þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | 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) | (I.R.S. 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, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 55.0 | $ | 32.4 | |||
Accounts receivable, less allowance for doubtful accounts and other of $50.2 and $46.7, respectively | 1,016.7 | 962.9 | |||||
Prepaid expenses and other current assets | 229.9 | 235.0 | |||||
Total current assets | 1,301.6 | 1,230.3 | |||||
Restricted cash and marketable securities | 85.6 | 100.3 | |||||
Property and equipment, net | 7,616.0 | 7,552.8 | |||||
Goodwill | 11,163.1 | 11,145.5 | |||||
Other intangible assets, net | 201.4 | 246.4 | |||||
Other assets | 294.0 | 260.6 | |||||
Total assets | $ | 20,661.7 | $ | 20,535.9 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 542.8 | $ | 577.4 | |||
Notes payable and current maturities of long-term debt | 5.7 | 5.5 | |||||
Deferred revenue | 320.2 | 313.9 | |||||
Accrued landfill and environmental costs, current portion | 177.0 | 149.8 | |||||
Accrued interest | 68.0 | 71.6 | |||||
Other accrued liabilities | 704.2 | 716.6 | |||||
Total current liabilities | 1,817.9 | 1,834.8 | |||||
Long-term debt, net of current maturities | 7,739.6 | 7,527.4 | |||||
Accrued landfill and environmental costs, net of current portion | 1,650.0 | 1,677.9 | |||||
Deferred income taxes and other long-term tax liabilities | 1,194.7 | 1,131.8 | |||||
Insurance reserves, net of current portion | 280.1 | 278.1 | |||||
Other long-term liabilities | 337.9 | 309.3 | |||||
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; 347.7 and 346.0 issued including shares held in treasury, respectively | 3.5 | 3.5 | |||||
Additional paid-in capital | 4,741.5 | 4,677.7 | |||||
Retained earnings | 3,243.9 | 3,138.3 | |||||
Treasury stock, at cost (6.9 and 0.4 shares, respectively) | (326.7 | ) | (14.9 | ) | |||
Accumulated other comprehensive loss, net of tax | (23.0 | ) | (30.5 | ) | |||
Total Republic Services, Inc. stockholders’ equity | 7,639.2 | 7,774.1 | |||||
Noncontrolling interests | 2.3 | 2.5 | |||||
Total stockholders’ equity | 7,641.5 | 7,776.6 | |||||
Total liabilities and stockholders’ equity | $ | 20,661.7 | $ | 20,535.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue | $ | 2,409.3 | $ | 2,344.0 | $ | 7,008.5 | $ | 6,824.8 | |||||||
Expenses: | |||||||||||||||
Cost of operations | 1,476.7 | 1,390.2 | 4,298.7 | 4,114.9 | |||||||||||
Depreciation, amortization and depletion | 252.4 | 247.1 | 745.7 | 726.3 | |||||||||||
Accretion | 19.7 | 19.7 | 59.3 | 59.2 | |||||||||||
Selling, general and administrative | 235.4 | 244.1 | 720.1 | 719.5 | |||||||||||
Withdrawal costs - multiemployer pension funds | — | — | 5.6 | — | |||||||||||
Restructuring charges | 7.2 | — | 33.5 | — | |||||||||||
Operating income | 417.9 | 442.9 | 1,145.6 | 1,204.9 | |||||||||||
Interest expense | (96.3 | ) | (91.8 | ) | (281.3 | ) | (272.0 | ) | |||||||
Loss on extinguishment of debt | (196.2 | ) | — | (196.2 | ) | — | |||||||||
Interest income | 0.2 | 0.1 | 0.9 | 0.6 | |||||||||||
Other (expense) income, net | 1.3 | (0.4 | ) | 2.2 | 0.5 | ||||||||||
Income before income taxes | 126.9 | 350.8 | 671.2 | 934.0 | |||||||||||
Provision for income taxes | 41.2 | 135.6 | 247.6 | 356.0 | |||||||||||
Net income | 85.7 | 215.2 | 423.6 | 578.0 | |||||||||||
Net income attributable to noncontrolling interests | (0.1 | ) | (0.2 | ) | (0.5 | ) | (0.3 | ) | |||||||
Net income attributable to Republic Services, Inc. | $ | 85.6 | $ | 215.0 | $ | 423.1 | $ | 577.7 | |||||||
Basic earnings per share attributable to Republic Services, Inc. stockholders: | |||||||||||||||
Basic earnings per share | $ | 0.25 | $ | 0.62 | $ | 1.23 | $ | 1.65 | |||||||
Weighted average common shares outstanding | 342.6 | 348.9 | 344.0 | 351.0 | |||||||||||
Diluted earnings per share attributable to Republic Services, Inc. stockholders: | |||||||||||||||
Diluted earnings per share | $ | 0.25 | $ | 0.61 | $ | 1.23 | $ | 1.64 | |||||||
Weighted average common and common equivalent shares outstanding | 344.0 | 350.3 | 345.3 | 352.4 | |||||||||||
Cash dividends per common share | $ | 0.32 | $ | 0.30 | $ | 0.92 | $ | 0.86 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 85.7 | $ | 215.2 | $ | 423.6 | $ | 578.0 | |||||||
Other comprehensive (loss) income, net of tax | |||||||||||||||
Hedging activity: | |||||||||||||||
Settlements | (4.8 | ) | (4.6 | ) | (16.2 | ) | (11.0 | ) | |||||||
Realized loss reclassified into earnings | 9.5 | 5.0 | 21.6 | 12.9 | |||||||||||
Unrealized (loss) gain | 3.2 | (5.3 | ) | 2.1 | 0.5 | ||||||||||
Pension activity: | |||||||||||||||
Change in funded status of pension plan obligations | — | — | — | (0.1 | ) | ||||||||||
Other comprehensive (loss) income, net of tax | 7.9 | (4.9 | ) | 7.5 | 2.3 | ||||||||||
Comprehensive income | 93.6 | 210.3 | 431.1 | 580.3 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (0.1 | ) | (0.2 | ) | (0.5 | ) | (0.3 | ) | |||||||
Comprehensive income attributable to Republic Services, Inc. | $ | 93.5 | $ | 210.1 | $ | 430.6 | $ | 580.0 |
Republic Services, Inc. Stockholders’ Equity | |||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss, Net of Tax | Noncontrolling Interests | ||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||
Balance as of December 31, 2015 | 346.0 | $ | 3.5 | $ | 4,677.7 | $ | 3,138.3 | (0.4 | ) | $ | (14.9 | ) | $ | (30.5 | ) | $ | 2.5 | $ | 7,776.6 | ||||||||||||||
Net income | — | — | — | 423.1 | — | — | — | 0.5 | 423.6 | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 7.5 | — | 7.5 | ||||||||||||||||||||||||
Cash dividends declared | — | — | — | (315.2 | ) | — | — | — | — | (315.2 | ) | ||||||||||||||||||||||
Issuances of common stock | 1.7 | — | 43.8 | — | — | — | — | — | 43.8 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 20.0 | (2.3 | ) | — | — | — | — | 17.7 | |||||||||||||||||||||||
Purchase of common stock for treasury | — | — | — | — | (6.5 | ) | (311.8 | ) | — | — | (311.8 | ) | |||||||||||||||||||||
Distributions paid to noncontrolling interests | — | — | — | — | — | — | — | (0.7 | ) | (0.7 | ) | ||||||||||||||||||||||
Balance as of September 30, 2016 | 347.7 | $ | 3.5 | $ | 4,741.5 | $ | 3,243.9 | (6.9 | ) | $ | (326.7 | ) | $ | (23.0 | ) | $ | 2.3 | $ | 7,641.5 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Cash provided by operating activities: | |||||||
Net income | $ | 423.6 | $ | 578.0 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation, amortization, depletion and accretion | 805.0 | 785.5 | |||||
Non-cash interest expense | 41.9 | 35.2 | |||||
Restructuring charges | 33.5 | — | |||||
Stock-based compensation | 17.7 | 15.1 | |||||
Deferred tax provision (benefit) | 58.2 | (12.3 | ) | ||||
Provision for doubtful accounts, net of adjustments | 17.5 | 17.3 | |||||
Loss on extinguishment of debt | 196.2 | — | |||||
Gain on disposition of assets, net and asset impairments | (0.3 | ) | (1.6 | ) | |||
Withdrawal liability - multiemployer pension funds | 5.6 | — | |||||
Environmental adjustments | 0.3 | (1.3 | ) | ||||
Excess income tax benefit from stock-based compensation activity and other non-cash items | (20.5 | ) | (7.0 | ) | |||
Change in assets and liabilities, net of effects from business acquisitions and divestitures: | |||||||
Accounts receivable | (70.8 | ) | (39.8 | ) | |||
Prepaid expenses and other assets | (52.0 | ) | (64.2 | ) | |||
Accounts payable | (19.5 | ) | 11.7 | ||||
Restructuring expenditures | (24.2 | ) | — | ||||
Capping, closure and post-closure expenditures | (56.7 | ) | (50.4 | ) | |||
Remediation expenditures | (50.7 | ) | (50.1 | ) | |||
Other liabilities | 54.8 | 108.4 | |||||
Cash provided by operating activities | 1,359.6 | 1,324.5 | |||||
Cash used in investing activities: | |||||||
Purchases of property and equipment | (738.7 | ) | (732.0 | ) | |||
Proceeds from sales of property and equipment | 7.4 | 17.1 | |||||
Cash used in business acquisitions, net of cash acquired | (30.7 | ) | (535.9 | ) | |||
Change in restricted cash and marketable securities | 10.0 | 8.4 | |||||
Other | (0.4 | ) | (0.8 | ) | |||
Cash used in investing activities | (752.4 | ) | (1,243.2 | ) | |||
Cash used in financing activities: | |||||||
Proceeds from notes payable and long-term debt | 3,068.6 | 895.4 | |||||
Proceeds from issuance of senior notes, net of discount | 498.9 | 497.9 | |||||
Payments of notes payable and long-term debt | (3,388.4 | ) | (908.9 | ) | |||
Premiums paid on extinguishment of debt | (176.9 | ) | — | ||||
Fees paid to issue senior notes and retire certain hedging relationships | (9.5 | ) | (3.2 | ) | |||
Issuances of common stock | 35.4 | 52.3 | |||||
Excess income tax benefit from stock-based compensation activity | 8.4 | 6.2 | |||||
Purchases of common stock for treasury | (306.6 | ) | (293.3 | ) | |||
Cash dividends paid | (309.9 | ) | (295.0 | ) | |||
Distributions paid to noncontrolling interests | (0.7 | ) | (0.4 | ) | |||
Other | (3.9 | ) | (5.0 | ) | |||
Cash used in financing activities | (584.6 | ) | (54.0 | ) | |||
Increase in cash and cash equivalents | 22.6 | 27.3 | |||||
Cash and cash equivalents at beginning of year | 32.4 | 75.2 | |||||
Cash and cash equivalents at end of period | $ | 55.0 | $ | 102.5 |
2016 | 2015 | ||||||
Purchase price: | |||||||
Cash used in acquisitions, net of cash acquired | $ | 30.7 | $ | 535.9 | |||
Contingent consideration | — | 75.8 | |||||
Holdbacks | 3.3 | 2.6 | |||||
Fair value, future minimum lease payments | — | 1.5 | |||||
Total | 34.0 | 615.8 | |||||
Allocated as follows: | |||||||
Accounts receivable | 0.5 | 36.1 | |||||
Landfill airspace | — | 159.7 | |||||
Property and equipment | 11.8 | 144.9 | |||||
Other assets | 0.1 | 1.8 | |||||
Accounts payable | — | (7.1 | ) | ||||
Environmental remediation liabilities | (0.1 | ) | (2.8 | ) | |||
Closure and post-closure liabilities | (0.1 | ) | (11.3 | ) | |||
Other liabilities | (0.7 | ) | (9.5 | ) | |||
Fair value of tangible assets acquired and liabilities assumed | 11.5 | 311.8 | |||||
Excess purchase price to be allocated | $ | 22.5 | $ | 304.0 | |||
Excess purchase price allocated as follows: | |||||||
Other intangible assets | $ | 5.3 | $ | 10.1 | |||
Goodwill | 17.2 | 293.9 | |||||
Total allocated | $ | 22.5 | $ | 304.0 |
Balance as of December 31, 2015 | Acquisitions | Adjustments to Acquisitions | Balance as of September 30, 2016 | |||||||||||||
Group 1 | $ | 5,248.1 | $ | 8.9 | $ | — | $ | 5,257.0 | ||||||||
Group 2 | 5,897.4 | 8.3 | 0.4 | 5,906.1 | ||||||||||||
Total | $ | 11,145.5 | $ | 17.2 | $ | 0.4 | $ | 11,163.1 |
Gross Intangible Assets | Accumulated Amortization | Other Intangible Assets, Net as of September 30, 2016 | |||||||||||||||||||||||||
Balance as of December 31, 2015 | Acquisitions | Balance as of September 30, 2016 | Balance as of December 31, 2015 | Additions Charged to Expense | Balance as of September 30, 2016 | ||||||||||||||||||||||
Customer relationships, franchise and other municipal agreements | $ | 651.6 | $ | 4.4 | $ | 656.0 | $ | (431.0 | ) | $ | (46.8 | ) | $ | (477.8 | ) | $ | 178.2 | ||||||||||
Non-compete agreements | 30.8 | 0.9 | 31.7 | (22.1 | ) | (2.4 | ) | (24.5 | ) | 7.2 | |||||||||||||||||
Other intangible assets | 65.6 | — | 65.6 | (48.5 | ) | (1.1 | ) | (49.6 | ) | 16.0 | |||||||||||||||||
Total | $ | 748.0 | $ | 5.3 | $ | 753.3 | $ | (501.6 | ) | $ | (50.3 | ) | $ | (551.9 | ) | $ | 201.4 |
2016 | 2015 | ||||||
Inventories | $ | 43.7 | $ | 38.8 | |||
Prepaid expenses | 86.3 | 66.1 | |||||
Other non-trade receivables | 35.2 | 34.6 | |||||
Reinsurance receivable | 13.1 | 12.5 | |||||
Income tax receivable | 44.8 | 78.5 | |||||
Other current assets | 6.8 | 4.5 | |||||
Total | $ | 229.9 | $ | 235.0 |
2016 | 2015 | ||||||
Deferred compensation plan | $ | 93.8 | $ | 90.5 | |||
Amounts recoverable for capping, closure and post-closure obligations | 27.8 | 25.9 | |||||
Reinsurance receivable | 61.4 | 44.0 | |||||
Interest rate swaps | 27.9 | 16.5 | |||||
Other | 83.1 | 83.7 | |||||
Total | $ | 294.0 | $ | 260.6 |
2016 | 2015 | ||||||
Accrued payroll and benefits | $ | 169.3 | $ | 187.8 | |||
Accrued fees and taxes | 134.2 | 126.5 | |||||
Insurance reserves, current portion | 138.5 | 127.7 | |||||
Ceded insurance reserves, current portion | 13.1 | 12.5 | |||||
Accrued dividends | 109.0 | 103.7 | |||||
Current tax liabilities | 2.1 | 0.5 | |||||
Fuel hedge fair value and settlements payable | 16.1 | 41.0 | |||||
Accrued professional fees and legal settlement reserves | 32.8 | 44.2 | |||||
Other | 89.1 | 72.7 | |||||
Total | $ | 704.2 | $ | 716.6 |
2016 | 2015 | ||||||
Deferred compensation plan | $ | 86.4 | $ | 83.3 | |||
Pension and other post-retirement liabilities | 11.3 | 12.1 | |||||
Legal settlement reserves | 24.5 | 24.7 | |||||
Ceded insurance reserves | 61.4 | 44.0 | |||||
Withdrawal liability - multiemployer pension funds | 11.7 | 6.1 | |||||
Contingent consideration and acquisition holdbacks | 66.3 | 78.0 | |||||
Interest rate locks liability | 20.3 | — | |||||
Other | 56.0 | 61.1 | |||||
Total | $ | 337.9 | $ | 309.3 |
2016 | 2015 | ||||||
Landfill final capping, closure and post-closure liabilities | $ | 1,211.9 | $ | 1,181.6 | |||
Environmental remediation liabilities | 615.1 | 646.1 | |||||
Total accrued landfill and environmental costs | 1,827.0 | 1,827.7 | |||||
Less: current portion | (177.0 | ) | (149.8 | ) | |||
Long-term portion | $ | 1,650.0 | $ | 1,677.9 |
2016 | 2015 | ||||||
Asset retirement obligation liabilities, beginning of year | $ | 1,181.6 | $ | 1,144.3 | |||
Non-cash additions | 30.4 | 29.9 | |||||
Acquisitions and other adjustments | 0.5 | 11.4 | |||||
Asset retirement obligation adjustments | (3.2 | ) | (5.9 | ) | |||
Payments | (56.7 | ) | (50.4 | ) | |||
Accretion expense | 59.3 | 59.2 | |||||
Asset retirement obligation liabilities, end of period | 1,211.9 | 1,188.5 | |||||
Less: current portion | (94.3 | ) | (103.1 | ) | |||
Long-term portion | $ | 1,117.6 | $ | 1,085.4 |
2016 | 2015 | ||||||
Environmental remediation liabilities, beginning of year | $ | 646.1 | $ | 697.5 | |||
Net additions charged to expense | 0.3 | (1.3 | ) | ||||
Payments | (50.7 | ) | (50.1 | ) | |||
Accretion expense (non-cash interest expense) | 17.6 | 18.7 | |||||
Acquisitions and other adjustments | 1.8 | 2.8 | |||||
Environmental remediation liabilities, end of period | 615.1 | 667.6 | |||||
Less: current portion | (82.7 | ) | (76.1 | ) | |||
Long-term portion | $ | 532.4 | $ | 591.5 |
September 30, 2016 | December 31, 2015 | |||||||||||||||||||||||||
Maturity | Interest Rate | Principal | Adjustments | Carrying Value | Principal | Adjustments | Carrying Value | |||||||||||||||||||
Credit facilities: | ||||||||||||||||||||||||||
Uncommitted Credit Facility | Variable | $ | 73.0 | $ | — | $ | 73.0 | $ | 19.0 | $ | — | $ | 19.0 | |||||||||||||
June 2019 | Variable | 70.0 | — | 70.0 | — | — | — | |||||||||||||||||||
May 2021 | Variable | 140.0 | — | 140.0 | — | — | — | |||||||||||||||||||
Senior notes: | ||||||||||||||||||||||||||
May 2018 | 3.800 | 700.0 | (1.4 | ) | 698.6 | 700.0 | (2.0 | ) | 698.0 | |||||||||||||||||
September 2019 | 5.500 | 650.0 | (3.5 | ) | 646.5 | 650.0 | (4.4 | ) | 645.6 | |||||||||||||||||
March 2020 | 5.000 | 850.0 | (2.8 | ) | 847.2 | 850.0 | (3.4 | ) | 846.6 | |||||||||||||||||
November 2021 | 5.250 | 600.0 | (2.0 | ) | 598.0 | 600.0 | (2.3 | ) | 597.7 | |||||||||||||||||
June 2022 | 3.550 | 850.0 | (5.8 | ) | 844.2 | 850.0 | (6.5 | ) | 843.5 | |||||||||||||||||
