Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 22, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-37556 | |
Entity Registrant Name | STERICYCLE INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3640402 | |
Entity Address, Address Line One | 2355 Waukegan Road | |
Entity Address, City or Town | Bannockburn | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60015 | |
City Area Code | 847 | |
Local Phone Number | 367-5910 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | SRCL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 92,785,315 | |
Entity Central Index Key | 0000861878 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenues | $ 664.9 | $ 684.3 |
Cost of revenues | 410 | 423.3 |
Gross profit | 254.9 | 261 |
Selling, general and administrative expenses | 216 | 216 |
Divestiture losses, net (Note 4) | 0 | 5 |
Income from operations | 38.9 | 40 |
Interest expense, net | (18.4) | (20.4) |
Other income, net | 0 | 0.2 |
Income before income taxes | 20.5 | 19.8 |
Income tax expense | (7.4) | (8.5) |
Net income | 13.1 | 11.3 |
Net income attributable to noncontrolling interests | 0 | (0.1) |
Net income attributable to Stericycle, Inc. common shareholders | $ 13.1 | $ 11.2 |
Income per common share attributable to Stericycle, Inc. common shareholders: | ||
Basic (in dollars per share) | $ 0.14 | $ 0.12 |
Diluted (in dollars per share) | $ 0.14 | $ 0.12 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 92.6 | 92.3 |
Diluted (in shares) | 93 | 92.7 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 13.1 | $ 11.3 |
Other comprehensive (loss) income: | ||
Currency translation adjustments | (11.5) | 7.9 |
Total other comprehensive (loss) income | (11.5) | 7.9 |
Comprehensive income | 1.6 | 19.2 |
Less: comprehensive income (loss) attributable to noncontrolling interests | 0 | (2.2) |
Comprehensive income attributable to Stericycle, Inc. common shareholders | $ 1.6 | $ 21.4 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 31 | $ 35.3 |
Accounts receivable, less allowance for doubtful accounts of $47.2 in 2024 and $44.7 in 2023 | 616.4 | 553.9 |
Prepaid expenses | 33.6 | 31.6 |
Other current assets | 47.8 | 50.7 |
Total Current Assets | 728.8 | 671.5 |
Property, plant and equipment, less accumulated depreciation of $680.2 in 2024 and $675.4 in 2023 | 722.6 | 708.3 |
Operating lease right-of-use assets | 497.2 | 464.3 |
Goodwill | 2,758 | 2,755.6 |
Intangible assets, less accumulated amortization of $948.8 in 2024 and $925.8 in 2023 | 661.3 | 686.5 |
Other assets | 67.8 | 66.4 |
Total Assets | 5,435.7 | 5,352.6 |
Current Liabilities: | ||
Current portion of long-term debt | 17.3 | 19.6 |
Bank overdrafts | 0 | 1 |
Accounts payable | 198.3 | 212.1 |
Accrued liabilities | 210.9 | 259.5 |
Operating lease liabilities | 109.1 | 105.4 |
Deferred revenues | 70.1 | 72.6 |
Other current liabilities | 49.2 | 47.8 |
Total Current Liabilities | 654.9 | 718 |
Long-term debt, net | 1,398.6 | 1,277.8 |
Long-term operating lease liabilities | 407.8 | 378.9 |
Deferred income taxes | 417 | 420.5 |
Other liabilities | 34.3 | 34.5 |
Total Liabilities | 2,912.6 | 2,829.7 |
Commitments and contingencies (Note 9 - Commitments and Contingencies) | ||
EQUITY | ||
Common stock (par value $0.01 per share, 120.0 shares authorized, 92.8 and 92.6 issued and outstanding in 2024 and 2023, respectively) | 0.9 | 0.9 |
Additional paid-in capital | 1,315.3 | 1,316.7 |
Retained earnings | 1,402.5 | 1,389.4 |
Accumulated other comprehensive loss | (196) | (184.5) |
Total Stericycle, Inc.’s Equity | 2,522.7 | 2,522.5 |
Noncontrolling interests | 0.4 | 0.4 |
Total Equity | 2,523.1 | 2,522.9 |
Total Liabilities and Equity | $ 5,435.7 | $ 5,352.6 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 47.2 | $ 44.7 |
Property, plant and equipment, accumulated depreciation | 680.2 | 675.4 |
Intangible assets, accumulated amortization | $ 948.8 | $ 925.8 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 120 | 120 |
Common stock, issued (in shares) | 92.8 | 92.6 |
Common stock, outstanding (in shares) | 92.8 | 92.6 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OPERATING ACTIVITIES: | ||
Net income | $ 13.1 | $ 11.3 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation | 25.7 | 26.6 |
Intangible amortization | 27.8 | 28.2 |
Stock-based compensation expense | 2.7 | 6.9 |
Deferred income taxes | (2.7) | 4.7 |
Divestiture losses, net | 0 | 5 |
Asset impairments, loss (gain) on disposal of property plant and equipment and other charges | 1 | (0.4) |
Other, net | 1.3 | 0.5 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (64.4) | (4.4) |
Prepaid expenses | (2.1) | (1.4) |
Accounts payable | (12.5) | (6.3) |
Accrued liabilities | (41.1) | (17.4) |
Deferred revenues | (2.4) | 0.7 |
Other assets and liabilities | (0.9) | (4.5) |
Net cash from operating activities | (54.5) | 49.5 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (43.1) | (36.4) |
(Payments) proceeds from (acquisition) divestiture of businesses, net | (14) | 0.9 |
Other, net | 0.3 | 1 |
Net cash from investing activities | (56.8) | (34.5) |
FINANCING ACTIVITIES: | ||
Repayments of long-term debt and other obligations | (5.7) | (7.8) |
Repayments of foreign bank debt | 0 | (0.1) |
Repayments of senior notes | (600) | 0 |
Proceeds from credit facility | 951 | 286.9 |
Repayments of credit facility | (228.1) | (283) |
Repayments of bank overdrafts, net | (0.9) | (0.5) |
Payments of finance lease obligations | (0.6) | (0.7) |
Proceeds from issuance of common stock, net of (payments of) taxes from withheld shares | (6.4) | (4.9) |
Payments to noncontrolling interest | 0 | (1.5) |
Net cash from financing activities | 109.3 | (11.6) |
Effect of exchange rate changes on cash and cash equivalents | (2.3) | 0.6 |
Net change in cash and cash equivalents | (4.3) | 4 |
Cash and cash equivalents at beginning of period | 35.3 | 56 |
Cash and cash equivalents at end of period | 31 | 60 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid, net of capitalized interest | 35.1 | 32.8 |
Income taxes paid, net | 4.9 | 0.4 |
Capital expenditures in Accounts payable | $ 22.7 | $ 18.8 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Beginning Balance (in shares) at Dec. 31, 2022 | 92.2 | |||||
Beginning Balance at Dec. 31, 2022 | $ 2,424.5 | $ 0.9 | $ 1,285.4 | $ 1,410.8 | $ (276.9) | $ 4.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 11.3 | 11.2 | 0.1 | |||
Currency translation adjustments | 7.9 | 10.2 | (2.3) | |||
