11.SEGMENT REPORTING

The Company’s revenues are generated from the collection, transfer, recycling and disposal of non-hazardous solid waste and the treatment, recovery and disposal of non-hazardous E&P waste. No single contract or customer accounted for more than 10% of the Company’s total revenues at the consolidated or reportable segment level during the periods presented.

The Company manages its operations through five geographic operating segments and its E&P segment, which includes the majority of the Company’s E&P waste treatment and disposal operations. The Company’s five geographic operating segments and its E&P segment comprise the Company’s reportable segments. Each operating segment is responsible for managing several vertically integrated operations, which are comprised of districts.

The Company’s Southern segment services customers located in Alabama, Arkansas, Florida, Louisiana, Mississippi, southern Oklahoma, western Tennessee and Texas; the Company’s Western segment services customers located in Alaska, California, Idaho, Montana, Nevada, Oregon, Washington and western Wyoming; the Company’s Eastern segment services customers located in Illinois, Iowa, Kentucky, Maryland, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, eastern Tennessee, Vermont, Virginia and Wisconsin; the Company’s Canada segment services customers located in the state of Michigan and in the provinces of Alberta, British Columbia, Manitoba, Ontario, Québec and Saskatchewan; and the Company’s Central segment services customers located in Arizona, Colorado, Kansas, Minnesota, Missouri, Nebraska, New Mexico, Oklahoma, South Dakota, western Texas, Utah and eastern Wyoming. The E&P segment services E&P customers located in Arkansas, Louisiana, New Mexico, North Dakota, Oklahoma, Texas, Wyoming and along the Gulf of Mexico.

The Company’s Chief Operating Decision Maker evaluates operating segment profitability and determines resource allocations based on several factors, of which the primary financial measure is segment EBITDA. The Company defines segment EBITDA as earnings before interest, taxes, depreciation, amortization, impairments and other operating items, other income (expense) and foreign currency transaction gain (loss). Segment EBITDA is not a measure of operating income, operating performance or liquidity under GAAP and may not be comparable to similarly titled measures reported by other companies. The Company’s management uses segment EBITDA in the evaluation of segment operating performance as it is a profit measure that is generally within the control of the operating segments. A reconciliation of segment EBITDA to Income before income tax provision is included at the end of this Note 11.

Summarized financial information concerning the Company’s reportable segments for the three and nine months ended September 30, 2018 and 2017, is shown in the following tables:


Three Months Ended September 30, 2018	Revenue		Intercompany Revenue(b)		Reported Revenue		Segment EBITDA(c)
Southern	$	321,306	$	(38,266)	$	283,040	$	70,159
Western		303,614		(32,596)		271,018		86,174
Eastern		353,844		(64,347)		289,497		83,721
Canada		211,682		(24,628)		187,054		68,819
Central		213,492		(28,221)		185,271		70,288
E&P		67,348		(2,118)		65,230		35,099
Corporate(a)		-		-		-		(8,286)
	$	1,471,286	$	(190,176)	$	1,281,110	$	405,974


Three Months Ended September 30, 2017	Revenue		Intercompany Revenue(b)		Reported Revenue		Segment EBITDA(c)
Southern	$	317,059	$	(36,531)	$	280,528	$	63,171
Western		292,222		(30,345)		261,877		84,861
Eastern		292,124		(45,857)		246,267		74,018
Canada		224,166		(27,111)		197,055		74,369
Central		190,210		(23,850)		166,360		64,607
E&P		56,209		(1,818)		54,391		27,881
Corporate(a)		-		-		-		(5,751)
	$	1,371,990	$	(165,512)	$	1,206,478	$	383,156


Nine Months Ended September 30, 2018	Revenue		Intercompany Revenue(b)		Reported Revenue		Segment EBITDA(c)
Southern	$	951,313	$	(111,824)	$	839,489	$	207,853
Western		874,464		(94,584)		779,880		240,006
Eastern		966,571		(164,253)		802,318		225,950
Canada		615,157		(71,290)		543,867		195,390
Central		591,417		(77,337)		514,080		191,840
E&P		186,734		(5,159)		181,575		95,009
Corporate(a)		-		-		-		(14,368)
	$	4,185,656	$	(524,447)	$	3,661,209	$	1,141,680


Nine Months Ended September 30, 2017	Revenue		Intercompany Revenue(b)		Reported Revenue		Segment EBITDA(c)
Southern	$	957,506	$	(111,472)	$	846,034	$	199,280
Western		845,176		(90,217)		754,959		247,475
Eastern		851,880		(133,578)		718,302		209,315
Canada		621,995		(75,846)		546,149		200,283
Central		536,803		(66,716)		470,087		177,975
E&P		143,951		(6,169)		137,782		63,518
Corporate(a)		-		-		-		(32,535)
	$	3,957,311	$	(483,998)	$	3,473,313	$	1,065,311

____________________

(a)Corporate functions include accounting, legal, tax, treasury, information technology, risk management, human resources, training and other administrative functions. Amounts reflected are net of allocations to the six operating segments.

