Price Graph
Price
Yield
These terms and conditions govern your use of the website alphaminr.com and its related services.
These Terms and Conditions (“Terms”) are a binding contract between you and Alphaminr, (“Alphaminr”, “we”, “us” and “service”). You must agree to and accept the Terms. These Terms include the provisions in this document as well as those in the Privacy Policy. These terms may be modified at any time.
Your subscription will be on a month to month basis and automatically renew every month. You may terminate your subscription at any time through your account.
We will provide you with advance notice of any change in fees.
You represent that you are of legal age to form a binding contract. You are responsible for any
activity associated with your account. The account can be logged in at only one computer at a
time.
The Services are intended for your own individual use. You shall only use the Services in a
manner that complies with all laws. You may not use any automated software, spider or system to
scrape data from Alphaminr.
Alphaminr is not a financial advisor and does not provide financial advice of any kind. The service is provided “As is”. The materials and information accessible through the Service are solely for informational purposes. While we strive to provide good information and data, we make no guarantee or warranty as to its accuracy.
TO THE EXTENT PERMITTED BY APPLICABLE LAW, UNDER NO CIRCUMSTANCES SHALL ALPHAMINR BE LIABLE TO YOU FOR DAMAGES OF ANY KIND, INCLUDING DAMAGES FOR INVESTMENT LOSSES, LOSS OF DATA, OR ACCURACY OF DATA, OR FOR ANY AMOUNT, IN THE AGGREGATE, IN EXCESS OF THE GREATER OF (1) FIFTY DOLLARS OR (2) THE AMOUNTS PAID BY YOU TO ALPHAMINR IN THE SIX MONTH PERIOD PRECEDING THIS APPLICABLE CLAIM. SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL OR CERTAIN OTHER DAMAGES, SO THE ABOVE LIMITATION AND EXCLUSIONS MAY NOT APPLY TO YOU.
If any provision of these Terms is found to be invalid under any applicable law, such provision shall not affect the validity or enforceability of the remaining provisions herein.
This privacy policy describes how we (“Alphaminr”) collect, use, share and protect your personal information when we provide our service (“Service”). This Privacy Policy explains how information is collected about you either directly or indirectly. By using our service, you acknowledge the terms of this Privacy Notice. If you do not agree to the terms of this Privacy Policy, please do not use our Service. You should contact us if you have questions about it. We may modify this Privacy Policy periodically.
When you register for our Service, we collect information from you such as your name, email address and credit card information.
Like many other websites we use “cookies”, which are small text files that are stored on your computer or other device that record your preferences and actions, including how you use the website. You can set your browser or device to refuse all cookies or to alert you when a cookie is being sent. If you delete your cookies, if you opt-out from cookies, some Services may not function properly. We collect information when you use our Service. This includes which pages you visit.
We use Google Analytics and we use Stripe for payment processing. We will not share the information we collect with third parties for promotional purposes. We may share personal information with law enforcement as required or permitted by law.
|
(Mark One)
|
||||
|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. | |||
|
|
For the quarterly period ended March 31, 2011 | |||
|
OR
|
||||
|
|
||||
|
o
|
OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. | |||
|
|
For the transition period from to | |||
| DELAWARE | 65-0716904 | |
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
| 18500 NORTH ALLIED WAY | 85054 | |
| PHOENIX, ARIZONA | (Zip code) | |
| (Address of principal executive offices) |
|
Large accelerated filer
þ
|
Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
|
(Do not check if a smaller reporting company)
|
||||||
2
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (Unaudited) | ||||||||
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 67.9 | $ | 88.3 | ||||
|
Accounts receivable, less allowance for doubtful accounts of $45.4 and $50.9, respectively
|
839.5 | 828.9 | ||||||
|
Prepaid expenses and other current assets
|
187.1 | 207.4 | ||||||
|
Deferred tax assets
|
115.8 | 121.5 | ||||||
|
|
||||||||
|
Total current assets
|
1,210.3 | 1,246.1 | ||||||
|
Restricted cash and marketable securities
|
164.9 | 172.8 | ||||||
|
Property and equipment, net
|
6,693.6 | 6,698.5 | ||||||
|
Goodwill
|
10,657.2 | 10,655.3 | ||||||
|
Other intangible assets, net
|
435.0 | 451.3 | ||||||
|
Other assets
|
235.7 | 237.9 | ||||||
|
|
||||||||
|
Total assets
|
$ | 19,396.7 | $ | 19,461.9 | ||||
|
|
||||||||
|
|
||||||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable
|
$ | 431.6 | $ | 606.5 | ||||
|
Notes payable and current maturities of long-term debt
|
615.7 | 878.5 | ||||||
|
Deferred revenue
|
316.4 | 295.1 | ||||||
|
Accrued landfill and environmental costs, current portion
|
180.0 | 182.0 | ||||||
|
Accrued interest
|
78.2 | 93.1 | ||||||
|
Other accrued liabilities
|
748.9 | 621.3 | ||||||
|
|
||||||||
|
Total current liabilities
|
2,370.8 | 2,676.5 | ||||||
|
Long-term debt, net of current maturities
|
6,192.3 | 5,865.1 | ||||||
|
Accrued landfill and environmental costs, net of current portion
|
1,433.6 | 1,416.6 | ||||||
|
Deferred income taxes and other long-term liabilities
|
1,051.8 | 1,044.8 | ||||||
|
Self-insurance reserves, net of current portion
|
312.0 | 304.5 | ||||||
|
Other long-term liabilities
|
238.6 | 305.5 | ||||||
|
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; 400.7 and 400.2
issued including shares held in treasury, respectively
|
4.0 | 4.0 | ||||||
|
Additional paid-in capital
|
6,449.9 | 6,431.1 | ||||||
|
Retained earnings
|
1,972.5 | 1,890.3 | ||||||
|
Treasury stock, at cost (21.5 and 16.5 shares, respectively)
|
(648.7 | ) | (500.8 | ) | ||||
|
Accumulated other comprehensive income, net of tax
|
17.6 | 21.9 | ||||||
|
|
||||||||
|
Total Republic Services, Inc. stockholders’ equity
|
7,795.3 | 7,846.5 | ||||||
|
Noncontrolling interests
|
2.3 | 2.4 | ||||||
|
|
||||||||
|
Total stockholders’ equity
|
7,797.6 | 7,848.9 | ||||||
|
|
||||||||
|
Total liabilities and stockholders’ equity
|
$ | 19,396.7 | $ | 19,461.9 | ||||
|
|
||||||||
3
| Three Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
|
Revenue
|
$ | 1,964.9 | $ | 1,957.7 | ||||
|
Expenses:
|
||||||||
|
Cost of operations
|
1,159.7 | 1,136.8 | ||||||
|
Depreciation, amortization and depletion
|
205.8 | 203.0 | ||||||
|
Accretion
|
19.7 | 20.2 | ||||||
|
Selling, general and administrative
|
203.9 | 210.3 | ||||||
|
(Gain) loss on disposition of assets and impairments, net
|
(0.4 | ) | 0.5 | |||||
|
Restructuring charges
|
— | 5.6 | ||||||
|
|
||||||||
|
Operating income
|
376.2 | 381.3 | ||||||
|
Interest expense
|
(115.7 | ) | (134.5 | ) | ||||
|
Loss on extinguishment of debt
|
(1.8 | ) | (132.3 | ) | ||||
|
Interest income
|
0.2 | — | ||||||
|
Other income, net
|
1.1 | 1.7 | ||||||
|
|
||||||||
|
Income before income taxes
|
260.0 | 116.2 | ||||||
|
Provision for income taxes
|
101.9 | 51.0 | ||||||
|
|
||||||||
|
Net income
|
158.1 | 65.2 | ||||||
|
Net loss (income) attributable to noncontrolling interests
|
0.1 | (0.2 | ) | |||||
|
|
||||||||
|
Net income attributable to Republic Services, Inc.
|
$ | 158.2 | $ | 65.0 | ||||
|
|
||||||||
|
|
||||||||
|
Basic earnings per share attributable to Republic Services, Inc.
stockholders:
|
||||||||
|
Basic earnings per share
|
$ | 0.41 | $ | 0.17 | ||||
|
|
||||||||
|
Weighted average common shares outstanding
|
382.2 | 381.4 | ||||||
|
|
||||||||
|
Diluted earnings per share attributable to Republic Services, Inc.
stockholders:
|
||||||||
|
Diluted earnings per share
|
$ | 0.41 | $ | 0.17 | ||||
|
|
||||||||
|
Weighted average common and common equivalent
shares outstanding
|
384.0 | 383.3 | ||||||
|
|
||||||||
|
|
||||||||
|
Cash dividends per common share
|
$ | 0.20 | $ | 0.19 | ||||
|
|
||||||||
4
| Republic Services, Inc. Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
| Accumulated | ||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||
| Additional | Comprehensive | |||||||||||||||||||||||||||||||||||
| Common Stock | Paid-In | Retained | Income (Loss), | Treasury Stock | Noncontrolling | |||||||||||||||||||||||||||||||
| Total | Shares | Amount | Capital | Earnings | Net of Tax | Shares | Amount | Interests | ||||||||||||||||||||||||||||
|
Balance as of December 31, 2010
|
$ | 7,848.9 | 400.2 | $ | 4.0 | $ | 6,431.1 | $ | 1,890.3 | $ | 21.9 | (16.5 | ) | $ | (500.8 | ) | $ | 2.4 | ||||||||||||||||||
|
Net income
|
158.1 | — | — | — | 158.2 | — | — | — | (0.1 | ) | ||||||||||||||||||||||||||
|
Other comprehensive loss
|
(4.3 | ) | — | — | — | — | (4.3 | ) | — | — | — | |||||||||||||||||||||||||
|
Cash dividends declared
|
(75.8 | ) | — | — | — | (75.8 | ) | — | — | — | — | |||||||||||||||||||||||||
|
Issuances of common stock
|
11.0 | 0.5 | — | 11.0 | — | — | — | — | — | |||||||||||||||||||||||||||
|
Stock-based compensation
|
7.6 | — | — | 7.8 | (0.2 | ) | — | — | — | — | ||||||||||||||||||||||||||
|
Purchase of common stock for treasury
|
(147.9 | ) | — | — | — | — | — | (5.0 | ) | (147.9 | ) | — | ||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Balance as of March 31, 2011
|
$ | 7,797.6 | 400.7 | $ | 4.0 | $ | 6,449.9 | $ | 1,972.5 | $ | 17.6 | (21.5 | ) | $ | (648.7 | ) | $ | 2.3 | ||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
5
| Three Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
|
Cash provided by operating activities:
|
||||||||
|
Net income
|
$ | 158.1 | $ | 65.2 | ||||
|
Adjustments to reconcile net income to cash provided by operating activities:
|
||||||||
|
Depreciation and amortization of property and equipment
|
127.5 | 129.0 | ||||||
|
Landfill depletion and amortization
|
59.6 | 56.4 | ||||||
|
Amortization of intangible and other assets
|
18.7 | 17.6 | ||||||
|
Accretion
|
19.7 | 20.2 | ||||||
|
Non-cash interest expense — debt
|
10.1 | 16.2 | ||||||
|
Non-cash interest expense — other
|
12.1 | 12.2 | ||||||
|
Stock-based compensation
|
7.6 | 6.2 | ||||||
|
Deferred tax provision (benefit)
|
13.3 | (50.8 | ) | |||||
|
Provision for doubtful accounts, net of adjustments
|
0.4 | 2.5 | ||||||
|
