Segment Reporting

6 Months Ended

Jun. 30, 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 (gains) 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 and six months ended June 30, 2015 and 2014, is shown in the following tables: 

Three Months Ended June 30, 2015	Revenue		Intercompany Revenue(b)		Reported Revenue		Segment EBITDA(c)
Western	$	248,183	$	(25,795)	$	222,388	$	73,015
Central		168,315		(18,503)		149,812		51,722
Eastern		129,258		(22,043)		107,215		32,832
E&P		55,015		(3,118)		51,897		16,203
Corporate(a)		-		-		-		2,839
	$	600,771	$	(69,459)	$	531,312	$	176,611

Three Months Ended June 30, 2014	Revenue		Intercompany Revenue(b)		Reported Revenue		Segment EBITDA(c)
Western	$	230,904	$	(24,635)	$	206,269	$	63,262
Central		159,918		(18,002)		141,916		48,819
Eastern		120,550		(20,492)		100,058		30,768
E&P		79,756		(3,306)		76,450		40,716
Corporate(a)		-		-		-		(2,348)
	$	591,128	$	(66,435)	$	524,693	$	181,217

Six Months Ended June 30, 2015	Revenue		Intercompany Revenue(b)		Reported Revenue		Segment EBITDA(c)
Western	$	477,248	$	(49,234)	$	428,014	$	141,907
Central		318,861		(34,114)		284,747		99,072
Eastern		246,357		(41,118)		205,239		62,904
E&P		125,869		(6,457)		119,412		37,179
Corporate(a)		-		-		-		2,381
	$	1,168,335	$	(130,923)	$	1,037,412	$	343,443

Six Months Ended June 30, 2014	Revenue		Intercompany Revenue(b)		Reported Revenue		Segment EBITDA(c)
Western	$	448,506	$	(46,882)	$	401,624	$	125,754
Central		303,302		(32,320)		270,982		94,662
Eastern		229,917		(38,533)		191,384		57,904
E&P		150,062		(7,650)		142,412		72,196
Corporate(a)		-		-		-		(6,297)
	$	1,131,787	$	(125,385)	$	1,006,402	$	344,219

____________________

(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 six months ended June 30, 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		75		615		6,517		21,328		28,535
Balance as of June 30, 2015	$	372,990	$	460,996	$	398,940	$	489,398	$	1,722,324

	Western		Central		Eastern		E&P		Total
Balance as of December 31, 2013	$	372,915	$	459,054	$	380,570	$	462,615	$	1,675,154
Goodwill acquired		-		1,559		-		-		1,559
Goodwill divested		-		(143)		-		-		(143)
Goodwill adjustments		-		(843)		(1)		-		(844)
Balance as of June 30, 2014	$	372,915	$	459,627	$	380,569	$	462,615	$	1,675,726

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 June 30,				Six months ended June 30,
	2015		2014		2015		2014
Western segment EBITDA	$	73,015	$	63,262	$	141,907	$	125,754
Central segment EBITDA		51,722		48,819		99,072		94,662
Eastern segment EBITDA		32,832		30,768		62,904		57,904
E&P segment EBITDA		16,203		40,716		37,179		72,196
Subtotal reportable segments		173,772		183,565		341,062		350,516
Unallocated corporate overhead		2,839		(2,348)		2,381		(6,297)
Depreciation		(59,639)		(57,105)		(116,945)		(112,922)
Amortization of intangibles		(7,264)		(6,720)		(14,263)		(13,456)
Impairments and other operating (charges) gains		316		1,074		(346)		549
Interest expense		(15,322)		(15,940)		(31,018)		(32,851)
Other income (expense), net		92		911		(128)		1,053
Income before income tax provision	$	94,794	$	103,437	$	180,743	$	186,592

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

	Three months ended June 30, 2015
	Revenue		Intercompany Revenue		Reported Revenue		% of Reported Revenue
Solid waste collection	$	342,583	$	(981)	$	341,602		64.3%
Solid waste disposal and transfer		171,932		(64,838)		107,094		20.1
Solid waste recycling		12,332		(278)		12,054		2.3
E&P waste treatment, recovery and disposal		55,851		(3,362)		52,489		9.9
Intermodal and other		18,073		-		18,073		3.4
Total	$	600,771	$	(69,459)	$	531,312		100.0%

	Three months ended June 30, 2014
	Revenue		Intercompany Revenue		Reported Revenue		% of Reported Revenue
Solid waste collection	$	322,763	$	(903)	$	321,860		61.3%
Solid waste disposal and transfer		158,913		(61,091)		97,822		18.7
Solid waste recycling		14,836		(485)		14,351		2.7
E&P waste treatment, recovery and disposal		82,646		(3,717)		78,929		15.1
Intermodal and other		11,970		(239)		11,731		2.2
Total	$	591,128	$	(66,435)	$	524,693		100.0%

	Six months ended June 30, 2015
	Revenue		Intercompany Revenue		Reported Revenue		% of Reported Revenue
Solid waste collection	$	669,588	$	(1,900)	$	667,688		64.4%
Solid waste disposal and transfer		314,362		(121,164)		193,198		18.6
Solid waste recycling		23,401		(499)		22,902		2.2
E&P waste treatment, recovery and disposal		128,408		(7,360)		121,048		11.7
Intermodal and other		32,576		-		32,576		3.1
Total	$	1,168,335	$	(130,923)	$	1,037,412		100.0%

	Six months ended June 30, 2014
	Revenue		Intercompany Revenue		Reported Revenue		% of Reported Revenue
Solid waste collection	$	628,766	$	(1,750)	$	627,016		62.3%
Solid waste disposal and transfer		294,476		(113,599)		180,877		18.0
Solid waste recycling		29,739		(1,104)		28,635		2.8
E&P waste treatment, recovery and disposal		155,964		(8,482)		147,482		14.7
Intermodal and other		22,842		(450)		22,392		2.2
Total	$	1,131,787	$	(125,385)	$	1,006,402		100.0%