What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-10-28 compared with 2022-08-05 · 296 added, 202 removed, 735 unchanged (40% of the section changed)

3 unchanged sentences

(in millions, except per share data)

June 30, December 31,

September 30, December 31,

Current assets:

46 unchanged sentences

(in millions, except per share data)

Three Months Ended June 30, Six Months Ended June 30,

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

2022 2021 2022 2021

5 unchanged sentences

Withdrawal costs - multiemployer pension funds

Loss (gain) on business divestitures and impairments, net — 0.9 — ( 0.2 )

Gain on business divestitures and impairments, net ( 5.2 ) — ( 5.3 ) ( 0.2 )

Restructuring charges 6.8 4.6 18.8 11.2

7 unchanged sentences

Net income 416.9 350.8 1,140.6 979.2

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

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

— ( 0.5 ) 0.2 ( 1.9 )

15 unchanged sentences

(in millions)

Three Months Ended June 30, Six Months Ended June 30,

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

2022 2021 2022 2021

3 unchanged sentences

Realized loss reclassified into earnings — 1.2 2.1 3.5

Unrealized loss ( 1.1 ) — ( 1.1 ) —

Unrealized gain 9.1 — 8.1 —

Pension activity:

2 unchanged sentences

Foreign currency activity:

Gain on foreign currency translation 0.1 — 0.1 —

Loss on foreign currency translation ( 6.1 ) — ( 6.2 ) —

Other comprehensive income, net of tax 3.0 1.2 4.0 2.8

Comprehensive income 419.9 352.0 1,144.6 982.0

Comprehensive loss (income) attributable to non-controlling interests 0.1 ( 0.9 ) 0.2 ( 1.4 )

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

Comprehensive income attributable to Republic Services, Inc.

20 unchanged sentences

Net income — — — 371.9 — — — ( 0.1 ) 371.8

Other comprehensive income — — — — — — 0.1 — 0.1

Other comprehensive loss — — — — — — ( 0.1 ) — ( 0.1 )

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

4 unchanged sentences

320.1 3.2 2,818.9 6,907.1 ( 4.1 ) ( 500.4 ) ( 13.6 ) 0.6 9,215.8

Net income — — — 416.9 — — — — 416.9

Other comprehensive income — — — — — — 3.0 — 3.0

Cash dividends declared — — — ( 156.4 ) — — — — ( 156.4 )

Issuances of common stock 0.1 — 2.9 — ( 0.1 ) ( 0.3 ) — — 2.6

Stock-based compensation — — 10.2 ( 0.8 ) — — — — 9.4

Purchase of common stock for treasury

— — — — — — — — —

Distributions paid — — ( 0.8 ) — — — — — ( 0.8 )

Balance as of September 30, 2022

320.2 $ 3.2 $ 2,831.2 $ 7,166.8 ( 4.2 ) $ ( 500.7 ) $ ( 10.6 ) $ 0.6 $ 9,490.5

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

21 unchanged sentences

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.

2 unchanged sentences

(in millions)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash provided by operating activities:

4 unchanged sentences

Stock-based compensation 30.8 49.1

Deferred tax provision 52.8 42.5

Deferred tax provision (benefit) 100.2 ( 32.8 )

Provision for doubtful accounts, net of adjustments 27.8 18.7

30 unchanged sentences

Effect of foreign exchange rate changes on cash ( 3.1 ) —

Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents 78.2 ( 2.2 )

Increase in cash, cash equivalents, restricted cash and restricted cash equivalents 42.2 8.7

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

5 unchanged sentences

Republic Services, Inc., a Delaware corporation, and its consolidated subsidiaries (also referred to collectively as Republic, the Company, we, us, or our), is one of the largest providers of environmental services in the United States, as measured by revenue.

We manage and evaluate our operations through three operating segments, Group 1, Group 2, and Environmental Solutions.

Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3.

Group 1 is our recycling and solid waste business operating in geographic areas located in the western United States.

Group 2 is our recycling and solid waste business operating in geographic areas located in the southeastern and mid-western United States, and the eastern seaboard of the United States.

Group 3 is our environmental solutions business in geographic areas located primarily across the United States and Canada.

These groups represent our reportable segments, which each provide integrated environmental solutions, including but not limited to collection, transfer, recycling, and disposal.

Prior to the third quarter of 2022, our environmental services operating segment, now referred to as our Group 3 reportable segment, was aggregated with Corporate entities and other.

The unaudited consolidated financial statements include the accounts of Republic Services, Inc.

28 unchanged sentences

The amendments in ASU 2020-04 provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.

During the quarter ended June 30, 2022, we novated a certain hedging relationship related to one of our interest rate swap agreements by changing the reference rate from the London Interbank Offered Rate (LIBOR) to a secured overnight financing rate (SOFR).

During the quarter ended June 30, 2022, we novated a

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

certain hedging relationship related to one of our interest rate swap agreements by changing the reference rate from the London Interbank Offered Rate (LIBOR) to a secured overnight financing rate (SOFR).

The amendment did not have a material impact on our consolidated financial statements.

1 unchanged sentence

We have not modified any other contracts as a result of reference rate reform.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Business Combinations

5 unchanged sentences

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

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES

We acquired various environmental services, waste, and recycling businesses during the six months ended June 30, 2022 and 2021.

We acquired various environmental services, waste, and recycling businesses during the nine months ended September 30, 2022 and 2021.

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

36 unchanged sentences

Excluding the US Ecology acquisition discussed below, substantially all of the goodwill and intangible assets recorded for these acquisitions are deductible for tax purposes.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

These acquisitions are not material to the Company's results of operations, individually or in the aggregate.

As a result, no pro forma financial information is provided.

On May 2, 2022, we acquired all outstanding equity of US Ecology, Inc.

(US Ecology) in a transaction valued at $ 2.2 billion.

On May 2, 2022, we acquired all outstanding equity of 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.

2 unchanged sentences

The preliminary purchase price allocation for the US Ecology acquisition is reflected in the table above and remains subject to revisions as additional information is obtained about the facts and circumstances that existed at the valuation date.

The preliminary allocation of purchase price, including the value of certain tangible and intangible assets acquired as well as certain leases and environmental liabilities assumed, is based on the best estimates of management and is subject to revision based on the final valuations.

The preliminary allocation of purchase price, including the value of certain tangible and intangible assets acquired as well

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

as certain leases and environmental liabilities assumed, is based on the best estimates of management and is subject to revision based on the final valuations.

We do not expect a step-up in the tax basis of the assets recognized in connection with the US Ecology acquisition, and do not expect the goodwill and intangible assets will be deductible for tax purposes.

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

In July 2022, we made an investment of approximately $ 90 million in a joint venture with a landfill gas to energy developer to construct 39 renewable natural gas projects across the United States.

The agreement provides for additional contributions as certain project milestones are achieved over the next four to five years .

