Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 19, 2019 | |
Document Documentand Entity Information [Abstract] | ||
Entity Current Reporting Status | Yes | |
Title of 12(b) Security | Class A common stock | |
Entity Incorporation, State or Country Code | DE | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CVA | |
Entity Registrant Name | COVANTA HOLDING CORPORATION | |
Entity Central Index Key | 0000225648 | |
Current Fiscal Year End Date | --12-31 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 131,435,569 | |
Entity File Number | 1-06732 | |
Entity Tax Identification Number | 95-6021257 | |
Entity Address, Address Line One | 445 South Street | |
Entity Address, City or Town | Morristown | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07960 | |
City Area Code | 862 | |
Local Phone Number | 345-5000 | |
Entity Shell Company | false | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING REVENUES: | ||||
Total operating revenue | $ 467 | $ 454 | $ 920 | $ 912 |
OPERATING EXPENSES: | ||||
Cost of Goods and Services Sold | 354 | 334 | 713 | 679 |
Other operating expense, net | 16 | 19 | 33 | 27 |
General and administrative expense | 31 | 27 | 61 | 58 |
Depreciation, Amortization and Accretion, Net | 55 | 55 | 110 | 109 |
Asset Impairment Charges | 1 | 37 | 1 | 37 |
Total operating expense | 457 | 472 | 918 | 910 |
Operating income (loss) | 10 | (18) | 2 | 2 |
Other income (expense): | ||||
Interest expense | (36) | (36) | (72) | (74) |
Net gain on sale of business and investments | (2) | 0 | 48 | 210 |
Other Nonoperating Income (Expense) | 1 | (1) | 2 | (1) |
Total (expense) income | (37) | (37) | (22) | 135 |
(Loss) income before income tax benefit and equity in net income from unconsolidated investments | (27) | (55) | (20) | 137 |
Income tax benefit | 3 | 22 | 1 | 31 |
Equity in net income from unconsolidated investments | 3 | 2 | 3 | 2 |
Net (loss) income | $ (21) | $ (31) | $ (16) | $ 170 |
Weighted Average Common Shares Outstanding: | ||||
Basic | 131 | 130 | 131 | 130 |
Diluted | 131 | 130 | 131 | 132 |
Earnings Per Share Attributable to Covanta Holding Corporation stockholders': | ||||
Basic | $ (0.16) | $ (0.24) | $ (0.12) | $ 1.31 |
Diluted | (0.16) | (0.24) | (0.12) | 1.29 |
Cash Dividend Declared Per Share | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 |
Waste And Service [Member] | ||||
OPERATING REVENUES: | ||||
Total operating revenue | $ 359 | $ 333 | $ 686 | $ 645 |
Electricity [Member] | ||||
OPERATING REVENUES: | ||||
Total operating revenue | 72 | 76 | 166 | 176 |
Recycled Metals [Member] | ||||
OPERATING REVENUES: | ||||
Total operating revenue | 21 | 25 | 42 | 49 |
Revenue Type [Domain] | ||||
OPERATING REVENUES: | ||||
Total operating revenue | $ 15 | $ 20 | $ 26 | $ 42 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) Attributable to Parent | $ (21) | $ (31) | $ (16) | $ 170 |
Foreign currency translation, net of tax expense of $0, $0, $0 and $1, respectively | 3 | (10) | (2) | 2 |
Net unrealized gain (loss) on derivative instruments, net of tax expense (benefit) of $2, ($2), $5 and ($1), respectively | 6 | (5) | 6 | 27 |
Other comprehensive income (loss) | 9 | (15) | 4 | 29 |
Comprehensive (loss) income | $ (12) | $ (46) | $ (12) | $ 199 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - Parenthetical - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 0 | $ 0 | $ 0 | $ 1 |
Unrealized gain (loss) on derivative instruments, tax | $ 2 | $ (2) | $ 5 | $ (1) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 102 | $ 58 |
Restricted funds held in trust | 22 | 39 |
Receivables (less allowances of $8 and $8, respectively) | 318 | 338 |
Prepaid expenses and other current assets | 84 | 64 |
Total Current Assets | 526 | 499 |
Property, plant and equipment, net | 2,492 | 2,514 |
Restricted funds held in trust | 8 | 8 |
Intangible assets, net | 269 | 279 |
Goodwill | 321 | 321 |
Other assets | 286 | 222 |
Total Assets | 3,902 | 3,843 |
Current Liabilities: | ||
Current portion of long-term debt | 16 | 15 |
Current portion of project debt | 10 | 19 |
Accounts payable | 61 | 76 |
Accrued expenses and other current liabilities | 318 | 333 |
Total Current Liabilities | 405 | 443 |
Long-term debt | 2,446 | 2,327 |
Project debt | 128 | 133 |
Deferred income taxes | 378 | 378 |
Other liabilities | 129 | 75 |
Total Liabilities | 3,486 | 3,356 |
Covanta Holding Corporation stockholders' equity: | ||
Preferred stock ($0.10 par value; authorized 10 shares; none issued and outstanding) | 0 | 0 |
Common stock ($0.10 par value; authorized 250 shares; issued 136 shares, outstanding 131 shares) | 14 | 14 |
Additional paid-in capital | 848 | 841 |
Accumulated other comprehensive loss | (27) | (33) |
Accumulated deficit | (419) | (334) |
Treasury stock, at par | 0 | (1) |
Total equity | 416 | 487 |
Total Liabilities and Equity | $ 3,902 | $ 3,843 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 8 | $ 8 |
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 | 131 | 131 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES: | ||||
Net (loss) income | $ (16) | $ 170 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation, Amortization and Accretion, Net | $ 55 | $ 55 | 110 | 109 |
Amortization of deferred debt financing costs | 2 | 3 | ||
Net gain on sale of business and investments | (2) | 0 | 48 | 210 |
Asset Impairment Charges | 1 | 37 | 1 | 37 |
Stock-based compensation expense | 7 | 5 | 15 | 14 |
Equity in net income from unconsolidated investments | 3 | 2 | 3 | 2 |
Increase (Decrease) in Deferred Income Taxes | 4 | 28 | ||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, 50 Percent or Less Owned Persons | 5 | 1 | ||
Other, net | 5 | (8) | ||
Change in working capital, net of effects of acquisitions and dispositions | 18 | (21) | ||
Changes in noncurrent assets and liabilities, net | 2 | (2) | ||
Net cash provided by operating activities | 87 | 63 | ||
INVESTING ACTIVITIES: | ||||
Purchase of property, plant and equipment | (93) | (130) | ||
Acquisition of businesses, net of cash acquired | 2 | (4) | ||
Proceeds from the sale of assets, net of restricted cash | 26 | 112 | ||
Property insurance proceeds | 0 | 7 | ||
Investment in equity affiliate | 8 | 0 | ||
Payment of indemnification claim from sale of asset | 0 | (7) | ||
Other, net | 1 | 1 | ||
Net cash used in investing activities | (74) | (23) | ||
FINANCING ACTIVITIES: | ||||
Proceeds from borrowings on long-term debt | 14 | 30 | ||
Proceeds from borrowings on revolving credit facility | 359 | 317 | ||
Payments on long-term debt | (8) | (6) | ||
Payments on revolving credit facility | (248) | (387) | ||
Payments on project debt | (13) | (13) | ||
Cash dividends paid to stockholders | (68) | (66) | ||
Financing of insurance premiums, net | (14) | (13) | ||
Other, net | (8) | 2 | ||
Net cash provided by (used in) financing activities | 14 | (136) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 2 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 27 | (94) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 132 | 100 | 132 | 100 |
Cash, cash equivalents and restricted cash at end of period | 102 | 39 | 102 | 39 |
Restricted funds held in trust | 22 | 37 | 22 | 37 |
Restricted funds held in trust | $ 8 | $ 24 | $ 8 | $ 24 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY Statement - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings, Unappropriated [Member] | Treasury Stock [Member] |
Shares, Outstanding | 136 | |||||
Common Stock, Value, Issued | $ 14 | |||||
Additional Paid in Capital | $ 822 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (55) | $ (55) | ||||
Retained Earnings (Accumulated Deficit) | $ (353) | |||||
Treasury Stock, Shares | 5 | |||||
Treasury Stock, Value | $ (1) | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 427 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 9 | 9 | ||||
Dividends, Common Stock | (33) | (33) | ||||
Stock Repurchased During Period, Value | (4) | (4) | ||||
Stockholders' Equity, Other | 0 | (1) | (1) | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 44 | |||||
Net Income (Loss) Attributable to Parent | 201 | |||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 245 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 29 | |||||
Net Income (Loss) Attributable to Parent | 170 | |||||
Shares, Outstanding | 136 | |||||
Common Stock, Value, Issued | $ 14 | |||||
Additional Paid in Capital | 828 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (11) | |||||
Retained Earnings (Accumulated Deficit) | (185) | |||||
Treasury Stock, Shares | 5 | |||||
Treasury Stock, Value | $ (1) | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 645 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 5 | 5 | ||||
Dividends, Common Stock | (33) | (33) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (15) | (15) | ||||
Net Income (Loss) Attributable to Parent | (31) | (31) | ||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (46) | |||||
Shares, Outstanding | 136 | |||||
Common Stock, Value, Issued | $ 14 | |||||
Additional Paid in Capital | 833 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (26) | |||||
Retained Earnings (Accumulated Deficit) | (249) | |||||
Treasury Stock, Shares | 5 | |||||
Treasury Stock, Value | $ (1) | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 571 | |||||
Shares, Outstanding | 136 | |||||
Common Stock, Value, Issued | $ 14 | |||||
Additional Paid in Capital | 841 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (33) | (33) | ||||
Retained Earnings (Accumulated Deficit) | (334) | (334) | ||||
Treasury Stock, Shares | 5 | |||||
Treasury Stock, Value | (1) | $ (1) | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | 487 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 8 | 8 | ||||
Dividends, Common Stock | (34) | 34 | ||||
Stock Repurchased During Period, Value | (8) | (8) | ||||
Stockholders' Equity, Other | (1) | $ (1) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (5) | |||||
Net Income (Loss) Attributable to Parent | 5 | |||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 4 | |||||
Net Income (Loss) Attributable to Parent | (16) | |||||
Shares, Outstanding | 136 | |||||
Common Stock, Value, Issued | $ 14 | |||||
Additional Paid in Capital | 841 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (36) | |||||
Retained Earnings (Accumulated Deficit) | (365) | |||||
Treasury Stock, Shares | 5 | |||||
Treasury Stock, Value | $ 0 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 454 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 7 | 7 | ||||
Dividends, Common Stock | (34) | (34) | ||||
Stockholders' Equity, Other | 1 | (1) | $ 0 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 9 | 9 | ||||
Net Income (Loss) Attributable to Parent | (21) | (21) | ||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (12) | |||||
Shares, Outstanding | 136 | |||||
Common Stock, Value, Issued | $ 14 | |||||
Additional Paid in Capital | $ 848 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (27) | $ (27) | ||||
