Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q4 | ||
Trading Symbol | CVA | ||
Entity Registrant Name | COVANTA HOLDING CORP | ||
Entity Central Index Key | 225,648 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 130,401,036 | ||
Entity Public Float | $ 1.9 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Net Interest Expense On Project Debt | $ 9 | $ 10 | |
OPERATING REVENUES: | |||
Waste and service revenue | $ 1,187 | 1,104 | 1,032 |
Electricity and steam sales | 370 | 421 | 460 |
Recycled metals revenues | 61 | 61 | 93 |
Other operating revenues | 81 | 59 | 97 |
Total operating revenues | 1,699 | 1,645 | 1,682 |
OPERATING EXPENSES: | |||
Plant operating expenses | 1,177 | 1,129 | 1,055 |
Other operating expenses | 86 | 73 | 101 |
General and administrative expenses | 100 | 93 | 97 |
Depreciation and amortization expense | 207 | 198 | 211 |
Impairment charges | 20 | 43 | 64 |
Total operating expense | 1,590 | 1,536 | 1,528 |
Operating income | 109 | 109 | 154 |
Other income (expense): | |||
Investment income | 1 | 0 | 1 |
Interest expense | (139) | (134) | (135) |
Non-cash convertible debt related expense | 0 | 0 | (13) |
Gain on asset sales | 44 | 0 | 0 |
Loss on extinguishment of debt | 0 | (2) | (2) |
Other expense, net | (1) | (1) | (1) |
Total other expenses | (95) | (137) | (150) |
Income (loss) before income tax expense (benefit) and equity in net income from unconsolidated investments | 14 | (28) | 4 |
Income tax expense | (22) | 84 | (15) |
Equity in net income from unconsolidated investments | 4 | 13 | 10 |
Net (loss) income | (4) | 69 | (1) |
Less: Net income attributable to noncontrolling interests in subsidiaries | 0 | 1 | 1 |
NET INCOME ATTRIBUTABLE TO COVANTA HOLDING CORPORATION | $ (4) | $ 68 | $ (2) |
Weighted Average Common Shares Outstanding [Abstract] | |||
Basic | 129 | 132 | 130 |
Diluted | 129 | 133 | 130 |
(Loss) Income Per Share Attributable to Covanta Holding Corporation Stockholders: | |||
Basic | $ (0.03) | $ 0.52 | $ (0.01) |
Diluted | (0.03) | 0.51 | (0.01) |
Cash Dividend Declared Per Share: | $ 1 | $ 1 | $ 0.86 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (4) | $ 69 | $ (1) |
Foreign currency translation | (7) | (22) | (12) |
Net unrealized (loss) gain on derivative instruments, net of tax (benefit) expense of $(8), $7, and $2, respectively | (21) | 10 | (7) |
Net unrealized loss on available for sale securities | 0 | 0 | (1) |
Other comprehensive loss attributable to Covanta Holding Corporation | (28) | (12) | (20) |
Comprehensive (loss) income attributable to Covanta Holding Corporation | (32) | 57 | (21) |
Comprehensive (loss) income attributable to Covanta Holding Corporation | $ (32) | $ 56 | $ (22) |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Paranthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized (loss) gain on derivative instruments, net of tax (benefit) expense of $(8), $7, and $2, respectively | $ (8) | $ 7 | $ 2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current: | ||
Cash and cash equivalents | $ 84 | $ 94 |
Restricted funds held in trust | 56 | 77 |
Receivables (less allowances of $9 million and $7 million, respectively) | 332 | 312 |
Prepaid expenses and other current assets | 72 | 117 |
Assets held for sale | 0 | 97 |
Total Current Assets | 544 | 697 |
Property, plant and equipment, net | 3,024 | 2,690 |
Restricted funds held in trust | 54 | 83 |
Waste, service and energy contracts, net | 263 | 284 |
Other intangible assets, net | 34 | 38 |
Goodwill | 302 | 301 |
Other assets | 63 | 141 |
Total Assets | 4,284 | 4,234 |
Current: | ||
Current portion of long-term debt | 9 | 8 |
Current portion of project debt | 22 | 16 |
Accounts payable | 98 | 90 |
Accrued expenses and other current liabilities | 289 | 234 |
Liabilities held for sale | 0 | 23 |
Total Current Liabilities | 418 | 371 |
Long-term debt | 2,243 | 2,255 |
Project debt | 361 | 182 |
Deferred income taxes | 617 | 595 |
Waste And Service Contracts Noncurrent | 7 | 13 |
Other liabilities | 169 | 178 |
Total Liabilities | 3,815 | 3,594 |
Covanta Holding Corporation stockholders' equity: | ||
Preferred stock ($0.10 par value; authorized 10 shares; none issued and outstanding) | 0 | 0 |
Common stock ($0.10 par value; authorized 250 shares; issued; outstanding) | 14 | 14 |
Additional paid-in capital | 807 | 801 |
Accumulated other comprehensive (loss) income | (62) | (34) |
Retained Earnings (Accumulated Deficit) | (289) | (143) |
Treasury stock, at par | (1) | 0 |
Total Covanta Holding Corporation stockholders' equity | 469 | 638 |
Noncontrolling interests in subsidiaries | 0 | 2 |
Total Equity | 469 | 640 |
Total Liabilities and Equity | $ 4,284 | $ 4,234 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 9 | $ 7 |
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 10 | 10 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 250 | 250 |
Common Stock, Shares, Issued | 136 | 136 |
Common stock, shares outstanding | 130 | 131 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
OPERATING ACTIVITIES: | |||
Net (loss) income | $ (4) | $ 69 | $ (1) |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities from continuing operations: | |||
Depreciation and amortization expense | 207 | 198 | 211 |
Amortization of long-term debt deferred financing costs | 6 | 8 | 8 |
Gain on asset sales | (44) | 0 | 0 |
Impairment charges | 20 | 43 | 64 |
Amortization of debt premium and discount | 1 | 0 | (1) |
Loss on extinguishment of debt | 0 | 2 | 2 |
Non-cash convertible debt related expense | 0 | 0 | 13 |
Provision for doubtful accounts | 2 | 1 | 4 |
Stock-based compensation expense | 16 | 18 | 17 |
Equity in net income from unconsolidated investments | (4) | (13) | (10) |
Dividends from unconsolidated investments | 2 | 5 | 11 |
Deferred Income Taxes | 21 | (11) | 4 |
IRS audit settlement | 0 | (93) | 0 |
Change in restricted funds held in trust | 22 | 28 | 11 |
Other, net | (6) | 16 | 2 |
Change in operating assets and liabilities, net of effects of acquisitions: | |||
Receivables | (19) | (12) | (40) |
Debt services billings in excess of revenue recognized | (1) | 5 | 17 |
Accounts payable and accrued expenses | 45 | (8) | 57 |
Deferred revenue | (2) | (5) | (22) |
Other, net | 20 | (2) | (7) |
Total adjustments for continuing operations | (286) | (180) | (341) |
Net cash provided by operating activities from continuing operations | 282 | 249 | 340 |
Net cash used in operating activities from discontinued operations | 0 | 0 | 1 |
Net cash provided by operating activities | 282 | 249 | 341 |
INVESTING ACTIVITIES: | |||
Purchase of property, plant and equipment | (359) | (376) | (216) |
Acquisition of businesses, net of cash acquired | (9) | (72) | (13) |
Acquisition of noncontrolling interests in subsidiaries | 0 | 0 | (12) |
Purchase of investment securities | 0 | 0 | (4) |
Proceeds from asset sales | 109 | 0 | 0 |
Property insurance proceeds | 3 | 1 | 2 |
Proceeds from the sale of investment securities | 0 | 0 | 6 |
Proceeds from available-for-sale marketable securities | 0 | 0 | 11 |
Other, net | 2 | (1) | (6) |
Net cash used in investing activities from continuing operations | (254) | (448) | (232) |
Net cash provided by investing activities from discontinued operations | 0 | 0 | 3 |
Net cash used in investing activities | (254) | (448) | (229) |
FINANCING ACTIVITIES: | |||
Proceeds from borrowings on long-term debt | 0 | 294 | 412 |
Proceeds from borrowings on revolving credit facility | (744) | (895) | (531) |
Proceeds from equipment financing capital lease | 0 | 15 | 63 |
Proceeds from borrowings on project debt | 0 | 59 | 63 |
Proceeds from borrowings on Dublin project financing | 159 | 86 | 0 |
Proceeds from the exercise of options for common stock, net | 0 | 0 | 10 |
Proceeds from settlement of Note Hedge | 0 | 0 | (83) |
Payments related to cash conversion option | 0 | 0 | 83 |
Principal payments on long-term debt | (4) | (196) | (557) |
Payments of borrowings on revolving credit facility | (749) | (692) | (496) |
Payments of equipment financing capital lease | (4) | (4) | (1) |
Principal payments on project debt | (51) | (85) | (52) |
Payments of deferred financing costs | (6) | (11) | (36) |
Cash dividends paid to stockholders | (131) | (133) | (101) |
Common stock repurchased | (20) | (30) | 0 |
Change in restricted funds held in trust | 28 | 5 | (43) |
Other, net | (6) | 5 | (3) |
Net cash used in financing activities from continuing operations | (40) | 208 | (210) |
Net cash provided by financing activities from discontinued operations | 0 | 0 | (6) |
Net cash used in financing activities | (40) | 208 | (216) |
Effect of exchange rate changes on cash and cash equivalents | 0 | (4) | (5) |
Net (decrease) increase in cash and cash equivalents | (12) | 5 | (109) |
Cash and cash equivalents at beginning of period | 96 | 91 | 200 |
Cash and cash equivalents at end of period | 84 | 96 | 91 |
Less: Cash and cash equivalents of assets held for sale and discontinued operations at end of period | 0 | 2 | 7 |
Cash Equivalents, at Carrying Value | 84 | 94 | 84 |
Cash and cash equivalents of continuing operations at end of period | 84 | 94 | |
Cash Paid for Interest and Income Taxes: | |||
Cash Paid for Interest | 150 | 141 | 121 |
Cash Paid of Income taxes, net of refunds | $ 6 | $ 2 | $ 11 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings, Unappropriated [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Shares, Outstanding | 136,000,000 | ||||||
Common Stock, Value, Issued | $ 14 | ||||||
Additional Paid in Capital | $ 790 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (2) | ||||||
Retained Earnings (Accumulated Deficit) | $ 101 | ||||||
Treasury Stock, Shares | 6,000,000 | ||||||
Treasury Stock, Value | $ (1) | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 4 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 906 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 17 | 17 | |||||
Dividends, Common Stock | (114) | (114) | |||||
Cost of Repurchased Shares for Tax Wittholding for Share Based Compensation | (4) | (4) | |||||
Stock Issued During Period, Value, Stock Options Exercised | $ 10 | 10 | $ (1) | ||||
Shares issuable from warrant exercises | 1,430,870 | (1,000,000) | |||||
Proceeds from Warrant Exercises | $ 1 | $ 1 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | (1,000,000) | ||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 0 | ||||||
Stockholders' Equity, Other | 1 | (1) | |||||
Acquisition Of Noncontrolling Interests In Subsidiaries | (12) | (9) | (3) | ||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (22) | (20) | |||||
NET INCOME ATTRIBUTABLE TO COVANTA HOLDING CORPORATION | (2) | (2) | |||||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (1) | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (21) | ||||||
Less: Net income attributable to noncontrolling interests in subsidiaries | 1 | ||||||
Shares, Outstanding | 136,000,000 | ||||||
Common Stock, Value, Issued | $ 14 | ||||||
Additional Paid in Capital | 805 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (22) | (22) | |||||
Retained Earnings (Accumulated Deficit) | (15) | ||||||
Treasury Stock, Shares | 3,000,000 | ||||||
Treasury Stock, Value | $ 0 | ||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 2 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 784 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 18 | 18 | |||||
Dividends, Common Stock | (133) | (133) | |||||
Stock Repurchased During Period, Value | (32) | (13) | (19) | ||||
Stock Repurchased During Period, Shares | 2,000,000 | ||||||
Cost of Repurchased Shares for Tax Wittholding for Share Based Compensation | (5) | ||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (1) | (1) | |||||
Stockholders' Equity, Other | 1 | (1) | |||||
Acquisition Of Noncontrolling Interests In Subsidiaries | 4 | (4) | |||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 56 | (12) | |||||
NET INCOME ATTRIBUTABLE TO COVANTA HOLDING CORPORATION | 68 | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 57 | ||||||
Less: Net income attributable to noncontrolling interests in subsidiaries | 1 | ||||||
Shares, Outstanding | 136,000,000 | ||||||
Common Stock, Value, Issued | $ 14 | ||||||
Additional Paid in Capital | 801 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (34) | (34) | |||||
Retained Earnings (Accumulated Deficit) | (143) | (143) | |||||
Treasury Stock, Shares | 5,000,000 | ||||||
Treasury Stock, Value | 0 | $ 0 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 2 | 2 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 640 | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (45) | (45) | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 16 | ||||||
Dividends, Common Stock | (132) | (132) | |||||
Stock Repurchased During Period, Value | (6) | (11) | $ (1) | ||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 2 | ||||||
Stock Repurchased During Period, Shares | 1,000,000 | ||||||
Cost of Repurchased Shares for Tax Wittholding for Share Based Compensation | (4) | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (32) | (28) | |||||
NET INCOME ATTRIBUTABLE TO COVANTA HOLDING CORPORATION | (4) | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (32) | ||||||
Less: Net income attributable to noncontrolling interests in subsidiaries | 0 | ||||||
Shares, Outstanding | 136,000,000 | ||||||
Common Stock, Value, Issued | $ 14 | ||||||
Additional Paid in Capital | $ 807 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (62) | $ (62) | |||||
Retained Earnings (Accumulated Deficit) | (289) | $ (289) | |||||
Treasury Stock, Shares | 6,000,000 | ||||||
Treasury Stock, Value | (1) | $ (1) | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | $ 0 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 469 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Notes To Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The terms “we,” “our,” “ours,” “us” and “Company” refer to Covanta Holding Corporation and its subsidiaries; the term “Covanta Energy” refers to our subsidiary Covanta Energy, LLC and its subsidiaries. Organization Covanta is one of the world’s largest owners and operators of infrastructure for the conversion of waste to energy (known as “energy-from-waste” or “EfW”), and also owns and operates related waste transport and disposal and other renewable energy production businesses. EfW serves two key markets as both a sustainable waste management solution that is environmentally superior to landfilling and as a source of clean energy that reduces overall greenhouse gas emissions and is considered renewable under the laws of many states and under federal law. Our facilities are critical infrastructure assets that allow our customers, which are principally municipal entities, to provide an essential public service. Our EfW facilities earn revenue from both the disposal of waste and the generation of electricity and/or steam, generally under contracts, as well as from the sale of metal recovered during the EfW process. We process approximately 20 million tons of solid waste annually. We operate and/or have ownership positions in 42 energy-from-waste facilities, which are primarily located in North America, and 5 additional energy generation facilities, including other renewable energy production facilities in North America (wood biomass and hydroelectric). In total, these assets produce approximately 10 million megawatt hours (“MWh”) of baseload electricity annually. We also operate a waste management infrastructure that is complementary to our core EfW business. We have one reportable segment, North America, which is comprised of waste and energy services operations located primarily in the United States and Canada. We are currently constructing an EfW facility in Dublin, Ireland, which we own and will operate upon completion. We hold interests in an energy-from-waste facility in Italy and an infrastructure business in China which is engaged in energy-from-waste operations. For additional information on our reportable segment, see Note 6. Financial Information by Business Segments . During 2016, we divested the majority of our investments in China. For additional information see Note 4. Dispositions, Assets Held for Sale and Discontinued Operations . Summary of Significant Accounting Policies The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The following is a description of our significant accounting policies. Principles of Consolidation The consolidated financial statements reflect the results of our operations, cash flows and financial position of our majority-owned or controlled subsidiaries. All intercompany accounts and transactions have been eliminated. Equity and Cost Method Investments Investments in unconsolidated entities over which we have significant influence are accounted for under the equity method of accounting. Investments in entities in which we do not have the ability to exert significant influence over the investees’ operating and financing activities are accounted for under the cost method of accounting. Cost-method investments are carried at historical cost unless indicators of impairment are identified. We monitor investments for other-than-temporary declines in value and make reductions when appropriate. For additional information on equity method investments, see Note 9. Equity Method Investments . For additional information on our cost method investment in China, see Note 4. Dispositions, Assets Held for Sale and Discontinued Operations . Revenue Recognition Our revenue is generated from the fees we earn for: waste disposal, operating energy-from-waste and independent power facilities, servicing project debt, and for waste transportation and processing; from the sale of electricity and steam; from the sale of recycled ferrous and non-ferrous metal; and from construction services. The fees charged for our services are generally defined in our service agreements and vary based on contract-specific terms. We generally recognize revenue as services are performed or products are delivered. For example, revenue typically is recognized as waste is received or processed at our facilities, metals are shipped from our sites or as kilowatts are delivered to a customer by an EfW facility or independent power production plant. Revenue under existing fixed-price or cost-plus construction contracts is recognized using the percentage-of-completion method, measured by the cost-to-cost method. If an arrangement involves multiple deliverables, the delivered items are considered separate units of accounting if the items have value on a stand-alone basis. Amounts allocated to each element are based on its objectively determined fair value, such as the sales price for the product or service when it is sold separately or competitor prices for similar products or services. Plant Operating Expense Plant operating expense includes facility employee costs, expense for materials and parts for facility scheduled and unscheduled maintenance and repair expense, which includes costs related to our internal maintenance team and non-facility employee costs. Plant operating expense also includes hauling and disposal expenses, fuel costs, chemicals and reagents, operating lease expense, and other facility operating related expense. Pass Through Costs Pass through costs are costs for which we receive a direct contractually committed reimbursement from the municipal client that sponsors an EfW project. These costs generally include utility charges, insurance premiums, ash residue transportation and disposal, and certain chemical costs. These costs are recorded net of municipal client reimbursements in our consolidated financial statements. Total pass through costs for the years ended December 31, 2016, 2015 and 2014 were $41 million , $52 million , and $59 million , respectively. Income Taxes Deferred income taxes are based on the difference between the financial reporting and tax basis of assets and liabilities. The deferred income tax provision represents the change during the reporting period in the deferred tax assets and deferred tax liabilities, net of the effect of acquisitions and dispositions. Deferred tax assets include tax losses and credit carryforwards and are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. We file a consolidated federal income tax return for each of the periods covered by the consolidated financial statements, which include all eligible United States subsidiary companies. Foreign subsidiaries are taxed according to regulations existing in the countries in which they do business. Our federal consolidated income tax return also includes the taxable results of certain grantor trusts, which are excluded from our consolidated financial statements; however, certain related tax attributes are recorded in our consolidated financial statements since they are part of our federal tax return. For additional information, see Note 15. Income Taxes . Stock-Based Compensation Stock-based compensation for share-based awards to employees is accounted for as compensation expense based on their grant date fair values. For additional information, see Note 17. Stock-Based Award Plans . Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments having maturities of three months or less from the date of purchase. These short-term investments are stated at cost, which approximates fair value. Balances held by our international subsidiaries are not generally available for near-term liquidity in our domestic operations. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of amounts due to us from normal business activities. Allowances for doubtful accounts are the estimated losses from the inability of customers to make required payments. We use historical experience, as well as current market information, in determining the estimate. Restricted Funds Held in Trust Restricted funds held in trust are primarily amounts received and held by third party trustees relating to certain projects we own. We generally do not control these accounts and these funds may be used only for specified purposes. These funds include debt service reserves for payment of principal and interest on project debt. Revenue funds are comprised of deposits of revenue received with respect to projects prior to their disbursement. Other funds include escrowed debt proceeds, amounts held in trust for operations, maintenance, environmental obligations, operating lease reserves in accordance with agreements with our clients, and amounts held for future scheduled distributions. Such funds are invested principally in money market funds, bank deposits and certificates of deposit, United States treasury bills and notes, United States government agency securities, and high-quality municipal bonds. Restricted fund balances are as follows (in millions): As of December 31, 2016 2015 Current Noncurrent Current Noncurrent Debt service funds - principal $ 10 $ 7 $ 9 $ 8 Debt service funds - interest 1 — 1 — Total debt service funds 11 7 10 8 Revenue funds 3 — 4 — Other funds 42 47 63 75 Total $ 56 $ 54 $ 77 $ 83 Deferred Revenue Deferred revenue included in Accrued expenses and other current liabilities on our consolidated balance sheet consisted of the following (in millions): As of December 31, 2016 2015 Advance billings to municipalities $ 5 $ 6 Other 11 7 Total $ 16 $ 13 Advance billings to certain customers are billed one or two months prior to performance of service and are recognized as income in the period the service is provided. Property, Plant and Equipment Property, plant, and equipment acquired in business acquisitions is recorded at our estimate of fair value on the date of the acquisition. Additions, improvements and major expenditures are capitalized if they increase the original capacity or extend the remaining useful life of the original asset more than one year. Maintenance repairs and minor expenditures are expensed in the period incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which generally range from three years for computer equipment to 50 years for certain infrastructure components of energy-from-waste facilities. Property, plant and equipment at our service fee operated facilities are not recognized on our balance sheet due to the adoption of the service concession arrangements guidance described in greater detail within the Accounting Pronouncements Recently Adopted discussion below . Any additions, improvements and major expenditures for which we are responsible at our service fee operated facilities are expensed in the period incurred. Our leasehold improvements are depreciated over the life of the lease term or the asset life, whichever is shorter. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the consolidated balance sheets and any gain or loss is reflected in the consolidated statements of operations. Property, plant and equipment consisted of the following (in millions): As of December 31, 2016 2015 Land $ 29 $ 22 Facilities and equipment 4,188 3,885 Landfills (primarily for ash disposal) 63 64 Construction in progress 433 266 Total 4,713 4,237 Less: accumulated depreciation and amortization (1,689 ) (1,547 ) Property, plant, and equipment — net $ 3,024 $ 2,690 Depreciation and amortization expense related to property, plant and equipment was $185 million , $177 million , and $191 million , for the years ended December 31, 2016, 2015 and 2014 , respectively. Non-cash investing activities related to capital expenditures for growth projects totaled $41 million and $26 million as of December 31, 2016 and 2015 , respectively and were recorded in accrued expenses and other current liabilities on our consolidated balance sheet. Property, plant and equipment is evaluated for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable over their estimated useful life. In reviewing for recoverability, we compare the carrying amount of the relevant assets to their estimated undiscounted future cash flows. When the estimated undiscounted future cash flows are less than the assets carrying amount, the carrying amount is compared to the assets fair value. If the assets fair value is less than the carrying amount an impairment charge is recognized to reduce the assets carrying amount to its fair value. For additional information, see Note 14. Supplementary Information - Impairment Charges . Asset Retirement Obligations We recognize a liability for asset retirement obligations when it is incurred, which is generally upon acquisition, construction, or development. Our liabilities include closure and post-closure costs for landfill cells and site restoration for certain energy-from-waste and power producing sites. We principally determine the liability using internal estimates of the costs using current information, assumptions, and interest rates, but also use independent appraisals as appropriate to estimate costs. When a new liability for asset retirement obligation is recorded, we capitalize the cost of the liability by increasing the carrying amount of the related long-lived asset. The liability is accreted to its present value each period and the capitalized cost is depreciated over the useful life of the related asset. We recognize period-to-period changes in the liability resulting from revisions to the timing or the amount of the original estimate of the undiscounted cash flows. Current and noncurrent asset retirement obligations are included in Accrued expenses and other current liabilities and Other liabilities, respectively, on our consolidated balance sheet. Our asset retirement obligation is presented as follows (in millions): As of December 31, 2016 2015 Beginning of period asset retirement obligation $ 30 $ 28 Accretion expense 2 2 Net change (1) (7 ) — End of period asset retirement obligation 25 30 Less: current portion — (3 ) Noncurrent asset retirement obligation $ 25 $ 27 (1) Comprised primarily of expenditures and settlements of the asset retirement obligation liability, net revisions based on current estimates of the liability and revised expected cash flows and life of the liability. Intangible Assets and Liabilities Our waste, service and energy contracts are intangible assets related to long-term operating contracts at acquired facilities. These intangible assets and liabilities, as well as lease interest and other finite and indefinite-lived intangible assets, are recorded at their estimated fair market values upon acquisition based primarily upon discounted cash flows in accordance with accounting standards related to business combinations. See Note 7. Amortization of Waste, Service and Energy Contracts and Note 8. Other Intangible Assets and Goodwill . Intangible assets with finite lives are evaluated for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable over their estimated useful life. In reviewing for recoverability, we compare the carrying amount of the relevant assets to their estimated undiscounted future cash flows. When the estimated undiscounted future cash flows are less than the assets carrying amount, the carrying amount is compared to the assets fair value. If the assets fair value is less than the carrying amount an impairment charge is recognized to reduce the assets carrying amount to its fair value. As of December 31, 2016, there were no indicators of impairment identified. Goodwill Goodwill is the excess of our purchase cost over the fair value of the net assets of acquired businesses. We do not amortize goodwill, but we assess our goodwill for impairment at least annually. We assess whether a goodwill impairment exists using both qualitative and quantitative assessments. When we elect to perform a qualitative assessment, it involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If based on this qualitative assessment we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if we did not elect to perform the qualitative assessment we will perform a quantitative assessment. A quantitative assessment of goodwill requires a comparison of the estimated fair value of the reporting unit to which the goodwill has been assigned to its carrying value. All goodwill is related to the North America reportable segment, which is comprised of two reporting units. A reporting unit is defined as an operating segment or a component of an operating segment to the extent discrete financial information is available that is reviewed by segment management. If the carrying value of the reporting unit exceeds the fair value, the reporting unit’s goodwill is compared to its implied value of goodwill. If the carrying value of the reporting unit’s goodwill exceeds the implied value, an impairment charge is recognized to reduce the carrying value to the implied value. There were no impairment charges recognized related to our evaluation of goodwill for the years ended December 31, 2016, 2015 and 2014 . Business Combinations We recognize the assets acquired and liabilities assumed in a business combination at fair value including any noncontrolling interest of the acquired entity; recognize any goodwill acquired; establish the acquisition-date fair value based on the highest and best use by market participants for the asset as the measurement objective; and disclose information needed to evaluate and understand the nature and financial effect of the business combination. We expense transaction costs directly associated to the acquisition as incurred; capitalize in-process research and development costs, if any; and record a liability for contingent consideration at the measurement date with subsequent remeasurement recognized in the results of operations. Any costs for business restructuring and exit activities related to the acquired company are included in the post-combination results of operations. Tax adjustments related to previously recorded business combinations, if any, are recognized in the results of operations. Accumulated Other Comprehensive Income ("AOCI") AOCI, in the consolidated statements of equity, includes unrealized gains and losses excluded from the consolidated statements of operations. These unrealized gains and losses consisted of the following (in millions): As of December 31, 2016 2015 Foreign currency translation $ (41 ) $ (34 ) Pension and other postretirement plan unrecognized net gain 2 2 Net unrealized loss on derivatives (23 ) (2 ) Accumulated other comprehensive loss $ (62 ) $ (34 ) The changes in accumulated other comprehensive (loss) income are as follows (in millions): Foreign Currency Translation Pension and Other Postretirement Plan Unrecognized Net Gain Net Unrealized Loss on Derivatives Total Balance December 31, 2014 $ (12 ) $ 2 $ (12 ) $ (22 ) Other comprehensive (loss) income before reclassifications (22 ) — 10 (12 ) Amounts reclassified from accumulated other comprehensive loss — — — — Net current period comprehensive (loss) income (22 ) — 10 (12 ) Balance December 31, 2015 $ (34 ) $ 2 $ (2 ) $ (34 ) Other comprehensive loss before reclassifications (2 ) — (21 ) (23 ) Amounts reclassified from accumulated other comprehensive loss (5 ) — — (5 ) Net current period comprehensive loss (7 ) — (21 ) (28 ) Balance December 31, 2016 $ (41 ) $ 2 $ (23 ) $ (62 ) Amount Reclassified from Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income Component Year Ended December 31, 2016 Affected Line Item in the Consolidated Statement of Operations Foreign currency translation $ 5 Gain on asset sales (1) 5 Total before tax — Tax benefit Total reclassifications $ 5 Net of tax (1) For additional information see, Note 4. Dispositions, Assets Held for Sale and Discontinued Operations . Derivative Instruments We recognize derivative instruments on the balance sheet at their fair value. The cash conversion option and note hedge were derivative instruments that were recorded at fair value quarterly with changes in fair value recognized in our consolidated statements of operations as non-cash convertible debt related expense. We have entered into swap agreements with various financial institutions to hedge our exposure to energy price risk and interest rate risk. Changes in the fair value of the energy derivatives and the interest rate swap are recognized as a component of AOCI. For additional information, see Note 13. Derivative Instruments . Foreign Currency Translation For foreign operations, assets and liabilities are translated at year-end exchange rates and revenue and expense are translated at the average exchange rates during the year. Unrealized gains and losses resulting from foreign currency translation are included in the consolidated statements of equity as a component of AOCI. Currency transaction gains and losses are recorded in other operating expense in the consolidated statements of operations. Pension and Postretirement Benefit Obligations Our pension and other postretirement benefit plans are accounted for based on actuarially-determined estimates. For additional information, see Note 16. Employee Benefit Plans . Share Repurchases Under our share repurchase program, common stock repurchases may be made, from time to time, in the open market, in privately negotiated transactions, or by other available methods, at management’s discretion and in accordance with applicable federal securities laws. The timing and amounts of any repurchases will depend on many factors, including our capital structure, the market price of our common stock and overall market conditions, and whether any restrictions then exist under our policies relating to trading in compliance with securities laws. Purchase price over par value for share repurchases are allocated to additional paid-in capital up to the weighted average amount per share recorded at the time of initial issuance of our common stock, with any excess recorded as a reduction to retained earnings. For additional information, see Note 5. Equity and Earnings Per Share ("EPS") . Use of Estimates The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts of assets or liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Significant estimates include: useful lives of long-lived assets, asset retirement obligations, construction expense estimates, unbilled service receivables, fair value of financial instruments, fair value of the reporting units for goodwill impairment analysis, fair value of long-lived assets for impairment analysis, renewable energy credits, stock-based compensation, purchase accounting allocations, cash flows and taxable income from future operations, deferred taxes, allowances for uncollectible receivables, and liabilities related to employee medical benefit obligations, workers’ compensation, severance and certain litigation. Reclassifications Certain amounts have been reclassified in our prior period consolidated balance sheet to conform to current year presentation and such amounts were not material to current and prior periods. During the year ended December 31, 2016, we concluded that it was appropriate to include Net interest expense on project debt within Interest expense, net on our consolidated statement of operations because such amounts were deemed immaterial. Previously, Net interest expense on project debt was reported separately, as a component of Operating expense. For the years ended December 31, 2015 and 2014, Net interest expense on project debt of $9 million and $10 million , respectively, was reclassified to Interest expense, net on our consolidated statement of operations and as a result, Operating income increased accordingly for those periods. Change in Estimate Revenue under our Durham York construction contract is recognized using the percentage-of-completion method, measured by the cost-to-cost method. We evaluate the estimate of our total construction costs for the contract throughout the life of the project and make revisions to our estimated costs as necessary. During the year ended December 31, 2015, we reduced our overall profit estimate related to this construction project by $20 million . The project was completed in 2015 and no further significant construction expenses were incurred related to this project. We are currently seeking to resolve outstanding disputes with our primary contractor for the Durham-York construction project, for additional information see Note 18. Commitments and Contingencies . Accounting Pronouncements Recently Adopted Effective January 1, 2016, we adopted guidance concerning the presentation of debt issuance costs, which are required to be presented as a direct reduction from the carrying amount of the related debt liability. We adopted this guidance retrospectively, which resulted in a reduction in our December 31, 2015 current and non-current asset balances of $5 million and $20 million , respectively, along with a corresponding reduction in current and long-term debt balances. The December 31, 2015 balance sheet includes certain costs for Dublin project financing within current assets for debt that has not yet been drawn down. For additional information, see Note 11. Consolidated Debt . Effective January 1, 2015, we were required to adopt guidance concerning service concession arrangements. The amendment applies to an operating entity of a service concession arrangement entered into with a public-sector entity grantor when the arrangement meets certain conditions. The amendments specify that such an arrangement may not be accounted for as a lease nor should the infrastructure used in a service concession arrangement be recognized as property, plant and equipment by the operating entity. Instead, the operating entity should refer to other guidance to account for the arrangement, such as Topic 605 of the Accounting Standard Codification - Revenue Recognition. We adopted this guidance using a modified retrospective approach which requires the cumulative effect of applying this guidance to arrangements existing at the beginning of the period of adoption be recognized as an adjustment to retained earnings. As a result, accumulated deficit as of January 1, 2015 as originally reported of $15 million increased by $45 million ( $75 million reduction of property, plant and equipment, net of tax of $30 million ) to $60 million . The adoption of this guidance had the following effect on our consolidated statement of operations for the year ended December 31, 2015 (in millions, except per share amounts): Increase (Decrease) Plant operating expense $ 31 Depreciation and amortization $ (22 ) Income tax expense $ (4 ) Net income attributable to Covanta Holding Corporation $ (5 ) Basic and Diluted income per share $ (0.04 ) Effective December 31, 2015, we early adopted the guidance, on a prospective basis, concerning simplified presentation of deferred income taxes by requiring that deferred tax assets and liabilities be classified as non-current in the statement of financial position. Adoption of this guidance resulted in reclassification of our net current deferred tax asset of $67 million to the net non-current deferred tax asset in our consolidated balance sheet as of December 31, 2015. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In January of 2017, the Financial Accounting Standards Board ("FASB") issued guidance clarifying the definition of a business to assist entities when determining whether an integrated set of assets and activities meets the definition of a business. The update provides that when substantially all the fair value of the assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this new guidance is not expected to have a material impact on our consolidated financial statements. In January of 2017, the FASB issued updated guidance to eliminate the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge (Step 2). As a result, an impairment charge will equal the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the amount of goodwill allocated to the reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendment should be applied on a prospective basis. The guidance is effective for goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests performed after January 1, 2017. The impact of this guidance for the Company will depend on the outcomes of future goodwill impairment tests. In November of 2016, the FASB issued guidance requiring that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The guidance is required to be adopted in the first quarter of 2018 on a retrospective basis. Adoption of this guidance will eliminate the disclosure of Change in restricted funds held in trust, which we currently include in Net cash provided by operating and Net cash provided by financing activities on our consolidated statement of cash flows. In October 2016, the FASB issued guidance requiring comprehensive recognition of current and deferred income taxes on intra-entity asset transfers other than inventory, which was previously prohibited. The guidance now requires us to recognize the tax expense from the intra-entity transfer of an asset when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. We are required to adopt this guidance in the first quarter of 2018 on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In August 2016, the FASB issued updated guidance on eight specific cash flow issues with regard to how cash receipts and cash payments are presented and classified in the statement of cash flows in order to clarify existing guidance and reduce diversity in practice. The guidance is required to be adopted in the first quarter of 2018 on a retrospective basis, unless it is impracticable to apply, in which case it should be applied prospectively as of the earliest date practicable. Early adoption is permitted. We are currently evaluating the impact this guidance will have on our consolidated statement of cash flows. In March 2016, the FASB issued amended guidance relating to employee share-based compensation. Under the new guidance we are required to recognize the tax effects of stock compensation as income tax expense or benefit in the income statement and treat the tax effects of exercised or vested awards as discrete items in the reporting period in which they occur. Excess tax benefits are required to be classified as operating activities, and shares we withhold on behalf of employees for tax purposes are required to be classified as financing activities. We may make an accounting policy election to continue to estimate the number of awards that are expected to vest or account for forfeitures when they occur. The threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates. This guidance is required to be adopted in the first quarter of 2017. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In February 2016, the FASB issued amended guidance for lease arrangements in order to increase transparency and comparability by providing additional information to users of financial statements regarding an entity's leasing activities. The revised guidance seeks to achieve this objective by requiring reporting entities to recognize lease assets and lease liabilities on the balance sheet for substantially all lease arrangements. The guidance, which is required to be adopted in the first quarter of 2019, will be applied on a modified retrospective basis beginning with the earliest period presented. Early adoption is permitted. We are currently evaluating the impact of adopting this guidance on our consolidated financial statements. In January 2016, the FASB issued accounting guidance that would require equity investments not accounted for as an equity method investment or that result in consolidation to be recorded at their fair value with changes in fair value recognized in our consolidated statements of operations. Those equity investments that do not have a readily determinable fair value may be measured at cost less impairment, if any, plus or minus changes resulting from observable price changes. This standard is required to be adopted in the first quarter of 2018, with early adoption prohibited. We are currently evaluating the impact this guidance will have on our consolidated financial statements and related disclosures. In May 2014, the FASB issued Accounting Standards update 2014-09, “Revenue from Contracts with Customers.” The standard is based on the principle that revenue is recognized in an amount expected to be collected and to which the entity expects to be entitled in exchange for the transfer of goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and certainty of revenue arising from contracts with customers. In August 2015, the FASB deferred the effective date by one year to January 1, 2018, while providing the option to early adopt the standard on the original effective date of January 1, 2017. Covanta will adopt the standard on January 1, 2018, as required. The standard can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently determining the impacts of the standard on our consolidated financial statements and are evaluating the options with respect to our transition method. Our implementation approach includes performing a detailed review of key contracts representative of the services that we provide and assessing the conformance of historical accounting policies and practices with the standard. Because the standard may impact our business processes, systems and controls, we have initiated the development of a comprehensive change management project plan to guide the implementation. |
NEW BUSINESS AND ASSET MANAGEME
NEW BUSINESS AND ASSET MANAGEMENT (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
New Business and Asset Management | NEW BUSINESS AND ASSET MANAGEMENT The acquisitions in the section below are not material to our consolidated financial statements individually or in the aggregate and therefore, disclosures of pro forma financial information have not been presented. The results of operations reflect the period of ownership of the acquired businesses, business development projects and dispositions. Environmental Services Acquisitions During 2016, we acquired two environmental services business, in separate transactions, for a total of $9 million . During 2015, we acquired four environmental services businesses (one of which was accounted for as an asset purchase), in separate transactions, for a total of $69 million . During 2014, we acquired one environmental services business for $13 million . These acquisitions expand our Covanta Environmental Solutions capabilities and client service offerings, and allow us to direct additional non-hazardous profiled waste volumes into our EfW facilities, and therefore are highly synergistic with our existing business. Pittsfield EfW Facilit y In March 2016, we exercised an early termination option available under the steam sale agreement at our Pittsfield EfW facility that would have been effective in March 2017. Upon termination of the steam agreement, we intended to cease operations at the Pittsfield facility. As a result, during the first quarter of 2016, we recorded a non-cash impairment charge of $13 million , pre-tax, which was calculated based on the estimated cash flows for this facility during its remaining operations utilizing Level 3 inputs. For more information regarding fair value measurements, see Note 12. Financial Instruments . In October 2016, we withdrew our termination notice. The City of Pittsfield has agreed to fund certain upgrades to the facility and the State of Massachusetts will provide energy tax credits, both of which will serve to improve the economics of the facility. In addition, we will continue to sell steam generated by the facility under an amended agreement. Dublin EfW Facility In 2014, we entered into agreements to build, own and operate the Dublin EfW facility, a 600,000 metric ton-per-year, 58 megawatt facility in Dublin, Ireland. The project will source residential, commercial and profiled waste from Dublin and the surrounding areas and will sell electricity into the local electricity grid, with over 50% of the facility’s generation expected to qualify for preferential pricing under Ireland’s renewable feed-in tariff. We commenced construction of the facility in the fourth quarter of 2014, with operational commencement expected in late-2017. We will operate the facility under a 45 -year public-private-partnership, after which ownership of the facility will transfer to the City of Dublin. Our total investment in the project is expected to be approximately €500 million , funded by project equity (approximately €125 million ) and third party non-recourse project financing ( €375 million ). For additional information related to funding for this project, see Note 11. Consolidated Debt - Dublin Project Financing. New York City Waste Transport and Disposal Contract In 2013, New York City's Department of Sanitation awarded us a contract to handle waste transport and disposal from two marine transfer stations located in Queens and Manhattan. We are utilizing capacity at existing facilities for the disposal of an estimated 800,000 tons per year of municipal solid waste. Service for the Queens marine transfer station began in early 2015, with service for the Manhattan marine transfer station expected to follow pending notice to proceed to be issued by New York City, which is anticipated in 2018. The contract is for 20 years, effective from the commencement of operations at the Queens marine transfer station in March 2015, with options for New York City to extend the term for two additional five-year periods, and requires waste to be transported using a multi-modal approach. We have acquired equipment, including barges, railcars, containers, and intermodal equipment to support this contract. We expect that our total initial investment will be approximately $150 million , including the cost to acquire equipment of approximately $114 million and approximately $36 million of enhancements to existing facilities that will be part of the network of assets supporting this contract. During the years ended December 31, 2016, 2015 and 2014 , we invested $3 million , $31 million and $59 million , respectively, in property, plant and equipment relating to this contract. Since 2013, we have invested a total of $115 million in property, plant and equipment relating to this contract. Pinellas County Energy-from-Waste Facility In 2014, we entered into a ten -year service fee contract to operate an existing 3,150 ton-per-day energy-from-waste facility located in Pinellas County, Florida, and we assumed operations of the facility in December of 2014. In addition to the annual service fee, during the initial few years of the contract we will complete a number of projects to improve operations of the facility. Our client will pay for these projects, for which we will record construction revenue and expense. Durham-York Energy-from-Waste Facility During 2011, we began construction of a municipally-owned 140,000 metric ton-per-year greenfield EfW facility located in Durham Region of Canada and owned by our municipal clients, the Durham and York Regions. We built the facility under the terms of a fixed-price construction contract totaling C$250 million . The project entered commercial operations in January 2016 under a 20 -year service fee contract. We are currently seeking to resolve outstanding disputes with our primary contractor for the Durham-York construction project, for additional information see Note 18. Commitments and Contingencies . |
DISPOSITIONS AND DISCONTINUED O
DISPOSITIONS AND DISCONTINUED OPERATIONS (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Dispositions [Abstract] | |
Dispositions and Discontinued Operations | DISPOSITIONS, ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS Dispositions China Investments Our interests in China included an 85% ownership of an EfW facility located in Jiangsu Province ("Taixing"), a 49% equity interest in an EfW facility located in Sichuan Province and a 40% equity interest in Chongqing Sanfeng Covanta Environmental Industry Co., a company located in the Chongqing Municipality that is engaged in the business of providing design and engineering, procurement, construction services and equipment sales for EfW facilities in China, as well as operating services for EfW facilities. During 2016, we completed the exchange of our project ownership interests in China for a 15% ownership interest in Chongqing Sanfeng Environmental Industrial Group, Co., Ltd ("Sanfeng Environment") and subsequently sold approximately 90% of that interest to a third-party, a subsidiary of CITIC Limited, a leading Chinese industrial conglomerate and investment company. As a result, during the year ended December 31, 2016, we recorded a pre-tax gain of $41 million . We received pre-tax proceeds of $105 million . The gain resulted from the excess of pre-tax proceeds over the cost-method book value of $70 million , plus $5 million of realized gains on the related cumulative foreign currency translation adjustment, that were reclassified out of other comprehensive income. Subsequent to completing the exchange, Sanfeng Environment has made certain claims for indemnification under the agreement related to the condition of the facility in Taixing. To the extent that any payment is made related to these claims, such amount could reduce the gain as recorded in a future period. In connection with these transactions, we entered into foreign currency exchange collars and forwards to hedge against rate fluctuations that impacted the cash proceeds in U.S. dollar terms. For more information, see Note 13. Derivative Instruments . As of December 31, 2016, our remaining cost-method investment in Sanfeng Environment totaled $7 million and was included in our consolidated balance sheet as a component of "Other assets". There were no impairment indicators related to our cost-method investment during the year ended December 31, 2016. Insurance Business During 2014, we sold our insurance subsidiary and recorded a non-cash impairment charge of $14 million comprised of the write-down of the carrying amount in excess of the realizable fair value of $12 million , plus $2 million in disposal costs. Assets Held for Sale Summary During the second quarter of 2015, we determined that the assets and liabilities associated with our interests in China met the criteria for classification as Assets Held for Sale, but did not meet the criteria for classification as Discontinued Operations. In making this determination, we evaluated our consolidated subsidiary, Taixing, as well as our Sanfeng and Chengdu equity method investments as a single disposal group under the applicable accounting guidance. The assets and liabilities associated with our China investments are presented in our consolidated balance sheets as current "Assets Held for Sale” and current "Liabilities Held for Sale.” The following table sets forth the assets and liabilities of the Assets Held for Sale included in the consolidated balance sheets as of the dates indicated (in millions): As of December 31, 2016 2015 Cash and cash equivalents $ — $ 2 Receivables — 3 Prepaid expenses and other current assets — 1 Property, plant and equipment, net — 49 Other noncurrent assets — 42 Assets held for sale $ — $ 97 Current portion of project debt $ — $ 3 Accounts payable — 3 Accrued expenses and other current liabilities — 5 Project debt — 12 Liabilities held for sale $ — $ 23 Discontinued Operations Summary During the fourth quarter of 2013, assets related to our development activities in the United Kingdom met the criteria to be presented in discontinued operations. The results of operations of these businesses for the year ended December 31, 2014 was comprised of Other operating revenue of $1 million and Other operating expense of $1 million . The cash flows of these businesses for the year ended December 31, 2014 were presented separately in our consolidated statements of cash flows. |
EQUITY AND EARNINGS PER SHARE (
EQUITY AND EARNINGS PER SHARE ("EPS") (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Equity and Earnings Per Share | EQUITY AND EARNINGS PER SHARE ("EPS") Equity In May 2014, the stockholders of the Company approved the Covanta Holding Corporation 2014 Equity Award Plan. For additional information, see Note 17. Stock-Based Award Plans . During the year ended December 31, 2016 , we granted awards of 761,426 shares of restricted stock, 888,144 of restricted stock units and withheld 210,438 shares of our common stock in connection with tax withholdings for vested stock awards. For information related to stock-based award plans, see Note 17. Stock-Based Award Plans . During the years ended December 31, 2016, 2015 and 2014 common shares repurchased and dividends declared were as follows (in millions, except per share amounts): For the Years Ended December 31, 2016 2015 2014 Total repurchases $ 18 $ 32 $ — Shares repurchased 1.2 2.1 — Weighted average cost per share $ 15.29 $ 15.33 $ — Dividends declared $ 132 $ 133 $ 114 Per share $ 1.00 $ 1.00 $ 0.86 As of December 31, 2016 , there were 136 million shares of common stock issued of which 130 million shares were outstanding; the remaining 6 million shares of common stock issued but not outstanding were held as treasury stock. As of December 31, 2016 , there were 4 million shares of common stock available for future issuance under equity plans. As of December 31, 2016 , there were 10 million shares of preferred stock authorized, with none issued or outstanding. The preferred stock may be divided into a number of series as defined by our Board of Directors. The Board of Directors are authorized to fix the rights, powers, preferences, privileges and restrictions granted to and imposed upon the preferred stock upon issuance. Earnings Per Share We calculate basic earnings per share ("EPS") using net earnings for the period and the weighted average number of outstanding shares of our common stock, par value $0.10 per share, during the period. Basic weighted average shares outstanding have decreased due to share repurchases. Diluted earnings per share computations, as calculated under the treasury stock method, include the weighted average number of shares of additional outstanding common stock issuable for stock options, restricted stock awards and restricted stock units whether or not currently exercisable. Diluted earnings per share does not include securities if their effect was anti-dilutive. Basic and diluted weighted average shares outstanding were as follows (in millions): For the Years Ended 2016 2015 2014 Basic weighted average common shares outstanding 129 132 130 Dilutive effect of restricted stock and restricted stock units (1) — 1 — Diluted weighted average common shares outstanding 129 133 130 (1) Excludes the following securities because their inclusion would have been anti-dilutive (in millions): For the Years Ended 2016 2015 2014 Stock options 1 1 1 Restricted stock 1 — 1 Restricted stock units 1 — — Warrants — — 25 In 2009, we issued warrants in connection with the issuance of 3.25% Cash Convertible Senior Notes that matured on June 1, 2014. The warrants were exercisable only at expiration in equal tranches over a 60 day period that began on September 2, 2014 and ended on November 26, 2014. The warrants were net share settled, which means that, with respect to any exercise date, we delivered to the warrant holders a number of shares for each warrant equal to the excess of the volume-weighted average price of our common stock on each exercise date over the then effective strike price of the warrants, divided by such volume-weighted average price of our common stock, with a cash payment in lieu of fractional shares. During the year ended December 31, 2014, 1,430,870 shares of our common stock were issued in connection with warrant exercises. For additional information see Note 11. Consolidated Debt - 3.25% Cash Convertible Senior Notes due 2014 . |
FINANCIAL INFORMATION BY BUSINE
FINANCIAL INFORMATION BY BUSINESS SEGMENTS (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
FINANCIAL INFORMATION BY BUSINESS SEGMENTS | FINANCIAL INFORMATION BY BUSINESS SEGMENTS We have one reportable segment, North America, which is comprised of waste and energy services operations located primarily in the United States and Canada. The results of our reportable segment are as follows (in millions): North America All Other (1) Total Year Ended December 31, 2016: Operating revenue $ 1,692 $ 7 $ 1,699 Depreciation and amortization expense $ 207 $ — $ 207 Impairment charges $ 20 $ — $ 20 Operating income (loss) $ 116 $ (7 ) $ 109 Interest expense, net $ 66 $ 72 $ 138 Gain on asset sales $ 3 $ 41 $ 44 Equity in net income from unconsolidated investments $ 1 $ 3 $ 4 As of December 31, 2016: Total assets $ 3,794 $ 490 $ 4,284 Capital additions $ 188 $ 171 $ 359 Year Ended December 31, 2015: Operating revenue $ 1,607 $ 38 $ 1,645 Depreciation and amortization expense $ 197 $ 1 $ 198 Impairment charges $ 43 $ — $ 43 Operating income $ 108 $ 1 $ 109 Interest expense, net $ 60 $ 74 $ 134 Equity in net income from unconsolidated investments $ — $ 13 $ 13 As of December 31, 2015: Total assets $ 3,838 $ 396 $ 4,234 Capital additions $ 175 $ 201 $ 376 Year Ended December 31, 2014: Operating revenue $ 1,641 $ 41 $ 1,682 Depreciation and amortization expense $ 208 $ 3 $ 211 Impairment charges $ 50 $ 14 $ 64 Operating income (loss) $ 168 $ (14 ) $ 154 Interest expense, net $ 63 $ 84 $ 147 Equity in net income from unconsolidated investments $ — $ 10 $ 10 As of December 31, 2014: Total assets $ 3,882 $ 297 $ 4,179 Capital additions $ 188 $ 28 $ 216 (1) All other is comprised of the financial results of our insurance subsidiaries’ operations through the date of disposal and our international assets. Our operations are principally located in the United States. See the list of projects for the North America segment in Item 1. Business. A summary of operating revenue and total assets by geographic area is as follows (in millions): United States Other Total Operating Revenue: Year Ended December 31, 2016 $ 1,677 $ 22 $ 1,699 Year Ended December 31, 2015 $ 1,589 $ 56 $ 1,645 Year Ended December 31, 2014 $ 1,567 $ 115 $ 1,682 United States Assets Held for Sale Other Total Total Assets: As of December 31, 2016 $ 3,763 $ — $ 521 $ 4,284 As of December 31, 2015 $ 3,847 $ 97 $ 290 $ 4,234 As of December 31, 2014 $ 3,802 $ 96 $ 281 $ 4,179 |
AMORTIZATION OF WASTE, SERVICE
AMORTIZATION OF WASTE, SERVICE AND ENERGY CONTRACTS (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
AMORTIZATION OF WASTE, SERVICE AND ENERGY CONTRACTS | AMORTIZATION OF WASTE, SERVICE AND ENERGY CONTRACTS Waste, Service and Energy Contracts Our waste, service and energy contracts are intangible assets and liabilities relating to long-term operating contracts at acquired facilities and are recorded upon acquisition at their estimated fair market values based upon discounted cash flows. Intangible assets and liabilities are amortized using the straight line method over their useful lives. Waste, service and energy contracts consisted of the following (in millions): As of December 31, 2016 As of December 31, 2015 Remaining Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Waste, service and energy contracts (asset) 22 years $ 526 $ 263 $ 263 $ 531 $ 247 $ 284 Waste and service contracts (liability) 3 years $ (131 ) $ (124 ) $ (7 ) $ (131 ) $ (118 ) $ (13 ) The following table details the amount of the actual/estimated amortization expense and contra-expense associated with these intangible assets and liabilities as of December 31, 2016 included or expected to be included in our consolidated statements of operations for each of the years indicated (in millions): Waste, Service and Energy Contracts (Amortization Expense) Waste and Service Contracts (Contra-Expense) Year ended December 31, 2016 $ 21 $ (6 ) 2017 14 (2 ) 2018 13 (2 ) 2019 13 (2 ) 2020 13 (1 ) 2021 13 — Thereafter 197 — Total $ 263 $ (7 ) The weighted average number of years prior to the next renewal period for contracts that we have an intangible recorded is 6 years. During the year ended December 31, 2014, we recorded non-cash impairment charges totaling $16 million related to service contract intangibles that were recorded upon acquisition in 2009. See Note 14. Supplementary Information - Impairment charges discussion for additional information. |
OTHER INTANGIBLE ASSETS AND GOO
OTHER INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2016 | |
OTHER INTANGIBLE ASSETS AND GOODWILL [Abstract] | |
Other Intangible Assets and Goodwill | OTHER INTANGIBLE ASSETS AND GOODWILL Other Intangible Assets Other intangible assets consisted of the following (in millions): As of December 31, 2016 As of December 31, 2015 Remaining Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships and other 8 years $ 43 $ 13 $ 30 $ 40 $ 6 $ 34 Other intangibles Indefinite 4 — 4 4 — 4 Other intangible assets, net $ 47 $ 13 $ 34 $ 44 $ 6 $ 38 The following table details the amount of the estimated amortization expense associated with other intangible assets as of December 31, 2016 expected to be included in our statements of operations for each of the years indicated (in millions): 2017 2018 2019 2020 2021 Thereafter Total Annual remaining amortization $ 5 $ 5 $ 5 $ 4 $ 3 $ 8 $ 30 Amortization expense related to other intangible assets was $6 million , $2 million and $1 million for the years ended December 31, 2016, 2015 and 2014 , respectively. Goodwill Goodwill represents the total consideration paid in excess of the fair value of the net tangible and identifiable intangible assets acquired and the liabilities assumed in acquisitions. Goodwill has an indefinite life and is not amortized but is reviewed for impairment under the provisions of accounting standards for goodwill. All goodwill is related to the North America reporting segment, which is comprised of two reporting units. We performed the required annual impairment review of our recorded goodwill for our reporting units as of October 1, 2016 and determined that the fair value of our reporting units was not less than their relative carrying values. As of December 31, 2016 , goodwill of approximately $56 million was deductible for federal income tax purposes. The following table details the changes in carrying value of goodwill (in millions): Total Balance as of December 31, 2014 $ 274 Goodwill related to acquisitions 27 Balance as of December 31, 2015 301 Goodwill related to acquisitions 1 Balance as of December 31, 2016 $ 302 |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 12 Months Ended |
Dec. 31, 2016 | |
EQUITY METHOD INVESTMENTS [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS Our subsidiaries are parties to agreements through which we have equity investments in several operating projects. The joint venture agreements generally provide for the sharing of operational control as well as voting percentages. We record our share of earnings from our equity investees in equity in net income from unconsolidated investments in our consolidated statements of operations. As of December 31, 2016 and 2015 , investments in investees and joint ventures accounted for under the equity method, included in Other assets on our consolidated balance sheet, were as follows (dollars in millions): Ownership Interest as of December 31, 2016 2016 Ownership Interest as of December 31, 2015 2015 South Fork Plant (U.S.) 50% $ — 50% $ — Koma Kulshan Plant (U.S.) 50% 4 50% 5 TARTECH (U.S.) (1) 50% 1 50% 5 Ambiente 2000 (Italy) 40% — 40% — Total investments in investees and joint ventures $ 5 $ 10 Investments in investees and joint ventures classified as held for sale: (2) Sanfeng (China) —% — 40% $ 17 Chengdu (China) —% — 49% 22 Total investments in investees and joint ventures classified as held for sale $ — $ 39 (1) During 2016, we recorded a net impairment of our investment in this joint venture, see Note 14. Supplementary Information for additional information. (2) During 2016, we divested the majority of our investments in China, see Note 4. Dispositions, Assets Held for Sale and Discontinued Operations for additional information. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Operating Leases | OPERATING LEASES Leases are primarily operating leases for leaseholds on EfW facilities, as well as for trucks and automobiles, office space and machinery and equipment. Some of these operating leases have renewal options. Expense under operating leases was $19 million , $16 million , and $15 million , for the years ended December 31, 2016, 2015 and 2014 , respectively. The following is a schedule, by year, of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2016 (in millions): 2017 2018 2019 2020 2021 Thereafter Total Future Minimum Rental Payments $ 8 $ 7 $ 6 $ 6 $ 6 $ 24 $ 57 |
CONSOLIDATED DEBT (Notes)
