Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 19, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 $0.01 per share | |
Trading Symbol | RSG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 314,636,503 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001060391 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 157.5 | $ 143.4 |
Accounts receivable, less allowance for doubtful accounts and other of $83.5 and $51.9, respectively | 1,829.7 | 1,677.2 |
Prepaid expenses and other current assets | 361.2 | 536.5 |
Total current assets | 2,348.4 | 2,357.1 |
Restricted cash and marketable securities | 153.3 | 127.6 |
Property and equipment, net | 10,701.4 | 10,744 |
Goodwill | 15,290.7 | 14,451.5 |
Other intangible assets, net | 447.2 | 347.2 |
Other assets | 1,101.8 | 1,025.5 |
Total assets | 30,042.8 | 29,052.9 |
Current liabilities: | ||
Accounts payable | 1,198.2 | 1,221.8 |
Notes payable and current maturities of long-term debt | 932.3 | 456 |
Deferred revenue | 484.8 | 443 |
Accrued landfill and environmental costs, current portion | 144.1 | 132.6 |
Accrued interest | 87.8 | 79 |
Other accrued liabilities | 1,221.6 | 1,058.3 |
Total current liabilities | 4,068.8 | 3,390.7 |
Long-term debt, net of current maturities | 10,992.8 | 11,329.5 |
Accrued landfill and environmental costs, net of current portion | 2,225.6 | 2,141.3 |
Deferred income taxes and other long-term tax liabilities, net | 1,474.9 | 1,528.8 |
Insurance reserves, net of current portion | 352.6 | 315.1 |
Other long-term liabilities | 595.7 | 660.7 |
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; 320.7 and 320.3 issued including shares held in treasury, respectively | 3.2 | 3.2 |
Additional paid-in capital | 2,887.6 | 2,843.2 |
Retained earnings | 8,163.5 | 7,356.3 |
Treasury stock, at cost; 5.6 and 4.2 shares, respectively | (720.5) | (504.6) |
Accumulated other comprehensive loss, net of tax | (2.5) | (12.1) |
Total Republic Services, Inc. stockholders’ equity | 10,331.3 | 9,686 |
Non-controlling interests in consolidated subsidiary | 1.1 | 0.8 |
Total stockholders’ equity | 10,332.4 | 9,686.8 |
Total liabilities and stockholders’ equity | $ 30,042.8 | $ 29,052.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Allowance for doubtful accounts | $ 83.5 | $ 51.9 |
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) | 320,700,000 | 320,300,000 |
Treasury stock (in shares) | 5,600,000 | 4,200,000 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 3,825,900 | $ 3,597,800 | $ 11,132,900 | $ 9,981,500 |
Expenses: | ||||
Cost of operations | 2,284,300 | 2,194,200 | 6,678,000 | 6,023,600 |
Depreciation, amortization and depletion | 382,300 | 353,900 | 1,099,400 | 1,001,800 |
Accretion | 24,600 | 22,800 | 73,200 | 66,900 |
Selling, general and administrative | 402,100 | 361,000 | 1,177,300 | 1,059,000 |
Withdrawal costs - multiemployer pension funds | 0 | 0 | 0 | 2,200 |
Gain on business divestitures and impairments, net | (1,500) | (5,200) | (1,500) | (5,300) |
Restructuring charges | 6,300 | 6,800 | 27,300 | 18,800 |
Operating income | 727,800 | 664,300 | 2,079,200 | 1,814,500 |
Interest expense | (127,600) | (105,200) | (378,800) | (282,700) |
Loss on extinguishment of debt | 0 | 0 | (200) | 0 |
Income (loss) from unconsolidated equity method investments | 2,800 | (51,800) | 200 | (69,200) |
Interest income | 2,000 | 800 | 5,000 | 2,000 |
Other income (expense), net | 1,300 | (300) | 3,200 | (6,500) |
Income before income taxes | 606,300 | 507,800 | 1,708,600 | 1,458,100 |
Provision for income taxes | 126,000 | 90,900 | 416,900 | 317,500 |
Net income | 480,300 | 416,900 | 1,291,700 | 1,140,600 |
Net (loss) income attributable to non-controlling interests in consolidated subsidiary | (100) | 0 | (300) | 200 |
Net income attributable to Republic Services, Inc. | $ 480,169 | $ 416,924 | $ 1,291,419 | $ 1,140,836 |
Basic earnings per share attributable to Republic Services, Inc. stockholders: | ||||
Basic earnings per share (in dollars per share) | $ 1.52 | $ 1.32 | $ 4.08 | $ 3.60 |
Weighted average common shares outstanding (in shares) | 316,062 | 316,506 | 316,541 | 316,527 |
Diluted earnings per share attributable to Republic Services, Inc. stockholders: | ||||
Diluted earnings per share (in dollars per share) | $ 1.52 | $ 1.32 | $ 4.07 | $ 3.60 |
Weighted average common and common equivalent shares outstanding (in shares) | 316,556 | 317,046 | 317,003 | 317,068 |
Cash dividends per common share (in dollars per share) | $ 0.535 | $ 0.495 | $ 1.525 | $ 1.415 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 480.3 | $ 416.9 | $ 1,291.7 | $ 1,140.6 |
Hedging activity: | ||||
Realized (income) loss reclassified into earnings | (2.3) | 0 | (7.1) | 2.1 |
Unrealized gain | 4.1 | 9.1 | 16.6 | 8.1 |
Pension activity: | ||||
Change in funded status of pension plan obligations | 0 | 0 | 0.2 | 0 |
Foreign currency activity: | ||||
Unrealized gain (loss) on foreign currency translation | 2.4 | (6.1) | (0.1) | (6.2) |
Other comprehensive income, net of tax | 4.2 | 3 | 9.6 | 4 |
Comprehensive income | 484.5 | 419.9 | 1,301.3 | 1,144.6 |
Comprehensive (income) loss attributable to non-controlling interests | (0.1) | 0 | (0.3) | 0.2 |
Comprehensive income attributable to Republic Services, Inc. | $ 484.4 | $ 419.9 | $ 1,301 | $ 1,144.8 |
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, 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) | 1,140.6 | ||||||
Other comprehensive income | 4 | ||||||
Balance (in shares) at Sep. 30, 2022 | 320.2 | ||||||
Balance (in shares) at Sep. 30, 2022 | (4.2) | ||||||
Balance at end of period at Sep. 30, 2022 | 9,490.5 | $ 3.2 | 2,831.2 | 7,166.8 | $ (500.7) | (10.6) | 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) | ||||
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 | 9,215.8 | $ 3.2 | 2,818.9 | 6,907.1 | $ (500.4) | (13.6) | 0.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 416.9 | 416.9 | |||||
Other comprehensive income | 3 | 3 | |||||
Cash dividends declared | (156.4) | (156.4) | |||||
Issuances of common stock (in shares) | 0.1 | 0.1 | |||||
Issuances of common stock | 2.6 | 2.9 | $ (0.3) | ||||
Stock-based compensation | 9.4 | 10.2 | (0.8) | ||||
Distributions paid | (0.8) | (0.8) | |||||
Balance (in shares) at Sep. 30, 2022 | 320.2 | ||||||
Balance (in shares) at Sep. 30, 2022 | (4.2) | ||||||
Balance at end of period at Sep. 30, 2022 | $ 9,490.5 | $ 3.2 | 2,831.2 | 7,166.8 | $ (500.7) | (10.6) | 0.6 |
Balance (in shares) at Dec. 31, 2022 | 320.3 | ||||||
Balance (in shares) at Dec. 31, 2022 | (4.2) | (4.2) | |||||
Balance at beginning of period at Dec. 31, 2022 | $ 9,686.8 | $ 3.2 | 2,843.2 | 7,356.3 | $ (504.6) | (12.1) | 0.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 383.9 | 383.9 | |||||
Other comprehensive income | 2.8 | 2.8 | |||||
Cash dividends declared | (156.5) | (156.5) | |||||
Issuances of common stock (in shares) | 0.3 | 0.1 | |||||
Issuances of common stock | (11) | 2.9 | $ (13.9) | ||||
Stock-based compensation | 11.3 | 12.3 | (1) | ||||
Balance (in shares) at Mar. 31, 2023 | 320.6 | ||||||
Balance (in shares) at Mar. 31, 2023 | (4.3) | ||||||
Balance at end of period at Mar. 31, 2023 | $ 9,917.3 | $ 3.2 | 2,858.4 | 7,582.7 | $ (518.5) | (9.3) | 0.8 |
Balance (in shares) at Dec. 31, 2022 | 320.3 | ||||||
Balance (in shares) at Dec. 31, 2022 | (4.2) | (4.2) | |||||
Balance at beginning of period at Dec. 31, 2022 | $ 9,686.8 | $ 3.2 | 2,843.2 | 7,356.3 | $ (504.6) | (12.1) | 0.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,291.7 | ||||||
Other comprehensive income | $ 9.6 | ||||||
Cash dividends declared | (481.6) | ||||||
Balance (in shares) at Sep. 30, 2023 | 320.7 | ||||||
Balance (in shares) at Sep. 30, 2023 | (5.6) | (5.6) | |||||
Balance at end of period at Sep. 30, 2023 | $ 10,332.4 | $ 3.2 | 2,887.6 | 8,163.5 | $ (720.5) | (2.5) | 1.1 |
Balance (in shares) at Mar. 31, 2023 | 320.6 | ||||||
Balance (in shares) at Mar. 31, 2023 | (4.3) | ||||||
Balance at beginning of period at Mar. 31, 2023 | 9,917.3 | $ 3.2 | 2,858.4 | 7,582.7 | $ (518.5) | (9.3) | 0.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 427.6 | 427.4 | 0.2 | ||||
Other comprehensive income | 2.6 | 2.6 | |||||
Cash dividends declared | (156.6) | (156.6) | |||||
Issuances of common stock (in shares) | 0.1 | ||||||
Issuances of common stock | 4 | 4.5 | $ (0.5) | ||||
Stock-based compensation | 9.8 | 10.6 | (0.8) | ||||
Balance (in shares) at Jun. 30, 2023 | 320.7 | ||||||
Balance (in shares) at Jun. 30, 2023 | (4.3) | ||||||
Balance at end of period at Jun. 30, 2023 | 10,204.7 | $ 3.2 | 2,873.5 | 7,852.7 | $ (519) | (6.7) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 480.3 | 480.2 | 0.1 | ||||
Other comprehensive income | 4.2 | 4.2 | |||||
Cash dividends declared | (168.5) | (168.5) | |||||
Issuances of common stock | 2.7 | 3.1 | $ (0.4) | ||||
Stock-based compensation | 10.1 | 11 | (0.9) | ||||
Purchase of common stock for treasury (in shares) | (1.3) | ||||||
Purchase of common stock for treasury | $ (201.1) | $ (201.1) | |||||
Balance (in shares) at Sep. 30, 2023 | 320.7 | ||||||
Balance (in shares) at Sep. 30, 2023 | (5.6) | (5.6) | |||||
Balance at end of period at Sep. 30, 2023 | $ 10,332.4 | $ 3.2 | $ 2,887.6 | $ 8,163.5 | $ (720.5) | $ (2.5) | $ 1.1 |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash provided by operating activities: | ||
Net income | $ 1,291.7 | $ 1,140.6 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation, amortization, depletion and accretion | 1,172.6 | 1,068.7 |
Non-cash interest expense | 65.5 | 55.3 |
Stock-based compensation | 31.7 | 30.8 |
Deferred tax provision | 52.2 | 100.2 |
Provision for doubtful accounts, net of adjustments | 38.6 | 27.8 |
Loss on extinguishment of debt | 0.2 | 0 |
Gain on disposition of assets and asset impairments, net | (3.7) | (8) |
Environmental adjustments | 0 | (0.1) |
(Gain) loss from unconsolidated equity method investments | (0.2) | 69.2 |
Other non-cash items | (0.6) | 8 |
Change in assets and liabilities, net of effects from business acquisitions and divestitures: | ||
Accounts receivable | (161) | (206.1) |
Prepaid expenses and other assets | 121.4 | 28 |
Accounts payable | 93.5 | 97.7 |
Capping, closure and post-closure expenditures | (40.5) | (35.6) |
Remediation expenditures | (31.4) | (37.3) |
Other liabilities | 86.9 | 40.8 |
Proceeds for retirement of certain hedging relationships | 2.4 | 0 |
Cash provided by operating activities | 2,719.3 | 2,380 |
Cash (used in) provided by investing activities: | ||
Purchases of property and equipment | (1,083.2) | (924.8) |
Proceeds from sales of property and equipment | 25 | 24 |
Cash used in acquisitions and investments, net of cash and restricted cash acquired | (1,051.1) | (2,847.6) |
Cash paid for business divestitures | 1.7 | 50.1 |
Purchases of restricted marketable securities | (13.8) | (15.7) |
Sales of restricted marketable securities | 13.1 | 15.4 |
Other | 7.5 | (2.3) |
Cash used in investing activities | (2,100.8) | (3,700.9) |
Cash provided by (used in) financing activities: | ||
Proceeds from credit facilities and notes payable, net of fees | 27,940.2 | 10,496.5 |
Proceeds from issuance of senior notes, net of discount and fees | 1,183.6 | 0 |
Payments of credit facilities and notes payable | (29,024.7) | (8,472.1) |
Issuances of common stock, net | (4.3) | (12.9) |
Purchases of common stock for treasury | (190.4) | (203.5) |
Cash dividends paid | (469.5) | (436.5) |
Distributions paid to non-controlling interests in consolidated subsidiary | 0 | (0.8) |
Contingent consideration payments | (14.1) | (4.5) |
Cash (used in) provided by financing activities | (579.2) | 1,366.2 |
Effect of foreign exchange rate changes on cash | 0.2 | (3.1) |
Increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 39.5 | 42.2 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 214.3 | 105.6 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 253.8 | $ 147.8 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
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. Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3. Group 1 is our recycling and solid waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and solid waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada. Group 3 is our environmental solutions business operating primarily in geographic areas located across the United States and Canada. These groups represent our reportable segments, which each provide integrated environmental services, including but not limited to collection, transfer, recycling, and disposal. Prior to the third quarter of 2022, our environmental services operating segment, now referred to as our Group 3 reportable segment, was aggregated with Corporate entities and other. 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, 2022. 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 acquisitions. 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, 2022. Our actual results may differ significantly from our estimates. New Accounting Pronouncements Accounting Standards Adopted Disclosure of Supplier Finance Program Obligations In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The ASU requires buyers to disclose information about their supplier finance programs. Interim and annual requirements include the disclosure of outstanding amounts under the obligations as of the end of the reporting period, and annual requirements include a rollforward of those obligations for the annual reporting period, as well as a description of payment and other key terms of the programs. This update is effective for annual periods beginning after December 15, 2022, and interim periods within those fiscal years, except for the requirement to disclose rollforward information, which is effective for fiscal years beginning after December 15, 2023. The adoption of ASU 2022-04 on January 1, 2023 did not have a material impact on our consolidated financial statements. Through September 30, 2023, certain of our vendors chose to opt into our vendor supply finance agreement. This agreement allows a vendor to choose, on an invoice by invoice basis, to receive an earlier payment instead of a payment based on its original contracted terms (which, depending on the vendor, could extend up to 90 days or longer). As of September 30, 2023 and December 31, 2022, the amounts outstanding under these programs were not material. Accounting Standards Updates Issued but not yet Adopted Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative |
Business Acquisitions, Investme
