Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-06732 | |
Entity Registrant Name | COVANTA HOLDING CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-6021257 | |
Entity Address, Address Line One | 445 South Street | |
Entity Address, City or Town | Morristown, | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07960 | |
City Area Code | 862 | |
Local Phone Number | 345-5000 | |
Title of 12(b) Security | Common Stock, $0.10 par value per share | |
Trading Symbol | CVA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 131,953,608 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0000225648 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING REVENUES: | ||
Total operating revenue | $ 468 | $ 453 |
OPERATING EXPENSES: | ||
Plant operating expense | 361 | 359 |
Other operating expense, net | 12 | 17 |
General and administrative expense | 30 | 30 |
Depreciation and amortization expense | 58 | 55 |
Impairment charges | 19 | 0 |
Total operating expense | 480 | 461 |
Operating loss | (12) | (8) |
Other income (expense): | ||
Interest expense | (34) | (36) |
Net gain on sale of business and investments | 9 | 50 |
Other (expense) income, net | (1) | 1 |
Total other (expense) income | (26) | 15 |
(Loss) income before income tax benefit (expense) and equity in net income from unconsolidated investments | (38) | 7 |
Income tax benefit (expense) | 5 | (2) |
Equity in net income from unconsolidated investments | 1 | 0 |
Net (loss) income | $ (32) | $ 5 |
Weighted Average Common Shares Outstanding: | ||
Basic | 131 | 131 |
Diluted | 131 | 133 |
Earnings Per Share Attributable to Covanta Holding Corporation stockholders': | ||
Basic | $ (0.24) | $ 0.04 |
Diluted | (0.24) | 0.03 |
Cash Dividend Declared Per Share | $ 0.25 | $ 0.25 |
Waste and service revenue | ||
OPERATING REVENUES: | ||
Total operating revenue | $ 346 | $ 327 |
Energy revenue | ||
OPERATING REVENUES: | ||
Total operating revenue | 93 | 94 |
Recycled metals revenue | ||
OPERATING REVENUES: | ||
Total operating revenue | 17 | 21 |
Other operating revenue | ||
OPERATING REVENUES: | ||
Total operating revenue | $ 12 | $ 11 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Comprehensive loss | $ (42) | $ 0 |
Net Income (Loss) Attributable to Parent | (32) | 5 |
Foreign currency translation | (6) | (5) |
Pension and postretirement plan unrecognized benefits, net of tax expense of $0, $0, respectively | 0 | |
Net unrealized loss on derivative instruments, net of tax expense of $0 and $3, respectively | (4) | 0 |
Other comprehensive loss | (10) | (5) |
Comprehensive loss | (42) | 0 |
AOCI Attributable to Parent [Member] | ||
Other comprehensive loss | $ (10) | $ (5) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - Parenthetical - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 0 | $ 0 |
Unrealized gain (loss) on derivative instruments, tax | $ 0 | $ 3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 42 | $ 37 |
Restricted funds held in trust | 14 | 18 |
Receivables (less allowances of $6 and $9, respectively) | 211 | 240 |
Prepaid expenses and other current assets | 116 | 105 |
Total Current Assets | 383 | 400 |
Property, plant and equipment, net | 2,445 | 2,451 |
Restricted funds held in trust | 8 | 8 |
Intangible assets, net | 252 | 258 |
Goodwill | 302 | 321 |
Other assets | 279 | 277 |
Total Assets | 3,669 | 3,715 |
Current Liabilities: | ||
Current portion of long-term debt | 18 | 17 |
Current portion of project debt | 9 | 8 |
Accounts payable | 59 | 36 |
Accrued Liabilities, Current | 257 | 292 |
Total Current Liabilities | 343 | 353 |
Long-term debt | 2,407 | 2,366 |
Project debt | 123 | 125 |
Deferred income taxes | 365 | 372 |
Other liabilities | 128 | 123 |
Total Liabilities | 3,366 | 3,339 |
Covanta Holding Corporation stockholders' equity: | ||
Preferred stock ($0.10 par value; authorized 10 shares; none issued and outstanding) | 0 | 0 |
Common stock ($0.10 par value; authorized 250 shares; issued 136 shares, outstanding 132 shares) | 14 | 14 |
Additional paid-in capital | 860 | 857 |
Accumulated other comprehensive loss | (45) | (35) |
Accumulated deficit | (526) | (460) |
Treasury stock, at par | 0 | 0 |
Total equity | 303 | 376 |
Total Liabilities and Equity | $ 3,669 | $ 3,715 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 6 | $ 9 |
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 10 | 10 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 250 | 250 |
Common stock, shares issued | 136 | 136 |
Common stock, shares outstanding | 132 | 131 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES: | ||
Net (loss) income | $ (32) | $ 5 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization expense | 58 | 55 |
Amortization of deferred debt financing costs | 1 | 1 |
Net gain on sale of business and investments | 9 | 50 |
Impairment charges | 19 | 0 |
Stock-based compensation expense | 8 | 8 |
Equity in net income from unconsolidated investments | 1 | 0 |
Increase (Decrease) in Deferred Income Taxes | 6 | (1) |
Other, net | 3 | 0 |
Increase (Decrease) in Partners' Capital | 20 | 16 |
Changes in noncurrent assets and liabilities, net | 0 | 1 |
Net cash provided by operating activities | 61 | 37 |
INVESTING ACTIVITIES: | ||
Purchase of property, plant and equipment | (43) | (52) |
Acquisition of businesses, net of cash acquired | 0 | 2 |
Proceeds from the sale of assets, net of restricted cash | 3 | 26 |
Investment in equity affiliate | 10 | 3 |
Other, net | 1 | 0 |
Net cash used in investing activities | (51) | (27) |
FINANCING ACTIVITIES: | ||
Proceeds from Other Debt | 9 | 0 |
Proceeds from borrowings on revolving credit facility | 181 | 220 |
Payments on long-term debt | (4) | (4) |
Payments on revolving credit facility | (146) | (151) |
Payments on project debt | (1) | (10) |
Cash dividends paid to stockholders | (34) | (35) |
Payments For Insurance Premium | (8) | (7) |
Other, net | (5) | (2) |
Net cash (used in) provided by financing activities | (8) | 11 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1) | 0 |
Net increase in cash, cash equivalents and restricted cash | 1 | 21 |
Cash, cash equivalents and restricted cash at beginning of period | 63 | 105 |
Cash, cash equivalents and restricted cash at end of period | 64 | 126 |
Cash, cash equivalents and restricted cash at end of period | 42 | 88 |
Restricted funds held in trust | 14 | 31 |
Restricted funds held in trust | $ 8 | $ 7 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY Statement - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings, Unappropriated [Member] | Treasury Stock [Member] |
Shares, Outstanding | 136 | |||||
Common Stock, Value, Issued | $ 14 | |||||
Additional Paid in Capital | $ 841 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (33) | $ (33) | ||||
Retained Earnings (Accumulated Deficit) | $ (334) | |||||
Treasury Stock, Shares | 5 | |||||
Treasury Stock, Value | $ (1) | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 487 | |||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 8 | 8 | ||||
Dividends, Common Stock | (34) | 34 | ||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (8) | (8) | ||||
Stockholders' Equity, Other | (1) | $ (1) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (5) | (5) | ||||
Net Income (Loss) Attributable to Parent | 5 | 5 | ||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | |||||
Shares, Outstanding | 136 | |||||
Common Stock, Value, Issued | $ 14 | |||||
Additional Paid in Capital | 841 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (37) | |||||
Retained Earnings (Accumulated Deficit) | (364) | |||||
Treasury Stock, Shares | 5 | |||||
Treasury Stock, Value | $ 0 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 454 | |||||
Shares, Outstanding | 136 | |||||
Common Stock, Value, Issued | $ 14 | |||||
Additional Paid in Capital | 857 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (35) | (35) | ||||
Retained Earnings (Accumulated Deficit) | (460) | (460) | ||||
Treasury Stock, Shares | 5 | |||||
Treasury Stock, Value | 0 | $ 0 | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | 376 | |||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 8 | 8 | ||||
Dividends, Common Stock | (34) | (34) | ||||
Stock Issued During Period, Shares, Issued for Services | (1) | |||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (5) | (5) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (10) | (10) | ||||
Net Income (Loss) Attributable to Parent | (32) | (32) | ||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (42) | |||||
Shares, Outstanding | 136 | |||||
Common Stock, Value, Issued | $ 14 | |||||
Additional Paid in Capital | $ 860 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (45) | $ (45) | ||||
Retained Earnings (Accumulated Deficit) | (526) | $ (526) | ||||
Treasury Stock, Shares | 4 | |||||
Treasury Stock, Value | 0 | $ 0 | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 303 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | The terms “we,” “our,” “ours,” “us”, "Covanta" and “Company” refer to Covanta Holding Corporation and its subsidiaries; the term “Covanta Energy” refers to our subsidiary Covanta Energy, LLC and its subsidiaries. Organization Covanta is one of the world’s largest owners and operators of infrastructure for the conversion of waste to energy (known as “WtE”), and also owns and operates related waste transport, processing and disposal assets. WtE serves as both a sustainable waste management solution that is environmentally superior to landfilling and as a source of clean energy that reduces overall greenhouse gas emissions and is considered renewable under the laws of many states and under federal law. Our facilities are critical infrastructure assets that allow our customers, which are principally municipal entities, to provide an essential public service. Our WtE facilities earn revenue from both the disposal of waste and the generation of electricity and/or steam as well as from the sale of metal recovered during the WtE process. We process approximately 21 million tons of solid waste annually. We operate and/or have ownership positions in 41 waste-to-energy facilities, which are primarily located in North America and Ireland. In total, these assets produce approximately 10 million megawatt hours (“MWh”) of baseload electricity annually. We also operate a waste management infrastructure that is complementary to our core WtE business. In addition, we offer a variety of sustainable waste management solutions in response to customer demand, including industrial, consumer products and healthcare waste handling, treatment and assured destruction, industrial wastewater treatment and disposal, product depackaging and recycling, on-site cleaning services, and transportation services. Together with our processing of non-hazardous "profiled waste" for purposes of assured destruction or sustainability goals in our WtE facilities, we offer these services under our Covanta Environmental Solutions ("CES") brand. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes thereto required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included in our condensed consolidated financial statements. All intercompany accounts and transactions have been eliminated. Operating results for the interim period are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . The condensed consolidated balance sheet at December 31, 2019 , was derived from audited annual consolidated financial statements, but does not contain all of the notes thereto from the annual consolidated financial statements. This Form 10-Q should be read in conjunction with the Audited Consolidated Financial Statements and accompanying Notes in our 2019 Annual Report on Form 10-K. Accounting Pronouncements Recently Adopted In August 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this guidance on January 1, 2020 on a prospective basis. The adoption of this guidance did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments and off balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. We adopted this guidance on January 1, 2020 using a modified retrospective approach. The adoption of this guidance did not have a material impact on our consolidated financial statements. Goodwill Goodwill is the excess of our purchase price over the fair value of the net assets of acquired businesses. We do not amortize goodwill, but we assess our goodwill for impairment at least annually. The evaluation of goodwill requires the use of estimates of future cash flows to determine the estimated fair value of the reporting unit. All goodwill is related to our one reportable segment, which is comprised of two reporting units, North America WtE and CES. If the carrying value of the reporting unit exceeds the fair value, an impairment charge is recognized to reduce the carrying value to the fair value. The goodwill recorded for our CES reporting unit totaled $46 million as of December 31, 2019, and resulted from previously acquired materials processing facilities that are specially designed to process, treat, recycle, and dispose of solid and liquid wastes, which includes waste from the commercial sector. We performed the required annual impairment review of our recorded goodwill as of October 1, 2019. Based on the results of the test performed, we determined that the estimated fair value of the CES reporting unit exceeded the carrying value by 5% ; therefore, we did not record a goodwill impairment charge for the year ended December 31, 2019. Due to the marginal outcome of our review of goodwill recorded for our CES reporting unit as of October 1, 2019, we continued to monitor the CES reporting unit for impairment through the end of the first quarter of 2020. We considered the economic impacts of the novel coronavirus ("COVID-19") pandemic and the decline in waste volumes from the commercial and industrial sectors to be a triggering event and reviewed the goodwill held at the CES reporting unit. We performed an interim impairment test via a quantitative valuation as of March 31, 2020. As a result, for the three months ended March 31, 2020, we recorded an impairment of $16 million , net of tax benefit of $3 million , which represents the carrying amount of our CES reporting unit in excess of its estimated fair value as of the testing date. For our CES reporting unit, we determined an estimate of the fair value of this reporting unit by combining both the income and market approaches. The market approach was based on current trading multiples of EBITDA for companies operating in businesses similar to our CES reporting unit. In performing the test under the income approach, we utilized a discount rate of 12% and a long-term terminal growth rate of 2.5% beyond our planning period. The assumptions used in evaluating goodwill for impairment are subject to change and are tracked against historical performance. While we believe the assumptions used were reasonable and commensurate with the views of a market participant, as we continue to monitor the CES reporting unit for impairment through the end of 2020, changes in key assumptions, including increasing the discount rate, lowering forecasts for revenue, operating margin or lowering the long-term growth rate for our CES reporting unit, could result in further impairments. We did not determine there to be a triggering event for our North America WtE reporting unit and concluded that the fair value of this reporting unit was not likely to be lower than the carrying value as of the interim testing date. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | The following table summarizes recent ASU's issued by the FASB that could have a material impact on our consolidated financial statements. Standard Description Effective Date Effect on the financial statements or other significant matters ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting This standard provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate (LIBOR). The amendments are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. First quarter of 2020 through December 31, 2022. Generally, our debt agreements and interest rate derivatives contracts include a transition clause in the event LIBOR is discontinued, as such, we do not expect the transition of LIBOR to have a material impact on our financial statements. ASU 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This standard was issued with the intent to simplify various aspects of income taxes. The standard requires a prospective basis of adoption and a retrospective basis adjustment for amendments related to franchise taxes. First quarter of 2021, early adoption is permitted. We are currently evaluating the impact this standard will have on our consolidated financial statements. |
NEW BUSINESS AND ASSET MANAGMEN
NEW BUSINESS AND ASSET MANAGMENT NEW BUSINESS AND ASSET MANAGMENT | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
NEW BUSINESS AND ASSET MANAGEMENT | NOTE 3. NEW BUSINESS AND ASSET MANAGEMENT Zhao County, China Venture On December 31, 2019 , we made an equity investment in a venture that signed a concession agreement with Zhao County, China for the construction and operation of a new 1,200 ton-per-day WtE facility located approximately 200 miles from Beijing ("Zhao County"). The project is being developed jointly by Covanta and a strategic local partner, Longking Energy Development Co. Ltd. Construction began in April 2020, with completion expected in 2021. As of March 31, 2020 and December 31, 2019 , our equity investment in the venture totaled RMB 35 million ( $5 million ), which amounted to a 26% ownership interest. This investment is accounted for under the equity method of accounting and was included in Other assets on our consolidated balance sheet. Pursuant to the agreement, we are required to contribute an additional RMB 61 million ( $9 million ) by the end of 2021 and our eventual ownership interest in the venture is expected to be 49% . In January 2020, in connection with our Zhao County agreement, we obtained local equity financing in the amount of RMB 61 million ( $9 million ), the proceeds of which we provided to the project in the form of a shareholder loan. This equity financing is due in January 2022, is collateralized through a pledge of our equity in the project and may be converted to equity prior to 2022. Green Investment Group Joint Venture Newhurst In February 2020, we reached financial close on the Newhurst Energy Recovery Facility (“Newhurst”), a 350,000 metric ton-per-year, 42 megawatt WtE facility under construction in Leicestershire, England. Newhurst is our third investment in the UK with our strategic partner Green Investment Group Limited ("GIG"). Through a 50/50 jointly-owned and governed entity (“Covanta Green”), we and GIG own a 50% interest in Newhurst, with Biffa plc, a UK waste services provider, holding the remaining 50% interest. Biffa will provide approximately 70% of the waste supply to the project, and we will provide operations and maintenance services, in each case under a 20-year arrangement. Newhurst is expected to commence commercial operations in 2023. In connection with the transaction, we received $7 million ( £5 million ) of total consideration for the value of our development costs incurred to date and related fees and for GIG’s right to invest 25% in the project ( 50% investment in Covanta Green). For the three months ended March 31, 2020, as a result of this consideration and a step-up in the fair value of our retained equity investment, we recorded a gain of $9 million ( £7 million ) in Net gain on sale of business and investments in our condensed consolidated statement of operations. As of March 31, 2020 , $4 million of the consideration received remains in Covanta Green. As of March 31, 2020 , our equity method investment in the JV of $6 million was included in Other assets in our condensed consolidated balance sheet. The fair value of our retained equity investment in Covanta Green was determined by the fair value of the consideration received from GIG for the right to invest in 25% in the project. Rookery In March 2019, we reached financial close on the Rookery South Energy Recovery Facility (“Rookery”), a 1,600 metric ton-per-day, 60 megawatt WtE facility under construction in Bedfordshire, England. Rookery is our second investment in the UK with our strategic partner, GIG. Through Covanta Green, we and GIG own an 80% interest in the project. We co-developed the project with Veolia ES (UK) Limited (“Veolia”), who owns the remaining 20% . We provide technical oversight during construction and will provide operations and maintenance (“O&M”) services for the facility, and Veolia will be responsible for providing at least 70% of the waste supply for the project. The facility is expected to commence commercial operations in 2022. In connection with the transaction, we received $44 million ( £34 million ) of total consideration for the value of our development costs incurred to date and related fees and for GIG’s right to invest 40% in the project ( 50% investment in Covanta Green). For the three months ended March 31, 2019 , as a result of this consideration and a step-up in the fair value of our retained equity investment, we recorded a gain of $57 million in Net gain on sale of business and investments in our condensed consolidated statement of operations. As of March 31, 2020 , $18 million of the consideration received remains in Covanta Green. As of March 31, 2020 and December 31, 2019 , our equity method investment of $4 million and $9 million , respectively, was included in Other assets on our condensed consolidated balance sheets. The fair value of our retained equity investment in Covanta Green was determined by the fair value of the consideration received from GIG for the right to invest in 40% in the project. Divestiture of Springfield and Pittsfield WtE facilities During the first quarter of 2019, as part of our ongoing asset rationalization and portfolio optimization efforts, we divested our Pittsfield and Springfield WtE facilities . During the three months ended March 31, 2019 , we recognized a loss of $9 million , which was included in Net gain on sale of business and investments in our condensed consolidated statement of operations. |
EARNINGS PER SHARE ("EPS") AND