Excess income tax benefit from stock option exercises
|
(0.7 | ) | (0.8 | ) | ||||
|
Asset impairments
|
0.4 | 0.1 | ||||||
|
Loss on extinguishment of debt
|
1.8 | 132.3 | ||||||
|
Gain on disposition of assets, net
|
(5.3 | ) | (4.3 | ) | ||||
|
Other non-cash items
|
(0.2 | ) | 1.3 | |||||
|
Change in assets and liabilities, net of effects from business acquisitions and divestitures:
|
||||||||
|
Accounts receivable
|
(11.4 | ) | 11.9 | |||||
|
Prepaid expenses and other assets
|
23.9 | 13.2 | ||||||
|
Accounts payable
|
(45.9 | ) | (99.2 | ) | ||||
|
Restructuring and synergy related expenditures
|
(2.0 | ) | (8.2 | ) | ||||
|
Capping, closure and post-closure expenditures
|
(13.2 | ) | (10.5 | ) | ||||
|
Remediation expenditures
|
(8.5 | ) | (11.5 | ) | ||||
|
Other liabilities
|
67.7 | 0.1 | ||||||
|
|
||||||||
|
Cash provided by operating activities
|
433.7 | 299.1 | ||||||
|
|
||||||||
|
|
||||||||
|
Cash used in investing activities:
|
||||||||
|
Purchases of property and equipment
|
(297.2 | ) | (208.4 | ) | ||||
|
Proceeds from sales of property and equipment
|
6.9 | 5.9 | ||||||
|
Cash used in acquisitions, net of cash acquired
|
(16.5 | ) | (0.8 | ) | ||||
|
Cash proceeds from divestitures, net of cash divested
|
4.9 | — | ||||||
|
Change in restricted cash and marketable securities
|
7.9 | 18.6 | ||||||
|
Other
|
(0.3 | ) | 0.6 | |||||
|
|
||||||||
|
Cash used in investing activities
|
(294.3 | ) | (184.1 | ) | ||||
|
|
||||||||
|
|
||||||||
|
Cash used in financing activities:
|
||||||||
|
Proceeds from notes payable and long-term debt
|
486.5 | 731.5 | ||||||
|
Proceeds from issuance of senior notes, net of discount
|
— | 1,499.4 | ||||||
|
Payments of notes payable and long-term debt
|
(431.1 | ) | (2,198.4 | ) | ||||
|
Premiums paid on extinguishment of debt
|
(1.5 | ) | (30.4 | ) | ||||
|
Fees paid to issue and retire senior notes and certain hedging relationships
|
(0.1 | ) | (20.8 | ) | ||||
|
Issuances of common stock
|
10.3 | 9.4 | ||||||
|
Excess income tax benefit from stock option exercises
|
0.7 | 0.8 | ||||||
|
Purchases of common stock for treasury
|
(147.9 | ) | — | |||||
|
Cash dividends paid
|
(76.7 | ) | (72.4 | ) | ||||
|
Distributions paid to noncontrolling interests
|
— | (0.7 | ) | |||||
|
|
||||||||
|
Cash used in financing activities
|
(159.8 | ) | (81.6 | ) | ||||
|
|
||||||||
|
|
||||||||
|
(Decrease) increase in cash and cash equivalents
|
(20.4 | ) | 33.4 | |||||
|
Cash and cash equivalents at beginning of period
|
88.3 | 48.0 | ||||||
|
|
||||||||
|
Cash and cash equivalents at end of period
|
$ | 67.9 | $ | 81.4 | ||||
|
|
||||||||
6
7
| Balance at | Adjustments | Balance at | ||||||||||||||||||
| December 31, | to | March 31, | ||||||||||||||||||
| 2010 | Acquisitions | Divestitures | Acquisitions | 2011 | ||||||||||||||||
|
Eastern
|
$ | 2,791.9 | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | $ | 2,791.7 | ||||||||
|
Midwestern
|
2,129.6 | 4.4 | — | — | 2,134.0 | |||||||||||||||
|
Southern
|
2,721.8 | — | — | (0.1 | ) | 2,721.7 | ||||||||||||||
|
Western
|
3,012.0 | — | (2.1 | ) | (0.1 | ) | 3,009.8 | |||||||||||||
|
|
||||||||||||||||||||
|
Total
|
$ | 10,655.3 | $ | 4.3 | $ | (2.1 | ) | $ | (0.3 | ) | $ | 10,657.2 | ||||||||
|
|
||||||||||||||||||||
| Balance at | Adjustments | Balance at | ||||||||||||||||||
| December 31, | to | March 31, | ||||||||||||||||||
| 2009 | Acquisitions | Divestitures | Acquisitions | 2010 | ||||||||||||||||
|
Eastern
|
$ | 2,818.5 | $ | — | $ | — | $ | (0.4 | ) | $ | 2,818.1 | |||||||||
|
Midwestern
|
2,118.2 | — | — | (0.3 | ) | 2,117.9 | ||||||||||||||
|
Southern
|
2,724.7 | — | — | (0.5 | ) | 2,724.2 | ||||||||||||||
|
Western
|
3,005.7 | — | — | (0.5 | ) | 3,005.2 | ||||||||||||||
|
|
||||||||||||||||||||
|
Total
|
$ | 10,667.1 | $ | — | $ | — | $ | (1.7 | ) | $ | 10,665.4 | |||||||||
|
|
||||||||||||||||||||
| Gross Intangible Assets | Accumulated Amortization | Net | ||||||||||||||||||||||||||
| Balance at | Balance at | Balance at | Additions | Balance at | Intangibles at | |||||||||||||||||||||||
| December 31, | March 31, | December 31, | Charged | March 31, | March 31, | |||||||||||||||||||||||
| 2010 | Acquisitions | 2011 | 2010 | to Expense | 2011 | 2011 | ||||||||||||||||||||||
|
Customer relationships, franchise and other municipal agreements
|
$ | 537.1 | $ | 0.7 | $ | 537.8 | $ | (130.7 | ) | $ | (15.4 | ) | $ | (146.1 | ) | $ | 391.7 | |||||||||||
|
Trade names
|
30.0 | — | 30.0 | (12.5 | ) | (1.5 | ) | (14.0 | ) | 16.0 | ||||||||||||||||||
|
Non-compete agreements
|
12.9 | 1.1 | 14.0 | (7.2 | ) | (0.4 | ) | (7.6 | ) | 6.4 | ||||||||||||||||||
|
Other intangible assets
|
62.9 | — | 62.9 | (41.2 | ) | (0.8 | ) | (42.0 | ) | 20.9 | ||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Total
|
$ | 642.9 | $ | 1.8 | $ | 644.7 | $ | (191.6 | ) | $ | (18.1 | ) | $ | (209.7 | ) | $ | 435.0 | |||||||||||
|
|
||||||||||||||||||||||||||||
8
| Gross Intangible Assets | Accumulated Amortization | Net | ||||||||||||||||||||||||||
| Balance at | Adjustments | Balance at | Balance at | Additions | Balance at | Intangibles at | ||||||||||||||||||||||
| December 31, | to | March 31, | December 31, | Charged | March 31, | March 31, | ||||||||||||||||||||||
| 2009 | Acquisitions | 2010 | 2009 | to Expense | 2010 | 2010 | ||||||||||||||||||||||
|
Customer relationships, franchise
and other municipal agreements
|
$ | 521.1 | $ | 0.5 | $ | 521.6 | $ | (70.5 | ) | $ | (14.9 | ) | $ | (85.4 | ) | $ | 436.2 | |||||||||||
|
Trade names
|
30.0 | — | 30.0 | (6.5 | ) | (1.5 | ) | (8.0 | ) | 22.0 | ||||||||||||||||||
|
Non-compete agreements
|
7.4 | 0.1 | 7.5 | (6.5 | ) | (0.1 | ) | (6.6 | ) | 0.9 | ||||||||||||||||||
|
Other intangibles assets
|
62.9 | — | 62.9 | (37.9 | ) | (0.9 | ) | (38.8 | ) | 24.1 | ||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Total
|
$ | 621.4 | $ | 0.6 | $ | 622.0 | $ | (121.4 | ) | $ | (17.4 | ) | $ | (138.8 | ) | $ | 483.2 | |||||||||||
|
|
||||||||||||||||||||||||||||
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
|
Inventories
|
$ | 36.3 | $ | 31.3 | ||||
|
Prepaid expenses
|
59.7 | 55.9 | ||||||
|
Other non-trade receivables
|
77.4 | 45.4 | ||||||
|
Income tax receivable
|
— | 69.8 | ||||||
|
Other current assets
|
13.7 | 5.0 | ||||||
|
|
||||||||
|
Total
|
$ | 187.1 | $ | 207.4 | ||||
|
|
||||||||
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
|
Deferred financing costs
|
$ | 39.8 | $ | 41.1 | ||||
|
Deferred compensation plan
|
30.2 | 27.4 | ||||||
|
Notes and other receivables
|
34.8 | 34.0 | ||||||
|
Reinsurance receivable
|
52.2 | 54.5 | ||||||
|
Other
|
78.7 | 80.9 | ||||||
|
|
||||||||
|
Total
|
$ | 235.7 | $ | 237.9 | ||||
|
|
||||||||
9
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
|
Accrued payroll and benefits
|
$ | 143.2 | $ | 158.4 | ||||
|
Accrued fees and taxes
|
113.1 | 111.8 | ||||||
|
Self-insurance reserves, current portion
|
114.3 | 112.7 | ||||||
|
Accrued dividends
|
75.8 | 76.7 | ||||||
|
Synergy
incentive plan
|
68.1 | — | ||||||
|
Current tax liabilities
|
65.0 | — | ||||||
|
Restructuring liabilities
|
1.7 | 3.9 | ||||||
|
Accrued professional fees and legal settlement reserves
|
54.3 | 53.1 | ||||||
|
Other
|
113.4 | 104.7 | ||||||
|
|
||||||||
|
Total
|
$ | 748.9 | $ | 621.3 | ||||
|
|
||||||||
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
|
Deferred compensation liability
|
$ | 35.6 | $ | 27.7 | ||||
|
Pension and other postretirement liabilities
|
13.6 | 14.4 | ||||||
|
Contingent legal liabilities
|
102.7 | 105.8 | ||||||
|
Ceded insurance reserves
|
52.2 | 54.5 | ||||||
|
Other
|
34.5 | 103.1 | ||||||
|
|
||||||||
|
Total
|
$ | 238.6 | $ | 305.5 | ||||
|
|
||||||||
10
| Balance at | Balance at | |||||||||||
| December 31, | Payments / | March 31, | ||||||||||
| 2010 | Amortization | 2011 | ||||||||||
|
Unfavorable contracts
|
$ | 37.6 | $ | (2.3 | ) | $ | 35.3 | |||||
|
Lease exit costs
|
5.0 | (0.9 | ) | 4.1 | ||||||||
|
|
||||||||||||
|
Total
|
$ | 42.6 | $ | (3.2 | ) | $ | 39.4 | |||||
|
|
||||||||||||
| Balance at | Balance at | |||||||||||
| December 31, | Payments / | March 31, | ||||||||||
| 2009 | Amortization | 2010 | ||||||||||
|
Unfavorable contracts
|
$ | 49.0 | $ | (2.5 | ) | $ | 46.5 | |||||
|
Lease exit costs
|
6.4 | (0.5 | ) | 5.9 | ||||||||
|
|
||||||||||||
|
Total
|
$ | 55.4 | $ | (3.0 | ) | $ | 52.4 | |||||
|
|
||||||||||||
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
|
Landfill final capping, closure and post-closure liabilities
|
$ | 1,061.7 | $ | 1,046.5 | ||||
|
Remediation
|
551.9 | 552.1 | ||||||
|
|
||||||||
|
|
1,613.6 | 1,598.6 | ||||||
|
Less: Current portion
|
(180.0 | ) | (182.0 | ) | ||||
|
|
||||||||
|
Long-term portion
|
$ | 1,433.6 | $ | 1,416.6 | ||||
|
|
||||||||
| 2011 | 2010 | |||||||
|
Asset retirement obligation liabilities, beginning of year
|
$ | 1,046.5 | $ | 1,074.5 | ||||
|
Non-cash additions
|
7.6 | 7.2 | ||||||
|
Acquisitions and other adjustments
|
2.7 | 0.5 | ||||||
|
Asset retirement obligation adjustments
|
(1.6 | ) | (5.4 | ) | ||||
|
Payments
|
(13.2 | ) | (10.5 | ) | ||||
|
Accretion expense
|
19.7 | 20.2 | ||||||
|
|
||||||||
|
Asset retirement obligation liabilities, end of period
|
1,061.7 | 1,086.5 | ||||||
|
Less: Current portion
|
(92.9 | ) | (135.7 | ) | ||||
|
|
||||||||
|
Long-term portion
|
$ | 968.8 | $ | 950.8 | ||||
|
|
||||||||
11
| 2011 | 2010 | |||||||
|
Remediation liabilities, beginning of year
|
$ | 552.1 | $ | 554.1 | ||||
|
Acquisitions and other adjustments
|
— | 1.5 | ||||||
|
Additions charged to expense
|
— | 2.3 | ||||||
|
Payments
|
(8.5 | ) | (11.5 | ) | ||||
|
Accretion expense
|
8.3 | 7.3 | ||||||
|
|
||||||||
|
Remediation liabilities, end of period
|
551.9 | 553.7 | ||||||
|
Less: Current portion
|
(87.1 | ) | (105.3 | ) | ||||
|
|
||||||||
|
Long-term portion
|
$ | 464.8 | $ | 448.4 | ||||
|
|
||||||||
12
| March 31, 2011 | December 31, 2010 | |||||||
|
$1.0 billion Revolver due 2012, Eurodollar and Base Rate borrowings
|
$ | 192.0 | $ | 50.0 | ||||
|
$1.75 billion Revolver due 2013, Eurodollar and Base Rate borrowings
|
210.0 | 25.0 | ||||||
|
Senior notes, fixed interest rate of 5.750%, due February 2011
|
— | 261.7 | ||||||
|
Senior notes, fixed interest rate of 6.375%, due April 2011
|
216.6 | 215.1 | ||||||
|
Senior notes, fixed interest rate of 6.750%, due August 2011
|
390.0 | 392.0 | ||||||
|
Senior notes, fixed interest rate of 7.125%, due May 2016
|
537.9 | 535.5 | ||||||
|
Senior notes, fixed interest rate of 6.875%, due June 2017