Business Acquisitions, Investments and Restructuring Charges | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES | BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES Acquisitions We acquired various environmental services businesses during the nine months ended September 30, 2023 and 2022. The aggregate purchase price paid for these business acquisitions and the allocations of the aggregate purchase price follows: 2023 2022 Purchase price: Cash used in acquisitions, net of cash acquired of $15.2 and $66.6, respectively $ 938.0 $ 2,583.2 Holdbacks 9.4 12.6 Fair value, future minimum finance lease payments 0.6 15.6 Total $ 948.0 $ 2,611.4 Allocated as follows: Accounts receivable $ 25.5 $ 249.2 Prepaid expenses 0.9 15.6 Landfill development costs 0.5 495.7 Property and equipment 223.9 730.6 Operating right-of-use lease assets 3.4 55.4 Interest rate swap — 29.1 Other assets 0.1 42.3 Inventory 2.1 11.6 Accounts payable (5.6) (108.9) Deferred revenue (8.2) (27.7) Environmental remediation liabilities (5.6) (92.9) Closure and post-closure liabilities (10.5) (89.3) Operating right-of-use lease liabilities (3.4) (55.8) Deferred income tax liabilities (23.6) (151.0) Other liabilities (0.3) (54.7) Fair value of tangible assets acquired and liabilities assumed 199.2 1,049.2 Excess purchase price to be allocated $ 748.8 $ 1,562.2 Excess purchase price allocated as follows: Other intangible assets $ 136.0 $ 169.6 Goodwill 612.8 1,392.6 Total allocated $ 748.8 $ 1,562.2 Certain of the purchase price allocations are preliminary and based on information existing at the acquisition dates. Accordingly, the purchase price allocations are subject to change. For the acquisitions that closed during the nine months ended September 30, 2023, we expect that a majority of the goodwill and intangible assets recognized as a result of these acquisitions will be 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. As of June 30, 2023, we finalized the purchase price allocation. We did not step-up the tax basis of the assets recognized in connection with the US Ecology acquisition, and do not expect that the goodwill and intangible assets recognized will be deductible for tax purposes. During the nine months ended September 30, 2023 and 2022 , we incurred $24.3 million and $65.4 million, respectively, of acquisition integration and deal costs in connection with the acquisition of US Ecology. During the three months ended September 30, 2023 and 2022 , we incurred $6.2 million and $8.7 million, respectively, of acquisition integration and deal costs in connection with the acquisition of US Ecology. The 2023 costs primarily related to the integration of certain software systems as well as rebranding of the business , and the 2022 costs included certain costs to close the acquisition and integrate the business. In June 2023, we acquired a vertically-integrated set of operations located primarily in Colorado from GFL Environmental Inc., including recycling, hauling, transfer and landfill operations. The purchase price allocation is preliminary and remains subject to revision 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 assigned to tangible and intangible assets acquired as well as certain landfill and environmental liabilities assumed, is based on the best estimates of management and is subject to revision based on the final valuations. We expect our valuations to be substantially complete by the end of 2023. Investments In 2023 and 2022, 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 $34.0 million and $121.0 million, which were recorded to other assets in our September 30, 2023 and 2022 consolidated balance sheets, respectively. During the three and nine months ended September 30, 2023, we decreased the carrying value of these investments by $3.7 million and $6.3 million, respectively, and during the three and nine months ended September 30, 2022, we decreased the carrying value of these investments by $49.5 million and $61.8 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 benefits of approximately $8 million for the three and nine months ended September 30, 2023, and benefits of approximately $35 million and $60 million, respectively, for the three and nine months ended September 30, 2022, due to the tax credits related to these investments . 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, 2022. Restructuring Charges During the three and nine months ended September 30, 2023, we incurred restructuring charges of $6.3 million and $27.3 million, respectively, and during the three and nine months ended September 30, 2022, we incurred restructuring charges of $6.8 million and $18.8 million, respectively. Of the 2023 charges, $9.5 million related to the early termination of certain leases and $17.8 million related to the redesign of our asset management, and customer and order management software systems, and the 2022 charges primarily related to the redesign of our general ledger, budgeting and procurement enterprise resource planning systems which was completed with systems being placed into production in 2022. During the nine months ended September 30, 2023 and 2022, we paid $32.4 million and $17.0 million, respectively, related to these restructuring efforts. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2023 | |
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, 2022 Acquisitions Divestitures Adjustments to Acquisitions Balance as of September 30, 2023 Group 1 $ 6,637.9 $ 445.5 $ — $ (0.9) $ 7,082.5 Group 2 6,238.3 167.3 (0.6) 0.9 6,405.9 Group 3 1,575.3 — — 227.0 1,802.3 Total $ 14,451.5 $ 612.8 $ (0.6) $ 227.0 $ 15,290.7 Adjustments to acquisitions during the nine months ended September 30, 2023 primarily related to changes in our valuation of assets acquired and liabilities assumed in connection with our acquisition of US Ecology. 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, 2022 Acquisitions Adjustments and Other Balance as of September 30, 2023 Balance as of December 31, 2022 Additions Charged to Expense Adjustments and Other Balance as of September 30, 2023 Other Intangible Assets, Net as of September 30, 2023 Customer relationships $ 1,013.5 $ 133.1 $ (572.6) $ 574.0 $ (709.1) $ (37.5) $ 590.5 $ (156.1) $ 417.9 Non-compete agreements 67.9 1.6 (39.7) 29.8 (50.9) (4.8) 39.7 (16.0) 13.8 Other intangible assets 77.0 1.3 (50.1) 28.2 (51.2) (5.1) 43.6 (12.7) 15.5 Total $ 1,158.4 $ 136.0 $ (662.4) $ 632.0 $ (811.2) $ (47.4) $ 673.8 $ (184.8) $ 447.2 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022 follows: 2023 2022 Prepaid expenses $ 135.0 $ 114.3 Inventories 100.0 96.6 Other non-trade receivables 53.9 59.8 Reinsurance receivable 33.4 31.9 Prepaid fees for cloud-based hosting arrangements, current 14.0 14.4 Income taxes receivable 10.8 214.0 Derivative and hedging assets 10.5 — Other current assets 3.6 5.5 Total $ 361.2 $ 536.5 Other Assets A summary of other assets as of September 30, 2023 and December 31, 2022 follows: 2023 2022 Investments $ 371.6 $ 281.4 Operating right-of-use lease assets 238.0 275.1 Deferred compensation plan 104.8 100.6 Derivative and hedging assets 110.3 105.8 Reinsurance receivable 86.7 84.1 Deferred contract costs and sales commissions 82.2 80.2 Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements 58.8 51.4 Amounts recoverable for capping, closure and post-closure obligations 22.1 20.5 Deferred financing costs 4.0 5.1 Other 23.3 21.3 Total $ 1,101.8 $ 1,025.5 |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES Other Accrued Liabilities A summary of other accrued liabilities as of September 30, 2023 and December 31, 2022 follows: 2023 2022 Accrued payroll and benefits $ 293.6 $ 342.6 Insurance reserves, current 214.2 187.5 Accrued fees and taxes 179.7 168.5 Accrued dividends 168.5 156.4 Current tax liabilities 97.9 2.1 Operating right-of-use lease liabilities, current 52.5 57.9 Ceded insurance reserves, current 35.3 32.0 Accrued professional fees and legal settlement reserves 14.7 8.6 Derivative and hedging liabilities 14.4 1.2 Other 150.8 101.5 Total $ 1,221.6 $ 1,058.3 Other Long-Term Liabilities A summary of other long-term liabilities as of September 30, 2023 and December 31, 2022 follows: 2023 2022 Operating right-of-use lease liabilities $ 195.7 $ 238.0 Deferred compensation plan liability 102.6 98.6 Derivative and hedging liabilities 96.9 99.7 Ceded insurance reserves 84.8 84.1 Contingent purchase price and acquisition holdbacks 59.3 60.5 Withdrawal liability - multiemployer pension funds 19.7 20.0 Other 36.7 59.8 Total $ 595.7 $ 660.7 |
Landfill and Environmental Cost
Landfill and Environmental Costs | 9 Months Ended |
Sep. 30, 2023 | |
Environmental Remediation Obligations [Abstract] | |
LANDFILL AND ENVIRONMENTAL COSTS | LANDFILL AND ENVIRONMENTAL COSTS As of September 30, 2023, we owned or operated 208 active landfills with total available disposal capacity estimated to be 5.1 billion in-place cubic yards. Additionally, we had post-closure responsibility for 126 closed landfills. Accrued Landfill and Environmental Costs A summary of accrued landfill and environmental liabilities as of September 30, 2023 and December 31, 2022 follows: 2023 2022 Landfill final capping, closure and post-closure liabilities $ 1,867.7 $ 1,786.4 Environmental remediation 502.0 487.5 Total accrued landfill and environmental costs 2,369.7 2,273.9 Less: current portion (144.1) (132.6) Long-term portion $ 2,225.6 $ 2,141.3 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 nine months ended September 30, 2023 and 2022: 2023 2022 Asset retirement obligation liabilities, beginning of year $ 1,786.4 $ 1,507.3 Non-cash additions 46.4 43.2 Acquisitions, net of divestitures and other adjustments 11.8 88.5 Asset retirement obligation adjustments (9.6) 7.2 Payments (40.5) (35.6) Accretion expense 73.2 66.9 Asset retirement obligation liabilities, end of period 1,867.7 1,677.5 Less: current portion (79.1) (71.6) Long-term portion $ 1,788.6 $ 1,605.9 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 September 30, 2023 would be approximately $369 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 nine months ended September 30, 2023 and 2022: 2023 2022 Environmental remediation liabilities, beginning of year $ 487.5 $ 454.9 Payments (31.4) (37.4) Accretion expense (non-cash interest expense) 13.5 13.4 Acquisitions, net of divestitures and other adjustments 32.4 102.5 Environmental remediation liabilities, end of period 502.0 533.4 Less: current portion (65.0) (55.3) Long-term portion $ 437.0 $ 478.1 Bridgeton Landfill. During the nine months ended September 30, 2023, we paid $9.4 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 September 30, 2023, the remediation liability recorded for this site was $77.8 million, of which approximately $6 million is expected to be paid during the remainder of 2023. 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 | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The carrying value of our credit facilities, finance leases and long-term debt as of September 30, 2023 and December 31, 2022 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. September 30, 2023 December 31, 2022 Maturity Interest Rate Principal Adjustments Carrying Value Principal Adjustments Carrying Value Credit facilities: Uncommitted Credit Facility Variable $ 9.9 $ — $ 9.9 $ — $ — $ — $3.0 billion - August 2026 Variable 154.4 — 154.4 250.0 — 250.0 Term Loan Variable 700.0 — 700.0 1,000.0 — 1,000.0 Commercial Paper Variable 523.0 (0.2) 522.8 1,000.0 (1.8) 998.2 Senior notes: May 2023 4.750 — — — 300.0 (2.5) 297.5 August 2024 2.500 900.0 (1.7) 898.3 900.0 (3.0) 897.0 March 2025 3.200 500.0 (1.0) 499.0 500.0 (1.6) 498.4 November 2025 0.875 350.0 (1.4) 348.6 350.0 (1.9) 348.1 July 2026 2.900 500.0 (1.8) 498.2 500.0 (2.2) 497.8 November 2027 3.375 650.0 (2.6) 647.4 650.0 (3.1) 646.9 May 2028 3.950 800.0 (9.4) 790.6 800.0 (10.7) 789.3 April 2029 4.875 400.0 (4.7) 395.3 — — — March 2030 2.300 600.0 (4.7) 595.3 600.0 (5.2) 594.8 February 2031 1.450 650.0 (6.5) 643.5 650.0 (7.1) 642.9 February 2032 1.750 750.0 (5.6) 744.4 750.0 (6.0) 744.0 March 2033 2.375 700.0 (6.7) 693.3 700.0 (7.1) 692.9 April 2034 5.000 800.0 (10.9) 789.1 — — — March 2035 6.086 181.9 (11.7) 170.2 181.9 (12.2) 169.7 March 2040 6.200 399.9 (3.3) 396.6 399.9 (3.4) 396.5 May 2041 5.700 385.7 (4.8) 380.9 385.7 (4.8) 380.9 March 2050 3.050 400.0 (6.8) 393.2 400.0 (7.0) 393.0 Debentures: September 2035 7.400 148.1 (29.1) 119.0 148.1 (30.0) 118.1 Tax-exempt: 2024 - 2053 3.625 - 4.375 1,289.1 (8.6) 1,280.5 1,189.1 (7.1) 1,182.0 Finance leases: 2024 - 2063 0.806 - 9.750 254.6 — 254.6 247.5 — 247.5 Total Debt $ 12,046.6 $ (121.5) 11,925.1 $ 11,902.2 $ (116.7) 11,785.5 Less: current portion (932.3) (456.0) Long-term portion $ 10,992.8 $ 11,329.5 Loss on Extinguishment of Debt During the nine months ended September 30, 2023, we incurred a loss on the early extinguishment of debt related to the early repayment of a portion of our Term Loan Facility (as defined below). We incurred non-cash charges related to the proportional share of unamortized deferred issuance costs of $0.2 million. Credit Facilities Uncommitted Credit Facility In January 2022, we entered into a $200.0 million unsecured uncommitted revolving credit facility (the 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 September 30, 2023, we had $9.9 million of borrowings outstanding under our Uncommitted Credit Facility. As of December 31, 2022, we had no borrowings outstanding under our Uncommitted Credit Facility. 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. In February 2023, we entered into Amendment No. 1 to the Credit Facility (the Credit Facility Amendment) to add our subsidiary, USE Canada Holdings, Inc. (the Canadian Borrower), as an additional borrower under the Credit Facility. The Credit Facility Amendment provides that the aggregate of (i) all loans to the Canadian Borrower and (ii) all loans denominated in Canadian dollars cannot exceed $500 million (the Canadian Sublimit). The Canadian Sublimit is part of, and not in addition to, the aggregate commitments under the Credit Facility. Borrowings under the Credit Facility in United States dollars bear interest at a Base Rate, a daily floating SOFR or a term SOFR plus a current applicable margin of 0.910% based on our Debt Ratings (all as defined in the Credit Facility agreement). The Canadian dollar-denominated loans bear interest based on the Canadian Prime rate or the Canadian Dollar Offered Rate plus a current applicable margin of 0.910% based on our Debt Ratings. As of September 30, 2023, C$209.7 million was outstanding against the Canadian Sublimit, with an interest rate of 6.386%. 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 $154.4 million (all related to Canadian-denominated loans) and $250.0 million outstanding under the Credit Facility as of September 30, 2023 and December 31, 2022, respectively. We had $336.5 million and $347.6 million of letters of credit outstanding under the Credit Facility as of September 30, 2023 and December 31, 2022, respectively. We also had $523.0 million and $1.0 billion of principal borrowings outstanding under the commercial paper program as of September 30, 2023 and December 31, 2022, respectively. As a result, availability under our Credit Facility was $1,986.1 million and $1,402.4 million as of September 30, 2023 and December 31, 2022, respectively. Term Loan Facility On April 29, 2022, we entered into a $1.0 billion term loan facility (the 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. The weighted average interest rate for borrowings outstanding as of September 30, 2023 is 6.216%. We may prepay, without penalty, all or any part of the borrowings under the Term Loan Facility at any time. On May 2, 2022, we completed the acquisition of US Ecology using proceeds from the Term Loan Facility and borrowings under the Credit Facility. We had $700.0 million and $1.0 billion of borrowings outstanding under the Term Loan Facility as of September 30, 2023 and December 31, 2022, respectively. 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 (the Commercial Paper Cap). In August 2022, the Commercial Paper Cap was increased to $1.0 billion. The weighted average interest rate for borrowings outstanding as of September 30, 2023 is 5.447% with a weighted average maturity of 8 days. We had $523.0 million and $1.0 billion principal value of commercial paper issued and outstanding under the program as of September 30, 2023 and December 31, 2022, respectively. In the event of a failed re-borrowing, we currently have availability under our Credit Facility to fund the commercial paper program until it is re-borrowed successfully. Accordingly, we have classified these borrowings as long-term in our consolidated balance sheet as of September 30, 2023. Senior Notes In March 2023, we issued $400.0 million of 4.875% senior notes due 2029 (the 4.875% Notes) and $800.0 million of 5.000% senior notes due 2034 (the 5.000% Notes, and together, the Notes). The Notes are unsecured and unsubordinated and rank equally with our other unsecured obligations. We used the proceeds from the Notes for general corporate purposes, including the repayment of a portion of amounts outstanding under the Uncommitted Credit Facility, the Commercial Paper Program, the Credit Facility, and the Term Loan Facility. As a result of the Term Loan Facility repayment, we incurred a non-cash loss on the early extinguishment of debt related to the ratable portion of unamortized deferred issuance costs of $0.2 million. 