þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
¨ | OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
DELAWARE | 65-0716904 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
18500 NORTH ALLIED WAY PHOENIX, ARIZONA | 85054 |
(Address of principal executive offices) | (Zip code) |
Large accelerated filer | þ | Accelerated filer | ¨ |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
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September 30, 2012 | December 31, 2011 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 74.0 | $ | 66.3 | |||
Accounts receivable, less allowance for doubtful accounts of $44.8 and $48.1, respectively | 854.2 | 825.8 | |||||
Prepaid expenses and other current assets | 217.9 | 215.9 | |||||
Deferred tax assets | 123.9 | 157.7 | |||||
Total current assets | 1,270.0 | 1,265.7 | |||||
Restricted cash and marketable securities | 132.9 | 189.6 | |||||
Property and equipment, net | 6,903.2 | 6,792.3 | |||||
Goodwill | 10,678.2 | 10,647.0 | |||||
Other intangible assets, net | 371.9 | 409.6 | |||||
Other assets | 278.1 | 247.3 | |||||
Total assets | $ | 19,634.3 | $ | 19,551.5 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 490.6 | $ | 563.6 | |||
Notes payable and current maturities of long-term debt | 44.4 | 34.8 | |||||
Deferred revenue | 311.1 | 290.2 | |||||
Accrued landfill and environmental costs, current portion | 185.4 | 184.2 | |||||
Accrued interest | 71.6 | 72.2 | |||||
Other accrued liabilities | 596.1 | 752.5 | |||||
Total current liabilities | 1,699.2 | 1,897.5 | |||||
Long-term debt, net of current maturities | 7,060.0 | 6,887.0 | |||||
Accrued landfill and environmental costs, net of current portion | 1,419.6 | 1,396.5 | |||||
Deferred income taxes and other long-term tax liabilities | 1,165.3 | 1,161.1 | |||||
Self-insurance reserves, net of current portion | 288.1 | 303.9 | |||||
Other long-term liabilities | 260.5 | 222.1 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, par value $0.01 per share; 50 shares authorized; none issued | — | — | |||||
Common stock, par value $0.01 per share; 750 shares authorized; 404.4 and 402.1 issued including shares held in treasury, respectively | 4.0 | 4.0 | |||||
Additional paid-in capital | 6,563.3 | 6,495.6 | |||||
Retained earnings | 2,361.3 | 2,164.7 | |||||
Treasury stock, at cost (39.8 and 32.2 shares, respectively) | (1,169.6 | ) | (961.5 | ) | |||
Accumulated other comprehensive loss, net of tax | (19.8 | ) | (21.5 | ) | |||
Total Republic Services, Inc. stockholders’ equity | 7,739.2 | 7,681.3 | |||||
Noncontrolling interests | 2.4 | 2.1 | |||||
Total stockholders’ equity | 7,741.6 | 7,683.4 | |||||
Total liabilities and stockholders’ equity | $ | 19,634.3 | $ | 19,551.5 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue | $ | 2,046.9 | $ | 2,116.2 | $ | 6,089.9 | $ | 6,167.7 | |||||||
Expenses: | |||||||||||||||
Cost of operations | 1,280.5 | 1,260.0 | 3,722.2 | 3,657.5 | |||||||||||
Depreciation, amortization and depletion | 203.5 | 215.0 | 632.1 | 629.4 | |||||||||||
Accretion | 19.7 | 19.4 | 59.1 | 58.6 | |||||||||||
Selling, general and administrative | 193.8 | 207.5 | 613.5 | 611.5 | |||||||||||
Negotiation and withdrawal costs - Central States | 31.3 | — | 34.6 | — | |||||||||||
Loss (gain) on disposition of assets and impairments, net | 0.2 | 5.8 | (3.4 | ) | 24.8 | ||||||||||
Operating income | 317.9 | 408.5 | 1,031.8 | 1,185.9 | |||||||||||
Interest expense | (93.2 | ) | (108.3 | ) | (296.3 | ) | (335.4 | ) | |||||||
Loss on extinguishment of debt | (2.3 | ) | (6.0 | ) | (112.6 | ) | (207.3 | ) | |||||||
Interest income | 0.3 | — | 0.8 | 0.3 | |||||||||||
Other income, net | 0.4 | 1.8 | 1.1 | 3.8 | |||||||||||
Income before income taxes | 223.1 | 296.0 | 624.8 | 647.3 | |||||||||||
Provision for income taxes | 70.3 | 102.4 | 179.7 | 249.4 | |||||||||||
Net income | 152.8 | 193.6 | 445.1 | 397.9 | |||||||||||
Net (income) loss attributable to noncontrolling interests | (0.1 | ) | (0.1 | ) | (0.3 | ) | 0.3 | ||||||||
Net income attributable to Republic Services, Inc. | $ | 152.7 | $ | 193.5 | $ | 444.8 | $ | 398.2 | |||||||
Basic earnings per share attributable to Republic Services, Inc. stockholders: | |||||||||||||||
Basic earnings per share | $ | 0.42 | $ | 0.52 | $ | 1.21 | $ | 1.05 | |||||||
Weighted average common shares outstanding | 365.4 | 373.2 | 368.1 | 377.9 | |||||||||||
Diluted earnings per share attributable to Republic Services, Inc. stockholders: | |||||||||||||||
Diluted earnings per share | $ | 0.42 | $ | 0.52 | $ | 1.20 | $ | 1.05 | |||||||
Weighted average common and common equivalent shares outstanding | 366.4 | 374.7 | 369.3 | 379.6 | |||||||||||
Cash dividends per common share | $ | 0.235 | $ | 0.220 | $ | 0.675 | $ | 0.620 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income | $ | 152.8 | $ | 193.6 | $ | 445.1 | $ | 397.9 | |||||||
Other comprehensive income (loss), net of tax | |||||||||||||||
Hedging related activity | 9.0 | (5.2 | ) | 2.2 | (25.0 | ) | |||||||||
Pension related activity | 3.0 | (0.8 | ) | (0.5 | ) | 0.9 | |||||||||
Other comprehensive income (loss), net of tax | 12.0 | (6.0 | ) | 1.7 | (24.1 | ) | |||||||||
Comprehensive income | 164.8 | 187.6 | 446.8 | 373.8 | |||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | (0.1 | ) | (0.1 | ) | (0.3 | ) | 0.3 | ||||||||
Comprehensive income attributable to Republic Services, Inc. | $ | 164.7 | $ | 187.5 | $ | 446.5 | $ | 374.1 |
Republic Services, Inc. Stockholders’ Equity | |||||||||||||||||||||||||||||
Common Stock | Additional Paid-In | Retained | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Noncontrolling | ||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Shares | Amount | Net of Tax | Interests | ||||||||||||||||||||||
Balance as of December 31, 2011 | 402.1 | $ | 4.0 | $ | 6,495.6 | $ | 2,164.7 | (32.2 | ) | $ | (961.5 | ) | $ | (21.5 | ) | $ | 2.1 | ||||||||||||
Net income | — | — | — | 444.8 | — | — | — | 0.3 | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 1.7 | — | |||||||||||||||||||||
Cash dividends declared | — | — | — | (247.6 | ) | — | — | — | — | ||||||||||||||||||||
Issuances of common stock | 2.3 | — | 50.9 | — | — | — | — | — | |||||||||||||||||||||
Stock-based compensation | — | — | 16.8 | (0.6 | ) | — | — | — | — | ||||||||||||||||||||
Purchase of common stock for treasury | — | — | — | — | (7.6 | ) | (208.1 | ) | — | — | |||||||||||||||||||
Balance as of September 30, 2012 | 404.4 | $ | 4.0 | $ | 6,563.3 | $ | 2,361.3 | (39.8 | ) | $ | (1,169.6 | ) | $ | (19.8 | ) | $ | 2.4 |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Cash provided by operating activities: | |||||||
Net income | $ | 445.1 | $ | 397.9 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization of property and equipment | 387.9 | 384.3 | |||||
Landfill depletion and amortization | 191.3 | 188.0 | |||||
Amortization of intangible and other assets | 52.9 | 57.1 | |||||
Accretion | 59.1 | 58.6 | |||||
Non-cash interest expense - debt | 10.5 | 20.9 | |||||
Non-cash interest expense - other | 35.7 | 37.2 | |||||
Stock-based compensation | 17.2 | 16.4 | |||||
Deferred tax benefit | (36.0 | ) | (18.9 | ) | |||
Provision for doubtful accounts, net of adjustments | 20.8 | 10.9 | |||||
Excess income tax benefit from stock option exercises | (1.6 | ) | (2.4 | ) | |||
Asset impairments | 0.3 | 45.9 | |||||
Loss on extinguishment of debt | 112.6 | 207.3 | |||||
Gain on disposition of assets, net | (13.6 | ) | (34.8 | ) | |||
Withdrawal liability - Central States | 30.7 | — | |||||
Other non-cash items | — | (6.7 | ) | ||||
Change in assets and liabilities, net of effects from business acquisitions and divestitures: | |||||||
Accounts receivable | (47.3 | ) | (80.7 | ) | |||
Prepaid expenses and other assets | (19.2 | ) | 24.5 | ||||
Accounts payable | (37.2 | ) | 6.3 | ||||
Restructuring and synergy related expenditures | (68.1 | ) | (2.9 | ) | |||
Capping, closure and post-closure expenditures | (54.0 | ) | (73.3 | ) | |||
Remediation expenditures | (49.5 | ) | (26.7 | ) | |||
Other liabilities | 19.1 | 77.9 | |||||
Cash provided by operating activities | 1,056.7 | 1,286.8 | |||||
Cash used in investing activities: | |||||||
Purchases of property and equipment | (707.4 | ) | (696.1 | ) | |||
Proceeds from sales of property and equipment | 24.5 | 23.4 | |||||
Cash used in business acquisitions and development projects, net of cash acquired | (73.1 | ) | (40.8 | ) | |||
Cash proceeds from divestitures, net of cash divested | 9.6 | 14.2 | |||||
Change in restricted cash and marketable securities | 54.5 | 12.3 | |||||
Other | (0.3 | ) | (2.2 | ) | |||
Cash used in investing activities | (692.2 | ) | (689.2 | ) | |||
Cash used in financing activities: | |||||||
Proceeds from notes payable and long-term debt | 2,038.2 | 1,137.5 | |||||
Proceeds from issuance of senior notes, net of discount | 847.6 | 1,844.9 | |||||
Payments of notes payable and long-term debt | (2,799.3 | ) | (2,827.6 | ) | |||
Premiums paid on extinguishment of debt | (25.8 | ) | (89.6 | ) | |||
Fees paid to issue and retire senior notes and certain hedging relationships | (16.9 | ) | (58.8 | ) | |||
Issuances of common stock | 49.3 | 35.6 | |||||
Excess income tax benefit from stock option exercises | 1.6 | 2.4 | |||||
Purchases of common stock for treasury | (208.1 | ) | (429.9 | ) | |||
Cash dividends paid | (243.4 | ) | (227.8 | ) | |||
Cash used in financing activities | (356.8 | ) | (613.3 | ) | |||
Increase (decrease) in cash and cash equivalents | 7.7 | (15.7 | ) | ||||
Cash and cash equivalents at beginning of period | 66.3 | 88.3 | |||||
Cash and cash equivalents at end of period | $ | 74.0 | $ | 72.6 |
2012 | 2011 | ||||||
Purchase price: | |||||||
Cash used in acquisitions, net of cash acquired | $ | 73.1 | $ | 40.8 | |||
Fair value of operations surrendered | — | 47.8 | |||||
Holdbacks | 0.2 | 0.8 | |||||
Total | 73.3 | 89.4 | |||||
Allocated as follows: | |||||||
Working capital | 2.4 | 7.0 | |||||
Property and equipment | 22.9 | 43.9 | |||||
Other liabilities, net | (2.9 | ) | (8.5 | ) | |||
Value of assets acquired and liabilities assumed | 22.4 | 42.4 | |||||
Excess purchase price to be allocated | $ | 50.9 | $ | 47.0 | |||
Excess purchase price allocated as follows: | |||||||
Other intangible assets | $ | 13.7 | $ | 32.0 | |||
Goodwill | 37.2 | 15.0 | |||||
Total allocated | $ | 50.9 | $ | 47.0 |
Balance at December 31, 2011 | Acquisitions | Divestitures | Adjustments to Acquisitions | Balance at September 30, 2012 | |||||||||||||||
Eastern | $ | 2,798.0 | $ | 15.0 | $ | (3.9 | ) | $ | (0.5 | ) | $ | 2,808.6 | |||||||
Midwestern | 2,135.5 | 0.7 | — | (0.8 | ) | 2,135.4 | |||||||||||||
Southern | 2,705.0 | — | — | (0.4 | ) | 2,704.6 | |||||||||||||
Western | 3,008.5 | 21.5 | — | (0.4 | ) | 3,029.6 | |||||||||||||
Total | $ | 10,647.0 | $ | 37.2 | $ | (3.9 | ) | $ | (2.1 | ) | $ | 10,678.2 | |||||||
Balance at December 31, 2010 | Acquisitions | Divestitures | Adjustments to Acquisitions | Balance at September 30, 2011 | |||||||||||||||
Eastern | $ | 2,791.9 | $ | 7.0 | $ | (0.7 | ) | $ | (0.2 | ) | $ | 2,798.0 | |||||||
Midwestern | 2,129.6 | 4.8 | — | 0.7 | 2,135.1 | ||||||||||||||
Southern | 2,721.8 | 2.8 | (19.5 | ) | (0.1 | ) | 2,705.0 | ||||||||||||
Western | 3,012.0 | 0.4 | (3.6 | ) | (0.2 | ) | 3,008.6 | ||||||||||||
Total | $ | 10,655.3 | $ | 15.0 | $ | (23.8 | ) | $ | 0.2 | $ | 10,646.7 |
Gross Intangible Assets | Accumulated Amortization | Net Intangibles at September 30, 2012 | |||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | Acquisitions | Adjustments to Acquisitions | Divestitures | Balance at September 30, 2012 | Balance at December 31, 2011 | Additions Charged to Expense | Balance at September 30, 2012 | ||||||||||||||||||||||||||||
Customer relationships, franchise and other municipal agreements | $ | 566.2 | $ | 10.5 | $ | — | $ | (0.1 | ) | $ | 576.6 | $ | (194.4 | ) | $ | (43.8 | ) | $ | (238.2 | ) | $ | 338.4 | |||||||||||||
Trade names | 30.0 | — | — | — | 30.0 | (18.5 | ) | (4.5 | ) | (23.0 | ) | 7.0 | |||||||||||||||||||||||
Non-compete agreements | 16.9 | 2.5 | — | — | 19.4 | (9.3 | ) | (2.1 | ) | (11.4 | ) | 8.0 | |||||||||||||||||||||||
Other intangible assets | 62.9 | 0.7 | (0.1 | ) | — | 63.5 | (44.2 | ) | (0.8 | ) | (45.0 | ) | 18.5 | ||||||||||||||||||||||
Total | $ | 676.0 | $ | 13.7 | $ | (0.1 | ) | $ | (0.1 | ) | $ | 689.5 | $ | (266.4 | ) | $ | (51.2 | ) | $ | (317.6 | ) | $ | 371.9 | ||||||||||||
Gross Intangible Assets | Accumulated Amortization | Net Intangibles at September 30, 2011 | |||||||||||||||||||||||||||||||||
Balance at December 31, 2010 | Acquisitions | Adjustments to Acquisitions | Divestitures | Balance at September 30, 2011 | Balance at December 31, 2010 | Additions Charged to Expense | Balance at September 30, 2011 | ||||||||||||||||||||||||||||
Customer relationships, franchise and other municipal agreements | $ | 537.1 | $ | 28.3 | $ | — | $ | — | $ | 565.4 | $ | (130.7 | ) | $ | (47.4 | ) | $ | (178.1 | ) | $ | 387.3 | ||||||||||||||
Trade names | 30.0 | — | — | — | 30.0 | (12.5 | ) | (4.5 | ) | (17.0 | ) | 13.0 | |||||||||||||||||||||||