CONSOLIDATED DEBT (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Consolidated Debt | CONSOLIDATED DEBT Consolidated debt is as follows (in millions): As of December 31, 2016 2015 LONG-TERM DEBT: Revolving Credit Facility (2.98% - 3.23%) (1) $ 343 $ 348 Term Loan, net (2.48%) (1) 195 200 Credit Facilities Sub-total $ 538 $ 548 7.25% Senior Notes due 2020 $ 400 $ 400 6.375% Senior Notes due 2022 400 400 5.875% Senior Notes due 2024 400 400 Less: deferred financing costs related to senior notes (14 ) (16 ) Senior Notes Sub-total $ 1,186 $ 1,184 4.00% - 5.25% Tax-Exempt Bonds due from 2024 to 2045 $ 464 $ 464 Less: deferred financing costs related to tax-exempt bonds (5 ) (6 ) Tax-Exempt Bonds Sub-total $ 459 $ 458 3.48% - 4.52% Equipment financing capital leases due 2020 through 2027 $ 69 $ 73 Total long-term debt $ 2,252 $ 2,263 Less: current portion (9 ) (8 ) Noncurrent long-term debt $ 2,243 $ 2,255 PROJECT DEBT: North America project debt 4.00 - 5.00% North America Project Debt related to Service Fee structures due 2017 through 2035 $ 78 $ 117 Union capital lease due 2017 through 2053 99 — 5.248% - 6.20% North America Project Debt related to Tip Fee structures due 2017 through 2020 16 23 Unamortized debt premium, net 4 5 Less: deferred financing costs related to North America project debt (1 ) (1 ) Total North America project debt $ 196 $ 144 Other project debt: Dublin senior loan due 2021 (5.72% - 6.41%) (2) $ 155 $ — Debt discount related to Dublin senior loan (6 ) — Less: deferred financing costs related to Dublin senior loan (18 ) — Dublin senior loan, net $ 131 $ — Dublin junior loan due 2022 (9.23% - 9.73%) $ 58 $ 57 Debt discount related to Dublin junior loan (1 ) (1 ) Less: deferred financing costs related to Dublin junior loan (1 ) (2 ) Dublin junior loan, net $ 56 $ 54 Total other project debt, net 187 54 Total project debt 383 198 Less: Current portion, includes $1 and $1 of net unamortized premium (22 ) (16 ) Noncurrent project debt $ 361 $ 182 TOTAL CONSOLIDATED DEBT $ 2,635 $ 2,461 Less: Current debt (31 ) (24 ) TOTAL NONCURRENT CONSOLIDATED DEBT $ 2,604 $ 2,437 (1) Eurodollar rates only; excludes base rate borrowings. (2) Reflects hedged fixed rates. Credit Facilities Our subsidiary, Covanta Energy, has $1.2 billion in senior secured credit facilities consisting of a $1.0 billion revolving credit facility expiring 2019 through 2020 (the “Revolving Credit Facility”) and a $196 million term loan due 2020 (the “Term Loan”) (collectively referred to as the "Credit Facilities"). The Revolving Credit Facility is available for the issuance of letters of credit of up to $600 million , provides for a $50 million sub-limit for the issuance of swing line loans (a loan that can be requested in US Dollars on a same day basis for a short drawing period); and is available in US Dollars, Euros, Pounds Sterling, Canadian Dollars and certain other currencies to be agreed upon, in each case for either borrowings or for the issuance of letters of credit. The proceeds under the Revolving Credit Facility are available for working capital and general corporate purposes of Covanta Energy and its subsidiaries. We have the option to establish additional term loan commitments and/or increase the size of the Revolving Credit Facility (collectively, the “Incremental Facilities”), subject to the satisfaction of certain conditions and obtaining sufficient lender commitments, in an amount up to the greater of $500 million and the amount that, after giving effect to the incurrence of such Incremental Facilities, would not result in a leverage ratio, as defined in the credit agreement governing our Credit Facilities (the “Credit Agreement”), exceeding 2.75 :1.00. Availability under Revolving Credit Facility As of December 31, 2016 , we had availability under the Revolving Credit Facility as follows (in millions): Total Facility Commitment Expiring (1) Direct Borrowings as of Outstanding Letters of Credit as of Availability as of Revolving Credit Facility $ 1,000 2020 $ 343 $ 156 $ 501 (1) The Tranche B commitment of $50 million expires in March 2019. During the year ended December 31, 2016 , we made aggregate cumulative direct borrowings of $744 million under the Revolving Credit Facility, and repaid $749 million prior to the end of the year. Repayment Terms As of December 31, 2016 , the Term Loan has mandatory principal payments of $5 million in each year from 2017 through 2019 and $181 million in 2020. The Credit Facilities are pre-payable at our option at any time. Interest and Fees Borrowings under the Credit Facilities bear interest, at our option, at either a base rate or a Eurodollar rate plus an applicable margin determined by a pricing grid based on Covanta Energy’s leverage ratio. Base rate is defined as the higher of (i) the Federal Funds Effective Rate plus 0.50% , (ii) the rate the administrative agent announces from time to time as its per annum “prime rate” or (iii) the London Interbank Offered Rate (“LIBOR”), or a comparable or successor rate, plus 1.00% . Base rate borrowings under the Revolving Credit Facility bear interest at the base rate plus an applicable margin ranging from 0.75% to 1.75% . Eurodollar borrowings under the Revolving Credit Facility bear interest at LIBOR plus an applicable margin ranging from 1.75% to 2.75% . Fees for issuances of letters of credit include fronting fees equal to 0.15% per annum and a participation fee for the lenders equal to the applicable interest margin for LIBOR rate borrowings. We will incur an unused commitment fee ranging from 0.30% to 0.50% on the unused amount of commitments under the Revolving Credit Facility. Base rate borrowings under the Term Loan bear interest at the base rate plus an applicable margin ranging from 0.75% to 1.00% . Eurodollar borrowings under the Term Loan bear interest at LIBOR plus an applicable margin ranging from 1.75% to 2.00% . Guarantees and Securitization The Credit Facilities are guaranteed by us and by certain of our subsidiaries. The subsidiaries that are party to the Credit Facilities agreed to secure all of the obligations under the Credit Facilities by granting, for the benefit of secured parties, a first priority lien on substantially all of their assets, to the extent permitted by existing contractual obligations. The Credit Facilities are also secured by a pledge of substantially all of the capital stock of each of our domestic subsidiaries and 65% of substantially all the capital stock of each of our directly-owned foreign subsidiaries, in each case to the extent not otherwise pledged. Credit Agreement Covenants The loan documentation governing the Credit Facilities contains various affirmative and negative covenants, as well as financial maintenance covenants, that limit our ability to engage in certain types of transactions. We were in compliance with all of the affirmative and negative covenants under the Credit Facilities as of December 31, 2016 . The negative covenants of the Credit Facilities limit our and our restricted subsidiaries’ ability to, among other things: • incur additional indebtedness (including guarantee obligations); • create certain liens against or security interests over certain property; • pay dividends on, redeem, or repurchase our capital stock or make other restricted junior payments; • enter into agreements that restrict the ability of our subsidiaries to make distributions or other payments to us; • make investments; • consolidate, merge or transfer all or substantially all of our assets and the assets of our subsidiaries on a consolidated basis; • dispose of certain assets; and • make certain acquisitions. The financial maintenance covenants of the Credit Facilities, which are measured on a trailing four quarter period basis, include the following: • a maximum Leverage Ratio of 4.00 to 1.00 for the trailing four quarter period, which measures the principal amount of Covanta Energy’s consolidated debt less certain restricted funds dedicated to repayment of project debt principal and construction costs (“Consolidated Adjusted Debt”) to its adjusted earnings before interest, taxes, depreciation and amortization, as calculated in the Credit Agreement (“Adjusted EBITDA”). The definition of Adjusted EBITDA in the Credit Facilities excludes certain non-recurring and non-cash charges. • a minimum Interest Coverage Ratio of 3.00 to 1.00, which measures Covanta Energy’s Adjusted EBITDA to its consolidated interest expense plus certain interest expense of ours, to the extent paid by Covanta Energy as calculated in the Credit Agreement. Senior Notes and Debentures 7.25% Senior Notes due 2020 (the “7.25% Notes”) In 2010, we sold $400 million aggregate principal amount of 7.25% Senior Notes due 2020. Interest on the 7.25% Notes is payable semi-annually on June 1 and December 1 of each year, commencing on June 1, 2011 and the 7.25% Notes will mature on December 1, 2020 unless earlier redeemed or repurchased. At our option, the 7.25% Notes are subject to redemption at any time, in whole or in part, at the redemption prices set forth in the indenture, together with accrued and unpaid interest, if any, to the date of redemption. The 7.25% Notes are senior unsecured obligations, ranking equally in right of payment with any of the future senior unsecured indebtedness of Covanta Holding Corporation. The 7.25% Notes are effectively junior to our existing and future secured indebtedness, including any guarantee of indebtedness under the Credit Facilities. The 7.25% Notes are not guaranteed by any of our subsidiaries and are effectively subordinated to all existing and future indebtedness and other liabilities of our subsidiaries. The indenture for the 7.25% Notes may limit our ability and the ability of certain of our subsidiaries to: • incur additional indebtedness; • pay dividends or make other distributions or repurchase or redeem their capital stock; • prepay, redeem or repurchase certain debt; • make loans and investments; • sell restricted assets; • incur liens; • enter into transactions with affiliates; • alter the businesses they conduct; • enter into agreements restricting our subsidiaries’ ability to pay dividends; and • consolidate, merge or sell all or substantially all of their assets. If and for so long as the 7.25% Notes have an investment grade rating and no default under the indenture has occurred, certain of the covenants will be suspended. If we sell certain of our assets or experience specific kinds of changes in control, we must offer to purchase the 7.25% Notes. The occurrence of specific kinds of changes in control will be a triggering event requiring us to offer to purchase from the holders all or a portion of the 7.25% Notes at a price equal to 101% of their principal amount, together with accrued and unpaid interest, if any, to the date of purchase. In addition, certain asset dispositions will be triggering events that may require us to use the proceeds from those asset dispositions to make an offer to purchase the 7.25% Notes at 100% of their principal amount, together with accrued and unpaid interest, if any, to the date of purchase if such proceeds are not otherwise used within 365 days to repay indebtedness or to invest or commit to invest such proceeds in additional assets related to our business or capital stock of a restricted subsidiary. 6.375% Senior Notes due 2022 (the “6.375% Notes”) In March 2012, we sold $400 million aggregate principal amount of 6.375% Senior Notes due 2022. Interest on the 6.375% Notes is payable semi-annually on April 1 and October 1 of each year, commencing on October 1, 2012, and the 6.375% Notes will mature on October 1, 2022 unless earlier redeemed or repurchased. Net proceeds from the sale of the 6.375% Notes were $392 million , consisting of gross proceeds of $400 million net of $8 million in offering expenses. We used a portion of the net proceeds of the 6.375% Notes offering to repay a portion of the amounts outstanding under Covanta Energy’s previously existing term loan. At our option, the 6.375% Notes are subject to redemption at any time on or after April 1, 2017, in whole or in part, at the redemption prices set forth in the indenture, together with accrued and unpaid interest, if any, to the date of redemption. In addition, at any time prior to April 1, 2017, we may redeem some or all of the 6.375% Notes at a price equal to 100% of their principal amount, plus accrued and unpaid interest, plus a “make-whole premium”. Other terms and conditions of the 6.375% Notes, including guarantees and security, covenants, and repurchase requirements in the case of certain asset sales or a change of control, are substantially similar to those described above under 7.25% Notes 5.875% Senior Notes due 2024 (the "5.875% Notes") In March 2014, we sold $400 million aggregate principal amount of 5.875% Senior Notes due March 2024 . Interest on the 5.875% Notes is payable semi-annually on March 1 and September 1 of each year, commencing on September 1, 2014 , and the 5.875% Notes will mature on March 1, 2024 unless earlier redeemed or repurchased. Net proceeds from the sale of the 5.875% Notes were approximately $393 million , consisting of gross proceeds of $400 million net of approximately $7 million in offering expenses. We used the net proceeds of the 5.875% Notes offering in part for the repayment of the 3.25% Cash Convertible Notes at maturity on June 1, 2014 . The 5.875% Notes are subject to redemption at our option, at any time on or after March 1, 2019, in whole or in part, at the redemption prices set forth in the prospectus supplement, plus accrued and unpaid interest. At any time prior to March 1, 2017, we may redeem up to 35% of the original principal amount of the 5.875% Notes with the proceeds of certain equity offerings at a redemption price of 105.875% of the principal amount of the 5.875% Notes plus accrued and unpaid interest. At any time prior to March 1, 2019, we may also redeem the 5.875% Notes, in whole but not in part, at a price equal to 100% of the principal amount of the 5.875% Notes, plus accrued and unpaid interest and a “make-whole premium.” Other terms and conditions of the 5.875% Notes, including guarantees and security, covenants, and repurchase requirements in the case of certain asset sales or a change of control, are substantially similar to those described above under 7.25% Notes. 3.25% Cash Convertible Senior Notes due 2014 (the “3.25% Notes”) In 2009, we issued $460 million aggregate principal amount of the 3.25% Notes due in 2014 in a private transaction exempt from registration under the Securities Act of 1933, as amended. We used the net proceeds from the offering for general corporate purposes, including capital expenditures, permitted investments or permitted acquisitions. On June 1, 2014 , we repaid the $460 million 3.25% Notes utilizing net proceeds from the March 2014 5.875% Notes issuance. During the period from March 1, 2014 to May 30, 2014, and under certain additional limited circumstances, the 3.25% Notes were cash convertible by holders thereof (the "Cash Conversion Option"). The conversion rate was 64.6669 shares of our common stock (which represented a conversion price of approximately $15.46 per share) for the period from March 17, 2014 through March 21, 2014, and 65.3501 shares of our common stock (which represented a conversion price of approximately $15.30 per share), as adjusted for the dividend paid on April 2, 2014, for the period from March 24, 2014 to May 30, 2014. We did not deliver common stock (or any other securities) upon conversion. Upon maturity, we were required to pay $83 million to satisfy the obligation under the Cash Conversion Option in addition to the principal amount of the 3.25% Notes. In connection with the issuance of 3.25% Notes offering, we entered into privately negotiated cash convertible note hedge transactions (the “Note Hedge”) with affiliates of certain of the initial purchasers of the 3.25% Notes which we cash-settled for $83 million upon maturity of the 3.25% Notes and effectively offset our liability under the Cash Conversion Option. In connection with the issuance of the 3.25% Notes, we also sold warrants, correlating to the number of shares underlying the 3.25% Notes. The warrants were exercisable only at expiration in equal tranches over a 60 day period which began on September 2, 2014 and ended on November 26, 2014. During the year ended December 31, 2014, 1,430,870 shares of our common stock were issued in connection with warrant exercises. In November 2012, we issued tax-exempt corporate bonds totaling $335 million . Proceeds from the offerings were utilized to refinance tax-exempt project debt at our Haverhill, Niagara and SEMASS facilities, as well as to fund certain capital expenditures in Massachusetts. Approximately $7 million of financing costs were incurred, of which $3 million was expensed and $4 million will be recognized over the term of the debt. In August 2015, we issued two new series of fixed rate tax-exempt corporate bonds totaling $130 million . Proceeds from the offerings were utilized to refinance tax-exempt project debt at our Delaware Valley facility and to fund certain capital improvements at our Essex County facility. Financing costs were not material. Details of the issues and the use of proceeds are as follows (dollars in millions): Series Amount Maturity Coupon Use of Proceeds Massachusetts Series 2012A $ 20 2027 4.875% New proceeds for qualifying capital expenditures in Massachusetts Massachusetts Series 2012B 67 2042 4.875% Redeem SEMASS project debt Massachusetts Series 2012C 82 2042 5.25% Redeem Haverhill project debt Niagara Series 2012A 130 2042 5.25% Redeem Niagara project debt Niagara Series 2012B 35 2024 4.00% Redeem Niagara project debt New Jersey Series 2015A 90 2045 5.25% Finance qualifying expenditures at Essex County facility Pennsylvania Series 2015A 40 2043 5.00% Refinance outstanding tax-exempt debt $ 464 We entered into a loan agreement with the Massachusetts Development Finance Agency under which they issued the Resource Recovery Revenue Bonds (the “Massachusetts Series” bonds in the table above) and loaned the proceeds of the Massachusetts Series bonds to us for the purposes of (i) financing qualifying capital expenditures at certain solid waste disposal facilities in Massachusetts and (ii) redeeming the outstanding principal balance of the SEMASS and Haverhill project debt. We entered into a loan agreement with the Niagara Area Development Corporation under which they issued the Solid Waste Disposal Facility Refunding Revenue Bonds (the “Niagara Series” bonds in the table above) and loaned the proceeds of the Niagara Series bonds to us for the purpose of redeeming the outstanding principal balance of the Niagara project debt. The Massachusetts Series bonds and the Niagara Series bonds are obligations of Covanta Holding Corporation, are guaranteed by Covanta Energy; and are not secured by project assets. Principal and interest on the Massachusetts Series bonds and the Niagara Series bonds are payable from the repayments we make to the Massachusetts Development Finance Agency and Niagara Area Development Corporation, respectively, pursuant to the respective loan agreements. The Massachusetts Series bonds and the Niagara Series bonds bear interest at the interest rates per annum set forth in the table above, payable semi-annually on May 1 and November 1 of each year, commencing on May 1, 2013. We entered into a loan agreement with the Essex County Improvement Authority under which they issued the Solid Waste Disposal Revenue Bonds (the “New Jersey Series” bonds in the table above) and loaned the proceeds to us for the purposes of financing capital improvements at our Essex County facility, including a new emissions control system. Interest on the bonds is paid semi-annually on January 1 and July 1 of each year beginning on January 1, 2016. Interest expense incurred during the construction period will be capitalized. We entered into a loan agreement with the Delaware County Industrial Development Authority under which they issued the Refunding Revenue Bonds (the “Pennsylvania Series” bonds in the table above) and loaned the proceeds to us for the purpose of redeeming the outstanding $34 million principal amount of the Variable Rate Bonds and of refinancing $6 million of project debt due on July 1, 2015 at our Delaware Valley facility. See Variable Rate Tax-Exempt Demand Bonds due 2043 below. Interest on the bonds is paid semi-annually on January 1 and July 1 of each year beginning on January 1, 2016. Each of the loan agreements contains customary events of default, including failure to make any payments when due, failure to perform its covenants under the respective loan agreement, and the bankruptcy or insolvency. Additionally, each of the loan agreements contains cross-default provisions that relate to our other indebtedness. Upon the occurrence of an event of default, the unpaid balance of the loan under the applicable loan agreement will become due and payable immediately. The Massachusetts Series bonds and the Niagara Series bonds contain certain terms including mandatory redemption requirements in the event that (i) the respective loan agreement is determined to be invalid, or (ii) the respective bonds are determined to be taxable. In the event of a mandatory redemption of the bonds, we will have an obligation under each respective loan agreement to prepay the respective loan in order to fund the redemption. Tax-Exempt Variable Rate Demand Bonds due 2043 ("Variable Rate Bonds") In July 2013 and 2014, we issued $22 million and $12 million , respectively of tax-exempt corporate variable-rate demand bonds, which were secured by a letter of credit issued under our Revolving Credit Facility and had a maturity date of July 1, 2043. Proceeds from the offering were utilized to refinance project debt at our Delaware Valley facility due through July 1, 2014. In August 2015, we refinanced the $34 million of outstanding Variable Rate Bonds with a portion of the net proceeds of the $40 million Pennsylvania Series 2015A bonds due 2043. See 4.00% - 5.25% Tax-Exempt Bonds due from 2024-2045 above. Union County EfW Capital Lease Arrangement In June 2016, we extended the lease term related to the Union County EfW facility through 2053, which resulted in capital lease treatment for the revised lease. We recorded a lease liability of $104 million , calculated utilizing an incremental borrowing rate of 5.0% which is included in long-term project debt on our consolidated balance sheet. The lease includes certain periods of contingent rentals based upon plant performance as either a share of revenue or a share of plant profits. These contingent payments have been excluded from the calculation of the lease liability and instead will be treated as a period expense when incurred. As of December 31, 2016 , the outstanding borrowings under the capital lease have mandatory amortization payments remaining as follows (in millions): 2017 2018 2019 2020 2021 Thereafter Annual Remaining Amortization $ 5 $ 5 $ 5 $ 6 $ 6 $ 72 Equipment Financing Capital Lease Arrangements In 2014, we entered into equipment financing capital lease arrangements to finance the purchase of barges, railcars, containers and intermodal equipment related to our New York City contract. The lease terms range from 10 years to 12 years and the fixed interest rates range from 3.48% to 4.52% . The outstanding borrowings under the equipment financing capital lease arrangements were $69 million as of December 31, 2016 , and have mandatory amortization payments remaining as follows (in millions): 2017 2018 2019 2020 2021 Thereafter Annual Remaining Amortization $ 5 $ 5 $ 5 $ 5 $ 5 $ 44 Depreciation associated with these capital lease arrangements is included in Depreciation and amortization expense on our consolidated statement of operations. For additional information see Note 1. Organization and Summary of Significant Accounting Policies - Property, Plant and Equipment . PROJECT DEBT The maturities of long-term project debt as of December 31, 2016 are as follows (in millions): 2017 2018 2019 2020 2021 Thereafter Total Less: Current Portion Total Noncurrent Project Debt Debt $ 22 $ 31 $ 26 $ 17 $ 144 $ 166 $ 406 $ (22 ) $ 384 Premium and deferred financing costs (5 ) (5 ) (5 ) (5 ) (4 ) 1 (23 ) — (23 ) Total $ 17 $ 26 $ 21 $ 12 $ 140 $ 167 $ 383 $ (22 ) $ 361 Project debt associated with the financing of energy-from-waste facilities is arranged by municipal entities through the issuance of tax-exempt and taxable revenue bonds or other borrowings. For those facilities we own, that project debt is recorded as a liability on our consolidated financial statements. Generally, debt service for project debt related to Service Fee structures is the primary responsibility of municipal entities, whereas debt service for project debt related to Tip Fee structures is paid by our project subsidiary from project revenue expected to be sufficient to cover such expense. Payment obligations for our project debt associated with energy-from-waste facilities are generally limited recourse to the operating subsidiary and non-recourse to us, subject to operating performance guarantees and commitments. These obligations are typically secured by the revenue pledged under the respective indentures and by a mortgage lien and a security interest in the respective energy-from-waste facility and related assets. As of December 31, 2016 , such revenue bonds were collateralized by property, plant and equipment with a net carrying value of $669 million and restricted funds held in trust of approximately $84 million . In April 2015, in connection with a long-term service fee contract extension at our Onondaga County facility, our Onondaga County client refinanced $42 million of outstanding project debt with $54 million of new tax-exempt bonds issued with a $5 million premium. The incremental proceeds were used to establish a $15 million restricted cash fund to be used toward facility projects and to satisfy $2 million in transaction costs which will be deferred and amortized over the term of the bonds. The bonds bear interest from 4.00% to 5.00% and have scheduled annual payments with final maturity on May 1, 2035. Consistent with other service fee projects we own and have project debt in place, the client community will pay us debt service revenue equivalent to the principal and interest on the bonds. Dublin Project Financing During 2014, we executed agreements for project financing totaling €375 million to fund a majority of the construction costs of the Dublin EfW facility. The project financing package includes: (i) €300 million of project debt under a credit facility agreement with various lenders (the “Dublin Credit Agreement”), which consists of a €250 million senior secured term loan (the “Dublin Senior Term Loan”) and a €50 million second lien term loan (the “Dublin Junior Term Loan”), and (ii) a €75 million convertible preferred investment (the “Dublin Convertible Preferred”), which was committed by a leading global energy infrastructure investor. For additional information related to this project, see Note 3. New Business and Asset Management . Dublin Senior Term Loan due 2021 As of December 31, 2016, $155 million ( €147 million ) of the €250 million Dublin Senior Term Loan has been drawn and is included in project debt on our consolidated balance sheet. The remainder of the Dublin Senior Term Loan is expected to be drawn over the course of 2017 to fund remaining construction costs. Key commercial terms of the Dublin Senior Term Loan include: • Final maturity on September 30, 2021 (approximately four years after the anticipated operational commencement date of the facility). • Scheduled repayments will be made semi-annually according to a 15-year amortization profile, beginning in 2018. The loan is pre-payable at our option following operational commencement. • Borrowings will bear interest at the Euro Interbank Offered Rate ("EURIBOR") plus an applicable margin, which will range from 4.00% to 4.50% according to a pre-determined schedule. Interest on outstanding borrowings will be payable in cash monthly prior to the operational commencement date of the facility, and payable in cash semi-annually after the operational commencement date, based on the prevailing one and six month EURIBOR rates, respectively. Undrawn commitments will accrue commitment fees at a rate of 2.25% per annum. We entered into interest rate swap agreements in order to hedge our exposure to adverse variable interest rate fluctuations under the Dublin Senior Term Loan. For additional information, see Note 13. Derivative Instruments . • The Dublin Senior Term Loan is a senior obligation of the project company and certain other related subsidiaries, all of which are wholly-owned by us, and is secured by a first priority lien on substantially all of the project-related assets. The Dublin Senior Term Loan is non-recourse to us and our subsidiary Covanta Energy. See Note 18. Commitments and Contingencies for a description of the commitments of Covanta Energy related to the Dublin project financing. • The Dublin Credit Agreement contains positive, negative and financial maintenance covenants that are customary for a project financing of this type. Our ability to service the Dublin Junior Term Loan and the Dublin Convertible Preferred and to make cash distributions to common equity following the operational commencement date is subject to ongoing compliance with these covenants, including maintaining a minimum debt service coverage ratio and loan life coverage ratio on the Dublin Senior Term Loan. Dublin Junior Term Loan due 2022 The €50 million Dublin Junior Term Loan was funded into an escrow account in September 2014 and was utilized in 2015 to fund construction costs as our initial equity investment into the project and the Dublin Convertible Preferred were fully utilized. As of December 31, 2016 , $58 million ( €55 million ), inclusive of interest accrued to the balance of the loan, is included in project debt on our consolidated balance sheet. Key commercial terms of the Dublin Junior Term Loan include: • Final maturity on March 31, 2022 (six months after the maturity of the Dublin Senior Term Loan). • Scheduled repayments will be made semi-annually according to a 15-year amortization profile, beginning in 2018. The loan is pre-payable at our option following operational commencement. • Borrowings bear interest at a fixed rate of 5.23% during the first six months of the loan, and thereafter at fixed rates ranging from 9.23% to 9.73% according to a pre-determined schedule. Interest on outstanding borrowings is payable semi-annually and will be payable 50% in cash and 50% accrued to the balance of the loan prior to the operational commencement date of the facility, and payable 100% in cash after the operational commencement date. • The Dublin Junior Term Loan is a junior obligation of the project company and certain other related subsidiaries, all of which are wholly-owned by us, and is secured by a second priority lien on substantially all of the project-related assets and a first priority lien on the assets of the top tier project holding company. The Dublin Junior Term Loan is non-recourse to us and our subsidiary Covanta Energy. • Under the Dublin Credit Agreement, our ability to service the Dublin Convertible Preferred and to make cash distributions to common equity is subject to ongoing compliance with the covenants under the agreement, including maintaining a minimum debt service coverage ratio and loan life coverage ratio on the Dublin Junior Term Loan. Dublin Convertible Preferred The €75 million Dublin Convertible Preferred was utilized to fund construction costs in 2015 after our initial equity investment into the project was fully utilized. As of December 31, 2016, the Dublin convertible preferred instrument of $87 million , ( €83 million ) inclusive of dividends accrued to the balance, was included in other noncurrent liabilities in our consolidated balance sheet. The instrument has: (i) a liquidation preference equal to par value of the investment, (ii) a preferred claim on project cash flows during operations (after debt service) to pay a fixed dividend rate and repay principal according to an amortization schedule, and (iii) an option to convert loan principal into a common equity interest in the project. The Dublin Convertible Preferred is structured as a shareholder loan (the “Stakeholder Loan”) with the concurrent issuance of warrants (the “Stakeholder Warrants”). Key commercial terms of the Dublin Convertible Preferred include: |
FINANCIAL INSTRUMENTS (Notes)
FINANCIAL INSTRUMENTS (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Notes To Financial Statements [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Fair Value Measurements Authoritative guidance associated with fair value measurements provides a framework for measuring fair value and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs), then significant other observable inputs (Level 2 inputs) and the lowest priority to significant unobservable inputs (Level 3 inputs). The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • For cash and cash equivalents, restricted funds, and marketable securities, the carrying value of these amounts is a reasonable estimate of their fair value. The fair value of restricted funds held in trust is based on quoted market prices of the investments held by the trustee. • Fair values for long-term debt and project debt are determined using quoted market prices. • The fair value for interest rate swaps were determined by obtaining quotes from two counterparties (one is a holder of the long position and the other is in the short) and extrapolating those across the long and short notional amounts. The fair value of the interest rate swaps was adjusted to reflect counterparty risk of non-performance, and was based on the counterparty’s credit spread in the credit derivatives market. • The fair values of our energy hedges were determined using the spread between our fixed price and the forward curve information available within the market. • The fair value of our foreign currency hedge was determined by obtaining quotes from two counterparties and is based on market accepted option pricing methodology which utilizes inputs such as the currency spot rate as of the balance sheet date, the strike price of the options and volatility. The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we would realize in a current market exchange. The fair-value estimates presented herein are based on pertinent information available to us as of December 31, 2016 . Such amounts have not been comprehensively revalued for purposes of these financial statements since December 31, 2016 , and current estimates of fair value may differ significantly from the amounts presented herein. The following financial instruments are recorded at their estimated fair value. The following table presents information about the recurring fair value measurement of our assets and liabilities as of December 31, 2016 and 2015 : As of December 31, Financial Instruments Recorded at Fair Value on a Recurring Basis: Fair Value Measurement Level 2016 2015 (In millions) Assets: Cash and cash equivalents: Bank deposits and certificates of deposit 1 $ 79 $ 89 Money market funds 1 5 5 Total cash and cash equivalents: 84 94 Restricted funds held in trust: Bank deposits and certificates of deposit 1 12 9 Money market funds 1 36 66 U.S. Treasury/agency obligations (1) 1 14 18 State and municipal obligations 1 46 59 Commercial paper/guaranteed investment contracts/repurchase agreements 1 2 8 Total restricted funds held in trust: 110 160 Investments: Mutual and bond funds (2) 1 2 2 Derivative asset — energy hedges (3) 2 3 21 Total assets: $ 199 $ 277 Liabilities: Derivative liability — energy hedges (4) 2 $ 1 $ — Derivative liability — interest rate swaps (4) (5) 2 20 14 Total liabilities: $ 21 $ 14 The following financial instruments are recorded at their carrying amount (in millions): As of December 31, 2016 As of December 31, 2015 Financial Instruments Recorded at Carrying Amount: Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Accounts receivables (6) $ 333 $ 333 $ 314 $ 314 Liabilities: Long-term debt $ 2,252 $ 2,237 $ 2,263 $ 2,244 Project debt $ 383 $ 387 $ 198 $ 206 (1) The U.S. Treasury/agency obligations in restricted funds held in trust are primarily comprised of Federal Home Loan Mortgage Corporation securities at fair value. (2) Included in other noncurrent assets in the consolidated balance sheets. (3) Included in prepaid expenses and other current assets in the consolidated balance sheets. (4) Included in accrued expenses and other current liabilities in the consolidated balance sheets. (5) Included in other noncurrent liabilities in the consolidated balance sheets. (6) Includes $1 million and $2 million of noncurrent receivables in other noncurrent assets in the consolidated balance sheets as of December 31, 2016 and 2015 . In addition to the recurring fair value measurements, certain assets are measured at fair value on a non-recurring basis when an indication of impairment is identified and the assets fair value is determined to be less than its carrying value. See Note 14. Supplementary Information - Impairment Charges for additional information. |
DERIVATIVE INSTRUMENTS (Notes)
