Segment Reporting

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

11.SEGMENT REPORTING

The Company’s revenues are generated from the collection, transfer, recycling and disposal of non-hazardous solid waste and the treatment, recovery and disposal of non-hazardous E&P waste. No single contract or customer accounted for more than 10% of the Company’s total revenues at the consolidated or reportable segment level during the periods presented.

The Company manages its operations through the following five geographic solid waste operating segments: Eastern, Southern, Western, Central and Canada.  The Company’s five geographic solid waste operating segments comprise its

reportable segments.  Each operating segment is responsible for managing several vertically integrated operations, which are comprised of districts.  

The Company’s Chief Operating Decision Maker evaluates operating segment profitability and determines resource allocations based on several factors, of which the primary financial measure is segment EBITDA. The Company defines segment EBITDA as earnings before interest, taxes, depreciation, amortization, impairments and other operating items, and other income (expense). Segment EBITDA is not a measure of operating income, operating performance or liquidity under GAAP and may not be comparable to similarly titled measures reported by other companies. The Company’s management uses segment EBITDA in the evaluation of segment operating performance as it is a profit measure that is generally within the control of the operating segments. A reconciliation of segment EBITDA to Income before income tax provision is included at the end of this Note 11.

Summarized financial information concerning the Company’s reportable segments for the three and nine months ended September 30, 2022 and 2021, is shown in the following tables:

Three Months Ended			Intercompany		Reported		Segment
September 30, 2022	Revenue		Revenue(b)		Revenue		EBITDA(c)
Eastern	$	595,696	$	(94,644)	$	501,052	$	133,393
Southern		479,758		(51,392)		428,366		130,668
Western		428,271		(42,792)		385,479		115,701
Central		364,470		(41,813)		322,657		116,337
Canada		270,041		(27,727)		242,314		87,910
Corporate(a)		—		—		—		(11,657)
	$	2,138,236	$	(258,368)	$	1,879,868	$	572,352

Three Months Ended			Intercompany		Reported		Segment
September 30, 2021	Revenue		Revenue(b)		Revenue		EBITDA(c)
Eastern	$	470,637	$	(74,408)	$	396,229	$	106,908
Southern		418,917		(47,959)		370,958		99,612
Western		371,846		(39,826)		332,020		108,280
Central		310,551		(36,869)		273,682		95,026
Canada		251,897		(27,618)		224,279		92,275
Corporate(a)		—		—		—		(6,551)
	$	1,823,848	$	(226,680)	$	1,597,168	$	495,550

Nine Months Ended			Intercompany		Reported		Segment
September 30, 2022	Revenue		Revenue(b)		Revenue		EBITDA(c)
Eastern	$	1,664,120	$	(262,733)	$	1,401,387	$	367,223
Southern		1,375,785		(143,891)		1,231,894		363,785
Western		1,222,412		(129,300)		1,093,112		331,049
Central		1,022,470		(113,709)		908,761		317,397
Canada		789,531		(82,127)		707,404		265,402
Corporate(a)		—		—		—		(19,042)
	$	6,074,318	$	(731,760)	$	5,342,558	$	1,625,814

Nine Months Ended			Intercompany		Reported		Segment
September 30, 2021	Revenue		Revenue(b)		Revenue		EBITDA(c)
Eastern	$	1,310,265	$	(207,958)	$	1,102,307	$	295,411
Southern		1,214,798		(142,342)		1,072,456		291,964
Western		1,056,482		(113,669)		942,813		301,507
Central		882,159		(106,246)		775,913		268,952
Canada		711,281		(77,728)		633,553		254,857
Corporate(a)		—		—		—		(13,743)
	$	5,174,985	$	(647,943)	$	4,527,042	$	1,398,948

____________________

(a) The majority of Corporate expenses are allocated to the five operating segments.  Direct acquisition expenses, expenses associated with common shares held in the deferred compensation plan exchanged for other investment options and share-based compensation expenses associated with Progressive Waste share-based grants outstanding at June 1, 2016 that were continued by the Company are not allocated to the five operating segments and comprise the net EBITDA of the Company’s Corporate segment for the periods presented.

(b) Intercompany revenues reflect each segment’s total intercompany sales, including intercompany sales within a segment and between segments. Transactions within and between segments are generally made on a basis intended to reflect the market value of the service.

(c) For those items included in the determination of segment EBITDA, the accounting policies of the segments are the same as those described in the Company’s most recent Annual Report on Form 10-K.

Total assets for each of the Company’s reportable segments at September 30, 2022 and December 31, 2021, were as follows:

	September 30,		December 31,
	2022		2021
Eastern	$	4,076,614	$	3,652,311
Southern		3,718,418		3,513,355
Western		2,542,731		2,260,222
Central		2,680,170		2,332,564
Canada		2,557,822		2,513,608
Corporate		554,913		427,864
Total Assets	$	16,130,668	$	14,699,924

The following tables show changes in goodwill during the nine months ended September 30, 2022 and 2021, by reportable segment:

	Eastern		Southern		Western		Central		Canada		Total
Balance as of December 31, 2021	$	1,607,723	$	1,588,467	$	539,732	$	892,209	$	1,559,512	$	6,187,643
Goodwill acquired		182,697		83,970		8,060		73,788		167,926		516,441
Impact of changes in foreign currency		—		—		—		—		(129,224)		(129,224)
Balance as of September 30, 2022	$	1,790,420	$	1,672,437	$	547,792	$	965,997	$	1,598,214	$	6,574,860

	Eastern		Southern		Western		Central		Canada		Total
Balance as of December 31, 2020	$	1,374,577	$	1,532,215	$	442,862	$	824,204	$	1,552,792	$	5,726,650
Goodwill acquired		169,561		2,970		60,999		47,344		—		280,874
Goodwill acquisition adjustments		—		—		—		—		(2)		(2)
Impact of changes in foreign currency		—		—		—		—		(989)		(989)
Balance as of September 30, 2021	$	1,544,138	$	1,535,185	$	503,861	$	871,548	$	1,551,801	$	6,006,533

A reconciliation of the Company’s primary measure of segment profitability (segment EBITDA) to Income before income tax provision in the Condensed Consolidated Statements of Net Income is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Eastern segment EBITDA	$	133,393	$	106,908	$	367,223	$	295,411
Southern segment EBITDA		130,668		99,612		363,785		291,964
Western segment EBITDA		115,701		108,280		331,049		301,507
Central segment EBITDA		116,337		95,026		317,397		268,952
Canada segment EBITDA		87,910		92,275		265,402		254,857
Subtotal reportable segments		584,009		502,101		1,644,856		1,412,691
Unallocated corporate overhead		(11,657)		(6,551)		(19,042)		(13,743)
Depreciation		(193,287)		(171,965)		(562,174)		(498,588)
Amortization of intangibles		(38,859)		(35,337)		(113,956)		(100,237)
Impairments and other operating items		(13,438)		(3,104)		(19,467)		(9,819)
Interest expense		(51,161)		(40,418)		(137,565)		(124,171)
Interest income		1,784		495		2,574		2,342
Other income (expense), net		8,487		3,140		2,373		5,452
Loss on early extinguishment of debt		—		(115,288)		—		(115,288)
Income before income tax provision	$	285,878	$	133,073	$	797,599	$	558,639