Segment Reporting

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

8.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 Arkansas, Louisiana, New Mexico, North Dakota, Oklahoma, Texas, Wyoming and along the Gulf of Mexico.

The Company’s Chief Operating Decision Maker (“CODM”) 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, impairments and other operating charges and other income (expense).  Segment EBITDA 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 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 8. 

Summarized financial information concerning the Company’s reportable segments for the three months ended March 31, 2015 and 2014, is shown in the following tables: 

Three Months Ended March 31, 2015	Revenue		Intercompany Revenue(b)		Reported Revenue		Segment EBITDA(c)
Western	$	229,065	$	(23,439)	$	205,626	$	68,892
Central		150,546		(15,611)		134,935		47,350
Eastern		117,099		(19,075)		98,024		30,072
E&P		70,854		(3,339)		67,515		20,976
Corporate(a)		-		-		-		(457)
	$	567,564	$	(61,464)	$	506,100	$	166,833

Three Months Ended March 31, 2014	Revenue		Intercompany Revenue(b)		Reported Revenue		Segment EBITDA(c)
Western	$	217,603	$	(22,248)	$	195,355	$	62,492
Central		143,384		(14,317)		129,067		45,843
Eastern		109,367		(18,041)		91,326		27,137
E&P		70,306		(4,344)		65,962		31,479
Corporate(a)		-		-		-		(3,949)
	$	540,660	$	(58,950)	$	481,710	$	163,002

____________________

(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 the Company’s most recent Annual Report on Form 10-K.

The following tables show changes in goodwill during the three months ended March 31, 2015 and 2014, by reportable segment: 

	Western		Central		Eastern		E&P		Total
Balance as of December 31, 2014	$	372,915	$	460,381	$	392,423	$	468,070	$	1,693,789
Goodwill acquired		-		590		6,497		20,910		27,997
Goodwill adjustments		(27)		-		-		-		(27)
Balance as of March 31, 2015	$	372,888	$	460,971	$	398,920	$	488,980	$	1,721,759

	Western		Central		Eastern		E&P		Total
Balance as of December 31, 2013	$	372,915	$	459,054	$	380,570	$	462,615	$	1,675,154
Goodwill adjustments		-		(843)		(1)		-		(844)
Balance as of March 31, 2014	$	372,915	$	458,211	$	380,569	$	462,615	$	1,674,310

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 Condensed Consolidated Statements of Net Income is as follows: 

	Three months ended March 31,
	2015		2014
Western segment EBITDA	$	68,892	$	62,492
Central segment EBITDA		47,350		45,843
Eastern segment EBITDA		30,072		27,137
E&P segment EBITDA		20,976		31,479
Subtotal reportable segments		167,290		166,951
Unallocated corporate overhead		(457)		(3,949)
Depreciation		(57,307)		(55,817)
Amortization of intangibles		(6,999)		(6,737)
Impairments and other operating charges		(662)		(525)
Interest expense		(15,697)		(16,910)
Other income (expense), net		(220)		142
Income before income tax provision	$	85,948	$	83,155

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

	Three months ended March 31, 2015
	Revenue		Intercompany Revenue		Reported Revenue		% of Reported Revenue
Solid waste collection	$	327,005	$	(919)	$	326,086		57.6%
Solid waste disposal and transfer		142,430		(56,326)		86,104		25.1
Solid waste recycling		11,069		(221)		10,848		1.9
E&P waste treatment, recovery and disposal		72,556		(3,998)		68,558		12.8
Intermodal and other		14,504		-		14,504		2.6
Total	$	567,564	$	(61,464)	$	506,100		100.0%

	Three months ended March 31, 2014
	Revenue		Intercompany Revenue		Reported Revenue		% of Reported Revenue
Solid waste collection	$	306,003	$	(847)	$	305,156		56.6%
Solid waste disposal and transfer		135,563		(52,508)		83,055		25.1
Solid waste recycling		14,904		(619)		14,285		2.7
E&P waste treatment, recovery and disposal		73,318		(4,765)		68,553		13.6
Intermodal and other		10,872		(211)		10,661		2.0
Total	$	540,660	$	(58,950)	$	481,710		100.0%