Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 29, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ADS Waste Holdings, Inc. | |
Entity Central Index Key | 1,585,790 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 2.9 | $ 1 |
Accounts receivable, net of allowance for doubtful accounts of $4.2 and $5.0, respectively | 178.3 | 188 |
Prepaid expenses and other current assets | 26.3 | 34.2 |
Deferred income taxes | 18.6 | 14.6 |
Total current assets | 226.1 | 237.8 |
Restricted cash | 0 | 0.2 |
Other assets, net | 76.9 | 101.3 |
Property and equipment, net | 1,632.3 | 1,663.9 |
Goodwill | 1,169.2 | 1,166.9 |
Other intangible assets, net | 359.1 | 379.9 |
Total assets | 3,463.6 | 3,550 |
Current liabilities | ||
Accounts payable | 85.4 | 94.7 |
Accrued expenses | 144.7 | 130.7 |
Deferred revenue | 57.9 | 60 |
Current maturities of landfill retirement obligations | 31.9 | 29.2 |
Current maturities of long-term debt | 12.5 | 25.3 |
Total current liabilities | 332.4 | 339.9 |
Other long-term liabilities, less current maturities | 53.9 | 61.2 |
Long-term debt, less current maturities | 2,245.2 | 2,278.2 |
Accrued landfill retirement obligations, less current maturities | 172.2 | 171.9 |
Deferred income taxes | 162.7 | 169.9 |
Total liabilities | $ 2,966.4 | $ 3,021.1 |
Commitments and contingencies | ||
Equity | ||
Common stock: $.01 par value, 1,000 shares authorized, issued and outstanding | $ 0 | $ 0 |
Additional paid-in capital | 1,099.6 | 1,105 |
Accumulated other comprehensive income | 0 | 1.5 |
Accumulated deficit | (602.4) | (577.6) |
Total stockholder's equity | 497.2 | 528.9 |
Total liabilities and stockholder's equity | $ 3,463.6 | $ 3,550 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 4.2 | $ 5 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Service revenues | $ 361.3 | $ 368.1 | $ 1,046.8 | $ 1,049.2 |
Operating costs and expenses | ||||
Operating | 223.5 | 231.7 | 652.4 | 673 |
Selling, general and administrative | 37.3 | 35.6 | 110.4 | 115.6 |
Depreciation and amortization | 67.5 | 73.8 | 194.8 | 206.7 |
Acquisition and development costs | 0.2 | 0 | 1.3 | 0.1 |
Loss on disposal of assets and businesses disposed and asset impairments | 0.3 | 0.3 | 17.8 | 1.1 |
Restructuring charges | 0 | 1.6 | 0 | 3.6 |
Total operating costs and expenses | 328.8 | 343 | 976.7 | 1,000.1 |
Operating income | 32.5 | 25.1 | 70.1 | 49.1 |
Other income (expense) | ||||
Interest expense | (34.2) | (35.4) | (104) | (105.7) |
Other, net | (8.5) | 1.7 | (4.7) | 2.9 |
Total other expense | (42.7) | (33.7) | (108.7) | (102.8) |
Loss from continuing operations before income taxes | (10.2) | (8.6) | (38.6) | (53.7) |
Income tax benefit | (4.7) | (1.3) | (13.8) | (12) |
Loss from continuing operations | (5.5) | (7.3) | (24.8) | (41.7) |
Discontinued operations | ||||
Loss from discontinued operations | 0 | 0 | 0 | (0.7) |
Income tax benefit | 0 | (0.8) | 0 | (1) |
Discontinued operations, net | 0 | 0.8 | 0 | 0.3 |
Net loss | $ (5.5) | $ (6.5) | $ (24.8) | $ (41.4) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (5.5) | $ (6.5) | $ (24.8) | $ (41.4) |
Other comprehensive loss, net of tax | 0 | (2) | (1.5) | (2.7) |
Comprehensive loss | $ (5.5) | $ (8.5) | $ (26.3) | $ (44.1) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholder's Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
Balance, Amount at Dec. 31, 2014 | $ 528.9 | $ 0 | $ 1,105 | $ 1.5 | $ (577.6) |
Balance, Shares at Dec. 31, 2014 | 1,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (24.8) | (24.8) | |||
Unrealized loss resulting from change in fair value of derivative instruments, net of tax | (1.5) | (1.5) | |||
Stock-based compensation expense | 1.6 | 1.6 | |||
Capital contribution | 0.5 | 0.5 | |||
Return of capital to parent company | (7.5) | (7.5) | |||
Balance, Amount at Sep. 30, 2015 | $ 497.2 | $ 0 | $ 1,099.6 | $ 0 | $ (602.4) |
Balance, Shares at Sep. 30, 2015 | 1,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (24.8) | $ (41.4) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 194.8 | 207 |
Change in fair value of derivative instruments | (8.7) | 0 |
Amortization of interest rate cap premium | 1.5 | 1.9 |
Amortization of debt issuance costs and original issue discount | 14.5 | 14 |
Accretion on landfill retirement obligations | 10 | 9.3 |
Accretion on capital leases, long-term debt, loss contracts and other long-term liabilities and amortization of deferred contract costs | 1.9 | 1.7 |
Provision for doubtful accounts | 2.7 | 2.9 |
Loss on disposition of assets | 0.8 | 0.5 |
Impairment of assets | 6.4 | 0 |
Loss (gain) on disposition of businesses | 10.6 | (0.6) |
Gain on redemption of security | (2.5) | 0 |
Stock option vesting | 1.6 | 1.8 |
Deferred tax provision | (15.8) | (14.8) |
Earnings in equity investee | (1.1) | 0.1 |
Changes in operating assets and liabilities, net of businesses acquired | ||
Decrease (increase) in accounts receivable | 6.8 | (4.2) |
Decrease in prepaid expenses and other current assets | 7.6 | 7.4 |
Decrease in other assets | 0.9 | 1.8 |
Decrease in accounts payable | (1.8) | (0.2) |
Increase in accrued expenses and other long-term liabilities | 14.9 | 17.4 |
Decrease in unearned revenue | (2.5) | (3.1) |
Capping, closure and post-closure expenditures | (11.2) | (6.7) |
Net cash provided by operating activities | 206.6 | 194.8 |
Cash flows from investing activities | ||
Purchases of property and equipment and construction and development | (129.7) | (144) |
Proceeds from sale of property and equipment | 1.7 | 1.9 |
Proceeds from maturity of securities | 15 | 0 |
Acquisition of businesses, net of cash acquired | (25) | (8.7) |
Proceeds from sale of businesses | 11.6 | 2.1 |
Net cash used in investing activities | (126.4) | (148.7) |
Cash flows from financing activities | ||
Proceeds from borrowings on long-term debt | 35 | 75 |
Repayment on long-term debt | (103.9) | (100) |
Deferred financing charges | 0 | (1.2) |
Bank overdraft | (1.3) | 0 |
Other financing activities | (1.1) | 0.1 |
Capital contribution from parent | 0.5 | 0.1 |
Return of capital to parent | (7.5) | (1.9) |
Net cash used in financing activities | (78.3) | (27.9) |
Net increase in cash and cash equivalents | 1.9 | 18.2 |
Cash and cash equivalents, beginning of period | 1 | 12 |
Cash and cash equivalents, end of period | $ 2.9 | $ 30.2 |
Business Operations
