Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-14267 | |
Entity Registrant Name | REPUBLIC SERVICES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 65-0716904 | |
Entity Address, Address Line One | 18500 North Allied Way | |
Entity Address, City or Town | Phoenix, | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85054 | |
City Area Code | 480 | |
Local Phone Number | 627-2700 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | RSG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 315,933,309 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001060391 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 119.4 | $ 29 |
Accounts receivable, less allowance for doubtful accounts and other of $50.6 and $38.5, respectively | 1,654.7 | 1,271.4 |
Prepaid expenses and other current assets | 366.5 | 410.4 |
Total current assets | 2,140.6 | 1,710.8 |
Restricted cash and marketable securities | 121.5 | 139 |
Property and equipment, net | 10,395.8 | 9,232.1 |
Goodwill | 14,166.3 | 12,826 |
Other intangible assets, net | 398.7 | 259.5 |
Other assets | 990 | 787.6 |
Total assets | 28,212.9 | 24,955 |
Current liabilities: | ||
Accounts payable | 1,044.6 | 910 |
Notes payable and current maturities of long-term debt | 313.8 | 8.2 |
Deferred revenue | 419.6 | 381.3 |
Accrued landfill and environmental costs, current portion | 121.3 | 124.5 |
Accrued interest | 74 | 62.1 |
Other accrued liabilities | 961.3 | 929.5 |
Total current liabilities | 2,934.6 | 2,415.6 |
Long-term debt, net of current maturities | 11,589.5 | 9,546.2 |
Accrued landfill and environmental costs, net of current portion | 2,072.8 | 1,837.7 |
Deferred income taxes and other long-term tax liabilities, net | 1,432.4 | 1,229.5 |
Insurance reserves, net of current portion | 302.4 | 303.9 |
Other long-term liabilities | 665.2 | 642.4 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.01 per share; 50 shares authorized; none issued | 0 | 0 |
Common stock, par value $0.01 per share; 750 shares authorized; 320.1 and 319.6 issued including shares held in treasury, respectively | 3.2 | 3.2 |
Additional paid-in capital | 2,818.9 | 2,789.5 |
Retained earnings | 6,907.1 | 6,475.6 |
Treasury stock, at cost; 4.1 and 2.4 shares, respectively | (500.4) | (274.8) |
Accumulated other comprehensive loss, net of tax | (13.4) | (14.6) |
Total Republic Services, Inc. stockholders’ equity | 9,215.4 | 8,978.9 |
Non-controlling interests in consolidated subsidiary | 0.6 | 0.8 |
Total stockholders’ equity | 9,216 | 8,979.7 |
Total liabilities and stockholders’ equity | $ 28,212.9 | $ 24,955 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Allowance for doubtful accounts | $ 50.6 | |
Stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 320,100,000 | 319,600,000 |
Treasury stock, shares (in shares) | 4,100,000 | 2,400,000 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 3,413,600 | $ 2,812,300 | $ 6,383,700 | $ 5,408,200 |
Expenses: | ||||
Cost of operations | 2,064,400 | 1,650,200 | 3,828,100 | 3,184,000 |
Depreciation, amortization and depletion | 337,600 | 303,000 | 647,900 | 585,200 |
Accretion | 22,400 | 20,700 | 44,100 | 41,100 |
Selling, general and administrative | 391,500 | 315,800 | 699,300 | 581,200 |
Withdrawal costs - multiemployer pension funds | 2,200 | 0 | 2,200 | 0 |
Loss (gain) on business divestitures and impairments, net | 0 | 900 | 0 | (200) |
Restructuring charges | 5,900 | 3,800 | 11,900 | 6,600 |
Operating income | 589,600 | 517,900 | 1,150,200 | 1,010,300 |
Interest expense | (94,000) | (78,400) | (177,500) | (156,700) |
Loss from unconsolidated equity method investments | (13,600) | (12,400) | (17,400) | (28,900) |
Interest income | 700 | 600 | 1,200 | 1,400 |
Other (expense) income, net | (4,600) | (300) | (6,200) | 1,400 |
Income before income taxes | 478,100 | 427,400 | 950,300 | 827,500 |
Provision for income taxes | 106,300 | 95,400 | 226,600 | 199,100 |
Net income | 371,800 | 332,000 | 723,700 | 628,400 |
Net loss (income) attributable to non-controlling interests in consolidated subsidiary | 100 | (900) | 200 | (1,400) |
Net income attributable to Republic Services, Inc. | $ 371,888 | $ 331,065 | $ 723,912 | $ 627,009 |
Basic earnings per share attributable to Republic Services, Inc. stockholders: | ||||
Basic earnings per share (in dollars per share) | $ 1.18 | $ 1.04 | $ 2.29 | $ 1.96 |
Weighted average common shares outstanding (in shares) | 316,473 | 319,526 | 316,538 | 319,487 |
Diluted earnings per share attributable to Republic Services, Inc. stockholders: | ||||
Diluted earnings per share (in dollars per share) | $ 1.17 | $ 1.03 | $ 2.28 | $ 1.96 |
Weighted average common and common equivalent shares outstanding (in shares) | 316,960 | 320,041 | 317,079 | 319,937 |
Cash dividends per common share (in dollars per share) | $ 0.460 | $ 0.425 | $ 0.920 | $ 0.850 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 371.8 | $ 332 | $ 723.7 | $ 628.4 |
Hedging activity: | ||||
Realized loss reclassified into earnings | 1.1 | 1.2 | 2.2 | 2.3 |
Unrealized loss | (1.1) | 0 | (1.1) | 0 |
Pension activity: | ||||
Change in funded status of pension plan obligations | 0 | (0.7) | 0 | (0.7) |
Foreign currency activity: | ||||
Gain on foreign currency translation | 0.1 | 0 | 0.1 | 0 |
Other comprehensive income, net of tax | 0.1 | 0.5 | 1.2 | 1.6 |
Comprehensive income | 371.9 | 332.5 | 724.9 | 630 |
Comprehensive loss (income) attributable to non-controlling interests | 0.1 | (0.9) | 0.2 | (1.4) |
Comprehensive income attributable to Republic Services, Inc. | $ 372 | $ 331.6 | $ 725.1 | $ 628.6 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss, Net of Tax | Non-controlling Interests In Consolidated Subsidiary |
Balance (in shares) at Dec. 31, 2020 | 318.8 | ||||||
Balance (in shares) at Dec. 31, 2020 | 0 | ||||||
Balance at beginning of period at Dec. 31, 2020 | $ 8,488.8 | $ 3.2 | $ 2,741.4 | $ 5,751.8 | $ (0.1) | $ (12.4) | $ 4.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 296.4 | 295.9 | 0.5 | ||||
Other comprehensive income | 1.1 | 1.1 | |||||
Cash dividends declared | (135.6) | (135.6) | |||||
Issuances of common stock (in shares) | 0.5 | 0.2 | |||||
Issuances of common stock | (12.3) | 2.4 | $ (14.7) | ||||
Stock-based compensation | 12.6 | 13.5 | (0.9) | ||||
Purchase of common stock for treasury (in shares) | (0.1) | ||||||
Purchase of common stock for treasury | (12.7) | $ (12.7) | |||||
Balance (in shares) at Mar. 31, 2021 | 319.3 | ||||||
Balance (in shares) at Mar. 31, 2021 | (0.3) | ||||||
Balance at end of period at Mar. 31, 2021 | 8,638.3 | $ 3.2 | 2,757.3 | 5,911.2 | $ (27.5) | (11.3) | 5.4 |
Balance (in shares) at Dec. 31, 2020 | 318.8 | ||||||
Balance (in shares) at Dec. 31, 2020 | 0 | ||||||
Balance at beginning of period at Dec. 31, 2020 | 8,488.8 | $ 3.2 | 2,741.4 | 5,751.8 | $ (0.1) | (12.4) | 4.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 628.4 | ||||||
Other comprehensive income | 1.6 | ||||||
Balance (in shares) at Jun. 30, 2021 | 319.4 | ||||||
Balance (in shares) at Jun. 30, 2021 | (0.6) | ||||||
Balance at end of period at Jun. 30, 2021 | 8,783.4 | $ 3.2 | 2,787.1 | 6,106 | $ (107.2) | (10.8) | 5.1 |
Balance (in shares) at Mar. 31, 2021 | 319.3 | ||||||
Balance (in shares) at Mar. 31, 2021 | (0.3) | ||||||
Balance at beginning of period at Mar. 31, 2021 | 8,638.3 | $ 3.2 | 2,757.3 | 5,911.2 | $ (27.5) | (11.3) | 5.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 332 | 331.1 | 0.9 | ||||
Other comprehensive income | 0.5 | 0.5 | |||||
Cash dividends declared | (135.4) | (135.4) | |||||
Issuances of common stock (in shares) | 0.1 | 0 | |||||
Issuances of common stock | 2.9 | 3.1 | $ (0.2) | ||||
Stock-based compensation | 25.8 | 26.7 | (0.9) | ||||
Purchase of common stock for treasury (in shares) | (0.3) | ||||||
Purchase of common stock for treasury | (79.5) | $ (79.5) | |||||
Distributions paid | (1.2) | (1.2) | |||||
Balance (in shares) at Jun. 30, 2021 | 319.4 | ||||||
Balance (in shares) at Jun. 30, 2021 | (0.6) | ||||||
Balance at end of period at Jun. 30, 2021 | 8,783.4 | $ 3.2 | 2,787.1 | 6,106 | $ (107.2) | (10.8) | 5.1 |
Balance (in shares) at Dec. 31, 2021 | 319.6 | ||||||
Balance (in shares) at Dec. 31, 2021 | (2.4) | ||||||
Balance at beginning of period at Dec. 31, 2021 | 8,979.7 | $ 3.2 | 2,789.5 | 6,475.6 | $ (274.8) | (14.6) | 0.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 351.9 | 352 | (0.1) | ||||
Other comprehensive income | 1.1 | 1.1 | |||||
Cash dividends declared | (145.3) | (145.3) | |||||
Issuances of common stock (in shares) | 0.3 | 0.1 | |||||
Issuances of common stock | (11.5) | 2.6 | $ (14.1) | ||||
Stock-based compensation | 12.3 | 13.2 | (0.9) | ||||
Purchase of common stock for treasury (in shares) | (1.6) | ||||||
Purchase of common stock for treasury | (203.5) | $ (203.5) | |||||
Balance (in shares) at Mar. 31, 2022 | 319.9 | ||||||
Balance (in shares) at Mar. 31, 2022 | (4.1) | ||||||
Balance at end of period at Mar. 31, 2022 | 8,984.7 | $ 3.2 | 2,805.3 | 6,681.4 | $ (492.4) | (13.5) | 0.7 |
Balance (in shares) at Dec. 31, 2021 | 319.6 | ||||||
Balance (in shares) at Dec. 31, 2021 | (2.4) | ||||||
Balance at beginning of period at Dec. 31, 2021 | 8,979.7 | $ 3.2 | 2,789.5 | 6,475.6 | $ (274.8) | (14.6) | 0.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 723.7 | ||||||
Other comprehensive income | 1.2 | ||||||
Cash dividends declared | (290.6) | ||||||
Balance (in shares) at Jun. 30, 2022 | 320.1 | ||||||
Balance (in shares) at Jun. 30, 2022 | (4.1) | ||||||
Balance at end of period at Jun. 30, 2022 | 9,216 | $ 3.2 | 2,818.9 | 6,907.1 | $ (500.4) | (13.4) | 0.6 |
Balance (in shares) at Mar. 31, 2022 | 319.9 | ||||||
Balance (in shares) at Mar. 31, 2022 | (4.1) | ||||||
Balance at beginning of period at Mar. 31, 2022 | 8,984.7 | $ 3.2 | 2,805.3 | 6,681.4 | $ (492.4) | (13.5) | 0.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 371.8 | 371.9 | (0.1) | ||||
Other comprehensive income | 0.1 | 0.1 | |||||
Cash dividends declared | (145.3) | (145.3) | |||||
Issuances of common stock (in shares) | 0.2 | ||||||
Issuances of common stock | (4) | 4 | $ (8) | ||||
Stock-based compensation | 8.7 | 9.6 | (0.9) | ||||
Purchase of common stock for treasury | 0 | ||||||
Balance (in shares) at Jun. 30, 2022 | 320.1 | ||||||
Balance (in shares) at Jun. 30, 2022 | (4.1) | ||||||
Balance at end of period at Jun. 30, 2022 | $ 9,216 | $ 3.2 | $ 2,818.9 | $ 6,907.1 | $ (500.4) | $ (13.4) | $ 0.6 |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash provided by operating activities: | ||
Net income | $ 723.7 | $ 628.4 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation, amortization, depletion and accretion | 692 | 626.3 |
Non-cash interest expense | 38.1 | 34.2 |
Stock-based compensation | 21.2 | 38.6 |
Deferred tax provision | 52.8 | 42.5 |
Provision for doubtful accounts, net of adjustments | 17.2 | 11.4 |
(Gain) loss on disposition of assets and asset impairments, net | (3.2) | 0.2 |
Environmental adjustments | 0 | 4.8 |
Loss from unconsolidated equity method investments | 17.4 | 28.9 |
Other non-cash items | 6.3 | (1.7) |
Change in assets and liabilities, net of effects from business acquisitions and divestitures: | ||
Accounts receivable | (150.4) | (68.1) |
Prepaid expenses and other assets | 72.6 | 88.8 |
Accounts payable | 167.1 | 54.4 |
Capping, closure and post-closure expenditures | (18) | (26.8) |
Remediation expenditures | (21.1) | (21.7) |
Other liabilities | (52.2) | 42.6 |
Cash provided by operating activities | 1,563.5 | 1,482.8 |
Cash (used in) provided by investing activities: | ||
Purchases of property and equipment | (647.3) | (608.6) |
Proceeds from sales of property and equipment | 20 | 8.2 |
Cash used in acquisitions and investments, net of cash and restricted cash acquired | (2,655) | (576.6) |
Cash received from business divestitures | 0 | 45.9 |
Purchases of restricted marketable securities | (9.1) | (16.6) |
Sales of restricted marketable securities | 8.5 | 14.9 |
Other | (1) | (0.3) |
Cash used in investing activities | (3,283.9) | (1,133.1) |
Cash provided by (used in) financing activities: | ||
Proceeds from credit facilities and notes payable, net of fees | 5,338.9 | 2,737.9 |
Payments of credit facilities and notes payable | (3,027.1) | (2,756.1) |
Issuances of common stock, net | (15.5) | (9.5) |
Purchases of common stock for treasury | (203.5) | (40.1) |
Cash dividends paid | (291.2) | (271.1) |
Distributions paid to non-controlling interests in consolidated subsidiary | 0 | (1.2) |
Contingent consideration payments | (2.9) | (11.8) |
Cash provided by (used in) financing activities | 1,798.7 | (351.9) |
Effect of foreign exchange rate changes on cash | (0.1) | 0 |
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 78.2 | (2.2) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year | 105.6 | 114.2 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 183.7 | $ 112 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Republic Services, Inc., a Delaware corporation, and its consolidated subsidiaries (also referred to collectively as Republic, the Company, we, us, or our), is one of the largest providers of environmental services in the United States, as measured by revenue. We manage and evaluate our operations through three operating segments, Group 1, Group 2, and Environmental Solutions. The unaudited consolidated financial statements include the accounts of Republic Services, Inc. and its wholly owned and majority owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). We account for investments in entities in which we do not have a controlling financial interest under the equity method of accounting or, for investments that do not meet the criteria to be accounted for under the equity method, we reflect these investments at their fair value when it is readily determinable. If fair value is not readily determinable, we use an alternative measurement approach. All material intercompany accounts and transactions have been eliminated in consolidation. We have prepared these unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments that, unless otherwise disclosed, are of a normal recurring nature and necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of the results you can expect for a full year. You should read these financial statements in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. For comparative purposes, certain prior year amounts have been reclassified to conform to the current year presentation. All dollar amounts in tabular presentations are in millions, except per share amounts and unless otherwise noted. Management’s Estimates and Assumptions In preparing our financial statements, we make numerous estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. We must make these estimates and assumptions because certain information we use is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. In preparing our financial statements, the more critical and subjective areas that deal with the greatest amount of uncertainty relate to our accounting for our long-lived assets, including recoverability, landfill development costs, and final capping, closure and post-closure costs; our valuation allowances for accounts receivable and deferred tax assets; our liabilities for potential litigation, claims and assessments; our liabilities for environmental remediation, multiemployer pension funds, employee benefit plans, deferred taxes, uncertain tax positions, and insurance reserves; and our estimates of the fair values of assets acquired and liabilities assumed in any acquisition. Each of these items is discussed in more detail in our description of our significant accounting policies in Note 2, Summary of Significant Accounting Policies , of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Our actual results may differ significantly from our estimates. New Accounting Pronouncements Accounting Standards Updates Issued but not yet Adopted Facilitation of the Effects of Reference Rate Reform on Financial Reporting In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. During the quarter ended June 30, 2022, we novated a certain hedging relationship related to one of our interest rate swap agreements by changing the reference rate from the London Interbank Offered Rate (LIBOR) to a secured overnight financing rate (SOFR). The amendment did not have a material impact on our consolidated financial statements. For further discussion of the amendment and relevant hedging relationship, refer to Note 7, Debt, in Part I, Item 1 of this Quarterly Report on Form 10-Q. We have not modified any other contracts as a result of reference rate reform. Business Combinations In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08). ASU 2021-08 improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the recognition of an acquired contract liability and the payment terms and their effect on subsequent revenue recognized by the acquirer. ASU 2021-08 is effective for all entities that enter into a business combination within the applicable scope. The amendments in this update are effective for fiscal years beginning after December 15, 2022. We are currently assessing the effect this guidance may have on our consolidated financial statements. |
Business Acquisitions, Investme
