REPUBLIC SERVICES, INC. 10-Q

ITEM 1. FINANCIAL STATEMENTS. REPUBLIC SERVICES, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) June 30, December 31, 2025 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 122 $ 74 Accounts receivable, less allowance for doubtful accounts and other of $ 66 and $ 74 , respectively 1,880 1,821 Prepaid expenses and other current assets 414 511 Total current assets 2,416 2,406 Restricted cash and marketable securities 224 208 Property and equipment, net 12,049 11,877 Goodwill 16,626 15,982 Other intangible assets, net 612 546 Other assets 1,470 1,383 Total assets $ 33,397 $ 32,402 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,199 $ 1,345 Notes payable and current maturities of long-term debt 421 862 Deferred revenue 490 485 Accrued landfill and environmental costs, current portion 141 159 Accrued interest 110 101 Other accrued liabilities 1,286 1,176 Total current liabilities 3,647 4,128 Long-term debt, net of current maturities 12,546 11,851 Accrued landfill and environmental costs, net of current portion 2,541 2,432 Deferred income taxes and other long-term tax liabilities, net 1,604 1,594 Insurance reserves, net of current portion 427 402 Other long-term liabilities 580 588 Commitments and contingencies Stockholders’ equity: Preferred stock, par value $ 0.01 per share; 50 shares authorized; none issued — — Common stock, par value $ 0.01 per share; 750 shares authorized; 313 and 313 issued including shares held in treasury, respectively 3 3 Additional paid-in capital 1,801 1,767 Retained earnings 10,455 9,774 Treasury stock, at cost; 1 and 1 shares, respectively ( 181 ) ( 113 ) Accumulated other comprehensive loss, net of tax ( 28 ) ( 26 ) Total Republic Services, Inc. stockholders’ equity 12,050 11,405 Non-controlling interests in consolidated subsidiary 2 2 Total stockholders’ equity 12,052 11,407 Total liabilities and stockholders’ equity $ 33,397 $ 32,402 The accompanying notes are an integral part of these statements. 3 Table of Contents REPUBLIC SERVICES, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 4,235 $ 4,048 $ 8,244 $ 7,910 Expenses: Cost of operations 2,449 2,383 4,763 4,666 Depreciation, depletion and amortization 463 413 897 812 Accretion 28 27 57 53 Selling, general and administrative 425 407 852 822 Loss (gain) on business divestitures and impairments, net 3 ( 2 ) 1 ( 2 ) Restructuring charges 6 6 9 12 Operating income 861 814 1,665 1,547 Interest expense ( 145 ) ( 128 ) ( 285 ) ( 268 ) Loss from unconsolidated equity method investments ( 2 ) ( 34 ) ( 14 ) ( 42 ) Interest income 2 1 4 3 Other income, net 4 1 15 13 Income before income taxes 720 654 1,385 1,253 Provision for income taxes 170 142 340 287 Net income 550 512 1,045 966 Net income attributable to non-controlling interests in consolidated subsidiary — — — ( 1 ) Net income attributable to Republic Services, Inc. $ 550 $ 512 $ 1,045 $ 965 Basic earnings per share attributable to Republic Services, Inc. stockholders: Basic earnings per share $ 1.76 $ 1.62 $ 3.34 $ 3.06 Weighted average common shares outstanding 313.1 314.9 313.0 315.1 Diluted earnings per share attributable to Republic Services, Inc. stockholders: Diluted earnings per share $ 1.75 $ 1.62 $ 3.33 $ 3.06 Weighted average common and common equivalent shares outstanding 313.4 315.2 313.3 315.5 Cash dividends per common share $ 0.580 $ 0.535 $ 1.160 $ 1.070 The accompanying notes are an integral part of these statements. 4 Table of Contents REPUBLIC SERVICES, INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income $ 550 $ 512 $ 1,045 $ 966 Other comprehensive income (loss), net of tax 3 ( 4 ) ( 2 ) 3 Comprehensive income 553 508 1,043 969 Comprehensive income attributable to non-controlling interests — — — ( 1 ) Comprehensive income attributable to Republic Services, Inc. $ 553 $ 508 $ 1,043 $ 968 The accompanying notes are an integral part of these statements. 5 Table of Contents REPUBLIC SERVICES, INC. UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in millions) Republic Services, Inc. Stockholders’ Equity Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss, Net of Tax Non-controlling Interests In Consolidated Subsidiary Shares Amount Shares Amount Total Balance as of December 31, 2024 313 $ 3 $ 1,767 $ 9,774 ( 1 ) $ ( 113 ) $ ( 26 ) $ 2 $ 11,407 Net income — — — 495 — — — — 495 Other comprehensive loss — — — — — — ( 5 ) — ( 5 ) Cash dividends declared — — — ( 181 ) — — — — ( 181 ) Issuances of common stock — — 3 — — ( 22 ) — — ( 19 ) Stock-based compensation — — 14 ( 1 ) — — — — 13 Purchase of common stock for treasury — — — — — ( 45 ) — — ( 45 ) Balance as of March 31, 2025 313 3 1,784 10,087 ( 1 ) ( 180 ) ( 31 ) 2 11,665 Net income — — — 550 — — — — 550 Other comprehensive income — — — — — — 3 — 3 Cash dividends declared — — — ( 182 ) — — — — ( 182 ) Issuances of common stock — — 6 — — ( 1 ) — — 5 Stock-based compensation — — 11 — — — — — 11 Balance as of June 30, 2025 313 $ 3 $ 1,801 $ 10,455 ( 1 ) $ ( 181 ) $ ( 28 ) $ 2 $ 12,052 Republic Services, Inc. Stockholders’ Equity Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss, Net of Tax Non-controlling Interests In Consolidated Subsidiary Shares Amount Shares Amount Total Balance as of December 31, 2023 321 $ 3 $ 2,901 $ 8,434 ( 6 ) $ ( 784 ) $ ( 12 ) $ 1 $ 10,543 Net income — — — 454 — — — — 454 Other comprehensive income — — — — — — 7 — 7 Cash dividends declared — — — ( 169 ) — — — — ( 169 ) Issuances of common stock — — 3 — — ( 28 ) — — ( 25 ) Stock-based compensation — — 12 ( 1 ) — — — — 11 Balance as of March 31, 2024 321 3 2,916 8,718 ( 6 ) ( 812 ) ( 5 ) 1 10,821 Net income — — — 512 — — — — 512 Other comprehensive loss — — — — — — ( 4 ) — ( 4 ) Cash dividends declared — — — ( 168 ) — — — — ( 168 ) Issuances of common stock — — 5 — — ( 1 ) — — 4 Stock-based compensation — — 11 ( 1 ) — — — — 10 Purchase of common stock for treasury — — — — ( 1 ) ( 169 ) — — ( 169 ) Balance as of June 30, 2024 321 $ 3 $ 2,932 $ 9,061 ( 7 ) $ ( 982 ) $ ( 9 ) $ 1 $ 11,006 The accompanying notes are an integral part of these statements. 