During the three and nine months ended September 30, 2022, we incurred $ 8.7 million and $ 65.4 million, respectively, of acquisition integration and deal costs in connection with the acquisition of US Ecology, which included certain costs to close the acquisition and integrate the business, including stock compensation expense for unvested equity awards at closing as well as severance and change-in-control payments.

In July 2022, we acquired a non-controlling equity interest in a joint venture with a landfill gas-to-energy developer to construct 39 renewable natural gas projects across the United States for approximately $ 88 million.

We also purchased an approximately $ 38 million interest in a landfill gas-to-energy project and subsequently divested of our interest to the joint venture.

The joint venture agreement provides for additional contributions as certain project milestones are achieved over the next four to five years .

The investment is accounted for under the equity method of accounting.

In 2022 and 2021, we acquired non-controlling equity interests in certain limited liability companies that qualified for investment tax credits under Section 48 of the Internal Revenue Code.

In exchange for our non-controlling interests, we made capital contributions of $ 121.0 million and $ 22.7 million, which were recorded to other assets in our June 30, 2022 and 2021 consolidated balance sheets, respectively.

During the three and six months ended June 30, 2022, we reduced the carrying value of these investments by $ 11.9 million and $ 12.2 million, respectively, and during the three and six months ended June 30, 2021, we reduced the carrying value of these investments by $ 12.0 million and $ 25.7 million, respectively, as a result of cash distributions and our share of income and loss pursuant to the terms of the limited liability company agreements.

Additionally, our tax provisions reflect a benefits of approximately $ 24 million and $ 25 million for the three and six months ended June 30, 2022, respectively, due to the tax credits related to these investments.

Our tax provisions reflect a similar benefit of approximately $ 20 million for both the three and six months ended June 30, 2021.

In exchange for our non-controlling interests, we made capital contributions of $ 121.0 million and $ 30.7 million, which were recorded to other assets in our September 30, 2022 and 2021 consolidated balance sheets, respectively.

During the three and nine months ended September 30, 2022, we reduced the carrying value of these investments by $ 49.5 million and $ 61.8 million, respectively, and during the three and nine months ended September 30, 2021, we reduced the carrying value of these investments by $ 10.0 million and $ 35.7 million, respectively, as a result of cash distributions and our share of income and loss pursuant to the terms of the limited liability company agreements.

Additionally, our tax provisions reflect benefits of approximately $ 35 million and $ 60 million for the three and nine months ended September 30, 2022, respectively, due to the tax credits related to these investments.

Our tax provisions reflect a similar benefit of approximately $ 20 million for the nine months ended September 30, 2021.

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

For further discussion of the income tax benefits, refer to Note 11, Income Taxes, in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2021.

Restructuring Charges

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

During the six months ended June 30, 2022 and 2021, we paid $ 8.3 million and $ 8.6 million, respectively, related to these restructuring efforts.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

During the three and nine months ended September 30, 2022, we incurred restructuring charges of $ 6.8 million and $ 18.8 million, respectively, and during the three and nine months ended September 30, 2021, we incurred restructuring charges of $ 4.6 million and $ 11.2 million, respectively, related to the redesign of certain back-office software systems.

During the nine months ended September 30, 2022 and 2021, we paid $ 17.0 million and $ 12.1 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 June 30, 2022

Acquisitions Divestitures Adjustments to Acquisitions Balance as of September 30, 2022

Group 1 $ 6,549.7 $ 58.6 $ — $ ( 2.5 ) $ 6,605.8

Group 2 5,994.2 200.7 ( 3.2 ) 5.7 6,197.4

Corporate entities and other 282.1 1,133.4 — ( 32.3 ) 1,383.2

Group 3 282.1 1,133.3 — ( 24.3 ) 1,391.1

Total $ 12,826.0 $ 1,392.6 $ ( 3.2 ) $ ( 21.1 ) $ 14,194.3

Adjustments to acquisitions during the six months ended June 30, 2022 primarily related to changes in our valuation of fixed assets and certain landfill leases as a result of obtaining new information regarding the acquisitions that closed in 2021.

The preliminary goodwill associated with our acquisition of US Ecology is assigned to our Environmental Solutions operating segment and is included within Corporate entities and other above.

Goodwill by reportable segment as of December 31, 2021 and September 30, 2022 reflects the presentation of Group 3 as a reportable segment.

Prior to the third quarter of 2022, Group 3 was aggregated with Corporate entities and other.

Adjustments to acquisitions during the nine months ended September 30, 2022 primarily related to changes in our valuation of tangible and intangible assets as well as certain landfill leases and environmental liabilities assumed as a result of obtaining new information regarding the acquisitions that closed in 2021.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Other Intangible Assets, Net

4 unchanged sentences

Acquisitions Adjustments

Balance as of June 30, 2022

Balance as of September 30, 2022

Balance as of December 31, 2021

Additions Charged to Expense Adjustments

Balance as of June 30, 2022

Other Intangible Assets, Net as of June 30, 2022

Balance as of September 30, 2022

Other Intangible Assets, Net as of September 30, 2022

Customer relationships

6 unchanged sentences

Prepaid Expenses and Other Current Assets

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

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

Prepaid expenses $ 143.7 $ 85.3

1 unchanged sentence

Income taxes receivable 62.1 173.8

Reinsurance receivable 30.6 31.0

Other non-trade receivables 61.2 32.2

Reinsurance receivable 31.0 31.0

Prepaid fees for cloud-based hosting arrangements, current 14.8 12.9

1 unchanged sentence

Total $ 419.3 $ 410.4

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

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

A summary of other assets as of September 30, 2022 and December 31, 2021 follows:

Operating right-of-use lease assets $ 279.2 $ 255.3

1 unchanged sentence

Deferred compensation plan 108.5 133.5

Deferred contract costs and sales commissions 79.8 80.6

Reinsurance receivable 79.8 79.5

Derivative and hedging assets 114.0 19.7

Reinsurance receivable 82.7 79.5

Deferred contract costs and sales commissions 80.2 80.6

Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements 54.2 43.4

3 unchanged sentences

Total $ 1,046.7 $ 787.6

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

OTHER LIABILITIES

Other Accrued Liabilities

A summary of other accrued liabilities as of June 30, 2022 and December 31, 2021 follows:

A summary of other accrued liabilities as of September 30, 2022 and December 31, 2021 follows:

Accrued payroll and benefits $ 295.1 $ 295.0

8 unchanged sentences

Other Long-Term Liabilities

A summary of other long-term liabilities as of June 30, 2022 and December 31, 2021 follows:

A summary of other long-term liabilities as of September 30, 2022 and December 31, 2021 follows:

Operating right-of-use lease liabilities $ 248.1 $ 239.0

Derivative and hedging liabilities 107.9 50.7

Deferred compensation plan liability 98.8 119.4

Ceded insurance reserves 82.7 79.5

Derivative and hedging liabilities 66.8 50.7

Contingent purchase price and acquisition holdbacks 62.4 64.4

3 unchanged sentences

Total $ 683.9 $ 642.4

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

LANDFILL AND ENVIRONMENTAL COSTS

As of June 30, 2022, we owned or operated 207 active landfills with total available disposal capacity estimated to be 5.1 billion in-place cubic yards.

