XML 55 R26.htm IDEA: XBRL DOCUMENT v3.20.1
Subsequent Events
3 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

19.SUBSEQUENT EVENTS

On April 23, 2020, the Company announced that its Board of Directors approved a regular quarterly cash dividend of $0.185 per Company common share. The dividend will be paid on May 19, 2020, to shareholders of record on the close of business on May 5, 2020.

On April 30, 2020, the Company repaid $500,000 on its revolver under its Credit Agreement with available cash on hand in conjunction with its monthly loan borrowing and repayment activities.

The U.S. Department of Treasury finalized regulations on April 7, 2020 under Internal Revenue Code section 267A related to the deductibility of certain related-party payments.  With these regulations becoming finalized, the Company expects that certain related-party payments taken into account for purposes of preparing the Company’s 2019 Condensed Consolidated Financial Statements, which were issued prior to these section 267A regulations being finalized, will not be deductible on the Company’s 2019 income tax returns which will be filed later this year.  Although the determination of

the ultimate tax liability resulting from these related-party payments no longer being deductible on the Company’s 2019 income tax returns remains under review, the Company estimates an additional income tax expense will result of approximately $27,400. Since the regulations were finalized after the Company’s first quarter, the additional tax expense related to 2019 resulting from the final regulations will be included in the Company’s quarterly reporting period ending June 30, 2020.

The challenges posed by the COVID-19 outbreak on the global economy increased significantly as the first quarter progressed, impacting the demand for Waste Connections’ services in varying ways across the U.S. and Canada and across a variety of lines of business, including commercial collection and solid waste and E&P waste disposal.  In response to COVID-19, national and local governments around the world have instituted certain measures, including travel bans, prohibitions on group events and gatherings, shutdowns of certain businesses, curfews, shelter-in-place orders and recommendations to practice social distancing.  The ultimate impact of the COVID-19 outbreak on our business, results of operations, financial condition and cash flows will depend largely on future developments, including the duration and spread of the outbreak in the U.S. and Canada, its severity, the actions to contain the novel coronavirus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume, all of which are uncertain and cannot be predicted at this time.