6 Table of Contents REPUBLIC SERVICES, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Six Months Ended June 30 2025 2024 Cash provided by operating activities: Net income $ 1,045 $ 966 Adjustments to reconcile net income to cash provided by operating activities: Depreciation, depletion, amortization and accretion 954 865 Non-cash interest expense 37 35 Stock-based compensation 23 22 Deferred tax (benefit) provision ( 8 ) 48 Provision for doubtful accounts, net of adjustments 18 20 Loss on disposition of assets and asset impairments, net 1 — Loss from unconsolidated equity method investments 14 42 Other non-cash items ( 5 ) ( 1 ) Change in assets and liabilities, net of effects from business acquisitions and divestitures: Accounts receivable ( 51 ) ( 69 ) Prepaid expenses and other assets 21 36 Accounts payable ( 13 ) 19 Capping, closure and post-closure expenditures ( 21 ) ( 22 ) Remediation expenditures ( 19 ) ( 27 ) Other liabilities 138 ( 47 ) Proceeds for retirement of certain hedging relationships — 24 Cash provided by operating activities 2,134 1,911 Cash used in investing activities: Purchases of property and equipment ( 866 ) ( 918 ) Proceeds from sales of property and equipment 8 5 Cash used in acquisitions and investments, net of cash and restricted cash acquired ( 963 ) ( 201 ) Cash received from business divestitures 7 2 Purchases of restricted marketable securities ( 9 ) ( 17 ) Sales of restricted marketable securities 8 16 Cash used in investing activities ( 1,815 ) ( 1,113 ) Cash used in financing activities: Proceeds from credit facilities and notes payable, net of fees 20,025 10,484 Proceeds from issuance of senior notes, net of discount and fees 1,183 889 Payments of credit facilities and notes payable ( 21,030 ) ( 11,274 ) Issuances of common stock, net ( 14 ) ( 21 ) Purchases of common stock for treasury ( 59 ) ( 168 ) Cash dividends paid ( 362 ) ( 337 ) Contingent consideration payments ( 3 ) ( 8 ) Cash used in financing activities ( 260 ) ( 435 ) Effect of foreign exchange rate changes on cash 1 1 Increase in cash, cash equivalents, restricted cash and restricted cash equivalents 60 364 Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period 203 228 Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period $ 263 $ 592 The accompanying notes are an integral part of these statements. 7 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION 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. 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 waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada. Group 3 is our environmental solutions business operating in geographic areas located across the United States and Canada. These groups represent our reportable segments, which each provide integrated environmental services, including but not limited to collection, transfer, recycling, and disposal. The unaudited consolidated financial statements include the accounts of Republic Services, Inc. and its wholly owned and majority owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). We account for investments in entities in which we do not have a controlling financial interest under the equity method of accounting or, for investments that do not meet the criteria to be accounted for under the equity method, we reflect these investments at their fair value when it is readily determinable. If fair value is not readily determinable, we use an alternative measurement approach. All material intercompany accounts and transactions have been eliminated in consolidation. We have prepared these unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments that, unless otherwise disclosed, are of a normal recurring nature and necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of the results you can expect for a full year. You should read these financial statements in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. For comparative purposes, certain prior year amounts have been reclassified to conform to the current year presentation and are not material to our consolidated financial statements. All dollar amounts in tabular presentations are in millions, except per share amounts and unless otherwise noted. Management’s Estimates and Assumptions In preparing our financial statements, we make numerous estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. 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 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. Our actual results may differ significantly from our estimates. 8 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) New Accounting Pronouncements Accounting Standards Updates Issued but not yet Adopted Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity In May 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity (ASU 2025-03), revising guidance on identifying the accounting acquirer in business combinations involving variable interest entities (VIEs). In accordance with ASU 2025-03, when a reporting entity exchanges equity interests in a business combination, it must evaluate specific factors to determine the accounting acquirer, irrespective of the legal acquiree's classification as a VIE. This may lead to the conclusion that a VIE involves a reverse acquisition, treating the legal acquirer as the acquiree for accounting purposes. This update improves comparability with combinations including voting interest entities (VOEs) and will be effective for fiscal years starting after December 15, 2026. Disaggregation of Income Statement Expenses In November 2024, the 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, 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 ASU 2024-03 on its future consolidated financial statements. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires entities to provide additional information in the rate reconciliation and additional disclosures about income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024. 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. 9 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 2. BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES Acquisitions We acquired various environmental services businesses during the six months ended June 30, 2025 and 2024. The aggregate purchase price paid for these business acquisitions and the allocations of the aggregate purchase price follows: 2025 2024 Purchase price: Cash used in acquisitions, net of cash acquired of $ 7 and $ 1 , respectively $ 862 $ 41 Holdbacks 11 — Total $ 873 $ 41 Allocated as follows: Accounts receivable $ 27 $ 2 Prepaid expenses 2 — Property and equipment 136 20 Operating right-of-use lease assets 17 — Other assets 2 — Accounts payable ( 5 ) — Deferred revenue ( 1 ) — Environmental remediation liabilities ( 12 ) — Operating right-of-use lease liabilities ( 17 ) — Deferred income tax liabilities ( 16 ) ( 1 ) Other liabilities ( 2 ) — Fair value of tangible assets acquired and liabilities assumed 131 21 Excess purchase price to be allocated $ 742 $ 20 Excess purchase price allocated as follows: Other intangible assets $ 110 $ 4 Goodwill 632 16 Total allocated $ 742 $ 20 Certain of the purchase price allocations are preliminary and based on information existing at the acquisition dates. 