Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 12, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-06732 | ||
Entity Registrant Name | COVANTA HOLDING CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-6021257 | ||
Entity Address, Street Address | 445 South Street | ||
Entity Address, City | Morristown | ||
Entity Address, State | NJ | ||
Entity Address, Postal Zip Code | 07960 | ||
City Area Code | 862 | ||
Local Phone Number | 345-5000 | ||
Title of each class | Class A common stock | ||
Trading Symbol(s) | CVA | ||
Name of each exchange on which registered | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.1 | ||
Entity Common Stock, Shares Outstanding | 131,981,775 | ||
Documents Incorporated by Reference | Part of Form 10-K of Covanta Holding Corporation Documents Incorporated by Reference Part III Portions of the Proxy Statement to be filed with the Securities and Exchange Commission in connection with the 2021 Annual Meeting of Stockholders. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000225648 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING REVENUES: | |||
Total operating revenues | $ 1,904 | $ 1,870 | $ 1,868 |
OPERATING EXPENSES: | |||
Cost of Goods and Services Sold | 1,420 | 1,371 | 1,321 |
Other operating expenses | 52 | 64 | 65 |
General and administrative expenses | 120 | 122 | 115 |
Depreciation and amortization expense | 224 | 221 | 218 |
Impairment charges | 19 | 2 | 86 |
Total operating expense | 1,835 | 1,780 | 1,805 |
Operating income | 69 | 90 | 63 |
Other income (expense): | |||
Interest expense | (133) | (143) | (145) |
Net gain on sale of business and investments | 26 | 49 | 217 |
Loss on extinguishment of debt | (12) | 0 | (15) |
Other income (expense), net | 0 | 1 | (3) |
Total other (expense) income | (119) | (93) | 54 |
(Loss) income before income tax benefit and equity in net income from unconsolidated investments | (50) | (3) | 117 |
Income Tax Expense (Benefit) | (18) | (7) | (29) |
Equity in net income from unconsolidated investments | 4 | 6 | 6 |
Net (loss) income | $ (28) | $ 10 | $ 152 |
Weighted Average Common Shares Outstanding [Abstract] | |||
Basic | 132 | 131 | 130 |
Diluted | 132 | 133 | 132 |
(Loss) Earnings Per Share: | |||
Basic | $ (0.21) | $ 0.07 | $ 1.17 |
Diluted | (0.21) | 0.07 | 1.15 |
Cash Dividend Declared Per Share: | $ 0.49 | $ 1 | $ 1 |
Waste And Service [Member] | |||
OPERATING REVENUES: | |||
Total operating revenues | $ 1,412 | $ 1,393 | $ 1,327 |
Electricity [Member] | |||
OPERATING REVENUES: | |||
Total operating revenues | 357 | 329 | 343 |
Recycled Metals [Member] | |||
OPERATING REVENUES: | |||
Total operating revenues | 81 | 86 | 95 |
Other Revenue [Member] | |||
OPERATING REVENUES: | |||
Total operating revenues | $ 54 | $ 62 | $ 103 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (28) | $ 10 | $ 152 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 22 | (7) | 1 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | 0 | 0 | 0 |
Net unrealized (loss) gain on derivative instruments, net of tax benefit (expense) of $2, ($6) and ($2), respectively | (19) | 4 | 21 |
Other comprehensive income (loss) | 3 | (3) | 22 |
Comprehensive (loss) income attributable to Covanta Holding Corporation | $ (25) | $ 7 | $ 174 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized (loss) gain on derivative instruments, net of tax benefit (expense) of $2, ($6) and ($2), respectively | $ 2 | $ 6 | $ 2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current: | ||
Cash and cash equivalents | $ 55 | $ 37 |
Restricted funds held in trust | 11 | 18 |
Receivables (less allowances of $8 and $9, respectively) | 260 | 240 |
Prepaid expenses and other current assets | 117 | 105 |
Total Current Assets | 443 | 400 |
Property, plant and equipment, net | 2,421 | 2,451 |
Restricted funds held in trust | 6 | 8 |
Intangible Assets, Net (Excluding Goodwill) | 237 | 258 |
Goodwill | 302 | 321 |
Other assets | 297 | 277 |
Total Assets | 3,706 | 3,715 |
Current: | ||
Current portion of long-term debt | 18 | 17 |
Current portion of project debt | 9 | 8 |
Accounts payable | 75 | 36 |
Accrued Liabilities, Current | 303 | 292 |
Total Current Liabilities | 405 | 353 |
Long-term debt | 2,396 | 2,366 |
Project debt | 116 | 125 |
Deferred income taxes | 362 | 372 |
Other liabilities | 117 | 123 |
Total Liabilities | 3,396 | 3,339 |
Covanta Holding Corporation stockholders' equity: | ||
Preferred stock ($0.10 par value; authorized 10 shares; none issued and outstanding) | 0 | 0 |
Common stock ($0.10 par value; authorized 250 shares; issued; outstanding) | 14 | 14 |
Additional paid-in capital | 882 | 857 |
Accumulated other comprehensive (loss) income | (32) | (35) |
Retained Earnings (Accumulated Deficit) | (554) | (460) |
Treasury stock, at par | 0 | 0 |
Total Equity | 310 | 376 |
Total Liabilities and Equity | $ 3,706 | $ 3,715 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 8 | $ 9 |
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 10 | 10 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 250 | 250 |
Common Stock, Shares, Issued | 136 | 136 |
Common stock, shares outstanding | 132 | 131 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES: | |||
Net (loss) income | $ (28) | $ 10 | $ 152 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities from continuing operations: | |||
Depreciation, Amortization and Accretion, Net | 224 | 221 | 218 |
Amortization of long-term debt deferred financing costs | 4 | 5 | 5 |
(Loss) gain on asset sales | (26) | (49) | (217) |
Impairment charges | 19 | 2 | 86 |
Loss on extinguishment of debt | 12 | 0 | 15 |
Provision for expected credit losses | 1 | 2 | 2 |
Stock-based compensation expense | 29 | 25 | 24 |
Equity in net income from unconsolidated investments | 4 | 6 | 6 |
Increase (Decrease) in Deferred Income Taxes | (10) | (9) | (31) |
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, 50 Percent or Less Owned Persons | 9 | 9 | 13 |
Other, net | (6) | 3 | (10) |
Change in operating assets and liabilities, net of effects of acquisitions: | |||
Receivables | (21) | 94 | 7 |
Increase (Decrease) in Prepaid Expense and Other Assets | (2) | (5) | (3) |
Accounts payable and accrued expenses | 47 | (77) | (16) |
Net cash provided by operating activities | 254 | 226 | 238 |
INVESTING ACTIVITIES: | |||
Payments to Acquire Productive Assets | 162 | 158 | 206 |
Acquisition of businesses, net of cash acquired | 0 | 2 | (50) |
Proceeds from Sale of Other Assets, Investing Activities | 15 | 27 | 128 |
Proceeds from Insurance Settlement, Investing Activities | 1 | 0 | 18 |
Loss Contingency Accrual, Payments | 0 | 0 | (7) |
Investment in equity affiliate | (15) | (14) | (16) |
Other, net | (15) | (2) | (6) |
Net cash used in investing activities | (176) | (145) | (139) |
FINANCING ACTIVITIES: | |||
Proceeds from borrowings on long-term debt | 538 | 80 | 1,165 |
Proceeds from borrowings on revolving credit facility | (724) | (536) | (740) |
Proceeds from insurance premium financing | 37 | 29 | 25 |
Principal payments on long-term debt | (555) | (16) | (944) |
Payments of borrowings on revolving credit facility | (685) | (565) | (973) |
Principal payments on project debt | (8) | (18) | (23) |
Payments of deferred financing costs | (8) | (1) | (16) |
Cash dividends paid to stockholders | (89) | (133) | (134) |
Payments For Insurance Premium | (33) | (26) | (24) |
Proceeds from Related Party Debt | 9 | 0 | 0 |
Other, net | (1) | (8) | (5) |
Net cash used in financing activities | (71) | (122) | (189) |
Increase (Decrease) in Other Noncurrent Assets and Liabilities, Net | 6 | 1 | (1) |
Effect of exchange rate changes on cash and cash equivalents | 2 | (1) | 1 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 9 | (42) | (89) |
Cash and cash equivalents | 55 | 37 | 58 |
Restricted funds held in trust | 11 | 18 | 39 |
Restricted funds held in trust | 6 | 8 | 8 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 72 | 63 | 105 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | 63 | 105 | |
Cash Paid for Interest and Income Taxes: | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 112 | 152 | 136 |
Cash Paid of Income taxes, net of refunds | $ (4) | $ 5 | $ 2 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Additional Paid-In CapitalCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjustment | Accumulated (Deficit) Earnings | Accumulated (Deficit) EarningsCumulative Effect, Period of Adoption, Adjustment | Treasury Stock |
Beginning balance at Dec. 31, 2017 | $ 427 | $ 1 | $ 14 | $ 822 | $ 0 | $ (55) | $ (353) | $ 1 | $ 1 | |
Beginning balance, shares at Dec. 31, 2017 | 136,000 | 5,000 | ||||||||
Stock-based compensation expense | 24 | 24 | ||||||||
Dividend declared | (133) | (133) | ||||||||
Shares repurchased for tax withholdings for vested stock awards | (6) | (6) | ||||||||
Other | 0 | 1 | (1) | |||||||
Comprehensive income (loss), net of income taxes | 174 | 22 | 152 | |||||||
Ending balance at Dec. 31, 2018 | 487 | $ 0 | $ 14 | 841 | $ 0 | (33) | $ 1 | (334) | $ (1) | $ 1 |
Ending balance, shares at Dec. 31, 2018 | 136,000 | 5,000 | ||||||||
Stock-based compensation expense | 25 | 25 | ||||||||
Dividend declared | (135) | (135) | ||||||||
Shares repurchased for tax withholdings for vested stock awards | (8) | (8) | ||||||||
Shares issued in non-vested stock award | 1 | $ 1 | ||||||||
Other | (1) | (1) | 0 | |||||||
Comprehensive income (loss), net of income taxes | 7 | (3) | 10 | |||||||
Ending balance at Dec. 31, 2019 | 376 | $ 14 | 857 | (35) | (460) | $ 0 | ||||
Ending balance, shares at Dec. 31, 2019 | 136,000 | 5,000 | ||||||||
Stock-based compensation expense | 29 | 29 | ||||||||
Dividend declared | (66) | (66) | ||||||||
Shares repurchased for tax withholdings for vested stock awards | (5) | (5) | ||||||||
Shares issued in non-vested stock award | 0 | $ 0 | ||||||||
Shares issued in non-vested stock award (in shares) | (1,000) | |||||||||
Other | 1 | 1 | 0 | |||||||
Comprehensive income (loss), net of income taxes | (25) | 3 | (28) | |||||||
Ending balance at Dec. 31, 2020 | $ 310 | $ 14 | $ 882 | $ (32) | $ (554) | $ 0 | ||||
Ending balance, shares at Dec. 31, 2020 | 136,000 | 4,000 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | rms “we,” “our,” “ours,” “us” and “Company” refer to Covanta Holding Corporation and its subsidiaries; the term “Covanta Energy” refers to our subsidiary Covanta Energy, LLC and its subsidiaries. Organization Covanta is one of the world’s largest owners and operators of infrastructure for the conversion of Waste-to-Energy (“WtE”), and also owns and operates related waste transport, processing and disposal assets. WtE serves as both a sustainable waste management solution that is environmentally superior to landfilling and as a source of clean energy that reduces overall greenhouse gas emissions and is considered renewable under the laws of many states and under federal law. Our facilities are critical infrastructure assets that allow our customers, which are principally municipal entities, to provide an essential public service. Our WtE facilities earn revenue from the disposal of waste, generally under long-term contracts, the generation of electricity, and from the sale of metals recovered during the WtE process. We operate and/or have ownership positions in 41 WtE facilities currently in commercial operation, 39 of which are in North America. In total, these facilities process approximately 21 million tons of solid waste annually, equivalent to 8% of the post-recycled MSW generated in the United States ("U.S."). Our facilities produce approximately 10 million megawatt hours (“MWh”) of baseload electricity annually. We also operate waste management infrastructure, including 13 waste transfer stations, 20 material processing facilities, four landfills (primarily for ash disposal), one metals processing facility, and one ash processing facility (currently in start-up and testing phase), all of which are complementary to our core WtE business. We also have ownership positions in several projects currently in development and/or under construction in the United Kingdom ("UK"). In addition, we offer a variety of sustainable waste management solutions, including industrial, consumer products and healthcare waste handling, treatment and assured destruction, industrial wastewater treatment and disposal, product depackaging and recycling, on-site cleaning services, and transportation services. Together with our processing of non-hazardous "profiled waste" for purposes of assured destruction or sustainability goals in our WtE facilities, we offer these services under our Covanta Environmental Solutions ("CES") brand. We have one reportable segment which is comprised of our entire operating business. The results of our reportable segment are consistent with our consolidated results as presented on our consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018. Our reportable segment reflects the manner in which our Chief Operating Decision Maker ("CODM") reviews results and allocates resources and does not reflect the aggregation of multiple operating segments. Summary of Significant Accounting Policies The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The following is a description of our significant accounting policies. Principles of Consolidation The consolidated financial statements reflect the results of our operations, cash flows and financial position of our majority-owned or controlled subsidiaries. All intercompany accounts and transactions have been eliminated. Equity and Cost Method Investments Investments in unconsolidated entities over which we have significant influence are accounted for under the equity method of accounting. Under the equity method of accounting, the investment is initially recorded at cost, then our proportional share of the underlying net income or loss is recorded as Equity in net income from unconsolidated investments in our statement of operations with a corresponding increase or decrease to the carrying value of the investment. Distributions received from the investee reduce our carrying value of the investment and are recorded in the consolidated statements of cash flows using the cumulative earnings approach. These investments are evaluated for impairment if events or circumstances arise that indicate that the carrying amount of such assets may not be recoverable. There were no indicators of impairment related to our equity method investments for the years ended December 31, 2020 and 2019. Investments in entities over which we neither have significant influence nor control are accounted for using the cost method. Under the cost method, we record the investment at cost and recognize income for any dividends declared from distribution of the investments earnings. We review the cost method investments for impairment whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. We impair our cost method investments when we determine that there has been an “other-than temporary” decline in the investments' fair value compared to its carrying value. The fair value of the investment would then become the new cost basis of the investment. There were no indicators of impairment related to our cost method investments for the years ended December 31, 2020 and 2019. Revenue Recognition Our WtE projects generate revenue from three primary sources: 1) fees charged for operating facilities or for receiving waste for disposal (waste and service revenue); 2) the sale of electricity and/or steam (energy revenue); and 3) the sale of ferrous and non-ferrous metals that are recovered from the waste stream as part of the WtE process (recycled metals revenue). We may also generate other operating revenue from the construction, expansion or upgrade of a facility, when a public-sector client owns the facility. Our customers for waste services or facility operations are principally public-sector entities, though we also market disposal capacity at certain facilities to commercial customers. We also operate and/or have ownership positions in environmental services businesses, transfer stations and landfills (primarily for ash disposal) that are ancillary and complementary to our WtE projects and generate additional revenue from disposal or service fees. Revenue is allocated to the performance obligations in a contract on a relative standalone selling price basis. To the extent that we sell the good or service related to the performance obligation separately in the same market, the standalone selling price is the observable price that we sell the good or service separately in similar circumstances and to similar customers. The fees charged for our services are generally defined in our service agreements and vary based on contract-specific terms. Waste and Service Revenue Service Fee Service fee revenue is generated from the operations and maintenance services that we provide to owned and operated WtE facilities. We provide multiple waste disposal services aimed at operating and maintaining the facilities. Service fee revenue is generally based on an expected annual operating fee in relation to annual guaranteed waste processing and excess tonnage fees. The fees charged represent one performance obligation to operate and maintain each facility. Variable consideration primarily consists of fees earned for processing excess tonnage above a minimum specified in the contract. We act as the agent in contracts for the sale of energy and metals in service fee facilities that we operate and accordingly record revenues net for those contracts. Tip Fee Tip fees are generated from the sale of waste disposal services at WtE facilities that we own. We earn a per ton “tipping fee”, generally under long term contractual obligations with our host community and contractual obligations with municipal and commercial waste customers. The tipping fee is generally subject to an annual escalation. The performance obligation in these agreements is to provide waste disposal services for tons of acceptable waste. Revenue is recognized when the waste is delivered to the facility. Energy Sales Typical energy sales consist of: (a) electricity generation, (b) capacity and (c) steam. We primarily sell electricity either to utilities at contracted rates or at prevailing market rates in regional markets and in some cases, sell steam directly to industrial users. We sell a portion of electricity and other energy product outputs pursuant to contracts. As these contracts expire, we intend to sell an increasing portion of the energy output in competitive energy markets or pursuant to short-term contracts. Recycled Metals Revenue Recycled metals revenue represents the sale of recovered ferrous and non-ferrous metals to processors and end-users. The majority of our metals contracts are based on both an unspecified variable unit (i.e. tonnage) and variable forward market price index, while some contracts contain a fixed unit or fixed rate to form the basis of our overall transaction price. We recognize recycled metal revenue when control transfers to the customer. Other Operating Revenue (Construction) We generate additional revenue from the construction, expansion or upgrade of a facility, when a municipal client owns the facility and we provide the construction services. We generally use the cost incurred measure of progress for our construction contracts because it best depicts the transfer of control to the customer. Under the cost incurred measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Plant Operating Expense Plant operating expense includes facility employee costs, expense for materials and parts for facility scheduled and unscheduled maintenance and repair expense, which includes costs related to our internal maintenance team and non-facility employee costs. Plant operating expense also includes hauling and disposal expenses, fuel costs, chemicals and reagents, operating lease expense, and other facility operating related expense. Pass Through Costs Pass through costs are costs for which we receive a direct contractually committed reimbursement from the public sector client that sponsors an WtE project. These costs generally include utility charges, insurance premiums, ash residue transportation and disposal, and certain chemical costs. These costs are recorded net of public sector client reimbursements as a reduction to Plant operating expense in our consolidated statement of operations. Pass through costs were as follows (in millions): Year Ended December 31, 2020 2019 2018 Pass through costs $ 58 $ 57 $ 57 Income Taxes Deferred income taxes are based on the difference between the financial reporting and tax basis of assets and liabilities. The deferred income tax provision represents the change during the reporting period in the deferred tax assets and deferred tax liabilities, net of the effect of acquisitions and dispositions. Deferred tax assets include tax losses and credit carryforwards and are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. We file a consolidated federal income tax return for each of the periods covered by the consolidated financial statements, which includes all eligible U.S. subsidiary companies. Foreign subsidiaries are taxed according to regulations existing in the countries in which they do business. Our federal consolidated income tax return also includes the taxable results of certain grantor trusts, which are excluded from our consolidated financial statements; however, certain related tax attributes are recorded in our consolidated financial statements since they are part of our federal tax return. Stock-Based Compensation Stock-based compensation awards to employees are accounted for as compensation expense based on their grant date fair values. For additional information, see Note 7. Stock-Based Award Plans. Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments having maturities of three months or less from the date of purchase. These short-term investments are stated at cost, which approximates fair value. Balances held by our international subsidiaries are not generally available for near-term liquidity in our domestic operations. Restricted Funds Held in Trust Restricted funds held in trust are primarily amounts received and held by third party trustees relating to certain projects we own. We generally do not control these accounts and these funds may be used only for specified purposes. These funds include debt service reserves for payment of principal and interest on project debt. Revenue funds are comprised of deposits of revenue received with respect to projects prior to their disbursement. Other funds include escrowed debt proceeds, amounts held in trust for operations, maintenance, environmental obligations, operating lease reserves in accordance with agreements with our clients, and amounts held for future scheduled distributions. Such funds are invested principally in money market funds, bank deposits and U.S. treasury bills. Restricted fund balances are as follows (in millions): As of December 31, 2020 2019 Current Noncurrent Current Noncurrent Debt service funds - principal $ 2 $ — $ 2 $ — Revenue funds 3 — 3 — Other funds 6 6 13 8 Total $ 11 $ 6 $ 18 $ 8 Receivables and Allowance for Doubtful Accounts Receivables consist of amounts due to us from normal business activities. Allowances for doubtful accounts are the estimated losses from the inability of customers to make required payments. For our trade receivables, we assess each counterparty’s ability to pay for service by conducting a credit review. The credit review considers the counterparty’s established credit rating or our assessment of the counterparty’s creditworthiness based on our analysis of their financial statements when a credit rating is not available. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. Our activities include timely account reconciliation, dispute resolution, payment confirmation and monitoring current economic conditions and future forecast of economic conditions, to the extent that they impact the credit loss determination and can be reasonably estimated. We regularly sell certain receivables on a revolving basis to third-party financial institutions up to an aggregate purchase limit (the "Receivables Purchase Agreement" or "RPA"). Transfers under the RPA meet the requirements to be accounted for as sales in accordance with the Transfers and Servicing topic of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification. We receive a discounted purchase price for each receivable sold under the RPA and will continue to service and administer the subject receivables. For additional information, see Note 10. Accounts Receivable Securitization. Property, Plant and Equipment, net Property, plant, and equipment acquired in business acquisitions is recorded at our estimate of fair value on the date of the acquisition. Additions, improvements and major expenditures are capitalized if they increase the original capacity or extend the remaining useful life of the original asset more than one year. Maintenance repairs and minor expenditures are expensed in the period incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which generally range from three years for computer equipment to 50 years for certain infrastructure components of WtE facilities. Property, plant and equipment at our service fee operated facilities are not recognized on our balance sheet and any additions, improvements and major expenditures for which we are responsible at our service fee operated facilities are expensed in the period incurred. Our leasehold improvements are depreciated over the life of the lease term or the asset life, whichever is shorter. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the consolidated balance sheets and any gain or loss is reflected in the consolidated statements of operations. Property, plant and equipment, net consisted of the following (in millions): As of December 31, 2020 2019 Land $ 20 $ 20 Facilities and equipment 4,558 4,463 Landfills (primarily for ash disposal) 80 78 Construction in progress 90 58 Total 4,748 4,619 Less: accumulated depreciation and amortization (2,327) (2,168) Property, plant, and equipment — net $ 2,421 $ 2,451 Depreciation and amortization expense related to property, plant and equipment was $204 million, $201 million, and $199 million, for the years ended December 31, 2020, 2019 and 2018, respectively. Non-cash investing activities related to capital expenditures totaled $13 million, $6 million and $37 million as of December 31, 2020, 2019 and 2018, respectively, and were recorded in Accrued expenses and other current liabilities on our consolidated balance sheets. Property, plant and equipment is evaluated for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable over their estimated useful life. In reviewing for recoverability, we compare the carrying amount of the relevant assets to their estimated undiscounted future cash flows. When the estimated undiscounted future cash flows are less than the assets carrying amount, the carrying amount is compared to the assets fair value. If the assets fair value is less than the carrying amount an impairment charge is recognized to reduce the assets carrying amount to its fair value. For the years ended December 31, 2020, 2019 and 2018, we recognized an impairment on our property, plant and equipment of zero, $2 million and $63 million, respectively. For additional information, see Note 8. Supplementary Information - Impairment Charges . Asset Retirement Obligations We recognize a liability for asset retirement obligations when it is incurred, which is generally upon acquisition, construction, or development. Our liabilities include closure and post-closure costs for landfill cells and site restoration for certain WtE and power producing sites. We principally determine the liability using internal estimates of the costs using current information, assumptions, and interest rates, but also use independent appraisals as appropriate to estimate costs. When a new liability for asset retirement obligation is recorded, we capitalize the cost of the liability by increasing the carrying amount of the related long-lived asset. The liability is accreted to its present value each period and the capitalized cost is depreciated over the useful life of the related asset. We recognize period-to-period changes in the liability resulting from revisions to the timing or the amount of the original estimate of the undiscounted cash flows. Current and noncurrent asset retirement obligations are included in Accrued expenses and other current liabilities and Other liabilities, respectively, on our consolidated balance sheets. Our asset retirement obligation is presented as follows (in millions): As of December 31, 2020 2019 Beginning of period asset retirement obligation $ 26 $ 29 Accretion expense (1) 2 2 Liabilities settled (3) (3) Revisions in estimated cash flows 2 — Reclassification to assets held for sale — (2) End of period asset retirement obligation 27 26 Less: current portion (3) (4) Noncurrent asset retirement obligation $ 24 $ 22 (1) Accretion expense was included in Plant operating expense in the consolidated statements of operations. Intangible Assets and Liabilities Our waste, service and energy contracts are intangible assets related to long-term operating contracts at acquired facilities. These intangible assets and liabilities and other finite intangible assets, are recorded at their estimated fair market values upon acquisition based primarily upon discounted cash flows in accordance with accounting standards related to business combinations. Intangible assets with finite lives are evaluated for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable over their estimated useful life. In reviewing for recoverability, we compare the carrying amount of the relevant assets to their estimated undiscounted future cash flows. When the estimated undiscounted future cash flows are less than the assets carrying amount, the carrying amount is compared to the assets fair value. If the assets fair value is less than the carrying amount an impairment charge is recognized to reduce the assets carrying amount to its fair value. For the years ended December 31, 2020, 2019 and 2018, we recognized an impairment on our intangible assets of zero, zero and $22 million, respectively. For additional information, see Note 8. Supplementary Information - Impairment Charges and Note 12. Intangible Assets and Goodwill. Goodwill Goodwill is the excess of our purchase price over the fair value of the net assets of acquired businesses. We do not amortize goodwill, but we assess our goodwill for impairment at least annually. The evaluation of goodwill requires the use of estimates of future cash flows to determine the estimated fair value of the reporting unit. All goodwill is related to our one reportable segment, which is comprised of two reporting units, North America WtE and CES. A reporting unit is defined as an operating segment or a component of an operating segment to the extent discrete financial information is available that is reviewed by segment management which has been determined to be one level below our chief operating decision maker. If the carrying value of the reporting unit exceeds the fair value, an impairment charge is recognized to reduce the carrying value to the fair value. We performed the required annual impairment review of our recorded goodwill for our two reporting units as of October 1, 2020. We performed a qualitative assessment and concluded that the fair value of the reporting units exceed the carrying value as of the testing date. For additional information, see Note 12. Intangible Assets and Goodwill and Note 8. Supplementary Information - Impairment Charges. Business Combinations We recognize the assets acquired and liabilities assumed in a business combination at fair value including any noncontrolling interest of the acquired entity; recognize any goodwill acquired; establish the acquisition-date fair value based on the highest and best use by market participants for the asset as the measurement objective; and disclose information needed to evaluate and understand the nature and financial effect of the business combination. We expense transaction costs directly associated to the acquisition as incurred; capitalize in-process research and development costs, if any; and record a liability for contingent consideration at the measurement date with subsequent remeasurement recognized in the results of operations. Any costs for business restructuring and exit activities related to the acquired company are included in the post-combination results of operations. Tax adjustments related to previously recorded business combinations, if any, are recognized in the results of operations. Accumulated Other Comprehensive Income ("AOCI") The changes in accumulated other comprehensive (loss) income are as follows (in millions): Foreign Currency Translation Pension and Other Postretirement Plan Unrecognized Net Gain Net Unrealized (Loss) Gain on Derivatives Total Balance at December 31, 2018 $ (23) $ 2 $ (12) $ (33) Cumulative effect change in accounting for ASU 2018-02 — 1 — 1 Balance at January 1, 2019 (23) 3 (12) (32) Other comprehensive (loss) income (7) — 4 (3) Balance at December 31, 2019 $ (30) $ 3 $ (8) $ (35) Other comprehensive income (loss) 22 — (19) 3 Balance at December 31, 2020 $ (8) $ 3 $ (27) $ (32) Derivative Instruments We recognize derivative instruments on the balance sheet at their fair value. We have entered into swap agreements with various financial institutions to hedge our exposure to energy price risk and interest rate risk. Changes in the fair value of the energy derivatives and the interest rate swap are recognized as a component of AOCI. For additional information, see Note 15. Derivative Instruments . Foreign Currency Translation For foreign operations, assets and liabilities are translated at year-end exchange rates and revenue and expense are translated at the average exchange rates during the year. Unrealized gains and losses resulting from foreign currency translation are included in the consolidated statements of equity as a component of AOCI. Currency transaction gains and losses are recorded in other operating expense in the consolidated statements of operations. Defined Contribution Plans Substantially all of our employees in the U.S. are eligible to participate in the defined contribution plans we sponsor. The defined contribution plans allow employees to contribute a portion of their compensation on a pre-tax basis in accordance with specified guidelines. We match a percentage of employee contributions up to certain limits. We also provide a company contribution to the defined contribution plans for eligible employees. Our costs related to defined contribution plans were $20 million, $20 million and $18 million for the years ended December 31, 2020, 2019 and 2018, respectively. Share Repurchases Under our share repurchase program, common stock repurchases may be made, from time to time, in the open market, in privately negotiated transactions, or by other available methods, at management’s discretion and in accordance with applicable federal securities laws. The timing and amounts of any repurchases will depend on many factors, including our capital structure, the market price of our common stock and overall market conditions, and whether any restrictions then exist under our policies relating to trading in compliance with securities laws. Purchase price over par value for share repurchases are allocated to additional paid-in capital up to the weighted average amount per share recorded at the time of initial issuance of our common stock, with any excess recorded as a reduction to retained earnings. There were no share repurchases for the years ended December 31, 2020, 2019 and 2018. Use of Estimates The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts of assets or liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Significant estimates include: useful lives of long-lived assets, asset retirement obligations, construction expense estimates, unbilled service receivables, fair value of financial instruments, fair value of the reporting units for goodwill impairment analysis, fair value of long-lived assets for impairment analysis, renewable energy credits, stock-based compensation, cash flows and taxable income from future operations, valuation allowance for deferred taxes, liabilities related to uncertain tax positions, allowances for uncollectible receivables, and liabilities related to employee medical benefit obligations and certain litigation. Accounting Pronouncements Recently Adopted In August 2019, the FASB issued Accounting Standards Update (“ASU”) ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this guidance on January 1, 2020 on a prospective basis. The adoption of this guidance did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments and off balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. We adopted this guidance on January 1, 2020 using a modified retrospective approach. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
Recent Accounting Pronouncements | Standard Description Effective Date Effect on the financial statements ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting as amended by ASU 2021-01 This standard provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting due to the cessation of the London Interbank Offered Rate (LIBOR). The amendments are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendment in ASU 2021-01 clarifies that all derivative instruments affected by changes to interest rates used for discounting, margining or contract price alignment are in the scope of Accounting Standards Codification ("ASC") 848. First quarter of 2020 through December 31, 2022. Generally, our debt agreements and interest rate derivatives contracts include a transition clause in the event LIBOR is discontinued, as such, we do not expect the transition of LIBOR to have a material impact on our consolidated financial statements. During the second quarter of 2020, we elected to adopt the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. In addition, we elected to adopt the expedient to not reassess the conclusions reached on embedded derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. ASU 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This standard was issued with the intent to simplify various aspects of income taxes. The standard requires a prospective basis of adoption and a retrospective basis adjustment for amendments related to franchise taxes. First quarter of 2021, early adoption is permitted. The guidance removes exceptions to the general principles in Topic 740 for allocating tax expense between financial statement components, accounting basis differences stemming from an ownership change in foreign investments and interim period income tax accounting for year-to-date losses that exceed projected losses. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. |
NEW BUSINESS AND ASSET MANAGEME
NEW BUSINESS AND ASSET MANAGEMENT (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
New Business and Asset Management | Zhao County, China Venture On December 31, 2019, we made an equity investment in a venture that signed a concession agreement with Zhao County, China for the construction and operation of a new 396,000 metric ton-per-year WtE facility located approximately 200 miles from Beijing ("Zhao County"). The project is being developed jointly by Covanta and a strategic local partner, Longking Energy Development Co. Ltd. Construction began in April 2020, with completion expected in 2021. As of December 31, 2020 and 2019, our equity investment in the venture totaled $7 million and $5 million, respectively, and was included in Other assets on our consolidated balance sheets, which represented a 26% ownership interest. We are required to contribute an additional RMB 61 million ($9 million) by the end of 2021, at which point our eventual ownership interest in the venture is expected to increase to 49%. In January 2020, in connection with our Zhao County agreement, we obtained local equity financing in the amount of RMB 61 million ($9 million), the proceeds of which we provided to the project in the form of a shareholder loan. The loan is due in January 2022 and is collateralized through a pledge of our equity in the project. As of December 31, 2020, the shareholder loan balance was $9 million and was included in Other assets on our consolidated balance sheets. The total estimated project cost is RMB 650 million ($93 million), of which RMB 488 million ($75 million) will be financed through non-recourse project debt. Covanta Energy Asia Pacific Holdings Ltd., a wholly owned Covanta entity, issued a parent guarantee for $15 million of the total debt. The fair market value of the guarantee liability is deemed to be immaterial. Green Investment Group Limited ("GIG") Joint Ventures In December 2017, we entered into a strategic partnership with GIG, a subsidiary of Macquarie Group Limited, to develop WtE projects in the UK and Ireland. Protos In December 2020, we reached financial close on the Protos Energy Recovery Facility (“Protos”), a 400,000 metric ton-per-year, 49 megawatt WtE facility under construction in Cheshire, England. Through a 50/50 jointly-owned and governed entity Covanta Green Protos Holding Ltd., we and GIG own a 75% interest in Protos with Biffa plc, a UK waste services provider, holding the remaining 25% interest. Biffa will provide approximately 60% of the waste supply to the project, and we will provide operations and maintenance ("O&M") services, in each case under a 20-year arrangement. Protos is expected to commence commercial operations in 2024. In connection with the transaction, we received $19 million (£14 million) of total consideration for the value of our development costs incurred to date and related fees and for GIG’s right to invest 37.5% in the project (50% investment in Covanta Green Protos Holding Ltd.). For the year ended December 31, 2020, as a result of this consideration and a step-up in the fair value of our retained equity investment, we recorded a gain of $17 million (£13 million) in Net gain on sale of business and investments in our condensed consolidated statement of operations. As of December 31, 2020, $6 million of the consideration received remains in Covanta Green Protos Holding Ltd. and is expected to be utilized for future equity contributions in projects in the UK. As of December 31, 2020, our equity method investment of $6 million and a shareholder loan of $1 million related to this project were included in Other assets on our consolidated balance sheets. The fair value of our retained equity investment in Covanta Green Protos Holding Ltd. was determined by the fair value of the consideration received from GIG for the right to invest in 37.5% in the project. Newhurst In February 2020, we reached financial close on the Newhurst Energy Recovery Facility (“Newhurst”), a 350,000 metric ton-per-year, 42 megawatt WtE facility under construction in Leicestershire, England. Through a 50/50 jointly-owned and governed entity Covanta Green UK Ltd. ("Covanta Green"), we and GIG own a 50% interest in Newhurst with Biffa plc, holding the remaining 50% interest. Biffa will provide approximately 70% of the waste supply to the project, and we will provide O&M services, in each case under a 20-year arrangement. Newhurst is expected to commence commercial operations in 2023. In connection with the transaction, we received $8 million (£5 million) of total consideration for the value of our development costs incurred to date and related fees and for GIG’s right to invest 25% in the project (50% investment in Covanta Green). For the year ended December 31, 2020, as a result of this consideration and a step-up in the fair value of our retained equity investment, we recorded a gain of $9 million (£7 million) in Net gain on sale of business and investments in our condensed consolidated statement of operations. As of December 31, 2020, $4 million of the consideration received remains in Covanta Green and is expected to be utilized for future equity contributions in projects in the UK. As of December 31, 2020, our equity method investment of $9 million and a shareholder loan of $3 million related to this project were included in Other assets on our consolidated balance sheets. The fair value of our retained equity investment in Covanta Green was determined by the fair value of the consideration received from GIG for the right to invest in 25% in the project. Rookery In March 2019, we reached financial close on the Rookery South Energy Recovery Facility (“Rookery”), a 545,000 metric ton-per-year, 60 megawatt WtE facility under construction in Bedfordshire, England. Through a 50/50 jointly-owned and governed entity Covanta Green, we and GIG own an 80% interest in the project. We co-developed the project with Veolia ES (UK) Limited (“Veolia”), who owns the remaining 20%. We provide technical oversight during construction and will provide 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 the first half of 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 year ended December 31, 2019, as a result of this consideration and a step-up in the fair value of our retained equity investment, we recorded a gain of $57 million in Net gain on sale of business and investments in our consolidated statement of operations. As of December 31, 2020 and 2019, $17 million and $22 million, respectively, of the consideration received remains in Covanta Green and is expected to be utilized for future equity contributions in projects in the UK. As of December 31, 2020 and 2019, our equity method investment of $4 million and $9 million, respectively, was included in Other assets on our condensed consolidated balance sheets. The fair value of our retained equity investment in Covanta Green was determined by the fair value of the consideration received from GIG for the right to invest in 40% in the project. Earls Gate In December of 2018, we reached financial close on the Earls Gate Energy Centre project ("Earls Gate"), a 215,000 metric ton-per-year, 21.5 megawatt equivalent generation capacity WtE facility to be built in Grangemouth, Scotland. GIG and Covanta together hold a 50% equity ownership in the project company, through a 50/50 joint venture, Covanta Jersey Assets Ltd., with co-investor and developer Brockwell Energy owning the remaining 50% stake. The Earls Gate facility is expected to commence operations in 2023. As of December 31, 2020 and 2019, our equity investment of $9 million, for each of the years, and a shareholder loan of $16 million and $15 million, respectively, related to this project were included in Other assets on our consolidated balance sheets. For further information, see Note 13. Equity Method Investments . Dublin WtE During 2017, we completed construction of the Dublin WtE facility ("Dublin WtE"), a 600,000 metric ton-per-year, 58 megawatt facility in Dublin, Ireland. Operational commencement began in October 2017. Covanta Europe Assets, Ltd. ("CEAL"), is structured as a 50/50 joint venture. As an initial step, we contributed 100% of Dublin WtE into CEAL, and GIG acquired a 50% ownership in CEAL for €136 million ($167 million). We retained a 50% equity interest in CEAL and retained our role as O&M service provider for the Dublin WtE. On February 12, 2018, GIG's investment in CEAL closed and 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 WtE, which required the entity to be deconsolidated from our financial statements as of the sale date. For the year ended December 31, 2018, we recorded a gain on the loss of a controlling interest of the business of $204 million which was included in Net gain on sale of business and investments on our consolidated statement of operations. The gain resulted from the excess of proceeds received plus the fair value of our non-controlling interest in Dublin WtE over our carrying value. 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 in CEAL and the carrying amounts of the underlying net assets as they were fair valued contemporaneously as of the sale date. As of December 31, 2020 and 2019, our equity investment of $153 million and $143 million, respectively, was included in Other assets on our consolidated balance sheets. For further information, see Note 13. Equity Method Investments . Palm Beach Resource Recovery Acquisition |
DISPOSITIONS AND DISCONTINUED O
DISPOSITIONS AND DISCONTINUED OPERATIONS (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Dispositions [Abstract] | |
Dispositions and Discontinued Operations | Divestiture of Springfield and Pittsfield WtE facilities During the second quarter of 2019, as part of our ongoing asset rationalization and portfolio optimization efforts, we divested our Pittsfield and Springfield WtE facilities. During the first quarter of 2019, 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. For the year ended December 31, 2019, we recognized a loss of $11 million, which was included in Net gain on sale of business and investments in our condensed consolidated statement of operations. Sale of Hydro Facility Investment In July 2018, we sold our equity interests in a hydroelectric facility located in the state of Washington for proceeds of approximately $12 million. For the year ended December 31, 2018, we recorded a gain of $7 million related to this transaction which was included in Net gain on sale of business and investments on our consolidated statement of operations. China Investments In February 2018, we sold our remaining investment in Sanfeng Environment to CITIC for proceeds of $13 million and recorded a gain on the sale of $6 million, which was included in Net gain on sale of business and investments on our condensed consolidated statement of operations for the year ended December 31, 2018. |
EQUITY AND EARNINGS PER SHARE (
EQUITY AND EARNINGS PER SHARE ("EPS") (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
Equity and Earnings Per Share | As of December 31, 2020, there were 136 million shares of common stock issued of which 132 million shares were outstanding; the remaining 4 million shares of common stock issued but not outstanding were held as treasury stock. As of December 31, 2020, there were 10 million shares of preferred stock authorized, with none issued or outstanding. The preferred stock may be divided into a number of series as defined by our Board of Directors. The Board of Directors is authorized to fix the rights, powers, preferences, privileges and restrictions granted to and imposed upon the preferred stock upon issuance. In May 2014, the stockholders of the Company approved the Covanta Holding Corporation 2014 Equity Award Plan (the “Plan”). In May 2019, the stockholders of the Company approved amendments to the Plan, including the authorization of additional shares of the Company’s common stock issuable under the Plan. For additional information, see Note 7. Stock-Based Award Plans . EPS We calculate basic 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): Year Ended December 31, 2020 2019 2018 Basic weighted average common shares outstanding 132 131 130 Dilutive effect of stock options, restricted stock and restricted stock units — 2 2 Diluted weighted average common shares outstanding 132 133 132 Anti-dilutive stock options, restricted stock and restricted stock units excluded from the calculation of EPS 3 — — |
REVENUES (Notes)
REVENUES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 6. REVENUES Disaggregation of revenue A disaggregation of revenue from contracts with customers is presented on our consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018. See Note 1. Organization and Summary of Significant Accounting Policies for a discussion of our reportable segment. Performance Obligations and Transaction Price Allocated to Remaining Performance Obligations The following summarizes our performance obligations, a description of how transaction price is allocated to future performance obligations and the practical expedients applied: Revenue Type Timing Performance Obligations Measure of Progress Type Practical Expedients Service Fee Over time Operations/waste disposal Time elapsed Fixed Constrained (1) (2) Tip Fee Over time Waste disposal Units delivered Fixed Right to invoice Energy Over time Energy Units delivered Fixed Right to invoice & Series (2) Capacity Time elapsed Steam Units delivered Metals Point in time Sale of ferrous & Units delivered Variable Less than 1 year Other (Construction) Over time Construction Costs incurred Fixed Less than 1 year (1) The amount of variable consideration that is included in the transaction price may be constrained, and is included only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. We estimate our variable service fee using the expected value method. (2) Service Fee and Energy contracts have been determined to have an annual and monthly series, respectively. 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 December 31, 2020. The guidance provides certain conditions (identified as "practical expedients") that limit this disclosure requirement. We have contracts that meet the following practical expedients provided by ASC 606: 1. The performance obligation is part of a contract that has an original expected duration of one year or less. 2. Revenue is recognized from the satisfaction of the performance obligations in the amount billable to our customer that corresponds directly with the value to the customer of our performance completed to date (i.e. “right-to-invoice” practical expedient). 3. The variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct service or a series of distinct services that are substantially the same and that have the same pattern of transfer to our customer (i.e. “series practical expedient”). Our remaining performance obligation primarily consists of the fixed consideration contained in our contracts. As of December 31, 2020, our total remaining performance obligation was $6.0 billion, of which we expect to recognize 11% and 10% in 2021 and 2022, respectively. Contract Balances The following table reflects the balance in our contract assets, which we classify as accounts receivable - unbilled and present net in Receivables, and our contract liabilities, which we classify as deferred revenue and present in Accrued expenses and other current liabilities in our condensed consolidated balance sheets (in millions): December 31, 2020 December 31, 2019 Unbilled receivables $ 23 $ 16 Deferred revenue $ 17 $ 18 For the year ended December 31, 2020, revenue recognized that was included in deferred revenue on our consolidated balance sheet at the beginning of the period totaled $6 million. |
STOCK-BASED AWARD PLANS