As of September 30, 2022, we owned or operated 207 active landfills with total available disposal capacity estimated to be 5.0 billion in-place cubic yards.

Additionally, we had post-closure responsibility for 126 closed landfills.

Accrued Landfill and Environmental Costs

A summary of accrued landfill and environmental liabilities as of June 30, 2022 and December 31, 2021 follows:

A summary of accrued landfill and environmental liabilities as of September 30, 2022 and December 31, 2021 follows:

Landfill final capping, closure and post-closure liabilities $ 1,677.5 $ 1,507.3

3 unchanged sentences

Long-term portion $ 2,084.0 $ 1,837.7

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

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 six months ended June 30, 2022 and 2021:

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, 2022 and 2021:

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

4 unchanged sentences

Accretion expense 66.9 61.9

Foreign currency translation ( 0.3 ) —

Asset retirement obligation liabilities, end of period 1,677.5 1,445.1

13 unchanged sentences

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 June 30, 2022 would be approximately $ 375 million higher than the amount recorded.

If we used the reasonably possible high ends of our ranges, our aggregate potential remediation liability as of September 30, 2022 would be approximately $ 376 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.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The following table summarizes the activity in our environmental remediation liabilities for the six months ended June 30, 2022 and 2021:

The following table summarizes the activity in our environmental remediation liabilities for the nine months ended September 30, 2022 and 2021:

Environmental remediation liabilities, beginning of year $ 454.9 $ 462.8

7 unchanged sentences

Bridgeton Landfill.

During the six months ended June 30, 2022, we paid $ 6.8 million related to management and monitoring of the remediation area for our closed Bridgeton Landfill in Missouri.

During the nine months ended September 30, 2022, we paid $ 11.6 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 June 30, 2022, the remediation liability recorded for this site was $ 96.0 million, of which approximately $ 9 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 June 30, 2022.

As of September 30, 2022, the remediation liability recorded for this site was $ 91.2 million, of which approximately $ 4 million is expected to be paid during the remainder of 2022.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

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, 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 June 30, 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.

The carrying value of our credit facilities, finance leases and long-term debt as of September 30, 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.

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Maturity Interest Rate Principal Adjustments Carrying Value Principal Adjustments Carrying Value

42 unchanged sentences

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

dollar LIBOR have permanently or indefinitely ceased to be provided or have been announced to be no longer representative, (ii) June 30, 2023 or (iii) the effective date of an election to opt into a SOFR), the LIBOR rate will be replaced by a forward-looking term rate based on SOFR or a daily rate based on SOFR published on such date.

dollar LIBOR have permanently or indefinitely ceased to be provided or have been announced to be no longer representative, (ii) June 30, 2023 or (iii) the effective date of an election to opt into a SOFR rate, the LIBOR rate will be replaced by a forward-looking term rate based on SOFR or a daily rate based on SOFR published on such date.

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.

2 unchanged sentences

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

We had $ 714.4 million and $ 24.3 million outstanding under our Credit Facility as of June 30, 2022 and December 31, 2021, respectively.

We had $ 350.6 million and $ 341.9 million of letters of credit outstanding under our Credit Facility as of June 30, 2022 and December 31, 2021, respectively.

We also had $ 499.6 million of outstanding borrowings (net of related discount on issuance) under our commercial paper program as of June 30, 2022.

If there is a default under our commercial paper program, we expect to use our Credit Facility to repay any outstanding commercial paper notes.

As a result, availability under our Credit Facility was $ 1,435.0 million and $ 2,633.8 million as of June 30, 2022 and December 31, 2021, respectively.

We had $ 17.1 million and $ 24.3 million outstanding under our Credit Facility as of September 30, 2022 and December 31, 2021, respectively.

We had $ 349.8 million and $ 341.9 million of letters of credit outstanding under our Credit Facility as of September 30, 2022 and December 31, 2021, respectively.

We also had $ 999.0 million of outstanding borrowings (net of related discount on issuance) under our commercial paper program as of September 30, 2022.

In the event of a failed re-borrowing, we currently have availability under our Credit Facility to fund the commercial paper program until it is re-borrowed successfully.

As a result, availability under our Credit Facility was $ 1,633.1 million and $ 2,633.8 million as of September 30, 2022 and December 31, 2021, respectively.

Uncommitted Credit Facility

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.

2 unchanged sentences

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

As of June 30, 2022, we had $ 137.5 million outstanding under our Uncommitted Credit Facility.

As of September 30, 2022, we had $ 60.8 million outstanding under our Uncommitted Credit Facility.

We had no borrowings outstanding as of December 31, 2021.

2 unchanged sentences

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

The current weighted average interest rate is 3.040 %.

We may prepay, without penalty, all or any part of the borrowings under the Term Loan Facility at any time.

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

Commercial Paper Program

In May 2022, we entered into a commercial paper program for the issuance and sale of unsecured commercial paper in an aggregate principal amount not to exceed $ 500.0 million outstanding at any one time.

As of June 30, 2022, we had $ 500.0 million principal value of commercial paper issued and outstanding under the program, with a weighted average interest rate of 1.845 % and weighted average maturity of 24 days.

We maintain capacity under the Credit Facility to support our commercial paper program in the event of a default.

Accordingly, we have classified these borrowings as long-term in our consolidated balance sheet as of June 30, 2022.

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.

Our senior notes and debentures are general unsecured obligations.

Interest is payable semi-annually.

In August 2022, the Commercial Paper Cap was increased to $ 1.0 billion.

As of September 30, 2022, we had $ 1.0 billion principal value of commercial paper issued and outstanding under the program, with a weighted average interest rate of 3.134 % and weighted average maturity of 28 days.

In the event of a failed re-borrowing, we currently have availability under our Credit Facility to fund the commercial paper program until it is re-borrowed successfully.

Accordingly, we have classified these borrowings as long-term in our consolidated balance sheet as of September 30, 2022.

Interest Rate Swap and Lock Agreements

2 unchanged sentences

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

1 unchanged sentence

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

As of June 30, 2022, these swap agreements had a total notional value of $ 300.0 million and mature in May 2023.

As of September 30, 2022, these swap agreements had a

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

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 %.

3 unchanged sentences

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 June 30, 2022 and December 31, 2021, these free-standing derivatives were reflected at their fair value of a $ 0.4 million liability and a $ 3.9 million asset, respectively, and are included in other long-term liabilities and other assets, respectively, in our consolidated balance sheets.