Retained Earnings (Accumulated Deficit) | (419) | $ (419) | ||||
Treasury Stock, Shares | 5 | |||||
Treasury Stock, Value | 0 | $ 0 | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 416 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | The terms “we,” “our,” “ours,” “us”, "Covanta" and “Company” refer to Covanta Holding Corporation and its subsidiaries; the term “Covanta Energy” refers to our subsidiary Covanta Energy, LLC and its subsidiaries. Organization Covanta is one of the world’s largest owners and operators of infrastructure for the conversion of waste to energy (known as “energy-from-waste” or “EfW”), and also owns and operates related waste transport, processing and disposal assets. EfW serves as both a sustainable waste management solution that is environmentally superior to landfilling and as a source of clean energy that reduces overall greenhouse gas emissions and is considered renewable under the laws of many states and under federal law. Our facilities are critical infrastructure assets that allow our customers, which are principally municipal entities, to provide an essential public service. Our EfW facilities earn revenue from both the disposal of waste and the generation of electricity and/or steam as well as from the sale of metal recovered during the EfW process. We process approximately 22 million tons of solid waste annually. We operate and/or have ownership positions in 41 energy-from-waste facilities, which are primarily located in North America and Ireland. In total, these assets produce approximately 10 million megawatt hours (“MWh”) of baseload electricity annually. We also operate a waste management infrastructure that is complementary to our core EfW business. In addition, we offer a variety of sustainable waste management solutions in response to customer demand, including industrial, consumer products and healthcare waste handling, treatment and assured destruction, industrial wastewater treatment and disposal, product depackaging and recycling, on-site cleaning services, and transportation services. Together with our processing of non-hazardous "profiled waste" for purposes of assured destruction or sustainability goals in our EfW facilities, we offer these services under our Covanta Environmental Solutions brand. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes thereto required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included in our condensed consolidated financial statements. All intercompany accounts and transactions have been eliminated. Operating results for the interim period are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The condensed consolidated balance sheet at December 31, 2018 , was derived from audited annual consolidated financial statements, but does not contain all of the notes thereto from the annual consolidated financial statements. This Form 10-Q should be read in conjunction with the Audited Consolidated Financial Statements and accompanying Notes in our Annual Report on Form 10-K for the year ended December 31, 2018 (“Form 10-K”). Accounting Pronouncements Recently Adopted In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02 Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update allow a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for adjustments to the tax effect of items in AOCI, that were originally recognized in other comprehensive income, related to the new statutory rate prescribed in the Tax Cuts and Jobs Act enacted on December 22, 2017, which reduced the US federal corporate tax rate from 35% to 21%. The amendments in this update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the US federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. Effective January 1, 2019, we adopted this standard and recorded a reclassification of AOCI to accumulated deficit totaling $2 million . In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842) which amended guidance for lease arrangements to increase transparency and comparability by providing additional information to users of financial statements regarding an entity's leasing activities. Subsequent to the issuance of Topic 842, the FASB clarified the guidance through several ASUs; hereinafter the collection of lease guidance is referred to as Accounting Standards Codification (“ASC") 842. 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 standard requires a modified retrospective basis adoption. On January 1, 2019, we adopted ASC 842 using the modified retrospective method and recognized a right of use ("ROU") asset and liability in our consolidated condensed balance sheet in the amount of $57 million and $62 million , respectively, related to our operating leases where we are the lessee. There was no effect on our operating leases as lessor. Results for the six months ended June 30, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the historic accounting guidance under ASC Topic 840, Leases. As part of the adoption, we elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to: 1. Continue to apply the ASC 840 guidance, including the disclosure requirements, in the comparative periods presented in the year of adoption, the hindsight practical expedient; 2. Continue applying our current policy for accounting for land easements that existed as of, or expired before, January 1, 2019; 3. Not separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. We elected to apply this practical expedient to all underlying asset classes; 4. Not apply the recognition requirements in ASC 842 to short-term leases; and 5. Not record a right of use asset or right of use liability for leases with an asset or liability balance that would be considered immaterial. Refer to Note 12. Leases for additional disclosures required by ASC 842. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Notes To Financial Statements [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | The following table summarizes recent ASU's issued by the FASB that could have a material impact on our consolidated financial statements. Standard Description Effective Date Effect on the financial statements or other significant matters ASU 2016-13 The standard amends guidance on the impairment of financial instruments. The ASU estimates credit losses based on expected losses and provides for a simplified accounting model for purchased financial assets with credit deterioration. The standard requires a modified retrospective basis adoption through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. First quarter of 2020, early adoption is permitted. We are currently evaluating the impact this guidance will have on our consolidated financial statements. |
NEW BUSINESS AND ASSET MANAGMEN
NEW BUSINESS AND ASSET MANAGMENT NEW BUSINESS AND ASSET MANAGMENT | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
NEW BUSINESS AND ASSET MANAGEMENT | Green Investment Group Limited Joint Venture Rookery EfW In March 2019, we reached financial close on the Rookery South Energy Recovery Facility (“Rookery”), a 1,600 metric ton-per-day, 60 megawatt EfW facility under construction in Bedfordshire, England. Rookery is our second investment in the UK with our strategic partner, Green Investment Group Limited (“GIG”). Through a 50/50 jointly-owned and governed entity (“Covanta Green”), we and GIG will own an 80% interest in the project. We co-developed the project with Veolia ES (UK) Limited (“Veolia”), who will own the remaining 20% . We will provide technical oversight during construction and will provide operations and maintenance (“O&M”) services for the facility, and Veolia will be responsible for supplying at least 70% of the waste processing capacity. The facility is expected to commence commercial operations in 2022. In connection with the transaction, we received $44 million ( £34 million ) of total consideration for the value of our development costs incurred to date and related fees, and for GIG’s right to invest 40% in the project ( 50% investment in Covanta Green). For the six months ended June 30, 2019 , as a result of this consideration and a step-up in the fair value of our retained equity investment, we recorded a gain of $57 million in Net gain on sale of business and investments in our condensed consolidated statement of operations. As of June 30, 2019 , $22 million of the consideration received remained in Covanta Green, and as such this amount is included in Prepaid expenses and other current assets and our $15 million equity method investment is included in Other assets in our condensed consolidated balance sheet. The fair value of our retained equity investment in Covanta Green was determined by the fair value of the consideration received from GIG for the right to invest 40% in the project. Dublin EfW In February 2018, we completed our first investment with GIG, Covanta Europe Assets Limited, which is structured as a 50/50 jointly-owned and governed entity between Covanta and GIG. As an initial step, we contributed 100% of our Dublin EfW project ("Dublin EfW") to the entity, and GIG acquired a 50% ownership in the entity. We retained a 50% equity interest in the entity and retained our role as O&M service provider for the facility. We received gross proceeds of $167 million ( $98 million , net of existing restricted cash), which we used to repay borrowings under our Revolving Credit Facility. The sale resulted in our loss of a controlling interest in Dublin EfW, which required the entity to be deconsolidated from our financial statements as of the sale date. For the six months ended June 30, 2018 , we recorded a gain on the loss of a controlling interest of the business of $204 million which is included in Net gain on sale of business and investments on our condensed consolidated statement of operations. The gain resulted from the excess of proceeds received plus the fair value of our non-controlling interest in Dublin EfW over our carrying value. Our 50% equity interest is accounted for under the equity method of accounting. As of June 30, 2019 and December 31, 2018, our equity investment of $145 million and $149 million , respectively, is included in "Other assets" on our condensed consolidated balance sheet. The fair value of our investment was determined by the fair value of the consideration received for the 50% acquired by GIG. There were no basis differences between the fair value of the acquired investment and the carrying amounts of the underlying net assets as they were fair valued contemporaneously as of the sale date. Divestiture of Springfield and Pittsfield EfW facilities During the second quarter of 2019, as part of our ongoing asset rationalization and portfolio optimization efforts, we divested our Pittsfield and Springfield EfW facilities . During the first quarter, we determined that the assets and liabilities associated with these facilities met the criteria for classification as assets held for sale, but did not meet the criteria for classification as discontinued operations as this sale did not represent a strategic shift in our business. During the three and six months ended June 30, 2019 , we recognized a loss of $3 million and $12 million , respectively, which is included in Net (loss) gain on sale of business and investments in our condensed consolidated statement of operations. |
