What changed in this filing

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Item 1. Financial Statements

2022-05-06 compared with 2021-10-29 · 204 added, 334 removed, 611 unchanged (47% of the section changed)

3 unchanged sentences

(in millions, except per share data)

September 30, December 31,

March 31, December 31,

Current assets:

46 unchanged sentences

(in millions, except per share data)

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Three Months Ended March 31,

Revenue $ 2,968.8 $ 2,595.9

3 unchanged sentences

Selling, general and administrative 307.8 265.4

Withdrawal costs - multiemployer pension funds

Loss (gain) on business divestitures and impairments, net — 31.5 ( 0.2 ) 32.9

Gain on business divestitures and impairments, net — ( 1.1 )

Restructuring charges 6.0 2.8

2 unchanged sentences

Loss from unconsolidated equity method investments ( 3.8 ) ( 16.5 )

Loss on extinguishment of debt — ( 34.5 ) — ( 34.5 )

Interest income 0.5 0.8

3 unchanged sentences

Net income 351.9 296.4

Net income attributable to non-controlling interests in consolidated subsidiary

( 0.5 ) ( 0.2 ) ( 1.9 ) ( 1.5 )

Net (income) loss attributable to non-controlling interests in consolidated subsidiary

Net income attributable to Republic Services, Inc.

8 unchanged sentences

Weighted average common and common equivalent shares outstanding

319.4 319.7 319.7 319.8

Cash dividends per common share $ 0.460 $ 0.425

3 unchanged sentences

(in millions)

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Three Months Ended March 31,

Net income $ 351.9 $ 296.4

2 unchanged sentences

Realized loss reclassified into earnings 1.1 1.1

Unrealized loss — ( 0.2 ) — ( 22.5 )

Pension activity:

Change in funded status of pension plan obligations

— — ( 0.7 ) 1.6

Other comprehensive income (loss), net of tax 1.2 1.0 2.8 ( 17.7 )

Other comprehensive income, net of tax 1.1 1.1

Comprehensive income 353.0 297.5

Comprehensive income attributable to non-controlling interests ( 0.5 ) ( 0.2 ) ( 1.9 ) ( 1.5 )

Comprehensive loss (income) attributable to non-controlling interests 0.1 ( 0.5 )

Comprehensive income attributable to Republic Services, Inc.

6 unchanged sentences

Stockholders’ Equity

Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive (Loss) Income, Net of Tax Non-controlling

Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss, Net of Tax Non-controlling

Interests In Consolidated Subsidiary

2 unchanged sentences

319.6 $ 3.2 $ 2,789.5 $ 6,475.6 ( 2.4 ) $ ( 274.8 ) $ ( 14.6 ) $ 0.8 $ 8,979.7

Net income — — — 295.9 — — — 0.5 296.4

Other comprehensive income — — — — — — 1.1 — 1.1

Net income (loss) — — — 352.0 — — — ( 0.1 ) 351.9

Other comprehensive loss — — — — — — 1.1 — 1.1

Cash dividends declared — — — ( 145.3 ) — — — — ( 145.3 )

4 unchanged sentences

319.9 $ 3.2 $ 2,805.3 $ 6,681.4 ( 4.1 ) $ ( 492.4 ) $ ( 13.5 ) $ 0.7 $ 8,984.7

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

Net income — — — 350.3 — — — 0.5 350.8

Other comprehensive income — — — — — — 1.2 — 1.2

Cash dividends declared — — — ( 146.1 ) — — — — ( 146.1 )

Issuances of common stock — — 2.5 — — ( 0.2 ) — — 2.3

Stock-based compensation — — 11.4 ( 0.8 ) — — — — 10.6

Purchase of common stock for treasury

— — — — ( 1.2 ) ( 123.3 ) — — ( 123.3 )

Balance as of September 30, 2021

319.4 $ 3.2 $ 2,801.0 $ 6,309.4 ( 1.8 ) $ ( 230.7 ) $ ( 9.6 ) $ 5.6 $ 8,878.9

The accompanying notes are an integral part of these statements.

Republic Services, Inc.

UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - (CONTINUED)

(in millions)

Republic Services, Inc.

Stockholders’ Equity

Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive (Loss) Income, Net of Tax Non-controlling

Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss, Net of Tax Non-controlling

Interests In Consolidated Subsidiary

8 unchanged sentences

Purchase of common stock for treasury — — — — ( 0.1 ) ( 12.7 ) — — ( 12.7 )

Distributions paid — — — — — — — ( 0.2 ) ( 0.2 )

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 — — — 225.5 — — — 0.8 226.3

Other comprehensive income — — — — — — 1.1 — 1.1

Cash dividends declared — — — ( 129.0 ) — — — — ( 129.0 )

Issuances of common stock 0.1 — 3.1 — — ( 0.3 ) — — 2.8

Stock-based compensation — — 10.4 ( 0.9 ) — — — — 9.5

Balance as of June 30, 2020

354.1 3.5 5,026.6 5,529.2 ( 35.9 ) ( 2,315.7 ) ( 16.5 ) 3.8 8,230.9

Net income — — — 260.0 — — — 0.2 260.2

Other comprehensive loss — — — — — — 1.0 — 1.0

Cash dividends declared — — — ( 135.4 ) — — — — ( 135.4 )

Issuances of common stock 0.3 — 8.1 — — ( 0.1 ) — — 8.0

Stock-based compensation — — 10.4 ( 1.0 ) — — — — 9.4

Balance as of September 30, 2020

354.4 $ 3.5 $ 5,045.1 $ 5,652.8 ( 35.9 ) $ ( 2,315.8 ) $ ( 15.5 ) $ 4.0 $ 8,374.1

The accompanying notes are an integral part of these statements.

2 unchanged sentences

(in millions)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash provided by operating activities:

4 unchanged sentences

Stock-based compensation 12.4 12.6

Deferred tax provision (benefit) ( 32.8 ) 45.7

Deferred tax provision 24.9 15.3

Provision for doubtful accounts, net of adjustments 6.6 4.3

Loss on extinguishment of debt — 34.5

Loss on disposition of assets and asset impairments, net 0.5 30.6

Withdrawal costs - multiemployer pension funds, net of payments — 4.3

Gain on disposition of assets and asset impairments, net ( 1.7 ) ( 0.6 )

Environmental adjustments — ( 1.5 )

8 unchanged sentences

Other liabilities ( 118.9 ) ( 61.4 )

Payments for retirement of certain hedging relationships — ( 11.4 )

Cash provided by operating activities 705.6 661.0

8 unchanged sentences

Cash used in investing activities ( 399.4 ) ( 344.6 )

Cash (used in) provided by financing activities:

Cash provided by (used in) financing activities:

Proceeds from notes payable and long-term debt, net of fees 638.9 1,242.4

Proceeds from issuance of senior notes, net of discount and fees — 1,626.6

Payments of notes payable and long-term debt and senior notes ( 590.9 ) ( 1,422.5 )

Premiums paid on extinguishment of debt — ( 34.0 )

Issuances of common stock, net ( 11.5 ) ( 12.3 )

1 unchanged sentence

Cash dividends paid ( 145.9 ) ( 135.5 )

Distributions paid to non-controlling interests in consolidated subsidiary ( 1.2 ) ( 0.2 )

Contingent consideration payments ( 1.8 ) ( 1.7 )

Cash used in financing activities ( 314.7 ) ( 342.3 )

Increase in cash, cash equivalents, restricted cash and restricted cash equivalents 8.7 311.8

Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents ( 8.5 ) ( 25.9 )

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year 105.6 114.2

29 unchanged sentences

Our actual results may differ significantly from our estimates.

In March 2020, the World Health Organization declared the outbreak of a new strain of coronavirus (COVID-19) a pandemic.

The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and created significant volatility and disruption of financial markets.

The full extent of the impact of the COVID-19 pandemic on our operations and financial performance will depend on future developments, including the duration and spread of the pandemic and the impact of COVID-19 variants, all of which are uncertain and cannot be predicted at this time.

In mid-March 2020, certain customers in our small- and large-container businesses began adjusting their service levels, which included a decrease in the frequency of pickups or a temporary pause in service.

In addition, we experienced a decline in volumes disposed at certain of our landfills and transfer stations.

As service levels decreased, we also experienced a decrease in certain costs of our operations which are variable in nature.

This decline in service activity peaked in the first half of April 2020 and improved sequentially through September 30, 2021.

