What changed in this filing

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Item 1. Financial Statements

2025-04-25 compared with 2024-10-30 · 211 added, 385 removed, 616 unchanged (49% of the section changed)

3 unchanged sentences

(in millions, except per share data)

September 30, December 31,

March 31, December 31,

Current assets:

1 unchanged sentence

Accounts receivable, less allowance for doubtful accounts and other of $ 67 and $ 74 , respectively

1,847.5 1,768.4

Prepaid expenses and other current assets 384 511

42 unchanged sentences

(in millions, except per share data)

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

2024 2023 2024 2023

Three Months Ended March 31,

Revenue $ 4,009 $ 3,862

Cost of operations 2,314 2,283

Depreciation, amortization and depletion 422.0 382.3 1,234.2 1,099.4

Depreciation, depletion and amortization 434 399

Accretion 28 27

Selling, general and administrative 427 414

Loss (gain) on business divestitures and impairments, net 0.5 ( 1.5 ) ( 0.9 ) ( 1.5 )

Gain on business divestitures and impairments, net ( 2 ) —

Restructuring charges 4 6

1 unchanged sentence

Interest expense ( 140 ) ( 139 )

Loss on extinguishment of debt ( 2.4 ) — ( 2.4 ) ( 0.2 )

(Loss) income from unconsolidated equity method investments ( 73.4 ) 2.8 ( 116.0 ) 0.2

Loss from unconsolidated equity method investments ( 12 ) ( 9 )

Interest income 2 1

4 unchanged sentences

Net income attributable to non-controlling interests in consolidated subsidiary

( 0.2 ) ( 0.1 ) ( 0.5 ) ( 0.3 )

Net income attributable to Republic Services, Inc.

$ 565.7 $ 480.2 $ 1,531.0 $ 1,291.4

Basic earnings per share attributable to Republic Services, Inc.

6 unchanged sentences

Weighted average common and common equivalent shares outstanding

314.4 316.6 315.1 317.0

Cash dividends per common share $ 0.580 $ 0.535

3 unchanged sentences

(in millions)

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

2024 2023 2024 2023

Three Months Ended March 31,

Net income $ 495 $ 454

Other comprehensive income (loss), net of tax

Hedging activity:

Realized loss (income) reclassified into earnings 0.5 ( 2.3 ) ( 8.4 ) ( 7.1 )

Unrealized gain — 4.1 6.4 16.6

Pension activity:

Change in funded status of pension plan obligations

( 7.8 ) — ( 7.8 ) 0.2

Foreign currency activity:

Unrealized (loss) gain on foreign currency translation ( 2.2 ) 2.4 3.3 ( 0.1 )

Other comprehensive income (loss), net of tax ( 9.5 ) 4.2 ( 6.5 ) 9.6

Other comprehensive (loss) income, net of tax ( 5 ) 7

Comprehensive income 490 461

1 unchanged sentence

Comprehensive income attributable to Republic Services, Inc.

$ 556.2 $ 484.4 $ 1,524.5 $ 1,301.0

The accompanying notes are an integral part of these statements.

9 unchanged sentences

313 $ 3 $ 1,767 $ 9,774 ( 1 ) $ ( 113 ) $ ( 26 ) $ 2 $ 11,407

Net income (loss) — — — 453.8 — — — ( 0.1 ) 453.7

Other comprehensive income — — — — — — 6.8 — 6.8

Cash dividends declared — — — ( 168.5 ) — — — — ( 168.5 )

Issuances of common stock 0.5 — 3.2 — ( 0.2 ) ( 28.5 ) — — ( 25.3 )

Stock-based compensation — — 12.0 ( 1.3 ) — — — — 10.7

Distributions paid — — — — — — — ( 0.3 ) ( 0.3 )

Balance as of March 31, 2024

321.2 3.2 2,916.0 8,717.9 ( 6.3 ) ( 812.0 ) ( 5.3 ) 0.8 10,820.6

Net income — — — 495 — — — — 495

4 unchanged sentences

Purchase of common stock for treasury — — — — — ( 45 ) — — ( 45 )

Balance as of June 30, 2024

321.2 3.2 2,932.2 9,060.7 ( 7.2 ) ( 981.9 ) ( 9.1 ) 1.2 11,006.3

Net income — — — 565.7 — — — 0.2 565.9

Other comprehensive loss — — — — — — ( 9.5 ) — ( 9.5 )

Cash dividends declared — — — ( 181.7 ) — — — — ( 181.7 )

Issuances of common stock 0.1 — 3.8 — — ( 0.5 ) — — 3.3

Stock-based compensation — — 9.9 ( 0.8 ) — — — — 9.1

Purchase of common stock for treasury — — — — ( 0.8 ) ( 163.2 ) — — ( 163.2 )

Balance as of September 30, 2024

Balance as of March 31, 2025

313 $ 3 $ 1,784 $ 10,087 ( 1 ) $ ( 180 ) $ ( 31 ) $ 2 $ 11,665

13 unchanged sentences

321 $ 3 $ 2,916 $ 8,718 ( 6 ) $ ( 812 ) $ ( 5 ) $ 1 $ 10,821

Net income — — — 427.4 — — — 0.2 427.6

Other comprehensive income — — — — — — 2.6 — 2.6

Cash dividends declared — — — ( 156.6 ) — — — — ( 156.6 )

Issuances of common stock 0.1 — 4.5 — — ( 0.5 ) — — 4.0

Stock-based compensation — — 10.6 ( 0.8 ) — — — — 9.8

Balance as of June 30, 2023

320.7 3.2 2,873.5 7,852.7 ( 4.3 ) ( 519.0 ) ( 6.7 ) 1.0 10,204.7

Net income — — — 480.2 — — — 0.1 480.3

Other comprehensive income — — — — — — 4.2 — 4.2

Cash dividends declared — — — ( 168.5 ) — — — — ( 168.5 )

Issuances of common stock — — 3.1 — — ( 0.4 ) — — 2.7

Stock-based compensation — — 11.0 ( 0.9 ) — — — — 10.1

Purchase of common stock for treasury — — — — ( 1.3 ) ( 201.1 ) — — ( 201.1 )

Distributions paid — — — — — — — — —

Balance as of September 30, 2023

320.7 $ 3.2 $ 2,887.6 $ 8,163.5 ( 5.6 ) $ ( 720.5 ) $ ( 2.5 ) $ 1.1 $ 10,332.4

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:

1 unchanged sentence

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation, amortization, depletion and accretion 1,314.3 1,172.6

Depreciation, depletion, amortization and accretion 462 426

Non-cash interest expense 18 22

2 unchanged sentences

Provision for doubtful accounts, net of adjustments 10 7

Loss on extinguishment of debt 2.4 0.2

Loss (gain) on disposition of assets and asset impairments, net 5.9 ( 3.7 )

Loss (income) from unconsolidated equity method investments 116.0 ( 0.2 )

Gain on disposition of assets and asset impairments, net ( 3 ) —

Loss from unconsolidated equity method investments 12 9

Other non-cash items ( 2 ) —

6 unchanged sentences

Other liabilities 6 ( 162 )

Proceeds for retirement of certain hedging relationships 23.7 2.4

Cash provided by operating activities 1,025 811

6 unchanged sentences

Sales of restricted marketable securities 2 12

Other ( 0.3 ) 7.5

Cash used in investing activities ( 1,288 ) ( 679 )

Cash used in financing activities:

Cash provided by (used in) financing activities:

Proceeds from credit facilities and notes payable, net of fees 11,372 6,437

4 unchanged sentences

Cash dividends paid ( 181 ) ( 168 )

Distributions paid to non-controlling interests in consolidated subsidiary ( 0.4 ) —

Contingent consideration payments ( 1 ) ( 4 )

Cash used in financing activities ( 1,188.1 ) ( 579.2 )

Cash provided by (used in) financing activities 284 ( 201 )

Effect of foreign exchange rate changes on cash — ( 1 )

(Decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents ( 21.5 ) 39.5

Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents 21 ( 70 )

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 203 228

26 unchanged sentences

We must make these estimates and assumptions because certain information we use is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies.