Business Acquisitions, Investments and Restructuring Charges | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES | BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES Acquisitions We acquired various environmental services, waste, and recycling businesses during the six months ended June 30, 2022 and 2021. The aggregate purchase price paid for these business acquisitions and the allocations of the aggregate purchase price follows: 2022 2021 Purchase price: Cash used in acquisitions, net of cash acquired of $64.6 and $3.0, respectively $ 2,516.6 $ 561.7 Holdbacks 10.1 5.5 Fair value, future minimum finance lease payments 15.6 40.2 Total $ 2,542.3 $ 607.4 Allocated as follows: Restricted cash $ — $ 7.2 Accounts receivable 250.5 16.7 Prepaid expenses 15.5 — Landfill development costs 495.7 65.9 Property and equipment 688.0 67.1 Operating right-of-use lease assets 55.4 0.4 Interest rate swap 29.1 — Assets held for sale — 43.1 Other assets 38.0 2.1 Inventory 11.2 0.3 Accounts payable (109.2) (10.6) Deferred revenue (25.6) (3.0) Environmental remediation liabilities (92.4) (14.4) Closure and post-closure liabilities (88.9) (32.2) Operating right-of-use lease liabilities (55.8) (0.4) Deferred income tax liabilities (151.0) — Other liabilities (49.5) (11.3) Fair value of tangible assets acquired and liabilities assumed 1,011.0 130.9 Excess purchase price to be allocated $ 1,531.3 $ 476.5 Excess purchase price allocated as follows: Other intangible assets $ 162.9 $ 37.8 Goodwill 1,368.4 438.7 Total allocated $ 1,531.3 $ 476.5 The purchase price allocations are preliminary and based on information existing at the acquisition dates. Accordingly, the purchase price allocations are subject to change. Excluding the US Ecology acquisition discussed below, substantially all of the goodwill and intangible assets recorded for these acquisitions are deductible for tax purposes. These acquisitions are not material to the Company's results of operations, individually or in the aggregate. As a result, no pro forma financial information is provided. On May 2, 2022, we acquired all outstanding equity of US Ecology, Inc. (US Ecology) in a transaction valued at $2.2 billion. US Ecology is a leading provider of environmental solutions offering treatment, recycling and disposal of hazardous, non-hazardous and specialty waste. We financed the transaction using the proceeds of a new $1.0 billion unsecured Term Loan Credit Agreement (Term Loan Facility) and borrowings under our existing $3.0 billion unsecured revolving credit facility. For further discussion of the borrowings used to fund the US Ecology acquisition, refer to Note 7, Debt, in Part I, Item 1 of this Quarterly Report on Form 10-Q. The preliminary purchase price allocation for the US Ecology acquisition is reflected in the table above and remains subject to revisions as additional information is obtained about the facts and circumstances that existed at the valuation date. The preliminary allocation of purchase price, including the value of certain tangible and intangible assets acquired as well as certain leases and environmental liabilities assumed, is based on the best estimates of management and is subject to revision based on the final valuations. We do not expect a step-up in the tax basis of the assets recognized in connection with the US Ecology acquisition, and do not expect the goodwill and intangible assets will be deductible for tax purposes. During the three and six months ended June 30, 2022, we incurred $51.9 million and $56.6 million, respectively, of acquisition integration and deal costs in connection with the acquisition of US Ecology, which included certain costs to close the acquisition and integrate the business, including stock compensation expense for unvested equity awards at closing as well as severance and change-in-control payments. Investments In July 2022, we made an investment of approximately $90 million in a joint venture with a landfill gas to energy developer to construct 39 renewable natural gas projects across the United States. The agreement provides for additional contributions as certain project milestones are achieved over the next four In 2022 and 2021, we acquired non-controlling equity interests in certain limited liability companies that qualified for investment tax credits under Section 48 of the Internal Revenue Code. In exchange for our non-controlling interests, we made capital contributions of $121.0 million and $22.7 million, which were recorded to other assets in our June 30, 2022 and 2021 consolidated balance sheets, respectively. During the three and six months ended June 30, 2022, we reduced the carrying value of these investments by $11.9 million and $12.2 million, respectively, and during the three and six months ended June 30, 2021, we reduced the carrying value of these investments by $12.0 million and $25.7 million, respectively, as a result of cash distributions and our share of income and loss pursuant to the terms of the limited liability company agreements. Additionally, our tax provisions reflect a benefits of approximately $24 million and $25 million for the three and six months ended June 30, 2022, respectively, due to the tax credits related to these investments. Our tax provisions reflect a similar benefit of approximately $20 million for both the three and six months ended June 30, 2021. For further discussion of the income tax benefits, refer to Note 11, Income Taxes, in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2021. Restructuring Charges During the three and six months ended June 30, 2022, we incurred restructuring charges of $5.9 million and $11.9 million, respectively, and during the three and six months ended June 30, 2021, we incurred restructuring charges of $3.8 million and $6.6 million, respectively, related to the redesign of certain back-office software systems. During the six months ended June 30, 2022 and 2021, we paid $8.3 million and $8.6 million, respectively, related to these restructuring efforts. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill A summary of the activity and balances in goodwill accounts by reporting segment follows: Balance as of December 31, 2021 Acquisitions Divestitures Adjustments to Acquisitions Balance as of June 30, 2022 Group 1 $ 6,549.7 $ 31.1 $ — $ (2.5) $ 6,578.3 Group 2 5,994.2 203.9 — 6.7 6,204.8 Corporate entities and other 282.1 1,133.4 — (32.3) 1,383.2 Total $ 12,826.0 $ 1,368.4 $ — $ (28.1) $ 14,166.3 Adjustments to acquisitions during the six months ended June 30, 2022 primarily related to changes in our valuation of fixed assets and certain landfill leases as a result of obtaining new information regarding the acquisitions that closed in 2021. The preliminary goodwill associated with our acquisition of US Ecology is assigned to our Environmental Solutions operating segment and is included within Corporate entities and other above. Other Intangible Assets, Net Other intangible assets, net, include values assigned to customer relationships, non-compete agreements and trade names, and are amortized over periods ranging from 1 to 15 years. A summary of the activity and balances by intangible asset type follows: Gross Intangible Assets Accumulated Amortization Balance as of December 31, 2021 Acquisitions Adjustments and Other Balance as of June 30, 2022 Balance as of December 31, 2021 Additions Charged to Expense Adjustments and Other Balance as of June 30, 2022 Other Intangible Assets, Net as of June 30, 2022 Customer relationships $ 898.4 $ 148.6 $ — $ 1,047.0 $ (666.8) $ (19.8) $ 0.2 $ (686.4) $ 360.6 Non-compete agreements 60.4 4.1 — 64.5 (44.6) (3.0) — (47.6) 16.9 Other intangible assets 58.0 10.2 — 68.2 (45.9) (1.1) — (47.0) 21.2 Total $ 1,016.8 $ 162.9 $ — $ 1,179.7 $ (757.3) $ (23.9) $ 0.2 $ (781.0) $ 398.7 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Prepaid Expenses and Other Current Assets A summary of prepaid expenses and other current assets as of June 30, 2022 and December 31, 2021 follows: 2022 2021 Prepaid expenses $ 101.9 $ 85.3 Inventories 100.2 72.2 Income taxes receivable 91.0 173.8 Reinsurance receivable 30.6 31.0 Other non-trade receivables 28.7 32.2 Prepaid fees for cloud-based hosting arrangements, current 8.8 12.9 Other current assets 5.3 3.0 Total $ 366.5 $ 410.4 Other Assets A summary of other assets as of June 30, 2022 and December 31, 2021 follows: 2022 2021 Operating right-of-use lease assets $ 299.5 $ 255.3 Investments 241.3 127.6 Deferred compensation plan 113.5 133.5 Deferred contract costs and sales commissions 79.8 80.6 Reinsurance receivable 79.8 79.5 Derivative and hedging assets 59.5 19.7 Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements 56.1 43.4 Amounts recoverable for capping, closure and post-closure obligations 20.1 19.4 Deferred financing costs 5.3 4.6 Other 35.1 24.0 Total $ 990.0 $ 787.6 |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES Other Accrued Liabilities A summary of other accrued liabilities as of June 30, 2022 and December 31, 2021 follows: 2022 2021 Accrued payroll and benefits $ 267.2 $ 295.0 Insurance reserves, current 191.5 193.5 Accrued fees and taxes 166.4 143.7 Accrued dividends 145.3 145.9 Operating right-of-use lease liabilities, current 56.0 38.2 Ceded insurance reserves, current 30.6 31.0 Accrued professional fees and legal settlement reserves 11.0 8.4 Other 93.3 73.8 Total $ 961.3 $ 929.5 Other Long-Term Liabilities A summary of other long-term liabilities as of June 30, 2022 and December 31, 2021 follows: 2022 2021 Operating right-of-use lease liabilities $ 270.4 $ 239.0 Deferred compensation plan liability 103.0 119.4 Ceded insurance reserves 79.8 79.5 Derivative and hedging liabilities 66.8 50.7 Contingent purchase price and acquisition holdbacks 63.5 64.4 Withdrawal liability - multiemployer pension funds 23.5 24.5 Legal settlement reserves 3.3 3.1 Other 54.9 61.8 Total $ 665.2 $ 642.4 |
Landfill and Environmental Cost
Landfill and Environmental Costs | 6 Months Ended |
Jun. 30, 2022 | |
Environmental Remediation Obligations [Abstract] | |
LANDFILL AND ENVIRONMENTAL COSTS | LANDFILL AND ENVIRONMENTAL COSTS As of June 30, 2022, we owned or operated 207 active landfills with total available disposal capacity estimated to be 5.1 billion in-place cubic yards. Additionally, we had post-closure responsibility for 127 closed landfills. Accrued Landfill and Environmental Costs A summary of accrued landfill and environmental liabilities as of June 30, 2022 and December 31, 2021 follows: 2022 2021 Landfill final capping, closure and post-closure liabilities $ 1,657.2 $ 1,507.3 Environmental remediation 536.9 454.9 Total accrued landfill and environmental costs 2,194.1 1,962.2 Less: current portion (121.3) (124.5) Long-term portion $ 2,072.8 $ 1,837.7 Final Capping, Closure and Post-Closure Costs The following table summarizes the activity in our asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure, for the six months ended June 30, 2022 and 2021: 2022 2021 Asset retirement obligation liabilities, beginning of year $ 1,507.3 $ 1,346.4 Non-cash additions 27.9 23.0 Acquisitions, net of divestitures and other adjustments 88.2 32.6 Asset retirement obligation adjustments 8.0 9.2 Payments (18.0) (26.8) Accretion expense 44.1 41.1 Foreign currency translation (0.3) — Asset retirement obligation liabilities, end of period 1,657.2 1,425.5 Less: current portion (65.8) (61.0) Long-term portion $ 1,591.4 $ 1,364.5 We review annually, in the fourth quarter, and update as necessary, our estimates of asset retirement obligation liabilities. However, if there are significant changes in the facts and circumstances related to a site during the year, we will update our assumptions prospectively in the period that we know all the relevant facts and circumstances and make adjustments as appropriate. Landfill Operating Expenses In the normal course of business, we incur various operating costs associated with environmental compliance. These costs include, among other things, leachate treatment and disposal, methane gas and groundwater monitoring, systems maintenance, interim cap maintenance, costs associated with the application of daily cover materials, and the legal and administrative costs of ongoing environmental compliance. These costs are expensed as cost of operations in the periods in which they are incurred. Environmental Remediation Liabilities We accrue for remediation costs when they become probable and can be reasonably estimated. There can sometimes be a range of reasonable estimates of the costs associated with remediation of a site. In these cases, we use the amount within the range that constitutes our best estimate. If no amount within the range appears to be a better estimate than any other, we use the amount that is at the low end of such range. It is reasonably possible that we will need to adjust the liabilities recorded for remediation to reflect the effects of new or additional information, to the extent such information impacts the costs, timing or duration of the required actions. If we used the reasonably possible high ends of our ranges, our aggregate potential remediation liability as of June 30, 2022 would be approximately $375 million higher than the amount recorded. Future changes in our estimates of the cost, timing or duration of the required actions could have a material adverse effect on our consolidated financial position, results of operations and cash flows. The following table summarizes the activity in our environmental remediation liabilities for the six months ended June 30, 2022 and 2021: 2022 2021 Environmental remediation liabilities, beginning of year $ 454.9 $ 462.8 Net adjustments charged to expense — 4.8 Payments (21.1) (21.7) Accretion expense (non-cash interest expense) 8.6 8.5 Acquisitions, net of divestitures and other adjustments 94.5 14.4 Environmental remediation liabilities, end of period 536.9 468.8 Less: current portion (55.5) (56.6) Long-term portion $ 481.4 $ 412.2 Bridgeton Landfill. During the six months ended June 30, 2022, we paid $6.8 million related to management and monitoring of the remediation area for our closed Bridgeton Landfill in Missouri. We continue to work with state and federal regulatory agencies on our remediation efforts. From time to time, this may require us to modify our future operating timeline and procedures, which could result in changes to our expected liability. As of June 30, 2022, the remediation liability recorded for this site was $96.0 million, of which approximately $9 million is expected to be paid during the remainder of 2022. We believe the remaining reasonably possible high end of our range would be approximately $140 million higher than the amount recorded as of June 30, 2022. West Lake Landfill Superfund Site . Our subsidiary Bridgeton Landfill, LLC is one of several currently designated Potentially Responsible Parties for the West Lake Landfill Superfund site (West Lake) in Missouri. On September 27, 2018, the U.S. Environmental Protection Agency (EPA) issued a Record of Decision Amendment for West Lake that includes a total undiscounted cost estimate of $229 million over a four |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The carrying value of our credit facilities, finance leases and long-term debt as of June 30, 2022 and December 31, 2021 is listed in the following table, and is adjusted for the fair value of interest rate swaps, unamortized discounts, deferred issuance costs and the unamortized portion of adjustments to fair value recorded in purchase accounting. Original issue discounts, deferred issuance costs, and adjustments to fair value recorded in purchase accounting are amortized to interest expense over the term of the applicable instrument using the effective interest method. June 30, 2022 December 31, 2021 Maturity Interest Rate Principal Adjustments Carrying Value Principal Adjustments Carrying Value Credit facilities: Uncommitted Credit Facility Variable $ 137.5 $ — $ 137.5 $ — $ — $ — $3.0 billion - August 2026 Variable 714.4 — 714.4 24.3 — 24.3 Term Loan Variable 1,000.0 — 1,000.0 — — — Commercial Paper Variable 500.0 (0.4) 499.6 — — — Senior notes: May 2023 4.750 300.0 (4.0) 296.0 300.0 (0.1) 299.9 August 2024 2.500 900.0 (4.0) 896.0 900.0 (4.8) 895.2 March 2025 3.200 500.0 (1.9) 498.1 500.0 (2.2) 497.8 November 2025 0.875 350.0 (2.3) 347.7 350.0 (2.6) 347.4 July 2026 2.900 500.0 (2.5) 497.5 500.0 (2.8) 497.2 November 2027 3.375 650.0 (3.4) 646.6 650.0 (3.8) 646.2 May 2028 3.950 800.0 (11.6) 788.4 800.0 (12.4) 787.6 March 2030 2.300 600.0 (5.6) 594.4 600.0 (5.9) 594.1 February 2031 1.450 650.0 (7.5) 642.5 650.0 (7.9) 642.1 February 2032 1.750 750.0 (6.3) 743.7 750.0 (6.6) 743.4 March 2033 2.375 700.0 (7.4) 692.6 700.0 (7.6) 692.4 March 2035 6.086 181.9 (12.5) 169.4 181.9 (12.8) 169.1 March 2040 6.200 399.9 (3.5) 396.5 399.9 (3.6) 396.3 May 2041 5.700 385.7 (4.9) 380.8 385.7 (5.0) 380.7 March 2050 3.050 400.0 (7.0) 393.0 400.0 (7.1) 392.9 Debentures: September 2035 7.400 148.1 (30.6) 117.5 148.0 (31.1) 116.9 Tax-exempt: 2023 - 2051 0.300 - 2.600 1,189.1 (7.4) 1,181.8 1,189.1 (7.6) 1,181.5 Finance leases: 2022 - 2063 0.806 - 9.750 269.3 — 269.3 249.4 — 249.4 Total Debt $ 12,025.9 $ (122.6) 11,903.3 $ 9,678.3 $ (123.9) 9,554.4 Less: current portion (313.8) (8.2) Long-term portion $ 11,589.5 $ 9,546.2 Credit Facilities The Credit Facility In August 2021, we entered into a $3.0 billion unsecured revolving credit facility (the Credit Facility). Borrowings under the Credit Facility mature in August 2026. As permitted by the Credit Facility, we have the right to request two one-year extensions of the maturity date, but none of the lenders are committed to participate in such extensions. The Credit Facility also includes a feature that allows us to increase availability, at our option, by an aggregate amount of up to $1.0 billion through increased commitments from existing lenders or the addition of new lenders. At our option, borrowings under the Credit Facility bear interest at a Base Rate, a daily floating LIBOR, or a Eurodollar Rate, plus a current applicable margin of 0.910% based on our Debt Ratings (all as defined in the Credit Facility agreement). On the earliest of (i) the date that all available tenors of U.S. dollar LIBOR have permanently or indefinitely ceased to be provided or have been announced to be no longer representative, (ii) June 30, 2023 or (iii) the effective date of an election to opt into a SOFR), the LIBOR rate will be replaced by a forward-looking term rate based on SOFR or a daily rate based on SOFR published on such date. The Credit Facility is subject to facility fees based on applicable rates defined in the Credit Facility agreement and the aggregate commitment, regardless of usage. The Credit Facility can be used for working capital, capital expenditures, acquisitions, letters of credit and other general corporate purposes. The Credit Facility agreement requires us to comply with financial and other covenants. We may pay dividends and repurchase common stock if we are in compliance with these covenants. We had $714.4 million and $24.3 million outstanding under our Credit Facility as of June 30, 2022 and December 31, 2021, respectively. We had $350.6 million and $341.9 million of letters of credit outstanding