|
666.5 | 663.9 | ||||||
|
Senior notes, fixed interest rate of 5.500%, due September 2019
|
645.9 | 645.8 | ||||||
|
Senior notes, fixed interest rate of 5.000%, due March 2020
|
849.9 | 849.9 | ||||||
|
Senior notes, fixed interest rate of 5.250%, due November 2021
|
600.0 | 600.0 | ||||||
|
Debentures, fixed interest rate of 9.250%, due May 2021
|
88.8 | 93.4 | ||||||
|
Senior notes, fixed interest rate of 6.086%, due March 2035
|
249.9 | 249.8 | ||||||
|
Debentures, fixed interest rate of 7.400%, due September 2035
|
267.8 | 267.6 | ||||||
|
Senior notes, fixed interest rate of 6.200%, due March 2040
|
649.5 | 649.5 | ||||||
|
Tax-exempt bonds and other tax-exempt financings; fixed and floating
interest
rates ranging from 0.22% to 8.25%; maturities ranging from 2012 to 2035
|
1,151.3 | 1,151.8 | ||||||
|
Other debt unsecured and secured by real property, equipment and other
assets;
interest rates ranging from 5.00% to 11.90% maturing through 2042
|
91.9 | 92.6 | ||||||
|
|
||||||||
|
Total debt
|
6,808.0 | 6,743.6 | ||||||
|
Less: Current portion
|
(615.7 | ) | (878.5 | ) | ||||
|
|
||||||||
|
Long-term portion
|
$ | 6,192.3 | $ | 5,865.1 | ||||
|
|
||||||||
13
14
| Reduction to Interest Expense | ||||||||
| Due to Periodic Settlements | ||||||||
| of Active Swap Agreements | ||||||||
| Three Months Ended March 31, | ||||||||
| Consolidated Statement of Income Classification | 2011 | 2010 | ||||||
|
Interest
expense
|
$ | 2.2 | $ | 2.2 | ||||
15
| Amount of Gain | ||||||||
| or (Loss) | ||||||||
| Recognized in | ||||||||
| OCI on | ||||||||
| Derivatives | ||||||||
| (Effective Portion) | ||||||||
| 2011 | 2010 | |||||||
|
Interest rate locks
|
$ | (7.4 | ) | $ | (3.7 | ) | ||
16
| 2011 | 2010 | |||||||
|
Expected volatility
|
27.3 | % | 28.6 | % | ||||
|
Risk-free interest rate
|
1.7 | % | 2.4 | % | ||||
|
Dividend yield
|
2.7 | % | 2.9 | % | ||||
|
Expected life (in years)
|
4.4 | 4.3 | ||||||
|
Contractual life (in years)
|
7 | 7 | ||||||
|
Expected forfeiture rate
|
3.0 | % | 3.0 | % | ||||
17
| Weighted Average | Aggregate | |||||||||||||||
| Number | Weighted Average | Remaining | Intrinsic | |||||||||||||
| of Shares | Exercise | Contractual Term | Value | |||||||||||||
| (in millions) | Price per Share | (years) | (in millions) | |||||||||||||
|
Outstanding at December 31, 2010
|
13.6 | $ | 24.97 | |||||||||||||
|
Granted
|
2.8 | 29.87 | ||||||||||||||
|
Exercised
|
(0.4 | ) | 22.67 | $ | 3.3 | |||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Forfeited or expired
|
(0.1 | ) | 29.29 | |||||||||||||
|
|
||||||||||||||||
|
Outstanding at March 31, 2011
|
15.9 | $ | 25.87 | 4.8 | $ | 67.8 | ||||||||||
|
|
||||||||||||||||
|
Exercisable at March 31, 2011
|
9.3 | $ | 24.73 | 3.9 | $ | 50.4 | ||||||||||
|
|
||||||||||||||||
| Number of | ||||||||||||||||
| Restricted Stock | Weighted-Average | Weighted-Average | ||||||||||||||
| Units and Shares of | Grant Date | Remaining | Aggregate | |||||||||||||
| Restricted Stock | Fair Value per | Contractual | Intrinsic | |||||||||||||
| (in thousands) | Share | Term (years) | Value | |||||||||||||
|
Unissued at December 31, 2010
|
849.3 | $ | 26.39 | |||||||||||||
|
Granted
|
164.2 | 30.03 | ||||||||||||||
|
Vested and Issued
|
(79.1 | ) | 24.19 | |||||||||||||
|
Forfeited
|
— | — | ||||||||||||||
|
|
||||||||||||||||
|
Unissued at March 31, 2011
|
934.4 | $ | 27.22 | 0.7 | $ | 28.1 | ||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Vested and unissued at March 31, 2011
|
513.8 | $ | 27.15 | |||||||||||||
|
|
||||||||||||||||
18
| 2011 | 2010 | |||||||
|
Basic earnings per share:
|
||||||||
|
Net income attributable to Republic Services, Inc.
|
$ | 158,200 | $ | 65,000 | ||||
|
|
||||||||
|
|
||||||||
|
Weighted average common shares outstanding
|
382,172 | 381,428 | ||||||
|
|
||||||||
|
|
||||||||
|
Basic earnings per share
|
$ | 0.41 | $ | 0.17 | ||||
|
|
||||||||
|
Diluted earnings per share:
|
||||||||
|
Net income attributable to Republic Services, Inc.
|
$ | 158,200 | $ | 65,000 | ||||
|
|
||||||||
|
|
||||||||
|
Weighted average common shares outstanding
|
382,172 | 381,428 | ||||||
|
Effect of dilutive securities:
|
||||||||
|
Options to purchase common stock
|
1,706 | 1,723 | ||||||
|
Unvested restricted stock awards
|
102 | 130 | ||||||
|
|
||||||||
|
Weighted average common and common
equivalent shares outstanding
|
383,980 | 383,281 | ||||||
|
|
||||||||
|
|
||||||||
|
Diluted earnings per share
|
$ | 0.41 | $ | 0.17 | ||||
|
|
||||||||
|
Antidilutive securities not included in the diluted
earnings per share calculations:
|
||||||||
|
Options to purchase common stock
|
3,238 | 5,403 | ||||||
| 2011 | 2010 | |||||||
|
Net Income
|
$ | 158.1 | $ | 65.2 | ||||
|
Change in value, settlements and amortization of interest rate locks, net of tax
|
(7.4 | ) | (3.7 | ) | ||||
|
Change in value of commodity hedges, net of tax
|
0.6 | (3.2 | ) | |||||
|
Change in value of fuel hedges, net of tax
|
2.5 | — | ||||||
|
Employee benefit plan liability adjustments, net of tax
|
— | 0.1 | ||||||
|
|
||||||||
|
Comprehensive income
|
153.8 | 58.4 | ||||||
|
Comprehensive loss (income) attributable to noncontrolling interests
|
0.1 | (0.2 | ) | |||||
|
|
||||||||
|
Comprehensive income attributable to Republic Services, Inc.
|
$ | 153.9 | $ | 58.2 | ||||
|
|
||||||||
19
| Notional Amount | ||||||||||||
| (in Gallons | Contract Price | |||||||||||
| Inception Date | Commencement Date | Termination Date | per Month) | per Gallon | ||||||||
|
November 5, 2007
|
January 5, 2009 | December 30, 2013 | 60,000 | 3.28 | ||||||||
|
March 17, 2008
|
January 5, 2009 | December 31, 2012 | 50,000 | 3.72 | ||||||||
|
March 17, 2008
|
January 5, 2009 | December 31, 2012 | 50,000 | 3.74 | ||||||||
|
September 22, 2008
|
January 1, 2009 | December 31, 2011 | 150,000 | 4.16 - 4.17 | ||||||||
|
July 10, 2009
|
January 1, 2011 | December 31, 2011 | 100,000 | 3.05 | ||||||||
|
July 10, 2009
|
January 1, 2012 | December 31, 2012 | 100,000 | 3.20 | ||||||||
| Location of Gain | Amount of Gain or (Loss) | |||||||||||||||||||||||||||
| (Loss) Recognized | Recognized in | |||||||||||||||||||||||||||
| Amount of Gain | in Income on Derivative | Income on Derivative | ||||||||||||||||||||||||||
| or (Loss) | (Ineffective Portion | (Ineffective Portion and | ||||||||||||||||||||||||||
| Derivatives in | Recognized in | and Amount | Amount Excluded | |||||||||||||||||||||||||
| Cash Flow | OCI on | Statement of | Amount of | Excluded from | from | |||||||||||||||||||||||
| Hedging | Derivatives | Income | Realized Gain or | Effectiveness | Effectiveness | |||||||||||||||||||||||
| Relationships | (Effective Portion) | Classification | (Loss) | Testing) | Testing) | |||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||
|
Fuel hedges
|
$ | 2.5 | $ | — | Cost of operations | $ | (0.1 | ) | $ | (0.9 | ) | Other income, net | $ | 0.1 | $ | — | ||||||||||||
20
| Notional Amount | Contract Price | |||||||||||||
| Transaction | (in Short Tons | Per Short | ||||||||||||
| Inception Date | Commencement Date | Termination Date | Hedged | per Month) | Ton | |||||||||
|
December 8, 2009
|
January 1, 2010 | December 31, 2011 | ONP | 2,000 | 76.00 | |||||||||
|
December 10, 2009
|
January 1, 2010 | December 31, 2011 | OCC | 2,000 | 82.00 | |||||||||
|
December 11, 2009
|
January 1, 2010 | December 31, 2011 | OCC | 2,000 | 82.00 | |||||||||
|
January 5, 2010
|
January 1, 2010 | December 31, 2011 | ONP | 2,000 | 84.00 | |||||||||
|
January 6, 2010
|
January 1, 2010 | December 31, 2011 | OCC | 1,000 | 90.00 | |||||||||
|
January 27, 2010
|
February 1, 2010 | January 31, 2012 | OCC | 1,000 | 90.00 | |||||||||
|
September 23, 2010
|
January 1, 2011 | December 31, 2011 | ONP | 1,000 | 95.00 | |||||||||
|
September 28, 2010
|
January 1, 2011 | December 31, 2011 | ONP | 1,000 | 95.00 | |||||||||
|
October 11, 2010
|
January 1, 2011 | December 31, 2012 | OCC | 1,500 | 115.00 | |||||||||
| Floor | Cap | |||||||||||||||||
| Notional Amount | Strike Price | Strike Price | ||||||||||||||||
| Transaction | (in Short Tons | Per Short | Per Short | |||||||||||||||
| Inception Date | Commencement Date | Termination Date | Hedged | per Month) | Ton | Ton | ||||||||||||
|
December 8, 2010
|
January 1, 2011 | December 31, 2012 | OCC | 2,000 | $ | 80.00 | $ | 180.00 | ||||||||||
|
December 8, 2010
|
January 1, 2011 | December 31, 2012 | OCC | 2,000 | 86.00 | 210.00 | ||||||||||||
|
December 8, 2010
|
January 1, 2011 | December 31, 2012 | OCC | 2,000 | 81.00 | 190.00 | ||||||||||||
|
December 8, 2010
|
January 1, 2011 | December 31, 2012 | OCC | 2,000 | 85.00 | 195.00 | ||||||||||||
|
December 8, 2010
|
January 1, 2011 | December 31, 2012 | OCC | 2,000 | 87.00 | 195.00 | ||||||||||||
|
January 19, 2011
|
February 1, 2011 | December 31, 2012 | OCC | 2,500 | 90.00 | 155.00 | ||||||||||||
|
January 19, 2011
|
February 1, 2011 | December 31, 2012 | OCC | 2,500 | 90.00 | 155.00 | ||||||||||||
21
| Location of Gain | Amount of Gain or (Loss) | |||||||||||||||||||||||||||
| (Loss) Recognized | Recognized in | |||||||||||||||||||||||||||
| Amount of Gain | in Income on Derivative | Income on Derivative | ||||||||||||||||||||||||||
| or (Loss) | (Ineffective Portion | (Ineffective Portion and | ||||||||||||||||||||||||||
| Derivatives in | Recognized in | and Amount | Amount Excluded | |||||||||||||||||||||||||
| Cash Flow | OCI on | Statement of | Amount of | Excluded from | from | |||||||||||||||||||||||
| Hedging | Derivatives | Income | Realized Gain or | Effectiveness | Effectiveness | |||||||||||||||||||||||
| Relationships | (Effective Portion) | Classification | (Loss) | Testing) | Testing) | |||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||
|
Recycling commodity
hedges
|
$ | 0.6 | $ | (3.2 | ) | Revenue | $ | (1.9 | ) | $ | (0.9 | ) | Other income, net | $ | — | $ | (0.2 | ) | ||||||||||
| Fair Value Measurements Using | ||||||||||||||||
| Quoted | Significant | |||||||||||||||
| Prices in | Other | Significant | ||||||||||||||
| Active | Observable | Unobservable | ||||||||||||||
| Total as of | Markets | Inputs | Inputs | |||||||||||||
| March 31, 2011 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
|
Assets:
|
||||||||||||||||
|
Restricted cash and marketable securities
|
$ | 164.9 | $ | 164.9 | $ | — | $ | — | ||||||||
|
Fuel hedges — other current assets
|
4.2 | — | 4.2 | — | ||||||||||||
|
Commodity hedges — other current assets
|
2.8 | — | 2.8 | — | ||||||||||||
|