Non-compete agreements | 12.9 | 3.7 | — | — | 16.6 | (7.2 | ) | (1.5 | ) | (8.7 | ) | 7.9 | |||||||||||||||||||||||
Other intangibles assets | 62.9 | — | — | — | 62.9 | (41.2 | ) | (2.3 | ) | (43.5 | ) | 19.4 | |||||||||||||||||||||||
Total | $ | 642.9 | $ | 32.0 | $ | — | $ | — | $ | 674.9 | $ | (191.6 | ) | $ | (55.7 | ) | $ | (247.3 | ) | $ | 427.6 |
2012 | 2011 | ||||||
Inventories | $ | 35.5 | $ | 35.2 | |||
Prepaid expenses | 63.3 | 53.4 | |||||
Other non-trade receivables | 39.8 | 54.5 | |||||
Income tax receivable | 65.5 | 68.4 | |||||
Commodity and fuel hedge asset | 6.4 | 3.0 | |||||
Other current assets | 7.4 | 1.4 | |||||
Total | $ | 217.9 | $ | 215.9 |
2012 | 2011 | ||||||
Deferred financing costs | $ | 60.1 | $ | 54.6 | |||
Deferred compensation plan | 49.6 | 34.5 | |||||
Notes and other receivables | 35.5 | 31.6 | |||||
Reinsurance receivable | 63.2 | 58.0 | |||||
Other | 69.7 | 68.6 | |||||
Total | $ | 278.1 | $ | 247.3 |
2012 | 2011 | ||||||
Accrued payroll and benefits | $ | 136.8 | $ | 168.9 | |||
Accrued fees and taxes | 122.4 | 115.3 | |||||
Self-insurance reserves, current portion | 137.6 | 114.4 | |||||
Accrued dividends | 85.7 | 81.4 | |||||
Synergy incentive plan | — | 68.1 | |||||
Current tax liabilities | 0.8 | 29.4 | |||||
Accrued professional fees and legal settlement reserves | 30.8 | 80.3 | |||||
Other | 82.0 | 94.7 | |||||
Total | $ | 596.1 | $ | 752.5 |
2012 | 2011 | ||||||
Deferred compensation liability | $ | 49.8 | $ | 31.4 | |||
Pension and other postretirement liabilities | 40.4 | 46.8 | |||||
Legal settlement reserves | 42.9 | 59.3 | |||||
Ceded insurance reserves | 63.2 | 58.0 | |||||
Withdrawal liability - Central States | 30.7 | — | |||||
Other | 33.5 | 26.6 | |||||
Total | $ | 260.5 | $ | 222.1 |
2012 | 2011 | ||||||
Final capping, closure and post-closure liabilities | $ | 1,058.7 | $ | 1,037.0 | |||
Remediation | 546.3 | 543.7 | |||||
1,605.0 | 1,580.7 | ||||||
Less: Current portion | (185.4 | ) | (184.2 | ) | |||
Long-term portion | $ | 1,419.6 | $ | 1,396.5 |
2012 | 2011 | ||||||
Asset retirement obligation liabilities, beginning of year | $ | 1,037.0 | $ | 1,046.5 | |||
Non-cash additions | 25.8 | 25.5 | |||||
Acquisitions/divestitures and other adjustments | (1.4 | ) | 15.1 | ||||
Asset retirement obligation adjustments | (7.8 | ) | (23.6 | ) | |||
Payments | (54.0 | ) | (73.3 | ) | |||
Accretion expense | 59.1 | 58.6 | |||||
Asset retirement obligation liabilities, end of period | 1,058.7 | 1,048.8 | |||||
Less: Current portion | (98.3 | ) | (104.1 | ) | |||
Long-term portion | $ | 960.4 | $ | 944.7 |
2012 | 2011 | ||||||
Remediation liabilities, beginning of year | $ | 543.7 | $ | 552.1 | |||
Remediation adjustments | 28.1 | 4.7 | |||||
Payments | (49.5 | ) | (26.7 | ) | |||
Accretion expense (non-cash interest expense) | 24.0 | 24.8 | |||||
Remediation liabilities, end of period | 546.3 | 554.9 | |||||
Less: Current portion | (87.1 | ) | (86.1 | ) | |||
Long-term portion | $ | 459.2 | $ | 468.8 |
September 30, 2012 | December 31, 2011 | |||||||||||||||||||||||||
Maturity | Interest Rate | Principal | Discount | Carry Value | Principal | Discount | Carry Value | |||||||||||||||||||
Credit facilities: | ||||||||||||||||||||||||||
Uncommitted revolver | Variable | $ | 72.2 | $ | — | $ | 72.2 | $ | — | $ | — | $ | — | |||||||||||||
September 2013 | Variable | — | — | — | 17.2 | — | 17.2 | |||||||||||||||||||
April 2016 | Variable | — | — | — | 17.2 | — | 17.2 | |||||||||||||||||||
May 2017 | Variable | — | — | — | — | — | — | |||||||||||||||||||
Senior notes: | ||||||||||||||||||||||||||
June 2017 | 6.875 | — | — | — | 750.0 | (75.8 | ) | 674.2 | ||||||||||||||||||
May 2018 | 3.800 | 700.0 | (0.2 | ) | 699.8 | 700.0 | (0.2 | ) | 699.8 | |||||||||||||||||
September 2019 | 5.500 | 650.0 | (3.5 | ) | 646.5 | 650.0 | (3.8 | ) | 646.2 | |||||||||||||||||
March 2020 | 5.000 | 850.0 | (0.1 | ) | 849.9 | 850.0 | (0.1 | ) | 849.9 | |||||||||||||||||
November 2021 | 5.250 | 600.0 | — | 600.0 | 600.0 | — | 600.0 | |||||||||||||||||||
June 2022 | 3.550 | 850.0 | (2.3 | ) | 847.7 | — | — | — | ||||||||||||||||||
May 2023 | 4.750 | 550.0 | (1.3 | ) | 548.7 | 550.0 | (1.4 | ) | 548.6 | |||||||||||||||||
March 2035 | 6.086 | 275.7 | (25.1 | ) | 250.6 | 275.7 | (25.5 | ) | 250.2 | |||||||||||||||||
March 2040 | 6.200 | 650.0 | (0.5 | ) | 649.5 | 650.0 | (0.5 | ) | 649.5 | |||||||||||||||||
May 2041 | 5.700 | 600.0 | (3.4 | ) | 596.6 | 600.0 | (3.4 | ) | 596.6 | |||||||||||||||||
Debentures: | ||||||||||||||||||||||||||
May 2021 | 9.250 | 35.3 | (1.9 | ) | 33.4 | 35.3 | (2.0 | ) | 33.3 | |||||||||||||||||
September 2035 | 7.400 | 165.2 | (41.6 | ) | 123.6 | 165.2 | (41.9 | ) | 123.3 | |||||||||||||||||
Tax-exempt: | ||||||||||||||||||||||||||
2012 - 2035 | 0.190 - 5.625 | 1,097.9 | (0.5 | ) | 1,097.4 | 1,142.2 | (15.8 | ) | 1,126.4 | |||||||||||||||||
Other: | ||||||||||||||||||||||||||
2012 - 2042 | 5.000 - 11.900 | 88.5 | — | 88.5 | 89.4 | — | 89.4 | |||||||||||||||||||
Total Debt | $ | 7,184.8 | $ | (80.4 | ) | 7,104.4 | $ | 7,092.2 | $ | (170.4 | ) | 6,921.8 | ||||||||||||||
Less: Current portion | (44.4 | ) | (34.8 | ) | ||||||||||||||||||||||
Long-term portion | $ | 7,060.0 | $ | 6,887.0 |
Quarter | Principal Repaid | Cash Paid in Loss on Extinguishment of Debt | Non-cash Loss on Extinguishment of Debt | Total Loss on Extinguishment of Debt | ||||||||||||||
2012: | ||||||||||||||||||
Amendments to Credit Facilities | Second | $ | — | $ | — | $ | 1.5 | $ | 1.5 | |||||||||
$750.0 million 6.875% senior notes due June 2017 | Second | 750.0 | 25.8 | 71.0 | 96.8 | |||||||||||||
Tax-exempt financings | Second | 71.9 | — | 11.9 | 11.9 | |||||||||||||
Ineffective portion of interest rate lock settlements | Second | — | 0.1 | — | 0.1 | |||||||||||||
Tax-exempt financings | Third | 22.1 | — | 2.3 | 2.3 | |||||||||||||
Loss on extinguishment of debt for the nine months ended September 30, 2012 | $ | 25.9 | $ | 86.7 | $ | 112.6 | ||||||||||||
2011: | ||||||||||||||||||
$99.5 million 9.250% debentures due May 2021 | First | $ | 5.0 | $ | 1.5 | $ | 0.3 | $ | 1.8 | |||||||||
Amendments to Credit Facilities | Second | — | — | 1.7 | 1.7 | |||||||||||||
$600.0 million 7.125% senior notes due May 2016 | Second | 600.0 | 21.4 | 61.3 | 82.7 | |||||||||||||
$99.5 million 9.250% debentures due May 2021 | Second | 59.2 | 22.7 | 3.5 | 26.2 | |||||||||||||
$360.0 million 7.400% debentures due September 2035 | Second | 182.7 | 41.9 | 46.7 | 88.6 | |||||||||||||
Ineffective portion of interest rate lock settlements | Second | — | 0.3 | — | 0.3 | |||||||||||||
$360.0 million 7.400% debentures due September 2035 | Third | 12.0 | 2.8 | 3.2 | 6.0 | |||||||||||||
Loss on extinguishment of debt for the nine months ended September 30, 2011 | $ | 90.6 | $ | 116.7 | $ | 207.3 |
Number of Shares | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | |||||||||
Outstanding at December 31, 2011 | 14.3 | $ | 26.13 | |||||||||
Granted | 3.0 | 29.67 | ||||||||||
Exercised | (2.1 | ) | 22.39 | $ | 14.9 | |||||||
Forfeited or expired | (0.4 | ) | 29.06 | |||||||||
Outstanding at September 30, 2012 | 14.8 | $ | 27.31 | 4.2 | $ | 21.4 | ||||||
Exercisable at September 30, 2012 | 7.9 | $ | 26.15 | 3.2 | $ | 17.8 |
Number of Restricted Stock Units and Shares of Restricted Stock (in thousands) | Weighted Average Grant Date Fair Value per Share | Weighted Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | |||||||||
Other stock awards at December 31, 2011 | 770.0 | $ | 27.17 | |||||||||
Granted | 291.6 | 27.78 | ||||||||||
Vested and issued | (142.7 | ) | 26.84 | |||||||||
Forfeited | (1.3 | ) | 29.79 | |||||||||
Other stock awards at September 30, 2012 | 917.6 | $ | 27.41 | 0.6 | $ | 25.2 | ||||||
Vested and unissued at September 30, 2012 | 527.4 | $ | 26.94 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Basic earnings per share: | |||||||||||||||
Net income attributable to Republic Services, Inc. | $ | 152,700 | $ | 193,500 | $ | 444,800 | $ | 398,200 | |||||||
Weighted average common shares outstanding | 365,404 | 373,182 | 368,096 | 377,850 | |||||||||||
Basic earnings per share | $ | 0.42 | $ | 0.52 | $ | 1.21 | $ | 1.05 | |||||||
Diluted earnings per share: | |||||||||||||||
Net income attributable to Republic Services, Inc. | $ | 152,700 | $ | 193,500 | $ | 444,800 | $ | 398,200 | |||||||
Weighted average common shares outstanding | 365,404 | 373,182 | 368,096 | 377,850 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Options to purchase common stock | 880 | 1,351 | 1,061 | 1,628 | |||||||||||
Unvested restricted stock awards | 147 | 162 | 108 | 136 | |||||||||||
Weighted average common and common equivalent shares outstanding | 366,431 | 374,695 | 369,265 | 379,614 | |||||||||||
Diluted earnings per share | $ | 0.42 | $ | 0.52 | $ | 1.20 | $ | 1.05 | |||||||
Antidilutive securities not included in the diluted earnings per share calculations: | |||||||||||||||
Options to purchase common stock | 8,170 | 5,215 | 7,967 | 3,462 |
Inception Date | Commencement Date | Termination Date | Notional Amount (in Gallons per Month) | Contract Price per Gallon | |||||||
November 5, 2007 | January 5, 2009 | December 30, 2013 | 60,000 | $ | 3.28 | ||||||
March 17, 2008 | January 5, 2009 | December 31, 2012 | 50,000 | 3.72 | |||||||
March 17, 2008 | January 5, 2009 | December 31, 2012 | 50,000 | 3.74 | |||||||
July 10, 2009 | January 1, 2012 | December 31, 2012 | 100,000 | 3.20 | |||||||
August 8, 2011 | July 1, 2012 | December 31, 2012 | 500,000 | 3.84 | |||||||
August 8, 2011 | January 1, 2013 | December 31, 2013 | 500,000 | 3.83 | |||||||
August 8, 2011 | January 1, 2014 | December 31, 2014 | 500,000 | 3.82 | |||||||
August 8, 2011 | July 2, 2012 | December 31, 2012 | 500,000 | 3.84 | |||||||
August 8, 2011 | January 7, 2013 | December 30, 2013 | 500,000 | 3.82 | |||||||
August 9, 2011 | July 1, 2012 | December 31, 2012 | 250,000 | 3.80 | |||||||
August 9, 2011 | January 1, 2013 | December 31, 2013 | 250,000 | 3.83 | |||||||
August 9, 2011 | January 1, 2014 | December 31, 2014 | 250,000 | 3.82 | |||||||
August 9, 2011 | January 6, 2014 | December 29, 2014 | 500,000 | 3.83 | |||||||
September 30, 2011 | January 6, 2014 | December 29, 2014 | 250,000 | 3.69 | |||||||
September 30, 2011 | January 7, 2013 | December 30, 2013 | 250,000 | 3.70 | |||||||
October 3, 2011 | January 5, 2015 | December 28, 2015 | 250,000 | 3.68 |
Derivatives in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | Statement of Income Classification | Amount of Realized Gain | |||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
Fuel hedges | $ | 8.5 | $ | (6.1 | ) | Cost of operations | $ | 0.8 | $ | 0.3 | ||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
Fuel hedges | $ | 4.3 | $ | (4.5 | ) | Cost of operations | $ | 1.6 | $ | 0.7 |
Inception Date | Commencement Date | Termination Date | Transaction Hedged | Notional Amount (in Short Tons per Month) | Floor Strike Price Per Short Ton | Cap Strike Price Per Short Ton | |||||||||||
December 8, 2010 | January 1, 2011 | December 31, 2012 | OCC | 2,000 | $ | 80.00 | $ | 180.00 | |||||||||
December 8, 2010 | January 1, 2011 | December 31, 2012 | OCC | 2,000 | 86.00 | 210.00 | |||||||||||
December 8, 2010 | January 1, 2011 | December 31, 2012 | OCC | 2,000 | 81.00 | 190.00 | |||||||||||
December 8, 2010 | January 1, 2011 | December 31, 2012 | OCC | 2,000 | 85.00 | 195.00 | |||||||||||
December 8, 2010 | January 1, 2011 | December 31, 2012 | OCC | 2,000 | 87.00 | 195.00 | |||||||||||
January 19, 2011 | February 1, 2011 | December 31, 2012 | OCC | 2,500 | 90.00 | 155.00 | |||||||||||
January 19, 2011 | February 1, 2011 | December 31, 2012 | OCC | 2,500 | 90.00 | 155.00 | |||||||||||
April 15, 2011 | July 1, 2011 | December 31, 2012 | OCC | 2,000 | 90.00 | 155.00 | |||||||||||
April 15, 2011 | July 1, 2011 | December 31, 2012 | OCC | 2,000 | 90.00 | 155.00 | |||||||||||
January 11, 2012 | February 1, 2012 | December 31, 2012 | OCC | 1,000 | 85.00 | 135.00 | |||||||||||
January 11, 2012 | February 1, 2012 | December 31, 2012 | OCC | 1,000 | 85.00 | 135.00 | |||||||||||
January 11, 2012 | February 1, 2012 | December 31, 2012 | OCC | 1,000 | 80.00 | 125.00 | |||||||||||
January 31, 2012 | April 1, 2012 | March 31, 2013 | OCC | 2,000 | 85.00 | 136.00 | |||||||||||
January 31, 2012 | April 1, 2012 | March 31, 2013 | OCC | 2,000 | 85.00 | 165.00 | |||||||||||
January 31, 2012 | April 1, 2012 | March 31, 2013 | OCC | 2,000 | 85.00 | 156.00 | |||||||||||
April 26, 2011 | July 1, 2011 | December 31, 2012 | ONP | 1,000 | 90.00 | 165.00 | |||||||||||
April 26, 2011 | July 1, 2011 | December 31, 2012 | ONP | 1,000 | 90.00 | 165.00 | |||||||||||
August 1, 2011 | January 1, 2012 | December 31, 2012 | ONP | 2,000 | 85.00 | 135.00 | |||||||||||
August 1, 2011 | January 1, 2012 | December 31, 2012 | ONP | 2,000 | 85.00 | 135.00 | |||||||||||
January 31, 2012 | April 1, 2012 | March 31, 2013 | ONP | 2,000 | 80.00 | 106.00 | |||||||||||
January 31, 2012 | April 1, 2012 | March 31, 2013 | ONP | 2,000 | 80.00 | 110.00 | |||||||||||
January 31, 2012 | April 1, 2012 | March 31, 2013 | ONP | 2,000 | 80.00 | 110.00 | |||||||||||
June 7, 2012 | January 1, 2013 | December 31, 2013 | OCC | 2,000 | 90.00 | 138.00 | |||||||||||