DERIVATIVE INSTRUMENTS (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The following disclosures summarize the fair value of derivative instruments not designated as hedging instruments in the consolidated balance sheets and the effect of changes in fair value related to those derivative instruments not designated as hedging instruments on the consolidated statements of operations (in millions): Derivative Instruments Not Designated As Hedging Instruments Fair Value as of December 31, Balance Sheet Location 2016 2015 Asset Derivatives: Foreign currency hedges Prepaid expenses and other current assets $ — $ 6 Amount of Gain (Loss) Recognized In Income on Derivatives Effect on Income of Derivative Instruments Not Designated As Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivatives For the Years Ended December 31, 2016 2015 2014 Foreign currency hedge Other expense, net $ (2 ) $ 6 $ — Note hedge Non-cash convertible debt related expense — — 5 Cash conversion option Non-cash convertible debt related expense — — (5 ) Effect on income of derivative instruments not designated as hedging instruments $ (2 ) $ 6 $ — Foreign Currency Hedge In order to hedge the risk of adverse foreign currency exchange rate fluctuations impacting the expected sale proceeds from our equity transfer agreement in China (See Note 4. Dispositions, Assets Held for Sale and Discontinued Operations ), we entered into a foreign currency exchange collar with two financial institutions covering approximately $100 million of notional to protect against further rate fluctuations pending the sale of our ownership interest to CITIC, which was completed during September 2016. The foreign currency hedge is accounted for as a derivative instrument and, as such, was recorded at fair value quarterly with any change in fair value recognized in our consolidated statements of operations as other expense, net. During the twelve months ended December 31, 2016 , cash provided by foreign currency exchange settlements totaled $5 million and was included in net cash used in investing activities on our condensed consolidated statement of cash flows. As of December 31, 2016 , we received $105 million of gross sale proceeds relating to the aforementioned sale of our ownership interests to CITIC and therefore, settled or canceled remaining foreign currency exchange derivatives related to this hedged transaction, resulting in a current asset balance of zero. As of December 31, 2015 , the fair value of the foreign currency exchange derivatives of $6 million , pre-tax, was recorded as a current asset. We have also entered into foreign currency forwards to manage foreign currency exchange rate fluctuations associated with a series of fixed payments to be made by an international subsidiary through the end of 2017. This foreign currency forward is accounted for as a derivative instrument at fair value in our consolidated balance sheet with any changes in fair value recognized in our consolidated statements of operations as "Other expense, net." This derivative instrument was not material to our consolidated statement of operations nor was it material to our condensed consolidated balance sheet as of December 31, 2016 . Cash Conversion Option, Note Hedge and Contingent Interest features related to the 3.25% Cash Convertible Senior Notes The cash conversion option was a derivative instrument which was recorded at fair value quarterly with any change in fair value being recognized in our consolidated statements of operations as non-cash convertible debt related expense. The note hedge was accounted for as a derivative instrument and, as such, was recorded at fair value quarterly with any change in fair value being recognized in our consolidated statements of operations as non-cash convertible debt related expense. The 3.25% Notes matured on June 1, 2014. Upon maturity, we were required to pay $83 million to satisfy the obligation under the cash conversion option in addition to the principal amount of the 3.25% Notes. The note hedge settled for $83 million and effectively offset our exposure to the cash payments in excess of the principal amount made under the cash conversion option. The income recognized as a result of changes in the credit valuation adjustment related to the note hedge was not material. Energy Price Risk Following the expiration of certain long-term energy sales contracts, we may have exposure to market risk, and therefore revenue fluctuations, in energy markets. We have entered into contractual arrangements that will mitigate our exposure to short-term volatility through a variety of hedging techniques, and will continue to do so in the future. Our efforts in this regard will involve only mitigation of price volatility for the energy we produce, and will not involve taking positions (either long or short) on energy prices in excess of our physical generation. The amount of energy generation for which we have hedged under agreements with various financial institutions is indicated in the following table (in millions): Calendar Year Hedged MWh 2017 2.4 2018 1.0 Total 3.4 As of December 31, 2016 , the net fair value of the energy derivatives of $2 million , pre-tax, was recorded as a $3 million current asset and a $1 million noncurrent liability and as a component of AOCI. As of December 31, 2016 , the amount of hedge ineffectiveness was not material. The net fair value energy derivative balance of $2 million includes a natural gas hedge transaction of 1.3 million British Thermal Units to mitigate exposure to short-term volatility in certain contracted steam prices during the 2017 calendar year. As of December 31, 2015 , the fair value of the energy derivatives of $21 million , pre-tax, was recorded as a current asset and as a component of AOCI. The change in fair value was recorded as a component of comprehensive income. During the twelve months ended December 31, 2016 , cash provided by and used in energy derivative settlements of $32 million and zero , respectively, was included in net cash provided by operating activities on our consolidated statement of cash flows. During the twelve months ended December 31, 2015 , cash provided by and used in energy derivative settlements of $17 million and $7 million , respectively, was included in the change in net cash provided by operating activities on our consolidated statement of cash flows. Interest Rate Swaps In order to hedge the risk of adverse variable interest rate fluctuations associated with the Dublin senior term loan, we have entered into floating to fixed rate swap agreements with various financial institutions maturing between 2017 and 2021 , denominated in Euros, for the full €250 million loan amount. This interest rate swap is designated as a cash flow hedge which is recorded at fair value with changes in fair value recorded as a component of AOCI. As of December 31, 2016 , the fair value of the interest rate swap derivative of $20 million , pre-tax, was recorded as a $2 million and $18 million current and noncurrent liability, respectively. There was an immaterial amount of ineffectiveness recorded during the quarter recognized in our consolidated statements of operations as interest expense. As of December 31, 2015 , the fair value of the interest rate swap derivative of $14 million, pre-tax, was recorded as a noncurrent liability. |
SUPPLEMENTARY INFORMATION (Note
SUPPLEMENTARY INFORMATION (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
SUPPLEMENTARY INFORMATION | SUPPLEMENTARY INFORMATION Other Operating Expense, net Plymouth Energy-from-Waste Facility In May 2016, our Plymouth energy-from-waste facility experienced a turbine generator failure. Damage to the turbine generator was extensive and operations at the facility were suspended promptly to assess the cause and extent of damage. The facility is capable of processing waste without utilizing the turbine generator to generate electricity, and we resumed waste processing operations in early June. The facility resumed generating electricity early in the first quarter of 2017, after the generator and other damaged equipment were replaced. The cost of replacement and business interruption losses were insured under the terms of applicable insurance policies, subject to deductibles. During the year ended December 31, 2106, we recorded insurance recoveries in our consolidated statements of operations, related to this matter, as follows (in millions): Insurance recoveries for repair and reconstruction costs (net of write-down of assets, reduction to Other operating expense, net) $ 5 Insurance recoveries for business interruption and clean-up costs, net of costs incurred (reduction to Plant operating expense) $ 3 Impairment Charges The components of impairment charges are as follows (in millions): For the Years Ended 2016 2015 2014 North America segment: Impairment charges related to tangible and intangible assets (1) $ 16 $ — $ 16 Impairment charges related to biomass facilities and biomass equity investment (2) — 43 34 Impairment charges - other 4 — — North America segment sub-total: 20 43 50 Other: Impairment charge related to insurance business (3) — — 14 Total impairment charges $ 20 $ 43 $ 64 (1) Impairment charges related to tangible and intangible assets are related to the following: • During the year ended December 31, 2016, we recorded a non-cash impairment charge of $13 million , pre-tax, related to the previously planned closure of our Pittsfield EfW facility which is now expected to continue operating. For additional information see Note 3. New Business and Asset Management . We also recorded a non-cash impairment charge of $3 million , pre-tax, related to a joint-venture project, see Tartech Investment discussion below. • On June 30, 2014, our service agreement with the Dutchess County Resource Recovery Agency under which we operated the Hudson Valley EfW facility expired. In 2014, we recorded a $9 million non-cash impairment charge of the intangible asset that was recorded upon acquisition in 2009 based on the expected cash flows over the remaining life of the contract utilizing Level 3 inputs. • On April 3, 2014, the Montgomery County (PA) Commissioners (the “County”) unanimously voted to dissolve the Waste System Authority of Eastern Montgomery County (the “WSA”). The Abington transfer station was constructed by the County and subsequently deeded to the WSA, which was responsible for its operation. We operated the transfer station through the end of the current contract, which expired on December 31, 2014. However, due to the dissolution of the WSA, it was not able to renew our current contract to operate the Abington transfer station. During the year ended December 31, 2014, we recorded a non-cash impairment charge of $7 million of the service contract intangible with the WSA that was recorded upon acquisition in 2009 based on the expected cash flows over the remaining life of the contract utilizing Level 3 inputs. (2) Impairments related to our biomass assets are as follows: • During the year ended 2015, we identified indicators of impairment associated with our biomass facilities, primarily due to a decline in energy market pricing. As a result of these developments, we recorded a non-cash impairment charge of $43 million , pre-tax, which was calculated based on a range of potential outcomes utilizing various estimated cash flows for these facilities utilizing Level 3 inputs. • During year ended December 31, 2014, we identified indicators of impairment associated with our California Biomass facilities, primarily that we were unsuccessful in securing new long-term power purchase agreements to replace the current power purchase agreements, which were approaching the end of their terms. Based on expected cash flows utilizing Level 3 inputs, we recorded a non-cash impairment charge of $34 million to reduce the carrying value of the California Biomass assets to their estimated fair value. (3) During 2014, we sold our insurance subsidiaries and recorded a non-cash impairment of $14 million comprised of the write-down of the carrying amount in excess of the realizable fair value of $12 million , plus $2 million in disposal costs. Tartech Investment We are party to a joint venture that was formed to recover and recycle metals from EfW ash monofills in North America. During the year ended December 31, 2016, due to operational difficulties and the decline in the scrap metal market, a valuation of the entity was conducted. As a result, we recorded a net impairment of our investment in this joint venture of $3 million , pre-tax, which represents our portion of the carrying value of the entity in excess of the fair value. Such amount was calculated based on the estimated liquidation value of the tangible equipment utilizing Level 3 inputs. For more information regarding fair value measurements, see Note 12. Financial Instruments . Non-Cash Convertible Debt Related Expense The components of non-cash convertible debt related expense are as follows (in millions): For the Years Ended 2016 2015 2014 Debt discount accretion related to the 3.25% Notes $ — $ — $ 13 Fair value changes related to the cash convertible note hedge — — (5 ) Fair value changes related to the cash conversion option derivative — — 5 Total non-cash convertible debt related expense $ — $ — $ 13 Selected Supplementary Balance Sheet Information Selected supplementary balance sheet information is as follows (in millions): As of December 31, 2016 2015 Prepaid expenses $ 28 $ 37 Hedge receivables 3 25 Spare parts 21 17 Renewable energy credits 3 15 Other 17 23 Total prepaid expenses and other current assets $ 72 $ 117 Operating expenses, payroll and related expenses $ 164 $ 114 Deferred revenue 16 13 Accrued liabilities to client communities 19 22 Interest payable 30 24 Dividends payable 35 34 Other 25 27 Total accrued expenses and other current liabilities $ 289 $ 234 |
INCOME TAXES (Notes)
INCOME TAXES (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
INCOME TAXES | NOTE 15. INCOME TAXES We file a federal consolidated income tax return with our eligible subsidiaries. Our federal consolidated income tax return also includes the taxable results of certain grantor trusts described below. The components of income tax expense were as follows (in millions): For the Years Ended December 31, 2016 2015 2014 Current: Federal $ (2 ) $ (91 ) $ (1 ) State 6 16 4 Foreign (2 ) 2 3 Total current 2 (73 ) 6 Deferred: Federal 28 7 (4 ) State (9 ) (11 ) 16 Foreign 1 (7 ) (3 ) Total deferred 20 (11 ) 9 Total income tax expense (benefit) $ 22 $ (84 ) $ 15 Domestic and foreign pre-tax income (loss) was as follows (in millions): For the Years Ended December 31, 2016 2015 2014 Domestic $ 26 $ 6 $ 14 Foreign (12 ) (34 ) (10 ) Total $ 14 $ (28 ) $ 4 The effective income tax rate was 150% , 302% , and 388% for the years ended December 31, 2016, 2015 and 2014 , respectively. The decrease in effective tax rate for the year ended December 31, 2016, compared to the year ended December 31, 2015 is primarily due to the combined effects of (i) the recognition of tax benefit due to the resolution of the IRS audit in 2015 and (ii) the fact that the Company turned from pre-tax loss in 2015 to pre-tax income in 2016, offset by the uncertain tax positions recorded in 2016. The decrease in the effective tax rate for the year ended December 31, 2015, compared to the year ended December 31, 2014 was primarily due to the recognition of tax benefit due to the resolution of the IRS audit in 2015 and non-recurring adjustments from the prior year. A reconciliation of our income tax expense (benefit) at the federal statutory income tax rate of 35% to income tax expense (benefit) at the effective tax rate is as follows (in millions): For the Years Ended December 31, 2016 2015 2014 Income tax expense (benefit) at the federal statutory rate $ 5 $ (10 ) $ 1 State and other tax expense 1 1 8 Tax rate differential on foreign earnings 4 8 5 Permanent differences 4 4 4 Production tax credits/R&E tax credits — (3 ) (4 ) State ITC credit (4 ) — — Change in valuation allowance 2 (7 ) 3 Liability for uncertain tax positions 16 (82 ) 5 Adjustment to deferred tax (5 ) 4 (9 ) Other (1 ) 1 2 Total income tax expense (benefit) $ 22 $ (84 ) $ 15 We had consolidated federal NOLs estimated to be approximately $288 million for federal income tax purposes as of the end of 2016 . These consolidated federal NOLs will expire, if not used, in the following amounts in the following years (in millions): Amount of Carryforward Expiring 2028 $ 64 2030 29 2031 1 2032 1 2033 193 $ 288 In addition to the consolidated federal NOLs, as of December 31, 2016 , we had state NOL carryforwards of approximately $291 million , which expire between 2028 and 2035 , net foreign NOL carryforwards of approximately $227 million expiring between 2017 and 2036 . The federal tax credit carryforwards include production tax credits of $47 million expiring between 2024 and 2036 , and minimum tax credits of $7 million with no expiration. Additionally, we had state income tax credit of $1 million . The corresponding deferred tax assets are offset by a valuation allowance of approximately $71 million . The tax effects of temporary differences that give rise to the deferred tax assets and liabilities are presented as follows (in millions): As of December 31, 2016 2015 Deferred tax assets: Capital loss carryforward $ — $ 3 Net operating loss carryforwards 143 157 Accrued expenses 20 24 Prepaid and other costs 71 36 Deferred tax assets attributable to pass-through entities 17 17 Retirement benefits 3 — Other 4 4 AMT and other credit carryforwards 55 67 Total gross deferred tax asset 313 308 Less: valuation allowance (71 ) (73 ) Total deferred tax asset 242 235 Deferred tax liabilities: Unbilled accounts receivable 3 4 Property, plant and equipment 780 725 Intangible assets 36 18 Deferred tax liabilities attributable to pass-through entities 22 26 Deferred gain on convertible debt 13 20 Swap income — 2 Prepaid expenses — 23 Other, net 5 11 Total gross deferred tax liability 859 829 Net deferred tax liability $ 617 $ 594 Cumulative undistributed foreign earnings for which United States taxes were not provided were included in consolidated retained earnings in the amount of approximately $257 million and $264 million as of December 31, 2016 and 2015 , respectively. Such amounts are considered permanently invested, therefore no provision for U.S. income taxes has been accrued. Determination of the unrecognized deferred tax liability for these undistributed foreign earnings is not practicable. Deferred tax assets relating to employee stock based compensation deductions were reduced to reflect exercises of non-qualified stock option grants and vesting of restricted stock. Some exercises of non-qualified stock option grants and vesting of restricted stock resulted in tax deductions in excess of previously recorded benefits resulting in a "windfall". Although these additional deductions were reported on the corporate tax returns and increased NOLs, these related tax benefits were not recognized for financial reporting purposes. These windfalls will not be recognized until the related deductions result in a reduction of taxes payable and cash tax payments. Accordingly, since the tax benefit does not reduce our current taxes payable, these tax benefits were not reflected in deferred tax assets for financial reporting purposes as of December 31, 2016 and 2015 . Such benefits included in NOLs but not reflected in deferred tax assets were approximately $26 million as of both December 31, 2016 and 2015 . A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Balance at December 31, 2013 $ 128 Additions based on tax positions related to the current year 8 Additions for tax positions of prior years — Reductions for lapse in applicable statute of limitations (3 ) Reductions for tax positions of prior years — Balance at December 31, 2014 133 Additions based on tax positions related to the current year 12 Additions for tax positions of prior years — Reductions for lapse in applicable statute of limitations — Reductions for tax positions of prior years (109 ) Balance at December 31, 2015 36 Additions based on tax positions related to the current year 16 Additions for tax positions of prior years 4 Reductions for lapse in applicable statute of limitations (3 ) Reductions for tax positions of prior years (4 ) Payment (6 ) Balance at December 31, 2016 $ 43 The uncertain tax positions, exclusive of interest and penalties, were $43 million and $36 million as of December 31, 2016 and 2015 , respectively, which also represent potential tax benefits that if recognized, would impact the effective tax rate. We record interest accrued on liabilities for uncertain tax positions and penalties as part of the tax provision. As of December 31, 2016 and 2015 , we had accrued interest and penalties associated with liabilities for uncertain tax positions of $3 million and $1 million , respectively. We continue to reflect interest accrued and penalties on uncertain tax positions as part of the tax provision. Audits for federal income tax returns are closed for the years through 2009. However, the Internal Revenue Service ("IRS") can audit the NOL's generated during those years in the years that the NOL's are utilized. State income tax returns are generally subject to examination for a period of three to six years after the filing of the respective tax return. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. We have various state income tax returns in the process of examination, administrative appeals or litigation. Our NOLs predominantly arose from our predecessor insurance entities, formerly named Mission Insurance Group, Inc., (“Mission”). These Mission insurance entities have been in state insolvency proceedings in California and Missouri since the late 1980's. The amount of NOLs available to us will be reduced by any taxable income or increased by any taxable losses generated by current members of our consolidated tax group, which include grantor trusts associated with the Mission insurance entities. While we cannot predict what amounts, if any, may be includable in taxable income as a result of the final administration of these grantor trusts, substantial actions toward such final administration have been taken and we believe that neither arrangements with the California Commissioner of Insurance nor the final administration by the Missouri Director will result in a material reduction in available NOLs. |
EMPLOYEE BENEFIT PLANS (Notes)
EMPLOYEE BENEFIT PLANS (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We sponsor various retirement plans covering the majority of our employees and retirees in the United States, as well as other postretirement benefit plans for a small number of retirees in the United States that include healthcare benefits and life insurance coverage. Employees in the United States not participating in our retirement plans generally participate in retirement plans offered by collective bargaining units of which these employees are members. The majority of our international employees participate in defined benefit or defined contribution retirement plans as required or available in accordance with local laws. Defined Contribution Plans Substantially all of our employees in the United States are eligible to participate in the defined contribution plans we sponsor. The defined contribution plans allow employees to contribute a portion of their compensation on a pre-tax basis in accordance with specified guidelines. We match a percentage of employee contributions up to certain limits. We also provide a company contribution to the defined contribution plans for eligible employees. Our costs related to defined contribution plans were $17 million , $16 million and $16 million for the years ended December 31, 2016, 2015 and 2014 , respectively. Pension and Postretirement Benefit Obligations In 2012, the IRS approved our plan to terminate the qualified defined benefit pension plan. During 2013, $35 million of annuity contracts were purchased on behalf of participants who elected an annuity option and we recorded a pre-tax defined benefit pension plan settlement gain of $6 million , which was recorded as other operating income in our consolidated statements of operations. Such annuity purchase concluded the termination of the defined benefit pension plan, accordingly, we have no future obligations related to the qualified defined benefit pension plan. The discount rate for the non-qualified pension plans was 4.10% , 4.35% and 4.05% for the years ended December 31, 2016, 2015 and 2014 , respectively. For the other postretirement benefit plan, an annual rate of increase of 7.0% in the per capita cost of health care benefits was assumed for 2016 for covered employees. An average increase of 7.0% was assumed for 2017. The average increase was then projected to gradually decline to 5.0% in 2022 and remain at that level. In general, assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one-percentage point change (either increase or decrease) in the assumed health care trend rate would have an immaterial (approximately $0.2 million ) effect on either total service and interest cost components or postretirement benefit obligations. For the pension plans with accumulated benefit obligations in excess of plan assets, the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets were $1 million , $1 million and $0 , respectively, as of December 31, 2016 and $4 million , $4 million , and $0 , respectively, as of December 31, 2015 . As of December 31, 2016 , we estimate that the future benefits payable over the next ten years for the retirement and postretirement plans in place are $1 million for pension benefits, $2 million for other benefits (net of Medicare Part D subsidy) and $0 million for attributable to Medicare Part D subsidy. Pension costs for our defined benefit plans and other post-retirement benefit plans were not material. Obligation and Funded Status The following table is a reconciliation of the changes in the benefit obligations and fair value of assets for our non-qualified defined benefit pension plan and other postretirement benefit plan, the funded status (using a December 31 measurement date) of the plans and the related amounts recognized in our consolidated balance sheets (in millions, except percentages as noted): Non-qualified Pension Benefits Other Benefits For the Years Ended December 31, For the Years Ended December 31, 2016 2015 2016 2015 Change in benefit obligation: Benefit obligation at beginning of year $ 4 $ 4 $ 4 $ 5 Actuarial gain — — (1 ) (1 ) Benefits paid (3 ) — — — Benefit obligation at end of year $ 1 $ 4 $ 3 $ 4 Change in plan assets: Plan assets at fair value at beginning of year $ — $ — $ — $ — Contributions 3 — — — Benefits paid (3 ) — — — Plan assets at fair value at end of year $ — $ — $ — $ — Reconciliation of accrued benefit liability and net amount recognized: Funded status of the plan $ (1 ) $ (4 ) $ (3 ) $ (4 ) Unrecognized net gain — — — — Net amount recognized $ (1 ) $ (4 ) $ (3 ) $ (4 ) Accumulated other comprehensive income recognized: Net actuarial gain $ — $ — $ (4 ) $ (4 ) Net prior service cost (1 ) (1 ) — — Total as of December 31, $ (1 ) $ (1 ) $ (4 ) $ (4 ) Weighted average assumptions used to determine net periodic benefit expense for years ending December 31: Discount rate 4.35 % 4.05 % 3.75 % 3.50 % Weighted average assumptions used to determine projected benefit obligations as of December 31: Discount rate 4.10 % 4.35 % 3.55 % 3.75 % |
STOCK-BASED AWARD PLANS
STOCK-BASED AWARD PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Award Plans | STOCK-BASED AWARD PLANS Stock-Based Award Plans In May 2014, the stockholders of the Company approved the Covanta Holding Corporation 2014 Equity Award Plan (the “Plan”) to provide incentive compensation to non-employee directors, officers and employees, and to consolidate the two previously existing equity compensation plans into a single plan: the Company’s Equity Award Plan for Employees and Officers (the “Former Employee Plan”) and the Company’s Equity Award Plan for Directors (the “Former Director Plan,” and together with the Former Employee Plan, the “Former Plans”). Shares that were available for issuance under the Former Plans will be available for issuance under the Plan. The stockholders of the Company also approved the authorization of 6 million new shares of our common stock for issuance under the Plan. The purpose of the Plan is to promote our interests (including our subsidiaries and affiliates) and our stockholders’ interests by using equity interests to attract, retain and motivate our management, non-employee directors and other eligible persons and to encourage and reward their contributions to our performance and profitability. The Plan provides for awards to be made in the form of (a) shares of restricted stock, (b) restricted stock units, (c) incentive stock options, (d) non-qualified stock options, (e) stock appreciation rights, (f) performance awards, or (g) other stock-based awards which relate to or serve a similar function to the awards described above. Awards may be made on a standalone, combination or tandem basis. Stock-Based Compensation We recognize compensation costs using the graded vesting attribution method over the requisite service period of the award, which is generally three to five years. We recognize compensation expense based on the number of stock options, restricted stock awards and restricted stock units expected to vest by using an estimate of expected forfeitures. We review the forfeiture rates at least annually and revise compensation expense, if necessary. During 2016 , the average forfeiture rates were 12% for restricted stock awards and 15% for restricted stock units. Stock-based compensation expense is as follows (in millions, except for weighted average years): As of December 31, 2016 Total Compensation Expense for the Years Ended December 31, Unrecognized stock-based compensation expense Weighted-average years to be recognized 2016 2015 2014 Restricted Stock Awards $ 10 $ 11 $ 11 $ 7 1.4 Restricted Stock Units $ 6 $ 6 $ 6 $ 8 2.1 Restricted Stock Awards Restricted stock awards that have been issued to employees typically vest over a three -year period. Restricted stock awards are stock-based awards for which the employee or director does not have a vested right to the stock (“nonvested”) until the requisite service period has been rendered or the required financial performance factor has been reached for each pre-determined vesting date. Stock-based compensation expense for each financial performance factor is recognized beginning in the period when management has determined it is probable the financial performance factor will be achieved for the respective vesting period. The fair value of shares vested during the year was $9 million . Restricted stock awards to employees are subject to forfeiture if the employee is not employed on the vesting date. Restricted stock awards issued to directors are not subject to forfeiture in the event a director ceases to be a member of the Board of Directors, except in limited circumstances. Restricted stock awards will be expensed over the requisite service period, subject to an estimated forfeiture rate. Prior to vesting, restricted stock awards have all of the rights of common stock (other than the right to sell or otherwise transfer, when issued). We calculate the fair value of share-based stock awards based on the closing price on the date the award was granted. During 2016 we awarded certain employees 752,426 shares of restricted stock. The restricted stock awards will be expensed over the requisite service period, subject to an estimated 12% average forfeiture rate. The terms of the restricted stock awards include vesting provisions based solely on continued service. If the service criteria are satisfied, the restricted stock awards vest generally during March of 2017, 2018, and 2019. During 2016, we awarded 9,000 shares of restricted stock for annual director compensation. We determined that the service vesting condition of these restricted stock awards to be non-substantive and, in accordance with accounting principles for stock compensation, recorded the entire fair value of the award as compensation expense on the grant date. Changes in nonvested restricted stock awards were as follows (in thousands, except per share amounts): As of December 31, 2016 2015 2014 Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Nonvested at the beginning of the year 1,060 $ 19.79 1,240 $ 17.67 1,166 $ 17.85 Granted 761 $ 15.14 573 $ 21.88 721 $ 17.20 Vested (532 ) $ 19.36 (661 ) $ 17.69 (608 ) $ 17.27 Forfeited (69 ) $ 17.51 (92 ) $ 19.36 (39 ) $ 17.80 Nonvested at the end of the year 1,220 $ 17.20 1,060 $ 19.79 1,240 $ 17.67 Restricted Stock Units In 2010, we awarded restricted stock units (“RSUs”) to certain employees in connection with specified growth-based acquisitions or development projects. Vesting of the RSUs is based on the net present value of projected cash flows of the applicable acquisition or development project, calculated as of the award date versus the vesting date. Vesting will occur after at least three years have passed following an acquisition or upon the later of three years from the grant date or one year following the commencement of commercial operations for development projects. For certain stock unit awards, dividends accrue prior to vesting and are paid when the awards vest. We calculate the fair value of share-based stock awards based on the closing price on the date the award was granted. In January, 2016, we awarded certain employees 356,622 RSUs related to a special retention bonus that will vest after a three-year period. In March, 2016, we awarded certain employees 471,381 RSUs, 390,728 of which will vest based upon the Company’s cumulative Free Cash Flow per share over a three-year performance period. In May, 2016, we awarded 54,591 restricted stock units for annual director compensation. We determined the service vesting condition of these restricted stock awards and restricted stock units to be non-substantive and, in accordance with accounting principles for stock compensation, recorded the entire fair value of the awards as compensation expense on the grant date. In September, 2016, the Board of Directors appointed two new board members. We awarded 5,550 restricted stock units for the prorated portion of the annual director compensation with respect to these directors. We determined the service vesting condition of these restricted stock awards and restricted stock units to be non-substantive and, in accordance with accounting principles for stock compensation, recorded the entire fair value of the awards as compensation expense on the grant date. Changes in nonvested restricted stock units were as follows (in thousands, except per share amounts): As of December 31, 2016 2015 2014 Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Nonvested at the beginning of the year 1,189 $ 17.60 894 $ 15.93 691 $ 16.66 Granted 888 $ 14.65 322 $ 21.95 247 $ 14.60 Vested (51 ) $ 20.24 (21 ) $ 17.94 (44 ) $ 16.51 Forfeited (223 ) $ 16.29 (6 ) $ 21.99 — $ — Nonvested at the end of the year 1,803 $ 16.25 1,189 $ 17.60 894 $ 15.93 Stock Options We have also awarded stock options to certain employees and directors. Stock options awarded to directors vested immediately. Stock options awarded to employees have typically vested annually over three to five years and expire over ten years. We calculate the fair value of our share-based option awards using the Black-Scholes option pricing model which requires estimates of the expected life of the award and stock price volatility. The following table summarizes activity and balance information of the options under the 2014 Stock Option Plan: As of December 31, 2016 2015 2014 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price 2014 Stock Option Plan (in thousands, except per share amounts) Outstanding at the beginning of the year 1,100 $ 21.37 1,113 $ 21.25 1,686 $ 20.42 Granted — $ — — $ — 25 $ 20.58 Exercised — $ — (13 ) $ 11.40 (532 ) $ 18.53 Expired (20 ) $ — — $ — (66 ) $ 20.52 Forfeited — $ — — $ — — $ — Outstanding at the end of the year 1,080 $ 21.38 1,100 $ 21.37 1,113 $ 21.25 Options exercisable at year end 1,080 $ 21.38 1,100 $ 21.37 1,100 $ 21.26 Options available for future grant 4,003 5,652 6,548 As of December 31, 2016 , options for shares were in the following price ranges (in thousands, except years and per share amounts): Weighted Average Remaining Contractual Life (Years) Options Outstanding Options Exercisable Exercise Price Range Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price $20.52 — $20.58 850 $ 20.52 0.4 850 $ 20.52 $23.30 — $24.76 230 $ 24.57 1.4 230 $ 24.57 1,080 1,080 The total cash received from the exercise of stock options was zero , less than $1 million and $10 million , for the years ended December 31, 2016, 2015 and 2014 , respectively. The tax benefits related to the exercise of the non-qualified stock options and the vesting of the restricted stock award were not recognized during the years ended December 31, 2016, 2015 and 2014 due to our NOLs. When the NOLs have been fully utilized by us, we will recognize a tax benefit and an increase in additional paid-in capital for the excess tax deductions received on the exercised non-qualified stock options and vested restricted stock. Future realization of the tax benefit will be presented in cash flows from financing activities in the consolidated statements of cash flows in the period the tax benefit is recognized. Previously recorded tax benefits that are in excess of the realized tax benefit on a particular non-qualified stock option or restricted stock are recorded as an increase to income tax expense since there is no additional paid-in capital pool available to offset these reduced tax benefits. The aggregate intrinsic value as of December 31, 2016 for options exercisable was $0 for options outstanding and options vested. All options outstanding as of December 31, 2016 are fully vested. The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the closing stock price on the last trading day of 2016 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last trading day of 2016 (December 30, 2016). The intrinsic value changes based on the fair market value of our common stock. The total intrinsic value of options exercised for the years ended as of December 31, 2016, 2015 and 2014 was $0 , $0 , and $1 million , respectively. As of December 31, 2016 , there were options to purchase 1 million shares of common stock that had vested at a weighted average exercise price of $21.38 . |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 18. COMMITMENTS AND CONTINGENCIES We and/or our subsidiaries are party to a number of claims, lawsuits and pending actions, most of which are routine and all of which are incidental to our business. We assess the likelihood of potential losses on an ongoing basis and when losses are considered probable and reasonably estimable, record as a loss an estimate of the outcome. If we can only estimate the range of a possible loss, an amount representing the low end of the range of possible outcomes is recorded. Our assessments are based on estimates and assumptions that have been deemed reasonable by management, but the assessment process relies on estimates and assumptions that may prove to be incomplete or inaccurate, and unanticipated events or circumstances may occur that might cause us to change those estimates and assumptions. The final consequences of these proceedings are not presently determinable with certainty. As of December 31, 2016 and 2015, accruals for our loss contingencies approximated $11 million and $1 million , respectively. Environmental Matters Our operations are subject to environmental regulatory laws and environmental remediation laws. Although our operations are occasionally subject to proceedings and orders pertaining to emissions into the environment and other environmental violations, which may result in fines, penalties, damages or other sanctions, we believe that we are in substantial compliance with existing environmental laws and regulations. We may be identified, along with other entities, as being among parties potentially responsible for contribution to costs associated with the correction and remediation of environmental conditions at disposal sites subject to federal and/or analogous state laws. In certain instances, we may be exposed to joint and several liabilities for remedial action or damages. Our liability in connection with such environmental claims will depend on many factors, including our volumetric share of waste, the total cost of remediation, and the financial viability