In April 2020, we launched our Committed to Serve initiative and committed $ 20 million to support frontline employees and their families, as well as small business customers in the local communities we serve.

In addition to this initiative, we have experienced an increase in certain costs of doing business as a direct result of the COVID-19 pandemic, including costs for additional safety equipment and hygiene products and increased facility and equipment cleaning.

These costs are intended to assist in protecting the safety of our frontline employees as we continue to provide an essential service to our customers.

In December 2020, we recognized our frontline employees for their commitment and contributions to their communities during

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

the pandemic with a $ 500 award that was paid in January 2021.

In addition, we incurred incremental costs associated with expanding certain aspects of our existing healthcare programs.

New Accounting Pronouncements

Accounting Standards Adopted

Effective January 1, 2021, we adopted the following accounting standards updates (ASUs) as issued by the Financial Accounting Standards Board (FASB):

ASU Effective Date

ASU 2018-14 Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans

January 1, 2021

ASU 2019-12 Simplifying the Accounting for Income Taxes

January 1, 2021

Changes to the Disclosure Requirements for Defined Benefit Plans

Effective January 1, 2021, we adopted ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans (ASU 2018-14) on a retrospective basis.

The standard removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant.

Our adoption of ASU 2018-14 did not have a material impact on our consolidated financial statements.

Simplifying the Accounting for Income Taxes

Effective January 1, 2021, we adopted ASU 2019-12, Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes (ASU 2019-12).

ASU 2019-12 attempts to simplify aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill.

Our adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements.

Accounting Standards Updates Issued but not yet Adopted

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference

Rate Reform on Financial Reporting (ASU 2020-04).

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.

ASU 2020-04 is effective for all entities upon adoption during the period from March 12, 2020 through December 31, 2022.

We are currently assessing the effect this guidance may have on our consolidated financial statements.

As of March 31, 2022, we have not modified any contracts as a result of reference rate reform and are evaluating the impact this standard may have on our consolidated financial statements.

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

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

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.

BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES

We acquired various environmental services businesses during the nine months ended September 30, 2021 and 2020.

We acquired various environmental services businesses during the three months ended March 31, 2022 and 2021.

The purchase price paid for these business acquisitions and the allocations of the purchase price follows:

Purchase price:

Cash used in acquisitions, net of cash acquired of $ 12.6 and $ — , respectively

Cash used in acquisitions, net of cash acquired

$ 42.9 $ 15.8

Fair value, future minimum finance lease payments

Total $ 47.6 $ 17.8

Allocated as follows:

Restricted cash

Accounts receivable

Landfill development costs

Property and equipment

Operating right-of-use lease assets

Assets held for sale

Accounts payable

( 29.3 ) ( 1.2 )

Environmental remediation liabilities

( 25.6 ) ( 1.7 )

Closure and post-closure liabilities

( 32.2 ) ( 0.7 )

Operating right-of-use lease liabilities

( 7.1 ) ( 0.2 )

Other liabilities

8 unchanged sentences

Substantially all of the goodwill and intangible assets recorded for these acquisitions are deductible for tax purposes.

On May 5, 2021, we acquired all of the membership interests of Santek Waste Services, LLC (Santek).

Santek's vertically integrated recycling and waste services operations are primarily located in the southeastern United States and complement Republic's existing core competencies and expertise in the environmental services industry.

The purchase price allocation is preliminary and remains subject to revision 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 assigned to 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 expect our valuations to be substantially completed by the end of 2021.

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 shares 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 through the entry into a $ 1.0 billion unsecured Term Loan Credit Agreement (Term Loan Facility), and the remaining purchase price was funded using borrowings on our $ 3.0 billion unsecured revolving credit facility.

For further discussion of the borrowings used to fund the purchase, refer to Note 7, Debt, in Part I, Item 1 of this Quarterly Report on Form 10-Q.

In August 2021, we acquired all of the issued and outstanding shares of ACV Enviro Corporation (ACV).

ACV’s environmental solutions operations are primarily located in the northeastern United States and provide us with a platform to pursue additional growth in our environmental solutions line of business.

The purchase price allocation is preliminary 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, is based on the best estimates of management and is subject to revision based on the final valuations.

We expect our valuations to be completed in the third quarter of 2022.

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 $ 30.7 million and $ 56.7 million, which were recorded to other assets in our September 30, 2021 and 2020 consolidated balance sheets, respectively.

During the three and nine months ended September 30, 2021, we reduced the

In exchange for our non-controlling interests, we made capital contributions of $ 11.0 million and $ 2.2 million, which were recorded to other assets in our March 31, 2022 and 2021 consolidated balance sheets, respectively.

During the three months ended March 31, 2022 and 2021, we reduced the carrying value of these investments by $ 0.4 million and $ 13.7 million, respectively, as a result of cash distributions and our share of

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

carrying value of these investments by $ 10.0 million and $ 35.7 million, respectively, and during the three and nine months ended September 30, 2020, we reduced the carrying value of these investments by $ 8.2 million and $ 30.8 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 benefit of approximately $ 20 million for the nine months ended September 30, 2021 due to the tax credits related to these investments.

There was no tax benefit reflected due to these tax credits for the three months ended September 30, 2021.

Our tax provisions reflect a similar benefit of approximately $ 16 million and $ 25 million for the three and nine months ended September 30, 2020, respectively.

income and loss pursuant to the terms of the limited liability company agreements.

Additionally, our tax provisions reflect a benefit of approximately $ 1.2 million for the three months ended March 31, 2022 due to the tax credits related to these investments.

There was no similar benefit for the three months ended March 31, 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

In 2020, we incurred costs related to the redesign of certain back-office software systems, which continued into 2021.

In addition, in July 2020, we eliminated certain back-office support positions in response to a decline in the underlying demand for services resulting from the COVID-19 pandemic.

During the three and nine months ended September 30, 2021, we incurred restructuring charges of $ 4.6 million and $ 11.2 million, respectively, and during the three and nine months ended September 30, 2020, we incurred restructuring charges of $ 9.8 million and $ 15.8 million, respectively.

During the nine months ended September 30, 2021 and 2020, we paid $ 12.1 million and $ 11.9 million, respectively, related to these restructuring efforts.

During the remainder of 2021, we expect to incur additional restructuring charges of approximately $ 5 million primarily related to the redesign of certain of our back-office software systems.

Substantially all of these restructuring charges will be recorded in Corporate entities and other.

During the three months ended March 31, 2022 and 2021, we incurred restructuring charges of $ 6.0 million and $ 2.8 million, respectively, related to the redesign of certain back-office software systems.

During the same periods, we paid $ 5.9 million and $ 4.0 million, respectively, related to these restructuring efforts.

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

1 unchanged sentence

Balance as of December 31, 2021

Acquisitions Divestitures Adjustments to Acquisitions Balance as of September 30, 2021

Acquisitions Divestitures Adjustments to Acquisitions Balance as of March 31, 2022

Group 1 $ 6,549.7 $ 0.6 $ — $ ( 1.7 ) $ 6,548.6

2 unchanged sentences

Total $ 12,826.0 $ 25.6 $ — $ ( 18.9 ) $ 12,832.7

Adjustments to acquisitions during the nine months ended September 30, 2021 primarily related to changes in our valuation of customer relationship intangible assets as a result of obtaining new information regarding the acquisitions that closed in December 2020.

Adjustments to acquisitions during the three months ended March 31, 2022 primarily related to changes in our valuation of fixed assets as a result of obtaining new information regarding the acquisitions that closed in 2021.