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. These swap agreements settled in May 2023 along with our 4.750% Notes and are no longer included in our consolidated balance sheet. 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 December 31, 2022, these free-standing derivatives were reflected at their fair value of a $1.0 million liability and were included in other accrued liabilities in our consolidated balance sheet. These free-standing derivatives settled and matured in May 2023. For the nine months ended September 30, 2023, we recognized gains of $1.0 million, and for the three and nine months ended September 30, 2022, we recognized losses of $0.8 million and $5.2 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 December 31, 2022, the 2013 Interest Rate Swaps that were designated as fair value hedges are reflected as a $1.2 million liability and included in other accrued liabilities in our consolidated balance sheet. We recognized net interest expense of $2.2 million during the nine months ended September 30, 2023 and net interest income of $0.4 million and $3.7 million during the three and nine months ended September 30, 2022, respectively, related to net swap settlements for these interest rate swap agreements, which is included in interest expense in our consolidated statements of income. For the nine months ended September 30, 2023, we recognized losses of $2.3 million related to the impact of changes in the benchmark interest rate on the fair value of the hedged senior notes, and offsetting gains of $1.2 million on the related interest rate swaps attributable to changes in the benchmark interest rate. For the three and nine months ended September 30, 2022, we recognized gains of $0.1 million and $4.1 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 $1.0 million and $6.2 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 nine months ended September 30, 2023 and 2022 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 are accounted for as cash flow hedges. 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). During the nine months ended September 30, 2023, we recognized an unrealized gain in other comprehensive loss of $1.7 million, net of tax, related to terminated interest rate locks issued in conjunction with the issuance of our 5.000% Notes in March 2023. As of September 30, 2023 and December 31, 2022, our previously terminated interest rate locks were recorded as components of accumulated other comprehensive loss of $16.7 million and $21.4 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. For the three months ended September 30, 2023 and 2022, we recognized losses, net of tax, of $0.9 million and $1.1 million, respectively. For the nine months ended September 30, 2023 and 2022, we recognized losses, net of tax, of $2.9 million and $3.2 million, respectively, as a result of this amortization. Over the next 12 months, we expect to amortize $3.1 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, in the second quarter of 2022, we acquired and novated a floating-to-fixed interest rate swap agreement (the 2022 Interest Rate Swap) with an initial effective date of March 6, 2020, an initial notional amount of $500 million relative to our Term Loan Facility and an initial fair value of $29.1 million. The initial fair value is reclassified into earnings as non-cash interest expense on a systematic basis over the life of the interest rate swap. As of September 30, 2023, the 2022 Interest Rate Swap has a notional value of $360 million. 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 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 September 30, 2023 and December 31, 2022, the 2022 Interest Rate Swap was recorded at its fair value of $33.6 million and $36.0 million, respectively, and is included in other assets in our consolidated balance sheets. For the three and nine months ended September 30, 2023, we recognized unrealized gains of $4.1 million and $14.9 million, respectively, in accumulated other comprehensive income for the 2022 Interest Rate Swap. For the three and nine months ended September 30, 2022, we recognized unrealized gains of $9.1 million and $8.1 million, respectively, in accumulated other comprehensive income for the 2022 Interest Rate Swap. As of September 30, 2023 and December 31, 2022, the 2022 Interest Rate Swap was recorded as a gain within accumulated other comprehensive loss of $10.0 million and $5.1 million, respectively, net of tax. The effective portion of the 2022 Interest Rate Swap is amortized as an adjustment to interest expense over the life of the instrument using the effective interest method. During the three and nine months ended September 30, 2023, we recognized a gain, net of tax, of $3.2 million and $10.0 million, respectively, as a result of this amortization. For both the three and nine months ended September 30, 2022, we recognized gains, net of tax, of $1.1 million related to this amortization. Over the next 12 months, we expect to amortize approximately $7 million, net of tax, from accumulated other comprehensive loss as an offset to interest expense in the period in which payments are settled. 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 September 30, 2023, the fair value of the Extended Interest Rate Locks were assets of $87.2 million, which were included in prepaid and other current assets and other assets in our consolidated balance sheets. As of December 31, 2022, the fair value of the Extended Interest Rate Locks were assets of $69.8 million, which were included in other assets in our consolidated balance sheets. As of September 30, 2023, the fair value of the Offsetting Interest Rate Swaps were liabilities of $111.3 million, which were included in other accrued liabilities and other long-term liabilities in our consolidated balance sheets. As of December 31, 2022, the fair value of the Offsetting Interest Rate Swaps were liabilities of $99.7 million, which were included in other long-term liabilities in our consolidated balance sheets. For the three months ended September 30, 2023 and 2022, we recognized gains of $18.3 million and $40.2 million, respectively, on the change in fair value of the Extended Interest Rate Locks with offsetting losses of $18.9 million and $39.7 million, respectively, on the change in fair value of the Offsetting Interest Rate Swaps. For the nine months ended September 30, 2023 and 2022, we recognized gains of $17.7 million and $115.0 million on the change in fair value of the Extended Interest Rate Locks with offsetting losses of $19.6 million and $112.8 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 September 30, 2023, we had $1,280.5 million of certain variable rate tax-exempt financings outstanding, with maturities ranging from 2024 to 2053. As of December 31, 2022, we had $1,182.0 million of certain variable rate tax-exempt financings outstanding, with maturities ranging from 2023 to 2051. In September 2023, the California Municipal Finance Authority issued, for our benefit, $100 million of Solid Waste Disposal Revenue Bonds. The proceeds from the issuance, after deferred issuance costs, were used to fund the acquisition, construction, improvement, installation, and/or equipping of certain solid waste disposal facilities located within California. The initial remarketing period for this tax-exempt financing is 10 years. Our remaining 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 September 30, 2023 and December 31, 2022. Finance Leases |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate, exclusive of non-controlling interests, for the three and nine months ended September 30, 2023 was 20.8% and 24.4%, respectively. Our effective tax rate, exclusive of non-controlling interests, for the three and nine months ended September 30, 2022 was 17.9% and 21.8%, respectively. Our effective tax rate for the nine months ended September 30, 2023 reflected benefits of $20.6 million from tax settlements, $7.9 million from investments in solar energy assets qualifying for federal tax credits under Section 48 of the Internal Revenue Code and $6.8 million due to the realization of additional federal and state benefits as well as adjustments to deferred taxes due to the completion of our 2022 tax returns. Our effective tax rate for the nine months ended September 30, 2022 reflected benefits of $60.2 million from investments in solar energy assets qualifying for tax credits under Section 48 of the Internal Revenue Code and $6.8 million due to the realization of additional federal and state benefits as well as adjustments to deferred taxes due to the completion of our 2021 tax returns. For the nine months ended September 30, 2023 and 2022, net cash paid for income taxes was $137.9 million and $90.5 million, respectively. 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 September 30, 2023, the valuation allowance associated with our state loss carryforwards was approximately $44.1 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 these examinations. The federal statute of limitations applicable to our federal tax returns has passed for all years prior to 2015. For tax years 2015 to 2018 we have resolved all open issues with IRS Appeals while the applicable statutes of limitation will expire later in 2023 and early 2024. We are currently under state examination or administrative review in various state jurisdictions for tax years 2012 through 2021. 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 September 30, 2023, 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 September 30, 2023, we accrued a liability for penalties of $0.3 million and a liability for interest (including interest on penalties) of $12.4 million related to our uncertain tax positions. |
Stock Repurchases, Dividends an
Stock Repurchases, Dividends and Earnings per Share | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE | STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE Available Shares We currently have approximately 11.7 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. In October 2023, our Board of Directors approved a $3.0 billion share repurchase authorization effective starting January 1, 2024 and extending through December 31, 2026. 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 nine months ended September 30, 2023 and 2022 follows (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Number of shares repurchased 1.3 — 1.3 1.6 Amount paid $ 190.4 $ — $ 190.4 $ 203.5 Weighted average cost per share $ 146.89 $ — $ 146.89 $ 124.02 As of September 30, 2023, there were less than 0.1 million repurchased shares pending settlement, resulting in an associated $10.7 million of share repurchases unpaid and included within other accrued liabilities. As of September 30, 2022, there were no repurchased shares pending settlement. As of September 30, 2023, the remaining authorized purchase capacity under our October 2020 repurchase program was $1.4 billion. Dividends In July 2023, our Board of Directors approved a quarterly dividend of $0.535 per share. Cash dividends declared were $481.6 million for the nine months ended September 30, 2023. As of September 30, 2023, we recorded a quarterly dividend payable of $168.5 million to shareholders of record at the close of business on October 2, 2023. 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 nine months ended September 30, 2023 and 2022 are calculated as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Basic earnings per share: Net income attributable to Republic Services, Inc. $ 480,169 $ 416,924 $ 1,291,419 $ 1,140,836 Weighted average common shares outstanding 316,062 316,506 316,541 316,527 Basic earnings per share $ 1.52 $ 1.32 $ 4.08 $ 3.60 Diluted earnings per share: Net income attributable to Republic Services, Inc. $ 480,169 $ 416,924 $ 1,291,419 $ 1,140,836 Weighted average common shares outstanding 316,062 316,506 316,541 316,527 Effect of dilutive securities: Unvested RSU awards 112 144 96 161 Unvested PSU awards 382 396 366 380 Weighted average common and common equivalent shares outstanding 316,556 317,046 317,003 317,068 Diluted earnings per share $ 1.52 $ 1.32 $ 4.07 $ 3.60 During each of the three and nine months ended September 30, 2023 and 2022, there were less than 0.1 million antidilutive securities outstanding. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 follows: Cash Flow Hedges Defined Benefit Pension Items Foreign Currency Translation Total Balance as of December 31, 2022 $ (16.3) $ 9.2 $ (5.0) $ (12.1) Other comprehensive income (loss) before reclassifications 16.6 0.2 (0.1) 16.7 Amounts reclassified from accumulated other comprehensive loss (7.1) — — (7.1) Net current period other comprehensive income (loss) 9.5 0.2 (0.1) 9.6 Balance as of September 30, 2023 $ (6.8) $ 9.4 $ (5.1) $ (2.5) A summary of reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2023 and 2022 follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Statement where Net Income is Presented Gain (loss) on cash flow hedges: Terminated interest rate locks $ (1.2) $ (1.5) $ (3.9) $ (4.4) Interest expense 2022 interest rate swap 4.3 1.5 13.5 1.5 Interest expense Total before tax 3.1 — 9.6 (2.9) Tax (provision) benefit (0.8) — (2.5) 0.8 Total income (loss) reclassified into earnings, net of tax $ 2.3 $ — $ 7.1 $ (2.1) |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 and 2022 follows (in millions): Classification and amount of gain (loss) recognized in income on hedging relationships and derivative instruments Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 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 $ (127.6) $ (105.2) $ (378.8) $ (282.7) The effects of fair value and cash flow hedging relationships in Subtopic 815-20: (Loss) gain on fair value hedging relationships: Interest rate swaps: Net swap settlements $ — $ 0.4 $ (2.2) $ 3.7 Net periodic (loss) earnings $ — $ (0.9) $ (1.1) $ (2.1) (Loss) gain on cash flow hedging relationships: Amount of (loss) gain reclassified from accumulated other comprehensive loss into earnings, net of tax: Interest rate swap locks $ (0.9) $ (1.1) $ (2.9) $ (3.2) 2022 interest rate swap $ 3.2 $ 1.1 $ 10.0 $ 1.1 The effects of derivative instruments not in Subtopic 815-20: Gain (loss) on free-standing derivative instruments: Interest rate swaps: Gain (loss) on change in fair value of free-standing derivative instruments $ — $ (0.8) $ 1.0 $ (5.2) Interest rate contract: Net (loss) gain on change in fair value of free-standing derivative instruments $ (0.6) $ 0.5 $ (1.9) $ 2.2 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 September 30, 2023 and December 31, 2022, our assets and liabilities that are measured at fair value on a recurring basis include the following: September 30, 2023 Fair Value Carrying Amount Total Quoted Significant Significant Assets: Money market mutual funds $ 41.9 $ 41.9 $ 41.9 $ — $ — Bonds - restricted cash and marketable securities and other assets 57.3 57.3 — 57.3 — Derivative and hedging assets - prepaid and other current assets and other assets 120.8 120.8 — 120.8 — Total assets $ 220.0 $ 220.0 $ 41.9 $ 178.1 $ — Liabilities: Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities $ 111.3 $ 111.3 $ — $ 111.3 $ — Contingent consideration - other accrued liabilities and other long-term liabilities 64.1 64.1 — — 64.1 Total liabilities $ 175.4 $ 175.4 $ — $ 111.3 $ 64.1 December 31, 2022 Fair Value Carrying Amount Total Quoted Significant Significant Assets: Money market mutual funds $ 38.3 $ 38.3 $ 38.3 $ — $ — Bonds - restricted cash and marketable securities and other assets 56.9 56.9 — 56.9 — Derivative and hedging assets - other assets 105.8 105.8 — 105.8 — Total assets $ 201.0 $ 201.0 $ 38.3 $ 162.7 $ — Liabilities: Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities $ 102.0 $ 102.0 $ — $ 102.0 $ — Contingent consideration - other accrued liabilities and other long-term liabilities 65.1 65.1 — — 65.1 Total liabilities $ 167.1 $ 167.1 $ — $ 102.0 $ 65.1 Total Debt The carrying value of our total debt was $11.9 billion and $11.8 billion as of September 30, 2023 and December 31, 2022, respectively, and the fair value of our total debt was $11.0 billion and $11.1 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 September 30, 2023 and December 31, 2022. 