of other companies that also sent waste to a given site and, in the case of divested operations, the contractual arrangement with the purchaser of such operations. The potential costs related to the matters described below and the possible impact on future operations are uncertain due in part to the complexity of governmental laws and regulations and their interpretations, the varying costs and effectiveness of cleanup technologies, the uncertain level of insurance or other types of recovery and the questionable level of our responsibility. Although the ultimate outcome and expense of any litigation, including environmental remediation, is uncertain, we believe that the following proceedings will not have a material adverse effect on our consolidated financial position or results of operations. Lower Passaic River Matter. In August 2004, the United States Environmental Protection Agency (the “EPA”) notified Covanta Essex Company (“Essex”) that it was a potentially responsible party (“PRP”) for Superfund response actions in the Lower Passaic River Study Area, referred to as “LPRSA,” a 17 mile stretch of river in northern New Jersey. Essex’s LPRSA costs to date are not material to its financial position and results of operations; however, to date the EPA has not sought any LPRSA remedial costs or natural resource damages against PRPs. On March 3, 2016, the EPA released the Record of Decision (“ROD”) for its Focused Feasibility Study of the lower 8 miles of the LPRSA; the EPA’s selected remedy includes capping/dredging of sediment, institutional controls and long-term monitoring. The Essex facility started operating in 1990 and Essex does not believe there have been any releases to the LPRSA, but in any event believes any releases would have been de minimis considering the history of the LPRSA; however, it is not possible at this time to predict that outcome or to estimate the range of possible loss relating to Essex’s liability in the matter, including for LPRSA remedial costs and/or natural resource damages. Tulsa Matter. In January 2016, we were informed by the office of the United States Attorney for the Northern District of Oklahoma (“U.S. Attorney”) that our subsidiary, Covanta Tulsa Renewable Energy LLC, is the target of a criminal investigation being conducted by the EPA. We understand that the EPA plans to allege improprieties in the recording and reporting of emissions data during an October 2013 incident involving one of the three municipal waste combustion units at our Tulsa, Oklahoma facility. We believe that our operations in Tulsa were and are in compliance with existing laws and regulations in all material respects. While we can provide no assurance as to the outcome of this matter, we do not believe that the investigation or any issues arising therefrom will have a material adverse effect on our financial position, cash flows or results of operations. Other Matters Durham-York Contractor Arbitration We are seeking to resolve outstanding disputes with our primary contractor for the Durham-York construction project regarding (i) claims by the contractor for change orders and other expense reimbursement and (ii) claims by us for charges and liquidated damages for project completion delays. Our contract with this contractor contemplates binding arbitration to resolve these disputes, which we expect may conclude in 2017. While we do not expect resolution of these disputes to have a material adverse impact on our financial position, it could be material to our results of operations and or cash flows in any given accounting period. China Indemnification Claims Subsequent to completing the exchange of our project ownership interests in China for a 15% ownership interest in Sanfeng Environment (see Note 4. Dispositions, Assets Held for Sale and Discontinued Operations ), Sanfeng Environment made certain claims for indemnification under the agreement related to the condition of the facility in Taixing. To the extent that any payment is made related to these claims, such amount could reduce the gain recorded in a future period. Other Commitments Other commitments as of December 31, 2016 were as follows (in millions): Commitments Expiring by Period Total Less Than One Year More Than One Year Letters of credit issued under the Revolving Credit Facility $ 156 $ — $ 156 Letters of credit - other 61 — 61 Surety bonds 158 — 158 Total other commitments — net $ 375 $ — $ 375 The letters of credit were issued to secure our performance under various contractual undertakings related to our domestic and international projects or to secure obligations under our insurance program. Each letter of credit relating to a project is required to be maintained in effect for the period specified in related project contracts, and generally may be drawn if it is not renewed prior to expiration of that period. We believe that we will be able to fully perform under our contracts to which these existing letters of credit relate, and that it is unlikely that letters of credit would be drawn because of a default of our performance obligations. If any of these letters of credit were to be drawn by the beneficiary, the amount drawn would be immediately repayable by us to the issuing bank. If we do not immediately repay such amounts drawn under letters of credit issued under the Revolving Credit Facility, unreimbursed amounts would be treated under the Credit Facilities as either additional term loans or as revolving loans. The surety bonds listed in the table above relate primarily to construction and performance obligations and support for other obligations, including closure requirements of various energy projects when such projects cease operating. Were these bonds to be drawn upon, we would have a contractual obligation to indemnify the surety company. We have certain contingent obligations related to the 7.25% Notes, 6.375% Notes, 5.875% Notes, and Tax-Exempt Bonds. Holders may require us to repurchase their 7.25% Notes, 6.375% Notes, 5.875% Notes and Tax-Exempt Bonds if a fundamental change occurs. For specific criteria related to the redemption features of the 5.875% Notes, 7.25% Notes or 6.375% Notes, see Note 11. Consolidated Debt . We have issued or are party to guarantees and related contractual support obligations undertaken pursuant to agreements to construct and operate waste and energy facilities. For some projects, such performance guarantees include obligations to repay certain financial obligations if the project revenue is insufficient to do so, or to obtain or guarantee financing for a project. With respect to our businesses, we have issued guarantees to municipal clients and other parties that our subsidiaries will perform in accordance with contractual terms, including, where required, the payment of damages or other obligations. Additionally, damages payable under such guarantees for our energy-from-waste facilities could expose us to recourse liability on project debt. If we must perform under one or more of such guarantees, our liability for damages upon contract termination would be reduced by funds held in trust and proceeds from sales of the facilities securing the project debt and is presently not estimable. Depending upon the circumstances giving rise to such damages, the contractual terms of the applicable contracts, and the contract counterparty’s choice of remedy at the time a claim against a guarantee is made, the amounts owed pursuant to one or more of such guarantees could be greater than our then-available sources of funds. To date, we have not incurred material liabilities under such guarantees. Dublin EfW Facility In connection with the financing of the Dublin EfW facility, Covanta Energy has made commitments for contingent support as follows: (1) lending commitments up to €25 million to fund working capital shortfalls in the project company under certain circumstances during operations; and (2) up to €75 million commitment in the aggregate to provide support payments to the project company, under certain circumstances, in the event waste revenue falls below minimum levels (set far below anticipated levels). For additional information on the Dublin EfW facility, see Note 3. New Business and Asset Management and Note 11. Consolidated Debt . New York City Contract Investments In 2013, New York City awarded us a contract to handle waste transport and disposal from two marine transfer stations located in Queens and Manhattan. Service for the Queens marine transfer station began in early 2015, service for the Manhattan marine transfer station is expected to follow pending notice to proceed to be issued by New York City which is anticipated in 2018. As of December 31, 2016 , we expect to incur approximately $33 million of additional capital expenditures, primarily for transportation equipment. |
QUARTERLY DATA (UNAUDITED)
QUARTERLY DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
QUARTERLY DATA (UNAUDITED) [Abstract] | |
Quarterly Data (Unaudited) | QUARTERLY DATA (UNAUDITED) The following table presents quarterly unaudited financial data for the periods presented on the consolidated statements of operations (in millions, except per share amounts): Calendar Quarter Ended March 31, June 30, September 30, December 31, 2016 2015 2016 2015 2016 2015 2016 2015 Operating revenue $ 403 $ 383 $ 418 $ 408 $ 421 $ 422 $ 457 $ 432 Operating (loss) income (1) $ (14 ) $ 7 $ 5 $ (15 ) $ 60 $ 74 $ 58 $ 43 Net (loss) income $ (37 ) $ (37 ) $ (29 ) $ (6 ) $ 54 $ 34 $ 8 $ 78 Net (loss) income attributable to Covanta Holding Corporation $ (37 ) $ (37 ) $ (29 ) $ (6 ) $ 54 $ 34 $ 8 $ 77 (Loss) Earnings per share attributable to Covanta Holding Corporation stockholders: Basic $ (0.29 ) $ (0.28 ) $ (0.23 ) $ (0.05 ) $ 0.42 $ 0.26 $ 0.06 $ 0.59 Diluted $ (0.29 ) $ (0.28 ) $ (0.23 ) $ (0.05 ) $ 0.42 $ 0.25 $ 0.06 $ 0.58 Cash dividend declared per share: $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 (1) As restated for the quarters ending March 31, June 30, September 30 and December 31, 2015, for reclassification of Net interest expense (income) on project debt of $2 million , $5 million , $3 million , and $(1) million , respectively, to Interest expense, net on our consolidated statement of operations. As a result, Operating income (loss) increased (decreased) accordingly. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Southeast Connecticut Energy-from -Waste Facility On February 22, 2017, we extended our agreement with the Southeastern Connecticut Regional Resource Recovery Authority for an additional four years. As a result, our Southeast Connecticut energy-from-waste facility is now operating under a tip fee structure. Fairfax County Energy-from-Waste Facility On February 2, 2017, our Fairfax County energy-from waste facility located in Lorton, Virginia experienced a fire in the front-end receiving portion of the facility. We are still investigating and evaluating the impact of the event, and once this effort is completed, we may have an asset impairment. The cost of repair or replacement, and business interruption losses, are insured, subject to applicable deductibles. We do not expect that this will have a significant impact on our 2017 financial results. |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2016 | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |
Schedule II Valuation and Qualifying Accounts Receivable | Schedule II — Valuation and Qualifying Accounts Receivables Valuation and Qualifying Accounts Additions Balance Beginning of Year Charged to Costs and Expense Charged to Other Accounts Deductions Balance at End of Period (In millions) 2016 – Reserves for doubtful accounts $ 7 $ 3 $ — $ 1 $ 9 2015 – Reserves for doubtful accounts $ 6 $ 1 $ — $ — $ 7 2014 – Reserves for doubtful accounts $ 4 $ 4 $ — $ 2 $ 6 |
ORGANIZATION AND SUMMARY OF S30
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements reflect the results of our operations, cash flows and financial position of our majority-owned or controlled subsidiaries. All intercompany accounts and transactions have been eliminated. |
Equity and Cost Method Investments | Equity and Cost Method Investments Investments in unconsolidated entities over which we have significant influence are accounted for under the equity method of accounting. Investments in entities in which we do not have the ability to exert significant influence over the investees’ operating and financing activities are accounted for under the cost method of accounting. Cost-method investments are carried at historical cost unless indicators of impairment are identified. We monitor investments for other-than-temporary declines in value and make reductions when appropriate. |
Revenue Recognition | Revenue Recognition Our revenue is generated from the fees we earn for: waste disposal, operating energy-from-waste and independent power facilities, servicing project debt, and for waste transportation and processing; from the sale of electricity and steam; from the sale of recycled ferrous and non-ferrous metal; and from construction services. The fees charged for our services are generally defined in our service agreements and vary based on contract-specific terms. We generally recognize revenue as services are performed or products are delivered. For example, revenue typically is recognized as waste is received or processed at our facilities, metals are shipped from our sites or as kilowatts are delivered to a customer by an EfW facility or independent power production plant. Revenue under existing fixed-price or cost-plus construction contracts is recognized using the percentage-of-completion method, measured by the cost-to-cost method. If an arrangement involves multiple deliverables, the delivered items are considered separate units of accounting if the items have value on a stand-alone basis. Amounts allocated to each element are based on its objectively determined fair value, such as the sales price for the product or service when it is sold separately or competitor prices for similar products or services. |
Plant Operating Expense | Plant Operating Expense Plant operating expense includes facility employee costs, expense for materials and parts for facility scheduled and unscheduled maintenance and repair expense, which includes costs related to our internal maintenance team and non-facility employee costs. Plant operating expense also includes hauling and disposal expenses, fuel costs, chemicals and reagents, operating lease expense, and other facility operating related expense. |
Pass Through Costs | Pass Through Costs Pass through costs are costs for which we receive a direct contractually committed reimbursement from the municipal client that sponsors an EfW project. These costs generally include utility charges, insurance premiums, ash residue transportation and disposal, and certain chemical costs. These costs are recorded net of municipal client reimbursements in our consolidated financial statements. |
Income Taxes | Income Taxes Deferred income taxes are based on the difference between the financial reporting and tax basis of assets and liabilities. The deferred income tax provision represents the change during the reporting period in the deferred tax assets and deferred tax liabilities, net of the effect of acquisitions and dispositions. Deferred tax assets include tax losses and credit carryforwards and are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. We file a consolidated federal income tax return for each of the periods covered by the consolidated financial statements, which include all eligible United States subsidiary companies. Foreign subsidiaries are taxed according to regulations existing in the countries in which they do business. Our federal consolidated income tax return also includes the taxable results of certain grantor trusts, which are excluded from our consolidated financial statements; however, certain related tax attributes are recorded in our consolidated financial statements since they are part of our federal tax return. |
Share-Based Compensation | Stock-Based Compensation Stock-based compensation for share-based awards to employees is accounted for as compensation expense based on their grant date fair values. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments having maturities of three months or less from the date of purchase. These short-term investments are stated at cost, which approximates fair value. Balances held by our international subsidiaries are not generally available for near-term liquidity in our domestic operations. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of amounts due to us from normal business activities. Allowances for doubtful accounts are the estimated losses from the inability of customers to make required payments. We use historical experience, as well as current market information, in determining the estimate. |
Restricted Funds Held in Trust | Restricted Funds Held in Trust Restricted funds held in trust are primarily amounts received and held by third party trustees relating to certain projects we own. We generally do not control these accounts and these funds may be used only for specified purposes. These funds include debt service reserves for payment of principal and interest on project debt. Revenue funds are comprised of deposits of revenue received with respect to projects prior to their disbursement. Other funds include escrowed debt proceeds, amounts held in trust for operations, maintenance, environmental obligations, operating lease reserves in accordance with agreements with our clients, and amounts held for future scheduled distributions. Such funds are invested principally in money market funds, bank deposits and certificates of deposit, United States treasury bills and notes, United States government agency securities, and high-quality municipal bonds. |
Revenue Recognition | Advance billings to certain customers are billed one or two months prior to performance of service and are recognized as income in the period the service is provided. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant, and equipment acquired in business acquisitions is recorded at our estimate of fair value on the date of the acquisition. Additions, improvements and major expenditures are capitalized if they increase the original capacity or extend the remaining useful life of the original asset more than one year. Maintenance repairs and minor expenditures are expensed in the period incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which generally range from three years for computer equipment to 50 years for certain infrastructure components of energy-from-waste facilities. Property, plant and equipment at our service fee operated facilities are not recognized on our balance sheet due to the adoption of the service concession arrangements guidance described in greater detail within the Accounting Pronouncements Recently Adopted discussion below . Any additions, improvements and major expenditures for which we are responsible at our service fee operated facilities are expensed in the period incurred. Our leasehold improvements are depreciated over the life of the lease term or the asset life, whichever is shorter. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the consolidated balance sheets and any gain or loss is reflected in the consolidated statements of operations. |
Property, Plant and Equipment, Impairment | Property, plant and equipment is evaluated for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable over their estimated useful life. In reviewing for recoverability, we compare the carrying amount of the relevant assets to their estimated undiscounted future cash flows. When the estimated undiscounted future cash flows are less than the assets carrying amount, the carrying amount is compared to the assets fair value. If the assets fair value is less than the carrying amount an impairment charge is recognized to reduce the assets carrying amount to its fair value. |
Asset Retirement Obligations | Asset Retirement Obligations We recognize a liability for asset retirement obligations when it is incurred, which is generally upon acquisition, construction, or development. Our liabilities include closure and post-closure costs for landfill cells and site restoration for certain energy-from-waste and power producing sites. We principally determine the liability using internal estimates of the costs using current information, assumptions, and interest rates, but also use independent appraisals as appropriate to estimate costs. When a new liability for asset retirement obligation is recorded, we capitalize the cost of the liability by increasing the carrying amount of the related long-lived asset. The liability is accreted to its present value each period and the capitalized cost is depreciated over the useful life of the related asset. We recognize period-to-period changes in the liability resulting from revisions to the timing or the amount of the original estimate of the undiscounted cash flows. |
Intangible Assets and Liabilities | Intangible Assets and Liabilities Our waste, service and energy contracts are intangible assets related to long-term operating contracts at acquired facilities. These intangible assets and liabilities, as well as lease interest and other finite and indefinite-lived intangible assets, are recorded at their estimated fair market values upon acquisition based primarily upon discounted cash flows in accordance with accounting standards related to business combinations. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets | Intangible assets with finite lives are evaluated for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable over their estimated useful life. In reviewing for recoverability, we compare the carrying amount of the relevant assets to their estimated undiscounted future cash flows. When the estimated undiscounted future cash flows are less than the assets carrying amount, the carrying amount is compared to the assets fair value. If the assets fair value is less than the carrying amount an impairment charge is recognized to reduce the assets carrying amount to its fair value. As of December 31, 2016, there were no indicators of impairment identified. |
Goodwill | Goodwill Goodwill is the excess of our purchase cost over the fair value of the net assets of acquired businesses. We do not amortize goodwill, but we assess our goodwill for impairment at least annually. We assess whether a goodwill impairment exists using both qualitative and quantitative assessments. When we elect to perform a qualitative assessment, it involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If based on this qualitative assessment we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if we did not elect to perform the qualitative assessment we will perform a quantitative assessment. A quantitative assessment of goodwill requires a comparison of the estimated fair value of the reporting unit to which the goodwill has been assigned to its carrying value. All goodwill is related to the North America reportable segment, which is comprised of two reporting units. A reporting unit is defined as an operating segment or a component of an operating segment to the extent discrete financial information is available that is reviewed by segment management. If the carrying value of the reporting unit exceeds the fair value, the reporting unit’s goodwill is compared to its implied value of goodwill. If the carrying value of the reporting unit’s goodwill exceeds the implied value, an impairment charge is recognized to reduce the carrying value to the implied value. |
Business Combinations | Business Combinations We recognize the assets acquired and liabilities assumed in a business combination at fair value including any noncontrolling interest of the acquired entity; recognize any goodwill acquired; establish the acquisition-date fair value based on the highest and best use by market participants for the asset as the measurement objective; and disclose information needed to evaluate and understand the nature and financial effect of the business combination. We expense transaction costs directly associated to the acquisition as incurred; capitalize in-process research and development costs, if any; and record a liability for contingent consideration at the measurement date with subsequent remeasurement recognized in the results of operations. Any costs for business restructuring and exit activities related to the acquired company are included in the post-combination results of operations. Tax adjustments related to previously recorded business combinations, if any, are recognized in the results of operations. |
Foreign Currency Translation | Foreign Currency Translation For foreign operations, assets and liabilities are translated at year-end exchange rates and revenue and expense are translated at the average exchange rates during the year. Unrealized gains and losses resulting from foreign currency translation are included in the consolidated statements of equity as a component of AOCI. Currency transaction gains and losses are recorded in other operating expense in the consolidated statements of operations. |
Pension and Postretirement Benefit Obligations | Pension and Postretirement Benefit Obligations Our pension and other postretirement benefit plans are accounted for based on actuarially-determined estimates. |
Share Repurchases | Share Repurchases Under our share repurchase program, common stock repurchases may be made, from time to time, in the open market, in privately negotiated transactions, or by other available methods, at management’s discretion and in accordance with applicable federal securities laws. The timing and amounts of any repurchases will depend on many factors, including our capital structure, the market price of our common stock and overall market conditions, and whether any restrictions then exist under our policies relating to trading in compliance with securities laws. Purchase price over par value for share repurchases are allocated to additional paid-in capital up to the weighted average amount per share recorded at the time of initial issuance of our common stock, with any excess recorded as a reduction to retained earnings. |
Use of Estimates | Use of Estimates The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts of assets or liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Significant estimates include: useful lives of long-lived assets, asset retirement obligations, construction expense estimates, unbilled service receivables, fair value of financial instruments, fair value of the reporting units for goodwill impairment analysis, fair value of long-lived assets for impairment analysis, renewable energy credits, stock-based compensation, purchase accounting allocations, cash flows and taxable income from future operations, deferred taxes, allowances for uncollectible receivables, and liabilities related to employee medical benefit obligations, workers’ compensation, severance and certain litigation. |
Reclassifications | Reclassifications Certain amounts have been reclassified in our prior period consolidated balance sheet to conform to current year presentation and such amounts were not material to current and prior periods. During the year ended December 31, 2016, we concluded that it was appropriate to include Net interest expense on project debt within Interest expense, net on our consolidated statement of operations because such amounts were deemed immaterial. Previously, Net interest expense on project debt was reported separately, as a component of Operating expense. For the years ended December 31, 2015 and 2014, Net interest expense on project debt of $9 million and $10 million , respectively, was reclassified to Interest expense, net on our consolidated statement of operations and as a result, Operating income increased accordingly for those periods. |
Earnings Per Share | Earnings Per Share We calculate basic earnings per share ("EPS") using net earnings for the period and the weighted average number of outstanding shares of our common stock, par value $0.10 per share, during the period. Basic weighted average shares outstanding have decreased due to share repurchases. Diluted earnings per share computations, as calculated under the treasury stock method, include the weighted average number of shares of additional outstanding common stock issuable for stock options, restricted stock awards and restricted stock units whether or not currently exercisable. Diluted earnings per share does not include securities if their effect was anti-dilutive. |
Fair Value Measurements | Fair Value Measurements Authoritative guidance associated with fair value measurements provides a framework for measuring fair value and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs), then significant other observable inputs (Level 2 inputs) and the lowest priority to significant unobservable inputs (Level 3 inputs). The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • For cash and cash equivalents, restricted funds, and marketable securities, the carrying value of these amounts is a reasonable estimate of their fair value. The fair value of restricted funds held in trust is based on quoted market prices of the investments held by the trustee. • Fair values for long-term debt and project debt are determined using quoted market prices. • The fair value for interest rate swaps were determined by obtaining quotes from two counterparties (one is a holder of the long position and the other is in the short) and extrapolating those across the long and short notional amounts. The fair value of the interest rate swaps was adjusted to reflect counterparty risk of non-performance, and was based on the counterparty’s credit spread in the credit derivatives market. • The fair values of our energy hedges were determined using the spread between our fixed price and the forward curve information available within the market. • The fair value of our foreign currency hedge was determined by obtaining quotes from two counterparties and is based on market accepted option pricing methodology which utilizes inputs such as the currency spot rate as of the balance sheet date, the strike price of the options and volatility. The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we would realize in a current market exchange. The fair-value estimates presented herein are based on pertinent information available to us as of December 31, 2016 . Such amounts have not been comprehensively revalued for purposes of these financial statements since December 31, 2016 , and current estimates of fair value may differ significantly from the amounts presented herein. |
Derivative Instruments | Derivative Instruments We recognize derivative instruments on the balance sheet at their fair value. The cash conversion option and note hedge were derivative instruments that were recorded at fair value quarterly with changes in fair value recognized in our consolidated statements of operations as non-cash convertible debt related expense. We have entered into swap agreements with various financial institutions to hedge our exposure to energy price risk and interest rate risk. Changes in the fair value of the energy derivatives and the interest rate swap are recognized as a component of AOCI. The cash conversion option was a derivative instrument which was recorded at fair value quarterly with any change in fair value being recognized in our consolidated statements of operations as non-cash convertible debt related expense. The note hedge was accounted for as a derivative instrument and, as such, was recorded at fair value quarterly with any change in fair value being recognized in our consolidated statements of operations as non-cash convertible debt related expense. |
Energy Derivative Price Risk | Following the expiration of certain long-term energy sales contracts, we may have exposure to market risk, and therefore revenue fluctuations, in energy markets. We have entered into contractual arrangements that will mitigate our exposure to short-term volatility through a variety of hedging techniques, and will continue to do so in the future. Our efforts in this regard will involve only mitigation of price volatility for the energy we produce, and will not involve taking positions (either long or short) on energy prices in excess of our physical generation. |
ORGANIZATION AND SUMMARY OF S31
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Notes To Financial Statements [Abstract] | ||
Restricted Fund Balances | Restricted fund balances are as follows (in millions): As of December 31, 2016 2015 Current Noncurrent Current Noncurrent Debt service funds - principal $ 10 $ 7 $ 9 $ 8 Debt service funds - interest 1 — 1 — Total debt service funds 11 7 10 8 Revenue funds 3 — 4 — Other funds 42 47 63 75 Total $ 56 $ 54 $ 77 $ 83 | |
Summary of Deferred Revenue | Deferred revenue included in Accrued expenses and other current liabilities on our consolidated balance sheet consisted of the following (in millions): As of December 31, 2016 2015 Advance billings to municipalities $ 5 $ 6 Other 11 7 Total $ 16 $ 13 | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following (in millions): As of December 31, 2016 2015 Land $ 29 $ 22 Facilities and equipment 4,188 3,885 Landfills (primarily for ash disposal) 63 64 Construction in progress 433 266 Total 4,713 4,237 Less: accumulated depreciation and amortization (1,689 ) (1,547 ) Property, plant, and equipment — net $ 3,024 $ 2,690 | |
Summary of Asset Retirement Obligation | Our asset retirement obligation is presented as follows (in millions): As of December 31, 2016 2015 Beginning of period asset retirement obligation $ 30 $ 28 Accretion expense 2 2 Net change (1) (7 ) — End of period asset retirement obligation 25 30 Less: current portion — (3 ) Noncurrent asset retirement obligation $ 25 $ 27 (1) Comprised primarily of expenditures and settlements of the asset retirement obligation liability, net revisions based on current estimates of the liability and revised expected cash flows and life of the liability | |
AOCI, Net of Income Taxes | The changes in accumulated other comprehensive (loss) income are as follows (in millions): Foreign Currency Translation Pension and Other Postretirement Plan Unrecognized Net Gain Net Unrealized Loss on Derivatives Total Balance December 31, 2014 $ (12 ) $ 2 $ (12 ) $ (22 ) Other comprehensive (loss) income before reclassifications (22 ) — 10 (12 ) Amounts reclassified from accumulated other comprehensive loss — — — — Net current period comprehensive (loss) income (22 ) — 10 (12 ) Balance December 31, 2015 $ (34 ) $ 2 $ (2 ) $ (34 ) Other comprehensive loss before reclassifications (2 ) — (21 ) (23 ) Amounts reclassified from accumulated other comprehensive loss (5 ) — — (5 ) Net current period comprehensive loss (7 ) — (21 ) (28 ) Balance December 31, 2016 $ (41 ) $ 2 $ (23 ) $ (62 ) These unrealized gains and losses consisted of the following (in millions): As of December 31, 2016 2015 Foreign currency translation $ (41 ) $ (34 ) Pension and other postretirement plan unrecognized net gain 2 2 Net unrealized loss on derivatives (23 ) (2 ) Accumulated other comprehensive loss $ (62 ) $ (34 ) | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount Reclassified from Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income Component Year Ended December 31, 2016 Affected Line Item in the Consolidated Statement of Operations Foreign currency translation $ 5 Gain on asset sales (1) 5 Total before tax — Tax benefit Total reclassifications $ 5 Net of tax | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The adoption of this guidance had the following effect on our consolidated statement of operations for the year ended December 31, 2015 (in millions, except per share amounts): Increase (Decrease) Plant operating expense $ 31 Depreciation and amortization $ (22 ) Income tax expense $ (4 ) Net income attributable to Covanta Holding Corporation $ (5 ) Basic and Diluted income per share $ (0.04 ) |
DISPOSITIONS AND DISCONTINUED32
DISPOSITIONS AND DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Dispositions [Abstract] | |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | The following table sets forth the assets and liabilities of the Assets Held for Sale included in the consolidated balance sheets as of the dates indicated (in millions): As of December 31, 2016 2015 Cash and cash equivalents $ — $ 2 Receivables — 3 Prepaid expenses and other current assets — 1 Property, plant and equipment, net — 49 Other noncurrent assets — 42 Assets held for sale $ — $ 97 Current portion of project debt $ — $ 3 Accounts payable — 3 Accrued expenses and other current liabilities — 5 Project debt — 12 Liabilities held for sale $ — $ 23 |
EQUITY AND EARNINGS PER SHARE33
EQUITY AND EARNINGS PER SHARE ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Class of Treasury Stock [Table Text Block] | During the years ended December 31, 2016, 2015 and 2014 common shares repurchased and dividends declared were as follows (in millions, except per share amounts): For the Years Ended December 31, 2016 2015 2014 Total repurchases $ 18 $ 32 $ — Shares repurchased 1.2 2.1 — Weighted average cost per share $ 15.29 $ 15.33 $ — Dividends declared $ 132 $ 133 $ 114 Per share $ 1.00 $ 1.00 $ 0.86 |
