Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'STERICYCLE INC | ' |
Entity Central Index Key | '0000861878 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'SRCL | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 85,710,402 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $63,580 | $31,324 |
Short-term investments | 447 | 503 |
Accounts receivable, less allowance for doubtful accounts of $18,268 in 2013 and $19,443 in 2012 | 370,077 | 322,246 |
Deferred income taxes | 22,181 | 22,995 |
Prepaid expenses | 30,909 | 27,042 |
Other current assets | 40,778 | 37,176 |
Total Current Assets | 527,972 | 441,286 |
Property, plant and equipment, net | 352,368 | 335,870 |
Goodwill | 2,207,845 | 2,065,103 |
Intangible assets, less accumulated amortization of $82,180 in 2013 and $64,215 in 2012 | 720,811 | 667,471 |
Other assets | 36,133 | 37,008 |
Total Assets | 3,845,129 | 3,546,738 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 107,577 | 87,781 |
Accounts payable | 82,552 | 74,225 |
Accrued liabilities | 135,472 | 124,261 |
Deferred revenues | 19,491 | 18,095 |
Other current liabilities | 66,512 | 26,698 |
Total Current Liabilities | 411,604 | 331,060 |
Long-term debt, net of current portion | 1,295,592 | 1,268,303 |
Deferred income taxes | 384,110 | 359,780 |
Other liabilities | 31,090 | 30,272 |
Equity: | ' | ' |
Common stock (par value $.01 per share, 120,000,000 shares authorized, 85,692,918 issued and outstanding in 2013 and 85,987,883 issued and outstanding in 2012) | 857 | 860 |
Additional paid-in capital | 177,706 | 116,720 |
Accumulated other comprehensive loss | -54,998 | -39,064 |
Retained earnings | 1,581,964 | 1,463,277 |
Total Stericycle, Inc.’s Equity | 1,705,529 | 1,541,793 |
Noncontrolling interest | 17,204 | 15,530 |
Total Equity | 1,722,733 | 1,557,323 |
Total Liabilities and Equity | $3,845,129 | $3,546,738 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $18,268 | $19,443 |
Intangible assets, accumulated amortization | $82,180 | $64,215 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, issued | 85,692,918 | 85,987,883 |
Common stock, outstanding | 85,692,918 | 85,987,883 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues | $534,579 | $480,484 | $1,574,908 | $1,409,511 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of revenues (exclusive of depreciation shown below) | 280,645 | 253,526 | 826,703 | 746,540 |
Depreciation - cost of revenues | 12,531 | 11,404 | 36,856 | 32,622 |
Selling, general and administrative expenses (exclusive of depreciation and amortization shown below) | 96,689 | 92,966 | 282,580 | 259,246 |
Depreciation – selling, general and administrative expenses | 2,610 | 2,480 | 8,373 | 6,892 |
Amortization | 6,709 | 5,561 | 19,884 | 15,675 |
Total Costs and Expenses | 399,184 | 365,937 | 1,174,396 | 1,060,975 |
Income from Operations | 135,395 | 114,547 | 400,512 | 348,536 |
Other Income (Expense): | ' | ' | ' | ' |
Interest income | 151 | 117 | 420 | 333 |
Interest expense | -13,467 | -13,048 | -40,028 | -38,597 |
Other expense, net | -1,341 | -488 | -2,899 | -556 |
Total Other Expense | -14,657 | -13,419 | -42,507 | -38,820 |
Income Before Income Taxes | 120,738 | 101,128 | 358,005 | 309,716 |
Income Tax Expense | 39,906 | 35,382 | 123,508 | 110,283 |
Net Income | 80,832 | 65,746 | 234,497 | 199,433 |
Less: Net Income Attributable to Noncontrolling Interests | 285 | 269 | 1,289 | 1,506 |
Net Income Attributable to Stericycle, Inc. | $80,547 | $65,477 | $233,208 | $197,927 |
Earnings Per Common Share Attributable to Stericycle, Inc. Common Shareholders: | ' | ' | ' | ' |
Basic | $0.94 | $0.76 | $2.71 | $2.32 |
Diluted | $0.92 | $0.75 | $2.67 | $2.28 |
Weighted Average Number of Common Shares Outstanding: | ' | ' | ' | ' |
Basic | 85,849,656 | 85,748,998 | 86,021,764 | 85,251,002 |
Diluted | 87,401,565 | 87,305,779 | 87,497,276 | 86,911,229 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $80,832 | $65,746 | $234,497 | $199,433 |
Other Comprehensive Income/ (Loss): | ' | ' | ' | ' |
Foreign currency translation adjustments | 23,549 | 16,332 | -17,070 | 4,437 |
Amortization of cash flow hedge into income, net of tax ($50 and $54, and $150 and $163) for the three- and nine-months ended September 30, 2013 and 2012, respectively) | 79 | 374 | 236 | 545 |
Total Other Comprehensive Income/ (Loss) | 23,628 | 16,706 | -16,834 | 4,982 |
Comprehensive Income | 104,460 | 82,452 | 217,663 | 204,415 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 347 | 841 | 389 | 2,106 |
Comprehensive Income Attributable to Stericycle, Inc. | $104,113 | $81,611 | $217,274 | $202,309 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - Parenthetical (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Amortization of cash flow hedge into income, tax | $50 | $54 | $150 | $163 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
OPERATING ACTIVITIES: | ' | ' |
Net income | $234,497 | $199,433 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Loss on sale of business | 0 | 4,867 |
Change in fair value of contingent consideration | -307 | 591 |
Stock compensation expense | 12,088 | 12,346 |
Excess tax benefit of stock options exercised | -12,354 | -20,994 |
Depreciation | 45,229 | 39,514 |
Amortization | 19,884 | 15,675 |
Deferred income taxes | 15,623 | 25,462 |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | ' | ' |
Accounts receivable | -43,816 | -4,657 |
Accounts payable | 2,647 | 7,246 |
Accrued liabilities | 21,322 | -14,945 |
Deferred revenues | -614 | 615 |
Other assets and liabilities | 41,084 | 11,994 |
Net cash provided by operating activities | 335,283 | 277,147 |
INVESTING ACTIVITIES: | ' | ' |
Payments for acquisitions, net of cash acquired | -131,902 | -148,073 |
Proceeds from/ (purchase of) short-term investments | 45 | -49 |
Proceeds from sale of business and other assets | 0 | 764 |
Capital expenditures | -54,329 | -51,658 |
Net cash used in investing activities | -186,186 | -199,016 |
FINANCING ACTIVITIES: | ' | ' |
Repayment of long-term debt and other obligations | -48,858 | -70,630 |
Borrowings on foreign bank debt | 164,669 | 74,350 |
Repayments on foreign bank debt | -163,941 | -47,636 |
Borrowings on senior credit facility | 731,015 | 532,701 |
Repayments on senior credit facility | -725,940 | -629,302 |
Payments of deferred financing costs | 0 | -148 |
Payments on capital lease obligations | -2,623 | -2,559 |
Purchase and cancellation of treasury stock | -114,531 | -2,945 |
Payments to noncontrolling interests | -1,018 | -5,317 |
Payments of dividends to noncontrolling interests | 0 | -398 |
Proceeds from issuance of common stock | 33,827 | 44,879 |
Excess tax benefit of stock options exercised | 12,354 | 20,994 |
Net cash used in financing activities | -115,046 | -86,011 |
Effect of exchange rate changes on cash and cash equivalents | -1,795 | 1,574 |
Net increase/ (decrease) in cash and cash equivalents | 32,256 | -6,306 |
Cash and cash equivalents at beginning of period | 31,324 | 22,511 |
Cash and cash equivalents at end of period | 63,580 | 16,205 |
NON-CASH ACTIVITIES: | ' | ' |
Net issuance of obligations for acquisitions | 88,530 | 56,361 |
Net issuance of obligations for noncontrolling interest | $2,113 | $5,901 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2011 | $1,227,251 | $847 | $0 | $1,243,303 | ($45,984) | $29,085 |
Beginning Balance (in shares) at Dec. 31, 2011 | ' | 84,696,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 269,941 | ' | ' | 267,996 | ' | 1,945 |
Currency translation adjustment | 6,801 | ' | ' | ' | 6,292 | 509 |
Change in qualifying cash flow hedge, net of tax | 628 | ' | ' | ' | 628 | ' |
Issuance of common stock for exercise of options, restricted stock units and employee stock purchases (in shares) | ' | 1,855,000 | ' | ' | ' | ' |
Issuance of common stock for exercise of options, restricted stock units and employee stock purchases | 68,463 | 19 | 68,444 | ' | ' | ' |
Purchase/ cancellation of treasury stock (in shares) | ' | -563,000 | ' | ' | ' | ' |
Purchase/ cancellation of treasury stock | -48,028 | -6 | 0 | -48,022 | ' | ' |
Stock compensation expense | 16,339 | ' | 16,339 | ' | ' | ' |
Excess tax benefit of stock options exercised | 30,161 | ' | 30,161 | ' | ' | ' |
Noncontrolling interests attributable to acquisitions | 4,386 | ' | ' | ' | ' | 4,386 |
Reduction to noncontrolling interests due to additional ownership | -18,039 | ' | 1,958 | ' | ' | -19,997 |
Payments to noncontrolling interests | -580 | ' | -182 | ' | ' | -398 |
Ending Balance at Dec. 31, 2012 | 1,557,323 | 860 | 116,720 | 1,463,277 | -39,064 | 15,530 |
Ending Balance (in shares) at Dec. 31, 2012 | 85,987,883 | 85,988,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 234,497 | ' | ' | 233,208 | ' | 1,289 |
Currency translation adjustment | -17,070 | ' | ' | ' | -16,170 | -900 |
Change in qualifying cash flow hedge, net of tax | 236 | ' | ' | ' | 236 | ' |
Issuance of common stock for exercise of options, restricted stock units and employee stock purchases (in shares) | ' | 741,000 | ' | ' | ' | ' |
Issuance of common stock for exercise of options, restricted stock units and employee stock purchases | 36,756 | 7 | 36,749 | ' | ' | ' |
Purchase/ cancellation of treasury stock (in shares) | -1,036,270 | -1,036,000 | ' | ' | ' | ' |
Purchase/ cancellation of treasury stock | -114,531 | -10 | 0 | -114,521 | ' | ' |
Stock compensation expense | 12,088 | ' | 12,088 | ' | ' | ' |
Excess tax benefit of stock options exercised | 12,354 | ' | 12,354 | ' | ' | ' |
Noncontrolling interests attributable to acquisitions | 4,211 | ' | ' | ' | ' | 4,211 |
Reduction to noncontrolling interests due to additional ownership | -3,131 | ' | -205 | ' | ' | -2,926 |
Ending Balance at Sep. 30, 2013 | $1,722,733 | $857 | $177,706 | $1,581,964 | ($54,998) | $17,204 |
Ending Balance (in shares) at Sep. 30, 2013 | 85,692,918 | 85,693,000 | ' | ' | ' | ' |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended | |
Sep. 30, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
BASIS OF PRESENTATION | ' | |
BASIS OF PRESENTATION | ||
The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. However, the Company believes the disclosures included in the accompanying condensed consolidated financial statements are adequate to make the information presented not misleading. In our opinion, all adjustments necessary for a fair presentation for the periods presented have been reflected and are of a normal recurring nature. These condensed consolidated financial statements should be read in conjunction with the Stericycle, Inc. and Subsidiaries Consolidated Financial Statements and notes thereto for the year ended December 31, 2012, as filed with our Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the nine months ended September 30, 2013 are not necessarily indicative of the results that may be achieved for the entire year ending December 31, 2013. | ||
