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Segment and Related Information | 9 Months Ended
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Sep. 30, 2017
Segment and Related Information |
Segment and Related Information | 7. Segment and Related Information We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our 17 Areas. The 17 Areas constitute our operating segments and none of the Areas individually meet the quantitative criteria to be a separate reportable segment. We have evaluated the aggregation criteria and concluded that, based on the similarities between our Areas, including the fact that our Solid Waste business is homogenous across geographies with the same services offered across the Areas, aggregation of our Areas is appropriate for purposes of presenting our reportable segments. Accordingly, we have aggregated our 17 Areas into three tiers that we believe have similar economic characteristics and future prospects based in large part on a review of the Areas’ income from operations margins. The economic variations experienced by our Areas are attributable to a variety of factors, including regulatory environment of the Area; economic environment of the Area, including level of commercial and industrial activity; population density; service offering mix and disposal logistics, with no one factor being singularly determinative of an Area’s current or future economic performance. Tier 1 is comprised of our operations across the Southern United States, with the exception of Southern California and the Florida peninsula, and also includes the New England states, the tri-state area of Michigan, Indiana and Ohio, and Western Canada. Tier 2 includes Southern California, Eastern Canada, Wisconsin, Minnesota and a portion of the lower Mid-Atlantic region of the United States. Tier 3 encompasses all the remaining operations including the Pacific Northwest and Northern California, the majority of the Mid-Atlantic region of the United States, the Florida peninsula, Illinois and Missouri. The operating segments not evaluated and overseen through the 17 Areas are presented herein as “Other” as these operating segments do not meet the criteria to be aggregated with other operating segments and do not meet the quantitative criteria to be separately reported. Summarized financial information concerning our reportable segments is shown in the following table (in millions):
|  | Gross |  | Intercompany |  | Net |  | Income
|  | Operating |  | Operating |  | Operating |  | from
|  | Revenues |  | Revenues |  | Revenues |  | Operations
Three Months Ended September 30: |  |  |  |  |  |  |  |  |  |  |  |
2017 |  |  |  |  |  |  |  |  |  |  |  |
Solid Waste: |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 |  | $ | 1,432 |  | $ | (258) |  | $ | 1,174 |  | $ | 398
Tier 2 |  |  | 924 |  |  | (171) |  |  | 753 |  |  | 180
Tier 3 |  |  | 1,447 |  |  | (256) |  |  | 1,191 |  |  | 275
Solid Waste |  |  | 3,803 |  |  | (685) |  |  | 3,118 |  |  | 853
Other |  |  | 662 |  |  | (64) |  |  | 598 |  |  | (16)
|  |  | 4,465 |  |  | (749) |  |  | 3,716 |  |  | 837
Corporate and Other |  |  | — |  |  | — |  |  | — |  |  | (136)
Total |  | $ | 4,465 |  | $ | (749) |  | $ | 3,716 |  | $ | 701
2016 |  |  |  |  |  |  |  |  |  |  |  |
Solid Waste: |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 |  | $ | 1,364 |  | $ | (238) |  | $ | 1,126 |  | $ | 369
Tier 2 |  |  | 885 |  |  | (162) |  |  | 723 |  |  | 121
Tier 3 |  |  | 1,382 |  |  | (241) |  |  | 1,141 |  |  | 238
Solid Waste |  |  | 3,631 |  |  | (641) |  |  | 2,990 |  |  | 728
Other |  |  | 608 |  |  | (50) |  |  | 558 |  |  | (30)
|  |  | 4,239 |  |  | (691) |  |  | 3,548 |  |  | 698
Corporate and Other |  |  | — |  |  | — |  |  | — |  |  | (138)
Total |  | $ | 4,239 |  | $ | (691) |  | $ | 3,548 |  | $ | 560
|  | Gross |  | Intercompany |  | Net |  | Income
|  | Operating |  | Operating |  | Operating |  | from
|  | Revenues |  | Revenues |  | Revenues |  | Operations
Nine Months Ended September 30: |  |  |  |  |  |  |  |  |  |  |  |
2017 |  |  |  |  |  |  |  |  |  |  |  |
Solid Waste: |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 |  | $ | 4,189 |  | $ | (754) |  | $ | 3,435 |  | $ | 1,159
Tier 2 |  |  | 2,682 |  |  | (493) |  |  | 2,189 |  |  | 527
Tier 3 |  |  | 4,200 |  |  | (745) |  |  | 3,455 |  |  | 750
Solid Waste |  |  | 11,071 |  |  | (1,992) |  |  | 9,079 |  |  | 2,436
Other |  |  | 1,922 |  |  | (168) |  |  | 1,754 |  |  | (66)
|  |  | 12,993 |  |  | (2,160) |  |  | 10,833 |  |  | 2,370
Corporate and Other |  |  | — |  |  | — |  |  | — |  |  | (438)
Total |  | $ | 12,993 |  | $ | (2,160) |  | $ | 10,833 |  | $ | 1,932
2016 |  |  |  |  |  |  |  |  |  |  |  |
Solid Waste: |  |  |  |  |  |  |  |  |  |  |  |
Tier 1 |  | $ | 3,921 |  | $ | (679) |  | $ | 3,242 |  | $ | 1,065
Tier 2 |  |  | 2,522 |  |  | (462) |  |  | 2,060 |  |  | 423
Tier 3 |  |  | 3,989 |  |  | (686) |  |  | 3,303 |  |  | 681
Solid Waste |  |  | 10,432 |  |  | (1,827) |  |  | 8,605 |  |  | 2,169
Other |  |  | 1,680 |  |  | (136) |  |  | 1,544 |  |  | (86)
|  |  | 12,112 |  |  | (1,963) |  |  | 10,149 |  |  | 2,083
Corporate and Other |  |  | — |  |  | — |  |  | — |  |  | (404)
Total |  | $ | 12,112 |  | $ | (1,963) |  | $ | 10,149 |  | $ | 1,679
Fluctuations in our operating results may be caused by many factors, including period-to-period changes in the relative contribution of revenue by each line of business, changes in commodity prices and general economic conditions. In addition, our revenues and income from operations typically reflect seasonal patterns. Our operating revenues tend to be somewhat higher in summer months, primarily due to the higher construction and demolition waste volumes. The volumes of industrial and residential waste in certain regions where we operate also tend to increase during the summer months. Our second and third quarter revenues and results of operations typically reflect these seasonal trends. Service disruptions caused by severe storms, extended periods of inclement weather or climate extremes resulting from climate change can significantly affect the operating results of the Areas affected. On the other hand, certain destructive weather conditions that tend to occur during the second half of the year, such as the hurricanes that most often impact our operations in the Southern and Eastern United States, can increase our revenues in the Areas affected. While weather conditions and other event driven special projects can boost revenues through additional work for a limited time, as a result of significant start-up costs and other factors, such revenue can generate earnings at comparatively lower margins.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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