Interest rate locks — other non-trade receivables
|
0.3 | 0.3 | ||||||||||||||
|
Interest rate swaps — other non-trade receivables
|
3.1 | — | 3.1 | — | ||||||||||||
|
|
||||||||||||||||
|
Total assets
|
$ | 175.3 | $ | 164.9 | $ | 10.4 | $ | — | ||||||||
|
|
||||||||||||||||
|
Liabilities:
|
||||||||||||||||
|
Fuel hedges — other accrued liabilities
|
$ | 0.2 | $ | — | $ | 0.2 | $ | — | ||||||||
|
Commodity hedges — other accrued liabilities
|
6.2 | — | 6.2 | — | ||||||||||||
|
Interest rate locks — other accrued liabilities
|
13.1 | — | 13.1 | — | ||||||||||||
|
|
||||||||||||||||
|
Total liabilities
|
$ | 19.5 | $ | — | $ | 19.5 | $ | — | ||||||||
|
|
||||||||||||||||
22
| Fair Value Measurements Using | ||||||||||||||||
| Quoted | Significant | |||||||||||||||
| Prices in | Other | Significant | ||||||||||||||
| Active | Observable | Unobservable | ||||||||||||||
| Total as of | Markets | Inputs | Inputs | |||||||||||||
| December 31, 2010 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
|
Assets:
|
||||||||||||||||
|
Restricted cash and marketable securities
|
$ | 172.8 | $ | 172.8 | $ | — | $ | — | ||||||||
|
Fuel hedges — other current assets
|
1.6 | — | 1.6 | — | ||||||||||||
|
Commodity hedges — other current assets
|
1.9 | — | 1.9 | — | ||||||||||||
|
Interest rate swaps — other assets
|
5.2 | — | 5.2 | — | ||||||||||||
|
|
||||||||||||||||
|
Total assets
|
$ | 181.5 | $ | 172.8 | $ | 8.7 | $ | — | ||||||||
|
|
||||||||||||||||
|
Liabilities:
|
||||||||||||||||
|
Fuel hedges — other accrued liabilities
|
$ | 1.9 | $ | — | $ | 1.9 | $ | — | ||||||||
|
Commodity hedges — other accrued
liabilities
|
6.5 | — | 6.5 | — | ||||||||||||
|
|
||||||||||||||||
|
Total liabilities
|
$ | 8.4 | $ | — | $ | 8.4 | $ | — | ||||||||
|
|
||||||||||||||||
| Depreciation, | ||||||||||||||||||||||||||||
| Amortization, | Operating | |||||||||||||||||||||||||||
| Gross | Intercompany | Net | Depletion and | Income | Capital | |||||||||||||||||||||||
| Revenue | Revenue | Revenue | Accretion | (Loss) | Expenditures | Total Assets | ||||||||||||||||||||||
|
Three Months Ended
March 31, 2011:
|
||||||||||||||||||||||||||||
|
Eastern
|
$ | 584.0 | $ | (82.6 | ) | $ | 501.4 | $ | 51.4 | $ | 117.7 | $ | 48.5 | $ | 4,423.9 | |||||||||||||
|
Midwestern
|
505.3 | (86.4 | ) | 418.9 | 51.5 | 80.4 | 37.9 | 3,708.6 | ||||||||||||||||||||
|
Southern
|
570.8 | (76.1 | ) | 494.7 | 54.8 | 119.4 | 55.4 | 4,869.8 | ||||||||||||||||||||
|
Western
|
642.0 | (113.2 | ) | 528.8 | 55.3 | 123.0 | 57.3 | 5,494.9 | ||||||||||||||||||||
|
Corporate entities
|
25.1 | (4.0 | ) | 21.1 | 12.5 | (64.3 | ) | 98.1 | 899.5 | |||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Total
|
$ | 2,327.2 | $ | (362.3 | ) | $ | 1,964.9 | $ | 225.5 | $ | 376.2 | $ | 297.2 | $ | 19,396.7 | |||||||||||||
|
|
||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Three Months Ended
March 31, 2010:
|
||||||||||||||||||||||||||||
|
Eastern
|
$ | 585.2 | $ | (83.1 | ) | $ | 502.1 | $ | 51.6 | $ | 128.2 | $ | 37.1 | $ | 4,471.8 | |||||||||||||
|
Midwestern
|
503.3 | (88.5 | ) | 414.8 | 51.9 | 88.7 | 57.7 | 3,629.2 | ||||||||||||||||||||
|
Southern
|
565.7 | (76.1 | ) | 489.6 | 57.6 | 120.5 | 32.5 | 4,837.9 | ||||||||||||||||||||
|
Western
|
644.6 | (118.8 | ) | 525.8 | 49.5 | 130.6 | 24.0 | 5,443.0 | ||||||||||||||||||||
|
Corporate entities
|
31.1 | (5.7 | ) | 25.4 | 12.6 | (86.7 | ) | 57.1 | 1,083.4 | |||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Total
|
$ | 2,329.9 | $ | (372.2 | ) | $ | 1,957.7 | $ | 223.2 | $ | 381.3 | $ | 208.4 | $ | 19,465.3 | |||||||||||||
|
|
||||||||||||||||||||||||||||
23
| 2011 | 2010 | |||||||||||||||
|
Collection:
|
||||||||||||||||
|
Residential
|
$ | 525.7 | 26.7 | % | $ | 534.7 | 27.3 | % | ||||||||
|
Commercial
|
618.1 | 31.5 | 621.5 | 31.7 | ||||||||||||
|
Industrial
|
353.6 | 18.0 | 348.1 | 17.8 | ||||||||||||
|
Other
|
7.9 | 0.4 | 6.9 | 0.4 | ||||||||||||
|
|
||||||||||||||||
|
Total collection
|
1,505.3 | 76.6 | 1,511.2 | 77.2 | ||||||||||||
|
|
||||||||||||||||
|
Transfer and disposal
|
674.1 | 692.4 | ||||||||||||||
|
Less: Intercompany
|
(344.9 | ) | (357.5 | ) | ||||||||||||
|
|
||||||||||||||||
|
Transfer and
disposal, net
|
329.2 | 16.8 | 334.9 | 17.1 | ||||||||||||
|
|
||||||||||||||||
|
Sale of materials
|
97.9 | 5.0 | 71.6 | 3.7 | ||||||||||||
|
Other non-core
|
32.5 | 1.6 | 40.0 | 2.0 | ||||||||||||
|
|
||||||||||||||||
|
Other
|
130.4 | 6.6 | 111.6 | 5.7 | ||||||||||||
|
|
||||||||||||||||
|
Total revenue
|
$ | 1,964.9 | 100.0 | % | $ | 1,957.7 | 100.0 | % | ||||||||
|
|
||||||||||||||||
24
25
26
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
|
Financing proceeds
|
$ | 29.4 | $ | 39.8 | ||||
|
Capping,
closure and post-closure obligations and other
|
62.2 | 61.8 | ||||||
|
Self-insurance
|
66.8 | 63.8 | ||||||
|
Other
|
6.5 | 7.4 | ||||||
|
|
||||||||
|
Total restricted cash and marketable securities
|
$ | 164.9 | $ | 172.8 | ||||
|
|
||||||||
27
| March 31, 2011 | ||||||||||||||||||||
| Non - | ||||||||||||||||||||
| Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
|
ASSETS
|
||||||||||||||||||||
|
Current assets:
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 33.5 | $ | 32.0 | $ | 2.4 | $ | — | $ | 67.9 | ||||||||||
|
Accounts receivable, net
|
— | 814.2 | 25.3 | — | 839.5 | |||||||||||||||
|
Prepaid expenses and other current assets
|
79.8 | 81.7 | 25.6 | — | 187.1 | |||||||||||||||
|
Deferred tax assets
|
105.6 | — | 10.2 | — | 115.8 | |||||||||||||||
|
|
||||||||||||||||||||
|
Total current assets
|
218.9 | 927.9 | 63.5 | — | 1,210.3 | |||||||||||||||
|
Restricted cash and marketable securities
|
29.4 | 46.5 | 89.0 | — | 164.9 | |||||||||||||||
|
Property and equipment, net
|
46.8 | 6,277.7 | 369.1 | — | 6,693.6 | |||||||||||||||
|
Goodwill
|
— | 10,657.2 | — | — | 10,657.2 | |||||||||||||||
|
Other intangible assets, net
|
20.2 | 414.8 | — | — | 435.0 | |||||||||||||||
|
Investment and net advances to affiliate
|
13,894.3 | 39.0 | 149.9 | (14,083.2 | ) | — | ||||||||||||||
|
Other assets
|
88.2 | 94.8 | 52.7 | — | 235.7 | |||||||||||||||
|
|
||||||||||||||||||||
|
Total assets
|
$ | 14,297.8 | $ | 18,457.9 | $ | 724.2 | $ | (14,083.2 | ) | $ | 19,396.7 | |||||||||
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||
|
Current liabilities:
|
||||||||||||||||||||
|
Accounts payable
|
$ | 123.5 | $ | 292.7 | $ | 15.4 | $ | — | $ | 431.6 | ||||||||||
|
Notes payable and current maturities of long-term debt
|
390.1 | 223.8 | 1.8 | — | 615.7 | |||||||||||||||
|
Deferred revenue
|
— | 313.0 | 3.4 | — | 316.4 | |||||||||||||||
|
Accrued landfill and environmental costs, current portion
|
— | 180.0 | — | — | 180.0 | |||||||||||||||
|
Accrued interest
|
30.4 | 47.8 | — | — | 78.2 | |||||||||||||||
|
Other accrued liabilities
|
348.0 | 210.3 | 190.6 | — | 748.9 | |||||||||||||||
|
|
||||||||||||||||||||
|
Total current liabilities
|
892.0 | 1,267.6 | 211.2 | — | 2,370.8 | |||||||||||||||
|
Long-term debt, net of current maturities
|
4,418.1 | 1,759.7 | 14.5 | — | 6,192.3 | |||||||||||||||
|
Accrued landfill and environmental costs, net of current portion
|
— | 1,163.8 | 269.8 | — | 1,433.6 | |||||||||||||||
|
Deferred income taxes and other long-term tax liabilities
|
1,060.4 | — | (8.6 | ) | — | 1,051.8 | ||||||||||||||
|
Self-insurance reserves, net of current portion
|
— | 89.9 | 222.1 | — | 312.0 | |||||||||||||||
|
Other long-term liabilities
|
132.0 | 54.4 | 52.2 | — | 238.6 | |||||||||||||||
|
Commitments and contingencies
|
||||||||||||||||||||
|
Stockholders’ equity:
|
||||||||||||||||||||
|
Common stock
|
4.0 | — | — | — | 4.0 | |||||||||||||||
|
Other equity
|
7,791.3 | 14,122.5 | (39.3 | ) | (14,083.2 | ) | 7,791.3 | |||||||||||||
|
|
||||||||||||||||||||
|
Total Republic Services, Inc. stockholders’ equity
|
7,795.3 | 14,122.5 | (39.3 | ) | (14,083.2 | ) | 7,795.3 | |||||||||||||
|
Noncontrolling interests
|
— | — | 2.3 | — | 2.3 | |||||||||||||||
|
|
||||||||||||||||||||
|
Total stockholders’ equity
|
7,795.3 | 14,122.5 | (37.0 | ) | (14,083.2 | ) | 7,797.6 | |||||||||||||
|
|
||||||||||||||||||||
|
Total liabilities and stockholders’ equity
|
$ | 14,297.8 | $ | 18,457.9 | $ | 724.2 | $ | (14,083.2 | ) | $ | 19,396.7 | |||||||||
|
|
||||||||||||||||||||
28
| December 31, 2010 | ||||||||||||||||||||
| Non- | ||||||||||||||||||||
| Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
|
ASSETS
|
||||||||||||||||||||
|
Current assets:
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 14.5 | $ | 71.1 | $ | 2.7 | $ | — | $ | 88.3 | ||||||||||
|
Accounts receivable, net
|
— | 800.6 | 28.3 | — | 828.9 | |||||||||||||||
|
Prepaid expenses and other current assets
|
112.0 | 74.8 | 20.6 | — | 207.4 | |||||||||||||||
|
Deferred tax assets
|
111.2 | — | 10.3 | — | 121.5 | |||||||||||||||
|
|
||||||||||||||||||||
|
Total current assets
|
237.7 | 946.5 | 61.9 | — | 1,246.1 | |||||||||||||||
|
Restricted cash and marketable securities
|
39.8 | 47.0 | 86.0 | — | 172.8 | |||||||||||||||
|
Property and equipment, net
|
47.2 | 6,280.6 | 370.7 | — | 6,698.5 | |||||||||||||||
|
Goodwill
|
— | 10,655.3 | — | — | 10,655.3 | |||||||||||||||
|
Other intangible assets, net
|
21.8 | 429.5 | — | — | 451.3 | |||||||||||||||
|
Investment and net advances to affiliate
|
13,513.9 | 40.9 | 149.1 | (13,703.9 | ) | — | ||||||||||||||
|
Other assets
|
88.2 | 94.7 | 55.0 | — | 237.9 | |||||||||||||||
|
|
||||||||||||||||||||
|
Total assets
|
$ | 13,948.6 | $ | 18,494.5 | $ | 722.7 | $ | (13,703.9 | ) | $ | 19,461.9 | |||||||||
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||
|
Current liabilities:
|
||||||||||||||||||||
|
Accounts payable
|
$ | 89.7 | $ | 500.2 | $ | 16.6 | $ | — | $ | 606.5 | ||||||||||
|
Notes payable and current maturities of long-term debt
|
392.2 | 484.5 | 1.8 | — | 878.5 | |||||||||||||||
|
Deferred revenue
|
— | 291.6 | 3.5 | — | 295.1 | |||||||||||||||
|
Accrued landfill and environmental costs, current portion
|
— | 182.0 | — | — | 182.0 | |||||||||||||||
|
Accrued interest
|
61.4 | 31.7 | — | — | 93.1 | |||||||||||||||
|
Other accrued liabilities
|
222.3 | 200.5 | 198.5 | — | 621.3 | |||||||||||||||
|
|
||||||||||||||||||||
|
Total current liabilities
|
765.6 | 1,690.5 | 220.4 | — | 2,676.5 | |||||||||||||||
|
Long-term debt, net of current maturities
|
4,090.8 | 1,760.0 | 14.3 | — | 5,865.1 | |||||||||||||||
|
Accrued landfill and environmental costs, net of current portion
|
— | 1,148.1 | 268.5 | — | 1,416.6 | |||||||||||||||
|
Deferred income taxes and other long-term tax liabilities