EARNINGS PER SHARE ("EPS") AND EQUITY (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE AND EQUITY | Earnings Per Share We calculate basic Earnings Per Share ("EPS") using net earnings for the period and the weighted average number of outstanding shares of our common stock, par value $0.10 per share, during the period. Diluted earnings per share computations, as calculated under the treasury stock method, include the weighted average number of shares of additional outstanding common stock issuable for stock options, restricted stock awards and restricted stock units whether or not currently exercisable. Diluted earnings per share does not include securities if their effect was anti-dilutive. Basic and diluted weighted average shares outstanding were as follows (in millions): Three Months Ended March 31, 2020 2019 Basic weighted average common shares outstanding 131 131 Dilutive effect of stock options, restricted stock and restricted stock units — 2 Diluted weighted average common shares outstanding 131 133 Anti-dilutive stock options, restricted stock and restricted stock units excluded from the calculation of EPS 3 — Equity Accumulated Other Comprehensive (Loss) Income ("AOCI") The changes in accumulated other comprehensive loss are as follows (in millions): Foreign Currency Translation Pension and Other Postretirement Plan Unrecognized Net Gain Net Unrealized Loss On Derivatives Total Balance at December 31, 2018 $ (23 ) $ 2 $ (12 ) $ (33 ) Cumulative effect change in accounting for ASU 2018-02 — 1 — 1 Balance at January 1, 2019 (23 ) 3 (12 ) (32 ) Other comprehensive loss (5 ) — — (5 ) Balance at March 31, 2019 $ (28 ) $ 3 $ (12 ) $ (37 ) Balance at December 31, 2019 $ (30 ) $ 3 $ (8 ) $ (35 ) Other comprehensive loss (6 ) — (4 ) (10 ) Balance at March 31, 2020 $ (36 ) $ 3 $ (12 ) $ (45 ) |
REVENUES (Notes)
REVENUES (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Disaggregation of revenue A disaggregation of revenue from contracts with customers is presented in our condensed consolidated statements of operations for the three months ended March 31, 2020 and 2019 . We have one reportable segment which comprises our entire operating business. Performance Obligations and Transaction Price Allocated to Remaining Performance Obligations ASC 606 requires disclosure of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of March 31, 2020 . The guidance provides certain conditions (identified as "practical expedients") that limit this disclosure requirement. We have contracts that meet the following practical expedients provided by ASC 606: 1. The performance obligation is part of a contract that has an original expected duration of one year or less; 2. Revenue is recognized from the satisfaction of the performance obligations in the amount billable to our customer that corresponds directly with the value to the customer of our performance completed to date (i.e. “right-to-invoice” practical expedient); and/or 3. The variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct service or a series of distinct services that are substantially the same and that have the same pattern of transfer to our customer (i.e. “series practical expedient”). Our remaining performance obligation primarily consists of the fixed consideration contained in our contracts. As of March 31, 2020 our total remaining performance obligation was $6.2 billion , of which we expect to recognize 8% in 2020 and 10% in 2021. Contract Balances The following table reflects the balance in our contract assets, which we classify as accounts receivable unbilled and present net in Receivables, and our contract liabilities, which we classify as deferred revenue and present in Accrued expenses and other current liabilities in our condensed consolidated balance sheet (in millions): March 31, December 31, Unbilled receivables $ 15 $ 16 Deferred revenue $ 23 $ 18 For the three months ended March 31, 2020 , revenue recognized that was included in deferred revenue in our condensed consolidated balance sheet at the beginning of the period totaled $6 million . |
STOCK-BASED AWARD PLANS (Notes)
STOCK-BASED AWARD PLANS (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED AWARD PLANS | During the three months ended March 31, 2020 , we awarded certain employees grants of 1,670,369 restricted stock units ("RSUs"). The RSUs will be expensed over the requisite service period. The terms of the RSUs include vesting provisions based solely on continued service. If the service criteria are satisfied, the RSUs will generally vest during March of 2021 , 2022 , and 2023 . During the three months ended March 31, 2020 , we awarded 11,013 RSUs for quarterly director fees to certain of our directors who elected to receive RSUs in lieu of cash payments. We determined the service vesting condition of these RSU's to be non-substantive and, in accordance with accounting principles for stock compensation, recorded the entire fair value of the awards as compensation expense on the grant date. During the three months ended March 31, 2020 , we awarded certain employees grants of 629,094 Free Cash Flow per share ("FCF") and total shareholder return ("TSR") performance awards. The FCF awards and the TSR awards will each cliff vest at the end of the 3 year performance period, however, the number of shares delivered will vary based upon the attained level of performance and may range from 0 to 2 times the number of target units awarded. During the three months ended March 31, 2020 , we withheld 435,029 shares of our common stock in connection with tax withholdings for vested stock awards. Compensation expense related to our stock-based awards was as follows (in millions): Three Months Ended March 31, 2020 2019 Share based compensation expense $ 8 $ 8 Unrecognized stock-based compensation expense and weighted-average years to be recognized are as follows (in millions, except for weighted average years): As of March 31, 2020 Unrecognized stock- based compensation Weighted-average years to be recognized Restricted stock units $ 20 1.8 Performance awards $ 10 2.2 Restricted stock awards $ — 1.0 |
SUPPLEMENTARY INFORMATION (Note
SUPPLEMENTARY INFORMATION (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTARY INFORMATION | Pass through costs Pass through costs are costs for which we receive a direct contractually committed reimbursement from the public sector client that sponsors a WtE project. These costs generally include utility charges, insurance premiums, ash residue transportation and disposal, and certain chemical costs. These costs are recorded net of public sector client reimbursements as a reduction to Plant operating expense in our condensed consolidated statement of operations. Pass through costs were as follows (in millions): Three Months Ended March 31, 2020 2019 Pass through costs $ 13 $ 13 |
INCOME TAXES (Notes)
INCOME TAXES (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | We generally record our interim tax provision based upon a projection of the Company’s annual effective tax rate ("AETR"). This AETR is applied to the year-to-date consolidated pre-tax income to determine the interim provision for income taxes before discrete items. We update the AETR on a quarterly basis as the pre-tax income projections are revised and tax laws are enacted. The effective tax rate ("ETR") each period is impacted by a number of factors, including the relative mix of domestic and international earnings, adjustments to the valuation allowances and discrete items. The currently forecasted ETR may vary from the actual year-end due to the changes in these factors. The Company’s global ETR for the three months ended March 31, 2020 and 2019 was 13% and 31% , respectively, including discrete tax items. The current year decrease in the ETR was primarily due to the combined effect of (i) the overall decrease in pre-tax income; (ii) the impact of the gain on the Newhurst transaction in 2020 compared to gain on the Rookery transaction in 2019; and (iii) a discrete tax expense related to the reduction in the value of stock based compensation from grant date. On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) into law providing certain relief as a result of the COVID-19 pandemic. The CARES Act, among other things, includes provisions relating to net operating loss carryback periods, alternative minimum tax credit refunds, modification to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The Company intends to take advantage of the acceleration of alternative minimum tax credit refunds and may elect the temporary increase of the limitation on interest deduction to 50%. The Company determined that the CARES Act will not have a material impact on our consolidated financial statements. |
ACCOUNTS RECEIVABLE SECURITIZAT
ACCOUNTS RECEIVABLE SECURITIZATION | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE SECURITIZATION | NOTE 9. ACCOUNTS RECEIVABLE SECURITIZATION In December 2019, we entered into an agreement whereby we will regularly sell certain receivables on a revolving basis to third-party financial institutions (the “Purchasers”) up to an aggregate purchase limit of $100 million (the “Receivables Purchase Agreement" or “RPA”). Transfers under the RPA meet the requirements to be accounted for as sales in accordance with the Transfers and Servicing topic of FASB Accounting Standards Codification. We receive a discounted purchase price for each receivable sold under the RPA and will continue to service and administer the subject receivables. The weighted-average discount rate paid on accounts receivable sold was 2.22% for the three months ended March 31, 2020 . Amounts recognized in connection with the RPA were as follows (in millions): Three Months Ended March 31, 2020 2019 Accounts receivable sold and derecognized $ 194 $ — Cash proceeds received (1) $ 194 $ — March 31, 2020 December 31, 2019 Pledged receivables (2) $ 117 $ 142 (1) Represents proceeds from collections reinvested in revolving-period transfers. This amount was included in Net cash provided by operating activities on our consolidated statement of cash flows. (2) Secures our obligations under the RPA and provides a guarantee for the prompt payment, not collection, of all payment obligations relating to the sold receivables. We are not required to offer to sell any receivables and the Purchasers are not committed to purchase any receivable offered. The RPA has a scheduled termination date of December 5, 2020 . Additionally, we may terminate the RPA at any time upon 30 days’ prior written notice. The agreement governing the RPA contains certain covenants and termination events. An occurrence of an event of default or the occurrence of a termination event could lead to the termination of the RPA. As of March 31, 2020 , we were in compliance with the covenants, and no termination events had occurred. As of March 31, 2020 , $100 million , the maximum amount available under the RPA, was fully utilized. |
CREDIT LOSSES (Notes)
CREDIT LOSSES (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