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 September 30, 2023, the Sonoma contingent consideration represents the fair value of $59.3 million payable to the County of Sonoma based on the achievement of future annual tonnage targets through the expected remaining capacity of the landfill. The potential undiscounted amount of all future contingent payments that we could be required to make under the waste management contract is estimated to be between approximately $78 million and $113 million. During the nine months ended September 30, 2023, the activity in the contingent consideration liability included accretion, which was offset by concession payments made in the ordinary course of business. There were no changes to the estimate of fair value. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3. Group 1 is our recycling and solid waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and solid waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada. Group 3 is our environmental solutions business operating primarily in geographic areas located across the United States and Canada. These groups are presented below as our reportable segments, which each provide integrated environmental services, including but not limited to collection, transfer, recycling, and disposal. Adjusted EBITDA is the single financial measure our chief operating decision maker (CODM) uses to evaluate operating segment profitability and determine resource allocations. Summarized financial information concerning our reportable segments for the three months ended September 30, 2023 and 2022 follows: Group 1 Group 2 Recycling & Solid Waste Subtotal Group 3 Corporate entities and other Total Three Months Ended September 30, 2023 Gross Revenue $ 2,000.3 $ 1,927.0 $ 3,927.3 $ 425.2 $ 61.7 $ 4,414.2 Intercompany Revenue (294.6) (261.2) (555.8) (15.3) (17.2) (588.3) Revenue allocations 25.7 23.9 49.6 (5.1) (44.5) — Net Revenue $ 1,731.4 $ 1,689.7 $ 3,421.1 $ 404.8 $ — $ 3,825.9 Adjusted EBITDA $ 553.8 $ 500.2 $ 1,054.0 $ 91.7 $ — $ 1,145.7 Capital Expenditures $ 165.4 $ 140.7 $ 306.1 $ 25.2 $ 37.7 $ 369.0 Total Assets $ 13,112.7 $ 10,838.5 $ 23,951.3 $ 4,011.0 $ 2,080.6 $ 30,042.8 Three Months Ended September 30, 2022 Gross Revenue $ 1,840.6 $ 1,837.4 $ 3,678.0 $ 411.0 $ 64.3 $ 4,153.3 Intercompany Revenue (281.3) (246.7) (528.0) (11.3) (16.2) (555.5) Revenue allocations 25.8 24.8 50.6 (2.5) (48.1) — Net Revenue $ 1,585.1 $ 1,615.5 $ 3,200.6 $ 397.2 $ — $ 3,597.8 Adjusted EBITDA $ 510.6 $ 466.1 $ 976.7 $ 74.6 $ — $ 1,051.3 Capital Expenditures $ 133.5 $ 115.1 $ 248.6 $ 29.2 $ (0.3) $ 277.5 Total Assets $ 12,232.0 $ 10,303.0 $ 22,535.0 $ 3,991.7 $ 1,874.3 $ 28,401.0 Summarized financial information concerning our reportable segments for the nine months ended September 30, 2023 and 2022 follows: Group 1 Group 2 Recycling & Solid Waste Subtotal Group 3 Corporate entities and other Total Nine Months Ended September 30, 2023 Gross Revenue $ 5,774.3 $ 5,653.2 $ 11,427.5 $ 1,280.4 $ 174.8 $ 12,882.7 Intercompany Revenue (881.1) (763.5) (1,644.6) (47.3) (57.9) (1,749.8) Revenue allocations 71.0 67.6 138.6 (21.7) (116.9) — Net Revenue $ 4,964.2 $ 4,957.3 $ 9,921.5 $ 1,211.4 $ — $ 11,132.9 Adjusted EBITDA $ 1,570.4 $ 1,464.5 $ 3,034.9 $ 267.0 $ — $ 3,301.9 Capital Expenditures $ 422.0 $ 384.8 $ 806.8 $ 66.4 $ 210.0 $ 1,083.2 Total Assets $ 13,112.7 $ 10,838.5 $ 23,951.3 $ 4,011.0 $ 2,080.6 $ 30,042.8 Nine Months Ended September 30, 2022 Gross Revenue $ 5,306.1 $ 5,261.3 $ 10,567.4 $ 827.8 $ 181.7 $ 11,576.9 Intercompany Revenue (815.2) (712.9) (1,528.1) (32.8) (34.5) (1,595.4) Revenue allocations 77.4 74.1 151.5 (4.3) (147.2) — Net Revenue $ 4,568.3 $ 4,622.5 $ 9,190.8 $ 790.7 $ — $ 9,981.5 Adjusted EBITDA $ 1,491.3 $ 1,333.9 $ 2,825.2 $ 139.1 $ — $ 2,964.3 Capital Expenditures $ 376.5 $ 329.2 $ 705.7 $ 80.4 $ 138.7 $ 924.8 Total Assets $ 12,232.0 $ 10,303.0 $ 22,535.0 $ 3,991.7 $ 1,874.3 $ 28,401.0 Corporate functions include legal, tax, treasury, information technology, risk management, human resources, closed landfills, and other administrative functions. National Accounts revenue included in Corporate entities and other represents the portion of revenue generated from nationwide and regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local operators. Revenue and overhead costs of Corporate entities and other are either specifically assigned or allocated on a rational and consistent basis among our reportable segments to calculate Adjusted EBITDA. As presented in the tables below, Adjusted EBITDA reflects certain adjustments for US Ecology, Inc., acquisition, integration and deal costs, (income) losses from unconsolidated equity method investments, losses on extinguishment of debt, adjustments to withdrawal liabilities for a multiemployer pension fund and restructuring expenses. This presentation is consistent with how our CODM reviews results of operations to make resource allocation decisions. Intercompany revenue reflects transactions within and between segments that generally are made on a basis intended to reflect the market value of such services. Capital expenditures for Corporate entities and other primarily include vehicle inventory acquired but not yet assigned to operating locations and facilities. A reconciliation of the Company's single measure of segment profitability (segment Adjusted EBITDA) to Income before income tax provision in the Consolidated Statements of Net Income is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Group 1 Adjusted EBITDA $ 553.8 $ 510.6 $ 1,570.4 $ 1,491.3 Group 2 Adjusted EBITDA 500.2 466.1 1,464.5 1,333.9 Group 3 Adjusted EBITDA 91.7 74.6 267.0 139.1 Total Adjusted EBITDA 1,145.7 1,051.3 3,301.9 2,964.3 Other (income) expense, net (1.3) 0.3 (3.2) 6.5 Interest income (2.0) (0.8) (5.0) (2.0) Interest expense 127.6 105.2 378.8 282.7 Depreciation, amortization and depletion 382.3 353.9 1,099.4 1,001.8 Accretion 24.6 22.8 73.2 66.9 (Income) loss from unconsolidated equity method investment (2.8) 51.8 (0.2) 69.2 Loss on extinguishment of debt and other related costs — — 0.2 — Restructuring charges 6.3 6.8 27.3 18.8 Adjustment to withdrawal liability for a multiemployer pension fund — — — 2.2 US Ecology, Inc. acquisition integration and deal costs 6.2 8.7 24.3 65.4 Gain on business divestitures and impairments, net (1.5) (5.2) (1.5) (5.3) Income before income taxes $ 606.3 $ 507.8 $ 1,708.6 $ 1,458.1 |
Revenue and Credit Losses
Revenue and Credit Losses | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 and 2022 (in millions of dollars and as a percentage of revenue): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Collection: Residential $ 718.2 18.8 % $ 680.9 18.9 % $ 2,103.4 18.9 % $ 1,963.0 19.7 % Small-container 1,126.3 29.4 1,021.8 28.4 3,270.2 29.4 2,912.9 29.2 Large-container 753.0 19.7 709.6 19.7 2,192.4 19.7 2,018.0 20.2 Other 19.0 0.5 14.6 0.4 51.9 0.5 40.3 0.4 Total collection 2,616.5 68.4 2,426.9 67.4 7,617.9 68.5 6,934.2 69.5 Transfer 444.3 412.8 1,280.5 1,183.5 Less: intercompany (238.1) (223.5) (703.3) (637.5) Transfer, net 206.2 5.4 189.3 5.3 577.2 5.2 546.0 5.5 Landfill 743.2 703.6 2,172.4 2,019.7 Less: intercompany (306.9) (291.4) (912.6) (851.9) Landfill, net 436.3 11.4 412.2 11.5 1,259.8 11.3 1,167.8 11.7 Environmental solutions 424.0 411.0 1,274.0 827.8 Less: intercompany (19.2) (13.8) (62.5) (37.1) Environmental solutions, net 404.8 10.6 397.2 11.0 1,211.5 10.9 790.7 7.9 Other: Recycling processing and commodity sales 76.3 2.0 86.9 2.4 226.6 2.0 300.4 3.0 Other non-core 85.8 2.2 85.3 2.4 239.9 2.1 242.4 2.4 Total other 162.1 4.2 172.2 4.8 466.5 4.1 542.8 5.4 Total revenue $ 3,825.9 100.0 % $ 3,597.8 100.0 % $ 11,132.9 100.0 % $ 9,981.5 100.0 % 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. 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, 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, treated, 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. Additionally, 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. Environmental solutions revenue is primarily generated from the fees we charge for the collection, treatment, consolidation, disposal and recycling of hazardous and non-hazardous waste, field and industrial services, equipment rental, emergency response and standby services and in-plant services, such as transportation and logistics, including at our transfer, storage and disposal facilities (TSDF). Activity for this service line varies across markets and reflects the regulatory environment, pricing and disposal alternatives available in any given market. Revenue recognized is variable in nature and primarily based on the volume and type of waste accepted or processed during the period. For certain field and industrial services contracts, we have a right to consideration from our customers in an amount that corresponds directly with the value to the customer of the Company's performance completed to date. Therefore, we have applied the practical expedient to recognize revenue in the amount to which we have the right to invoice. Deferred Revenue 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, 2022 was recognized as revenue during the nine months ended September 30, 2023 when the service was performed. 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 September 30, 2023 and December 31, 2022, we recognized $82.2 million and $80.2 million, respectively, of deferred contract costs and capitalized sales commissions. During the three and nine months ended September 30, 2023, we amortized $3.5 million and $10.8 million, respectively, of capitalized sales commissions to selling, general and administrative expenses and we amortized $1.2 million and $4.0 million, respectively, of other deferred contract costs as a reduction of revenue. During the three and nine months ended September 30, 2022, we amortized $3.2 million and $10.0 million, respectively, of capitalized sales commissions to selling, general and administrative expenses and we amortized $1.4 million and $4.4 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 nine months ended September 30, 2023 and 2022: 2023 2022 Balance at beginning of year $ 51.9 $ 38.5 Additions charged to expense 38.6 27.8 Accounts written-off (7.0) (16.9) Balance at end of period $ 83.5 $ 49.4 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
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 $16 million relating to our outstanding legal proceedings as of September 30, 2023. 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 $9 million higher than the amount recorded as of September 30, 2023. 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: September 30, 2023 December 31, 2022 September 30, 2022 December 31, 2021 Cash and cash equivalents $ 157.5 $ 143.4 $ 81.4 $ 29.0 Restricted cash and marketable securities 153.3 127.6 121.7 139.0 Less: restricted marketable securities (57.0) (56.7) (55.3) (62.4) Cash, cash equivalents, restricted cash and restricted cash equivalents $ 253.8 $ 214.3 $ 147.8 $ 105.6 Our restricted cash and marketable securities includes amounts 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: September 30, 2023 December 31, 2022 Capping, closure and post-closure obligations $ 43.0 $ 39.1 Insurance 110.3 88.5 Total restricted cash and marketable securities $ 153.3 $ 127.6 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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 480,169 | $ 416,924 | $ 1,291,419 | $ 1,140,836 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 acquisitions. 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, 2022. Our actual results may differ significantly from our estimates. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards Adopted Disclosure of Supplier Finance Program Obligations In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The ASU requires buyers to disclose information about their supplier finance programs. Interim and annual requirements include the disclosure of outstanding amounts under the obligations as of the end of the reporting period, and annual requirements include a rollforward of those obligations for the annual reporting period, as well as a description of payment and other key terms of the programs. This update is effective for annual periods beginning after December 15, 2022, and interim periods within those fiscal years, except for the requirement to disclose rollforward information, which is effective for fiscal years beginning after December 15, 2023. The adoption of ASU 2022-04 on January 1, 2023 did not have a material impact on our consolidated financial statements. Through September 30, 2023, certain of our vendors chose to opt into our vendor supply finance agreement. This agreement allows a vendor to choose, on an invoice by invoice basis, to receive an earlier payment instead of a payment based on its original contracted terms (which, depending on the vendor, could extend up to 90 days or longer). As of September 30, 2023 and December 31, 2022, the amounts outstanding under these programs were not material. Accounting Standards Updates Issued but not yet Adopted Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative |
Business Acquisitions, Invest_2
Business Acquisitions, Investments and Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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: 2023 2022 Purchase price: Cash used in acquisitions, net of cash acquired of $15.2 and $66.6, respectively $ 938.0 $ 2,583.2 Holdbacks 9.4 12.6 Fair value, future minimum finance lease payments 0.6 15.6 Total $ 948.0 $ 2,611.4 Allocated as follows: Accounts receivable $ 25.5 $ 249.2 Prepaid expenses 0.9 15.6 Landfill development costs 0.5 495.7 Property and equipment 223.9 730.6 Operating right-of-use lease assets 3.4 55.4 Interest rate swap — 29.1 Other assets 0.1 42.3 Inventory 2.1 11.6 Accounts payable (5.6) (108.9) Deferred revenue (8.2) (27.7) Environmental remediation liabilities (5.6) (92.9) Closure and post-closure liabilities (10.5) (89.3) Operating right-of-use lease liabilities (3.4) (55.8) Deferred income tax liabilities (23.6) (151.0) Other liabilities (0.3) (54.7) Fair value of tangible assets acquired and liabilities assumed 199.2 1,049.2 Excess purchase price to be allocated $ 748.8 $ 1,562.2 Excess purchase price allocated as follows: Other intangible assets $ 136.0 $ 169.6 Goodwill 612.8 1,392.6 Total allocated $ 748.8 $ 1,562.2 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2022 Acquisitions Divestitures Adjustments to Acquisitions Balance as of September 30, 2023 Group 1 $ 6,637.9 $ 445.5 $ — $ (0.9) $ 7,082.5 Group 2 6,238.3 167.3 (0.6) 0.9 6,405.9 Group 3 1,575.3 — — 227.0 1,802.3 Total $ 14,451.5 $ 612.8 $ (0.6) $ 227.0 $ 15,290.7 |
