184,675	$	97,061	$	87,614	$	183,766	$	95,033	$	88,733
Customer and supplier relationships	Customer and supplier relationships	388,341		207,604		180,737		401,696		207,884		193,812		Customer and supplier relationships	372,860		207,929		164,931		382,083		211,895		170,188
Other intangible assets	Other intangible assets	37,480		32,561		4,919		38,331		33,018		5,313		Other intangible assets	39,334		35,107		4,227		39,287		34,744		4,543
Total amortizable permits and other intangible assets	Total amortizable permits and other intangible assets	608,510		330,525		277,985		624,262		328,130		296,132		Total amortizable permits and other intangible assets	596,869		340,097		256,772		605,136		341,672		263,464
Trademarks and trade names	Trademarks and trade names	122,463		—		122,463		122,934		—		122,934		Trademarks and trade names	123,281		—		123,281		123,156		—		123,156
Total permits and other intangible assets	Total permits and other intangible assets	$	730,973	$	330,525	$	400,448	$	747,196	$	328,130	$	419,066	Total permits and other intangible assets	$	720,150	$	340,097	$	380,053	$	728,292	$	341,672	$	386,620

Amortization expense of permits, customer and supplier relationships and other intangible assets was ~~$8.8~~$7.6 million and ~~$18.0~~$9.2 million in the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and March 31, 2020, ~~respectively. Amortization expense of permits and other intangible assets was $8.7 million and $18.2 million in the three and six months ended June 30, 2019,~~ respectively.

The expected amortization of the net carrying amount of finite-lived intangible assets at ~~June 30, 2020~~March 31, 2021 was as follows (in thousands):


Years Ending December 31,	Years Ending December 31,	Expected Amortization		Years Ending December 31,	Expected Amortization
2020 (six months)		$	16,038
2021		29,858
2021 (nine months)				2021 (nine months)	$	22,674
2022	2022	29,594		2022	30,013
2023	2023	25,391		2023	25,681
2024	2024	23,919		2024	24,183
2025				2025	23,205
Thereafter	Thereafter	153,185		Thereafter	131,016
		$	277,985		$	256,772

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(8) ACCRUED EXPENSES

Accrued expenses consisted of the following (in thousands):


		June 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
Accrued insurance	Accrued insurance	$	72,081	$	74,376	Accrued insurance	$	76,153	$	77,514
Accrued interest	Accrued interest	19,589		21,222		Accrued interest	9,286		19,697
Accrued compensation and benefits	Accrued compensation and benefits	48,427		72,473		Accrued compensation and benefits	78,928		81,437
Accrued income, real estate, sales and other taxes	Accrued income, real estate, sales and other taxes	54,667		35,749		Accrued income, real estate, sales and other taxes	30,804		25,843
Interest rate swap liability	Interest rate swap liability	38,993		20,840		Interest rate swap liability	28,074		33,630
Accrued other	Accrued other	55,657		51,880		Accrued other	60,967		57,702
		$	289,414	$	276,540		$	284,212	$	295,823

(9) CLOSURE AND POST-CLOSURE LIABILITIES

The changes to closure and post-closure liabilities (also referred to as “asset retirement obligations”) from January 1, ~~2020~~2021 through ~~June 30, 2020~~March 31, 2021 were as follows (in thousands):


		Landfill Retirement Liability		Non-Landfill Retirement Liability		Total			Landfill Retirement Liability		Non-Landfill Retirement Liability		Total
Balance at January 1, 2020		$	39,401	$	36,250	$	75,651
Balance at January 1, 2021								Balance at January 1, 2021	$	48,412	$	39,514	$	87,926
Liabilities assumed in acquisitions	Liabilities assumed in acquisitions	—		265		265		Liabilities assumed in acquisitions	0		451		451

New asset retirement obligations	New asset retirement obligations	1,080		—		1,080		New asset retirement obligations	646		0		646

Accretion	Accretion	1,521		1,655		3,176		Accretion	955		908		1,863
Changes in estimates recorded to statement of operations		4,503		(36)		4,467
Changes in estimates recorded to balance sheet		129		(53)		76
Changes in estimates recorded to consolidated statement of operations								Changes in estimates recorded to consolidated statement of operations	0		29		29
Changes in estimates recorded to consolidated balance sheet								Changes in estimates recorded to consolidated balance sheet	0		1,045		1,045
Expenditures	Expenditures	(1,254)		(491)		(1,745)		Expenditures	(751)		(178)		(929)
Currency translation and other	Currency translation and other	(249)		(80)		(329)		Currency translation and other	65		9		74
Balance at June 30, 2020		$	45,131	$	37,510	$	82,641
Balance at March 31, 2021								Balance at March 31, 2021	$	49,327	$	41,778	$	91,105

During the first six months of 2020, the Company has taken actions to begin the closure of one of its commercial landfill sites resulting in a $4.5 million increase to the related closure and post-closure liability. The remaining 10 landfill facilities remain active as of June 30, 2020. In the ~~six~~three months ended ~~June 30, 2020, other than this charge,~~March 31, 2021, there were no significant charges (benefits) resulting from changes in estimates for closure and post-closure liabilities.

New asset retirement obligations incurred during the first ~~six~~three months of ~~2020~~2021 were discounted at the credit-adjusted risk-free rate of ~~5.60%~~4.84%.

(10) REMEDIAL LIABILITIES

The changes to remedial liabilities from January 1, ~~2020~~2021 through ~~June 30, 2020~~March 31, 2021 were as follows (in thousands):


		Remedial Liabilities for Landfill Sites		Remedial Liabilities for Inactive Sites		Remedial Liabilities (Including Superfund) for Non-Landfill Operations		Total			Remedial Liabilities for Landfill Sites		Remedial Liabilities for Inactive Sites		Remedial Liabilities (Including Superfund) for Non-Landfill Operations		Total
Balance at January 1, 2020		$	1,851	$	61,991	$	50,331	$	114,173
Balance at January 1, 2021										Balance at January 1, 2021	$	1,865	$	63,060	$	49,888	$	114,813

Accretion	Accretion	44		1,265		842		2,151		Accretion	22		654		414		1,090
Changes in estimates recorded to statement of operations		(14)		(330)		1,484		1,140
Changes in estimates recorded to consolidated statement of operations										Changes in estimates recorded to consolidated statement of operations	17		180		49		246
Expenditures	Expenditures	(30)		(2,171)		(2,158)		(4,359)		Expenditures	(12)		(950)		(1,120)		(2,082)
Currency translation and other	Currency translation and other	—		(923)		301		(622)		Currency translation and other	0		(812)		993		181
Balance at June 30, 2020		$	1,851	$	59,832	$	50,800	$	112,483
Balance at March 31, 2021										Balance at March 31, 2021	$	1,892	$	62,132	$	50,224	$	114,248

In the ~~six~~three months ended June 30, 2020, the Company increased its remedial liabilities for a Superfund site by $1.8 million due to a change in the estimate of the related liabilities. This change in estimate was triggered by the receipt of updated regulatory approval requirements for remediation. Other than this charge,March 31, 2021, there were no significant charges (benefits) resulting from changes in estimates for remedial liabilities.

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(11) FINANCING ARRANGEMENTS

The following table is a summary of the Company’s financing arrangements (in thousands):


Current Obligations:		June 30, 2020		December 31, 2019
Current Debt:						Current Debt:	March 31, 2021		December 31, 2020
Secured senior term loans ("Term Loans")	Secured senior term loans ("Term Loans")	$	7,535	$	7,535	Secured senior term loans ("Term Loans")	$	7,535	$	7,535

Long-Term Obligations:
Long-Term Debt:						Long-Term Debt:
Secured senior Term Loans due June 30, 2024	Secured senior Term Loans due June 30, 2024	$	723,394	$	727,162	Secured senior Term Loans due June 30, 2024	$	717,742	$	719,626
Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes")	Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes")	545,000		545,000		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")	Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes")	300,000		300,000		Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes")	300,000		300,000
Revolving credit facility		75,000		—
Long-term obligations, at par		$	1,643,394	$	1,572,162
Long-term debt, at par						Long-term debt, at par	$	1,562,742	$	1,564,626
Unamortized debt issuance costs and premium, net	Unamortized debt issuance costs and premium, net	(16,523)		(18,046)		Unamortized debt issuance costs and premium, net	(14,225)		(14,985)
Long-term obligations, at carrying value		$	1,626,871	$	1,554,116
Long-term debt, at carrying value						Long-term debt, at carrying value	$	1,548,517	$	1,549,641

Financing Activities

As of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, the estimated fair value of the Company’s outstanding long-term ~~obligations,~~debt, including the current portion, was ~~$1.7 billion and~~ $1.6 ~~billion, respectively.~~billion. The Company’s estimates of fair value of its long-term ~~obligations,~~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 quotations or alternative pricing sources with reasonable levels of price transparency for similar assets and liabilities.

The Company maintains a $400.0 million revolving credit facility ~~expiring November 1, 2021. On~~under which the Company had no outstanding loan balances as of March 31, 2020, the Company drew down $150.0 million on the revolving credit facility in response to the uncertainty surrounding the COVID-19 global pandemic. The Company repaid $75.0 million of that borrowing on June 29, 2020,2021 and ~~the remaining $75.0 million was repaid on July 28,~~December 31, 2020. As of ~~June 30, 2020,~~March 31, 2021, the Company had ~~$135.3~~$270.2 million available to borrow under the revolving credit facility and outstanding letters of credit were ~~$142.5 million. At December 31, 2019, $229.2 million was available to borrow and outstanding letters of credit were $146.9~~$121.3 million.

Cash Flow Hedges

The Company’s strategy to hedge against fluctuations in variable interest rates involves entering into interest rate derivative agreements.

Although the interest rate on the Term Loans is variable, the Company has effectively fixed the interest rate on $350.0 million aggregate principal amount of the Term Loans outstanding by entering into interest rate swap agreements in 2018 with a notional amount of $350.0 million. Under the terms of the interest rate swap agreements, the Company receives interest based on the one-month LIBOR index and pays interest at a weighted average annual interest rate of 2.92%, resulting in an effective annual interest rate of 4.67%. The interest rate swap agreements terminate in 2024.

The Company recognizes derivative instruments as either assets or liabilities on the balance sheet at fair value. No ineffectiveness has been identified on these swaps and, therefore, all unrealized changes in fair value are recorded in accumulated other comprehensive loss. Amounts are reclassified from accumulated other comprehensive loss into interest expense on the statement of operations in the same period or periods during which the hedged transaction affects earnings.

As of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, the Company has recorded ~~an interest rate swap~~a derivative liability with a fair value of ~~$39.0~~$28.1 million and ~~$20.8~~$33.6 million, respectively, within accrued expenses in connection with these cash flow hedges.

The fair value of the interest rate swaps is calculated using discounted cash flow valuation methodologies based upon the one-month LIBOR yield curves that are observable at commonly quoted intervals for the full term of the interest rate swaps and as such is considered a Level 2 measure according to the fair value hierarchy.

(12) INCOME TAXES

The Company records a tax provision or benefit on an interim basis using an estimated annual effective tax rate. This rate is applied to the current period ordinary income or loss to determine the income tax provision or benefit allocated to the interim period. Losses from jurisdictions for which no benefit can be recognized and the income tax effects of unusual or infrequent items are excluded from the estimated annual effective tax rate and are recognized in the impacted interim period. The estimated annual effective tax rate may be significantly impacted by projected earnings mix by tax jurisdiction. Adjustments to the estimated annual effective income tax rate are recognized in the period when such estimates are revised.

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The Company’s effective tax rate for the three ~~and six~~ months ended ~~June 30, 2020~~March 31, 2021 was ~~29.0% and 34.7%~~31.5%, compared to ~~30.7% and 37.2%~~45.6%, respectively, for the comparable ~~periods~~period in ~~2019.~~2020.

As of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, the Company had recorded ~~$6.1~~$5.0 million and ~~$6.4~~$5.5 million, respectively, of liabilities for unrecognized tax benefits and ~~$1.9~~$2.2 million and ~~$1.7~~$2.1 million, respectively, of interest.

The Internal Revenue Service ("IRS") completed its examination of the Company’s tax years 2014-2016 and submitted its audit report to the Joint Committee on Taxation ("Joint Committee"). In July 2020, we received notification from the IRS that the Joint Committee has completed its review and taken no exception. No material adjustments were made to the previously filed returns as a result of this process.

The Company believes that within the next 12 months uncertain tax positions may be resolved and statutes of limitations will expire which could result in a decrease in the gross amount of unrecognized tax benefits of $1.0 million.

(13) EARNINGS PER SHARE

The following are computations of basic and diluted earnings per share (in thousands, except per share amounts):


		Three Months Ended						Six Months Ended					Three Months Ended
		June 30,						June 30,					March 31,
		2020		2019		2020		2019			2021		2020
Numerator for basic and diluted earnings per share:	Numerator for basic and diluted earnings per share:									Numerator for basic and diluted earnings per share:
Net income	Net income	$	29,023	$	36,244	$	40,595	$	37,220	Net income	$	21,736	$	11,572

Denominator:	Denominator:									Denominator:
Basic shares outstanding	Basic shares outstanding	55,590		55,875		55,673		55,861		Basic shares outstanding	54,723		55,757
Dilutive effect of outstanding stock awards	Dilutive effect of outstanding stock awards	158		191		209		140		Dilutive effect of outstanding stock awards	320		298
Dilutive shares outstanding	Dilutive shares outstanding	55,748		56,066		55,882		56,001		Dilutive shares outstanding	55,043		56,055

Basic earnings per share:	Basic earnings per share:	$	0.52	$	0.65	$	0.73	$	0.67	Basic earnings per share:	$	0.40	$	0.21

Diluted earnings per share:	Diluted earnings per share:	$	0.52	$	0.65	$	0.73	$	0.66	Diluted earnings per share:	$	0.39	$	0.21

For the three months ended ~~June 30,~~March 31, 2021 and March 31, 2020, ~~and June 30, 2019,~~ all then outstanding performance awards and restricted stock awards were included in the calculation of diluted earnings per share except for ~~96,018~~34,219 and ~~75,759,~~121,726, respectively, of performance stock awards for which the performance criteria were not attained at the ~~time~~reporting dates and ~~149,460~~6,000 and ~~4,623, respectively, of restricted stock awards and performance awards which were excluded as their inclusion would have an antidilutive effect.~~

For the six months ended June 30, 2020 and June 30, 2019, all then outstanding performance awards and restricted stock awards were included in the calculation of diluted earnings per share except for 96,018 and 75,759, respectively, of performance stock awards for which the performance criteria were not attained at the time and 14,716 and 78,892,9,925, respectively, of restricted stock awards which were excluded as their inclusion would have an antidilutive effect.

