REVENUES FROM CONTRACTS WITH CUSTOMERS

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

REVENUES FROM CONTRACTS WITH CUSTOMERS

NOTE 2 – REVENUES FROM CONTRACTS WITH CUSTOMERS

The Company provides RWCS, which provide collection and processing of regulated and specialized waste, including medical, pharmaceutical and hazardous waste, for disposal and compliance programs and communication solutions, and SID Services, which provide for the collection of personal and confidential information for secure destruction and recycling of shredded paper.

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 and/or fees based on contractual rates depending upon measures including the volume, weight, and type of waste, number and size of containers collected, weight and type of shredded paper, 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 the first quarter of 2021, we updated our service lines to include Communication Solutions (formally part of CRS) in RWCS. This reclassification was driven by the divestiture of the Company's global product recall business (Expert Solutions) in December of 2020 and the remaining Communication Solutions service line synergies with the Company's RWCS customers. For 2020 periods presented, amounts have been recast to reflect this change.

In millions
	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue by Service
Regulated Waste and Compliance Services	$	461.7	$	449.1	$	1,398.3	$	1,461.7
Secure Information Destruction Services	187.2		187.3		591.3		557.9
Total Revenues	$	648.9	$	636.4	$	1,989.6	$	2,019.6
North America
Regulated Waste and Compliance Services	$	365.4	$	353.7	$	1,094.4	$	1,176.2
Secure Information Destruction Services	158.5		163.4		505.8		486.8
Total North America Segment	$	523.9	$	517.1	$	1,600.2	$	1,663.0
International
Regulated Waste and Compliance Services	$	96.3	$	95.4	$	303.9	$	285.5
Secure Information Destruction Services	28.7		23.9		85.5		71.1
Total International Segment	$	125.0	$	119.3	$	389.4	$	356.6

Contract Liabilities

Contract liabilities at September 30, 2021 and December 31, 2020 were $8.7 million and $8.8 million, respectively. Contract liabilities as of September 30, 2021 are expected to be recognized in Revenues, as the amounts are earned, which will be over the next 12 months.

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 6.5 years.

During the three months ended September 30, 2021 and 2020, the Company amortized $3.2 million and $2.7 million, respectively, of deferred sales incentives to SG&A. During the nine months ended September 30, 2021 and 2020, the Company amortized $9.3 million and $7.8 million, respectively, of deferred sales incentives to SG&A.

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

In millions
	September 30, 2021		December 31, 2020
Other current assets	$	11.9	$	11.1
Other assets	32.7		31.1
Total contract acquisition costs	$	44.6	$	42.2

Allowance for Doubtful Accounts

The Company estimates its allowance for doubtful accounts based on past collection history and specific risks identified among uncollected amounts, as well as management’s expectation of future economic conditions. If current or expected future economic trends, events, or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and the allowance is adjusted accordingly. Past-due receivable balances are written off when the Company’s collection efforts have been exhausted. The changes in allowance for doubtful accounts were reported as follows:

In millions
	Total
Balance as of December 31, 2020	$	56.2
Bad debt expense, net of recoveries	2.8
Write-offs	(13.3)
Other changes(1)	(3.1)
Balance as of September 30, 2021	$	42.6

(1) Amount consists primarily of currency translation adjustments and divestitures.