Certain amounts in previously issued financial statements have been reclassified to conform to the current period presentation. The following reclassifications were made to our 2012 balance sheet and statement of cash flows: | ||
• | related to product reimbursement liabilities | |
◦ | in our balance sheet as of December 31, 2012, $11.1 million was reclassified from accrued liabilities to other current liabilities; | |
◦ | in our statement of cash flows for the nine months ended September 30, 2012, $14.0 million was reclassified within operating activities from accrued liabilities to other assets and liabilities. | |
There were no material changes in the Company’s critical accounting policies since the filing of its 2012 Form 10-K. As discussed in the 2012 Form 10-K, the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the amount of reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates. | ||
We have evaluated subsequent events through the date of filing this quarterly report on Form 10-Q. No events have occurred that would require adjustment to or disclosure in the consolidated financial statements. |
ACQUISITIONS_AND_DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
ACQUISITIONS AND DIVESTITURES | ' | |||||||
ACQUISITIONS AND DIVESTITURES | ||||||||
The following table summarizes the locations of our acquisitions for the nine months ended September 30, 2013: | ||||||||
Acquisition Locations | 2013 | |||||||
United States | 12 | |||||||
Argentina | 3 | |||||||
Brazil | 2 | |||||||
Canada | 2 | |||||||
Chile | 1 | |||||||
Japan | 3 | |||||||
Mexico | 1 | |||||||
Portugal | 2 | |||||||
Romania | 4 | |||||||
Spain | 2 | |||||||
United Kingdom | 9 | |||||||
Total | 41 | |||||||
During the quarter ended March 31, 2013, we completed twelve regulated waste acquisitions. Domestically, we acquired selected assets of one business. Internationally, we acquired 100% of the stock of one business in each of Canada, Chile, Portugal, and Romania and of three businesses in the United Kingdom. In addition, we acquired selected assets of two businesses in Japan, one in Spain, and one in the United Kingdom. | ||||||||
During the quarter ended June 30, 2013, we completed twelve acquisitions. Domestically, we acquired the selected assets of four regulated waste businesses. Internationally, in Brazil we acquired 100% of the stock of one regulated waste business and 70% of another regulated waste business. In the United Kingdom, we acquired 100% of the stock of a recall and returns business and 100% of the stock of a regulated waste business. In addition, we acquired selected assets of one regulated waste business in each of Japan, Portugal, Romania, and the United Kingdom. | ||||||||
During the quarter ended September 30, 2013, we completed seventeen acquisitions. Domestically we acquired the selected assets of five regulated waste businesses, one patient communication services, and 100% of the stock of another patient communication businesses. Internationally, we acquired selected assets of two regulated waste businesses in Romania, and one in Argentina. In addition, we acquired 100% of the stock of two patient communication services companies in the United Kingdom, two regulated waste businesses in Argentina, one in Canada, one in Spain, and in Mexico we acquired 51% stock of a regulated waste business. | ||||||||
The following table summarizes the aggregate purchase price paid for acquisitions and other adjustments of consideration to be paid for acquisitions during the nine months ended September 30: | ||||||||
In thousands | ||||||||
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Cash | $ | 131,902 | $ | 148,073 | ||||
Promissory notes | 56,602 | 24,496 | ||||||
Deferred consideration | 28,550 | 18,259 | ||||||
Contingent consideration | 3,378 | 13,606 | ||||||
Total purchase price | $ | 220,432 | $ | 204,434 | ||||
For financial reporting purposes, our 2013 and 2012 acquisitions were accounted for using the acquisition method of accounting. These acquisitions resulted in recognition of goodwill in our financial statements reflecting the premium paid to acquire businesses that we believe are complementary to our existing operations and fit our growth strategy. During the nine months ended September 30, 2013, we recognized a net increase in goodwill of $153.5 million excluding the effect of foreign currency translation (see Note 9 – Goodwill and Other Intangible Assets, in the Notes to the Condensed Consolidated Financial Statements). A net increase of $62.8 million was assigned to our United States reporting segment, and $90.7 million was assigned to our International reporting segment. Approximately $70.2 million of the goodwill recognized during the nine months ended September 30, 2013 will be deductible for income taxes. | ||||||||
During the nine months ended September 30, 2013, we recognized a net increase in intangible assets of $79.8 million excluding the effect of foreign currency translation. The changes include $67.9 million in the estimated fair value of acquired customer relationships with amortizable lives of 15 to 40 years, $5.8 million in permits with indefinite lives, $5.8 million in tradename with indefinite life, $0.1 million in tradenames with amortizable lives of 10 to 15 years, and $0.2 million in non-competes with amortizable life of 5 years. | ||||||||
The purchase prices for these acquisitions in excess of acquired tangible assets have been primarily allocated to goodwill and other intangibles and are preliminary, pending completion of certain intangible asset valuations and completion accounts. The following table summarizes the preliminary purchase price allocation for current period acquisitions and other adjustments to purchase price allocations during the nine months ended September 30, 2013: | ||||||||
In thousands | ||||||||
Fixed assets | $ | 10,683 | ||||||
Intangibles | 79,798 | |||||||
Goodwill | 153,482 | |||||||
Net other assets/ (liabilities) | (3,156 | ) | ||||||
Debt | (3,642 | ) | ||||||
Net deferred tax liabilities | (12,521 | ) | ||||||
Noncontrolling interests | (4,212 | ) | ||||||
Total purchase price allocation | $ | 220,432 | ||||||
During the nine months ended September 30, 2013 and 2012, the Company incurred $6.2 million and $6.2 million, respectively, of acquisition related expenses. These expenses are included with SG&A on our Condensed Consolidated Statements of Income. |
NEW_ACCOUNTING_STANDARDS
NEW ACCOUNTING STANDARDS | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes and Error Corrections [Abstract] | ' |
NEW ACCOUNTING STANDARDS | ' |
NEW ACCOUNTING STANDARDS | |
Accounting Standards Recently Adopted | |
Testing Indefinite-Lived Intangible Assets for Impairment | |
On January 1, 2013 we adopted guidance allowing a company to perform a qualitative assessment in determining whether an indefinite lived intangible asset is impaired. This new guidance is similar to the previously issued guidance allowing a qualitative assessment when performing annual goodwill impairment testing. The guidance also changes when a company should perform an interim period test for impairment, allowing for positive evidence to offset negative evidence when determining whether an interim impairment test is required. The new guidance does not affect the ultimate outcome of an impairment test; therefore there is no impact on our financial statements. We perform our annual test for impairment for indefinite lived intangibles in the fourth quarter. | |
Accounting Standards Issued But Not Yet Adopted | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July of 2013, the Financial Accounting Standards Board issued guidance on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For example, an entity should not evaluate whether the deferred tax asset expires before the statute of limitations on the tax position or whether the deferred tax asset may be used prior to the unrecognized tax benefit being settled. Both prospective and retrospective application may be applied. This guidance becomes effective for us beginning January 1, 2014; we are in the process of evaluating retrospective versus prospective application. This update affects presentation only. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | ||||||||||||||||
Level 1 – Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. | ||||||||||||||||
Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy levels. The impact of our creditworthiness has been considered in the fair value measurements noted below. In addition, the fair value measurement of a liability must reflect the nonperformance risk of an entity. | ||||||||||||||||
In thousands | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Total as of | Level 1 | Level 2 | Level 3 | |||||||||||||
September 30, 2013 | Inputs | Inputs | Inputs | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 63,580 | $ | 63,580 | $ | — | $ | — | ||||||||
Short-term investments | 447 | 447 | — | — | ||||||||||||
Total assets | $ | 64,027 | $ | 64,027 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 13,943 | $ | — | $ | — | $ | 13,943 | ||||||||
Total liabilities | $ | 13,943 | $ | — | $ | — | $ | 13,943 | ||||||||
In thousands | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Total as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2012 | Inputs | Inputs | Inputs | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 31,324 | $ | 31,324 | $ | — | $ | — | ||||||||
Short-term investments | 503 | 503 | — | — | ||||||||||||
Total assets | $ | 31,827 | $ | 31,827 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 18,511 | $ | — | $ | — | $ | 18,511 | ||||||||
Total liabilities | $ | 18,511 | $ | — | $ | — | $ | 18,511 | ||||||||
We had contingent consideration liabilities recorded using Level 3 inputs in the amount of $13.9 million, of which $8.5 million is classified as current liabilities at September 30, 2013, and $18.5 million at December 31, 2012. Contingent consideration represents amounts to be paid as part of acquisition consideration only if certain future events occur. These events are usually acquisition targets for revenues or earnings. We arrive at the fair value of contingent consideration by applying a weighted probability of potential outcomes to the maximum possible payout. The calculation of these potential outcomes is dependent on both past financial performance and management assumptions about future performance. If the financial performance measures were all fully met, our maximum liability would be $15.1 million at September 30, 2013. Contingent consideration liabilities are reassessed each quarter and are reflected in the condensed consolidated balance sheets as part of “Other current liabilities” or “Other liabilities”. Changes to contingent consideration are reflected in the table below: | ||||||||||||||||