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 six months ended June 30, 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 February 2025, we acquired all of the issued and outstanding shares of COP Shamrock Parent, Inc. (Shamrock). 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. Investments 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 $ 50 million and $ 91 million, which were recorded to other assets in our unaudited consolidated balance sheets during the six months ended June 30, 2025 and 2024, respectively . During the three and six months ended June 30, 2025 , the carrying value of these investments was increased by $ 3 million and decreased by $ 5 million, respectively, as a result of our share of income and loss pursuant to the terms of the limited liability company agreements . During the three and six months ended June 30, 2024 , we decreased the carrying value of these investments by $ 33 million and $ 42 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 10 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 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 June 30, 2025 and December 31, 2024 , our carrying value in the joint venture was $ 39 million and $ 35 million, respectively. During the six months ended June 30, 2025 and 2024, we contributed $ 4 million and $ 31 million, respectively, 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. 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 June 30, 2025 and December 31, 2024 , our carrying value in the joint venture was approximately $ 270 million . 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 June 30, 2025 and December 31, 2024 , our carrying value in the joint venture was $ 72 million and $ 55 million, respectively. During the six months ended June 30, 2025 and 2024, we contributed $ 21 million and $ 14 million, respectively, 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 sheet as of June 30, 2025. Restructuring Charges During the three and six months ended June 30, 2025 , we incurred restructuring charges of $ 6 million and $ 9 million , respectively, and during the three and six months ended June 30, 2024 , we incurred restructuring charges of $ 6 million and $ 12 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. During the six months ended June 30, 2025 and 2024, we paid $ 7 million and $ 10 million, respectively, related to these restructuring efforts. 3. GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill A summary of the activity and balances in goodwill accounts by reporting segment follows: Balance as of December 31, 2024 Acquisitions Divestitures Adjustments and Other Balance as of June 30, 2025 Group 1 $ 7,492 $ 36 $ — $ 5 $ 7,533 Group 2 6,438 70 ( 1 ) 6 6,513 Group 3 2,052 526 ( 1 ) 3 2,580 Total $ 15,982 $ 632 $ ( 2 ) $ 14 $ 16,626 Adjustments to acquisitions during the six months ended June 30, 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. 11 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Other Intangible Assets, Net 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: Gross Intangible Assets Accumulated Amortization Balance as of December 31, 2024 Acquisitions Adjustments and Other Balance as of June 30, 2025 Balance as of December 31, 2024 Additions Charged to Expense Adjustments and Other Balance as of June 30, 2025 Other Intangible Assets, Net as of June 30, 2025 Customer relationships $ 690 $ 109 $ — $ 799 $ ( 215 ) $ ( 39 ) $ — $ ( 254 ) $ 545 Other intangible assets 91 1 ( 1 ) 91 ( 20 ) ( 4 ) — ( 24 ) 67 Total $ 781 $ 110 $ ( 1 ) $ 890 $ ( 235 ) $ ( 43 ) $ — $ ( 278 ) $ 612 4. OTHER ASSETS Prepaid Expenses and Other Current Assets A summary of prepaid expenses and other current assets as of June 30, 2025 and December 31, 2024 follows: 2025 2024 Other non-trade receivables $ 123 $ 96 Parts and supplies 104 98 Prepaid expenses 99 127 Prepaid fees for cloud-based hosting arrangements, current 31 27 Reinsurance receivable 30 30 Income taxes receivable 18 124 Other 9 9 Total $ 414 $ 511 Other Assets A summary of other assets as of June 30, 2025 and December 31, 2024 follows: 2025 2024 Investments $ 703 $ 637 Operating right-of-use lease assets 236 232 Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements 145 123 Deferred compensation plan 128 125 Reinsurance receivable 89 86 Deferred contract costs and sales commissions 81 82 Derivative and hedging assets 36 55 Amounts recoverable for capping, closure and post-closure obligations 27 24 Other 25 19 Total $ 1,470 $ 1,383 12 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 5. OTHER LIABILITIES Other Accrued Liabilities A summary of other accrued liabilities as of June 30, 2025 and December 31, 2024 follows: 2025 2024 Accrued payroll and benefits $ 298 $ 339 Accrued fees and taxes 291 206 Insurance reserves, current 241 220 Accrued dividends 182 181 Operating right-of-use lease liabilities, current 55 55 Ceded insurance reserves, current 30 30 Contingent purchase price and acquisition holdbacks 24 14 Accrued professional fees and legal settlement reserves 17 12 Other 148 119 Total $ 1,286 $ 1,176 Other Long-Term Liabilities A summary of other long-term liabilities as of June 30, 2025 and December 31, 2024 follows: 2025 2024 Operating right-of-use lease liabilities $ 194 $ 189 Deferred compensation plan liability 130 120 Ceded insurance reserves 89 86 Contingent purchase price and acquisition holdbacks 60 60 Derivative and hedging liabilities 52 72 Withdrawal liability - multiemployer pension funds 19 19 Other 36 42 Total $ 580 $ 588 13 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 6. LANDFILL AND ENVIRONMENTAL COSTS As of June 30, 2025, we owned or operated 208 active landfills with total available disposal capacity estimated to be 