|
1,053.3 | — | (8.5 | ) | — | 1,044.8 | ||||||||||||||
|
Self-insurance reserves, net of current portion
|
— | 97.7 | 206.8 | — | 304.5 | |||||||||||||||
|
Other long-term liabilities
|
192.4 | 58.6 | 54.5 | — | 305.5 | |||||||||||||||
|
Commitments and contingencies
|
||||||||||||||||||||
|
Stockholders’ equity:
|
||||||||||||||||||||
|
Common stock
|
4.0 | — | — | — | 4.0 | |||||||||||||||
|
Other equity
|
7,842.5 | 13,739.6 | (35.7 | ) | (13,703.9 | ) | 7,842.5 | |||||||||||||
|
|
||||||||||||||||||||
|
Total Republic Services, Inc. stockholders’ equity
|
7,846.5 | 13,739.6 | (35.7 | ) | (13,703.9 | ) | 7,846.5 | |||||||||||||
|
Noncontrolling interests
|
— | — | 2.4 | — | 2.4 | |||||||||||||||
|
|
||||||||||||||||||||
|
Total stockholders’ equity
|
7,846.5 | 13,739.6 | (33.3 | ) | (13,703.9 | ) | 7,848.9 | |||||||||||||
|
|
||||||||||||||||||||
|
Total liabilities and stockholders’ equity
|
$ | 13,948.6 | $ | 18,494.5 | $ | 722.7 | $ | (13,703.9 | ) | $ | 19,461.9 | |||||||||
|
|
||||||||||||||||||||
29
| Three Months Ended March 31, 2011 | ||||||||||||||||||||
| Non- | ||||||||||||||||||||
| Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
|
Revenue
|
$ | — | $ | 1,915.4 | $ | 64.8 | $ | (15.3 | ) | $ | 1,964.9 | |||||||||
|
Expenses:
|
||||||||||||||||||||
|
Cost of operations
|
2.3 | 1,124.1 | 48.6 | (15.3 | ) | 1,159.7 | ||||||||||||||
|
Depreciation, amortization and depletion
|
5.4 | 196.1 | 4.3 | — | 205.8 | |||||||||||||||
|
Accretion
|
— | 19.5 | 0.2 | — | 19.7 | |||||||||||||||
|
Selling, general and administrative
|
39.6 | 156.7 | 7.6 | — | 203.9 | |||||||||||||||
|
(Gain) loss on disposition of assets and impairments, net
|
(0.4 | ) | — | — | — | (0.4 | ) | |||||||||||||
|
|
||||||||||||||||||||
|
Operating income
|
(46.9 | ) | 419.0 | 4.1 | — | 376.2 | ||||||||||||||
|
Interest expense
|
(56.4 | ) | (59.7 | ) | 0.4 | — | (115.7 | ) | ||||||||||||
|
Loss on extinguishment of debt
|
— | (1.8 | ) | — | — | (1.8 | ) | |||||||||||||
|
Interest income
|
(1.8 | ) | (1.3 | ) | 3.3 | — | 0.2 | |||||||||||||
|
Other income, net
|
(3.1 | ) | 2.7 | 1.5 | — | 1.1 | ||||||||||||||
|
Equity in earnings of subsidiaries
|
338.2 | 3.4 | 0.8 | (342.4 | ) | — | ||||||||||||||
|
Intercompany interest income (expense)
|
(199.5 | ) | 197.1 | 2.4 | — | — | ||||||||||||||
|
|
||||||||||||||||||||
|
Income before income taxes
|
30.5 | 559.4 | 12.5 | (342.4 | ) | 260.0 | ||||||||||||||
|
Provision for income taxes
|
(127.7 | ) | 225.0 | 4.6 | — | 101.9 | ||||||||||||||
|
|
||||||||||||||||||||
|
Net income
|
158.2 | 334.4 | 7.9 | (342.4 | ) | 158.1 | ||||||||||||||
|
|
||||||||||||||||||||
|
Less: net loss attributable to noncontrolling interests
|
— | — | 0.1 | — | 0.1 | |||||||||||||||
|
|
||||||||||||||||||||
|
Net income attributable to Republic Services, Inc.
|
$ | 158.2 | $ | 334.4 | $ | 8.0 | $ | (342.4 | ) | $ | 158.2 | |||||||||
|
|
||||||||||||||||||||
| Three Months Ended March 31, 2010 | ||||||||||||||||||||
| Non- | ||||||||||||||||||||
| Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
|
Revenue
|
$ | — | $ | 1,902.4 | $ | 70.8 | $ | (15.5 | ) | $ | 1,957.7 | |||||||||
|
Expenses:
|
||||||||||||||||||||
|
Cost of operations
|
1.2 | 1,103.3 | 47.8 | (15.5 | ) | 1,136.8 | ||||||||||||||
|
Depreciation, amortization and depletion
|
5.0 | 195.2 | 2.8 | — | 203.0 | |||||||||||||||
|
Accretion
|
— | 4.4 | 15.8 | — | 20.2 | |||||||||||||||
|
Selling, general and administrative
|
52.5 | 154.6 | 3.2 | — | 210.3 | |||||||||||||||
|
(Gain) loss on disposition of assets and impairments, net
|
— | 0.5 | — | — | 0.5 | |||||||||||||||
|
Restructuring charges
|
— | 5.6 | — | — | 5.6 | |||||||||||||||
|
|
||||||||||||||||||||
|
Operating income
|
(58.7 | ) | 438.8 | 1.2 | — | 381.3 | ||||||||||||||
|
Interest expense
|
(42.5 | ) | (92.7 | ) | 0.7 | — | (134.5 | ) | ||||||||||||
|
Loss on extinguishment of debt
|
(0.1 | ) | (132.0 | ) | (0.2 | ) | — | (132.3 | ) | |||||||||||
|
Interest income
|
(0.3 | ) | 0.2 | 0.1 | — | — | ||||||||||||||
|
Other income, net
|
1.5 | 0.1 | 0.1 | — | 1.7 | |||||||||||||||
|
Equity in earnings of subsidiaries
|
51.6 | 7.9 | 0.9 | (60.4 | ) | — | ||||||||||||||
|
Intercompany interest income (expense)
|
123.3 | (143.3 | ) | 20.0 | — | — | ||||||||||||||
|
|
||||||||||||||||||||
|
Income before income taxes
|
74.8 | 79.0 | 22.8 | (60.4 | ) | 116.2 | ||||||||||||||
|
Provision for income taxes
|
9.8 | 32.2 | 9.0 | — | 51.0 | |||||||||||||||
|
|
||||||||||||||||||||
|
Net income
|
65.0 | 46.8 | 13.8 | (60.4 | ) | 65.2 | ||||||||||||||
|
|
||||||||||||||||||||
|
Less: net income attributable to noncontrolling interests
|
— | (0.2 | ) | — | — | (0.2 | ) | |||||||||||||
|
|
||||||||||||||||||||
|
Net income attributable to Republic Services, Inc.
|
$ | 65.0 | $ | 46.6 | $ | 13.8 | $ | (60.4 | ) | $ | 65.0 | |||||||||
|
|
||||||||||||||||||||
30
| Three Months Ended March 31, 2011 | ||||||||||||||||||||
| Non- | ||||||||||||||||||||
| Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
|
Cash (Used in) Provided by Operating Activities:
|
||||||||||||||||||||
|
Net income
|
$ | 158.2 | $ | 334.4 | $ | 7.9 | $ | (342.4 | ) | $ | 158.1 | |||||||||
|
Equity in earnings of subsidiaries, net of taxes
|
(338.2 | ) | (3.4 | ) | (0.8 | ) | 342.4 | — | ||||||||||||
|
Other adjustments
|
117.5 | 156.7 | 1.4 | — | 275.6 | |||||||||||||||
|
|
||||||||||||||||||||
|
Cash (Used in) Provided by Operating Activities
|
(62.5 | ) | 487.7 | 8.5 | — | 433.7 | ||||||||||||||
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
Cash (Used in) Provided by Investing Activities:
|
||||||||||||||||||||
|
Purchases of property and equipment
|
— | (291.8 | ) | (5.4 | ) | — | (297.2 | ) | ||||||||||||
|
Proceeds from sales of property and equipment
|
— | 6.9 | — | — | 6.9 | |||||||||||||||
|
Cash used in acquisitions, net of cash acquired
|
— | (16.5 | ) | — | — | (16.5 | ) | |||||||||||||
|
Cash proceeds from divestitures, net of cash divested
|
— | 4.9 | — | — | 4.9 | |||||||||||||||
|
Change in restricted cash and marketable securities
|
10.4 | 0.5 | (3.0 | ) | — | 7.9 | ||||||||||||||
|
Other
|
— | (0.3 | ) | — | — | (0.3 | ) | |||||||||||||
|
Change in investment and net advances to affiliate
|
(42.2 | ) | — | — | 42.2 | — | ||||||||||||||
|
|
||||||||||||||||||||
|
Cash (Used in) Provided by Investing Activities
|
(31.8 | ) | (296.3 | ) | (8.4 | ) | 42.2 | (294.3 | ) | |||||||||||
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
Cash Provided by (Used in) Financing Activities:
|
||||||||||||||||||||
|
Proceeds from notes payable and long-term debt
|
486.5 | — | — | — | 486.5 | |||||||||||||||
|
Payments of notes payable and long-term debt
|
(159.5 | ) | (271.2 | ) | (0.4 | ) | — | (431.1 | ) | |||||||||||
|
Premiums paid on extinguishment of debt
|
— | (1.5 | ) | — | — | (1.5 | ) | |||||||||||||
|
Fees paid to issue and retire senior notes and certain hedging
relationships
|
(0.1 | ) | — | — | — | (0.1 | ) | |||||||||||||
|
Issuances of common stock
|
10.3 | — | — | — | 10.3 | |||||||||||||||
|
Excess income tax benefit from stock option exercises
|
0.7 | — | — | — | 0.7 | |||||||||||||||
|
Purchases of common stock for treasury
|
(147.9 | ) | — | — | — | (147.9 | ) | |||||||||||||
|
Cash dividends paid
|
(76.7 | ) | — | — | — | (76.7 | ) | |||||||||||||
|
Change in investment and net advances from parent
|
— | 42.2 | — | (42.2 | ) | — | ||||||||||||||
|
|
||||||||||||||||||||
|
Cash Provided by (Used in) Financing Activities
|
113.3 | (230.5 | ) | (0.4 | ) | (42.2 | ) | (159.8 | ) | |||||||||||
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
Increase (Decrease) in Cash and Cash Equivalents
|
19.0 | (39.1 | ) | (0.3 | ) | — | (20.4 | ) | ||||||||||||
|
Cash and Cash Equivalents at Beginning of Period
|
14.5 | 71.1 | 2.7 | — | 88.3 | |||||||||||||||
|
|
||||||||||||||||||||
|
Cash and Cash Equivalents at End of Period
|
$ | 33.5 | $ | 32.0 | $ | 2.4 | $ | — | $ | 67.9 | ||||||||||
|
|
||||||||||||||||||||
31
| Three Months Ended March 31, 2010 | ||||||||||||||||||||
| Non- | ||||||||||||||||||||
| Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
|
Cash Provided by (Used in) Operating Activities:
|
||||||||||||||||||||
|
Net income
|
$ | 65.0 | 46.8 | $ | 13.8 | $ | (60.4 | ) | $ | 65.2 | ||||||||||
|
Equity in earnings of subsidiaries, net of taxes
|
(51.6 | ) | (7.9 | ) | (0.9 | ) | 60.4 | — | ||||||||||||
|
Other adjustments
|
(11.8 | ) | 259.3 | (13.6 | ) | — | 233.9 | |||||||||||||
|
|
||||||||||||||||||||
|
Cash Provided by (Used in) Operating Activities
|
1.6 | 298.2 | (0.7 | ) | — | 299.1 | ||||||||||||||
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
Cash Provided by (Used in) Investing Activities:
|
||||||||||||||||||||
|
Purchases of property and equipment
|
— | (208.4 | ) | — | — | (208.4 | ) | |||||||||||||
|
Proceeds from sales of property and equipment
|
— | 5.9 | — | — | 5.9 | |||||||||||||||
|
Cash used in acquisitions, net of cash acquired
|
— | (0.8 | ) | — | — | (0.8 | ) | |||||||||||||
|
Change in restricted cash and marketable securities
|
7.8 | 1.6 | 9.2 | — | 18.6 | |||||||||||||||
|
Other
|
— | 0.6 | — | — | 0.6 | |||||||||||||||
|
Change in investment and net advances to affiliate
|
(1,402.0 | ) | (300.0 | ) | (4.1 | ) | 1,706.1 | — | ||||||||||||
|
|
||||||||||||||||||||
|
Cash Provided by (Used in) Investing Activities
|
(1,394.2 | ) | (501.1 | ) | 5.1 | 1,706.1 | (184.1 | ) | ||||||||||||
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
Cash (Used in) Provided by Financing Activities:
|
||||||||||||||||||||
|
Proceeds from notes payable and long-term debt
|
731.5 | — | — | — | 731.5 | |||||||||||||||
|
Proceeds from issuance of senior notes, net of discount
|
1,499.4 | — | — | — | 1,499.4 | |||||||||||||||
|
Payments of notes payable and long-term debt
|
(847.6 | ) | (1,050.8 | ) | (300.0 | ) | — | (2,198.4 | ) | |||||||||||
|
Premiums paid on extinguishment of debt
|
— | (30.4 | ) | — | — | (30.4 | ) | |||||||||||||
|
Fees paid to issue and retire senior notes and certain hedging
relationships
|
(20.8 | ) | — | — | — | (20.8 | ) | |||||||||||||
|
Issuances of common stock
|
9.4 | — | — | — | 9.4 | |||||||||||||||
|
Excess income tax benefit from stock option exercises
|
0.8 | — | — | — | 0.8 | |||||||||||||||
|
Cash dividends paid
|
(72.4 | ) | — | — | — | (72.4 | ) | |||||||||||||
|
Distributions paid to noncontrolling interest
|
— | — | (0.7 | ) | — | (0.7 | ) | |||||||||||||
|
Change in investment and net advances from parent
