v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
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.
We generated $182 million, $170 million and $90 million of revenue in Canada for the years ended December 31, 2024, 2023 and 2022, respectively. As of December 31, 2024 and 2023, we had $129 million and $137 million, respectively, of long-lived assets in Canada. The remainder of our revenue and assets were related to our United States operations.
Our chief operating decision maker (CODM) is Jon Vander Ark, President and Chief Executive Officer of Republic Services, Inc. Adjusted EBITDA is the single financial measure our CODM uses to evaluate segment profitability and returns, which informs resource allocation. For all segments, the CODM uses adjusted EBITDA to evaluate income generated from segment assets (return on invested capital). The CODM considers budget-to-actual variances and year-over-year growth on a monthly basis to assess the performance of each segment. Cost of operations and selling, general and administrative are significant segment expenses used in the evaluation.
Summarized financial information concerning our reportable segments for the years ended December 31, 2024, 2023 and 2022 follows:
Group 1Group 2
Recycling & Waste Subtotal(1)
Group 3
(Environmental Solutions)		Corporate entities and otherTotal
2024
Gross Revenue$8,332 $7,891 $16,223 $1,864 $331 $18,418 
Intercompany Revenue(1,235)(1,037)(2,272)(49)(65)(2,386)
Revenue Allocations123 115 238 28 (266)— 
Net Revenue$7,220 $6,969 $14,189 $1,843 $— $16,032 
Cost of Operations4,129 4,079 8,208 1,142 — 9,350 
SG&A738 671 1,409 265 — 1,674 
Other Segment Items— 29 29 — — 29 
Adjusted EBITDA$2,353 $2,190 $4,543 $436 $— $4,979 
Capital Expenditures$874 $574 $1,448 $136 $271 $1,855 
Total Assets$14,250 $11,046 $25,296 $4,459 $2,647 $32,402 
Group 1Group 2Recycling & Waste Subtotal(1)Group 3
(Environmental Solutions)		Corporate entities and otherTotal
2023
Gross Revenue$7,769 $7,566 $15,335 $1,701 $243 $17,279 
Intercompany Revenue(1,171)(1,011)(2,182)(56)(76)(2,314)
Revenue Allocations96 91 187 (20)(167)— 
Net Revenue$6,694 $6,646 $13,340 $1,625 $— $14,965 
Cost of Operations3,878 4,033 7,911 1,032 — 8,943 
SG&A681 649 1,330 279 — 1,609 
Other Segment Items— — — (34)— (34)
Adjusted EBITDA$2,135 $1,964 $4,099 $348 $— $4,447 
Capital Expenditures$707 $542 $1,249 $145 $237 $1,631 
Total Assets$13,665 $10,988 $24,653 $4,471 $2,286 $31,410 
Group 1Group 2Recycling & Waste Subtotal(1)Group 3
(Environmental Solutions)		Corporate entities and otherTotal
2022
Gross Revenue$7,107 $7,029 $14,136 $1,262 $247 $15,645 
Intercompany Revenue(1,090)(945)(2,035)(47)(52)(2,134)
Revenue Allocations103 99 202 (7)(195)— 
Net Revenue$6,120 $6,183 $12,303 $1,208 $— $13,511 
Cost of Operations3,541 3,846 7,387 818 — 8,205 
SG&A612 586 1,198 256 — 1,454 
Other Segment Items— — — (77)— (77)
Adjusted EBITDA$1,967 $1,751 $3,718 $211 $— $3,929 
Capital Expenditures$620 $542 $1,162 $133 $159 $1,454 
Total Assets$12,418 $10,528 $22,946 $4,090 $2,017 $29,053 
(1) The Recycling & Waste Subtotal represents the combined results of our Group 1 and Group 2 reportable segments.
Corporate functions include marketing, operations support, business development, legal, tax, treasury, information technology, risk management, human resources 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 above, 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, restructuring expenses, and gain on certain divestitures and impairments, net. 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, 2024, 2023 and 2022 (in millions of dollars):
202420232022
Group 1 Adjusted EBITDA$2,353 $2,135 $1,967 
Group 2 Adjusted EBITDA2,190 1,964 1,751 
Group 3 Adjusted EBITDA436 348 211 
Total Adjusted EBITDA4,979 4,447 3,929 
Other income (expense), net(23)(7)2 
Interest income(9)(6)(3)
Interest expense539 508 395 
Depreciation, depletion and amortization1,677 1,501 1,352 
Accretion107 98 89 
Loss from unconsolidated equity method investments255 94 166 
Adjustment to withdrawal liability for multiemployer pension funds
— 5 (2)
Restructuring charges29 33 27 
Gain on certain divestitures and impairments, net(30)(4)(6)
US Ecology, Inc. acquisition integration and deal costs— 34 77 
Loss on extinguishment of debt and other related costs2 — — 
Income before income taxes$2,432 $2,191 $1,832