Segment Reporting | 11. 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. In the first quarter of 2019, the Company moved two districts from the Eastern segment to the Central segment because their locations in Iowa were closer in proximity to operations in the Company’s Central segment. The segment information presented herein reflects the realignment of these districts. Under the current orientation, the Company’s Eastern segment services customers located in northern Illinois, Kentucky, Maryland, 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, 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 Central segment services customers located in Arizona, Colorado, Iowa, southern Illinois, 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 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 six months ended June 30, 2019 and 2018, is shown in the following tables: Three Months Ended Intercompany Reported Segment June 30, 2019 Revenue Revenue (b) Revenue EBITDA (c) Eastern $ 390,476 $ (66,855) $ 323,621 $ 85,048 Southern 339,461 (41,446) 298,015 74,511 Western 311,702 (34,704) 276,998 86,440 Central 250,467 (32,106) 218,361 74,506 Canada 216,306 (27,779) 188,527 67,664 E&P 67,016 (2,899) 64,117 33,433 Corporate (a) — — — (7,446) $ 1,575,428 $ (205,789) $ 1,369,639 $ 414,156 Three Months Ended Intercompany Reported Segment June 30, 2018 Revenue Revenue (b) Revenue EBITDA (c) Eastern $ 320,404 $ (53,945) $ 266,459 $ 73,755 Southern 321,051 (37,941) 283,110 68,787 Western 295,730 (32,031) 263,699 81,175 Central 207,209 (27,705) 179,504 64,172 Canada 211,787 (24,949) 186,838 67,305 E&P 61,765 (1,407) 60,358 31,231 Corporate (a) — — — 260 $ 1,417,946 $ (177,978) $ 1,239,968 $ 386,685 Six Months Ended June 30, Intercompany Reported Segment 2019 Revenue Revenue (b) Revenue EBITDA (c) Eastern $ 737,323 $ (120,875) $ 616,448 $ 162,005 Southern 663,942 (78,599) 585,343 148,889 Western 597,877 (65,900) 531,977 163,444 Central 453,260 (57,022) 396,238 137,534 Canada 406,591 (49,717) 356,874 126,908 E&P 133,050 (5,655) 127,395 65,042 Corporate (a) — — — (11,304) $ 2,992,043 $ (377,768) $ 2,614,275 $ 792,518 Six Months Ended June 30, Intercompany Reported Segment 2018 Revenue Revenue (b) Revenue EBITDA (c) Eastern $ 603,952 $ (99,905) $ 504,047 $ 140,040 Southern 630,007 (73,558) 556,449 137,694 Western 570,850 (61,988) 508,862 153,832 Central 386,700 (49,116) 337,584 123,742 Canada 403,475 (46,662) 356,813 126,571 E&P 119,385 (3,041) 116,344 59,910 Corporate (a) — — — (6,083) $ 2,714,369 $ (334,270) $ 2,380,099 $ 735,706 ____________________ (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 June 30, 2019 and December 31, 2018, were as follows: June 30, December 31, 2019 2018 Eastern $ 2,720,643 $ 2,673,316 Southern 2,965,048 2,892,994 Western 1,680,268 1,596,129 Central 1,880,010 1,506,326 Canada 2,496,286 2,412,971 E&P 974,023 969,808 Corporate 429,494 575,785 Total Assets $ 13,145,772 $ 12,627,329 The following tables show changes in goodwill during the six months ended June 30, 2019 and 2018, by reportable segment: Eastern Southern Western Central Canada E&P Total Balance as of December 31, 2018 $ 1,143,355 $ 1,517,610 $ 398,174 $ 523,566 $ 1,448,980 $ — $ 5,031,685 Goodwill transferred (16,869) — — 16,869 — — — Goodwill acquired 25,294 7,726 1,122 190,383 — — 224,525 Goodwill acquisition adjustments — — — — (173) — (173) Goodwill divested — (845) — — — — (845) Impact of changes in foreign currency — — — — 61,478 — 61,478 Balance as of June 30, 2019 $ 1,151,780 $ 1,524,491 $ 399,296 $ 730,818 $ 1,510,285 $ — $ 5,316,670 Eastern Southern Western Central Canada E&P Total Balance as of December 31, 2017 $ 804,133 $ 1,436,320 $ 397,508 $ 468,275 $ 1,575,538 $ — $ 4,681,774 Goodwill transferred (16,869) — — 16,869 — — — Goodwill acquired 120,979 4,909 666 39,155 — — 165,709 Impact of changes in foreign currency — — — — (74,517) — (74,517) Balance as of June 30, 2018 $ 908,243 $ 1,441,229 $ 398,174 $ 524,299 $ 1,501,021 $ — $ 4,772,966 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, 2019 2018 2019 2018 Eastern segment EBITDA $ 85,048 $ 73,755 $ 162,005 $ 140,040 Southern segment EBITDA 74,511 68,787 148,889 137,694 Western segment EBITDA 86,440 81,175 163,444 153,832 Central segment EBITDA 74,506 64,172 137,534 123,742 Canada segment EBITDA 67,664 67,305 126,908 126,571 E&P segment EBITDA 33,433 31,231 65,042 59,910 Subtotal reportable segments 421,602 386,425 803,822 741,789 Unallocated corporate overhead (7,446) 260 (11,304) (6,083) Depreciation (156,776) (142,450) (303,623) (275,634) Amortization of intangibles (31,344) (26,474) (61,886) (52,573) Impairments and other operating items (3,902) (7,073) (20,014) (8,104) Interest expense (37,245) (32,426) (74,533) (64,796) Interest income 1,818 1,056 5,129 2,210 Other income, net 805 2,031 3,363 1,644 Foreign currency transaction gain (loss) 1,115 30 1,218 (190) Income before income tax provision $ 188,627 $ 181,379 $ 342,172 $ 338,263 |