EARNINGS PER SHARE ("EPS") AND
EARNINGS PER SHARE ("EPS") AND EQUITY (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE AND EQUITY | Earnings Per Share We calculate basic Earnings Per Share ("EPS") using net earnings for the period and the weighted average number of outstanding shares of our common stock, par value $0.10 per share, during the period. Diluted earnings per share computations, as calculated under the treasury stock method, include the weighted average number of shares of additional outstanding common stock issuable for stock options, restricted stock awards and restricted stock units whether or not currently exercisable. Diluted earnings per share does not include securities if their effect was anti-dilutive. Basic and diluted weighted average shares outstanding were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Basic weighted average common shares outstanding 131 130 131 130 Dilutive effect of stock options, restricted stock and restricted stock units — — — 2 Diluted weighted average common shares outstanding 131 130 131 132 Anti-dilutive stock options, restricted stock and restricted stock units excluded from the calculation of EPS 2 2 2 — Equity Accumulated Other Comprehensive (Loss) Income ("AOCI") The changes in accumulated other comprehensive loss are as follows (in millions): Foreign Currency Translation Pension and Other Postretirement Plan Unrecognized Net Gain Net Unrealized (Loss) Gain On Derivatives Total Balance at December 31, 2017 $ (24 ) $ 2 $ (33 ) $ (55 ) Other comprehensive income before reclassifications — — — — Amounts reclassified from accumulated other comprehensive (loss) income 2 — 27 29 Net current period comprehensive income 2 — 27 29 Balance at June 30, 2018 $ (22 ) $ 2 $ (6 ) $ (26 ) Balance at December 31, 2018 $ (23 ) $ 2 $ (12 ) $ (33 ) Cumulative effect change in accounting for ASU 2018-02 (see Note1) — — 2 2 Balance at January 1, 2019 (23 ) 2 (10 ) (31 ) Other comprehensive (loss) income (2 ) — 6 4 Net current period comprehensive (loss) income (2 ) — 6 4 Balance at June 30, 2019 $ (25 ) $ 2 $ (4 ) $ (27 ) Amount Reclassified from Accumulated Other Comprehensive (Loss) Income Accumulated Other Comprehensive (Loss) Income Component Six Months Ended June 30, 2018 Affected Line Item in the Condensed Consolidated Statement of Operations Foreign currency translation $ 2 Net gain on sale of business and investments (1) Interest rate swap 27 Net gain on sale of business and investments (1) 29 Total before tax — Tax benefit Total reclassifications $ 29 Net of tax (1) Reclassification from AOCI to Net gain on sale of business and investments, related to the loss of a controlling interest in Dublin EfW, which required the entity to be deconsolidated from our financial statements in February 2018. For additional information see Item 1. Financial Statements, Note 3. New Business and Asset Management- Green Investment Group Limited Joint Venture. |
REVENUES (Notes)
REVENUES (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Disaggregation of revenue A disaggregation of revenue from contracts with customers is presented in our condensed consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 . We have one reportable segment which comprises our entire operating business. Performance Obligations and Transaction Price Allocated to Remaining Performance Obligations ASC 606 requires disclosure of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2019 . The guidance provides certain conditions (identified as "practical expedients") that limit this disclosure requirement. We have contracts that meet the following practical expedients provided by ASC 606: 1. The performance obligation is part of a contract that has an original expected duration of one year or less; 2. Revenue is recognized from the satisfaction of the performance obligations in the amount billable to our customer that corresponds directly with the value to the customer of our performance completed to date (i.e. “right-to-invoice” practical expedient); and/or 3. The variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct service or a series of distinct services that are substantially the same and that have the same pattern of transfer to our customer (i.e. “series practical expedient”). The following table shows our remaining performance obligations which primarily consists of the fixed consideration contained in our contracts as of June 30, 2019 (dollars in millions): Total Total remaining performance obligation $ 6,342 Percentage expected to be recognized: Remainder of 2019 5 % 2020 10 % Contract Balances The following table reflects the balance in our contract assets, which we classify as “Accounts receivable unbilled” and present net in Accounts receivable, and our contract liabilities, which we classify as deferred revenue and present in “Accrued expenses and other current liabilities” in our condensed consolidated balance sheet (in millions): June 30, December 31, Unbilled receivables $ 17 $ 16 Deferred revenue $ 19 $ 15 For the six months ended June 30, 2019 , revenue recognized that was included in deferred revenue in our condensed consolidated balance sheet at the beginning of the period totaled $8 million . |
STOCK-BASED AWARD PLANS (Notes)
STOCK-BASED AWARD PLANS (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED AWARD PLANS | During the six months ended June 30, 2019 , we awarded certain employees grants of 1,085,497 restricted stock units ("RSUs"). The RSUs will be expensed over the requisite service period. The terms of the RSUs include vesting provisions based solely on continued service. If the service criteria are satisfied, the RSUs will generally vest during March of 2020 , 2021 , and 2022 . During the six months ended June 30, 2019 , we awarded certain employees 395,320 performance based RSUs of which 50% will vest based upon our cumulative Free Cash Flow per share target over a three year performance period and the other 50% will vest based on a total shareholder return ("TSR") against metrics consistent with market practices and our peers. During the six months ended June 30, 2019 , we awarded 81,635 RSUs and 6,236 restricted stock awards ("RSAs") for annual director compensation. In addition, during the six months ended June 30, 2019 , we awarded 11,935 RSUs for quarterly director fees to certain of our directors who elected to receive RSUs in lieu of cash payments. We determined the service vesting condition of these RSU's and RSA's to be non-substantive and, in accordance with accounting principles for stock compensation, recorded the entire fair value of the awards as compensation expense on the grant date. During the six months ended June 30, 2019 , we withheld 452,025 shares of our common stock in connection with tax withholdings for vested stock awards. Compensation expense related to our stock-based awards was as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Share based compensation expense $ 7 $ 5 $ 15 $ 14 Unrecognized stock-based compensation expense and weighted-average years to be recognized are as follows (in millions, except for weighted average years): As of June 30, 2019 Unrecognized stock- based compensation Weighted-average years to be recognized Restricted stock awards $ 1 0.7 Restricted stock units $ 25 1.8 |
SUPPLEMENTARY INFORMATION (Note
SUPPLEMENTARY INFORMATION (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTARY INFORMATION | Pass through costs Pass through costs are costs for which we receive a direct contractually committed reimbursement from the public sector client that sponsors 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 public sector client reimbursements as a reduction to "Plant operating expense" in our condensed consolidated statement of operations. Pass through costs were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Pass through costs $ 12 $ 12 $ 25 $ 26 Other operating expenses, net Insurance Recoveries Fairfax County Energy-from-Waste Facility In February 2017, our Fairfax County energy-from-waste facility experienced a fire in the front-end receiving portion of the facility. During the first quarter of 2017, we completed our evaluation of the impact of this event and recorded an immaterial asset impairment, which we have since recovered from insurance proceeds. The facility resumed operations in December 2017. We expect to receive the remaining insurance recoveries for both property loss and business interruption during 2019. The cost of repair or replacement of assets and business interruption losses are insured under the terms of applicable insurance policies, subject to deductibles. We recorded insurance gains, as a reduction to "Other operating expense, net," in our condensed consolidated statement of operations as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Insurance gains for property and clean-up costs, net of impairment charges $ — $ — $ — $ 7 Insurance gains for business interruption costs, net of costs incurred $ — $ 1 $ — $ 8 Impairment Charges During the three months ended June 30, 2018, we identified an indicator of impairment associated with certain of our EfW facilities where the expectation was, more likely than not, that the assets would not be operated through their previously estimated economic useful lives. We performed recoverability tests to determine if these facilities were impaired at June 30, 2018. As a result, based on expected cash flows utilizing Level 3 inputs, we recorded a non-cash impairment charge of $37 million to reduce the carrying value of the facilities to their estimated fair value. |
INCOME TAXES (Notes)
INCOME TAXES (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | We generally record our interim tax provision based upon a projection of the Company’s annual effective tax rate ("AETR"). This AETR is applied to the year-to-date consolidated pre-tax income to determine the interim provision for income taxes before discrete items. We update the AETR on a quarterly basis as the pre-tax income projections are revised and tax laws are enacted. The effective tax rate ("ETR") each period is impacted by a number of factors, including the relative mix of domestic and international earnings, adjustments to the valuation allowances and discrete items. The currently forecasted ETR may vary from the actual year-end due to the changes in these factors. The Company’s global ETR for the six months ended June 30, 2019 and 2018 was 7% and (23)% , respectively, including discrete tax items. The increase in the ETR is primarily due to the change in the mix of earnings and the impact of non-recurring transactions. |
