000082281812/312021Q1FALSE00008228182021-01-012021-03-31xbrli:shares00008228182021-04-30iso4217:USD00008228182021-03-3100008228182020-12-31iso4217:USDxbrli:shares0000822818us-gaap:ServiceMember2021-01-012021-03-310000822818us-gaap:ServiceMember2020-01-012020-03-310000822818us-gaap:ProductMember2021-01-012021-03-310000822818us-gaap:ProductMember2020-01-012020-03-3100008228182020-01-012020-03-3100008228182019-12-3100008228182020-03-310000822818us-gaap:CommonStockMember2020-12-310000822818us-gaap:AdditionalPaidInCapitalMember2020-12-310000822818us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000822818us-gaap:RetainedEarningsMember2020-12-310000822818us-gaap:RetainedEarningsMember2021-01-012021-03-310000822818us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000822818us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000822818us-gaap:CommonStockMember2021-01-012021-03-310000822818us-gaap:CommonStockMember2021-03-310000822818us-gaap:AdditionalPaidInCapitalMember2021-03-310000822818us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000822818us-gaap:RetainedEarningsMember2021-03-310000822818us-gaap:CommonStockMember2019-12-310000822818us-gaap:AdditionalPaidInCapitalMember2019-12-310000822818us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000822818us-gaap:RetainedEarningsMember2019-12-310000822818us-gaap:RetainedEarningsMember2020-01-012020-03-310000822818us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310000822818us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310000822818us-gaap:CommonStockMember2020-01-012020-03-310000822818us-gaap:CommonStockMember2020-03-310000822818us-gaap:AdditionalPaidInCapitalMember2020-03-310000822818us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310000822818us-gaap:RetainedEarningsMember2020-03-31clh:source0000822818clh:EnvironmentalServicesSegmentMember2021-03-310000822818clh:SafetyKleenSustainabilitySolutionsSegmentMember2021-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMembercountry:US2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMembercountry:USclh:SafetyKleenSustainabilitySolutionsSegmentMember2021-01-012021-03-310000822818us-gaap:CorporateNonSegmentMembercountry:US2021-01-012021-03-310000822818country:US2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMembercountry:CAclh:EnvironmentalServicesSegmentMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMembercountry:CAclh:SafetyKleenSustainabilitySolutionsSegmentMember2021-01-012021-03-310000822818country:CAus-gaap:CorporateNonSegmentMember2021-01-012021-03-310000822818country:CA2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:SafetyKleenSustainabilitySolutionsSegmentMember2021-01-012021-03-310000822818us-gaap:CorporateNonSegmentMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMemberclh:TechnicalServicesMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:SafetyKleenSustainabilitySolutionsSegmentMemberclh:TechnicalServicesMember2021-01-012021-03-310000822818us-gaap:CorporateNonSegmentMemberclh:TechnicalServicesMember2021-01-012021-03-310000822818clh:TechnicalServicesMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:FieldandEmergencyResponseMemberclh:EnvironmentalServicesSegmentMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:FieldandEmergencyResponseMemberclh:SafetyKleenSustainabilitySolutionsSegmentMember2021-01-012021-03-310000822818clh:FieldandEmergencyResponseMemberus-gaap:CorporateNonSegmentMember2021-01-012021-03-310000822818clh:FieldandEmergencyResponseMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMemberclh:IndustrialServicesAndOtherMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:IndustrialServicesAndOtherMemberclh:SafetyKleenSustainabilitySolutionsSegmentMember2021-01-012021-03-310000822818us-gaap:CorporateNonSegmentMemberclh:IndustrialServicesAndOtherMember2021-01-012021-03-310000822818clh:IndustrialServicesAndOtherMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMemberclh:SafetlyKleenEnvironmentalServicesMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:SafetyKleenSustainabilitySolutionsSegmentMemberclh:SafetlyKleenEnvironmentalServicesMember2021-01-012021-03-310000822818us-gaap:CorporateNonSegmentMemberclh:SafetlyKleenEnvironmentalServicesMember2021-01-012021-03-310000822818clh:SafetlyKleenEnvironmentalServicesMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMemberclh:SafetyKleenOilMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:SafetyKleenSustainabilitySolutionsSegmentMemberclh:SafetyKleenOilMember2021-01-012021-03-310000822818us-gaap:CorporateNonSegmentMemberclh:SafetyKleenOilMember2021-01-012021-03-310000822818clh:SafetyKleenOilMember2021-01-012021-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMembercountry:US2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMembercountry:USclh:SafetyKleenSustainabilitySolutionsSegmentMember2020-01-012020-03-310000822818us-gaap:CorporateNonSegmentMembercountry:US2020-01-012020-03-310000822818country:US2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMembercountry:CAclh:EnvironmentalServicesSegmentMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMembercountry:CAclh:SafetyKleenSustainabilitySolutionsSegmentMember2020-01-012020-03-310000822818country:CAus-gaap:CorporateNonSegmentMember2020-01-012020-03-310000822818country:CA2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:SafetyKleenSustainabilitySolutionsSegmentMember2020-01-012020-03-310000822818us-gaap:CorporateNonSegmentMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMemberclh:TechnicalServicesMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:SafetyKleenSustainabilitySolutionsSegmentMemberclh:TechnicalServicesMember2020-01-012020-03-310000822818us-gaap:CorporateNonSegmentMemberclh:TechnicalServicesMember2020-01-012020-03-310000822818clh:TechnicalServicesMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:FieldandEmergencyResponseMemberclh:EnvironmentalServicesSegmentMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:FieldandEmergencyResponseMemberclh:SafetyKleenSustainabilitySolutionsSegmentMember2020-01-012020-03-310000822818clh:FieldandEmergencyResponseMemberus-gaap:CorporateNonSegmentMember2020-01-012020-03-310000822818clh:FieldandEmergencyResponseMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMemberclh:IndustrialServicesAndOtherMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:IndustrialServicesAndOtherMemberclh:SafetyKleenSustainabilitySolutionsSegmentMember2020-01-012020-03-310000822818us-gaap:CorporateNonSegmentMemberclh:IndustrialServicesAndOtherMember2020-01-012020-03-310000822818clh:IndustrialServicesAndOtherMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMemberclh:SafetlyKleenEnvironmentalServicesMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:SafetyKleenSustainabilitySolutionsSegmentMemberclh:SafetlyKleenEnvironmentalServicesMember2020-01-012020-03-310000822818us-gaap:CorporateNonSegmentMemberclh:SafetlyKleenEnvironmentalServicesMember2020-01-012020-03-310000822818clh:SafetlyKleenEnvironmentalServicesMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMemberclh:SafetyKleenOilMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:SafetyKleenSustainabilitySolutionsSegmentMemberclh:SafetyKleenOilMember2020-01-012020-03-310000822818us-gaap:CorporateNonSegmentMemberclh:SafetyKleenOilMember2020-01-012020-03-310000822818clh:SafetyKleenOilMember2020-01-012020-03-310000822818clh:A2021AcquisitionsMember2021-03-272021-03-270000822818clh:A2020AcquisitionsMember2020-04-172020-04-170000822818clh:OilAndOilRelatedProductsMember2021-03-310000822818clh:OilAndOilRelatedProductsMember2020-12-310000822818us-gaap:PublicUtilitiesInventorySuppliesMember2021-03-310000822818us-gaap:PublicUtilitiesInventorySuppliesMember2020-12-310000822818clh:SolventAndSolutionsMember2021-03-310000822818clh:SolventAndSolutionsMember2020-12-310000822818clh:OtherInventoriesMember2021-03-310000822818clh:OtherInventoriesMember2020-12-310000822818us-gaap:LandMember2021-03-310000822818us-gaap:LandMember2020-12-310000822818us-gaap:AssetRetirementObligationCostsMember2021-03-310000822818us-gaap:AssetRetirementObligationCostsMember2020-12-310000822818us-gaap:LandfillMember2021-03-310000822818us-gaap:LandfillMember2020-12-310000822818clh:BuildingsAndImprovemensMember2021-03-310000822818clh:BuildingsAndImprovemensMember2020-12-310000822818clh:CampEquipmentMember2021-03-310000822818clh:CampEquipmentMember2020-12-310000822818us-gaap:VehiclesMember2021-03-310000822818us-gaap:VehiclesMember2020-12-310000822818us-gaap:EquipmentMember2021-03-310000822818us-gaap:EquipmentMember2020-12-310000822818us-gaap:FurnitureAndFixturesMember2021-03-310000822818us-gaap:FurnitureAndFixturesMember2020-12-310000822818us-gaap:ConstructionInProgressMember2021-03-310000822818us-gaap:ConstructionInProgressMember2020-12-310000822818clh:EnvironmentalServicesSegmentMember2020-12-310000822818clh:SafetyKleenSustainabilitySolutionsSegmentMember2020-12-310000822818clh:EnvironmentalServicesSegmentMember2021-01-012021-03-310000822818clh:SafetyKleenSustainabilitySolutionsSegmentMember2021-01-012021-03-31clh:reportingUnit0000822818clh:PermitsMember2021-03-310000822818clh:PermitsMember2020-12-310000822818us-gaap:CustomerRelationshipsMember2021-03-310000822818us-gaap:CustomerRelationshipsMember2020-12-310000822818us-gaap:OtherIntangibleAssetsMember2021-03-310000822818us-gaap:OtherIntangibleAssetsMember2020-12-310000822818us-gaap:TrademarksAndTradeNamesMember2021-03-310000822818us-gaap:TrademarksAndTradeNamesMember2020-12-310000822818clh:LandfillRetirementLiabilityMember2020-12-310000822818clh:NonLandfillRetirementLiabilityMember2020-12-310000822818clh:LandfillRetirementLiabilityMember2021-01-012021-03-310000822818clh:NonLandfillRetirementLiabilityMember2021-01-012021-03-310000822818clh:LandfillRetirementLiabilityMember2021-03-310000822818clh:NonLandfillRetirementLiabilityMember2021-03-31xbrli:pure0000822818clh:RemedialLiabilitiesForLandfillSitesMember2020-12-310000822818clh:RemedialLiabilitiesForInactiveSitesMember2020-12-310000822818clh:RemedialLiabilitiesIncludingSuperfundForNonLandfillOperationsMember2020-12-310000822818clh:RemedialLiabilitiesForLandfillSitesMember2021-01-012021-03-310000822818clh:RemedialLiabilitiesForInactiveSitesMember2021-01-012021-03-310000822818clh:RemedialLiabilitiesIncludingSuperfundForNonLandfillOperationsMember2021-01-012021-03-310000822818clh:RemedialLiabilitiesForLandfillSitesMember2021-03-310000822818clh:RemedialLiabilitiesForInactiveSitesMember