June 7, 2012 | January 1, 2013 | December 31, 2013 | OCC | 2,000 | 95.00 | 140.00 | |||||||||||
June 7, 2012 | January 1, 2013 | December 31, 2013 | OCC | 2,000 | 95.00 | 148.00 | |||||||||||
August 21, 2012 | January 1, 2013 | December 31, 2013 | OCC | 2,500 | 80.00 | 128.00 | |||||||||||
August 21, 2012 | January 1, 2013 | December 31, 2013 | OCC | 2,500 | 80.00 | 128.00 | |||||||||||
August 21, 2012 | January 1, 2013 | December 31, 2013 | OCC | 2,500 | 75.00 | 123.00 |
Derivatives in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | Statement of Income Classification | Amount of Realized Gain (Loss) | |||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
Recycling commodity hedges | $ | 0.1 | $ | 0.6 | Revenue | $ | 1.4 | $ | (2.8 | ) | ||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
Recycling commodity hedges | $ | (0.4 | ) | $ | 0.2 | Revenue | $ | 1.6 | $ | (6.8 | ) |
Fair Value Measurements Using | |||||||||||||||
Total as of September 30, 2012 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Money market mutual funds | $ | 37.7 | $ | 37.7 | $ | — | $ | — | |||||||
Bonds | 45.3 | — | 45.3 | — | |||||||||||
Fuel hedges - other current assets | 4.3 | — | 4.3 | — | |||||||||||
Commodity hedges - other current assets | 2.1 | — | 2.1 | — | |||||||||||
Total assets | $ | 89.4 | $ | 37.7 | $ | 51.7 | $ | — | |||||||
Liabilities: | |||||||||||||||
Commodity hedges - other accrued liabilities | 1.9 | — | 1.9 | — | |||||||||||
Fair Value Measurements Using | |||||||||||||||
Total as of December 31, 2011 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Money market mutual funds | $ | 100.8 | $ | 100.8 | $ | — | $ | — | |||||||
Bonds | 34.6 | — | 34.6 | — | |||||||||||
Fuel hedges - other current assets | 1.6 | — | 1.6 | — | |||||||||||
Commodity hedges - other current assets | 1.4 | — | 1.4 | — | |||||||||||
Total assets | $ | 138.4 | $ | 100.8 | $ | 37.6 | $ | — | |||||||
Liabilities: | |||||||||||||||
Fuel hedges - other accrued liabilities | $ | 4.7 | $ | — | $ | 4.7 | $ | — | |||||||
Commodity hedges - other accrued liabilities | 0.7 | — | 0.7 | — | |||||||||||
Total liabilities | $ | 5.4 | $ | — | $ | 5.4 | $ | — |
Gross Revenue | Intercompany Revenue | Net Revenue | Depreciation, Amortization, Depletion and Accretion | Operating Income (Loss) | Capital Expenditures | Total Assets | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
September 30, 2012: | |||||||||||||||||||||||||||
Eastern | $ | 606.1 | $ | (90.6 | ) | $ | 515.5 | $ | 45.6 | $ | 111.9 | $ | 53.9 | $ | 4,456.1 | ||||||||||||
Midwestern | 553.3 | (103.6 | ) | 449.7 | 50.3 | 89.1 | 70.0 | 3,805.5 | |||||||||||||||||||
Southern | 599.1 | (83.9 | ) | 515.2 | 58.5 | 103.6 | 65.1 | 4,916.6 | |||||||||||||||||||
Western | 672.7 | (126.4 | ) | 546.3 | 55.8 | 114.9 | 58.0 | 5,612.3 | |||||||||||||||||||
Corporate entities | 23.6 | (3.4 | ) | 20.2 | 13.0 | (101.6 | ) | (2.1 | ) | 843.8 | |||||||||||||||||
Total | $ | 2,454.8 | $ | (407.9 | ) | $ | 2,046.9 | $ | 223.2 | $ | 317.9 | $ | 244.9 | $ | 19,634.3 | ||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
September 30, 2011: | |||||||||||||||||||||||||||
Eastern | $ | 638.6 | $ | (95.6 | ) | $ | 543.0 | $ | 52.7 | $ | 121.3 | $ | 56.8 | $ | 4,472.2 | ||||||||||||
Midwestern | 578.0 | (103.2 | ) | 474.8 | 54.6 | 101.2 | 55.3 | 3,812.7 | |||||||||||||||||||
Southern | 598.8 | (80.0 | ) | 518.8 | 57.6 | 118.6 | 57.2 | 4,892.5 | |||||||||||||||||||
Western | 670.7 | (117.1 | ) | 553.6 | 56.7 | 125.7 | 60.1 | 5,520.9 | |||||||||||||||||||
Corporate entities | 30.1 | (4.1 | ) | 26.0 | 12.8 | (58.3 | ) | (15.0 | ) | 757.9 | |||||||||||||||||
Total | $ | 2,516.2 | $ | (400.0 | ) | $ | 2,116.2 | $ | 234.4 | $ | 408.5 | $ | 214.4 | $ | 19,456.2 |
Gross Revenue | Intercompany Revenue | Net Revenue | Depreciation, Amortization, Depletion and Accretion | Operating Income (Loss) | Capital Expenditures | Total Assets | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||
September 30, 2012: | |||||||||||||||||||||||||||
Eastern | $ | 1,815.2 | $ | (269.7 | ) | $ | 1,545.5 | $ | 149.3 | $ | 328.1 | $ | 129.0 | $ | 4,456.1 | ||||||||||||
Midwestern | 1,634.7 | (302.8 | ) | 1,331.9 | 155.1 | 253.2 | 153.7 | 3,805.5 | |||||||||||||||||||
Southern | 1,795.4 | (251.6 | ) | 1,543.8 | 173.6 | 323.7 | 162.6 | 4,916.6 | |||||||||||||||||||
Western | 1,974.4 | (374.0 | ) | 1,600.4 | 164.6 | 327.9 | 185.5 | 5,612.3 | |||||||||||||||||||
Corporate entities | 78.7 | (10.4 | ) | 68.3 | 48.6 | (201.1 | ) | 76.6 | 843.8 | ||||||||||||||||||
Total | $ | 7,298.4 | $ | (1,208.5 | ) | $ | 6,089.9 | $ | 691.2 | $ | 1,031.8 | $ | 707.4 | $ | 19,634.3 | ||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||
September 30, 2011: | |||||||||||||||||||||||||||
Eastern | $ | 1,856.0 | $ | (274.5 | ) | $ | 1,581.5 | $ | 151.7 | $ | 375.7 | $ | 172.0 | $ | 4,472.2 | ||||||||||||
Midwestern | 1,654.6 | (294.2 | ) | 1,360.4 | 161.0 | 278.0 | 171.1 | 3,812.7 | |||||||||||||||||||
Southern | 1,764.0 | (236.4 | ) | 1,527.6 | 169.6 | 348.5 | 164.4 | 4,892.5 | |||||||||||||||||||
Western | 1,976.8 | (350.5 | ) | 1,626.3 | 167.7 | 366.6 | 184.8 | 5,520.9 | |||||||||||||||||||
Corporate entities | 84.2 | (12.3 | ) | 71.9 | 38.0 | (182.9 | ) | 3.8 | 757.9 | ||||||||||||||||||
Total | $ | 7,335.6 | $ | (1,167.9 | ) | $ | 6,167.7 | $ | 688.0 | $ | 1,185.9 | $ | 696.1 | $ | 19,456.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||
Collection: | |||||||||||||||||||||||||||
Residential | $ | 542.0 | 26.5 | % | $ | 538.3 | 25.4 | % | $ | 1,614.0 | 26.5 | % | $ | 1,601.6 | 26.0 | % | |||||||||||
Commercial | 632.4 | 30.9 | 625.9 | 29.6 | 1,884.4 | 30.9 | 1,871.5 | 30.3 | |||||||||||||||||||
Industrial | 395.9 | 19.3 | 397.5 | 18.8 | 1,154.7 | 19.0 | 1,141.7 | 18.5 | |||||||||||||||||||
Other | 8.4 | 0.4 | 8.5 | 0.4 | 24.9 | 0.4 | 24.4 | 0.4 | |||||||||||||||||||
Total collection | 1,578.7 | 77.1 | 1,570.2 | 74.2 | 4,678.0 | 76.8 | 4,639.2 | 75.2 | |||||||||||||||||||
Transfer | 247.7 | 258.8 | 721.4 | 750.9 | |||||||||||||||||||||||
Less: Intercompany | (146.4 | ) | (146.3 | ) | (427.5 | ) | (433.0 | ) | |||||||||||||||||||
Transfer, net | 101.3 | 5.0 | 112.5 | 5.3 | 293.9 | 4.8 | 317.9 | 5.2 | |||||||||||||||||||
Landfill | 477.7 | 496.4 | 1,408.7 | 1,400.3 | |||||||||||||||||||||||
Less: Intercompany | (218.2 | ) | (219.8 | ) | (650.0 | ) | (636.1 | ) | |||||||||||||||||||
Landfill, net | 259.5 | 12.7 | 276.6 | 13.1 | 758.7 | 12.5 | 764.2 | 12.4 | |||||||||||||||||||
Sale of recyclable materials | 78.4 | 3.8 | 120.0 | 5.7 | 266.5 | 4.4 | 341.2 | 5.5 | |||||||||||||||||||
Other non-core | 29.0 | 1.4 | 36.9 | 1.7 | 92.8 | 1.5 | 105.2 | 1.7 | |||||||||||||||||||
Other | 107.4 | 5.2 | 156.9 | 7.4 | 359.3 | 5.9 | 446.4 | 7.2 | |||||||||||||||||||
Total revenue | $ | 2,046.9 | 100.0 | % | $ | 2,116.2 | 100.0 | % | $ | 6,089.9 | 100.0 | % | $ | 6,167.7 | 100.0 | % |
September 30, 2012 | December 31, 2011 | ||||||
Financing proceeds | $ | 0.1 | $ | 22.5 | |||
Capping, closure and post-closure obligations | 54.2 | 54.9 | |||||
Self-insurance | 75.6 | 75.2 | |||||
Other | 3.0 | 37.0 | |||||
Total restricted cash and marketable securities | $ | 132.9 | $ | 189.6 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||
Revenue | $ | 2,046.9 | 100.0 | % | $ | 2,116.2 | 100.0 | % | $ | 6,089.9 | 100.0 | % | $ | 6,167.7 | 100.0 | % | ||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Cost of operations | 1,280.5 | 62.6 | 1,260.0 | 59.6 | 3,722.2 | 61.1 | 3,657.5 | 59.3 | ||||||||||||||||||||||||
Depreciation, amortization and depletion of property and equipment | 186.1 | 9.1 | 195.5 | 9.2 | 579.2 | 9.5 | 572.3 | 9.3 | ||||||||||||||||||||||||
Amortization of other intangible assets and other assets | 17.4 | 0.9 | 19.5 | 0.9 | 52.9 | 0.9 | 57.1 | 0.9 | ||||||||||||||||||||||||
Accretion | 19.7 | 0.9 | 19.4 | 0.9 | 59.1 | 1.0 | 58.6 | 1.0 | ||||||||||||||||||||||||
Selling, general and administrative | 193.8 | 9.5 | 207.5 | 9.8 | 613.5 | 10.1 | 611.5 | 9.9 | ||||||||||||||||||||||||
Negotiation and withdrawal costs - Central States | 31.3 | 1.5 | — | — | 34.6 | 0.6 | — | — | ||||||||||||||||||||||||
Loss (gain) on disposition of assets and impairments, net | 0.2 | — | 5.8 | 0.3 | (3.4 | ) | (0.1 | ) | 24.8 | 0.4 | ||||||||||||||||||||||
Operating income | $ | 317.9 | 15.5 | % | $ | 408.5 | 19.3 | % | $ | 1,031.8 | 16.9 | % | $ | 1,185.9 | 19.2 | % | ||||||||||||||||
Three Months Ended September 30, 2012 | Three Months Ended September 30, 2011 | ||||||||||||||||||||||||
Net | Diluted | Net | Diluted | ||||||||||||||||||||||
Pre-tax | Income - | Earnings | Pre-tax | Income - | Earnings | ||||||||||||||||||||
Income | Republic | per Share | Income | Republic | per Share | ||||||||||||||||||||
As reported | $ | 223.1 | $ | 152.7 | $ | 0.42 | $ | 296.0 | $ | 193.5 | $ | 0.52 | |||||||||||||
Negotiation and withdrawal costs - Central States | 31.3 | 18.6 | 0.05 | — | — | — | |||||||||||||||||||
Loss on extinguishment of debt | 2.3 | 1.3 | — | 6.0 | 5.8 | 0.01 | |||||||||||||||||||
(Gain) loss on disposition of assets and impairments, net | 0.1 | (1.9 | ) | — | 5.8 | (0.8 | ) | — | |||||||||||||||||
Adjusted | $ | 256.8 | $ | 170.7 | $ | 0.47 | $ | 307.8 | $ | 198.5 | $ | 0.53 | |||||||||||||
Nine Months Ended September 30, 2012 | Nine Months Ended September 30, 2011 | ||||||||||||||||||||||||
Net | Diluted | Net | Diluted | ||||||||||||||||||||||
Pre-tax | Income - | Earnings | Pre-tax | Income - | Earnings | ||||||||||||||||||||
Income | Republic | per Share | Income | Republic | per Share | ||||||||||||||||||||
As reported | $ | 624.8 | $ | 444.8 | $ | 1.20 | $ | 647.3 | $ | 398.2 | $ | 1.05 | |||||||||||||
Negotiation and withdrawal costs - Central States | 34.6 | 20.6 | 0.06 | — | — | — | |||||||||||||||||||
Loss on extinguishment of debt | 112.6 | 68.7 | 0.19 | 207.3 | 127.3 | 0.33 | |||||||||||||||||||
(Gain) loss on disposition of assets and impairments, net | (3.6 | ) | (4.1 | ) | (0.01 | ) | 24.8 | 17.6 | 0.05 | ||||||||||||||||
Adjusted | $ | 768.4 | $ | 530.0 | $ | 1.44 | $ | 879.4 | $ | 543.1 | $ | 1.43 | |||||||||||||
(Anticipated) Year Ending | ||
December 31, 2012 | ||
Diluted earnings per share | $ 1.58 - 1.60 | |
Loss on extinguishment of debt | 0.19 | |
Negotiation and withdrawal costs - Central States | 0.06 | |
Restructuring expenses | 0.03 | |
Gain on disposition of assets and impairments, net | (0.01 | ) |
Adjusted diluted earnings per share | $ 1.85 - 1.87 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||
Collection: | ||||||||||||||||||||||||||||||||
Residential | $ | 542.0 | 26.5 | % | $ | 538.3 | 25.4 | % | $ | 1,614.0 | 26.5 | % | $ | 1,601.6 | 26.0 | % | ||||||||||||||||
Commercial | 632.4 | 30.9 | 625.9 | 29.6 | 1,884.4 | 30.9 | 1,871.5 | 30.3 | ||||||||||||||||||||||||
Industrial | 395.9 | 19.3 | 397.5 | 18.8 | 1,154.7 | 19.0 | 1,141.7 | 18.5 | ||||||||||||||||||||||||
Other | 8.4 | 0.4 | 8.5 | 0.4 | 24.9 | 0.4 | 24.4 | 0.4 | ||||||||||||||||||||||||
Total collection | 1,578.7 | 77.1 | 1,570.2 | 74.2 | 4,678.0 | 76.8 | 4,639.2 | 75.2 | ||||||||||||||||||||||||
Transfer | 247.7 | 258.8 | 721.4 | 750.9 | ||||||||||||||||||||||||||||
Less: Intercompany | (146.4 | ) | (146.3 | ) | (427.5 | ) | (433.0 | ) | ||||||||||||||||||||||||
Transfer, net | 101.3 | 5.0 | 112.5 | 5.3 | 293.9 | 4.8 | 317.9 | 5.2 | ||||||||||||||||||||||||
Landfill | 477.7 | 496.4 | 1,408.7 | 1,400.3 | ||||||||||||||||||||||||||||
Less: Intercompany | (218.2 | ) | (219.8 | ) | (650.0 | ) | (636.1 | ) | ||||||||||||||||||||||||
Landfill, net | 259.5 | 12.7 | 276.6 | 13.1 | 758.7 | 12.5 | 764.2 | 12.4 | ||||||||||||||||||||||||
Sale of recyclable materials | 78.4 | 3.8 | 120.0 | 5.7 | 266.5 | 4.4 | 341.2 | 5.5 | ||||||||||||||||||||||||
Other non-core | 29.0 | 1.4 | 36.9 | 1.7 | 92.8 | 1.5 | 105.2 | 1.7 | ||||||||||||||||||||||||
Other | 107.4 | 5.2 | 156.9 | 7.4 | 359.3 | 5.9 | 446.4 | 7.2 | ||||||||||||||||||||||||
Total revenue | $ | 2,046.9 | 100.0 | % | $ | 2,116.2 | 100.0 | % | $ | 6,089.9 | 100.0 | % | $ | 6,167.7 | 100.0 | % | ||||||||||||||||
• | approximately 65% are price changes based upon fluctuation in a specific index as defined in the contract (primarily based on consumer price index); |
• | approximately 15% are fixed price increases based on stated contract terms; or |
• | approximately 20% are price changes based on a cost plus a specific profit margin or other measurement. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
Core price | 1.0 | % | 0.7 | % | 0.7 | % | 0.9 | % | ||||
Fuel surcharges | (0.4 | ) | 1.2 | — | 1.0 | |||||||
Total price | 0.6 | 1.9 | 0.7 | 1.9 | ||||||||
Volume | (2.1 | ) | 0.3 | (1.1 | ) | (0.5 | ) | |||||
Recycling commodities | (2.0 | ) | 1.7 | (1.3 | ) | 1.4 | ||||||
San Mateo and Toronto contract losses | — | (1.4 | ) | — | (1.4 | ) | ||||||
Total internal growth | (3.5 | ) | 2.5 | (1.7 | ) | 1.4 | ||||||
Acquisitions / divestitures, net | 0.2 | 0.1 | 0.4 | (0.1 | ) | |||||||
Total | (3.3 | )% | 2.6 | % | (1.3 | )% | 1.3 | % | ||||
• | Core price increased revenue by 1.0% and 0.7%, respectively, due to positive pricing in all lines of business. |