under our Credit Facility as of June 30, 2022 and December 31, 2021, respectively. We also had $499.6 million of outstanding borrowings (net of related discount on issuance) under our commercial paper program as of June 30, 2022. If there is a default under our commercial paper program, we expect to use our Credit Facility to repay any outstanding commercial paper notes. As a result, availability under our Credit Facility was $1,435.0 million and $2,633.8 million as of June 30, 2022 and December 31, 2021, respectively. Uncommitted Credit Facility In January 2022, we entered into a $200.0 million unsecured uncommitted revolving credit facility (the Uncommitted Credit Facility), which replaced the prior $135.0 million uncommitted credit facility (the Replaced Uncommitted Credit Facility). The Uncommitted Credit Facility bears interest at an annual percentage rate to be agreed upon by both parties. Borrowings under the Uncommitted Credit Facility can be used for working capital, letters of credit, and other general corporate purposes. The agreement governing our Uncommitted Credit Facility requires us to comply with certain covenants. The Uncommitted Credit Facility may be terminated by either party at any time. As of June 30, 2022, we had $137.5 million outstanding under our Uncommitted Credit Facility. We had no borrowings outstanding as of December 31, 2021. Term Loan Credit Agreement On April 29, 2022, we entered into the $1.0 billion Term Loan Facility. The Term Loan Facility will mature on April 29, 2025 and bears interest at a base rate or a forward-looking SOFR, plus an applicable margin based on our debt ratings. On May 2, 2022, we completed the acquisition of US Ecology using proceeds from the Term Loan Facility and borrowings under the Credit Facility. Commercial Paper Program In May 2022, we entered into a commercial paper program for the issuance and sale of unsecured commercial paper in an aggregate principal amount not to exceed $500.0 million outstanding at any one time. As of June 30, 2022, we had $500.0 million principal value of commercial paper issued and outstanding under the program, with a weighted average interest rate of 1.845% and weighted average maturity of 24 days. We maintain capacity under the Credit Facility to support our commercial paper program in the event of a default. Accordingly, we have classified these borrowings as long-term in our consolidated balance sheet as of June 30, 2022. Senior Notes and Debentures In November 2021, we issued $700.0 million of 2.375% senior notes due 2033 (the 2.375% Notes). We used the net proceeds for general corporate purposes, including repayment of amounts outstanding under our unsecured and uncommitted credit facilities. Prior to such use, Republic may have temporarily invested the net proceeds in marketable securities and short-term investments. During the second quarter of 2021, we paid the entire $35.3 million principal balance of our 9.250% debentures which matured in May 2021. Our senior notes and debentures are general unsecured obligations. Interest is payable semi-annually. Interest Rate Swap and Lock Agreements Our ability to obtain financing through the capital markets is a key component of our financial strategy. Historically, we have managed risk associated with executing this strategy, particularly as it relates to fluctuations in interest rates, by using a combination of fixed and floating rate debt. From time to time, we also have entered into interest rate swap and lock agreements to manage risk associated with interest rates, either to effectively convert specific fixed rate debt to a floating rate (fair value hedges), or to lock interest rates in anticipation of future debt issuances (cash flow hedges). Fair Value Hedges During the second half of 2013, we entered into various interest rate swap agreements (the 2013 Interest Rate Swaps) relative to our 4.750% fixed rate senior notes due in May 2023 (4.750% Notes). The goal was to reduce overall borrowing costs and rebalance our debt portfolio's ratio of fixed-to-floating interest rates. As of June 30, 2022, these swap agreements had a total notional value of $300.0 million and mature in May 2023. We pay interest at floating rates based on changes in LIBOR and receive interest at a fixed rate of 4.750%. In 2013, these transactions were designated as fair value hedges because the swaps hedge against the changes in fair value of the 4.750% notes resulting from changes in interest rates. Contemporaneously with the $250.0 million partial redemption of the 4.750% Notes in November 2020, we dedesignated the proportional share of these swap agreements as fair value hedges. There was no ineffectiveness recognized in the dedesignation of these fair value hedges. Following the dedesignation, the fair value of these free-standing derivatives was determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy). As of June 30, 2022 and December 31, 2021, these free-standing derivatives were reflected at their fair value of a $0.4 million liability and a $3.9 million asset, respectively, and are included in other long-term liabilities and other assets, respectively, in our consolidated balance sheets. For the three and six months ended June 30, 2022, we recognized losses of $1.6 million and $4.3 million, respectively, and for the three and six months ended June 30, 2021, we recognized losses of $0.8 million and $2.0 million, respectively, directly in earnings as an adjustment to non-cash interest expense attributable to the change in fair value of the free-standing derivatives. As of June 30, 2022 and December 31, 2021, the 2013 Interest Rate Swaps that were designated as fair value hedges are reflected at their fair value of a $0.5 million liability and a $4.7 million asset, respectively, and are included in other long-term liabilities and other assets, respectively, in our consolidated balance sheets. To the extent they are effective, the remaining hedged portion of these interest rate swap agreements is included as an adjustment to long-term debt in our consolidated balance sheets. We recognized net interest income of $1.4 million and $2.0 million during the three months ended June 30, 2022 and 2021, respectively, and net interest income of $3.2 million and $3.9 million during the six months ended June 30, 2022 and 2021, respectively, related to net swap settlements for these interest rate swap agreements, which is included as an offset to interest expense in our consolidated statements of income. For the three months ended June 30, 2022 and 2021, we recognized gains of $1.3 million and $1.1 million, respectively, related to the impact of changes in the benchmark interest rate on the fair value of the hedged senior notes and offsetting losses of $1.9 million and $1.0 million, respectively, on the related interest rate swaps attributable to changes in the benchmark interest rate. For the six months ended June 30, 2022 and 2021, we recognized gains of $4.0 million and $2.6 million, respectively, related to the impact of changes in the benchmark interest rate on the fair value of the hedged senior notes and offsetting losses of $5.2 million and $2.4 million, respectively, on the related interest rate swaps attributable to changes in the benchmark interest rate. The difference of these fair value changes for the three and six months ended June 30, 2022 and 2021 was recorded directly in earnings as an adjustment to interest expense in our consolidated statements of income. For further detail regarding the effect of our fair value hedging on interest expense, refer to Note 11, Financial Instruments , of the notes to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q. Cash Flow Hedges We have historically entered into multiple swap agreements designated as cash flow hedges to manage exposure to fluctuations in interest rates in anticipation of planned future issuances of senior notes. Upon the expected issuance of senior notes, we terminate the interest rate locks and settle with our counterparties. These transactions were accounted for as cash flow hedges. All of our cash flow hedges settled on or before December 31, 2020. The fair value of our interest rate locks is determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy). As of June 30, 2022 and December 31, 2021, our previously terminated interest rate locks were recorded as components of accumulated other comprehensive loss of $23.6 million and $25.8 million, respectively, net of tax. The effective portion of the interest rate locks is amortized as an adjustment to interest expense over the life of the issued debt using the effective interest method. Over the next 12 months, we expect to amortize approximately $4.2 million, net of tax, from accumulated other comprehensive loss to interest expense as a yield adjustment of our senior notes. In connection with our acquisition of US Ecology, we novated an acquired interest rate swap agreement (the 2022 Interest Rate Swap) with an initial effective date of March 6, 2020 and an initial notional amount of $500.0 million relative to our Term Loan Facility. The interest rate swap matures in November 2026. The goal was to reduce overall borrowing costs. Under the terms of the acquired agreement, we pay interest at a fixed interest rate of 0.832% and received interest at floating rates based on changes in LIBOR. The interest rate swap is designated as a cash flow hedge. In May 2022, following the closing of the acquisition, we amended the reference rate from a floating rate based on LIBOR to a SOFR rate. In accordance with ASU 2020-04, the amendment of the reference rate did not result in dedesignation of the cash flow hedge. Changes in the fair value of the interest rate swap are recorded as a component of accumulated other comprehensive loss and are recognized in interest expense in the period in which the payment is settled. The fair value of our floating-to-fixed interest rate swap is determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy). As of June 30, 2022, the 2022 Interest Rate Swap was recorded at its fair value of $27.7 million and is included in other assets in our consolidated balance sheets. Total unrealized loss recognized in accumulated other comprehensive loss for the 2022 Interest Rate Swap was $1.1 million, net of tax, for the three months ended June 30, 2022. For further detail regarding the effect of our cash flow hedging on interest expense, refer to Note 11, Financial Instruments , of the notes to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q. Derivative Contracts Contemporaneously with the issuance of our 2.300% Notes in February 2020, we amended interest rate lock agreements with an aggregate notional value of $550.0 million, extending the mandatory maturity date from 2020 to 2030, and dedesignated them as cash flow hedges (2020 Extended Interest Rate Locks). Contemporaneously with the issuance of our 2.500% Notes in August 2019, we amended interest rate lock agreements with an aggregate notional value of $375.0 million, extending the mandatory maturity date from 2019 to 2024, and dedesignated them as cash flow hedges (2019 Extended Interest Rate Locks and collectively with the 2020 Extended Interest Rate Locks referred to as the Extended Interest Rate Locks). There was no ineffectiveness recognized in the termination of these cash flow hedges. In addition, we entered into offsetting interest rate swaps to offset future exposures to fair value fluctuations of the Extended Interest Rate Locks (2019 Offsetting Interest Rate Swap and the 2020 Offsetting Interest Rate Swap, or collectively the Offsetting Interest Rate Swaps). The fair value of these free-standing derivatives was determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy). As of June 30, 2022 and December 31, 2021, the fair values of the 2019 Extended Interest Rate Locks were liabilities of $0.4 million and $20.9 million, respectively, which were included in other long-term liabilities in our consolidated balance sheets. As of June 30, 2022, the fair value of the 2020 Extended Interest Rate Locks were assets of $31.8 million, which were included in other assets in our consolidated balance sheet, and as of December 31, 2021, the fair value of the 2020 Extended Interest Rate Locks were liabilities of $29.0 million, which were included in other long-term liabilities in our consolidated balance sheet. As of June 30, 2022, the fair value of the 2019 Offsetting Interest Rate Swap was a liability of $9.6 million, which was included in other long-term liabilities in our consolidated balance sheet, and as of December 31, 2021, the fair value of the 2019 Offsetting Interest Rate Swap was an asset of $11.1 million, which was included in other assets in our consolidated balance sheet. As of June 30, 2022 and December 31, 2021, the fair value of the 2020 Offsetting Interest Rate Swap was a liability of $55.9 million and $0.8 million, respectively, which were included in other long-term liabilities in our consolidated balance sheets. For the three and six months ended June 30, 2022, we recognized gains of $21.7 million and $74.8 million, respectively, on the change in fair value of the Extended Interest Rate Locks with offsetting losses of $21.3 million and $73.1 million, respectively, on the change in fair value of the Offsetting Interest Rate Swaps. For the three and six months ended June 30, 2021, we recognized losses of $18.2 million and gains of $28.9 million, respectively, on the change in fair value of the Extended Interest Rate Locks with offsetting gains of $17.6 million and offsetting losses of $29.1 million, respectively, on the change in fair value of the Offsetting Interest Rate Swaps. The changes in fair value were recorded directly in earnings as an adjustment to interest expense in our consolidated statements of income. Tax-Exempt Financings As of June 30, 2022 and December 31, 2021 we had $1,181.8 million and $1,181.5 million of certain variable rate tax-exempt financings outstanding respectively, with maturities ranging from 2023 to 2051. During 2021, we issued $205.0 million of tax exempt financings. In the fourth quarter of 2021, the Pennsylvania Economic Development Financing Authority issued, for our benefit, $30.0 million of Solid Waste Disposal Revenue Bonds. The proceeds from the issuance, after deferred issuance costs, will be used to fund qualifying landfill-related expenditures in the Commonwealth of Pennsylvania, of which $27.7 million and $17.2 million was incurred and reimbursed to us as of June 30, 2022 and December 31, 2021, respectively . As of June 30, 2022 and December 31, 2021 , we had $121.5 million and $139.0 million, respectively, of restricted cash and marketable securities, of which $2.0 million and $12.4 million, respectively, represented proceeds from the issuance of the tax-exempt bonds. All of our tax-exempt financings are remarketed either quarterly or semiannually by remarketing agents to effectively maintain a variable yield. The holders of the bonds can put them back to the remarketing agents at the end of each interest period. If the remarketing agent is unable to remarket our bonds, the remarketing agent can put the bonds to us. In the event of a failed remarketing, we currently have availability under our Credit Facility to fund these bonds until they are remarketed successfully. Accordingly, we classified these borrowings as long-term in our consolidated balance sheets as of June 30, 2022 and December 31, 2021. Finance Leases |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate, exclusive of non-controlling interests, for the three and six months ended June 30, 2022 was 22.2% and 23.8%, respectively. Our effective tax rate, exclusive of non-controlling interests, for the three and six months ended June 30, 2021 was 22.4% and 24.1%, respectively. Net cash paid for income taxes was $78.9 million and $54.3 million for the six months ended June 30, 2022 and 2021, respectively. We recorded approximately $151 million of current and deferred income taxes as part of our preliminary purchase price allocation for our acquisition of US Ecology. This allocation is subject to change until we finalize our valuations and other estimates. We have deferred tax assets related to state net operating loss carryforwards. We provide a partial valuation allowance due to uncertainty surrounding the future utilization of these carryforwards in the taxing jurisdictions where the loss carryforwards exist. When determining the need for a valuation allowance, we consider all positive and negative evidence, including recent financial results, scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies. The realization of our deferred tax asset for state loss carryforwards ultimately depends upon the existence of sufficient taxable income in the appropriate state taxing jurisdictions in future periods. The weight given to the positive and negative evidence is commensurate with the extent such evidence can be objectively verified. We continue to regularly monitor both positive and negative evidence in determining the ongoing need for a valuation allowance. As of June 30, 2022, the valuation allowance associated with our state loss carryforwards was approximately $43 million. As a result of the acquisition of US Ecology as of June 30, 2022, the valuation allowance associated with our foreign jurisdiction tax credits was approximately $4 million. We are subject to income tax in the United States, as well as income tax in multiple state and foreign jurisdictions. Our compliance with income tax rules and regulations is periodically audited by taxing authorities. These authorities may challenge the positions taken in our tax filings. Thus, to provide for certain potential tax exposures, we maintain liabilities for uncertain tax positions for our estimate of the final outcome of the examinations. Our federal statute of limitations is closed for all years prior to 2015. The tax years 2017 through 2021 remain subject to examination in our foreign jurisdictions. The 2017 through 2021 state tax returns are subject to examination by state tax authorities. We are currently under examination by the Internal Revenue Service (IRS) for tax years 2015 through 2018. In addition, we are currently under state examination or administrative review in various state jurisdictions for tax years 2012 through 2020. We believe the recorded liabilities for uncertain tax positions are adequate. However, a significant assessment against us in excess of the liabilities recorded could have a material adverse effect on our consolidated financial position, results of operations and cash flows. As of June 30, 2022, we are unable to estimate the resolution of our gross unrecognized benefits over the next 12 months. We recognize interest and penalties as incurred within the provision for income taxes in the consolidated statement of income. As of June 30, 2022, we accrued a liability for penalties of $0.3 million and a liability for interest (including interest on penalties) of $14.3 million related to our uncertain tax positions. |