FINANCIAL INSTRUMENTS (Notes)
FINANCIAL INSTRUMENTS (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | Fair Value Measurements Authoritative guidance associated with fair value measurements provides a framework for measuring fair value and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs), then significant other observable inputs (Level 2 inputs) and the lowest priority to significant unobservable inputs (Level 3 inputs). The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • For marketable securities, the carrying value of these amounts is a reasonable estimate of their fair value. • Fair values for long-term debt and project debt are determined using quoted market prices (Level 1). • The fair value of our floating to fixed rate interest rate swaps is determined using discounted cash flow valuation methodologies that apply the appropriate forward floating rate curve observable in the market to the contractual terms of our swap agreements. The fair value of the interest rate swaps is adjusted to reflect counterparty risk of non-performance, and is based on the counterparty’s credit spread in the credit derivatives market. • The fair values of our energy hedges were determined using the spread between our fixed price and the forward curve information available within the market. The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we would realize in a current market exchange and are based on pertinent information available to us as of June 30, 2019 . Such amounts have not been comprehensively revalued for purposes of these financial statements and current estimates of fair value may differ significantly from the amounts presented herein. The following table presents information about the fair value measurement of our assets and liabilities as of June 30, 2019 and December 31, 2018 (in millions): Financial Instruments Recorded at Fair Value on a Recurring Basis: Fair Value Measurement Level June 30, 2019 December 31, 2018 Assets: Investments — mutual and bond funds (1) 1 $ 2 $ 2 Derivative asset — energy hedges (2) 2 8 — Total assets $ 10 $ 2 Liabilities: Derivative liability — energy hedges (3) 2 $ — $ 13 Derivative liability — interest rate swaps (3) 2 2 — Total liabilities $ 2 $ 13 (1) Included in Other assets in the condensed consolidated balance sheets. (2) The short-term balance is included in Prepaid expenses and other current assets and the long-term balance is included in Other assets in the condensed consolidated balance sheets. (3) The short-term balance is included in Accrued expenses and other current liabilities and the long-term balance is included in Other liabilities in the condensed consolidated balance sheets. The following financial instruments are recorded at their carrying amount (in millions): As of June 30, 2019 As of December 31, 2018 Financial Instruments Recorded at Carrying Amount: Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Liabilities: Long-term debt $ 2,462 $ 2,523 $ 2,342 $ 2,245 Project debt $ 138 $ 142 $ 152 $ 154 We are required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, accounts receivables, prepaid expenses and other assets, accounts payable and accrued expenses approximates their carrying value on the condensed consolidated balance sheets due to their short-term nature. |
DERIVATIVE INSTRUMENTS (Notes)
DERIVATIVE INSTRUMENTS (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | Energy Price Risk We have entered into a variety of contractual hedging arrangements, designated as cash flow hedges, in order to mitigate our exposure to energy market risk, and will continue to do so in the future. Our efforts in this regard involve only mitigation of price volatility for the energy we produce and do not involve taking positions (either long or short) on energy prices in excess of our physical generation. The amount of energy generation which we have hedged on a forward basis under agreements with various financial institutions as of June 30, 2019 is indicated in the following table (in millions): Calendar Year Hedged MWh 2019 2.7 2020 1.3 2021 0.2 2022 0.1 Total 4.3 As of June 30, 2019 , the fair value of the energy derivative asset was $8 million . The change in fair value was recorded as a component of AOCI. During the six months ended June 30, 2019 , cash provided by and used in energy derivative settlements of $12 million and $1 million , respectively, was included in net cash provided by operating activities on our condensed consolidated statement of cash flows. During the six months ended June 30, 2018 , cash provided by and used in energy derivative settlements of $8 million and $15 million , respectively, was included in the change in net cash provided by operating activities on our condensed consolidated statement of cash flows. Interest Rate Swaps We may utilize derivative instruments to reduce our exposure to fluctuations in cash flows due to changes in variable interest rates paid on our direct borrowings under the senior secured revolving credit facility and term loan of our subsidiary Covanta Energy (collectively referred to as the "Credit Facilities"). To achieve that objective, during the six months ended June 30, 2019 , we entered into a pay-fixed, receive-variable swap agreement with a financial institution on $100 million notional amount of our variable rate debt under the Credit Facilities. This interest rate swap is designated specifically to the Credit Facilities as a cash flow hedge and is recorded at fair value with changes in fair value recorded as a component of AOCI. For further information on our Credit Facilities see Note 11. Consolidated Debt . As of June 30, 2019 , the fair value of the interest rate swap derivative liability of $2 million |
CONSOLIDATED DEBT (Notes)
CONSOLIDATED DEBT (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
CONSOLIDATED DEBT | Consolidated debt is as follows (in millions): Average Rate (1) June 30, 2019 December 31, 2018 LONG-TERM DEBT: Revolving credit facility 4.35% $ 323 $ 212 Term loan, net 4.43% 389 394 Credit Facilities subtotal 712 606 Senior Notes, net of deferred financing costs 1,185 1,184 Tax-Exempt Bonds, net of deferred financing costs 489 488 Equipment financing arrangements 76 64 Total long-term debt 2,462 2,342 Less: Current portion (16 ) (15 ) Noncurrent long-term debt $ 2,446 $ 2,327 PROJECT DEBT: Total project debt, net of deferred financing costs and unamortized debt premium $ 138 $ 152 Less: Current portion (10 ) (19 ) Noncurrent project debt $ 128 $ 133 TOTAL CONSOLIDATED DEBT $ 2,600 $ 2,494 Less: Current debt (26 ) (34 ) TOTAL NONCURRENT CONSOLIDATED DEBT $ 2,574 $ 2,460 (1) On March 31, 2019 we entered into an interest rate swap agreement to swap the LIBOR portion of our floating interest rate to a fixed rate of 2.132% for $100 million notional amount of our variable rate debt under the Credit Facilities. See Note 10. Derivative Instruments for further information. Our subsidiary, Covanta Energy, has a senior secured credit facility consisting of a revolving credit facility (the “Revolving Credit Facility”) and a term loan (the “Term Loan”). The nature and terms of our Credit Facilities, Senior Notes, Tax-Exempt Bonds, project debt and other long-term debt are described in detail in Note 16. Consolidated Debt in our Annual Report on Form 10-K for the year ended December 31, 2018 . Revolving Credit Facility As of June 30, 2019 , we had unutilized capacity under the Revolving Credit Facility as follows (in millions): Total Facility Commitment Expiring Direct Borrowings Outstanding Letters of Credit Unutilized Capacity Revolving Credit Facility $ 900 2023 $ 323 $ 209 $ 368 Credit Agreement Covenants The loan documentation governing the Credit Facilities contains various affirmative and negative covenants, as well as financial maintenance covenants (financial ratios), that limit our ability to engage in certain types of transactions. We were in compliance with all of the affirmative and negative covenants under the Credit Facilities as of June 30, 2019 . Equipment Financing During March 2019, we commenced operations at the East 91st Street Marine Transfer Station, which is the second of a pair of marine transfer stations utilized under a 20-year waste transport and disposal agreement between Covanta and New York City's Department of Sanitation ("DSNY"). In accordance with the contract, we are responsible for purchasing and maintaining a sufficient number of transportation assets to allow the DSNY owned transfer stations to effectively handle the expected volumes of waste. As such, we entered into financing arrangements for the purchase of railcars and trailers (the "Equipment") to continue to meet the requirements of the DSNY contract. We commenced investing in the Equipment during 2019 and borrowed $14 million during the six months ended June 30, 2019 . Payments on these borrowings began in May 2019 and will continue monthly for a duration of 10 to 12 years with fixed interest rates ranging from 4.12% to 4.75% . |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | NOTE 12. LEASES We determine if an arrangement contains a lease at inception. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Our leases consist of leaseholds on EfW facilities, land, trucks and automobiles, office space and machinery and equipment. We utilized a portfolio approach in determining our discount rate. The portfolio approach takes into consideration the range of the term, the range of the lease payments, the category of the underlying asset and our estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. We also give consideration to our recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. Our lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recorded on the balance sheet, per the election of the practical expedient noted above. We recognize lease expense for these leases on a straight-line basis over the lease term. We recognize variable lease payments in the period in which the obligation for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period incurred. The components of lease expense were as follows (in millions): Three Months Ended Six Months Ended June 30, 2019 Finance lease: Amortization of assets, included in Depreciation and amortization expense $ 2 $ 4 Interest on lease liabilities, included in Interest expense 1 2 Operating lease: Amortization of assets, included in Total operating expense 2 4 Interest on lease liabilities, included in Total operating expense — 1 Total net lease cost $ 5 $ 11 Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): June 30, 2019 Operating leases: Operating lease ROU assets, included in Other assets $ 53 Current operating lease liabilities, included in Accrued expenses and other current liabilities $ 7 Noncurrent operating lease liabilities, included in Other liabilities 51 Total operating lease liabilities $ 58 Finance leases: Property and equipment, at cost $ 166 Accumulated amortization (21 ) Property and equipment, net $ 145 Current obligations of finance leases, included in Current portion of long-term debt $ 6 Finance leases, net of current obligations, included in Long-term debt 85 Total finance lease liabilities $ 91 Supplemental cash flow and other information related to leases was as follows (in millions): Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 5 Financing cash flows related to finance leases $ 3 Weighted average remaining lease term (in years): Operating leases 12.8 Finance leases 33.7 Weighted average discount rate: Operating leases 4.66 % Finance leases 5.06 % Maturities of lease liabilities were as follows (in millions): June 30, 2019 Operating Leases Finance Leases Remainder of 2019 $ 5 $ 5 2020 8 11 2021 8 11 2022 7 11 2023 7 10 2024 and thereafter 44 112 Total lease payments 79 160 Less: Amounts representing interest (21 ) (69 ) Total lease obligations $ 58 $ 91 As of June 30, 2019 , we had no additional significant operating or finance leases that had not yet commenced. Disclosures related to periods prior to the adoption of ASC 842 Rental expense was $6 million and $12 million for the three and six months ended June 30, 2018 |
