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REVENUES FROM CONTRACTS WITH CUSTOMERS
 12 Months Ended
Dec. 31, 2019
Revenue From Contract With Customer [Abstract]  
REVENUES FROM CONTRACTS WITH CUSTOMERS

NOTE 2 – REVENUES FROM CONTRACTS WITH CUSTOMERS

The Company provides Regulated Waste and Compliance Services, which provide collection and processing of regulated and specialized waste, including medical, pharmaceutical and hazardous waste, for disposal and compliance programs, Secure Information Destruction Services, which provide for the collection of personal and confidential information for secure destruction and recycling of shredded paper, and Communication and Related Services which includes Expert Solutions, and communication services such as appointment reminders, secure messaging, event registration and other communications for hospitals and IDN’s.  

The Company’s customers typically enter into a contract for the provision of services on a regular and scheduled basis, e.g. weekly, monthly or on an as needed basis over the contract term.  Under the contract terms, the Company receives fees based on a monthly, quarterly or annual rate or fees based on contractual rates depending upon measures including the volume, weight and type of waste, number and size of bins collected, weight and type of shredded paper, type of recall service and number of call minutes.

Amounts are invoiced based on the terms of the underlying contract either on a regular basis, e.g. monthly or quarterly, or as services are performed and are generally due within a short period of time after invoicing based upon normal terms and conditions for our business type and the geography of the services performed.

Disaggregation of Revenues

 

In millions

 

 

Year Ended December 31, 2019

 

Reportable Segment

North America RWCS

 

 

International RWCS

 

 

All Other

 

 

 

 

 

Revenues by Service:

United States

 

Canada

 

 

EMEA

 

Others

 

 

U.S.

 

 

Total

 

Medical Waste and Compliance Services

$

1,127.9

 

$

41.8

 

 

$

300.7

 

$

101.1

 

 

$

-

 

 

$

1,571.5

 

Hazardous Waste Services

 

321.3

 

 

-

 

 

 

-

 

 

-

 

 

 

-

 

 

 

321.3

 

Total RWCS

 

1,449.2

 

 

41.8

 

 

 

300.7

 

 

101.1

 

 

 

-

 

 

 

1,892.8

 

Secure Information Destruction Services

 

705.1

 

 

64.4

 

 

 

132.4

 

 

-

 

 

 

-

 

 

 

901.9

 

Manufacturing and Industrial Services

 

238.3

 

 

23.3

 

 

 

3.7

 

 

29.7

 

 

 

-

 

 

 

295.0

 

Communication Services

 

-

 

 

12.1

 

 

 

4.4

 

 

-

 

 

 

117.3

 

 

 

133.8

 

Expert Solutions

 

-

 

 

10.0

 

 

 

7.3

 

 

-

 

 

 

68.1

 

 

 

85.4

 

Total CRS

 

-

 

 

22.1

 

 

 

11.7

 

 

-

 

 

 

185.4

 

 

 

219.2

 

Total Revenues

$

2,392.6

 

$

151.6

 

 

$

448.5

 

$

130.8

 

 

$

185.4

 

 

$

3,308.9

 

Reportable Segment Total

 

 

 

$

2,544.2

 

 

 

 

 

$

579.3

 

 

$

185.4

 

 

$

3,308.9

 

 

In millions

 

 

Year Ended December 31, 2018

 

Reportable Segment

North America RWCS

 

 

International RWCS

 

 

All Other

 

 

 

 

 

 

 

Revenues by Service:

United States

 

Canada

 

 

EMEA

 

Others

 

 

U.S.

 

 

 

 

Total

 

Medical Waste and Compliance Services

$

1,142.4

 

$

39.6

 

 

$

305.1

 

$

131.4

 

 

$

-

 

 

 

 

$

1,618.5

 

Hazardous Waste Services

 

314.1

 

 

-

 

 

 

-

 

 

-

 

 

 

-

 

 

 

 

 

314.1

 

Total RWCS

 

1,456.5

 

 

39.6

 

 

 

305.1

 

 

131.4

 

 

 

-

 

 

 

 

 

1,932.6

 

Secure Information Destruction Services

 

712.6

 

 

65.7

 

 

 

132.7

 

 

-

 

 

 

-

 

 

 

 

 

911.0

 

Manufacturing and Industrial Services

 

247.8

 

 

22.6

 

 

 

16.9

 

 

41.9

 

 

 

-

 

 

 

 

 

329.2

 

Communication Services

 

-

 

 

17.3

 

 

 

18.4

 

 

-

 

 

 

148.4

 

 

 

 

 

184.1

 

Expert Solutions

 

-

 

 

12.0

 

 

 

8.7

 

 

-

 

 

 

108.3

 

 

 

 

 

129.0

 

Total CRS

 

-

 

 

29.3

 

 

 

27.1

 

 

-

 

 

 

256.7

 

 

 

 

 

313.1

 

Total Revenues

$

2,416.9

 

$

157.2

 

 

$

481.8

 

$

173.3

 

 

$

256.7

 

 

 

 

$

3,485.9

 

Reportable Segment Total

 

 

 

$

2,574.1

 

 

 

 

 

$

655.1

 

 

$

256.7

 

 

 

 

$

3,485.9

 

Contract Liabilities

The contract liability at December 31, 2019 and 2018 was $12.2 million and $15.0 million, respectively.  Substantially all of the contract liability as of December 31, 2019 is expected to be recognized as revenue during the year ended December 31, 2020 and substantially all of the balance as of December 31, 2018 was recognized as revenue during the year ended December 31, 2019.

Contract Acquisition Costs

The Company’s incremental direct costs of obtaining a contract, which consist primarily of sales incentives, are deferred and amortized to SG&A over a weighted average estimated period of benefit of 6.3 years.

During the year ended December 31, 2019 and 2018, the Company amortized $9.1 million and $6.9 million, respectively, of deferred sales incentives to SG&A.

Total contract acquisition costs, net of accumulated amortization, were classified as follows:

 

In millions

 

 

2019

 

 

2018

 

Other current assets

$

9.5

 

 

$

8.5

 

Other assets

 

28.9

 

 

 

23.3

 

Total contract acquisition costs

$

38.4

 

 

$

31.8