In thousands | ||||||||||||||||
Contingent consideration at December 31, 2012 | $ | 18,511 | ||||||||||||||
Increases due to acquisitions | 3,378 | |||||||||||||||
Decrease due to payments | (6,745 | ) | ||||||||||||||
Changes due to currency fluctuations | (894 | ) | ||||||||||||||
Changes in fair value reflected in Selling, general, and administrative expenses | (307 | ) | ||||||||||||||
Contingent consideration at September 30, 2013 | $ | 13,943 | ||||||||||||||
Fair Value of Debt: At September 30, 2013, the fair value of the Company’s debt obligations was estimated, using Level 2 inputs, at $1.39 billion compared to a carrying amount of $1.40 billion. At December 31, 2012, the fair value of the Company’s debt obligations was estimated, using Level 2 inputs, at $1.39 billion compared to a carrying amount of $1.36 billion. The fair values were estimated using an income approach by applying market interest rates for comparable instruments. The Company has no current plans to retire a significant amount of its debt prior to maturity. | ||||||||||||||||
There were no movements of items between fair value hierarchies. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
We file U.S. federal income tax returns and income tax returns in various states and foreign jurisdictions. | |
The Company has recorded accruals to cover uncertain tax positions taken on previously filed tax returns. Such liabilities relate to additional taxes, interest and penalties the Company may be required to pay in various tax jurisdictions. During the course of examinations by various taxing authorities, proposed adjustments may be asserted. The Company evaluates such items on a case-by-case basis and adjusts the accrual for uncertain tax positions. During the quarter ended September 30, 2013 we had net decreases to our accruals related to a reassessment of previous and current uncertain tax positions offset by increases during the first and second quarter of 2013. Our balance at September 30, 2013 is materially the same as at December 31, 2012. |
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
STOCK BASED COMPENSATION | ' | |||||||||||||||
STOCK BASED COMPENSATION | ||||||||||||||||
At September 30, 2013, we had the following stock option and stock purchase plans: | ||||||||||||||||
• | the 2011 Incentive Stock Plan, which our stockholders approved in May 2011; | |||||||||||||||
• | the 2008 Incentive Stock Plan, which our stockholders approved in May 2008; | |||||||||||||||
• | the 2005 Incentive Stock Plan, which our stockholders approved in April 2005; | |||||||||||||||
• | the 2000 Nonstatutory Stock Option Plan, which expired in February 2010; | |||||||||||||||
• | the 1997 Stock Option Plan, which expired in January 2007; | |||||||||||||||
• | the 1996 Directors Stock Option Plan, which expired in May 2006; and | |||||||||||||||
• | Employee Stock Purchase Plan (“ESPP”), which our stockholders approved in May 2001. | |||||||||||||||
The following table presents the total stock-based compensation expense resulting from stock option awards, restricted stock units (“RSUs”), and the ESPP included in the Condensed Consolidated Statements of Income: | ||||||||||||||||
In thousands | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenues – stock option plan | $ | 32 | $ | 34 | $ | 102 | $ | 105 | ||||||||
Selling, general and administrative – stock option plan | 3,561 | 3,421 | 10,265 | 10,329 | ||||||||||||
Selling, general and administrative – RSUs | 389 | 389 | 967 | 1,077 | ||||||||||||
Selling, general and administrative – ESPP | 163 | 285 | 754 | 835 | ||||||||||||
Total pre-tax expense | $ | 4,145 | $ | 4,129 | $ | 12,088 | $ | 12,346 | ||||||||
The following table sets forth the tax benefits related to stock compensation: | ||||||||||||||||
In thousands | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Tax benefit recognized in Statement of Income | $ | 1,109 | $ | 1,631 | $ | 3,493 | $ | 4,239 | ||||||||
Excess tax benefit realized | 3,981 | 9,471 | 12,354 | 20,994 | ||||||||||||
The Black-Scholes option-pricing model is used in determining the fair value of each option grant. The expected term of options granted is based on historical experience. Expected volatility is based upon historical volatility. The expected dividend yield is zero. The risk-free interest rate is based upon the U.S. Treasury yield rates for a comparable period. The assumptions that we used in the Black-Scholes model are as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Weighted average fair value at grant date | $ | 26.51 | $ | 20.68 | $ | 21.99 | $ | 20.09 | ||||||||
Expected term (in years) | 5.75 | 6 | 5.83 | 6 | ||||||||||||
Expected volatility | 26.2 | % | 27.52 | % | 27.05 | % | 27.9 | % | ||||||||
Expected dividend yield | — | % | — | % | — | % | — | % | ||||||||
Risk free interest rate | 1.67 | % | 0.79 | % | 1 | % | 1.06 | % | ||||||||
Stock option activity for the nine months ended September 30, 2013, was as follows: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Options | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price per | Contractual | |||||||||||||||
Share | Life | |||||||||||||||
(in years) | ||||||||||||||||
Outstanding at December 31, 2012 | 5,543,664 | $ | 61.69 | |||||||||||||
Granted | 1,050,080 | 96.94 | ||||||||||||||
Exercised | (705,247 | ) | 48.68 | |||||||||||||
Canceled or expired | (107,933 | ) | 75.19 | |||||||||||||
Outstanding at September 30, 2013 | 5,780,564 | $ | 69.43 | 6.74 | $ | 265,744,014 | ||||||||||
Exercisable at September 30, 2013 | 2,919,271 | $ | 56.35 | 5.41 | $ | 172,389,576 | ||||||||||
Vested and expected to vest in the future at September 30, 2013 | 5,024,369 | $ | 66.71 | 6.48 | $ | 244,644,342 | ||||||||||
The total exercise intrinsic value represents the total pre-tax value (the difference between the sales price on that trading day in the quarter ended September 30, and the exercise price associated with the respective option). | ||||||||||||||||
In thousands | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Total exercise intrinsic value of options exercised | $ | 12,809 | $ | 28,558 | $ | 40,537 | $ | 68,582 | ||||||||
RSUs activity for the nine months ended September 30, 2013, is summarized below. RSUs vest at the end of three or five years. Our 2008 and 2011 Plans include a share reserve related to RSUs granted at a 2-1 ratio. | ||||||||||||||||
Number of | Weighted | Aggregate | ||||||||||||||
Units | Average | Intrinsic | ||||||||||||||
Remaining | Value | |||||||||||||||
Contractual | ||||||||||||||||
Life | ||||||||||||||||
(in years) | ||||||||||||||||
Outstanding at December 31, 2012 | 68,202 | |||||||||||||||
Granted | 17,800 | |||||||||||||||
Released | (12,750 | ) | ||||||||||||||
Forfeited | (907 | ) | ||||||||||||||
Outstanding at September 30, 2013 | 72,345 | 2.9 | $ | 8,348,613 | ||||||||||||
Exercisable at September 30, 2013 | — | 0 | $ | — | ||||||||||||
COMMON_STOCK
COMMON STOCK | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Equity [Abstract] | ' | ||||||||||
COMMON STOCK | ' | ||||||||||
COMMON STOCK | |||||||||||
The following table provides information about our repurchase of shares of our common stock during the nine months ended September 30, 2013: | |||||||||||
Number of | Amount Paid | Average | |||||||||
Shares | for | Price Paid | |||||||||
Repurchased | Repurchases | per Share | |||||||||
and | (000’s) | ||||||||||
Canceled | |||||||||||
Three months ended March 31, 2013 | 74,820 | $ | 7,160 | $ | 95.7 | ||||||
Three months ended June 30, 2013 | 540,390 | 59,015 | 109.21 | ||||||||
Three months ended September 30, 2013 | 421,060 | 48,356 | 114.84 | ||||||||
Nine months ended September 30, 2013 | 1,036,270 | $ | 114,531 | $ | 110.52 | ||||||
Three months ended March 31, 2012 | 38,552 | $ | 2,945 | $ | 76.38 | ||||||
Three months ended June 30, 2012 | — | — | — | ||||||||
Three months ended September 30, 2012 | 43,500 | 3,913 | 89.97 | ||||||||
Nine months ended September 30, 2012 | 82,052 | $ | 6,858 | $ | 83.58 | ||||||
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||||||||
EARNINGS PER COMMON SHARE | ||||||||||||||||
Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and RSUs. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | ||||||||||||||||
In thousands, except share and per share data | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Numerator for basic earnings per share Net income attributable to Stericycle, Inc. | $ | 80,547 | $ | 65,477 | $ | 233,208 | $ | 197,927 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per share weighted average shares | 85,849,656 | 85,748,998 | 86,021,764 | 85,251,002 | ||||||||||||
Effect of diluted securities: | ||||||||||||||||
Employee stock options | 1,551,909 | 1,556,781 | 1,475,512 | 1,660,227 | ||||||||||||
Denominator for diluted earnings per share-adjusted weighted average shares and after assumed conversions | 87,401,565 | 87,305,779 | 87,497,276 | 86,911,229 | ||||||||||||
Earnings per share – Basic | $ | 0.94 | $ | 0.76 | $ | 2.71 | $ | 2.32 | ||||||||
Earnings per share – Diluted | $ | 0.92 | $ | 0.75 | $ | 2.67 | $ | 2.28 | ||||||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||||||
Goodwill and other identifiable indefinite lived intangibles are not amortized, but are subject to an annual impairment test, or more frequent testing if circumstances indicate that they may be impaired. | ||||||||||||||||||||||||
We have two geographical reporting segments, “United States” and “International”, both of which have goodwill. The changes in the carrying amount of goodwill since December 31, 2011, by reportable segment, were as follows: | ||||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||
United States | International | Total | ||||||||||||||||||||||
Balance as of December 31, 2011 | $ | 1,506,416 | $ | 407,287 | $ | 1,913,703 | ||||||||||||||||||
Goodwill acquired during year | 114,931 | 62,145 | 177,076 | |||||||||||||||||||||
Goodwill allocation adjustments | (5,061 | ) | (24,859 | ) | (29,920 | ) | ||||||||||||||||||
Sale of business | — | (1,178 | ) | (1,178 | ) | |||||||||||||||||||
Changes due to currency fluctuation | — | 5,422 | 5,422 | |||||||||||||||||||||
Balance as of December 31, 2012 | 1,616,286 | 448,817 | 2,065,103 | |||||||||||||||||||||
Goodwill acquired during year | 58,260 | 90,620 | 148,880 | |||||||||||||||||||||
Goodwill allocation adjustments | 4,515 | 87 | 4,602 | |||||||||||||||||||||
Changes due to currency fluctuation | — | (10,740 | ) | (10,740 | ) | |||||||||||||||||||
Balance as of September 30, 2013 | $ | 1,679,061 | $ | 528,784 | $ | 2,207,845 | ||||||||||||||||||
Current year adjustments to goodwill for certain 2012 acquisitions are primarily due to the finalization of intangible asset valuations. | ||||||||||||||||||||||||