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, 2022 Acquisitions Adjustments and Other Balance as of September 30, 2023 Balance as of December 31, 2022 Additions Charged to Expense Adjustments and Other Balance as of September 30, 2023 Other Intangible Assets, Net as of September 30, 2023 Customer relationships $ 1,013.5 $ 133.1 $ (572.6) $ 574.0 $ (709.1) $ (37.5) $ 590.5 $ (156.1) $ 417.9 Non-compete agreements 67.9 1.6 (39.7) 29.8 (50.9) (4.8) 39.7 (16.0) 13.8 Other intangible assets 77.0 1.3 (50.1) 28.2 (51.2) (5.1) 43.6 (12.7) 15.5 Total $ 1,158.4 $ 136.0 $ (662.4) $ 632.0 $ (811.2) $ (47.4) $ 673.8 $ (184.8) $ 447.2 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022 follows: 2023 2022 Prepaid expenses $ 135.0 $ 114.3 Inventories 100.0 96.6 Other non-trade receivables 53.9 59.8 Reinsurance receivable 33.4 31.9 Prepaid fees for cloud-based hosting arrangements, current 14.0 14.4 Income taxes receivable 10.8 214.0 Derivative and hedging assets 10.5 — Other current assets 3.6 5.5 Total $ 361.2 $ 536.5 |
Summary of other assets | A summary of other assets as of September 30, 2023 and December 31, 2022 follows: 2023 2022 Investments $ 371.6 $ 281.4 Operating right-of-use lease assets 238.0 275.1 Deferred compensation plan 104.8 100.6 Derivative and hedging assets 110.3 105.8 Reinsurance receivable 86.7 84.1 Deferred contract costs and sales commissions 82.2 80.2 Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements 58.8 51.4 Amounts recoverable for capping, closure and post-closure obligations 22.1 20.5 Deferred financing costs 4.0 5.1 Other 23.3 21.3 Total $ 1,101.8 $ 1,025.5 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other accrued liabilities | A summary of other accrued liabilities as of September 30, 2023 and December 31, 2022 follows: 2023 2022 Accrued payroll and benefits $ 293.6 $ 342.6 Insurance reserves, current 214.2 187.5 Accrued fees and taxes 179.7 168.5 Accrued dividends 168.5 156.4 Current tax liabilities 97.9 2.1 Operating right-of-use lease liabilities, current 52.5 57.9 Ceded insurance reserves, current 35.3 32.0 Accrued professional fees and legal settlement reserves 14.7 8.6 Derivative and hedging liabilities 14.4 1.2 Other 150.8 101.5 Total $ 1,221.6 $ 1,058.3 |
Summary of other long-term liabilities | A summary of other long-term liabilities as of September 30, 2023 and December 31, 2022 follows: 2023 2022 Operating right-of-use lease liabilities $ 195.7 $ 238.0 Deferred compensation plan liability 102.6 98.6 Derivative and hedging liabilities 96.9 99.7 Ceded insurance reserves 84.8 84.1 Contingent purchase price and acquisition holdbacks 59.3 60.5 Withdrawal liability - multiemployer pension funds 19.7 20.0 Other 36.7 59.8 Total $ 595.7 $ 660.7 |
Landfill and Environmental Co_2
Landfill and Environmental Costs (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of accrued landfill and environmental costs | A summary of accrued landfill and environmental liabilities as of September 30, 2023 and December 31, 2022 follows: 2023 2022 Landfill final capping, closure and post-closure liabilities $ 1,867.7 $ 1,786.4 Environmental remediation 502.0 487.5 Total accrued landfill and environmental costs 2,369.7 2,273.9 Less: current portion (144.1) (132.6) Long-term portion $ 2,225.6 $ 2,141.3 |
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 nine months ended September 30, 2023 and 2022: 2023 2022 Asset retirement obligation liabilities, beginning of year $ 1,786.4 $ 1,507.3 Non-cash additions 46.4 43.2 Acquisitions, net of divestitures and other adjustments 11.8 88.5 Asset retirement obligation adjustments (9.6) 7.2 Payments (40.5) (35.6) Accretion expense 73.2 66.9 Asset retirement obligation liabilities, end of period 1,867.7 1,677.5 Less: current portion (79.1) (71.6) Long-term portion $ 1,788.6 $ 1,605.9 |
Summary of activity in environmental remediation liabilities | The following table summarizes the activity in our environmental remediation liabilities for the nine months ended September 30, 2023 and 2022: 2023 2022 Environmental remediation liabilities, beginning of year $ 487.5 $ 454.9 Payments (31.4) (37.4) Accretion expense (non-cash interest expense) 13.5 13.4 Acquisitions, net of divestitures and other adjustments 32.4 102.5 Environmental remediation liabilities, end of period 502.0 533.4 Less: current portion (65.0) (55.3) Long-term portion $ 437.0 $ 478.1 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022 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. September 30, 2023 December 31, 2022 Maturity Interest Rate Principal Adjustments Carrying Value Principal Adjustments Carrying Value Credit facilities: Uncommitted Credit Facility Variable $ 9.9 $ — $ 9.9 $ — $ — $ — $3.0 billion - August 2026 Variable 154.4 — 154.4 250.0 — 250.0 Term Loan Variable 700.0 — 700.0 1,000.0 — 1,000.0 Commercial Paper Variable 523.0 (0.2) 522.8 1,000.0 (1.8) 998.2 Senior notes: May 2023 4.750 — — — 300.0 (2.5) 297.5 August 2024 2.500 900.0 (1.7) 898.3 900.0 (3.0) 897.0 March 2025 3.200 500.0 (1.0) 499.0 500.0 (1.6) 498.4 November 2025 0.875 350.0 (1.4) 348.6 350.0 (1.9) 348.1 July 2026 2.900 500.0 (1.8) 498.2 500.0 (2.2) 497.8 November 2027 3.375 650.0 (2.6) 647.4 650.0 (3.1) 646.9 May 2028 3.950 800.0 (9.4) 790.6 800.0 (10.7) 789.3 April 2029 4.875 400.0 (4.7) 395.3 — — — March 2030 2.300 600.0 (4.7) 595.3 600.0 (5.2) 594.8 February 2031 1.450 650.0 (6.5) 643.5 650.0 (7.1) 642.9 February 2032 1.750 750.0 (5.6) 744.4 750.0 (6.0) 744.0 March 2033 2.375 700.0 (6.7) 693.3 700.0 (7.1) 692.9 April 2034 5.000 800.0 (10.9) 789.1 — — — March 2035 6.086 181.9 (11.7) 170.2 181.9 (12.2) 169.7 March 2040 6.200 399.9 (3.3) 396.6 399.9 (3.4) 396.5 May 2041 5.700 385.7 (4.8) 380.9 385.7 (4.8) 380.9 March 2050 3.050 400.0 (6.8) 393.2 400.0 (7.0) 393.0 Debentures: September 2035 7.400 148.1 (29.1) 119.0 148.1 (30.0) 118.1 Tax-exempt: 2024 - 2053 3.625 - 4.375 1,289.1 (8.6) 1,280.5 1,189.1 (7.1) 1,182.0 Finance leases: 2024 - 2063 0.806 - 9.750 254.6 — 254.6 247.5 — 247.5 Total Debt $ 12,046.6 $ (121.5) 11,925.1 $ 11,902.2 $ (116.7) 11,785.5 Less: current portion (932.3) (456.0) Long-term portion $ 10,992.8 $ 11,329.5 |
Stock Repurchases, Dividends _2
Stock Repurchases, Dividends and Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stock repurchase activity | Stock repurchase activity during the three and nine months ended September 30, 2023 and 2022 follows (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Number of shares repurchased 1.3 — 1.3 1.6 Amount paid $ 190.4 $ — $ 190.4 $ 203.5 Weighted average cost per share $ 146.89 $ — $ 146.89 $ 124.02 |
Earnings per share | Earnings per share for the three and nine months ended September 30, 2023 and 2022 are calculated as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Basic earnings per share: Net income attributable to Republic Services, Inc. $ 480,169 $ 416,924 $ 1,291,419 $ 1,140,836 Weighted average common shares outstanding 316,062 316,506 316,541 316,527 Basic earnings per share $ 1.52 $ 1.32 $ 4.08 $ 3.60 Diluted earnings per share: Net income attributable to Republic Services, Inc. $ 480,169 $ 416,924 $ 1,291,419 $ 1,140,836 Weighted average common shares outstanding 316,062 316,506 316,541 316,527 Effect of dilutive securities: Unvested RSU awards 112 144 96 161 Unvested PSU awards 382 396 366 380 Weighted average common and common equivalent shares outstanding 316,556 317,046 317,003 317,068 Diluted earnings per share $ 1.52 $ 1.32 $ 4.07 $ 3.60 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 follows: Cash Flow Hedges Defined Benefit Pension Items Foreign Currency Translation Total Balance as of December 31, 2022 $ (16.3) $ 9.2 $ (5.0) $ (12.1) Other comprehensive income (loss) before reclassifications 16.6 0.2 (0.1) 16.7 Amounts reclassified from accumulated other comprehensive loss (7.1) — — (7.1) Net current period other comprehensive income (loss) 9.5 0.2 (0.1) 9.6 Balance as of September 30, 2023 $ (6.8) $ 9.4 $ (5.1) $ (2.5) |
Schedule of reclassifications out of accumulated other comprehensive income | A summary of reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2023 and 2022 follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Statement where Net Income is Presented Gain (loss) on cash flow hedges: Terminated interest rate locks $ (1.2) $ (1.5) $ (3.9) $ (4.4) Interest expense 2022 interest rate swap 4.3 1.5 13.5 1.5 Interest expense Total before tax 3.1 — 9.6 (2.9) Tax (provision) benefit (0.8) — (2.5) 0.8 Total income (loss) reclassified into earnings, net of tax $ 2.3 $ — $ 7.1 $ (2.1) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 nine months ended September 30, 2023 and 2022 follows (in millions): Classification and amount of gain (loss) recognized in income on hedging relationships and derivative instruments Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 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 $ (127.6) $ (105.2) $ (378.8) $ (282.7) The effects of fair value and cash flow hedging relationships in Subtopic 815-20: (Loss) gain on fair value hedging relationships: Interest rate swaps: Net swap settlements $ — $ 0.4 $ (2.2) $ 3.7 Net periodic (loss) earnings $ — $ (0.9) $ (1.1) $ (2.1) (Loss) gain on cash flow hedging relationships: Amount of (loss) gain reclassified from accumulated other comprehensive loss into earnings, net of tax: Interest rate swap locks $ (0.9) $ (1.1) $ (2.9) $ (3.2) 2022 interest rate swap $ 3.2 $ 1.1 $ 10.0 $ 1.1 The effects of derivative instruments not in Subtopic 815-20: Gain (loss) on free-standing derivative instruments: Interest rate swaps: Gain (loss) on change in fair value of free-standing derivative instruments $ — $ (0.8) $ 1.0 $ (5.2) Interest rate contract: Net (loss) gain on change in fair value of free-standing derivative instruments $ (0.6) $ 0.5 $ (1.9) $ 2.2 |
Assets and liabilities measured at fair value on a recurring basis | As of September 30, 2023 and December 31, 2022, our assets and liabilities that are measured at fair value on a recurring basis include the following: September 30, 2023 Fair Value Carrying Amount Total Quoted Significant Significant Assets: Money market mutual funds $ 41.9 $ 41.9 $ 41.9 $ — $ — Bonds - restricted cash and marketable securities and other assets 57.3 57.3 — 57.3 — Derivative and hedging assets - prepaid and other current assets and other assets 120.8 120.8 — 120.8 — Total assets $ 220.0 $ 220.0 $ 41.9 $ 178.1 $ — Liabilities: Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities $ 111.3 $ 111.3 $ — $ 111.3 $ — Contingent consideration - other accrued liabilities and other long-term liabilities 64.1 64.1 — — 64.1 Total liabilities $ 175.4 $ 175.4 $ — $ 111.3 $ 64.1 December 31, 2022 Fair Value Carrying Amount Total Quoted Significant Significant Assets: Money market mutual funds $ 38.3 $ 38.3 $ 38.3 $ — $ — Bonds - restricted cash and marketable securities and other assets 56.9 56.9 — 56.9 — Derivative and hedging assets - other assets 105.8 105.8 — 105.8 — Total assets $ 201.0 $ 201.0 $ 38.3 $ 162.7 $ — Liabilities: Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities $ 102.0 $ 102.0 $ — $ 102.0 $ — Contingent consideration - other accrued liabilities and other long-term liabilities 65.1 65.1 — — 65.1 Total liabilities $ 167.1 $ 167.1 $ — $ 102.0 $ 65.1 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Summarized financial information concerning reportable segments | Summarized financial information concerning our reportable segments for the three months ended September 30, 2023 and 2022 follows: Group 1 Group 2 Recycling & Solid Waste Subtotal Group 3 Corporate entities and other Total Three Months Ended September 30, 2023 Gross Revenue $ 2,000.3 $ 1,927.0 $ 3,927.3 $ 425.2 $ 61.7 $ 4,414.2 Intercompany Revenue (294.6) (261.2) (555.8) (15.3) (17.2) (588.3) Revenue allocations 25.7 23.9 49.6 (5.1) (44.5) — Net Revenue $ 1,731.4 $ 1,689.7 $ 3,421.1 $ 404.8 $ — $ 3,825.9 Adjusted EBITDA $ 553.8 $ 500.2 $ 1,054.0 $ 91.7 $ — $ 1,145.7 Capital Expenditures $ 165.4 $ 140.7 $ 306.1 $ 25.2 $ 37.7 $ 369.0 Total Assets $ 13,112.7 $ 10,838.5 $ 23,951.3 $ 4,011.0 $ 2,080.6 $ 30,042.8 Three Months Ended September 30, 2022 Gross Revenue $ 1,840.6 $ 1,837.4 $ 3,678.0 $ 411.0 $ 64.3 $ 4,153.3 Intercompany Revenue (281.3) (246.7) (528.0) (11.3) (16.2) (555.5) Revenue allocations 25.8 24.8 50.6 (2.5) (48.1) — Net Revenue $ 1,585.1 $ 1,615.5 $ 3,200.6 $ 397.2 $ — $ 3,597.8 Adjusted EBITDA $ 510.6 $ 466.1 $ 976.7 $ 74.6 $ — $ 1,051.3 Capital Expenditures $ 133.5 $ 115.1 $ 248.6 $ 29.2 $ (0.3) $ 277.5 Total Assets $ 12,232.0 $ 10,303.0 $ 22,535.0 $ 3,991.7 $ 1,874.3 $ 28,401.0 Summarized financial information concerning our reportable segments for the nine months ended September 30, 2023 and 2022 follows: Group 1 Group 2 Recycling & Solid Waste Subtotal Group 3 Corporate entities and other Total Nine Months Ended September 30, 2023 Gross Revenue $ 5,774.3 $ 5,653.2 $ 11,427.5 $ 1,280.4 $ 174.8 $ 12,882.7 Intercompany Revenue (881.1) (763.5) (1,644.6) (47.3) (57.9) (1,749.8) Revenue allocations 71.0 67.6 138.6 (21.7) (116.9) — Net Revenue $ 4,964.2 $ 4,957.3 $ 9,921.5 $ 1,211.4 $ — $ 11,132.9 Adjusted EBITDA $ 1,570.4 $ 1,464.5 $ 3,034.9 $ 267.0 $ — $ 3,301.9 Capital Expenditures $ 422.0 $ 384.8 $ 806.8 $ 66.4 $ 210.0 $ 1,083.2 Total Assets $ 13,112.7 $ 10,838.5 $ 23,951.3 $ 4,011.0 $ 2,080.6 $ 30,042.8 Nine Months Ended September 30, 2022 Gross Revenue $ 5,306.1 $ 5,261.3 $ 10,567.4 $ 827.8 $ 181.7 $ 11,576.9 Intercompany Revenue (815.2) (712.9) (1,528.1) (32.8) (34.5) (1,595.4) Revenue allocations 77.4 74.1 151.5 (4.3) (147.2) — Net Revenue $ 4,568.3 $ 4,622.5 $ 9,190.8 $ 790.7 $ — $ 9,981.5 Adjusted EBITDA $ 1,491.3 $ 1,333.9 $ 2,825.2 $ 139.1 $ — $ 2,964.3 Capital Expenditures $ 376.5 $ 329.2 $ 705.7 $ 80.4 $ 138.7 $ 924.8 Total Assets $ 12,232.0 $ 10,303.0 $ 22,535.0 $ 3,991.7 $ 1,874.3 $ 28,401.0 |
Schedule of adjusted EBITDA and EBITDA margin | A reconciliation of the Company's single measure of segment profitability (segment Adjusted EBITDA) to Income before income tax provision in the Consolidated Statements of Net Income is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Group 1 Adjusted EBITDA $ 553.8 $ 510.6 $ 1,570.4 $ 1,491.3 Group 2 Adjusted EBITDA 500.2 466.1 1,464.5 1,333.9 Group 3 Adjusted EBITDA 91.7 74.6 267.0 139.1 Total Adjusted EBITDA 1,145.7 1,051.3 3,301.9 2,964.3 Other (income) expense, net (1.3) 0.3 (3.2) 6.5 Interest income (2.0) (0.8) (5.0) (2.0) Interest expense 127.6 105.2 378.8 282.7 Depreciation, amortization and depletion 382.3 353.9 1,099.4 1,001.8 Accretion 24.6 22.8 73.2 66.9 (Income) loss from unconsolidated equity method investment (2.8) 51.8 (0.2) 69.2 Loss on extinguishment of debt and other related costs — — 0.2 — Restructuring charges 6.3 6.8 27.3 18.8 Adjustment to withdrawal liability for a multiemployer pension fund — — — 2.2 US Ecology, Inc. acquisition integration and deal costs 6.2 8.7 24.3 65.4 Gain on business divestitures and impairments, net (1.5) (5.2) (1.5) (5.3) Income before income taxes $ 606.3 $ 507.8 $ 1,708.6 $ 1,458.1 |
Revenue and Credit Losses (Tabl
Revenue and Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table disaggregates our revenue by service line for the three and nine months ended September 30, 2023 and 2022 (in millions of dollars and as a percentage of revenue): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Collection: Residential $ 718.2 18.8 % $ 680.9 18.9 % $ 2,103.4 18.9 % $ 1,963.0 19.7 % Small-container 1,126.3 29.4 1,021.8 28.4 3,270.2 29.4 2,912.9 29.2 Large-container 753.0 19.7 709.6 19.7 2,192.4 19.7 2,018.0 20.2 Other 19.0 0.5 14.6 0.4 51.9 0.5 40.3 0.4 Total collection 2,616.5 68.4 2,426.9 67.4 7,617.9 68.5 6,934.2 69.5 Transfer 444.3 412.8 1,280.5 1,183.5 Less: intercompany (238.1) (223.5) (703.3) (637.5) Transfer, net 206.2 5.4 189.3 5.3 577.2 5.2 546.0 5.5 Landfill 743.2 703.6 2,172.4 2,019.7 Less: intercompany (306.9) (291.4) (912.6) (851.9) Landfill, net 436.3 11.4 412.2 11.5 1,259.8 11.3 1,167.8 11.7 Environmental solutions 424.0 411.0 1,274.0 827.8 Less: intercompany (19.2) (13.8) (62.5) (37.1) Environmental solutions, net 404.8 10.6 397.2 11.0 1,211.5 10.9 790.7 7.9 Other: Recycling processing and commodity sales 76.3 2.0 86.9 2.4 226.6 2.0 300.4 3.0 Other non-core 85.8 2.2 85.3 2.4 239.9 2.1 242.4 2.4 Total other 162.1 4.2 172.2 4.8 466.5 4.1 542.8 5.4 Total revenue $ 3,825.9 100.0 % $ 3,597.8 100.0 % $ 11,132.9 100.0 % $ 9,981.5 100.0 % |