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(14) ACCUMULATED OTHER COMPREHENSIVE LOSS

The changes in accumulated other comprehensive loss by component and related tax ~~effects~~impacts for the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 were as follows (in thousands):

Foreign Currency Translation Unrealized Gains (Losses) on Available-For-Sale Securities Unrealized Loss on Interest Rate Hedge Unfunded Pension Liability Total
Balance at January 1, 2020 $ (187,795) $ 143 $ (20,839) $ (1,560) $ (210,051)
Other comprehensive (loss) income before reclassifications and tax impacts (25,205) 294 (21,382) — (46,293)
Amounts reclassified out of accumulated other comprehensive loss — — 3,228 — 3,228
Tax gain (loss) 1,349 (62) — — 1,287
Other comprehensive (loss) income (23,856) 232 (18,154) — (41,778)
Balance at June 30, 2020 $ (211,651) $ 375 $ (38,993) $ (1,560) $ (251,829)


	Foreign Currency Translation		Unrealized Gains (Losses) on Available-For-Sale Securities		Unrealized (Loss) Gain on Interest Rate Hedge		Unrealized Loss on Unfunded Pension Liability		Total
Balance at January 1, 2021	$	(176,234)	$	135	$	(33,629)	$	(1,749)	$	(211,477)
Other comprehensive income (loss) before reclassifications	6,466		(94)		3,108		0		9,480
Amounts reclassified out of accumulated other comprehensive loss	0		0		2,448		0		2,448
Tax benefit	0		20		0		0		20
Other comprehensive income (loss)	6,466		(74)		5,556		0		11,948
Balance at March 31, 2021	$	(169,768)	$	61	$	(28,073)	$	(1,749)	$	(199,529)

The amount reclassified out of accumulated other comprehensive loss into the consolidated statement of operations, with presentation location, during the three ~~and six~~ months ended ~~June 30, 2020~~March 31, 2021 was as follows (in thousands):

Other Comprehensive Income (Loss) Components For the Three Months Ended June 30, 2020 For the Six Months Ended June 30, 2020 Location
Unrealized loss on interest rate hedge $ (2,130) $ (3,228) Interest expense, net of interest income

Other Comprehensive Income (Loss) Components

For the Three Months Ended March 31, 2021

Location

Unrealized loss on interest rate hedge

(2,448)

Interest expense, net of interest income

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(15) STOCK-BASED COMPENSATION

On June 3, 2020, our shareholders approved the Clean Harbor's Inc. 2020 Stock Incentive Plan (the "2020 Plan"), which became effective on that date. The 2020 Plan provides for future awards of up to 2.5 million shares of the Company’s common stock (subject to certain anti-dilution adjustments) in the form of stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards. The 2020 Plan is administered by the Compensation Committee of the Company’s Board of Directors. The Company's previous stock incentive plan (the "2010 Plan") expired on May 10, 2020. In connection with the adoption of the 2020 Plan, no further awards will be made under the 2010 Plan.

Total stock-based compensation cost charged to selling, general and administrative expenses for the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and March 31, 2020was ~~$2.8~~$3.5 million and ~~$6.1 million, respectively. Total stock-based compensation cost charged to selling, general and administrative expenses for the three and six months ended June 30, 2019 was $3.8 million and $9.6~~$3.3 million, respectively. The total income tax benefit recognized in the consolidated statements of operations from stock-based compensation expense for the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and March 31, 2020 was $0.4 million and $1.2 million, respectively. The total income tax benefit recognized in the consolidated statements of operations from stock-based compensation expense for the three and six months ended June 30, 2019 was $0.7 million and ~~$1.8~~$0.8 million, respectively.

Restricted Stock Awards

The following table summarizes information about restricted stock awards for the ~~six~~three months ended ~~June 30, 2020:~~March 31, 2021:


Restricted Stock	Restricted Stock	Number of Shares	Weighted Average Grant-Date Fair Value		Restricted Stock	Number of Shares	Weighted Average Grant-Date Fair Value
Balance at January 1, 2020		522,597	$	59.57
Balance at January 1, 2021					Balance at January 1, 2021	493,879	$	59.74
Granted	Granted	52,078	59.07		Granted	6,000	87.22
Vested	Vested	(147,197)	57.33		Vested	(49,578)	56.29
Forfeited	Forfeited	(31,640)	58.64		Forfeited	(25,205)	60.58
Balance at June 30, 2020		395,838	60.42
Balance at March 31, 2021					Balance at March 31, 2021	425,096	60.48

As of ~~June 30, 2020,~~March 31, 2021, there was ~~$16.5~~$16.6 million of total unrecognized compensation cost arising from restricted stock awards. This cost is expected to be recognized over a weighted average period of ~~2.3~~2.7 years. The total fair value of restricted stock vested during the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and March 31, 2020 was ~~$4.4~~$4.0 million and ~~$9.7~~$5.3 million, respectively. ~~The total fair value of restricted stock vested during the three and six months ended June 30, 2019 was $7.9 million and $11.1 million, respectively.~~

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Performance Stock Awards

Performance stock awards are subject to performance criteria established by the Compensation Committee of the Company's Board of Directors prior to or at the date of grant. The vesting of the performance stock awards is based on achieving targets ~~typically~~currently based on revenue, Adjusted EBITDA ~~margin,~~Margin, Adjusted Free Cash Flow and Total Recordable Incident Rate. In addition, performance stock awards include continued service conditions.

The following table summarizes information about performance stock awards for the ~~six~~three months ended ~~June 30, 2020:~~March 31, 2021:


Performance Stock	Performance Stock	Number of Shares	Weighted Average Grant-Date Fair Value		Performance Stock	Number of Shares	Weighted Average Grant-Date Fair Value
Balance at January 1, 2020		204,553	$	64.78
Granted		—	—
Balance at January 1, 2021					Balance at January 1, 2021	254,449	$	61.75

Vested	Vested	(23,222)	55.75		Vested	(71,815)	62.27
Forfeited	Forfeited	(11,976)	65.71		Forfeited	(18,395)	61.75
Balance at June 30, 2020		169,355	65.95
Balance at March 31, 2021					Balance at March 31, 2021	164,239	61.53

As of ~~June 30, 2020,~~March 31, 2021, there was ~~$1.6~~$2.9 million of total unrecognized compensation cost arising from unvested performance stock awards deemed probable of vesting. ~~NaN performance awards vested during the three months ended June 30, 2020 and June 30, 2019.~~ The total fair value of performance awards vested during the ~~six~~three months ended ~~June 30,~~March 31, 2021 and March 31, 2020 ~~and June 30, 2019~~ was ~~$1.3~~$6.4 million and ~~$2.9~~$1.3 million, respectively.

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(16) 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 governmental authorities and other interested parties. The issues involved in such proceedings generally relate to alleged violations of existing permits and licenses or alleged responsibility under federal or state Superfund laws to remediate contamination at properties owned either by the Company or by other parties (“third-party sites”) to which either the Company or the prior owners of certain of the Company’s facilities shipped waste.

At ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, the Company had recorded reserves of ~~$23.5~~$30.2 million and ~~$26.0~~$29.8 million, respectively, in the Company's financial statements for actual or probable liabilities related to the legal and administrative proceedings in which the Company was then involved, the principal of which are described below. In management's opinion, it is not reasonably possible that the potential liability beyond what has been recorded, if any, that may result from these actions, either individually or collectively, will have a material effect on our financial position, results of operations or cash flows. The Company periodically adjusts the aggregate amount of these reserves when actual or probable liabilities are paid or otherwise discharged, new claims arise or additional relevant information about existing or probable claims becomes available. As of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, the ~~$23.5~~$30.2 million and ~~$26.0~~$29.8 million, respectively, of reserves consisted of (i) ~~$17.7~~$23.9 million and ~~$18.4~~$24 million, respectively, related to pending legal or administrative proceedings, including Superfund liabilities, which were included in remedial liabilities on the consolidated balance sheets, and (ii) ~~$5.8~~$6.3 million and ~~$7.6~~$5.8 million, respectively, primarily related to federal, state and provincial enforcement actions, which were included in accrued expenses on the consolidated balance sheets.

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As of ~~June 30, 2020,~~March 31, 2021, the principal legal and administrative proceedings in which the Company was involved, or which had been terminated during ~~2020,~~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 2 permits to dump organic liquids into lagoons on the property to a company unrelated to the Mercier Subsidiary. In 1999, Ville Mercier and 3 neighboring municipalities filed separate legal proceedings against the Mercier Subsidiary and the Government of Quebec. In 2012, the municipalities amended their existing statement of claim to seek $2.9 million (CAD) in general damages and $10.0 million (CAD) in punitive damages, plus interest and costs, as well as injunctive relief. Both the Government of Quebec and the Company have filed summary judgment motions against the municipalities. The parties are attempting to negotiate a resolution and hearings on the motions have been delayed. In September 2007, the Quebec Minister of Sustainable Development, Environment and Parks issued a notice pursuant to Section 115.1 of the Environment Quality Act, superseding notices issued in 1992, which are the subject of the pending litigation. The more recent notice notifies the Mercier Subsidiary that, if the Mercier Subsidiary does not take certain remedial measures at the site, the Minister intends to undertake those measures at the site and claim direct and indirect costs related to such measures. The Company has accrued for costs expected to be incurred relative to the resolution of this matter and believes this matter will not have future material effect on its financial position, results of operations or cash flows.

Safety-Kleen Legal Proceedings. On December 28, 2012, the Company acquired Safety-Kleen, Inc. ("Safety-Kleen") and thereby became subject to the legal proceedings in which Safety-Kleen was a party on that date. In addition to certain Superfund proceedings in which Safety-Kleen has been named as a potentially responsible party as described below under “Superfund Proceedings,” the principal such legal proceedings involving Safety-Kleen which were outstanding as of ~~June 30, 2020~~March 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 6769 proceedings (excluding cases which have been settled but not formally dismissed) as of ~~June 30, 2020,~~March 31, 2021, wherein persons claim personal injury resulting from the use of Safety-Kleen's parts washer equipment or cleaning products. These proceedings typically involve allegations that the solvent used in Safety-Kleen's parts washer equipment contains contaminants and/or that Safety-Kleen's recycling process does not effectively remove the contaminants that become entrained in the solvent during their use. In addition, certain claimants assert that Safety-Kleen

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failed to adequately warn the product user of potential risks, including a historic failure to warn that solvent contains trace amounts of toxic or hazardous substances such as benzene.

The Company maintains insurance that it believes will provide coverage for these product liability claims (over amounts accrued for self-insured retentions and deductibles in certain limited cases), except for punitive damages to the extent not insurable under state law or excluded from insurance coverage. The Company also believes that these claims lack merit and has historically vigorously defended, and intends to continue to vigorously defend, itself and the safety of its products against all these claims. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. Consequently, the Company is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters as of ~~June 30, 2020.~~March 31, 2021. From January 1, ~~2020~~2021 to ~~June 30, 2020, 3~~March 31, 2021, 5 product liability claims were settled or dismissed. Due to the nature of these claims and the related insurance, the Company did not incur any expense as insurance provided coverage in full for all such claims. Safety-Kleen may be named in similar, additional lawsuits in the future, including claims for which insurance coverage may not be available.

Superfund Proceedings

The Company has been notified that either the Company ~~(which, since December 28, 2012, includes Safety-Kleen)~~ or the prior owners of certain of the Company's facilities for which the Company may have certain indemnification obligations have been identified as potentially responsible parties ("PRPs") or potential PRPs in connection with 130 sites which are subject to or are proposed to become subject to proceedings under federal or state Superfund laws. Of the 130 Superfund related sites, 5 (including the BR Facility described below) involve facilities that are now owned or leased by the Company and 125 involve third-party sites to which either the Company or the prior owners of certain of the Company’s facilities shipped wastes. Of the 125 third-party sites, 31 are now settled, 7815 are currently requiring expenditures on remediation and 1679 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

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made in calculating the estimated cost and timing of remediation, the identification of other PRPs and their respective capability and obligation to contribute to remediation efforts and the existence and legal standing of indemnification agreements, if any, with prior owners, which may either benefit the Company or subject the Company to potential indemnification obligations. The Company believes its potential liability could exceed ~~$100,000~~$1.0 million at 103 of the ~~125 third-party~~130 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 U.S. Environmental Protection Agency ("EPA") issued a special notice letter to the Company related to the Devil's Swamp Lake Site ("Devil's Swamp") in East Baton Rouge Parish, Louisiana. Devil's Swamp includes a lake located downstream of an outfall ditch where wastewater and storm water have been discharged, and Devil's Swamp is proposed to be included on the National Priorities List due to the presence of Contaminants of Concern ("COC") cited by the EPA. These COCs include substances of the kind found in wastewater and storm water discharged from the BR Facility in past operations. The EPA originally requested COC generators to submit a good faith offer to conduct a remedial investigation feasibility study directed towards the eventual remediation of the site. In 2018, the Company completed performing corrective actions at the BR Facility under an order issued by the Louisiana Department of Environmental Quality and has also completed conducting the remedial investigation ~~and~~ feasibility study for Devil's Swamp under anthe order issued by the ~~EPA. The Company cannot presently estimate~~EPA at which point the ~~potential additional liability~~feasibility study, with several remedial alternatives, was submitted to the EPA for review. During 2020, the ~~Devil's Swamp cleanup until~~EPA signed a ~~final remedy is~~Record of Decision which defined the remediation alternative selected and approved by the EPA ~~with issuance~~and in return, the Company increased the estimated remedial liability for this inactive site by $3.3 million. Changes in the natural landscape and/or new information identified during the remediation could impact this estimate, however are not expected to have a future material effect on the Company's financial position, liquidity or results of ~~a Record of Decision.~~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 6 additional of these third-party sites, Safety-Kleen has a similar indemnification agreement with McKesson Corporation. These agreements indemnify the Company (which now includes Safety-Kleen) with respect to any liability at the 17 sites for waste disposed prior to the Company's (or Safety-Kleen's) acquisition of the former subsidiaries of Waste Management and McKesson which had shipped wastes to those sites. Accordingly, Waste Management or McKesson are paying all costs of defending those subsidiaries in those 17 cases, including legal fees and settlement costs. However, there can be no guarantee that the Company's ultimate liabilities for those sites will not exceed the amount recorded or that indemnities applicable to any of these sites will be available to pay all or a portion of related costs. Except for the indemnification agreements which the

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Company holds from ChemWaste, McKesson and two other entities, the Company does not have an indemnity agreement with respect to any of the 125 third-party sites discussed above.