(b)Intercompany revenues reflect each segment’s total intercompany sales, including intercompany sales within a segment and between segments. Transactions within and between segments are generally made on a basis intended to reflect the market value of the service.

(c)For those items included in the determination of segment EBITDA, the accounting policies of the segments are the same as those described in the Company’s most recent Annual Report on Form 10-K.

Total assets for each of the Company’s reportable segments at September 30, 2018 and December 31, 2017, were as follows:


	September 30, 2018		December 31, 2017
Southern	$	2,778,123	$	2,718,296
Western		1,583,561		1,573,955
Eastern		2,348,438		2,024,527
Canada		2,562,659		2,677,557
Central		1,452,607		1,297,118
E&P		974,049		981,980
Corporate		492,629		741,248
Total Assets	$	12,192,066	$	12,014,681

The following tables show changes in goodwill during the nine months ended September 30, 2018 and 2017, by reportable segment:



	Southern		Western		Eastern		Canada		Central		E&P			Total
Balance as of December 31, 2017	$	1,436,320	$	397,508	$	804,133	$	1,575,538	$	468,275	$	-	$	4,681,774
Goodwill acquired		4,800		666		122,136		151		42,197		-		169,950
Goodwill adjustment for assets held for sale		10,194		-		-		-		-		-		10,194
Impact of changes in foreign currency		-		-		-		(48,622)		-		-		(48,622)
Balance as of September 30, 2018	$	1,451,314	$	398,174	$	926,269	$	1,527,067	$	510,472	$	-	$	4,813,296



	Southern		Western		Eastern		Canada		Central		E&P			Total
Balance as of December 31, 2016	$	1,470,023	$	376,537	$	533,160	$	1,465,274	$	467,924	$	77,343	$	4,390,261
Goodwill acquired		7,484		20,906		272,501		7,127		1,013		-		309,031
Goodwill divested		(31,543)		-		(4,276)		-		(667)		-		(36,486)
Impairment loss		-		-		-		-		-		(77,343)		(77,343)
Goodwill adjustment for assets sold		2,205		-		321		-		-		-		2,526
Goodwill adjustment for assets held for sale		(11,080)		-		-		-		-		-		(11,080)
Impact of changes in foreign currency		-		-		-		111,439		-		-		111,439
Balance as of September 30, 2017	$	1,437,089	$	397,443	$	801,706	$	1,583,840	$	468,270	$	-	$	4,688,348

A reconciliation of the Company’s primary measure of segment profitability (segment EBITDA) to Income before income tax provision in the Condensed Consolidated Statements of Net Income is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017
Southern segment EBITDA	$	70,159	$	63,171	$	207,853	$	199,280
Western segment EBITDA		86,174		84,861		240,006		247,475
Eastern segment EBITDA		83,721		74,018		225,950		209,315
Canada segment EBITDA		68,819		74,369		195,390		200,283
Central segment EBITDA		70,288		64,607		191,840		177,975
E&P segment EBITDA		35,099		27,881		95,009		63,518
Subtotal reportable segments		414,260		388,907		1,156,048		1,097,846
Unallocated corporate overhead		(8,286)		(5,751)		(14,368)		(32,535)
Depreciation		(148,232)		(136,941)		(423,866)		(395,008)
Amortization of intangibles		(26,871)		(26,613)		(79,444)		(76,886)
Impairments and other operating items		1,998		(832)		(6,106)		(141,333)
Interest expense		(32,078)		(32,471)		(96,874)		(92,763)
Interest income		1,467		1,656		3,677		3,131
Other income, net		732		1,709		2,376		3,561
Foreign currency transaction loss		(132)		(1,864)		(323)		(3,502)
Income before income tax provision	$	202,858	$	187,800	$	541,120	$	362,511