Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 23, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-14267 | |
Entity Registrant Name | REPUBLIC SERVICES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 65-0716904 | |
Entity Address, Address Line One | 18500 North Allied Way | |
Entity Address, City or Town | Phoenix, | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85054 | |
City Area Code | 480 | |
Local Phone Number | 627-2700 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | RSG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 319,144,722 | |
Entity Central Index Key | 0001060391 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 55.6 | $ 70.5 |
Accounts receivable, less allowance for doubtful accounts and other of $35.7 and $34.3, respectively | 1,162.9 | 1,102.7 |
Prepaid expenses and other current assets | 255.4 | 391.2 |
Total current assets | 1,473.9 | 1,564.4 |
Restricted cash and marketable securities | 121.3 | 108.1 |
Property and equipment, net | 8,257.6 | 8,020.1 |
Goodwill | 11,650.5 | 11,400.1 |
Other intangible assets, net | 124.1 | 106.5 |
Other assets | 701.7 | 417.8 |
Total assets | 22,329.1 | 21,617 |
Current liabilities: | ||
Accounts payable | 697.2 | 761.5 |
Notes payable and current maturities of long-term debt | 912.8 | 690.7 |
Deferred revenue | 341.1 | 338.7 |
Accrued landfill and environmental costs, current portion | 153.2 | 130.6 |
Accrued interest | 79.7 | 68.5 |
Other accrued liabilities | 813.4 | 728.6 |
Total current liabilities | 2,997.4 | 2,718.6 |
Long-term debt, net of current maturities | 7,705.8 | 7,646.8 |
Accrued landfill and environmental costs, net of current portion | 1,702 | 1,701.6 |
Deferred income taxes and other long-term tax liabilities, net | 1,074.6 | 1,028.3 |
Insurance reserves, net of current portion | 279.3 | 270.8 |
Other long-term liabilities | 591.5 | 321.4 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.01 per share; 50 shares authorized; none issued | 0 | 0 |
Common stock, par value $0.01 per share; 750 shares authorized; 353.3 and 351.9 issued and outstanding, respectively | 3.5 | 3.5 |
Additional paid-in capital | 4,979.5 | 4,924.9 |
Retained earnings | 5,155.9 | 4,750.5 |
Treasury stock, at cost; 33.9 and 29.4 shares, respectively | (2,153.9) | (1,782.6) |
Accumulated other comprehensive income (loss), net of tax | (8.5) | 30.8 |
Total Republic Services, Inc. stockholders’ equity | 7,976.5 | 7,927.1 |
Non-controlling interests in consolidated subsidiary | 2 | 2.4 |
Total stockholders’ equity | 7,978.5 | 7,929.5 |
Total liabilities and stockholders’ equity | $ 22,329.1 | $ 21,617 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 35.7 | $ 34.3 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 353,300,000 | 351,900,000 |
Common stock, shares outstanding (in shares) | 353,300,000 | 351,900,000 |
Treasury stock, shares (in shares) | 33,900,000 | 29,400,000 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statement of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,646,900 | $ 2,565,700 | $ 7,722,700 | $ 7,510,900 |
Expenses: | ||||
Cost of operations | 1,631,400 | 1,577,400 | 4,754,400 | 4,624,400 |
Depreciation, amortization and depletion | 267,300 | 262,400 | 783,100 | 781,000 |
Accretion | 20,500 | 20,100 | 61,400 | 60,700 |
Selling, general and administrative | 275,400 | 260,900 | 806,300 | 775,000 |
Gain on disposition of assets and asset impairments, net | (24,000) | (4,600) | (23,500) | (5,300) |
Restructuring charges | 8,500 | 9,200 | 13,000 | 22,500 |
Operating income | 467,800 | 440,300 | 1,328,000 | 1,252,600 |
Interest expense | (98,000) | (96,000) | (296,900) | (287,300) |
Loss from unconsolidated equity method investment | (4,000) | (5,600) | (27,200) | (5,700) |
Loss on extinguishment of debt | 0 | 0 | 0 | (300) |
Interest income | 2,000 | 500 | 5,400 | 1,000 |
Other income, net | 1,700 | 1,100 | 1,600 | 3,300 |
Income before income taxes | 369,500 | 340,300 | 1,010,900 | 963,600 |
Provision for income taxes | 71,500 | 77,400 | 227,100 | 227,100 |
Net income | 298,000 | 262,900 | 783,800 | 736,500 |
Net loss (income) attributable to non-controlling interests in consolidated subsidiary | 300 | 500 | 200 | (500) |
Net income attributable to Republic Services, Inc. | $ 298,300 | $ 263,400 | $ 784,000 | $ 736,000 |
Basic earnings per share attributable to Republic Services, Inc. stockholders: | ||||
Basic earnings per share (in dollars per share) | $ 0.93 | $ 0.81 | $ 2.44 | $ 2.25 |
Weighted average common shares outstanding (in shares) | 320,633 | 325,483 | 321,544 | 327,830 |
Diluted earnings per share attributable to Republic Services, Inc. stockholders: | ||||
Diluted earnings per share (in dollars per share) | $ 0.93 | $ 0.81 | $ 2.43 | $ 2.23 |
Weighted average common and common equivalent shares outstanding (in shares) | 321,710 | 326,944 | 322,644 | 329,326 |
Cash dividends per common share (in dollars per share) | $ 0.405 | $ 0.375 | $ 1.155 | $ 1.065 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 298 | $ 262.9 | $ 783.8 | $ 736.5 |
Hedging activity: | ||||
Settlements | 1.2 | 2.8 | ||
Realized gain reclassified into earnings | (0.5) | (0.9) | ||
Realized gain reclassified into earnings | (1.2) | (2.2) | ||
Unrealized (losses) gains | (11.9) | (43) | ||
Unrealized (losses) gains | 3.2 | 32.7 | ||
Pension activity: | ||||
Change in funded status of pension plan obligation | 0 | 0 | (0.8) | 0 |
Other comprehensive income (loss), net of tax | (12.4) | 3.2 | (44.7) | 33.3 |
Comprehensive income | 285.6 | 266.1 | 739.1 | 769.8 |
Comprehensive loss (income) attributable to non-controlling interests | 0.3 | 0.5 | 0.2 | (0.5) |
Comprehensive income attributable to Republic Services, Inc. | $ 285.9 | $ 266.6 | $ 739.3 | $ 769.3 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statement of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income, Net of Tax | Noncontrolling Interests In Consolidated Subsidiary |
Balance (in shares) at Dec. 31, 2017 | 350.1 | 18.4 | |||||
Balance at beginning of period at Dec. 31, 2017 | $ 7,961.1 | $ 3.5 | $ 4,839.6 | $ 4,152.5 | $ (1,059.4) | $ 22.6 | $ 2.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 237.9 | 237.7 | 0.2 | ||||
Other comprehensive income | 19.1 | 19.1 | |||||
Cash dividends declared | (113.3) | (113.3) | |||||
Issuances of common stock (in shares) | 1 | 0.3 | |||||
Issuances of common stock | 1.3 | 20.6 | $ (19.3) | ||||
Stock-based compensation | 10.4 | 11.4 | (1) | ||||
Purchase of common stock for treasury (in shares) | (3.8) | ||||||
Purchase of common stock for treasury | (235.6) | $ (235.6) | |||||
Balance (in shares) at Mar. 31, 2018 | 351.1 | 22.5 | |||||
Balance at end of period at Mar. 31, 2018 | 7,914.3 | $ 3.5 | 4,871.6 | 4,309.3 | $ (1,314.3) | 41.7 | 2.5 |
Balance (in shares) at Dec. 31, 2017 | 350.1 | 18.4 | |||||
Balance at beginning of period at Dec. 31, 2017 | 7,961.1 | $ 3.5 | 4,839.6 | 4,152.5 | $ (1,059.4) | 22.6 | 2.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 736.5 | ||||||
Balance (in shares) at Sep. 30, 2018 | 351.8 | 27.2 | |||||
Balance at end of period at Sep. 30, 2018 | 7,923.9 | $ 3.5 | 4,911 | 4,571.6 | $ (1,620.4) | 56 | 2.2 |
Balance (in shares) at Mar. 31, 2018 | 351.1 | 22.5 | |||||
Balance at beginning of period at Mar. 31, 2018 | 7,914.3 | $ 3.5 | 4,871.6 | 4,309.3 | $ (1,314.3) | 41.7 | 2.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 235.7 | 234.9 | 0.8 | ||||
Other comprehensive income | 11.1 | 11.1 | |||||
Cash dividends declared | (112.4) | (112.4) | |||||
Issuances of common stock (in shares) | 0.3 | ||||||
Issuances of common stock | 6.9 | 7.1 | $ (0.2) | ||||
Stock-based compensation | 8.8 | 9.7 | (0.9) | ||||
Purchase of common stock for treasury (in shares) | (3.3) | ||||||
Purchase of common stock for treasury | (215) | $ (215) | |||||
Distributions paid | (0.6) | (0.6) | |||||
Balance (in shares) at Jun. 30, 2018 | 351.4 | 25.8 | |||||
Balance at end of period at Jun. 30, 2018 | 7,848.8 | $ 3.5 | 4,888.4 | 4,430.9 | $ (1,529.5) | 52.8 | 2.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 262.9 | 263.4 | (0.5) | ||||
Other comprehensive income | 3.2 | 3.2 | |||||
Cash dividends declared | (121.7) | (121.7) | |||||
Issuances of common stock (in shares) | 0.4 | ||||||
Issuances of common stock | 11.7 | 12.1 | $ (0.4) | ||||
Stock-based compensation | 9.5 | 10.5 | (1) | ||||
Purchase of common stock for treasury (in shares) | (1.4) | ||||||
Purchase of common stock for treasury | (90.5) | $ (90.5) | |||||
Balance (in shares) at Sep. 30, 2018 | 351.8 | 27.2 | |||||
Balance at end of period at Sep. 30, 2018 | 7,923.9 | $ 3.5 | 4,911 | 4,571.6 | $ (1,620.4) | 56 | 2.2 |
Balance (in shares) at Dec. 31, 2018 | 351.9 | 29.4 | |||||
Balance at beginning of period at Dec. 31, 2018 | 7,929.5 | $ 3.5 | 4,924.9 | 4,750.5 | $ (1,782.6) | 30.8 | 2.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 234.9 | 234.2 | 0.7 | ||||
Other comprehensive income | (11.4) | (11.4) | |||||
Cash dividends declared | (120.7) | (120.7) | |||||
Issuances of common stock (in shares) | 0.9 | 0.2 | |||||
Issuances of common stock | (9.1) | 7.7 | $ (16.8) | ||||
Stock-based compensation | 10.9 | 12 | (1.1) | ||||
Purchase of common stock for treasury (in shares) | (1.5) | ||||||
Purchase of common stock for treasury | (111.5) | $ (111.5) | |||||
Balance (in shares) at Mar. 31, 2019 | 352.8 | 31.1 | |||||
Balance at end of period at Mar. 31, 2019 | 7,922.6 | $ 3.5 | 4,944.6 | 4,857.5 | $ (1,910.9) | 24.8 | 3.1 |
Balance (in shares) at Dec. 31, 2018 | 351.9 | 29.4 | |||||
Balance at beginning of period at Dec. 31, 2018 | 7,929.5 | $ 3.5 | 4,924.9 | 4,750.5 | $ (1,782.6) | 30.8 | 2.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 783.8 | ||||||
Cash dividends declared | (370.2) | ||||||
Balance (in shares) at Sep. 30, 2019 | 353.3 | 33.9 | |||||
Balance at end of period at Sep. 30, 2019 | 7,978.5 | $ 3.5 | 4,979.5 | 5,155.9 | $ (2,153.9) | (8.5) | 2 |
Balance (in shares) at Mar. 31, 2019 | 352.8 | 31.1 | |||||
Balance at beginning of period at Mar. 31, 2019 | 7,922.6 | $ 3.5 | 4,944.6 | 4,857.5 | $ (1,910.9) | 24.8 | 3.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 250.9 | 251.5 | (0.6) | ||||
Other comprehensive income | (20.9) | (20.9) | |||||
Cash dividends declared | (120.2) | (120.2) | |||||
Issuances of common stock (in shares) | 0.2 | ||||||
Issuances of common stock | 6 | 6.3 | $ (0.3) | ||||
Stock-based compensation | 8.9 | 9.8 | (0.9) | ||||
Purchase of common stock for treasury (in shares) | (1.1) | ||||||
Purchase of common stock for treasury | (91.9) | $ (91.9) | |||||
Distributions paid | (0.2) | (0.2) | |||||
Balance (in shares) at Jun. 30, 2019 | 353 | 32.2 | |||||
Balance at end of period at Jun. 30, 2019 | 7,955.2 | $ 3.5 | 4,960.7 | 4,987.9 | $ (2,003.1) | 3.9 | 2.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 298 | 298.3 | (0.3) | ||||
Other comprehensive income | (12.4) | (12.4) | |||||
Cash dividends declared | (129.3) | (129.3) | |||||
Issuances of common stock (in shares) | 0.3 | ||||||
Issuances of common stock | 8.4 | 8.7 | $ (0.3) | ||||
Stock-based compensation | 9.1 | 10.1 | (1) | ||||
Purchase of common stock for treasury (in shares) | (1.7) | ||||||
Purchase of common stock for treasury | (150.5) | $ (150.5) | |||||
Balance (in shares) at Sep. 30, 2019 | 353.3 | 33.9 | |||||
Balance at end of period at Sep. 30, 2019 | $ 7,978.5 | $ 3.5 | $ 4,979.5 | $ 5,155.9 | $ (2,153.9) | $ (8.5) | $ 2 |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statement of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash provided by operating activities: | ||
Net income | $ 783.8 | $ 736.5 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation, amortization, depletion and accretion | 844.5 | 841.7 |
Non-cash interest expense | 34.9 | 31.4 |
Restructuring related charges | 13 | 22.5 |
Stock-based compensation | 29.2 | 29.4 |
Deferred tax provision | 72.9 | 113.7 |
Provision for doubtful accounts, net of adjustments | 23.4 | 24.4 |
Loss on extinguishment of debt | 0 | 0.3 |
Gain on disposition of assets and asset impairments, net | (22.4) | (1.7) |
Environmental adjustments | (9.6) | 3.3 |
Loss from unconsolidated equity method investment | 27.2 | 5.7 |
Other non-cash items | (0.9) | 0.6 |
Change in assets and liabilities, net of effects from business acquisitions and divestitures: | ||
Accounts receivable | (65.3) | (72.1) |
Prepaid expenses and other assets | 98.3 | (13.5) |
Accounts payable | (9.3) | 58.6 |
Restructuring expenditures | (7.9) | (18.7) |
Capping, closure and post-closure expenditures | (47.7) | (42.5) |
Remediation expenditures | (29.4) | (30.2) |
Other liabilities | 52.2 | 26.4 |
Proceeds from retirement of certain hedging relationships | 0 | 31.1 |
Cash provided by operating activities | 1,786.9 | 1,746.9 |
Cash used in investing activities: | ||
Purchases of property and equipment | (908.3) | (820.5) |
Proceeds from sales of property and equipment | 11.7 | 7.9 |
Cash used in acquisitions and investments, net of cash and restricted cash acquired | (455.9) | (130.5) |
Cash received from business divestitures | 41.6 | 10.6 |
Purchases of restricted marketable securities | (9.1) | (35.4) |
Sales of restricted marketable securities | 8.6 | 36.2 |
Other | (5.2) | 0 |
Cash used in investing activities | (1,316.6) | (931.7) |
Cash used in financing activities: | ||
Proceeds from notes payable and long-term debt, net of fees | 3,504.8 | 3,296.7 |
Proceeds from issuance of senior notes, net of discount and fees | 891.9 | 782 |
Payments of notes payable and long-term debt and senior notes | (4,145.9) | (4,032.6) |
Issuances of common stock, net | 5.3 | 19.9 |
Purchases of common stock for treasury | (353.8) | (574.9) |
Cash dividends paid | (361.9) | (340) |
Distributions paid to noncontrolling interests in consolidated subsidiary | (0.2) | (0.6) |
Other | (15.2) | (7.9) |
Cash used in financing activities | (475) | (857.4) |
Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents | (4.7) | (42.2) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year | 133.3 | 179.1 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 128.6 | $ 136.9 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Republic Services, Inc., a Delaware corporation, and its consolidated subsidiaries (also referred to collectively as Republic, the Company, we, us, or our), is the second largest provider of non-hazardous solid waste collection, transfer, recycling, disposal and environmental services in the United States, as measured by revenue. We manage and evaluate our operations through two field groups, Group 1 and Group 2, which we have identified as our reportable segments. The unaudited consolidated financial statements include the accounts of Republic Services, Inc. and its wholly owned and majority owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). We account for investments in entities in which we do not have a controlling financial interest under either the equity method or cost method of accounting, as appropriate. All material intercompany accounts and transactions have been eliminated in consolidation. We have prepared these unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP has been condensed or omitted. In the opinion of management, these financial statements include all adjustments that, unless otherwise disclosed, are of a normal recurring nature and necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of the results you can expect for a full year. You should read these financial statements in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. For comparative purposes, certain prior year amounts have been reclassified to conform to the current year presentation. All dollar amounts in tabular presentations are in millions, except per share amounts and unless otherwise noted. Management’s Estimates and Assumptions In preparing our financial statements, we make numerous estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. We must make these estimates and assumptions because certain information we use is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. In preparing our financial statements, the more critical and subjective areas that deal with the greatest amount of uncertainty relate to our accounting for our long-lived assets, including recoverability, development costs, and final capping, closure and post-closure costs; our valuation allowances for accounts receivable and deferred tax assets; our liabilities for potential litigation, claims and assessments; our liabilities for environmental remediation, multiemployer pension funds, employee benefit plans, deferred taxes, uncertain tax positions, and insurance reserves; and our estimates of the fair values of assets acquired and liabilities assumed in any acquisition. Each of these items is discussed in more detail in our description of our significant accounting policies in Note 2, Summary of Significant Accounting Policies , of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. Our actual results may differ significantly from our estimates. New Accounting Pronouncements Accounting Standards Adopted Effective January 1, 2019, we adopted the following accounting standard updates (ASUs) as issued by the Financial Accounting Standards Board (FASB): ASU Effective Date ASU 2016-02 Leases (Topic 842) January 1, 2019 ASU 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities January 1, 2019 ASU 2018-16 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting January 1, 2019 ASU 2018-02 Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income January 1, 2019 ASU 2018-07 Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting January 1, 2019 ASU 2018-15 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract January 1, 2019 Leases Effective January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) (ASC 842 or the new leasing standard) using the optional transition method prescribed by ASU 2018-11, Leases (Topic 842): Targeted Improvements . Upon adoption of the new leasing standard, we recognized a right-of-use asset and a right-of-use liability for leases classified as operating leases in our consolidated balance sheet. We applied the package of practical expedients to leases that commenced before the effective date whereby we elected to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. To assist in quantifying the impact on our consolidated financial statements and supplementing our existing disclosures, we designed internal controls over the adoption and implemented a software solution to manage and account for our leases. As of January 1, 2019, we recognized a right-of-use liability for our operating leases of $256.3 million classified as other accrued liabilities and other long-term liabilities and a corresponding right-of-use asset of $236.2 million classified as other long-term assets in our consolidated balance sheet. The right-of-use asset reflects adjustments for certain favorable or unfavorable leases recognized through acquisitions, prepaid or accrued rent, asset impairments and lease incentives, including but not limited to cash incentives, rent abatement or leasehold improvements paid by the lessor. We did not recognize a cumulative effect adjustment to retained earnings as of January 1, 2019 as the standard did not have a material impact on our consolidated statement of income. In addition, the standard did not have a material impact on our accounting for finance (capital) leases. We assessed the disclosure requirements under the new leasing standard as part of our adoption. Refer to Note 4, Other Assets , Note 5, Other Liabilities , and Note 8, Leases , included herein for our enhanced supplemental disclosures. Derivatives and Hedging Effective January 1, 2019, we adopted the FASB's ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). We adopted the new guidance over income statement presentation and enhanced disclosures prospectively, and we adopted the guidance over the elimination of the separate measurement of ineffectiveness on a modified retrospective basis to existing hedging relationships as of the date of adoption. Prior to adoption, the net periodic earnings of our fair value hedges were presented within other income, net in our consolidated statement of income and are now presented within interest expense in our consolidated statement of income, i.e. the same line item as the effect of the hedged item. Our adoption of ASU 2017-12 did not have a material impact on our consolidated financial statements. Effective January 1, 2019, in conjunction with ASU 2017-12, we adopted the FASB's ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting (ASU 2018-16) on a prospective basis. LIBOR is expected to no longer be published by 2021. Consequently, the FASB added the OIS rate based on SOFR as an eligible benchmark interest rate in order to facilitate the LIBOR to SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. We are developing a plan to transition our interest rate swaps from LIBOR to SOFR. Our adoption of ASU 2018-16 did not have a material impact on our consolidated financial statements for the nine months ended September 30, 2019. Reclassifications of Certain Tax Effects from Accumulated Other Comprehensive Income Effective January 1, 2019, we adopted the FASB's ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02). The amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act (the Tax Act). The amendments only relate to the reclassification of the income tax effects of the Tax Act, and the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. Consequently, we reclassified $5.4 million of stranded tax effects from accumulated other comprehensive income to retained earnings. Improvements to Nonemployee Share-Based Payment Accounting Effective January 1, 2019, we adopted the FASB's ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07). ASU 2018-07 simplifies several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. We will apply the guidance prescribed by this update on a prospective basis. Our adoption of ASU 2018-07 did not have a material impact on our consolidated financial statements for the nine months ended September 30, 2019. Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Effective January 1, 2019, we early adopted the FASB's ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) No. 2018-15 Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15) using a prospective approach. In accordance with the standard, we present capitalized implementation costs incurred in a hosting arrangement that is a service contract as other assets on our consolidated balance sheet. This presentation is consistent with the presentation of the prepayment of fees for the hosting arrangement. Historically, implementation costs were presented as a component of property and equipment, net. As of January 1, 2019, we reclassified $28.7 million of capitalized implementation costs incurred in a hosting arrangement that is a service contract from property and equipment, net to other assets on our consolidated balance sheet. During the three and nine months ended September 30, 2019, we recognized $9.0 million and $25.3 million, respectively, of amortization expense for the prepayment of fees and capitalized implementation costs incurred in a hosting arrangement as a component of depreciation, amortization and depletion in our consolidated statement of income. During the nine months ended September 30, 2019, we recognized $9.0 million of payments for capitalized implementation costs in the same manner as payments made for fees associated with the hosting arrangement as a component of cash provided by operating activities in our consolidated statement of cash flows. Accounting Standards Issued but not yet Adopted Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 will replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We are currently assessing the effect this guidance may have on our consolidated financial statements. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. ASU 2018-13 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We are currently assessing the effect this guidance may have on our consolidated financial statements. Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans (ASU 2018-14). ASU 2018-14 removes disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. Although narrow in scope, the amendments are considered an important part of the FASB’s efforts to improve the effectiveness of disclosures in the notes to financial statements. ASU 2018-14 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year. Early adoption is permitted for all entities. We are currently assessing the effect this guidance may have on our consolidated financial statements. |
Business Acquisitions, Investme
Business Acquisitions, Investments and Restructuring Charges | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions, Investments and Restructuring Charges | BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES Acquisitions We acquired various waste businesses during the nine months ended September 30, 2019 and 2018. The purchase price for these business acquisitions and the allocations of the purchase price follows: 2019 2018 Purchase price: Cash used in acquisitions, net of cash acquired $ 424.3 $ 111.1 Contingent consideration 2.5 — Holdbacks 16.0 10.9 Fair value, future minimum finance lease payments 5.8 — Total 448.6 122.0 Allocated as follows: Accounts receivable 18.3 1.9 Landfill airspace — 22.2 Property and equipment 143.0 17.5 Operating right-of-use lease assets 18.1 — Other assets 2.5 0.1 Inventory 1.1 0.2 Accounts payable (11.5) (0.3) Environmental remediation liabilities (0.1) — Closure and post-closure liabilities — (1.7) Operating right-of-use lease liabilities (18.4) — Other liabilities (2.3) (3.7) Fair value of tangible assets acquired and liabilities assumed 150.7 36.2 Excess purchase price to be allocated $ 297.9 $ 85.8 Excess purchase price allocated as follows: Other intangible assets $ 31.5 $ 14.8 Goodwill 266.4 71.0 Total allocated $ 297.9 $ 85.8 The purchase price allocations are preliminary and are based on information existing at the acquisition dates. Accordingly, the purchase price allocations are subject to change. We are finalizing the valuation of tangible and intangible assets for certain acquisitions that closed during the three months ended September 30, 2019. Substantially all of the goodwill and intangible assets recorded for these acquisitions are deductible for tax purposes. These acquisitions are not material to our results of operations, individually or in the aggregate. As a result, no pro forma financial information is provided. Investments In 2019 and 2018, we acquired non-controlling equity interests in certain limited liability companies that qualified for investment tax credits under Section 48 of the Internal Revenue Code. In exchange for our non-controlling interests, we made certain capital contributions of $14.1 million and $17.4 million, which were recorded to other assets in our September 30, 2019 and 2018 consolidated balance sheets, respectively. During the nine months ended September 30, 2019 and 2018, we also reduced the carrying value of these investments by $27.2 million and $5.7 million, respectively, as a result of tax credits allocated to us, cash distributions and our share of income and loss pursuant to the terms of the limited liability company agreements. Restructuring Charges In January 2018, we eliminated certain positions following the consolidation of select back-office functions, including but not limited to the integration of our National Accounts support functions into our existing corporate support functions. These changes include a reduction in administrative staffing and closing of certain office locations. During the three and nine months ended September 30, 2019, we incurred restructuring charges of $8.5 million and $13.0 million, respectively, that primarily related to upgrades to our back-office software systems. During the three and nine months ended September 30, 2018, we incurred restructuring charges of $9.2 million and $22.5 million, respectively, that primarily consisted of severance and other employee termination benefits and the closure of offices with lease agreements with non-cancelable terms. We paid $7.9 million and $18.7 million during the nine months ended September 30, 2019 and 2018, respectively, related to these restructuring efforts. In 2019, we expect to incur additional restructuring charges of approximately $3 million to $5 million primarily related to upgrades to our back-office software systems. Substantially all of these restructuring charges will be recorded in our corporate segment. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Our senior management evaluates, oversees and manages the financial performance of our operations through two field groups, referred to as Group 1 and Group 2. Goodwill A summary of the activity and balances in goodwill accounts by reporting segment follows: Balance as of December 31, 2018 Acquisitions Divestitures Adjustments to Acquisitions Balance as of September 30, 2019 Group 1 $ 6,150.6 $ 85.9 $ — $ (1.2) $ 6,235.3 Group 2 5,249.5 180.5 (14.6) (0.2) 5,415.2 Total $ 11,400.1 $ 266.4 $ (14.6) $ (1.4) $ 11,650.5 Other Intangible Assets, Net Other intangible assets, net, include values assigned to customer relationships, non-compete agreements and trade names, and are amortized over periods ranging from 1 to 18 years. A summary of the activity and balances by intangible asset type follows: Gross Intangible Assets Accumulated Amortization Other Intangible Assets, Net as of September 30, 2019 Balance as of December 31, 2018 Acquisitions Adjustments and Other (1) Balance as of September 30, 2019 Balance as of December 31, 2018 Additions Charged to Expense Adjustments and Other (1) Balance as of September 30, 2019 Customer relationships, franchise and other municipal agreements $ 692.4 $ 26.1 $ — $ 718.5 $ (607.2) $ (11.2) $ 0.2 $ (618.2) $ 100.3 Non-compete agreements 37.0 7.0 0.9 44.9 (31.5) (2.9) — (34.4) 10.5 Other intangible assets 64.3 — (6.1) 58.2 (48.5) (0.6) 4.2 (44.9) 13.3 Total $ 793.7 $ 33.1 $ (5.2) $ 821.6 $ (687.2) $ (14.7) $ 4.4 $ (697.5) $ 124.1 (1) In accordance with our adoption of the new leasing standard, we transferred $1.9 million of net favorable lease assets recognized through historical acquisitions to other assets as of January 1, 2019. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | OTHER ASSETS Prepaid Expenses and Other Current Assets A summary of prepaid expenses and other current assets as of September 30, 2019 and December 31, 2018 follows: 2019 2018 Prepaid expenses $ 88.0 $ 75.6 Inventories 55.3 53.1 Other non-trade receivables 39.0 34.4 Reinsurance receivable 31.4 25.7 Income tax receivable 17.6 187.7 Prepaid fees for cloud-based hosting arrangements, current 11.8 10.2 Other current assets 12.3 4.5 Total $ 255.4 $ 391.2 Other Assets A summary of other assets as of September 30, 2019 and December 31, 2018 follows: 2019 2018 Right-of-use lease asset (1) $ 243.1 $ — Deferred compensation plan 110.4 100.0 Deferred contract costs and sales commissions 82.4 89.2 Reinsurance receivable 78.0 68.0 Investments 58.6 73.0 Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements (2) 33.6 — Amounts recoverable for capping, closure and post-closure obligations 32.8 30.5 Interest rate swaps and locks 13.1 12.8 Other derivative assets 4.9 — Deferred financing costs 3.3 4.2 Other 41.5 40.1 Total $ 701.7 $ 417.8 (1) Refer to Note 1, Basis of Presentation , for discussion regarding our adoption of ASC 842. (2) In accordance with our adoption of ASU 2018-15, capitalized implementation costs for cloud-based hosting arrangements are presented as other assets as of September 30, 2019. Similar costs are presented as a component of property and equipment, net as of December 31, 2018. |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | OTHER LIABILITIES Other Accrued Liabilities A summary of other accrued liabilities as of September 30, 2019 and December 31, 2018 follows: 2019 2018 Accrued payroll and benefits $ 206.0 $ 205.1 Insurance reserves, current 156.7 152.9 Accrued fees and taxes 139.7 124.2 Accrued dividends 129.3 121.0 Operating right-of-use lease liabilities, current (1) 36.6 — Ceded insurance reserves, current 31.1 25.7 Interest rate swap locks 29.1 — Accrued professional fees and legal settlement reserves 9.5 13.1 Other 75.4 86.6 Total $ 813.4 $ 728.6 (1) Refer to Note 1, Basis of Presentation , for discussion regarding our adoption of ASC 842. Other Long-Term Liabilities A summary of other long-term liabilities as of September 30, 2019 and December 31, 2018 follows: 2019 2018 Operating right-of-use lease liabilities (1) $ 226.0 $ — Deferred compensation plan liability 112.9 96.0 Ceded insurance reserves 79.6 68.0 Contingent purchase price and acquisition holdbacks 68.6 73.9 Other derivative liabilities 24.2 — Withdrawal liability - multiemployer pension funds 12.1 12.2 Legal settlement reserves 10.0 10.0 Pension and other post-retirement liabilities 6.1 6.0 Interest rate swap locks 1.6 — Other 50.4 55.3 Total $ 591.5 $ 321.4 (1) Refer to Note 1, Basis of Presentation , for discussion regarding our adoption of ASC 842. |
Landfill and Environmental Cost
Landfill and Environmental Costs | 9 Months Ended |
Sep. 30, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Landfill and Environmental Costs | LANDFILL AND ENVIRONMENTAL COSTS As of September 30, 2019, we owned or operated 190 active landfills with total available disposal capacity of approximately 5.0 billion in-place cubic yards. Additionally, we have post-closure responsibility for 129 closed landfills. Accrued Landfill and Environmental Costs A summary of accrued landfill and environmental liabilities as of September 30, 2019 and December 31, 2018 follows: 2019 2018 Landfill final capping, closure and post-closure liabilities $ 1,339.6 $ 1,292.0 Environmental remediation 515.6 540.2 Total accrued landfill and environmental costs 1,855.2 1,832.2 Less: current portion (153.2) (130.6) Long-term portion $ 1,702.0 $ 1,701.6 Final Capping, Closure and Post-Closure Costs The following table summarizes the activity in our asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure, for the nine months ended September 30, 2019 and 2018: 2019 2018 Asset retirement obligation liabilities, beginning of year $ 1,292.0 $ 1,257.7 Non-cash additions 32.9 33.0 Acquisitions, net of divestitures and other adjustments 0.3 (0.6) Asset retirement obligation adjustments 0.7 (18.4) Payments (47.7) (42.5) Accretion expense 61.4 60.7 Asset retirement obligation liabilities, end of period 1,339.6 1,289.9 Less: current portion (80.9) (94.2) Long-term portion $ 1,258.7 $ 1,195.7 We review annually, in the fourth quarter, and update as necessary, our estimates of asset retirement obligation liabilities. However, if there are significant changes in the facts and circumstances related to a site during the year, we will update our assumptions prospectively in the period that we know all the relevant facts and circumstances and make adjustments as appropriate. The fair value of assets that are legally restricted for purposes of settling final capping, closure and post-closure liabilities was $30.4 million and $29.5 million as of September 30, 2019 and December 31, 2018, respectively, and is included in restricted cash and marketable securities in our consolidated balance sheets. Landfill Operating Expenses In the normal course of business, we incur various operating costs associated with environmental compliance. These costs include, among other things, leachate treatment and disposal, methane gas and groundwater monitoring, systems maintenance, interim cap maintenance, costs associated with the application of daily cover materials, and the legal and administrative costs of ongoing environmental compliance. These costs are expensed as cost of operations in the periods in which they are incurred. Environmental Remediation Liabilities We accrue for remediation costs when they become probable and can be reasonably estimated. There can sometimes be a range of reasonable estimates of the costs associated with remediation of a site. In these cases, we use the amount within the range that constitutes our best estimate. If no amount within the range appears to be a better estimate than any other, we use the amount that is at the low end of the range. It is reasonably possible that we will need to adjust the liabilities recorded for remediation to reflect the effects of new or additional information, to the extent such information impacts the costs, timing or duration of the required actions. If we used the reasonably possible high ends of our ranges, our aggregate potential remediation liability as of September 30, 2019 would be approximately $369 million higher than the amount recorded. Future changes in our estimates of the cost, timing or duration of the required actions could have a material adverse effect on our consolidated financial position, results of operations and cash flows. The following table summarizes the activity in our environmental remediation liabilities for the nine months ended September 30, 2019 and 2018: 2019 2018 Environmental remediation liabilities, beginning of year $ 540.2 $ 564.0 Net adjustments charged to expense (9.6) 3.3 Payments (29.4) (30.2) Accretion expense (non-cash interest expense) 14.3 15.2 Acquisitions, net of divestitures and other adjustments 0.1 — Environmental remediation liabilities, end of period 515.6 552.3 Less: current portion (72.3) (74.1) Long-term portion $ 443.3 $ 478.2 Bridgeton Landfill. During the nine months ended September 30, 2019, we paid $12.0 million related to management and monitoring of the remediation area for our closed Bridgeton Landfill in Missouri. We continue to work with state and federal regulatory agencies on our remediation efforts. From time to time, this may require us to modify our future operating timeline and procedures, which could result in changes to our expected liability. As of September 30, 2019, the remediation liability recorded for this site was $149.1 million, of which approximately $2 million is expected to be paid during the remainder of 2019. We believe the remaining reasonably possible high end of our range would be approximately $171 million higher than the amount recorded as of September 30, 2019. West Lake Landfill Superfund Site . Our subsidiary Bridgeton Landfill, LLC is one of several currently designated Potentially Responsible Parties for the West Lake Landfill Superfund site (West Lake) in Missouri. On September 27, 2018, the U.S. Environmental Protection Agency (EPA) issued a Record of Decision Amendment for West Lake that includes a total undiscounted cost estimate of $229 million over a four five |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The carrying value of our notes payable, finance leases and long-term debt as of September 30, 2019 and December 31, 2018 is listed in the following table, and is adjusted for the fair value of interest rate swaps, unamortized discounts, deferred issuance costs and the unamortized portion of adjustments to fair value recorded in purchase accounting. Original issue discounts and adjustments to fair value recorded in purchase accounting are amortized to interest expense over the term of the applicable instrument using the effective interest method. September 30, 2019 December 31, 2018 Maturity Interest Rate Principal Adjustments Carrying Value Principal Adjustments Carrying Value Credit facilities: Uncommitted Credit Facility Variable $ 12.2 $ — $ 12.2 $ 33.4 $ — $ 33.4 June 2023 Variable 170.0 — 170.0 159.0 — 159.0 Senior notes: September 2019 5.500 — — — 650.0 (0.9) 649.1 March 2020 5.000 850.0 (0.4) 849.6 850.0 (1.0) 849.0 November 2021 5.250 600.0 (0.8) 599.2 600.0 (1.2) 598.8 June 2022 3.550 850.0 (2.9) 847.1 850.0 (3.6) 846.4 May 2023 4.750 550.0 4.9 554.9 550.0 (5.5) 544.5 August 2024 2.500 900.0 (8.0) 892.0 — — — March 2025 3.200 500.0 (3.7) 496.3 500.0 (4.3) 495.7 July 2026 2.900 500.0 (4.0) 496.0 500.0 (4.4) 495.6 November 2027 3.375 650.0 (5.4) 644.6 650.0 (5.9) 644.1 May 2028 3.950 800.0 (16.1) 783.9 800.0 (17.3) 782.7 March 2035 6.086 181.9 (14.1) 167.8 181.9 (14.4) 167.5 March 2040 6.200 399.9 (3.7) 396.2 399.9 (3.8) 396.1 May 2041 5.700 385.7 (5.3) 380.4 385.7 (5.3) 380.4 Debentures: May 2021 9.250 35.3 (0.5) 34.8 35.3 (0.7) 34.6 September 2035 7.400 148.1 (33.2) 114.9 148.1 (33.8) 114.3 Tax-exempt: 2020 - 2049 1.300 - 1.875 1,072.4 (6.1) 1,066.3 1,042.4 (5.6) 1,036.8 Finance leases: 2019 - 2049 3.070 - 12.203 112.4 — 112.4 109.5 — 109.5 Total Debt $ 8,717.9 $ (99.3) 8,618.6 $ 8,445.2 $ (107.7) 8,337.5 Less: current portion (912.8) (690.7) Long-term portion $ 7,705.8 $ 7,646.8 Credit Facilities In June 2018, we entered into a $2.25 billion unsecured revolving credit facility (the Credit