May 2023 | 4.750 | 550.0 | 19.4 | 569.4 | 550.0 | 9.4 | 559.4 | |||||||||||||||||||
March 2025 | 3.200 | 500.0 | (5.6 | ) | 494.4 | 500.0 | (6.0 | ) | 494.0 | |||||||||||||||||
June 2026 | 2.900 | 500.0 | (5.6 | ) | 494.4 | — | — | — | ||||||||||||||||||
March 2035 | 6.086 | 181.9 | (15.6 | ) | 166.3 | 275.7 | (23.9 | ) | 251.8 | |||||||||||||||||
March 2040 | 6.200 | 399.9 | (4.0 | ) | 395.9 | 650.0 | (6.6 | ) | 643.4 | |||||||||||||||||
May 2041 | 5.700 | 385.7 | (5.6 | ) | 380.1 | 600.0 | (8.9 | ) | 591.1 | |||||||||||||||||
Debentures: | ||||||||||||||||||||||||||
May 2021 | 9.250 | 35.3 | (1.2 | ) | 34.1 | 35.3 | (1.4 | ) | 33.9 | |||||||||||||||||
September 2035 | 7.400 | 148.1 | (35.3 | ) | 112.8 | 165.2 | (39.9 | ) | 125.3 | |||||||||||||||||
Tax-exempt: | ||||||||||||||||||||||||||
2019 - 2044 | 0.500 - 5.625 | 1,079.1 | (6.5 | ) | 1,072.6 | 1,079.1 | (7.0 | ) | 1,072.1 | |||||||||||||||||
Capital leases: | ||||||||||||||||||||||||||
2016 - 2046 | 4.000 - 12.203 | 107.8 | — | 107.8 | 111.5 | — | 111.5 | |||||||||||||||||||
Total Debt | $ | 7,820.8 | $ | (75.5 | ) | 7,745.3 | $ | 7,635.8 | $ | (102.9 | ) | 7,532.9 | ||||||||||||||
Less: current portion | (5.7 | ) | (5.5 | ) | ||||||||||||||||||||||
Long-term portion | $ | 7,739.6 | $ | 7,527.4 |
Loss on Extinguishment of Debt | ||||||||||||||||||||
Principal Repaid | Cash Paid in Loss on Extinguishment of Debt | Non-cash Loss on Extinguishment of Debt | Total Loss on Extinguishment of Debt | Non-cash Interest Expense | ||||||||||||||||
$275.7 million 6.09% senior notes due March 2035 | $ | 93.8 | $ | 26.1 | $ | 8.0 | $ | 34.1 | $ | (1.1 | ) | |||||||||
$165.2 million 7.40% debentures due September 2035 | 17.2 | 7.3 | 4.1 | 11.4 | — | |||||||||||||||
$650.0 million 6.20% senior notes due March 2040 | 250.1 | 85.3 | 2.6 | 87.9 | 1.0 | |||||||||||||||
$600.0 million 5.70% senior notes due May 2041 | 214.3 | 59.7 | 3.1 | 62.8 | 7.3 | |||||||||||||||
Total | $ | 178.4 | $ | 17.8 | $ | 196.2 | $ | 7.2 |
Number of Shares (in millions) | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (years) | Aggregate Intrinsic Value (in millions) | |||||||||
Outstanding as of December 31, 2015 | 5.0 | $ | 30.08 | |||||||||
Granted | — | — | ||||||||||
Exercised | (1.2 | ) | 29.49 | $ | 22.6 | |||||||
Forfeited or expired | (0.1 | ) | 31.60 | |||||||||
Outstanding as of September 30, 2016 | 3.7 | $ | 30.23 | 2.5 | $ | 73.7 | ||||||
Exercisable as of September 30, 2016 | 2.9 | $ | 29.88 | 2.2 | $ | 61.5 |
Number of RSUs (in thousands) | Weighted Average Grant Date Fair Value per Share | Weighted Average Remaining Contractual Term (years) | Aggregate Intrinsic Value (in millions) | |||||||||
Outstanding as of December 31, 2015 | 1,727.3 | $ | 34.15 | |||||||||
Granted | 623.0 | 45.09 | ||||||||||
Vested and issued | (342.5 | ) | 30.21 | |||||||||
Forfeited | (162.1 | ) | 38.61 | |||||||||
Outstanding as of September 30, 2016 | 1,845.7 | $ | 37.38 | 1.0 | $ | 93.1 | ||||||
Vested and unissued as of September 30, 2016 | 624.3 | $ | 31.25 |
Number of PSUs (in thousands) | Weighted Average Grant Date Fair Value per Share | |||||
Outstanding as of December 31, 2015 | 143.4 | $ | 38.69 | |||
Granted | 393.8 | 46.22 | ||||
Vested and issued | — | — | ||||
Forfeited | (38.9 | ) | 43.50 | |||
Outstanding as of September 30, 2016 | 498.3 | $ | 44.40 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||
Number of shares repurchased | 2.2 | 2.3 | 6.5 | 7.3 | ||||||||||
Amount paid | $ | 110.5 | $ | 93.8 | $ | 306.6 | $ | 293.3 | ||||||
Weighted average cost per share | $ | 50.75 | $ | 40.89 | $ | 47.83 | $ | 40.66 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Basic earnings per share: | |||||||||||||||
Net income attributable to Republic Services, Inc. | $ | 85,600 | $ | 215,000 | $ | 423,100 | $ | 577,700 | |||||||
Weighted average common shares outstanding | 342,611 | 348,935 | 343,968 | 350,966 | |||||||||||
Basic earnings per share | $ | 0.25 | $ | 0.62 | $ | 1.23 | $ | 1.65 | |||||||
Diluted earnings per share: | |||||||||||||||
Net income attributable to Republic Services, Inc. | $ | 85,600 | $ | 215,000 | $ | 423,100 | $ | 577,700 | |||||||
Weighted average common shares outstanding | 342,611 | 348,935 | 343,968 | 350,966 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Options to purchase common stock | 1,040 | 1,196 | 1,097 | 1,271 | |||||||||||
Unvested RSU awards | 204 | 136 | 172 | 127 | |||||||||||
Unvested PSU awards | 125 | 14 | 82 | 8 | |||||||||||
Weighted average common and common equivalent shares outstanding | 343,980 | 350,281 | 345,319 | 352,372 | |||||||||||
Diluted earnings per share | $ | 0.25 | $ | 0.61 | $ | 1.23 | $ | 1.64 | |||||||
Antidilutive securities not included in the diluted earnings per share calculations: | |||||||||||||||
Options to purchase common stock | — | 9 | — | 14 |
Cash Flow Hedges | Defined Benefit Pension Items | Total | |||||||||
Balance as of December 31, 2015 | $ | 41.6 | $ | (11.1 | ) | $ | 30.5 | ||||
Other comprehensive loss before reclassifications | 14.1 | — | 14.1 | ||||||||
Amounts reclassified from accumulated other comprehensive income | (21.6 | ) | — | (21.6 | ) | ||||||
Net current period other comprehensive (income) | (7.5 | ) | — | (7.5 | ) | ||||||
Balance as of September 30, 2016 | $ | 34.1 | $ | (11.1 | ) | $ | 23.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||
Details about Accumulated Other Comprehensive Loss (Income) Components | Amount Reclassified from Accumulated Other Comprehensive Loss (Income) | Amount Reclassified from Accumulated Other Comprehensive Loss (Income) | Affected Line Item in the Statement where Net Income is Presented | |||||||||||||||
Gain (loss) on cash flow hedges: | ||||||||||||||||||
Fuel hedges | $ | (8.0 | ) | $ | (7.5 | ) | $ | (26.7 | ) | $ | (19.4 | ) | Cost of operations | |||||
Terminated interest rate locks | (7.8 | ) | (0.7 | ) | (9.1 | ) | (2.0 | ) | Interest expense | |||||||||
(15.8 | ) | (8.2 | ) | (35.8 | ) | (21.4 | ) | Total before tax | ||||||||||
6.3 | 3.2 | 14.2 | 8.5 | Tax benefit | ||||||||||||||
Total loss reclassified into earnings | $ | (9.5 | ) | $ | (5.0 | ) | $ | (21.6 | ) | $ | (12.9 | ) | Net of tax |
Year | Gallons Hedged | Weighted Average Contract Price per Gallon | ||
2016 | 6,750,000 | 3.57 | ||
2017 | 12,000,000 | 2.92 | ||
2018 | 3,000,000 | 2.61 |
Fair Value Measurements Using | |||||||||||||||||||
Carrying Amount | Total as of September 30, 2016 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||||
Money market mutual funds | $ | 27.2 | $ | 27.2 | $ | 27.2 | $ | — | $ | — | |||||||||
Bonds - restricted cash and marketable securities and other assets | 54.0 | 54.0 | — | 54.0 | — | ||||||||||||||
Interest rate swaps - other assets | 27.9 | 27.9 | — | 27.9 | — | ||||||||||||||
Total assets | $ | 109.1 | $ | 109.1 | $ | 27.2 | $ | 81.9 | $ | — | |||||||||
Liabilities: | |||||||||||||||||||
Fuel hedges - other accrued liabilities | $ | 12.8 | $ | 12.8 | $ | — | $ | 12.8 | $ | — | |||||||||
Commodity hedges - other accrued liabilities | 0.7 | 0.7 | — | 0.7 | — | ||||||||||||||
Interest rate locks - other long-term liabilities | 20.3 | 20.3 | — | 20.3 | — | ||||||||||||||
Contingent consideration - other long-term liabilities | 69.1 | 69.1 | — | — | 69.1 | ||||||||||||||
Total liabilities | $ | 102.9 | $ | 102.9 | $ | — | $ | 33.8 | $ | 69.1 |
Fair Value Measurements Using | |||||||||||||||||||
Carrying Amount | Total as of December 31, 2015 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Assets: | |||||||||||||||||||
Money market mutual funds | $ | 43.0 | $ | 43.0 | $ | 43.0 | $ | — | $ | — | |||||||||
Bonds - restricted cash and marketable securities and other assets | 56.3 | 56.3 | — | 56.3 | — | ||||||||||||||
Interest rate swaps - other assets | 16.5 | 16.5 | — | 16.5 | — | ||||||||||||||
Total assets | $ | 115.8 | $ | 115.8 | $ | 43.0 | $ | 72.8 | $ | — | |||||||||
Liabilities: | |||||||||||||||||||
Fuel hedges - other accrued liabilities | $ | 37.8 | $ | 37.8 | $ | — | $ | 37.8 | $ | — | |||||||||
Contingent consideration- other long-term liabilities | 69.6 | 69.6 | — | — | 69.6 | ||||||||||||||
Total liabilities | $ | 107.4 | $ | 107.4 | $ | — | $ | 37.8 | $ | 69.6 |
Gross Revenue | Intercompany Revenue | Net Revenue | Depreciation, Amortization, Depletion and Accretion | Operating Income (Loss) | Capital Expenditures | Total Assets | |||||||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||||||
Group 1 | $ | 1,347.9 | $ | (269.3 | ) | $ | 1,078.6 | $ | 105.9 | $ | 235.1 | $ | 119.3 | $ | 9,199.3 | ||||||||||||
Group 2 | 1,516.5 | (235.5 | ) | 1,281.0 | 136.2 | 261.8 | 96.4 | 9,908.9 | |||||||||||||||||||
Corporate entities | 53.2 | (3.5 | ) | 49.7 | 30.0 | (79.0 | ) | 11.0 | 1,553.5 | ||||||||||||||||||
Total | $ | 2,917.6 | $ | (508.3 | ) | $ | 2,409.3 | $ | 272.1 | $ | 417.9 | $ | 226.7 | $ | 20,661.7 | ||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||||||||||
Group 1 | $ | 1,295.8 | $ | (259.5 | ) | $ | 1,036.3 | $ | 101.2 | $ | 220.8 | $ | 125.0 | $ | 9,341.5 | ||||||||||||
Group 2 | 1,492.6 | (227.0 | ) | 1,265.6 | 139.1 | 239.0 | 89.2 | 9,929.2 | |||||||||||||||||||
Corporate entities | 45.5 | (3.4 | ) | 42.1 | 26.5 | (16.9 | ) | 18.6 | 1,521.1 | ||||||||||||||||||
Total | $ | 2,833.9 | $ | (489.9 | ) | $ | 2,344.0 | $ | 266.8 | $ | 442.9 | $ | 232.8 | $ | 20,791.8 |
Gross Revenue | Intercompany Revenue | Net Revenue | Depreciation, Amortization, Depletion and Accretion | Operating Income (Loss) | Capital Expenditures | Total Assets | |||||||||||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||
Group 1 | $ | 3,907.9 | $ | (778.7 | ) | $ | 3,129.2 | $ | 313.0 | $ | 670.2 | $ | 337.8 | $ | 9,199.3 | ||||||||||||
Group 2 | 4,433.4 | (689.8 | ) | 3,743.6 | 405.3 | 748.4 | 259.1 | 9,908.9 | |||||||||||||||||||
Corporate entities | 145.8 | (10.1 | ) | 135.7 | 86.7 | (273.0 | ) | 141.8 | 1,553.5 | ||||||||||||||||||
Total | $ | 8,487.1 | $ | (1,478.6 | ) | $ | 7,008.5 | $ | 805.0 | $ | 1,145.6 | $ | 738.7 | $ | 20,661.7 | ||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||||||
Group 1 | $ | 3,764.6 | $ | (753.4 | ) | $ | 3,011.2 | $ | 295.6 | $ | 642.9 | $ | 318.7 | $ | 9,341.5 | ||||||||||||
Group 2 | 4,347.6 | (655.9 | ) | 3,691.7 | 408.5 | 717.4 | 266.7 | 9,929.2 | |||||||||||||||||||
Corporate entities | 131.8 | (9.9 | ) | 121.9 | 81.4 | (155.4 | ) | 146.6 | 1,521.1 | ||||||||||||||||||
Total | $ | 8,244.0 | $ | (1,419.2 | ) | $ | 6,824.8 | $ | 785.5 | $ | 1,204.9 | $ | 732.0 | $ | 20,791.8 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||
Collection: | |||||||||||||||||||||||||||
Residential | $ | 564.4 | 23.4 | % | $ | 564.9 | 24.1 | % | $ | 1,675.5 | 23.9 | % | $ | 1,682.4 | 24.7 | % | |||||||||||
Small-container commercial | 728.0 | 30.2 | 704.2 | 30.0 | 2,150.6 | 30.7 | 2,098.1 | 30.7 | |||||||||||||||||||
Large-container industrial | 511.7 | 21.2 | 497.2 | 21.2 | 1,480.5 | 21.1 | 1,412.1 | 20.7 | |||||||||||||||||||
Other | 9.4 | 0.4 | 10.9 | 0.5 | 28.3 | 0.4 | 30.2 | 0.4 | |||||||||||||||||||
Total collection | 1,813.5 | 75.2 | 1,777.2 | 75.8 | 5,334.9 | 76.1 | 5,222.8 | 76.5 | |||||||||||||||||||
Transfer | 304.9 | 289.3 | 869.9 | 831.7 | |||||||||||||||||||||||
Less: intercompany | (179.1 | ) | (174.9 | ) | (521.9 | ) | (510.3 | ) | |||||||||||||||||||
Transfer, net | 125.8 | 5.2 | 114.4 | 4.9 | 348.0 | 5.0 | 321.4 | 4.7 | |||||||||||||||||||
Landfill | 543.0 | 536.5 | 1,568.6 | 1,523.9 | |||||||||||||||||||||||
Less: intercompany | (249.7 | ) | (246.4 | ) | (726.9 | ) | (714.3 | ) | |||||||||||||||||||
Landfill, net | 293.3 | 12.2 | 290.1 | 12.4 | 841.7 | 12.0 | 809.6 | 11.9 | |||||||||||||||||||
Energy services | 17.3 | 0.7 | 22.1 | 0.9 | 53.1 | 0.8 | 73.3 | 1.1 | |||||||||||||||||||
Other: | |||||||||||||||||||||||||||
Sale of recycled commodities | 114.6 | 4.8 | 99.4 | 4.2 | 302.8 | 4.3 | 277.7 | 4.1 | |||||||||||||||||||
Other non-core | 44.8 | 1.9 | 40.8 | 1.8 | 128.0 | 1.8 | 120.0 | 1.7 | |||||||||||||||||||
Total other | 159.4 | 6.7 | 140.2 | 6.0 | 430.8 | 6.1 | 397.7 | 5.8 | |||||||||||||||||||
Total revenue | $ | 2,409.3 | 100.0 | % | $ | 2,344.0 | 100.0 | % | $ | 7,008.5 | 100.0 | % | $ | 6,824.8 | 100.0 | % |
2016 | 2015 | ||||||
Financing proceeds | $ | — | $ | 2.1 | |||
Holdback escrow | — | 16.8 | |||||
Capping, closure and post-closure obligations | 27.8 | 27.3 | |||||
Insurance | 57.8 | 54.1 | |||||
Total restricted cash and marketable securities | $ | 85.6 | $ | 100.3 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||||
Revenue | $ | 2,409.3 | 100.0 | % | $ | 2,344.0 | 100.0 | % | $ | 7,008.5 | 100.0 | % | $ | 6,824.8 | 100.0 | % | |||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||
Cost of operations | 1,476.7 | 61.3 | 1,390.2 | 59.3 | 4,298.7 | 61.3 | 4,114.9 | 60.3 | |||||||||||||||||||||||
Depreciation, amortization and depletion of property and equipment | 234.5 | 9.7 | 229.2 | 9.8 | 692.1 | 9.9 | 672.4 | 9.9 | |||||||||||||||||||||||
Amortization of other intangible assets and other assets | 17.9 | 0.7 | 17.9 | 0.8 | 53.6 | 0.8 | 53.9 | 0.8 | |||||||||||||||||||||||
Accretion | 19.7 | 0.8 | 19.7 | 0.8 | 59.3 | 0.8 | 59.2 | 0.9 | |||||||||||||||||||||||
Selling, general and administrative | 235.4 | 9.8 | 244.1 | 10.4 | 720.1 | 10.3 | 719.5 | 10.5 | |||||||||||||||||||||||
Withdrawal costs - multiemployer pension funds | — | — | — | — | 5.6 | 0.1 | — | — | |||||||||||||||||||||||
Restructuring charges | 7.2 | 0.3 | — | — | 33.5 | 0.5 | — | — | |||||||||||||||||||||||
Operating income | $ | 417.9 | 17.4 | % | $ | 442.9 | 18.9 | % | $ | 1,145.6 | 16.3 | % | $ | 1,204.9 | 17.6 | % |
Three Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | |||||||||||||||||||||||
Net | Diluted | Net | Diluted | |||||||||||||||||||||
Pre-tax | Income - | Earnings | Pre-tax | Income - | Earnings | |||||||||||||||||||
Income | Republic | per Share | Income | Republic | per Share | |||||||||||||||||||
As reported | $ | 126.9 | $ | 85.6 | $ | 0.25 | $ | 350.8 | $ | 215.0 | $ | 0.61 | ||||||||||||
Loss on extinguishment of debt and other related costs | 203.4 | 122.7 | 0.36 | — | — | — | ||||||||||||||||||
Restructuring charges | 7.2 | 4.3 | 0.01 | — | — | — | ||||||||||||||||||
Bridgeton insurance recovery | — | — | — | (50.0 | ) | (30.3 | ) | (0.08 | ) | |||||||||||||||
Total adjustments | 210.6 | 127.0 | 0.37 | (50.0 | ) | (30.3 | ) | (0.08 | ) | |||||||||||||||
As adjusted | $ | 337.5 | $ | 212.6 | $ | 0.62 | $ | 300.8 | $ | 184.7 | $ | 0.53 | ||||||||||||
Nine Months Ended September 30, 2016 | Nine Months Ended September 30, 2015 | |||||||||||||||||||||||
Net | Diluted | Net | Diluted | |||||||||||||||||||||
Pre-tax | Income - | Earnings | Pre-tax | Income - | Earnings | |||||||||||||||||||
Income | Republic | per Share(1) | Income | Republic | per Share(2) | |||||||||||||||||||
As reported | $ | 671.2 | $ | 423.1 | $ | 1.23 | $ | 934.0 | $ | 577.7 | $ | 1.64 | ||||||||||||
Loss on extinguishment of debt and other related costs | 203.4 | 122.7 | 0.36 | — | — | — | ||||||||||||||||||
Restructuring charges | 33.5 | 20.2 | 0.06 | — | — | — | ||||||||||||||||||
Withdrawal costs - multiemployer pension funds | 5.6 | 3.4 | 0.01 | — | — | — | ||||||||||||||||||
Bridgeton insurance recovery | — | — | — | (50.0 | ) | (30.3 | ) | (0.08 | ) | |||||||||||||||
Total adjustments | 242.5 | 146.3 | 0.42 | (50.0 | ) | (30.3 | ) | (0.08 | ) | |||||||||||||||
As adjusted | $ | 913.7 | $ | 569.4 | $ | 1.65 | $ | 884.0 | $ | 547.4 | $ | 1.55 | ||||||||||||
(Anticipated) Year Ending December 31, 2016 | |
Diluted earnings per share | $1.75 - $1.76 |