In preparing our financial statements, the more critical and subjective areas that deal with the greatest amount of uncertainty relate to our accounting for our landfill development costs and final capping, closure and post-closure costs;

our liabilities for environmental remediation, and insurance reserves.

In preparing our financial statements, the more critical and subjective areas that deal with the greatest amount of uncertainty relate to our accounting for our long-lived assets, including recoverability, landfill development costs and final capping, closure and post-closure costs;

our liabilities for potential litigation, claims and assessments;

our liabilities for environmental remediation, deferred taxes, and uncertain tax positions;

and our estimates of the fair values of assets acquired and liabilities assumed in certain acquisitions.

For more detail on significant accounting policies, refer to Note 2, Summary of Significant Accounting Policies , of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

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Accounting Standards Updates Issued but not yet Adopted

Climate-Related Disclosures

In March 2024, the SEC adopted Final Rule 33-11275 and 34-99678 - The Enhancement and Standardization of Climate-Related Disclosures for Investors .

The rules require registrants to provide standardized disclosures related to material climate-related risks, governance and risk management strategies, and the financial impact of severe weather events and material Scope 1 and 2 greenhouse gas emissions.

The rules require implementation in phases between 2025 and 2033.

In April 2024, the SEC announced that it would voluntarily stay these rules pending judicial review.

The Company is currently evaluating the impact of the rules on its future consolidated financial statements.

Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative

In October 2023, the FASB issued ASU 2023-06 to modify the disclosure or presentation requirements of a variety of topics,

Disaggregation of Income Statement Expenses

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No.

2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses (ASU 2024-03).

ASU 2024-03 requires an entity to disclose the amount of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption.

It also requires an entity to include certain amounts that are already required to be disclosed under GAAP in the same disclosure.

Additionally, it requires an entity to disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, and to disclose the total amount of selling expenses and,

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

which will allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the SEC's requirements, and to align the requirements in the FASB accounting standard codification with the SEC's regulations.

The Company is currently evaluating the amendments and the impact on its future consolidated financial statements.

Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (ASU 2023-07) .

ASU 2023-07 amends the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

ASU 2023-07 will be applied retrospectively to all periods presented in the financial statements.

The amendments in this update are effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024.

The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

in annual reporting periods, an entity’s definition of selling expenses.

The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted.

An entity may apply the amendments prospectively for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements.

The Company is currently evaluating the impact of the amendments on its future consolidated financial statements.

Improvements to Income Tax Disclosures

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

Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements:

Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, to modify the disclosure or presentation requirements of a variety of topics, which will allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the SEC's requirements, and to align the requirements in the FASB accounting standard codification with the SEC's regulations.

The effective date for each topic's amendment will be the date on which the SEC's removal of the topic's related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited.

The Company is currently evaluating the amendments and the impact on its future consolidated financial statements.

BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES

We acquired various environmental services businesses during the nine months ended September 30, 2024 and 2023.

We acquired various environmental services businesses during the three months ended March 31, 2025 and 2024.

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

1 unchanged sentence

Cash used in acquisitions, net of cash acquired of $ 7 and $ 1 , respectively

$ 77.2 $ 938.0

Fair value, future minimum finance lease payments

Total $ 826 $ 41

2 unchanged sentences

Prepaid expenses 2 —

Landfill development costs

Property and equipment

Operating right-of-use lease assets

Parts and supplies

Accounts payable

( 0.4 ) ( 5.6 )

Deferred revenue

( 0.6 ) ( 8.2 )

Environmental remediation liabilities

Closure and post-closure liabilities

Operating right-of-use lease liabilities

1 unchanged sentence

Other liabilities

( 0.6 ) ( 0.3 )

Fair value of tangible assets acquired and liabilities assumed 120 20

2 unchanged sentences

Other intangible assets

$ 14.0 $ 136.0

Total allocated $ 706 $ 21

2 unchanged sentences

Certain of the purchase price allocations are preliminary and based on information existing at the acquisition dates.

Accordingly, the purchase price allocations are subject to change.

For the acquisitions that closed during the nine months ended September 30, 2024, we expect that a majority of the goodwill and intangible assets recognized as a result of these acquisitions will be deductible for tax purposes.

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

For the acquisitions that closed during the three months ended March 31, 2025, we expect that a majority of the goodwill and intangible assets recognized as a result of these acquisitions will not be deductible for tax purposes.

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.

In November 2023, we acquired all of the issued and outstanding capital stock or other ownership interests of Advanced Chemical Transport LLC (ACT).

ACT's environmental solutions operations are primarily located in the western United States and provide us with additional growth opportunities in our environmental solutions line of business.

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 property, plant and equipment and customer relationship intangible assets acquired, is based on the best estimates of management and is subject to revision based on the final valuations.

We expect our final valuations to be completed in the fourth quarter of 2024.

In December 2023, we acquired all of the issued and outstanding membership and other equity interests of Central Texas Refuse, LLC and an affiliate thereof (CTR).

CTR's vertically integrated recycling and waste services operations are located in and around Austin, Texas and provide us with the opportunity to re-enter the high growth Austin market.

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 property, plant and equipment and customer relationship intangible assets acquired as well as certain landfill 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 final valuations to be completed in the fourth quarter of 2024.

In 2024 , we acquired a non-controlling equity interest in a joint venture with a landfill gas-to-energy developer to construct a renewable natural gas project at one of our landfill locations in Illinois.

During the nine months ended September 30, 2024 , we contributed $ 33.8 million in the joint venture.

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

In 2024 , we acquired a non-controlling equity interest in a thermal processing facility that treats and recycles contaminated soil, hazardous and non-hazardous waste, and contaminated water to expand our environmental service offering in Canada.

During the nine months ended September 30, 2024 , we contributed $ 26.9 million in the joint venture.

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

These investments were recorded as other assets in our unaudited consolidated balance sheets as of September 30, 2024 .

In 2024 and 2023, 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 $ 236.2 million and $ 34.0 million, which were recorded to other assets in our September 30, 2024 and 2023 unaudited consolidated balance sheets, respectively.

During the three and nine months ended September 30, 2024 , we decreased the carrying value of these investments by recognizing losses of $ 74.5 million and $ 116.9 million, respectively, and during the three and nine months ended September 30, 2023, we decreased the carrying value of these investments by recognizing losses of $ 3.7 million and $ 6.3 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 $ 81.0 million and $ 122.0 million, respectively, for the three and nine months ended September 30, 2024 due to the tax credits related to these investments, compared to benefits of $ 8.0 million for the three and nine months ended September 30, 2023.

In February 2025, we acquired all of the issued and outstanding shares of COP Shamrock Parent, Inc.

Shamrock is a leading provider of industrial waste and wastewater treatment services.

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

We invest in non-controlling equity interests in certain limited liability companies that qualify for investment tax credits under Section 48 of the Internal Revenue Code.

We account for these investments under the equity method of accounting utilizing the Hypothetical Liquidation at Book Value method.

In exchange for our non-controlling interests, we made capital contributions of $ 87 million, which were recorded to other assets in our March 31, 2024 unaudited consolidated balance sheets.

No capital contributions were made during the three months ended March 31, 2025.

During the three months ended March 31, 2025 and 2024, we decreased the carrying value of these investments by $ 8 million and $ 9 million, respectively, as a result of our share of income and loss pursuant to the terms of the limited liability company agreements .

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, 2024.

In 2024, we acquired a non-controlling equity interest in a joint venture with a landfill gas-to-energy developer to construct renewable natural gas projects at certain of our landfill locations in Illinois.