LEASES | We determine if an arrangement contains a lease at inception. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Our leases consist of leaseholds on EfW facilities, land, trucks and automobiles, office space and machinery and equipment. We utilized a portfolio approach in determining our discount rate. The portfolio approach takes into consideration the range of the term, the range of the lease payments, the category of the underlying asset and our estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. We also give consideration to our recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. Our lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recorded on the balance sheet, per the election of the practical expedient noted above. We recognize lease expense for these leases on a straight-line basis over the lease term. We recognize variable lease payments in the period in which the obligation for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period incurred. The components of lease expense were as follows (in millions): Three Months Ended Six Months Ended June 30, 2019 Finance lease: Amortization of assets, included in Depreciation and amortization expense $ 2 $ 4 Interest on lease liabilities, included in Interest expense 1 2 Operating lease: Amortization of assets, included in Total operating expense 2 4 Interest on lease liabilities, included in Total operating expense — 1 Total net lease cost $ 5 $ 11 Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): June 30, 2019 Operating leases: Operating lease ROU assets, included in Other assets $ 53 Current operating lease liabilities, included in Accrued expenses and other current liabilities $ 7 Noncurrent operating lease liabilities, included in Other liabilities 51 Total operating lease liabilities $ 58 Finance leases: Property and equipment, at cost $ 166 Accumulated amortization (21 ) Property and equipment, net $ 145 Current obligations of finance leases, included in Current portion of long-term debt $ 6 Finance leases, net of current obligations, included in Long-term debt 85 Total finance lease liabilities $ 91 Supplemental cash flow and other information related to leases was as follows (in millions): Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 5 Financing cash flows related to finance leases $ 3 Weighted average remaining lease term (in years): Operating leases 12.8 Finance leases 33.7 Weighted average discount rate: Operating leases 4.66 % Finance leases 5.06 % Maturities of lease liabilities were as follows (in millions): June 30, 2019 Operating Leases Finance Leases Remainder of 2019 $ 5 $ 5 2020 8 11 2021 8 11 2022 7 11 2023 7 10 2024 and thereafter 44 112 Total lease payments 79 160 Less: Amounts representing interest (21 ) (69 ) Total lease obligations $ 58 $ 91 As of June 30, 2019 , we had no additional significant operating or finance leases that had not yet commenced. Disclosures related to periods prior to the adoption of ASC 842 Rental expense was $6 million and $12 million for the three and six months ended June 30, 2018 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | We and/or our subsidiaries are party to a number of claims, lawsuits and pending actions, most of which are routine and all of which are incidental to our business. We assess the likelihood of potential losses on an ongoing basis to determine whether losses are considered probable and reasonably estimable prior to recording an estimate of the outcome. If we can only estimate the range of a possible loss, an amount representing the low end of the range of possible outcomes is recorded. The final consequences of these proceedings are not presently determinable with certainty. As of June 30, 2019 and December 31, 2018 , accruals for our loss contingencies recorded in "Accrued expenses and other current liabilities" in our condensed consolidated balance sheets were $21 million and $16 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 condensed consolidated results of operations, financial position or cash flows. Lower Passaic River Matter. In August 2004, the United States Environmental Protection Agency (the “EPA”) notified our subsidiary, Covanta Essex Company (“Essex”), that it was a potentially responsible party (“PRP”) for Superfund response actions in the Lower Passaic River Study Area (“LPRSA”), a 17 mile stretch of river in northern New Jersey. Essex’s LPRSA costs to date are not material to its financial position and results of operations; however, to date the EPA has not sought any LPRSA remedial costs or natural resource damages against PRPs. In March 2016, the EPA released the Record of Decision (“ROD”) for its Focused Feasibility Study of the lower 8 miles of the LPRSA; the EPA’s selected remedy includes capping/dredging of sediment, institutional controls and long-term monitoring. In June 2018, PRP Occidental Chemical Corporation (“OCC”) filed a federal Superfund lawsuit against 120 PRPs including Essex with respect to past and future response costs expended by OCC with respect to the LPRSA. The Essex facility started operating in 1990 and Essex does not believe there have been any releases to the LPRSA, but in any event believes any releases would have been de minimis considering the history of the LPRSA; however, it is not possible at this time to predict that outcome or to estimate the range of possible loss relating to Essex’s liability in the matter, including for LPRSA remedial costs and/or natural resource damages. Other Matters Durham-York Contractor Arbitration In January 2019, the arbitrator issued a decision regarding outstanding disputes with our primary contractor for the Durham-York construction project, which related to: (i) claims by the contractor for the balance of the contract price withheld, change orders, delay damages and other expense reimbursement and (ii) claims by us for charges and liquidated damages for project completion delays. Other Commitments Other commitments as of June 30, 2019 were as follows (in millions): Letters of credit issued under the Revolving Credit Facility $ 209 Letters of credit - other 39 Surety bonds 180 Total other commitments — net $ 428 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 our Senior Notes and Tax-Exempt Bonds. Holders may require us to repurchase their Senior Notes and Tax-Exempt Bonds if a fundamental change occurs. For specific criteria related to the redemption features of the Senior Notes and Tax-Exempt Bonds, see Item 8. Financial Statements And Supplementary Data — Note 16. Consolidated Debt of our Annual Report on Form 10-K. We have issued or are party to guarantees and related contractual support obligations undertaken pursuant to agreements to construct and operate waste and energy facilities. For some projects, such performance guarantees include obligations to repay certain financial obligations if the project revenue is insufficient to do so, or to obtain or guarantee financing for a project. With respect to our businesses, we have issued guarantees to municipal clients and other parties that our subsidiaries will perform in accordance with contractual terms, including, where required, the payment of damages or other obligations. Additionally, damages payable under such guarantees for our 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. We have entered into certain guarantees of performance in connection with our recent divestiture activities. Under the terms of the arrangements, we guarantee performance should the guaranteed party fail to fulfill its obligations under the specified arrangements. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes thereto required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for fair presentation have been included in our condensed consolidated financial statements. All intercompany accounts and transactions have been eliminated. Operating results for the interim period are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The condensed consolidated balance sheet at December 31, 2018 , was derived from audited annual consolidated financial statements, but does not contain all of the notes thereto from the annual consolidated financial statements. This Form 10-Q should be read in conjunction with the Audited Consolidated Financial Statements and accompanying Notes in our Annual Report on Form 10-K for the year ended December 31, 2018 |
Change in Accounting Principle | Accounting Pronouncements Recently Adopted In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02 Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update allow a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for adjustments to the tax effect of items in AOCI, that were originally recognized in other comprehensive income, related to the new statutory rate prescribed in the Tax Cuts and Jobs Act enacted on December 22, 2017, which reduced the US federal corporate tax rate from 35% to 21%. The amendments in this update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the US federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. Effective January 1, 2019, we adopted this standard and recorded a reclassification of AOCI to accumulated deficit totaling $2 million . In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842) which amended guidance for lease arrangements to increase transparency and comparability by providing additional information to users of financial statements regarding an entity's leasing activities. Subsequent to the issuance of Topic 842, the FASB clarified the guidance through several ASUs; hereinafter the collection of lease guidance is referred to as Accounting Standards Codification (“ASC") 842. 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 standard requires a modified retrospective basis adoption. On January 1, 2019, we adopted ASC 842 using the modified retrospective method and recognized a right of use ("ROU") asset and liability in our consolidated condensed balance sheet in the amount of $57 million and $62 million , respectively, related to our operating leases where we are the lessee. There was no effect on our operating leases as lessor. Results for the six months ended June 30, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the historic accounting guidance under ASC Topic 840, Leases. As part of the adoption, we elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to: 1. Continue to apply the ASC 840 guidance, including the disclosure requirements, in the comparative periods presented in the year of adoption, the hindsight practical expedient; 2. Continue applying our current policy for accounting for land easements that existed as of, or expired before, January 1, 2019; 3. Not separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. We elected to apply this practical expedient to all underlying asset classes; 4. Not apply the recognition requirements in ASC 842 to short-term leases; and 5. Not record a right of use asset or right of use liability for leases with an asset or liability balance that would be considered immaterial. Refer to Note 12. Leases for additional disclosures required by ASC 842. |