Withdrawal costs - multiemployer pension funds | 0.01 |
Restructuring charges | 0.07 |
Loss on extinguishment of debt and other related costs | 0.36 |
Adjusted diluted earnings per share | $2.19 - $2.20 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||
Collection: | ||||||||||||||||||||||||||
Residential | $ | 564.4 | 23.4 | % | $ | 564.9 | 24.1 | % | $ | 1,675.5 | 23.9 | % | $ | 1,682.4 | 24.7 | % | ||||||||||
Small-container commercial | 728.0 | 30.2 | 704.2 | 30.0 | 2,150.6 | 30.7 | 2,098.1 | 30.7 | ||||||||||||||||||
Large-container industrial | 511.7 | 21.2 | 497.2 | 21.2 | 1,480.5 | 21.1 | 1,412.1 | 20.7 | ||||||||||||||||||
Other | 9.4 | 0.4 | 10.9 | 0.5 | 28.3 | 0.4 | 30.2 | 0.4 | ||||||||||||||||||
Total collection | 1,813.5 | 75.2 | 1,777.2 | 75.8 | 5,334.9 | 76.1 | 5,222.8 | 76.5 | ||||||||||||||||||
Transfer | 304.9 | 289.3 | 869.9 | 831.7 | ||||||||||||||||||||||
Less: intercompany | (179.1 | ) | (174.9 | ) | (521.9 | ) | (510.3 | ) | ||||||||||||||||||
Transfer, net | 125.8 | 5.2 | 114.4 | 4.9 | 348.0 | 5.0 | 321.4 | 4.7 | ||||||||||||||||||
Landfill | 543.0 | 536.5 | 1,568.6 | 1,523.9 | ||||||||||||||||||||||
Less: intercompany | (249.7 | ) | (246.4 | ) | (726.9 | ) | (714.3 | ) | ||||||||||||||||||
Landfill, net | 293.3 | 12.2 | 290.1 | 12.4 | 841.7 | 12.0 | 809.6 | 11.9 | ||||||||||||||||||
Energy services | 17.3 | 0.7 | 22.1 | 0.9 | 53.1 | 0.8 | 73.3 | 1.1 | ||||||||||||||||||
Other: | ||||||||||||||||||||||||||
Sale of recycled commodities | 114.6 | 4.8 | 99.4 | 4.2 | 302.8 | 4.3 | 277.7 | 4.1 | ||||||||||||||||||
Other non-core | 44.8 | 1.9 | 40.8 | 1.8 | 128.0 | 1.8 | 120.0 | 1.7 | ||||||||||||||||||
Total other | 159.4 | 6.7 | 140.2 | 6.0 | 430.8 | 6.1 | 397.7 | 5.8 | ||||||||||||||||||
Total revenue | $ | 2,409.3 | 100.0 | % | $ | 2,344.0 | 100.0 | % | $ | 7,008.5 | 100.0 | % | $ | 6,824.8 | 100.0 | % | ||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Average yield | 2.1 | % | 2.5 | % | 2.0 | % | 2.4 | % | |||
Fuel recovery fees | (0.6 | ) | (1.5 | ) | (1.0 | ) | (1.3 | ) | |||
Total price | 1.5 | 1.0 | 1.0 | 1.1 | |||||||
Volume | 0.6 | 0.6 | 1.2 | 1.2 | |||||||
Recycled commodities | 0.7 | (0.6 | ) | 0.3 | (0.8 | ) | |||||
Energy services | (0.3 | ) | — | (0.5 | ) | — | |||||
Total internal growth | 2.5 | 1.0 | 2.0 | 1.5 | |||||||
Acquisitions / divestitures, net | 0.3 | 2.4 | 0.7 | 2.3 | |||||||
Total | 2.8 | % | 3.4 | % | 2.7 | % | 3.8 | % | |||
Core price | 3.2 | % | 3.6 | % | 3.2 | % | 3.6 | % | |||
• | Average yield increased revenue by 2.1% and 2.0% for the three and nine months ended September 30, 2016, respectively, due to positive pricing in all lines of business. |
• | The fuel recovery fee program, which mitigates our exposure to increases in fuel prices, decreased revenue by 0.6% and 1.0% during the three and nine months ended September 30, 2016, respectively. These fees fluctuate with the price of fuel and, consequently, any decrease in fuel prices results in a decrease in our revenue. Lower fuel recovery fees for the three and nine months ended September 30, 2016 resulted primarily from the decrease in fuel prices. |
• | Volume increased revenue by 0.6% and 1.2% during the three and nine months ended September 30, 2016, respectively, primarily due to volume growth in our large-container industrial collection, landfill and transfer station lines of business, which were partially offset by volume declines in our residential collection line of business. The volume increase in our landfill line of business is primarily attributable to increased construction and demolition and municipal solid waste volumes. The volume increases for the three months ended September 30, 2016 were partially offset by a decrease in special waste volume in our landfill line of business. The volume increase for the nine months ended September 30, 2016 also included 0.2% of contribution from one additional workday. |
• | Recycled commodities increased revenue by 0.7% and 0.3% during the three and nine months ended September 30, 2016, respectively, due to increased commodity prices and processing fees. The average price for old corrugated cardboard for the three and nine months ended September 30, 2016 was $125 and $109 per ton, respectively, compared to $111 and $102 per ton for the same periods in 2015, respectively. The average price of old newspaper for the three and nine months ended September 30, 2016 was $114 and $92 per ton, respectively, compared to $85 and $82 per ton for the same periods in 2015, respectively. Our processed recycled commodity volume for the three and nine months ended September 30, 2016 of 0.7 million tons sold and 1.9 million tons sold, respectively, was approximately the same when compared to the volume for the same periods in 2015, respectively. |
• | Acquisitions increased revenue by 0.3% and 0.7% during the three and nine months ended September 30, 2016, respectively, due to our continued acquisition growth strategy of acquiring privately held solid waste and recycling companies that complement our existing business platform. |
• | Energy services decreased revenue by 0.3% and 0.5% during the three and nine months ended September 30, 2016, respectively, due primarily to the reduction in drilling activity resulting from the decline in the price of oil. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||
Labor and related benefits | $ | 484.3 | 20.1 | % | $ | 475.5 | 20.3 | % | $ | 1,432.2 | 20.4 | % | $ | 1,379.0 | 20.2 | % | ||||||||||||||
Transfer and disposal costs | 194.8 | 8.1 | 188.3 | 8.0 | 568.6 | 8.1 | 537.5 | 7.9 | ||||||||||||||||||||||
Maintenance and repairs | 231.7 | 9.6 | 223.7 | 9.5 | 673.7 | 9.6 | 636.5 | 9.3 | ||||||||||||||||||||||
Transportation and subcontract costs | 142.3 | 5.9 | 132.6 | 5.7 | 397.9 | 5.7 | 382.0 | 5.6 | ||||||||||||||||||||||
Fuel | 82.0 | 3.4 | 94.9 | 4.0 | 232.6 | 3.3 | 288.9 | 4.2 | ||||||||||||||||||||||
Franchise fees and taxes | 116.0 | 4.8 | 115.1 | 4.9 | 339.0 | 4.8 | 332.2 | 4.9 | ||||||||||||||||||||||
Landfill operating costs | 43.6 | 1.8 | 35.3 | 1.5 | 131.5 | 1.9 | 110.2 | 1.6 | ||||||||||||||||||||||
Risk management | 49.3 | 2.0 | 43.6 | 1.9 | 141.7 | 2.0 | 118.9 | 1.8 | ||||||||||||||||||||||
Cost of goods sold | 49.3 | 2.0 | 43.8 | 1.9 | 131.8 | 1.9 | 125.3 | 1.8 | ||||||||||||||||||||||
Other | 83.4 | 3.6 | 87.4 | 3.7 | 249.7 | 3.6 | 254.4 | 3.7 | ||||||||||||||||||||||
Subtotal | 1,476.7 | 61.3 | 1,440.2 | 61.4 | 4,298.7 | 61.3 | 4,164.9 | 61.0 | ||||||||||||||||||||||
Bridgeton insurance recovery | — | — | (50.0 | ) | (2.1 | ) | — | — | (50.0 | ) | (0.7 | ) | ||||||||||||||||||
Total cost of operations | $ | 1,476.7 | 61.3 | % | $ | 1,390.2 | 59.3 | % | $ | 4,298.7 | 61.3 | % | $ | 4,114.9 | 60.3 | % | ||||||||||||||
• | Labor and related benefits increased due to increased hourly and salaried wages as a result of merit increases, increased headcount, higher collection volumes, and higher health care costs. |
• | Transfer and disposal costs increased primarily due to higher collection volumes. During each of the three and nine months ended September 30, 2016 and 2015, approximately 68% of the total waste volume we collected was disposed at landfill sites that we own or operate (internalization). |
• | Maintenance and repairs expense increased due to higher collection volumes, cost of parts, internal labor, third party truck repairs, vehicle complexity and costs associated with our fleet maintenance initiative. |
• | Transportation and subcontract costs increased primarily due to higher collection and transfer station volumes, partially offset by lower fuel surcharges due to the decline in diesel fuel. |
• | Our fuel costs decreased due to lower prices of diesel fuel and our continued conversion to lower cost compressed natural gas (CNG). The national average diesel fuel cost per gallon for the three months ended September 30, 2016 was $2.38 compared to $2.63 for the same period in 2015, a decrease of $0.25 or approximately 9%. The national average diesel fuel cost per gallon for the nine months ended September 30, 2016 was $2.25 compared to $2.80 for the same period in 2015, a decrease of $0.55 or approximately 20%. |
• | Landfill operating expenses increased due to volume increases in our landfill line of business and increased leachate transportation and disposal costs. Additionally, during the nine months ended September 30, 2015, we recorded favorable remediation adjustments that did not recur for the same period in 2016. |
• | Risk management expenses increased primarily due to favorable actuarial developments in our workers' compensation program recorded during the three and nine months ended September 30, 2015 that were less favorable for the same periods in 2016, coupled with continued unfavorable actuarial development in our vehicle liability insurance program. |
• | During the three and nine months ended September 30, 2016, cost of goods sold increased primarily due to higher rebates paid for volumes delivered to our recycling facilities as a result of the increase in commodity prices. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||
Depreciation and amortization of property and equipment | $ | 157.7 | 6.5 | % | $ | 153.4 | 6.6 | % | $ | 470.4 | 6.7 | % | $ | 457.1 | 6.7 | % | ||||||||||||||
Landfill depletion and amortization | 76.8 | 3.2 | 75.8 | 3.2 | 221.7 | 3.2 | 215.3 | 3.2 | ||||||||||||||||||||||
Depreciation, amortization and depletion expense | $ | 234.5 | 9.7 | % | $ | 229.2 | 9.8 | % | $ | 692.1 | 9.9 | % | $ | 672.4 | 9.9 | % | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||
Salaries | $ | 161.6 | 6.7 | % | $ | 158.6 | 6.8 | % | $ | 474.8 | 6.8 | % | $ | 466.9 | 6.8 | % | ||||||||||||||
Provision for doubtful accounts | 6.0 | 0.2 | 6.2 | 0.2 | 17.5 | 0.2 | 17.3 | 0.3 | ||||||||||||||||||||||
Other | 67.8 | 2.9 | 79.3 | 3.4 | 227.8 | 3.3 | 235.3 | 3.4 | ||||||||||||||||||||||
Total selling, general and administrative expenses | $ | 235.4 | 9.8 | % | $ | 244.1 | 10.4 | % | $ | 720.1 | 10.3 | % | $ | 719.5 | 10.5 | % | ||||||||||||||
• | Salaries increased slightly due to higher wages, higher health care costs, and other payroll related items resulting from merit increases. |
• | Other selling, general and administrative expenses decreased for the three and nine months ended September 30, 2016, primarily due to favorable settlement results. Additionally, for the nine months ended September 30, 2016, we had a reduction in acquisition-related transaction and integration costs associated with our acquisition of Tervita in February 2015 that did not recur in 2016. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest expense on debt and capital lease obligations | $ | 79.4 | $ | 82.0 | $ | 243.9 | $ | 241.7 | |||||||
Accretion of debt discounts | 1.9 | 1.9 | 5.8 | 5.5 | |||||||||||
Accretion of remediation liabilities and other | 16.8 | 10.2 | 36.1 | 29.7 | |||||||||||
Less: capitalized interest | (1.8 | ) | (2.3 | ) | (4.5 | ) | (4.9 | ) | |||||||
Total interest expense | $ | 96.3 | $ | 91.8 | $ | 281.3 | $ | 272.0 | |||||||
Loss on Extinguishment of Debt | ||||||||||||||||||||
Principal Repaid | Cash Paid in Loss on Extinguishment of Debt | Non-cash Loss on Extinguishment of Debt | Total Loss on Extinguishment of Debt | Non-cash Interest Expense | ||||||||||||||||
$275.7 million 6.09% Senior Notes due March 2035 | $ | 93.8 | $ | 26.1 | $ | 8.0 | $ | 34.1 | $ | (1.1 | ) | |||||||||
$165.2 million 7.40% Debentures due September 2035 | 17.2 | 7.3 | 4.1 | 11.4 | — | |||||||||||||||
$650.0 million 6.20% Senior Notes due March 2040 | 250.1 | 85.3 | 2.6 | 87.9 | 1.0 | |||||||||||||||
$600.0 million 5.70% Senior Notes due May 2041 | 214.3 | 59.7 | 3.1 | 62.8 | 7.3 | |||||||||||||||
Total | $ | 178.4 | $ | 17.8 | $ | 196.2 | $ | 7.2 |
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 | Operating Income (Loss) | Operating Margin | |||||||||||||||||
Three Months Ended September 30, 2016 | ||||||||||||||||||||||
Group 1 | $ | 1,078.6 | $ | 105.9 | $ | — | $ | 105.9 | $ | 235.1 | 21.8 | % | ||||||||||
Group 2 | 1,281.0 | 136.5 | (0.3 | ) | 136.2 | 261.8 | 20.4 | |||||||||||||||
Corporate entities | 49.7 | 30.0 | — | 30.0 | (79.0 | ) | — | |||||||||||||||
Total | $ | 2,409.3 | $ | 272.4 | $ | (0.3 | ) | $ | 272.1 | $ | 417.9 | 17.3 | % | |||||||||
Three Months Ended September 30, 2015 | ||||||||||||||||||||||
Group 1 | $ | 1,036.3 | $ | 101.2 | $ | — | $ | 101.2 | $ | 220.8 | 21.3 | % | ||||||||||
Group 2 | 1,265.6 | 137.9 | 1.2 | 139.1 | 239.0 | 18.9 | ||||||||||||||||
Corporate entities | 42.1 | 26.5 | — | 26.5 | (16.9 | ) | — | |||||||||||||||
Total | $ | 2,344.0 | $ | 265.6 | $ | 1.2 | $ | 266.8 | $ | 442.9 | 18.9 | % |
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 | Operating Income (Loss) | Operating Margin | |||||||||||||||||
Nine Months Ended September 30, 2016 | ||||||||||||||||||||||
Group 1 | $ | 3,129.2 | $ | 313.0 | $ | — | $ | 313.0 | $ | 670.2 | 21.4 | % | ||||||||||
Group 2 | 3,743.6 | 406.0 | (0.7 | ) | 405.3 | 748.4 | 20.0 | |||||||||||||||
Corporate entities | 135.7 | 87.2 | (0.5 | ) | 86.7 | (273.0 | ) | — | ||||||||||||||
Total | $ | 7,008.5 | $ | 806.2 | $ | (1.2 | ) | $ | 805.0 | $ | 1,145.6 | 16.3 | % | |||||||||
Nine Months Ended September 30, 2015 | ||||||||||||||||||||||
Group 1 | $ | 3,011.2 | $ | 295.8 | $ | (0.2 | ) | $ | 295.6 | $ | 642.9 | 21.4 | % | |||||||||
Group 2 | 3,691.7 | 407.9 | 0.6 | 408.5 | 717.4 | 19.4 | ||||||||||||||||
Corporate entities | 121.9 | 81.4 | — | 81.4 | (155.4 | ) | ||||||||||||||||
Total | $ | 6,824.8 | $ | 785.1 | $ | 0.4 | $ | 785.5 | $ | 1,204.9 | 17.7 | % |
• | Cost of operations favorably impacted operating income margin during the three and nine months ended September 30, 2016, primarily due to lower fuel costs resulting from lower prices of diesel fuel and lower risk management expenses. These favorable items were partially offset by higher cost of goods sold, landfill operating costs, labor and related benefits costs, and repair and maintenance costs. |
• | Landfill depletion and amortization unfavorably impacted operating income margin for the three and nine months ended September 30, 2016, primarily due to an overall increase in the average depletion rate. |
• | Selling, general and administrative expenses had a minimal impact on operating income margin for the three and nine months ended September 30, 2016. |
• | Cost of operations favorably impacted operating income margin for the three and nine months ended September 30, 2016, primarily due to lower fuel costs resulting from lower prices of diesel fuel and lower risk management expenses. These favorable items were partially offset by higher cost of goods sold and landfill operating costs. |
• | Landfill depletion and amortization favorably impacted operating income margin for the three and nine months ended September 30, 2016, primarily due to a decrease in the average depletion rate. Landfill depletion and amortization |
• | Selling, general and administrative costs had a minimal impact on operating income margin for the three and nine months ended September 30, 2016. |
Balance as of December 31, 2015 | New Expansions Undertaken | Permits Granted, Net of Closures | Airspace Consumed | Changes in Engineering Estimates | Balance as of September 30, 2016 | ||||||||||||
Cubic yards (in millions): | |||||||||||||||||
Permitted airspace | 4,676.5 | — | 68.2 | (59.5 | ) | (0.2 | ) | 4,685.0 | |||||||||
Probable expansion airspace | 290.1 | 30.1 | (30.0 | ) | — | — | 290.2 | ||||||||||