Schedule of activity in allowance for doubtful accounts | The following table reflects the activity in our allowance for doubtful accounts for the nine months ended September 30, 2023 and 2022: 2023 2022 Balance at beginning of year $ 51.9 $ 38.5 Additions charged to expense 38.6 27.8 Accounts written-off (7.0) (16.9) Balance at end of period $ 83.5 $ 49.4 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 December 31, 2022 September 30, 2022 December 31, 2021 Cash and cash equivalents $ 157.5 $ 143.4 $ 81.4 $ 29.0 Restricted cash and marketable securities 153.3 127.6 121.7 139.0 Less: restricted marketable securities (57.0) (56.7) (55.3) (62.4) Cash, cash equivalents, restricted cash and restricted cash equivalents $ 253.8 $ 214.3 $ 147.8 $ 105.6 |
Summary of restricted cash and marketable securities | The following table summarizes our restricted cash and marketable securities: September 30, 2023 December 31, 2022 Capping, closure and post-closure obligations $ 43.0 $ 39.1 Insurance 110.3 88.5 Total restricted cash and marketable securities $ 153.3 $ 127.6 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 3 |
Supplier finance agreement payment term | 90 days |
Business Acquisitions, Invest_3
Business Acquisitions, Investments and Restructuring Charges - Acquisitions (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Purchase price: | |||
Cash used in acquisitions, net of cash acquired of $15.2 and $66.6, respectively | $ 1,051.1 | $ 2,847.6 | |
Excess purchase price allocated as follows: | |||
Goodwill | 15,290.7 | $ 14,451.5 | |
Series of Individually Immaterial Business Acquisitions | |||
Purchase price: | |||
Cash acquired | 15.2 | 66.6 | |
Cash used in acquisitions, net of cash acquired of $15.2 and $66.6, respectively | 938 | 2,583.2 | |
Holdbacks | 9.4 | 12.6 | |
Fair value, future minimum finance lease payments | 0.6 | 15.6 | |
Total | 948 | 2,611.4 | |
Allocated as follows: | |||
Accounts receivable | 25.5 | 249.2 | |
Prepaid expenses | 0.9 | 15.6 | |
Landfill development costs | 0.5 | 495.7 | |
Property and equipment | 223.9 | 730.6 | |
Operating right-of-use lease assets | 3.4 | 55.4 | |
Interest rate swap | 0 | 29.1 | |
Other assets | 0.1 | 42.3 | |
Inventory | 2.1 | 11.6 | |
Accounts payable | (5.6) | (108.9) | |
Deferred revenue | (8.2) | (27.7) | |
Environmental remediation liabilities | (5.6) | (92.9) | |
Closure and post-closure liabilities | (10.5) | (89.3) | |
Operating right-of-use lease liabilities | (3.4) | (55.8) | |
Deferred income tax liabilities | (23.6) | (151) | |
Other liabilities | (0.3) | (54.7) | |
Fair value of tangible assets acquired and liabilities assumed | 199.2 | 1,049.2 | |
Excess purchase price to be allocated | 748.8 | 1,562.2 | |
Excess purchase price allocated as follows: | |||
Other intangible assets | 136 | 169.6 | |
Goodwill | 612.8 | 1,392.6 | |
Total allocated | $ 748.8 | $ 1,562.2 |
Business Acquisitions, Invest_4
Business Acquisitions, Investments and Restructuring Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
May 02, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | |||||
Income (loss) from unconsolidated equity method investments | $ 2.8 | $ (51.8) | $ 0.2 | $ (69.2) | |
Restructuring charges | 6.3 | 6.8 | 27.3 | 18.8 | |
Restructuring expenditures | 32.4 | 17 | |||
Contract Termination | |||||
Business Acquisition [Line Items] | |||||
Restructuring charges | 9.5 | 9.5 | |||
Redesign Of Software Systems | |||||
Business Acquisition [Line Items] | |||||
Restructuring charges | 17.8 | 17.8 | |||
Investment Tax Credit Carryforward | |||||
Business Acquisition [Line Items] | |||||
Increase (decrease) in income taxes | (8) | (35) | (8) | (60) | |
Certain Limited Liability Companies | |||||
Business Acquisition [Line Items] | |||||
Income (loss) from unconsolidated equity method investments | (3.7) | (49.5) | (6.3) | (61.8) | |
Other Noncurrent Assets | |||||
Business Acquisition [Line Items] | |||||
Capital contributions to noncontrolling equity interest | 34 | 121 | |||
US Ecology | |||||
Business Acquisition [Line Items] | |||||
Business combination, consideration transferred | $ 2,200 | ||||
US Ecology, Inc. acquisition integration and deal costs | $ 6.2 | $ 8.7 | $ 24.3 | $ 65.4 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll forward] | |
Beginning balance | $ 14,451.5 |
Acquisitions | 612.8 |
Divestitures | (0.6) |
Adjustments to Acquisitions | 227 |
Ending balance | 15,290.7 |
Group 1 | |
Goodwill [Roll forward] | |
Beginning balance | 6,637.9 |
Acquisitions | 445.5 |
Divestitures | 0 |
Adjustments to Acquisitions | (0.9) |
Ending balance | 7,082.5 |
Group 2 | |
Goodwill [Roll forward] | |
Beginning balance | 6,238.3 |
Acquisitions | 167.3 |
Divestitures | (0.6) |
Adjustments to Acquisitions | 0.9 |
Ending balance | 6,405.9 |
Group 3 | |
Goodwill [Roll forward] | |
Beginning balance | 1,575.3 |
Acquisitions | 0 |
Divestitures | 0 |
Adjustments to Acquisitions | 227 |
Ending balance | $ 1,802.3 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Narrative (Details) | Sep. 30, 2023 |
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 | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Gross Intangible Assets | ||
Beginning balance | $ 1,158.4 | |
Acquisitions | 136 | |
Adjustments and Other | (662.4) | |
Ending balance | 632 | |
Accumulated Amortization | ||
Beginning balance | (811.2) | |
Additions Charged to Expense | (47.4) | |
Adjustments and Other | 673.8 | |
Ending balance | (184.8) | |
Other Intangible Assets, Net | 447.2 | $ 347.2 |
Customer relationships | ||
Gross Intangible Assets | ||
Beginning balance | 1,013.5 | |
Acquisitions | 133.1 | |
Adjustments and Other | (572.6) | |
Ending balance | 574 | |
Accumulated Amortization | ||
Beginning balance | (709.1) | |
Additions Charged to Expense | (37.5) | |
Adjustments and Other | 590.5 | |
Ending balance | (156.1) | |
Other Intangible Assets, Net | 417.9 | |
Non-compete agreements | ||
Gross Intangible Assets | ||
Beginning balance | 67.9 | |
Acquisitions | 1.6 | |
Adjustments and Other | (39.7) | |
Ending balance | 29.8 | |
Accumulated Amortization | ||
Beginning balance | (50.9) | |
Additions Charged to Expense | (4.8) | |
Adjustments and Other | 39.7 | |
Ending balance | (16) | |
Other Intangible Assets, Net | 13.8 | |
Other intangible assets | ||
Gross Intangible Assets | ||
Beginning balance | 77 | |
Acquisitions | 1.3 | |
Adjustments and Other | (50.1) | |
Ending balance | 28.2 | |
Accumulated Amortization | ||
Beginning balance | (51.2) | |
Additions Charged to Expense | (5.1) | |
Adjustments and Other | 43.6 | |
Ending balance | (12.7) | |
Other Intangible Assets, Net | $ 15.5 |
Other Assets - Prepaid Expenses
Other Assets - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Prepaid Expenses and Other Current Assets | ||
Prepaid expenses | $ 135 | $ 114.3 |
Inventories | 100 | 96.6 |
Other non-trade receivables | 53.9 | 59.8 |
Income taxes receivable | 10.8 | 214 |
Reinsurance receivable | 33.4 | 31.9 |
Prepaid fees for cloud-based hosting arrangements, current | 14 | 14.4 |
Derivative and hedging assets | 10.5 | 0 |
Other current assets | 3.6 | 5.5 |
Total | $ 361.2 | $ 536.5 |
Other Assets - Other Assets (De
Other Assets - Other Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Other Assets | ||
Investments | $ 371.6 | $ 281.4 |
Operating right-of-use lease assets | 238 | 275.1 |
Deferred compensation plan | 104.8 | 100.6 |
Derivative and hedging assets | 110.3 | 105.8 |
Reinsurance receivable | 86.7 | 84.1 |
Deferred contract costs and sales commissions | 82.2 | 80.2 |
Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements | 58.8 | 51.4 |
Amounts recoverable for capping, closure and post-closure obligations | 22.1 | 20.5 |
Deferred financing costs | 4 | 5.1 |
Other | 23.3 | 21.3 |
Total | $ 1,101.8 | $ 1,025.5 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Other Accrued Liabilities | ||
Accrued payroll and benefits | $ 293.6 | $ 342.6 |
Insurance reserves, current | 214.2 | 187.5 |
Accrued fees and taxes | 179.7 | 168.5 |
Accrued dividends | 168.5 | 156.4 |
Current tax liabilities | 97.9 | 2.1 |
Operating right-of-use lease liabilities, current | 52.5 | 57.9 |
Ceded insurance reserves, current | 35.3 | 32 |
Accrued professional fees and legal settlement reserves | 14.7 | 8.6 |
Derivative and hedging liabilities | 14.4 | 1.2 |
Other | 150.8 | 101.5 |
Total | 1,221.6 | 1,058.3 |
Other Long-Term Liabilities | ||
Operating right-of-use lease liabilities | 195.7 | 238 |
Deferred compensation plan liability | 102.6 | 98.6 |
Derivative and hedging liabilities | 96.9 | 99.7 |
Ceded insurance reserves | 84.8 | 84.1 |
Contingent purchase price and acquisition holdbacks | 59.3 | 60.5 |
Withdrawal liability - multiemployer pension funds | 19.7 | 20 |
Other | 36.7 | 59.8 |
Total | $ 595.7 | $ 660.7 |
Landfill and Environmental Co_3
Landfill and Environmental Costs - Narrative (Details) $ in Millions, cubicYard in Billions | 9 Months Ended | ||||
Sep. 27, 2018 USD ($) | Sep. 30, 2023 USD ($) cubicYard landfill | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Environmental Exit Cost [Line Items] | |||||
Number of active solid waste landfills | landfill | 208 | ||||
Total available disposal capacity (in cubic yards) | cubicYard | 5.1 | ||||
Number of closed landfills | landfill | 126 | ||||
Amount of aggregate potential remediation liability | $ 369 | ||||
Payments for management and monitoring of remediation area | 31.4 | $ 37.4 | |||
Remediation liability | 502 | $ 533.4 | $ 487.5 | $ 454.9 | |
Bridgeton Landfill | |||||
Environmental Exit Cost [Line Items] | |||||
Payments for management and monitoring of remediation area | 9.4 | ||||
Remediation liability | 77.8 | ||||
Remediation liability expected to be paid during the remainder of the year | $ 6 | ||||
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 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Environmental Remediation Obligations [Abstract] | ||||
Landfill final capping, closure and post-closure liabilities | $ 1,867.7 | $ 1,786.4 | $ 1,677.5 | $ 1,507.3 |
Environmental remediation | 502 | 487.5 | $ 533.4 | $ 454.9 |
Total accrued landfill and environmental costs | 2,369.7 | 2,273.9 | ||
Less: current portion | (144.1) | (132.6) | ||
Long-term portion | $ 2,225.6 | $ 2,141.3 |
Landfill and Environmental Co_5
Landfill and Environmental Costs - Final Capping, Closure and Post-Closure Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Activity in asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure | ||||
Asset retirement obligation liabilities, beginning of year | $ 1,786.4 | $ 1,507.3 | ||
Non-cash additions | 46.4 | 43.2 | ||
Acquisitions, net of divestitures and other adjustments | 11.8 | 88.5 | ||
Asset retirement obligation adjustments | (9.6) | 7.2 | ||
Payments | (40.5) | (35.6) | ||
Accretion expense | $ 24.6 | $ 22.8 | 73.2 | 66.9 |
Asset retirement obligation liabilities, end of period | 1,867.7 | 1,677.5 | 1,867.7 | 1,677.5 |
Less: current portion | (79.1) | (71.6) | (79.1) | (71.6) |
Long-term portion | $ 1,788.6 | $ 1,605.9 | $ 1,788.6 | $ 1,605.9 |
Landfill and Environmental Co_6
Landfill and Environmental Costs - Environmental Remediation Liability (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Activity in environmental remediation liabilities | ||
Environmental remediation liabilities, beginning of year | $ 487.5 | $ 454.9 |
Payments | (31.4) | (37.4) |
Accretion expense (non-cash interest expense) | 13.5 | 13.4 |
Acquisitions, net of divestitures and other adjustments | 32.4 | 102.5 |
Environmental remediation liabilities, end of period | 502 | 533.4 |
Less: current portion | (65) | (55.3) |
Long-term portion | $ 437 | $ 478.1 |
Debt - Carrying Values of Debt
Debt - Carrying Values of Debt Instruments (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Aug. 31, 2022 | May 31, 2022 | Jan. 31, 2022 | Aug. 31, 2021 | Mar. 06, 2020 |
Debt Instrument [Line Items] | |||||||
Long-term debt, gross and lease obligation | $ 12,046,600,000 | $ 11,902,200,000 | |||||
Adjustments | (121,500,000) | (116,700,000) | |||||
Total Debt | 11,925,100,000 | 11,785,500,000 | |||||
Less: current portion | (932,300,000) | (456,000,000) | |||||
Long-term portion | 10,992,800,000 | 11,329,500,000 | |||||
Credit facilities: Uncommitted Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 200,000,000 | ||||||
Principal | 9,900,000 | 0 | |||||
Adjustments | 0 | 0 | |||||
Carrying Value | 9,900,000 | 0 | |||||
Credit facilities: August 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Principal | 154,400,000 | 250,000,000 | |||||
Adjustments | 0 | 0 | |||||
Carrying Value | 154,400,000 | 250,000,000 | |||||
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 | 700,000,000 | 1,000,000,000 | |||||
Adjustments | 0 | 0 | |||||
Carrying Value | 700,000,000 | 1,000,000,000 | |||||
Credit facilities: Commercial Paper Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 500,000,000 | |||||
Principal | 523,000,000 | 1,000,000,000 | |||||
Adjustments | (200,000) | (1,800,000) | |||||
Carrying Value | $ 522,800,000 | 998,200,000 | |||||
Senior notes: May 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 4.75% | ||||||
Principal | $ 0 | 300,000,000 | |||||
Adjustments | 0 | (2,500,000) | |||||
Carrying Value | $ 0 | 297,500,000 | |||||
Senior notes: August 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 2.50% | ||||||
Principal | $ 900,000,000 | 900,000,000 | |||||
Adjustments | (1,700,000) | (3,000,000) | |||||
Carrying Value | $ 898,300,000 | 897,000,000 | |||||
Senior notes: March 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 3.20% | ||||||
Principal | $ 500,000,000 | 500,000,000 | |||||
Adjustments | (1,000,000) | (1,600,000) | |||||
Carrying Value | $ 499,000,000 | 498,400,000 | |||||
Senior notes: November 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 0.875% | ||||||
Principal | $ 350,000,000 | 350,000,000 | |||||
Adjustments | (1,400,000) | (1,900,000) | |||||
Carrying Value | $ 348,600,000 | 348,100,000 | |||||
Senior notes: July 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 2.90% | ||||||
Principal | $ 500,000,000 | 500,000,000 | |||||
Adjustments | (1,800,000) | (2,200,000) | |||||
Carrying Value | $ 498,200,000 | 497,800,000 | |||||
Senior notes: November 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 3.375% | ||||||
Principal | $ 650,000,000 | 650,000,000 | |||||
Adjustments | (2,600,000) | (3,100,000) | |||||
Carrying Value | $ 647,400,000 | 646,900,000 | |||||
Senior notes: May 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 3.95% | ||||||
Principal | $ 800,000,000 | 800,000,000 | |||||
Adjustments | (9,400,000) | (10,700,000) | |||||
Carrying Value | $ 790,600,000 | 789,300,000 | |||||
Senior notes: April 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 4.875% | ||||||
Principal | $ 400,000,000 | 0 | |||||
Adjustments | (4,700,000) | 0 | |||||
Carrying Value | $ 395,300,000 | 0 | |||||
Senior notes: March 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 2.30% | ||||||
Principal | $ 600,000,000 | 600,000,000 | |||||
Adjustments | (4,700,000) | (5,200,000) | |||||
Carrying Value | $ 595,300,000 | 594,800,000 | |||||
Senior notes: February 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 1.45% | ||||||
Principal | $ 650,000,000 | 650,000,000 | |||||
Adjustments | (6,500,000) | (7,100,000) | |||||
Carrying Value | $ 643,500,000 | 642,900,000 | |||||
