Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 01, 2017 | Jun. 30, 2016 | |
Document Document And Entity Information [Abstract] | |||
Entity Registrant Name | STERICYCLE INC | ||
Entity Central Index Key | 861,878 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SRCL | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 85,247,156 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 8,846,584,641 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 44,189 | $ 55,634 |
Short-term investments | 62 | 69 |
Accounts receivable, less allowance for doubtful accounts of $49,645 in 2016 and $22,329 in 2015 | 634,902 | 614,494 |
Prepaid expenses | 46,214 | 46,740 |
Assets held for sale | 9,134 | |
Other current assets | 39,117 | 44,891 |
Total Current Assets | 773,618 | 761,828 |
Property, plant and equipment, less accumulated depreciation of $495,215 in 2016 and $426,019 in 2015 | 723,894 | 665,602 |
Goodwill | 3,591,020 | 3,758,177 |
Intangible assets, less accumulated amortization of $271,568 in 2016 and $151,025 in 2015 | 1,861,973 | 1,842,561 |
Other assets | 29,556 | 36,995 |
Total Assets | 6,980,061 | 7,065,163 |
Current Liabilities: | ||
Current portion of long-term debt | 72,822 | 161,409 |
Accounts payable | 152,881 | 149,202 |
Accrued liabilities | 228,526 | 197,329 |
Deferred revenues | 17,902 | 16,989 |
Liabilities held for sale | 2,858 | |
Other current liabilities | 67,864 | 62,420 |
Total Current Liabilities | 542,853 | 587,349 |
Long-term debt, net | 2,877,315 | 3,040,352 |
Deferred income taxes | 645,371 | 608,272 |
Other liabilities | 98,136 | 81,352 |
Equity: | ||
Preferred stock (par value $0.01 per share, 1,000,000 shares authorized), mandatory convertible preferred stock, Series A, 726,500 issued and outstanding in 2016 and 770,000 issued and outstanding in 2015 | 7 | 8 |
Common stock (par value $.01 per share, 120,000,000 shares authorized, 85,152,700 issued and outstanding in 2016 and 84,852,584 issued and outstanding in 2015) | 852 | 849 |
Additional paid-in capital | 1,166,457 | 1,143,020 |
Accumulated other comprehensive loss | (367,643) | (282,631) |
Retained earnings | 2,006,064 | 1,868,645 |
Total Stericycle, Inc.’s Equity | 2,805,737 | 2,729,891 |
Noncontrolling interests | 10,649 | 17,947 |
Total Equity | 2,816,386 | 2,747,838 |
Total Liabilities and Equity | $ 6,980,061 | $ 7,065,163 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 49,645 | $ 22,329 |
Property, plant and equipment, accumulated depreciation | 495,215 | 426,019 |
Intangible assets, accumulated amortization | $ 271,568 | $ 151,025 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 726,500 | 770,000 |
Preferred stock, outstanding (in shares) | 726,500 | 770,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, issued (in shares) | 85,152,700 | 84,852,584 |
Common stock, outstanding (in shares) | 85,152,700 | 84,852,584 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenues | $ 3,562,342 | $ 2,985,908 | $ 2,555,601 |
Costs and Expenses: | |||
Cost of revenues (exclusive of depreciation shown below) | 1,971,842 | 1,658,081 | 1,404,712 |
Depreciation - cost of revenues | 88,546 | 61,642 | 56,478 |
Selling, general and administrative expenses (exclusive of depreciation and amortization shown below) | 904,179 | 712,803 | 489,937 |
Depreciation – SG&A | 34,700 | 20,272 | 15,446 |
Amortization | 129,300 | 45,498 | 32,692 |
Total Costs and Expenses | 3,128,567 | 2,498,296 | 1,999,265 |
Income from Operations | 433,775 | 487,612 | 556,336 |
Other Income (Expense): | |||
Interest income | 78 | 224 | 120 |
Interest expense | (97,787) | (77,498) | (66,142) |
Other (expense)/income, net | (7,921) | 569 | (2,746) |
Total Other Expense | (105,630) | (76,705) | (68,768) |
Income Before Income Taxes | 328,145 | 410,907 | 487,568 |
Income tax expense | 120,246 | 142,894 | 159,422 |
Net Income | 207,899 | 268,013 | 328,146 |
Less: net income attributable to noncontrolling interests | 1,540 | 967 | 1,690 |
Net Income Attributable to Stericycle, Inc. | 206,359 | 267,046 | 326,456 |
Mandatory convertible preferred stock dividend | 39,414 | 10,106 | 0 |
Gain on repurchase of preferred stock | (11,285) | 0 | 0 |
Net Income Attributable to Stericycle, Inc. Common Shareholders | $ 178,230 | $ 256,940 | $ 326,456 |
Earnings Per Common Share Attributable to Stericycle, Inc. Common Shareholders: | |||
Basic | $ 2.10 | $ 3.02 | $ 3.84 |
Diluted | $ 2.08 | $ 2.98 | $ 3.79 |
Weighted Average Number of Common Shares Outstanding: | |||
Basic | 84,932,402 | 84,944,841 | 84,932,792 |
Diluted | 85,610,219 | 86,162,609 | 86,233,612 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 207,899 | $ 268,013 | $ 328,146 |
Other Comprehensive Income/ (Loss): | |||
Foreign currency translation adjustments | (86,575) | (140,648) | (82,871) |
Amortization of cash flow hedge into income, net of tax expense ($687, $452 and $209 for the years ended December 31, 2016, 2015 and 2014, respectively) | 1,070 | 716 | 339 |
Change in fair value of cash flow hedge, net of tax expense/ (benefit) ($90, ($2,623) and ($813) for the years ended December 31, 2016, 2015 and 2014, respectively) | 258 | (4,119) | (2,069) |
Total Other Comprehensive Loss | (85,247) | (144,051) | (84,601) |
Comprehensive Income | 122,652 | 123,962 | 243,545 |
Less: comprehensive loss/(income) attributable to noncontrolling interests | 1,305 | 1,128 | (960) |
Comprehensive Income Attributable to Stericycle, Inc. Common Shareholders | $ 121,347 | $ 122,834 | $ 244,505 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Amortization of cash flow hedge into income, tax expense | $ 687 | $ 452 | $ 209 |
Change in fair value of cash flow hedge, tax expense/(benefit) | $ 90 | $ (2,623) | $ (813) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES: | |||
Net Income | $ 207,899 | $ 268,013 | $ 328,146 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock compensation expense | 20,455 | 21,750 | 17,773 |
Excess tax benefit of stock options exercised | (16,897) | (17,906) | |
Depreciation | 123,246 | 81,914 | 71,924 |
Amortization | 129,300 | 45,498 | 32,692 |
Deferred income taxes | 7,078 | (10,294) | 16,550 |
Asset impairment charges | 28,472 | 1,781 | |
Other, net | 975 | 5,686 | 8,932 |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | |||
Accounts receivable | (43,136) | (55,890) | (34,116) |
Accounts payable | 4,624 | 26,366 | (5,712) |
Accrued liabilities | 28,527 | 26,060 | 21,279 |
Deferred revenues | 1,383 | (4,615) | 1,017 |
Other assets and liabilities | 38,426 | 956 | 7,921 |
Net cash provided by operating activities | 547,249 | 390,328 | 448,500 |
INVESTING ACTIVITIES: | |||
Payments for acquisitions, net of cash acquired | (63,917) | (2,419,437) | (374,321) |
Proceeds from/ (purchases of) investments | 7 | 294 | (1,957) |
Proceeds from insurance settlement | 2,358 | ||
Proceeds from sale of business | 790 | ||
Proceeds from sale of property and equipment | 1,316 | ||
Capital expenditures | (136,160) | (114,761) | (86,496) |
Net cash used in investing activities | (195,606) | (2,533,904) | (462,774) |
FINANCING ACTIVITIES: | |||
Repayments of long-term debt and other obligations | (89,215) | (93,172) | (101,231) |
Proceeds from foreign bank debt | 76,237 | 53,747 | 205,086 |
Repayments of foreign bank debt | (84,114) | (87,308) | (193,284) |
Proceeds from term loan | 1,550,000 | 0 | |
Repayment of term loan | (250,000) | (300,000) | 0 |
Proceeds from private placement of long-term note | 600,000 | 0 | |
Repayments of private placement of long-term note | (100,000) | 0 | |
Proceeds from senior credit facility | 1,464,902 | 1,907,402 | 1,413,026 |
Repayments of senior credit facility | (1,393,323) | (2,004,385) | (1,216,031) |
Payments of capital lease obligations | (5,313) | (3,865) | (5,826) |
Payments of deferred financing costs | (605) | (9,903) | (2,280) |
Payment for hedge | (8,833) | ||
Payments for repurchase of common stock | (40,814) | (130,576) | (194,066) |
Payments for repurchase of mandatory convertible preferred stock | (30,910) | ||
Proceeds from issuance of mandatory convertible preferred stock | 746,900 | 0 | |
Proceeds from issuance of common stock | 37,504 | 60,124 | 51,852 |
Dividends paid on mandatory convertible preferred stock | (39,414) | (10,106) | 0 |
Excess tax benefit of stock options exercised | 16,897 | 17,906 | |
Payments to noncontrolling interests | (8,190) | (5,714) | (5,201) |
Net cash (used in)/ provided by financing activities | (363,255) | 2,181,208 | (30,049) |
Effect of exchange rate changes on cash and cash equivalents | 167 | (4,234) | (608) |
Net (decrease)/ increase in cash and cash equivalents | (11,445) | 33,398 | (44,931) |
Cash and cash equivalents at beginning of period | 55,634 | 22,236 | 67,167 |
Cash and cash equivalents at end of period | 44,189 | 55,634 | 22,236 |
NON-CASH ACTIVITIES: | |||
Issuances of obligations for acquisitions | $ 44,230 | $ 80,189 | $ 145,938 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Beginning Balance (in shares) at Dec. 31, 2013 | 0 | 85,500 | |||||
Beginning Balance at Dec. 31, 2013 | $ 1,767,538 | $ 0 | $ 855 | $ 195,110 | $ 1,610,964 | $ (56,468) | $ 17,077 |
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 and employee stock purchases (in shares) | 1,061 | ||||||
Issuance of common stock for exercise of options and employee stock purchases | 58,562 | $ 11 | 58,551 | ||||
Purchase and cancellation of treasury stock (in shares) | (1,677) | ||||||
Purchase and cancellation of treasury stock | (194,066) | $ (17) | (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 (in shares) at Dec. 31, 2014 | 0 | 84,884 | |||||
Ending Balance at Dec. 31, 2014 | 1,917,185 | $ 0 | $ 849 | 289,211 | 1,743,371 | (138,419) | 22,173 |
Net Income | 268,013 | 267,046 | 967 | ||||
Currency translation adjustment | (140,648) | (140,809) | 161 | ||||
Change in qualifying cash flow hedge, net of tax | (3,403) | (3,403) | |||||
Issuance of common stock for exercise of options and employee stock purchases (in shares) | 973 | ||||||
Issuance of common stock for exercise of options and employee stock purchases | 68,640 | $ 10 | 68,630 | ||||
Issuance of mandatory convertible preferred stock (in shares) | 770 | ||||||
Issuance of mandatory convertible preferred stock | 746,900 | $ 8 | 746,892 | ||||
Purchase and cancellation of treasury stock (in shares) | (1,004) | ||||||
Purchase and cancellation of treasury stock | (131,676) | $ (10) | (131,666) | ||||
Preferred stock dividend | (10,106) | (10,106) | |||||
Stock compensation expense | 21,750 | 21,750 | |||||
Excess tax benefit of stock options exercised | 16,897 | 16,897 | |||||
Reduction to noncontrolling interests due to additional ownership | (5,714) | (360) | (5,354) | ||||
Ending Balance (in shares) at Dec. 31, 2015 | 770 | 84,853 | |||||
Ending Balance at Dec. 31, 2015 | 2,747,838 | $ 8 | $ 849 | 1,143,020 | 1,868,645 | (282,631) | 17,947 |
Net Income | 207,899 | 206,359 | 1,540 | ||||
Currency translation adjustment | (86,575) | (86,340) | (235) | ||||
Change in qualifying cash flow hedge, net of tax | 1,328 | 1,328 | |||||
Issuance of common stock for exercise of options and employee stock purchases (in shares) | 661 | ||||||
Issuance of common stock for exercise of options and employee stock purchases | 44,769 | $ 6 | 44,763 | ||||
Purchase and cancellation of treasury stock (in shares) | (361) | ||||||
Purchase and cancellation of treasury stock | (40,814) | $ (3) | (40,811) | ||||
Purchase and cancellation of convertible preferred stock (in shares) | (44) | ||||||
Purchase and cancellation of convertible preferred stock | (30,910) | $ (1) | (42,194) | 11,285 | |||
Preferred stock dividend | (39,414) | (39,414) | |||||
Stock compensation expense | 20,455 | 20,455 | |||||
Reduction to noncontrolling interests due to additional ownership | (8,190) | 413 | (8,603) | ||||
Ending Balance (in shares) at Dec. 31, 2016 | 726 | 85,153 | |||||
Ending Balance at Dec. 31, 2016 | $ 2,816,386 | $ 7 | $ 852 | $ 1,166,457 | $ 2,006,064 | $ (367,643) | $ 10,649 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1 — DESCRIPTION OF BUSINESS We are a business-to-business services provider with a focus on regulated and compliance solutions for healthcare, retail, and commercial businesses. This includes the collection and processing of regulated and specialized waste for disposal and the collection of personal and confidential information for secure destruction, plus a variety of training, consulting, recall/return, communication, and compliance services. We were incorporated in 1989 and presently serve a diverse customer base of more than 1,000,000 customers throughout the United States, Argentina, Austria, Australia, Belgium, Brazil, Canada, Chile, France, Germany, Ireland, Japan |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation: The consolidated financial statements include the accounts of Stericycle, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company's consolidated financial statements were prepared in accordance with U.S. GAAP and include the assets, liabilities, revenue and expenses of all wholly-owned subsidiaries and majority-owned subsidiaries over which the Company exercises control. Outside stockholders' interests in subsidiaries are shown on the consolidated financial statements as “Noncontrolling interests." Revenue Recognition: Revenues for our regulated medical waste management services, other than our compliances services, and secure information destruction services 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 or delivered to a third party. 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 sales taxes and international value added tax ("VAT") and other similar pass through taxes are not included as revenue. Goodwill and Other Identifiable Intangible Assets: We have historically evaluated goodwill for impairment annually as of June 30, or when an indicator of impairment exists. During 2016, we changed the date of our annual goodwill impairment assessment for our reporting units to October 1st. This voluntary change in the annual goodwill testing date is a change in accounting principle, which we believe is preferable as it better aligns the timing of the assessment with the timing of the Company’s annual strategic planning and forecasting process. This change in assessment date was applied prospectively and did not delay, accelerate or avoid a potential impairment charge. We evaluated for retrospective application to be impractical as it would require significant estimates and assumptions with the use of hindsight. The Company has the option to assess goodwill for impairment by first performing a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then the two-step goodwill impairment test is not required to be performed. If the Company determines that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, or if the Company does not elect the option to perform an initial qualitative assessment, the Company performs the two-step goodwill impairment test. In the first step, the fair value of the reporting unit is compared to its book value including goodwill. If the fair value of the reporting unit is in excess of its book value, the related goodwill is not impaired and no further analysis is necessary. If the fair value of the reporting unit is less than its book value, there is an indication of potential impairment and a second step is performed. When required, the second step of testing involves calculating the implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in the same manner as goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit determined in step one over the fair value of its net assets, including identifiable intangible assets, as if the reporting unit had been acquired. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. We have historically tested our indefinite lived intangible assets for impairment annually at December 31, or more frequently, if circumstances indicate that they may be impaired. During 2016, we changed the date of our annual indefinite-lived intangible asset impairment assessment to October 1st. This voluntary change in the testing date is a change in accounting principle, which we believe is preferable as it better aligns the timing of the assessment with the timing of the Company’s annual strategic planning and forecasting process and it aligns the testing of all indefinite-lived impairment testing to be as of a consistent date. This change in assessment date was applied prospectively and did not delay, accelerate or avoid a potential impairment charge. We evaluated for retrospective application to be impractical as it would require significant estimates and assumptions with the use of hindsight. Impairment of Long-Lived Assets: Long-lived assets, such as property, plant and equipment and intangible assets which are amortized, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If circumstances require that a long-lived asset or asset group to be held and used be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that long-lived asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Long-lived assets or disposal groups classified as held for sale are recorded at the lower of their carrying amount or fair value less estimated selling costs. Long-lived assets are not depreciated or amortized while classified as held for sale. Income Taxes: We are subject to income taxes in both the U.S. and numerous foreign jurisdictions. We compute our provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities and for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. Significant judgments are required in order to determine the realizability of these deferred tax assets. In assessing the need for a valuation allowance, we evaluate all significant available positive and negative evidence, including historical operating results, estimates of future taxable income and the existence of prudent and feasible tax planning strategies. Changes in the expectations regarding the realization of deferred tax assets could materially impact income tax expense in future periods. Undistributed earnings of foreign subsidiaries are considered to be permanently reinvested, and therefore no deferred taxes are recorded on our outside basis differences. Tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition. For tax positions that meet the more likely than not threshold, a tax liability may still be recorded depending on management’s assessment of how the tax position will ultimately be settled. The Company records interest and penalties on unrecognized tax benefits in the provision for income taxes. Accounts Receivable: Accounts receivable consist of amounts due to us from our normal business activities. 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 based on the contractual terms with the customer. We maintain an allowance for doubtful accounts to reflect the expected uncollectability 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 1.4% of our accounts receivable. During the years ended December 31, 2016, 2015 and 2014, bad debt expense was $41.8 million, $13.7 million and $9.9 million, respectively. Stock-Based Compensation: We measure stock-based compensation cost at fair value. Expense is generally recognized on a straight-line basis over the service period during which awards are expected to vest. We present stock-based compensation expense within the Consolidated Statements of Income based on the classification of the respective employees' cash compensation. 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 is stated at cost. Depreciation and amortization, which includes the depreciation of assets recorded under capital leases, is 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 2 to 30 years Containers 2 to 20 years Vehicles 2 to 7 years Office equipment and furniture 2 to 20 years Software 2 to 7 years Our containers have a weighted average remaining useful life of 12.2 years. Lease and Asset Retirement Obligations: The Company classifies leases at their inception as either operating or capital leases and may receive renewal or expansion options, rent holidays, and leasehold improvement or other incentives on certain lease agreements. The Company recognizes operating lease costs on a straight-line basis, taking into account adjustments for free or escalating rental payments and deferred payment terms. Additionally, lease incentives are accounted for as a reduction of lease costs over the lease term. Rent expense associated with operating lease obligations that relate to the delivery of our services is presented in Cost of revenues (“COR”) and the remaining is classified within Selling, general and administrative expenses (“SG&A”) on the Consolidated Statements of Income. Minimum lease payments made under capital leases are apportioned between interest expense and a reduction of the related capital lease obligations, which are classified within Accrued liabilities and Current portion of long-term debt on the Consolidated Balance Sheets. The Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are amortized over the lease term, and the recorded liabilities are accreted to the Insurance: Our insurance for workers’ compensation, vehicle liability and physical damage, and employee-related health care benefits is obtained using high deductible insurance policies. A third-party administrator is used to process all such claims. We require all workers’ compensation, vehicle liability and physical damage claims to be reported within 24 hours. As a result, we accrue our workers’ compensation, vehicle and physical damage liability based upon the claim reserves established by the third-party administrator at the end of each reporting period includes an estimate for claims incurred but not yet reported. Our employee health insurance benefit liability is based on our historical claims experience. Financial Instruments: Our financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable and payable, derivatives, and long-term debt. 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 1.4% of total accounts receivable. We perform ongoing credit evaluation of our customers and maintain allowances for potential credit losses. 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 our allowance for doubtful accounts, credit memo reserve, accrued employee health and welfare benefits, environmental liabilities, 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. Foreign Currency: 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 on the Consolidated Balance Sheets. Foreign currency gains and losses resulting from transactions which are denominated in currencies other than the entity’s functional currency, including foreign currency gains and losses on intercompany balances that are not of a long-term investment nature, are included within Other (expense)/income, net on the Consolidated Statements of Income . Reclassifications: Certain amounts in previously issued financial statements have been reclassified to conform to the current period presentation. New Accounting Standards: Adoption of New Accounting Standards Going Concern The Company adopted the guidance in Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40) – Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Compensation - Stock Compensation On January 1, 2016, the Company adopted the guidance in Accounting Standards Update (ASU) No. 2016-09, “Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting.” earnings Interest-Imputation of Interest The Company adopted the guidance in ASU No. 2015-03, "Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" other assets and long-term debt by $12.3 million on the Consolidated Balance Sheet at December 31, 2015. Accounting Standards Issued But Not Yet Adopted Revenue From Contracts With Customers In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (Topic 606) Leases In February 2016, the FASB issued ASU No. 2016-02, “ Leases” (Topic 842) Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15 “Statement of Cash Flows” (Topic 230). This guidance clarifies diversity in practice on where in the Statement of Cash Flows to recognize certain transactions, including the classification of payment of contingent consideration for acquisitions between Financing and Operating activities. ASU 2016-15 is effective for us beginning January 1, 2018. The adoption of this guidance is not expected to have a significant impact on our financial statements, as our treatment of the relevant affected items within the Consolidated Statement of Cash Flows is consistent with the requirements of this guidance. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory. annual Intangibles – Goodwill and Other – Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment. |