CREDIT LOSSES | NOTE 10. CREDIT LOSSES We are exposed to credit losses primarily from our trade receivables from waste disposal services, sale of electricity and/or steam and the sale of ferrous and non-ferrous metals. For our trade receivables, we assess each counterparty’s ability to pay for service by conducting a credit review. The credit review considers the counterparty’s established credit rating or our assessment of the counterparty’s creditworthiness based on our analysis of their financial statements when a credit rating is not available. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. Our activities include timely account reconciliation, dispute resolution and payment confirmation. Changes in the allowance for credit losses of our trade receivables for the three months ended March 31, 2020 were as follows: Balance as of December 31, 2019 $ 9 Write-offs charged against the allowance (3 ) Balance as of March 31, 2020 $ 6 The Company held the followings shareholder loans in connection with our equity method investments: March 31, 2020 December 31, 2019 Included in prepaid expenses and other assets $ 22 $ 22 Included in other assets - long term 25 15 $ 47 $ 37 We assess the collectability of the shareholder loans each reporting period through the impairment analysis procedures of our equity method investments which considers the loss history of the investments and the viability of the associated development projects. As of March 31, 2020 there were no credit losses recorded associated with our shareholder loans. |
FINANCIAL INSTRUMENTS (Notes)
FINANCIAL INSTRUMENTS (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | Fair Value Measurements Authoritative guidance associated with fair value measurements provides a framework for measuring fair value and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs), then significant other observable inputs (Level 2 inputs) and the lowest priority to significant unobservable inputs (Level 3 inputs). The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • For marketable securities, the carrying value of these amounts is a reasonable estimate of their fair value. • Fair values for long-term debt and project debt are determined using quoted market prices (Level 1). • The fair value of our floating to fixed rate interest rate swaps is determined using discounted cash flow valuation methodologies that apply the appropriate forward floating rate curve observable in the market to the contractual terms of our swap agreements. The fair value of the interest rate swaps is adjusted to reflect counterparty risk of non-performance and is based on the counterparty’s credit spread in the credit derivatives market. • The fair values of our energy hedges were determined using the spread between our fixed price and the forward curve information available within the market. The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we would realize in a current market exchange and are based on pertinent information available to us as of March 31, 2020 . Such amounts have not been comprehensively revalued for purposes of these financial statements and current estimates of fair value may differ significantly from the amounts presented herein. The following table presents information about the fair value measurement of our assets and liabilities as of March 31, 2020 and December 31, 2019 (in millions): Financial Instruments Recorded at Fair Value on a Recurring Basis: Fair Value Measurement Level March 31, 2020 December 31, 2019 Assets: Investments — mutual and bond funds (1) 1 $ 1 $ 2 Derivative asset — energy hedges (2) 2 20 12 Total assets $ 21 $ 14 Liabilities: Derivative liability — interest rate swaps (3) 2 10 2 Total liabilities $ 10 $ 2 (1) Included in Other assets in the condensed consolidated balance sheets. (2) The short-term balance was included in Prepaid expenses and other current assets and the long-term balance was included in Other assets in the consolidated balance sheets. (3) The short-term balance was included in Accrued expenses and other current liabilities and the long-term balance was included in Other liabilities in the condensed consolidated balance sheets. The following financial instruments are recorded at their carrying amount (in millions): As of March 31, 2020 As of December 31, 2019 Financial Instruments Recorded at Carrying Amount: Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Liabilities: Long-term debt $ 2,425 $ 2,275 $ 2,383 $ 2,459 Project debt $ 132 $ 136 $ 133 $ 138 We are required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, accounts receivables, prepaid expenses and other assets, accounts payable and accrued expenses approximates their carrying value on the condensed consolidated balance sheets due to their short-term nature. In addition to the recurring fair value measurements, certain assets are measured at fair value on a non-recurring basis when an indication of impairment is identified. Long-lived assets, such as property and equipment and identifiable intangibles with finite useful lives, are periodically evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purpose of impairment testing, we review the recoverable amount of individual assets or groups of assets at the lowest level of which there are there are identifiable cash flows, which is generally at the facility level. Assets are reviewed using factors including, but not limited to, our future operating plans and projected cash flows. The determination of whether impairment has occurred is based on the assets fair value as compared to the carrying value. Fair value is generally determined using an income approach, which requires discounting the estimated future cash flows associated with the asset. If the asset carrying amount exceeds its fair value, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. |
DERIVATIVE INSTRUMENTS (Notes)
DERIVATIVE INSTRUMENTS (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | Energy Price Risk We have entered into a variety of contractual hedging arrangements, designated as cash flow hedges, in order to mitigate our exposure to energy market risk, and will continue to do so in the future. Our efforts in this regard involve only mitigation of price volatility for the energy we produce and do not involve taking positions (either long or short) on energy prices in excess of our physical generation. The amount of energy generation which we have hedged on a forward basis under agreements with various financial institutions as of March 31, 2020 is indicated in the following table (in millions): Calendar Year Hedged MWh 2020 2.5 2021 1.8 2022 0.1 Total 4.4 As of March 31, 2020 , the fair value of the energy derivative asset was $20 million . The change in fair value was recorded as a component of AOCI. During the three months ended March 31, 2020 , cash provided by and used in energy derivative settlements of $18 million and zero , respectively, was included in net cash provided by operating activities on our condensed consolidated statement of cash flows. During the three months ended March 31, 2019 , cash provided by and used in energy derivative settlements of $10 million and $1 million , respectively, was included in the change in net cash provided by operating activities on our condensed consolidated statement of cash flows. Interest Rate Swaps We may utilize derivative instruments to reduce our exposure to fluctuations in cash flows due to changes in variable interest rates paid on our direct borrowings under the senior secured revolving credit facility and the term loan of our subsidiary Covanta Energy (collectively referred to as the "Credit Facilities"). To achieve that objective, we entered into pay-fixed, receive-variable swap agreements on $200 million notional amount of our variable rate debt under the Credit Facilities during 2019 . The interest rate swaps are designated specifically to the Credit Facilities as a cash flow hedge and are recorded at fair value with changes in fair value recorded as a component of AOCI. For further information on our Credit Facilities see Note 13. Consolidated Debt . As of March 31, 2020 , the fair value of the interest rate swap derivative liability of $10 million |
CONSOLIDATED DEBT (Notes)
CONSOLIDATED DEBT (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
CONSOLIDATED DEBT | Consolidated debt is as follows (in millions): Average Rate (1) March 31, 2020 December 31, 2019 LONG-TERM DEBT: Revolving credit facility 3.49% $ 218 $ 183 Term loan, net 3.68% 382 384 Credit Facilities subtotal 600 567 Senior Notes, net of deferred financing costs 1,186 1,186 Tax-Exempt Bonds, net of deferred financing costs 539 539 China Venture Loan 9 — Equipment financing arrangements 83 85 Finance Leases (2) 8 6 Total long-term debt 2,425 2,383 Less: Current portion (18 ) (17 ) Noncurrent long-term debt $ 2,407 $ 2,366 PROJECT DEBT: Total project debt, net of deferred financing costs and unamortized debt premium $ 132 $ 133 Less: Current portion (9 ) (8 ) Noncurrent project debt $ 123 $ 125 TOTAL CONSOLIDATED DEBT $ 2,557 $ 2,516 Less: Current debt (27 ) (25 ) TOTAL NONCURRENT CONSOLIDATED DEBT $ 2,530 $ 2,491 (1) As of March 31, 2020 and December 31, 2019 , we entered into interest rate swap agreements to swap the LIBOR portion of our floating interest rate to a fixed rate for our variable rate debt under the Credit Facilities. See Note 12. Derivative Instruments for further information. (2) Excludes Union County WtE facility finance lease which is presented within project debt. Our subsidiary, Covanta Energy, has a senior secured credit facility consisting of a revolving credit facility (the “Revolving Credit Facility”) and a term loan (the “Term Loan”). The nature and terms of our Credit Facilities, Senior Notes, Tax-Exempt Bonds, project debt and other long-term debt are described in detail in Note 15. Consolidated Debt in our 2019 Annual Report on Form 10-K. Zhao County, China Venture Loan In January 2020, in connection with our Zhao County agreement, we received proceeds of RMB 61 million ( $9 million ) through a loan agreement with a third party. We subsequently contributed the entire amount of the loan proceeds to the equity investment entity which owns the project in the form of a shareholder loan which is convertible to equity. See Note 3. New Business and Asset Management for further information. Revolving Credit Facility As of March 31, 2020 , we had unutilized capacity under the Revolving Credit Facility as follows (in millions): Total Facility Commitment Expiring Direct Borrowings Outstanding Letters of Credit Unutilized Capacity Revolving Credit Facility $ 900 2023 $ 218 $ 257 $ 425 Credit Agreement Covenants The loan documentation governing the Credit Facilities contains various affirmative and negative covenants, as well as financial maintenance covenants (financial ratios), that limit our ability to engage in certain types of transactions. We were in compliance with all of the affirmative and negative covenants under the Credit Facilities as of March 31, 2020 . |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | NOTE 14. LEASES The components of lease expense were as follows (in millions): Three Months Ended March 31, 2020 2019 Finance lease: Amortization of assets, included in Depreciation and amortization expense $ 2 $ 2 Interest on lease liabilities, included in Interest expense 1 — Operating lease: Amortization of assets, included in Total operating expense 2 2 Interest on lease liabilities, included in Total operating expense 1 1 Total net lease cost $ 6 $ 5 Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): March 31, 2020 December 31, 2019 Operating leases: Operating lease ROU assets, included in Other assets $ 46 $ 46 Current operating lease liabilities, included in Accrued expenses and other current liabilities $ 6 $ 6 Noncurrent operating lease liabilities, included in Other liabilities 46 46 Total operating lease liabilities $ 52 $ 52 Finance leases: Property and equipment, at cost $ 170 $ 168 Accumulated amortization (27 ) (25 ) Property and equipment, net $ 143 $ 143 Current obligations of finance leases, included in Current portion of long-term debt $ 7 $ 6 Finance leases, net of current obligations, included in Long-term debt 83 84 Total finance lease liabilities $ 90 $ 90 Supplemental cash flow and other information related to leases was as follows (in millions): Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ (2 ) $ (2 ) Financing cash flows related to finance leases $ (2 ) $ (1 ) Weighted average remaining lease term (in years): Operating leases 11.6 12.9 Finance leases 31.8 33.7 Weighted average discount rate: Operating leases 4.63 % 4.66 % Finance leases 5.06 % 5.05 % Maturities of lease liabilities were as follows (in millions): March 31, 2020 Operating Leases Finance Leases Remainder of 2020 $ 6 $ 6 2021 9 12 2022 7 12 2023 7 12 2024 6 11 2025 and thereafter 33 105 Total lease payments 68 158 Less: Amounts representing interest (16 ) (68 ) Total lease obligations $ 52 $ 90 As of March 31, 2020 |