For the three and six months ended June 30, 2022, we recognized losses of $ 1.6 million and $ 4.3 million, respectively, and for the three and six months ended June 30, 2021, we recognized losses of $ 0.8 million and $ 2.0 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 June 30, 2022 and December 31, 2021, the 2013 Interest Rate Swaps that were designated as fair value hedges are reflected at their fair value of a $ 0.5 million liability and a $ 4.7 million asset, respectively, and are included in other long-term liabilities and other assets, respectively, in our consolidated balance sheets.

As of September 30, 2022 and December 31, 2021, these free-standing derivatives were reflected at their fair value of a $ 1.2 million liability and a $ 3.9 million asset, respectively, and are included in other long-term liabilities and other assets, respectively, in our consolidated balance sheets.

For the three and nine months ended September 30, 2022, we recognized losses of $ 0.8 million and $ 5.2 million, respectively, and for the three and nine months ended September 30, 2021, we recognized losses 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, 2022 and December 31, 2021, the 2013 Interest Rate Swaps that were designated as fair value hedges are reflected at their fair value of a $ 1.5 million liability and a $ 4.7 million asset, respectively, and are included in other long-term liabilities and other assets, respectively, 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 $ 1.4 million and $ 2.0 million during the three months ended June 30, 2022 and 2021, respectively, and net interest income of $ 3.2 million and $ 3.9 million during the six months ended June 30, 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 June 30, 2022 and 2021, we recognized gains of $ 1.3 million and $ 1.1 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 $ 1.9 million and $ 1.0 million, respectively, on the related interest rate swaps attributable to changes in the benchmark interest rate.

For the six months ended June 30, 2022 and 2021, we recognized gains of $ 4.0 million and $ 2.6 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 $ 5.2 million and $ 2.4 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 and six months ended June 30, 2022 and 2021 was recorded directly in earnings as an adjustment to interest expense in our consolidated statements of income.

We recognized net interest income of $ 0.4 million and $ 2.0 million during the three months ended September 30, 2022 and 2021, respectively, and net interest income of $ 3.7 million and $ 5.9 million during the nine months ended September 30, 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 September 30, 2022 and 2021, we recognized gains of $ 0.1 million and $ 0.9 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 $ 1.0 million and $ 1.0 million, respectively, on the related interest rate swaps attributable to changes in the benchmark interest rate.

For the nine months ended September 30, 2022 and 2021, we recognized gains of $ 4.1 million and $ 3.5 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 $ 6.2 million and $ 3.3 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 and nine months ended September 30, 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.

5 unchanged sentences

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).

As of June 30, 2022 and December 31, 2021, our previously terminated interest rate locks were recorded as components of accumulated other comprehensive loss of $ 23.6 million and $ 25.8 million, respectively, net of tax.

As of September 30, 2022 and December 31, 2021, our previously terminated interest rate locks were recorded as components of accumulated other comprehensive loss of $ 22.6 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.

For the three and nine months ended September 30, 2022, we recognized losses, net of tax, of $ 1.1 million and $ 3.2 million, respectively, as a result of this amortization.

For the three and nine months ended September 30, 2021, we recognized losses of $ 1.2 million and $ 3.5 million, respectively.

Over the next 12 months, we expect to amortize approximately $ 4.0 million, net of tax, from accumulated other comprehensive loss to interest expense as a yield adjustment of our senior notes.

In connection with our acquisition of US Ecology, we novated an acquired interest rate swap agreement (the 2022 Interest Rate Swap) with an initial effective date of March 6, 2020 and an initial notional amount of $ 500.0 million relative to our Term Loan Facility.

In connection with our acquisition of US Ecology, in the second quarter of 2022, we acquired and novated a floating-to-fixed interest rate swap agreement (the 2022 Interest Rate Swap) with an initial effective date of March 6, 2020 and an initial notional amount of $ 500 million relative to our Term Loan Facility.

The interest rate swap matures in November 2026.

The goal was to reduce overall borrowing costs.

Under the terms of the acquired agreement, we pay interest at a fixed interest rate of 0.832 % and received interest at floating rates based on

Under the terms of the acquired agreement, we pay interest at a fixed interest rate of 0.832 % and received interest at floating rates based on changes in LIBOR.

The interest rate swap is designated as a cash flow hedge.

In May 2022, following the closing of the acquisition, we amended the reference rate from a floating rate based on LIBOR to a

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

changes in LIBOR.

The interest rate swap is designated as a cash flow hedge.

In May 2022, following the closing of the acquisition, we amended the reference rate from a floating rate based on LIBOR to a SOFR rate.

In accordance with ASU 2020-04, the amendment of the reference rate did not result in dedesignation of the cash flow hedge.

1 unchanged sentence

The fair value of our floating-to-fixed interest rate swap 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).

As of June 30, 2022, the 2022 Interest Rate Swap was recorded at its fair value of $ 27.7 million and is included in other assets in our consolidated balance sheets.

Total unrealized loss recognized in accumulated other comprehensive loss for the 2022 Interest Rate Swap was $ 1.1 million, net of tax, for the three months ended June 30, 2022.

As of September 30, 2022, the 2022 Interest Rate Swap was recorded at its fair value of $ 38.5 million and is included in other assets in our consolidated balance sheets.

For the three and nine months ended September 30, 2022, we recognized unrealized gains of $ 9.1 million and $ 8.1 million, respectively, in accumulated other comprehensive income for the 2022 Interest Rate Swap.

For both the three and nine months ended September 30, 2022, we recognized gains, net of tax, of $ 1.1 million on the change in fair value of the 2022 Interest Rate Swap.

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

As of September 30, 2022, the 2022 Interest Rate Swap was recorded as a component of accumulated other income of $ 7.0 million, net of tax.

Over the next 12 months, we expect to amortize approximately $ 2 million, net of tax, from accumulated other comprehensive income as an offset to interest expense in the period in which payments are settled.

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.

5 unchanged sentences

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 June 30, 2022 and December 31, 2021, the fair values of the 2019 Extended Interest Rate Locks were liabilities of $ 0.4 million and $ 20.9 million, respectively, which were included in other long-term liabilities in our consolidated balance sheets.

As of June 30, 2022, the fair value of the 2020 Extended Interest Rate Locks were assets of $ 31.8 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 June 30, 2022, the fair value of the 2019 Offsetting Interest Rate Swap was a liability of $ 9.6 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 June 30, 2022 and December 31, 2021, the fair value of the 2020 Offsetting Interest Rate Swap was a liability of $ 55.9 million and $ 0.8 million, respectively, which were included in other long-term liabilities in our consolidated balance sheets.

For the three and six months ended June 30, 2022, we recognized gains of $ 21.7 million and $ 74.8 million, respectively, on the change in fair value of the Extended Interest Rate Locks with offsetting losses of $ 21.3 million and $ 73.1 million, respectively, on the change in fair value of the Offsetting Interest Rate Swaps.