ACQUISITIONS, DIVESTITURES, AND
ACQUISITIONS, DIVESTITURES, AND ASSETS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions Divestitures And Assets Held For Sale [Abstract] | |
ACQUISITIONS, DIVESTITURES, AND ASSETS HELD FOR SALE | NOTE 3 – ACQUISITIONS, DIVESTITURES, AND ASSETS HELD FOR SALE Acquisitions Domestically, we acquired selected assets and liabilities of fifteen secure information destruction businesses, selected assets and liabilities of three regulated waste businesses, one communication services business, and 100% of the stock of two regulated waste businesses. Internationally, we acquired selected assets and liabilities of regulated waste businesses: one in the Republic of Korea, two in Spain, two in Romania, and one in the United Kingdom. We also acquired selected assets and liabilities of three secure information destruction businesses in Australia, and 100% of the stock of another in Spain. The acquisitions were all considered to be business combinations under the guidance. The following table summarizes the locations of our acquisitions for the years ended December 31, 2016, 2015 and 2014: Acquisition Locations 2016 2015 2014 United States 21 19 17 Argentina — — 2 Australia 3 — 0 Brazil — 2 3 Canada — 2 2 Chile — — 3 Ireland — 1 — Japan — — 2 Mexico — 3 — Netherlands — 2 — Portugal — — 5 Republic of Korea 1 6 1 Romania 2 4 3 Spain 3 4 3 United Kingdom 1 — 3 Total 31 43 44 The following table summarizes the acquisition date fair value of consideration transferred for acquisitions completed during the years ended December 31, 2016, 2015 and 2014: In thousands 2016 2015 2014 Cash $ 55,388 $ 2,420,764 $ 373,820 Promissory notes 40,938 64,124 125,245 Deferred consideration 4,094 3,172 3,889 Contingent consideration 988 10,070 17,174 Total purchase price $ 101,408 $ 2,498,130 $ 520,128 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 year ended December 31, 2016, we recognized an increase in goodwill of $52.8 million related to current year acquisitions, excluding the effect of foreign currency translation. Approximately $40.3 million of the goodwill recognized during the year ended December 31, 2016 will be deductible for income taxes. During the year ended December 31, 2016, we recognized an increase in intangible assets from current year acquisitions of $35.6 million, excluding the effect of foreign currency translation. We recognized $34.6 million for the estimated fair value of acquired customer relationships with amortizable lives of 10 to 40 years and $1.0 million for covenant not-to-compete agreements with amortizable lives of 5 years. The fair value of consideration transferred in a business combination is allocated to the tangible and intangible assets assumed at the acquisition date, with the remaining unallocated amount recorded as goodwill. The allocations of the acquisition price for recent acquisitions have been prepared on a preliminary basis, pending completion of certain intangible asset valuations and finalization of the opening balance sheet. The following table summarizes the preliminary purchase price allocation for current period acquisitions during the year ended December 31, 2016: In thousands 2016 2015 2014 Fixed assets $ 13,079 $ 196,164 $ 96,868 Intangibles 35,564 1,016,774 249,414 Goodwill 52,769 1,450,950 258,017 Accounts receivable 3,155 135,758 65,509 Net other assets/ (liabilities) 171 18,843 (11,359 ) Current liabilities (933 ) (90,133 ) (64,396 ) Debt (188 ) (4,955 ) (22,423 ) Environmental remediation liabilities — — (32,383 ) Net deferred tax liabilities (2,209 ) (225,271 ) (12,338 ) Noncontrolling interest — — (6,781 ) Total purchase price allocation $ 101,408 $ 2,498,130 $ 520,128 During the years ended December 31, 2016, 2015 and 2014, the Company incurred $9.6 million, $39.1 million, and $13.3 million, respectively, of acquisition related expenses. These expenses are included within SG&A on the Consolidated Statements of Income. The results of operations of these acquired businesses have been included on the Consolidated Statements of Income from the date of the acquisition. Pro forma results of operations for these acquisitions are not presented because the pro forma effects, individually or in the aggregate, were not material to the Company’s consolidated results of operations. On October 1, 2015, we acquired Shred-it International ULC, an Alberta unlimited liability corporation ("SII"), Shredit JV LP, an Ontario limited partnership ("Shredit JV"), Boost GP Corp., an Ontario corporation ("Boost GP"), and Boost Holdings LP, an Ontario limited partnership (together with SII, Shred-it JV and Boost GP, "Shred-it"). Shred-it is the global leader in secure information destruction, a highly complementary service to our regulated waste and compliance services and provides operational synergies stemming from our core competencies in route logistics and lean management systems. The aggregate purchase price was $2.3 billion in cash. The following table summarizes the adjustments to the consideration transferred for prior year acquisitions and primarily includes $9.5 million of additional cash consideration paid in March 2016 as part of the final working capital adjustments for the 2015 Shred-it acquisition: In thousands Cash $ 8,529 Promissory notes (1,790 ) Total purchase price $ 6,739 During 2016, we recorded various adjustments to our provisional amounts related to the Shred-it and other prior year acquisitions. The following table summarizes these adjustments by major assets acquired and liabilities assumed: In thousands Shred-it Acquisition Other Prior Year Acquisitions Total Fixed assets $ 45,423 $ 7,215 $ 52,638 Intangibles 153,056 15,923 168,979 Goodwill (152,833 ) (8,356 ) (161,189 ) Accounts receivable (3,585 ) (2,898 ) (6,483 ) Net other assets/ (liabilities) (65 ) (756 ) (821 ) Current liabilities (13,348 ) (2,177 ) (15,525 ) Net deferred tax liabilities (19,006 ) (11,854 ) (30,860 ) Total purchase price allocation $ 9,642 $ (2,903 ) $ 6,739 The following table summarizes the completed purchase price allocation by major asset acquired and liabilities assumed for the acquisition of Shred-it: In thousands Shred-it Acquisition Fixed assets $ 219,673 Intangibles 1,108,056 Goodwill 1,180,213 Accounts receivable 113,956 Net other assets/ (liabilities) 16,673 Current liabilities (85,526 ) Net deferred tax liabilities (239,511 ) Total purchase price allocation $ 2,313,534 As of December 31, 2016, purchase accounting has been completed for all of our 2015 acquisitions. Divestitures In Q4 2016, we sold certain assets in the United Kingdom for $0.8 million resulting in a pretax loss of $1.6 million ($1.3 million, net of tax) which is included in SG&A on the Consolidated Statements of Income. Assets and Liabilities Held for Sale As of December 31, 2016, certain of our international operations met the criteria to be classified as held for sale. We recorded a $25.5 million impairment charge in SG&A on the Consolidated Statements of Income to adjust the carrying value of the asset groups to their fair value less estimated costs to sell. The assets and liabilities of the disposal groups are presented in assets held for sale and liabilities held for sale on the consolidated balance sheet. The following table presents information related to the major classes of assets and liabilities that were classified as held for sale on the Consolidated Balance Sheet at December 31, 2016: In thousands Accounts receivable $ 2,556 Inventory 223 Prepaid expenses 271 Fixed assets 4,915 Goodwill 80 Intangibles 753 Other assets 336 Assets held for sale $ 9,134 Current portion of l-t debt $ 998 Account payable 928 Accrued liabilities 605 Other current liabilities 1 Deferred income taxes 326 Liabilities held for sale $ 2,858 We determined that |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | PART II NOTE 4 – 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 and non-performance risk has been considered in the fair value measurements noted below. There were no movements of items between fair value hierarchies. The following table summarizes the bases used to measure financial assets and liabilities that are carried at fair value on a recurring basis in the Consolidated Balance Sheets: In thousands Fair Value Measurements Using Total as of December 31, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Assets: Short-term investments $ 62 $ 62 $ — $ — Derivative financial instruments 816 — 816 — Total assets $ 878 $ 62 $ 816 $ — Liabilities: Contingent consideration $ 24,119 $ — $ — $ 24,119 Total liabilities $ 24,119 $ — $ — $ 24,119 In thousands Fair Value Measurements Using Total as of December 31, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Assets: Short-term investments $ 69 $ 69 $ — $ — Derivative financial instruments 1,207 — 1,207 — Total assets $ 1,276 $ 69 $ 1,207 $ — Liabilities: Contingent consideration $ 25,390 $ — $ — $ 25,390 Total liabilities $ 25,390 $ — $ — $ 25,390 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 $0.8 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, 2016. The objective of the swap is to offset the foreign exchange risk to the U.S. dollar equivalent cash outflows for our Canadian subsidiary. Our contingent consideration liabilities are recorded using Level 3 inputs and were $24.1 million as of December 31, 2016, of which $8.1 million was classified as current liabilities. Contingent consideration liabilities were $25.4 million at December 31, 2015, of which $9.1 million was classified as current liabilities. 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 payment outcomes. 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 $25.4 million at December 31, 2016. Contingent consideration liabilities are reassessed each reporting period and are reflected on the Consolidated Balance Sheets as part of Other current liabilities and Other liabilities. Changes to contingent consideration are reflected in the table below: In thousands Contingent consideration at January 1, 2016 $ 25,390 Increases due to acquisitions 988 Decrease due to payments (3,057 ) Changes due to foreign currency fluctuations 2,849 Changes in fair value reflected in selling, general, and administrative expenses (2,051 ) Contingent consideration at December 31, 2016 $ 24,119 Fair Value of Debt: At December 31, 2016, the fair value of the Company’s debt obligations was estimated, using Level 2 inputs, at $2.97 billion compared to a carrying amount of $2.96 billion. At December 31, 2015, the fair value of the Company’s debt obligations was estimated, using Level 2 inputs, at $3.22 billion compared to a carrying amount of $3.21 billion. The fair values were estimated using an income approach by applying market interest rates for comparable instruments. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 5 – INCOME TAXES The U.S. and International components of income before income taxes consisted of the following for the years ended December 31, 2016, 2015 and 2014: In thousands 2016 2015 2014 United States $ 381,100 $ 378,815 $ 441,029 Foreign (52,955 ) 32,092 46,539 Total income before income taxes $ 328,145 $ 410,907 $ 487,568 Significant components of our income tax expense for the years ended December 31, 2016, 2015 and 2014 are as follows In thousands 2016 2015 2014 Current United States - federal $ 102,050 $ 105,941 $ 118,217 United States - state and local 11,615 15,544 13,023 Foreign 10,601 16,512 14,930 124,266 137,997 146,170 Deferred United States - federal 19,052 23,762 29,730 United States - state and local (2,466 ) 2,504 948 Foreign (20,606 ) (21,369 ) (15,339 ) Foreign - changes in statutory rates — — (2,087 ) (4,020 ) 4,897 13,252 Total provision $ 120,246 $ 142,894 $ 159,422 A reconciliation of the income tax provision computed at the federal statutory rate to the effective tax rate for the years ended December 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % Effect of: State and local taxes, net of federal tax effect 1.6 % 3.1 % 1.9 % Foreign tax rates 2.1 % (0.4 )% (0.5 )% Change in deferred tax assets from an increase in tax basis of foreign assets — (2.2 )% (1.8 )% Other (2.1 )% (0.7 )% (1.9 )% Effective tax rate 36.6 % 34.8 % 32.7 % Cash payments for income taxes were $111.5 million, $125.1 million, and $128.1 million for the years ended December 31, 2016, 2015 and 2014, respectively. Our deferred tax liabilities and assets at December 31, 2016 and 2015 were as follows: In thousands 2016 2015 Deferred tax liabilities: Property, plant and equipment $ (78,478 ) $ (44,914 ) Goodwill and intangibles (690,387 ) (719,789 ) Other (7,906 ) (5,747 ) Total deferred tax liabilities (776,771 ) (770,450 ) Deferred tax assets: Accrued liabilities 93,706 69,895 Stock based compensation 17,861 74,794 Net operating tax loss carry-forwards 38,254 37,976 Less: valuation allowance (15,392 ) (17,585 ) Total deferred tax assets 134,429 165,080 Net deferred tax liabilities $ (642,342 ) $ (605,370 ) At December 31, 2016, 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 $121.7 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 $38.2 million at December 31, 2016, on which a valuation allowance of $15.4 million was recorded offsetting such tax benefit. 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 $542.2 million at December 31, 2016, 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 the 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, 2016 is $26.7 million. Acquisition activity has contributed to this amount. The amount of unrecognized tax positions that, if recognized, would affect the effective tax rate is approximately $21.4 million. We recognized interest and penalties accrued related to income tax reserves in the amount of $1.3 million and $0.7 million, for the years ended December 31, 2016 and 2015, respectively, as a component of income tax expense. The following table summarizes the changes in unrecognized tax positions during the years ended December 31, 2016 and 2015: In thousands Unrecognized tax positions, January 1, 2015 $ 15,095 Gross increases - tax positions in prior periods 7,239 Gross decreases - tax positions in prior periods (793 ) Gross increases - current period tax positions 5,976 Settlement (200 ) Lapse of statute of limitations (2,375 ) Unrecognized tax positions, December 31, 2015 $ 24,942 Gross increases - tax positions in prior periods 809 Gross increases - current period tax positions 2,876 Settlement (218 ) Lapse of statute of limitations (1,751 ) Unrecognized tax positions, December 31, 2016 $ 26,658 The table above includes amounts that relate to acquired uncertain tax positions. The securities purchase agreement provides that the seller is liable for and has indemnified Stericycle against all income tax liabilities for periods prior to the acquisition. Stericycle will be responsible for unrecognized tax benefits and related interest and penalties for periods after the acquisition. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK BASED COMPENSATION | NOTE 6 – STOCK BASED COMPENSATION At December 31, 2016, we had the following incentive stock 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 Non-statutory Stock Option Plan, which expired in February 2010; • the Employee Stock Purchase Plan ("ESPP"), which our stockholders approved in May 2001. At December 31, 2016, we have reserved a total of 8,054,670 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"), incentive stock options ("ISOs"), and Restricted Stock Units (“RSUs”) intended to qualify under section 422 of the Internal Revenue Code; and the 2000 Plan provides 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; and the 2000 Plan authorized awards to our employees and consultants but not to our officers and 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 8 or 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 1,000,000 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 2016, 2015 and 2014, 89,100 shares, 68,039 shares, and 60,189 shares respectively, were issued through the ESPP. At December 31, 2016, we had 202,364 shares available for issuance under the ESPP plan. Stock Based Compensation Expense: During 2016, 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. The following table presents the total stock-based compensation expense resulting from stock option awards, RSUs, and the ESPP included on the Consolidated Statements of Income: In thousands Years Ended December 31, 2016 2015 2014 Cost of revenues - stock option plan $ 63 $ 92 $ 52 Selling, general and administrative - stock option plan 17,344 18,541 15,214 Selling, general and administrative - RSUs 896 1,484 1,267 Selling, general and administrative - ESPP 2,152 1,633 1,240 Total pre-tax expense $ 20,455 $ 21,750 $ 17,773 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 options with graded vesting is recognized using the straight-line method over the vesting period. Stock option activity for the year ended December 31, 2016, is summarized as follows: Number of Options Weighted Average Exercise Price per Share Outstanding at beginning of year 5,334,803 $ 92.02 Granted 1,100,492 110.26 Exercised (573,799 ) 65.71 Forfeited (339,889 ) 115.07 Canceled or expired (52,875 ) 104.98 Outstanding at December 31, 2016 5,468,732 $ 96.90 Exercisable at December 31, 2016 2,999,940 $ 83.60 At December 31, 2016, there was $38.0 million of total unrecognized compensation expense related to stock options, which The following table sets forth the intrinsic value of options exercised for the years ended December 31: In thousands 2016 2015 2014 Total exercise intrinsic value of options exercised $ 25,974 $ 62,625 $ 65,884 The exercise intrinsic value represents the total pre-tax intrinsic value (the difference between the fair value 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: 2016 2015 2014 Weighted average remaining contractual life of outstanding options (in years) 5.25 5.70 6.10 Total aggregate intrinsic value of outstanding options (in thousands) $ 25,100 $ 162,400 $ 269,900 Weighted average remaining contractual life of exercisable options (in years) 4.40 4.70 5.10 Total aggregate intrinsic value of exercisable options (in thousands) $ 25,100 $ 130,600 $ 178,300 The 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, 2016 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, 2016. Options outstanding and exercisable at December 31, 2016 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 $38.57 - $51.55 688,413 2.54 $ 49.22 688,413 $ 49.22 $52.05 - $85.00 790,945 3.37 74.35 776,730 74.21 $85.02 - $87.04 547,178 5.04 86.25 406,676 86.26 $87.26 - $95.74 112,302 4.98 90.15 98,496 89.79 $95.87 - $95.87 651,362 6.07 95.87 357,219 95.87 $96.11 - $110.14 96,758 7.57 101.37 20,460 101.12 $111.12 - $111.12 847,751 7.10 111.12 325 111.12 $111.20 - $115.54 135,502 6.48 112.19 99,661 112.25 $115.69 - $115.69 660,918 5.12 115.69 268,217 115.69 $115.82 - $141.56 937,603 6.42 129.90 283,743 129.58 $38.57 - $141.56 5,468,732 5.25 $ 96.90 2,999,940 $ 83.60 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, 2016 2015 2014 Stock options granted (shares) 1,100,492 1,056,490 981,583 Weighted average fair value at grant date $ 20.16 $ 22.90 $ 21.31 Assumptions: Expected term (in years) 4.77 4.79 4.76 Expected volatility 18.28 % 16.71 % 17.23 % Expected dividend yield — % — % — % Risk free interest rate 1.21 % 1.47 % 1.53 % Restricted Stock Units: The fair value of 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: 2016 2015 2014 Total aggregate intrinsic value of outstanding units (in thousands) $ 8,847 $ 8,441 $ 8,337 Per share fair value of units granted 106.01 114.27 115.67 A summary of the status of our non-vested RSUs and changes during the year ended December 31, 2016, are as follows: Number of Units Weighted Average Grant Date Fair Value Non-vested at beginning of year 71,451 $ 101.29 Granted 78,237 106.01 Forfeited (34,850 ) 102.25 Non-vested at December 31, 2016 114,838 104.22 At December 31, 2016, there was $7.4 million of total unrecognized compensation expense related to RSUs, which is expected to be recognized over a weighted average period of 2.86 years. There were no units that vested during the years ended December 31, 2016 and 2015. The fair value of units that vested during the year ended December 31, 2014 was $2.0 million. |
PREFERRED STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