Federal, State and Provincial Enforcement Actions

From time to time, the Company pays fines or penalties in regulatory proceedings relating primarily to waste treatment, storage or disposal facilities. As of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, there were ~~11 and 12~~0 proceedings ~~respectively,~~ for which the Company reasonably believes that the sanctions could equal or exceed ~~$100,000.~~$1.0 million. The Company believes that the fines or other penalties in these or any of the other regulatory proceedings will not, individually or in the aggregate, ~~not~~ have a material effect on its financial condition, results of operations or cash flows.

(17) 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 the Changes in Operating Segments section of Note 2, "Significant Accounting Policies" 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 the information would align with the new operating structure of the business. Due to these changes the Company reassessed its operating segment conclusions in the first quarter of 2021 which resulted in a change in the operating segments. The Company ~~is managed and reports as 2 operating segments~~; ~~(i)~~consolidated the core services of Safety-Kleen Environmental Services into its Environmental Services segment, eliminated its Safety-Kleen segment and ~~(ii)~~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. Transactions between the segments are accounted for at the Company’s best estimate based on similar transactions with outside customers. The intersegment revenues are shown net. The operations not managed through the Company’s operating segments described above are recorded as “Corporate Items.”

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The following table reconciles third-party revenues to direct revenues for the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and March 31, 2020 ~~and June 30, 2019~~ (in thousands):

For the Three Months Ended June 30, 2020 For the Three Months Ended June 30, 2019
Third-party revenues Intersegment revenues, net Corporate Items, net Direct revenues Third-party revenues Intersegment revenues, net Corporate Items, net Direct revenues
Environmental Services $ 464,354 $ 31,171 $ 1,389 $ 496,914 $ 526,294 $ 36,206 $ 576 $ 563,076
Safety-Kleen 245,590 (31,171) 137 214,556 342,182 (36,206) 8 305,984
Corporate Items 56 — (1,526) (1,470) 202 — (584) (382)
Total $ 710,000 $ — $ — $ 710,000 $ 868,678 $ — $ — $ 868,678


		For the Six Months Ended June 30, 2020														For the Six Months Ended June 30, 2019													For the Three Months Ended March 31, 2021			For the Three Months Ended March 31, 2020
		Third-party revenues		Intersegment revenues, net		Corporate Items, net		Direct revenues		Third-party revenues		Intersegment revenues, net		Corporate Items, net		Direct revenues			Third-party revenues		Intersegment revenues, net		Direct revenues		Third-party revenues		Intersegment revenues, net			Direct revenues
Environmental Services	Environmental Services	$	992,458	$	68,334	$	2,484	$	1,063,276	$	999,992	$	70,281	$	1,825	$	1,072,098	Environmental Services	$	652,878	$	1,724	$	654,602	$	705,036	$	156		$	705,192
Safety-Kleen		575,959		(68,334)		143		507,768		648,729		(70,281)		13		578,461
Safety-Kleen Sustainability Solutions																		Safety-Kleen Sustainability Solutions	155,191		(1,724)		153,467		153,437		(156)			153,281
Corporate Items	Corporate Items	146		—		(2,627)		(2,481)		796		—		(1,838)		(1,042)		Corporate Items	79		—		79		90		—			90
Total	Total	$	1,568,563	$	—	$	—	$	1,568,563	$	1,649,517	$	—	$	—	$	1,649,517	Total	$	808,148	$	—	$	808,148	$	858,563	$	—		$	858,563

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, provision for income taxes and excludes other gains, losses or non-cash charges not deemed representative of fundamental segment results and other expense, ~~(income),~~ net. ~~Transactions between~~Beginning in the ~~segments~~first quarter of 2021, we revised our calculation of reported Adjusted EBITDA to add stock-based compensation, a non-cash item, to other charges which are ~~accounted~~added back to net income determined in accordance with generally accepted accounting principles ("GAAP") for atpurposes of calculating Adjusted EBITDA. The amount added back each period matches the ~~Company’s best estimate based~~line item for stock-based compensation as recorded on ~~similar transactions with outside customers.~~the consolidated statements of cash flows. All relevant prior period Adjusted EBITDA amounts were recast to provide comparative information.

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The following table presents Adjusted EBITDA information used by management by reported segment (in thousands):

For the Three Months Ended For the Six Months Ended
June 30, June 30,
2020 2019 2020 2019
Adjusted EBITDA:
Environmental Services $ 138,083 $ 117,868 $ 246,997 $ 207,378
Safety-Kleen 46,589 79,459 107,737 134,252
Corporate Items (49,192) (47,502) (96,664) (90,142)
Total 135,480 149,825 258,070 251,488
Reconciliation to Consolidated Statements of Operations:
Accretion of environmental liabilities 2,766 2,560 5,327 5,134
Depreciation and amortization 72,494 74,217 147,027 149,572
Income from operations 60,220 73,048 105,716 96,782
Other expense (income), net 500 564 2,865 (2,419)
Loss on sale of businesses 184 — 3,258 —
Interest expense, net of interest income 18,654 20,215 37,441 39,979
Income before provision for income taxes $ 40,882 $ 52,269 $ 62,152 $ 59,222

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	For the Three Months Ended
	March 31,
		2021		2020
Adjusted EBITDA:
Environmental Services		$	140,254	$	145,858
Safety-Kleen Sustainability Solutions		31,632		24,204
Corporate Items		(42,435)		(44,181)
Total		129,451		125,881
Reconciliation to Consolidated Statements of Operations:
Accretion of environmental liabilities		2,953		2,561
Stock-based compensation		3,480		3,291
Depreciation and amortization		72,163		74,533
Income from operations		50,855		45,496
Other expense, net		1,228		2,365

Loss on sale of businesses		0		3,074
Interest expense, net of interest income		17,918		18,787
Income before provision for income taxes		$	31,709	$	21,270

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


		June 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
Property, plant and equipment, net:	Property, plant and equipment, net:					Property, plant and equipment, net:
Environmental Services	Environmental Services	$	904,626	$	939,352	Environmental Services	$	1,056,053	$	1,068,910
Safety-Kleen		558,597		555,310
Safety-Kleen Sustainability Solutions						Safety-Kleen Sustainability Solutions	367,689		366,160
Corporate Items	Corporate Items	90,585		93,489		Corporate Items	104,202		90,228
Total property, plant and equipment, net	Total property, plant and equipment, net	$	1,553,808	$	1,588,151	Total property, plant and equipment, net	$	1,527,944	$	1,525,298

Goodwill and Permits and other intangibles, net:	Goodwill and Permits and other intangibles, net:					Goodwill and Permits and other intangibles, net:
Environmental Services	Environmental Services					Environmental Services
Goodwill	Goodwill	$	210,617	$	212,531	Goodwill	$	402,438	$	401,918
Permits and other intangibles, net	Permits and other intangibles, net	83,465		89,722		Permits and other intangibles, net	224,614		228,237
Total Environmental Services	Total Environmental Services	294,082		302,253		Total Environmental Services	627,052		630,155

Safety-Kleen
Safety-Kleen Sustainability Solutions						Safety-Kleen Sustainability Solutions
Goodwill	Goodwill	$	312,537	$	312,482	Goodwill	$	141,167	$	125,105
Permits and other intangibles, net	Permits and other intangibles, net	316,983		329,344		Permits and other intangibles, net	155,439		158,383
Total Safety-Kleen		629,520		641,826
Total Safety-Kleen Sustainability Solutions						Total Safety-Kleen Sustainability Solutions	296,606		283,488

Total	Total	$	923,602	$	944,079	Total	$	923,658	$	913,643

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


		June 30, 2020		December 31, 2019			March 31, 2021		December 31, 2020
United States	United States	$	3,461,132	$	3,413,254	United States	$	3,472,053	$	3,447,811
Canada and other foreign	Canada and other foreign	616,497		695,650		Canada and other foreign	680,486		683,709
Total	Total	$	4,077,629	$	4,108,904	Total	$	4,152,539	$	4,131,520

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

In addition to historical information, this Quarterly Report on Form 10-Q contains forward-looking statements, which are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "seeks," "should," "estimates," "projects," "may," "likely" or similar expressions. Such statements may include, but are not limited to, statements about future financial and operating results, the Company's plans, objectives, expectations and intentions and other statements that are not historical facts. Forward-looking statements are neither historical facts nor assurances of future performance. Such statements are based upon the beliefs and expectations of Clean Harbors' management as of this date only and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, without limitation, the risks and uncertainties surrounding Coronavirus ("COVID-19") and the related impact on our business, and those items identified as "Risk Factors,” in this report under Item 1A and in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February ~~26, 2020,~~24, 2021, and in other documents we file from time to time with the SEC. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date hereof. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Clean Harbors undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its filings with the SEC, which may be viewed in the "Investors" section of the Clean Harbors website.

Overview

We are North America’s leading provider of environmental and industrial services supporting our customers in finding environmentally responsible solutions to further their sustainability goals in today's world. Everywhere industry meets the environment, we strive to provide eco-friendly products and services that protect and restore North America's natural environment. We believe we operate, in the aggregate, the largest number of hazardous waste incinerators, landfills and treatment, storage and disposal facilities ("TSDFs") in North America. We serve a diverse customer base, including Fortune 500 companies, across the chemical, energy, manufacturing and additional markets, as well as numerous government agencies. These customers rely on us to deliver a broad range of services

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including but not limited to end-to-end hazardous waste management, emergency response, industrial cleaning and maintenance and recycling services. We are also the largest re-refiner and recycler of used oil in North America and the largest provider of parts washer and related environmental services to commercial, industrial and automotive customers in North America.

During the first quarter of 2021, we reorganized our 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 we manage in our re-refinery business, and we expect this change to drive additional growth in our sustainable lubricant products and related services.

Concurrently with this change, we 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. We expect this change to foster enhanced cross-selling opportunities within the environmental businesses and increase market presence with small quantity generators of hazardous waste.

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 was changed to conform to this new operating structure of the business. As a result, we reevaluated the identification of our operating segments and concluded that, starting in the first quarter of 2021, Environmental Services and Safety-Kleen Sustainability Solutions are our operating segments and reportable segments,with the operations not managed through the operating segments described above continuing to be recorded as Corporate Items. The amounts presented for the three months ended March 31, 2020 have been recast to reflect the impact of such changes.

Performance of our segments is evaluated on several factors of which the primary financial measure is Adjusted EBITDA. Beginning in the first quarter of 2021, we revised our calculation of reported Adjusted EBITDA ~~as described more fully below.~~ to add back stock-based compensation, a non-cash item, to other charges which are added back to net income determined in accordance with generally accepted accounting principles ("GAAP"). See Adjusted EBITDA section below for additional details regarding this change and our consideration of this metric. Prior period amounts have been recast to conform to this presentation.

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The following is a discussion of how management evaluates its segments in regards to other factors including key performance indicators that management uses to assess the segments’ results, as well as certain macroeconomic trends and influences that impact each reportable segment:

•Environmental Services - Environmental Services segment results are predicated upon the demand by our customers for waste services, ~~directly attributable to~~ waste volumes generated by ~~them~~such services and project work for which waste handling and/or disposal is required. In managing the business and evaluating performance, management tracks the volumes and mix of waste handled and disposed of through our owned incinerators and landfills, as well as utilization of such incinerators, labor and billable hours and equipment among other key metrics. Levels of activity and ultimate performance associated with this segment can be impacted by several factors including overall U.S. GDP and U.S. industrial production, weather conditions, efficiency of our operations, technology, changing regulations, competition, market pricing of our services and the management of our related operating costs. Environmental Services results are also impacted by the demand for planned and unplanned industrial related cleaning and maintenance services at customer sites, environmental cleanup services on a scheduled or emergency basis, including response to national events such as major chemical spills, natural disasters, or other events where immediate and specialized services are required. As a result of the ~~recent~~ COVID-19 pandemic, the business has also seen increased demand for response services relative to contagion disinfection, decontamination and disposal.

