v2.4.0.6
Segment Reporting
 12 Months Ended
Dec. 31, 2011
Segment Reporting [Abstract]  
SEGMENT REPORTING

14. SEGMENT REPORTING

Our operations are managed and evaluated through four regions: Eastern, Midwestern, Southern and Western. These four regions are presented below as our reportable segments. These reportable segments provide integrated waste management services consisting of collection, transfer station, recycling and disposal of domestic non-hazardous solid waste. Summarized financial information concerning our reportable segments for the years ended December 31, 2011, 2010 and 2009 is shown in the following table:

 

                                                         
    Gross
Revenue		     Intercompany
Revenue		     Net
Revenue		     Depreciation,
Amortization,
Depletion and
Accretion		     Operating
Income
(Loss)		     Capital
Expenditures		     Total Assets  

2011:

                                                        

Eastern

   $ 2,469.2     $ (366.1 )    $ 2,103.1     $ 202.4     $ 493.0     $ 219.9     $ 4,457.0  

Midwestern

     2,197.4       (390.9 )      1,806.5       206.5       375.9       218.0       3,794.4  

Southern

     2,343.0       (313.1 )      2,029.9       229.9       460.7       229.3       4,907.7  

Western

     2,619.2       (463.5 )      2,155.7       220.5       486.4       267.4       5,539.0  

Corporate entities

     114.0       (16.3 )      97.7       62.3       (263.3 )      1.9       853.4  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 9,742.8     $ (1,549.9 )    $ 8,192.9     $ 921.6     $ 1,552.7     $ 936.5     $ 19,551.5  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

2010:

                                                        

Eastern

   $ 2,429.3     $ (353.8 )    $ 2,075.5     $ 205.5     $ 488.4     $ 175.3     $ 4,437.1  

Midwestern

     2,167.4       (400.5 )      1,766.9       203.6       402.0       210.7       3,718.0  

Southern

     2,289.0       (311.7 )      1,977.3       221.5       482.8       190.4       4,869.7  

Western

     2,684.6       (496.0 )      2,188.6       218.2       521.2       222.3       5,518.5  

Corporate entities

     115.7       (17.4 )      98.3       65.4       (355.3 )      (4.0 )      918.6  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 9,686.0     $ (1,579.4 )    $ 8,106.6     $ 914.2     $ 1,539.1     $ 794.7     $ 19,461.9  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

2009:

                                                        

Eastern

   $ 2,485.9     $ (370.9 )    $ 2,115.0     $ 214.3     $ 483.0     $ 199.1     $ 4,495.1  

Midwestern

     2,185.4       (408.4 )      1,777.0       225.9       367.3       208.7       3,605.9  

Southern

     2,371.7       (325.5 )      2,046.2       233.1       522.9       168.5       4,867.6  

Western

     2,652.4       (482.4 )      2,170.0       234.9       582.0       180.5       5,461.2  

Corporate entities

     123.6       (32.7 )      90.9       50.3       (365.4 )      69.5       1,110.5  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 9,819.0     $ (1,619.9 )    $ 8,199.1     $ 958.5     $ 1,589.8     $ 826.3     $ 19,540.3  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Intercompany revenue reflects transactions within and between segments that are generally made on a basis intended to reflect the market value of such services.

Depreciation, amortization, depletion and accretion includes net decreases in amortization expense of $9.6 million, $10.2 million, and $5.1 million for 2011, 2010 and 2009, respectively, primarily related to changes in estimates and assumptions concerning the airspace consumed, cost and timing of future final capping, closure and post-closure activities.

The following items are included in the above segment information:

 

  •  

Eastern Region.    For 2011, operating income includes a $12.8 million of asset impairment expense primarily related to assets held for sale at December 31, 2011 offset by $0.6 million net gain from the disposition of assets. For 2010, operating income includes a $15.0 million loss from the disposition of assets. For 2009, operating income includes a $4.0 million net gain from the disposition of assets and $12.0 million of insurance proceeds related to remediation costs at the Countywide facility.

 

  •  

Midwestern Region.    For 2010, operating income includes a $9.3 million net gain from the disposition of assets. For 2009, operating income includes a $27.1 million net gain from the disposition of assets.

 

  •  

Southern Region.    For 2011, operating income includes $17.2 million net gain from the disposition of assets offset by $28.7 million of asset impairment expense associated a closed landfill site. For 2009, operating income includes a $29.8 million net gain from the disposition of assets.

 

  •  

Western Region.    For 2011, operating income includes $1.8 million net gain from the disposition of assets offset by $7.0 million of asset impairment expense incurred in connection with the divestiture of certain businesses and related goodwill. For 2009, operating income includes an $88.1 million net gain from the disposition of assets and remediation charges totaling $5.2 million related to environmental conditions at our closed disposal facility in California.

 

  •  

Corporate Entities.    Corporate functions include legal, tax, treasury, information technology, risk management, human resources, closed landfills, and other typical administrative functions. Operating loss improved $91.9 million in 2011 versus 2010. For 2010, operating income includes $33.3 million of incremental costs to achieve our synergy plan and $11.4 million of restructuring and integration charges related to our acquisition of Allied. Operating margins for 2010 also were impacted by higher litigation and management incentive plan costs. Additionally, during 2011 we recorded a gain on the disposition of assets and impairments of $1.1 million versus an impairment loss of $14.4 million related to certain long lived assets that were held and used for 2010. Capital expenditures for corporate entities primarily include vehicle inventory acquired but not yet assigned to operating locations and facilities.

The following table shows our total reported revenue by line of business for the respective years ended December 31. Intercompany revenue has been eliminated.

 

                                                 
    2011     2010     2009  

Collection:

                                                

Residential

   $ 2,135.7       26.1  %    $ 2,173.9       26.8  %    $ 2,187.0       26.7 % 

Commercial

     2,487.5       30.4       2,486.8       30.7       2,553.4       31.1  

Industrial

     1,515.4       18.5       1,482.9       18.3       1,541.4       18.8  

Other

     32.9       0.4       29.6       0.4       26.9       0.3  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total collection

     6,171.5       75.4       6,173.2       76.2       6,308.7       76.9  

Transfer

     978.0               1,030.3               1,111.1          

Less: Intercompany

     (556.6 )              (587.9 )              (611.2 )         
   

 

 

            

 

 

            

 

 

          

Transfer, net

     421.4       5.1       442.4       5.4       499.9       6.1  

Landfill

     1,867.6               1,865.8               1,892.5          

Less: Intercompany

     (846.9 )              (861.7 )              (891.6 )         
   

 

 

            

 

 

            

 

 

          

Landfill, net

     1,020.7       12.5       1,004.1       12.4       1,000.9       12.2  

Sale of recyclable materials

     438.6       5.4       337.9       4.2       229.8       2.8  

Other non-core

     140.7       1.6       149.0       1.8       159.8       2.0  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other

     579.3       7.0       486.9       6.0       389.6       4.8  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

   $ 8,192.9       100.0  %    $ 8,106.6       100.0  %    $ 8,199.1       100.0 % 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

Other revenue consists primarily of sales of recyclable materials and revenue from National Accounts acquired from Allied. National Accounts revenue included in other revenue represents the portion of revenue generated from nationwide contracts in markets outside our operating areas, and 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.