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 solid waste 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 solid waste 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 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, 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, 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 E&P segment services E&P customers located in 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, 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 (loss) 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, 2020 and 2019, is shown in the following tables: Three Months Ended Intercompany Reported Segment June 30, 2020 Revenue Revenue (b) Revenue EBITDA (c) Eastern $ 383,715 $ (64,824) $ 318,891 $ 82,680 Southern 338,860 (41,761) 297,099 76,119 Western 310,656 (35,120) 275,536 85,423 Central 249,064 (32,444) 216,620 79,705 Canada 182,831 (21,562) 161,269 53,675 E&P 40,830 (4,463) 36,367 13,011 Corporate (a) — — — (2,699) $ 1,505,956 $ (200,174) $ 1,305,782 $ 387,914 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 Six Months Ended Intercompany Reported Segment June 30, 2020 Revenue Revenue (b) Revenue EBITDA (c) Eastern $ 780,715 $ (129,622) $ 651,093 $ 167,342 Southern 690,362 (83,876) 606,486 150,637 Western 616,093 (68,575) 547,518 166,451 Central 486,634 (61,472) 425,162 152,856 Canada 375,937 (44,245) 331,692 113,073 E&P 105,711 (9,475) 96,236 44,813 Corporate (a) — — — (6,329) $ 3,055,452 $ (397,265) $ 2,658,187 $ 788,843 Six Months Ended Intercompany Reported Segment June 30, 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 ____________________ (a) Corporate functions include accounting, legal, tax, treasury, information technology, risk management, human resources, training, direct acquisition expenses, other administrative functions 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 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, 2020 and December 31, 2019, were as follows: June 30, December 31, 2020 2019 Eastern $ 3,039,341 $ 3,099,283 Southern 2,956,735 2,990,247 Western 1,853,224 1,718,015 Central 1,871,538 1,885,468 Canada 2,359,026 2,490,291 E&P 513,120 962,202 Corporate 1,001,021 592,189 Total Assets $ 13,594,005 $ 13,737,695 The following tables show changes in goodwill during the six months ended June 30, 2020 and 2019, by reportable segment: Eastern Southern Western Central Canada E&P 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 — 3,648 42,206 3,134 177 — 49,165 Goodwill acquisition adjustments (340) — — — — — (340) Impact of changes in foreign currency — — — — (71,371) — (71,371) Balance as of June 30, 2020 $ 1,330,840 $ 1,531,873 $ 442,243 $ 732,604 $ 1,450,745 $ — $ 5,488,305 Eastern Southern Western Central Canada E&P 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 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 A reconciliation of the Company’s primary measure of segment profitability (segment EBITDA) to Income (loss) before income tax provision in the Condensed Consolidated Statements of Net Income (Loss) is as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Eastern segment EBITDA $ 82,680 $ 85,048 $ 167,342 $ 162,005 Southern segment EBITDA 76,119 74,511 150,637 148,889 Western segment EBITDA 85,423 86,440 166,451 163,444 Central segment EBITDA 79,705 74,506 152,856 137,534 Canada segment EBITDA 53,675 67,664 113,073 126,908 E&P segment EBITDA 13,011 33,433 44,813 65,042 Subtotal reportable segments 390,613 421,602 795,172 803,822 Unallocated corporate overhead (2,699) (7,446) (6,329) (11,304) Depreciation (151,230) (156,776) (302,051) (303,623) Amortization of intangibles (31,771) (31,344) (63,409) (61,886) Impairments and other operating items (437,270) (3,902) (438,777) (20,014) Interest expense (40,936) (37,245) (78,926) (74,533) Interest income 1,317 1,818 3,493 5,129 Other income (expense), net 5,772 1,920 (3,749) 4,581 Income (loss) before income tax provision $ (266,204) $ 188,627 $ (94,576) $ 342,172 |