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 |
Pass Through Costs | Pass through costs Pass through costs are costs for which we receive a direct contractually committed reimbursement from the public sector client that sponsors 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 public sector client reimbursements as a reduction to "Plant operating expense" in our condensed consolidated statement of operations. |
Fair Value Measurements | Fair Value Measurements Authoritative guidance associated with fair value measurements provides a framework for measuring fair value and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs), then significant other observable inputs (Level 2 inputs) and the lowest priority to significant unobservable inputs (Level 3 inputs). The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • For marketable securities, the carrying value of these amounts is a reasonable estimate of their fair value. • Fair values for long-term debt and project debt are determined using quoted market prices (Level 1). • The fair value of our floating to fixed rate interest rate swaps is determined using discounted cash flow valuation methodologies that apply the appropriate forward floating rate curve observable in the market to the contractual terms of our swap agreements. The fair value of the interest rate swaps is adjusted to reflect counterparty risk of non-performance, and is based on the counterparty’s credit spread in the credit derivatives market. • The fair values of our energy hedges were determined using the spread between our fixed price and the forward curve information available within the market. The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we would realize in a current market exchange and are based on pertinent information available to us as of June 30, 2019 . Such amounts have not been comprehensively revalued for purposes of these financial statements and current estimates of fair value may differ significantly from the amounts presented herein. |
Leases | We determine if an arrangement contains a lease at inception. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Our leases consist of leaseholds on EfW facilities, land, trucks and automobiles, office space and machinery and equipment. We utilized a portfolio approach in determining our discount rate. The portfolio approach takes into consideration the range of the term, the range of the lease payments, the category of the underlying asset and our estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. We also give consideration to our recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. Our lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recorded on the balance sheet, per the election of the practical expedient noted above. We recognize lease expense for these leases on a straight-line basis over the lease term. We recognize variable lease payments in the period in which the obligation for those payments is incurred. Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the commencement date, otherwise variable lease payments are recognized in the period incurred. |
Commitments and Contingencies | We and/or our subsidiaries are party to a number of claims, lawsuits and pending actions, most of which are routine and all of which are incidental to our business. We assess the likelihood of potential losses on an ongoing basis to determine whether losses are considered probable and reasonably estimable prior to recording an estimate of the outcome. If we can only estimate the range of a possible loss, an amount representing the low end of the range of possible outcomes is recorded. The final consequences of these proceedings are not presently determinable with certainty. |
EARNINGS PER SHARE ("EPS") AN_2
EARNINGS PER SHARE ("EPS") AND EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per Share | Basic and diluted weighted average shares outstanding were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Basic weighted average common shares outstanding 131 130 131 130 Dilutive effect of stock options, restricted stock and restricted stock units — — — 2 Diluted weighted average common shares outstanding 131 130 131 132 Anti-dilutive stock options, restricted stock and restricted stock units excluded from the calculation of EPS 2 2 2 — |
Schedule of Changes in Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive loss are as follows (in millions): Foreign Currency Translation Pension and Other Postretirement Plan Unrecognized Net Gain Net Unrealized (Loss) Gain On Derivatives Total Balance at December 31, 2017 $ (24 ) $ 2 $ (33 ) $ (55 ) Other comprehensive income before reclassifications — — — — Amounts reclassified from accumulated other comprehensive (loss) income 2 — 27 29 Net current period comprehensive income 2 — 27 29 Balance at June 30, 2018 $ (22 ) $ 2 $ (6 ) $ (26 ) Balance at December 31, 2018 $ (23 ) $ 2 $ (12 ) $ (33 ) Cumulative effect change in accounting for ASU 2018-02 (see Note1) — — 2 2 Balance at January 1, 2019 (23 ) 2 (10 ) (31 ) Other comprehensive (loss) income (2 ) — 6 4 Net current period comprehensive (loss) income (2 ) — 6 4 Balance at June 30, 2019 $ (25 ) $ 2 $ (4 ) $ (27 ) Amount Reclassified from Accumulated Other Comprehensive (Loss) Income Accumulated Other Comprehensive (Loss) Income Component Six Months Ended June 30, 2018 Affected Line Item in the Condensed Consolidated Statement of Operations Foreign currency translation $ 2 Net gain on sale of business and investments (1) Interest rate swap 27 Net gain on sale of business and investments (1) 29 Total before tax — Tax benefit Total reclassifications $ 29 Net of tax (1) Reclassification from AOCI to Net gain on sale of business and investments, related to the loss of a controlling interest in Dublin EfW, which required the entity to be deconsolidated from our financial statements in February 2018. For additional information see Item 1. Financial Statements, Note 3. New Business and Asset Management- Green Investment Group Limited Joint Venture. |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table shows our remaining performance obligations which primarily consists of the fixed consideration contained in our contracts as of June 30, 2019 (dollars in millions): Total Total remaining performance obligation $ 6,342 Percentage expected to be recognized: Remainder of 2019 5 % 2020 10 % |
Contract with Customer, Asset and Liability | The following table reflects the balance in our contract assets, which we classify as “Accounts receivable unbilled” and present net in Accounts receivable, and our contract liabilities, which we classify as deferred revenue and present in “Accrued expenses and other current liabilities” in our condensed consolidated balance sheet (in millions): June 30, December 31, Unbilled receivables $ 17 $ 16 Deferred revenue $ 19 $ 15 |
STOCK-BASED AWARD PLANS (Tables
STOCK-BASED AWARD PLANS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Expense Related to Stock-Based Awards | Compensation expense related to our stock-based awards was as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Share based compensation expense $ 7 $ 5 $ 15 $ 14 |
Unrecognized Stock-based Compensation Expense | Unrecognized stock-based compensation expense and weighted-average years to be recognized are as follows (in millions, except for weighted average years): As of June 30, 2019 Unrecognized stock- based compensation Weighted-average years to be recognized Restricted stock awards $ 1 0.7 Restricted stock units $ 25 1.8 |
SUPPLEMENTARY INFORMATION Suppl
SUPPLEMENTARY INFORMATION Supplementary Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Pass Through Costs | Pass through costs were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Pass through costs $ 12 $ 12 $ 25 $ 26 |
Schedule of Other Operating Cost and Expense, by Component | We recorded insurance gains, as a reduction to "Other operating expense, net," in our condensed consolidated statement of operations as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Insurance gains for property and clean-up costs, net of impairment charges $ — $ — $ — $ 7 Insurance gains for business interruption costs, net of costs incurred $ — $ 1 $ — $ 8 |
FINANCIAL INSTRUMENTS Financial
FINANCIAL INSTRUMENTS Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets and Liabilities | The following table presents information about the fair value measurement of our assets and liabilities as of June 30, 2019 and December 31, 2018 (in millions): Financial Instruments Recorded at Fair Value on a Recurring Basis: Fair Value Measurement Level June 30, 2019 December 31, 2018 Assets: Investments — mutual and bond funds (1) 1 $ 2 $ 2 Derivative asset — energy hedges (2) 2 8 — Total assets $ 10 $ 2 Liabilities: Derivative liability — energy hedges (3) 2 $ — $ 13 Derivative liability — interest rate swaps (3) 2 2 — Total liabilities $ 2 $ 13 (1) Included in Other assets in the condensed consolidated balance sheets. (2) The short-term balance is included in Prepaid expenses and other current assets and the long-term balance is included in Other assets in the condensed consolidated balance sheets. (3) The short-term balance is included in Accrued expenses and other current liabilities and the long-term balance is included in Other liabilities in the condensed consolidated balance sheets. The following financial instruments are recorded at their carrying amount (in millions): As of June 30, 2019 As of December 31, 2018 Financial Instruments Recorded at Carrying Amount: Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Liabilities: Long-term debt $ 2,462 $ 2,523 $ 2,342 $ 2,245 Project debt $ 138 $ 142 $ 152 $ 154 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Energy Generation Amounts | The amount of energy generation which we have hedged on a forward basis under agreements with various financial institutions as of June 30, 2019 is indicated in the following table (in millions): Calendar Year Hedged MWh 2019 2.7 2020 1.3 2021 0.2 2022 0.1 Total 4.3 |