2021-03-310000822818clh:RemedialLiabilitiesIncludingSuperfundForNonLandfillOperationsMember2021-03-310000822818clh:TermLoanAgreementMemberus-gaap:SecuredDebtMember2021-03-310000822818clh:TermLoanAgreementMemberus-gaap:SecuredDebtMember2020-12-310000822818clh:SeniorUnsecuredNotesdue2027Memberus-gaap:UnsecuredDebtMember2020-12-310000822818clh:SeniorUnsecuredNotesdue2027Memberus-gaap:UnsecuredDebtMember2021-03-310000822818us-gaap:UnsecuredDebtMemberclh:SeniorUnsecuredNotesdue2029Member2020-12-310000822818us-gaap:UnsecuredDebtMemberclh:SeniorUnsecuredNotesdue2029Member2021-03-310000822818us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2020-12-310000822818us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-03-310000822818clh:TermLoanswithInterestRateSwapAgreementsMember2021-03-310000822818us-gaap:InterestRateSwapMember2021-03-310000822818us-gaap:InterestRateSwapMember2021-01-012021-03-310000822818clh:PerformanceStockAwardsMember2021-01-012021-03-310000822818clh:PerformanceStockAwardsMember2020-01-012020-03-310000822818us-gaap:RestrictedStockMember2021-01-012021-03-310000822818us-gaap:RestrictedStockMember2020-01-012020-03-310000822818us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000822818us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310000822818us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310000822818us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000822818us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-03-310000822818us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-03-310000822818us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310000822818us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-03-310000822818us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310000822818us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310000822818us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-03-310000822818us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-03-310000822818us-gaap:RestrictedStockMember2020-12-310000822818us-gaap:RestrictedStockMember2021-01-012021-03-310000822818us-gaap:RestrictedStockMember2021-03-310000822818us-gaap:RestrictedStockMember2020-01-012020-03-310000822818clh:PerformanceStockAwardsMember2020-12-310000822818clh:PerformanceStockAwardsMember2021-01-012021-03-310000822818clh:PerformanceStockAwardsMember2021-03-310000822818clh:PerformanceStockAwardsMember2020-01-012020-03-310000822818clh:LegalAndAdministrativeProceedingsMember2021-03-310000822818clh:LegalAndAdministrativeProceedingsMember2020-12-310000822818clh:FederalAndStateEnforcementActionsMember2021-03-310000822818clh:FederalAndStateEnforcementActionsMember2020-12-31clh:permit0000822818clh:VilleMercierMember1968-01-011968-12-31clh:municipality0000822818clh:VilleMercierMember1999-01-011999-12-31iso4217:CAD0000822818clh:VilleMercierMember2012-01-012012-12-31clh:proceedingclh:claimclh:site0000822818clh:SuperfundProceedingsMember2021-01-012021-03-310000822818clh:SuperfundProceedingsMember2021-03-310000822818clh:BRFacilityMemberclh:RemedialLiabilitiesForInactiveSitesMember2021-01-012021-03-310000822818clh:CertainOtherThirdPartySitesMember2021-01-012021-03-310000822818clh:KleenPerformanceProductsMember2021-01-012021-03-310000822818clh:EnvironmentalServicesSegmentMemberus-gaap:IntersegmentEliminationMember2021-01-012021-03-310000822818clh:EnvironmentalServicesSegmentMemberus-gaap:IntersegmentEliminationMember2020-01-012020-03-310000822818clh:EnvironmentalServicesSegmentMember2020-01-012020-03-310000822818us-gaap:IntersegmentEliminationMemberclh:SafetyKleenSustainabilitySolutionsSegmentMember2021-01-012021-03-310000822818us-gaap:IntersegmentEliminationMemberclh:SafetyKleenSustainabilitySolutionsSegmentMember2020-01-012020-03-310000822818clh:SafetyKleenSustainabilitySolutionsSegmentMember2020-01-012020-03-310000822818clh:OperatingSegmentsAndCorporateNonSegmentMember2021-01-012021-03-310000822818clh:OperatingSegmentsAndCorporateNonSegmentMember2020-01-012020-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMember2021-03-310000822818us-gaap:OperatingSegmentsMemberclh:EnvironmentalServicesSegmentMember2020-12-310000822818us-gaap:OperatingSegmentsMemberclh:SafetyKleenSustainabilitySolutionsSegmentMember2021-03-310000822818us-gaap:OperatingSegmentsMemberclh:SafetyKleenSustainabilitySolutionsSegmentMember2020-12-310000822818us-gaap:CorporateNonSegmentMember2021-03-310000822818us-gaap:CorporateNonSegmentMember2020-12-310000822818country:US2021-03-310000822818country:US2020-12-310000822818us-gaap:NonUsMember2021-03-310000822818us-gaap:NonUsMember2020-12-31
Table of Contents
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 ENDEDMARCH 31, 2021
OR
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)
Massachusetts04-2997780
(State or Other Jurisdiction of Incorporation or Organization)(IRS Employer Identification No.)
42 Longwater DriveNorwellMA02061-9149
(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 classTrading SymbolName of each exchange on which registered
Common Stock, $0.01 par valueCLHNew 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 filerAccelerated filer
Non-accelerated filerSmaller 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 April 30, 2021 was 54,564,897.