PREFERRED STOCK | NOTE 7 – PREFERRED STOCK At December 31, 2016, we had 1,000,000 authorized shares of preferred stock and 726,500 shares issued and outstanding of mandatory convertible preferred stock. At December 31 2015, we had 1,000,000 authorized shares of preferred stock and 770,000 shares issued and outstanding. Series A Mandatory Convertible Preferred Stock Offering: On September 15, 2015, we completed a registered public offering of 7,700,000 depositary shares, each representing a 1/10th interest in a share of our 5.25% Series A mandatory convertible preferred stock, par value $0.01 per share (the "Series A Preferred Stock"), at a public offering price of $100.00 per depository share for total gross proceeds of $770.0 million. Unless earlier converted or redeemed, each share of the Series A Preferred Stock will automatically convert into between 5.8716 and 7.3394 shares of our common stock, subject to anti-dilution and other adjustments, on the mandatory conversion date, which is expected to be September 15, 2018. The number of shares of our common stock issuable on conversion will be determined based on the volume-weighted average price of our common stock over the 20 trading day period commencing on and including the 23rd scheduled trading day prior to September 15, 2018. Subject to certain restrictions, at any time prior to September 15, 2018, holders of the Series A Preferred Stock may elect to convert all or a portion of their shares into common stock at the minimum conversion rate of 5.8716 shares of common stock per share of Series A Preferred Stock, subject to adjustment. Dividends on shares of the Series A Preferred Stock are payable on a cumulative basis when, as and if declared by our board of directors, or an authorized committee thereof, at an annual rate of 5.25% on the liquidation preference of $1,000 per share (and, correspondingly, $100.00 per share with respect to the depositary shares). The dividends may be payable in cash, or subject to certain limitations, in shares of our common stock, or any combination of cash and shares of our common stock, on March 15, June 15, September 15 and December 15 of each year, commencing on December 15, 2015, and to, and including, September 15, 2018. We declared and paid dividends of $39.4 million to the preferred stock shareholders during 2016. The following table provides information about our repurchases of depository shares of mandatory convertible preferred stock during the year ended December 31, 2016: Number of Depository Shares Repurchased Amount Paid for Repurchases Average Price Paid per Share (in thousands) Three months ended June 30, 2016 65,000 $ 5,025 $ 77.31 Three months ended September 30, 2016 265,000 19,238 72.60 Three months ended December 31, 2016 105,000 6,647 63.30 Total 435,000 $ 30,910 $ 71.06 Repurchases of our mandatory convertible preferred stock resulted in a $11.3 million increase to Retained earnings, because we redeemed the preferred stock at a discount. The 435,000 depository shares are equivalent to 43,500 units of preferred stock. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | NOTE 8 – 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, RSUs, and the assumed conversion of mandatory convertible preferred stock. The effect of potentially dilutive securities is reflected in diluted earnings per share by application of the "treasury stock method" for outstanding restricted stock awards and stock options. 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. For the issue of the mandatory convertible preferred stock, we use the "if-converted method." Under the if-converted method, the preferred dividend applicable to convertible preferred stock is added back as an adjustment to the numerator. The mandatory convertible preferred shares are assumed to be converted to common shares at the beginning of the period or, if later, at the time of issuance, and the resulting common shares are included in the denominator. In applying the if-converted method, conversion shall not be assumed for purposes of computing diluted EPS if the effect would be anti-dilutive. The numerator is also adjusted for any premium or discount arising from redemption of the preferred stock. The following table sets forth the computation of basic and diluted earnings per share: In thousands, except share and per share data Years Ended December 31, 2016 2015 2014 Numerator: Net income attributable to Stericycle, Inc. $ 206,359 $ 267,046 $ 326,456 Mandatory convertible preferred stock dividend 39,414 10,106 — Gain on repurchase of preferred stock (11,285 ) — — Numerator for basic earnings per share attributable to Stericycle, Inc. common shareholders 178,230 256,940 326,456 Denominator: Denominator for basic earnings per share - weighted average shares 84,932,402 84,944,841 84,932,792 Effect of diluted securities: Employee stock options 677,817 1,217,768 1,300,820 Mandatory convertible preferred stock (1) — — — Denominator for diluted earnings per share - adjusted weighted average shares and after assumed exercises 85,610,219 86,162,609 86,233,612 Earnings per share – Basic $ 2.10 $ 3.02 $ 3.84 Earnings per share – Diluted $ 2.08 $ 2.98 $ 3.79 (1) In 2016, the weighted average common shares issuable upon the assumed conversion of the mandatory convertible preferred stock totaling 5,528,257 shares were excluded from the computation of diluted earnings per share as such conversion would have been anti-dilutive. In 2016, 2015 and 2014, options to purchase 3,411,370 shares, 818,093 shares, and 830,755 shares, respectively, at exercise prices of $83.49-$141.56, $117.09-$141.56, and $105.12-$132.95 were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. In 2016, 48,042 RSUs were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 9 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table sets forth the changes in the components of accumulated other comprehensive income for 2016, 2015 and 2014: In thousands Currency Translation Adjustments Unrealized Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Income/ (Loss) Beginning balance at January 1, 2014 $ (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 ) Period change (140,809 ) (3,403 ) (144,212 ) Ending balance at December 31, 2015 $ (276,040 ) $ (6,591 ) $ (282,631 ) Period change (86,340 ) 1,328 (85,012 ) Ending balance at December 31, 2016 $ (362,380 ) $ (5,263 ) $ (367,643 ) During the years ended December 31, 2016, 2015 and 2014, the net tax impact of the unrealized gains/ (losses) on cash flow hedges in accumulated other comprehensive income was $(0.8) million, $2.2 million, and $0.6 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, 2016 | |
Property Plant And Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 10 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at December 31, 2016 and 2015 consisted of the following: In thousands 2016 2015 Land and improvements $ 66,335 $ 65,621 Building and improvements 197,608 166,874 Machinery and equipment 314,288 314,252 Vehicles 173,169 136,379 Containers 226,733 190,454 Office equipment and furniture 146,780 117,632 Software 38,886 46,979 Construction in progress 55,310 53,430 Total property, plant & equipment 1,219,109 1,091,621 Less: accumulated depreciation (495,215 ) (426,019 ) Property, plant and equipment, net $ 723,894 $ 665,602 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 11 – GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill: As discussed in Note 15 – Segment Reporting, we changed the composition of our operating segments. Due to these changes, part of our Domestic Regulated Waste and Compliance Services operating segment was combined with the legacy Domestic Regulated Recall and Returns Management Services operating segment to form a new operating segment, Domestic Communication and Related Services (“Domestic CRS”) in Q2 2016 and the Domestic Regulated Waste and Compliance Solutions operating segment (“Domestic RCS") will now become Domestic and Canada Regulated Waste and Compliance services. The operations in Canada had previously been reported as part of the International RCS operating segment. In Q4, we determined that our former International RCS reporting unit should be disaggregated into three new reporting units for goodwill impairment testing purposes which is one level below the operating segment (referred to as a “component”). In addition, the four components of the Domestic and Canada RCS operating segment will now be the reporting units. This was primarily a result of some of the business and economic challenges we have recently faced in M&I and internationally. As a result of the changes, g Due to the establishment of the new reporting units in Q4 2016 and the change in our annual goodwill , we performed a goodwill impairment evaluation for all reporting units as of October 1, 2016. There was no impairment of goodwill because the fair value of those reporting units exceeded their carrying values. We also tested the former reporting units for goodwill impairment immediately prior to the establishment of the new reporting units and there was no impairment of goodwill. The changes in the carrying amount of goodwill since January 1, 2015, by reportable segment and for the “Other” category, were as follows: In thousands Domestic and Canada RCS International RCS Other Total Balance at January 1, 2015 (1) $ 1,638,529 $ 521,338 $ 258,965 $ 2,418,832 Goodwill acquired during year 1,231,219 192,737 26,994 1,450,950 Purchase accounting adjustments (8,072 ) (17,221 ) (2,984 ) (28,277 ) Other changes — (440 ) — (440 ) Changes due to foreign currency fluctuations (18,965 ) (63,923 ) — (82,888 ) Balance at December 31, 2015 2,842,711 632,491 282,975 3,758,177 Goodwill acquired during year 41,517 8,381 2,871 52,769 Purchase accounting adjustments (77,247 ) (78,894 ) (5,048 ) (161,189 ) Goodwill write-offs related to disposition and assets held for sale — (7,486 ) — (7,486 ) Changes due to foreign currency fluctuations 4,820 (56,071 ) — (51,251 ) Balance at December 31, 2016 $ 2,811,801 $ 498,421 $ 280,798 $ 3,591,020 (1) The January 1, 2015 balances have been recast to reflect the new organizational structure. Domestic and Canada RCS goodwill from the International RCS and Other includes resulting from the changes described. Other Intangible Assets: At December 31, 2016 and 2015, the values of other intangible assets were as follows: In thousands 2016 2015 Gross Carrying Amount Accumulated Amortization Net Value Gross Carrying Amount Accumulated Amortization Net Value Amortizable intangibles: Customer relationships $ 1,553,398 $ 261,306 $ 1,292,092 $ 1,304,388 $ 144,020 $ 1,160,368 Covenants not-to-compete 9,491 6,371 3,120 6,878 5,141 1,737 Tradenames 5,708 1,365 4,343 3,819 948 2,871 Other 19,076 2,526 16,550 18,902 916 17,986 Indefinite lived intangibles: Operating permits 229,396 — 229,396 233,101 — 233,101 Tradenames 316,472 — 316,472 426,498 — 426,498 Total $ 2,133,541 $ 271,568 $ 1,861,973 $ 1,993,586 $ 151,025 $ 1,842,561 The changes in the carrying amount of intangible assets since January 1, 2015 were as follows: In thousands Total Balance as of January 1, 2015 $ 909,645 Intangible assets acquired during the year 1,016,775 Valuation adjustments for prior year acquisitions 35,241 Impairments during the year (4,177 ) Amortization during the year (45,498 ) Changes due to foreign currency fluctuations (69,425 ) Balance as of December 31, 2015 1,842,561 Intangible assets acquired during the year 35,564 Valuation adjustments for prior year acquisitions 168,979 Intangible write-offs due to disposition and assets held for sale (15,961 ) Impairments during the year (1,406 ) Amortization during the year (129,300 ) Changes due to foreign currency fluctuations (38,464 ) Balance at December 31, 2016 $ 1,861,973 Our indefinite-lived intangible assets include permits and certain tradenames. We have determined that our permits and certain tradenames have indefinite lives due to our ability to renew them with minimal additional cost, and therefore these are not amortized. We changed our annual impairment testing date for indefinite-lived intangibles from December 31 to October 1 as described in Note 2 – Summary of Significant Accounting Policies. In 2016 and 2015, we recognized $1.4 million and $4.2 million, respectively, of impairment charge as part of SG&A on the Consolidated Statements of Income as a result of the testing performed. Our finite-lived intangible assets are amortized over their useful lives. We have determined that our customer relationships have useful lives ranging from 5 to 40 years based upon the type of customer and a weighted average remaining useful life of 15.2 years. We have covenants not-to-compete intangibles with useful lives ranging from 5 to 14 years and a weighted average remaining useful life of 3.5 years. We have tradename intangibles with useful lives ranging from 10 to 40 years and a weighted average remaining useful life of 17.6 years. Other intangibles mainly consist of landfill air rights with a weighted average remaining useful life of 17.4 years. During the years ended December 31, 2016, 2015 and 2014, the aggregate intangible amortization expense was $129.3 million, $45.5 million and $32.7 million, respectively. The estimated amortization expense for each of the next five years is as follows for the years ended December 31: In thousands 2017 $ 116,265 2018 116,127 2019 115,738 2020 115,045 2021 113,919 The estimates for amortization expense noted above are based upon foreign exchange rates at December 31, 2016. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
ACCRUED LIABILITIES | NOTE 12 – ACCRUED LIABILITIES Accrued liabilities at December 31, 2016 and 2015 consisted of the following items: In thousands 2016 2015 Accrued compensation $ 64,586 $ 62,721 Accrued insurance 53,637 43,390 Accrued taxes 18,289 27,363 Accrued interest 14,123 13,829 Accrued professional services liabilities 10,109 6,948 Accrued liabilities - other 67,782 43,078 Total accrued liabilities $ 228,526 $ 197,329 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 13 – DEBT Long-term debt consisted of the following at December 31: In thousands 2016 2015 Obligations under capital leases $ 11,121 $ 15,024 $1.2 billion senior credit facility weighted average rate 2.14%, due in 2019 407,119 353,763 $1.0 billion term loan weighted average rate 2.07%, due in 2020 1,000,000 1,250,000 $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 $150 million private placement notes 2.89%, due in 2021 150,000 150,000 $125 million private placement notes 3.26%, due in 2022 125,000 125,000 $200 million private placement notes 2.72%, due in 2022 200,000 200,000 $100 million private placement notes 2.79%, due in 2023 100,000 100,000 $150 million private placement notes 3.18%, due in 2023 150,000 150,000 Promissory notes and deferred consideration weighted average rate of 2.43% and weighted average maturity of 3.2 years 191,648 239,731 Foreign bank debt weighted average rate 6.51% and weighted average maturity of 2.1 years 99,428 105,530 Total debt 2,959,316 3,214,048 Less: current portion of total debt 72,822 161,409 Less: unamortized debt issuance costs 9,179 12,287 Long-term portion of total debt $ 2,877,315 $ 3,040,352 Our senior credit facility, term loan, and the private placement notes all require us to comply with the same financial, reporting and other covenants and restrictions, including a restriction on dividend payments. At December 31, 2016, we were in compliance with all of our financial debt covenants. Our senior credit facility, term loan, and the private placement notes rank pari passu to each other and all other unsecured debt obligations. At December 31, 2016 and 2015, we had $138.0 million and $160.4 million, respectively, committed to outstanding letters of credit under our senior credit facility. The unused portion of the revolving credit facility was $654.9 million and $685.8 million at December 31, 2016 and 2015, respectively. We classified our $175.0 million private placement notes that mature in October 2017 as long-term debt due to our intent to settle this obligation by borrowing on the available and unused capacity on our $1.2 billion senior credit facility due in 2019. Payments due on long-term debt, excluding capital lease obligations, during each of the five years subsequent to December 31, 2016 are as follows: In thousands 2017 $ 70,017 2018 208,328 2019 1,044,598 2020 878,011 2021 161,474 Thereafter 585,767 $ 2,948,195 During the years ended December 31, 2016, 2015 and 2014, we paid interest of $88.8 million, $68.0 million, and $57.8 million for the, respectively. Property under capital leases included within property, plant and equipment on the Consolidated Balance S heets In thousands 2016 2015 Land $ 151 $ 157 Buildings 775 804 Machinery and equipment 6,634 6,105 Vehicles 9,907 15,925 Less: accumulated depreciation (5,523 ) (7,148 ) $ 11,944 $ 15,843 Amortization related to these capital leases is included within depreciation expense. Minimum future lease payments under capital leases are as follows: In thousands 2017 $ 3,692 2018 2,759 2019 2,614 2020 2,093 2021 2,119 Thereafter 106 Total minimum lease payments 13,383 Less: amounts representing interest (2,262 ) Present value of net minimum lease payments 11,121 Less: current portion included in current portion of long-term debt (2,805 ) Long-term obligations under capital leases $ 8,316 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14 –COMMITMENTS AND CONTINGENCIES 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 on the Consolidated Balance Sheets in current liabilities within Accrued liabilities and in noncurrent liabilities with Other liabilities. At December 31, 2016 and 2015, the total environmental remediation liabilities recorded were $30.9 million and $30.8 million of which $2.4 million and $2.1 million were presented in Accrued liabilities on the Consolidated Balance Sheets, respectively. We project costs over approximately 30 years Operating 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 Operating lease obligations expire at various dates with the latest maturity in 2035. The leases for most of the properties contain renewal provisions. During the years ended December 31, 2016, 2015 and 2014, rent expense was $181.6 million, $139.0 million, and $111.5 million, respectively, included within COR & SG&A on the Consolidated Statements of Income. Minimum future rental payments under non-cancelable operating leases that have initial or remaining terms in excess of one year at December 31, 2016 for each of the next five years and in the aggregate are as follows: In thousands 2017 $ 116,473 2018 96,215 2019 78,587 2020 59,571 2021 43,858 Thereafter 63,383 $ 458,087 Unconditional Purchase Commitments The Company has entered into non-cancelable arrangements with third-parties, primarily related to information technology products and services. As of December 31, 2016, future payments under these contractual obligations, not recognized in the Consolidated Balance Sheets, were as follows: In thousands 2017 $ 31,840 2018 16,370 2019 15,989 2020 15,855 2021 — Thereafter — $ 80,054 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 15 – SEGMENT REPORTING In 2016, we made certain changes to our organizational structure to integrate the domestic and international operations of our 2015 Shred-it acquisition. During Q2 2016, we also changed the composition of our operating segments to further align our compliance and communication services. Due to this change, part of our Domestic Regulated Waste and Compliance Services operating segment was combined with the legacy Domestic Regulated Recall and Returns Management Services operating segment to form a new operating segment, Domestic Communication and Related Services (“Domestic CRS”). In Q4 2016, we made an additional change to our organizational structure and management reporting. As a result of these changes, our Domestic Regulated Waste and Compliance Services (“Domestic RCS”) segment will now also be responsible for the operations in Canada. The operations in Canada had previously been reported as part of the International RCS operating segment. As a result of these changes our Domestic RCS operating segment will now become (“Domestic and Canada RCS”). Domestic CRS does not meet the quantitative criteria to be a separate reportable segment and therefore is included in All other. Beginning in Q4 2016, costs related to our corporate headquarter functions are also included in All other. Our three operating segments are: • Domestic and Canada RCS, • Domestic CRS, and • International RCS. Our Domestic and Canada, and International Regulated Waste and Compliance Services segments include medical waste disposal, pharmaceutical waste disposal, hazardous waste management, sustainability solutions for expired or unused inventory, secure information destruction of documents and e-media, training and consulting through our Steri-Safe® and Clinical Services programs, and other regulatory compliance services. Our Domestic Communication and Related Services segment consists of inbound/outbound communication, automated patient reminders, online scheduling, notifications, product retrievals, product returns, and quality audits. Our two reportable segments are: • Domestic and Canada RCS, • International RCS. In connection with changes made to our management reporting to align with the new operating segments, we have also changed our measure of segment profit to earnings before interest, tax and amortization (“EBITA”), adjusted for various items. As a result of these changes in segment reporting, all historical segment information has been revised to conform to the new presentation. The following tables show financial information for the Company's reportable segments: In thousands Years Ended December 31, 2016 2015 2014 Revenues Domestic and Canada RCS $ 2,508,865 $ 1,999,196 $ 1,667,353 International RCS 751,677 716,771 663,889 All other 301,800 269,941 224,359 Total $ 3,562,342 $ 2,985,908 $ 2,555,601 Gross Profit Domestic and Canada RCS $ 1,124,815 $ 912,220 $ 772,518 International RCS 228,484 230,323 216,377 All other 148,655 123,642 105,516 Total $ 1,501,954 $ 1,266,185 $ 1,094,411 Amortization Domestic and Canada RCS $ 95,640 $ 22,714 $ 12,728 International RCS 25,730 14,926 13,298 All other 7,930 7,858 6,666 Total $ 129,300 $ 45,498 $ 32,692 EBITA Domestic and Canada RCS $ 688,161 $ 631,395 $ 594,204 International RCS 58,027 89,064 98,494 All other (18,564 ) (12,982 ) (44,683 ) Total $ 727,624 $ 707,477 $ 648,015 Total Assets Domestic and Canada RCS $ 5,094,107 $ 4,913,485 $ 2,616,751 International RCS 1,357,047 1,636,382 1,291,671 All other 528,907 515,296 464,880 Total $ 6,980,061 $ 7,065,163 $ 4,373,302 The following table reconciles the Company's primary measure of segment profitability (EBITA) to income from operations: In thousands Years Ended December 31, 2016 2015 2014 Domestic and Canada RCS EBITA $ 688,161 $ 631,395 $ 594,204 International RCS EBITA 58,027 89,064 98,494 Subtotal reportable segments 746,188 720,459 692,698 All other EBITA (18,564 ) (12,982 ) (44,683 ) Amortization expenses (129,300 ) (45,498 ) (32,692 ) Acquisition expenses (9,646 ) (39,138 ) (13,333 ) Integration expenses (87,587 ) (51,689 ) (25,968 ) Litigation and professional services expenses (12,904 ) (59,651 ) (6,574 ) Change in fair value of contingent consideration 2,051 640 1,452 Restructuring and plant conversion expenses (3,986 ) (22,748 ) (14,564 ) Contract exit costs (24,005 ) — — Asset impairment charges (28,472 ) (1,781 ) — Income from operations $ 433,775 $ 487,612 $ 556,336 The following table shows consolidated revenue by service: In thousands Years Ended December 31, 2016 2015 2014 Regulated Waste and Compliance Services $ 2,061,416 $ 2,064,866 $ 1,955,761 Secure Information Destruction Services 747,510 178,085 — Communication and Related Services 370,500 334,142 268,565 Manufacturing and Industrial Services 382,916 408,815 331,275 Revenues $ 3,562,342 $ 2,985,908 $ 2,555,601 Geographic Data The following table shows consolidated revenue and property, plant and equipment split geographically: In thousands Years Ended December 31, 2016 2015 2014 Revenues United States $ 2,657,452 $ 2,165,030 $ 1,788,390 International: Europe 485,975 441,231 407,082 Other international countries 418,915 379,647 360,129 Total international 904,890 820,878 767,211 Total $ 3,562,342 $ 2,985,908 $ 2,555,601 Long-Lived Assets United States $ 499,070 $ 434,202 $ 284,788 International: Europe 89,007 95,771 70,621 Other international countries 135,817 135,629 104,999 Total international 224,824 231,400 175,620 Total $ 723,894 $ 665,602 $ 460,408 |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLAN | NOTE 16 – EMPLOYEE BENEFIT PLAN We have two 401(k) defined contribution retirement savings plans (the “plan(s)”), one of which was part of the recent Shred-it acquisition, covering substantially all domestic employees. The following describes our two domestic plans: • Each participant may elect to defer a portion of his or her compensation subject to certain limitations. The Company may contribute up to 50% of compensation contributed to the plan by each employee up to a maximum of $2,000. During the years ended December 31, 2016, 2015 and 2014, our contributions were $5.9 million, $4.8 million, and $3.6 million, respectively. • Each participant may elect to defer a portion of his or her compensation subject to certain limitations. The Company may contribute up to 100% of the first 3% of the employee's eligible earnings, plus up to 50% of the next 2% of the employee's eligible earnings, subject to IRS limits. Our contributions for the years ended December 31, 2016 and 2015 were $3.3 million and $0.9 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. During the years ended December 31, 2016, 2015 and 2014, total contributions made by the Company for these plans were approximately $2.6 million, $2.1 million, and $1.9 million, respectively. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | NOTE 17 – LEGAL PROCEEDINGS We operate in a highly regulated industry and must deal with regulatory inquiries or investigations from time to time that may be initiated for a variety of reasons. We are also involved in a variety of civil litigation from time to time. The Company establishes an accrued liability for loss contingencies related to legal and regulatory matters when the loss is both probable and reasonably estimable. If a loss is not probable or a probable loss is not reasonably estimable, no liability is recorded. These accruals represent management's best estimate of probable losses and, in such cases, there may be an exposure to loss in excess of the amounts accrued. Legal and regulatory matters inherently involve significant uncertainties based on, among other factors, the stage of the proceedings, developments in the applicable facts or law, and the unpredictability of the ultimate determination of the merits of any claim, any defenses the Company may assert against that claim and the amount of any damages that may be awarded. The Company's accrued liabilities for loss contingencies related to legal and regulatory matters may change in the future as a result of new developments, including, but not limited to, the occurrence of new legal matters, changes in the law or regulatory environment, adverse or favorable rulings, newly discovered facts relevant to the matter, or changes in the strategy for the matter. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. 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 arose out of the qui tam (or “whistle blower”) action captioned United States of America ex rel. Jennifer D. Perez v. Stericycle, Inc., Case No. 1:08-cv-2390 which was settled in the fourth quarter of 2015 as previously disclosed. Following the filing of the Pennsylvania class action complaint, we were served with class action complaints filed in federal and state courts in several jurisdictions. 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 granted our Motion to Transfer these related actions to the United States District Court for the Northern District of Illinois for centralized pretrial proceedings (the “MDL Action”). On December 10, 2013, we filed our answer to the Amended Consolidated Class Action Complaint in the MDL Action, generally denying the allegations therein. Plaintiffs subsequently filed a Second Amended Consolidated Complaint on March 8, 2016, and we filed an answer to that pleading on March 25, 2016, generally denying the allegations therein and asserting a variety of affirmative defenses. Plaintiffs filed a motion for class certification on January 29, 2016. On February 16, 2017, the Court entered an order granting Plaintiffs’ motion for class certification. The Court certified a class of “[a]ll persons and entities that, between March 8, 2003 through the date of trial resided in the United States (except Washington and Alaska), were identified by Stericycle as ‘Small Quantity’ or ‘SQ’ customer, and were charged and paid more than their contractually-agreed price for Stericycle’s medical waste disposal good and services pursuant to Stericycle’s automated price increase policy. Governmental entities whose claims were asserted in United States ex rel. Perez v. Stericycle Inc. shall be excluded from the class.” The case remains ongoing. We believe that we have operated in accordance with the terms of our customer contracts and that these complaints are without merit. We will continue to vigorously defend ourselves against each of these lawsuits. We have not accrued any amounts in respect of these class action 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) we do not know whether the class currently certified by the Court will remain certified through trial and judgment, or whether or how the class definition might be altered, (iii) we do not know how many individual plaintiffs will be determined to meet the court’s definition of the class, (iv) we do not know what the ultimate disposition on the merits of any class claim as well as our defenses to that claim may be, and (v) in our judgment, the factual and legal allegations asserted by plaintiffs are sufficiently unique that we are unable to identify other proceedings with circumstances sufficiently comparable to provide guidance in making estimates. Securities Class Action Lawsuit. On July 11, 2016, two purported stockholders filed a putative class action complaint in the U.S. District Court for the Northern District of Illinois. The plaintiffs purported to sue for themselves and on behalf of all purchasers of our publicly traded securities between February 7, 2013 and April 28, 2016, inclusive, and all those who purchased securities in our public offering of depositary shares, each representing a 1/10th interest in a share of our mandatory convertible preferred stock, on or around September 15, 2015. The complaint named as defendants the Company, our directors and certain of our current and former officers, and certain of the underwriters in the public offering. The complaint purports to assert claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as SEC Rule 10b-5, promulgated thereunder. The complaint alleges, among other things, that the Company imposed unauthorized or excessive price increases and other charges on its customers in breach of its contracts, and that defendants failed to disclose those alleged practices in public filings and other statements issued during the proposed class period beginning February 7, 2013 and ending April 28, 2016. On August 4, 2016, plaintiffs filed an Amended Complaint that purports to assert additional misrepresentations in public statements through July 28, 2016, and therefore to change the putative class period to the period from February 7, 2013 to July 28, 2016, inclusive. On October 21, 2016, plaintiffs filed a Corrected Amended Complaint adding the Company as a named defendant in plaintiff’s claim under Section 11 of the Securities Act, which had previously been asserted only against the Underwriters and certain officers and directors. On November 1, 2016, the Court appointed the Public Employees’ Retirement System of Mississippi and the Arkansas Teacher Retirement System as Lead Plaintiffs and their counsel as Lead Counsel. On February 1, 2017, Lead Plaintiff filed a Consolidated Amended Complaint with additional purported factual material supporting the same legal claims from the prior complaints. Under the Court’s current schedule, defendants have until April 1, 2017 to answer or file a motion to dismiss the action. We intend to vigorously defend ourselves against this lawsuit. We have not accrued any amounts in respect of this lawsuit, 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) we do not know whether the court will certify any class of plaintiffs or, if any class is certified, how the class would be defined, and (iii) in our judgment, the factual and legal allegations asserted by plaintiffs are sufficiently unique that we are unable to identify other proceedings with circumstances sufficiently comparable to provide guidance in making estimates. Shareholder Derivative Lawsuit. On September 1, 2016, a purported stockholder filed a putative derivative action complaint in the Circuit Court of Cook County, Illinois against certain officers and directors of the Company, naming the Company as nominal defendant. The complaint alleges that defendants breached their fiduciary duties to the Company and its stockholders by causing the Company to allegedly overcharge certain customers in breach of those customers’ contracts, otherwise provide unsatisfactory customer service and injure customer relationships, and make materially false and misleading statements and omissions regarding the Company’s business, operational and compliance policies between February 7, 2013 and the present. On March 1, 2017, another purported stockholder filed a putative derivative action complaint containing substantially similar allegations in the Circuit Court of Cook County, Illinois against certain officers and directors of the Company, naming the Company as nominal defendant. The Company notes, among other things, that both of these filings are in violation of the Company’s Bylaws, which require any such actions to be brought in a court in Delaware. None of the defendants in either of these derivative actions has been served with the applicable complaint. 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 and (ii) in our judgment, the factual and legal allegations asserted by plaintiffs are sufficiently unique that we are unable to identify other proceedings with circumstances sufficiently comparable to provide guidance in making estimates. Shareholder Demand Letter. On October 18, 2016, the Company received a letter from an attorney purporting to represent a current stockholder of the Company demanding, pursuant to Del. Ct. Ch. R. 23.1, that the Company’s Board of Directors take action to remedy alleged breaches of fiduciary duties by certain officers and directors of the Company. The factual allegations set forth in the letter are similar to those asserted in the Securities Class Action Lawsuit and the Shareholder Derivative Lawsuit. The letter asserts breaches of fiduciary duty in connection with the management, operation and oversight of the Company’s business and in connection with alleged false, misleading and/or incomplete statements regarding the Company’s business practices. The Company’s Board of Directors has constituted a Special Demand Review Committee to investigate the claims made in the demand letter, which investigation is ongoing. TCPA Lawsuit. On June 3, 2016, a plaintiff filed a putative class action, captioned Ibrahim v. Stericycle, Inc., No. 16-cv-4294 (N.D. Ill.), against us and our wholly-owned subsidiary, Stericycle Communication Solutions, Inc., under the Telephone Consumer Protection Act (“TCPA”), asserting that the defendants called plaintiff and others in violation of that statute. Plaintiff challenges our use of pre-recorded messages that urge the owners of recalled products to return or obtain repairs for those products. Plaintiff seeks certification of two nationwide classes. One class includes people who received one or more cellular telephone calls from Stericycle featuring a prerecorded or artificial voice message relating to a product recall, where the called party was not the same individual who, according to Stericycle’s records, was the intended recipient of the call. The second class includes people who received one or more cellular telephone calls from Stericycle featuring a prerecorded or artificial voice message relating to a product recall after such person had communicated to Stericycle that Stericycle did not have consent to make any such calls to their cellular telephone number. On July 28, 2016, we answered the complaint, denying the material allegations and raising certain affirmative defenses. Among the asserted defenses is the “emergency” exception to the TCPA, which exempts calls made to promote public health and safety. On December 19, 2016, before any substantial discovery in the case, we filed a motion for summary judgment primarily on the basis of the “emergency” exception. On February 1, 2017, plaintiff responded to our motion by requesting additional discovery. The court has responded that it will permit some but not all of the requested discovery. We have not accrued any amounts in respect of this lawsuit, 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) we do not know whether the court will certify any class of plaintiffs or, if any class is certified, how the class would be defined, and (iii) in our judgment, the factual and legal allegations asserted by plaintiff are sufficiently unique that we are unable to identify other proceedings with circumstances sufficiently comparable to provide guidance in making estimates. Environmental Matters. Our Environmental Solutions business is 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, we frequently become 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 us or by other parties to which either we or the prior owners of certain of its facilities shipped wastes. From time to time, we may be subject to fines or penalties in regulatory proceedings relating primarily to waste treatment, storage or disposal facilities. We believe that the fines or other penalties that we 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 February 29, 2016, we entered into a statute of limitations tolling agreement with the United States Attorney’s Office for the District of Utah relating to that Office’s investigation of the same facts underlying the notice of violation (the “NOV”) issued by the State of Utah Division of Air Quality (the “DAQ”) that resulted in our December 2014 settlement with the DAQ that we have previously disclosed. The U.S. Attorney’s Office is investigating whether the matters forming the basis of the NOV constitute violations of the Clean Air Act and other federal statutes. On February 7, 2017, we extended the tolling agreement to April 30, 2017. Under the tolling agreement as extended, the period from March 1, 2016 through April 30, 2017 will be excluded from any calculation of time for the purpose of determining the statute of limitations concerning any charges that we violated federal statutes. The agreement does not constitute an admission of guilt or wrongdoing on our part and cannot be construed as a waiver of any other rights or defenses that we may have in any resulting action or proceeding. We will continue to cooperate with the investigation. On April 8, 2016, the State of Missouri through the Missouri Department of Natural Resources (“MDNR”) filed an Amended Verified Petition in the Circuit Court of the City of St. Louis, Missouri alleging that we had violated certain provisions of the Solid Waste Permit relating to our facility located in St. Louis by failing to treat or transport certain waste within 24 hours or to transfer certain waste within 24 hours. The Petition also alleged that certain record keeping requirements had not been met. On May 27, 2016 a First Amended Verified Petition was filed with essentially the same allegations. MDNR originally filed its Petition on October 16, 2014. On October 31, 2016, we entered into a Consent Judgment that requires us to timely treat or transfer waste received, to keep proper records and to pay a civil penalty of $130,000. On November 22, 2016, we paid the civil penalty of $130,000. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 18 – SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following table summarizes our unaudited consolidated quarterly results of operations as reported for 2016 and 2015: In thousands, except per share data First Quarter 2016 Second Quarter 2016 Third Quarter 2016 Fourth Quarter 2016 Year 2016 Revenues $ 874,181 $ 891,621 $ 890,144 $ 906,396 $ 3,562,342 Gross profit 369,184 381,095 379,260 372,415 1,501,954 Amortization expenses (18,274 ) (50,909 ) (33,128 ) (26,989 ) (129,300 ) Acquisition expenses (2,990 ) (2,607 ) (2,265 ) (1,784 ) (9,646 ) Integration expenses (19,268 ) (22,578 ) (19,162 ) (26,579 ) (87,587 ) Litigation and professional services expenses (1,300 ) (2,664 ) (1,481 ) (7,459 ) (12,904 ) Change in fair value of contingent consideration 2,644 — (559 ) (34 ) 2,051 Plant conversion expenses (241 ) (929 ) (487 ) (2,329 ) (3,986 ) Contract exit costs (1) — (12,708 ) (10,110 ) (1,187 ) (24,005 ) Asset impairment charges (2) — — (4 ) (28,468 ) (28,472 ) Net income attributable to Stericycle, Inc. 76,786 46,034 64,795 18,744 206,359 Net income attributable to Stericycle, Inc. common shareholders 66,680 37,293 61,536 12,721 178,230 * Basic earnings per common share $ 0.79 $ 0.44 $ 0.72 $ 0.15 $ 2.10 * Diluted earnings per common share $ 0.78 $ 0.43 $ 0.72 $ 0.15 $ 2.08 In thousands, except per share data First Quarter 2015 Second Quarter 2015 Third Quarter 2015 Fourth Quarter 2015 Year 2015 Revenues $ 663,319 $ 715,689 $ 718,596 $ 888,304 $ 2,985,908 Gross profit 281,331 304,824 299,675 380,355 1,266,185 Amortization expenses (8,797 ) (8,921 ) (9,239 ) (18,541 ) (45,498 ) Acquisition expenses (3,296 ) (2,986 ) (33,674 ) 818 (39,138 ) Integration expenses (8,886 ) (8,924 ) (13,447 ) (20,432 ) (51,689 ) Litigation expenses (3) (75,623 ) 173 16,444 (645 ) (59,651 ) Change in fair value of contingent consideration 675 (35 ) — — 640 Restructuring and plant conversion expenses (12,302 ) (3,058 ) (2,721 ) (4,667 ) (22,748 ) Asset impairment charges — — — (1,781 ) (1,781 ) Net income attributable to Stericycle, Inc. 28,940 87,830 69,449 80,827 267,046 Net income attributable to Stericycle, Inc. common shareholders 28,940 87,830 69,449 70,721 256,940 * Basic earnings per common share $ 0.34 $ 1.03 $ 0.82 $ 0.83 $ 3.02 * Diluted earnings per common share $ 0.34 $ 1.02 $ 0.81 $ 0.82 $ 2.98 (1) 2016 charges incurred to exit some of the contracts in our UK patient transport services business (2) Q4 2016 charges mostly from write-down of certain assets in the UK either sold for a loss or classified as assets held for sale (3) Q1 2015 expenses mostly due to the $28.5 million settlement of the Qui Tam Action and the $28.2 million settlement of the Junk Fax Lawsuit *EPS calculated on a quarterly basis, and, as such, the amounts may not total the calculated full-year EPS. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2016 | |
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 Charges/ (Reversals) (1) Write-offs/ Payments Balance End of Period 2014 $ 19,134 $ 9,869 $ 842 $ (10,762 ) $ 19,083 2015 $ 19,083 $ 13,650 $ 3,054 $ (13,458 ) $ 22,329 2016 $ 22,329 $ 41,769 $ 2,696 $ (17,149 ) $ 49,645 (1) Amounts consist primarily currency translation adjustments. In thousands Valuation Allowance on Deferred Tax Assets Balance Beginning of Period Additions/ (Deductions) Charged to/ (from) Income Tax Expense Other Changes to Reserves (2) Balance End of Period 2014 $ 1,122 $ — $ (1,066 ) $ 56 2015 $ 56 $ 13 $ 17,516 $ 17,585 2016 $ 17,585 $ 6,853 $ (9,046 ) $ 15,392 (2) Amounts consist primarily of valuation allowances on acquired deferred tax assets from business combinations. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of Stericycle, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company's consolidated financial statements were prepared in accordance with U.S. GAAP and include the assets, liabilities, revenue and expenses of all wholly-owned subsidiaries and majority-owned subsidiaries over which the Company exercises control. Outside stockholders' interests in subsidiaries are shown on the consolidated financial statements as “Noncontrolling interests." |
Revenue Recognition | Revenue Recognition: Revenues for our regulated medical waste management services, other than our compliances services, and secure information destruction services 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 or delivered to a third party. 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 sales taxes and international value added tax ("VAT") and other similar pass through taxes are not included as revenue. |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets: We have historically evaluated goodwill for impairment annually as of June 30, or when an indicator of impairment exists. During 2016, we changed the date of our annual goodwill impairment assessment for our reporting units to October 1st. This voluntary change in the annual goodwill testing date is a change in accounting principle, which we believe is preferable as it better aligns the timing of the assessment with the timing of the Company’s annual strategic planning and forecasting process. This change in assessment date was applied prospectively and did not delay, accelerate or avoid a potential impairment charge. We evaluated for retrospective application to be impractical as it would require significant estimates and assumptions with the use of hindsight. The Company has the option to assess goodwill for impairment by first performing a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then the two-step goodwill impairment test is not required to be performed. If the Company determines that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, or if the Company does not elect the option to perform an initial qualitative assessment, the Company performs the two-step goodwill impairment test. In the first step, the fair value of the reporting unit is compared to its book value including goodwill. If the fair value of the reporting unit is in excess of its book value, the related goodwill is not impaired and no further analysis is necessary. If the fair value of the reporting unit is less than its book value, there is an indication of potential impairment and a second step is performed. When required, the second step of testing involves calculating the implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in the same manner as goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit determined in step one over the fair value of its net assets, including identifiable intangible assets, as if the reporting unit had been acquired. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. We have historically tested our indefinite lived intangible assets for impairment annually at December 31, or more frequently, if circumstances indicate that they may be impaired. During 2016, we changed the date of our annual indefinite-lived intangible asset impairment assessment to October 1st. This voluntary change in the testing date is a change in accounting principle, which we believe is preferable as it better aligns the timing of the assessment with the timing of the Company’s annual strategic planning and forecasting process and it aligns the testing of all indefinite-lived impairment testing to be as of a consistent date. This change in assessment date was applied prospectively and did not delay, accelerate or avoid a potential impairment charge. We evaluated for retrospective application to be impractical as it would require significant estimates and assumptions with the use of hindsight. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: Long-lived assets, such as property, plant and equipment and intangible assets which are amortized, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If circumstances require that a long-lived asset or asset group to be held and used be tested for possible impairment, the Company first compares the undiscounted cash flows expected to be generated by that long-lived asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Long-lived assets or disposal groups classified as held for sale are recorded at the lower of their carrying amount or fair value less estimated selling costs. Long-lived assets are not depreciated or amortized while classified as held for sale. |
Income Taxes | Income Taxes: We are subject to income taxes in both the U.S. and numerous foreign jurisdictions. We compute our provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities and for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. Significant judgments are required in order to determine the realizability of these deferred tax assets. In assessing the need for a valuation allowance, we evaluate all significant available positive and negative evidence, including historical operating results, estimates of future taxable income and the existence of prudent and feasible tax planning strategies. Changes in the expectations regarding the realization of deferred tax assets could materially impact income tax expense in future periods. Undistributed earnings of foreign subsidiaries are considered to be permanently reinvested, and therefore no deferred taxes are recorded on our outside basis differences. Tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition. For tax positions that meet the more likely than not threshold, a tax liability may still be recorded depending on management’s assessment of how the tax position will ultimately be settled. The Company records interest and penalties on unrecognized tax benefits in the provision for income taxes. |