• | Volume decreased revenue by 2.1% (including 0.5% due to one less workday) and 1.1%, respectively. Volume declines were primarily in our industrial collection, landfill and transfer station lines of business due to the acquisition of a large national broker by our competitor, the loss of a large national accounts contract and the loss of certain municipal disposal contracts. We also experienced decreases in special waste and construction and demolition volumes in our landfill line of business. |
• | Recycling commodities decreased revenue by 2.0% and 1.3%, respectively, primarily due to the change in the market price of materials. Average prices for old corrugated cardboard (OCC) for the three and nine months ended September 30, 2012 were $110.13 and $127.89 per ton versus $172.57 and $165.04 per ton for the comparable 2011 periods, a decrease of $62.44 and $37.15 per ton or 36.2% and 22.5%, respectively. Average prices of old newspaper (ONP) for the three and nine months ended September 30, 2012 were $92.45 and $104.46 per ton versus $152.93 and $150.59 per ton for the comparable 2011 periods, a decrease of $60.48 and $46.13 per ton or 39.5% and 30.6%, respectively. The declines in prices were partially offset by increased volumes processed. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||
Labor and related benefits | $ | 393.0 | 19.2 | % | $ | 387.7 | 18.3 | % | $ | 1,172.4 | 19.3 | % | $ | 1,148.4 | 18.6 | % | ||||||||||||||||
Transfer and disposal costs | 159.3 | 7.8 | 166.9 | 7.9 | 460.3 | 7.6 | 483.2 | 7.8 | ||||||||||||||||||||||||
Maintenance and repairs | 175.1 | 8.5 | 166.0 | 7.8 | 511.7 | 8.4 | 471.4 | 7.6 | ||||||||||||||||||||||||
Transportation and subcontract costs | 108.4 | 5.3 | 118.2 | 5.6 | 324.5 | 5.3 | 330.2 | 5.4 | ||||||||||||||||||||||||
Fuel | 132.3 | 6.5 | 133.3 | 6.3 | 395.5 | 6.5 | 388.2 | 6.3 | ||||||||||||||||||||||||
Franchise fees and taxes | 102.6 | 5.0 | 103.7 | 4.9 | 302.2 | 4.9 | 296.2 | 4.8 | ||||||||||||||||||||||||
Landfill operating costs | 70.6 | 3.4 | 34.0 | 1.6 | 129.6 | 2.1 | 92.9 | 1.5 | ||||||||||||||||||||||||
Risk management | 44.3 | 2.2 | 39.9 | 1.9 | 132.0 | 2.2 | 129.9 | 2.1 | ||||||||||||||||||||||||
Cost of goods sold | 25.3 | 1.3 | 41.8 | 2.0 | 89.9 | 1.5 | 113.8 | 1.9 | ||||||||||||||||||||||||
Other | 69.6 | 3.4 | 68.5 | 3.2 | 204.1 | 3.3 | 203.3 | 3.3 | ||||||||||||||||||||||||
Total cost of operations | $ | 1,280.5 | 62.6 | % | $ | 1,260.0 | 59.5 | % | $ | 3,722.2 | 61.1 | % | $ | 3,657.5 | 59.3 | % | ||||||||||||||||
• | Labor and related benefits increased due to wage increases during the three and nine months ended September 30, 2012 versus the comparable 2011 periods. As a percentage of revenue, labor and related benefits were negatively impacted by the relative mix of higher collection revenue and lower recycling revenue versus the comparable 2011 periods. |
• | Maintenance and repairs expense increased due to the increased cost of tires and costs associated with our fleet maintenance initiatives as well as container refurbishment expenses. |
• | Our fuel costs in aggregate dollars decreased $1.0 million during the three months ended September 30, 2012 versus the comparable 2011 period due to lower fuel consumption levels. For the nine months ended September 30, 2012, our fuel costs in aggregate dollars and as a percentage revenue increased $7.3 million and 0.2% versus the comparable 2011 period primarily due to higher prices. Average fuel costs per gallon for the three months ended September 30, 2012 were $3.94 versus $3.87 for the comparable 2011 period, an increase of $0.07 or 1.8%. Average fuel costs per gallon for the nine months ended September 30, 2012 were $3.95 versus $3.84 for the comparable 2011 period, an increase of $0.11 or 2.9%. |
• | Franchise fees and taxes increased during the nine months ended September 30, 2012 primarily due to the acquisition of businesses in franchise markets. |
• | Landfill operating expenses in aggregate dollars and as a percentage of revenue increased $36.6 million and 1.8% and $36.7 million and 0.6%, respectively, for the three and nine months ended September 30, 2012 versus the comparable 2011 periods, primarily due to $37.1 million of remediation charge we recorded in connection with environmental conditions at our closed disposal facility in Missouri. |
• | Transfer and disposal costs decreased during the three and nine months ended September 30, 2012 versus the comparable 2011 periods, primarily due to lower disposal prices and lower volumes disposed at third party sites. During the three and nine months ended September 30, 2012, approximately 67% of the total waste volume we collected was disposed at landfill sites that we own or operate (internalization), versus 66% for the comparable 2011 periods. |
• | Transportation and subcontract costs decreased during the three and nine months ended September 30, 2012 versus the comparable 2011 periods, primarily due to the loss of a large national accounts contract. |
• | Cost of goods sold in aggregate dollars and as a percentage of revenue decreased $16.5 million and 0.7% and $23.9 million and 0.4%, respectively, for the three and nine months ended September 30, 2012 versus the comparable 2011 periods, primarily due to a decline in market value of recycled commodities and the loss of a large national accounts contract offset by an increase in the volume of commodities processed. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||
Depreciation and amortization of property and equipment | $ | 130.3 | 6.4 | % | $ | 128.3 | 6.0 | % | $ | 387.9 | 6.4 | % | $ | 384.3 | 6.2 | % | ||||||||||||||||
Landfill depletion and amortization | 55.8 | 2.7 | 67.2 | 3.2 | 191.3 | 3.1 | 188.0 | 3.1 | ||||||||||||||||||||||||
Depreciation, amortization and depletion expense | $ | 186.1 | 9.1 | % | $ | 195.5 | 9.2 | % | $ | 579.2 | 9.5 | % | $ | 572.3 | 9.3 | % | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||
Salaries | $ | 120.5 | 5.9 | % | $ | 133.7 | 6.3 | % | $ | 408.3 | 6.7 | % | $ | 399.5 | 6.5 | % | ||||||||||||||||
Provision for doubtful accounts | 8.0 | 0.4 | 4.8 | 0.2 | 20.8 | 0.3 | 10.9 | 0.2 | ||||||||||||||||||||||||
Other | 65.3 | 3.2 | 69.0 | 3.3 | 184.4 | 3.1 | 201.1 | 3.2 | ||||||||||||||||||||||||
Total selling, general and administrative expenses | $ | 193.8 | 9.5 | % | $ | 207.5 | 9.8 | % | $ | 613.5 | 10.1 | % | $ | 611.5 | 9.9 | % | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Interest expense on debt and capital lease obligations | $ | 82.1 | $ | 93.1 | $ | 256.2 | $ | 282.6 | ||||||||
Accretion of debt discounts | 1.8 | 4.8 | 10.5 | 20.9 | ||||||||||||
Accretion of environmental and self-funded risk reserves | 11.9 | 12.7 | 35.7 | 37.2 | ||||||||||||
Less: capitalized interest | (2.6 | ) | (2.3 | ) | (6.1 | ) | (5.3 | ) | ||||||||
Total interest expense | $ | 93.2 | $ | 108.3 | $ | 296.3 | $ | 335.4 | ||||||||
Expected | ||||||||
Accretion | ||||||||
Remaining | Over the Next | |||||||
Discount | Twelve Months | |||||||
$99.5 million 9.250% debentures due May 2021 | $ | 1.9 | $ | 0.1 | ||||
$360.0 million 7.400% debentures due September 2035 | 41.6 | 0.5 | ||||||
Other, maturing 2014 | 0.5 | 0.4 | ||||||
Total | $ | 44.0 | $ | 1.0 | ||||
Quarter | Principal Repaid | Cash Paid in Loss on Extinguishment of Debt | Non-cash Loss on Extinguishment of Debt | Total Loss on Extinguishment of Debt | ||||||||||||||
2012: | ||||||||||||||||||
Amendments to Credit Facilities | Second | $ | — | $ | — | $ | 1.5 | $ | 1.5 | |||||||||
$750.0 million 6.875% senior notes due June 2017 | Second | 750.0 | 25.8 | 71.0 | 96.8 | |||||||||||||
Tax-exempt financings | Second | 71.9 | — | 11.9 | 11.9 | |||||||||||||
Ineffective portion of interest rate lock settlements | Second | — | 0.1 | — | 0.1 | |||||||||||||
Tax exempt financings | Third | 22.1 | — | 2.3 | 2.3 | |||||||||||||
Loss on extinguishment of debt for the nine months ended September 30, 2012 | $ | 25.9 | $ | 86.7 | $ | 112.6 | ||||||||||||
2011: | ||||||||||||||||||
$99.5 million 9.250% debentures due May 2021 | First | $ | 5.0 | $ | 1.5 | $ | 0.3 | $ | 1.8 | |||||||||
Amendments to Credit Facilities | Second | — | — | 1.7 | 1.7 | |||||||||||||
$600.0 million 7.125% senior notes due May 2016 | Second | 600.0 | 21.4 | 61.3 | 82.7 | |||||||||||||
$99.5 million 9.250% debentures due May 2021 | Second | 59.2 | 22.7 | 3.5 | 26.2 | |||||||||||||
$360.0 million 7.400% debentures due September 2035 | Second | 182.7 | 41.9 | 46.7 | 88.6 | |||||||||||||
Ineffective portion of interest rate lock settlements | Second | — | 0.3 | — | 0.3 | |||||||||||||
$360.0 million 7.400% debentures due September 2035 | Third | 12.0 | 2.8 | 3.2 | 6.0 | |||||||||||||
Loss on extinguishment of debt for the nine months ended September 30, 2011 | $ | 90.6 | $ | 116.7 | $ | 207.3 |
Net Revenue | Depreciation, Amortization, Depletion and Accretion Before Adjustments for Asset Retirement Obligations | Adjustments to Amortization Expense for Asset Retirement Obligations | Depreciation, Amortization, Depletion and Accretion | Gain (Loss) on Disposition of Assets, Net and Asset Impairment | Operating Income (Loss) | Operating Margin | ||||||||||||||||||||
Three Months Ended September 30, 2012: | ||||||||||||||||||||||||||
Eastern | $ | 515.5 | $ | 53.2 | $ | (7.6 | ) | $ | 45.6 | $ | (0.1 | ) | $ | 111.9 | 21.7 | % | ||||||||||
Midwestern | 449.7 | 52.4 | (2.1 | ) | 50.3 | (0.1 | ) | 89.1 | 19.8 | |||||||||||||||||
Southern | 515.2 | 58.5 | — | 58.5 | — | 103.6 | 20.1 | |||||||||||||||||||
Western | 546.3 | 56.4 | (0.6 | ) | 55.8 | — | 114.9 | 21.0 | ||||||||||||||||||
Corporate entities | 20.2 | 12.9 | 0.1 | 13.0 | — | (101.6 | ) | — | ||||||||||||||||||
Total | $ | 2,046.9 | $ | 233.4 | $ | (10.2 | ) | $ | 223.2 | $ | (0.2 | ) | $ | 317.9 | 15.5 | % | ||||||||||
Three Months Ended September 30, 2011: | ||||||||||||||||||||||||||
Eastern | $ | 543.0 | $ | 55.0 | $ | (2.3 | ) | $ | 52.7 | $ | (5.3 | ) | $ | 121.3 | 22.3 | % | ||||||||||
Midwestern | 474.8 | 55.0 | (0.4 | ) | 54.6 | 0.4 | 101.2 | 21.3 | ||||||||||||||||||
Southern | 518.8 | 58.1 | (0.5 | ) | 57.6 | (0.2 | ) | 118.6 | 22.9 | |||||||||||||||||
Western | 553.6 | 57.1 | (0.4 | ) | 56.7 | 0.5 | 125.7 | 22.7 | ||||||||||||||||||
Corporate entities | 26.0 | 12.8 | — | 12.8 | (1.2 | ) | (58.3 | ) | — | |||||||||||||||||
Total | $ | 2,116.2 | $ | 238.0 | $ | (3.6 | ) | $ | 234.4 | $ | (5.8 | ) | $ | 408.5 | 19.3 | % |
Net Revenue | Depreciation, Amortization, Depletion and Accretion Before Adjustments for Asset Retirement Obligations | Adjustments to Amortization Expense for Asset Retirement Obligations | Depreciation, Amortization, Depletion and Accretion | Gain (Loss) on Disposition of Assets, Net and Asset Impairment | Operating Income (Loss) | Operating Margin | ||||||||||||||||||||
Nine Months Ended September 30, 2012: | ||||||||||||||||||||||||||
Eastern | $ | 1,545.5 | $ | 157.2 | $ | (7.9 | ) | $ | 149.3 | $ | 3.0 | $ | 328.1 | 21.2 | % | |||||||||||
Midwestern | 1,331.9 | 157.2 | (2.1 | ) | 155.1 | (0.1 | ) | 253.2 | 19.0 | |||||||||||||||||
Southern | 1,543.8 | 173.9 | (0.3 | ) | 173.6 | 0.5 | 323.7 | 21.0 | ||||||||||||||||||
Western | 1,600.4 | 165.2 | (0.6 | ) | 164.6 | — | 327.9 | 20.5 | ||||||||||||||||||
Corporate entities | 68.3 | 38.6 | 10.0 | 48.6 | — | (201.1 | ) | — | ||||||||||||||||||
Total | $ | 6,089.9 | $ | 692.1 | $ | (0.9 | ) | $ | 691.2 | $ | 3.4 | $ | 1,031.8 | 16.9 | % | |||||||||||
Nine Months Ended September 30, 2011: | ||||||||||||||||||||||||||
Eastern | $ | 1,581.5 | $ | 160.7 | $ | (9.0 | ) | $ | 151.7 | $ | (8.9 | ) | $ | 375.7 | 23.8 | % | ||||||||||
Midwestern | 1,360.4 | 161.4 | (0.4 | ) | 161.0 | (0.2 | ) | 278.0 | 20.4 | |||||||||||||||||
Southern | 1,527.6 | 170.2 | (0.6 | ) | 169.6 | (11.9 | ) | 348.5 | 22.8 | |||||||||||||||||
Western | 1,626.3 | 168.6 | (0.9 | ) | 167.7 | (4.9 | ) | 366.6 | 22.5 | |||||||||||||||||
Corporate entities | 71.9 | 38.0 | — | 38.0 | 1.1 | (182.9 | ) | — | ||||||||||||||||||
Total | $ | 6,167.7 | $ | 698.9 | $ | (10.9 | ) | $ | 688.0 | $ | (24.8 | ) | $ | 1,185.9 | 19.2 | % |
Balance as of December 31, 2011 | New Expansions Undertaken | Permits Granted, Net of Closures | Airspace Consumed | Changes in Engineering Estimates | Balance as of September 30, 2012 | ||||||||||||
Cubic yards (in millions): | |||||||||||||||||
Permitted airspace | 4,621.8 | 23.3 | (55.8 | ) | (0.4 | ) | 4,588.9 | ||||||||||
Probable expansion airspace | 166.5 | 113.1 | (17.2 | ) | — | — | 262.4 | ||||||||||
Total cubic yards (in millions) | 4,788.3 | 113.1 | 6.1 | (55.8 | ) | (0.4 | ) | 4,851.3 | |||||||||
Number of sites: | |||||||||||||||||
Permitted airspace | 191 | 191 | |||||||||||||||
Probable expansion airspace | 8 | 4 | (1 | ) | 11 |
Balance as of December 31, 2011 | Capital Additions | Retirements | Acquisitions, Net of Divestitures | Non-cash Additions for Asset Retirement Obligations | Impairments, Transfers and Other Adjustments | Adjustments for Asset Retirement Obligations | Balance as of September 30, 2012 | ||||||||||||||||||||||||
Non-depletable landfill land | $ | 161.8 | $ | 3.2 | $ | (0.3 | ) | $ | — | $ | — | $ | 1.3 | $ | — | $ | 166.0 | ||||||||||||||