Issuance of common stock for incentive stock programs, net of (payments of) taxes from withheld shares (in shares) | 0.2 | |||||
Issuance of common stock for incentive stock programs, net of (payments of) taxes from withheld shares | (3.1) | (3.1) | ||||
Stock-based compensation expense | 6.9 | 6.9 | ||||
Changes in noncontrolling interest | (1.5) | (1.5) | ||||
Ending Balance (in shares) at Mar. 31, 2023 | 92.4 | |||||
Ending Balance at Mar. 31, 2023 | 2,446 | $ 0.9 | 1,289.2 | 1,422 | (266.7) | 0.6 |
Beginning Balance (in shares) at Dec. 31, 2023 | 92.6 | |||||
Beginning Balance at Dec. 31, 2023 | 2,522.9 | $ 0.9 | 1,316.7 | 1,389.4 | (184.5) | 0.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 13.1 | 13.1 | ||||
Currency translation adjustments | (11.5) | (11.5) | ||||
Issuance of common stock for incentive stock programs, net of (payments of) taxes from withheld shares (in shares) | 0.2 | |||||
Issuance of common stock for incentive stock programs, net of (payments of) taxes from withheld shares | (4.1) | (4.1) | ||||
Stock-based compensation expense | 2.7 | 2.7 | ||||
Ending Balance (in shares) at Mar. 31, 2024 | 92.8 | |||||
Ending Balance at Mar. 31, 2024 | $ 2,523.1 | $ 0.9 | $ 1,315.3 | $ 1,402.5 | $ (196) | $ 0.4 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Summary of Significant Accounting Policies Basis of Presentation: The accompanying unaudited condensed consolidated financial statements include the accounts of Stericycle, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company's condensed consolidated financial statements were prepared in accordance with U.S. GAAP and include the assets, liabilities, revenues, and expenses of all wholly-owned subsidiaries and majority-owned subsidiaries over which the Company exercises control. Outside stockholders' interests in subsidiaries are shown on the condensed consolidated financial statements as “Noncontrolling interests”. The accompanying unaudited condensed consolidated financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and 2023, have been prepared pursuant to the rules and regulations of the SEC for interim reporting and, therefore, do not include all information and footnote disclosures normally included in audited financial statements prepared in conformity with U.S. GAAP. In the opinion of management, however, all adjustments, consisting of normal recurring adjustments necessary to present fairly the results of operations, financial position and cash flows have been made. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the 2023 Form 10-K. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year or any other period. Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Some areas where the Company makes estimates include allowance for doubtful accounts, credit memo reserves, contingent liabilities, asset retirement obligations, stock compensation expense, income tax assets and liabilities, accrued employee health and welfare benefits, accrued auto and workers’ compensation self-insured claims, leases, acquisition related long-lived assets, goodwill and held for sale impairment valuations. Such estimates are based on historical trends and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. Accounting Standards Issued But Not Yet Adopted Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact on disclosures in our Notes to Condensed Consolidated Financial Statements. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires greater disaggregation of information in the rate reconciliation and the disclosure of income taxes paid by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact on disclosures in our Notes to Condensed Consolidated Financial Statements. |
REVENUES FROM CONTRACTS WITH CU
REVENUES FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES FROM CONTRACTS WITH CUSTOMERS | REVENUES FROM CONTRACTS WITH CUSTOMERS The Company provides RWCS, which provide collection and processing of regulated and specialized waste, including medical, pharmaceutical and hazardous waste, for disposal and compliance programs and SID services, which provide for the collection of personal and confidential information for secure destruction and recycling of shredded paper. The Company’s customers typically enter into a contract for the provision of services on a regular and scheduled basis, e.g., weekly, monthly or on an as needed basis over the contract term, e.g., one-time service. Under the contract terms, the Company receives fees based on a monthly, quarterly or annual rate and/or fees based on contractual rates depending upon measures including the volume, weight, and type of waste. Amounts are invoiced based on the terms of the underlying contract either on a regular basis, e.g., monthly or quarterly, or as services are performed and are generally due within a short period of time after invoicing based upon normal terms and conditions for our business type and the geography of the services performed. Disaggregation of Revenue The following table presents revenues disaggregated by service and reportable segments: In millions Three Months Ended March 31, 2024 2023 Revenue by Service Regulated Waste and Compliance Services $ 447.8 $ 451.3 Secure Information Destruction Services 217.1 233.0 Total Revenues $ 664.9 $ 684.3 North America Regulated Waste and Compliance Services $ 376.5 $ 368.7 Secure Information Destruction Services 192.7 204.7 Total North America Segment $ 569.2 $ 573.4 International Regulated Waste and Compliance Services $ 71.3 $ 82.6 Secure Information Destruction Services 24.4 28.3 Total International Segment $ 95.7 $ 110.9 Deferred Revenues Deferred revenues are recognized when cash payments are received or when the Company bills for services in advance of performance. Deferred revenues as of March 31, 2024 and December 31, 2023, were $70.1 million and $72.6 million, respectively. Beginning in the third quarter of 2023, the Company advanced billings for certain Regulated Waste and Compliance services. Deferred revenues are classified within current liabilities since the revenues are earned within 12 months and there are no significant financing components. Contract Acquisition Costs The Company’s incremental direct costs of obtaining a contract, which consist primarily of sales incentives, are deferred and amortized to SG&A over a weighted average estimated period of benefit of 6.5 years. During the three months ended March 31, 2024 and 2023, the Company amortized $4.4 million and $4.0 