Senior notes: February 2032 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 1.75% | ||||||
Principal | $ 750,000,000 | 750,000,000 | |||||
Adjustments | (5,600,000) | (6,000,000) | |||||
Carrying Value | $ 744,400,000 | 744,000,000 | |||||
Senior notes: March 2033 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 2.375% | ||||||
Principal | $ 700,000,000 | 700,000,000 | |||||
Adjustments | (6,700,000) | (7,100,000) | |||||
Carrying Value | $ 693,300,000 | 692,900,000 | |||||
Senior notes: April 2034 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 5% | ||||||
Principal | $ 800,000,000 | 0 | |||||
Adjustments | (10,900,000) | 0 | |||||
Carrying Value | $ 789,100,000 | 0 | |||||
Senior notes: March 2035 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 6.086% | ||||||
Principal | $ 181,900,000 | 181,900,000 | |||||
Adjustments | (11,700,000) | (12,200,000) | |||||
Carrying Value | $ 170,200,000 | 169,700,000 | |||||
Senior notes: March 2040 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 6.20% | ||||||
Principal | $ 399,900,000 | 399,900,000 | |||||
Adjustments | (3,300,000) | (3,400,000) | |||||
Carrying Value | $ 396,600,000 | 396,500,000 | |||||
Senior notes: May 2041 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 5.70% | ||||||
Principal | $ 385,700,000 | 385,700,000 | |||||
Adjustments | (4,800,000) | (4,800,000) | |||||
Carrying Value | $ 380,900,000 | 380,900,000 | |||||
Senior notes: March 2050 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 3.05% | ||||||
Principal | $ 400,000,000 | 400,000,000 | |||||
Adjustments | (6,800,000) | (7,000,000) | |||||
Carrying Value | $ 393,200,000 | 393,000,000 | |||||
Debentures: September 2035 | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 7.40% | ||||||
Principal | $ 148,100,000 | 148,100,000 | |||||
Adjustments | (29,100,000) | (30,000,000) | |||||
Carrying Value | 119,000,000 | 118,100,000 | |||||
Tax-exempt | |||||||
Debt Instrument [Line Items] | |||||||
Principal | 1,289,100,000 | 1,189,100,000 | |||||
Adjustments | (8,600,000) | (7,100,000) | |||||
Carrying Value | $ 1,280,500,000 | 1,182,000,000 | |||||
Tax-exempt | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 3.625% | ||||||
Tax-exempt | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 4.375% | ||||||
Finance leases | |||||||
Debt Instrument [Line Items] | |||||||
Finance leases | $ 254,600,000 | $ 247,500,000 | |||||
Finance leases | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 0.806% | ||||||
Finance leases | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 9.75% |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2023 USD ($) | Aug. 31, 2021 USD ($) extension | Nov. 30, 2020 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2024 USD ($) | Sep. 30, 2023 CAD ($) | Feb. 28, 2023 USD ($) | Dec. 31, 2022 USD ($) | Aug. 31, 2022 USD ($) | May 31, 2022 USD ($) | Apr. 29, 2022 USD ($) | Jan. 31, 2022 USD ($) | Mar. 06, 2020 USD ($) | Feb. 29, 2020 USD ($) | Aug. 31, 2019 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||||
Write-off of deferred issuance costs | $ 200,000 | |||||||||||||||||
Letters of credit utilizing availability under our credit facilities | $ 336,500,000 | $ 336,500,000 | 336,500,000 | $ 347,600,000 | ||||||||||||||
Remaining borrowing capacity | 1,986,100,000 | 1,986,100,000 | 1,986,100,000 | 1,402,400,000 | ||||||||||||||
Loss on extinguishment of debt | 0 | $ 0 | (200,000) | $ 0 | ||||||||||||||
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, after tax | 4,100,000 | 9,100,000 | 16,600,000 | 8,100,000 | ||||||||||||||
(Loss) gain on cash flow hedging relationships | 2,300,000 | 0 | 7,100,000 | (2,100,000) | ||||||||||||||
Derivative assets, noncurrent | 110,300,000 | 110,300,000 | 110,300,000 | 105,800,000 | ||||||||||||||
Interest Rate Swap | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Interest rate derivative liability at fair value | 1,200,000 | |||||||||||||||||
Gain (loss) on interest rate swaps | 1,200,000 | (1,000,000) | (6,200,000) | |||||||||||||||
Freestanding Derviatives | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Derivative liability | 1,000,000 | |||||||||||||||||
Freestanding Derviatives | Interest Expense | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Gain (loss) on change in fair value of free standing derivatives | 0 | (800,000) | 1,000,000 | (5,200,000) | ||||||||||||||
Net swap settlements | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Gain (loss) on interest rate swaps | 400,000 | (2,200,000) | 3,700,000 | |||||||||||||||
Hedged Senior Notes | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Gain (loss) on interest rate swaps | 100,000 | (2,300,000) | 4,100,000 | |||||||||||||||
Interest rate swap locks | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, after tax | (1,700,000) | |||||||||||||||||
Accumulated other comprehensive income (loss) | (16,700,000) | (16,700,000) | (16,700,000) | (21,400,000) | ||||||||||||||
Effective portion of interest rate locks amortized as an adjustment to interest expense expected over the next twelve months | 3,100,000 | |||||||||||||||||
Interest rate swap locks | Interest Expense | Cash Flow Hedging | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
(Loss) gain on cash flow hedging relationships | (900,000) | (1,100,000) | (2,900,000) | (3,200,000) | ||||||||||||||
2022 interest rate swap | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, after tax | 4,100,000 | 9,100,000 | 14,900,000 | 8,100,000 | ||||||||||||||
Accumulated other comprehensive income (loss) | (10,000,000) | (10,000,000) | (10,000,000) | (5,100,000) | ||||||||||||||
2022 interest rate swap | Interest Expense | Cash Flow Hedging | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
(Loss) gain on cash flow hedging relationships | 3,200,000 | 1,100,000 | 10,000,000 | 1,100,000 | ||||||||||||||
Extended Interest Rate Swaps | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Derivative asset | 87,200,000 | 87,200,000 | 87,200,000 | 69,800,000 | ||||||||||||||
Terminated derivative, notional amount | $ 550,000,000 | $ 375,000,000 | ||||||||||||||||
Gain (loss) on change in fair value of free-standing derivative instruments | 18,300,000 | 40,200,000 | 17,700,000 | 115,000,000 | ||||||||||||||
Offsetting Interest Rate Swap | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Derivative liabilities | 111,300,000 | 111,300,000 | 111,300,000 | 99,700,000 | ||||||||||||||
Gain (loss) on change in fair value of free-standing derivative instruments | (18,900,000) | $ (39,700,000) | (19,600,000) | $ (112,800,000) | ||||||||||||||
Revolving Credit Facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | 154,400,000 | 154,400,000 | 154,400,000 | 250,000,000 | ||||||||||||||
Uncommitted Revolver | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | $ 200,000,000 | |||||||||||||||||
Principal | 9,900,000 | 9,900,000 | 9,900,000 | 0 | ||||||||||||||
Long-term debt | 9,900,000 | 9,900,000 | 9,900,000 | 0 | ||||||||||||||
Credit facilities: August 2026 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Principal | 154,400,000 | 154,400,000 | 154,400,000 | 250,000,000 | ||||||||||||||
Long-term debt | $ 154,400,000 | $ 154,400,000 | $ 154,400,000 | 250,000,000 | ||||||||||||||
Canadian Sublimit | Revolving Credit Facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||||||||||||
Long-term debt | $ 209.7 | |||||||||||||||||
Interest rate | 6.386% | 6.386% | 6.386% | 6.386% | ||||||||||||||
Credit facilities: Commercial Paper Facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 500,000,000 | ||||||||||||||||
Principal | $ 523,000,000 | $ 523,000,000 | $ 523,000,000 | 1,000,000,000 | ||||||||||||||
Long-term debt | $ 522,800,000 | $ 522,800,000 | $ 522,800,000 | 998,200,000 | ||||||||||||||
Weighted average interest rate | 5.447% | 5.447% | 5.447% | 5.447% | ||||||||||||||
Credit facilities: Commercial Paper Facility | Weighted Average | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, term | 8 days | |||||||||||||||||
Term Loan Facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Principal | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | 1,000,000,000 | ||||||||||||||
Long-term debt | 700,000,000 | 700,000,000 | 700,000,000 | 1,000,000,000 | ||||||||||||||
Interest rate | 0.832% | |||||||||||||||||
Term Loan Facility | 2022 interest rate swap | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Derivative assets, noncurrent | 33,600,000 | 33,600,000 | 33,600,000 | 36,000,000 | ||||||||||||||
Term Loan Facility | 2022 interest rate swap | Forecast | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Effective portion of interest rate locks amortized as an adjustment to interest expense expected over the next twelve months | $ 7,000,000 | |||||||||||||||||
Term Loan Facility | US Ecology | 2022 interest rate swap | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Derivative, notional amount | 360,000,000 | 360,000,000 | 360,000,000 | $ 500,000,000 | ||||||||||||||
Derivative asset | $ 29,100,000 | |||||||||||||||||
Senior notes: May 2023 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Principal | 0 | 0 | 0 | 300,000,000 | ||||||||||||||
Long-term debt | $ 0 | $ 0 | $ 0 | 297,500,000 | ||||||||||||||
Interest rate | 4.75% | 4.75% | 4.75% | 4.75% | ||||||||||||||
Extinguishment of debt, amount | $ 250,000,000 | |||||||||||||||||
Senior notes: March 2023 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Interest rate | 5% | 5% | 5% | 5% | ||||||||||||||
Senior notes: March 2030 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Principal | $ 600,000,000 | $ 600,000,000 | $ 600,000,000 | 600,000,000 | ||||||||||||||
Long-term debt | $ 595,300,000 | $ 595,300,000 | $ 595,300,000 | 594,800,000 | ||||||||||||||
Interest rate | 2.30% | 2.30% | 2.30% | 2.30% | ||||||||||||||
Senior notes: August 2024 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Principal | $ 900,000,000 | $ 900,000,000 | $ 900,000,000 | 900,000,000 | ||||||||||||||
Long-term debt | $ 898,300,000 | $ 898,300,000 | $ 898,300,000 | 897,000,000 | ||||||||||||||
Interest rate | 2.50% | 2.50% | 2.50% | 2.50% | ||||||||||||||
Tax-exempt financings | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Principal | $ 1,289,100,000 | $ 1,289,100,000 | $ 1,289,100,000 | 1,189,100,000 | ||||||||||||||
Long-term debt | 1,280,500,000 | 1,280,500,000 | 1,280,500,000 | 1,182,000,000 | ||||||||||||||
Solid Waste Disposal Revenue Bonds | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Principal | $ 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||||
Debt instrument, term | 10 years | |||||||||||||||||
Finance leases | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Present value of lease liabilities | $ 254,600,000 | $ 254,600,000 | $ 254,600,000 | $ 247,500,000 | ||||||||||||||
Line of Credit | Revolving Credit Facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Number of available extensions | extension | 2 | |||||||||||||||||
Extension period | 1 year | |||||||||||||||||
Facility feature, increase limit | $ 1,000,000,000 | |||||||||||||||||
Basis spread | 0.91% | |||||||||||||||||
Line of Credit | Credit facilities: August 2026 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | $ 3,000,000,000 | |||||||||||||||||
Term Loan Facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Principal face amount of debt issued | $ 1,000,000,000 | |||||||||||||||||
Term Loan Facility | US Ecology | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Weighted average interest rate | 6.216% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Tax Credit Carryforward [Line Items] | ||||
Effective tax rate | 20.80% | 17.90% | 24.40% | 21.80% |
Benefits from tax settlements | $ 20.6 | |||
Investment tax credits | 7.9 | $ 60.2 | ||
Additional federal and state benefits | 6.8 | 6.8 | ||
Cash paid (refunded) for income taxes | 137.9 | $ 90.5 | ||
Liability for penalties | $ 0.3 | 0.3 | ||
Liability for interest related to uncertain tax positions | 12.4 | 12.4 | ||
State Loss Carryforwards | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred tax assets, valuation allowance | $ 44.1 | $ 44.1 |
Stock Repurchases, Dividends _3
Stock Repurchases, Dividends and Earnings per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Jul. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Oct. 26, 2023 | Dec. 31, 2022 | Oct. 31, 2020 | |
Dividends Payable [Line Items] | ||||||||||||
Reserve for stock issuance (in shares) | 11,700,000 | 11,700,000 | ||||||||||
Share repurchase authorized amount | $ 2,000 | |||||||||||
Stock repurchased and pending settlement (in shares) | 100,000 | 0 | 100,000 | 0 | ||||||||
Stock repurchased and pending settlement | $ 10.7 | $ 10.7 | ||||||||||
Remaining authorized repurchase amount | $ 1,400 | $ 1,400 | ||||||||||
Quarterly dividend declared (in dollars per share) | $ 0.535 | $ 0.535 | $ 0.495 | $ 1.525 | $ 1.415 | |||||||
Cash dividends declared | $ 168.5 | $ 156.6 | $ 156.5 | $ 156.4 | $ 145.3 | $ 145.3 | ||||||
Quarterly dividend payable | $ 168.5 | $ 168.5 | $ 156.4 | |||||||||
Antidilutive securities (in shares) | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||
Retained Earnings | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Cash dividends declared | $ 168.5 | $ 156.6 | $ 156.5 | $ 156.4 | $ 145.3 | $ 145.3 | $ 481.6 | |||||
Subsequent Event | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Share repurchase authorized amount | $ 3,000 |
Stock Repurchases, Dividends _4
Stock Repurchases, Dividends and Earnings per Share - Share Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | ||||
Number of shares repurchased (in shares) | 1,300,000 | 0 | 1,300,000 | 1,600,000 |
Amount paid | $ 190.4 | $ 0 | $ 190.4 | $ 203.5 |
Weighted average cost per share (in dollars per share) | $ 146.89 | $ 0 | $ 146.89 | $ 124.02 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic earnings per share: | ||||
Net income attributable to Republic Services, Inc. | $ 480,169 | $ 416,924 | $ 1,291,419 | $ 1,140,836 |
Weighted average common shares outstanding (in shares) | 316,062 | 316,506 | 316,541 | 316,527 |
Basic earnings per share (in dollars per share) | $ 1.52 | $ 1.32 | $ 4.08 | $ 3.60 |
Effect of dilutive securities: | ||||
Weighted average common and common equivalent shares outstanding (in shares) | 316,556 | 317,046 | 317,003 | 317,068 |
Diluted earnings per share (in dollars per share) | $ 1.52 | $ 1.32 | $ 4.07 | $ 3.60 |
Restricted stock units | ||||
Effect of dilutive securities: | ||||
Unvested awards (in shares) | 112 | 144 | 96 | 161 |
Phantom Share Units (PSUs) | ||||
Effect of dilutive securities: | ||||
Unvested awards (in shares) | 382 | 396 | 366 | 380 |
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 | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Balance at beginning of period | $ 10,204.7 | $ 9,917.3 | $ 9,686.8 | $ 9,215.8 | $ 8,984.7 | $ 8,979.7 | $ 9,686.8 | $ 8,979.7 |
Other comprehensive income (loss) before reclassifications | 16.7 | |||||||
Amounts reclassified from accumulated other comprehensive loss | (7.1) | |||||||
Net current period other comprehensive income (loss) | 4.2 | 2.6 | 2.8 | 3 | (0.1) | 1.1 | 9.6 | 4 |
Balance at end of period | 10,332.4 | $ 10,204.7 | 9,917.3 | $ 9,490.5 | $ 9,215.8 | $ 8,984.7 | 10,332.4 | $ 9,490.5 |
Total | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Balance at beginning of period | (12.1) | (12.1) | ||||||
Balance at end of period | (2.5) | (2.5) | ||||||
Cash Flow Hedges | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Balance at beginning of period | (16.3) | (16.3) | ||||||
Other comprehensive income (loss) before reclassifications | 16.6 | |||||||
Amounts reclassified from accumulated other comprehensive loss | (7.1) | |||||||
Net current period other comprehensive income (loss) | 9.5 | |||||||
Balance at end of period | (6.8) | (6.8) | ||||||