Landfill development costs | 4,763.3 | 7.5 | — | (0.3 | ) | 25.8 | 65.2 | (7.8 | ) | 4,853.7 | |||||||||||||||||||||
Construction-in-progress - landfill | 187.3 | 206.1 | — | — | — | (163.8 | ) | — | 229.6 | ||||||||||||||||||||||
Accumulated depletion and amortization | (1,735.7 | ) | (192.2 | ) | — | 0.3 | — | 96.5 | 0.8 | (1,830.3 | ) | ||||||||||||||||||||
Net investment in landfill land and development costs | $ | 3,376.7 | $ | 24.6 | $ | (0.3 | ) | $ | — | $ | 25.8 | $ | (0.8 | ) | $ | (7.0 | ) | $ | 3,419.0 |
Balance as of September 30, 2012 | Expected Future Investment | Total Expected Investment | |||||||||
Non-depletable landfill land | $ | 166.0 | — | $ | 166.0 | ||||||
Landfill development costs | 4,853.7 | 6,577.5 | 11,431.2 | ||||||||
Construction-in-progress - landfill | 229.6 | — | 229.6 | ||||||||
Accumulated depletion and amortization | (1,830.3 | ) | — | (1,830.3 | ) | ||||||
Net investment in landfill land and development costs | $ | 3,419.0 | $ | 6,577.5 | $ | 9,996.5 |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Number of landfills owned or operated | 191 | 192 | |||||
Net investment, excluding non-depletable land (in millions) | $ | 3,253.0 | $ | 3,209.2 | |||
Total estimated available disposal capacity (in millions of cubic yards) | 4,851.3 | 4,788.3 | |||||
Net investment per cubic yard | $ | 0.67 | $ | 0.67 | |||
Landfill depletion and amortization expense (in millions) | $ | 191.3 | $ | 188.0 | |||
Accretion expense (in millions) | 59.1 | 58.6 | |||||
$ | 250.4 | $ | 246.6 | ||||
Airspace consumed (in millions of cubic yards) | 55.8 | 60.1 | |||||
Depletion, amortization and accretion expense per cubic yard of airspace | $ | 4.49 | $ | 4.10 |
Allowance for Doubtful Accounts | Final Capping, Closure and Post-Closure | Remediation | Self- Insurance | ||||||||||||
Balance, December 31, 2011 | $ | 48.1 | $ | 1,037.0 | $ | 543.7 | $ | 418.3 | |||||||
Non-cash additions | — | 25.8 | — | — | |||||||||||
Acquisitions/divestitures and other adjustments | — | (1.4 | ) | — | — | ||||||||||
Asset retirement obligation adjustments | — | (7.8 | ) | — | — | ||||||||||
Accretion expense | — | 59.1 | 24.0 | 3.3 | |||||||||||
Additions charged to expense | 20.8 | — | 28.1 | 286.3 | |||||||||||
Payments or usage | (24.1 | ) | (54.0 | ) | (49.5 | ) | (282.2 | ) | |||||||
Balance, September 30, 2012 | 44.8 | 1,058.7 | 546.3 | 425.7 | |||||||||||
Less: current portion | (44.8 | ) | (98.3 | ) | (87.1 | ) | (137.6 | ) | |||||||
Long-term portion | $ | — | $ | 960.4 | $ | 459.2 | $ | 288.1 |
Allowance for Doubtful Accounts | Final Capping, Closure and Post-Closure | Remediation | Self- Insurance | ||||||||||||
Balance, December 31, 2010 | $ | 50.9 | $ | 1,046.5 | $ | 552.1 | $ | 417.2 | |||||||
Non-cash additions | — | 25.5 | — | — | |||||||||||
Acquisition and other adjustments | — | 15.1 | — | — | |||||||||||
Asset retirement obligation adjustments | — | (23.6 | ) | — | — | ||||||||||
Accretion expense | — | 58.6 | 24.8 | 4.4 | |||||||||||
Additions charged to expense | 10.9 | — | 4.7 | 275.0 | |||||||||||
Payments or usage | (15.7 | ) | (73.3 | ) | (26.7 | ) | (276.4 | ) | |||||||
Balance, September 30, 2011 | 46.1 | 1,048.8 | 554.9 | 420.2 | |||||||||||
Less: Current portion | (46.1 | ) | (104.1 | ) | (86.1 | ) | (119.1 | ) | |||||||
Long-term portion | $ | — | $ | 944.7 | $ | 468.8 | $ | 301.1 |
Gross Property and Equipment | |||||||||||||||||||||||||||||||
Balance as of December 31, 2011 | Capital Additions | Retirements | Acquisitions, Net of Divestitures | Non-cash Additions for Asset Retirement Obligations | Adjustments for Asset Retirement Obligations | Impairments, Transfers and Other Adjustments | Balance as of September 30, 2012 | ||||||||||||||||||||||||
Other land | $ | 375.1 | $ | — | $ | (1.4 | ) | $ | 3.6 | $ | — | $ | — | $ | — | $ | 377.3 | ||||||||||||||
Non-depletable landfill land | 161.8 | 3.2 | (0.3 | ) | — | — | — | 1.3 | 166.0 | ||||||||||||||||||||||
Landfill development costs | 4,763.3 | 7.5 | — | (0.3 | ) | 25.8 | (7.8 | ) | 65.2 | 4,853.7 | |||||||||||||||||||||
Vehicles and equipment | 4,515.1 | 366.9 | (63.5 | ) | 6.7 | — | — | 34.8 | 4,860.0 | ||||||||||||||||||||||
Buildings and improvements | 802.8 | 20.9 | (13.3 | ) | 7.1 | — | — | 19.9 | 837.4 | ||||||||||||||||||||||
Construction-in- progress - landfill | 187.3 | 206.1 | — | — | — | — | (163.8 | ) | 229.6 | ||||||||||||||||||||||
Construction-in- progress - other | 47.3 | 69.1 | — | — | — | — | (54.7 | ) | 61.7 | ||||||||||||||||||||||
Total | $ | 10,852.7 | $ | 673.7 | $ | (78.5 | ) | $ | 17.1 | $ | 25.8 | $ | (7.8 | ) | $ | (97.3 | ) | $ | 11,385.7 |
Accumulated Depreciation, Amortization and Depletion | |||||||||||||||||||||||||||
Balance as of December 31, 2011 | Additions Charged to Expense | Retirements | Acquisitions, Net of Divestitures | Adjustments for Asset Retirement Obligations | Impairments, Transfers and Other Adjustments | Balance as of September 30, 2012 | |||||||||||||||||||||
Landfill development costs | $ | (1,735.7 | ) | $ | (192.2 | ) | $ | — | $ | 0.3 | $ | 0.8 | $ | 96.5 | $ | (1,830.3 | ) | ||||||||||
Vehicles and equipment | (2,119.1 | ) | (362.4 | ) | 59.0 | 1.6 | — | (0.1 | ) | (2,421.0 | ) | ||||||||||||||||
Buildings and improvements | (205.6 | ) | (27.5 | ) | 1.6 | 0.3 | — | — | (231.2 | ) | |||||||||||||||||
Total | $ | (4,060.4 | ) | $ | (582.1 | ) | $ | 60.6 | $ | 2.2 | $ | 0.8 | $ | 96.4 | $ | (4,482.5 | ) |
Nine Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Net cash provided by operating activities | $ | 1,056.7 | $ | 1,286.8 | |||
Net cash used in investing activities | (692.2 | ) | (689.2 | ) | |||
Net cash used in financing activities | (356.8 | ) | (613.3 | ) |
• | Our accounts receivable, exclusive of the change in allowance for doubtful accounts, increased $47.3 million during the nine months ended September 30, 2012 due to timing of billings net of collections as compared to an $80.7 million increase in accounts receivable, exclusive of the change in allowance for doubtful accounts during the comparable 2011 period. |
• | At December 31, 2011 and 2010, we recorded a tax receivable of $68.4 million and $69.8 million, respectively |
• | Income taxes paid, net of refunds received, were $169.0 million and $131.8 million for the nine months ended September 30, 2012 and 2011, respectively. |
• | During the first quarter of 2012, we paid synergy incentive plan bonuses of approximately $68 million. |
• | Cash paid for environmental remediation was $22.8 million higher during the nine months ended September 30, 2012 than the comparable 2011 period primarily due to remediation work performed at one of our landfill sites in our Western Region. |
• | On December 29, 2011, we signed a settlement agreement with the City of Chicago under which we paid the City $11.0 million in January 2012. In addition, we paid $29.5 million to settle the Livingston matter during the nine months ended September 30, 2012. See further discussion in Note 13, Commitments and Contingencies. |
• | Cash paid for interest was $39.1 million lower during the nine months ended September 30, 2012 than the comparable 2011 period due to refinancing of our higher interest rate debt. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Cash provided by operating activities | $ | 361.7 | $ | 491.2 | $ | 1,056.7 | $ | 1,286.8 | ||||||||
Purchases of property and equipment | (244.9 | ) | (214.4 | ) | (707.4 | ) | (696.1 | ) | ||||||||
Proceeds from sales of property and equipment | 3.1 | 7.1 | 24.5 | 23.4 | ||||||||||||
Free cash flow | $ | 119.9 | $ | 283.9 | $ | 373.8 | $ | 614.1 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Purchases of property and equipment per the unaudited consolidated statements of cash flows | $ | 244.9 | $ | 214.4 | $ | 707.4 | $ | 696.1 | ||||||||
Adjustments for property and equipment received during the prior period but paid for in the following period, net | (29.2 | ) | (0.2 | ) | (33.7 | ) | (94.3 | ) | ||||||||
Property and equipment received during the period | $ | 215.7 | $ | 214.2 | $ | 673.7 | $ | 601.8 | ||||||||
• | the impact on us of our substantial indebtedness, including on our ability to obtain financing on acceptable terms to finance our operations and growth strategy and to operate within the limitations imposed by financing arrangements; |
• | general economic and market conditions, including the current global economic and financial market crisis, inflation and changes in commodity pricing, fuel, labor, risk and health insurance and other variable costs that are generally not within our control, and our exposure to credit and counterparty risk; |
• | whether our estimates and assumptions concerning our selected balance sheet accounts, income tax accounts, the recoverability of long-lived assets, the depletion and amortization of landfill development costs, accruals for final capping, closure and post-closure costs, available airspace, valuation allowances for accounts receivable, self-insurance, liabilities for potential litigation, claims and assessments, and liabilities for environmental remediation, employee benefit and pension plans, and labor, fuel rates and economic and inflationary trends, turn out to be correct or appropriate; |
• | competition and demand for services in the solid waste industry; |
• | price increases to our customers may not be adequate to offset the impact of increased costs, including labor, third-party disposal and fuel, and may cause us to lose volume; |
• | our ability to manage growth and execute our growth strategy; |
• | our compliance with, and future changes in, environmental and flow control regulations and our ability to obtain approvals from regulatory agencies in connection with operating and expanding our landfills; |
• | our ability to retain our investment grade ratings for our debt; |
• | our dependence on key personnel; |
• | our dependence on large, long-term collection, transfer and disposal contracts; |
• | our business is capital intensive and may consume cash in excess of cash flow from operations; |
• | any exposure to environmental liabilities, to the extent not adequately covered by insurance, could result in substantial expenses; |
• | risks associated with undisclosed liabilities of acquired businesses; |
• | risks associated with pending and future legal proceedings, including litigation, audits or investigations brought by or before any governmental body; |
• | severe weather conditions, which could impair our financial results by causing increased costs, loss of revenue, reduced operational efficiency or disruptions to our operations; |
• | compliance with existing and future legal and regulatory requirements, including limitations or bans on disposal of certain types of wastes or on the transportation of waste, which could limit our ability to conduct or grow our business, increase our costs to operate or require additional capital expenditures; |
• | potential increases in our expenses if we are required to provide additional funding to any multi-employer pension plan to which we contribute or if an additional withdrawal event or events occur with respect to Central States Pension Fund or if a withdrawal event occurs with respect to any other multiemployer pension plan to which we contribute; |
• | the negative impact on our operations of union organizing campaigns, work stoppages or labor shortages; |
• | the negative effect that trends toward requiring recycling, waste reduction at the source and prohibiting the disposal of certain types of wastes could have on volumes of waste going to landfills; |
• | changes by the Financial Accounting Standards Board or other accounting regulatory bodies to generally accepted accounting principles or policies; and |
• | acts of war, riots or terrorism, including the events taking place in the Middle East and the continuing war on |
ITEM 1. | LEGAL PROCEEDINGS. |
ITEM 1A. | RISK FACTORS. |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
Total Number of Shares (or Units) Purchased (a) | Average Price Paid per Share (a) | Total Number of Shares Purchased as Part of Publicly Announced Program (b) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (c) | ||||||||||
July 2012 | 109,083 | $ | 25.92 | 109,083 | $ | 474,397,131 | |||||||
August 2012 | 890,145 | $ | 28.62 | 890,145 | $ | 448,918,554 | |||||||
September 2012 | 261,500 | $ | 28.30 | 261,500 | $ | 441,518,290 | |||||||
1,260,728 | 1,260,728 |
(a) | In August 2011, our board of directors approved a share repurchase program pursuant to which we may repurchase up to $750.0 million of our outstanding shares of common stock through December 31, 2013 (the 2011 Program). The 2011 Program was publicly announced on August 15, 2011. Previously, our board of directors approved a share repurchase program pursuant to which we were authorized to repurchase up to $400.0 million of our outstanding shares of common stock through December 31, 2011 (the 2010 Program). The 2010 Program was publicly announced on November 4, 2010. The authorization under the 2011 Program was in addition to the authorization then remaining under the 2010 Program. During the third quarter of 2011, we completed our share purchases under the 2010 Program. Share repurchases under the programs may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws. While the board of directors has approved the programs, the timing of any purchases, the prices and the number of shares of common stock to be purchased will be determined by our management, at its discretion, and will depend upon market conditions and other factors. The 2011 Program may be extended, suspended or discontinued at any time. |
