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. Effective April 1, 2023, the Company modified its organizational structure under new regional operating segments as the result of continued growth in its business. The Company now reports revenue and segment EBITDA based on the following six geographic solid waste operating segments: Southern, Western, Central, Eastern, Canada and MidSouth. A small number of operating locations have been reallocated from the Western segment to the Central segment, the previous Eastern segment has been bifurcated into two smaller geographies now referred to as the Eastern segment and MidSouth segment, and a small number of operating locations have been reallocated from the Southern segment to the MidSouth segment. The Company’s six 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. While certain corporate or regional overhead expense allocations may affect comparability on a period-over-period basis, the segment information presented herein reflects the realignment of these regions. 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, 2023 and 2022, is shown in the following tables: Three Months Ended Intercompany Reported Segment September 30, 2023 Revenue Revenue (b) Revenue EBITDA (c) Southern $ 465,134 $ (51,556) $ 413,578 $ 133,072 Western 486,351 (53,889) 432,462 124,433 Central 419,169 (46,307) 372,862 137,823 Eastern 420,855 (67,746) 353,109 100,779 Canada 292,351 (29,256) 263,095 108,524 MidSouth 275,582 (45,944) 229,638 61,923 Corporate (a) — — — (2,729) $ 2,359,442 $ (294,698) $ 2,064,744 $ 663,825 Three Months Ended Intercompany Reported Segment September 30, 2022 Revenue Revenue (b) Revenue EBITDA (c) Southern $ 429,787 $ (46,350) $ 383,437 $ 122,472 Western 412,928 (42,739) 370,189 109,736 Central 380,756 (41,867) 338,889 122,471 Eastern 385,204 (55,946) 329,258 77,384 Canada 270,041 (27,727) 242,314 87,910 MidSouth 259,520 (43,739) 215,781 64,036 Corporate (a) — — — (11,657) $ 2,138,236 $ (258,368) $ 1,879,868 $ 572,352 Nine Months Ended Intercompany Reported Segment September 30, 2023 Revenue Revenue (b) Revenue EBITDA (c) Southern $ 1,382,681 $ (155,149) $ 1,227,532 $ 384,660 Western 1,402,628 (155,355) 1,247,273 354,682 Central 1,218,670 (136,638) 1,082,032 384,538 Eastern 1,215,266 (189,604) 1,025,662 260,569 Canada 824,303 (85,347) 738,956 286,703 MidSouth 799,823 (134,936) 664,887 182,072 Corporate (a) — — — (22,142) $ 6,843,371 $ (857,029) $ 5,986,342 $ 1,831,082 Nine Months Ended Intercompany Reported Segment September 30, 2022 Revenue Revenue (b) Revenue EBITDA (c) Southern $ 1,232,302 $ (129,003) $ 1,103,299 $ 341,006 Western 1,179,592 (129,159) 1,050,433 315,114 Central 1,067,991 (113,854) 954,137 333,866 Eastern 1,064,236 (154,322) 909,914 214,335 Canada 789,531 (82,127) 707,404 265,402 MidSouth 740,666 (123,295) 617,371 175,133 Corporate (a) — — — (19,042) $ 6,074,318 $ (731,760) $ 5,342,558 $ 1,625,814 ____________________ (a) The majority of Corporate expenses are allocated to the six 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 six 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 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, 2023 and December 31, 2022, were as follows: September 30, December 31, 2023 2022 Southern $ 3,478,012 $ 3,410,888 Western 3,409,663 3,239,679 Central 2,801,263 2,803,853 Eastern 3,156,943 2,752,436 Canada 2,734,397 2,773,882 MidSouth 1,705,300 1,727,323 Corporate 445,662 426,542 Total Assets $ 17,731,240 $ 17,134,603 The following tables show changes in goodwill during the nine months ended September 30, 2023 and 2022, by reportable segment: Southern Western Central Eastern Canada MidSouth Total Balance as of December 31, 2022 $ 1,547,894 $ 732,335 $ 1,003,470 $ 1,189,111 $ 1,684,670 $ 744,817 $ 6,902,297 Goodwill acquired — 45,072 3,605 361,398 — 1,366 411,441 Goodwill acquisition adjustments (1,450) — — — (2,215) — (3,665) Impact of changes in foreign currency — — — — 3,011 — 3,011 Balance as of September 30, 2023 $ 1,546,444 $ 777,407 $ 1,007,075 $ 1,550,509 $ 1,685,466 $ 746,183 $ 7,313,084 Southern Western Central Eastern Canada MidSouth Total Balance as of December 31, 2021 $ 1,457,437 $ 503,223 $ 931,269 $ 992,578 $ 1,559,512 $ 743,624 $ 6,187,643 Goodwill acquired 85,004 — 73,787 181,671 167,926 — 508,388 Goodwill acquisition adjustments — 8,060 — — — (7) 8,053 Impact of changes in foreign currency — — — — (129,224) — (129,224) Balance as of September 30, 2022 $ 1,542,441 $ 511,283 $ 1,005,056 $ 1,174,249 $ 1,598,214 $ 743,617 $ 6,574,860 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, 2023 2022 2023 2022 Southern segment EBITDA $ 133,072 $ 122,472 $ 384,660 $ 341,006 Western segment EBITDA 124,433 109,736 354,682 315,114 Central segment EBITDA 137,823 122,471 384,538 333,866 Eastern segment EBITDA 100,779 77,384 260,569 214,335 Canada segment EBITDA 108,524 87,910 286,703 265,402 MidSouth segment EBITDA 61,923 64,036 182,072 175,133 Subtotal reportable segments 666,554 584,009 1,853,224 1,644,856 Unallocated corporate overhead (2,729) (11,657) (22,142) (19,042) Depreciation (214,966) (193,287) (632,347) (562,174) Amortization of intangibles (39,405) (38,859) (117,740) (113,956) Impairments and other operating items (56,477) (13,438) (69,201) (19,467) Interest expense (69,016) (51,161) (204,914) (137,565) Interest income 2,833 1,784 6,886 2,574 Other income, net 5,372 8,487 8,346 2,373 Income before income tax provision $ 292,166 $ 285,878 $ 822,112 $ 797,599 |