Company: CLH
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000822818-25-000007
Chunk: 211

Company: CLEAN HARBORS INC
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1
Chunk 211
---
 The Company continually reviews its inventories for obsolete or unsalable items and adjusts its carrying value to reflect estimated realizable values.Property, Plant and Equipment, net (excluding landfill assets and finance lease right-of-use assets)Property, plant and equipment, net is stated at cost less accumulated depreciation. Expenditures for major renewals and improvements which extend the life or usefulness of the asset are capitalized. Items of an ordinary repair or maintenance nature are charged directly to operating expense as incurred. During the construction and development period of an asset, the costs incurred, including interest expense, are classified as construction-in-progress. When the asset is ready for its intended use, the asset is reclassified to an appropriate asset classification and depreciation or amortization commences.

57

Table of ContentsCLEAN HARBORS, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company depreciates and amortizes the capitalized cost of these assets, using the straight-line method as follows:Asset ClassificationEstimated Useful LifeBuildings and building improvements Buildings20-42 yearsLeasehold and building improvements2-45 yearsVehicles2-15 yearsEquipment Capitalized software and computer equipment3-5 yearsContainers and railcars8-16 yearsAll other equipment4-30 yearsFurniture and fixtures5-8 yearsGains and losses on the sale of property, plant and equipment are included in Other (expense) income, net. Fully depreciated assets are retained in property, plant and equipment and accumulated depreciation until they are removed from service.The Company tests asset groups for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment in the carrying value of long-lived assets is recognized if the expected future undiscounted cash flows derived from the assets, or group of assets, are less than their carrying value. The Company did not record any impairment charges related to long-lived assets in the periods presented. Business Combinations In accordance with the acquisition method of accounting, the purchase price paid for an acquisition is allocated to the assets and liabilities acquired based upon their estimated fair values as of the acquisition date, with the excess of the purchase price over the net assets acquired recorded as goodwill. As required, a preliminary fair value is determined once a business is acquired, with the final determination of the fair value being completed no later than one year from the date of acquisition. GoodwillGoodwill is comprised of the purchase price of business acquisitions in excess of the fair value of the