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, which are also its reportable segments. Each operating segment is responsible for managing several vertically integrated operations, which are comprised of districts. 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 Hampshire, 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 11. Summarized financial information concerning the Company’s reportable segments for the three and nine months ended September 30, 2021 and 2020, is shown in the following tables: Three Months Ended Intercompany Reported Segment September 30, 2021 Revenue Revenue (b) Revenue EBITDA (c) Eastern $ 470,637 $ (74,408) $ 396,229 $ 106,908 Southern 418,917 (47,959) 370,958 99,612 Western 371,846 (39,826) 332,020 108,280 Central 310,551 (36,869) 273,682 95,026 Canada 251,897 (27,618) 224,279 92,275 Corporate (a) — — — (6,551) $ 1,823,848 $ (226,680) $ 1,597,168 $ 495,550 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 Nine Months Ended Intercompany Reported Segment September 30, 2021 Revenue Revenue (b) Revenue EBITDA (c) Eastern $ 1,310,265 $ (207,958) $ 1,102,307 $ 295,411 Southern 1,214,798 (142,342) 1,072,456 291,964 Western 1,056,482 (113,669) 942,813 301,507 Central 882,159 (106,246) 775,913 268,952 Canada 711,281 (77,728) 633,553 254,857 Corporate (a) — — — (13,743) $ 5,174,985 $ (647,943) $ 4,527,042 $ 1,398,948 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 ____________________ (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 September 30, 2021 and December 31, 2020, were as follows: September 30, December 31, 2021 2020 Eastern $ 3,483,854 $ 3,134,462 Southern 3,370,932 3,402,081 Western 2,093,299 1,861,079 Central 2,217,407 2,160,246 Canada 2,563,773 2,544,379 Corporate 545,567 890,117 Total Assets $ 14,274,832 $ 13,992,364 The following tables show changes in goodwill during the nine months ended September 30, 2021 and 2020, by reportable segment: Eastern Southern Western Central Canada Total Balance as of December 31, 2020 $ 1,374,577 $ 1,532,215 $ 442,862 $ 824,204 $ 1,552,792 $ 5,726,650 Goodwill acquired 169,561 2,970 60,999 47,344 — 280,874 Goodwill acquisition adjustments — — — — (2) (2) Impact of changes in foreign currency — — — — (989) (989) Balance as of September 30, 2021 $ 1,544,138 $ 1,535,185 $ 503,861 $ 871,548 $ 1,551,801 $ 6,006,533 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 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, 2021 2020 2021 2020 Eastern segment EBITDA $ 106,908 $ 90,991 $ 295,411 $ 258,333 Southern segment EBITDA 99,612 81,394 291,964 276,844 Western segment EBITDA 108,280 101,071 301,507 267,523 Central segment EBITDA 95,026 82,887 268,952 235,742 Canada segment EBITDA 92,275 72,516 254,857 185,589 Subtotal reportable segments 502,101 428,859 1,412,691 1,224,031 Unallocated corporate overhead (6,551) (4,132) (13,743) (10,462) Depreciation (171,965) (157,590) (498,588) (459,641) Amortization of intangibles (35,337) (32,653) (100,237) (96,062) Impairments and other operating items (3,104) (3,805) (9,819) (442,582) Interest expense (40,418) (40,636) (124,171) (119,562) Interest income 495 903 2,342 4,396 Other income (expense), net 3,140 702 5,452 (3,046) Loss on early extinguishment of debt (115,288) — (115,288) — Income before income tax provision $ 133,073 $ 191,648 $ 558,639 $ 97,072 |