As of March 31, 2025 and December 31, 2024 , our carrying value in the joint venture was $ 38 million and $ 35 million, respectively.

During the three months ended March 31, 2025 and 2024, we contributed $ 3 million and $ 29 million, respectively, in the joint venture.

This investment is an unconsolidated variable interest entity (VIE) for which we do not have the power to direct the significant activities of the business, and it is accounted for under the equity method of accounting.

Our risk of loss is materially consistent with our contributions to-date.

In 2022 , we acquired a non-controlling equity interest in a joint venture with a landfill gas-to-energy developer to construct renewable natural gas projects at our landfills across the United States.

Certain of these investments qualified for investment tax credits under Section 48 of the Internal Revenue Code.

As of March 31, 2025 and December 31, 2024 , our carrying value in the joint venture was approximately $ 270 million .

During the three months ended March 31, 2025 and 2024, we contributed $ 4 million and less than $ 1 million, respectively, into the joint venture.

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

In 2022 , we acquired a non-controlling equity interest in Blue Polymers, LLC, a joint venture with Ravago, intended to help create vertical integration in the recycling market, and to further advance circularity by acquiring all olefins produced by the Company's Polymer Centers and produce custom blended pellets for food-grade and non-food-grade packaging.

As of March 31, 2025 and December 31, 2024 , our carrying value in the joint venture was $ 61 million and $ 55 million, respectively.

During each of the three months ended March 31, 2025 and 2024, we contributed $ 8 million into the joint venture.

This investment is an unconsolidated VIE for which we do not have the power to direct the significant activities of the business, and it is accounted for under the equity method of accounting.

Our risk of loss is materially consistent with our contributions to-date.

These investments were recorded as other assets in our unaudited consolidated balance sheets as of March 31, 2025.

Restructuring Charges

During the three and nine months ended September 30, 2024 , we incurred restructuring charges of $ 8.2 million and $ 19.7 million, respectively, and during the three and nine months ended September 30, 2023, we incurred restructuring charges of $ 6.3 million and $ 27.3 million , respectively .

During the three months ended March 31, 2025 and 2024 , we incurred restructuring charges of $ 4 million and $ 6 million , respectively.

The 2025 charges primarily related to the design and implementation of a new accounts receivable system.

The 2024 charges primarily related to the redesign of our asset management, and customer and order management software systems.

Of the 2023 charges, $ 9.5 million related to the early termination of certain leases and $ 17.8 million related to the redesign of our asset management, and customer and order management software systems.

During the nine months ended September 30, 2024 and 2023, we paid $ 18.1 million and $ 32.4 million, respectively, related to these restructuring efforts.

During the three months ended March 31, 2025 and 2024, we paid $ 3 million and $ 6 million, respectively, related to these restructuring efforts.

REPUBLIC SERVICES, INC.

3 unchanged sentences

Balance as of December 31, 2024

Acquisitions Divestitures Adjustments to Acquisitions and Other Balance as of September 30, 2024

Acquisitions Divestitures Adjustments and Other Balance as of March 31, 2025

Group 1 $ 7,492 $ 34 $ — $ 6 $ 7,532

2 unchanged sentences

Total $ 15,982 $ 598 $ — $ 5 $ 16,585

Adjustments to acquisitions during the nine months ended September 30, 2024 primarily related to changes in our valuation of property and equipment acquired as a result of obtaining new information regarding the acquisitions that closed in 2023.

Adjustments to acquisitions during the three months ended March 31, 2025 primarily related to changes in our valuation of property and equipment acquired as a result of obtaining new information regarding the acquisitions that closed in 2024.

Other Intangible Assets, Net

Other intangible assets, net, include values assigned to customer relationships, non-compete agreements and trade names, and are amortized over periods ranging from 1 to 15 years.

Other intangible assets, net, is primarily comprised of values assigned to customer relationships, which are amortized over periods ranging from 1 to 15 years.

A summary of the activity and balances by intangible asset type follows:

2 unchanged sentences

Acquisitions Adjustments

Balance as of September 30, 2024

Balance as of March 31, 2025

Balance as of December 31, 2024

Additions Charged to Expense Adjustments

Balance as of September 30, 2024

Other Intangible Assets, Net as of September 30, 2024

Balance as of March 31, 2025

Other Intangible Assets, Net as of March 31, 2025

Customer relationships

$ 690 $ 107 $ — $ 797 $ ( 215 ) $ ( 19 ) $ — $ ( 234 ) $ 563

Non-compete agreements

30.4 2.5 ( 0.5 ) 32.4 ( 15.7 ) ( 4.5 ) — ( 20.2 ) 12.2

Other intangible assets

2 unchanged sentences

Prepaid Expenses and Other Current Assets

A summary of prepaid expenses and other current assets as of September 30, 2024 and December 31, 2023 follows:

A summary of prepaid expenses and other current assets as of March 31, 2025 and December 31, 2024 follows:

Prepaid expenses $ 117 $ 127

2 unchanged sentences

Prepaid fees for cloud-based hosting arrangements, current 34 27

Income taxes receivable 29.0 126.3

Reinsurance receivable 30 30

Derivative and hedging assets — 4.2

Income taxes receivable 2 124

Other current assets 8 9

2 unchanged sentences

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

A summary of other assets as of September 30, 2024 and December 31, 2023 follows:

A summary of other assets as of March 31, 2025 and December 31, 2024 follows:

Investments $ 638 $ 637

6 unchanged sentences

Amounts recoverable for capping, closure and post-closure obligations 26 24

Deferred financing costs 4.4 3.6

Other 14.4 21.9

Total $ 1,394 $ 1,383

1 unchanged sentence

Other Accrued Liabilities

A summary of other accrued liabilities as of September 30, 2024 and December 31, 2023 follows:

A summary of other accrued liabilities as of March 31, 2025 and December 31, 2024 follows:

Accrued payroll and benefits $ 252 $ 339

4 unchanged sentences

Ceded insurance reserves, current 30 30

Current tax liabilities 23.2 2.1

Contingent purchase price and acquisition holdbacks 20 14

Accrued professional fees and legal settlement reserves 13 12

Derivative and hedging liabilities — 8.3

Other 117 119

1 unchanged sentence

Other Long-Term Liabilities

A summary of other long-term liabilities as of September 30, 2024 and December 31, 2023 follows:

A summary of other long-term liabilities as of March 31, 2025 and December 31, 2024 follows:

Operating right-of-use lease liabilities $ 191 $ 189

4 unchanged sentences

Withdrawal liability - multiemployer pension funds 19 19

Other 40.2 42.9

Total $ 580 $ 588

2 unchanged sentences

LANDFILL AND ENVIRONMENTAL COSTS

As of September 30, 2024, we owned or operated 208 active landfills with total available disposal capacity estimated to be 5.1 billion in-place cubic yards.

As of March 31, 2025, we owned or operated 208 active 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, 2024 and December 31, 2023 follows:

A summary of accrued landfill and environmental liabilities as of March 31, 2025 and December 31, 2024 follows:

Landfill final capping, closure and post-closure liabilities $ 2,181 $ 2,144

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, 2024 and 2023:

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, 2025 and 2024:

Asset retirement obligation liabilities, beginning of year $ 2,144 $ 1,937

Non-cash additions 17 14

Acquisitions, net of divestitures and other adjustments 4.1 11.8

Asset retirement obligation adjustments — ( 1 )

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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, 2024 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 March 31, 2025 would be approximately $ 274 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.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The following table summarizes the activity in our environmental remediation liabilities for the nine months ended September 30, 2024 and 2023:

The following table summarizes the activity in our environmental remediation liabilities for the three months ended March 31, 2025 and 2024:

Environmental remediation liabilities, beginning of year $ 447 $ 485

6 unchanged sentences

Bridgeton Landfill.