• With the addition of the Safety-Kleen - ~~Safety-Kleen segment~~core service offerings, including containerized waste disposal, parts washer and vacuum services, the Environmental Services results are impacted by an array of core service and product offerings that serve to attract small quantity waste producers as customers and integrate them into the Clean Harbors waste network. Core service offerings include parts washer services, containerized waste services, vacuum services, used motor oil collection and contract blending and packaging services. Key performance indicators trackedfurther driven by the ~~Company relative to these services include the number~~volumes of ~~parts washer services performed and pricing and volume of used motor oil and~~ waste ~~collected. Results~~collected from these ~~services are primarily driven by~~customers, the overall number of parts washers placed at customer sites and ~~volumes of waste collected, as well as~~ the demand for and frequency of other offered services. ~~These factors~~In managing the business and evaluating performance, management tracks the volumes and mix of waste handled and disposed of or recycled, generally through our owned facilities, the utilization rates of our incinerators, equipment and workforce, including billable hours, and number of parts washer services performed, among other key metrics. Levels of activity and ultimate performance associated with this segment can be impacted by several factors including overall U.S. GDP, U.S. industrial production, economic conditions in the ~~marketplace, especially in~~automotive and manufacturing markets, weather conditions, efficiency of our operations, technology, changing regulations, competition, market pricing of our services and the ~~automotive~~management of our related ~~area. In addition to its core~~operating costs.

•Safety-Kleen Sustainability Solutions - Safety-Kleen Sustainability Solutions segment results are impacted by our customers' demand for high-quality, environmentally responsible recycled oil products and their demand for our related service offerings and products. Safety-Kleen Sustainability Solutions offers high quality recycled base and blended oil products to end users including fleet customers, distributors and manufacturers of oil products. ~~Other~~Segment results are impacted by overall demand as well as product mix as it relates to these oil products. Segment results are also predicated on the demand for the Safety-Kleen Sustainability Solutions other product and service offerings ~~include~~including collection services for used oil, used oil filters and other automotive fluids. These fluid collections are used as feedstock in our oil re-refining to make our base and blended oil products and our recycled automotive related ~~fluids~~fluid products or are integrated into the Clean Harbors' recycling and ~~shop supplies. Relative to its oil related products,~~disposal network. In operating the business and evaluating performance, management tracks the ~~Company's~~ volumes and relative percentages of base and blended oil sales along with various pricing metrics associated with the commodity driven ~~marketplace. The segment’s results are significantly~~margin. Management also tracks the volumes and pricing of used oil and automotive fluid collections. Levels of activity and ultimate performance associated with this segment can be impacted by ~~overall market pricing~~economic conditions in the automotive services and ~~product mix associated with base~~manufacturing markets, efficiency of our operations, technology, weather conditions, changing regulations, competition and ~~blended oil products and, more specifically,~~ the ~~market prices~~management of ~~Group II base oils.~~our related operating costs. Costs incurred in connection with the collection of used oil and other raw materials associated with the segment’s oil related products can also be volatile. ~~Our OilPlus~~The overall market price of oil and regulations that change the possible usage of used oil, including the International Maritime Organization's 2020 regulation ("IMO 2020")and other regulations related to the burning of used motor oil as a fuel, both impact the premium the segment can charge for used oil collections.^® ~~closed loop initiative, which results~~

Highlights

Total revenues for the three months ended March 31, 2021 were $808.1 million, compared with $858.6 million for the three months ended March 31, 2020. In the three months ended March 31, 2021, our Environmental Services segment direct revenues decreased 7.2% from the comparable period in 2020, primarily due to lower demand for our industrial and field services and Safety-Kleen core environmental service offerings as customers in this part of our business were most negatively impacted by the COVID-19 conditions. In the three months ended March 31, 2021, our Safety-Kleen Sustainability Solutions segment direct revenues remained relatively consistent with the comparable period in 2020, with increased revenues from used motor oil collections being offset by lower blended oil sales revenues. The fluctuation of the Canadian dollar positively impacted our consolidated revenues by $5.9 million in the ~~sale of our renewable oil products directly to our end customers, may also be impacted by changes in customer demand for high-quality, environmentally responsible recycled oil.~~three months ended March 31, 2021.

~~Impact of COVID-19~~

~~Corporate Response~~

In response to the COVID-19 pandemic, the Company has created a dedicated crisis response team to proactively monitor and respond to Company and customer operations, implement plans to execute on opportunities of COVID-19 related decontamination services and enhance health and safety measures for all our employees.

Health and safety is our #1 priority. Our commitment to ensuring the health and safety of our employees, particularly those performing COVID-19 decontamination services for our customers is a pillar of our overall corporate culture. During the pandemic, we have been able to successfully supply our employees with appropriate personal protective equipment ("PPE") for use in servicing our customersDespite lower revenues, profits expanded in the ~~field~~first quarter of 2021 as we reported income from operations for the three months ended March 31, 2021 of $50.9 million compared with $45.5 million in the three months ended March 31, 2020, and ~~working at our operational and administrative facilities. To support~~net income for the ~~safety~~three months ended March 31, 2021 of ~~all~~$21.7 million compared with net income of our employees and operations, early precautionary measures were implemented including actively monitoring and reporting employee illness, acquiring and maintaining adequate levels of PPE inventory, suspending non-essential travel, limiting$11.6 million in the number of employees attending meetings and reducing the number of people at our locations at any one time. In an effort to contain COVID-19, governments have enacted various measures, including orders to close non-essential businesses and personal and commercial travel restrictions. Operations at our facilities complied with government ordered shutdowns and reopening plans. The COVID-19three months ended March 31, 2020.

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~~pandemic remains a rapidly evolving situation. We are monitoring changes in the various locations in which we operate and adapting our protocols accordingly.~~

~~Impact on Our Financial Statements and Business Operations~~

The COVID-19 pandemic has resulted in, and is likely to continue to result in, significant economic disruption. The Company's financial results for the three and six months ended June 30, 2020 were significantly impacted by the COVID-19 pandemic. In the latter half of March 2020 and throughout the second quarter, we were measurably impacted by an overall slowdown in economic activity which included closures at some of our customer sites and rising general uncertainty about economic activity into the future. During this time, we have also seen an increase in demand from several customers for disinfecting, decontamination and disposal related emergency response services specifically in response to COVID-19. During the quarter, the Company completed more than 5,500 projects responding specifically to the risk of COVID-19 and amounting to approximately $50.0 million of revenue. These increased levels of emergency response work, however, did not overcome the overall levels of service work lost due to the impacts of the COVID-19 pandemic.

The Company expects to continue to experience the impacts of COVID-19 throughout the remainder of 2020. In our Environmental Services segment, continued lower activity levels and shutdowns of customers' operations could decrease the level of our services that are required and the quantities of commercial and industrial waste disposed of throughout our network of facilities. Lower demand for oil and overall price declines in the global oil market, resulting from COVID-19 impacts, could impact the level of environmental services we provide to our customers in that market. We expect the increase in emergency response work for COVID-19 related decontamination services to continue, however these additional services are not expected to fully offset the negative impact of COVID-19 on our Environmental Services segment.

We expect that the services provided by our Safety-Kleen segment will continue to be significantly impacted by less automotive related travel and any ongoing customer shutdowns reducing demand for Safety-Kleen core services and products. We have observed declining demand in the primary sectors impacting this business including the overall automotive sector, as consumer activity decelerated across the United States and Canada. Lower oil related demand and price declines in the global oil market, exacerbated by COVID-19 impacts, are also expected to reduce revenues generated by the business in 2020. In order to respond to the impact on the Safety-Kleen business and in particular the reduced availability of used motor oils which are utilized as feedstock in our re-refining processes and reduced demand for base and blended oil products, in April 2020, we temporarily shuttered nearly half of the total production capacity of our oil re-refineries. However, in July 2020, in response to more positive trends in oil demand, certain facilities were brought back online, increasing the current production to approximately 70% of total production capacity.

The Company considered the impact of COVID-19 on the assumptions and estimates used in the preparation of the financial statements and did not identify any significant changes in estimates. Specifically, management concluded that there had not been any triggering events requiring further assessment of asset impairments. Management also assessed the extent to which the current macroeconomic events brought about by COVID-19 and significant declines in oil demand may have impacted the valuation of expected credit losses on accounts receivable and certain inventory items or resulted in modifications to any significant contracts. Ultimately the results of these assessments did not have a material impact on the Company's results as of June 30, 2020.

In regards to liquidity and capital resources, as of June 30, 2020, the Company had $506.7 million in cash and marketable securities and $135.3 million of remaining borrowing availability under the revolving credit facility. On July 28, 2020, the Company repaid the remaining $75.0 million outstanding balance on the revolving credit facility. Other than $7.5 million of annual payments on the Company's secured senior term loans, there are no debt maturities until June 2024, when those term loans are due. To maintain a strong liquidity position through 2020 and beyond, the Company is actively considering, planning and executing cost reduction initiatives, significantly reducing 2020 capital expenditures from previously forecasted amounts and considering all aspects of eligible government programs.

~~Impact of Government Programs~~

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law in response to the widespread economic impact of the COVID-19 pandemic. On April 11, 2020, the Canadian federal government enacted the COVID-19 Emergency Response Act, No.2, which implemented the Canada Emergency Wage Subsidy ("CEWS"). During the quarter ended June 30, 2020, management considered and analyzed the Company's eligibility under such government programs. Most significantly, the Company applied for certain employee retention credits under the CARES Act and the wage

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~~subsidy under the CEWS. The table below summarizes the benefit of these government programs recorded in the statement of operations for the periods ending June 30, 2020 (in thousands):~~

Environmental Services Safety-Kleen Corporate Items Total
Cost of revenues $ 8,997 $ 4,864 $ 415 $ 14,276
Selling, general and administrative expenses 4,267 3,407 1,449 9,123
Total $ 13,264 $ 8,271 $ 1,864 $ 23,399

The Company received $3.3 million of the total subsidy under the CEWS prior to June 30, 2020 and the remaining portion was received in early July 2020. The Company expects to receive the CARES Act funds in the third quarter of 2020. Although the Company did implement certain cost reduction plans associated with labor in the second quarter, these government programs have allowed our workforce to remain stable during the temporary slowdown in activity.

The CARES Act and earlier issued guidance by the Internal Revenue Service allowed us to defer the payment of certain payroll and income tax payments. In total, we deferred operating cash payments of $25.0 million during the six months ended June 30, 2020, comprised of $11.9 million of payroll taxes which will be repaid in 2021 and 2022 and $13.1 million of income taxes which were paid in July 2020.

~~Highlights~~

Total revenues for the three and six months ended June 30, 2020 were $710.0 million and $1,568.6 million, compared with $868.7 million and $1,649.5 million for the three and six months ended June 30, 2019. In the three and six months ended June 30, 2020, our Environmental Services segment direct revenues decreased 11.8% and 0.8% from the comparable periods in 2019, primarily due to significantly lower demand for our industrial and technical related services resulting from lower overall economic activity which also caused some of our customers to delay the timing of industrial turnarounds, environmental related projects and other waste disposal services in response to the COVID-19 pandemic. This decrease was partially offset by increased emergency response services in the wake of the COVID-19 pandemic. In the three and six months ended June 30, 2020, our Safety-Kleen segment direct revenues decreased 29.9% and 12.2% from the comparable periods in 2019, predominantly due to lower demand and prices across the Safety-Kleen portfolio of products and core services also resulting from overall lower economic activity, customer shutdowns and lower oil demand stemming from the COVID-19 pandemic. Increased revenues from used motor oil collections partially offset these decreases for the Safety-Kleen segment. The fluctuation of the Canadian dollar negatively impacted our consolidated revenues by $3.1 million and $4.3 million in the three and six months ended June 30, 2020.

We reported income from operations for the three and six months ended June 30, 2020 of $60.2 million and $105.7 million compared with $73.0 million and $96.8 million in the three and six months ended June 30, 2019. We reported net income for the three and six months ended June 30, 2020 of $29.0 million and $40.6 million compared with net income of $36.2 million and $37.2 million in the three and six months ended June 30, 2019.

Adjusted EBITDA, which is the primary financial measure by which our segments are evaluated, ~~decreased 9.6%~~increased 2.8% to ~~$135.5~~$129.5 million in the three months ended ~~June 30, 2020~~March 31, 2021 from ~~$149.8~~$125.9 million in the three months ended ~~June 30, 2019~~March 31, 2020. This improved profitability was driven by the mix of revenue generating services and ~~increased 2.6% to $258.1 million in the six months ended June 30, 2020 from $251.5 million in the six months ended June 30, 2019.~~products, as well as strong cost management. Additional information, including a reconciliation of Adjusted EBITDA to net income, appears below under the heading "Adjusted EBITDA."

Net cash from operating activities for the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 was ~~$173.5~~$103.0 million, an increase of ~~$35.0~~$69.3 million from the comparable period in ~~2019.~~2020. Adjusted free cash flow, which management uses to measure our financial strength and ability to generate cash, was an inflow of ~~$71.9~~$62.3 million in the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, compared to an ~~inflow~~outflow of ~~$27.5~~$26.2 million in the comparable period of ~~2019.~~2020. These increased levels of adjusted cash flows are the result of lower capital expenditures and improved working capital management. Additional information, including a reconciliation of adjusted free cash flow to net cash from operating activities, appears below under the heading "Adjusted Free Cash Flow."

Impact of COVID-19

The Company continues to experience the economic disruption from the COVID-19 pandemic as described more fully in the "Impact of COVID-19" section of our Annual Report on Form 10-K for the year ended December 31, 2020. During the first quarter of 2021, we continued to see incremental improvements in the demand for our products and services concurrent with the lifting of travel and other government restrictions and the ongoing national and state vaccination efforts. We also saw significant continued demand for disinfecting, decontamination and disposal related emergency response services specifically in response to COVID-19. In the first quarter of 2021, we completed over 3,000 projects responding specifically to the risk of COVID-19, amounting to $28.2 million of direct revenues during the three months ended March 31, 2021. Although uncertain as to the prevalence of such services throughout the remainder of 2021, we expect slowing demand for these COVID-19 response services as vaccine levels increase.