Business Operations | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Operations | Business Operations ADS Waste Holdings, Inc. (the “Company,” “ADS Waste” or “ADS”) together with its consolidated subsidiaries is a nonhazardous solid waste services company providing collection, transfer, recycling and disposal services to customers in the Southeast, Midwest and Eastern regions of the United States, as well as in the Commonwealth of the Bahamas. The Company is wholly owned by ADS Waste Holdings Corp. (the “Parent”). The Company currently manages and evaluates its principal operations through three reportable operating segments on a regional basis. Those operating segments are the South, East and Midwest regions which provide collection, transfer, disposal and recycling services. Additional information related to segments can be found in Note 8. Seven acquisitions were completed during the nine months ended September 30, 2015 for aggregate prices consisting of cash of $25.0 and notes payable of $3.3 subject to net working capital adjustments, which are expected to be completed within one year. Six acquisitions were completed during the nine months ended September 30, 2014 for a purchase price of $8.7 . The results of operations of each acquisition are included in our condensed consolidated statements of operations subsequent to the closing date of each acquisition. The Company disposed of certain businesses in the South segment for strategic reasons in June 2015 and recorded a loss on disposal of $10.9 for the nine months ended September 30, 2015 . In connection with the sale, the Company impaired certain assets in the amount of $4.3 in the nine months ending September 30, 2015. Further, the Company strategically concluded not to pursue permitting on a landfill site and therefore recorded a non-cash impairment charge of $2.1 primarily for permitting costs in the nine months ended September 30, 2015 . No impairments or loss on disposal of businesses were recorded for the three and nine months ended September 30, 2014 . |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s condensed consolidated financial statements include its wholly-owned subsidiaries, Advanced Disposal Services South, LLC and HW Star Holdings, Corp. and their respective subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements as of September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014 are unaudited. In the opinion of management, these financial statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the balance sheet, results of operations, comprehensive loss, cash flows, and changes in equity for the periods presented. The results for interim periods are not necessarily indicative of results for the entire year. The financial statements presented herein should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . In preparing our financial statements that conform with accounting principles generally accepted in the United States of America, management uses 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 that 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 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; stock compensation; accounting for goodwill and intangible asset impairments; deferred taxes; uncertain tax positions; self-insurance reserves; and our estimates of the fair values of assets acquired and liabilities assumed in any acquisition. Actual results could differ materially from the estimates and assumptions that the Company uses in preparation of its financial statements. In May 2014, the Financial Accounting Standards Board ("FASB") issued authoritative guidance regarding revenue recognition from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact of the amended guidance on its consolidated financial position, results of operations and related disclosure. In April 2015, the FASB issued guidance which requires debt issuance costs (other than those paid to a lender) to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The standard does not affect the recognition and measurement of debt issuance costs. Therefore, the amortization of such costs should continue to be calculated using the interest method and be reported as interest expense. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The balance sheet presentation of the Company's debt issuance costs and related debt liabilities will be affected beginning January 1, 2016. The Company is in the process of evaluating the impact on the balance sheet presentation. |
Landfill Liabilities
Landfill Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Landfill Liabilities | Landfill Liabilities Liabilities for final closure and post-closure costs for the year ended December 31, 2014 and for the nine months ended September 30, 2015 are shown in the table below: Balance at December 31, 2013 $ 184.3 Increase in retirement obligation 11.5 Accretion of closure and post-closure costs 13.5 Change in estimate 5.6 Costs incurred (13.8 ) Balance at December 31, 2014 201.1 Increase in retirement obligation 7.9 Accretion of closure and post-closure costs 10.0 Costs incurred (11.2 ) Divestiture of businesses (3.7 ) Balance at September 30, 2015 204.1 Less: Current portion (31.9 ) $ 172.2 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the major components of debt at each balance sheet date and provides the maturities and interest rate ranges of each major category of debt: September 30, December 31, Revolving line of credit with lenders ("Revolver"), interest at applicable rate plus margin, as defined due quarterly; balance due at maturity in October 2017 $ — $ — Note payable; discounted at 7.3%, annual payments varied; balance due 2029 3.9 3.8 Note payable; discounted at 8.5%, annual payments of $0.2; balance due February 2018; collateralized by real property — 0.6 Term loans ("Term Loan B"); quarterly payments of $4.5 commencing March 31, 2013 through June 30, 2019 with final payment due October 9, 2019; interest at LIBOR floor of 0.75% plus an applicable margin of 300 basis points at September 30, 2015 and December 31, 2014 1,685.5 1,749.0 Senior notes payable; interest at 8.25% payable in arrears semi-annually commencing April 1, 2013; maturing on October 1, 2020 550.0 550.0 Capital lease obligations, maturing through 2024 26.5 23.3 Other debt 13.1 0.5 2,279.0 2,327.2 Less: Original issue discount (21.3 ) (23.7 ) Less: Current portion (12.5 ) (25.3 ) $ 2,245.2 $ 2,278.2 All borrowings under the Term Loan B and the Revolver are guaranteed by each of the Company's current and future U.S. subsidiaries (which also guarantee the 8.25% senior notes), subject to certain agreed-upon exemptions. The Company has one non-guarantor foreign subsidiary that is minor, as its revenues, income from continuing operations before taxes, assets and cash flow from operations is less than 3% of the Company's consolidated amounts. All guarantors are jointly and severally and fully and unconditionally liable. The Parent has no independent assets or operations and each subsidiary guarantor is 100% owned by the Company. There are no significant restrictions on the Company or any guarantor to obtain funds from its subsidiaries by dividend or loan. Revolver and Letter of Credit Facilities As of September 30, 2015 , the Company had an aggregate committed capacity of $300.0 , of which $100.0 was available for letters of credit under its credit facilities. The Company’s Revolver is its primary source of letter of credit capacity and expires in October 2017. As of September 30, 2015 and December 31, 2014, the Company had an aggregate of approximately $58.5 and $58.1 of letters of credit outstanding under its credit facilities. No other amounts were outstanding as of September 30, 2015 or December 31, 2014. Debt Borrowings and Repayments The Company repaid $35.0 under its Revolver, $63.5 on its Term Loan B and $5.4 on various other obligations in cash during the nine months ended September 30, 2015 . The Company had $35.0 of borrowings on the Revolver during the nine months ended September 30, 2015 and issued notes payable and capital leases of $15.0 in connection with the purchase of land, an acquisition of a business and capital procurement. In February 2014, the Company refinanced its Term Loan B in an amount equal to the outstanding principal at December 31, 2013 bearing interest at a LIBOR floor of 0.75% plus 300 basis points or the base rate as defined plus 200 basis points. No gain or loss was recorded upon the modification and total costs deferred and amortized over the remaining term of the loan in connection with the transaction were approximately $1.2 for nine months ended September 30, 2014. The covenants remained unchanged from the previous debt and the Company was in compliance with the covenants. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The following table summarizes the fair values of derivative instruments recorded in the Company’s condensed consolidated balance sheets: Derivatives Designated as Hedging Instruments Balance Sheet Location September 30, 2015 December 31, Interest rate caps Other assets $ 0.2 $ 2.7 Derivatives Not Designated as Hedging Instruments Fuel commodity derivatives Other current liabilities 15.7 20.6 Fuel commodity derivatives Other long term liabilities 2.9 6.7 Total derivatives $ 18.4 $ 24.6 We have not offset fair value of assets and liabilities recognized for our derivative instruments. Interest Rate Cap In December 2012, the Company entered into four interest rate cap agreements to hedge the risk of a rise in interest rates and associated cash flows on its variable rate debt. The Company recorded a premium of $5.0 in other assets in the condensed consolidated balance sheets and amortizes the premium to interest expense based upon decreases in time value of the caps. Amortization expense was approximately $0.4 and $0.3 for the three months ending September 30, 2015 and 2014 , respectively and for the nine months ended September 30, 2015 and 2014 was $ 1.5 and $ 1.9 , respectively. The notional amounts of the contracts aggregated were approximately $797.1 as of September 30, 2015 and expire in tranches through 2016 . Commodity Futures Contracts The Company utilizes fuel derivative instruments (commodity futures contracts) as economic hedges of the risk that fuel prices will fluctuate. The Company has used financial derivative instruments for both short-term and long-term time frames and utilizes fixed price swap price agreements to manage the identified risk. We do not enter into derivative financial instruments for trading or speculative purposes. Changes in the fair value and settlements of the fuel derivative instruments are recorded in other income (expense), net in the condensed consolidated statements of operations and amounted to losses of $9.3 and $0 for the three months ended September 30, 2015 and 2014, respectively and for the nine months ended September 30, 2015 and 2014 were losses of $ 9.5 and $ 0 , respectively. The market price of diesel fuel is unpredictable and can fluctuate significantly. Significant volatility in the price of fuel could adversely affect the business and reduce the Company's operating margins. For fiscal 2015 and 2016, we have fuel derivative contracts to manage our exposure to fluctuations in fuel pricing and as of September 30, 2015 we have 5.9 gallons and 13.4 gallons, respectively under fixed price contracts with strike prices ranging from $2.20 to $2.84 per gallon. If the mean price of the high and the low exceeds the contract price per gallon, we receive the difference between the average price and the contract price (multiplied by the notional gallons) from the counterparty. If the mean average price is less than the contract price per gallon, we pay the difference to the counterparty. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax benefit rate for continuing operations for the three months ended September 30, 2015 and 2014 was 46.1% and 15.1% , respectively. We evaluate our effective income tax rate at each interim period and adjust it accordingly as facts and circumstances warrant. The difference between income taxes computed at the federal statutory rate of 35% and reported income taxes from continuing operations for the three months ended September 30, 2015 was primarily due to a higher book loss than previously reported, as well as mix of income in the states in which the Company operates. The difference between income taxes computed at the federal statutory rate of 34% and reported income taxes from continuing operations for the three months ended September 30, 2014 was primarily due to recording additional valuation allowances against certain deferred tax assets. The Company’s effective income tax benefit rate for continuing operations for the nine months ended September 30, 2015 and 2014 was 35.8% and 22.3% , respectively. The difference between income taxes computed at the federal statutory rate of 35% and reported income taxes from continuing operations for the nine months ended September 30, 2015 was primarily due to recording additional valuation allowance against certain deferred tax assets, as well as mix of income in the states in which the Company operates. The difference between income taxes computed at the federal statutory rate of 34% and reported income taxes from continuing operations for the nine months ended September 30, 2014 was primarily due to a permanent difference from an employee stock option plan and the effect of recording additional valuation allowance against certain deferred tax assets. As of September 30, 2015 , we have $8.3 of liabilities associated with unrecognized tax benefits and related interest. These liabilities are primarily included as a component of long-term “Other liabilities” in our condensed consolidated balance sheet because the Company generally does not anticipate that settlement of the liabilities will require payment of cash within the next 12 months. We are not able to reasonably estimate when we would make any cash payments required to settle these liabilities, but we do not believe that the ultimate settlement of our obligations will materially affect our liquidity. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Financial Instruments —The Company has obtained letters of credit, performance bonds and insurance policies for the performance of landfill final capping, closure and post-closure requirements, environmental remediation, and other obligations. Letters of credit are supported by the Company’s Revolver. Management does not expect that any claims against or draws on these instruments would have a material adverse effect on the Company’s consolidated financial statements. The Company has not experienced any unmanageable difficulty in obtaining the required financial assurance instruments for its current operations. In an ongoing effort to mitigate risks of future cost increases and reductions in available capacity, the Company continues to evaluate various options to access cost-effective sources of financial assurance. Insurance —The Company carries insurance coverage for protection of its assets and operations from certain risks including automobile liability, general liability, real and personal property, workers' compensation, directors' and officers' liability, pollution legal liability and other coverages the Company believes are customary to the industry. The Company's exposure to loss for insurance claims is generally limited to the per incident deductible, or self-insured retention, under the related insurance policy. Its exposure, however, could increase if its insurers are unable to meet their commitments on a timely basis. The Company has retained a significant portion of the risks related to its automobile, general liability, workers' compensation and health claims programs. For its self-insured retentions, the exposure for unpaid claims and associated expenses, including incurred but not reported losses, is based on an actuarial valuation and internal estimates. The accruals for these liabilities could be revised if future occurrences or loss development significantly differ from the Company's assumptions used. The Company does not expect the impact of any known casualty, property, environmental or other contingency to have a material impact on its financial condition, results of operations or cash flows. Litigation and Other Matters —In February 2009, the Company and certain of its subsidiaries were named as defendants in a purported class action suit in the Circuit Court of Macon County, Alabama. Similar class action complaints were brought against the Company and certain of its subsidiaries in 2011 in Duval County, Florida and in 2013 in Quitman County, Georgia and Barbour County, Alabama, and in 2014 in Chester County, Pennsylvania. The Georgia complaint was dismissed in March 2014. The plaintiffs in those cases primarily allege that the defendants charged improper fees (fuel, administrative and environmental fees) that were in breach of the plaintiffs' service agreements with the Company and seek damages in an unspecified amount. The Company believes that it has meritorious defenses against these purported class actions, which it will vigorously pursue. Given the inherent uncertainties of litigation, including the early stage of these cases, the unknown size of any potential class, and legal and factual issues in dispute, the outcome of these cases cannot be predicted and a range of loss, if any, cannot currently be estimated. In November 2014, the Attorney General of the State of Vermont filed a complaint against the Company relating to the Moretown, Vermont landfill regarding alleged odor and other environmental-related noncompliances with environmental laws and regulations and environmental permits. In the complaint, the Attorney General requested that the State of Vermont Superior Court find the Company liable for the alleged noncompliances, issue related civil penalties, and order the Company to reimburse the State of Vermont for enforcement costs. While the complaint does not specify a monetary penalty, prior correspondence from the Attorney General of the State of Vermont indicates that it may seek a penalty of $450,000 relating to the alleged noncompliances. The Company is subject to various other proceedings, lawsuits, disputes and claims and regulatory investigations arising in the ordinary course of its business. Many of these actions raise complex factual and legal issues and are subject to uncertainties. Actions filed against the Company include commercial, customer, and employment-related claims. The plaintiffs in some actions seek unspecified damages or injunctive relief, or both. These actions are in various procedural stages, and some are covered in part by insurance. Although we cannot predict the ultimate outcome and the range of loss cannot be currently estimated, we do not believe that the eventual outcome of any such action could have a material adverse effect on the Company's business, financial condition, results of operations, or cash flows. Multiemployer Defined Benefit Pension Plans —Approximately 13.2% of the Company’s workforce is covered by collective bargaining agreements with various union locals across our operating regions. As a result of some of these agreements, certain of the Company’s subsidiaries are participating employers in a number of trustee-managed multiemployer, defined benefit pension plans for the affected employees. In connection with its ongoing renegotiation of various collective bargaining agreements, the Company may discuss and negotiate for the complete or partial withdrawal from one or more of these pension plans. A complete or partial withdrawal from a multiemployer pension plan may also occur if employees covered by a collective bargaining agreement vote to decertify a union from continuing to represent them. The Company is not aware of any such actions in connection with continuing operations. As a result of certain discontinued operations, the Company is potentially exposed to certain withdrawal liabilities. The Company does not believe that any future withdrawals, individually or in the aggregate, from the multiemployer plans to which we contribute could have a material adverse effect on our business, financial condition or liquidity. However, such withdrawals could have a material adverse effect on our results of operations for a particular reporting period, depending on the number of employees withdrawn in any future period and the financial condition of the multiemployer plan(s) at the time of such withdrawal(s). Tax Matters — The Company has open tax years dating back to 1998 in certain jurisdictions. Prior to the acquisition, MW Star Holdings, Corp. ("Veolia ES Solid Waste division") was part of a consolidated group and is still subject to IRS and state examinations dating back to 2004. Pursuant to the terms of the acquisition of Veolia ES Solid Waste, Inc., the Company is entitled to certain indemnifications for Veolia ES Solid Waste Division's pre-acquisition tax liabilities. The Company maintains a liability for uncertain tax positions, the balance of which management believes is adequate. Results of audit assessments by taxing authorities are not currently expected to have a material adverse impact on the Company's results of operations or cash flows. |
Segment and Related Information