Facility), which replaced our $1.0 billion and $1.25 billion unsecured credit facilities that would have matured in May 2021 and June 2019, respectively. The Credit Facility matures in June 2023. We may request two one The Credit Facility is subject to facility fees based on applicable rates defined in the Credit Facility agreement and the aggregate commitment, regardless of usage. Availability under our Credit Facility totaled $1,710.6 million and $1,694.1 million as of September 30, 2019 and December 31, 2018, respectively. The Credit Facility can be used for working capital, capital expenditures, acquisitions, letters of credit and other general corporate purposes. The Credit Facility agreement requires us to comply with financial and other covenants. We may pay dividends and repurchase common stock if we are in compliance with these covenants. As of September 30, 2019 and December 31, 2018, we had $170.0 million and $159.0 million of borrowings under our Credit Facility, respectively. We had $352.0 million and $379.6 million of letters of credit outstanding under our Credit Facility as of September 30, 2019 and December 31, 2018, respectively. We also have an Uncommitted Credit Facility, which bears interest at LIBOR, plus an applicable margin and is subject to facility fees defined in the agreement, regardless of usage. We can use borrowings under the Uncommitted Credit Facility for working capital and other general corporate purposes. The agreement governing our Uncommitted Credit Facility requires us to comply with certain covenants. The Uncommitted Credit Facility may be terminated by either party at any time. We had $12.2 million of borrowings and $33.4 million of borrowings outstanding under our Uncommitted Credit Facility as of September 30, 2019 and December 31, 2018, respectively. Senior Notes and Debentures In August 2019, we issued $900.0 million of 2.500% senior notes due 2024 (the 2.500% Notes). We used the net proceeds from the 2.500% Notes to repay $650.0 million of 5.500% senior notes that matured in September 2019. Any remaining proceeds were used to repay amounts outstanding under our unsecured credit facilities as well as for general corporate purposes. Contemporaneously with this offering, we amended interest rate lock agreements with a notional value of $375.0 million and dedesignated the hedging relationship. There was no ineffectiveness recognized in the termination of these cash flow hedges. In addition, we entered into an offsetting interest rate swap to manage exposure to fluctuations in interest rates associated with the amended agreements. For further detail regarding the effect of our derivative contracts on interest expense, refer to Note 12, Financial Instruments , to our unaudited consolidated financial statements in Item 1 of Part I of this Quarterly Report on Form 10-Q. In 2018, we issued $800.0 million of 3.950% senior notes due 2028 (the 3.950% Notes). We used the net proceeds from the 3.950% Notes to repay $700.0 million of 3.800% senior notes that matured in May 2018, and any remaining proceeds were used for general corporate purposes. In connection with this offering, we terminated interest rate lock agreements with a notional value of $600.0 million, resulting in net proceeds of $31.1 million. There was no ineffectiveness recognized in the termination of these cash flow hedges. Our senior notes and debentures are general unsecured obligations. Interest is payable semi-annually. Tax-Exempt Financings During the second quarter of 2019, we refinanced $35.0 million of tax-exempt financings and issued $30.0 million of new tax-exempt financings. As of September 30, 2019, we had $1,066.3 million of certain variable rate tax-exempt financings outstanding with maturities ranging from 2020 to 2049. As of December 31, 2018, we had $1,036.8 million of certain variable rate tax-exempt financings outstanding with maturities ranging from 2019 to 2044. Approximately 100% of our tax-exempt financings are remarketed quarterly by remarketing agents to effectively maintain a variable yield. The holders of the bonds can put them back to the remarketing agents at the end of each interest period. To date, the remarketing agents have been able to remarket all of our variable rate unsecured tax-exempt bonds. Finance Leases We had finance lease liabilities of $112.4 million and $109.5 million as of September 30, 2019 and December 31, 2018, respectively, with maturities ranging from 2019 to 2049 and 2019 to 2046, respectively. Interest Rate Swap and Lock Agreements Our ability to obtain financing through the capital markets is a key component of our financial strategy. Historically, we have managed risk associated with executing this strategy, particularly as it relates to fluctuations in interest rates, by using a combination of fixed and floating rate debt. From time to time, we also have entered into interest rate swap and lock agreements to manage risk associated with interest rates, either to effectively convert specific fixed rate debt to a floating rate (fair value hedges), or to lock interest rates in anticipation of future debt issuances (cash flow hedges). Fair Value Hedges During the second half of 2013, we entered into various interest rate swap agreements relative to our 4.750% fixed rate senior notes due in May 2023. The goal was to reduce overall borrowing costs and rebalance our debt portfolio's ratio of fixed to floating interest rates. As of September 30, 2019 and December 31, 2018, these swap agreements had a total notional value of $300.0 million and mature in May 2023, which is identical to the maturity of the hedged senior notes. We pay interest at floating rates based on changes in LIBOR and receive interest at a fixed rate of 4.750%. These transactions were designated as fair value hedges because the swaps hedge against the changes in fair value of the fixed rate senior notes resulting from changes in interest rates. As of September 30, 2019 and December 31, 2018, the interest rate swap agreements are reflected at their fair value of $13.1 million and $2.5 million, respectively, and are included in other assets in our consolidated balance sheet. To the extent they are effective, these interest rate swap agreements are included as an adjustment to long-term debt in our consolidated balance sheets. For the three months ended September 30, 2019 and 2018, we recognized a loss of $1.1 million and a gain of $1.9 million, respectively, on the change in fair value of the hedged senior notes attributable to changes in the benchmark interest rate, with an offsetting gain of $1.4 million and an offsetting loss of $2.0 million, respectively, on the related interest rate swaps. For the nine months ended September 30, 2019 and 2018, we recognized a loss of $10.0 million and a gain of $11.1 million, respectively, on the change in fair value of the hedged senior notes attributable to changes in the benchmark interest rate, with an offsetting gain of $10.5 million and an offsetting loss of $11.5 million, respectively, on the related interest rate swaps. The difference of these fair value changes for the nine months ended September 30, 2018 was recorded directly in earnings as other income, net. In accordance with our adoption of ASU 2017-12, the difference of these fair value changes for the nine months ended September 30, 2019 was recorded directly in earnings as an adjustment to interest expense in our consolidated statement of income. For further detail regarding the effect of our fair value hedging on interest expense, refer to Note 12, Financial Instruments , to our unaudited consolidated financial statements in Item 1 of Part I of this Quarterly Report on Form 10-Q. Cash Flow Hedges As of September 30, 2019 and December 31, 2018, our interest rate lock agreements had an aggregate notional value of $575.0 million and $725.0 million, respectively, with fixed interest rates ranging from 1.330% to 3.000% and 1.900% to 3.250%, respectively. We entered into these transactions to manage exposure to fluctuations in interest rates in anticipation of planned future issuances of senior notes in 2019 through 2021. Upon the expected issuance of senior notes, we will terminate the interest rate locks and settle with our counterparties. These transactions were accounted for as cash flow hedges. The fair value of our interest rate locks was determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy). The aggregate fair values of the outstanding interest rate locks as of September 30, 2019 were assets of $1.3 million, which were recorded in prepaid expenses and other current assets in our consolidated balance sheet and liabilities of $30.7 million, which were recorded in other accrued liabilities and other long-term liabilities in our consolidated balance sheet. As of December 31, 2018, the aggregate fair values of the outstanding interest rate locks were assets of $10.3 million and were recorded in other assets in our consolidated balance sheet. Total unrealized (loss) gain recognized in other comprehensive income for interest rate locks was $(11.9) million and $4.2 million for the three months ended September 30, 2019 and 2018, respectively. Total unrealized (loss) gain recognized in other comprehensive income for interest rate locks was $(43.0) million and $33.1 million for the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019 and December 31, 2018, our previously terminated interest rate locks were recorded as components of accumulated other comprehensive income (loss), net of tax of $(3.5) million and $11.2 million, respectively. The amortization of the terminated interest rate locks is recorded as an adjustment to interest expense over the life of the issued debt using the effective interest method. We expect to amortize approximately $1.9 million of net interest expense, net of tax, over the next 12 months as a yield adjustment of our senior notes. For detail regarding the effect of our cash flow hedging on interest expense, refer to Note 12, Financial Instruments , to our unaudited consolidated financial statements in Item 1 of Part I of this Quarterly Report on Form 10-Q. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES We lease property and equipment in the ordinary course of business under various lease agreements. The most significant lease obligations are for real property and equipment specific to our industry, including property operated as a landfill or transfer station and operating equipment. Our leases have varying terms. Some may include renewal or purchase options, escalation clauses, restrictions, penalties or other obligations that we consider in determining minimum lease payments. Our lease terms include options to renew the lease when it is reasonably certain that we will exercise the option. Certain leases require payments that are variable in nature based on volume measurements, e.g. a fixed rate per ton at our landfills. In addition, certain rental payments are adjusted annually based on changes in an underlying base index such as a consumer price index. Variable lease payments are recognized in our consolidated statement of income in the period incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We generally account for lease components separately from non-lease components. Leases are classified as either operating leases or finance leases, as appropriate. Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheet. Operating Leases Many of our leases are operating leases. Operating lease classification generally can be attributed to either (1) relatively low fixed minimum lease payments (including, for example, real property lease payments that are not fixed and vary based on the volume of waste we receive or process), or (2) minimum lease terms that are shorter than the asset's economic useful life. We expect that, in the ordinary course of business, our operating leases will be renewed, replaced by other leases, or replaced with capital expenditures. We recognize rent expense for these leases on a straight-line basis over the lease term. We recognize a right-of-use liability and right-of-use asset for leases classified as operating leases in our consolidated balance sheet upon lease commencement. The right-of-use liability represents the present value of the remaining lease payments. An implicit rate is often not readily available for these leases. As such, we use our incremental borrowing rate at the commencement date to determine the present value of the lease payments. Our incremental borrowing rate represents the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term in a similar economic environment. In addition, we recognize a corresponding right-of-use asset, which represents our right to use an underlying asset for the lease term. The right-of-use asset is adjusted for certain favorable or unfavorable leases recognized through acquisition, prepaid or accrued rent, asset impairments and lease incentives, including but not limited to cash incentives, rent abatement or leasehold improvements paid by the lessor. Finance Leases We capitalize assets acquired under finance leases at lease commencement and amortize them to depreciation expense over the lesser of the useful life of the asset or the lease term on either a straight-line or a units-of-consumption basis, depending on the asset leased. We record the present value of the related lease payments as a debt obligation. Our finance lease liability relates primarily to certain long-term landfill operating agreements that require minimum lease payments with offsetting finance lease assets recorded as part of the landfill development costs. A summary of the lease classification on our consolidated balance sheet as of September 30, 2019 follows: 2019 Assets Operating right-of-use lease assets Other assets $ 243.1 Finance lease assets Property and equipment, net 128.2 Total lease assets $ 371.3 Liabilities Current Operating Other accrued liabilities $ 36.6 Finance Notes payable and current maturities of long-term debt 7.0 Long-term Operating Other long-term liabilities 226.0 Finance Long-term debt, net of current maturities 105.4 Total lease liabilities $ 375.0 A summary of the lease cost reflected in our consolidated statement of income for the three and nine months ended September 30, 2019 follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost Fixed lease cost Cost of operations $ 10.7 $ 31.0 Short-term lease cost Cost of operations 9.4 28.4 Variable lease cost Cost of operations 4.6 13.3 Finance lease cost Amortization of leased assets Depreciation amortization, and depletion 1.4 4.1 Interest on lease liabilities Interest expense 1.9 5.6 Variable lease cost Interest expense 1.6 4.3 Total lease cost $ 29.6 $ 86.7 As of September 30, 2019, aggregate principal payments for operating and finance leases follows: Operating Leases Finance Leases Total 2019 (remaining) $ 12.7 $ 3.7 $ 16.4 2020 42.8 15.6 58.4 2021 39.5 14.0 53.5 2022 33.3 13.4 46.7 2023 31.7 39.2 70.9 Thereafter 157.0 129.0 286.0 Total lease payments 317.0 214.9 531.9 Less: interest (54.4) (102.5) (156.9) Present value of lease liabilities $ 262.6 $ 112.4 $ 375.0 A summary of the weighted-average remaining lease term and weighted-average discount rate as of September 30, 2019 follows: September 30, 2019 Weighted-average remaining lease term (years) Operating leases 9.0 Finance leases 14.7 Weighted-average discount rate Operating leases 3.9 % Finance leases 7.0 % Supplemental cash flow and other non-cash information for the three and nine months ended September 30, 2019 follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 25.0 $ 73.3 Operating cash flows from finance leases $ 3.5 $ 9.9 Financing cash flows from finance leases $ 1.6 $ 4.4 Leased assets obtained in exchange for new finance lease liabilities $ 6.3 $ 7.1 Leased assets obtained in exchange for new operating lease liabilities $ 26.6 $ 36.0 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective tax rate, exclusive of non-controlling interests, for the three and nine months ended September 30, 2019 was 19.3% and 22.5%, respectively. Our effective tax rate, exclusive of non-controlling interests, for the three and nine months ended September 30, 2018 was 22.7% and 23.6%, respectively. Our effective tax rate, for the three and nine months ended September 30, 2019, was favorably affected by settlements of various state matters and the realization of additional federal and state benefits as well as adjustments to deferred taxes due to the completion of our 2018 tax returns. Cash paid for income taxes was a net refund of $4.3 million and a net payment of $43.5 million for the nine months ended September 30, 2019 and 2018, respectively. Cash taxes have been favorably impacted from the receipt of funds from amended returns filed during 2018. We have deferred tax assets related to state net operating loss carryforwards. We provide a partial valuation allowance due to uncertainty surrounding the future utilization of these carryforwards in the taxing jurisdictions where the loss carryforwards exist. When determining the need for a valuation allowance, we consider all positive and negative evidence, including recent financial results, scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies. As a result of changes in U.S. tax law and our ongoing efforts to evaluate, streamline and maximize the efficiency of our tax footprint, we could adjust our valuation allowance in a future period if there is sufficient evidence to support a conclusion that it is more certain than not that a portion of the state net operating loss carryforwards, on which we currently provide a valuation allowance, would be realized. Future changes in our valuation allowance could have a material effect on our results of operations in the period recorded. The realization of our deferred tax asset for state loss carryforwards ultimately depends upon the existence of sufficient taxable income in the appropriate state taxing jurisdictions in future periods. The weight given to the positive and negative evidence is commensurate with the extent such evidence can be objectively verified. We continue to regularly monitor both positive and negative evidence in determining the ongoing need for a valuation allowance. As of September 30, 2019, the valuation allowance associated with our state loss carryforwards was approximately $68 million. We are subject to income tax in the United States and Puerto Rico, as well as in multiple state jurisdictions. Our compliance with income tax rules and regulations is periodically audited by taxing authorities. These authorities may challenge the positions taken in our tax filings. We are currently under examination or administrative review by the Internal Revenue Service, state and local taxing authorities and Puerto Rico for various tax years. We believe that our recorded liabilities for uncertain tax positions are adequate. However, a significant assessment against us in excess of the liabilities recorded could have a material adverse effect on our consolidated financial position, results of operations and cash flows. As of September 30, 2019, we are unable to estimate the resolution of our gross unrecognized benefits over the next 12 months. We recognize interest and penalties as incurred within the provision for income taxes in the consolidated statement of income. As of September 30, 2019, we accrued a liability for penalties of $0.3 million and a liability for interest (including interest on penalties) of $11.0 million related to our uncertain tax positions. |
Stock Repurchases, Dividends an
