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Segment Reporting
9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3. Group 1 is our recycling and waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada. Group 3 is our environmental solutions business operating primarily in geographic areas located across the United States and Canada. These groups are presented below as our reportable segments, which each provide integrated environmental services, including but not limited to collection, transfer, recycling, and disposal.
Adjusted EBITDA is the single financial measure our chief operating decision maker (CODM) uses to evaluate operating segment profitability and determine resource allocations.
Summarized financial information concerning our reportable segments for the three months ended September 30, 2024 and 2023 follows:
Group 1Group 2
Recycling & Waste Subtotal (1)
Group 3
(Environmental Solutions)
Corporate entities and otherTotal
Three Months Ended September 30, 2024
Gross Revenue$2,122.3 $2,005.4 $4,127.7 $467.4 $85.1 $4,680.2 
Intercompany Revenue(310.2)(266.9)(577.1)(11.6)(15.3)(604.0)
Revenue allocations31.9 29.0 60.9 8.9 (69.8)— 
Net Revenue$1,844.0 $1,767.5 $3,611.5 $464.7 $— $4,076.2 
Adjusted EBITDA$615.8 $569.2 $1,185.0 $118.3 $— $1,303.3 
Capital Expenditures$249.8 $155.2 $405.0 $32.6 $16.1 $453.7 
Total Assets$13,784.1 $11,059.3 $24,843.4 $4,438.9 $2,531.9 $31,814.2 
Three Months Ended September 30, 2023
Gross Revenue$2,000.3 $1,927.1 $3,927.4 $424.3 $62.5 $4,414.2 
Intercompany Revenue(294.6)(261.9)(556.5)(14.4)(17.4)(588.3)
Revenue allocations26.0 24.2 50.2 (5.1)(45.1)— 
Net Revenue$1,731.7 $1,689.4 $3,421.1 $404.8 $— $3,825.9 
Adjusted EBITDA$553.9 $500.4 $1,054.3 $91.4 $— $1,145.7 
Capital Expenditures$165.0 $141.4 $306.4 $24.9 $37.7 $369.0 
Total Assets$13,112.6 $10,866.4 $23,979.0 $3,982.4 $2,081.4 $30,042.8 
(1) The Recycling & Waste Subtotal represents the combined results of our Group 1 and Group 2 reportable segments.
Summarized financial information concerning our reportable segments for the nine months ended September 30, 2024 and 2023 follows:
Group 1Group 2
Recycling & Waste Subtotal (1)
Group 3
(Environmental Solutions)
Corporate entities and otherTotal
Nine Months Ended September 30, 2024
Gross Revenue$6,231.1 $5,923.1 $12,154.2 $1,377.0 $251.5 $13,782.7 
Intercompany Revenue(925.2)(785.3)(1,710.5)(36.1)(50.1)(1,796.7)
Revenue allocations94.4 87.3 181.7 19.7 (201.4)— 
Net Revenue$5,400.3 $5,225.1 $10,625.4 $1,360.6 $— $11,986.0 
Adjusted EBITDA$1,765.0 $1,643.5 $3,408.5 $317.2 $— $3,725.7 
Capital Expenditures$569.0 $410.8 $979.8 $92.4 $285.2 $1,357.4 
Total Assets$13,784.1 $11,059.3 $24,843.4 $4,438.9 $2,531.9 $31,814.2 
Nine Months Ended September 30, 2023
Gross Revenue$5,774.3 $5,653.0 $11,427.3 $1,278.9 $176.5 $12,882.7 
Intercompany Revenue(881.1)(764.4)(1,645.5)(45.8)(58.5)(1,749.8)
Revenue allocations71.6 68.1 139.7 (21.7)(118.0)— 
Net Revenue$4,964.8 $4,956.7 $9,921.5 $1,211.4 $— $11,132.9 
Adjusted EBITDA$1,570.6 $1,464.4 $3,035.0 $266.9 $— $3,301.9 
Capital Expenditures$421.6 $387.3 $808.9 $64.5 $209.8 $1,083.2 
Total Assets$13,112.6 $10,866.4 $23,979.0 $3,982.4 $2,081.4 $30,042.8 
(1) The Recycling & Waste Subtotal represents the combined results of our Group 1 and Group 2 reportable segments.
Corporate functions include legal, tax, treasury, information technology, risk management, human resources, closed landfills, and other administrative functions. National Accounts revenue included in Corporate entities and other represents the portion of revenue generated from nationwide and regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local operators. Revenue and overhead costs of Corporate entities and other are either specifically assigned or allocated on a rational and consistent basis among our reportable segments to calculate Adjusted EBITDA.
As presented in the tables below, Adjusted EBITDA reflects certain adjustments for US Ecology, Inc., acquisition, integration and deal costs, (income) losses from unconsolidated equity method investments, settlements and withdrawals on pension plans, losses on extinguishment of debt and restructuring expenses. This presentation is consistent with how our CODM reviews results of operations to make resource allocation decisions.
Intercompany revenue reflects transactions within and between segments that generally are made on a basis intended to reflect the market value of such services. Capital expenditures for Corporate entities and other primarily include vehicle inventory acquired but not yet assigned to operating locations and facilities.
A reconciliation of the Company's single measure of segment profitability (segment Adjusted EBITDA) to Income before income tax provision in the Consolidated Statements of Net Income is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Group 1 Adjusted EBITDA$615.8 $553.9 $1,765.0 $1,570.6 
Group 2 Adjusted EBITDA569.2 500.4 1,643.5 1,464.4 
Group 3 Adjusted EBITDA118.3 91.4 317.2 266.9 
Total Adjusted EBITDA1,303.3 1,145.7 3,725.7 3,301.9 
Other income, net(10.3)(1.3)(23.5)(3.2)
Interest income(4.3)(2.0)(7.4)(5.0)
Interest expense138.2 127.6 405.8 378.8 
Depreciation, amortization and depletion422.0 382.3 1,234.21,099.4 
Accretion26.7 24.6 80.1 73.2 
Loss (income) from unconsolidated equity method investment73.4 (2.8)116.0 (0.2)
Loss on extinguishment of debt and other related costs2.4 — 2.4 0.2 
Restructuring charges8.2 6.3 19.7 27.3 
US Ecology, Inc. acquisition integration and deal costs— 6.2 — 24.3 
Loss (gain) on business divestitures and impairments, net0.5 (1.5)(0.9)(1.5)
Income before income taxes$646.5 $606.3 $1,899.3 $1,708.6