During the quarter ended June 30, 2013, we performed our annual goodwill impairment evaluation for our three reporting units, Domestic Regulated Waste, Domestic Regulated Recall and Returns Management Services, and International. We calculated fair value for our reporting units using two methods, one a market approach and the other an income approach. Both the market and income approaches indicated no impairment to goodwill to any of our three reporting units. | ||||||||||||||||||||||||
Market Approach: Our market approach begins by calculating the market capitalization of the Company using the average stock price for the prior twelve months and the outstanding share count at June 30, 2013. We then look at the Company's Earnings Before Interest, Tax, Depreciation, and Amortization (“EBITDA”), adjusted for stock compensation expense and other items, such as change in fair value of contingent consideration, restructuring and plant closure costs, and litigation settlement for the prior twelve months. The calculated market capitalization is divided by the modified EBITDA to arrive at a valuation multiple. The fair value of each reporting unit is then calculated by taking the product of the valuation multiple and the trailing twelve month modified EBITDA of that reporting unit. The fair value was then compared to the reporting units' book value and determined to be in excess of the book value. We believe that starting with the fair value of the company as a whole is a reasonable measure as that fair value is then allocated to each reporting unit based on that reporting unit's individual earnings. A sustained drop in our stock price would have a negative impact to our fair value calculations. A temporary drop in earnings of a reporting unit would have a negative impact to our fair value calculations. | ||||||||||||||||||||||||
The results of our goodwill impairment test using the market approach indicated the fair value of our reporting units exceeded book value by a substantial amount, in excess of 100% of book value. | ||||||||||||||||||||||||
Income Approach: The income approach uses expected future cash flows of each reporting unit and discounts those cash flows to present values. Expected future cash flows are calculated using management assumptions of internal growth, capital expenditures, and cost efficiencies. Future acquisitions are not included in the expected future cash flows. We use a discount rate based on our Company calculated weighted average cost of capital which is adjusted for each of our reporting units based on size risk premium and country risk premium. Significant assumptions used in the income approach include realization of future cash flows and the discount rate used to present value those cash flows. | ||||||||||||||||||||||||
The results of our goodwill impairment test using the income approach indicated the fair value of our reporting units exceeded book value by a substantial amount; in excess of 100%. | ||||||||||||||||||||||||
We perform our annual impairment analysis of our indefinite lived intangibles (facility permits) during the quarter ended December 31 of each year. | ||||||||||||||||||||||||
Our finite-lived intangible assets are amortized over their useful lives. We have determined that our customer relationships have useful lives from 14 to 40 years based upon the type of customer, with a weighted average remaining useful life of 25.9 years. We have covenants not-to-compete intangibles with useful lives from 3 to 14 years, with a weighted average remaining useful life of 4.1 years. We have tradename intangibles with useful lives from 10 to 40 years, with a weighted average remaining useful life of 15.7 years. We have license agreements with useful life of 5 years, with a weighted average remaining useful life of 2.1 years. We have determined that our permits have indefinite lives due to our ability to renew these permits with minimal additional cost, and therefore these are not amortized. | ||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the values of the intangible assets were as follows: | ||||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||
30-Sep-13 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Amortizable intangibles: | ||||||||||||||||||||||||
Covenants not-to-compete | $ | 10,189 | $ | 5,945 | $ | 4,244 | $ | 10,993 | $ | 5,843 | $ | 5,150 | ||||||||||||
Customer relationships | 664,295 | 74,893 | 589,402 | 602,095 | 57,236 | 544,859 | ||||||||||||||||||
Tradenames | 5,058 | 941 | 4,117 | 4,922 | 712 | 4,210 | ||||||||||||||||||
License agreements | 611 | 390 | 221 | 720 | 420 | 300 | ||||||||||||||||||
Other | 89 | 11 | 78 | 89 | 4 | 85 | ||||||||||||||||||
Indefinite lived intangibles: | ||||||||||||||||||||||||
Operating permits | 116,949 | — | 116,949 | 112,867 | — | 112,867 | ||||||||||||||||||
Tradenames | 5,800 | — | 5,800 | — | — | — | ||||||||||||||||||
Total | $ | 802,991 | $ | 82,180 | $ | 720,811 | $ | 731,686 | $ | 64,215 | $ | 667,471 | ||||||||||||
During the quarters ended September 30, 2013 and 2012, the aggregate amortization expense was $6.7 million and $5.6 million, respectively. For nine months ended September 30, 2013 and 2012, the aggregate amortization expense was $19.9 million and $15.7 million, respectively. | ||||||||||||||||||||||||
The estimated amortization expense for each of the next five years, assuming no additional amortizable intangible assets, is as follows for the years ended December 31: | ||||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||
2013 | $ | 26,483 | ||||||||||||||||||||||
2014 | 28,295 | |||||||||||||||||||||||
2015 | 27,964 | |||||||||||||||||||||||
2016 | 27,837 | |||||||||||||||||||||||
2017 | 27,593 | |||||||||||||||||||||||
Future amortization expense may fluctuate depending on changes in foreign currency rates, future acquisitions, or changes to the estimated amortizable life of the intangibles. The estimates for amortization expense noted above are based upon foreign exchange rates as of September 30, 2013. |
DEBT
DEBT | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
DEBT | ' | |||||||
DEBT | ||||||||
Long-term debt consisted of the following: | ||||||||
In thousands | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Obligations under capital leases | $ | 6,975 | $ | 5,234 | ||||
$1 billion senior credit facility weighted average rate 2.02%, due in 2016 | 230,882 | 225,931 | ||||||
$100 million private placement notes 5.64%, due in 2015 | 100,000 | 100,000 | ||||||
$175 million private placement notes 3.89%, due in 2017 | 175,000 | 175,000 | ||||||
$125 million private placement notes 2.68%, due in 2019 | 125,000 | 125,000 | ||||||
$225 million private placement notes 4.47%, due in 2020 | 225,000 | 225,000 | ||||||
$125 million private placement notes 3.26%, due in 2022 | 125,000 | 125,000 | ||||||
Acquisition notes weighted average rate of 2.22% and weighted average maturity of 3.5 years | 280,818 | 235,856 | ||||||
Foreign bank debt weighted average rate 5.21% and weighted average maturity of 1.4 years | 134,494 | 139,063 | ||||||
Total debt | 1,403,169 | 1,356,084 | ||||||
Less: current portion of total debt | 107,577 | 87,781 | ||||||
Long-term portion of total debt | $ | 1,295,592 | $ | 1,268,303 | ||||
Our senior credit facility and our private placement notes all require us to comply with various financial, reporting and other covenants and restrictions, including a restriction on dividend payments. The financial debt covenants are the same for the senior credit facility and the private placement notes. At September 30, 2013, we were in compliance with all of our financial debt covenants. | ||||||||
As of September 30, 2013 and December 31, 2012, we had $147.3 million and $157.6 million, respectively, committed to outstanding letters of credit under our senior credit facility. The unused portion of the revolving credit facility as of September 30, 2013 and December 31, 2012 was $621.8 million and $616.5 million, respectively. | ||||||||
Guarantees | ||||||||
We have guaranteed a loan to JPMorganChase Bank N.A. on behalf of Shiraishi-Sogyo Co. Ltd (“Shiraishi”). Shiraishi is a customer in Japan that is expanding its medical waste management business and has a loan with a current balance of $5.0 million with JPMorganChase Bank N.A. that matures on May 31, 2014. We also have extended loans to Shiraishi for approximately $15.5 million, reflected in the Consolidated Balance Sheet as part of long term "Other assets", in support of its medical waste business. There is a collateral agreement in place on the assets of Shiraishi and related companies in support of amounts owed. |
GEOGRAPHIC_INFORMATION
GEOGRAPHIC INFORMATION | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
GEOGRAPHIC INFORMATION | ' | |||||||||||||||
GEOGRAPHIC INFORMATION | ||||||||||||||||
Management has determined that we have two reportable segments, United States (which includes Puerto Rico) and International. Revenues are attributed to countries based on the location of customers. The same accounting principles and critical accounting policies are used in the preparation of the financial statements for both reporting segments. | ||||||||||||||||
Detailed information for our United States reporting segment is as follows: | ||||||||||||||||
In thousands | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Regulated waste management services | $ | 353,049 | $ | 319,465 | $ | 1,040,636 | $ | 921,772 | ||||||||
Regulated recall and returns management services | 25,071 | 28,741 | 71,334 | 93,482 | ||||||||||||
Total revenue | 378,120 | 348,206 | 1,111,970 | 1,015,254 | ||||||||||||
Net interest expense | 10,786 | 10,221 | 32,283 | 30,807 | ||||||||||||
Income before income taxes | 103,925 | 92,590 | 299,281 | 269,046 | ||||||||||||
Income taxes | 34,687 | 31,566 | 109,499 | 98,450 | ||||||||||||
Net income attributable to Stericycle, Inc. | $ | 69,238 | $ | 61,024 | $ | 189,782 | $ | 170,596 | ||||||||
Depreciation and amortization | $ | 12,041 | $ | 11,429 | $ | 37,303 | $ | 32,932 | ||||||||
Detailed information for our International reporting segment is as follows: | ||||||||||||||||
In thousands | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Regulated waste management services | $ | 156,459 | $ | 132,278 | $ | 462,938 | $ | 394,257 | ||||||||
Net interest expense | 2,530 | 2,710 | 7,325 | 7,457 | ||||||||||||
Income before income taxes | 16,813 | 8,538 | 58,724 | 40,670 | ||||||||||||
Income taxes | 5,219 | 3,816 | 14,009 | 11,833 | ||||||||||||
Net income | 11,594 | 4,722 | 44,715 | 28,837 | ||||||||||||
Less: net income attributable to noncontrolling interests | 285 | 269 | 1,289 | 1,506 | ||||||||||||
Net income attributable to Stericycle, Inc. | $ | 11,309 | $ | 4,453 | $ | 43,426 | $ | 27,331 | ||||||||