Other Intangible Assets, Net

3 unchanged sentences

Balance as of December 31, 2021 Acquisitions Adjustments

Balance as of September 30, 2021 Balance as of December 31, 2020 Additions Charged to Expense Adjustments

Balance as of September 30, 2021 Other Intangible Assets, Net as of September 30, 2021

Balance as of March 31, 2022 Balance as of December 31, 2021 Additions Charged to Expense Adjustments

Balance as of March 31, 2022 Other Intangible Assets, Net as of March 31, 2022

Customer relationships

5 unchanged sentences

Total $ 1,016.8 $ 8.5 $ — $ 1,025.3 $ ( 757.3 ) $ ( 10.0 ) $ — $ ( 767.3 ) $ 258.0

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Prepaid Expenses and Other Current Assets

A summary of prepaid expenses and other current assets as of September 30, 2021 and December 31, 2020 follows:

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

Income taxes receivable $ 89.9 $ 173.8

Prepaid expenses 89.2 85.3

3 unchanged sentences

Prepaid fees for cloud-based hosting arrangements, current 12.8 12.9

Income taxes receivable 6.1 170.7

Other current assets 1.1 3.0

Total $ 350.7 $ 410.4

A summary of other assets as of September 30, 2021 and December 31, 2020 follows:

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

A summary of other assets as of March 31, 2022 and December 31, 2021 follows:

Operating right-of-use lease assets $ 248.1 $ 255.3

Deferred compensation plan 141.7 131.8

Investments 134.3 127.6

Reinsurance receivable 82.9 84.8

Deferred compensation plan 126.9 133.5

Deferred contract costs and sales commissions 79.3 80.6

Reinsurance receivable 79.0 79.5

Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements 53.3 43.4

Other derivative assets 21.5 63.8

Amounts recoverable for capping, closure and post-closure obligations 19.7 19.4

Interest rate swaps 6.6 10.0

Other derivative assets 14.1 15.0

Deferred financing costs 4.4 4.6

Interest rate swaps 1.4 4.7

Other 24.8 24.0

2 unchanged sentences

Other Accrued Liabilities

A summary of other accrued liabilities as of September 30, 2021 and December 31, 2020 follows:

Accrued payroll and benefits $ 246.7 $ 221.1

A summary of other accrued liabilities as of March 31, 2022 and December 31, 2021 follows:

Insurance reserves, current $ 195.6 $ 193.5

Accrued payroll and benefits 167.0 295.0

Accrued fees and taxes 148.5 143.7

2 unchanged sentences

Ceded insurance reserves, current 30.5 31.0

Current federal tax liabilities 9.9 0.3

Accrued professional fees and legal settlement reserves 9.2 8.4

1 unchanged sentence

Total $ 818.5 $ 929.5

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Other Long-Term Liabilities

A summary of other long-term liabilities as of September 30, 2021 and December 31, 2020 follows:

A summary of other long-term liabilities as of March 31, 2022 and December 31, 2021 follows:

Operating right-of-use lease liabilities $ 234.1 $ 239.0

4 unchanged sentences

Withdrawal liability - multiemployer pension funds 23.7 24.5

Pension and other post-retirement liabilities 5.5 5.5

Legal settlement reserves 3.6 3.1

Pension and other post-retirement liabilities 1.2 1.2

Other 51.7 60.6

Total $ 619.0 $ 642.4

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

LANDFILL AND ENVIRONMENTAL COSTS

As of September 30, 2021, we owned or operated 198 active solid waste landfills with total available disposal capacity estimated to be 5.0 billion in-place cubic yards.

As of March 31, 2022, we owned or operated 198 active solid waste landfills with total available disposal capacity estimated to be 5.0 billion in-place cubic yards.

Additionally, we had post-closure responsibility for 124 closed landfills.

Accrued Landfill and Environmental Costs

A summary of accrued landfill and environmental liabilities as of September 30, 2021 and December 31, 2020 follows:

A summary of accrued landfill and environmental liabilities as of March 31, 2022 and December 31, 2021 follows:

Landfill final capping, closure and post-closure liabilities $ 1,530.6 $ 1,507.3

4 unchanged sentences

Final Capping, Closure and Post-Closure Costs

The following table summarizes the activity in our asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure, for the nine months ended September 30, 2021 and 2020:

The following table summarizes the activity in our asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure, for the three months ended March 31, 2022 and 2021:

Asset retirement obligation liabilities, beginning of year $ 1,507.3 $ 1,346.4

11 unchanged sentences

In the normal course of business, we incur various operating costs associated with environmental compliance.

These costs include, among other things, leachate treatment and disposal, methane gas and groundwater monitoring, systems maintenance,

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

interim cap maintenance, costs associated with the application of daily cover materials, and the legal and administrative costs of ongoing environmental compliance.

These costs include, among other things, leachate treatment and disposal, methane gas and groundwater monitoring, systems maintenance, interim cap maintenance, costs associated with the application of daily cover materials, and the legal and administrative costs of ongoing environmental compliance.

These costs are expensed as cost of operations in the periods in which they are incurred.

3 unchanged sentences

In these cases, we use the amount within the range that constitutes our best estimate.

If no amount within the range appears to be a better estimate than any other, we use the amount that is at the low end of the range.

If no amount within the range appears to be a better estimate than any other, we use the amount that is at the low end of such range.

It is reasonably possible that we will need to adjust the liabilities recorded for remediation to reflect the effects of new or additional information, to the extent such information impacts the costs, timing or duration of the required actions.

If we used the reasonably possible high ends of our ranges, our aggregate potential remediation liability as of September 30, 2021 would be approximately $ 352 million higher than the amount recorded.

If we used the reasonably possible high ends of our ranges, our aggregate potential remediation liability as of March 31, 2022 would be approximately $ 342 million higher than the amount recorded.

Future changes in our estimates of the cost, timing or duration of the required actions could have a material adverse effect on our consolidated financial position, results of operations and cash flows.

The following table summarizes the activity in our environmental remediation liabilities for the nine months ended September 30, 2021 and 2020:

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The following table summarizes the activity in our environmental remediation liabilities for the three months ended March 31, 2022 and 2021:

Environmental remediation liabilities, beginning of year $ 454.9 $ 462.8

2 unchanged sentences

Accretion expense (non-cash interest expense) 4.1 4.3

Acquisitions, net of divestitures and other adjustments 25.6 2.9

Environmental remediation liabilities, end of period 449.0 460.2

2 unchanged sentences

Bridgeton Landfill.

During the nine months ended September 30, 2021, we paid $ 14.0 million related to management and monitoring of the remediation area for our closed Bridgeton Landfill in Missouri.

During the three months ended March 31, 2022, we paid $ 3.9 million related to management and monitoring of the remediation area for our closed Bridgeton Landfill in Missouri.

We continue to work with state and federal regulatory agencies on our remediation efforts.

From time to time, this may require us to modify our future operating timeline and procedures, which could result in changes to our expected liability.

As of September 30, 2021, the remediation liability recorded for this site was $ 107.7 million, of which approximately $ 4 million is expected to be paid during the remainder of 2021.

We believe the remaining reasonably possible high end of our range would be approximately $ 140 million higher than the amount recorded as of September 30, 2021.

As of March 31, 2022, the remediation liability recorded for this site was $ 98.9 million, of which approximately $ 12 million is expected to be paid during the remainder of 2022.

We believe the remaining reasonably possible high end of our range would be approximately $ 140 million higher than the amount recorded as of March 31, 2022.

West Lake Landfill Superfund Site .

9 unchanged sentences

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The carrying value of our credit facilities, finance leases and long-term debt as of September 30, 2021 and December 31, 2020 is listed in the following table, and is adjusted for the fair value of interest rate swaps, unamortized discounts, deferred issuance costs and the unamortized portion of adjustments to fair value recorded in purchase accounting.

The carrying value of our credit facilities, finance leases and long-term debt as of March 31, 2022 and December 31, 2021 is listed in the following table, and is adjusted for the fair value of interest rate swaps, unamortized discounts, deferred issuance costs and the unamortized portion of adjustments to fair value recorded in purchase accounting.

Original issue discounts, deferred issuance costs, and adjustments to fair value recorded in purchase accounting are amortized to interest expense over the term of the applicable instrument using the effective interest method.

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Maturity Interest Rate Principal Adjustments Carrying Value Principal Adjustments Carrying Value

4 unchanged sentences

Variable — — — 24.3 — 24.3

$ 2.25 billion - June 2023

Variable — — — 186.0 — 186.0

$ 3.0 billion - August 2026

Variable 364.7 — 364.7 — — —

Senior notes:

11 unchanged sentences

March 2035 6.086 181.9 ( 12.7 ) 169.2 181.9 ( 12.8 ) 169.1

May 2041 5.700 385.7 ( 5.0 ) 380.7 385.7 ( 5.1 ) 380.6

March 2040 6.200 399.9 ( 3.5 ) 396.4 399.9 ( 3.6 ) 396.3

May 2041 5.700 385.7 ( 5.0 ) 380.7 385.7 ( 5.0 ) 380.7

March 2050 3.050 400.0 ( 7.1 ) 392.9 400.0 ( 7.1 ) 392.9

September 2035 7.400 148.1 ( 30.8 ) 117.3 148.0 ( 31.1 ) 116.9

9 unchanged sentences

Credit Facilities

The 364-Day Credit Facility

In August 2020, we entered into a $ 1.0 billion 364-day unsecured revolving credit facility (the 364-Day Credit Facility), which matured in August 2021.

