Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 16, 2015 | Jun. 30, 2014 | |
Document Documentand Entity Information [Abstract] | |||
Entity Registrant Name | STERICYCLE INC | ||
Entity Central Index Key | 861878 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SRCL | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 84,940,511 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $10,038,938,856 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $22,236 | $67,167 |
Short-term investments | 380 | 413 |
Accounts receivable, less allowance for doubtful accounts of $19,083 in 2014 and $19,134 in 2013 | 465,473 | 388,996 |
Deferred income taxes | 28,322 | 18,031 |
Prepaid expenses | 30,632 | 28,379 |
Other current assets | 33,173 | 37,279 |
Total Current Assets | 580,216 | 540,265 |
Property, Plant and Equipment, less accumulated depreciation of $364,124 in 2014 and $323,031 in 2013 | 460,408 | 358,967 |
Goodwill | 2,418,832 | 2,231,582 |
Intangible assets, less accumulated amortization of $114,922 in 2014 and $88,098 in 2013 | 909,645 | 720,035 |
Other assets | 32,621 | 37,124 |
Total Assets | 4,401,722 | 3,887,973 |
Current liabilities: | ||
Current portion of long-term debt | 131,969 | 150,380 |
Accounts payable | 114,596 | 89,146 |
Accrued liabilities | 131,743 | 107,445 |
Deferred revenues | 21,624 | 18,826 |
Other current liabilities | 61,599 | 50,387 |
Total Current Liabilities | 461,531 | 416,184 |
Long-term debt, net of current portion | 1,527,246 | 1,280,663 |
Deferred income taxes | 431,643 | 396,119 |
Other liabilities | 64,117 | 27,469 |
Equity: | ||
Common stock (par value $.01 per share, 120,000,000 shares authorized, 84,883,517 issued and outstanding in 2014 and 85,500,037 issued and outstanding in 2013) | 849 | 855 |
Additional paid-in capital | 289,211 | 195,110 |
Accumulated other comprehensive loss | -138,419 | -56,468 |
Retained earnings | 1,743,371 | 1,610,964 |
Total Stericycle, Inc.’s Equity | 1,895,012 | 1,750,461 |
Noncontrolling interest | 22,173 | 17,077 |
Total Equity | 1,917,185 | 1,767,538 |
Total Liabilities and Equity | $4,401,722 | $3,887,973 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $19,083 | $19,134 |
Accumulated depreciation | 364,124 | 323,031 |
Intangible assets, accumulated amortization | $114,922 | $88,098 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, issued | 84,883,517 | 85,500,037 |
Common stock, outstanding | 84,883,517 | 85,500,037 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenues | $2,555,601 | $2,142,807 | $1,913,149 |
Costs and Expenses: | |||
Cost of revenues (exclusive of depreciation shown below) | 1,404,712 | 1,128,170 | 1,011,213 |
Depreciation - cost of revenues | 56,478 | 50,003 | 44,631 |
Selling, general and administrative expenses (exclusive of depreciation and amortization shown below) | 489,937 | 390,610 | 356,817 |
Depreciation – selling, general and administrative expenses | 15,446 | 11,338 | 9,598 |
Amortization | 32,692 | 27,067 | 22,054 |
Total Costs and Expenses | 1,999,265 | 1,607,188 | 1,444,313 |
Income from Operations | 556,336 | 535,619 | 468,836 |
Other Income (Expense): | |||
Interest income | 120 | 294 | 404 |
Interest expense | -66,142 | -55,243 | -51,674 |
Other expense, net | -2,746 | -2,924 | -369 |
Total Other Expense | -68,768 | -57,873 | -51,639 |
Income Before Income Taxes | 487,568 | 477,746 | 417,197 |
Income Tax Expense | 159,422 | 164,662 | 147,256 |
Net Income | 328,146 | 313,084 | 269,941 |
Less: Net Income Attributable to Noncontrolling Interests | 1,690 | 1,712 | 1,945 |
Net Income Attributable to Stericycle, Inc. | $326,456 | $311,372 | $267,996 |
Earnings Per Common Share Attributable to Stericycle, Inc. Common Shareholders: | |||
Basic | $3.84 | $3.62 | $3.14 |
Diluted | $3.79 | $3.56 | $3.08 |
Weighted Average Number of Common Shares Outstanding: | |||
Basic | 84,932,792 | 85,902,550 | 85,401,365 |
Diluted | 86,233,612 | 87,391,988 | 87,018,473 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $328,146 | $313,084 | $269,941 |
Other Comprehensive Income/ (Loss): | |||
Foreign currency translation adjustments | -82,871 | -19,160 | 6,801 |
Amortization of cash flow hedge into income, net of tax ($209, $200 and $216) for the years ended December 31, 2014, 2013 and 2012, respectively) | 339 | 314 | 339 |
Change in fair value of cash flow hedge, net of tax ($813, $0 and $193 for the years ended December 31, 2014, 2013 and 2012, respectively) | -2,069 | 0 | 289 |
Total Other Comprehensive Income/ (Loss) | -84,601 | -18,846 | 7,429 |
Comprehensive Income | 243,545 | 294,238 | 277,370 |
Less: Comprehensive Income/ (Loss) Attributable to Noncontrolling Interests | -960 | 270 | 2,454 |
Comprehensive Income Attributable to Stericycle, Inc. | $244,505 | $293,968 | $274,916 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Amortization of cash flow hedge into income, tax | $209 | $200 | $216 |
Change in fair value of cash flow hedge, tax | $813 | $0 | $193 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES: | |||
Net income | $328,146 | $313,084 | $269,941 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock compensation expense | 17,773 | 17,457 | 16,339 |
Excess tax benefit of stock options exercised | -17,906 | -17,153 | -30,161 |
Depreciation | 71,924 | 61,341 | 54,229 |
Amortization | 32,692 | 27,067 | 22,054 |
Deferred income taxes | 16,550 | 30,930 | 22,678 |
Loss on sale of business | 0 | 0 | 4,867 |
Change in fair value of contingent consideration | -1,452 | -2,278 | 752 |
Other, net | 10,384 | 3,381 | 1,677 |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | |||
Accounts receivable | -34,116 | -54,767 | -4,329 |
Accounts payable | -5,712 | 7 | 406 |
Accrued liabilities | 21,279 | 4,547 | 24,537 |
Deferred revenues | 1,017 | -1,319 | 931 |
Other assets and liabilities | 7,921 | 23,010 | 6,863 |
Net cash provided by operating activities | 448,500 | 405,307 | 390,784 |
INVESTING ACTIVITIES: | |||
Payments for acquisitions, net of cash acquired | -374,321 | -161,936 | -224,367 |
(Purchases of)/ proceeds from investments | -1,957 | 73 | -89 |
Proceeds from sale of business and other assets | 0 | 0 | 764 |
Capital expenditures | -86,496 | -73,109 | -65,236 |
Net cash used in investing activities | -462,774 | -234,972 | -288,928 |
FINANCING ACTIVITIES: | |||
Repayments of long-term debt and other obligations | -101,231 | -88,507 | -102,932 |
Borrowings on foreign bank debt | 205,086 | 218,968 | 98,620 |
Repayments on foreign bank debt | -193,284 | -201,967 | -69,454 |
Borrowings on senior credit facility | 1,413,026 | 1,029,718 | 863,286 |
Repayments on senior credit facility | -1,216,031 | -984,979 | -1,167,595 |
Proceeds from private placement of long-term note | 0 | 0 | 250,000 |
Payments of deferred financing costs | -2,280 | 0 | -956 |
Payments on capital lease obligations | -5,826 | -4,024 | -3,192 |
Purchases and cancellations of treasury stock | -194,066 | -163,700 | -48,028 |
Proceeds from issuance of common stock | 51,852 | 42,345 | 64,461 |
Excess tax benefit of stock options exercised | 17,906 | 17,153 | 30,161 |
Payments to noncontrolling interests | -5,201 | -1,026 | -5,897 |
Net cash used in financing activities | -30,049 | -136,019 | -91,526 |
Effect of exchange rate changes on cash and cash equivalents | -608 | -1,809 | 1,819 |
Net (decrease)/ increase in cash and cash equivalents | -44,931 | 32,507 | 12,149 |
Cash and cash equivalents at beginning of period | 67,167 | 34,660 | 22,511 |
Cash and cash equivalents at end of period | 22,236 | 67,167 | 34,660 |
NON-CASH ACTIVITIES: | |||
Issuances of obligations for acquisitions | 145,938 | 100,101 | 97,541 |
Issuances of obligations for noncontrolling interest | $0 | $6,119 | $8,197 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest [Member] |
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 | 85,988,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 313,084 | 311,372 | 1,712 | |||
Currency translation adjustment | -19,160 | -17,718 | -1,442 | |||
Change in qualifying cash flow hedge, net of tax | 314 | 314 | ||||
Issuance of common stock for exercise of options, restricted stock units and employee stock purchases (in shares) | 973,000 | |||||
Issuance of common stock for exercise of options, restricted stock units and employee stock purchases | 48,001 | 10 | 47,991 | |||
Purchase/ cancellation of treasury stock (in shares) | -1,461,000 | |||||
Purchase/ cancellation of treasury stock | -163,700 | -15 | 0 | -163,685 | ||
Stock compensation expense | 17,457 | 17,457 | ||||
Excess tax benefit of stock options exercised | 17,153 | 17,153 | ||||
Noncontrolling interests attributable to acquisitions | 4,211 | 4,211 | ||||
Reduction to noncontrolling interests due to additional ownership | -7,137 | -4,211 | -2,926 | |||
Payments to noncontrolling interests | -8 | -8 | ||||
Ending Balance at Dec. 31, 2013 | 1,767,538 | 855 | 195,110 | 1,610,964 | -56,468 | 17,077 |
Ending Balance (in shares) at Dec. 31, 2013 | 85,500,037 | 85,500,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 328,146 | 326,456 | 1,690 | |||
Currency translation adjustment | -82,871 | -80,221 | -2,650 | |||
Change in qualifying cash flow hedge, net of tax | -1,730 | -1,730 | ||||
Issuance of common stock for exercise of options, restricted stock units and employee stock purchases (in shares) | 1,061,000 | |||||
Issuance of common stock for exercise of options, restricted stock units and employee stock purchases | 58,562 | 11 | 58,551 | |||
Purchase/ cancellation of treasury stock (in shares) | -1,677,000 | |||||
Purchase/ cancellation of treasury stock | -194,066 | -17 | 0 | -194,049 | ||
Stock compensation expense | 17,773 | 17,773 | ||||
Excess tax benefit of stock options exercised | 17,906 | 17,906 | ||||
Noncontrolling interests attributable to acquisitions | 6,781 | 6,781 | ||||
Reduction to noncontrolling interests due to additional ownership | -854 | -129 | -725 | |||
Ending Balance at Dec. 31, 2014 | $1,917,185 | $849 | $289,211 | $1,743,371 | ($138,419) | $22,173 |
Ending Balance (in shares) at Dec. 31, 2014 | 84,883,517 | 84,884,000 |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS |
We were incorporated in 1989 and presently serve a diverse customer base of more than 600,000 customers throughout the United States, Argentina, Brazil, Canada, Chile, Ireland, Japan, Mexico, Portugal, Romania, Republic of Korea, Spain, and the United Kingdom. | |
We lease office space for our corporate offices in Lake Forest, Illinois. Domestically, we own or lease 64 processing facilities, the majority of which use autoclave waste processing technology. All of our processing facilities also serve as collection sites. We own or lease 137 additional transfer sites, 19 additional sales/administrative sites, and 51 other service facilities. Internationally, we own or lease 117 processing facilities, the majority of which use autoclave waste processing technology. We also own or lease 77 additional transfer sites, 45 additional sales/administrative sites, 46 other service facilities, and 2 landfills. | |
We are in the business of providing regulated and compliance solutions to healthcare and commercial businesses. This includes the collection and processing of specialized waste for disposal, and a variety of training, consulting, recall/return, communication, and compliance services. | |
The regulated solutions we provide include: medical waste disposal, hazardous waste management, our Steri-Safe® medical waste and compliance program, our Clinical Services program, our Sharps Management Service featuring Bio Systems® reusable sharps containers, pharmaceutical waste disposal, and medical safety products. Our compliance solutions include: training, consulting, inbound/outbound communications, data reporting, and other regulatory compliance services. In addition to our regulated and compliance solutions, we offer regulated recall and returns management solutions which encompass a number of services for a variety of businesses, but consist primarily of managing the recall, withdrawal, or return of expired or recalled products and pharmaceuticals. | |
We have 9,969 employees in the United States, of which 456 are covered by collective bargaining agreements. Internationally, we have 8,687 employees, of which approximately 2,209 are covered by collective bargaining agreements, primarily in Latin America. | |
The accompanying consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") in conformity with accounting principles generally accepted in the United States. The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. | |
In our opinion, the consolidated financial statements included herein contain all adjustments necessary to present fairly our financial position as of December 31, 2014 and 2013 and the results of our operations, our cash flows, and our statement of changes in equity for the three years ended December 31, 2014, 2013 and 2012. Such adjustments are of a normal recurring nature. We have evaluated subsequent events through the date of filing this Annual Report on Form 10-K. | |
Certain amounts in previously issued financial statements have been reclassified to conform to the current period presentation. At December 31, 2013, the Company recorded an immaterial correction of an error to reclassify $5.2 million of book overdrafts from cash and cash equivalents to other current liabilities on the Consolidated Balance Sheet. This adjustment had no impact on previously reported Stericycle, Inc.'s equity, net income, or earnings per share. | |
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. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Principles of Consolidation: | |||
The consolidated financial statements include the accounts of Stericycle, Inc. and its subsidiaries. | |||
Revenue Recognition: | |||
Revenues for our regulated waste management services, other than our compliances services such as Steri-Safe, are recognized at the time of waste collection. Our compliance service revenues are recognized evenly over the contractual service period. Payments received in advance are deferred and recognized as services are provided. Revenues from hazardous waste services are recorded at the time waste is received at our processing facility. Revenues from regulated recall and returns management services and communication solutions are recorded at the time services are performed. Revenues from product sales are recognized at the time the goods are shipped to the ordering customer. Charges related to international value added tax ("VAT") and other similar pass through taxes are not included as revenue. | |||
Cash Equivalents and Short-Term Investments: | |||
We consider all highly liquid investments with a maturity of less than three months when purchased to be cash equivalents. Short-term investments consist of certificates of deposit which mature in less than one year. | |||
Property, Plant and Equipment: | |||
Property, plant and equipment are stated at cost. Depreciation and amortization, which include the depreciation of assets recorded under capital leases, are computed using the straight-line method over the estimated useful lives of the assets as follows: | |||
Building and improvements | 5 to 50 years | ||
Machinery and equipment | 3 to 30 years | ||
Containers | 2 to 20 years | ||
Vehicles | 2 to 7 years | ||
Office equipment and furniture | 2 to 15 years | ||
Software | 2 to 7 years | ||
Our containers have a weighted average remaining useful life of 13.1 years. | |||
Acquisition Accounting: | |||
Acquisition accounting requires us to recognize assets and liabilities at their fair value. The process of determining fair value requires time to complete therefore we will make some estimates at the time of acquisition. These estimates are primarily for amortizable intangibles and, if appropriate, an associated deferred tax liability. These estimates are based on historical experience and allow us to recognize amortization expense until the final valuation is complete. | |||
Goodwill and Identifiable Intangibles: | |||
Goodwill and identifiable indefinite lived intangible assets are not amortized, but are subject to an annual impairment test (see Note 11 - Goodwill and Other Intangible Assets for more information about goodwill and the annual impairment test). Our finite-lived intangible assets are amortized over their useful lives. We have determined that our customer relationships have useful lives from 10 to 40 years based upon the type of customer, with a weighted average remaining useful life of 23.8 years. We have covenants not-to-compete intangibles with useful lives from 3 to 14 years, with a weighted average remaining useful life of 4.7 years. We have tradename intangibles with useful lives from 10 to 40 years, with a weighted average remaining useful life of 15.8 years. We have technology with useful life of 5 years, with a weighted average remaining useful life of 1.0 years. We have determined that our permits have indefinite lives due to our ability to renew these permits with minimal additional cost, and therefore they are not amortized. We also have a tradename that we have determined has an indefinite life. | |||
Our indefinite lived intangible assets are tested for impairment annually at December 31, or more frequently, if circumstances indicate that they may be impaired. We use a qualitative assessment, as provided for under the FASB Accounting Standards Codification Topic 350, Intangibles - Goodwill and Other, to determine if is is more likely then not that the asset is impaired. If there is an indication of impairment, we test the recoverability of the asset using either a discounted income or cost savings model to calculate fair value. The calculated fair value is based upon, among other things, certain assumptions about expected future operating performance, internal and external processing costs, and an appropriate discount rate determined by management. Our estimates of discounted income may differ from actual income due to, among other things, inaccuracies in economic estimates (see Note 11 - Goodwill and Other Intangible Assets for more information about indefinite lived intangible assets). | |||
Valuation of Intangibles: | |||
Valuation of our intangible assets other than goodwill is derived using a discounted income and cost savings approach. Financial information such as revenues, costs, assets and liabilities, and other assumptions related to the intangible asset are input into a standard valuation model to determine a stream of income attributable to that intangible. The income stream is then discounted to the present to arrive at a valuation. We perform annual impairment tests on our indefinite lived intangible assets. | |||
We have determined that our customer relationships have lives between 10 and 40 year based on the specific type of relationship. The valuation of our contractual customer relationships was derived using a discounted income approach valuation model. These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may be less than its undiscounted estimated future cash flows (see Note 11 - Goodwill and Other Intangible Assets for more information about our intangible assets other than goodwill). | |||
Share Repurchases: | |||
Purchase price over par value for share repurchases are allocated to retained earnings. | |||
Income Taxes: | |||
Deferred income tax assets and liabilities are determined based on the differences between the financial statement and income tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Interest and penalties accrued related to unrecognized tax benefits are recognized as a component of income tax expense. | |||
Accounts Receivable: | |||
Accounts receivable consist of amounts due to us from our normal business activities and are carried at their estimated collectible amounts. Our accounts receivable balance includes amounts related to VAT and similar international pass-through taxes. We do not require collateral as part of our standard trade credit policy. Accounts receivable balances are determined to be past due when the amount is overdue based on the contractual terms with the customer. We maintain an allowance for doubtful accounts to reflect the expected uncollectibility of accounts receivable based on past collection history and specific risks identified among uncollected accounts. Accounts receivable are written off against the allowance for doubtful accounts when we have determined that the receivable will not be collected and/or when the account has been referred to a third party collection agency. No single customer accounts for more than approximately 1% of our accounts receivable. Bad debt expense was $9.9 million, $4.8 million and $4.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||
Environmental Remediation Liabilities: | |||
We record a liability for environmental remediation when such liability becomes probable and the costs or damages can be reasonably estimated. We accrue environmental remediation costs, on an undiscounted basis, associated with identified sites where an assessment has indicated that cleanup costs are probable and can be reasonably estimated, but the timing of such payments is not fixed and determinable. Such accruals are based on currently available information, estimated timing of remedial actions, existing technology, and enacted laws and regulations. | |||
Financial Instruments: | |||
Our financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable and payable and long-term debt. At December 31, 2014, the fair value of the Company’s debt obligations was estimated at $1.67 billion, compared to a carrying amount of $1.66 billion. This fair value was estimated using market interest rates for comparable instruments. The Company has no current plans to retire a significant amount of its debt prior to maturity. Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of accounts receivable. Credit risk on trade receivables is minimized as a result of the large size of our customer base. No single customer represents greater than approximately 1% of total accounts receivable. We perform ongoing credit evaluation of our customers and maintain allowances for potential credit losses. For any contracts in loss positions, losses are recorded when probable and estimable. These losses, when incurred, have been within the range of our expectations. | |||
Use of Estimates: | |||
The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Some areas where we make estimates include allowance for doubtful accounts, credit memo reserve, accrued employee health and welfare benefits, stock compensation expense, income tax liabilities, accrued auto and workers’ compensation insurance claims, and intangible asset valuations. Such estimates are based on historical trends and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from our estimates. | |||
Future estimated expenses may fluctuate depending on changes in foreign currency rates. The estimates for payments due on long-term debt, lease payments under capital leases, accrued liabilities, contingent consideration liabilities, intangible assets amortization expense, and rental payments are based upon foreign exchange rates at December 31, 2014. | |||
Stock-Based Compensation: | |||