Stock Repurchases, Dividends and Earnings per Share | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stock Repurchases, Dividends and Earnings per Share | STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE Available Shares We currently have approximately 12.8 million shares of common stock reserved for future grants under the Republic Services, Inc. Amended and Restated 2007 Stock Incentive Plan. Stock Repurchases Stock repurchase activity during the three and nine months ended September 30, 2019 and 2018 follows (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Number of shares repurchased 1.7 1.4 4.3 8.5 Amount paid $ 151.3 $ 100.9 $ 353.8 $ 574.9 Weighted average cost per share $ 86.87 $ 71.83 $ 81.63 $ 67.84 As of September 30, 2019, there were less than 0.1 million repurchased shares pending settlement, resulting in an associated $0.1 million of share repurchases unpaid and included within other accrued liabilities. As of September 30, 2018, there were no repurchased shares pending settlement. In October 2017, our Board of Directors added $2.0 billion to the existing share repurchase authorization that now extends through December 31, 2020. Share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws. While the Board of Directors has approved the program, the timing of any purchases, the prices and the number of shares of common stock to be purchased will be determined by our management, at its discretion, and will depend upon market conditions and other factors. The share repurchase program may be extended, suspended or discontinued at any time. As of September 30, 2019, the remaining authorized purchase capacity under our October 2017 repurchase program was $750.3 million. Dividends In July 2019, our Board of Directors approved a quarterly dividend of $0.405 per share. Cash dividends declared were $370.2 million for the nine months ended September 30, 2019. As of September 30, 2019, we recorded a quarterly dividend payable of $129.3 million to shareholders of record at the close of business on October 1, 2019. Earnings per Share Basic earnings per share is computed by dividing net income attributable to Republic Services, Inc. by the weighted average number of common shares (including vested but unissued RSUs and PSUs) outstanding during the period. Diluted earnings per share is based on the combined weighted average number of common shares and common share equivalents outstanding, which include, where appropriate, the assumed exercise of employee stock options, unvested RSUs and unvested PSUs at the expected attainment levels. We use the treasury stock method in computing diluted earnings per share. Earnings per share for the three and nine months ended September 30, 2019 and 2018 are calculated as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Basic earnings per share: Net income attributable to Republic Services, Inc. $ 298,300 $ 263,400 $ 784,000 $ 736,000 Weighted average common shares outstanding 320,633 325,483 321,544 327,830 Basic earnings per share $ 0.93 $ 0.81 $ 2.44 $ 2.25 Diluted earnings per share: Net income attributable to Republic Services, Inc. $ 298,300 $ 263,400 $ 784,000 $ 736,000 Weighted average common shares outstanding 320,633 325,483 321,544 327,830 Effect of dilutive securities: Options to purchase common stock 368 673 437 799 Unvested RSU awards 276 263 248 241 Unvested PSU awards 433 525 415 456 Weighted average common and common equivalent shares outstanding 321,710 326,944 322,644 329,326 Diluted earnings per share $ 0.93 $ 0.81 $ 2.43 $ 2.23 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income by Component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT A summary of changes in accumulated other comprehensive income (AOCI), net of tax, by component, for the nine months ended September 30, 2019 follows: Cash Flow Hedges Defined Benefit Pension Items Total Balance as of December 31, 2018 $ 16.1 $ 14.7 $ 30.8 Other comprehensive loss before reclassifications (43.0) (0.8) (43.8) Amounts reclassified from accumulated other comprehensive income (0.9) — (0.9) Net current period other comprehensive loss (43.9) (0.8) (44.7) Adoption of accounting standard 5.4 — 5.4 Balance as of September 30, 2019 $ (22.4) $ 13.9 $ (8.5) A summary of reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 2019 and 2018 follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement where Net Income is Presented Gain (loss) on cash flow hedges: Recyclable commodity hedges $ — $ 0.4 $ — $ 0.7 Revenue Fuel hedges — 1.2 — 3.1 Cost of operations Terminated interest rate locks 0.7 — 1.2 (0.8) Interest expense Total before tax 0.7 1.6 1.2 3.0 Tax expense (0.2) (0.4) (0.3) (0.8) Total gain reclassified into earnings, net of tax $ 0.5 $ 1.2 $ 0.9 $ 2.2 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS The effect of our derivative instruments in fair value and cash flow hedging relationships on the consolidated statement of income for the three and nine months ended September 30, 2019 and 2018 follows (in millions): Classification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest Expense Interest Expense Interest Expense Interest Expense Total amounts of expense line items presented in the consolidated statement of income in which the effects of fair value or cash flow hedges are recorded $ (98.0) $ (96.0) $ (296.9) $ (287.3) The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships: Interest rate swaps: Net swap settlements $ 0.3 $ 0.3 $ 0.5 $ 1.7 Net periodic earnings (1) $ 0.3 $ (0.2) $ 0.5 $ (0.4) Gain (loss) on cash flow hedging relationships: Interest rate swap locks: Amount of gain (loss) reclassified from AOCI into income, net of tax $ 0.5 $ — $ 0.9 $ (0.6) (1) During 2018 (prior to adoption of ASU 2017-12), all net periodic earnings for fair value hedges were recorded to other income, net. To align the effect of the hedging relationship with the activity of the hedged item, beginning January 1, 2019, all net periodic earnings on fair value hedges are presented within interest expense in our consolidated statement of income. Fair Value Measurements In measuring fair values of assets and liabilities, we use valuation techniques that maximize the use of observable inputs (Level 1) and minimize the use of unobservable inputs (Level 3). We also use market data or assumptions that we believe market participants would use in pricing an asset or liability, including assumptions about risk when appropriate. The carrying value for certain of our financial instruments, including cash, accounts receivable, accounts payable and certain other accrued liabilities, approximates fair value because of their short-term nature. As of September 30, 2019 and December 31, 2018, our assets and liabilities that are measured at fair value on a recurring basis include the following: September 30, 2019 Fair Value Carrying Amount Total Quoted Significant Significant Assets: Money market mutual funds $ 42.9 $ 42.9 $ 42.9 $ — $ — Bonds - restricted cash and marketable securities and other assets 50.7 50.7 — 50.7 — Interest rate swaps - other assets 13.1 13.1 — 13.1 — Other derivative assets - other assets 4.9 4.9 — 4.9 — Interest rate locks - prepaid expenses and other current assets 1.3 1.3 — 1.3 — Total assets $ 112.9 $ 112.9 $ 42.9 $ 70.0 $ — Liabilities: Other derivative liabilities - other long-term liabilities $ 24.2 $ 24.2 $ — $ 24.2 $ — Interest rate locks - other accrued liabilities and other long-term liabilities 30.7 30.7 — 30.7 — Contingent consideration - other accrued liabilities and other long-term liabilities 72.5 72.5 — — 72.5 Total liabilities $ 127.4 $ 127.4 $ — $ 54.9 $ 72.5 December 31, 2018 Fair Value Carrying Amount Total Quoted Significant Significant Assets: Money market mutual funds $ 37.1 $ 37.1 $ 37.1 $ — $ — Bonds - restricted cash and marketable securities and other assets 47.8 47.8 — 47.8 — Interest rate swaps - other assets 2.5 2.5 — 2.5 — Interest rate locks - other assets 10.3 10.3 — 10.3 — Total assets $ 97.7 $ 97.7 $ 37.1 $ 60.6 $ — Liabilities: Contingent consideration - other long-term liabilities $ 71.4 $ 71.4 $ — $ — $ 71.4 Total liabilities $ 71.4 $ 71.4 $ — $ — $ 71.4 Total Debt As of September 30, 2019 and December 31, 2018, the carrying value of our total debt was $8.6 billion and $8.3 billion, respectively and the fair value of our total debt was $9.4 billion and $8.7 billion, respectively. The estimated fair value of our fixed rate senior notes and debentures is based on quoted market prices. The fair value of our remaining notes payable, tax-exempt financings and borrowings under our credit facilities approximates the carrying value because the interest rates are variable. The fair value estimates are based on Level 2 inputs of the fair value hierarchy as of September 30, 2019 and December 31, 2018. See Note 7, Debt , for further information related to our debt. Derivative Contracts Contemporaneously with the issuance of our 2.500% Notes in August 2019, we amended interest rate lock agreements with a notional value of $375.0 million, extending the mandatory maturity date from 2019 to 2024 and dedesignated them as cash flow hedges (the Extended Interest Rate Swaps). In addition, we entered into an offsetting interest rate swap to offset future exposures to fair value fluctuations of the Extended Interest Rate Swaps (the Offsetting Interest Rate Swaps). The fair value of these free standing derivatives was determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy). As of September 30, 2019, the fair value of the Extended Interest Rate Swaps was a liability of $24.2 million which was included in other long-term liabilities in our consolidated balance sheet, and the fair value of the Offsetting Interest Rate Swaps was an asset of $4.9 million and was included in other assets in our consolidated balance sheet. For the three and nine months ended September 30, 2019, we recognized a loss of $5.4 million on the change in fair value of the Extended Interest Rate Swaps, with an offsetting gain of $4.9 million on the Offsetting Interest Rate Swaps. The change in fair value was recorded directly in earnings as an adjustment to interest expense in our consolidated statement of income. Contingent Consideration In April 2015, we entered into a waste management contract with the County of Sonoma, California to operate the county's waste management facilities. As of September 30, 2019, the Sonoma contingent consideration represents the fair value of $65.9 million payable to the County of Sonoma based on the achievement of future annual tonnage targets through the expected remaining capacity of the landfill, which we estimate to be approximately 30 years. The potential undiscounted amount of all future contingent payments that we could be required to make under the waste management contract is estimated to be between approximately $79 million and $168 million. During the nine months ended September 30, 2019, the activity in the contingent consideration liability included accretion, which was offset by concession payments made in the ordinary course of business. There were no changes to the estimate of fair value. The contingent consideration liability is classified within Level 3 of the fair value hierarchy. In 2017, we recognized additional contingent consideration associated with the acquisition of a landfill. As of September 30, 2019, the contingent consideration of $4.1 million represents the fair value of amounts payable to the seller based on annual volume of tons disposed at the landfill. During the nine months ended September 30, 2019, the activity in the contingent consideration liability included accretion, which was offset by concession payments made in the ordinary course of business. There were no changes to the estimate of fair value. The contingent consideration liabilities are classified within Level 3 of the fair value hierarchy. In June 2019, we recognized additional contingent consideration associated with the acquisition of a collection business. As of September 30, 2019, the contingent consideration of $2.5 million represents the fair value of amounts payable to the seller based on annual volume of tons collected from certain customers of the business. The fair value of the contingent consideration was determined using probability assessments of the expected future payments over the estimated customer relationships, and applying a discount rate. The future payments are based on significant inputs that are not observable in the market. Key assumptions include annual collection volumes, which are subject to remeasurement at each reporting date. The contingent consideration liabilities are classified within Level 3 of the fair value hierarchy. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTINGOur senior management evaluates, oversees and manages the financial performance of our operations through two field groups, referred to as Group 1 and Group 2. Group 1 primarily consists of geographic areas located in the western United States, and Group 2 primarily consists of geographic areas located in the southeastern and mid-western United States, and the eastern seaboard of the United States. These two groups are presented below as our reportable segments, which provide integrated waste management services consisting of non-hazardous solid waste collection, transfer, recycling, disposal and environmental services. Summarized financial information concerning our reportable segments for the three and nine months ended September 30, 2019 and 2018 follows: Gross Revenue Intercompany Revenue Net Revenue Depreciation, Amortization, Depletion and Accretion Operating Income (Loss) Capital Expenditures Total Assets Three Months Ended September 30, 2019 Group 1 $ 1,543.2 $ (258.0) $ 1,285.2 $ 128.7 $ 316.0 $ 163.3 $ 11,290.3 Group 2 1,548.7 (225.9) 1,322.8 133.7 242.8 157.4 9,385.6 Corporate entities 43.9 (5.0) 38.9 25.4 (91.0) (1.1) 1,653.2 Total $ 3,135.8 $ (488.9) $ 2,646.9 $ 287.8 $ 467.8 $ 319.6 $ 22,329.1 Three Months Ended September 30, 2018 Group 1 $ 1,476.7 $ (247.2) $ 1,229.5 $ 123.9 $ 298.5 $ 147.4 $ 10,968.3 Group 2 1,517.7 (220.3) 1,297.4 129.0 231.4 137.0 8,970.0 Corporate entities 42.9 (4.1) 38.8 29.6 (89.6) (6.1) 1,463.8 Total $ 3,037.3 $ (471.6) $ 2,565.7 $ 282.5 $ 440.3 $ 278.3 $ 21,402.1 Gross Intercompany Net Depreciation, Operating Capital Total Assets Nine Months Ended September 30, 2019 Group 1 $ 4,502.8 $ (760.0) $ 3,742.8 $ 377.2 $ 913.1 $ 400.4 $ 11,290.3 Group 2 4,515.2 (651.2) 3,864.0 392.1 695.5 374.6 9,385.6 Corporate entities 129.1 (13.2) 115.9 75.2 (280.6) 133.3 1,653.2 Total $ 9,147.1 $ (1,424.4) $ 7,722.7 $ 844.5 $ 1,328.0 $ 908.3 $ 22,329.1 Nine Months Ended September 30, 2018 Group 1 $ 4,342.9 $ (740.3) $ 3,602.6 $ 370.9 $ 851.6 $ 397.8 $ 10,968.3 Group 2 4,433.3 (642.6) 3,790.7 382.3 666.3 321.2 8,970.0 Corporate entities 129.4 (11.8) 117.6 88.5 (265.3) 101.5 1,463.8 Total $ 8,905.6 $ (1,394.7) $ 7,510.9 $ 841.7 $ 1,252.6 $ 820.5 $ 21,402.1 Intercompany revenue reflects transactions within and between segments that generally are made on a basis intended to reflect the market value of such services. Capital expenditures for corporate entities primarily include vehicle inventory acquired but not yet assigned to operating locations and facilities. Corporate functions include legal, tax, treasury, information technology, risk management, human resources, closed landfills and other administrative functions. Subsequent Event |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Our operations primarily consist of providing collection, transfer and disposal of non-hazardous solid waste, recovering and recycling of certain materials, and environmental services. The following table disaggregates our revenue by service line for the three and nine months ended September 30, 2019 and 2018 (in millions of dollars and as a percentage of revenue): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Collection: Residential $ 574.4 21.7 % $ 563.2 22.0 % $ 1,701.8 22.0 % $ 1,672.4 22.3 % Small-container 799.1 30.2 772.5 30.1 2,369.0 30.7 2,286.0 30.4 Large-container 583.6 22.1 561.3 21.9 1,688.2 21.9 1,633.5 21.8 Other 11.7 0.4 11.0 0.4 34.2 0.4 32.6 0.4 Total collection 1,968.8 74.4 1,908.0 74.4 5,793.2 75.0 5,624.5 74.9 Transfer 347.1 322.9 985.8 932.5 Less: intercompany (192.2) (180.6) (556.8) (534.6) Transfer, net 154.9 5.8 142.3 5.5 429.0 5.6 397.9 5.3 Landfill 605.3 590.2 1,750.7 1,720.7 Less: intercompany (265.5) (258.8) (776.6) (767.5) Landfill, net 339.8 12.8 331.4 12.9 974.1 12.6 953.2 12.7 Environmental services 57.8 2.2 51.5 2.0 143.6 1.8 149.6 2.0 Other: Recycling processing and commodity sales 68.6 2.6 76.0 3.0 213.2 2.8 219.9 2.9 Other non-core 57.0 2.2 56.5 2.2 169.6 2.2 165.8 2.2 Total other 125.6 4.8 132.5 5.2 382.8 5.0 385.7 5.1 Total revenue $ 2,646.9 100.0 % $ 2,565.7 100.0 % $ 7,722.7 100.0 % $ 7,510.9 100.0 % Other non-core revenue consists primarily of revenue from National Accounts, which represents the portion of revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated waste handling services are subcontracted to local operators. Consequently, substantially all of this revenue is offset with related subcontract costs, which are recorded in cost of operations. The factors that impact the timing and amount of revenue recognized for each service line may vary based on the nature of the service performed. Generally, we recognize revenue at the time we perform a service. In the event that we bill for services in advance of performance, we recognize deferred revenue for the amount billed and subsequently recognize revenue at the time the service is provided. Substantially all of the deferred revenue recognized as of December 31, 2018 was recognized as revenue during the nine months ended September 30, 2019 when the service was performed. See Note 13, Segment Reporting , for additional information regarding revenue by reportable segment. Revenue Recognition Our service obligations of a long-term nature, e.g., solid waste collection service contracts, are satisfied over time, and we recognize revenue based on the value provided to the customer during the period. The amount billed to the customer is based on variable elements such as the number of residential homes or businesses for which collection services are provided, the volume of waste collected, transported and disposed, and the nature of the waste accepted. We do not disclose the value of unsatisfied performance obligations for these contracts as our right to consideration corresponds directly to the value provided to the customer for services completed to date and all future variable consideration is allocated to wholly unsatisfied performance obligations. Additionally, certain elements of our long-term customer contracts are unknown upon entering into the contract, including the amount that will be billed in accordance with annual price escalation clauses, our fuel recovery fee program and commodity prices. The amount to be billed is often tied to changes in an underlying base index such as a consumer price index or a fuel or commodity index, and revenue can be recognized once the index is established for the period. Deferred Contract Costs We incur certain upfront payments to acquire customer contracts which are recognized as other assets in our consolidated balance sheet, and we amortize the asset over the respective contract life. In addition, we recognize sales commissions that represent an incremental cost of the contract as other assets in our consolidated balance sheets, and we amortize the asset over the average life of the customer relationship. As of September 30, 2019 and December 31, 2018, we recognized $82.4 million and $89.2 million, respectively, of deferred contract costs and capitalized sales commissions. During the three and nine months ended September 30, 2019, we amortized $2.9 million and $8.9 million of capitalized sales commissions to selling, general and administrative expenses and $1.6 million and $4.6 million of other deferred contract costs as a reduction of revenue, respectively. During the three and nine months ended September 30, 2018, we amortized $2.8 million and $8.3 million of capitalized sales commissions to selling, general and administrative expenses and $1.6 million and $4.4 million of other deferred contract costs as a reduction of revenue, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings We are subject to extensive and evolving laws and regulations and have implemented safeguards to respond to regulatory requirements. In the normal course of our business, we become involved in legal proceedings. Some may result in fines, penalties or judgments against us, or settlements, which may impact earnings and cash flows for a particular period. Although we cannot predict the ultimate outcome of any legal matter with certainty, we do not believe the outcome of any of our pending legal proceedings will have a material adverse impact on our consolidated financial position, results of operations or cash flows. As used herein, the term legal proceedings refers to litigation and similar claims against us and our subsidiaries, excluding: (1) ordinary course accidents, general commercial liability and workers' compensation claims, which are covered by insurance programs, subject to customary