CLEAN HARBORS, INC.
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
Page No.




Table of Contents

CLEAN HARBORS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, 2021December 31, 2020
ASSETS(unaudited)
Current assets:
Cash and cash equivalents$496,383 $519,101 
Short-term marketable securities74,320 51,857 
Accounts receivable, net of allowances aggregating $44,407 and $44,749, respectively
620,184 611,534 
Unbilled accounts receivable55,239 55,681 
Inventories and supplies219,499 220,498 
Prepaid expenses and other current assets76,726 67,051 
Total current assets1,542,351 1,525,722 
Property, plant and equipment, net1,527,944 1,525,298 
Other assets:
Operating lease right-of-use assets142,006 150,341 
Goodwill543,605 527,023 
Permits and other intangibles, net380,053 386,620 
Other16,580 16,516 
Total other assets1,082,244 1,080,500 
Total assets$4,152,539 $4,131,520 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt$7,535 $7,535 
Accounts payable213,355 195,878 
Deferred revenue83,165 74,066 
Accrued expenses284,212 295,823 
Current portion of closure, post-closure and remedial liabilities26,896 26,093 
Current portion of operating lease liabilities35,390 36,750 
Total current liabilities650,553 636,145 
Other liabilities:
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
99,239 102,623 
Long-term debt, less current portion1,548,517 1,549,641 
Operating lease liabilities, less current portion107,554 114,258 
Deferred tax liabilities230,236 230,097 
Other long-term liabilities88,772 83,182 
Total other liabilities2,153,536 2,153,824 
Commitments and contingent liabilities (See Note 16)
Stockholders’ equity:
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 capital555,966 582,749 
Accumulated other comprehensive loss(199,529)(211,477)
Accumulated earnings991,467 969,731 
Total stockholders’ equity1,348,450 1,341,551 
Total liabilities and stockholders’ equity$4,152,539 $4,131,520 

The accompanying notes are an integral part of these unaudited consolidated financial statements.
1

Table of Contents

CLEAN HARBORS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
March 31,
20212020
Revenues:
Service revenues$662,708 $719,867 
Product revenues145,440 138,696 
Total revenues808,148 858,563 
Cost of revenues: (exclusive of items shown separately below)
Service revenues450,338 492,716 
Product revenues110,198 113,950 
Total cost of revenues560,536 606,666 
Selling, general and administrative expenses121,641 129,307 
Accretion of environmental liabilities2,953 2,561 
Depreciation and amortization72,163 74,533 
Income from operations50,855 45,496 
Other expense, net(1,228)(2,365)
Loss on sale of businesses (3,074)
Interest expense, net of interest income of $479 and $998, respectively
(17,918)(18,787)
Income before provision for income taxes31,709 21,270 
Provision for income taxes9,973 9,698 
Net income$21,736 $11,572 
Earnings per share:
Basic$0.40 $0.21 
Diluted$0.39 $0.21 
Shares used to compute earnings per share - Basic54,723 55,757 
Shares used to compute earnings per share - Diluted55,043 56,055 

