Company: CLH
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000822818-25-000007
Chunk: 202

Company: CLEAN HARBORS INC
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1
Chunk 202
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 subjectivity and judgment involved in measuring remedial liabilities, auditing remedial liabilities involved especially subjective judgment and an increased extent of effort, including the need to involve our specialists who have expertise in environmental remediation.

49

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to remedial liabilities included the following, among others:

•We tested the effectiveness of controls related to the recognition and measurement of remedial liabilities, including those controls over changes in estimates.

•We evaluated the methods and assumptions used by management to estimate the remedial liabilities by confirming specific facts and circumstances related to a selection of sites with project managers and other Company personnel responsible for monitoring these sites, including legal counsel.

•With the assistance of auditor specialists who have expertise in environmental matters and specialized skills and training, we evaluated the reasonableness of the Company’s estimates by:

–Searching for information in the public domain for completeness of sites identified for remediation.

–Assessing the completeness of the Company’s cost estimates for a selection of sites, specifically, comparing the cost estimates to relevant regulatory guidelines and specifications.

–Testing the accuracy of the amounts recorded for a selection of sites, specifically, verifying the mathematical accuracy of the calculation, agreeing cost components to supporting documents, and/or developing an independent range of cost estimates.

/s/ Deloitte & Touche LLP 

Boston, MassachusettsFebruary 19, 2025

We have served as the Company's auditor since 2005.

50

CLEAN HARBORS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

 As of December 31, 20242023ASSETSCurrent assets:  Cash and cash equivalents$687,192 $444,698 Short-term marketable securities102,634 106,101 Accounts receivable, net of allowances aggregating $47,242 and $42,209, respectively1,015,357 983,111 Unbilled accounts receivable162,215 107,859 Inventories and supplies384,657 327,511 Prepaid expenses and other current assets81,741 82,939 Total current assets2,433,796 2,052,219 Property, plant and equipment, net2,447,941 2,193,318 Other assets:  Operating lease right-of-use assets250,853 187,060 Goodwill1,477,199 1,287,736