deductibles, and which, together with insured employee health care costs, are discussed in Note 5, Other Liabilities; and (2) environmental remediation liabilities, which are discussed in Note 6, Landfill and Environmental Costs. We accrue for legal proceedings when losses become probable and reasonably estimable. We have recorded an aggregate accrual of approximately $19 million relating to our outstanding legal proceedings as of September 30, 2019. As of the end of each applicable reporting period, we review each of our legal proceedings and, where it is probable that a liability has been incurred, we accrue for all probable and reasonably estimable losses. Where we can reasonably estimate a range of losses we may incur regarding such a matter, we record an accrual for the amount within the range that constitutes our best estimate. If we can reasonably estimate a range but no amount within the range appears to be a better estimate than any other, we use the amount that is the low end of such range. If we had used the high ends of such ranges, our aggregate potential liability would be approximately $15 million higher than the amount recorded as of September 30, 2019. Multiemployer Pension Plans We contribute to 26 multiemployer pension plans under collective bargaining agreements covering union-represented employees. These plans generally provide retirement benefits to participants based on their service to contributing employers. We do not administer these plans. Under current law regarding multiemployer pension plans, a plan’s termination, our voluntary withdrawal (which we consider from time to time) or the mass withdrawal of all contributing employers from any under-funded multiemployer pension plan (each, a Withdrawal Event) would require us to make payments to the plan for our proportionate share of the plan’s unfunded vested liabilities. During the course of operating our business, we incur Withdrawal Events regarding certain of our multiemployer pension plans. We accrue for such events when losses become probable and reasonably estimable. Restricted Cash and Marketable Securities Our restricted cash and marketable securities include, among other things, restricted cash and marketable securities held for capital expenditures under certain debt facilities, restricted cash pursuant to a holdback arrangement, restricted cash and marketable securities pledged to regulatory agencies and governmental entities as financial guarantees of our performance under certain collection, landfill and transfer station contracts and permits, and relating to our final capping, closure and post-closure obligations at our landfills, and restricted cash and marketable securities related to our insurance obligations. The following table summarizes our restricted cash and marketable securities: September 30, 2019 December 31, 2018 Capping, closure and post-closure obligations $ 30.4 $ 29.5 Insurance 90.9 78.6 Total restricted cash and marketable securities $ 121.3 $ 108.1 Restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Beginning-of-period and end-of-period cash, cash equivalents, restricted cash and restricted cash equivalents as presented in the statement of cash flows is reconciled as follows: September 30, 2019 December 31, 2018 September 30, 2018 December 31, 2017 Cash and cash equivalents $ 55.6 $ 70.5 $ 81.9 $ 83.3 Restricted cash and marketable securities 121.3 108.1 99.1 141.1 Less: restricted marketable securities (48.3) (45.3) (44.1) (45.3) Cash, cash equivalents, restricted cash and restricted cash equivalents $ 128.6 $ 133.3 $ 136.9 $ 179.1 Off-Balance Sheet Arrangements We have no off-balance sheet debt or similar obligations, other than short-term operating leases and financial assurances, which are not classified as debt. We have no transactions or obligations with related parties that are not disclosed, consolidated into or reflected in our reported financial position or results of operations. We have not guaranteed any third-party debt. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Management's Estimates and Assumptions | Management’s Estimates and Assumptions In preparing our financial statements, we make numerous estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. We must make these estimates and assumptions because certain information we use is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. In preparing our financial statements, the more critical and subjective areas that deal with the greatest amount of uncertainty relate to our accounting for our long-lived assets, including recoverability, development costs, and final capping, closure and post-closure costs; our valuation allowances for accounts receivable and deferred tax assets; our liabilities for potential litigation, claims and assessments; our liabilities for environmental remediation, multiemployer pension funds, employee benefit plans, deferred taxes, uncertain tax positions, and insurance reserves; and our estimates of the fair values of assets acquired and liabilities assumed in any acquisition. Each of these items is discussed in more detail in our description of our significant accounting policies in Note 2, Summary of Significant Accounting Policies , of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. Our actual results may differ significantly from our estimates. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Standards Adopted Effective January 1, 2019, we adopted the following accounting standard updates (ASUs) as issued by the Financial Accounting Standards Board (FASB): ASU Effective Date ASU 2016-02 Leases (Topic 842) January 1, 2019 ASU 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities January 1, 2019 ASU 2018-16 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting January 1, 2019 ASU 2018-02 Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income January 1, 2019 ASU 2018-07 Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting January 1, 2019 ASU 2018-15 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract January 1, 2019 Leases Effective January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) (ASC 842 or the new leasing standard) using the optional transition method prescribed by ASU 2018-11, Leases (Topic 842): Targeted Improvements . Upon adoption of the new leasing standard, we recognized a right-of-use asset and a right-of-use liability for leases classified as operating leases in our consolidated balance sheet. We applied the package of practical expedients to leases that commenced before the effective date whereby we elected to not reassess the following: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. To assist in quantifying the impact on our consolidated financial statements and supplementing our existing disclosures, we designed internal controls over the adoption and implemented a software solution to manage and account for our leases. As of January 1, 2019, we recognized a right-of-use liability for our operating leases of $256.3 million classified as other accrued liabilities and other long-term liabilities and a corresponding right-of-use asset of $236.2 million classified as other long-term assets in our consolidated balance sheet. The right-of-use asset reflects adjustments for certain favorable or unfavorable leases recognized through acquisitions, prepaid or accrued rent, asset impairments and lease incentives, including but not limited to cash incentives, rent abatement or leasehold improvements paid by the lessor. We did not recognize a cumulative effect adjustment to retained earnings as of January 1, 2019 as the standard did not have a material impact on our consolidated statement of income. In addition, the standard did not have a material impact on our accounting for finance (capital) leases. We assessed the disclosure requirements under the new leasing standard as part of our adoption. Refer to Note 4, Other Assets , Note 5, Other Liabilities , and Note 8, Leases , included herein for our enhanced supplemental disclosures. Derivatives and Hedging Effective January 1, 2019, we adopted the FASB's ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). We adopted the new guidance over income statement presentation and enhanced disclosures prospectively, and we adopted the guidance over the elimination of the separate measurement of ineffectiveness on a modified retrospective basis to existing hedging relationships as of the date of adoption. Prior to adoption, the net periodic earnings of our fair value hedges were presented within other income, net in our consolidated statement of income and are now presented within interest expense in our consolidated statement of income, i.e. the same line item as the effect of the hedged item. Our adoption of ASU 2017-12 did not have a material impact on our consolidated financial statements. Effective January 1, 2019, in conjunction with ASU 2017-12, we adopted the FASB's ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting (ASU 2018-16) on a prospective basis. LIBOR is expected to no longer be published by 2021. Consequently, the FASB added the OIS rate based on SOFR as an eligible benchmark interest rate in order to facilitate the LIBOR to SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. We are developing a plan to transition our interest rate swaps from LIBOR to SOFR. Our adoption of ASU 2018-16 did not have a material impact on our consolidated financial statements for the nine months ended September 30, 2019. Reclassifications of Certain Tax Effects from Accumulated Other Comprehensive Income Effective January 1, 2019, we adopted the FASB's ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02). The amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act (the Tax Act). The amendments only relate to the reclassification of the income tax effects of the Tax Act, and the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. Consequently, we reclassified $5.4 million of stranded tax effects from accumulated other comprehensive income to retained earnings. Improvements to Nonemployee Share-Based Payment Accounting Effective January 1, 2019, we adopted the FASB's ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07). ASU 2018-07 simplifies several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. We will apply the guidance prescribed by this update on a prospective basis. Our adoption of ASU 2018-07 did not have a material impact on our consolidated financial statements for the nine months ended September 30, 2019. Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Effective January 1, 2019, we early adopted the FASB's ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) No. 2018-15 Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15) using a prospective approach. In accordance with the standard, we present capitalized implementation costs incurred in a hosting arrangement that is a service contract as other assets on our consolidated balance sheet. This presentation is consistent with the presentation of the prepayment of fees for the hosting arrangement. Historically, implementation costs were presented as a component of property and equipment, net. As of January 1, 2019, we reclassified $28.7 million of capitalized implementation costs incurred in a hosting arrangement that is a service contract from property and equipment, net to other assets on our consolidated balance sheet. During the three and nine months ended September 30, 2019, we recognized $9.0 million and $25.3 million, respectively, of amortization expense for the prepayment of fees and capitalized implementation costs incurred in a hosting arrangement as a component of depreciation, amortization and depletion in our consolidated statement of income. During the nine months ended September 30, 2019, we recognized $9.0 million of payments for capitalized implementation costs in the same manner as payments made for fees associated with the hosting arrangement as a component of cash provided by operating activities in our consolidated statement of cash flows. Accounting Standards Issued but not yet Adopted Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 will replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We are currently assessing the effect this guidance may have on our consolidated financial statements. Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. ASU 2018-13 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We are currently assessing the effect this guidance may have on our consolidated financial statements. Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans (ASU 2018-14). ASU 2018-14 removes disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. Although narrow in scope, the amendments are considered an important part of the FASB’s efforts to improve the effectiveness of disclosures in the notes to financial statements. ASU 2018-14 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year. Early adoption is permitted for all entities. We are currently assessing the effect this guidance may have on our consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of new accounting pronouncements and changes in accounting principles | Effective January 1, 2019, we adopted the following accounting standard updates (ASUs) as issued by the Financial Accounting Standards Board (FASB): ASU Effective Date ASU 2016-02 Leases (Topic 842) January 1, 2019 ASU 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities January 1, 2019 ASU 2018-16 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting January 1, 2019 ASU 2018-02 Income Statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income January 1, 2019 ASU 2018-07 Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting January 1, 2019 ASU 2018-15 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract January 1, 2019 |
Business Acquisitions, Invest_2
Business Acquisitions, Investments and Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Aggregate purchase price and allocation of purchase price | The purchase price for these business acquisitions and the allocations of the purchase price follows: 2019 2018 Purchase price: Cash used in acquisitions, net of cash acquired $ 424.3 $ 111.1 Contingent consideration 2.5 — Holdbacks 16.0 10.9 Fair value, future minimum finance lease payments 5.8 — Total 448.6 122.0 Allocated as follows: Accounts receivable 18.3 1.9 Landfill airspace — 22.2 Property and equipment 143.0 17.5 Operating right-of-use lease assets 18.1 — Other assets 2.5 0.1 Inventory 1.1 0.2 Accounts payable (11.5) (0.3) Environmental remediation liabilities (0.1) — Closure and post-closure liabilities — (1.7) Operating right-of-use lease liabilities (18.4) — Other liabilities (2.3) (3.7) Fair value of tangible assets acquired and liabilities assumed 150.7 36.2 Excess purchase price to be allocated $ 297.9 $ 85.8 Excess purchase price allocated as follows: Other intangible assets $ 31.5 $ 14.8 Goodwill 266.4 71.0 Total allocated $ 297.9 $ 85.8 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the activity and balances in goodwill accounts by reporting segment | A summary of the activity and balances in goodwill accounts by reporting segment follows: Balance as of December 31, 2018 Acquisitions Divestitures Adjustments to Acquisitions Balance as of September 30, 2019 Group 1 $ 6,150.6 $ 85.9 $ — $ (1.2) $ 6,235.3 Group 2 5,249.5 180.5 (14.6) (0.2) 5,415.2 Total $ 11,400.1 $ 266.4 $ (14.6) $ (1.4) $ 11,650.5 |
Summary of the activity and balances by intangible asset type | A summary of the activity and balances by intangible asset type follows: Gross Intangible Assets Accumulated Amortization Other Intangible Assets, Net as of September 30, 2019 Balance as of December 31, 2018 Acquisitions Adjustments and Other (1) Balance as of September 30, 2019 Balance as of December 31, 2018 Additions Charged to Expense Adjustments and Other (1) Balance as of September 30, 2019 Customer relationships, franchise and other municipal agreements $ 692.4 $ 26.1 $ — $ 718.5 $ (607.2) $ (11.2) $ 0.2 $ (618.2) $ 100.3 Non-compete agreements 37.0 7.0 0.9 44.9 (31.5) (2.9) — (34.4) 10.5 Other intangible assets 64.3 — (6.1) 58.2 (48.5) (0.6) 4.2 (44.9) 13.3 Total $ 793.7 $ 33.1 $ (5.2) $ 821.6 $ (687.2) $ (14.7) $ 4.4 $ (697.5) $ 124.1 (1) In accordance with our adoption of the new leasing standard, we transferred $1.9 million of net favorable lease assets recognized through historical acquisitions to other assets as of January 1, 2019. |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of prepaid expenses and other current assets | A summary of prepaid expenses and other current assets as of September 30, 2019 and December 31, 2018 follows: 2019 2018 Prepaid expenses $ 88.0 $ 75.6 Inventories 55.3 53.1 Other non-trade receivables 39.0 34.4 Reinsurance receivable 31.4 25.7 Income tax receivable 17.6 187.7 Prepaid fees for cloud-based hosting arrangements, current 11.8 10.2 Other current assets 12.3 4.5 Total $ 255.4 $ 391.2 |
Summary of other assets | A summary of other assets as of September 30, 2019 and December 31, 2018 follows: 2019 2018 Right-of-use lease asset (1) $ 243.1 $ — Deferred compensation plan 110.4 100.0 Deferred contract costs and sales commissions 82.4 89.2 Reinsurance receivable 78.0 68.0 Investments 58.6 73.0 Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements (2) 33.6 — Amounts recoverable for capping, closure and post-closure obligations 32.8 30.5 Interest rate swaps and locks 13.1 12.8 Other derivative assets 4.9 — Deferred financing costs 3.3 4.2 Other 41.5 40.1 Total $ 701.7 $ 417.8 (1) Refer to Note 1, Basis of Presentation , for discussion regarding our adoption of ASC 842. (2) In accordance with our adoption of ASU 2018-15, capitalized implementation costs for cloud-based hosting arrangements are presented as other assets as of September 30, 2019. Similar costs are presented as a component of property and equipment, net as of December 31, 2018. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other accrued liabilities | A summary of other accrued liabilities as of September 30, 2019 and December 31, 2018 follows: 2019 2018 Accrued payroll and benefits $ 206.0 $ 205.1 Insurance reserves, current 156.7 152.9 Accrued fees and taxes 139.7 124.2 Accrued dividends 129.3 121.0 Operating right-of-use lease liabilities, current (1) 36.6 — Ceded insurance reserves, current 31.1 25.7 Interest rate swap locks 29.1 — Accrued professional fees and legal settlement reserves 9.5 13.1 Other 75.4 86.6 Total $ 813.4 $ 728.6 (1) Refer to Note 1, Basis of Presentation , for discussion regarding our adoption of ASC 842. |
Summary of other long-term liabilities | A summary of other long-term liabilities as of September 30, 2019 and December 31, 2018 follows: 2019 2018 Operating right-of-use lease liabilities (1) $ 226.0 $ — Deferred compensation plan liability 112.9 96.0 Ceded insurance reserves 79.6 68.0 Contingent purchase price and acquisition holdbacks 68.6 73.9 Other derivative liabilities 24.2 — Withdrawal liability - multiemployer pension funds 12.1 12.2 Legal settlement reserves 10.0 10.0 Pension and other post-retirement liabilities 6.1 6.0 Interest rate swap locks 1.6 — Other 50.4 55.3 Total $ 591.5 $ 321.4 (1) Refer to Note 1, Basis of Presentation , for discussion regarding our adoption of ASC 842. |
Landfill and Environmental Co_2
Landfill and Environmental Costs (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of accrued landfill and environmental costs | A summary of accrued landfill and environmental liabilities as of September 30, 2019 and December 31, 2018 follows: 2019 2018 Landfill final capping, closure and post-closure liabilities $ 1,339.6 $ 1,292.0 Environmental remediation 515.6 540.2 Total accrued landfill and environmental costs 1,855.2 1,832.2 Less: current portion (153.2) (130.6) Long-term portion $ 1,702.0 $ 1,701.6 |
Schedule of final capping, closure and post-closure costs | The following table summarizes the activity in our asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure, for the nine months ended September 30, 2019 and 2018: 2019 2018 Asset retirement obligation liabilities, beginning of year $ 1,292.0 $ 1,257.7 Non-cash additions 32.9 33.0 Acquisitions, net of divestitures and other adjustments 0.3 (0.6) Asset retirement obligation adjustments 0.7 (18.4) Payments (47.7) (42.5) Accretion expense 61.4 60.7 Asset retirement obligation liabilities, end of period 1,339.6 1,289.9 Less: current portion (80.9) (94.2) Long-term portion $ 1,258.7 $ 1,195.7 |
