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Segment Reporting
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting

12.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.

Prior to July 2020, the Company managed its operations through five geographic solid waste operating segments and its E&P segment, which were also its reportable segments. As of July 2020, the Company’s chief operating decision maker determined that the Company’s E&P and Southern operating segments met all the aggregation criteria and eliminated the E&P segment by combining all operations of the E&P segment into the Southern segment. After giving effect to this combination, the Company’s reportable segments consist of its five geographic solid waste operating segments. Each operating segment is responsible for managing several vertically integrated operations, which are comprised of districts. The segment information presented herein reflects the realignment of these districts.  Segment results for the 2019 periods

reflected in this report have been reclassified to reflect the realignment of the Company’s reportable segments for comparison with the same period in 2020.  

Under the current orientation, the Company’s Eastern segment services customers located in northern Illinois, Kentucky, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, eastern Tennessee, Vermont, Virginia and Wisconsin; the Company’s Southern segment services customers located in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, New Mexico, North Dakota, southern Oklahoma, western Tennessee, Texas, Wyoming and along the Gulf of Mexico; the Company’s Western segment services customers located in Alaska, California, Idaho, Montana, Nevada, Oregon, Washington and western Wyoming; the Company’s Central segment services customers located in Arizona, Colorado, southern Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, New Mexico, Oklahoma, South Dakota, western Texas, Utah and eastern Wyoming; and 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.

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, and other income (expense). 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 12.

Summarized financial information concerning the Company’s reportable segments for the three and nine months ended September 30, 2020 and 2019, is shown in the following tables:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

    

​

​

    

Intercompany

    

Reported

    

Segment

September 30, 2020

​

Revenue

​

Revenue(b)

​

Revenue

​

EBITDA(c)

Eastern

​

$

413,499

​

$

(69,146)

​

$

344,353

​

$

90,991

Southern

​

​

375,636

​

​

(45,061)

​

​

330,575

​

​

81,394

Western

​

 

337,768

​

 

(36,547)

​

 

301,221

​

 

101,071

Central

​

 

262,458

​

 

(33,892)

​

 

228,566

​

 

82,887

Canada

​

 

210,577

​

 

(25,740)

​

 

184,837

​

 

72,516

Corporate(a)

​

 

—

​

 

—

​

 

—

​

 

(4,132)

​

​

$

1,599,938

​

$

(210,386)

​

$

1,389,552

​

$

424,727

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

    

​

​

    

Intercompany

    

Reported

    

Segment

September 30, 2019

​

Revenue

​

Revenue(b)

​

Revenue

​

EBITDA(c)

Eastern

​

$

399,936

​

$

(69,049)

​

$

330,887

​

$

88,101

Southern

​

​

417,133

​

​

(45,678)

​

​

371,455

​

​

113,209

Western

​

 

324,859

​

 

(35,651)

​

 

289,208

​

 

90,059

Central

​

 

262,737

​

 

(32,663)

​

 

230,074

​

 

81,746

Canada

​

 

217,879

​

 

(27,059)

​

 

190,820

​

 

66,794

Corporate(a)

​

 

—

​

 

—

​

 

—

​

 

(446)

​

​

$

1,622,544

​

$

(210,100)

​

$

1,412,444

​

$

439,463

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended

​

​

​

​

Intercompany

​

Reported

​

Segment

September 30, 2020

​

Revenue

​

Revenue(b)

​

Revenue

​

EBITDA(c)

Eastern

​

$

1,194,213

​

$

(198,767)

​

$

995,446

​

$

258,333

Southern

​

​

1,171,709

​

​

(138,412)

​

​

1,033,297

​

​

276,844

Western

​

 

953,861

​

 

(105,122)

​

 

848,739

​

 

267,523

Central

​

 

749,093

​

 

(95,365)

​

 

653,728

​

 

235,742

Canada

​

 

586,514

​

 

(69,985)

​

 

516,529

​

 

185,589

Corporate(a)

​

 

—

​

 

—

​

 

—

​

 

(10,462)

​

​

$

4,655,390

​

$

(607,651)

​

$

4,047,739

​

$

1,213,569

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended

​

​

​

​

Intercompany

​

Reported

​

Segment

September 30, 2019

​

Revenue

​

Revenue(b)

​

Revenue

​

EBITDA(c)

Eastern

​

$

1,137,258

​

$

(189,924)

​

$

947,334

​

$

250,106

Southern

​

​

1,214,125

​

​

(129,931)

​

​

1,084,194

​

​

327,139

Western

​

 

922,737

​

 

(101,552)

​

 

821,185

​

 

253,504

Central

​

 