LEASES | The components of lease expense were as follows (in millions): Three Months Ended March 31, 2020 2019 Finance lease: Amortization of assets, included in Depreciation and amortization expense $ 2 $ 2 Interest on lease liabilities, included in Interest expense 1 — Operating lease: Amortization of assets, included in Total operating expense 2 2 Interest on lease liabilities, included in Total operating expense 1 1 Total net lease cost $ 6 $ 5 Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): March 31, 2020 December 31, 2019 Operating leases: Operating lease ROU assets, included in Other assets $ 46 $ 46 Current operating lease liabilities, included in Accrued expenses and other current liabilities $ 6 $ 6 Noncurrent operating lease liabilities, included in Other liabilities 46 46 Total operating lease liabilities $ 52 $ 52 Finance leases: Property and equipment, at cost $ 170 $ 168 Accumulated amortization (27 ) (25 ) Property and equipment, net $ 143 $ 143 Current obligations of finance leases, included in Current portion of long-term debt $ 7 $ 6 Finance leases, net of current obligations, included in Long-term debt 83 84 Total finance lease liabilities $ 90 $ 90 Supplemental cash flow and other information related to leases was as follows (in millions): Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ (2 ) $ (2 ) Financing cash flows related to finance leases $ (2 ) $ (1 ) Weighted average remaining lease term (in years): Operating leases 11.6 12.9 Finance leases 31.8 33.7 Weighted average discount rate: Operating leases 4.63 % 4.66 % Finance leases 5.06 % 5.05 % Maturities of lease liabilities were as follows (in millions): March 31, 2020 Operating Leases Finance Leases Remainder of 2020 $ 6 $ 6 2021 9 12 2022 7 12 2023 7 12 2024 6 11 2025 and thereafter 33 105 Total lease payments 68 158 Less: Amounts representing interest (16 ) (68 ) Total lease obligations $ 52 $ 90 As of March 31, 2020 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | We and/or our subsidiaries are party to a number of claims, lawsuits and pending actions, most of which are routine and all of which are incidental to our business. We assess the likelihood of potential losses on an ongoing basis to determine whether losses are considered probable and reasonably estimable prior to recording an estimate of the outcome. If we can only estimate the range of a possible loss, an amount representing the low end of the range of possible outcomes is recorded. The final consequences of these proceedings are not presently determinable with certainty. As of March 31, 2020 and December 31, 2019 , accruals for our loss contingencies recorded in Accrued expenses and other current liabilities in our condensed consolidated balance sheets were $3 million and $3 million , respectively. Environmental Matters Our operations are subject to environmental regulatory laws and environmental remediation laws. Although our operations are occasionally subject to proceedings and orders pertaining to emissions into the environment and other environmental violations, which may result in fines, penalties, damages or other sanctions, we believe that we are in substantial compliance with existing environmental laws and regulations. We may be identified, along with other entities, as being among parties potentially responsible for contribution to costs associated with the correction and remediation of environmental conditions at disposal sites subject to federal and/or analogous state laws. In certain instances, we may be exposed to joint and several liabilities for remedial action or damages. Our liability in connection with such environmental claims will depend on many factors, including our volumetric share of waste, the total cost of remediation, and the financial viability of other companies that also sent waste to a given site and, in the case of divested operations, the contractual arrangement with the purchaser of such operations. The potential costs related to the matters described below and the possible impact on future operations are uncertain due in part to the complexity of governmental laws and regulations and their interpretations, the varying costs and effectiveness of cleanup technologies, the uncertain level of insurance or other types of recovery and the questionable level of our responsibility. Although the ultimate outcome and expense of any litigation, including environmental remediation, is uncertain, we believe that the following proceedings will not have a material adverse effect on our consolidated results of operations, financial position or cash flows. Lower Passaic River Matter. In August 2004, the United States Environmental Protection Agency (the “EPA”) notified our subsidiary, Covanta Essex Company (“Essex”) that it was a potentially responsible party (“PRP”) for Superfund response actions in the Lower Passaic River Study Area (“LPRSA”), a 17 mile stretch of river in northern New Jersey. Essex’s LPRSA costs to date are not material to its financial position and results of operations; however, to date the EPA has not sought any LPRSA remedial costs or natural resource damages against PRPs. In March 2016, the EPA released the Record of Decision (“ROD”) for its Focused Feasibility Study of the lower 8 miles of the LPRSA; the EPA’s selected remedy includes capping/dredging of sediment, institutional controls and long-term monitoring. In June 2018, PRP Occidental Chemical Corporation (“OCC”) filed a federal Superfund lawsuit against 120 PRPs including Essex with respect to past and future response costs expended by OCC with respect to the LPRSA. The Essex facility started operating in 1990 and Essex does not believe there have been any releases to the LPRSA, but in any event believes any releases would have been de minimis considering the history of the LPRSA; however, it is not possible at this time to predict that outcome or to estimate the range of possible loss relating to Essex’s liability in the matter, including for LPRSA remedial costs and/or natural resource damages. Other Commitments Other commitments as of March 31, 2020 were as follows (in millions): Letters of credit issued under the Revolving Credit Facility $ 257 Letters of credit - other 38 Surety bonds 131 Total other commitments — net $ 426 The letters of credit were issued to secure our performance under various contractual undertakings related to our domestic and international projects or to secure obligations under our insurance program. Each letter of credit relating to a project is required to be maintained in effect for the period specified in related project contracts, and generally may be drawn if it is not renewed prior to expiration of that period. We believe that we will be able to fully perform under our contracts to which these existing letters of credit relate, and that it is unlikely that letters of credit would be drawn because of a default of our performance obligations. If any of these letters of credit were to be drawn by the beneficiary, the amount drawn would be immediately repayable by us to the issuing bank. If we do not immediately repay such amounts drawn under letters of credit issued under the Revolving Credit Facility, unreimbursed amounts would be treated under the Credit Facilities as either additional term loans or as revolving loans. The surety bonds listed in the table above relate primarily to construction and performance obligations and support for other obligations, including closure requirements of various energy projects when such projects cease operating. Were these bonds to be drawn upon, we would have a contractual obligation to indemnify the surety company. The bonds do not have stated expiration dates. Rather, we are released from the bonds as the underlying performance is completed. We have certain contingent obligations related to our Senior Notes and Tax-Exempt Bonds. Holders may require us to repurchase their Senior Notes and Tax-Exempt Bonds if a fundamental change occurs. For specific criteria related to the redemption features of the Senior Notes and Tax-Exempt Bonds, see Note 13. Consolidated Debt of this report and Item 8. Financial Statements And Supplementary Data — Note 15. Consolidated Debt of our 2019 Annual Report on Form 10-K. We have issued or are party to guarantees and related contractual support obligations undertaken pursuant to agreements to construct and operate waste and energy facilities. For some projects, such performance guarantees include obligations to repay certain financial obligations if the project revenue is insufficient to do so, or to obtain or guarantee financing for a project. With respect to our businesses, we have issued guarantees to municipal clients and other parties that our subsidiaries will perform in accordance with contractual terms, including, where required, the payment of damages or other obligations. Additionally, damages payable under such guarantees for our waste-to-energy facilities could expose us to recourse liability on project debt. If we must perform under one or more of such guarantees, our liability for damages upon contract termination would be reduced by funds held in trust and proceeds from sales of the facilities securing the project debt and is presently not estimable. Depending upon the circumstances giving rise to such damages, the contractual terms of the applicable contracts, and the contract counterparty’s choice of remedy at the time a claim against a guarantee is made, the amounts owed pursuant to one or more of such guarantees could be greater than our then-available sources of funds. To date, we have not incurred material liabilities under such guarantees. We have entered into certain guarantees of performance in connection with our recent divestiture activities. Under the terms of the arrangements, we guarantee performance should the guaranteed party fail to fulfill its obligations under the specified arrangements. |
SUBSEQUENT EVENT (Notes)