Basic and Diluted Earnings Per Share Computations and Antidilutive Securities Excluded | Basic and diluted weighted average shares outstanding were as follows (in millions): For the Years Ended 2016 2015 2014 Basic weighted average common shares outstanding 129 132 130 Dilutive effect of restricted stock and restricted stock units (1) — 1 — Diluted weighted average common shares outstanding 129 133 130 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | For the Years Ended 2016 2015 2014 Stock options 1 1 1 Restricted stock 1 — 1 Restricted stock units 1 — — Warrants — — 25 |
FINANCIAL INFORMATION BY BUSI34
FINANCIAL INFORMATION BY BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Results of Reportable Segment | The results of our reportable segment are as follows (in millions): North America All Other (1) Total Year Ended December 31, 2016: Operating revenue $ 1,692 $ 7 $ 1,699 Depreciation and amortization expense $ 207 $ — $ 207 Impairment charges $ 20 $ — $ 20 Operating income (loss) $ 116 $ (7 ) $ 109 Interest expense, net $ 66 $ 72 $ 138 Gain on asset sales $ 3 $ 41 $ 44 Equity in net income from unconsolidated investments $ 1 $ 3 $ 4 As of December 31, 2016: Total assets $ 3,794 $ 490 $ 4,284 Capital additions $ 188 $ 171 $ 359 Year Ended December 31, 2015: Operating revenue $ 1,607 $ 38 $ 1,645 Depreciation and amortization expense $ 197 $ 1 $ 198 Impairment charges $ 43 $ — $ 43 Operating income $ 108 $ 1 $ 109 Interest expense, net $ 60 $ 74 $ 134 Equity in net income from unconsolidated investments $ — $ 13 $ 13 As of December 31, 2015: Total assets $ 3,838 $ 396 $ 4,234 Capital additions $ 175 $ 201 $ 376 Year Ended December 31, 2014: Operating revenue $ 1,641 $ 41 $ 1,682 Depreciation and amortization expense $ 208 $ 3 $ 211 Impairment charges $ 50 $ 14 $ 64 Operating income (loss) $ 168 $ (14 ) $ 154 Interest expense, net $ 63 $ 84 $ 147 Equity in net income from unconsolidated investments $ — $ 10 $ 10 As of December 31, 2014: Total assets $ 3,882 $ 297 $ 4,179 Capital additions $ 188 $ 28 $ 216 (1) All other is comprised of the financial results of our insurance subsidiaries’ operations through the date of disposal and our international assets. |
Schedule Of Revenue And Total Assets By Geographic Location Table [Text Block] | A summary of operating revenue and total assets by geographic area is as follows (in millions): United States Other Total Operating Revenue: Year Ended December 31, 2016 $ 1,677 $ 22 $ 1,699 Year Ended December 31, 2015 $ 1,589 $ 56 $ 1,645 Year Ended December 31, 2014 $ 1,567 $ 115 $ 1,682 United States Assets Held for Sale Other Total Total Assets: As of December 31, 2016 $ 3,763 $ — $ 521 $ 4,284 As of December 31, 2015 $ 3,847 $ 97 $ 290 $ 4,234 As of December 31, 2014 $ 3,802 $ 96 $ 281 $ 4,179 |
AMORTIZATION OF WASTE, SERVIC35
AMORTIZATION OF WASTE, SERVICE AND ENERGY CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Summary of Waste, Service and Energy Contracts | Waste, service and energy contracts consisted of the following (in millions): As of December 31, 2016 As of December 31, 2015 Remaining Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Waste, service and energy contracts (asset) 22 years $ 526 $ 263 $ 263 $ 531 $ 247 $ 284 Waste and service contracts (liability) 3 years $ (131 ) $ (124 ) $ (7 ) $ (131 ) $ (118 ) $ (13 ) |
Schedule Of Amortization Expense [Table Text Block] | The following table details the amount of the actual/estimated amortization expense and contra-expense associated with these intangible assets and liabilities as of December 31, 2016 included or expected to be included in our consolidated statements of operations for each of the years indicated (in millions): Waste, Service and Energy Contracts (Amortization Expense) Waste and Service Contracts (Contra-Expense) Year ended December 31, 2016 $ 21 $ (6 ) 2017 14 (2 ) 2018 13 (2 ) 2019 13 (2 ) 2020 13 (1 ) 2021 13 — Thereafter 197 — Total $ 263 $ (7 ) |
OTHER INTANGIBLE ASSETS AND G36
OTHER INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
OTHER INTANGIBLE ASSETS AND GOODWILL [Abstract] | |
Schedule Of Other Intangible Assets By Major Class Table [Text Block] | Other intangible assets consisted of the following (in millions): As of December 31, 2016 As of December 31, 2015 Remaining Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships and other 8 years $ 43 $ 13 $ 30 $ 40 $ 6 $ 34 Other intangibles Indefinite 4 — 4 4 — 4 Other intangible assets, net $ 47 $ 13 $ 34 $ 44 $ 6 $ 38 |
Other Intangible Assets Amortization Expense Table [Text Block] | The following table details the amount of the estimated amortization expense associated with other intangible assets as of December 31, 2016 expected to be included in our statements of operations for each of the years indicated (in millions): 2017 2018 2019 2020 2021 Thereafter Total Annual remaining amortization $ 5 $ 5 $ 5 $ 4 $ 3 $ 8 $ 30 |
Changes In Goodwill Table [Text Block] | The following table details the changes in carrying value of goodwill (in millions): Total Balance as of December 31, 2014 $ 274 Goodwill related to acquisitions 27 Balance as of December 31, 2015 301 Goodwill related to acquisitions 1 Balance as of December 31, 2016 $ 302 |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
EQUITY METHOD INVESTMENTS [Abstract] | |
Schedule of Equity Method Investments [Table Text Block] | As of December 31, 2016 and 2015 , investments in investees and joint ventures accounted for under the equity method, included in Other assets on our consolidated balance sheet, were as follows (dollars in millions): Ownership Interest as of December 31, 2016 2016 Ownership Interest as of December 31, 2015 2015 South Fork Plant (U.S.) 50% $ — 50% $ — Koma Kulshan Plant (U.S.) 50% 4 50% 5 TARTECH (U.S.) (1) 50% 1 50% 5 Ambiente 2000 (Italy) 40% — 40% — Total investments in investees and joint ventures $ 5 $ 10 Investments in investees and joint ventures classified as held for sale: (2) Sanfeng (China) —% — 40% $ 17 Chengdu (China) —% — 49% 22 Total investments in investees and joint ventures classified as held for sale $ — $ 39 (1) During 2016, we recorded a net impairment of our investment in this joint venture, see Note 14. Supplementary Information for additional information. (2) During 2016, we divested the majority of our investments in China, see Note 4. Dispositions, Assets Held for Sale and Discontinued Operations for additional information. |
OPERATING LEASES LEASES (Tables
OPERATING LEASES LEASES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following is a schedule, by year, of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2016 (in millions): 2017 2018 2019 2020 2021 Thereafter Total Future Minimum Rental Payments $ 8 $ 7 $ 6 $ 6 $ 6 $ 24 $ 57 |
CONSOLIDATED DEBT (Tables)
CONSOLIDATED DEBT (Tables) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Notes To Financial Statements [Abstract] | ||
Consolidated Debt | Consolidated debt is as follows (in millions): As of December 31, 2016 2015 LONG-TERM DEBT: Revolving Credit Facility (2.98% - 3.23%) (1) $ 343 $ 348 Term Loan, net (2.48%) (1) 195 200 Credit Facilities Sub-total $ 538 $ 548 7.25% Senior Notes due 2020 $ 400 $ 400 6.375% Senior Notes due 2022 400 400 5.875% Senior Notes due 2024 400 400 Less: deferred financing costs related to senior notes (14 ) (16 ) Senior Notes Sub-total $ 1,186 $ 1,184 4.00% - 5.25% Tax-Exempt Bonds due from 2024 to 2045 $ 464 $ 464 Less: deferred financing costs related to tax-exempt bonds (5 ) (6 ) Tax-Exempt Bonds Sub-total $ 459 $ 458 3.48% - 4.52% Equipment financing capital leases due 2020 through 2027 $ 69 $ 73 Total long-term debt $ 2,252 $ 2,263 Less: current portion (9 ) (8 ) Noncurrent long-term debt $ 2,243 $ 2,255 PROJECT DEBT: North America project debt 4.00 - 5.00% North America Project Debt related to Service Fee structures due 2017 through 2035 $ 78 $ 117 Union capital lease due 2017 through 2053 99 — 5.248% - 6.20% North America Project Debt related to Tip Fee structures due 2017 through 2020 16 23 Unamortized debt premium, net 4 5 Less: deferred financing costs related to North America project debt (1 ) (1 ) Total North America project debt $ 196 $ 144 Other project debt: Dublin senior loan due 2021 (5.72% - 6.41%) (2) $ 155 $ — Debt discount related to Dublin senior loan (6 ) — Less: deferred financing costs related to Dublin senior loan (18 ) — Dublin senior loan, net $ 131 $ — Dublin junior loan due 2022 (9.23% - 9.73%) $ 58 $ 57 Debt discount related to Dublin junior loan (1 ) (1 ) Less: deferred financing costs related to Dublin junior loan (1 ) (2 ) Dublin junior loan, net $ 56 $ 54 Total other project debt, net 187 54 Total project debt 383 198 Less: Current portion, includes $1 and $1 of net unamortized premium (22 ) (16 ) Noncurrent project debt $ 361 $ 182 TOTAL CONSOLIDATED DEBT $ 2,635 $ 2,461 Less: Current debt (31 ) (24 ) TOTAL NONCURRENT CONSOLIDATED DEBT $ 2,604 $ 2,437 (1) Eurodollar rates only; excludes base rate borrowings. (2) Reflects hedged fixed rates. | |
Available Credit for Liquidity | As of December 31, 2016 , we had availability under the Revolving Credit Facility as follows (in millions): Total Facility Commitment Expiring (1) Direct Borrowings as of Outstanding Letters of Credit as of Availability as of Revolving Credit Facility $ 1,000 2020 $ 343 $ 156 $ 501 | |
Schedule of Tax Exempt Bonds [Table Text Block] | In August 2015, we issued two new series of fixed rate tax-exempt corporate bonds totaling $130 million . Proceeds from the offerings were utilized to refinance tax-exempt project debt at our Delaware Valley facility and to fund certain capital improvements at our Essex County facility. Financing costs were not material. Details of the issues and the use of proceeds are as follows (dollars in millions): Series Amount Maturity Coupon Use of Proceeds Massachusetts Series 2012A $ 20 2027 4.875% New proceeds for qualifying capital expenditures in Massachusetts Massachusetts Series 2012B 67 2042 4.875% Redeem SEMASS project debt Massachusetts Series 2012C 82 2042 5.25% Redeem Haverhill project debt Niagara Series 2012A 130 2042 5.25% Redeem Niagara project debt Niagara Series 2012B 35 2024 4.00% Redeem Niagara project debt New Jersey Series 2015A 90 2045 5.25% Finance qualifying expenditures at Essex County facility Pennsylvania Series 2015A 40 2043 5.00% Refinance outstanding tax-exempt debt $ 464 | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | As of December 31, 2016 , the outstanding borrowings under the capital lease have mandatory amortization payments remaining as follows (in millions): 2017 2018 2019 2020 2021 Thereafter Annual Remaining Amortization $ 5 $ 5 $ 5 $ 6 $ 6 $ 72 | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | 2017 2018 2019 2020 2021 Thereafter Annual Remaining Amortization $ 5 $ 5 $ 5 $ 5 $ 5 $ 44 Depreciation associated with these capital lease arrangements is included in Depreciation and amortization expense on our consolidated statement of operations. For additional information see Note 1. Organization and Summary of Significant Accounting Policies - Property, Plant and Equipment . | |
Schedule Of Maturities Of Project Debt Table [Text Block] | The maturities of long-term project debt as of December 31, 2016 are as follows (in millions): 2017 2018 2019 2020 2021 Thereafter Total Less: Current Portion Total Noncurrent Project Debt Debt $ 22 $ 31 $ 26 $ 17 $ 144 $ 166 $ 406 $ (22 ) $ 384 Premium and deferred financing costs (5 ) (5 ) (5 ) (5 ) (4 ) 1 (23 ) — (23 ) Total $ 17 $ 26 $ 21 $ 12 $ 140 $ 167 $ 383 $ (22 ) $ 361 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes To Financial Statements [Abstract] | |
Fair Value Measurement of Assets and Liabilities | The following financial instruments are recorded at their estimated fair value. The following table presents information about the recurring fair value measurement of our assets and liabilities as of December 31, 2016 and 2015 : As of December 31, Financial Instruments Recorded at Fair Value on a Recurring Basis: Fair Value Measurement Level 2016 2015 (In millions) Assets: Cash and cash equivalents: Bank deposits and certificates of deposit 1 $ 79 $ 89 Money market funds 1 5 5 Total cash and cash equivalents: 84 94 Restricted funds held in trust: Bank deposits and certificates of deposit 1 12 9 Money market funds 1 36 66 U.S. Treasury/agency obligations (1) 1 14 18 State and municipal obligations 1 46 59 Commercial paper/guaranteed investment contracts/repurchase agreements 1 2 8 Total restricted funds held in trust: 110 160 Investments: Mutual and bond funds (2) 1 2 2 Derivative asset — energy hedges (3) 2 3 21 Total assets: $ 199 $ 277 Liabilities: Derivative liability — energy hedges (4) 2 $ 1 $ — Derivative liability — interest rate swaps (4) (5) 2 20 14 Total liabilities: $ 21 $ 14 The following financial instruments are recorded at their carrying amount (in millions): As of December 31, 2016 As of December 31, 2015 Financial Instruments Recorded at Carrying Amount: Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Accounts receivables (6) $ 333 $ 333 $ 314 $ 314 Liabilities: Long-term debt $ 2,252 $ 2,237 $ 2,263 $ 2,244 Project debt $ 383 $ 387 $ 198 $ 206 (1) The U.S. Treasury/agency obligations in restricted funds held in trust are primarily comprised of Federal Home Loan Mortgage Corporation securities at fair value. (2) Included in other noncurrent assets in the consolidated balance sheets. (3) Included in prepaid expenses and other current assets in the consolidated balance sheets. (4) Included in accrued expenses and other current liabilities in the consolidated balance sheets. (5) Included in other noncurrent liabilities in the consolidated balance sheets. (6) Includes $1 million and $2 million of noncurrent receivables in other noncurrent assets in the consolidated balance sheets as of December 31, 2016 and 2015 . In addition to the recurring fair value measurements, certain assets are measured at fair value on a non-recurring basis when an indication of impairment is identified and the assets fair value is determined to be less than its carrying value. See Note 14. Supplementary Information - Impairment Charges for additional information. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Derivative Instruments Not Designated as Hedging Instruments | The following disclosures summarize the fair value of derivative instruments not designated as hedging instruments in the consolidated balance sheets and the effect of changes in fair value related to those derivative instruments not designated as hedging instruments on the consolidated statements of operations (in millions): Derivative Instruments Not Designated As Hedging Instruments Fair Value as of December 31, Balance Sheet Location 2016 2015 Asset Derivatives: Foreign currency hedges Prepaid expenses and other current assets $ — $ 6 Amount of Gain (Loss) Recognized In Income on Derivatives Effect on Income of Derivative Instruments Not Designated As Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivatives For the Years Ended December 31, 2016 2015 2014 Foreign currency hedge Other expense, net $ (2 ) $ 6 $ — Note hedge Non-cash convertible debt related expense — — 5 Cash conversion option Non-cash convertible debt related expense — — (5 ) Effect on income of derivative instruments not designated as hedging instruments $ (2 ) $ 6 $ — |
SUPPLEMENTARY INFORMATION (Tabl
SUPPLEMENTARY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Schedule of Business Insurance Recoveries [Table Text Block] | During the year ended December 31, 2106, we recorded insurance recoveries in our consolidated statements of operations, related to this matter, as follows (in millions): Insurance recoveries for repair and reconstruction costs (net of write-down of assets, reduction to Other operating expense, net) $ 5 Insurance recoveries for business interruption and clean-up costs, net of costs incurred (reduction to Plant operating expense) $ 3 |
Schedule Of Net Write-Offs [Table Text Block] | components of impairment charges are as follows (in millions): For the Years Ended 2016 2015 2014 North America segment: Impairment charges related to tangible and intangible assets (1) $ 16 $ — $ 16 Impairment charges related to biomass facilities and biomass equity investment (2) — 43 34 Impairment charges - other 4 — — North America segment sub-total: 20 43 50 Other: Impairment charge related to insurance business (3) — — 14 Total impairment charges $ 20 $ 43 $ 64 (1) Impairment charges related to tangible and intangible assets are related to the following: • During the year ended December 31, 2016, we recorded a non-cash impairment charge of $13 million , pre-tax, related to the previously planned closure of our Pittsfield EfW facility which is now expected to continue operating. For additional information see Note 3. New Business and Asset Management . We also recorded a non-cash impairment charge of $3 million , pre-tax, related to a joint-venture project, see Tartech Investment discussion below. • On June 30, 2014, our service agreement with the Dutchess County Resource Recovery Agency under which we operated the Hudson Valley EfW facility expired. In 2014, we recorded a $9 million non-cash impairment charge of the intangible asset that was recorded upon acquisition in 2009 based on the expected cash flows over the remaining life of the contract utilizing Level 3 inputs. • On April 3, 2014, the Montgomery County (PA) Commissioners (the “County”) unanimously voted to dissolve the Waste System Authority of Eastern Montgomery County (the “WSA”). The Abington transfer station was constructed by the County and subsequently deeded to the WSA, which was responsible for its operation. We operated the transfer station through the end of the current contract, which expired on December 31, 2014. However, due to the dissolution of the WSA, it was not able to renew our current contract to operate the Abington transfer station. During the year ended December 31, 2014, we recorded a non-cash impairment charge of $7 million of the service contract intangible with the WSA that was recorded upon acquisition in 2009 based on the expected cash flows over the remaining life of the contract utilizing Level 3 inputs. (2) Impairments related to our biomass assets are as follows: • During the year ended 2015, we identified indicators of impairment associated with our biomass facilities, primarily due to a decline in energy market pricing. As a result of these developments, we recorded a non-cash impairment charge of $43 million , pre-tax, which was calculated based on a range of potential outcomes utilizing various estimated cash flows for these facilities utilizing Level 3 inputs. • During year ended December 31, 2014, we identified indicators of impairment associated with our California Biomass facilities, primarily that we were unsuccessful in securing new long-term power purchase agreements to replace the current power purchase agreements, which were approaching the end of their terms. Based on expected cash flows utilizing Level 3 inputs, we recorded a non-cash impairment charge of $34 million to reduce the carrying value of the California Biomass assets to their estimated fair value. (3) During 2014, we sold our insurance subsidiaries and recorded a non-cash impairment of $14 million comprised of the write-down of the carrying amount in excess of the realizable fair value of $12 million , plus $2 million in disposal costs. Tartech Investment We are party to a joint venture that was formed to recover and recycle metals from EfW ash monofills in North America. During the year ended December 31, 2016, due to operational difficulties and the decline in the scrap metal market, a valuation of the entity was conducted. As a result, we recorded a net impairment of our investment in this joint venture of $3 million , pre-tax, which represents our portion of the carrying value of the entity in excess of the fair value. Such amount was calculated based on the estimated liquidation value of the tangible equipment utilizing Level 3 inputs. For more information regarding fair value measurements, see Note 12. Financial Instruments . Non- |
Components of Non-Cash Convertible Debt Related Expense | components of non-cash convertible debt related expense are as follows (in millions): For the Years Ended 2016 2015 2014 Debt discount accretion related to the 3.25% Notes $ — $ — $ 13 Fair value changes related to the cash convertible note hedge — — (5 ) Fair value changes related to the cash conversion option derivative — — 5 Total non-cash convertible debt related expense $ — $ — $ 13 |
Supplementary Balance Sheet information [Table Text Block] | cted supplementary balance sheet information is as follows (in millions): As of December 31, 2016 2015 Prepaid expenses $ 28 $ 37 Hedge receivables 3 25 Spare parts 21 17 Renewable energy credits 3 15 Other 17 23 Total prepaid expenses and other current assets $ 72 $ 117 Operating expenses, payroll and related expenses $ 164 $ 114 Deferred revenue 16 13 Accrued liabilities to client communities 19 22 Interest payable 30 24 Dividends payable 35 34 Other 25 27 Total accrued expenses and other current liabilities $ 289 $ 234 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income tax expense were as follows (in millions): For the Years Ended December 31, 2016 2015 2014 Current: Federal $ (2 ) $ (91 ) $ (1 ) State 6 16 4 Foreign (2 ) 2 3 Total current 2 (73 ) 6 Deferred: Federal 28 7 (4 ) State (9 ) (11 ) 16 Foreign 1 (7 ) (3 ) Total deferred 20 (11 ) 9 Total income tax expense (benefit) $ 22 $ (84 ) $ 15 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Domestic and foreign pre-tax income (loss) was as follows (in millions): For the Years Ended December 31, 2016 2015 2014 Domestic $ 26 $ 6 $ 14 Foreign (12 ) (34 ) (10 ) Total $ 14 $ (28 ) $ 4 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of our income tax expense (benefit) at the federal statutory income tax rate of 35% to income tax expense (benefit) at the effective tax rate is as follows (in millions): For the Years Ended December 31, 2016 2015 2014 Income tax expense (benefit) at the federal statutory rate $ 5 $ (10 ) $ 1 State and other tax expense 1 1 8 Tax rate differential on foreign earnings 4 8 5 Permanent differences 4 4 4 Production tax credits/R&E tax credits — (3 ) (4 ) State ITC credit (4 ) — — Change in valuation allowance 2 (7 ) 3 Liability for uncertain tax positions 16 (82 ) 5 Adjustment to deferred tax (5 ) 4 (9 ) Other (1 ) 1 2 Total income tax expense (benefit) $ 22 $ (84 ) $ 15 |
Summary of Operating Loss Carryforwards [Table Text Block] | We had consolidated federal NOLs estimated to be approximately $288 million for federal income tax purposes as of the end of 2016 . These consolidated federal NOLs will expire, if not used, in the following amounts in the following years (in millions): Amount of Carryforward Expiring 2028 $ 64 2030 29 2031 1 2032 1 2033 193 $ 288 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences that give rise to the deferred tax assets and liabilities are presented as follows (in millions): As of December 31, 2016 2015 Deferred tax assets: Capital loss carryforward $ — $ 3 Net operating loss carryforwards 143 157 Accrued expenses 20 24 Prepaid and other costs 71 36 Deferred tax assets attributable to pass-through entities 17 17 Retirement benefits 3 — Other 4 4 AMT and other credit carryforwards 55 67 Total gross deferred tax asset 313 308 Less: valuation allowance (71 ) (73 ) Total deferred tax asset 242 235 Deferred tax liabilities: Unbilled accounts receivable 3 4 Property, plant and equipment 780 725 Intangible assets 36 18 Deferred tax liabilities attributable to pass-through entities 22 26 Deferred gain on convertible debt 13 20 Swap income — 2 Prepaid expenses — 23 Other, net 5 11 Total gross deferred tax liability 859 829 Net deferred tax liability $ 617 $ 594 |
Reconciliation Of Beginning And Ending Amounts Of Unrecognized Tax Benefits [Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Balance at December 31, 2013 $ 128 Additions based on tax positions related to the current year 8 Additions for tax positions of prior years — Reductions for lapse in applicable statute of limitations (3 ) Reductions for tax positions of prior years — Balance at December 31, 2014 133 Additions based on tax positions related to the current year 12 Additions for tax positions of prior years — Reductions for lapse in applicable statute of limitations — Reductions for tax positions of prior years (109 ) Balance at December 31, 2015 36 Additions based on tax positions related to the current year 16 Additions for tax positions of prior years 4 Reductions for lapse in applicable statute of limitations (3 ) Reductions for tax positions of prior years (4 ) Payment (6 ) Balance at December 31, 2016 $ 43 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes To Financial Statements [Abstract] | |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | The following table is a reconciliation of the changes in the benefit obligations and fair value of assets for our non-qualified defined benefit pension plan and other postretirement benefit plan, the funded status (using a December 31 measurement date) of the plans and the related amounts recognized in our consolidated balance sheets (in millions, except percentages as noted): Non-qualified Pension Benefits Other Benefits For the Years Ended December 31, For the Years Ended December 31, 2016 2015 2016 2015 Change in benefit obligation: Benefit obligation at beginning of year $ 4 $ 4 $ 4 $ 5 Actuarial gain — — (1 ) (1 ) Benefits paid (3 ) — — — Benefit obligation at end of year $ 1 $ 4 $ 3 $ 4 Change in plan assets: Plan assets at fair value at beginning of year $ — $ — $ — $ — Contributions 3 — — — Benefits paid (3 ) — — — Plan assets at fair value at end of year $ — $ — $ — $ — Reconciliation of accrued benefit liability and net amount recognized: Funded status of the plan $ (1 ) $ (4 ) $ (3 ) $ (4 ) Unrecognized net gain — — — — Net amount recognized $ (1 ) $ (4 ) $ (3 ) $ (4 ) Accumulated other comprehensive income recognized: Net actuarial gain $ — $ — $ (4 ) $ (4 ) Net prior service cost (1 ) (1 ) — — Total as of December 31, $ (1 ) $ (1 ) $ (4 ) $ (4 ) Weighted average assumptions used to determine net periodic benefit expense for years ending December 31: Discount rate 4.35 % 4.05 % 3.75 % 3.50 % Weighted average assumptions used to determine projected benefit obligations as of December 31: Discount rate 4.10 % 4.35 % 3.55 % 3.75 % |
STOCK-BASED AWARD PLANS (Tables
STOCK-BASED AWARD PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Based Compensation Expense By Award Type [Text Block] | Stock-based compensation expense is as follows (in millions, except for weighted average years): As of December 31, 2016 Total Compensation Expense for the Years Ended December 31, Unrecognized stock-based compensation expense Weighted-average years to be recognized 2016 2015 2014 Restricted Stock Awards $ 10 $ 11 $ 11 $ 7 1.4 Restricted Stock Units $ 6 $ 6 $ 6 $ 8 2.1 |
Schedule Of Share Based Compensation Restricted Stock Awards Activity Table [Text Block] | Changes in nonvested restricted stock awards were as follows (in thousands, except per share amounts): As of December 31, 2016 2015 2014 Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Nonvested at the beginning of the year 1,060 $ 19.79 1,240 $ 17.67 1,166 $ 17.85 Granted 761 $ 15.14 573 $ 21.88 721 $ 17.20 Vested (532 ) $ 19.36 (661 ) $ 17.69 (608 ) $ 17.27 Forfeited (69 ) $ 17.51 (92 ) $ 19.36 (39 ) $ 17.80 Nonvested at the end of the year 1,220 $ 17.20 1,060 $ 19.79 1,240 $ 17.67 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Changes in nonvested restricted stock units were as follows (in thousands, except per share amounts): As of December 31, 2016 2015 2014 Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Number of Shares Weighted- Average Grant Date Fair Value Nonvested at the beginning of the year 1,189 $ 17.60 894 $ 15.93 691 $ 16.66 Granted 888 $ 14.65 322 $ 21.95 247 $ 14.60 Vested (51 ) $ 20.24 (21 ) $ 17.94 (44 ) $ 16.51 Forfeited (223 ) $ 16.29 (6 ) $ 21.99 — $ — Nonvested at the end of the year 1,803 $ 16.25 1,189 $ 17.60 894 $ 15.93 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes activity and balance information of the options under the 2014 Stock Option Plan: As of December 31, 2016 2015 2014 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price 2014 Stock Option Plan (in thousands, except per share amounts) Outstanding at the beginning of the year 1,100 $ 21.37 1,113 $ 21.25 1,686 $ 20.42 Granted — $ — — $ — 25 $ 20.58 Exercised — $ — (13 ) $ 11.40 (532 ) $ 18.53 Expired (20 ) $ — — $ — (66 ) $ 20.52 Forfeited — $ — — $ — — $ — Outstanding at the end of the year 1,080 $ 21.38 1,100 $ 21.37 1,113 $ 21.25 Options exercisable at year end 1,080 $ 21.38 1,100 $ 21.37 1,100 $ 21.26 Options available for future grant 4,003 5,652 6,548 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | As of December 31, 2016 , options for shares were in the following price ranges (in thousands, except years and per share amounts): Weighted Average Remaining Contractual Life (Years) Options Outstanding Options Exercisable Exercise Price Range Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price $20.52 — $20.58 850 $ 20.52 0.4 850 $ 20.52 $23.30 — $24.76 230 $ 24.57 1.4 230 $ 24.57 1,080 1,080 |
COMMITMENTS AND CONTINGENCIES46
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes To Financial Statements [Abstract] | |
Other Commitments | Other commitments as of December 31, 2016 were as follows (in millions): Commitments Expiring by Period Total Less Than One Year More Than One Year Letters of credit issued under the Revolving Credit Facility $ 156 $ — $ 156 Letters of credit - other 61 — 61 Surety bonds 158 — 158 Total other commitments — net $ 375 $ — $ 375 |
QUARTERLY DATA (UNAUDITED) (Tab
QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
QUARTERLY DATA (UNAUDITED) [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The following table presents quarterly unaudited financial data for the periods presented on the consolidated statements of operations (in millions, except per share amounts): Calendar Quarter Ended March 31, June 30, September 30, December 31, 2016 2015 2016 2015 2016 2015 2016 2015 Operating revenue $ 403 $ 383 $ 418 $ 408 $ 421 $ 422 $ 457 $ 432 Operating (loss) income (1) $ (14 ) $ 7 $ 5 $ (15 ) $ 60 $ 74 $ 58 $ 43 Net (loss) income $ (37 ) $ (37 ) $ (29 ) $ (6 ) $ 54 $ 34 $ 8 $ 78 Net (loss) income attributable to Covanta Holding Corporation $ (37 ) $ (37 ) $ (29 ) $ (6 ) $ 54 $ 34 $ 8 $ 77 (Loss) Earnings per share attributable to Covanta Holding Corporation stockholders: Basic $ (0.29 ) $ (0.28 ) $ (0.23 ) $ (0.05 ) $ 0.42 $ 0.26 $ 0.06 $ 0.59 Diluted $ (0.29 ) $ (0.28 ) $ (0.23 ) $ (0.05 ) $ 0.42 $ 0.25 $ 0.06 $ 0.58 Cash dividend declared per share: $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 |
SCHEDULE II VALUATION AND QUA48
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |
Summary of Valuation Allowance | Additions Balance Beginning of Year Charged to Costs and Expense Charged to Other Accounts Deductions Balance at End of Period (In millions) 2016 – Reserves for doubtful accounts $ 7 $ 3 $ — $ 1 $ 9 2015 – Reserves for doubtful accounts $ 6 $ 1 $ — $ — $ 7 2014 – Reserves for doubtful accounts $ 4 $ 4 $ — $ 2 $ 6 |
Organization and Summary of S49
Organization and Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Thousands, ton in Millions, MW in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016USD ($)MWtonFacility | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)MWtonFacility | Dec. 31, 2016USD ($)MWtonFacility | Dec. 31, 2016USD ($)MWtonFacility | Dec. 31, 2016USD ($)MWtonFacilitySegment | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($) | ||
Organization (additional details) [Abstract] | |||||||||||||||
Annual processing capacity | ton | 20 | 20 | 20 | 20 | 20 | ||||||||||
Number of Operate and/or ownership positions in energy generation facilities | Facility | 42 | 42 | 42 | 42 | 42 | ||||||||||
Number of Operate and/or ownership positions in energy generation facilities | Facility | 5 | 5 | 5 | 5 | 5 | ||||||||||
Annual generation capacity of megawatt hours | MW | 10 | 10 | 10 | 10 | 10 | ||||||||||
Number of Reportable Segments | 1 | 1 | |||||||||||||
Segment Reporting, Additional Information about Entity's Reportable Segments | North America, which is comprised of waste and energy services operations located primarily in the United States and Canada. | ||||||||||||||
Pass Through Costs [Abstract] | |||||||||||||||
Pass through costs | $ 41 | $ 52 | $ 59 | ||||||||||||
Restricted Funds Held in Trust [Abstract] | |||||||||||||||
Restricted funds held in trust, current | $ 56 | $ 77 | $ 56 | 56 | $ 56 | $ 56 | 77 | ||||||||
Restricted funds held in trust, noncurrent | 54 | 83 | 54 | 54 | 54 | 54 | 83 | ||||||||
Deferred Revenue [Abstract] | |||||||||||||||
Deferred Revenue, Current | 16 | 13 | 16 | 16 | 16 | 16 | 13 | ||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||
Land | 29 | 22 | 29 | 29 | 29 | 29 | 22 | ||||||||
Facilities And Equipment Gross | 4,188 | 3,885 | 4,188 | 4,188 | 4,188 | 4,188 | 3,885 | ||||||||
Landfill Gross | 63 | 64 | 63 | 63 | 63 | 63 | 64 | ||||||||
Construction in Progress, Gross | 433 | 266 | 433 | 433 | 433 | 433 | 266 | ||||||||
Property, Plant and Equipment, Gross | 4,713 | 4,237 | 4,713 | 4,713 | 4,713 | 4,713 | 4,237 | ||||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (1,689) | (1,547) | (1,689) | (1,689) | (1,689) | (1,689) | (1,547) | ||||||||
Property, plant and equipment, net | 3,024 | 2,690 | 3,024 | 3,024 | 3,024 | 3,024 | 2,690 | ||||||||
Depreciation | 185 | 177 | 191 | ||||||||||||
Capital Expenditures Incurred but Not yet Paid | 41 | 26 | |||||||||||||
Asset Retirement Obligation [Abstract] | |||||||||||||||
Asset Retirement Obligation, Liabilities Settled | 25 | 30 | 25 | 25 | 25 | 25 | 30 | 28 | |||||||
Asset Retirement Obligation, Accretion Expense | 2 | 2 | |||||||||||||
Asset Retirement Obligation, Liabilities Incurred | [1] | (7) | 0 | ||||||||||||
Asset Retirement Obligation, Current | 0 | (3) | 0 | 0 | 0 | 0 | (3) | ||||||||
Asset Retirement Obligations, Noncurrent | 25 | 27 | 25 | 25 | 25 | 25 | 27 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (62) | (34) | (62) | (62) | (62) | (62) | (34) | (22) | |||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (23) | (12) | |||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (5) | 0 | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax | (28) | (12) | |||||||||||||
Net unrealized (loss) gain on derivative instruments, net of tax (benefit) expense of $(8), $7, and $2, respectively | (21) | 10 | (7) | ||||||||||||
Foreign currency translation | (7) | (22) | (12) | ||||||||||||
Gain on asset sales | 44 | 0 | 0 | ||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 14 | (28) | 4 | ||||||||||||
Net Income (Loss) Attributable to Parent | 8 | $ 54 | $ (29) | $ (37) | 77 | $ 34 | $ (6) | $ (37) | (4) | 68 | (2) | ||||
Accounting Changes [Abstract] | |||||||||||||||
Net Interest Expense On Project Debt | (1) | 3 | 5 | 2 | 9 | 10 | |||||||||
Loss on Contracts | 20 | ||||||||||||||
Deferred Finance Costs, Current, Net | 5 | 5 | |||||||||||||
Deferred Finance Costs, Noncurrent, Net | 20 | 20 | |||||||||||||
Retained Earnings (Accumulated Deficit) | (289) | (143) | (289) | (289) | (289) | (289) | (143) | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (45) | (45) | |||||||||||||
Deferred income taxes | 617 | 595 | 617 | 617 | 617 | 617 | 595 | ||||||||
Plant operating expenses | 1,177 | 1,129 | 1,055 | ||||||||||||
Depreciation and amortization expense | 207 | 198 | 211 | ||||||||||||
Income Tax Expense (Benefit) | 22 | (84) | 15 | ||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 8 | $ 54 | $ (29) | $ (37) | 78 | $ 34 | $ (6) | $ (37) | (4) | 69 | (1) | ||||
Up-front Payment Arrangement [Member] | |||||||||||||||
Deferred Revenue [Abstract] | |||||||||||||||
Deferred Revenue, Current | 5 | 6 | 5 | 5 | 5 | 5 | 6 | ||||||||
All Other [Member] | |||||||||||||||
Deferred Revenue [Abstract] | |||||||||||||||
Deferred Revenue, Current | 11 | 7 | 11 | 11 | 11 | 11 | 7 | ||||||||
Debt Service Funds [Member] | |||||||||||||||
Restricted Funds Held in Trust [Abstract] | |||||||||||||||
Restricted funds held in trust, current | 11 | 10 | 11 | 11 | 11 | 11 | 10 | ||||||||
Restricted funds held in trust, noncurrent | 7 | 8 | 7 | 7 | 7 | 7 | 8 | ||||||||
Debt Service Funds [Member] | Principal Amount [Member] | |||||||||||||||
Restricted Funds Held in Trust [Abstract] | |||||||||||||||
Restricted funds held in trust, current | 10 | 9 | 10 | 10 | 10 | 10 | 9 | ||||||||
Restricted funds held in trust, noncurrent | 7 | 8 | 7 | 7 | 7 | 7 | 8 | ||||||||
Debt Service Funds [Member] | Interest Amount [Member] | |||||||||||||||
Restricted Funds Held in Trust [Abstract] | |||||||||||||||
Restricted funds held in trust, current | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||