We recognize compensation expense for all stock-based awards made to our employees and directors. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized over the vesting period. Determining the fair value of stock-based awards at the grant date requires considerable judgment, including estimating expected volatility of our stock, expected term of the award, and the risk-free interest rate. Our stock’s expected volatility is based upon historical experience. The expected term of options granted is based on historical experience. The risk-free interest rate assumption is based upon the U.S. Treasury yield rates for a comparable period. If factors change and we employ different assumptions, stock-based compensation expense for new grants may differ significantly from what we have recorded in the past. | |||
Foreign Currency Translation: | |||
Assets and liabilities of foreign affiliates that use the local currency as their functional currency are translated at the exchange rate on the last day of the accounting period, and income statement accounts are translated at the average rates during the period. Related translation adjustments are reported as a component of accumulated other comprehensive loss in Stericycle, Inc.'s equity. | |||
New Accounting Standards: | |||
Accounting Standards Recently Adopted | |||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |||
On January 1, 2014, we adopted 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. We are applying this guidance on a prospective basis. The implementation of this guidance did not affect our results of operations or financial liquidity. | |||
Accounting Standards Issued But Not Yet Adopted | |||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |||
In April 2014, the Financial Accounting Standards Board ("FASB") issued guidance that changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or is classified as held for sale and "represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results." For disposals of individually significant components that do not qualify as discontinued operations, an entity must disclose pre-tax earnings of the disposed component. For public business entities, this guidance is effective prospectively for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company has no plans to dispose of a component of our entity and therefore does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations. | |||
Revenue From Contracts With Customers | |||
In May 2014, the FASB issued guidance to provide a single, comprehensive revenue recognition model for all contracts with customers. The revenue guidance contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016 for public entities, with no early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on its internal processes, operating results, and financial reporting. The impact is currently not known or reasonably estimable. | |||
Accounting for Share-Based Payment When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period | |||
In June 2014, the FASB issued guidance that applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. It requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and follows existing accounting guidance for the treatment of performance conditions. The standard will be effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The Company does not have any share-based payments with a performance target and therefore does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations. |
ACQUISITIONS_AND_DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Combinations [Abstract] | ||||||||||||
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES | |||||||||||
The following table summarizes the locations of our acquisitions for the years ended December 31, twelve months ended December 31, 2014, 2013 and 2012: | ||||||||||||
Acquisition Locations | 2014 | 2013 | 2012 | |||||||||
United States | 17 | 13 | 17 | |||||||||
Argentina | 2 | 3 | 1 | |||||||||
Brazil | 3 | 2 | 1 | |||||||||
Canada | 2 | 3 | — | |||||||||
Chile | 3 | 1 | 3 | |||||||||
Japan | 2 | 3 | 1 | |||||||||
Mexico | — | 1 | 2 | |||||||||
Portugal | 5 | 2 | 1 | |||||||||
Romania | 3 | 6 | 2 | |||||||||
Republic of Korea | 1 | — | — | |||||||||
Spain | 3 | 3 | 8 | |||||||||
United Kingdom | 3 | 12 | 5 | |||||||||
Total | 44 | 49 | 41 | |||||||||
During 2014, we completed 44 acquisitions, of which 17 were domestic and 27 were international businesses. Domestically, we acquired 100% of the stock of two regulated waste businesses, selected assets of eleven regulated waste businesses, three communication services business, and one recall and returns business. | ||||||||||||
Internationally, in Argentina, we acquired 100% of the stock of two regulated waste businesses. In Brazil, we acquired 100% of the stock of two regulated waste business and selected assets of one regulated waste business. In Canada, we acquired 100% of the stock of two communication solution businesses. In Chile, we acquired 100% of the stock of two regulated waste businesses, and 90% of the stock of another. In Japan, we acquired 100% of the stock of two regulated waste businesses. In Portugal, we acquired 100% of the stock of five regulated waste business. In Romania, we acquired selected assets of two regulated waste businesses and 100% of the stock of another. In Republic of Korea, which represents a new market for us, we acquired 75.5% of the stock of one regulated waste business. In Spain, we acquired 100% of the stock of one regulated waste business and selected assets of two regulated waste businesses. In the United Kingdom, we acquired 100% of the stock of two regulated waste businesses and selected assets of another. | ||||||||||||
We also increased our majority share in a previous acquisition in Japan to 100%. | ||||||||||||
The following table summarizes the aggregate purchase price paid for acquisitions and other adjustments of consideration to be paid for acquisitions during the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
In thousands | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash | $ | 374,321 | $ | 161,936 | $ | 224,367 | ||||||
Promissory notes | 125,229 | 64,581 | 70,670 | |||||||||
Deferred consideration | 3,535 | 31,149 | 17,681 | |||||||||
Contingent consideration | 17,174 | 4,371 | 9,190 | |||||||||
Total purchase price | $ | 520,259 | $ | 262,037 | $ | 321,908 | ||||||
For financial reporting purposes, our acquisitions were accounted for using the acquisition method of accounting. These acquisitions resulted in the 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 twelve months ended December 31, 2014, we recognized a net increase in goodwill of $235.6 million excluding the effect of foreign currency translation (see Note 11 – Goodwill and Other Intangible Assets, in the Notes to the Consolidated Financial Statements). A net increase of $164.9 million was assigned to our United States reportable segment, and a net increase of $70.7 million was assigned to our International reportable segment. Approximately $125 million of the goodwill recognized during the twelve months ended December 31, 2014 will be deductible for income taxes. | ||||||||||||
During the twelve months ended December 31, 2014, we recognized a net increase in intangible assets from acquisitions of $276.8 million, excluding the effect of foreign currency translation. The changes include $117.2 million in the estimated fair value of acquired customer relationships with amortizable lives of 10 to 40 years, $158.1 million in permits with indefinite lives, and $1.2 million in tradename with an amortizable lives of 15 to 20 years, and $0.3 million in other intangibles with an amortizable life of 10 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 years ended December 31, 2014, 2013 and 2012: | ||||||||||||
In thousands | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Fixed assets | $ | 98,916 | $ | 15,582 | $ | 30,426 | ||||||
Intangibles | 276,798 | 92,398 | 150,149 | |||||||||
Goodwill | 235,597 | 179,795 | 147,156 | |||||||||
Accounts receivable | 68,019 | 19,920 | 26,656 | |||||||||
Accounts payable | (37,021 | ) | (8,910 | ) | (7,423 | ) | ||||||
Environmental remediation liabilities | (32,383 | ) | — | — | ||||||||
Net other (liabilities)/ assets | (42,015 | ) | (11,030 | ) | 3,869 | |||||||
Debt | (22,102 | ) | (7,512 | ) | (4,353 | ) | ||||||
Net deferred tax liabilities | (18,769 | ) | (13,995 | ) | (20,186 | ) | ||||||
Noncontrolling interests | (6,781 | ) | (4,211 | ) | (4,386 | ) | ||||||
Total purchase price allocation | $ | 520,259 | $ | 262,037 | $ | 321,908 | ||||||
During the twelve months ended December 31, 2014, 2013 and 2012 the Company incurred $13.3 million, $10.3 million, and $7.9 million, respectively, of acquisition related expenses. These expenses are included with "Selling, general and administrative expenses" ("SG&A") on our Consolidated Statements of Income. | ||||||||||||
Included in the acquisitions discussed above for the quarter ended June 30, 2014 is the acquisition of 100% of the stock of PSC Environmental Services, LLC ("PSC Environmental"), which was consummated on April 22, 2014. Subject to various adjustments, the total consideration for the PSC Environmental acquisition was $284.2 million, of which $248.2 million was paid in cash, $30.0 million was paid by a two-year promissory note, and $6.0 million of the total purchase price represents contingent consideration which is based on Stericycle's expected future utilization of acquired net operating losses. A portion of the cash payment was applied to pay PSC Environmental’s indebtedness as of the closing date. As part of the PSC Environmental acquisition, we assumed $32.4 million in environmental remediation liabilities (see Note 13 - Environmental Remediation Liabilities, in the Notes to the Consolidated Financial Statements). | ||||||||||||
Included in the acquisitions discussed above for the quarter ended September 30, 2014 is the acquisition of 100% of the stock of Shiraishi-Sogyo Co. Ltd. ("Shiraishi"). Consideration for the acquisition of Shiraishi included the effective settlement of pre-existing loans we extended to Shiraishi for $15.7 million and the assumption of Shiraishi's bank debt of $4.7 million. | ||||||||||||
The results of operations of these acquired businesses have been included in the consolidated statements of income from the date of the acquisition. The pro forma revenues for the twelve months ended December 31, 2014 from the aggregate acquisitions during 2014 was approximately $364.5 million, which includes $219.5 million estimated impact to 2014 reported revenues. Our pro forma earnings include estimates for intangible asset amortization expense but does not include estimated synergies as the timing and realizability of synergies is uncertain. The following consolidated pro forma information on the impact of the 2014 acquisitions to our consolidated revenues is based on the assumption that these acquisitions all occurred on January 1, 2013: | ||||||||||||
In thousands | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Revenues | $ | 2,700,614 | $ | 2,507,314 | ||||||||
Net income | 331,330 | 317,609 | ||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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 | |||||||||||||
December 31, 2014 | Inputs | Inputs | Inputs | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 22,236 | $ | 22,236 | $ | — | $ | — | ||||||||
Short-term investments | 380 | 380 | — | — | ||||||||||||
Derivative financial instruments | 515 | — | 515 | — | ||||||||||||
Total assets | $ | 23,131 | $ | 22,616 | $ | 515 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 19,941 | $ | — | $ | — | $ | 19,941 | ||||||||
Derivative financial instruments | $ | 2,408 | $ | — | $ | 2,408 | $ | — | ||||||||
Total liabilities | $ | 22,349 | $ | — | $ | 2,408 | $ | 19,941 | ||||||||
In thousands | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Total as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2013 | Inputs | Inputs | Inputs | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 67,167 | $ | 67,167 | $ | — | $ | — | ||||||||
Short-term investments | 413 | 413 | — | — | ||||||||||||
Total assets | $ | 67,580 | $ | 67,580 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 12,527 | $ | — | $ | — | $ | 12,527 | ||||||||
Total liabilities | $ | 12,527 | $ | — | $ | — | $ | 12,527 | ||||||||
For our derivative financial instruments we use a market approach valuation technique based on observable market transactions of spot and forward rates. | ||||||||||||||||
We recorded a $0.5 million asset related to the fair value of the U.S. dollar-Canadian dollar foreign currency swap which was classified as other assets at December 31, 2014. The objective of the swap is to offset the foreign exchange risk to the U.S. dollar equivalent cash outflows for our Canadian subsidiary. | ||||||||||||||||
We recorded a $2.4 million liability related to the fair value of treasury locks which was classified as current liabilities at December 31, 2014. The purpose was to lock in the treasury rate on the issuance of expected private placement debt and to eliminate interest rate risk. The fair value of the hedge was calculated by taking the present value of the difference between the locked rate and the forward rates at December 31, 2014. The hedge will terminate in April 2015 at which time the settlement amount, net of tax, will be recognized in accumulated other comprehensive income and amortized to net interest expense over the life of the underlying debt. | ||||||||||||||||
We had contingent consideration liabilities recorded using Level 3 inputs in the amount of $19.9 million, of which $7.9 million was classified as current liabilities at December 31, 2014. Contingent consideration liabilities were $12.5 million at December 31, 2013. Contingent consideration represents amounts expected to be paid as part of acquisition consideration only if certain future events occur. These events are usually targets for revenues or earnings related to the business acquired. 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 $23.8 million at December 31, 2014. Contingent consideration liabilities are reassessed each quarter and are reflected in the Consolidated Balance Sheets in current liabilities within "Other current liabilities" and in noncurrent liabilities within "Other liabilities." Changes to contingent consideration are reflected in the table below: | ||||||||||||||||
In thousands | ||||||||||||||||
Contingent consideration at January 1, 2014 | $ | 12,527 | ||||||||||||||
Increases due to acquisitions | 17,174 | |||||||||||||||
Decrease due to change in noncontrolling interests | (4,379 | ) | ||||||||||||||
Decrease due to payments | (2,737 | ) | ||||||||||||||
Changes due to foreign currency fluctuations | (1,192 | ) | ||||||||||||||
Changes in fair value reflected in Selling, general, and administrative expenses | (1,452 | ) | ||||||||||||||
Contingent consideration at December 31, 2014 | $ | 19,941 | ||||||||||||||
Fair Value of Debt: At December 31, 2014, the fair value of the Company’s debt obligations was estimated, using Level 2 inputs, at $1.67 billion compared to a carrying amount of $1.66 billion. At December 31, 2013, the fair value of the Company’s debt obligations was estimated, using Level 2 inputs, at $1.41 billion compared to a carrying amount of $1.43 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 | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
INCOME TAXES | INCOME TAXES | ||||||||||||
The U.S. and International components of income before income taxes consisted of the following for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
In thousands | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 441,029 | $ | 407,315 | $ | 357,076 | |||||||
Foreign | 46,539 | 70,431 | 60,121 | ||||||||||
Total income before income taxes | $ | 487,568 | $ | 477,746 | $ | 417,197 | |||||||
Significant components of our income tax expense for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||
In thousands | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current | |||||||||||||
United States - federal | $ | 118,217 | $ | 103,751 | $ | 95,864 | |||||||
United States - state and local | 13,023 | 11,683 | 14,034 | ||||||||||
Foreign | 14,930 | 24,486 | 17,192 | ||||||||||
146,170 | 139,920 | 127,090 | |||||||||||
Deferred | |||||||||||||
United States - federal | 29,730 | 31,808 | 25,028 | ||||||||||
United States - state and local | 948 | 5,510 | 3,881 | ||||||||||
Foreign | (15,339 | ) | (10,246 | ) | (8,743 | ) | |||||||
Foreign - changes in statutory rates | (2,087 | ) | (2,330 | ) | — | ||||||||
13,252 | 24,742 | 20,166 | |||||||||||
Total provision | $ | 159,422 | $ | 164,662 | $ | 147,256 | |||||||
A reconciliation of the income tax provision computed at the federal statutory rate to the effective tax rate for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Effect of: | |||||||||||||
State and local taxes, net of federal tax effect | 1.9 | % | 2.3 | % | 2.9 | % | |||||||
Foreign tax rates | (0.5 | )% | (0.8 | )% | (1.2 | )% | |||||||
Change in deferred tax assets from an increase in tax basis of foreign assets | (1.8 | )% | — | % | — | % | |||||||
Other | (1.9 | )% | (2.0 | )% | (1.4 | )% | |||||||
Effective tax rate | 32.7 | % | 34.5 | % | 35.3 | % | |||||||
Cash payments for income taxes were $128.1 million, $102.1 million, and $104.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Our deferred tax liabilities and assets at December 31, 2014 and 2013 were as follows: | |||||||||||||
In thousands | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | $ | (41,071 | ) | $ | (43,280 | ) | |||||||
Goodwill and intangibles | (453,854 | ) | (387,942 | ) | |||||||||
Total deferred tax liabilities | (494,925 | ) | (431,222 | ) | |||||||||
Deferred tax assets: | |||||||||||||
Accrued liabilities | 32,664 | 20,415 | |||||||||||
Stock based compensation | 21,139 | 20,361 | |||||||||||
Other | 17,922 | 5,264 | |||||||||||
Net operating tax loss carry-forwards | 20,017 | 8,097 | |||||||||||
Less: valuation allowance | (56 | ) | (1,122 | ) | |||||||||
Total deferred tax assets | 91,686 | 53,015 | |||||||||||
Net deferred tax liabilities | $ | (403,239 | ) | $ | (378,207 | ) | |||||||
At December 31, 2014, net operating loss carry-forwards for U.S. federal and state income tax purposes have been fully utilized, excluding net operating loss carry-forwards related to our acquisitions. The net operating loss carry-forwards from foreign and domestic acquisitions are approximately $58 million and certain of these net operating loss carry-forwards begin to expire in 2017. The tax benefit of these net operating losses is approximately $20 million at December 31, 2014, on which a valuation allowance of $56 thousand was recorded offsetting such tax benefit. During 2014, we reversed valuation allowances previously recorded in Japan, because net operating tax loss carry-forwards are now considered more likely than not to be realized. The valuation allowance primarily relates to loss carry-forwards for which limitations are in place and utilization before their expiration is uncertain. | |||||||||||||
Undistributed earnings of foreign subsidiaries are considered permanently reinvested, and therefore no deferred taxes are recorded thereon. The cumulative amounts of such earnings are approximately $421 million at December 31, 2014, and it is not practicable to estimate the amount of tax that may be payable upon distribution assuming repatriation. | |||||||||||||
We and our subsidiaries file U.S. federal income tax returns and income tax returns in various states and foreign jurisdictions. With a few exceptions, we are no longer subject to U.S. federal, state, local, or non-U.S. income tax examinations by tax authorities for years before 2011. In 2014, the Internal Revenue Service concluded an audit of our 2010 Corporate Income Tax return with no significant adjustments. | |||||||||||||
The Company has recorded accruals to cover certain unrecognized tax positions. Such unrecognized tax positions relate to additional taxes that 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 unrecognized tax positions as deemed necessary. The estimated amount of liability associated with the Company’s unrecognized tax positions that may significantly increase or decrease within the next twelve months cannot be reasonably estimated. | |||||||||||||
The total amount of unrecognized tax positions at December 31, 2014 is $15.1 million. The amount of unrecognized tax positions that, if recognized, would affect the effective tax rate is approximately $15.1 million. We recognized interest and penalties accrued related to income tax reserves in the amount of $0.3 million and $0.4 million, for the years ended December 31, 2014 and 2013, respectively, as a component of income tax expense. | |||||||||||||
The following table summarizes the changes in unrecognized tax positions during the years ended December 31, 2014 and 2013: | |||||||||||||
In thousands | |||||||||||||
Unrecognized tax positions at January 1, 2013 | $ | 16,104 | |||||||||||
Gross increases - tax positions in prior period | 267 | ||||||||||||
Gross decreases - tax positions in prior period | (1,129 | ) | |||||||||||
Gross increases - current period tax positions | 2,514 | ||||||||||||
Settlement | — | ||||||||||||
Lapse of statute of limitations | (2,846 | ) | |||||||||||
Unrecognized tax positions at December 31, 2013 | $ | 14,910 | |||||||||||
Gross increases - tax positions in prior period | 200 | ||||||||||||
Gross decreases - tax positions in prior period | (762 | ) | |||||||||||
Gross increases - current period tax positions | 3,081 | ||||||||||||
Settlement | (1,165 | ) | |||||||||||
Lapse of statute of limitations | (1,169 | ) | |||||||||||
Unrecognized tax positions at December 31, 2014 | $ | 15,095 | |||||||||||
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION | ||||||||||||||||
At December 31, 2014, we had the following stock option plans: | |||||||||||||||||
• | the 2014 Incentive Stock Plan, which our stockholders approved in May 2014; | ||||||||||||||||
• | 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 | ||||||||||||||||
At December 31, 2014, we have reserved a total of 9,450,645 shares for issuance under these plans. | |||||||||||||||||
In terms of the stock options authorized, the 2014 Plan, 2011 Plan, 2008 Plan, and the 2005 Plan provide for the grant of non-statutory stock options ("NSOs") and incentive stock options ("ISOs") intended to qualify under section 422 of the Internal Revenue Code; the 2000 Plan provides for the grant of NSOs; the 1997 Plan provided for the grant of NSOs and ISOs; and the Directors Plan provided for the grant of NSOs. | |||||||||||||||||
The 2014, 2011, 2008 and 2005 Plans authorize awards to our officers, employees and consultants, and following the expiration of the Directors Plan in May 2006, to our directors; the 2000 Plan authorized awards to our employees and consultants but not to our officers and directors; the 1997 Plan authorized awards to our officers, directors, employees and consultants; and the Directors Plan authorized awards to our outside directors. | |||||||||||||||||
The exercise price per share of an option granted under any of our stock option plans may not be less than the closing price of a share of our common stock on the date of grant. The maximum term of an option granted under any plan may not exceed 10 years. An option may be exercised only when it is vested and, in the case of an option granted to an employee (including an officer), only while he or she remains an employee and for a limited period following the termination of his or her employment. New shares are issued upon exercise of stock options. | |||||||||||||||||
Employee Stock Purchase Plan: | |||||||||||||||||