During the nine months ended September 30, 2024, we paid $ 8.6 million related to management and monitoring of the remediation area for our closed Bridgeton Landfill in Missouri.

During the three months ended March 31, 2025, we paid $ 2 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, 2024, the remediation liability recorded for this site was $ 65.0 million, of which approximately $ 5 million is expected to be paid during the remainder of 2024.

As of March 31, 2025, the remediation liability recorded for this site was $ 60 million, of which approximately $ 10 million is expected to be paid during the remainder of 2025.

West Lake Landfill Superfund Site .

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On March 11, 2019, the EPA issued special notice letters under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) to Bridgeton Landfill, LLC and the other currently designated Potentially Responsible Parties to initiate negotiations to implement the remedy.

On January 17, 2025, the EPA issued an Explanation of Significant Differences (ESD) applying the prior Record of Decision Amendment to an increased number of acres at the site found to contain radiologically-impacted material.

The ESD includes a revised undiscounted cost estimate of $ 392 million.

At this time we are neither able to predict the final design of that remedy, nor estimate how much of the future response costs of the site our subsidiary may agree or be required to pay.

During any subsequent administrative proceedings or litigation, our subsidiary will vigorously contest liability for the costs of remediating radiologically-impacted materials generated on behalf of the federal government during the Manhattan Project and delivered to the site by an Atomic Energy Commission licensee and its subcontractor.

Currently, we believe we are adequately reserved for our expected remediation liability.

However, subsequent events related to remedy design, divisibility, or allocation may require us to modify our expected remediation liability.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The carrying value of our credit facilities, finance leases and long-term debt as of September 30, 2024 and December 31, 2023 is listed in the following table, and is adjusted for 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, 2024 December 31, 2023

The carrying value of our credit facilities, finance leases and long-term debt as of March 31, 2025 and December 31, 2024 is listed in the following table, and is adjusted for unamortized discounts, deferred issuance costs and the unamortized portion of adjustments to fair value recorded in purchase accounting.

Original issue discounts 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.

March 31, 2025 December 31, 2024

Maturity Interest Rate Principal Adjustments Carrying Value Principal Adjustments Carrying Value

6 unchanged sentences

Senior notes:

August 2024 2.500 — — — 900.0 ( 1.2 ) 898.8

March 2025 3.200 — — — 500 — 500

6 unchanged sentences

March 2030 2.300 600 ( 4 ) 596 600 ( 4 ) 596

July 2030 4.750 500 ( 5 ) 495 — — —

February 2031 1.450 650 ( 5 ) 645 650 ( 5 ) 645

6 unchanged sentences

March 2035 5.150 700 ( 9 ) 691 — — —

March 2040 6.200 400 ( 3 ) 397 400 ( 3 ) 397

May 2041 5.700 386 ( 5 ) 381 386 ( 5 ) 381

3 unchanged sentences

1,418 ( 9 ) 1,409 1,418 ( 9 ) 1,409

Finance leases:

Finance leases and other:

1.726 - 9.750

2 unchanged sentences

current portion ( 421 ) ( 862 )

( 513.0 ) ( 932.3 )

Long-term portion $ 12,862 $ 11,851

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Credit Facilities

2 unchanged sentences

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

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

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

1 unchanged sentence

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

As of September 30, 2024, we had $ 92.6 million of borrowings outstanding under our Uncommitted Credit Facility.

As of March 31, 2025, we had $ 62 million of borrowings outstanding under our Uncommitted Credit Facility.

As of December 31, 2024, we had no borrowings outstanding under our Uncommitted Credit Facility.

1 unchanged sentence

In July 2024, we and our subsidiary, USE Canada Holdings, Inc.

(the Canadian Borrower) entered into the Second Amended and Restated Credit Agreement (the Credit Facility) which amends and restates the unsecured revolving credit facility we entered into in August 2021.

(the Canadian Borrower) entered into the Second Amended and Restated Credit Agreement (the Credit Facility) which amended and restated the unsecured revolving credit facility we entered into in August 2021.

The total outstanding principal amount that we may borrow under the Credit Facility may not exceed the current aggregate lenders' commitments of $ 3.5 billion, and borrowings under the Credit Facility mature in July 2029.

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.

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.

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Borrowings under the Credit Facility in United States dollars bear interest at a Base Rate, a daily floating SOFR or a term SOFR, plus a current applicable margin of 0.920 % based on our Debt Ratings (all as defined in the Credit Facility agreement).

The Canadian dollar-denominated loans bear interest based on the Canadian Overnight Repo Rate Average.

As of September 30, 2024 and December 31, 2023, C$ 241.0 million and C$ 201.5 million, respectively, were outstanding against the Canadian Sublimit.

The weighted average interest rate for borrowings outstanding as of September 30, 2024 was 5.525 %.

The Canadian dollar-denominated loans bear interest based on the Canadian Prime Rate or the Canadian Dollar Offered Rate, plus a current applicable margin of 0.920 % based on our Debt Ratings.

As of March 31, 2025 and December 31, 2024, C$ 216 million and C$ 232 million, respectively, were outstanding against the Canadian Sublimit.

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.

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

We had $ 178.3 million and $ 297.1 million of borrowings outstanding under the Credit Facility as of September 30, 2024 and December 31, 2023, respectively.

We had $ 315.2 million and $ 336.5 million of letters of credit outstanding under the Credit Facility as of September 30, 2024 and December 31, 2023, respectively.

We also had $ 594.8 million and $ 495.3 million of principal borrowings outstanding (net of related discount on issuance) under the commercial paper program as of September 30, 2024 and December 31, 2023, respectively.

As a result, availability under our Credit Facility was $ 2,411.5 million and $ 2,371.2 million as of September 30, 2024 and December 31, 2023, respectively.

Term Loan Facility

On April 29, 2022, we entered into a $ 1.0 billion term loan facility (the Term Loan Facility) which bore interest at a base rate or a forward-looking SOFR, plus an applicable margin based on our debt ratings.

We had $ 500.0 million of borrowings outstanding under the Term Loan Facility as of December 31, 2023.

During the nine months ended September 30, 2024, we repaid the remaining balance of the Term Loan Facility.

We had $ 151 million and $ 514 million of borrowings outstanding under the Credit Facility as of March 31, 2025 and December 31, 2024, respectively.

We had $ 322 million and $ 317 million of letters of credit outstanding under the Credit Facility as of March 31, 2025 and December 31, 2024, respectively.

We also had $ 640 million and $ 477 million of principal borrowings outstanding (net of related discount on issuance) under the commercial paper program as of March 31, 2025 and December 31, 2024, respectively.

As a result, availability under our Credit Facility was $ 2.4 billion and $ 2.2 billion as of March 31, 2025 and December 31, 2024, respectively.

Commercial Paper Program

We have entered into a commercial paper program for the issuance and sale of unsecured commercial paper in an aggregate principal amount not to exceed $ 1.5 billion outstanding at any one time.

The weighted average interest rate for borrowings outstanding as of September 30, 2024 was 4.910 % with a weighted average maturity of 11 days.

We had $ 595.0 million and $ 496.0 million in aggregate principal amount of commercial paper issued and outstanding under the program as of September 30, 2024 and December 31, 2023, respectively.

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, 2024.

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 million outstanding at any one time (the Commercial Paper Cap).

In August 2022, the Commercial Paper Cap was increased to $ 1.0 billion, and in October 2023, was increased to $ 1.5 billion.

The weighted average interest rate for borrowings outstanding as of March 31, 2025 is 4.633 % with a weighted average maturity of approximately 12 days.

The weighted average interest rate for borrowings outstanding as of December 31, 2024 is 4.646 % with a weighted average maturity of approximately 18 days.