CONSOLIDATED DEBT (Tables)
CONSOLIDATED DEBT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Consolidated Debt | Consolidated debt is as follows (in millions): Average Rate (1) June 30, 2019 December 31, 2018 LONG-TERM DEBT: Revolving credit facility 4.35% $ 323 $ 212 Term loan, net 4.43% 389 394 Credit Facilities subtotal 712 606 Senior Notes, net of deferred financing costs 1,185 1,184 Tax-Exempt Bonds, net of deferred financing costs 489 488 Equipment financing arrangements 76 64 Total long-term debt 2,462 2,342 Less: Current portion (16 ) (15 ) Noncurrent long-term debt $ 2,446 $ 2,327 PROJECT DEBT: Total project debt, net of deferred financing costs and unamortized debt premium $ 138 $ 152 Less: Current portion (10 ) (19 ) Noncurrent project debt $ 128 $ 133 TOTAL CONSOLIDATED DEBT $ 2,600 $ 2,494 Less: Current debt (26 ) (34 ) TOTAL NONCURRENT CONSOLIDATED DEBT $ 2,574 $ 2,460 (1) On March 31, 2019 we entered into an interest rate swap agreement to swap the LIBOR portion of our floating interest rate to a fixed rate of 2.132% for $100 million notional amount of our variable rate debt under the Credit Facilities. See Note 10. Derivative Instruments for further information. |
Revolving Credit Facility | As of June 30, 2019 , we had unutilized capacity under the Revolving Credit Facility as follows (in millions): Total Facility Commitment Expiring Direct Borrowings Outstanding Letters of Credit Unutilized Capacity Revolving Credit Facility $ 900 2023 $ 323 $ 209 $ 368 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease Expense and Supplemental Cash Flow Information | The components of lease expense were as follows (in millions): Three Months Ended Six Months Ended June 30, 2019 Finance lease: Amortization of assets, included in Depreciation and amortization expense $ 2 $ 4 Interest on lease liabilities, included in Interest expense 1 2 Operating lease: Amortization of assets, included in Total operating expense 2 4 Interest on lease liabilities, included in Total operating expense — 1 Total net lease cost $ 5 $ 11 Supplemental cash flow and other information related to leases was as follows (in millions): Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 5 Financing cash flows related to finance leases $ 3 Weighted average remaining lease term (in years): Operating leases 12.8 Finance leases 33.7 Weighted average discount rate: Operating leases 4.66 % Finance leases 5.06 % |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): June 30, 2019 Operating leases: Operating lease ROU assets, included in Other assets $ 53 Current operating lease liabilities, included in Accrued expenses and other current liabilities $ 7 Noncurrent operating lease liabilities, included in Other liabilities 51 Total operating lease liabilities $ 58 Finance leases: Property and equipment, at cost $ 166 Accumulated amortization (21 ) Property and equipment, net $ 145 Current obligations of finance leases, included in Current portion of long-term debt $ 6 Finance leases, net of current obligations, included in Long-term debt 85 Total finance lease liabilities $ 91 |
Maturity of Lease Liabilities, Finance | Maturities of lease liabilities were as follows (in millions): June 30, 2019 Operating Leases Finance Leases Remainder of 2019 $ 5 $ 5 2020 8 11 2021 8 11 2022 7 11 2023 7 10 2024 and thereafter 44 112 Total lease payments 79 160 Less: Amounts representing interest (21 ) (69 ) Total lease obligations $ 58 $ 91 |
Maturity of Lease Liabilities, Operating | Maturities of lease liabilities were as follows (in millions): June 30, 2019 Operating Leases Finance Leases Remainder of 2019 $ 5 $ 5 2020 8 11 2021 8 11 2022 7 11 2023 7 10 2024 and thereafter 44 112 Total lease payments 79 160 Less: Amounts representing interest (21 ) (69 ) Total lease obligations $ 58 $ 91 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | Other commitments as of June 30, 2019 were as follows (in millions): Letters of credit issued under the Revolving Credit Facility $ 209 Letters of credit - other 39 Surety bonds 180 Total other commitments — net $ 428 |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Details) T in Millions, MW in Millions, $ in Millions | 6 Months Ended | |||||
Jun. 30, 2019USD ($)MWTFacility | Jun. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Accumulated deficit | $ (419) | $ (334) | ||||
Right of use asset | 53 | |||||
Lease liability | $ 58 | |||||
Solid waste processed (in tons) | T | 22 | |||||
Number Of Energy From Waste Facilities | Facility | 41 | |||||
Annual Output | MW | 10 | |||||
Intangible assets, net | $ 269 | 279 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 0 | $ 1 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||||
Cash and cash equivalents | 102 | $ 39 | 58 | |||
Restricted funds held in trust- short term | 22 | 37 | 39 | |||
Restricted funds held in trust- long term | 8 | 24 | 8 | |||
Beginning of period balance presented in the statement of cash flows | 132 | 100 | $ 105 | $ 194 | ||
Statement of Cash Flows [Abstract] | ||||||
Cash provided by operating activities | 87 | 63 | ||||
Cash used in investing activities | (74) | (23) | ||||
Cash provided by financing activities | $ 14 | $ (136) | ||||
Accounting Standards Update 2016-02 [Member] | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Right of use asset | 57 | |||||
Lease liability | 62 | |||||
Retained Earnings, Unappropriated [Member] | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2 | |||||
Retained Earnings, Unappropriated [Member] | Accounting Standards Update 2018-02 [Member] | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 2 |
NEW BUSINESS AND ASSET MANAGM_2
NEW BUSINESS AND ASSET MANAGMENT (Details) £ in Millions | Feb. 12, 2018USD ($) | Jun. 30, 2019USD ($)MWhT | Jun. 30, 2019USD ($)MWhT | Dec. 31, 2018USD ($) | Jun. 30, 2019GBP (£)MWhT |
Rookery South Energy Recovery Facility | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, weight | T | 1,600 | 1,600 | 1,600 | ||
Equity method investment, energy output | MWh | 60 | 60 | 60 | ||
Equity method investment, percent | 80.00% | 80.00% | 80.00% | ||
Equity method investment | $ 44,000,000 | $ 44,000,000 | £ 34 | ||
Gain on sale of equity method investment | $ 57,000,000 | ||||
Rookery South Energy Recovery Facility | Veolia ES Limited | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, percent | 20.00% | 20.00% | 20.00% | ||
Equity method investment, waste processing capacity | 70.00% | 70.00% | 70.00% | ||
Rookery South Energy Recovery Facility | Green Investment Group Limited | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, right to invest percent | 40.00% | 40.00% | 40.00% | ||
Covanta Green | Green Investment Group Limited | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, right to invest percent | 50.00% | 50.00% | 50.00% | ||
Dublin EfW Facility | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, percent | 50.00% | ||||
Equity method investment | $ 145,000,000 | $ 145,000,000 | $ 149,000,000 | ||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | ||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | $ 167,000,000 | ||||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries, Net of Restricted Cash | $ 98,000,000 | ||||
Deconsolidation, Revaluation of Retained Investment, Gain (Loss), Amount | $ 204,000,000 | ||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 0 | ||||
Dublin EfW Facility | Green Investment Group Limited | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, percent | 50.00% | ||||
Prepaid Expenses and Other Current Assets | Rookery South Energy Recovery Facility | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment | 22,000,000 | 22,000,000 | |||
Other Assets | Covanta Green | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment | 15,000,000 | 15,000,000 | |||
Pittsfield And Springfield EfW | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Loss on investment disposal | $ (3,000,000) | $ (12,000,000) |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Details) - USD ($) | Feb. 12, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ (2,000,000) | $ 4,000,000 | ||
Dublin EfW Facility | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Equity method investment, percent | 50.00% | |||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | $ 167,000,000 | |||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries, Net of Cash | $ 98,000,000 | |||
Deconsolidation, Revaluation of Retained Investment, Gain (Loss), Amount | $ 204,000,000 | |||
Equity Method Investments | $ 145,000,000 | 149,000,000 | ||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 0 | |||
Green Investment Group Limited | Dublin EfW Facility | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Equity method investment, percent | 50.00% |
EARNINGS PER SHARE ("EPS") AN_3
EARNINGS PER SHARE ("EPS") AND EQUITY Narrative (Details) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Earnings Per Share [Abstract] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
EARNINGS PER SHARE ("EPS") AN_4
EARNINGS PER SHARE ("EPS") AND EQUITY Schedule of Basic and Diluted Earnings per Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Basic | 131 | 130 | 131 | 130 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0 | 0 | 2 |
Diluted | 131 | 130 | 131 | 132 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2 | 2 | 2 | 0 |
EARNINGS PER SHARE ("EPS") AN_5
EARNINGS PER SHARE ("EPS") AND EQUITY Schedule of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | $ 27 | $ 27 | $ 31 | $ 33 | $ 55 | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | $ 1 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 4 | $ 0 | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 29 | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 3 | $ (10) | (2) | 2 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 29 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | 4 | 29 | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 6 | (5) | 6 | 27 | ||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (27) | (26) | (27) | (26) | ||||||
Income Tax Expense (Benefit) | (3) | (22) | (1) | (31) | ||||||