Stock Repurchases, Dividends an
Stock Repurchases, Dividends and Earnings per Share | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE | STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE Available Shares We currently have approximately 12.0 million shares of common stock reserved for future grants under the Republic Services, Inc. 2021 Stock Incentive Plan. Stock Repurchases In October 2020, our Board of Directors approved a $2.0 billion share repurchase authorization effective starting January 1, 2021 and extending through December 31, 2023. Share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws. While the Board of Directors has approved the program, the timing of any purchases, the prices and the number of shares of common stock to be purchased will be determined by our management, at its discretion, and will depend upon market conditions and other factors. On a quarterly basis, our Board of Directors reviews the intrinsic value of our stock and the parameters around which we repurchase our shares. The share repurchase program may be extended, suspended or discontinued at any time. Stock repurchase activity during the three and six months ended June 30, 2022 and 2021 follows (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Number of shares repurchased — 0.3 1.6 0.4 Amount paid $ — $ 27.4 $ 203.5 $ 40.1 Weighted average cost per share $ — $ 108.68 $ 124.02 $ 101.84 As of June 30, 2022, no repurchased shares were pending settlement. As of June 30, 2021, 0.5 million repurchased shares were pending settlement. As of June 30, 2021, $52.1 million of share repurchases were unpaid and included within other accrued liabilities. As of June 30, 2022, the remaining authorized purchase capacity under our October 2020 repurchase program was $1.5 billion. Dividends In April 2022, our Board of Directors approved a quarterly dividend of $0.46 per share. Cash dividends declared were $290.6 million for the six months ended June 30, 2022. As of June 30, 2022, we recorded a quarterly dividend payable of $145.3 million to shareholders of record at the close of business on July 1, 2022. Earnings per Share Basic earnings per share is computed by dividing net income attributable to Republic Services, Inc. by the weighted average number of common shares (including vested but unissued restricted stock units and performance stock units) outstanding during the period. Diluted earnings per share is based on the combined weighted average number of common shares and common share equivalents outstanding, which include, where appropriate, the unvested restricted stock units (RSUs) and the unvested performance stock units (PSUs) at the expected attainment levels. We use the treasury stock method in computing diluted earnings per share. Earnings per share for the three and six months ended June 30, 2022 and 2021 are calculated as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Basic earnings per share: Net income attributable to Republic Services, Inc. $ 371,888 $ 331,065 $ 723,912 $ 627,009 Weighted average common shares outstanding 316,473 319,526 316,538 319,487 Basic earnings per share $ 1.18 $ 1.04 $ 2.29 $ 1.96 Diluted earnings per share: Net income attributable to Republic Services, Inc. $ 371,888 $ 331,065 $ 723,912 $ 627,009 Weighted average common shares outstanding 316,473 319,526 316,538 319,487 Effect of dilutive securities: Unvested RSU awards 126 232 170 187 Unvested PSU awards 361 283 372 263 Weighted average common and common equivalent shares outstanding 316,960 320,041 317,079 319,937 Diluted earnings per share $ 1.17 $ 1.03 $ 2.28 $ 1.96 During each of the three and six months ended June 30, 2022 and 2021, there were less than 0.1 million antidilutive securities outstanding. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT A summary of changes in accumulated other comprehensive loss, net of tax, by component, for the six months ended June 30, 2022 follows: Cash Flow Hedges Defined Benefit Pension Items Foreign Currency Translation Total Balance as of December 31, 2021 $ (25.8) $ 11.2 $ — $ (14.6) Other comprehensive income (loss) before reclassifications (1.1) — 0.1 (1.0) Amounts reclassified from accumulated other comprehensive income 2.2 — — 2.2 Net current period other comprehensive income 1.1 — 0.1 1.2 Balance as of June 30, 2022 $ (24.7) $ 11.2 $ 0.1 $ (13.4) A summary of reclassifications out of accumulated other comprehensive loss for the three and six months ended June 30, 2022 and 2021 follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive (Loss) Income Amount Reclassified from Accumulated Other Comprehensive (Loss) Income Affected Line Item in the Statement where Net Income is Presented Loss on cash flow hedges: Terminated interest rate locks $ (1.5) $ (1.6) $ (3.0) $ (3.1) Interest expense 2022 Interest Rate Swap — — — — Interest expense Total before tax (1.5) (1.6) (3.0) (3.1) Tax benefit 0.4 0.4 0.8 0.8 Net of tax $ (1.1) $ (1.2) $ (2.2) $ (2.3) Pension gains: Pension settlement $ — $ 0.9 $ — $ 0.9 Other income Tax expense — (0.2) — (0.2) Net of tax — 0.7 — 0.7 Total loss reclassified into earnings, net of tax $ (1.1) $ (0.5) $ (2.2) $ (1.6) |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The effect of our hedging relationships and derivative instruments on the consolidated statements of income for the three and six months ended June 30, 2022 and 2021 follows (in millions): Classification and amount of gain (loss) recognized in income on hedging relationships and derivative instruments Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Interest Expense Interest Expense Interest Expense Interest Expense Total amount of expense line items presented in the consolidated statements of income in which the effects of hedging relationships and derivative instruments are recorded $ (94.0) $ (78.4) $ (177.5) $ (156.7) The effects of fair value and cash flow hedging relationships in Subtopic 815-20: Gain on fair value hedging relationships: Interest rate swaps: Net swap settlements $ 1.4 $ 2.0 $ 3.2 $ 3.9 Net periodic (loss) earnings $ (0.6) $ 0.1 $ (1.2) $ 0.2 Loss on cash flow hedging relationships: Interest rate swap locks: Amount of loss reclassified from accumulated other comprehensive loss into income, net of tax $ (1.1) $ (1.2) $ (2.2) $ (2.3) The effects of derivative instruments not in Subtopic 815-20: Gain (loss) on free-standing derivative instruments: Interest rate swaps: Loss on change in fair value of free-standing derivative instruments $ (1.6) $ (0.8) $ (4.3) $ (2.0) Interest rate contract: Net gain (loss) on change in fair value of free-standing derivative instruments $ 0.4 $ (0.6) $ 1.7 $ (0.2) Fair Value Measurements In measuring fair values of assets and liabilities, we use valuation techniques that maximize the use of observable inputs (Level 1) and minimize the use of unobservable inputs (Level 3). We also use market data or assumptions that we believe market participants would use in pricing an asset or liability, including assumptions about risk when appropriate. The carrying value for certain of our financial instruments, including cash, accounts receivable, current investments, accounts payable and certain other accrued liabilities, approximates fair value because of their short-term nature. As of June 30, 2022 and December 31, 2021, our assets and liabilities that are measured at fair value on a recurring basis include the following: June 30, 2022 Fair Value Carrying Amount Total Quoted Significant Significant Assets: Money market mutual funds $ 30.5 $ 30.5 $ 30.5 $ — $ — Bonds - restricted cash and marketable securities and other assets 57.4 57.4 — 57.4 — Derivative and hedging assets - other assets 59.5 59.5 — 59.5 — Total assets $ 147.4 $ 147.4 $ 30.5 $ 116.9 $ — Liabilities: Derivative and hedging liabilities - other long-term liabilities $ 66.8 $ 66.8 $ — $ 66.8 $ — Contingent consideration - other accrued liabilities and other long-term liabilities 67.9 67.9 — — 67.9 Total liabilities $ 134.7 $ 134.7 $ — $ 66.8 $ 67.9 December 31, 2021 Fair Value Carrying Amount Total Quoted Significant Significant Assets: Money market mutual funds $ 35.2 $ 35.2 $ 35.2 $ — $ — Bonds - restricted cash and marketable securities and other assets 63.1 63.1 — 63.1 — Derivative and hedging assets - other assets 19.7 19.7 — 19.7 — Total assets $ 118.0 $ 118.0 $ 35.2 $ 82.8 $ — Liabilities: Derivative and hedging liabilities - other long-term liabilities $ 50.7 $ 50.7 $ — $ 50.7 $ — Contingent consideration - other accrued liabilities and other long-term liabilities 68.8 68.8 — — 68.8 Total liabilities $ 119.5 $ 119.5 $ — $ 50.7 $ 68.8 Total Debt The carrying value of our total debt was $11.9 billion and $9.6 billion as of June 30, 2022 and December 31, 2021, respectively, and the fair value of our total debt was $11.4 billion and $10.3 billion, respectively. The estimated fair value of our fixed rate senior notes and debentures is based on quoted market prices. The fair value of our remaining notes payable, tax-exempt financings and borrowings under our credit facilities approximates the carrying value because the interest rates are variable. The fair value estimates were based on Level 2 inputs of the fair value hierarchy as of June 30, 2022 and December 31, 2021. See Note 7, Debt , for further information related to our debt. Contingent Consideration In 2015, we entered into a waste management contract with the County of Sonoma, California to operate the county's waste management facilities. As of June 30, 2022, the Sonoma contingent consideration represents the fair value of $61.4 million payable to the County of Sonoma based on the achievement of future annual tonnage targets through the expected remaining |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, which are our operating segments, referred to as Group 1, Group 2, and Environmental Solutions. Each of our operating segments provides integrated environmental services, including collection, transfer, recycling, and disposal. Group 1 primarily consists of geographic areas located in the western United States, and Group 2 primarily consists of geographic areas located in the southeastern and mid-western United States, and the eastern seaboard of the United States. Our Environmental Solutions operating segment, which provides environmental solutions for daily operations of industrial, petrochemical and refining facilities is aggregated with Corporate entities and other as it only represents approximately 6.2% of our consolidated revenue for the six months ended June 30, 2022. Our Environmental Solutions operating segment included the financial results of US Ecology following our acquisition of the business on May 2, 2022. Summarized financial information concerning our reportable segments for the three and six months ended June 30, 2022 and 2021 follows: Gross Revenue Intercompany Revenue Net Revenue Depreciation, Amortization, Depletion and Accretion Operating Income (Loss) Capital Expenditures Total Assets Three Months Ended June 30, 2022 Group 1 $ 1,827.5 $ (279.0) $ 1,548.4 $ 145.9 $ 415.1 $ 123.3 $ 12,211.8 Group 2 1,768.8 (241.9) 1,526.9 148.7 328.4 111.8 10,225.8 Corporate entities and other 361.0 (22.7) 338.3 65.4 (153.9) 78.1 5,775.3 Total $ 3,957.3 $ (543.6) $ 3,413.6 $ 360.0 $ 589.6 $ 313.2 $ 28,212.9 Three Months Ended June 30, 2021 Group 1 $ 1,668.3 $ (275.0) $ 1,393.3 $ 138.7 $ 379.8 $ 149.3 $ 11,946.7 Group 2 1,576.9 (235.0) 1,341.9 138.0 283.6 108.8 9,649.3 Corporate entities and other 88.3 (11.2) 77.1 47.0 (145.5) 19.5 2,326.1 Total $ 3,333.5 $ (521.2) $ 2,812.3 $ 323.7 $ 517.9 $ 277.6 $ 23,922.1 Gross Revenue Intercompany Revenue Net Revenue Depreciation, Amortization, Depletion and Accretion Operating Income (Loss) Capital Expenditures Total Assets Six Months Ended June 30, 2022 Group 1 $ 3,529.7 $ (540.8) $ 2,988.8 $ 289.6 $ 787.9 $ 233.8 $ 12,211.8 Group 2 3,367.3 (459.2) 2,908.1 290.9 647.8 203.1 10,225.8 Corporate entities and other 526.4 (39.6) 486.8 111.5 (285.5) 210.3 5,775.3 Total $ 7,423.4 $ (1,039.6) $ 6,383.7 $ 692.0 $ 1,150.2 $ 647.2 $ 28,212.9 Six Months Ended June 30, 2021 Group 1 $ 3,215.9 $ (524.0) $ 2,691.9 $ 270.8 $ 731.3 $ 274.1 $ 11,946.7 Group 2 3,000.7 (436.8) 2,563.9 266.8 545.4 191.4 9,649.3 Corporate entities and other 174.0 (21.6) 152.4 88.7 (266.4) 143.1 2,326.1 Total $ 6,390.6 $ (982.4) $ 5,408.2 $ 626.3 $ 1,010.3 $ 608.6 $ 23,922.1 |
Revenue and Credit Losses
Revenue and Credit Losses | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE AND CREDIT LOSSES | REVENUE AND CREDIT LOSSES Our operations primarily consist of providing environmental services. The following table disaggregates our revenue by service line for the three and six months ended June 30, 2022 and 2021 (in millions of dollars and as a percentage of revenue): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Collection: Residential $ 654.1 19.2 % $ 611.6 21.7 % $ 1,282.0 20.1 % $ 1,204.7 22.2 % Small-container 975.6 28.6 843.2 30.0 1,891.2 29.6 1,653.4 30.5 Large-container 687.4 20.1 594.6 21.1 1,308.5 20.5 1,129.0 20.9 Other 13.3 0.4 13.0 0.5 25.7 0.4 25.4 0.5 Total collection 2,330.4 68.3 2,062.4 73.3 4,507.4 70.6 4,012.5 74.1 Transfer 407.8 383.7 770.4 715.0 Less: intercompany (215.9) (208.1) (413.7) (393.2) Transfer, net 191.9 5.6 175.6 6.2 356.7 5.6 321.8 6.0 Landfill 699.0 654.2 1,316.1 1,219.3 Less: intercompany (292.9) (283.2) (560.5) (532.5) Landfill, net 406.1 11.9 371.0 13.2 755.6 11.8 686.8 12.7 Environmental solutions 308.0 37.6 416.9 76.6 Less: intercompany (13.7) (3.5) (23.3) (7.6) Environmental solutions, net 294.3 8.6 34.1 1.2 393.6 6.2 69.0 1.3 Other: Recycling processing and commodity sales 113.6 3.3 103.0 3.7 213.3 3.3 190.6 3.5 Other non-core 77.4 2.3 66.2 2.4 157.0 2.5 127.5 2.4 Total other 191.0 5.6 169.2 6.1 370.3 5.8 318.1 5.9 Total revenue $ 3,413.6 100.0 % $ 2,812.3 100.0 % $ 6,383.7 100.0 % $ 5,408.2 100.0 % Other non-core revenue consists primarily of revenue from National Accounts, which represents the portion of revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local operators. Consequently, substantially all of this revenue is offset with related subcontract costs, which are recorded in cost of operations. Environmental solutions revenue includes revenue generated by US Ecology following its acquisition on May 2, 2022. The factors that impact the timing and amount of revenue recognized for each service line may vary based on the nature of the service performed. Generally, we recognize revenue at the time we perform a service. In the event that we bill for services in advance of performance, we recognize deferred revenue for the amount billed and subsequently recognize revenue at the time the service is provided. Depending on the nature of the contract, we may also generate revenue through the collection of fuel recovery fees and environmental fees which are designed to recover our internal costs of providing services to our customers. Substantially all of the deferred revenue recognized as of December 31, 2021 was recognized as revenue during the six months ended June 30, 2022 when the service was performed. See Note 12, Segment Reporting , for additional information regarding revenue by reportable segment. Revenue Recognition Our service obligations of a long-term nature, e.g., certain collection service contracts and waste treatment and disposal contracts are satisfied over time, and we recognize revenue based on the value provided to the customer during the period. The amount billed to the customer is based on variable elements such as the number of residential homes or businesses for which collection services are provided, the volume of material collected, transported and disposed, and the nature of the material accepted. We do not disclose the value of unsatisfied performance obligations for these contracts as our right to consideration corresponds directly to the value provided to the customer for services completed to date and all future variable consideration is allocated to wholly unsatisfied performance obligations. Certain elements of our long-term customer contracts are unknown upon entering into the contract, including the amount that will be billed in accordance with annual price escalation clauses, our fuel recovery fee program and commodity prices. The amount to be billed is often tied to changes in an underlying base index such as a consumer price index or a fuel or commodity index, and revenue can be recognized once the index is established for the period. Deferred Contract Costs We incur certain upfront payments to acquire customer contracts which are recognized as other assets in our consolidated balance sheet, and we amortize the asset over the respective contract life. In addition, we recognize sales commissions that represent an incremental cost of the contract as other assets in our consolidated balance sheets, and we amortize the asset over the average life of the customer relationship. As of June 30, 2022 and December 31, 2021, we recognized $79.8 million and $80.6 million, respectively, of deferred contract costs and capitalized sales commissions. During the three and six months ended June 30, 2022, we amortized $3.5 million and $6.7 million, respectively, of capitalized sales commissions to selling, general and administrative expenses and we amortized $1.5 million and $3.0 million, respectively, of other deferred contract costs as a reduction of revenue. During the three and six months