Depreciation and amortization | $ | 9,809 | $ | 8,016 | $ | 27,810 | $ | 22,257 | ||||||||
LEGAL_PROCEEDINGS
LEGAL PROCEEDINGS | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
LEGAL PROCEEDINGS | ' |
LEGAL PROCEEDINGS | |
We operate in a highly regulated industry and must deal with regulatory inquiries or investigations from time to time that may be instituted for a variety of reasons. We are also involved in a variety of civil litigation from time to time. | |
As we have previously disclosed, we were served on March 12, 2013 with a class action complaint filed in the U.S. District Court for the Western District of Pennsylvania by an individual plaintiff for itself and on behalf of all other “similarly situated” customers of ours. The complaint alleges, among other things, that we imposed unauthorized or excessive price increases and other charges on our customers in breach of our contracts and in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act. The complaint seeks certification of the lawsuit as a class action and the award to class members of appropriate damages and injunctive relief. | |
The Pennsylvania class action complaint was filed in the wake of a settlement with the State of New York of an investigation under the New York False Claims Act (which the class action complaint describes at some length). The New York investigation arose out of a qui tam (or “whistle blower”) complaint under the federal False Claims Act and comparable state statutes which was filed under seal in the U.S. District Court for the Northern District of Illinois in April 2008 by a former employee of ours. The complaint was filed on behalf of the United States and 14 states and the District of Columbia. Tennessee, Massachusetts, Virginia and North Carolina have issued civil investigative demands to explore the allegations made on their behalf in the qui tam complaint but have not yet decided whether to join the Illinois action. | |
Following the filing of the Pennsylvania class action complaint, we were served with class action complaints filed in federal court in California, Florida, Illinois and Utah and in state court in California. These complaints assert claims and allegations substantially similar to those made in the Pennsylvania class action complaint. All of these cases appear to be follow-on litigation to our settlement with the State of New York. On August 9, 2013, the Judicial Panel on Multidistrict Litigation granted our Motion to Transfer these related actions to the Northern District of Illinois for centralized pretrial proceedings. | |
We believe that we have operated in accordance with the terms of our customer contracts and that these complaints are without merit. We intend to vigorously defend ourselves against each of these lawsuits. | |
On May 28, 2013, we received a notice of violation and order to comply from the State of Utah Division of Air Quality alleging violations of certain conditions of the operating permit for our incineration facility in North Salt Lake relating to emissions and emissions testing at the facility. We have subsequently completed testing, in accordance with protocols approved by the Division of Air Quality, that demonstrates that the facility is currently operating in compliance with applicable emissions standards and our permit conditions. We filed a formal response to the notice of violation on September 27, 2013 and are in discussions with the Division of Air Quality regarding a resolution of this matter. |
ACQUISITIONS_AND_DIVESTITURES_
ACQUISITIONS AND DIVESTITURES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Summary of Location of Acquisitions | ' | |||||||
The following table summarizes the locations of our acquisitions for the nine months ended September 30, 2013: | ||||||||
Acquisition Locations | 2013 | |||||||
United States | 12 | |||||||
Argentina | 3 | |||||||
Brazil | 2 | |||||||
Canada | 2 | |||||||
Chile | 1 | |||||||
Japan | 3 | |||||||
Mexico | 1 | |||||||
Portugal | 2 | |||||||
Romania | 4 | |||||||
Spain | 2 | |||||||
United Kingdom | 9 | |||||||
Total | 41 | |||||||
Aggregate Purchase Price Paid for Acquisitions and Other Adjustments to Consideration | ' | |||||||
The following table summarizes the aggregate purchase price paid for acquisitions and other adjustments of consideration to be paid for acquisitions during the nine months ended September 30: | ||||||||
In thousands | ||||||||
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Cash | $ | 131,902 | $ | 148,073 | ||||
Promissory notes | 56,602 | 24,496 | ||||||
Deferred consideration | 28,550 | 18,259 | ||||||
Contingent consideration | 3,378 | 13,606 | ||||||
Total purchase price | $ | 220,432 | $ | 204,434 | ||||
Preliminary Purchase Price Allocation for Current Period Acquisitions and Other Adjustments to Purchase Price Allocations | ' | |||||||
The following table summarizes the preliminary purchase price allocation for current period acquisitions and other adjustments to purchase price allocations during the nine months ended September 30, 2013: | ||||||||
In thousands | ||||||||
Fixed assets | $ | 10,683 | ||||||
Intangibles | 79,798 | |||||||
Goodwill | 153,482 | |||||||
Net other assets/ (liabilities) | (3,156 | ) | ||||||
Debt | (3,642 | ) | ||||||
Net deferred tax liabilities | (12,521 | ) | ||||||
Noncontrolling interests | (4,212 | ) | ||||||
Total purchase price allocation | $ | 220,432 | ||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
In thousands | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Total as of | Level 1 | Level 2 | Level 3 | |||||||||||||
September 30, 2013 | Inputs | Inputs | Inputs | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 63,580 | $ | 63,580 | $ | — | $ | — | ||||||||
Short-term investments | 447 | 447 | — | — | ||||||||||||
Total assets | $ | 64,027 | $ | 64,027 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 13,943 | $ | — | $ | — | $ | 13,943 | ||||||||
Total liabilities | $ | 13,943 | $ | — | $ | — | $ | 13,943 | ||||||||
In thousands | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Total as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2012 | Inputs | Inputs | Inputs | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 31,324 | $ | 31,324 | $ | — | $ | — | ||||||||
Short-term investments | 503 | 503 | — | — | ||||||||||||
Total assets | $ | 31,827 | $ | 31,827 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 18,511 | $ | — | $ | — | $ | 18,511 | ||||||||
Total liabilities | $ | 18,511 | $ | — | $ | — | $ | 18,511 | ||||||||
Changes to Contingent Consideration | ' | |||||||||||||||
Changes to contingent consideration are reflected in the table below: | ||||||||||||||||
In thousands | ||||||||||||||||
Contingent consideration at December 31, 2012 | $ | 18,511 | ||||||||||||||
Increases due to acquisitions | 3,378 | |||||||||||||||
Decrease due to payments | (6,745 | ) | ||||||||||||||
Changes due to currency fluctuations | (894 | ) | ||||||||||||||
Changes in fair value reflected in Selling, general, and administrative expenses | (307 | ) | ||||||||||||||
Contingent consideration at September 30, 2013 | $ | 13,943 | ||||||||||||||
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation Expense Resulting from Stock Option Awards, Restricted stock units ("RSU") and ESPP | ' | |||||||||||||||
The following table presents the total stock-based compensation expense resulting from stock option awards, restricted stock units (“RSUs”), and the ESPP included in the Condensed Consolidated Statements of Income: | ||||||||||||||||
In thousands | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenues – stock option plan | $ | 32 | $ | 34 | $ | 102 | $ | 105 | ||||||||
Selling, general and administrative – stock option plan | 3,561 | 3,421 | 10,265 | 10,329 | ||||||||||||
Selling, general and administrative – RSUs | 389 | 389 | 967 | 1,077 | ||||||||||||
Selling, general and administrative – ESPP | 163 | 285 | 754 | 835 | ||||||||||||
Total pre-tax expense | $ | 4,145 | $ | 4,129 | $ | 12,088 | $ | 12,346 | ||||||||
Tax Benefits Related to Stock Compensation | ' | |||||||||||||||
The following table sets forth the tax benefits related to stock compensation: | ||||||||||||||||
In thousands | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Tax benefit recognized in Statement of Income | $ | 1,109 | $ | 1,631 | $ | 3,493 | $ | 4,239 | ||||||||
Excess tax benefit realized | 3,981 | 9,471 | 12,354 | 20,994 | ||||||||||||
Assumptions used in Black-Scholes Model | ' | |||||||||||||||
The assumptions that we used in the Black-Scholes model are as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Weighted average fair value at grant date | $ | 26.51 | $ | 20.68 | $ | 21.99 | $ | 20.09 | ||||||||
Expected term (in years) | 5.75 | 6 | 5.83 | 6 | ||||||||||||
Expected volatility | 26.2 | % | 27.52 | % | 27.05 | % | 27.9 | % | ||||||||
Expected dividend yield | — | % | — | % | — | % | — | % | ||||||||
Risk free interest rate | 1.67 | % | 0.79 | % | 1 | % | 1.06 | % | ||||||||
Stock Option Activity | ' | |||||||||||||||
Stock option activity for the nine months ended September 30, 2013, was as follows: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Options | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price per | Contractual | |||||||||||||||
Share | Life | |||||||||||||||
(in years) | ||||||||||||||||
Outstanding at December 31, 2012 | 5,543,664 | $ | 61.69 | |||||||||||||
Granted | 1,050,080 | 96.94 | ||||||||||||||
Exercised | (705,247 | ) | 48.68 | |||||||||||||
Canceled or expired | (107,933 | ) | 75.19 | |||||||||||||
Outstanding at September 30, 2013 | 5,780,564 | $ | 69.43 | 6.74 | $ | 265,744,014 | ||||||||||
Exercisable at September 30, 2013 | 2,919,271 | $ | 56.35 | 5.41 | $ | 172,389,576 | ||||||||||
Vested and expected to vest in the future at September 30, 2013 | 5,024,369 | $ | 66.71 | 6.48 | $ | 244,644,342 | ||||||||||
Intrinsic Value of Options Exercised | ' | |||||||||||||||
The total exercise intrinsic value represents the total pre-tax value (the difference between the sales price on that trading day in the quarter ended September 30, and the exercise price associated with the respective option). | ||||||||||||||||
In thousands | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Total exercise intrinsic value of options exercised | $ | 12,809 | $ | 28,558 | $ | 40,537 | $ | 68,582 | ||||||||
Restricted Stock Units Activity | ' | |||||||||||||||
RSUs activity for the nine months ended September 30, 2013, is summarized below. RSUs vest at the end of three or five years. Our 2008 and 2011 Plans include a share reserve related to RSUs granted at a 2-1 ratio. | ||||||||||||||||
Number of | Weighted | Aggregate | ||||||||||||||
Units | Average | Intrinsic | ||||||||||||||
Remaining | Value | |||||||||||||||