Segment and Related Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment and Related Information | Segment and Related Information The Company currently manages and evaluates its operations primarily through its South, East and Midwest regional segments. These three groups are presented below as the Company’s reportable segments. The Company’s three geographic operating segments provide collection, transfer, disposal and recycling services. The Company serves residential, commercial and industrial, and municipal customers throughout its operating regions. Summarized financial information concerning its reportable segments for the three and nine months ended September 30, 2015 and 2014 are shown in the table below: Service Operating Depreciation Three Months Ended September 30, 2015 South $ 122.5 $ 21.4 $ 18.1 East 95.4 7.9 20.0 Midwest 143.4 17.5 27.3 Corporate — (14.3 ) 2.1 $ 361.3 $ 32.5 $ 67.5 Three Months Ended September 30, 2014 South $ 125.9 $ 18.8 $ 18.5 East 97.2 4.3 24.0 Midwest 145.0 16.7 28.9 Corporate — (14.7 ) 2.4 $ 368.1 $ 25.1 $ 73.8 Nine Months Ended September 30, 2015 South $ 368.6 $ 49.8 $ 54.6 East 272.8 16.4 56.7 Midwest 405.4 45.5 77.3 Corporate — (41.6 ) 6.2 $ 1,046.8 $ 70.1 $ 194.8 Nine Months Ended September 30, 2014 South $ 372.0 $ 54.3 $ 55.7 East 268.4 4.8 63.0 Midwest 408.8 38.5 81.7 Corporate — (48.5 ) 6.3 $ 1,049.2 $ 49.1 $ 206.7 Fluctuations in the Company's operating results may be caused by many factors, including period-to-period changes in the relative contribution of revenue by each line of business and operating segment and by general economic conditions. In addition, its revenues and income from operations typically reflect seasonal patterns. We expect our operating results to vary seasonally, with revenues typically lowest in the first quarter, higher in the second and third quarters and lower in the fourth quarter than in the second and third quarters. This seasonality reflects the lower volume of solid waste generated during the late fall, winter and early spring because of decreased construction and demolition activities during winter months in the United States. In addition, some of our operating costs may be higher in the winter months. Adverse winter weather conditions slow waste collection activities, resulting in higher labor and operational costs. Greater precipitation in the winter increases the weight of collected municipal solid waste, resulting in higher disposal costs, which are calculated on a per ton basis. Additionally, certain destructive weather conditions that tend to occur during the second half of the year, such as hurricanes that most often impact the South region, can increase the Company’s revenues in the areas affected. While weather-related and other “one-time” occurrences can boost revenues through additional work, as a result of significant start-up costs and other factors, such revenue sometimes generates earnings at comparatively lower margins. Certain weather conditions, including severe winter storms, may result in the temporary suspension of the Company’s operations, which can significantly affect the operating results of the affected regions. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Accounted for at Fair Value 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 approximate fair value because of their short-term nature. The Company’s assets and liabilities that are measured at fair value on a recurring basis include the following: Fair Value Measurement at September 30, 2015 Total Quoted Prices Significant Significant Total Carrying Recurring fair value measurements Cash and cash equivalents $ 2.9 $ 2.9 $ — $ — $ — $ 2.9 Derivative instruments - Asset position 0.2 — 0.2 — — 0.2 Derivative instruments - Liability position (18.6 ) $ — (18.6 ) $ — $ — $ (18.6 ) Total recurring fair value measurements $ (15.5 ) $ 2.9 $ (18.4 ) $ — $ — $ (15.5 ) Fair Value Measurement at December 31, 2014 Total Quoted Prices Significant Significant Total Carrying Recurring fair value measurements Cash and cash equivalents $ 1.0 $ 1.0 $ — $ — $ — $ 1.0 Restricted cash 0.2 0.2 — — — 0.2 Derivative instruments - Asset position 2.7 — 2.7 — — 2.7 Derivative instruments - Liability position (27.3 ) $ — (27.3 ) $ — $ — $ (27.3 ) Total recurring fair value measurements $ (23.4 ) $ 1.2 $ (24.6 ) $ — $ — $ (23.4 ) The fair values of our fuel hedges and interest rate caps are determined using standard option valuation models with assumptions about commodity prices based on those observed in underlying markets (Level 2 in fair value hierarchy). Fair Value of Debt The fair value of the Company’s debt (Level 2) is estimated using indirectly observable market inputs, except for variable rate debt for which cost approximates fair value due to the short-term nature of the interest rate. Although the Company has determined the estimated fair value amounts using available market information and commonly accepted valuation methodologies, considerable judgment is required in interpreting the information and in developing the estimated fair values. Therefore, these estimates are not necessarily indicative of the amounts that the Company, or holders of the instruments, could realize in a current market exchange. The fair value estimates are based on information available as of September 30, 2015 and December 31, 2014 , respectively. The estimated fair value of the Company’s debt is as follows: September 30, December 31, Senior notes $ 550.0 $ 550.0 Term loan B 1,660.2 1,692.2 $ 2,210.2 $ 2,242.2 The carrying value of the Company’s debt at September 30, 2015 and December 31, 2014 was approximately $2,235.5 and $2,299.0 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation During the nine months ended September 30, 2015 , there were 4,750 annual and senior management and 6,410 strategic grant issuances under the Parent's stock option plan. For the nine months ended September 30, 2015 , 1,812 annual and senior management options were forfeited and 3,722 strategic options were forfeited. Further, 117 annual and senior management options and 715 strategic options were exercised for the nine months ended September 30, 2015. As of September 30, 2015 there were 41,747 options outstanding under the annual and senior management plan and 41,700 outstanding under the strategic plan. The weighted average exercise price of annual and strategic stock options were $686 and $608 , respectively and the weighted average grant date fair value of annual and strategic stock options were $291 and $331 , respectively. The weighted average remaining contractual term for the outstanding annual and senior management stock option plans was 6.3 years. The weighted average remaining contractual terms for the outstanding strategic option plan was 5.1 years . Total unrecognized compensation expense was approximately $3.5 , which will be recognized over the next 2.4 years for annual awards and 3.6 years for strategic grants. For the three months ended September 30, 2015 and 2014, compensation expense was approximately $0.4 and $0.4 , respectively. For the nine months ended September 30, 2015 and 2014, compensation expense was approximately $1.6 and $1.8 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The changes in the balances of each component of accumulated other comprehensive income, net of tax, which is included as a component of stockholder's equity, are as follows: Nine Months Ended Gains and Losses on Derivative Instruments (a) Balance, December 31, 2014 $ 1.5 Other comprehensive loss before reclassifications, net of tax — Amounts reclassified from accumulated other comprehensive income (1.5 ) Net current period other comprehensive loss (1.5 ) Balance, September 30, 2015 $ — (a) Amounts in parentheses represent debits to accumulated other comprehensive income. There were no significant amounts reclassified into accumulated other comprehensive income. There were after tax reclassification adjustments of $0 and $0.1 for the three months ended September 30, 2015 , and 2014, respectively. After tax reclassification adjustments decreased accumulated other comprehensive income by $1.5 and $0.1 primarily related to the interest rate caps for the nine months ended September 30, 2015 and 2014, respectively. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The Company’s condensed consolidated financial statements include its wholly-owned subsidiaries, Advanced Disposal Services South, LLC and HW Star Holdings, Corp. and their respective subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of estimates and assumptions | In preparing our financial statements that conform with accounting principles generally accepted in the United States of America, management uses 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 that 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 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; stock compensation; accounting for goodwill and intangible asset impairments; deferred taxes; uncertain tax positions; self-insurance reserves; and our estimates of the fair values of assets acquired and liabilities assumed in any acquisition. Actual results could differ materially from the estimates and assumptions that the Company uses in preparation of its financial statements. |
New accounting pronouncements | In May 2014, the Financial Accounting Standards Board ("FASB") issued authoritative guidance regarding revenue recognition from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact of the amended guidance on its consolidated financial position, results of operations and related disclosure. In April 2015, the FASB issued guidance which requires debt issuance costs (other than those paid to a lender) to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The standard does not affect the recognition and measurement of debt issuance costs. Therefore, the amortization of such costs should continue to be calculated using the interest method and be reported as interest expense. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The balance sheet presentation of the Company's debt issuance costs and related debt liabilities will be affected beginning January 1, 2016. The Company is in the process of evaluating the impact on the balance sheet presentation. |
Landfill Liabilities (Tables)
Landfill Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Summary of Liabilities for Final Closure and Post-Closure Costs | Liabilities for final closure and post-closure costs for the year ended December 31, 2014 and for the nine months ended September 30, 2015 are shown in the table below: Balance at December 31, 2013 $ 184.3 Increase in retirement obligation 11.5 Accretion of closure and post-closure costs 13.5 Change in estimate 5.6 Costs incurred (13.8 ) Balance at December 31, 2014 201.1 Increase in retirement obligation 7.9 Accretion of closure and post-closure costs 10.0 Costs incurred (11.2 ) Divestiture of businesses (3.7 ) Balance at September 30, 2015 204.1 Less: Current portion (31.9 ) $ 172.2 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Major Components of Debt | The following table summarizes the major components of debt at each balance sheet date and provides the maturities and interest rate ranges of each major category of debt: September 30, December 31, Revolving line of credit with lenders ("Revolver"), interest at applicable rate plus margin, as defined due quarterly; balance due at maturity in October 2017 $ — $ — Note payable; discounted at 7.3%, annual payments varied; balance due 2029 3.9 3.8 Note payable; discounted at 8.5%, annual payments of $0.2; balance due February 2018; collateralized by real property — 0.6 Term loans ("Term Loan B"); quarterly payments of $4.5 commencing March 31, 2013 through June 30, 2019 with final payment due October 9, 2019; interest at LIBOR floor of 0.75% plus an applicable margin of 300 basis points at September 30, 2015 and December 31, 2014 1,685.5 1,749.0 Senior notes payable; interest at 8.25% payable in arrears semi-annually commencing April 1, 2013; maturing on October 1, 2020 550.0 550.0 Capital lease obligations, maturing through 2024 26.5 23.3 Other debt 13.1 0.5 2,279.0 2,327.2 Less: Original issue discount (21.3 ) (23.7 ) Less: Current portion (12.5 ) (25.3 ) $ 2,245.2 $ 2,278.2 |
Derivative Instruments and He22
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Values of Derivative Instruments Recorded in Condensed Consolidated Balance Sheets | The following table summarizes the fair values of derivative instruments recorded in the Company’s condensed consolidated balance sheets: Derivatives Designated as Hedging Instruments Balance Sheet Location September 30, 2015 December 31, Interest rate caps Other assets $ 0.2 $ 2.7 Derivatives Not Designated as Hedging Instruments Fuel commodity derivatives Other current liabilities 15.7 20.6 Fuel commodity derivatives Other long term liabilities 2.9 6.7 Total derivatives $ 18.4 $ 24.6 |
Segment and Related Informati23
Segment and Related Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Summary of Financial Information Concerning Reportable Segments | Summarized financial information concerning its reportable segments for the three and nine months ended September 30, 2015 and 2014 are shown in the table below: Service Operating Depreciation Three Months Ended September 30, 2015 South $ 122.5 $ 21.4 $ 18.1 East 95.4 7.9 20.0 Midwest 143.4 17.5 27.3 Corporate — (14.3 ) 2.1 $ 361.3 $ 32.5 $ 67.5 Three Months Ended September 30, 2014 South $ 125.9 $ 18.8 $ 18.5 East 97.2 4.3 24.0 Midwest 145.0 16.7 28.9 Corporate — (14.7 ) 2.4 $ 368.1 $ 25.1 $ 73.8 Nine Months Ended September 30, 2015 South $ 368.6 $ 49.8 $ 54.6 East 272.8 16.4 56.7 Midwest 405.4 45.5 77.3 Corporate — (41.6 ) 6.2 $ 1,046.8 $ 70.1 $ 194.8 Nine Months Ended September 30, 2014 South $ 372.0 $ 54.3 $ 55.7 East 268.4 4.8 63.0 Midwest 408.8 38.5 81.7 Corporate — (48.5 ) 6.3 $ 1,049.2 $ 49.1 $ 206.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s assets and liabilities that are measured at fair value on a recurring basis include the following: Fair Value Measurement at September 30, 2015 Total Quoted Prices Significant Significant Total Carrying Recurring fair value measurements Cash and cash equivalents $ 2.9 $ 2.9 $ — $ — $ — $ 2.9 Derivative instruments - Asset position 0.2 — 0.2 — — 0.2 Derivative instruments - Liability position (18.6 ) $ — (18.6 ) $ — $ — $ (18.6 ) Total recurring fair value measurements $ (15.5 ) $ 2.9 $ (18.4 ) $ — $ — $ (15.5 ) Fair Value Measurement at December 31, 2014 Total Quoted Prices Significant Significant Total Carrying Recurring fair value measurements Cash and cash equivalents $ 1.0 $ 1.0 $ — $ — $ — $ 1.0 Restricted cash 0.2 0.2 — — — 0.2 Derivative instruments - Asset position 2.7 — 2.7 — — 2.7 Derivative instruments - Liability position (27.3 ) $ — (27.3 ) $ — $ — $ (27.3 ) Total recurring fair value measurements $ (23.4 ) $ 1.2 $ (24.6 ) $ — $ — $ (23.4 ) |