million, respectively, of deferred sales incentives to SG&A. Total contract acquisition costs, net of accumulated amortization, were classified as follows: In millions March 31, 2024 December 31, 2023 Other current assets $ 16.4 $ 16.1 Other assets 46.9 46.1 Total contract acquisition costs $ 63.3 $ 62.2 Allowance for Doubtful Accounts The Company estimates its allowance for doubtful accounts based on past collection history and specific risks identified among uncollected amounts, as well as management’s expectation of future economic conditions. If current or expected future economic trends, events, or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and the allowance is adjusted accordingly. Past-due receivable balances are written off when the Company’s collection efforts have been exhausted. The changes in allowance for doubtful accounts were reported as follows: In millions Three Months Ended March 31, 2024 2023 Beginning Balance $ 44.7 $ 53.3 Bad debt expense, net of recoveries 5.9 2.2 Write-offs (3.9) (5.8) Other changes (1) 0.5 0.5 Ending Balance $ 47.2 $ 50.2 (1) Amounts consist primarily of foreign currency translation adjustments. |
ACQUISITION
ACQUISITION | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION | ACQUISITION The Company acquired a southeastern U.S. regulated waste business on January 31, 2024, which is considered to be complementary to existing operations and aligns with the Company’s strategic capital allocation strategy. There were no acquisitions in 2023. The results of operations of this acquired business has been included in the Condensed Consolidated Statements of Income from the date of the acquisition. Pro forma results of operations for this acquisition are not presented because the pro forma effects were not material to the Company’s consolidated results. The following table summarizes the acquisition date fair value of consideration transferred for the acquisition completed during the three months ended March 31: In millions 2024 Cash $ 14.0 Promissory Notes 1.8 Total purchase price $ 15.8 The total purchase consideration has been preliminarily allocated to the assets and liabilities acquired based upon their estimated fair values as of the acquisition date, with the excess of the purchase price over the net assets acquired recorded as goodwill based on the strategic benefits to be achieved and is deductible for tax purposes. We are in the process of valuing all of the assets acquired in the acquisition and until we have completed our valuation process, there may be adjustments to our estimates of fair value and resulting preliminary purchase price allocations, specifically those related to intangibles. The following table summarizes the preliminary purchase price allocation for the acquisition completed during the three months ended March 31: In millions 2024 Fixed assets $ 1.2 Intangibles (Customer Lists) 6.1 Goodwill 8.2 Other assets and liabilities, net 0.3 Total purchase price $ 15.8 The customer lists intangible has an estimated useful life of 15 years. |
RESTRUCTURING AND DIVESTITURES
RESTRUCTURING AND DIVESTITURES | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
RESTRUCTURING AND DIVESTITURES | RESTRUCTURING AND DIVESTITURES Restructuring – Operational Optimization: In February 2024, the Company recognized Operational Optimization severance charges of approximately $5.6 million related to a workforce reduction, within our North America and International segments. Divestiture On January 19, 2023, the Company exited its International container manufacturing operations, for cash proceeds of approximately $2.2 million. The transaction resulted in a first quarter of 2023 divestiture pre-tax loss of $5.0 million. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The Company’s long-term debt consisted of the following: In millions March 31, 2024 December 31, 2023 $1.2 billion Credit Facility, due in 2026 $ 753.6 $ 31.0 $125 million Term Loan, due in 2026 125.0 125.0 $600 million Senior Notes, due in 2024 (redeemed in March 2024) — 600.0 $500 million Senior Notes, due in 2029 500.0 500.0 Promissory notes and deferred consideration weighted average maturity of 2.5 years at 2024 and 2.6 years at 2023 29.0 32.9 Obligations under finance leases 14.8 16.3 Total debt 1,422.4 1,305.2 Less: current portion of total debt 17.3 19.6 Less: unamortized debt issuance costs 6.5 7.8 Long-term portion of total debt $ 1,398.6 $ 1,277.8 The estimated fair value of our debt approximate d $1.4 billion and $1.3 billion as of March 31, 2024 and December 31, 2023, respectively. These fair value amounts were estimated using an income approach by applying market interest rates for comparable instruments and developed based on inputs classified as Level 2 in accordance with the fair value measurements accounting guidance. The weighted average interest rates on long-term debt, excluding finance leases, were as follows: Three Months Ended March 31, 2024 Year Ended December 31, 2023 $1.2 billion Credit Facility, due in 2026 (variable rate) 6.93 % 6.85 % $125 million Term Loan, due in 2026 (variable rate) 6.63 % 6.66 % $600 million Senior Notes, due in 2024 (fixed rate) (redeemed in March 2024) 5.38 % 5.38 % $500 million Senior Notes, due in 2029 (fixed rate) 3.88 % 3.88 % Promissory notes and deferred consideration (fixed rate) 3.43 % 3.54 % The Credit Agreement contains, among other covenants, a financial covenant requiring maintenance of a maximum Credit Agreement Defined Debt Leverage Ratio of 4.00 to 1.00 which includes, among other provisions, $50.0 million of cash add-backs to EBITDA with respect to any four fiscal quarter period ending on or before December 31, 2023. As of March 31, 2024, the Company was in compliance with its financial covenants. The Credit Agreement Defined Debt Leverage Ratio was 3.51 to 1.00, which was below the allowed maximum ratio of 4.00 to 1.00 as set forth in the amended Credit Agreement. Expiration of the $50.0 million of such cash add-backs to EBITDA contributed approximately 30 points of increase to the Credit Agreement Defined Debt Leverage ratio as of March 31, 2024 compared to December 31, 2023. On February 1, 2024, the Company issued a redemption notice to 2019 Senior Notes holders for redemption of all of the $600 million aggregate principal amount of the outstanding 2019 Senior Notes, and on March 14, 2024 completed the redemption with borrowings from the Revolving Credit facility. The refinancing of the 2019 