SEGMENT REPORTING

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 15 – SEGMENT REPORTING

In 2016, we made certain changes to our organizational structure to integrate the domestic and international operations of our 2015 Shred-it acquisition. During Q2 2016, we also changed the composition of our operating segments to further align our compliance and communication services. Due to this change, part of our Domestic Regulated Waste and Compliance Services operating segment was combined with the legacy Domestic Regulated Recall and Returns Management Services operating segment to form a new operating segment, Domestic Communication and Related Services (“Domestic CRS”).

In Q4 2016, we made an additional change to our organizational structure and management reporting. As a result of these changes, our Domestic Regulated Waste and Compliance Services (“Domestic RCS”) segment will now also be responsible for the operations in Canada. The operations in Canada had previously been reported as part of the International RCS operating segment. As a result of these changes our Domestic RCS operating segment will now become (“Domestic and Canada RCS”).

Domestic CRS does not meet the quantitative criteria to be a separate reportable segment and therefore is included in All other. Beginning in Q4 2016, costs related to our corporate headquarter functions are also included in All other.

Our three operating segments are:

• Domestic and Canada RCS,

• Domestic CRS, and

• International RCS.

Our Domestic and Canada, and International Regulated Waste and Compliance Services segments include medical waste disposal, pharmaceutical waste disposal, hazardous waste management, sustainability solutions for expired or unused inventory, secure information destruction of documents and e-media, training and consulting through our Steri-Safe® and Clinical Services programs, and other regulatory compliance services.

Our Domestic Communication and Related Services segment consists of inbound/outbound communication, automated patient reminders, online scheduling, notifications, product retrievals, product returns, and quality audits.

Our two reportable segments are:

• Domestic and Canada RCS,

• International RCS.

In connection with changes made to our management reporting to align with the new operating segments, we have also changed our measure of segment profit to earnings before interest, tax and amortization (“EBITA”), adjusted for various items. As a result of these changes in segment reporting, all historical segment information has been revised to conform to the new presentation.

The following tables show financial information for the Company's reportable segments:

In thousands
	Years Ended December 31,
	2016			2015			2014
Revenues
Domestic and Canada RCS	$	2,508,865		$	1,999,196		$	1,667,353
International RCS		751,677			716,771			663,889
All other		301,800			269,941			224,359
Total	$	3,562,342		$	2,985,908		$	2,555,601
Gross Profit
Domestic and Canada RCS	$	1,124,815		$	912,220		$	772,518
International RCS		228,484			230,323			216,377
All other		148,655			123,642			105,516
Total	$	1,501,954		$	1,266,185		$	1,094,411
Amortization
Domestic and Canada RCS	$	95,640		$	22,714		$	12,728
International RCS		25,730			14,926			13,298
All other		7,930			7,858			6,666
Total	$	129,300		$	45,498		$	32,692
EBITA
Domestic and Canada RCS	$	688,161		$	631,395		$	594,204
International RCS		58,027			89,064			98,494
All other		(18,564	)		(12,982	)		(44,683	)
Total	$	727,624		$	707,477		$	648,015
Total Assets
Domestic and Canada RCS	$	5,094,107		$	4,913,485		$	2,616,751
International RCS		1,357,047			1,636,382			1,291,671
All other		528,907			515,296			464,880
Total	$	6,980,061		$	7,065,163		$	4,373,302

The following table reconciles the Company's primary measure of segment profitability (EBITA) to income from operations:

In thousands
	Years Ended December 31,
	2016			2015			2014
Domestic and Canada RCS EBITA	$	688,161		$	631,395		$	594,204
International RCS EBITA		58,027			89,064			98,494
Subtotal reportable segments		746,188			720,459			692,698
All other EBITA		(18,564	)		(12,982	)		(44,683	)
Amortization expenses		(129,300	)		(45,498	)		(32,692	)
Acquisition expenses		(9,646	)		(39,138	)		(13,333	)
Integration expenses		(87,587	)		(51,689	)		(25,968	)
Litigation  and professional services expenses		(12,904	)		(59,651	)		(6,574	)
Change in fair value of contingent consideration		2,051			640			1,452
Restructuring and plant conversion expenses		(3,986	)		(22,748	)		(14,564	)
Contract exit costs		(24,005	)		—			—
Asset impairment charges		(28,472	)		(1,781	)		—
Income from operations	$	433,775		$	487,612		$	556,336

The following table shows consolidated revenue by service:

In thousands
	Years Ended December 31,
	2016		2015		2014
Regulated Waste and Compliance Services	$	2,061,416	$	2,064,866	$	1,955,761
Secure Information Destruction Services		747,510		178,085		—
Communication and Related Services		370,500		334,142		268,565
Manufacturing and Industrial Services		382,916		408,815		331,275
Revenues	$	3,562,342	$	2,985,908	$	2,555,601

Geographic Data

The following table shows consolidated revenue and property, plant and equipment split geographically:

In thousands
	Years Ended December 31,
	2016		2015		2014
Revenues
United States	$	2,657,452	$	2,165,030	$	1,788,390
International:
Europe		485,975		441,231		407,082
Other international countries		418,915		379,647		360,129
Total international		904,890		820,878		767,211
Total	$	3,562,342	$	2,985,908	$	2,555,601
Long-Lived Assets
United States	$	499,070	$	434,202	$	284,788
International:
Europe		89,007		95,771		70,621
Other international countries		135,817		135,629		104,999
Total international		224,824		231,400		175,620
Total	$	723,894	$	665,602	$	460,408