Total cubic yards (in millions) | 4,966.6 | 30.1 | 38.2 | (59.5 | ) | (0.2 | ) | 4,975.2 | |||||||||
Number of sites: | |||||||||||||||||
Permitted airspace | 193 | (1 | ) | 192 | |||||||||||||
Probable expansion airspace | 12 | 2 | (1 | ) | 13 |
Balance as of December 31, 2015 | Capital Additions (Amortization) | Non-cash Additions for Asset Retirement Obligations | Impairments, Transfers and Other Adjustments | Adjustments for Asset Retirement Obligations | Balance as of September 30, 2016 | ||||||||||||||||||
Non-depletable landfill land | $ | 165.6 | $ | 0.1 | $ | — | $ | — | $ | — | $ | 165.7 | |||||||||||
Landfill development costs | 6,078.1 | 6.8 | 30.4 | 141.0 | (3.2 | ) | 6,253.1 | ||||||||||||||||
Construction-in-progress - landfill | 191.6 | 223.9 | — | (139.9 | ) | — | 275.6 | ||||||||||||||||
Accumulated depletion and amortization | (2,723.0 | ) | (222.9 | ) | — | — | 1.2 | (2,944.7 | ) | ||||||||||||||
Net investment in landfill land and development costs | $ | 3,712.3 | $ | 7.9 | $ | 30.4 | $ | 1.1 | $ | (2.0 | ) | $ | 3,749.7 |
Allowance for Doubtful Accounts and Other | Final Capping, Closure and Post-Closure | Remediation | Insurance | ||||||||||||
Balance as of December 31, 2015 | $ | 46.7 | $ | 1,181.6 | $ | 646.1 | $ | 405.8 | |||||||
Non-cash additions for asset retirement obligations | — | 30.4 | — | — | |||||||||||
Acquisitions and other adjustments | 3.0 | 0.5 | 1.8 | — | |||||||||||
Asset retirement obligation adjustments | — | (3.2 | ) | — | — | ||||||||||
Accretion expense | — | 59.3 | 17.6 | 1.2 | |||||||||||
Premium written for third-party risk assumed | — | — | — | 17.8 | |||||||||||
Reclass to ceded insurance reserves | — | — | — | (17.5 | ) | ||||||||||
Net additions charged (credited) to expense | 17.5 | — | 0.3 | 306.6 | |||||||||||
Payments or usage | (17.0 | ) | (56.7 | ) | (50.7 | ) | (295.3 | ) | |||||||
Balance as of September 30, 2016 | 50.2 | 1,211.9 | 615.1 | 418.6 | |||||||||||
Less: current portion | (50.2 | ) | (94.3 | ) | (82.7 | ) | (138.5 | ) | |||||||
Long-term portion | $ | — | $ | 1,117.6 | $ | 532.4 | $ | 280.1 |
Gross Property and Equipment | |||||||||||||||||||||||||||||||
Balance as of December 31, 2015 | 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, 2016 | ||||||||||||||||||||||||
Land | $ | 425.4 | $ | 0.2 | $ | (0.3 | ) | $ | 0.7 | $ | — | $ | — | $ | 0.2 | $ | 426.2 | ||||||||||||||
Non-depletable landfill land | 165.6 | 0.1 | — | — | — | — | — | 165.7 | |||||||||||||||||||||||
Landfill development costs | 6,078.1 | 6.8 | — | — | 30.4 | (3.2 | ) | 141.0 | 6,253.1 | ||||||||||||||||||||||
Vehicles and equipment | 6,211.8 | 409.8 | (161.7 | ) | 7.6 | — | — | 27.5 | 6,495.0 | ||||||||||||||||||||||
Buildings and improvements | 1,098.6 | 7.4 | (2.9 | ) | 3.8 | — | — | 26.0 | 1,132.9 | ||||||||||||||||||||||
Construction-in- progress - landfill | 191.6 | 223.9 | — | — | — | — | (139.9 | ) | 275.6 | ||||||||||||||||||||||
Construction-in- progress - other | 25.5 | 78.4 | — | (0.4 | ) | — | — | (58.7 | ) | 44.8 | |||||||||||||||||||||
Total | $ | 14,196.6 | $ | 726.6 | $ | (164.9 | ) | $ | 11.7 | $ | 30.4 | $ | (3.2 | ) | $ | (3.9 | ) | $ | 14,793.3 |
Accumulated Depreciation, Amortization and Depletion | |||||||||||||||||||||||
Balance as of December 31, 2015 | Additions Charged to Expense | Retirements | Adjustments for Asset Retirement Obligations | Impairments, Transfers and Other Adjustments | Balance as of September 30, 2016 | ||||||||||||||||||
Landfill development costs | $ | (2,723.0 | ) | $ | (222.9 | ) | $ | — | $ | 1.2 | $ | — | $ | (2,944.7 | ) | ||||||||
Vehicles and equipment | (3,555.0 | ) | (431.9 | ) | 157.3 | — | (0.2 | ) | (3,829.8 | ) | |||||||||||||
Buildings and improvements | (365.8 | ) | (39.8 | ) | 2.4 | — | 0.4 | (402.8 | ) | ||||||||||||||
Total | $ | (6,643.8 | ) | $ | (694.6 | ) | $ | 159.7 | $ | 1.2 | $ | 0.2 | $ | (7,177.3 | ) |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Cash provided by operating activities | $ | 1,359.6 | $ | 1,324.5 | |||
Cash used in investing activities | (752.4 | ) | (1,243.2 | ) | |||
Cash used in financing activities | (584.6 | ) | (54.0 | ) |
• | Our accounts receivable, exclusive of the change in allowance for doubtful accounts, increased $70.8 million during the nine months ended September 30, 2016 due to increased revenue, compared to a $39.8 million increase in the same period in 2015. As of September 30, 2016, our days sales outstanding, were 38, or 26 days net of deferred revenue, compared to 38, or 26 days net of deferred revenue, as of September 30, 2015. |
• | Our accounts payable decreased $19.5 million during the nine months ended September 30, 2016 due to the timing of payments, compared to an $11.7 million increase in the same period in 2015. |
• | In connection with our restructuring announced in January 2016, we paid $24.2 million primarily related to employee severance and relocation. |
• | Our other liabilities increased $54.8 million during the nine months ended September 30, 2016, compared to a $108.4 million increase in the same period in 2015. We paid (net of refunds) $145.7 million and $256.8 million for income taxes for the nine months ended September 30, 2016 and 2015, respectively. The decrease in cash paid for income taxes is primarily due to the expected deductions to be realized from our debt refinancing in July 2016. |
• | Cash paid for interest was $253.0 million and $244.8 million for the nine months ended September 30, 2016 and 2015, respectively. |
• | Capital expenditures during the nine months ended September 30, 2016 were $738.7 million, compared with $732.0 million in the same period in 2015. Property and equipment received during the nine months ended September 30, 2016 and 2015 was $725.0 million and $746.7 million, respectively. |
• | During the nine months ended September 30, 2016 and 2015, we paid $30.7 million and $535.9 million, respectively, for business acquisitions. |
• | Our restricted cash and marketable securities balances decreased $10.0 million and $8.4 million during the nine months ended September 30, 2016 and 2015, respectively. In part, changes in restricted cash and marketable securities are related to the issuance of tax-exempt bonds, collateral for certain of our obligations, amounts held in trust as a guarantee of performance and amounts held in escrow for acquisitions. Funds received from issuances of tax-exempt bonds are deposited directly into trust accounts by the bonding authority at the time of issuance. Reimbursements from the trust for qualifying expenditures or for repayments of the related tax-exempt bonds are presented as cash provided by investing activities in our consolidated statements of cash flows. |
• | During the three months ended September 30, 2016, we issued $500.0 million of notes for net cash proceeds of $498.9 million. Net payments of notes payable and long-term debt were $319.8 million during the nine months ended September 30, 2016, compared to net payments of $13.5 million in the same period in 2015. |
• | In October 2015, our board of directors added $900.0 million to the existing share repurchase authorization. As of September 30, 2016, there were 14.9 million shares remaining under our share repurchase authorization. During the nine months ended September 30, 2016, we repurchased 6.5 million shares of our stock for $306.6 million. |
• | Dividends paid were $309.9 million and $295.0 million during the nine months ended September 30, 2016 and 2015, respectively. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Cash provided by operating activities | $ | 515.3 | $ | 423.3 | $ | 1,359.6 | $ | 1,324.5 | |||||||
Purchases of property and equipment | (226.7 | ) | (232.8 | ) | (738.7 | ) | (732.0 | ) | |||||||
Proceeds from sales of property and equipment | 1.9 | 9.0 | 7.4 | 17.1 | |||||||||||
Free cash flow | $ | 290.5 | $ | 199.5 | $ | 628.3 | $ | 609.6 | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Purchases of property and equipment per the unaudited consolidated statements of cash flows | $ | 226.7 | $ | 232.8 | $ | 738.7 | $ | 732.0 | |||||||
Adjustments for property and equipment received during the prior period but paid for in the following period, net | (23.1 | ) | 9.3 | (13.7 | ) | 14.7 | |||||||||
Property and equipment received during the period | $ | 203.6 | $ | 242.1 | $ | 725.0 | $ | 746.7 | |||||||
• | general economic and market conditions, including inflation and changes in commodity pricing, fuel, interest rates, labor, risk, health insurance and other variable costs that generally are 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, final capping, closure, post-closure and remediation costs, available airspace, projected costs and expenses related to our landfills, fair values of acquired assets and liabilities assumed in our acquisitions, 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 and recycling 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; |
• | 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; |
• | our ability to retain our investment grade credit 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; |
• | exposure to environmental liabilities or remediation requirements, 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, including those brought about by climate change, 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 costs if we are required to provide additional funding to any multiemployer pension plan to which we contribute or if a withdrawal event occurs with respect to any such plan; |
• | 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; |
• | a cyber-security incident could negatively impact our business and our relationships with customers; and |
• | acts of war, riots or terrorism, including the continuing war on terrorism, as well as actions taken or to be taken by the United States or other governments as a result of further acts or threats of terrorism, and the impact of these acts on economic, financial and social conditions in the United States. |
ITEM 1. | LEGAL PROCEEDINGS. |
ITEM 1A. | RISK FACTORS. |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
Total Number of Shares 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 2016 | 42,600 | $ | 49.65 | 42,600 | $ | 657,347,046 | |||||||
August 2016 | 893,314 | 51.07 | 893,314 | 611,729,330 | |||||||||
September 2016 | 1,241,991 | 50.56 | 1,241,991 | 548,928,981 | |||||||||
2,177,905 | 2,177,905 |
(a) | In October 2015, our board of directors added $900.0 million to the existing share repurchase authorization that now extends through December 31, 2017. Share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws. While the board of directors has approved the program, the timing of any purchases, the prices and the number of shares of common stock to be purchased will be determined by our management, at its discretion, and will depend upon market conditions and other factors. The share repurchase program may be extended, suspended or discontinued at any time. As of September 30, 2016, 0.2 million repurchased shares were pending settlement and $9.1 million were unpaid and included within other accrued liabilities. |
(b) | The total number of shares purchased as part of the publicly announced program were all purchased pursuant to the October 2015 authorization. |
(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 units 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 | |
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: | October 27, 2016 | By: | /S/ CHARLES F. SERIANNI |
Charles F. Serianni | |||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||
Date: | October 27, 2016 | By: | /S/ BRIAN A. GOEBEL |
Brian A. Goebel | |||
Vice President and Chief Accounting Officer (Principal Accounting 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/ DONALD W. SLAGER | |
Donald W. Slager | |
President and Chief Executive Officer (Principal 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/ CHARLES F. SERIANNI | |
Charles F. Serianni | |
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 (Principal 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/ CHARLES F. SERIANNI | |
Charles F. Serianni | |
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Document and Entity Information - shares |
9 Months Ended | |
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Sep. 30, 2016 |
Oct. 20, 2016 |
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Document and Entity Information [Abstract] | ||
Entity Registrant Name | REPUBLIC SERVICES, INC. | |
Entity Central Index Key | 0001060391 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 339,961,875 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
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Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 50.2 | $ 46.7 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 347,700,000 | 346,000,000 |
Treasury stock, shares (in shares) | 6,900,000 | 400,000 |
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 85.7 | $ 215.2 | $ 423.6 | $ 578.0 |
Hedging activity: | ||||
Settlements | (4.8) | (4.6) | (16.2) | (11.0) |
Realized loss reclassified into earnings | 9.5 | 5.0 | 21.6 | 12.9 |
Unrealized (loss) gain | 3.2 | (5.3) | 2.1 | 0.5 |
Pension activity: | ||||
Change in funded status of pension plan obligations | 0.0 | 0.0 | 0.0 | (0.1) |
Other comprehensive (loss) income, net of tax | 7.9 | (4.9) | 7.5 | 2.3 |
Comprehensive income | 93.6 | 210.3 | 431.1 | 580.3 |
Comprehensive income attributable to noncontrolling interests | (0.1) | (0.2) | (0.5) | (0.3) |
Comprehensive income attributable to Republic Services, Inc. | $ 93.5 | $ 210.1 | $ 430.6 | $ 580.0 |
Unaudited Consolidated Statement of Stockholders' Equity - 9 months ended Sep. 30, 2016 - USD ($) shares in Millions, $ in Millions |
Total |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Treasury Stock |
Accumulated Other Comprehensive Loss, Net of Tax |
Noncontrolling Interests |
---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2015 | $ 7,776.6 | $ 3.5 | $ 4,677.7 | $ 3,138.3 | $ (14.9) | $ (30.5) | $ 2.5 |
Balance (in shares) at Dec. 31, 2015 | 346.0 | 0.4 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 423.6 | 423.1 | 0.5 | ||||
Other comprehensive income | 7.5 | 7.5 | |||||
Cash dividends declared | (315.2) | (315.2) | |||||
Issuances of common stock | 43.8 | 43.8 | |||||
Issuances of common stock (in shares) | 1.7 | ||||||
Stock-based compensation | 17.7 | 20.0 | (2.3) | ||||
Purchase of common stock for treasury | (311.8) | $ (311.8) | |||||
Purchase of common stock for treasury (in shares) | (6.5) | ||||||
Distributions paid to noncontrolling interests | (0.7) | (0.7) | |||||
Balance at Sep. 30, 2016 | $ 7,641.5 | $ 3.5 | $ 4,741.5 | $ 3,243.9 | $ (326.7) | $ (23.0) | $ 2.3 |
Balance (in shares) at Sep. 30, 2016 | 347.7 | 6.9 |