5.1 billion in-place cubic yards. Additionally, we had post-closure responsibility for 125 closed landfills. Accrued Landfill and Environmental Costs A summary of accrued landfill and environmental liabilities as of June 30, 2025 and December 31, 2024 follows: 2025 2024 Landfill final capping, closure and post-closure liabilities $ 2,224 $ 2,144 Environmental remediation 458 447 Total accrued landfill and environmental costs 2,682 2,591 Less: current portion ( 141 ) ( 159 ) Long-term portion $ 2,541 $ 2,432 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, 2025 and 2024: 2025 2024 Asset retirement obligation liabilities, beginning of year $ 2,144 $ 1,937 Non-cash additions 39 30 Acquisitions, net of divestitures and other adjustments 1 4 Asset retirement obligation adjustments 4 3 Payments ( 21 ) ( 22 ) Accretion expense 57 53 Asset retirement obligation liabilities, end of period 2,224 2,005 Less: current portion ( 79 ) ( 74 ) Long-term portion $ 2,145 $ 1,931 We review annually, in the fourth quarter, and update as necessary, our estimates of asset retirement obligation liabilities. However, if there are significant changes in the facts and circumstances related to a site during the year, we will update our assumptions prospectively in the period that we know all the relevant facts and circumstances and make adjustments as appropriate. Landfill Operating Expenses In the normal course of business, we incur various operating costs associated with environmental compliance. These costs include, among other things, leachate treatment and disposal, methane gas and groundwater monitoring, systems maintenance, interim cap maintenance, costs associated with the application of daily cover materials, and the legal and administrative costs of ongoing environmental compliance. These costs are expensed as cost of operations in the periods in which they are incurred. Environmental Remediation Liabilities We accrue for remediation costs when they become probable and can be reasonably estimated. There can sometimes be a range of reasonable estimates of the costs associated with remediation of a site. In these cases, we use the amount within the range that constitutes our best estimate. If no amount within the range appears to be a better estimate than any other, we use the amount that is at the low end of such range. It is reasonably possible that we will need to adjust the liabilities recorded for remediation to reflect the effects of new or additional information, to the extent such information impacts the costs, timing or duration of the required actions. If we used the reasonably possible high ends of our ranges, our aggregate potential remediation liability as of June 30, 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. 14 Table of Contents 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, 2025 and 2024: 2025 2024 Environmental remediation liabilities, beginning of year $ 447 $ 485 Payments ( 19 ) ( 27 ) Accretion expense (non-cash interest expense) 9 9 Acquisitions, net of divestitures and other adjustments 21 1 Environmental remediation liabilities, end of period 458 468 Less: current portion ( 62 ) ( 66 ) Long-term portion $ 396 $ 402 Bridgeton Landfill. During the six months ended June 30, 2025, we paid $ 5 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, 2025, the remediation liability recorded for this site was $ 57 million, of which approximately $ 5 million is expected to be paid during the remainder of 2025. West Lake Landfill Superfund Site . Our subsidiary Bridgeton Landfill, LLC is one of several currently designated Potentially Responsible Parties for the West Lake Landfill Superfund site (West Lake) in Missouri. On September 27, 2018, the United States Environmental Protection Agency (EPA) issued a Record of Decision Amendment for West Lake that includes a total undiscounted cost estimate of $ 229 million over a four to five year design and construction timeline. 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. However, subsequent events related to remedy design, divisibility, or allocation may require us to modify our expected remediation liability. 15 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 7. DEBT The carrying value of our credit facilities, finance leases and long-term debt as of June 30, 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. June 30, 2025 December 31, 2024 Maturity Interest Rate Principal Adjustments Carrying Value Principal Adjustments Carrying Value Credit facilities: Uncommitted Credit Facility Variable $ 32 $ — $ 32 $ — $ — $ — The Credit Facility Variable 156 — 156 514 — 514 Commercial Paper Variable 318 — 318 477 — 477 Senior notes: March 2025 3.200 — — — 500 — 500 November 2025 0.875 350 — 350 350 — 350 July 2026 2.900 500 ( 1 ) 499 500 ( 1 ) 499 November 2027 3.375 650 ( 1 ) 649 650 ( 2 ) 648 May 2028 3.950 800 ( 6 ) 794 800 ( 7 ) 793 April 2029 4.875 750 ( 6 ) 744 750 ( 6 ) 744 November 2029 5.000 400 ( 4 ) 396 400 ( 4 ) 396 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 February 2032 1.750 750 ( 5 ) 745 750 ( 5 ) 745 March 2033 2.375 700 ( 6 ) 694 700 ( 6 ) 694 December 2033 5.000 650 ( 8 ) 642 650 ( 9 ) 641 April 2034 5.000 800 ( 9 ) 791 800 ( 10 ) 790 November 2034 5.200 500 ( 5 ) 495 500 ( 6 ) 494 March 2035 6.086 182 ( 11 ) 171 182 ( 11 ) 171 March 2035 5.150 700 ( 10 ) 690 — — — March 2040 6.200 400 ( 3 ) 397 400 ( 3 ) 397 May 2041 5.700 386 ( 5 ) 381 386 ( 5 ) 381 March 2050 3.050 400 ( 6 ) 394 400 ( 7 ) 393 Debentures: September 2035 7.400 148 ( 27 ) 121 148 ( 27 ) 121 Tax-exempt: 2026 - 2054 3.350 - 4.375 1,418 ( 9 ) 1,409 1,418 ( 9 ) 1,409 Finance leases and other: 2025 - 2063 1.726 - 9.750 363 — 363 315 — 315 Total Debt $ 13,103 $ ( 136 ) 12,967 $ 12,840 $ ( 127 ) 12,713 Less: current portion ( 421 ) ( 862 ) Long-term portion $ 12,546 $ 11,851 16 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Credit Facilities Uncommitted Credit Facility In January 2022, we entered into a $ 200 million unsecured uncommitted revolving credit facility (the Uncommitted Credit Facility). The Uncommitted Credit Facility bears interest at an annual percentage rate to be agreed upon by both parties. Borrowings under the Uncommitted Credit Facility can be used for working capital, letters of credit, and other general corporate purposes. The agreement governing our Uncommitted Credit Facility requires us to comply with certain covenants. The Uncommitted Credit Facility may be terminated by either party at any time. As of June 30, 2025, we had $ 32 million of borrowings outstanding under our Uncommitted Credit Facility. As of December 31, 2024, we had no borrowings outstanding under our Uncommitted Credit Facility. The Credit Facility 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 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. 