Segment Reporting

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

SEGMENT REPORTING

9. SEGMENT REPORTING

The Company’s revenues are derived from one industry segment, which includes the collection, transfer, recycling and disposal of non-hazardous solid waste. No single contract or customer accounted for more than 10% of the Company’s total revenues at the consolidated or reportable segment level during the periods presented.

The Company manages its operations through three geographic operating segments, which are also the Company’s reportable segments. Each operating segment is responsible for managing several vertically integrated operations, which are comprised of districts. During the first quarter of 2010, the Company realigned certain of the Company’s districts between operating segments. In April 2011, as a result of the County Waste acquisition described in Note 7, the Company realigned its reporting structure and changed its three geographic operating segments from Western, Central and Southern to Western, Central and Eastern. As part of this realignment, the states of Arizona, Louisiana, New Mexico and Texas, which were previously part of the Southern region, are now included in the Central region. Also as part of this realignment, the state of Michigan, which was previously part of the Central region, is now included in the Eastern region (previously referred to as the Southern region). Additionally, the states of New York and Massachusetts, which the Company now operates in as a result of the County Waste acquisition, are included in the Eastern region. The segment information presented herein reflects the realignment of these districts. Under the current orientation, the Company’s Western Region is comprised of operating locations in California, Idaho, Montana, Nevada, Oregon, Washington and western Wyoming; the Company’s Central Region is comprised of operating locations in Arizona, Colorado, Kansas, Louisiana, Minnesota, Nebraska, New Mexico, Oklahoma, South Dakota, Texas, Utah and eastern Wyoming; and the Company’s Eastern Region is comprised of operating locations in Alabama, Illinois, Iowa, Kentucky, Massachusetts, Michigan, Mississippi, New York, North Carolina, South Carolina and Tennessee.

The Company’s Chief Operating Decision Maker (“CODM”) evaluates operating segment profitability and determines resource allocations based on operating income before depreciation, amortization and gain (loss) on disposal of assets. Operating income before depreciation, amortization and gain (loss) on disposal of assets is not a measure of operating income, operating performance or liquidity under GAAP and may not be comparable to similarly titled measures reported by other companies. The Company’s management uses operating income before depreciation, amortization and gain (loss) on disposal of assets in the evaluation of segment operating performance as it is a profit measure that is generally within the control of the operating segments. A reconciliation of operating income before depreciation, amortization and gain (loss) on disposal of assets to income before income tax provision is included at the end of this Note 9.

Summarized financial information concerning the Company’s reportable segments for the three and nine months ended September 30, 2011 and 2010, is shown in the following tables:

								Operating Income
								Before Depreciation,
								Amortization and
	Gross		Intercompany			Net		Gain (Loss) on
Three Months Ended September 30, 2011	Revenues		Revenues(b)			Revenues		Disposal of Assets(c)
Western	$	223,156	$	(25,896	)	$	197,260	$	65,306
Central		126,389		(13,538	)		112,851		40,174
Eastern		112,140		(18,289	)		93,851		27,179
Corporate(a)		—		—			—		1,695
	$	461,685	$	(57,723	)	$	403,962	$	134,354

								Operating Income
								Before Depreciation,
								Amortization and
	Gross		Intercompany			Net		Gain (Loss) on
Three Months Ended September 30, 2010	Revenues		Revenues(b)			Revenues		Disposal of Assets(c)
Western	$	212,262	$	(23,724	)	$	188,538	$	60,500
Central		113,963		(13,384	)		100,579		33,792
Eastern		70,069		(13,401	)		56,668		17,379
Corporate(a)		—		—			—		2,021
	$	396,294	$	(50,509	)	$	345,785	$	113,692

								Operating Income
								Before Depreciation,
								Amortization and
	Gross		Intercompany			Net		Gain (Loss) on
Nine Months Ended September 30, 2011	Revenues		Revenues(b)			Revenues		Disposal of Assets(c)
Western	$	633,784	$	(74,407	)	$	559,377	$	177,593
Central		362,351		(38,589	)		323,762		115,261
Eastern		291,910		(49,435	)		242,475		70,856
Corporate(a)		—		—			—		3,351
	$	1,288,045	$	(162,431	)	$	1,125,614	$	367,061