We had $ 640 million and $ 477 million principal value of commercial paper issued and outstanding under the program as of March 31, 2025 and December 31, 2024, respectively.

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

Accordingly, we have classified these borrowings as long-term in our consolidated balance sheet as of March 31, 2025 and December 31, 2024, respectively.

REPUBLIC SERVICES, INC.

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Senior Notes and Debentures

In March 2023, we issued $ 400.0 million of 4.875 % senior notes due 2029 (the Existing 2029 Notes) and $ 800.0 million of 5.000 % senior notes due 2034.

We used the proceeds from the March 2023 notes issuance for general corporate purposes, including the repayment of a portion of amounts outstanding under the Uncommitted Credit Facility, the Commercial Paper Program, the Credit Facility, and the Term Loan Facility.

As a result of the Term Loan Facility repayment, we incurred a non-cash loss on the early extinguishment of debt related to the ratable portion of unamortized deferred issuance costs of $ 0.2 million.

In December 2023, we issued an additional $ 350.0 million of 4.875 % senior notes due 2029 (the New 2029 Notes, and together with the Existing 2029 Notes, the 2029 Notes).

After giving effect to the issuance of the New 2029 Notes, $ 750.0 million in aggregate principal amount of the 2029 Notes is outstanding.

The New 2029 Notes are fungible with the Existing 2029 Notes, and taken together, the 2029 Notes are treated as a single series.

In December 2023, we also issued $ 650.0 million of 5.000 % senior notes due 2033.

The proceeds of the December 2023 notes issuance were used for general corporate purposes, including the repayment of a portion of amounts outstanding under the Uncommitted Credit Facility, the Commercial Paper Program, the Credit Facility, and the Term Loan Facility.

In June 2024, we issued $ 400 million of 5.000 % senior notes due 2029 and $ 500 million of 5.200 % senior notes due 2034.

1 unchanged sentence

and repayment of the remaining amount outstanding under the Term Loan Facility and the Uncommitted Credit Facility.

In March 2025, we issued $ 500 million of 4.750 % senior notes due 2030 and $ 700 million of 5.150 % senior notes due 2035.

We used the proceeds from the March 2025 notes issuance for general corporate purposes, including the repayment of a portion of amounts outstanding on our Credit Facility and a portion of outstanding borrowings under the Commercial Paper Program.

Our senior notes and debentures are general unsecured and unsubordinated obligations and rank equally with our other unsecured obligations.

Interest Rate Swap and Lock Agreements

Our ability to obtain financing through the capital markets is a key component of our financial strategy.

Historically, we have managed risk associated with executing this strategy, particularly as it relates to fluctuations in interest rates, by using a combination of fixed and floating rate debt.

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).

Cash Flow Hedges

We have historically entered into multiple swap agreements designated as cash flow hedges to manage exposure to fluctuations in interest rates in anticipation of planned future issuances of senior notes.

Upon the expected issuance of senior notes, we terminate the interest rate locks and settle with our counterparties.

These transactions are accounted for as cash flow hedges.

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).

During the nine months ended September 30, 2023, we recognized an unrealized gain in other comprehensive loss of $ 1.7 million, net of tax, related to terminated interest rate locks issued in conjunction with the issuance of our 5.000 % notes in March 2023.

As of September 30, 2024 and December 31, 2023, our previously terminated interest rate locks were recorded as components of accumulated other comprehensive loss of $ 13.6 million and $ 15.9 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 months ended September 30, 2024 and 2023, we recognized losses, net of tax, of $ 0.5 million and $ 0.9 million, respectively.

For the nine months ended September 30, 2024 and 2023, we recognized losses, net of tax, of $ 2.2 million and $ 2.9 million, respectively.

Over the next 12 months, we expect to amortize $ 0.7 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, 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, an initial notional amount of $ 500 million relative to our Term Loan Facility and an initial fair value of $ 29.1 million.

The initial fair value was reclassified into earnings as non-cash interest expense on a systematic basis over the life of the interest rate swap.

In June 2024, we terminated the 2022 Interest Rate Swap and received $ 23.7 million in conjunction with this settlement.

As of December 31, 2023, the 2022 Interest Rate Swap was recorded at its fair value of $ 24.3 million and was included in other assets in our consolidated balance sheets.

For the nine months ended September 30, 2024, we recognized unrealized gains of $ 6.3 million in accumulated other comprehensive income for the 2022 Interest Rate Swap.

For the three and nine months ended September 30, 2023, we recognized unrealized gains of $ 4.1 million and $ 14.9 million, respectively, in accumulated other comprehensive income for the

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

2022 Interest Rate Swap.

As of December 31, 2023, the 2022 Interest Rate Swap was recorded as a gain within accumulated other comprehensive loss of $ 4.3 million, net of tax.

For the nine months ended September 30, 2024, we recognized gains, net of tax, of $ 10.6 million.

For the three and nine months ended September 30, 2023, we recognized gains, net of tax, of $ 3.2 million and $ 10.0 million, respectively, related to this amortization.

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.

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 (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 (2019 Extended Interest Rate Locks and collectively with the 2020 Extended Interest Rate Locks, the Extended Interest Rate Locks).

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

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

In September 2024, the 2019 Extended Interest Rate Locks fully matured.

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, 2024, the fair value of the 2020 Extended Interest Rate Locks were assets of $ 41.2 million, which were included in other assets in our consolidated balance sheet and the fair value of the 2020 Offsetting Interest Rate Swap were liabilities of $ 58.5 million, which were included in other long-term liabilities in our consolidated balance sheet.

As of December 31, 2023, the fair value of the Extended Interest Rate Locks were assets of $ 54.0 million, which were included in prepaids and other current assets and other assets in our consolidated balance sheet and the fair value of the Offsetting Interest Rate Swaps were liabilities of $ 78.2 million, which were included in other accrued liabilities and other long-term liabilities in our consolidated balance sheet.

For the three months ended September 30, 2024 and 2023, we recognized losses of $ 18.0 million and gains of $ 18.3 million, respectively, on the change in fair value of the Extended Interest Rate Locks with offsetting gains of $ 17.3 million and losses of $ 18.9 million, respectively, on the change in fair value of the Offsetting Interest Rate Swaps.

For the nine months ended September 30, 2024 and 2023, we recognized losses of $ 12.5 million and gains of $ 17.7 million, respectively, on the change in fair value of the Extended Interest Rate Locks with offsetting gains of $ 11.7 million and losses of $ 19.6 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, 2024 and December 31, 2023, we had $ 1,408.7 million and $ 1,280.6 million, respectively, of certain fixed and variable rate tax-exempt financings outstanding, with maturities ranging from 2026 to 2054 and from 2024 to 2053, respectively.

As of both March 31, 2025 and December 31, 2024, we had $ 1.4 billion of tax-exempt financings outstanding, with maturities ranging from 2026 to 2054 for both periods.

In June 2024, the Mission Economic Development Corporation issued, for our benefit, $ 50 million in principal amount of Solid Waste Disposal Revenue Bonds.

The proceeds from the issuance, after deferred issuance costs, were used to fund the acquisition, construction, improvement, installation, and/or equipping of certain solid waste disposal facilities located within Texas.

In both March 2024 and September 2023, the California Municipal Finance Authority issued, for our benefit, $ 100.0 million in principal amount of Solid Waste Disposal Revenue Bonds.

The proceeds from the issuances, after deferred issuance costs, were used to fund the acquisition, construction, improvement, installation, and/or equipping of certain solid waste disposal facilities located within California.

The initial remarketing period for these tax-exempt financings is 10 years.

In March 2024, the California Municipal Finance Authority issued, for our benefit, $ 100 million in principal amount of Solid Waste Disposal Revenue Bonds.

We have $ 250 million of tax-exempt financings that have an initial remarketing period of 10 years.