As of December 31, 2020, we had no borrowings outstanding under our 364-Day Credit Facility.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The Credit Facility

In August 2021, we entered into a $ 3.0 billion unsecured revolving credit facility (as amended, the Credit Facility), which amends and restates the prior $ 2.25 billion unsecured revolving credit facility which would have matured in June 2023 (the Replaced Credit Facility).

In August 2021, we entered into a $ 3.0 billion unsecured revolving credit facility (the Credit Facility).

Borrowings under the Credit Facility mature in August 2026.

As permitted by the Credit Facility, we have the right to request two one -year extensions of the maturity date, but none of the lenders are committed to participate in such extension.

As permitted by the Credit Facility, we have the right to request two one -year extensions of the maturity date, but none of the lenders are committed to participate in such extensions.

The Credit Facility also includes a feature that allows us to increase availability, at our option, by an aggregate amount of up to $ 1.0 billion through increased commitments from existing lenders or the addition of new lenders.

At our option, borrowings under the Credit Facility bear interest at a Base Rate, a daily floating London Interbank Offered Rate (LIBOR), or a Eurodollar Rate, plus an applicable margin based on our Debt Ratings (all as defined in the Credit Facility agreement).

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

At our option, borrowings under the Credit Facility bear interest at a Base Rate, a daily floating London Interbank Offered Rate (LIBOR), or a Eurodollar Rate, plus a current applicable margin of 0.910 % based on our Debt Ratings (all as defined in the Credit Facility agreement).

On the earliest of (i) the date that all available tenors of U.S.

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The Credit Facility is subject to facility fees based on applicable rates defined in the Credit Facility agreement and the aggregate commitment, regardless of usage.

Availability under our Credit Facility totaled $ 2,296.7 million as of September 30, 2021.

Availability under our Credit Facility totaled $ 2,661.1 million and $ 2,633.8 million as of March 31, 2022 and December 31, 2021, respectively.

The Credit Facility can be used for working capital, capital expenditures, acquisitions, letters of credit and other general corporate purposes.

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We may pay dividends and repurchase common stock if we are in compliance with these covenants.

We had $ 364.7 million and $ 186.0 million outstanding under our Credit Facility and Replaced Credit Facility as of September 30, 2021 and December 31, 2020, respectively.

We had $ 338.6 million and $ 376.5 million of letters of credit outstanding under our Credit Facility and Replaced Credit Facility as of September 30, 2021 and December 31, 2020, respectively.

We had no borrowings and $ 24.3 million outstanding under our Credit Facility as of March 31, 2022 and December 31, 2021, respectively.

We had $ 338.9 million and $ 341.9 million of letters of credit outstanding under our Credit Facility as of March 31, 2022 and December 31, 2021, respectively.

Uncommitted Credit Facility

We also have an Uncommitted Credit Facility, which bears interest at LIBOR or a Cost of Funds rate (both as defined in the Uncommitted Credit Facility agreement), plus an applicable margin.

We can use borrowings under the Uncommitted Credit Facility for working capital and other general corporate purposes.

In January 2022, we entered into a $ 200.0 million unsecured uncommitted revolving credit facility (the Uncommitted Credit Facility), which replaced the prior $ 135.0 million uncommitted credit facility (the Replaced Uncommitted Credit Facility).

The Uncommitted Credit Facility bears interest at an annual percentage rate to be agreed upon by both parties.

Borrowings under the Uncommitted Credit Facility can be used for working capital, letters of credit, and other general corporate purposes.

The agreement governing our Uncommitted Credit Facility requires us to comply with certain covenants.

The Uncommitted Credit Facility may be terminated by either party at any time.

As of September 30, 2021, we had $ 98.1 million outstanding under our Uncommitted Credit Facility.

As of December 31, 2020 , we had no borrowings outstanding under our Uncommitted Credit Facility.

As of March 31, 2022 and December 31, 2021, we had $ 80.4 million and no borrowings outstanding under our Uncommitted Credit Facility and Replaced Uncommitted Credit Facility, respectively.

Term Loan Credit Agreement

On April 29, 2022, we entered into a $ 1.0 billion unsecured Term Loan Credit Agreement (Term Loan Facility).

The Term Loan Facility will mature on April 29, 2025 and bears interest at a base rate or a forward-looking secured overnight financing rate, plus an applicable margin based on our debt ratings.

On May 2, 2022, we completed the acquisition of US Ecology using proceeds from the Term Loan Facility and borrowings on the Credit Facility.

Senior Notes and Debentures

In November 2021, we issued $ 700.0 million of 2.375 % senior notes due 2033 (the 2.375 % Notes).

We used the net proceeds for general corporate purposes, including repayment of amounts outstanding under our unsecured and uncommitted credit facilities.

Prior to such use, Republic may have temporarily invested the net proceeds in marketable securities and short-term investments.

During the second quarter of 2021, we paid the entire $ 35.3 million principal balance of our 9.250 % debentures which matured in May 2021.

In November 2020, we issued $ 350.0 million of 0.875 % senior notes due November 2025 (the 0.875 % Notes) and $ 750.0 million of 1.750 % senior notes due February 2032 (the 1.750 % Notes).

We used the net proceeds from the 0.875 % Notes and 1.750 % Notes to redeem all $ 850.0 million of the outstanding 3.550 % senior notes due June 2022 and $ 250.0 million of the $ 550.0 million outstanding 4.750 % senior notes due May 2023 (the 4.750 % Notes).

In August 2020, we issued $ 650.0 million of 1.450 % senior notes due February 2031 (the 1.450 % Notes).

We used the net proceeds to redeem all $ 600.0 million of the outstanding 5.250 % senior notes due November 2021 plus a make-whole premium of $ 34.0 million.

Additionally, we incurred a non-cash charge related to the unamortized deferred issuance costs of $ 0.5 million.

The remaining proceeds were used for general corporate purposes.

In February 2020, we issued $ 600.0 million of 2.300 % senior notes due March 2030 (the 2.300 % Notes) and $ 400.0 million of 3.050 % senior notes due March 2050 (the 3.050 % Notes).

We used the net proceeds from the 2.300 % Notes and 3.050 % Notes to repay $ 850.0 million of 5.000 % senior notes that matured in March 2020.

The remaining proceeds were used to repay amounts outstanding under our unsecured credit facilities as well as for general corporate purposes.

Our senior notes and debentures are general unsecured obligations.

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From time to time, we also have entered into interest rate swap and lock agreements to manage risk associated with interest rates, either to effectively convert specific fixed rate debt to a floating rate (fair value hedges), or to lock interest rates in anticipation of future debt issuances (cash flow hedges).

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Fair Value Hedges

In 2013, we entered into various interest rate swap agreements relative to the 4.750 % Notes.

During the second half of 2013, we entered into various interest rate swap agreements relative to our 4.750 % fixed rate senior notes due in May 2023 ( 4.750 % Notes).

The goal was to reduce overall borrowing costs and rebalance our debt portfolio's ratio of fixed-to-floating interest rates.

As of September 30, 2021, these swap agreements had a total notional value of $ 300.0 million and mature in May 2023, which is identical to the maturity of the hedged senior notes.

As of March 31, 2022, these swap agreements had a total notional value of $ 300.0 million and mature in May 2023.

We pay interest at floating rates based on changes in LIBOR and receive interest at a fixed rate of 4.750 %.

These transactions were designated as fair value hedges because the swaps hedge against the changes in fair value of the fixed rate senior notes resulting from changes in interest rates.

In 2013, these transactions were designated as fair value hedges because the swaps hedge against the changes in fair value of the 4.750 % notes resulting from changes in interest rates.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Contemporaneously with the $ 250.0 million partial redemption of the 4.750 % Notes in November 2020, we dedesignated the proportional share of these swap agreements as fair value hedges.

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Following the dedesignation, the fair value of these free-standing derivatives was determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy).

As of September 30, 2021 and December 31, 2020, these free-standing derivatives were reflected at their fair value of $ 5.5 million and $ 8.3 million, respectively, and were included in other assets in our consolidated balance sheets.

