Segment Reporting | 10. 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 operating segments and no longer include a separate E&P segment. 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 2020 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 2021. Under the current orientation, 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 Eastern segment services customers located in Delaware, 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 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 10. Summarized financial information concerning the Company’s reportable segments for the three months ended March 31, 2021 and 2020, is shown in the following tables: Three Months Ended Intercompany Reported Segment March 31, 2021 Revenue Revenue (b) Revenue EBITDA (c) Southern $ 382,687 $ (44,526) $ 338,161 $ 93,424 Eastern 398,830 (62,369) 336,461 89,121 Western 332,820 (35,816) 297,004 93,825 Central 267,702 (32,316) 235,386 79,040 Canada 211,786 (22,856) 188,930 73,940 Corporate (a) — — — (750) $ 1,593,825 $ (197,883) $ 1,395,942 $ 428,600 Three Months Ended Intercompany Reported Segment March 31, 2020 Revenue Revenue (b) Revenue EBITDA (c) Southern $ 416,382 $ (47,126) $ 369,256 $ 106,319 Eastern 397,000 (64,798) 332,202 84,662 Western 305,436 (33,455) 271,981 81,029 Central 237,570 (29,028) 208,542 73,151 Canada 193,107 (22,684) 170,423 59,398 Corporate (a) — — — (3,631) $ 1,549,495 $ (197,091) $ 1,352,404 $ 400,928 ____________________ (a) The majority of Corporate expenses are allocated to the five 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 five 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 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 March 31, 2021 and December 31, 2020, were as follows: March 31, December 31, 2021 2020 Southern $ 3,373,593 $ 3,402,081 Eastern 3,094,800 3,134,462 Western 1,859,205 1,861,079 Central 2,144,461 2,160,246 Canada 2,552,952 2,544,379 Corporate 1,017,918 890,117 Total Assets $ 14,042,929 $ 13,992,364 The following tables show changes in goodwill during the three months ended March 31, 2021 and 2020, by reportable segment: Southern Eastern Western Central Canada Total Balance as of December 31, 2020 $ 1,532,215 $ 1,374,577 $ 442,862 $ 824,204 $ 1,552,792 $ 5,726,650 Goodwill acquired — — 2,289 — — 2,289 Goodwill acquisition adjustments (4) 1,408 — 4,385 (2) 5,787 Impact of changes in foreign currency — — — — 19,375 19,375 Balance as of March 31, 2021 $ 1,532,211 $ 1,375,985 $ 445,151 $ 828,589 $ 1,572,165 $ 5,754,101 Southern Eastern Western Central Canada Total Balance as of December 31, 2019 $ 1,528,225 $ 1,331,180 $ 400,037 $ 729,470 $ 1,521,939 $ 5,510,851 Goodwill acquired — — — 3,741 — 3,741 Goodwill acquisition adjustments 195 (524) 70 — — (259) Impact of changes in foreign currency — — — — (128,492) (128,492) Balance as of March 31, 2020 $ 1,528,420 $ 1,330,656 $ 400,107 $ 733,211 $ 1,393,447 $ 5,385,841 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 March 31, 2021 2020 Southern segment EBITDA $ 93,424 $ 106,319 Eastern segment EBITDA 89,121 84,662 Western segment EBITDA 93,825 81,029 Central segment EBITDA 79,040 73,151 Canada segment EBITDA 73,940 59,398 Subtotal reportable segments 429,350 404,559 Unallocated corporate overhead (750) (3,631) Depreciation (157,402) (150,821) Amortization of intangibles (32,192) (31,638) Impairments and other operating items (634) (1,506) Interest expense (42,425) (37,990) Interest income 1,103 2,175 Other income (expense), net 3,548 (9,521) Income before income tax provision $ 200,598 $ 171,627 |