The accompanying notes are an integral part of these unaudited consolidated financial statements.
2

Table of Contents

CLEAN HARBORS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands)
 Three Months Ended
March 31,
 20212020
Net income$21,736 $11,572 
Other comprehensive income (loss), net of tax:
Unrealized losses on available-for-sale securities(74)(64)
Unrealized gain (loss) on interest rate hedge3,108 (18,382)
Reclassification adjustment for losses on interest rate hedge included in net income2,448 1,098 
Foreign currency translation adjustments6,466 (41,958)
Other comprehensive income (loss), net of tax11,948 (59,306)
Comprehensive income (loss)$33,684 $(47,734)

The accompanying notes are an integral part of these unaudited consolidated financial statements.
3

Table of Contents

CLEAN HARBORS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
March 31,
20212020
Cash flows from operating activities:
Net income$21,736 $11,572 
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization72,163 74,533 
Allowance for doubtful accounts2,446 4,700 
Amortization of deferred financing costs and debt discount900 891 
Accretion of environmental liabilities2,953 2,561 
Changes in environmental liability estimates275 3,470 
Deferred income taxes(39) 
Other expense, net1,228 2,365 
Stock-based compensation3,480 3,291 
Loss on sale of businesses 3,074 
Environmental expenditures(3,011)(3,435)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable and unbilled accounts receivable(9,703)(24,960)
Inventories and supplies(747)(7,024)
Other current and non-current assets(9,956)8,714 
Accounts payable22,179 (5,169)
Other current and long-term liabilities(904)(40,902)
Net cash from operating activities103,000 33,681 
Cash flows used in investing activities:
Additions to property, plant and equipment(41,913)(82,767)
Proceeds from sale and disposal of fixed assets1,204 2,150 
Acquisitions, net of cash acquired(22,918) 
Proceeds from sale of businesses, net of transactional costs 7,856 
Additions to intangible assets including costs to obtain or renew permits(505)(448)
Proceeds from sale of available-for-sale securities20,375 12,180 
Purchases of available-for-sale securities(42,980)(32,058)
Net cash used in investing activities(86,737)(93,087)
Cash flows (used in) from financing activities:
Change in uncashed checks(6,662)(1,775)
Tax payments related to withholdings on vested restricted stock(3,719)(2,224)
Repurchases of common stock(26,546)(17,341)
Deferred financing costs paid(137) 
Payments on finance leases(1,672)(329)
Principal payments on debt(1,884)(1,884)
Borrowings from revolving credit facility 150,000 
Net cash (used in) from financing activities(40,620)126,447 
Effect of exchange rate change on cash1,639 (6,827)
(Decrease) increase in cash and cash equivalents(22,718)60,214 
Cash and cash equivalents, beginning of period519,101 371,991 
Cash and cash equivalents, end of period$496,383 $432,205 
Supplemental information:
Cash payments for interest and income taxes:
Interest paid$27,507 $30,648 
Income taxes paid, net of refunds3,599 971 
Non-cash investing activities:
Property, plant and equipment accrued5,108 12,173 
ROU assets obtained in exchange for operating lease liabilities2,305 12,410 
ROU assets obtained in exchange for finance lease liabilities9,205 (856)
The accompanying notes are an integral part of these unaudited consolidated financial statements.
4

Table of Contents

CLEAN HARBORS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands)

Common StockAccumulated
Other
Comprehensive Loss
Number
of
Shares
$0.01
Par
Value
Additional
Paid-in
Capital
Accumulated
Earnings
Total
Stockholders’
Equity
Balance at January 1, 202154,773 $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 withholdings78 1 (3,720)— — (3,719)
Repurchases of common stock(300)(3)(26,543)— — (26,546)
Balance at March 31, 202154,551 $546 $555,966 $(199,529)$991,467 $1,348,450 


Common StockAccumulated
Other
Comprehensive Loss
Number
of
Shares
$0.01
Par
Value
Additional
Paid-in
Capital
Accumulated
Earnings
Total
Stockholders’
Equity
Balance at January 1, 202055,798 $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 withholdings59 1 (2,225)— — (2,224)
Repurchases of common stock(302)(3)(17,338)— — (17,341)
Balance at March 31, 202055,555 $556 $628,140 $(269,357)$846,466 $1,205,805 

The accompanying notes are an integral part of these unaudited consolidated financial statements.
5

Table of Contents

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, 2020.