Restricted funds held in trust, noncurrent | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Revenue Funds [Member] | |||||||||||||||
Restricted Funds Held in Trust [Abstract] | |||||||||||||||
Restricted funds held in trust, current | 3 | 4 | 3 | 3 | 3 | 3 | 4 | ||||||||
Restricted funds held in trust, noncurrent | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Other Funds [Member] | |||||||||||||||
Restricted Funds Held in Trust [Abstract] | |||||||||||||||
Restricted funds held in trust, current | 42 | 63 | 42 | 42 | 42 | 42 | 63 | ||||||||
Restricted funds held in trust, noncurrent | 47 | 75 | $ 47 | 47 | 47 | 47 | 75 | ||||||||
Computer Equipment [Member] | Minimum [Member] | |||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||
Original useful lives for equipment | 3 years | ||||||||||||||
Equipment [Member] | Maximum [Member] | |||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||
Original useful lives for equipment | 50 years | ||||||||||||||
Scenario, Previously Reported [Member] | |||||||||||||||
Accounting Changes [Abstract] | |||||||||||||||
Retained Earnings (Accumulated Deficit) | 15 | ||||||||||||||
Accounting Standards Update 2014-05 [Member] | |||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||
Property, plant and equipment, net | 75 | ||||||||||||||
Accounting Changes [Abstract] | |||||||||||||||
Retained Earnings (Accumulated Deficit) | 60 | ||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 45 | ||||||||||||||
Deferred income taxes | 30 | ||||||||||||||
Plant operating expenses | 31 | ||||||||||||||
Depreciation and amortization expense | (22) | ||||||||||||||
Income Tax Expense (Benefit) | (4) | ||||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (5) | ||||||||||||||
Earnings Per Share, Basic and Diluted | $ / shares | $ (40) | ||||||||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||||||||||||||
Accounting Changes [Abstract] | |||||||||||||||
Deferred Tax Assets, Net, Current | 67 | $ 67 | |||||||||||||
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (41) | (34) | $ (41) | (41) | (41) | (41) | (34) | (12) | |||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (2) | (22) | |||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (5) | 0 | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax | (7) | (22) | |||||||||||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2) | (2) | (2) | (2) | (2) | (2) | (2) | (2) | |||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | |||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | |||||||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (23) | $ (2) | $ (23) | (23) | $ (23) | $ (23) | (2) | $ (12) | |||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (21) | 10 | |||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax | $ 10 | ||||||||||||||
Net unrealized (loss) gain on derivative instruments, net of tax (benefit) expense of $(8), $7, and $2, respectively | (21) | ||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||
Gain on asset sales | 5 | ||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 5 | ||||||||||||||
Net Income (Loss) Attributable to Parent | 5 | ||||||||||||||
Accounting Changes [Abstract] | |||||||||||||||
Income Tax Expense (Benefit) | $ 0 | ||||||||||||||
[1] | Comprised primarily of expenditures and settlements of the asset retirement obligation liability, net revisions based on current estimates of the liability and revised expected cash flows and life of the liability. |
New Business and Asset Manage50
New Business and Asset Management (Details) € in Millions, CAD in Millions, $ in Millions | 12 Months Ended | 48 Months Ended | |||||
Dec. 31, 2016USD ($)ton | Dec. 31, 2016EUR (€)MWton | Dec. 31, 2015CADton | Dec. 31, 2015USD ($)ton | Dec. 31, 2015EUR (€)ton | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) | |
Environmental Services [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Payments to Acquire Businesses, Gross | $ 9 | $ 69 | $ 13 | ||||
Pinellas County EfW [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Contract Duration | 10 years | ||||||
Capacity Per Day | ton | 3,150 | ||||||
Dublin EfW Facility [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Capacity Of Facility | ton | 600,000 | 600,000 | |||||
Total Electricity Produced | MW | 58 | ||||||
Percentage Of Production Capacity | 50.00% | ||||||
Contract Duration | 45 years | 45 years | |||||
Estimated Investment For Project | € | € 500 | ||||||
Capital Invested In Project | € | € (125) | ||||||
Non-Recourse Debt | € | € 375 | ||||||
NYC Waste Contract [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Contract Duration | 20 years | 20 years | |||||
Estimated Investment For Project | $ 150 | ||||||
Capital Invested In Project | $ (3) | $ (31) | $ (59) | $ (115) | |||
Estimated Total Annual Waste | ton | 800,000 | 800,000 | |||||
Estimated Capital Expenditures For Project | $ 114 | ||||||
Estimated Capital Improvements | 36 | ||||||
Durham York EfW Facility [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Capacity Of Facility | ton | 140,000 | 140,000 | 140,000 | ||||
Contract Duration | 20 years | 20 years | 20 years | ||||
Estimated Construction Cost | CAD | CAD 250 | ||||||
Pittsfield [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Other Nonrecurring (Income) Expense | $ 13 |
Dispositions and Other (additio
Dispositions and Other (additional information) (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on asset sales | $ 44 | $ 0 | $ 0 | |||
Cost Method Investments, Original Cost | 70 | |||||
Disposal Group, Including Discontinued Operation, Foreign Currency Translation Gains (Losses) | $ 5 | |||||
Insurance business [Member] | ||||||
Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Other Nonrecurring (Income) Expense | $ 14 | |||||
Taixing [Member] | ||||||
Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale of Stock, Percentage of Ownership before Transaction | 85.00% | |||||
Chengdu [Member] | ||||||
Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale of Stock, Percentage of Ownership before Transaction | 49.00% | |||||
Equity Method Investment, Ownership Percentage | [1] | 0.00% | 49.00% | |||
Sanfeng [Member] | ||||||
Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | [1] | 0.00% | 40.00% | |||
Sanfeng Environmental [Member] | ||||||
Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale of Stock, Percentage of Ownership after Transaction | 15.00% | |||||
Percentage of Investment Sold | 90.00% | |||||
Gain on asset sales | $ 41 | |||||
Proceeds from Sales of Assets, Investing Activities | $ 100 | 105 | ||||
Cost Method Investments | $ 7 | |||||
[1] | During 2016, we divested the majority of our investments in China, see Note 4. Dispositions, Assets Held for Sale and Discontinued Operations for additional information. |
Assets Held for Sale Summary (D
Assets Held for Sale Summary (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 0 | $ 97 |
Liabilities held for sale | 0 | 23 |
CHINA | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | 0 | 2 |
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 0 | 3 |
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets | 0 | 1 |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 0 | 49 |
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 0 | 42 |
Disposal Group, Project Debt Current | 0 | 3 |
Disposal Group, Including Discontinued Operation, Accounts Payable | 0 | 3 |
Disposal Group, Including Discontinued Operation, Accrued Liabilities, Current | 0 | 5 |
Disposal Group, Project Debt Noncurrent | $ 0 | $ 12 |
Discontinued Operations Income
Discontinued Operations Income Statements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Assets Held for Sale Income Statement [Abstract] | |
Revenues | $ 1 |
Disposal Group, Including Discontinued Operation, Operating Expense | $ 1 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Repurchased In Period | 210,438 | |||||||||||
Common Stock Repurchased - Amount | $ 18 | $ 32 | $ 0 | |||||||||
Common Stock Repurchased - Shares Repurchased | 1,200,000 | 2,100,000 | 0 | |||||||||
Common Stock Repurchased - Weighted Average Cost Per Share | $ 15.29 | $ 15.33 | $ 0 | |||||||||
Dividends, Common Stock | $ 132 | $ 133 | $ 114 | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 1 | $ 1 | $ 0.86 | |
Common Stock, Shares, Issued | 136,000,000 | 136,000,000 | 136,000,000 | 136,000,000 | ||||||||
Common stock, shares outstanding | 130,000,000 | 131,000,000 | 130,000,000 | 131,000,000 | ||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 4,000,000 | 4,000,000 | ||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||
Restricted Stock [Member] | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 761,426 | |||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 356,622 | 888,144 | 322,000 | 247,000 |
Earnings Per Share Computations
Earnings Per Share Computations (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Common stock, par value | $ 0.10 | $ 0.10 | |
Weighted Average Number of Shares Outstanding, Basic | 129,000,000 | 132,000,000 | 130,000,000 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 1,000,000 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 129,000,000 | 133,000,000 | 130,000,000 |
Shares issuable from warrant exercises | 1,430,870 | ||
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,000,000 | 1,000,000 | 1,000,000 |
Restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,000,000 | 0 | 1,000,000 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,000,000 | 0 | 0 |
Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 25,000,000 |
Financial Information by Busi56
Financial Information by Business Segments - Additional Information (Details) - 12 months ended Dec. 31, 2016 | Total | Total | Segment |
Disclosure FINANCIAL INFORMATION BY BUSINESS SEGMENTS Additional Information [Abstract] | |||
Number of reportable segments | 1 | 1 | |
Segment Reporting, Additional Information about Entity's Reportable Segments | North America, which is comprised of waste and energy services operations located primarily in the United States and Canada. |
Results of Reportable Segment (
Results of Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | $ 457 | $ 421 | $ 418 | $ 403 | $ 432 | $ 422 | $ 408 | $ 383 | $ 1,699 | $ 1,645 | $ 1,682 | |
Depreciation and amortization expense | 207 | 198 | 211 | |||||||||
Net write-offs (gains) | 20 | 43 | 64 | |||||||||
Operating Income (Loss) | 58 | $ 60 | $ 5 | $ (14) | 43 | $ 74 | $ (15) | $ 7 | 109 | 109 | 154 | |
Segment Interest Expense Including Net Interest On Project Debt | 138 | 134 | 147 | |||||||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 44 | |||||||||||
Equity in net income from unconsolidated investments | 4 | 13 | 10 | |||||||||
Assets | 4,284 | 4,234 | 4,284 | 4,234 | 4,179 | |||||||
Payments to Acquire Productive Assets | 359 | 376 | 216 | |||||||||
Assets held for sale | 0 | 97 | 0 | 97 | ||||||||
Assets Held-for-sale [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets held for sale | 0 | 97 | 0 | 97 | 96 | |||||||
United States [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 1,677 | 1,589 | 1,567 | |||||||||
Assets | 3,763 | 3,847 | 3,763 | 3,847 | 3,802 | |||||||
Other Countries [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 22 | 56 | 115 | |||||||||
Assets | 521 | 290 | 521 | 290 | 281 | |||||||
North America [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 1,692 | 1,607 | 1,641 | |||||||||
Depreciation and amortization expense | 207 | 197 | 208 | |||||||||
Net write-offs (gains) | 20 | 43 | 50 | |||||||||
Operating Income (Loss) | 116 | 108 | 168 | |||||||||
Segment Interest Expense Including Net Interest On Project Debt | 66 | 60 | 63 | |||||||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 3 | |||||||||||
Equity in net income from unconsolidated investments | 1 | 0 | 0 | |||||||||
Assets | 3,794 | 3,838 | 3,794 | 3,838 | 3,882 | |||||||
Payments to Acquire Productive Assets | 188 | 175 | 188 | |||||||||
All Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | [1] | 7 | 38 | 41 | ||||||||
Depreciation and amortization expense | [1] | 0 | 1 | 3 | ||||||||
Net write-offs (gains) | [1] | 0 | 0 | 14 | ||||||||
Operating Income (Loss) | [1] | (7) | 1 | (14) | ||||||||
Segment Interest Expense Including Net Interest On Project Debt | [1] | 72 | 74 | 84 | ||||||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 41 | |||||||||||
Equity in net income from unconsolidated investments | [1] | 3 | 13 | 10 | ||||||||
Assets | [1] | $ 490 | $ 396 | 490 | 396 | 297 | ||||||
Payments to Acquire Productive Assets | [1] | $ 171 | $ 201 | $ 28 | ||||||||
[1] | (1)All other is comprised of the financial results of our insurance subsidiaries’ operations through the date of disposal and our international assets. |
Amortization of Waste Service E
Amortization of Waste Service Energy Contract Intangible (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Waste Service Energy Contract Intangible [Line Items] | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 8 years | |
Finite-Lived Intangible Assets, Net | $ 263 | |
Waste And Service Contracts Noncurrent | $ (7) | $ (13) |
Waste Service And Energy Contracts Intangible Assets [Member] | ||
Waste Service Energy Contract Intangible [Line Items] | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 22 years | |
Finite-Lived Intangible Assets, Gross | $ 526 | 531 |
Finite-Lived Intangible Assets, Accumulated Amortization | 263 | 247 |
Finite-Lived Intangible Assets, Net | $ 263 | 284 |
Waste And Service Contracts Intangible Liabilities [Member] | ||
Waste Service Energy Contract Intangible [Line Items] | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years | |
Waste And Service Contracts Gross Noncurrent | $ (131) | (131) |
Waste And Service Contracts Accumulated Amortization Noncurrent | (124) | (118) |
Waste And Service Contracts Noncurrent | $ (7) | $ (13) |
Amortization of Waste Service59
Amortization of Waste Service Energy Contract Intangible Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Waste Service Energy Contract Intangible Expense [Line Items] | |||
Cost of Services, Amortization | $ 6 | $ 2 | $ 1 |
Finite-Lived Intangible Assets, Net | 263 | ||
Waste And Service Contracts Noncurrent | $ 7 | 13 | |
Finite-Lived Intangible Asset, Weighted Average Period before Next Renewal or Extension | 6 years | ||
Waste Service And Energy Contracts Intangible Assets [Member] | |||
Waste Service Energy Contract Intangible Expense [Line Items] | |||
Cost of Services, Amortization | $ 21 | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 14 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 13 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 13 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 13 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 13 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 197 | ||
Finite-Lived Intangible Assets, Net | 263 | 284 | |
Waste And Service Contracts Intangible Liabilities [Member] | |||
Waste Service Energy Contract Intangible Expense [Line Items] | |||
Cost Of Services Accretion | (6) | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | (2) | ||
Future Accretion Expense Year Two | (2) | ||
Future Accretion Expense Year Three | (2) | ||
Future Accretion Expense Year Four | (1) | ||
Future Accretion Expense Year Five | 0 | ||
Future Accretion Expense After Year Five | 0 | ||
Waste And Service Contracts Noncurrent | $ 7 | $ 13 | |
Contract-Based Intangible Assets [Member] | |||
Waste Service Energy Contract Intangible Expense [Line Items] | |||
Other Nonrecurring (Income) Expense | $ 16 |
Other Intangible Assets (Detail
Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Other Finite and Infinite Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 8 years | ||
Intangible Assets Gross Excluding Goodwill | $ 47 | $ 44 | |
Intangible Assets Accumulated Amortization | 13 | 6 | |
Other intangible assets, net | 34 | 38 | |
Cost of Services, Amortization | 6 | 2 | $ 1 |
Other Intangible Assets [Member] | |||
Schedule of Other Finite and Infinite Intangible Assets [Line Items] | |||
Intangible Assets Gross Excluding Goodwill | 4 | 4 | |
Intangible Assets Accumulated Amortization | 0 | 0 | |
Other intangible assets, net | 4 | 4 | |
Customer Relationships [Member] | |||
Schedule of Other Finite and Infinite Intangible Assets [Line Items] | |||
Intangible Assets Gross Excluding Goodwill | 43 | 40 | |
Intangible Assets Accumulated Amortization | 13 | 6 | |
Other intangible assets, net | 30 | $ 34 | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 5 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 5 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 5 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 4 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 3 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 8 |
Schedule of Goodwill (Details)
Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Goodwill [Abstract] | |||
Goodwill Deductible For Federal Income Tax Purpose | $ 56 | ||
Goodwill | 302 | $ 301 | $ 274 |
Goodwill, Acquired During Period | $ 1 | $ 27 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Investments in investees and joint ventures | $ 5 | $ 10 | |
Disposal Group Investments | $ 0 | $ 39 | |
South Fork Plant [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |
Investments in investees and joint ventures | $ 0 | $ 0 | |
Koma Kulshan Plant [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |
Investments in investees and joint ventures | $ 4 | $ 5 | |
TARTECH (U.S.) [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | [1] | 50.00% | 50.00% |
Investments in investees and joint ventures | [1] | $ 1 | $ 5 |
Ambiente 2000 [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | |
Investments in investees and joint ventures | $ 0 | $ 0 | |
Sanfeng [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | [2] | 0.00% | 40.00% |
Disposal Group Investments | [2] | $ 0 | $ 17 |
Chengdu [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | [2] | 0.00% | 49.00% |
Disposal Group Investments | [2] | $ 0 | $ 22 |
[1] | During 2016, we recorded a net impairment of our investment in this joint venture, see Note 14. Supplementary Information for additional information. | ||
[2] | During 2016, we divested the majority of our investments in China, see Note 4. Dispositions, Assets Held for Sale and Discontinued Operations for additional information. |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense | $ 19 | $ 16 | $ 15 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 8 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 7 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 6 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 6 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 6 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 24 | ||
Operating Leases, Future Minimum Payments Due | $ 57 |
Consolidated Debt Table (Detail
Consolidated Debt Table (Details) € in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Aug. 01, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2012USD ($) | |
Long-term Debt | $ 2,252 | $ 2,263 | |||||
Total Long Term Debt, Senior Notes and Debentures | 1,186 | 1,184 | |||||
Total Long Term Debt, Tax Exempt Bonds | 459 | 458 | |||||
Long-term Debt, Current Maturities | 9 | 8 | |||||
Long-term Debt, Excluding Current Maturities | 2,243 | 2,255 | |||||
Project Debt | 383 | 198 | |||||
Other Project Debt | 187 | 54 | |||||
Current portion of project debt | (22) | (16) | |||||
Project Debt Noncurrent | 361 | 182 | |||||
Debt, Total | 2,635 | 2,461 | |||||
Debt, Current | (31) | (24) | |||||
Debt, Noncurrent | $ 2,604 | 2,437 | |||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 4.52% | ||||||
North America [Member] | |||||||
Project Debt | $ 196 | 144 | |||||
Project Debt Type [Member] | |||||||
Debt Discount, current | (1) | ||||||
Capital Lease Obligations | 99 | 0 | $ 104 | ||||
Debt Instrument, Unamortized Premium | 4 | ||||||
Current portion of project debt | (22) | ||||||
Project Debt Noncurrent | $ 361 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 298.00% | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 323.00% | ||||||
Term Loan [Member] | |||||||
Long-term Debt | $ 196 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 248.00% | 248.00% | |||||
Senior Notes 7.25 Percent Due 2020 [Member] | |||||||
Long-term Debt | $ 400 | 400 | |||||
Senior Notes 6.375 Percent Due 2022 [Member] | |||||||
Long-term Debt | 400 | 400 | $ 400 | ||||
Senior Notes 5.875 Percent Due 2024 [Member] | |||||||
Long-term Debt | 400 | 400 | $ 400 | ||||
Tax Exempt Bonds due 2024 to 2045 [Member] | |||||||
Long-term Debt | 464 | ||||||
Tax Exempt Bonds due 2024 to 2042 [Member] | |||||||
Long-term Debt | $ 464 | 464 | |||||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 400.00% | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 525.00% | ||||||
Americas Project Debt Related To Service Fee Structures [Member] | |||||||
Project Debt | $ 78 | 117 | |||||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 400.00% | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 500.00% | ||||||
Americas Project Debt Related To Tip Fee Structures [Member] | |||||||
Project Debt | $ 16 | 23 | |||||
Debt Instrument, Unamortized Premium | 5 | ||||||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 525.00% | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 620.00% | ||||||
Covanta Delaware Valley L P [Member] | Variable Rate Tax Exempt Bond due 2043 [Member] | |||||||
Long-term Debt | $ 34 | ||||||
Long-term Debt, Current Maturities | $ 6 | ||||||
Dublin EfW Facility [Member] | Senior Loans [Member] | |||||||
Other Project Debt | 155 | € 147 | 0 | ||||
Debt Instrument, Unamortized Discount | (6) | 0 | |||||
Other Project Debt, net | $ 131 | 0 | |||||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 572.00% | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 641.00% | ||||||
Dublin EfW Facility [Member] | Junior Loans [Member] | |||||||
Deferred Finance Costs, Net | 2 | ||||||
Other Project Debt | $ 58 | 57 | |||||
Debt Instrument, Unamortized Discount | (1) | (1) | |||||
Other Project Debt, net | $ 56 | 54 | |||||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 923.00% | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 973.00% | ||||||
Senior Notes [Member] | |||||||
Deferred Finance Costs, Net | $ 14 | 16 | |||||
Tax Exempt Bond [Member] | |||||||
Deferred Finance Costs, Net | 5 | 6 | |||||
Project Debt Type [Member] | |||||||
Deferred Finance Costs, Net | 1 | 1 | |||||
Project Debt Type [Member] | Dublin EfW Facility [Member] | |||||||
Deferred Finance Costs, Net | 18 | $ 0 | |||||
Project Debt Type [Member] | Dublin EfW Facility [Member] | Junior Loans [Member] | |||||||
Deferred Finance Costs, Net | $ 1 |
Credit Facilities (Details)
Credit Facilities (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Credit Facilities (Additional Information) [Abstract] | |||
Credit Facilities | $ 1,200 | ||
Long-term Debt | 2,252 | $ 2,263 | |
Line of Credit Facility, Increase, Additional Borrowings | $ 744 | 895 | $ 531 |
Leverage Ratio Maximum | 2.75 | ||
Availability under Revolving Credit Facility [Abstract] | |||
Line of Credit Facility, Amount Outstanding | $ 538 | 548 | |
Repayments of Lines of Credit | $ 749 | 692 | $ 496 |
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Debt Instrument Covenant Total Leverage Ratio Maximum | 4 | ||
Debt Instrument Covenant Permitted Interest Ratio Minimum | 3 | ||
Revolving Credit Facility [Member] | |||
Credit Facilities (Additional Information) [Abstract] | |||
Credit Facilities | $ 1,000 | ||
Availability under Revolving Credit Facility [Abstract] | |||
Line of Credit Facility, Expiration Date | Apr. 10, 2020 | ||
Line of Credit Facility, Amount Outstanding | $ 343 | 348 | |
Letters of Credit Outstanding, Amount | 156 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 501 | ||
Term Loan [Member] | |||
Credit Facilities (Additional Information) [Abstract] | |||
Long-term Debt | 196 | ||
Availability under Revolving Credit Facility [Abstract] | |||
Line of Credit Facility, Amount Outstanding | 195 | $ 200 | |
Incremental Credit Facility [Member] | |||
Credit Facilities (Additional Information) [Abstract] | |||
Line of Credit Facility, Increase, Additional Borrowings | 500 | ||
Letters of credit [Member] | |||
Credit Facilities (Additional Information) [Abstract] | |||
Credit Facilities | $ 600 | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Percentage Of Fronting Fee | 0.15% | ||
Swingline Loans [Member] | Revolving Credit Facility [Member] | |||
Credit Facilities (Additional Information) [Abstract] | |||
Credit Facilities | $ 50 | ||
Federal Funds Rate [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
One Month L I B O R [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
L I B O R [Member] | Term Loan [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
L I B O R Interest Rate Floor | 2.00% | ||
Minimum [Member] | Revolving Credit Facility [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||
Minimum [Member] | Base Rate [Member] | Term Loan [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Minimum [Member] | Base Rate [Member] | Base Rate Loans [Member] | Revolving Credit Facility [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Minimum [Member] | L I B O R [Member] | Euro Dollar Rate [Member] | Revolving Credit Facility [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Maximum [Member] | Revolving Credit Facility [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||
Maximum [Member] | Base Rate [Member] | Base Rate Loans [Member] | Revolving Credit Facility [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Maximum [Member] | Base Rate [Member] | Base Rate Loans [Member] | Term Loan [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Maximum [Member] | L I B O R [Member] | Term Loan [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Maximum [Member] | L I B O R [Member] | Euro Dollar Rate [Member] | Revolving Credit Facility [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||
Foreign Subsidiaries [Member] | |||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | |||
Guarantee Percent | 65.00% | ||
Fiscal Year 2019 [Member] | |||
Credit Facilities Repayment Terms [Abstract] | |||
Debt Future Amortization Expense | $ 5 | ||
Fiscal Year 2020 [Member] | |||
Credit Facilities Repayment Terms [Abstract] | |||
Debt Future Amortization Expense | 181 | ||
Fiscal Year 2018 [Member] | |||
Credit Facilities Repayment Terms [Abstract] | |||
Debt Future Amortization Expense | 5 | ||
Fiscal Year 2017 [Member] | |||
Credit Facilities Repayment Terms [Abstract] | |||
Debt Future Amortization Expense | $ 5 |
7.25% Senior Notes (Details)
7.25% Senior Notes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2010 | |
Debt Instrument [Line Items] | ||||
Proceeds from borrowings on long-term debt | $ 0 | $ 294 | $ 412 | |
Senior Notes 7.25 Percent Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from borrowings on long-term debt | $ 400 | |||
Debt Instrument, Maturity Date | Dec. 1, 2020 | |||
Scenario 1 [Member] | Maximum [Member] | Senior Notes 7.25 Percent Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Redemption Price Percent Of Principal Amount | 101.00% | |||
Scenario 2 [Member] | Maximum [Member] | Senior Notes 7.25 Percent Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Redemption Price Percent Of Principal Amount | 100.00% |
6.375% Senior Notes (Details)
6.375% Senior Notes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2012 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 2,252 | $ 2,263 | |
Senior Notes 6.375 Percent Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 400 | $ 400 | $ 400 |
Debt Instrument, Maturity Date | Oct. 1, 2022 | ||
Proceeds from Debt, Net of Issuance Costs | 392 | ||
Gross Proceeds From Issuance Of Debt | 400 | ||
Offering Expense | $ 8 | ||
Scenario 1 [Member] | Senior Notes 6.375 Percent Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Redemption Price Percent Of Principal Amount | 100.00% |
CONSOLIDATED DEBT 5.875% Senior
CONSOLIDATED DEBT 5.875% Senior Notes due 2024 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 2,252 | $ 2,263 | |
Senior Notes 5.875 Percent Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 400 | $ 400 | $ 400 |
Debt Instrument, Maturity Date | Mar. 1, 2024 | ||
Debt Instrument, Date of First Required Payment | Sep. 1, 2014 | ||
Proceeds from Debt, Net of Issuance Costs | 393 | ||
Gross Proceeds From Issuance Of Debt | 400 | ||
Offering Expense | $ 7 | ||
Debt Instrument Percent Of Principal Amount | 35.00% | ||
3.25% Cash Convertible Senior Notes due 2014 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | Jun. 1, 2014 | Jun. 1, 2014 | |
Scenario 1 [Member] | Senior Notes 5.875 Percent Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Redemption Price Percent Of Principal Amount | 105.875% | ||
Scenario 2 [Member] | Senior Notes 5.875 Percent Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Redemption Price Percent Of Principal Amount | 100.00% |
3.25% Cash Convertible Senior N
3.25% Cash Convertible Senior Notes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2009 | |
Debt Instrument [Line Items] | ||||
Debt Instrument, Convertible, Terms of Conversion Feature | During the period from March 1, 2014 to May 30, 2014, and under certain additional limited circumstances, the 3.25% Notes were cash convertible by holders thereof (the "Cash Conversion Option"). The conversion rate was 64.6669 shares of our common stock (which represented a conversion price of approximately $15.46 per share) for the period from March 17, 2014 through March 21, 2014, and 65.3501 shares of our common stock (which represented a conversion price of approximately $15.30 per share), as adjusted for the dividend paid on April 2, 2014, for the period from March 24, 2014 to May 30, 2014. | |||
Payments related to cash conversion option | $ 0 | $ 0 | $ (83) | |
Shares issuable from warrant exercises | 1,430,870 | |||
3.25% Cash Convertible Senior Notes due 2014 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 460 | |||
Debt Instrument, Maturity Date | Jun. 1, 2014 | Jun. 1, 2014 | ||
Repayments of Debt | $ 460 | |||
Note Hedge [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Cash Received on Hedge | 83 | |||
Option on Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Payments related to cash conversion option | $ 83 |
Tax-Exempt Bonds (Details)
Tax-Exempt Bonds (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Aug. 01, 2015 | |
Debt Instrument [Line Items] | ||||||
Offering Expense | $ 6 | $ 11 | $ 36 | |||
Long-term Debt | 2,252 | 2,263 | ||||
Long-term Debt, Current Maturities | 9 | 8 | ||||
Tax Exempt Bonds due 2024 to 2045 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Unsecured Tax Exempt Debt | $ 130 | $ 335 | ||||
Offering Expense | 7 | |||||
Long-term Debt | 464 | |||||
Massachusetts Series 2012A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 20 | |||||
Debt Instrument Maturity Year | 2,027 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | |||||
Massachusetts Series 2012B [Member] [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 67 | |||||
Debt Instrument Maturity Year | 2,042 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | |||||
Massachusetts Series 2012C [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 82 | |||||
Debt Instrument Maturity Year | 2,042 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||||
Niagara Series 2012A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 130 | |||||
Debt Instrument Maturity Year | 2,042 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||||
Niagara Series 2012B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 35 | |||||
Debt Instrument Maturity Year | 2,024 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |||||
New Jersey Series 2015A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 90 | |||||
Debt Instrument Maturity Year | 2,045 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||||
Pennsylvania Series 2015A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 40 | |||||
Debt Instrument Maturity Year | 2,043 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||
Debt Offering Costs Expensed [Member] | Tax Exempt Bonds due 2024 to 2045 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Offering Expense | 3 | |||||
Debt Offering Costs Deferred [Member] [Member] | Tax Exempt Bonds due 2024 to 2045 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Offering Expense | $ 4 | |||||
Covanta Delaware Valley L P [Member] | Variable Rate Tax Exempt Bond due 2043 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from Issuance of Unsecured Tax Exempt Debt | $ 22 | $ 12 | ||||
Long-term Debt | $ 34 | |||||
Long-term Debt, Current Maturities | $ 6 |
CONSOLIDATED DEBT Tax-Exempt Va
CONSOLIDATED DEBT Tax-Exempt Variable Rate Demand Bonds due 2043 (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 01, 2015 | |
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 2,252 | $ 2,263 | |||
Covanta Delaware Valley L P [Member] | Variable Rate Tax Exempt Bond due 2043 [Member] [Member] [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Unsecured Tax Exempt Debt | $ 22 | $ 12 | |||
Long-term Debt | $ 34 | ||||
Pennsylvania Series 2015A [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 40 |
CONSOLIDATED DEBT Union Lease (
CONSOLIDATED DEBT Union Lease (Details) - Project Debt Type [Member] - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Debt Instrument [Line Items] | |||
Capital Lease Obligations | $ 99 | $ 0 | $ 104 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
Capital Leases, Future Minimum Payments Receivable, Next Twelve Months | $ 5 | ||
Capital Leases, Future Minimum Payments Due in Two Years | 5 | ||
Capital Leases, Future Minimum Payments Due in Three Years | 5 | ||
Capital Leases, Future Minimum Payments Due in Four Years | 6 | ||
Capital Leases, Future Minimum Payments Due in Five Years | 6 | ||
Capital Leases, Future Minimum Payments Due Thereafter | $ 72 |
CONSOLIDATED DEBT Equipment Fin
CONSOLIDATED DEBT Equipment Financing Capital Lease (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Capital Leased Assets [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.48% | |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 4.52% | |
Maximum [Member] | ||
Capital Leased Assets [Line Items] | ||
Debt Instrument, Term | 12 years | |
Minimum [Member] | ||
Capital Leased Assets [Line Items] | ||
Debt Instrument, Term | 10 years | |
3.63% - 4.25% Equipment Financing Capital Lease [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital Lease Obligations | $ 69 | $ 73 |
Capital Leases, Future Minimum Payments Receivable, Next Twelve Months | 5 | |
Capital Leases, Future Minimum Payments Due in Two Years | 5 | |
Capital Leases, Future Minimum Payments Due in Three Years | 5 | |
Capital Leases, Future Minimum Payments Due in Four Years | 5 | |
Capital Leases, Future Minimum Payments Due in Five Years | 5 | |
Capital Leases, Future Minimum Payments Due Thereafter | $ 44 |
Project Debt (Details)
Project Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Current portion of project debt | $ (22) | $ (16) | |
Project Debt | 383 | 198 | |
Project Debt Noncurrent | 361 | 182 | |
Client Community Revenue Bonds Collateralized By Property Plant And Equipment | 669 | ||
Client Community Revenue Bonds Collateralized By Restricted Funds Held In Trust | 84 | ||
Repayments Of Project Debt | 51 | 85 | $ 52 |
Restricted funds held in trust, noncurrent | $ 54 | 83 | |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.48% | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 4.52% | ||
Project Debt Type [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Maturities, Repayment Terms | $ (22) | ||
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Two | 31 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 26 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 17 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 144 | ||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 166 | ||
Debt Instrument, Face Amount | $ 406 | ||
Debt, Noncurrent | 384 | ||
Debt Instrument, Unamortized Premium | $ (23) | ||
Debt Discount, current | $ (1) | ||
Expected Accretion Of Debt Discount, noncurrent | (23) | ||
Current portion of project debt | $ (22) | ||
Project Debt Noncurrent | 361 | ||
Debt Instrument, Unamortized Premium | 4 | ||
Fiscal Year 2017 [Member] | Project Debt Type [Member] | |||
Debt Instrument [Line Items] | |||
Amount of the accretion of debt discount expected | (5) | ||
Current portion of project debt | (17) | ||
Fiscal Year 2018 [Member] | Project Debt Type [Member] | |||
Debt Instrument [Line Items] | |||
Amount of the accretion of debt discount expected | (5) | ||
Project Debt | 26 | ||
Fiscal Year 2019 [Member] | Project Debt Type [Member] | |||
Debt Instrument [Line Items] | |||
Amount of the accretion of debt discount expected | (5) | ||
Project Debt | 21 | ||
Fiscal Year 2020 [Member] | Project Debt Type [Member] | |||
Debt Instrument [Line Items] | |||
Amount of the accretion of debt discount expected | (5) | ||
Project Debt | 12 | ||
Fiscal Year 2021 [Member] [Member] | Project Debt Type [Member] | |||