715,997

​

 

(89,685)

​

 

626,312

​

 

219,280

Canada

​

 

624,470

​

 

(76,776)

​

 

547,694

​

 

193,702

Corporate(a)

​

 

—

​

 

—

​

 

—

​

 

(11,751)

​

​

$

4,614,587

​

$

(587,868)

​

$

4,026,719

​

$

1,231,980

____________________

(a)Corporate consists of expenses associated with its administrative departments and certain centralized expenses including cash and equity-based incentive compensation, direct acquisition expenses and share-based compensation expenses associated with Progressive Waste share-based grants outstanding at June 1, 2016 that were continued by the Company. Amounts reflected are net of allocations to the five 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, 2020 and December 31, 2019, were as follows:

​

​

​

​

​

​

​

​

​

​

September 30, 

​

December 31, 

​

    

2020

    

2019

Eastern

​

$

3,055,672

​

$

3,099,283

Southern

 

​

3,441,079

 

​

3,952,449

Western

​

​

1,860,596

​

​

1,718,015

Central

​

​

1,956,234

​

​

1,885,468

Canada

​

​

2,444,922

​

​

2,490,291

Corporate

​

​

1,090,944

​

​

592,189

Total Assets

 

$

13,849,447

 

$

13,737,695

​

The following tables show changes in goodwill during the nine months ended September 30, 2020 and 2019, by reportable segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Eastern

    

Southern

    

Western

    

Central

    

Canada

    

Total

Balance as of December 31, 2019

​

$

1,331,180

​

$

1,528,225

​

$

400,037

​

$

729,470

​

$

1,521,939

​

$

5,510,851

Goodwill acquired

​

 

6,228

​

 

3,648

​

​

43,151

​

 

10,450

​

​

174

​

 

63,651

Impact of changes in foreign currency

​

 

—

​

 

—

​

 

—

​

 

—

​

 

(39,935)

​

 

(39,935)

Balance as of September 30, 2020

​

$

1,337,408

​

$

1,531,873

​

$

443,188

​

$

739,920

​

$

1,482,178

​

$

5,534,567

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

    Eastern    

    

Southern

    

Western

    

Central

    

Canada

    

Total

Balance as of December 31, 2018

​

$

1,126,486

​

$

1,517,610

​

$

398,174

​

$

540,435

​

$

1,448,980

​

$

5,031,685

Goodwill acquired

​

 

22,146

​

​

10,329

​

​

1,334

​

​

189,194

​

​

25

​

 

223,028

Goodwill divested

​

 

—

​

​

(845)

​

​

—

​

​

—

​

​

—

​

 

(845)

Impact of changes in foreign currency

​

 

—

​

 

—

​

 

—

​

 

—

​

​

43,688

​

 

43,688

Balance as of September 30, 2019

​

$

1,148,632

​

$

1,527,094

​

$

399,508

​

$

729,629

​

$

1,492,693

​

$

5,297,556

​

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

​

Nine Months Ended

​

​

September 30, 

​

September 30, 

​

    

2020

    

2019

    

2020

    

2019

Eastern segment EBITDA

​

$

90,991

​

$

88,101

​

$

258,333

​

$

250,106

Southern segment EBITDA

​

​

81,394

​

​

113,209

​

​

276,844

​

​

327,139

Western segment EBITDA

​

 

101,071

​

 

90,059

​

 

267,523

​

 

253,504

Central segment EBITDA

​

 

82,887

​

 

81,746

​

 

235,742

​

 

219,280

Canada segment EBITDA

​

 

72,516

​

 

66,794

​

 

185,589

​

 

193,702

Subtotal reportable segments

​

 

428,859

​

 

439,909

​

 

1,224,031

​

 

1,243,731

Unallocated corporate overhead

​

 

(4,132)

​

 

(446)

​

 

(10,462)

​

 

(11,751)

Depreciation

​

 

(157,590)

​

 

(157,994)

​

 

(459,641)

​

 

(461,616)

Amortization of intangibles

​

 

(32,653)

​

 

(31,934)

​

 

(96,062)

​

 

(93,821)

Impairments and other operating items

​

 

(3,805)

​

 

(12,935)

​

 

(442,582)

​

 

(32,949)

Interest expense

​

 

(40,636)

​

 

(36,780)

​

 

(119,562)

​

 

(111,313)

Interest income

​

 

903

​

 

2,056

​

 

4,396

​

 

7,186

Other income (expense), net

​

 

702

​

 

(19)

​

 

(3,046)

​

 

4,562

Income before income tax provision

​

$

191,648

​

$

201,857

​

$

97,072

​

$

544,029

​