(b) | The total number of shares purchased as part of the publicly announced program were all purchased pursuant to the 2011 Program. |
(c) | Shares that may be purchased under the program exclude shares of common stock that may be surrendered to satisfy statutory minimum tax withholding obligations in connection with the vesting of restricted stock issued to employees. |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES. |
ITEM 4. | MINE SAFETY DISCLOSURES. |
ITEM 5. | OTHER INFORMATION. |
ITEM 6. | EXHIBITS. |
Exhibit Number | Description of Exhibit | |
4.1* | Amendment No. 1, dated as of October 29, 2012, to the Amended and Restated Credit Agreement, dated as of May 8, 2012 by and among Republic Services, Inc., as Borrower, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the other lenders party thereto. | |
4.2* | Amendment No. 2, dated as of October 29, 2012, to the Amended and Restated Credit Agreement, dated as of April 20, 2011 by and among Republic Services, Inc., as Borrower, Bank of America, N.A., as Administrative Agent, and each of the lenders party thereto. | |
10.1+ | Offer Letter, dated August 17, 2012, by and between Robert Boucher and Republic Services, Inc. (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated August 20, 2012). | |
31.1* | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer | |
31.2* | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer | |
32.1* | Section 1350 Certification of Chief Executive Officer | |
32.2* | Section 1350 Certification of Chief Financial Officer | |
101.INS** | XBRL Instance Document | |
101.SCH** | XBRL Taxonomy Extension Schema Document | |
101.CAL** | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB** | XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE** | XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF** | XBRL Taxonomy Extension Definition Linkbase Document |
* | Filed herewith |
** | This exhibit is being furnished rather than filed, and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-K. |
+ | Indicates a management or compensatory plan or arrangement. |
REPUBLIC SERVICES, INC. | |||
Date: | November 1, 2012 | By: | /S/ TOD C. HOLMES |
Tod C. Holmes | |||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||
Date: | November 1, 2012 | By: | /S/ CHARLES F. SERIANNI |
Charles F. Serianni Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) |
1. | Amendments to the Credit Agreement. Subject to the terms and conditions set forth herein, the Credit Agreement is hereby amended as follows: |
(a) | The definition of “Consolidated EBITDA” in Section 1.01 is deleted in its entirety and the following is inserted in lieu thereof: |
(b) | Section 8.01(h) is deleted in its entirety and the following is inserted in lieu thereof: |
(a) | ERISA. (i) Except as previously disclosed on Schedule 5.07, an ERISA Event shall occur with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $25,000,000; (ii) a contribution failure shall occur with respect to a Pension Plan sufficient to give rise to a Lien under Section 303(k) of ERISA securing obligations in excess of $10,000,000; or (iii) the Borrower or any ERISA Affiliate shall fail to pay when due, after the expiration of any applicable grace period (or any period during which (x) the Borrower is permitted to contest its obligation to make such payment without incurring any liability (other than interest) or penalty and (y) the Borrower is contesting such obligation in good faith and by appropriate proceedings), any installment payment with respect to its withdrawal liability under Section 4201 of ERISA or any contribution obligation under Section 4243 of ERISA, in each case under a Multiemployer Plan in an aggregate amount in excess of $25,000,000. |
(a) | Schedule 5.07 attached to this Amendment is inserted as a new Schedule 5.07 to the Credit Agreement. |
2. | Conditions Precedent to Amendments. The effectiveness of this Amendment and the amendments to the Credit Agreement set forth in Section 1 above is subject to the accuracy of the representations and warranties set forth in Section 3 below on the date hereof and the satisfaction of the following conditions precedent: |
(a) | the Administrative Agent shall have received counterparts of this Amendment, duly executed by the Borrower, the Administrative Agent and each of the Required Lenders; |
(b) | the Administrative Agent shall have received, for the account of each of the Lenders that executes this Amendment on or before the effective date hereof, an amendment fee equal to 0.01% of the Aggregate Commitments as of the date hereof, which shall be allocable on a pro-rata basis to the Lenders in accordance with each such Lender’s Applicable Percentage as of the date hereof; |
(c) | the Administrative Agent shall have received evidence that contemporaneously herewith a corresponding amendment with respect to the 2011 Credit Agreement shall become effective; and |
(d) | unless waived by the Administrative Agent, all fees and expenses of the Administrative Agent and the Lenders (including the reasonable fees and expenses of counsel to the Administrative Agent to the extent invoiced prior to the date hereof) in connection with this Amendment shall have been paid in full (without prejudice to final settling of accounts for such fees and expenses). |
3. | Representations and Warranties. In order to induce the Administrative Agent and the Lenders to enter into this Amendment, the Borrower represents and warrants to the Administrative Agent and the Lenders as follows: |
(a) | After giving effect to this Amendment, the representations and warranties of the Borrower contained in Article V of the Credit Agreement and in the other Loan Documents are true and correct in all material respects (except, if a qualifier relating to materiality, Material Adverse Effect or a similar concept applies, such representation or warranty is true and correct in all respects) on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (except, if a qualifier relating to materiality, Material Adverse Effect or a similar concept applies, such representation or warranty is true and correct in all respects) as of such earlier date and except that the representations and warranties in Section 5.11(a) shall be deemed to refer to the most recent statements furnished pursuant to Section 6.01. |
(b) | This Amendment has been duly authorized, executed and delivered by, and constitutes a legal, valid and binding obligation of, the Borrower, except as may be limited by general principles of equity or by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally. |
4. | Entire Agreement. This Amendment, together with the Loan Documents (collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relating to such subject matter. No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied on any such promise, condition, representation or warranty. Each of the parties hereto acknowledges that, except as otherwise expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to the other in relation to the subject matter hereof or thereof. None of the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise, except in writing and in accordance with Section 10.01 of the Credit Agreement. |
5. | Full Force and Effect of Amendment. Except as hereby specifically amended, modified or supplemented, the Credit Agreement and all other Loan Documents are hereby confirmed and ratified in all respects and shall be and remain in full force and effect according to their respective terms. |
6. | Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment by telecopy, facsimile or other electronic transmission (including .PDF) shall be effective as delivery of a manually executed counterpart of this Amendment. |
7. | Governing Law. This Amendment shall in all respects be governed by, and construed in accordance with, the laws of the State of New York. |
8. | Enforceability. Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable as to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto. |
9. | References. This Amendment shall constitute a Loan Document and all references in any of the other Loan Documents to the “Credit Agreement” shall mean the Credit Agreement, as amended hereby. |
10. | Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the Borrower, the Administrative Agent, the Lenders and their respective successors and assignees to the extent such assignees are permitted assignees as provided in Section 10.06 of the Credit Agreement. |
11. | Amendment Fees. The amendment fees required to be paid pursuant to Section 2(b) above shall be fully earned upon the effectiveness of this Amendment, shall be nonrefundable for any reason whatsoever and shall be in addition to any other fees, costs and expenses payable pursuant to this Amendment, the Credit Agreement or any other Loan Document. |
1. | Amendments to the Credit Agreement. Subject to the terms and conditions set forth herein, the Credit Agreement is hereby amended as follows: |
(a) | The definition of “Consolidated EBITDA” in Section 1.01 is deleted in its entirety and the following is inserted in lieu thereof: |
(b) | Section 8.01(h) is deleted in its entirety and the following is inserted in lieu thereof: |
(a) | ERISA. (i) Except as previously disclosed on Schedule 5.07, an ERISA Event shall occur with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $25,000,000; (ii) a contribution failure shall occur with respect to a Pension Plan sufficient to give rise to a Lien under Section 303(k) of ERISA securing obligations in excess of $10,000,000; or (iii) the Borrower or any ERISA Affiliate shall fail to pay when due, after the expiration of any applicable grace period (or any period during which (x) the Borrower is permitted to contest its obligation to make such payment without incurring any liability (other than interest) or penalty and (y) the Borrower is contesting such obligation in good faith and by appropriate proceedings), any installment payment with respect to its withdrawal liability under Section 4201 of ERISA or any contribution obligation under Section 4243 of ERISA, in each case under a Multiemployer Plan in an aggregate amount in excess of $25,000,000. |
(a) | Schedule 5.07 attached to this Amendment is inserted as a new Schedule 5.07 to the Credit Agreement. |
2. | Conditions Precedent to Amendments. The effectiveness of this Amendment and the amendments to the Credit Agreement set forth in Section 1 above is subject to the accuracy of the representations and warranties set forth in Section 3 below on the date hereof and the satisfaction of the following conditions precedent: |
(a) | the Administrative Agent shall have received counterparts of this Amendment, duly executed by the Borrower, the Administrative Agent and each of the Required Lenders; |
(b) | the Administrative Agent shall have received, for the account of each of the Lenders that executes this Amendment on or before the effective date hereof, an amendment fee equal to 0.01% of the Aggregate Commitments as of the date hereof, which shall be allocable on a pro-rata basis to the Lenders in accordance with each such Lender’s Applicable Percentage as of the date hereof; |
(c) | the Administrative Agent shall have received evidence that contemporaneously herewith a corresponding amendment with respect to the 2012 Credit Agreement shall become effective; and |
(d) | unless waived by the Administrative Agent, all fees and expenses of the Administrative Agent and the Lenders (including the reasonable fees and expenses of counsel to the Administrative Agent to the extent invoiced prior to the date hereof) in connection with this Amendment shall have been paid in full (without prejudice to final settling of accounts for such fees and expenses). |
3. | Representations and Warranties. In order to induce the Administrative Agent and the Lenders to enter into this Amendment, the Borrower represents and warrants to the Administrative Agent and the Lenders as follows: |
(a) | After giving effect to this Amendment, the representations and warranties of the Borrower contained in Article V of the Credit Agreement and in the other Loan Documents are true and correct in all material respects (except, if a qualifier relating to materiality, Material Adverse Effect or a similar concept applies, such representation or warranty is true and correct in all respects) on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (except, if a qualifier relating to materiality, Material Adverse Effect or a similar concept applies, such representation or warranty is true and correct in all respects) as of such earlier date and except that the representations and warranties in Section 5.11(a) shall be deemed to refer to the most recent statements furnished pursuant to Section 6.01. |