Debt Instrument [Line Items] | |||
Amount of the accretion of debt discount expected | (4) | ||
Project Debt | 140 | ||
Fiscal Year After 2021 [Member] | Project Debt Type [Member] | |||
Debt Instrument [Line Items] | |||
Amount of the accretion of debt discount expected | 1 | ||
Project Debt | $ 167 | ||
Onondaga [Member] | |||
Debt Instrument [Line Items] | |||
Restricted funds held in trust, noncurrent | 15 | ||
Deferred Finance Costs, Gross | 2 | ||
Onondaga [Member] | Project Debt Type [Member] | |||
Debt Instrument [Line Items] | |||
Repayments Of Project Debt | 42 | ||
Proceeds from Issuance of Unsecured Tax Exempt Debt | 54 | ||
Debt Instrument, Unamortized Premium | $ 5 | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 4.00% | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 5.00% |
CONSOLIDATED DEBT Dublin Projec
CONSOLIDATED DEBT Dublin Project Financing (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) | |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ | $ 1,200 | ||||
Other Project Debt | $ | $ 187 | $ 54 | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.48% | ||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 4.52% | ||||
Convertible Preferred Instrument | $ 87 | € 83 | |||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 248.00% | 248.00% | |||
Dublin EfW Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Non-Recourse Debt | € 375 | ||||
Dublin EfW Facility [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 300 | ||||
Dublin EfW Facility [Member] | Senior Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Other Project Debt | $ 155 | 0 | 147 | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 641.00% | ||||
Dublin EfW Facility [Member] | Convertible Preferred [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | € 75 | € 75 | |||
Debt Instrument, Maturity Date | Sep. 30, 2032 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | 13.50% | |||
Dublin EfW Facility [Member] | Junior Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Other Project Debt | $ | $ 58 | $ 57 | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 973.00% | ||||
Dublin EfW Facility [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Other Project Debt | $ | $ 155 | ||||
Dublin EfW Facility [Member] | Senior Loans [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | € 250 | ||||
Debt Instrument, Maturity Date | Sep. 30, 2021 | ||||
Line of Credit Facility, Commitment Fee Percentage | 2.25% | ||||
Dublin EfW Facility [Member] | Junior Loans [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Other Project Debt | € 50 | ||||
Debt Instrument, Maturity Date | Mar. 31, 2022 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.23% | 5.23% | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 9.23% | ||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 9.73% | ||||
Euro Member Countries, Euro | Dublin EfW Facility [Member] | Junior Loans [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Other Project Debt | € 55 | € 50 | |||
Minimum [Member] | Dublin EfW Facility [Member] | Senior Loans [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | ||||
Maximum [Member] | Dublin EfW Facility [Member] | Convertible Preferred [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of Shares Outstanding | 24.99% | 24.99% | |||
Maximum [Member] | Dublin EfW Facility [Member] | Senior Loans [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% |
CONSOLIDATED DEBT Deferred Fina
CONSOLIDATED DEBT Deferred Financing Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Financing Costs [Abstract] | |||
Amortization of Financing Costs | $ 6 | $ 8 | $ 8 |
CONSOLIDATED DEBT Capitalized I
CONSOLIDATED DEBT Capitalized Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Capitalized Interest [Abstract] | |||
Interest Costs Capitalized | $ 26 | $ 10 | $ 2 |
FINANCIAL INSTRUMENTS Financial
FINANCIAL INSTRUMENTS Financial Instruments Recorded at Carrying Amount (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term Debt | $ 2,252 | $ 2,263 | |
Project Debt | 383 | 198 | |
Accounts Receivable, Net, Noncurrent | 1 | 2 | |
Reported Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Accounts Receivable, Fair Value Disclosure | [1] | 333 | 314 |
Long-term Debt | 2,252 | 2,263 | |
Project Debt | 383 | 198 | |
Estimate of Fair Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Accounts Receivable, Fair Value Disclosure | [1] | 333 | 314 |
Long-term Debt | 2,237 | 2,244 | |
Project Debt | $ 387 | $ 206 | |
[1] | Includes $1 million and $2 million of noncurrent receivables in other noncurrent assets in the consolidated balance sheets as of December 31, 2016 and 2015.In addition to the recurring fair value measurements, certain assets are measured at fair value on a non-recurring basis when an indication of impairment is identified and the assets fair value is determined to be less than its carrying value. See Note 14. Supplementary Information - Impairment Charges for additional information. |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Accounts Receivable, Net, Noncurrent | $ 1 | $ 2 | |
Assets: | |||
Cash and cash equivalents of continuing operations at end of period | 84 | 94 | |
Estimate of Fair Value Measurement [Member] | |||
Assets: | |||
Total assets: | 199 | 277 | |
Liabilities: | |||
Total liabilities: | 21 | 14 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Cash and cash equivalents of continuing operations at end of period | 84 | 94 | |
Restricted funds held in trust | 110 | 160 | |
Estimate of Fair Value Measurement [Member] | Bank deposits and certificates of deposit [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Bank deposits and certificates of deposit | 79 | 89 | |
Restricted funds held in trust | 12 | 9 | |
Estimate of Fair Value Measurement [Member] | Money market funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Money Market Funds, at Carrying Value | 5 | 5 | |
Restricted funds held in trust | 36 | 66 | |
Estimate of Fair Value Measurement [Member] | U.S. Treasury/Agency obligations [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Restricted funds held in trust | [1] | 14 | 18 |
Estimate of Fair Value Measurement [Member] | State and municipal obligations [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Restricted funds held in trust | 46 | 59 | |
Estimate of Fair Value Measurement [Member] | Commercial paper/Guaranteed investment contracts/Repurchase agreements [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Restricted funds held in trust | 2 | 8 | |
Estimate of Fair Value Measurement [Member] | Mutual And Bond Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Investments | [2] | 2 | 2 |
Estimate of Fair Value Measurement [Member] | Energy Hedges [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Liabilities: | |||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | [3] | 1 | 0 |
Estimate of Fair Value Measurement [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Liabilities: | |||
Derivative Liability | [3],[4] | 14 | |
Energy Hedges [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Derivative Asset | 2 | 21 | |
Energy Hedges [Member] | Estimate of Fair Value Measurement [Member] | Energy Hedges [Member] | |||
Assets: | |||
Derivative Asset | [5] | 3 | |
Energy Hedges [Member] | Estimate of Fair Value Measurement [Member] | Energy Hedges [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Derivative Asset | [5] | $ 21 | |
Interest Rate Swap [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Liabilities: | |||
Derivative Liability | [3],[4] | $ 20 | |
[1] | (1)The U.S. Treasury/agency obligations in restricted funds held in trust are primarily comprised of Federal Home Loan Mortgage Corporation securities at fair value. | ||
[2] | (2)Included in other noncurrent assets in the consolidated balance sheets. | ||
[3] | Included in accrued expenses and other current liabilities in the consolidated balance sheets. | ||
[4] | Included in other noncurrent liabilities in the consolidated balance sheets. | ||
[5] | (3)Included in prepaid expenses and other current assets in the consolidated balance sheets. |
Summary of Fair Value of Deriva
Summary of Fair Value of Derivative Instruments Not Designated as Hedging Instruments in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Derivative Asset, Current | $ 6 | |
Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Current | $ 0 | $ 6 |
Effect of Changes in Fair Value
Effect of Changes in Fair Value Related to Derivative Instruments on Consolidated Statements of Income (Detail) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Expense [Member] | Currency Swap [Member] | |||
Derivative [Line Items] | |||
Effect on income of derivative instruments not designated as hedging instruments | $ (2) | $ 6 | $ 0 |
Non Cash Convertible Debt Related Expense [Member] | |||
Derivative [Line Items] | |||
Effect on income of derivative instruments not designated as hedging instruments | (2) | 6 | 0 |
Non Cash Convertible Debt Related Expense [Member] | Note Hedge [Member] | |||
Derivative [Line Items] | |||
Effect on income of derivative instruments not designated as hedging instruments | 0 | 0 | 5 |
Non Cash Convertible Debt Related Expense [Member] | Cash Conversion Option [Member] | |||
Derivative [Line Items] | |||
Effect on income of derivative instruments not designated as hedging instruments | $ 0 | $ 0 | $ (5) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) € in Millions, MW in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)MW | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016EUR (€)MW | ||
Derivative [Line Items] | ||||||
Proceeds from Hedge, Investing Activities | $ 32 | $ 17 | ||||
Derivative Asset, Current | 6 | |||||
Payments related to cash conversion option | $ 0 | 0 | $ (83) | |||
Derivative, Nonmonetary Notional Amount | MW | 3.4 | 3.4 | ||||
Payments for (Proceeds from) Hedge, Investing Activities | $ 0 | 7 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,200 | |||||
Liabilities, Current | 418 | 371 | ||||
Energy Hedges [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Asset, Noncurrent | 1 | |||||
Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Liabilities, Current | 2 | |||||
Liabilities, Noncurrent | $ 18 | |||||
Dublin EfW Facility [Member] | Term Loan [Member] | ||||||
Derivative [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | € | € 300 | |||||
Dublin EfW Facility [Member] | Senior Loans [Member] | Term Loan [Member] | ||||||
Derivative [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | € | € 250 | |||||
Option on Securities [Member] | ||||||
Derivative [Line Items] | ||||||
Payments related to cash conversion option | 83 | |||||
Note Hedge [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Cash Received on Hedge | $ 83 | |||||
Fiscal Year 2017 [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Nonmonetary Notional Amount | MW | 2.4 | 2.4 | ||||
Fiscal Year 2018 [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Nonmonetary Notional Amount | MW | 1 | 1 | ||||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Liability | [1],[2] | $ 20 | ||||
Sanfeng Environmental [Member] | ||||||
Derivative [Line Items] | ||||||
Proceeds from Sales of Assets, Investing Activities | $ 100 | 105 | ||||
Proceeds from Hedge, Investing Activities | 5 | |||||
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Asset, Current | 0 | 6 | ||||
Estimate of Fair Value Measurement [Member] | Energy Hedges [Member] | Energy Hedges [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Asset | [3] | 3 | ||||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Energy Hedges [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Asset | $ 2 | 21 | ||||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Liability | [1],[2] | 14 | ||||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Energy Hedges [Member] | Energy Hedges [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Asset | [3] | $ 21 | ||||
[1] | Included in accrued expenses and other current liabilities in the consolidated balance sheets. | |||||
[2] | Included in other noncurrent liabilities in the consolidated balance sheets. | |||||
[3] | (3)Included in prepaid expenses and other current assets in the consolidated balance sheets. |
Components of Other Operating E
Components of Other Operating Expenses (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Other Operating Income (Expense) [Member] | |
Component of Operating Other Cost and Expense [Line Items] | |
Insurance Recoveries | $ 5 |
Operating Expense [Member] | |
Component of Operating Other Cost and Expense [Line Items] | |
Insurance Recoveries | $ 3 |
Components of Impairment Charge
Components of Impairment Charges (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Net Write-Offs [Line Items] | ||||
Impairment charges | $ 20 | $ 43 | $ 64 | |
Contract-Based Intangible Assets [Member] | ||||
Net Write-Offs [Line Items] | ||||
Impairment charges | [1] | 16 | 0 | 16 |
Other Energy Generation Facilities [Member] | ||||
Net Write-Offs [Line Items] | ||||
Impairment charges | [2] | 0 | 43 | 34 |
Other Assets [Member] | ||||
Net Write-Offs [Line Items] | ||||
Impairment charges | 4 | 0 | 0 | |
North America [Member] | ||||
Net Write-Offs [Line Items] | ||||
Impairment charges | 20 | 43 | 50 | |
Other Segments [Member] | ||||
Net Write-Offs [Line Items] | ||||
Impairment charges | [3] | 0 | 0 | 14 |
Pittsfield [Member] | Contract-Based Intangible Assets [Member] | ||||
Net Write-Offs [Line Items] | ||||
Impairment charges | 13 | |||
TARTECH (U.S.) [Member] | Contract-Based Intangible Assets [Member] | ||||
Net Write-Offs [Line Items] | ||||
Impairment charges | $ 3 | |||
Hudson Valley [Member] | Contract-Based Intangible Assets [Member] | ||||
Net Write-Offs [Line Items] | ||||
Impairment charges | 9 | |||
Transfer station [Member] | Contract-Based Intangible Assets [Member] | ||||
Net Write-Offs [Line Items] | ||||
Impairment charges | $ 7 | |||
Insurance business [Member] | ||||
Net Write-Offs [Line Items] | ||||
Impairment charges | 2 | |||
Insurance business [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Segments [Member] | ||||
Net Write-Offs [Line Items] | ||||
Impairment charges | $ 12 | |||
[1] | (1)Impairment charges related to tangible and intangible assets are related to the following:•During the year ended December 31, 2016, we recorded a non-cash impairment charge of $13 million, pre-tax, related to the previously planned closure of our Pittsfield EfW facility which is now expected to continue operating. For additional information see Note 3. New Business and Asset Management. We also recorded a non-cash impairment charge of $3 million, pre-tax, related to a joint-venture project, see Tartech Investment discussion below.•On June 30, 2014, our service agreement with the Dutchess County Resource Recovery Agency under which we operated the Hudson Valley EfW facility expired. In 2014, we recorded a $9 million non-cash impairment charge of the intangible asset that was recorded upon acquisition in 2009 based on the expected cash flows over the remaining life of the contract utilizing Level 3 inputs.•On April 3, 2014, the Montgomery County (PA) Commissioners (the “County”) unanimously voted to dissolve the Waste System Authority of Eastern Montgomery County (the “WSA”). The Abington transfer station was constructed by the County and subsequently deeded to the WSA, which was responsible for its operation. We operated the transfer station through the end of the current contract, which expired on December 31, 2014. However, due to the dissolution of the WSA, it was not able to renew our current contract to operate the Abington transfer station. During the year ended December 31, 2014, we recorded a non-cash impairment charge of $7 million of the service contract intangible with the WSA that was recorded upon acquisition in 2009 based on the expected cash flows over the remaining life of the contract utilizing Level 3 inputs. | |||
[2] | (2)Impairments related to our biomass assets are as follows:•During the year ended 2015, we identified indicators of impairment associated with our biomass facilities, primarily due to a decline in energy market pricing. As a result of these developments, we recorded a non-cash impairment charge of $43 million, pre-tax, which was calculated based on a range of potential outcomes utilizing various estimated cash flows for these facilities utilizing Level 3 inputs.•During year ended December 31, 2014, we identified indicators of impairment associated with our California Biomass facilities, primarily that we were unsuccessful in securing new long-term power purchase agreements to replace the current power purchase agreements, which were approaching the end of their terms. Based on expected cash flows utilizing Level 3 inputs, we recorded a non-cash impairment charge of $34 million to reduce the carrying value of the California Biomass assets to their estimated fair value. | |||
[3] | (3)During 2014, we sold our insurance subsidiaries and recorded a non-cash impairment of $14 million comprised of the write-down of the carrying amount in excess of the realizable fair value of $12 million, plus $2 million in disposal costs. Tartech InvestmentWe are party to a joint venture that was formed to recover and recycle metals from EfW ash monofills in North America. During the year ended December 31, 2016, due to operational difficulties and the decline in the scrap metal market, a valuation of the entity was conducted. As a result, we recorded a net impairment of our investment in this joint venture of $3 million, pre-tax, which represents our portion of the carrying value of the entity in excess of the fair value. Such amount was calculated based on the estimated liquidation value of the tangible equipment utilizing Level 3 inputs. For more information regarding fair value measurements, see Note 12. Financial Instruments.Non |
Components of Non-Cash Converti
Components of Non-Cash Convertible Debt Related Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Non Cash Convertible Debt Related Expense [Line Items] | |||
Non-cash convertible debt related expense | $ 0 | $ 0 | $ 13 |
Convertible Note Hedge [Member] | |||
Non Cash Convertible Debt Related Expense [Line Items] | |||
Fair value changes related to the derivative | 0 | (5) | |
Cash Conversion Option [Member] | |||
Non Cash Convertible Debt Related Expense [Line Items] | |||
Fair value changes related to the derivative | 0 | 5 | |
3.25% Cash Convertible Senior Notes due 2014 [Member] | |||
Non Cash Convertible Debt Related Expense [Line Items] | |||
Debt discount accretion | $ 0 | $ 13 |
Supplementary Balance Sheet Inf
Supplementary Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Prepaid Expense, Current | $ 28 | $ 37 |
Derivative Instruments and Hedges, Assets | 3 | 25 |
Spare Parts, Assets | 21 | 17 |
Renewable Energy Credits, Assets | 3 | 15 |
Other Assets, Current | 17 | 23 |
Prepaid Expense and Other Assets, Current | 72 | 117 |
Accrued Operating Expenses Payroll And Related Expenses Current | 164 | 114 |
Deferred Revenue | 16 | 13 |
Accrued Liabilities To Client Communities Current | 19 | 22 |
Interest Payable, Current | 30 | 24 |
Dividends Payable, Current | 35 | 34 |
Other Liabilities, Current | 25 | 27 |
Accrued expenses and other current liabilities | $ 289 | $ 234 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Current Federal Tax Expense (Benefit) | $ (2) | $ (91) | $ (1) | |
Current State and Local Tax Expense (Benefit) | 6 | 16 | 4 | |
Current Foreign Tax Expense (Benefit) | (2) | 2 | 3 | |
Current Income Tax Expense (Benefit) | 2 | (73) | 6 | |
Deferred Federal Income Tax Expense (Benefit) | 28 | 7 | (4) | |
Deferred State and Local Income Tax Expense (Benefit) | (9) | (11) | 16 | |
Deferred Foreign Income Tax Expense (Benefit) | 1 | (7) | (3) | |
Deferred income taxes | 20 | (11) | 9 | |
Income Tax Expense (Benefit) | 22 | (84) | 15 | |
Pre-tax income [Abstract] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 26 | 6 | 14 | |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | (12) | (34) | (10) | |
Income (loss) before income tax expense (benefit) and equity in net income from unconsolidated investments | $ 14 | $ (28) | $ 4 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||
Effective income tax rate | 150.00% | 302.00% | 388.00% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |||
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | $ 5 | $ (10) | $ 1 | |
Income Tax Reconciliation, State and Local Income Taxes | 1 | 1 | 8 | |
Income Tax Reconciliation, Change in Deferred Tax Assets Valuation Allowance | 2 | (7) | 3 | |
Income Tax Reconciliation, Other Reconciling Items | 4 | 4 | 4 | |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | 4 | 8 | 5 | |
Income Tax Reconciliation, Tax Credits, Research | 0 | (3) | (4) | |
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Amount | (4) | 0 | 0 | |
Income Tax Reconciliation Uncertain Tax Positions | 16 | (82) | 5 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount | (1) | 1 | 2 | |
Income Tax Reconciliation, Other Adjustments | (5) | 4 | (9) | |
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Consolidated net operating loss carryforwards | 288 | |||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 1 | |||
Valuation allowance | (71) | (73) | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Capital loss carryforwards | 0 | 3 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 143 | 157 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 20 | 24 | ||
Deferred Tax Assets Prepaid Expenses And Accruals | 71 | 36 | ||
Deferred Tax Assets Attributable To Pass Through Entities | 17 | 17 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits | 3 | 0 | ||
Deferred Tax Assets, Other | 4 | 4 | ||
Deferred Tax Assets, Tax Credit Carryforwards | 55 | 67 | ||
Deferred Tax Assets, Gross | 313 | 308 | ||
Deferred Tax Assets, Net of Valuation Allowance | 242 | 235 | ||
Deferred Tax Liabilities Unbilled Receivables | 3 | 4 | ||
Deferred Tax Liabilities, Property, Plant and Equipment | 780 | 725 | ||
Deferred Tax Liabilities, Intangible Assets | 36 | 18 | ||
Deferred Tax Liabilities Attributable To Pass Through Entities | 22 | 26 | ||
Deferred Tax Liabilities Accrued Original Issue Discount | 13 | 20 | ||
Deferred Tax Liabilities, Derivatives | 0 | 2 | ||
Deferred Tax Liabilities, Prepaid Expenses | 0 | 23 | ||
Deferred Tax Liabilities, Other | 5 | 11 | ||
Deferred Tax Liabilities Gross | 859 | 829 | ||
Deferred Tax Liabilities, Net | 617 | 594 | ||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 257 | 264 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 26 | 26 | ||
Disclosure Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits [Abstract] | ||||
Unrecognized Tax Benefits | 43 | 36 | 133 | $ 128 |
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 16 | 12 | 8 | |
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 4 | 0 | 0 | |
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | (3) | 0 | (3) | |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | (4) | (109) | $ 0 | |
Payments for Other Taxes | (6) | |||
Uncertain Tax Positions [Abstract] | ||||
Liability for Uncertain Tax Positions, Current | 43 | 36 | ||
Accrued interest and penalties associated with liabilities for unrecognized tax positions | 3 | $ 1 | ||
State and Local Jurisdiction [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Consolidated net operating loss carryforwards | 291 | |||
Foreign Tax Authority [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Consolidated net operating loss carryforwards | 227 | |||
Federal Jurisdiction [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Tax credit carryforwards | 47 | |||
Minimum tax credits with no expiration | 7 | |||
Valuation allowance | $ (71) | |||
Minimum [Member] | State and Local Jurisdiction [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2028 | |||
Minimum [Member] | Foreign Tax Authority [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2017 | |||
Minimum [Member] | Federal Jurisdiction [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Other Tax Carryforward, Expiration Dates | Jan. 1, 2024 | |||
Maximum [Member] | State and Local Jurisdiction [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2035 | |||
Maximum [Member] | Foreign Tax Authority [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2036 | |||
Maximum [Member] | Federal Jurisdiction [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Other Tax Carryforward, Expiration Dates | Dec. 31, 2036 | |||
Period 1 [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Consolidated net operating loss carryforwards | $ 64 | |||
Period 2 [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Consolidated net operating loss carryforwards | 29 | |||
Period 3 [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Consolidated net operating loss carryforwards | 1 | |||
Period 4 [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Consolidated net operating loss carryforwards | 1 | |||
Period 5 [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Consolidated net operating loss carryforwards | $ 193 |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Benefit Plans - Defined Contribution Plans [Abstract] | |||
Defined Contribution Plan, Cost Recognized | $ 17 | $ 16 | $ 16 |
Employee Benefit Plans - Defi89
Employee Benefit Plans - Defined Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 7.00% | |||
Defined Benefit Plan, Other Information | 10.00% | |||
Defined Benefit Plan, Ultimate Trend Rate | 5.00% | |||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | $ 0.2 | |||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||||
Defined Benefit Plan Plans With Plan Assets In Excess Of Accumulated Benefit Obligations Aggregate Projected Benefit Obligation | 1 | $ 4 | ||
Defined Benefit Plan Plans With Plan Assets In Excess Of Accumulated Benefit Obligations Aggregate Accumulated Benefit Obligation | 1 | 4 | ||
Defined Benefit Plan Plans With Plan Assets In Excess Of Accumulated Benefit Obligations Aggregate Fair Value Of Plan Assets | $ 0 | $ 0 | ||
Qualified Pension Plan [Member] | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 0.00% | 4.35% | 4.05% | |
Pension Plan, Defined Benefit [Member] | ||||
Pension and PBO - Additional Information [Abstract] | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ 6 | |||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||||
Defined Benefit Plan, Benefit Obligation | $ 1 | $ 4 | ||
Defined Benefit Plan, Actuarial Gain (Loss) | 0 | 0 | ||
Defined Benefit Plan, Benefits Paid | 3 | 0 | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||
Defined Benefit Plan, Contributions by Employer | (3) | 0 | ||
Defined Benefit Plan, Funded Status of Plan | (1) | (4) | ||
Defined Benefit Plan Accumulated Other Comprehensive Income Gross Unrecognized Cost | 0 | 0 | ||
Defined Benefit Plan, Amounts Recognized in Balance Sheet | (1) | (4) | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | 0 | 0 | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | (1) | (1) | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | (1) | $ (1) | ||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 1 | |||
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.55% | 3.75% | ||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||||
Defined Benefit Plan, Benefit Obligation | $ 3 | $ 4 | $ 5 | |
Defined Benefit Plan, Actuarial Gain (Loss) | (1) | (1) | ||
Defined Benefit Plan, Benefits Paid | 0 | 0 | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | $ 0 | |
Defined Benefit Plan, Contributions by Employer | 0 | 0 | ||
Defined Benefit Plan, Funded Status of Plan | (3) | (4) | ||
Defined Benefit Plan Accumulated Other Comprehensive Income Gross Unrecognized Cost | 0 | 0 | ||
Defined Benefit Plan, Amounts Recognized in Balance Sheet | (3) | (4) | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | (4) | (4) | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | 0 | 0 | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | $ (4) | $ (4) | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.75% | 3.50% | ||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | $ 2 | |||
Qualified Pension Plan [Member] | ||||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.35% | 4.05% | ||
Medicare Part D [Member] | ||||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||||
Future Benefits Payable Attributable to Medicare Part D Subsidy | $ 0 | |||
Annuity Payment [Member] | Pension Plan, Defined Benefit [Member] | ||||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||||
Defined Benefit Plan, Benefits Paid | $ 35 |
Stock-Based Award Plans (Detail
Stock-Based Award Plans (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2014shares | |
Stocd-Based Award Plans [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 6 |
Stock Based Compensation (Addit
Stock Based Compensation (Additional Details) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 16 | $ 18 | $ 17 |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Average Forfeiture Rate | 12.00% | ||
Share-based Compensation | $ 10 | 11 | 11 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 7 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Average Forfeiture Rate | 15.00% | ||
Share-based Compensation | $ 6 | $ 6 | $ 6 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 8 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month 17 days |
Share Based Compensation - Rest
Share Based Compensation - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Of Awards Vested | $ 9 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 761,000 | 573,000 | 721,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,220,000 | 1,060,000 | 1,240,000 | 1,166,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (532,000) | (661,000) | (608,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (69,000) | (92,000) | (39,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 17.20 | $ 19.79 | $ 17.67 | $ 17.85 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 15.14 | 21.88 | 17.20 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 19.36 | 17.69 | 17.27 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 17.51 | $ 19.36 | $ 17.80 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 761,426 | |||
Employee Restricted Equity Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Forfeitures | 12.00% | |||
Director [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 9,000 | |||
Employees Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 752,426 |
Share Based Compensation - Re93
Share Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | Sep. 22, 2016 | May 31, 2016 | Mar. 31, 2016 | Jan. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 356,622 | 888,144 | 322,000 | 247,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,803,000 | 1,189,000 | 894,000 | 691,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (51,000) | (21,000) | (44,000) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (223,000) | (6,000) | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 16.25 | $ 17.60 | $ 15.93 | $ 16.66 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 14.65 | 21.95 | 14.60 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 20.24 | 17.94 | 16.51 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 16.29 | $ 21.99 | $ 0 | |||||
Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 390,728 | |||||||
Director [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 5,550 | 54,591 | 471,381 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Options Expiration Term | 10 years | |||
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | $ 1 | $ 10 | ||
Share - Based Compensation Arrangement By Share - Based Payment Award Options Vested Aggregate Intrinsic Value | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0 | $ 0 | $ 1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 21.38 | |||
Disclosure Options For Shares In Price Ranges [Abstract] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 1,080 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 1,080 | |||
Stock Options Fiscal 2004 Plan [Member] | Stock Option [Member] | ||||
Schedule of Options Rollfoward [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,080 | 1,100 | 1,113 | 1,686 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | 25 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | (13) | (532) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (20) | 0 | (66) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,080 | 1,100 | 1,100 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,003 | 5,652 | 6,548 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 21.38 | $ 21.37 | $ 21.25 | $ 20.42 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 0 | 0 | 20.58 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 0 | 11.40 | 18.53 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | 0 | 0 | 20.52 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | 0 | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 21.38 | $ 21.37 | $ 21.26 | |
Minimum [Member] | Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Maximum [Member] | Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | $ 0 | |||
Range 1 [Member] | ||||
Disclosure Options For Shares In Price Ranges [Abstract] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 20.52 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | 20.58 | |||
Range 1 [Member] | Stock Option [Member] | ||||
Schedule of Options Rollfoward [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 20.52 | |||
Disclosure Options For Shares In Price Ranges [Abstract] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 850 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 5 months 5 days | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 850 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 20.52 | |||
Range 2 [Member] | ||||
Disclosure Options For Shares In Price Ranges [Abstract] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 23.30 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | 24.76 | |||
Range 2 [Member] | Stock Option [Member] | ||||
Schedule of Options Rollfoward [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 24.57 | |||
Disclosure Options For Shares In Price Ranges [Abstract] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 230 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 1 year 5 months 12 days | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 230 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 24.57 |
Commitments and Contingencies95
Commitments and Contingencies (Details) € in Millions, $ in Millions | 12 Months Ended | 48 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | |||||
Loss Contingency Accrual | $ 11 | $ 1 | $ 11 | ||
Other Commitments | 375 | 375 | |||
Letters of credit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Other Commitments | 61 | 61 | |||
Surety Bonds [Member] | |||||
Loss Contingencies [Line Items] | |||||
Other Commitments | 158 | 158 | |||
Commitments Expiring Less Than One Year [Member] | |||||
Loss Contingencies [Line Items] | |||||
Other Commitments | 0 | 0 | |||
Commitments Expiring More Than One Year [Member] | |||||
Loss Contingencies [Line Items] | |||||
Other Commitments | 375 | 375 | |||
Dublin EfW Facility [Member] | |||||
Loss Contingencies [Line Items] | |||||
Working Capital Loan | € | € 25 | ||||
Performance Shortfall Funding | € | 75 | ||||
Capital Invested In Project | € | € 125 | ||||
NYC Waste Contract [Member] | |||||
Loss Contingencies [Line Items] | |||||
Estimated Capital Expenditures For Project | 114 | ||||
Capital Invested In Project | 3 | 31 | $ 59 | 115 | |
Capital Invested In Project Remaining | $ 33 | ||||
Revolving Credit Facility [Member] | Letters of credit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Other Commitments | $ 156 | $ 156 |
Quarterly Data (Unaudited) (Det
Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 457 | $ 421 | $ 418 | $ 403 | $ 432 | $ 422 | $ 408 | $ 383 | $ 1,699 | $ 1,645 | $ 1,682 |
Less: Net income attributable to noncontrolling interests in subsidiaries | 0 | 1 | 1 | ||||||||
Operating Income (Loss) | 58 | 60 | 5 | (14) | 43 | 74 | (15) | 7 | 109 | 109 | 154 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 8 | 54 | (29) | (37) | 78 | 34 | (6) | (37) | (4) | 69 | (1) |
Net Income (Loss) Attributable to Parent | $ 8 | $ 54 | $ (29) | $ (37) | $ 77 | $ 34 | $ (6) | $ (37) | $ (4) | $ 68 | $ (2) |
Earnings Per Share, Basic | $ 0.06 | $ 0.42 | $ (0.23) | $ (0.29) | $ 0.59 | $ 0.26 | $ (0.05) | $ (0.28) | $ (0.03) | $ 0.52 | $ (0.01) |
Earnings Per Share, Diluted | 0.06 | 0.42 | (0.23) | (0.29) | 0.58 | 0.25 | (0.05) | (0.28) | (0.03) | 0.51 | (0.01) |
Common Stock, Dividends, Per Share, Declared | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 1 | $ 1 | $ 0.86 |
Net Interest Expense On Project Debt | $ (1) | $ 3 | $ 5 | $ 2 | $ 9 | $ 10 |
Schedule II Valuation and Qua97
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation Allowances and Reserves, Balance | $ 9 | $ 7 | $ 6 | $ 4 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 3 | 1 | 4 | |
Valuation Allowances and Reserves, Adjustments | 0 | 0 | 0 | |
Valuation Allowances and Reserves, Deductions | $ 1 | $ 0 | $ 2 |