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

1 unchanged sentence

If the remarketing agents are unable to remarket our bonds, the remarketing agents can put the bonds to us.

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, 2024 and December 31, 2023.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Finance Leases

As of September 30, 2024 and December 31, 2023, we had finance lease liabilities of $ 291.1 million and $ 251.3 million, respectively, with maturities ranging from 2024 to 2063 for both periods.

Our effective tax rate, exclusive of non-controlling interests, for the three and nine months ended September 30, 2024 was 12.5 % and 19.4 %, respectively.

Our effective tax rate, exclusive of non-controlling interests, for the three and nine months ended September 30, 2023 was 20.8 % and 24.4 %, respectively.

Our effective tax rate for the three and nine months ended September 30, 2024 reflects a benefit of $ 81.0 million and $ 122.0 million, respectively, due to our investments in renewable energy assets qualifying for tax credits under Section 48 of the Internal Revenue Code, $ 6.2 million due to the realization of additional federal and state benefits, as well as adjustments to deferred taxes due to the completion of our 2023 tax returns.

Our effective tax rate for the nine months ended September 30, 2023 reflected benefits of $ 20.6 million from tax settlements, $ 7.9 million from investments in solar energy assets qualifying for federal tax credits under Section 48 of the Internal Revenue Code, $ 6.8 million due to the realization of additional federal and state benefits, as well as adjustments to deferred taxes due to the completion of our 2022 tax returns.

For the nine months ended September 30, 2024 and 2023, net cash paid for income taxes was $ 183.4 million and $ 137.9 million, respectively.

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

Accordingly, we classified these borrowings as long-term in our consolidated balance sheets as of March 31, 2025 and December 31, 2024.

Finance Leases and Other

As of March 31, 2025 and December 31, 2024, we had finance lease and other liabilities of $ 333 million and $ 315 million, respectively, with maturities ranging from 2025 to 2063 for both periods.

As of March 31, 2025, finance leases and other included $ 76 million related to the construction of an office building located in Phoenix, Arizona, which has been accounted for as a financing obligation.

The amount is recorded within long-term debt, net of current maturities.

Our effective tax rate, exclusive of non-controlling interests, for the three months ended March 31, 2025 and 2024 was 25.6 % and 24.2 %, respectively.

For the three months ended March 31, 2025 and 2024, net cash paid for income taxes was $ 2 million and $ 8 million, respectively.

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

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

As of September 30, 2024, the valuation allowance associated with our state loss carryforwards was $ 44.6 million.

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

As of March 31, 2025, the valuation allowance associated with our state loss carryforwards was $ 45 million.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

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

Income tax in our foreign jurisdictions is not material for all years presented.

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

1 unchanged sentence

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.

Our federal statute of limitations is closed through 2020.

The federal statu t e of limitations applicable to an acquired subsidiary is closed through 2019.

Our federal statute of limitations is closed through 2021, except for an acquired subsidiary for which the statute of limitations is closed through 2020.

In addition, we are currently under state examination or administrative review in various jurisdictions for tax years 2012 through 2023.

1 unchanged sentence

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, 2024, we are unable to estimate the resolution of our gross unrecognized benefits over the next 12 months.

As of March 31, 2025, 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, 2024, we accrued a liability for penalties of $ 1.1 million and a liability for interest (including interest on penalties) of $ 13.1 million related to our uncertain tax positions.

As of March 31, 2025, we accrued a liability for penalties of $ 1 million and a liability for interest (including interest on penalties) of $ 5 million related to our uncertain tax positions.

STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE

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While the Board of Directors has approved the program, the timing of any purchases, the prices and the number of shares of common stock to be purchased will be determined by our management, at its discretion, and will depend upon market conditions and other factors.

On a quarterly

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

basis, our Board of Directors reviews the parameters around which we repurchase our shares.

On a quarterly basis, our Board of Directors reviews the parameters around which we repurchase our shares.

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, 2024 and 2023 follows (in millions, except per share amounts):

Three Months Ended September 30,

Nine Months Ended September 30,

2024 2023 2024 2023

Stock repurchase activity during the three months ended March 31, 2025 and 2024 follows (in millions, except per share amounts):

Three Months Ended March 31,

Number of shares repurchased 0.3 —

$ 153.0 $ 190.4 $ 320.7 $ 190.4

Weighted average cost per share $ 201.40 $ —

The average price paid per share, total repurchase costs and approximate maximum dollar value of the shares that may yet be purchased under the plans or programs exclude a 1% excise tax.

As of September 30, 2024 and 2023, there were less than 0.1 million repurchased shares pending settlement, resulting in an associated $ 8.9 million and $ 10.7 million, respectively, of share repurchases unpaid and included within other accrued liabilities.

As of September 30, 2024, the remaining authorized purchase capacity under our October 2023 repurchase program was $ 2.7 billion.

In July 2024, our Board of Directors approved a quarterly dividend of $ 0.580 per share.

Cash dividends declared were $ 518.2 million for the nine months ended September 30, 2024.

As of September 30, 2024, we recorded a quarterly dividend payable of $ 181.7 million to shareholders of record at the close of business on October 2, 2024.

As of March 31, 2025 and 2024, there were no repurchased shares pending settlement.

As of March 31, 2025, the remaining authorized purchase capacity under our October 2023 repurchase program was $ 2.5 billion.

In February 2025, our Board of Directors approved a quarterly dividend of $ 0.580 per share.

Cash dividends declared were $ 181 million for the three months ended March 31, 2025.

As of March 31, 2025, we recorded a quarterly dividend payable of $ 181 million to shareholders of record at the close of business on April 2, 2025.

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 unvested restricted stock units (RSUs) and the unvested performance stock units (PSUs) at the expected attainment levels.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

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, 2024 and 2023 are calculated as follows (in thousands, except per share amounts):

Three Months Ended September 30,

Nine Months Ended September 30,

2024 2023 2024 2023

Earnings per share for the three months ended March 31, 2025 and 2024 are calculated as follows (in thousands, except per share amounts):

Three Months Ended March 31,

Basic earnings per share:

10 unchanged sentences

Unvested PSU awards

239 382 291 366

Weighted average common and common equivalent shares outstanding

1 unchanged sentence

Diluted earnings per share $ 1.58 $ 1.44

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

During the three and nine months ended September 30, 2024 there were no antidilutive securities outstanding.

During the three and nine months ended September 30, 2023 there were less than 0.1 million antidilutive securities outstanding.

During the three months ended March 31, 2025 and 2024, there were no 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, 2024 follows:

Cash Flow Hedges Defined Benefit Pension Items Foreign Currency Translation Total

A summary of changes in accumulated other comprehensive loss, net of tax, by component, for the three months ended March 31, 2025 follows:

Cash Flow Hedges Foreign Currency Translation Total

Balance as of December 31, 2024

$ ( 13 ) $ ( 13 ) $ ( 26 )

Other comprehensive income (loss) before reclassifications 6.4 ( 2.3 ) 3.3 7.4

Other comprehensive loss before reclassifications — ( 5 ) ( 5 )

Amounts reclassified from accumulated other comprehensive loss — — —

Net current period other comprehensive (loss) income ( 2.0 ) ( 7.8 ) 3.3 ( 6.5 )

Balance as of September 30, 2024

$ ( 13.6 ) $ 1.1 $ ( 6.1 ) $ ( 18.6 )

A summary of reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2024 and 2023 follows:

Three Months Ended September 30,

Nine Months Ended September 30,

Net current period other comprehensive loss — ( 5 ) ( 5 )

Balance as of March 31, 2025

$ ( 13 ) $ ( 18 ) $ ( 31 )

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

A summary of reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2025 and 2024 follows:

Three Months Ended March 31,

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

Gain (loss) on cash flow hedges:

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Total before tax — 3

Tax benefit (provision) 0.2 ( 0.8 ) ( 2.9 ) ( 2.5 )

Net of tax ( 0.5 ) 2.3 8.4 7.1

Pension gains:

Pension settlement 7.4 — 7.4 — Other income, net

Tax provision — ( 1 )

Net of tax 5.5 — 5.5 —

Total income reclassified into earnings, net of tax $ — $ 2

In September 2024, we initiated the termination of our defined benefit pension plan.