Accounts Receivable | Accounts Receivable: Accounts receivable consist of amounts due to us from our normal business activities. 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 based on the contractual terms with the customer. We maintain an allowance for doubtful accounts to reflect the expected uncollectability 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 1.4% of our accounts receivable. During the years ended December 31, 2016, 2015 and 2014, bad debt expense was $41.8 million, $13.7 million and $9.9 million, respectively. |
Stock-Based Compensation | Stock-Based Compensation: We measure stock-based compensation cost at fair value. Expense is generally recognized on a straight-line basis over the service period during which awards are expected to vest. We present stock-based compensation expense within the Consolidated Statements of Income based on the classification of the respective employees' cash compensation. |
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 is stated at cost. Depreciation and amortization, which includes the depreciation of assets recorded under capital leases, is 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 2 to 30 years Containers 2 to 20 years Vehicles 2 to 7 years Office equipment and furniture 2 to 20 years Software 2 to 7 years Our containers have a weighted average remaining useful life of 12.2 years. |
Lease and Asset Retirement Obligations | Lease and Asset Retirement Obligations: The Company classifies leases at their inception as either operating or capital leases and may receive renewal or expansion options, rent holidays, and leasehold improvement or other incentives on certain lease agreements. The Company recognizes operating lease costs on a straight-line basis, taking into account adjustments for free or escalating rental payments and deferred payment terms. Additionally, lease incentives are accounted for as a reduction of lease costs over the lease term. Rent expense associated with operating lease obligations that relate to the delivery of our services is presented in Cost of revenues (“COR”) and the remaining is classified within Selling, general and administrative expenses (“SG&A”) on the Consolidated Statements of Income. Minimum lease payments made under capital leases are apportioned between interest expense and a reduction of the related capital lease obligations, which are classified within Accrued liabilities and Current portion of long-term debt on the Consolidated Balance Sheets. The Company establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are amortized over the lease term, and the recorded liabilities are accreted to the |
Insurance | Insurance: Our insurance for workers’ compensation, vehicle liability and physical damage, and employee-related health care benefits is obtained using high deductible insurance policies. A third-party administrator is used to process all such claims. We require all workers’ compensation, vehicle liability and physical damage claims to be reported within 24 hours. As a result, we accrue our workers’ compensation, vehicle and physical damage liability based upon the claim reserves established by the third-party administrator at the end of each reporting period includes an estimate for claims incurred but not yet reported. Our employee health insurance benefit liability is based on our historical claims experience. |
Financial Instruments | Financial Instruments: Our financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable and payable, derivatives, and long-term debt. 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 1.4% of total accounts receivable. We perform ongoing credit evaluation of our customers and maintain allowances for potential credit losses. |
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 our allowance for doubtful accounts, credit memo reserve, accrued employee health and welfare benefits, environmental liabilities, 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. |
Foreign Currency | Foreign Currency: 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 on the Consolidated Balance Sheets. Foreign currency gains and losses resulting from transactions which are denominated in currencies other than the entity’s functional currency, including foreign currency gains and losses on intercompany balances that are not of a long-term investment nature, are included within Other (expense)/income, net on the Consolidated Statements of Income . Reclassifications: Certain amounts in previously issued financial statements have been reclassified to conform to the current period presentation. |
Reclassifications | Reclassifications: Certain amounts in previously issued financial statements have been reclassified to conform to the current period presentation. |
New Accounting Standards | New Accounting Standards: Adoption of New Accounting Standards Going Concern The Company adopted the guidance in Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40) – Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern Compensation - Stock Compensation On January 1, 2016, the Company adopted the guidance in Accounting Standards Update (ASU) No. 2016-09, “Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting.” earnings Interest-Imputation of Interest The Company adopted the guidance in ASU No. 2015-03, "Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" other assets and long-term debt by $12.3 million on the Consolidated Balance Sheet at December 31, 2015. Accounting Standards Issued But Not Yet Adopted Revenue From Contracts With Customers In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (Topic 606) Leases In February 2016, the FASB issued ASU No. 2016-02, “ Leases” (Topic 842) Statement of Cash Flows In August 2016, the FASB issued ASU No. 2016-15 “Statement of Cash Flows” (Topic 230). This guidance clarifies diversity in practice on where in the Statement of Cash Flows to recognize certain transactions, including the classification of payment of contingent consideration for acquisitions between Financing and Operating activities. ASU 2016-15 is effective for us beginning January 1, 2018. The adoption of this guidance is not expected to have a significant impact on our financial statements, as our treatment of the relevant affected items within the Consolidated Statement of Cash Flows is consistent with the requirements of this guidance. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory. annual Intangibles – Goodwill and Other – Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment. |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Assets | Depreciation and amortization, which includes the depreciation of assets recorded under capital leases, is 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 2 to 30 years Containers 2 to 20 years Vehicles 2 to 7 years Office equipment and furniture 2 to 20 years Software 2 to 7 years |
ACQUISITIONS, DIVESTITURES, A30
ACQUISITIONS, DIVESTITURES, AND ASSETS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Location of Acquisitions | The following table summarizes the locations of our acquisitions for the years ended December 31, 2016, 2015 and 2014: Acquisition Locations 2016 2015 2014 United States 21 19 17 Argentina — — 2 Australia 3 — 0 Brazil — 2 3 Canada — 2 2 Chile — — 3 Ireland — 1 — Japan — — 2 Mexico — 3 — Netherlands — 2 — Portugal — — 5 Republic of Korea 1 6 1 Romania 2 4 3 Spain 3 4 3 United Kingdom 1 — 3 Total 31 43 44 |
Summary of Fair Value of Consideration Transferred for Current Period and Prior Year Acquisitions | The following table summarizes the acquisition date fair value of consideration transferred for acquisitions completed during the years ended December 31, 2016, 2015 and 2014: In thousands 2016 2015 2014 Cash $ 55,388 $ 2,420,764 $ 373,820 Promissory notes 40,938 64,124 125,245 Deferred consideration 4,094 3,172 3,889 Contingent consideration 988 10,070 17,174 Total purchase price $ 101,408 $ 2,498,130 $ 520,128 |
Purchase Price Allocation | The following table summarizes the preliminary purchase price allocation for current period acquisitions during the year ended December 31, 2016: In thousands 2016 2015 2014 Fixed assets $ 13,079 $ 196,164 $ 96,868 Intangibles 35,564 1,016,774 249,414 Goodwill 52,769 1,450,950 258,017 Accounts receivable 3,155 135,758 65,509 Net other assets/ (liabilities) 171 18,843 (11,359 ) Current liabilities (933 ) (90,133 ) (64,396 ) Debt (188 ) (4,955 ) (22,423 ) Environmental remediation liabilities — — (32,383 ) Net deferred tax liabilities (2,209 ) (225,271 ) (12,338 ) Noncontrolling interest — — (6,781 ) Total purchase price allocation $ 101,408 $ 2,498,130 $ 520,128 |
Assets and Liabilities Held for Sale, Not Discontinued Operations | |
Summary of Major Classes of Assets and Liabilities Classified as Held for Sale | The following table presents information related to the major classes of assets and liabilities that were classified as held for sale on the Consolidated Balance Sheet at December 31, 2016: In thousands Accounts receivable $ 2,556 Inventory 223 Prepaid expenses 271 Fixed assets 4,915 Goodwill 80 Intangibles 753 Other assets 336 Assets held for sale $ 9,134 Current portion of l-t debt $ 998 Account payable 928 Accrued liabilities 605 Other current liabilities 1 Deferred income taxes 326 Liabilities held for sale $ 2,858 |
Acquisitions Year 2015 | |
Summary of Fair Value of Consideration Transferred for Current Period and Prior Year Acquisitions | The following table summarizes the adjustments to the consideration transferred for prior year acquisitions and primarily includes $9.5 million of additional cash consideration paid in March 2016 as part of the final working capital adjustments for the 2015 Shred-it acquisition: In thousands Cash $ 8,529 Promissory notes (1,790 ) Total purchase price $ 6,739 |
Purchase Price Allocation | The following table summarizes these adjustments by major assets acquired and liabilities assumed: In thousands Shred-it Acquisition Other Prior Year Acquisitions Total Fixed assets $ 45,423 $ 7,215 $ 52,638 Intangibles 153,056 15,923 168,979 Goodwill (152,833 ) (8,356 ) (161,189 ) Accounts receivable (3,585 ) (2,898 ) (6,483 ) Net other assets/ (liabilities) (65 ) (756 ) (821 ) Current liabilities (13,348 ) (2,177 ) (15,525 ) Net deferred tax liabilities (19,006 ) (11,854 ) (30,860 ) Total purchase price allocation $ 9,642 $ (2,903 ) $ 6,739 |
Shred-It | |
Purchase Price Allocation | The following table summarizes the completed purchase price allocation by major asset acquired and liabilities assumed for the acquisition of Shred-it: In thousands Shred-it Acquisition Fixed assets $ 219,673 Intangibles 1,108,056 Goodwill 1,180,213 Accounts receivable 113,956 Net other assets/ (liabilities) 16,673 Current liabilities (85,526 ) Net deferred tax liabilities (239,511 ) Total purchase price allocation $ 2,313,534 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Carried at Fair Value on Recurring Basis | The following table summarizes the bases used to measure financial assets and liabilities that are carried at fair value on a recurring basis in the Consolidated Balance Sheets: In thousands Fair Value Measurements Using Total as of December 31, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Assets: Short-term investments $ 62 $ 62 $ — $ — Derivative financial instruments 816 — 816 — Total assets $ 878 $ 62 $ 816 $ — Liabilities: Contingent consideration $ 24,119 $ — $ — $ 24,119 Total liabilities $ 24,119 $ — $ — $ 24,119 In thousands Fair Value Measurements Using Total as of December 31, 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Assets: Short-term investments $ 69 $ 69 $ — $ — Derivative financial instruments 1,207 — 1,207 — Total assets $ 1,276 $ 69 $ 1,207 $ — Liabilities: Contingent consideration $ 25,390 $ — $ — $ 25,390 Total liabilities $ 25,390 $ — $ — $ 25,390 |
Changes to Contingent Consideration | Changes to contingent consideration are reflected in the table below: In thousands Contingent consideration at January 1, 2016 $ 25,390 Increases due to acquisitions 988 Decrease due to payments (3,057 ) Changes due to foreign currency fluctuations 2,849 Changes in fair value reflected in selling, general, and administrative expenses (2,051 ) Contingent consideration at December 31, 2016 $ 24,119 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015 and 2014: In thousands 2016 2015 2014 United States $ 381,100 $ 378,815 $ 441,029 Foreign (52,955 ) 32,092 46,539 Total income before income taxes $ 328,145 $ 410,907 $ 487,568 |
Significant Components of Income Tax Expense | Significant components of our income tax expense for the years ended December 31, 2016, 2015 and 2014 are as follows In thousands 2016 2015 2014 Current United States - federal $ 102,050 $ 105,941 $ 118,217 United States - state and local 11,615 15,544 13,023 Foreign 10,601 16,512 14,930 124,266 137,997 146,170 Deferred United States - federal 19,052 23,762 29,730 United States - state and local (2,466 ) 2,504 948 Foreign (20,606 ) (21,369 ) (15,339 ) Foreign - changes in statutory rates — — (2,087 ) (4,020 ) 4,897 13,252 Total provision $ 120,246 $ 142,894 $ 159,422 |
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, 2016, 2015 and 2014 are as follows: 2016 2015 2014 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % Effect of: State and local taxes, net of federal tax effect 1.6 % 3.1 % 1.9 % Foreign tax rates 2.1 % (0.4 )% (0.5 )% Change in deferred tax assets from an increase in tax basis of foreign assets — (2.2 )% (1.8 )% Other (2.1 )% (0.7 )% (1.9 )% Effective tax rate 36.6 % 34.8 % 32.7 % |
Deferred Tax Liabilities and Assets | Our deferred tax liabilities and assets at December 31, 2016 and 2015 were as follows: In thousands 2016 2015 Deferred tax liabilities: Property, plant and equipment $ (78,478 ) $ (44,914 ) Goodwill and intangibles (690,387 ) (719,789 ) Other (7,906 ) (5,747 ) Total deferred tax liabilities (776,771 ) (770,450 ) Deferred tax assets: Accrued liabilities 93,706 69,895 Stock based compensation 17,861 74,794 Net operating tax loss carry-forwards 38,254 37,976 Less: valuation allowance (15,392 ) (17,585 ) Total deferred tax assets 134,429 165,080 Net deferred tax liabilities $ (642,342 ) $ (605,370 ) |
Changes in Unrecognized Tax Positions | The following table summarizes the changes in unrecognized tax positions during the years ended December 31, 2016 and 2015: In thousands Unrecognized tax positions, January 1, 2015 $ 15,095 Gross increases - tax positions in prior periods 7,239 Gross decreases - tax positions in prior periods (793 ) Gross increases - current period tax positions 5,976 Settlement (200 ) Lapse of statute of limitations (2,375 ) Unrecognized tax positions, December 31, 2015 $ 24,942 Gross increases - tax positions in prior periods 809 Gross increases - current period tax positions 2,876 Settlement (218 ) Lapse of statute of limitations (1,751 ) Unrecognized tax positions, December 31, 2016 $ 26,658 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Information Related to RSUs | The following table sets forth the information related to RSUs for the years ended December 31: 2016 2015 2014 Total aggregate intrinsic value of outstanding units (in thousands) $ 8,847 $ 8,441 $ 8,337 Per share fair value of units granted 106.01 114.27 115.67 |
Stock-Based Compensation Expense Resulting from Stock Option Awards, RSUs and ESPP | The following table presents the total stock-based compensation expense resulting from stock option awards, RSUs, and the ESPP included on the Consolidated Statements of Income: In thousands Years Ended December 31, 2016 2015 2014 Cost of revenues - stock option plan $ 63 $ 92 $ 52 Selling, general and administrative - stock option plan 17,344 18,541 15,214 Selling, general and administrative - RSUs 896 1,484 1,267 Selling, general and administrative - ESPP 2,152 1,633 1,240 Total pre-tax expense $ 20,455 $ 21,750 $ 17,773 |
Stock Option Activity | Stock option activity for the year ended December 31, 2016, is summarized as follows: Number of Options Weighted Average Exercise Price per Share Outstanding at beginning of year 5,334,803 $ 92.02 Granted 1,100,492 110.26 Exercised (573,799 ) 65.71 Forfeited (339,889 ) 115.07 Canceled or expired (52,875 ) 104.98 Outstanding at December 31, 2016 5,468,732 $ 96.90 Exercisable at December 31, 2016 2,999,940 $ 83.60 |
Intrinsic Value of Options Exercised | The following table sets forth the intrinsic value of options exercised for the years ended December 31: In thousands 2016 2015 2014 Total exercise intrinsic value of options exercised $ 25,974 $ 62,625 $ 65,884 |
Information Related to Outstanding and Exercisable Options | The following table sets forth the information related to outstanding and exercisable options for the years ended December 31: 2016 2015 2014 Weighted average remaining contractual life of outstanding options (in years) 5.25 5.70 6.10 Total aggregate intrinsic value of outstanding options (in thousands) $ 25,100 $ 162,400 $ 269,900 Weighted average remaining contractual life of exercisable options (in years) 4.40 4.70 5.10 Total aggregate intrinsic value of exercisable options (in thousands) $ 25,100 $ 130,600 $ 178,300 |
Options Outstanding and Exercisable by Price Range | Options outstanding and exercisable at December 31, 2016 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 $38.57 - $51.55 688,413 2.54 $ 49.22 688,413 $ 49.22 $52.05 - $85.00 790,945 3.37 74.35 776,730 74.21 $85.02 - $87.04 547,178 5.04 86.25 406,676 86.26 $87.26 - $95.74 112,302 4.98 90.15 98,496 89.79 $95.87 - $95.87 651,362 6.07 95.87 357,219 95.87 $96.11 - $110.14 96,758 7.57 101.37 20,460 101.12 $111.12 - $111.12 847,751 7.10 111.12 325 111.12 $111.20 - $115.54 135,502 6.48 112.19 99,661 112.25 $115.69 - $115.69 660,918 5.12 115.69 268,217 115.69 $115.82 - $141.56 937,603 6.42 129.90 283,743 129.58 $38.57 - $141.56 5,468,732 5.25 $ 96.90 2,999,940 $ 83.60 |
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, 2016 2015 2014 Stock options granted (shares) 1,100,492 1,056,490 981,583 Weighted average fair value at grant date $ 20.16 $ 22.90 $ 21.31 Assumptions: Expected term (in years) 4.77 4.79 4.76 Expected volatility 18.28 % 16.71 % 17.23 % Expected dividend yield — % — % — % Risk free interest rate 1.21 % 1.47 % 1.53 % |
Restricted Stock Units Activity | A summary of the status of our non-vested RSUs and changes during the year ended December 31, 2016, are as follows: Number of Units Weighted Average Grant Date Fair Value Non-vested at beginning of year 71,451 $ 101.29 Granted 78,237 106.01 Forfeited (34,850 ) 102.25 Non-vested at December 31, 2016 114,838 104.22 |
PREFERRED STOCK (Tables)
PREFERRED STOCK (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Repurchases of Depository Shares of Mandatory Convertible Preferred Stock | The following table provides information about our repurchases of depository shares of mandatory convertible preferred stock during the year ended December 31, 2016: Number of Depository Shares Repurchased Amount Paid for Repurchases Average Price Paid per Share (in thousands) Three months ended June 30, 2016 65,000 $ 5,025 $ 77.31 Three months ended September 30, 2016 265,000 19,238 72.60 Three months ended December 31, 2016 105,000 6,647 63.30 Total 435,000 $ 30,910 $ 71.06 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per share: In thousands, except share and per share data Years Ended December 31, 2016 2015 2014 Numerator: Net income attributable to Stericycle, Inc. $ 206,359 $ 267,046 $ 326,456 Mandatory convertible preferred stock dividend 39,414 10,106 — Gain on repurchase of preferred stock (11,285 ) — — Numerator for basic earnings per share attributable to Stericycle, Inc. common shareholders 178,230 256,940 326,456 Denominator: Denominator for basic earnings per share - weighted average shares 84,932,402 84,944,841 84,932,792 Effect of diluted securities: Employee stock options 677,817 1,217,768 1,300,820 Mandatory convertible preferred stock (1) — — — Denominator for diluted earnings per share - adjusted weighted average shares and after assumed exercises 85,610,219 86,162,609 86,233,612 Earnings per share – Basic $ 2.10 $ 3.02 $ 3.84 Earnings per share – Diluted $ 2.08 $ 2.98 $ 3.79 (1) In 2016, the weighted average common shares issuable upon the assumed conversion of the mandatory convertible preferred stock totaling 5,528,257 shares were excluded from the computation of diluted earnings per share as such conversion would have been anti-dilutive. |
ACCUMULATED OTHER COMPREHENSI36
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Components of Total Comprehensive Income | The following table sets forth the changes in the components of accumulated other comprehensive income for 2016, 2015 and 2014: In thousands Currency Translation Adjustments Unrealized Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Income/ (Loss) Beginning balance at January 1, 2014 $ (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 ) Period change (140,809 ) (3,403 ) (144,212 ) Ending balance at December 31, 2015 $ (276,040 ) $ (6,591 ) $ (282,631 ) Period change (86,340 ) 1,328 (85,012 ) Ending balance at December 31, 2016 $ (362,380 ) $ (5,263 ) $ (367,643 ) |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment at December 31, 2016 and 2015 consisted of the following: In thousands 2016 2015 Land and improvements $ 66,335 $ 65,621 Building and improvements 197,608 166,874 Machinery and equipment 314,288 314,252 Vehicles 173,169 136,379 Containers 226,733 190,454 Office equipment and furniture 146,780 117,632 Software 38,886 46,979 Construction in progress 55,310 53,430 Total property, plant & equipment 1,219,109 1,091,621 Less: accumulated depreciation (495,215 ) (426,019 ) Property, plant and equipment, net $ 723,894 $ 665,602 |
GOODWILL AND OTHER INTANGIBLE38
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill since January 1, 2015, by reportable segment and for the “Other” category, were as follows: In thousands Domestic and Canada RCS International RCS Other Total Balance at January 1, 2015 (1) $ 1,638,529 $ 521,338 $ 258,965 $ 2,418,832 Goodwill acquired during year 1,231,219 192,737 26,994 1,450,950 Purchase accounting adjustments (8,072 ) (17,221 ) (2,984 ) (28,277 ) Other changes — (440 ) — (440 ) Changes due to foreign currency fluctuations (18,965 ) (63,923 ) — (82,888 ) Balance at December 31, 2015 2,842,711 632,491 282,975 3,758,177 Goodwill acquired during year 41,517 8,381 2,871 52,769 Purchase accounting adjustments (77,247 ) (78,894 ) (5,048 ) (161,189 ) Goodwill write-offs related to disposition and assets held for sale — (7,486 ) — (7,486 ) Changes due to foreign currency fluctuations 4,820 (56,071 ) — (51,251 ) Balance at December 31, 2016 $ 2,811,801 $ 498,421 $ 280,798 $ 3,591,020 (1) The January 1, 2015 balances have been recast to reflect the new organizational structure. Domestic and Canada RCS goodwill from the International RCS and Other includes resulting from the changes described. |
Carrying Values of Other Intangible Assets | At December 31, 2016 and 2015, the values of other intangible assets were as follows: In thousands 2016 2015 Gross Carrying Amount Accumulated Amortization Net Value Gross Carrying Amount Accumulated Amortization Net Value Amortizable intangibles: Customer relationships $ 1,553,398 $ 261,306 $ 1,292,092 $ 1,304,388 $ 144,020 $ 1,160,368 Covenants not-to-compete 9,491 6,371 3,120 6,878 5,141 1,737 Tradenames 5,708 1,365 4,343 3,819 948 2,871 Other 19,076 2,526 16,550 18,902 916 17,986 Indefinite lived intangibles: Operating permits 229,396 — 229,396 233,101 — 233,101 Tradenames 316,472 — 316,472 426,498 — 426,498 Total $ 2,133,541 $ 271,568 $ 1,861,973 $ 1,993,586 $ 151,025 $ 1,842,561 |
