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. For the three months ended March 31, 2023, the Company managed its operations through the following five geographic solid waste operating segments: Eastern, Southern, Western, Central and Canada. The Company’s five 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 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, 2023 and 2022, is shown in the following tables: Three Months Ended Intercompany Reported Segment March 31, 2023 Revenue Revenue (b) Revenue EBITDA (c) Eastern $ 588,233 $ (96,815) $ 491,418 $ 119,980 Southern 503,584 (56,544) 447,040 133,271 Western 459,003 (49,000) 410,003 116,301 Central 368,383 (43,497) 324,886 109,813 Canada 253,670 (26,514) 227,156 82,984 Corporate (a) — — — (2,454) $ 2,172,873 $ (272,370) $ 1,900,503 $ 559,895 Three Months Ended Intercompany Reported Segment March 31, 2022 Revenue Revenue (b) Revenue EBITDA (c) Eastern $ 499,255 $ (77,658) $ 421,597 $ 107,788 Southern 431,348 (44,284) 387,064 108,610 Western 389,628 (42,918) 346,710 104,747 Central 309,070 (32,893) 276,177 92,036 Canada 240,215 (25,508) 214,707 84,844 Corporate (a) — — — (4,702) $ 1,869,516 $ (223,261) $ 1,646,255 $ 493,323 ____________________ (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. The following tables show changes in goodwill during the three months ended March 31, 2023 and 2022, by reportable segment: Eastern Southern Western Central Canada Total Balance as of December 31, 2022 $ 1,805,283 $ 1,679,091 $ 768,843 $ 964,410 $ 1,684,670 $ 6,902,297 Goodwill acquired 6,722 — 30,703 398 — 37,823 Goodwill acquisition adjustments — (681) — — (289) (970) Impact of changes in foreign currency — — — — 1,417 1,417 Balance as of March 31, 2023 $ 1,812,005 $ 1,678,410 $ 799,546 $ 964,808 $ 1,685,798 $ 6,940,567 Eastern Southern Western Central Canada Total Balance as of December 31, 2021 $ 1,607,723 $ 1,588,467 $ 539,732 $ 892,209 $ 1,559,512 $ 6,187,643 Goodwill acquired 85,868 — — 2,795 123,384 212,047 Goodwill acquisition adjustments — (97) 2,651 — — 2,554 Impact of changes in foreign currency — — — — 25,519 25,519 Balance as of March 31, 2022 $ 1,693,591 $ 1,588,370 $ 542,383 $ 895,004 $ 1,708,415 $ 6,427,763 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, 2023 2022 Eastern segment EBITDA $ 119,980 $ 107,788 Southern segment EBITDA 133,271 108,610 Western segment EBITDA 116,301 104,747 Central segment EBITDA 109,813 92,036 Canada segment EBITDA 82,984 84,844 Subtotal reportable segments 562,349 498,025 Unallocated corporate overhead (2,454) (4,702) Depreciation (204,059) (179,950) Amortization of intangibles (39,282) (37,635) Impairments and other operating items (1,865) (1,878) Interest expense (68,353) (41,324) Interest income 2,715 137 Other income (expense), net 3,174 (3,466) Income before income tax provision $ 252,225 $ 229,207 |