Plan participants were provided the opportunity to receive their full accrued benefits from plan assets by either electing immediate lump sum distributions or annuity contracts with a qualifying third-party annuity provider.

The purchase of the annuity contracts was funded directly by assets of the defined benefit pension plan.

As a result, a substantial portion of the plan was settled during the three and nine months ended September 30, 2024, resulting in the recognition of a non-cash gain of $ 7.4 million related to the accelerated recognition of the proportional share of unamortized net actuarial gains previously recorded in accumulated other comprehensive loss.

This gain was recorded to other income, net in our consolidated statements of income.

We expect to settle all remaining obligations by the end of 2024.

REPUBLIC SERVICES, INC.

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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, 2024 and 2023 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,

2024 2023 2024 2023

Interest Expense Interest Expense 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 $ ( 138.2 ) $ ( 127.6 ) $ ( 405.8 ) $ ( 378.8 )

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

(Loss) gain on cash flow hedging relationships:

Interest rate swap locks $ ( 0.5 ) $ ( 0.9 ) $ ( 2.2 ) $ ( 2.9 )

2022 interest rate swap $ — $ 1.6 $ 8.0 $ 5.2

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

Loss on free-standing derivative instruments:

Interest rate contract:

Net loss on change in fair value of free-standing derivative instruments $ ( 0.7 ) $ ( 0.6 ) $ ( 0.8 ) $ ( 1.9 )

Fair Value Measurements

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We also use market data or assumptions that we believe market participants would use in pricing an asset or liability, including assumptions about risk when appropriate.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

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, 2024 and December 31, 2023, our assets and liabilities that are measured at fair value on a recurring basis include the following:

September 30, 2024

As of March 31, 2025 and December 31, 2024, our assets and liabilities that are measured at fair value on a recurring basis include the following:

March 31, 2025

Carrying Amount Total Quoted

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(Level 2) Significant

Money market mutual funds $ 60.8 $ 60.8 $ 60.8 $ — $ —

Bonds - restricted cash and marketable securities and other assets

80.8 80.8 — 80.8 —

Money market mutual funds - restricted cash and marketable securities and other assets $ 66 $ 66 $ 66 $ — $ —

Bonds and fixed income - restricted cash and marketable securities and other assets

Derivative and hedging assets - other assets 47 47 — 47 —

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Contingent consideration - other accrued liabilities and other long-term liabilities 65 65 — — 65

62.3 62.3 — — 62.3

Total liabilities $ 128 $ 128 $ — $ 63 $ 65

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(Level 2) Significant

Money market mutual funds $ 43.1 $ 43.1 $ 43.1 $ — $ —

Bonds - restricted cash and marketable securities and other assets

76.3 76.3 — 76.3 —

Derivative and hedging assets - prepaid and other current assets and other assets 78.3 78.3 — 78.3 —

Money market mutual funds - restricted cash and marketable securities and other assets $ 62 $ 62 $ 62 $ — $ —

Bonds and fixed income - restricted cash and marketable securities and other assets

Derivative and hedging assets - other assets 55 55 — 55 —

Total assets $ 207 $ 207 $ 62 $ 145 $ —

Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities $ 79.6 $ 79.6 $ — $ 79.6 $ —

Derivative and hedging liabilities - other long-term liabilities $ 72 $ 72 $ — $ 72 $ —

Contingent consideration - other accrued liabilities and other long-term liabilities 65 65 — — 65

Total liabilities $ 137 $ 137 $ — $ 72 $ 65

The carrying value of our total debt was $ 12.6 billion and $ 12.8 billion as of September 30, 2024 and December 31, 2023, respectively, and the fair value of our total debt was $ 12.4 billion and $ 12.5 billion as of September 30, 2024 and December 31, 2023, respectively.

The estimated fair value of our fixed rate senior notes, debentures and certain tax-exempt financings 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, 2024 and December 31, 2023.

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

As of March 31, 2025 and December 31, 2024, the carrying value of our total debt was $ 13.3 billion and $ 12.7 billion, respectively, and the fair value of our total debt was $ 12.9 billion and $ 12.2 billion, respectively.

The estimated fair value of

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

our fixed rate senior notes, debentures and certain tax-exempt financings 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 March 31, 2025 and December 31, 2024.

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

Contingent Consideration

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, 2024, the Sonoma contingent consideration represents the fair value of $ 57.8 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, 2025, the Sonoma contingent consideration represents the fair value of $ 57 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 $ 105 million.

During the nine months ended September 30, 2024, 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, 2025, 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.

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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.

Adjusted EBITDA is the single financial measure our chief operating decision maker (CODM) uses to evaluate operating segment profitability and determine resource allocations.

Summarized financial information concerning our reportable segments for the three months ended September 30, 2024 and 2023 follows:

Group 1 Group 2 Recycling & Waste Subtotal (1)

(Environmental Solutions) Corporate entities and other Total

Three Months Ended September 30, 2024

Gross Revenue $ 2,122.3 $ 2,005.4 $ 4,127.7 $ 467.4 $ 85.1 $ 4,680.2

Intercompany Revenue ( 310.2 ) ( 266.9 ) ( 577.1 ) ( 11.6 ) ( 15.3 ) ( 604.0 )

Revenue allocations 31.9 29.0 60.9 8.9 ( 69.8 ) —

Net Revenue $ 1,844.0 $ 1,767.5 $ 3,611.5 $ 464.7 $ — $ 4,076.2

Adjusted EBITDA $ 615.8 $ 569.2 $ 1,185.0 $ 118.3 $ — $ 1,303.3

Capital Expenditures $ 249.8 $ 155.2 $ 405.0 $ 32.6 $ 16.1 $ 453.7

Total Assets $ 13,784.1 $ 11,059.3 $ 24,843.4 $ 4,438.9 $ 2,531.9 $ 31,814.2

Three Months Ended September 30, 2023

Gross Revenue $ 2,000.3 $ 1,927.1 $ 3,927.4 $ 424.3 $ 62.5 $ 4,414.2

Intercompany Revenue ( 294.6 ) ( 261.9 ) ( 556.5 ) ( 14.4 ) ( 17.4 ) ( 588.3 )

Revenue allocations 26.0 24.2 50.2 ( 5.1 ) ( 45.1 ) —

Net Revenue $ 1,731.7 $ 1,689.4 $ 3,421.1 $ 404.8 $ — $ 3,825.9

Adjusted EBITDA $ 553.9 $ 500.4 $ 1,054.3 $ 91.4 $ — $ 1,145.7

Capital Expenditures $ 165.0 $ 141.4 $ 306.4 $ 24.9 $ 37.7 $ 369.0

Total Assets $ 13,112.6 $ 10,866.4 $ 23,979.0 $ 3,982.4 $ 2,081.4 $ 30,042.8

(1) The Recycling & Waste Subtotal represents the combined results of our Group 1 and Group 2 reportable segments.

Our chief operating decision maker (CODM) is Jon Vander Ark, President and Chief Executive Officer of Republic Services, Inc.

Adjusted EBITDA is the single financial measure our CODM uses to evaluate segment profitability and returns, which informs resource allocation.

For all segments, the CODM uses adjusted EBITDA to evaluate income generated from segment assets (return on invested capital).

The CODM considers budget-to-actual variances and year-over-year growth on a monthly basis to assess the performance of each segment.