Changes in Carrying Amount of Intangible Assets | The changes in the carrying amount of intangible assets since January 1, 2015 were as follows: In thousands Total Balance as of January 1, 2015 $ 909,645 Intangible assets acquired during the year 1,016,775 Valuation adjustments for prior year acquisitions 35,241 Impairments during the year (4,177 ) Amortization during the year (45,498 ) Changes due to foreign currency fluctuations (69,425 ) Balance as of December 31, 2015 1,842,561 Intangible assets acquired during the year 35,564 Valuation adjustments for prior year acquisitions 168,979 Intangible write-offs due to disposition and assets held for sale (15,961 ) Impairments during the year (1,406 ) Amortization during the year (129,300 ) Changes due to foreign currency fluctuations (38,464 ) Balance at December 31, 2016 $ 1,861,973 |
Estimated Amortization Expense | The estimated amortization expense for each of the next five years is as follows for the years ended December 31: In thousands 2017 $ 116,265 2018 116,127 2019 115,738 2020 115,045 2021 113,919 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities at December 31, 2016 and 2015 consisted of the following items: In thousands 2016 2015 Accrued compensation $ 64,586 $ 62,721 Accrued insurance 53,637 43,390 Accrued taxes 18,289 27,363 Accrued interest 14,123 13,829 Accrued professional services liabilities 10,109 6,948 Accrued liabilities - other 67,782 43,078 Total accrued liabilities $ 228,526 $ 197,329 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consisted of the following at December 31: In thousands 2016 2015 Obligations under capital leases $ 11,121 $ 15,024 $1.2 billion senior credit facility weighted average rate 2.14%, due in 2019 407,119 353,763 $1.0 billion term loan weighted average rate 2.07%, due in 2020 1,000,000 1,250,000 $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 $150 million private placement notes 2.89%, due in 2021 150,000 150,000 $125 million private placement notes 3.26%, due in 2022 125,000 125,000 $200 million private placement notes 2.72%, due in 2022 200,000 200,000 $100 million private placement notes 2.79%, due in 2023 100,000 100,000 $150 million private placement notes 3.18%, due in 2023 150,000 150,000 Promissory notes and deferred consideration weighted average rate of 2.43% and weighted average maturity of 3.2 years 191,648 239,731 Foreign bank debt weighted average rate 6.51% and weighted average maturity of 2.1 years 99,428 105,530 Total debt 2,959,316 3,214,048 Less: current portion of total debt 72,822 161,409 Less: unamortized debt issuance costs 9,179 12,287 Long-term portion of total debt $ 2,877,315 $ 3,040,352 |
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, 2016 are as follows: In thousands 2017 $ 70,017 2018 208,328 2019 1,044,598 2020 878,011 2021 161,474 Thereafter 585,767 $ 2,948,195 |
Property under Capital Leases Included within Property, Plant and Equipment | Property under capital leases included within property, plant and equipment on the Consolidated Balance S heets In thousands 2016 2015 Land $ 151 $ 157 Buildings 775 804 Machinery and equipment 6,634 6,105 Vehicles 9,907 15,925 Less: accumulated depreciation (5,523 ) (7,148 ) $ 11,944 $ 15,843 |
Minimum Future Lease Payments Under Capital Leases | Minimum future lease payments under capital leases are as follows: In thousands 2017 $ 3,692 2018 2,759 2019 2,614 2020 2,093 2021 2,119 Thereafter 106 Total minimum lease payments 13,383 Less: amounts representing interest (2,262 ) Present value of net minimum lease payments 11,121 Less: current portion included in current portion of long-term debt (2,805 ) Long-term obligations under capital leases $ 8,316 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [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, 2016 for each of the next five years and in the aggregate are as follows: In thousands 2017 $ 116,473 2018 96,215 2019 78,587 2020 59,571 2021 43,858 Thereafter 63,383 $ 458,087 |
Schedule of Future Payments under Contractual Obligations Not Recognized in Consolidated Balance Sheets | As of December 31, 2016, future payments under these contractual obligations, not recognized in the Consolidated Balance Sheets, were as follows: In thousands 2017 $ 31,840 2018 16,370 2019 15,989 2020 15,855 2021 — Thereafter — $ 80,054 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Financial Information Concerning Company's Reportable Segments | The following tables show financial information for the Company's reportable segments: In thousands Years Ended December 31, 2016 2015 2014 Revenues Domestic and Canada RCS $ 2,508,865 $ 1,999,196 $ 1,667,353 International RCS 751,677 716,771 663,889 All other 301,800 269,941 224,359 Total $ 3,562,342 $ 2,985,908 $ 2,555,601 Gross Profit Domestic and Canada RCS $ 1,124,815 $ 912,220 $ 772,518 International RCS 228,484 230,323 216,377 All other 148,655 123,642 105,516 Total $ 1,501,954 $ 1,266,185 $ 1,094,411 Amortization Domestic and Canada RCS $ 95,640 $ 22,714 $ 12,728 International RCS 25,730 14,926 13,298 All other 7,930 7,858 6,666 Total $ 129,300 $ 45,498 $ 32,692 EBITA Domestic and Canada RCS $ 688,161 $ 631,395 $ 594,204 International RCS 58,027 89,064 98,494 All other (18,564 ) (12,982 ) (44,683 ) Total $ 727,624 $ 707,477 $ 648,015 Total Assets Domestic and Canada RCS $ 5,094,107 $ 4,913,485 $ 2,616,751 International RCS 1,357,047 1,636,382 1,291,671 All other 528,907 515,296 464,880 Total $ 6,980,061 $ 7,065,163 $ 4,373,302 |
Reconciliation of Company's Primary Measure of Segment Profitability (EBITA) to Income from Operations | The following table reconciles the Company's primary measure of segment profitability (EBITA) to income from operations: In thousands Years Ended December 31, 2016 2015 2014 Domestic and Canada RCS EBITA $ 688,161 $ 631,395 $ 594,204 International RCS EBITA 58,027 89,064 98,494 Subtotal reportable segments 746,188 720,459 692,698 All other EBITA (18,564 ) (12,982 ) (44,683 ) Amortization expenses (129,300 ) (45,498 ) (32,692 ) Acquisition expenses (9,646 ) (39,138 ) (13,333 ) Integration expenses (87,587 ) (51,689 ) (25,968 ) Litigation and professional services expenses (12,904 ) (59,651 ) (6,574 ) Change in fair value of contingent consideration 2,051 640 1,452 Restructuring and plant conversion expenses (3,986 ) (22,748 ) (14,564 ) Contract exit costs (24,005 ) — — Asset impairment charges (28,472 ) (1,781 ) — Income from operations $ 433,775 $ 487,612 $ 556,336 |
Summary of Revenue Details by Service Line | The following table shows consolidated revenue by service: In thousands Years Ended December 31, 2016 2015 2014 Regulated Waste and Compliance Services $ 2,061,416 $ 2,064,866 $ 1,955,761 Secure Information Destruction Services 747,510 178,085 — Communication and Related Services 370,500 334,142 268,565 Manufacturing and Industrial Services 382,916 408,815 331,275 Revenues $ 3,562,342 $ 2,985,908 $ 2,555,601 |
Schedule of Consolidated Revenue and Property, Plant and Equipment Split Geographically | The following table shows consolidated revenue and property, plant and equipment split geographically: In thousands Years Ended December 31, 2016 2015 2014 Revenues United States $ 2,657,452 $ 2,165,030 $ 1,788,390 International: Europe 485,975 441,231 407,082 Other international countries 418,915 379,647 360,129 Total international 904,890 820,878 767,211 Total $ 3,562,342 $ 2,985,908 $ 2,555,601 Long-Lived Assets United States $ 499,070 $ 434,202 $ 284,788 International: Europe 89,007 95,771 70,621 Other international countries 135,817 135,629 104,999 Total international 224,824 231,400 175,620 Total $ 723,894 $ 665,602 $ 460,408 |
SELECTED QUARTERLY FINANCIAL 43
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 and 2015: In thousands, except per share data First Quarter 2016 Second Quarter 2016 Third Quarter 2016 Fourth Quarter 2016 Year 2016 Revenues $ 874,181 $ 891,621 $ 890,144 $ 906,396 $ 3,562,342 Gross profit 369,184 381,095 379,260 372,415 1,501,954 Amortization expenses (18,274 ) (50,909 ) (33,128 ) (26,989 ) (129,300 ) Acquisition expenses (2,990 ) (2,607 ) (2,265 ) (1,784 ) (9,646 ) Integration expenses (19,268 ) (22,578 ) (19,162 ) (26,579 ) (87,587 ) Litigation and professional services expenses (1,300 ) (2,664 ) (1,481 ) (7,459 ) (12,904 ) Change in fair value of contingent consideration 2,644 — (559 ) (34 ) 2,051 Plant conversion expenses (241 ) (929 ) (487 ) (2,329 ) (3,986 ) Contract exit costs (1) — (12,708 ) (10,110 ) (1,187 ) (24,005 ) Asset impairment charges (2) — — (4 ) (28,468 ) (28,472 ) Net income attributable to Stericycle, Inc. 76,786 46,034 64,795 18,744 206,359 Net income attributable to Stericycle, Inc. common shareholders 66,680 37,293 61,536 12,721 178,230 * Basic earnings per common share $ 0.79 $ 0.44 $ 0.72 $ 0.15 $ 2.10 * Diluted earnings per common share $ 0.78 $ 0.43 $ 0.72 $ 0.15 $ 2.08 In thousands, except per share data First Quarter 2015 Second Quarter 2015 Third Quarter 2015 Fourth Quarter 2015 Year 2015 Revenues $ 663,319 $ 715,689 $ 718,596 $ 888,304 $ 2,985,908 Gross profit 281,331 304,824 299,675 380,355 1,266,185 Amortization expenses (8,797 ) (8,921 ) (9,239 ) (18,541 ) (45,498 ) Acquisition expenses (3,296 ) (2,986 ) (33,674 ) 818 (39,138 ) Integration expenses (8,886 ) (8,924 ) (13,447 ) (20,432 ) (51,689 ) Litigation expenses (3) (75,623 ) 173 16,444 (645 ) (59,651 ) Change in fair value of contingent consideration 675 (35 ) — — 640 Restructuring and plant conversion expenses (12,302 ) (3,058 ) (2,721 ) (4,667 ) (22,748 ) Asset impairment charges — — — (1,781 ) (1,781 ) Net income attributable to Stericycle, Inc. 28,940 87,830 69,449 80,827 267,046 Net income attributable to Stericycle, Inc. common shareholders 28,940 87,830 69,449 70,721 256,940 * Basic earnings per common share $ 0.34 $ 1.03 $ 0.82 $ 0.83 $ 3.02 * Diluted earnings per common share $ 0.34 $ 1.02 $ 0.81 $ 0.82 $ 2.98 (1) 2016 charges incurred to exit some of the contracts in our UK patient transport services business (2) Q4 2016 charges mostly from write-down of certain assets in the UK either sold for a loss or classified as assets held for sale (3) Q1 2015 expenses mostly due to the $28.5 million settlement of the Qui Tam Action and the $28.2 million settlement of the Junk Fax Lawsuit *EPS calculated on a quarterly basis, and, as such, the amounts may not total the calculated full-year EPS. |
DESCRIPTION OF BUSINESS - Addit
DESCRIPTION OF BUSINESS - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Customer | |
Minimum | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Number of customers | 1,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Accounting Policies [Line Items] | |||
Bad debt expense | $ 41,800 | $ 13,700 | $ 9,900 |
Income tax effects in earnings | 6,000 | ||
Long-term debt | $ 2,877,315 | 3,040,352 | |
ASU No. 2015-03 | Adjustment [Member] | |||
Significant Accounting Policies [Line Items] | |||
Other assets, current and noncurrent | (12,300) | ||
Long-term debt | $ (12,300) | ||
Containers | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, weighted average remaining useful life | 12 years 2 months 12 days | ||
Customer Concentration Risk | Accounts Receivable | |||
Significant Accounting Policies [Line Items] | |||
Customer concentration risk percentage, no more than | 1.40% |
SUMMARY OF SIGNIFICANT ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Building and improvements | Minimum | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Building and improvements | Maximum | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 50 years |
Machinery and equipment | Minimum | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Machinery and equipment | Maximum | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Containers | Minimum | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Containers | Maximum | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Vehicles | Minimum | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Vehicles | Maximum | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Office equipment and furniture | Minimum | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Office equipment and furniture | Maximum | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Software | Minimum | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Software | Maximum | |
Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 7 years |
ACQUISITIONS, DIVESTITURES, A47
ACQUISITIONS, DIVESTITURES, AND ASSETS HELD FOR SALE - Summary of Acquisition Location (Detail) - Entity | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Number of acquisitions | 31 | 43 | 44 |
United States | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 21 | 19 | 17 |
Argentina | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 0 | 0 | 2 |
Australia | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 3 | 0 | 0 |
Brazil | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 0 | 2 | 3 |
Canada | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 0 | 2 | 2 |
Chile | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 0 | 0 | 3 |
Ireland | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 0 | 1 | 0 |
Japan | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 0 | 0 | 2 |
Mexico | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 0 | 3 | 0 |
Netherlands | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 0 | 2 | 0 |
Portugal | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 0 | 0 | 5 |
Republic of Korea | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 1 | 6 | 1 |
Romania | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 2 | 4 | 3 |
Spain | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 3 | 4 | 3 |
United Kingdom | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | 1 | 0 | 3 |
ACQUISITIONS, DIVESTITURES, A48
ACQUISITIONS, DIVESTITURES, AND ASSETS HELD FOR SALE - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($)Entity | Dec. 31, 2015USD ($)Entity | Dec. 31, 2014USD ($)Entity | |
Business Acquisition [Line Items] | |||||
Number of acquisitions | 31 | 43 | 44 | ||
Net increase (decrease) in goodwill | $ | $ 52,769 | $ 1,450,950 | |||
Effect of goodwill on income taxes | $ | $ 40,300 | 40,300 | |||
Net increase in Intangible Assets | $ | 35,600 | 35,600 | |||
Acquisition related expenses | $ | 9,646 | 39,138 | $ 13,333 | ||
Proceeds from sale of business | $ | 790 | ||||
Assets and Liabilities Held for Sale, Not Discontinued Operations | Selling, general and administrative expenses | |||||
Business Acquisition [Line Items] | |||||
Impairment charges | $ | 25,500 | ||||
Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets | $ | $ 34,600 | ||||
Customer relationships | Minimum | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, useful life | 10 years | ||||
Customer relationships | Maximum | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, useful life | 40 years | ||||
Covenants not-to-compete | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets | $ | $ 1,000 | ||||
Acquired finite-lived intangible assets, useful life | 5 years | ||||
Shred-It | |||||
Business Acquisition [Line Items] | |||||
Net increase in Intangible Assets | $ | $ 1,108,056 | $ 1,108,056 | |||
Aggregate purchase price | $ | $ 2,300,000 | ||||
Additional cash consideration paid | $ | $ 9,500 | ||||
United States | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 21 | 19 | 17 | ||
United States | Regulated waste and compliance services | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 2 | ||||
United States | Communication and related services | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 1 | ||||
United States | Acquisition One | Secure information destruction business | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 15 | ||||
United States | Acquisition Two | Regulated waste and compliance services | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 3 | ||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | |||
Republic of Korea | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 1 | 6 | 1 | ||
Republic of Korea | Regulated waste and compliance services | International | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 1 | ||||
Spain | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 3 | 4 | 3 | ||
Spain | Secure information destruction business | International | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, ownership percentage acquired | 100.00% | 100.00% | |||
Spain | Regulated waste and compliance services | International | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 2 | ||||
Romania | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 2 | 4 | 3 | ||
Romania | Regulated waste and compliance services | International | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 2 | ||||
United Kingdom | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 1 | 0 | 3 | ||
United Kingdom | Disposed of by Sale, Not Discontinued Operations | |||||
Business Acquisition [Line Items] | |||||
Proceeds from sale of business | $ | $ 800 | ||||
United Kingdom | Disposed of by Sale, Not Discontinued Operations | Selling, general and administrative expenses | |||||
Business Acquisition [Line Items] | |||||
Pretax loss from sale | $ | 1,600 | ||||
Loss from sale, net of tax | $ | $ 1,300 | ||||
United Kingdom | Regulated waste and compliance services | International | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 1 | ||||
Australia | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 3 | 0 | 0 | ||
Australia | Secure information destruction business | International | |||||
Business Acquisition [Line Items] | |||||
Number of acquisitions | 3 |
ACQUISITIONS, DIVESTITURES, A49
ACQUISITIONS, DIVESTITURES, AND ASSETS HELD FOR SALE - Aggregate Purchase Price Paid for Acquisitions and Other Adjustments to Consideration (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Cash | $ 63,917 | $ 2,419,437 | $ 374,321 |
Series of individual business acquisitions for Year 2016, 2015 and 2014 | |||
Business Acquisition [Line Items] | |||
Cash | 55,388 | 2,420,764 | 373,820 |
Promissory notes | 40,938 | 64,124 | 125,245 |
Deferred consideration | 4,094 | 3,172 | 3,889 |
Contingent consideration | 988 | 10,070 | 17,174 |
Total purchase price | 101,408 | $ 2,498,130 | $ 520,128 |
Acquisitions Year 2015 | |||
Business Acquisition [Line Items] | |||
Cash | 8,529 | ||
Promissory notes reduction resulting from adjustment | (1,790) | ||
Total purchase price | $ 6,739 |
ACQUISITIONS, DIVESTITURES, A50
ACQUISITIONS, DIVESTITURES, AND ASSETS HELD FOR SALE - Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Intangibles | $ 35,600 | ||
Goodwill | 3,591,020 | $ 3,758,177 | $ 2,418,832 |
Acquisitions Year 2016 | |||
Business Acquisition [Line Items] | |||
Fixed assets | 13,079 | ||
Intangibles | 35,564 | ||
Goodwill | 52,769 | ||
Accounts receivable | 3,155 | ||
Net other assets/ (liabilities) | 171 | ||
Current liabilities | (933) | ||
Debt | (188) | ||
Environmental remediation liabilities | 0 | ||
Net deferred tax liabilities | (2,209) | ||
Noncontrolling interest | 0 | ||
Total purchase price allocation | 101,408 | ||
Acquisitions Year 2015 | |||
Business Acquisition [Line Items] | |||
Fixed assets | 196,164 | ||
Intangibles | 1,016,774 | ||
Goodwill | 1,450,950 | ||
Accounts receivable | 135,758 | ||
Net other assets/ (liabilities) | 18,843 | ||
Current liabilities | (90,133) | ||
Debt | (4,955) | ||
Environmental remediation liabilities | 0 | ||
Net deferred tax liabilities | (225,271) | ||
Noncontrolling interest | 0 | ||
Total purchase price allocation | $ 2,498,130 | ||
Acquisitions Year 2015 | Restatement Adjustment | |||
Business Acquisition [Line Items] | |||
Fixed assets | 52,638 | ||
Intangibles | 168,979 | ||
Goodwill, purchase accounting adjustment | (161,189) | ||
Accounts receivable | (6,483) | ||
Net other assets/ (liabilities) | (821) | ||
Current liabilities | (15,525) | ||
Net deferred tax liabilities | (30,860) | ||
Total purchase price allocation | 6,739 | ||
Acquisitions Year 2014 | |||
Business Acquisition [Line Items] | |||
Fixed assets | 96,868 | ||
Intangibles | 249,414 | ||
Goodwill | 258,017 | ||
Accounts receivable | 65,509 | ||
Net other assets/ (liabilities) | (11,359) | ||
Current liabilities | (64,396) | ||
Debt | (22,423) | ||
Environmental remediation liabilities | (32,383) | ||
Net deferred tax liabilities | (12,338) | ||
Noncontrolling interest | (6,781) | ||
Total purchase price allocation | $ 520,128 | ||
Shred-It | |||
Business Acquisition [Line Items] | |||
Fixed assets | 219,673 | ||
Intangibles | 1,108,056 | ||
Goodwill | 1,180,213 | ||
Accounts receivable | 113,956 | ||
Net other assets/ (liabilities) | 16,673 | ||
Current liabilities | (85,526) | ||
Net deferred tax liabilities | (239,511) | ||
Total purchase price allocation | 2,313,534 | ||
Shred-It | Restatement Adjustment | |||
Business Acquisition [Line Items] | |||
Fixed assets | 45,423 | ||
Intangibles | 153,056 | ||
Goodwill, purchase accounting adjustment | (152,833) | ||
Accounts receivable | (3,585) | ||
Net other assets/ (liabilities) | (65) | ||
Current liabilities | (13,348) | ||
Net deferred tax liabilities | (19,006) | ||
Total purchase price allocation | 9,642 | ||
Other Prior Year Acquisitions | Restatement Adjustment | |||
Business Acquisition [Line Items] | |||
Fixed assets | 7,215 | ||
Intangibles | 15,923 | ||
Goodwill, purchase accounting adjustment | (8,356) | ||
Accounts receivable | (2,898) | ||
Net other assets/ (liabilities) | (756) | ||
Current liabilities | (2,177) | ||
Net deferred tax liabilities | (11,854) | ||
Total purchase price allocation | $ (2,903) |
ACQUISITIONS, DIVESTITURES, A51
ACQUISITIONS, DIVESTITURES, AND ASSETS HELD FOR SALE - Summary of Major Classes of Assets and Liabilities Classified as Held for Sale (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Assets held for sale | $ 9,134 |
Liabilities held for sale | 2,858 |
Assets and Liabilities Held for Sale, Not Discontinued Operations | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Accounts receivable | 2,556 |
Inventory | 223 |
Prepaid expenses | 271 |
Fixed assets | 4,915 |
Goodwill | 80 |
Intangibles | 753 |
Other assets | 336 |
Assets held for sale | 9,134 |
Current portion of l-t debt | 998 |
Account payable | 928 |
Accrued liabilities | 605 |
Other current liabilities | 1 |
Deferred income taxes | 326 |
Liabilities held for sale | $ 2,858 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Financial Assets and Liabilities Carried at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Short-term investments | $ 62 | $ 69 |
Derivative financial instruments | 816 | 1,207 |
Total assets | 878 | 1,276 |
Liabilities: | ||
Contingent consideration | 24,119 | 25,390 |
Total liabilities | 24,119 | 25,390 |
Level 1 Inputs [Member] | ||
Assets: | ||
Short-term investments | 62 | 69 |
Derivative financial instruments | 0 | 0 |
Total assets | 62 | 69 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 Inputs | ||
Assets: | ||
Short-term investments | 0 | 0 |
Derivative financial instruments | 816 | 1,207 |
Total assets | 816 | 1,207 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 Inputs [Member] | ||
Assets: | ||
Short-term investments | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Contingent consideration | 24,119 | 25,390 |
Total liabilities | $ 24,119 | $ 25,390 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative asset | $ 816,000 | $ 1,207,000 |
Contingent consideration liabilities | 24,119,000 | 25,390,000 |
Debt obligations, carrying amount | 2,959,316,000 | 3,214,048,000 |
Maximum | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Maximum contingent liability if financial performance measures were fully met | 25,400,000 | |
Level 3 Inputs [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative asset | 0 | 0 |
Contingent consideration liabilities | 24,119,000 | 25,390,000 |