Summary of activity in environmental remediation liabilities | The following table summarizes the activity in our environmental remediation liabilities for the nine months ended September 30, 2019 and 2018: 2019 2018 Environmental remediation liabilities, beginning of year $ 540.2 $ 564.0 Net adjustments charged to expense (9.6) 3.3 Payments (29.4) (30.2) Accretion expense (non-cash interest expense) 14.3 15.2 Acquisitions, net of divestitures and other adjustments 0.1 — Environmental remediation liabilities, end of period 515.6 552.3 Less: current portion (72.3) (74.1) Long-term portion $ 443.3 $ 478.2 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Carrying value of notes payable, capital leases and long-term debt | The carrying value of our notes payable, finance leases and long-term debt as of September 30, 2019 and December 31, 2018 is listed in the following table, and is adjusted for the fair value of interest rate swaps, unamortized discounts, deferred issuance costs and the unamortized portion of adjustments to fair value recorded in purchase accounting. Original issue discounts and adjustments to fair value recorded in purchase accounting are amortized to interest expense over the term of the applicable instrument using the effective interest method. September 30, 2019 December 31, 2018 Maturity Interest Rate Principal Adjustments Carrying Value Principal Adjustments Carrying Value Credit facilities: Uncommitted Credit Facility Variable $ 12.2 $ — $ 12.2 $ 33.4 $ — $ 33.4 June 2023 Variable 170.0 — 170.0 159.0 — 159.0 Senior notes: September 2019 5.500 — — — 650.0 (0.9) 649.1 March 2020 5.000 850.0 (0.4) 849.6 850.0 (1.0) 849.0 November 2021 5.250 600.0 (0.8) 599.2 600.0 (1.2) 598.8 June 2022 3.550 850.0 (2.9) 847.1 850.0 (3.6) 846.4 May 2023 4.750 550.0 4.9 554.9 550.0 (5.5) 544.5 August 2024 2.500 900.0 (8.0) 892.0 — — — March 2025 3.200 500.0 (3.7) 496.3 500.0 (4.3) 495.7 July 2026 2.900 500.0 (4.0) 496.0 500.0 (4.4) 495.6 November 2027 3.375 650.0 (5.4) 644.6 650.0 (5.9) 644.1 May 2028 3.950 800.0 (16.1) 783.9 800.0 (17.3) 782.7 March 2035 6.086 181.9 (14.1) 167.8 181.9 (14.4) 167.5 March 2040 6.200 399.9 (3.7) 396.2 399.9 (3.8) 396.1 May 2041 5.700 385.7 (5.3) 380.4 385.7 (5.3) 380.4 Debentures: May 2021 9.250 35.3 (0.5) 34.8 35.3 (0.7) 34.6 September 2035 7.400 148.1 (33.2) 114.9 148.1 (33.8) 114.3 Tax-exempt: 2020 - 2049 1.300 - 1.875 1,072.4 (6.1) 1,066.3 1,042.4 (5.6) 1,036.8 Finance leases: 2019 - 2049 3.070 - 12.203 112.4 — 112.4 109.5 — 109.5 Total Debt $ 8,717.9 $ (99.3) 8,618.6 $ 8,445.2 $ (107.7) 8,337.5 Less: current portion (912.8) (690.7) Long-term portion $ 7,705.8 $ 7,646.8 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of lease related assets and liabilities | A summary of the lease classification on our consolidated balance sheet as of September 30, 2019 follows: 2019 Assets Operating right-of-use lease assets Other assets $ 243.1 Finance lease assets Property and equipment, net 128.2 Total lease assets $ 371.3 Liabilities Current Operating Other accrued liabilities $ 36.6 Finance Notes payable and current maturities of long-term debt 7.0 Long-term Operating Other long-term liabilities 226.0 Finance Long-term debt, net of current maturities 105.4 Total lease liabilities $ 375.0 |
Lease, cost | A summary of the lease cost reflected in our consolidated statement of income for the three and nine months ended September 30, 2019 follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost Fixed lease cost Cost of operations $ 10.7 $ 31.0 Short-term lease cost Cost of operations 9.4 28.4 Variable lease cost Cost of operations 4.6 13.3 Finance lease cost Amortization of leased assets Depreciation amortization, and depletion 1.4 4.1 Interest on lease liabilities Interest expense 1.9 5.6 Variable lease cost Interest expense 1.6 4.3 Total lease cost $ 29.6 $ 86.7 |
Lessee, operating lease, liability, maturity | As of September 30, 2019, aggregate principal payments for operating and finance leases follows: Operating Leases Finance Leases Total 2019 (remaining) $ 12.7 $ 3.7 $ 16.4 2020 42.8 15.6 58.4 2021 39.5 14.0 53.5 2022 33.3 13.4 46.7 2023 31.7 39.2 70.9 Thereafter 157.0 129.0 286.0 Total lease payments 317.0 214.9 531.9 Less: interest (54.4) (102.5) (156.9) Present value of lease liabilities $ 262.6 $ 112.4 $ 375.0 |
Finance lease, liability, maturity | As of September 30, 2019, aggregate principal payments for operating and finance leases follows: Operating Leases Finance Leases Total 2019 (remaining) $ 12.7 $ 3.7 $ 16.4 2020 42.8 15.6 58.4 2021 39.5 14.0 53.5 2022 33.3 13.4 46.7 2023 31.7 39.2 70.9 Thereafter 157.0 129.0 286.0 Total lease payments 317.0 214.9 531.9 Less: interest (54.4) (102.5) (156.9) Present value of lease liabilities $ 262.6 $ 112.4 $ 375.0 |
Schedule of weighted average remaining lease term and discount rate | A summary of the weighted-average remaining lease term and weighted-average discount rate as of September 30, 2019 follows: September 30, 2019 Weighted-average remaining lease term (years) Operating leases 9.0 Finance leases 14.7 Weighted-average discount rate Operating leases 3.9 % Finance leases 7.0 % |
Schedule of leases, supplemental cash flows | Supplemental cash flow and other non-cash information for the three and nine months ended September 30, 2019 follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 25.0 $ 73.3 Operating cash flows from finance leases $ 3.5 $ 9.9 Financing cash flows from finance leases $ 1.6 $ 4.4 Leased assets obtained in exchange for new finance lease liabilities $ 6.3 $ 7.1 Leased assets obtained in exchange for new operating lease liabilities $ 26.6 $ 36.0 |
Stock Repurchases, Dividends _2
Stock Repurchases, Dividends and Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stock repurchase activity | Stock repurchase activity during the three and nine months ended September 30, 2019 and 2018 follows (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Number of shares repurchased 1.7 1.4 4.3 8.5 Amount paid $ 151.3 $ 100.9 $ 353.8 $ 574.9 Weighted average cost per share $ 86.87 $ 71.83 $ 81.63 $ 67.84 |
Earnings per share | Earnings per share for the three and nine months ended September 30, 2019 and 2018 are calculated as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Basic earnings per share: Net income attributable to Republic Services, Inc. $ 298,300 $ 263,400 $ 784,000 $ 736,000 Weighted average common shares outstanding 320,633 325,483 321,544 327,830 Basic earnings per share $ 0.93 $ 0.81 $ 2.44 $ 2.25 Diluted earnings per share: Net income attributable to Republic Services, Inc. $ 298,300 $ 263,400 $ 784,000 $ 736,000 Weighted average common shares outstanding 320,633 325,483 321,544 327,830 Effect of dilutive securities: Options to purchase common stock 368 673 437 799 Unvested RSU awards 276 263 248 241 Unvested PSU awards 433 525 415 456 Weighted average common and common equivalent shares outstanding 321,710 326,944 322,644 329,326 Diluted earnings per share $ 0.93 $ 0.81 $ 2.43 $ 2.23 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income by Component (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Summary of changes in accumulated other comprehensive income by component | A summary of changes in accumulated other comprehensive income (AOCI), net of tax, by component, for the nine months ended September 30, 2019 follows: Cash Flow Hedges Defined Benefit Pension Items Total Balance as of December 31, 2018 $ 16.1 $ 14.7 $ 30.8 Other comprehensive loss before reclassifications (43.0) (0.8) (43.8) Amounts reclassified from accumulated other comprehensive income (0.9) — (0.9) Net current period other comprehensive loss (43.9) (0.8) (44.7) Adoption of accounting standard 5.4 — 5.4 Balance as of September 30, 2019 $ (22.4) $ 13.9 $ (8.5) |
Schedule of reclassifications out of accumulated other comprehensive income | A summary of reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 2019 and 2018 follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement where Net Income is Presented Gain (loss) on cash flow hedges: Recyclable commodity hedges $ — $ 0.4 $ — $ 0.7 Revenue Fuel hedges — 1.2 — 3.1 Cost of operations Terminated interest rate locks 0.7 — 1.2 (0.8) Interest expense Total before tax 0.7 1.6 1.2 3.0 Tax expense (0.2) (0.4) (0.3) (0.8) Total gain reclassified into earnings, net of tax $ 0.5 $ 1.2 $ 0.9 $ 2.2 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value hedging instruments | The effect of our derivative instruments in fair value and cash flow hedging relationships on the consolidated statement of income for the three and nine months ended September 30, 2019 and 2018 follows (in millions): Classification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest Expense Interest Expense Interest Expense Interest Expense Total amounts of expense line items presented in the consolidated statement of income in which the effects of fair value or cash flow hedges are recorded $ (98.0) $ (96.0) $ (296.9) $ (287.3) The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships: Interest rate swaps: Net swap settlements $ 0.3 $ 0.3 $ 0.5 $ 1.7 Net periodic earnings (1) $ 0.3 $ (0.2) $ 0.5 $ (0.4) Gain (loss) on cash flow hedging relationships: Interest rate swap locks: Amount of gain (loss) reclassified from AOCI into income, net of tax $ 0.5 $ — $ 0.9 $ (0.6) (1) During 2018 (prior to adoption of ASU 2017-12), all net periodic earnings for fair value hedges were recorded to other income, net. To align the effect of the hedging relationship with the activity of the hedged item, beginning January 1, 2019, all net periodic earnings on fair value hedges are presented within interest expense in our consolidated statement of income. |
Schedule of cash flow hedging instruments | The effect of our derivative instruments in fair value and cash flow hedging relationships on the consolidated statement of income for the three and nine months ended September 30, 2019 and 2018 follows (in millions): Classification and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest Expense Interest Expense Interest Expense Interest Expense Total amounts of expense line items presented in the consolidated statement of income in which the effects of fair value or cash flow hedges are recorded $ (98.0) $ (96.0) $ (296.9) $ (287.3) The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships: Interest rate swaps: Net swap settlements $ 0.3 $ 0.3 $ 0.5 $ 1.7 Net periodic earnings (1) $ 0.3 $ (0.2) $ 0.5 $ (0.4) Gain (loss) on cash flow hedging relationships: Interest rate swap locks: Amount of gain (loss) reclassified from AOCI into income, net of tax $ 0.5 $ — $ 0.9 $ (0.6) (1) During 2018 (prior to adoption of ASU 2017-12), all net periodic earnings for fair value hedges were recorded to other income, net. To align the effect of the hedging relationship with the activity of the hedged item, beginning January 1, 2019, all net periodic earnings on fair value hedges are presented within interest expense in our consolidated statement of income. |
Assets and liabilities measured at fair value on a recurring basis | As of September 30, 2019 and December 31, 2018, our assets and liabilities that are measured at fair value on a recurring basis include the following: September 30, 2019 Fair Value Carrying Amount Total Quoted Significant Significant Assets: Money market mutual funds $ 42.9 $ 42.9 $ 42.9 $ — $ — Bonds - restricted cash and marketable securities and other assets 50.7 50.7 — 50.7 — Interest rate swaps - other assets 13.1 13.1 — 13.1 — Other derivative assets - other assets 4.9 4.9 — 4.9 — Interest rate locks - prepaid expenses and other current assets 1.3 1.3 — 1.3 — Total assets $ 112.9 $ 112.9 $ 42.9 $ 70.0 $ — Liabilities: Other derivative liabilities - other long-term liabilities $ 24.2 $ 24.2 $ — $ 24.2 $ — Interest rate locks - other accrued liabilities and other long-term liabilities 30.7 30.7 — 30.7 — Contingent consideration - other accrued liabilities and other long-term liabilities 72.5 72.5 — — 72.5 Total liabilities $ 127.4 $ 127.4 $ — $ 54.9 $ 72.5 December 31, 2018 Fair Value Carrying Amount Total Quoted Significant Significant Assets: Money market mutual funds $ 37.1 $ 37.1 $ 37.1 $ — $ — Bonds - restricted cash and marketable securities and other assets 47.8 47.8 — 47.8 — Interest rate swaps - other assets 2.5 2.5 — 2.5 — Interest rate locks - other assets 10.3 10.3 — 10.3 — Total assets $ 97.7 $ 97.7 $ 37.1 $ 60.6 $ — Liabilities: Contingent consideration - other long-term liabilities $ 71.4 $ 71.4 $ — $ — $ 71.4 Total liabilities $ 71.4 $ 71.4 $ — $ — $ 71.4 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Summarized financial information concerning reportable segments | Summarized financial information concerning our reportable segments for the three and nine months ended September 30, 2019 and 2018 follows: Gross Revenue Intercompany Revenue Net Revenue Depreciation, Amortization, Depletion and Accretion Operating Income (Loss) Capital Expenditures Total Assets Three Months Ended September 30, 2019 Group 1 $ 1,543.2 $ (258.0) $ 1,285.2 $ 128.7 $ 316.0 $ 163.3 $ 11,290.3 Group 2 1,548.7 (225.9) 1,322.8 133.7 242.8 157.4 9,385.6 Corporate entities 43.9 (5.0) 38.9 25.4 (91.0) (1.1) 1,653.2 Total $ 3,135.8 $ (488.9) $ 2,646.9 $ 287.8 $ 467.8 $ 319.6 $ 22,329.1 Three Months Ended September 30, 2018 Group 1 $ 1,476.7 $ (247.2) $ 1,229.5 $ 123.9 $ 298.5 $ 147.4 $ 10,968.3 Group 2 1,517.7 (220.3) 1,297.4 129.0 231.4 137.0 8,970.0 Corporate entities 42.9 (4.1) 38.8 29.6 (89.6) (6.1) 1,463.8 Total $ 3,037.3 $ (471.6) $ 2,565.7 $ 282.5 $ 440.3 $ 278.3 $ 21,402.1 Gross Intercompany Net Depreciation, Operating Capital Total Assets Nine Months Ended September 30, 2019 Group 1 $ 4,502.8 $ (760.0) $ 3,742.8 $ 377.2 $ 913.1 $ 400.4 $ 11,290.3 Group 2 4,515.2 (651.2) 3,864.0 392.1 695.5 374.6 9,385.6 Corporate entities 129.1 (13.2) 115.9 75.2 (280.6) 133.3 1,653.2 Total $ 9,147.1 $ (1,424.4) $ 7,722.7 $ 844.5 $ 1,328.0 $ 908.3 $ 22,329.1 Nine Months Ended September 30, 2018 Group 1 $ 4,342.9 $ (740.3) $ 3,602.6 $ 370.9 $ 851.6 $ 397.8 $ 10,968.3 Group 2 4,433.3 (642.6) 3,790.7 382.3 666.3 321.2 8,970.0 Corporate entities 129.4 (11.8) 117.6 88.5 (265.3) 101.5 1,463.8 Total $ 8,905.6 $ (1,394.7) $ 7,510.9 $ 841.7 $ 1,252.6 $ 820.5 $ 21,402.1 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table disaggregates our revenue by service line for the three and nine months ended September 30, 2019 and 2018 (in millions of dollars and as a percentage of revenue): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Collection: Residential $ 574.4 21.7 % $ 563.2 22.0 % $ 1,701.8 22.0 % $ 1,672.4 22.3 % Small-container 799.1 30.2 772.5 30.1 2,369.0 30.7 2,286.0 30.4 Large-container 583.6 22.1 561.3 21.9 1,688.2 21.9 1,633.5 21.8 Other 11.7 0.4 11.0 0.4 34.2 0.4 32.6 0.4 Total collection 1,968.8 74.4 1,908.0 74.4 5,793.2 75.0 5,624.5 74.9 Transfer 347.1 322.9 985.8 932.5 Less: intercompany (192.2) (180.6) (556.8) (534.6) Transfer, net 154.9 5.8 142.3 5.5 429.0 5.6 397.9 5.3 Landfill 605.3 590.2 1,750.7 1,720.7 Less: intercompany (265.5) (258.8) (776.6) (767.5) Landfill, net 339.8 12.8 331.4 12.9 974.1 12.6 953.2 12.7 Environmental services 57.8 2.2 51.5 2.0 143.6 1.8 149.6 2.0 Other: Recycling processing and commodity sales 68.6 2.6 76.0 3.0 213.2 2.8 219.9 2.9 Other non-core 57.0 2.2 56.5 2.2 169.6 2.2 165.8 2.2 Total other 125.6 4.8 132.5 5.2 382.8 5.0 385.7 5.1 Total revenue $ 2,646.9 100.0 % $ 2,565.7 100.0 % $ 7,722.7 100.0 % $ 7,510.9 100.0 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of restricted cash and marketable securities | The following table summarizes our restricted cash and marketable securities: September 30, 2019 December 31, 2018 Capping, closure and post-closure obligations $ 30.4 $ 29.5 Insurance 90.9 78.6 Total restricted cash and marketable securities $ 121.3 $ 108.1 |
Schedule of cash equivalents, restricted cash and marketable securities | Beginning-of-period and end-of-period cash, cash equivalents, restricted cash and restricted cash equivalents as presented in the statement of cash flows is reconciled as follows: September 30, 2019 December 31, 2018 September 30, 2018 December 31, 2017 Cash and cash equivalents $ 55.6 $ 70.5 $ 81.9 $ 83.3 Restricted cash and marketable securities 121.3 108.1 99.1 141.1 Less: restricted marketable securities (48.3) (45.3) (44.1) (45.3) Cash, cash equivalents, restricted cash and restricted cash equivalents $ 128.6 $ 133.3 $ 136.9 $ 179.1 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | Jan. 01, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Number of reportable segments | segment | 2 | |||||
Operating lease liability | $ 262.6 | $ 262.6 | ||||
Operating right-of-use lease assets | 243.1 | 243.1 | $ 0 | |||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | $ 5.4 | 5.4 | ||||
Property and equipment, net | 8,257.6 | 8,257.6 | $ 8,020.1 | |||
Depreciation, amortization and depletion | 267.3 | $ 262.4 | 783.1 | $ 781 | ||
Cash provided by operating activities | 1,786.9 | $ 1,746.9 | ||||
Accounting Standards Update 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating lease liability | 256.3 | |||||
Operating right-of-use lease assets | 236.2 | |||||
Adjustments for New Accounting Principle, Early Adoption ASU 2018-15 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other assets | 28.7 | |||||
Property and equipment, net | $ (28.7) | |||||
Depreciation, amortization and depletion | $ 9 | 25.3 | ||||
Cash provided by operating activities | $ 9 |
Business Acquisitions, Invest_3
Business Acquisitions, Investments and Restructuring Charges - Acquisitions (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Purchase price: | |||
Cash used in acquisitions, net of cash acquired | $ 455.9 | $ 130.5 | |
Excess purchase price allocated as follows: | |||
Goodwill | 11,650.5 | $ 11,400.1 | |
Series of Individually Immaterial Business Acquisitions | |||
Purchase price: | |||
Cash used in acquisitions, net of cash acquired | 424.3 | 111.1 | |
Contingent consideration | 2.5 | 0 | |
Holdbacks | 16 | 10.9 | |
Fair value, future minimum lease payments | 5.8 | 0 | |
Total | 448.6 | 122 | |
Allocated as follows: | |||
Accounts receivable | 18.3 | 1.9 | |
Landfill airspace | 0 | 22.2 | |
Property and equipment | 143 | 17.5 | |
Operating right-of-use lease assets | 18.1 | ||
Other assets | 2.5 | 0.1 | |
Inventory | 1.1 | 0.2 | |
Accounts payable | (11.5) | (0.3) | |
Environmental remediation liabilities | (0.1) | 0 | |
Closure and post-closure liabilities | 0 | (1.7) | |
Operating right-of-use lease liabilities | (18.4) | ||
Other liabilities | (2.3) | (3.7) | |
Fair value of tangible assets acquired and liabilities assumed | 150.7 | 36.2 | |
Excess purchase price allocated as follows: | |||
Other intangible assets | 31.5 | 14.8 | |
Goodwill | 266.4 | 71 | |
Total allocated | $ 297.9 | $ 85.8 |
Business Acquisitions, Invest_4
Business Acquisitions, Investments and Restructuring Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Capital contributions to noncontrolling equity interest | $ 14.1 | $ 17.4 | ||
Loss from unconsolidated equity method investment | $ 4 | $ 5.6 | 27.2 | 5.7 |
Restructuring charges | 8.5 | $ 9.2 | 13 | 22.5 |
Restructuring expenditures | 7.9 | $ 18.7 | ||
Minimum | ||||
Business Acquisition [Line Items] | ||||
Expected charges to be incurred related to restructuring | 3 | 3 | ||
Maximum | ||||
Business Acquisition [Line Items] | ||||
Expected charges to be incurred related to restructuring | $ 5 | $ 5 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Narrative (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019USD ($)segment | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Other assets | $ 701.7 | $ 417.8 | |
Finite-lived intangible assets | $ (821.6) | $ (793.7) | |
Accounting Standards Update 2016-02 | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other assets | $ 1.9 | ||
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for other intangible assets | 1 year | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period for other intangible assets | 18 years | ||
Off-Market Favorable Lease | Accounting Standards Update 2016-02 | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets | $ 1.9 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll forward] | |
Beginning balance | $ 11,400.1 |
Acquisitions | 266.4 |
Divestitures | (14.6) |
Adjustments to Acquisitions | (1.4) |
Ending balance | 11,650.5 |
Group 1 | |