Cost of operations and selling, general and administrative are significant segment expenses used in the evaluation.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Summarized financial information concerning our reportable segments for the nine months ended September 30, 2024 and 2023 follows:

Summarized financial information concerning our reportable segments for the three months ended March 31, 2025 and 2024 follows:

Group 1 Group 2 Recycling & Waste Subtotal (1)

(Environmental Solutions) Corporate entities and other Total

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Gross Revenue $ 2,065 $ 1,978 $ 4,043 $ 455 $ 95 $ 4,593

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Net Revenue 1,798 1,762 3,560 449 — 4,009

Cost of Operations 1,012 1,017 2,029 285 — 2,314

SG&A 185 168 353 74 — 427

Adjusted EBITDA $ 601 $ 577 $ 1,178 $ 90 $ — $ 1,268

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Total Assets $ 14,007 $ 11,308 $ 25,315 $ 5,126 $ 2,662 $ 33,103

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Gross Revenue $ 1,971 $ 1,960 $ 3,931 $ 429 $ 79 $ 4,439

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Net Revenue 1,706 1,732 3,438 $ 424 — 3,862

Cost of Operations 989 1,028 2,017 266 — 2,283

SG&A 174 169 343 71 — 414

Adjusted EBITDA $ 543 $ 535 $ 1,078 $ 87 $ — $ 1,165

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(1) The Recycling & Waste Subtotal represents the combined results of our Group 1 and Group 2 reportable segments.

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

Corporate entities and other includes marketing, operations support, business development, legal, tax, treasury, information technology, risk management, human resources and other administrative functions.

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.

Revenue and overhead costs of Corporate entities and other are either specifically assigned or allocated on a rational and consistent basis among our reportable segments to calculate Adjusted EBITDA.

As presented in the tables below, Adjusted EBITDA reflects certain adjustments for US Ecology, Inc., acquisition, integration and deal costs, (income) losses from unconsolidated equity method investments, settlements and withdrawals on pension plans, losses on extinguishment of debt and restructuring expenses.

This presentation is consistent with how our CODM reviews results of operations to make resource allocation decisions.

As presented in the table below, Adjusted EBITDA reflects certain adjustments for losses from unconsolidated equity method investments, restructuring expenses, and a gain on business divestitures and impairments, net.

This presentation is consistent with how our CODM reviews our results of operations to make resource allocation decisions.

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.

A reconciliation of the Company's single measure of segment profitability (segment Adjusted EBITDA) to Income before income tax provision in the Consolidated Statements of Net Income is as follows:

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

A reconciliation of the Company's single measure of segment profitability (segment Adjusted EBITDA) to Income before income tax provision in the Consolidated Statements of Net Income is as follows:

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

2024 2023 2024 2023

Three Months Ended March 31,

Group 1 Adjusted EBITDA $ 601 $ 543

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Accretion 28 27

Loss (income) from unconsolidated equity method investment 73.4 ( 2.8 ) 116.0 ( 0.2 )

Loss on extinguishment of debt and other related costs 2.4 — 2.4 0.2

Loss from unconsolidated equity method investment 12 9

Restructuring charges 4 6

US Ecology, Inc.

acquisition integration and deal costs — 6.2 — 24.3

Loss (gain) on business divestitures and impairments, net 0.5 ( 1.5 ) ( 0.9 ) ( 1.5 )

Gain on business divestitures and impairments, net ( 2 ) —

Income before income taxes $ 665 $ 599

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, 2024 and 2023 (in millions of dollars and as a percentage of revenue):

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

2024 2023 2024 2023

The following table disaggregates our revenue by service line for the three months ended March 31, 2025 and 2024 (in millions of dollars and as a percentage of revenue):

Three Months Ended March 31,

$ 743 18.6 % $ 723 18.7 %

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

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

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

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

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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.

Environmental solutions revenue is primarily generated from the fees we charge for the collection, treatment, consolidation, disposal and recycling of hazardous and non-hazardous waste, field and industrial services, equipment rental, emergency response and standby services and in-plant services, such as transportation and logistics, including at our transfer, storage and disposal facilities (TSDF).

Activity for this service line varies across markets and reflects the regulatory environment, pricing and disposal alternatives available in any given market.

Revenue recognized is variable in nature and primarily based on the volume and type of waste accepted or processed during the period.

For certain field and industrial services contracts, we have a right to consideration from our customers in an amount that corresponds directly with the value to the customer of the

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Company's performance completed to date.

For certain field and industrial services contracts, we have a right to consideration from our customers in an amount that corresponds directly with the value to the customer of the Company's performance completed to date.

Therefore, we have applied the practical expedient to recognize revenue in the amount to which we have the right to invoice.

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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, 2023 was recognized as revenue during the nine months ended September 30, 2024 when the service was performed.

Substantially all of the deferred revenue recognized as of December 31, 2024 was recognized as revenue during the three months ended March 31, 2025 when the service was performed.

Deferred Contract Costs

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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, 2024 and December 31, 2023, we recognized $ 82.3 million and $ 82.5 million, respectively, of deferred contract costs and capitalized sales commissions.

During the three and nine months ended September 30, 2024, we amortized $ 3.6 million and $ 11.5 million, respectively, of capitalized sales commissions to selling, general and administrative expenses and we amortized $ 1.0 million and $ 3.1 million, respectively, of other deferred contract costs as a reduction of revenue.

During the three and nine months ended September 30, 2023, we amortized $ 3.5 million and $ 10.8 million, respectively, of capitalized sales commissions to selling, general and administrative expenses and we amortized $ 1.2 million and $ 4.0 million, respectively, of other deferred contract costs as a reduction of revenue.

For the periods ended March 31, 2025 and December 31, 2024, we recognized $ 82 million of deferred contract costs and capitalized sales commissions.

During both the three months ended March 31, 2025 and 2024, we amortized $ 1 million of other deferred contract costs as a reduction of revenue and we amortized $ 4 million of capitalized sales commissions to selling, general and administrative expenses.

Credit Losses

Accounts receivable represent receivables from customers for environmental services, including collection and processing of recyclable materials, collection, transfer, and disposal of solid waste, and other environmental solutions.

Our receivables are recorded when billed or when the related revenue is earned and represent claims against third parties that will be settled in cash.

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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, 2024 and 2023:

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The following table reflects the activity in our allowance for doubtful accounts for the three months ended March 31, 2025 and 2024:

Balance at beginning of year $ 74 $ 83

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Although we cannot predict the ultimate outcome of any legal matter with certainty, we do not believe the outcome of any of our pending legal proceedings will have a material adverse impact on our consolidated financial position, results of operations or cash flows.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

As used herein, the term legal proceedings refers to litigation and similar claims against us and our subsidiaries, excluding:

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

We have recorded an aggregate accrual of approximately $ 13 million relating to our outstanding legal proceedings as of September 30, 2024.

We have recorded an aggregate accrual of approximately $ 13 million relating to our outstanding legal proceedings as of March 31, 2025.

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.

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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 $ 8 million higher than the amount recorded as of September 30, 2024.

If we had used the high ends of such ranges, our aggregate potential liability would be approximately $ 6 million higher than the amount recorded as of March 31, 2025.

Multiemployer Pension Plans

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We accrue for such events when losses become probable and reasonably estimable.

REPUBLIC SERVICES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents

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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, 2024 December 31, 2023 September 30, 2023 December 31, 2022

March 31, 2025 December 31, 2024 March 31, 2024 December 31, 2023

Cash and cash equivalents $ 83 $ 74 $ 92 $ 140

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Cash, cash equivalents, restricted cash and restricted cash equivalents $ 224 $ 203 $ 158 $ 228

Our restricted cash and marketable securities includes amounts 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 amounts 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 and restricted cash and marketable securities related to our insurance obligations.

The following table summarizes our restricted cash and marketable securities:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Capping, closure and post-closure obligations $ 63 $ 59

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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