Impact of Government Programs

In 2020, the Governments of Canada and the United States announced the Canada Emergency Wage Subsidy ("CEWS") and the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") in response to the widespread economic impact of the COVID-19 pandemic (collectively referred to as "Government Programs"). In 2021, management has continued to consider and analyze the Company's eligibility under such Government Programs. During 2021 the Company recognized certain employee wage subsidies under the CEWS and, to a lesser extent, employee retention credits under the CARES Act. The table below summarizes the benefit of the Government Programs recorded in the statement of operations for the period ended March 31, 2021 (in thousands):


	Three Months Ended
	March 31, 2021
		Environmental Services		Safety-Kleen Sustainability Solutions		Corporate Items		Total
Cost of revenues		$	3,767	$	469	$	24	$	4,260
Selling, general and administrative expenses		747		326		80		1,153
Total		$	4,514	$	795	$	104	$	5,413

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Segment Performance

The primary financial measure by which we evaluate the performance of our segments is Adjusted EBITDA. The following table sets forth certain financial information associated with our results of operations for the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and March 31, 2020 ~~and June 30, 2019~~ (in thousands, except percentages):


		Summary of Operations																						Summary of Operations
		For the Three Months Ended													For the Six Months Ended								For the Three Months Ended
		June 30, 2020		June 30, 2019		$ Change		% Change	June 30, 2020		June 30, 2019		$ Change		% Change		March 31, 2021		March 31, 2020		$ Change		% Change

Direct Revenues⁽¹⁾:	Direct Revenues⁽¹⁾:															Direct Revenues(1):
Environmental Services	Environmental Services	$	496,914	$	563,076	$	(66,162)	(11.8)%	$	1,063,276	$	1,072,098	$	(8,822)	(0.8)%	Environmental Services	$	654,602	$	705,192	$	(50,590)	(7.2)%
Safety-Kleen		214,556		305,984		(91,428)		(29.9)	507,768		578,461		(70,693)		(12.2)
Safety-Kleen Sustainability Solutions																Safety-Kleen Sustainability Solutions	153,467		153,281		186		0.1
Corporate Items	Corporate Items	(1,470)		(382)		(1,088)		N/M	(2,481)		(1,042)		(1,439)		N/M	Corporate Items	79		90		(11)		N/M
Total	Total	710,000		868,678		(158,678)		(18.3)	1,568,563		1,649,517		(80,954)		(4.9)	Total	808,148		858,563		(50,415)		(5.9)
Cost of Revenues⁽²⁾:	Cost of Revenues⁽²⁾:															Cost of Revenues(2):
Environmental Services	Environmental Services	322,906		400,306		(77,400)		(19.3)	734,378		785,413		(51,035)		(6.5)	Environmental Services	451,255		491,121		(39,866)		(8.1)
Safety-Kleen		140,051		189,053		(49,002)		(25.9)	334,629		369,419		(34,790)		(9.4)
Safety-Kleen Sustainability Solutions																Safety-Kleen Sustainability Solutions	108,376		113,828		(5,452)		(4.8)
Corporate Items	Corporate Items	7,724		5,574		2,150		N/M	8,340		4,465		3,875		N/M	Corporate Items	905		1,717		(812)		N/M
Total	Total	470,681		594,933		(124,252)		(20.9)	1,077,347		1,159,297		(81,950)		(7.1)	Total	560,536		606,666		(46,130)		(7.6)
Selling, General & Administrative Expenses:	Selling, General & Administrative Expenses:															Selling, General & Administrative Expenses:
Environmental Services	Environmental Services	35,925		44,902		(8,977)		(20.0)	81,901		79,307		2,594		3.3	Environmental Services	63,093		68,213		(5,120)		(7.5)
Safety-Kleen		27,916		37,472		(9,556)		(25.5)	65,402		74,790		(9,388)		(12.6)
Safety-Kleen Sustainability Solutions																Safety-Kleen Sustainability Solutions	13,459		15,249		(1,790)		(11.7)
Corporate Items	Corporate Items	39,998		41,546		(1,548)		(3.7)	85,843		84,635		1,208		1.4	Corporate Items	45,089		45,845		(756)		(1.6)
Total	Total	103,839		123,920		(20,081)		(16.2)	233,146		238,732		(5,586)		(2.3)	Total	121,641		129,307		(7,666)		(5.9)
Adjusted EBITDA:	Adjusted EBITDA:															Adjusted EBITDA:
Environmental Services	Environmental Services	138,083		117,868		20,215		17.2	246,997		207,378		39,619		19.1	Environmental Services	140,254		145,858		(5,604)		(3.8)
Safety-Kleen		46,589		79,459		(32,870)		(41.4)	107,737		134,252		(26,515)		(19.8)
Safety-Kleen Sustainability Solutions																Safety-Kleen Sustainability Solutions	31,632		24,204		7,428		30.7
Corporate Items	Corporate Items	(49,192)		(47,502)		(1,690)		(3.6)	(96,664)		(90,142)		(6,522)		(7.2)	Corporate Items	(42,435)		(44,181)		1,746		4.0
Total	Total	$	135,480	$	149,825	$	(14,345)	(9.6)%	$	258,070	$	251,488	$	6,582	2.6%	Total	$	129,451	$	125,881	$	3,570	2.8%

_____________________

N/M = not meaningful

(1)Direct revenue is revenue allocated to the segment performing the provided service.

(2)Cost of revenue is shown exclusive of items presented separately on the consolidated statements of operations which consist of (i) accretion of environmental liabilities and (ii) depreciation and amortization.

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Direct Revenues

There are many factors which have impacted and continue to impact our revenues including, ~~a significant impact to our revenue resulting from COVID-19 as discussed in~~ ~~Impact of COVID-19~~ ~~above. Other factors impacting our revenues include,~~ but are not limited to: overall levels of industrial activity and growth in North America, existence or non-existence of large scale environmental waste and remediation projects, competitive industry pricing, miles driven and related lubricant demand, impacts of acquisitions and divestitures, the level of emergency response ~~projects,~~services, weather related events, base and blended oil pricing, market changes relative to the collection of used oil, the number of parts washers placed at customer sites and foreign currency translation. In addition, customer efforts to ~~minimalize~~minimize hazardous waste and changes in regulation can also impact our revenues.

Environmental Services


		For the Three Months Ended														For the Six Months Ended										For the Three Months Ended
		June 30,						2020 over 2019						June 30,					2020 over 2019					March 31,				2021 over 2020
(in thousands, except percentages)	(in thousands, except percentages)	2020		2019		$ Change		% Change		2020		2019		$ Change		% Change		(in thousands, except percentages)		2021		2020		Change		% Change

Direct revenues	Direct revenues	$	496,914	$	563,076	$	(66,162)	(11.8)	%	$	1,063,276	$	1,072,098	$	(8,822)	(0.8)	%	Direct revenues		$	654,602	$	705,192	$	(50,590)	(7.2)	%

Environmental Services direct revenues for the three months ended ~~June 30, 2020~~March 31, 2021 decreased ~~$66.2~~$50.6 million from the comparable period in ~~2019,~~2020 driven primarily by significantly lower demand for our industrial and ~~technical related~~base field services, ~~due~~as well as our Safety-Kleen core service offerings. The Company continues to ~~slowing~~see lower economic activity ~~in light of~~resulting from the COVID-19 pandemic, which ~~also caused~~is reducing the demand for our industrial services as customers ~~to delay~~postpone and/or reduce the ~~timing~~levels of industrial turnarounds ~~environmental remediation projects~~ and ~~other~~specialized industrial services. Harsh weather conditions also negatively impacted demand for these services as well as our base field services. Direct revenues for such industrial services decreased $27.1 million from the same period in the prior year and our base field services, excluding any COVID-19 decontamination services, decreased $19.0 million from the same period in 2020. Direct revenues for Safety-Kleen core service offerings decreased $14.9 million from the prior year due to lower demand for these parts washer, containerized waste ~~disposal~~and vacuum services. ~~The~~Direct revenues at our incinerator facilities decreased $3.8 million when compared with the same period in the prior year due to lower utilization which was 80% as compared to 86% in the first quarter of 2020. This lower utilization was generally the result of more down days due to significant weather events which occurred during the quarter. From a revenue generation perspective, the decrease in utilization was partially offset by higher value waste streams. Volumes at our landfill facilities were lower than the prior year, however this decrease was offset by higher value waste streams as well resulting in relatively consistent landfill direct revenues. In the three months ended March 31, 2021, the Company generated ~~$50.0~~$28.2 million of direct revenues from COVID-19 ~~related emergency response~~decontamination services, ~~in the second quarter~~an increase of ~~2020. Operations at our network of facilities were relatively consistent with the comparable period in the prior year. Direct revenues at our incinerator facilities increased $6.9~~$18.2 million from prior year, which was driven by an increased volume of higher value waste streams. Incinerator utilization was at 87%, a 5% increase over the prior year. In the second quarter of 2019, utilization at our incinerators had been unfavorably impacted by down days for maintenance related turnarounds which did not recur in 2020. Lower volumes at our landfill facilities resulted in a $3.0 million decrease in direct revenues in the second quarter of 2020 when compared with the same quarter in the prior year. Also impacting this change in direct revenues within the Environmental Services segment was the negative impact of foreign currency translation on our Canadian operations of $2.5 million.

Environmental Services direct revenues for the six months ended June 30, 2020 decreased $8.8 million from the comparable period in 2019 primarily due to the impacts of the COVID-19 pandemic experienced in the second quarter. The Company generated $60.0 million of direct revenues from COVID-19 related emergency response services and increased utilization and average pricing at our incinerator facilities which contributed $30.9 million of incremental direct revenues in the first six months of 2020. Utilization at our incinerator facilities was 86% for the six months ended June 30, 2020, a 7% increase over the same period in the prior year. In the first half of 2019, incinerator utilization was unfavorably impacted by a fire at a neighboring facility and additional down days for maintenance-related turnarounds, neither of which recurred in 2020. Also impacting the year over year change in direct revenues within this segment was the ~~negative~~positive impact of foreign currency translation on our Canadian operations of ~~$3.4~~$4.7 million. We expect to see a slowdown in the volume of waste disposed of in our network of facilities in the third quarter due to the economic slowdowns thus far in 2020 as waste disposal tends to lag behind overall economic changes.

Safety-Kleen Sustainability Solutions


		For the Three Months Ended														For the Six Months Ended										For the Three Months Ended
		June 30,						2020 over 2019						June 30,					2020 over 2019					March 31,				2021 over 2020
(in thousands, except percentages)	(in thousands, except percentages)	2020		2019		$ Change		% Change		2020		2019		$ Change		% Change		(in thousands, except percentages)		2021		2020		Change		% Change

Direct revenues	Direct revenues	$	214,556	$	305,984	$	(91,428)	(29.9)	%	$	507,768	$	578,461	$	(70,693)	(12.2)	%	Direct revenues		$	153,467	$	153,281	$	186	0.1	%

Safety-Kleen Sustainability Solutions direct revenues for the three months ended ~~June 30, 2020 decreased $91.4 million from~~March 31, 2021 were relatively consistent with the comparable period in ~~2019. Significantly reduced demand for core services resulting~~2020. Revenue from lower automotive travel, customer shutdowns, in many cases forced by government directives and lower demand for oil related products, all stemming from the COVID-19 pandemic, drove these lower revenue levels. Basebase oil sales ~~decreased $43.1~~increased $6.4 million ~~from the comparable period in 2019 due to lower sales volume~~ and lower pricing, while blended oil sales decreased approximately $22.2 million from the comparable period in 2019, more predominately due to lower sales volumes. Recycled fuel oil and refinery byproducts sales decreased $13.3 million, driven by both lower sales volume and lower pricing. Decreased demand for Safety-Kleen's branch network's core service offerings also contributed to the decline in direct revenues as containerized waste and vacuum services revenues and parts washer services revenues decreased by $21.2 million and $7.8 million, respectively, from the comparable period in 2019. Offsetting these decreases was a $15.1 million

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~~increase in direct~~ revenues from used ~~motor~~ oil ~~collections~~collection services increased $4.7 million in the first three months of 2021 when compared to the first three months of 2020, both due to improved pricing ~~increases~~ on these products and services. ~~The impact~~Lower volumes of ~~foreign currency translation on our Safety-Kleen Canadian operations was minimal.~~

~~Safety-Kleen~~blended oil product sales decreased direct revenues ~~for the six months ended June 30, 2020~~$5.2 million in 2021. Direct revenues from bulk automotive related fluids decreased ~~$70.7~~$3.9 million from the comparable period in 2019 due to the impacts of the COVID-19 pandemic experienced in the second quarter. Base oil sales decreased $28.0 million from the comparable period in 2019 due to lower volume and ~~lower pricing, and blended oil sales decreased $18.0 million due to lower volumes. Recycled~~recycled fuel oil and refinery byproducts decreased ~~$18.0~~$2.3 million ~~driven by~~due to lower volumes and to a lesser extent, lower pricing. Decreased demand for Safety-Kleen's branch network's core service offerings also contributed to the decline in direct revenues as containerized waste and vacuum services revenues and parts washer services revenues decreased by $17.6 million and $8.8 million, respectively, from the comparable period in 2019. Offsetting these decreases was a $15.3 million increase in direct revenue from used motor oil collections due to pricing increases on these services. The impact of foreignprices. Foreign currency translation ~~on our Safety-Kleen~~positively impacted the Canadian operations ~~was minimal. Slow incremental improvements in the demand for the segment's core service offerings in the latter half~~ of ~~the second quarter are expected to continue in the second half of the year if national and state reopening plans continue to prove successful.~~Safety-Kleen Sustainability Solutions by $1.2 million.

Cost of Revenues

We believe that our ability to manage operating costs is important to our ability to remain price competitive. We continue to upgrade the quality and efficiency of our services through the development of new technology and continued modifications at our facilities, invest in new business opportunities and aggressively implement strategic sourcing and logistics solutions as well as other cost reduction initiatives, while also continuing to optimize our management and operating structure in an effort to maintain and increase operating margins.