Level 3 Inputs [Member] | Current Liabilities [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Contingent consideration liabilities | 8,100,000 | 9,100,000 |
Level 2 Inputs | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative asset | 816,000 | 1,207,000 |
Contingent consideration liabilities | 0 | 0 |
Debt obligations, fair value | $ 2,970,000,000 | $ 3,220,000,000 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes to Contingent Consideration (Detail) - Contingent Consideration Liability $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Business Combination, Contingent Consideration, Liability [Roll Forward] | |
Contingent consideration at January 1, 2016 | $ 25,390 |
Increases due to acquisitions | 988 |
Decrease due to payments | (3,057) |
Changes due to foreign currency fluctuations | 2,849 |
Changes in fair value reflected in selling, general, and administrative expenses | (2,051) |
Contingent consideration at December 31, 2016 | $ 24,119 |
INCOME TAXES - United States an
INCOME TAXES - United States and International Components of Income before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 381,100 | $ 378,815 | $ 441,029 |
Foreign | (52,955) | 32,092 | 46,539 |
Income Before Income Taxes | $ 328,145 | $ 410,907 | $ 487,568 |
INCOME TAXES - Significant Comp
INCOME TAXES - Significant Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||
United States - federal | $ 102,050 | $ 105,941 | $ 118,217 |
United States - state and local | 11,615 | 15,544 | 13,023 |
Foreign | 10,601 | 16,512 | 14,930 |
Current income tax expense | 124,266 | 137,997 | 146,170 |
Deferred | |||
United States - federal | 19,052 | 23,762 | 29,730 |
United States - state and local | (2,466) | 2,504 | 948 |
Foreign | (20,606) | (21,369) | (15,339) |
Foreign - changes in statutory rates | 0 | 0 | (2,087) |
Deferred income tax expense | (4,020) | 4,897 | 13,252 |
Total provision | $ 120,246 | $ 142,894 | $ 159,422 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax Provision Computed at Federal Statutory Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State and local taxes, net of federal tax effect | 1.60% | 3.10% | 1.90% |
Foreign tax rates | 2.10% | (0.40%) | (0.50%) |
Change in deferred tax assets from an increase in tax basis of foreign assets | 0.00% | (2.20%) | (1.80%) |
Other | (2.10%) | (0.70%) | (1.90%) |
Effective tax rate | 36.60% | 34.80% | 32.70% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Cash payments for income taxes | $ 111,500 | $ 125,100 | $ 128,100 |
Net operating loss carry-forwards | 121,700 | ||
Tax benefit of net operating losses | 38,254 | 37,976 | |
Valuation allowance for net operating losses | 15,392 | 17,585 | |
Undistributed earnings of foreign subsidiaries | 542,200 | ||
Unrecognized tax positions | 26,658 | 24,942 | $ 15,095 |
Unrecognized tax positions that, if recognized, would affect the effective tax rate | 21,400 | ||
Interest and penalties recognized related to income tax reserves | $ 1,300 | $ 700 |
INCOME TAXES - Deferred Tax Lia
INCOME TAXES - Deferred Tax Liabilities and Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax liabilities: | ||
Property, plant and equipment | $ (78,478) | $ (44,914) |
Goodwill and intangibles | (690,387) | (719,789) |
Other | (7,906) | (5,747) |
Total deferred tax liabilities | (776,771) | (770,450) |
Deferred tax assets: | ||
Accrued liabilities | 93,706 | 69,895 |
Stock based compensation | 17,861 | 74,794 |
Net operating tax loss carry-forwards | 38,254 | 37,976 |
Less: valuation allowance | (15,392) | (17,585) |
Total deferred tax assets | 134,429 | 165,080 |
Net deferred tax liabilities | $ (642,342) | $ (605,370) |
INCOME TAXES - Summary of Chang
INCOME TAXES - Summary of Changes in Unrecognized Tax Positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Change in Unrecognized Tax Positions [Roll Forward] | ||
Unrecognized tax positions, beginning of year | $ 24,942 | $ 15,095 |
Gross increases - tax positions in prior periods | 809 | 7,239 |
Gross decreases - tax positions in prior periods | (793) | |
Gross increases - current period tax positions | 2,876 | 5,976 |
Settlement | (218) | (200) |
Lapse of statute of limitations | (1,751) | (2,375) |
Unrecognized tax positions, end of year | $ 26,658 | $ 24,942 |
STOCK BASED COMPENSATION - Addi
STOCK BASED COMPENSATION - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares reserved for future issuance | 8,054,670 | ||
Term of offering period | 6 months | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 1,000,000 | ||
Percentage of discount to market price | 85.00% | ||
Maximum payroll deductions during the offering period, per employee | $ 5,000 | ||
Shares available for issuance (in shares) | 202,364 | ||
Stock issued during period (in shares) | 89,100 | 68,039 | 60,189 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expenses related to stock options | $ 38,000,000 | ||
Weighted average period of recognition for unrecognized compensation expenses | 2 years 10 months 17 days | ||
Stock Options [Member] | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Stock Options [Member] | Officers And Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Stock Options [Member] | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum term of an option granted under any plan | 8 years | ||
Stock Options [Member] | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum term of an option granted under any plan | 10 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 10 days | ||
Ratio of share reserve related to RSUs granted | 200.00% | ||
Unrecognized compensation expenses related to RSUs | $ 7,400,000 | ||
Fair value of units vested (in shares) | $ 2,000,000 | ||
Units vested (in shares) | 0 | 0 | |
Restricted Stock Units (RSUs) [Member] | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock Units (RSUs) [Member] | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock-Based Compensation Expense Resulting from Stock Option Awards, RSUs and ESPP (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 20,455 | $ 21,750 | $ 17,773 |
Stock Options [Member] | Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 63 | 92 | 52 |
Stock Options [Member] | Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 17,344 | 18,541 | 15,214 |
Restricted Stock Units (RSUs) [Member] | Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 896 | 1,484 | 1,267 |
ESPP [Member] | Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 2,152 | $ 1,633 | $ 1,240 |
STOCK BASED COMPENSATION - St63
STOCK BASED COMPENSATION - Stock Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Options | |||
Outstanding at beginning of year | 5,334,803 | ||
Granted | 1,100,492 | 1,056,490 | 981,583 |
Exercised | (573,799) | ||
Forfeited | (339,889) | ||
Canceled or expired | (52,875) | ||
Outstanding at December 31, 2016 | 5,468,732 | 5,334,803 | |
Exercisable at December 31, 2016 | 2,999,940 | ||
Weighted Average Exercise Price per Share | |||
Outstanding at beginning of year | $ 92.02 | ||
Granted | 110.26 | ||
Exercised | 65.71 | ||
Forfeited | 115.07 | ||
Canceled or expired | 104.98 | ||
Outstanding at December 31, 2016 | 96.90 | $ 92.02 | |
Exercisable at December 31, 2016 | $ 83.60 |
STOCK BASED COMPENSATION - Intr
STOCK BASED COMPENSATION - Intrinsic Value of Options Exercised (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Total exercise intrinsic value of options exercised | $ 25,974 | $ 62,625 | $ 65,884 |
STOCK BASED COMPENSATION - Outs
STOCK BASED COMPENSATION - Outstanding and Exercisable Options (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Weighted average remaining contractual life of outstanding options | 5 years 3 months | 5 years 8 months 12 days | 6 years 1 month 6 days |
Total aggregate intrinsic value of outstanding options | $ 25,100 | $ 162,400 | $ 269,900 |
Weighted average remaining contractual life of exercisable options | 4 years 4 months 24 days | 4 years 8 months 12 days | 5 years 1 month 6 days |
Total aggregate intrinsic value of exercisable options | $ 25,100 | $ 130,600 | $ 178,300 |
STOCK BASED COMPENSATION - Opti
STOCK BASED COMPENSATION - Options Outstanding and Exercisable by Price Range (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares | 5,468,732 | 5,334,803 | |
Options Outstanding, Outstanding Average Remaining Life | 5 years 3 months | 5 years 8 months 12 days | 6 years 1 month 6 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 96.90 | $ 92.02 | |
Options Exercisable, Shares | 2,999,940 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 83.60 | ||
$38.57 - $51.55 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Price, Lower Range Limit | 38.57 | ||
Range of Exercise Price, Upper Range Limit | $ 51.55 | ||
Options Outstanding, Shares | 688,413 | ||
Options Outstanding, Outstanding Average Remaining Life | 2 years 6 months 15 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 49.22 | ||
Options Exercisable, Shares | 688,413 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 49.22 | ||
$52.05 - $85.00 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Price, Lower Range Limit | 52.05 | ||
Range of Exercise Price, Upper Range Limit | $ 85 | ||
Options Outstanding, Shares | 790,945 | ||
Options Outstanding, Outstanding Average Remaining Life | 3 years 4 months 13 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 74.35 | ||
Options Exercisable, Shares | 776,730 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 74.21 | ||
$85.02 - $87.04 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Price, Lower Range Limit | 85.02 | ||
Range of Exercise Price, Upper Range Limit | $ 87.04 | ||
Options Outstanding, Shares | 547,178 | ||
Options Outstanding, Outstanding Average Remaining Life | 5 years 15 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 86.25 | ||
Options Exercisable, Shares | 406,676 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 86.26 | ||
$87.26 - $95.74 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Price, Lower Range Limit | 87.26 | ||
Range of Exercise Price, Upper Range Limit | $ 95.74 | ||
Options Outstanding, Shares | 112,302 | ||
Options Outstanding, Outstanding Average Remaining Life | 4 years 11 months 23 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 90.15 | ||
Options Exercisable, Shares | 98,496 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 89.79 | ||
$95.87 - $95.87 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Price, Lower Range Limit | 95.87 | ||
Range of Exercise Price, Upper Range Limit | $ 95.87 | ||
Options Outstanding, Shares | 651,362 | ||
Options Outstanding, Outstanding Average Remaining Life | 6 years 26 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 95.87 | ||
Options Exercisable, Shares | 357,219 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 95.87 | ||
$96.11 - $110.14 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Price, Lower Range Limit | 96.11 | ||
Range of Exercise Price, Upper Range Limit | $ 110.14 | ||
Options Outstanding, Shares | 96,758 | ||
Options Outstanding, Outstanding Average Remaining Life | 7 years 6 months 26 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 101.37 | ||
Options Exercisable, Shares | 20,460 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 101.12 | ||
$111.12 - $111.12 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Price, Lower Range Limit | 111.12 | ||
Range of Exercise Price, Upper Range Limit | $ 111.12 | ||
Options Outstanding, Shares | 847,751 | ||
Options Outstanding, Outstanding Average Remaining Life | 7 years 1 month 6 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 111.12 | ||
Options Exercisable, Shares | 325 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 111.12 | ||
$111.20 - $115.54 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Price, Lower Range Limit | 111.20 | ||
Range of Exercise Price, Upper Range Limit | $ 115.54 | ||
Options Outstanding, Shares | 135,502 | ||
Options Outstanding, Outstanding Average Remaining Life | 6 years 5 months 23 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 112.19 | ||
Options Exercisable, Shares | 99,661 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 112.25 | ||
$115.69 - $115.69 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Price, Lower Range Limit | 115.69 | ||
Range of Exercise Price, Upper Range Limit | $ 115.69 | ||
Options Outstanding, Shares | 660,918 | ||
Options Outstanding, Outstanding Average Remaining Life | 5 years 1 month 13 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 115.69 | ||
Options Exercisable, Shares | 268,217 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 115.69 | ||
$115.82 - $141.56 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Price, Lower Range Limit | 115.82 | ||
Range of Exercise Price, Upper Range Limit | $ 141.56 | ||
Options Outstanding, Shares | 937,603 | ||
Options Outstanding, Outstanding Average Remaining Life | 6 years 5 months 1 day | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 129.90 | ||
Options Exercisable, Shares | 283,743 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 129.58 | ||
$38.57 - $141.56 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of Exercise Price, Lower Range Limit | 38.57 | ||
Range of Exercise Price, Upper Range Limit | $ 141.56 | ||
Options Outstanding, Shares | 5,468,732 | ||
Options Outstanding, Outstanding Average Remaining Life | 5 years 3 months | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 96.90 | ||
Options Exercisable, Shares | 2,999,940 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 83.60 |
STOCK BASED COMPENSATION - Assu
STOCK BASED COMPENSATION - Assumptions used in Black-Scholes Model (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Stock options granted (shares) | 1,100,492 | 1,056,490 | 981,583 |
Weighted average fair value at grant date | $ 20.16 | $ 22.90 | $ 21.31 |
Expected term (in years) | 4 years 9 months 7 days | 4 years 9 months 15 days | 4 years 9 months 4 days |
Expected volatility | 18.28% | 16.71% | 17.23% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk free interest rate | 1.21% | 1.47% | 1.53% |
STOCK BASED COMPENSATION - Info
STOCK BASED COMPENSATION - Information Related to RSUs (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Total aggregate intrinsic value of outstanding units | $ 8,847 | $ 8,441 | $ 8,337 |
Per share fair value of units granted (in dollars per share) | $ 106.01 | $ 114.27 | $ 115.67 |
STOCK BASED COMPENSATION - Rest
STOCK BASED COMPENSATION - Restricted Stock Units Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Units | |||
Non-vested at beginning of year | 71,451 | ||
Granted | 78,237 | ||
Forfeited | (34,850) | ||
Non-vested at December 31, 2016 | 114,838 | 71,451 | |
Weighted Average Grant Date Fair Value Per Share | |||
Non-vested at beginning of year | $ 101.29 | ||
Granted | 106.01 | $ 114.27 | $ 115.67 |
Forfeited | 102.25 | ||
Non-vested at December 31, 2016 | $ 104.22 | $ 101.29 |
PREFERRED STOCK - Additional In
PREFERRED STOCK - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 15, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | |||||||
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | ||||
Preferred stock, issued (in shares) | 726,500 | 726,500 | 770,000 | ||||
Preferred stock, outstanding (in shares) | 726,500 | 726,500 | 770,000 | ||||
Depositary shares (in shares) | 7,700,000 | ||||||
Preferred stock, dividend rate | 5.25% | ||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||
Gross proceeds from issuance of preferred stock | $ 770,000 | ||||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | ||||||
Depositary Shares, Liquidation Preference Per Share | $ 100 | ||||||
Dividends paid on mandatory convertible preferred stock | $ 39,414 | $ 10,106 | $ 0 | ||||
Increase to retained earnings on repurchase of mandatory convertible preferred stock | $ 11,285 | $ 0 | $ 0 | ||||
Depositary shares repurchased during period (in shares) | 105,000 | 265,000 | 65,000 | 435,000 | |||
Depository shares equivalent to preferred stock units (in shares) | 43,500 | 43,500 | |||||
Minimum | |||||||
Class of Stock [Line Items] | |||||||
Common stock issuable upon conversion (in shares) | 5.8716 | ||||||
Maximum | |||||||
Class of Stock [Line Items] | |||||||
Common stock issuable upon conversion (in shares) | 7.3394 | ||||||
Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Issuance of preferred stock (in dollars per share) | $ 100 |
PREFERRED STOCK - Repurchases o
PREFERRED STOCK - Repurchases of Depository Shares of Mandatory Convertible Preferred Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | |
Equity [Abstract] | ||||
Number of Depository Shares Repurchased | 105,000 | 265,000 | 65,000 | 435,000 |
Amount Paid for Repurchases | $ 6,647 | $ 19,238 | $ 5,025 | $ 30,910 |
Average Price Paid per Share | $ 63.30 | $ 72.60 | $ 77.31 | $ 71.06 |
EARNINGS PER COMMON SHARE - Com
EARNINGS PER COMMON SHARE - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
Net income attributable to Stericycle, Inc. | $ 18,744 | $ 64,795 | $ 46,034 | $ 76,786 | $ 80,827 | $ 69,449 | $ 87,830 | $ 28,940 | $ 206,359 | $ 267,046 | $ 326,456 |
Mandatory convertible preferred stock dividend | 39,414 | 10,106 | 0 | ||||||||
Gain on repurchase of preferred stock | (11,285) | 0 | 0 | ||||||||
Net Income Attributable to Stericycle, Inc. Common Shareholders | $ 12,721 | $ 61,536 | $ 37,293 | $ 66,680 | $ 70,721 | $ 69,449 | $ 87,830 | $ 28,940 | $ 178,230 | $ 256,940 | $ 326,456 |
Denominator: | |||||||||||
Denominator for basic earnings per share-weighted average shares (in shares) | 84,932,402 | 84,944,841 | 84,932,792 | ||||||||
Effect of diluted securities: | |||||||||||
Employee stock based awards (in shares) | 677,817 | 1,217,768 | 1,300,820 | ||||||||
Mandatory convertible preferred stock (in shares) | 0 | 0 | 0 | ||||||||
Denominator for diluted earnings per share-adjusted weighted average shares and after assumed exercises (in shares) | 85,610,219 | 86,162,609 | 86,233,612 | ||||||||
Earnings per share - Basic (in dollars per share) | $ 0.15 | $ 0.72 | $ 0.44 | $ 0.79 | $ 0.83 | $ 0.82 | $ 1.03 | $ 0.34 | $ 2.10 | $ 3.02 | $ 3.84 |
Earnings per share - Diluted (in dollars per share) | $ 0.15 | $ 0.72 | $ 0.43 | $ 0.78 | $ 0.82 | $ 0.81 | $ 1.02 | $ 0.34 | $ 2.08 | $ 2.98 | $ 3.79 |
EARNINGS PER COMMON SHARE - C73
EARNINGS PER COMMON SHARE - Computation of Basic and Diluted Net Income Per Share (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2016shares | |
Mandatory Convertible Preferred Stock | |
Antidilutive shares excluded from computation of diluted earnings per share | |
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 5,528,257 |
EARNINGS PER COMMON SHARE - Add
EARNINGS PER COMMON SHARE - Additional Information (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Options [Member] | |||
Antidilutive shares excluded from computation of diluted earnings per share | |||
Shares excluded from computation of diluted earnings per share | 3,411,370 | 818,093 | 830,755 |
Shares excluded from computation of diluted earnings per share, exercise price, lower range limit (in dollars per share) | $ 83.49 | $ 117.09 | $ 105.12 |
Shares excluded from computation of diluted earnings per share, exercise price, upper range limit (in dollars per share) | $ 141.56 | $ 141.56 | $ 132.95 |
Restricted Stock Units (RSUs) | |||
Antidilutive shares excluded from computation of diluted earnings per share | |||
Shares excluded from computation of diluted earnings per share | 48,042 |
ACCUMULATED OTHER COMPREHENSI75
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of Total Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income (loss) loss, beginning balance | $ (282,631) | $ (138,419) | $ (56,468) |
Period change | (85,012) | (144,212) | (81,951) |
Accumulated other comprehensive income (loss), ending balance | (367,643) | (282,631) | (138,419) |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income (loss) loss, beginning balance | (276,040) | (135,231) | (55,010) |
Period change | (86,340) | (140,809) | (80,221) |
Accumulated other comprehensive income (loss), ending balance | (362,380) | (276,040) | (135,231) |
Unrealized Gains (Losses) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income (loss) loss, beginning balance | (6,591) | (3,188) | (1,458) |
Period change | 1,328 | (3,403) | (1,730) |
Accumulated other comprehensive income (loss), ending balance | $ (5,263) | $ (6,591) | $ (3,188) |
ACCUMULATED OTHER COMPREHENSI76
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||
Tax impact of unrealized gains/ (losses) on cash flow hedges in accumulated other comprehensive income | $ (0.8) | $ 2.2 | $ 0.6 |
PROPERTY, PLANT AND EQUIPMENT77
PROPERTY, PLANT AND EQUIPMENT (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | $ 1,219,109 | $ 1,091,621 | |
Less: accumulated depreciation | (495,215) | (426,019) | |
Property, plant and equipment, net | 723,894 | 665,602 | $ 460,408 |
Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 66,335 | 65,621 | |
Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 197,608 | 166,874 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 314,288 | 314,252 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 173,169 | 136,379 | |
Containers | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 226,733 | 190,454 | |
Office equipment and furniture | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 146,780 | 117,632 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | 38,886 | 46,979 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant & equipment | $ 55,310 | $ 53,430 |
GOODWILL AND OTHER INTANGIBLE78
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($)Segment | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Intangible Assets By Major Class [Line Items] | |||||||||||
Goodwill impairment charge | $ 0 | ||||||||||
Indefinite-lived assets impairment charges | 1,406,000 | $ 4,177,000 | |||||||||
Aggregate intangible amortization expense | $ 26,989,000 | $ 33,128,000 | $ 50,909,000 | $ 18,274,000 | $ 18,541,000 | $ 9,239,000 | $ 8,921,000 | $ 8,797,000 | $ 129,300,000 | 45,498,000 | $ 32,692,000 |
Customer relationships | |||||||||||
Intangible Assets By Major Class [Line Items] | |||||||||||
Finite-lived intangible assets, weighted average remaining useful life | 15 years 2 months 12 days | ||||||||||
Customer relationships | Minimum | |||||||||||
Intangible Assets By Major Class [Line Items] | |||||||||||
Finite-lived intangible assets, useful life | 5 years | ||||||||||
Customer relationships | Maximum | |||||||||||
Intangible Assets By Major Class [Line Items] | |||||||||||
Finite-lived intangible assets, useful life | 40 years | ||||||||||
Covenants not-to-compete | |||||||||||
Intangible Assets By Major Class [Line Items] | |||||||||||
Finite-lived intangible assets, weighted average remaining useful life | 3 years 6 months | ||||||||||
Covenants not-to-compete | Minimum | |||||||||||
Intangible Assets By Major Class [Line Items] | |||||||||||
Finite-lived intangible assets, useful life | 5 years | ||||||||||
Covenants not-to-compete | Maximum | |||||||||||
Intangible Assets By Major Class [Line Items] | |||||||||||
Finite-lived intangible assets, useful life | 14 years | ||||||||||
Tradenames | |||||||||||
Intangible Assets By Major Class [Line Items] | |||||||||||
Finite-lived intangible assets, weighted average remaining useful life | 17 years 7 months 6 days | ||||||||||
Tradenames | Minimum | |||||||||||
Intangible Assets By Major Class [Line Items] | |||||||||||
Finite-lived intangible assets, useful life | 10 years | ||||||||||
Tradenames | Maximum | |||||||||||
Intangible Assets By Major Class [Line Items] | |||||||||||
Finite-lived intangible assets, useful life | 40 years | ||||||||||
Other intangibles | |||||||||||
Intangible Assets By Major Class [Line Items] | |||||||||||