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. All loans to the Canadian Borrower and all loans denominated in Canadian dollars cannot exceed $ 1.0 billion (the Canadian Sublimit). The Canadian Sublimit is part of, and not in addition to, the aggregate commitments under the Credit Facility. 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 0.805 % based on our Debt Ratings (all as defined in the Credit Facility agreement). Canadian dollar-denominated loans bear interest based on the Canadian Prime Rate or the Canadian Dollar Offered Rate, plus a current applicable margin of 0.805 % based on our Debt Ratings. As of June 30, 2025 and December 31, 2024, C$ 213 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. The Credit Facility can be used for working capital, capital expenditures, acquisitions, letters of credit and other general corporate purposes. The Credit Facility agreement requires us to comply with financial and other covenants. We may pay dividends and repurchase common stock if we are in compliance with these covenants. We had $ 156 million and $ 514 million of borrowings outstanding under the Credit Facility as of June 30, 2025 and December 31, 2024, respectively. We had $ 322 million and $ 317 million of letters of credit outstanding under the Credit Facility as of June 30, 2025 and December 31, 2024, respectively. We also had $ 318 million and $ 477 million of principal borrowings outstanding (net of related discount on issuance) under the commercial paper program as of June 30, 2025 and December 31, 2024, respectively. As a result, availability under our Credit Facility was $ 2.7 billion and $ 2.2 billion as of June 30, 2025 and December 31, 2024, respectively. 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 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 June 30, 2025 is 4.568 % with a weighted average maturity of approximately 4 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 $ 318 million and $ 477 million principal value of commercial paper issued and outstanding under the program as of June 30, 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 June 30, 2025 and December 31, 2024, respectively. 17 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Senior Notes and Debentures In June 2024, we issued $ 400 million of 5.000 % senior notes due 2029 and $ 500 million of 5.200 % senior notes due 2034. We used the proceeds from the June 2024 notes issuance for general corporate purposes, including the repayment of a portion of amounts outstanding under the Commercial Paper Program and the Credit Facility; and repayment of the remaining amount outstanding under the Uncommitted Credit Facility and certain debt obligations. 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. Tax-Exempt Financings As of both June 30, 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 March 2024, the California Municipal Finance Authority issued, for our benefit, $ 100 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 California. 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. The holders of the bonds can put them back to the remarketing agents at the end of each interest period. 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 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 June 30, 2025 and December 31, 2024. Finance Leases and Other As of June 30, 2025 and December 31, 2024, we had finance leases and other liabilities of $ 363 million and $ 315 million, respectively, with maturities ranging from 2025 to 2063 for both periods. As of June 30, 2025, finance leases and other included $ 105 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. 8. INCOME TAXES Our effective tax rate, exclusive of non-controlling interests, for the three and six months ended June 30, 2025 was 23.6 % and 24.6 %, respectively. Our effective tax rate, exclusive of non-controlling interests, for the three and six months ended June 30, 2024, was 21.7 % and 22.9 %, respectively. For the six months ended June 30, 2025 and 2024, net cash paid for income taxes was $ 150 million and $ 109 million, respectively. On July 4, 2025, the One Big Beautiful Bill Act (the "Act”) was signed into law. The Act, among other things, implements changes to the tax treatment relating to bonus depreciation, research and experimental expenditures and interest expense, and includes phase-outs and restrictions on several clean energy tax incentives. We are evaluating the Act, and the total financial impact to the Company is unknown at this time. We have deferred tax assets related to state net operating loss carryforwards. We provide a partial valuation allowance due to uncertainty surrounding the future utilization of these carryforwards in the taxing jurisdictions where the loss carryforwards exist. When determining the need for a valuation allowance, we consider all positive and negative evidence, including recent financial results, scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies. The realization of our deferred tax asset for state loss carryforwards ultimately depends upon the existence of sufficient taxable 18 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) income in the appropriate state taxing jurisdictions in future periods. The weight given to the positive and negative evidence is commensurate with the extent such evidence can be objectively verified. We continue to regularly monitor both positive and negative evidence in determining the ongoing need for a valuation allowance. As of June 30, 2025, the valuation allowance associated with our state loss carryforwards was $ 39 million. 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. 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 these examinations. 