For the three and nine months ended September 30, 2021, we recognized a loss of $ 0.8 million and $ 2.8 million, respectively, directly in earnings as an adjustment to non-cash interest expense attributable to the change in fair value of the free-standing derivatives.

As of September 30, 2021 and December 31, 2020, the interest rate swap agreements that were designated as fair value hedges were reflected at their fair value of $ 6.6 million and $ 10.0 million, respectively, and were included in other assets in our consolidated balance sheets.

To the extent they are effective, these interest rate swap agreements are included as an adjustment to long-term debt in our consolidated balance sheets.

We recognized net interest income of $ 2.0 million and $ 1.8 million during the three months ended September 30, 2021 and 2020, respectively, and net interest income of $ 5.9 million and $ 3.8 million during the nine months ended September 30, 2021 and 2020, respectively, related to net settlements for these interest rate swap agreements, which was included as an offset to interest expense in our consolidated statements of income.

For the three months ended September 30, 2021 and 2020, we recognized gains of $ 0.9 million and $ 2.1 million, respectively, on the change in fair value of the hedged senior notes and offsetting losses of $ 1.0 million and $ 1.8 million, respectively, on the related interest rate swaps, both attributable to changes in the benchmark interest rate.

For the nine months ended September 30, 2021 and 2020, we recognized a gain of $ 3.5 million and a loss of $ 7.5 million, respectively, on the change in fair value of the hedged senior notes with an offsetting loss of $ 3.3 million and an offsetting gain of $ 9.3 million on the related interest rate swaps, both attributable to changes in the benchmark interest rate.

The difference of these fair value changes for the three and nine months ended September 30, 2021 and 2020 was recorded directly in earnings as an adjustment to interest expense in our consolidated statements of income.

As of March 31, 2022 and December 31, 2021, these free-standing derivatives were reflected at their fair value of $ 1.2 million and $ 3.9 million, respectively, and are included in other assets in our consolidated balance sheets.

For the three months ended March 31, 2022 and 2021, we recognized losses of $ 2.7 million and $ 1.1 million, respectively, directly in earnings as an adjustment to non-cash interest expense attributable to the change in fair value of the free-standing derivatives.

As of March 31, 2022 and December 31, 2021, the interest rate swap agreements that were designated as fair value hedges are reflected at their fair value of $ 1.4 million and $ 4.7 million, respectively, and are included in other assets in our consolidated balance sheets.

To the extent they are effective, the remaining hedged portion of these interest rate swap agreements is included as an adjustment to long-term debt in our consolidated balance sheets.

We recognized net interest income of $ 1.9 million and $ 2.0 million during the three months ended March 31, 2022 and 2021, respectively, related to net swap settlements for these interest rate swap agreements, which is included as an offset to interest expense in our consolidated statements of income.

For the three months ended March 31, 2022 and 2021, we recognized gains of $ 2.7 million and $ 1.5 million, respectively, related to the impact of changes in the benchmark interest rate on the fair value of the hedged senior notes and offsetting losses of $ 3.3 million and $ 1.4 million, respectively, on the related interest rate swaps attributable to changes in the benchmark interest rate.

The difference of these fair value changes for the three months ended March 31, 2022 and 2021 was recorded directly in earnings as an adjustment to interest expense in our consolidated statements of income.

For further detail regarding the effect of our fair value hedging on interest expense, refer to Note 11, Financial Instruments , of the notes to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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These transactions were accounted for as cash flow hedges.

All of our cash flow hedges settled on or before December 31, 2020, thus there was no related asset or liability as of September 30, 2021 or December 31, 2020.

All of our cash flow hedges settled on or before December 31, 2020.

The fair value of our interest rate locks is determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy).

There was no unrealized gain or loss recognized in other comprehensive income for the three or nine months ended September 30, 2021.

For the three and nine months ended September 30, 2020, total unrealized loss recognized in other comprehensive income for interest rate locks was $ 0.2 million and $ 22.5 million, net of tax, respectively.

As of September 30, 2021 and December 31, 2020, our previously terminated interest rate locks were recorded as components of accumulated other comprehensive loss, net of tax of $ 26.9 million and $ 30.4 million, respectively.

The amortization of the terminated interest rate locks is recorded as an adjustment to interest expense over the life of the issued debt using the effective interest method.

As of March 31, 2022 and December 31, 2021, our previously terminated interest rate locks were recorded as components of accumulated other comprehensive loss of $ 24.7 million and $ 25.8 million, respectively, net of tax.

The effective portion of the interest rate locks is amortized as an adjustment to interest expense over the life of the issued debt using the effective interest method.

Over the next 12 months, we expect to amortize approximately $ 4.3 million, net of tax, from accumulated other comprehensive loss to interest expense as a yield adjustment of our senior notes.

For further detail regarding the effect of our cash flow hedging on interest expense, refer to Note 11, Financial Instruments , of the notes to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Derivative Contracts

Contemporaneously with the issuance of our 2.300 % Notes in February 2020, we amended interest rate lock agreements with an aggregate notional value of $ 550.0 million, extending the mandatory maturity date from 2020 to 2030, and dedesignated them as cash flow hedges (the 2020 Extended Interest Rate Locks).

Contemporaneously with the issuance of our 2.500 % Notes in August 2019, we amended interest rate lock agreements with an aggregate notional value of $ 375.0 million, extending the mandatory maturity date from 2019 to 2024, and dedesignated them as cash flow hedges (collectively with the 2020 Extended Interest Rate Locks referred to as the Extended Interest Rate Locks).

Contemporaneously with the issuance of our 2.500 % Notes in August 2019, we amended interest rate lock agreements with an aggregate notional value of $ 375.0 million, extending the mandatory maturity date from 2019 to 2024, and dedesignated them as cash flow hedges (2019 Extended Interest Rate Locks and collectively with the 2020 Extended Interest Rate Locks referred to as the Extended Interest Rate Locks).

There was no ineffectiveness recognized in the termination of these cash flow hedges.

In addition, in both years we entered into offsetting interest rate swaps to offset future exposures to fair value fluctuations of the Extended Interest Rate Locks (the 2019 Offsetting Interest Rate Swap and the 2020 Offsetting Interest Rate Swap, or collectively the Offsetting Interest Rate Swaps).

In addition, we entered into offsetting interest rate swaps to offset future exposures to fair value fluctuations of the Extended Interest Rate Locks (the 2019 Offsetting Interest Rate Swap and the 2020 Offsetting Interest Rate Swap, or collectively the Offsetting Interest Rate Swaps).

The fair value of these free-standing derivatives was determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy).

As of September 30, 2021 and December 31, 2020, the fair values of the Extended Interest Rate Locks were liabilities of $ 56.3 million and $ 103.0 million, respectively, which were included in other long-term liabilities in our consolidated balance sheets.

As of September 30, 2021 and December 31, 2020, the fair value of the Offsetting Interest Rate Swaps were assets of $ 16.0 million and $ 55.5 million, respectively, which were included in other assets in our consolidated balance sheet.

For the three and nine months ended September 30, 2021, we recognized gains of $ 9.7 million and $ 38.7 million, respectively, on the change in fair value of the Extended Interest Rate Locks with offsetting losses of $ 10.1 million and $ 39.2 million, respectively, on the change in fair value of the Offsetting Interest Rate Swaps.

For the three and nine months ended September 30, 2020, we recognized a gain of $ 8.6 million and a loss of $ 62.9 million, respectively, on the change in fair value of the Extended Interest Rate Locks with an offsetting loss of $ 8.6 million and an offsetting gain of $ 60.7 million, respectively, on the change in fair value of the Offsetting Interest Rate Swaps.

As of March 31, 2022 and December 31, 2021, the fair values of the 2019 Extended Interest Rate Locks were liabilities of $ 3.2 million and $ 20.9 million, respectively, which were included in other long-term liabilities in our consolidated balance

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

As of March 31, 2022, the fair value of the 2020 Extended Interest Rate Locks were assets of $ 12.9 million, which were included in other assets in our consolidated balance sheet, and as of December 31, 2021, the fair value of the 2020 Extended Interest Rate Locks were liabilities of $ 29.0 million, which were included in other long-term liabilities in our consolidated balance sheet.