For the three and six months ended June 30, 2021, we recognized losses of $ 18.2 million and gains of $ 28.9 million, respectively, on the change in fair value of the Extended Interest Rate Locks with offsetting gains of $ 17.6 million and offsetting losses of $ 29.1 million, respectively, on the change in fair value of the Offsetting Interest Rate Swaps.

As of September 30, 2022 and December 31, 2021, the fair values of the 2019 Extended Interest Rate Locks was an asset of $ 11.4 million and a liability of $ 20.9 million, respectively, which were included in other assets and other long-term liabilities, respectively, in our consolidated balance sheets.

As of September 30, 2022, the fair value of the 2020 Extended Interest Rate Locks were an asset of $ 64.2 million and a liability of $ 29.0 million, which were included in other assets and other long-term liabilities, respectively, in our consolidated balance sheet.

As of September 30, 2022 and December 31, 2021 the fair value of the 2019 Offsetting Interest Rate Swap was a liability of $ 19.1 million and an asset of $ 11.1 million, which were included in other long-term liabilities and other assets, respectively, in our consolidated balance sheet.

As of September 30, 2022 and December 31, 2021, the fair value of the 2020 Offsetting Interest Rate Swap was a liability of $ 86.1 million and $ 0.8 million, respectively, which were included in other long-term liabilities in our consolidated balance sheets.

For the three and nine months ended September 30, 2022, we recognized gains of $ 40.2 million and $ 115.0 million, respectively, on the change in fair value of the Extended Interest Rate Locks with offsetting losses of $ 39.7 million and $ 112.8 million, respectively, on the change in fair value of the Offsetting Interest Rate Swaps.

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.

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 June 30, 2022 and December 31, 2021 we had $ 1,181.8 million and $ 1,181.5 million of certain variable rate tax-exempt financings outstanding respectively, with maturities ranging from 2023 to 2051.

As of September 30, 2022 and December 31, 2021 we had $ 1,181.9 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 $ 27.7 million and $ 17.2 million was incurred and reimbursed to us as of June 30, 2022 and December 31, 2021, respectively .

As of June 30, 2022 and

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 $ 30.0 million and $ 17.2 million

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

December 31, 2021 , we had $ 121.5 million and $ 139.0 million, respectively, of restricted cash and marketable securities, of which $ 2.0 million and $ 12.4 million, respectively, represented proceeds from the issuance of the tax-exempt bonds.

was incurred and reimbursed to us as of September 30, 2022 and December 31, 2021, respectively .

As of September 30, 2022 and December 31, 2021 , we had $ 121.7 million and $ 139.0 million , respectively, of restricted cash and marketable securities.

As of December 31, 2021, $ 12.4 million of the restricted cash and marketable securities balance 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.

2 unchanged sentences

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 June 30, 2022 and December 31, 2021.

Accordingly, we classified these borrowings as long-term in our consolidated balance sheets as of September 30, 2022 and December 31, 2021.

Finance Leases

We had finance lease liabilities of $ 269.3 million and $ 249.4 million as of June 30, 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 and six months ended June 30, 2022 was 22.2 % and 23.8 %, respectively.

Our effective tax rate, exclusive of non-controlling interests, for the three and six months ended June 30, 2021 was 22.4 % and 24.1 %, respectively.

Net cash paid for income taxes was $ 78.9 million and $ 54.3 million for the six months ended June 30, 2022 and 2021, respectively.

We recorded approximately $ 151 million of current and deferred income taxes as part of our preliminary purchase price allocation for our acquisition of US Ecology.

This allocation is subject to change until we finalize our valuations and other estimates.

We had finance lease liabilities of $ 273.9 million and $ 249.4 million as of September 30, 2022 and December 31, 2021, respectively, with maturities ranging from 2023 to 2063.

Our effective tax rate, exclusive of non-controlling interests, for the three and nine months ended September 30, 2022 was 17.9 % and 21.8 %, respectively.

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.

Net cash paid for income taxes was $ 90.5 million and $ 182.1 million for the nine months ended September 30, 2022 and 2021, respectively.

On August 16, 2022, the Inflation Reduction Act ("IRA") was signed into law.

The IRA, among other things, implements a 15% minimum tax on financial statement income of certain large corporations, a 1% excise tax on stock repurchases and extends, enhances, and creates several tax incentives to promote clean energy.

While we continue to evaluate the IRA, at present, we do not believe it will have a material effect on our consolidated financial statements.

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

4 unchanged sentences

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

As of June 30, 2022, the valuation allowance associated with our state loss carryforwards was approximately $ 43 million.

As a result of the acquisition of US Ecology as of June 30, 2022, the valuation allowance associated with our foreign jurisdiction tax credits was approximately $ 4 million.

As of September 30, 2022, the valuation allowance associated with our state loss carryforwards was approximately $ 38 million.

As a result of the acquisition of US Ecology as of September 30, 2022, the valuation allowance associated with our foreign jurisdiction tax credits was approximately $ 4 million.

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

1 unchanged sentence

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 for our estimate of the final outcome of the examinations.

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

The tax years 2017 through 2021 remain subject to examination in our foreign jurisdictions.

The 2017 through 2021 state tax returns are subject to examination by state tax authorities.

Thus, to provide for certain potential tax exposures, we maintain liabilities for uncertain tax positions for our estimate of the final outcome of these examinations.

The federal statute of limitations applicable to our federal tax returns has passed for all years prior to 2015.

We are currently under examination by the Internal Revenue Service (IRS) for tax years 2015 through 2018.

2 unchanged sentences

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 June 30, 2022, we are unable to estimate the resolution of our gross unrecognized benefits over the next 12 months.

As of September 30, 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 June 30, 2022, we accrued a liability for penalties of $ 0.3 million and a liability for interest (including interest on penalties) of $ 14.3 million related to our uncertain tax positions.

As of September 30, 2022, we accrued a liability for penalties of $ 0.3 million and a liability for interest (including interest on penalties) of $ 14.6 million related to our uncertain tax positions.

REPUBLIC SERVICES, INC.

10 unchanged sentences

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

Stock repurchase activity during the three and six months ended June 30, 2022 and 2021 follows (in millions, except per share amounts):

Three Months Ended June 30, Six Months Ended June 30,

Stock repurchase activity during the three and nine months ended September 30, 2022 and 2021 follows (in millions, except per share amounts):

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

2022 2021 2022 2021

2 unchanged sentences

Weighted average cost per share $ — $ 117.78 $ 124.02 $ 113.79

As of June 30, 2022, no repurchased shares were pending settlement.

As of June 30, 2021, 0.5 million repurchased shares were pending settlement.

As of June 30, 2021, $ 52.1 million of share repurchases were unpaid and included within other accrued liabilities.

As of June 30, 2022, the remaining authorized purchase capacity under our October 2020 repurchase program was $ 1.5 billion.

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

Cash dividends declared were $ 290.6 million for the six months ended June 30, 2022.

