Company: CLH
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000822818-25-000040
Chunk: 83

Company: CLEAN HARBORS INC
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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,215 Contract liabilities (deferred revenue)91,966 88,545 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, which are generally classified as current. The Company sometimes receives advances or deposits from its customers before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. The contract liability balances at the beginning of each period presented are generally fully recognized in the subsequent three-month period.

(4) BUSINESS COMBINATIONS

2024 AcquisitionsOn March 22, 2024, the Company acquired HEPACO for an all-cash purchase price of $392.2 million, net of cash acquired. The acquisition of HEPACO expanded the Environmental Services segment’s Field Services business.The Company finalized the purchase accounting for this acquisition in the first quarter of 2025. The allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of March 22, 2024. The following table summarizes the preliminary and final determinations and recognition of assets acquired and liabilities assumed (in thousands):At Acquisition Date As Reported December 31, 2024Measurement Period AdjustmentsFinal Allocation At Acquisition DateAccounts receivable, including unbilled receivables$69,072 $(856)$68,216 Inventories and supplies384 — 384 Prepaid expenses and other current assets4,383 (123)4,260 Property, plant and equipment47,125 385 47,510 Permits and other intangibles130,500 — 130,500 Operating lease right-of-use assets9,385 — 9,385 Other long-term assets5,712 1,133 6,845 Accounts payable(30,602)— (30,602)Accrued expenses and other current liabilities(16,005)(300)(16,305)Current portion of operating lease liabilities(2,758)— (2,758)Operating lease liabilities, less current portion(6,627)— (6,627)Closure and post-closure liabilities(