XML 31 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
Segment Reporting
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Segment Reporting
SEGMENT REPORTING
In January 2016, we realigned our field support functions by combining our regions into two field groups, consolidating our areas and streamlining select operational support roles at our Phoenix headquarters. Following our restructuring, our senior management now evaluates, oversees and manages the financial performance of our operations through two field groups, referred to as Group 1 and Group 2. Group 1 primarily consists of geographic areas located in the western and mid-western United States, and Group 2 primarily consists of geographic areas located in Texas, the southeastern United States and the eastern seaboard of the United States.
We manage and evaluate our operations through the two noted field groups, Group 1 and Group 2. These two groups are presented below as our reportable segments, which provide integrated waste management services consisting of non-hazardous solid waste collection, transfer, recycling, disposal and energy services.
Summarized financial information concerning our reportable segments for the three and six months ended June 30, 2016 and 2015 follows:
 
Gross
Revenue
 
Intercompany
Revenue
 
Net
Revenue
 
Depreciation,
Amortization,
Depletion and
Accretion
 
Operating
Income
(Loss)
 
Capital
Expenditures
 
Total Assets
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
Group 1
$
1,315.0

 
$
(265.1
)
 
$
1,049.9

 
$
104.8

 
$
227.0

 
$
130.8

 
$
9,201.9

Group 2
1,492.4

 
(236.7
)
 
1,255.7

 
136.3

 
249.8

 
95.6

 
9,899.9

Corporate entities
48.6

 
(3.5
)
 
45.1

 
28.8

 
(94.7
)
 
14.1

 
1,543.6

Total
$
2,856.0

 
$
(505.3
)
 
$
2,350.7

 
$
269.9

 
$
382.1

 
$
240.5

 
$
20,645.4

Three Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
Group 1
$
1,279.5

 
$
(260.2
)
 
$
1,019.3

 
$
99.7

 
$
218.1

 
$
114.3

 
$
9,337.7

Group 2
1,480.7

 
(230.1
)
 
1,250.6

 
138.6

 
231.3

 
88.7

 
9,914.6

Corporate entities
45.0

 
(3.5
)
 
41.5

 
27.3

 
(60.2
)
 
26.6

 
1,414.3

Total
$
2,805.2

 
$
(493.8
)
 
$
2,311.4

 
$
265.6

 
$
389.2

 
$
229.6

 
$
20,666.6


 
Gross
Revenue
 
Intercompany
Revenue
 
Net
Revenue
 
Depreciation,
Amortization,
Depletion and
Accretion
 
Operating
Income
(Loss)
 
Capital
Expenditures
 
Total Assets
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
Group 1
$
2,560.0

 
$
(509.5
)
 
$
2,050.5

 
$
207.1

 
$
435.1

 
$
220.3

 
$
9,201.9

Group 2
2,916.8

 
(454.2
)
 
2,462.6

 
269.1

 
486.5

 
164.6

 
9,899.9

Corporate entities
92.7

 
(6.6
)
 
86.1

 
56.7

 
(194.0
)
 
127.1

 
1,543.6

Total
$
5,569.5

 
$
(970.3
)
 
$
4,599.2

 
$
532.9

 
$
727.6

 
$
512.0

 
$
20,645.4

Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
Group 1
$
2,468.8

 
$
(493.9
)
 
$
1,974.9

 
$
194.4

 
$
422.1

 
$
192.9

 
$
9,337.7

Group 2
2,854.9

 
(428.9
)
 
2,426.0

 
269.4

 
478.4

 
177.5

 
9,914.6

Corporate entities
86.4

 
(6.5
)
 
79.9

 
54.9

 
(138.5
)
 
128.8

 
1,414.3

Total
$
5,410.1

 
$
(929.3
)
 
$
4,480.8

 
$
518.7

 
$
762.0

 
$
499.2

 
$
20,666.6


Intercompany revenue reflects transactions within and between segments that generally are made on a basis intended to reflect the market value of such services. Capital expenditures for corporate entities primarily include vehicle inventory acquired but not yet assigned to operating locations and facilities. Corporate functions include legal, tax, treasury, information technology, risk management, human resources, closed landfills and other administrative functions.
The following table shows our total reported revenue by service line for the three and six months ended June 30, 2016 and 2015 (in millions of dollars and as a percentage of revenue):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Collection:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential
$
559.8

 
23.8
%
 
$
565.8

 
24.5
%
 
$
1,110.8

 
24.2
%
 
$
1,117.5

 
24.9
%
Small-container commercial
714.9

 
30.4

 
699.1

 
30.2

 
1,422.7

 
30.9

 
1,393.9

 
31.1

Large-container industrial
499.7

 
21.3

 
480.2

 
20.8

 
968.9

 
21.1

 
914.9

 
20.4

Other
9.7

 
0.4

 
9.9

 
0.4

 
19.0

 
0.4

 
19.2

 
0.4

Total collection
1,784.1

 
75.9

 
1,755.0

 
75.9

 
3,521.4

 
76.6

 
3,445.5

 
76.8

Transfer
296.8

 
 
 
291.3

 
 
 
565.0

 
 
 
542.5

 
 
Less: intercompany
(178.2
)
 
 
 
(177.5
)
 
 
 
(342.7
)
 
 
 
(335.3
)
 
 
Transfer, net
118.6

 
5.0

 
113.8

 
4.9

 
222.3

 
4.8

 
207.2

 
4.6

Landfill
536.2

 
 
 
531.3

 
 
 
1,025.6

 
 
 
987.4

 
 
Less: intercompany
(249.6
)
 
 
 
(250.3
)
 
 
 
(477.3
)
 
 
 
(467.8
)
 
 
Landfill, net
286.6

 
12.2

 
281.0

 
12.2

 
548.3

 
11.9

 
519.6

 
11.6

Energy services
17.2

 
0.7

 
27.1

 
1.2

 
35.8

 
0.8

 
51.2

 
1.2

Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sale of recycled commodities
101.4

 
4.3

 
92.9

 
4.0

 
188.2

 
4.1

 
178.3

 
4.0

Other non-core
42.8

 
1.9

 
41.6

 
1.8

 
83.2

 
1.8

 
79.0

 
1.8

Total other
144.2

 
6.2

 
134.5

 
5.8

 
271.4

 
5.9

 
257.3

 
5.8

Total revenue
$
2,350.7

 
100.0
%
 
$
2,311.4

 
100.0
%
 
$
4,599.2

 
100.0
%
 
$
4,480.8

 
100.0
%

Other non-core revenue consists primarily of revenue from National Accounts, which represents the portion of revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated waste handling services are subcontracted to local operators. Consequently, substantially all of this revenue is offset with related subcontract costs, which are recorded in cost of operations.