In October 2000, our Board of Directors adopted the Employee Stock Purchase Plan ("ESPP"), which our stock holders approved in May 2001, and was made effective as of July 1, 2001. The ESPP authorizes 900,000 shares of our common stock, which substantially most employees may purchase through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of the six-month offering periods. An employee's payroll deductions, and stock purchase, may not exceed $5,000 during any offering period. During 2014, 2013 and 2012, 60,189 shares, 52,956 shares, and 56,362 shares respectively, were issued through the ESPP. At December 31, 2014, we had 259,503 shares available for issuance under ESPP plan. | |||||||||||||||||
Stock Based Compensation Expense: | |||||||||||||||||
During 2014, there were no changes to our stock compensation plans or modifications to outstanding stock-based awards which would change the value of any awards outstanding. Compensation expense for all stock-based compensation awards granted subsequent to January 1, 2006 is based on the grant-date fair value determined in accordance with the provisions of FASB accounting standards for share-based payments. | |||||||||||||||||
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 Consolidated Statements of Income: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Cost of revenues - stock option plan | $ | 52 | $ | 120 | $ | 136 | |||||||||||
Selling, general and administrative - stock option plan | 15,214 | 15,212 | 13,630 | ||||||||||||||
Selling, general and administrative - RSUs | 1,267 | 1,116 | 1,474 | ||||||||||||||
Selling, general and administrative - ESPP | 1,240 | 1,009 | 1,099 | ||||||||||||||
Total pre-tax expense | $ | 17,773 | $ | 17,457 | $ | 16,339 | |||||||||||
The following table sets forth the tax benefits related to stock compensation: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Tax benefit recognized in Statements of Income | $ | 4,849 | $ | 4,518 | $ | 5,818 | |||||||||||
Excess tax benefit realized | 17,906 | 17,153 | 30,161 | ||||||||||||||
Stock Options: | |||||||||||||||||
Options granted to directors vest in one year and options granted to officers and employees generally vest over five years. Expense related to the graded vesting options is recognized using the straight-line method over the vesting period. Stock option activity for the year ended December 31, 2014, is summarized as follows: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Options | Average | ||||||||||||||||
Exercise | |||||||||||||||||
Price per | |||||||||||||||||
Share | |||||||||||||||||
Outstanding at beginning of year | 5,540,482 | $ | 70.29 | ||||||||||||||
Granted | 981,583 | 115.41 | |||||||||||||||
Exercised | (991,201 | ) | 53.49 | ||||||||||||||
Forfeited | (151,350 | ) | 96.43 | ||||||||||||||
Canceled or expired | (1,657 | ) | 80.96 | ||||||||||||||
Outstanding at December 31, 2014 | 5,377,857 | $ | 80.88 | ||||||||||||||
Exercisable at December 31, 2014 | 2,719,760 | $ | 65.54 | ||||||||||||||
Vested and expected to vest at December 31, 2014 | 5,176,959 | $ | 80.02 | ||||||||||||||
At December 31, 2014, there was $44.1 million of total unrecognized compensation expense related to non-vested option awards, which is expected to be recognized over a weighted average period of 2.81 years. | |||||||||||||||||
The following table sets forth the total intrinsic value of options exercised for the years ended December 31: | |||||||||||||||||
In thousands | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Total exercise intrinsic value of options exercised | $ | 65,884 | $ | 55,757 | $ | 97,816 | |||||||||||
The total exercise intrinsic value represents the total pre-tax value (the difference between the sales price on the trading day the option was exercised and the exercise price associated with the respective option). | |||||||||||||||||
The following table sets forth the information related to outstanding and exercisable options for the years ended December 31: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Weighted average remaining contractual life of outstanding options (in years) | 6.1 | 6.6 | 6.7 | ||||||||||||||
Total aggregate intrinsic value of outstanding options (in thousands) | $ | 269,900 | $ | 254,200 | $ | 175,200 | |||||||||||
Weighted average remaining contractual life of exercisable options (in years) | 5.1 | 5.3 | 5.5 | ||||||||||||||
Total aggregate intrinsic value of exercisable options (in thousands) | $ | 178,300 | $ | 161,100 | $ | 114,500 | |||||||||||
The total aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between our closing stock price on the last day of trading for the year ended December 31, 2014 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders assuming all option holders had exercised their options on December 31, 2014; this amount changes based on the fair market value of our stock. | |||||||||||||||||
Options outstanding and exercisable at December 31, 2014 by price range are presented below: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise Price | Shares | Outstanding Average Remaining Life in Years | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||
$22.90 - $46.83 | 663,353 | 3.03 | $ | 41.99 | 659,353 | $ | 42.06 | ||||||||||
$46.87 - $51.20 | 72,225 | 4.34 | 49.7 | 68,225 | 49.61 | ||||||||||||
$51.55 - $51.55 | 539,334 | 5.1 | 51.55 | 380,195 | 51.55 | ||||||||||||
$51.75 - $83.88 | 550,039 | 3.95 | 57.71 | 524,647 | 57.16 | ||||||||||||
$83.95 - $84.91 | 48,731 | 7.34 | 84.01 | 43,081 | 83.96 | ||||||||||||
$85.00 - $85.00 | 614,657 | 6.1 | 85 | 327,701 | 85 | ||||||||||||
$85.02 - $86.02 | 11,450 | 7.18 | 85.44 | 3,300 | 85.32 | ||||||||||||
$86.24 - $86.24 | 801,630 | 7.12 | 86.24 | 317,562 | 86.24 | ||||||||||||
$86.83 - $95.03 | 179,092 | 6.83 | 90.13 | 124,033 | 89.22 | ||||||||||||
$95.87 - $132.95 | 1,897,346 | 7.73 | 106.15 | 271,663 | 100.63 | ||||||||||||
$22.90 - $132.95 | 5,377,857 | 6.14 | $ | 80.88 | 2,719,760 | $ | 65.54 | ||||||||||
The Company uses historical data to estimate expected life and volatility. The estimated fair value of stock options at the time of the grant using the Black-Scholes model option pricing model was as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Stock options granted (shares) | 981,583 | 1,057,630 | 1,142,205 | ||||||||||||||
Weighted average fair value at grant date | $ | 21.31 | $ | 22.02 | $ | 20.14 | |||||||||||
Assumptions: | |||||||||||||||||
Expected term (in years) | 4.76 | 5.81 | 6 | ||||||||||||||
Expected volatility | 17.23 | % | 27.03 | % | 27.87 | % | |||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||
Risk free interest rate | 1.53 | % | 1 | % | 1.05 | % | |||||||||||
Restricted Stock Units: | |||||||||||||||||
The fair value of Restricted stock units ("RSUs") is based on the closing price of the Company's common stock on the date of grant and is amortized to expense over the service period. RSUs vest at the end of three or five years. Our 2008, 2011 and 2014 Plans include a share reserve related to RSUs granted at a 2-1 ratio. The following table sets forth the information related to RSUs for the years ended December 31: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Total aggregate intrinsic value of outstanding units (in thousands) | $ | 8,337 | $ | 8,185 | $ | 6,362 | |||||||||||
Per share fair value of units granted | 115.67 | 96.4 | 86.24 | ||||||||||||||
A summary of the status of our non-vested RSUs and changes during the year ended December 31, 2014, are as follows: | |||||||||||||||||
Number of | Weighted Average Grant Date Fair Value | ||||||||||||||||
Units | |||||||||||||||||
Non-vested at beginning of year | 70,457 | $ | 88.32 | ||||||||||||||
Granted | 16,334 | 115.67 | |||||||||||||||
Vested and released | (17,288 | ) | 85 | ||||||||||||||
Forfeited | (5,903 | ) | 90.53 | ||||||||||||||
Non-vested at December 31, 2014 | 63,600 | $ | 96.04 | ||||||||||||||
At December 31, 2014, there was $4.1 million of total unrecognized compensation expense related to RSUs, which is expected to be recognized over a weighted average period of 2.87 years. The fair value of units that vested during the years ended December 31, 2014, 2013 and 2012 was $2.0 million, $1.2 million, and $0.4 million, respectively. |
PREFERRED_STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
PREFERRED STOCK | PREFERRED STOCK |
At December 31, 2014 and 2013, we had 1,000,000 authorized shares of preferred stock and no shares issued or outstanding. |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 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: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator: | |||||||||||||
Numerator for basic earnings per share net income attributable to Stericycle, Inc. | $ | 326,456 | $ | 311,372 | $ | 267,996 | |||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share-weighted average shares | 84,932,792 | 85,902,550 | 85,401,365 | ||||||||||
Effect of diluted securities: | |||||||||||||
Employee stock options | 1,300,820 | 1,489,438 | 1,617,108 | ||||||||||
Denominator for diluted earnings per share-adjusted weighted average shares and after assumed exercises | 86,233,612 | 87,391,988 | 87,018,473 | ||||||||||
Earnings per share – Basic | $ | 3.84 | $ | 3.62 | $ | 3.14 | |||||||
Earnings per share – Diluted | $ | 3.79 | $ | 3.56 | $ | 3.08 | |||||||
For additional information regarding outstanding employee stock options, see Note 6 - Stock Based Compensation, in the Notes to the Consolidated Financial Statements. | |||||||||||||
In 2014, 2013 and 2012, options to purchase 830,755 shares, 846,808 shares, and 1,049,707 shares, respectively, at exercise prices of $105.12-$132.95, $94.76-$119.19, and $77.49-$94.76 were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
The following table sets forth the changes in the components of accumulated other comprehensive income for 2014, 2013 and 2012: | |||||||||||||
In thousands | |||||||||||||
Currency Translation Adjustments | Unrealized Gains (Losses) on Cash Flow Hedges | Accumulated Other Comprehensive Income/ (Loss) | |||||||||||
Beginning balance at January 1, 2012 | $ | (43,584 | ) | $ | (2,400 | ) | $ | (45,984 | ) | ||||
Period change | 6,292 | 628 | 6,920 | ||||||||||
Ending balance at December 31, 2012 | $ | (37,292 | ) | $ | (1,772 | ) | $ | (39,064 | ) | ||||
Period change | (17,718 | ) | 314 | (17,404 | ) | ||||||||
Ending balance at December 31, 2013 | $ | (55,010 | ) | $ | (1,458 | ) | $ | (56,468 | ) | ||||
Period change | (80,221 | ) | (1,730 | ) | (81,951 | ) | |||||||
Ending balance at December 31, 2014 | $ | (135,231 | ) | $ | (3,188 | ) | $ | (138,419 | ) | ||||
The tax impact of the unrealized gains/ (losses) on cash flow hedges in accumulated other comprehensive income at December 31, 2014, 2013 and 2012 was $1.0 million, $0.2 million, and $0.4 million, respectively. Translation adjustments are not tax-effected as the Company’s net investment in foreign subsidiaries and all related foreign earnings are deemed permanently invested. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment at December 31, 2014 and 2013 consisted of the following items: | |||||||||
In thousands | |||||||||
2014 | 2013 | ||||||||
Land and improvements | $ | 63,600 | $ | 26,818 | |||||
Building and improvements | 142,680 | 113,740 | |||||||
Machinery and equipment | 250,684 | 214,324 | |||||||
Vehicles | 56,650 | 46,579 | |||||||
Containers | 155,238 | 145,273 | |||||||
Office equipment and furniture | 80,158 | 68,005 | |||||||
Software | 40,291 | 25,676 | |||||||
Construction in progress | 35,231 | 41,583 | |||||||
Total property, plant & equipment | 824,532 | 681,998 | |||||||
Less: accumulated depreciation | (364,124 | ) | (323,031 | ) | |||||
Property, plant and equipment, net | $ | 460,408 | $ | 358,967 | |||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
Goodwill: | ||||||||||||||||||||||||
We have two geographical reportable segments, "United States" and "International," both of which have goodwill. The changes in the carrying amount of goodwill since January 1, 2013, by reportable segment, were as follows: | ||||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||
United States | International | Total | ||||||||||||||||||||||
Balance at January 1, 2013 | $ | 1,616,286 | $ | 448,817 | $ | 2,065,103 | ||||||||||||||||||
Goodwill acquired during year | 57,250 | 116,534 | 173,784 | |||||||||||||||||||||
Purchase accounting allocation adjustments | 4,541 | 1,470 | 6,011 | |||||||||||||||||||||
Changes due to foreign currency fluctuations | — | (13,316 | ) | (13,316 | ) | |||||||||||||||||||
Balance at December 31, 2013 | 1,678,077 | 553,505 | 2,231,582 | |||||||||||||||||||||
Goodwill acquired during year | 169,754 | 88,263 | 258,017 | |||||||||||||||||||||
Purchase accounting allocation adjustments | (4,825 | ) | (17,595 | ) | (22,420 | ) | ||||||||||||||||||
Changes due to foreign currency fluctuations | — | (48,347 | ) | (48,347 | ) | |||||||||||||||||||
Balance at December 31, 2014 | $ | 1,843,006 | $ | 575,826 | $ | 2,418,832 | ||||||||||||||||||
Current year adjustments to goodwill for certain 2013 acquisitions are primarily due to the finalization of intangible asset valuations. | ||||||||||||||||||||||||
During the quarter ended June 30, 2014, we performed our annual goodwill impairment evaluation for our three reporting units: Domestic Regulated and Compliance Services, Domestic Regulated Recall and Returns Management Services, and International Regulated and Compliance Services. We calculated fair value for our reporting units using an income method and validated those results using a market approach. Both the income and market approaches indicated no impairment to goodwill to any of our three reporting units. | ||||||||||||||||||||||||
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 Domestic Regulated and Compliance Services and Recall and Returns Management Services reporting units exceeded book value by a substantial amount; in excess of 100%. Our International Regulated and Compliance Services reporting units' fair value exceeded book value by approximately 85% and had $576.7 million in assigned goodwill at June 30, 2014. | ||||||||||||||||||||||||
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, 2014. 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 changes in the 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 months' 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 corroborated the results of the impairment test under the income approach and indicated the fair value of our reporting units exceeded their respective book values by substantial amounts, in excess of 100% of their respective book values. | ||||||||||||||||||||||||
Other Intangible Assets: | ||||||||||||||||||||||||
At December 31, 2014 and 2013, the values of other intangible assets were as follows: | ||||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Amortizable intangibles: | ||||||||||||||||||||||||
Covenants not-to-compete | $ | 8,474 | $ | 5,688 | $ | 2,786 | $ | 9,405 | $ | 5,366 | $ | 4,039 | ||||||||||||
Customer relationships | 755,148 | 107,365 | 647,783 | 670,889 | 81,271 | 589,618 | ||||||||||||||||||
Trade names | 6,062 | 1,313 | 4,749 | 5,283 | 1,031 | 4,252 | ||||||||||||||||||
Technology | 611 | 521 | 90 | 611 | 416 | 195 | ||||||||||||||||||
Other | 539 | 35 | 504 | 91 | 14 | 77 | ||||||||||||||||||
Indefinite lived intangibles: | ||||||||||||||||||||||||
Operating permits | 247,933 | — | 247,933 | 116,054 | — | 116,054 | ||||||||||||||||||
Trade names | 5,800 | — | 5,800 | 5,800 | — | 5,800 | ||||||||||||||||||
Total | $ | 1,024,567 | $ | 114,922 | $ | 909,645 | $ | 808,133 | $ | 88,098 | $ | 720,035 | ||||||||||||
In 2014 and 2013, we wrote off $9.9 million and $2.9 million in operating permits due to rationalizing certain of our domestic and international operations. These expenses are reflected as part of SG&A expenses. Under generally accepted accounting principles, a fair value must be assigned to all acquired assets based on a theoretical "market participant" regardless of the acquirers' intended use for these assets. This accounting treatment can lead to the recognition of losses when a company disposes of acquired assets. We complete our annual impairment analysis of our indefinite lived intangibles during the quarter ended December 31 of each year, or more frequently, if circumstances indicate that they may be impaired. | ||||||||||||||||||||||||
Our finite-lived intangible assets are amortized over their useful lives. We have determined that our customer relationships have useful lives from 10 to 40 years based upon the type of customer, with a weighted average remaining useful life of 23.8 years. We have covenants not-to-compete intangibles with useful lives from 3 to 14 years, with a weighted average remaining useful life of 4.7 years. We have tradename intangibles with useful lives from 10 to 40 years, with a weighted average remaining useful life of 15.8 years. We have technology with a useful life of 5 years, with a weighted average remaining useful life of 1.0 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. | ||||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012 the aggregate amortization expense was $32.7 million, $27.1 million and $22.1 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 | ||||||||||||||||||||||||
2015 | $ | 34,431 | ||||||||||||||||||||||
2016 | 34,091 | |||||||||||||||||||||||
2017 | 33,946 | |||||||||||||||||||||||
2018 | 33,891 | |||||||||||||||||||||||
2019 | 33,870 | |||||||||||||||||||||||
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 at December 31, 2014. |
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
ACCRUED LIABILITIES | ACCRUED LIABILITIES | ||||||||
Accrued liabilities at December 31, 2014 and 2013 consisted of the following items: | |||||||||
In thousands | |||||||||
2014 | 2013 | ||||||||
Accrued compensation | $ | 37,932 | $ | 36,210 | |||||
Accrued insurance | 40,387 | 29,363 | |||||||
Accrued taxes | 17,847 | 19,538 | |||||||
Accrued interest | 9,096 | 8,593 | |||||||
Accrued professional services liabilities | 3,703 | 3,097 | |||||||
Accrued liabilities - other | 22,778 | 10,644 | |||||||
Total accrued liabilities | $ | 131,743 | $ | 107,445 | |||||
ENVIRONMENTAL_REMEDIATION_LIAB
ENVIRONMENTAL REMEDIATION LIABILITIES | 12 Months Ended |
Dec. 31, 2014 | |
Environmental Remediation Obligations [Abstract] | |
ENVIRONMENTAL REMEDIATION LIABILITIES | ENVIRONMENTAL REMEDIATION LIABILITIES |
We record a liability for environmental remediation when such liability becomes probable and the costs or damages can be reasonably estimated. We accrue environmental remediation costs, on an undiscounted basis, associated with identified sites where an assessment has indicated that cleanup costs are probable and can be reasonably estimated, but the timing of such payments is not fixed and determinable. Such accruals are based on currently available information, estimated timing of remedial actions, existing technology, and enacted laws and regulations. The liability for environmental remediation is included in the Consolidated Balance Sheets in current liabilities within "Accrued liabilities" and in noncurrent liabilities within "Other liabilities." | |
At December 31, 2014, the total environmental remediation liabilities recorded were $32.6 million, of which $2.9 million was classified as accrued liabilities and $29.7 million was classified as other liabilities. |
DEBT
DEBT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
DEBT | DEBT | ||||||||
Long-term debt consisted of the following at December 31: | |||||||||
In thousands | |||||||||
2014 | 2013 | ||||||||
Obligations under capital leases | $ | 9,185 | $ | 7,343 | |||||
$1.2 billion senior credit facility weighted average rate 1.50%, due in 2019 | 459,975 | 272,358 | |||||||
$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 | |||||||
Promissory notes and deferred consideration weighted average rate of 4.07% and weighted average maturity of 3.5 years | 279,590 | 252,195 | |||||||
Foreign bank debt weighted average rate 9.48% and weighted average maturity of 1.8 years | 160,465 | 149,147 | |||||||
Total debt | 1,659,215 | 1,431,043 | |||||||
Less: current portion of total debt | 131,969 | 150,380 | |||||||
Long-term portion of total debt | $ | 1,527,246 | $ | 1,280,663 | |||||
Payments due on long-term debt, excluding capital lease obligations, during each of the five years subsequent to December 31, 2014 are as follows: | |||||||||
In thousands | |||||||||
2015 | $ | 128,339 | |||||||
2016 | 253,245 | ||||||||
2017 | 263,010 | ||||||||
2018 | 33,907 | ||||||||
2019 | 601,527 | ||||||||
Thereafter | 370,002 | ||||||||
$ | 1,650,030 | ||||||||
We paid interest of $57.8 million, $51.0 million, and $47.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
Property under capital leases included with property, plant and equipment in the accompanying consolidated balance sheets is as follows at December 31: | |||||||||
In thousands | |||||||||
2014 | 2013 | ||||||||
Land | $ | 174 | $ | 198 | |||||
Buildings | 896 | 550 | |||||||
Machinery and equipment | 1,230 | 2,262 | |||||||
Vehicles | 13,108 | 10,530 | |||||||
Less: accumulated depreciation | (5,375 | ) | (3,905 | ) | |||||
$ | 10,033 | $ | 9,635 | ||||||
Amortization related to these capital leases is included with depreciation expense. | |||||||||
Minimum future lease payments under capital leases are as follows: | |||||||||
In thousands | |||||||||
2015 | $ | 4,788 | |||||||
2016 | 3,379 | ||||||||
2017 | 2,664 | ||||||||
2018 | 90 | ||||||||
2019 | 62 | ||||||||
Thereafter | 453 | ||||||||
Total minimum lease payments | 11,436 | ||||||||
Less: amounts representing interest | (2,251 | ) | |||||||
Present value of net minimum lease payments | 9,185 | ||||||||
Less: current portion included in other current liabilities | (3,630 | ) | |||||||
Long-term obligations under capital leases | $ | 5,555 | |||||||
Our $1.2 billion senior credit facility maturing in June 2019, our $100.0 million private placement notes maturing April 2015, our $175.0 million private placement notes maturing in October 2017, our $125.0 million private placement notes maturing in December 2019, our $225.0 million private placement notes maturing in October 2020, and our $125.0 million private placement notes maturing in December 2022, 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 December 31, 2014, we were in compliance with all of our financial debt covenants. | |||||||||
On June 3, 2014, we and certain of our subsidiaries entered into a second amended and restated credit agreement (the "new credit agreement") with Bank of America, N.A., as administrative agent, swingline lender, a lender and a letter of credit issuer, other lenders party to the new credit agreement, JPMorgan Chase Bank, N.A. and HSBC Bank USA, National Association, as syndication agents, and Union Bank, N.A. and Santander Bank, National Association, as co-documentation agents. The new credit agreement amended and restated our prior amended and restated credit agreement dated as of September 21, 2011. The new credit agreement increases our unsecured revolving credit facility from $1.0 billion to $1.2 billion and extends the maturity date of our borrowings from September 21, 2016 to June 3, 2019. We paid $2.1 million in financing fees which will be amortized to interest expense over the life of the new credit agreement. | |||||||||
At December 31, 2014 and 2013, we had $162.9 million and $155.0 million, respectively, committed to outstanding letters of credit under our senior credit facility. The unused portion of the revolving credit facility was $577.1 million and $572.6 million at December 31, 2014 and 2013, respectively. | |||||||||