As of March 31, 2022, the fair value of the 2019 Offsetting Interest Rate Swap was a liability of $ 6.9 million, which was included in other long-term liabilities in our consolidated balance sheet, and as of December 31, 2021, the fair value of the 2019 Offsetting Interest Rate Swap was an asset of $ 11.1 million, which was included in other assets in our consolidated balance sheet.

As of March 31, 2022 and December 31, 2021, the fair value of the 2020 Offsetting Interest Rate Swap was a liability of $ 37.2 million and $ 0.8 million, respectively, which were included in other long-term liabilities in our consolidated balance sheets.

For the three months ended March 31, 2022 and 2021, we recognized gains of $ 53.1 million and $ 47.1 million, respectively, on the change in fair value of the Extended Interest Rate Locks with offsetting losses of $ 51.8 million and $ 46.7 million, respectively, on the change in fair value of the Offsetting Interest Rate Swaps.

The changes in fair value were recorded directly in earnings as an adjustment to interest expense in our consolidated statements of income.

Tax-Exempt Financings

As of September 30, 2021 we had $ 1,151.6 million of certain variable rate tax-exempt financings outstanding with maturities ranging from 2023 to 2051.

As of December 31, 2020, we had $ 1,104.7 million of certain variable rate tax-exempt financings outstanding with maturities ranging from 2021 to 2050.

During the third quarter of 2021, we issued $ 175.0 million of tax exempt financings.

During the second quarter of 2020, we issued $ 60.0 million of tax-exempt financings.

As of March 31, 2022 and December 31, 2021 we had $ 1,181.7 million and $ 1,181.5 million of certain variable rate tax-exempt financings outstanding respectively, with maturities ranging from 2023 to 2051.

During 2021, we issued $ 205.0 million of tax exempt financings.

In the fourth quarter of 2021, the Pennsylvania Economic Development Financing Authority issued, for our benefit, $ 30.0 million of Solid Waste Disposal Revenue Bonds.

The proceeds from the issuance, after deferred issuance costs, will be used to fund qualifying landfill-related expenditures in the Commonwealth of Pennsylvania, of which $ 23.4 million and $ 17.2 million was incurred and reimbursed to us as of March 31, 2022 and December 31, 2021, respectively .

As of March 31, 2022 and December 31, 2021 , we had $ 117.2 million and $ 139.0 million, respectively, of restricted cash and marketable securities, of which $ 6.2 million and $ 12.4 million, respectively, represented proceeds from the issuance of the tax-exempt bonds.

All of our tax-exempt financings are remarketed either quarterly or semiannually by remarketing agents to effectively maintain a variable yield.

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In the event of a failed remarketing, we currently have availability under our Credit Facility to fund these bonds until they are remarketed successfully.

Accordingly, we classified these borrowings as long-term in our consolidated balance sheets as of September 30, 2021 and December 31, 2020.

Accordingly, we classified these borrowings as long-term in our consolidated balance sheets as of March 31, 2022 and December 31, 2021.

Finance Leases

We had finance lease liabilities of $ 244.5 million and $ 206.5 million as of September 30, 2021 and December 31, 2020, respectively, with maturities ranging from 2021 to 2063.

Our effective tax rate, exclusive of non-controlling interests, for the three and nine months ended September 30, 2021 was 25.5 % and 24.6 %, respectively.

Our effective tax rate, exclusive of non-controlling interests, for the three and nine months ended September 30, 2020 was 18.4 % and 22.1 %, respectively.

Cash paid for income taxes was $ 182.1 million for the nine months ended September 30, 2021 and $ 34.2 million for the same period in 2020.

The year over year increase results from tax refunds received in the prior year that did not recur in 2021 and higher projected taxable income in the current year.

We had finance lease liabilities of $ 256.6 million and $ 249.4 million as of March 31, 2022 and December 31, 2021, respectively, with maturities ranging from 2022 to 2063.

Our effective tax rate, exclusive of non-controlling interests, for the three months ended March 31, 2022 and 2021 was 25.5 % and 25.9 %, respectively.

Cash paid for income taxes was a net payment of $ 3.7 million and net refund of $ 0.4 million for the three months ended March 31, 2022 and 2021, respectively.

We have deferred tax assets related to state net operating loss carryforwards.

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The weight given to the positive and negative evidence is commensurate with the extent such evidence can be objectively verified.

We continue to regularly monitor both positive and

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

negative evidence in determining the ongoing need for a valuation allowance.

As of September 30, 2021, the valuation allowance associated with our state loss carryforwards was approximately $ 45 million.

We are subject to income tax in the United States, as well as in multiple state jurisdictions.

We continue to regularly monitor both positive and negative evidence in determining the ongoing need for a valuation allowance.

As of March 31, 2022, the valuation allowance associated with our state loss carryforwards was approximately $ 43 million.

We are subject to income tax in the United States, as well as income tax in multiple state jurisdictions.

Our compliance with income tax rules and regulations is periodically audited by taxing authorities.

These authorities may challenge the positions taken in our tax filings.

Thus, to provide for certain potential tax exposures, we maintain liabilities for uncertain tax positions

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

for our estimate of the final outcome of the examinations.

Our federal statute of limitations is closed for all years prior to 2015.

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In addition, we are currently under state examination or administrative review in various jurisdictions for tax years 2012 through 2020.

We believe our recorded liabilities for uncertain tax positions are adequate.

We believe the recorded liabilities for uncertain tax positions are adequate.

However, a significant assessment against us in excess of the liabilities recorded could have a material adverse effect on our consolidated financial position, results of operations and cash flows.

As of September 30, 2021, we are unable to estimate the resolution of our gross unrecognized benefits over the next 12 months.

As of March 31, 2022, we are unable to estimate the resolution of our gross unrecognized benefits over the next 12 months.

We recognize interest and penalties as incurred within the provision for income taxes in the consolidated statement of income.

As of September 30, 2021, we accrued a liability for penalties of $ 0.3 million and a liability for interest (including interest on penalties) of $ 13.3 million related to our uncertain tax positions.

As of March 31, 2022, we accrued a liability for penalties of $ 0.3 million and a liability for interest (including interest on penalties) of $ 14.0 million related to our uncertain tax positions.

STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE

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The share repurchase program may be extended, suspended or discontinued at any time.

Stock repurchase activity during the three and nine months ended September 30, 2021 and 2020 follows (in millions, except per share amounts):

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Stock repurchase activity during the three months ended March 31, 2022 and 2021 follows (in millions, except per share amounts):

Three Months Ended March 31,

Number of shares repurchased 1.6 0.1

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Weighted average cost per share $ 124.02 $ 89.63

As of September 30, 2021, 0.3 million repurchased shares were pending settlement.

As of September 30, 2021, $ 36.5 million of share repurchases were unpaid and included within other accrued liabilities.

As of September 30, 2020, no repurchased shares were pending settlement.

As of September 30, 2021, the remaining authorized purchase capacity under our October 2020 repurchase program was $ 1.8 billion.

In July 2021, our Board of Directors approved a quarterly dividend of $ 0.46 per share.

Cash dividends declared were $ 417.1 million for the nine months ended September 30, 2021.

As of September 30, 2021, we recorded a quarterly dividend payable of $ 146.1 million to shareholders of record at the close of business on October 1, 2021.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

As of March 31, 2022 and 2021, no repurchased shares were pending settlement.

As of March 31, 2022, the remaining authorized purchase capacity under our October 2020 repurchase program was $ 1.5 billion.

In February 2022, our Board of Directors approved a quarterly dividend of $ 0.46 per share.

Cash dividends declared were $ 145.3 million for the three months ended March 31, 2022.

As of March 31, 2022, we recorded a quarterly dividend payable of $ 145.3 million to shareholders of record at the close of business on April 1, 2022.

Earnings per Share

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by the weighted average number of common shares (including vested but unissued restricted stock units and performance stock units) outstanding during the period.

Diluted earnings per share is based on the combined weighted average number of common shares and common share equivalents outstanding, which include, where appropriate, the assumed exercise of employee stock options, unvested restricted stock units (RSUs) and unvested performance stock units (PSUs) at the expected attainment levels.

Diluted earnings per share is based on the combined weighted average number of common shares and common share equivalents outstanding, which include, where appropriate, the unvested restricted stock units (RSUs) and the unvested performance stock units (PSUs) at the expected attainment levels.

We use the treasury stock method in computing diluted earnings per share.