(b) | This Amendment has been duly authorized, executed and delivered by, and constitutes a legal, valid and binding obligation of, the Borrower, except as may be limited by general principles of equity or by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally. |
4. | Entire Agreement. This Amendment, together with the Loan Documents (collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relating to such subject matter. No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied on any such promise, condition, representation or warranty. Each of the parties hereto acknowledges that, except as otherwise expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to the other in relation to the subject matter hereof or thereof. None of the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise, except in writing and in accordance with Section 10.01 of the Credit Agreement. |
5. | Full Force and Effect of Amendment. Except as hereby specifically amended, modified or supplemented, the Credit Agreement and all other Loan Documents are hereby confirmed and ratified in all respects and shall be and remain in full force and effect according to their respective terms. |
6. | Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment by telecopy, facsimile or other electronic transmission (including .PDF) shall be effective as delivery of a manually executed counterpart of this Amendment. |
7. | Governing Law. This Amendment shall in all respects be governed by, and construed in accordance with, the laws of the State of New York. |
8. | Enforceability. Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable as to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto. |
9. | References. This Amendment shall constitute a Loan Document and all references in any of the other Loan Documents to the “Credit Agreement” shall mean the Credit Agreement, as amended hereby. |
10. | Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the Borrower, the Administrative Agent, the Lenders and their respective successors and assignees to the extent such assignees are permitted assignees as provided in Section 10.06 of the Credit Agreement. |
11. | Amendment Fees. The amendment fees required to be paid pursuant to Section 2(b) above shall be fully earned upon the effectiveness of this Amendment, shall be nonrefundable for any reason whatsoever and shall be in addition to any other fees, costs and expenses payable pursuant to this Amendment, the Credit Agreement or any other Loan Document. |
1. | I have reviewed this quarterly report on Form 10-Q of Republic Services, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Donald W. Slager | ||
Donald W. Slager President and Chief Executive Officer (Principle Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Republic Services, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Tod C. Holmes | ||
Tod C. Holmes | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Donald W. Slager | |
Donald W. Slager President and Chief Executive Officer (Principle Executive Officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Tod C. Holmes | |
Tod C. Holmes Executive Vice President and Chief Financial Officer (Principle Financial Officer) |
Other Assets (Details 1) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Other Assets | ||
Deferred financing costs | $ 60.1 | $ 54.6 |
Deferred compensation plan | 49.6 | 34.5 |
Notes and other receivables | 35.5 | 31.6 |
Reinsurance receivable | 63.2 | 58.0 |
Other | 69.7 | 68.6 |
Total | $ 278.1 | $ 247.3 |
Stockholders' Equity and Earnings Per Share (Details Textual) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified |
1 Months Ended | 3 Months Ended | 9 Months Ended | 23 Months Ended | |||
---|---|---|---|---|---|---|---|
Aug. 31, 2011
|
Nov. 30, 2010
|
Sep. 30, 2012
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Dec. 31, 2011
|
|
Stockholders' Equity Note [Abstract] | |||||||
Maximum amount authorized to repurchase common stock by Board of Director | $ 750,000,000 | $ 400,000,000 | |||||
Purchase of common stock (in shares) | 1.3 | 24.7 | |||||
Amount used to repurchase of common stock | 35,700,000 | 708,300,000 | |||||
Average cost per share of common stock (in dollars per share) | $ 28.32 | $ 28.65 | |||||
Quarterly dividend per share (in dollars per share) | $ 0.235 | ||||||
Cash dividends declared | 247,600,000 | 232,700,000 | |||||
Quarterly dividend payable | $ 85,700,000 | $ 85,700,000 | $ 85,700,000 | $ 81,400,000 |
Debt (Details Textual) (USD $)
|
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2012
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
Sep. 30, 2012
$1.0 billion Revolver due 2012 [Member]
|
May 31, 2012
$1.0 billion Revolver due 2012 [Member]
|
Dec. 31, 2011
$1.0 billion Revolver due 2012 [Member]
|
Mar. 31, 2012
Uncommitted Revolver, Original Borrowing Capacity [Member]
|
Mar. 31, 2012
Uncommitted Revolver, Amended Borrowing Capacity [Member]
|
Sep. 30, 2012
Long term debt, credit facility matured on September 2013 [Member]
|
May 31, 2012
Long term debt, credit facility matured on September 2013 [Member]
|
Dec. 31, 2011
Long term debt, credit facility matured on September 2013 [Member]
|
Sep. 30, 2012
$750.0 million 6.875% senior notes due June 2017 [Member]
|
Jun. 30, 2012
$750.0 million 6.875% senior notes due June 2017 [Member]
|
Dec. 31, 2011
$750.0 million 6.875% senior notes due June 2017 [Member]
|
Jun. 30, 2011
$99.5 million 9.250% debentures due May 2021 [Member]
|
Mar. 31, 2011
$99.5 million 9.250% debentures due May 2021 [Member]
|
Sep. 30, 2012
$99.5 million 9.250% debentures due May 2021 [Member]
|
Dec. 31, 2011
$99.5 million 9.250% debentures due May 2021 [Member]
|
Sep. 30, 2011
$360.0 million 7.400% debentures due September 2035 [Member]
|
Jun. 30, 2011
$360.0 million 7.400% debentures due September 2035 [Member]
|
Sep. 30, 2012
$360.0 million 7.400% debentures due September 2035 [Member]
|
Dec. 31, 2011
$360.0 million 7.400% debentures due September 2035 [Member]
|
Sep. 30, 2012
Uncommitted revolver [Member]
|
Dec. 31, 2011
Uncommitted revolver [Member]
|
Dec. 31, 2011
Eurodollar Rate borrowings [Member]
|
Sep. 30, 2012
Senior Notes: June 2022 [Member]
|
Dec. 31, 2011
Senior Notes: June 2022 [Member]
|
Sep. 30, 2012
Senior notes: March 2020 [Member]
|
Dec. 31, 2011
Senior notes: March 2020 [Member]
|
Sep. 30, 2012
Senior notes: March 2040 [Member]
|
Dec. 31, 2011
Senior notes: March 2040 [Member]
|
Sep. 30, 2012
Minimum [Member]
|
Sep. 30, 2012
Maximum [Member]
|
Dec. 31, 2011
Credit Facilities [Member]
|
Sep. 30, 2012
Fixed Rate Senior Notes [Member]
|
Dec. 31, 2011
Fixed Rate Senior Notes [Member]
|
Sep. 30, 2012
Interest Rate Swap [Member]
|
Aug. 31, 2011
Interest Rate Swap [Member]
|
Sep. 30, 2012
Interest Rate Locks [Member]
|
Sep. 30, 2012
Original ERISA Event Limit [Member]
|
Sep. 30, 2012
Amended ERISA Event Limit [Member]
|
|
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Revolving credit facility maximum borrowing capacity | $ 1,250,000,000 | $ 75,000,000 | $ 125,000,000 | $ 1,250,000,000 | ||||||||||||||||||||||||||||||||||||||||
Aggregate amount under Amended and Restated Credit Facility | 500,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Reduced amount of existing credit facility | 1,000,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Interest rate (in percentage) | 6.875% | 6.875% | 9.25% | 9.25% | 9.25% | 7.40% | 7.40% | 1.20% | 3.55% | 5.00% | 6.20% | 3.25% | ||||||||||||||||||||||||||||||||
Debt Instrument, Debt Default, Description of Violation or Event of Default | 25 | 250 | ||||||||||||||||||||||||||||||||||||||||||
Withdrawl liability - Central States | 30,700,000 | 30,700,000 | 0 | |||||||||||||||||||||||||||||||||||||||||
Debt | 7,104,400,000 | 7,104,400,000 | 6,921,800,000 | 0 | 17,200,000 | 0 | 17,200,000 | 0 | 674,200,000 | 33,400,000 | 33,300,000 | 123,600,000 | 123,300,000 | 72,200,000 | 0 | 34,400,000 | 847,700,000 | 0 | 849,900,000 | 849,900,000 | 649,500,000 | 649,500,000 | ||||||||||||||||||||||
Letters of credit utilizing availability under our credit facilities | 918,900,000 | 950,200,000 | ||||||||||||||||||||||||||||||||||||||||||
Balance availability under Letters of Credit Facilities | 1,331,100,000 | 1,515,400,000 | ||||||||||||||||||||||||||||||||||||||||||
Debt instrument, face amount | 7,184,800,000 | 7,184,800,000 | 7,092,200,000 | 0 | 17,200,000 | 0 | 17,200,000 | 0 | 750,000,000 | 750,000,000 | 99,500,000 | 99,500,000 | 35,300,000 | 35,300,000 | 360,000,000 | 165,200,000 | 165,200,000 | 72,200,000 | 0 | 850,000,000 | 0 | 850,000,000 | 850,000,000 | 650,000,000 | 650,000,000 | |||||||||||||||||||
Redemption of senior notes, face amount | 750,000,000 | 750,000,000 | 59,200,000 | 5,000,000 | 12,000,000 | 182,700,000 | ||||||||||||||||||||||||||||||||||||||
Percentage of tax exempt financings | 80.00% | 80.00% | ||||||||||||||||||||||||||||||||||||||||||
Capital lease liabilities | 88,000,000 | 88,000,000 | 88,300,000 | |||||||||||||||||||||||||||||||||||||||||
Range of capital lease liabilities matured | 2012 | 2042 | ||||||||||||||||||||||||||||||||||||||||||
Fair value of our fixed rate senior notes | 6,800,000,000 | 6,300,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Carrying value of fixed rate senior notes | 5,800,000,000 | 5,700,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Notional value of swap agreements | 210,000,000 | 200,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Interest at fixed rates | 6.75% | 2.20% | ||||||||||||||||||||||||||||||||||||||||||
Reducing the Interest rate periodic swap agreement | 1,000,000 | 5,400,000 | ||||||||||||||||||||||||||||||||||||||||||
Amount of interest rate locks terminated and paid | 4,800,000 | |||||||||||||||||||||||||||||||||||||||||||
Accumulated and other comprehensive income, net of tax | 24,900,000 | 24,900,000 | 23,200,000 | 4,700,000 | 2,700,000 | |||||||||||||||||||||||||||||||||||||||
Expected to amortization of yield adjustment on 2011 notes | 2,500,000 | |||||||||||||||||||||||||||||||||||||||||||
Effective portion of interest rate locks amortized as an adjustment to interest expense | $ 600,000 | $ 500,000 | $ 1,600,000 | $ 900,000 |
Commitments and Contingencies - Livingston Matter (Details Textual 6) (USD $)
In Millions, unless otherwise specified |
9 Months Ended | |
---|---|---|
Sep. 30, 2012
|
Oct. 13, 2009
|
|
Commitments and Contingencies Disclosure [Abstract] | ||
Loss contingency class action lawsuit plaintiff criteria for Livingston matter | The court granted class certification for all those living within a six mile radius of the CECOS site between the years 1977 and 1990. | |
Settlement agreement executed for settlement of outstanding violations | $ 29.5 |
Debt (Details) (USD $)
In Millions, unless otherwise specified |
9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2012
Credit facilities: Uncommitted revolver [Member]
|
Dec. 31, 2011
Credit facilities: Uncommitted revolver [Member]
|
Sep. 30, 2012
Credit facilities: September 2013
|
Dec. 31, 2011
Credit facilities: September 2013
|
Sep. 30, 2012
Credit facilities: April 2016 [Member]
|
Dec. 31, 2011
Credit facilities: April 2016 [Member]
|
Sep. 30, 2012
Credit facilities: May 2017 [Member]
|
Dec. 31, 2011
Credit facilities: May 2017 [Member]
|
Sep. 30, 2012
Senior notes: June 2017 [Member]
|
Jun. 30, 2012
Senior notes: June 2017 [Member]
|
Dec. 31, 2011
Senior notes: June 2017 [Member]
|
Sep. 30, 2012
Senior notes: May 2018 [Member]
|
Dec. 31, 2011
Senior notes: May 2018 [Member]
|
Sep. 30, 2012
Senior notes: September 2019 [Member]
|
Dec. 31, 2011
Senior notes: September 2019 [Member]
|
Sep. 30, 2012
Senior notes: March 2020 [Member]
|
Dec. 31, 2011
Senior notes: March 2020 [Member]
|
Sep. 30, 2012
Senior notes: November 2021 [Member]
|
Dec. 31, 2011
Senior notes: November 2021 [Member]
|
Sep. 30, 2012
Senior Notes: June 2022 [Member]
|
Dec. 31, 2011
Senior Notes: June 2022 [Member]
|
Sep. 30, 2012
Senior notes: May 2023 [Member]
|
Dec. 31, 2011
Senior notes: May 2023 [Member]
|
Sep. 30, 2012
Senior notes: March 2035 [Member]
|
Dec. 31, 2011
Senior notes: March 2035 [Member]
|
Sep. 30, 2012
Senior notes: March 2040 [Member]
|
Dec. 31, 2011
Senior notes: March 2040 [Member]
|
Sep. 30, 2012
Senior notes: May 2041 [Member]
|
Dec. 31, 2011
Senior notes: May 2041 [Member]
|
Sep. 30, 2012
Debentures: May 2021 [Member]
|
Dec. 31, 2011
Debentures: May 2021 [Member]
|
Jun. 30, 2011
Debentures: May 2021 [Member]
|
Mar. 31, 2011
Debentures: May 2021 [Member]
|
Sep. 30, 2012
Debentures: September 2035 [Member]
|
Dec. 31, 2011
Debentures: September 2035 [Member]
|
Jun. 30, 2011
Debentures: September 2035 [Member]
|
Sep. 30, 2012
Tax-exempt: 2012 - 2035 [Member]
|
Dec. 31, 2011
Tax-exempt: 2012 - 2035 [Member]
|
Sep. 30, 2012
Other: 2012 - 2042 [Member]
|
Dec. 31, 2011
Other: 2012 - 2042 [Member]
|
|
Debt | ||||||||||||||||||||||||||||||||||||||||||
Interest Rate | Variable | Variable | Variable | Variable | ||||||||||||||||||||||||||||||||||||||
