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Segment Reporting | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3. Group 1 is our recycling and solid waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and solid waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada. Group 3 is our environmental solutions business operating primarily in geographic areas located across the United States and Canada. These groups are presented below as our reportable segments, which each provide integrated environmental services, including but not limited to collection, transfer, recycling, and disposal. Adjusted EBITDA is the single financial measure our chief operating decision maker (CODM) uses to evaluate operating segment profitability and determine resource allocations. Summarized financial information concerning our reportable segments for the three months ended September 30, 2023 and 2022 follows:
| Group 1 |  | Group 2 |  | Recycling & Solid Waste Subtotal |  | Group 3 (Environmental Solutions) |  | Corporate entities and other |  | Total
Three Months Ended September 30, 2023
Gross Revenue | $ | 2,000.3 |  |  | $ | 1,927.0 |  |  | $ | 3,927.3 |  |  | $ | 425.2 |  |  | $ | 61.7 |  |  | $ | 4,414.2 |
Intercompany Revenue | (294.6) |  |  | (261.2) |  |  | (555.8) |  |  | (15.3) |  |  | (17.2) |  |  | (588.3) |
Revenue allocations | 25.7 |  |  | 23.9 |  |  | 49.6 |  |  | (5.1) |  |  | (44.5) |  |  | — |
Net Revenue | $ | 1,731.4 |  |  | $ | 1,689.7 |  |  | $ | 3,421.1 |  |  | $ | 404.8 |  |  | $ | — |  |  | $ | 3,825.9 |
Adjusted EBITDA | $ | 553.8 |  |  | $ | 500.2 |  |  | $ | 1,054.0 |  |  | $ | 91.7 |  |  | $ | — |  |  | $ | 1,145.7 |
Capital Expenditures | $ | 165.4 |  |  | $ | 140.7 |  |  | $ | 306.1 |  |  | $ | 25.2 |  |  | $ | 37.7 |  |  | $ | 369.0 |
Total Assets | $ | 13,112.7 |  |  | $ | 10,838.5 |  |  | $ | 23,951.3 |  |  | $ | 4,011.0 |  |  | $ | 2,080.6 |  |  | $ | 30,042.8 |
Three Months Ended September 30, 2022
Gross Revenue | $ | 1,840.6 |  |  | $ | 1,837.4 |  |  | $ | 3,678.0 |  |  | $ | 411.0 |  |  | $ | 64.3 |  |  | $ | 4,153.3 |
Intercompany Revenue | (281.3) |  |  | (246.7) |  |  | (528.0) |  |  | (11.3) |  |  | (16.2) |  |  | (555.5) |
Revenue allocations | 25.8 |  |  | 24.8 |  |  | 50.6 |  |  | (2.5) |  |  | (48.1) |  |  | — |
Net Revenue | $ | 1,585.1 |  |  | $ | 1,615.5 |  |  | $ | 3,200.6 |  |  | $ | 397.2 |  |  | $ | — |  |  | $ | 3,597.8 |
Adjusted EBITDA | $ | 510.6 |  |  | $ | 466.1 |  |  | $ | 976.7 |  |  | $ | 74.6 |  |  | $ | — |  |  | $ | 1,051.3 |
Capital Expenditures | $ | 133.5 |  |  | $ | 115.1 |  |  | $ | 248.6 |  |  | $ | 29.2 |  |  | $ | (0.3) |  |  | $ | 277.5 |
Total Assets | $ | 12,232.0 |  |  | $ | 10,303.0 |  |  | $ | 22,535.0 |  |  | $ | 3,991.7 |  |  | $ | 1,874.3 |  |  | $ | 28,401.0 |
Summarized financial information concerning our reportable segments for the nine months ended September 30, 2023 and 2022 follows:
| Group 1 |  | Group 2 |  | Recycling & Solid Waste Subtotal |  | Group 3 (Environmental Solutions) |  | Corporate entities and other |  | Total
Nine Months Ended September 30, 2023
Gross Revenue | $ | 5,774.3 |  |  | $ | 5,653.2 |  |  | $ | 11,427.5 |  |  | $ | 1,280.4 |  |  | $ | 174.8 |  |  | $ | 12,882.7 |
Intercompany Revenue | (881.1) |  |  | (763.5) |  |  | (1,644.6) |  |  | (47.3) |  |  | (57.9) |  |  | (1,749.8) |
Revenue allocations | 71.0 |  |  | 67.6 |  |  | 138.6 |  |  | (21.7) |  |  | (116.9) |  |  | — |
Net Revenue | $ | 4,964.2 |  |  | $ | 4,957.3 |  |  | $ | 9,921.5 |  |  | $ | 1,211.4 |  |  | $ | — |  |  | $ | 11,132.9 |
Adjusted EBITDA | $ | 1,570.4 |  |  | $ | 1,464.5 |  |  | $ | 3,034.9 |  |  | $ | 267.0 |  |  | $ | — |  |  | $ | 3,301.9 |
Capital Expenditures | $ | 422.0 |  |  | $ | 384.8 |  |  | $ | 806.8 |  |  | $ | 66.4 |  |  | $ | 210.0 |  |  | $ | 1,083.2 |
Total Assets | $ | 13,112.7 |  |  | $ | 10,838.5 |  |  | $ | 23,951.3 |  |  | $ | 4,011.0 |  |  | $ | 2,080.6 |  |  | $ | 30,042.8 |