Our $100.0 million private placement notes that mature in April 2015 were classified as long-term debt due to our intent to pay this obligation by borrowing on our $1.2 billion senior credit facility. |
LEASE_COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
LEASE COMMITMENTS | LEASE COMMITMENTS | ||||
We lease various plant equipment, office furniture and equipment, motor vehicles, office and warehouse space, and landfills under operating lease agreements, which expire at various dates over the next 20 years. The leases for most of the properties contain renewal provisions. | |||||
Rent expense for 2014, 2013 and 2012 was $111.5 million, $92.4 million, and $85.5 million, respectively. | |||||
Minimum future rental payments under non-cancelable operating leases that have initial or remaining terms in excess of one year at December 31, 2014 for each of the next five years and in the aggregate are as follows: | |||||
In thousands | |||||
2015 | $ | 81,926 | |||
2016 | 69,069 | ||||
2017 | 59,864 | ||||
2018 | 45,680 | ||||
2019 | 34,728 | ||||
Thereafter | 44,098 | ||||
$ | 335,365 | ||||
EMPLOYEE_BENEFIT_PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLAN |
We have a 401(k) defined contribution retirement savings plan covering substantially all domestic employees. Each participant may elect to defer a portion of his or her compensation subject to certain limitations. We may contribute up to 50% of the first 5% of compensation contributed to the plan by each employee up to a maximum of $1,750 per annum. Our contributions for the years ended December 31, 2014, 2013 and 2012 were approximately $3.6 million, $3.0 million, and $2.8 million, respectively. | |
The Company has several foreign defined contribution plans, which require the Company to contribute a percentage of the participating employee’s salary according to local regulations. For the years ended December 31, 2014, 2013 and 2012, total contributions made by the Company for these plans were approximately $1.9 million, $0.9 million, and $0.8 million, respectively. |
PRODUCTS_AND_SERVICES_AND_GEOG
PRODUCTS AND SERVICES AND GEOGRAPHIC INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
PRODUCTS AND SERVICES AND GEOGRAPHIC INFORMATION | PRODUCTS AND SERVICES AND GEOGRAPHIC INFORMATION | ||||||||||||
The FASB Accounting Standards Codification Topic 280, Segment Reporting, requires segment information to be reported based on information utilized by executive management to internally assess performance and make operating decisions. We have determined that we have three operating segments based on the organizational structure of our company and information reviewed. These operating segments are Domestic Regulated and Compliance Services, Domestic Regulated Recall and Returns Management Services, and International Regulated and Compliance Services ("International"). We have aggregated Domestic Regulated and Compliance Services, and Domestic Regulated Recall and Returns Management Services into one reportable segment, ("United States"), based on our consideration of the following aggregation criteria: | |||||||||||||
• | the long term economics | ||||||||||||
• | the nature of the products and services | ||||||||||||
• | the nature of the production processes | ||||||||||||
• | the type or class of customer for their products and services | ||||||||||||
• | the methods used to distribute their products or provide their services | ||||||||||||
• | the nature of the regulatory environment. | ||||||||||||
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 reportable segments. Summary information for our reportable segments is as follows: | |||||||||||||
In thousands | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues: | |||||||||||||
United States | $ | 1,796,796 | $ | 1,506,587 | $ | 1,370,806 | |||||||
International: | |||||||||||||
Europe | 407,082 | 341,387 | 301,615 | ||||||||||
Other international countries | 351,723 | 294,833 | 240,728 | ||||||||||
Total International | 758,805 | 636,220 | 542,343 | ||||||||||
Total | $ | 2,555,601 | $ | 2,142,807 | $ | 1,913,149 | |||||||
Income before income taxes: | |||||||||||||
United States | $ | 436,229 | $ | 404,620 | $ | 359,748 | |||||||
International | 51,339 | 73,126 | 57,449 | ||||||||||
Total | $ | 487,568 | $ | 477,746 | $ | 417,197 | |||||||
Total assets: | |||||||||||||
United States | $ | 3,008,547 | $ | 2,541,323 | $ | 2,427,297 | |||||||
International | 1,393,175 | 1,346,650 | 1,119,441 | ||||||||||
Total | $ | 4,401,722 | $ | 3,887,973 | $ | 3,546,738 | |||||||
Property, Plant and Equipment, net: | |||||||||||||
United States | $ | 297,558 | $ | 214,810 | $ | 207,387 | |||||||
International: | |||||||||||||
Europe | 70,621 | 74,915 | 64,690 | ||||||||||
Other international countries | 92,229 | 69,242 | 63,793 | ||||||||||
Total International | 162,850 | 144,157 | 128,483 | ||||||||||
Total | $ | 460,408 | $ | 358,967 | $ | 335,870 | |||||||
Revenues are attributable to countries based on the location of customers. Intercompany revenues recorded by the United States for work performed in Canada are eliminated prior to reporting United States revenues. The same accounting principles and critical accounting policies are used in the preparation of the financial statements for both reportable segments. | |||||||||||||
Detailed information for our United States reportable segment is as follows: | |||||||||||||
In thousands | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Regulated and compliance solutions | $ | 1,715,437 | $ | 1,408,812 | $ | 1,254,486 | |||||||
Recall and returns solutions | 81,359 | 97,775 | 116,320 | ||||||||||
Total revenue | $ | 1,796,796 | $ | 1,506,587 | $ | 1,370,806 | |||||||
Net interest expense | 44,926 | 43,131 | 41,084 | ||||||||||
Income before income taxes | 436,229 | 404,620 | 359,748 | ||||||||||
Income taxes | 161,672 | 152,874 | 138,807 | ||||||||||
Net income attributable to Stericycle, Inc. | $ | 274,557 | $ | 251,746 | $ | 220,941 | |||||||
Depreciation and amortization | $ | 59,888 | $ | 50,166 | $ | 45,234 | |||||||
Capital expenditures | 57,019 | 43,442 | 38,528 | ||||||||||
Detailed information for our International reportable segment is as follows: | |||||||||||||
In thousands | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Regulated and compliance solutions | $ | 758,805 | $ | 636,220 | $ | 542,343 | |||||||
Net interest expense | 21,096 | 11,818 | 10,186 | ||||||||||
Income before income taxes | 51,339 | 73,126 | 57,449 | ||||||||||
Income taxes | (2,250 | ) | 11,788 | 8,449 | |||||||||
Net income | 53,589 | 61,338 | 49,000 | ||||||||||
Less: net income attributable to noncontrolling interests | 1,690 | 1,712 | 1,945 | ||||||||||
Net income attributable to Stericycle, Inc. | $ | 51,899 | $ | 59,626 | $ | 47,055 | |||||||
Depreciation and amortization | $ | 44,728 | $ | 38,242 | $ | 31,049 | |||||||
Capital expenditures | 29,477 | 29,667 | 26,708 | ||||||||||
LEGAL_PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Dec. 31, 2014 | |
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. Liabilities from litigation are accrued when known, probable and estimable. | |
Class Action Lawsuits. 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 sought 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 qui tam complaint was filed on behalf of the United States and 14 states and the District of Columbia. On September 4, 2013, we filed our answer to Plaintiff-Relator’s Second Amended Complaint, generally denying the allegations therein. Also, as previously disclosed, 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. The qui tam case is in the early stages of discovery. | |
Following the filing of the Pennsylvania class action complaint, we were served with class action complaints filed in federal court in California, Florida, Illinois, Mississippi and Utah and in state court in California. These complaints asserted 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 ("MDL") granted our Motion to Transfer these related actions to the Northern District of Illinois for centralized pretrial proceedings. On December 10, 2013, we filed our answer to the Amended Consolidated Class Action Complaint in the MDL action, generally denying the allegations therein. The MDL action is in the early stages of discovery. | |
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. | |
We have not accrued any amounts in respect of these lawsuits, and we cannot estimate the reasonably possible loss or the range of reasonably possible losses that we may incur. We are unable to make such an estimate because (i) litigation is by its nature uncertain and unpredictable, (ii) the proceedings are at an early stage and (iii) in our judgment, there are no comparable proceedings against other defendants that might provide guidance in making estimates. | |
Utah Proceedings. As previously disclosed, on December 3, 2014, we entered into an administrative settlement order (the "Settlement") with the State of Utah Division of Air Quality (the "DAQ") concerning a notice of violation and order to comply issued by the DAQ on May 28, 2013 and superseded by an amended notice of violation and order to comply issued on August 28, 2013 (the "NOV"). Under the Settlement, without admitting to any of the allegations contained in the NOV, we agreed to pay a civil penalty of $2,322,536, of which half, or $1,161,268, was paid within 30 days after December 3, 2014. The remaining $1,161,268 will not be paid but instead will be credited to us as a Supplemental Environmental Project credit when we permanently close our North Salt Lake incineration facility which is required to occur no later than three years after we receive all permits and approvals necessary to commence construction of a new incineration facility to be located in Tooele County, Utah. The Settlement provides full and final resolution of any and all claims under the authority of the DAQ arising out of the allegations contained in the NOV and cannot be used by other parties to allege violations or negligence on our part in any other litigation or proceeding. | |
Junk Fax Lawsuit. On April 2, 2014, we were served with a class action complaint filed in the U.S. District Court for the Northern District of Illinois (Case 1:14-cv-02070) by an individual plaintiff for himself and on behalf of all other “similarly situated” persons. The complaint alleges, among other things, that we sent facsimile transmissions of unsolicited advertisements to plaintiff and others similarly situated in violation of the Telephone Consumer Protection Act of 1991, as amended by the Junk Fax Prevention Act of 2005 (the "TCPA"). The complaint seeks certification of the lawsuit as a class action and the award to class members of the greater of actual damages or the sum of $500 for each violation and injunctive and other relief. Under the TCPA, the statutory remedy of $500 per violation may be trebled if the Court finds the violations to be willful or knowing. On May 22, 2014, we filed our answer to the complaint, generally denying the allegations therein. Discovery in the case is proceeding. | |
We have not accrued any amounts in respect of the TCPA action, and we cannot estimate the reasonably possible loss or the range of reasonably possible losses that we may incur. We are unable to make such an estimate because (i) the proceedings are at an early stage and discovery is ongoing and (ii) other reported TCPA claims have resulted in a broad range of outcomes, with each case being dependent on its own unique facts and circumstances. | |
We review all of our outstanding legal proceedings with counsel quarterly, and we will disclose an estimate of any reasonably possible loss or range of reasonably possible losses if and when we are able to make such an estimate and the reasonably possible loss or range of reasonably possible losses is material to our financial statements. | |
Environmental Matters. | |
On April 22, 2014, we completed our acquisition of PSC Environmental Services, LLC ("PSC Environmental") and consequently became subject to the legal proceedings in which PSC Environmental was a party on that date. PSC Environmental’s operations are regulated by federal, state and local laws enacted to regulate the discharge of materials into the environment, remediate contaminated soil and groundwater or otherwise protect the environment. As a result of this continuing regulation, PSC Environmental frequently becomes a party to legal or administrative proceedings involving various governmental authorities and other interested parties. The issues involved in these proceedings generally relate to alleged violations of existing permits and licenses or alleged responsibility under federal or state Superfund laws to remediate contamination at properties owned either by PSC Environmental or by other parties to which either PSC Environmental or the prior owners of certain of its facilities shipped wastes. | |
From time to time, PSC Environmental pays fines or penalties in regulatory proceedings relating primarily to waste treatment, storage or disposal facilities. We believe that the fines or other penalties that PSC Environmental may pay in connection with any pending regulatory proceedings of this nature will not, individually or in the aggregate, be material to our financial statements. | |
On September 18, 2014, our wholly-owned subsidiary, Stericycle Specialty Waste Solutions, Inc., received a notice of violation ("NOV") from the New Mexico Environment Department ("NMED") concerning our 10-day transfer facility in Albuquerque. The violations alleged in the NOV generally relate to the management of Conditionally Exempt Small Quantity Generator ("CESQG") waste under a CESQG agreement that we have with NMED, as well as some recordkeeping matters. We have met with NMED and are currently in discussions regarding a resolution of the matters alleged in the NOV. We believe that the penalties ultimately assessed under the NOV could exceed $100,000 but that, in any event, they will not be material to our financial statements. |
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||||||
The following table summarizes our unaudited consolidated quarterly results of operations as reported for 2014 and 2013: | |||||||||||||||||||||
In thousands, except per share data | |||||||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | 2014 | |||||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||||||
Revenues | $ | 569,955 | $ | 640,822 | $ | 667,877 | $ | 676,947 | $ | 2,555,601 | |||||||||||
Gross profit | 255,469 | 275,304 | 278,669 | 284,969 | 1,094,411 | ||||||||||||||||
Acquisition expenses | (3,221 | ) | (3,979 | ) | (3,472 | ) | (2,661 | ) | (13,333 | ) | |||||||||||
Integration expenses | (2,485 | ) | (4,679 | ) | (7,461 | ) | (11,343 | ) | (25,968 | ) | |||||||||||
Change in fair value of contingent consideration | (4,789 | ) | 836 | — | 5,405 | 1,452 | |||||||||||||||
Plant conversion and restructuring expenses | (574 | ) | (1,115 | ) | (2,380 | ) | (10,495 | ) | (14,564 | ) | |||||||||||
Litigation expenses | (1,505 | ) | (396 | ) | (1,342 | ) | (3,331 | ) | (6,574 | ) | |||||||||||
Net income attributable to Stericycle, Inc. | 79,149 | 81,936 | 82,845 | 82,526 | 326,456 | ||||||||||||||||
* Basic earnings per common share | $ | 0.93 | $ | 0.97 | $ | 0.98 | $ | 0.97 | $ | 3.84 | |||||||||||
* Diluted earnings per common share | $ | 0.91 | $ | 0.95 | $ | 0.96 | $ | 0.96 | $ | 3.79 | |||||||||||
In thousands, except per share data | |||||||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | 2013 | |||||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||||||
Revenues | $ | 513,804 | $ | 526,525 | $ | 534,579 | $ | 567,899 | $ | 2,142,807 | |||||||||||
Gross profit | 232,094 | 237,852 | 241,403 | 253,285 | 964,634 | ||||||||||||||||
Acquisition expenses | (1,803 | ) | (2,324 | ) | (2,111 | ) | (4,037 | ) | (10,275 | ) | |||||||||||
Integration expenses | (896 | ) | (1,383 | ) | (1,423 | ) | (2,819 | ) | (6,521 | ) | |||||||||||
Change in fair value of contingent consideration | — | 122 | 185 | 1,971 | 2,278 | ||||||||||||||||
Restructuring costs and plant closure expense | — | (104 | ) | (787 | ) | (2,012 | ) | (2,903 | ) | ||||||||||||
Impairment of intangible assets | — | — | — | (1,405 | ) | (1,405 | ) | ||||||||||||||
Litigation settlement | (106 | ) | 2 | (12 | ) | (2,120 | ) | (2,236 | ) | ||||||||||||
Net income attributable to Stericycle, Inc. | 74,617 | 78,044 | 80,547 | 78,164 | 311,372 | ||||||||||||||||
* Basic earnings per common share | $ | 0.87 | $ | 0.91 | $ | 0.94 | $ | 0.91 | $ | 3.62 | |||||||||||
* Diluted earnings per common share | $ | 0.85 | $ | 0.89 | $ | 0.92 | $ | 0.9 | $ | 3.56 | |||||||||||
* | EPS calculated on a quarterly basis, and, as such, the amounts may not total the calculated full-year EPS. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS |
We have evaluated subsequent events through the date of filing our annual report on Form 10-K. No events have occurred that would require adjustment to or disclosure in the consolidated financial statements. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | STERICYCLE, INC. AND SUBSIDIARIES | ||||||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
In thousands | |||||||||||||||||||||
Allowance for doubtful accounts | Balance Beginning of Period | Charges to Expenses | Other | Write-offs/ Payments | Balance End of Period | ||||||||||||||||
Charges/ (Reversals) (1) | |||||||||||||||||||||
2012 | $ | 18,905 | $ | 4,634 | $ | 414 | $ | (4,510 | ) | $ | 19,443 | ||||||||||
2013 | $ | 19,443 | $ | 4,823 | $ | 322 | $ | (5,454 | ) | $ | 19,134 | ||||||||||
2014 | $ | 19,134 | $ | 9,869 | $ | 842 | $ | (10,762 | ) | $ | 19,083 | ||||||||||
-1 | Amounts consist primarily of valuation allowances assumed from acquired companies and currency translation adjustments. | ||||||||||||||||||||
In thousands | |||||||||||||||||||||
Valuation Allowance on Deferred Tax Assets | Balance Beginning of Period | Additions/ (Deductions) Charged to/ (from) Income Tax Expense | Other | Balance End | |||||||||||||||||
Changes | of Period | ||||||||||||||||||||
to Reserves (2) | |||||||||||||||||||||
2012 | $ | 3,775 | $ | — | $ | (435 | ) | $ | 3,340 | ||||||||||||
2013 | $ | 3,340 | $ | (1,451 | ) | $ | (767 | ) | $ | 1,122 | |||||||||||
2014 | $ | 1,122 | $ | — | $ | (1,066 | ) | $ | 56 | ||||||||||||
-2 | Amounts consist primarily of valuation allowances on acquired deferred tax assets from business combinations. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Principles of Consolidation | Principles of Consolidation: | ||
The consolidated financial statements include the accounts of Stericycle, Inc. and its subsidiaries. | |||
Revenue Recognition | Revenue Recognition: | ||
Revenues for our regulated waste management services, other than our compliances services such as Steri-Safe, are recognized at the time of waste collection. Our compliance service revenues are recognized evenly over the contractual service period. Payments received in advance are deferred and recognized as services are provided. Revenues from hazardous waste services are recorded at the time waste is received at our processing facility. Revenues from regulated recall and returns management services and communication solutions are recorded at the time services are performed. Revenues from product sales are recognized at the time the goods are shipped to the ordering customer. Charges related to international value added tax ("VAT") and other similar pass through taxes are not included as revenue. | |||
Cash Equivalents and Short-Term Investments | Cash Equivalents and Short-Term Investments: | ||
We consider all highly liquid investments with a maturity of less than three months when purchased to be cash equivalents. Short-term investments consist of certificates of deposit which mature in less than one year. | |||
Property, Plant and Equipment | Property, Plant and Equipment: | ||
Property, plant and equipment are stated at cost. Depreciation and amortization, which include the depreciation of assets recorded under capital leases, are computed using the straight-line method over the estimated useful lives of the assets as follows: | |||
Building and improvements | 5 to 50 years | ||
Machinery and equipment | 3 to 30 years | ||
Containers | 2 to 20 years | ||
Vehicles | 2 to 7 years | ||
Office equipment and furniture | 2 to 15 years | ||
Software | 2 to 7 years | ||
Our containers have a weighted average remaining useful life of 13.1 years. | |||
Acquisition Accounting | Acquisition Accounting: | ||
Acquisition accounting requires us to recognize assets and liabilities at their fair value. The process of determining fair value requires time to complete therefore we will make some estimates at the time of acquisition. These estimates are primarily for amortizable intangibles and, if appropriate, an associated deferred tax liability. These estimates are based on historical experience and allow us to recognize amortization expense until the final valuation is complete. | |||
Goodwill and Identifiable Intangibles | Goodwill and Identifiable Intangibles: | ||
Goodwill and identifiable indefinite lived intangible assets are not amortized, but are subject to an annual impairment test (see Note 11 - Goodwill and Other Intangible Assets for more information about goodwill and the annual impairment test). Our finite-lived intangible assets are amortized over their useful lives. We have determined that our customer relationships have useful lives from 10 to 40 years based upon the type of customer, with a weighted average remaining useful life of 23.8 years. We have covenants not-to-compete intangibles with useful lives from 3 to 14 years, with a weighted average remaining useful life of 4.7 years. We have tradename intangibles with useful lives from 10 to 40 years, with a weighted average remaining useful life of 15.8 years. We have technology with useful life of 5 years, with a weighted average remaining useful life of 1.0 years. We have determined that our permits have indefinite lives due to our ability to renew these permits with minimal additional cost, and therefore they are not amortized. We also have a tradename that we have determined has an indefinite life. | |||
Our indefinite lived intangible assets are tested for impairment annually at December 31, or more frequently, if circumstances indicate that they may be impaired. We use a qualitative assessment, as provided for under the FASB Accounting Standards Codification Topic 350, Intangibles - Goodwill and Other, to determine if is is more likely then not that the asset is impaired. If there is an indication of impairment, we test the recoverability of the asset using either a discounted income or cost savings model to calculate fair value. The calculated fair value is based upon, among other things, certain assumptions about expected future operating performance, internal and external processing costs, and an appropriate discount rate determined by management. Our estimates of discounted income may differ from actual income due to, among other things, inaccuracies in economic estimates (see Note 11 - Goodwill and Other Intangible Assets for more information about indefinite lived intangible assets). | |||
Valuation of Intangibles | Valuation of Intangibles: | ||