Defined Benefit Pension Items | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Balance at beginning of period | 9.2 | 9.2 | ||||||
Other comprehensive income (loss) before reclassifications | 0.2 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||||||
Net current period other comprehensive income (loss) | 0.2 | |||||||
Balance at end of period | 9.4 | 9.4 | ||||||
Foreign Currency Translation | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Balance at beginning of period | $ (5) | (5) | ||||||
Other comprehensive income (loss) before reclassifications | (0.1) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||||||
Net current period other comprehensive income (loss) | (0.1) | |||||||
Balance at end of period | $ (5.1) | $ (5.1) |
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 | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Gain (loss) on cash flow hedges: | ||||||||
Interest expense | $ (127.6) | $ (105.2) | $ (378.8) | $ (282.7) | ||||
Total before tax | 606.3 | 507.8 | 1,708.6 | 1,458.1 | ||||
Tax (provision) benefit | (126) | (90.9) | (416.9) | (317.5) | ||||
Net income | 480.3 | $ 427.6 | $ 383.9 | 416.9 | $ 371.8 | $ 351.9 | 1,291.7 | 1,140.6 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||||||
Gain (loss) on cash flow hedges: | ||||||||
Net income | 2.3 | 0 | 7.1 | (2.1) | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedges | ||||||||
Gain (loss) on cash flow hedges: | ||||||||
Total before tax | 3.1 | 0 | 9.6 | (2.9) | ||||
Tax (provision) benefit | (0.8) | 0 | (2.5) | 0.8 | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedges | Terminated interest rate locks | ||||||||
Gain (loss) on cash flow hedges: | ||||||||
Interest expense | (1.2) | (1.5) | (3.9) | (4.4) | ||||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedges | 2022 interest rate swap | ||||||||
Gain (loss) on cash flow hedges: | ||||||||
Interest expense | $ 4.3 | $ 1.5 | $ 13.5 | $ 1.5 |
Financial Instruments - Derivat
Financial Instruments - Derivative Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ (127.6) | $ (105.2) | $ (378.8) | $ (282.7) |
Amount of (loss) gain reclassified from accumulated other comprehensive loss into earnings, net of tax: | ||||
(Loss) gain on cash flow hedging relationships | 2.3 | 0 | 7.1 | (2.1) |
Net swap settlements | ||||
Interest rate swaps: | ||||
Gain (loss) on interest rate swaps | 0.4 | (2.2) | 3.7 | |
Interest Expense | Net swap settlements | Fair Value Hedging | ||||
Interest rate swaps: | ||||
Gain (loss) on interest rate swaps | 0 | 0.4 | (2.2) | 3.7 |
Interest Expense | Net periodic (loss) earnings | Fair Value Hedging | ||||
Interest rate swaps: | ||||
Gain (loss) on interest rate swaps | 0 | (0.9) | (1.1) | (2.1) |
Interest Expense | Interest rate swap locks | Cash Flow Hedging | ||||
Amount of (loss) gain reclassified from accumulated other comprehensive loss into earnings, net of tax: | ||||
(Loss) gain on cash flow hedging relationships | (0.9) | (1.1) | (2.9) | (3.2) |
Interest Expense | 2022 interest rate swap | Cash Flow Hedging | ||||
Amount of (loss) gain reclassified from accumulated other comprehensive loss into earnings, net of tax: | ||||
(Loss) gain on cash flow hedging relationships | 3.2 | 1.1 | 10 | 1.1 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | 3.2 | 1.1 | 10 | 1.1 |
Interest Expense | Freestanding Derviatives | ||||
Gain (loss) on free-standing derivative instruments: | ||||
Gain (loss) on change in fair value of free-standing derivative instruments | 0 | (0.8) | 1 | (5.2) |
Interest Expense | Interest Rate Contract | ||||
Gain (loss) on free-standing derivative instruments: | ||||
Net (loss) gain on change in fair value of free-standing derivative instruments | $ (0.6) | $ 0.5 | $ (1.9) | $ 2.2 |
Financial Instruments - Assets
Financial Instruments - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Liabilities: | ||
Contingent consideration - other accrued liabilities and other long-term liabilities | $ 59.3 | $ 60.5 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Derivative and hedging assets - other assets | 120.8 | 105.8 |
Total assets | 220 | 201 |
Liabilities: | ||
Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities | 111.3 | 102 |
Contingent consideration - other accrued liabilities and other long-term liabilities | 64.1 | 65.1 |
Total liabilities | 175.4 | 167.1 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Derivative and hedging assets - other assets | 0 | 0 |
Total assets | 41.9 | 38.3 |
Liabilities: | ||
Derivative and hedging liabilities - other accrued liabilities and 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 | 120.8 | 105.8 |
Total assets | 178.1 | 162.7 |
Liabilities: | ||
Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities | 111.3 | 102 |
Contingent consideration - other accrued liabilities and other long-term liabilities | 0 | 0 |
Total liabilities | 111.3 | 102 |
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 accrued liabilities and other long-term liabilities | 0 | 0 |
Contingent consideration - other accrued liabilities and other long-term liabilities | 64.1 | 65.1 |
Total liabilities | 64.1 | 65.1 |
Carrying Amount | ||
Assets: | ||
Derivative and hedging assets - other assets | 120.8 | 105.8 |
Total assets | 220 | 201 |
Liabilities: | ||
Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities | 111.3 | 102 |
Contingent consideration - other accrued liabilities and other long-term liabilities | 64.1 | 65.1 |
Total liabilities | 175.4 | 167.1 |
Money market mutual funds | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market mutual funds | 41.9 | 38.3 |
Money market mutual funds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Money market mutual funds | 41.9 | 38.3 |
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 | 41.9 | 38.3 |
Bonds | Fair Value, Measurements, Recurring | ||
Assets: | ||
Bonds - restricted cash and marketable securities and other assets | 57.3 | 56.9 |
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 | 57.3 | 56.9 |
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 | $ 57.3 | $ 56.9 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Long-term debt, carrying value | $ 11,925,100,000 | $ 11,785,500,000 |
Contingent consideration - other accrued liabilities and other long-term liabilities | 59,300,000 | 60,500,000 |
Waste Management Contract, Sonoma County | ||
Derivative [Line Items] | ||
Contingent consideration - other accrued liabilities and other long-term liabilities | 59,300,000 | |
Potential undiscounted future contingent liability payments, minimum | 78,000,000 | |
Potential undiscounted future contingent liability payments, maximum | 113,000,000 | |
Change in contingent consideration, liability | 0 | |
Estimate of Fair Value Measurement | ||
Derivative [Line Items] | ||
Long-term debt | $ 11,000,000,000 | $ 11,100,000,000 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment Reporting - Financial I
Segment Reporting - Financial Information by Regional Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Gross Revenue | $ 4,414.2 | $ 4,153.3 | $ 12,882.7 | $ 11,576.9 | |
Intercompany Revenue | (588.3) | (555.5) | (1,749.8) | (1,595.4) | |
Revenue allocations | 0 | 0 | 0 | 0 | |
Net Revenue | 3,825.9 | 3,597.8 | 11,132.9 | 9,981.5 | |
Adjusted EBITDA | 1,145.7 | 1,051.3 | 3,301.9 | 2,964.3 | |
Capital Expenditures | 369 | 277.5 | 1,083.2 | 924.8 | |
Total assets | 30,042.8 | 28,401 | 30,042.8 | 28,401 | $ 29,052.9 |
Recycling & Solid Waste Subtotal | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 3,927.3 | 3,678 | 11,427.5 | 10,567.4 | |
Intercompany Revenue | (555.8) | (528) | (1,644.6) | (1,528.1) | |
Revenue allocations | 49.6 | 50.6 | 138.6 | 151.5 | |
Net Revenue | 3,421.1 | 3,200.6 | 9,921.5 | 9,190.8 | |
Adjusted EBITDA | 1,054 | 976.7 | 3,034.9 | 2,825.2 | |
Capital Expenditures | 306.1 | 248.6 | 806.8 | 705.7 | |
Total assets | 23,951.3 | 22,535 | 23,951.3 | 22,535 | |
Group 1 | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 2,000.3 | 1,840.6 | 5,774.3 | 5,306.1 | |
Intercompany Revenue | (294.6) | (281.3) | (881.1) | (815.2) | |
Revenue allocations | 25.7 | 25.8 | 71 | 77.4 | |
Net Revenue | 1,731.4 | 1,585.1 | 4,964.2 | 4,568.3 | |
Adjusted EBITDA | 553.8 | 510.6 | 1,570.4 | 1,491.3 | |
Capital Expenditures | 165.4 | 133.5 | 422 | 376.5 | |
Total assets | 13,112.7 | 12,232 | 13,112.7 | 12,232 | |
Group 2 | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 1,927 | 1,837.4 | 5,653.2 | 5,261.3 | |
Intercompany Revenue | (261.2) | (246.7) | (763.5) | (712.9) | |
Revenue allocations | 23.9 | 24.8 | 67.6 | 74.1 | |
Net Revenue | 1,689.7 | 1,615.5 | 4,957.3 | 4,622.5 | |
Adjusted EBITDA | 500.2 | 466.1 | 1,464.5 | 1,333.9 | |
Capital Expenditures | 140.7 | 115.1 | 384.8 | 329.2 | |
Total assets | 10,838.5 | 10,303 | 10,838.5 | 10,303 | |
Group 3 | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 425.2 | 411 | 1,280.4 | 827.8 | |
Intercompany Revenue | (15.3) | (11.3) | (47.3) | (32.8) | |
Revenue allocations | (5.1) | (2.5) | (21.7) | (4.3) | |
Net Revenue | 404.8 | 397.2 | 1,211.4 | 790.7 | |
Adjusted EBITDA | 91.7 | 74.6 | 267 | 139.1 | |
Capital Expenditures | 25.2 | 29.2 | 66.4 | 80.4 | |
Total assets | 4,011 | 3,991.7 | 4,011 | 3,991.7 | |
Corporate entities and other | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 61.7 | 64.3 | 174.8 | 181.7 | |
Intercompany Revenue | (17.2) | (16.2) | (57.9) | (34.5) | |
Revenue allocations | (44.5) | (48.1) | (116.9) | (147.2) | |
Net Revenue | 0 | 0 | 0 | 0 | |
Adjusted EBITDA | 0 | 0 | 0 | 0 | |
Capital Expenditures | 37.7 | (0.3) | 210 | 138.7 | |
Total assets | $ 2,080.6 | $ 1,874.3 | $ 2,080.6 | $ 1,874.3 |
Segment Reporting - Adjusted EB
Segment Reporting - Adjusted EBITDA and Adjusted EBITDA Margin (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 1,145.7 | $ 1,051.3 | $ 3,301.9 | $ 2,964.3 |
Other (income) expense, net | (1.3) | 0.3 | (3.2) | 6.5 |
Interest income | (2) | (0.8) | (5) | (2) |
Interest expense | 127.6 | 105.2 | 378.8 | 282.7 |
Depreciation, amortization and depletion | 382.3 | 353.9 | 1,099.4 | 1,001.8 |
Accretion | 24.6 | 22.8 | 73.2 | 66.9 |
(Income) loss from unconsolidated equity method investment | (2.8) | 51.8 | (0.2) | 69.2 |
Loss on extinguishment of debt and other related costs | 0 | 0 | 0.2 | 0 |
Restructuring charges | 6.3 | 6.8 | 27.3 | 18.8 |
Adjustment to withdrawal liability for a multiemployer pension fund | 0 | 0 | 0 | 2.2 |
Gain on business divestitures and impairments, net | (1.5) | (5.2) | (1.5) | (5.3) |
Income before income taxes | 606.3 | 507.8 | 1,708.6 | 1,458.1 |
Group 1 | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 553.8 | 510.6 | 1,570.4 | 1,491.3 |
Group 2 | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 500.2 | 466.1 | 1,464.5 | 1,333.9 |
Group 3 | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 91.7 | $ 74.6 | $ 267 | $ 139.1 |
Revenue and Credit Losses - Dis
Revenue and Credit Losses - Disaggregation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 3,825.9 | $ 3,597.8 | $ 11,132.9 | $ 9,981.5 |
Revenue as a percentage of total revenue | 100% | 100% | 100% | 100% |
Transfer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 206.2 | $ 189.3 | $ 577.2 | $ 546 |
Revenue as a percentage of total revenue | 5.40% | 5.30% | 5.20% | 5.50% |
Landfill | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 436.3 | $ 412.2 | $ 1,259.8 | $ 1,167.8 |
Revenue as a percentage of total revenue | 11.40% | 11.50% | 11.30% | 11.70% |
Environmental solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 404.8 | $ 397.2 | $ 1,211.5 | $ 790.7 |
Revenue as a percentage of total revenue | 10.60% | 11% | 10.90% | 7.90% |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 162.1 | $ 172.2 | $ 466.5 | $ 542.8 |
Revenue as a percentage of total revenue | 4.20% | 4.80% | 4.10% | 5.40% |
Recycling processing and commodity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 76.3 | $ 86.9 | $ 226.6 | $ 300.4 |
Revenue as a percentage of total revenue | 2% | 2.40% | 2% | 3% |
Other non-core | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 85.8 | $ 85.3 | $ 239.9 | $ 242.4 |
Revenue as a percentage of total revenue | 2.20% | 2.40% | 2.10% | 2.40% |
Operating Segments | Collection | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 2,616.5 | $ 2,426.9 | $ 7,617.9 | $ 6,934.2 |
Revenue as a percentage of total revenue | 68.40% | 67.40% | 68.50% | 69.50% |
Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 718.2 | $ 680.9 | $ 2,103.4 | $ 1,963 |
Revenue as a percentage of total revenue | 18.80% | 18.90% | 18.90% | 19.70% |
Operating Segments | Small-container | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 1,126.3 | $ 1,021.8 | $ 3,270.2 | $ 2,912.9 |
Revenue as a percentage of total revenue | 29.40% | 28.40% | 29.40% | 29.20% |
Operating Segments | Large-container | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 753 | $ 709.6 | $ 2,192.4 | $ 2,018 |
Revenue as a percentage of total revenue | 19.70% | 19.70% | 19.70% | 20.20% |
Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 19 | $ 14.6 | $ 51.9 | $ 40.3 |
Revenue as a percentage of total revenue | 0.50% | 0.40% | 0.50% | 0.40% |
Operating Segments | Transfer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ 444.3 | $ 412.8 | $ 1,280.5 | $ 1,183.5 |
Operating Segments | Landfill | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | 743.2 | 703.6 | 2,172.4 | 2,019.7 |
Operating Segments | Environmental solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | 424 | 411 | 1,274 | 827.8 |
Intersegment Eliminations | Transfer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | (238.1) | (223.5) | (703.3) | (637.5) |
Intersegment Eliminations | Landfill | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | (306.9) | (291.4) | (912.6) | (851.9) |
Intersegment Eliminations | Environmental solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Revenue | $ (19.2) | $ (13.8) | $ (62.5) | $ (37.1) |
Revenue and Credit Losses - Nar
Revenue and Credit Losses - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs and sales commissions | $ 82.2 | $ 82.2 | $ 80.2 | ||
Capitalized sales commissions to selling, general and administrative expenses | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized contract cost, amortization | 3.5 | $ 3.2 | 10.8 | $ 10 | |
Other deferred contract costs as a reduction of revenue | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized contract cost, amortization | $ 1.2 | $ 1.4 | $ 4 | $ 4.4 |
Revenue and Credit Losses - All
Revenue and Credit Losses - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of year | $ 51.9 | $ 38.5 |
Additions charged to expense | 38.6 | 27.8 |
Accounts written-off | (7) | (16.9) |
Balance at end of period | $ 83.5 | $ 49.4 |
Commitments and Contingencies -
Commitments and Contingencies - Legal Proceedings (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Losses accrued related to legal proceedings | $ (16) |
Loss contingency additional potential liability | $ 9 |
Commitments and Contingencies_2
Commitments and Contingencies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Cash and cash equivalents | $ 157.5 | $ 143.4 | $ 81.4 | $ 29 |
Restricted cash and marketable securities | 153.3 | 127.6 | 121.7 | 139 |
Less: restricted marketable securities | (57) | (56.7) | (55.3) | (62.4) |
Cash, cash equivalents, restricted cash and restricted cash equivalents | $ 253.8 | $ 214.3 | $ 147.8 | $ 105.6 |
Commitments and Contingencies_3
Commitments and Contingencies - Restricted Cash and Marketable Securities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Restricted Cash and Marketable Securities [Abstract] | ||||
Capping, closure and post-closure obligations | $ 43 | $ 39.1 | ||
Insurance | 110.3 | 88.5 | ||
Total restricted cash and marketable securities | $ 153.3 | $ 127.6 | $ 121.7 | $ 139 |