Basis of Presentation |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Republic Services, Inc., a Delaware corporation, and its consolidated subsidiaries (referred to collectively as Republic, the Company, we, us, or our), is the second largest provider of non-hazardous solid waste collection, transfer, recycling, disposal and energy services in the United States, as measured by revenue. We manage and evaluate our operations through two field groups, Group 1 and Group 2, that we have identified as our reportable segments. The unaudited consolidated financial statements include the accounts of Republic and its wholly owned and majority owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). We account for investments in entities in which we do not have a controlling financial interest under either the equity method or cost method of accounting, as appropriate. All material intercompany accounts and transactions have been eliminated in consolidation. We have prepared these unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP has been condensed or omitted. In the opinion of management, these financial statements include all adjustments that, unless otherwise disclosed, are of a normal recurring nature and necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of the results you can expect for a full year. You should read these financial statements in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K for the year ended December 31, 2015 and Form 8-K filed on June 3, 2016. For comparative purposes, certain prior year amounts have been reclassified to conform to the current year presentation. All dollar amounts in tabular presentations are in millions, except per share amounts and unless otherwise noted. Management’s Estimates and Assumptions In preparing our financial statements, we make numerous estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. We must make these estimates and assumptions because certain information we use is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. In preparing our financial statements, the more critical and subjective areas that deal with the greatest amount of uncertainty relate to our accounting for our long-lived assets, including recoverability, landfill development costs, and final capping, closure and post-closure costs; our valuation allowances for accounts receivable and deferred tax assets; our liabilities for potential litigation, claims and assessments; our liabilities for environmental remediation, multiemployer pension plans, employee benefit plans, deferred taxes, uncertain tax positions, and insurance reserves; and our estimates of the fair values of assets acquired and liabilities assumed in any acquisition. Each of these items is discussed in more detail in our description of our significant accounting policies in Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2015 and Form 8-K filed on June 3, 2016. Our actual results may differ significantly from our estimates. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) amended the Accounting Standards Codification and created Topic 606, Revenue from Contracts with Customers, to clarify the principles for recognizing revenue. In July 2015, the FASB voted to amend the guidance by approving a one-year deferral of the effective date and providing the option to early adopt the standard on the original effective date of 2017. Republic will adopt the standard beginning January 1, 2018. The new standard must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. We are currently assessing the method of adoption and the potential impact this guidance may have on our consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs, which simplifies the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. The standard is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. We adopted this standard on a retrospective basis in the first quarter of 2016, which resulted in a reduction of our debt liability and other assets in our consolidated balance sheets of $37.7 million and $41.3 million as of September 30, 2016 and December 31, 2015, respectively. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance requires lessees to recognize lease assets and liabilities for those leases classified as operating leases under previous U.S. GAAP. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. We are currently evaluating the timing of the adoption and the potential impact this guidance may have on our consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update 2016-09, Compensation - Stock Compensation (Topic 718), which simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact this guidance may have on our consolidated financial statements. |
Business Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions and Restructuring Charges | BUSINESS ACQUISITIONS AND RESTRUCTURING CHARGES Acquisitions We acquired various waste businesses during the nine months ended September 30, 2016 and 2015. The purchase price for these acquisitions and the allocations of the purchase price follow:
The purchase price allocations are preliminary and are based on information existing at the acquisition dates. Accordingly, the purchase price allocations are subject to change. Substantially all of the goodwill and intangible assets recorded for these acquisitions are deductible for tax purposes. These acquisitions are not material to the Company's results of operations, individually or in the aggregate. As a result, no pro forma financial information is provided. In 2015, we acquired all of the equity interests of Tervita, LLC (Tervita) in exchange for a cash payment of $476.6 million. Tervita provides waste services to a diverse customer base serving oil and natural gas producers and operates three types of waste management and disposal facilities: treatment, recovery and disposal facilities, engineered landfills and salt water disposal injection wells. We allocated $109.3 million of the purchase price to property and equipment, $85.5 million to landfill airspace, $7.2 million to intangible assets, and $21.0 million to net working capital. We also assumed $6.9 million of closure and post-closure obligations and $7.6 million of environmental remediation and other liabilities. Approximately $268 million of the remaining purchase price was allocated to goodwill. Restructuring Charges In January 2016, we realigned our field support functions by combining our three regions into two field groups, consolidating our areas and streamlining select operational support roles at our Phoenix headquarters. These changes included reducing administrative staffing levels, relocating office space and closing certain office locations. Additionally, in the second quarter, we began redesigning our accounts payable functions to streamline and consolidate our invoice processing and vendor support. The savings realized from these restructuring efforts will be reinvested in our customer-focused programs and initiatives, which include the consolidation of over 100 customer service locations into three Customer Resource Centers over the next two years. During the three and nine months ended September 30, 2016, we incurred $7.2 million and $33.5 million, respectively, of restructuring charges that consisted of severance and other employee termination benefits, employee relocation benefits, and the closure of offices with lease agreements with non-cancelable terms. During the three and nine months ended September 30, 2016, we paid $9.7 million and $24.2 million, respectively, related to these restructuring efforts. We expect to incur additional charges of approximately $20 million over the next two years related to our field realignment, the consolidation of our customer service locations, and the redesign of our accounts payable processes. Substantially all of these restructuring charges will be recorded in our corporate segment. |
Goodwill and Other Intangible Assets, Net |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET In January 2016, we realigned our field support functions by combining our three regions into two field groups, consolidating our area locations and streamlining select operational support roles at our Phoenix headquarters. Following our restructuring, our senior management now evaluates, oversees and manages the financial performance of our operations through two field groups, referred to as Group 1 and Group 2. During the first quarter of 2016, we determined that our 2016 reportable segments are Group 1 and Group 2. We also evaluated our reporting units and determined that our 2016 reporting units are our reportable segments. We allocated goodwill to the new reporting units using a relative fair value approach and determined that there were no indicators of goodwill impairment. Goodwill A summary of the activity and balances in goodwill accounts by reporting segment follows:
Adjustments to acquisitions during the nine months ended September 30, 2016 primarily related to working capital, and were recorded to goodwill in purchase accounting. Other Intangible Assets, Net Other intangible assets, net, include values assigned to customer relationships, franchise agreements, other municipal agreements, non-compete agreements and trade names, and are amortized over periods ranging from 1 to 20 years. A summary of the activity and balances by intangible asset type follows:
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Other Assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | OTHER ASSETS Prepaid Expenses and Other Current Assets A summary of prepaid expenses and other current assets as of September 30, 2016 and December 31, 2015 follows:
Other Assets A summary of other assets as of September 30, 2016 and December 31, 2015 follows:
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Other Liabilities |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | OTHER LIABILITIES Other Accrued Liabilities A summary of other accrued liabilities as of September 30, 2016 and December 31, 2015 follows:
Other Long-Term Liabilities A summary of other long-term liabilities as of September 30, 2016 and December 31, 2015 follows:
Insurance Reserves Our liabilities for unpaid and incurred but not reported claims as of September 30, 2016 and December 31, 2015 (which include claims for workers’ compensation, commercial general and auto liability, and employee-related health care benefits) were $418.6 million and $405.8 million, respectively, under our risk management program and are included in other accrued liabilities and insurance reserves, net of current portion, in our consolidated balance sheets. While the ultimate amount of claims incurred depends on future developments, we believe the recorded reserves are adequate to cover the future payment of claims; however, it is possible that these recorded reserves may not be adequate to cover the future payment of claims. Adjustments, if any, to estimates recorded resulting from ultimate claim payments will be reflected in our consolidated statements of income in the periods in which such adjustments are known. |
Landfill and Environmental Costs |
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Landfill and Environmental Costs | LANDFILL AND ENVIRONMENTAL COSTS As of September 30, 2016, we owned or operated 192 active landfills with total available disposal capacity of approximately 5.0 billion in-place cubic yards. We also have post-closure responsibility for 124 closed landfills. Accrued Landfill and Environmental Costs A summary of accrued landfill and environmental liabilities as of September 30, 2016 and December 31, 2015 follows:
Final Capping, Closure and Post-Closure Costs The following table summarizes the activity in our asset retirement obligation liabilities, which include liabilities for landfill final capping, closure and post-closure, for the nine months ended September 30, 2016 and 2015:
We review annually, in the fourth quarter, and update as necessary, our estimates of asset retirement obligation liabilities. However, if there are significant changes in the facts and circumstances related to a site during the year, we will update our assumptions prospectively in the period that we know all the relevant facts and circumstances and make adjustments as appropriate. The fair value of assets that are legally restricted for purposes of settling final capping, closure and post-closure liabilities was $27.8 million and $27.3 million as of September 30, 2016 and December 31, 2015, respectively, and is included in restricted cash and marketable securities in our consolidated balance sheets. Landfill Operating Expenses In the normal course of business, we incur various operating costs associated with environmental compliance. These costs include, among other things, leachate treatment and disposal, methane gas and groundwater monitoring, systems maintenance, interim cap maintenance, costs associated with the application of daily cover materials, and the legal and administrative costs of ongoing environmental compliance. These costs are expensed as cost of operations in the periods in which they are incurred. Environmental Remediation Liabilities We accrue for remediation costs when they become probable and can be reasonably estimated. There can sometimes be a range of reasonable estimates of the costs associated with remediation of a site. In these cases, we use the amount within the range that constitutes our best estimate. If no amount within the range appears to be a better estimate than any other, we use the amount that is at the low end of the range. It is reasonably possible that we will need to adjust the liabilities recorded for remediation to reflect the effects of new or additional information, to the extent such information impacts the costs, timing or duration of the required actions. If we used the reasonably possible high ends of our ranges, our aggregate potential remediation liability as of September 30, 2016 would be approximately $350 million higher than the amount recorded. Future changes in our estimates of the cost, timing or duration of the required actions could have a material adverse effect on our consolidated financial position, results of operations or cash flows. The following table summarizes the activity in our environmental remediation liabilities for the nine months ended September 30, 2016 and 2015:
Bridgeton Landfill. During the nine months ended September 30, 2016, we paid $17.9 million related to management and monitoring of the remediation area for our closed Bridgeton Landfill in Missouri. We continue to work with state and federal regulatory agencies on our remediation efforts. On April 28, 2016, Bridgeton Landfill, LLC and the United States Environmental Protection Agency entered into an Administrative Settlement Agreement and Order on Consent (the Order) addressing certain remedial actions in the north quarry of the Bridgeton Landfill, including a heat extraction barrier, an expanded landfill cover, and additional temperature monitoring probes. The Order formalizes certain of the remediation work to be performed at the site that already was contemplated in our remediation liability. From time to time, however, we may be required to modify our future operating timeline and procedures, which could result in changes to our expected remediation liability. As of September 30, 2016, the remediation liability recorded for this site is $199.6 million, of which approximately $7 million is expected to be paid during the remainder of 2016. We believe the remaining reasonably possible high end of our range would be approximately $164 million higher than the amount recorded as of September 30, 2016. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT The carrying value of our notes payable, capital leases and long-term debt as of September 30, 2016 and December 31, 2015 is listed in the following table, and is adjusted for debt issuance costs, the fair value of interest rate swaps, unamortized discounts and the unamortized portion of adjustments to fair value recorded in purchase accounting which are amortized to interest expense over the term of the applicable instrument using the effective interest method.