Nine Months Ended September 30, 2022
Gross Revenue | $ | 5,306.1 |  |  | $ | 5,261.3 |  |  | $ | 10,567.4 |  |  | $ | 827.8 |  |  | $ | 181.7 |  |  | $ | 11,576.9 |
Intercompany Revenue | (815.2) |  |  | (712.9) |  |  | (1,528.1) |  |  | (32.8) |  |  | (34.5) |  |  | (1,595.4) |
Revenue allocations | 77.4 |  |  | 74.1 |  |  | 151.5 |  |  | (4.3) |  |  | (147.2) |  |  | — |
Net Revenue | $ | 4,568.3 |  |  | $ | 4,622.5 |  |  | $ | 9,190.8 |  |  | $ | 790.7 |  |  | $ | — |  |  | $ | 9,981.5 |
Adjusted EBITDA | $ | 1,491.3 |  |  | $ | 1,333.9 |  |  | $ | 2,825.2 |  |  | $ | 139.1 |  |  | $ | — |  |  | $ | 2,964.3 |
Capital Expenditures | $ | 376.5 |  |  | $ | 329.2 |  |  | $ | 705.7 |  |  | $ | 80.4 |  |  | $ | 138.7 |  |  | $ | 924.8 |
Total Assets | $ | 12,232.0 |  |  | $ | 10,303.0 |  |  | $ | 22,535.0 |  |  | $ | 3,991.7 |  |  | $ | 1,874.3 |  |  | $ | 28,401.0 |
Corporate functions include legal, tax, treasury, information technology, risk management, human resources, closed landfills, and other administrative functions. National Accounts revenue included in Corporate entities and other represents the portion of revenue generated from nationwide and regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local operators. Revenue and overhead costs of Corporate entities and other are either specifically assigned or allocated on a rational and consistent basis among our reportable segments to calculate Adjusted EBITDA. As presented in the tables below, Adjusted EBITDA reflects certain adjustments for US Ecology, Inc., acquisition, integration and deal costs, (income) losses from unconsolidated equity method investments, losses on extinguishment of debt, adjustments to withdrawal liabilities for a multiemployer pension fund and restructuring expenses. This presentation is consistent with how our CODM reviews results of operations to make resource allocation decisions. 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 and other primarily include vehicle inventory acquired but not yet assigned to operating locations and facilities. A reconciliation of the Company's single measure of segment profitability (segment Adjusted EBITDA) to Income before income tax provision in the Consolidated Statements of Net Income is as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Group 1 Adjusted EBITDA | $ | 553.8 |  |  | $ | 510.6 |  |  | $ | 1,570.4 |  |  | $ | 1,491.3 |
Group 2 Adjusted EBITDA | 500.2 |  |  | 466.1 |  |  | 1,464.5 |  |  | 1,333.9 |
Group 3 Adjusted EBITDA | 91.7 |  |  | 74.6 |  |  | 267.0 |  |  | 139.1 |
Total Adjusted EBITDA | 1,145.7 |  |  | 1,051.3 |  |  | 3,301.9 |  |  | 2,964.3 |
Other (income) expense, net | (1.3) |  |  | 0.3 |  |  | (3.2) |  |  | 6.5 |
Interest income | (2.0) |  |  | (0.8) |  |  | (5.0) |  |  | (2.0) |
Interest expense | 127.6 |  |  | 105.2 |  |  | 378.8 |  |  | 282.7 |
Depreciation, amortization and depletion | 382.3 |  |  | 353.9 |  |  | 1,099.4 |  | 1,001.8 |
Accretion | 24.6 |  |  | 22.8 |  |  | 73.2 |  |  | 66.9 |
(Income) loss from unconsolidated equity method investment | (2.8) |  |  | 51.8 |  |  | (0.2) |  |  | 69.2 |
Loss on extinguishment of debt and other related costs | — |  |  | — |  |  | 0.2 |  |  | — |
Restructuring charges | 6.3 |  |  | 6.8 |  |  | 27.3 |  |  | 18.8 |
Adjustment to withdrawal liability for a multiemployer pension fund | — |  |  | — |  |  | — |  |  | 2.2 |
US Ecology, Inc. acquisition integration and deal costs | 6.2 |  |  | 8.7 |  |  | 24.3 |  |  | 65.4 |
Gain on business divestitures and impairments, net | (1.5) |  |  | (5.2) |  |  | (1.5) |  |  | (5.3) |
Income before income taxes | $ | 606.3 |  |  | $ | 507.8 |  |  | $ | 1,708.6 |  |  | $ | 1,458.1 |

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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/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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