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 2013 through 2023. We believe the recorded liabilities for uncertain tax positions are adequate. However, a significant assessment against us in excess of the liabilities recorded could have a material adverse effect on our consolidated financial position, results of operations and cash flows. As of June 30, 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 June 30, 2025, we accrued a liability for penalties of $ 1 million and a liability for interest (including interest on penalties) of $ 6 million related to our uncertain tax positions. 9. STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE Available Shares We currently have approximately 10 million shares of common stock reserved for future grants under the Republic Services, Inc. 2021 Stock Incentive Plan. Stock Repurchases In October 2023, our Board of Directors approved a $ 3.0 billion share repurchase authorization effective January 1, 2024 and extending through December 31, 2026. Share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws. While the Board of Directors has approved the 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 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 six months ended June 30, 2025 and 2024 follows (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Number of shares repurchased — 0.9 0.3 0.9 Amount paid $ — $ 168 $ 55 $ 168 Weighted average cost per share $ — $ 186.24 $ 201.40 $ 186.24 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 June 30, 2025 and 2024, there were no repurchased shares pending settlement. As of June 30, 2025, the remaining authorized purchase capacity under our October 2023 repurchase program was $ 2.5 billion. Dividends In April 2025, our Board of Directors approved a quarterly dividend of $ 0.580 per share. Cash dividends declared were $ 363 million for the six months ended June 30, 2025. As of June 30, 2025, we recorded a quarterly dividend payable of $ 182 million to shareholders of record at the close of business on July 2, 2025. 19 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Earnings per Share Basic earnings per share is computed by dividing net income attributable to Republic Services, Inc. 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. We use the treasury stock method in computing diluted earnings per share. Earnings per share for the three and six months ended June 30, 2025 and 2024 are calculated as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Basic earnings per share: Net income attributable to Republic Services, Inc. $ 549,905 $ 511,536 $ 1,044,902 $ 965,330 Weighted average common shares outstanding 313,074 314,910 313,020 315,102 Basic earnings per share $ 1.76 $ 1.62 $ 3.34 $ 3.06 Diluted earnings per share: Net income attributable to Republic Services, Inc. $ 549,905 $ 511,536 $ 1,044,902 $ 965,330 Weighted average common shares outstanding 313,074 314,910 313,020 315,102 Effect of dilutive securities: Unvested RSU awards 103 115 106 120 Unvested PSU awards 188 211 195 316 Weighted average common and common equivalent shares outstanding 313,365 315,236 313,321 315,538 Diluted earnings per share $ 1.75 $ 1.62 $ 3.33 $ 3.06 During the three and six months ended June 30, 2025 and 2024, there were no antidilutive securities outstanding. 10. 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, 2025 follows: Cash Flow Hedges Defined Benefit Pension Items Foreign Currency Translation Total Balance as of December 31, 2024 $ ( 13 ) $ — $ ( 13 ) $ ( 26 ) Other comprehensive income (loss) before reclassifications — 2 ( 2 ) — Amounts reclassified from accumulated other comprehensive loss — ( 2 ) — ( 2 ) Net current period other comprehensive loss — — ( 2 ) ( 2 ) Balance as of June 30, 2025 $ ( 13 ) $ — $ ( 15 ) $ ( 28 ) 20 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) A summary of reclassifications out of accumulated other comprehensive loss for the three and six months ended June 30, 2025 and 2024 follows: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 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 Gain (loss) on cash flow hedges: Terminated interest rate locks $ — $ ( 1 ) $ — $ ( 2 ) Interest expense 2022 interest rate swap — 10 — 14 Interest expense Total before tax — 9 — 12 Tax provision — ( 2 ) — ( 3 ) Net of tax — 7 — 9 Pension gains: Pension settlement 2 — 2 — Other income, net Tax provision — — — — Net of tax 2 — 2 — Total income reclassified into earnings, net of tax $ 2 $ 7 $ 2 $ 9 11. FINANCIAL INSTRUMENTS Fair Value Measurements In measuring fair values of assets and liabilities, we use valuation techniques that maximize the use of observable inputs (Level 1) and minimize the use of unobservable inputs (Level 3). 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. 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. 21 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) As of June 30, 2025 and December 31, 2024, our assets and liabilities that are measured at fair value on a recurring basis include the following: June 30, 2025 Fair Value Carrying Amount Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market mutual funds - restricted cash and marketable securities and other assets $ 67 $ 67 $ 67 $ — $ — Bonds and fixed income - restricted cash and marketable securities and other assets 94 94 — 94 — Derivative and hedging assets - other assets 36 36 — 36 — Total assets $ 197 $ 197 $ 67 $ 130 $ — Liabilities: Derivative and hedging liabilities - other long-term liabilities $ 52 $ 52 $ — $ 52 $ — Contingent consideration - other accrued liabilities and other long-term liabilities 64 64 — — 64 Total liabilities $ 116 $ 116 $ — $ 52 $ 64 December 31, 2024 Fair Value Carrying Amount Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: 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 90 90 — 90 — Derivative and hedging assets - other assets 55 55 — 55 — Total assets $ 207 $ 207 $ 62 $ 145 $ — Liabilities: 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 Total Debt As of June 30, 2025 and December 31, 2024, the carrying value of our total debt was $ 13.0 billion and $ 12.7 billion, respectively, and the fair value of our total debt was $ 12.7 billion and $ 12.2 billion, 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 June 30, 2025 and December 31, 2024. See Note 7, Debt , for further information related to our debt. 22 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 12. SEGMENT REPORTING 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 waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada. Group 3 is our environmental solutions business operating 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. 