UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________________________ 

FORM 10-Q

 _________________________________________________________

(Mark One)

☑
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to                     

Commission File Number: 1-14267

_________________________________________________________ 

REPUBLIC SERVICES, INC.

(Exact name of registrant as specified in its charter)

_________________________________________________________ 

Delaware		65-0716904
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
18500 North Allied Way		85054
Phoenix,	Arizona
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (480) 627-2700

_________________________________________________________ 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	RSG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  þ    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	þ	Accelerated filer	¨	Smaller reporting company	☐
Non-accelerated filer	¨			Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.					¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  þ

As of July 28, 2022, the registrant had outstanding 315,933,309 shares of Common Stock, par value $0.01 per share (excluding treasury shares of 4,158,976).

REPUBLIC SERVICES, INC.

INDEX

 

PART I — FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Consolidated Balance Sheets as of June 30, 2022 (Unaudited) and December 31, 2021	3
	Unaudited Consolidated Statement of Income for the Three and Six Months Ended June 30, 2022 and 2021	4
	Unaudited Consolidated Statement of Comprehensive Income for the Three and Six Months Ended June 30, 2022 and 2021	5
	Unaudited Consolidated Statement of Stockholders' Equity for the Three and Six Months Ended June 30, 2022 and 2021	6
	Unaudited Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2022 and 2021	7
	Notes to Unaudited Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	48
Item 4.	Controls and Procedures	48
PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	50
Item 1A.	Risk Factors	50
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 3.	Defaults upon Senior Securities	51
Item 4.	Mine Safety Disclosures	51
Item 5.	Other Information	51
Item 6.	Exhibits	52
	Signatures	53

2

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

REPUBLIC SERVICES, INC.

CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)

	June 30,		December 31,
	2022		2021
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	119.4	$	29.0
Accounts receivable, less allowance for doubtful accounts and other of $50.6 and $38.5, respectively	1,654.7		1,271.4
Prepaid expenses and other current assets	366.5		410.4
Total current assets	2,140.6		1,710.8
Restricted cash and marketable securities	121.5		139.0
Property and equipment, net	10,395.8		9,232.1
Goodwill	14,166.3		12,826.0
Other intangible assets, net	398.7		259.5
Other assets	990.0		787.6
Total assets	$	28,212.9	$	24,955.0
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,044.6	$	910.0
Notes payable and current maturities of long-term debt	313.8		8.2
Deferred revenue	419.6		381.3
Accrued landfill and environmental costs, current portion	121.3		124.5
Accrued interest	74.0		62.1
Other accrued liabilities	961.3		929.5
Total current liabilities	2,934.6		2,415.6
Long-term debt, net of current maturities	11,589.5		9,546.2
Accrued landfill and environmental costs, net of current portion	2,072.8		1,837.7
Deferred income taxes and other long-term tax liabilities, net	1,432.4		1,229.5
Insurance reserves, net of current portion	302.4		303.9
Other long-term liabilities	665.2		642.4
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; 320.1 and 319.6 issued including shares held in treasury, respectively	3.2		3.2
Additional paid-in capital	2,818.9		2,789.5
Retained earnings	6,907.1		6,475.6
Treasury stock, at cost; 4.1 and 2.4 shares, respectively	(500.4)		(274.8)
Accumulated other comprehensive loss, net of tax	(13.4)		(14.6)
Total Republic Services, Inc. stockholders’ equity	9,215.4		8,978.9
Non-controlling interests in consolidated subsidiary	0.6		0.8
Total stockholders’ equity	9,216.0		8,979.7
Total liabilities and stockholders’ equity	$	28,212.9	$	24,955.0

The accompanying notes are an integral part of these statements.

3

REPUBLIC SERVICES, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share data)

 

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenue	$	3,413.6	$	2,812.3	$	6,383.7	$	5,408.2
Expenses:
Cost of operations	2,064.4		1,650.2		3,828.1		3,184.0
Depreciation, amortization and depletion	337.6		303.0		647.9		585.2
Accretion	22.4		20.7		44.1		41.1
Selling, general and administrative	391.5		315.8		699.3		581.2
Withdrawal costs - multiemployer pension funds	2.2		—		2.2		—
Loss (gain) on business divestitures and impairments, net	—		0.9		—		(0.2)
Restructuring charges	5.9		3.8		11.9		6.6
Operating income	589.6		517.9		1,150.2		1,010.3
Interest expense	(94.0)		(78.4)		(177.5)		(156.7)
Loss from unconsolidated equity method investments	(13.6)		(12.4)		(17.4)		(28.9)
Interest income	0.7		0.6		1.2		1.4
Other (expense) income, net	(4.6)		(0.3)		(6.2)		1.4
Income before income taxes	478.1		427.4		950.3		827.5
Provision for income taxes	106.3		95.4		226.6		199.1
Net income	371.8		332.0		723.7		628.4
Net loss (income) attributable to non-controlling interests in consolidated subsidiary	0.1		(0.9)		0.2		(1.4)
Net income attributable to Republic Services, Inc.	$	371.9	$	331.1	$	723.9	$	627.0
Basic earnings per share attributable to Republic Services, Inc. stockholders:
Basic earnings per share	$	1.18	$	1.04	$	2.29	$	1.96
Weighted average common shares outstanding	316.5		319.5		316.5		319.5
Diluted earnings per share attributable to Republic Services, Inc. stockholders:
Diluted earnings per share	$	1.17	$	1.03	$	2.28	$	1.96
Weighted average common and common equivalent shares outstanding	317.0		320.0		317.1		319.9
Cash dividends per common share	$	0.460	$	0.425	$	0.920	$	0.850

The accompanying notes are an integral part of these statements.

4

REPUBLIC SERVICES, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

 

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income	$	371.8	$	332.0	$	723.7	$	628.4
Other comprehensive income (loss), net of tax
Hedging activity:
Realized loss reclassified into earnings	1.1		1.2		2.2		2.3
Unrealized loss	(1.1)		—		(1.1)		—
Pension activity:
Change in funded status of pension plan obligations	—		(0.7)		—		(0.7)
Foreign currency activity:
Gain on foreign currency translation	0.1		—		0.1		—
Other comprehensive income, net of tax	0.1		0.5		1.2		1.6
Comprehensive income	371.9		332.5		724.9		630.0
Comprehensive loss (income) attributable to non-controlling interests	0.1		(0.9)		0.2		(1.4)
Comprehensive income attributable to Republic Services, Inc.	$	372.0	$	331.6	$	725.1	$	628.6

The accompanying notes are an integral part of these statements.

5

REPUBLIC SERVICES, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in millions)

	Republic Services, Inc. Stockholders’ Equity
	Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock			Accumulated Other Comprehensive Loss, Net of Tax		Non-controlling Interests In Consolidated Subsidiary
	Shares	Amount						Shares	Amount						Total
Balance as of December 31, 2021	319.6	$	3.2	$	2,789.5	$	6,475.6	(2.4)	$	(274.8)	$	(14.6)	$	0.8	$	8,979.7
Net income (loss)	—	—		—		352.0		—	—		—		(0.1)		351.9
Other comprehensive income	—	—		—		—		—	—		1.1		—		1.1
Cash dividends declared	—	—		—		(145.3)		—	—		—		—		(145.3)
Issuances of common stock	0.3	—		2.6		—		(0.1)	(14.1)		—		—		(11.5)
Stock-based compensation	—	—		13.2		(0.9)		—	—		—		—		12.3
Purchase of common stock for treasury	—	—		—		—		(1.6)	(203.5)		—		—		(203.5)
Balance as of March 31, 2022	319.9	3.2		2,805.3		6,681.4		(4.1)	(492.4)		(13.5)		0.7		8,984.7
Net income	—	—		—		371.9		—	—		—		(0.1)		371.8
Other comprehensive income	—	—		—		—		—	—		0.1		—		0.1
Cash dividends declared	—	—		—		(145.3)		—	—		—		—		(145.3)
Issuances of common stock	0.2	—		4.0		—		—	(8.0)		—		—		(4.0)
Stock-based compensation	—	—		9.6		(0.9)		—	—		—		—		8.7
Purchase of common stock for treasury	—	—		—		—		—	—		—		—		—
Balance as of June 30, 2022	320.1	$	3.2	$	2,818.9	$	6,907.1	(4.1)	$	(500.4)	$	(13.4)	$	0.6	$	9,216.0

	Republic Services, Inc. Stockholders’ Equity
	Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock			Accumulated Other Comprehensive Loss, Net of Tax		Non-controlling Interests In Consolidated Subsidiary
	Shares	Amount						Shares	Amount						Total
Balance as of December 31, 2020	318.8	$	3.2	$	2,741.4	$	5,751.8	—	$	(0.1)	$	(12.4)	$	4.9	$	8,488.8
Net income	—	—		—		295.9		—	—		—		0.5		296.4
Other comprehensive income	—	—		—		—		—	—		1.1		—		1.1
Cash dividends declared	—	—		—		(135.6)		—	—		—		—		(135.6)
Issuances of common stock	0.5	—		2.4		—		(0.2)	(14.7)		—		—		(12.3)
Stock-based compensation	—	—		13.5		(0.9)		—	—		—		—		12.6
Purchase of common stock for treasury	—	—		—		—		(0.1)	(12.7)		—		—		(12.7)
Balance as of March 31, 2021	319.3	3.2		2,757.3		5,911.2		(0.3)	(27.5)		(11.3)		5.4		8,638.3
Net income	—	—		—		331.1		—	—		—		0.9		332.0
Other comprehensive income	—	—		—		—		—	—		0.5		—		0.5
Cash dividends declared	—	—		—		(135.4)		—	—		—		—		(135.4)
Issuances of common stock	0.1	—		3.1		—		—	(0.2)		—		—		2.9
Stock-based compensation	—	—		26.7		(0.9)		—	—		—		—		25.8
Purchase of common stock for treasury	—	—		—		—		(0.3)	(79.5)		—		—		(79.5)
Distributions paid	—	—		—		—		—	—		—		(1.2)		(1.2)
Balance as of June 30, 2021	319.4	$	3.2	$	2,787.1	$	6,106.0	(0.6)	$	(107.2)	$	(10.8)	$	5.1	$	8,783.4

The accompanying notes are an integral part of these statements.

6

REPUBLIC SERVICES, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

	Six Months Ended June 30,
	2022		2021
Cash provided by operating activities:
Net income	$	723.7	$	628.4
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, amortization, depletion and accretion	692.0		626.3
Non-cash interest expense	38.1		34.2
Stock-based compensation	21.2		38.6
Deferred tax provision	52.8		42.5
Provision for doubtful accounts, net of adjustments	17.2		11.4
(Gain) loss on disposition of assets and asset impairments, net	(3.2)		0.2
Environmental adjustments	—		4.8
Loss from unconsolidated equity method investments	17.4		28.9
Other non-cash items	6.3		(1.7)
Change in assets and liabilities, net of effects from business acquisitions and divestitures:
Accounts receivable	(150.4)		(68.1)
Prepaid expenses and other assets	72.6		88.8
Accounts payable	167.1		54.4
Capping, closure and post-closure expenditures	(18.0)		(26.8)
Remediation expenditures	(21.1)		(21.7)
Other liabilities	(52.2)		42.6
Cash provided by operating activities	1,563.5		1,482.8
Cash (used in) provided by investing activities:
Purchases of property and equipment	(647.3)		(608.6)
Proceeds from sales of property and equipment	20.0		8.2
Cash used in acquisitions and investments, net of cash and restricted cash acquired	(2,655.0)		(576.6)
Cash received from business divestitures	—		45.9
Purchases of restricted marketable securities	(9.1)		(16.6)
Sales of restricted marketable securities	8.5		14.9
Other	(1.0)		(0.3)
Cash used in investing activities	(3,283.9)		(1,133.1)
Cash provided by (used in) financing activities:
Proceeds from credit facilities and notes payable, net of fees	5,338.9		2,737.9
Payments of credit facilities and notes payable	(3,027.1)		(2,756.1)
Issuances of common stock, net	(15.5)		(9.5)
Purchases of common stock for treasury	(203.5)		(40.1)
Cash dividends paid	(291.2)		(271.1)
Distributions paid to non-controlling interests in consolidated subsidiary	—		(1.2)
Contingent consideration payments	(2.9)		(11.8)
Cash provided by (used in) financing activities	1,798.7		(351.9)
Effect of foreign exchange rate changes on cash	(0.1)		—
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	78.2		(2.2)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	105.6		114.2
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$	183.7	$	112.0

The accompanying notes are an integral part of these statements.

7

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION

Republic Services, Inc., a Delaware corporation, and its consolidated subsidiaries (also referred to collectively as Republic, the Company, we, us, or our), is one of the largest providers of environmental services in the United States, as measured by revenue. We manage and evaluate our operations through three operating segments, Group 1, Group 2, and Environmental Solutions.

The unaudited consolidated financial statements include the accounts of Republic Services, Inc. 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 the equity method of accounting or, for investments that do not meet the criteria to be accounted for under the equity method, we reflect these investments at their fair value when it is readily determinable. If fair value is not readily determinable, we use an alternative measurement approach. 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 have 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 fiscal year ended December 31, 2021.

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 funds, 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 fiscal year ended December 31, 2021. Our actual results may differ significantly from our estimates.

New Accounting Pronouncements

Accounting Standards Updates Issued but not yet Adopted

Facilitation of the Effects of Reference Rate Reform on Financial Reporting

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. During the quarter ended June 30, 2022, we novated a certain hedging relationship related to one of our interest rate swap agreements by changing the reference rate from the London Interbank Offered Rate (LIBOR) to a secured overnight financing rate (SOFR). The amendment did not have a material impact on our consolidated financial statements. For further discussion of the amendment and relevant hedging relationship, refer to Note 7, Debt, in Part I, Item 1 of this Quarterly Report on Form 10-Q. We have not modified any other contracts as a result of reference rate reform.

8

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Business Combinations

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08). ASU 2021-08 improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the recognition of an acquired contract liability and the payment terms and their effect on subsequent revenue recognized by the acquirer. ASU 2021-08 is effective for all entities that enter into a business combination within the applicable scope. The amendments in this update are effective for fiscal years beginning after December 15, 2022. We are currently assessing the effect this guidance may have on our consolidated financial statements.

2. BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES

Acquisitions

We acquired various environmental services, waste, and recycling businesses during the six months ended June 30, 2022 and 2021. The aggregate purchase price paid for these business acquisitions and the allocations of the aggregate purchase price follows:

	2022		2021
Purchase price:
Cash used in acquisitions, net of cash acquired of $64.6 and $3.0, respectively	$	2,516.6	$	561.7
Holdbacks	10.1		5.5
Fair value, future minimum finance lease payments	15.6		40.2
Total	$	2,542.3	$	607.4
Allocated as follows:
Restricted cash	$	—	$	7.2
Accounts receivable	250.5		16.7
Prepaid expenses	15.5		—
Landfill development costs	495.7		65.9
Property and equipment	688.0		67.1
Operating right-of-use lease assets	55.4		0.4
Interest rate swap	29.1		—
Assets held for sale	—		43.1
Other assets	38.0		2.1
Inventory	11.2		0.3
Accounts payable	(109.2)		(10.6)
Deferred revenue	(25.6)		(3.0)
Environmental remediation liabilities	(92.4)		(14.4)
Closure and post-closure liabilities	(88.9)		(32.2)
Operating right-of-use lease liabilities	(55.8)		(0.4)
Deferred income tax liabilities	(151.0)		—
Other liabilities	(49.5)		(11.3)
Fair value of tangible assets acquired and liabilities assumed	1,011.0		130.9
Excess purchase price to be allocated	$	1,531.3	$	476.5
Excess purchase price allocated as follows:
Other intangible assets	$	162.9	$	37.8
Goodwill	1,368.4		438.7
Total allocated	$	1,531.3	$	476.5

The purchase price allocations are preliminary and based on information existing at the acquisition dates. Accordingly, the purchase price allocations are subject to change. Excluding the US Ecology acquisition discussed below, substantially all of the goodwill and intangible assets recorded for these acquisitions are deductible for tax purposes.

9

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

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.

On May 2, 2022, we acquired all outstanding equity of US Ecology, Inc. (US Ecology) in a transaction valued at $2.2 billion. US Ecology is a leading provider of environmental solutions offering treatment, recycling and disposal of hazardous, non-hazardous and specialty waste. We financed the transaction using the proceeds of a new $1.0 billion unsecured Term Loan Credit Agreement (Term Loan Facility) and borrowings under our existing $3.0 billion unsecured revolving credit facility. For further discussion of the borrowings used to fund the US Ecology acquisition, refer to Note 7, Debt, in Part I, Item 1 of this Quarterly Report on Form 10-Q. The preliminary purchase price allocation for the US Ecology acquisition is reflected in the table above and remains subject to revisions as additional information is obtained about the facts and circumstances that existed at the valuation date. The preliminary allocation of purchase price, including the value of certain tangible and intangible assets acquired as well as certain leases and environmental liabilities assumed, is based on the best estimates of management and is subject to revision based on the final valuations. We do not expect a step-up in the tax basis of the assets recognized in connection with the US Ecology acquisition, and do not expect the goodwill and intangible assets will be deductible for tax purposes.

During the three and six months ended June 30, 2022, we incurred $51.9 million and $56.6 million, respectively, of acquisition integration and deal costs in connection with the acquisition of US Ecology, which included certain costs to close the acquisition and integrate the business, including stock compensation expense for unvested equity awards at closing as well as severance and change-in-control payments.

Investments

In July 2022, we made an investment of approximately $90 million in a joint venture with a landfill gas to energy developer to construct 39 renewable natural gas projects across the United States. The agreement provides for additional contributions as certain project milestones are achieved over the next four to five years.

In 2022 and 2021, we acquired non-controlling equity interests in certain limited liability companies that qualified for investment tax credits under Section 48 of the Internal Revenue Code. In exchange for our non-controlling interests, we made capital contributions of $121.0 million and $22.7 million, which were recorded to other assets in our June 30, 2022 and 2021 consolidated balance sheets, respectively. During the three and six months ended June 30, 2022, we reduced the carrying value of these investments by $11.9 million and $12.2 million, respectively, and during the three and six months ended June 30, 2021, we reduced the carrying value of these investments by $12.0 million and $25.7 million, respectively, as a result of cash distributions and our share of income and loss pursuant to the terms of the limited liability company agreements. Additionally, our tax provisions reflect a benefits of approximately $24 million and $25 million for the three and six months ended June 30, 2022, respectively, due to the tax credits related to these investments. Our tax provisions reflect a similar benefit of approximately $20 million for both the three and six months ended June 30, 2021. For further discussion of the income tax benefits, refer to Note 11, Income Taxes, in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2021.

Restructuring Charges

During the three and six months ended June 30, 2022, we incurred restructuring charges of $5.9 million and $11.9 million, respectively, and during the three and six months ended June 30, 2021, we incurred restructuring charges of $3.8 million and $6.6 million, respectively, related to the redesign of certain back-office software systems. During the six months ended June 30, 2022 and 2021, we paid $8.3 million and $8.6 million, respectively, related to these restructuring efforts.

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REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

3. GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Goodwill

A summary of the activity and balances in goodwill accounts by reporting segment follows:

	Balance as of December 31, 2021		Acquisitions		Divestitures		Adjustments to Acquisitions		Balance as of June 30, 2022
Group 1	$	6,549.7	$	31.1	$	—	$	(2.5)	$	6,578.3
Group 2	5,994.2		203.9		—		6.7		6,204.8
Corporate entities and other	282.1		1,133.4		—		(32.3)		1,383.2
Total	$	12,826.0	$	1,368.4	$	—	$	(28.1)	$	14,166.3

Adjustments to acquisitions during the six months ended June 30, 2022 primarily related to changes in our valuation of fixed assets and certain landfill leases as a result of obtaining new information regarding the acquisitions that closed in 2021. The preliminary goodwill associated with our acquisition of US Ecology is assigned to our Environmental Solutions operating segment and is included within Corporate entities and other above.

Other Intangible Assets, Net

Other intangible assets, net, include values assigned to customer relationships, non-compete agreements and trade names, and are amortized over periods ranging from 1 to 15 years. A summary of the activity and balances by intangible asset type follows:

	Gross Intangible Assets								Accumulated Amortization
	Balance as of December 31, 2021		Acquisitions		Adjustments and Other		Balance as of June 30, 2022		Balance as of December 31, 2021		Additions Charged to Expense		Adjustments and Other		Balance as of June 30, 2022		Other Intangible Assets, Net as of June 30, 2022
Customer relationships	$	898.4	$	148.6	$	—	$	1,047.0	$	(666.8)	$	(19.8)	$	0.2	$	(686.4)	$	360.6
Non-compete agreements	60.4		4.1		—		64.5		(44.6)		(3.0)		—		(47.6)		16.9
Other intangible assets	58.0		10.2		—		68.2		(45.9)		(1.1)		—		(47.0)		21.2
Total	$	1,016.8	$	162.9	$	—	$	1,179.7	$	(757.3)	$	(23.9)	$	0.2	$	(781.0)	$	398.7

4. OTHER ASSETS

Prepaid Expenses and Other Current Assets

A summary of prepaid expenses and other current assets as of June 30, 2022 and December 31, 2021 follows:

	2022		2021
Prepaid expenses	$	101.9	$	85.3
Inventories	100.2		72.2
Income taxes receivable	91.0		173.8
Reinsurance receivable	30.6		31.0
Other non-trade receivables	28.7		32.2
Prepaid fees for cloud-based hosting arrangements, current	8.8		12.9
Other current assets