Senior Notes using the Revolving Credit Facility converted the long-term debt from fixed rate to variable rate as of the redemption date. On June 15, 2023, we entered into a Second Amendment to the Credit Agreement. Among other provisions, the Second Amendment modifies the pricing reference from the Eurocurrency Rate Loans (LIBOR) to Term SOFR Loans as defined in the Credit Agreement and allows for higher capital leases capped at $200 million in the aggregate. Amounts committed to outstanding letters of credit and the unused portion of the Company's Senior Credit Facility were as follows: In millions March 31, 2024 December 31, 2023 Outstanding letters of credit under Credit Facility $ 55.2 $ 59.0 Unused portion of the Credit Facility 391.2 1,110.0 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe Company reported income tax expense of $7.4 million and $8.5 million for the three months ended March 31, 2024 and 2023, respectively. The effective tax rates for the three months ended March 31, 2024 and 2023 were 36.1% and 42.9%, respectively. The effective tax rate for the three months ended March 31, 2024 reflects equity-based compensation awards expiring without a tax benefit. The effective tax rate for the three months ended March 31, 2023 reflects (i) equity-based compensation awards expiring without a tax benefit and (ii) losses in jurisdictions that are not eligible for tax benefits on account of valuation allowances |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic earnings per share is computed by dividing Net income by the number of weighted average common shares outstanding during the reporting period. Diluted earnings per share is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period, only in the periods in which such effect is dilutive. The following table shows the effect of stock-based awards on the weighted average number of shares outstanding used in calculating diluted earnings per share: In millions of shares Three Months Ended March 31, 2024 2023 Weighted average common shares outstanding - basic 92.6 92.3 Incremental shares outstanding related to stock-based awards 0.4 0.4 Weighted average common shares outstanding - diluted 93.0 92.7 Anti-dilutive stock-based awards excluded from the computation of diluted earnings per share using the treasury stock method include the following: In thousands of shares Three Months Ended March 31, 2024 2023 Option awards 477 815 RSU awards 102 1 PSUs are offered to key employees and are subject to achievement of specified performance conditions. Contingently issuable shares are excluded from the computation of diluted earnings per share based on current period results. The shares would not be issuable if the end of the quarter were the end of the contingency period. If such goals are not met, no compensation expense is recognized, and any previously recognized compensation expense is reversed. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company evaluates, oversees, and manages the financial performance of two operating and reportable segments – North America and International. The following tables show financial information for the Company's reportable segments (see Note 2 – Revenues from Contracts with Customers for segment revenues): In millions Three Months Ended March 31, 2024 2023 Adjusted Income from Operations North America $ 149.1 $ 160.3 International 12.4 10.3 Other Costs (71.0) (85.9) Total Adjusted Income from Operations $ 90.5 $ 84.7 The following table reconciles the Company's primary measure of segment profitability, Adjusted Income from Operations, to Income from operations: In millions Three Months Ended March 31, 2024 2023 Total Reportable Segment Adjusted Income from Operations $ 90.5 $ 84.7 Adjusting Items: ERP and System Modernization (4.4) (2.7) Intangible Amortization (27.8) (28.2) Operational Optimization (5.6) — Portfolio Optimization (1.6) (5.6) Litigation, Settlements and Regulatory Compliance (12.2) (8.2) Income from operations $ 38.9 $ 40.0 The Company is currently evaluating the impact of ASU 2023-07 on disclosures to our Condensed Consolidated Financial Statements, which is not expected to be material. See Note 1 – Basis of Presentation and Summary of Significant Accounting Policies for further information. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company operates in highly regulated industries and responds to regulatory inquiries or investigations from time to time that may be initiated for a variety of reasons. At any given time, the Company has matters at various stages of resolution with the applicable government authorities. The Company is also routinely involved in actual or threatened legal actions, including those involving alleged personal injuries and commercial, employment, environmental, tax, and other issues. The outcomes of these matters are not within the Company’s complete control and may not be known for prolonged periods of time. In some actions, claimants seek damages, as well as other relief, including injunctive relief, that could require significant expenditures or result in lost revenue. In accordance with applicable accounting standards, the Company establishes an accrued liability for loss contingencies related to legal and regulatory matters when the loss is both probable and reasonably estimable. If the reasonable estimate of a probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is not probable or a probable loss is not reasonably estimable, no liability is recorded. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. These accruals represent management’s best estimate of probable losses and, in such cases, there may be an exposure to loss in excess of the amounts accrued. Estimates of probable losses resulting from litigation and regulatory proceedings are difficult to predict. Legal and regulatory matters inherently involve significant uncertainties based on, among other factors, the jurisdiction and stage of the proceedings, developments in the applicable facts or law, and the unpredictability of the ultimate determination of the merits of any claim, any defenses the Company may assert against that claim, and the amount of any damages that may be awarded. The Company’s accrued liabilities for loss contingencies related to legal and regulatory matters may change in the future as a result of new developments, including, but not limited to, the occurrence of new legal matters, changes in the law or regulatory environment, adverse or favorable rulings, newly discovered facts relevant to the matter, or changes in the strategy for the matter. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. Government Investigations. As previously reported, the Company entered into a deferred prosecution agreement (“DPA”) with the DOJ in 2022 in connection with its resolution of investigations by the DOJ, SEC, and various authorities in Brazil relating to the Company’s compliance with the FCPA or other anti-corruption laws with respect to operations in Latin America. Under the settlements with the DOJ and with the SEC, the Company has engaged an independent compliance monitor for two years and will undertake compliance with self-reporting obligations for an additional year. If the Company remains in compliance with the DPA during the remainder of its three-year term, deferred charges against the Company will be dismissed with prejudice. The Company is cooperating with an investigation by the office of the United States Attorney for the Southern District of New York (“SDNY”) and the United States Environmental Protection Agency into the Company’s historical compliance with federal environmental statutes, including the Resource Conservation and Recovery Act, in connection with the collection, transportation and disposal of hazardous waste by the Company’s former Domestic Environmental Solutions business unit. The Company has made an accrual in respect of this matter consistent with its accrual policies described above, which is not material. Environmental, Regulatory and Indemnity Matters. The Company is subject to various federal, state and local laws and regulations. In the ordinary course of business, we are routinely involved in government enforcement proceedings, private lawsuits, and other matters alleging non-compliance by the Company with applicable law. The issues involved in these proceedings generally relate to alleged violations of existing permits or other requirements, or alleged liability due to our current operations, pre-existing conditions at the locations where we operate, and/or successor or predecessor liability associated with our portfolio optimization strategy. From time to time, the Company may be subject to fines or penalties in regulatory proceedings relating primarily to waste treatment, storage or disposal facilities. Enviri Indemnification. Effective April 6, 2020, the Company completed the divestiture of its Domestic Environmental Solutions business to Enviri Corporation. Pursuant to the Purchase Agreement, the Company may have liability under certain indemnification claims for matters relating to the Domestic Environmental Solutions business, including potentially with respect to the SDNY investigation described above, the DEA Investigation matter discussed below, and other matters. Consistent with its accrual policies described previously, the Company has made accruals on various of these matters, which are neither individually nor collectively material. Rancho Cordova, California, NOVs. On June 25 and 26, 2018, the California DTSC conducted a Compliance Enforcement Inspection of the Company’s former Domestic Environmental Solutions facility in Rancho Cordova, California. On February 14, 2020, DTSC filed an action in the Superior Court for the State of California, Sacramento County Division, alleging violations of California’s Hazardous Waste Control Law and the facility’s hazardous waste permit arising from the inspection. The Company has reached a settlement in principle with the DTSC, subject to final documentation, with respect to these claims and any potential claims stemming from the search warrant executed in conjunction with the DEA inspection of the Rancho Cordova facility described below. The Company has made an accrual in respect of the settlement consistent with its accrual policies described above, which is not material. Rancho Cordova, California, Permit Revocation. Separately, on August 15, 2019, the Company received from DTSC a written Intent to Deny Hazardous Waste Facility Permit Application for the Rancho Cordova facility. Following legal challenges, that DTSC action became final as of April 8, 2022, triggering an obligation to execute the closure plan set forth in the facility's permit. Consistent with its accrual policies described previously, the Company has made an accrual in the amount of its estimate of closure costs reasonably likely to be incurred and indemnified to Enviri under the Purchase Agreement, which is not material. DEA Investigation. On February 11, 2020, the Company received an administrative subpoena from the DEA, which executed a search warrant at the Company’s former Domestic Environmental Solutions facility at Rancho Cordova, California and an administrative inspection warrant at the Company’s former facility in Indianapolis, Indiana for materials related to the former Domestic Environmental Solutions business of collecting, transporting, and destroying controlled substances from retail customers (the “ESOL Retail Controlled Substances Business”). On that same day, agents from the DTSC executed a separate search warrant at the Rancho Cordova facility. Since that time, the U.S. Attorney’s Office for the Eastern District of California (“USAO EDCA”) has been overseeing criminal and civil investigations of the ESOL Retail Controlled Substances Business. The USAO EDCA has informed the Company that the investigations relate to the Company’s operation and sale of its former ESOL Retail Controlled Substances Business and that the Company and some of its current or former employees may have civil and criminal liability under the Controlled Substances Act and other federal statutes related to that business. The Company is cooperating with the investigations, which are ongoing. The Company has not accrued any amounts in respect of these investigations and cannot estimate the reasonably possible loss or any range of reasonably possible losses that the Company may incur. The Company is unable to make such an estimate because, based on what the Company knows now, in the Company’s judgment, the factual and legal issues presented in this matter are sufficiently unique that the Company is unable to identify other circumstances sufficiently comparable to provide guidance in making estimates. European Retrovirus Investigations. During the Covid-19 pandemic and in conjunction with Europol, governmental authorities of Spain conducted coordinated inspections at a large number of medical waste management facilities, including Stericycle facilities, relating to the transportation, management and disposal of waste that may have been infected with the virus, and related matters. The inspections have resulted in proceedings, in which the Company is vigorously defending itself. The Company has not accrued any amounts in respect of these investigations, as it cannot estimate the reasonably possible loss or any range of reasonably possible losses that the Company may incur. The Company is unable to make such an estimate because, based on what the Company knows now, in the Company’s judgment, the factual and legal issues presented in this matter are sufficiently unique that the Company is unable to identify other circumstances sufficiently comparable to provide guidance in making estimates. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying unaudited condensed consolidated financial statements include the accounts of Stericycle, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company's condensed consolidated financial statements were prepared in accordance with U.S. GAAP and include the assets, liabilities, revenues, and expenses of all wholly-owned subsidiaries and majority-owned subsidiaries over which the Company exercises control. Outside stockholders' interests in subsidiaries are shown on the condensed consolidated financial statements as “Noncontrolling interests”. The accompanying unaudited condensed consolidated financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and 2023, have been prepared pursuant to the rules and regulations of the SEC for interim reporting and, therefore, do not include all information and footnote disclosures normally included in audited financial statements prepared in conformity with U.S. GAAP. In the opinion of management, however, all adjustments, consisting of normal recurring adjustments necessary to present fairly the results of operations, financial position and cash flows have been made. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the 2023 Form 10-K. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year or any other period. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Some areas where the Company makes estimates include allowance for doubtful accounts, credit memo reserves, contingent liabilities, asset retirement obligations, stock compensation expense, income tax assets and liabilities, accrued employee health and welfare benefits, accrued auto and workers’ compensation self-insured claims, leases, acquisition related long-lived assets, goodwill and held for sale impairment valuations. Such estimates are based on historical trends and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from these estimates. |
Accounting Standards Issued But Not Yet Adopted | Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact on disclosures in our Notes to Condensed Consolidated Financial Statements. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires greater disaggregation of information in the rate reconciliation and the disclosure of income taxes paid by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact on disclosures in our Notes to Condensed Consolidated Financial Statements. |
REVENUES FROM CONTRACTS WITH _2
REVENUES FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues Disaggregated by Service, Primary Geographical Regions and Timing of Revenue Recognition | The following table presents revenues disaggregated by service and reportable segments: In millions Three Months Ended March 31, 2024 2023 Revenue by Service Regulated Waste and Compliance Services $ 447.8 $ 451.3 Secure Information Destruction Services 217.1 233.0 Total Revenues $ 664.9 $ 684.3 North America Regulated Waste and Compliance Services $ 376.5 $ 368.7 Secure Information Destruction Services 192.7 204.7 Total North America Segment $ 569.2 $ 573.4 International Regulated Waste and Compliance Services $ 71.3 $ 82.6 Secure Information Destruction Services 24.4 28.3 Total International Segment $ 95.7 $ 110.9 |
Schedule of Total Contract Acquisition Costs | Total contract acquisition costs, net of accumulated amortization, were classified as follows: In millions March 31, 2024 December 31, 2023 Other current assets $ 16.4 $ 16.1 Other assets 46.9 46.1 Total contract acquisition costs $ 63.3 $ 62.2 |
Schedule of Allowance for Credit Loss Activity | The changes in allowance for doubtful accounts were reported as follows: In millions Three Months Ended March 31, 2024 2023 Beginning Balance $ 44.7 $ 53.3 Bad debt expense, net of recoveries 5.9 2.2 Write-offs (3.9) (5.8) Other changes (1) 0.5 0.5 Ending Balance $ 47.2 $ 50.2 (1) Amounts consist primarily of foreign currency translation adjustments. |
ACQUISITION (Tables)
ACQUISITION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Acquisition Date Fair Value | The following table summarizes the acquisition date fair value of consideration transferred for the acquisition completed during the three months ended March 31: In millions 2024 Cash $ 14.0 Promissory Notes 1.8 Total purchase price $ 15.8 |
Summary of Purchase Price Allocation | The following table summarizes the preliminary purchase price allocation for the acquisition completed during the three months ended March 31: In millions 2024 Fixed assets $ 1.2 Intangibles (Customer Lists) 6.1 Goodwill 8.2 Other assets and liabilities, net 0.3 Total purchase price $ 15.8 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The Company’s long-term debt consisted of the following: In millions March 31, 2024 December 31, 2023 $1.2 billion Credit Facility, due in 2026 $ 753.6 $ 31.0 $125 million Term Loan, due in 2026 125.0 125.0 $600 million Senior Notes, due in 2024 (redeemed in March 2024) — 600.0 $500 million Senior Notes, due in 2029 500.0 500.0 Promissory notes and deferred consideration weighted average maturity of 2.5 years at 2024 and 2.6 years at 2023 29.0 32.9 Obligations under finance leases 14.8 16.3 Total debt 1,422.4 1,305.2 Less: current portion of total debt 17.3 19.6 Less: unamortized debt issuance costs 6.5 7.8 Long-term portion of total debt $ 1,398.6 $ 1,277.8 |
Schedule of Weighted Average Interest Rates on Long Term Debt Excluding Capital Leases | The weighted average interest rates on long-term debt, excluding finance leases, were as follows: Three Months Ended March 31, 2024 Year Ended December 31, 2023 $1.2 billion Credit Facility, due in 2026 (variable rate) 6.93 % 6.85 % $125 million Term Loan, due in 2026 (variable rate) 6.63 % 6.66 % $600 million Senior Notes, due in 2024 (fixed rate) (redeemed in March 2024) 5.38 % 5.38 % $500 million Senior Notes, due in 2029 (fixed rate) 3.88 % 3.88 % Promissory notes and deferred consideration (fixed rate) 3.43 % 3.54 % |