Contractual | ||||||||||||||||
Life | ||||||||||||||||
(in years) | ||||||||||||||||
Outstanding at December 31, 2012 | 68,202 | |||||||||||||||
Granted | 17,800 | |||||||||||||||
Released | (12,750 | ) | ||||||||||||||
Forfeited | (907 | ) | ||||||||||||||
Outstanding at September 30, 2013 | 72,345 | 2.9 | $ | 8,348,613 | ||||||||||||
Exercisable at September 30, 2013 | — | 0 | $ | — | ||||||||||||
COMMON_STOCK_Tables
COMMON STOCK (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Equity [Abstract] | ' | ||||||||||
Repurchase of Shares of Common Stock | ' | ||||||||||
The following table provides information about our repurchase of shares of our common stock during the nine months ended September 30, 2013: | |||||||||||
Number of | Amount Paid | Average | |||||||||
Shares | for | Price Paid | |||||||||
Repurchased | Repurchases | per Share | |||||||||
and | (000’s) | ||||||||||
Canceled | |||||||||||
Three months ended March 31, 2013 | 74,820 | $ | 7,160 | $ | 95.7 | ||||||
Three months ended June 30, 2013 | 540,390 | 59,015 | 109.21 | ||||||||
Three months ended September 30, 2013 | 421,060 | 48,356 | 114.84 | ||||||||
Nine months ended September 30, 2013 | 1,036,270 | $ | 114,531 | $ | 110.52 | ||||||
Three months ended March 31, 2012 | 38,552 | $ | 2,945 | $ | 76.38 | ||||||
Three months ended June 30, 2012 | — | — | — | ||||||||
Three months ended September 30, 2012 | 43,500 | 3,913 | 89.97 | ||||||||
Nine months ended September 30, 2012 | 82,052 | $ | 6,858 | $ | 83.58 | ||||||
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Common Share | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | ||||||||||||||||
In thousands, except share and per share data | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Numerator for basic earnings per share Net income attributable to Stericycle, Inc. | $ | 80,547 | $ | 65,477 | $ | 233,208 | $ | 197,927 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per share weighted average shares | 85,849,656 | 85,748,998 | 86,021,764 | 85,251,002 | ||||||||||||
Effect of diluted securities: | ||||||||||||||||
Employee stock options | 1,551,909 | 1,556,781 | 1,475,512 | 1,660,227 | ||||||||||||
Denominator for diluted earnings per share-adjusted weighted average shares and after assumed conversions | 87,401,565 | 87,305,779 | 87,497,276 | 86,911,229 | ||||||||||||
Earnings per share – Basic | $ | 0.94 | $ | 0.76 | $ | 2.71 | $ | 2.32 | ||||||||
Earnings per share – Diluted | $ | 0.92 | $ | 0.75 | $ | 2.67 | $ | 2.28 | ||||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | |||||||||||||||||||||||
The changes in the carrying amount of goodwill since December 31, 2011, by reportable segment, were as follows: | ||||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||
United States | International | Total | ||||||||||||||||||||||
Balance as of December 31, 2011 | $ | 1,506,416 | $ | 407,287 | $ | 1,913,703 | ||||||||||||||||||
Goodwill acquired during year | 114,931 | 62,145 | 177,076 | |||||||||||||||||||||
Goodwill allocation adjustments | (5,061 | ) | (24,859 | ) | (29,920 | ) | ||||||||||||||||||
Sale of business | — | (1,178 | ) | (1,178 | ) | |||||||||||||||||||
Changes due to currency fluctuation | — | 5,422 | 5,422 | |||||||||||||||||||||
Balance as of December 31, 2012 | 1,616,286 | 448,817 | 2,065,103 | |||||||||||||||||||||
Goodwill acquired during year | 58,260 | 90,620 | 148,880 | |||||||||||||||||||||
Goodwill allocation adjustments | 4,515 | 87 | 4,602 | |||||||||||||||||||||
Changes due to currency fluctuation | — | (10,740 | ) | (10,740 | ) | |||||||||||||||||||
Balance as of September 30, 2013 | $ | 1,679,061 | $ | 528,784 | $ | 2,207,845 | ||||||||||||||||||
Values of Intangible Assets | ' | |||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the values of the intangible assets were as follows: | ||||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||
30-Sep-13 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Amortizable intangibles: | ||||||||||||||||||||||||
Covenants not-to-compete | $ | 10,189 | $ | 5,945 | $ | 4,244 | $ | 10,993 | $ | 5,843 | $ | 5,150 | ||||||||||||
Customer relationships | 664,295 | 74,893 | 589,402 | 602,095 | 57,236 | 544,859 | ||||||||||||||||||
Tradenames | 5,058 | 941 | 4,117 | 4,922 | 712 | 4,210 | ||||||||||||||||||
License agreements | 611 | 390 | 221 | 720 | 420 | 300 | ||||||||||||||||||
Other | 89 | 11 | 78 | 89 | 4 | 85 | ||||||||||||||||||
Indefinite lived intangibles: | ||||||||||||||||||||||||
Operating permits | 116,949 | — | 116,949 | 112,867 | — | 112,867 | ||||||||||||||||||
Tradenames | 5,800 | — | 5,800 | — | — | — | ||||||||||||||||||
Total | $ | 802,991 | $ | 82,180 | $ | 720,811 | $ | 731,686 | $ | 64,215 | $ | 667,471 | ||||||||||||
Estimated Amortization Expense | ' | |||||||||||||||||||||||
The estimated amortization expense for each of the next five years, assuming no additional amortizable intangible assets, is as follows for the years ended December 31: | ||||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||
2013 | $ | 26,483 | ||||||||||||||||||||||
2014 | 28,295 | |||||||||||||||||||||||
2015 | 27,964 | |||||||||||||||||||||||
2016 | 27,837 | |||||||||||||||||||||||
2017 | 27,593 | |||||||||||||||||||||||
DEBT_Tables
DEBT (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-term debt consisted of the following: | ||||||||
In thousands | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Obligations under capital leases | $ | 6,975 | $ | 5,234 | ||||
$1 billion senior credit facility weighted average rate 2.02%, due in 2016 | 230,882 | 225,931 | ||||||
$100 million private placement notes 5.64%, due in 2015 | 100,000 | 100,000 | ||||||
$175 million private placement notes 3.89%, due in 2017 | 175,000 | 175,000 | ||||||
$125 million private placement notes 2.68%, due in 2019 | 125,000 | 125,000 | ||||||
$225 million private placement notes 4.47%, due in 2020 | 225,000 | 225,000 | ||||||
$125 million private placement notes 3.26%, due in 2022 | 125,000 | 125,000 | ||||||
Acquisition notes weighted average rate of 2.22% and weighted average maturity of 3.5 years | 280,818 | 235,856 | ||||||
Foreign bank debt weighted average rate 5.21% and weighted average maturity of 1.4 years | 134,494 | 139,063 | ||||||
Total debt | 1,403,169 | 1,356,084 | ||||||
Less: current portion of total debt | 107,577 | 87,781 | ||||||
Long-term portion of total debt | $ | 1,295,592 | $ | 1,268,303 | ||||
GEOGRAPHIC_INFORMATION_Tables
GEOGRAPHIC INFORMATION (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Detailed Information for Reporting Segment | ' | |||||||||||||||
Detailed information for our United States reporting segment is as follows: | ||||||||||||||||
In thousands | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Regulated waste management services | $ | 353,049 | $ | 319,465 | $ | 1,040,636 | $ | 921,772 | ||||||||
Regulated recall and returns management services | 25,071 | 28,741 | 71,334 | 93,482 | ||||||||||||
Total revenue | 378,120 | 348,206 | 1,111,970 | 1,015,254 | ||||||||||||
Net interest expense | 10,786 | 10,221 | 32,283 | 30,807 | ||||||||||||
Income before income taxes | 103,925 | 92,590 | 299,281 | 269,046 | ||||||||||||
Income taxes | 34,687 | 31,566 | 109,499 | 98,450 | ||||||||||||
Net income attributable to Stericycle, Inc. | $ | 69,238 | $ | 61,024 | $ | 189,782 | $ | 170,596 | ||||||||
Depreciation and amortization | $ | 12,041 | $ | 11,429 | $ | 37,303 | $ | 32,932 | ||||||||
Detailed information for our International reporting segment is as follows: | ||||||||||||||||
In thousands | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Regulated waste management services | $ | 156,459 | $ | 132,278 | $ | 462,938 | $ | 394,257 | ||||||||
Net interest expense | 2,530 | 2,710 | 7,325 | 7,457 | ||||||||||||
Income before income taxes | 16,813 | 8,538 | 58,724 | 40,670 | ||||||||||||
Income taxes | 5,219 | 3,816 | 14,009 | 11,833 | ||||||||||||
Net income | 11,594 | 4,722 | 44,715 | 28,837 | ||||||||||||
Less: net income attributable to noncontrolling interests | 285 | 269 | 1,289 | 1,506 | ||||||||||||
Net income attributable to Stericycle, Inc. | $ | 11,309 | $ | 4,453 | $ | 43,426 | $ | 27,331 | ||||||||
Depreciation and amortization | $ | 9,809 | $ | 8,016 | $ | 27,810 | $ | 22,257 | ||||||||
BASIS_OF_PRESENTATION_Reclassi
BASIS OF PRESENTATION Reclassifications (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Reclassification from accrued liabilities | ($135,472) | ' | ($124,261) |
Reclassification to other current liabilities | 66,512 | ' | 26,698 |
Reclassification from changes in accrued liabilities | 21,322 | -14,945 | ' |
Reclassification to changes in other assets and liabilities | 41,084 | 11,994 | ' |
Restatement Adjustment [Member] | ' | ' | ' |
Reclassification from accrued liabilities | ' | ' | 11,100 |
Reclassification to other current liabilities | ' | ' | 11,100 |
Reclassification from changes in accrued liabilities | ' | 14,000 | ' |
Reclassification to changes in other assets and liabilities | ' | $14,000 | ' |
ACQUISITIONS_AND_DIVESTITURES_1
ACQUISITIONS AND DIVESTITURES - Summary of Acquisition Location (Detail) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | |
Entity | Entity | Entity | United States | Argentina | Brazil | Canada | Chile | Japan | Mexico | Portugal | Romania | Spain | United Kingdom | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Recall And Returns Management Services [Member] | Acquisition One [Member] | Acquisition Two [Member] | |
Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Argentina | Canada | Canada | Chile | Mexico | Portugal | Romania | Spain | United Kingdom | United Kingdom | United Kingdom | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | ||||
Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Brazil | Brazil | ||||||||||||||||
Entity | Entity | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of acquisitions completed | 17 | 12 | 41 | 12 | 3 | 2 | 2 | 1 | 3 | 1 | 2 | 4 | 2 | 9 | 12 | 2 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 3 | 1 | 1 | 1 |
ACQUISITIONS_AND_DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - Aggregate Purchase Price Paid for Acquisitions and Other Adjustments to Consideration (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Business Combinations [Abstract] | ' | ' |
Cash | $131,902 | $148,073 |
Promissory notes | 56,602 | 24,496 |
Deferred consideration | 28,550 | 18,259 |
Contingent consideration | 3,378 | 13,606 |
Total purchase price | $220,432 | $204,434 |
ACQUISITIONS_AND_DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES - Preliminary Purchase Price Allocation and Other Adjustments to Purchase Price Allocations (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill | $2,207,845 | $2,065,103 | $1,913,703 |
