Segment Reporting

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting

15.SEGMENT REPORTING 

The Company’s revenues are generated from the collection, transfer, recycling and disposal of non-hazardous solid waste and the treatment, recovery and disposal of non-hazardous E&P waste.  No single contract or customer accounted for more than 10% of the Company’s total revenues at the consolidated or reportable segment level during the periods presented. 

The Company manages its operations through three geographic operating segments (Western, Central and Eastern), and its E&P segment, which includes the majority of the Company’s E&P waste treatment and disposal operations.  The Company’s three geographic operating segments and its E&P segment comprise the Company’s reportable segments.  Each operating segment is responsible for managing several vertically integrated operations, which are comprised of districts.  The Company’s Western segment is comprised of operating locations in Alaska, California, Idaho, Montana, Nevada, Oregon, Washington and western Wyoming; the Company’s Central segment 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 segment is comprised of operating locations in Alabama, Illinois, Iowa, Kentucky, Massachusetts, Michigan, Mississippi, New York, North Carolina, South Carolina and Tennessee.  The E&P segment is comprised of the Company’s E&P operations in Louisiana, New Mexico, North Dakota, Oklahoma, Texas, Wyoming and along the Gulf of Mexico.

The Company’s Chief Operating Decision Maker evaluates operating segment profitability and determines resource allocations based on several factors, of which the primary financial measure is segment EBITDA. The Company defines segment EBITDA as earnings before interest, taxes, depreciation, amortization, loss on prior office leases, impairments and other operating charges and other income (expense).  Segment EBITDA is not a measure of operating income, operating performance or liquidity under generally accepted accounting principles and may not be comparable to similarly titled measures reported by other companies.  The Company’s management uses segment EBITDA in the evaluation of segment operating performance as it is a profit measure that is generally within the control of the operating segments.  A reconciliation of segment EBITDA to Income before income tax provision is included at the end of this Note 15.

Summarized financial information concerning the Company’s reportable segments for the years ended December 31, 2014, 2013 and 2012, is shown in the following tables: 

Year Ended December 31, 2014	Gross Revenues		Intercompany Revenues(b)		Net Revenues		Segment EBITDA(c)		Depreciation and Amortization		Capital Expenditures		Total Assets(e)
Western	$	920,116	$	(96,194)	$	823,922	$	258,126	$	79,907	$	65,227	$	1,482,474
Central		629,574		(68,094)		561,480		197,121		69,037		77,500		1,187,505
Eastern		473,983		(80,162)		393,821		116,230		53,717		60,384		852,963
E&P		314,845		(14,902)		299,943		147,261		52,709		36,608		1,609,553
Corporate(a), (d)		-		-		-		(7,434)		2,574		1,558		117,536
	$	2,338,518	$	(259,352)	$	2,079,166	$	711,304	$	257,944	$	241,277	$	5,250,031

Year Ended December 31, 2013	Gross Revenues		Intercompany Revenues(b)		Net Revenues		Segment EBITDA(c)		Depreciation and Amortization		Capital Expenditures		Total Assets(e)
Western	$	905,764	$	(99,974)	$	805,790	$	249,548	$	81,164	$	70,960	$	1,487,409
Central		573,366		(62,438)		510,928		182,790		64,165		57,952		1,173,089
Eastern		447,844		(76,072)		371,772		108,173		51,546		39,703		807,124
E&P		251,651		(11,346)		240,305		111,056		44,099		34,916		1,484,501
Corporate(a), (d)		-		-		-		(228)		2,890		6,343		112,129
	$	2,178,625	$	(249,830)	$	1,928,795	$	651,339	$	243,864	$	209,874	$	5,064,252

Year Ended December 31, 2012	Gross Revenues		Intercompany Revenues(b)		Net Revenues		Segment EBITDA(c)		Depreciation and Amortization		Capital Expenditures		Total Assets(e)
Western	$	882,228	$	(100,094)	$	782,134	$	229,427	$	78,191	$	64,583	$	1,507,081
Central		517,916		(56,041)		461,875		164,756		54,743		51,300		1,114,479
Eastern		441,907		(75,082)		366,825		101,046		49,289		32,037		826,687
E&P		52,326		(1,542)		50,784		23,651		9,018		1,971		1,493,693
Corporate(a), (d)		-		-		-		(11,073)		2,343		3,626		134,086
	$	1,894,377	$	(232,759)	$	1,661,618	$	507,807	$	193,584	$	153,517	$	5,076,026

____________________

(a)Corporate functions include accounting, legal, tax, treasury, information technology, risk management, human resources, training and other administrative functions.  Amounts reflected are net of allocations to the four operating segments.