(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, 2020. There have been no material changes in these policies or their application except for the changes described below.
Changes in Operating Segments
During the first quarter of 2021, the Company reorganized its Safety-Kleen business. The collection services for waste oil, used oil filters, antifreeze and related items and bulk blended oil sales operations were combined with the Safety-Kleen Oil business to form the Safety-Kleen Sustainability Solutions business. Under this structure, Safety-Kleen Sustainability Solutions will encompass both sides of the spread 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 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 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 17, "Segment Reporting" for more information. The amounts presented for the three months ended March 31, 2020 and any segment information presented as of December 31, 2020 have been recast to reflect the impact of such changes. In addition, certain intercompany transactions previously recorded in Corporate Items have been allocated to the 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 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 four sources of revenue and the Safety-Kleen Sustainability Solutions operating segment has two 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 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
6

Table of Contents

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, specialty cleaning services including chemical cleaning and high and ultra-high pressure water cleaning, daylighting, production services and upstream energy services. Services are provided based on purchase orders or agreements with the customer and include prices based upon daily, hourly or job rates for equipment, materials and personnel. The Company recognizes revenue for these services over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. The Company uses the input method to recognize revenue over time, based on time and materials incurred.
Safety-Kleen Environmental Services—Safety-Kleen Environmental Services revenues contribute both to the Environmental Services operating segment and the Safety-Kleen Sustainability Solutions operating segment depending upon the nature of such revenues and operating responsibilities relative to driving these revenues. Revenues from providing containerized waste handling and disposal services, parts washer services and vacuum services, referred to collectively as the Safety-Kleen 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 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. Related collection and transportation revenues are recognized over time, as the customer receives and consumes the benefits of the services as they are being performed and the Company has a right to payment for performance completed to date. Parts washer services include customer use of our parts washer equipment, cleaning and maintenance of the parts washer equipment and removal and replacement of used cleaning fluids. Parts washer services are considered a single performance obligation due to the highly integrated and interdependent nature of the arrangement. Revenue from parts washer services is recognized over the service interval as the customer receives the benefit of the services.
7

Table of Contents

Safety-Kleen Oil—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 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 March 31, 2021
Environmental ServicesSafety-Kleen Sustainability SolutionsCorporateTotal
Primary Geographical Markets
United States$575,508 $138,990 $79 $714,577 
Canada77,370 16,201  93,571 
Total third-party revenues$652,878 $155,191 $79 $808,148 
Sources of Revenue
Technical Services$272,040 $ $ $272,040 
Field and Emergency Response Services105,168   105,168 
Industrial Services and Other
119,810  79 119,889 
Safety-Kleen Environmental Services155,860 38,978  194,838 
Safety-Kleen Oil 116,213  116,213 
Total third-party revenues$652,878 $155,191 $79 $808,148 
For the Three Months Ended March 31, 2020
Environmental ServicesSafety-Kleen Sustainability SolutionsCorporateTotal
Primary Geographical Markets
United States$607,110 $139,437 $(302)$746,245 
Canada97,926 14,000 392 112,318 
Total third-party revenues$705,036 $153,437 $90 $858,563 
Sources of Revenue
Technical Services$275,273 $ $ $275,273 
Field and Emergency Response Services105,912   105,912 
Industrial Services and Other146,919  90 147,009 
Safety-Kleen Environmental Services176,932 37,549  214,481 
Safety-Kleen Oil 115,888  115,888 
Total third-party revenues$705,036 $153,437 $90 $858,563 
Contract Balances
(in thousands)March 31, 2021December 31, 2020
Receivables$620,184 $611,534 
Contract assets (unbilled receivables)55,239 55,681 
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 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
8

Table of Contents

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 $8.8 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 $1.4 million was recognized.

(5) INVENTORIES AND SUPPLIES
Inventories and supplies consisted of the following (in thousands):
March 31, 2021December 31, 2020
Oil and oil related products$76,106 $76,209 
Supplies120,814 120,007 
Solvent and solutions9,145 8,812 
Other13,434 15,470 
Total inventories and supplies$219,499 $220,498 
Supplies consists primarily of critical spare parts to support the Company's incinerator and re-refinery operations, personal protective 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):
March 31, 2021December 31, 2020
Land$145,662 $139,776 
Asset retirement costs (non-landfill)17,747 16,407 
Landfill assets193,009 191,687 
Buildings and improvements (1)
514,711 509,804 
Camp equipment158,281 159,021 
Vehicles (2)
855,842 844,026 
Equipment (3)
1,812,858 1,807,235 
Furniture and fixtures6,992 7,082 
Construction in progress39,943 24,378 
3,745,045 3,699,416 
Less - accumulated depreciation and amortization2,217,101 2,174,118 
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 $8.9 million in both periods.
(2) Balances inclusive of gross ROU assets classified as finance leases of $56.4 million and $47.2 million, respectively.
(3) Balances inclusive of gross ROU assets classified as finance leases of $9.4 million and $9.3 million, respectively.
Depreciation expense, inclusive of landfill and finance lease amortization, was $64.6 million and $65.4 million for the three months ended March 31, 2021 and March 31, 2020, respectively.

