| Segment Reporting |
SEGMENT REPORTING In January 2016, we realigned our field support functions by combining our three 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 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 nine months ended September 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 September 30, 2016 | | | | | | | | | | | Group 1 | $ | 1,347.9 |
| | $ | (269.3 | ) | | $ | 1,078.6 |
| | $ | 105.9 |
| | $ | 235.1 |
| | $ | 119.3 |
| | $ | 9,199.3 |
| Group 2 | 1,516.5 |
| | (235.5 | ) | | 1,281.0 |
| | 136.2 |
| | 261.8 |
| | 96.4 |
| | 9,908.9 |
| Corporate entities | 53.2 |
| | (3.5 | ) | | 49.7 |
| | 30.0 |
| | (79.0 | ) | | 11.0 |
| | 1,553.5 |
| Total | $ | 2,917.6 |
| | $ | (508.3 | ) | | $ | 2,409.3 |
| | $ | 272.1 |
| | $ | 417.9 |
| | $ | 226.7 |
| | $ | 20,661.7 |
| Three Months Ended September 30, 2015 | | | | | | | | | | | Group 1 | $ | 1,295.8 |
| | $ | (259.5 | ) | | $ | 1,036.3 |
| | $ | 101.2 |
| | $ | 220.8 |
| | $ | 125.0 |
| | $ | 9,341.5 |
| Group 2 | 1,492.6 |
| | (227.0 | ) | | 1,265.6 |
| | 139.1 |
| | 239.0 |
| | 89.2 |
| | 9,929.2 |
| Corporate entities | 45.5 |
| | (3.4 | ) | | 42.1 |
| | 26.5 |
| | (16.9 | ) | | 18.6 |
| | 1,521.1 |
| Total | $ | 2,833.9 |
| | $ | (489.9 | ) | | $ | 2,344.0 |
| | $ | 266.8 |
| | $ | 442.9 |
| | $ | 232.8 |
| | $ | 20,791.8 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Revenue | | Intercompany Revenue | | Net Revenue | | Depreciation, Amortization, Depletion and Accretion | | Operating Income (Loss) | | Capital Expenditures | | Total Assets | Nine Months Ended September 30, 2016 | | | | | | | | | | | Group 1 | $ | 3,907.9 |
| | $ | (778.7 | ) | | $ | 3,129.2 |
| | $ | 313.0 |
| | $ | 670.2 |
| | $ | 337.8 |
| | $ | 9,199.3 |
| Group 2 | 4,433.4 |
| | (689.8 | ) | | 3,743.6 |
| | 405.3 |
| | 748.4 |
| | 259.1 |
| | 9,908.9 |
| Corporate entities | 145.8 |
| | (10.1 | ) | | 135.7 |
| | 86.7 |
| | (273.0 | ) | | 141.8 |
| | 1,553.5 |
| Total | $ | 8,487.1 |
| | $ | (1,478.6 | ) | | $ | 7,008.5 |
| | $ | 805.0 |
| | $ | 1,145.6 |
| | $ | 738.7 |
| | $ | 20,661.7 |
| Nine Months Ended September 30, 2015 | | | | | | | | | | | Group 1 | $ | 3,764.6 |
| | $ | (753.4 | ) | | $ | 3,011.2 |
| | $ | 295.6 |
| | $ | 642.9 |
| | $ | 318.7 |
| | $ | 9,341.5 |
| Group 2 | 4,347.6 |
| | (655.9 | ) | | 3,691.7 |
| | 408.5 |
| | 717.4 |
| | 266.7 |
| | 9,929.2 |
| Corporate entities | 131.8 |
| | (9.9 | ) | | 121.9 |
| | 81.4 |
| | (155.4 | ) | | 146.6 |
| | 1,521.1 |
| Total | $ | 8,244.0 |
| | $ | (1,419.2 | ) | | $ | 6,824.8 |
| | $ | 785.5 |
| | $ | 1,204.9 |
| | $ | 732.0 |
| | $ | 20,791.8 |
|
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 nine months ended September 30, 2016 and 2015 (in millions of dollars and as a percentage of revenue): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2016 | | 2015 | | 2016 | | 2015 | Collection: | | | | | | | | | | | | | | | | Residential | $ | 564.4 |
| | 23.4 | % | | $ | 564.9 |
| | 24.1 | % | | $ | 1,675.5 |
| | 23.9 | % | | $ | 1,682.4 |
| | 24.7 | % | Small-container commercial | 728.0 |
| | 30.2 |
| | 704.2 |
| | 30.0 |
| | 2,150.6 |
| | 30.7 |
| | 2,098.1 |
| | 30.7 |
| Large-container industrial | 511.7 |
| | 21.2 |
| | 497.2 |
| | 21.2 |
| | 1,480.5 |
| | 21.1 |
| | 1,412.1 |
| | 20.7 |
| Other | 9.4 |
| | 0.4 |
| | 10.9 |
| | 0.5 |
| | 28.3 |
| | 0.4 |
| | 30.2 |
| | 0.4 |
| Total collection | 1,813.5 |
| | 75.2 |
| | 1,777.2 |
| | 75.8 |
| | 5,334.9 |
| | 76.1 |
| | 5,222.8 |
| | 76.5 |
| Transfer | 304.9 |
| | | | 289.3 |
| | | | 869.9 |
| | | | 831.7 |
| | | Less: intercompany | (179.1 | ) | | | | (174.9 | ) | | | | (521.9 | ) | | | | (510.3 | ) | | | Transfer, net | 125.8 |
| | 5.2 |
| | 114.4 |
| | 4.9 |
| | 348.0 |
| | 5.0 |
| | 321.4 |
| | 4.7 |
| Landfill | 543.0 |
| | | | 536.5 |
| | | | 1,568.6 |
| | | | 1,523.9 |
| | | Less: intercompany | (249.7 | ) | | | | (246.4 | ) | | | | (726.9 | ) | | | | (714.3 | ) | | | Landfill, net | 293.3 |
| | 12.2 |
| | 290.1 |
| | 12.4 |
| | 841.7 |
| | 12.0 |
| | 809.6 |
| | 11.9 |
| Energy services | 17.3 |
| | 0.7 |
| | 22.1 |
| | 0.9 |
| | 53.1 |
| | 0.8 |
| | 73.3 |
| | 1.1 |
| Other: | | | | | | | | | | | | | | | | Sale of recycled commodities | 114.6 |
| | 4.8 |
| | 99.4 |
| | 4.2 |
| | 302.8 |
| | 4.3 |
| | 277.7 |
| | 4.1 |
| Other non-core | 44.8 |
| | 1.9 |
| | 40.8 |
| | 1.8 |
| | 128.0 |
| | 1.8 |
| | 120.0 |
| | 1.7 |
| Total other | 159.4 |
| | 6.7 |
| | 140.2 |
| | 6.0 |
| | 430.8 |
| | 6.1 |
| | 397.7 |
| | 5.8 |
| Total revenue | $ | 2,409.3 |
| | 100.0 | % | | $ | 2,344.0 |
| | 100.0 | % | | $ | 7,008.5 |
| | 100.0 | % | | $ | 6,824.8 |
| | 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. |