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Environmental Services


		For the Three Months Ended																		For the Six Months Ended													For the Three Months Ended
		June 30,								2020 over 2019								June 30,					2020 over 2019							March 31,					2021 over 2020
(in thousands, except percentages)	(in thousands, except percentages)	2020			2019			$ Change		% Change		2020			2019			$ Change		% Change		(in thousands, except percentages)		2021			2020			Change			% Change
Cost of revenues	Cost of revenues	$	322,906		$	400,306		$	(77,400)	(19.3)	%	$	734,378		$	785,413		$	(51,035)	(6.5)	%	Cost of revenues		$	451,255		$	491,121		$	(39,866)		(8.1)	%
As a % of Direct revenues	As a % of Direct revenues	65.0		%	71.1		%			(6.1)	%	69.1		%	73.3		%			(4.2)	%	As a % of Direct revenues		68.9		%	69.6		%	(0.7)		%

Environmental Services cost of revenues for the three months ended ~~June 30, 2020~~March 31, 2021 decreased ~~$77.4~~$39.9 million from the comparable period in ~~2019, including~~2020, however remained relatively consistent with the prior period as a ~~$33.5~~percentage of direct revenues. Overall the decrease included a $21.1 million ~~decrease~~reduction to labor and benefits related costs, including travel costs, a ~~$24.1~~$16.0 million ~~decrease~~reduction to equipment and supply costs and a ~~$17.0~~$3.2 million ~~decrease in~~reduction to transportation, ~~disposal~~vehicle and fuel costs. These decreases were mainly attributable to lower direct revenues, as well as a ~~$9.0~~$3.8 million benefit from the Government Programs which is reflected in the reduction to labor and benefits related costs ~~directly attributable~~above.

Safety-Kleen Sustainability Solutions


	For the Three Months Ended
		March 31,	2021 over 2020
(in thousands, except percentages)			2021			2020			Change			% Change
Cost of revenues			$	108,376		$	113,828		$	(5,452)		(4.8)	%
As a % of Direct revenues			70.6		%	74.3		%	(3.7)		%

Safety-Kleen Sustainability Solutions cost of revenues for the three months ended March 31, 2021 decreased $5.5 million from the comparable period in 2020 and improved by 3.7% as a percentage of direct revenues. Lower spend on oil additives due to the ~~employee retention credit~~oil product mix and ~~subsidies recorded~~the continuation of the cost management initiatives implemented in the ~~second quarter~~latter half of 2020 ~~under~~drove this overall cost of revenues decrease and the ~~CARES Act and CEWS. Absent these benefits,~~improvement of cost of revenues as a percentage of direct revenues improved 4.3% primarily due to better leverage of our employee base in connection with our emergency response work resulting in lower subcontractor spending, cost reduction initiatives and higher utilization at our incinerators.

Environmental Services cost of revenues for the six months ended June 30, 2020 decreased $51.0 million from the comparable period in 2019, including a $21.4 million decrease to labor and benefits related costs, including travel costs, an $18.1 million decrease to transportation, disposal and fuel costs and an $11.8 million decrease to equipment and supply costs. These decreases were mainly attributable to lower direct revenues, as well as a $9.0 million reduction to labor and benefits related costs for the employee retention credit and subsidies recorded in the second quarter of 2020 under the CARES Act and CEWS. Absent these benefits, costs of revenues as a percentage of direct revenues improved 3.3% also primarily due to better leverage of employee base in connection with our emergency response work resulting in lower subcontractor spending, cost reduction initiatives and higher utilization at our incinerators.

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~~Safety-Kleen~~

For the Three Months Ended For the Six Months Ended
June 30, 2020 over 2019 June 30, 2020 over 2019
(in thousands, except percentages) 2020 2019 $
Change %
Change 2020 2019 $
Change %
Change
Cost of revenues $ 140,051 $ 189,053 $ (49,002) (25.9) % $ 334,629 $ 369,419 $ (34,790) (9.4) %
As a % of Direct revenues 65.3 % 61.8 % 3.5 % 65.9 % 63.9 % 2.0 %

Safety-Kleen cost of revenues for the three months ended June 30, 2020 decreased $49.0 million from the comparable period in 2019, including a $19.4 million decrease in costs of oil additives and other raw materials, a $12.3 million decrease in labor and benefits related costs, including travel costs and an $11.2 million decrease in transportation, disposal and fuel costs. These decreases were mainly attributable to lower direct revenues, as well as a $4.9 million reduction to labor and benefits related costs directly related to the employee retention credit and subsidies recorded in the second quarter of 2020 under the CARES Act and CEWS. Absent these benefits, costs of revenues as a percentage of direct revenues increased 5.8% as certain fixed costs could not be reduced proportionate to the overall lower business activity.

Safety-Kleen cost of revenues for the six months ended June 30, 2020 decreased $34.8 million from the comparable period in 2019, including a $16.2 million decrease in costs of oil additives and other raw materials, a $9.1 million decrease in transportation, disposal and fuel costs and an $8.1 million decrease in labor and benefits related costs, including travel costs. These decreases were mainly attributable to lower direct revenues, as well as a $4.9 million reduction to labor and benefits related costs for the employee retention credit and subsidies recorded in the second quarter of 2020 under the CARES Act and CEWS. Absent these benefits, costs of revenues as a percentage of direct revenues increased 3.0% as certain fixed costs could not be reduced proportionate to the overall lower business activity.revenues.

Selling, General and Administrative Expenses

We strive to manage our selling, general and administrative ("SG&A") expenses commensurate with the overall performance of our segments and corresponding revenue levels. We believe that our ability to properly align these costs with business performance is reflective of our strong management of the businesses and further promotes our ability to remain competitive in the marketplace.

Environmental Services


		For the Three Months Ended																		For the Six Months Ended													For the Three Months Ended
		June 30,								2020 over 2019								June 30,					2020 over 2019							March 31,					2021 over 2020
(in thousands, except percentages)	(in thousands, except percentages)	2020			2019			$ Change		% Change		2020			2019			$ Change		% Change		(in thousands, except percentages)		2021			2020			Change			% Change
SG&A expenses	SG&A expenses	$	35,925		$	44,902		$	(8,977)	(20.0)	%	$	81,901		$	79,307		$	2,594	3.3	%	SG&A expenses		$	63,093		$	68,213		$	(5,120)		(7.5)	%
As a % of Direct revenues	As a % of Direct revenues	7.2		%	8.0		%			(0.8)	%	7.7		%	7.4		%			0.3	%	As a % of Direct revenues		9.6		%	9.7		%	(0.1)		%

Environmental Services SG&A expenses for the three months ended ~~June 30, 2020~~March 31, 2021 decreased ~~$9.0~~$5.1 million from the comparable period in ~~2019. This~~2020 and remained relatively consistent as a percentage of direct revenues. The overall decrease in direct revenues directly contributed to a $6.6 million reductions in labor and benefits related costs, including travel, which in turn resulted in the decrease in SG&A expenses ~~was primarily attributable to lower direct revenues and therefore lower sales related costs, as well as a $4.3 million~~overall. This reduction in labor and benefits related costs ~~for the~~is also inclusive of $0.7 million of employee retention ~~credit~~credits and subsidies recorded in the second quarter of 2020 under the CARES Act and CEWS. Absent these benefits, Environmental Services SG&A expenses as a percentage of direct revenues remained relatively consistent with the comparable period in 2019.

~~Environmental Services SG&A expenses for the six months ended June 30, 2020 increased $2.6 million~~2021 from the comparable period in 2019. Contributing to this increase was the favorable resolution of a litigation matter of $5.5 million and recovery of certain trade receivables of $5.4 million, both of which were recorded in the first quarter of 2019, offset by the $4.3 million reduction in labor and benefits related costs for the employee retention credit and subsidies recorded in the second quarter of 2020 under the CARES Act and CEWS. Absent these nonrecurring transactions, Environmental Services SG&A expenses as a percentage of direct revenues remained relatively consistent with the comparable period in 2019.Government Programs.

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Safety-Kleen Sustainability Solutions


		For the Three Months Ended																		For the Six Months Ended													For the Three Months Ended
		June 30,								2020 over 2019								June 30,					2020 over 2019							March 31,					2021 over 2020
(in thousands, except percentages)	(in thousands, except percentages)	2020			2019			$ Change		% Change		2020			2019			$ Change		% Change		(in thousands, except percentages)		2021			2020			Change			% Change
SG&A expenses	SG&A expenses	$	27,916		$	37,472		$	(9,556)	(25.5)	%	$	65,402		$	74,790		$	(9,388)	(12.6)	%	SG&A expenses		$	13,459		$	15,249		$	(1,790)		(11.7)	%
As a % of Direct revenues	As a % of Direct revenues	13.0		%	12.2		%			0.8	%	12.9		%	12.9		%			—	%	As a % of Direct revenues		8.8		%	9.9		%	(1.1)		%

Safety-Kleen Sustainability Solutions SG&A expenses for the three ~~and six~~ months ended ~~June 30, 2020~~March 31, 2021 decreased ~~$9.6~~$1.8 million, ~~and $9.4 million, respectively,~~ from the comparable ~~periods~~period in ~~2019. These decreases were~~2020. This decrease was primarily attributable to ~~lower direct revenues and therefore lower sales related costs, as well as~~ a ~~$3.4 million~~ reduction in labor and ~~benefits~~benefit related costs, ~~for~~including travel, which included a benefit of $0.3 million from the ~~employee retention credit and subsidies recorded~~Government Programs recognized in the second quarter of 2020 under the CARES Act and CEWS. Absent these benefits, Safety-Kleen SG&A expenses as a percentage of direct revenues were higher than the comparable periods in 2019 due to a $1.8 million change in an environmental liability estimate for a Superfund site recorded in the second quarter of 2020.three months ended March 31, 2021.

Corporate Items


		For the Three Months Ended														For the Six Months Ended										For the Three Months Ended
		June 30,						2020 over 2019						June 30,					2020 over 2019					March 31,				2021 over 2020
(in thousands, except percentages)	(in thousands, except percentages)	2020		2019		$ Change		% Change		2020		2019		$ Change		% Change		(in thousands, except percentages)		2021		2020		Change		% Change
SG&A expenses	SG&A expenses	$	39,998	$	41,546	$	(1,548)	(3.7)	%	$	85,843	$	84,635	$	1,208	1.4	%	SG&A expenses		$	45,089	$	45,845	$	(756)	(1.6)	%

Corporate Items SG&A expenses for the three months ended ~~June 30, 2020~~March 31, 2021 remained relatively consistent with the prior year. The decrease in 2021 is primarily due to decreased ~~$1.5~~marketing and travel related expenses of $4.7 million from the comparable period in 2019 due a $1.9 million reduction in labor and benefits related costs, predominately driven by the employee retention credit and subsidies of $1.4 million recorded in the second quarter of 2020 under the CARES Act and CEWS. Corporate Items SG&A expenses for the three months ended June 30, 2020, also decreased by $1.0 million each for stock-based compensation and professional fees, partially offset by a ~~$3.1~~$4.7 million increase in severance and bonus related ~~costs.~~

Corporate Items SG&A expenses for the six months ended June 30, 2020 increased $1.2 million from the comparable period in 2019 primarily due to increased marketing expenses of $4.0 million to expand brand awareness and a $3.1 million increase in severance related costs, partially offset by a $3.6 million decrease in stock-based compensation and the $1.4 million reduction in labor costs for the employee retention credit and subsidies recorded in the second quarter of 2020 under the CARES Act and CEWS.expenses.

Adjusted EBITDA

Management considers Adjusted EBITDA to be a measurement of performance which provides useful information to both management and investors. Adjusted EBITDA should not be considered an alternative to net income or other measurements under ~~generally accepted accounting principles ("GAAP").~~GAAP. Adjusted EBITDA is not calculated identically by all companies and therefore our measurements of Adjusted EBITDA, while defined consistently and in accordance with our ~~existing~~historical credit agreement, may not be comparable to similarly titled measures reported by other companies.


		For the Three Months Ended														For the Six Months Ended										For the Three Months Ended
		June 30,						2020 over 2019						June 30,					2020 over 2019					March 31,				2021 over 2020
(in thousands, except percentages)	(in thousands, except percentages)	2020		2019		$ Change		% Change		2020		2019		$ Change		% Change		(in thousands, except percentages)		2021		2020		Change		% Change
Adjusted EBITDA:	Adjusted EBITDA:																	Adjusted EBITDA:
Environmental Services	Environmental Services	$	138,083	$	117,868	$	20,215	17.2	%	$	246,997	$	207,378	$	39,619	19.1	%	Environmental Services		$	140,254	$	145,858	$	(5,604)	(3.8)	%
Safety-Kleen		46,589		79,459		(32,870)		(41.4)		107,737		134,252		(26,515)		(19.8)
Safety-Kleen Sustainability Solutions																		Safety-Kleen Sustainability Solutions		31,632		24,204		7,428		30.7
Corporate Items	Corporate Items	(49,192)		(47,502)		(1,690)		(3.6)		(96,664)		(90,142)		(6,522)		(7.2)		Corporate Items		(42,435)		(44,181)		1,746		4.0
Total	Total	$	135,480	$	149,825	$	(14,345)	(9.6)	%	$	258,070	$	251,488	$	6,582	2.6	%	Total		$	129,451	$	125,881	$	3,570	2.8	%

We use Adjusted EBITDA to enhance our understanding of our operating performance, which represents our views concerning our performance in the ordinary, ongoing and customary course of our operations. We historically have found it helpful, and believe that investors have found it helpful, to consider an operating measure that excludes certain expenses relating to transactions not reflective of our core operations.

~~Table of Contents~~

The information about our operating performance provided by this financial measure is used by our management for a variety of purposes. We regularly communicate Adjusted EBITDA results to our lenders since our loan covenants are based upon levels of Adjusted EBITDA achieved and to our board of directors and we discuss with the board our interpretation of such results. We also compare our Adjusted EBITDA performance against internal targets as a key factor in determining cash and stock bonus compensation for executives and other employees, largely because we believe that this measure is indicative of how the fundamental business is performing and is being managed.