Valuation of our intangible assets other than goodwill is derived using a discounted income and cost savings approach. Financial information such as revenues, costs, assets and liabilities, and other assumptions related to the intangible asset are input into a standard valuation model to determine a stream of income attributable to that intangible. The income stream is then discounted to the present to arrive at a valuation. We perform annual impairment tests on our indefinite lived intangible assets. | |||
We have determined that our customer relationships have lives between 10 and 40 year based on the specific type of relationship. The valuation of our contractual customer relationships was derived using a discounted income approach valuation model. These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may be less than its undiscounted estimated future cash flows (see Note 11 - Goodwill and Other Intangible Assets for more information about our intangible assets other than goodwill). | |||
Share Repurchases | Share Repurchases: | ||
Purchase price over par value for share repurchases are allocated to retained earnings. | |||
Income Taxes | Income Taxes: | ||
Deferred income tax assets and liabilities are determined based on the differences between the financial statement and income tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Interest and penalties accrued related to unrecognized tax benefits are recognized as a component of income tax expense. | |||
Accounts Receivable | Accounts Receivable: | ||
Accounts receivable consist of amounts due to us from our normal business activities and are carried at their estimated collectible amounts. Our accounts receivable balance includes amounts related to VAT and similar international pass-through taxes. We do not require collateral as part of our standard trade credit policy. Accounts receivable balances are determined to be past due when the amount is overdue based on the contractual terms with the customer. We maintain an allowance for doubtful accounts to reflect the expected uncollectibility of accounts receivable based on past collection history and specific risks identified among uncollected accounts. Accounts receivable are written off against the allowance for doubtful accounts when we have determined that the receivable will not be collected and/or when the account has been referred to a third party collection agency. No single customer accounts for more than approximately 1% of our accounts receivable. Bad debt expense was $9.9 million, $4.8 million and $4.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||
Environmental Remediation Liabilities | Environmental Remediation Liabilities: | ||
We record a liability for environmental remediation when such liability becomes probable and the costs or damages can be reasonably estimated. We accrue environmental remediation costs, on an undiscounted basis, associated with identified sites where an assessment has indicated that cleanup costs are probable and can be reasonably estimated, but the timing of such payments is not fixed and determinable. Such accruals are based on currently available information, estimated timing of remedial actions, existing technology, and enacted laws and regulations. | |||
Financial Instruments | Financial Instruments: | ||
Our financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable and payable and long-term debt. At December 31, 2014, the fair value of the Company’s debt obligations was estimated at $1.67 billion, compared to a carrying amount of $1.66 billion. This fair value was estimated using market interest rates for comparable instruments. The Company has no current plans to retire a significant amount of its debt prior to maturity. Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of accounts receivable. Credit risk on trade receivables is minimized as a result of the large size of our customer base. No single customer represents greater than approximately 1% of total accounts receivable. We perform ongoing credit evaluation of our customers and maintain allowances for potential credit losses. For any contracts in loss positions, losses are recorded when probable and estimable. These losses, when incurred, have been within the range of our expectations. | |||
Use of Estimates | Use of Estimates: | ||
The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Some areas where we make estimates include allowance for doubtful accounts, credit memo reserve, accrued employee health and welfare benefits, stock compensation expense, income tax liabilities, accrued auto and workers’ compensation insurance claims, and intangible asset valuations. Such estimates are based on historical trends and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from our estimates. | |||
Future estimated expenses may fluctuate depending on changes in foreign currency rates. The estimates for payments due on long-term debt, lease payments under capital leases, accrued liabilities, contingent consideration liabilities, intangible assets amortization expense, and rental payments are based upon foreign exchange rates at December 31, 2014. | |||
Stock-Based Compensation | Stock-Based Compensation: | ||
We recognize compensation expense for all stock-based awards made to our employees and directors. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized over the vesting period. Determining the fair value of stock-based awards at the grant date requires considerable judgment, including estimating expected volatility of our stock, expected term of the award, and the risk-free interest rate. Our stock’s expected volatility is based upon historical experience. The expected term of options granted is based on historical experience. The risk-free interest rate assumption is based upon the U.S. Treasury yield rates for a comparable period. If factors change and we employ different assumptions, stock-based compensation expense for new grants may differ significantly from what we have recorded in the past. | |||
Foreign Currency Translation | Foreign Currency Translation: | ||
Assets and liabilities of foreign affiliates that use the local currency as their functional currency are translated at the exchange rate on the last day of the accounting period, and income statement accounts are translated at the average rates during the period. Related translation adjustments are reported as a component of accumulated other comprehensive loss in Stericycle, Inc.'s equity. | |||
New Accounting Standards | Accounting Standards Recently Adopted | ||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |||
On January 1, 2014, we adopted 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. We are applying this guidance on a prospective basis. The implementation of this guidance did not affect our results of operations or financial liquidity. | |||
Accounting Standards Issued But Not Yet Adopted | |||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |||
In April 2014, the Financial Accounting Standards Board ("FASB") issued guidance that changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or is classified as held for sale and "represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results." For disposals of individually significant components that do not qualify as discontinued operations, an entity must disclose pre-tax earnings of the disposed component. For public business entities, this guidance is effective prospectively for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company has no plans to dispose of a component of our entity and therefore does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations. | |||
Revenue From Contracts With Customers | |||
In May 2014, the FASB issued guidance to provide a single, comprehensive revenue recognition model for all contracts with customers. The revenue guidance contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016 for public entities, with no early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on its internal processes, operating results, and financial reporting. The impact is currently not known or reasonably estimable. | |||
Accounting for Share-Based Payment When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period | |||
In June 2014, the FASB issued guidance that applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. It requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and follows existing accounting guidance for the treatment of performance conditions. The standard will be effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The Company does not have any share-based payments with a performance target and therefore does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Estimated Useful Lives of Assets | Depreciation and amortization, which include the depreciation of assets recorded under capital leases, are computed using the straight-line method over the estimated useful lives of the assets as follows: | ||
Building and improvements | 5 to 50 years | ||
Machinery and equipment | 3 to 30 years | ||
Containers | 2 to 20 years | ||
Vehicles | 2 to 7 years | ||
Office equipment and furniture | 2 to 15 years | ||
Software | 2 to 7 years |
ACQUISITIONS_AND_DIVESTITURES_
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Combinations [Abstract] | ||||||||||||
Summary of Location of Acquisitions | The following table summarizes the locations of our acquisitions for the years ended December 31, twelve months ended December 31, 2014, 2013 and 2012: | |||||||||||
Acquisition Locations | 2014 | 2013 | 2012 | |||||||||
United States | 17 | 13 | 17 | |||||||||
Argentina | 2 | 3 | 1 | |||||||||
Brazil | 3 | 2 | 1 | |||||||||
Canada | 2 | 3 | — | |||||||||
Chile | 3 | 1 | 3 | |||||||||
Japan | 2 | 3 | 1 | |||||||||
Mexico | — | 1 | 2 | |||||||||
Portugal | 5 | 2 | 1 | |||||||||
Romania | 3 | 6 | 2 | |||||||||
Republic of Korea | 1 | — | — | |||||||||
Spain | 3 | 3 | 8 | |||||||||
United Kingdom | 3 | 12 | 5 | |||||||||
Total | 44 | 49 | 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 years ended December 31, 2014, 2013 and 2012: | |||||||||||
In thousands | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash | $ | 374,321 | $ | 161,936 | $ | 224,367 | ||||||
Promissory notes | 125,229 | 64,581 | 70,670 | |||||||||
Deferred consideration | 3,535 | 31,149 | 17,681 | |||||||||
Contingent consideration | 17,174 | 4,371 | 9,190 | |||||||||
Total purchase price | $ | 520,259 | $ | 262,037 | $ | 321,908 | ||||||
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 years ended December 31, 2014, 2013 and 2012: | |||||||||||
In thousands | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Fixed assets | $ | 98,916 | $ | 15,582 | $ | 30,426 | ||||||
Intangibles | 276,798 | 92,398 | 150,149 | |||||||||
Goodwill | 235,597 | 179,795 | 147,156 | |||||||||
Accounts receivable | 68,019 | 19,920 | 26,656 | |||||||||
Accounts payable | (37,021 | ) | (8,910 | ) | (7,423 | ) | ||||||
Environmental remediation liabilities | (32,383 | ) | — | — | ||||||||
Net other (liabilities)/ assets | (42,015 | ) | (11,030 | ) | 3,869 | |||||||
Debt | (22,102 | ) | (7,512 | ) | (4,353 | ) | ||||||
Net deferred tax liabilities | (18,769 | ) | (13,995 | ) | (20,186 | ) | ||||||
Noncontrolling interests | (6,781 | ) | (4,211 | ) | (4,386 | ) | ||||||
Total purchase price allocation | $ | 520,259 | $ | 262,037 | $ | 321,908 | ||||||
Pro Forma Information | The following consolidated pro forma information on the impact of the 2014 acquisitions to our consolidated revenues is based on the assumption that these acquisitions all occurred on January 1, 2013: | |||||||||||
In thousands | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Revenues | $ | 2,700,614 | $ | 2,507,314 | ||||||||
Net income | 331,330 | 317,609 | ||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
In thousands | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Total as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2014 | Inputs | Inputs | Inputs | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 22,236 | $ | 22,236 | $ | — | $ | — | ||||||||
Short-term investments | 380 | 380 | — | — | ||||||||||||
Derivative financial instruments | 515 | — | 515 | — | ||||||||||||
Total assets | $ | 23,131 | $ | 22,616 | $ | 515 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 19,941 | $ | — | $ | — | $ | 19,941 | ||||||||
Derivative financial instruments | $ | 2,408 | $ | — | $ | 2,408 | $ | — | ||||||||
Total liabilities | $ | 22,349 | $ | — | $ | 2,408 | $ | 19,941 | ||||||||
In thousands | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Total as of | Level 1 | Level 2 | Level 3 | |||||||||||||
December 31, 2013 | Inputs | Inputs | Inputs | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 67,167 | $ | 67,167 | $ | — | $ | — | ||||||||
Short-term investments | 413 | 413 | — | — | ||||||||||||
Total assets | $ | 67,580 | $ | 67,580 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 12,527 | $ | — | $ | — | $ | 12,527 | ||||||||
Total liabilities | $ | 12,527 | $ | — | $ | — | $ | 12,527 | ||||||||
Changes to Contingent Consideration | Changes to contingent consideration are reflected in the table below: | |||||||||||||||
In thousands | ||||||||||||||||
Contingent consideration at January 1, 2014 | $ | 12,527 | ||||||||||||||
Increases due to acquisitions | 17,174 | |||||||||||||||
Decrease due to change in noncontrolling interests | (4,379 | ) | ||||||||||||||
Decrease due to payments | (2,737 | ) | ||||||||||||||
Changes due to foreign currency fluctuations | (1,192 | ) | ||||||||||||||
Changes in fair value reflected in Selling, general, and administrative expenses | (1,452 | ) | ||||||||||||||
Contingent consideration at December 31, 2014 | $ | 19,941 | ||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
United States and International Components of Income Before Income Taxes | The U.S. and International components of income before income taxes consisted of the following for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
In thousands | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 441,029 | $ | 407,315 | $ | 357,076 | |||||||
Foreign | 46,539 | 70,431 | 60,121 | ||||||||||
Total income before income taxes | $ | 487,568 | $ | 477,746 | $ | 417,197 | |||||||
Significant Components of Income Tax Expense | Significant components of our income tax expense for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||
In thousands | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current | |||||||||||||
United States - federal | $ | 118,217 | $ | 103,751 | $ | 95,864 | |||||||
United States - state and local | 13,023 | 11,683 | 14,034 | ||||||||||
Foreign | 14,930 | 24,486 | 17,192 | ||||||||||
146,170 | 139,920 | 127,090 | |||||||||||
Deferred | |||||||||||||
United States - federal | 29,730 | 31,808 | 25,028 | ||||||||||
United States - state and local | 948 | 5,510 | 3,881 | ||||||||||
Foreign | (15,339 | ) | (10,246 | ) | (8,743 | ) | |||||||
Foreign - changes in statutory rates | (2,087 | ) | (2,330 | ) | — | ||||||||
13,252 | 24,742 | 20,166 | |||||||||||
Total provision | $ | 159,422 | $ | 164,662 | $ | 147,256 | |||||||
Reconciliation of Income Tax Provision Computed at Federal Statutory Rate to Effective Tax Rate | A reconciliation of the income tax provision computed at the federal statutory rate to the effective tax rate for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Effect of: | |||||||||||||
State and local taxes, net of federal tax effect | 1.9 | % | 2.3 | % | 2.9 | % | |||||||
Foreign tax rates | (0.5 | )% | (0.8 | )% | (1.2 | )% | |||||||
Change in deferred tax assets from an increase in tax basis of foreign assets | (1.8 | )% | — | % | — | % | |||||||
Other | (1.9 | )% | (2.0 | )% | (1.4 | )% | |||||||
Effective tax rate | 32.7 | % | 34.5 | % | 35.3 | % | |||||||
Deferred Tax Liabilities and Assets | Our deferred tax liabilities and assets at December 31, 2014 and 2013 were as follows: | ||||||||||||
In thousands | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | $ | (41,071 | ) | $ | (43,280 | ) | |||||||
Goodwill and intangibles | (453,854 | ) | (387,942 | ) | |||||||||
Total deferred tax liabilities | (494,925 | ) | (431,222 | ) | |||||||||
Deferred tax assets: | |||||||||||||
Accrued liabilities | 32,664 | 20,415 | |||||||||||
Stock based compensation | 21,139 | 20,361 | |||||||||||
Other | 17,922 | 5,264 | |||||||||||
Net operating tax loss carry-forwards | 20,017 | 8,097 | |||||||||||
Less: valuation allowance | (56 | ) | (1,122 | ) | |||||||||
Total deferred tax assets | 91,686 | 53,015 | |||||||||||
Net deferred tax liabilities | $ | (403,239 | ) | $ | (378,207 | ) | |||||||
Changes in Unrecognized Tax Positions | The following table summarizes the changes in unrecognized tax positions during the years ended December 31, 2014 and 2013: | ||||||||||||
In thousands | |||||||||||||
Unrecognized tax positions at January 1, 2013 | $ | 16,104 | |||||||||||
Gross increases - tax positions in prior period | 267 | ||||||||||||
Gross decreases - tax positions in prior period | (1,129 | ) | |||||||||||
Gross increases - current period tax positions | 2,514 | ||||||||||||
Settlement | — | ||||||||||||
Lapse of statute of limitations | (2,846 | ) | |||||||||||
Unrecognized tax positions at December 31, 2013 | $ | 14,910 | |||||||||||
Gross increases - tax positions in prior period | 200 | ||||||||||||
Gross decreases - tax positions in prior period | (762 | ) | |||||||||||
Gross increases - current period tax positions | 3,081 | ||||||||||||
Settlement | (1,165 | ) | |||||||||||
Lapse of statute of limitations | (1,169 | ) | |||||||||||
Unrecognized tax positions at December 31, 2014 | $ | 15,095 | |||||||||||
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 Consolidated Statements of Income: | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Cost of revenues - stock option plan | $ | 52 | $ | 120 | $ | 136 | |||||||||||
Selling, general and administrative - stock option plan | 15,214 | 15,212 | 13,630 | ||||||||||||||
Selling, general and administrative - RSUs | 1,267 | 1,116 | 1,474 | ||||||||||||||
Selling, general and administrative - ESPP | 1,240 | 1,009 | 1,099 | ||||||||||||||
Total pre-tax expense | $ | 17,773 | $ | 17,457 | $ | 16,339 | |||||||||||
Tax Benefits Related to Stock Compensation | The following table sets forth the tax benefits related to stock compensation: | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Tax benefit recognized in Statements of Income | $ | 4,849 | $ | 4,518 | $ | 5,818 | |||||||||||
Excess tax benefit realized | 17,906 | 17,153 | 30,161 | ||||||||||||||
Stock Option Activity | Stock option activity for the year ended December 31, 2014, is summarized as follows: | ||||||||||||||||
Number of | Weighted | ||||||||||||||||
Options | Average | ||||||||||||||||
Exercise | |||||||||||||||||
Price per | |||||||||||||||||
Share | |||||||||||||||||
Outstanding at beginning of year | 5,540,482 | $ | 70.29 | ||||||||||||||
Granted | 981,583 | 115.41 | |||||||||||||||
Exercised | (991,201 | ) | 53.49 | ||||||||||||||
Forfeited | (151,350 | ) | 96.43 | ||||||||||||||
Canceled or expired | (1,657 | ) | 80.96 | ||||||||||||||
Outstanding at December 31, 2014 | 5,377,857 | $ | 80.88 | ||||||||||||||
Exercisable at December 31, 2014 | 2,719,760 | $ | 65.54 | ||||||||||||||
Vested and expected to vest at December 31, 2014 | 5,176,959 | $ | 80.02 | ||||||||||||||
Intrinsic Value of Options Exercised | The following table sets forth the total intrinsic value of options exercised for the years ended December 31: | ||||||||||||||||
In thousands | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Total exercise intrinsic value of options exercised | $ | 65,884 | $ | 55,757 | $ | 97,816 | |||||||||||
Information Related to Outstanding and Exercisable Options | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Weighted average remaining contractual life of outstanding options (in years) | 6.1 | 6.6 | 6.7 | ||||||||||||||
Total aggregate intrinsic value of outstanding options (in thousands) | $ | 269,900 | $ | 254,200 | $ | 175,200 | |||||||||||
Weighted average remaining contractual life of exercisable options (in years) | 5.1 | 5.3 | 5.5 | ||||||||||||||
Total aggregate intrinsic value of exercisable options (in thousands) | $ | 178,300 | $ | 161,100 | $ | 114,500 | |||||||||||
Options Outstanding and Exercisable by Price Range | Options outstanding and exercisable at December 31, 2014 by price range are presented below: | ||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise Price | Shares | Outstanding Average Remaining Life in Years | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||
$22.90 - $46.83 | 663,353 | 3.03 | $ | 41.99 | 659,353 | $ | 42.06 | ||||||||||
$46.87 - $51.20 | 72,225 | 4.34 | 49.7 | 68,225 | 49.61 | ||||||||||||
$51.55 - $51.55 | 539,334 | 5.1 | 51.55 | 380,195 | 51.55 | ||||||||||||
$51.75 - $83.88 | 550,039 | 3.95 | 57.71 | 524,647 | 57.16 | ||||||||||||
$83.95 - $84.91 | 48,731 | 7.34 | 84.01 | 43,081 | 83.96 | ||||||||||||
$85.00 - $85.00 | 614,657 | 6.1 | 85 | 327,701 | 85 | ||||||||||||
$85.02 - $86.02 | 11,450 | 7.18 | 85.44 | 3,300 | 85.32 | ||||||||||||
$86.24 - $86.24 | 801,630 | 7.12 | 86.24 | 317,562 | 86.24 | ||||||||||||
$86.83 - $95.03 | 179,092 | 6.83 | 90.13 | 124,033 | 89.22 | ||||||||||||
$95.87 - $132.95 | 1,897,346 | 7.73 | 106.15 | 271,663 | 100.63 | ||||||||||||
$22.90 - $132.95 | 5,377,857 | 6.14 | $ | 80.88 | 2,719,760 | $ | 65.54 | ||||||||||
Assumptions used in Black-Scholes Model | The estimated fair value of stock options at the time of the grant using the Black-Scholes model option pricing model was as follows: | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Stock options granted (shares) | 981,583 | 1,057,630 | 1,142,205 | ||||||||||||||
Weighted average fair value at grant date | $ | 21.31 | $ | 22.02 | $ | 20.14 | |||||||||||
Assumptions: | |||||||||||||||||
Expected term (in years) | 4.76 | 5.81 | 6 | ||||||||||||||
Expected volatility | 17.23 | % | 27.03 | % | 27.87 | % | |||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||
Risk free interest rate | 1.53 | % | 1 | % | 1.05 | % | |||||||||||
Information Related to RSUs | The following table sets forth the information related to RSUs for the years ended December 31: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Total aggregate intrinsic value of outstanding units (in thousands) | $ | 8,337 | $ | 8,185 | $ | 6,362 | |||||||||||
Per share fair value of units granted | 115.67 | 96.4 | 86.24 | ||||||||||||||
Restricted Stock Units Activity | A summary of the status of our non-vested RSUs and changes during the year ended December 31, 2014, are as follows: | ||||||||||||||||
Number of | Weighted Average Grant Date Fair Value | ||||||||||||||||
Units | |||||||||||||||||
Non-vested at beginning of year | 70,457 | $ | 88.32 | ||||||||||||||
Granted | 16,334 | 115.67 | |||||||||||||||
Vested and released | (17,288 | ) | 85 | ||||||||||||||
Forfeited | (5,903 | ) | 90.53 | ||||||||||||||
Non-vested at December 31, 2014 | 63,600 | $ | 96.04 | ||||||||||||||
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per share: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator: | |||||||||||||
Numerator for basic earnings per share net income attributable to Stericycle, Inc. | $ | 326,456 | $ | 311,372 | $ | 267,996 | |||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share-weighted average shares | 84,932,792 | 85,902,550 | 85,401,365 | ||||||||||
Effect of diluted securities: | |||||||||||||
Employee stock options | 1,300,820 | 1,489,438 | 1,617,108 | ||||||||||
Denominator for diluted earnings per share-adjusted weighted average shares and after assumed exercises | 86,233,612 | 87,391,988 | 87,018,473 | ||||||||||
Earnings per share – Basic | $ | 3.84 | $ | 3.62 | $ | 3.14 | |||||||