SUBSEQUENT EVENT (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 16. SUBSEQUENT EVENT On April 14, 2020, we announced certain cost reduction measures and planned capital allocation updates in light of uncertainty around the potential financial impacts of the COVID-19 pandemic on our business, including: • Eliminating all non-essential travel and reducing discretionary spend; • Enacting a hiring freeze for new corporate employees; • Lowering compensation through a 50% reduction in CEO's base salary amount, a 25% reduction in payment of executive leadership base salary amounts, and a 20% reduction in cash compensation for all corporate support employees through a combination of wage reductions and furloughs which are expected to remain in place through mid-July 2020; • Lowering the cash portion of Board of Directors fees by 60% during the same time period as management salary reductions and furloughs; • Focusing growth investments for the remainder of 2020 primarily on UK projects and the start-up of our first Total Ash Processing System; and • Announcing plans to lower the annualized dividend payout to $0.32 per share. As the COVID-19 pandemic is ongoing and the near term worldwide economic outlook remains uncertain, we cannot reasonably estimate the length or severity of this pandemic, or the extent to which the disruption may materially impact the Company's consolidated financial statements. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes thereto required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included in our condensed consolidated financial statements. All intercompany accounts and transactions have been eliminated. Operating results for the interim period are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . The condensed consolidated balance sheet at December 31, 2019 , was derived from audited annual consolidated financial statements, but does not contain all of the notes thereto from the annual consolidated financial statements. This Form 10-Q should be read in conjunction with the Audited Consolidated Financial Statements and accompanying Notes in our |
Accounting Pronouncements Recently Adopted Accounting Pronouncements Recently Adopted Accounting Pronouncements Recently Adopted Acounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In August 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this guidance on January 1, 2020 on a prospective basis. The adoption of this guidance did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments and off balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. We adopted this guidance on January 1, 2020 using a modified retrospective approach. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Goodwill | Goodwill Goodwill is the excess of our purchase price over the fair value of the net assets of acquired businesses. We do not amortize goodwill, but we assess our goodwill for impairment at least annually. The evaluation of goodwill requires the use of estimates of future cash flows to determine the estimated fair value of the reporting unit. All goodwill is related to our one reportable segment, which is comprised of two reporting units, North America WtE and CES. If the carrying value of the reporting unit exceeds the fair value, an impairment charge is recognized to reduce the carrying value to the fair value. |
Earnings Per Share | Earnings Per Share We calculate basic Earnings Per Share ("EPS") using net earnings for the period and the weighted average number of outstanding shares of our common stock, par value $0.10 per share, during the period. Diluted earnings per share computations, as calculated under the treasury stock method, include the weighted average number of shares of additional outstanding common stock issuable for stock options, restricted stock awards and restricted stock units whether or not currently exercisable. Diluted earnings per share does not include securities if their effect was anti-dilutive. |
Pass Through Costs | Pass through costs Pass through costs are costs for which we receive a direct contractually committed reimbursement from the public sector client that sponsors a WtE project. These costs generally include utility charges, insurance premiums, ash residue transportation and disposal, and certain chemical costs. These costs are recorded net of public sector client reimbursements as a reduction to Plant operating expense in our condensed consolidated statement of operations. |
Fair Value Measurements | Fair Value Measurements Authoritative guidance associated with fair value measurements provides a framework for measuring fair value and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs), then significant other observable inputs (Level 2 inputs) and the lowest priority to significant unobservable inputs (Level 3 inputs). The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • For marketable securities, the carrying value of these amounts is a reasonable estimate of their fair value. • Fair values for long-term debt and project debt are determined using quoted market prices (Level 1). • The fair value of our floating to fixed rate interest rate swaps is determined using discounted cash flow valuation methodologies that apply the appropriate forward floating rate curve observable in the market to the contractual terms of our swap agreements. The fair value of the interest rate swaps is adjusted to reflect counterparty risk of non-performance and is based on the counterparty’s credit spread in the credit derivatives market. • The fair values of our energy hedges were determined using the spread between our fixed price and the forward curve information available within the market. The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we would realize in a current market exchange and are based on pertinent information available to us as of March 31, 2020 . Such amounts have not been comprehensively revalued for purposes of these financial statements and current estimates of fair value may differ significantly from the amounts presented herein. |
Commitments and Contingencies | We and/or our subsidiaries are party to a number of claims, lawsuits and pending actions, most of which are routine and all of which are incidental to our business. We assess the likelihood of potential losses on an ongoing basis to determine whether losses are considered probable and reasonably estimable prior to recording an estimate of the outcome. If we can only estimate the range of a possible loss, an amount representing the low end of the range of possible outcomes is recorded. The final consequences of these proceedings are not presently determinable with certainty. |
EARNINGS PER SHARE ("EPS") AN_2
EARNINGS PER SHARE ("EPS") AND EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per Share | Basic and diluted weighted average shares outstanding were as follows (in millions): Three Months Ended March 31, 2020 2019 Basic weighted average common shares outstanding 131 131 Dilutive effect of stock options, restricted stock and restricted stock units — 2 Diluted weighted average common shares outstanding 131 133 Anti-dilutive stock options, restricted stock and restricted stock units excluded from the calculation of EPS 3 — |
Schedule of Changes in Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive loss are as follows (in millions): Foreign Currency Translation Pension and Other Postretirement Plan Unrecognized Net Gain Net Unrealized Loss On Derivatives Total Balance at December 31, 2018 $ (23 ) $ 2 $ (12 ) $ (33 ) Cumulative effect change in accounting for ASU 2018-02 — 1 — 1 Balance at January 1, 2019 (23 ) 3 (12 ) (32 ) Other comprehensive loss (5 ) — — (5 ) Balance at March 31, 2019 $ (28 ) $ 3 $ (12 ) $ (37 ) Balance at December 31, 2019 $ (30 ) $ 3 $ (8 ) $ (35 ) Other comprehensive loss (6 ) — (4 ) (10 ) Balance at March 31, 2020 $ (36 ) $ 3 $ (12 ) $ (45 ) |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Our remaining performance obligation primarily consists of the fixed consideration contained in our contracts. As of March 31, 2020 our total remaining performance obligation was $6.2 billion , of which we expect to recognize 8% in 2020 and 10% in 2021. |
Contract with Customer, Asset and Liability | The following table reflects the balance in our contract assets, which we classify as accounts receivable unbilled and present net in Receivables, and our contract liabilities, which we classify as deferred revenue and present in Accrued expenses and other current liabilities in our condensed consolidated balance sheet (in millions): March 31, December 31, Unbilled receivables $ 15 $ 16 Deferred revenue $ 23 $ 18 |
STOCK-BASED AWARD PLANS (Tables
STOCK-BASED AWARD PLANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Compensation Expense Related to Stock-Based Awards | Compensation expense related to our stock-based awards was as follows (in millions): Three Months Ended March 31, 2020 2019 Share based compensation expense $ 8 $ 8 |
Unrecognized Stock-based Compensation Expense | Unrecognized stock-based compensation expense and weighted-average years to be recognized are as follows (in millions, except for weighted average years): As of March 31, 2020 Unrecognized stock- based compensation Weighted-average years to be recognized Restricted stock units $ 20 1.8 Performance awards $ 10 2.2 Restricted stock awards $ — 1.0 |
SUPPLEMENTARY INFORMATION Suppl
SUPPLEMENTARY INFORMATION Supplementary Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Pass Through Costs | Pass through costs were as follows (in millions): Three Months Ended March 31, 2020 2019 Pass through costs $ 13 $ 13 |
ACCOUNTS RECEIVABLE SECURITIZ_2
ACCOUNTS RECEIVABLE SECURITIZATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Amounts recognized in connection with the RPA were as follows (in millions): Three Months Ended March 31, 2020 2019 Accounts receivable sold and derecognized $ 194 $ — Cash proceeds received (1) $ 194 $ — March 31, 2020 December 31, 2019 Pledged receivables (2) $ 117 $ 142 (1) Represents proceeds from collections reinvested in revolving-period transfers. This amount was included in Net cash provided by operating activities on our consolidated statement of cash flows. (2) Secures our obligations under the RPA and provides a guarantee for the prompt payment, not collection, of all payment obligations relating to the sold receivables. |
CREDIT LOSSES (Tables)
CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
Schedule of Changes in Allowance fr Credit Loss | Changes in the allowance for credit losses of our trade receivables for the three months ended March 31, 2020 were as follows: Balance as of December 31, 2019 $ 9 Write-offs charged against the allowance (3 ) Balance as of March 31, 2020 $ 6 |
Schedule of Shareholder Loans | The Company held the followings shareholder loans in connection with our equity method investments: March 31, 2020 December 31, 2019 Included in prepaid expenses and other assets $ 22 $ 22 Included in other assets - long term 25 15 $ 47 $ 37 |
FINANCIAL INSTRUMENTS Financial
