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Segment Reporting
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting

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.

Effective April 1, 2023, the Company modified its organizational structure under new regional operating segments as the result of continued growth in its business.  The Company now reports revenue and segment EBITDA based on the following six geographic solid waste operating segments: Southern, Western, Central, Eastern, Canada and MidSouth.  A small number of operating locations have been reallocated from the Western segment to the Central segment, the previous Eastern segment has been bifurcated into two smaller geographies now referred to as the Eastern segment and MidSouth segment, and a small number of operating locations have been reallocated from the Southern segment to the MidSouth segment. The Company’s six geographic solid waste operating segments comprise its reportable 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 regions.

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 11.

Summarized financial information concerning the Company’s reportable segments for the three and six months ended June 30, 2023 and 2022, is shown in the following tables:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

    

​

​

    

Intercompany

    

Reported

    

Segment

June 30, 2023

​

Revenue

​

Revenue(b)

​

Revenue

​

EBITDA(c)

Southern

​

$

466,547

​

$

(52,486)

​

$

414,061

​

$

129,674

Western

​

 

471,481

​

 

(52,509)

​

 

418,972

​

 

119,560

Central

​

 

415,975

​

 

(46,790)

​

 

369,185

​

 

130,958

Eastern

​

​

405,614

​

​

(62,190)

​

​

343,424

​

​

86,515

Canada

​

 

278,282

​

 

(29,577)

​

 

248,705

​

 

95,194

MidSouth

​

 

273,156

​

 

(46,408)

​

 

226,748

​

 

62,418

Corporate(a)

​

 

—

​

 

—

​

 

—

​

 

(16,958)

​

​

$

2,311,055

​

$

(289,960)

​

$

2,021,095

​

$

607,361

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

    

​

​

    

Intercompany

    

Reported

    

Segment

June 30, 2022

​

Revenue

​

Revenue(b)

​

Revenue

​

EBITDA(c)

Southern

​

$

416,878

​

$

(43,082)

​

$

373,796

​

$

117,410

Western

​

 

390,126

​

 

(43,541)

​

 

346,585

​

 

105,378

Central

​

 

364,239

​

 

(39,052)

​

 

325,187

​

 

114,444

Eastern

​

​

363,064

​

​

(53,210)

​

​

309,854

​

​

71,664

Canada

​

 

279,274

​

 

(28,892)

​

 

250,382

​

 

92,648

MidSouth

​

 

252,984

​

​

(42,353)

​

​

210,631

​

​

61,278

Corporate(a)

​

 

—

​

 

—

​

 

—

​

 

(2,683)

​

​

$

2,066,565

​

$

(250,130)

​

$

1,816,435

​

$

560,139

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended

​

​

​

​

Intercompany

​

Reported

​

Segment

June 30, 2023

    

Revenue

    

Revenue(b)

    

Revenue

    

EBITDA(c)

Southern

​

$

917,547

​

$

(103,593)

​

$

813,954

​

$

251,588

Western

​

 

916,277

​

 

(101,466)

​

 

814,811

​

 

230,249

Central

​

 

799,500

​

 

(90,330)

​

 

709,170

​

 

246,714

Eastern

​

​

794,411

​

​

(121,858)

​

​

672,553

​

​

159,790

Canada

​

 

531,952

​

 

(56,091)

​

 

475,861

​

 

178,178

MidSouth

​

 

524,241

​

 

(88,992)

​

 

435,249

​

 

120,149

Corporate(a)

​

 

—

​

 

—

​

 

—

​

 

(19,412)

​

​

$

4,483,928

​

$

(562,330)

​

$

3,921,598

​

$

1,167,256

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended

​

​

​

​

Intercompany

​

Reported

​

Segment

June 30, 2022

    

Revenue

    

Revenue(b)

    

Revenue

    

EBITDA(c)

Southern

​

$

802,515

​

$

(82,653)

​

$

719,862

​

$

218,534

Western

​

 

766,664

​

 

(86,420)

​

 

680,244

​

 

205,378

Central

​

 

687,236

​

 

(71,988)

​

 

615,248

​

 

211,395

Eastern

​

​

679,031

​

​

(98,375)

​

​

580,656

​

​

136,951

Canada

​

 

519,489

​

 

(54,399)

​

 

465,090

​

 

177,492

MidSouth

​

 

481,146

​

 

(79,556)

​

​

401,590

​

​

111,097

Corporate(a)

​

 

—

​

 

—

​

 

—

​

 

(7,385)

​

​

$

3,936,081

​

$

(473,391)

​

$

3,462,690

​

$

1,053,462

____________________

(a)The majority of Corporate expenses are allocated to the six operating segments.  Direct acquisition expenses, expenses associated with common shares held in the deferred compensation plan exchanged for other investment options and share-based compensation expenses associated with Progressive Waste share-based grants outstanding at June 1, 2016 that were continued by the Company are not allocated to the six operating segments and comprise the net EBITDA of the Company’s Corporate segment for the periods presented.
(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 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.