Earnings per share – Diluted | $ | 3.79 | $ | 3.56 | $ | 3.08 | |||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Components of Total Comprehensive Income | The following table sets forth the changes in the components of accumulated other comprehensive income for 2014, 2013 and 2012: | ||||||||||||
In thousands | |||||||||||||
Currency Translation Adjustments | Unrealized Gains (Losses) on Cash Flow Hedges | Accumulated Other Comprehensive Income/ (Loss) | |||||||||||
Beginning balance at January 1, 2012 | $ | (43,584 | ) | $ | (2,400 | ) | $ | (45,984 | ) | ||||
Period change | 6,292 | 628 | 6,920 | ||||||||||
Ending balance at December 31, 2012 | $ | (37,292 | ) | $ | (1,772 | ) | $ | (39,064 | ) | ||||
Period change | (17,718 | ) | 314 | (17,404 | ) | ||||||||
Ending balance at December 31, 2013 | $ | (55,010 | ) | $ | (1,458 | ) | $ | (56,468 | ) | ||||
Period change | (80,221 | ) | (1,730 | ) | (81,951 | ) | |||||||
Ending balance at December 31, 2014 | $ | (135,231 | ) | $ | (3,188 | ) | $ | (138,419 | ) |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | Property, plant and equipment at December 31, 2014 and 2013 consisted of the following items: | ||||||||
In thousands | |||||||||
2014 | 2013 | ||||||||
Land and improvements | $ | 63,600 | $ | 26,818 | |||||
Building and improvements | 142,680 | 113,740 | |||||||
Machinery and equipment | 250,684 | 214,324 | |||||||
Vehicles | 56,650 | 46,579 | |||||||
Containers | 155,238 | 145,273 | |||||||
Office equipment and furniture | 80,158 | 68,005 | |||||||
Software | 40,291 | 25,676 | |||||||
Construction in progress | 35,231 | 41,583 | |||||||
Total property, plant & equipment | 824,532 | 681,998 | |||||||
Less: accumulated depreciation | (364,124 | ) | (323,031 | ) | |||||
Property, plant and equipment, net | $ | 460,408 | $ | 358,967 | |||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill since January 1, 2013, by reportable segment, were as follows: | |||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||
United States | International | Total | ||||||||||||||||||||||
Balance at January 1, 2013 | $ | 1,616,286 | $ | 448,817 | $ | 2,065,103 | ||||||||||||||||||
Goodwill acquired during year | 57,250 | 116,534 | 173,784 | |||||||||||||||||||||
Purchase accounting allocation adjustments | 4,541 | 1,470 | 6,011 | |||||||||||||||||||||
Changes due to foreign currency fluctuations | — | (13,316 | ) | (13,316 | ) | |||||||||||||||||||
Balance at December 31, 2013 | 1,678,077 | 553,505 | 2,231,582 | |||||||||||||||||||||
Goodwill acquired during year | 169,754 | 88,263 | 258,017 | |||||||||||||||||||||
Purchase accounting allocation adjustments | (4,825 | ) | (17,595 | ) | (22,420 | ) | ||||||||||||||||||
Changes due to foreign currency fluctuations | — | (48,347 | ) | (48,347 | ) | |||||||||||||||||||
Balance at December 31, 2014 | $ | 1,843,006 | $ | 575,826 | $ | 2,418,832 | ||||||||||||||||||
Values of Intangible Assets | At December 31, 2014 and 2013, the values of other intangible assets were as follows: | |||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Amortizable intangibles: | ||||||||||||||||||||||||
Covenants not-to-compete | $ | 8,474 | $ | 5,688 | $ | 2,786 | $ | 9,405 | $ | 5,366 | $ | 4,039 | ||||||||||||
Customer relationships | 755,148 | 107,365 | 647,783 | 670,889 | 81,271 | 589,618 | ||||||||||||||||||
Trade names | 6,062 | 1,313 | 4,749 | 5,283 | 1,031 | 4,252 | ||||||||||||||||||
Technology | 611 | 521 | 90 | 611 | 416 | 195 | ||||||||||||||||||
Other | 539 | 35 | 504 | 91 | 14 | 77 | ||||||||||||||||||
Indefinite lived intangibles: | ||||||||||||||||||||||||
Operating permits | 247,933 | — | 247,933 | 116,054 | — | 116,054 | ||||||||||||||||||
Trade names | 5,800 | — | 5,800 | 5,800 | — | 5,800 | ||||||||||||||||||
Total | $ | 1,024,567 | $ | 114,922 | $ | 909,645 | $ | 808,133 | $ | 88,098 | $ | 720,035 | ||||||||||||
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 | ||||||||||||||||||||||||
2015 | $ | 34,431 | ||||||||||||||||||||||
2016 | 34,091 | |||||||||||||||||||||||
2017 | 33,946 | |||||||||||||||||||||||
2018 | 33,891 | |||||||||||||||||||||||
2019 | 33,870 | |||||||||||||||||||||||
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Liabilities | Accrued liabilities at December 31, 2014 and 2013 consisted of the following items: | ||||||||
In thousands | |||||||||
2014 | 2013 | ||||||||
Accrued compensation | $ | 37,932 | $ | 36,210 | |||||
Accrued insurance | 40,387 | 29,363 | |||||||
Accrued taxes | 17,847 | 19,538 | |||||||
Accrued interest | 9,096 | 8,593 | |||||||
Accrued professional services liabilities | 3,703 | 3,097 | |||||||
Accrued liabilities - other | 22,778 | 10,644 | |||||||
Total accrued liabilities | $ | 131,743 | $ | 107,445 | |||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | Long-term debt consisted of the following at December 31: | ||||||||
In thousands | |||||||||
2014 | 2013 | ||||||||
Obligations under capital leases | $ | 9,185 | $ | 7,343 | |||||
$1.2 billion senior credit facility weighted average rate 1.50%, due in 2019 | 459,975 | 272,358 | |||||||
$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 | |||||||
Promissory notes and deferred consideration weighted average rate of 4.07% and weighted average maturity of 3.5 years | 279,590 | 252,195 | |||||||
Foreign bank debt weighted average rate 9.48% and weighted average maturity of 1.8 years | 160,465 | 149,147 | |||||||
Total debt | 1,659,215 | 1,431,043 | |||||||
Less: current portion of total debt | 131,969 | 150,380 | |||||||
Long-term portion of total debt | $ | 1,527,246 | $ | 1,280,663 | |||||
Payments due on Long-Term Debt, Excluding Capital Lease Obligations | Payments due on long-term debt, excluding capital lease obligations, during each of the five years subsequent to December 31, 2014 are as follows: | ||||||||
In thousands | |||||||||
2015 | $ | 128,339 | |||||||
2016 | 253,245 | ||||||||
2017 | 263,010 | ||||||||
2018 | 33,907 | ||||||||
2019 | 601,527 | ||||||||
Thereafter | 370,002 | ||||||||
$ | 1,650,030 | ||||||||
Property under Capital Leases Included with Property, Plant and Equipment | Property under capital leases included with property, plant and equipment in the accompanying consolidated balance sheets is as follows at December 31: | ||||||||
In thousands | |||||||||
2014 | 2013 | ||||||||
Land | $ | 174 | $ | 198 | |||||
Buildings | 896 | 550 | |||||||
Machinery and equipment | 1,230 | 2,262 | |||||||
Vehicles | 13,108 | 10,530 | |||||||
Less: accumulated depreciation | (5,375 | ) | (3,905 | ) | |||||
$ | 10,033 | $ | 9,635 | ||||||
Minimum Future Lease Payments Under Capital Leases | Minimum future lease payments under capital leases are as follows: | ||||||||
In thousands | |||||||||
2015 | $ | 4,788 | |||||||
2016 | 3,379 | ||||||||
2017 | 2,664 | ||||||||
2018 | 90 | ||||||||
2019 | 62 | ||||||||
Thereafter | 453 | ||||||||
Total minimum lease payments | 11,436 | ||||||||
Less: amounts representing interest | (2,251 | ) | |||||||
Present value of net minimum lease payments | 9,185 | ||||||||
Less: current portion included in other current liabilities | (3,630 | ) | |||||||
Long-term obligations under capital leases | $ | 5,555 | |||||||
LEASE_COMMITMENTS_Tables
LEASE COMMITMENTS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Minimum Future Rental Payments under Non-Cancelable Operating Leases | Minimum future rental payments under non-cancelable operating leases that have initial or remaining terms in excess of one year at December 31, 2014 for each of the next five years and in the aggregate are as follows: | ||||
In thousands | |||||
2015 | $ | 81,926 | |||
2016 | 69,069 | ||||
2017 | 59,864 | ||||
2018 | 45,680 | ||||
2019 | 34,728 | ||||
Thereafter | 44,098 | ||||
$ | 335,365 | ||||
PRODUCTS_AND_SERVICES_AND_GEOG1
PRODUCTS AND SERVICES AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Summary Information for Reportable Segments | Summary information for our reportable segments is as follows: | ||||||||||||
In thousands | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues: | |||||||||||||
United States | $ | 1,796,796 | $ | 1,506,587 | $ | 1,370,806 | |||||||
International: | |||||||||||||
Europe | 407,082 | 341,387 | 301,615 | ||||||||||
Other international countries | 351,723 | 294,833 | 240,728 | ||||||||||
Total International | 758,805 | 636,220 | 542,343 | ||||||||||
Total | $ | 2,555,601 | $ | 2,142,807 | $ | 1,913,149 | |||||||
Income before income taxes: | |||||||||||||
United States | $ | 436,229 | $ | 404,620 | $ | 359,748 | |||||||
International | 51,339 | 73,126 | 57,449 | ||||||||||
Total | $ | 487,568 | $ | 477,746 | $ | 417,197 | |||||||
Total assets: | |||||||||||||
United States | $ | 3,008,547 | $ | 2,541,323 | $ | 2,427,297 | |||||||
International | 1,393,175 | 1,346,650 | 1,119,441 | ||||||||||
Total | $ | 4,401,722 | $ | 3,887,973 | $ | 3,546,738 | |||||||
Property, Plant and Equipment, net: | |||||||||||||
United States | $ | 297,558 | $ | 214,810 | $ | 207,387 | |||||||
International: | |||||||||||||
Europe | 70,621 | 74,915 | 64,690 | ||||||||||
Other international countries | 92,229 | 69,242 | 63,793 | ||||||||||
Total International | 162,850 | 144,157 | 128,483 | ||||||||||
Total | $ | 460,408 | $ | 358,967 | $ | 335,870 | |||||||
Detailed Information for Reportable Segment | Detailed information for our United States reportable segment is as follows: | ||||||||||||
In thousands | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Regulated and compliance solutions | $ | 1,715,437 | $ | 1,408,812 | $ | 1,254,486 | |||||||
Recall and returns solutions | 81,359 | 97,775 | 116,320 | ||||||||||
Total revenue | $ | 1,796,796 | $ | 1,506,587 | $ | 1,370,806 | |||||||
Net interest expense | 44,926 | 43,131 | 41,084 | ||||||||||
Income before income taxes | 436,229 | 404,620 | 359,748 | ||||||||||
Income taxes | 161,672 | 152,874 | 138,807 | ||||||||||
Net income attributable to Stericycle, Inc. | $ | 274,557 | $ | 251,746 | $ | 220,941 | |||||||
Depreciation and amortization | $ | 59,888 | $ | 50,166 | $ | 45,234 | |||||||
Capital expenditures | 57,019 | 43,442 | 38,528 | ||||||||||
Detailed information for our International reportable segment is as follows: | |||||||||||||
In thousands | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Regulated and compliance solutions | $ | 758,805 | $ | 636,220 | $ | 542,343 | |||||||
Net interest expense | 21,096 | 11,818 | 10,186 | ||||||||||
Income before income taxes | 51,339 | 73,126 | 57,449 | ||||||||||
Income taxes | (2,250 | ) | 11,788 | 8,449 | |||||||||
Net income | 53,589 | 61,338 | 49,000 | ||||||||||
Less: net income attributable to noncontrolling interests | 1,690 | 1,712 | 1,945 | ||||||||||
Net income attributable to Stericycle, Inc. | $ | 51,899 | $ | 59,626 | $ | 47,055 | |||||||
Depreciation and amortization | $ | 44,728 | $ | 38,242 | $ | 31,049 | |||||||
Capital expenditures | 29,477 | 29,667 | 26,708 | ||||||||||
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Summary of Unaudited Consolidated Quarterly Results of Operations | The following table summarizes our unaudited consolidated quarterly results of operations as reported for 2014 and 2013: | ||||||||||||||||||||
In thousands, except per share data | |||||||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | 2014 | |||||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||||||
Revenues | $ | 569,955 | $ | 640,822 | $ | 667,877 | $ | 676,947 | $ | 2,555,601 | |||||||||||
Gross profit | 255,469 | 275,304 | 278,669 | 284,969 | 1,094,411 | ||||||||||||||||
Acquisition expenses | (3,221 | ) | (3,979 | ) | (3,472 | ) | (2,661 | ) | (13,333 | ) | |||||||||||
Integration expenses | (2,485 | ) | (4,679 | ) | (7,461 | ) | (11,343 | ) | (25,968 | ) | |||||||||||
Change in fair value of contingent consideration | (4,789 | ) | 836 | — | 5,405 | 1,452 | |||||||||||||||
Plant conversion and restructuring expenses | (574 | ) | (1,115 | ) | (2,380 | ) | (10,495 | ) | (14,564 | ) | |||||||||||
Litigation expenses | (1,505 | ) | (396 | ) | (1,342 | ) | (3,331 | ) | (6,574 | ) | |||||||||||
Net income attributable to Stericycle, Inc. | 79,149 | 81,936 | 82,845 | 82,526 | 326,456 | ||||||||||||||||
* Basic earnings per common share | $ | 0.93 | $ | 0.97 | $ | 0.98 | $ | 0.97 | $ | 3.84 | |||||||||||
* Diluted earnings per common share | $ | 0.91 | $ | 0.95 | $ | 0.96 | $ | 0.96 | $ | 3.79 | |||||||||||
In thousands, except per share data | |||||||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | 2013 | |||||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||||||
Revenues | $ | 513,804 | $ | 526,525 | $ | 534,579 | $ | 567,899 | $ | 2,142,807 | |||||||||||
Gross profit | 232,094 | 237,852 | 241,403 | 253,285 | 964,634 | ||||||||||||||||
Acquisition expenses | (1,803 | ) | (2,324 | ) | (2,111 | ) | (4,037 | ) | (10,275 | ) | |||||||||||
Integration expenses | (896 | ) | (1,383 | ) | (1,423 | ) | (2,819 | ) | (6,521 | ) | |||||||||||
Change in fair value of contingent consideration | — | 122 | 185 | 1,971 | 2,278 | ||||||||||||||||
Restructuring costs and plant closure expense | — | (104 | ) | (787 | ) | (2,012 | ) | (2,903 | ) | ||||||||||||
Impairment of intangible assets | — | — | — | (1,405 | ) | (1,405 | ) | ||||||||||||||
Litigation settlement | (106 | ) | 2 | (12 | ) | (2,120 | ) | (2,236 | ) | ||||||||||||
Net income attributable to Stericycle, Inc. | 74,617 | 78,044 | 80,547 | 78,164 | 311,372 | ||||||||||||||||
* Basic earnings per common share | $ | 0.87 | $ | 0.91 | $ | 0.94 | $ | 0.91 | $ | 3.62 | |||||||||||
* Diluted earnings per common share | $ | 0.85 | $ | 0.89 | $ | 0.92 | $ | 0.9 | $ | 3.56 | |||||||||||
* | EPS calculated on a quarterly basis, and, as such, the amounts may not total the calculated full-year EPS. |
DESCRIPTION_OF_BUSINESS_Detail
DESCRIPTION OF BUSINESS (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Customer | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of customers - over | 600,000 | |||
Increase in cash and cash equivalents | $22,236 | $67,167 | $34,660 | $22,511 |
Increase in other current liabilities | 61,599 | 50,387 | ||
Reclassifications, Other [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Increase in cash and cash equivalents | 5,200 | |||
Increase in other current liabilities | $5,200 | |||
United States | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of employees | 9,969 | |||
International [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of employees | 8,687 | |||
Workforce Subject to Collective Bargaining Arrangements [Member] | United States | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of employees | 456 | |||
Workforce Subject to Collective Bargaining Arrangements [Member] | International [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of employees | 2,209 | |||
Processing Facilities [Member] | United States | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of processing facilities | 64 | |||
Processing Facilities [Member] | International [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of processing facilities | 117 | |||
Transfer and Collection Sites [Member] | United States | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of sites | 137 | |||
Transfer and Collection Sites [Member] | International [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of sites | 77 | |||
Sales and Administrative Sites [Member] | United States | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of sites | 19 | |||
Sales and Administrative Sites [Member] | International [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of sites | 45 | |||
Other Service Facilities [Member] | United States | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of service facilities | 51 | |||
Other Service Facilities [Member] | International [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of service facilities | 46 | |||
Landfill [Member] | International [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||
Number of sites | 2 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||
Bad debt expense | $9,900,000 | $4,800,000 | $4,600,000 |
Debt obligations, carrying amount | 1,659,215,000 | 1,431,043,000 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Significant Accounting Policies [Line Items] | |||
Customer concentration risk percentage, no more than | 1.00% | ||
Customer relationships [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, weighted average remaining useful life in years | 23 years 9 months 18 days | ||
Customer relationships [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, useful life | 10 years | ||
Customer relationships [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, useful life | 40 years | ||
Covenants not-to-compete [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, weighted average remaining useful life in years | 4 years 8 months 12 days | ||
Covenants not-to-compete [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, useful life | 3 years | ||
Covenants not-to-compete [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, useful life | 14 years | ||
Trade names | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, weighted average remaining useful life in years | 15 years 9 months 18 days | ||
Trade names | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, useful life | 10 years | ||
Trade names | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, useful life | 40 years | ||
Technology | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, weighted average remaining useful life in years | 1 year | ||
Technology | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets, useful life | 5 years | ||
Building and improvements [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Building and improvements [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 50 years | ||
Machinery and equipment [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Machinery and equipment [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 30 years | ||
Containers [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, weighted average remaining useful life | 13 years 1 month 6 days | ||
Containers [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 2 years | ||
Containers [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Vehicles [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 2 years | ||
Vehicles [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Office equipment and furniture [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 2 years | ||
Office equipment and furniture [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 15 years | ||
Software [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 2 years | ||
Software [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Level 2 Inputs [Member] | |||
Significant Accounting Policies [Line Items] | |||
Debt obligations, fair value | $1,670,000,000 | $1,410,000,000 |
ACQUISITIONS_AND_DIVESTITURES_1
ACQUISITIONS AND DIVESTITURES - Summary of Acquisition Location (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Entity | Entity | Entity | |
Business Acquisition [Line Items] | |||
Number of acquisitions | 44 | 49 | 41 |
United States | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 17 | 13 | 17 |
Argentina | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 2 | 3 | 1 |
Brazil | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 3 | 2 | 1 |
Canada | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 2 | 3 | 0 |
Chile | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 3 | 1 | 3 |
Japan | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 2 | 3 | 1 |
Mexico | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 0 | 1 | 2 |
Portugal | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 5 | 2 | 1 |
Romania | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 3 | 6 | 2 |
Republic of Korea | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 1 | 0 | 0 |
Spain | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 3 | 3 | 8 |
United Kingdom | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 3 | 12 | 5 |
ACQUISITIONS_AND_DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - Aggregate Purchase Price Paid for Acquisitions and Other Adjustments to Consideration (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combinations [Abstract] | |||
Cash | $374,321 | $161,936 | $224,367 |
Promissory notes | 125,229 | 64,581 | 70,670 |
Deferred consideration | 3,535 | 31,149 | 17,681 |
Contingent consideration | 17,174 | 4,371 | 9,190 |
Total purchase price | $520,259 | $262,037 | $321,908 |
ACQUISITIONS_AND_DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES - Preliminary Purchase Price Allocation and Other Adjustments to Purchase Price Allocations (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | |||
Goodwill | $2,418,832 | $2,231,582 | $2,065,103 |
Series of Individually Immaterial Business Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Fixed assets | 98,916 | 15,582 | 30,426 |
Intangibles | 276,798 | 92,398 | 150,149 |
Goodwill | 235,597 | 179,795 | 147,156 |
Accounts receivable | 68,019 | 19,920 | 26,656 |
Accounts payable | -37,021 | -8,910 | -7,423 |
Environmental remediation liabilities | -32,383 | 0 | 0 |
Net other (liabilities)/ assets | -42,015 | -11,030 | 3,869 |
Debt | -22,102 | -7,512 | -4,353 |
Net deferred tax liabilities | -18,769 | -13,995 | -20,186 |
Noncontrolling interests | -6,781 | -4,211 | -4,386 |
Total purchase price allocation | $520,259 | $262,037 | $321,908 |
ACQUISITIONS_AND_DIVESTITURES_4
ACQUISITIONS AND DIVESTITURES - Pro Forma Information (Details) (Series of Individually Immaterial Business Acquisitions [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Revenues | $2,700,614 | $2,507,314 |
Net income | $331,330 | $317,609 |
ACQUISITIONS_AND_DIVESTITURES_5
ACQUISITIONS AND DIVESTITURES - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 22, 2014 | |
Entity | Entity | Entity | ||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 44 | 49 | 41 | |||||||||
Net increase in Goodwill | $235,600,000 | |||||||||||
Tax deductible Goodwill amount | 125,000,000 | 125,000,000 | ||||||||||
Acquisition related expenses | 2,661,000 | 3,472,000 | 3,979,000 | 3,221,000 | 4,037,000 | 2,111,000 | 2,324,000 | 1,803,000 | 13,333,000 | 10,275,000 | 7,900,000 | |
Total consideration | 520,259,000 | 262,037,000 | 321,908,000 | |||||||||
Consideration, cash paid | 374,321,000 | 161,936,000 | 224,367,000 | |||||||||
Consideration, note issued | 125,229,000 | 64,581,000 | 70,670,000 | |||||||||
Contingent consideration | 17,174,000 | 4,371,000 | 9,190,000 | |||||||||
Customer relationships | Minimum [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Finite-lived intangible assets, useful life | 10 years | |||||||||||
Customer relationships | Maximum [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Finite-lived intangible assets, useful life | 40 years | |||||||||||
Trade names | Minimum [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Finite-lived intangible assets, useful life | 10 years | |||||||||||
Trade names | Maximum [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Finite-lived intangible assets, useful life | 40 years | |||||||||||
United States | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 17 | 13 | 17 | |||||||||
Argentina | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 2 | 3 | 1 | |||||||||
Brazil | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 3 | 2 | 1 | |||||||||
Canada | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 2 | 3 | 0 | |||||||||
Chile | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 3 | 1 | 3 | |||||||||