As of June 30, 2022, we recorded a quarterly dividend payable of $ 145.3 million to shareholders of record at the close of business on July 1, 2022.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

As of September 30, 2022, no repurchased shares were pending settlement.

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

In July 2022, our Board of Directors approved a quarterly dividend of $ 0.495 per share.

Cash dividends declared were $ 447.0 million for the nine months ended September 30, 2022.

As of September 30, 2022, we recorded a quarterly dividend payable of $ 156.4 million to shareholders of record at the close of business on October 3, 2022.

Earnings per Share

3 unchanged sentences

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

Earnings per share for the three and six months ended June 30, 2022 and 2021 are calculated as follows (in thousands, except per share amounts):

Three Months Ended June 30, Six Months Ended June 30,

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Earnings per share for the three and nine months ended September 30, 2022 and 2021 are calculated as follows (in thousands, except per share amounts):

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

2022 2021 2022 2021

15 unchanged sentences

Diluted earnings per share $ 1.32 $ 1.10 $ 3.60 $ 3.06

During each of the three and six months ended June 30, 2022 and 2021, there were less than 0.1 million antidilutive securities outstanding.

During each of the three and nine months ended September 30, 2022 and 2021, there were less than 0.1 million antidilutive securities outstanding.

REPUBLIC SERVICES, INC.

1 unchanged sentence

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT

A summary of changes in accumulated other comprehensive loss, net of tax, by component, for the six months ended June 30, 2022 follows:

A summary of changes in accumulated other comprehensive income (loss), net of tax, by component, for the nine months ended September 30, 2022 follows:

Cash Flow Hedges Defined Benefit Pension Items Foreign Currency Translation Total

2 unchanged sentences

Other comprehensive income (loss) before reclassifications 8.1 — ( 6.2 ) 1.9

Amounts reclassified from accumulated other comprehensive income 2.2 — — 2.2

Net current period other comprehensive income 1.1 — 0.1 1.2

Balance as of June 30, 2022 $ ( 24.7 ) $ 11.2 $ 0.1 $ ( 13.4 )

A summary of reclassifications out of accumulated other comprehensive loss for the three and six months ended June 30, 2022 and 2021 follows:

Three Months Ended June 30, Six Months Ended June 30,

Amounts reclassified from accumulated other comprehensive loss 2.1 — — 2.1

Net current period other comprehensive income (loss) 10.2 — ( 6.2 ) 4.0

Balance as of September 30, 2022

$ ( 15.6 ) $ 11.2 $ ( 6.2 ) $ ( 10.6 )

A summary of reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2022 and 2021 follows:

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

2022 2021 2022 2021

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

Loss on cash flow hedges:

(Loss) gain on cash flow hedges:

Terminated interest rate locks $ ( 1.5 ) $ ( 1.6 ) $ ( 4.4 ) $ ( 4.7 ) Interest expense

11 unchanged sentences

FINANCIAL INSTRUMENTS

The effect of our hedging relationships and derivative instruments on the consolidated statements of income for the three and six months ended June 30, 2022 and 2021 follows (in millions):

The effect of our hedging relationships and derivative instruments on the consolidated statements of income for the three and nine months ended September 30, 2022 and 2021 follows (in millions):

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

Three Months Ended June 30, Six Months Ended June 30,

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

2022 2021 2022 2021

6 unchanged sentences

Net periodic (loss) earnings $ ( 0.9 ) $ ( 0.1 ) $ ( 2.1 ) $ 0.2

Loss on cash flow hedging relationships:

(Loss) gain on cash flow hedging relationships:

Amount of (loss) gain reclassified from accumulated other comprehensive loss into earnings, net of tax

Interest rate swap locks $ ( 1.1 ) $ ( 1.2 ) $ ( 3.2 ) $ ( 3.5 )

Amount of loss reclassified from accumulated other comprehensive loss into income, net of tax $ ( 1.1 ) $ ( 1.2 ) $ ( 2.2 ) $ ( 2.3 )

2022 Interest Rate Swap $ 1.1 $ — $ 1.1 $ —

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

10 unchanged sentences

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 June 30, 2022 and December 31, 2021, our assets and liabilities that are measured at fair value on a recurring basis include the following:

June 30, 2022

As of September 30, 2022 and December 31, 2021, our assets and liabilities that are measured at fair value on a recurring basis include the following:

September 30, 2022

Carrying Amount Total Quoted

22 unchanged sentences

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

The carrying value of our total debt was $ 11.9 billion and $ 9.6 billion as of June 30, 2022 and December 31, 2021, respectively, and the fair value of our total debt was $ 11.4 billion and $ 10.3 billion, respectively.

The carrying value of our total debt was $ 11.6 billion and $ 9.6 billion as of September 30, 2022 and December 31, 2021, respectively, and the fair value of our total debt was $ 10.8 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 June 30, 2022 and December 31, 2021.

The fair value estimates were based on Level 2 inputs of the fair value hierarchy as of September 30, 2022 and December 31, 2021.

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

1 unchanged sentence

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 June 30, 2022, the Sonoma contingent consideration represents the fair value of $ 61.4 million payable to the County of Sonoma based on the achievement of future annual tonnage targets through the expected remaining

As of September 30, 2022, the Sonoma contingent consideration represents the fair value of $ 60.6

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

capacity of the landfill.

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 six months ended June 30, 2022, the activity in the contingent consideration liability included accretion, which was offset by concession payments made in the ordinary course of business.

During the nine months ended September 30, 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

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.

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

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.

Our Environmental Solutions operating segment, which provides environmental solutions for daily operations of industrial, petrochemical and refining facilities is aggregated with Corporate entities and other as it only represents approximately 6.2 % of our consolidated revenue for the six months ended June 30, 2022.

Our Environmental Solutions operating segment included the financial results of US Ecology following our acquisition of the business on May 2, 2022.