Goodwill [Roll forward] | |
Beginning balance | 6,150.6 |
Acquisitions | 85.9 |
Divestitures | 0 |
Adjustments to Acquisitions | (1.2) |
Ending balance | 6,235.3 |
Group 2 | |
Goodwill [Roll forward] | |
Beginning balance | 5,249.5 |
Acquisitions | 180.5 |
Divestitures | (14.6) |
Adjustments to Acquisitions | (0.2) |
Ending balance | $ 5,415.2 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Other Intangible Assets, Net (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Gross Intangible Assets | ||
Beginning balance | $ 793.7 | |
Acquisitions | 33.1 | |
Adjustments and Other | (5.2) | |
Ending balance | 821.6 | |
Accumulated Amortization | ||
Beginning balance | (687.2) | |
Additions Charged to Expense | (14.7) | |
Adjustments and Other | 4.4 | |
Ending balance | (697.5) | |
Other Intangible Assets, Net | 124.1 | $ 106.5 |
Customer relationships, franchise and other municipal agreements | ||
Gross Intangible Assets | ||
Beginning balance | 692.4 | |
Acquisitions | 26.1 | |
Adjustments and Other | 0 | |
Ending balance | 718.5 | |
Accumulated Amortization | ||
Beginning balance | (607.2) | |
Additions Charged to Expense | (11.2) | |
Adjustments and Other | 0.2 | |
Ending balance | (618.2) | |
Other Intangible Assets, Net | 100.3 | |
Non-compete agreements | ||
Gross Intangible Assets | ||
Beginning balance | 37 | |
Acquisitions | 7 | |
Adjustments and Other | 0.9 | |
Ending balance | 44.9 | |
Accumulated Amortization | ||
Beginning balance | (31.5) | |
Additions Charged to Expense | (2.9) | |
Adjustments and Other | 0 | |
Ending balance | (34.4) | |
Other Intangible Assets, Net | 10.5 | |
Other intangible assets | ||
Gross Intangible Assets | ||
Beginning balance | 64.3 | |
Acquisitions | 0 | |
Adjustments and Other | (6.1) | |
Ending balance | 58.2 | |
Accumulated Amortization | ||
Beginning balance | (48.5) | |
Additions Charged to Expense | (0.6) | |
Adjustments and Other | 4.2 | |
Ending balance | (44.9) | |
Other Intangible Assets, Net | $ 13.3 |
Other Assets - Prepaid Expenses
Other Assets - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Prepaid Expenses and Other Current Assets | ||
Prepaid expenses | $ 88 | $ 75.6 |
Inventories | 55.3 | 53.1 |
Other non-trade receivables | 39 | 34.4 |
Reinsurance receivable | 31.4 | 25.7 |
Income tax receivable | 17.6 | 187.7 |
Prepaid fees for cloud-based hosting arrangements, current | 11.8 | 10.2 |
Other current assets | 12.3 | 4.5 |
Total | $ 255.4 | $ 391.2 |
Other Assets - Other Assets (De
Other Assets - Other Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other Assets | ||
Right-of-use lease asset | $ 243.1 | $ 0 |
Deferred compensation plan | 110.4 | 100 |
Deferred contract costs and sales commissions | 82.4 | 89.2 |
Reinsurance receivable | 78 | 68 |
Investments | 58.6 | 73 |
Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements | 33.6 | 0 |
Amounts recoverable for capping, closure and post-closure obligations | 32.8 | 30.5 |
Interest rate swaps and locks | 13.1 | 12.8 |
Other derivative assets | 4.9 | 0 |
Deferred financing costs | 3.3 | 4.2 |
Other | 41.5 | 40.1 |
Total | $ 701.7 | $ 417.8 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other Accrued Liabilities | ||
Accrued payroll and benefits | $ 206 | $ 205.1 |
Insurance reserves, current portion | 156.7 | 152.9 |
Accrued fees and taxes | 139.7 | 124.2 |
Accrued dividends | 129.3 | 121 |
Operating right-of-use lease liabilities, current | 36.6 | 0 |
Ceded insurance reserves, current portion | 31.1 | 25.7 |
Interest rate swap locks | 29.1 | 0 |
Accrued professional fees and legal settlement reserves | 9.5 | 13.1 |
Other | 75.4 | 86.6 |
Total | 813.4 | 728.6 |
Other Long-Term Liabilities | ||
Operating right-of-use lease liabilities | 226 | 0 |
Deferred compensation plan | 112.9 | 96 |
Ceded insurance reserves | 79.6 | 68 |
Contingent consideration and acquisition holdbacks | 68.6 | 73.9 |
Other derivative liability | 24.2 | 0 |
Withdrawal liability - multiemployer pension funds | 12.1 | 12.2 |
Legal settlement reserves | 10 | 10 |
Pension and other post-retirement liabilities | 6.1 | 6 |
Interest rate swap locks | 1.6 | 0 |
Other | 50.4 | 55.3 |
Total | $ 591.5 | $ 321.4 |
Landfill and Environmental Co_3
Landfill and Environmental Costs - Narrative (Details) $ in Millions, ft³ in Billions | Sep. 27, 2018USD ($) | Sep. 30, 2019USD ($)landfillft³ | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Environmental Remediation Obligations [Abstract] | |||||
Number of active solid waste landfills | landfill | 190 | ||||
Total available disposal capacity (in cubic feet) | ft³ | 137.7 | ||||
Number of closed landfills | landfill | 129 | ||||
Environmental Exit Cost [Line Items] | |||||
Fair value of assets that are legally restricted for final capping, closure and post-closure obligations | $ 30.4 | $ 29.5 | |||
Amount of aggregate potential remediation liability | 369 | ||||
Payments for management and monitoring of remediation area | 29.4 | $ 30.2 | |||
Remediation liability | 515.6 | $ 552.3 | $ 540.2 | $ 564 | |
Bridgeton Landfill | |||||
Environmental Exit Cost [Line Items] | |||||
Payments for management and monitoring of remediation area | 12 | ||||
Remediation liability | 149.1 | ||||
Remediation liability expected to be paid during the remainder of 2018 | 2 | ||||
Bridgeton Landfill | Maximum | |||||
Environmental Exit Cost [Line Items] | |||||
Range of loss for remediation costs | $ 171 | ||||
West Lake Landfill Superfund Site | |||||
Environmental Exit Cost [Line Items] | |||||
Environmental exit costs, anticipated cost | $ 229 | ||||
West Lake Landfill Superfund Site | Minimum | |||||
Environmental Exit Cost [Line Items] | |||||
Environmental exit costs, time period allotted for completion | 4 years | ||||
West Lake Landfill Superfund Site | Maximum | |||||
Environmental Exit Cost [Line Items] | |||||
Environmental exit costs, time period allotted for completion | 5 years |
Landfill and Environmental Co_4
Landfill and Environmental Costs - Accrued Landfill and Environmental Costs (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Environmental Remediation Obligations [Abstract] | ||||
Landfill final capping, closure and post-closure liabilities | $ 1,339.6 | $ 1,292 | $ 1,289.9 | $ 1,257.7 |
Environmental remediation | 515.6 | 540.2 | $ 552.3 | $ 564 |
Total accrued landfill and environmental costs | 1,855.2 | 1,832.2 | ||
Less: current portion | (153.2) | (130.6) | ||
Long-term portion | $ 1,702 | $ 1,701.6 |
Landfill and Environmental Co_5
Landfill and Environmental Costs - Final Capping, Closure and Post-Closure Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Activity in asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure | ||||
Asset retirement obligation liabilities, beginning of year | $ 1,292 | $ 1,257.7 | ||
Non-cash additions | 32.9 | 33 | ||
Acquisitions, net of divestitures and other adjustments | 0.3 | (0.6) | ||
Asset retirement obligation adjustments | 0.7 | (18.4) | ||
Payments | (47.7) | (42.5) | ||
Accretion expense | $ 20.5 | $ 20.1 | 61.4 | 60.7 |
Asset retirement obligation liabilities, end of period | 1,339.6 | 1,289.9 | 1,339.6 | 1,289.9 |
Less: current portion | (80.9) | (94.2) | (80.9) | (94.2) |
Long-term portion | $ 1,258.7 | $ 1,195.7 | $ 1,258.7 | $ 1,195.7 |
Landfill and Environmental Co_6
Landfill and Environmental Costs - Environmental Remediation Liability (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Activity in environmental remediation liabilities | ||
Environmental remediation liabilities, beginning of year | $ 540.2 | $ 564 |
Net adjustments charged to expense | (9.6) | 3.3 |
Payments | (29.4) | (30.2) |
Accretion expense (non-cash interest expense) | 14.3 | 15.2 |
Acquisitions, net of divestitures and other adjustments | 0.1 | 0 |
Environmental remediation liabilities, end of period | 515.6 | 552.3 |
Less: current portion | (72.3) | (74.1) |
Long-term portion | $ 443.3 | $ 478.2 |
Debt - Carrying Values of Debt
Debt - Carrying Values of Debt Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Aug. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||||
Finance lease liability | $ 112.4 | |||
Long-term debt, gross and lease obligation | 8,717.9 | $ 8,445.2 | ||
Adjustments | (99.3) | (107.7) | ||
Finance leases | 109.5 | |||
Total Debt | 8,618.6 | 8,337.5 | ||
Less: current portion | (912.8) | (690.7) | ||
Long-term portion | 7,705.8 | 7,646.8 | ||
Uncommitted Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Principal | 12.2 | 33.4 | ||
Adjustments | 0 | 0 | ||
Carrying Value | 12.2 | 33.4 | ||
Credit facilities: June 2023 | ||||
Debt Instrument [Line Items] | ||||
Principal | 170 | 159 | ||
Adjustments | 0 | 0 | ||
Carrying Value | $ 170 | 159 | ||
Senior notes: September 2019 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 5.50% | 5.50% | ||
Principal | $ 0 | 650 | ||
Adjustments | 0 | (0.9) | ||
Carrying Value | $ 0 | 649.1 | ||
Senior notes: March 2020 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 5.00% | |||
Principal | $ 850 | 850 | ||
Adjustments | (0.4) | (1) | ||
Carrying Value | $ 849.6 | 849 | ||
Senior notes: November 2021 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 5.25% | |||
Principal | $ 600 | 600 | ||
Adjustments | (0.8) | (1.2) | ||
Carrying Value | $ 599.2 | 598.8 | ||
Senior notes: June 2022 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.55% | |||
Principal | $ 850 | 850 | ||
Adjustments | (2.9) | (3.6) | ||
Carrying Value | $ 847.1 | 846.4 | ||
Senior notes: May 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 4.75% | 4.75% | ||
Principal | $ 550 | 550 | ||
Adjustments | 4.9 | (5.5) | ||
Carrying Value | $ 554.9 | 544.5 | ||
Senior notes: August 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 2.50% | 2.50% | ||
Principal | $ 900 | 0 | ||
Adjustments | (8) | 0 | ||
Carrying Value | $ 892 | 0 | ||
Senior notes: March 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.20% | |||
Principal | $ 500 | 500 | ||
Adjustments | (3.7) | (4.3) | ||
Carrying Value | $ 496.3 | 495.7 | ||
Senior notes: July 2026 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 2.90% | |||
Principal | $ 500 | 500 | ||
Adjustments | (4) | (4.4) | ||
Carrying Value | $ 496 | 495.6 | ||
Senior notes: November 2027 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.375% | |||
Principal | $ 650 | 650 | ||
Adjustments | (5.4) | (5.9) | ||
Carrying Value | $ 644.6 | $ 644.1 | ||
Senior notes: May 2028 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.95% | 3.95% | ||
Principal | $ 800 | $ 800 | ||
Adjustments | (16.1) | (17.3) | ||
Carrying Value | $ 783.9 | 782.7 | ||
Senior notes: March 2035 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 6.086% | |||
Principal | $ 181.9 | 181.9 | ||
Adjustments | (14.1) | (14.4) | ||
Carrying Value | $ 167.8 | 167.5 | ||
Senior notes: March 2040 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 6.20% | |||
Principal | $ 399.9 | 399.9 | ||
Adjustments | (3.7) | (3.8) | ||
Carrying Value | $ 396.2 | 396.1 | ||
Senior notes: May 2041 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 5.70% | |||
Principal | $ 385.7 | 385.7 | ||
Adjustments | (5.3) | (5.3) | ||
Carrying Value | $ 380.4 | 380.4 | ||
Debentures: May 2021 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 9.25% | |||
Principal | $ 35.3 | 35.3 | ||
Adjustments | (0.5) | (0.7) | ||
Carrying Value | $ 34.8 | 34.6 | ||
Debentures: September 2035 | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 7.40% | |||
Principal | $ 148.1 | 148.1 | ||
Adjustments | (33.2) | (33.8) | ||
Carrying Value | 114.9 | 114.3 | ||
Tax-exempt: 2020 - 2049 | ||||
Debt Instrument [Line Items] | ||||
Principal | 1,072.4 | 1,042.4 | ||
Adjustments | (6.1) | (5.6) | ||
Carrying Value | $ 1,066.3 | $ 1,036.8 | ||
Tax-exempt: 2020 - 2049 | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.30% | |||
Tax-exempt: 2020 - 2049 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.875% | |||
Finance leases: 2019-2046 | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.07% | |||
Finance leases: 2019-2046 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 12.203% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Aug. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($)extension | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||||||||
Balance availability under Credit Facilities | $ 1,710,600,000 | $ 1,710,600,000 | $ 1,694,100,000 | ||||||
Line of credit facility amount outstanding | 170,000,000 | 170,000,000 | 159,000,000 | ||||||
Letters of credit utilizing availability under Credit Facilities | 352,000,000 | $ 352,000,000 | 379,600,000 | ||||||
Percentage of tax exempt financings | 100.00% | ||||||||
Present value of lease liabilities | 112,400,000 | $ 112,400,000 | |||||||
Finance leases | 109,500,000 | ||||||||
Gains (losses) on the change in fair value of the hedged senior notes | (1,100,000) | $ 1,900,000 | (10,000,000) | $ 11,100,000 | |||||
Gains (losses) on the related interest rate swaps | 1,400,000 | (2,000,000) | 10,500,000 | (11,500,000) | |||||
Interest rate swaps - other assets | 4,900,000 | 4,900,000 | 0 | ||||||
Unrealized (losses) gains | (11,900,000) | (43,000,000) | |||||||
Fair Value, Measurements, Recurring | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swaps | 30,700,000 | 30,700,000 | |||||||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swaps | 30,700,000 | 30,700,000 | |||||||
Interest Rate Swap Locks | |||||||||
Debt Instrument [Line Items] | |||||||||
Terminated derivative, notional amount | 600,000,000 | ||||||||
Net periodic earnings | $ 0 | ||||||||
Proceeds from issuance and retirement of hedging relationships | 31,100,000 | ||||||||
Amounts recognized in other income, net for ineffectiveness | 0 | ||||||||
Derivative, notional amount | 575,000,000 | 575,000,000 | 725,000,000 | ||||||
Unrealized (losses) gains | (11,900,000) | (43,000,000) | |||||||
Gains (loss) recognized in other comprehensive income, net of tax | $ 4,200,000 | $ 33,100,000 | |||||||
Expected amortization of yield adjustment on senior notes | 1,900,000 | ||||||||
Interest Rate Swap Locks | Fair Value, Measurements, Recurring | |||||||||
Debt Instrument [Line Items] | |||||||||
Derivatives interest rate locks | 1,300,000 | 1,300,000 | |||||||
Interest rate swaps - other assets | 10,300,000 | ||||||||
Interest Rate Swap Locks | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Derivatives interest rate locks | 1,300,000 | 1,300,000 | |||||||
Interest rate swaps | 30,700,000 | 30,700,000 | |||||||
Interest rate swaps - other assets | 10,300,000 | ||||||||
Interest Rate Swap | |||||||||
Debt Instrument [Line Items] | |||||||||
Derivative, notional amount | 300,000,000 | 300,000,000 | 300,000,000 | ||||||
Interest rate swaps at fair value | 13,100,000 | 13,100,000 | 2,500,000 | ||||||
Interest Rate Swap | Fair Value, Measurements, Recurring | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swaps - other assets | 13,100,000 | 13,100,000 | 2,500,000 | ||||||
Interest Rate Swap | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swaps - other assets | 13,100,000 | 13,100,000 | 2,500,000 | ||||||
Line of Credit Due May 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||||||
Line of Credit Due June 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 1,250,000,000 | ||||||||
Uncommitted Revolver | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 12,200,000 | 12,200,000 | 33,400,000 | ||||||
Senior Notes $900.0 million 2.5% due August 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 892,000,000 | $ 892,000,000 | 0 | ||||||
Principal face amount of debt | $ 900,000,000 | ||||||||
Interest rate | 2.50% | 2.50% | 2.50% | ||||||
Senior Notes $650.0 Million 5.500% Due September 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 0 | $ 0 | 649,100,000 | ||||||
Interest rate | 5.50% | 5.50% | 5.50% | ||||||
Extinguishment of debt, amount | $ 650,000,000 | ||||||||
Senior notes: May 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 783,900,000 | $ 783,900,000 | 782,700,000 | ||||||
Principal face amount of debt | $ 800,000,000 | ||||||||
Interest rate | 3.95% | 3.95% | 3.95% | ||||||
Senior Notes $700 Million 3.800% Due May 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.80% | ||||||||
Extinguishment of debt, amount | $ 700,000,000 | ||||||||
Tax Exempt Bonds and Other Tax Exempt Financings | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 1,066,300,000 | $ 1,066,300,000 | 1,036,800,000 | ||||||
Principal face amount of debt | $ 30,000,000 | ||||||||
Extinguishment of debt, amount | $ 35,000,000 | ||||||||
Senior Notes $550.0 million 4.750% Due May 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 554,900,000 | $ 554,900,000 | 544,500,000 | ||||||
Interest rate | 4.75% | 4.75% | 4.75% | ||||||
Senior Notes $500.0 million 3.20% Due March 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 496,300,000 | $ 496,300,000 | 495,700,000 | ||||||
Interest rate | 3.20% | 3.20% | |||||||
Senior Notes $500.0 million 3.20% Due March 2025 | Interest Rate Swap Locks | |||||||||
Debt Instrument [Line Items] | |||||||||
Accumulated and other comprehensive income (loss), net of tax | $ (3,500,000) | $ (3,500,000) | $ 11,200,000 | ||||||
Line of Credit | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 2,250,000,000 | ||||||||
Number of available extensions | extension | 2 | ||||||||
Extension period | 1 year | ||||||||
Facility feature, increase limit | $ 1,000,000,000 | ||||||||
Minimum | Interest Rate Swap Locks | |||||||||
Debt Instrument [Line Items] | |||||||||
Derivative, interest rate cap | 1.33% | 1.33% | 1.90% | ||||||
Minimum | Tax Exempt Bonds and Other Tax Exempt Financings | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.30% | 1.30% | |||||||
Maximum | Interest Rate Swap Locks | |||||||||
Debt Instrument [Line Items] | |||||||||
Derivative, interest rate cap | 3.00% | 3.00% | 3.25% | ||||||
Maximum | Tax Exempt Bonds and Other Tax Exempt Financings | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.875% | 1.875% |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Operating right-of-use lease assets | $ 243.1 | $ 0 |
Finance lease assets | 128.2 | |
Total lease assets | 371.3 | |
Current | ||
Operating | 36.6 | 0 |
Finance | 7 | |
Long-term | ||
Operating | 226 | $ 0 |
Finance | 105.4 | |
Total leased liabilities | $ 375 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Operating Lease Cost | ||
Fixed lease cost | $ 10.7 | $ 31 |
Short-term lease cost | 9.4 | 28.4 |
Variable lease cost | 4.6 | 13.3 |
Lease, Cost [Abstract] | ||
Amortization of leased assets | 1.4 | 4.1 |
Interest on leased liabilities | 1.9 | 5.6 |
Variable lease cost | 1.6 | 4.3 |
Total lease cost | $ 29.6 | $ 86.7 |
Leases - Aggregate Principal Pa
Leases - Aggregate Principal Payments (Details) $ in Millions | Sep. 30, 2019USD ($) |
Operating Leases | |
2019 (remaining) | $ 12.7 |
2020 | 42.8 |
2021 | 39.5 |
2022 | 33.3 |
2023 | 31.7 |
Thereafter | 157 |
Total lease payments | 317 |
Less: interest | (54.4) |
Present value of lease liabilities | 262.6 |
Finance Leases | |
2019 (remaining) | 3.7 |
2020 | 15.6 |
2021 | 14 |
2022 | 13.4 |
2023 | 39.2 |
Thereafter | 129 |
Total lease payments | 214.9 |
Less: interest | (102.5) |
Finance lease liability | 112.4 |
Total | |
2019 (remaining) | 16.4 |
2020 | 58.4 |
2021 | 53.5 |
2022 | 46.7 |
2023 | 70.9 |
Thereafter | 286 |
Total lease payments | 531.9 |
Less: interest | (156.9) |
Present value of lease liability | $ 375 |
Leases - Weighted Average Lease
Leases - Weighted Average Lease Term and Discount Rate (Details) | Sep. 30, 2019 |
Weighted-average remaining lease term (years) | |
Operating leases | 9 years |
Finance leases | 14 years 8 months 12 days |
Weighted-average discount rate | |
Operating leases | 3.90% |
Finance leases | 7.00% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 25 | $ 73.3 |
Operating cash flows from finance leases | 3.5 | 9.9 |
Financing cash flows from finance leases | 1.6 | 4.4 |
Leased assets obtained in exchange for new finance lease liabilities | 6.3 | 7.1 |
Leased assets obtained in exchange for new operating lease liabilities | $ 26.6 | $ 36 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 19.30% | 22.70% | 22.50% | 23.60% |
Cash paid for income taxes | $ 4.3 | $ 43.5 | ||
Valuation allowance, state loss carryforwards | $ 68 | 68 | ||
Accrued liability for penalties | 0.3 | 0.3 | ||
Accrued liability for interest related to uncertain tax positions and penalties | $ 11 | $ 11 |
Stock Repurchases, Dividends _3