Series of Individually Immaterial Business Acquisitions [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Fixed assets | 10,683 | ' | ' |
Intangibles | 79,798 | ' | ' |
Goodwill | 153,482 | ' | ' |
Net other assets/ (liabilities) | -3,156 | ' | ' |
Debt | -3,642 | ' | ' |
Net deferred tax liabilities | -12,521 | ' | ' |
Noncontrolling interests | -4,212 | ' | ' |
Total purchase price allocation | $220,432 | ' | ' |
ACQUISITIONS_AND_DIVESTITURES_4
ACQUISITIONS AND DIVESTITURES - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Entity | Entity | Entity | United States | Argentina | Brazil | Canada | Chile | Japan | Mexico | Portugal | Romania | Spain | United Kingdom | International | Customer relationships | Customer relationships | Customer relationships | Tradenames | Tradenames | Tradenames | Covenants not-to-compete | Covenants not-to-compete | Covenants not-to-compete | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | Patient Communication Services | Patient Communication Services | Regulated Recall And Returns Management Services [Member] | 2013 Acquisitions | 2013 Acquisitions | 2013 Acquisitions | 2013 Acquisitions | 2013 Acquisitions | Acquisition One [Member] | Acquisition Two [Member] | Operating permits | Tradenames | ||
Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Entity | United States | United States | United States | Argentina | Canada | Canada | Chile | Japan | Japan | Mexico | Portugal | Portugal | Romania | Romania | Romania | Spain | Spain | United Kingdom | United Kingdom | United States | United Kingdom | United Kingdom | Customer relationships | Customer relationships | Tradenames | Tradenames | Covenants not-to-compete | Regulated Waste Management Service [Member] | Regulated Waste Management Service [Member] | |||||||||||
Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Entity | Minimum | Maximum | Minimum | Maximum | Brazil | Brazil | ||||||||||||||||||||||||||||||
Entity | Entity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of acquisitions completed | 17 | 12 | 41 | ' | 12 | 3 | 2 | 2 | 1 | 3 | 1 | 2 | 4 | 2 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | 2 | 1 | 1 | 1 | ' | ' | 1 | ' | 1 | ' | ' | 1 | 1 | ' | 1 | 3 | 1 | 2 | 1 | ' | ' | ' | ' | ' | 1 | 1 | ' | ' |
Number of businesses for which selected assets were acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 4 | 1 | 1 | ' | ' | ' | 1 | 2 | ' | 1 | ' | 2 | 1 | ' | ' | 1 | 1 | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, ownership percentage acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% | 100.00% | ' | ' | 51.00% | ' | 100.00% | ' | ' | 100.00% | 100.00% | ' | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ' | ' | ' | ' | ' | 100.00% | 70.00% | ' | ' |
Goodwill period increase decrease | ' | ' | $153.50 | ' | $62.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $90.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax deductible goodwill amount | 70.2 | ' | 70.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible Assets, Period Increase (Decrease) | ' | ' | 79.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67.9 | ' | ' | 0.1 | ' | ' | 0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.8 | 5.8 |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '14 years | '40 years | ' | '10 years | '40 years | ' | '3 years | '14 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | '40 years | '10 years | '15 years | '5 years | ' | ' | ' | ' |
Acquisition related expenses | ' | ' | $6.20 | $6.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_MEASUREMENTS_Fair_V
FAIR VALUE MEASUREMENTS - Fair Value Measurements (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Cash and cash equivalents | $63,580 | $31,324 |
Short-term investments | 447 | 503 |
Total assets | 64,027 | 31,827 |
Business Combination, Contingent Consideration, Liability | 13,943 | 18,511 |
Liabilities: | ' | ' |
Total liabilities | 13,943 | 18,511 |
Level 1 Inputs | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 63,580 | 31,324 |
Short-term investments | 447 | 503 |
Total assets | 64,027 | 31,827 |
Business Combination, Contingent Consideration, Liability | 0 | 0 |
Liabilities: | ' | ' |
Total liabilities | 0 | 0 |
Level 2 Inputs | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Total assets | 0 | 0 |
Business Combination, Contingent Consideration, Liability | 0 | 0 |
Liabilities: | ' | ' |
Total liabilities | 0 | 0 |
Level 3 Inputs | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Total assets | 0 | 0 |
Business Combination, Contingent Consideration, Liability | 13,943 | 18,511 |
Liabilities: | ' | ' |
Total liabilities | $13,943 | $18,511 |
FAIR_VALUE_MEASUREMENTS_Change
FAIR VALUE MEASUREMENTS - Changes to Contingent Consideration (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Business Combination, Contingent Consideration, Liability [Roll Forward] | ' | ' |
Contingent consideration at December 31, 2012 | $18,511 | ' |
Increases due to acquisitions | 3,378 | ' |
Decrease due to payments | -6,745 | ' |
Changes due to currency fluctuations | -894 | ' |
Changes in fair value reflected in Selling, general, and administrative expenses | -307 | 591 |
Contingent consideration at September 30, 2013 | $13,943 | ' |
FAIR_VALUE_MEASUREMENTS_Additi
FAIR VALUE MEASUREMENTS - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Business Combination, Contingent Consideration, Liability | $13,943,000 | $18,511,000 |
Debt obligations, carrying amount | 1,403,169,000 | 1,356,084,000 |
Maximum | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Maximum contingent liability if financial performance measures were fully met | 15,100,000 | ' |
Level 3 Inputs | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Business Combination, Contingent Consideration, Liability | 13,943,000 | 18,511,000 |
Level 2 Inputs | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Business Combination, Contingent Consideration, Liability | 0 | 0 |
Debt obligations, fair value | 1,390,000,000 | 1,390,000,000 |
Other Current Liabilities [Member] | Level 3 Inputs | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Business Combination, Contingent Consideration, Liability | $8,500,000 | ' |
STOCK_BASED_COMPENSATION_Expen
STOCK BASED COMPENSATION - Expense Resulting from Stock Option Awards and ESPP (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $4,145 | $4,129 | $12,088 | $12,346 |
Stock Options | Cost of revenues | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 32 | 34 | 102 | 105 |
Stock Options | Selling, general and administrative | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 3,561 | 3,421 | 10,265 | 10,329 |
Restricted Stock Units | Selling, general and administrative | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 389 | 389 | 967 | 1,077 |
Employee Stock Purchase Plan (ESPP) | Selling, general and administrative | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $163 | $285 | $754 | $835 |
STOCK_BASED_COMPENSATION_Tax_B
STOCK BASED COMPENSATION - Tax Benefits Related to Stock Compensation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Tax benefit recognized in Statement of Income | $1,109 | $1,631 | $3,493 | $4,239 |
Excess tax benefit realized | $3,981 | $9,471 | $12,354 | $20,994 |
STOCK_BASED_COMPENSATION_Assum
STOCK BASED COMPENSATION - Assumptions used in Black-Scholes Model (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Weighted average fair value at grant date | $26.51 | $20.68 | $21.99 | $20.09 |
Expected term (in years) | '5 years 9 months | '6 years | '5 years 9 months 29 days | '6 years |
Expected volatility | 26.20% | 27.52% | 27.05% | 27.90% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk free interest rate | 1.67% | 0.79% | 1.00% | 1.06% |
STOCK_BASED_COMPENSATION_Stock
STOCK BASED COMPENSATION - Stock Option Activity (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Number of Options | ' |
Outstanding at beginning of period | 5,543,664 |
Granted | 1,050,080 |
Canceled or expired | -705,247 |
Outstanding at September 30, 2013 | -107,933 |
Outstanding at end of period | 5,780,564 |
Exercisable at end of period | 2,919,271 |
Vested and expected to vest in the future at end of period | 5,024,369 |
Weighted Average Exercise Price per Share | ' |
Outstanding at beginning of period | $61.69 |
Granted | $96.94 |
Exercised | $48.68 |
Canceled or expired | $75.19 |
Outstanding at September 30, 2013 | $69.43 |
Exercisable at end of period | $56.35 |
Vested and expected to vest in the future at end of period | $66.71 |
Weighted Average Remaining Contractual Life (in years) | ' |
Outstanding at end of period | '6 years 8 months 27 days |
Exercisable at end of period | '5 years 4 months 28 days |
Vested and expected to vest in the future at end of period | '6 years 5 months 23 days |
Aggregate Intrinsic Value | ' |
Outstanding at end of period | $265,744,014 |
Exercisable at end of period | 172,389,576 |
Vested and expected to vest in the future at end of period | $244,644,342 |
STOCK_BASED_COMPENSATION_Intri
STOCK BASED COMPENSATION - Intrinsic Value of Options Exercised (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Total exercise intrinsic value of options exercised | $12,809 | $28,558 | $40,537 | $68,582 |
STOCK_BASED_COMPENSATION_Restr
STOCK BASED COMPENSATION - Restricted Stock Units Activity (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | |
Number of Units | ' | ' |
Outstanding at beginning of period | 68,202 | ' |
Granted | 17,800 | ' |
Released | -12,750 | ' |
Forfeited | -907 | ' |
Outstanding at end of period | 72,345 | ' |
Exercisable at end of period | 0 | ' |
Weighted Average Remaining Contractual Life (in years) | ' | ' |
Outstanding at end of period | '2 years 10 months 24 days | ' |
Exercisable at end of period | '0 years | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding at end of period | ' | $8,348,613 |
Exercisable at end of period | $0 | ' |
STOCK_BASED_COMPENSATION_Addit
STOCK BASED COMPENSATION - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Ratio of share reserve related to RSUs granted | ' | ' | 2 | ' |
Minimum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock units, vesting period | ' | ' | '3 years | ' |
Maximum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock units, vesting period | ' | ' | '5 years | ' |
Repurchase_of_Shares_of_Common
Repurchase of Shares of Common Stock (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Shares Repurchased and Canceled | 421,060 | 540,390 | 74,820 | 43,500 | 0 | 38,552 | 1,036,270 | 82,052 | ' |
Amount Paid for Repurchases (000’s) | $48,356 | $59,015 | $7,160 | $3,913 | $0 | $2,945 | $114,531 | $6,858 | $48,028 |
Average Price Paid per Share | $114.84 | $109.21 | $95.70 | $89.97 | $0 | $76.38 | $110.52 | $83.58 | ' |
EARNINGS_PER_COMMON_SHARE_Comp
EARNINGS PER COMMON SHARE - Computation of Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ' | ' | ' | ' |