STOCK-BASED AWARD PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Award Plans | NOTE 7. STOCK-BASED AWARD PLANS Stock-Based Award Plans In May 2014, the stockholders of the Company approved the Plan to provide incentive compensation to non-employee directors, officers and employees, and to consolidate the two previously existing equity compensation plans into a single plan: the Company’s Equity Award Plan for Employees and Officers (the “Former Employee Plan”) and the Company’s Equity Award Plan for Directors (the “Former Director Plan,” and together with the Former Employee Plan, the “Former Plans”). Shares that were available for issuance under the Former Plans will be available for issuance under the Plan. In May 2019, the Company’s stockholders authorized and approved amendments to the Plan, including the authority to issue an additional 6.0 million shares of the Company’s common stock. The purpose of the Plan is to promote our interests (including our subsidiaries and affiliates) and our stockholders’ interests by using equity interests to attract, retain and motivate our management, non-employee directors and other eligible persons and to encourage and reward their contributions to our performance and profitability. The Plan provides for awards to be made in the form of (a) shares of restricted stock, (b) restricted stock units, (c) incentive stock options, (d) non-qualified stock options, (e) stock appreciation rights, (f) performance awards, or (g) other stock-based awards which relate to or serve a similar function to the awards described above. Awards may be made on a standalone, combination or tandem basis. Stock-Based Compensation Generally, we recognize compensation costs using the graded vesting attribution method over the requisite service period of the award, which is generally three years. Forfeitures are accounted for as they occur. Stock-based compensation expense is as follows (in millions, except for weighted average years): Total Stock-Based Compensation Expense Unrecognized Weighted-average years to be recognized 2020 2019 2018 As of December 31, 2020 Restricted Stock Units $ 19 $ 17 $ 14 $ 9 1.5 Performance Awards $ 9 $ 6 $ 5 $ 4 1.7 Restricted Stock Awards $ — $ 2 $ 5 $ — 0.2 Stock Options $ 1 $ — $ — $ 2 1.7 Tax benefit related to compensation expense $ 3 $ 5 $ 5 During the year ended December 31, 2020, we withheld 432,967 shares of our common stock in connection with tax withholdings for vested stock awards. As of December 31, 2020, there were approximately 4 million shares of common stock available for future issuance under our equity plans. Restricted Stock Units ("RSUs") We award RSUs to eligible employees and our directors that entitle the recipient to receive shares of our common stock as the units vest. We calculate the fair value of RSUs based on the closing price of our stock on the date the award was granted. During the year ended December 31, 2020, we awarded certain employees grants of RSUs that will be expensed over the requisite service period. The terms of the RSUs include vesting provisions based solely on continued service. If the service criteria are satisfied, the RSUs will generally vest during March of 2021, 2022, and 2023. During the year ended December 31, 2020, we awarded RSUs for annual director compensation and for quarterly director fees for certain of our directors who elected to receive RSUs in lieu of cash payments. We determined the service vesting condition of these restricted stock units to be non-substantive and, in accordance with accounting principles for stock compensation, recorded the entire fair value of the awards as compensation expense on the grant date. Changes in nonvested RSUs as of December 31, 2020 were as follows (in thousands, except per share amounts): Number of Shares Weighted-Average Nonvested at the beginning of the year 2,272 $ 15.86 Granted 2,075 $ 10.75 Vested (686) $ 15.80 Forfeited (178) $ 13.58 Nonvested at the end of the year 3,483 $ 12.84 The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2020, 2019, and 2018 was $10.75, $16.70, and $14.87, respectively. The total fair value of shares vested during the years ended December 31, 2020, 2019, and 2018, was $11 million, $10 million, and $8 million, respectively. Performance Awards Performance awards represent a contingent right to receive shares of our common stock based on performance targets and consist of two types of awards, cumulative free cash flow ("FCF") awards and total stockholder return ("TSR") awards. Issuance and payment of the performance award is dependent upon the employee’s continued employment during the performance period and the achievement of performance goals achieved. For our FCF and TSR awards, we recognize compensation costs ratably over the performance period. The FCF Awards and the TSR Awards will each cliff vest at the end of the 3 year performance period, however, the number of shares delivered will vary based upon the attained level of performance and may range from 0 to 2 times the number of target units awarded. Stock-based compensation expense for the FCF Awards is recognized beginning in the period when management has determined it is probable the financial performance metric will be achieved for the respective vesting period. Stock-based compensation expense for TSR awards are fair valued on the date of grant and expensed over the performance measurement period. The grant date fair value for the FCF Awards granted were computed using the closing price of the common stock on the grant date. The grant date fair value for the TSR Awards granted were calculated using a Monte Carlo simulation. The Monte Carlo valuation assumptions utilized for the TSR awards were: 2020 2019 2018 Expected life (1) 2.81 years 2.82 years 2.82 years Expected stock price volatility (2) 28.06 % 3.28 % 2.63 % Risk-free interest rate (3) 0.56 % 2.48 % 2.38 % Stock price (4) $ 10.95 $ 16.35 $ 14.80 (1) Represents the remaining performance measurement period as of the valuation date. (2) Based on each entity’s historical stock price volatility over the remaining performance measurement period. (3) The risk free rate equals the yield, as of the grant date, on zero coupon U.S. Treasury STRIPS that have a term equal to the length of the remaining performance measurement period. (4) The stock price is the closing price of our common stock on the grant date. Changes in performance awards as of December 31, 2020 were as follows (in thousands, except per share amounts): Number of Shares Weighted-Average Nonvested at the beginning of the year 1,193 $ 16.57 Granted 629 $ 10.89 Vested (410) $ 16.30 Forfeited (22) $ 13.15 Nonvested at the end of the year 1,390 $ 14.13 The weighted-average grant-date fair value of performance awards granted during the years ended December 31, 2020, 2019, and 2018 was $10.89, $17.90, and $15.50, respectively. The total fair value of shares vested during the years ended December 31, 2020, 2019, and 2018, was $7 million, $6 million and zero, respectively. Restricted Stock Awards ("RSAs") RSAs that have been issued to employees typically vest over a three-year period. RSAs are stock-based awards for which the employee or director does not have a vested right to the stock (“nonvested”) until the requisite service period has been rendered. RSAs to employees are subject to forfeiture if the employee is not employed on the vesting date. RSAs issued to directors are not subject to forfeiture in the event a director ceases to be a member of the Board of Directors, except in limited circumstances. RSAs will be expensed over the requisite service period. Prior to vesting, restricted stock awards have all of the rights of common stock (other than the right to sell or otherwise transfer, when issued). We calculate the fair value of share-based stock awards based on the closing price on the date the award was granted. During the year ended December 31, 2020, we awarded our director's RSAs for the annual director compensation. We determined the service vesting condition of these restricted stock awards to be non-substantive and, in accordance with accounting principles for stock compensation, recorded the entire fair value of the awards as compensation expense on the grant date. Changes in nonvested restricted stock awards as of December 31, 2020 were as follows (in thousands, except per share amounts): Number of Shares Weighted-Average Grant Date Fair Value Nonvested at the beginning of the year 242 $ 16.26 Granted 26 $ 8.41 Vested (235) $ 16.30 Forfeited (3) $ 15.90 Nonvested at the end of the year 30 $ 9.12 The weighted-average grant-date fair value of RSAs granted during the years ended December 31, 2020, 2019, and 2018 was $8.41, $17.64, and $15.20 respectively. The total fair value of shares vested during the years ended December 31, 2020, 2019, and 2018, was $4 million, $7 million, and $11 million, respectively. Stock Options We have awarded stock options to certain employees and directors. Stock options awarded to directors vest immediately and expire over 10 years. Stock options awarded to employees typically vest annually over 3 years and expire over 6 years. We calculate the fair value of our share-based option awards using the Black-Scholes option pricing model which requires estimates of the expected life of the award and stock price volatility. We use the Black-Scholes option pricing model for determining the estimated fair value for stock options. The weighted-average assumptions used in the Black-Scholes option pricing model were as follows: 2020 Grants Expected stock price volatility 36.1 % Risk-free interest rate 0.4 % Expected life of options (in years) 5 Expected dividend yield 4.2 % Weighted-average grant date fair value of the options $ 1.54 The following table summarizes activity and balance information of the options under the Plan as of December 31, 2020: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (1) (in thousands, except per share amounts) Outstanding at the beginning of the year 25 $ 20.58 Granted 2,250 $ 7.62 Exercised — $ — Expired — $ — Forfeited — $ — Outstanding at the end of the year 2,275 $ 7.76 5.8 $ 12,398 Options exercisable at year end 25 $ 20.58 3.5 $ — |
SUPPLEMENTARY INFORMATION (Note
SUPPLEMENTARY INFORMATION (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
SUPPLEMENTARY INFORMATION | perating Expense, net Insurance Recoveries Fairfax County WtE Facility In February 2017, our Fairfax County WtE 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. The cost of repair or replacement of assets and business interruption losses for the above matter was 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 consolidated statement of operations as follows (in millions): Year Ended December 31, 2020 2019 2018 Insurance gains for property and clean-up costs, net of impairment charges $ 1 $ — $ 18 Insurance gains for business interruption costs, net of costs incurred $ 1 $ 2 $ 19 Impairment Charges Impairment charges were as follows (in millions): Year Ended December 31, 2020 2019 2018 Impairment charges $ 19 $ 2 $ 86 The goodwill recorded for our CES reporting unit totaled $46 million as of December 31, 2019, and resulted from previously acquired materials processing facilities that are specially designed to process, treat, recycle, and dispose of solid and liquid wastes, which includes waste from the commercial sector. We performed the required annual impairment review of our recorded goodwill as of October 1, 2019. Based on the results of the test performed, we determined that the estimated fair value of the CES reporting unit exceeded the carrying value by 5%; therefore, we did not record a goodwill impairment charge for the year ended December 31, 2019. Due to the marginal outcome of our review of goodwill recorded for our CES reporting unit as of October 1, 2019, we continued to monitor the CES reporting unit for impairment through the end of the first quarter of 2020. We considered the economic impacts of the novel coronavirus ("COVID-19") pandemic and the decline in waste volumes from the commercial and industrial sectors to be a triggering event and reviewed the goodwill held at the CES reporting unit. We performed an interim impairment test via a quantitative valuation as of March 31, 2020. As a result, in the first quarter of 2020, we recorded an impairment of $16 million, net of tax benefit of $3 million, which represents the carrying amount of our CES reporting unit in excess of its estimated fair value as of the testing date. For our CES reporting unit, we determined an estimate of the fair value of this reporting unit by combining both the income and market approaches. The market approach was based on current trading multiples of EBITDA for companies operating in businesses similar to our CES reporting unit. In performing the test under the income approach, we utilized a discount rate of 12% and a long-term terminal growth rate of 2.5% beyond our planning period. The assumptions used in evaluating goodwill for impairment are subject to change and are tracked against historical performance. We continued to monitor the CES reporting unit for impairment through the end of 2020, and believe the assumptions utilized were reasonable and commensurate with the views of a market participant. As part of the qualitative assessment, we updated key assumptions, including lowering the discount rate, increasing forecasts for revenue, and the operating margin. The results of the qualitative assessment indicated that it is not more likely than not the fair value of CES reporting unit is less than its carrying amount. For additional information, see Note 1. Organization and Summary of Significant Accounting Policies - Goodwill and Note 12. Intangible Assets and Goodwill. During the year ended December 31, 2018, we identified an indicator of impairment associated with certain of our WtE facilities where the current expectation is that, more likely than not, the assets will not be operated through their previously estimated economic useful life. We performed recoverability tests to determine if these facilities were impaired as of the respective balance sheet date. As a result, based on expected cash flows utilizing Level 3 inputs, we recorded a non-cash impairment charge for the year ended December 31, 2018 of $86 million, to reduce the carrying value of the assets to their estimated fair value. For more information regarding fair value measurements, see Note 14. Financial Instruments . Selected Supplementary Balance Sheet Information Selected supplementary balance sheet information is as follows (in millions): As of December 31, 2020 2019 Prepaid expenses $ 32 $ 27 Other receivable 26 22 Spare parts 23 20 Other 36 36 Total prepaid expenses and other current assets $ 117 $ 105 Operating expenses, payroll and related expenses $ 137 $ 139 Deferred revenue 10 12 Accrued liabilities to client communities 26 16 Interest payable 46 27 Dividends payable 15 38 Insurance premium financing 28 24 Other 41 36 Total accrued expenses and other current liabilities $ 303 $ 292 Geographic Information Our operations are principally located in the U.S. The summary of our operating revenues and total assets by geographic region was as follows (in millions): U.S. Other Total Operating Revenue: Year Ended December 31, 2020 $ 1,832 $ 72 $ 1,904 Year Ended December 31, 2019 $ 1,800 $ 70 $ 1,870 Year Ended December 31, 2018 $ 1,785 $ 83 $ 1,868 U.S. Other Total Total Assets: As of December 31, 2020 $ 3,305 $ 401 $ 3,706 As of December 31, 2019 $ 3,466 $ 249 $ 3,715 As of December 31, 2018 $ 3,635 $ 208 $ 3,843 |
INCOME TAXES (Notes)
INCOME TAXES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
INCOME TAXES | e tax return with our eligible subsidiaries. Our federal consolidated income tax return also includes the taxable results of certain grantor trusts described below. The components of income tax (benefit) expense were as follows (in millions): Year Ended December 31, 2020 2019 2018 Current: Federal $ 2 $ — $ — State (10) 2 1 Foreign — — 1 Total current (8) 2 2 Deferred: Federal (7) (4) (1) State (3) (4) (25) Foreign — (1) (5) Total deferred (10) (9) (31) Total income tax benefit $ (18) $ (7) $ (29) Domestic and foreign pre-tax (loss) income was as follows (in millions): Year Ended December 31, 2020 2019 2018 Domestic $ (55) $ (25) $ (43) Foreign 5 22 160 Total $ (50) $ (3) $ 117 The effective income tax rate was 37%, 264%, and (25)% for the years ended December 31, 2020, 2019 and 2018, respectively. The decrease in the effective tax rate for the year ended December 31, 2020, compared to the year ended December 31, 2019 is primarily due to the to the combined effects of (i) the impact of a smaller gain on the Newhurst and Protos transaction in 2020 compared to gain on the Rookery transaction in 2019, (ii) a discrete tax benefit adjustment in 2020 related to tax carryforwards and (iii) the discrete tax benefit related to the release of State FIN 48 reserve for uncertain tax position. A reconciliation of our income tax (benefit) expense at the federal statutory income tax rate of 21% to our income tax benefit at the effective tax rate is as follows (in millions): Year Ended December 31, 2020 2019 2018 Income tax (benefit) expense at the federal statutory rate $ (10) $ (1) $ 25 State and other tax benefit (2) (1) (1) Tax rate differential on foreign earnings (1) (2) (3) Gain on sale of business (4) (9) (44) Permanent differences 2 4 5 Impact of state apportionment & tax rate 1 (2) (13) Change in valuation allowance 2 1 3 Liability for uncertain tax positions (9) (1) (4) Tax reform transition tax — — 1 Other 3 4 2 Total income tax benefit $ (18) $ (7) $ (29) We had consolidated federal net operating loss carryforwards (“NOLs”) estimated to be approximately $239 million for federal income tax purposes as of December 31, 2020. The majority of these NOLs will expire in 2033 and beyond, if not used. In addition to the consolidated federal NOLs, as of December 31, 2020, we had state NOL carryforwards of approximately $508 million, which expire between 2030 and 2039, net foreign NOL carryforwards of approximately $181 million with some expiring between 2021 and 2039. The federal tax credit carryforwards include production tax credits of $60 million expiring between 2024 and 2040, and research and experimentation tax credits of $1 million expiring between 2027 and 2033. Additionally, we had state income tax credits of $1 million. The tax effects of temporary differences that give rise to the deferred tax assets and liabilities are presented as follows (in millions): As of December 31, 2020 2019 Deferred tax assets: NOLs $ 106 $ 90 Accrued and prepaid expenses 67 63 Tax credits 49 49 Interest expense 14 26 Other 12 8 Total gross deferred tax asset 248 236 Less: valuation allowance (72) (65) Total deferred tax asset 176 171 Deferred tax liabilities: Property, plant and equipment 496 517 Intangible assets 29 17 Other, net 13 9 Total gross deferred tax liability 538 543 Net deferred tax liability $ 362 $ 372 U.S. income taxes were not provided on cumulative undistributed foreign earnings as of December 31, 2020 and 2019. Foreign undistributed earnings were considered permanently invested, therefore no provision for U.S. income taxes was accrued as of December 31, 2020 and 2019. Deferred tax assets relating to employee stock-based compensation deductions were reduced to reflect exercises of non-qualified stock option grants and vesting of restricted stock. Some exercises of non-qualified stock option grants and vesting of restricted stock resulted in tax deductions in excess of previously recorded benefits resulting in a "shortfall". A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Balance at December 31, 2017 $ 48 Additions based on tax positions related to the current year 2 Additions for tax positions of prior years 1 Reductions for lapse in applicable statute of limitations (2) Reductions for tax positions of prior years (8) Balance at December 31, 2018 41 Additions based on tax positions related to the current year 2 Reductions for lapse in applicable statute of limitations (1) Reductions for tax positions of prior years (2) Balance at December 31, 2019 40 Additions based on tax positions related to the current year 2 Reductions for lapse in applicable statute of limitations (7) Balance at December 31, 2020 $ 35 The uncertain tax positions, exclusive of interest and penalties, were $35 million and $40 million as of December 31, 2020 and 2019, respectively, which also represent potential tax benefits that if recognized, would impact the effective tax rate. We record interest accrued on liabilities for uncertain tax positions and penalties as part of the tax provision. As of December 31, 2020 and 2019, we had accrued interest and penalties associated with liabilities for uncertain tax positions of $1 million and $6 million, respectively. Audits for federal income tax returns are closed for the years through 2010. However, the Internal Revenue Service ("IRS") can audit the NOLs generated during those years in the years that the NOLs are utilized. State income tax returns are generally subject to examination for a period of three to six years after the filing of the respective tax return. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. We have various state income tax returns in the process of examination, administrative appeals or litigation. |
ACCOUNTS RECEIVABLE SECURITIZAT
ACCOUNTS RECEIVABLE SECURITIZATION | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE SECURITIZATION | NOTE 10. ACCOUNTS RECEIVABLE SECURITIZATION In December 2020, we amended our existing agreement whereby we regularly sell certain receivables on a revolving basis to third-party financial institutions (the “Purchasers”) from $100 million up to an increased aggregate purchase limit of $120 million. Transfers under the RPA meet the requirements to be accounted for as sales in accordance with the Transfers and Servicing topic of FASB Accounting Standards Codification. We receive a discounted purchase price for each receivable sold under the RPA and will continue to service and administer the subject receivables. The weighted-average discount rate paid on accounts receivable sold was 1.28% for the year ended December 31, 2020. Amounts recognized in connection with the RPA were as follows (in millions): For the Year Ended 2020 2019 Accounts receivable sold and derecognized $ 789 $ 224 Cash proceeds received (1) $ 788 $ 223 Loss on accounts receivable sold (2) $ — $ 2 December 31, 2020 2019 Pledged receivables (3) $ 128 $ 142 (1) Of this amount, $99 million, represented the initial transfer upon commencement of the RPA, which is net of transaction fees and the structuring discount for the year ended December 31, 2019. Furthermore, the additional $20 million, net of transaction fees and the structuring discount, represented incremental transfer upon commencement of the amended RPA for the year ended December 31, 2020. The remainder represented proceeds from collections reinvested in revolving-period transfers. This amount was included in Net cash provided by operating activities on our consolidated statement of cash flows. (2) Recorded in Other operating expense, net on our consolidated statements of operations. Amount included initial transaction costs of $1 million and a guarantee expense of less than $1 million related to the pledged receivables for the year ended December 31, 2019. (3) Secures our obligations under the RPA and provides a guarantee for the prompt payment, not collection, of all payment obligations relating to the sold receivables. We are not required to offer to sell any receivables and the Purchasers are not committed to purchase any receivable offered. The RPA has a scheduled termination date of December 3, 2021 or such later date as agreed in writing with the Purchasers. Additionally, we may terminate the RPA at any time upon 30 days’ prior written notice. The agreement governing the RPA contains certain covenants and termination events. An occurrence of an event of default or the occurrence of a termination event could lead to the termination of the RPA. As of December 31, 2020, we were in compliance with the covenants and no termination events had occurred. As of December 31, 2020, the maximum amount available under the RPA was utilized. |
CREDIT LOSSES (Notes)
CREDIT LOSSES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
CREDIT LOSSES | NOTE 11. CREDIT LOSSES We are exposed to credit losses primarily from our trade receivables from waste disposal services, sale of electricity and/or steam and the sale of ferrous and non-ferrous metals. Changes in the allowance for credit losses of our trade receivables for the year ended December 31, 2020 were as follows (in millions): Balance as of December 31, 2019 $ 9 Provision for expected credit losses 1 Write-offs charged against the allowance (2) Balance as of December 31, 2020 $ 8 The Company held the following shareholder loans in connection with our equity method investments (in millions): December 31, 2020 2019 Included in prepaid expenses and other assets $ 27 $ 22 Included in other assets - long-term 29 15 $ 56 $ 37 We assess the collectability of the shareholder loans each reporting period through the impairment analysis procedures of our equity method investments which considers the loss history of the investments and the viability of the associated development projects. As of December 31, 2020, there were no expected credit losses associated with our shareholder loans. |
EQUITY METHOD INVESTMENTS (Note
EQUITY METHOD INVESTMENTS (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE 13. EQUITY METHOD INVESTMENTS Investments accounted for under the equity method of $188 million and $167 million were included in Other assets in our consolidated balance sheets as of December 31, 2020 and 2019, respectively. Shareholder loans of $29 million and $15 million, respectively, related to our UK and China projects were included in Other assets in our consolidated balance sheets. For additional information on our equity investments in Ireland, the UK and China, see Note 3. New Business and Asset Management. Our ownership percentages in our equity method investments were as follows: December 31, Ownership interest: 2020 2019 Dublin WtE (Ireland) (1) 50 % 50 % Ambiente 2000 S.r.l. (Italy) 40 % 40 % Earls Gate (UK) (2) 25 % 25 % Rookery WtE (UK) (3) 40 % 40 % Newhurst (UK) (4) 25 % — % Protos (UK) (5) 37.5 % — % Zhao County WtE (China) (6) 26 % 26 % (1) We have a 50% indirect ownership of Dublin WtE, through our 50/50 joint venture with GIG, Covanta Europe Assets Ltd. (2) We have a 25% indirect ownership of Earls Gate, through our 50/50 joint venture with GIG, Covanta Green Jersey Assets Ltd., which owns 50% of Earls Gate. (3) We have a 40% indirect ownership of Rookery through our 50/50 joint venture with GIG, Covanta Green. (4) We have a 25% indirect ownership of Newhurst through our 50/50 joint venture with GIG, Covanta Green. (5) We have a 37.5% indirect ownership of Protos through our 50/50 joint venture with GIG, Covanta Green Protos Holding Ltd. (6) We have a 26% interest in Zhao County through our venture with Longking Energy Development Co. Ltd. Summarized financial information of our equity method investments is presented as follows (in millions): For the Year Ended December 31, 2020 2019 2018 Statement of Operations: Operating revenue $ 119 $ 120 $ 112 Operating income $ 26 $ 28 $ 31 Net income $ 8 $ 11 $ 13 As of December 31, 2020 2019 Balance Sheet: Current assets $ 235 $ 180 Long-term assets $ 1,518 $ 1,008 Current liabilities $ 127 $ 104 Long-term liabilities $ 1,212 $ 735 |
FINANCIAL INSTRUMENTS (Notes)
FINANCIAL INSTRUMENTS (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
FINANCIAL INSTRUMENTS | lue 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 December 31, 2020. Such amounts have not been comprehensively revalued for purposes of these financial statements and current estimates of fair value may differ significantly from the amounts presented herein. The following financial instruments are recorded at their estimated fair value. The following table presents information about the recurring fair value measurement of our assets and liabilities as of December 31, 2020 and 2019: As of December 31, Financial Instruments Recorded at Fair Value on a Recurring Basis: Fair Value Measurement Level 2020 2019 (In millions) Assets: Investments — mutual and bond funds (1) 1 $ 2 $ 2 Derivative asset — energy hedges (2) 2 11 12 Total assets: $ 13 $ 14 Liabilities: Derivative liability — interest rate swaps (3) 2 $ 10 $ 2 Total liabilities: $ 10 $ 2 (1) Included in Other assets in the consolidated balance sheets. (2) The short-term balance was included in Prepaid expenses and other current assets and the long-term balance was included in Other assets in the consolidated balance sheets. (3) The short-term balance was included in Accrued expenses and other current liabilities and the long-term balance was included in Other liabilities in the consolidated balance sheets. The following financial instruments were recorded at their carrying amount (in millions): As of December 31, 2020 As of December 31, 2019 Financial Instruments Recorded at Carrying Amount: Carrying Estimated Carrying Estimated Liabilities: Long-term debt $ 2,414 $ 2,492 $ 2,383 $ 2,459 Project debt $ 125 $ 130 $ 133 $ 138 We are required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, accounts receivables, prepaid expenses and other assets, accounts payable and accrued expenses approximates their carrying value on the condensed consolidated balance sheets due to their short-term nature. In addition to the recurring fair value measurements, certain assets are measured at fair value on a non-recurring basis when an indication of impairment is identified. Long-lived assets, such as property and equipment and identifiable intangibles with finite useful lives, are periodically evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purpose of impairment testing, we review the recoverable amount of individual assets or groups of assets at the lowest level of which there are there are identifiable cash flows, which is generally at the facility level. Assets are reviewed using factors including, but not limited to, our future operating plans and projected cash flows. The determination of whether impairment has occurred is based on the fair value of assets as compared to their carrying value. Fair value is generally determined using an income approach, which requires discounting the estimated future cash flows associated with the asset. If the asset carrying amount exceeds its fair value, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. |