Japan | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 2 | 3 | 1 | |||||||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | ||||||||||
Mexico | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 0 | 1 | 2 | |||||||||
Portugal | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 5 | 2 | 1 | |||||||||
Romania | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 3 | 6 | 2 | |||||||||
Republic of Korea | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 1 | 0 | 0 | |||||||||
Spain | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 3 | 3 | 8 | |||||||||
United Kingdom | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 3 | 12 | 5 | |||||||||
United States | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 17 | |||||||||||
Net increase in Goodwill | 164,900,000 | |||||||||||
United States | Recall and Returns Solutions [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 1 | |||||||||||
International [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 27 | |||||||||||
Net increase in Goodwill | 70,700,000 | |||||||||||
Acquisition One [Member] | United States | Regulated and Compliance Solutions [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 2 | |||||||||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | ||||||||||
Acquisition One [Member] | International [Member] | Regulated and Compliance Solutions [Member] | Argentina | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 2 | |||||||||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | ||||||||||
Acquisition One [Member] | International [Member] | Regulated and Compliance Solutions [Member] | Brazil | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 2 | |||||||||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | ||||||||||
Acquisition One [Member] | International [Member] | Regulated and Compliance Solutions [Member] | Chile | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 2 | |||||||||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | ||||||||||
Acquisition One [Member] | International [Member] | Regulated and Compliance Solutions [Member] | Japan | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 2 | |||||||||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | ||||||||||
Acquisition One [Member] | International [Member] | Regulated and Compliance Solutions [Member] | Portugal | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 5 | |||||||||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | ||||||||||
Acquisition One [Member] | International [Member] | Regulated and Compliance Solutions [Member] | Romania | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 2 | |||||||||||
Acquisition One [Member] | International [Member] | Regulated and Compliance Solutions [Member] | Republic of Korea | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 1 | |||||||||||
Business acquisition, ownership percentage acquired | 75.50% | 75.50% | ||||||||||
Acquisition One [Member] | International [Member] | Regulated and Compliance Solutions [Member] | Spain | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 1 | |||||||||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | ||||||||||
Acquisition One [Member] | International [Member] | Regulated and Compliance Solutions [Member] | United Kingdom | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 2 | |||||||||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | ||||||||||
Acquisition One [Member] | International [Member] | Communication Solutions [Member] | Canada | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 2 | |||||||||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | ||||||||||
Acquisition Two [Member] | United States | Regulated and Compliance Solutions [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 11 | |||||||||||
Acquisition Two [Member] | International [Member] | Regulated and Compliance Solutions [Member] | Brazil | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 1 | |||||||||||
Acquisition Two [Member] | International [Member] | Regulated and Compliance Solutions [Member] | Chile | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Business acquisition, ownership percentage acquired | 90.00% | 90.00% | ||||||||||
Acquisition Two [Member] | International [Member] | Regulated and Compliance Solutions [Member] | Romania | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | ||||||||||
Acquisition Two [Member] | International [Member] | Regulated and Compliance Solutions [Member] | Spain | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 2 | |||||||||||
Acquisition Three [Member] | United States | Communication Solutions [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Number of acquisitions | 3 | |||||||||||
Acquisitions Year 2014 [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Net increase in Intangible Assets | 276,800,000 | |||||||||||
Pro forma revenues from the aggregate acquisitions | 364,500,000 | |||||||||||
Impact to revenues of acquisitions | 219,500,000 | |||||||||||
Acquisitions Year 2014 [Member] | Operating permits | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Net increase in Intangible Assets | 158,100,000 | |||||||||||
Acquisitions Year 2014 [Member] | Customer relationships | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Net increase in Intangible Assets | 117,200,000 | |||||||||||
Acquisitions Year 2014 [Member] | Customer relationships | Minimum [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Finite-lived intangible assets, useful life | 10 years | |||||||||||
Acquisitions Year 2014 [Member] | Customer relationships | Maximum [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Finite-lived intangible assets, useful life | 40 years | |||||||||||
Acquisitions Year 2014 [Member] | Trade names | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Net increase in Intangible Assets | 1,200,000 | |||||||||||
Acquisitions Year 2014 [Member] | Trade names | Minimum [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Finite-lived intangible assets, useful life | 15 years | |||||||||||
Acquisitions Year 2014 [Member] | Trade names | Maximum [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Finite-lived intangible assets, useful life | 20 years | |||||||||||
Acquisitions Year 2014 [Member] | Other | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Net increase in Intangible Assets | 300,000 | |||||||||||
Acquisitions Year 2014 [Member] | Other | Minimum [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Finite-lived intangible assets, useful life | 10 years | |||||||||||
PSC Environmental Services, LLC | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Business acquisition, ownership percentage acquired | 100.00% | |||||||||||
Total consideration | 284,200,000 | |||||||||||
Consideration, cash paid | 248,200,000 | |||||||||||
Consideration, note issued | 30,000,000 | |||||||||||
Note term | 2 years | |||||||||||
Contingent consideration | 6,000,000 | |||||||||||
Liabilities assumed | 32,400,000 | |||||||||||
Shiraishi-Sogyo Co. Ltd. [Member] | ||||||||||||
Significant Acquisitions and Disposals [Line Items] | ||||||||||||
Business acquisition, ownership percentage acquired | 100.00% | |||||||||||
Note payable to Stericycle assumed | 15,700,000 | |||||||||||
Bank debt assumed | $4,700,000 |
FAIR_VALUE_MEASUREMENTS_Fair_V
FAIR VALUE MEASUREMENTS - Fair Value Measurements (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Cash and cash equivalents | $22,236 | $67,167 |
Short-term investments | 380 | 413 |
Derivative Asset | 515 | |
Total assets | 23,131 | 67,580 |
Liabilities: | ||
Contingent consideration | 19,941 | 12,527 |
Derivative Liability | 2,408 | |
Total liabilities | 22,349 | 12,527 |
Level 1 Inputs [Member] | ||
Assets: | ||
Cash and cash equivalents | 22,236 | 67,167 |
Short-term investments | 380 | 413 |
Derivative Asset | 0 | |
Total assets | 22,616 | 67,580 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Derivative Liability | 0 | |
Total liabilities | 0 | 0 |
Level 2 Inputs [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Derivative Asset | 515 | |
Total assets | 515 | 0 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Derivative Liability | 2,408 | |
Total liabilities | 2,408 | 0 |
Level 3 Inputs [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Derivative Asset | 0 | |
Total assets | 0 | 0 |
Liabilities: | ||
Contingent consideration | 19,941 | 12,527 |
Derivative Liability | 0 | |
Total liabilities | $19,941 | $12,527 |
FAIR_VALUE_MEASUREMENTS_Change
FAIR VALUE MEASUREMENTS - Changes to Contingent Consideration (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combination, Contingent Consideration, Liability [Roll Forward] | |||||||||||
Contingent consideration at January 1, 2014 | $12,527 | $12,527 | |||||||||
Increases due to acquisitions | 17,174 | 4,371 | 9,190 | ||||||||
Decrease due to change in noncontrolling interests | -4,379 | ||||||||||
Decrease due to payments | -2,737 | ||||||||||
Changes due to foreign currency fluctuations | -1,192 | ||||||||||
Changes in fair value reflected in Selling, general, and administrative expenses | -5,405 | 0 | -836 | 4,789 | -1,971 | -185 | -122 | 0 | -1,452 | -2,278 | 752 |
Contingent consideration at December 31, 2014 | $19,941 | $12,527 | $19,941 | $12,527 |
FAIR_VALUE_MEASUREMENTS_Additi
FAIR VALUE MEASUREMENTS - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | $515,000 | |
Derivative Liability | 2,408,000 | |
Contingent consideration liabilities | 19,941,000 | 12,527,000 |
Debt obligations, carrying amount | 1,659,215,000 | 1,431,043,000 |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maximum contingent liability if financial performance measures were fully met | 23,800,000 | |
Level 2 Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 515,000 | |
Derivative Liability | 2,408,000 | |
Contingent consideration liabilities | 0 | 0 |
Debt obligations, fair value | 1,670,000,000 | 1,410,000,000 |
Level 3 Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | |
Derivative Liability | 0 | |
Contingent consideration liabilities | 19,941,000 | 12,527,000 |
Current Liabilities [Member] | Level 3 Inputs [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Contingent consideration liabilities | $7,900,000 |
INCOME_TAXES_United_States_and
INCOME TAXES - United States and International Components of Income before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
United States | $441,029 | $407,315 | $357,076 |
Foreign | 46,539 | 70,431 | 60,121 |
Income Before Income Taxes | $487,568 | $477,746 | $417,197 |
INCOME_TAXES_Significant_Compo
INCOME TAXES - Significant Components of Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||
United States - federal | $118,217 | $103,751 | $95,864 |
United States - state and local | 13,023 | 11,683 | 14,034 |
Foreign | 14,930 | 24,486 | 17,192 |
Current income tax expense | 146,170 | 139,920 | 127,090 |
Deferred | |||
United States - federal | 29,730 | 31,808 | 25,028 |
United States - state and local | 948 | 5,510 | 3,881 |
Foreign | -15,339 | -10,246 | -8,743 |
Foreign - changes in statutory rates | -2,087 | -2,330 | 0 |
Deferred income tax expense | 13,252 | 24,742 | 20,166 |
Total provision | $159,422 | $164,662 | $147,256 |
INCOME_TAXES_Reconciliation_of
INCOME TAXES - Reconciliation of Income Tax Provision Computed at Federal Statutory Rate to Effective Tax Rate (Detail) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% | ||
State and local taxes, net of federal tax effect | 1.90% | 2.30% | 2.90% | ||
Foreign tax rates | -0.50% | -0.80% | -1.20% | ||
Change in deferred tax assets from an increase in tax basis of foreign assets | -1.80% | 0.00% | 0.00% | ||
Other | -1.90% | -2.00% | -1.40% | ||
Effective tax rate | 32.70% | 34.50% | 32.70% | 34.50% | 35.30% |
INCOME_TAXES_Deferred_Tax_Liab
INCOME TAXES - Deferred Tax Liabilities and Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax liabilities: | ||
Property, plant and equipment | ($41,071) | ($43,280) |
Goodwill and intangibles | -453,854 | -387,942 |
Total deferred tax liabilities | -494,925 | -431,222 |
Deferred tax assets: | ||
Accrued liabilities | 32,664 | 20,415 |
Stock based compensation | 21,139 | 20,361 |
Other | 17,922 | 5,264 |
Net operating tax loss carry-forwards | 20,017 | 8,097 |
Less: valuation allowance | -56 | -1,122 |
Total deferred tax assets | 91,686 | 53,015 |
Net deferred tax liabilities | ($403,239) | ($378,207) |
INCOME_TAXES_Summary_of_Change
INCOME TAXES - Summary of Changes in Unrecognized Tax Positions (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Change in Unrecognized Tax Positions [Roll Forward] | ||
Unrecognized tax positions, beginning of year | $16,104 | |
Gross increases - tax positions in prior period | 200 | 267 |
Gross decreases - tax positions in prior period | -762 | -1,129 |
Gross increases - current period tax positions | 3,081 | 2,514 |
Settlement | -1,165 | 0 |
Lapse of statute of limitations | -1,169 | -2,846 |
Unrecognized tax positions, end of year | $15,095 | $14,910 |
INCOME_TAXES_Additional_Inform
INCOME TAXES - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Cash payments for income taxes | $128,100,000 | $102,100,000 | $104,700,000 |
Net operating loss carry-forwards | 58,000,000 | ||
Tax benefit of net operating losses | 20,017,000 | 8,097,000 | |
Valuation allowance for net operating losses | 56,000 | 1,122,000 | |
Undistributed earnings of foreign subsidiaries | 421,000,000 | ||
Unrecognized tax positions | 15,095,000 | 14,910,000 | 16,104,000 |
Unrecognized tax positions that, if recognized, would affect the effective tax rate | 15,100,000 | ||
Interest and penalties recognized related to income tax reserves | $300,000 | $400,000 |
STOCK_BASED_COMPENSATION_Expen
STOCK BASED COMPENSATION - Expense Resulting from Stock Option Awards and ESPP (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $17,773 | $17,457 | $16,339 |
Stock Options [Member] | Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 52 | 120 | 136 |
Stock Options [Member] | Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 15,214 | 15,212 | 13,630 |
Restricted Stock Units (RSUs) [Member] | Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,267 | 1,116 | 1,474 |
ESPP shares [Member] | Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $1,240 | $1,009 | $1,099 |
STOCK_BASED_COMPENSATION_Tax_B
STOCK BASED COMPENSATION - Tax Benefits Related to Stock Compensation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Tax benefit recognized in Statements of Income | $4,849 | $4,518 | $5,818 |
Excess tax benefit realized | $17,906 | $17,153 | $30,161 |
STOCK_BASED_COMPENSATION_Stock
STOCK BASED COMPENSATION - Stock Option Activity (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Number of Options | |
Outstanding at beginning of year | 5,540,482 |
Granted | 981,583 |
Exercised | -991,201 |
Forfeited | -151,350 |
Canceled or expired | -1,657 |
Outstanding at December 31, 2014 | 5,377,857 |
Exercisable at December 31, 2014 | 2,719,760 |
Vested and expected to vest at December 31, 2014 | 5,176,959 |
Weighted Average Exercise Price per Share | |
Outstanding at beginning of year | $70.29 |
Granted | $115.41 |
Exercised | $53.49 |
Forfeited | $96.43 |
Canceled or expired | $80.96 |
Outstanding at December 31, 2014 | $80.88 |
Exercisable at December 31, 2014 | $65.54 |
Vested and expected to vest at December 31, 2014 | $80.02 |
STOCK_BASED_COMPENSATION_Intri
STOCK BASED COMPENSATION - Intrinsic Value of Options Exercised (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total exercise intrinsic value of options exercised | $55,757 | $97,816 | $65,884 |
STOCK_BASED_COMPENSATION_Outst
STOCK BASED COMPENSATION - Outstanding and Exercisable Options (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted average remaining contractual life of outstanding options | 6 years 1 month 6 days | 6 years 7 months 6 days | 6 years 8 months 12 days |
Total aggregate intrinsic value of outstanding options | $269,900 | $254,200 | $175,200 |
Weighted average remaining contractual life of exercisable options | 5 years 1 month 6 days | 5 years 3 months 18 days | 5 years 6 months |
Total aggregate intrinsic value of exercisable options | $178,300 | $161,100 | $114,500 |
STOCK_BASED_COMPENSATION_Optio
STOCK BASED COMPENSATION - Options Outstanding and Exercisable by Price Range (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 5,377,857 | 5,540,482 | |
Options Outstanding, Outstanding Average Remaining Life | 6 years 1 month 6 days | 6 years 7 months 6 days | 6 years 8 months 12 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $80.88 | $70.29 | |
Options Exercisable, Shares | 2,719,760 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $65.54 | ||
$22.90 - $46.83 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 663,353 | ||
Options Outstanding, Outstanding Average Remaining Life | 3 years 11 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $41.99 | ||
Options Exercisable, Shares | 659,353 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $42.06 | ||
Range of Exercise Price, Lower Range Limit | $22.90 | ||
Range of Exercise Price, Upper Range Limit | $46.83 | ||
$46.87 - $51.20 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 72,225 | ||
Options Outstanding, Outstanding Average Remaining Life | 4 years 4 months 2 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $49.70 | ||
Options Exercisable, Shares | 68,225 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $49.61 | ||
Range of Exercise Price, Lower Range Limit | $46.87 | ||
Range of Exercise Price, Upper Range Limit | $51.20 | ||
$51.55 - $51.55 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 539,334 | ||
Options Outstanding, Outstanding Average Remaining Life | 5 years 1 month 6 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $51.55 | ||
Options Exercisable, Shares | 380,195 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $51.55 | ||
Range of Exercise Price, Lower Range Limit | $51.55 | ||
Range of Exercise Price, Upper Range Limit | $51.55 | ||
$51.75 - $83.88 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 550,039 | ||
Options Outstanding, Outstanding Average Remaining Life | 3 years 11 months 12 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $57.71 | ||
Options Exercisable, Shares | 524,647 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $57.16 | ||
Range of Exercise Price, Lower Range Limit | $51.75 | ||
Range of Exercise Price, Upper Range Limit | $83.88 | ||
$83.95 - $84.91 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 48,731 | ||
Options Outstanding, Outstanding Average Remaining Life | 7 years 4 months 2 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $84.01 | ||
Options Exercisable, Shares | 43,081 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $83.96 | ||
Range of Exercise Price, Lower Range Limit | $83.95 | ||
Range of Exercise Price, Upper Range Limit | $84.91 | ||
$85.00 - $85.00 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 614,657 | ||
Options Outstanding, Outstanding Average Remaining Life | 6 years 1 month 6 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $85 | ||
Options Exercisable, Shares | 327,701 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $85 | ||
Range of Exercise Price, Lower Range Limit | $85 | ||
Range of Exercise Price, Upper Range Limit | $85 | ||
$85.02 - $86.02 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 11,450 | ||
Options Outstanding, Outstanding Average Remaining Life | 7 years 2 months 5 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $85.44 | ||
Options Exercisable, Shares | 3,300 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $85.32 | ||
Range of Exercise Price, Lower Range Limit | $85.02 | ||
Range of Exercise Price, Upper Range Limit | $86.02 | ||
$86.24 - $86.24 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 801,630 | ||
Options Outstanding, Outstanding Average Remaining Life | 7 years 1 month 13 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $86.24 | ||
Options Exercisable, Shares | 317,562 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $86.24 | ||
Range of Exercise Price, Lower Range Limit | $86.24 | ||
Range of Exercise Price, Upper Range Limit | $86.24 | ||
$86.83 - $95.03 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 179,092 | ||
Options Outstanding, Outstanding Average Remaining Life | 6 years 9 months 29 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $90.13 | ||
Options Exercisable, Shares | 124,033 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $89.22 | ||
Range of Exercise Price, Lower Range Limit | $86.83 | ||
Range of Exercise Price, Upper Range Limit | $95.03 | ||
$95.87 - $132.95 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 1,897,346 | ||
Options Outstanding, Outstanding Average Remaining Life | 7 years 8 months 23 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $106.15 | ||
Options Exercisable, Shares | 271,663 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $100.63 | ||
Range of Exercise Price, Lower Range Limit | $95.87 | ||
Range of Exercise Price, Upper Range Limit | $132.95 | ||
$22.90 - $132.95 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 5,377,857 | ||
Options Outstanding, Outstanding Average Remaining Life | 6 years 1 month 21 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $80.88 | ||
Options Exercisable, Shares | 2,719,760 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $65.54 | ||
Range of Exercise Price, Lower Range Limit | $22.90 | ||
Range of Exercise Price, Upper Range Limit | $132.95 |
STOCK_BASED_COMPENSATION_Assum
STOCK BASED COMPENSATION - Assumptions used in Black-Scholes Model (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock options granted (shares) | 981,583 | 1,057,630 | 1,142,205 |
Weighted average fair value at grant date | $21.31 | $22.02 | $20.14 |
Expected term | 4 years 9 months 4 days | 5 years 9 months 22 days | 6 years |
Expected volatility | 17.23% | 27.03% | 27.87% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk free interest rate | 1.53% | 1.00% | 1.05% |
STOCK_BASED_COMPENSATION_Restr
STOCK BASED COMPENSATION - Restricted Stock Units Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total aggregate intrinsic value of outstanding units | $8,337 | $8,185 | $6,362 |
Per share fair value of units granted (in dollars per share) | $115.67 | $96.40 | $86.24 |
Number of Units | |||
Non-vested at beginning of year | 70,457 | ||
Granted | 16,334 | ||
Vested and released | -17,288 | ||
Forfeited | -5,903 | ||
Non-vested at December 31, 2014 | 63,600 | 70,457 | |
Weighted Average Grant Date Fair Value Per Share | |||
Non-vested at beginning of year | $88.32 | ||
Granted | $115.67 | $96.40 | $86.24 |
Vested and released | $85 | ||
Forfeited | $90.53 | ||
Non-vested at December 31, 2014 | $96.04 | $88.32 |
STOCK_BASED_COMPENSATION_Addit
STOCK BASED COMPENSATION - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares reserved for future issuance | 9,450,645 | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 900,000 | ||
Percentage of discount to market price | 85.00% | ||
Term of offering period | 6 months | ||
Maximum payroll deductions during the offering period, per employee | $5,000 | ||
Shares available for issuance (in shares) | 259,503 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum term of an option granted under any plan | 10 years | ||
Unrecognized compensation expenses related to non-vested option awards | 44,100,000 | ||
Weighted average period of recognition for unrecognized compensation expenses | 2 years 9 months 22 days | ||
Stock Options [Member] | Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Stock Options [Member] | Officers And Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period of recognition for unrecognized compensation expenses | 2 years 10 months 13 days | ||