ended June 30, 2021, we amortized $3.2 million and $6.4 million, respectively, of capitalized sales commissions to selling, general and administrative expenses and we amortized $1.6 million and $3.1 million, respectively, of other deferred contract costs as a reduction of revenue. Credit Losses Accounts receivable represent receivables from customers for environmental services, including collection and processing of recyclable materials, collection, transfer, and disposal of solid waste, and other environmental solutions. Our receivables are recorded when billed or when the related revenue is earned and represent claims against third parties that will be settled in cash. The carrying value of our receivables, net of the allowance for doubtful accounts and customer credits, represents their estimated net realizable value. We establish an allowance for doubtful accounts based on various factors including the age of receivables outstanding, historical trends, economic conditions and other information. We also review outstanding balances on an account-specific basis based on the credit risk of the customer. We determined that all of our accounts receivable share similar risk characteristics. We monitor our credit exposure on an ongoing basis and assess whether assets in the pool continue to display similar risk characteristics. We perform ongoing credit evaluations of our customers, but generally do not require collateral to support customer receivables. The following table reflects the activity in our allowance for doubtful accounts for the six months ended June 30, 2022 and 2021: 2022 2021 Balance at beginning of year $ 38.5 $ 34.7 Additions charged to expense 17.2 11.4 Accounts written-off (5.1) (7.0) Balance at end of period $ 50.6 $ 39.1 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings We are subject to extensive and evolving laws and regulations and have implemented safeguards to respond to regulatory requirements. In the normal course of our business, we become involved in legal proceedings. Some may result in fines, penalties or judgments against us, or settlements, which may impact earnings and cash flows for a particular period. Although we cannot predict the ultimate outcome of any legal matter with certainty, we do not believe the outcome of any of our pending legal proceedings will have a material adverse impact on our consolidated financial position, results of operations or cash flows. As used herein, the term legal proceedings refers to litigation and similar claims against us and our subsidiaries, excluding: (1) ordinary course accidents, general commercial liability and workers' compensation claims, which are covered by insurance programs, subject to customary deductibles, and which, together with insured employee health care costs, are discussed in Note 5, Other Liabilities; and (2) environmental remediation liabilities, which are discussed in Note 6, Landfill and Environmental Costs. We accrue for legal proceedings when losses become probable and reasonably estimable. We have recorded an aggregate accrual of approximately $14 million relating to our outstanding legal proceedings as of June 30, 2022. As of the end of each applicable reporting period, we review each of our legal proceedings and, where it is probable that a liability has been incurred, we accrue for all probable and reasonably estimable losses. Where we can reasonably estimate a range of losses we may incur regarding such a matter, we record an accrual for the amount within the range that constitutes our best estimate. If we can reasonably estimate a range but no amount within the range appears to be a better estimate than any other, we use the amount that is the low end of such range. If we had used the high ends of such ranges, our aggregate potential liability would be approximately $11 million higher than the amount recorded as of June 30, 2022. Multiemployer Pension Plans We participate in multiemployer pension plans that generally provide retirement benefits to participants of contributing employers. We do not administer these plans. Under current law regarding multiemployer pension plans, our withdrawal (which we consider from time to time) or the mass withdrawal from any under-funded multiemployer pension plan (each, a Withdrawal Event) could require us to make payments to the plan for our proportionate share of the plan’s unfunded vested liabilities. During the course of operating our business, we incur Withdrawal Events regarding certain of the multiemployer pension plans in which we participate. We accrue for such events when losses become probable and reasonably estimable. Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Beginning-of-period and end-of-period cash, cash equivalents, restricted cash and restricted cash equivalents as presented in the statement of cash flows is reconciled as follows: June 30, 2022 December 31, 2021 June 30, 2021 December 31, 2020 Cash and cash equivalents $ 119.4 $ 29.0 $ 34.0 $ 38.2 Restricted cash and marketable securities 121.5 139.0 151.0 149.1 Less: restricted marketable securities (57.2) (62.4) (73.0) (73.1) Cash, cash equivalents, restricted cash and restricted cash equivalents $ 183.7 $ 105.6 $ 112.0 $ 114.2 Our restricted cash and marketable securities include, among other things, restricted cash related to proceeds from the issuance of tax-exempt bonds that will be used to fund qualifying landfill-related expenditures in the Commonwealth of Pennsylvania, restricted cash and marketable securities pledged to regulatory agencies and governmental entities as financial guarantees of our performance under certain collection, landfill and transfer station contracts and permits, and relating to our final capping, closure and post-closure obligations at our landfills as well as restricted cash and marketable securities related to our insurance obligations. The following table summarizes our restricted cash and marketable securities: June 30, 2022 December 31, 2021 Financing proceeds $ 2.0 $ 12.4 Capping, closure and post-closure obligations 38.3 42.4 Insurance 81.2 84.2 Total restricted cash and marketable securities $ 121.5 $ 139.0 Off-Balance Sheet Arrangements We have no off-balance sheet debt or similar obligations, other than short-term operating leases and financial assurances, which are not classified as debt. We have no transactions or obligations with related parties that are not disclosed, consolidated into or reflected in our reported financial position or results of operations. We have not guaranteed any third-party debt. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Management's Estimates and Assumptions | Management’s Estimates and Assumptions In preparing our financial statements, we make numerous estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. We must make these estimates and assumptions because certain information we use is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. In preparing our financial statements, the more critical and subjective areas that deal with the greatest amount of uncertainty relate to our accounting for our long-lived assets, including recoverability, landfill development costs, and final capping, closure and post-closure costs; our valuation allowances for accounts receivable and deferred tax assets; our liabilities for potential litigation, claims and assessments; our liabilities for environmental remediation, multiemployer pension funds, employee benefit plans, deferred taxes, uncertain tax positions, and insurance reserves; and our estimates of the fair values of assets acquired and liabilities assumed in any acquisition. Each of these items is discussed in more detail in our description of our significant accounting policies in Note 2, Summary of Significant Accounting Policies , of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Our actual results may differ significantly from our estimates. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards Updates Issued but not yet Adopted Facilitation of the Effects of Reference Rate Reform on Financial Reporting In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. During the quarter ended June 30, 2022, we novated a certain hedging relationship related to one of our interest rate swap agreements by changing the reference rate from the London Interbank Offered Rate (LIBOR) to a secured overnight financing rate (SOFR). The amendment did not have a material impact on our consolidated financial statements. For further discussion of the amendment and relevant hedging relationship, refer to Note 7, Debt, in Part I, Item 1 of this Quarterly Report on Form 10-Q. We have not modified any other contracts as a result of reference rate reform. Business Combinations In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08). ASU 2021-08 improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the recognition of an acquired contract liability and the payment terms and their effect on subsequent revenue recognized by the acquirer. ASU 2021-08 is effective for all entities that enter into a business combination within the applicable scope. The amendments in this update are effective for fiscal years beginning after December 15, 2022. We are currently assessing the effect this guidance may have on our consolidated financial statements. |
Business Acquisitions, Invest_2
Business Acquisitions, Investments and Restructuring Charges (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Purchase price paid for business acquisition and allocation of purchase price | The aggregate purchase price paid for these business acquisitions and the allocations of the aggregate purchase price follows: 2022 2021 Purchase price: Cash used in acquisitions, net of cash acquired of $64.6 and $3.0, respectively $ 2,516.6 $ 561.7 Holdbacks 10.1 5.5 Fair value, future minimum finance lease payments 15.6 40.2 Total $ 2,542.3 $ 607.4 Allocated as follows: Restricted cash $ — $ 7.2 Accounts receivable 250.5 16.7 Prepaid expenses 15.5 — Landfill development costs 495.7 65.9 Property and equipment 688.0 67.1 Operating right-of-use lease assets 55.4 0.4 Interest rate swap 29.1 — Assets held for sale — 43.1 Other assets 38.0 2.1 Inventory 11.2 0.3 Accounts payable (109.2) (10.6) Deferred revenue (25.6) (3.0) Environmental remediation liabilities (92.4) (14.4) Closure and post-closure liabilities (88.9) (32.2) Operating right-of-use lease liabilities (55.8) (0.4) Deferred income tax liabilities (151.0) — Other liabilities (49.5) (11.3) Fair value of tangible assets acquired and liabilities assumed 1,011.0 130.9 Excess purchase price to be allocated $ 1,531.3 $ 476.5 Excess purchase price allocated as follows: Other intangible assets $ 162.9 $ 37.8 Goodwill 1,368.4 438.7 Total allocated $ 1,531.3 $ 476.5 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the activity and balances in goodwill accounts by reporting segment | A summary of the activity and balances in goodwill accounts by reporting segment follows: Balance as of December 31, 2021 Acquisitions Divestitures Adjustments to Acquisitions Balance as of June 30, 2022 Group 1 $ 6,549.7 $ 31.1 $ — $ (2.5) $ 6,578.3 Group 2 5,994.2 203.9 — 6.7 6,204.8 Corporate entities and other 282.1 1,133.4 — (32.3) 1,383.2 Total $ 12,826.0 $ 1,368.4 $ — $ (28.1) $ 14,166.3 |
Summary of the activity and balances by intangible asset type | A summary of the activity and balances by intangible asset type follows: Gross Intangible Assets Accumulated Amortization Balance as of December 31, 2021 Acquisitions Adjustments and Other Balance as of June 30, 2022 Balance as of December 31, 2021 Additions Charged to Expense Adjustments and Other Balance as of June 30, 2022 Other Intangible Assets, Net as of June 30, 2022 Customer relationships $ 898.4 $ 148.6 $ — $ 1,047.0 $ (666.8) $ (19.8) $ 0.2 $ (686.4) $ 360.6 Non-compete agreements 60.4 4.1 — 64.5 (44.6) (3.0) — (47.6) 16.9 Other intangible assets 58.0 10.2 — 68.2 (45.9) (1.1) — (47.0) 21.2 Total $ 1,016.8 $ 162.9 $ — $ 1,179.7 $ (757.3) $ (23.9) $ 0.2 $ (781.0) $ 398.7 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of prepaid expenses and other current assets | A summary of prepaid expenses and other current assets as of June 30, 2022 and December 31, 2021 follows: 2022 2021 Prepaid expenses $ 101.9 $ 85.3 Inventories 100.2 72.2 Income taxes receivable 91.0 173.8 Reinsurance receivable 30.6 31.0 Other non-trade receivables 28.7 32.2 Prepaid fees for cloud-based hosting arrangements, current 8.8 12.9 Other current assets 5.3 3.0 Total $ 366.5 $ 410.4 |
Summary of other assets | A summary of other assets as of June 30, 2022 and December 31, 2021 follows: 2022 2021 Operating right-of-use lease assets $ 299.5 $ 255.3 Investments 241.3 127.6 Deferred compensation plan 113.5 133.5 Deferred contract costs and sales commissions 79.8 80.6 Reinsurance receivable 79.8 79.5 Derivative and hedging assets 59.5 19.7 Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements 56.1 43.4 Amounts recoverable for capping, closure and post-closure obligations 20.1 19.4 Deferred financing costs 5.3 4.6 Other 35.1 24.0 Total $ 990.0 $ 787.6 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other accrued liabilities | A summary of other accrued liabilities as of June 30, 2022 and December 31, 2021 follows: 2022 2021 Accrued payroll and benefits $ 267.2 $ 295.0 Insurance reserves, current 191.5 193.5 Accrued fees and taxes 166.4 143.7 Accrued dividends 145.3 145.9 Operating right-of-use lease liabilities, current 56.0 38.2 Ceded insurance reserves, current 30.6 31.0 Accrued professional fees and legal settlement reserves 11.0 8.4 Other 93.3 73.8 Total $ 961.3 $ 929.5 |
Summary of other long-term liabilities | A summary of other long-term liabilities as of June 30, 2022 and December 31, 2021 follows: 2022 2021 Operating right-of-use lease liabilities $ 270.4 $ 239.0 Deferred compensation plan liability 103.0 119.4 Ceded insurance reserves 79.8 79.5 Derivative and hedging liabilities 66.8 50.7 Contingent purchase price and acquisition holdbacks 63.5 64.4 Withdrawal liability - multiemployer pension funds 23.5 24.5 Legal settlement reserves 3.3 3.1 Other 54.9 61.8 Total $ 665.2 $ 642.4 |
Landfill and Environmental Co_2
Landfill and Environmental Costs (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of accrued landfill and environmental costs | A summary of accrued landfill and environmental liabilities as of June 30, 2022 and December 31, 2021 follows: 2022 2021 Landfill final capping, closure and post-closure liabilities $ 1,657.2 $ 1,507.3 Environmental remediation 536.9 454.9 Total accrued landfill and environmental costs 2,194.1 1,962.2 Less: current portion (121.3) (124.5) Long-term portion $ 2,072.8 $ 1,837.7 |
Schedule of final capping, closure and post-closure costs | The following table summarizes the activity in our asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure, for the six months ended June 30, 2022 and 2021: 2022 2021 Asset retirement obligation liabilities, beginning of year $ 1,507.3 $ 1,346.4 Non-cash additions 27.9 23.0 Acquisitions, net of divestitures and other adjustments 88.2 32.6 Asset retirement obligation adjustments 8.0 9.2 Payments (18.0) (26.8) Accretion expense 44.1 41.1 Foreign currency translation (0.3) — Asset retirement obligation liabilities, end of period 1,657.2 1,425.5 Less: current portion (65.8) (61.0) Long-term portion $ 1,591.4 $ 1,364.5 |
Summary of activity in environmental remediation liabilities | The following table summarizes the activity in our environmental remediation liabilities for the six months ended June 30, 2022 and 2021: 2022 2021 Environmental remediation liabilities, beginning of year $ 454.9 $ 462.8 Net adjustments charged to expense — 4.8 Payments (21.1) (21.7) Accretion expense (non-cash interest expense) 8.6 8.5 Acquisitions, net of divestitures and other adjustments 94.5 14.4 Environmental remediation liabilities, end of period 536.9 468.8 Less: current portion (55.5) (56.6) Long-term portion $ 481.4 $ 412.2 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Carrying value of notes payable, capital leases and long-term debt | The carrying value of our credit facilities, finance leases and long-term debt as of June 30, 2022 and December 31, 2021 is listed in the following table, and is adjusted for the fair value of interest rate swaps, unamortized discounts, deferred issuance costs and the unamortized portion of adjustments to fair value recorded in purchase accounting. Original issue discounts, deferred issuance costs, and adjustments to fair value recorded in purchase accounting are amortized to interest expense over the term of the applicable instrument using the effective interest method. June 30, 2022 December 31, 2021 Maturity Interest Rate Principal Adjustments Carrying Value Principal Adjustments Carrying Value Credit facilities: Uncommitted Credit Facility Variable $ 137.5 $ — $ 137.5 $ — $ — $ — $3.0 billion - August 2026 Variable 714.4 — 714.4 24.3 — 24.3 Term Loan Variable 1,000.0 — 1,000.0 — — — Commercial Paper Variable 500.0 (0.4) 499.6 — — — Senior notes: May 2023 4.750 300.0 (4.0) 296.0 300.0 (0.1) 299.9 August 2024 2.500 900.0 (4.0) 896.0 900.0 (4.8) 895.2 March 2025 3.200 500.0 (1.9) 498.1 500.0 (2.2) 497.8 November 2025 0.875 350.0 (2.3) 347.7 350.0 (2.6) 347.4 July 2026 2.900 500.0 (2.5) 497.5 500.0 (2.8) 497.2 November 2027 3.375 650.0 (3.4) 646.6 650.0 (3.8) 646.2 May 2028 3.950 800.0 (11.6) 788.4 800.0 (12.4) 787.6 March 2030 2.300 600.0 (5.6) 594.4 600.0 (5.9) 594.1 February 2031 1.450 650.0 (7.5) 642.5 650.0 (7.9) 642.1 February 2032 1.750 750.0 (6.3) 743.7 750.0 (6.6) 743.4 March 2033 2.375 700.0 (7.4) 692.6 700.0 (7.6) 692.4 March 2035 6.086 181.9 (12.5) 169.4 181.9 (12.8) 169.1 March 2040 6.200 399.9 (3.5) 396.5 399.9 (3.6) 396.3 May 2041 5.700 385.7 (4.9) 380.8 385.7 (5.0) 380.7 March 2050 3.050 400.0 (7.0) 393.0 400.0 (7.1) 392.9 Debentures: September 2035 7.400 148.1 (30.6) 117.5 148.0 (31.1) 116.9 Tax-exempt: 2023 - 2051 0.300 - 2.600 1,189.1 (7.4) 1,181.8 1,189.1 (7.6) 1,181.5 Finance leases: 2022 - 2063 0.806 - 9.750 269.3 — 269.3 249.4 — 249.4 Total Debt $ 12,025.9 $ (122.6) 11,903.3 $ 9,678.3 $ (123.9) 9,554.4 Less: current portion (313.8) (8.2) Long-term portion $ 11,589.5 $ 9,546.2 |
Stock Repurchases, Dividends _2