DERIVATIVE INSTRUMENTS (Notes)
DERIVATIVE INSTRUMENTS (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
DERIVATIVE INSTRUMENTS | y 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 December 31, 2020 is indicated in the following table (in millions): Calendar Year Hedged MWh 2021 2.1 2022 0.2 Total 2.3 As of December 31, 2020 and December 31, 2019, the fair value of the energy derivative asset was $11 million and $12 million, respectively. The change in fair value was recorded as a component of AOCI. During the year ended December 31, 2020, cash provided by energy derivative settlements of $36 million was included in the change in net cash provided by operating activities on our consolidated statement of cash flows. During the year ended December 31, 2019, cash provided by and used in energy derivative settlements of $18 million and $2 million, respectively, was included in the change in net cash provided by operating activities on our consolidated statement of cash flows. During the year ended December 31, 2018, cash provided by and used in energy derivative settlements of $8 million and $24 million, respectively, was included in the change in net cash provided by operating activities on our consolidated statement of cash flows. Interest Rate Swaps We may utilize derivative instruments to reduce our exposure to fluctuations in cash flows due to changes in variable interest rates paid on our direct borrowings under the senior secured revolving credit facility and the term loan of our subsidiary Covanta Energy (collectively referred to as the "Credit Facilities"). To achieve that objective, we entered into pay-fixed, receive-variable swap agreements on $200 million notional amount of our variable rate debt under the Credit Facilities. The interest rate swaps are designated specifically to the Credit Facilities as a cash flow hedge and are recorded at fair value with changes in fair value recorded as a component of AOCI. For further information on our Credit Facilities, see Note 16. Consolidated Debt . |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2020 | |
OTHER INTANGIBLE ASSETS AND GOODWILL [Abstract] | |
Other Intangible Assets and Goodwill | NOTE 12. INTANGIBLE ASSETS AND GOODWILL Our intangible assets and liabilities are recorded upon acquisition at their estimated fair market values based upon discounted cash flows. Intangible assets and liabilities are amortized using the straight line method over their useful lives. Waste and service contract liabilities, net, were included as a component of Other liabilities on our consolidated balance sheets. Intangible assets consisted of the following (in millions): As of December 31, 2020 As of December 31, 2019 Remaining Weighted Average Useful Life (in years) Gross Accumulated Net Gross Accumulated Net Waste, service and energy contracts 18 $ 447 $ 227 $ 220 $ 447 $ 211 $ 236 Customer relationships, permits and other 5 53 36 17 52 30 22 Intangible assets, net $ 500 $ 263 $ 237 $ 499 $ 241 $ 258 Waste and service contracts (liability) 16 $ (67) $ (62) $ (5) $ (72) $ (66) $ (6) The following table details the amount of amortization expense and contra-expense associated with our intangible assets and liabilities that was included in our consolidated statements of operations for each of the years indicated (in millions): Year Ended December 31, 2020 2019 2018 Intangible assets $ 21 $ 22 $ 20 Waste and service contracts (contra-expense) $ (1) $ (2) $ (2) The following table details the amount of estimated amortization expense associated with our intangible assets and liabilities expected to be included in our consolidated statements of operations for each of the years indicated as of December 31, 2020 (in millions): Year Ended December 31, 2021 2022 2023 2024 2025 Intangible assets $ 20 $ 20 $ 18 $ 15 $ 15 The future contra-expense associated with our intangible assets and liabilities expected to be included in our consolidated statements of operations through December 31, 2025 is not material. The weighted average number of years prior to the next renewal period for contracts that we have an intangible recorded is 7 years. Goodwill The following table details the changes in carrying value of goodwill (in millions): Total Balance at December 31, 2018 $ 321 Goodwill related to acquisitions — Balance at December 31, 2019 321 Impairment charges (1) (19) Balance at December 31, 2020 $ 302 (1) For additional information, see Note 1. Organization and Summary of Significant Accounting Policies - Goodwill and Note 8. Supplementary Information - Impairment Charges. As of December 31, 2020, goodwill of approximately $39 million was deductible for federal income tax purposes. |
CONSOLIDATED DEBT (Notes)
CONSOLIDATED DEBT (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
Consolidated Debt | NOTE 16. CONSOLIDATED DEBT Consolidated debt is as follows (in millions): Average Rate (1) December 31, 2020 December 31, 2019 LONG-TERM DEBT: Revolving credit facility expiring 2023 2.55 % $ 222 $ 183 Term loan, net due 2023 3.15 % 374 384 Credit Facilities Sub-total $ 596 $ 567 Senior Notes due 2025-2030 1,200 1,200 Less: deferred financing costs related to senior notes (16) (14) Senior Notes Sub-total $ 1,184 $ 1,186 Tax-exempt bonds due 2024-2045 $ 544 $ 544 Less: deferred financing costs related to tax-exempt bonds (4) (5) Tax-Exempt Bonds Sub-total $ 540 $ 539 Equipment financing arrangements due 2021 through 2031 78 85 Finance leases (2) 7 6 China venture loan due 2022 (see Note 3) 9 — Total long-term debt $ 2,414 $ 2,383 Less: current portion (18) (17) Noncurrent long-term debt $ 2,396 $ 2,366 PROJECT DEBT: Project debt related to service fee structures $ 45 $ 47 Union County WtE facility finance lease (tip fee structure) 78 84 Unamortized debt premium, net 2 2 Total project debt $ 125 $ 133 Less: Current portion (9) (8) Noncurrent project debt $ 116 $ 125 TOTAL CONSOLIDATED DEBT $ 2,539 $ 2,516 Less: Current debt (27) (25) TOTAL NONCURRENT CONSOLIDATED DEBT $ 2,512 $ 2,491 (1) During the years ended December 31, 2020 and 2019, we entered into interest rate swap agreements to swap to a fixed rate the variable portion of our interest rate expense on $200 million of notional amount of debt under the Credit Facilities. See Note 15. Derivative Instruments for further information. (2) Excludes Union County WtE facility finance lease which is presented within project debt in our consolidated balance sheets. Credit Facility Refinancing In August 2018, our subsidiary, Covanta Energy, refinanced its existing credit facilities with an amended $1.3 billion senior secured credit facilities consisting of a $900 million revolving credit facility expiring August 2023 (the “Revolving Credit Facility”) and a $400 million term loan (the “Term Loan”), (collectively referred to as the "Credit Facilities"). We incurred approximately $7 million in financing costs related to the refinancing which will be deferred and amortized over the five year term of the Credit Facilities. In addition, the remaining unamortized deferred costs of $4 million on the previous credit facilities will also be deferred and amortized over the revised term of 5 years. A portion of the net proceeds of the new Term Loan were used to repay direct borrowings under the previous Revolving Credit Facility and pay transaction fees and expenses. The Revolving Credit Facility is available for the issuance of letters of credit of up to $600 million, provides for a $50 million sub-limit for the issuance of swing line loans (a loan that can be requested in U.S. Dollars on a same day basis for a short drawing period); and is available in U.S. Dollars, Euros, Pounds Sterling, Canadian Dollars and certain other currencies to be agreed upon, in each case for either borrowings or for the issuance of letters of credit. The proceeds under the Revolving Credit Facility are available for working capital and general corporate purposes of Covanta Energy and its subsidiaries. We have the option to establish additional term loan commitments and/or increase the size of the Revolving Credit Facility (collectively, the “Incremental Facilities”), subject to the satisfaction of certain conditions and obtaining sufficient lender commitments, in an amount up to the greater of $500 million and the amount that, after giving effect to the incurrence of such Incremental Facilities, would not result in a leverage ratio, as defined in the credit agreement governing our Credit Facilities (the “Credit Agreement”), exceeding 2.75:1.00. Unutilized Capacity under Revolving Credit Facility As of December 31, 2020, we had unutilized capacity under the Revolving Credit Facility as follows (in millions): Total Expiring Direct Borrowings Outstanding Letters of Credit Unutilized Capacity Revolving Credit Facility $ 900 2023 $ 222 $ 235 $ 443 Repayment Terms As of December 31, 2020, the Term Loan has mandatory principal payments of approximately $10 million in each year through 2022 and a final repayment of $355 million due at maturity in 2023. The Credit Facilities are pre-payable at our option at any time. Interest and Fees Borrowings under the Credit Facilities bear interest, at our option, at either a base rate or a Eurodollar rate plus an applicable margin determined by a pricing grid based on Covanta Energy’s leverage ratio. Base rate is defined as the higher of (i) the Federal Funds Effective Rate plus 0.50%, (ii) the rate the administrative agent announces from time to time as it's per annum “prime rate” or (iii) U.S. Dollar London Interbank Offered Rate (“USD LIBOR”), or a comparable replacement rate, plus 1.00%. Base rate borrowings under the Revolving Credit Facility bear interest at the base rate plus an applicable margin ranging from 0.50% to 1.50%. Eurodollar borrowings under the Revolving Credit Facility bear interest at LIBOR plus an applicable margin ranging from 1.75% to 2.75%. Fees for issuances of letters of credit include fronting fees equal to 0.15% per annum and a participation fee for the lenders equal to the applicable interest margin for USD LIBOR rate borrowings. We will incur an unused commitment fee ranging from 0.30% to 0.50% determined by a pricing grid based on Covanta Energy’s leverage ratio on the unused amount of commitments under the Revolving Credit Facility. Borrowings under the Term Loan bear interest at either (i) the base rate plus an applicable margin ranging from 0.75% to 1.00% or (ii) USD LIBOR plus an applicable margin ranging from 1.75% to 2.00%, in each determined by a pricing grid based on Covanta Energy’s leverage ratio. Guarantees and Securitization The Credit Facilities are guaranteed by us and by certain of our subsidiaries. The subsidiaries that are party to the Credit Facilities agreed to secure all of the obligations under the Credit Facilities by granting, for the benefit of secured parties, a first priority lien on substantially all of their assets, to the extent permitted by existing contractual obligations. The Credit Facilities are also secured by a pledge of substantially all of the capital stock of each of our domestic subsidiaries and 65% of substantially all the capital stock of each of our directly-owned foreign subsidiaries, in each case to the extent not otherwise pledged. Credit Agreement Covenants The loan documentation governing the Credit Facilities contains various affirmative and negative covenants, as well as financial maintenance covenants, that limit our ability to engage in certain types of transactions. We were in compliance with all of the affirmative and negative covenants under the Credit Facilities as of December 31, 2020. The negative covenants of the Credit Facilities limit our and our restricted subsidiaries’ ability to, among other things: • incur additional indebtedness (including guarantee obligations); • create certain liens against or security interests over certain property; • pay dividends on, redeem, or repurchase our capital stock or make other restricted junior payments; • enter into agreements that restrict the ability of our subsidiaries to make distributions or other payments to us; • make investments; • consolidate, merge or transfer all or substantially all of our assets and the assets of our subsidiaries on a consolidated basis; • dispose of certain assets; and • make certain acquisitions. The financial maintenance covenants of the Credit Facilities, which are measured on a trailing four quarter period basis, include the following: • A maximum Leverage Ratio of 4.00 to 1.00 for the trailing four quarter period, which measures the principal amount of Covanta Energy’s consolidated debt less certain restricted funds dedicated to repayment of project debt principal and construction costs (“Consolidated Adjusted Debt”) to its adjusted earnings before interest, taxes, depreciation and amortization, as calculated in the Credit Agreement (“Credit Agreement Adjusted EBITDA”). The definition of Credit Agreement Adjusted EBITDA in the Credit Facilities excludes certain non-recurring and non-cash charges and may incorporate certain pro forma adjustments. • A minimum Interest Coverage Ratio of 3.00 to 1.00, which measures Covanta Energy’s Credit Agreement Adjusted EBITDA to its consolidated interest expense plus certain interest expense of ours, to the extent paid by Covanta Energy as calculated in the Credit Agreement. Senior Notes The table below summarizes our aggregate principal amount of senior unsecured notes, our ("Senior Notes"): Maturity Rate December 31, 2020 December 31, 2019 (In millions) 2030 5.000% $ 400 $ — 2027 6.000% 400 400 2025 5.875% 400 400 2024 5.875% — 400 $ 1,200 $ 1,200 Senior Notes due 2030 (the "2030 Senior Notes") In August 2020, we issued $400 million aggregate principal amount of Senior Notes due 2030. The 2030 Senior Notes bear interest at 5.00% per annum, payable semi-annually on March 1 and September 1 of each year commencing on March 1, 2021, and will mature on September 1, 2030. Net proceeds from the sale of the 2030 Senior Notes were approximately $393 million and were used, along with cash on hand and direct borrowings under our Revolving Credit Facility, to fund the optional redemption of all of our 5.875% Senior Notes due 2024 ("2024 Senior Notes") and to pay transaction fees and expenses and accrued interest. The 2030 Senior Notes are governed by and issued pursuant to the Indenture dated January 18, 2007 between us and Wells Fargo Bank, National Association, as trustee, (the “Base Indenture”) and the Seventh Supplemental Indenture dated as of August 25, 2020. In connection with this issuance, we recognized $7 million of deferred financing costs which will be amortized over the term of the 2030 Senior Notes. During the year ended December 31, 2020, in connection with the redemption of the 2024 Senior Notes, we recorded a Loss on extinguishment of debt of $10 million in our condensed consolidated statements of operations consisting of $8 million of redemption premium and a $2 million write-off of remaining deferred financing costs. Senior Notes due 2027 (the “2027 Senior Notes”) In October 2018, we issued $400 million aggregate principal amount of Senior Notes due 2027. The 2027 Senior Note bear interest at 6.00% per annum, payable semi-annually on January 1 and July 1 of each year, commencing on July 1, 2019. Net proceeds from the sale of the 2027 Senior Notes were approximately $394 million and were used along with cash on hand and/or direct borrowings under our Revolving Credit Facility to fund the optional redemption of all of our 2022 Senior Notes. During the year ended December 31, 2018, as a result of the redemption, we recorded a prepayment charge of $9 million and a write-off of the remaining deferred financing costs of $3 million recognized in our consolidated statements of operations as a Loss on extinguishment of debt. The 2027 Senior Notes are governed by and issued pursuant to the Base Indenture and the Sixth Supplemental Indenture dated as of October 1, 2018. Senior Notes due 2025 (the "2025 Senior Notes") In March 2017, we issued $400 million aggregate principal amount of 5.875% Senior Notes due July 2025. The 2025 Notes bear interest at 5.875% per annum, payable semi-annually on January 1 and July 1 of each year, beginning on July 1, 2017. Net proceeds from the sale of the 2025 Senior Notes were approximately $394 million and were used to fund the redemption of our 2020 Senior Notes. The 2025 Senior Notes are governed by and issued pursuant to the Base Indenture and the Fifth Supplemental Indenture dated March 16, 2017. Senior Notes due 2024 (the "2024 Senior Notes") In March 2014, we issued $400 million aggregate principal amount of 5.875% Senior Notes due March 2024. The 2024 Senior Notes were redeemed in August 2020. Our Senior Notes are: • general unsecured obligations of Covanta and are not guaranteed by any of our subsidiaries; • rank equally in right of payment with all of our existing and future senior unsecured indebtedness that is not subordinated in right of payment to the Senior Notes; • are effectively subordinated in right of payment to any of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; • are structurally subordinated to any existing and future liabilities of any of our subsidiaries, including Covanta Energy, including their guarantees under certain of our Tax-Exempt Bonds; • governed by the Base Indenture as supplemented by the supplemental indentures; • are subject to redemption at our option, in whole or in part, subject to the terms of their respective supplemental indentures; and • are redeemable at our option using the proceeds of certain equity offerings subject to the terms of their respective supplemental indentures. The indentures for our Senior Notes further may limit our ability and the ability of certain of our subsidiaries to: • incur additional indebtedness; • pay dividends or make other distributions or repurchase or redeem their capital stock; • prepay, redeem or repurchase certain debt; • make loans and investments; • sell restricted assets; • incur liens; • enter into transactions with affiliates; • alter the businesses they conduct; • enter into agreements restricting our subsidiaries’ ability to pay dividends; and • consolidate, merge or sell all or substantially all of their assets. Tax-Exempt Bonds Our Tax-Exempt Bonds are summarized in the table below: Series Maturity Coupon December 31, 2020 December 31, 2019 (In millions) New Hampshire Series 2020A 2043 3.625% $ 40 $ — New Hampshire Series 2020B 2045 3.750% 90 — Pennsylvania Series 2019A 2039 3.250% 50 50 New Hampshire Series 2018A 2027 4.000% 20 20 New Hampshire Series 2018B 2042 4.625% 67 67 New Hampshire Series 2018C 2042 4.875% 82 82 New York Series 2018A 2042 4.750% 130 130 New York Series 2018B 2024 3.500% 35 35 Virginia Series 2018A-1 2038 5.000% 30 30 New Jersey Series 2015A 2045 5.250% — 90 Pennsylvania Series 2015A 2043 5.000% — 40 $ 544 $ 544 Each of the respective loan agreements for our Tax-Exempt Bonds contain customary events of default, including failure to make any payments when due, failure to perform its covenants under the respective loan agreement, and our bankruptcy or insolvency. Additionally, each of the loan agreements contains cross-default provisions that relate to our other indebtedness. Upon the occurrence of an event of default, the unpaid balance of the loan under the applicable loan agreement will become due and payable immediately. Our Tax Exempt Bonds also contain certain terms including mandatory redemption requirements in the event that (i) the respective loan agreement is determined to be invalid, or (ii) the respective bonds are determined to be taxable. In the event of a mandatory redemption of the bonds, we will have an obligation under each respective loan agreement to prepay the respective loan in order to fund the redemption. New Hampshire 2020 Tax-Exempt Bonds In August 2020, we entered into a loan agreement with the National Finance Authority ("NFA"), a component unit of the Business Finance Authority of New Hampshire, under which they agreed to issue $39.4 million 3.625% Resource Recovery Refunding Revenue Bonds Series 2020A, maturing on July 1, 2043, and $90 million 3.750% Resource Recovery Refunding Revenue Bonds Series 2020B, maturing on July 1, 2045 (collectively the "New Hampshire 2020 Bonds"). The net proceeds of the New Hampshire 2020 Bonds were used to redeem at par the outstanding principal balance of our previously outstanding New Jersey Series 2015A and Pennsylvania Series 2015A bonds. In connection with the refinancing transaction, we recorded deferred financing costs of $1 million, which are being amortized through July 2, 2040, the mandatory tender date. In addition, during the year ended December 31, 2020, we recorded a $1 million write-off of unamortized issuance costs associated with the previously outstanding debt, which was recognized as a Loss on extinguishment of debt in our condensed consolidated statement of operations. The New Hampshire 2020 Bonds are our senior unsecured obligations and are not guaranteed by any of our subsidiaries. Pennsylvania Tax-Exempt Bonds In August 2019, we entered into a loan agreement with the Pennsylvania Economic Development Financing Authority ("PEDFA") under which they agreed to issue $50 million in aggregate principal amount of tax-exempt Solid Waste Disposal Bonds for the purpose of funding qualified capital expenditures at certain of our facilities in Pennsylvania and paying related costs of issuance (the “Pennsylvania Bonds”). The Pennsylvania Bonds bear interest at a fixed rate of 3.25%, payable on February 1 and August 1 of each year, and have a legal maturity of August 1, 2039. The Pennsylvania Bonds are senior unsecured obligations of Covanta Holding Corporation and are not guaranteed by any of our subsidiaries. New Hampshire and New York 2018 Tax Exempt Bonds In September 2018, we completed a refinancing transaction involving the issuance by the NFA, a component unit of the Business Finance Authority of the State of New Hampshire, of $170 million aggregate principal amount of Resource Recovery Bonds Series 2018A, 2018B and 2018C (the "New Hampshire Series”) and the issuance by the Niagara Area Development Corporation of $165 million aggregate principal amount of Solid Waste Disposal Facility Refunding Revenue Bonds Series 2018A and 2018B (the “New York Series”). The net proceeds of both issuances were loaned to us for the purpose of redeeming the outstanding principal balance of our previously outstanding Massachusetts Development Finance Agency 2012 Series bonds and Niagara Area Development Corporation Series 2012 bonds. In connection with the 2018 refinancing transaction, we recorded deferred financing costs of $3 million, which are being amortized over the term of the New Hampshire and New York Series bonds. In addition, we recorded a $3 million write-off of unamortized issuance costs associated with the previously outstanding debt which was recognized as a Loss on extinguishment of debt in our condensed consolidated statement of operations for the year ended December 31, 2018. The New Hampshire and New York Series 2018 bonds are our senior unsecured obligations and are not guaranteed by any of our subsidiaries. Virginia Tax-Exempt Bonds In June 2018, we completed a financing transaction involving the issuance by the Virginia Small Business Financing Authority (the “VSBFA”) of $30 million in aggregate principal amount of Solid Waste Disposal Bonds due 2038 (the “2018 Virginia Series”). The VSBFA has approved an aggregate principal amount of $50 million for issuance and $20 million remains reserved for potential future issuance at our option. The 2018 Virginia Series bonds are payable semi-annually on January 1 and July 1, of each year, beginning January 1, 2019. The Virginia Series bonds have a legal maturity of January 1, 2048 but, are subject to a mandatory tender for purchase on July 1, 2038. We utilized the net proceeds of the 2018 Virginia Series to fund certain capital expenditures at our facilities in Virginia and paying related costs of issuance. The Virginia Bonds are our senior unsecured obligations and are not guaranteed by any of our subsidiaries. Union County WtE Facility Finance Lease Arrangement In June 2016, we extended the lease term related to the Union County WtE facility through 2053, which resulted in capital lease treatment for the revised lease. We recorded a lease liability of $104 million, calculated utilizing an incremental borrowing rate of 5.0% which was included in long-term project debt on our consolidated balance sheet. The lease includes certain periods of contingent rentals based upon plant performance as either a share of revenue or a share of plant profits. These contingent payments have been excluded from the calculation of the lease liability and instead will be treated as a period expense when incurred. Please see Note 17. Leases for further information. Equipment Financing Arrangements In 2014, we entered into equipment financing arrangements to finance the purchase of barges, railcars, containers and intermodal equipment related to our New York City contract. 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, trailers, containers and barges (the "Equipment") to continue to meet the requirements of the DSNY contract. We commenced investing in the Equipment during 2019 and borrowed $31 million during the year ended December 31, 2019. The borrowings maturity dates range from 2024 and 2031 with fixed interest rates ranging from 3.55% to 4.75%. The outstanding borrowings under the equipment financing arrangements were $78 million as of December 31, 2020, and have mandatory payments remaining as follows (in millions): 2021 2022 2023 2024 2025 Thereafter Future minimum payments $ 7 $ 7 $ 8 $ 7 $ 5 $ 44 Depreciation associated with these assets was included in Depreciation and amortization expense on our consolidated statement of operations. For additional information, see Note 1. Organization and Summary of Significant Accounting Policies - Property, Plant and Equipment . Project Debt The maturities of project debt as of December 31, 2020 are as follows (in millions): 2021 2022 2023 2024 2025 Thereafter Project debt (1) $ 2 $ 2 $ 2 $ 2 $ 3 $ 34 (1) Amounts exclude the Union County WtE facility finance lease discussed above. Project debt associated with the financing of North American WtE facilities is arranged by municipal entities through the issuance of tax-exempt and taxable revenue bonds or other borrowings. For those facilities we own, that project debt is recorded as a liability on our consolidated balance sheets. Generally, debt service for project debt related to Service Fee structures is the primary responsibility of municipal entities, whereas debt service for project debt related to Tip Fee structures is paid by our project subsidiary from project revenue expected to be sufficient to cover such expense. Payment obligations for our project debt associated with WtE facilities are generally limited recourse to the operating subsidiary and non-recourse to us, subject to operating performance guarantees and commitments. These obligations are typically secured by the revenue pledged under the respective indentures and by a mortgage lien and a security interest in the respective WtE facility and related assets. As of December 31, 2020, such revenue bonds were collateralized by property, plant and equipment with a net carrying value of $494 million and restricted funds held in trust of approximately $7 million. Rates on our project debt as of December 31, 2020 were as follows: Minimum Maximum Project debt related to service fee structures due through 2035 5.00 % 5.00 % Project debt related to tip fee structures due through 2053 (1) 5.00 % 5.00 % Financing Costs All deferred financing costs are amortized to interest expense over the life of the related debt using the effective interest method. For each of the years ended December 31, 2020, 2019 and 2018, amortization of deferred financing costs included as a component of interest expense totaled $4 million, $5 million and $5 million, respectively. |