Numerator for basic earnings per share Net income attributable to Stericycle, Inc. | $80,547 | $65,477 | $233,208 | $197,927 |
Denominator: | ' | ' | ' | ' |
Denominator for basic earnings per share weighted average shares | 85,849,656 | 85,748,998 | 86,021,764 | 85,251,002 |
Effect of diluted securities: | ' | ' | ' | ' |
Employee stock options | 1,551,909 | 1,556,781 | 1,475,512 | 1,660,227 |
Denominator for diluted earnings per share-adjusted weighted average shares and after assumed conversions | 87,401,565 | 87,305,779 | 87,497,276 | 86,911,229 |
Earnings per share – Basic (in dollars per share) | $0.94 | $0.76 | $2.71 | $2.32 |
Earnings per share – Diluted (in dollars per share) | $0.92 | $0.75 | $2.67 | $2.28 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | $2,065,103 | $1,913,703 |
Goodwill acquired during year | 148,880 | 177,076 |
Goodwill allocation adjustments | 4,602 | -29,920 |
Sale of business | ' | -1,178 |
Changes due to currency fluctuation | -10,740 | 5,422 |
Ending Balance | 2,207,845 | 2,065,103 |
United States | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 1,616,286 | 1,506,416 |
Goodwill acquired during year | 58,260 | 114,931 |
Goodwill allocation adjustments | 4,515 | -5,061 |
Sale of business | ' | 0 |
Changes due to currency fluctuation | 0 | 0 |
Ending Balance | 1,679,061 | 1,616,286 |
International | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning Balance | 448,817 | 407,287 |
Goodwill acquired during year | 90,620 | 62,145 |
Goodwill allocation adjustments | 87 | -24,859 |
Sale of business | ' | -1,178 |
Changes due to currency fluctuation | -10,740 | 5,422 |
Ending Balance | $528,784 | $448,817 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Values of Intangible Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Intangible Assets by Major Class [Line Items] | ' | ' |
Gross Carrying Amount | $802,991 | $731,686 |
Accumulated Amortization | 82,180 | 64,215 |
Net Value | 720,811 | 667,471 |
Amortizable intangibles | Covenants not-to-compete | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Gross Carrying Amount | 10,189 | 10,993 |
Accumulated Amortization | 5,945 | 5,843 |
Net Value | 4,244 | 5,150 |
Amortizable intangibles | Customer relationships | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Gross Carrying Amount | 664,295 | 602,095 |
Accumulated Amortization | 74,893 | 57,236 |
Net Value | 589,402 | 544,859 |
Amortizable intangibles | Tradenames | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Gross Carrying Amount | 5,058 | 4,922 |
Accumulated Amortization | 941 | 712 |
Net Value | 4,117 | 4,210 |
Amortizable intangibles | License agreements | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Gross Carrying Amount | 611 | 720 |
Accumulated Amortization | 390 | 420 |
Net Value | 221 | 300 |
Amortizable intangibles | Other Intangible Assets | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Gross Carrying Amount | 89 | 89 |
Accumulated Amortization | 11 | 4 |
Net Value | 78 | 85 |
Indefinite lived intangibles | Operating permits | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Gross Carrying Amount | 116,949 | 112,867 |
Net Value | 116,949 | 112,867 |
Indefinite lived intangibles | Tradenames | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' |
Gross Carrying Amount | 5,800 | 0 |
Net Value | $5,800 | $0 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expense (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
2013 | $26,483 |
2014 | 28,295 |
2015 | 27,964 |
2016 | 27,837 |
2017 | $27,593 |
GOODWILL_AND_OTHER_INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 |
Segment | Covenants not-to-compete | Covenants not-to-compete | Covenants not-to-compete | Customer relationships | Customer relationships | Customer relationships | Tradenames | Tradenames | Tradenames | License agreements | License agreements | Market Approach Goodwill Impairment Test [Member] | Income Approach Goodwill Impairment Test [Member] | ||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | |||||||||||
Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of geographical reporting segments | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Difference Between Fair Value And Carrying Value Of Asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% |
Finite lived intangible assets, useful life | ' | ' | ' | ' | ' | '3 years | '14 years | ' | '14 years | '40 years | ' | '10 years | '40 years | ' | '5 years | ' | ' |
Finite lived intangible assets, weighted average remaining useful life | ' | ' | ' | ' | '4 years 1 month 2 days | ' | ' | '25 years 11 months 5 days | ' | ' | '15 years 8 months | ' | ' | '2 years 1 month 13 days | ' | ' | ' |
Aggregate amortization expense | $6,709 | $5,561 | $19,884 | $15,675 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEBT_Schedule_of_LongTerm_Debt
DEBT - Schedule of Long-Term Debt (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Total debt | $1,403,169,000 | $1,356,084,000 |
Less: current portion of total debt | 107,577,000 | 87,781,000 |
Long-term portion of total debt | 1,295,592,000 | 1,268,303,000 |
Obligations under capital leases | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 6,975,000 | 5,234,000 |
$1 billion senior credit facility weighted average rate 2.02%, due in 2016 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 230,882,000 | 225,931,000 |
$100 million private placement notes 5.64%, due in 2015 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 100,000,000 | 100,000,000 |
$175 million private placement notes 3.89%, due in 2017 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 175,000,000 | 175,000,000 |
$125 million private placement notes 2.68%, due in 2019 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 125,000,000 | 125,000,000 |
$225 million private placement notes 4.47%, due in 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 225,000,000 | 225,000,000 |
$125 million private placement notes 3.26%, due in 2022 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 125,000,000 | 125,000,000 |
Acquisition notes weighted average rate of 2.22% and weighted average maturity of 3.5 years | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 280,818,000 | 235,856,000 |
Foreign bank debt weighted average rate 5.21% and weighted average maturity of 1.4 years | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | $134,494,000 | $139,063,000 |
Schedule_of_LongTerm_Debt_Pare
- Schedule of Long-Term Debt (Parenthetical) (Detail) (USD $) | 3 Months Ended |
Sep. 30, 2013 | |
$1 billion senior credit facility weighted average rate 2.02%, due in 2016 | ' |
Debt Instrument [Line Items] | ' |
Maximum borrowing capacity of line of credit facility | 1,000,000,000 |
Interest rate percentage | 2.02% |
$100 million private placement notes 5.64%, due in 2015 | ' |
Debt Instrument [Line Items] | ' |
Long-term debt, face amount | 100,000,000 |
Interest rate percentage | 5.64% |
$175 million private placement notes 3.89%, due in 2017 | ' |
Debt Instrument [Line Items] | ' |
Long-term debt, face amount | 175,000,000 |
Interest rate percentage | 3.89% |
$125 million private placement notes 2.68%, due in 2019 | ' |
Debt Instrument [Line Items] | ' |
Long-term debt, face amount | 125,000,000 |
Interest rate percentage | 2.68% |
$225 million private placement notes 4.47%, due in 2020 | ' |
Debt Instrument [Line Items] | ' |
Long-term debt, face amount | 225,000,000 |
Interest rate percentage | 4.47% |
$125 million private placement notes 3.26%, due in 2022 | ' |
Debt Instrument [Line Items] | ' |
Long-term debt, face amount | 125,000,000 |
Interest rate percentage | 3.26% |
Acquisition notes weighted average rate of 2.22% and weighted average maturity of 3.5 years | ' |
Debt Instrument [Line Items] | ' |
Interest rate percentage | 2.22% |
Debt, maturity period | '3 years 6 months |
Foreign bank debt weighted average rate 5.21% and weighted average maturity of 1.4 years | ' |
Debt Instrument [Line Items] | ' |
Interest rate percentage | 5.21% |
Debt, maturity period | '1 year 4 months 24 days |
DEBT_Additional_Information_De
DEBT - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Guaranteed loan, loan balance | $5 | ' |
$1 billion senior credit facility weighted average rate 2.02%, due in 2016 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior letters of credit facility, committed to outstanding letters of credit | 147.3 | 157.6 |
Senior letters of credit facility, unused portion | 621.8 | 616.5 |
Other Assets [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Loan receivable from customer | $15.50 | ' |
GEOGRAPHIC_INFORMATION_Detaile
GEOGRAPHIC INFORMATION - Detailed Information for Reporting Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | $534,579 | $480,484 | $1,574,908 | $1,409,511 | ' |
Income before income taxes | 120,738 | 101,128 | 358,005 | 309,716 | ' |
Income taxes | 39,906 | 35,382 | 123,508 | 110,283 | ' |
Net Income | 80,832 | 65,746 | 234,497 | 199,433 | 269,941 |
Less: Net Income Attributable to Noncontrolling Interests | 285 | 269 | 1,289 | 1,506 | ' |
Net Income Attributable to Stericycle, Inc. | 80,547 | 65,477 | 233,208 | 197,927 | ' |
United States | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | 378,120 | 348,206 | 1,111,970 | 1,015,254 | ' |
Net interest expense | 10,786 | 10,221 | 32,283 | 30,807 | ' |
Income before income taxes | 103,925 | 92,590 | 299,281 | 269,046 | ' |
Income taxes | 34,687 | 31,566 | 109,499 | 98,450 | ' |
Net Income Attributable to Stericycle, Inc. | 69,238 | 61,024 | 189,782 | 170,596 | ' |
Depreciation and amortization | 12,041 | 11,429 | 37,303 | 32,932 | ' |
United States | Regulated Waste Management Service [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | 353,049 | 319,465 | 1,040,636 | 921,772 | ' |
United States | Regulated Recall And Returns Management Services [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | 25,071 | 28,741 | 71,334 | 93,482 | ' |
International | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net interest expense | 2,530 | 2,710 | 7,325 | 7,457 | ' |
Income before income taxes | 16,813 | 8,538 | 58,724 | 40,670 | ' |
Income taxes | 5,219 | 3,816 | 14,009 | 11,833 | ' |
Net Income | 11,594 | 4,722 | 44,715 | 28,837 | ' |
Less: Net Income Attributable to Noncontrolling Interests | 285 | 269 | 1,289 | 1,506 | ' |
Net Income Attributable to Stericycle, Inc. | 11,309 | 4,453 | 43,426 | 27,331 | ' |
Depreciation and amortization | 9,809 | 8,016 | 27,810 | 22,257 | ' |
International | Regulated Waste Management Service [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenues | $156,459 | $132,278 | $462,938 | $394,257 | ' |
GEOGRAPHIC_INFORMATION_Additio
GEOGRAPHIC INFORMATION - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of geographical reporting segments | 2 |