The following tables show changes in goodwill during the six months ended June 30, 2023 and 2022, by reportable segment:

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Southern

    

Western

    

Central

    

Eastern

    

Canada

    

MidSouth

    

Total

Balance as of December 31, 2022

​

$

1,547,894

​

$

732,335

​

$

1,003,470

​

$

1,189,111

​

$

1,684,670

​

$

744,817

​

$

6,902,297

Goodwill acquired

​

 

—

​

​

45,072

​

​

4,026

​

​

3,895

​

​

—

​

​

1,366

​

 

54,359

Goodwill acquisition adjustments

​

​

(1,493)

​

​

—

​

​

—

​

​

—

​

​

(1,528)

​

​

—

​

​

(3,021)

Impact of changes in foreign currency

​

 

—

​

 

—

​

 

—

​

 

—

​

 

38,831

​

 

—

​

 

38,831

Balance as of June 30, 2023

​

$

1,546,401

​

$

777,407

​

$

1,007,496

​

$

1,193,006

​

$

1,721,973

​

$

746,183

​

$

6,992,466

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Southern

    

Western

    

Central

    

Eastern

    

Canada

    

MidSouth

    

Total

Balance as of December 31, 2021

​

$

1,457,437

​

$

503,223

​

$

931,269

​

$

992,578

​

$

1,559,512

​

$

743,624

​

$

6,187,643

Goodwill acquired

​

 

—

​

​

—

​

​

5,976

​

​

121,041

​

​

166,491

​

 

—

​

 

293,508

Goodwill acquisition adjustments

​

​

—

​

​

2,999

​

​

—

​

​

—

​

​

—

​

​

1,108

​

​

4,107

Impact of changes in foreign currency

​

 

—

​

 

—

​

 

—

​

 

—

​

​

(27,348)

​

 

—

​

 

(27,348)

Balance as of June 30, 2022

​

$

1,457,437

​

$

506,222

​

$

937,245

​

$

1,113,619

​

$

1,698,655

​

$

744,732

​

$

6,457,910

​

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

​

Six Months Ended

​

​

​

June 30, 

​

June 30, 

​

​

    

2023

    

2022

    

2023

    

2022

    

Southern segment EBITDA

​

$

129,674

​

$

117,410

​

$

251,588

​

$

218,534

​

Western segment EBITDA

​

 

119,560

​

​

105,378

​

​

230,249

​

​

205,378

​

Central segment EBITDA

​

 

130,958

​

​

114,444

​

​

246,714

​

​

211,395

​

Eastern segment EBITDA

​

​

86,515

​

​

71,664

​

​

159,790

​

​

136,951

​

Canada segment EBITDA

​

 

95,194

​

​

92,648

​

​

178,178

​

​

177,492

​

MidSouth segment EBITDA

​

 

62,418

​

 

61,278

​

 

120,149

​

 

111,097

​

Subtotal reportable segments

​

 

624,319

​

 

562,822

​

 

1,186,668

​

 

1,060,847

​

Unallocated corporate overhead

​

 

(16,958)

​

​

(2,683)

​

​

(19,412)

​

​

(7,385)

​

Depreciation

​

 

(213,322)

​

​

(188,937)

​

​

(417,380)

​

​

(368,887)

​

Amortization of intangibles

​

 

(39,052)

​

​

(37,462)

​

​

(78,335)

​

​

(75,098)

​

Impairments and other operating items

​

 

(10,859)

​

​

(4,150)

​

​

(12,724)

​

​

(6,028)

​

Interest expense

​

 

(67,545)

​

​

(45,079)

​

​

(135,898)

​

​

(86,404)

​

Interest income

​

 

1,338

​

​

652

​

​

4,053

​

​

790

​

Other income (expense), net

​

 

(200)

​

​

(2,649)

​

​

2,974

​

​

(6,114)

​

Income before income tax provision

​

$

277,721

​

$

282,514

​

$

529,946

​

$

511,721

​

​

​