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. Summarized financial information concerning our reportable segments for the three months ended June 30, 2025 and 2024 follows: Group 1 Group 2 Recycling & Waste Subtotal (1) Group 3 (Environmental Solutions) Corporate entities and other Total Three Months Ended June 30, 2025 Gross Revenue $ 2,182 $ 2,141 $ 4,323 $ 466 $ 93 $ 4,882 Intercompany Revenue ( 329 ) ( 285 ) ( 614 ) ( 12 ) ( 21 ) ( 647 ) Revenue allocations 33 31 64 8 ( 72 ) — Net Revenue 1,886 1,887 3,773 462 — 4,235 Cost of Operations 1,081 1,083 2,164 285 — 2,449 SG&A 183 174 357 68 — 425 Adjusted EBITDA $ 622 $ 630 $ 1,252 $ 109 $ — $ 1,361 Capital Expenditures $ 217 $ 158 $ 375 $ 37 $ ( 5 ) $ 407 Total Assets $ 14,108 $ 11,433 $ 25,541 $ 5,128 $ 2,728 $ 33,397 Three Months Ended June 30, 2024 Gross Revenue $ 2,041 $ 2,053 $ 4,094 $ 480 $ 89 $ 4,663 Intercompany Revenue ( 308 ) ( 276 ) ( 584 ) ( 13 ) ( 18 ) ( 615 ) Revenue allocations 33 32 65 6 ( 71 ) — Net Revenue 1,766 1,809 3,575 473 — 4,048 Cost of Operations 1,021 1,068 2,089 294 — 2,383 SG&A 174 166 340 67 — 407 Adjusted EBITDA $ 571 $ 575 $ 1,146 $ 112 $ — $ 1,258 Capital Expenditures $ 132 $ 128 $ 260 $ 26 $ 117 $ 403 Total Assets $ 13,390 $ 11,224 $ 24,614 $ 4,462 $ 2,858 $ 31,934 (1) The Recycling & Waste Subtotal represents the combined results of our Group 1 and Group 2 reportable segments. 23 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Summarized financial information concerning our reportable segments for the six months ended June 30, 2025 and 2024 follows: Group 1 Group 2 Recycling & Waste Subtotal (1) Group 3 (Environmental Solutions) Corporate entities and other Total Six Months Ended June 30, 2025 Gross Revenue $ 4,247 $ 4,120 $ 8,367 $ 920 $ 186 $ 9,473 Intercompany Revenue ( 633 ) ( 536 ) ( 1,169 ) ( 25 ) ( 35 ) ( 1,229 ) Revenue allocations 69 66 135 16 ( 151 ) — Net Revenue 3,683 3,650 7,333 911 — 8,244 Cost of Operations 2,093 2,099 4,192 571 — 4,763 SG&A 369 342 711 141 — 852 Adjusted EBITDA $ 1,221 $ 1,209 $ 2,430 $ 199 $ — $ 2,629 Capital Expenditures $ 388 $ 268 $ 656 $ 72 $ 138 $ 866 Total Assets $ 14,108 $ 11,433 $ 25,541 $ 5,128 $ 2,728 $ 33,397 Six Months Ended June 30, 2024 Gross Revenue $ 4,012 $ 4,012 $ 8,024 $ 908 $ 171 $ 9,103 Intercompany Revenue ( 602 ) ( 531 ) ( 1,133 ) ( 25 ) ( 35 ) ( 1,193 ) Revenue allocations 62 61 123 13 ( 136 ) — Net Revenue 3,472 3,542 7,014 896 — 7,910 Cost of Operations 2,009 2,097 4,106 560 — 4,666 SG&A 348 336 684 138 — 822 Adjusted EBITDA $ 1,115 $ 1,109 $ 2,224 $ 198 $ — $ 2,422 Capital Expenditures $ 309 $ 267 $ 576 $ 61 $ 281 $ 918 Total Assets $ 13,390 $ 11,224 $ 24,614 $ 4,462 $ 2,858 $ 31,934 (1) The Recycling & Waste Subtotal represents the combined results of our Group 1 and Group 2 reportable segments. 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 table below, Adjusted EBITDA reflects certain adjustments for losses from unconsolidated equity method investments, restructuring expenses, and loss (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 for the three and six months ended June 30, 2025 largely included investments in our third polymer center as well as investments in our digital platforms. Capital expenditures for Corporate entities and other for the three and six months ended June 30, 2024 primarily included 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: 24 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Group 1 Adjusted EBITDA $ 622 $ 571 $ 1,221 $ 1,115 Group 2 Adjusted EBITDA 630 575 1,209 1,109 Group 3 Adjusted EBITDA 109 112 199 198 Total Adjusted EBITDA 1,361 1,258 2,629 2,422 Other income, net ( 4 ) ( 1 ) ( 15 ) ( 13 ) Interest income ( 2 ) ( 1 ) ( 4 ) ( 3 ) Interest expense 145 128 285 268 Depreciation, depletion and amortization 463 413 897 812 Accretion 28 27 57 53 Loss from unconsolidated equity method investment 2 34 14 42 Restructuring charges 6 6 9 12 Loss (gain) on business divestitures and impairments, net 3 ( 2 ) 1 ( 2 ) Income before income taxes $ 720 $ 654 $ 1,385 $ 1,253 13. 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, 2025 and 2024 (in millions of dollars and as a percentage of revenue): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Collection: Residential $ 752 17.8 % $ 733 18.1 % $ 1,496 18.1 % $ 1,457 18.4 % Small-container 1,259 29.7 1,201 29.7 2,502 30.3 2,390 30.2 Large-container 794 18.7 770 19.0 1,532 18.6 1,503 19.0 Other 17 0.4 19 0.5 35 0.4 36 0.5 Total collection 2,822 66.6 2,723 67.3 5,565 67.4 5,386 68.1 Transfer 479 458 903 877 Less: intercompany ( 258 ) ( 250 ) ( 494 ) ( 486 ) Transfer, net 221 5.2 208 5.1 409 5.0 391 4.9 Landfill 854 761 1,577 1,466 Less: intercompany ( 338 ) ( 321 ) ( 640 ) ( 621 ) Landfill, net 516 12.2 440 10.9 937 11.4 845 10.7 Environmental solutions 478 490 944 929 Less: intercompany ( 16 ) ( 17 ) ( 33 ) ( 33 ) Environmental solutions, net 462 10.9 473 11.7 911 11.1 896 11.3 Other: Recycling processing and commodity sales 114 2.7 107 2.7 222 2.7 203 2.6 Other non-core 100 2.4 97 2.3 200 2.4 189 2.4 Total other 214 5.1 204 5.0 422 5.1 392 5.0 Total revenue $ 4,235 100.0 % $ 4,048 100.0 % $ 8,244 100.0 % $ 7,910 100.0 % Other non-core revenue consists primarily of revenue from National Accounts, which represents the portion of revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local operators. Consequently, substantially all of this revenue is offset with related subcontract costs, which are recorded in cost of operations. 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. 