9

Table of Contents

(7) GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in goodwill by segment for the three months ended March 31, 2021 were as follows (in thousands):
Environmental ServicesSafety-Kleen Sustainability SolutionsTotals
Balance at January 1, 2021$401,918 $125,105 $527,023 
Increase from current period acquisition 15,875 15,875 
Foreign currency translation520 187 707 
Balance at March 31, 2021$402,438 $141,167 $543,605 
The balances in the table above have been recast to reflect the Company's segment change in the first quarter of 2021. As discussed in Note 17, "Segment Reporting," as a result of operational and managerial changes, the Company changed its operating segments in accordance with ASC 280, Segment Reporting. In addition, the Company concluded that, for purposes of reviewing for potential goodwill impairment, it now has three reporting units. The Environmental Services operating segment has two reporting units consisting of (i) Environmental Sales and Service which includes the legacy Environmental Sales and Service reporting unit and certain operations previously included within Safety-Kleen Environmental Services including the core service offerings of containerized waste, parts 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 legacy Safety-Kleen Oil reporting unit and the remaining operations of the legacy Safety-Kleen Environmental Services reporting unit primarily consisting of collection services for waste oil, anti-freeze and used oil filters as well as the sale of bulk blended re-refined oil and other automotive related 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 for all reporting units immediately prior and subsequent to the reallocation and determined that no impairment existed.
As of March 31, 2021 and December 31, 2020, the Company's intangible assets consisted of the following (in thousands):
March 31, 2021December 31, 2020
CostAccumulated
Amortization
NetCostAccumulated
Amortization
Net
Permits$184,675 $97,061 $87,614 $183,766 $95,033 $88,733 
Customer and supplier relationships
372,860 207,929 164,931 382,083 211,895 170,188 
Other intangible assets
39,334 35,107 4,227 39,287 34,744 4,543 
Total amortizable permits and other intangible assets
596,869 340,097 256,772 605,136 341,672 263,464 
Trademarks and trade names
123,281 — 123,281 123,156 — 123,156 
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 $7.6 million and $9.2 million in the three months ended March 31, 2021 and March 31, 2020, respectively.
The expected amortization of the net carrying amount of finite-lived intangible assets at March 31, 2021 was as follows (in thousands):
Years Ending December 31,Expected Amortization
2021 (nine months)$22,674 
202230,013 
202325,681 
202424,183 
202523,205 
Thereafter131,016 
$256,772 

10

Table of Contents

(8) ACCRUED EXPENSES
Accrued expenses consisted of the following (in thousands):
March 31, 2021December 31, 2020
Accrued insurance$76,153 $77,514 
Accrued interest9,286 19,697 
Accrued compensation and benefits78,928 81,437 
Accrued income, real estate, sales and other taxes30,804 25,843 
Interest rate swap liability28,074 33,630 
Accrued other60,967 57,702 
$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, 2021 through March 31, 2021 were as follows (in thousands):
Landfill
Retirement
Liability
Non-Landfill
Retirement
Liability
Total
Balance at January 1, 2021$48,412 $39,514 $87,926 
Liabilities assumed in acquisitions 451 451 
New asset retirement obligations646  646 
Accretion955 908 1,863 
Changes in estimates recorded to consolidated statement of operations 29 29 
Changes in estimates recorded to consolidated balance sheet 1,045 1,045 
Expenditures(751)(178)(929)
Currency translation and other65 9 74 
Balance at March 31, 2021$49,327 $41,778 $91,105 
In the three months ended 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 three months of 2021 were discounted at the credit-adjusted risk-free rate of 4.84%.

(10) REMEDIAL LIABILITIES 
The changes to remedial liabilities from January 1, 2021 through 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
Balance at January 1, 2021$1,865 $63,060 $49,888 $114,813 
Accretion22 654 414 1,090 
Changes in estimates recorded to consolidated statement of operations17 180 49 246 
Expenditures(12)(950)(1,120)(2,082)
Currency translation and other (812)993 181 
Balance at March 31, 2021$1,892 $62,132 $50,224 $114,248 
In the three months ended March 31, 2021, there were no significant charges (benefits) resulting from changes in estimates for remedial liabilities.