|
— | 1,406.1 | 300.0 | (1,706.1 | ) | — | ||||||||||||||
|
|
||||||||||||||||||||
|
Cash (Used in) Provided by Financing Activities
|
1,300.3 | 324.9 | (0.7 | ) | (1,706.1 | ) | (81.6 | ) | ||||||||||||
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
Increase (Decrease) in Cash and Cash Equivalents
|
(92.3 | ) | 122.0 | 3.7 | — | 33.4 | ||||||||||||||
|
Cash and Cash Equivalents at Beginning of Period
|
101.8 | (62.6 | ) | 8.8 | — | 48.0 | ||||||||||||||
|
|
||||||||||||||||||||
|
Cash and Cash Equivalents at End of Period
|
$ | 9.5 | $ | 59.4 | $ | 12.5 | $ | — | $ | 81.4 | ||||||||||
|
|
||||||||||||||||||||
| • | We notified the registered holders of our 7.125% Senior Notes due 2016 (the 7.125% Senior Notes) that we will redeem all of the notes outstanding in May 2011. The 7.125% Senior Notes will be redeemed at a price equal to 103.563% of the principal amount, of which $600.0 million is outstanding, plus accrued and unpaid interest. We expect to incur a charge upon extinguishment of the 7.125% Senior Notes of $82.7 million, of which $21.4 million is the cash premium. | ||
| • | Our $1.0 billion revolving credit facility due April 2012 (the Amended and Restated Credit Facility) was amended and restated to increase the borrowing capacity to $1.25 billion and to extend the maturity to April 2016. The Amended and Restated Credit Facility includes a feature that will allow us to increase availability under the Amended and Restated Credit Facility, at our option, by an aggregate amount up to $500 million, through increased commitments from existing lenders or the addition of new lenders. At our option, borrowings under the Amended and Restated 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). The Amended and Restated Credit Facility contains customary affirmative and negative covenants, including, among other things, covenants requiring that we maintain certain financial ratios. We have the ability under the covenants in the Amended and Restated Credit Facility to pay dividends and to repurchase our common stock provided that we are in compliance with the covenants. Substantially all of our subsidiaries guarantee all obligations under the Amended and Restated Credit Facility. |
32
| Contemporaneous with the execution of the Amended and Restated Credit Facility, we entered into Amendment No. 2, to our existing $1.75 billion credit facility (the Existing Credit Facility), to reduce the commitments under the Existing Credit Facility to $1.25 billion and conform certain terms of the Existing Credit Facility with those of the Amended and Restated Credit Facility. Amendment No. 2 does not extend the maturity date under the Existing Credit Facility, which matures in September 2013. Substantially all of our subsidiaries continue to guarantee all obligations under the Existing Credit Facility. | |||
| • | Lastly, we commenced a cash tender offer to purchase during the second quarter of 2011 any and all of our 9.250% Debentures due 2021 (the 9.250% Debentures) and our 7.400% Debentures due 2035 (the 7.400% Debentures) outstanding. The 9.250% Debentures and the 7.400% Debentures will be purchased at a fixed spread pricing formula linked to the yield on a Referenced U.S. Treasury Security, plus accrued and unpaid interest. The actual amount of cash that may be received by a tendering holder will be affected by changes in such yield. We currently have $94.5 million and $360.0 million outstanding on the 9.250% and 7.400% Debentures, respectively. With respect to the Debentures tendered for purchase, we will incur a charge upon extinguishment for premiums paid to repurchase debt, charges for unamortized debt discounts and professional fees paid to effectuate the purchase in the second quarter of 2011. | ||
| We intend to use incremental borrowings under our revolving credit facility and cash on hand to fund the redemptions. We may also explore capital market opportunities to fund the redemptions if market conditions are favorable. |
33
| 2011 | 2010 | |||||||||||||||
|
Revenue
|
$ | 1,964.9 | 100.0 | % | $ | 1,957.7 | 100.0 | % | ||||||||
|
Expenses:
|
||||||||||||||||
|
Cost of operations
|
1,159.7 | 59.0 | 1,136.8 | 58.1 | ||||||||||||
|
Depreciation, amortization and
depletion of property and
equipment
|
187.1 | 9.5 | 185.4 | 9.5 | ||||||||||||
|
Amortization of other intangible
assets and other assets
|
18.7 | 1.0 | 17.6 | 0.9 | ||||||||||||
|
Accretion
|
19.7 | 1.0 | 20.2 | 1.0 | ||||||||||||
|
Selling, general and administrative
|
203.9 | 10.4 | 210.3 | 10.7 | ||||||||||||
|
(Gain) loss on disposition of assets and
impairments, net
|
(0.4 | ) | — | 0.5 | — | |||||||||||
|
Restructuring charges
|
— | — | 5.6 | 0.3 | ||||||||||||
|
|
||||||||||||||||
|
Operating income
|
$ | 376.2 | 19.1 | % | $ | 381.3 | 19.5 | % | ||||||||
|
|
||||||||||||||||
34
| 2011 | 2010 | |||||||||||||||||||||||
| Net | Diluted | Net | Diluted | |||||||||||||||||||||
| Pre-tax | Income - | Earnings | Pre-tax | Income - | Earnings | |||||||||||||||||||
| Income | Republic | per Share | Income | Republic | per Share | |||||||||||||||||||
|
As reported
|
$ | 260.0 | $ | 158.2 | $ | 0.41 | $ | 116.2 | $ | 65.0 | $ | 0.17 | ||||||||||||
|
Loss on extinguishment of debt
|
1.8 | 1.1 | 0.01 | 132.3 | 83.4 | 0.22 | ||||||||||||||||||
|
Costs to achieve synergies
|
— | — | — | 9.1 | 5.5 | 0.01 | ||||||||||||||||||
|
Restructuring charges
|
— | — | — | 5.6 | 3.4 | 0.01 | ||||||||||||||||||
|
(Gain) loss on disposition of assets
and impairments, net
|
(0.4 | ) | 0.4 | — | 0.5 | 0.3 | — | |||||||||||||||||
|
|
||||||||||||||||||||||||
|
Adjusted
|
$ | 261.4 | $ | 159.7 | $ | 0.42 | $ | 263.7 | $ | 157.6 | $ | 0.41 | ||||||||||||
|
|
||||||||||||||||||||||||
| • | We notified the registered holders of our 7.125% Senior Notes due 2016 (the 7.125% Senior Notes) that we will redeem all of the notes outstanding in May 2011. The 7.125% Senior Notes will be redeemed at a price equal to 103.563% of the principal amount, of which $600.0 million is outstanding, plus accrued and unpaid interest. We expect to incur a charge upon extinguishment of the 7.125% Senior Notes of $82.7 million, of which $21.4 million is the cash premium. |
35
| • | Our $1.0 billion revolving credit facility due April 2012 (the Amended and Restated Credit Facility) was amended and restated to increase the borrowing capacity to $1.25 billion and to extend the maturity to April 2016. The Amended and Restated Credit Facility includes a feature that will allow us to increase availability under the Amended and Restated Credit Facility, at our option, by an aggregate amount up to $500 million, through increased commitments from existing lenders or the addition of new lenders. At our option, borrowings under the Amended and Restated 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). The Amended and Restated Credit Facility contains customary affirmative and negative covenants, including, among other things, covenants requiring that we maintain certain financial ratios. We have the ability under the covenants in the Amended and Restated Credit Facility to pay dividends and to repurchase our common stock provided that we are in compliance with the covenants. Substantially all of our subsidiaries guarantee all obligations under the Amended and Restated Credit Facility. | ||
| Contemporaneous with the execution of the Amended and Restated Credit Facility, we entered into Amendment No. 2, to our existing $1.75 billion credit facility (the Existing Credit Facility), to reduce the commitments under the Existing Credit Facility to $1.25 billion and conform certain terms of the Existing Credit Facility with those of the Amended and Restated Credit Facility. Amendment No. 2 does not extend the maturity date under the Existing Credit Facility, which matures in September 2013. Substantially all of our subsidiaries continue to guarantee all obligations under the Existing Credit Facility. | |||
| • | Lastly, we commenced a cash tender offer to purchase during the second quarter of 2011 any and all of our 9.250% Debentures due 2021 (the 9.250% Debentures) and our 7.400% Debentures due 2035 (the 7.400% Debentures) outstanding. The 9.250% Debentures and the 7.400% Debentures will be purchased at a fixed spread pricing formula linked to the yield on a Referenced U.S. Treasury Security, plus accrued and unpaid interest. The actual amount of cash that may be received by a tendering holder will be affected by changes in such yield. We currently have $94.5 million and $360.0 million outstanding on the 9.250% and 7.400% Debentures, respectively. With respect to the Debentures tendered for purchase, we will incur a charge upon extinguishment for premiums paid to repurchase debt, charges for unamortized debt discounts and professional fees paid to effectuate the purchase in the second quarter of 2011. | ||
| We intend to use incremental borrowings under our revolving credit facility and cash on hand to fund the redemption and tender offer. We may also explore capital market opportunities to fund the redemption and tender offer if market conditions are favorable. |
36
| 2011 | 2010 | |||||||||||||||
|
Collection:
|
||||||||||||||||
|
Residential
|
$ | 525.7 | 26.7 | % | $ | 534.7 | 27.3 | % | ||||||||
|
Commercial
|
618.1 | 31.5 | 621.5 | 31.7 | ||||||||||||
|
Industrial
|
353.6 | 18.0 | 348.1 | 17.8 | ||||||||||||
|
Other
|
7.9 | 0.4 | 6.9 | 0.4 | ||||||||||||
|
|
||||||||||||||||
|
Total collection
|
1,505.3 | 76.6 | 1,511.2 | 77.2 | ||||||||||||
|
|
||||||||||||||||
|
Transfer and disposal
|
674.1 | 692.4 | ||||||||||||||
|
Less: Intercompany
|
(344.9 | ) | (357.5 | ) | ||||||||||||
|
|
||||||||||||||||
|
Transfer and disposal, net
|
329.2 | 16.8 | 334.9 | 17.1 | ||||||||||||
|
|
||||||||||||||||
|
Sale of materials
|
97.9 | 5.0 | 71.6 | 3.7 | ||||||||||||
|
Other non-core
|
32.5 | 1.6 | 40.0 | 2.0 | ||||||||||||
|
|
||||||||||||||||
|
Other
|
130.4 | 6.6 | 111.6 | 5.7 | ||||||||||||
|
|
||||||||||||||||
|
Total revenue
|
$ | 1,964.9 | 100.0 | % | $ | 1,957.7 | 100.0 | % | ||||||||
|
|
||||||||||||||||
| • | Price changes based upon fluctuation in a specific index as defined in the contract; |
| • | Fixed price increases based on stated contract terms; or |
| • | Price changes based on a cost plus a specific profit margin or other measurement. |
| 2011 | 2010 | |||||||
|
Core price
|
1.0 | % | 2.2 | % | ||||
|
Fuel surcharges
|
0.6 | 0.3 | ||||||
|
Commodities
|