(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 segment EBITDA, the accounting policies of the segments are the same as those described in Note 1. 

(d)Corporate assets include cash, net deferred tax assets, debt issuance costs, equity investments, and corporate facility leasehold improvements and equipment.

(e)Goodwill is included within total assets for each of the Company’s four operating segments. 

The following table shows changes in goodwill during the years ended December 31, 2013 and 2014, by reportable segment: 

	Western		Central		Eastern		E&P		Total
Balance as of December 31, 2012	$	373,143	$	430,412	$	380,561	$	452,441	$	1,636,557
Goodwill transferred		-		(9,196)		-		9,196		-
Goodwill acquired		521		37,838		564		978		39,901
Goodwill divested		(749)		-		(555)		-		(1,304)
Balance as of December 31, 2013		372,915		459,054		380,570		462,615		1,675,154
Goodwill acquired		-		1,470		11,853		5,455		18,778
Goodwill divested		-		(143)		-		-		(143)
Balance as of December 31, 2014	$	372,915	$	460,381	$	392,423	$	468,070	$	1,693,789

The Company has no accumulated impairment losses associated with goodwill.  

A reconciliation of the Company’s primary measure of segment profitability (segment EBITDA) to Income before income tax provision in the Consolidated Statements of Net Income is as follows:

	Years ended December 31,
	2014		2013		2012
Western segment EBITDA	$	258,126	$	249,548	$	229,427
Central segment EBITDA		197,121		182,790		164,756
Eastern segment EBITDA		116,230		108,173		101,046
E&P segment EBITDA		147,261		111,056		23,651
Subtotal reportable segments		718,738		651,567		518,880
Unallocated corporate overhead		(7,434)		(228)		(11,073)
Depreciation		(230,944)		(218,454)		(169,027)
Amortization of intangibles		(27,000)		(25,410)		(24,557)
Loss on prior office leases		-		(9,902)		-
Gain from litigation settlement		-		-		3,551
Impairments and other operating charges		(4,091)		(4,129)		(1,627)
Interest expense		(64,674)		(73,579)		(53,037)
Other income, net		1,067		1,056		1,993
Income before income tax provision	$	385,662	$	320,921	$	265,103

The following tables reflect a breakdown of the Company’s revenue and inter-company eliminations for the periods indicated: 

	Year Ended December 31, 2014
	Revenue		Intercompany Revenue		Reported Revenue		% of Reported Revenue
Solid waste collection	$	1,289,906	$	(3,593)	$	1,286,313		61.9%
Solid waste disposal and transfer		617,161		(235,851)		381,310		18.3
Solid waste recycling		58,226		(2,118)		56,108		2.7
E&P waste treatment, recovery and disposal		326,934		(16,862)		310,072		14.9
Intermodal and other		46,291		(928)		45,363		2.2
Total	$	2,338,518	$	(259,352)	$	2,079,166		100.0%

	Year Ended December 31, 2013
	Revenue		Intercompany Revenue		Reported Revenue		% of Reported Revenue
Solid waste collection	$	1,219,091	$	(4,304)	$	1,214,787		63.0%
Solid waste disposal and transfer		579,379		(226,897)		352,482		18.3
Solid waste recycling		71,831		(6,101)		65,730		3.4
E&P waste treatment, recovery and disposal		262,286		(11,462)		250,824		13.0
Intermodal and other		46,038		(1,066)		44,972		2.3
Total	$	2,178,625	$	(249,830)	$	1,928,795		100.0%

	Year Ended December 31, 2012
	Revenue		Intercompany Revenue		Reported Revenue		% of Reported Revenue
Solid waste collection	$	1,176,333	$	(5,545)	$	1,170,788		70.4%
Solid waste disposal and transfer		524,861		(215,871)		308,990		18.6
Solid waste recycling		81,512		(8,722)		72,790		4.4
E&P waste treatment, recovery and disposal		61,350		(1,542)		59,808		3.6
Intermodal and other		50,321		(1,079)		49,242		3.0
Total	$	1,894,377	$	(232,759)	$	1,661,618		100.0%