v3.24.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING
Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3. Group 1 is our recycling and waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada. Group 3 is our environmental solutions business operating in geographic areas located across the United States and Canada. These groups are presented below as our reportable segments, which each provide integrated environmental services, including but not limited to collection, transfer, recycling and disposal. Prior to the third quarter of 2022, our environmental services operating segment, now referred to as our Group 3 reportable segment, was aggregated with Corporate entities and other.
We generated $169.9 million and $90.2 million of revenue in Canada for the years ended December 31, 2023 and 2022, respectively. There was no revenue generated in Canada during 2021. As of December 31, 2023 and 2022, we had $136.8 million and $47.7 million, respectively, of long-lived assets in Canada. The remainder of our revenue and assets were related to our United States operations.
Adjusted EBITDA is the single financial measure our chief operating decision maker (CODM) uses to evaluate operating segment profitability and determine resource allocations. Summarized financial information concerning our reportable segments for the years ended December 31, 2023, 2022 and 2021 follows:
Group 1Group 2
Recycling & Waste Subtotal(1)
Group 3
(Environmental Solutions)		Corporate entities and otherTotal
2023
Gross Revenue$7,769.2 $7,563.2 $15,332.4 $1,703.6 $242.7 $17,278.7 
Intercompany Revenue(1,170.8)(1,008.4)(2,179.2)(58.8)(76.2)(2,314.2)
Revenue Allocations95.8 90.6 186.4 (19.9)(166.5)— 
Net Revenue$6,694.2 $6,645.4 $13,339.6 $1,624.9 $— $14,964.5 
Adjusted EBITDA$2,134.7 $1,964.0 $4,098.7 $348.4 $— $4,447.1 
Capital Expenditures$707.4 $540.1 $1,247.5 $146.2 $237.4 $1,631.1 
Total Assets$13,665.1 $10,959.5 $24,624.6 $4,481.3 $2,304.2 $31,410.1 
2022
Gross Revenue$7,106.6 $7,028.6 $14,135.2 $1,262.5 $247.5 $15,645.2 
Intercompany Revenue(1,089.6)(945.0)(2,034.6)(46.6)(52.7)(2,133.9)
Revenue Allocations103.5 99.0 202.5 (7.7)(194.8)— 
Net Revenue$6,120.5 $6,182.6 $12,303.1 $1,208.2 $— $13,511.3 
Adjusted EBITDA$1,967.4 $1,750.8 $3,718.2 $211.1 $— $3,929.3 
Capital Expenditures$620.1 $533.5 $1,153.6 $141.7 $158.7 $1,454.0 
Total Assets$12,418.1 $10,509.8 $22,927.9 $4,086.3 $2,038.7 $29,052.9 
2021
Gross Revenue$6,511.1 $6,338.0 $12,849.1 $242.4 $229.6 $13,321.1 
Intercompany Revenue(1,056.8)(919.3)(1,976.1)(19.5)(30.5)(2,026.1)
Revenue Allocations102.6 96.5 199.1 — (199.1)— 
Net Revenue$5,556.9 $5,515.2 $11,072.1 $222.9 $— $11,295.0 
Adjusted EBITDA$1,812.8 $1,526.1 $3,338.9 $44.6 $— $3,383.5 
Capital Expenditures$601.9 $541.8 $1,143.7 $50.8 $121.8 $1,316.3 
Total Assets$12,199.2 $9,926.9 $22,126.1 $1,211.6 $1,617.3 $24,955.0 
(1) The Recycling & Waste Subtotal represents the combined results of our Group 1 and Group 2 reportable segments.
Corporate functions include legal, tax, treasury, information technology, risk management, human resources, closed landfills, and other administrative functions. National Accounts revenue included in Corporate entities and other represents the portion of revenue generated from nationwide and regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local operators. Revenue and overhead costs of Corporate entities and other are either specifically assigned or allocated on a rational and consistent basis among our reportable segments to calculate Adjusted EBITDA.
As presented in the tables below, Adjusted EBITDA reflects certain adjustments for US Ecology, Inc., acquisition, integration and deal costs, (income) losses from unconsolidated equity method investments, losses on extinguishment of debt, adjustments to withdrawal liabilities for a multiemployer pension fund and restructuring expenses. This presentation is consistent with how our CODM reviews results of operations to make resource allocation decisions.
Intercompany revenue reflects transactions within and between segments that generally are made on a basis intended to reflect the market value of such services. Capital expenditures for Corporate entities and other primarily include vehicle inventory acquired but not yet assigned to operating locations and facilities.
A reconciliation of the Company's single measure of segment profitability (segment Adjusted EBITDA) to Income before income tax provision in the Consolidated Statements of Net Income is as follows for the years ended December 31, 2023, 2022 and 2021 (in millions of dollars and as a percentage of revenue):
202320222021
Group 1 Adjusted EBITDA$2,134.7 $1,967.4 $1,812.8 
Group 2 Adjusted EBITDA1,964.0 1,750.8 1,526.1 
Group 3 Adjusted EBITDA348.4 211.1 44.6 
Total Adjusted EBITDA4,447.1 3,929.3 3,383.5 
Other expense (income), net(7.5)2.3 0.5 
Interest income(6.5)(3.3)(2.5)
Interest expense508.2 395.6 314.6 
Depreciation, amortization and depletion1,501.4 1,351.6 1,185.5 
Accretion97.9 89.6 82.7 
Loss from unconsolidated equity method investments94.3 165.6 188.5 
Adjustment to withdrawal liability for multiemployer pension funds
4.5 (1.6)— 
Restructuring charges33.2 27.0 16.6 
(Gain) loss on business divestitures and impairments, net(3.6)(6.3)0.5 
US Ecology, Inc. acquisition integration and deal costs33.5 77.3 — 
Accelerated vesting of compensation expense for CEO transition— — 22.0 
Loss on extinguishment of debt and other related costs0.2 — — 
Income before income taxes$2,191.5 $1,831.5 $1,575.1