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | 23 | 23 | 24 | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | (2) | 0 | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | (2) | 2 | ||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (25) | (22) | (25) | (22) | ||||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | ||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | 2 | 2 | 2 | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0 | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 0 | 0 | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | ||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (2) | (2) | (2) | (2) | ||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | ||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | 10 | 12 | 33 | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 2 | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 6 | 0 | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 27 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | 6 | 27 | ||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (4) | (6) | (4) | (6) | ||||||
AOCI Attributable to Parent [Member] | ||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | $ 27 | $ 26 | $ 27 | 26 | $ 36 | $ 33 | $ 11 | $ 55 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 2 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | ||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Income Tax Expense (Benefit) | $ 0 | |||||||||
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | ||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 2 |
REVENUES (Details)
REVENUES (Details) $ in Millions | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 6,342 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 5.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 10.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
REVENUES Contract Balances (Det
REVENUES Contract Balances (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, Gross | $ 17 | $ 16 |
Contract with Customer, Liability | 19 | $ 15 |
Contract with Customer, Liability, Revenue Recognized | $ 8 |
STOCK-BASED AWARD PLANS Narrati
STOCK-BASED AWARD PLANS Narrative (Details) | 6 Months Ended |
Jun. 30, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Repurchased In Period | 452,025 |
Stock Compensation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,085,497 |
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 | 395,320 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years |
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 | 6,236 |
Director [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 81,635 |
STOCK-BASED AWARD PLANS Schedul
STOCK-BASED AWARD PLANS Schedule of Compensation Expense Related to Stock-Based Awards (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation | $ 7 | $ 5 | $ 15 | $ 14 |
Director [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 81,635 | |||
Director [Member] | Quarterly Compensation [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 11,935 |
STOCK-BASED AWARD PLANS Unrecog
STOCK-BASED AWARD PLANS Unrecognized Stock-based Compensation Expense (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 8 months 12 days |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 25 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days |
SUPPLEMENTARY INFORMATION Sched
SUPPLEMENTARY INFORMATION Schedule of Pass Through Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Operating Expenses [Line Items] | ||||
Cost of Goods and Services Sold | $ 354 | $ 334 | $ 713 | $ 679 |
Pass through costs [Member] | ||||
Other Operating Expenses [Line Items] | ||||
Cost of Goods and Services Sold | $ 12 | $ 12 | $ 25 | $ 26 |
SUPPLEMENTARY INFORMATION Sch_2
SUPPLEMENTARY INFORMATION Schedule of Other Operating Cost and Expense, by Component (Details) - Other Operating Income (Expense) [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property Costs, net of impairment [Member] | ||||
Business Interruption Loss [Line Items] | ||||
Insurance Recoveries | $ 0 | $ 0 | $ 0 | $ 7 |
Business interruption and clean up costs, net [Member] | ||||
Business Interruption Loss [Line Items] | ||||
Insurance Recoveries | $ 0 | $ 1 | $ 0 | $ 8 |
SUPPLEMENTARY INFORMATION Narra
SUPPLEMENTARY INFORMATION Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Supplemental Cash Flow Elements [Abstract] | |
Impairment Charge on Reclassified Assets | $ 37 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 7.00% | (23.00%) |
Fair Value Measurements of Asse
Fair Value Measurements of Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Long-term Debt | $ 2,462 | $ 2,342 |
Project Debt | 138 | 152 |
Estimate of Fair Value Measurement [Member] | ||
Assets, Fair Value Disclosure | 10 | 2 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 2 | 13 |
Long-term Debt | 2,523 | 2,245 |
Project Debt | 142 | 154 |
Reported Value Measurement [Member] | ||
Long-term Debt | 2,462 | 2,342 |
Project Debt | 138 | 152 |
Fair Value, Inputs, Level 1 [Member] | Mutual And Bond Funds [Member] | Estimate of Fair Value Measurement [Member] | ||
Investments, Fair Value Disclosure | 2 | 2 |
Energy Hedges [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Derivative Asset | 8 | |
Derivative Liability | 0 | 13 |
Energy Hedges [Member] | Fair Value, Inputs, Level 2 [Member] | Energy Hedges [Member] | Estimate of Fair Value Measurement [Member] | ||
Derivative Asset, Current | 0 | |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative Liability | $ 2 | $ 0 |
DERIVATIVE INSTRUMENTS Narrativ
DERIVATIVE INSTRUMENTS Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Interest Rate Derivatives, at Fair Value, Net | $ 2 | ||
Energy Hedges [Member] | |||
Derivative [Line Items] | |||
Proceeds from Hedge, Investing Activities | 12 | $ 8 | |
Payments for (Proceeds from) Hedge, Investing Activities | 1 | $ 15 | |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 100 | ||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | $ 2 | $ 0 |
DERIVATIVE INSTRUMENTS Schedule
DERIVATIVE INSTRUMENTS Schedule of Energy Generation Amounts (Details) MW in Millions | Jun. 30, 2019MW |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 4.3 |
Fiscal Year 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 2.7 |
Fiscal Year 2020 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 1.3 |
Fiscal Year 2021 [Member] [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 0.2 |
Fiscal Year 2022 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 0.1 |
Schedule of Consolidated Debt (
Schedule of Consolidated Debt (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 712 | $ 606 |
Long-term Debt | 2,462 | 2,342 |
Total Long Term Debt, Senior Notes | 1,185 | 1,184 |
Total Long Term Debt, Tax Exempt Bonds | 489 | 488 |
Current portion of long-term debt | (16) | (15) |
Long-term debt, Noncurrent | 2,446 | 2,327 |
Project Debt | 138 | 152 |
Current portion of project debt | (10) | (19) |
Project Debt Noncurrent | 128 | 133 |
Debt, Total | 2,600 | 2,494 |
Debt, Current | (26) | (34) |
Debt, Noncurrent | $ 2,574 | 2,460 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 4.35% | |
Long-term line of credit | $ 323 | 212 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 4.43% | |
Equipment Financing Capital Lease [Member] | ||
Debt Instrument [Line Items] | ||
Capital Lease Obligations | $ 76 | $ 64 |
Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, fixed interest rate | 2.132% |
CONSOLIDATED DEBT Revolving Cre
CONSOLIDATED DEBT Revolving Credit Facility (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Long-term Debt | $ 2,462 | $ 2,342 |
Long-term line of credit | 712 | 606 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Total facility commitment | 900 | |
Long-term line of credit | 323 | $ 212 |
Line of credit facility, remaining borrowing capacity | 368 | |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | 39 | |
Letter of Credit [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | $ 209 |
CONSOLIDATED DEBT Narrative (De
CONSOLIDATED DEBT Narrative (Details) - DSNY [Member] $ in Millions | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | |
Line of Credit, Current | $ 14 |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Term | 10 years |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.12% |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Term | 12 years |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.75% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Operating leases, rent expense | $ 6 | $ 12 |
LEASES - Lease Expense (Details
LEASES - Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Amortization of assets, included in Depreciation and amortization expense | $ 2 | $ 4 |
Interest on lease liabilities, included in Interest expense | 1 | 2 |
Amortization of assets, included in Total operating expense | 2 | 4 |
Interest on lease liabilities, included in Total operating expense | 0 | 1 |
Total net lease cost | $ 5 | $ 11 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease ROU assets, included in Other assets | $ 53 |
Current operating lease liabilities, included in Accrued expenses and other current liabilities | 7 |
Noncurrent operating lease liabilities, included in Other liabilities | 51 |
Total operating lease liabilities | 58 |
Property and equipment, at cost | 166 |
Accumulated amortization | (21) |
Property and equipment, net | 145 |
Current obligations of finance leases, included in Current portion of long-term debt | 6 |
Finance leases, net of current obligations, included in Long-term debt | 85 |
Total finance lease liabilities | $ 91 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows related to operating leases | $ 5 |
Financing cash flows related to finance leases | $ 3 |
Weighted average remaining lease term (in years): operating | 12 years 9 months 18 days |
Weighted average remaining lease term (in years): finance | 33 years 8 months 12 days |
Weighted average discount rate: operating | 4.66% |
Weighted average discount rate: finance | 5.06% |
LEASES - Lease Maturity (Detail
LEASES - Lease Maturity (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating Leases | |
Remainder of 2019 | $ 5 |
2020 | 8 |
2021 | 8 |
2022 | 7 |
2023 | 7 |
2024 and thereafter | 44 |
Total lease payments | 79 |
Less: Amounts representing interest | (21) |
Total lease obligations | 58 |
Finance Leases | |
Remainder of 2019 | 5 |
2020 | 11 |
2021 | 11 |
2022 | 11 |
2023 | 10 |
2024 and thereafter | 112 |
Total lease payments | 160 |
Less: Amounts representing interest | (69) |
Total lease obligations | $ 91 |
COMMITMENTS AND CONTINGENCIES N
COMMITMENTS AND CONTINGENCIES Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual | $ 21 | $ 16 | |
Loss Contingency Accrual, Payments | 0 | $ 7 | |
Other Commitment | 428 | ||
Letter of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Letters of credit outstanding | 39 | ||
Surety Bonds [Member] | |||
Loss Contingencies [Line Items] | |||
Other Commitment | 180 | ||
Revolving Credit Facility [Member] | Letter of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Letters of credit outstanding | $ 209 |
Uncategorized Items - cva-06301
Label | Element | Value |
Retained Earnings, Unappropriated [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,000,000) |
Accounting Standards Update 2018-02 [Member] | Retained Earnings, Unappropriated [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,000,000) |