Stock Repurchases, Dividends and Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stock repurchase activity | Stock repurchase activity during the three and six months ended June 30, 2022 and 2021 follows (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Number of shares repurchased — 0.3 1.6 0.4 Amount paid $ — $ 27.4 $ 203.5 $ 40.1 Weighted average cost per share $ — $ 108.68 $ 124.02 $ 101.84 |
Earnings per share | Earnings per share for the three and six months ended June 30, 2022 and 2021 are calculated as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Basic earnings per share: Net income attributable to Republic Services, Inc. $ 371,888 $ 331,065 $ 723,912 $ 627,009 Weighted average common shares outstanding 316,473 319,526 316,538 319,487 Basic earnings per share $ 1.18 $ 1.04 $ 2.29 $ 1.96 Diluted earnings per share: Net income attributable to Republic Services, Inc. $ 371,888 $ 331,065 $ 723,912 $ 627,009 Weighted average common shares outstanding 316,473 319,526 316,538 319,487 Effect of dilutive securities: Unvested RSU awards 126 232 170 187 Unvested PSU awards 361 283 372 263 Weighted average common and common equivalent shares outstanding 316,960 320,041 317,079 319,937 Diluted earnings per share $ 1.17 $ 1.03 $ 2.28 $ 1.96 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Summary of changes in accumulated other comprehensive income by component | A summary of changes in accumulated other comprehensive loss, net of tax, by component, for the six months ended June 30, 2022 follows: Cash Flow Hedges Defined Benefit Pension Items Foreign Currency Translation Total Balance as of December 31, 2021 $ (25.8) $ 11.2 $ — $ (14.6) Other comprehensive income (loss) before reclassifications (1.1) — 0.1 (1.0) Amounts reclassified from accumulated other comprehensive income 2.2 — — 2.2 Net current period other comprehensive income 1.1 — 0.1 1.2 Balance as of June 30, 2022 $ (24.7) $ 11.2 $ 0.1 $ (13.4) |
Schedule of reclassifications out of accumulated other comprehensive income | A summary of reclassifications out of accumulated other comprehensive loss for the three and six months ended June 30, 2022 and 2021 follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive (Loss) Income Amount Reclassified from Accumulated Other Comprehensive (Loss) Income Affected Line Item in the Statement where Net Income is Presented Loss on cash flow hedges: Terminated interest rate locks $ (1.5) $ (1.6) $ (3.0) $ (3.1) Interest expense 2022 Interest Rate Swap — — — — Interest expense Total before tax (1.5) (1.6) (3.0) (3.1) Tax benefit 0.4 0.4 0.8 0.8 Net of tax $ (1.1) $ (1.2) $ (2.2) $ (2.3) Pension gains: Pension settlement $ — $ 0.9 $ — $ 0.9 Other income Tax expense — (0.2) — (0.2) Net of tax — 0.7 — 0.7 Total loss reclassified into earnings, net of tax $ (1.1) $ (0.5) $ (2.2) $ (1.6) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value hedging instruments | The effect of our hedging relationships and derivative instruments on the consolidated statements of income for the three and six months ended June 30, 2022 and 2021 follows (in millions): Classification and amount of gain (loss) recognized in income on hedging relationships and derivative instruments Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Interest Expense Interest Expense Interest Expense Interest Expense Total amount of expense line items presented in the consolidated statements of income in which the effects of hedging relationships and derivative instruments are recorded $ (94.0) $ (78.4) $ (177.5) $ (156.7) The effects of fair value and cash flow hedging relationships in Subtopic 815-20: Gain on fair value hedging relationships: Interest rate swaps: Net swap settlements $ 1.4 $ 2.0 $ 3.2 $ 3.9 Net periodic (loss) earnings $ (0.6) $ 0.1 $ (1.2) $ 0.2 Loss on cash flow hedging relationships: Interest rate swap locks: Amount of loss reclassified from accumulated other comprehensive loss into income, net of tax $ (1.1) $ (1.2) $ (2.2) $ (2.3) The effects of derivative instruments not in Subtopic 815-20: Gain (loss) on free-standing derivative instruments: Interest rate swaps: Loss on change in fair value of free-standing derivative instruments $ (1.6) $ (0.8) $ (4.3) $ (2.0) Interest rate contract: Net gain (loss) on change in fair value of free-standing derivative instruments $ 0.4 $ (0.6) $ 1.7 $ (0.2) |
Assets and liabilities measured at fair value on a recurring basis | As of June 30, 2022 and December 31, 2021, our assets and liabilities that are measured at fair value on a recurring basis include the following: June 30, 2022 Fair Value Carrying Amount Total Quoted Significant Significant Assets: Money market mutual funds $ 30.5 $ 30.5 $ 30.5 $ — $ — Bonds - restricted cash and marketable securities and other assets 57.4 57.4 — 57.4 — Derivative and hedging assets - other assets 59.5 59.5 — 59.5 — Total assets $ 147.4 $ 147.4 $ 30.5 $ 116.9 $ — Liabilities: Derivative and hedging liabilities - other long-term liabilities $ 66.8 $ 66.8 $ — $ 66.8 $ — Contingent consideration - other accrued liabilities and other long-term liabilities 67.9 67.9 — — 67.9 Total liabilities $ 134.7 $ 134.7 $ — $ 66.8 $ 67.9 December 31, 2021 Fair Value Carrying Amount Total Quoted Significant Significant Assets: Money market mutual funds $ 35.2 $ 35.2 $ 35.2 $ — $ — Bonds - restricted cash and marketable securities and other assets 63.1 63.1 — 63.1 — Derivative and hedging assets - other assets 19.7 19.7 — 19.7 — Total assets $ 118.0 $ 118.0 $ 35.2 $ 82.8 $ — Liabilities: Derivative and hedging liabilities - other long-term liabilities $ 50.7 $ 50.7 $ — $ 50.7 $ — Contingent consideration - other accrued liabilities and other long-term liabilities 68.8 68.8 — — 68.8 Total liabilities $ 119.5 $ 119.5 $ — $ 50.7 $ 68.8 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summarized financial information concerning reportable segments | Summarized financial information concerning our reportable segments for the three and six months ended June 30, 2022 and 2021 follows: Gross Revenue Intercompany Revenue Net Revenue Depreciation, Amortization, Depletion and Accretion Operating Income (Loss) Capital Expenditures Total Assets Three Months Ended June 30, 2022 Group 1 $ 1,827.5 $ (279.0) $ 1,548.4 $ 145.9 $ 415.1 $ 123.3 $ 12,211.8 Group 2 1,768.8 (241.9) 1,526.9 148.7 328.4 111.8 10,225.8 Corporate entities and other 361.0 (22.7) 338.3 65.4 (153.9) 78.1 5,775.3 Total $ 3,957.3 $ (543.6) $ 3,413.6 $ 360.0 $ 589.6 $ 313.2 $ 28,212.9 Three Months Ended June 30, 2021 Group 1 $ 1,668.3 $ (275.0) $ 1,393.3 $ 138.7 $ 379.8 $ 149.3 $ 11,946.7 Group 2 1,576.9 (235.0) 1,341.9 138.0 283.6 108.8 9,649.3 Corporate entities and other 88.3 (11.2) 77.1 47.0 (145.5) 19.5 2,326.1 Total $ 3,333.5 $ (521.2) $ 2,812.3 $ 323.7 $ 517.9 $ 277.6 $ 23,922.1 Gross Revenue Intercompany Revenue Net Revenue Depreciation, Amortization, Depletion and Accretion Operating Income (Loss) Capital Expenditures Total Assets Six Months Ended June 30, 2022 Group 1 $ 3,529.7 $ (540.8) $ 2,988.8 $ 289.6 $ 787.9 $ 233.8 $ 12,211.8 Group 2 3,367.3 (459.2) 2,908.1 290.9 647.8 203.1 10,225.8 Corporate entities and other 526.4 (39.6) 486.8 111.5 (285.5) 210.3 5,775.3 Total $ 7,423.4 $ (1,039.6) $ 6,383.7 $ 692.0 $ 1,150.2 $ 647.2 $ 28,212.9 Six Months Ended June 30, 2021 Group 1 $ 3,215.9 $ (524.0) $ 2,691.9 $ 270.8 $ 731.3 $ 274.1 $ 11,946.7 Group 2 3,000.7 (436.8) 2,563.9 266.8 545.4 191.4 9,649.3 Corporate entities and other 174.0 (21.6) 152.4 88.7 (266.4) 143.1 2,326.1 Total $ 6,390.6 $ (982.4) $ 5,408.2 $ 626.3 $ 1,010.3 $ 608.6 $ 23,922.1 |
Revenue and Credit Losses (Tabl
Revenue and Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table disaggregates our revenue by service line for the three and six months ended June 30, 2022 and 2021 (in millions of dollars and as a percentage of revenue): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Collection: Residential $ 654.1 19.2 % $ 611.6 21.7 % $ 1,282.0 20.1 % $ 1,204.7 22.2 % Small-container 975.6 28.6 843.2 30.0 1,891.2 29.6 1,653.4 30.5 Large-container 687.4 20.1 594.6 21.1 1,308.5 20.5 1,129.0 20.9 Other 13.3 0.4 13.0 0.5 25.7 0.4 25.4 0.5 Total collection 2,330.4 68.3 2,062.4 73.3 4,507.4 70.6 4,012.5 74.1 Transfer 407.8 383.7 770.4 715.0 Less: intercompany (215.9) (208.1) (413.7) (393.2) Transfer, net 191.9 5.6 175.6 6.2 356.7 5.6 321.8 6.0 Landfill 699.0 654.2 1,316.1 1,219.3 Less: intercompany (292.9) (283.2) (560.5) (532.5) Landfill, net 406.1 11.9 371.0 13.2 755.6 11.8 686.8 12.7 Environmental solutions 308.0 37.6 416.9 76.6 Less: intercompany (13.7) (3.5) (23.3) (7.6) Environmental solutions, net 294.3 8.6 34.1 1.2 393.6 6.2 69.0 1.3 Other: Recycling processing and commodity sales 113.6 3.3 103.0 3.7 213.3 3.3 190.6 3.5 Other non-core 77.4 2.3 66.2 2.4 157.0 2.5 127.5 2.4 Total other 191.0 5.6 169.2 6.1 370.3 5.8 318.1 5.9 Total revenue $ 3,413.6 100.0 % $ 2,812.3 100.0 % $ 6,383.7 100.0 % $ 5,408.2 100.0 % |
Schedule of activity in allowance for doubtful accounts | The following table reflects the activity in our allowance for doubtful accounts for the six months ended June 30, 2022 and 2021: 2022 2021 Balance at beginning of year $ 38.5 $ 34.7 Additions charged to expense 17.2 11.4 Accounts written-off (5.1) (7.0) Balance at end of period $ 50.6 $ 39.1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of cash equivalents, restricted cash and marketable securities | Beginning-of-period and end-of-period cash, cash equivalents, restricted cash and restricted cash equivalents as presented in the statement of cash flows is reconciled as follows: June 30, 2022 December 31, 2021 June 30, 2021 December 31, 2020 Cash and cash equivalents $ 119.4 $ 29.0 $ 34.0 $ 38.2 Restricted cash and marketable securities 121.5 139.0 151.0 149.1 Less: restricted marketable securities (57.2) (62.4) (73.0) (73.1) Cash, cash equivalents, restricted cash and restricted cash equivalents $ 183.7 $ 105.6 $ 112.0 $ 114.2 |
Summary of restricted cash and marketable securities | The following table summarizes our restricted cash and marketable securities: June 30, 2022 December 31, 2021 Financing proceeds $ 2.0 $ 12.4 Capping, closure and post-closure obligations 38.3 42.4 Insurance 81.2 84.2 Total restricted cash and marketable securities $ 121.5 $ 139.0 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 3 |
Business Acquisitions, Invest_3
Business Acquisitions, Investments and Restructuring Charges - Acquisitions (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Purchase price: | |||
Cash used in acquisitions, net of cash acquired of $64.6 and $3.0, respectively | $ 2,655 | $ 576.6 | |
Excess purchase price allocated as follows: | |||
Goodwill | 14,166.3 | $ 12,826 | |
Series of Individually Immaterial Business Acquisitions | |||
Purchase price: | |||
Cash acquired | 64.6 | 3 | |
Cash used in acquisitions, net of cash acquired of $64.6 and $3.0, respectively | 2,516.6 | 561.7 | |
Holdbacks | 10.1 | 5.5 | |
Fair value, future minimum finance lease payments | 15.6 | 40.2 | |
Total | 2,542.3 | 607.4 | |
Allocated as follows: | |||
Restricted cash | 0 | 7.2 | |
Accounts receivable | 250.5 | 16.7 | |
Prepaid expenses | 15.5 | 0 | |
Landfill development costs | 495.7 | 65.9 | |
Property and equipment | 688 | 67.1 | |
Operating right-of-use lease assets | 55.4 | 0.4 | |
Interest rate swap | 29.1 | 0 | |
Assets held for sale | 0 | 43.1 | |
Other assets | 38 | 2.1 | |
Inventory | 11.2 | 0.3 | |
Accounts payable | (109.2) | (10.6) | |
Deferred revenue | (25.6) | (3) | |
Environmental remediation liabilities | (92.4) | (14.4) | |
Closure and post-closure liabilities | (88.9) | (32.2) | |
Operating right-of-use lease liabilities | (55.8) | (0.4) | |
Deferred income tax liabilities | (151) | 0 | |
Other liabilities | (49.5) | (11.3) | |
Fair value of tangible assets acquired and liabilities assumed | 1,011 | 130.9 | |
Excess purchase price to be allocated | 1,531.3 | 476.5 | |
Excess purchase price allocated as follows: | |||
Other intangible assets | 162.9 | 37.8 | |
Goodwill | 1,368.4 | 438.7 | |
Total allocated | $ 1,531.3 | $ 476.5 |
Business Acquisitions, Invest_4
Business Acquisitions, Investments and Restructuring Charges - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||||
May 02, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jul. 31, 2022 USD ($) project | Apr. 29, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||||
Loss from unconsolidated equity method investments | $ 13,600,000 | $ 12,400,000 | $ 17,400,000 | $ 28,900,000 | |||
Restructuring charges | 5,900,000 | 3,800,000 | 11,900,000 | 6,600,000 | |||
Restructuring expenditures | 8,300,000 | 8,600,000 | |||||
Investment Tax Credit Carryforward | |||||||
Business Acquisition [Line Items] | |||||||
Increase (decrease) in income taxes | (24,000,000) | (20,000,000) | (25,000,000) | (20,000,000) | |||
Other Noncurrent Assets | |||||||
Business Acquisition [Line Items] | |||||||
Capital contributions to noncontrolling equity interest | 121,000,000 | 22,700,000 | |||||
US Ecology | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, consideration transferred | $ 2,200,000,000 | ||||||
Acquisition integration and deal costs | 51,900,000 | 56,600,000 | |||||
US Ecology | Revolving Credit Facility | |||||||
Business Acquisition [Line Items] | |||||||
Principal face amount of debt issued | 3,000,000,000 | ||||||
US Ecology | Term Loan Facility | |||||||
Business Acquisition [Line Items] | |||||||
Principal face amount of debt issued | $ 1,000,000,000 | $ 1,000,000,000 | |||||
Joint Venture with Landfill Gas to Energy Developer | Subsequent Event | |||||||
Business Acquisition [Line Items] | |||||||
Equity method investments | $ 90,000,000 | ||||||
Number of renewable natural gas projects | project | 39 | ||||||
Joint Venture with Landfill Gas to Energy Developer | Subsequent Event | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Project milestone period | 4 years | ||||||
Joint Venture with Landfill Gas to Energy Developer | Subsequent Event | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Project milestone period | 5 years | ||||||
Certain Limited Liability Companies | |||||||
Business Acquisition [Line Items] | |||||||
Loss from unconsolidated equity method investments | $ (11,900,000) | $ 12,000,000 | $ (12,200,000) | $ 25,700,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill [Roll forward] | |
Beginning balance | $ 12,826 |
Acquisitions | 1,368.4 |
Divestitures | 0 |
Adjustments to Acquisitions | (28.1) |
Ending balance | 14,166.3 |
Group 1 | |
Goodwill [Roll forward] | |
Beginning balance | 6,549.7 |
Acquisitions | 31.1 |
Divestitures | 0 |
Adjustments to Acquisitions | (2.5) |
Ending balance | 6,578.3 |
Group 2 | |
Goodwill [Roll forward] | |
Beginning balance | 5,994.2 |
Acquisitions | 203.9 |
Divestitures | 0 |
Adjustments to Acquisitions | 6.7 |
Ending balance | 6,204.8 |
Corporate entities and other | |
Goodwill [Roll forward] | |
Beginning balance | 282.1 |
Acquisitions | 1,133.4 |
Divestitures | 0 |
Adjustments to Acquisitions | (32.3) |
Ending balance | $ 1,383.2 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period for other intangible assets | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization period for other intangible assets | 15 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Other Intangible Assets, Net (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Gross Intangible Assets | ||
Beginning balance | $ 1,016.8 | |
Acquisitions | 162.9 | |
Adjustments and Other | 0 | |
Ending balance | 1,179.7 | |
Accumulated Amortization | ||
Beginning balance | (757.3) | |
Additions Charged to Expense | (23.9) | |
Adjustments and Other | 0.2 | |
Ending balance | (781) | |
Other Intangible Assets, Net | 398.7 | $ 259.5 |
Customer relationships | ||
Gross Intangible Assets | ||
Beginning balance | 898.4 | |
Acquisitions | 148.6 | |
Adjustments and Other | 0 | |
Ending balance | 1,047 | |
Accumulated Amortization | ||
Beginning balance | (666.8) | |
Additions Charged to Expense | (19.8) | |
Adjustments and Other | 0.2 | |
Ending balance | (686.4) | |
Other Intangible Assets, Net | 360.6 | |
Non-compete agreements | ||
Gross Intangible Assets | ||
Beginning balance | 60.4 | |
Acquisitions | 4.1 | |
Adjustments and Other | 0 | |
Ending balance | 64.5 | |
Accumulated Amortization | ||
Beginning balance | (44.6) | |
Additions Charged to Expense | (3) | |
Adjustments and Other | 0 | |
Ending balance | (47.6) | |
Other Intangible Assets, Net | 16.9 | |
Other intangible assets | ||
Gross Intangible Assets | ||
Beginning balance | 58 | |
Acquisitions | 10.2 | |
Adjustments and Other | 0 | |
Ending balance | 68.2 | |
Accumulated Amortization | ||
Beginning balance | (45.9) | |
Additions Charged to Expense | (1.1) | |
Adjustments and Other | 0 | |
Ending balance | (47) | |
Other Intangible Assets, Net | $ 21.2 |
Other Assets - Prepaid Expenses
Other Assets - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Prepaid Expenses and Other Current Assets | ||
Prepaid expenses | $ 101.9 | $ 85.3 |
Inventories | 100.2 | 72.2 |
Income taxes receivable | 91 | 173.8 |
Reinsurance receivable | 30.6 | 31 |
Other non-trade receivables | 28.7 | 32.2 |
Prepaid fees for cloud-based hosting arrangements, current | 8.8 | 12.9 |
Other current assets | 5.3 | 3 |
Total | $ 366.5 | $ 410.4 |
Other Assets - Other Assets (De
Other Assets - Other Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Other Assets | ||
Operating right-of-use lease assets | $ 299.5 | $ 255.3 |
Investments | 241.3 | 127.6 |
Deferred compensation plan | 113.5 | 133.5 |
Deferred contract costs and sales commissions | 79.8 | 80.6 |
Reinsurance receivable | 79.8 | 79.5 |
Derivative and hedging assets | 19.7 | |
Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements | 56.1 | 43.4 |
Amounts recoverable for capping, closure and post-closure obligations | 20.1 | 19.4 |
Deferred financing costs | 5.3 | 4.6 |
Other | 35.1 | 24 |
Total | $ 990 | $ 787.6 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Other Accrued Liabilities | ||
Accrued payroll and benefits | $ 267.2 | $ 295 |
Insurance reserves, current | 191.5 | 193.5 |
Accrued fees and taxes | 166.4 | 143.7 |
Accrued dividends | 145.3 | 145.9 |
Operating right-of-use lease liabilities, current | 56 | 38.2 |
Ceded insurance reserves, current | 30.6 | 31 |