Interest Rate (in percentage) | 1.20% | 6.875% | 6.875% | 3.80% | 5.50% | 5.00% | 5.25% | 3.55% | 4.75% | 6.086% | 6.20% | 5.70% | 9.25% | 9.25% | 9.25% | 7.40% | 7.40% | |||||||||||||||||||||||||
Interest rate, minimum | 0.19% | 5.00% | ||||||||||||||||||||||||||||||||||||||||
Interest rate, maximum | 5.625% | 11.90% | ||||||||||||||||||||||||||||||||||||||||
Principal | $ (7,184.8) | $ (7,092.2) | $ (72.2) | $ 0 | $ 0 | $ (17.2) | $ 0 | $ (17.2) | $ 0 | $ 0 | $ 0 | $ (750.0) | $ (750.0) | $ (700.0) | $ (700.0) | $ (650.0) | $ (650.0) | $ (850.0) | $ (850.0) | $ (600.0) | $ (600.0) | $ (850.0) | $ 0 | $ (550.0) | $ (550.0) | $ (275.7) | $ (275.7) | $ (650.0) | $ (650.0) | $ (600.0) | $ (600.0) | $ (35.3) | $ (35.3) | $ (99.5) | $ (99.5) | $ (165.2) | $ (165.2) | $ (360.0) | $ (1,097.9) | $ (1,142.2) | $ (88.5) | $ (89.4) |
Discount | (80.4) | (170.4) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (75.8) | (0.2) | (0.2) | (3.5) | (3.8) | (0.1) | (0.1) | 0 | 0 | (2.3) | 0 | (1.3) | (1.4) | (25.1) | (25.5) | (0.5) | (0.5) | (3.4) | (3.4) | (1.9) | (2.0) | (41.6) | (41.9) | (0.5) | (15.8) | 0 | 0 | ||||
Carry Value | 7,104.4 | 6,921.8 | 72.2 | 0 | 0 | 17.2 | 0 | 17.2 | 0 | 0 | 0 | 674.2 | 699.8 | 699.8 | 646.5 | 646.2 | 849.9 | 849.9 | 600.0 | 600.0 | 847.7 | 0 | 548.7 | 548.6 | 250.6 | 250.2 | 649.5 | 649.5 | 596.6 | 596.6 | 33.4 | 33.3 | 123.6 | 123.3 | 1,097.4 | 1,126.4 | 88.5 | 89.4 | ||||
Less: Current portion | (44.4) | (34.8) | ||||||||||||||||||||||||||||||||||||||||
Long-term portion | $ 7,060.0 | $ 6,887.0 |
Commitments and Contingencies (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Cash and Marketable Securities | The following table summarizes our restricted cash and marketable securities:
|
Subsequent Events (Details) (Subsequent Event [Member], USD $)
In Millions, unless otherwise specified |
1 Months Ended |
---|---|
Oct. 31, 2012
|
|
Subsequent Event [Line Items] | |
Expected restructuring costs | $ 30 |
Field Operations [Member]
|
|
Subsequent Event [Line Items] | |
Number of regions, prior to restructuring (in regions) | 4 |
Number of regions, subsequent to restructuring (in regions) | 3 |
Number of areas, prior to restructuring (in areas) | 28 |
Number of areas, subsequent to restructuring (in areas) | 20 |
Commitments and Contingencies - Multiemployer Pension Plans (Details Textual 7)
|
9 Months Ended |
---|---|
Sep. 30, 2012
PensionPlan
|
|
Commitments and Contingencies Disclosure [Abstract] | |
Number of multi-employer pension plans (in number of plans) | 27 |
Current employee participants in multi-employer plans | 20.00% |
Other Assets (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | A summary of prepaid expenses and other current assets as of September 30, 2012 and December 31, 2011 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | A summary of other assets as of September 30, 2012 and December 31, 2011 is as follows:
|
Landfill and Environmental Costs (Details) (USD $)
In Millions, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Dec. 31, 2010
|
---|---|---|---|---|
Summary of landfill and environmental liabilities | ||||
Final capping, closure and post-closure liabilities | $ 1,058.7 | $ 1,037.0 | $ 1,048.8 | $ 1,046.5 |
Remediation | 546.3 | 543.7 | 554.9 | 552.1 |
Landfill and environmental liabilities | 1,605.0 | 1,580.7 | ||
Less: Current portion | (185.4) | (184.2) | ||
Long-term portion | $ 1,419.6 | $ 1,396.5 |
Goodwill and Other Intangible Assets, Net (Details Textual)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Minimum [Member]
|
|
Finite-Lived Intangible Assets [Line Items] | |
Amortization period for other intangible assets | 1 year |
Maximum [Member]
|
|
Finite-Lived Intangible Assets [Line Items] | |
Amortization period for other intangible assets | 24 years |
Commitments and Contingencies - Luri Matter (Details Textual 3) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2008
|
May 19, 2011
|
Sep. 24, 2008
|
Jul. 03, 2008
|
Aug. 17, 2007
Employees
|
|
Commitments and Contingencies [Line Items] | |||||||||
Number of discharge or demote employees (in employees) | 3 | ||||||||
Total damage | $ 46.6 | ||||||||
Punitive damages | 7.0 | 43.1 | |||||||
Pre-judgment interest | 0.3 | ||||||||
Attorney fees and litigation costs | $ 1.1 | ||||||||
Rate of post-judgment interest | 3.00% | 4.00% | 4.00% | 5.00% | 8.00% | ||||
Minimum [Member]
|
|||||||||
Commitments and Contingencies [Line Items] | |||||||||
Age of employees discharged or demoted (in years old) | 50 |
Segment Reporting (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|
Summarized financial information concerning our reportable segments | |||||
Gross Revenue | $ 2,454.8 | $ 2,516.2 | $ 7,298.4 | $ 7,335.6 | |
Intercompany Revenue | (407.9) | (400.0) | (1,208.5) | (1,167.9) | |
Net Revenue | 2,046.9 | 2,116.2 | 6,089.9 | 6,167.7 | |
Depreciation, Amortization, Depletion and Accretion | 223.2 | 234.4 | 691.2 | 688.0 | |
Operating Income (Loss) | 317.9 | 408.5 | 1,031.8 | 1,185.9 | |
Capital Expenditures | 244.9 | 214.4 | 707.4 | 696.1 | |
Total Assets | 19,634.3 | 19,456.2 | 19,634.3 | 19,456.2 | 19,551.5 |
Eastern [Member]
|
|||||
Summarized financial information concerning our reportable segments | |||||
Gross Revenue | 606.1 | 638.6 | 1,815.2 | 1,856.0 | |
Intercompany Revenue | (90.6) | (95.6) | (269.7) | (274.5) | |
Net Revenue | 515.5 | 543.0 | 1,545.5 | 1,581.5 | |
Depreciation, Amortization, Depletion and Accretion | 45.6 | 52.7 | 149.3 | 151.7 | |
Operating Income (Loss) | 111.9 | 121.3 | 328.1 | 375.7 | |
Capital Expenditures | 53.9 | 56.8 | 129.0 | 172.0 | |
Total Assets | 4,456.1 | 4,472.2 | 4,456.1 | 4,472.2 | |
Midwestern [Member]
|
|||||
Summarized financial information concerning our reportable segments | |||||
Gross Revenue | 553.3 | 578.0 | 1,634.7 | 1,654.6 | |
Intercompany Revenue | (103.6) | (103.2) | (302.8) | (294.2) | |
Net Revenue | 449.7 | 474.8 | 1,331.9 | 1,360.4 | |
Depreciation, Amortization, Depletion and Accretion | 50.3 | 54.6 | 155.1 | 161.0 | |
Operating Income (Loss) | 89.1 | 101.2 | 253.2 | 278.0 | |
Capital Expenditures | 70.0 | 55.3 | 153.7 | 171.1 | |
Total Assets | 3,805.5 | 3,812.7 | 3,805.5 | 3,812.7 | |
Southern [Member]
|
|||||
Summarized financial information concerning our reportable segments | |||||
Gross Revenue | 599.1 | 598.8 | 1,795.4 | 1,764.0 | |
Intercompany Revenue | (83.9) | (80.0) | (251.6) | (236.4) | |
Net Revenue | 515.2 | 518.8 | 1,543.8 | 1,527.6 | |
Depreciation, Amortization, Depletion and Accretion | 58.5 | 57.6 | 173.6 | 169.6 | |
Operating Income (Loss) | 103.6 | 118.6 | 323.7 | 348.5 | |
Capital Expenditures | 65.1 | 57.2 | 162.6 | 164.4 | |
Total Assets | 4,916.6 | 4,892.5 | 4,916.6 | 4,892.5 | |
Western [Member]
|
|||||
Summarized financial information concerning our reportable segments | |||||
Gross Revenue | 672.7 | 670.7 | 1,974.4 | 1,976.8 | |
Intercompany Revenue | (126.4) | (117.1) | (374.0) | (350.5) | |
Net Revenue | 546.3 | 553.6 | 1,600.4 | 1,626.3 | |
Depreciation, Amortization, Depletion and Accretion | 55.8 | 56.7 | 164.6 | 167.7 | |
Operating Income (Loss) | 114.9 | 125.7 | 327.9 | 366.6 | |
Capital Expenditures | 58.0 | 60.1 | 185.5 | 184.8 | |
Total Assets | 5,612.3 | 5,520.9 | 5,612.3 | 5,520.9 | |
Corporate entities [Member]
|
|||||
Summarized financial information concerning our reportable segments | |||||
Gross Revenue | 23.6 | 30.1 | 78.7 | 84.2 | |
Intercompany Revenue | (3.4) | (4.1) | (10.4) | (12.3) | |
Net Revenue | 20.2 | 26.0 | 68.3 | 71.9 | |
Depreciation, Amortization, Depletion and Accretion | 13.0 | 12.8 | 48.6 | 38.0 | |
Operating Income (Loss) | (101.6) | (58.3) | (201.1) | (182.9) | |
Capital Expenditures | (2.1) | (15.0) | 76.6 | 3.8 | |
Total Assets | $ 843.8 | $ 757.9 | $ 843.8 | $ 757.9 |
Debt (Details 1) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
Jun. 30, 2012
Credit Facilities [Member]
|
Jun. 30, 2011
Credit Facilities [Member]
|
Jun. 30, 2011
$600.0 million 7.125% senior notes due May 2016 [Member]
|
Sep. 30, 2012
$750.0 million 6.875% senior notes due June 2017 [Member]
|
Jun. 30, 2012
$750.0 million 6.875% senior notes due June 2017 [Member]
|
Dec. 31, 2011
$750.0 million 6.875% senior notes due June 2017 [Member]
|
Sep. 30, 2012
Tax-exempt financings
|
Jun. 30, 2012
Tax-exempt financings
|
Dec. 31, 2011
Tax-exempt financings
|
Jun. 30, 2012
Ineffective portion of interest rate lock settlements [Member]
|
Jun. 30, 2011
$99.5 million 9.250% debentures due May 2021 [Member]
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Mar. 31, 2011
$99.5 million 9.250% debentures due May 2021 [Member]
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Sep. 30, 2012
$99.5 million 9.250% debentures due May 2021 [Member]
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Dec. 31, 2011
$99.5 million 9.250% debentures due May 2021 [Member]
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Sep. 30, 2011
$360.0 million 7.400% debentures due September 2035 [Member]
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Jun. 30, 2011
$360.0 million 7.400% debentures due September 2035 [Member]
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Sep. 30, 2012
$360.0 million 7.400% debentures due September 2035 [Member]
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Dec. 31, 2011
$360.0 million 7.400% debentures due September 2035 [Member]
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Jun. 30, 2011
Ineffective portion of interest rate lock settlements [Member]
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Extinguishment of Debt [Line Items] | ||||||||||||||||||||||||
Principal Repaid | $ 0 | $ 0 | $ 600.0 | $ 750.0 | $ 750.0 | $ 22.1 | $ 71.9 | $ 0 | $ 59.2 | $ 5.0 | $ 12.0 | $ 182.7 | $ 0 | |||||||||||
Cash Paid in Loss on Extinguishment of Debt | 25.9 | 90.6 | 0 | 0 | 21.4 | 25.8 | 0 | 0 | 0.1 | 22.7 | 1.5 | 2.8 | 41.9 | 0.3 | ||||||||||
Non-cash Loss On Extinguishment of Debt | 86.7 | 116.7 | 1.5 | 1.7 | 61.3 | 71.0 | 2.3 | 11.9 | 0 | 3.5 | 0.3 | 3.2 | 46.7 | 0 | ||||||||||
Total Loss on Extinguishment of Debt | 2.3 | 6.0 | 112.6 | 207.3 | 1.5 | 1.7 | 82.7 | 96.8 | 2.3 | 11.9 | 0.1 | 26.2 | 1.8 | 6.0 | 88.6 | 0.3 | ||||||||
Debt instrument, face amount | $ 7,184.8 | $ 7,184.8 | $ 7,092.2 | $ 600.0 | $ 0 | $ 750.0 | $ 750.0 | $ 1,097.9 | $ 1,142.2 | $ 99.5 | $ 99.5 | $ 35.3 | $ 35.3 | $ 360.0 | $ 165.2 | $ 165.2 | ||||||||
Interest rate (in percentage) | 7.125% | 6.875% | 6.875% | 9.25% | 9.25% | 9.25% | 7.40% | 7.40% |
Business Acquisitions
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Sep. 30, 2012
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions | BUSINESS ACQUISITIONS We acquired various solid waste businesses during the nine months ended September 30, 2012 and 2011. The purchase price paid for these acquisitions during those periods and the preliminary allocation of the purchase price as of September 30 are as follows:
Substantially all of the goodwill and intangible assets recorded for these acquisitions are deductible for tax purposes. |
Segment Reporting (Details 1) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
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Sep. 30, 2011
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Revenue by service line | ||||
Total collection | $ 1,578.7 | $ 1,570.2 | $ 4,678.0 | $ 4,639.2 |
Transfer | 247.7 | 258.8 | 721.4 | 750.9 |
Less: Intercompany | (146.4) | (146.3) | (427.5) | (433.0) |
Transfer, net | 101.3 | 112.5 | 293.9 | 317.9 |
Landfill | 477.7 | 496.4 | 1,408.7 | 1,400.3 |
Less: Intercompany | (218.2) | (219.8) | (650.0) | (636.1) |
Landfill, net | 259.5 | 276.6 | 758.7 | 764.2 |
Sale of recyclable materials | 78.4 | 120.0 | 266.5 | 341.2 |
Other non-core | 29.0 | 36.9 | 92.8 | 105.2 |
Other | 107.4 | 156.9 | 359.3 | 446.4 |
Net Revenue | 2,046.9 | 2,116.2 | 6,089.9 | 6,167.7 |
Total collection (in percentage) | 77.10% | 74.20% | 76.80% | 75.20% |
Transfer, net (in percentage) | 5.00% | 5.30% | 4.80% | 5.20% |
Landfill, net (in percentage) | 12.70% | 13.10% | 12.50% | 12.40% |
Sale of recyclable materials (in percentage) | 3.80% | 5.70% | 4.40% | 5.50% |
Other non-core (in percentage) | 1.40% | 1.70% | 1.50% | 1.70% |
Other (in percentage) | 5.20% | 7.40% | 5.90% | 7.20% |
Total revenue (in percentage) | 100.00% | 100.00% | 100.00% | 100.00% |
Residential [Member]
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Revenue by service line | ||||
Total collection | 542.0 | 538.3 | 1,614.0 | 1,601.6 |
Total collection (in percentage) | 26.50% | 25.40% | 26.50% | 26.00% |
Commercial [Member]
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Revenue by service line | ||||
Total collection | 632.4 | 625.9 | 1,884.4 | 1,871.5 |
Total collection (in percentage) | 30.90% | 29.60% | 30.90% | 30.30% |
Industrial [Member]
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Revenue by service line | ||||
Total collection | 395.9 | 397.5 | 1,154.7 | 1,141.7 |
Total collection (in percentage) | 19.30% | 18.80% | 19.00% | 18.50% |
Other [Member]
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Revenue by service line | ||||
Total collection | $ 8.4 | $ 8.5 | $ 24.9 | $ 24.4 |
Total collection (in percentage) | 0.40% | 0.40% | 0.40% | 0.40% |