Loss on Extinguishment of Debt and Other Related Costs During the three months ended September 30, 2016, we incurred a loss on the early extinguishment of debt and other related costs. We paid a cash premium of $148.1 million, early tender consideration of $28.7 million and $1.6 million of legal and other fees. We also incurred a non-cash charge related to the proportional share of unamortized discounts and deferred issuance costs of $17.8 million. The unamortized proportional share of certain cash flow hedges reclassified to earnings as non-cash interest expense was $7.2 million. The following table summarizes the charge incurred during the three and nine months ended September 30, 2016:
Credit Facilities In May 2016, we entered into a $1.0 billion unsecured revolving credit facility (the Replacement Credit Facility), which replaced our $1.0 billion credit facility maturing in May 2017. The Replacement Credit Facility matures in May 2021 and includes a feature that allows us to increase availability, at our option, by an aggregate amount up to $500.0 million through increased commitments from existing lenders or the addition of new lenders. At our option, borrowings under the Replacement Credit Facility bear interest at a Base Rate, or a Eurodollar Rate, plus an applicable margin based on our Debt Ratings (all as defined in the agreements). Contemporaneous with the execution of the Replacement Credit Facility, we entered into Amendment No. 1 to our existing $1.25 billion unsecured credit facility (the Existing Credit Facility and, together with the Replacement Credit Facility, the Credit Facilities), to conform certain terms of the Existing Credit Facility with those of the Replacement Credit Facility. Amendment No. 1 does not extend the maturity date of the Existing Credit Facility, which matures in June 2019. The Existing Credit Facility also maintains the feature that allows us to increase availability, at our option, by an aggregate amount of up to $500.0 million through increased commitments from existing lenders or the addition of new lenders. Our Credit Facilities are subject to facility fees based on applicable rates defined in the agreements and the aggregate commitments, regardless of usage. Availability under our Credit Facilities totaled $1,513.5 million and $1,727.7 million as of September 30, 2016 and December 31, 2015, respectively, and can be used for working capital, capital expenditures, acquisitions, letters of credit and other general corporate purposes. The credit agreements require us to comply with financial and other covenants. We may pay dividends and repurchase common stock if we are in compliance with these covenants. As of September 30, 2016, we had $210.0 million of borrowings under our Credit Facilities and no borrowings as of December 31, 2015. We had $508.0 million and $503.3 million of letters of credit outstanding under our Credit Facilities as of September 30, 2016 and December 31, 2015, respectively. During the three months ended September 30, 2016, we amended our existing unsecured credit facility agreement (the Uncommitted Credit Facility), to increase the size to $135.0 million, with all other terms remaining unchanged. Our Uncommitted Credit Facility bears interest at LIBOR, plus an applicable margin and is subject to facility fees defined in the agreement, regardless of usage. We can use borrowings under the Uncommitted Credit Facility for working capital and other general corporate purposes. The agreements governing our Uncommitted Credit Facility require us to comply with covenants. The Uncommitted Credit Facility may be terminated by either party at any time. As of September 30, 2016 and December 31, 2015, we had $73.0 million and $19.0 million, respectively, of borrowings under our Uncommitted Credit Facility. Senior Notes and Debentures During the three months ended September 30, 2016, we priced cash tender offers to purchase up to $575.4 million combined aggregate principal amount of the 6.20% Notes due March 2040, 5.70% Notes due May 2041, 7.40% Debentures due September 2035 and 6.09% Notes due March 2035 (collectively "Existing Notes"), subject to the priority levels and the other terms and conditions set forth in the Offer to Purchase. During the three months ended September 30, 2016, we priced an offering of $500.0 million of 2.90% senior notes due 2026 (the 2.90% Notes). The sale of the 2.90% Notes closed on July 5, 2016. We used the net proceeds of the offering, together with borrowing under our credit facilities, to purchase $575.4 million of the combined aggregate principal amount of the Existing Notes tendered as well as premium due of $148.1 million and early tender consideration of $28.7 million. During 2015, we issued $500.0 million of 3.20% notes due 2025 (the 3.20% Notes). The 3.20% Notes are unsubordinated and unsecured obligations. We used the net proceeds from the 3.20% Notes to refinance debt incurred in connection with our acquisition of all of the equity interests of Tervita during 2015. Our senior notes and debentures are general unsecured obligations. Interest is payable semi-annually. The senior notes have a make-whole provision that is exercisable at any time prior to the respective maturity dates per the debt table above at a stated redemption price. Tax-Exempt Financings As of September 30, 2016, 90% of our tax-exempt financings are remarketed quarterly by remarketing agents to effectively maintain a variable yield. The holders of the bonds can put them back to the remarketing agents at the end of each interest period. To date, the remarketing agents have been able to remarket our variable rate unsecured tax-exempt bonds. As of September 30, 2016 and December 31, 2015, we had $1,072.6 million and $1,072.1 million, respectively, of fixed and variable rate tax-exempt financings outstanding with maturities ranging from 2019 to 2044. These bonds have been classified as long-term because of our ability and intent to refinance them using availability under our revolving Credit Facilities, if necessary. Capital Leases We had capital lease liabilities of $107.8 million and $111.5 million as of September 30, 2016 and December 31, 2015, respectively, with maturities ranging from 2016 to 2046. Interest Rate Swap and Lock Agreements Our ability to obtain financing through the capital markets is a key component of our financial strategy. Historically, we have managed risk associated with executing this strategy, particularly as it relates to fluctuations in interest rates, by using a combination of fixed and floating rate debt. From time to time, we have also entered into interest rate swap and lock agreements to manage risk associated with interest rates, either to effectively convert specific fixed rate debt to a floating rate (fair value hedges), or to lock interest rates in anticipation of future debt issuances (cash flow hedges). Fair Value Hedges During the second half of 2013, we entered into various interest rate swap agreements relative to our 4.750% fixed rate senior notes due in May 2023. The goal was to reduce overall borrowing costs and rebalance our debt portfolio's ratio of fixed to floating interest rates. As of September 30, 2016, these swap agreements had a total notional value of $300.0 million and mature in May 2023, which is identical to the maturity of the hedged senior notes. We pay interest at floating rates based on changes in LIBOR and receive interest at a fixed rate of 4.750%. These transactions were designated as fair value hedges because the swaps hedge against the changes in fair value of the fixed rate senior notes resulting from changes in interest rates. As of September 30, 2016 and December 31, 2015, the interest rate swap agreements are reflected at their fair value of $27.9 million and $16.5 million, respectively, and are included in other assets. To the extent they are effective, these interest rate swap agreements are included as an adjustment to long-term debt in our consolidated balance sheets. We recognized net interest income of $1.5 million and $4.9 million during the three and nine months ended September 30, 2016, respectively, and $1.9 million and $5.7 million during the three and nine months ended September 30, 2015, respectively, related to net swap settlements for these interest rate swap agreements, which is included as an offset to interest expense in our unaudited consolidated statements of income. For the three months ended September 30, 2016 and 2015, we recognized a gain (loss) of $4.5 million and $(9.2) million, respectively, on the change in fair value of the hedged senior notes attributable to changes in the benchmark interest rate, with an offsetting (loss) gain of $(3.8) million and $9.6 million, respectively, on the related interest rate swaps. For the nine months ended September 30, 2016 and 2015, we recognized a (loss) of $(9.6) million and $(6.3) million on the change in fair value of the hedged senior notes attributable to changes in the benchmark interest rate, respectively, with an offsetting gain of $11.4 million and $7.3 million on the related interest rate swaps, respectively. The difference of these fair value changes represents hedge ineffectiveness, which is recorded directly in earnings as other expense, net. Cash Flow Hedges During the nine months ended September 30, 2016, we entered into a number of interest rate lock agreements having an aggregate notional amount of $525.0 million with fixed interest rates ranging from 1.900% to 2.280% to manage exposure to fluctuations in interest rates in anticipation of a planned future issuance of senior notes. Upon the expected issuance of the senior notes, we will terminate the interest rate locks and settle with our counterparties. These transactions were accounted for as cash flow hedges. The fair value of our interest rate locks as of September 30, 2016 was determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy). The aggregate fair value of the outstanding interest rate locks as of September 30, 2016 was $20.3 million and was recorded in other long-term liabilities in our consolidated balance sheet. As of September 30, 2016, the effective portion of the interest rate locks recorded as a component of accumulated other comprehensive loss, net of tax, was $12.2 million. As of September 30, 2016 and December 31, 2015, the effective portion of our previously terminated interest rate locks, recorded as a component of accumulated other comprehensive loss, net of tax, was $13.8 million and $19.4 million, respectively. The effective portion of the interest rate locks is amortized as an adjustment to interest expense over the life of the issued debt using the effective interest method. We expect to amortize approximately $1.6 million of net expense, net of tax, over the next twelve months as a yield adjustment of our senior notes. The effective portion of the interest rate locks amortized as a net increase to interest expense was $7.8 million and $0.7 million during the three months ended September 30, 2016 and 2015, respectively, and $9.1 million and $2.0 million during the nine months ended September 30, 2016 and 2015, respectively. |
Income Taxes |
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Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective tax rate, exclusive of noncontrolling interests, for the three and nine months ended September 30, 2016 was 32.5% and 36.9%, respectively. Our effective tax rate, exclusive of noncontrolling interests, for the three and nine months ended September 30, 2015 was 38.7% and 38.1%, respectively. The effective tax rate for the three months ended September 30, 2016 was favorably affected by the realization of additional federal and state benefits as well as adjustments to deferred taxes due to the completion of our 2015 tax returns. The impact on our effective tax rate appears greater than past periods due to lower pre-tax earnings as a result of our debt refinancing in July 2016. For the nine months ended September 30, 2016, in addition to the item mentioned previously, our effective tax rate was favorably affected by the resolution of state and federal tax matters. The effective tax rate for the nine months ended September 30, 2015 was favorably affected by the resolution of a Puerto Rican tax matter and tax refunds received as the result of filing various state amended tax returns. Cash paid for income taxes was $145.7 million and $256.8 million for the nine months ended September 30, 2016 and 2015, respectively. The decrease in cash paid for income taxes is primarily due to the expected benefits to be realized from our debt refinancing in July 2016. We are subject to income tax in the United States and Puerto Rico, as well as in multiple state jurisdictions. Our compliance with income tax rules and regulations is periodically audited by tax authorities. These authorities may challenge the positions taken in our tax filings. We are currently under examination or administrative review by state and local taxing authorities for various tax years. We recognize interest and penalties as incurred within the provision for income taxes in the consolidated statements of income. As of September 30, 2016, we accrued a liability for penalties of $0.5 million and a liability for interest (including interest on penalties) of $11.3 million related to our uncertain tax positions. We believe that our recorded liabilities for uncertain tax positions are adequate. However, a significant assessment against us in excess of the liabilities recorded could have a material adverse effect on our consolidated financial position, results of operations or cash flows. During the next twelve months, it is reasonably possible that the amount of unrecognized tax benefits will increase or decrease. Gross unrecognized benefits we expect to settle in the next twelve months are in the range of zero to $10 million. We have deferred tax assets related to state net operating loss carryforwards. We provide a partial valuation allowance due to uncertainty surrounding the future utilization of these carryforwards in the taxing jurisdictions where the loss carryforwards exist. When determining the need for a valuation allowance, we consider all positive and negative evidence, including recent financial results, scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies. The weight given to the positive and negative evidence is commensurate with the extent such evidence can be objectively verified. We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. Substantially all of our valuation allowance is associated with state loss carryforwards. The realization of our deferred tax asset for state loss carryforwards ultimately depends upon the existence of sufficient taxable income in the appropriate state taxing jurisdictions in future periods. We continue to regularly monitor both positive and negative evidence in determining the ongoing need for a valuation allowance. As of September 30, 2016, the valuation allowance associated with our state loss carryforwards was approximately $60 million. |
Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | STOCK-BASED COMPENSATION Available Shares In March 2013, our board of directors approved the Republic Services, Inc. Amended and Restated 2007 Stock Incentive Plan (the Plan), and in May 2013 our shareholders ratified the Plan. We currently have approximately 14.9 million shares of common stock reserved for future grants under the Plan. Stock Options The following table summarizes stock option activity for the nine months ended September 30, 2016:
During the nine months ended September 30, 2016 and 2015, compensation expense for stock options was $0.4 million and $2.1 million, respectively. As of September 30, 2016, total unrecognized compensation expense related to outstanding stock options was $0.3 million, which will be recognized over a weighted average period of 1.0 year. The total fair value of stock options that vested during the nine months ended September 30, 2016 was $5.6 million. Restricted Stock Units The following table summarizes restricted stock unit (RSU) activity for the nine months ended September 30, 2016:
During the nine months ended September 30, 2016, we awarded our non-employee directors 49,566 RSUs, which vested immediately. During the nine months ended September 30, 2016, we awarded 538,369 RSUs to executives and employees that vest in four equal annual installments beginning on the anniversary date of the original grant or cliff vest after four years. In addition, 35,064 RSUs were earned as dividend equivalents. The RSUs do not carry any voting or dividend rights, except the right to receive additional RSUs in lieu of dividends. The fair value of RSUs is based on the closing market price on the date of the grant. The compensation expense related to RSUs is amortized ratably over the vesting period, or to the employee's retirement eligible date, if earlier. During the nine months ended September 30, 2016 and 2015, compensation expense related to RSUs totaled $13.5 million and $12.4 million, respectively. As of September 30, 2016, total unrecognized compensation expense related to outstanding RSUs was $36.2 million, which will be recognized over a weighted average period of 2.8 years. Performance Shares During the nine months ended September 30, 2016, we awarded 168,786 performance shares (PSUs) to our named executive officers. These awards are performance-based as the number of shares ultimately earned depends on performance against pre-determined targets for return on invested capital (ROIC), cash flow value creation (CFVC), and total shareholder return relative to the S&P 500 index (RTSR). The PSUs are payable 50% in shares of common stock and 50% in cash after the end of a three-year performance period, when our financial performance for the entire performance period is reported, typically in February of the succeeding year. At the end of the performance period, the number of PSUs awarded can range from 0% to 150% of the targeted amount, depending on the performance against the pre-determined targets. During the nine months ended September 30, 2016, we awarded 217,790 PSUs to our employees other than our named executive officers. The PSUs are payable 100% in shares of common stock after the end of a three-year performance period, when the Company's financial performance for the entire performance period is reported, typically in February of the succeeding year. At the end of the performance period, the number of PSUs awarded can range from 0% to 150% of the targeted amount, depending on the performance against the pre-determined targets. The following table summarizes PSU activity for the nine months ended September 30, 2016:
During the nine months ended September 30, 2016, 7,251 PSUs accumulated as dividend equivalents. The PSUs do not carry any voting or dividend rights, except the right to accumulate additional PSUs in lieu of dividends. For the stock-settled portion of the awards that vest based on future ROIC and CFVC performance, compensation expense is measured using the fair value of our common stock at the grant date. For the cash-settled portion of the awards that vest based on future ROIC and CFVC performance, compensation expense is recorded based on the fair value of our common stock at the end of each reporting period. Compensation expense is recognized ratably over the performance period based on our estimated achievement of the established performance criteria. Compensation expense is only recognized for the portion of the award that we expect to vest, which we estimate based on an assessment of the probability that the performance criteria will be achieved. For the stock-settled portion of the awards that vest based on RTSR, the grant date fair value is based on a Monte Carlo valuation and compensation expense is recognized on a straight-line basis over the vesting period. For the cash-settled portion of the awards that vest based on RTSR, compensation expense also incorporates the fair value of our PSUs at the end of each reporting period. Compensation expense is recognized for the RTSR portion of the award whether or not the market conditions are achieved. During the nine months ended September 30, 2016 and 2015, compensation expense related to PSUs totaled $5.9 million and $1.2 million, respectively. As of September 30, 2016, total unrecognized compensation expense related to outstanding PSUs was $15.5 million which we expect to be recognized over a weighted average period of 2.0 years. |
Stock Repurchases, Dividends and Earnings per Share |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Repurchases, Dividends and Earnings per Share | STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE Stock Repurchases Stock repurchase activity during the nine months ended September 30, 2016 and 2015 follows (in millions except per share amounts):
As of September 30, 2016 and 2015, 0.2 million and 0.1 million repurchased shares were pending settlement and $9.1 million and $5.3 million were unpaid and included within other accrued liabilities, respectively. Dividends In July 2016, our board of directors approved a quarterly dividend of $0.32 per share. Cash dividends declared were $315.2 million for the nine months ended September 30, 2016. As of September 30, 2016, we recorded a quarterly dividend payable of $109.0 million to shareholders of record at the close of business on October 3, 2016. Earnings per Share Basic earnings per share is computed by dividing net income attributable to Republic Services, Inc. by the weighted average number of common shares (including vested but unissued RSUs) outstanding during the period. Diluted earnings per share is based on the combined weighted average number of common shares and common share equivalents outstanding, which include, where appropriate, the assumed exercise of employee stock options, unvested RSUs, and unvested PSUs at the expected attainment levels. We use the treasury stock method in computing diluted earnings per share. Earnings per share for the three and nine months ended September 30, 2016 and 2015 are calculated as follows (in thousands, except per share amounts):
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Changes in Accumulated Other Comprehensive Loss (Income) by Component |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Loss (Income) by Component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (INCOME) BY COMPONENT A summary of changes in accumulated other comprehensive loss (income), net of tax, by component, for the nine months ended September 30, 2016 follows:
A summary of reclassifications out of accumulated other comprehensive loss (income) for the three and nine months ended September 30, 2016 and 2015 follows:
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Financial Instruments |
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Financial Instruments | FINANCIAL INSTRUMENTS Fuel Hedges We have entered into multiple swap agreements designated as cash flow hedges to mitigate some of our exposure related to changes in diesel fuel prices. These swaps qualified for, and were designated as, effective hedges of changes in the prices of forecasted diesel fuel purchases (fuel hedges). The following table summarizes our outstanding fuel hedges as of September 30, 2016:
If the national U.S. on-highway average price for a gallon of diesel fuel as published by the Department of Energy exceeds the contract price per gallon, we receive the difference between the average price and the contract price (multiplied by the notional gallons) from the counterparty. If the average price is less than the contract price per gallon, we pay the difference to the counterparty. The fair values of our fuel hedges are determined using standard option valuation models with assumptions about commodity prices based on those observed in underlying markets (Level 2 in the fair value hierarchy). The aggregate fair values of our outstanding fuel hedges as of September 30, 2016 and December 31, 2015 were current liabilities of $12.8 million and $37.8 million, respectively, and have been recorded in other accrued liabilities in our consolidated balance sheets. The ineffective portions of the changes in fair values resulted in gains of $0.1 million and $0.6 million for the three and nine months ended September 30, 2016, respectively, and a loss of $0.2 million and $0.3 million for the three and nine months ended September 30, 2015, respectively, and have been recorded in other expense, net in our consolidated statements of income. Total gain (loss) recognized in other comprehensive loss, net of tax, for fuel hedges (the effective portion) was $4.0 million and $(5.3) million for the three months ended September 30, 2016 and 2015, respectively, and $14.7 million and $0.5 million for the nine months ended September 30, 2016 and 2015. We classify cash inflows and outflows from our fuel hedges within operating activities in the unaudited consolidated statements of cash flows. Recycling Commodity Hedges Revenue from the sale of recycled commodities is primarily from sales of old corrugated cardboard and old newspaper. From time to time we use derivative instruments such as swaps and costless collars designated as cash flow hedges to manage our exposure to changes in prices of these commodities. During the three months ended September 30, 2016, we entered into multiple agreements related to the forecasted OCC sales. The agreements qualified for, and were designated as, effective hedges of changes in the prices of certain forecasted recycling commodity sales (commodity hedges). We entered into costless collar agreements on forecasted sales of OCC. The agreements involve combining a purchased put option giving us the right to sell OCC at an established floor strike price with a written call option obligating us to deliver OCC at an established cap strike price. The puts and calls have the same settlement dates, are net settled in cash on such dates and have the same terms to expiration. The contemporaneous combination of options resulted in no net premium for us and represents costless collars. Under these agreements, we will make or receive no payments as long as the settlement price is between the floor price and cap price; however, if the settlement price is above the cap, we will pay the counterparty an amount equal to the excess of the settlement price over the cap times the monthly volumes hedged. If the settlement price is below the floor, the counterparty will pay us the deficit of the settlement price below the floor times the monthly volumes hedged. The objective of these agreements is to reduce variability of cash flows for forecasted sales of OCC between two designated strike prices. As of September 30, 2016, we had outstanding costless collar hedges for OCC totaling 240,000 tons with a weighted average floor strike price of $81.50 per ton and a weighted average cap strike price of $120.00 per ton, all of which will be settled in 2018. Costless collar hedges are recorded in our consolidated balance sheets at fair value. Fair values of costless collars are determined using standard option valuation models with assumptions about commodity prices based upon forward commodity price curves in underlying markets (Level 2 in the fair value hierarchy). We had no outstanding recycling commodity hedges as of December 31, 2015. The aggregated fair values of the outstanding recycling commodity hedges as of September 30, 2016 were current liabilities of $0.7 million, and have been recorded in other accrued liabilities in our consolidated balance sheets. No amounts were recognized in other (expense) income, net in our consolidated statements of income for the ineffectiveness portion of the changes in fair values during each of the three and nine months ended September 30, 2016. Total losses recognized in other comprehensive income for recycling commodity hedges (the effective portion) were $0.4 million, net of tax, for the three and nine months ended September 30, 2016. Fair Value Measurements In measuring the fair values of assets and liabilities, we use valuation techniques that maximize the use of observable inputs (Level 1) and minimize the use of unobservable inputs (Level 3). We also use market data or assumptions that we believe market participants would use in pricing an asset or liability, including assumptions about risk when appropriate. The carrying value for certain of our financial instruments, including cash, accounts receivable, accounts payable and certain other accrued liabilities, approximates fair value because of their short-term nature. As of September 30, 2016 and December 31, 2015, our assets and liabilities that are measured at fair value on a recurring basis include the following:
Total Debt As of September 30, 2016, the carrying value of our total debt was $7.7 billion and the fair value of our total debt was $8.6 billion. As of December 31, 2015, the carrying value of our total debt was $7.5 billion and the fair value of our total debt was $8.2 billion. The estimated fair value of our fixed rate senior notes and debentures is based on quoted market prices. The fair value of our remaining notes payable, tax-exempt financings and borrowings under our credit facilities approximates the carrying value because the interest rates are variable. The fair value estimates are based on Level 2 inputs of the fair value hierarchy as of September 30, 2016 and December 31, 2015, respectively. See Note 7, Debt, for further information related to our debt. Contingent Consideration In April 2015, we entered into a waste management contract with Sonoma County, California to operate the county's waste management facilities. As of September 30, 2016, the contingent consideration of $69.1 million represents the fair value of amounts payable to Sonoma County based on the achievement of future annual tonnage targets through the expected remaining capacity of the landfill, which we estimate to be approximately 30 years. The potential undiscounted amount of all future contingent payments that we could be required to make under the waste management contract is estimated to be between approximately $89 million and $178 million. The fair value of the contingent consideration was determined using probability assessments of the expected future payments over the remaining useful life of the landfill, and applying a discount rate of 4.0%. The future payments are based on significant inputs that are not observable in the market. Key assumptions include annual volume of tons disposed at the landfill, the price paid per ton, and the discount rate that represent the best estimates of management, which are subject to remeasurement at each reporting date. The contingent consideration liability is classified within Level 3 of the fair value hierarchy. |
Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | SEGMENT REPORTING In January 2016, we realigned our field support functions by combining our three regions into two field groups, consolidating our areas and streamlining select operational support roles at our Phoenix headquarters. Following our restructuring, our senior management now evaluates, oversees and manages the financial performance of our operations through two field groups, referred to as Group 1 and Group 2. Group 1 primarily consists of geographic areas located in the western and mid-western United States, and Group 2 primarily consists of geographic areas located in Texas, the southeastern United States and the eastern seaboard of the United States. We manage and evaluate our operations through the two field groups, Group 1 and Group 2. These two groups are presented below as our reportable segments, which provide integrated waste management services consisting of non-hazardous solid waste collection, transfer, recycling, disposal and energy services. Summarized financial information concerning our reportable segments for the three and nine months ended September 30, 2016 and 2015 follows:
Intercompany revenue reflects transactions within and between segments that generally are made on a basis intended to reflect the market value of such services. Capital expenditures for corporate entities primarily include vehicle inventory acquired but not yet assigned to operating locations and facilities. Corporate functions include legal, tax, treasury, information technology, risk management, human resources, closed landfills and other administrative functions. The following table shows our total reported revenue by service line for the three and nine months ended September 30, 2016 and 2015 (in millions of dollars and as a percentage of revenue):
Other non-core revenue consists primarily of revenue from National Accounts, which represents the portion of revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated waste handling services are subcontracted to local operators. Consequently, substantially all of this revenue is offset with related subcontract costs, which are recorded in cost of operations. |
Commitments and Contingencies |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings We are subject to extensive and evolving laws and regulations and have implemented safeguards to respond to regulatory requirements. In the normal course of our business, we become involved in legal proceedings. Some may result in fines, penalties or judgments against us, which may impact earnings and cash flows for a particular period. Although we cannot predict the ultimate outcome of any legal matter with certainty, we do not believe the outcome of any of our pending legal proceedings will have a material adverse impact on our consolidated financial position, results of operations or cash flows. As used herein, the term legal proceedings refers to litigation and similar claims against us and our subsidiaries, excluding: (1) ordinary course accidents, general commercial liability and workers' compensation claims, which are covered by insurance programs, subject to customary deductibles, and which, together with insured employee health care costs, are discussed in Note 5, Other Liabilities; and (2) environmental remediation liabilities, which are discussed in Note 6, Landfill and Environmental Costs. We accrue for legal proceedings when losses become probable and reasonably estimable. We have recorded an aggregate accrual of approximately $55 million relating to our outstanding legal proceedings as of September 30, 2016. As of the end of each applicable reporting period, we review each of our legal proceedings and, where it is probable that a liability has been incurred, we accrue for all probable and reasonably estimable losses. Where we can reasonably estimate a range of losses we may incur regarding such a matter, we record an accrual for the amount within the range that constitutes our best estimate. If we can reasonably estimate a range but no amount within the range appears to be a better estimate than any other, we use the amount that is the low end of such range. If we had used the high ends of such ranges, our aggregate potential liability would be approximately $51 million higher than the amount recorded as of September 30, 2016. Multiemployer Pension Plans We contribute to 26 multiemployer pension plans under collective bargaining agreements covering union-represented employees. These plans generally provide retirement benefits to participants based on their service to contributing employers. We do not administer these plans. Under current law regarding multiemployer pension plans, a plan’s termination, and any termination of an employer’s obligation to make contributions, including our voluntary withdrawal (which we consider from time to time) or the mass withdrawal of all contributing employers from any under-funded multiemployer pension plan (each, a Withdrawal Event) would require us to make payments to the plan for our proportionate share of the plan’s unfunded vested liabilities. During the course of operating our business, we incur Withdrawal Events regarding certain of our multiemployer pension plans. We accrue for such events when losses become probable and reasonably estimable. Restricted Cash and Marketable Securities Our restricted cash and marketable securities include, among other things, restricted cash and marketable securities held for capital expenditures under certain debt facilities, restricted cash pursuant to a holdback arrangement, restricted cash and marketable securities pledged to regulatory agencies and governmental entities as financial guarantees of our performance related to our final capping, closure and post-closure obligations at our landfills, and restricted cash and marketable securities related to our insurance obligations. The following table summarizes our restricted cash and marketable securities as of September 30, 2016 and December 31, 2015:
Off-Balance Sheet Arrangements We have no off-balance sheet debt or similar obligations, other than operating leases and financial assurances, which are not classified as debt. We have no transactions or obligations with related parties that are not disclosed, consolidated into or reflected in our reported financial position or results of operations. We have not guaranteed any third-party debt. |
Basis of Presentation (Policies) |
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Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Management's Estimates and Assumptions | Management’s Estimates and Assumptions In preparing our financial statements, we make numerous estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. We must make these estimates and assumptions because certain information we use is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. In preparing our financial statements, the more critical and subjective areas that deal with the greatest amount of uncertainty relate to our accounting for our long-lived assets, including recoverability, landfill development costs, and final capping, closure and post-closure costs; our valuation allowances for accounts receivable and deferred tax assets; our liabilities for potential litigation, claims and assessments; our liabilities for environmental remediation, multiemployer pension plans, employee benefit plans, deferred taxes, uncertain tax positions, and insurance reserves; and our estimates of the fair values of assets acquired and liabilities assumed in any acquisition. Each of these items is discussed in more detail in our description of our significant accounting policies in Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2015 and Form 8-K filed on June 3, 2016. Our actual results may differ significantly from our estimates. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) amended the Accounting Standards Codification and created Topic 606, Revenue from Contracts with Customers, to clarify the principles for recognizing revenue. In July 2015, the FASB voted to amend the guidance by approving a one-year deferral of the effective date and providing the option to early adopt the standard on the original effective date of 2017. Republic will adopt the standard beginning January 1, 2018. The new standard must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. We are currently assessing the method of adoption and the potential impact this guidance may have on our consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs, which simplifies the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. The standard is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. We adopted this standard on a retrospective basis in the first quarter of 2016, which resulted in a reduction of our debt liability and other assets in our consolidated balance sheets of $37.7 million and $41.3 million as of September 30, 2016 and December 31, 2015, respectively. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance requires lessees to recognize lease assets and liabilities for those leases classified as operating leases under previous U.S. GAAP. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. We are currently evaluating the timing of the adoption and the potential impact this guidance may have on our consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update 2016-09, Compensation - Stock Compensation (Topic 718), which simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. |
Business Acquisitions and Restructuring Charges (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate purchase price and allocation of purchase price | The purchase price for these acquisitions and the allocations of the purchase price follow:
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Goodwill and Other Intangible Assets, Net (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the activity and balances in goodwill accounts by reporting segment | A summary of the activity and balances in goodwill accounts by reporting segment follows:
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Summary of the activity and balances by intangible asset type | A summary of the activity and balances by intangible asset type follows:
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Other Assets (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of prepaid expenses and other current assets | A summary of prepaid expenses and other current assets as of September 30, 2016 and December 31, 2015 follows:
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Summary of other assets | A summary of other assets as of September 30, 2016 and December 31, 2015 follows:
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Other Liabilities (Tables) |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of other accrued liabilities | A summary of other accrued liabilities as of September 30, 2016 and December 31, 2015 follows:
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Summary of other long-term liabilities | A summary of other long-term liabilities as of September 30, 2016 and December 31, 2015 follows:
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Landfill and Environmental Costs (Tables) |
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Environmental Remediation Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of accrued landfill and environmental liabilities | A summary of accrued landfill and environmental liabilities as of September 30, 2016 and December 31, 2015 follows:
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Summary of activity in asset retirement obligation liabilities, which include liabilities for landfill final capping, closure and post-closure | The following table summarizes the activity in our asset retirement obligation liabilities, which include liabilities for landfill final capping, closure and post-closure, for the nine months ended September 30, 2016 and 2015:
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Summary of activity in environmental remediation liabilities | The following table summarizes the activity in our environmental remediation liabilities for the nine months ended September 30, 2016 and 2015:
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying value of notes payable, capital leases and long-term debt | The carrying value of our notes payable, capital leases and long-term debt as of September 30, 2016 and December 31, 2015 is listed in the following table, and is adjusted for debt issuance costs, the fair value of interest rate swaps, unamortized discounts and the unamortized portion of adjustments to fair value recorded in purchase accounting which are amortized to interest expense over the term of the applicable instrument using the effective interest method.
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Schedule of extinguishment of debt | The following table summarizes the charge incurred during the three and nine months ended September 30, 2016:
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Stock-Based Compensation (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of stock option activity | The following table summarizes stock option activity for the nine months ended September 30, 2016:
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Summary of restricted stock unit activity | The following table summarizes restricted stock unit (RSU) activity for the nine months ended September 30, 2016:
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Summary of performance shares activity | The following table summarizes PSU activity for the nine months ended September 30, 2016:
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Stock Repurchases, Dividends and Earnings per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock repurchase activity | Stock repurchase activity during the nine months ended September 30, 2016 and 2015 follows (in millions except per share amounts):
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Earnings per share | Earnings per share for the three and nine months ended September 30, 2016 and 2015 are calculated as follows (in thousands, except per share amounts):
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Changes in Accumulated Other Comprehensive Loss (Income) by Component (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of changes in accumulated other comprehensive loss (income) by component | A summary of changes in accumulated other comprehensive loss (income), net of tax, by component, for the nine months ended September 30, 2016 follows:
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Schedule of reclassifications out of accumulated other comprehensive loss (income) | A summary of reclassifications out of accumulated other comprehensive loss (income) for the three and nine months ended September 30, 2016 and 2015 follows:
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Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of outstanding fuel hedges | The following table summarizes our outstanding fuel hedges as of September 30, 2016:
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Assets and liabilities measured at fair value on a recurring basis | As of September 30, 2016 and December 31, 2015, our assets and liabilities that are measured at fair value on a recurring basis include the following:
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Segment Reporting (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized financial information concerning reportable segments | Summarized financial information concerning our reportable segments for the three and nine months ended September 30, 2016 and 2015 follows:
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Revenue by service line | The following table shows our total reported revenue by service line for the three and nine months ended September 30, 2016 and 2015 (in millions of dollars and as a percentage of revenue):
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restricted cash and marketable securities | The following table summarizes our restricted cash and marketable securities as of September 30, 2016 and December 31, 2015:
|
Basis of Presentation (Details) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2016
USD ($)
Segment
|
Dec. 31, 2015
USD ($)
region
|
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of reportable segments/regions | 2 | 3 |
Accounting Standards Update 2015-03 | Long-term Debt | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reduction of debt liability and other assets | $ 37.7 | $ 41.3 |
Accounting Standards Update 2015-03 | Other Assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reduction of debt liability and other assets | $ (37.7) | $ (41.3) |
Business Acquisitions and Restructuring Charges - Acquisitions Narrative (Details) $ in Millions |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
facility
|
|
Business Acquisition [Line Items] | |||
Cash used in acquisitions, net of cash acquired | $ 30.7 | $ 535.9 | |
Goodwill | 11,163.1 | $ 11,145.5 | |
Tervita | |||
Business Acquisition [Line Items] | |||
Cash used in acquisitions, net of cash acquired | $ 476.6 | ||
Number of types of waste management and disposal facilities | facility | 3 | ||
Property and equipment | 109.3 | ||
Landfill airspace | 85.5 | ||
Other intangible assets | 7.2 | ||
Net working capital | 21.0 | ||
Closure and post-closure liabilities | 6.9 | ||
Environmental remediation liabilities | 7.6 | ||
Goodwill | $ 268.0 |
Business Acquisitions and Restructuring Charges - Restructuring Charges (Details) $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|---|
Jan. 31, 2016
location
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
Segment
|
Sep. 30, 2015
USD ($)
|
Dec. 31, 2015
region
location
|
|
Restructuring Cost and Reserve [Line Items] | ||||||
Number of reportable segments/regions | 2 | 3 | ||||
Restructuring charges | $ 7.2 | $ 0.0 | $ 33.5 | $ 0.0 | ||
Restructuring expenditures | 9.7 | 24.2 | $ 0.0 | |||
Consolidation of Customer Service Locations | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of Customer Resource Centers after restructuring (in locations) | location | 3 | |||||
Number of years to complete restructuring | 2 years | |||||
Field Realignment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected charges to be incurred related to restructuring | $ 20.0 | $ 20.0 | ||||
Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of customer service locations to be consolidated (more than, in locations) | location | 100 |
Goodwill and Other Intangible Assets, Net - Narrative (Details) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2016
Segment
|
Dec. 31, 2015
region
|
|
Finite-Lived Intangible Assets [Line Items] | ||
Number of reportable segments/regions | 2 | 3 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period for other intangible assets | 1 year | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period for other intangible assets | 20 years |
Goodwill and Other Intangible Assets, Net - Goodwill (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Goodwill [Roll forward] | |
Beginning balance | $ 11,145.5 |
Acquisitions | 17.2 |
Adjustments to Acquisitions | 0.4 |
Ending balance | 11,163.1 |
Group 1 | |
Goodwill [Roll forward] | |
Beginning balance | 5,248.1 |
Acquisitions | 8.9 |
Adjustments to Acquisitions | 0.0 |
Ending balance | 5,257.0 |
Group 2 | |
Goodwill [Roll forward] | |
Beginning balance | 5,897.4 |
Acquisitions | 8.3 |
Adjustments to Acquisitions | 0.4 |
Ending balance | $ 5,906.1 |
Other Assets - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Prepaid Expenses and Other Current Assets | ||
Inventories | $ 43.7 | $ 38.8 |
Prepaid expenses | 86.3 | 66.1 |
Other non-trade receivables | 35.2 | 34.6 |
Reinsurance receivable | 13.1 | 12.5 |
Income tax receivable | 44.8 | 78.5 |
Other current assets | 6.8 | 4.5 |
Total | $ 229.9 | $ 235.0 |
Other Assets - Other Assets (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Other Assets | ||
Deferred compensation plan | $ 93.8 | $ 90.5 |
Amounts recoverable for capping, closure and post-closure obligations | 27.8 | 25.9 |
Reinsurance receivable | 61.4 | 44.0 |
Interest rate swaps | 27.9 | 16.5 |
Other | 83.1 | 83.7 |
Total | $ 294.0 | $ 260.6 |
Other Liabilities - Summary (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Other Accrued Liabilities | ||
Accrued payroll and benefits | $ 169.3 | $ 187.8 |
Accrued fees and taxes | 134.2 | 126.5 |
Insurance reserves, current portion | 138.5 | 127.7 |
Ceded insurance reserves, current portion | 13.1 | 12.5 |
Accrued dividends | 109.0 | 103.7 |
Current tax liabilities | 2.1 | 0.5 |
Fuel hedge fair value and settlements payable | 16.1 | 41.0 |
Accrued professional fees and legal settlement reserves | 32.8 | 44.2 |
Other | 89.1 | 72.7 |
Total | 704.2 | 716.6 |
Other Long-Term Liabilities | ||
Deferred compensation plan | 86.4 | 83.3 |
Pension and other post-retirement liabilities | 11.3 | 12.1 |
Legal settlement reserves | 24.5 | 24.7 |
Ceded insurance reserves | 61.4 | 44.0 |
Withdrawal liability - multiemployer pension funds | 11.7 | 6.1 |
Contingent consideration and acquisition holdbacks | 66.3 | 78.0 |
Interest rate locks liability | 20.3 | 0.0 |
Other | 56.0 | 61.1 |
Total | $ 337.9 | $ 309.3 |
Other Liabilities - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Liabilities for unpaid and incurred but not reported claims | $ 418.6 | $ 405.8 |
Landfill and Environmental Costs - Accrued Landfill and Environmental Costs (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Environmental Remediation Obligations [Abstract] | ||||
Landfill final capping, closure and post-closure liabilities | $ 1,211.9 | $ 1,181.6 | $ 1,188.5 | $ 1,144.3 |
Environmental remediation liabilities | 615.1 | 646.1 | $ 667.6 | $ 697.5 |
Total accrued landfill and environmental costs | 1,827.0 | 1,827.7 | ||
Less: current portion | (177.0) | (149.8) | ||
Long-term portion | $ 1,650.0 | $ 1,677.9 |
Landfill and Environmental Costs - Final Capping, Closure and Post-Closure Costs (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Activity in asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure | ||||
Asset retirement obligation liabilities, beginning of year | $ 1,181.6 | $ 1,144.3 | ||
Non-cash additions | 30.4 | 29.9 | ||
Acquisitions and other adjustments | 0.5 | 11.4 | ||
Asset retirement obligation adjustments | (3.2) | (5.9) | ||
Payments | (56.7) | (50.4) | ||
Accretion expense | $ 19.7 | $ 19.7 | 59.3 | 59.2 |
Asset retirement obligation liabilities, end of period | 1,211.9 | 1,188.5 | 1,211.9 | 1,188.5 |
Less: current portion | (94.3) | (103.1) | (94.3) | (103.1) |
Long-term portion | $ 1,117.6 | $ 1,085.4 | $ 1,117.6 | $ 1,085.4 |
Landfill and Environmental Costs - Environmental Remediation Liability (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Activity in environmental remediation liabilities | ||
Environmental remediation liabilities, beginning of year | $ 646.1 | $ 697.5 |
Net additions charged to expense | 0.3 | (1.3) |
Payments | (50.7) | (50.1) |
Accretion expense (non-cash interest expense) | 17.6 | 18.7 |
Acquisitions and other adjustments | 1.8 | 2.8 |
Environmental remediation liabilities, end of period | 615.1 | 667.6 |
Less: current portion | (82.7) | (76.1) |
Long-term portion | $ 532.4 | $ 591.5 |
Income Taxes (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 32.50% | 38.70% | 36.90% | 38.10% |
Cash paid for income taxes | $ 145,700,000 | $ 256,800,000 | ||
Accrued liability for penalties | $ 500,000 | 500,000 | ||
Accrued liability for interest related to uncertain tax positions and penalties | 11,300,000 | 11,300,000 | ||
Unrecognized tax benefits settlements with taxing authorities, minimum | 0 | |||
Unrecognized tax benefits settlements with taxing authorities, maximum | 10,000,000 | |||
Valuation allowance, state loss carryforwards | $ 60,000,000 | $ 60,000,000 |
Stock-Based Compensation - Performance Shares Activity (Details) - Performance Shares |
9 Months Ended |
---|---|
Sep. 30, 2016
$ / shares
shares
| |
Number of PSUs | |
Outstanding beginning balance (in shares) | shares | 143,400 |
Granted (in shares) | shares | 393,800 |
Vested and issued (in shares) | shares | 0 |
Forfeited (in shares) | shares | (38,900) |
Outstanding ending balance (in shares) | shares | 498,300 |
Weighted Average Grant Date Fair Value per Share | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 38.69 |
Granted (in dollars per share) | $ / shares | 46.22 |
Vested and Issued (in dollars per share) | $ / shares | 0.00 |
Forfeited (in dollars per share) | $ / shares | 43.50 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 44.40 |
Stock Repurchases, Dividends and Earnings per Share - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Jul. 31, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Equity [Abstract] | ||||||
Stock repurchased and pending settlement (in shares) | 0.2 | 0.1 | 0.2 | 0.1 | ||
Stock repurchased and pending settlement, liability | $ 9.1 | $ 5.3 | $ 9.1 | $ 5.3 | ||
Quarterly dividend declared (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.3 | $ 0.92 | $ 0.86 | |
Cash dividends declared | $ 315.2 | |||||
Quarterly dividend payable | $ 109.0 | $ 109.0 | $ 103.7 |
Stock Repurchases, Dividends and Earnings per Share - Share Repurchase Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Equity [Abstract] | ||||
Number of shares repurchased (in shares) | 2.2 | 2.3 | 6.5 | 7.3 |
Amount paid | $ 110.5 | $ 93.8 | $ 306.6 | $ 293.3 |
Weighted average cost per share (in dollars per share) | $ 50.75 | $ 40.89 | $ 47.83 | $ 40.66 |
Financial Instruments - Outstanding Fuel Hedges (Details) |
Sep. 30, 2016
gal
$ / gal
|
---|---|
Fuel Hedges Remaining 2016 | |
Derivative [Line Items] | |
Gallons hedged (in gallons per year) | gal | 6,750,000 |
Weighted Average Contract Price per Gallon (in dollars per gallon) | $ / gal | 3.57 |
Fuel Hedges Remaining 2017 | |
Derivative [Line Items] | |
Gallons hedged (in gallons per year) | gal | 12,000,000 |
Weighted Average Contract Price per Gallon (in dollars per gallon) | $ / gal | 2.92 |
Fuel Hedges Remaining 2018 | |
Derivative [Line Items] | |
Gallons hedged (in gallons per year) | gal | 3,000,000 |
Weighted Average Contract Price per Gallon (in dollars per gallon) | $ / gal | 2.61 |
Segment Reporting - Narrative (Details) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2016
Segment
|
Dec. 31, 2015
region
|
|
Segment Reporting [Abstract] | ||
Number of reportable segments/regions | 2 | 3 |
Segment Reporting - Financial Information by Regional Segment (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Segment Reporting Information [Line Items] | |||||
Gross Revenue | $ 2,917.6 | $ 2,833.9 | $ 8,487.1 | $ 8,244.0 | |
Intercompany Revenue | (508.3) | (489.9) | (1,478.6) | (1,419.2) | |
Total revenue | 2,409.3 | 2,344.0 | 7,008.5 | 6,824.8 | |
Depreciation, Amortization, Depletion and Accretion | 272.1 | 266.8 | 805.0 | 785.5 | |
Operating Income (Loss) | 417.9 | 442.9 | 1,145.6 | 1,204.9 | |
Capital Expenditures | 226.7 | 232.8 | 738.7 | 732.0 | |
Total Assets | 20,661.7 | 20,791.8 | 20,661.7 | 20,791.8 | $ 20,535.9 |
Group 1 | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 1,347.9 | 1,295.8 | 3,907.9 | 3,764.6 | |
Intercompany Revenue | (269.3) | (259.5) | (778.7) | (753.4) | |
Total revenue | 1,078.6 | 1,036.3 | 3,129.2 | 3,011.2 | |
Depreciation, Amortization, Depletion and Accretion | 105.9 | 101.2 | 313.0 | 295.6 | |
Operating Income (Loss) | 235.1 | 220.8 | 670.2 | 642.9 | |
Capital Expenditures | 119.3 | 125.0 | 337.8 | 318.7 | |
Total Assets | 9,199.3 | 9,341.5 | 9,199.3 | 9,341.5 | |
Group 2 | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 1,516.5 | 1,492.6 | 4,433.4 | 4,347.6 | |
Intercompany Revenue | (235.5) | (227.0) | (689.8) | (655.9) | |
Total revenue | 1,281.0 | 1,265.6 | 3,743.6 | 3,691.7 | |
Depreciation, Amortization, Depletion and Accretion | 136.2 | 139.1 | 405.3 | 408.5 | |
Operating Income (Loss) | 261.8 | 239.0 | 748.4 | 717.4 | |
Capital Expenditures | 96.4 | 89.2 | 259.1 | 266.7 | |
Total Assets | 9,908.9 | 9,929.2 | 9,908.9 | 9,929.2 | |
Corporate Entities | Corporate Entities | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 53.2 | 45.5 | 145.8 | 131.8 | |
Intercompany Revenue | (3.5) | (3.4) | (10.1) | (9.9) | |
Total revenue | 49.7 | 42.1 | 135.7 | 121.9 | |
Depreciation, Amortization, Depletion and Accretion | 30.0 | 26.5 | 86.7 | 81.4 | |
Operating Income (Loss) | (79.0) | (16.9) | (273.0) | (155.4) | |
Capital Expenditures | 11.0 | 18.6 | 141.8 | 146.6 | |
Total Assets | $ 1,553.5 | $ 1,521.1 | $ 1,553.5 | $ 1,521.1 |
Segment Reporting - Revenue by Service Line (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Collection: | ||||
Total collection | $ 1,813.5 | $ 1,777.2 | $ 5,334.9 | $ 5,222.8 |
Total collection (in percentage) | 75.20% | 75.80% | 76.10% | 76.50% |
Transfer | $ 304.9 | $ 289.3 | $ 869.9 | $ 831.7 |
Less: intercompany | (179.1) | (174.9) | (521.9) | (510.3) |
Transfer, net | $ 125.8 | $ 114.4 | $ 348.0 | $ 321.4 |
Transfer, net (in percentage) | 5.20% | 4.90% | 5.00% | 4.70% |
Landfill | $ 543.0 | $ 536.5 | $ 1,568.6 | $ 1,523.9 |
Less: intercompany | (249.7) | (246.4) | (726.9) | (714.3) |
Landfill, net | $ 293.3 | $ 290.1 | $ 841.7 | $ 809.6 |
Landfill, net (in percentage) | 12.20% | 12.40% | 12.00% | 11.90% |
Energy services | $ 17.3 | $ 22.1 | $ 53.1 | $ 73.3 |
Energy services (in percentage) | 0.70% | 0.90% | 0.80% | 1.10% |
Other: | ||||
Sale of recycled commodities | $ 114.6 | $ 99.4 | $ 302.8 | $ 277.7 |
Sale of recyclable commodities (in percentage) | 4.80% | 4.20% | 4.30% | 4.10% |
Other non-core | $ 44.8 | $ 40.8 | $ 128.0 | $ 120.0 |
Other non-core (in percentage) | 1.90% | 1.80% | 1.80% | 1.70% |
Total other | $ 159.4 | $ 140.2 | $ 430.8 | $ 397.7 |
Total other (in percentage) | 6.70% | 6.00% | 6.10% | 5.80% |
Total revenue | $ 2,409.3 | $ 2,344.0 | $ 7,008.5 | $ 6,824.8 |
Total revenue (in percentage) | 100.00% | 100.00% | 100.00% | 100.00% |
Residential | ||||
Collection: | ||||
Total collection | $ 564.4 | $ 564.9 | $ 1,675.5 | $ 1,682.4 |
Total collection (in percentage) | 23.40% | 24.10% | 23.90% | 24.70% |
Small-container commercial | ||||
Collection: | ||||
Total collection | $ 728.0 | $ 704.2 | $ 2,150.6 | $ 2,098.1 |
Total collection (in percentage) | 30.20% | 30.00% | 30.70% | 30.70% |
Large-container industrial | ||||
Collection: | ||||
Total collection | $ 511.7 | $ 497.2 | $ 1,480.5 | $ 1,412.1 |
Total collection (in percentage) | 21.20% | 21.20% | 21.10% | 20.70% |
Other | ||||
Collection: | ||||
Total collection | $ 9.4 | $ 10.9 | $ 28.3 | $ 30.2 |
Total collection (in percentage) | 0.40% | 0.50% | 0.40% | 0.40% |
Commitments and Contingencies - Legal Proceedings (Details) $ in Millions |
Sep. 30, 2016
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Losses accrued related to legal proceedings | $ 55 |
Loss contingency additional potential liability | $ 51 |
Commitments and Contingencies - Multiemployer Pension Plans (Details) |
9 Months Ended |
---|---|
Sep. 30, 2016
pension_plan
| |
Commitments and Contingencies Disclosure [Abstract] | |
Number of multi-employer pension plans (in number of plans) | 26 |
Commitments and Contingencies - Restricted Cash and marketable Securities (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Restricted Cash and Marketable Securities [Abstract] | ||
Financing proceeds | $ 0.0 | $ 2.1 |
Holdback escrow | 0.0 | 16.8 |
Capping, closure and post-closure obligations | 27.8 | 27.3 |
Insurance | 57.8 | 54.1 |
Total restricted cash and marketable securities | $ 85.6 | $ 100.3 |
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