Accrued professional fees and legal settlement reserves | 11 | 8.4 |
Other | 93.3 | 73.8 |
Total | 961.3 | 929.5 |
Other Long-Term Liabilities | ||
Operating right-of-use lease liabilities | 270.4 | 239 |
Deferred compensation plan liability | 103 | 119.4 |
Ceded insurance reserves | 79.8 | 79.5 |
Derivative and hedging liabilities | 50.7 | |
Contingent purchase price and acquisition holdbacks | 63.5 | 64.4 |
Withdrawal liability - multiemployer pension funds | 23.5 | 24.5 |
Legal settlement reserves | 3.3 | 3.1 |
Other | 54.9 | 61.8 |
Total | $ 665.2 | $ 642.4 |
Landfill and Environmental Co_3
Landfill and Environmental Costs - Narrative (Details) $ in Millions, cubicYard in Billions | 6 Months Ended | ||||
Sep. 27, 2018 USD ($) | Jun. 30, 2022 USD ($) cubicYard landfill | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Environmental Exit Cost [Line Items] | |||||
Number of active solid waste landfills | landfill | 207 | ||||
Total available disposal capacity (in cubic yards) | cubicYard | 5.1 | ||||
Number of closed landfills | landfill | 127 | ||||
Amount of aggregate potential remediation liability | $ 375 | ||||
Payments for management and monitoring of remediation area | 21.1 | $ 21.7 | |||
Remediation liability | 536.9 | $ 468.8 | $ 454.9 | $ 462.8 | |
Bridgeton Landfill | |||||
Environmental Exit Cost [Line Items] | |||||
Payments for management and monitoring of remediation area | 6.8 | ||||
Remediation liability | 96 | ||||
Remediation liability expected to be paid during the remainder of the year | 9 | ||||
Bridgeton Landfill | Maximum | |||||
Environmental Exit Cost [Line Items] | |||||
Range of loss for remediation costs | $ 140 | ||||
West Lake Landfill Superfund Site | |||||
Environmental Exit Cost [Line Items] | |||||
Environmental exit costs, anticipated cost | $ 229 | ||||
West Lake Landfill Superfund Site | Minimum | |||||
Environmental Exit Cost [Line Items] | |||||
Environmental exit costs, time period allotted for completion | 4 years | ||||
West Lake Landfill Superfund Site | Maximum | |||||
Environmental Exit Cost [Line Items] | |||||
Environmental exit costs, time period allotted for completion | 5 years |
Landfill and Environmental Co_4
Landfill and Environmental Costs - Accrued Landfill and Environmental Costs (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Environmental Remediation Obligations [Abstract] | ||||
Total accrued landfill and environmental costs | $ 2,194.1 | $ 1,962.2 | ||
Long-term portion | 2,072.8 | 1,837.7 | ||
Asset Retirement Obligation | 1,657.2 | 1,507.3 | $ 1,425.5 | $ 1,346.4 |
Less: current portion | (121.3) | (124.5) | ||
Environmental remediation | $ 536.9 | $ 454.9 | $ 468.8 | $ 462.8 |
Landfill and Environmental Co_5
Landfill and Environmental Costs - Final Capping, Closure and Post-Closure Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Activity in asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure | ||||
Asset retirement obligation liabilities, beginning of year | $ 1,507.3 | $ 1,346.4 | ||
Non-cash additions | 27.9 | 23 | ||
Acquisitions, net of divestitures and other adjustments | 88.2 | 32.6 | ||
Asset retirement obligation adjustments | 8 | 9.2 | ||
Payments | (18) | (26.8) | ||
Accretion expense | $ 22.4 | $ 20.7 | 44.1 | 41.1 |
Foreign currency translation | (0.3) | 0 | ||
Asset retirement obligation liabilities, end of period | 1,657.2 | 1,425.5 | 1,657.2 | 1,425.5 |
Long-term portion | 1,591.4 | 1,364.5 | 1,591.4 | 1,364.5 |
Less: current portion | $ (65.8) | $ (61) | $ (65.8) | $ (61) |
Landfill and Environmental Co_6
Landfill and Environmental Costs - Environmental Remediation Liability (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Activity in environmental remediation liabilities | ||
Environmental remediation liabilities, beginning of year | $ 454.9 | $ 462.8 |
Accretion expense (non-cash interest expense) | 8.6 | 8.5 |
Environmental remediation liabilities, end of period | 536.9 | 468.8 |
Long-term portion | 481.4 | 412.2 |
Net adjustments charged to expense | 0 | 4.8 |
Accrual for Environmental Loss Contingencies, Payments | (21.1) | (21.7) |
Acquisitions, net of divestitures and other adjustments | 94.5 | 14.4 |
Less: current portion | $ (55.5) | $ (56.6) |
Debt - Carrying Values of Debt
Debt - Carrying Values of Debt Instruments (Details) - USD ($) | Jun. 30, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2021 | Aug. 31, 2021 | Mar. 06, 2020 |
Debt Instrument [Line Items] | ||||||
Finance leases | $ 269,300,000 | |||||
Long-term debt, gross and lease obligation | 12,025,900,000 | $ 9,678,300,000 | ||||
Adjustments | (122,600,000) | (123,900,000) | ||||
Total Debt | 11,903,300,000 | 9,554,400,000 | ||||
Less: current portion | (313,800,000) | (8,200,000) | ||||
Long-term portion | 11,589,500,000 | 9,546,200,000 | ||||
Credit facilities: Uncommitted Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 200,000,000 | 135,000,000 | ||||
Principal | 137,500,000 | 0 | ||||
Adjustments | 0 | 0 | ||||
Carrying Value | 137,500,000 | 0 | ||||
Credit facilities: August 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 714,400,000 | 24,300,000 | ||||
Adjustments | 0 | 0 | ||||
Carrying Value | 714,400,000 | 24,300,000 | ||||
Credit facilities: August 2026 | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 3,000,000,000 | |||||
Credit facilities: Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 0.832% | |||||
Principal | 1,000,000,000 | 0 | ||||
Adjustments | 0 | 0 | ||||
Carrying Value | 1,000,000,000 | 0 | ||||
Credit facilities: Commercial Paper Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 500,000,000 | 0 | ||||
Adjustments | (400,000) | 0 | ||||
Carrying Value | $ 499,600,000 | 0 | ||||
Senior notes: May 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 4.75% | |||||
Principal | $ 300,000,000 | 300,000,000 | ||||
Adjustments | (4,000,000) | (100,000) | ||||
Carrying Value | $ 296,000,000 | 299,900,000 | ||||
Senior notes: August 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 2.50% | |||||
Principal | $ 900,000,000 | 900,000,000 | ||||
Adjustments | (4,000,000) | (4,800,000) | ||||
Carrying Value | $ 896,000,000 | 895,200,000 | ||||
Senior notes: March 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 3.20% | |||||
Principal | $ 500,000,000 | 500,000,000 | ||||
Adjustments | (1,900,000) | (2,200,000) | ||||
Carrying Value | $ 498,100,000 | 497,800,000 | ||||
Senior notes: November 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 0.875% | |||||
Principal | $ 350,000,000 | 350,000,000 | ||||
Adjustments | (2,300,000) | (2,600,000) | ||||
Carrying Value | $ 347,700,000 | 347,400,000 | ||||
Senior notes: July 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 2.90% | |||||
Principal | $ 500,000,000 | 500,000,000 | ||||
Adjustments | (2,500,000) | (2,800,000) | ||||
Carrying Value | $ 497,500,000 | 497,200,000 | ||||
Senior notes: November 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 3.375% | |||||
Principal | $ 650,000,000 | 650,000,000 | ||||
Adjustments | (3,400,000) | (3,800,000) | ||||
Carrying Value | $ 646,600,000 | 646,200,000 | ||||
Senior notes: May 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 3.95% | |||||
Principal | $ 800,000,000 | 800,000,000 | ||||
Adjustments | (11,600,000) | (12,400,000) | ||||
Carrying Value | $ 788,400,000 | 787,600,000 | ||||
Senior notes: March 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 2.30% | |||||
Principal | $ 600,000,000 | 600,000,000 | ||||
Adjustments | (5,600,000) | (5,900,000) | ||||
Carrying Value | $ 594,400,000 | 594,100,000 | ||||
Senior notes: February 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 1.45% | |||||
Principal | $ 650,000,000 | 650,000,000 | ||||
Adjustments | (7,500,000) | (7,900,000) | ||||
Carrying Value | $ 642,500,000 | 642,100,000 | ||||
Senior notes: February 2032 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 1.75% | |||||
Principal | $ 750,000,000 | 750,000,000 | ||||
Adjustments | (6,300,000) | (6,600,000) | ||||
Carrying Value | $ 743,700,000 | 743,400,000 | ||||
Senior Notes Due March 2033 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 2.375% | |||||
Principal | $ 700,000,000 | 700,000,000 | $ 700,000,000 | |||
Adjustments | (7,400,000) | (7,600,000) | ||||
Carrying Value | $ 692,600,000 | 692,400,000 | ||||
Senior notes: March 2035 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 6.086% | |||||
Principal | $ 181,900,000 | 181,900,000 | ||||
Adjustments | (12,500,000) | (12,800,000) | ||||
Carrying Value | $ 169,400,000 | 169,100,000 | ||||
Senior notes: March 2040 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 6.20% | |||||
Principal | $ 399,900,000 | 399,900,000 | ||||
Adjustments | (3,500,000) | (3,600,000) | ||||
Carrying Value | $ 396,500,000 | 396,300,000 | ||||
Senior notes: May 2041 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 5.70% | |||||
Principal | $ 385,700,000 | 385,700,000 | ||||
Adjustments | (4,900,000) | (5,000,000) | ||||
Carrying Value | $ 380,800,000 | 380,700,000 | ||||
Senior notes: March 2050 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 3.05% | |||||
Principal | $ 400,000,000 | 400,000,000 | ||||
Adjustments | (7,000,000) | (7,100,000) | ||||
Carrying Value | $ 393,000,000 | 392,900,000 | ||||
Debentures: September 2035 | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 7.40% | |||||
Principal | $ 148,100,000 | 148,000,000 | ||||
Adjustments | (30,600,000) | (31,100,000) | ||||
Carrying Value | 117,500,000 | 116,900,000 | ||||
Tax-exempt: 2023 - 2051 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 1,189,100,000 | 1,189,100,000 | ||||
Adjustments | (7,400,000) | (7,600,000) | ||||
Carrying Value | $ 1,181,800,000 | 1,181,500,000 | ||||
Tax-exempt: 2023 - 2051 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 0.30% | |||||
Tax-exempt: 2023 - 2051 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 2.60% | |||||
Finance leases: 2022 - 2063 | ||||||
Debt Instrument [Line Items] | ||||||
Finance leases | $ 269,300,000 | $ 249,400,000 | ||||
Finance leases: 2022 - 2063 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 0.806% | |||||
Finance leases: 2022 - 2063 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 9.75% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2021 USD ($) landfill | Nov. 30, 2020 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | May 02, 2022 USD ($) | Apr. 29, 2022 USD ($) | Jan. 31, 2022 USD ($) | Dec. 31, 2020 USD ($) | Mar. 06, 2020 USD ($) | Feb. 29, 2020 USD ($) | Aug. 31, 2019 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||
Letters of credit utilizing availability under our credit facilities | $ 350,600,000 | $ 350,600,000 | $ 341,900,000 | |||||||||||
Remaining borrowing capacity | 1,435,000,000 | 1,435,000,000 | 2,633,800,000 | |||||||||||
Derivative assets | (19,700,000) | |||||||||||||
Unrealized loss | 1,100,000 | $ 0 | 1,100,000 | $ 0 | ||||||||||
Restricted cash and marketable securities | 121,500,000 | 151,000,000 | 121,500,000 | 151,000,000 | 139,000,000 | $ 149,100,000 | ||||||||
Present value of lease liabilities | 269,300,000 | 269,300,000 | ||||||||||||
2022 Interest Rate Swap | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Derivative, notional amount | 300,000,000 | 300,000,000 | ||||||||||||
Interest rate derivative liability at fair value | 500,000 | 500,000 | ||||||||||||
Interest rate derivative assets at fair value | 4,700,000 | |||||||||||||
Gain (loss) on interest rate swaps | 1,900,000 | 1,000,000 | 5,200,000 | 2,400,000 | ||||||||||
Freestanding Derviatives | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Derivative assets | 400,000 | 400,000 | (3,900,000) | |||||||||||
Freestanding Derviatives | Interest Expense | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Gain (loss) on change in fair value of free standing derivatives | 1,600,000 | 800,000 | 4,300,000 | 2,000,000 | ||||||||||
Net swap settlements | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Gain (loss) on interest rate swaps | 1,400,000 | 2,000,000 | 3,200,000 | 3,900,000 | ||||||||||
Hedged Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Gain (loss) on interest rate swaps | 1,300,000 | 1,100,000 | 4,000,000 | 2,600,000 | ||||||||||
Interest Rate Swap Locks | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Accumulated other comprehensive income (loss) | (23,600,000) | (23,600,000) | (25,800,000) | |||||||||||
Effective portion of interest rate locks | 4,200,000 | |||||||||||||
Extended Interest Rate Swaps | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Terminated derivative, notional amount | $ 550,000,000 | $ 375,000,000 | ||||||||||||
Gain (loss) on change in fair value of free-standing derivative instruments | 21,700,000 | 18,200,000 | 74,800,000 | 28,900,000 | ||||||||||
2019 Extended Interest Rate Swaps | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Derivative liability | 400,000 | 400,000 | 20,900,000 | |||||||||||
2020 Extended Interest Rate Swaps | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Derivative assets | (31,800,000) | (31,800,000) | ||||||||||||
Derivative liability | 29,000,000 | |||||||||||||
2019 Offsetting Interest Rate Swap | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Derivative liability | 9,600,000 | 9,600,000 | ||||||||||||
Offsetting Interest Rate Swap | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Derivative assets | (11,100,000) | |||||||||||||
Derivative liability | 55,900,000 | 55,900,000 | 800,000 | |||||||||||
Gain (loss) on change in fair value of free-standing derivative instruments | 21,300,000 | $ (17,600,000) | (73,100,000) | $ 29,100,000 | ||||||||||
Credit facilities: August 2026 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt | 714,400,000 | 714,400,000 | 24,300,000 | |||||||||||
Principal | 714,400,000 | 714,400,000 | 24,300,000 | |||||||||||
Credit facilities: Commercial Paper Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt | 499,600,000 | 499,600,000 | 0 | |||||||||||
Principal | $ 500,000,000 | $ 500,000,000 | 0 | |||||||||||
Weighted average interest rate | 1.845% | 1.845% | ||||||||||||
Credit facilities: Commercial Paper Facility | Weighted Average | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Weighted average maturity term | 24 days | |||||||||||||
Uncommitted Revolver | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | 135,000,000 | $ 200,000,000 | ||||||||||||
Long-term debt | $ 137,500,000 | $ 137,500,000 | 0 | |||||||||||
Principal | 137,500,000 | 137,500,000 | 0 | |||||||||||
Debentures: May 2021 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 9.25% | 9.25% | ||||||||||||
Repayments of debt | $ 35,300,000 | |||||||||||||
Senior notes: May 2023 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt | 296,000,000 | 296,000,000 | 299,900,000 | |||||||||||
Principal | $ 300,000,000 | $ 300,000,000 | 300,000,000 | |||||||||||
Interest rate | 4.75% | 4.75% | ||||||||||||
Extinguishment of debt, amount | $ 250,000,000 | |||||||||||||
Term Loan Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt | $ 1,000,000,000 | $ 1,000,000,000 | 0 | |||||||||||
Principal | 1,000,000,000 | 1,000,000,000 | 0 | |||||||||||
Interest rate | 0.832% | |||||||||||||
Term Loan Facility | 2022 Interest Rate Swap | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Derivative asset | 27,700,000 | 27,700,000 | ||||||||||||
Unrealized loss | 1,100,000 | |||||||||||||
Term Loan Facility | 2022 Interest Rate Swap | US Ecology | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Derivative, notional amount | $ 500,000,000 | |||||||||||||
Senior notes: March 2030 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt | 594,400,000 | 594,400,000 | 594,100,000 | |||||||||||
Principal | $ 600,000,000 | $ 600,000,000 | 600,000,000 | |||||||||||
Interest rate | 2.30% | 2.30% | ||||||||||||
Senior notes: August 2024 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt | $ 896,000,000 | $ 896,000,000 | 895,200,000 | |||||||||||
Principal | $ 900,000,000 | $ 900,000,000 | 900,000,000 | |||||||||||
Interest rate | 2.50% | 2.50% | ||||||||||||
Tax-exempt: 2023 - 2051 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt | $ 1,181,800,000 | $ 1,181,800,000 | 1,181,500,000 | |||||||||||
Principal | 1,189,100,000 | 1,189,100,000 | 1,189,100,000 | |||||||||||
Principal face amount of debt issued | 205,000,000 | |||||||||||||
Proceeds from issuance of tax-exempt bonds | 2,000,000 | 2,000,000 | 12,400,000 | |||||||||||
Solid Waste Disposal Revenue Bonds | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal face amount of debt issued | 30,000,000 | |||||||||||||
Cost incurred and subsequently reimbursed | 27,700,000 | 17,200,000 | ||||||||||||
Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowings | $ 714,400,000 | $ 714,400,000 | $ 24,300,000 | |||||||||||
Revolving Credit Facility | US Ecology | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal face amount of debt issued | $ 3,000,000,000 | |||||||||||||
Line of Credit | Credit facilities: August 2026 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 3,000,000,000 | |||||||||||||
Line of Credit | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Number of available extensions | landfill | 2 | |||||||||||||
Extension period | 1 year | |||||||||||||
Facility feature, increase limit | $ 1,000,000,000 | |||||||||||||
Basis spread | 0.91% | |||||||||||||
Term Loan Facility | US Ecology | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal face amount of debt issued | $ 1,000,000,000 | $ 1,000,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Tax Credit Carryforward [Line Items] | ||||
Effective tax rate | 22.20% | 22.40% | 23.80% | 24.10% |
Cash paid (refunded) for income taxes | $ 78.9 | $ 54.3 | ||
Liability for penalties | $ 0.3 | 0.3 | ||
Liability for interest related to uncertain tax positions | 14.3 | 14.3 | ||
State Loss Carryforwards | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred tax assets, valuation allowance | 43 | 43 | ||
Foreign Jurisdiction Tax Credits | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred tax assets, valuation allowance | 4 | 4 | ||
Series of Individually Immaterial Business Acquisitions | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred income tax liabilities | $ 151 | $ 0 | $ 151 | $ 0 |