FINANCIAL INSTRUMENTS Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets and Liabilities | The following table presents information about the fair value measurement of our assets and liabilities as of March 31, 2020 and December 31, 2019 (in millions): Financial Instruments Recorded at Fair Value on a Recurring Basis: Fair Value Measurement Level March 31, 2020 December 31, 2019 Assets: Investments — mutual and bond funds (1) 1 $ 1 $ 2 Derivative asset — energy hedges (2) 2 20 12 Total assets $ 21 $ 14 Liabilities: Derivative liability — interest rate swaps (3) 2 10 2 Total liabilities $ 10 $ 2 (1) Included in Other assets in the condensed consolidated balance sheets. (2) The short-term balance was included in Prepaid expenses and other current assets and the long-term balance was included in Other assets in the consolidated balance sheets. (3) The short-term balance was included in Accrued expenses and other current liabilities and the long-term balance was included in Other liabilities in the condensed consolidated balance sheets. The following financial instruments are recorded at their carrying amount (in millions): As of March 31, 2020 As of December 31, 2019 Financial Instruments Recorded at Carrying Amount: Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Liabilities: Long-term debt $ 2,425 $ 2,275 $ 2,383 $ 2,459 Project debt $ 132 $ 136 $ 133 $ 138 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Energy Generation Amounts | The amount of energy generation which we have hedged on a forward basis under agreements with various financial institutions as of March 31, 2020 is indicated in the following table (in millions): Calendar Year Hedged MWh 2020 2.5 2021 1.8 2022 0.1 Total 4.4 |
CONSOLIDATED DEBT (Tables)
CONSOLIDATED DEBT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Consolidated Debt | Consolidated debt is as follows (in millions): Average Rate (1) March 31, 2020 December 31, 2019 LONG-TERM DEBT: Revolving credit facility 3.49% $ 218 $ 183 Term loan, net 3.68% 382 384 Credit Facilities subtotal 600 567 Senior Notes, net of deferred financing costs 1,186 1,186 Tax-Exempt Bonds, net of deferred financing costs 539 539 China Venture Loan 9 — Equipment financing arrangements 83 85 Finance Leases (2) 8 6 Total long-term debt 2,425 2,383 Less: Current portion (18 ) (17 ) Noncurrent long-term debt $ 2,407 $ 2,366 PROJECT DEBT: Total project debt, net of deferred financing costs and unamortized debt premium $ 132 $ 133 Less: Current portion (9 ) (8 ) Noncurrent project debt $ 123 $ 125 TOTAL CONSOLIDATED DEBT $ 2,557 $ 2,516 Less: Current debt (27 ) (25 ) TOTAL NONCURRENT CONSOLIDATED DEBT $ 2,530 $ 2,491 (1) As of March 31, 2020 and December 31, 2019 , we entered into interest rate swap agreements to swap the LIBOR portion of our floating interest rate to a fixed rate for our variable rate debt under the Credit Facilities. See Note 12. Derivative Instruments |
Revolving Credit Facility | As of March 31, 2020 , we had unutilized capacity under the Revolving Credit Facility as follows (in millions): Total Facility Commitment Expiring Direct Borrowings Outstanding Letters of Credit Unutilized Capacity Revolving Credit Facility $ 900 2023 $ 218 $ 257 $ 425 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease Expense and Supplemental Cash Flow Information | Supplemental cash flow and other information related to leases was as follows (in millions): Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ (2 ) $ (2 ) Financing cash flows related to finance leases $ (2 ) $ (1 ) Weighted average remaining lease term (in years): Operating leases 11.6 12.9 Finance leases 31.8 33.7 Weighted average discount rate: Operating leases 4.63 % 4.66 % Finance leases 5.06 % 5.05 % The components of lease expense were as follows (in millions): Three Months Ended March 31, 2020 2019 Finance lease: Amortization of assets, included in Depreciation and amortization expense $ 2 $ 2 Interest on lease liabilities, included in Interest expense 1 — Operating lease: Amortization of assets, included in Total operating expense 2 2 Interest on lease liabilities, included in Total operating expense 1 1 Total net lease cost $ 6 $ 5 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): March 31, 2020 December 31, 2019 Operating leases: Operating lease ROU assets, included in Other assets $ 46 $ 46 Current operating lease liabilities, included in Accrued expenses and other current liabilities $ 6 $ 6 Noncurrent operating lease liabilities, included in Other liabilities 46 46 Total operating lease liabilities $ 52 $ 52 Finance leases: Property and equipment, at cost $ 170 $ 168 Accumulated amortization (27 ) (25 ) Property and equipment, net $ 143 $ 143 Current obligations of finance leases, included in Current portion of long-term debt $ 7 $ 6 Finance leases, net of current obligations, included in Long-term debt 83 84 Total finance lease liabilities $ 90 $ 90 |
Maturity of Lease Liabilities, Finance | Maturities of lease liabilities were as follows (in millions): March 31, 2020 Operating Leases Finance Leases Remainder of 2020 $ 6 $ 6 2021 9 12 2022 7 12 2023 7 12 2024 6 11 2025 and thereafter 33 105 Total lease payments 68 158 Less: Amounts representing interest (16 ) (68 ) Total lease obligations $ 52 $ 90 |
Maturity of Lease Liabilities, Operating | Maturities of lease liabilities were as follows (in millions): March 31, 2020 Operating Leases Finance Leases Remainder of 2020 $ 6 $ 6 2021 9 12 2022 7 12 2023 7 12 2024 6 11 2025 and thereafter 33 105 Total lease payments 68 158 Less: Amounts representing interest (16 ) (68 ) Total lease obligations $ 52 $ 90 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | Other commitments as of March 31, 2020 were as follows (in millions): Letters of credit issued under the Revolving Credit Facility $ 257 Letters of credit - other 38 Surety bonds 131 Total other commitments — net $ 426 |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Details) T in Millions, MW in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)MWTFacility | Dec. 31, 2019USD ($) | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Solid waste processed (in tons) | T | 21 | |
Number Of Energy From Waste Facilities | Facility | 41 | |
Annual Output | MW | 10 | |
Goodwill | $ 302 | $ 321 |
Right of use asset | 46 | 46 |
Total operating lease liabilities | 52 | 52 |
Goodwill, Impairment Loss | 16 | |
Goodwill impairment tax benefit | $ 3 | |
CES | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Goodwill | $ 46 | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 5.00% | |
Discount Rate | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Goodwill, measurement input | 12.00% | |
Long Term Terminal Growth Rate | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Goodwill, measurement input | 2.50% |
NEW BUSINESS AND ASSET MANAGM_2
NEW BUSINESS AND ASSET MANAGMENT (Details) ¥ in Millions, £ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||||||||||||
Jan. 31, 2020CNY (¥) | Jan. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2020GBP (£) | Mar. 31, 2019USD ($)MWhT | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Mar. 31, 2020CNY (¥) | Mar. 31, 2020USD ($) | Feb. 29, 2020USD ($)MWhT | Feb. 29, 2020GBP (£)MWhT | Dec. 31, 2019CNY (¥)T | Dec. 31, 2019USD ($)T | Mar. 31, 2019GBP (£)MWhT | |
Zhao County Investment | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, weight | T | 1,200 | 1,200 | ||||||||||||
Equity method investment, percent | 26.00% | 26.00% | 26.00% | 26.00% | ||||||||||
Proceeds from Issuance of Debt | ¥ 61 | $ 9 | ||||||||||||
Newhurst Energy Recovery Facility | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, weight | T | 350,000 | 350,000 | ||||||||||||
Equity method investment | $ 7 | £ 5 | ||||||||||||
Equity method investment, energy output | MWh | 42 | 42 | ||||||||||||
Equity method investment, waste processing capacity | 70.00% | 70.00% | ||||||||||||
Gain on sale of equity method investment | $ 9 | £ 7 | ||||||||||||
Newhurst Energy Recovery Facility | Joint Venture with Green Investment Group Limited | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, percent | 50.00% | 50.00% | ||||||||||||
Newhurst Energy Recovery Facility | Biffa plc | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, percent | 50.00% | 50.00% | ||||||||||||
Newhurst Energy Recovery Facility | Green Investment Group Limited | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, right to invest percent | 25.00% | 25.00% | 25.00% | 25.00% | ||||||||||
Rookery South Energy Recovery Facility | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, weight | T | 1,600 | 1,600 | ||||||||||||
Equity method investment | $ 44 | £ 34 | ||||||||||||
Equity method investment, energy output | MWh | 60 | 60 | ||||||||||||
Gain on sale of equity method investment | $ 57 | |||||||||||||
Rookery South Energy Recovery Facility | Veolia ES Limited | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, percent | 20.00% | 20.00% | ||||||||||||
Equity method investment, waste processing capacity | 70.00% | 70.00% | ||||||||||||
Rookery South Energy Recovery Facility | Green Investment Group Limited | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment, percent | 80.00% | 80.00% | ||||||||||||
Equity method investment, right to invest percent | 40.00% | 40.00% | 40.00% | 40.00% | ||||||||||
Covanta Green | Green Investment Group Limited | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment | $ 4 | |||||||||||||
Equity method investment, right to invest percent | 50.00% | 50.00% | 50.00% | 50.00% | ||||||||||
Other Assets | Zhao County Investment | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment | ¥ 35 | 5 | ¥ 35 | $ 5 | ||||||||||
Other Assets | Newhurst Energy Recovery Facility | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment | 6 | |||||||||||||
Other Assets | Covanta Green | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment | 4 | $ 9 | ||||||||||||
Pittsfield And Springfield EfW | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Loss on investment disposal | $ (9) | |||||||||||||
Affiliated Entity [Member] | Rookery South Energy Recovery Facility | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Accounts Receivable, Related Parties, Current | $ 18 | |||||||||||||
Forecast | Zhao County Investment | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity method investment | ¥ 61 | $ 9 | ||||||||||||
Equity method investment, percent | 49.00% | 49.00% |
EARNINGS PER SHARE ("EPS") AN_3
EARNINGS PER SHARE ("EPS") AND EQUITY Narrative (Details) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Earnings Per Share [Abstract] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
EARNINGS PER SHARE ("EPS") AN_4
EARNINGS PER SHARE ("EPS") AND EQUITY Schedule of Basic and Diluted Earnings per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (45) | $ (37) | |||
Accumulated other comprehensive loss | $ (45) | $ (35) | $ (32) | $ (33) | |
Basic | 131 | 131 | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 2 | |||
Diluted | 131 | 133 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 | 0 | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | $ (10) | $ (5) |
EARNINGS PER SHARE ("EPS") AN_5
EARNINGS PER SHARE ("EPS") AND EQUITY Schedule of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss | $ 45 | $ 35 | $ 32 | $ 33 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | (10) | $ (5) | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (4) | 0 | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (45) | (37) | |||
Income Tax Expense (Benefit) | (5) | 2 | |||
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss | 30 | 23 | 23 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | (6) | (5) | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (36) | (28) | |||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss | 3 | (3) | (2) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (3) | (3) | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss | $ 8 | 12 | $ 12 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | (4) | 0 | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (12) | $ (12) | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss | (1) | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss | 0 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss | (1) | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive loss | $ 0 |
