| OPERATING SEGMENTS |
17. OPERATING SEGMENTS GFL’s main lines of business are the transporting, managing, and recycling of solid and liquid waste and soil remediation services. GFL is divided into operating segments corresponding to the following lines of business: Solid Waste, which includes hauling, landfill, transfer and MRFs and Environmental Services, which includes liquid waste and soil remediation. Inter-segment transfers are made at market prices. The operating segments are presented in accordance with the same criteria used for the internal report prepared for the chief operating decision-maker (“CODM”) who is responsible for allocating the resources and assessing the performance of the operating segments. The CODM assesses the performance of the segments on several factors, including gross revenue, intercompany revenue, revenue and adjusted EBITDA. GFL’s CODM is the Chief Executive Officer. The Solid Waste segment follows a national internal reporting structure, and each country is considered a separate operating segment by the CODM. The following tables present GFL’s revenue and Adjusted EBITDA by operating segment for the periods indicated. Gross revenue is calculated based on revenue before intercompany revenue eliminations. | | | | | | | | | | | | | | | Year ended December 31, 2023 | | | Gross | | Intercompany | | | | Adjusted | | | Revenue | | Revenue | | Revenue | | EBITDA | Solid Waste | | | | | | | | | | | | | Canada | | $ | 2,085.0 | | $ | (265.8) | | $ | 1,819.2 | | $ | 499.3 | USA | | | 4,756.4 | | | (523.0) | | | 4,233.4 | | | 1,365.9 | Solid Waste | | | 6,841.4 | | | (788.8) | | | 6,052.6 | | | 1,865.2 | Environmental Services | | | 1,620.6 | | | (157.7) | | | 1,462.9 | | | 382.8 | Corporate | | | — | | | — | | | — | | | (244.3) | | | $ | 8,462.0 | | $ | (946.5) | | $ | 7,515.5 | | $ | 2,003.7 |
| | | | | | | | | | | | | | | Year ended December 31, 2022 | | | Gross | | Intercompany | | | | | Adjusted | | | Revenue | | Revenue | | Revenue | | EBITDA | Solid Waste | | | | | | | | | | | | | Canada | | $ | 1,926.5 | | $ | (248.3) | | $ | 1,678.2 | | $ | 451.5 | USA | | | 4,294.7 | | | (460.5) | | | 3,834.2 | | | 1,149.5 | Solid Waste | | | 6,221.2 | | | (708.8) | | | 5,512.4 | | | 1,601.0 | Environmental Services | | | 1,343.2 | | | (94.3) | | | 1,248.9 | | | 307.4 | Corporate | | | — | | | — | | | — | | | (187.6) | | | $ | 7,564.4 | | $ | (803.1) | | $ | 6,761.3 | | $ | 1,720.8 |
The following table presents GFL’s reconciliation of net income (loss) from continuing operations to Adjusted EBITDA for the periods indicated: | | | | | | | | | Year ended December 31, | | | 2023 | | 2022 | Net income (loss) from continuing operations | | $ | 32.2 | | $ | (183.2) | Add: | | | | | | | Depreciation of property and equipment | | | 1,004.4 | | | 1,003.9 | Amortization of intangible assets | | | 485.3 | | | 515.6 | Interest and other finance costs | | | 627.2 | | | 489.3 | Income tax expense (recovery) | | | 159.9 | | | (176.1) | (Gain) loss on foreign exchange | | | (72.9) | | | 217.7 | (Gain) loss on sale of property and equipment | | | (13.1) | | | 4.7 | Mark-to-market loss (gain) on Purchase Contracts | | | 104.3 | | | (266.8) | Share of net loss (income) of investments accounted for using the equity method | | | 61.6 | | | (20.7) | Share-based payments | | | 124.8 | | | 53.3 | Gain on divestiture | | | (580.5) | | | (4.9) | Transaction costs | | | 78.4 | | | 55.0 | Acquisition, rebranding and other integration costs | | | 15.3 | | | 25.8 | Other | | | (23.2) | | | 7.2 | Adjusted EBITDA | | $ | 2,003.7 | | $ | 1,720.8 |
Geographical information Revenue from external customers and non-current assets can be analyzed according to the following geographic areas: | | | | | | | | | | | | | | | Revenue | | Non-current assets | | | Year ended | | Year ended | | | | | | | | | December 31, 2023 | | December 31, 2022 | | December 31, 2023 | | December 31, 2022 | Canada | | $ | 2,946.6 | | $ | 2,676.9 | | $ | 6,577.0 | | $ | 6,236.8 | USA | | | 4,568.9 | | | 4,084.4 | | | 11,817.2 | | | 12,147.7 | | | $ | 7,515.5 | | $ | 6,761.3 | | $ | 18,394.2 | | $ | 18,384.5 |
Goodwill and indefinite life intangible assets by operating segment The carrying amount of goodwill and indefinite life intangible assets allocated to the operating segments is as follows: | | | | | | | | | December 31, 2023 | | December 31, 2022 | Solid Waste | | | | | | | Canada | | $ | 2,091.7 | | $ | 2,079.6 | USA | | | 5,601.7 | | | 6,046.2 | Environmental Services | | | 1,058.1 | | | 896.3 | | | $ | 8,751.5 | | $ | 9,022.1 |
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