Stock Repurchases, Dividends and Earnings per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Jul. 31, 2019 | Oct. 31, 2017 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Equity [Abstract] | |||||||||||
Reserve for stock issuance (in shares) | 12,800,000 | 12,800,000 | |||||||||
Stock repurchased and pending settlement (in shares) | 100,000 | 0 | 100,000 | 0 | |||||||
Stock repurchased and pending settlement, liability | $ 0.1 | $ 0.1 | |||||||||
Additional shares authorized for repurchase, value | $ 2,000 | ||||||||||
Remaining authorized repurchase amount | $ 750.3 | $ 750.3 | |||||||||
Quarterly dividend declared (in dollars per share) | $ 0.405 | $ 0.405 | $ 0.375 | $ 1.155 | $ 1.065 | ||||||
Cash dividends declared | $ 129.3 | $ 120.2 | $ 120.7 | $ 121.7 | $ 112.4 | $ 113.3 | $ 370.2 | ||||
Quarterly dividend payable | $ 129.3 | $ 129.3 | $ 121 | ||||||||
Antidilutive securities (in shares) | 0 | 0 | 0 | 0 |
Stock Repurchases, Dividends _4
Stock Repurchases, Dividends and Earnings per Share - Share Repurchase Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Equity [Abstract] | ||||
Number of shares repurchased (in shares) | 1.7 | 1.4 | 4.3 | 8.5 |
Amount paid | $ 151.3 | $ 100.9 | $ 353.8 | $ 574.9 |
Weighted average cost per share (in dollars per share) | $ 86.87 | $ 71.83 | $ 81.63 | $ 67.84 |
Stock Repurchases, Dividends _5
Stock Repurchases, Dividends and Earnings per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic earnings per share: | ||||
Net income attributable to Republic Services, Inc. | $ 298,300 | $ 263,400 | $ 784,000 | $ 736,000 |
Weighted average common shares outstanding (in shares) | 320,633 | 325,483 | 321,544 | 327,830 |
Basic earnings per share (in dollars per share) | $ 0.93 | $ 0.81 | $ 2.44 | $ 2.25 |
Effect of dilutive securities: | ||||
Options to purchase common stock (in shares) | 368 | 673 | 437 | 799 |
Weighted average common and common equivalent shares outstanding (in shares) | 321,710 | 326,944 | 322,644 | 329,326 |
Diluted earnings per share (in dollars per share) | $ 0.93 | $ 0.81 | $ 2.43 | $ 2.23 |
Restricted stock units | ||||
Effect of dilutive securities: | ||||
Unvested awards (in shares) | 433 | 525 | 415 | 456 |
Performance shares | ||||
Effect of dilutive securities: | ||||
Unvested awards (in shares) | 276 | 263 | 248 | 241 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income by Component - Summary of Changes in AOCI (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ 7,929.5 | $ 7,955.2 | $ 7,848.8 | $ 7,929.5 | $ 7,961.1 |
Other comprehensive income before reclassifications | (43.8) | ||||
Amounts reclassified from accumulated other comprehensive income | (0.5) | (1.2) | (0.9) | (2.2) | |
Other comprehensive income (loss), net of tax | (12.4) | 3.2 | (44.7) | 33.3 | |
Adoption of accounting standards | 5.4 | 5.4 | |||
Balance at end of period | 7,978.5 | 7,923.9 | 7,978.5 | 7,923.9 | |
Total | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 30.8 | 3.9 | 52.8 | 30.8 | 22.6 |
Balance at end of period | (8.5) | $ 56 | (8.5) | $ 56 | |
Cash Flow Hedge | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | 16.1 | 16.1 | |||
Other comprehensive income before reclassifications | (43) | ||||
Amounts reclassified from accumulated other comprehensive income | (0.9) | ||||
Other comprehensive income (loss), net of tax | (43.9) | ||||
Adoption of accounting standards | 5.4 | ||||
Balance at end of period | (22.4) | (22.4) | |||
Defined Benefit Pension Items | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ 14.7 | 14.7 | |||
Other comprehensive income before reclassifications | (0.8) | ||||
Amounts reclassified from accumulated other comprehensive income | 0 | ||||
Other comprehensive income (loss), net of tax | (0.8) | ||||
Adoption of accounting standards | 0 | ||||
Balance at end of period | $ 13.9 | $ 13.9 |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Income by Component - Summary of Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | $ 2,646.9 | $ 2,565.7 | $ 7,722.7 | $ 7,510.9 |
Cost of operations | (1,631.4) | (1,577.4) | (4,754.4) | (4,624.4) |
Interest expense | (98) | (96) | (296.9) | (287.3) |
Tax expense | (71.5) | (77.4) | (227.1) | (227.1) |
Total gains reclassified into earnings | 0.5 | 1.2 | 0.9 | 2.2 |
Cash Flow Hedge | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total gains reclassified into earnings | 0.9 | |||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedge | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 0.7 | 1.2 | ||
Tax expense | (0.2) | (0.3) | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedge | Commodity Contract | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | 0 | 0 | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedge | Fuel hedges | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of operations | 0 | 0 | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedge | Terminated interest rate locks | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ 0.7 | $ 1.2 | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedge | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 1.6 | 3 | ||
Tax expense | (0.4) | (0.8) | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedge | Commodity Contract | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | 0.4 | 0.7 | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedge | Fuel hedges | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of operations | 1.2 | 3.1 | ||
Amount Reclassified from Accumulated Other Comprehensive Income | Cash Flow Hedge | Terminated interest rate locks | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ 0 | $ (0.8) |
Financial Instruments - Derivat
Financial Instruments - Derivative Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ (98) | $ (96) | $ (296.9) | $ (287.3) |
Realized gain reclassified into earnings | (0.5) | (0.9) | ||
Interest Expense | Interest Rate Swap | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) on change in fair value of derivative | 0.3 | 0.5 | ||
Interest Expense | Interest Rate Swap Locks | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Realized gain reclassified into earnings | 0.5 | 0.9 | ||
Fair Value Hedging | Interest Expense | Interest Rate Swap | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0.3 | 1.7 | ||
Fair Value Hedging | Other Income | Interest Rate Swap | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net periodic earnings | $ 0.3 | $ 0.5 | ||
Net periodic earnings | (0.2) | (0.4) | ||
Cash Flow Hedging | Interest Expense | Interest Rate Swap Locks | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | $ 0 | $ (0.6) |
Financial Instruments - Assets
Financial Instruments - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Other derivative assets | $ 4.9 | $ 0 |
Liabilities: | ||
Contingent consideration | 68.6 | 73.9 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Total assets | 112.9 | 97.7 |
Liabilities: | ||
Derivative liabilities | 24.2 | |
Interest rate swaps | 30.7 | |
Contingent consideration | 72.5 | 71.4 |
Total liabilities | 127.4 | 71.4 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Total assets | 42.9 | 37.1 |
Liabilities: | ||
Derivative liabilities | 0 | |
Interest rate swaps | 0 | |
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total assets | 70 | 60.6 |
Liabilities: | ||
Derivative liabilities | 24.2 | |
Interest rate swaps | 30.7 | |
Contingent consideration | 0 | 0 |
Total liabilities | 54.9 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | |
Interest rate swaps | 0 | |
Contingent consideration | 72.5 | 71.4 |
Total liabilities | 72.5 | 71.4 |
Fair Value, Measurements, Recurring | Interest Rate Swap | ||
Assets: | ||
Other derivative assets | 13.1 | 2.5 |
Fair Value, Measurements, Recurring | Interest Rate Swap | Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Other derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Interest Rate Swap | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Other derivative assets | 13.1 | 2.5 |
Fair Value, Measurements, Recurring | Interest Rate Swap | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Other derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring | Other Derivatives | ||
Assets: | ||
Other derivative assets | 4.9 | |
Fair Value, Measurements, Recurring | Other Derivatives | Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Other derivative assets | 0 | |
Fair Value, Measurements, Recurring | Other Derivatives | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Other derivative assets | 4.9 | |
Fair Value, Measurements, Recurring | Other Derivatives | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Other derivative assets | 0 | |
Fair Value, Measurements, Recurring | Interest Rate Swap Locks | ||
Assets: | ||
Other derivative assets | 10.3 | |
Derivatives interest rate locks | 1.3 | |
Fair Value, Measurements, Recurring | Interest Rate Swap Locks | Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Other derivative assets | 0 | |
Derivatives interest rate locks | 0 | |
Fair Value, Measurements, Recurring | Interest Rate Swap Locks | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Other derivative assets | 10.3 | |
Derivatives interest rate locks | 1.3 | |
Liabilities: | ||
Interest rate swaps | 30.7 | |
Fair Value, Measurements, Recurring | Interest Rate Swap Locks | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Other derivative assets | 0 | |
Derivatives interest rate locks | 0 | |
Carrying Amount | ||
Assets: | ||
Total assets | 112.9 | 97.7 |
Liabilities: | ||
Derivative liabilities | 24.2 | |
Interest rate swaps | 30.7 | |
Contingent consideration | 72.5 | 71.4 |
Total liabilities | 127.4 | 71.4 |
Carrying Amount | Interest Rate Swap | ||
Assets: | ||
Other derivative assets | 13.1 | 2.5 |
Carrying Amount | Other Derivatives | ||
Assets: | ||
Other derivative assets | 4.9 | |
Carrying Amount | Interest Rate Swap Locks | ||
Assets: | ||
Other derivative assets | 10.3 | |
Derivatives interest rate locks | 1.3 | |
Money market mutual funds | Fair Value, Measurements, Recurring | ||
Assets: | ||
Money market mutual funds | 42.9 | 37.1 |
Money market mutual funds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Money market mutual funds | 42.9 | 37.1 |
Money market mutual funds | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Money market mutual funds | 0 | 0 |
Money market mutual funds | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Money market mutual funds | 0 | 0 |
Money market mutual funds | Carrying Amount | ||
Assets: | ||
Money market mutual funds | 42.9 | 37.1 |
Bonds | Fair Value, Measurements, Recurring | ||
Assets: | ||
Bonds - restricted cash and marketable securities and other assets | 50.7 | 47.8 |
Bonds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Assets: | ||
Bonds - restricted cash and marketable securities and other assets | 0 | 0 |
Bonds | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Bonds - restricted cash and marketable securities and other assets | 50.7 | 47.8 |
Bonds | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Bonds - restricted cash and marketable securities and other assets | 0 | 0 |
Bonds | Carrying Amount | ||
Assets: | ||
Bonds - restricted cash and marketable securities and other assets | $ 50.7 | $ 47.8 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Aug. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||||
Interest rate swaps - other assets | $ 4,900,000 | $ 4,900,000 | $ 0 | |
Contingent consideration | 68,600,000 | 68,600,000 | 73,900,000 | |
Waste Management Contract, Sonoma County | ||||
Derivative [Line Items] | ||||
Contingent consideration | 65,900,000 | 65,900,000 | ||
Potential undiscounted future contingent liability payments, minimum | 79,000,000 | 79,000,000 | ||
Potential undiscounted future contingent liability payments, maximum | 168,000,000 | 168,000,000 | ||
Change in contingent consideration, liability | $ 0 | |||
Waste Management Contract, Sonoma County | Landfill | ||||
Derivative [Line Items] | ||||
Expected useful life | 30 years | |||
Landfill Acquisitions | ||||
Derivative [Line Items] | ||||
Contingent consideration | 4,100,000 | $ 4,100,000 | ||
Change in contingent consideration, liability | 0 | |||
Collection Business | ||||
Derivative [Line Items] | ||||
Contingent consideration | 2,500,000 | 2,500,000 | ||
Senior Notes $900.0 million 2.5% due August 2024 | ||||
Derivative [Line Items] | ||||
Long-term debt | $ 892,000,000 | $ 892,000,000 | 0 | |
Interest rate | 2.50% | 2.50% | 2.50% | |
Extended Interest Rate Swaps | ||||
Derivative [Line Items] | ||||
Terminated derivative, notional amount | $ 375,000,000 | |||
Interest rate swaps | $ 24,200,000 | $ 24,200,000 | ||
Gain (loss) on change in fair value of derivative | (5,400,000) | (5,400,000) | ||
Offsetting Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Interest rate swaps - other assets | 4,900,000 | 4,900,000 | ||
Gain (loss) on change in fair value of derivative | 4,900,000 | 4,900,000 | ||
Carrying Amount | ||||
Derivative [Line Items] | ||||
Long-term debt | 8,600,000,000 | 8,600,000,000 | 8,300,000,000 | |
Interest rate swaps | 24,200,000 | 24,200,000 | ||
Contingent consideration | 72,500,000 | 72,500,000 | 71,400,000 | |
Estimate of Fair Value Measurement | ||||
Derivative [Line Items] | ||||
Long-term debt | $ 9,400,000,000 | $ 9,400,000,000 | $ 8,700,000,000 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Financial I
Segment Reporting - Financial Information by Regional Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Gross Revenue | $ 3,135.8 | $ 3,037.3 | $ 9,147.1 | $ 8,905.6 | |
Intercompany Revenue | (488.9) | (471.6) | (1,424.4) | (1,394.7) | |
Net Revenue | 2,646.9 | 2,565.7 | 7,722.7 | 7,510.9 | |
Depreciation, Amortization, Depletion and Accretion | 287.8 | 282.5 | 844.5 | 841.7 | |
Operating Income (Loss) | 467.8 | 440.3 | 1,328 | 1,252.6 | |
Capital Expenditures | 319.6 | 278.3 | 908.3 | 820.5 | |
Total Assets | 22,329.1 | 21,402.1 | 22,329.1 | 21,402.1 | $ 21,617 |
Corporate entities | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 43.9 | 42.9 | 129.1 | 129.4 | |
Intercompany Revenue | (5) | (4.1) | (13.2) | (11.8) | |
Net Revenue | 38.9 | 38.8 | 115.9 | 117.6 | |
Depreciation, Amortization, Depletion and Accretion | 25.4 | 29.6 | 75.2 | 88.5 | |
Operating Income (Loss) | (91) | (89.6) | (280.6) | (265.3) | |
Capital Expenditures | (1.1) | (6.1) | 133.3 | 101.5 | |
Total Assets | 1,653.2 | 1,463.8 | 1,653.2 | 1,463.8 | |
Group 1 | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 1,543.2 | 1,476.7 | 4,502.8 | 4,342.9 | |
Intercompany Revenue | (258) | (247.2) | (760) | (740.3) | |
Net Revenue | 1,285.2 | 1,229.5 | 3,742.8 | 3,602.6 | |
Depreciation, Amortization, Depletion and Accretion | 128.7 | 123.9 | 377.2 | 370.9 | |
Operating Income (Loss) | 316 | 298.5 | 913.1 | 851.6 | |
Capital Expenditures | 163.3 | 147.4 | 400.4 | 397.8 | |
Total Assets | 11,290.3 | 10,968.3 | 11,290.3 | 10,968.3 | |
Group 2 | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 1,548.7 | 1,517.7 | 4,515.2 | 4,433.3 | |
Intercompany Revenue | (225.9) | (220.3) | (651.2) | (642.6) | |
Net Revenue | 1,322.8 | 1,297.4 | 3,864 | 3,790.7 | |
Depreciation, Amortization, Depletion and Accretion | 133.7 | 129 | 392.1 | 382.3 | |
Operating Income (Loss) | 242.8 | 231.4 | 695.5 | 666.3 | |
Capital Expenditures | 157.4 | 137 | 374.6 | 321.2 | |
Total Assets | $ 9,385.6 | $ 8,970 | $ 9,385.6 | $ 8,970 |
Revenue - Disaggregation (Detai
Revenue - Disaggregation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 2,646.9 | $ 2,565.7 | $ 7,722.7 | $ 7,510.9 |
Revenue as a percentage of total revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Transfer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 154.9 | $ 142.3 | $ 429 | $ 397.9 |
Revenue as a percentage of total revenue | 5.80% | 5.50% | 5.60% | 5.30% |
Landfill | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 339.8 | $ 331.4 | $ 974.1 | $ 953.2 |
Revenue as a percentage of total revenue | 12.80% | 12.90% | 12.60% | 12.70% |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 125.6 | $ 132.5 | $ 382.8 | $ 385.7 |
Revenue as a percentage of total revenue | 4.80% | 5.20% | 5.00% | 5.10% |
Recycling processing and commodity sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 68.6 | $ 76 | $ 213.2 | $ 219.9 |
Revenue as a percentage of total revenue | 2.60% | 3.00% | 2.80% | 2.90% |
Other non-core | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 57 | $ 56.5 | $ 169.6 | $ 165.8 |
Revenue as a percentage of total revenue | 2.20% | 2.20% | 2.20% | 2.20% |
Operating Segments | Collection | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 1,968.8 | $ 1,908 | $ 5,793.2 | $ 5,624.5 |
Revenue as a percentage of total revenue | 74.40% | 74.40% | 75.00% | 74.90% |
Operating Segments | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 574.4 | $ 563.2 | $ 1,701.8 | $ 1,672.4 |
Revenue as a percentage of total revenue | 21.70% | 22.00% | 22.00% | 22.30% |
Operating Segments | Small-container | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 799.1 | $ 772.5 | $ 2,369 | $ 2,286 |
Revenue as a percentage of total revenue | 30.20% | 30.10% | 30.70% | 30.40% |
Operating Segments | Large-container | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 583.6 | $ 561.3 | $ 1,688.2 | $ 1,633.5 |
Revenue as a percentage of total revenue | 22.10% | 21.90% | 21.90% | 21.80% |
Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 11.7 | $ 11 | $ 34.2 | $ 32.6 |
Revenue as a percentage of total revenue | 0.40% | 0.40% | 0.40% | 0.40% |
Operating Segments | Transfer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 347.1 | $ 322.9 | $ 985.8 | $ 932.5 |
Operating Segments | Landfill | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 605.3 | 590.2 | 1,750.7 | 1,720.7 |
Operating Segments | Environmental services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 57.8 | $ 51.5 | $ 143.6 | $ 149.6 |
Revenue as a percentage of total revenue | 2.20% | 2.00% | 1.80% | 2.00% |
Intersegment Eliminations | Transfer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ (192.2) | $ (180.6) | $ (556.8) | $ (534.6) |
Intersegment Eliminations | Landfill | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ (265.5) | $ (258.8) | $ (776.6) | $ (767.5) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Deferred contract costs and capitalized sales commissions | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized contract cost, gross | $ 82.4 | $ 82.4 | $ 89.2 | ||
Capitalized sales commissions to selling, general and administrative expenses | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized contract cost, amortization | 2.9 | $ 2.8 | 8.9 | $ 8.3 | |
Other deferred contract costs as a reduction of revenue | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized contract cost, amortization | $ 1.6 | $ 1.6 | $ 4.6 | $ 4.4 |
Commitments and Contingencies -
Commitments and Contingencies - Legal Proceedings (Details) $ in Millions | Sep. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Losses accrued related to legal proceedings | $ 19 |
Loss contingency additional potential liability | $ 15 |
Commitments and Contingencies_2
Commitments and Contingencies - Multiemployer Pension Plans (Details) | 9 Months Ended |
Sep. 30, 2019pension_plan | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of multi-employer pension plans | 26 |
Commitments and Contingencies_3
Commitments and Contingencies - Restricted Cash and Marketable Securities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Restricted Cash and Marketable Securities [Abstract] | ||||
Capping, closure and post-closure obligations | $ 30.4 | $ 29.5 | ||
Insurance | 90.9 | 78.6 | ||
Total restricted cash and marketable securities | $ 121.3 | $ 108.1 | $ 99.1 | $ 141.1 |
Commitments and Contingencies_4
Commitments and Contingencies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Cash and cash equivalents | $ 55.6 | $ 70.5 | $ 81.9 | $ 83.3 |
Restricted cash and marketable securities | 121.3 | 108.1 | 99.1 | 141.1 |
Less: restricted marketable securities | (48.3) | (45.3) | (44.1) | (45.3) |
Cash, cash equivalents, restricted cash and restricted cash equivalents | $ 128.6 | $ 133.3 | $ 136.9 | $ 179.1 |
Uncategorized Items - rsg-20190
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 33,400,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (5,400,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 33,400,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 5,400,000 |