Schedule of Outstanding Letters of Credit and the Unused Portion of Senior Credit Facility | Amounts committed to outstanding letters of credit and the unused portion of the Company's Senior Credit Facility were as follows: In millions March 31, 2024 December 31, 2023 Outstanding letters of credit under Credit Facility $ 55.2 $ 59.0 Unused portion of the Credit Facility 391.2 1,110.0 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted (Loss) Earnings Per Share | The following table shows the effect of stock-based awards on the weighted average number of shares outstanding used in calculating diluted earnings per share: In millions of shares Three Months Ended March 31, 2024 2023 Weighted average common shares outstanding - basic 92.6 92.3 Incremental shares outstanding related to stock-based awards 0.4 0.4 Weighted average common shares outstanding - diluted 93.0 92.7 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Anti-dilutive stock-based awards excluded from the computation of diluted earnings per share using the treasury stock method include the following: In thousands of shares Three Months Ended March 31, 2024 2023 Option awards 477 815 RSU awards 102 1 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Financial Information Concerning Company's Reportable Segments | The following tables show financial information for the Company's reportable segments (see Note 2 – Revenues from Contracts with Customers for segment revenues): In millions Three Months Ended March 31, 2024 2023 Adjusted Income from Operations North America $ 149.1 $ 160.3 International 12.4 10.3 Other Costs (71.0) (85.9) Total Adjusted Income from Operations $ 90.5 $ 84.7 |
Reconciliation of Company's Primary Measure to Income from Operations | The following table reconciles the Company's primary measure of segment profitability, Adjusted Income from Operations, to Income from operations: In millions Three Months Ended March 31, 2024 2023 Total Reportable Segment Adjusted Income from Operations $ 90.5 $ 84.7 Adjusting Items: ERP and System Modernization (4.4) (2.7) Intangible Amortization (27.8) (28.2) Operational Optimization (5.6) — Portfolio Optimization (1.6) (5.6) Litigation, Settlements and Regulatory Compliance (12.2) (8.2) Income from operations $ 38.9 $ 40.0 |
REVENUES FROM CONTRACTS WITH _3
REVENUES FROM CONTRACTS WITH CUSTOMERS - Schedule of Revenues Disaggregated by Service, Primary Geographical Regions and Timing of Revenue Recognition (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 664.9 | $ 684.3 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 569.2 | 573.4 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 95.7 | 110.9 |
Regulated Waste and Compliance Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 447.8 | 451.3 |
Regulated Waste and Compliance Services | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 376.5 | 368.7 |
Regulated Waste and Compliance Services | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 71.3 | 82.6 |
Secure Information Destruction Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 217.1 | 233 |
Secure Information Destruction Services | North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 192.7 | 204.7 |
Secure Information Destruction Services | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 24.4 | $ 28.3 |
REVENUES FROM CONTRACTS WITH _4
REVENUES FROM CONTRACTS WITH CUSTOMERS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred revenues | $ 70.1 | $ 72.6 | |
Contract acquisition costs, weighted average estimated period | 6 years 6 months | ||
Amortized deferred sales incentive cost | $ 4.4 | $ 4 |
REVENUES FROM CONTRACTS WITH _5
REVENUES FROM CONTRACTS WITH CUSTOMERS - Schedule of Total Contract Acquisition Costs (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Disaggregation of Revenue [Line Items] | ||
Total contract acquisition costs | $ 63.3 | $ 62.2 |
Other current assets | ||
Disaggregation of Revenue [Line Items] | ||
Total contract acquisition costs | 16.4 | 16.1 |
Other assets | ||
Disaggregation of Revenue [Line Items] | ||
Total contract acquisition costs | $ 46.9 | $ 46.1 |
REVENUES FROM CONTRACTS WITH _6
REVENUES FROM CONTRACTS WITH CUSTOMERS - Allowance for Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance | $ 44.7 | $ 53.3 |
Bad debt expense, net of recoveries | 5.9 | 2.2 |
Write-offs | (3.9) | (5.8) |
Other changes | 0.5 | 0.5 |
Ending Balance | $ 47.2 | $ 50.2 |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - business | 12 Months Ended | |
Jan. 31, 2024 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | ||
Number of acquisitions | 0 | |
Southeastern U.S. Regulated Waste | Customer relationships | ||
Business Acquisition [Line Items] | ||
Estimated useful life | 15 years |
ACQUISITION - Summary of Acquis
ACQUISITION - Summary of Acquisition Date Fair Value (Details) - Southeastern U.S. Regulated Waste $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Business Acquisition [Line Items] | |
Cash | $ 14 |
Promissory notes | 1.8 |
Total purchase price | $ 15.8 |
ACQUISITION - Summary of Purcha
ACQUISITION - Summary of Purchase Price Allocation (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Business Acquisition [Line Items] | ||
Goodwill | $ 2,758 | $ 2,755.6 |
Southeastern U.S. Regulated Waste | ||
Business Acquisition [Line Items] | ||
Fixed assets | 1.2 | |
Intangibles (Customer Lists) | 6.1 | |
Goodwill | 8.2 | |
Other assets and liabilities, net | 0.3 | |
Total purchase price | $ 15.8 |
RESTRUCTURING AND DIVESTITURES
RESTRUCTURING AND DIVESTITURES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 19, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||
Operational optimization charges | $ 5.6 | $ 0 | |
Divestiture losses, net | 0 | $ 5 | |
Disposal group, disposed of by sale, not discontinued operations | International Container Manufacturing Operations | International | |||
Restructuring Cost and Reserve [Line Items] | |||
Proceeds from divestiture of businesses, net | $ 2.2 | ||
Divestiture losses, net | $ 5 |
DEBT - Schedule of Long-Term De
DEBT - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Obligations under finance leases | $ 14.8 | $ 16.3 |
Total debt | 1,422.4 | 1,305.2 |
