Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

SEGMENT REPORTING

8. 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. For the six month periods ended June 30, 2012 and 2011, the Company’s Western Region was comprised of operating locations in Alaska, California, Idaho, Montana, Nevada, Oregon, Washington and western Wyoming; the Company’s Central Region was 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 was 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 8.

Summarized financial information concerning the Company’s reportable segments for the three and six months ended June 30, 2012 and 2011, is shown in the following tables:

Three Months         Ended June 30, 2012	Gross Revenues		Intercompany Revenues(b)			Net Revenues		Operating Income Before Depreciation, Amortization and Gain (Loss) on Disposal of Assets(c)
Western	$	227,092	$	(25,548	)	$	201,544	$	58,890
Central		130,676		(15,125	)		115,551		42,124
Eastern		112,972		(19,336	)		93,636		27,231
Corporate (a)		—		—			—		(688	)
	$	470,740	$	(60,009	)	$	410,731	$	127,557

Three Months         Ended June 30, 2011	Gross Revenues		Intercompany Revenues(b)			Net Revenues		Operating Income Before Depreciation, Amortization and Gain (Loss) on Disposal of Assets(c)
Western	$	213,162	$	(25,611	)	$	187,551	$	57,835
Central		124,004		(13,489	)		110,515		39,662
Eastern		110,054		(17,936	)		92,118		26,713
Corporate (a)		—		—			—		2,933
	$	447,220	$	(57,036	)	$	390,184	$	127,143

Six Months         Ended June 30, 2012	Gross Revenues		Intercompany Revenues(b)			Net Revenues		Operating Income Before Depreciation, Amortization and Gain (Loss) on Disposal of Assets(c)
Western	$	431,773	$	(49,570	)	$	382,203	$	112,692
Central		250,493		(28,208	)		222,285		79,505
Eastern		220,130		(37,457	)		182,673		51,766
Corporate (a)		—		—			—		(7,831	)
	$	902,396	$	(115,235	)	$	787,161	$	236,132

Six Months     Ended June 30, 2011	Gross Revenues		Intercompany Revenues(b)			Net Revenues		Operating Income Before Depreciation, Amortization and Gain (Loss) on Disposal of Assets(c)
Western	$	410,628	$	(48,511	)	$	362,117	$	112,288
Central		235,963		(25,051	)		210,912		75,086
Eastern		179,769		(31,146	)		148,623		43,677
Corporate (a)		—		—			—		1,656
	$	826,360	$	(104,708	)	$	721,652	$	232,707

(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 June 30, 2012 and December 31, 2011, were as follows:

	June 30, 2012		December 31, 2011
Western	$	1,503,572	$	1,370,098
Central		1,051,871		1,040,962
Eastern		834,764		841,251
Corporate (a)		189,549		75,694
Total Assets	$	3,579,756	$	3,328,005

(a) The increase in total assets in the Western Region is due primarily to the assets acquired in the Alaska Waste acquisition. The increase in total assets at Corporate is due primarily to an increase in cash and equivalents.

The following tables show changes in goodwill during the six months ended June 30, 2012 and 2011, by reportable segment:

	Western		Central			Eastern		Total
Balance as of December 31, 2011	$	313,038	$	424,223		$	379,627	$	1,116,888
Goodwill acquired		60,538		5,153			18		65,709
Goodwill divested		—		(496	)		—		(496	)
Balance as of June 30, 2012	$	373,576	$	428,880		$	379,645	$	1,182,101

	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		—		1,366		175,605			176,971
Goodwill divested		—		—		—			—
Balance as of June 30, 2011	$	313,038	$	418,946	$	372,839		$	1,104,823

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 Net Income is as follows:

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
Operating income before depreciation, amortization and gain (loss) on disposal of assets	$	127,557		$	127,143		$	236,132		$	232,707
Depreciation		(39,846	)		(36,939	)		(77,018	)		(69,975	)
Amortization of intangibles		(6,217	)		(5,673	)		(11,849	)		(9,650	)
Gain (loss) on disposal of assets		243			267			(472	)		292
Interest expense		(11,829	)		(11,087	)		(24,114	)		(19,920	)
Interest income		165			143			297			276
Other income (expense), net		(145	)		(245	)		541			149
Income before income tax provision	$	69,928		$	73,609		$	123,517		$	133,879

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

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
Collection	$	299,666		$	275,170		$	576,754		$	514,607
Disposal and transfer		135,922			133,722			257,917			243,282
Intermodal, recycling and other		35,152			38,328			67,725			68,471
		470,740			447,220			902,396			826,360
Less: intercompany elimination		(60,009	)		(57,036	)		(115,235	)		(104,708	)
Total revenues	$	410,731		$	390,184		$	787,161		$	721,652