Stock Repurchases, Dividends _3
Stock Repurchases, Dividends and Earnings per Share - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Oct. 31, 2020 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Dividends Payable [Line Items] | ||||||||
Reserve for stock issuance (in shares) | 12 | 12 | ||||||
Additional shares authorized for repurchase, value | $ 2,000 | |||||||
Stock repurchased and pending settlement (in shares) | 0 | 0.5 | 0 | 0.5 | ||||
Stock repurchased and pending settlement | $ 52.1 | $ 52.1 | ||||||
Remaining authorized repurchase amount | $ 1,500 | $ 1,500 | ||||||
Quarterly dividend declared (in dollars per share) | $ 0.460 | $ 0.425 | $ 0.920 | $ 0.850 | ||||
Cash dividends declared | $ 145.3 | $ 145.3 | $ 135.4 | $ 135.6 | ||||
Quarterly dividend payable | $ 145.3 | $ 145.3 | $ 145.9 | |||||
Antidilutive securities (in shares) | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Retained Earnings | ||||||||
Dividends Payable [Line Items] | ||||||||
Cash dividends declared | $ 145.3 | $ 145.3 | $ 135.4 | $ 135.6 | $ 290.6 |
Stock Repurchases, Dividends _4
Stock Repurchases, Dividends and Earnings per Share - Share Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity [Abstract] | ||||
Number of shares repurchased (in shares) | 0 | 300,000 | 1,600,000 | 400,000 |
Amount paid | $ 0 | $ 27.4 | $ 203.5 | $ 40.1 |
Weighted average cost per share (in dollars per share) | $ 0 | $ 108.68 | $ 124.02 | $ 101.84 |
Stock Repurchases, Dividends _5
Stock Repurchases, Dividends and Earnings per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Basic earnings per share: | ||||
Net income attributable to Republic Services, Inc. | $ 371,888 | $ 331,065 | $ 723,912 | $ 627,009 |
Weighted average common shares outstanding (in shares) | 316,473 | 319,526 | 316,538 | 319,487 |
Basic earnings per share (in dollars per share) | $ 1.18 | $ 1.04 | $ 2.29 | $ 1.96 |
Effect of dilutive securities: | ||||
Weighted average common and common equivalent shares outstanding (in shares) | 316,960 | 320,041 | 317,079 | 319,937 |
Diluted earnings per share (in dollars per share) | $ 1.17 | $ 1.03 | $ 2.28 | $ 1.96 |
Restricted stock units | ||||
Effect of dilutive securities: | ||||
Unvested awards (in shares) | 126 | 232 | 170 | 187 |
Phantom Share Units (PSUs) | ||||
Effect of dilutive securities: | ||||
Unvested awards (in shares) | 361 | 283 | 372 | 263 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss by Component - Summary of Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | $ 8,984.7 | $ 8,979.7 | $ 8,638.3 | $ 8,488.8 | $ 8,979.7 | $ 8,488.8 |
Other comprehensive income (loss) before reclassifications | (1) | |||||
Amounts reclassified from accumulated other comprehensive income | 2.2 | |||||
Net current period other comprehensive income | 0.1 | 1.1 | 0.5 | 1.1 | 1.2 | 1.6 |
Balance at end of period | 9,216 | 8,984.7 | $ 8,783.4 | $ 8,638.3 | 9,216 | $ 8,783.4 |
Total | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | (14.6) | (14.6) | ||||
Balance at end of period | (13.4) | (13.4) | ||||
Cash Flow Hedges | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | (25.8) | (25.8) | ||||
Other comprehensive income (loss) before reclassifications | (1.1) | |||||
Amounts reclassified from accumulated other comprehensive income | 2.2 | |||||
Net current period other comprehensive income | 1.1 | |||||
Balance at end of period | (24.7) | (24.7) | ||||
Defined Benefit Pension Items | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | 11.2 | 11.2 | ||||
Other comprehensive income (loss) before reclassifications | 0 | |||||
Amounts reclassified from accumulated other comprehensive income | 0 | |||||
Net current period other comprehensive income | 0 | |||||
Balance at end of period | 11.2 | 11.2 | ||||
Foreign Currency Translation | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Balance at beginning of period | $ 0 | 0 | ||||
Other comprehensive income (loss) before reclassifications | 0.1 | |||||
Amounts reclassified from accumulated other comprehensive income | 0 | |||||
Net current period other comprehensive income | 0.1 | |||||
Balance at end of period | $ 0.1 | $ 0.1 |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Loss by Component - Summary of Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Loss on cash flow hedges: | ||||||
Interest expense | $ (94) | $ (78.4) | $ (177.5) | $ (156.7) | ||
Tax benefit | (106.3) | (95.4) | (226.6) | (199.1) | ||
Pension gains: | ||||||
Tax expense | (106.3) | (95.4) | (226.6) | (199.1) | ||
Net of tax | 371.8 | $ 351.9 | 332 | $ 296.4 | 723.7 | 628.4 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||||
Pension gains: | ||||||
Net of tax | (1.1) | (0.5) | (2.2) | (1.6) | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedges | ||||||
Loss on cash flow hedges: | ||||||
Total before tax | (1.5) | (1.6) | (3) | (3.1) | ||
Tax benefit | 0.4 | 0.4 | 0.8 | 0.8 | ||
Pension gains: | ||||||
Tax expense | 0.4 | 0.4 | 0.8 | 0.8 | ||
Net of tax | (1.1) | (1.2) | (2.2) | (2.3) | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedges | Terminated interest rate locks | ||||||
Loss on cash flow hedges: | ||||||
Interest expense | (1.5) | (1.6) | (3) | (3.1) | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedges | 2022 Interest Rate Swap | ||||||
Loss on cash flow hedges: | ||||||
Interest expense | 0 | 0 | 0 | 0 | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Defined Benefit Pension Items | Pension settlement | ||||||
Loss on cash flow hedges: | ||||||
Tax benefit | 0 | (0.2) | 0 | (0.2) | ||
Pension gains: | ||||||
Other income | 0 | 0.9 | 0 | 0.9 | ||
Tax expense | 0 | (0.2) | 0 | (0.2) | ||
Net of tax | $ 0 | $ 0.7 | $ 0 | $ 0.7 |
Financial Instruments - Derivat
Financial Instruments - Derivative Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ (94) | $ (78.4) | $ (177.5) | $ (156.7) |
Interest rate swap locks: | ||||
Amount of loss reclassified from accumulated other comprehensive loss into income, net of tax | 1.1 | 1.2 | 2.2 | 2.3 |
Net swap settlements | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | ||||
Gain (loss) on interest rate swaps | 1.4 | 2 | 3.2 | 3.9 |
2022 Interest Rate Swap | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | ||||
Gain (loss) on interest rate swaps | 1.9 | 1 | 5.2 | 2.4 |
Interest Expense | Net swap settlements | Fair Value Hedging | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | ||||
Gain (loss) on interest rate swaps | 1.4 | 2 | 3.2 | 3.9 |
Interest Expense | Net periodic (loss) earnings | Fair Value Hedging | ||||
Gain (Loss) on Fair Value Hedges Recognized in Earnings [Abstract] | ||||
Gain (loss) on interest rate swaps | (0.6) | 0.1 | (1.2) | 0.2 |
Interest Expense | Interest Rate Swap Locks | Cash Flow Hedging | ||||
Interest rate swap locks: | ||||
Amount of loss reclassified from accumulated other comprehensive loss into income, net of tax | (1.1) | (1.2) | (2.2) | (2.3) |
Interest Expense | Interest Rate Contract | ||||
Gain (loss) on free-standing derivative instruments: | ||||
Net gain (loss) on change in fair value of free-standing derivative instruments | $ 0.4 | $ (0.6) | $ 1.7 | $ (0.2) |
Financial Instruments - Assets
Financial Instruments - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Liabilities: | ||
Contingent consideration - other accrued liabilities and other long-term liabilities | $ 63.5 | $ 64.4 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Derivative and hedging assets - other assets | 59.5 | 19.7 |
Total assets | 147.4 | 118 |
Liabilities: | ||
Derivative and hedging liabilities - other long-term liabilities | 66.8 | 50.7 |
Contingent consideration - other accrued liabilities and other long-term liabilities | 67.9 | 68.8 |
Total liabilities | 134.7 | 119.5 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Derivative and hedging assets - other assets | 0 | 0 |
Total assets | 30.5 | 35.2 |
Liabilities: | ||
Derivative and hedging liabilities - other long-term liabilities | 0 | 0 |
Contingent consideration - other accrued liabilities and other long-term liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Derivative and hedging assets - other assets | 59.5 | 19.7 |
Total assets | 116.9 | 82.8 |
Liabilities: | ||
Derivative and hedging liabilities - other long-term liabilities | 66.8 | 50.7 |
Contingent consideration - other accrued liabilities and other long-term liabilities | 0 | 0 |
Total liabilities | 66.8 | 50.7 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Derivative and hedging assets - other assets | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative and hedging liabilities - other long-term liabilities | 0 | 0 |
Contingent consideration - other accrued liabilities and other long-term liabilities | 67.9 | 68.8 |
Total liabilities | 67.9 | 68.8 |
Carrying Amount | ||
Assets: | ||
Derivative and hedging assets - other assets | 59.5 | 19.7 |
Total assets | 147.4 | 118 |
Liabilities: | ||
Derivative and hedging liabilities - other long-term liabilities | 66.8 | 50.7 |
Contingent consideration - other accrued liabilities and other long-term liabilities | 67.9 | 68.8 |
Total liabilities | 134.7 | 119.5 |
Money market mutual funds | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market mutual funds | 30.5 | 35.2 |
Money market mutual funds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Money market mutual funds | 30.5 | 35.2 |
Money market mutual funds | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Money market mutual funds | 0 | 0 |
Money market mutual funds | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Money market mutual funds | 0 | 0 |
Money market mutual funds | Carrying Amount | ||
Assets: | ||
Money market mutual funds | 30.5 | 35.2 |
Bonds | Fair Value, Measurements, Recurring | ||
Assets: | ||
Bonds - restricted cash and marketable securities and other assets | 57.4 | 63.1 |
Bonds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Bonds - restricted cash and marketable securities and other assets | 0 | 0 |
Bonds | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Bonds - restricted cash and marketable securities and other assets | 57.4 | 63.1 |
Bonds | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Bonds - restricted cash and marketable securities and other assets | 0 | 0 |
Bonds | Carrying Amount | ||
Assets: | ||
Bonds - restricted cash and marketable securities and other assets | $ 57.4 | $ 63.1 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Long-term debt, carrying value | $ 11,903,300,000 | $ 9,554,400,000 |
Contingent consideration - other accrued liabilities and other long-term liabilities | 63,500,000 | 64,400,000 |
Waste Management Contract, Sonoma County | ||
Derivative [Line Items] | ||
Contingent consideration - other accrued liabilities and other long-term liabilities | 61,400,000 | |
Potential undiscounted future contingent liability payments, minimum | 77,000,000 | |
Potential undiscounted future contingent liability payments, maximum | 95,000,000 | |
Change in contingent consideration, liability | 0 | |
Carrying Amount | ||
Derivative [Line Items] | ||
Contingent consideration - other accrued liabilities and other long-term liabilities | 67,900,000 | 68,800,000 |
Estimate of Fair Value Measurement | ||
Derivative [Line Items] | ||
Long-term debt | $ 11,400,000,000 | $ 10,300,000,000 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Segment Reporting - Financial I
Segment Reporting - Financial Information by Regional Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Gross Revenue | $ 3,957.3 | $ 3,333.5 | $ 7,423.4 | $ 6,390.6 | |
Intercompany Revenue | (543.6) | (521.2) | (1,039.6) | (982.4) | |
Revenue | 3,413.6 | 2,812.3 | 6,383.7 | 5,408.2 | |
Depreciation, Amortization, Depletion and Accretion | 360 | 323.7 | 692 | 626.3 | |
Operating income | 589.6 | 517.9 | 1,150.2 | 1,010.3 | |
Capital Expenditures | 313.2 | 277.6 | 647.2 | 608.6 | |
Total assets | 28,212.9 | 23,922.1 | 28,212.9 | 23,922.1 | $ 24,955 |
Group 1 | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 1,827.5 | 1,668.3 | 3,529.7 | 3,215.9 | |
Intercompany Revenue | (279) | (275) | (540.8) | (524) | |
Revenue | 1,548.4 | 1,393.3 | 2,988.8 | 2,691.9 | |
Depreciation, Amortization, Depletion and Accretion | 145.9 | 138.7 | 289.6 | 270.8 | |
Operating income | 415.1 | 379.8 | 787.9 | 731.3 | |
Capital Expenditures | 123.3 | 149.3 | 233.8 | 274.1 | |
Total assets | 12,211.8 | 11,946.7 | 12,211.8 | 11,946.7 | |
Group 2 | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 1,768.8 | 1,576.9 | 3,367.3 | 3,000.7 | |
Intercompany Revenue | (241.9) | (235) | (459.2) | (436.8) | |
Revenue | 1,526.9 | 1,341.9 | 2,908.1 | 2,563.9 | |
Depreciation, Amortization, Depletion and Accretion | 148.7 | 138 | 290.9 | 266.8 | |
Operating income | 328.4 | 283.6 | 647.8 | 545.4 | |
Capital Expenditures | 111.8 | 108.8 | 203.1 | 191.4 | |
Total assets | 10,225.8 | 9,649.3 | 10,225.8 | 9,649.3 | |
Corporate entities and other | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 361 | 88.3 | 526.4 | 174 | |
Intercompany Revenue | (22.7) | (11.2) | (39.6) | (21.6) | |
Revenue | 338.3 | 77.1 | 486.8 | 152.4 | |
Depreciation, Amortization, Depletion and Accretion | 65.4 | 47 | 111.5 | 88.7 | |
Operating income | (153.9) | (145.5) | (285.5) | (266.4) | |
Capital Expenditures | 78.1 | 19.5 | 210.3 | 143.1 | |
Total assets | $ 5,775.3 | $ 2,326.1 | $ 5,775.3 | $ 2,326.1 |
Revenue and Credit Losses - Dis
Revenue and Credit Losses - Disaggregation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 3,413.6 | $ 2,812.3 | $ 6,383.7 | $ 5,408.2 |
Revenue as a percentage of total revenue | 100% | 100% | 100% | 100% |
Transfer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 191.9 | $ 175.6 | $ 356.7 | $ 321.8 |
Revenue as a percentage of total revenue | 5.60% | 6.20% | 5.60% | 6% |
Landfill | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 406.1 | $ 371 | $ 755.6 | $ 686.8 |
Revenue as a percentage of total revenue | 11.90% | 13.20% | 11.80% | 12.70% |
Environmental solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 294.3 | $ 34.1 | $ 393.6 | $ 69 |
Revenue as a percentage of total revenue | 8.60% | 1.20% | 6.20% | 1.30% |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 191 | $ 169.2 | $ 370.3 | $ 318.1 |
Revenue as a percentage of total revenue | 5.60% | 6.10% | 5.80% | 5.90% |
Recycling processing and commodity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 113.6 | $ 103 | $ 213.3 | $ 190.6 |
Revenue as a percentage of total revenue | 3.30% | 3.70% | 3.30% | 3.50% |
Other non-core | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 77.4 | $ 66.2 | $ 157 | $ 127.5 |
Revenue as a percentage of total revenue | 2.30% | 2.40% | 2.50% | 2.40% |
Operating Segments | Collection | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 2,330.4 | $ 2,062.4 | $ 4,507.4 | $ 4,012.5 |
Revenue as a percentage of total revenue | 68.30% | 73.30% | 70.60% | 74.10% |
Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 654.1 | $ 611.6 | $ 1,282 | $ 1,204.7 |
Revenue as a percentage of total revenue | 19.20% | 21.70% | 20.10% | 22.20% |
Operating Segments | Small-container | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 975.6 | $ 843.2 | $ 1,891.2 | $ 1,653.4 |
Revenue as a percentage of total revenue | 28.60% | 30% | 29.60% | 30.50% |
Operating Segments | Large-container | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 687.4 | $ 594.6 | $ 1,308.5 | $ 1,129 |
Revenue as a percentage of total revenue | 20.10% | 21.10% | 20.50% | 20.90% |
Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 13.3 | $ 13 | $ 25.7 | $ 25.4 |
Revenue as a percentage of total revenue | 0.40% | 0.50% | 0.40% | 0.50% |
Operating Segments | Transfer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 407.8 | $ 383.7 | $ 770.4 | $ 715 |
Operating Segments | Landfill | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 699 | 654.2 | 1,316.1 | 1,219.3 |
Operating Segments | Environmental solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 308 | 37.6 | 416.9 | 76.6 |
Intersegment Eliminations | Transfer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (215.9) | (208.1) | (413.7) | (393.2) |
Intersegment Eliminations | Landfill | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (292.9) | (283.2) | (560.5) | (532.5) |
Intersegment Eliminations | Environmental solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ (13.7) | $ (3.5) | $ (23.3) | $ (7.6) |
Revenue and Credit Losses - Nar
Revenue and Credit Losses - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs and sales commissions | $ 79.8 | $ 79.8 | $ 80.6 | ||
Capitalized sales commissions to selling, general and administrative expenses | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized contract cost, amortization | 3.5 | $ 3.2 | 6.7 | $ 6.4 | |
Other deferred contract costs as a reduction of revenue | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized contract cost, amortization | $ 1.5 | $ 1.6 | $ 3 | $ 3.1 |
Revenue and Credit Losses - All
Revenue and Credit Losses - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | $ 38.5 | $ 34.7 |
Additions charged to expense | 17.2 | 11.4 |
Accounts written-off | (5.1) | (7) |
Balance at end of period | $ 50.6 | $ 39.1 |
Commitments and Contingencies -
Commitments and Contingencies - Legal Proceedings (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Losses accrued related to legal proceedings | $ (14) |
Loss contingency additional potential liability | $ 11 |
Commitments and Contingencies_2
Commitments and Contingencies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Cash and cash equivalents | $ 119.4 | $ 29 | $ 34 | $ 38.2 |
Restricted cash and marketable securities | 121.5 | 139 | 151 | 149.1 |
Less: restricted marketable securities | (57.2) | (62.4) | (73) | (73.1) |
Cash, cash equivalents, restricted cash and restricted cash equivalents | $ 183.7 | $ 105.6 | $ 112 | $ 114.2 |
Commitments and Contingencies_3
Commitments and Contingencies - Restricted Cash and Marketable Securities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Restricted Cash and Marketable Securities [Abstract] | ||||
Financing proceeds | $ 2 | $ 12.4 | ||
Capping, closure and post-closure obligations | 38.3 | 42.4 | ||
Insurance | 81.2 | 84.2 | ||
Total restricted cash and marketable securities | $ 121.5 | $ 139 | $ 151 | $ 149.1 |