REVENUES (Details)
REVENUES (Details) $ in Billions | Mar. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 6.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 8.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 10.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
REVENUES Contract Balances (Det
REVENUES Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, before Allowance for Credit Loss | $ 15 | $ 16 |
Contract with Customer, Liability | 23 | $ 18 |
Contract with Customer, Liability, Revenue Recognized | $ 6 |
STOCK-BASED AWARD PLANS Narrati
STOCK-BASED AWARD PLANS Narrative (Details) | 3 Months Ended |
Mar. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Repurchased In Period | 435,029 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 629,094 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,670,369 |
STOCK-BASED AWARD PLANS Schedul
STOCK-BASED AWARD PLANS Schedule of Compensation Expense Related to Stock-Based Awards (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Noncash Expense | $ 8 | $ 8 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,670,369 | |
Director | Quarterly Compensation [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 11,013 |
STOCK-BASED AWARD PLANS Unrecog
STOCK-BASED AWARD PLANS Unrecognized Stock-based Compensation Expense (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 0 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 20 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 10 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 2 months 12 days |
SUPPLEMENTARY INFORMATION Sched
SUPPLEMENTARY INFORMATION Schedule of Pass Through Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Operating Expenses [Line Items] | ||
Plant operating expense | $ 361 | $ 359 |
Pass through costs [Member] | ||
Other Operating Expenses [Line Items] | ||
Plant operating expense | $ 13 | $ 13 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 13.00% | 31.00% |
ACCOUNTS RECEIVABLE SECURITIZ_3
ACCOUNTS RECEIVABLE SECURITIZATION (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Receivables [Abstract] | |||
Maximum amount of receivables repurchasable | $ 100 | ||
Weighted average discount rate on receivables repurchased | 2.22% | ||
Accounts receivable sold and derecognized | $ 194 | $ 0 | |
Cash proceeds received | 194 | $ 0 | |
Pledged receivables | 117 | $ 142 | |
Receivables repurchased | $ 100 |
CREDIT LOSSES - Changes in Allo
CREDIT LOSSES - Changes in Allowance for Credit Loss (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 9 |
Write-offs charged against the allowance | (3) |
Ending balance | $ 6 |
CREDIT LOSSES - Shareholder Loa
CREDIT LOSSES - Shareholder Loans (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Credit Loss [Abstract] | ||
Included in prepaid expenses and other assets | $ 22 | $ 22 |
Included in other assets - long term | 25 | 15 |
Total | $ 47 | $ 37 |
Fair Value Measurements of Asse
Fair Value Measurements of Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Long-term Debt | $ 2,425 | $ 2,383 |
Project Debt | 132 | 133 |
Estimate of Fair Value Measurement [Member] | ||
Assets, Fair Value Disclosure | 21 | 14 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 10 | 2 |
Long-term Debt | 2,275 | 2,459 |
Project Debt | 136 | 138 |
Reported Value Measurement [Member] | ||
Long-term Debt | 2,425 | 2,383 |
Project Debt | 132 | 133 |
Fair Value, Inputs, Level 1 [Member] | Mutual And Bond Funds [Member] | Estimate of Fair Value Measurement [Member] | ||
Investments, Fair Value Disclosure | 1 | 2 |
Energy Hedges [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Derivative Asset | 20 | |
Energy Hedges [Member] | Fair Value, Inputs, Level 2 [Member] | Energy Hedges [Member] | Estimate of Fair Value Measurement [Member] | ||
Derivative Asset | 12 | |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative Liability | $ 10 | $ 2 |
DERIVATIVE INSTRUMENTS Narrativ
DERIVATIVE INSTRUMENTS Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Interest Rate Derivatives, at Fair Value, Net | $ 10 | ||
Energy Hedges [Member] | |||
Derivative [Line Items] | |||
Proceeds from Hedge, Investing Activities | 18 | $ 10 | |
Payments for (Proceeds from) Hedge, Investing Activities | 0 | $ (1) | |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 200 | ||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 10 | $ 2 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Energy Hedges [Member] | |||
Derivative [Line Items] | |||
Derivative Asset | $ 20 |
DERIVATIVE INSTRUMENTS Schedule
DERIVATIVE INSTRUMENTS Schedule of Energy Generation Amounts (Details) MW in Millions | Mar. 31, 2020MW |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 4.4 |
Fiscal Year 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 2.5 |
Fiscal Year 2020 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 1.8 |
Fiscal Year 2021 [Member] [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 0.1 |
Schedule of Consolidated Debt (
Schedule of Consolidated Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 600 | $ 567 |
Long-term Debt | 2,425 | 2,383 |
Total finance lease liabilities | 90 | 90 |
Total Long Term Debt, Senior Notes | 1,186 | 1,186 |
Total Long Term Debt, Tax Exempt Bonds | 539 | 539 |
Current portion of long-term debt | (18) | (17) |
Long-term debt, Noncurrent | 2,407 | 2,366 |
Project Debt | 132 | 133 |
Current portion of project debt | (9) | (8) |
Project Debt Noncurrent | 123 | 125 |
Debt, Total | 2,557 | 2,516 |
Debt, Current | (27) | (25) |
Debt, Noncurrent | $ 2,530 | 2,491 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 3.49% | |
Long-term line of credit | $ 218 | 183 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 3.68% | |
Long-term Debt | $ 382 | 384 |
China Venture Loan | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 9 | 0 |
Equipment Financing | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 83 | 85 |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Total finance lease liabilities | $ 8 | $ 6 |
CONSOLIDATED DEBT Revolving Cre
CONSOLIDATED DEBT Revolving Credit Facility (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||
Long-term Debt | $ 2,425 | $ 2,383 |
Long-term line of credit | 600 | 567 |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Total facility commitment | 900 | |
Long-term line of credit | 218 | 183 |
Line of credit facility, remaining borrowing capacity | 425 | |
Term Loan | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt | 382 | $ 384 |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | 38 | |
Letter of Credit [Member] | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | $ 257 |
CONSOLIDATED DEBT Narrative (De
CONSOLIDATED DEBT Narrative (Details) ¥ in Millions, $ in Millions | 1 Months Ended | |||
Jan. 31, 2020CNY (¥) | Jan. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||
Total Long Term Debt, Tax Exempt Bonds | $ 539 | $ 539 | ||
Zhao County Investment | ||||
Debt Instrument [Line Items] | ||||
Proceeds from Issuance of Debt | ¥ 61 | $ 9 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease ROU assets, included in Other assets | $ 46 | $ 46 |
Current operating lease liabilities, included in Accrued expenses and other current liabilities | 6 | 6 |
Noncurrent operating lease liabilities, included in Other liabilities | 46 | 46 |
Total operating lease liabilities | 52 | 52 |
Property and equipment, at cost | 170 | 168 |
Accumulated amortization | (27) | (25) |
Property and equipment, net | 143 | 143 |
Current obligations of finance leases, included in Current portion of long-term debt | 7 | 6 |
Finance leases, net of current obligations, included in Long-term debt | 83 | 84 |
Total finance lease liabilities | $ 90 | $ 90 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Property and equipment, at cost | $ 170 | $ 168 | |
Finance Lease, Right-Of-Use Asset, Accumulated Depreciation | 27 | $ 25 | |
Operating cash flows related to operating leases | (2) | $ (2) | |
Financing cash flows related to finance leases | $ (2) | $ (1) | |
Weighted average remaining lease term (in years): operating | 11 years 7 months 6 days | 12 years 10 months 24 days | |
Weighted average remaining lease term (in years): finance | 31 years 9 months 18 days | 33 years 8 months 12 days | |
Current obligations of finance leases, included in Current portion of long-term debt | $ 7 | $ 6 | |
Finance leases, net of current obligations, included in Long-term debt | $ 83 | $ 84 | |
Weighted average discount rate: operating | 4.63% | 4.66% | |
Weighted average discount rate: finance | 5.06% | 5.05% | |
Operating Lease, Liability, Noncurrent | $ 46 | $ 46 | |
Operating Lease, Liability | $ 52 | $ 52 |
LEASES - Lease Maturity (Detail
LEASES - Lease Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 6 | |
Finance Lease, Liability, to be Paid, Year One | 6 | |
Operating Leases | ||
2020 | 9 | |
2021 | 7 | |
2022 | 7 | |
2023 | 6 | |
2025 and thereafter | 33 | |
Total lease payments | 68 | |
Less: Amounts representing interest | (16) | |
Total lease obligations | 52 | $ 52 |
Finance Leases | ||
2020 | 12 | |
2021 | 12 | |
2022 | 12 | |
2023 | 11 | |
2025 and thereafter | 105 | |
Total lease payments | 158 | |
Less: Amounts representing interest | (68) | |
Total lease obligations | $ 90 | $ 90 |
LEASES Lease Expense (Details)
LEASES Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Amortization of assets, included in Depreciation and amortization expense | $ 2 | $ 2 |
Interest on lease liabilities, included in Interest expense | 1 | 0 |
Amortization of assets, included in Total operating expense | 2 | 2 |
Interest on lease liabilities, included in Total operating expense | 1 | 1 |
Total net lease cost | $ 6 | $ 5 |
COMMITMENTS AND CONTINGENCIES N
COMMITMENTS AND CONTINGENCIES Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual | $ 3 | $ 3 |
Other Commitment | 426 | |
Letter of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | 38 | |
Surety Bonds [Member] | ||
Loss Contingencies [Line Items] | ||
Other Commitment | $ 131 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event | Apr. 14, 2020$ / shares |
Subsequent Event [Line Items] | |
Dividend payout (in dollars per share) | $ 0.32 |
Chief Executive Officer | |
Subsequent Event [Line Items] | |
Wage and fee reduction, percent | 50.00% |
Executive Leadership | |
Subsequent Event [Line Items] | |
Wage and fee reduction, percent | 25.00% |
Corporate Support Employees | |
Subsequent Event [Line Items] | |
Wage and fee reduction, percent | 20.00% |
Director | |
Subsequent Event [Line Items] | |
Wage and fee reduction, percent | 60.00% |
Uncategorized Items - cva-03312
Label | Element | Value |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ 0 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings, Unappropriated [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | (1,000,000) |
Cumulative Effect, Period of Adoption, Adjustment [Member] | AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | $ 1,000,000 |