Ratio of share reserve related to RSUs granted | 2 | ||
Unrecognized compensation expenses related to RSUs | 4,100,000 | ||
Fair value of units vested (in shares) | $2,000,000 | $1,200,000 | $400,000 |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
ESPP shares [Member] | Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issued during period (in shares) | 60,189 | 52,956 | 56,362 |
PREFERRED_STOCK_Detail
PREFERRED STOCK (Detail) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | |||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
EARNINGS_PER_COMMON_SHARE_Comp
EARNINGS PER COMMON SHARE - Computation of Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||||||||||
Numerator for basic earnings per share net income attributable to Stericycle, Inc. | $82,526 | $82,845 | $81,936 | $79,149 | $78,164 | $80,547 | $78,044 | $74,617 | $326,456 | $311,372 | $267,996 |
Denominator: | |||||||||||
Denominator for basic earnings per share-weighted average shares | 84,932,792 | 85,902,550 | 85,401,365 | ||||||||
Effect of diluted securities: | |||||||||||
Employee stock options | 1,300,820 | 1,489,438 | 1,617,108 | ||||||||
Denominator for diluted earnings per share-adjusted weighted average shares and after assumed exercises | 86,233,612 | 87,391,988 | 87,018,473 | ||||||||
Earnings per share – Basic (in dollars per share) | $0.97 | $0.98 | $0.97 | $0.93 | $0.91 | $0.94 | $0.91 | $0.87 | $3.84 | $3.62 | $3.14 |
Earnings per share – Diluted (in dollars per share) | $0.96 | $0.96 | $0.95 | $0.91 | $0.90 | $0.92 | $0.89 | $0.85 | $3.79 | $3.56 | $3.08 |
EARNINGS_PER_COMMON_SHARE_Addi
EARNINGS PER COMMON SHARE - Additional Information (Details) (Stock Options [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 830,755 | 846,808 | 1,049,707 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Exercise Price Range Lower Limit | $105.12 | $94.76 | $77.49 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Exercise Price Range Upper Limit | $132.95 | $119.19 | $94.76 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of Total Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income (loss) loss, beginning balance | ($56,468) | ($39,064) | ($45,984) |
Period change | -81,951 | -17,404 | 6,920 |
Accumulated other comprehensive income (loss), ending balance | -138,419 | -56,468 | -39,064 |
Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income (loss) loss, beginning balance | -55,010 | -37,292 | -43,584 |
Period change | -80,221 | -17,718 | 6,292 |
Accumulated other comprehensive income (loss), ending balance | -135,231 | -55,010 | -37,292 |
Unrealized Gains (Losses) on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income (loss) loss, beginning balance | -1,458 | -1,772 | -2,400 |
Period change | -1,730 | 314 | 628 |
Accumulated other comprehensive income (loss), ending balance | ($3,188) | ($1,458) | ($1,772) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | |||
Tax impact of unrealized loss on cash flow hedges in accumulated other comprehensive income | $1 | $0.20 | $0.40 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | $824,532 | $681,998 | |
Less: accumulated depreciation | -364,124 | -323,031 | |
Property, plant and equipment, net | 460,408 | 358,967 | 335,870 |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 63,600 | 26,818 | |
Building and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 142,680 | 113,740 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 250,684 | 214,324 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 56,650 | 46,579 | |
Containers [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 155,238 | 145,273 | |
Office equipment and furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 80,158 | 68,005 | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 40,291 | 25,676 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | $35,231 | $41,583 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Beginning Balance | $2,231,582 | $2,065,103 |
Goodwill acquired during year | 258,017 | 173,784 |
Purchase accounting allocation adjustments | -22,420 | 6,011 |
Changes due to foreign currency fluctuations | -48,347 | -13,316 |
Ending Balance | 2,418,832 | 2,231,582 |
United States | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 1,678,077 | 1,616,286 |
Goodwill acquired during year | 169,754 | 57,250 |
Purchase accounting allocation adjustments | -4,825 | 4,541 |
Changes due to foreign currency fluctuations | 0 | 0 |
Ending Balance | 1,843,006 | 1,678,077 |
International [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 553,505 | 448,817 |
Goodwill acquired during year | 88,263 | 116,534 |
Purchase accounting allocation adjustments | -17,595 | 1,470 |
Changes due to foreign currency fluctuations | -48,347 | -13,316 |
Ending Balance | $575,826 | $553,505 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Values of Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | $1,024,567 | $808,133 |
Accumulated Amortization | 114,922 | 88,098 |
Net Value | 909,645 | 720,035 |
Amortizable intangibles | Covenants not-to-compete | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 8,474 | 9,405 |
Accumulated Amortization | 5,688 | 5,366 |
Net Value | 2,786 | 4,039 |
Amortizable intangibles | Customer relationships | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 755,148 | 670,889 |
Accumulated Amortization | 107,365 | 81,271 |
Net Value | 647,783 | 589,618 |
Amortizable intangibles | Trade names | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 6,062 | 5,283 |
Accumulated Amortization | 1,313 | 1,031 |
Net Value | 4,749 | 4,252 |
Amortizable intangibles | Technology | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 611 | 611 |
Accumulated Amortization | 521 | 416 |
Net Value | 90 | 195 |
Amortizable intangibles | Other | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 539 | 91 |
Accumulated Amortization | 35 | 14 |
Net Value | 504 | 77 |
Indefinite lived intangibles | Operating permits | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 247,933 | 116,054 |
Net Value | 247,933 | 116,054 |
Indefinite lived intangibles | Trade names | ||
Intangible Assets by Major Class [Line Items] | ||
Gross Carrying Amount | 5,800 | 5,800 |
Net Value | $5,800 | $5,800 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expense (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $34,431 |
2016 | 34,091 |
2017 | 33,946 |
2018 | 33,891 |
2019 | $33,870 |
GOODWILL_AND_OTHER_INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | |
Reporting_unit | ||||
Intangible Assets by Major Class [Line Items] | ||||
Number of geographical reportable segments | 2 | |||
Number of reporting units | 3 | |||
Goodwill | $2,418,832,000 | $2,231,582,000 | $2,065,103,000 | |
Aggregate amortization expense | 32,692,000 | 27,067,000 | 22,054,000 | |
Covenants not-to-compete | Minimum | ||||
Intangible Assets by Major Class [Line Items] | ||||
Finite-lived intangible assets, useful life | 3 years | |||
Covenants not-to-compete | Maximum [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Finite-lived intangible assets, useful life | 14 years | |||
Customer relationships | ||||
Intangible Assets by Major Class [Line Items] | ||||
Finite lived intangible assets, weighted average remaining useful life | 23 years 9 months 18 days | |||
Customer relationships | Minimum | ||||
Intangible Assets by Major Class [Line Items] | ||||
Finite-lived intangible assets, useful life | 10 years | |||
Customer relationships | Maximum [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Finite-lived intangible assets, useful life | 40 years | |||
Trade names | Minimum | ||||
Intangible Assets by Major Class [Line Items] | ||||
Finite-lived intangible assets, useful life | 10 years | |||
Trade names | Maximum [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Finite-lived intangible assets, useful life | 40 years | |||
Market Approach Goodwill Impairment Test [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 100.00% | |||
Domestic Regulated and Compliance Services [Member] | Income Approach Goodwill Impairment Test [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 100.00% | |||
Domestic Regulated Recall and Returns Management Services [Member] | Income Approach Goodwill Impairment Test [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 100.00% | |||
International Regulated and Compliance Services [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Goodwill | 576,700,000 | |||
International Regulated and Compliance Services [Member] | Income Approach Goodwill Impairment Test [Member] | ||||
Intangible Assets by Major Class [Line Items] | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 85.00% | |||
Operating permits | ||||
Intangible Assets by Major Class [Line Items] | ||||
Write off of permit intangibles | $9,900,000 | $2,900,000 |
ACCRUED_LIABILITIES_Detail
ACCRUED LIABILITIES (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued compensation | $37,932 | $36,210 |
Accrued insurance | 40,387 | 29,363 |
Accrued taxes | 17,847 | 19,538 |
Accrued interest | 9,096 | 8,593 |
Accrued professional services | 3,703 | 3,097 |
Others | 22,778 | 10,644 |
Total accrued liabilities | $131,743 | $107,445 |
ENVIRONMENTAL_REMEDIATION_LIAB1
ENVIRONMENTAL REMEDIATION LIABILITIES (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Environmental Remediation Obligations [Abstract] | |
Environmental remediation liabilities | $32.60 |
Environmental remediation liabilities, classified as accrued liabilities | 2.9 |
Environmental remediation liabilities, classified as other liabilities | $29.70 |
DEBT_Schedule_of_LongTerm_Debt
DEBT - Schedule of Long-Term Debt (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 03, 2014 | Jun. 01, 2014 | |
Debt Instrument [Line Items] | ||||
Total debt | $1,659,215,000 | $1,431,043,000 | ||
Less: current portion of total debt | 131,969,000 | 150,380,000 | ||
Long-term portion of total debt | 1,527,246,000 | 1,280,663,000 | ||
Obligations under capital leases | ||||
Debt Instrument [Line Items] | ||||
Total debt | 9,185,000 | 7,343,000 | ||
$1.2 billion senior credit facility weighted average rate 1.50%, due in 2019 | ||||
Debt Instrument [Line Items] | ||||
Total debt | 459,975,000 | 272,358,000 | ||
Maximum borrowing capacity of line of credit facility | 1,200,000,000 | 1,200,000,000 | 1,000,000,000 | |
Stated interest rate | 1.50% | |||
$100 million private placement notes 5.64%, due in 2015 | ||||
Debt Instrument [Line Items] | ||||
Total debt | 100,000,000 | 100,000,000 | ||
Long-term debt, face amount | 100,000,000 | |||
Stated interest rate | 5.64% | |||
$175 million private placement notes 3.89%, due in 2017 | ||||
Debt Instrument [Line Items] | ||||
Total debt | 175,000,000 | 175,000,000 | ||
Long-term debt, face amount | 175,000,000 | |||
Stated interest rate | 3.89% | |||
$125 million private placement notes 2.68%, due in 2019 | ||||
Debt Instrument [Line Items] | ||||
Total debt | 125,000,000 | 125,000,000 | ||
Long-term debt, face amount | 125,000,000 | |||
Stated interest rate | 2.68% | |||
$225 million private placement notes 4.47%, due in 2020 | ||||
Debt Instrument [Line Items] | ||||
Total debt | 225,000,000 | 225,000,000 | ||
Long-term debt, face amount | 225,000,000 | |||
Stated interest rate | 4.47% | |||
$125 million private placement notes 3.26%, due in 2022 | ||||
Debt Instrument [Line Items] | ||||
Total debt | 125,000,000 | 125,000,000 | ||
Long-term debt, face amount | 125,000,000 | |||
Stated interest rate | 3.26% | |||
Promissory notes and deferred consideration weighted average rate of 4.07% and weighted average maturity of 3.5 years | ||||
Debt Instrument [Line Items] | ||||
Total debt | 279,590,000 | 252,195,000 | ||
Weighted average interest rate | 4.07% | |||
Weighted average maturity | 3 years 6 months | |||
Foreign bank debt weighted average rate 9.48% and weighted average maturity of 1.8 years | ||||
Debt Instrument [Line Items] | ||||
Total debt | $160,465,000 | $149,147,000 | ||
Weighted average interest rate | 9.48% | |||
Weighted average maturity | 1 year 9 months 18 days |
DEBT_Payments_Due_on_LongTerm_
DEBT - Payments Due on Long-Term Debt, Excluding Capital Lease Obligations (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $128,339 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 253,245 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 263,010 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 33,907 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 601,527 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 370,002 |
Long-term Debt | $1,650,030 |
DEBT_Property_under_Capital_Le
DEBT - Property under Capital Leases Included with Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Capital Leased Assets [Line Items] | ||
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | ($5,375) | ($3,905) |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 10,033 | 9,635 |
Land [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | 174 | 198 |
Building [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | 896 | 550 |
Machinery and Equipment [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | 1,230 | 2,262 |
Vehicles [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Leased Assets, Gross | $13,108 | $10,530 |
DEBT_Minimum_Future_Lease_Paym
DEBT - Minimum Future Lease Payments under Capital Leases (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | $4,788 |
2016 | 3,379 |
2017 | 2,664 |
2018 | 90 |
2019 | 62 |
Thereafter | 453 |
Total minimum lease payments | 11,436 |
Less: amounts representing interest | -2,251 |
Present value of net minimum lease payments | 9,185 |
Less: current portion included in other current liabilities | -3,630 |
Long-term obligations under capital leases | $5,555 |
DEBT_Additional_Information_De
DEBT - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||||
Jun. 02, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 03, 2014 | Jun. 01, 2014 | |
Debt Instrument [Line Items] | ||||||
Interest Paid | $57,800,000 | $51,000,000 | $47,500,000 | |||
Payment of financing fees | 2,100,000 | 2,280,000 | 0 | 956,000 | ||
$1.2 billion senior credit facility weighted average rate 1.50%, due in 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity of line of credit facility | 1,200,000,000 | 1,200,000,000 | 1,000,000,000 | |||
Revolving credit facility, amount committed to outstanding letters of credit | 162,900,000 | 155,000,000 | ||||
Revolving credit facility, unused portion | 577,100,000 | 572,600,000 | ||||
$100 million private placement notes 5.64%, due in 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, face amount | 100,000,000 | |||||
$175 million private placement notes 3.89%, due in 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, face amount | 175,000,000 | |||||
$125 million private placement notes 2.68%, due in 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, face amount | 125,000,000 | |||||
$225 million private placement notes 4.47%, due in 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, face amount | 225,000,000 | |||||
$125 million private placement notes 3.26%, due in 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, face amount | 125,000,000 | |||||
Long-term Debt [Member] | $100 million private placement notes 5.64%, due in 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, face amount | $100,000,000 |
LEASE_COMMITMENTS_Minimum_Futu
LEASE COMMITMENTS - Minimum Future Rental Payments under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
2015 | $81,926 |
2016 | 69,069 |
2017 | 59,864 |
2018 | 45,680 |
2019 | 34,728 |
Thereafter | 44,098 |
Minimum future rental payments under operating leases | $335,365 |
LEASE_COMMITMENTS_Additional_I
LEASE COMMITMENTS - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Leased Assets [Line Items] | |||
Rent expense | $111.50 | $92.40 | $85.50 |
Maximum [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease agreements, expiration (various dates over the next 22 years) | 20 years |
EMPLOYEE_BENEFIT_PLAN_Detail
EMPLOYEE BENEFIT PLAN (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of contribution to 401(k) defined contribution retirement savings plan by employer | 50.00% | ||
Percentage of contribution to 401(k) defined contribution retirement savings plan by each employee | 5.00% | ||
Employer 401(k) maximum annual matching contribution to each employee | $1,750 | ||
Domestic Defined Contribution Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions to 401(k) plan | 3,600,000 | 3,000,000 | 2,800,000 |
Foreign Defined Contribution Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions to 401(k) plan | $1,900,000 | $900,000 | $800,000 |
PRODUCTS_AND_SERVICES_AND_GEOG2
PRODUCTS AND SERVICES AND GEOGRAPHIC INFORMATION Summary Information of Reportable Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $676,947 | $667,877 | $640,822 | $569,955 | $567,899 | $534,579 | $526,525 | $513,804 | $2,555,601 | $2,142,807 | $1,913,149 |
Income before income taxes | 487,568 | 477,746 | 417,197 | ||||||||
Assets | 4,401,722 | 3,887,973 | 4,401,722 | 3,887,973 | 3,546,738 | ||||||
Property, Plant and Equipment, less accumulated depreciation of $364,124 in 2014 and $323,031 in 2013 | 460,408 | 358,967 | 460,408 | 358,967 | 335,870 | ||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,796,796 | 1,506,587 | 1,370,806 | ||||||||
Income before income taxes | 436,229 | 404,620 | 359,748 | ||||||||
Assets | 3,008,547 | 2,541,323 | 3,008,547 | 2,541,323 | 2,427,297 | ||||||
Property, Plant and Equipment, less accumulated depreciation of $364,124 in 2014 and $323,031 in 2013 | 297,558 | 214,810 | 297,558 | 214,810 | 207,387 | ||||||
International [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 758,805 | 636,220 | 542,343 | ||||||||
Income before income taxes | 51,339 | 73,126 | 57,449 | ||||||||
Assets | 1,393,175 | 1,346,650 | 1,393,175 | 1,346,650 | 1,119,441 | ||||||
Property, Plant and Equipment, less accumulated depreciation of $364,124 in 2014 and $323,031 in 2013 | 162,850 | 144,157 | 162,850 | 144,157 | 128,483 | ||||||
International [Member] | Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 407,082 | 341,387 | 301,615 | ||||||||
Property, Plant and Equipment, less accumulated depreciation of $364,124 in 2014 and $323,031 in 2013 | 70,621 | 74,915 | 70,621 | 74,915 | 64,690 | ||||||
International [Member] | Other International Countries [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 351,723 | 294,833 | 240,728 | ||||||||
Property, Plant and Equipment, less accumulated depreciation of $364,124 in 2014 and $323,031 in 2013 | $92,229 | $69,242 | $92,229 | $69,242 | $63,793 |
PRODUCTS_AND_SERVICES_AND_GEOG3
PRODUCTS AND SERVICES AND GEOGRAPHIC INFORMATION Detailed Information for Reporting Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $676,947 | $667,877 | $640,822 | $569,955 | $567,899 | $534,579 | $526,525 | $513,804 | $2,555,601 | $2,142,807 | $1,913,149 |
Income before income taxes | 487,568 | 477,746 | 417,197 | ||||||||
Income taxes | 159,422 | 164,662 | 147,256 | ||||||||
Net Income | 328,146 | 313,084 | 269,941 | ||||||||
Less: Net Income Attributable to Noncontrolling Interests | 1,690 | 1,712 | 1,945 | ||||||||
Net Income Attributable to Stericycle, Inc. | 82,526 | 82,845 | 81,936 | 79,149 | 78,164 | 80,547 | 78,044 | 74,617 | 326,456 | 311,372 | 267,996 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,796,796 | 1,506,587 | 1,370,806 | ||||||||
Net interest expense | 44,926 | 43,131 | 41,084 | ||||||||
Income before income taxes | 436,229 | 404,620 | 359,748 | ||||||||
Income taxes | 161,672 | 152,874 | 138,807 | ||||||||
Net Income Attributable to Stericycle, Inc. | 274,557 | 251,746 | 220,941 | ||||||||
Depreciation and amortization | 59,888 | 50,166 | 45,234 | ||||||||
Capital expenditures | 57,019 | 43,442 | 38,528 | ||||||||
United States | Regulated Waste and Compliance Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,715,437 | 1,408,812 | 1,254,486 | ||||||||
United States | Recall and returns solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 81,359 | 97,775 | 116,320 | ||||||||
International [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 758,805 | 636,220 | 542,343 | ||||||||
Net interest expense | 21,096 | 11,818 | 10,186 | ||||||||
Income before income taxes | 51,339 | 73,126 | 57,449 | ||||||||
Income taxes | -2,250 | 11,788 | 8,449 | ||||||||
Net Income | 53,589 | 61,338 | 49,000 | ||||||||
Less: Net Income Attributable to Noncontrolling Interests | 1,690 | 1,712 | 1,945 | ||||||||
Net Income Attributable to Stericycle, Inc. | 51,899 | 59,626 | 47,055 | ||||||||
Depreciation and amortization | 44,728 | 38,242 | 31,049 | ||||||||
Capital expenditures | 29,477 | 29,667 | 26,708 | ||||||||
International [Member] | Regulated Waste and Compliance Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $758,805 | $636,220 | $542,343 |
PRODUCTS_AND_SERVICES_AND_GEOG4
PRODUCTS AND SERVICES AND GEOGRAPHIC INFORMATION Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Number of geographical reportable segments | 2 |
United States | |
Segment Reporting Information [Line Items] | |
Number of geographical reportable segments | 1 |
LEGAL_PROCEEDINGS_Details
LEGAL PROCEEDINGS (Details) (USD $) | Apr. 02, 2014 | Sep. 18, 2014 |
Junk Fax Lawsuit [Member] | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss, per violation | $500 | |
Notice of Violation, New Mexico Environment Department [Member] | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss, could exceed | $100,000 |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $676,947 | $667,877 | $640,822 | $569,955 | $567,899 | $534,579 | $526,525 | $513,804 | $2,555,601 | $2,142,807 | $1,913,149 |
Gross profit | 284,969 | 278,669 | 275,304 | 255,469 | 253,285 | 241,403 | 237,852 | 232,094 | 1,094,411 | 964,634 | |
Acquisition expenses | -2,661 | -3,472 | -3,979 | -3,221 | -4,037 | -2,111 | -2,324 | -1,803 | -13,333 | -10,275 | -7,900 |
Integration expenses | -11,343 | -7,461 | -4,679 | -2,485 | -2,819 | -1,423 | -1,383 | -896 | -25,968 | -6,521 | |
Change in fair value of contingent consideration | 5,405 | 0 | 836 | -4,789 | 1,971 | 185 | 122 | 0 | 1,452 | 2,278 | -752 |
Restructuring costs and plant closure expense | -10,495 | -2,380 | -1,115 | -574 | -2,012 | -787 | -104 | 0 | -14,564 | -2,903 | |
Impairment of Intangible Assets (Excluding Goodwill) | -1,405 | 0 | 0 | 0 | -1,405 | ||||||
Litigation settlement | -3,331 | -1,342 | -396 | -1,505 | -2,120 | -12 | 2 | -106 | -6,574 | -2,236 | |
Net income attributable to Stericycle, Inc. | $82,526 | $82,845 | $81,936 | $79,149 | $78,164 | $80,547 | $78,044 | $74,617 | $326,456 | $311,372 | $267,996 |
Basic earnings per common share | $0.97 | $0.98 | $0.97 | $0.93 | $0.91 | $0.94 | $0.91 | $0.87 | $3.84 | $3.62 | $3.14 |
Diluted earnings per common share | $0.96 | $0.96 | $0.95 | $0.91 | $0.90 | $0.92 | $0.89 | $0.85 | $3.79 | $3.56 | $3.08 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Period | $19,134 | $19,443 | $18,905 |
Additions/(Deductions) Charged to/(from) Expenses | 9,869 | 4,823 | 4,634 |
Other Charges/(Reversals)/Changes to Reserves | 842 | 322 | 414 |
Write-offs/ Payments | -10,762 | -5,454 | -4,510 |
Balance End of Period | 19,083 | 19,134 | 19,443 |
Valuation Allowance on Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Period | 1,122 | 3,340 | 3,775 |
Additions/(Deductions) Charged to/(from) Expenses | 0 | -1,451 | 0 |
Other Charges/(Reversals)/Changes to Reserves | -1,066 | -767 | -435 |
Balance End of Period | $56 | $1,122 | $3,340 |