Finite-lived intangible assets, weighted average remaining useful life | 17 years 4 months 24 days | ||||||||||
International Regulated and Compliance Services | |||||||||||
Intangible Assets By Major Class [Line Items] | |||||||||||
Number of reporting units | Segment | 3 | ||||||||||
Aggregate intangible amortization expense | $ 25,730,000 | 14,926,000 | 13,298,000 | ||||||||
Domestic and Canada RCS | |||||||||||
Intangible Assets By Major Class [Line Items] | |||||||||||
Number of reporting units | Segment | 4 | ||||||||||
Aggregate intangible amortization expense | $ 95,640,000 | $ 22,714,000 | $ 12,728,000 |
GOODWILL AND OTHER INTANGIBLE79
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 3,758,177 | $ 2,418,832 |
Goodwill acquired during year | 52,769 | 1,450,950 |
Purchase accounting adjustments | (161,189) | (28,277) |
Other changes | (440) | |
Goodwill write-offs related to disposition and assets held for sale | (7,486) | |
Changes due to foreign currency fluctuations | (51,251) | (82,888) |
Ending Balance | 3,591,020 | 3,758,177 |
Domestic and Canada RCS | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 2,842,711 | 1,638,529 |
Goodwill acquired during year | 41,517 | 1,231,219 |
Purchase accounting adjustments | (77,247) | (8,072) |
Other changes | 0 | |
Goodwill write-offs related to disposition and assets held for sale | 0 | |
Changes due to foreign currency fluctuations | 4,820 | (18,965) |
Ending Balance | 2,811,801 | 2,842,711 |
International Regulated and Compliance Services | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 632,491 | 521,338 |
Goodwill acquired during year | 8,381 | 192,737 |
Purchase accounting adjustments | (78,894) | (17,221) |
Other changes | (440) | |
Goodwill write-offs related to disposition and assets held for sale | (7,486) | |
Changes due to foreign currency fluctuations | (56,071) | (63,923) |
Ending Balance | 498,421 | 632,491 |
Other | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 282,975 | 258,965 |
Goodwill acquired during year | 2,871 | 26,994 |
Purchase accounting adjustments | (5,048) | (2,984) |
Other changes | 0 | |
Goodwill write-offs related to disposition and assets held for sale | 0 | |
Changes due to foreign currency fluctuations | 0 | 0 |
Ending Balance | $ 280,798 | $ 282,975 |
GOODWILL AND OTHER INTANGIBLE80
GOODWILL AND OTHER INTANGIBLE ASSETS - Carrying Values of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible Assets By Major Class [Line Items] | |||
Gross Carrying Amount | $ 2,133,541 | $ 1,993,586 | |
Accumulated Amortization | 271,568 | 151,025 | |
Net Value | 1,861,973 | 1,842,561 | $ 909,645 |
Operating permits | |||
Intangible Assets By Major Class [Line Items] | |||
Carrying Amount, Indefinite Lived Intangible Assets | 229,396 | 233,101 | |
Tradenames | |||
Intangible Assets By Major Class [Line Items] | |||
Carrying Amount, Indefinite Lived Intangible Assets | 316,472 | 426,498 | |
Customer relationships | |||
Intangible Assets By Major Class [Line Items] | |||
Gross Carrying Amount | 1,553,398 | 1,304,388 | |
Accumulated Amortization | 261,306 | 144,020 | |
Net Value | 1,292,092 | 1,160,368 | |
Covenants not-to-compete | |||
Intangible Assets By Major Class [Line Items] | |||
Gross Carrying Amount | 9,491 | 6,878 | |
Accumulated Amortization | 6,371 | 5,141 | |
Net Value | 3,120 | 1,737 | |
Tradenames | |||
Intangible Assets By Major Class [Line Items] | |||
Gross Carrying Amount | 5,708 | 3,819 | |
Accumulated Amortization | 1,365 | 948 | |
Net Value | 4,343 | 2,871 | |
Other | |||
Intangible Assets By Major Class [Line Items] | |||
Gross Carrying Amount | 19,076 | 18,902 | |
Accumulated Amortization | 2,526 | 916 | |
Net Value | $ 16,550 | $ 17,986 |
GOODWILL AND OTHER INTANGIBLE81
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Carrying Amount of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-lived and Indefinite-lived Intangible Assets [Roll Forward] | |||||||||||
Beginning of period | $ 1,842,561 | $ 909,645 | $ 1,842,561 | $ 909,645 | |||||||
Intangible assets acquired during the year | 35,564 | 1,016,775 | |||||||||
Valuation adjustments for prior year acquisitions | 168,979 | 35,241 | |||||||||
Intangible write-offs due to disposition and assets held for sale | (15,961) | ||||||||||
Impairments during the year | (1,406) | (4,177) | |||||||||
Amortization during the year | $ (26,989) | $ (33,128) | $ (50,909) | $ (18,274) | $ (18,541) | $ (9,239) | $ (8,921) | $ (8,797) | (129,300) | (45,498) | $ (32,692) |
Changes due to foreign currency fluctuations | (38,464) | (69,425) | |||||||||
End of period | $ 1,861,973 | $ 1,842,561 | $ 1,861,973 | $ 1,842,561 | $ 909,645 |
GOODWILL AND OTHER INTANGIBLE82
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expense (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,017 | $ 116,265 |
2,018 | 116,127 |
2,019 | 115,738 |
2,020 | 115,045 |
2,021 | $ 113,919 |
ACCRUED LIABILITIES - Schedule
ACCRUED LIABILITIES - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Accrued compensation | $ 64,586 | $ 62,721 |
Accrued insurance | 53,637 | 43,390 |
Accrued taxes | 18,289 | 27,363 |
Accrued interest | 14,123 | 13,829 |
Accrued professional services liabilities | 10,109 | 6,948 |
Accrued liabilities - other | 67,782 | 43,078 |
Total accrued liabilities | $ 228,526 | $ 197,329 |
DEBT - Schedule of Long-Term De
DEBT - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total debt | $ 2,959,316 | $ 3,214,048 |
Less: current portion of total debt | 72,822 | 161,409 |
Less: unamortized debt issuance costs | 9,179 | 12,287 |
Long-term portion of total debt | 2,877,315 | 3,040,352 |
Obligations under capital leases | ||
Debt Instrument [Line Items] | ||
Total debt | 11,121 | 15,024 |
$1.2 billion senior credit facility weighted average rate 2.14%, due in 2019 | ||
Debt Instrument [Line Items] | ||
Total debt | 407,119 | 353,763 |
$1.0 billion term loan weighted average rate 2.07%, due in 2020 | ||
Debt Instrument [Line Items] | ||
Total debt | 1,000,000 | 1,250,000 |
$175 million private placement notes 3.89%, due in 2017 | ||
Debt Instrument [Line Items] | ||
Total debt | 175,000 | 175,000 |
$125 million private placement notes 2.68%, due in 2019 | ||
Debt Instrument [Line Items] | ||
Total debt | 125,000 | 125,000 |
$225 million private placement notes 4.47%, due in 2020 | ||
Debt Instrument [Line Items] | ||
Total debt | 225,000 | 225,000 |
$150 million private placement notes 2.89%, due in 2021 | ||
Debt Instrument [Line Items] | ||
Total debt | 150,000 | 150,000 |
$125 million private placement notes 3.26%, due in 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | 125,000 | 125,000 |
$200 million private placement notes 2.72%, due in 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | 200,000 | 200,000 |
$100 million private placement notes 2.79%, due in 2023 | ||
Debt Instrument [Line Items] | ||
Total debt | 100,000 | 100,000 |
$150 million private placement notes 3.18%, due in 2023 | ||
Debt Instrument [Line Items] | ||
Total debt | 150,000 | 150,000 |
Promissory notes and deferred consideration weighted average rate of 2.43% and weighted average maturity of 3.2 years | ||
Debt Instrument [Line Items] | ||
Total debt | 191,648 | 239,731 |
Foreign bank debt weighted average rate 6.51% and weighted average maturity of 2.1 years | ||
Debt Instrument [Line Items] | ||
Total debt | $ 99,428 | $ 105,530 |
DEBT - Schedule of Long-Term 85
DEBT - Schedule of Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
$1.2 billion senior credit facility weighted average rate 2.14%, due in 2019 | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity of line of credit facility | $ 1,200,000,000 |
Long-term debt, weighted average interest rate | 2.14% |
$1.0 billion term loan weighted average rate 2.07%, due in 2020 | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity of line of credit facility | $ 1,000,000,000 |
Stated interest rate | 2.07% |
$175 million private placement notes 3.89%, due in 2017 | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.89% |
Long-term debt, face amount | $ 175,000,000 |
$125 million private placement notes 2.68%, due in 2019 | |
Debt Instrument [Line Items] | |
Stated interest rate | 2.68% |
Long-term debt, face amount | $ 125,000,000 |
$225 million private placement notes 4.47%, due in 2020 | |
Debt Instrument [Line Items] | |
Stated interest rate | 4.47% |
Long-term debt, face amount | $ 225,000,000 |
$150 million private placement notes 2.89%, due in 2021 | |
Debt Instrument [Line Items] | |
Stated interest rate | 2.89% |
Long-term debt, face amount | $ 150,000,000 |
$125 million private placement notes 3.26%, due in 2022 | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.26% |
Long-term debt, face amount | $ 125,000,000 |
$200 million private placement notes 2.72%, due in 2022 | |
Debt Instrument [Line Items] | |
Stated interest rate | 2.72% |
Long-term debt, face amount | $ 200,000,000 |
$100 million private placement notes 2.79%, due in 2023 | |
Debt Instrument [Line Items] | |
Stated interest rate | 2.79% |
Long-term debt, face amount | $ 100,000,000 |
$150 million private placement notes 3.18%, due in 2023 | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.18% |
Long-term debt, face amount | $ 150,000,000 |
Promissory notes and deferred consideration weighted average rate of 2.43% and weighted average maturity of 3.2 years | |
Debt Instrument [Line Items] | |
Long-term debt, weighted average interest rate | 2.43% |
Long-term debt, maturity | 3 years 2 months 12 days |
Foreign bank debt weighted average rate 6.51% and weighted average maturity of 2.1 years | |
Debt Instrument [Line Items] | |
Long-term debt, weighted average interest rate | 6.51% |
Long-term debt, maturity | 2 years 1 month 6 days |
DEBT - Additional Information (
DEBT - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Interest paid | $ 88,800,000 | $ 68,000,000 | $ 57,800,000 |
$1.20 billion senior credit facility weighted average rate 2.14%, due in 2019 | |||
Debt Instrument [Line Items] | |||
Revolving credit facility, amount committed to outstanding letters of credit | 138,000,000 | 160,400,000 | |
Revolving credit facility, unused portion | 654,900,000 | $ 685,800,000 | |
Maximum borrowing capacity of line of credit facility | 1,200,000,000 | ||
$175 million private placement notes 3.89%, due in 2017 | |||
Debt Instrument [Line Items] | |||
Long-term debt, face amount | $ 175,000,000 |
DEBT - Payments Due on Long-Ter
DEBT - Payments Due on Long-Term Debt, Excluding Capital Lease Obligations (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 70,017 |
2,018 | 208,328 |
2,019 | 1,044,598 |
2,020 | 878,011 |
2,021 | 161,474 |
Thereafter | 585,767 |
Long-term debt | $ 2,948,195 |
DEBT - Property under Capital L
DEBT - Property under Capital Leases Included within Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Capital Leased Assets [Line Items] | ||
Less: accumulated depreciation | $ (5,523) | $ (7,148) |
Capital Leases, Balance Sheet,Property under capital leases, net Assets by Major Class, Net | 11,944 | 15,843 |
Land | ||
Capital Leased Assets [Line Items] | ||
Property under capital leases, gross | 151 | 157 |
Building | ||
Capital Leased Assets [Line Items] | ||
Property under capital leases, gross | 775 | 804 |
Machinery and equipment | ||
Capital Leased Assets [Line Items] | ||
Property under capital leases, gross | 6,634 | 6,105 |
Vehicles | ||
Capital Leased Assets [Line Items] | ||
Property under capital leases, gross | $ 9,907 | $ 15,925 |
DEBT - Minimum Future Lease Pay
DEBT - Minimum Future Lease Payments under Capital Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 3,692 |
2,018 | 2,759 |
2,019 | 2,614 |
2,020 | 2,093 |
2,021 | 2,119 |
Thereafter | 106 |
Total minimum lease payments | 13,383 |
Less: amounts representing interest | (2,262) |
Present value of net minimum lease payments | 11,121 |
Less: current portion included in current portion of long-term debt | (2,805) |
Long-term obligations under capital leases | $ 8,316 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||
Environmental remediation liabilities | $ 30.9 | $ 30.8 | |
Environmental remediation liabilities, projection term | 30 years | ||
Operating lease obligations, Latest year of maturity | 2,035 | ||
Rent expense | $ 181.6 | 139 | $ 111.5 |
Accrued Liabilities [Member] | |||
Loss Contingencies [Line Items] | |||
Environmental remediation liabilities | $ 2.4 | $ 2.1 |
COMMITMENTS AND CONTINGENCIES91
COMMITMENTS AND CONTINGENCIES - Minimum Future Rental Payments under Non-Cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 116,473 |
2,018 | 96,215 |
2,019 | 78,587 |
2,020 | 59,571 |
2,021 | 43,858 |
Thereafter | 63,383 |
Minimum future rental payments under operating leases | $ 458,087 |
COMMITMENTS AND CONTINGENCIES92
COMMITMENTS AND CONTINGENCIES - Schedule of Future Payments under Contractual Obligations Not Recognized in Consolidated Balance Sheets (Detail) - Technology Products And Services $ in Thousands | Dec. 31, 2016USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2,017 | $ 31,840 |
2,018 | 16,370 |
2,019 | 15,989 |
2,020 | 15,855 |
Future payments under contractual obligations | $ 80,054 |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 2 |
SEGMENT REPORTING - Financial I
SEGMENT REPORTING - Financial Information Concerning Company's Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 906,396 | $ 890,144 | $ 891,621 | $ 874,181 | $ 888,304 | $ 718,596 | $ 715,689 | $ 663,319 | $ 3,562,342 | $ 2,985,908 | $ 2,555,601 |
Gross Profit | 372,415 | 379,260 | 381,095 | 369,184 | 380,355 | 299,675 | 304,824 | 281,331 | 1,501,954 | 1,266,185 | 1,094,411 |
Amortization | 26,989 | $ 33,128 | $ 50,909 | $ 18,274 | 18,541 | $ 9,239 | $ 8,921 | $ 8,797 | 129,300 | 45,498 | 32,692 |
EBITA | 727,624 | 707,477 | 648,015 | ||||||||
Total Assets | 6,980,061 | 7,065,163 | 6,980,061 | 7,065,163 | 4,373,302 | ||||||
Domestic and Canada RCS | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,508,865 | 1,999,196 | 1,667,353 | ||||||||
Gross Profit | 1,124,815 | 912,220 | 772,518 | ||||||||
Amortization | 95,640 | 22,714 | 12,728 | ||||||||
EBITA | 688,161 | 631,395 | 594,204 | ||||||||
Total Assets | 5,094,107 | 4,913,485 | 5,094,107 | 4,913,485 | 2,616,751 | ||||||
International Regulated and Compliance Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 751,677 | 716,771 | 663,889 | ||||||||
Gross Profit | 228,484 | 230,323 | 216,377 | ||||||||
Amortization | 25,730 | 14,926 | 13,298 | ||||||||
EBITA | 58,027 | 89,064 | 98,494 | ||||||||
Total Assets | 1,357,047 | 1,636,382 | 1,357,047 | 1,636,382 | 1,291,671 | ||||||
All Other Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 301,800 | 269,941 | 224,359 | ||||||||
Gross Profit | 148,655 | 123,642 | 105,516 | ||||||||
Amortization | 7,930 | 7,858 | 6,666 | ||||||||
EBITA | (18,564) | (12,982) | (44,683) | ||||||||
Total Assets | $ 528,907 | $ 515,296 | $ 528,907 | $ 515,296 | $ 464,880 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Company's Primary Measure of Segment Profitability (EBITA) to Income from Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
EBITA | $ 727,624 | $ 707,477 | $ 648,015 | ||||||||
Amortization expenses | $ (26,989) | $ (33,128) | $ (50,909) | $ (18,274) | $ (18,541) | $ (9,239) | $ (8,921) | $ (8,797) | (129,300) | (45,498) | (32,692) |
Acquisition expenses | (9,646) | (39,138) | (13,333) | ||||||||
Integration expenses | (26,579) | (19,162) | (22,578) | (19,268) | (20,432) | (13,447) | (8,924) | (8,886) | (87,587) | (51,689) | (25,968) |
Litigation and professional services expenses | (7,459) | (1,481) | (2,664) | (1,300) | (12,904) | (59,651) | (6,574) | ||||
Change in fair value of contingent consideration | (34) | (559) | 0 | 2,644 | 0 | 0 | (35) | 675 | 2,051 | 640 | 1,452 |
Restructuring and plant conversion expenses | (2,329) | (487) | (929) | (241) | (4,667) | (2,721) | (3,058) | (12,302) | (3,986) | (22,748) | (14,564) |
Contract exit costs | (1,187) | (10,110) | (12,708) | 0 | (24,005) | ||||||
Asset impairment charges | $ (28,468) | $ (4) | $ 0 | $ 0 | $ (1,781) | $ 0 | $ 0 | $ 0 | (28,472) | (1,781) | |
Income from Operations | 433,775 | 487,612 | 556,336 | ||||||||
Reportable Segment | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
EBITA | 746,188 | 720,459 | 692,698 | ||||||||
Domestic and Canada RCS | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
EBITA | 688,161 | 631,395 | 594,204 | ||||||||
Amortization expenses | (95,640) | (22,714) | (12,728) | ||||||||
Domestic and Canada RCS | Reportable Segment | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
EBITA | 688,161 | 631,395 | 594,204 | ||||||||
International Regulated and Compliance Services | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
EBITA | 58,027 | 89,064 | 98,494 | ||||||||
Amortization expenses | (25,730) | (14,926) | (13,298) | ||||||||
International Regulated and Compliance Services | Reportable Segment | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
EBITA | 58,027 | 89,064 | 98,494 | ||||||||
All Other Segments | |||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||
EBITA | (18,564) | (12,982) | (44,683) | ||||||||
Amortization expenses | $ (7,930) | $ (7,858) | $ (6,666) |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Revenue Details by Service Line (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Revenues | $ 906,396 | $ 890,144 | $ 891,621 | $ 874,181 | $ 888,304 | $ 718,596 | $ 715,689 | $ 663,319 | $ 3,562,342 | $ 2,985,908 | $ 2,555,601 |
Regulated waste and compliance services | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Revenues | 2,061,416 | 2,064,866 | 1,955,761 | ||||||||
Secure Information Destruction Services | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Revenues | 747,510 | 178,085 | |||||||||
Communication and related services | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Revenues | 370,500 | 334,142 | 268,565 | ||||||||
Manufacturing and Industrial Services | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Revenues | $ 382,916 | $ 408,815 | $ 331,275 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Consolidated Revenue and Property, Plant and Equipment Split Geographically (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 906,396 | $ 890,144 | $ 891,621 | $ 874,181 | $ 888,304 | $ 718,596 | $ 715,689 | $ 663,319 | $ 3,562,342 | $ 2,985,908 | $ 2,555,601 |
Long-Lived Assets | 723,894 | 665,602 | 723,894 | 665,602 | 460,408 | ||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,657,452 | 2,165,030 | 1,788,390 | ||||||||
Long-Lived Assets | 499,070 | 434,202 | 499,070 | 434,202 | 284,788 | ||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 485,975 | 441,231 | 407,082 | ||||||||
Long-Lived Assets | 89,007 | 95,771 | 89,007 | 95,771 | 70,621 | ||||||
Other International Countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 418,915 | 379,647 | 360,129 | ||||||||
Long-Lived Assets | 135,817 | 135,629 | 135,817 | 135,629 | 104,999 | ||||||
International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 904,890 | 820,878 | 767,211 | ||||||||
Long-Lived Assets | $ 224,824 | $ 231,400 | $ 224,824 | $ 231,400 | $ 175,620 |
EMPLOYEE BENEFIT PLAN - Additio
EMPLOYEE BENEFIT PLAN - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign Defined Contribution Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions to 401(k) plan | $ 2,600,000 | $ 2,100,000 | $ 1,900,000 |
Defined Contribution Plan One [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of contribution to 401(k) defined contribution retirement savings plan by employer | 50.00% | ||
Employer 401(k) maximum annual matching contribution to each employee | $ 2,000 | ||
Defined Contribution Plan One [Member] | Domestic Defined Contribution Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions to 401(k) plan | $ 5,900,000 | 4,800,000 | $ 3,600,000 |
Defined Contribution Plan Two [Member] | Employer Match One [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of contribution to 401(k) defined contribution retirement savings plan by employer | 100.00% | ||
Percentage of contribution to 401(k) defined contribution retirement savings plan by each employee | 3.00% | ||
Defined Contribution Plan Two [Member] | Employer Match Two [Member] | |||
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 | 2.00% | ||
Defined Contribution Plan Two [Member] | Domestic Defined Contribution Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions to 401(k) plan | $ 3,300,000 | $ 900,000 |
LEGAL PROCEEDINGS - Additional
LEGAL PROCEEDINGS - Additional Information (Details) - MDNR Petition - USD ($) | Nov. 22, 2016 | Oct. 31, 2016 |
Loss Contingencies [Line Items] | ||
Consent Judgment | $ 130,000 | |
Civil penalty paid | $ 130,000 |
SELECTED QUARTERLY FINANCIAL100
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 906,396 | $ 890,144 | $ 891,621 | $ 874,181 | $ 888,304 | $ 718,596 | $ 715,689 | $ 663,319 | $ 3,562,342 | $ 2,985,908 | $ 2,555,601 |
Gross profit | 372,415 | 379,260 | 381,095 | 369,184 | 380,355 | 299,675 | 304,824 | 281,331 | 1,501,954 | 1,266,185 | 1,094,411 |
Amortization expenses | (26,989) | (33,128) | (50,909) | (18,274) | (18,541) | (9,239) | (8,921) | (8,797) | (129,300) | (45,498) | (32,692) |
Acquisition expenses | (1,784) | (2,265) | (2,607) | (2,990) | 818 | (33,674) | (2,986) | (3,296) | (9,646) | (39,138) | |
Integration expenses | (26,579) | (19,162) | (22,578) | (19,268) | (20,432) | (13,447) | (8,924) | (8,886) | (87,587) | (51,689) | (25,968) |
Litigation and professional services expenses | (7,459) | (1,481) | (2,664) | (1,300) | (12,904) | (59,651) | (6,574) | ||||
Litigation expenses | (645) | 16,444 | 173 | (75,623) | (59,651) | ||||||
Change in fair value of contingent consideration | (34) | (559) | 0 | 2,644 | 0 | 0 | (35) | 675 | 2,051 | 640 | 1,452 |
Restructuring and plant conversion expenses | (2,329) | (487) | (929) | (241) | (4,667) | (2,721) | (3,058) | (12,302) | (3,986) | (22,748) | (14,564) |
Contract exit costs | (1,187) | (10,110) | (12,708) | 0 | (24,005) | ||||||
Asset impairment charges | (28,468) | (4) | 0 | 0 | (1,781) | 0 | 0 | 0 | (28,472) | (1,781) | |
Net income attributable to Stericycle, Inc. | 18,744 | 64,795 | 46,034 | 76,786 | 80,827 | 69,449 | 87,830 | 28,940 | 206,359 | 267,046 | 326,456 |
Net Income Attributable to Stericycle, Inc. Common Shareholders | $ 12,721 | $ 61,536 | $ 37,293 | $ 66,680 | $ 70,721 | $ 69,449 | $ 87,830 | $ 28,940 | $ 178,230 | $ 256,940 | $ 326,456 |
Earnings per share - Basic (in dollars per share) | $ 0.15 | $ 0.72 | $ 0.44 | $ 0.79 | $ 0.83 | $ 0.82 | $ 1.03 | $ 0.34 | $ 2.10 | $ 3.02 | $ 3.84 |
Earnings per share - Diluted (in dollars per share) | $ 0.15 | $ 0.72 | $ 0.43 | $ 0.78 | $ 0.82 | $ 0.81 | $ 1.02 | $ 0.34 | $ 2.08 | $ 2.98 | $ 3.79 |
SELECTED QUARTERLY FINANCIAL101
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |
Settlement expense | $ (645) | $ 16,444 | $ 173 | $ (75,623) | $ (59,651) |
Qui Tam Action | Settled Litigation | |||||
Settlement expense | 28,500 | ||||
Junk Fax Lawsuit | Settled Litigation | |||||
Settlement expense | $ 28,200 |
SCHEDULE II - VALUATION AND 102
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Period | $ 22,329 | $ 19,083 | $ 19,134 |
Additions/ (Deductions) Charged to/ (from) Expense | 41,769 | 13,650 | 9,869 |
Other Charges/(Reversals)/Changes to Reserves | 2,696 | 3,054 | 842 |
Write-offs/ Payments and Other Changes | (17,149) | (13,458) | (10,762) |
Balance End of Period | 49,645 | 22,329 | 19,083 |
Valuation Allowance on Deferred Tax Assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Period | 17,585 | 56 | 1,122 |
Additions/ (Deductions) Charged to/ (from) Expense | 6,853 | 13 | 0 |
Other Charges/(Reversals)/Changes to Reserves | (9,046) | 17,516 | (1,066) |
Balance End of Period | $ 15,392 | $ 17,585 | $ 56 |