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REVENUES FROM CONTRACTS WITH CUSTOMERS
9 Months Ended
Sep. 30, 2022
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 or monthly) or on an as needed basis (e.g. one-time service) 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
The following table presents revenues disaggregated by service and reportable segments:
In millions
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Revenue by Service
Regulated Waste and Compliance Services$447.8 $461.7 $1,348.9 $1,398.3 
Secure Information Destruction Services242.5 187.2 685.5 591.3 
Total Revenues$690.3 $648.9 $2,034.4 $1,989.6 
North America
Regulated Waste and Compliance Services$369.7 $365.4 $1,097.5 $1,094.4 
Secure Information Destruction Services215.1 158.5 599.7 505.8 
Total North America Segment$584.8 $523.9 $1,697.2 $1,600.2 
International
Regulated Waste and Compliance Services$78.1 $96.3 $251.4 $303.9 
Secure Information Destruction Services27.4 28.7 85.8 85.5 
Total International Segment$105.5 $125.0 $337.2 $389.4 
Contract Liabilities
Contract liabilities at September 30, 2022 and December 31, 2021, were $8.2 million and $9.0 million, respectively. Substantially all of the contract liabilities as of September 30, 2022, 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, 2022 and 2021, the Company amortized $3.8 million and $3.2 million, respectively, of deferred sales incentives to SG&A. During the nine months ended September 30, 2022 and 2021, the Company amortized $10.8 million and $9.3 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, 2022December 31, 2021
Other current assets$13.8 $12.4 
Other assets38.4 34.3 
Total contract acquisition costs$52.2 $46.7 
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 generally written off when the Company’s collection efforts have been exhausted.
The changes in allowance for doubtful accounts were reported as follows:
In millions
Nine Months Ended September 30,
20222021
Beginning Balance$43.3 $56.2 
Bad debt expense, net of recoveries25.4 2.8 
Write-offs(9.8)(13.3)
Other changes(0.3)(3.1)
Ending Balance$58.6 $42.6