Less: current portion of total debt | 17.3 | 19.6 |
Less: unamortized debt issuance costs | 6.5 | 7.8 |
Long-term portion of total debt | 1,398.6 | 1,277.8 |
$600 million Senior Notes, due in 2024 (redeemed in March 2024) | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 600 |
$500 million Senior Notes, due in 2029 | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 500 | 500 |
Promissory notes and deferred consideration | Promissory note | ||
Debt Instrument [Line Items] | ||
Long-term debt | 29 | 32.9 |
$1.2 billion Credit Facility, due in 2026 | Credit agreement amended, due in 2026 | Line of credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 753.6 | 31 |
$125 million Term Loan, due in 2026 | Credit agreement amended, due in 2026 | Line of credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 125 | $ 125 |
DEBT - Schedule of Long-Term _2
DEBT - Schedule of Long-Term Debt - Additional (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
$600 million Senior Notes, due in 2024 (redeemed in March 2024) | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, face amount | $ 600,000,000 | |
$500 million Senior Notes, due in 2029 | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, face amount | $ 500,000,000 | |
Promissory notes and deferred consideration | Promissory note | ||
Debt Instrument [Line Items] | ||
Long-term debt, maturity | 2 years 6 months | 2 years 7 months 6 days |
$1.2 billion Credit Facility, due in 2026 | Credit agreement amended, due in 2026 | Line of credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity of line of credit facility | $ 1,200,000,000 | |
$125 million Term Loan, due in 2026 | Credit agreement amended, due in 2026 | Line of credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity of line of credit facility | $ 125,000,000 |
DEBT - Narrative (Detail)
DEBT - Narrative (Detail) | 3 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 14, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jun. 15, 2023 USD ($) | |
Credit agreement amended, due in 2026 | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Maximum consolidated leverage ratio | 400% | |||
EBITDA requirement amount | $ 50,000,000 | |||
Leverage ratio | 3.51 | |||
Leverage ratio, increase | 0.30 | |||
$600 million Senior Notes, due in 2024 (redeemed in March 2024) | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Debt redeemed | $ 600,000,000 | |||
Credit Agreement Amended June 2023 | ||||
Debt Instrument [Line Items] | ||||
Finance lease, maximum amount under debt agreement | $ 200,000,000 | |||
Level 2 | ||||
Debt Instrument [Line Items] | ||||
Estimated fair value of debt | $ 1,400,000,000 | $ 1,300,000,000 |
DEBT - Schedule of Weighted Ave
DEBT - Schedule of Weighted Average Interest Rates on Long-term Debt Excluding Finance Leases (Detail) | Mar. 31, 2024 | Dec. 31, 2023 |
Credit agreement amended, due in 2026 | Line of credit | $1.2 billion Credit Facility, due in 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt, weighted average interest rate | 6.93% | 6.85% |
Credit agreement amended, due in 2026 | Line of credit | $125 million Term Loan, due in 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt, weighted average interest rate | 6.63% | 6.66% |
$600 million Senior Notes, due in 2024 (redeemed in March 2024) | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, weighted average interest rate | 5.38% | 5.38% |
$500 million Senior Notes, due in 2029 | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, weighted average interest rate | 3.88% | 3.88% |
Promissory notes and deferred consideration | Promissory note | ||
Debt Instrument [Line Items] | ||
Long-term debt, weighted average interest rate | 3.43% | 3.54% |
DEBT - Schedule of Outstanding
DEBT - Schedule of Outstanding Letters of Credit and the Unused Portion of Senior Credit Facility (Detail) - Senior credit facility - Line of credit - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Outstanding letters of credit under Credit Facility | $ 55.2 | $ 59 |
Unused portion of the Credit Facility | $ 391.2 | $ 1,110 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 7.4 | $ 8.5 |
Effective tax rate | 36.10% | 42.90% |
EARNINGS PER COMMON SHARE - Com
EARNINGS PER COMMON SHARE - Computation of Basic and Diluted Earnings (Loss) Per Share (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Weighted average common shares outstanding - basic (in shares) | 92.6 | 92.3 |
Incremental shares outstanding related to stock-based awards (in shares) | 0.4 | 0.4 |
Weighted average common shares outstanding - diluted (in shares) | 93 | 92.7 |
EARNINGS PER COMMON SHARE - Sch
EARNINGS PER COMMON SHARE - Schedule of Antidilutive Securities Excluded from EPS Calculation (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Option awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted earnings (loss) per share (in shares) | 477 | 815 |
RSU awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares excluded from computation of diluted earnings (loss) per share (in shares) | 102 | 1 |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
SEGMENT REPORTING - Financial I
SEGMENT REPORTING - Financial Information of Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Total Adjusted Income from Operations | $ 90.5 | $ 84.7 |
Other Costs | ||
Segment Reporting Information [Line Items] | ||
Total Adjusted Income from Operations | (71) | (85.9) |
North America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Adjusted Income from Operations | 149.1 | 160.3 |
International | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Adjusted Income from Operations | $ 12.4 | $ 10.3 |
SEGMENT REPORTING - Reconciliat
SEGMENT REPORTING - Reconciliation of Segment Profitability to Income from Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting [Abstract] | ||
Total Reportable Segment Adjusted Income from Operations | $ 90.5 | $ 84.7 |
ERP and System Modernization | (4.4) | (2.7) |
Intangible Amortization | (27.8) | (28.2) |
Operational Optimization | (5.6) | 0 |
Portfolio Optimization | (1.6) | (5.6) |
Litigation, Settlements and Regulatory Compliance | (12.2) | (8.2) |
Income from operations | $ 38.9 | $ 40 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - Government Investigations | 3 Months Ended |
Mar. 31, 2024 | |
Loss Contingencies [Line Items] | |
Compliance monitor period | 2 years |
Department Of Justice | |
Loss Contingencies [Line Items] | |
Deferred prosecution period | 3 years |