Estimated Fair Value of Company's Debt | The estimated fair value of the Company’s debt is as follows: September 30, December 31, Senior notes $ 550.0 $ 550.0 Term loan B 1,660.2 1,692.2 $ 2,210.2 $ 2,242.2 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Summary of Changes in Balances of Each Component of Accumulated Other Comprehensive Income, Net of Tax | The changes in the balances of each component of accumulated other comprehensive income, net of tax, which is included as a component of stockholder's equity, are as follows: Nine Months Ended Gains and Losses on Derivative Instruments (a) Balance, December 31, 2014 $ 1.5 Other comprehensive loss before reclassifications, net of tax — Amounts reclassified from accumulated other comprehensive income (1.5 ) Net current period other comprehensive loss (1.5 ) Balance, September 30, 2015 $ — (a) Amounts in parentheses represent debits to accumulated other comprehensive income. |
Business Operations - Additiona
Business Operations - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Segmentacquisition | Sep. 30, 2014USD ($)acquisition | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of reportable operating segments | Segment | 3 | ||
Number of acquisitions completed | acquisition | 7 | 6 | |
Consideration transferred, cash | $ 25,000,000 | ||
Consideration transferred, notes payable | 3,300,000 | ||
Consideration transferred | $ 8,700,000 | ||
Loss on disposition of business | $ 0 | 10,900,000 | 0 |
Disposal group, impairment of assets | 0 | 4,300,000 | 0 |
Disposal group, non-cash impairment in connection with the permit lapse | $ 0 | $ 2,100,000 | $ 0 |
Landfill Liabilities - Summary
Landfill Liabilities - Summary of Liabilities for Final Closure and Post-Closure Costs (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | $ 201.1 | $ 184.3 | $ 184.3 |
Increase in retirement obligation | 7.9 | 11.5 | |
Accretion of closure and post-closure costs | 10 | $ 9.3 | 13.5 |
Change in estimate | 5.6 | ||
Costs incurred | (11.2) | (13.8) | |
Divestiture of businesses | (3.7) | ||
Ending balance | 204.1 | $ 201.1 | |
Less: Current portion | (31.9) | ||
Noncurrent portion | $ 172.2 |
Debt - Summary of Major Compone
Debt - Summary of Major Components of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Capital lease obligations, maturing through 2024 | $ 26.5 | $ 23.3 |
Other debt | 13.1 | 0.5 |
Long-term debt, gross | 2,279 | 2,327.2 |
Less: Original issue discount | (21.3) | (23.7) |
Less: Current portion | (12.5) | (25.3) |
Long-term debt, less original issue discount and current maturities | 2,245.2 | 2,278.2 |
Revolving line of credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0 |
Note payable; discounted at 7.3% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 3.9 | 3.8 |
Note payable; discounted at 8.5% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0.6 |
Term loans [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,685.5 | 1,749 |
Senior notes payable; interest at 8.25% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 550 | $ 550 |
Debt - Summary of Major Compo29
Debt - Summary of Major Components of Debt (Details 2) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Note payable; discounted at 7.3% [Member] | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 7.30% | 7.30% |
Note payable; discounted at 8.5% [Member] | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 8.50% | 8.50% |
Annual payment | $ 0.2 | $ 0.2 |
Term loans [Member] | ||
Debt Instrument [Line Items] | ||
Quarterly payment | $ 4.5 | $ 4.5 |
Senior notes payable; interest at 8.25% [Member] | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 8.25% | 8.25% |
LIBOR [Member] | Term loans [Member] | ||
Debt Instrument [Line Items] | ||
Reference rate | 0.75% | 0.75% |
Basis spread on variable rate | 3.00% | 3.00% |
Debt - Additional Information (
Debt - Additional Information (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Feb. 28, 2014USD ($) | Sep. 30, 2015USD ($)Subsidiary | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | ||||
Number of non-guarantor foreign subsidiary | Subsidiary | 1 | |||
Percentage of income and cash flows from operating activities, less than 3% | 3.00% | |||
Percentage of parent company in subsidiary guarantor | 100.00% | |||
Letters of credit outstanding | $ 58,500,000 | $ 58,100,000 | ||
Repayment of term loan | 63,500,000 | |||
Repayment of other obligations | 5,400,000 | |||
Borrowings in cash | 35,000,000 | $ 75,000,000 | ||
Notes issued | 15,000,000 | |||
Debt issuance cost | $ 1,200,000 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit maximum borrowing capacity | 300,000,000 | |||
Repayments under credit facilities | 35,000,000 | |||
Letters of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit maximum borrowing capacity | $ 100,000,000 | |||
Term loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Gain (loss) on debt modification | $ 0 | |||
LIBOR [Member] | Term loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Reference rate | 0.75% | 0.75% | ||
Basis spread on variable rate | 3.00% | 3.00% | ||
Base Rate [Member] | Term loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% |
Derivative Instruments and He31
Derivative Instruments and Hedging Activities - Summary of Fair Values of Derivative Instruments Recorded in Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivatives | $ 18.4 | $ 24.6 |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Caps [Member] | Other Assets [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | 0.2 | 2.7 |
Not Designated as Hedging Instrument [Member] | Fuel Commodity Derivatives [Member] | Other Current Liabilities [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative liabilities | 15.7 | 20.6 |
Not Designated as Hedging Instrument [Member] | Fuel Commodity Derivatives [Member] | Other Long Term Liabilities [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative liabilities | $ 2.9 | $ 6.7 |
Derivative Instruments and He32
Derivative Instruments and Hedging Activities - Additional Information (Details) gal in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)$ / galgal | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)$ / galgal | Sep. 30, 2014USD ($) | Dec. 31, 2012USD ($)Agreement | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amortization of option interest rate cap premium | $ 1.5 | $ 1.9 | |||
Interest Rate Caps [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of interest rate cap agreements | Agreement | 4 | ||||
Amortization of option interest rate cap premium | $ 0.4 | $ 0.3 | 1.5 | 1.9 | |
Notional amounts of the contracts | 797.1 | 797.1 | |||
Interest Rate Caps [Member] | Other Assets [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Premium included in other assets from condensed consolidated balance sheet | $ 5 | ||||
Fuel Commodity Derivatives [Member] | Other Income (Expense), Net [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Changes in the fair value and settlements of fuel derivative instruments | $ 9.3 | $ 0 | $ 9.5 | $ 0 | |
Fuel Commodity Derivatives [Member] | Minimum [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Hedged strike prices (in dollars per share) | $ / gal | 2.2 | 2.2 | |||
Fuel Commodity Derivatives [Member] | Maximum [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Hedged strike prices (in dollars per share) | $ / gal | 2.84 | 2.84 | |||