Earnings per share for the three and nine months ended September 30, 2021 and 2020 are calculated as follows (in thousands, except per share amounts):

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Earnings per share for the three months ended March 31, 2022 and 2021 are calculated as follows (in thousands, except per share amounts):

Three Months Ended March 31,

Basic earnings per share:

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Effect of dilutive securities:

Options to purchase common stock — 41 — 68

Unvested RSU awards 214 141

Unvested PSU awards

393 323 306 313

Weighted average common and common equivalent shares outstanding

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Diluted earnings per share $ 1.11 $ 0.93

There were less than 0.1 million antidilutive securities outstanding for the three and nine months ended September 30, 2021.

During the three months ended September 30, 2020, there were less than 0.1 million antidilutive securities outstanding, and during the nine months ended September 30, 2020, there were 0.1 million antidilutive securities outstanding.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

During both the three months ended March 31, 2022 and 2021, there were less than 0.1 million antidilutive securities outstanding.

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT

A summary of changes in accumulated other comprehensive loss, net of tax, by component, for the nine months ended September 30, 2021 follows:

A summary of changes in accumulated other comprehensive loss, net of tax, by component, for the three months ended March 31, 2022 follows:

Cash Flow Hedges Defined Benefit Pension Items Total

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Amounts reclassified from accumulated other comprehensive loss 1.1 — 1.1

Net current period other comprehensive income 3.5 ( 0.7 ) 2.8

Balance as of September 30, 2021 $ ( 26.9 ) $ 17.3 $ ( 9.6 )

A summary of reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2021 and 2020 follows:

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive (Loss) Income Amount Reclassified from Accumulated Other Comprehensive (Loss) Income Affected Line Item in the Statement where Net Income is Presented

Net current period other comprehensive loss 1.1 — 1.1

Balance as of March 31, 2022 $ ( 24.7 ) $ 11.2 $ ( 13.5 )

A summary of reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2022 and 2021 follows:

Three Months Ended March 31,

Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive (Loss) Income Affected Line Item in the Statement where Net Income is Presented

Loss on cash flow hedges:

Terminated interest rate locks $ ( 1.5 ) $ ( 1.5 ) Interest expense

Total before tax ( 1.6 ) ( 1.6 ) ( 4.7 ) ( 4.3 )

Tax benefit 0.4 0.4

Net of tax $ ( 1.2 ) $ ( 1.2 ) $ ( 3.5 ) $ ( 3.2 )

Pension gains:

Pension settlement $ — $ — $ 0.9 $ — Other income

Tax expense — — ( 0.2 ) —

Net of tax — — 0.7 —

Total loss reclassified into earnings, net of tax $ ( 1.1 ) $ ( 1.1 )

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FINANCIAL INSTRUMENTS

The effect of our hedging relationships and derivative instruments on the consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 follows (in millions):

The effect of our hedging relationships and derivative instruments on the consolidated statements of income for the three months ended March 31, 2022 and 2021 follows (in millions):

Classification and amount of gain (loss) recognized in income on hedging relationships and derivative instruments

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

Interest Expense Interest Expense Interest Expense Interest Expense

Three Months Ended March 31,

Interest Expense Interest Expense

Total amount of expense line items presented in the consolidated statements of income in which the effects of hedging relationships and derivative instruments are recorded $ ( 83.5 ) $ ( 78.4 )

The effects of fair value and cash flow hedging relationships in Subtopic 815-20:

Gain (loss) on fair value hedging relationships:

Gain on fair value hedging relationships:

Interest rate swaps:

Net swap settlements $ 1.9 $ 2.0

Net periodic (loss) earnings $ ( 0.1 ) $ 0.3 $ 0.2 $ 1.8

Net periodic (expense) earnings $ ( 0.5 ) $ 0.1

Loss on cash flow hedging relationships:

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The effects of derivative instruments not in Subtopic 815-20:

(Loss) gain on free-standing derivative instruments:

Gain (loss) on free-standing derivative instruments:

Interest rate swaps:

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Interest rate contract:

Net loss on change in fair value of free-standing derivative instruments $ ( 0.4 ) $ — $ ( 0.5 ) $ ( 2.2 )

Net gain on change in fair value of free-standing derivative instruments $ 1.3 $ 0.4

Fair Value Measurements

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The carrying value for certain of our financial instruments, including cash, accounts receivable, current investments, accounts payable and certain other accrued liabilities, approximates fair value because of their short-term nature.

As of September 30, 2021 and December 31, 2020, our assets and liabilities that are measured at fair value on a recurring basis include the following:

September 30, 2021

As of March 31, 2022 and December 31, 2021, our assets and liabilities that are measured at fair value on a recurring basis include the following:

March 31, 2022

Carrying Amount Total Quoted

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Total liabilities $ 119.5 $ 119.5 $ — $ 50.7 $ 68.8

The carrying value of our total debt was $ 9.3 billion and $ 8.9 billion as of September 30, 2021 and December 31, 2020, respectively, and the fair value of our total debt was $ 10.1 billion and $ 10.0 billion, respectively.

The carrying value of our total debt was $ 9.6 billion as of both March 31, 2022 and December 31, 2021, and the fair value of our total debt was $ 9.6 billion and $ 10.3 billion, respectively.

The estimated fair value of our fixed rate senior notes and debentures is based on quoted market prices.

The fair value of our remaining notes payable, tax-exempt financings and borrowings under our credit facilities approximates the carrying value because the interest rates are variable.

The fair value estimates were based on Level 2 inputs of the fair value hierarchy as of September 30, 2021 and December 31, 2020.

The fair value estimates were based on Level 2 inputs of the fair value hierarchy as of March 31, 2022 and December 31, 2021.

See Note 7, Debt , for further information related to our debt.

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In 2015, we entered into a waste management contract with the County of Sonoma, California to operate the county's waste management facilities.

As of September 30, 2021, the Sonoma contingent consideration represents the fair value of $ 62.9 million payable to the County of Sonoma based on the achievement of future annual tonnage targets through the expected remaining capacity of the landfill.

As of March 31, 2022, the Sonoma contingent consideration represents the fair value of $ 61.9 million payable to the County of Sonoma based on the achievement of future annual tonnage targets through the expected remaining capacity of the landfill.

The potential undiscounted amount of all future contingent payments that we could be required to make under the waste management contract is estimated to be between approximately $ 77 million and $ 95 million.

During the nine months ended September 30, 2021, the activity in the contingent consideration liability included accretion, which was offset by concession payments made in the ordinary course of business.

During the three months ended March 31, 2022, the activity in the contingent consideration liability included accretion, which was offset by concession payments made in the ordinary course of business.

There were no changes to the estimate of fair value.

SEGMENT REPORTING

In December 2020, our senior management began evaluating, overseeing and managing the financial performance of our operations through three operating segments.

Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, which are our operating segments, referred to as Group 1, Group 2, and Environmental Solutions.

Group 1 primarily consists of geographic areas located in the western United States, and Group 2 primarily consists of geographic areas located in the southeastern and mid-western United States, and the eastern seaboard of the United States.

1 unchanged sentence

Each of our operating segments provides integrated environmental services, including collection, transfer, recycling, and disposal.

Summarized financial information concerning our reportable segments for the three and nine months ended September 30, 2021 and 2020 follows:

Gross Revenue Intercompany Revenue Net Revenue Depreciation, Amortization, Depletion and Accretion Operating Income (Loss) Capital Expenditures Total Assets

Three Months Ended September 30, 2021

Group 1 $ 1,719.5 $ ( 277.9 ) $ 1,441.6 $ 140.7 $ 391.1 $ 144.3 $ 12,018.7

Group 2 1,626.5 ( 238.5 ) 1,388.0 139.4 294.0 141.1 9,723.4

Corporate entities and other 115.3 ( 11.0 ) 104.3 42.0 ( 120.9 ) 10.2 2,686.8

Total $ 3,461.3 $ ( 527.4 ) $ 2,933.9 $ 322.1 $ 564.2 $ 295.6 $ 24,428.9

Three Months Ended September 30, 2020

Group 1 $ 1,544.2 $ ( 254.1 ) $ 1,290.1 $ 131.2 $ 349.7 $ 117.7 $ 11,530.4

Group 2 1,432.6 ( 217.5 ) 1,215.1 125.0 241.9 116.7 8,883.9

Corporate entities and other 76.5 ( 9.6 ) 66.9 35.2 ( 143.7 ) ( 0.1 ) 2,695.8

Total $ 3,053.3 $ ( 481.2 ) $ 2,572.1 $ 291.4 $ 447.9 $ 234.3 $ 23,110.1

Summarized financial information concerning our reportable segments for the three months ended March 31, 2022 and 2021 follows:

Gross Revenue Intercompany Revenue Net Revenue Depreciation, Amortization, Depletion and Accretion Operating Income (Loss) Capital Expenditures Total Assets

Nine Months Ended September 30, 2021

Three Months Ended March 31, 2022

Group 1 $ 1,702.2 $ ( 261.8 ) $ 1,440.4 $ 143.7 $ 372.8 $ 104.0 $ 12,141.1

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Total $ 3,466.3 $ ( 497.5 ) $ 2,968.8 $ 332.1 $ 560.6 $ 334.1 $ 24,880.1

Nine Months Ended September 30, 2020

Three Months Ended March 31, 2021

Group 1 $ 1,547.6 $ ( 249.0 ) $ 1,298.6 $ 132.1 $ 351.5 $ 108.1 $ 11,562.5

2 unchanged sentences

Total $ 3,057.1 $ ( 461.2 ) $ 2,595.9 $ 302.6 $ 492.4 $ 331.0 $ 23,252.1

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Financial information for the three and nine months ended September 30, 2020 reflects the transfer of our Environmental Solutions operating segment from Group 2 to Corporate entities and other.

Intercompany revenue reflects transactions within and between segments that generally are made on a basis intended to reflect the market value of such services.

1 unchanged sentence

Corporate functions include legal, tax, treasury, information technology, risk management, human resources, closed landfills, other administrative functions, and environmental solutions.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

REVENUE AND CREDIT LOSSES

Our operations primarily consist of providing environmental services.

The following table disaggregates our revenue by service line for the three and nine months ended September 30, 2021 and 2020 (in millions of dollars and as a percentage of revenue):

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

The following table disaggregates our revenue by service line for the three months ended March 31, 2022 and 2021 (in millions of dollars and as a percentage of revenue):

Three Months Ended March 31,

$ 627.9 21.1 % $ 593.1 22.8 %

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Environmental solutions 108.9 39.0

intercompany ( 9.6 ) ( 4.1 )

Environmental solutions, net

99.3 3.4 34.9 1.3

Recycling processing and commodity sales

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Total revenue $ 2,968.8 100.0 % $ 2,595.9 100.0 %

Other non-core revenue consists primarily of revenue from National Accounts, which represents the portion of revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated waste handling is subcontracted to local operators.

Other non-core revenue consists primarily of revenue from National Accounts, which represents the portion of revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local operators.

Consequently, substantially all of this revenue is offset with related subcontract costs, which are recorded in cost of operations.

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In the event that we bill for services in advance of performance, we recognize deferred revenue for the amount billed and subsequently recognize revenue at the time the service is provided.

Substantially all of the deferred revenue recognized as of December 31, 2020 was recognized as revenue during the nine months ended September 30, 2021 when the service was performed.

Depending on the nature of the contract, we may also generate revenue through the collection of fuel recovery fees and environmental fees which are designed to recover our internal costs of providing services to our customers.

Substantially all of the deferred revenue recognized as of December 31, 2021 was recognized as revenue during the three months ended March 31, 2022 when the service was performed.

See Note 12, Segment Reporting , for additional information regarding revenue by reportable segment.

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We do not disclose the value of unsatisfied performance obligations for these contracts as our right to consideration corresponds directly to the value provided to the customer for services completed to date and all future variable consideration is allocated to wholly unsatisfied performance obligations.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Additionally, certain elements of our long-term customer contracts are unknown upon entering into the contract, including the amount that will be billed in accordance with annual price escalation clauses, our fuel recovery fee program and commodity prices.

The amount to be billed is often tied to changes in an underlying base index such as a consumer price index or a fuel or commodity index, and revenue can be recognized once the index is established for the period.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Deferred Contract Costs

1 unchanged sentence

In addition, we recognize sales commissions that represent an incremental cost of the contract as other assets in our consolidated balance sheets, and we amortize the asset over the average life of the customer relationship.

As of September 30, 2021 and December 31, 2020, we recognized $ 80.1 million and $ 82.3 million, respectively, of deferred contract costs and capitalized sales commissions.

During the three and nine months ended September 30, 2021, we amortized $ 3.0 million and $ 9.4 million, respectively, of capitalized sales commissions to selling, general and administrative expenses and we amortized $ 1.5 million and $ 4.6 million, respectively, of other deferred contract costs as a reduction of revenue.

During the three and nine months ended September 30, 2020, we amortized $ 2.9 million and $ 9.1 million, respectively, of capitalized sales commissions to selling, general and administrative expenses and we amortized $ 1.6 million and $ 4.9 million, respectively, of other deferred contract costs as a reduction of revenue.

As of March 31, 2022 and December 31, 2021, we recognized $ 79.3 million and $ 80.6 million, respectively, of deferred contract costs and capitalized sales commissions.

During the three months ended March 31, 2022 and 2021, we amortized $ 3.3 million and $ 3.1 million, respectively, of capitalized sales commissions to selling, general and administrative expenses and we amortized $ 1.5 million and $ 1.6 million, respectively, of other deferred contract costs as a reduction of revenue.

Credit Losses

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We perform ongoing credit evaluations of our customers, but generally do not require collateral to support customer receivables.

The following table reflects the activity in our allowance for doubtful accounts for the nine months ended September 30, 2021 and 2020:

The following table reflects the activity in our allowance for doubtful accounts for the three months ended March 31, 2022 and 2021:

Balance at beginning of year $ 38.5 $ 34.7

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We accrue for legal proceedings when losses become probable and reasonably estimable.

We have recorded an aggregate accrual of approximately $ 27 million relating to our outstanding legal proceedings as of September 30, 2021.

As of the end of each applicable reporting period, we review each of our legal proceedings and, where it is probable that a liability has been

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

incurred, we accrue for all probable and reasonably estimable losses.

We have recorded an aggregate accrual of approximately $ 12 million relating to our outstanding legal proceedings as of March 31, 2022.

As of the end of each applicable reporting period, we review each of our legal proceedings and, where it is probable that a liability has been incurred, we accrue for all probable and reasonably estimable losses.

Where we can reasonably estimate a range of losses we may incur regarding such a matter, we record an accrual for the amount within the range that constitutes our best estimate.

If we can reasonably estimate a range but no amount within the range appears to be a better estimate than any other, we use the amount that is the low end of such range.

If we had used the high ends of such ranges, our aggregate potential liability would be approximately $ 4 million higher than the amount recorded as of September 30, 2021.

If we had used the high ends of such ranges, our aggregate potential liability would be approximately $ 5 million higher than the amount recorded as of March 31, 2022.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Multiemployer Pension Plans

7 unchanged sentences

Beginning-of-period and end-of-period cash, cash equivalents, restricted cash and restricted cash equivalents as presented in the statement of cash flows is reconciled as follows:

September 30, 2021 December 31, 2020 September 30, 2020 December 31, 2019

March 31, 2022 December 31, 2021 March 31, 2021 December 31, 2020

Cash and cash equivalents $ 39.0 $ 29.0 $ 23.2 $ 38.2

2 unchanged sentences

Cash, cash equivalents, restricted cash and restricted cash equivalents $ 97.1 $ 105.6 $ 88.3 $ 114.2

Our restricted cash and marketable securities include, among other things, restricted cash and marketable securities pledged to regulatory agencies and governmental entities as financial guarantees of our performance under certain collection, landfill and transfer station contracts and permits, and relating to our final capping, closure and post-closure obligations at our landfills as well as restricted cash and marketable securities related to our insurance obligations.

Our restricted cash and marketable securities include, among other things, restricted cash related to proceeds from the issuance of tax-exempt bonds that will be used to fund qualifying landfill-related expenditures in the Commonwealth of Pennsylvania, restricted cash and marketable securities pledged to regulatory agencies and governmental entities as financial guarantees of our performance under certain collection, landfill and transfer station contracts and permits, and relating to our final capping, closure and post-closure obligations at our landfills as well as restricted cash and marketable securities related to our insurance obligations.

The following table summarizes our restricted cash and marketable securities:

September 30, 2021 December 31, 2020

March 31, 2022 December 31, 2021

Financing proceeds $ 6.2 $ 12.4

Capping, closure and post-closure obligations 42.4 42.4

6 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements