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Item 2. Management’s Discussion and Analysis

2021-10-28 compared with 2021-08-05 · 272 added, 264 removed, 271 unchanged (66% of the section changed)

21 unchanged sentences

Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S., as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest.

Environmental, organizational and financial sustainability initiatives have been key components of our success since we were founded in 1997.

We remain committed to growing and expanding these efforts as our industry and technology continue to evolve.

To that end, we have made a $500 million commitment to the advancement of the long-term, aspirational targets outlined in our 2021 Sustainability Report.

This report can be found at www.wasteconnections.com/sustainability but does not constitute a part of, and is not incorporated by reference into, this Quarterly Report on Form 10-Q.

We generally seek to avoid highly competitive, large urban markets and instead target markets where we can attain high market share either through exclusive contracts, vertical integration or asset positioning.

1 unchanged sentence

We also target niche markets, like E&P waste treatment and disposal services.

As of June 30, 2021, we served residential, commercial, industrial and E&P customers in 43 states in the U.S.

As of September 30, 2021, we served residential, commercial, industrial and E&P customers in 44 states in the U.S.

and six provinces in Canada:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin and Wyoming, and the provinces of Alberta, British Columbia, Manitoba, Ontario, Québec and Saskatchewan.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin and Wyoming, and the provinces of Alberta, British Columbia, Manitoba, Ontario, Québec and Saskatchewan.

The solid waste industry is local and highly competitive in nature, requiring substantial labor and capital resources.

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If the prices of crude oil and natural gas substantially decline, it could lead to declines in the level of production activity and demand for our E&P waste services, which could result in the recognition of additional impairment charges on our intangible assets and property and equipment associated with our E&P operations.

See Note 5 to our Condensed Consolidated Financial Statements included in Part 1, Item 1 of this Quarterly Report on Form 10-Q for a discussion of the impairment charge recorded during the six months ended June 30, 2020.

See Note 4 to our Condensed Consolidated Financial Statements included in Part 1, Item 1 of this Quarterly Report on Form 10-Q for a discussion of the impairment charge recorded during the nine months ended September 30, 2020.

THE COVID-19 PANDEMIC’S IMPACT ON OUR RESULTS OF OPERATIONS

1 unchanged sentence

The related economic disruptions largely associated with closures or restrictions put into effect following the onset of the COVID-19 pandemic resulted in declines in solid waste commercial collection, transfer station and landfill volumes, and roll off activity.

Throughout the remaining fiscal year 2020, solid waste revenue and reported volumes largely reflected the pace and shape of the closures and subsequent reopening activity, with the timing and magnitude of

recovery varying by market.

Reported solid waste volumes in 2020 turned slightly negative in the first quarter, were most negative in the second quarter, and showed sequential improvement during the second half of the year, finishing the year at negative 3.1% in the fourth quarter.

1 unchanged sentence

In the second quarter of 2021, solid waste volumes increased sequentially by 9.6% to up 6.5% on a year over year basis, with positive volumes in all regions.

In the third quarter, volumes remained positive but declined sequentially to up 2.1% on a year over year basis, reflecting tougher comparisons to the prior year given the sequential improvement in the second half of 2020 as a result of reopening activity.

The COVID-19 pandemic also contributed to the decline in demand for and the value of crude oil, which impacted E&P drilling activity and resulted in lower E&P waste revenue, with the quarterly run rate decreasing from approximately $60 million in the first quarter of 2020 to approximately $25 million through the first quarter of 2021.

E&P waste revenue increased sequentially by $6.5 million to $31.2 million in the second quarter of 2021 on increased drilling activity in several active shale basins.

E&P waste revenue increased sequentially by $6.5 million to $31.2 million in the second quarter of 2021 on increased drilling activity in several active shale basins and increased sequentially again in the third quarter of 2021 to $35.0 million.

Since the onset of the COVID-19 pandemic, protecting the health, welfare and safety of our employees has been our top priority.

Recognizing the potential for financial hardship and other challenges, we looked to provide a safety net for our employees on issues of income and family health.

To that end, in 2020, we incurred over $35 million in incremental COVID-19-related costs, primarily supplemental pay for frontline employees.

Recognizing the potential for financial hardship and other challenges, we have looked to provide a safety net for our employees on issues of income and family health.

To that end, since the onset of the pandemic through the third quarter of 2021, we have incurred over $40 million in incremental COVID-19-related costs, primarily supplemental pay for frontline employees.

We continue to support our employees and their families, with certain costs continuing in 2021, albeit to a lesser extent than in the prior year, as employee COVID-19 cases and related impacts are similarly abating.

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For a description of the new accounting standards that affect us, see Note 3 to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020

The following table sets forth items in our Condensed Consolidated Statements of Net Income (Loss) in thousands of U.S.

RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

The following table sets forth items in our Condensed Consolidated Statements of Net Income in thousands of U.S.

dollars and as a percentage of revenues for the periods indicated.

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Cost of operations

2 unchanged sentences

Impairments and other operating items

Operating income (loss)

Operating income

Interest expense

1 unchanged sentence

Other income (expense), net

Income tax (provision) benefit

Net income (loss)

Loss on early extinguishment of debt

Income tax provision

Net loss (income) attributable to noncontrolling interests

Net income (loss) attributable to Waste Connections

Total revenues increased $228.1 million, or 17.5%, to $1.534 billion for the three months ended June 30, 2021, from $1.306 billion for the three months ended June 30, 2020.

Total revenues increased $271.7 million, or 10.2%, to $2.930 billion for the six months ended June 30, 2021, from $2.658 billion for the six months ended June 30, 2020.

Acquisitions closed during or subsequent to the three months ended June 30, 2020 increased revenues by $47.6 million for the three months ended June 30, 2021.

Acquisitions closed during or subsequent to the six months ended June 30, 2020 increased revenues by $91.4 million for the six months ended June 30, 2021.

Operations that were divested subsequent to June 30, 2020 decreased revenues by $3.5 million and $6.7 million, respectively, for the three and six months ended June 30, 2021.

During the three months ended June 30, 2021, the net increase in prices charged to our customers at our existing operations was $60.9 million, consisting of $58.3 million of core price increases and surcharges of $2.6 million.

During the six months ended June 30, 2021, the net increase in prices charged to our customers at our existing operations was $113.1 million, consisting of $114.2 million of core price increases, partially offset by a decrease in surcharges of $1.1 million.

During the three and six months ended June 30, 2021, volume increases in our existing business increased solid waste revenues by $80.2 million and $39.7 million, respectively, as many of our markets benefitted from increased business activity resulting from reductions in COVID-19-related restrictions.

E&P revenues at facilities owned during the three and six months ended June 30, 2021 and 2020 decreased $4.4 million and $39.1 million, respectively.

Decreases in the demand for crude oil commenced in March 2020 as a result of

economic disruptions from the COVID-19 pandemic, resulting in decreases in drilling and production activity levels and decreases in overall demand for our E&P waste services.

Net income attributable to Waste Connections

Total revenues increased $207.6 million, or 14.9%, to $1.597 billion for the three months ended September 30, 2021, from $1.390 billion for the three months ended September 30, 2020.

Total revenues increased $479.3 million, or 11.8%, to $4.527 billion for the nine months ended September 30, 2021, from $4.048 billion for the nine months ended September 30, 2020.

Acquisitions closed during or subsequent to the three months ended September 30, 2020 increased revenues by $54.1 million for the three months ended September 30, 2021.

Acquisitions closed during or subsequent to the nine months ended September 30, 2020 increased revenues by $145.4 million for the nine months ended September 30, 2021.

Operations that were divested subsequent to September 30, 2020 decreased revenues by $2.8 million and $9.5 million, respectively, for the three and nine months ended September 30, 2021.

During the three months ended September 30, 2021, the net increase in prices charged to our customers at our existing operations was $67.7 million, consisting of $62.0 million of core price increases and surcharges of $5.7 million.

During the nine months ended September 30, 2021, the net increase in prices charged to our customers at our existing operations was $180.9 million, consisting of $176.3 million of core price increases and surcharges of $4.6 million.

During the three and nine months ended September 30, 2021, volume increases in our existing business increased solid waste revenues by $28.9 million and $68.6 million, respectively, as many of our markets benefitted from increased business activity resulting from reductions in COVID-19-related restrictions.

E&P revenues at facilities owned during the three months ended September 30, 2021 increased $11.3 million due to a recovery in the demand for crude oil resulting in increased drilling and production and increased demand for our E&P waste services.

E&P revenues at facilities owned during the nine months ended September 30, 2021 decreased $27.7 million attributable to the first and second quarter results in 2021 being adversely impacted by decreases in the demand for crude oil as a result of economic disruptions from the COVID-19 pandemic resulting in a drop in the value of crude oil, decreases in drilling and production activity levels and decreases in overall demand for our E&P waste services, with our third quarter results in 2021 benefitting from recoveries in the demand for crude oil and our E&P disposal services.

An increase in the average Canadian dollar to U.S.

dollar currency exchange rate resulted in an increase in revenues of $20.5 million and $30.9 million, respectively, for the three and six months ended June 30, 2021.

dollar currency exchange rate resulted in an increase in revenues of $10.5 million and $41.3 million, respectively, for the three and nine months ended September 30, 2021.

The average Canadian dollar to U.S.

dollar exchange rates on our Canadian revenues were 0.8147 and 0.7226 in the three months ended June 30, 2021 and 2020, respectively.

dollar exchange rates on our Canadian revenues were 0.7936 and 0.7511 for the three months ended September 30, 2021 and 2020, respectively.

The average Canadian dollar to U.S.

dollar exchange rates on our Canadian revenues were 0.8030 and 0.7338 in the six months ended June 30, 2021 and 2020, respectively.

Revenues from sales of recyclable commodities at facilities owned during the three and six months ended June 30, 2021 and 2020 increased $18.0 million and $29.3 million, respectively, due primarily to higher prices for old corrugated cardboard, aluminum and other paper products, higher volumes collected from residential recycling customers and the partial recovery during the three months ended June 30, 2021 of collected commercial recycling volumes which declined in the prior year period due to economic disruptions resulting from the COVID-19 pandemic.

Other revenues increased $8.8 million during the three months ended June 30, 2021, due primarily to an $8.0 million increase resulting from higher prices for renewable energy credits associated with the generation of landfill gas in our Canada segment and a $2.1 million increase in other non-core revenue sources, partially offset by a $1.3 million decrease in intermodal revenues due primarily to customer losses that reduced intermodal cargo volumes.

Other revenues increased $13.1 million during the six months ended June 30, 2021 due primarily to a $14.1 million increase resulting from higher prices for renewable energy credits associated with the generation of landfill gas at our Canada segment and a $2.4 million increase in other non-core revenue sources, partially offset by a $3.4 million decrease in intermodal revenues due primarily to customer losses resulting in a reduction in intermodal cargo volumes.

dollar exchange rates on our Canadian revenues were 0.7996 and 0.7399 for the nine months ended September 30, 2021 and 2020, respectively.

Revenues from sales of recyclable commodities at facilities owned during the three and nine months ended September 30, 2021 and 2020 increased $28.3 million and $57.6 million, respectively, due primarily to higher prices for old corrugated cardboard, aluminum and other paper products, higher volumes collected from residential recycling customers and the partial recovery of collected commercial recycling volumes which declined in the prior year period due to economic disruptions resulting from the COVID-19 pandemic.

Other revenues increased $9.6 million during the three months ended September 30, 2021, due primarily to a $6.4 million increase resulting from higher prices for renewable energy credits associated with the generation of landfill gas in our Canada segment and a $3.2 million increase in other non-core revenue sources.

Other revenues increased $22.7 million during the nine months ended September 30, 2021, due primarily to a $20.5 million increase resulting from higher prices for renewable energy credits associated with the generation of landfill gas at our Canada segment and a $5.9 million increase in other non-core revenue sources, partially offset by a $3.7 million decrease in intermodal revenues due primarily to customer losses and shipping port logistical constraints resulting in a reduction in intermodal cargo volumes.

Cost of Operations .

Total cost of operations increased $115.5 million, or 14.7%, to $901.2 million for the three months ended June 30, 2021, from $785.7 million for the three months ended June 30, 2020.

The increase was primarily the result of an increase in operating costs at our existing operations of $81.3 million, assuming foreign currency parity, $24.6 million of additional operating costs from acquisitions closed subsequent to the three months ended June 30, 2020 and $11.6 million resulting from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease in operating costs of $2.0 million at operations divested subsequent to the three months ended June 30, 2020.

The increase in operating costs of $81.3 million, assuming foreign currency parity, at our existing operations for the three months ended June 30, 2021, consisted of an increase in labor expenses at our solid waste operations of $27.8 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in third-party disposal expenses of $15.1 million due primarily to increased solid waste collection volumes, an increase in truck, container, equipment and facility maintenance and repair expenses of $14.7 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes, an increase in third-party trucking and transportation expenses of $11.9 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in diesel fuel expense of $10.1 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, an increase in employee medical benefits expenses of $7.9 million due to an increase in medical visits, an increase in taxes on revenues of $6.5 million due primarily to increased revenues in our solid waste markets, an increase in subcontracted hauling services at our solid waste operations of $3.8 million due to outsourcing the servicing of certain non-strategic contracts and commercial collection customers to third party haulers, an increase in landfill maintenance, environmental compliance and daily cover expenses of $2.8 million due to increased compliance requirements under our landfill operating permits, an increase in 401(k) matching expenses of $1.7 million due to the prior year period reflecting less expenses due to a one month impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, an increase in insurance premium expenses of $1.3 million due primarily to increased insurance premium costs for auto and environmental compliance and $0.5 million of other net expense increases, partially offset by a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $17.3 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic, a decrease in labor at our E&P operations of $1.7 million due to headcount reductions resulting from disposal

volume decreases, a decrease in taxes on revenues of $1.6 million at Chiquita Canyon landfill due to a reduction in certain fees and exactions resulting from our successful challenge of these expenses subsequent to June 30, 2020, a decrease in subcontracted operating and remediation services at our E&P operations of $1.2 million due to disposal volume decreases and a decrease in intermodal rail expenses of $1.0 million due to customer losses resulting in a reduction in cargo volume.

Total cost of operations increased $126.0 million, or 7.9%, to $1.727 billion for the six months ended June 30, 2021, from $1.601 billion for the six months ended June 30, 2020.

The increase was primarily the result of an increase in operating costs at our existing operations of $63.9 million, assuming foreign currency parity, $48.7 million of additional operating costs from acquisitions closed subsequent to the six months ended June 30, 2020 and $17.4 million resulting from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease in operating costs of $4.0 million at operations divested subsequent to the six months ended June 30, 2020.

The increase in operating costs of $63.9 million, assuming foreign currency parity, at our existing operations for the six months ended June 30, 2021, consisted of an increase in labor expenses at our solid waste operations of $26.7 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in third-party disposal expenses of $12.2 million due primarily to increased solid waste collection volumes, an increase in third-party trucking and transportation expenses of $12.2 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in employee medical benefits expenses of $11.5 million due to an increase in medical visits, an increase in truck, container, equipment and facility maintenance and repair expenses of $10.7 million due primarily to parts and service rate increases, an increase in taxes on revenues of $8.9 million due primarily to increased revenues in our solid waste markets, an increase in diesel fuel expense of $7.4 million due to higher fuel prices, an increase in subcontracted hauling services at our solid waste operations of $6.3 million due to outsourcing the servicing of certain non-strategic contracts and commercial collection customers to third party haulers, an increase in landfill maintenance, environmental compliance and daily cover expenses of $3.3 million due to increased compliance requirements under our landfill operating permits, an increase in insurance premium expenses of $2.0 million due primarily to increased insurance premium costs for auto and environmental compliance, an increase in 401(k) matching expenses of $1.8 million due to the prior year period reflecting less expenses due to a one month impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match and $0.4 million of other net expense increases, partially offset by a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $15.1 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic, a decrease in expenses for auto and workers’ compensation claims of $8.1 million due primarily to higher claims severity in the prior year period and adjustments recorded in the current year period to decrease projected losses on outstanding claims originally recorded prior to 2021, a decrease in labor at our E&P operations of $4.7 million due to headcount reductions resulting from disposal volume decreases, a decrease in taxes on revenues of $3.7 million at Chiquita Canyon landfill due to a reduction in certain fees and exactions resulting from our successful challenge of these expenses subsequent to June 30, 2020, a decrease in subcontracted operating and remediation services at our E&P operations of $3.4 million due to disposal volume decreases, a decrease in intermodal rail expenses of $2.8 million due to customer losses resulting in a reduction in cargo volume and a decrease in expenses for processing recyclable commodities in our Western segment of $1.7 million due to increased recyclable commodity values resulting in price reductions charged by third-party recycling processors.

Cost of operations as a percentage of revenues decreased 1.4 percentage points to 58.8% for the three months ended June 30, 2021, from 60.2% for the three months ended June 30, 2020.

The decrease as a percentage of revenues consisted of a 1.4 percentage point decrease from a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel, a 0.5 percentage point decrease from leveraging existing personnel to support our solid waste revenue volume growth and a 0.2 percentage point decrease from all other net changes, partially offset by a 0.4 percentage point increase from higher employee medical expenses and a 0.3 percentage point increase from higher diesel fuel expenses.

Cost of operations as a percentage of revenues decreased 1.2 percentage points to 59.0% for the six months ended June 30, 2021, from 60.2% for the six months ended June 30, 2020.

claims, a 0.3 percentage point decrease from leveraging existing personnel to support our solid waste revenue volume growth and a 0.2 percentage point decrease from all other net changes, partially offset by a 0.3 percentage point increase from higher employee medical expenses.

SG&A expenses increased $25.7 million, or 19.5%, to $157.9 million for the three months ended June 30, 2021, from $132.2 million for the three months ended June 30, 2020.

The increase was comprised of an increase of $20.7 million in SG&A expenses at our existing operations, assuming foreign currency parity, $3.0 million of additional SG&A expenses from operating locations at acquisitions closed subsequent to the three months ended June 30, 2020 and $2.2 million resulting from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease in SG&A expenses of $0.2 million at operations divested subsequent to the three months ended June 30, 2020.

The increase in SG&A expenses at our existing operations of $20.7 million, assuming foreign currency parity, for the three months ended June 30, 2021, was comprised of an increase in accrued recurring cash incentive compensation expense to our management of $9.5 million, a collective increase in travel, meeting, training and community activity expenses of $6.7 million due to event cancelation credits recognized in the prior year period and increased travel and social gatherings in the current year period due to a reduction in restrictions associated with the COVID-19 pandemic, an increase in equity-based compensation expenses of $5.3 million associated with an adjustment during the current year period of our common shares held in our deferred compensation plan by certain key executives to fair value as a result of the shares being exchanged for other investment options, an increase in equity-based compensation expenses of $2.3 million resulting primarily from adjustments to the amount of performance-based restricted share units granted in 2019 and 2020 that are estimated to ultimately vest based on the achievement of required financial performance results, an increase in employee medical benefits expenses of $2.2 million due to an increase in medical visits, an increase in administrative payroll expenses of $1.7 million due primarily to annual pay increases, an increase in employee relocation expenses of $1.1 million and $0.8 million of other net expense increases, partially offset by a decrease in expenses for uncollectible accounts receivable of $5.4 million primarily due to the prior year period incurring increased expenses due to customers experiencing financial difficulties resulting from the economic impact of the COVID-19 pandemic, a decrease in deferred compensation expenses of $1.4 million as a result of higher increases during the prior year period in the market value of investments to which employee deferred compensation liability balances are tracked, a decrease of $1.1 million resulting from the prior year period including payments of supplemental bonuses to non-management employees to provide financial assistance associated with the impact of the COVID-19 pandemic and a decrease in direct acquisition expenses of $1.0 million due to a decrease in acquisition activity in the comparable periods.

SG&A expenses increased $31.2 million, or 11.6%, to $299.4 million for the six months ended June 30, 2021, from $268.2 million for the six months ended June 30, 2020.

The increase was comprised of an increase of $22.4 million in SG&A expenses at our existing operations, assuming foreign currency parity, $6.0 million of additional SG&A expenses from operating locations at acquisitions closed subsequent to the six months ended June 30, 2020 and $3.2 million resulting from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease in SG&A expenses of $0.4 million at operations divested subsequent to the six months ended June 30, 2020.

The increase in SG&A expenses at our existing operations of $22.4 million, assuming foreign currency parity, for the six months ended June 30, 2021, was comprised of an increase in accrued recurring cash incentive compensation expense to our management of $14.4 million, an increase in deferred compensation expenses of $4.2 million as a result of increases in the market value of investments to which employee deferred compensation liability balances are tracked, an increase in employee medical benefits expenses of $3.5 million due to an increase in medical visits, an increase in professional fees of $2.2 million due primarily to adjustments recorded during the prior year period to reduce estimated accrued liabilities associated with unbilled legal services and increased expenses associated with professional tax services, an increase in equity-based compensation expenses of $2.0 million associated with the net impact of current and prior period adjustments of our common shares held in our deferred compensation plan by certain key executives to fair value as a result of the shares being exchanged for other investment options, an increase in equity-based compensation expenses of $1.8 million resulting primarily from adjustments to the amount of performance-based restricted share units granted in 2019 and 2020 that are estimated to ultimately vest based on the achievement of required financial performance results, an increase in administrative payroll expenses of $1.1 million due primarily to annual pay increases and $2.5 million of other net expense

increases, partially offset by a decrease in expenses for uncollectible accounts receivable of $6.4 million primarily due to the prior year period incurring increased expenses due to customers experiencing financial difficulties resulting from the economic impact of the COVID-19 pandemic, a decrease in direct acquisition expenses of $1.6 million due to a decrease in acquisition activity in the comparable periods and a decrease of $1.3 million resulting from the prior year period including payments of supplemental bonuses to non-management employees to provide financial assistance associated with the impact of the COVID-19 pandemic.

SG&A as a percentage of revenues increased 0.2 percentage points to 10.3% for the three months ended June 30, 2021, from 10.1% for the three months ended June 30, 2020.

The increase as a percentage of revenues consisted of a 0.5 percentage point increase from travel, meeting, training and community activity expenses, a 0.4 percentage point increase from higher accrued recurring cash incentive compensation expense to our management and a 0.3 percentage point increase from increased equity-based compensation expenses associated with the designation of our common shares held in our deferred compensation plan, partially offset by a 0.4 percentage point decrease from lower expenses for uncollectible accounts receivable, a 0.4 percentage point decrease from leveraging existing administrative headcount to support solid waste revenue increases and a 0.2 percentage point decrease from all other net changes.

SG&A as a percentage of revenues increased 0.1 percentage points to 10.2% for the six months ended June 30, 2021, from 10.1% for the six months ended June 30, 2020.

The increase as a percentage of revenues consisted of a 0.4 percentage point increase from higher accrued recurring cash incentive compensation expense to our management, a 0.1 percentage point increase from higher benefits expenses and a 0.1 percentage point increase from increased equity-based compensation expenses associated with the designation of our common shares held in our deferred compensation plan, partially offset by a 0.3 percentage point decrease from leveraging existing administrative headcount to support solid waste revenue increases and a 0.2 percentage point decrease from lower expenses for uncollectible accounts receivable.

Total cost of operations increased $117.3 million, or 14.1%, to $946.1 million for the three months ended September 30, 2021, from $828.8 million for the three months ended September 30, 2020.

The increase was primarily the result of an increase in operating costs at our existing operations of $85.0 million, assuming foreign currency parity, $28.8 million of additional operating costs from acquisitions closed subsequent to the three months ended September 30, 2020 and $5.5 million resulting from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease in operating costs of $2.0 million at operations divested subsequent to the three months ended September 30, 2020.

The increase in operating costs of $85.0 million, assuming foreign currency parity, at our existing operations for the three months ended September 30, 2021, consisted of an increase in labor expenses of $28.1 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in truck, container, equipment and facility maintenance and repair expenses of $12.5 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes, an increase in diesel fuel expense of $9.8 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, an increase in third-party trucking and transportation expenses of $9.4 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in third-party disposal expenses of $8.6 million due primarily to increased solid waste collection volumes, an increase in taxes on revenues of $7.7 million due primarily to increased revenues in our solid waste markets and a credit recorded to expenses during the prior year period at Chiquita Canyon landfill due to a reversal of amounts accrued for certain fees and exactions resulting from our successful challenge of these expenses, an increase in 401(k) matching expenses of $4.6 million due to the prior year period reflecting less expenses due to the impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, an increase in subcontracted hauling services of $3.5 million due to outsourcing the servicing of certain non-strategic contracts and commercial collection customers to third party haulers, an increase in employee medical benefits expenses of $2.5 million due to an increase in medical visits, an increase in leachate expense of $2.4 million due primarily to the impact of hurricanes and tropical storms causing higher precipitation in certain markets

where our landfills are located, an increase in expenses for auto and workers’ compensation claims of $1.9 million due primarily to an increase in incidents and adjustments recorded in the prior year period to decrease projected losses on outstanding claims originally recorded prior to 2020, an increase in insurance premium expenses of $1.3 million due primarily to increased insurance premium costs for auto and environmental compliance and $3.6 million of other net expense increases, partially offset by a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $7.0 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic and a decrease in expenses for processing recyclable commodities of $3.9 million due to increased recyclable commodity values resulting in price reductions charged by third-party recycling processors.

Total cost of operations increased $243.2 million, or 10.0%, to $2.673 billion for the nine months ended September 30, 2021, from $2.430 billion for the nine months ended September 30, 2020.

The increase was primarily the result of an increase in operating costs at our existing operations of $149.0 million, assuming foreign currency parity, $77.5 million of additional operating costs from acquisitions closed subsequent to the nine months ended September 30, 2020 and $22.8 million resulting from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease in operating costs of $6.1 million at operations divested subsequent to the nine months ended September 30, 2020.

The increase in operating costs of $149.0 million, assuming foreign currency parity, at our existing operations for the nine months ended September 30, 2021, consisted of an increase in labor expenses at our solid waste operations of $54.4 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in truck, container, equipment and facility maintenance and repair expenses of $23.2 million due primarily to parts and service rate increases, an increase in third-party trucking and transportation expenses of $21.6 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in third-party disposal expenses of $20.8 million due primarily to increased solid waste collection volumes, an increase in diesel fuel expense of $17.2 million due to higher fuel prices, an increase in employee medical benefits expenses of $14.0 million due to an increase in medical visits, an increase in taxes on revenues of $12.9 million due primarily to increased revenues in our solid waste markets, an increase in subcontracted hauling services at our solid waste operations of $10.0 million due to outsourcing the servicing of certain non-strategic contracts and commercial collection customers to third party haulers, an increase in 401(k) matching expenses of $6.4 million due to the prior year period reflecting less expenses due to the impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, an increase in landfill maintenance, environmental compliance and daily cover expenses of $3.8 million due to increased compliance requirements under our landfill operating permits, an increase in insurance premium expenses of $3.3 million due primarily to increased insurance premium costs for auto and environmental compliance, an increase in leachate expense of $1.7 million due primarily to the impact of hurricanes and tropical storms causing higher precipitation in certain markets where our landfills are located, an increase in heavy equipment rental expenses of $1.4 million to provide support for solid waste volume increases at our disposal operations, an increase in property tax expenses of $1.3 million due primarily to reassessed property values at certain locations and an increase in capital assets that are subject to property tax assessments and $2.7 million of other net expense increases, partially offset by a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $22.1 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic, a decrease in expenses for auto and workers’ compensation claims of $6.2 million due primarily to higher claims severity in the prior year period and adjustments recorded in the current year period to decrease projected losses on outstanding claims originally recorded prior to 2021, a decrease in expenses for processing recyclable commodities of $6.1 million due to increased recyclable commodity values resulting in price reductions charged by third-party recycling processors, a decrease in labor at our E&P operations of $4.3 million due to headcount reductions resulting from E&P disposal volume decreases, a decrease in subcontracted operating and remediation services at our E&P operations of $3.9 million due to E&P disposal volume decreases and a decrease in intermodal rail expenses of $3.1 million due to a reduction in cargo volume.

Cost of operations as a percentage of revenues decreased 0.4 percentage points to 59.2% for the three months ended September 30, 2021, from 59.6% for the three months ended September 30, 2020.

The decrease as a percentage of revenues consisted of a 0.6 percentage point decrease from a reduction in supplemental bonuses and other cash incentive compensation to non-management personnel, a 0.2 percentage point decrease from a reduction in expenses for processing

recyclable commodities and a 0.2 percentage point decrease from all other net changes, partially offset by a 0.3 percentage point increase from higher 401(k) matching expenses and a 0.3 percentage point increase from higher diesel fuel expenses.

Cost of operations as a percentage of revenues decreased 0.9 percentage points to 59.1% for the nine months ended September 30, 2021, from 60.0% for the nine months ended September 30, 2020.

The decrease as a percentage of revenues consisted of a 0.6 percentage point decrease from a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel, a 0.2 percentage point decrease from a reduction in expenses for auto and workers’ compensation claims, a 0.2 percentage point decrease from leveraging existing personnel to support our solid waste revenue volume growth and a 0.1 percentage point decrease from all other net changes, partially offset by a 0.2 percentage point increase from higher employee medical expenses.

SG&A expenses increased $19.5 million, or 14.4%, to $155.5 million for the three months ended September 30, 2021, from $136.0 million for the three months ended September 30, 2020.

The increase was comprised of an increase of $15.9 million in SG&A expenses at our existing operations, assuming foreign currency parity, $2.9 million of additional SG&A expenses from operating locations at acquisitions closed subsequent to the three months ended September 30, 2020 and $0.9 million resulting from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease in SG&A expenses of $0.2 million at operations divested subsequent to the three months ended September 30, 2020.

The increase in SG&A expenses at our existing operations of $15.9 million, assuming foreign currency parity, for the three months ended September 30, 2021, was comprised of a collective increase in travel, meeting, training and community activity expenses of $4.3 million attributable to increased travel and social gatherings in the current year period due to a reduction in restrictions associated with the COVID-19 pandemic, an increase in direct acquisition expenses of $3.3 million due to an increase in acquisition activity in the comparable periods, an increase in administrative payroll expenses of $2.9 million due primarily to annual pay and headcount increases, an increase in accrued recurring cash incentive compensation expense to our management of $1.8 million, an increase in 401(k) matching expenses of $1.8 million due to the prior year period reflecting less expenses due to the impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, an increase in expenses for uncollectible accounts receivable of $1.4 million primarily due to non-recurring expense reductions recorded in the prior year period to adjust reserves for uncollectible accounts receivable based upon actual payment defaults from customers experiencing financial difficulties resulting from the economic impact of the COVID-19 pandemic being less than originally estimated, an increase in employee relocation expenses of $0.8 million and $1.9 million of other net expense increases, partially offset by a decrease in equity-based compensation expenses of $1.2 million resulting primarily from expense increases recorded during the prior year period to the amount of performance-based restricted share units granted in 2018 that were estimated to ultimately vest based on the achievement of required financial performance results and a decrease in deferred compensation expenses of $1.1 million as a result of higher increases during the prior year period in the market value of investments to which employee deferred compensation liability balances are tracked.

SG&A expenses increased $50.7 million, or 12.5%, to $454.9 million for the nine months ended September 30, 2021, from $404.2 million for the nine months ended September 30, 2020.

The increase was comprised of an increase of $38.3 million in SG&A expenses at our existing operations, assuming foreign currency parity, $8.9 million of additional SG&A expenses from operating locations at acquisitions closed subsequent to the nine months ended September 30, 2020 and $4.1 million resulting from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease in SG&A expenses of $0.6 million at operations divested subsequent to the nine months ended September 30, 2020.

The increase in SG&A expenses at our existing operations of $38.3 million, assuming foreign currency parity, for the nine months ended September 30, 2021, was comprised of an increase in accrued recurring cash incentive compensation expense to our management of $16.2 million, a collective increase in travel, meeting, training and community activity expenses of $5.0 million due to increased travel and social gatherings in the current year period due to a reduction in restrictions associated with the COVID-19 pandemic, an increase in employee medical benefits expenses of $4.1 million due to an increase in medical visits, an increase in administrative payroll expenses of $4.0 million due primarily to annual pay and headcount increases, an increase in deferred compensation expenses of $3.1 million as a result of increases in the market value of investments to which employee deferred compensation liability balances are tracked, an increase in 401(k)

matching expenses of $2.4 million due to the prior year period reflecting less expenses due to the impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, an increase in professional fees of $2.3 million due primarily to adjustments recorded during the prior year period to reduce estimated accrued liabilities associated with unbilled legal services and increased expenses associated with professional tax services, an increase in advertising expenses of $1.7 million due primarily to cost reduction efforts associated with the COVID-19 pandemic reducing the prior year period expenses, an increase in direct acquisition expenses of $1.7 million due to an increase in acquisition activity in the comparable periods, an increase in employee relocation expenses of $1.6 million and an increase in equity-based compensation expenses of $1.2 million associated with the net impact of current and prior period adjustments of our common shares held in our deferred compensation plan by certain key executives to fair value as a result of the shares being exchanged for other investment options, partially offset by a decrease in expenses for uncollectible accounts receivable of $4.9 million primarily due to the prior year period incurring increased expenses due to customers experiencing financial difficulties resulting from the economic impact of the COVID-19 pandemic and $0.1 million of other net expense decreases.

SG&A as a percentage of revenues was unchanged at 9.8% for the three months ended September 30, 2020 and 2021 and 10.0% for the nine months ended September 30, 2020 and 2021.

Depreciation .

Depreciation expense increased $18.0 million, or 11.9%, to $169.2 million for the three months ended June 30, 2021, from $151.2 million for the three months ended June 30, 2020.

The increase was comprised of an increase in depletion expense of $7.9 million resulting from increased landfill municipal solid waste and special waste volumes, an increase in depreciation expense of $4.8 million from the impact of additions to our fleet and equipment purchased to support our existing operations, depreciation and depletion expense of $3.8 million from acquisitions closed subsequent to the three months ended June 30, 2020 and $2.4 million resulting from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease in depreciation and depletion expense of $0.9 million from operations divested subsequent to the three months ended June 30, 2020.

Depreciation expense increased $24.5 million, or 8.1%, to $326.6 million for the six months ended June 30, 2021, from $302.1 million for the six months ended June 30, 2020.

The increase was comprised of an increase in depreciation expense of $9.8 million from the impact of additions to our fleet and equipment purchased to support our existing operations, depreciation and depletion expense of $7.7 million from acquisitions closed subsequent to the six months ended June 30, 2020, an increase in depletion expense of $5.1 million resulting from increased landfill municipal solid waste and special waste volumes and $3.6 million resulting from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease in depreciation and depletion expense of $1.7 million from operations divested subsequent to the six months ended June 30, 2020.

Depreciation expense as a percentage of revenues decreased 0.6 percentage points to 11.0% for the three months ended June 30, 2021, from 11.6% for the three months ended June 30, 2020.

Depreciation expense as a percentage of revenues decreased 0.2 percentage points to 11.2% for the six months ended June 30, 2021, from 11.4% for the six months ended June 30, 2020.

Depreciation expense increased $14.4 million, or 9.1%, to $172.0 million for the three months ended September 30, 2021, from $157.6 million for the three months ended September 30, 2020.

The increase was comprised of an increase in depreciation expense of $5.8 million from the impact of additions to our fleet and equipment purchased to support our existing operations, an increase in depletion expense of $4.8 million resulting from increased landfill municipal solid waste and special waste volumes, depreciation expense of $3.3 million from acquisitions closed subsequent to the three months ended September 30, 2020 and $1.2 million resulting from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease in depreciation and depletion expense of $0.7 million from operations divested subsequent to the three months ended September 30, 2020.

Depreciation expense increased $39.0 million, or 8.5%, to $498.6 million for the nine months ended September 30, 2021, from $459.6 million for the nine months ended September 30, 2020.

The increase was comprised of an increase in depreciation expense of $15.7 million from the impact of additions to our fleet and equipment purchased to support our existing operations, depreciation and depletion expense of $11.1 million from acquisitions closed subsequent to the nine months ended September 30, 2020, an increase in depletion expense of $9.8 million resulting from increased landfill municipal solid waste and special waste volumes and $4.8 million resulting from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease in depreciation and depletion expense of $2.4 million from operations divested subsequent to the nine months ended September 30, 2020.

Depreciation expense as a percentage of revenues decreased 0.5 percentage points to 10.8% for the three months ended September 30, 2021, from 11.3% for the three months ended September 30, 2020.

Depreciation expense as a percentage of revenues decreased 0.4 percentage points to 11.0% for the nine months ended September 30, 2021, from 11.4% for the nine months ended September 30, 2020.

The decreases as a percentage of revenues were primarily attributable to leveraging volume increases in our solid waste revenues.

Amortization of Intangibles .

Amortization of intangibles expense increased $0.9 million, or 2.9%, to $32.7 million for the three months ended June 30, 2021, from $31.8 million for the three months ended June 30, 2020.

The increase was the result of $2.5 million from intangible assets acquired in acquisitions closed subsequent to the three months ended June 30, 2020 and $0.7 million from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease of $2.2 million from certain intangible assets becoming fully amortized

subsequent to June 30, 2020 and a decrease of $0.1 million from operations divested subsequent to the three months ended June 30, 2020.

Amortization of intangibles expense increased $1.5 million, or 2.4%, to $64.9 million for the six months ended June 30, 2021, from $63.4 million for the six months ended June 30, 2020.

The increase was the result of $5.3 million from intangible assets acquired in acquisitions closed subsequent to the six months ended June 30, 2020 and $1.0 million from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease of $4.6 million from certain intangible assets becoming fully amortized subsequent to June 30, 2020 and a decrease of $0.2 million from operations divested subsequent to the six months ended June 30, 2020.

Amortization expense as a percentage of revenues decreased 0.3 percentage points to 2.1% for the three months ended June 30, 2021, from 2.4% for the three months ended June 30, 2020.

Amortization expense as a percentage of revenues decreased 0.2 percentage points to 2.2% for the six months ended June 30, 2021, from 2.4% for the six months ended June 30, 2020.

Amortization of intangibles expense increased $2.6 million, or 8.2%, to $35.3 million for the three months ended September 30, 2021, from $32.7 million for the three months ended September 30, 2020.

The increase was the result of $3.2 million from intangible assets acquired in acquisitions closed subsequent to the three months ended September 30, 2020 and $0.3 million from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease of $0.8 million from certain intangible assets becoming fully amortized subsequent to September 30, 2020 and a decrease of $0.1 million from operations divested subsequent to the three months ended September 30, 2020.

Amortization of intangibles expense increased $4.1 million, or 4.3%, to $100.2 million for the nine months ended September 30, 2021, from $96.1 million for the nine months ended September 30, 2020.

The increase was the result of $8.5 million from intangible assets acquired in acquisitions closed subsequent to the nine months ended September 30, 2020 and $1.3 million from an increase in the average foreign currency exchange rate in effect during the comparable reporting periods, partially offset by a decrease of $5.4 million from certain intangible assets becoming fully amortized

subsequent to September 30, 2020 and a decrease of $0.3 million from operations divested subsequent to the nine months ended September 30, 2020.

Amortization expense as a percentage of revenues decreased 0.2 percentage points to 2.2% for the three and nine months ended September 30, 2021, from 2.4% for the three and nine months ended September 30, 2020.

The decreases as a percentage of revenues were primarily attributable to leveraging volume increases in our solid waste revenues.

Impairments and Other Operating Items .

Impairments and other operating items decreased $431.2 million, to net losses totaling $6.1 million for the three months ended June 30, 2021, from net losses totaling $437.3 million for the three months ended June 30, 2020, including an impairment charge at our E&P operations of $417.4 million.

The net losses of $6.1 million recorded during the three months ended June 30, 2021 consisted of a $4.6 million loss resulting from property and equipment damaged in a facility fire, $0.6 million of charges to terminate or write off the carrying cost of certain contracts that were not, or are not expected to be, renewed prior to their original estimated termination date and $0.9 million of other net charges.

During the three months ended June 30, 2020, we concluded that a triggering event occurred which required us to perform an impairment test of the property and equipment and intangible assets of our E&P operations as of June 30, 2020.

Impairments and other operating items decreased $0.7 million, to net losses totaling $3.1 million for the three months ended September 30, 2021, from net losses totaling $3.8 million for the three months ended September 30, 2020.

The net losses of $3.1 million recorded during the three months ended September 30, 2021 consisted of $2.0 million of charges to terminate or write off the carrying cost of certain contracts that were not, or are not expected to be, renewed prior to their original estimated termination date and $1.1 million of losses on property and equipment that were disposed of through sales or as a result of being damaged in operations.

The net losses of $3.8 million recorded during the three months ended September 30, 2020 consisted of $1.9 million of losses on property and equipment that were disposed of through sales or as a result of being damaged in operations, $1.8 million of charges to terminate or write off the carrying cost of certain contracts that were not, or are not expected to be, renewed prior to their original estimated termination date and $0.1 million of other net charges to expense.

Impairments and other operating items decreased $432.8 million, to net losses totaling $9.8 million for the nine months ended September 30, 2021, from net losses totaling $442.6 million for the nine months ended September 30, 2020.

The net losses of $9.8 million recorded during the nine months ended September 30, 2021 consisted of a $4.6 million loss resulting from property and equipment damaged in a facility fire, $3.2 million of charges to terminate or write off the carrying cost of certain contracts that were not, or are not expected to be, renewed prior to their original estimated termination date, $1.5 million of losses on property and equipment that were disposed of through sales or as a result of being damaged in operations and $0.5 million of other net charges.

During the nine months ended September 30, 2020, we concluded that a triggering event occurred which required us to perform an impairment test of the property and equipment and intangible assets of our E&P operations as of June 30, 2020.

As a result of the impairment test, we concluded that the carrying value of four E&P landfills exceeded their estimated fair value, resulting in an impairment charge of $417.4 million to property and equipment.

The remaining net losses of $19.9 million recorded during the three months ended June 30, 2020 consisted of $16.8 million of expenses associated with adjusting the carrying value of liabilities for contingent consideration associated with acquisitions closed in prior periods, $1.7 million of losses on property and equipment that were disposed of through sales or as a result of being damaged in operations and $1.6 million of charges to terminate or write off the carrying cost of certain contracts that were not, or are not expected to be, renewed prior to their original estimated termination date, partially offset by $0.2 million of other net credits to expense.

Impairments and other operating items decreased $432.1 million, to net losses totaling $6.7 million for the six months ended June 30, 2021, from net losses totaling $438.8 million for the six months ended June 30, 2020.

The net losses of $6.7 million recorded during the six months ended June 30, 2021 consisted of a $4.6 million loss resulting from property and equipment damaged in a facility fire, $1.1 million of charges to terminate or write off the carrying cost of certain contracts that were not, or are not expected to be, renewed prior to their original estimated termination date and $1.0 million of other net charges.

The net losses of $438.8 million recorded during the six months ended June 30, 2020 consisted of the aforementioned charges of $417.4 million at our E&P operations and $16.8 million to adjust the carrying value of liabilities for contingent consideration, as well as $2.5 million of charges to terminate or write off the carrying cost of certain contracts that were not, or are not expected to be, renewed prior to their original estimated termination date, $1.5 million of losses on property and equipment that were disposed of through sales or as a result of being damaged in operations and $0.6 million of other net charges.

Operating Income (Loss) .

Operating income (loss) increased $499.2 million, to operating income of $266.8 million for the three months ended June 30, 2021, from an operating loss of $232.4 million for the three months ended June 30,

Operating income (loss) increased $520.6 million, to operating income of $505.2 million for the six months ended June 30, 2021, from an operating loss of $15.4 million for the six months ended June 30, 2020.

Our operating results for the three and six months ended June 30, 2020 were adversely impacted by the aforementioned impairment charge at our E&P operations of $417.4 million.

The remaining increase in our operating income for the three and six months ended June 30, 2021 was due primarily to price increases for our solid waste services, increases in solid waste collection and disposal volumes, operating income contributions from increased sales of recyclable commodities and renewable energy credits associated with the generation of landfill gas, operating income generated from acquisitions closed subsequent to the three and six months ended June 30, 2020 and an increase in the average Canadian dollar to U.S.

The remaining net losses of $25.2 million recorded during the nine months ended September 30, 2020 consisted of $16.8 million to adjust the carrying value of contingent consideration liabilities, $4.3 million of charges to terminate or write off the carrying cost of certain contracts that were not, or are not expected to be, renewed prior to their original estimated termination date, $3.4 million of losses on property and equipment that were disposed of through sales or as a result of being damaged in operations and $0.7 million of other net charges.

Operating Income .

Operating income increased $54.4 million, or 23.6%, to $285.1 million for the three months ended September 30, 2021, from $230.7 million for the three months ended September 30, 2020.

Operating income increased $575.0 million, or 267.1%, to $790.3 million for the nine months ended September 30, 2021, from $215.3 million for the nine months ended September 30, 2020.

Our operating results for the nine months ended September 30, 2020 were adversely impacted by the aforementioned impairment charge at our E&P operations of $417.4 million.

The remaining increase in our operating income for the three and nine months ended September 30, 2021 was due primarily to price increases for our solid waste services, increases in solid waste collection and disposal volumes, operating income contributions from increased sales of recyclable commodities and renewable energy credits associated with the generation of landfill gas, operating income generated from acquisitions closed subsequent to the three and nine months ended September 30, 2020 and an increase in the average Canadian dollar to U.S.

dollar currency exchange rate.

Operating income as a percentage of revenues increased 35.2 percentage points to 17.4% for the three months ended June 30, 2021, from a loss of 17.8% for the three months ended June 30, 2020.

The increase as a percentage of revenues was comprised of a 33.1 percentage point decrease in impairments and other operating items, a 1.4 percentage point decrease in cost of operations, a 0.6 percentage point decrease in depreciation expense and a 0.3 percentage point decrease in amortization expense, partially offset by at 0.2 percentage point increase in SG&A expense.

Operating income as a percentage of revenues increased 17.8 percentage points to 17.2% for the six months ended June 30, 2021, from a loss of 0.6% for the six months ended June 30, 2020.

The increase as a percentage of revenues was comprised of a 16.3 percentage point decrease in impairments and other operating items, a 1.2 percentage point decrease in cost of operations, a 0.2 percentage point decrease in depreciation expense and a 0.2 percentage point decrease in amortization expense, partially offset by at 0.1 percentage point increase in SG&A expense.

Operating income as a percentage of revenues increased 1.2 percentage points to 17.8% for the three months ended September 30, 2021, from 16.6% for the three months ended September 30, 2020.

The increase as a percentage of revenues was comprised of a 0.5 percentage point decrease in depreciation expense, a 0.4 percentage point decrease in cost of operations, a 0.2 percentage point decrease in amortization expense and a 0.1 percentage point decrease in impairments and other operating items.

Operating income as a percentage of revenues increased 12.2 percentage points to 17.5% for the nine months ended September 30, 2021, from 5.3% for the nine months ended September 30, 2020.

The increase as a percentage of revenues was comprised of a 10.7 percentage point decrease in impairments and other operating items, a 0.9 percentage point decrease in cost of operations, a 0.4 percentage point decrease in depreciation expense and a 0.2 percentage point decrease in amortization expense.

Interest Expense .

Interest expense increased $0.4 million, or 1.0%, to $41.3 million for the three months ended June 30, 2021, from $40.9 million for the three months ended June 30, 2020.

The increase was primarily attributable to an increase of $1.4 million from higher net interest rates on borrowings outstanding under our Credit Agreement due primarily to $600 million in interest rate swap agreements commencing in October 2020 at higher interest rates than $575 million in interest rate swap agreements which expired between September 2020 and October 2020 and $0.5 million of other net increases, partially offset by a decrease of $1.5 million from the repayment of $250 million of senior unsecured notes in 2021.

Interest expense increased $4.9 million, or 6.1%, to $83.8 million for the six months ended June 30, 2021, from $78.9 million for the six months ended June 30, 2020.

The increase was primarily attributable to an increase of $3.4 million from higher net interest rates on borrowings outstanding under our Credit Agreement due primarily to $600 million in interest rate swap agreements commencing in October 2020 at higher interest rates than $575 million in interest rate swap agreements which expired between September 2020 and October 2020, an increase of $3.1 million from the March 2020 issuance of our 2050 Senior Notes (as defined below), an increase of $0.9 million from the January 2020 issuance of our 2030 Senior Notes (as defined below) and $1.1 million of other net increases, partially offset by a decrease of $2.1 million due to a reduction in the average borrowings outstanding under our Credit Agreement and a decrease of $1.5 million from the repayment of $250 million of senior unsecured notes in 2021.

Interest expense decreased $0.2 million, or 0.5%, to $40.4 million for the three months ended September 30, 2021, from $40.6 million for the three months ended September 30, 2020.

The decrease was primarily attributable to a decrease of $3.4 million from the repayment of $1.75 billion of senior unsecured notes in 2021 and $0.7 million of other net decreases, partially offset by an increase of $1.5 million from higher net interest rates on borrowings outstanding under our Credit Agreement due primarily to $600 million in interest rate swap agreements commencing in October 2020 at higher interest rates than $575 million in interest rate swap agreements which expired between September 2020 and October 2020, an increase of $1.2 million due to an increase in the average borrowings outstanding under our Credit Agreement and an increase of $1.2 million from the September 2021 issuance of our 2032 Senior Notes (as defined below) and our 2052 Senior Notes (as defined below).

Interest expense increased $4.6 million, or 3.9%, to $124.2 million for the nine months ended September 30, 2021, from $119.6 million for the nine months ended September 30, 2020.

The increase was primarily attributable to an increase of $5.0 million from higher net interest rates on borrowings outstanding under our Credit Agreement due primarily to $600 million in interest rate swap agreements commencing in October 2020 at higher interest rates than $575 million in interest rate swap agreements which expired between September 2020 and October 2020, an increase of $3.1 million from the March 2020 issuance of our 2050 Senior Notes (as defined below), an increase of $1.2 million from the September 2021 issuance of our 2032 Senior Notes (as defined below) and our 2052 Senior Notes (as defined below), an increase of $0.9 million from the January 2020 issuance of our 2030 Senior Notes (as defined below) and $0.2 million of other net increases, partially offset by a decrease of $4.8 million from the repayment of $1.75 billion of senior unsecured notes in 2021 and a decrease of $1.0 million due to a reduction in the average borrowings outstanding under our Credit Agreement.

Interest Income .

Interest income decreased $0.6 million to $0.7 million for the three months ended June 30, 2021, from $1.3 million for the three months ended June 30, 2020.

Interest income decreased $1.7 million to $1.8 million for the six months ended June 30, 2021, from $3.5 million for the six months ended June 30, 2020.

The decreases were primarily attributable to lower reinvestment rates in the current period, partially offset by higher average cash balances.

Interest income decreased $0.4 million to $0.5 million for the three months ended September 30, 2021, from $0.9 million for the three months ended September 30, 2020.

Interest income decreased $2.1 million to $2.3 million for the nine months ended September 30, 2021, from $4.4 million for the nine months ended September 30, 2020.

The decreases were primarily attributable to lower reinvestment rates in the current period.

Other Income (Expense), Net .

Other income (expense), net decreased $7.0 million, to an expense total of $1.2 million for the three months ended June 30, 2021, from an income total of $5.8 million for the three months ended June 30, 2020.

Other expense of $1.2 million recorded during the three months ended June 30, 2021 consisted of $1.8 million of adjustments to increase certain accrued liabilities acquired in prior period acquisitions and a $0.9 million increase in other net expenses, partially offset by $1.5 million of income earned on investments purchased to fund our employee deferred compensation obligations.

Other income of $5.8 million recorded during the three months ended June 30, 2020 consisted of $3.3 million of earnings on investments purchased to fund our employee deferred compensation obligations, a $1.0 million adjustment to decrease certain non-acquisition accrued liabilities recorded in prior periods and a $1.5 million increase in other income sources.

Other income (expense), net increased $6.0 million, to an income total of $2.3 million for the six months ended June 30, 2021, from an expense total of $3.7 million for the six months ended June 30, 2020.

Other income of $2.3 million recorded during the six months ended June 30, 2021 consisted of $2.7 million of income earned on investments purchased to fund our employee deferred compensation obligations and a $1.1 million increase in other net income sources, partially offset by $1.5 million of adjustments to increase certain accrued liabilities acquired in prior period acquisitions.

Other expense of $3.7 million recorded during the six months ended June 30, 2020 consisted of a $3.0 million adjustment to increase certain accrued liabilities acquired in the 2016 Progressive Waste acquisition, $1.5 million of losses on investments purchased to fund our employee deferred compensation obligations and a $0.2 million increase in other expenses, partially offset by a $1.0 million adjustment to decrease certain non-acquisition accrued liabilities recorded in prior periods.

Income Tax (Provision) Benefit .

Income taxes increased $86.6 million, to an expense total of $47.9 million for the three months ended June 30, 2021, from a benefit total of $38.7 million for the three months ended June 30, 2020.

Our effective tax expense rate for the three months ended June 30, 2021 was 21.3%.

Our effective tax benefit rate for the three months ended June 30, 2020 was 14.6%.

Income taxes increased $98.2 million, to an expense total of $88.2 million for the six months ended June 30, 2021, from a benefit total of $10.0 million for the six months ended June 30, 2020.

Our effective tax expense rate for the six months ended June 30, 2021 was 20.7%.

Our effective tax benefit rate for the six months ended June 30, 2020 was 10.6%.

The income tax provision for the six months ended June 30, 2021 included benefits of $2.0 million from share-based payment awards being recognized in the income statement when settled, as well as a portion of our internal financing being taxed at effective rates substantially lower than the U.S.

Other income (expense), net increased $2.4 million, to an income total of $3.1 million for the three months ended September 30, 2021, from an income total of $0.7 million for the three months ended September 30, 2020.

Other income of $3.1 million recorded during the three months ended September 30, 2021 consisted of $2.0 million of adjustments to certain current assets acquired in prior period acquisitions and a $1.1 million increase in other net income.

Other income of $0.7 million recorded during the three months ended September 30, 2020 consisted of $1.5 million of earnings on investments purchased to fund our employee deferred compensation obligations, partially offset by a $0.8 million decrease from other net expenses.

Other income (expense), net increased $8.5 million, to an income total of $5.5 million for the nine months ended September 30, 2021, from an expense total of $3.0 million for the nine months ended September 30, 2020.

Other income of $5.5 million recorded during the nine months ended September 30, 2021 consisted of $2.0 million of income earned on investments purchased to fund our employee deferred compensation obligations, an increase in

foreign currency transaction gains of $0.9 million attributable to the impact of an increase in the Canadian dollar to U.S.

dollar exchange rate during the period, $0.6 million of net adjustments to certain current assets and liabilities acquired in prior period acquisitions and a $2.0 million increase in other net income sources.

Other expense of $3.0 million recorded during the nine months ended September 30, 2020 consisted of a $3.0 million adjustment to increase certain accrued liabilities acquired in the 2016 Progressive Waste acquisition and an increase in foreign currency transaction losses of $1.5 million attributable to the impact of a decrease in the Canadian dollar to U.S.

dollar exchange rate during the period, partially offset by a $1.0 million adjustment to decrease certain non-acquisition accrued liabilities recorded in prior periods and a $0.5 million increase in other expenses.

Loss on Early Extinguishment of Debt .

Loss on early extinguishment of debt was $115.3 million for the three and nine months ended September 30, 2021 and consists of the payment of a make-whole premium and the write-off of remaining unamortized loan fees associated with the early repayment of the outstanding senior notes under our master note purchase agreements.

Income Tax Provision .

Income taxes decreased $15.3 million, to $18.4 million for the three months ended September 30, 2021, from $33.7 million for the three months ended September 30, 2020.

Our effective tax rate for the three months ended September 30, 2021 was 13.8%.

Our effective tax rate for the three months ended September 30, 2020 was 17.6%.

Income taxes increased $82.9 million, to $106.6 million for the nine months ended September 30, 2021, from $23.7 million for the nine months ended September 30, 2020.

Our effective tax rate for the nine months ended September 30, 2021 was 19.1%.

Our effective tax rate for the nine months ended September 30, 2020 was 24.4%.

The income tax provision for the nine months ended September 30, 2021 included benefits of $2.0 million from share-based payment awards being recognized in the income statement when settled, as well as a portion of our internal financing being taxed at effective rates substantially lower than the U.S.

federal statutory rate.

The income tax benefit for the three and six months ended June 30, 2020 included a $27.4 million expense associated with certain 2019 inter-entity payments no longer being deductible for tax purposes due to the finalization of tax regulations on April 7, 2020 under Internal Revenue Code section 267A and a $4.1 million expense related to an increase in our deferred income tax liabilities resulting from the impairment of certain assets within our E&P operations, which impacted the geographical apportionment of our state income taxes.

Additionally, the income tax benefit for the three and six months ended June 30, 2020 included a benefit of $0.2 million and $5.3 million, respectively, from share-based payment awards being recognized in the income statement when settled, as well as a portion of our internal financing being taxed at effective rates substantially lower than the U.S.

The income tax provision for the nine months ended September 30, 2020 included a $27.4 million expense associated with certain 2019 related-party payments no longer being deductible for tax purposes due to the finalization of tax regulations on April 7, 2020 under Internal Revenue Code section 267A and a $4.1 million expense related to an increase in our deferred income tax liabilities resulting from the impairment of certain assets within our E&P operations, which impacted the geographical apportionment of our state income taxes.

Additionally, the income tax benefit for the nine months ended September 30, 2020 included a benefit of $5.3 million from share-based payment awards being recognized in the income statement when settled, as well as a portion of our internal financing being taxed at effective rates substantially lower than the U.S.

federal statutory rate.

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The following table disaggregates our revenue by service line for the periods indicated (dollars in thousands of U.S.

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Industrial and construction roll off

5 unchanged sentences

Our management uses segment EBITDA in the evaluation of segment operating performance as it is a profit measure that is generally within the control of the operating segments.

Prior to July 2020, we managed our operations through five geographic solid waste operating segments and our E&P segment, which were also our reportable segments.

As of July 2020, our Chief Operating Decision Maker determined that the E&P and Southern operating segments met all of the aggregation criteria and eliminated our E&P segment by combining all operations of the E&P segment into the Southern segment.

After giving effect to this combination, our reportable segments consist of our five geographic operating segments and no longer include a separate E&P segment.

The Company manages its operations through five geographic operating segments, which are also its reportable segments.

Each operating segment is responsible for managing several vertically integrated operations, which are comprised of districts.

The segment information presented herein reflects the realignment of these districts.

Segment results for the 2020 periods reflected in this report have been reclassified to reflect the realignment of our reportable segments for comparison with the same period in 2021.

At June 30, 2021, under the current orientation, our Southern segment services customers located in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, New Mexico, North Dakota, southern Oklahoma, western Tennessee, Texas, Wyoming and along the Gulf of Mexico;

our Eastern segment services customers located in Delaware, northern Illinois, Kentucky, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, eastern Tennessee, Vermont, Virginia and Wisconsin;

At September 30, 2021, our Southern segment services customers located in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, New Mexico, North Dakota, southern Oklahoma, western Tennessee, Texas, Wyoming and along the Gulf of Mexico;

our Eastern segment services customers located in Delaware, northern Illinois, Kentucky, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, eastern Tennessee, Vermont, Virginia and Wisconsin;

our Western segment services customers located in Alaska, California, Idaho, Montana, Nevada, Oregon, Washington and western Wyoming;

3 unchanged sentences

dollars and as a percentage of total revenues for the periods indicated.

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Segment EBITDA for our reportable segments is shown in the following table in thousands of U.S.

dollars and as a percentage of segment revenues for the periods indicated.

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Corporate (a)

2 unchanged sentences

A reconciliation of segment EBITDA to Income before income tax provision is included in Note 11 to our Condensed Consolidated Financial Statements included in Part 1, Item 1 of this report.

Significant changes in revenue and segment EBITDA for our reportable segments for the three and six month periods ended June 30, 2021, compared to the three and six month periods ended June 30, 2020, are discussed below.

Significant changes in revenue and segment EBITDA for our reportable segments for the three and nine month periods ended September 30, 2021, compared to the three and nine month periods ended September 30, 2020, are discussed below.

Segment Revenue

Revenue in our Eastern segment increased $50.7 million, or 15.9%, to $369.6 million for the three months ended June 30, 2021, from $318.9 million for the three months ended June 30, 2020.

The components of the increase consisted of solid waste volume increases of $16.6 million due primarily to higher collection and disposal volumes, net price increases of $14.0 million, net revenue growth from acquisitions closed subsequent to the three months ended June 30, 2020 of $10.4 million, the impact of a partial recovery of collected commercial recycling volumes, which declined in the prior year period due to economic disruptions resulting from the COVID-19 pandemic, and higher prices for old corrugated cardboard, other paper products, plastics and aluminum contributing to a $9.2 million increase in sales from recyclable commodities and other revenue increases of $0.5 million.

Revenue in our Eastern segment increased $55.0 million, or 8.4%, to $706.1 million for the six months ended June 30, 2021, from $651.1 million for the six months ended June 30, 2020.

The components of the increase consisted of net price increases of $27.2 million, net revenue growth from acquisitions closed subsequent to the six months ended June 30, 2020 of $20.0 million, the impact of a partial recovery of collected commercial recycling volumes, which declined in the prior year period due to economic disruptions resulting from the COVID-19 pandemic, and higher prices for old corrugated cardboard, other paper products, plastics and aluminum contributing to a $14.8 million increase in sales from recyclable commodities and other revenue increases of $0.6 million, partially offset by solid waste volume decreases of $7.6 million

attributable primarily to COVID-19-related economic disruptions in our Northeastern markets, which commenced in March 2020 and continued into 2021, driving declines in commercial collection and roll off collection volumes.

Revenue in our Southern segment increased $29.8 million, or 9.0%, to $363.3 million for the three months ended June 30, 2021, from $333.5 million for the three months ended June 30, 2020.

The components of the increase consisted of net price increases of $18.0 million, solid waste volume increases of $14.8 million due primarily to higher commercial collection, roll off collection, transfer station and landfill volumes, higher prices for old corrugated cardboard, plastics and aluminum products contributing to a $2.8 million increase in sales from recyclable commodities and other revenue increases of $1.6 million, partially offset by a decline in revenue at our E&P operations of $5.2 million as decreases in the demand for crude oil commenced in March 2020 as a result of economic disruptions from the COVID-19 pandemic, resulting in decreases in drilling and production activity levels and decreases in overall demand for our E&P waste services and net revenue reductions from divestitures closed subsequent to June 30, 2020 of $2.2 million.

Revenue in our Southern segment decreased $1.2 million, or 0.2%, to $701.5 million for the six months ended June 30, 2021, from $702.7 million for the six months ended June 30, 2020.

The components of the decrease consisted of a decline in revenue at our E&P operations of $39.5 million, partially offset by an increase in revenue at our solid waste operations of $38.3 million.

The $39.5 million decrease in revenue at our E&P operations was attributable to decreases in the demand for crude oil as a result of economic disruptions from the COVID-19 pandemic resulting in a drop in the value of crude oil, decreases in drilling and production activity levels and decreases in overall demand for our E&P waste services.

The components of the $38.3 million increase in revenue at our solid waste operations consisted of net price increases of $31.5 million, solid waste volume increases of $4.4 million due primarily to higher landfill special waste volumes, higher prices for old corrugated cardboard, plastics and aluminum contributing to a $4.4 million increase in sales from recyclable commodities and other revenue increases of $1.9 million, partially offset by net revenue reductions from divestitures closed subsequent to June 30, 2020 of $3.9 million.

Revenue in our Western segment increased $38.3 million, or 13.9%, to $313.8 million for the three months ended June 30, 2021, from $275.5 million for the three months ended June 30, 2020.

The components of the increase consisted of solid waste volume increases of $22.6 million attributable to increased collection and disposal volumes, net revenue growth from acquisitions closed subsequent to the three months ended June 30, 2020 of $6.9 million, net price increases of $6.9 million and recyclable commodity revenue increases of $3.0 million due primarily to higher prices for old corrugated cardboard, metals and aluminum and higher volumes collected from residential recycling customers and other revenue increases of $0.2 million, partially offset by intermodal revenue decreases of $1.3 million due primarily to customer losses resulting in a reduction in intermodal cargo volumes.

Revenue in our Western segment increased $63.3 million, or 11.6%, to $610.8 million for the six months ended June 30, 2021, from $547.5 million for the six months ended June 30, 2020.

The components of the increase consisted of solid waste volume increases of $32.5 million attributable to increased collection and disposal volumes, net revenue growth from acquisitions closed subsequent to the six months ended June 30, 2020 of $15.4 million, net price increases of $13.9 million and recyclable commodity revenue increases of $4.7 million due primarily to higher prices for old corrugated cardboard, metals and aluminum and higher volumes collected from residential recycling customers and other revenue increases of $0.2 million, partially offset by intermodal revenue decreases of $3.4 million due primarily to customer losses resulting in a reduction in intermodal cargo volumes.

Revenue in our Central segment increased $50.2 million, or 23.2%, to $266.8 million for the three months ended June 30, 2021, from $216.6 million for the three months ended June 30, 2020.

The components of the increase consisted of revenue growth from acquisitions closed subsequent to the three months ended June 30, 2020 of $30.1 million, net price increases of $10.0 million, solid waste volume increases of $8.7 million due primarily to higher commercial collection, roll off collection, transfer station and landfill volumes, higher prices for old corrugated cardboard and aluminum products contributing to a $1.2 million increase in sales from recyclable commodities and other revenue increases of $1.6 million, partially offset by net revenue reductions from divestitures closed subsequent to June 30, 2020 of $1.4 million.

Revenue in our Central segment increased $77.0 million, or 18.1%, to $502.2 million for the six months ended June 30, 2021, from $425.2 million for the six months ended June 30, 2020.

The components of the increase consisted of revenue growth from acquisitions closed subsequent to the six months ended June 30, 2020 of $55.3 million, net price

increases of $19.4 million, solid waste volume increases of $2.2 million due primarily to higher landfill special waste volumes, higher prices for old corrugated cardboard and aluminum products contributing to a $1.5 million increase in sales from recyclable commodities and other revenue increases of $1.4 million, partially offset by net revenue reductions from divestitures closed subsequent to June 30, 2020 of $2.8 million.

Revenue in our Canada segment increased $59.0 million, or 36.6%, to $220.3 million for the three months ended June 30, 2021, from $161.3 million for the three months ended June 30, 2020.

The components of the increase consisted of $20.5 million resulting from a higher average foreign currency exchange rate in effect during the comparable reporting periods, solid waste volume increases of $17.5 million due primarily to higher collection and disposal volumes, net price increases of $11.9 million, $8.0 million resulting from higher prices for renewable energy credits associated with the generation of landfill gas and recyclable commodity revenue increases of $1.9 million due primarily to higher prices for old corrugated cardboard and higher volumes collected from residential recycling customers, partially offset by other revenue decreases of $0.8 million.

Revenue in our Canada segment increased $77.6 million, or 23.4%, to $409.3 million for the six months ended June 30, 2021, from $331.7 million for the six months ended June 30, 2020.

The components of the increase consisted of $30.9 million resulting from a higher average foreign currency exchange rate in effect during the comparable reporting periods, net price increases of $21.1 million, $14.1 million resulting from higher prices for renewable energy credits associated with the generation of landfill gas, solid waste volume increases of $8.2 million due primarily to higher roll off collection and landfill special waste volumes and recyclable commodity revenue increases of $3.9 million due primarily to higher prices for old corrugated cardboard and higher volumes collected from residential recycling customers, partially offset by other revenue decreases of $0.6 million.

Revenue in our Eastern segment increased $51.8 million, or 15.1%, to $396.2 million for the three months ended September 30, 2021, from $344.4 million for the three months ended September 30, 2020.

The components of the increase consisted of revenue growth from acquisitions closed subsequent to the three months ended September 30, 2020 of $22.3 million, net price increases of $16.5 million and the impact of a partial recovery of collected commercial recycling volumes, which declined in the prior year period due to economic disruptions resulting from the COVID-19 pandemic, and higher prices for old corrugated cardboard, other paper products, plastics and aluminum contributing to a $13.4 million increase in sales from recyclable commodities, partially offset by other revenue decreases of $0.4 million.

Revenue in our Eastern segment increased $106.9 million, or 10.7%, to $1.102 billion for the nine months ended September 30, 2021, from $995.4 million for the nine months ended September 30, 2020.

The components of the increase consisted of net price increases of $43.8 million, revenue growth from acquisitions closed subsequent to the nine months ended September 30, 2020 of $42.3 million, the impact of a partial recovery of collected commercial recycling volumes, which declined in the prior year period due to economic disruptions resulting from the COVID-19 pandemic, and higher prices for old corrugated cardboard, other paper products, plastics and aluminum contributing to a $28.2 million increase in sales from recyclable commodities and other revenue increases of $0.7 million, partially offset by solid waste volume decreases of $8.1 million attributable primarily to COVID-19-related economic disruptions in our Northeastern markets,

which commenced in March 2020 and continued into 2021, driving declines in commercial collection and roll off collection volumes.

Revenue in our Southern segment increased $40.4 million, or 12.2%, to $371.0 million for the three months ended September 30, 2021, from $330.6 million for the three months ended September 30, 2020.

The components of the increase consisted of net price increases of $22.3 million, an increase in revenue at our E&P operations of $9.7 million due to a recovery in the demand for crude oil resulting in increased drilling and production and increased demand for our E&P waste services and solid waste volume increases of $6.4 million due primarily to higher commercial collection, roll off collection, transfer station and landfill volumes, higher prices for old corrugated cardboard, plastics and aluminum products contributing to a $1.4 million increase in sales from recyclable commodities, revenue growth from acquisitions closed subsequent to the three months ended September 30, 2020 of $1.0 million and other revenue increases of $0.9 million, partially offset by net revenue reductions from divestitures closed subsequent to September 30, 2020 of $1.3 million.

Revenue in our Southern segment increased $39.2 million, or 3.8%, to $1.072 billion for the nine months ended September 30, 2021, from $1.033 billion for the nine months ended September 30, 2020.

The components of the increase consisted of net price increases of $53.7 million, solid waste volume increases of $10.8 million due primarily to higher commercial collection, roll off collection, transfer station and landfill volumes, higher prices for old corrugated cardboard, plastics and aluminum products contributing to a $5.8 million increase in sales from recyclable commodities, $1.7 million resulting from higher prices from the sale of landfill gas, revenue growth from acquisitions closed subsequent to the nine months ended September 30, 2020 of $1.4 million and other revenue increases of $0.8 million, partially offset by a decline in revenue at our E&P operations of $29.7 million and net revenue reductions from divestitures closed subsequent to September 30, 2020 of $5.3 million.

The decrease in revenue at our E&P operations was attributable to the first and second quarter results in 2021 being adversely impacted by decreases in the demand for crude oil as a result of economic disruptions from the COVID-19 pandemic resulting in a drop in the value of crude oil, decreases in drilling and production activity levels and decreases in overall demand for our E&P waste services, with our third quarter results in 2021 benefitting from recoveries in the demand for crude oil and our E&P disposal services.

Revenue in our Western segment increased $30.8 million, or 10.2%, to $332.0 million for the three months ended September 30, 2021, from $301.2 million for the three months ended September 30, 2020.

The components of the increase consisted of solid waste volume increases of $14.8 million attributable to increased collection and disposal volumes, net price increases of $7.3 million, revenue growth from acquisitions closed subsequent to the three months ended September 30, 2020 of $4.6 million and recyclable commodity revenue increases of $4.4 million due primarily to higher prices for old corrugated cardboard, metals and aluminum and higher volumes collected from residential recycling customers, partially offset by intermodal revenue decreases of $0.3 million.

Revenue in our Western segment increased $94.1 million, or 11.1%, to $942.8 million for the nine months ended September 30, 2021, from $848.7 million for the nine months ended September 30, 2020.

The components of the increase consisted of solid waste volume increases of $47.3 million attributable to increased collection and disposal volumes, net price increases of $21.2 million, revenue growth from acquisitions closed subsequent to the nine months ended September 30, 2020 of $20.0 million, recyclable commodity revenue increases of $9.1 million due primarily to higher prices for old corrugated cardboard, metals and aluminum and higher volumes collected from residential recycling customers and other revenue increases of $0.2 million, partially offset by intermodal revenue decreases of $3.7 million due primarily to customer losses and shipping port logistical constraints resulting in a reduction in intermodal cargo volumes.

Revenue in our Central segment increased $45.1 million, or 19.7%, to $273.7 million for the three months ended September 30, 2021, from $228.6 million for the three months ended September 30, 2020.

The components of the increase consisted of revenue growth from acquisitions closed subsequent to the three months ended September 30, 2020 of $26.1 million, net price increases of $11.0 million, higher prices for old corrugated cardboard and aluminum products contributing to a $3.2 million increase in sales from recyclable commodities, solid waste volume increases of $3.7 million due primarily to higher commercial and roll off collection volumes, an increase in E&P revenue of $1.6 million and other revenue increases of $1.0 million, partially offset by net revenue reductions from divestitures closed subsequent to September 30, 2020 of $1.5 million.

Revenue in our Central segment increased $122.2 million, or 18.7%, to $775.9 million for the nine months ended September 30, 2021, from $653.7 million for the nine months ended September 30, 2020.

The components of the increase consisted of revenue growth from acquisitions closed subsequent to the nine months ended September 30, 2020 of $81.5 million, net price increases of $30.4 million, solid waste volume increases of $5.9 million due primarily to commercial and roll off collection volumes and higher landfill special waste volumes, higher prices for old corrugated cardboard and aluminum products contributing to a $4.7 million increase in sales from recyclable commodities, an increase in E&P revenue of $1.9 million and other revenue increases of $2.0 million, partially offset by net revenue reductions from divestitures closed subsequent to September 30, 2020 of $4.2 million.

Revenue in our Canada segment increased $39.5 million, or 21.3%, to $224.3 million for the three months ended September 30, 2021, from $184.8 million for the three months ended September 30, 2020.

The components of the increase consisted of net price increases of $10.7 million, $10.5 million resulting from a higher average foreign currency exchange rate in effect during the comparable reporting periods, $6.4 million resulting from higher prices for renewable energy credits associated with the generation of landfill gas, recyclable commodity revenue increases of $5.9 million due primarily to higher prices for old corrugated cardboard and higher volumes collected from residential recycling customers, solid waste volume increases of $4.5 million due primarily to higher collection and disposal volumes and other revenue increases of $1.5 million.

Revenue in our Canada segment increased $117.1 million, or 22.7%, to $633.6 million for the nine months ended September 30, 2021, from $516.5 million for the nine months ended September 30, 2020.

The components of the increase consisted of $41.3 million resulting from a higher average foreign currency exchange rate in effect during the comparable reporting periods, net price increases of $31.8 million, $20.5 million resulting from higher prices for renewable energy credits associated with the generation of landfill gas, solid waste volume increases of $12.7 million due primarily to higher roll off collection and landfill special waste volumes, recyclable commodity revenue increases of $9.9 million due primarily to higher prices for old corrugated cardboard and higher volumes collected from residential recycling customers and other revenue increases of $0.9 million.

Segment EBITDA

Segment EBITDA in our Western segment increased $14.0 million, or 16.4%, to $99.4 million for the three months ended June 30, 2021, from $85.4 million for the three months ended June 30, 2020.

The increase was due primarily to an increase in revenues of $38.3 million, a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $2.1 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic and a decrease in taxes on revenues of $1.6 million at Chiquita Canyon landfill due to a reduction in certain fees and exactions resulting from our successful challenge of these expenses subsequent to June 30, 2020, partially offset by an increase in labor expenses of $7.0 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, $4.7 million of additional operating costs from acquisitions closed subsequent to the three months ended June 30, 2020, an increase in taxes on revenues of $2.8 million due primarily to increased revenues, an increase in diesel fuel expense of $2.4 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, an increase in third-party disposal expenses of $2.2 million due primarily to increased solid waste collection volumes, an increase in third-party trucking and transportation expenses of $2.2 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in truck, container, equipment and facility maintenance and repair expenses of $2.1 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes, an increase in employee medical benefits expenses of $2.0 million due to an increase in medical visits, an increase in corporate overhead expense allocations of $1.4 million due to an increase in the overhead allocation rate resulting from an increase in corporate expenses qualifying for allocation and $1.2 million of other net expense increases.

Segment EBITDA in our Western segment increased $26.7 million, or 16.1%, to $193.2 million for the six months ended June 30, 2021, from $166.5 million for the six months ended June 30, 2020.

The increase was due primarily to an increase in revenues of $63.3 million, a decrease in taxes on revenues of $3.7 million at Chiquita Canyon landfill due to a reduction in certain fees and exactions resulting from our successful challenge of these expenses subsequent to June 30, 2020, a decrease in intermodal rail expenses of $2.8 million due to customer losses resulting in a reduction in cargo volume, a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $2.4 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic and a decrease in expenses for processing recyclable commodities in our Western segment

of $1.7 million due to increased recyclable commodity values resulting in price reductions charged by third-party recycling processors, partially offset by $11.0 million of additional operating costs from acquisitions closed subsequent to the six months ended June 30, 2020, an increase in labor expenses of $9.0 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in corporate overhead expense allocations of $5.2 million due to an increase in the overhead allocation rate resulting from an increase in corporate expenses qualifying for allocation, an increase in taxes on revenues of $5.0 million due primarily to increased revenues, an increase in third-party disposal expenses of $3.9 million due primarily to increased solid waste collection volumes, an increase in third-party trucking and transportation expenses of $3.4 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in employee medical benefits expenses of $3.0 million due to an increase in medical visits, an increase in diesel fuel expense of $2.3 million due to higher fuel prices, an increase in truck, container, equipment and facility maintenance and repair expenses of $2.2 million due primarily to parts and service rate increases, an increase in landfill maintenance, environmental compliance and daily cover expenses of $1.2 million due to increased compliance requirements under our landfill operating permits and $1.0 million of other net expense increases.

Segment EBITDA in our Eastern segment increased $16.7 million, or 20.2%, to $99.4 million for the three months ended June 30, 2021, from $82.7 million for the three months ended June 30, 2020.

The increase was due primarily to an increase in revenues of $50.7 million, a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $2.8 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic and a decrease in expenses for uncollectible accounts receivable of $2.2 million primarily due to the prior year period incurring increased expenses due to customers experiencing financial difficulties resulting from the economic impact of the COVID-19 pandemic, partially offset by an increase in labor expenses of $6.5 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, $6.4 million of additional operating costs from acquisitions closed subsequent to the three months ended June 30, 2020, an increase in third-party trucking and transportation expenses of $4.7 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in third-party disposal expenses of $4.3 million due primarily to increased solid waste collection volumes, an increase in truck, container, equipment and facility maintenance and repair expenses of $3.9 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes, an increase in employee medical benefits expenses of $2.6 million due to an increase in medical visits, an increase in diesel fuel expense of $2.2 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, an increase in landfill maintenance expenses of $1.3 million due to increased disposal volumes and increased compliance requirements under our landfill operating permits, an increase in taxes on revenues of $1.2 million due primarily to increased revenues, an increase in corporate overhead expense allocations of $1.0 million due to an increase in the overhead allocation rate resulting from an increase in corporate expenses qualifying for allocation and other net expense increases of $4.9 million.

Segment EBITDA in our Eastern segment increased $21.2 million, or 12.6%, to $188.5 million for the six months ended June 30, 2021, from $167.3 million for the six months ended June 30, 2020.

The increase was due primarily to an increase in revenues of $55.0 million, a decrease in expenses for uncollectible accounts receivable of $3.6 million primarily due to the prior year period incurring increased expenses due to customers experiencing financial difficulties resulting from the economic impact of the COVID-19 pandemic and a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $3.2 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic, partially offset by $11.4 million of additional operating costs from acquisitions closed subsequent to the six months ended June 30, 2020, an increase in labor expenses at our solid waste operations of $5.0 million due primarily to employee pay increases, an increase in corporate overhead expense allocations of $4.9 million due to an increase in the overhead allocation rate resulting from an increase in corporate expenses qualifying for allocation, an increase in third-party disposal expenses of $4.2 million due primarily to increased rates paid for third party disposal and increased volumes in our Northeastern markets as they began to recover in 2021 from economic disruptions attributable to the COVID-19 pandemic, an increase in employee medical benefits expenses of $3.7 million due to an increase in medical visits, an increase in third-party trucking and transportation expenses of $3.0 million due primarily to opening a new transfer station facility in the latter half of 2020 and increased transfer station volumes in our Northeastern markets as they began to recover in 2021 from

economic disruptions attributable to the COVID-19 pandemic, an increase in truck, container, equipment and facility maintenance and repair expenses of $2.5 million due primarily to parts and service rate increases, an increase in landfill maintenance expenses of $1.8 million due to increased disposal volumes and increased compliance requirements under our landfill operating permits, an increase in diesel fuel expense of $1.6 million due to higher fuel prices, an increase in taxes on revenues of $1.5 million due primarily to increased revenues and other net expense increases of $1.0 million.

Segment EBITDA in our Southern segment increased $9.8 million, or 11.0%, to $98.9 million for the three months ended June 30, 2021, from $89.1 million for the three months ended June 30, 2020.

The increase was due to an increase in revenues of $32.0 million from organic growth and acquisitions, a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $3.2 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic, a decrease in labor at our E&P operations of $1.7 million due to headcount reductions resulting from disposal volume decreases, a decrease in subcontracted operating and remediation services at our E&P operations of $1.2 million due to disposal volume decreases and a decrease in expenses for uncollectible accounts receivable of $1.0 million at our E&P operations primarily due to the prior year period incurring increased expenses due to customers experiencing financial difficulties resulting from the economic impact of the COVID-19 pandemic, partially offset by an increase in labor expenses of $5.5 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in third-party disposal expenses of $4.5 million due primarily to increased solid waste collection volumes, an increase in truck, container, equipment and facility maintenance and repair expenses of $3.6 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes, an increase in subcontracted hauling services at our solid waste operations of $2.9 million due to outsourcing the servicing of certain non-strategic contracts and commercial collection customers to third party haulers, an increase in employee medical benefits expenses of $2.8 million due to an increase in medical visits, an increase in third-party trucking and transportation expenses of $2.5 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in diesel fuel expense of $2.0 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, a decrease to EBITDA of $1.2 million from the impact of operations disposed of during, or subsequent to, the three months ended June 30, 2020, an increase in taxes on revenues of $0.9 million due primarily to increased revenues in our solid waste markets, an increase in corporate overhead expense allocations of $0.9 million due to an increase in the overhead allocation rate resulting from an increase in corporate expenses qualifying for allocation and other net expense increases of $2.5 million.

Segment EBITDA in our Southern segment decreased $3.0 million, or 1.6%, to $192.4 million for the six months ended June 30, 2021, from $195.4 million for the six months ended June 30, 2020.

The decrease was due to a decline in E&P revenues of $39.5 million, an increase in subcontracted hauling services at our solid waste operations of $5.6 million due to outsourcing the servicing of certain non-strategic contracts and commercial collection customers to third party haulers, an increase in employee medical benefits expenses of $4.0 million due to an increase in medical visits, an increase in labor expenses at our solid waste operations of $3.2 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in truck, container, equipment and facility maintenance and repair expenses at our solid waste operations of $3.0 million due primarily to parts and service rate increases, an increase in corporate overhead expense allocations of $2.9 million due to an increase in the overhead allocation rate resulting from an increase in corporate expenses qualifying for allocation, an increase in third-party disposal expenses at our solid waste operations of $2.8 million due primarily to increased solid waste collection volumes, an increase in third-party trucking and transportation expenses at our solid waste operations of $2.8 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, a decrease to EBITDA of $2.0 million from the impact of operations disposed of subsequent to the six months ended June 30, 2020 and an increase in diesel fuel expense at our solid waste operations of $1.1 million due to higher fuel prices, partially offset by an increase in solid waste revenues of $42.2 million from organic growth and acquisitions, a decrease in expenses for auto and workers’ compensation claims of $6.5 million due primarily to higher claims severity in the prior year period and adjustments recorded in the current year period to decrease projected losses on outstanding claims originally recorded prior to 2021, a decrease in labor at our E&P operations of $4.7 million due to headcount reductions resulting from disposal volume decreases, a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $3.7 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic, a decrease in subcontracted operating and remediation services at our E&P

operations of $3.4 million due to disposal volume decreases, a decrease in equipment and facility maintenance and repair expenses at our E&P operations of $1.7 million due to decreased equipment operating hours resulting from disposal volume decreases, a decrease in expenses for uncollectible accounts receivable of $1.3 million at our E&P operations primarily due to the prior year period incurring increased expenses due to customers experiencing financial difficulties resulting from the economic impact of the COVID-19 pandemic and other net expense decreases of $0.4 million.

Segment EBITDA in our Central segment increased $15.2 million, or 19.0%, to $94.9 million for the three months ended June 30, 2021, from $79.7 million for the three months ended June 30, 2020.

The increase was due primarily to an increase in revenues of $51.6 million from organic growth and acquisitions and a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $2.2 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic, partially offset by $16.5 million of additional operating costs from certain acquisitions closed subsequent to the three months ended June 30, 2020, an increase in labor expenses of $6.2 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in truck, container, equipment and facility maintenance and repair expenses of $3.5 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes, an increase in third-party disposal expenses of $2.2 million due primarily to increased solid waste collection volumes, an increase in employee medical benefits expenses of $2.0 million due to an increase in medical visits, an increase in corporate overhead expense allocations of $1.6 million due to an increase in the overhead allocation rate resulting from an increase in corporate expenses qualifying for allocation, an increase in third-party trucking and transportation expenses of $1.5 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in taxes on revenues of $1.2 million due primarily to increased revenues, an increase in diesel fuel expense of $1.0 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, a decrease to EBITDA of $0.2 million from the impact of operations disposed of subsequent to the three months ended June 30, 2020 and other net expense increases of $2.7 million.

Segment EBITDA in our Central segment increased $21.0 million, or 13.8%, to $173.9 million for the six months ended June 30, 2021, from $152.9 million for the six months ended June 30, 2020.

The increase was due primarily to an increase in revenues of $79.8 million from organic growth and acquisitions and a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $2.4 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic, partially offset by $32.2 million of additional operating costs from certain acquisitions closed subsequent to the six months ended June 30, 2020, an increase in labor expenses at our solid waste operations of $7.6 million due primarily to employee pay increases, an increase in corporate overhead expense allocations of $4.8 million due to an increase in the overhead allocation rate resulting from an increase in corporate expenses qualifying for allocation, an increase in truck, container, equipment and facility maintenance and repair expenses of $4.0 million due primarily to parts and service rate increases, an increase in employee medical benefits expenses of $3.0 million due to an increase in medical visits, an increase in third-party trucking and transportation expenses of $2.5 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in taxes on revenues of $1.7 million due primarily to increased revenues, an increase in expenses for uncollectible accounts receivable of $1.4 million due to the prior year period including the collection of amounts deemed uncollectible in 2019, an increase in third-party disposal expenses of $1.1 million due primarily to increased solid waste collection volumes, a decrease to EBITDA of $0.2 million from the impact of operations disposed of subsequent to the six months ended June 30, 2020 and other net expense increases of $2.7 million.

Segment EBITDA in our Canada segment increased $34.9 million, or 65.1%, to $88.6 million for the three months ended June 30, 2021, from $53.7 million for the three months ended June 30, 2020.

Segment EBITDA in our Western segment increased $7.2 million, or 7.1%, to $108.3 million for the three months ended September 30, 2021, from $101.1 million for the three months ended September 30, 2020.

The increase was due primarily to an increase in revenues of $30.8 million and a decrease in expenses for processing recyclable commodities of $2.5 million due to increased recyclable commodity values resulting in price reductions charged by third-party recycling processors, partially offset by an increase in labor expenses of $6.4 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in taxes on revenues of $4.1 million due primarily to increased revenues in our solid waste markets and credit recorded to expenses during the prior year period at Chiquita Canyon landfill due to a reversal of amounts accrued for certain fees and exactions resulting from our successful challenge of these expenses, an increase in third-party trucking and transportation expenses of $3.3 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, $2.8 million of additional operating costs from acquisitions closed subsequent to the three months ended September 30, 2020, an increase in diesel fuel expense of $2.7 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, an increase in truck, container, equipment and facility maintenance and repair expenses of $1.8 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes, an increase in 401(k) matching expenses of $1.3 million due to the prior year period reflecting less expenses due to the impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, an increase in employee medical benefits expenses of $1.2 million due to an increase in medical visits, an increase in third-party disposal expenses of $1.1 million due primarily to increased solid waste collection volumes and $1.4 million of other net expense increases.

Segment EBITDA in our Western segment increased $34.0 million, or 12.7%, to $301.5 million for the nine months ended September 30, 2021, from $267.5 million for the nine months ended September 30, 2020.

The increase was due primarily to an increase in revenues of $94.1 million, a decrease in expenses for processing recyclable commodities of $4.2 million due to increased recyclable commodity values resulting in price reductions charged by third-party recycling

processors, a decrease in intermodal rail expenses of $3.2 million due to a reduction in cargo volume and a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $2.4 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic, partially offset by an increase in labor expenses of $15.3 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, $13.9 million of additional operating costs from acquisitions closed subsequent to the nine months ended September 30, 2020, an increase in third-party trucking and transportation expenses of $6.6 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in taxes on revenues of $5.4 million due primarily to increased revenues in our solid waste markets, an increase in diesel fuel expense of $5.1 million due to higher fuel prices, an increase in third-party disposal expenses of $5.0 million due primarily to increased solid waste collection volumes, an increase in employee medical benefits expenses of $4.2 million due to an increase in medical visits, an increase in truck, container, equipment and facility maintenance and repair expenses of $4.0 million due primarily to parts and service rate increases, an increase in corporate overhead expense allocations of $3.0 million due to an increase in the overhead allocation rate resulting from an increase in corporate expenses qualifying for allocation, an increase in 401(k) matching expenses of $1.7 million due to the prior year period reflecting less expenses due to the impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, an increase in landfill maintenance, environmental compliance and daily cover expenses of $1.2 million due to increased compliance requirements under our landfill operating permits and $4.5 million of other net expense increases.

Segment EBITDA in our Eastern segment increased $15.9 million, or 17.5%, to $106.9 million for the three months ended September 30, 2021, from $91.0 million for the three months ended September 30, 2020.

The increase was due primarily to an increase in revenues of $51.8 million and $0.9 million of other net expense decreases, partially offset by $16.3 million of additional operating costs from acquisitions closed subsequent to the three months ended September 30, 2020, an increase in labor expenses of $5.4 million due primarily to employee pay increases, an increase in third-party trucking and transportation expenses of $3.2 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in truck, container, equipment and facility maintenance and repair expenses of $2.5 million due to parts and service rate increases and variability in the timing of major repairs, an increase in third-party disposal expenses of $2.0 million due primarily to increased rates for third party disposal and increased commercial collection volumes, an increase in leachate expense of $1.8 million due primarily to the impact of hurricanes causing higher precipitation in certain markets where our landfills are located, an increase in diesel fuel expense of $1.7 million due to higher fuel prices, an increase in 401(k) matching expenses of $1.4 million due to the prior year period reflecting less expenses due to the impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, an increase in employee medical benefits expenses of $1.4 million due to an increase in medical visits and an increase in taxes on revenues of $1.1 million due primarily to price-led increases in revenues.

Segment EBITDA in our Eastern segment increased $37.1 million, or 14.4%, to $295.4 million for the nine months ended September 30, 2021, from $258.3 million for the nine months ended September 30, 2020.

The increase was due primarily to an increase in revenues of $106.9 million, a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $3.2 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic and a decrease in expenses for uncollectible accounts receivable of $3.2 million primarily due to the prior year period incurring increased expenses due to customers experiencing financial difficulties resulting from the economic impact of the COVID-19 pandemic, partially offset by $27.7 million of additional operating costs from acquisitions closed subsequent to the nine months ended September 30, 2020, an increase in labor expenses of $10.4 million due primarily to employee pay increases, an increase in third-party disposal expenses of $6.2 million due primarily to increased rates paid for third party disposal and increased volumes in our Northeastern markets as they began to recover in 2021 from economic disruptions attributable to the COVID-19 pandemic, an increase in third-party trucking and transportation expenses of $6.2 million due primarily to opening a new transfer station facility in the latter half of 2020 and increased transfer station volumes in our Northeastern markets as they began to recover in 2021 from economic disruptions attributable to the COVID-19 pandemic, an increase in employee medical benefits expenses of $5.0 million due to an increase in medical visits, an increase in truck, container, equipment and facility maintenance and repair expenses of $4.9 million due primarily to parts and service rate increases, an increase in diesel fuel expense of $3.3 million due to higher fuel prices, an increase in taxes on revenues of $2.6 million due primarily to price-led increases in revenues, an increase in corporate overhead expense allocations of $2.0 million due to an increase in the overhead allocation rate resulting from an increase in corporate expenses qualifying for allocation, an

increase in 401(k) matching expenses of $1.9 million due to the prior year period reflecting less expenses due to the impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, an increase in landfill maintenance expenses of $1.5 million due to increased gas recovery system operating expenses and expenses incurred to adhere to compliance requirements under our landfill operating permits and other net expense increases of $4.5 million.

Segment EBITDA in our Southern segment increased $18.2 million, or 22.4%, to $99.6 million for the three months ended September 30, 2021, from $81.4 million for the three months ended September 30, 2020.

The increase was due to an increase in revenues of $41.7 million from organic growth and acquisitions, partially offset by an increase in labor expenses of $5.9 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in truck, container, equipment and facility maintenance and repair expenses of $4.3 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes, an increase in third-party disposal expenses of $2.4 million due primarily to increased solid waste collection volumes, an increase in diesel fuel expense of $2.3 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, an increase in 401(k) matching expenses of $2.1 million due to the prior year period reflecting less expenses due to the impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, an increase in third-party trucking and transportation expenses of $1.7 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in subcontracted hauling services of $1.5 million due to outsourcing the servicing of certain non-strategic collection customers to third party haulers, an increase in employee medical benefits expenses of $1.5 million due to an increase in medical visits, an increase in taxes on revenues of $1.0 million due primarily to increased revenues in our solid waste markets, a decrease to EBITDA of $0.3 million from the impact of operations disposed of subsequent to the three months ended September 30, 2020 and other net expense increases of $0.5 million.

Segment EBITDA in our Southern segment increased $15.2 million, or 5.5%, to $292.0 million for the nine months ended September 30, 2021, from $276.8 million for the nine months ended September 30, 2020.

The increase was due to an increase in solid waste revenues of $74.2 million from organic growth and acquisitions, a decrease in expenses for auto and workers’ compensation claims of $5.7 million due primarily to higher claims severity in the prior year period and adjustments recorded in the current year period to decrease projected losses on outstanding claims originally recorded prior to 2021 and a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $3.7 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic, partially offset by a decrease in EBITDA at our E&P operations of $14.2 million, consisting of a $29.7 million decrease in revenues being partially offset by a total decrease in expenses of $15.5 million attributable to declines in disposal volumes, headcount and equipment hours operated, an increase in labor expenses at our solid waste operations of $8.7 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in subcontracted hauling services at our solid waste operations of $7.6 million due to outsourcing the servicing of certain non-strategic collection customers to third party haulers, an increase in truck, container, equipment and facility maintenance and repair expenses of $6.6 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes, an increase in employee medical benefits expenses of $5.4 million due to an increase in medical visits, an increase in third-party disposal expenses at our solid waste operations of $5.2 million due primarily to increased solid waste collection volumes, an increase in third-party trucking and transportation expenses at our solid waste operations of $4.8 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in diesel fuel expense of $3.1 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, an increase in 401(k) matching expenses of $2.5 million due to the prior year period reflecting less expenses due to the impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, a decrease to EBITDA of $2.4 million from the impact of operations disposed of subsequent to the nine months ended September 30, 2020, an increase in expenses for uncollectible accounts receivable of $1.7 million, an increase in taxes on revenues of $1.4 million due primarily to increased revenues, an increase in corporate overhead expense allocations of $1.3 million due to an increase in the overhead allocation rate resulting from an increase in corporate expenses qualifying for allocation, an increase in leachate expense of $1.2 million due primarily to the impact of hurricanes causing higher precipitation in certain markets where our landfills are located and other net expense increases of $2.3 million.

Segment EBITDA in our Central segment increased $12.1 million, or 14.6%, to $95.0 million for the three months ended September 30, 2021, from $82.9 million for the three months ended September 30, 2020.

The increase was due primarily to an increase in revenues of $46.6 million from organic growth and acquisitions, partially offset by $12.4 million of additional operating costs from certain acquisitions closed subsequent to the three months ended September 30, 2020, an increase in labor expenses of $9.0 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in truck, container, equipment and facility maintenance and repair expenses of $3.1 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes, an increase in third-party disposal expenses of $2.6 million due primarily to increased solid waste collection volumes, an increase in 401(k) matching expenses of $1.4 million due to the prior year period reflecting less expenses due to the impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, an increase in diesel fuel expense of $1.2 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, an increase in employee medical benefits expenses of $1.1 million due to an increase in medical visits, an increase in taxes on revenues of $1.1 million due primarily to increased revenues in our solid waste markets, a decrease to EBITDA of $0.3 million from the impact of operations disposed of subsequent to the three months ended September 30, 2020 and other net expense increases of $2.3 million.

Segment EBITDA in our Central segment increased $33.3 million, or 14.1%, to $269.0 million for the nine months ended September 30, 2021, from $235.7 million for the nine months ended September 30, 2020.

The increase was due primarily to an increase in revenues of $126.4 million from organic growth and acquisitions and a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $2.4 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic, partially offset by $44.4 million of additional operating costs from certain acquisitions closed subsequent to the nine months ended September 30, 2020, an increase in labor expenses of $16.6 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in truck, container, equipment and facility maintenance and repair expenses of $7.0 million due primarily to parts and service rate increases, an increase in employee medical benefits expenses of $4.1 million due to an increase in medical visits, an increase in third-party disposal expenses of $3.7 million due primarily to increased solid waste collection volumes, an increase in corporate overhead expense allocations of $3.4 million due to an increase in the overhead allocation rate resulting from an increase in corporate expenses qualifying for allocation, an increase in third-party trucking and transportation expenses of $3.3 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in taxes on revenues of $2.8 million due primarily to increased revenues, an increase in expenses for uncollectible accounts receivable of $1.9 million due primarily to the prior year period collection of certain accounts deemed uncollectible in 2019, an increase in 401(k) matching expenses of $1.9 million due to the prior year period reflecting less expenses due to the impact of the June 1, 2020 to December 31, 2020 suspension of our 401(k) match, an increase in diesel fuel expense of $1.6 million due to higher fuel prices, a decrease to EBITDA of $0.4 million from the impact of operations disposed of subsequent to the nine months ended September 30, 2020 and other net expense increases of $4.4 million.

Segment EBITDA in our Canada segment increased $19.8 million, or 27.2%, to $92.3 million for the three months ended September 30, 2021, from $72.5 million for the three months ended September 30, 2020.

The increase was comprised of an increase of $15.8 million assuming foreign currency parity during the comparable reporting periods and an increase of $4.0 million from a higher average foreign currency exchange rate in effect during the comparable reporting periods.

The $28.2 million increase, which assumes foreign currency parity, was due primarily to an increase in revenues of $38.5 million, a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $1.3 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic and a decrease in expenses for uncollectible accounts receivable of $1.1

million primarily due to the prior year period incurring increased expenses due to customers experiencing financial difficulties resulting from the economic impact of the COVID-19 pandemic, partially offset by an increase in labor expenses of $4.3 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in diesel fuel expense of $2.3 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, an increase in third-party disposal expenses of $1.9 million due primarily to increased solid waste collection volumes, an increase in third-party trucking and transportation expenses of $1.2 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in truck, container, equipment and facility maintenance and repair expenses of $1.2 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes and other net expense increases of $1.8 million.

Segment EBITDA in our Canada segment increased $49.5 million, or 43.8%, to $162.6 million for the six months ended June 30, 2021, from $113.1 million for the six months ended June 30, 2020.

The $15.8 million increase, which assumes foreign currency parity, was due primarily to an increase in revenues of $29.0 million, partially offset by an increase in labor expenses of $4.9 million due primarily to employee pay increases and headcount additions to support solid waste volume increases, an increase in subcontracted hauling services of $2.2 million due primarily to the prior year period results including the impact of reversing accrued expenses associated with estimated equipment charge overages related to an outsourced collection contract, an increase in diesel fuel expense of $2.0 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, an increase in insurance premium expense of $0.9 million due to the prior year period results including the impact of recording a credit to expense resulting from premium audit refunds, an increase in expenses for uncollectible accounts receivable of $0.9 million primarily due to non-recurring expense reductions recorded in the prior year period to adjust reserves for uncollectible accounts receivable based upon actual payment defaults from customers experiencing financial difficulties resulting from the economic impact of the COVID-19 pandemic

being less than originally estimated, an increase in truck, container, equipment and facility maintenance and repair expenses of $0.8 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes and other net expense increases of $1.5 million.

Segment EBITDA in our Canada segment increased $69.3 million, or 37.3%, to $254.9 million for the nine months ended September 30, 2021, from $185.6 million for the nine months ended September 30, 2020.

The increase was comprised of an increase of $54.6 million assuming foreign currency parity during the comparable reporting periods and an increase of $14.7 million from a higher average foreign currency exchange rate in effect during the comparable reporting periods.

The $39.1 million increase, which assumes foreign currency parity, was due primarily to an increase in revenues of $46.7 million, a decrease in expenses for uncollectible accounts receivable of $1.9 million primarily due to the prior year period incurring increased expenses due to customers experiencing financial difficulties resulting from the economic impact of the COVID-19 pandemic and a decrease in supplemental bonuses and other cash incentive compensation to non-management personnel of $1.4 million due to the prior year period including non-recurring expenses to recognize services provided by our front-line employees during the COVID-19 pandemic, partially offset by an increase in labor expenses of $4.3 million due primarily to employee pay increases, an increase in diesel fuel expense of $2.3 million due to higher fuel prices, an increase in third-party trucking and transportation expenses of $1.0 million due primarily to increased landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in truck, container, equipment and facility maintenance and repair expenses of $1.0 million due to parts and service rate increases and other net expense increases of $2.3 million.

Segment EBITDA at Corporate decreased $3.7 million, to a loss of $6.4 million for the three months ended June 30, 2021, from a loss of $2.7 million for the three months ended June 30, 2020.

The decrease was due to an increase in equity-based compensation expenses of $5.3 million associated with an adjustment during the current year period of our common shares held in our deferred compensation plan by certain key executives to fair value as a result of the shares being exchanged for other investment options, a collective increase in travel, meeting, training and community activity expenses of $2.8 million due to event cancelation credits recognized in the prior year period and increased travel and social gatherings in the current year period due to a reduction in restrictions associated with the COVID-19 pandemic, an increase in equity-based compensation expenses of $2.3 million resulting primarily from adjustments to the amount of performance-based restricted share units granted in 2019 and 2020 that are estimated to ultimately vest based on the achievement of required financial performance results and $0.5 million of other net expense increases, partially offset by an increase in corporate overhead allocated through charges to our segments of $4.8 million due to an increase in expenses qualifying for allocation, a decrease in deferred compensation expenses of $1.4 million as a result of higher increases during the prior year period in the market value of investments to which employee deferred compensation liability balances are tracked and a decrease in direct acquisition expenses of $1.0 million due to a decrease in acquisition activity in the comparable periods.

Segment EBITDA at Corporate decreased $0.9 million, to a loss of $7.2 million for the six months ended June 30, 2021, from a loss of $6.3 million for the six months ended June 30, 2020.

The decrease was due to an increase in accrued recurring cash incentive compensation expense to our management of $8.8 million, an increase in deferred compensation expenses of $4.2 million as a result of increases in the market value of investments to which employee deferred compensation liability balances are tracked, an increase in equity-based compensation expenses of $2.0 million associated with the net impact of current and prior period adjustments of our common shares held in our deferred compensation plan by certain key executives to fair value as a result of the shares being exchanged for other investment options, an increase in equity-based compensation expenses of $1.8 million resulting primarily from adjustments to the amount of performance-based restricted share units granted in 2019 and 2020 that are estimated to ultimately vest based on the achievement of required financial performance results, an increase in professional fees of $1.1 million due primarily to increased expenses

associated with professional tax services, an increase in administrative payroll expenses of $1.0 million due primarily to annual pay increases and $0.6 million of other net expense increases, partially offset by an increase in corporate overhead allocated through charges to our segments of $18.6 million due to an increase in expenses qualifying for allocation.

The $54.6 million increase, which assumes foreign currency parity, was due primarily to an increase in revenues of $75.4 million, partially offset by an increase in labor expenses of $9.1 million due primarily to employee pay increases and headcount additions to support solid waste volume increases and the receipt in the prior year period of a government subsidy reimbursing us for certain payroll expenditures remitted to our employees during the COVID-19 pandemic, an increase in diesel fuel expense of $4.4 million due to higher fuel prices and increased consumption resulting from additional truck and equipment operating hours to support solid waste volume increases, an increase in subcontracted hauling services of $1.7 million due primarily to the prior year period results including the impact of reversing accrued expenses associated with estimated equipment charge overages related to an outsourced collection contract, an increase in third-party trucking and transportation expenses of $1.4 million due primarily to increased transfer station and landfill special waste volumes requiring trucking and transportation services to our landfills, an increase in truck, container, equipment and facility maintenance and repair expenses of $1.8 million due to parts and service rate increases and additional maintenance and repair requirements resulting from increased truck and equipment operating hours to support increases in our solid waste volumes and other net expense increases of $2.4 million.

Segment EBITDA at Corporate decreased $2.5 million, to a loss of $6.6 million for the three months ended September 30, 2021, from a loss of $4.1 million for the three months ended September 30, 2020.

The decrease was due to a decrease in corporate overhead allocated through charges to our segments of $10.2 million due to a decrease in expenses qualifying for allocation, an increase in direct acquisition expenses of $3.3 million due to an increase in acquisition activity in the comparable periods and a collective increase in travel, meeting, training and community activity expenses of $1.0 million due to increased travel and social gatherings in the current year period due to a reduction in restrictions associated with the COVID-19 pandemic, partially offset by a decrease in cash incentive compensation expense of $7.9 million due primarily to the prior year period including expenses for supplemental bonuses and other cash incentive compensation to non-management personnel to recognize services provided by our front-line employees during the COVID-19 pandemic, a decrease in equity-based compensation expenses of $1.2 million resulting primarily from expense increases recorded during the prior year period to the amount of performance-based restricted share units granted in 2018 that were estimated to ultimately vest based on the achievement of required financial performance results, a decrease in deferred compensation expenses of $1.1 million as a result of higher increases during the prior year period in the market value of investments to which employee deferred compensation liability balances are tracked and $1.8 million of other net expense decreases.

Segment EBITDA at Corporate decreased $3.2 million, to a loss of $13.7 million for the nine months ended September 30, 2021, from a loss of $10.5 million for the nine months ended September 30, 2020.

The decrease was due to an increase in deferred compensation expenses of $3.1 million as a result of increases in the market value of investments to which employee deferred compensation liability balances are tracked, an increase in administrative payroll expenses of $1.7 million due primarily to annual pay increases, an increase in direct acquisition expenses of $1.7 million due to an increase in acquisition activity in the comparable periods, an increase in employee relocation expenses of $1.7 million, a collective increase in travel, meeting, training and community activity expenses of $1.6 million due to increased travel and social gatherings in the current year period due to a reduction in restrictions associated with the COVID-19 pandemic, an increase in equity-based compensation expenses of $1.2 million associated with the net impact of current and prior period adjustments of our common shares held in our deferred compensation plan by certain key executives to fair value as a result of the shares being exchanged for other investment options and $0.7 million of other net expense increases, partially offset by an increase in corporate overhead allocated through charges to our segments of $8.5 million due to an increase in expenses qualifying for allocation.

LIQUIDITY AND CAPITAL RESOURCES

The following table sets forth certain cash flow information for the six months ended June 30, 2021 and 2020 (in thousands of U.S.

Six Months Ended

The following table sets forth certain cash flow information for the nine months ended September 30, 2021 and 2020 (in thousands of U.S.

Nine Months Ended

September 30,

Net cash provided by operating activities

Net cash used in investing activities

Net cash provided by (used in) financing activities

Net cash used in financing activities

Effect of exchange rate changes on cash, cash equivalents and restricted cash

Net increase in cash, cash equivalents and restricted cash

Net increase (decrease) in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

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Operating Activities Cash Flows

For the six months ended June 30, 2021, net cash provided by operating activities was $848.5 million.

For the six months ended June 30, 2020, net cash provided by operating activities was $753.2 million.

For the nine months ended September 30, 2021, net cash provided by operating activities was $1.270 billion.

For the nine months ended September 30, 2020, net cash provided by operating activities was $1.186 billion.

The $84.4 million increase was due primarily to the following:

1) Increase in earnings — Our increase in net cash provided by operating activities was favorably impacted by $21.0 million from an increase in net income, excluding depreciation, amortization of intangibles, share-based compensation, adjustments to and payments of contingent consideration recorded in earnings and loss on disposal of assets and impairments, due primarily to price increases, earnings from acquisitions closed subsequent to the six months ended June 30, 2020, earnings generated from the increased sales of recyclable commodities and renewal energy credits associated with the generation of landfill gas and an increase in the average Canadian dollar to U.S.

1) Increase in earnings — Our increase in net cash provided by operating activities was favorably impacted by $109.6 million from an increase in net income, excluding depreciation, amortization of intangibles, loss on early extinguishment of debt, share-based compensation, adjustments to and payments of contingent consideration recorded in earnings and loss on disposal of assets and impairments, due primarily to price increases, earnings from acquisitions closed subsequent to the nine months ended September 30, 2020, earnings generated from the increased sales of recyclable commodities and renewal energy credits associated with the generation of landfill gas and an increase in the average Canadian dollar to U.S.

dollar currency exchange rate offsetting a decline in earnings at our E&P operations.

2) Deferred income taxes — Our increase in net cash provided by operating activities was favorably impacted by $70.3 million from deferred income taxes as changes in deferred income taxes resulted in an increase to operating cash flows of $3.5 million for the six months ended June 30, 2021, compared to a decrease to operating cash flows of $66.8 million for the six months ended June 30, 2020.

The decrease in deferred taxes in the prior year period was attributable to the impairment of certain assets within our E&P operations .

3) Accounts payable and accrued liabilities — Our increase in net cash provided by operating activities was favorably impacted by $41.4 million from accounts payable and accrued liabilities as changes in accounts payable and accrued liabilities resulted in an increase to operating cash flows of $35.6 million for the six months ended June 30, 2021, compared to a decrease to operating cash flows of $5.8 million for the six months ended June 30, 2020.

The increase for the six months ended June 30, 2021 was due primarily to increases in operating expenses during the period which remained as outstanding obligations at June 30, 2021 and the timing of payroll cycles .

4) Other long-term liabilities — Our increase in net cash provided by operating activities was favorably impacted by $21.4 million from other long-term liabilities, as changes in other long-term liabilities resulted in an increase to operating cash flows of $10.6 million for the six months ended June 30, 2021, compared to a decrease to operating cash flows of $10.8 million for the six months ended June 30, 2020.

The increase for the six months ended June 30, 2021 was primarily attributable to the receipt of funds associated with the eminent domain purchase of an operating facility that will be replaced with a newly constructed facility in a future period.

The decrease for the six months ended June 30, 2020 was primarily attributable to declines in our deferred compensation liabilities due to distributions and the cash settlement of equity awards accounted for as liabilities that were granted to employees of Progressive Waste prior to June 1, 2016.

5) Deferred revenue — Our increase in net cash provided by operating activities was favorably impacted by $12.6 million from deferred revenue as changes in deferred revenue resulted in an increase to operating cash flows of $14.5 million for the six months ended June 30, 2021, compared to an increase to operating cash flows of $1.9 million for the six months ended June 30, 2020.

During the six months ended June 30, 2021, deferred revenue increased due to price increases on our advanced billed residential and commercial collection services, the timing of bi-monthly advance service billings and a landfill in our Southern segment receiving an advance payment for future disposal services.

6) Accounts receivable – Our increase in net cash provided by operating activities was unfavorably impacted by $63.2 million from accounts receivable as changes in accounts receivable resulted in a decrease to operating cash flows of $14.2 million for the six months ended June 30, 2021, compared to an increase to operating cash flows of $49.0 million for the six months ended June 30, 2020.

The decrease for the six months ended June 30, 2021 was due to increases in revenues, which remained as outstanding receivables at June 30, 2021.

The increase for the six months ended June 30, 2020 was attributable to the collection of outstanding accounts receivable existing prior to the COVID-19-driven economic downturn, with accounts receivable at June 30, 2020 reflecting the impact of lower uncollected revenues.

As of June 30, 2021, we had a working capital surplus of $414.2 million, including cash and equivalents of $727.4 million.

Our working capital surplus increased $34.6 million from a working capital surplus of $379.6 million at December 31, 2020 including cash and equivalents of $617.3 million, due primarily to the impact of increases in cash balances and accounts receivable being partially offset by deceased prepaid income taxes, increased accounts payable and increased deferred revenue.

2) Deferred income taxes — Our increase in net cash provided by operating activities was favorably impacted by $53.3 million from deferred income taxes as changes in deferred income taxes resulted in a decrease to operating cash flows of $24.3 million for the nine months ended September 30, 2021, compared to a decrease to operating cash flows of $77.6 million for the nine months ended September 30, 2020.

The decrease in deferred taxes for the nine months ended September 30, 2021 was primarily due to the tax deduction timing of make-whole premium payments attributable to the early extinguishment of the outstanding senior notes under our master note purchase agreements.

The decrease in deferred taxes for the nine months ended September 30, 2020 was attributable to the impairment of certain assets within our E&P operations .

3) Other long-term liabilities — Our increase in net cash provided by operating activities was favorably impacted by $17.5 million from other long-term liabilities, as changes in other long-term liabilities resulted in an increase to operating cash flows of $12.7 million for the nine months ended September 30, 2021, compared to a decrease to operating cash flows of $4.8 million for the nine months ended September 30, 2020.

The increase for the nine months ended September 30, 2021 was primarily attributable to the receipt of funds associated with the eminent domain purchase of an operating facility that will be replaced with a newly constructed facility in a future period and an increase in employee deferred compensation liabilities.

The decrease for the nine months ended September 30, 2020 was primarily attributable to the cash settlement of equity awards accounted for as liabilities that were granted to employees of Progressive Waste prior to June 1, 2016.

4) Deferred revenue — Our increase in net cash provided by operating activities was favorably impacted by $12.4 million from deferred revenue as changes in deferred revenue resulted in an increase to operating cash flows of $15.8 million for the nine months ended September 30, 2021, compared to an increase to operating cash flows of $3.4 million for the nine months ended September 30, 2020.

During the nine months ended September 30, 2021, deferred revenue increased due to price increases on our advanced billed residential and commercial collection services and the timing of bi-monthly advance service billings.

5) Prepaid expenses – Our increase in net cash provided by operating activities was favorably impacted by $12.3 million from prepaid expenses due primarily to a decrease in prepaid vendor payments.

6) Accounts receivable – Our increase in net cash provided by operating activities was unfavorably impacted by $88.3 million from accounts receivable as changes in accounts receivable resulted in a decrease to operating cash flows of $42.4 million for the nine months ended September 30, 2021, compared to an increase to operating cash flows of $45.9 million for the nine months ended September 30, 2020.

The decrease for the nine months ended September 30, 2021 was due to increases in revenues, which remained as outstanding receivables at September 30, 2021.

The increase for the nine months ended September 30, 2020 was attributable to the collection of outstanding accounts receivable existing prior to the COVID-19-driven economic downturn, with accounts receivable at September 30, 2020 reflecting the impact of lower uncollected revenues.

7) Accounts payable and accrued liabilities — Our increase in net cash provided by operating activities was unfavorably impacted by $17.2 million from accounts payable and accrued liabilities as changes in accounts payable and accrued liabilities resulted in an increase to operating cash flows of $52.7 million for the nine months ended September 30, 2021, compared to an increase to operating cash flows of $69.9 million for the nine months ended September 30, 2020.

The increase for the nine months ended September 30, 2021 was due primarily to increases in operating expenses during the period which remained as outstanding obligations at September 30, 2021, the settlement of an acquired compensation liability and the timing of payroll cycles .

The increase for the nine months ended September 30, 2020 was due primarily to increases in accrued interest expense and accrued incentive compensation expense and the deferral of payroll taxes as permitted by the Coronavirus Aid, Relief, and Economic Security Act of 2020.

8) Capping, closure and post-closure expenditures – Our increase in net cash provided by operating activities was unfavorably impacted by a $10.0 million increase in capping, closure and post-closure expenditures due to the timing of interim capping requirements .

As of September 30, 2021, we had a working capital surplus of $15.0 million, including cash and equivalents of $339.5 million.

Our working capital surplus decreased $364.6 million from a working capital surplus of $379.6 million at December 31, 2020 including cash and equivalents of $617.3 million, due primarily to the impact of decreased cash balances, decreased prepaid income taxes, increased accounts payable and accrued liabilities and increased deferred revenue being partially offset by increased accounts receivable.

To date, we have experienced no loss or lack of access to our cash and equivalents;

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Investing Activities Cash Flows

Net cash used in investing activities decreased $27.2 million to $332.8 million for the six months ended June 30, 2021, from $360.0 million for the six months ended June 30, 2020.

The significant components of the decrease included the following:

1) A decrease in cash paid for acquisitions of $18.8 million;

2) A decrease in capital expenditures for undeveloped landfill property of $16.4 million associated with expansion land at certain existing landfill facilities;

3) An increase from restricted asset accounts of $6.2 million due to higher draws on existing accounts in the prior year period.

Net cash used in investing activities increased $384.8 million to $1.035 billion for the nine months ended September 30, 2021, from $650.1 million for the nine months ended September 30, 2020.

The significant components of the increase included the following:

1) An increase in cash paid for acquisitions of $387.5 million;

2) An increase in capital expenditures at operations owned in the comparable periods of $48.0 million due to increases in land and buildings, heavy equipment and containers;

3) An increase in capital expenditures at operations acquired during the comparative periods of $10.8 million due to additional trucks and containers;

4) A decrease in capital expenditures for undeveloped landfill property of $66.8 million attributable to expenditures during the nine months ended September 30, 2020 for expansion land at certain existing landfill facilities.

Financing Activities Cash Flows

Net cash used in financing activities increased $460.7 million to net cash used in financing activities of $393.2 million for the six months ended June 30, 2021, from net cash provided by financing activities of $67.5 million for the six months ended June 30, 2020.

Net cash used in financing activities increased $487.5 million to net cash used in financing activities of $491.6 million for the nine months ended September 30, 2021, from net cash used in financing activities of $4.1 million for the nine months ended September 30, 2020.

The significant components of the increase included the following:

1) An increase from the net change in long-term borrowings of $262.0 million (long-term borrowings increased $44.5 million during the six months ended June 30, 2021 and increased $306.5 million during the six months ended June 30, 2020) due primarily to maintaining a portion of the proceeds from our 2050 Senior Notes offering in cash;

1) An increase from the net change in long-term borrowings of $153.1 million (long-term borrowings increased $131.9 million during the nine months ended September 30, 2021 and increased $285.0 million during the nine months ended September 30, 2020);

2) An increase from premiums paid on early extinguishment of debt of $110.6 million resulting from the repayment in September 2021 of all of our outstanding senior notes under our master note purchase agreements;

3) An increase in payments to repurchase our common shares of $200.0 million due to a higher volume of shares repurchased;

3) An increase in cash dividends paid of $10.4 million due primarily to an increase in our quarterly dividend rate for the six months ended June 30, 2021 to $0.205 per share, from $0.185 per share for the six months ended June 30, 2020;

4) A decrease in debt issuance costs of $11.0 million due to the prior year period including costs incurred for the issuance of our 2030 Senior Notes and 2050 Senior Notes;

4) An increase in cash dividends paid of $14.8 million due primarily to an increase in our quarterly dividend rate for the nine months ended September 30, 2021 to $0.205 per share, from $0.185 per share for the nine months ended September 30, 2020;

5) An increase in debt issuance costs of $6.9 million attributable to senior note offerings completed in the comparative periods;

6) An increase in contingent consideration payments of $5.2 million due primarily to a payment remitted in 2021 to settle a contingent liability assumed in the Progressive Waste acquisition;

7) A decrease in tax withholdings related to net share settlements of equity-based compensation of $4.8 million due to a decrease in the value of equity-based compensation awards vesting.

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Information regarding our NCIB can be found under the “Shareholders’ Equity” section in Note 17 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q and is incorporated herein by reference.

On July 27, 2021, our Board of Directors approved, subject to receipt of regulatory approvals, the annual renewal of our NCIB.

The renewal is expected to commence following the conclusion of our current NCIB expiring August 9, 2021.

Upon approval, we anticipate that we will be authorized to make purchases during the period of August 10, 2021 to August 9, 2022 or until such earlier time as the NCIB is completed or terminated at our option.

Our Board of Directors authorized the initiation of a quarterly cash dividend in October 2010 and has increased it on an annual basis.

In October 2020, our Board of Directors authorized an increase to our regular quarterly cash dividend of $0.02, from $0.185 to $0.205 per share.

Cash dividends of $107.3 million and $96.9 million were paid during the six months ended June 30, 2021 and 2020, respectively.

In October 2021, our Board of Directors authorized an increase to our regular quarterly cash dividend of $0.025, from $0.205 to $0.230 per share.

Cash dividends of $160.8 million and $145.9 million were paid during the nine months ended September 30, 2021 and 2020, respectively.

We cannot assure you as to the amounts or timing of future dividends.

We made $271.4 million in capital expenditures for property and equipment during the six months ended June 30, 2021, and we expect to make total capital expenditures for property and equipment of approximately $675 million in 2021.

We have funded and intend to fund the balance of our planned 2021 capital expenditures principally through cash on hand, internally generated funds and borrowings under our Credit Agreement and 2021 Credit Agreement.

We made $479.5 million in capital expenditures for property and equipment during the nine months ended September 30, 2021, and we expect to make total capital expenditures for property and equipment of approximately $700 million in 2021.

We have funded and intend to fund the balance of our planned 2021 capital expenditures principally through cash on hand, internally generated funds and borrowings under our 2021 Credit Agreement.

In addition, we may make substantial additional capital expenditures in acquiring land and solid waste businesses.

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We cannot currently determine the amount of these expenditures because they will depend on the number, nature, condition and permitted status of any acquired landfill disposal facilities.

We believe that our cash and equivalents, 2021 Credit Agreement and the funds we expect to generate from operations will provide adequate cash to fund our working capital and other cash needs for the foreseeable future.

We believe that our cash and equivalents, 2021 Credit Agreement and the funds we expect to generate from operations will provide adequate cash to fund our working capital and other cash needs for the

foreseeable future.

However, disruptions in the capital and credit markets could adversely affect our ability to draw on our 2021 Credit Agreement or raise other capital.

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Those banks may not be able to meet their funding commitments if they experience shortages of capital and liquidity or if they experience excessive volumes of borrowing requests within a short period of time.

As of June 30, 2021, $650.0 million under the term loan and $505.0 million under the revolving credit facility were outstanding under our Credit Agreement, exclusive of outstanding standby letters of credit of $114.4 million.

We also have issued $7.2 million of letters of credit at June 30, 2021 under facilities other than the Credit Agreement.

As of September 30, 2021, $650.0 million under the term loan and $634.9 million under the revolving credit facility were outstanding under our 2021 Credit Agreement, exclusive of outstanding standby letters of credit of $114.7 million.

We also have $6.8 million of letters of credit issued and outstanding at September 30, 2021 under facilities other than the 2021 Credit Agreement.

Our 2021 Credit Agreement matures in July 2026.

We are a well-known seasoned issuer.

In the future, we may issue debt securities under a shelf registration statement on Form S-3 filed with the SEC or in private placements from time to time on an opportunistic basis, based on market conditions and available pricing.

Unless otherwise indicated in the relevant offering documents, we expect to use the

proceeds from any such offerings for general corporate purposes, including repaying, redeeming or repurchasing debt, acquiring additional assets or businesses, capital expenditures and increasing our working capital.

As of June 30, 2021, we had the following contractual obligations:

On September 20, 2021, we completed an underwritten public offering (the “Offering”) of $650.0 million aggregate principal amount of 2.20% Senior Notes due 2032 (the “2032 Senior Notes”) and $850.0 million aggregate principal amount of 2.95% Senior Notes due 2052 (the “2052 Senior Notes” and, together with the 2032 Senior Notes, the “Notes”).

We issued the Notes under the Indenture, dated as of November 16, 2018, by and between the Company and U.S.

Bank National Association, as trustee, as supplemented by the Fifth Supplemental Indenture, dated as of September 20, 2021.

In connection with the Offering, we exercised our right to repay the $1.500 billion of senior notes (the “Private Notes”) that were governed by our 2008 and 2016 master note purchase agreements.

We repaid the Private Notes, including the $110.6 million make-whole payment, with the net proceeds from the Offering and borrowings under the revolving credit facility provided under our 2021 Credit Agreement.

We recorded $115.3 million to Loss on early extinguishment of debt during the nine months ended September 30, 2021 due to the repayment of the Private Notes and associated make-whole premium and related fees.

We will pay interest on the Notes semi-annually in arrears.

The 2032 Senior Notes will mature on January 15, 2032 and the 2052 Senior Notes will mature on January 15, 2052.

The Notes are our senior unsecured obligations, ranking equally in right of payment with our other existing and future unsubordinated debt and senior to any of our future subordinated debt.

The Notes are not guaranteed by any of our subsidiaries.

See Note 10 to our Condensed Consolidated Financial Statements included in Part I, Items 1 of this report for further details on the debt agreements.

We are a well-known seasoned issuer with an effective shelf registration statement on Form S-3 filed in September 2021, which registers an unspecified amount of debt securities, including debentures, notes or other types of debt.

In the future, we may issue debt securities under our shelf registration statement or in private placements from time to time on an opportunistic basis, based on market conditions and available pricing.

Unless otherwise indicated in the relevant offering documents, we expect to use the proceeds from any such offerings for general corporate purposes, including repaying, redeeming or repurchasing debt, acquiring additional assets or businesses, capital expenditures and increasing our working capital.

As of September 30, 2021, we had the following contractual obligations:

Payments Due by Period

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dollar LIBOR rate loans, U.S.

dollar base rate loans, Canadian-based bankers’ acceptances, and Canadian dollar prime rate loans.

At June 30, 2021, $501.0 million of the outstanding borrowings drawn under the revolving credit facility were in U.S.

dollar base rate loans, Canadian-based bankers’ acceptances or BA equivalent notes, and Canadian dollar prime rate loans.

At September 30, 2021, $631.0 million of the outstanding borrowings drawn under the revolving credit facility were in U.S.

LIBOR rate loans, which bear interest at the LIBOR rate plus the applicable margin (for a total rate of 1.09% on such date) and $3.9 million of the outstanding borrowings drawn under the revolving credit facility were in Canadian-based bankers’ acceptances, which bear interest at the Canadian Dollar Offered Rate plus the applicable acceptance fee (for a total rate of 1.43% on such date).

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Outstanding amounts on the term loan can be either base rate loans or LIBOR loans.

At June 30, 2021, all amounts outstanding under the term loan were in LIBOR loans which bear interest at the LIBOR rate plus the applicable margin (for a total rate of 1.30% on such date).

3) $125.0 million in principal payments due 2022 related to our 2022 Senior Notes.

The 2022 Senior Notes bear interest at a rate of 3.09%.

4) $200.0 million in principal payments due 2023 related to our 2023 Senior Notes.

The 2023 Senior Notes bear interest at a rate of 2.75%.

5) $150.0 million in principal payments due 2024 related to our 2024 Senior Notes.

The 2024 Senior Notes bear interest at a rate of 3.24%.

6) $375.0 million in principal payments due 2025 related to our 2025 Senior Notes.

The 2025 Senior Notes bear interest at a rate of 3.41%.

At September 30, 2021, all amounts outstanding under the term loan were in LIBOR loans which bear interest at the LIBOR rate plus the applicable margin (for a total rate of 1.09% on such date).

3) $500.0 million in principal payments due 2028 related to our 2028 Senior Notes.

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9) $38.3 million in principal payments related to our notes payable to sellers and other third parties.

Our notes payable to sellers and other third parties bear interest at rates between 2.42% and 10.35% at June 30, 2021, and have maturity dates ranging from 2028 to 2036.

Our notes payable to sellers and other third parties bear interest at rates between 2.42% and 10.35% at September 30, 2021, and have maturity dates ranging from 2028 to 2036.

10) $7.1 million in principal payments related to our financing leases.

Our financing leases bear interest at a rate of 1.89% at June 30, 2021, and have a lease expiration date of 2026.

Our financing leases bear interest at a rate of 1.89% at September 30, 2021, and have a lease expiration date of 2026.

The following assumptions were made in calculating cash interest payments:

1) We calculated cash interest payments on the Credit Agreement using the LIBOR rate plus the applicable LIBOR margin, the base rate plus the applicable base rate margin, the Canadian Dollar Offered Rate plus the applicable acceptance fee and the Canadian prime rate plus the applicable prime rate margin at June 30, 2021.

1) We calculated cash interest payments on the 2021 Credit Agreement using the LIBOR rate plus the applicable LIBOR margin, the base rate plus the applicable base rate margin, the Canadian Dollar Offered Rate plus the applicable acceptance fee and the Canadian prime rate plus the applicable prime rate margin at September 30, 2021.

We assumed the 2021 Credit Agreement is paid off when it matures in July 2026.

2) We calculated cash interest payments on our interest rate swaps using the stated interest rate in the swap agreement less the LIBOR rate through the earlier expiration of the term of the swaps or the term of the credit facility.

Contingent consideration payments include $68.0 million recorded as liabilities in our Condensed Consolidated Financial Statements at June 30, 2021, and $19.5 million of future interest accretion on the recorded obligations.

Contingent consideration payments include $67.0 million recorded as liabilities in our Condensed Consolidated Financial Statements at September 30, 2021, and $18.8 million of future interest accretion on the recorded obligations.

We are party to operating lease agreements and finance leases.

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These purchase obligations are established in the ordinary course of our business and are designed to provide us with access to products at competitive, market-driven prices.

At June 30, 2021, our unconditional purchase obligations consisted of multiple fixed-price fuel purchase contracts under which we have 37.7 million gallons remaining to be purchased for a total of $93.5 million.

The current fuel purchase contracts expire on or before December 31, 2023.

These arrangements have not materially affected our financial position, results of operations or liquidity during the six months ended June 30, 2021, nor are they expected to have a material impact on our future financial position, results of operations or liquidity.

At September 30, 2021, our unconditional purchase obligations consisted of multiple fixed-price fuel purchase contracts under which we have 48.6 million gallons remaining to be purchased for a total of $121.1 million.

The current fuel purchase contracts expire on or before February 28, 2024.

These arrangements have not materially affected our financial position, results of operations or liquidity during the nine months ended September 30, 2021, nor are they expected to have a material impact on our future financial position, results of operations or liquidity.

We have obtained financial surety bonds, primarily to support our financial assurance needs and landfill and E&P operations.

We provided customers and various regulatory authorities with surety bonds in the aggregate amounts of approximately $1.255 billion and $1.210 billion at June 30, 2021 and December 31, 2020, respectively.

These arrangements have not materially affected our financial position, results of operations or liquidity during the six months

ended June 30, 2021, nor are they expected to have a material impact on our future financial position, results of operations or liquidity.

We provided customers and various regulatory authorities with surety bonds in the aggregate amounts of approximately $1.286 billion and $1.210 billion at September 30, 2021 and December 31, 2020, respectively.

From time to time, we evaluate our existing operations and their strategic importance to us.

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Although we believe our reporting units would not be impaired by such dispositions, we could incur losses on them.

The disposal tonnage that we received in the six month periods ended June 30, 2021 and 2020, at all of our landfills during the respective period, is shown below (tons in thousands):

Six Months Ended June 30,

The disposal tonnage that we received in the nine month periods ended September 30, 2021 and 2020, at all of our landfills during the respective period, is shown below (tons in thousands):

Nine Months Ended September 30,

Owned operational landfills and landfills operated under life-of-site agreements

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Other companies may calculate adjusted free cash flow differently.

Our adjusted free cash flow for the six month periods ended June 30, 2021 and 2020, are calculated as follows (amounts in thousands of U.S.

Six Months Ended

Our adjusted free cash flow for the nine month periods ended September 30, 2021 and 2020, are calculated as follows (amounts in thousands of U.S.

Nine Months Ended

September 30,

Net cash provided by operating activities

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(b) Reflects the elimination of cash received in conjunction with the divestiture of certain operations.

(d) Reflects the cash settlement of pre-existing Progressive Waste share-based awards during the period.

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Management uses adjusted EBITDA as one of the principal measures to evaluate and monitor the ongoing financial performance of our operations.

We define adjusted EBITDA as net income (loss) attributable to Waste Connections, plus or minus net income (loss) attributable to noncontrolling interests, plus or minus income tax provision (benefit), plus interest expense, less interest income, plus depreciation and amortization expense, plus closure and post-closure accretion expense, plus or minus any loss or gain on impairments and other operating items, plus other expense, less other income.

We define adjusted EBITDA as net income attributable to Waste Connections, plus or minus net income (loss) attributable to noncontrolling interests, plus income tax provision, plus interest expense, less interest income, plus depreciation and amortization expense, plus closure and post-closure accretion expense, plus or minus any loss or gain on impairments and other operating items, plus other expense, less other income.

We further adjust this calculation to exclude the effects of other items management believes impact the ability to assess the operating performance of our business.

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Other companies may calculate adjusted EBITDA differently.

Our adjusted EBITDA for the three and six month periods ended June 30, 2021 and 2020, are calculated as follows (amounts in thousands of U.S.

Our adjusted EBITDA for the three and nine month periods ended September 30, 2021 and 2020, are calculated as follows (amounts in thousands of U.S.

Three Months Ended

Six Months Ended

Net income (loss) attributable to Waste Connections

Nine Months Ended

September 30,

Net income attributable to Waste Connections

Net income (loss) attributable to noncontrolling interests

Income tax provision (benefit)

Income tax provision

Interest expense

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Other expense (income), net

Loss on early extinguishment of debt

Transaction-related expenses (a)

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Other companies may calculate these non-GAAP financial measures differently.

Our adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections for the three and six month periods ended June 30, 2021 and 2020, are calculated as follows (amounts in thousands of U.S.

Our adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections for the three and nine month periods ended September 30, 2021 and 2020, are calculated as follows (amounts in thousands of U.S.

dollars, except per share amounts):

Three Months Ended

Six Months Ended

Reported net income (loss) attributable to Waste Connections

Nine Months Ended

September 30,

Reported net income attributable to Waste Connections

Amortization of intangibles (a)

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Fair value changes to equity awards (d)

Tax effect (e)

Tax items (f)

Loss on early extinguishment of debt (e)

Tax effect (f)

Tax items (g)

Adjusted net income attributable to Waste Connections

Diluted earnings (loss) per common share attributable to Waste Connections’ common shareholders:

Reported net income (loss)

Diluted earnings per common share attributable to Waste Connections’ common shareholders:

Reported net income

Adjusted net income

Shares used in the per share calculations:

Reported diluted shares

Adjusted diluted shares (g)

____________________

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(d) Reflects fair value accounting changes associated with certain equity awards .

(e) The aggregate tax effect of the adjustments in footnotes (a) through (d) is calculated based on the applied tax rates for the respective periods.

(f) Reflects the impact of a portion of our 2019 inter-entity payments no longer being deductible for tax purposes due to the finalization of tax regulations on April 7, 2020 under Internal Revenue Code section 267A and an increase in deferred tax liabilities resulting from the E&P impairment.

(g) Reflects reported diluted shares adjusted for shares that were excluded from the reported diluted shares calculation due to our reporting a net loss during the three and six months ended June 30, 2020.

(e) Reflects the make-whole premium and related fees associated with the early termination of $1.5 billion in senior notes.

(f) The aggregate tax effect of the adjustments in footnotes (a) through (e) is calculated based on the applied tax rates for the respective periods.

(g) Reflects the impact of a portion of our 2019 inter-entity payments no longer being deductible for tax purposes due to the finalization of tax regulations on April 7, 2020 under Internal Revenue Code section 267A and an increase in deferred tax liabilities resulting from the E&P impairment.

In the current environment, we have seen inflationary pressures resulting from higher fuel and labor costs in certain markets and higher resulting third party costs in areas such as brokerage, repairs and construction.

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To the extent that there are decreases in fuel costs, in some cases, a portion of these reductions are passed through to customers in the form of lower fuel and material surcharges.

Therefore, we believe that we should be able to increase prices to offset many cost increases that result from inflation in the ordinary course of business.

Therefore, we believe that we should be able to increase prices to offset many cost increases that result from inflation in the ordinary course of

However, competitive pressures or delays in the timing of rate increases under certain of our contracts, particularly amid the economic impact of the COVID-19 pandemic, may require us to absorb at least part of these cost increases, especially if cost increases exceed the average rate of inflation.

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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 2. Management’s Discussion and Analysis