Fuel Commodity Derivatives, Fiscal 2015 [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Commodity volume hedged | gal | 5.9 | 5.9 | |||
Fuel Commodity Derivatives, Fiscal 2016 [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Commodity volume hedged | gal | 13.4 | 13.4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate continuing operations | 46.10% | 15.10% | 35.80% | 22.30% |
Federal statutory tax rate | 35.00% | 34.00% | 35.00% | 34.00% |
Unrecognized tax benefits and related interest | $ 8.3 | $ 8.3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Site Contingency [Line Items] | |
Percentage of workforce covered under collective bargaining | 13.20% |
Environmental-related Noncompliances and Odor [Member] | Moretown, Vermont Landfill [Member] | |
Site Contingency [Line Items] | |
Penalty the Attorney General of the State of Vermont may seek | $ 450 |
Segment and Related Informati35
Segment and Related Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable geographic segments | 3 |
Segment and Related Informati36
Segment and Related Information - Summary of Financial Information Concerning Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Service Revenue | $ 361.3 | $ 368.1 | $ 1,046.8 | $ 1,049.2 |
Operating Income (Loss) | 32.5 | 25.1 | 70.1 | 49.1 |
Depreciation and Amortization | 67.5 | 73.8 | 194.8 | 206.7 |
Operating Segments [Member] | South [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Service Revenue | 122.5 | 125.9 | 368.6 | 372 |
Operating Income (Loss) | 21.4 | 18.8 | 49.8 | 54.3 |
Depreciation and Amortization | 18.1 | 18.5 | 54.6 | 55.7 |
Operating Segments [Member] | East [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Service Revenue | 95.4 | 97.2 | 272.8 | 268.4 |
Operating Income (Loss) | 7.9 | 4.3 | 16.4 | 4.8 |
Depreciation and Amortization | 20 | 24 | 56.7 | 63 |
Operating Segments [Member] | Midwest [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Service Revenue | 143.4 | 145 | 405.4 | 408.8 |
Operating Income (Loss) | 17.5 | 16.7 | 45.5 | 38.5 |
Depreciation and Amortization | 27.3 | 28.9 | 77.3 | 81.7 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Service Revenue | 0 | 0 | 0 | 0 |
Operating Income (Loss) | (14.3) | (14.7) | (41.6) | (48.5) |
Depreciation and Amortization | $ 2.1 | $ 2.4 | $ 6.2 | $ 6.3 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Total Fair Value [Member] | ||
Recurring fair value measurements | ||
Cash and cash equivalents | $ 2.9 | $ 1 |
Restricted cash | 0.2 | |
Derivative instruments - Asset position | 0.2 | 2.7 |
Derivative instruments - Liability position | (18.6) | (27.3) |
Total recurring fair value measurements | (15.5) | (23.4) |
Total Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Recurring fair value measurements | ||
Cash and cash equivalents | 2.9 | 1 |
Restricted cash | 0.2 | |
Derivative instruments - Asset position | 0 | 0 |
Derivative instruments - Liability position | 0 | 0 |
Total recurring fair value measurements | 2.9 | 1.2 |
Total Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Recurring fair value measurements | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | |
Derivative instruments - Asset position | 0.2 | 2.7 |
Derivative instruments - Liability position | (18.6) | (27.3) |
Total recurring fair value measurements | (18.4) | (24.6) |
Total Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Recurring fair value measurements | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | |
Derivative instruments - Asset position | 0 | 0 |
Derivative instruments - Liability position | 0 | 0 |
Total recurring fair value measurements | 0 | 0 |
Total Gains (Losses) [Member] | ||
Recurring fair value measurements | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | |
Derivative instruments - Asset position | 0 | 0 |
Derivative instruments - Liability position | 0 | 0 |
Total recurring fair value measurements | 0 | 0 |
Carrying Value [Member] | ||
Recurring fair value measurements | ||
Cash and cash equivalents | 2.9 | 1 |
Restricted cash | 0.2 | |
Derivative instruments - Asset position | 0.2 | 2.7 |
Derivative instruments - Liability position | (18.6) | (27.3) |
Total recurring fair value measurements | $ (15.5) | $ (23.4) |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value of Company's Debt (Details) - Level 2 [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Estimated fair value debt | $ 2,210.2 | $ 2,242.2 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Estimated fair value debt | 550 | 550 |
Term B Loan [Member] | ||
Debt Instrument [Line Items] | ||
Estimated fair value debt | $ 1,660.2 | $ 1,692.2 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Debt instruments carrying value | $ 2,235.5 | $ 2,299 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense related to grants, total | $ 3.5 | $ 3.5 | ||
Compensation expense | $ 0.4 | $ 0.4 | $ 1.6 | $ 1.8 |
Annual Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock options granted | 4,750 | |||
Number of stock options forfeited | 1,812 | |||
Number of options exercised | 117 | |||
Number of options outstanding | 41,747 | 41,747 | ||
Stock options, weighted average exercise price (in dollars per share) | $ 686 | |||
Stock options, weighted average grant date fair value (in dollars per share) | $ 291 | |||
Stock options, weighted average remaining contractual term | 6 years 3 months 18 days | |||
Unrecognized compensation expense, recognition period | 2 years 4 months 18 days | |||
Strategic Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock options granted | 6,410 | |||
Number of stock options forfeited | 3,722 | |||
Number of options exercised | 715 | |||
Number of options outstanding | 41,700 | 41,700 | ||
Stock options, weighted average exercise price (in dollars per share) | $ 608 | |||
Stock options, weighted average grant date fair value (in dollars per share) | $ 331 | |||
Stock options, weighted average remaining contractual term | 5 years 1 month 18 days | |||
Unrecognized compensation expense, recognition period | 3 years 7 months 18 days |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income - Summary of Changes in Balances of Each Component of Accumulated Other Comprehensive Income, Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in the Balances of Each Component of AOCI | ||||
Balance, December 31, 2014 | $ 1.5 | |||
Amounts reclassified from accumulated other comprehensive income | $ 0 | $ (0.1) | (1.5) | $ (0.1) |
Net current period other comprehensive loss | (1.5) | |||
Balance, September 30, 2015 | 0 | 0 | ||
After tax reclassification adjustments | 0 | $ 0.1 | 1.5 | $ 0.1 |
Gains and Losses on Derivative Instruments [Member] | ||||
Changes in the Balances of Each Component of AOCI | ||||
Balance, December 31, 2014 | 1.5 | |||
Other comprehensive loss before reclassifications, net of tax | 0 | |||
Amounts reclassified from accumulated other comprehensive income | (1.5) | |||
Net current period other comprehensive loss | (1.5) | |||
Balance, September 30, 2015 | $ 0 | 0 | ||
After tax reclassification adjustments | $ 1.5 |