								Operating Income
								Before Depreciation,
								Amortization and
	Gross		Intercompany			Net		Gain (Loss) on
Nine Months Ended September 30, 2010	Revenues		Revenues(b)			Revenues		Disposal of Assets(c)
Western	$	600,111	$	(68,609	)	$	531,502	$	164,737
Central		322,891		(37,599	)		285,292		94,794
Eastern		206,007		(38,999	)		167,008		52,074
Corporate(a)		—		—			—		3,758
	$	1,129,009	$	(145,207	)	$	983,802	$	315,363

(a)	Corporate functions include accounting, legal, tax, treasury, information technology, risk management, human resources, training and other administrative functions.
(b)	Intercompany revenues reflect each segment’s total intercompany sales, including intercompany sales within a segment and between segments. Transactions within and between segments are generally made on a basis intended to reflect the market value of the service.
(c)	For those items included in the determination of operating income before depreciation, amortization and gain (loss) on disposal of assets, the accounting policies of the segments are the same as those described in the Company’s most recent Annual Report on Form 10-K.

Total assets for each of the Company’s reportable segments at September 30, 2011 and December 31, 2010, based on region alignments as of those dates, were as follows:

	September 30,		December 31,
	2011		2010
Western	$	1,363,025	$	1,378,920
Central		1,031,345		654,854
Eastern		827,874		818,648
Corporate		89,761		63,562
Total Assets	$	3,312,005	$	2,915,984

The following tables show changes in goodwill during the nine months ended September 30, 2011 and 2010, by reportable segment:

	Western		Central		Eastern			Total
Balance as of December 31, 2010	$	313,038	$	305,774	$	309,040		$	927,852
Goodwill transferred		—		111,806		(111,806	)		—
Goodwill acquired		—		6,638		173,157			179,795
Goodwill divested		—		—		—			—
Balance as of September 30, 2011	$	313,038	$	424,218	$	370,391		$	1,107,647

	Western		Central			Eastern			Total
Balance as of December 31, 2009	$	291,781	$	313,366		$	301,563		$	906,710
Goodwill transferred		20,295		(20,295	)		—			—
Goodwill acquired		731		2,304			1,716			4,751
Goodwill divested		—		(64	)		(1,111	)		(1,175	)
Balance as of September 30, 2010	$	312,807	$	295,311		$	302,168		$	910,286

The Company has no accumulated impairment losses associated with goodwill.

A reconciliation of the Company’s primary measure of segment profitability (operating income before depreciation, amortization and gain (loss) on disposal of assets for reportable segments) to Income before income tax provision in the Condensed Consolidated Statements of Income is as follows:

	Three months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
Operating income before depreciation, amortization and gain (loss) on disposal of assets	$	134,354		$	113,692		$	367,061		$	315,363
Depreciation		(38,868	)		(34,441	)		(108,843	)		(99,349	)
Amortization of intangibles		(5,138	)		(3,616	)		(14,788	)		(10,800	)
Gain (loss) on disposal of assets		(1,034	)		50			(742	)		(572	)
Interest expense		(12,029	)		(9,419	)		(31,948	)		(30,842	)
Interest income		132			135			408			453
Loss on extinguishment of debt		—			—			—			(10,193	)
Other income (expense), net		(899	)		1,500			(750	)		1,970
Income before income tax provision	$	76,518		$	67,901		$	210,398		$	166,030

The following table shows, for the periods indicated, the Company’s total reported revenues by service line and with intercompany eliminations:

	Three months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
Collection	$	282,176		$	244,936		$	796,783		$	712,114
Disposal and transfer		138,680			125,473			381,961			342,390
Intermodal, recycling and other		40,829			25,885			109,301			74,505
		461,685			396,294			1,288,045			1,129,009
Less: intercompany elimination		(57,723	)		(50,509	)		(162,431	)		(145,207	)
Total revenues	$	403,962		$	345,785		$	1,125,614		$	983,802