We also provide information relating to our Adjusted EBITDA so that analysts, investors and other interested persons have the same data that we use to assess our core operating performance. We believe that Adjusted EBITDA should be viewed only as a supplement to the GAAP financial information. We also believe, however, that providing this information in addition to, and together with, GAAP financial information permits the users of our financial statements to obtain a better understanding of our core operating

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performance and to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance on a standalone and a comparative basis.

The following is a reconciliation of net income to Adjusted EBITDA for the following periods (in thousands, except percentages):


		For the Three Months Ended									For the Six Months Ended							For the Three Months Ended
		June 30,									June 30,							March 31,
		2020			2019			2020			2019				2021			2020
Net income	Net income	$	29,023		$	36,244		$	40,595		$	37,220		Net income	$	21,736		$	11,572
Accretion of environmental liabilities	Accretion of environmental liabilities	2,766			2,560			5,327			5,134			Accretion of environmental liabilities	2,953			2,561
Stock-based compensation														Stock-based compensation	3,480			3,291
Depreciation and amortization	Depreciation and amortization	72,494			74,217			147,027			149,572			Depreciation and amortization	72,163			74,533

Other expense (income), net		500			564			2,865			(2,419)
Other expense, net														Other expense, net	1,228			2,365
Loss on sale of businesses														Loss on sale of businesses	—			3,074

Loss on sale of businesses		184			—			3,258			—
Interest expense, net of interest income	Interest expense, net of interest income	18,654			20,215			37,441			39,979			Interest expense, net of interest income	17,918			18,787
Provision for income taxes	Provision for income taxes	11,859			16,025			21,557			22,002			Provision for income taxes	9,973			9,698
Adjusted EBITDA	Adjusted EBITDA	$	135,480		$	149,825		$	258,070		$	251,488		Adjusted EBITDA	$	129,451		$	125,881
As a % of Direct revenues	As a % of Direct revenues	19.1		%	17.2		%	16.5		%	15.2		%	As a % of Direct revenues	16.0		%	14.7		%

Beginning in the first quarter of 2021, we revised our calculation of reported Adjusted EBITDA to add stock-based compensation, a non-cash item, to other charges which are added back to GAAP net income for purposes of calculating Adjusted EBITDA. We made this change in order to be more consistent with how certain of our peer group companies report their non-GAAP results, to align with how management will evaluate the operating performance of the Company and performance metrics for certain incentive compensation awards expected to be issued in 2021 and beyond, and to be consistent with the definition of “Adjusted EBITDA” now used for covenant compliance purposes in our outstanding financing agreements as amended to date. The amount added back each period is expected to match the line item for stock-based compensation as recorded on the Company's GAAP consolidated statements of cash flows. In the future, when we report our results, all relevant prior period Adjusted EBITDA amounts will be recast to provide comparative information.

Depreciation and Amortization


		For the Three Months Ended														For the Six Months Ended										For the Three Months Ended
		June 30,						2020 over 2019						June 30,					2020 over 2019					March 31,				2021 over 2020
(in thousands, except percentages)	(in thousands, except percentages)	2020		2019		$ Change		% Change		2020		2019		$ Change		% Change		(in thousands, except percentages)		2021		2020		Change		% Change
Depreciation of fixed assets and amortization of landfills and finance leases	Depreciation of fixed assets and amortization of landfills and finance leases	$	63,656	$	65,523	$	(1,867)	(2.8)	%	$	129,021	$	131,394	$	(2,373)	(1.8)	%	Depreciation of fixed assets and amortization of landfills and finance leases		$	64,574	$	65,366	$	(792)	(1.2)	%
Permits and other intangibles amortization	Permits and other intangibles amortization	8,838		8,694		144		1.7		18,006		18,178		(172)		(0.9)		Permits and other intangibles amortization		7,589		9,167		(1,578)		(17.2)	%
Total depreciation and amortization	Total depreciation and amortization	$	72,494	$	74,217	$	(1,723)	(2.3)	%	$	147,027	$	149,572	$	(2,545)	(1.7)	%	Total depreciation and amortization		$	72,163	$	74,533	$	(2,370)	(3.2)	%

Depreciation and amortization for the three ~~and six~~ months ended ~~June 30, 2020~~March 31, 2021 decreased from the comparable ~~periods~~period in ~~2019~~2020 primarily due to certain assets becoming fully depreciated.

Provision for Income Taxes


		For the Three Months Ended														For the Six Months Ended													For the Three Months Ended
		June 30,						2020 over 2019						June 30,					2020 over 2019							March 31,					2021 over 2020
(in thousands, except percentages)	(in thousands, except percentages)	2020		2019		$ Change		% Change		2020		2019		$ Change		% Change		(in thousands, except percentages)		2021			2020			Change			% Change
Provision for income taxes	Provision for income taxes	$	11,859	$	16,025	$	(4,166)	(26.0)	%	$	21,557	$	22,002	$	(445)	(2.0)	%	Provision for income taxes		$	9,973		$	9,698		$	275		2.8	%
Effective tax rate																		Effective tax rate		31.5		%	45.6		%	(14.1)		%

The provision for income taxes for the three ~~and six~~ months ended ~~June 30, 2020 decreased $4.2 million and $0.4 million, respectively, from~~March 31, 2021 was relatively consistent with the comparable ~~periods~~period in ~~2019.~~2020, however our effective tax rate decreased from 45.6% to 31.5%. Overall, the consistent provision is the result of an increase in pretax income of $10.4 million, offset by a decrease in unbenefited tax losses in certain of our Canadian entities. The decrease in ~~the three and six months ended June 30, 2020 was primarily due to decreased taxable income in the United States. Our~~our effective tax rate ~~for~~was predominately driven by the impact of the amount of unbenefited tax losses and related taxable income generated in the comparable periods. For the three ~~and six~~ months ended ~~June 30, 2020 was 29.0% and 34.7%, respectively, compared to 30.7% and 37.2%, respectively, for the same periods in 2019.~~

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~~For the six months ended June 30, 2020,~~March 31, 2021, we did not record ~~an income tax benefit of $1.1 million associated with the loss on sale of businesses and $0.6~~$1.6 million of income tax benefits generated from losses at certain of our Canadian entities. This compares to ~~$4.8 million of~~ income tax benefits of $1.1 million associated

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with the loss on sale of businesses and $0.9 million generated from losses at certain of our Canadian entities in the comparable period of ~~2019~~2020 which also were not recorded in that period's income tax provision.

Liquidity and Capital Resources


		Six Months Ended							Three Months Ended
		June 30,							March 31,
(in thousands)	(in thousands)	2020		2019		(in thousands)	2021		2020
Net cash from operating activities	Net cash from operating activities	$	173,486	$	138,470	Net cash from operating activities	$	103,000	$	33,681
Net cash used in investing activities	Net cash used in investing activities	(141,685)		(139,868)		Net cash used in investing activities	(86,737)		(93,087)
Net cash from (used in) financing activities		47,017		(23,793)
Net cash (used in) from financing activities						Net cash (used in) from financing activities	(40,620)		126,447

Net cash from operating activities

Net cash from operating activities for the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 was ~~$173.5~~$103.0 million, an increase of ~~$35.0~~$69.3 million from the comparable period in ~~2019.~~2020. The increase in operating cash flows from the comparable period of ~~2019~~2020 was ~~attributable~~due to ~~deferring~~improved working capital management in the ~~payment~~first quarter of ~~certain payroll and income taxes amounting to approximately $25.0 million as allowed for under the CARES Act and earlier issued guidance by the Internal Revenue Service.~~2021.

Net cash used in investing activities

Net cash used in investing activities for the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 was ~~$141.7~~$86.7 million, ~~an increase~~a decrease of ~~$1.8~~$6.4 million from the comparable period in ~~2019. Net~~2020. The decrease in net cash used in investing activities ~~increased~~was most notably due to a $40.9 million reduction in capital expenditure levels in 2021. Capital expenditures for the ~~timing~~three months ended March 31, 2020 included the nonrecurring purchase of ~~proceeds received from the purchase and sale~~our corporate headquarters. Offsetting this decrease in capital expenditures is an increase of ~~marketable securities in the comparative periods, offset by a decrease~~$22.9 million in cash paid for ~~acquisitions. As noted earlier,~~acquisitions and a reduction of $7.9 million in ~~response to~~proceeds from the uncertainty surrounding COVID-19, we reduced our planned capital expenditure spending. As such, additions to property, plant and equipment between the two periods were relatively consistent despite the purchasesale of ~~our Norwell, Massachusetts corporate headquarters in January 2020.~~businesses.

Net cash ~~from~~ (used in) from financing activities

Net cash ~~from~~used in financing activities for the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 was ~~$47.0~~$40.6 million, compared to net cash ~~used in~~from financing activities of ~~$23.8~~$126.4 million for the comparable period in ~~2019. On March 31, 2020, we borrowed~~2020. This decrease of $167.1 million was mostly due to a $150.0 million ~~under~~borrowing on our revolving credit facility in ~~response to the uncertainty surrounding the COVID-19 global pandemic. We subsequently repaid $75.0 million of this borrowing on June 29, 2020. This net financing cash inflow was partially offset by~~2020 and an increase in repurchases of common stock of ~~$6.1 million from the comparable period in 2019.~~$9.2 million. For additional information regarding our financing activities, see Note 11, "Financing Arrangements," to the accompanying unaudited consolidated financial statements.

Adjusted Free Cash Flow

Management considers adjusted free cash flow to be a measurement of liquidity which provides useful information to both management, creditors and investors about our financial strength and our ability to generate cash. Additionally, adjusted free cash flow is a metric on which a portion of management incentive compensation is based. We define adjusted free cash flow as net cash from operating activities, less additions to property, plant and equipment plus proceeds from sales or disposals of fixed assets. We exclude cash impacts of items derived from non-operating activities such as taxes paid in connection with divestitures and in the current period have also excluded cash paid in connection with the purchase of our corporate headquarters and certain capital improvements to the site as these expenditures are considered one-time in nature. Adjusted free cash flow should not be considered an alternative to net cash from operating activities or other measurements under GAAP. Adjusted free cash flow is not calculated identically by all companies, and therefore our measurements of adjusted free cash flow may not be comparable to similarly titled measures reported by other companies.

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The following is a reconciliation of net cash from operating activities to adjusted free cash flow for the following periods (in thousands):


		Six Months Ended							Three Months Ended
		June 30,							March 31,
		2020		2019			2021		2020
Net cash from operating activities	Net cash from operating activities	$	173,486	$	138,470	Net cash from operating activities	$	103,000	$	33,681
Additions to property, plant and equipment	Additions to property, plant and equipment	(125,721)		(118,372)		Additions to property, plant and equipment	(41,913)		(82,767)
Purchase and capital improvements of corporate headquarters	Purchase and capital improvements of corporate headquarters	21,080		—		Purchase and capital improvements of corporate headquarters	—		20,735
Proceeds from sale and disposal of fixed assets	Proceeds from sale and disposal of fixed assets	3,101		7,389		Proceeds from sale and disposal of fixed assets	1,204		2,150
Adjusted free cash flow	Adjusted free cash flow	$	71,946	$	27,487	Adjusted free cash flow	$	62,291	$	(26,201)

~~Working~~Summary of Capital Resources including Financing Arrangements

At ~~June 30, 2020,~~March 31, 2021, cash and cash equivalents and marketable securities totaled ~~$506.7~~$570.7 million, compared to ~~$414.4~~$571.0 million at December 31, ~~2019.~~2020. At ~~June 30, 2020,~~March 31, 2021, cash and cash equivalents held by our foreign subsidiaries totaled ~~$99.6 million and were readily convertible into other currencies including U.S. dollars. At June 30, 2020, the~~$133.7 million. The cash and cash equivalents and marketable securities balance for our U.S. operations was ~~$407.1~~$437.0 million at March 31, 2021, and our U.S. operations had net operating cash flows of ~~$125.1~~$98.6 million for the ~~six~~three months ended ~~June 30, 2020.~~March 31, 2021. Additionally, we have a $400.0 million revolving credit facility of which, as of March 31, 2021, approximately ~~$135.3~~$270.2 million was available to borrow ~~at June 30, 2020.~~and letters of credit under the credit facility in the amount of $121.3 million were outstanding. Based on the above and on our current plans, we believe that our ~~U.S.~~ operations have and will continue to have adequate financial resources to satisfy ~~their~~ current liquidity needs.

Financing arrangements are discussed in Note 11, “Financing Arrangements,” to our unaudited consolidated financial statements included in this report. We assess our liquidity in terms of our ability to generate cash to fund our operating, investing and financing activities. Our primary ongoing cash requirements will be to fund operations, capital expenditures, interest payments and investments in line with our business strategy. We believe our future operating cash flows will be sufficient to meet our future operating and internal investing cash ~~needs as well as any cash needs relating to our stock repurchase program.~~needs. Furthermore, our existing cash balance and the availability of ~~additional~~ borrowings under our revolving credit facility provide additional potential sources of liquidity should they be required.

~~Financing Arrangements~~

Financing arrangements are discussed in Note 11, “Financing Arrangements,” to our unaudited consolidated financial statements included in this report. As discussed therein, the Company maintains a $400.0 million revolving credit facility expiring on November 1, 2021. On March 31, 2020, the Company drew down $150.0 million on the revolving credit facility in response to the uncertainty surrounding the COVID-19 global pandemic. The Company repaid $75.0 million of that borrowing on June 29, 2020, and the remaining $75.0 million was repaid on July 28, 2020. The Company had $135.3 million available to borrow and outstanding letters of credit were $142.5 million at June 30, 2020. At December 31, 2019, $229.2 million was available to borrow and outstanding letters of credit were $146.9 million. We continue to monitor our debt instruments and evaluate opportunities where it may be beneficial to refinance or reallocate the portfolio.

As of ~~June 30, 2020,~~March 31, 2021, we were in compliance with the covenants of all our debt agreements, and we believe it is reasonably likely that we will continue to meet such covenants.