11

Table of Contents

(11) FINANCING ARRANGEMENTS
The following table is a summary of the Company’s financing arrangements (in thousands):
Current Debt:March 31, 2021December 31, 2020
Secured senior term loans ("Term Loans")$7,535 $7,535 
Long-Term Debt:
Secured senior Term Loans due June 30, 2024$717,742 $719,626 
Unsecured senior notes, at 4.875%, due July 15, 2027 ("2027 Notes")
545,000 545,000 
Unsecured senior notes, at 5.125%, due July 15, 2029 ("2029 Notes")
300,000 300,000 
Long-term debt, at par$1,562,742 $1,564,626 
Unamortized debt issuance costs and premium, net(14,225)(14,985)
Long-term debt, at carrying value$1,548,517 $1,549,641 
Financing Activities
As of March 31, 2021 and December 31, 2020, the estimated fair value of the Company’s outstanding long-term debt, including the current portion, was $1.6 billion. The Company’s estimates of fair value of its long-term debt, including the current portion, are based on quoted market prices or other available market data which are considered Level 2 measures according to the fair value hierarchy. Level 2 utilizes quoted market prices in markets that are not active, broker or dealer 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 under which the Company had no outstanding loan balances as of March 31, 2021 and December 31, 2020. As of March 31, 2021, the Company had $270.2 million available to borrow under the revolving credit facility and outstanding letters of credit were $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 March 31, 2021 and December 31, 2020, the Company has recorded a derivative liability with a fair value of $28.1 million and $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.
12

Table of Contents

The Company’s effective tax rate for the three months ended March 31, 2021 was 31.5%, compared to 45.6%, respectively, for the comparable period in 2020.
As of March 31, 2021 and December 31, 2020, the Company had recorded $5.0 million and $5.5 million, respectively, of liabilities for unrecognized tax benefits and $2.2 million and $2.1 million, respectively, of interest.

(13) EARNINGS PER SHARE     
The following are computations of basic and diluted earnings per share (in thousands, except per share amounts):
Three Months Ended
 March 31,
 20212020
Numerator for basic and diluted earnings per share:
Net income$21,736 $11,572 
Denominator:
Basic shares outstanding54,723 55,757 
Dilutive effect of outstanding stock awards320 298 
Dilutive shares outstanding55,043 56,055 
Basic earnings per share:$0.40 $0.21 
  
Diluted earnings per share:$0.39 $0.21 
For the three months ended March 31, 2021 and March 31, 2020, all then outstanding performance awards and restricted stock awards were included in the calculation of diluted earnings per share except for 34,219 and 121,726, respectively, of performance stock awards for which the performance criteria were not attained at the reporting dates and 6,000 and 9,925, respectively, of restricted stock awards which were excluded as their inclusion would have an antidilutive effect.

(14) ACCUMULATED OTHER COMPREHENSIVE LOSS
The changes in accumulated other comprehensive loss by component and related tax impacts for the three months ended March 31, 2021 were as follows (in thousands):    
Foreign Currency TranslationUnrealized Gains (Losses) on Available-For-Sale SecuritiesUnrealized (Loss) Gain on Interest Rate HedgeUnrealized Loss on Unfunded Pension LiabilityTotal
Balance at January 1, 2021$(176,234)$135 $(33,629)$(1,749)$(211,477)
Other comprehensive income (loss) before reclassifications6,466 (94)3,108  9,480 
Amounts reclassified out of accumulated other comprehensive loss  2,448  2,448 
Tax benefit 20   20 
Other comprehensive income (loss)6,466 (74)5,556  11,948 
Balance at March 31, 2021$(169,768)$61 $(28,073)$(1,749)$(199,529)
The amount reclassified out of accumulated other comprehensive loss into the consolidated statement of operations, with presentation location, during the three months ended March 31, 2021 was as follows (in thousands):
Other Comprehensive Income (Loss) ComponentsFor the Three Months Ended March 31, 2021Location
Unrealized loss on interest rate hedge$(2,448)Interest expense, net of interest income

13

Table of Contents

(15) STOCK-BASED COMPENSATION
Total stock-based compensation cost charged to selling, general and administrative expenses for the three months ended March 31, 2021 and March 31, 2020 was $3.5 million and $3.3 million, respectively. The total income tax benefit recognized in the consolidated statements of operations from stock-based compensation expense for the three months ended March 31, 2021 and March 31, 2020 was $0.7 million and $0.8 million, respectively.
Restricted Stock Awards
The following table summarizes information about restricted stock awards for the three months ended March 31, 2021:
Restricted StockNumber of SharesWeighted Average
Grant-Date
Fair Value
Balance at January 1, 2021493,879 $59.74 
Granted6,000 87.22 
Vested(49,578)56.29 
Forfeited(25,205)60.58 
Balance at March 31, 2021425,096 60.48 
As of March 31, 2021, there was $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 2.7 years. The total fair value of restricted stock vested during the three months ended March 31, 2021 and March 31, 2020 was $4.0 million and $5.3 million, respectively.
Performance Stock Awards
Performance stock awards are subject to performance criteria established by the Compensation Committee of the Company's Board of Directors prior to or at the date of grant. The vesting of the performance stock awards is based on achieving targets currently based on revenue, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Total Recordable Incident Rate. In addition, performance stock awards include continued service conditions.
The following table summarizes information about performance stock awards for the three months ended March 31, 2021:
Performance StockNumber of SharesWeighted Average
Grant-Date
Fair Value
Balance at January 1, 2021254,449 $61.75 
Vested(71,815)