25 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) See Note 12, Segment Reporting , for additional information regarding revenue by reportable segment. Revenue Recognition Our service obligations of a long-term nature, e.g., certain collection service contracts, are satisfied over time, and we recognize revenue based on the value provided to the customer during the period. The amount billed to the customer is based on variable elements such as the number of residential homes or businesses for which collection services are provided, the volume of material collected, treated, transported and disposed, and the nature of the material accepted. We do not disclose the value of unsatisfied performance obligations for these contracts as our right to consideration corresponds directly to the value provided to the customer for services completed to date and all future variable consideration is allocated to wholly unsatisfied performance obligations. Additionally, certain elements of our long-term customer contracts are unknown upon entering into the contract, including the amount that will be billed in accordance with annual price escalation clauses, our fuel recovery fee program and commodity prices. The amount to be billed is often tied to changes in an underlying base index such as a consumer price index or a fuel or commodity index, and revenue can be recognized once the index is established for the period. 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 treatment, 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 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. Deferred Revenue 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. Generally, we recognize revenue at the time we perform a service. In the event that we bill for services in advance of performance, we recognize deferred revenue for the amount billed and subsequently recognize revenue at the time the service is provided. 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, 2024 was recognized as revenue during the six months ended June 30, 2025 when the service was performed. Deferred Contract Costs We incur certain upfront payments to acquire customer contracts which are recognized as other assets in our consolidated balance sheet, and we amortize the asset over the respective contract life. 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. For the periods ended June 30, 2025 and December 31, 2024, we recognized $ 81 million and $ 82 million, respectively, of deferred contract costs and capitalized sales commissions. 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 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. The carrying value of our receivables, net of the allowance for doubtful accounts and customer credits, represents their estimated net realizable value. We establish an allowance for doubtful accounts based on various factors including the age of receivables outstanding, historical trends, economic conditions and other information. We also review outstanding balances on an account-specific basis based on the credit risk of the customer. We determined that all of our accounts receivable share similar risk characteristics. We monitor our credit exposure on an ongoing basis and assess whether assets in the pool continue to display similar risk characteristics. We perform ongoing credit evaluations of our customers, but generally do not require collateral to support customer receivables. 26 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) The following table reflects the activity in our allowance for doubtful accounts for the six months ended June 30, 2025 and 2024: 2025 2024 Balance at beginning of year $ 74 $ 83 Additions charged to expense 18 20 Accounts written-off ( 26 ) ( 20 ) Balance at end of period $ 66 $ 83 14. COMMITMENTS AND CONTINGENCIES Legal Proceedings We are subject to extensive and evolving laws and regulations and have implemented safeguards to respond to regulatory requirements. In the normal course of our business, we become involved in legal proceedings. Some may result in fines, penalties or judgments against us, or settlements, which may impact earnings and cash flows for a particular period. 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. As used herein, the term legal proceedings refers to litigation and similar claims against us and our subsidiaries, excluding: (1) ordinary course accidents, general commercial liability and workers' compensation claims, which are covered by insurance programs, subject to customary deductibles, and which, together with insured employee health care costs, are discussed in Note 5, Other Liabilities; and (2) environmental remediation liabilities, which are discussed in Note 6, Landfill and Environmental Costs. We accrue for legal proceedings when losses become probable and reasonably estimable. We have recorded an aggregate accrual of approximately $ 16 million relating to our outstanding legal proceedings as of June 30, 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. 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 $ 7 million higher than the amount recorded as of June 30, 2025. Multiemployer Pension Plans We participate in multiemployer pension plans that generally provide retirement benefits to participants of contributing employers. We do not administer these plans. Under current law regarding multiemployer pension plans, our withdrawal (which we consider from time to time) or the mass withdrawal from any under-funded multiemployer pension plan (each, a Withdrawal Event) could require us to make payments to the plan for our proportionate share of the plan’s unfunded vested liabilities. During the course of operating our business, we incur Withdrawal Events regarding certain of the multiemployer pension plans in which we participate. We accrue for such events when losses become probable and reasonably estimable. 27 Table of Contents REPUBLIC SERVICES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. 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, 2025 December 31, 2024 June 30, 2024 December 31, 2023 Cash and cash equivalents $ 122 $ 74 $ 491 $ 140 Restricted cash and marketable securities 224 208 178 164 Less: restricted marketable securities ( 83 ) ( 79 ) ( 77 ) ( 76 ) Cash, cash equivalents, restricted cash and restricted cash equivalents $ 263 $ 203 $ 592 $ 228 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: June 30, 2025 December 31, 2024 Capping, closure and post-closure obligations $ 63 $ 59 Insurance 161 149 Total restricted cash and marketable securities $ 224 $ 208 Off-Balance Sheet Arrangements We have no off-balance sheet debt or similar obligations, other than short-term operating leases and financial assurances, which are not classified as debt. We have no transactions or obligations with related parties that are not disclosed, consolidated into or reflected in our reported financial position or results of operations. We have not guaranteed any third-party debt. 28 Table of C ontents