1.0 | 1.8 | ||||||
|
|
||||||||
|
Total price
|
2.6 | 4.3 | ||||||
|
|
||||||||
|
Volume
|
(0.7 | ) | (7.0 | ) | ||||
|
|
||||||||
|
San Mateo and Toronto contract losses
|
(1.4 | ) | — | |||||
|
|
||||||||
|
|
||||||||
|
Total internal growth
|
0.5 | (2.7 | ) | |||||
|
|
||||||||
|
Acquisitions / divestitures, net
|
(0.1 | ) | (2.3 | ) | ||||
|
|
||||||||
|
Total
|
0.4 | % | (5.0 | )% | ||||
|
|
||||||||
37
| 2011 | 2010 | |||||||||||||||
|
Labor and related benefits
|
$ | 377.3 | 19.2 | % | $ | 375.7 | 19.2 | % | ||||||||
|
Transfer and disposal costs
|
148.8 | 7.6 | 155.5 | 7.9 | ||||||||||||
|
Maintenance and repairs
|
147.4 | 7.5 | 146.4 | 7.5 | ||||||||||||
|
Transportation and subcontract costs
|
98.5 | 5.0 | 113.6 | 5.8 | ||||||||||||
|
Fuel
|
118.3 | 6.0 | 94.7 | 4.8 | ||||||||||||
|
Franchise fees and taxes
|
91.8 | 4.7 | 93.8 | 4.8 | ||||||||||||
|
Landfill operating costs
|
27.9 | 1.4 | 28.3 | 1.4 | ||||||||||||
|
Risk management
|
47.9 | 2.4 | 38.3 | 2.0 | ||||||||||||
|
Cost of goods sold
|
33.2 | 1.7 | 23.2 | 1.2 | ||||||||||||
|
Other
|
68.6 | 3.5 | 67.3 | 3.5 | ||||||||||||
|
|
||||||||||||||||
|
Total cost of operations
|
$ | 1,159.7 | 59.0 | % | $ | 1,136.8 | 58.1 | % | ||||||||
|
|
||||||||||||||||
| • | Average fuel costs per gallon for the three months ended March 31, 2011 were $3.63 versus $2.85 for the comparable 2010 period, an increase of $0.78 or 27%. | ||
| • | Risk management costs increased as we experienced lower favorable actuarial development during the three months ended March 31, 2011 than during the comparable 2010 period. | ||
| • | Cost of goods sold increased primarily as a result of changes in the market prices of commodities for the three months ended March 31, 2011 versus the comparable 2010 period. Average prices for old corrugated cardboard (OCC) for the three months ended March 31, 2011 were $161.85 per ton versus $145.02 per ton for the comparable 2010 period, an increase of $16.83 or 11.6%. Average prices of old newspaper (ONP) for the three months ended March 31, 2011 were $146.87 per ton versus $103.32 per ton for the comparable 2010 period, an increase of $43.55 per ton or 42.2%. |
| • | Transportation and subcontract costs decreased during the three months ended March 31, 2011 versus the comparable 2010 period primarily due to the loss of transportation and disposal contract with the City of Toronto. |
38
| 2011 | 2010 | |||||||||||||||
|
Depreciation and amortization of
property and equipment
|
$ | 127.5 | 6.5 | % | $ | 129.0 | 6.6 | % | ||||||||
|
Landfill depletion and amortization
|
59.6 | 3.0 | 56.4 | 2.9 | ||||||||||||
|
|
||||||||||||||||
|
Depreciation, amortization and
depletion expense
|
$ | 187.1 | 9.5 | % | $ | 185.4 | 9.5 | % | ||||||||
|
|
||||||||||||||||
| 2011 | 2010 | |||||||||||||||
|
Salaries
|
$ | 135.7 | 6.9 | % | $ | 133.8 | 6.8 | % | ||||||||
|
Provision for doubtful
accounts
|
0.4 | — | 2.5 | 0.1 | ||||||||||||
|
Costs to achieve synergies
|
— | — | 9.1 | 0.5 | ||||||||||||
|
Other
|
67.8 | 3.5 | 64.9 | 3.3 | ||||||||||||
|
|
||||||||||||||||
|
Total selling, general and
administrative expenses
|
$ | 203.9 | 10.4 | % | $ | 210.3 | 10.7 | % | ||||||||
|
|
||||||||||||||||
39
| 2011 | 2010 | |||||||
|
Interest expense on debt and capital lease obligations
|
$ | 94.7 | $ | 107.0 | ||||
|
Accretion of debt discounts
|
10.1 | 16.2 | ||||||
|
Accretion of remediation and risk reserves
|
12.1 | 12.2 | ||||||
|
Less: capitalized interest
|
(1.2 | ) | (0.9 | ) | ||||
|
|
||||||||
|
Total interest expense
|
$ | 115.7 | $ | 134.5 | ||||
|
|
||||||||
40
| Expected | ||||||||
| Amortization | ||||||||
| Remaining | Over the Next | |||||||
| Discount | Twelve Months | |||||||
|
$275.0 million 6.375% senior notes due April 2011
|
$ | 0.3 | $ | 0.3 | ||||
|
$600.0 million 7.125% senior notes due May 2016
|
62.1 | 9.9 | ||||||
|
$750.0 million 6.875% senior notes due June 2017
|
83.5 | 10.6 | ||||||
|
$99.5 million 9.250% debentures due May 2021
|
5.7 | 0.4 | ||||||
|
$360.0 million 7.400% debentures due September 2035
|
92.2 | 0.9 | ||||||
|
Other, maturing 2014 through 2018
|
21.2 | 2.7 | ||||||
|
|
||||||||
|
|
||||||||
|
Total
|
$ | 265.0 | $ | 24.8 | ||||
|
|
||||||||
41
| Gain (Loss) on | ||||||||||||||||||||
| Depreciation, | Disposition of | |||||||||||||||||||
| Amortization, | Assets, Net | Operating | ||||||||||||||||||
| Net | Depletion and | and Asset | Income | Operating | ||||||||||||||||
| Revenue | Accretion | Impairment | (Loss) | Margin | ||||||||||||||||
|
Three Months
Ended March
31, 2011:
|
||||||||||||||||||||
|
Eastern
|
$ | 501.4 | $ | 51.4 | $ | (0.9 | ) | $ | 117.7 | 23.5 | % | |||||||||
|
Midwestern
|
418.9 | 51.5 | (0.5 | ) | 80.4 | 19.2 | ||||||||||||||
|
Southern
|
494.7 | 54.8 | (0.1 | ) | 119.4 | 24.1 | ||||||||||||||
|
Western
|
528.8 | 55.3 | 1.6 | 123.0 | 23.3 | |||||||||||||||
|
Corporate entities
|
21.1 | 12.5 | 0.3 | (64.3 | ) | — | ||||||||||||||
|
|
||||||||||||||||||||
|
Total
|
$ | 1,964.9 | $ | 225.5 | $ | 0.4 | $ | 376.2 | 19.1 | % | ||||||||||
|
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
Three Months
Ended
March 31, 2010:
|
||||||||||||||||||||
|
Eastern
|
$ | 502.1 | $ | 51.6 | $ | (0.4 | ) | $ | 128.2 | 25.5 | % | |||||||||
|
Midwestern
|
414.8 | 51.9 | — | 88.7 | 21.4 | |||||||||||||||
|
Southern
|
489.6 | 57.6 | — | 120.5 | 24.6 | |||||||||||||||
|
Western
|
525.8 | 49.5 | (0.1 | ) | 130.6 | 24.8 | ||||||||||||||
|
Corporate entities
|
25.4 | 12.6 | — | (86.7 | ) | — | ||||||||||||||
|
|
||||||||||||||||||||
|
Total
|
$ | 1,957.7 | $ | 223.2 | $ | (0.5 | ) | $ | 381.3 | 19.5 | % | |||||||||
|
|
||||||||||||||||||||
42
| Balance | Landfills | Permits | Balance | |||||||||||||||||
| as of | Acquired, | Granted, | as of | |||||||||||||||||
| December 31, | Net of | Net of | Airspace | March 31, | ||||||||||||||||
| 2010 | Divestitures | Closures | Consumed | 2011 | ||||||||||||||||
|
Cubic yards (in millions):
|
||||||||||||||||||||
|
Permitted airspace
|
4,595.5 | 8.5 | 9.8 | (18.3 | ) | 4,595.5 | ||||||||||||||
|
Probable expansion airspace
|
149.1 | — | — | — | 149.1 | |||||||||||||||
|
|
||||||||||||||||||||
|
Total cubic yards (in millions)
|
4,744.6 | 8.5 | 9.8 | (18.3 | ) | 4,744.6 | ||||||||||||||
|
|
||||||||||||||||||||
|
Number of sites:
|
||||||||||||||||||||
|
Permitted airspace
|
193 | 2 | — | 195 | ||||||||||||||||
|
|
||||||||||||||||||||
|
Probable expansion airspace
|
8 | — | — | 8 | ||||||||||||||||
|
|
||||||||||||||||||||
43
44
| Non-cash | Adjustments | |||||||||||||||||||||||||||
| Balance | Additions | Transfers | for | Balance | ||||||||||||||||||||||||
| as of | Acquisitions | for Asset | and | Asset | as of | |||||||||||||||||||||||
| December 31, | Capital | Net of | Retirement | Other | Retirement | March 31, | ||||||||||||||||||||||
| 2010 | Additions | Divestitures | Obligations | Adjustments | Obligations | 2011 | ||||||||||||||||||||||
|
Non-depletable landfill
land
|
$ | 158.0 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 158.0 | ||||||||||||||
|
Landfill development
costs
|
4,575.2 | 0.2 | 9.4 | 7.6 | 47.7 | (1.6 | ) | 4,638.5 | ||||||||||||||||||||
|
Construction-in-progress
- landfill
|
133.2 | 32.2 | — | — | (48.8 | ) | — | 116.6 | ||||||||||||||||||||
|
Accumulated depletion and
amortization
|
(1,504.6 | ) | (59.8 | ) | — | — | — | 0.1 | (1,564.3 | ) | ||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
Net investment in
landfill land and
development costs
|
$ | 3,361.8 | $ | (27.4 | ) | $ | 9.4 | $ | 7.6 | $ | (1.1 | ) | $ | (1.5 | ) | $ | 3,348.8 | |||||||||||
|
|
||||||||||||||||||||||||||||
| Balance | ||||||||||||
| as of | Expected | Total | ||||||||||
| March 31, | Future | Expected | ||||||||||
| 2011 | Investment | Investment | ||||||||||
|
Non-depletable landfill land
|
$ | 158.0 | $ | — | $ | 158.0 | ||||||
|
Landfill development costs
|
4,638.5 | 6,373.3 | 11,011.8 | |||||||||
|
Construction-in-progress landfill
|
116.6 | — | 116.6 | |||||||||
|
Accumulated depletion and amortization
|
(1,564.3 | ) | — | (1,564.3 | ) | |||||||
|
|
||||||||||||
|
Net investment in landfill land and development costs
|
$ | 3,348.8 | $ | 6,373.3 | $ | 9,722.1 | ||||||
|
|
||||||||||||
| 2011 | 2010 | |||||||
|
Number of landfills owned or operated
|
195 | 190 | ||||||
|
|
||||||||
|
Net investment, excluding non-depletable land (in millions)
|
$ | 3,190.8 | $ | 3,160.5 | ||||
|
Total estimated available disposal capacity (in millions of cubic yards)
|
4,744.6 | 4,655.6 | ||||||
|
|
||||||||
|
Net investment per cubic yard
|
$ | 0.67 | $ | 0.68 | ||||
|
|
||||||||
|
|
||||||||
|
Landfill depletion and amortization expense (in millions)
|
$ | 59.6 | $ | 56.4 | ||||
|
Accretion expense (in millions)
|
19.7 | 20.2 | ||||||
|
|
||||||||
|
|
$ | 79.3 | $ | 76.6 | ||||
|
|
||||||||
|
Airspace consumed (in millions of cubic yards)
|
18.3 | 19.3 | ||||||
|
|
||||||||
|
Depletion, amortization and accretion expense per cubic yard of airspace consumed
|
$ | 4.33 | $ | 3.97 | ||||
|
|
||||||||
45
| Allowance for | Final Capping, | |||||||||||||||
| Doubtful | Closure and | Self- | ||||||||||||||
| Accounts | Post-Closure | Remediation | Insurance | |||||||||||||
|
Balance, December 31, 2010
|
$ | 50.9 | $ | 1,046.5 | $ | 552.1 | $ | 417.2 | ||||||||
|
Non-cash additions
|
— | 7.6 | — | — | ||||||||||||
|
Acquisition and other adjustments
|
— | 2.7 | — | — | ||||||||||||
|
Asset retirement obligation adjustments
|
— | (1.6 | ) | — | — | |||||||||||
|
Accretion expense
|
— | 19.7 | 8.3 | 1.5 | ||||||||||||
|
Additions charged to expense
|
0.4 | — | — | 102.0 | ||||||||||||
|
Payments or usage
|
(5.9 | ) | (13.2 | ) | (8.5 | ) | (94.4 | ) | ||||||||
|
|
||||||||||||||||
|
Balance, March 31, 2011
|
45.4 | 1,061.7 | 551.9 | 426.3 | ||||||||||||
|
Less: Current portion
|
(45.4 | ) | (92.9 | ) | (87.1 | ) | (114.3 | ) | ||||||||
|
|
||||||||||||||||
|
Long-term portion
|
$ | — | $ | 968.8 | $ | 464.8 | $ | 312.0 | ||||||||
|
|
||||||||||||||||
| Allowance for | Final Capping, | |||||||||||||||
| Doubtful | Closure and | Self- | ||||||||||||||
| Accounts | Post-Closure | Remediation | Insurance | |||||||||||||
|
Balance, December 31, 2009
|
$ | 55.2 | $ | 1,074.5 | $ | 554.1 | $ | 412.9 | ||||||||
|
Non-cash additions
|
— | 7.2 | — | — | ||||||||||||
|
Acquisition and other adjustments
|
— | 0.5 | 1.5 | — | ||||||||||||
|
Accretion expense
|
— | (5.4 | ) | — | — | |||||||||||
|
Additions charged to expense
|
— | 20.2 | 7.3 | 2.1 | ||||||||||||
|