Summarized financial information concerning our reportable segments for the three and six months ended June 30, 2022 and 2021 follows:

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

Three Months Ended June 30, 2022

Group 1 $ 1,827.5 $ ( 279.0 ) $ 1,548.4 $ 145.9 $ 415.1 $ 123.3 $ 12,211.8

Group 2 1,768.8 ( 241.9 ) 1,526.9 148.7 328.4 111.8 10,225.8

Corporate entities and other 361.0 ( 22.7 ) 338.3 65.4 ( 153.9 ) 78.1 5,775.3

Total $ 3,957.3 $ ( 543.6 ) $ 3,413.6 $ 360.0 $ 589.6 $ 313.2 $ 28,212.9

Three Months Ended June 30, 2021

Group 1 $ 1,668.3 $ ( 275.0 ) $ 1,393.3 $ 138.7 $ 379.8 $ 149.3 $ 11,946.7

Group 2 1,576.9 ( 235.0 ) 1,341.9 138.0 283.6 108.8 9,649.3

Corporate entities and other 88.3 ( 11.2 ) 77.1 47.0 ( 145.5 ) 19.5 2,326.1

Total $ 3,333.5 $ ( 521.2 ) $ 2,812.3 $ 323.7 $ 517.9 $ 277.6 $ 23,922.1

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

Six Months Ended June 30, 2022

Group 1 $ 3,529.7 $ ( 540.8 ) $ 2,988.8 $ 289.6 $ 787.9 $ 233.8 $ 12,211.8

Group 2 3,367.3 ( 459.2 ) 2,908.1 290.9 647.8 203.1 10,225.8

Corporate entities and other 526.4 ( 39.6 ) 486.8 111.5 ( 285.5 ) 210.3 5,775.3

Total $ 7,423.4 $ ( 1,039.6 ) $ 6,383.7 $ 692.0 $ 1,150.2 $ 647.2 $ 28,212.9

Six Months Ended June 30, 2021

Group 1 $ 3,215.9 $ ( 524.0 ) $ 2,691.9 $ 270.8 $ 731.3 $ 274.1 $ 11,946.7

Group 2 3,000.7 ( 436.8 ) 2,563.9 266.8 545.4 191.4 9,649.3

Corporate entities and other 174.0 ( 21.6 ) 152.4 88.7 ( 266.4 ) 143.1 2,326.1

Total $ 6,390.6 $ ( 982.4 ) $ 5,408.2 $ 626.3 $ 1,010.3 $ 608.6 $ 23,922.1

Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3.

Group 1 is our recycling and solid waste business operating in geographic areas located in the western United States.

Group 2 is our recycling and solid waste business operating in geographic areas located in the southeastern and mid-western United States, and the eastern seaboard of the United States.

Group 3 is our environmental solutions business in geographic areas located across the United States and Canada.

These groups are presented below as our reportable segments, which each provide integrated environmental services, including but not limited to collection, transfer, recycling, and disposal.

Prior to the third quarter of 2022, our environmental services operating segment, now referred to as our Group 3 reportable segment, was aggregated with Corporate entities and other.

Summarized financial information concerning our reportable segments for the three months ended September 30, 2022 and 2021 follows:

Group 1 Group 2 Recycling & Solid Waste Subtotal Group 3

(Environmental Solutions) Corporate entities and other Total

Three Months Ended September 30, 2022

Gross Revenue $ 1,876.2 $ 1,803.6 $ 3,679.8 $ 411.0 $ 62.4 $ 4,153.2

Intercompany Revenue ( 285.2 ) ( 242.8 ) ( 528.0 ) ( 11.3 ) ( 16.1 ) ( 555.4 )

Net Revenue $ 1,591.0 $ 1,560.8 $ 3,151.8 $ 399.7 $ 46.3 $ 3,597.8

Gross Adjusted EBITDA $ 506.6 $ 441.1 $ 947.7 $ 89.2 $ 14.4 $ 1,051.3

Adjusted EBITDA allocations 15.0 14.0 29.0 ( 14.6 ) ( 14.4 ) —

Net Adjusted EBITDA $ 521.6 $ 455.1 $ 976.7 $ 74.6 $ — $ 1,051.3

Adjusted EBITDA margin 32.3 % 28.7 % 30.5 % 18.7 % — % 29.2 %

Capital Expenditures $ 199.1 $ 140.2 $ 339.3 $ 35.2 $ ( 0.5 ) $ 374.0

Total Assets $ 12,199.9 $ 10,233.8 $ 22,433.7 $ 3,991.7 $ 1,975.6 $ 28,401.0

Three Months Ended September 30, 2021

Gross Revenue $ 1,719.5 $ 1,626.5 $ 3,346.0 $ 60.2 $ 55.1 $ 3,461.3

Intercompany Revenue ( 277.9 ) ( 238.5 ) ( 516.4 ) ( 3.2 ) ( 7.8 ) ( 527.4 )

Net Revenue $ 1,441.6 $ 1,388.0 $ 2,829.6 $ 57.0 $ 47.3 $ 2,933.9

Gross Adjusted EBITDA $ 481.8 $ 389.7 $ 871.5 $ 12.8 $ 10.7 $ 895.0

Adjusted EBITDA allocations 5.6 5.1 10.7 — ( 10.7 ) —

Net Adjusted EBITDA $ 487.4 $ 394.8 $ 882.2 $ 12.8 $ — $ 895.0

Adjusted EBITDA margin 33.2 % 28.0 % 30.7 % 22.5 % — % 30.5 %

Capital Expenditures $ 144.3 $ 141.1 $ 285.4 $ 9.3 $ 0.9 $ 295.6

Total Assets $ 12,018.7 $ 9,723.4 $ 21,742.1 $ 852.2 $ 1,834.6 $ 24,428.9

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Summarized financial information concerning our reportable segments for the nine months ended September 30, 2022 and 2021 follows:

Group 1 Group 2 Recycling & Solid Waste Subtotal Group 3 Corporate entities and other Total

Nine Months Ended September 30, 2022

Gross Revenue $ 5,406.0 $ 5,170.9 $ 10,576.9 $ 827.8 $ 171.9 $ 11,576.6

Intercompany Revenue ( 826.1 ) ( 702.0 ) ( 1,528.1 ) ( 32.8 ) ( 34.2 ) ( 1,595.1 )

Net Revenue $ 4,579.9 $ 4,468.9 $ 9,048.8 $ 795.0 $ 137.7 $ 9,981.5

Gross Adjusted EBITDA $ 1,488.7 $ 1,274.1 $ 2,762.8 $ 163.0 $ 38.5 $ 2,964.3

Adjusted EBITDA allocations 32.4 30.0 62.4 ( 23.9 ) ( 38.5 ) —

Net Adjusted EBITDA $ 1,521.1 $ 1,304.1 $ 2,825.2 $ 139.1 $ — $ 2,964.3

Adjusted EBITDA margin 32.7 % 28.8 % 30.8 % 17.5 % — % 29.7 %

Capital Expenditures $ 380.7 $ 325.2 $ 705.9 $ 80.4 $ 138.5 $ 924.8

Total Assets $ 12,199.9 $ 10,233.8 $ 22,433.7 $ 3,991.7 $ 1,975.6 $ 28,401.0

Nine Months Ended September 30, 2021

Gross Revenue $ 4,935.4 $ 4,626.1 $ 9,561.5 $ 136.8 $ 153.6 $ 9,851.9

Intercompany Revenue ( 801.9 ) ( 674.7 ) ( 1,476.6 ) ( 10.8 ) ( 22.3 ) ( 1,509.7 )

Net Revenue $ 4,133.5 $ 3,951.4 $ 8,084.9 $ 126.0 $ 131.3 $ 8,342.2

Gross Adjusted EBITDA $ 1,383.8 $ 1,111.3 $ 2,495.1 $ 30.3 $ 28.0 $ 2,553.4

Adjusted EBITDA allocations 14.7 13.3 28.0 — ( 28.0 ) —

Net Adjusted EBITDA $ 1,398.5 $ 1,124.6 $ 2,523.1 $ 30.3 $ — $ 2,553.4

Adjusted EBITDA margin 33.3 % 28.0 % 30.7 % 24.1 % — % 30.6 %

Capital Expenditures $ 420.6 $ 341.9 $ 762.5 $ 14.9 $ 126.8 $ 904.2

Total Assets $ 12,018.7 $ 9,723.4 $ 21,742.1 $ 852.2 $ 1,834.6 $ 24,428.9

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

Capital expenditures for Corporate entities and other primarily include vehicle inventory acquired but not yet assigned to operating locations and facilities.