LEASES (Notes)
LEASES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | NOTE 17. LEASES On January 1, 2019, we adopted ASU 2016-02 Leases (Topic 842), also referred to as ASC 842, using the modified retrospective method and recognized a right of use ("ROU") asset and liability in our condensed consolidated balance sheets. 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. We determine if an arrangement contains a lease at inception. Our leases consist of leaseholds on WtE 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. ASC 842 provides that leases with a term of 12 months or less are not recorded on the balance sheet. The guidance also provides practical expedients whereby we have elected to not record a right of use asset or right of use liability for leases with an asset balance that would be considered immaterial. Furthermore, non-lease components are not separated from lease components and instead we account for each separate lease component and non-lease component associated with that lease as a single lease component. We recognize lease expense for these leases on a straight-line basis over the lease term. Our lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. 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): Year Ended December 31, 2020 2019 Finance leases: Amortization of assets, included in Depreciation and amortization expense $ 8 $ 7 Interest on lease liabilities, included in Interest expense 4 4 Operating leases: Amortization of assets, included in Total operating expense 7 8 Interest on lease liabilities, included in Total operating expense 2 2 Total net lease cost $ 21 $ 21 Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): December 31, 2020 December 31, 2019 Operating leases: Operating lease ROU assets, included in Other assets $ 43 $ 46 Current operating lease liabilities, included in Accrued expenses and other current liabilities $ 6 $ 6 Noncurrent operating lease liabilities, included in Other liabilities 43 46 Total operating lease liabilities $ 49 $ 52 Finance leases: Property and equipment, at cost $ 170 $ 168 Accumulated amortization (33) (25) Property and equipment, net $ 137 $ 143 Current obligations of finance leases, included in Current portion of project debt $ 6 $ 6 Finance leases, net of current obligations, included in Project debt 72 78 Current obligations of finance leases, included in Current portion of long-term debt 1 — Finance leases, net of current obligations, included in Long-term debt 6 6 Total finance lease liabilities $ 85 $ 90 Supplemental cash flow and other information related to leases was as follows (in millions): Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 9 $ 10 Financing cash flows related to finance leases $ 7 $ 6 Weighted average remaining lease term (in years): Operating leases 11.4 11.9 Finance leases 31.1 32.3 Weighted average discount rate: Operating leases 4.58 % 4.64 % Finance leases 5.06 % 5.05 % Maturities of lease liabilities were as follows (in millions): December 31, 2020 Operating Leases Finance 2021 $ 9 $ 12 2022 8 12 2023 7 12 2024 7 11 2025 6 13 2026 and thereafter 27 92 Total lease payments 64 152 Less: Amounts representing interest (15) (67) Total lease obligations $ 49 $ 85 Disclosures related to periods prior to the adoption of ASC 842 Rental expense was $23 million for the year ended December 31, 2018. |
LEASES | NOTE 17. LEASES On January 1, 2019, we adopted ASU 2016-02 Leases (Topic 842), also referred to as ASC 842, using the modified retrospective method and recognized a right of use ("ROU") asset and liability in our condensed consolidated balance sheets. 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. We determine if an arrangement contains a lease at inception. Our leases consist of leaseholds on WtE 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. ASC 842 provides that leases with a term of 12 months or less are not recorded on the balance sheet. The guidance also provides practical expedients whereby we have elected to not record a right of use asset or right of use liability for leases with an asset balance that would be considered immaterial. Furthermore, non-lease components are not separated from lease components and instead we account for each separate lease component and non-lease component associated with that lease as a single lease component. We recognize lease expense for these leases on a straight-line basis over the lease term. Our lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. 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): Year Ended December 31, 2020 2019 Finance leases: Amortization of assets, included in Depreciation and amortization expense $ 8 $ 7 Interest on lease liabilities, included in Interest expense 4 4 Operating leases: Amortization of assets, included in Total operating expense 7 8 Interest on lease liabilities, included in Total operating expense 2 2 Total net lease cost $ 21 $ 21 Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): December 31, 2020 December 31, 2019 Operating leases: Operating lease ROU assets, included in Other assets $ 43 $ 46 Current operating lease liabilities, included in Accrued expenses and other current liabilities $ 6 $ 6 Noncurrent operating lease liabilities, included in Other liabilities 43 46 Total operating lease liabilities $ 49 $ 52 Finance leases: Property and equipment, at cost $ 170 $ 168 Accumulated amortization (33) (25) Property and equipment, net $ 137 $ 143 Current obligations of finance leases, included in Current portion of project debt $ 6 $ 6 Finance leases, net of current obligations, included in Project debt 72 78 Current obligations of finance leases, included in Current portion of long-term debt 1 — Finance leases, net of current obligations, included in Long-term debt 6 6 Total finance lease liabilities $ 85 $ 90 Supplemental cash flow and other information related to leases was as follows (in millions): Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 9 $ 10 Financing cash flows related to finance leases $ 7 $ 6 Weighted average remaining lease term (in years): Operating leases 11.4 11.9 Finance leases 31.1 32.3 Weighted average discount rate: Operating leases 4.58 % 4.64 % Finance leases 5.06 % 5.05 % Maturities of lease liabilities were as follows (in millions): December 31, 2020 Operating Leases Finance 2021 $ 9 $ 12 2022 8 12 2023 7 12 2024 7 11 2025 6 13 2026 and thereafter 27 92 Total lease payments 64 152 Less: Amounts representing interest (15) (67) Total lease obligations $ 49 $ 85 Disclosures related to periods prior to the adoption of ASC 842 Rental expense was $23 million for the year ended December 31, 2018. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
COMMITMENTS AND CONTINGENCIES | As of December 31, 2020 and 2019, accruals for our loss contingencies approximated $4 million and $3 million, respectively. Environmental Matters Our operations are subject to environmental regulatory laws and environmental remediation laws. Although our operations are occasionally subject to proceedings and orders pertaining to emissions into the environment and other environmental violations, which may result in fines, penalties, damages or other sanctions, we believe that we are in substantial compliance with existing environmental laws and regulations. We may be identified, along with other entities, as being among parties potentially responsible for contribution to costs associated with the correction and remediation of environmental conditions at disposal sites subject to federal and/or analogous state laws. In certain instances, we may be exposed to joint and several liabilities for remedial action or damages. Our liability in connection with such environmental claims will depend on many factors, including our volumetric share of waste, the total cost of remediation, and the financial viability of other companies that also sent waste to a given site and, in the case of divested operations, the contractual arrangement with the purchaser of such operations. The potential costs related to the matters described below and the possible impact on future operations are uncertain due in part to the complexity of governmental laws and regulations and their interpretations, the varying costs and effectiveness of cleanup technologies, the uncertain level of insurance or other types of recovery and the questionable level of our responsibility. Although the ultimate outcome and expense of any litigation, including environmental remediation, is uncertain, we believe that the following proceedings will not have a material adverse effect on our consolidated results of operations, financial position or cash flows. Lower Passaic River Matter . In August 2004, the U.S. 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. The final settlement for this matter was paid in July 2019. China Indemnification Claims Subsequent to completing the exchange of our project ownership interests in China for a 15% ownership interest in Sanfeng Environment, Sanfeng Environment made certain claims for indemnification under the agreement related to the condition of the facility in Taixing. In February 2018, we made a settlement payment of $7 million related to this claim. Other Commitments Other commitments as of December 31, 2020 were as follows (in millions): Letters of credit issued under the Revolving Credit Facility $ 235 Letters of credit — other 79 Surety bonds 142 Total other commitments — net $ 456 We issue letters of credit to secure our performance under various contractual undertakings related to our domestic and international projects and to secure obligations under our insurance programs. We believe that we will be able to fully perform under our contracts to which these existing letters of credit relate, and that it is unlikely that letters of credit would be drawn because of a default of our performance obligations. If any of these letters of credit were to be drawn by the beneficiary, the amount drawn would be immediately repayable by us to the issuing bank. If we do not immediately repay such amounts drawn under letters of credit issued under the Revolving Credit Facility, unreimbursed amounts would be treated under the Credit Facilities as either additional term loans or as revolving loans. The surety bonds listed in the table above relate primarily to construction and performance obligations and support for other obligations, including closure requirements of various energy projects when such projects cease operating. Were these bonds to be drawn upon, we would have a contractual obligation to indemnify the surety company. The bonds do not have stated expiration dates. Rather, we are released from the bonds as the underlying performance is completed. We have certain contingent obligations related to our Senior Notes and Tax-Exempt Bonds. Holders may require us to repurchase their Senior Notes and Tax-Exempt Bonds if a fundamental change occurs. For specific criteria related to the redemption features of the Senior Notes and Tax-Exempt Bonds, see Note 16. Consolidated Debt . We have issued or are party to guarantees and related contractual support obligations undertaken pursuant to agreements to construct and operate waste and energy facilities. For some projects, such performance guarantees include obligations to repay certain financial obligations if the project revenue is insufficient to do so, or to obtain or guarantee financing for a project. With respect to our businesses, we have issued guarantees to municipal clients and other parties that our subsidiaries will perform in accordance with contractual terms, including, where required, the payment of damages or other obligations. Additionally, damages payable under such guarantees for our WtE 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. |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2020 | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |
Schedule II Valuation and Qualifying Accounts Receivable | Schedule II — Valuation and Qualifying Accounts Receivables Valuation and Qualifying Accounts Additions Description Balance Charged to Charged to Deductions Balance (In millions) Reserves for doubtful accounts: Year ended December 31, 2020 $ 9 $ 1 $ — $ (2) $ 8 Year ended December 31, 2019 $ 8 $ 2 $ — $ (1) $ 9 Year ended December 31, 2018 $ 14 $ 2 $ — $ (8) $ 8 Deferred tax valuation allowance: Year ended December 31, 2020 $ 65 $ 8 $ — $ (1) $ 72 Year ended December 31, 2019 $ 73 $ 4 $ 1 $ (13) $ 65 Year ended December 31, 2018 $ 77 $ 6 $ (4) $ (6) $ 73 |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
Principles of Consolidation | Summary of Significant Accounting Policies The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The following is a description of our significant accounting policies. Principles of Consolidation The consolidated financial statements reflect the results of our operations, cash flows and financial position of our majority-owned or controlled subsidiaries. All intercompany accounts and transactions have been eliminated. |
Equity and Cost Method Investments | Equity and Cost Method Investments Investments in unconsolidated entities over which we have significant influence are accounted for under the equity method of accounting. Under the equity method of accounting, the investment is initially recorded at cost, then our proportional share of the underlying net income or loss is recorded as Equity in net income from unconsolidated investments in our statement of operations with a corresponding increase or decrease to the carrying value of the investment. Distributions received from the investee reduce our carrying value of the investment and are recorded in the consolidated statements of cash flows using the cumulative earnings approach. These investments are evaluated for impairment if events or circumstances arise that indicate that the carrying amount of such assets may not be recoverable. There were no indicators of impairment related to our equity method investments for the years ended December 31, 2020 and 2019. |
Revenue Recognition | Revenue Recognition Our WtE projects generate revenue from three primary sources: 1) fees charged for operating facilities or for receiving waste for disposal (waste and service revenue); 2) the sale of electricity and/or steam (energy revenue); and 3) the sale of ferrous and non-ferrous metals that are recovered from the waste stream as part of the WtE process (recycled metals revenue). We may also generate other operating revenue from the construction, expansion or upgrade of a facility, when a public-sector client owns the facility. Our customers for waste services or facility operations are principally public-sector entities, though we also market disposal capacity at certain facilities to commercial customers. We also operate and/or have ownership positions in environmental services businesses, transfer stations and landfills (primarily for ash disposal) that are ancillary and complementary to our WtE projects and generate additional revenue from disposal or service fees. Revenue is allocated to the performance obligations in a contract on a relative standalone selling price basis. To the extent that we sell the good or service related to the performance obligation separately in the same market, the standalone selling price is the observable price that we sell the good or service separately in similar circumstances and to similar customers. The fees charged for our services are generally defined in our service agreements and vary based on contract-specific terms. Waste and Service Revenue Service Fee Service fee revenue is generated from the operations and maintenance services that we provide to owned and operated WtE facilities. We provide multiple waste disposal services aimed at operating and maintaining the facilities. Service fee revenue is generally based on an expected annual operating fee in relation to annual guaranteed waste processing and excess tonnage fees. The fees charged represent one performance obligation to operate and maintain each facility. Variable consideration primarily consists of fees earned for processing excess tonnage above a minimum specified in the contract. We act as the agent in contracts for the sale of energy and metals in service fee facilities that we operate and accordingly record revenues net for those contracts. Tip Fee Tip fees are generated from the sale of waste disposal services at WtE facilities that we own. We earn a per ton “tipping fee”, generally under long term contractual obligations with our host community and contractual obligations with municipal and commercial waste customers. The tipping fee is generally subject to an annual escalation. The performance obligation in these agreements is to provide waste disposal services for tons of acceptable waste. Revenue is recognized when the waste is delivered to the facility. Energy Sales Typical energy sales consist of: (a) electricity generation, (b) capacity and (c) steam. We primarily sell electricity either to utilities at contracted rates or at prevailing market rates in regional markets and in some cases, sell steam directly to industrial users. We sell a portion of electricity and other energy product outputs pursuant to contracts. As these contracts expire, we intend to sell an increasing portion of the energy output in competitive energy markets or pursuant to short-term contracts. Recycled Metals Revenue Recycled metals revenue represents the sale of recovered ferrous and non-ferrous metals to processors and end-users. The majority of our metals contracts are based on both an unspecified variable unit (i.e. tonnage) and variable forward market price index, while some contracts contain a fixed unit or fixed rate to form the basis of our overall transaction price. We recognize recycled metal revenue when control transfers to the customer. Other Operating Revenue (Construction) |
Plant Operating Expense | Plant Operating ExpensePlant operating expense includes facility employee costs, expense for materials and parts for facility scheduled and unscheduled maintenance and repair expense, which includes costs related to our internal maintenance team and non-facility employee costs. Plant operating expense also includes hauling and disposal expenses, fuel costs, chemicals and reagents, operating lease expense, and other facility operating related expense. |
Pass Through Costs | Pass Through Costs Pass through costs are costs for which we receive a direct contractually committed reimbursement from the public sector client that sponsors an WtE project. These costs generally include utility charges, insurance premiums, ash residue transportation and disposal, and certain chemical costs. These costs are recorded net of public sector client reimbursements as a reduction to Plant operating expense in our consolidated statement of operations. |
Income Taxes | Income Taxes Deferred income taxes are based on the difference between the financial reporting and tax basis of assets and liabilities. The deferred income tax provision represents the change during the reporting period in the deferred tax assets and deferred tax liabilities, net of the effect of acquisitions and dispositions. Deferred tax assets include tax losses and credit carryforwards and are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Share-Based Compensation | Stock-Based CompensationStock-based compensation awards to employees are accounted for as compensation expense based on their grant date fair values. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments having maturities of three months or less from the date of purchase. These short-term investments are stated at cost, which approximates fair value. Balances held by our international subsidiaries are not generally available for near-term liquidity in our domestic operations. |
Restricted Funds Held in Trust | Restricted Funds Held in TrustRestricted funds held in trust are primarily amounts received and held by third party trustees relating to certain projects we own. We generally do not control these accounts and these funds may be used only for specified purposes. These funds include debt service reserves for payment of principal and interest on project debt. Revenue funds are comprised of deposits of revenue received with respect to projects prior to their disbursement. Other funds include escrowed debt proceeds, amounts held in trust for operations, maintenance, environmental obligations, operating lease reserves in accordance with agreements with our clients, and amounts held for future scheduled distributions. Such funds are invested principally in money market funds, bank deposits and U.S. treasury bills. |
Accounts Receivable and Allowance for Doubtful Accounts | Receivables and Allowance for Doubtful Accounts Receivables consist of amounts due to us from normal business activities. Allowances for doubtful accounts are the estimated losses from the inability of customers to make required payments. For our trade receivables, we assess each counterparty’s ability to pay for service by conducting a credit review. The credit review considers the counterparty’s established credit rating or our assessment of the counterparty’s creditworthiness based on our analysis of their financial statements when a credit rating is not available. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. Our activities include timely account reconciliation, dispute resolution, payment confirmation and monitoring current economic conditions and future forecast of economic conditions, to the extent that they impact the credit loss determination and can be reasonably estimated. We regularly sell certain receivables on a revolving basis to third-party financial institutions up to an aggregate purchase limit (the "Receivables Purchase Agreement" or "RPA"). Transfers under the RPA meet the requirements to be accounted for as sales in accordance with the Transfers and Servicing topic of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification. We receive a discounted purchase price for each receivable sold under the RPA and will continue to service and administer the subject receivables. For additional information, see Note 10. Accounts Receivable Securitization. |
Property, Plant and Equipment | Property, Plant and Equipment, net Property, plant, and equipment acquired in business acquisitions is recorded at our estimate of fair value on the date of the acquisition. Additions, improvements and major expenditures are capitalized if they increase the original capacity or extend the remaining useful life of the original asset more than one year. Maintenance repairs and minor expenditures are expensed in the period incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which generally range from three years for computer equipment to 50 years for certain infrastructure components of WtE facilities. Property, plant and equipment at our service fee operated facilities are not recognized on our balance sheet and any additions, improvements and major expenditures for which we are responsible at our service fee operated facilities are expensed in the period incurred. Our leasehold improvements are depreciated over the life of the lease term or the asset life, whichever is shorter. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the consolidated balance sheets and any gain or loss is reflected in the consolidated statements of operations. |
Property, Plant and Equipment, Impairment | Property, plant and equipment is evaluated for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable over their estimated useful life. In reviewing for recoverability, we compare the carrying amount of the relevant assets to their estimated undiscounted future cash flows. When the estimated undiscounted future cash flows are less than the assets carrying amount, the carrying amount is compared to the assets fair value. If the assets fair value is less than the carrying amount an impairment charge is recognized to reduce the assets carrying amount to its fair value. |
Asset Retirement Obligations | We recognize a liability for asset retirement obligations when it is incurred, which is generally upon acquisition, construction, or development. Our liabilities include closure and post-closure costs for landfill cells and site restoration for certain WtE and power producing sites. We principally determine the liability using internal estimates of the costs using current information, assumptions, and interest rates, but also use independent appraisals as appropriate to estimate costs. When a new liability for asset retirement obligation is recorded, we capitalize the cost of the liability by increasing the carrying amount of the related long-lived asset. The liability is accreted to its present value each period and the capitalized cost is depreciated over the useful life of the related asset. We recognize period-to-period changes in the liability resulting from revisions to the timing or the amount of the original estimate of the undiscounted cash flows. |
Intangible Assets and Liabilities | Intangible Assets and LiabilitiesOur waste, service and energy contracts are intangible assets related to long-term operating contracts at acquired facilities. These intangible assets and liabilities and other finite intangible assets, are recorded at their estimated fair market values upon acquisition based primarily upon discounted cash flows in accordance with accounting standards related to business combinations. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets | Intangible assets with finite lives are evaluated for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable over their estimated useful life. In reviewing for recoverability, we compare the carrying amount of the relevant assets to their estimated undiscounted future cash flows. When the estimated undiscounted future cash flows are less than the assets carrying amount, the carrying amount is compared to the assets fair value. If the assets fair value is less than the carrying amount an impairment charge is recognized to reduce the assets carrying amount to its fair value. For the years ended December 31, 2020, 2019 and 2018, we recognized an impairment on our intangible assets of zero, zero and $22 million, respectively. |
Goodwill | GoodwillGoodwill is the excess of our purchase price over the fair value of the net assets of acquired businesses. We do not amortize goodwill, but we assess our goodwill for impairment at least annually. The evaluation of goodwill requires the use of estimates of future cash flows to determine the estimated fair value of the reporting unit. All goodwill is related to our one reportable segment, which is comprised of two reporting units, North America WtE and CES. A reporting unit is defined as an operating segment or a component of an operating segment to the extent discrete financial information is available that is reviewed by segment management which has been determined to be one level below our chief operating decision maker. If the carrying value of the reporting unit exceeds the fair value, an impairment charge is recognized to reduce the carrying value to the fair value. |
Business Combinations | usiness CombinationsWe recognize the assets acquired and liabilities assumed in a business combination at fair value including any noncontrolling interest of the acquired entity; recognize any goodwill acquired; establish the acquisition-date fair value based on the highest and best use by market participants for the asset as the measurement objective; and disclose information needed to evaluate and understand the nature and financial effect of the business combination. We expense transaction costs directly associated to the acquisition as incurred; capitalize in-process research and development costs, if any; and record a liability for contingent consideration at the measurement date with subsequent remeasurement recognized in the results of operations. Any costs for business restructuring and exit activities related to the acquired company are included in the post-combination results of operations. Tax adjustments related to previously recorded business combinations, if any, are recognized in the results of operations. |
Derivative Instruments | Derivative Instruments We recognize derivative instruments on the balance sheet at their fair value. We have entered into swap agreements with various financial institutions to hedge our exposure to energy price risk and interest rate risk. Changes in the fair value of the energy derivatives and the interest rate swap are recognized as a component of AOCI. For additional information, see Note 15. Derivative Instruments |
Foreign Currency Translation | Foreign Currency Translation For foreign operations, assets and liabilities are translated at year-end exchange rates and revenue and expense are translated at the average exchange rates during the year. Unrealized gains and losses resulting from foreign currency translation are included in the consolidated statements of equity as a component of AOCI. Currency transaction gains and losses are recorded in other operating expense in the consolidated statements of operations. |
Pension and Postretirement Benefit Obligations | Defined Contribution Plans Substantially all of our employees in the U.S. are eligible to participate in the defined contribution plans we sponsor. The defined contribution plans allow employees to contribute a portion of their compensation on a pre-tax basis in accordance with specified guidelines. We match a percentage of employee contributions up to certain limits. We also provide a company contribution to the defined contribution plans for eligible employees. Our costs related to defined contribution plans were $20 million, $20 million and $18 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Share Repurchases | Share RepurchasesUnder our share repurchase program, common stock repurchases may be made, from time to time, in the open market, in privately negotiated transactions, or by other available methods, at management’s discretion and in accordance with applicable federal securities laws. The timing and amounts of any repurchases will depend on many factors, including our capital structure, the market price of our common stock and overall market conditions, and whether any restrictions then exist under our policies relating to trading in compliance with securities laws. Purchase price over par value for share repurchases are allocated to additional paid-in capital up to the weighted average amount per share recorded at the time of initial issuance of our common stock, with any excess recorded as a reduction to retained earnings. |
Use of Estimates | Use of Estimates The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts of assets or liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Significant estimates include: useful lives of long-lived assets, asset retirement obligations, construction expense estimates, |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements Recently Adopted In August 2019, the FASB issued Accounting Standards Update (“ASU”) ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this guidance on January 1, 2020 on a prospective basis. The adoption of this guidance did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments and off balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. We adopted this guidance on January 1, 2020 using a modified retrospective approach. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Earnings Per Share | EPS We calculate basic 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. |
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 December 31, 2020. Such amounts have not been comprehensively revalued for purposes of these financial statements and current estimates of fair value may differ significantly from the amounts presented herein. |
Leases | 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. We determine if an arrangement contains a lease at inception. Our leases consist of leaseholds on WtE 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. ASC 842 provides that leases with a term of 12 months or less are not recorded on the balance sheet. The guidance also provides practical expedients whereby we have elected to not record a right of use asset or right of use liability for leases with an asset balance that would be considered immaterial. Furthermore, non-lease components are not separated from lease components and instead we account for each separate lease component and non-lease component associated with that lease as a single lease component. |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Pass through costs were as follows (in millions): Year Ended December 31, 2020 2019 2018 Pass through costs $ 58 $ 57 $ 57 |
Restricted Fund Balances | Restricted fund balances are as follows (in millions): As of December 31, 2020 2019 Current Noncurrent Current Noncurrent Debt service funds - principal $ 2 $ — $ 2 $ — Revenue funds 3 — 3 — Other funds 6 6 13 8 Total $ 11 $ 6 $ 18 $ 8 |
Property, Plant and Equipment | Property, plant and equipment, net consisted of the following (in millions): As of December 31, 2020 2019 Land $ 20 $ 20 Facilities and equipment 4,558 4,463 Landfills (primarily for ash disposal) 80 78 Construction in progress 90 58 Total 4,748 4,619 Less: accumulated depreciation and amortization (2,327) (2,168) Property, plant, and equipment — net $ 2,421 $ 2,451 |
Summary of Asset Retirement Obligation | Our asset retirement obligation is presented as follows (in millions): As of December 31, 2020 2019 Beginning of period asset retirement obligation $ 26 $ 29 Accretion expense (1) 2 2 Liabilities settled (3) (3) Revisions in estimated cash flows 2 — Reclassification to assets held for sale — (2) End of period asset retirement obligation 27 26 Less: current portion (3) (4) Noncurrent asset retirement obligation $ 24 $ 22 (1) Accretion expense was included in Plant operating expense in the consolidated statements of operations. |
AOCI, Net of Income Taxes | The changes in accumulated other comprehensive (loss) income are as follows (in millions): Foreign Currency Translation Pension and Other Postretirement Plan Unrecognized Net Gain Net Unrealized (Loss) Gain on Derivatives Total Balance at December 31, 2018 $ (23) $ 2 $ (12) $ (33) Cumulative effect change in accounting for ASU 2018-02 — 1 — 1 Balance at January 1, 2019 (23) 3 (12) (32) Other comprehensive (loss) income (7) — 4 (3) Balance at December 31, 2019 $ (30) $ 3 $ (8) $ (35) Other comprehensive income (loss) 22 — (19) 3 Balance at December 31, 2020 $ (8) $ 3 $ (27) $ (32) |
EQUITY AND EARNINGS PER SHARE_2
EQUITY AND EARNINGS PER SHARE ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
Basic and Diluted Earnings Per Share Computations and Antidilutive Securities Excluded | Basic and diluted weighted average shares outstanding were as follows (in millions): Year Ended December 31, 2020 2019 2018 Basic weighted average common shares outstanding 132 131 130 Dilutive effect of stock options, restricted stock and restricted stock units — 2 2 Diluted weighted average common shares outstanding 132 133 132 Anti-dilutive stock options, restricted stock and restricted stock units excluded from the calculation of EPS 3 — — |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | December 31, 2020 December 31, 2019 Unbilled receivables $ 23 $ 16 Deferred revenue $ 17 $ 18 |
STOCK-BASED AWARD PLANS (Tables
STOCK-BASED AWARD PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Compensation Expense By Award Type [Text Block] | Stock-based compensation expense is as follows (in millions, except for weighted average years): Total Stock-Based Compensation Expense Unrecognized Weighted-average years to be recognized 2020 2019 2018 As of December 31, 2020 Restricted Stock Units $ 19 $ 17 $ 14 $ 9 1.5 Performance Awards $ 9 $ 6 $ 5 $ 4 1.7 Restricted Stock Awards $ — $ 2 $ 5 $ — 0.2 Stock Options $ 1 $ — $ — $ 2 1.7 Tax benefit related to compensation expense $ 3 $ 5 $ 5 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Changes in nonvested RSUs as of December 31, 2020 were as follows (in thousands, except per share amounts): Number of Shares Weighted-Average Nonvested at the beginning of the year 2,272 $ 15.86 Granted 2,075 $ 10.75 Vested (686) $ 15.80 Forfeited (178) $ 13.58 Nonvested at the end of the year 3,483 $ 12.84 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Monte Carlo valuation assumptions utilized for the TSR awards were: 2020 2019 2018 Expected life (1) 2.81 years 2.82 years 2.82 years Expected stock price volatility (2) 28.06 % 3.28 % 2.63 % Risk-free interest rate (3) 0.56 % 2.48 % 2.38 % Stock price (4) $ 10.95 $ 16.35 $ 14.80 (1) Represents the remaining performance measurement period as of the valuation date. (2) Based on each entity’s historical stock price volatility over the remaining performance measurement period. (3) The risk free rate equals the yield, as of the grant date, on zero coupon U.S. Treasury STRIPS that have a term equal to the length of the remaining performance measurement period. (4) The stock price is the closing price of our common stock on the grant date. The weighted-average assumptions used in the Black-Scholes option pricing model were as follows: 2020 Grants Expected stock price volatility 36.1 % Risk-free interest rate 0.4 % Expected life of options (in years) 5 Expected dividend yield 4.2 % Weighted-average grant date fair value of the options $ 1.54 |
Share-based Payment Arrangement, Performance Shares, Activity [Table Text Block] | Changes in performance awards as of December 31, 2020 were as follows (in thousands, except per share amounts): Number of Shares Weighted-Average Nonvested at the beginning of the year 1,193 $ 16.57 Granted 629 $ 10.89 Vested (410) $ 16.30 Forfeited (22) $ 13.15 Nonvested at the end of the year 1,390 $ 14.13 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Changes in nonvested restricted stock awards as of December 31, 2020 were as follows (in thousands, except per share amounts): Number of Shares Weighted-Average Grant Date Fair Value Nonvested at the beginning of the year 242 $ 16.26 Granted 26 $ 8.41 Vested (235) $ 16.30 Forfeited (3) $ 15.90 Nonvested at the end of the year 30 $ 9.12 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | The following table summarizes activity and balance information of the options under the Plan as of December 31, 2020: Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (1) (in thousands, except per share amounts) Outstanding at the beginning of the year 25 $ 20.58 Granted 2,250 $ 7.62 Exercised — $ — Expired — $ — Forfeited — $ — Outstanding at the end of the year 2,275 $ 7.76 5.8 $ 12,398 Options exercisable at year end 25 $ 20.58 3.5 $ — |
SUPPLEMENTARY INFORMATION (Tabl
SUPPLEMENTARY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
Business Insurance Recoveries [Table Text Block] | We recorded insurance gains, as a reduction to Other operating expense, net in our consolidated statement of operations as follows (in millions): Year Ended December 31, 2020 2019 2018 Insurance gains for property and clean-up costs, net of impairment charges $ 1 $ — $ 18 Insurance gains for business interruption costs, net of costs incurred $ 1 $ 2 $ 19 |
Supplementary Balance Sheet information [Table Text Block] | Selected supplementary balance sheet information is as follows (in millions): As of December 31, 2020 2019 Prepaid expenses $ 32 $ 27 Other receivable 26 22 Spare parts 23 20 Other 36 36 Total prepaid expenses and other current assets $ 117 $ 105 Operating expenses, payroll and related expenses $ 137 $ 139 Deferred revenue 10 12 Accrued liabilities to client communities 26 16 Interest payable 46 27 Dividends payable 15 38 Insurance premium financing 28 24 Other 41 36 Total accrued expenses and other current liabilities $ 303 $ 292 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | summary of our operating revenues and total assets by geographic region was as follows (in millions): U.S. Other Total Operating Revenue: Year Ended December 31, 2020 $ 1,832 $ 72 $ 1,904 Year Ended December 31, 2019 $ 1,800 $ 70 $ 1,870 Year Ended December 31, 2018 $ 1,785 $ 83 $ 1,868 U.S. Other Total Total Assets: As of December 31, 2020 $ 3,305 $ 401 $ 3,706 As of December 31, 2019 $ 3,466 $ 249 $ 3,715 As of December 31, 2018 $ 3,635 $ 208 $ 3,843 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income tax (benefit) expense were as follows (in millions): Year Ended December 31, 2020 2019 2018 Current: Federal $ 2 $ — $ — State (10) 2 1 Foreign — — 1 Total current (8) 2 2 Deferred: Federal (7) (4) (1) State (3) (4) (25) Foreign — (1) (5) Total deferred (10) (9) (31) Total income tax benefit $ (18) $ (7) $ (29) |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Domestic and foreign pre-tax (loss) income was as follows (in millions): Year Ended December 31, 2020 2019 2018 Domestic $ (55) $ (25) $ (43) Foreign 5 22 160 Total $ (50) $ (3) $ 117 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of our income tax (benefit) expense at the federal statutory income tax rate of 21% to our income tax benefit at the effective tax rate is as follows (in millions): Year Ended December 31, 2020 2019 2018 Income tax (benefit) expense at the federal statutory rate $ (10) $ (1) $ 25 State and other tax benefit (2) (1) (1) Tax rate differential on foreign earnings (1) (2) (3) Gain on sale of business (4) (9) (44) Permanent differences 2 4 5 Impact of state apportionment & tax rate 1 (2) (13) Change in valuation allowance 2 1 3 Liability for uncertain tax positions (9) (1) (4) Tax reform transition tax — — 1 Other 3 4 2 Total income tax benefit $ (18) $ (7) $ (29) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences that give rise to the deferred tax assets and liabilities are presented as follows (in millions): As of December 31, 2020 2019 Deferred tax assets: NOLs $ 106 $ 90 Accrued and prepaid expenses 67 63 Tax credits 49 49 Interest expense 14 26 Other 12 8 Total gross deferred tax asset 248 236 Less: valuation allowance (72) (65) Total deferred tax asset 176 171 Deferred tax liabilities: Property, plant and equipment 496 517 Intangible assets 29 17 Other, net 13 9 Total gross deferred tax liability 538 543 Net deferred tax liability $ 362 $ 372 |
Reconciliation Of Beginning And Ending Amounts Of Unrecognized Tax Benefits [Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): Balance at December 31, 2017 $ 48 Additions based on tax positions related to the current year 2 Additions for tax positions of prior years 1 Reductions for lapse in applicable statute of limitations (2) Reductions for tax positions of prior years (8) Balance at December 31, 2018 41 Additions based on tax positions related to the current year 2 Reductions for lapse in applicable statute of limitations (1) Reductions for tax positions of prior years (2) Balance at December 31, 2019 40 Additions based on tax positions related to the current year 2 Reductions for lapse in applicable statute of limitations (7) Balance at December 31, 2020 $ 35 |
ACCOUNTS RECEIVABLE SECURITIZ_2
ACCOUNTS RECEIVABLE SECURITIZATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Amounts recognized in connection with the RPA were as follows (in millions): For the Year Ended 2020 2019 Accounts receivable sold and derecognized $ 789 $ 224 Cash proceeds received (1) $ 788 $ 223 Loss on accounts receivable sold (2) $ — $ 2 December 31, 2020 2019 Pledged receivables (3) $ 128 $ 142 (1) Of this amount, $99 million, represented the initial transfer upon commencement of the RPA, which is net of transaction fees and the structuring discount for the year ended December 31, 2019. Furthermore, the additional $20 million, net of transaction fees and the structuring discount, represented incremental transfer upon commencement of the amended RPA for the year ended December 31, 2020. The remainder represented proceeds from collections reinvested in revolving-period transfers. This amount was included in Net cash provided by operating activities on our consolidated statement of cash flows. (2) Recorded in Other operating expense, net on our consolidated statements of operations. Amount included initial transaction costs of $1 million and a guarantee expense of less than $1 million related to the pledged receivables for the year ended December 31, 2019. |
CREDIT LOSSES (Tables)
CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Schedule of Changes in Allowance fr Credit Loss | Changes in the allowance for credit losses of our trade receivables for the year ended December 31, 2020 were as follows (in millions): Balance as of December 31, 2019 $ 9 Provision for expected credit losses 1 Write-offs charged against the allowance (2) Balance as of December 31, 2020 $ 8 |
Schedule of Shareholder Loans | The Company held the following shareholder loans in connection with our equity method investments (in millions): December 31, 2020 2019 Included in prepaid expenses and other assets $ 27 $ 22 Included in other assets - long-term 29 15 $ 56 $ 37 |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Our ownership percentages in our equity method investments were as follows: December 31, Ownership interest: 2020 2019 Dublin WtE (Ireland) (1) 50 % 50 % Ambiente 2000 S.r.l. (Italy) 40 % 40 % Earls Gate (UK) (2) 25 % 25 % Rookery WtE (UK) (3) 40 % 40 % Newhurst (UK) (4) 25 % — % Protos (UK) (5) 37.5 % — % Zhao County WtE (China) (6) 26 % 26 % (1) We have a 50% indirect ownership of Dublin WtE, through our 50/50 joint venture with GIG, Covanta Europe Assets Ltd. (2) We have a 25% indirect ownership of Earls Gate, through our 50/50 joint venture with GIG, Covanta Green Jersey Assets Ltd., which owns 50% of Earls Gate. (3) We have a 40% indirect ownership of Rookery through our 50/50 joint venture with GIG, Covanta Green. (4) We have a 25% indirect ownership of Newhurst through our 50/50 joint venture with GIG, Covanta Green. (5) We have a 37.5% indirect ownership of Protos through our 50/50 joint venture with GIG, Covanta Green Protos Holding Ltd. (6) We have a 26% interest in Zhao County through our venture with Longking Energy Development Co. Ltd. Summarized financial information of our equity method investments is presented as follows (in millions): For the Year Ended December 31, 2020 2019 2018 Statement of Operations: Operating revenue $ 119 $ 120 $ 112 Operating income $ 26 $ 28 $ 31 Net income $ 8 $ 11 $ 13 As of December 31, 2020 2019 Balance Sheet: Current assets $ 235 $ 180 Long-term assets $ 1,518 $ 1,008 Current liabilities $ 127 $ 104 Long-term liabilities $ 1,212 $ 735 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
Fair Value Measurement of Assets and Liabilities | The following financial instruments are recorded at their estimated fair value. The following table presents information about the recurring fair value measurement of our assets and liabilities as of December 31, 2020 and 2019: As of December 31, Financial Instruments Recorded at Fair Value on a Recurring Basis: Fair Value Measurement Level 2020 2019 (In millions) Assets: Investments — mutual and bond funds (1) 1 $ 2 $ 2 Derivative asset — energy hedges (2) 2 11 12 Total assets: $ 13 $ 14 Liabilities: Derivative liability — interest rate swaps (3) 2 $ 10 $ 2 Total liabilities: $ 10 $ 2 (1) Included in Other assets in the consolidated balance sheets. (2) The short-term balance was included in Prepaid expenses and other current assets and the long-term balance was included in Other assets in the consolidated balance sheets. (3) The short-term balance was included in Accrued expenses and other current liabilities and the long-term balance was included in Other liabilities in the consolidated balance sheets. The following financial instruments were recorded at their carrying amount (in millions): As of December 31, 2020 As of December 31, 2019 Financial Instruments Recorded at Carrying Amount: Carrying Estimated Carrying Estimated Liabilities: Long-term debt $ 2,414 $ 2,492 $ 2,383 $ 2,459 Project debt $ 125 $ 130 $ 133 $ 138 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | Calendar Year Hedged MWh 2021 2.1 2022 0.2 Total 2.3 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER INTANGIBLE ASSETS AND GOODWILL [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of December 31, 2020 As of December 31, 2019 Remaining Weighted Average Useful Life (in years) Gross Accumulated Net Gross Accumulated Net Waste, service and energy contracts 18 $ 447 $ 227 $ 220 $ 447 $ 211 $ 236 Customer relationships, permits and other 5 53 36 17 52 30 22 Intangible assets, net $ 500 $ 263 $ 237 $ 499 $ 241 $ 258 Waste and service contracts (liability) 16 $ (67) $ (62) $ (5) $ (72) $ (66) $ (6) |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | The following table details the amount of amortization expense and contra-expense associated with our intangible assets and liabilities that was included in our consolidated statements of operations for each of the years indicated (in millions): Year Ended December 31, 2020 2019 2018 Intangible assets $ 21 $ 22 $ 20 Waste and service contracts (contra-expense) $ (1) $ (2) $ (2) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The following table details the amount of estimated amortization expense associated with our intangible assets and liabilities expected to be included in our consolidated statements of operations for each of the years indicated as of December 31, 2020 (in millions): Year Ended December 31, 2021 2022 2023 2024 2025 Intangible assets $ 20 $ 20 $ 18 $ 15 $ 15 |
Schedule of Goodwill [Table Text Block] | Goodwill The following table details the changes in carrying value of goodwill (in millions): Total Balance at December 31, 2018 $ 321 Goodwill related to acquisitions — Balance at December 31, 2019 321 Impairment charges (1) (19) Balance at December 31, 2020 $ 302 (1) For additional information, see Note 1. Organization and Summary of Significant Accounting Policies - Goodwill and Note 8. Supplementary Information - Impairment Charges. |
CONSOLIDATED DEBT (Tables)
CONSOLIDATED DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instrument [Line Items] | |
Consolidated Debt | Consolidated debt is as follows (in millions): Average Rate (1) December 31, 2020 December 31, 2019 LONG-TERM DEBT: Revolving credit facility expiring 2023 2.55 % $ 222 $ 183 Term loan, net due 2023 3.15 % 374 384 Credit Facilities Sub-total $ 596 $ 567 Senior Notes due 2025-2030 1,200 1,200 Less: deferred financing costs related to senior notes (16) (14) Senior Notes Sub-total $ 1,184 $ 1,186 Tax-exempt bonds due 2024-2045 $ 544 $ 544 Less: deferred financing costs related to tax-exempt bonds (4) (5) Tax-Exempt Bonds Sub-total $ 540 $ 539 Equipment financing arrangements due 2021 through 2031 78 85 Finance leases (2) 7 6 China venture loan due 2022 (see Note 3) 9 — Total long-term debt $ 2,414 $ 2,383 Less: current portion (18) (17) Noncurrent long-term debt $ 2,396 $ 2,366 PROJECT DEBT: Project debt related to service fee structures $ 45 $ 47 Union County WtE facility finance lease (tip fee structure) 78 84 Unamortized debt premium, net 2 2 Total project debt $ 125 $ 133 Less: Current portion (9) (8) Noncurrent project debt $ 116 $ 125 TOTAL CONSOLIDATED DEBT $ 2,539 $ 2,516 Less: Current debt (27) (25) TOTAL NONCURRENT CONSOLIDATED DEBT $ 2,512 $ 2,491 (1) During the years ended December 31, 2020 and 2019, we entered into interest rate swap agreements to swap to a fixed rate the variable portion of our interest rate expense on $200 million of notional amount of debt under the Credit Facilities. See Note 15. Derivative Instruments for further information. (2) Excludes Union County WtE facility finance lease which is presented within project debt in our consolidated balance sheets. |
Available Credit for Liquidity | As of December 31, 2020, we had unutilized capacity under the Revolving Credit Facility as follows (in millions): |
Schedule of Tax Exempt Bonds [Table Text Block] | Our Tax-Exempt Bonds are summarized in the table below: Series Maturity Coupon December 31, 2020 December 31, 2019 (In millions) New Hampshire Series 2020A 2043 3.625% $ 40 $ — New Hampshire Series 2020B 2045 3.750% 90 — Pennsylvania Series 2019A 2039 3.250% 50 50 New Hampshire Series 2018A 2027 4.000% 20 20 New Hampshire Series 2018B 2042 4.625% 67 67 New Hampshire Series 2018C 2042 4.875% 82 82 New York Series 2018A 2042 4.750% 130 130 New York Series 2018B 2024 3.500% 35 35 Virginia Series 2018A-1 2038 5.000% 30 30 New Jersey Series 2015A 2045 5.250% — 90 Pennsylvania Series 2015A 2043 5.000% — 40 $ 544 $ 544 |
Contractual Obligation, Fiscal Year Maturity | The outstanding borrowings under the equipment financing arrangements were $78 million as of December 31, 2020, and have mandatory payments remaining as follows (in millions): 2021 2022 2023 2024 2025 Thereafter Future minimum payments $ 7 $ 7 $ 8 $ 7 $ 5 $ 44 The maturities of project debt as of December 31, 2020 are as follows (in millions): 2021 2022 2023 2024 2025 Thereafter Project debt (1) $ 2 $ 2 $ 2 $ 2 $ 3 $ 34 (1) Amounts exclude the Union County WtE facility finance lease discussed above. |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Consolidated Debt | The table below summarizes our aggregate principal amount of senior unsecured notes, our ("Senior Notes"): Maturity Rate December 31, 2020 December 31, 2019 (In millions) 2030 5.000% $ 400 $ — 2027 6.000% 400 400 2025 5.875% 400 400 2024 5.875% — 400 $ 1,200 $ 1,200 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense were as follows (in millions): Year Ended December 31, 2020 2019 Finance leases: Amortization of assets, included in Depreciation and amortization expense $ 8 $ 7 Interest on lease liabilities, included in Interest expense 4 4 Operating leases: Amortization of assets, included in Total operating expense 7 8 Interest on lease liabilities, included in Total operating expense 2 2 Total net lease cost $ 21 $ 21 Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): December 31, 2020 December 31, 2019 Operating leases: Operating lease ROU assets, included in Other assets $ 43 $ 46 Current operating lease liabilities, included in Accrued expenses and other current liabilities $ 6 $ 6 Noncurrent operating lease liabilities, included in Other liabilities 43 46 Total operating lease liabilities $ 49 $ 52 Finance leases: Property and equipment, at cost $ 170 $ 168 Accumulated amortization (33) (25) Property and equipment, net $ 137 $ 143 Current obligations of finance leases, included in Current portion of project debt $ 6 $ 6 Finance leases, net of current obligations, included in Project debt 72 78 Current obligations of finance leases, included in Current portion of long-term debt 1 — Finance leases, net of current obligations, included in Long-term debt 6 6 Total finance lease liabilities $ 85 $ 90 Supplemental cash flow and other information related to leases was as follows (in millions): Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 9 $ 10 Financing cash flows related to finance leases $ 7 $ 6 Weighted average remaining lease term (in years): Operating leases 11.4 11.9 Finance leases 31.1 32.3 Weighted average discount rate: Operating leases 4.58 % 4.64 % Finance leases 5.06 % 5.05 % |
Finance Lease, Liability, Maturity | Maturities of lease liabilities were as follows (in millions): December 31, 2020 Operating Leases Finance 2021 $ 9 $ 12 2022 8 12 2023 7 12 2024 7 11 2025 6 13 2026 and thereafter 27 92 Total lease payments 64 152 Less: Amounts representing interest (15) (67) Total lease obligations $ 49 $ 85 |
Operating Lease, Liability, Maturity | Maturities of lease liabilities were as follows (in millions): December 31, 2020 Operating Leases Finance 2021 $ 9 $ 12 2022 8 12 2023 7 12 2024 7 11 2025 6 13 2026 and thereafter 27 92 Total lease payments 64 152 Less: Amounts representing interest (15) (67) Total lease obligations $ 49 $ 85 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements [Abstract] | |
Other Commitments | Other commitments as of December 31, 2020 were as follows (in millions): Letters of credit issued under the Revolving Credit Facility $ 235 Letters of credit — other 79 Surety bonds 142 Total other commitments — net $ 456 |
SCHEDULE II VALUATION AND QUA_2
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |
Summary of Valuation Allowance | Additions Description Balance Charged to Charged to Deductions Balance (In millions) Reserves for doubtful accounts: Year ended December 31, 2020 $ 9 $ 1 $ — $ (2) $ 8 Year ended December 31, 2019 $ 8 $ 2 $ — $ (1) $ 9 Year ended December 31, 2018 $ 14 $ 2 $ — $ (8) $ 8 Deferred tax valuation allowance: Year ended December 31, 2020 $ 65 $ 8 $ — $ (1) $ 72 Year ended December 31, 2019 $ 73 $ 4 $ 1 $ (13) $ 65 Year ended December 31, 2018 $ 77 $ 6 $ (4) $ (6) $ 73 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Details) T in Millions, MW in Millions, $ in Millions | Oct. 01, 2019report | Dec. 31, 2020USD ($)MWTFacilityreportlandfillSegmentstationshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Stock Repurchased During Period, Shares | shares | 0 | 0 | 0 | ||
Right of use assets | $ 43 | $ 46 | |||
Operating lease liability | 49 | 52 | |||
Impairment of Long-Lived Assets to be Disposed of | 0 | 2 | $ 63 | ||
Cost of Goods and Services Sold | 1,420 | 1,371 | 1,321 | ||
Impairment of Intangible Assets, Finite-lived | 0 | 0 | 22 | ||
Intangible Assets, Net (Excluding Goodwill) | 237 | 258 | |||
Cash and cash equivalents | 55 | 37 | 58 | ||
Net Cash Provided by (Used in) Operating Activities | 254 | 226 | 238 | ||
Defined Contribution Plan, Cost | $ 20 | 20 | 18 | ||
Organization (additional details) [Abstract] | |||||
Number of Operate and/or ownership positions in energy generation facilities | Facility | 41 | ||||
Annual processing capacity | T | 21 | ||||
Percent of municipal solid waste processed | 8.00% | ||||
Annual generation capacity of megawatt hours | MW | 10 | ||||
Number of waste transfer stations | station | 13 | ||||
Number of materials processing facilities | Facility | 20 | ||||
Number of landfills | landfill | 4 | ||||
Number of metals processing facilities | Facility | 1 | ||||
Number of reportable segments | Segment | 1 | ||||
Restricted Funds Held in Trust [Abstract] | |||||
Restricted funds held in trust | $ 11 | 18 | 39 | ||
Restricted funds held in trust, noncurrent | 6 | 8 | 8 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | 63 | 105 | $ 194 | ||
Deferred Revenue [Abstract] | |||||
Deferred Revenue, Current | 10 | 12 | |||
Property, Plant and Equipment [Abstract] | |||||
Land | 20 | 20 | |||
Facilities And Equipment Gross | 4,558 | 4,463 | |||
Landfill Gross | 80 | 78 | |||
Construction in Progress, Gross | 90 | 58 | |||
Property, Plant and Equipment, Gross | 4,748 | 4,619 | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (2,327) | (2,168) | |||
Property, plant and equipment, net | 2,421 | 2,451 | |||
Depreciation | 204 | 201 | 199 | ||
Capital Expenditures Incurred but Not yet Paid | 13 | 6 | 37 | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||
Beginning of period asset retirement obligation | 26 | 29 | |||
Accretion expense | 2 | 2 | |||
Liabilities settled | (3) | (3) | |||
Revisions in estimated cash flows | 2 | 0 | |||
Reclassification to assets held for sale | 0 | (2) | |||
End of period asset retirement obligation | 27 | 26 | 29 | ||
Less: current portion | (3) | (4) | |||
Noncurrent asset retirement obligation | 24 | 22 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive (loss) income | (32) | (35) | (33) | ||
Other Comprehensive Income (Loss), Net of Tax | 3 | (3) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 22 | (7) | 1 | ||
Net gain on sale of business and investments | 26 | 49 | 217 | ||
(Loss) income before income tax benefit and equity in net income from unconsolidated investments | (50) | (3) | 117 | ||
Accounting Changes [Abstract] | |||||
Retained Earnings (Accumulated Deficit) | (554) | (460) | |||
Income Tax Expense (Benefit) | (18) | (7) | (29) | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (28) | 10 | 152 | ||
Net Cash Provided by (Used in) Investing Activities | (176) | (145) | (139) | ||
Net Cash Provided by (Used in) Financing Activities | (71) | (122) | (189) | ||
Goodwill | $ 302 | 321 | 321 | ||
Number of Reporting Units | report | 2 | 2 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive (loss) income | 1 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive (loss) income | (32) | ||||
North America [Member] | |||||
Organization (additional details) [Abstract] | |||||
Number of Operate and/or ownership positions in energy generation facilities | Facility | 39 | ||||
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive (loss) income | $ (8) | (30) | (23) | ||
Other Comprehensive Income (Loss), Net of Tax | 22 | (7) | |||
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive (loss) income | 0 | ||||
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive (loss) income | (23) | ||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive (loss) income | 3 | 3 | 2 | ||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | |||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive (loss) income | 1 | ||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive (loss) income | 3 | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive (loss) income | (27) | (8) | (12) | ||
Other Comprehensive Income (Loss), Net of Tax | $ (19) | 4 | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive (loss) income | 0 | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Accumulated other comprehensive (loss) income | (12) | ||||
Minimum [Member] | Computer Equipment [Member] | |||||
Property, Plant and Equipment [Abstract] | |||||
Original useful lives for equipment | 3 years | ||||
Maximum [Member] | Equipment [Member] | |||||
Property, Plant and Equipment [Abstract] | |||||
Original useful lives for equipment | 50 years | ||||
Pass through costs [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Cost of Goods and Services Sold | $ 58 | $ 57 | $ 57 | ||
CES | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 5.00% | ||||
Accounting Changes [Abstract] | |||||
Goodwill | $ 46 | ||||
Measurement Input, Discount Rate [Member] | |||||
Accounting Changes [Abstract] | |||||
Goodwill, Measurement Input | 12.00% | ||||
Long Term Terminal Growth Rate [Member] | |||||
Accounting Changes [Abstract] | |||||
Goodwill, Measurement Input | 2.50% | ||||
Other Funds [Member] | |||||
Restricted Funds Held in Trust [Abstract] | |||||
Restricted funds held in trust | $ 6 | 13 | |||
Restricted funds held in trust, noncurrent | 6 | 8 | |||
Revenue Funds [Member] | |||||
Restricted Funds Held in Trust [Abstract] | |||||
Restricted funds held in trust | 3 | 3 | |||
Restricted funds held in trust, noncurrent | 0 | 0 | |||
Debt Service Funds [Member] | Principal Amount [Member] | |||||
Restricted Funds Held in Trust [Abstract] | |||||
Restricted funds held in trust | 2 | 2 | |||
Restricted funds held in trust, noncurrent | $ 0 | $ 0 |
New Business and Asset Manage_2
New Business and Asset Management (Details) ¥ in Millions, £ in Millions, $ in Millions | Feb. 12, 2018USD ($) | Jan. 31, 2020USD ($) | Jan. 31, 2020CNY (¥) | Sep. 30, 2018USD ($) | Dec. 31, 2020USD ($)MWhT | Dec. 31, 2020GBP (£) | Dec. 31, 2019USD ($)T | Dec. 31, 2018USD ($)MWhT | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥)MWhT | Dec. 31, 2020GBP (£)MWhT | Feb. 29, 2020USD ($)MWhT | Feb. 29, 2020GBP (£)MWhT |
Business Acquisition [Line Items] | ||||||||||||||
Equity method investments | $ 188 | $ 167 | ||||||||||||
Other receivable | $ 26 | 22 | ||||||||||||
Percentage of ownership before transaction | 15.00% | 15.00% | ||||||||||||
Payments to acquire businesses | $ 0 | $ (2) | $ 50 | |||||||||||
Palm Beach Resource Recovery Corporation | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Payments to acquire businesses | $ 46 | |||||||||||||
Zhao County EfW (China) | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, weight | T | 396,000 | |||||||||||||
Equity method investment, ownership percentage | 26.00% | 26.00% | 26.00% | 26.00% | ||||||||||
Proceeds from loan | $ 9 | ¥ 61 | ||||||||||||
Estimated project cost | $ 93 | ¥ 650 | ||||||||||||
Project costs financed through debt | $ 75 | ¥ 488 | ||||||||||||
Zhao County EfW (China) | Forecast | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investments | $ 9 | ¥ 61 | ||||||||||||
Equity method investment, ownership percentage | 49.00% | 49.00% | ||||||||||||
Protos Energy Recovery Facility | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, weight | T | 400,000 | 400,000 | 400,000 | |||||||||||
Equity method investments | $ 19 | £ 14 | ||||||||||||
Equity method investment, ownership percentage | 37.50% | 0.00% | 37.50% | 37.50% | ||||||||||
Equity method investment, energy output | MWh | 49 | 49 | 49 | |||||||||||
Equity method investment, waste processing capacity | 60.00% | 60.00% | 60.00% | |||||||||||
Gain (loss) on sale of equity investments | $ 17 | £ 13 | ||||||||||||
Protos Energy Recovery Facility | Green Investment Group Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Right to invest | 37.50% | 37.50% | 37.50% | |||||||||||
Protos Energy Recovery Facility | Joint Venture with Green Investment Group Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 75.00% | 75.00% | 75.00% | |||||||||||
Protos Energy Recovery Facility | Biffa plc | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 25.00% | 25.00% | 25.00% | |||||||||||
Newhurst Energy Recovery Facility | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, weight | T | 350,000 | 350,000 | ||||||||||||
Equity method investments | $ 8 | £ 5 | ||||||||||||
Equity method investment, ownership percentage | 25.00% | 0.00% | 25.00% | 25.00% | ||||||||||
Equity method investment, energy output | MWh | 42 | 42 | ||||||||||||
Equity method investment, waste processing capacity | 70.00% | 70.00% | ||||||||||||
Gain (loss) on sale of equity investments | $ 9 | £ 7 | ||||||||||||
Newhurst Energy Recovery Facility | Green Investment Group Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Right to invest | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |||||||||
Newhurst Energy Recovery Facility | Joint Venture with Green Investment Group Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||||||||||||
Newhurst Energy Recovery Facility | Biffa plc | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||||||||||||
Rookery EfW (UK) | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, weight | T | 545,000 | 545,000 | 545,000 | |||||||||||
Equity method investments | $ 44 | £ 34 | ||||||||||||
Equity method investment, ownership percentage | 40.00% | 40.00% | 40.00% | 40.00% | ||||||||||
Equity method investment, energy output | MWh | 60 | 60 | 60 | |||||||||||
Gain (loss) on sale of equity investments | $ 57 | |||||||||||||
Rookery EfW (UK) | Green Investment Group Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 80.00% | 80.00% | 80.00% | |||||||||||
Right to invest | 40.00% | 40.00% | 40.00% | |||||||||||
Rookery EfW (UK) | Veolia ES Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 20.00% | 20.00% | 20.00% | |||||||||||
Equity method investment, waste processing capacity | 70.00% | 70.00% | 70.00% | |||||||||||
Dublin EfW (Ireland) | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, weight | T | 600,000 | |||||||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | ||||||||||
Equity method investment, energy output | MWh | 58 | |||||||||||||
Percentage of ownership before transaction | 100.00% | |||||||||||||
Proceeds from divestiture of interest in subsidiaries and affiliates | $ 167 | |||||||||||||
Proceeds from divestiture of interest in consolidated subsidiaries | $ 98 | |||||||||||||
Deconsolidation, revaluation of retained investment | $ 204 | |||||||||||||
Covanta Green | Green Investment Group Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investments | $ 4 | |||||||||||||
Right to invest | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |||||||||
Covanta Green Protos Holding | Green Investment Group Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investments | $ 6 | |||||||||||||
Right to invest | 50.00% | 50.00% | 50.00% | |||||||||||
Covanta Europe Assets, Ltd | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investments | $ 153 | 143 | ||||||||||||
Equity method investment, ownership percentage | 50.00% | |||||||||||||
Covanta Europe Assets, Ltd | Green Investment Group Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | ||||||||||
Dublin EfW (Ireland) | Green Investment Group Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Payments to acquire equity method investments | $ 167 | |||||||||||||
Dublin EfW (Ireland) | Euro Member Countries, Euro | Green Investment Group Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Payments to acquire equity method investments | $ 136 | |||||||||||||
Earls Gate (UK) | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, weight | T | 215,000 | |||||||||||||
Equity method investments | $ 9 | 9 | ||||||||||||
Shareholder loan | 16 | $ 15 | ||||||||||||
Equity method investment, energy output | MWh | 21.5 | |||||||||||||
Earls Gate (UK) | Joint Venture with Green Investment Group Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 50.00% | |||||||||||||
Earls Gate (UK) | Covanta Jersey Assets Ltd. | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investment, ownership percentage | 50.00% | |||||||||||||
Covanta Energy Asia Pacific Holdings Ltd. | Zhao County EfW (China) | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Guaranty liabilities | 15 | |||||||||||||
Other Assets | Zhao County EfW (China) | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investments | 7 | $ 5 | ||||||||||||
Shareholder loan | 9 | |||||||||||||
Other Assets | Protos Energy Recovery Facility | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investments | 6 | |||||||||||||
Shareholder loan | 1 | |||||||||||||
Other Assets | Newhurst Energy Recovery Facility | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investments | 9 | |||||||||||||
Shareholder loan | 3 | |||||||||||||
Other Assets | Covanta Green | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity method investments | 4 | 9 | ||||||||||||
Rookery EfW (UK) | Affiliated Entity | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Other receivable | $ 17 | $ 22 |
Dispositions and Other (additio
Dispositions and Other (additional information) (Details) - USD ($) $ in Millions | Feb. 09, 2018 | Jul. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percentage of ownership before transaction | 15.00% | ||||
Net gain on sale of business and investments | $ 26 | $ 49 | $ 217 | ||
Hydro Facility Investment [Member] | |||||
Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from Sale of Equity Method Investments | $ 12 | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 7 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Pittsfield And Springfield EfW [Member] | |||||
Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net gain on sale of business and investments | $ (11) | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Sanfeng Environmental [Member] | |||||
Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture of interest in subsidiaries and affiliates | $ 13 | ||||
Net gain on sale of business and investments | $ 6 |
Earnings Per Share Computations
Earnings Per Share Computations (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Basic And Diluted Earnings Per Share Computations And Antidilutive Securities Excluded [Abstract] | |||
Weighted Average Number of Shares Outstanding, Basic | 132 | 131 | 130 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 2 | 2 |
Weighted Average Number of Shares Outstanding, Diluted | 132 | 133 | 132 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 | 0 | 0 |
REVENUES - Revenue Recognition
REVENUES - Revenue Recognition (Details) $ in Billions | Dec. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 11.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Percentage | 10.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
REVENUES (Details)
REVENUES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contract with Customer, Asset and Liability [Abstract] | ||
Contract with Customer, Asset, before Allowance for Credit Loss | $ 23 | $ 16 |
Contract with Customer, Liability | 17 | $ 18 |
Contract with Customer, Liability, Revenue Recognized | $ 6 |
Stock Based Compensation (Addit
Stock Based Compensation (Additional Details) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (years) | 3 years | |||
Share-based Payment Arrangement, Noncash Expense | $ 29 | $ 25 | $ 24 | |
Share-based Payment Arrangement, Expense, Tax Benefit | 3 | 5 | 5 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 6 | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Noncash Expense | 19 | 17 | 14 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 9 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months | |||
Performance Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (years) | 3 years | |||
Share-based Payment Arrangement, Noncash Expense | $ 9 | 6 | 5 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 4 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days | |||
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (years) | 3 years | |||
Share-based Payment Arrangement, Noncash Expense | $ 0 | 2 | 5 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 0 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 months 12 days | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Noncash Expense | $ 1 | $ 0 | $ 0 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 2 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days |
Share Based Compensation - Rest
Share Based Compensation - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 3 years | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Repurchased In Period | 432,967 | ||
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 3 years | ||
Granted | 26,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 30,000 | 242,000 | |
Vested | (235,000) | ||
Forfeited | (3,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 9.12 | $ 16.26 | |
Granted | $ 8.41 | $ 17.64 | $ 15.20 |
Fair value of shares vested | $ 4 | $ 7 | $ 11 |
Vested | $ 16.30 | ||
Forfeited | $ 15.90 |
Share Based Compensation - Re_2
Share Based Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 2,075 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 3,483 | 2,272 | |
Vested | (686) | ||
Forfeited | (178) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 12.84 | $ 15.86 | |
Granted | 10.75 | $ 16.70 | $ 14.87 |
Vested | 15.80 | ||
Forfeited | $ 13.58 | ||
Fair value of shares vested | $ 11,000,000 | $ 10,000,000 | $ 8,000,000 |
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 629 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,390 | 1,193 | |
Vested | (410) | ||
Forfeited | (22) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 14.13 | $ 16.57 | |
Granted | 10.89 | $ 17.90 | $ 15.50 |
Vested | 16.30 | ||
Forfeited | $ 13.15 | ||
Fair value of shares vested | $ 7,000,000 | $ 6,000,000 | $ 0 |
STOCK-BASED AWARD PLANS - Perfo
STOCK-BASED AWARD PLANS - Performance Share Narratives (Details) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 3 years | ||
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 3 years | ||
Shares authorized, shares | shares | 4 | ||
Granted | $ / shares | $ 10.89 | $ 17.90 | $ 15.50 |
Fair value of shares vested | $ | $ 7,000,000 | $ 6,000,000 | $ 0 |
Minimum [Member] | Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target Unit Award | 0 | ||
Maximum [Member] | Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target Unit Award | 2 |
STOCK-BASED AWARD PLANS - Per_2
STOCK-BASED AWARD PLANS - Performance Shares Valuation Assumptions (Details) - Performance Awards - $ / shares $ / shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 2 years 9 months 21 days | 2 years 9 months 25 days | 2 years 9 months 25 days |
Expected stock price volatility (percent) | 28.06% | 3.28% | 2.63% |
Risk-free interest rate (percent) | 0.56% | 2.48% | 2.38% |
Stock price (per share) | $ 10,950 | $ 16,350 | $ 14,800 |
STOCK-BASED AWARD PLANS - Per_3
STOCK-BASED AWARD PLANS - Performance Shares Rollforward (Details) - Performance Awards - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | |||
Nonvested at the beginning of the year | 1,193 | ||
Granted | 629 | ||
Vested | (410) | ||
Forfeited | (22) | ||
Nonvested at the end of the year | 1,390 | 1,193 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested at the beginning of the year | $ 16.57 | ||
Granted | 10.89 | $ 17.90 | $ 15.50 |
Vested | 16.30 | ||
Forfeited | 13.15 | ||
Nonvested at the end of the year | $ 14.13 | $ 16.57 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Vesting period (years) | 3 years | |
Stock Option [Member] | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Expiration period | 10 years | |
Stock Option [Member] | Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Expiration period | 6 years | |
Stock Options Fiscal 2004 Plan [Member] | Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Share - Based Compensation Arrangement By Share - Based Payment Award Options Vested Aggregate Intrinsic Value | $ 12,398,000 | |
Schedule of Options Rollfoward [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,275 | 25 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 2,250 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 25 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 7.76 | $ 20.58 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 9 months 18 days | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 7.62 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | 0 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 20.58 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 6 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | |
Maximum [Member] | Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Vesting period (years) | 3 years |
STOCK-BASED AWARD PLANS - Stock
STOCK-BASED AWARD PLANS - Stock Option Assumptions (Details) - Stock Options | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected stock price volatility (percent) | 36.10% |
Risk-free interest rate (percent) | 0.40% |
Expected life (years) | 5 years |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 4.20% |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.54 |
Components of Other Operating E
Components of Other Operating Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Component of Operating Other Cost and Expense [Line Items] | |||
Goodwill | $ 302 | $ 321 | $ 321 |
Impairment charges | 19 | 2 | 86 |
Goodwill, Impairment Loss, Net of Tax | 16 | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | $ 3 | ||
Measurement Input, Discount Rate [Member] | |||
Component of Operating Other Cost and Expense [Line Items] | |||
Goodwill, Measurement Input | 12.00% | ||
Long Term Terminal Growth Rate [Member] | |||
Component of Operating Other Cost and Expense [Line Items] | |||
Goodwill, Measurement Input | 2.50% | ||
CES | |||
Component of Operating Other Cost and Expense [Line Items] | |||
Goodwill | $ 46 | ||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 5.00% | ||
Property Costs, net of impairment [Member] | Other Operating Income (Expense) [Member] | |||
Component of Operating Other Cost and Expense [Line Items] | |||
Insurance Recoveries | $ 1 | $ 0 | 18 |
Business interruption and clean up costs, net [Member] | Other Operating Income (Expense) [Member] | |||
Component of Operating Other Cost and Expense [Line Items] | |||
Insurance Recoveries | $ 1 | $ 2 | $ 19 |
Components of Impairment Charge
Components of Impairment Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Write-Offs [Line Items] | |||
Impairment charges | $ 19 | $ 2 | $ 86 |
Supplementary Balance Sheet Inf
Supplementary Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Prepaid expenses | $ 32 | $ 27 |
Other receivable | 26 | 22 |
Spare parts | 23 | 20 |
Other | 36 | 36 |
Total prepaid expenses and other current assets | 117 | 105 |
Operating expenses, payroll and related expenses | 137 | 139 |
Deferred revenue | 10 | 12 |
Accrued liabilities to client communities | 26 | 16 |
Interest payable | 46 | 27 |
Dividends payable | 15 | 38 |
Insurance premium financing | 28 | 24 |
Other | 41 | 36 |
Total accrued expenses and other current liabilities | $ 303 | $ 292 |
SUPPLEMENTARY INFORMATION - Geo
SUPPLEMENTARY INFORMATION - Geographical Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating revenue | $ 1,904 | $ 1,870 | $ 1,868 |
Total Assets: | 3,706 | 3,715 | 3,843 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating revenue | 1,832 | 1,800 | 1,785 |
Total Assets: | 3,305 | 3,466 | 3,635 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Operating revenue | 72 | 70 | 83 |
Total Assets: | $ 401 | $ 249 | $ 208 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Current Federal Tax Expense (Benefit) | $ 2 | $ 0 | $ 0 | |
Current State and Local Tax Expense (Benefit) | (10) | 2 | 1 | |
Current Foreign Tax Expense (Benefit) | 0 | 0 | 1 | |
Current Income Tax Expense (Benefit) | (8) | 2 | 2 | |
Deferred Federal Income Tax Expense (Benefit) | (7) | (4) | (1) | |
Deferred State and Local Income Tax Expense (Benefit) | (3) | (4) | (25) | |
Deferred Foreign Income Tax Expense (Benefit) | 0 | (1) | (5) | |
Deferred income taxes | (10) | (9) | (31) | |
Pre-tax income [Abstract] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | (55) | (25) | (43) | |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 5 | 22 | 160 | |
(Loss) income before income tax benefit and equity in net income from unconsolidated investments | $ (50) | $ (3) | $ 117 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||
Effective income tax rate | (37.00%) | (264.00%) | 25.00% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | $ (10) | $ (1) | $ 25 | |
Income Tax Reconciliation, State and Local Income Taxes | (2) | (1) | (1) | |
Income Tax Reconciliation, Change in Deferred Tax Assets Valuation Allowance | 2 | 1 | 3 | |
Income Tax Reconciliation, Other Reconciling Items | 2 | 4 | 5 | |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | (1) | (2) | (3) | |
Effective Income Tax Rate Reconciliation, Disposition of Business, Amount | (4) | (9) | (44) | |
Income Tax Reconciliation, Tax Credits, Research | 1 | (2) | (13) | |
Income Tax Reconciliation Uncertain Tax Positions | (9) | (1) | (4) | |
Income Tax Reconciliation, Other Adjustments | 3 | 4 | 2 | |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 0 | 0 | 1 | |
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Consolidated net operating loss carryforwards | 239 | |||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 1 | |||
Valuation allowance | (72) | (65) | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Deferred Tax Assets, Operating Loss Carryforwards | 106 | 90 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 67 | 63 | ||
Deferred Tax Assets Prepaid Expenses And Accruals | 49 | 49 | ||
Deferred Tax Assets, Unbilled Accounts | 12 | 8 | ||
Deferred Tax Assets, Gross | 248 | 236 | ||
Deferred Tax Assets, Net of Valuation Allowance | 176 | 171 | ||
Deferred Tax Assets, Interest Expense | 14 | 26 | ||
Deferred Tax Liabilities, Property, Plant and Equipment | 496 | 517 | ||
Deferred Tax Liabilities, Intangible Assets | 29 | 17 | ||
Deferred Tax Liabilities, Other | 13 | 9 | ||
Deferred Tax Liabilities Gross | 538 | 543 | ||
Deferred Tax Liabilities, Net | 362 | 372 | ||
Disclosure Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits [Abstract] | ||||
Unrecognized Tax Benefits | 41 | $ 48 | ||
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | 2 | 2 | 2 | |
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 1 | |||
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations | (7) | (1) | (2) | |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | (2) | $ (8) | ||
Uncertain Tax Positions [Abstract] | ||||
Liability for Uncertainty in Income Taxes, Current | 35 | 40 | ||
Accrued interest and penalties associated with liabilities for unrecognized tax positions | 1 | $ 6 | ||
State and Local Jurisdiction [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Consolidated net operating loss carryforwards | 508 | |||
Foreign Tax Authority [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Consolidated net operating loss carryforwards | 181 | |||
Production Type [Member] | Federal Jurisdiction [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Tax credit carryforwards | 60 | |||
Research Tax Credit Carryforward [Member] | Federal Jurisdiction [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Tax credit carryforwards | $ 1 |
ACCOUNTS RECEIVABLE SECURITIZ_3
ACCOUNTS RECEIVABLE SECURITIZATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 789,000,000 | $ 224,000,000 |
Cash Flows Between Transferor and Transferee, Proceeds from Collections Reinvested in Revolving Period Transfers | 788,000,000 | 223,000,000 |
Maximum amount of receivables re-purchasable | $ 120,000,000 | 100,000,000 |
Weghied average interest rate on receivables repurchased (percent) | 1.28% | |
Cash proceeds received | $ 99,000,000 | |
Increase in receivables purchasable | 20,000,000 | |
Loss on accounts receivable sold | 0 | 2,000,000 |
Pledged receivables | 128,000,000 | $ 142,000,000 |
Transaction costs [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loss on accounts receivable sold | (1,000,000) | |
Guarantees [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loss on accounts receivable sold | $ (1,000,000) |
CREDIT LOSSES - Changes in Allo
CREDIT LOSSES - Changes in Allowance for Credit Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 9 | ||
Provision for expected credit losses | 1 | $ 2 | $ 2 |
Write-offs charged against the allowance | (2) | ||
Ending balance | $ 8 | $ 9 |
CREDIT LOSSES - Shareholder Loa
CREDIT LOSSES - Shareholder Loans (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Credit Loss [Abstract] | ||
Included in prepaid expenses and other assets | $ 27 | $ 22 |
Included in other assets - long-term | 29 | 15 |
Total | $ 56 | $ 37 |
EQUITY METHOD INVESTMENTS (Deta
EQUITY METHOD INVESTMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 188 | $ 167 | |
Operating revenue | 1,904 | 1,870 | $ 1,868 |
Equity Method Investments [Member] | Dublin EfW (Ireland) | |||
Schedule of Equity Method Investments [Line Items] | |||
Operating revenue | $ 31 | $ 30 |
EQUITY METHOD INVESTMENTS - Own
EQUITY METHOD INVESTMENTS - Ownership Percentage in Equity Method Investments (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Dublin EfW (Ireland) | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 50.00% | 50.00% |
Ambiente 2000 S.r.l. (Italy) | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 40.00% | 40.00% |
Earls Gate (UK) | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 25.00% | 25.00% |
Rookery EfW (UK) | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 40.00% | 40.00% |
Newhurst Energy Recovery Facility | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 25.00% | 0.00% |
Protos Energy Recovery Facility | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 37.50% | 0.00% |
Zhao County EfW (China) | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 26.00% | 26.00% |
ECEG Holdings, Ltd. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 50.00% |
EQUITY METHOD INVESTMENTS - Sum
EQUITY METHOD INVESTMENTS - Summarized Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Operating revenue | $ 1,904 | $ 1,870 | $ 1,868 |
Operating income | 69 | 90 | 63 |
Current assets | 443 | 400 | |
Current liabilities | 405 | 353 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Schedule of Equity Method Investments [Line Items] | |||
Operating revenue | 119 | 120 | 112 |
Operating income | 26 | 28 | 31 |
Net income | 8 | 11 | $ 13 |
Current assets | 235 | 180 | |
Long-term assets | 1,518 | 1,008 | |
Current liabilities | 127 | 104 | |
Long-term liabilities | $ 1,212 | $ 735 |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | |||
Cash and cash equivalents | $ 55 | $ 37 | $ 58 |
Estimate of Fair Value Measurement [Member] | |||
Assets: | |||
Total assets: | 13 | 14 | |
Liabilities: | |||
Total liabilities: | 10 | 2 | |
Estimate of Fair Value Measurement [Member] | Mutual And Bond Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Investments | 2 | 2 | |
Energy Hedges [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 11 | ||
Energy Hedges [Member] | Estimate of Fair Value Measurement [Member] | Energy Hedges [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset | 12 | ||
Interest rate swap | Fair Value, Inputs, Level 2 [Member] | |||
Liabilities: | |||
Derivative Liability | $ 10 | $ 2 |
FINANCIAL INSTRUMENTS Financial
FINANCIAL INSTRUMENTS Financial Instruments Recorded at Carrying Amount (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 2,414 | $ 2,383 |
Project Debt | 125 | 133 |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 2,414 | 2,383 |
Project Debt | 125 | 133 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 2,492 | 2,459 |
Project Debt | $ 130 | $ 138 |
Summary of Fair Value of Deriva
Summary of Fair Value of Derivative Instruments Not Designated as Hedging Instruments in Consolidated Balance Sheets (Detail) MW in Millions | Dec. 31, 2020MW |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 2.3 |
Fiscal Year 2020 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 2.1 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) MW in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)MW | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | MW | 2.3 | ||
Energy Hedges [Member] | |||
Derivative [Line Items] | |||
Proceeds from Hedge, Investing Activities | $ 36,000,000 | $ 18,000,000 | $ 8,000,000 |
Payments for (Proceeds from) Hedge, Investing Activities | 2,000,000 | $ 24,000,000 | |
Interest rate swap | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 200,000,000 | ||
Fiscal Year 2020 [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | MW | 2.1 | ||
Fiscal Year 2021 [Member] [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | MW | 0.2 | ||
Fair Value, Inputs, Level 2 [Member] | Interest rate swap | |||
Derivative [Line Items] | |||
Derivative Liability | $ 10,000,000 | $ 2,000,000 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Other Finite and Infinite Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 500 | $ 499 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 263 | 241 | |
Finite-Lived Intangible Assets, Net | 237 | 258 | |
Amortization of Intangible Assets | 21 | 22 | $ 20 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | (20) | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | (20) | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | (18) | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | (15) | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ (15) | ||
Finite-Lived Intangible Asset, Weighted Average Period before Next Renewal or Extension | 7 years | ||
Waste Service And Energy Contracts Intangible Assets [Member] | |||
Schedule of Other Finite and Infinite Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 18 years | ||
Finite-Lived Intangible Assets, Gross | $ 447 | 447 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 227 | 211 | |
Finite-Lived Intangible Assets, Net | $ 220 | 236 | |
Waste And Service Contracts Intangible Liabilities [Member] | |||
Schedule of Other Finite and Infinite Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 16 years | ||
Waste And Service Contracts Gross Noncurrent | $ 67 | 72 | |
Waste And Service Contracts Accumulated Amortization Noncurrent | (62) | (66) | |
Waste Service And Energy Contracts Net Noncurrent | (5) | (6) | |
Amortization of Intangible Assets | $ (1) | (2) | $ (2) |
Other Intangible Assets [Member] | |||
Schedule of Other Finite and Infinite Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years | ||
Finite-Lived Intangible Assets, Gross | $ 53 | 52 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 36 | 30 | |
Finite-Lived Intangible Assets, Net | $ 17 | $ 22 |
Schedule of Goodwill (Details)
Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 321 | $ 321 |
Goodwill related to acquisitions | 0 | |
Impairment charges | (19) | |
Ending balance | 302 | $ 321 |
Goodwill, expected tax deductible amount | $ 39 |
Consolidated Debt Table (Detail
Consolidated Debt Table (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2017 | Mar. 01, 2017 | Mar. 01, 2014 | |
Long-term Line of Credit | $ 596,000,000 | $ 567,000,000 | |||
Long-term debt | 2,414,000,000 | 2,383,000,000 | |||
Finance Lease, Liability, Total | 85,000,000 | 90,000,000 | |||
Total Long Term Debt, Senior Notes and Debentures | 1,184,000,000 | 1,186,000,000 | |||
Total Long Term Debt, Tax Exempt Bonds | 540,000,000 | 539,000,000 | |||
Long-term Debt, Current Maturities | 18,000,000 | 17,000,000 | |||
Long-term Debt, Excluding Current Maturities | 2,396,000,000 | 2,366,000,000 | |||
Project Debt | 125,000,000 | 133,000,000 | |||
Current portion of project debt | (9,000,000) | (8,000,000) | |||
Project Debt Noncurrent | 116,000,000 | 125,000,000 | |||
Debt, Total | 2,539,000,000 | 2,516,000,000 | |||
Debt, Current | (27,000,000) | (25,000,000) | |||
Debt, Noncurrent | 2,512,000,000 | 2,491,000,000 | |||
Project Debt Type [Member] | |||||
Finance Lease, Liability, Total | 78,000,000 | 84,000,000 | $ 104,000,000 | ||
Debt Instrument, Unamortized Premium | $ 2,000,000 | 2,000,000 | |||
Stated interest rate (percent) | 5.00% | ||||
Revolving Credit Facility [Member] | |||||
Long-term Line of Credit | $ 222,000,000 | 183,000,000 | |||
Debt Instrument, Interest Rate During Period | 2.55% | ||||
Term Loan, Due 2023 [Member] | |||||
Debt Instrument, Interest Rate During Period | 3.15% | ||||
Term Loan [Member] | |||||
Long-term debt | $ 374,000,000 | 384,000,000 | |||
Tax Exempt Bonds due 2024 to 2042 [Member] | |||||
Long-term debt | 544,000,000 | 544,000,000 | |||
Equipment Financing [Member] | |||||
Long-term debt | 78,000,000 | 85,000,000 | |||
Long-term Debt [Member] | |||||
Finance Lease, Liability, Total | 7,000,000 | 6,000,000 | |||
Americas Project Debt Related To Service Fee Structures [Member] | |||||
Project Debt | 45,000,000 | 47,000,000 | |||
China Venture Loan [Member] | |||||
Long-term debt | 9,000,000 | 0 | |||
Senior Notes [Member] | |||||
Debt instrument, face amount | 1,200,000,000 | 1,200,000,000 | |||
Debt Issuance Costs, Net | 16,000,000 | 14,000,000 | |||
Senior Notes [Member] | Senior Notes 5.875 Percent Due 2024 [Member] | |||||
Debt instrument, face amount | $ 0 | 400,000,000 | $ 400,000,000 | ||
Stated interest rate (percent) | 5.875% | ||||
Senior Notes [Member] | Senior Notes 5.875 Percent Due 2025 [Member] | |||||
Debt instrument, face amount | $ 400,000,000 | 400,000,000 | $ 400,000,000 | ||
Stated interest rate (percent) | 5.875% | 5.875% | |||
Tax Exempt Bond [Member] | |||||
Debt Issuance Costs, Net | $ 4,000,000 | $ 5,000,000 | |||
Minimum [Member] | Americas Project Debt Related To Service Fee Structures [Member] | |||||
Stated interest rate (percent) | 5.00% | ||||
Minimum [Member] | Americas Project Debt Related To Tip Fee Structures [Member] | |||||
Stated interest rate (percent) | 5.00% | ||||
Maximum [Member] | Americas Project Debt Related To Service Fee Structures [Member] | |||||
Stated interest rate (percent) | 5.00% | ||||
Maximum [Member] | Americas Project Debt Related To Tip Fee Structures [Member] | |||||
Stated interest rate (percent) | 5.00% | ||||
Interest rate swap | |||||
Derivative, Notional Amount | $ 200,000,000 |
Credit Facilities (Details)
Credit Facilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Credit Facilities (Additional Information) [Abstract] | ||
Long-term debt | $ 2,414 | $ 2,383 |
Availability under Revolving Credit Facility [Abstract] | ||
Long-term Line of Credit | $ 596 | 567 |
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Debt Instrument Covenant Total Leverage Ratio Maximum | 4 | |
Debt Instrument Covenant Permitted Interest Ratio Minimum | 3 | |
Revolving Credit Facility [Member] | ||
Credit Facilities (Additional Information) [Abstract] | ||
Credit Facilities | $ 900 | |
Availability under Revolving Credit Facility [Abstract] | ||
Long-term Line of Credit | 222 | 183 |
Line of Credit Facility, Remaining Borrowing Capacity | 443 | |
Term Loan [Member] | ||
Credit Facilities (Additional Information) [Abstract] | ||
Long-term debt | $ 374 | $ 384 |
Letters of credit [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Percentage Of Fronting Fee | 0.15% | |
Federal Funds Rate [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
One Month L I B O R [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
L I B O R [Member] | Term Loan [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
L I B O R Interest Rate Floor | 2.00% | |
Minimum [Member] | Revolving Credit Facility [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | |
Minimum [Member] | Base Rate [Member] | Term Loan [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |
Minimum [Member] | Base Rate [Member] | Base Rate Loans [Member] | Revolving Credit Facility [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
Minimum [Member] | L I B O R [Member] | Euro Dollar Rate [Member] | Revolving Credit Facility [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Maximum [Member] | Revolving Credit Facility [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |
Maximum [Member] | Base Rate [Member] | Base Rate Loans [Member] | Revolving Credit Facility [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
Maximum [Member] | Base Rate [Member] | Base Rate Loans [Member] | Term Loan [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
Maximum [Member] | L I B O R [Member] | Term Loan [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Maximum [Member] | L I B O R [Member] | Euro Dollar Rate [Member] | Revolving Credit Facility [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |
Foreign Subsidiaries [Member] | ||
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Guarantee Percent | 65.00% | |
Fiscal Year 2020 to 2022 [Member] | ||
Line of Credit Facility, Periodic Payment, Principal | $ 10 | |
Fiscal Year 2023 [Member] | ||
Line of Credit Facility, Periodic Payment, Principal | 355 | |
Incremental Credit Facility [Member] | ||
Credit Facilities (Additional Information) [Abstract] | ||
Credit Facilities | 500 | |
Credit Facilities [Member] | ||
Credit Facilities (Additional Information) [Abstract] | ||
Debt Issuance Costs, Line of Credit Arrangements, Net | 7 | |
Availability under Revolving Credit Facility [Abstract] | ||
Long-term Line of Credit | 1,300 | |
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Debt Instrument, Unamortized Deferred Costs | 4 | |
Term Loan [Member] | ||
Availability under Revolving Credit Facility [Abstract] | ||
Long-term Line of Credit | 400 | |
Revolving Credit Facility [Member] | ||
Availability under Revolving Credit Facility [Abstract] | ||
Long-term Line of Credit | 900 | |
Credit Facilities Interest and Fees Guarantees Cov Cal [Abstract] | ||
Line Of Credit Facility, Limit Of Issuance On Letters Of Credit | 600 | |
Line Of Credit Facility, Sub-limit For Issuance Of Swing Line Loans | 50 | |
Letters of credit [Member] | ||
Availability under Revolving Credit Facility [Abstract] | ||
Letters of Credit Outstanding, Amount | 79 | |
Letters of credit [Member] | Revolving Credit Facility [Member] | ||
Availability under Revolving Credit Facility [Abstract] | ||
Letters of Credit Outstanding, Amount | $ 235 |
Senior Notes (Details)
Senior Notes (Details) - USD ($) | Mar. 01, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2020 | Oct. 26, 2018 | Mar. 01, 2014 |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 2,414,000,000 | $ 2,383,000,000 | |||||
Loss on extinguishment of debt | (12,000,000) | 0 | $ (15,000,000) | ||||
Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | 1,200,000,000 | 1,200,000,000 | |||||
Debt Issuance Costs, Net | $ 16,000,000 | 14,000,000 | |||||
Senior Notes [Member] | Senior Notes Due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (percent) | 5.00% | 5.00% | |||||
Debt instrument, face amount | $ 400,000,000 | 0 | $ 400,000,000 | ||||
Long-term debt | 393,000,000 | ||||||
Debt Issuance Costs, Net | $ 7,000,000 | ||||||
Senior Notes [Member] | Senior Notes 6.00 Percent Due 2027 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (percent) | 6.00% | ||||||
Debt instrument, face amount | $ 400,000,000 | 400,000,000 | $ 400,000,000 | ||||
Debt Issuance Costs, Net | 9,000,000 | ||||||
Loss on extinguishment of debt | $ 3,000,000 | ||||||
Proceeds from debt, net of issuance costs | $ 394,000,000 | ||||||
Senior Notes [Member] | Senior Notes 5.875 Percent Due 2025 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (percent) | 5.875% | 5.875% | |||||
Debt instrument, face amount | $ 400,000,000 | $ 400,000,000 | 400,000,000 | ||||
Proceeds from debt, net of issuance costs | $ 394,000,000 | ||||||
Senior Notes [Member] | Senior Notes 5.875 Percent Due 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (percent) | 5.875% | ||||||
Debt instrument, face amount | $ 0 | $ 400,000,000 | $ 400,000,000 | ||||
Senior Notes [Member] | Senior Notes Due 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate (percent) | 5.875% | ||||||
Loss on extinguishment of debt | (10,000,000) | ||||||
Redemption premium | 8,000,000 | ||||||
Write off of deferred debt issuance cost | $ 2,000,000 |
Tax-Exempt Bonds (Details)
Tax-Exempt Bonds (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 2,414 | $ 2,383 | ||
Long-term Debt, Current Maturities | 18 | 17 | ||
Loss on extinguishment of debt | (12) | 0 | $ (15) | |
Total Long Term Debt, Tax Exempt Bonds | 540 | 539 | ||
Tax-Exempt Bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 544 | 544 | ||
Debt Issuance Costs, Net | 3 | $ 1 | ||
Loss on extinguishment of debt | 3 | |||
Write off of deferred debt issuance cost | $ 1 | |||
Tax-Exempt Bonds [Member] | New Hampshire Series 2020A | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 3.625% | 3.625% | ||
Long-term debt | $ 40 | 0 | ||
Debt instrument, face amount | $ 39.4 | |||
Tax-Exempt Bonds [Member] | New Hampshire Series 2020B | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 3.75% | 3.75% | ||
Long-term debt | $ 90 | 0 | ||
Debt instrument, face amount | $ 90 | |||
Tax-Exempt Bonds [Member] | Pennsylvania Series 2019A | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 3.25% | |||
Long-term debt | $ 50 | 50 | ||
Tax-Exempt Bonds [Member] | New Hampshire Series 2018A | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 4.00% | |||
Long-term debt | $ 20 | 20 | ||
Tax-Exempt Bonds [Member] | New Hampshire Series 2018B | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 4.625% | |||
Long-term debt | $ 67 | 67 | ||
Tax-Exempt Bonds [Member] | New Hampshire Series 2018C | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 4.875% | |||
Long-term debt | $ 82 | 82 | ||
Tax-Exempt Bonds [Member] | New York Series 2018A | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 4.75% | |||
Long-term debt | $ 130 | 130 | ||
Tax-Exempt Bonds [Member] | New York Series 2018B | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 3.50% | |||
Long-term debt | $ 35 | 35 | ||
Tax-Exempt Bonds [Member] | Virginia Series 2018A-1 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 5.00% | |||
Long-term debt | $ 30 | 30 | ||
Debt Instrument, Maximum Borrowing Capacity | 50 | |||
Long-term Debt, Reserved for Future Issuance | $ 20 | |||
Tax-Exempt Bonds [Member] | New Jersey Series 2015A | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 5.25% | |||
Long-term debt | $ 0 | 90 | ||
Tax-Exempt Bonds [Member] | Pennsylvania Series 2015A | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (percent) | 5.00% | |||
Long-term debt | $ 0 | $ 40 | ||
Tax-Exempt Bonds [Member] | New York 2018 Series Total | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 165 | |||
Tax-Exempt Bonds [Member] | New Hampshire Series 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 170 |
CONSOLIDATED DEBT Tax-Exempt Va
CONSOLIDATED DEBT Tax-Exempt Variable Rate Demand Bonds due 2043 (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,414 | $ 2,383 |
CONSOLIDATED DEBT Union Lease (
CONSOLIDATED DEBT Union Lease (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2017 |
Debt Instrument [Line Items] | |||
Finance Lease, Liability | $ 85 | $ 90 | |
Project Debt Type [Member] | |||
Debt Instrument [Line Items] | |||
Finance Lease, Liability | $ 78 | $ 84 | $ 104 |
Stated interest rate (percent) | 5.00% |
CONSOLIDATED DEBT Equipment Fin
CONSOLIDATED DEBT Equipment Financing Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,383 | $ 2,414 |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.55% | |
Equipment Financing [Member] | ||
Debt Instrument [Line Items] | ||
Proceeds from borrowings on long-term debt | $ 31 | |
Long-term debt | $ 85 | 78 |
2020 | 7 | |
2021 | 7 | |
2022 | 8 | |
2023 | 7 | |
2024 | 5 | |
Thereafter | $ 44 | |
Equipment Financing [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.75% |
Project Debt (Details)
Project Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Project Debt | $ 125 | $ 133 |
Project Debt Noncurrent | 116 | 125 |
Client Community Revenue Bonds Collateralized By Property Plant And Equipment | 494 | |
Client Community Revenue Bonds Collateralized By Restricted Funds Held In Trust | 7 | |
Project Debt Type [Member] | ||
Debt Instrument [Line Items] | ||
2020 | 2 | |
2021 | 2 | |
2022 | 2 | |
2023 | 2 | |
2024 | 3 | |
Thereafter | 34 | |
Debt Instrument, Unamortized Premium | $ 2 | 2 |
Stated interest rate (percent) | 5.00% | |
Equipment Financing [Member] | ||
Debt Instrument [Line Items] | ||
2020 | $ 7 | |
2021 | 7 | |
2022 | 8 | |
2023 | 7 | |
2024 | 5 | |
Thereafter | 44 | |
Americas Project Debt Related To Service Fee Structures [Member] | ||
Debt Instrument [Line Items] | ||
Project Debt | $ 45 | $ 47 |
Minimum [Member] | Americas Project Debt Related To Service Fee Structures [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 5.00% | |
Minimum [Member] | Americas Project Debt Related To Tip Fee Structures [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 5.00% | |
Maximum [Member] | Americas Project Debt Related To Service Fee Structures [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 5.00% | |
Maximum [Member] | Americas Project Debt Related To Tip Fee Structures [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate (percent) | 5.00% |
CONSOLIDATED DEBT Deferred Fina
CONSOLIDATED DEBT Deferred Financing Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Financing Costs [Abstract] | |||
Amortization of Debt Issuance Costs | $ 4 | $ 5 | $ 5 |
CONSOLIDATED DEBT Dublin Projec
CONSOLIDATED DEBT Dublin Project Financing (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,414 | $ 2,383 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 374 | 384 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Net | $ (16) | $ (14) |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Finance Lease, Right-of-Use Asset, Amortization | $ 8 | $ 7 |
Finance Lease, Interest Expense | 4 | 4 |
Operating Lease, Right-of-Use Asset, Amortization | 7 | 8 |
Operating Lease, Interest Expense | 2 | 2 |
Lease, Cost, Total | $ 21 | $ 21 |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 43 | $ 46 |
Operating Lease, Liability, Current | $ 6 | $ 6 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Operating Lease, Liability, Noncurrent | $ 43 | $ 46 |
Operating Lease, Liability, Total | 49 | 52 |
Finance Lease, Right-Of-Use Asset, Gross | 170 | 168 |
Finance Lease, Right-Of-Use Asset, Accumulated Depreciation | (33) | (25) |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Total | 137 | 143 |
Finance Lease, Liability, Total | $ 85 | $ 90 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Project Debt, Current [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Liability, Current | $ 6 | $ 6 |
Project Debt, Noncurrent [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Liability, Noncurrent | 72 | 78 |
Long Term Debt, Current Maturities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Liability, Current | 1 | 0 |
Long Term Debt, Excluding Current Maturities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Liability, Noncurrent | $ 6 | $ 6 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating Lease, Payments | $ 9 | $ 10 |
Finance Lease, Principal Payments | $ 7 | $ 6 |
Weighted average remaining operating lease term (in years) | 11 years 4 months 24 days | 11 years 10 months 24 days |
Weighted average remaining financing lease term (in years) | 31 years 1 month 6 days | 32 years 3 months 18 days |
Weighted average discount rate operating leases (percent) | 4.58% | 4.64% |
Weighted average discount rate financing leases (percent) | 5.06% | 5.05% |
LEASES - Lease Maturity Schedul
LEASES - Lease Maturity Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2020 | $ 9 | |
2021 | 8 | |
2022 | 7 | |
2023 | 7 | |
2024 | 6 | |
2026 and thereafter | 27 | |
Total lease payments | 64 | |
Less: Amounts representing interest | (15) | |
Total lease obligations | 49 | $ 52 |
Finance Leases | ||
2020 | 12 | |
2021 | 12 | |
2022 | 12 | |
2023 | 11 | |
2024 | 13 | |
2026 and thereafter | 92 | |
Total lease payments | 152 | |
Less: Amounts representing interest | (67) | |
Total lease obligations | $ 85 | $ 90 |
LEASES - Narratives (Details)
LEASES - Narratives (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Rental expense | $ 23 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||||
Loss Contingency Accrual | $ 4 | $ 3 | ||
Percentage of ownership before transaction | 15.00% | |||
Settlement payment | $ 7 | |||
Loss Contingency Accrual, Payments | $ 0 | 0 | $ 7 | |
Payments to Acquire Productive Assets | 162 | $ 158 | $ 206 | |
Other Commitment | 456 | |||
Letters of credit [Member] | ||||
Loss Contingencies [Line Items] | ||||
Letters of Credit Outstanding, Amount | 79 | |||
Surety Bonds [Member] | ||||
Loss Contingencies [Line Items] | ||||
Other Commitment | 142 | |||
Revolving Credit Facility [Member] | Letters of credit [Member] | ||||
Loss Contingencies [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 235 |
Schedule II Valuation and Qua_3
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Allowance, Notes Receivable [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 8 | $ 9 | $ 8 | $ 14 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 1 | 2 | 2 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Increase (Decrease) Adjustment | 0 | 0 | 0 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (2) | (1) | (8) | |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 72 | 65 | 73 | $ 77 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 8 | 4 | 6 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Increase (Decrease) Adjustment | 0 | 1 | (4) | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | $ (1) | $ (13) | $ (6) |