Common Stock Repurchases Pursuant to Publicly Announced Plan

The Company's common stock repurchases are made pursuant to the previously authorized board approved plan to repurchase up to $600.0 million of the Company's common stock. During each of the three months ended ~~June 30, 2020, the Company did not repurchase any shares of its common stock. During the six months ended June 30,~~March 31, 2021 and March 31, 2020, the Company repurchased and retired a total of approximately 0.3 million ~~shares~~ of the Company's common stock for total costs of approximately ~~$17.3 million. During the three and six months ended June 30, 2019, the Company repurchased and retired a total of approximately 0.1~~$26.5 million and ~~0.2 million shares, respectively, of the Company's common stock for total costs of approximately $4.9 million and $11.3~~$17.3 million, respectively.

Through ~~June 30, 2020,~~March 31, 2021, the Company has repurchased and retired a total of approximately ~~6.2~~7.4 million shares of its common stock for approximately ~~$332.7~~$416.7 million under this program. As of ~~June 30, 2020,~~March 31, 2021, an additional ~~$267.3~~$183.3 million remained available for repurchase of shares under this program.

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Environmental Liabilities


(in thousands, except percentages)	(in thousands, except percentages)	June 30, 2020		December 31, 2019		$ Change		% Change		(in thousands, except percentages)	March 31, 2021		December 31, 2020		Change		% Change
Closure and post-closure liabilities	Closure and post-closure liabilities	$	82,641	$	75,651	$	6,990	9.2	%	Closure and post-closure liabilities	$	91,105	$	87,926	$	3,179	3.6	%
Remedial liabilities	Remedial liabilities	112,483		114,173		(1,690)		(1.5)		Remedial liabilities	114,248		114,813		(565)		(0.5)
Total environmental liabilities	Total environmental liabilities	$	195,124	$	189,824	$	5,300	2.8	%	Total environmental liabilities	$	205,353	$	202,739	$	2,614	1.3	%

Total environmental liabilities as of ~~June 30, 2020~~March 31, 2021 were ~~$195.1~~$205.4 million, an increase of ~~$5.3~~$2.6 million compared to December 31, ~~2019~~2020, primarily due to ~~a $4.5~~accretion of $3.0 million, ~~increase~~new liabilities, including those assumed in ~~the closure~~acquisitions, of $1.1 million and ~~post-closure liabilities associated with one commercial landfill for which the Company has initiated closure plans and a $1.8 million increase~~changes in estimates recorded to the ~~estimated remedial liabilities for a Superfund site due to the receipt~~consolidated balance sheet of ~~updated regulatory approval requirements for remediation. The remaining change is resulting from accretion of $5.3~~$1.0 million, partially offset by expenditures of ~~$6.1~~$3.0 million.

We anticipate our environmental liabilities, substantially all of which we assumed in connection with our acquisitions, will be payable over many years and that cash flow from operations will generally be sufficient to fund the payment of such liabilities when required. However, events not anticipated (such as future changes in environmental laws and regulations) could require that such payments be made earlier or in greater amounts than currently anticipated, which could adversely affect our results of

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operations, cash flow and financial condition. Conversely, the development of new treatment technologies or other circumstances may arise in the future which may reduce amounts ultimately paid.

Capital Expenditures

Capital expenditures in the first ~~six~~three months of ~~2020~~2021 were ~~$125.7~~$41.9 million as compared to ~~$118.4~~$82.8 million in the same period of ~~2019.~~2020. The ~~increase~~decrease was primarily due to the nonrecurring purchase of our corporate headquarters in January of 2020 ~~offset by planned reductions in~~and reduced capital spending in ~~response to the uncertainty surrounding COVID-19.~~recent periods. We anticipate that ~~2020~~2021 capital spending, net of disposals, will be in the range of ~~$176.0~~$185.0 million to ~~$196.0 million, inclusive of the $21.1 million already spent on the purchase and capital improvements of our corporate headquarters.~~$205.0 million. However, unanticipated changes in environmental regulations could require us to make significant capital expenditures for our facilities and adversely affect our results of operations and cash flow.

Critical Accounting Policies and Estimates

Other than as described below, there were no material changes in the first ~~six~~three months of ~~2020~~2021 to the information provided under the heading “Critical Accounting Policies and Estimates” included in our Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

~~Goodwill and Other Long-Lived Assets~~Goodwill. . Goodwill is reviewed for impairment annually as of December 31 or when events or changes in the business environment ~~(triggering events)~~ 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, and then in some circumstances aggregate components having similar economic characteristics based on quantitative and/or qualitative factors. As of June 30, 2020 and December 31, 2019, we continue to have four reporting units, consisting of Environmental Sales and Service, Environmental Facilities, Safety-Kleen Oil and Safety-Kleen Environmental Services.

We conducted our annual impairment test of goodwill for all of our reporting units to which goodwill ~~was~~is allocated as of December 31, ~~2019~~2020 and determined that no adjustment to the carrying value of goodwill for any reporting unit was then necessary. ~~In all cases~~As a result of changes in our organizational structure and resulting change in our operating segments discussed above, we concluded that, for purposes of reviewing for potential goodwill impairment as of March 31, 2021, we now have 3 reporting units. The Environmental Services operating segment has two reporting units consisting of (i) Environmental Sales and Service which includes the ~~estimated fair value of each~~legacy Environmental Sales and Service reporting unit ~~significantly exceeded its carrying value.~~

Our long-lived assets are carried on our financial statements based on their cost less accumulated depreciation or amortization. Long-lived assets with finite lives are reviewed for impairment whenever events or changes in circumstances ("triggering events") indicate that their carrying value may not be entirely recoverable. When such factors and ~~circumstances exist, management compares~~certain operations previously included within Safety-Kleen Environmental Services including the ~~projected undiscounted future cash flows associated with~~core service offerings of containerized waste, parts washer 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 related asset or group of assets to the respective carrying amounts. The impairment loss, if any, would be measured as the excess of the carrying amount over the fair value of the asset and is recorded in the period in which the determination is made.

~~During the three month periods ended March 31, 2020 and June 30, 2020, we considered the actual and expected future impacts of COVID-19~~legacy Safety-Kleen Oil reporting unit and the overall decline in oil demand and pricing, partially driven by the global response to COVID-19, and concluded that no triggering event had occurred. This conclusion was based on a qualitative analysis incorporating (i) the significant excess fair value that previously existed in each reporting unit (ii) assessing the actualremaining 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 finished fluid products. The Company ~~during~~allocated goodwill to the ~~six~~

~~Table~~newly identified reporting units using a relative fair value approach. In addition, the Company completed an assessment of ~~Contents~~any potential goodwill impairment for all reporting units immediately prior and subsequent to the reallocation and determined that no impairment existed.

months ended June 30, 2020 and (iii) assessing the current and long-term performance of the Company given expectations that the effects on the operations and cash flows of each reporting unit arising from these disruptions will be short lived.

We will continue to evaluate our goodwill and other long-lived assets impacted by economic downturns. The market conditions which could lead to such future impairments are currently most prevalent for assets supporting our oil and gas field services and lodging services operations within the Environmental Sales & Services reporting unit and goodwill associated with our Safety-Kleen Oil reporting unit.

Our assumptions with respect to future cash flows and conclusions with respect to asset impairments could be impacted by changes arising from (i) a further significant deterioration in market conditions arising from COVID-19, (ii) a sustained period of economic and industrial slowdowns resulting from social distancing guidelines, (iii) continued reduced demand for base and blended oil products and an inability to price our oil related products and services to maintain profitability, (iv) inability to scale our operations and implement cost reduction efforts in light of reduced demand or (v) a further decline in our share price for a sustained period of time. These factors, among others, could significantly impact the impairment analysis and may result in future goodwill or asset impairment charges that, if incurred, could have a material adverse effect on our financial condition and results of operations.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Other than the draw down on March 31, 2020, of $150.0 million from our available borrowings under our revolving credit facility, of which $75.0 million was subsequently repaid on June 29, 2020 and the remaining $75.0 million was repaid on July 28, 2020, thereThere were no material changes in the first ~~six~~three months of ~~2020~~2021 to the information provided under Item 7A. “Quantitative and Qualitative Disclosures about Market Risk” in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. The revolving credit facility will expire on November 1, 2021, at which point, the amount of then outstanding borrowings will be due. However, the Company can repay the borrowings without penalty (other than customary LIBOR breakage fees) at any point. Interest on the credit facility is based on one-month LIBOR, and as of June 30, 2020, the effective interest rate on the remaining $75.0 million outstanding under our revolving credit facility was 1.44%. Interest payments are due monthly until the borrowing is repaid.

2020.

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ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Based on an evaluation under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, as of the end of the period covered by this Quarterly Report on Form 10-Q, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (as defined under Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) were effective as of ~~June 30, 2020~~March 31, 2021 to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in the Company's internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that was conducted during the ~~six~~three months ended ~~June 30, 2020~~

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March 31, 2021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. As a result of the COVID-19 pandemic, certain employees of the Company began working remotely in March 2020, and some continued to work remotely through June 30, 2020. These changes to the working environment did not have a material effect on the Company’s internal control over financial reporting. We will continue to monitor the impact of COVID-19 on our internal control over financial reporting.

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CLEAN HARBORS, INC. AND SUBSIDIARIES

PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See Note 16, “Commitments and Contingencies,” to the unaudited consolidated financial statements included in Item 1 of this report, which description is incorporated herein by reference.

ITEM 1A. RISK FACTORS

~~Except as set forth below, during~~During the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, there were no material changes from the risk factors as previously disclosed in Item 1A in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2019 other than the update described below.~~

~~Natural disasters or other catastrophic events, including pandemics, could negatively affect our business, financial condition and results of operations.~~

Natural disasters such as hurricanes, tornados or earthquakes or other catastrophic events including public health threats or outbreaks of communicable diseases including the recent novel coronavirus pandemic could negatively affect our operations and financial performance. The impact of such events could include physical damage to one or more of our facilities or equipment, the temporary lack of an adequate workforce in a market and the temporary disruption in rail or truck transportation services upon which we rely. These events could prevent or delay shipments from suppliers or to customers and reduce both volumes and revenue. Weather conditions and other event driven special projects also cause interim variations in our results. These events could adversely impact the ability of the Company's suppliers and customers to conduct business activities and could ultimately do so for an indefinite period of time. As a result, we may be required to suspend operations in some or all of our locations, which could have a material adverse effect on our business, financial condition and results of operations.2020.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Common Stock Repurchase Program

The following table provides information with respect to the shares of common stock repurchased by us for the periods indicated.

Period
Total Number of Shares Purchased ⁽¹⁾
Average Price Paid Per Share ⁽²⁾
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
(in thousands) ⁽³⁾
April 1, 2020 through April 30, 2020 14,337 $ 45.91 — $ 267,346
May 1, 2020 through May 31, 2020 217 51.62 — 267,346
June 1, 2020 through June 30, 2020 7,929 60.78 — 267,346
Total 22,483 $ 51.21 —


Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in thousands) (3)
January 1, 2021 through January 31, 2021	1,907	$	76.10	—	$	209,852
February 1, 2021 through February 28, 2021	11,642	79.38		—	209,852
March 1, 2021 through March 31, 2021	329,723	88.55		300,000	183,306
Total	343,272	88.17		300,000

________________

(1) Includes ~~22,483~~43,272 shares withheld by us from employees to satisfy employee tax obligations upon vesting of restricted stock granted to our employees under the Company's equity incentive plans.

(2) The average price paid per share of common stock repurchased under the stock repurchase program includes the commissions paid to brokers.

(3) Our board of directors has authorized the repurchase of up to $600.0 million of our common stock. We have funded and intend to fund the repurchases through available cash resources. The stock repurchase program authorizes us to purchase our 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 has depended and will depend on several factors, including share price, cash required for business plans, trading volume and other conditions. ~~During April 2018, we implemented~~We maintain a repurchase plan in accordance with Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended. Future repurchases will be made under the Rule 10b5-1 plan as well as open market or privately negotiated transactions as described above. We have no obligation to repurchase stock under this program and may suspend or terminate the repurchase program at any time.

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURE

Not applicable

ITEM 5. OTHER INFORMATION

None

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ITEM 6. EXHIBITS

Item No.

Description

Location

31.1

Rule 13a-14a/15d-14(a) Certification of the CEO Alan S. McKim

Filed herewith

31.2

Rule 13a-14a/15d-14(a) Certification of the CFO Michael L. Battles

Filed herewith

Section 1350 Certifications

Filed herewith

101

Interactive Data Files Pursuant to Rule 405 of Regulation S-T: Financial statements from the quarterly report on Form 10-Q of Clean Harbors, Inc. for the quarter ended ~~June 30, 2020,~~March 31, 2021, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets, (ii) Unaudited Consolidated Statements of Operations, (iii) Unaudited Consolidated Statements of Comprehensive Income (Loss), (iv) Unaudited Consolidated Statements of Cash Flows, (v) Unaudited Consolidated Statements of Stockholders’ Equity and (vi) Notes to Unaudited Consolidated Financial Statements.

104

The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended ~~June 30, 2020,~~March 31, 2021, formatted in iXBRL and contained in Exhibit 101.

_______________________

* Interactive data files are furnished and deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

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CLEAN HARBORS, INC. AND SUBSIDIARIES

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CLEAN HARBORS, INC.

Registrant

By:

/s/ ALAN S. MCKIM

Alan S. McKim

Chairman, President and Chief Executive Officer

Date:

~~August~~May 5, ~~2020~~2021

By:

/s/ MICHAEL L. BATTLES

Michael L. Battles

Executive Vice President and Chief Financial Officer

Date:

~~August~~May 5, ~~2020~~2021

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Period	Total Number of Shares Purchased ⁽¹⁾	Average Price Paid Per Share ⁽²⁾		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in thousands) ⁽³⁾
April 1, 2020 through April 30, 2020	14,337	$	45.91	—	$	267,346
May 1, 2020 through May 31, 2020	217	51.62		—	267,346
June 1, 2020 through June 30, 2020	7,929	60.78		—	267,346
Total	22,483	$	51.21	—