Revenue

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE

Our operations primarily consist of providing collection, transfer and disposal of non-hazardous solid waste, recovering and recycling of certain materials, and environmental services. The following table disaggregates our revenue by service line for the three months ended March 31, 2020 and 2019 (in millions of dollars and as a percentage of revenue):


	Three Months Ended March 31,
	2020						2019
Collection:
Residential	$	568.5	22.3	%	$	557.4	22.6	%
Small-container	805.7		31.5		777.9		31.5
Large-container	552.4		21.6		530.7		21.5
Other	12.3		0.5		10.8		0.4
Total collection	1,938.9		75.9		1,876.8		76.0
Transfer	323.0				294.9
Less: intercompany	(186.0)				(172.0)
Transfer, net	137.0		5.4		122.9		5.0
Landfill	558.3				536.4
Less: intercompany	(252.3)				(239.6)
Landfill, net	306.0		12.0		296.8		12.0
Environmental services	46.8		1.8		45.0		1.8
Other:
Recycling processing and commodity sales	67.1		2.6		72.9		3.0
Other non-core	58.1		2.3		56.2		2.2
Total other	125.2		4.9		129.1		5.2
Total revenue	$	2,553.9	100.0	%	$	2,470.6	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.

The factors that impact the timing and amount of revenue recognized for each service line may vary based on the nature of the service performed. Generally, we recognize revenue at the time we perform a service. In the event that we bill for services in advance of performance, we recognize deferred revenue for the amount billed and subsequently recognize revenue at the time the service is provided. Substantially all of the deferred revenue recognized as of December 31, 2019 was recognized as revenue during the three months ended March 31, 2020 when the service was performed.

See Note 12, Segment Reporting, for additional information regarding revenue by reportable segment.

Revenue Recognition

Our service obligations of a long-term nature, e.g., certain solid waste collection service contracts, are satisfied over time, and we recognize revenue based on the value provided to the customer during the period. The amount billed to the customer is based on variable elements such as the number of residential homes or businesses for which collection services are provided, the volume of waste collected, transported and disposed, and the nature of the waste accepted. We do not disclose the value of unsatisfied performance obligations for these contracts as our right to consideration corresponds directly to the value provided to the customer for services completed to date and all future variable consideration is allocated to wholly unsatisfied performance obligations.

Additionally, certain elements of our long-term customer contracts are unknown upon entering into the contract, including the amount that will be billed in accordance with annual price escalation clauses, our fuel recovery fee program and commodity

prices. The amount to be billed is often tied to changes in an underlying base index such as a consumer price index or a fuel or commodity index, and revenue can be recognized once the index is established for the period.

Deferred Contract Costs

We incur certain upfront payments to acquire customer contracts which are recognized as other assets in our consolidated balance sheet, and we amortize the asset over the respective contract life. In addition, we recognize sales commissions that represent an incremental cost of the contract as other assets in our consolidated balance sheets, and we amortize the asset over the average life of the customer relationship. As of March 31, 2020 and December 31, 2019, we recognized $80.6 million and $83.1 million, respectively, of deferred contract costs and capitalized sales commissions. During each of the three months ended March 31, 2020 and 2019, we amortized $3.0 million of capitalized sales commissions to selling, general and administrative expenses. During the three months ended March 31, 2020 and 2019, we amortized $1.6 million and $1.5 million, respectively, of other deferred contract costs as a reduction of revenue.