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

National Accounts revenue included in Corporate entities and other represents the portion of revenue generated from nationwide and regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local operators.

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

Revenue and overhead costs of Corporate entities and other are primarily allocated to our Group 1 and Group 2 reportable segments as we continue to integrate the acquisitions included in our Group 3 reportable segment.

Net Adjusted EBITDA reflects the allocation of Gross Adjusted EBITDA from Corporate entities and other to our reportable segments.

As presented in the tables below, Adjusted EBITDA reflects certain adjustments for US Ecology deal and integration costs, losses on equity method investments, gains on business divestitures, restructuring expenses, withdrawal costs from multi-employer pension funds, and accelerated vesting of compensation expense related to the 2021 CEO transition.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The following table calculates EBITDA and EBITDA margin for the three and nine months ended September 30, 2022 and 2021 (in millions of dollars and as a percentage of revenue):

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

2022 2021 2022 2021

Net income attributable to Republic Services, Inc.

$ 416.9 11.6 % $ 350.3 11.9 % $ 1,140.8 11.4 % $ 977.3 11.7 %

Net income (loss) attributable to noncontrolling interests — 0.5 ( 0.2 ) 1.9

Provision for income taxes 90.9 119.9 317.5 319.0

Other expense (income), net 0.3 0.9 6.5 ( 0.6 )

Interest income ( 0.8 ) ( 0.6 ) ( 2.0 ) ( 2.0 )

Interest expense 105.2 78.1 282.7 234.9

Depreciation, amortization and depletion 353.9 301.3 1,001.8 886.5

Accretion 22.8 20.8 66.9 61.9

EBITDA and EBITDA margin $ 989.2 27.5 % $ 871.2 29.7 % $ 2,814.0 28.2 % $ 2,478.9 29.7 %

The following table calculates adjusted EBITDA and adjusted EBITDA margin for the three and nine months ended September 30, 2022 and 2021 (in millions of dollars and as a percentage of revenue):

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

2022 2021 2022 2021

EBITDA $ 989.2 27.5 % $ 871.2 29.7 % $ 2,814.0 28.2 % $ 2,478.9 29.7 %

Loss from unconsolidated equity method investment 51.8 15.1 69.2 44.0

Withdrawal costs - multiemployer pension funds — — 2.2 —

Restructuring charges 6.8 4.6 18.8 11.2

Gain on business divestitures and impairments, net ( 5.2 ) — ( 5.3 ) ( 0.2 )

US Ecology, Inc.

acquisition integration and deal costs 8.7 — 65.4 —

Accelerated vesting of compensation expense for CEO transition — 4.1 — 19.5

Total adjustments 62.1 23.8 150.3 74.5

Adjusted EBITDA and adjusted EBITDA margin $ 1,051.3 29.2 % $ 895.0 30.5 % $ 2,964.3 29.7 % $ 2,553.4 30.6 %

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 six months ended June 30, 2022 and 2021 (in millions of dollars and as a percentage of revenue):

Three Months Ended June 30, Six Months Ended June 30,

The following table disaggregates our revenue by service line for the three and nine months ended September 30, 2022 and 2021 (in millions of dollars and as a percentage of revenue):

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

2022 2021 2022 2021

27 unchanged sentences

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

Environmental solutions revenue includes revenue generated by US Ecology following its acquisition on May 2, 2022.

Environmental solutions revenue includes revenue generated by US Ecology following our acquisition of the business on May 2, 2022.

The factors that impact the timing and amount of revenue recognized for each service line may vary based on the nature of the service performed.

2 unchanged sentences

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 six months ended June 30, 2022 when the service was performed.

Substantially all of the deferred revenue recognized as of December 31, 2021 was recognized as revenue during the nine months ended September 30, 2022 when the service was performed.

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

10 unchanged sentences

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 June 30, 2022 and December 31, 2021, we recognized $ 79.8 million and $ 80.6 million, respectively, of deferred contract costs and capitalized sales commissions.

During the three and six months ended June 30, 2022, we amortized $ 3.5 million and $ 6.7 million, respectively, of capitalized sales commissions to selling, general and administrative expenses and we amortized $ 1.5 million and $ 3.0 million, respectively, of other deferred contract costs as a reduction of revenue.

During the three and six months ended June 30, 2021, we amortized $ 3.2 million and $ 6.4 million, respectively, of capitalized sales commissions to selling, general and administrative expenses and we amortized $ 1.6 million and $ 3.1 million, respectively, of other deferred contract costs as a reduction of revenue.

As of September 30, 2022 and December 31, 2021, we recognized $ 80.2 million and $ 80.6 million, respectively, of deferred contract costs and capitalized sales commissions.

During the three and nine months ended September 30, 2022, we amortized $ 3.2 million and $ 10.0 million, respectively, of capitalized sales commissions to selling, general and administrative expenses and we amortized $ 1.4 million and $ 4.4 million, respectively, of other deferred contract costs as a reduction of revenue.

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.

Credit Losses

7 unchanged sentences

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 six months ended June 30, 2022 and 2021:

The following table reflects the activity in our allowance for doubtful accounts for the nine months ended September 30, 2022 and 2021:

Balance at beginning of year $ 38.5 $ 34.7

12 unchanged sentences

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

We have recorded an aggregate accrual of approximately $ 14 million relating to our outstanding legal proceedings as of June 30, 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 have recorded an aggregate accrual of approximately $ 14 million relating to our outstanding legal proceedings as of September 30, 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

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

we accrue for all probable and reasonably estimable losses.

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 $ 11 million higher than the amount recorded as of June 30, 2022.

If we had used the high ends of such ranges, our aggregate potential liability would be approximately $ 7 million higher than the amount recorded as of September 30, 2022.

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:

June 30, 2022 December 31, 2021 June 30, 2021 December 31, 2020

September 30, 2022 December 31, 2021 September 30, 2021 December 31, 2020

Cash and cash equivalents $ 81.4 $ 29.0 $ 40.1 $ 38.2

4 unchanged sentences

The following table summarizes our restricted cash and marketable securities:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Financing proceeds $ — $ 12.4

7 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