Transfers to assets held for sale
|
2.5 | — | 2.3 | 86.3 | ||||||||||||
|
Payments or usage
|
(5.0 | ) | (10.5 | ) | (11.5 | ) | (87.5 | ) | ||||||||
|
|
||||||||||||||||
|
Balance, March 31, 2010
|
52.7 | 1,086.5 | 553.7 | 413.8 | ||||||||||||
|
Less: Current portion
|
(52.7 | ) | (135.7 | ) | (105.3 | ) | (113.5 | ) | ||||||||
|
|
||||||||||||||||
|
Long-term portion
|
$ | — | $ | 950.8 | $ | 448.4 | $ | 300.3 | ||||||||
|
|
||||||||||||||||
| Gross Property and Equipment | ||||||||||||||||||||||||||||||||
| Non-Cash | Adjustments | Impairments, | ||||||||||||||||||||||||||||||
| Balance | Additions | for | Transfers | Balance | ||||||||||||||||||||||||||||
| as of | Acquisitions, | for Asset | Asset | and | as of | |||||||||||||||||||||||||||
| December 31, | Capital | Net of | Retirement | Retirement | Other | March 31, | ||||||||||||||||||||||||||
| 2010 | Additions | Retirements | Divestitures | Obligations | Obligations | Adjustments | 2011 | |||||||||||||||||||||||||
|
Other land
|
$ | 391.9 | $ | — | $ | (0.4 | ) | $ | 0.3 | $ | — | $ | — | $ | — | $ | 391.8 | |||||||||||||||
|
Non-depletable landfill
land
|
158.0 | — | — | — | — | — | — | 158.0 | ||||||||||||||||||||||||
|
Landfill development
costs
|
4,575.2 | 0.2 | — | 9.4 | 7.6 | (1.6 | ) | 47.7 | 4,638.5 | |||||||||||||||||||||||
|
Vehicles and equipment
|
4,142.1 | 131.6 | (25.9 | ) | (1.8 | ) | — | — | (0.4 | ) | 4,245.6 | |||||||||||||||||||||
|
Buildings and
improvements
|
768.5 | 0.8 | — | 2.4 | — | — | 7.4 | 779.1 | ||||||||||||||||||||||||
|
Construction-in-progress
- landfill
|
133.2 | 32.2 | — | — | — | — | (48.8 | ) | 116.6 | |||||||||||||||||||||||
|
Construction-in-progress
- other
|
27.2 | 4.2 | — | — | — | — | (7.4 | ) | 24.0 | |||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
Total
|
$ | 10,196.1 | $ | 169.0 | $ | (26.3 | ) | $ | 10.3 | $ | 7.6 | $ | (1.6 | ) | $ | (1.5 | ) | $ | 10,353.6 | |||||||||||||
|
|
||||||||||||||||||||||||||||||||
46
| Accumulated Depreciation, Amortization and Depletion | ||||||||||||||||||||||||
| Adjustments | ||||||||||||||||||||||||
| Balance | Additions | for | Balance | |||||||||||||||||||||
| as of | Charged | Acquisitions, | Asset | as of | ||||||||||||||||||||
| December 31, | to | Net of | Retirement | March 31, | ||||||||||||||||||||
| 2010 | Expense | Retirements | Divestitures | Obligations | 2011 | |||||||||||||||||||
|
Landfill
development costs
|
$ | (1,504.6 | ) | $ | (59.8 | ) | $ | — | $ | — | $ | 0.1 | $ | (1,564.3 | ) | |||||||||
|
Vehicles and
equipment
|
(1,820.6 | ) | (119.8 | ) | 22.4 | 3.5 | — | (1,914.5 | ) | |||||||||||||||
|
Buildings and
improvements
|
(172.4 | ) | (8.8 | ) | — | — | — | (181.2 | ) | |||||||||||||||
|
|
||||||||||||||||||||||||
|
Total
|
$ | (3,497.6 | ) | $ | (188.4 | ) | $ | 22.4 | $ | 3.5 | $ | 0.1 | $ | (3,660.0 | ) | |||||||||
|
|
||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
|
Net cash provided by operating activities
|
$ | 433.7 | $ | 299.1 | ||||
|
Net cash used in investing activities
|
(294.3 | ) | (184.1 | ) | ||||
|
Net cash used in financing activities
|
(159.8 | ) | (81.6 | ) | ||||
| • | During the three months ended March 31, 2011 we received a net income tax refund of $49.8 million primarily due to the December 2010 tax law change for bonus depreciation. During the three month ended March 31, 2010 we paid $60.1 million related to the settlement of certain tax liabilities regarding BFI risk management companies. | ||
| • | Cash paid for interest was $8.9 million lower during the three months ended March 31, 2011 than the comparable prior-year period primarily due to refinancing our higher interest rate debt in the second half of 2009 and the first quarter of 2010 and the timing of interest payments. |
47
48
49
| 2011 | 2010 | |||||||
|
Cash provided by operating activities
|
$ | 433.7 | $ | 299.1 | ||||
|
Purchases of property and equipment
|
(297.2 | ) | (208.4 | ) | ||||
|
Proceeds from sales of property and equipment
|
6.9 | 5.9 | ||||||
|
|
||||||||
|
Free cash flow
|
$ | 143.4 | $ | 96.6 | ||||
|
|
||||||||
| 2011 | 2010 | |||||||
|
Purchases of property and equipment per the unaudited
consolidated statements of cash flows
|
$ | 297.2 | $ | 208.4 | ||||
|
Adjustments for property and equipment received during the
prior period but paid for in the following period, net
|
(128.2 | ) | (80.1 | ) | ||||
|
|
||||||||
|
Property and equipment received during the period
|
$ | 169.0 | $ | 128.3 | ||||
|
|
||||||||
50
| • | the impact on us of our substantial indebtedness, including on our ability to obtain financing on acceptable terms to finance our operations and growth strategy and to operate within the limitations imposed by financing arrangements; | ||
| • | general economic and market conditions, including the current global economic and financial market crisis, inflation and changes in commodity pricing, fuel, labor, risk and health insurance and other variable costs that are generally not within our control, and our exposure to credit and counterparty risk; | ||
| • | whether our estimates and assumptions concerning our selected balance sheet accounts, income tax accounts, final capping, closure, post-closure and remediation costs, available airspace, and projected costs and expenses related to our landfills and property and equipment (including our estimates of the fair values of the assets and liabilities acquired in our acquisition of Allied), and labor, fuel rates and economic and inflationary trends, turn out to be correct or appropriate; | ||
| • | competition and demand for services in the solid waste industry; | ||
| • | the fact that 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; |
51
| • | our ability to manage growth and execute our growth strategy; | ||
| • | our compliance with, and future changes in, environmental and flow control regulations and our ability to obtain approvals from regulatory agencies in connection with operating and expanding our landfills; | ||
| • | our ability to retain our investment grade ratings for our debt; | ||
| • | our dependence on key personnel; | ||
| • | our dependence on large, long-term collection, transfer and disposal contracts; | ||
| • | our business is capital intensive and may consume cash in excess of cash flow from operations; | ||
| • | any exposure to environmental liabilities, to the extent not adequately covered by insurance, could result in substantial expenses; | ||
| • | risks associated with undisclosed liabilities of acquired businesses; | ||
| • | risks associated with pending and future legal proceedings, including litigation, audits or investigations brought by or before any governmental body; | ||
| • | severe weather conditions, which could impair our financial results by causing increased costs, loss of revenue, reduced operational efficiency or disruptions to our operations; | ||
| • | compliance with existing and future legal and regulatory requirements, including limitations or bans on disposal of certain types of wastes or on the transportation of waste, which could limit our ability to conduct or grow our business, increase our costs to operate or require additional capital expenditures; | ||
| • | workforce factors, including potential increases in our costs if we are required to provide additional funding to any multi-employer pension plan to which we contribute and the negative impact on our operations of union organizing campaigns, work stoppages or labor shortages; | ||
| • | the negative effect that trends toward requiring recycling, waste reduction at the source and prohibiting the disposal of certain types of wastes could have on volumes of waste going to landfills; | ||
| • | changes by the Financial Accounting Standards Board or other accounting regulatory bodies to generally accepted accounting principles or policies; and | ||
| • | acts of war, riots or terrorism, including the events taking place in the Middle East and the continuing war on 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. |
52
53
54
55
56
57
| Total Number of | Approximate Dollar | |||||||||||||||
| Total Number of | Shares Purchased as | Value of Shares that | ||||||||||||||
| Shares (or Units) | Average Price Paid | Part of Publicly | May Yet Be Purchased | |||||||||||||
| Purchased (a) | per Share (a) | Announced Program (b) | Under the Program (c) | |||||||||||||
|
January
|
16,189 | $ | 29.86 | — | $ | 358,860,447 | ||||||||||
|
February
|
1,905,213 | 29.75 | 1,905,213 | $ | 302,171,850 | |||||||||||
|
March
|
3,094,792 | 29.31 | 3,093,481 | $ | 211,506,760 | |||||||||||
|
|
||||||||||||||||
|
|
5,016,194 | $ | 29.48 | 4,998,694 | ||||||||||||
|
|
||||||||||||||||
| (a) | Our board of directors has approved a share repurchase program pursuant to which we may repurchase up to $400.0 million of our outstanding shares of common stock through December 31, 2011 (the 2010 Program). The 2010 Program was publicly announced on November 4, 2010. Share repurchases under the 2010 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 2010 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 2010 Program may be extended, suspended or discontinued at any time. | |
| (b) | The total number of shares purchased during the first quarter of 2011 includes: (i) 4,998,694 shares of common stock purchased pursuant to the 2010 Program; and (ii) 17,500 shares of common stock surrendered to satisfy statutory minimum tax withholding obligations in connection with the vesting of restricted stock issued to employees. We expect to continue to satisfy minimum tax withholding obligations in connection with the vesting of outstanding restricted stock through the withholding of shares. | |
| (c) | Shares that may be purchased under the program excludes 17,500 shares of common stock surrendered to satisfy statutory minimum tax withholding obligations in connection with the vesting of restricted stock issued to employees. |
| 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 |
58
| * | 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. |
59
|
REPUBLIC SERVICES, INC.
|
||||
| Date: April 28, 2011 | By: | /s/ TOD C. HOLMES | ||
| Tod C. Holmes | ||||
|
Executive Vice President and
Chief Financial Officer (Principal Financial Officer) |
||||
| Date: April 28, 2011 | By: | /s/ CHARLES F. SERIANNI | ||
| Charles F. Serianni | ||||
|
Senior Vice President and
Chief Accounting Officer (Principal Accounting Officer) |
||||
60
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|